Download - Foreign Aid Bangladesh
-
8/13/2019 Foreign Aid Bangladesh
1/21
Foreign Aid: A Review
Annesha Zeheen
-
8/13/2019 Foreign Aid Bangladesh
2/21
Introduction
When a new child comes to your
family,
All of you are happy, we want topresent her/him something
But the child is not happy, because
S/he comes with a debt burden of
USD156 (Tk. 12500)
A burden that makes his/her future
dark.
-
8/13/2019 Foreign Aid Bangladesh
3/21
Receipts of Foreign Aid
(USD mio): History
-
8/13/2019 Foreign Aid Bangladesh
4/21
Steps to Foreign Aid
Opening Pipeline
Pledges
Commitment
Disbursement
Closing Pipeline
-
8/13/2019 Foreign Aid Bangladesh
5/21
There is always gap between
Commitment and Disbursement
0
500
10001500
2000
2500
3000
3500
4000
4500
5000
FY
72
FY
74
FY
76
FY
78
FY
80
FY
82
FY
84
FY
86
FY
88
FY
90
FY
92
FY
94
FY
96
FY
98
FY
00
FY
02
FY
04
FY
06
FY
08
FY
10
FY
12
Commitment
Disbursement
-
8/13/2019 Foreign Aid Bangladesh
6/21
Reasons for the Gap
Problems with donor countries
Local currency issue
Less Utilization
Conditionalities
Other poverty stricken countries urgency
Geo-political
-
8/13/2019 Foreign Aid Bangladesh
7/21
Types of Foreign Aid
According to Source
Bilateral
Multilateral (Suppliers Credit)
Explanation of the sources
Characteristics of BilateralMultilateral
-
8/13/2019 Foreign Aid Bangladesh
8/21
-
8/13/2019 Foreign Aid Bangladesh
9/21
Important Bilateral Donors
-
8/13/2019 Foreign Aid Bangladesh
10/21
Types of Foreign Aid
According to
Grant
Conditional Non-conditional
Loans
Concessional
Non Concessional
(What is grant element?)
-
8/13/2019 Foreign Aid Bangladesh
11/21
Percentage Share of Grants to
Total
010
20
30
40
5060
70
80
90Grant
Loans (concessional)
-
8/13/2019 Foreign Aid Bangladesh
12/21
Types of Foreign Aid
According to Purpose
Food Aid
Commodity Aid
Project Aid
(Budget Support)
-
8/13/2019 Foreign Aid Bangladesh
13/21
-
8/13/2019 Foreign Aid Bangladesh
14/21
Characteristics of Food Aid
Counterpart Funds
Weather Hazards
Competitive Recipients
-
8/13/2019 Foreign Aid Bangladesh
15/21
Food Aid: Historical
-
8/13/2019 Foreign Aid Bangladesh
16/21
Commodity and Project Aid
Stories of Commodity Aid and
conditionalities
Our preference is for Project Aid
Utilization of Project Aid
-
8/13/2019 Foreign Aid Bangladesh
17/21
Disbursement of Commodity and
Project Aid
0
500
1000
1500
2000
2500
197
1/72
197
3/74
197
5/76
197
7/78
197
9/80
198
1/82
198
3/84
198
5/86
198
7/88
198
9/90
199
1/92
199
3/94
199
5/96
199
7/98
199
9/00
200
1/02
200
3/04
200
5/06
200
7/08
200
9/10
201
1/12
Commodity Project
-
8/13/2019 Foreign Aid Bangladesh
18/21
Debt Servicing
Bangladesh has no debt crisis
Bangladesh never but once failed to service
debt.
Debt and services are still at manageable
level.
-
8/13/2019 Foreign Aid Bangladesh
19/21
Debt and Debt Service
0
500
1000
1500
2000
2500
3000
0
5000
10000
15000
20000
25000
FY
72
FY
74
FY
76
FY
78
FY
80
FY
82
FY
84
FY
86
FY
88
FY
90
FY
92
FY
94
FY
96
FY
98
FY
00
FY
02
FY
04
FY
06
FY
08
FY
10
FY
12
Debt Outstanding
Total Debt Service
-
8/13/2019 Foreign Aid Bangladesh
20/21
Debt Service Ratio
0
5
10
15
20
25
30
35
FY
72
FY
74
FY
76
FY
78
FY
80
FY
82
FY
84
FY
86
FY
88
FY
90
FY
92
FY
94
FY
96
FY
98
FY
00
FY
02
FY
04
FY
06
FY
08
FY
10
FY
12
Debt Service % of Exports
-
8/13/2019 Foreign Aid Bangladesh
21/21
Growth and Aid in Bangladesh
Study by Rehman Sobhan
When there is 1% decline in aid, domestic
resource mobilization increases by about 1
percent.