Can Bangladesh do

without Foreign Aid?

Fahmida Khatun
Executive Director
Centre for Policy Dialogue (CPD)
8 November 2018
Acknowledgement

• This study has been carried out by Dr Fahmida Khatun, Executive

Director, CPD; Mr Syed Yusuf Saadat, Research Associate, CPD and Mr
Md Kamruzzaman, Research Associate, CPD;
• Research assistance has been provided by Ms Shamila Neemat
Sarwar, Programme Associate, CPD and Mr Fahmid Chowdhury,
Intern, CPD.
• The study team would like to express their sincere gratitude to Dr
Debapriya Bhattacharya, Distinguished Fellow, CPD; Professor
Mustafizur Rahman, Distinguished Fellow, CPD; Dr Khondaker Golam
Moazzem, Research Director, CPD and Mr Towfiqul Islam Khan, Senior
Research Fellow, CPD for their valuable comments.

2
Contents

1. Background
2. Objectives of the study
3. Methodology of the study
4. Overview of Aid Dynamics in Bangladesh: Recent Trends
5. Evaluation of Effectiveness for Foreign Aid
6. Macro Level Analysis: Contribution of Foreign Aid to Growth
7. Micro Level Analysis: Contribution of ODA to Health
Outcomes
8. Summary of Findings: Macro and Micro Level Analyses
9. Challenges of Aid Utilisation in Bangladesh
10. Recommendations

3
1. Background
1. Background

• Bangladesh is passing through the period of double graduation. In 2015, the country has
achieved the status of Lower Middle Income Economy (LMIE) by increasing its per capita
income. In March 2018, it has entered into the process of graduating from a Least Developed
Country (LDC) to a developing country by 2024 (UNCTAD, 2017) by fulfilling all three
criteria to be eligible for graduation - per capita income, human assets, and economic
vulnerability.
• However, Bangladesh needs to deal with several challenges as it moves forward to make its
growth sustainable. One such challenge will be mobilisation of finance for development
(FfD) from external sources.
• Once graduated, terms of official development assistance (ODA) (foreign aid) will change
and external resources will be costly as the grant element mat not be widely available. This
may potentially put pressure on debt servicing.
• Though the share of ODA, as percentage of GDP has declined to 1.47 percent in FY2016-17,
compared to 3.07 percent in FY1996-97, the need for ODA in development activities of
Bangladesh is still significant.
• The need for ODA will be felt more as the government of Bangladesh (GoB) is committed to
implement the Sustainable Development Goals(SDGs).
• Thus, raising the efficacy of aid utilization will become more important in the coming days.

5
1. Background

• While there is a higher demand for more resources from

the international sources, a paradoxical situation is
observed. A large amount of foreign aid remains in the
pipeline indicating that new funds do not necessarily
guarantee their timely and full utilisation. This has
implications for development initiatives.
• The challenges related to foreign aid regime in
Bangladesh are twofold: (i) efficient disbursement, and
(ii) efficient utilisation.
• This emphasizes the need for improving the governance
of aid utilisation.

6
2. Objectives of the Study
2. Objectives of the study

Evaluate the effectiveness of ODA

Assess the contribution of foreign aid at macro and

micro levels

8
3. Methodology of the Study
3. Methodology of the Study

Survey of Secondary research Empirical

literature to analysis to
draw understand the
narratives on effectiveness of
foreign aid foreign aid at
effectiveness macro and
micro levels

Interview of knowledgeable
informants to solicit their
views on how aid utilisation
can be made effective
10
4. Overview of Aid Dynamics in Bangladesh:
Recent Trends
 4. Overview of aid dynamics in Bangladesh:
Historical trend of aid

Share of ODA in the Figure 1: Share of ODA

economy is declining
20

18

• Though the volume of ODA 16

is increasing, ODA as a 14

share of GDP has been 12

declining steadily

Percentage, %
10

• This indicates that the 8

country’s dependence on 6
ODA has also declined 4

• In contrast, exports and 2

remittances (as % of GDP) 0

have increased FY 1981 FY 1991 FY 2001 FY 2011 FY 2016 FY 2017

significantly since the Export (as % of GDP) Remittance (as % of GDP)

ODA (as % of GDP) FDI (as % of GDP)
1980s Source: Economic Relations Division (ERD), Ministry of Finance, Government of Bangladesh.

