BANGLADESH Evaluation of the Netherlands Development Programme with Bangladesh, 1972–1996 Policy and Operations Evaluation Department, Ministry of Foreign Affairs ISBN 90-5328-162-2 Cover illustration: Associated Press Photographs: Ron Giling / LINEAIR Maps and figures: Geografiek, Amsterdam Editing: Ms J.W. Sanders Pre-press services: Transcripta, Beerzerveld Printed by: Ridderprint BV, Ridderkerk Preface This report presents the findings of the evaluation of the Netherlands bilateral development cooperation with Bangladesh. The main objective of the study was to assess the policy relevance, effectiveness, efficiency and sustainability of the bilateral aid programme for Bangladesh. The study covered some 25 years of development assistance to Bangladesh, i.e. since its Independence in 1971. In this period, a total of Dfl. 2.65 billion has been disbursed to programme and project aid made available through the regular bilateral programme, as well as to aid channelled through co-financing agencies to NGOs. Project aid has been grouped into five sectoral clusters: agriculture, industry, transport, water management and social services, the latter comprising health, education, and drinking water and sanitation. A description of non-aid relations between the Netherlands and Bangladesh is also included in this report. IOB has aimed at the maximum involvement of Bangladeshi aid authorities in the various stages of the evaluation. The report comprises three volumes. Volume I contains the Summary, Conclusions and Main Findings, and a reaction to the evaluation by the Bangladeshi aid authorities. Volume II constitutes the main report, whilst Volume III contains a detailed description of the evaluation of Netherlands-funded NGOs in Bangladesh on the basis of 15 case studies. In general it can be concluded that a major part of Netherlands’ aid to Bangladesh has contributed to the economic and social development of that country. Activities aimed at social and institutional change were generally less effective; the reasons for that are identified in this study. IOB constitutes an independent unit within the Ministry of Foreign Affairs, responsible for evaluating the Ministry’s policies and operations. A more detailed description of IOB is provided in annex 1. The study was coordinated by Frans Makken (IOB) and Bert van de Putte, whilst an advisory group of external and internal experts advised on iv Preface methodology and commented on draft reports. Many individuals, both from the Nether- lands and Bangladesh, have contributed to this study; a list of names is provided in annex 2. IOB, however, bears sole responsibility for this report. Director, Policy and Operations Evaluation Department Netherlands Ministry of Foreign Affairs Contents Listofmaps,figuresandtablesxi Abbreviationsxi Glossaryxiii ConclusionsandMainFindings1 MinutesoftheBangladesh–Netherlands(IOB)EvaluationConference, December4,1997;Dhaka11 1Designandscopeofthestudy19 1Background19 2Objectiveandmainquestions20 3Methodologicalapproach20 4Organisationofthereport24 2Bangladesh:Countrybackground25 1Bangladesh’spovertyanddynamics25 1Geographyandpopulation25 2PovertyinBangladesh27 3Populationpressureandtheenvironment30 4Bangladeshtoday:adynamicsociety32 2Historicalcontext36 1TheMughalEmpire36 2Thecolonialperiod36 3EastPakistan38 4IndependentBangladesh38 3Bangladesh:governanceanddevelopment40 3Bilateralrelations43 1Diplomaticandpoliticalrelations43 2Economicrelations45 3Culturalrelations48 4Civilrelations49 vi Contents 4Policyandprogrammecharacteristics51 1DevelopmentaidtoBangladesh51 2Netherlandsaidpolicy52 3DevelopmentcooperationpolicyforBangladesh54 4Mainprogrammecharacteristics57 5Balanceofpaymentssupport61 1Introduction61 2Macro-economiccontext63 1ImpedimentstoeconomicgrowthinBangladesh63 2GOBmacro-economicandsectorpolicy64 3Netherlandsbalanceofpaymentsaidpolicyandprogramme forBangladesh65 3Implementationandresults67 1Commodityaidtoagriculture68 2Commodityaidtoindustry70 3Debtreliefandsupplyofforeignexchange72 4Evaluation73 1Policyrelevance73 2Effectivenessatthemacro-economiclevel74 3Efficiency76 4Sustainability77 6Supporttoagriculture79 1Background79 2Bangladeshagriculturalpolicyandinstitutionalframework79 3TheNetherlandspolicy81 4Overviewoftheprogramme82 1Seed-relatedprojects83 2Otherprojects87 5Evaluation88 1Policyrelevance88 2Effectiveness90 3Efficiency90 4Sustainability90 7Supporttoindustry93 1Background93 2Bangladeshindustrialpolicyandinstitutionalframework93 3TheNetherlandspolicy94 Contents vii 74Programmeoverview94 1Supporttothesugarindustry95 2Supporttothesteelindustry97 3Projectsupporttothechemicalindustry97 4Supporttothetextileindustry100 5Supporttogasexploitation103 5Evaluation108 1Policyrelevance108 2Effectiveness110 3Efficiency110 4Sustainability112 