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This article critically examines several dimensions of the Bangladeshi migration to Assam, beginning with the historical background and the factors that led to the Assam Movement. It is argued that the seeds of the apparent failure of deporting illegal Bangladeshis were already implanted in Assam Accord. An analysis of the numbers of the Bangladeshi migrants in Assam and the problems of ascertaining such numbers has been carried out. The impact of large-scale migration on Assamese culture and politics is discussed in view of the balkanisation of the ethnic groups in Assam. Attention has been drawn to the dangers of geopolitics in terms of the proposed North East economic zone. Lastly, a relatively conciliatory and accommodating approach to solve the Bangladeshi issue has been suggested in light of the fact that historical events have overtaken some significant  provisions of the 28-year old Assam Accord.

The effect of foreign aid on the welfare levels of both the recipient and the donor country has been a much analysed topic for research in both the theory of international trade and development economics. In the development economics literature, concerns have been raised since the 1960s on the possible adverse effect of foreign aid on domestic savings and growth.1 The trade theory literature in this respect is much older and dates back to the 1920s when Professors Keynes and Ohlin debated on the effect of foreign aid on international terms of trade.2 Ever since, the terms of trade effect has been the cornerstone in the analysis of the welfare effect of foreign aid in the trade theory literature.3 After some early confusion, it is now well established that in a Walrasian stable world economy with two countries, a necessary condition for foreign aid to have perverse effects is that there is some distortion in either of the two countries.4 It is also known that, under normality and substitutability of goods, untied aid cannot be strictly Pareto-improving in a tariff distorted world.5