12
 4. Overview of aid dynamics in Bangladesh:
Composition

Project aid comprises of 4000

Figure 2: Food, Commodity, and Project Aid
100

100% of total aid. 3500

90

80
3000
• Project aid as a share of 70

total aid has been 2500

Percentage, %
60

Million USD
increasing since FY99 2000 50

• Commodity aid as a share of

40
1500

total aid has been close to 1000

30

zero since FY04 20

500
10
• Food aid as a share of total 0 0
aid has been decreasing
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
since FY06
Total Aid Food Aid as % of Total Aid
Commodity Aid as % of Total Aid Project Aid as % of Total Aid

Source: Economic Relations Division (ERD), Ministry of Finance, Government of Bangladesh.

13
 4. Overview of aid dynamics in Bangladesh:
Bilateral and multilateral aid

Gap between bilateral Figure 3: Bilateral and Multilateral Aid Disbursement (USD Million)

and multilateral aid 4000 100.0

90.0
3500
80.0

• Bilateral aid as a share of 3000

70.0

total aid has been 2500

Percentage, %
60.0

Million USD
decreasing since FY04 2000 50.0

• Multilateral aid as a share of 1500

40.0

total aid has been 1000

30.0

increasing since FY04 500

20.0

10.0
• Gap between the two closed 0 0.0
down in FY14, but has been
1980-81
1990-91
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
increasing since then
Total Bilateral
Total Multilateral
Total Aid
Source: Economic Relations Division (ERD), Ministry of Finance, Government of Bangladesh.

14
 4. Overview of aid dynamics in Bangladesh: Aid
disbursement in selected sectors

Aid disbursement in Figure 4: Aid Disbursement in selected Sectors (% of Total ODA)

infrastructure 30

overtakes that of social 25

sectors

PERCENTAGE, %
20

• Aid disbursement in power 15

sector rose sharply since
FY10 10

• Aid disbursement in 5
transport sector exceeded 0
that of education in FY17 1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
• Aid disbursement in
agriculture has been Agriculture (% of ODA)
hovering at around 5% Health, Population & Family Welfare (% of ODA)
Power (% of ODA)
Source: Economic Relations Division (ERD), Ministry of Finance, Government of Bangladesh.

15
 4. Overview of aid dynamics in Bangladesh: Utilisation
of project aid and Taka Allocation

Gap in utilisation Figure 5: ADP Utilisation (in %)

between Taka allocation 120

and project aid 100

allocation in ADP
80

• Utilisation of Taka

Percentage
60
allocation of ADP shows
increasing trend since FY08 40

• Utilisation of project aid 20

allocation has been below
80% from FY06 onwards 0
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
Total ADP Utilisation (in %) Project Aid ADP Utilisation (in %)
Taka ADP Utilisation (in %)

Source: Economic Relations Division (ERD), Ministry of Finance, Government of Bangladesh.

16
5. Evaluation of Effectiveness
of Foreign Aid
5. Evaluation of effectiveness of ODA: Methodology

Assessing aid effectiveness by looking at:

• ODA funds trajectory – additionality, predictability, grants vs

loans
• Ownership – relevance to domestic policies, national level
coordination, sustainability
• Alignment - with partners’ development strategies, use of
country system, untied aid, demand-supply gap
• Donor coordination
• Absorptive capacity
• Macro level contribution: economic growth
• Micro level contribution: ODA funds for the health sector

18
5. Evaluation of effectiveness of ODA: ODA Fund
Trajectory

ODA Fund Trajectory

• Additionality: Whether volume and growth of ODA are

increasing or not

• Predictability: Commitment vs. disbursement of ODA

• Grants vs. loans: Changes in composition of grant and

loan components over time

19
 5.1 Additionality of aid

Aid shows declining Figure 6: ODA in Bangladesh as % of GDP and ADP (USD Million)
3.5 90.0
trends with respect to
GDP and ADP
80.0
3.0

