AID WITH CONDITIONS

Receiving aid can sometime be discomforting when it comes with some conditions. Most NGOs and other projects with foreign aid active in Bangladesh are using latest model SUVs and full furnished offices. I have heard that the AID comes with the condition that all materials purchased would be from the originating countries. E.g. ignoring that clause, if an NGO choose to buy a Tk. 1 million Maruti SUV (including duties) instead of Tk. 5 Million Range Rover SUV (including duties) at market price then that would have saved Tk. 4 Million and would buy school books for 4000 students in a year. I am not mentioning here the high perquisites and remunerations of the NGO workers and consultants.

So you see many aid initiative detours its course in the process of implementation.

Bangladesh govt. is in a fix over payment of a Tk 310 million fine sentenced by a court in The Hague for canceling a contract with a Dutch company for supplying computers.
In December 2000, the Netherlands government had agreed to provide about Tk. 499.5 million as grant for introducing computer courses at secondary and higher secondary levels in 3,382 educational institutions under a project. The Dutch government selected Amsterdam-based Tulip Computers as the project implementation agency. But the Bangladesh Cabinet Purchase Committee on December 20, 2000 canceled the procurement initiative, finding the price offer to be 'inflated and unsolicited' as the revised unit price of Tk 70,000 (initial attempt for Tk. 99,000) for the computers were way above the market price (almost half of that).

Following the suspension of the project, Tulip Computers lodged complaint with a Dutch court accusing Bangladesh government of breaching an international contract. Bangladesh could not even contest in the case due to time constraint. Read more here.

I believe the third world countries would do better without those aids with conditions.