The Role of Development NGOS BRAC and the Grameen Bank
this case study, we examine two of the largest, needed services to the poor. Through helping the
L most innovate, ans most acclaimed developing poor identify their own needs and priorities, BRAC
country-based development NGOS in the world, has developed high-impact and widely emulated
both based in Bangladesh but with global reach: program innovations in education, nutrition, health,
and other fields
BRAC, a quintessential multidimensional develop-
men organisation, and Gravamen Bank, like BRAC By sclegal rights, advocacy, and Internist Dsome measures, DkA 1s now the largest
a microtinance pioreer that has engaged in other NGO in the world. BRAC'S activities contribute innovative initiatives
more than halt of 1% of Bangladesh's GDP. As of
BRAC had over employees, making
it the country's second-largest employer Just over
BRAC, preyiously known as the Bangladesh Rural half of BRAC employees are primary teachers in its
Acvancement ommittee, is an extraordinary NGO widely emulated nonformal BRAC Education Pro
wnose mssiOn 15 poverty reduction. 1The BRAC gram. While BRAC programs such as "microcredit
moce lumunates how omparative advantages plus" have been widely replicated in other coun-
of NGOs can function to support poverty reduc- tries, none operate on BRACE SCale. 5Ac IS a
tion and illustrates conditions under which NGOs complex organization, with over 8 million grass-
extend ther activities in the face of deficiencies of rootsmembers (usually one woman per household)
government and private-sector actors. BRAC is and over 6 million microfinance borrowers. These
consistently ranked as among the top-rated NGOs members participate in BRAC's basic units, the
in the world, number one in a Global Journal Village Organisation (VO). There are nearly
Vs, each consisting or 35 to 50 women trom a
BRAC was founded in the early s to aid dis- village or neighbourhood. BRAC currently works
placed persons in the attermath of civil war and in most of the country's villages through a
famine. The organization's leaders soon understood system ot 14 training centers and over branch
that the problems of the rural poor were chronic oftices, with a budget of approximately half a billion
The BRAC Model
and structural, and they turned their attention to U.S. dollars
long-term development and poyerty alleviation
Onoe highly dependlent on donors, BRAC has
efforts. BRAC origi. ally operated in the rural areas responded to cionor demands for greater self-reliance.
of Bangladesh, where government is characterzed BkA 1s now more than 70% self-supporting The
Dy low capacity and hgh corTuptian. In contaist aor souirce or its internal revenue is a growing
DIAC has grown attracting runds Decauiseewo O producave enterprises that it has estab-
Or its reputation for competence, dedicatiOn, Inno* 1snea, with the twin aims of pOverty reduction and
net income generation for its poverty programs
With tens of millions of people and some regions BRAC OWns or co-owns and operates several snmalt
ot Bangladesh caught in complex poverty traps, and medium-size enterprises with the expliat aim
BRAC has had to innovate continuously to bring of direct or indirect poverty reduction as well as its
vativeness, accountability, and effectiveness.
income-generating mission. BRAC rural enterprises interrelated village programs secking to mee a var-
produce goods such as chalk, seeds, shoes, and san co povery reeong0als, AS lan Smillie sho
ary napkins. Although these are all classie prien s progs in credit, health, and
UOds, an extended rofe tor ely, they hatye
to Bangiadesh's often aysu nonfor- In Bangladesh 30.
provide assistance to victims of famine and dis- one of the major driving1oces in this transforma
placement. Soon, however, Abed and his organi- tion through its eaucation program. BRAC began
ation concluded that poverty was a chronic and establishing highly jnnovative village nonfomal
ntrenched problem, and they tumed their atten- primary schoOO1S 1n 1, n resPOnse to the needs
ion to development and poverty alleviaion. Abed and requests ot the viulageoen t whom it
nas won international recoghition for his, work, works. A major reason tts ao not send
ncluding the Kamon Magsaysay Award, the Noma their children to school is that their work is needed
Prize tor Literacy, the Feinstein World Hunger at home and on the small famiiy tarm plot to help
Award, UNICEF S Maurice 'ate Award, and the the family survive. A secona reason 1s the intimi
+ Gates I'rnze. AWare of the need for sustained dation and alienation that uneaucared parents andd
leadershiP, bRAC 1s developing a new generation their children feel in traditional school settings. A
t protessionals who contine "o innovate in poverty third is harassmernt of giris.
alleviation programs while increasing the efficiency The program structure was developed to respond
and effectiveness ot existing programs.
