The Rise and Fall of the NGOs in Bangladesh: What Does the Future Hold?

Abstract

This chapter introduces Bangladesh’s national and international NGOs, followed by an evaluation of some leading NGOs’ roles in alleviating poverty of the economically vulnerable population, particularly women and children. The NGOs address these concerns through microcredit programs, nonformal education, and primary healthcare, creating employment opportunities, promoting participation in asset-building, and grassroots advocacy programs as catalysts for policy action. However, recently, NGOs have faced challenges that tend to diminish their role due to donors’ declining funds and growing government restrictions. Therefore, the chapter suggests that NGOs, in their engagement with a leadership position, survive the present economic and political challenges—and continue to help the people left behind and exploited—through social enterprises and more commitment.

1. Introduction

“Bangladesh has some of the most innovative, effective, and imitated non-governmental organizations (NGOs) in the world.”

Professor David Lewis, London School of Economics.

Nongovernmental organizations, commonly referred to as NGOs, were first called such in Article 71 of the newly formed United Nations Charter in 1945. Since then, they have become an important partner of human development by improving communities and promoting citizen participation in developed and developing countries and, more importantly, in developing countries, including Bangladesh, where millions of people are poor and left behind.

NGOs are generally nonprofit entities, independent of government influence, although they receive funds from donor agencies, government contracts, and private charitable organizations. In addition, NGOs generate resources through investments and social enterprises—nonprofit and for-profit companies. In that way, many NGOs are engaged in income-generating activities, defined as social impact businesses, such as Savar Gonoshasthaya Hospital and BRAC University in Dhaka, Bangladesh [1].

A concise description of the aims and objectives of NGOs in Bangladesh—what we know of their activities and official documents describing their Mission, vision, strength, and modus operandi—may be summarized as follows: (a) to provide affordable financial services (microcredit) to fight poverty and catalyze socioeconomic development for the poor; (b) giving nonformal education (literacy, numeracy, and skill development) to increase the productivity of poor and thereby improving their life and living; (c) providing healthcare services and healthcare advocacy (i.e., increasing awareness to initiate change); (d) engaging in the environment (climate, clean air, safe water, uncontaminated soil, and green home); and (e) advocating human rights based on humanist values (something close to the objectives of the United Nations and its agencies). Together the NGOs work to empower the powerless. Or enabling the poor.

The NGOs modus operandi is evidently to reach out to the disadvantaged people with a sense of rebuilding the community—by providing resources, including basic education and healthcare—through teamwork and participatory efforts. Many NGO leaders envisage growth with alleviation of poverty, promotion of equity, and people’s participation to involve the redistribution of economic and political power, including women’s empowerment. That sounds quite promising—and we look ahead.

The organization below reflects theoretical and practical purposes. Section 2 sets forth the essay’s analytical perspective. Section 3 is a narrative of the genesis of NGOs in Bangladesh. The following section provides a case study of 10 selected NGOs—eight domestic and two international NGOs (INGOs). The case studies are written within a broad framework of founding, funding, and function to address “key priority needs” and “current gaps in humanitarian response.” Section 5 turns to substantive issues, including sources of funding and fund cuts—and the growing government restrictions on NGOs in Bangladesh. Against this background, we have tried to develop our view from a comparative perspective—which may be called a new perspective following the book’s sub-title—of the present and future of NGOs in Bangladesh. Section 6 presents a critical overview of NGOs in Bangladesh. The final Section 7 is the central concern of the chapter: the future of NGOs and some tentative suggestions to overcome the challenges of the times.

2. Analytical framework

At the heart of our theoretical arguments for NGOs in Bangladesh is that the voluntary organizations—at least in their initial stage—were spearheaded in the absence of state capacity to deliver welfare to abysmally poor and neglected people of the country. Instead, the NGOs carried out many tasks—including small loans and advocacy—to raise them above poverty through participation. The idea flows quietly with the concept of Paulo Freire’s ideas of community empowerment and participation in NGOs’ discourse that focuses on resistance in the workplace, emphasizing class harmony rather than class struggle—and interaction for humanization for the permanent process. The central point of Freire’s Pedagogy is that education not only empowers individuals to earn their livelihood but also raises awareness of human rights—empowering them to become valuable citizens [2].

Cavalieri Coimbra [3] defined empowerment as an intentional and continuous process centered on the local community. The method of empowerment includes help, respect, critical reflection, and participation through which those people are lacking resources can access and control them. They organize an active community and participate democratically in the economy and environment. The organized community gives them a sense of belonging to the country [3].

The idea is also consistent with that of donor agencies from western democracies—including North America, Europe, Japan, and Australia that promote the ideals of participation and empowerment, which is not only cost-effective but also conducive to gaining control over decisions and resources. Moreover, participation has a political agenda that advocates for marginalized populations by opening up more spaces and opportunities for building political capabilities and participatory democracy.

There is a renewed interest among the scholars of development studies and public officials in developing countries, including Bangladesh, that economic growth with equity—and poverty alleviation—demands people’s participation within the empowerment framework. Democracy provides that framework. In one of its entries, NGOs in Banglapedia (The National Encyclopedia of Bangladesh) notes:

NGO is envisaged to involve redistribution of economic and political power, integrating rural areas into national development efforts with expanded opportunities for employment and income for rural people. … The problems in rural areas are so gigantic and complex that governments and public sector organizations often find it tough to deal with them without the full support and involvement of the people [4].

Despite those inspiring statements—and success stories that prevail in some selected NGOs—many questions remain about NGOs’ scope, impact, and effectiveness in sustainable national development [5]. There is plenty of literature on NGOs’ contribution to the fight against poverty and social exclusion, but little is known about their accountability in general financial transactions. Although transparency is critical for development organizations, many NGOs are not immune to corruption.

In this regard, Professor Paul [6] provided a guide to evaluating the strengths and weaknesses of NGOs, including transparency, accountability, limitations, and corruption (see Table 1). We keep in mind his guidelines in our following discussion.

Strengths

Weaknesses

NOGs are less bureaucratic; swift decision-makers; and have lower overhead expenses NGOs generally work on a small-scale grassroots project in remote and isolated areas, be it in development or disaster relief NGOs can design location-specific, innovative, disseminated methods on a specific practice. Group formation by NGOs is effective, and their system is easy to replicate NGOs are flexible, adaptative, and participatory, and their innovative work can be pushed comfortably NGOs’ outreach capacity is more effective in working with grassroots people. They are good at identifying vulnerable groups

Activities of some NGOs are more sporadic, independent, and small in size. And most of them lack resources and are dependent on external funding NGOs are not accountable to others, including the Government NGOs are not obliged to do partnership or collaborative work with the Government Absence of self-evaluation mechanism High job insecurity but the high turnout

Table 1.

Strength and weakness of NGOs.

Source: [6].

From an academic perspective, there is a serious disagreement between the liberal view and neoliberalism over the role of NGOs. The proponents of the liberal view give credit to NGOs as a progressive force—a potentially transformative force in promoting equal, participative, and sustainable development [7, 8]. While the neoliberals vigorously present their criticism that NGOs are nothing but privatization of public interest that maintain systematic exploitation and perpetuate inequality [9].

An Indian author and political activist, Arundhati Roy, believes NGOs pacify grassroots movements—in other words, the NGO-ization of resistance [10].

NGOs give the impression that they are filling the vacuum created by a retreating state. And they are, but their real contribution is that they defuse political anger and dole out as aid or benevolence what people ought to have by right. They alter the public psyche [10].

Not very many scholars subscribe to the idea of revolution. In their view, revolution brings the chaos of unstable state systems that people can hardly afford. In that context, we briefly review the rhetoric of NGO literature, such as “making poverty as a museum piece.” But, at the same time, we interfere with the notion that NGOs emerged with the rise of the neoliberal view, following the new economic world order—including the Structural Adjustment Program (SAP) in the 1980s and onward [11].