70.0

• ODA as a share of ADP has 2.5

60.0
been decreasing since FY08

ODA as % of GDP

ODA as % of ADP
2.0 50.0
• ODA as a share of GDP has 40.0
been generally decreasing 1.5

since FY96 1.0

30.0

20.0

0.5
10.0

0.0 0.0
1997-98

2010-11
1995-96
1996-97

1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10

2011-12
2012-13
2013-14
2014-15
2015-16
ODA as % of GDP ODA as % of ADP

Source: Economic Relations Division (ERD), Ministry of Finance, Government of Bangladesh.

20
5.2 Predictability: Commitment and disbursement

Commitment- Figure 7: Aid Commitment and Disbursement

disbursement gap 20000
164.1
180

increasing 18000 160

16000
• Commitment spiked in 126.4
140

FY11 and increased 14000

112.8
107.7
120

drastically in FY17 12000

Million USD
93.6 94.2 100
89.2 87.7
10000
• Disbursements have been

Percentage, %
75.6
73.5
69.9 72.5 74.7
72.3 80
8000 66.7
increasing steadily since 58
53.7
57.9
52.8 50.6 60
FY11 6000 48.0
44.6
40
4000 29.8
• Unusually large difference 20.5
20
2000
between commitment and
disbursement in FY17, due 0 0
1980-81
1990-91
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
to high commitment and
low disbursement Disbursement as % of Commitment Commitment Disbursement

Source: Economic Relations Division (ERD), Ministry of Finance, Government of Bangladesh.

21
5.3 Grants vs loans: Changes in composition of
grant and loan components over time

Loans increasing amidst Figure 8: Grants and Loans Disbursement (USD Million)

dwindling grants
4000 100

90
3500
80
• In FY97, loans and grants were 3000
70
almost equally divided as 2500

Percentage, %
shares of total aid 60

Million USD
2000 50
• Since then, grants as a share of
40
total aid have been declining, 1500

while loans as a share of total 1000

30

aid have been rising 20

500
• In FY17, loans were 87.5% of 10

total aid, whereas grants were 0 0

1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
only 12.5%

% of Grant in Total Aid % of Loan in Total Aid

Source: Economic Relations Division (ERD), Ministry of Finance, Government of Bangladesh.

22
5.4 External Debt to GDP ratio

External Debt as a External Debt as a Percentage of GDP

percentage of GDP is 300000 40

declining 250000
35

30

• External debt as a 200000

Percentage, %
25

percentage of GDP has been

Million USD
declining from FY01 to 150000 20

FY17, with the exception of 15

FY02
100000

10

• It reached its lowest point 50000

in FY17 (12.8%)
5

0 0

2004-05

2015-16
1999-00
2000-01
2001-02
2002-03
2003-04

2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15

2016-17
GDP External Debt External Debt as % of GDP
Source: Economic Relations Division (ERD), Ministry of Finance, Government of Bangladesh.
Note: (i) The base year for 2000-2012 is 1995-96; (ii) The base year for 2012-2017 is 2005-06.

23
5.4 Debt Servicing to GDP ratio

Debt servicing as a Debt Service as a Percentage of GDP

percentage of GDP is 1400.0 1.4

declining 1200.0 1.2

• Debt-servicing as a 1000.0 1.0

percentage of GDP has also

Percentage, %
Million USD
been declining consistently
800.0 0.8

since FY00, reaching its 600.0 0.6

lowest in FY17
400.0 0.4

200.0 0.2

0.0 0.0
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
Debt Service Debt service as % of GDP

Source: Economic Relations Division (ERD), Ministry of Finance, Government of Bangladesh.

24
5. 5 Summary: Evaluation of ODA in
Bangladesh

ODA exhibits Based on data and documents Stakeholders’ view

Additionality Mixed Mixed

Mixed. Change in the priority

of donor countries and
Mixed
Predictability delayed implementation of
projects are factors behind
unpredictability

Share of grant in ODA is declining fast and Infrastructure projects

Grants vs. Loans
the major part of aid comes as loans should be in grant form

Source: Authors’ elaboration

25
5. 5 Summary: Evaluation of ODA in Bangladesh
(contd.)

