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Seminar paper from the year 2013 in the subject Sociology - Economy and Industry, University of Dhaka, language: English, abstract: The effectiveness of foreign aids to the third world developing countries is a controversial issue. Liberal economists thought, key to economic success is appropriate usage of loans, and if it is utilized effectively, such loans can have a hugely important role to play. Loans can contribute to poverty reduction, to fill the deficit of budget gap, to build big construction such as bridge, roads, public buildings, educational institutions etc. But critique of foreign aid such as Andre Gudner Frank argues that foreign aid is a means of domination, dependency, exploitation to the third world developing countries. In the colonial era, imperialist countries accumulated raw materials, natural resources, mineral resources etc. directly through colonialism or imperialism. In the present neocolonial or neoliberal society, aid is a new form of domination, dependency to the third world countries and also a means of trade, marketing of machineries, technologies etc.Bangladesh, located in South Asia, is one of the poorest countries in the world. According to the UNDP's 2010 Country Summary report, the country has a large population 164.7 million and having GDP per Capita is $ 1300. External debt is $ 316.7 per $ 1000 GDP. Foreign aid both grants and loans has impacts on the economy of Bangladesh. It contributes to the development works like bridge, roads, highways, infrastructural works etc. But it is also leading to growing indebtedness, dependency, domination etc.Padma Bridge project is the most recent and best example of foreign aid as means of development or dependency of a country. World Bank is gradually delaying the project for the acquisition of corruption against SNC- Lavalin Company and former communication minister Sayad Abul Hoshen etc. But there is also acquisition against World Bank that it was itself was in favor of fault lender institution. Recently, Bangladesh has withdrawn its proposal from World Bank but World Bank has declared that proposed loan for Padma Bridge is fixed for Bangladesh and Bangladesh can use the loan in other development projects.My paper argues that foreign aid has impact on the development but it is also means of domination and trade of donors. Bangladesh is not self sufficient not to take the aid but if the aid is channeled through appropriate biding and utilized effectively, such aid can have hugely important role for development.