While foreign aid is most needed in underdeveloped, fragile and post-conflict states, top contractors aren’t always willing to carry out development projects in these regions, even once funding materializes. This lack of equilibrium of demand and supply can be found in forgotten and hot spot corners worldwide — including places like the northeastern pocket of India.
The Asian Development Bank has invested nearly $1 billion in Assam, one of seven states that comprise India’s remote northeastern region.
But contractors aren’t following the money.
“We need competent contractors. But because of the geographical location of the region and distance, it is difficult to attract competent contractors to the region,” Hun Kim, ADB country director for India, was reported as saying during a multilateral development forum in Shillong, in India’s Meghalaya state.
In July, the Asian Development Bank announced plans to provide the northeastern region with a $74.8 million loan to improve and upgrade roads between the different states. But the region has also recently been plagued by political strife: In the same month, ethnic riots in Assam killed at least 30 and forced tens of thousands of people out of their homes.
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