Based on data and

Indicator ODA exhibits Stakeholders’ view
documents
ODA funded projects have
Major ODA funded
Relevance to relevance to Bangladesh as it aims
Ownership projects meet many
domestic policies to achieve economic and social
national objectives
progress
However, national level
National level
There is an institutional coordination of projects is weak.
coordination and
mechanism for ODA The scope for involvement of
stakeholder
project coordination broader stakeholders besides the
involvement
government and donors is limited

GoB has exhibited the

capacity to shoulder a
Sustainability large share of the cost of Partial
donor supported
investment projects
Source: Authors

26
5. 5 Summary: Evaluation of ODA in Bangladesh
(contd.)

Based on data and

Indicator ODA exhibits Stakeholders’ view
documents
Alignment In the case of ODA, 100
Alignment with
percent of aid flows to
partners’ The flow of ODA in Bangladesh is
Bangladesh were aligned
development aligned with national priorities,
with national priorities by
strategies
2010
GoB officials believe that the capacity
Use of country building support by donors is now
Some improvement
system better coordinated and consistent with
national and sectoral priorities
Some improvement in terms
Donors continue to impose too many
Untied aid of aid being untied (in cases
conditions
of traditional sources)
Resource gap for health,
education, gender ODA projects should be more demand
Demand-supply empowerment, climate driven There is also need for more
gap change and infrastructure donor support for improving physical
are huge compared to the infrastructure
flow of aid
Source: Authors

27
5. 5 Summary: Evaluation of ODA in Bangladesh
(contd.)

Based on data and

Indicators ODA exhibits Stakeholders’ view
documents

Some improvement in the area of

Coordination among
donor coordination. Donors also
Donor donors has improved
Donor prefer to coordinate various
coordination through local consultative
coordination activities among themselves, but
groups and joint
sometimes bypassing the
cooperation strategy
government
Low absorption capacity Lack of efficient administrative
Absorptive due to lower mechanism, low human capacity,
Absorptive
capacity implementation of foreign political instability and stringent
capacity
aid funded development donor requirements are major
projects reasons for low absorption capacity

Source: Authors

28
 6. Macro Level Analysis:
Contribution of ODA to Growth
6.1 Variables

Variable Definition
GDP per capita Annual percentage growth rate of GDP per capita based constant 2010 U.S. dollars.
Investment Annual growth rate of gross capital formation based on constant 2010 U.S. dollars.
Labour Growth rate of labour force (people ages 15 and older who supply labour for the
production of goods and services during a specified period)
Aid Net official development assistance received as a percentage of Gross National Income
Aid squared Squared aid term
Broad money supply Broad money supply as a percentage of GDP
Policy index Policy index (composed of inflation, govcons, and trade)
Institutional quality Institutional quality index (composed on coc, ge, ps, rq, va, and rol)
index
Inflation Logarithm of inflation rate plus one
Government Government consumption relative to GDP
consumption
Trade Exports plus imports relative to GDP
Control over corruption Control over corruption index
Government Government effectiveness index
effectiveness
Political stability Political stability index
Regulatory quality Regulatory quality index
Voice and accountability Voice and accountability index
Rule of law Rule of law index
Source: Author’s compilation based on data from World Development Indicators and Worldwide Governance Indicators

30
6.2 Index constructions

Policy index Institutional quality index

Step 1: Step 1:
• Regress GDP per capita on • Regress GDP per capita on
inflation, government control over corruption,
consumption, and trade government effectiveness,
Step 2: political stability, regulatory
quality, voice and accountability,
• Use the estimated coefficients as and rule of law
weights to make a composite
policy index Step 2:
• Use the estimated coefficients as
weights to make a composite
institutional quality index

31
 6.3 Results from Granger causality test

Aid does not Granger Model

Null Hypothesis
Log-Linear(i)
F Statistic
Log-Log(ii)
F Statistic
cause growth (Probability) (Probability)
Aid does not Granger Cause GDP per 0.55255 0.58541
capita (0.5875) (0.5699)
• the probability of the null Aid squared does not Granger Cause 0.50202 0.58541
hypothesis that ‘aid does GDP per capita (0.6158) (0.5699)
not Granger cause GDP per Source:
Note:
Author’s calculations
(i) GDP per capita is in natural logarithm, all other variables are in level; (ii) all
capita’ being true is 0.5875 variables are in natural logarithm; (iii) optimal lag length selection is based on the
Schwarz Information Criterion (SIC); (iv) probability values in
for the log-linear model and parentheses.