BRAC has helped ill the vacuum sometimes left part in other BRAC programs. BikAC schools teach
Dy 8ovenment, takng or: many or the functions ot the children ot poor, often landless families. Well
BO0d govenance-targeting public goods, provicing Ove two-thirds ot the students are giris. In the earier
common-pool.(or common-property) g00ds, and years or the pro8ram, the schools tyPlcaly ope
ndvocating ror the poor. Ihe intiuence of BRAC has ated for oniy a few hours a day so that the children
been so great that a popular saying in Bangladesh 1S can help at home and in farm or nontarm actvitie
that we have fwo govemments, the formal gover Parents decide whether classes will be held in the
ment and BRAC. Despite its siZe, BRAC remains very morning or the evening, depending the nature
lexible. When catastrophic flooding hit the country of the village s needs. Little homework asigneu,
in August , BRAC temporarily reassigned virtu- homework requirements were identified as a ma
ally its entire organiZation relier acavities
ne nchpln proBram, microinance for the poOr, BRAC hoped to make up tor shorter schoo no
Stalrted tWO years Derore the urameen bank. 1he with a higher-quality education teatuing a sig
ram is targeted to individuals owning very cantly smaller class size ot about 30 to 9,
little land and typically involved in rural nontarm teaching styles, and the care shown torte pa
activities Such as door-to-door sales and small-scaleo he school program has grown steaaiuy, ao
vending from their homes or markets. These women there are over 1 million pupils enrolled in son
DorrowersS often had very littie inventory because scho y With over teachers. Iherc ale
ney coula anora to hold Iittie; thus their sales about students in BRACS prepmnay
would be so low that they COuld afford no more program.
inventory the next day.
Du peopiestuck n woTKing-capital poverty traps thatched roof; others are bamboo-rame s at
may race several otner ypes or poverty traps at the sheets for walls ana root.
same time. Thus, BRAC has designed a strategy that hung from the roof. Lessons and papen nd the
it calls niicrocredit-pluS-plus to convey the scope of its on the walls. The children typicay
periphery of the room. In addition to lessons, all To bring needed services to the poor, BRAC has
are expectect to participate in recitations, traditional had to innovate. Many or BAS proßrs, etu
dances, and other engaging activities,
ng ts icrocredilplus, nontormal primary edtu
Nearly ail the teachers (about 97%) are village cation, health, and legal education programs, nave
women Who are trained and supervised by pro- been emulated in other countries, iougn not yet
th
Tessional statt. They are required to have had nine the same scale. 5RA continues tO novare wt
yearsoeducation less than required by public new ventures such as the largeung ue tapuu
Outside evaluators of tho Deg tatught. program
that the quality of teacher suDericio d e depicts DKA as a "iearning orga
keys to the program's cons
professiornals-based program desion koooe
d quality high while providing useful employment descril
for viliage women who have obtained somewhat funders and others about the organization s ralnares
more educaton
The eatcation pro8ram has evolved over the years tions. Of course, being able to explain tne caus
to retiect the changing needs of the rural poor. At first, of failure convincingly, made posSible by carerul
the program lastea three years, usualy between the investigation, and offering credibie next Steps ttdt
ges or 8 ana ms was a year or two later than stu- put into practice the lessons learned trom ranre
dents start puDlic school; the reason for this, BRAC were necessary conditions for geting rurtner una
offnaals explain, 1s to 1dentily students who would for ing under such circumstances. ucess stoes Ca
some reason likely never start public school or would helpful, but so can failure stories. Smilie descriDes
drop out almost immediately. 1he greatest empha several, such as the purchase or poory
SIS IS on literacy ana umeracy, health and hygiene, motorcycles fromhina and ventures su P
basic science, and social studies. The program was duction of silk, tubewells, and pumps. his non
designed in part to establish a foundation from which esty and behavior as a learning organizauon were
students could enter the fourth grade of the public both effective and of great appeal to donors, wno
school system. There is also a system of basic educa- provided critical resources to implement what had
tion for somewhat older children, aged 11 to l4
In , the schools expanded to a four-year pro tions, including smaller ones, Provided rundis tor
ram, covering the nve year primary curricum n experiments, ana larger funders helped brin8 Suc-
less time. This redesign was in response to the large cesses to scale.
number of BRAC graduates interested in continuing Though one can question how it is possible for
their education at the secondary level. BKAC says BIAC to do sO many things without losing its man-
that today more than 9U7o Ot its graduates contnue agement aisepline and poverty tocus, BRAC can
in the formal systet.
