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Role of NGOs now thrown into question

Published : Monday, 11 November, 2024 at 12:00 AM  Count : 411
Md Mohi Uddin
Charity is as longstanding as the history of mankind. From the day men going onbreathingtogether in society, since then they have started to supporteach other.In ancient time, people used to live in tiny circles and whenever any one of them fell into distress, the strong and empatheticone would come out to help the underprivileged and the shabby. The replacedpredominant version of these dispersed and unorganizeddoings is today's non-government organisations (NGOs). 

The rapid growth of population, evolution of new socio-economic as well as spiritual problems, public fund crisis in social well-being etc. made it almost incredible for continuingresolution of all these complications by the government alone. Hence, the emergence of NGOs was considered with much standing in this respect.

The history of NGOs in Bangladesh could be traced way back to the British colonial period. Since the British era, NGOs in its traditional form have been working in Bangladesh as different religious trust-based schools, hospitals and orphanages. However, NGOs in Bangladesh got a radical transformation which turned into agents of development in the post-independence period. Since 1970s, NGOs therefore has become the part of the institutional framework of poverty alleviation in Bangladesh which is inseparable.

 Progressively, NGOs started to work in the field of group formation, credit, formal and non-formal education, health and nutrition, family planning and MCH (Mother and child Health), gender development, poultry and livestock, agriculture, sanitation, environment, human rights, advocacy, legal aids and many other fields. Relentless efforts with ultimate passion have led NGOs towards assisting the poor in poverty alleviation and to empower them in every sphere of social life.


There are 45,000 NGOs working in the country according to social welfare ministry. On the other side, 2,636 NGOs registered with The NGO Affairs Bureau (NGOAB) which was established in 1990. Bangladesh is the breeding ground of few world-renowned NGOs, some NGOs mainly focus on Microfinance, Development Program and Solar Home System etc. For regulating microfinance operation, Microcredit Regulatory Authority (MRA) established by the Government in August, 2006which is proposed to be renamed as Microfinance Regulatory Authority. 

Right Now,724 Micro Finance Institutions (MFIs)are operating,but, Grameen Bank is out of the jurisdiction of MRA as it is run under a distinct legislation- Grameen Bank Ordinance, 1983. MFIs have played a transformational role in empowering marginalized communities by providing access to financial services particularly to those who were previously excluded from formal banking systemsso as to engaged in incomegenerating activities and break the cycle of poverty which was not imaginable before due to lack of collateral, documentation, and geographic isolation.Total distributed loans among beneficiaries (about 98% is female) of Tk.2,63,824.00 crore whereas outstanding is Tk.1,56,278.00 crore for the year ended June 30, 2024 in which top 20 MFIs covering almost 80% of total portfolio. Out of that Portfolio At Risk (PAR) is 10.37%. (consisting of Special Mention, Sub Standard, Doubtful and Bad loan).  

One common criticism is the potential for borrowers to fall into a debt cycle if they are unable to repay their loans. Some borrowers take out multiple loans from different MFIs to cover previous debts which could lead to overindebtedness and hinder social mobility. In response to these challenges, microfinance institutions have been offering financial literacy training to help borrowers to manage their loans effectively and avoid overindebtedness. Technology into microfinance has further extended its reach and impactthat reduced barriers to financial inclusion. 

In spite of having substantial role in the overall socio-economic development, recent years specially after covid-19, there is a question whether they are playing role as it was established for. Country's big NGOs going towards corporate culture, they are concentrating on national development, resulting considered as development partners. Whether NGOs are non profit, corporate or family organization, it is difficult to classify since primarily it was established for poverty alleviation. 

As per TIB report, there is severe gap in internal management &process. In most circumstances, local level board members are the relatives and friends, Chief Executive Officers make decisions without arranging board meeting. Moreover, reports are prepared without having verified information which is given to funding agencies, even data collected from field level. Consequently, how much they are working for the people is not displaying in the declaration they are providing. Small NGOs do not declare salary structure in the recruitment circulars, performance measurement is not in a standard way. On the other hand, in recruitment,there are vast involvement of funding agencies, NGO Affairs Bureau, local influential persons. Embezzlement issues are common phenomenon. So, challenges that are facing: a) Good governance & accountability, b) No specific policy for recruitment, recruitment of friends & relatives, existence of nepotism, c) Autocratic decision making by CEO while other members are avoided, CEOs controlling financial decisions, communication with donors, project budget preparation, common fund. The whole framework needs to be refurbished with new vision to facilitate the promotion of a healthy NGO sector and strengthenGovernment-NGO collaboration&partnership in functioning for the betterment of the people. 

Accountability, good governance, awell decorated &crystal-clear recruitment policy must be in place.Skilled managers & workers needed for effectiveness in working area so as to funding agencies could get exact information. Dependency on foreign fund should be reduced since donation crisis would create NGOs financial condition vulnerable. Reforming should be in line with changing circumstances keeping in mind that working areas would not limited rather enlarge their capabilities including employment opportunities, ensuring participative & sustainable development. Once more, those NGOs working for rights, they have no income generating projects, so, internal crisis should be under consideration while refurbishing. Those restructuring is needed for the nation, same thing is desirablefor NGOs also as it significantly influencing advancement of marginal people.

The writer is a bank analyst



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