0.5699 for the log-log

model
• we cannot reject the null
hypothesis that ‘aid does
not Granger cause GDP per
capita’

32
 6.4 Results of model estimation

Aid is not a significant Model

Variable
Log-Linear(i)
GDP per capita
Log-Log(ii)
GDP per capita
determinant of Aid 1.036575 -42221.94
(1.000280) (44902.14)
economic growth for Aid squared -0.372411 21110.94
Bangladesh Investment
(0.338919)
0.003814
(22451.14)
0.044675
(0.011563) (0.203643)
• the coefficients for aid and aid Labour 0.270173** 0.847644**
squared are both statistically (0.086084) (0.278772)
insignificant Broad money supply 0.026765** 1.309213***
(0.007597) (0.230249)
• the coefficients for labour supply, Institutional quality 0.038833 0.476411
broad money supply, and the policy index (0.044616) (0.406648)
Policy index 0.307189* 0.403272*
index are positive and statistically (0.110836) (0.202937)
significant Constant 3.403410** -
(0.963096)
• the goodness of fit for the log- R squared 0.982052 0.886795
linear model is higher compared to Adjusted R squared 0.932697 0.773591
the log-log model

Source: Author’s calculations

Note: (i) Dependent variable is in natural logarithm, all other variables are in level and level trend specification assumed; (ii) all variables are in natural logarithm and no trend
specification assumed; (iii) aid and aid squared are cointegrating regressors; (iv) automatic lead and lag specification based on Akaike information criterion, Schwarz information
criterion, and Hannan–Quinn information criterion; (v) standard errors in parentheses; (vi) *, **and *** denote statistical significance at 1%, 5% and 10% levels respectively.
33
 7. Micro Level Analysis:
Contribution of ODA to Health Outcome
7.1 Sectoral aid as a share of sectoral
expenditure

Education project aid as Health project aid as share

share of total education of total health expenditure
FY expenditure (in %) (in %)
2005-06 24.1 41.8
2006-07 25.1 43.2
2007-08 13.7 31.9
2008-09 24.3 37.3
2009-10 11.1 19.7
2010-11 9.3 22.1
2011-12 11.6 29.0
2012-13 15.7 21.0
2013-14 10.3 20.6
2014-15 9.6 13.2
2015-16 9.3 12.8
2016-17 7.6 30.2
Source: Economic Relations Division (ERD), Ministry of Finance, Government of Bangladesh.

35
7.2 Variables

Variable Definition
Infant Mortality Rate Infant Mortality Rate (IMR) The number of deaths occurring during a given year among
the live-born infants who have not reached their first birthday, divided by the number of
live births in the given year and usually expressed per 1000 live births.
Under-Five Mortality Under-Five Mortality Rate (U5MR) The under-five mortality rate is defined as the number
Rate of deaths to children under five year of age per 1000 live births in a given year.
Child Death Rate Child Death Rate (ChDR) Child death rates is defined as the number of deaths among
children in age 1-4 per 1000 mid-year population in the same age group.
Project Aid in Health Disbursement of project aid in health sector (million USD)
Sector
Per Capita Health Aid Current external expenditures on health per capita expressed in international dollars at
purchasing power parity (PPP).
Per Capita Government Public expenditure on health from domestic sources per capita expressed in international
Health Expenditure dollars at purchasing power parity (PPP).
Per Capita Private Current private expenditures on health per capita expressed in international dollars at
Health Expenditure purchasing power parity (PPP).
Per Capita Out-of-pocket Health expenditure through out-of-pocket payments per capita in international dollars at
Health Expenditure purchasing power parity (PPP).
Source: Author’s compilation based on data from World Bank’s Health Nutrition and Population Statistics database and Sample Vital Registration Statistics of Bangladesh Bureau of Statistics (BBS).

