Foreign aid and Development in Bangladesh and the Pacific: A Comparative Secondary Analysis of Benefits, Challenges, and Structural Dependency
Abstract
Foreign aid is commonly defined as the voluntary transfer of resources from one country to another. While such assistance can yield both benefits and drawbacks, its impact on economic growth remains a subject of intense debate. Disentangling the effects of aid is methodologically challenging, particularly in economies where aid is deeply integrated, and opportunities for controlled experimentation are limited. Prominent economists such as Jeffrey Sachs argue that aid serves as a critical driver of growth and development. In contrast, critics like Dambisa Moyo contend that aid has paradoxically perpetuated poverty and impeded growth by fostering corruption, dependency, export constraints, and even susceptibility to health pandemics. This paper examines Bangladesh and the Pacific region as a case study, analyzing both the positive and negative effects of foreign aid on the countries’ economic growth and development trajectory.
How to Cite This Article
Raphael Semel (2026). Foreign aid and Development in Bangladesh and the Pacific: A Comparative Secondary Analysis of Benefits, Challenges, and Structural Dependency . International Journal of Multidisciplinary Research and Growth Evaluation (IJMRGE), 7(1), 968-980. DOI: https://doi.org/10.54660/IJMRGE.2026.7.1.968-980
References
- 1999. Net DACdisbursementsgrewatanaverageannualrateof3percentbetween1975and2000(Coyle,2023\. Positive Impactsof Foreign Aid Evaluatingaideffectivenessin PNGrequiresspecificationofevaluativecriteria. Asaresourcetransfermechanismandprojectfinancinginstrument, aidhasregisteredmeasurablesuccess(Hnanguie,2003\. Aidfacilitatedthebridgingofinvestment-savingsgapsingrossterms, addressedforeignexchangeconstraints, andfinanceddevelopmentprojects, achievinghighinternalratesofreturn-includingschools, clinics, healthposts, bridges, roads, capacity-buildinginitiatives, andwatersupplysystems(Pryke,2019\. Duringmuchofthepost-independenceperiod, PNGrankedas Australia'slargestbilateralaidrecipient, reflectinghistoricaltiesandpovertyalleviationobjectives. Tangibleaidoutcomesarevisiblenationwide: roadandbridgeconstruction, schoolandhospitalinfrastructure, institutionalestablishment, andoverseastechnicaltrainingforthousands International Journalof Multidisciplinary Researchand Growth Evaluationwww. allmultidisciplinaryjournal. com971|Pageof Papua New Guineans(Hnanguie,2003\. Inthehealthsector, aidhasfinancedmajorinfrastructure-including Port Moresby General Hospital-andsupportederadicationcampaignsagainstsmallpoxandpolio. Fertilitydeclinesinselectedprovincesaredirectlyattributabletodonorpopulationprogrammes, particularly United Nationsinitiatives(Kabir,2020\. Theongoing HIV/AIDSresponseremainsalmostentirelyaid-funded, encompassinghealthinfrastructure, personneltraining, publicawarenesscampaigns, andinitialadvocacyeffortstosecuregovernmentcommitmenttopublichealthaction(Brown,2021\. Agriculturalaidestablishedresearchandextensionnetworkscrucialfordevelopinganddisseminatinghigh-yieldtreecropvarieties, nowintegraltonationalcroppingsystems(Kabir,2020\. Transportandinfrastructureassistancecontributedsubstantiallytoconstructingandupgradingmajorroadnetworks, includingsectionsofthe Hiritanoand Okukhighways. Acrossagriculture, livestock, fisheries, education, health, watersupply, finance, transport, andinstitutionalcapacitydevelopment, aidhasleftanindelibleimprint(Hnanguie,2003\. Humanitarianassistancemitigatedthesocialimpactsofthe1998 Aitapetsunami, facilitated Kokopo'sreconstructionfollowingthe1996volcaniceruptions, andsupported Bougainville'spost-conflictrebuildingfrom2000onward. Fromtheearly1990s, donors-ledbythe World Bank-supportedsuccessivegovernmentsinundertakingeconomicpolicyreformtoreducestateinterventionismandcreateprivate-sector-friendlypolicyenvironments(Brown,2021\. Despiteresistancefromentrenchedinterests, threedecadesofreformefforthaveyieldedsubstantialprogress. Aid-supportedreformshavefacilitatedrealisticexchangeratepolicies, improvedmonetarymanagement, widespreadderegulation, andpriceliberalisation. Whileprivatisationandinstitutionalreformremainincomplete, donor-ledreformprocesseshavedemonstrablytransformed PNG'spolicyenvironment(Tosun, Kirikkaleli,&Safakli,2020\. Negative Impactsof Foreign Aid Overthepast48years, evenostensiblypositiveachievementshaveattractedincreasingscrutiny. Theadventofstructuraladjustmentprogrammesblurredaidobjectivesandcomplicatedeffectivenessevaluation(Feeny,2023\. Theevidentiaryrecordsuggeststhatforeignaidto PNGbetween1975and2000registeredmorefailuresthansuccesses. The ADB's1998 Country Assistance Planreportedthatonlyfiveof16evaluatedprojectswereratedasgenerallysuccessful. The World Bank'sevaluationof30projectsundertakensince1968indicatedafailurerateof22percentforprojectscompletedbetween1968and1978, escalatingto60percentforpost-1978projects(Hnanguie,2003\. Thiselevatedfailurerateislargelyattributabletoinadequatecounterpartfundingandgovernmenteconomicmismanagement. Multiplefactorshaveunderminedaideffectivenessin PNG. First, aideffectivenesswascompromisedwhendonorobjectivesdivergedfrom