We attempt to provide a review of some more active, innovative, and popular national and international NGOs in Bangladesh: How much contribution they have made in average time. We also review the role of NGOs in exceptional circumstances, such as the Rohingya refugee camps in Cox’s Bazar, during the coronavirus outbreak in Bangladesh, and the recent devastating floods in Sylhet. Finally, how does the partnership (relationship between NGOs, donors, and the Government) landscape impact the development at scale sustainably, that is, survival in the future?

3. The genesis of NGOs in Bangladesh

The social sciences of development and the environment have sidelined, if not neglected, the role of NGOs as the third sector between state and market—and connecting them. So, the question is: Why does the third sector exist? The Heterogeneity Theory argues that two situations are accountable for being and prospering in the third sector—market failure and government failure. Market failure is based on the idea that the marketplace cannot deliver goods and services such as roads, security, clean air, and public health. Market failure also indicates that goods and services are available in the market, but poor people cannot afford those services—urban low-income housing is a good case.

Between one-third and one-fourth of Dhaka’s population live in slums and squatters. An estimated 600,000 children live and make a living on the street. The Government has a street children rehabilitation program, which is small in size and rife with corruption. One may define the situation as an example of government failure; there are, however, many such examples.

A few NGOs—including Restless Being and Save the Children—work exclusively for children’s welfare. For example, Restless Being focuses on accommodation, clothing, education, medical treatment, and life skill to have a sense of responsibility. At the same time, Save the Children endeavors to protect children from abuse, exploitation, trafficking, and violence through protection, education, health service, and advocacy.

Few other NGOs in Bangladesh handle externalities, such as contamination of river water and issues in shrinking open space in the cities. In all three cases, however, their work scope is minimal compared to the great demand for those kinds of services. We have elaborated on the case of environmental protection issues where we have discussed BELA (Bangladesh Environmental Lawyers Association).

Long before the independence of Bangladesh (1971), there were quite a few non-state/nongovernment organizations working with a good reputation for entertaining work and campus—they are functioning well today. The organizations include, among others, Kumudini Hospital (Tangail, Bangladesh), run by Kumudini Welfare Trust, Dhaka Ahsania Mission, known for its work of piety. In addition, the Bangladesh Academy for Rural Development (BARD) at Comilla devised an integrated rural development model emphasizing agriculture cooperatives.

Some prominent international NGOs—including Red Cross/Red Crescent, UNICEF, CARE, and CARITAS—have worked in Pakistan since the country gained independence in 1947. Then, East Pakistan—today’s Bangladesh—was the eastern wing of Pakistan. As a result, the Bangladesh Red Crescent Society was established in 1973. Since then, the Society has been working with a mission to become a leading humanitarian organization. Other INGOs worth mentioning are UNICEF, Oxfam, CARE, and CARITAS. Below we have concisely introduced UNICEF and CARE.

Following the war of independence in 1971, Bangladesh became a popular site for NGOs. Why? The precarious economic condition of the country may be an answer to the question. Another answer was a bond of thought embedded in patriotism and giving to the needy.

The decade began with a devastating Bhola cyclone in 1970, ravaging the country’s southern part and losing approximately 300,000 lives. The following year experienced a bloody civil war, with the estimated death toll varying from hundreds of thousands to 3 million. In addition, the economy was in total disarray, followed by the famine in 1974—with an estimated death toll between one million and 1.5 million—that further ruined the country, whatever was left. Quibria [12] describes the situation as follows:

At independence, the vast majority of the people in Bangladesh lived in poverty, and a large proportion of them was in abject poverty. This was reflected in a low per capita income, estimated to be less than $70 (in current price), and about 20% of the population subsisted on an annual income between $15 and $20. Nearly half of the population suffered from malnutrition, and more than 80% suffered from micronutrient deficiency (p. 2) [12].

Against this background, the top domestic NGOs in Bangladesh, including Gonoshasthaya Kendra (or People’s Health Center, herein after G.K.), Grameen Bank, Bangladesh Rural Advancement Committee (BRAC), and the Association for Social Advancement (ASA), came into being between 1971 and 1980. In addition, another NGO, Nijera Kori (we do it ourselves), for rural social mobilization was also established in 1980. A few notable NGOs of recent origin are Jaago Foundation (for children’s education), Bangladesh Plan International (for slum improvement), and Shakti Foundation (which helps children with special needs).

The following discussion focuses on three aspects of each NGO—founding, function, and funding. Since the funding source is numerous and the NGOs do not fully disclose the references to the public, we only mention some major donor agencies at the end of the case studies. Some NGOs receive substantial help from the Palli Karma-Sahayak Foundation (PKSF), the most significant rural development funding and skill development agency sponsored by the Government. All NGOs draw funds from national and international sources—while some generate revenues through social business—in addition to receiving donations. However, all of them function within the legal framework of the country. And the NGO Affairs Bureau of the Government regulates some 26,000 registered NGOs in Bangladesh.

This essay briefly reports case studies of 10 selected NGOs—eight domestic and two internationals. The domestic NGOs are Gonoshasthaya Kendra, Grameen Bank, BRAC, ASA, Dhaka Ahsania Mission, Bangladesh Environmental Lawyers Association (BELA), Shakti Foundation, and Plan International Bangladesh. At the same time, the two international NGOs are UNICEF and CARE. The NGOs have similarities and differences in how they undertake service delivery—and how much they fulfill their objectives.

4. Ten case studies of NGOs—eight domestic and two INGOs

4.1 Gonosasthaya Kendra (G.K.): a nongovernment People’s health center

Bangladesh was fighting a bloody civil war (known as the liberation war between March 1971 and December 1971) against the occupation army of Pakistan. According to the government document, 3 million people were killed, and 10 million people, including 150,000 freedom fighters and displaced person, took refuge in the Indian border states of West Bengal, Meghalaya, and Tripura. Being imbued by patriotism and the call of duty, Dr. Zafrullah Chowdhury, finishing his FRCS (Fellowship of the Royal Colleges of Surgeons) in England, returned to the liberation war sector in Tripura. He was accompanied by another Bangladeshi senior cardiac surgeon, Dr. M. A. Mobin. In mid-May 1971, they set up a 480-bed field hospital to treat the wounded freedom fighters in war with the least capabilities [13].

Following the independence of Bangladesh, the field hospital became a G.K. of the all-purpose, fully-fledged hospital under the leadership of Dr. Zafrullah Chowdhury—and over the years, Chowdhury became an uncrowned emperor of community health service in Bangladesh. He rightly observed that.

Ill health is an important factor that forces the poor to remain poor. Even if they make a little bit of money, one episode of illness can wipe them out.

Accordingly, the purpose was to reach poor people, the villagers, and the people without health care, which led to the establishment of G.K. The Government donated land and building materials for G.K. headquarters at Dhaka, and the villagers gave land and labor to have a branch of G.K. in their area. In addition, France and Netherlands gave money; the Philippines presented Ramon Magsaysay Award, and Sweden gave Right Livelihood Award. Furthermore, U.K. Bangladeshi Medical Association donated generously. In addition, several other international organizations, including UNCHR and GlobalGiving, Bangladesh charities—such as Future Bangladesh—and many individuals regularly contribute to G.K [13].

Although fees are minimal, G.K. earns revenues from two leading and five secondary hospitals in Dhaka city and its suburb at Savar—and nearly 40 health centers spread all over the country. G.K.’s Savar Kidney Dialysis Center is the largest in the country—an open heart and transplant surgery unit is near completion. In addition, the organization maintains a certain level of self-reliance by engaging in more commercial activities—such as the People’s Pharmaceutical Industry, Gonosasthya Textile Mill, Gonosasthya Printing Press, and the Gonosasthya University (a private university in Savar) to become less dependent on donors.

The above statement indicates that G.K. is growing—spread all over the country (see Figure 1). Besides health care, primary education, and vocational training for income earning and women empowerment, G.H. has several other important functions, including disaster management and helping rehabilitation of the victims. One such example is the role of G.K. in support of recent flood victims.

Figure 1.

Gonosasthaya Kendra Heath Service Centers in Bangladesh. Source: www.gonoshasthayakendra.com.

