By Just Faaland
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Extra info for Aid and Influence: The Case of Bangladesh
The implementation of the Plan was guided by annual plans and annual development programmes, in which specific aid requirements were estimated in detail. The simultaneous preparation of the domestic budget, the foreign exchange budget and the annual plan was designed to ensure that the estimate of foreign assistance needed was consistent with the projected balance of resources, including the savings gap. The annual development programme consisted of a list of projects on which expenditure would be incurred during the year.
In industry they were interested in the jute and textile industries, which had traditionally purchased capital equipment and machinery from the UK. The same was true of established power and communications installations. The Government of Japan sent a high powered mission to Bangladesh in 1974. It consisted of representatives of both the public and private sectors and had the task of exploring and selecting areas for economic assistance. The mission members' review was far-ranging and they identified a number of areas for Japanese economic assistance.
Production of jute in 1974-5 28 Aid and Influence: The Case of Bangladesh was only one-half of that in 1969-70 and has remained well below the pre-war level. The low returns from it in terms of importing capacity, continues to impede the development of the economy. Industrial activity, affected by the shortage of imports, damage, destruction and industrial unrest had on average regained pre-war levels by 1973-4 although output was rather differently constituted from formerly. Nevertheless mere recovery was quite insufficient to add impetus to development or to provide the basis for the kind of structural change that was needed to ease the balance of payments problem; industry, largeand small-scale, accounts for only 10 per cent of output in Bangladesh and its contribution to growth is correspondingly confined.
Aid and Influence: The Case of Bangladesh by Just Faaland