PNG'seconomicdevelopmentpriorities. Aidmotivatedbydonorcommercialorforeignpolicyconsiderationsfrequentlyfailedtoservelocaleconomicinterests(Feeny,2023\. Suchnon-economicmotivesproducedaidactivitiespoorlytailoredto PNG'sspecificneedsandabsorptivecapacities. Second, PNG'ssocioeconomicandpoliticalenvironmentcriticallyaffectedaidoutcomes, witheconomicpolicyqualityandgovernmentalstabilityexertingdecisiveinfluence(Tosun, Kirikkaleli,&Safakli,2020\. Thegovernment'scapacitytointegrateaidwithincoherentdevelopmentstrategyandmanagementframeworksprovedessentialtoaidsuccess. Donorscannotcompensatefortheabsenceofaneffectivegovernmentequippedwithappropriatebudgetingandplanningprocesses(Feeny,2023\. Recurringaidproblemsin PNGoriginateingovernmentalfunctionalbreakdowns. Projectsustainabilityfailuresfollowingdonorresourceterminationtypicallyreflectinadequaterecurrentexpenditurebudgeting. Similarly, aidcoordinationfailures-producingoverlapping, contradictory, andredundantactivitiesstemfromgovernmentincapacitytointegratedonorassistancewithincoherentnationaldevelopmentbudgetingandplanningexercises(Hnanguie,2003\. Chronicpoliticalinstabilityandinfightinghaveinstitutionalizedcrisismanagementmodalities, wherebylong-termdevelopmentplanningandsystematicbudgetingaresupplantedbyadhocgap-filling, continuousexternalcreditornegotiation, andincreasedpoliticizationofrevenueallocation(Pryke,2019\. Overtime, soundmanagementpracticeserode, andpubliccorruptionproliferates. Persistentunder-investmentinmaintenanceandrecurrentexpendituresprogressivelyincapacitatespublicorganizations. Resource-starvedpublicmanagersandpoliticiansincreasinglylobbyforforeignaidtoaddresspressingemergencyneedsratherthanlong-termdevelopmentchallenges(Coyle,2023\. Pressedtodemonstraterapidresults, donoragenciesfrequentlycircumventthearduous, long-termtaskofdevelopingcentralgovernmentmanagementcapacities. Donorshaveexercisedcontroloverprojectidentification, design, andevaluationtocompensateforlimitedgovernmentcapacitytoundertakethesecriticalfunctions(Feeny,2023\. Manyaidprojectscontinuetobedesignedwithminimallocalinput. Donorsdeploylong-termexpatriatetechnicaladvisersratherthanrelyonlocalexpertise(Coyle,2023\. Moreperniciously, donorshaveattemptedtobypasscentralgovernmentinstitutionsentirely-establishingstand-aloneprojectstructuresandincreasinglychannelingresourcesthroughcivilsocietyandnon-governmentalorganizations(Hnanguie,2003\. Thesepracticessystematicallyunderminecapacitydevelopmentbymarginalizinggovernmentinstitutionswithinaidprocesses. Forexample, onlytwopercentofallprojectswithinthepredominantlydonor-funded Public Investment Programmehaveeverundergoneformalgovernmentevaluation(Hnanguie,2003\. Valuableopportunitiesforexperientiallearninginprojectdesignandevaluationareforfeited. Moreseriously, suchpracticeserodegovernment'ownership'overprojectsanddiminishprospectsforsustainedlong-termfinancialcommitment(Pryke,2019\. Higherlevelsofaideffectivenessareattainablewhenthegovernmentintegratesaidwithindomesticbudgetingandplanningframeworksandexercisestheprerogativetorefuseassistanceinconsistentwithnationaldevelopmentpriorities(Feeny,2023\. Foreign Aidto Fiji Fijimaintainsmultilateralandbilateralrelationshipsthroughwhichdevelopmentassistanceflowsfromdonornations(Tosun, Kirikkaleli,&Safakli,2020\. Principalbilateraldonorsinclude Japan, Australia, Germany, the United States, China, New Zealand, and Korea. Multilateralpartners International Journalof Multidisciplinary Researchand Growth Evaluationwww. allmultidisciplinaryjournal. com972|Pagecomprisethe World Bank Group, Asian Development Bank, European Union, United Nationssystem, International Fundfor Agricultural Development, and Commonwealth Fundfor Technical Cooperation(Nailatikau,2022\. Aid Volumeand Dependency Profile Fijireceivescomparativelymodestforeignaidrelativetoregionalneighbors. Averageannualaidflowsconstituteapproximatelytwopercentof Fiji'sgrossdomesticproduct(GDP\, significantlybelowcorrespondingratiosfor Samoa(35percent\, Solomon Islands(60percent\, Tonga(34percent\, and Vanuatu(25percent\(World Bank Group,2021\. Onapercapitabasis, Fijireceives US$87, substantiallylessthan Samoa(US$527\, Solomon Islands(US$612\, Tonga(US$909\, and Vanuatu(US$506\(Australian Departmentof Foreign Affairs,2023\. Fiji'saiddependencyisthusconsiderablyattenuated. Moreover, annualremittancesfromoverseasresidents-drivenbyglobalizationandincreasedprofessionalandworkermigrationhaveprogressivelyeclipsedforeignaidineconomicsignificance(Nailatikau,2022\. Contributionsto Socialand Economic Development Foreignaidhashelpedbridge Fiji'sinvestment-savingsgapsingrossterms, addressforeignexchangeconstraints, andfinancedevelopmentprojects, achievinghighinternalratesofreturn, includingschools, clinics, healthposts, bridges, roads, capacity-building, andtrainingprogrammes(Salem,2020\. Asin PNG, manyaidachievementswerecompromisedbycounterproductivegovernmenteconomicpolicies. Donorshavesupportedsuccessiveadministrationsinundertakingeconomicpolicyreformtoreducestateinterventionandcultivateprivate-sector-friendlypolicyenvironments(Ligaiula,2022\. Threedecadesofreformefforthavegeneratedsubstantialprogress. Aidhassupportedtheimplementationofrealisticexchangeratepolicies, improvedmonetarymanagement, widespreadderegulation, andpriceliberalisation. Whileprivatisationandinstitutionalreformagendasremainincomplete, donor-ledreformprocesseshavecontributedtotransforming