In mid-June 2022, about 8 million people have been severely affected by devastating flash floods in the northern districts of Bangladesh, including Sylhet, Sunamganj, Netrokona, and Mymensingh. People have never seen such an intensive flood with so much death and destruction in their lifetime—a harsh reminder of climate change. About 100 people died, and over 3 million have been rendered homeless. Moreover, as expected, the flooding outbreak of infectious disease seized the whole area.

While it took the government functionaries—with the army, navy, and air force—72 h to start a rescue operation of the stranded people, G.K. reached the spot with the delivery of lifesaving supplies within 48 h with 100 metric tons of food, clean water, and water purification tablets. In addition, the enthusiasm and dedication of dozens of domestic NGOs, INGOs, and many private organizations and individuals were remarkable. For instance, the Government allocated Tk 120 million for flood relief; at the same time, the NGOs and personal donations amount to Tk 600 million—a reaffirmation of their role and response to the national emergency.

Two other examples: G.K.’s presence in Rohingya camps in Cox’s Bazar is visible: Medical personnel with boxes of medicines and medical equipment started working on the day the displaced people arrived from Myanmar. Likewise, the displaced people from Myanmar today get health services from G.K. Second thing, in mid-March 2020, when Bangladesh urgently needed a COVID-19 testing kit at an economical price, G.K. came up with a seemingly practical solution with a kit at $3 only to detect the disease. The project was, however, stuck in a political quagmire—and its chief scientist returned to his previous position in Singapore.

Besides developing people-oriented health care centers, G.K. is devoted to promoting education among poor women and children and is committed to establishing women’s rights by changing their social status. Among 2500 staff of G.K., 40% are female—and working with the people, they help income generation activities—and making them aware of health and environmental issues, such as reducing carbon emissions by introducing improved cookstoves and solar lamps [13].

The location of health centers is selected based on uneven regional development in the country. For example, the northeast region—the Rangpur division, a lagging part with the highest level of poverty—has a disproportionately more significant number of G.K. projects—and there are several clinics in remote Char (shoal) areas. G.K.’s many programs, including post-flood rehabilitation—and primary health care programs in remote areas, are supported by Oxfam, the Government, and UNICEF. That means there is coordination between and engagement with the Government, NGOs, and G.K.

A Board of Trustees administers the G.K. Dr. Zafrullah Chowdhury is a Trustee—a founding Trustee, of course. For the last 50 years, he has been arguing and working for inclusive growth and social justice, and minimum dignity for the poor and down-trodden—engaged in building power at the base. He has written books and seminal papers community health and development, including the National Drug Policy in 1982, and drafted other national policies in the following years. Dr. Chowdhury is highly respected and a lovable man whose larger-than-life persona is inextricably linked to the NGO literature. His great work resists not promoting neoliberalism at home and abroad (see Figure 2: Main building of G.K.).

Figure 2.

Main building of Gonosasthaya Kendra, Dhaka, Bangladesh. Source: www.gonoshasthayakendra.com.

4.2 Bangladesh rural advancement committee (BRAC)

Two NGO leaders of Bangladesh—Sir Fazle Hasan Abed of BRAC and Nobel Laureates Professor Mohammed Yunus of Grameen Bank—are distinguished for the dream and work of social entrepreneurship since the country’s independence. Their passion and path to change the life of teeming millions of rural Bangladesh by meeting the needs of small finance capital, primary healthcare, and nonformal education made a difference. Cooperation with the Government and international NGOs—including UNICEF, Oxfam, and CARE—and multinational companies (MNCs) such as Nokia, BRAC, and Grameen Bank have substantially alleviated poverty (between 1980 and 2020) by providing immunization, vaccination, family awareness, and microfinance loans. We will first discuss BRAC, followed by Grameen Bank.

Like G.K., BRAC has its roots in war-torn, poverty-stricken Bangladesh due to the liberation war in 1971. With a naval architecture degree from Glasgow and chartered accountancy from London, Sir Fazle Hasan Abed sold his apartment in London and returned home in early 1972. With that money, he founded the Bangladesh Rehabilitation Assistance Committee (later Bangladesh Rural Advancement Committee) to fight poverty, predominantly by concentrating on women. BRAC dealt with the long-term task of improving the living condition of the rural poor and women’s empowerment using tools like microfinance, primary education, healthcare, raising awareness, and social enterprises.

BRAC’s microfinancing program offers small loans to women to promote economic entrepreneurship in local communities addressing issues related to gender inequality. Raising awareness among the people means investing in their future by using loans, sending children to BRAC school, and taking opportunities for BRAC health services. Another example of awareness is the organization of community-based rights programs, such as “barefoot lawyers,” a project that increases awareness of legal rights and delivers services to the doorsteps of the poor—so that individuals recognize and defend their legal rights and duties of a citizen.

Microcredit, microfinance, and small loans—are interchangeably used in NGO literature without much clarification. Their aims and objectives—and the nature of repayments—are rarely mentioned. Hence a brief statement of the concepts (in the context of BRAC) is in order [14].

The loans are distributed against some documents (address, assets, social image (e.g., police record, etc.) but without collateral assurance—but refundable within 52 weeks with 6 weeks grace period. The loans are of two types—Dabi loan, which borrowers can use the money without accountability, and Progoti or enterprise loan, which is distributed for the initiation of new small businesses or entrepreneurs who want the expansion of existing business.

There are four categories of enterprise loans with some observable characteristics, which are as follows:

1. Incentive loan with a range of Tk. 75,000–400,000, payable in monthly installments.

2. A growth loan is similar to an incentive loan; the difference is the loan amount, which ranges from 400,000 to 1,000,000 Taka. In addition, the eligible customers must have a good track record of repayment.

3. Flow loans do not have installments. Instead, the loan takers arrange with BRAC and repay according to the contract.

4. Finally, the consumer loan generates comfort in their life—and more efficient living—with consumers durable, such as T.V., refrigerator, furniture, motorbike, and computer [15].

While there are specific rules that BRAC follows in disbursing loans, there are no such clear-cut principles that make a difference between social enterprise (nonprofit) and business for profit. Social enterprises may be defined as engaging in commercial activities seemingly nonprofit with social objectives. BRAC has a dozen social enterprises, including Aarong (a chain shop of articles of clothing), BRAC Dairy, Seeds and Agro-industry, Artificial Insemination, Nursery, Sericulture, Fisheries, Recycled Handmade Paper, Cold Storage, Printing Press, Sanitary Napkins, and Delivery Kits. In addition, BRAC has four profit-making organizations—BRAC Bank, BRAC IT Service Company, and a 26% share in edotco (a network telecommunication infrastructure with 15,000 towers)—and BRAC University. The university—with its Business School, Computer Science Department, and BRAC Institute of Governance and Development (BIGD), is ranked among the highest in Bangladesh’s higher education and research seats.

BRAC is the number one NGO in the world—empowering people and community, creating opportunities for social development, including education, health, human rights, livelihood, and disaster preparedness in a dozen countries, including Asia, Africa, and the Americas with its headquarters in Dhaka. The claim may sound an exaggeration, but the impact of BRAC cannot be overemphasized. Since its foundation, 13 million children have graduated from 31,000 BRAC schools in rural areas, 9 million clients received microfinance, 50 thousand health workers delivered primary health care in four corners, and 2.1 million families graduated from poverty. Moreover, BRAC’s presence—with its elaborate organizational structure, was noticeable in all regular programs and disaster-affected areas, including the recent ruinous flood in the country’s northeastern region mentioned above (see Figure 3). Reliefweb notes:

Figure 3.

BRAC’s organizational structure. Source: www.brac.net.

The non-governmental organization BRAC has been working alongside the local Government since the beginning of the recent flood situation in the country. The organization has allocated Bangladeshi Taka 3 crore from its funds for emergency flood relief. The money will be used to provide dry food, safe drinking water, oral saline, matches, candles, essential medicines, and other services to people affected by the flood. The money will also be used to rescue people trapped in floods. Initially, the relief will provide support to around 52,000 families [16].

