"The donors need to be more flexible with loans… They should keep their commitment to ensure certainty and security of building institutions," said Nancy Birdsall, president of Washington-based Center for Global Development.

She said the donors can stall disbursements if the desired performances are not achieved but they should continue projects in case of a new government.

Birdsall was speaking at a session on 'New Issues in Development Assistance: Policy Reforms Ownership, and Governance' at the three-day International Conference on Emerging Global Economic Order and Developing Countries.

Bangladesh Economic Association (BEA) organised the conference at the Osmani Memorial Hall in Dhaka that concluded yesterday.

Outlining 'sins' committed by international donors, Birdsall noted that the gravest sin committed by them has been their impatience in building institutions as they try to push for policy changes too quickly in fragile or weak states.

Birdsall, who has held several posts in some of the top global economic organisations, emphasised the need for donors to accept failures more often and understand the need for long-term perspective in determining successes in development sectors.

Observing that agencies and countries allocating funds in too many projects in too many countries are fragmenting donor funds, she called for a rise in quality of the assistance rather than the quantity.

Speaking at the session, Professor Wahiduddin Mahmud, former advisor to caretaker government, agreed with most of Birdsall's views and said that governing institutions cannot be imported or substituted in a country.

Mahmud noted that too much emphasis on poverty is an example of 'aid populism' that detracts funds from important institutional and infrastructure sectors.

The government should have technically-informed discussions in parliament on development concerns and then take the decisions at dialogues with donors, he suggested.

The Daily Star Editor Mahfuz Anam laid emphasis on ensuring fair trade and an effort to fight the hypocrisy of rich countries in barring poor countries from competing in their professed free-market global economy.

Downplaying the role of donor funds and projects as a secondary issue, Anam said that fair and properly directed trade would prevent the impending social unrest caused by asymmetrical trade and inequality.