Fiji'spolicyenvironment, socialservices, andeconomicgrowthtrajectory(Salem,2020\. Negative Impactsof Foreign Aid Professor Helen Hughesdeliveredasevereindictmentofaideffectivenessin Fiji, observingpooreconomicgrowthdespiteplentiful Westernaidandconcludingthatforeignaidhadfailedthecountry(Ligaiula,2022\. Hughesidentifiedsystemicweaknessesinaidadministration: poorprojectselection; ineffectiveimplementation; laxmonitoring; andinadequateevaluation. Shefurthercriticised Fijiangovernmentleadersformanipulatingdonorcompetitiontocaptureaidresourcesforpersonalbenefit(Salem,2020\. Thepost-9/11waronterrorismreorienteddonorpriorities. Roger Riddle, inakeynoteworkshopaddress, observedthatevaluativequestionshadshiftedoverthreedecades: fromwhetherprojectsmetimmediateinfrastructureobjectives, towhetheraidmademeasurableimpactsonpoverty, andultimatelytowhetherrecipientcountriesmighthavebeenbetteroffwithoutaidaltogether(Nailatikau,2022\. Accumulatingevidencesuggeststhatunconditionalaidflowshaveperpetuatedpovertyanddeepeneddependencysyndromes. Aidhasbeenimplicatedinsuppressingtraditionalcropexports, erodingtheinternationalcompetitivenessofdomesticallyprocessedgoods, andcontributingtorealexchangerateappreciationavariantof Dutchdiseasethatrendersexportslessattractiveininternationalmarkets(Ligaiula,2022; Nailatikau,2022\[27,. Summaryand Comparative Implications Thisreviewhasdocumentedbothconvergentanddivergentpatternsinforeignaidto Bangladeshandthe Pacific Island Countries. Acrosscases, aiddemonstratesafundamentallydualisticcharacter: capableoffinancingcriticalinfrastructure, humandevelopment, andpolicyreform, yetsimultaneouslyvulnerabletopoliticalcapture, institutionalmarginalisation, andunintendedeconomicdistortions. The Pacificcasesilluminatestructuralchallenges-aiddependency, weakabsorptivecapacity, donorfragmentation, andtheerosionoflocalownershipthatresonatewith Bangladesh'sexperience. Samoaexemplifiesthegeopoliticalinstrumentalisationofaidandaccountabilitydeficitsthatenableresourcemisappropriation. PNGprovidesextensiveevidenceofhowchronicpoliticalinstability, weakplanningsystems, anddonorpracticesthatcircumventgovernmentinstitutionssystematicallyundermineaideffectivenessandcapacitydevelopment. Fijidemonstratesthatloweraiddependencydoesnotimmuniserecipientsfromthedysfunctionsofpoorprojectselection, weakimplementation, and Dutchdiseaseeffects. Thesecomparativeinsightsinformthesubsequentanalysisof Bangladesh'saidexperience, towhichthisstudynowturns. Theconvergentchallengesidentifiedacrossthesedistinctdevelopmentalcontextsunderscoretheimperativeforsystemicreforminbothdonorpracticesandrecipientgovernanceframeworks. Withoutsuchreform, foreignaidrisksperpetuatingtheverystructuraldependenciesitpurportstoresolve. Researchmethodology Research Design Thisstudyemploysasecondaryresearchdesign, whichreferstothesystematicgatheringandsynthesisofinformationthatalreadyexistsandispubliclyavailable. Unlikeprimaryresearch, whichgeneratesnewdata, secondaryresearchutilisesdatapreviouslycollectedbyotherinvestigators, oftensubjectedtopriorstatisticalanalysis, andnotownedbythepresentresearcher(Ruggiano&Perry,2019\. Suchdataaretypicallyderivedfromprimarysourcesandsubsequentlymadeaccessibleforbroaderscholarlyandprofessionaluse. Secondarydatathusconstitutessecond-handinformation, originallygatheredbyothersfordistinctpurposes. Insecondaryresearch, existingdataaresystematicallycollated, criticallyevaluated, andsynthesisedtoenhancetheoveralleffectivenessandanalyticaldepthofthenewinvestigation. Thisresearchdrawsupondataoriginallycollectedbyotherscholarsandinstitutionsconcerningforeignaidanditspositiveandnegativeimplicationsforrecipientcountries(Cheong, Lyons, Houghton,&Majumdar,2023\. Data Sources Thedataforthisstudywerecollectedfromadiverserangeofonlinesources, including:
- 1. Peer-reviewedacademicjournals
- 2. Officialpolicydocumentsandgovernmentreports International Journalof Multidisciplinary Researchand Growth Evaluationwww. allmultidisciplinaryjournal. com973|Page
- 3. Scholarlybooksandbookchapters
- 4. Institutionalanddevelopmentagencyreports
- 5. Newspapersandreputableperiodicals
- 6. Magazinesandgreyliterature Thesesourceswereselectedbasedontheirrelevance, authority, andcontributiontounderstandingthemultifaceteddimensionsofforeignaid. Typesof Secondary Data Secondarydatamaybeclassifiedintotwoprincipaltypes: qualitativeandquantitative. Qualitativesecondarydataconcernintangibleattributesandencompassfactorssuchasquality, preference, perception, appearance, andcontextualmeaning(Wickham,2019\. Suchdataareessentialforexploringthenuancedexperiences, policyenvironments, andsocio-politicaldynamicsthatshapeaideffectiveness. Quantitativesecondarydatacomprisesnumericalinformation, includingstatistics, percentages, financialflows, andeconometricindicators(Wickham,2019\. Thesedataenablethemeasurementofaidvolumes, sectoralallocations, anddevelopmentaloutcomes. Thisresearchintegratesbothqualitativeandquantitativesecondarydatafromabroadarrayofonlinedocumentsanddatasets, ensuringacomprehensiveandmethodologicallybalancedinvestigation. Data Collection Procedure