The Aid Lab

Elite commitment matters

If we really want to understand why Bangladesh sets the global standard for poverty reduction we need to properly understand the role of politics — not only as a fig leaf for when times are hard, but also to explain what has worked. More specifically, we need to make sense of the political settlement, or effective agreements between the elites as to how to share the spoils of power, and what those mean for poverty and inclusive development. As Mushtaq Khan has convincingly argued, Bangladesh’s development success owes much to how the elites managed to coordinate enough to permit broad-based economic growth.

But Bangladesh’s pattern of development has been poverty-reducing, partly because of its strong emphasis on human development, particularly for women. And to explain that, we have to understand why Bangladesh’s elites agreed that it was so vital to tackle poverty head-on, and to ensure that the poor rural masses got at least some modicum of protection against the elements and the vicissitudes of life on the Bengal Delta. I tell the story of this elite settlement in my book The Aid Lab: Understanding Bangladesh’s Unexpected Success, available from Oxford University Press.

The emergence of the aid lab

My own analysis of the politics of Bangladesh’s unexpected development success is less congratulatory of the aid industry and its clever prescriptions. It is also an altogether uglier story of how the international community applied “lifeboat ethics” to justify their neglect of the 1.5 million victims of the 1974 famine in Bangladesh, and of the violent aftermath of that particularly tragic period in Bangladesh’s history.

My reconstruction of the political history of that time concludes that an elite consensus emerged that committed the Bangladeshi ruling class to protecting the rural masses against the crises of subsistence and survival that so frequently swept their way. This elite consensus included accepting the painful conditions that came with foreign aid, because without external support, the short-term survival of the country, let alone of the political elite, looked bleak.

And it meant letting aid experts treat Bangladesh as a kind of laboratory for aid, in which they often treated as the targets and objects of development, instead of as people with rights, agency, and autonomy. It may have got the Bangladeshi people into the global market, but it has done so on terms that are precarious, at best.

And so the World Bank, and the aid community in general, has little to congratulate itself for treating Bangladesh as the world’s aid lab. It should instead look again at the politics that underpin successful transitions. And it should take more seriously not only where development is taking us, but the ethics of how we are to get there. If Bangladesh was really the test case for development, what does that say about development?

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