8Supporttothetransportanddistributionsector115 1Background115 2Bangladeshtransportpolicyandinstitutionalframework115 1Institutionalframework116 3Netherlands’policy116 4Overviewoftheprogramme117 1MaritimeTransport117 2InlandWaterTransport120 3LandTransport123 4Storage126 5AirTransport127 5Evaluation128 1Policyrelevance128 2Effectiveness128 3Efficiency130 4Sustainability131 9Supporttowatermanagement135 1Background135 1Watermanagement136 2Bangladeshwatermanagementpoliciesandinstitutions137 3Netherlandspoliciesandinstitutions139 4Programmeoverview140 1Overviewofprojects140 2Projectinterrelationsandevolutionofapproach145 3EffectsofNetherlands-supportedprojects148 5EvaluationoftheNetherlands-assistedprojects155 1Policyrelevance155 viii Contents 952Effectiveness157 3Efficiency158 4Sustainability160 10Education,health/populationandwatersupply163 1Introduction163 1SocialsectorpoliciesoftheNetherlands’aidprogramme164 2Education164 1Background164 2Bangladeshpoliciesandinstitutions165 3Netherlands’policy166 4Overviewofprojects166 5Evaluation170 3Healthandpopulation171 1Overviewofprojects173 2Evaluation179 4Watersupplyandsanitation182 1Background182 2Bangladeshpolicyandinstitutions182 3Netherlands’policy183 4Overviewofprojects183 5Evaluation188 11EvaluationofNetherlands-fundedNGOs191 1Introduction191 2TheNGOsectorinBangladesh192 3PolicyprioritiesoftheNetherlands’developmentcooperation andoftheCFAs194 4HistoryandpartnershipsofNetherlandsCFAsandtheRNE withNGOsinBangladesh195 5FieldworkfindingsonservicesprovidedbyNGOs197 6EvaluationofNetherlands-assistedprogrammesofNGOs201 1PolicyrelevanceofNGOprogrammes201 2Effectiveness202 3EfficiencyoftheNGOprogrammes209 4Sustainability214 Annex1ThePolicyandOperationsEvaluationDepartment(IOB)217 Annex2Organisationofthestudy219 Annex3CasestudiesofNetherlands-assistedNGOs225 Bibliography241 List of maps, figures and tables Maps: 1 General topography of Bangladesh 26 2 Infrastructure of the gas sector in Bangladesh 104 3 Main transport corridors in Bangladesh 129 4 Location of Netherlands-assisted water management projects in Bangladesh 147 Figures: 4.1 Netherlands bilateral aid programme for Bangladesh 1972–1996 (in percentages) 58 4.2 Netherlands bilateral aid programme for Bangladesh 1972–1996 (in Dfl. millions) 59 9.2 Relations between Netherlands-assisted water management projects in Bangladesh 149 Tables: 2.1 Overview of indicators of men and women in Bangladesh in 1994 29 2.2 Sectoral composition of GDP 40 4.1 Bangladesh: total net ODA 1971–95 52 4.2 Netherlands bilateral aid programme for Bangladesh, 1972–96 57 5.1 Bangladesh: Current Account of the Balance of Payments (percentage of total imports, period averages), 1970–93 63 5.2 Comparison of investment and savings in 1991 in a number of countries (as percentage of GDP) 64 5.3 Actual income and expenditure of Central Government (as percentage of GDP) 64 5.4 Netherlands programme aid to Bangladesh in the period 1972–95 67 5.5 Imports and commodity aid for the period 1971–91 67 5.6 Netherlands programme aid assistance to agriculture in Bangladesh, 1972–92 68 5.7 Netherlands programme aid assistance to industry in Bangladesh, 1978–91 70 5.8 Supply of raw cotton, 1978–91 70 5.9 Targets and actual production in the textile sector 71 5.10 Netherlands financial programme aid to Bangladesh in the form of debt relief and foreign exchange supply in the period 1975–95 72 6.1 Overview of Netherlands project aid to the agricultural sector, 1972–95 82 7.1 Overview of the Netherlands’ project aid to Bangladesh’s state industries, 1972–96 95 x List of maps, figures and tables 8.1 Main projects supported by the Netherlands in the transport and distribution sector, 1973–96 118 9.1 Overview of Netherlands project aid to water management, 1972–96 140 9.2 Overview of Netherlands project aid to water management, by approach and period 146 9.3 Status of physical infrastructure constructed under the EIP 148 9.4 Status of physical infrastructure constructed under other projects 150 9.5 Increased agricultural production associated with projects 151 9.6 Changes in land tenure in project areas 151 10.1 Selected human development indicators for South Asian countries 163 10.2 Government expenditures on social services 1984/85–1994/95 164 10.3 Netherlands expenditures on education sector 166 10.4 Netherlands contribution to the General Education Project 169 10.5 Netherlands-funded projects in health and family 174 10.6 Results of the Medical Assistants Training Programme 175 10.7 Overview of Netherlands-financed projects in water supply and sanitation 183 11.1 Netherlands aid to Bangladeshi NGOs 193 Abbreviations ADB – Asian Development Bank ADP – Annual Development Plan ASA – Association for Social Advancement BADC – Bangladesh Agricultural Development Corporation BCIC – Bangladesh