Aid and Governance in Vulnerable States: Bangladesh and Pakistan Since 1971

Mushtaq H. Khan

No wp-2013-122, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Bangladesh and Pakistan had very divergent experiences with aid after 1971. Politics in Pakistan was less inclusive in terms of opportunities for intermediate class political entrepreneurs. In this context, the significant role of military aid to Pakistan had very negative effects on its political and economic evolution. In contrast in Bangladesh the less centralized organization of political power and less concentrated forms of aid allowed intermediate class political entrepreneurs to access resources and created incentives for productive activities.

Keywords: Economic assistance and foreign aid; Informal sector (search for similar items in EconPapers)
Date: 2013
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