The border between social enterprise (seemingly nonprofit) and for-profit organizations such as Aarong and BRAC Bank is overlapping, if not elusive. Nevertheless, BRAC earns revenues from those enterprises that cover 75% of its expenditure for rural development—and urban slum improvement, including water supply and sanitation (see Figure 4). In that sense, BRAC is both a large organization and a self-supporting, autonomous institution. In addition, there is a long list of donors and partners—including World Bank, UNICEF, ADB, USAID, UNDP, UNCHR, FAO, Citibank, Mastercard, Living Goods, and U.K. Aid British people—who give money, materials, and international supports. The donor’s aid—in the form of funds, awards, and recognition—ensures the clout and prestige of BRAC. The NGO Palli Karma-Sahayak Foundation (PKSF) is also a development partner of BRAC. PKSF is an apex government institution training rural people with microfinance to implement sustainable rural development. BRAC’s employment opportunities programs for women and marginalized groups are tailored to meet the local needs—and complement to PKSF program.

Figure 4.

Distribution of enormous branches of BRAC both in rural and urban regions of Bangladesh as well as plan international Bangladesh. Source: Author.

However, in June 2021, BRAC suffered great disappointment with the U.K. aid cut worth 450 million British Sterling Pound a year with a plea that the fund would go to the poverty-stricken African countries needing more overseas help than Bangladesh. Nevertheless, the withdrawal of funds affected women’s and girls’ education and those in extreme poverty in Bangladesh. According to one study by the Power and Participation Research Centre (PPRC) and BRAC Institute of Governance and Development (BIGD), more than 20 million people have slipped into extreme poverty since the pandemic. In addition, millions of people left cities during the pandemic to their rural homes—as they lost their work and income—many have not returned, putting an extra burden on the rural economy. The fund cut was not simply a financial loss but a withdrawal of BRAC’s strategic partnership with the U.K. The flop came when Bangladesh recovered from the widespread corona pandemic and flood havoc in North Bengal that marooned one-fourth of the country. The situation in 2022 is even worse, with an indirect effect on food and fuel due to the Ukraine–Russia war, followed by another heaviest flood in 121 years.

Sir Fazle Hasan Abed, the lifeblood of BRAC, received numerous national and international awards, including the Ramon Magsaysay Award for Community Leadership, Spanish Order of Civil Merit (2014), Leo Tolstoy International Gold Medal (2014), UNDP Mahbub ul Haq Award for Outstanding Contribution to Human Development (2004), and Palli Karma Sahayak Foundation (PKSF) Award for lifetime achievement in social development and poverty alleviation. He also received many honorary degrees from Yale, Columbia, Oxford, and Princeton University. In addition, in 2010, he was knighted in a special ceremony at Buckingham Palace in London to recognize his contribution to reducing poverty in Bangladesh and internationally. The legend died on December 20, 2019, at 83. The leadership vacuum in BRAC at this critical juncture would not be filled in quickly if at all filled in.

4.3 Grameen Bank: bank for the poor in Bangladesh

With a freshly minted Ph.D. in Economics from Vanderbilt University (USA), Professor Muhammad Yunus returned home in 1972 with the same passion and zeal as his two predecessors (Dr. Zafrullah and Sir Abed) to do something for the poor and helpless in the country. He joined as the head of the Economics Department of Chittagong University and eventually became involved with poverty reduction after observing the 1974–1975 famine—established rural economics program in his department. The famine led to an escalation of food prices, a rise in unemployment, and the erosion of farmers’ purchasing power—poverty looms large all around—left a deep mark on him.

In 1976, Professor Yunus closely observed the poverty situation of a village named Jobra, close to Chittagong University. His observation revealed the problem affecting the poor in Bangladesh in person was the lack of access to money at low interest so that they could start a small business, including cattle raising, start raising poultry, or buying a small cart to carry people and goods. They also build small water well for irrigation. The traditional moneylenders charged usurious interest. The excessive rate of interest kept the borrower perpetually poor. Professor Yunus also realized that training and subsidy to agriculture alone could not alleviate poverty in rural areas where 92% of people used to live.

He firmly believes that given a chance with a small loan, the poor villagers can improve their income and pay back the loan in time. It may sound trifling, but he lent $27 from his pocket to 42 people without collateral—and the initiative worked well. Overcoming many obstructions, Professor Yunus met his well-intention effort in securing a credit line from Janata Bank, offering himself as the guarantor for the project. By October 1983, the project—specializing in making a small loan to poor villagers—was converted into a fully-fledged bank named Grameen Bank or Village Bank. Grameen Bank was an independent project—established through a special government act—while the Government owned a minority stake. Thus, Professor Yunus became the pioneer of microfinance. Although before him, a microcredit-based poverty alleviation program was in practice at Bangladesh Academy for Rural Development (BARD), Comilla, Bangladesh, albeit on a small scale.

The uplifting story of Grameen Bank with microenterprise loan continued to grow in the 1990s and 2000s with new programs, which are as follows:

• Housing the poor: At the end of 1999, Grameen built 560,000 homes with a housing loan of $190 and near perfect repayment. In 2000, Grameen Housing Program received the prestigious Aga Khan International Award for Architecture.

• Scholarships for the children: Grameen provided scholarships for the children of Grameen members, keeping 50% of scholarships exclusively for girls.

• A special provision of higher education loans and financial assistance for nursing training was made for the Grameen children.

• Grameen gave a loan to 1.6 million+ villagers to buy a mobile phones to raise the village’s voice toward an inclusive information network. The project engaged people interested in social communication, financial transaction, and behavioral change.

The combined effect of microenterprise and mobile phones—which helped make an informed choice—changed the lives of hundreds of thousands of villagers, particularly village women in Bangladesh. Their income-earning through self-employment rather than labor-wage made a behavioral change with confidence to help themselves invest in their small business that can bring a significant shift in families (see Figure 5). In the images of busy rural housewives making a substantial income by raising livestock and poultry.

Figure 5.

Livestock raising with a microloan from Grameen. She started with one goat, and after 10 years, she owns a small firm. The example is not anecdotal, there are many such examples. Source: [17].

While the role of microfinance hardly needs an introduction in developing countries, including Bangladesh, where market failure and government failure loom, what is new and novel in Grameen Bank is its modus operandi. The Bank’s credit delivery system and its recovery are more specific:

• Grameen gives small loans (around $100) to poor people without requiring collateral and creates “mutual trust, participation, and creativity.” The borrowers formally organize a group of five—and the members of the group are morally responsible for repaying two of their members’ loans.

• Loans are repayable in weekly or monthly installments, and the borrower is eligible for a subsequent loan depending on the repayment of an earlier installment.

• The Bank does not work for profit but initially takes a low interest from the borrowers, but the interest rate increases in later years. By December 2015, the Bank had 8.81 million borrowers, and the Bank earned Taka 24 million with a loan recovery rate of more than 97%.

Many organizations were initially enthusiastic about Grameen Bank’s role as an institution for poverty alleviation in Bangladesh. Some of them, including the Norwegian Agency for Development Cooperation (NORAD), Ford Foundation, and Bangladesh Bank, gave millions of dollars to make sure the Bank functions unconstrained. However, in 1995, Grameen Bank decided not to receive any donations as it became self-sufficient¹.

The Grameen Bank of Bangladesh attracted worldwide attention, leading to its many replications in over 40 countries, including Grameen America in Brooklyn, New York. At home, another subsidiary of Grameen Bank is the Grameen Kalyan (Welfare) Health Program, which provides primary care for the bottom 20% of income households in urban and rural areas—millions of people are served with empathy and empathy care. As a result of various social contribution activities, the Grameen Bank of Bangladesh and its founder Professor Muhammad Yunus received Nobel Peace Prize in 2006. In addition, he received the U.S. Congressional Medal in 2013, Olympic Laurel in 2021, and 136 awards from 33 countries.