Datacollectionconstitutesafundamentalcomponentofanyresearchstudy. Itinvolvesthesystematicgatheringofinformationfromavailablesourcestoaddressadefinedresearchproblem(George,2023\. Theprocessenablesresearcherstoevaluatecurrentoutcomes, identifypatterns, andprojectfuturetrendsandpossibilities. Effectivedatacollectiontypicallyproceedsfromthemostfoundationalinformationrelevanttotheproblem, progressivelyexpandinginvolumeandcomplexityastheinvestigationadvances(Wickham,2019\. Twooverarchingmethodsofdatacollectionarerecognised: primaryandsecondary. Eachmethodrequirescarefulidentificationofdatatypes, sources, andappropriatecollectiontechniques. Diversecollectionmethodsareemployedacrosscommercial, governmental, andacademicresearchcontexts, withvarioussourcesaccesseddependingonwhetherprimaryorsecondarydataarebeinggathered(George,2023\. Whetherappliedtoscholarlyinquiryorpracticalproblem-solving, rigorousdatacollectionenhancesdecision-makingandimprovesresearchoutcomes. Thisstudyutilizessecondarydatacollectionexclusively, concentratingonthefieldofforeignaidassistance-particularlyflowsfromdevelopedtodevelopingnations. Datawerecollectedonmultipledimensionsofaid, including:
- 1. Donorandrecipientperspectivesonaidobjectivesandeffectiveness
- 2. Processesofaidnegotiation, disbursement, andimplementation
- 3. Challengesencounteredduringtheaidlifecycle
- 4. Advantagesanddisadvantages, includingbothintendedbenefitsandunintendedconsequences(Cheong, Lyons, Houghton,&Majumdar,2023\Insecondaryresearch, thecapacitytocollectauthenticandrelevantdataandtoformulatesolutionsthatmeetresearchobjectivesultimatelydependsupontheresearcher'sabilitytoexercisecriticalthinkingindigesting, interpreting, andsynthesizingexistinginformation. Data Analysis Secondarydataanalysisinvolvestheuseofdataoriginallygatheredbyotherresearchersandisdefinedasthereanalysisofpreviouslycollectedinformation(Wickham,2019\. Itmayalsobeunderstoodastheanalysisofdatabyresearcherswhowerenotinvolvedintheoriginaldatacollectionprocess(Ruggiano&Perry,2019\. Awidevarietyofdatasourcesareavailableforsecondaryanalysis, andtheselectionofappropriatesourcesisdeterminedbythespecificfocusandobjectivesoftheresearch(Ruggiano&Perry,2019\. Secondarydataanalysisisoneofthemostwidelyemployeddatacollectionandanalyticaltechniquesinsocialscienceresearch(Wickham,2019\. Despiteitslong-standingtraditionandcontinuedprevalence, themethodisnotwithoutitscritics. Aprincipalcriticismholdsthatsecondaryanalysisissuitableonlyforhighlyexperiencedresearchers(Cheong, Lyons, Houghton,&Majumdar,2023\. Nevertheless, notwithstandingitsinherentlimitations, secondarydataanalysisremainsaninvaluableresearchtechniquenotonlywithinthesocialsciencesbutacrossvirtuallyalldisciplines. Ruggianoand Perry(2019\contendthatitisdifficulttoconceiveofanycredibleresearchstudythatdoesnot, insomemeasure, benefitfromsecondarydataanalysis. Thisstudyundertakesasystematicandcriticalexaminationofexistingdataandinformationonforeignaid. Theanalyticalfocusencompasses:
- 1. Theprocessesbywhichrecipientcountriessecureforeignaid
- 2. Themodalitiesofaiddeliveryandimplementation
- 3. Thebenefitsderivedfromaidassistance
- 4. Thepositiveandnegativeimplicationsexperiencedbyrecipientcountries Bangladeshwaspurposivelyselectedasthecasestudyforthisinvestigation. Theanalysisexamineshowandfromwhom Bangladeshhasreceivedforeignaid, thetypesofbenefitsaccrued, theimplications-bothfavourableandadverse-encountered, andthespecificchallengesthathaveariseninthecourseofaidreceipt. Thesedataweresystematicallyanalysed, interpreted, andsynthesisedtogeneratethefindingsandconclusionspresentedinthisstudy. Ethical Considerationsin Secondary Research Althoughsecondaryresearchdoesnotinvolvedirectinteractionwithhumanparticipants, ethicalconsiderationsremainpertinent. Thisstudyensuresthatallsecondarydatasourcesareproperlyattributedandcitedinaccordancewithacademicintegritystandards. Dataareusedexclusivelyforthepurposesforwhichtheywereoriginallymadepubliclyavailable, andnomisrepresentationoftheoriginalauthors'findingsorintentionsisundertaken. Limitationsand Mitigation Strategies Secondaryresearchissubjecttocertaininherentlimitations. Theseincludetheresearcher'slackofcontroloveroriginaldataquality, potentialmismatchesbetweentheoriginaldatacollectionpurposesandthepresentresearchquestions, andthepossibilityofpublicationbiasinavailableliterature. Tomitigatetheselimitations, thisstudy: International Journalof Multidisciplinary Researchand Growth Evaluationwww. allmultidisciplinaryjournal. com974|Page
- 1. Triangulatesfindingsacrossmultipleindependentsources
- 2. Criticallyevaluatesthemethodologicalrigouroforiginalstudies
- 3. Explicitlyacknowledgeswheredatalimitationsmayaffectconclusions Research Cases Review Analysis Foreignaidassistance: Acasestudyof Bangladesh Bangladeshhasbeenaforeignaidrecipientsinceitbecameindependent. Accordingtoresearchdoneontheeffectsofforeignaidin Bangladesh, therearetwodifferentviews(Sen, Islametal,2019\. Thetraditionalviewshowsthesignificantbeneficialeffectsontherecipientcountries. Itisarguedthatforeigncapitalnotonlycomplementsdomesticresourcesofthecapital-deficientcountries, butalsohelpstorelieve(Sen, Islametal,2019\. Ithelpstoaccessmoderntechnologyandmanagerialskillsintherecipientcountries. Buttheeconomicgrowthofrecipientcountriesoverthelastfourdecadesdoesnotsupporttheconventionalwisdom. Accordingto Rafiand