It is well known that the United States of America sided with Pakistan during Bangladesh’s War of Independence in 1971. But, it was also the same US that had helped Bangladesh the most after India in the post-war reconstruction. Within six months of independence from Pakistan following a bloody war that saw the supreme sacrifice of millions of Bangladeshis, US provided Bangladesh with aid worth $216 million, just a million dollars shy of the contribution ($217 million) of India, the country’s staunchest ally during the Liberation War. By 1973, the US became the largest foreign contributor of Bangladesh.

Bangladesh bore all the hallmarks of a war-ravaged country after its victory against Pakistan on December 16, 1971. Infrastructures disappeared and agriculture production nose-dived. Industrial productions have reduced to half owing to different crises, including raw materials. Inflation and unemployment were at their peak. Hunger and poverty were everywhere. At that testing time, the new Bangladesh government, led by Bangabandhu Sheikh Mujibur Rahman, had to heavily rely upon foreign aid to face challenges of reconstruction of the country. And, Bangladesh did receive aid from India, the US, then Soviet Union and other countries at that time of need.             

The most formidable challenge for war-torn Bangladesh was to address the food crisis. The production of rice went down in 1971-72 fiscal year by 15-20 per cent as compared with 1969-70 fiscal. The export of main cash crops like jute and tea drastically went down due to declining agricultural production and problems regarding business infrastructures.

Against the backdrop of such a gloomy situation, it was becoming impossible to reconstruct the country without foreign aid and grants, according to the analyses from policymakers and media at that time. Different sources say Bangladesh received relief and grant worth around $697 million from different countries in first six months after the victory in its war against Pakistan. Among those country, India, the US and Soviet Union alone contributed $485 million. This aid that was made available at the time of dire need was the main tool of the new government to face the challenge of restructuring the country. No less than 75 per cent of the first annual development program of the country was from foreign aid.            

More than one-third of the assistance came from India, the first neighbor of Bangladesh, till June, 1972. India helped newly independent Bangladesh in different ways starting from cash grant to signing of trade agreement. New Delhi pledged to provide $267 million of which $217 was released before the end of June, 1972. In that year, India allocated 7.5 lakh tons food grain for Bangladesh. Four lakh ton arrived by June. Aside from relief and grant, India was at Bangladesh’s side in many other ways. The foreign currency reserve of the country began its journey with the soft loan from India. Even, the first bank notes of the country were printed in India.       

Large scale assistance also came from the US. Washington provided $216 million in first six months of 1972 and by the next year, it became the largest contributor, surpassing India. The total US assistance for Bangladesh in 1973 was $318 million.

During the liberation war with Pakistan, the USA stood against the people of Bangladesh. However, it brought a radical change in respect to Bangladesh after the independence. The US became the largest donor of Bangladesh to get rid of the bitterness caused by Washington’s role in 1971, says a New York Times report on March 10, 1973. “It is not clear to many Bangladeshis as to why the US is giving them money. Only two years ago, they considered us adversaries,” a young American told the newspaper.

A Bangladesh foreign ministry official said at that time, “The US approach was practical. They became our largest donor without making a hue and cry.”

In the beginning of March, 1972, Bangabandhu flew to Soviet Union on a five-day trip during which Moscow pledged to provide relief and development assistance worth $52 million. Bangladesh got that money by June. Later, Soviet Union declared additional assistance worth $10 million.

In the war-ravaged country, it was extremely necessary to resume exports and imports to keep the economy going. But, the all-important Chittagong port could not be used as the Pakistani forces placed mines in and around the port. The Soviet Navy started demining in April, 1972 and made the port useable in three months. The port became fully operational in June, 1974.  

Apart from India, the US and Soviet Union, many other nations came forward in Bangladesh’s assistance. In six months after independence, Canada provided $45 million, Sweden $27 million, Norway $12 million, Japan $11 million, the United Kingdom $9 million, France $4 million, former Yugoslavia $7 million and other countries gave $97 million.