However, some analysts suggested that microcredit was linked to exploitation—many borrowers cannot escape from the exorbitant rate of interest (between 15% and 20%) the Bank charged from early 2000. In addition, many poor families had to sell their belongings—some borrowers even committed suicide—to avoid humiliation from the Bank workers. Finally, in March 2011, the Government stripped off his position as Managing Director of the Bank in charge of financial irregularity, age bared for the post, and exploitation of the poor. Dr. Yunus denied all the allegations [18]. Nevertheless, the professor amassed a considerable fortune through other social businesses, including Grameen Telecom. Bangladesh Anti-Corruption Commission is investigating Yunus’ Grameen Telecom irregularities, while at 82 years old professor is fighting a rolling political criticism against him.

4.4 Dhaka Ahsania Mission

The oldest and one of the most prominent NGOs—working in the field of human welfare—in Bangladesh is Dhaka Ahsania Mission (DAM); it was established in 1935 by Khan Bahadur Ahsanullah, then Assistant Director, Education of undivided Bengal. Khan was a Sufi philosopher believing in the divine and humanitarian services. His contribution to the Muslim awakening in the Indian subcontinent—when the Muslims were lagging—is remembered with great reverence. Although DAM aimed to promote education for the socioeconomic development of Muslim majority East Bengal, a spiritual current followed quietly. Khan described the purpose of the mission as follows:

This mission’s purpose is comprehensive: worshiping the creator and service to the creation. This mission has been born with the great responsibility of developing the whole human Society and shaping a spiritual life. It is not limited to any particular community … and does not differentiate between human beings. The love of the creator for every creation is equally present, so to discriminate against the creation is to look contemptuously at the creator. The service of creation is the service of God [19].

DAM has a long list of projects for socioeconomic development. Below we provide the number of projects in each development sector—with some elaboration on the three most outstanding projects. DAM has 13 projects in the education sector, 10 in the health sector, five in the economic development, four in the technical and vocation, three in WASH, two in rights and governance, and six in climate change and disaster risk reduction.

Three outstanding projects are as follows:

1. Ahsanullah University of Science and Technology (AUST) was established in 1996 with the Faculty of Engineering and Computer Science, Architecture & Planning, and Business and Social Sciences. In addition to the university, there are two other technical universities outside Dhaka and a dozen institutes of science and information technology spread all over the country.

2. Ahsania Mission Cancer and General Hospital. A state-of-the-art modern cancer hospital with 500 beds serving approximately 3.5 million patients each year. The low-income patient pays 30% lower than the actual cost others pay the total cost. DAM raises funds from individuals, corporations, and donor agencies—many wealthy religious people donate generously.

3. Ahsania Mission Children City was established a decade ago to rehabilitate street children of Dhaka city. According to one estimate, there are 1.5 million street children in Bangladesh; out of that, close to one million languishes in Dhaka. They live and work on the street, including unoccupied dwellings, bus garages, railway stations, and launch terminals. DAM has provided secured shelter for 250+ children with functional education and skill training for the last 2 years. In addition, a full-grown village is near completion to accommodate 10,000 street children with education and compassion.

4.5 Association for Social Advancement (ASA), Bangladesh

ASA belongs to the first-generation NGOs in Bangladesh, established in 1978 by a well-educated visionary (M. Shafiqul Haque Choudhury) with a commitment to improving the economic and social wellbeing of mostly rural landless people. ASA’s following ongoing programs may provide a more explicit representation of the NGO’s functions:

• Microfinance: Like Grameen Bank, ASA’s microfinance program provides uncollateralized small loans, small savings (or capital built-ups), and microinsurance services. Savings and insurance program offers opportunities for borrowers to deposit money with a withdrawal option in an unexpected economic emergency—and provide security against default. The program started in 1991, with 7.2 million clients living all over the country. In addition, ASA offers loans and consultation services to small and medium enterprises (SMEs). SMEs play an important role in the economic success of developing countries, including Bangladesh.

• In the beginning, ASA had a substantial program for social development in the rural areas of health, education, and sanitation. However, in 1991 the organization abandoned those programs and focused solely on microcredit lending, operating mainly in Bangladesh but having branches in Africa and South America. Over time ASA International has become one of the world’s largest microfinance institutions giving loans to low-income entrepreneurs, most of whom are women.

• ASA is a less donor-dependent—that is, a self-financed—institution. It has a university—ASA University Bangladesh with 4000+ students. Although it does not pursue any significant social development program, it responds—like many other NGOs in Bangladesh—to help with disaster management, including the recent floods in Sylhet.

4.6 Three second generation NGOs: Shakti, PIB, and BELA

The focus of those NGOs is other than microfinance for the rural poor. For example,

1. Shakti (Energy) Foundation—established by Dr. Humaira Islam in 1992—is devoted to disadvantaged women’s economic promotion in slum areas of Dhaka with small loans. However, Shakti’s more important function has been a renewable energy program by setting up a solar home system in remote rural areas of Bangladesh where on-grid electricity is not available. Shakti has provided about 60,000 with the solar system with a convenient payment scheme and free training on how to use the system. The program contributes to the socioeconomic as well as environmental benefits of the households.

2. Plan International Bangladesh (PIB): On June 12, 2022, a less-known NGO, PIB, made a headline in the Daily Star, the top most circulated English daily newspaper in Bangladesh. The story’s title reads: 72% of girls in Dhaka slums are scared while bathing in open spaces. This is because they do not have security, let alone privacy. Moreover, some nasty people in the neighborhood living in tall buildings may videotape their bathing pictures and then spread the videos on social media.

   To address the issue, PIB started a project titled “Empowering Girls for Economic Opportunity and Safe Bathing Space for Community Use.” Under this project, they have established 15 shaded bath spaces in four slum areas of Dhaka city. As the project title indicates, PIB has low-income (informal sector) urban development programs to empower girls for economic opportunity. A few important projects are preadult (between 11 and 15 years old boys and girls), reproductive health care education for young adult girls, skill training for income earning, encouraging participation in community activities, and extending help for disaster management. PIB has expanded its activities on a larger extent in different parts of Bangladesh to ameliorate the development activities (see Figure 4).

3. The Bangladesh Environmental Lawyers Association (BELA) was established in 1992 “to assist efforts to protect the environment.” According to its founder, Dr. Syeda Rizwana Hasan—a law school graduate with distinction—the focus of BELA is to “promote the notion of environmental justice in Bangladesh.”²

BELA has several noteworthy achievements to credit, including creating environmental awareness among people and compliance monitoring (i.e., the Government, private businesses, and individuals) following Bangladesh’s environmental law. Next is the war against the shipbreaking industry. The industry is highly polluting as it contains large amounts of carcinogens and toxic substances that harm the human body and the environment. Under Rezuana’s supervision, BELA won three lawsuits demanding “rights for workers and banning in Bangladesh of ships carrying poisonous substances.” Other notable works include stopping the real estate invasion of wetlands, cutting hills, deforestation, and unlawful construction of St. Martin’s Island.

From an intellectual perspective, BELA has a strong publication record. Two of its books—Laws Regulating Environment in Bangladesh and Transboundary Water Issues in South Asia—are used in legal practice and academic reference. BELA also publishes its newsletters in English and Bengali (Bela Barta), updating its activities.

Because of the organization’s outstanding contribution to environmental protection, BELA received quite a few prestigious awards, including the Global 500 Roll of Honor’ under the United Nations Environmental Program (UNEP) in 2003 and the joint winner of the 2020 Tang Prize in Rule of Law for Sustainable Development.

4.6.1 Small NGOs

Small NGOs are doing great work. There are several small NGOs that do great jobs. We will give three examples of such NGOs in Bangladesh.

• IPDC finance (Industrial Promotion and Development Company) offers advisory services to the corporate sector and supply finance in the SME sector. What is more important in our context is that IPDC provides Child Marriage Prevention Loans to low-income families. More than 50% of girls in Bangladesh are given marriage away before they 18. The loan ends child marriage in numerous cases and helps them keep in school.

• Jibon Tori: A floating hospital for the people living in poverty-stricken remote char (shoal) area. This NGO is a unique organization that provides health services—with doctors, nurses, medicine, and health information unavailable—where government and private health services do not exist.

