With a contribution of more than half of the world's aid, the European Union (EU) is an important aid actor in global poverty reduction and the promotion of good governance. This book determines the impact of EU aid on poverty and governance in Bangladesh through a case study of the EU's aid in education sector. It is argued that the EU is an important development partner of Bangladesh but the aid programme is inefficient and lacks effectiveness. The EU is both the largest aid and trade block for Bangladesh- a strength that has not created enough political leverage to promote good governance in Bangladesh. The study argues that in Bangladesh the EU can be considered as a passive actor with underutilised normative power, especially in the field of political reform. This puts into question the EU's ability to become a global actor on the basis of its activity in the development sector only. The analysis can serve as a general case study of impact analysis of European aid and will be relevant to academics and practitioners working in the field of aid and European aid, international politics, globalization and European external relations.