Rotting From the Head: Donors and LDC Corruption

Rotting From the Head: Donors and LDC Corruption

Author
Salim Rashid
Publisher
University Press
Language
English
Year
2004
ISBN
9789840517015,9840517015
File Type
pdf
File Size
32.7 MiB

This book asks whether the corruption prevalent is not often deliberately caused by the donor agencies themselves. Civil society and aid agencies have persistently and widely trumpeted rampant corruption within the bureaucracy and political bodies in the Third World as the primary obstacle to sustainable development but the central role of donors in this matter has not carefully analysed. This issue is thus a radically new addition to the literature on development. The essays introduce the general problem of corruption and development in the role of the aid agencies. They examine the impact of the donors----- IMF, the World Bank and USAID --- on the LDC’s though institutional and statistical analysis. It is the apparent ineffectual and even counterproductive nature of development aid that leads us to ask whether the source of the problem could not be the aid agencies themselves. This hypothesis of donor culpability is then examined at length in a case study of Bangladesh involving UNDP’s largest project for sustainable environmental management. The World Bank too was a moving party in this project. Using primary documents that have been submitted and used in judicial proceedings in the High Court, it is shown that multilateral aid agencies are frequently and actively complicit in furthering LDC corruption and misgovernance. It is thus ironic that the very same agencies that insist upon accountability and transparency in LDC government’s finances and management have zealously closed their own books from public scrutiny. Is this not a perpetual source of temptation to the self-governing elites who run the multilateral donor agencies? And since the donors work so closely with the upper echelons of all LDC bureaucracies, politicians, whether this is not a primary cause of the systemic corruption in LDC’s.

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