Khan,(2021\, thereisanegativeexperienceofforeigncapitalflows. Theradicalanti-aidviewshowsthenegativeeffectofforeignaid. Itoccursduetoinappropriatetechnology, distortsdomesticincomedistribution, andleadstoacorruptgovernmentinthoserecipientcountries(Sen, Islametal,2019\. Thesetwodifferentviewsdescribetheforeignaidfromothercountriesthatisreceivedby Bangladesh. Forcollectingforeignaid, Bangladeshtakesarisklikecorruptionscomeintoplay, andpoliticalharassmentalsotakesitstoll. Therearemanytypesofhiddenagendasandstringattachtoforeignaidthat Bangladeshmustbeaware. Theseimpedimentsandhindranceswithforeignaidputalotofpressureonthe Bangladeshgovernmenttobecautiousandcarefullyusetheaidproperly(Sen, Islametal,2019\. Earlytrendofforeignaidto Bangladesh Intheearlytrendsofdevelopmentaidto Bangladesh, thecountryinthefirstthreedecadesreceivedalotofforeignaidandfinancialassistancefromothercountriessinceitsindependencein1971(Rafi&Khan,2021\. Theysaidinthelasttwodecades, thedisbursementofforeignaidincreased, causingannual GDPtoincreasetooattherateof6.15percent. Thesocialandeconomicindicators, suchastheincreaseinlifeexpectancyatbirth, increasedfrom65yearsin2001to72yearsin
- 2019. Alongwiththat, theadolescentbirthrate(per1,000women\fellfrom109in2001to81in2019, duetoeffortstoreducethechildmarriagerateandincreasingsecondaryschoolenrollmentratesfrom51%to72%(Rafi&Khan,2021\. Theinfantmortalityrate(under5\decreasedfrom81.6(per1,000livebirths\in2001to30.8in
- 2019. Asperthe Centrefor Policy Dialogue(CPD\Bangladesh, healthaidhasbeenasignificantdeterminantofhealthoutcomesin Bangladeshinthepasttwodecades. Accordingto Rafiand Khan(2021\, foreignaidtowardshealthhasincreasedfromapproximately USD138millionin2001to USD203millionin
- 2018. Therefore, improvementsinthesocialindicatorscanbelargelyattributedtotheeffortsofthe Governmentof Bangladeshand Non-government Organizations, andforeignaidreceivedinsectorsthatimprovedsocialindicatorsin Bangladesh(Rafi&Khan,2021\. Thetablebelowindicatesthedisbursementofaidannual GDPgrowthof Bangladesh. Fig1: Comparisonof ODAdisbursedandtheannual GDPgrowth. beenaforeignaidrecipientcountryreceivingabout$56.5billioninforeignaidfromthedonorcountriesduringthe1971-2012period. Thisshowsthat Bangladeshhasbeenarecipientofforeignaidsincethenineties. They, likeeveryotheraidrecipientcountry, havebeendependentonaid. Bangladeshreceivesforeignassistancemainlytofinancethebudgetandtradedeficit, plustheannualdevelopmentprogram(Hossain,2014\. Theforeignassistancereceivedby Bangladeshisconstitutedmainlybygrantsandinterest-basedloans. Duringthe1971-2021period, loansoccupiedalargeportion(58.22percent\ofthetotalexternalassistance, whilegrantsmadeup41.78percentofallforeignassistance(Hossain,2014\. Thefactthattheamountofloansbythegovernmentof Bangladeshtooutsidecountriesexceedstheamountofthegrantsthatthecountryreceives. Plunging Bangladeshintodeeploansthattheyareunabletopayontime. International Journalof Multidisciplinary Researchand Growth Evaluationwww. allmultidisciplinaryjournal. com975|Page Effectoflabormigrationon Bangladesh Labormigrationhaslongbeenaprominentpovertyalleviationanddevelopmentstrategyfor Bangladeshsinceitsindependencein1971(Ahmed, Islam&Moniruzzaman,2025\. Thisisanotherformofaidfromforeigncountriesthatisprovidedto Bangladeshiwomen. Thisistoalleviatepovertyindevelopingcountries, especiallyfamiliesthatarebelowthepovertyline. Annually, aroundhalfamillion Bangladeshisleavethecountrytoworkoverseas, andtheremittancessentbythemigrantsispivotalfor Bangladesh'sbeenaconsistentgrowthinremittances, andin2020, itstandsat$21.75billion-anincreaseof18.4%from
- 2019. Internationalremittanceaccountedfor6.6%of Bangladesh's GDPin2020, placingitattheeighthpositionamongthelargestremittance-receivingcountriesoftheworld, whichunderlinestheimportanceoflabormigrationin Bangladesh(Ahmed, Islam&Moniruzzaman,2025\. Remittancesarethemoneythatisearnedby Bangladeshimigrantlabourersandissentbackhometodeveloptheirfamiliesthatarebackhomein Bangladesh. Thisfinancialassistanceverymuchhelped Bangladeshfamiliestomeettheirsocialneedslikefood, water, clothing, schoolfees, medicalcosts, andotherhouseholdneeds. Thepandemicfrom2019-2021putapauseonthismigrationlaboursinmanyregionsandcountriesaroundtheworld, withnoexceptionto Samoa. Duetotheclosingofbordersallaroundtheworld, thenumberoflabourimmigrantshasdropped. Forexample, Bangladesh'sdecreaseof69%insendinglabourforcesoverseascomparedto2018, theyearbeforethepandemic. Whilein2019, morethan700,000 Bangladeshimigrantsmigratedasguestworkers, thisfiguredroppedto217,669in2020(see Table1\. Inthecaseofwomen'smigration, thedropinstatisticsisevenhigher. Atotalof21,934femaleworkersmigratedfrom Bangladeshasguestworkersin2020, whichwas104,786in2019almostfourtimeshigherandfellby79%comparedwiththepreviousyear(see Table2\(Ahmed, Islam&Moniruzzaman,2025\. Fig2: Year-wiseinternationallabormigrationfrom Bangladesh(20112020\Fig3: Year-wiseoverseasemploymentofwomenmigrantsfrom Bangladesh(20112020\International Journalof Multidisciplinary Researchand Growth Evaluationwww. allmultidisciplinaryjournal. com976|Page Thefirsttableshowstheinternationallabourmigrationforallthemigrantlaborersintheyears2011-2020, andthesecondtableshowstheyear-wiseoverseasemploymentofwomenmigrantsfrom Bangladeshfromtheyears2011-
- 2022. Thestatisticsintableoneshowsthatthenumberofmigrantlaborersfromthebeginningwasnotasteadyflow; itwentupin2011-2012andfluctuatedin2013-
- 2015. Itspeakyearwas