• Nabolok Parishad means an assembly of a new world. The NGO upholds the value of people’s rights—and works for human rights in general and women’s empowerment in particular. Like many developing countries, women in Bangladesh suffer from exploitation, abuse, and intimate partner violence (IPV), putting wife beating. In a broader sense, the NGO works to ensure human dignity, gender equality, and democracy.

All those NGOs get grants from foreign donors and large domestic NGOs such as BRAC by doing a part of the latter’s work and sharing revenues of the project.

4.6.2 Expatriate NGOs

Another exciting development in NGO networks has occurred recently. Many Bangladeshis living and working in Europe, the US, Canada, and Australia are stakeholders in the development of their home countries. Bangladesh’s government is very positive in support of expatriate NGOs’ contribution. We give two examples of such NGOs.

• Humane Water: This is a scientific NGO based in Wichita, Kansas, which aims at providing a “sustainable solution to potable water supply free from the pathogen, arsenic, and other organic and inorganic containments of both surface and groundwater.” Their program includes the installation of water wells with water filters in arsenic-prone areas in Bangladesh. They also distribute food and clothes to Rohingya refugees and install clean water wells there.

• SHEBI (The Society to Help Education in Bangladesh International) is another expatriate NGO based in Boston, Massachusetts. The organization is “composed of people of Bangladeshi origin and friends of Bangladesh in the U.S. and abroad.” SHEBI’s objective is to provide general education for children and physically challenged students (such as autistic children) in Bangladesh.

4.7 Two international nongovernment organizations (INGOs): CARE and UNICEF

Two hundred plus INGOs are doing their humanitarian work in Bangladesh. More familiar names are Red Crescent (Red Cross), Oxfam, UNICEF, CARE, Save the Children, and Action Aid. We have selected CARE (for their massive relief effort in Rohingya Refugee Camp in Cox’s Bazar) and UNICEF (supplying 190 million COVID-19 vaccines and 2022 flood relief). Below we briefly describe their founding, functions, and funding source³.

4.7.1 CARE

Cooperative for Assistance and Relief Everywhere (CARE) is one of the largest and oldest INGOs committed to providing emergency relief and humanitarian assistance to several countries, including Bangladesh. CARE International was founded in 1945 with its headquarters in Geneva, Switzerland. It was established in 1971 in Bangladesh with food security, health and nutrition, climate emergency adaptation, women empowerment, and disaster risk reduction programs.

However, one of the unique functions of the organization is to deliver emergency relief for disaster victims. The disasters include the civil war in Syria and Yemen, the earthquake in Nepal and the Southern Coast of Mexico, the drought in the horn of Africa (Ethiopia and Kenya), and one million-plus Rohingya refugees fled to Bangladesh after Myanmar’s armed forces crackdown in August 2017.

CARE has provided shelter, water, sanitation, and hygiene programs (WASH), cash vouchers for essential household items, and sexual and reproductive health services—and they do through intersectoral coordination and interorganizational coordination. One hundred fifty-six NGOs—80 international and 76 local NGOs—are working in the camps. The staggering number of NGOs indicates the magnitude of the problem and the importance of national and internal NGOs for delivering humanitarian services that the Government could not handle alone, particularly in an emergency.

Let us take two examples. First, fire hazards and flooding are common problems in the camps. For instance, on January 9, 2022, a massive fire broke out in two Blocks of the camps. Under the supervision of the Refugee Relief and Repatriation Commissioner (RRC), CARE reached the spot in a rush—called fire service and civil defense—to rescue the victims—and rehabilitate them in safe places. Another example was in May 2018, when heavy rains in Bangladesh threatened the lives—and made thousands of lives vulnerable—with landslides and flooding in the camps; CARE made a substantial contribution to save their lives. In cooperation with the Government and other NGOs, including the International Organization of Migration (IOM), CARE relocated them to a safe place protected by a concrete footpath and railing. In short, many refugees in the camp consider CARE—and UNICEF—as a stand-by help.

CARE receives contributions from individuals, organizations, corporations, and governments of western countries—and multilateral funding partners, including the E.U. and major organs of the U.N., such as FAO, ILO, and UNDP, to name a few partners.

4.7.2 UNICEF

The United Nations International Children’s Fund was created in 1945 to improve the health and wellbeing—and long-term needs of children and mothers of Western Europe devastated by World War II. The mission of this special U.N. program eventually spread to many developing countries and came to Bangladesh in 1950.

Since then, UNICEF has been cooperating with successive governments of (former) East Pakistan and today’s Bangladesh to address the deadly issues of childhood tuberculosis, smallpox, malaria, and cholera. They also develop maternal health services training local midwives. In a broad sense, UNICEF is engaged in improving the condition of children affected by poverty and social exclusion living in the urban slums of Dhaka and Chittagong. In addition, they work closely with the Government to support children’s needs, including health, nutrition, and education. For example, their education program in the Rohingya camp covers 10,000 children, which many consider a milestone for refugee children.

UNICE’s list of humanitarian actions is long, and its history is rich. We will give two examples of historical importance. During the civil war between Bangladesh and Pakistan in 1971, approximately 10 million people fled to the neighboring Indian states of West Bengal, Assam, Tripura, and Meghalaya. Many were sick, critically malnourished children and reported cholera cases. UNICEF’s readiness and dedication to helping were remarkable.

Next, on May 31, 2022,

UNICEF delivered over 190 million COVID-19 vaccines to Bangladesh in one year through COVAX. To date, Bangladesh remains the top recipient of doses under COVAX, the global initiative co-led by the Coalition for Epidemic Preparedness Innovation, Gavi, the Vaccine Alliance, and the World Health Organization, with UNICEF as a key delivery partner [20].

UNICEF is a highly organized institution with its headquarters in New York—and seven regional offices (in Panama City, Geneva, Bangkok, Nairobi, Amman, Kathmandu, and Dakar) administer overall management. UNICEF also has six other offices—located in different parts of the world—each with a unique function, including program and policy, external relations, operations, and emergency programs.

UNICEF receives five types of funding: Regular resources (on which UNICEF builds programs); Thematic funding (that helps meet the basic needs of children and protect their rights); Earmarked fund for a specific program purpose); Humanitarian Funding (for emergency relief); and Pool funding and trust funds (representing more than one donor’s contributions and holding the fund in trust. UNICEF’s annual revenue has been increasing over the years: Its revenue in 2014 was 5266 million dollars; in 2017, 6577 billion dollars, and in 2021, 7.2 billion dollars, according to UNICEF Annual Report 2021.

5. Sources of funding and fund cut for domestic NGOs

The domestic NGOs of Bangladesh are not so lucky to receive donors’ funds. Although there are numerous donor agencies—including the U.K. Department of Fund for International Development (DFID), the Global Fund, Australian Department of Foreign Affairs and Trade (DFAT), USAID, Embassy of Demark, United Nations Commissioner for Refugees (UNHCR), UNICEF, World Food Program (WFP), Global Affairs Canada (CAN), Swedish International Development (SIDA), and Bill & Melinda Gate Foundation, to name a few.

However, the flow of donations—foreign grants to NGOs working in Bangladesh—declined by 14% till May 21, 2021. The more than Tk. One thousand crores (U.S. $1 = Tk. 90) drop in funding is causing an existential crisis for many small and medium NGOs (see Figure 6). Even one of the most prominent NGOs, BRAC, feels aid cut to Bangladesh is a gut punch to them. The organization stumbled in the shadow of disappointment by the U.K. aid cut—worth 450 million British Starling Pound a year to BRAC. This withdrawal from long-term partnerships affected women and girls’ education and those in extreme poverty in Bangladesh due to the devastating impact of the coronavirus endemic, followed by the ensuing war between Russia and Ukraine [21].

Figure 6.

The flow of foreign grants to non-governmental organizations (NGOs) working in Bangladesh. Source: [21].

According to one estimate, there are 26,000 NGOs in Bangladesh; out of that, 2600 NGOs are registered. And some 260 international NGOs are working in Bangladesh. Both national and international NGOs are registered with the NGO Affairs Bureau, Government of Bangladesh. They are regulated by the rule and regulations of the Bureau.

