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Driven by need, learning by experience
01.10.1997
For 600 million urban dwellers, without government or NGO support, basic services and infrastructure seem out of reach. But some people are taking action: these are the stories of three disparate communities' unorthodox and inspiring approaches to accessing water and sanitation. -
Regulating microfinance NGOs in Bangladesh
01.12.2000
Although there are over 1000 microfinance NGOs in Bangladesh, most of the volume of loans comes from a few large NGOs. At present NGOs are not permitted by law to take deposits from the public or even to on-lend the savings of loan clients, even though this is not usually enforced. The author argues that a three-tier system should be established to regulate microfinance activities: in the first tier the majority of NGOs should be permitted to accept savings from loan clients; in the second, the larger NGOs should be permitted to offer deposit accounts to the general public; and in the third, normal MFIs should be set up with private investment. The first tier should be supervised by a coalition of three second-tier institutions, PKSF, CDF and ADAB; the two further tiers should be supervised by the central bank. -
Factors affecting the financing cost of microfinance institutions: panel evidence
01.06.2018
Microfinance institutions (MFIs) aim to minimize their operating costs as a way to provide affordable services to the poor and attain financial sustainability for long-term economic viability. To contribute to existing literature, this paper examines the factors affecting the financing cost of MFIs. The study features a balanced panel data of 169 MFIs from Bangladesh’s microfinance industry, covering the period from 2009 to 2014. Based on the empirical results, internal sources of funds, such as clients’ savings and cumulative surplus, have a significant negative effect on the financing cost of MFIs. On the other hand, certain external sources of funds, notably donations and funds from government apex bodies, serve to reduce financing cost, which reinforces the efficiency and effectiveness of external support to the microfinance industry. This study suggests that MFIs should rely on internally generated funds and reduce dependency on commercial debt. -
Changes in extreme poverty in Bangladesh (2000–2015): trend, dynamics, and implications for research and interventions
01.03.2018
Headcount extreme poverty in Bangladesh has been declining since 2000, but how has the profile and income distribution of the poorest changed and what do these mean for intervention design and directions for innovations? Using national and BRAC datasets, we find important changes among the extreme poor over time including their income distribution, which has become more dispersed with a stronger positive skew. The overall economic progress seems to be lifting all boats. However, most of the extreme poor remain trapped in chronic poverty. Long-term escape out of extreme poverty, even for well-designed and well-executed programmes such as BRAC’s Targeting the Ultra Poor (TUP) programme, remains modest, though the overall impact is extremely positive. We suggest a few directions for future design to accelerate progress. This will require a bolder knowledge partnership between researchers working on rigorous evidence using experimental methods and behavioural insights, and practitioners. -
Application of Burke-Litwin model for capacity assessment of city corporations for sanitation services in Bangladesh
01.07.2019
Bangladesh has achieved remarkable success in reducing the prevalence of open defecation to almost zero, from as high as 34 per cent in 1990. However, significant disparity exists in sanitation coverage, with relatively low coverage and poor quality sanitation in poor communities. In addition, poor management of faecal sludge is leading to serious environmental degradation and is becoming a major public health concern. Local government institutions (LGIs) (i.e. city corporations and municipalities) are responsible for sanitation services in urban areas. In this study, the Burke-Litwin model of organizational capacity has been used for capacity assessment of three city corporations (Dhaka North, Chattogram, and Rangpur) in Bangladesh with regard to sanitation. Analysis based on the model clearly identified a number of ‘external’ factors such as existing rules and regulations, public opinion, political commitment, and role of support organizations that have very strong influence on the attitude and performance of the city corporations. The analysis also identified a number of ‘internal’ factors (e.g. leadership, organization culture, structure, management practice, individual skills and motivation) affecting organizational capacity and performance. Currently all three city corporations studied have very limited capacity in sanitation/pro-poor sanitation planning, investment, and management. Based on the analysis, a number of recommendations aimed at improving capacities of the city corporations in addressing inclusive sanitation planning, investment, and management are made. Lessons learned from this study could be useful in assessing and improving sanitation service delivery by LGIs in cities and towns in Bangladesh and elsewhere. -
Women's vulnerability to water-related hazards: comparing three areas affected by climate change in Bangladesh
01.07.2009
Various climate change-related events such as heatwaves, cold waves, flood, drought, sea-level rise (SLR), salinity intrusion and cyclones have both direct and indirect adverse impacts on human beings. This paper is primarily based on a study conducted to explore gender vulnerability at the community level due to water-related natural hazards (flood, drought and salinity intrusion) and possible coping mechanisms. Both secondary and primary data have been used and analysed to identify vulnerability. The study indicates that the extreme events (e.g. flood, drought and salinity intrusion) have adverse impacts which are different for different population groups. In reality, women are affected more severely: their role is quite negligible in decision making, and participation in training related to climate change issues are also insignificant. This implies that the effects of climate change-related events on women are quite conspicuous compared with other population groups.