- 2017. However, itfluctuatedagainin2020withthelowestnumberofmigrantlaborersduetotheriseofthe COVID-19pandemic. Table2showsthestatisticsofwomenmigrantsfrom Bangladesh. Itstartedwiththelowestnumberofwomenmigrantsin2011, anditincreasedslowlyafterwards. Itspeakpointwas2016-2017; however, in2020, itdroppedlowerthanthestartingpointbecauseofthe COVID-19pandemic(Ansar,2022\. Duringthesameperiod, Bangladeshhasalsoreceivedarecordnumberofreturneemigrantsowingtojobloss, arbitrarydismissal, andforceddeportation. Accordingtothe Bangladesh Ministryof Expatriate Welfareand Overseas Employment, atotalof408,000migrantworkersreturnedtothecountryin
- 2020. Thus, around2000migrantworkersreturnedto Bangladeshdailysincethepandemic'sbeginning. Overviewof Foreign Aidto Bangladesh Bangladesh, asadevelopingcountry, maintainsextensivemultilateralandbilateralrelationshipswithdonorgovernmentsandinternationalfinancialinstitutions. Sincegainingindependencein1971, thenationhasbeenaconsistentrecipientofforeignaidandremainssubstantiallyreliantonexternalassistanceacharacteristicitshareswithmanydevelopingeconomies(Sen, Islametal.,2019\. Thesediplomaticanddevelopmentalpartnershipshavefacilitatedsignificantinflowsofdevelopmentassistancefromdevelopednations, directedtowardfosteringsocialandeconomicgrowth. Theimpactofforeignaidon Bangladesh'sdevelopmenttrajectoryissubstantialandmultifaceted. Aidhasfinancedextensiveinfrastructuredevelopmentandsectoralprojectsacrossagriculture, livestock, fisheries, education, health, watersupply, finance, transport, andsocioeconomicinfrastructure, inadditiontosupportinginstitutionalcapacitybuildingandtrainingprogrammes. Hossain(2014\documentsthat Bangladeshreceivedapproximately US$56.5billioninforeignaidfromdonorcountriesduringthe19712012period, resourcesthatunderpinnedconsiderableinfrastructureexpansionandsocialservicedeliverytothe Bangladeshipopulation. Challengesand Adverse Impactsin Bangladesh Notwithstandingthesedevelopmentalcontributions, foreignaidto Bangladeshhasbeenaccompaniedbysignificantchallenges, resistance, andunintendednegativeconsequences. The COVID-19pandemic, forinstance, precipitatedsubstantialdisruptionstoaid-fundedprojectsandactivities. Ansar(2022\highlightstheseverecontractioninwomen'soverseasemploymentasanillustrativecase: thenumberoffemalemigrantworkersfrom Bangladeshplummetedfrom104,786in2019tojust21,934in2020-adeclineofapproximately79percent. Thisdramaticreductionnotonlydiminishedremittanceflowsbutalsoexposedthevulnerabilityofaid-dependentdevelopmentstrategiestoexogenousshocks. Comparative Analysis: The Pacific Region Theexperiencesof Bangladeshfindstrongresonanceinthe Pacificregion, wheresmallislandstates-including Samoa, Papua New Guinea(PNG\, and Fiji-havelikewisereceivedsubstantialdevelopmentassistancefromdevelopednationstoadvancesocialandeconomicinfrastructure. Papua New Guinea: Hnanguie(2003\observesthattherelativelylargevolumeofforeignaidflowinginto PNGsince1975hascontributedmeasurablytonationaldevelopment. Sectoralgainsparallelthoseobservedin Bangladesh, encompassingagriculture, livestock, fisheries, education, health, watersupply, finance, transport, socioeconomicinfrastructure, andinstitutionalcapacitybuilding. Samoa: Mata'afa-Tufele(2021\reportsthatforeignaidto Samoahasstimulatedeconomicgrowth, strengthenedcriticaleconomicinfrastructureresilience, andimprovedtheregulatoryenvironmentforbusinessandinternationaltrade-reformsexplicitlydesignedtosupportandsustaineconomicexpansion. Fiji: Nailatikau(2022\similarlyemphasisesthatforeignaidhassupported Fiji'ssocialandeconomicdevelopment, withfinancialassistancedirectedtowardincome-generatingactivities, povertyreductioninitiatives, andinstitutionalcapacitybuilding. Divergent Outcomesandthe Questionof Effectiveness Theeffectivenessofforeignaidacrossthesecontextsremainscontested. As Brown(2021\notes, evaluativeconclusionsdependfundamentallyuponthecriteriaapplied. Asaresourcetransfermechanismandprojectfinancinginstrument, aidhasregisteredmeasurablesuccesses. However, whenassessedagainstbroaderdevelopmentalbenchmarks, therecordisdecidedlymixed. Governanceand Administrative Weaknesses Allthree Pacific Islandnations, like Bangladesh, haveencounteredpersistentchallengesinsecuringandimplementingaid. Theseincludegovernmentalmishandlingofaidfunds, programmemanagementdeficiencies, andworkforceskilldeficitsthatconstraincapacitytomanageandexecutelarge-scaleinfrastructureprojects. Ligaiula(2022\identifiessystemicweaknessesin Fiji'saidadministration: poorprojectselection, ineffectiveimplementation, laxmonitoringofprogress, andinadequateevaluationprotocols. Morecritically, Salem(2020\documentsinstanceswhere Fijiangovernmentleadersengagedinstrategicmanipulationofdonorcompetition-playingonedonoragainstanother-tocaptureaidresourcesforpersonalbenefitratherthandevelopmentalpurposes. Project Failure Rates Theempiricalrecordfrom PNGisparticularlysobering. Hnanguie(2003\reportsthatof16 Asian Development Bank-assistedprojectsevaluated, onlyfivewereratedasgenerallysuccessful. World Bankprojectperformancesimilarlydeterioratedovertime: projectscompletedbetween1968and1978registeredafailurerateof22percent, whichescalatedto60percentforprojectscompletedafter
