: Foreign Aid
The government is aware of the fact that because
of the existing international economic environment
the amount of foreign aid so essential for developing
countries like Bangladesh is fast dwindling. The
conditionalities of aid are also becoming stringent.
The government has, therefore, taken appropriate
initiatives for proper utilization of foreign aid.
The country's development partners at the same time,
ought to acknowledge that Bangladesh not only needs
more aid but also better aid.
The government has given the highest priority to
implementing with utmost efficiency the annual development
programme (ADP) which allocates domestic and foreign
resources to different sectors of the economy. From
the economic and social points of view, agriculture
is the country's most important sector as it contributes
32.4 percent of GDP and about 75 percent of its
120 million people are directly or indirectly dependent
on it for their livelihood. But because of declining
growth in agriculture in the past the standard of
life of the small and marginal farmers had been
going down forcing the nation to become increasingly
dependent on food imports.
The government has, therefore, decided to increase
allocation for agriculture substantially and offer
a wide range of incentives to the farmers including
liberal credit to raise production and generate
on-farm and off-farm employment for the rural poor.
An Agriculture Commission has also been set up to
recommend long-term policy reforms to boost the