BRAC is also well known for its heaith care tence or donors tnat it become more self-sufficient.
innovations and programs. Here, too, BRAC sea Ana rauer than charge the poor for full cost recov
paraproressionals from the Villages n wnich 1 ery or Dusic mecical and other services for the
works-for example, in large-scale activities sucn poo, as the aevelopment agencies advised in earlier
as the directly observed treatment short course years, DEAC ViewS it as a better option to subsidize
(DOIS) tor TB and training for oral rehydration services 1or the desperately poor with profits from
tnerapy (ORI). The DO1S program exemplihes the productive enterprises that themselves provide
rOles in BlRAC of monitoring and evaluation, wait employment anct 8tarantee inputs that poor farmers
8 ntl aprogram iS working smoothiy and showS neca ana neip nna markets for the products of the
Clear evidence of positive impact betore replicating pare very Strong penalties for unethi-
t 50 as to reach a very wide population. BRAC thern cal Denavio, and DRAC 1S considered to hold to
POceeds to relentlessly work to reach a very wide an unSLaly ngh standard ot probity However, it
Ppulaton, a procesS known as "bringing to scale. 15 aiicuit tor an Outsicer to be sure where all the
lie
David Korten as saying that
BDACeomes as near to a pure exanmple of a learn
A ing orcanization as one is likely to find. Smilie
markable cases of BRACS honesty to
rather than the usual defensiveness ana xaB8ea
Deen Tearned. Smilhe reports that some founda-
hardly be blamed for taking so sernously the ims
cross-subSiaics are 8oing under the cuTent systerm and nome Jeave evey six months, but "they a
of accounts.
under the cunert y l naid on the basis of their Bang adeshi salari
SS nas beeEn the rugn quaityot BRAL management. otner agenceSD as oien0rstrated that it ca
nent thrive inside and outside Bangladesthy it remains to
Ohe ot trhe most important tactors in AC's suc- so BRACs statt costs are any n comparison with
talents in the country, and BRAC has been able to be seen how many other developing-country
managers from NCOs can gonatonal Scope, and
Abed is one ot the mst ble to
ntry-based
recruit many otner n at
all sectors of Bangladesh. It seems that BRAC 15 so even eventually g0 gobal
much better than management in the private sector
BRAC faces several cnalicnges. S BRAC's first
le to find untapped generation of tounders rers, placements must
better than mag to find untapped have the same special comioination
that it has repca from them. (This is true and commitment As BRA continuessto not j The most effective scope tor a TOw and diversily 1t will Contont management PPOTuties dna ther leading NCOs such as of talents and commitnent. As BKA continues . the Grameen Daln
COmpany aepunas not just on the sype ot acavits t prODIETs hat woula prove cialienging n any envi
Pea tr If one organization s taient
the management skills available ronment, Dut paricliany Tor a Poverty-tocused
ue rest O ne county. ir one ogalnlzation s talent orEanizanon operaun5 n rlial areas ot low-income
Sugn wne tat of 1s competitors Is low, one com nation5. But BRAC nas consistentiy served as a
pany or GO Can palriapate n many actvities that pioneer, botn in nnovanon or specincC programs an
u wO corsarute arn inenaernt in widenung the vsion ot evelopment practitianers
Cstracdion away rom is core competencies. But around the world about thepossible range and scope
no hint of a negative attitude toward for the work of NGOS in developing countnes te sector at BRAC; instead, BRAC is actively ter its erowth. DA worcing ricing to improve the efficacy of gov ne Grameen Bank of Bangladesh Making Microfinance Work for the Poor: s well. For example, although the public One of the major obstacies tacin5 e poor alna
hols are in some sense competitors of its education those not far above the POvy schools
BRAC is working actively with interested credit (see Chapter 15). Ihe Grameen Bank of Ban-
nt officiais to infuse the public schools with gladesh is an excellent illustration ot how credit can
be provided to the poor while minimizing the risk
BRAC has established a that resources will be wasted. Micronnance insatd
university, a bank, and a program for assisting pn tions (MFIS) targeting the poor such as the Grameen
vate small and medium-size enterprises. Finally, it Bank have expanded rapidly throughout the deve
has established international attilates In A'gnanl- oping worid sirnce the 19BUs. But nowhere has this
stan, Sn Lanka, Uganda, southern Sudan, lanzan1a, expansion been more striking than in Bangladesh,
Pakistan, Siera Leone, and Liberia. Launched in which has been transtorming itselt from a symbo
June , BRAC Jganda is aiready one of tne lar8 or talnine to a Symbol or hope, due in part t0 tne
st NGs in that counry, wor king in micronnance, success of its MiFis.
