They said although the contribution of foreign aid to gross domestic products (GDP) is less than two percent, the donors are advocating policies such as market liberalisation and opening up of services sector which 'ruin local industries'.

They urged the government to stop for good taking foreign aid which they said contributes little to national development. Though aid volume is declining, the number of conditions of donors is rising, they said. In 1980s, the contribution of foreign aid to GDP was 10 percent, but now it is less than two percent, they added.

Lokaj, an organisation engaged in social awareness through research and analysis, and Voice, a research and advocacy organisation, held a press conference in Dhaka to announce findings of their research.

Addressing the press briefing titled 'Resist donors intervention in national development policy' officials of the organisations said out of Tk 1.8 lakh crore foreign aid that came in last three decades, Tk 1.35 lakh crore went back to donors in the form of consultancy and machinery purchase.

According to their research, of the total aid in last three decades 12 percent went to foreign machinery suppliers, 13 percent to foreign consultants, six percent to local commission agents, seven percent to bureaucrats and politicians as bribe, four percent to local consultants, 13 percent to construction contractors, 20 percent to influential quarters in city and town and 25 percent to project workers and borrowers.

Quoting a statistics of US State Department the research says that against a single dollar aid to third world countries, US companies earn two dollars. The research also refers to a report (2001) of UN Economic and Social Council (Ecosoc) that concluded that there is no relation between economic policy and activity driven by foreign aid and poverty reduction.

Addressing the briefing, Ahmed Swapan Mahmud, executive director of Voice, and coordinator of the platform, said the donor suggestions such as devaluation of local currency, phasing out of subsidy from productive sectors, market liberalisation, wholesale privatisation are dwarfing role of the government, which is suicidal.

He said the government is formulating a poverty reduction strategy paper (PRSP) to meet requirements of donors, although there is little participation of people in the process of formulation.

Arup Rahi, executive director of Lokaj, said in the name of PRSP and structural adjustment programme the donors are creating opportunity for foreign multinational companies.

He said the rich countries are continuing their farm subsidy but advising Bangladesh to reduce agriculture subsidy apparently to destroy the sector, which is backbone of the economy.

Leaders of Bangladesh Farmers' Association, Bangladesh Landless Association and other workers' unions and socio-cultural organisations also spoke at the press conference.