The U.S. is set to give Bangladesh $202 million USD in international aid after fatal protests last month have caused massive upheaval. The U.S. has committed to supporting Bangladesh’s economic growth, institution building and development, in light of the recent ousting of former Prime Minister Sheikh Hasina last month. This is a part of a 2021 agreement made by The United States Agency for International Development (USAID), promising Bangladesh a total of $945 million of which $425 million has already been given. The six-person delegation met in Daka to discuss a request for $5 billion in aid made by the head of the interim government, Muhammud Yunus. Bangladesh has also sought a $4.7 billion bailout from the International Monetary Fund after the invasion of Ukraine which has increased prices and left the economy destabilized. 

In a televised address last week, Chief Adviser Yunus said the government was appealing for $5 billion in  foreign aid to help Bangladesh recover their economy In reaction to this, USAID set aside $202 million dollars in order to promote good governance, social, human and economic opportunity and resilience. 

According to Reuters: The U.S. embassy released a statement on its Facebook page following the meeting with Yunus, emphasizing its readiness to support Bangladesh in its pursuit of a more “equitable and inclusive future”.

Receiving aid is a step in the right direction for Bangladesh, and the U.S.’ support for this democratic country shows a commitment to peace and stability in the international order. As with many developing countries, Bangladesh suffers from government corruption and economic instability. This can dilute the effectiveness of financial aid in stabilizing their government. Often, funneling of aid directly to the government is inefficient and funds are not allocated effectively. In order to ensure these funds are being used to tackle actual political issues, the U.S. and international organizations must establish programs and efforts that make institutional changes. This is the only way for change to last.

Bangladesh has had a relatively short but contentious history in its time as a sovereign country. During the partition of India in 1941, Bangladesh was separated into a Pakistani province as East Bengal. Eventually, due to cultural and linguistic differences and tense power dynamics, protest movements led to  the Bangladesh Liberation War, resulting in the creation of Bangladesh in 1971. The war left Bangladesh with a weakened government, a destabilized economy, and the difficult task of state building and reconstruction. The country underwent two military coups and authoritarian rules before being restored to parliamentary democracy in the 1990s. However, the government still faces instability, mismanagement and corruption, and significant environmental crises. It has undergone multiple humanitarian crises since its realization. 

A common issue with countries that need aid is that there are no proper institutions in place to implement the aid effectively. Funds are often siphoned off by government officials, or poured on non profit organizations without proper planning leading to the use of aid in ineffective ways. Giving aid to unstable countries is a step in the right direction. The U.S.’s willingness to pledge aid to Bangladesh shows a commitment to stabilizing their budding democratic government that is essential to maintaining peace in the international order. However, in order to create lasting change, the U.S. must implement programs and allocate personnel to manage their funds. Ultimately, assisting in the creation of a stable government is the best solution to a stable statehood.