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Finding FundsBy Md. Abdur Rouf Bhuiyan, Executive Director,
and
A.K.M. Nurul Islam,
Chief, Capacity Building Services,
|
Women make up about 85–90% of members of NGO-run microfinance programs in Bangladesh, yet they hold only 10% of the leadership positions in these programs
Women make up 85–90% of the members of nongovernment organization (NGO)-run microfinance programs in Bangladesh — yet they hold only 10% of the leadership positions.
Most female-headed NGOs operate on a small scale, are locally based, and lack the financial and human resource skills so essential to microfinance activities. Because these NGOs tend to have few employees, all of whom are heavily involved in operations and services delivery, it is difficult for them to develop their skills and institutional capacity.
The Credit and Development Forum (CDF) is a national NGO representing nearly 1,000 microfinance organizations in Bangladesh, more than 80 of which are led by women. CDF works to meet the training and organizational development needs of its member NGOs.
Recognizing that most of its female-headed NGOs have special requirements, CDF approached ADB for financial support to develop and deliver specific training modules to strengthen these NGOs.
ADB included CDF among the recipients of grant funding under the regional technical assistance, Gender and Development Initiatives, which focuses on strengthening the institutional capacity of female-headed microfinance NGOs.
It was designed to help these NGOs expand their outreach, track performance, maintain accounts and related records, tap necessary resources, and provide dynamic leadership so they can give higher quality financial services to their nearly exclusively female clientele.
ACCOMPLISHMENT Trainees from female-headed NGOs receive certificates
One of the project’s long-term goals was to assist women-headed NGOs in qualifying for funding from the Palli Karma Sahayak Foundation (PKSF), a quasi-government organization that processes microfinance from funding agencies.
Access to such funds would greatly expand NGOs’ range of projects and available financial resources.
To qualify, the female-headed NGOs must have at least 500 active members, a minimum of 1 million taka (about $17,750) worth of loans transacted, and have not received any prior PKSF funding—but have an interest in doing so. Twenty NGOs were selected to participate.
CDF conducted a workshop for NGO leaders to identify their problems and discuss possible solutions. Participants said that they—and their staff members—lacked professional skills and knowledge, their institutional frameworks were too fragile, and above all, they lacked financial resources. They noted that funding agencies, banks, and other potential sources were reluctant to provide them with financing. They also agreed that female-headed microfinance providers face specific, gender-related challenges.
For example, participants observed that female credit staff members have difficulty traveling—particularly at night or with a male colleague—and making contacts in areas where they are unknown.
They cited that community participation and public relations are generally easier for men who are not restricted by purdah (the traditional practice of keeping women hidden from men outside their own family).
THEIR TURN Several workshops were conducted for the heads of female-led microfinance agencies
Participants stressed the importance of cultivating good relations with the community, especially in light of the risks confronting female staff members who disburse and collect money.
Training was an integral part of the project. For example, it was difficult to provide the range of information required by CDF as part of a base line survey of project participants.
This challenge helped participants understand the need for more systematic record keeping and financial information systems.
The project’s capacity development phase included three, 5-day courses facilitated by CDF. One course aimed to develop the skills of NGO accountants so that they could properly maintain their accounts and prepare financial statements in line with international standards.
Another course sought to bolster participants’ supervisory and monitoring skills, and knowledge of microfinance management. The third taught senior credit managers about management information systems. CDF also monitored the course, and provided technical support to encourage participants to use the techniques being taught.
About 90% of the 180 million poor households in the Asia and Pacific region lack access to institutional financial services because of perceived risks, high costs involved in small transactions, and inability to provide marketable collateral for loans.
The lack of access to credit is addressed by microfinance providers, which offer financial services such as deposits, loans, payment services, money transfers, and insurance to poor and low-income households and their microenterprises.
Microfinance providers include nongovernment organizations (NGOs), or institutions set up by NGOs. Given the chance to save and access credit and insurance, the poor can better manage risks, build assets, increase income, put up small commercial ventures, and enjoy a higher standard of living.
With these potential benefits in mind, ADB has supported the development of women-led microcredit NGOs in Bangladesh.
The courses were participatory and featured group discussions, practical exercises, role-playing, brainstorming, simulation games, study circles, and experience sharing.
Before returning to their communities, participants prepared an action plan to apply the skills they acquired.
The project compiled profiles of 30 small- and medium-sized female-headed NGOs—information that will be useful to potential partners and microfinance recipients.
It strengthened the leadership ability of participating NGO chief executive officers, who are now better equipped to contribute to the development of their organizations and promote the microfinance sector.
The effort improved the efficiency of the microfinance NGOs in providing services to 20,000 poor people, and increased the NGOs’ chances of support from the PKSF, funding agencies, and commercial banks.
It also provided a model for capacity building of female-headed NGOs, which may be replicated in other projects.
Feedback from project participants was overwhelmingly positive. One participant commented that the training exposed her to new ideas on how to develop her organization and said she looked forward to CDF assistance in qualifying for PKSF funds.
CDF also benefited by developing new gender training modules and recruiting a gender specialist. The NGO is now considering revising its training materials and statistical analyses to raise awareness of gender and empowerment in microfinance, and to support collecting data disaggregated by gender. These changes will, in turn, help develop the gender capacity of CDF’s partner NGOs.
Learn more about ADB and microfinance
Find out how ADB promotes gender and development
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