primary education, health, and agncuirure. Most
staff are Ugandan national
Muhammad Yunus conceived of the Gramen
Bank in the miwhen he was a nittagos
The low cost of BRACS activiies in Amica is University economics protessor. Yunus nad oe
remarkable; for the case of Azania, Smilie describe convinced trom his research that the lack or ace
now thne organisation saves money while maintain- to credit on the part ot the poor was one Or ue
mg qualiy. FHe notes that staft all are "experienced, constraints on their economic proO8ress, a
topic processionals in their fields."He stresses sion that has been supported by later studles
trat RALS Overheads are runuscule in com- around the developing worid. unus wa
paristn to gther intemationat NGOS because all demonstrate that it was possible to lend to r
ot theiy statt lives together in shared accommoda- without collateral. lo determine the besty n
Luon, and they do not bring their families with them. doing so, he created the Grameen Bank as an a
15lalt get SiZable premiums tor working abroad and research project." Today the Gravamen Dale
country-based development NGOS in the world, has developed high-impact and widely emulated
both based in Bangladesh but with global reach: program innovations in education, nutrition, health,
and other fields
BRAC, a quintessential multidimensional develop-
men organisation, and Gravamen Bank, like BRAC By sclegal rights, advocacy, and Internist Dsome measures, DkA 1s now the largest
a microtinance pioreer that has engaged in other NGO in the world. BRAC'S activities contribute innovative initiatives
more than halt of 1% of Bangladesh's GDP. As of
BRAC had over employees, making
it the country's second-largest employer Just over
BRAC, preyiously known as the Bangladesh Rural half of BRAC employees are primary teachers in its
Acvancement ommittee, is an extraordinary NGO widely emulated nonformal BRAC Education Pro
wnose mssiOn 15 poverty reduction. 1The BRAC gram. While BRAC programs such as "microcredit
moce lumunates how omparative advantages plus" have been widely replicated in other coun-
of NGOs can function to support poverty reduc- tries, none operate on BRACE SCale. 5Ac IS a
tion and illustrates conditions under which NGOs complex organization, with over 8 million grass-
extend ther activities in the face of deficiencies of rootsmembers (usually one woman per household)
government and private-sector actors. BRAC is and over 6 million microfinance borrowers. These
consistently ranked as among the top-rated NGOs members participate in BRAC's basic units, the
in the world, number one in a Global Journal Village Organisation (VO). There are nearly
Vs, each consisting or 35 to 50 women trom a
BRAC was founded in the early s to aid dis- village or neighbourhood. BRAC currently works
placed persons in the attermath of civil war and in most of the country's villages through a
famine. The organization's leaders soon understood system ot 14 training centers and over branch
that the problems of the rural poor were chronic oftices, with a budget of approximately half a billion
The BRAC Model
and structural, and they turned their attention to U.S. dollars
long-term development and poyerty alleviation
Onoe highly dependlent on donors, BRAC has
efforts. BRAC origi. ally operated in the rural areas responded to cionor demands for greater self-reliance.
of Bangladesh, where government is characterzed BkA 1s now more than 70% self-supporting The
Dy low capacity and hgh corTuptian. In contaist aor souirce or its internal revenue is a growing
DIAC has grown attracting runds Decauiseewo O producave enterprises that it has estab-
Or its reputation for competence, dedicatiOn, Inno* 1snea, with the twin aims of pOverty reduction and
net income generation for its poverty programs
With tens of millions of people and some regions BRAC OWns or co-owns and operates several snmalt
ot Bangladesh caught in complex poverty traps, and medium-size enterprises with the expliat aim
BRAC has had to innovate continuously to bring of direct or indirect poverty reduction as well as its
vativeness, accountability, and effectiveness.