36
 7.3 Results of model estimation

Health aid is a Model Log-Log(i) Log-Log(i) Log-Log(i)

significant Variable Infant Mortality
Rate
Under-Five
Mortality Rate
Child Death Rate

determinant of health Project Aid in Health -0.080906** -0.127899** -0.132605**

outcomes for Sector
Per Capita Health Aid
(0.005299)
-0.288816**
(0.010459)
-0.263639*
(0.039631)
-0.112739
Bangladesh. (0.019316) (0.038121) (0.085884)
Per Capita Government -0.134111* -0.377323** 0.060295
• the coefficients for project (0.012634) (0.024935) (0.084468)
Health Expenditure
aid in health sector and per Per Capita Private Health 1.521650 -7.105054* 6.870401
capita aid in health sector are Expenditure (0.374045) (0.738202) (3.457137)
both negative and Per Capita Out-of-pocket -1.601359 6.911961 -9.230460*
statistically significant Health Expenditure (0.393535) (0.776667) (3.523743)
• this implies that aid in the Constant 2.250152*** 3.059968*** 1.630999
health sector has a significant (0.011464) (0.022625) (0.145183)
Trend 0.129262**
impact in reducing infant
(0.027176)
mortality rate, under five
Trend squared -0.001063**
mortality rate and child (0.000309)
death rate R squared 0.999983 0.999957 0.997511
Adjusted R squared 0.999796 0.999489 0.993032

Source: Author’s calculations

Note: (i) All variables are in natural logarithm; (ii) project aid in health sector and per capita health aid are cointegrating regressors; (iii) automatic lead and lag specification based on
Akaike information criterion, Schwarz information criterion, and Hannan–Quinn information criterion; (iv) standard errors in parentheses; (v) *, **and *** denote statistical
significance at 1%, 5% and 10% levels respectively.

37
 8. Summary of findings:
Macro and Micro Level Analyses
8. Summary of findings: Macro and Micro Level Impact

Impact Based on data Stakeholders’ view

Impact of ODA on the growth is

No significant impact minimal because Bangladesh’s
Macro level
on economic growth dependency on ODA has
declined
Health sector projects
Micro level have benefitted from ODA in strategic areas is critical
ODA support
Source: Authors

39
9. Challenges of Aid Utilisation
in Bangladesh
9. Challenges of Aid Utilisation in Bangladesh

• During the period of the Millennium Development Goals

(MDGs), the GoB managed to receive external support to
implement the MDGs successfully. For example, compared to
2000, the flow of external resources increased by 1.9 times in
2015 (MoF, 2017a).
• However, aid is still not fully utilised in Bangladesh. According
to the Aid Management Unit (AMU) under the ERD, aid
effectiveness in Bangladesh is performing less than its
potential due to a number of interlinked and interdependent
structural, procedural and capacity problems (ERD, 2011).
• Major reasons for low ADP implementation include
institutional weakness, delayed implementation, and cost
overrun (CPD, 2010; 2018b).

41
9. Challenges of Aid Utilisation in Bangladesh (contd .)

• Procedural lapses of a project, incomplete proposal,

illogical expenditure target, and inadequate feasibility
study hinder implementation of ADP.
• Due to procedural delays in land acquisition and
procurement after approval, often projects cannot take-
off in a timely manner. By the time the project activity
start, spending the total allocation for the fiscal year
becomes difficult.
• In terms of ADP implementation, the following obstacles
were identified: (i) recruitment of project director and
acquisition of land; (ii); recruitment of consultant/firm;
(iii) preparation of work plan; (iv) recruitment of human
resources (IMED, 2017).
42
10. Recommendations
10. Recommendations

Improvements are needed in a number of areas:

• Project design, implementation and management

• Bureaucracy among donors and GoB
• Conditionalities
• Alignment
• Capacity development
• Country systems
• Monitoring and evaluation
• Transparency and accountability
44
Thank you

45