BANGLADESH INSTITUTE OF INTERNATIONAL AND STRATEGIC STUDIES

CONDITIONAL AID AND GOOD GOVERNANCE : EXPLORING THE LINKAGES

Author: Mohammad Jasim Uddin & Laila Ashrafun Joya

DOI Link: DOI: https://www.doi.org/10.56888/BIISSj2005v26n1a2

ABSTRACT

Foreign aid has played an important role in world development since the 1940s. The prime argument in support of foreign aid is that it can eliminate poverty of the recipient countries by fostering development. However the debate persists as to whether aid which almost inevitably is tinged with conditionality actually promotes development. Since 1980s a new conditionality of the aid package has been attainment of good governance. The main objective of this paper is to analyze whether conditional aid brings good governance or not. The findings based on cross-country evidence lend to suggest that conditional aid did not have expected impact on good governance.