The Foreign Donation Regulation Act 2016 in Bangladesh provides for a series of highly restrictive measures that significantly limit the ability of NGOs to operate independently. Another restrictive action is that NGOs cannot receive foreign donations without government approval. Many NGO heads complain the restrictions encourage red tape on bureaucratic behavior that hinders NGOs’ work progress.

About 40-plus INGOs working in Rohingya Camps are upset that their work is hindered without reason. Although the domestic and international NGOs are doing vital work on the Government’s development plan, there is no uniform law and authority for regulating and monitoring this sector [22]. This state-NGO relation in Bangladesh may be defined as a new dimension of “indifference and ambivalence” while, at the same time, the donor’s contributions are shrinking.

Against this background, what do we think about the future of NGOs in Bangladesh? And why do we feel so? We present a concise critical overview below in the form of the essay’s conclusion in the following sections.

6. A critical overview of the NGOs in Bangladesh

6.1 Raison d’être of NGOs in Bangladesh

6.1.1 National perspective

Above, we have presented a concise account of the origin, growth, and development of the four most prominent NGOs—Gonosasthaya Kendra, BRAC, Grameen Bank, and ASA—that came into being as a historical necessity. They share the same goal: rebuilding Bangladesh, which is devasted by the liberation war. Leadership in this socioeconomic development movement was highly educated, dedicated, and determined, knowing fully well what was the right thing to do for poverty alleviation and overall development of the poor. They delivered health services, a small loan to poor people, particularly women, and primary education to underprivileged children—and created awareness among women about the practice of family planning, preventing child marriage, and abuse of females.

Although there is no objective definition of success—and it is more difficult to quantify success—we will substantiate the role of NGOs from three perspectives: a quantitative measure, some anecdotal examples, and an evident part of NGOs during emergencies. We consider the contributions of all registered NGOs after independence (1971)—and NGOs working long before independence, such as Ahsania Mission, Dhaka.

At the time of independence, the threat of the Malthusian catastrophe was frighteningly real: many economists thought that Bangladesh’s ability to control its population would be its litmus test for economic viability. However, belying conventional belief, Bangladesh displayed a striking success in birth control: in 1980, the population growth rate in Bangladesh was 2.72, and in 2000, the rate declined to 1.01. Other demographic indicators are equally inspiring. For example, the infant mortality rate fell from 138 to 25—and the literacy rate increased from 35 to 75. Bangladesh has experienced a stellar growth rate of, on average, 6% + for the last three decades, 1991–2021. As a result, the poverty rate declined from 50% in 2000 to 20% in 2020 [12].

A World Bank study examined the contribution of microfinance, the standard function of most NGOs in Bangladesh, in 2016. The following results were concluded from the study:

Microfinance institutions (MFI) have sustained benefits over two decades in reducing poverty and increasing incomes. Microcredit accounted for a 10% reduction in rural poverty in Bangladesh over that time—meaning MFI lifted some 2.5 million Bangladeshis from the ranks of poor [23]. However, this role in alleviating poverty is no mean achievement. Moreover, the NGOs offer entrepreneurial skills in raising livestock and poultry. By doing that, there are plenty of examples that rural homemakers improved their income earning opportunities—and increased the supply of eggs and poultry meats to the local market.

Microloans are used not only for raising livestock and poultry but for various other purposes, such as operating as working capital, purchasing inventory and supplies, purchasing (or leasing) boats, trishaws, fishing nets, and materials for embroidery quit. Moreover, what preceding analysis shows that NGOs are not simply giving microloans; they are hope givers. They provide health and wellness, primary education, skill training, and opportunities for women, which the Government and the market failed to reach [24].

Employment generation is another NGO contribution to the development of Bangladesh’s economy. They create employment in two ways: a) NGOs provide loans and assistance to rural poor to participate in employment generation activities, and b) they provide employment in their organization. For example, BRAC has 120,000 people on its payroll. Gonosathaya Kendra has even more employees. However, more than one-third of college graduates remain unemployed in Bangladesh. Therefore, NGOs employing fresh college graduates greatly help the economy.

6.1.2 International perspective

NGOs are a significant part of the international system in today’s globalized world. The problem of developing nations becomes more apparent, and their level of democracy and development constitute a substantial space in the foreign policy agenda of the western governments. NGOs have grown in number, size, and stature since the end of World War II. Western donor states—and several U.N. agencies and World Bank—emphasize the role of NGOs in democratization, service provision, and prioritizing climate change.

The World Bank defines NGOs as private organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide essential social services, or undertake community development [25, 26]. Some critics say NGOs are part of the promotion of western hegemony in the global south Maybe. But the facts remain that NGOs have a strong foundation, draw resources from home and abroad and retain a substantial potential role in bridging the gap between Government and Civil Society. So, the NGOs are not going wither away due to fund cuts and government restrictions. However, the fund cut will minimize the scope of NGOs’ work and development programs in the country. Some small NGOs will be closed down temporarily or seize to exist forever.

6.1.3 Emergency perspective

Bangladesh is a disaster-prone country: periodic floods, cyclones, tidal bore, and droughts are perennial problems. On top of that, 1.2 million Rohingya refugees fled their homes, creating the largest refugee crisis in today’s world. And a return of Rohingya is a world-class debate. That means, with all probability, they are not going back home, and the problem remains. Furthermore, the aid has declined in recent years (see Figure 7), which has accelerated multifaceted problems for Bangladesh.

Figure 7.

Fund for Rohingya’s aid declined (2017–2022). Source: www.unocha.org.

Time and again, it has been proved that NGOs and INGOs rush to help alleviate the predicaments of the disaster victims—in addition to their long-term goal of social development, including poverty alleviation. We have discussed the caring and constructive role of most NGOs at a reasonable length and found their role is substantive—and their connection is international. So, the role of NGOs leads us to conclude that they do good by helping people and doing business to help themselves. Moreover, our observation of some NGOs’ dedication and enthusiasm to rescue victims of massive flooding in Sylhet–Sunamganj–Netrokona gives us an impression that for some people, helping others—particularly those living with poverty and vulnerability—is transcendental.

Nevertheless, it is pertinent to present a brief criticism directed at the NGOs in Bangladesh—without being ambiguous and logically confused.

• Issues in Sustainability of Development: During the last three decades (1990–2020), rural areas of Bangladesh have witnessed a considerable positive change due to several factors. The critical factors are—among other things—microcredit as a bottom-up financial tool to alleviate rural poverty [27]. So, the role of microfinance is once more recognized. But the recent survey by the South Asia Network of Economic Models (SANEM) shows that the poverty rate in Bangladesh increased from 21% in 2019 to 42% in 2021. While the reason for this exacerbating poverty was the impact of the coronavirus pandemic, there is no denying that the development in Bangladesh was not sustainable. The Government and the NGOs cannot evade responsibility for this disastrous situation.

  Unfortunately, the NGOs were not “very visible in the COVID-19 response.” Save the delivery of 150 million COVID-19 vaccines by UNICEF’ Furthermore, in the post-COVID regime (2022 onward), Russia’s invasion of Ukraine has disrupted the global trade of food, fuel, and fertilizer. And the impact of war is being felt in Bangladesh—inflation increased close to 10%, making many more low-income people worse off. Since the western donor’s fund declined, the NGOs’ presence in rural areas has been less conspicuous.

• The Gap between Promise and Performance: Most NGOs seek to combine economic development (through offering microloans, training, and skill development) and social development (in health, education, nutrition, and sanitation) with credit provision. Their report cards, considered by many critics, are so-so. However, many NGOs’ goals include establishing human rights, particularly the rights of women at levels—in family and workplaces. Yet, there is plenty of evidence that females are discriminated against by male members of the family and get lower wages in industries—including the ready-made garment factories—for doing the same jobs. Moreover, the dowry-related death (between 0.6 and 2.8 brides per year per 100,000 women) remain unabated over the years. So are the suicides, fire, and other forms of domestic violence against women reported [28].

