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Flow of foreign aid poor

By Rafiq Hasan
Flow of foreign aid was 41 per cent less during the first 1 1 moths of fiscal 1999-2000 than that in the corresponding period of the previous financial year.
The total foreign aid was 1206.8 million dollars from July 1999 to May 2000 against 2054 million dollars in the corresponding period of fiscal 1998-1999. sources in the Economic Relation Division (ERD) said.
Finance Ministry sources said the flow of foreign aid. particularly food aid was "very high" in fiscal 1998-99 because of the devastating flood in the country in that year. The food aid was worth 269.8 million dollars in fiscal 1998-1999, which came down to 50.5 million dollars in the following year. The sources however said the total aid in fiscal 1999-2000 may reach 1500 million dollars.
Food ahi is declining also because donors arc reluctant to disburse food aid as the country
is nearing food autarky, the sources said.
The total aid in fiscal 1999-200 included 110.5 million dollars commodity aid and 1045 million dollars project aid.
In fiscal 1999-2000. the disbursement of aid was also far less than the donors' commitments. ERD estimates show that the donors pledged 2040 million dollars but the disbursement was 1206 million dollars till May this year.
The Finance Minister in his budget speech announced a 17.500 crore taka annual development programme for fiscal 2000-2001, more than 49 per cent of which has been projected to come from external sources as foreign aid and donation.
Before the aid consortium meeting In Paris in April this year, donors Indicated that they would provide between 1.80 anil 2.20 billion dollars as aid to Bangladesh during fiscal 2000-200)
Evaluating the aid flow. Finance Ministry- sources said the government will have to go for massive borrowing to fulfil the target of foreign assistance for the development programme.
One source however commented. “It would not be much difficult for the government as many countries are ready fo provide loan or < redit instead of donation".
Till May In fiscal 1999-2000. Asian Development Bank (ADB) topped the list of the 33 donors by providing 273.9 million dollars as projec t aid. followed by Japan with 262 million dollars including 143.5 million as project aid and 1 10 million as commodity aid
Only four donors provided food aid to Bangladesh during the period. They are Australia (6.6 million dollars). Japan (7.9 million dollars). World Food Programme (31.3 million dollars) and France (4.7 million dollars).