This paper examines Bangladesh's macroeconomic performance in the light of market-oriented liberalising policy reforms. By looking at the trends in fiscal, external and investment-savings balances, it analyses how, despite falling inflows of foreign aid, Bangladesh achieved macroeconomic stabilisation and an acceleration of economic growth in the 1990s. The paper concludes that for consolidating the transition from stabilisation to growth, improvements are needed in many areas such as revenue mobilisation, the efficiency of the financial system and the overall investment environment.