• Rural Bias in Development Goals: Grameen Bank and BRAC stated their programs taking some 12–15 villages, then spread all over the rural areas in Bangladesh—the program is often called grassroots level program because of its origin, growth, and development mainly cover the rural geography. This anomaly occurred due to two phenomena: a) Bangladesh in the 1970s and 1980s was primarily a rural agricultural economy; and b) historically, the successive governments of Bangladesh followed an urban containment policy. Now things have changed: in the 2020s, urbanization is 40%, the urban contribution to GDP is 70%, and employment in the labor force is 40%. However, One-fourth of Dhaka city’s population (5 million people) lives in slums and squatters with a subhuman condition. Therefore, the issues need to be carefully studied and addressed.

7. Concluding remarks about the future of NGOs in Bangladesh

The future of NGOs is the future of the 1st decile population in Bangladesh, whose income share is 1.01% of national income, as opposed to the 10th decile, which gets 38.16%. Besides interpersonal income inequality, there is a vast regional disparity. For example, the population below the poverty level in Kurigram and Dinajpur—the two poverty-stricken districts of the Rajshahi Division—was 70.8 and 64.1, respectively. While the percentage of the below-poverty population in Narayanganj and Munshiganj are 2.6 and 3.1 only. The two districts are in close vicinity of Dhaka, the capital city of Bangladesh. The data shows that interregional uneven development is broad and conspicuous [29].

It is worth noting that many NGOs, including BRAC, have not overlooked this regional gap in development. For example, Table 2 (Row 6) clearly shows that the most significant number of division-wise microfinance branches and village organizations are located in the Rajshahi division. While this geographical development in the lagging regions, remote villages of that region—is a considerable challenge for the Government—which relies on the bureaucrats and local leaders with a vested interest—NGOs can reach the target people more effectively.

Division name	No. of microfinance branches (MFB)	No. of village organizations	No. of MFBs per 1 million popn
Barisal	122	12,302	15
Chattogram	566	34,063	23
Dhaka	587	43,417	13
Khulna	261	27,652	16
Mymensingh	155	16,768	13
Rajshahi	636	67,125	34
Sylhet	154	12,727	13

Table 2.

Division-wise number of microfinance branches and village organizations of BRAC.

Source: www.brac.net.

Let us substantiate our view on humanitarianism. Buthe et al. [30] study—based on an original data set—finds “strong support for the argument that the deeply rooted humanitarian discourse within and among aid NGOs drives their aid allocation, consistent with a view of aid NGOs as principled actors and constructivist theories of international relations [30].”

However, Freire’s concept, challenges, and opportunities are inherent in organizations, including NGOs. Nevertheless, we believe the future of NGOs is partly the future of the grassroot development of Bangladesh. Several inspiring stories of NGOs’ success in poverty alleviation with the provision of health and education are mentioned above. In addition, INGOs’ rapid response to disasters and emergencies guided by humanitarian principles cannot be overstated. So, NGOs and INGOs deserve more support from home and abroad. However, the question remains how the NGOs could reconcile with the funding challenge situation.

Scholarly literature on how to cope with NGO funding issues suggests

• To achieve financial stability and resource mobilization through business activities—balancing social and entrepreneurial values. The suggestion is good for microfinance or healthcare services but of no use for environmental protection. For the latter, goodwill and the generosity of others to cover costs are essential

• Next is diversification: Investment in various projects, in other words, allocating resources to multiple projects to minimize the risks and uncertainties. Also, to subsidize the nonprofit from the profit of the social business.

• NGOs should leverage inspiration, time, and relationships to achieve momentum and success. And when a new opportunity arrives, NGOs should avail themselves of it. Let us give two examples.

In November 2020, Bangladesh received $256.5 million from the U.N. Green Climate Fund (GCF) to promote private sector investment by adopting energy-efficient technologies in the textile and garment sectors [31]. In addition, in July 2022, the World Bank approved a $500 million credit to Bangladesh for disaster preparedness and to minimize the impact of inland flooding [32, 33]. These small amounts compare the country’s need for implementing National Adaptation Plan. And more funds are expected to come. What is needed is for the environment-oriented NGOs to build up their capabilities to undertake adaptative actions to minimize the negatives of climate change.

Those are general suggestions for all NGOs. But NGOs are not a monolithic concept—they vary in size and function. There are large, medium, and small NGOs based on resources, annual revenue, and the size of employees. So, the future of all NGOs is not the same. However, large NGOs have distinct advantages over medium and small NGOs, and their future is relatively more secure than others.

7.1 Large NGOs

Large NGOs are like banyan trees. Over time, they have spread out to several major sectors of the economy, including health, industry, education, bank, agro-firm, cottage industry, trust fund, and microcredit business. As a result, they earn substantial revenue from that, and they can comfortably cross-subsidize nonprofitable programs, such as free schooling in rural areas or eye-camp for cataract surgery. Nevertheless, when donors’ contributions become less generous, the NGOs’ nonprofit programs tend to shrink—or close altogether. Again, we have the example of BRAC above. The U.K. government’s funding cut has negatively impacted girls’ education, access to family planning, and support to families in extreme poverty.

7.2 Medium-size NGOs

Although there is no standard scale for measuring large, medium, and small NGOs, we may consider some criteria such as annual revenue and the size of employees. For example, while BRAC has 120,000 employees, JAAGO Foundation has 400-plus employees, and Shakti Foundation only has 176 employees. So we may define them as a medium size NGO. Those kinds of NGOs usually maintain a good connection with large NGOs, INGOs, and the Government—and they receive some funds and, more importantly, subcontract a project from them. They also do microfinancing, making some profits. So, they have a good chance of survival in one way or other.

7.3 Small NGOs

Small NGOs are less resilient to any exogenous shock, including donation loss. They are mainly run by small projects in remote areas with funds from large NGOs and INGOs. However, they do microcredit business in those rural villages and city slums, which overlooked other NGOs. Small-scale microfinance is the primary source of survival. Many of them are, however, vulnerable due to reduced donor support.

7.4 INGOs

INGOs have relatively large and secured funding for they belong to the donors’ community—and their reputation is above board, though they are not blameless. It is alleged that a significant part of the donation is spent on the maintenance of INGO staff in the form of their salary, travel, research, and allowances. Others say the compensation of INGOs staff appears to be high in the context of Bangladesh, not in an international context.

The classification of NGOs—large, medium, small, and INGOs—are broad. Each category of NGOs has a diverse function and sources of revenue. For example, Gonosathya Kendo and BRAC are both large NGOs. Still, they are known for different functions—Gonosasthya for healthcare, BRAC for microfinance and rural development—similarly Shakti for education, and Plan International for slum improvement.

Therefore, further investigation of each NGO based on functional category is needed to better understand their work and network. On the same token, the source of funding from donors and local governments—and local private sources—need to be a constant search for opportunities arising from potential sources of funding for the NGO sector. One last point: NGOs have rich databases but are mostly under-cited. This database—may be used by universities and research organizations—that can provide new insights into critical areas of national development.

To summarize the stories, funding cuts force many NGOs to minimize the scope of their work, sometimes breaking their commitments. Moreover, the post-pandemic situation—further aggravated by the Russia-Ukraine War—is a significant challenge for the Government and nongovernment organizations to carry through their development and humanitarian work. However, the future of NGOs depends on how effectively they cope and build resilience [34]. Help may come from progressive groups whose willingness to help we have defined as transcendental.

Challenges and opportunities are inherent in all organizations [2], including NGOs. Nevertheless, we believe the future of NGOs is partly the future of the grassroot development of Bangladesh. Several inspiring stories of NGOs’ success in poverty alleviation with the provision of health and education are mentioned above. In addition, INGOs’ rapid response to disasters and emergencies guided by humanitarian principles cannot be overstated. So, NGOs and INGOs deserve more support from home and abroad. However, the question remains how the NGOs could reconcile with the funding challenge situation. Our answer is they should do both: social business with a nominal profit and social work with a humanitarian action and social transformation mission.