- 1978. International Journalof Multidisciplinary Researchand Growth Evaluationwww. allmultidisciplinaryjournal. com977|Page Thispatternofdecliningaideffectivenesscorrespondscloselywithgovernancedeteriorationandeconomicmismanagementdocumentedin Bangladeshandelsewhere. Economic Distortions Samoaexemplifiestheparadoxicaleconomicconsequencesofaidinflows. Mata'afa-Tufele(2021\explainsthatincreasedimportcapacity-fueledbyaid-financedpurchasingpower-hasinflatedlocalpricesforgoodsandservices. Asdemandpressuresexceeddomesticsupplycapacity, pricesrisedisproportionately. Smallenterprisesoperatingatdiseconomiesofscalestruggletoremaincompetitiveinthisenvironment, whilelargerfirmscapableofachievingeconomiesofscalecapturedisproportionatebenefits. Thisdynamicillustratesthedistributionalinequitiesthataidcaninadvertentlygenerate. Convergent Patterns Across Contexts Table1: Thecomparativeanalysisrevealsseveralconvergentpatternsbetween Bangladeshandthe Pacific Island Countries Dimension Bangladesh Pacific Island Countries Sectoralachievements Agriculture, health, education, infrastructure, andcapacitybuilding Agriculture, health, education, infrastructure, andcapacitybuilding Governancechallenges Corruption, weakimplementation, andpoliticalinterference Corruption, weakprojectselection, inadequatemonitoring, andpoliticalmanipulation Economicdistortions Inflation, dependency, andprojectdelays Dutchdiseaseeffects(Fiji\localpriceinflation(Samoa\anddebtburdens Exogenousshocks COVID-19disruptiontomigrationandremittances Climatevulnerability, globaleconomicvolatility Donorpractices Conditionalities, tiedaid, andexpatriatereliance Parallelstructures, limitedlocalownership, andexpatriatetechnicaladvisers Discussion The Paradoxof Development Assistance Thisinterpretiveanalysisexaminesthecomplexandoftencontradictoryroleofforeignaidin Bangladesh'sdevelopmenttrajectory, drawingcomparativeinsightsfrom Pacific Islandnations. Theresearchcasestudiespresentafundamentalparadox: despitedecadesofsubstantialdevelopmentassistanceandmeasurableimprovementsincertainsocialindicators, theoveralleffectivenessofforeignaidremainsdeeplycontested. Thisdiscussioninterpretsthesefindingsthroughmultipleanalyticallenses-politicaleconomy, institutionaltheory, andpost-developmentperspectives-tounderstandwhyaidoutcomesdivergesosignificantlyfromintendedobjectives. Theresearch'sattentiontolabourmigrationintroducesanalternativeconceptualizationofforeignassistance. Unlikeofficialdevelopmentassistance, whichischannelledthroughgovernmentsandinternationalinstitutions. Ashighlightedby Ahmed, Islam&Moniruzzaman(2025\, remittancesrepresentdirecttransfersfrommigrantworkerstotheirfamilies. Thisformofassistanceoperatesthroughdifferentmechanisms, withdistinctimplicationsforpovertyalleviationandhouseholdwelfare. Traditionalversus Radical Interpretations Theresearchestablishesadialecticaltensionbetweentraditionalandradicalviewsofforeignaid. Thetraditionalperspective, groundedinneoclassicaleconomictheory, positsthatforeigncapitaladdressessavings-investmentgaps, facilitatestechnologytransfer, andsuppliesmanagerialexpertiseunavailabledomestically. Thisinterpretationtreatsdevelopingcountriesascapital-deficientsystemsinwhichexternalresourcescanbehelpful. Bangladesh'searlydevelopmentplanningexplicitlyembracedthislogic, withforeignaidpositionedascomplementarytodomesticresources(Husain,2018\. However, theempiricalevidenceresistssuchastraightforwardinterpretation. Theradicalanti-aidviewchallengesthismechanisticunderstanding, suggestingthataid'snegativeconsequences-inappropriatetechnologyadoption, distortedincomedistribution, andentrenchedcorruption-arenotmerelyimplementationfailuresbutsystematicoutcomesofaiddependencyitself. Thisperspectiveresonateswithdependencytheory, whicharguesthatexternalresourceflowsreproduceratherthanresolveunderdevelopmentbyintegratingrecipienteconomiesintoglobalhierarchiesonunfavourableterms. The Implementation Gap Acriticalinterpretivelensrevealsthataideffectivenessisfundamentallyaninstitutionalquestion. Theresearchdocumentssystematicweaknessesacrossboth Bangladeshand Pacific Islandcontexts: poorprojectselection, ineffectiveimplementation, laxmonitoring, andinadequateevaluationprotocols. Thesearenotrandomfailuresbutpatternedoutcomesreflectinginstitutionalcapacityconstraints, governancedeficits, andthemisalignmentbetweendonorrequirementsandrecipientrealities. The World Bank'sprojectfailureratein PNG, escalatingfrom22%(1968-1978\to60%(post-1978\alongsidegovernancedeterioration, powerfullyillustratesthisinstitutionalmediation. Aiddoesnotoperateinavacuumbutflowsthroughexistinginstitutionalarchitecturesthatshapeitsdeploymentandimpactasreaffirmedby Ullah, Ibrahim&Islam,
