AID AND INFLUENCE ALSO BY JUST FAALAND Essays on the Theory of Trade Discrimination, Chr. Michelsen Institute, Bergen, 1964 Bangladesh: the Test Case of Development, C. Hurst and Company, London, 1976 (with J. R. Parkinson) Growth, Employment and Equity: a Comprehensive Strategy for the Sudan, International Labour Office, 1976 (as Chief of Mission) ALSO BY NURUL ISLAM Studies in Foreign Capital and Economic Development, Charles Tuttle and Co., Vermont, 1960 Financial Resources and Development Potential of East Pakistan, Government of East Pakistan, Dacca, 1962 A Short-Term Model for Pakistan's Economy: an Econometric Analysis, Oxford University Press, London, 1964 Studies in Cansumer Demand, Vols I and II, Oxford University Press, Dacca, 1965-6 Development Planning in Bangladesh: a Study in Political Economy, C. Hurst and Company, London, 1977 ALSO BY JACK PARKINSON The Economics of Shipbuilding in the United Kingdom, Cambridge University Press, 1960 Business Economics (with James Bates), Basil Blackwell (2nd edition, 1969) Agricultural Co-operation in Northern Ireland, Cmd 484, HMSO, Belfast, 1965 Northern Ireland Development Programme, 1970-75, HMSO 1970 (with Professor Sir Robert Matthew and Professor Thomas Wilson) Bangladesh: the Test Cast of Development, London, 1976 (with Just Faaland; see above) AID AND INFLUENCE The Case of Bangladesh Edited by Just Faaland The Chr. Michelsen Institute, Bergen, Norway Contributors Just Faaland Nurul Islam Jack Parkinson © Chr. Michelsen Institute, Bergen 1981 Softcover reprint of the hardcover 1st edition 1981 978-0-333-28985-3 All rights reserved. No part of this publication may be reproduced or transmitted, in any form or by any means, without permission First published 1981 by THE MACMILLAN PRESS LTD London and Basingstoke Companies and representatives throughout the world ISBN 978-1-349-05474-9 ISBN 978-1-349-05472-5 (eBook) DOI 10.1007/978-1-349-05472-5 Contents List of Tables vii List of Abbreviations vm Preface Xl PART ONE: THE STORY AND ITS SETTING The Story Just Faa/and 3 2 The Debate Nurul Islam 14 3 The Needs Jack Parkinson 25 PART TWO: RELATIONSHIPS TO DONORS 35 4 Aid Requirements and Donor Preferences Nurul Islam 37 5 Interest Groups and Aid Conditionality Nurul Islam 53 6 Commodity Aid Nurul Islam 73 7 Food Aid Jack Parkinson 82 PART THREE: DONOR CO-ORDINATION AND COLLECTIVE LEVERAGE 103 8 The Bangladesh Aid Group Just Faa/and 105 9 The Debt Liability of Pakistan Just Faa/and 128 10 The Role of the World Bank Jack Parkinson 147 11 The Role of the Fund Jack Parkinson 165 v vi Contents PART FOUR: AID AND DEPENDENCE 177 12 The Lessons Just Faa/and 179 Index 194 List of Tables 3.1 Commitments of aid 1971-2 to 1977-8 in USS million 29 3.2 Percentage distribution by source of grants and loans: December 1971 to June 1978 31 3.3 Availability and disbursement of aid, 1971-2 to 1976-7 32 7.1 Prices of foodgrains, January 1975 85 vii List of Abbreviations United Nations Organisations UN United Nations IBRD /World Bank International Bank for Reconstruction and Development IDA International Development Associ ation IMF International Monetary Fund UNFPA United Nations Fund for Population Activities UN ROB United Nations Special Relief Office in Bangladesh UN ROD United Nations Relief Operations Dacca NIEO New International Economic Order International Agencies EEC European Economic Community OECD Organisation for Economic Coop eration and Development DAC Development Assistance Committee OPEC Organisation of Petroleum Exporting Countries National Assistance Agencies CIDA Canadian International Assistance Agency DTH Netherlands Ministry of Development Cooperation (International Tech nical Assistance Department) SIDA Swedish International Development Agency USAID United States Agency for International Development viii List of Abbreviations lX BADC Bangladesh Agricultural Development Corporation General PVC Polyvinyl Chloride SDR Special Drawing Rights