Foreign Aid in South Asia examines the individual South Asian country experience in dealing with foreign aid. The articles in this book show that the effectiveness of foreign aid as a developmental tool over the last few decades has been mixed, and that the Paris Declaration of 2005 has brought about some improvement in aid ownership, harmonization, mainstreaming, utilization, etc. The book examines how emerging as well as less developed South Asian economies are adapting to these developments in the context of security issues, post-conflict rehabilitation/reconstruction, and so on.

The book provides many lessons for designing an international framework for aid or international aid architecture through case studies, highlighting the future policy priorities for that country. For the very first time, focus is laid on Bhutan, Maldives and Afghanistan—the three least-documented countries in the region—besides discussing about India, Pakistan, Bangladesh, Sri Lanka and Nepal.




The regime of foreign aid in Bangladesh has undergone important changes over the last decades in terms of its focus, scale, composition and operational modalities. There has been an important shift, particularly in the context of a gradual decline in Bangladesh's aid dependence. It appears that Bangladesh has now evolved from an aid to a trade dependent economy. During the 1990s and 2000s, the remarkable performance of the ready-made garment exports in the markets of the EU and the US and large inflow of remittances, shaped Bangladesh's foreign policy than its requirement for foreign aid. However, the picture was different during the 1980s when Bangladesh's foreign policy was meant to ensure an uninterrupted flow of foreign aid.

An analysis of the flows of aid over ...

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