- 2025. Whereinstitutionsareweak, captured, ormisalignedwithdevelopmentalobjectives, evenwell-designedaidprogrammesunderperform. The Samoacase-whereaid-financedimportcapacityinflateslocalprices, disadvantagingsmallenterprises-illustratestheeconomicdistortionsthataccompanyresourceinflows. Thisphenomenon, analogousto Dutchdiseaseinresource-richeconomies, occurswhenexternalinflows(Delamou,2025\appreciaterealexchangeratesorinflatenon-tradedgoodsprices, underminingthecompetitivenessofdomesticproducers(Behzadan&Chisik,2024; Nguyen Phuc, Nguyen Vietetal,2024\Interpretingthisdynamicrequiresattentiontothestructuraltransformationthataidismeanttoenableversusthetransformationsitactuallyproduces. Ratherthancatalysingproductivediversification, aidmayinadvertentlyreinforce International Journalof Multidisciplinary Researchand Growth Evaluationwww. allmultidisciplinaryjournal. com978|Pagedependenceonimportsandexternalfinancing, creatingeconomiesstructuredaroundaidreceiptratherthanproductivetransformation. Principal-Agent Problemin Aid Relationships Interpretingthesepatternsthroughprincipal-agenttheoryilluminatesthestructuraltensionsinherentinaidrelationships. Donors(principals\delegateimplementationtorecipientgovernments, NGOs, andotheractors(agents\whoseinterestsmaydivergefromdonorobjectives. Accordingto Abate(2022\, informationasymmetries, monitoringdifficulties, andcompetingaccountabilitystructurescreatespacesforslippagebetweenintentandoutcome. Theresearchidentifiesmultiplemanifestationsofthisprincipal-agentproblem: governmentalmishandlingofaidfunds, programmemanagementdeficiencies, andthedocumentedinstanceof Fijianleadersmanipulatingdonorcompetitionforpersonalbenefit(Salem,2020\. Thesebehavioursarenotmerelyindividualmalfeasancebutrationalresponsestoincentivestructuresthatrewardaidcaptureoverdevelopmentaloutcomes. Aid, Sovereignty, and Conditionality Theresearchimplicitlyraisesquestionsabouttherelationshipbetweenaidreceiptandnationalsovereignty. Thereferencetohiddenagendasandstringattachmentssuggeststhataidrelationshipsembodypowerasymmetriesthatconstrainrecipientpolicyautonomy. Bangladesh, likeotheraid-dependentnations, mustnavigateconditionalitiesthatmaynotalignwithdomesticprioritiesordevelopmentalphilosophiesashighlightedby Uddin(2024\. Thisdynamicisparticularlysalientinthe Pacificcontext, wheresmallislandstatesfacepronouncedpowerimbalancesinnegotiationswithlargerdonors. Theexpatriatetechnicaladvisersandparallelimplementationstructuresdocumentedacrosscasesrepresentnotmerelytechnicalassistancebuttheinstitutionalizationofexternalcontroloverdevelopmentprocesses. Corruptionas Systemic Theresearchidentifiescorruptionasapersistentchallengeacrossallcasesexamined. However, aninterpretiveanalysissuggestsunderstandingcorruptionnotasanindividualmoralfailingbutasasystemicoutcomeofaidrelationshipsthemselves. Whenaidflowsexceedinstitutionalabsorptivecapacity, whenaccountabilitymechanismsareexternallyimposedratherthanlocallyowned, andwhenaidcreatesrent-seekingopportunitieswithoutcorrespondinginstitutionalconstraints, corruptionbecomespredictableratherthanexceptional. Hossain(2021\statedthat Bangladesh'sexperienceofforeignaidcorruptionscomeintoplayexemplifieshowaidcaninadvertentlystrengthenextractiveratherthanproductivestate-societyrelations. Thisinterpretationalignswithpoliticaleconomyanalysessuggestingthataiddependencemayunderminethedevelopmentofdomesticaccountabilityrelationshipsbetweencitizensandstates. Convergent Patterns, Divergent Contexts Thecomparativeanalysisrevealsstrikingparallelsbetween Bangladeshand Pacific Islandnationsdespitevastlydifferentgeographic, cultural, andhistoricalcontexts. Highlightedby Roborgh, Banksetal(2025\thatbothexperiencesectoralachievementsalongsidegovernancechallenges, economicdistortionsalongsideinfrastructuredevelopment, andvulnerabilitytoshocksalongsideresilienceincertaindomains. Thisconvergencesuggeststhataideffectivenesspatternstranscendspecificnationalcharacteristics, reflectingstructuralfeaturesofaidrelationshipsthemselves. Whereinstitutionalcapacityisweak, whereaccountabilityrunsupwardtodonorsratherthandownwardtocitizens, andwhereaidcreateseconomicdistortionsthrough Dutchdiseaseorinflation, similarproblemsemergeregardlessofcontext. Beyond Binary Assessments Thisinterpretiveanalysissuggestsmovingbeyondbinaryassessmentsofaidaseithereffectiveorineffective, beneficialorharmful. The Bangladeshcasedemonstratesthataidcansimultaneouslyachievesectoralsuccesseswhilegeneratingsystemicdistortions, improvesocialindicatorswhileundermininginstitutionaldevelopment, andenablepovertyreductionwhilecreatingnewvulnerabilities. Thissimultaneitydemandsanalyticalframeworkscapableofholdingcontradiction. Ratherthanaskingwhetheraidworks, wemightask: Underwhatconditions, throughwhatmechanisms, andforwhomdoesaidproduceparticularoutcomes?Howdoaidrelationshipsinteractwithexistinginstitutionalconfigurations, politicalsettlements, andsocialstructurestogeneratedivergenteffectsacrosssectorsandpopulations?Conclusion Thisinterpretiveanalysisyieldsseveralimplicationsfordevelopmentpolicyandpractice. First, institutionalstrengtheningmustprecedeoraccompanyresourcetransfers; aidcannotsubstitutefordomesticcapacitybutmustbuildit. Second, accountabilitymechanismsshouldruninmultipledirections-todonorsandcitizens, andhorizontallyamongimplementingactors-ratherthanprivilegingaccountabilitytofunders. Third, aidrelationshipsshouldbestructuredtoenhanceratherthanunderminerecipientautonomy, recognizingthatsovereigntyisnotmerelyanormativeprinciplebutadevelopmentalprerequisite. Finally, thevulnerabilitiesexposedbythepandemicsuggesttheneedfordevelopmentmodelsthatbuildresilienceratherthandependence. Thismeansdiversifyingexternalengagements, strengtheningdomesticproductivecapacity, andensuringthatintegrationintoglobalsystemsdoesnotforeclosealternativedevelopmentpathways. For Bangladesh, for Pacific Islandnations, andforaidrecipientseverywhere, thechallengeisnottoacceptorrejectaidbuttotransformtherelationshipsthroughwhichitflows. References
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