income-generating mission. BRAC rural enterprises interrelated village programs secking to mee a var-
produce goods such as chalk, seeds, shoes, and san co povery reeong0als, AS lan Smillie sho
ary napkins. Although these are all classie prien s progs in credit, health, and
UOds, an extended rofe tor ely, they hatye
to Bangiadesh's often aysu nonfor- In Bangladesh 30.
provide assistance to victims of famine and dis- one of the major driving1oces in this transforma
placement. Soon, however, Abed and his organi- tion through its eaucation program. BRAC began
ation concluded that poverty was a chronic and establishing highly jnnovative village nonfomal
ntrenched problem, and they tumed their atten- primary schoOO1S 1n 1, n resPOnse to the needs
ion to development and poverty alleviaion. Abed and requests ot the viulageoen t whom it
nas won international recoghition for his, work, works. A major reason tts ao not send
ncluding the Kamon Magsaysay Award, the Noma their children to school is that their work is needed
Prize tor Literacy, the Feinstein World Hunger at home and on the small famiiy tarm plot to help
Award, UNICEF S Maurice 'ate Award, and the the family survive. A secona reason 1s the intimi
+ Gates I'rnze. AWare of the need for sustained dation and alienation that uneaucared parents andd
leadershiP, bRAC 1s developing a new generation their children feel in traditional school settings. A
t protessionals who contine "o innovate in poverty third is harassmernt of giris.
alleviation programs while increasing the efficiency The program structure was developed to respond
and effectiveness ot existing programs.
BRAC has helped ill the vacuum sometimes left part in other BRAC programs. BikAC schools teach
Dy 8ovenment, takng or: many or the functions ot the children ot poor, often landless families. Well
BO0d govenance-targeting public goods, provicing Ove two-thirds ot the students are giris. In the earier
common-pool.(or common-property) g00ds, and years or the pro8ram, the schools tyPlcaly ope
ndvocating ror the poor. Ihe intiuence of BRAC has ated for oniy a few hours a day so that the children
been so great that a popular saying in Bangladesh 1S can help at home and in farm or nontarm actvitie
that we have fwo govemments, the formal gover Parents decide whether classes will be held in the
ment and BRAC. Despite its siZe, BRAC remains very morning or the evening, depending the nature
lexible. When catastrophic flooding hit the country of the village s needs. Little homework asigneu,
in August , BRAC temporarily reassigned virtu- homework requirements were identified as a ma
ally its entire organiZation relier acavities
ne nchpln proBram, microinance for the poOr, BRAC hoped to make up tor shorter schoo no
Stalrted tWO years Derore the urameen bank. 1he with a higher-quality education teatuing a sig
ram is targeted to individuals owning very cantly smaller class size ot about 30 to 9,
little land and typically involved in rural nontarm teaching styles, and the care shown torte pa
activities Such as door-to-door sales and small-scaleo he school program has grown steaaiuy, ao
vending from their homes or markets. These women there are over 1 million pupils enrolled in son
DorrowersS often had very littie inventory because scho y With over teachers. Iherc ale
ney coula anora to hold Iittie; thus their sales about students in BRACS prepmnay
would be so low that they COuld afford no more program.
inventory the next day.
Du peopiestuck n woTKing-capital poverty traps thatched roof; others are bamboo-rame s at
may race several otner ypes or poverty traps at the sheets for walls ana root.
same time. Thus, BRAC has designed a strategy that hung from the roof. Lessons and papen nd the
it calls niicrocredit-pluS-plus to convey the scope of its on the walls. The children typicay
periphery of the room. In addition to lessons, all To bring needed services to the poor, BRAC has
are expectect to participate in recitations, traditional had to innovate. Many or BAS proßrs, etu
dances, and other engaging activities,
ng ts icrocredilplus, nontormal primary edtu
Nearly ail the teachers (about 97%) are village cation, health, and legal education programs, nave
women Who are trained and supervised by pro- been emulated in other countries, iougn not yet
th
Tessional statt. They are required to have had nine the same scale. 5RA continues tO novare wt
yearsoeducation less than required by public new ventures such as the largeung ue tapuu
Outside evaluators of tho Deg tatught. program
that the quality of teacher suDericio d e depicts DKA as a "iearning orga
keys to the program's cons
professiornals-based program desion koooe
d quality high while providing useful employment descril
for viliage women who have obtained somewhat funders and others about the organization s ralnares
more educaton
The eatcation pro8ram has evolved over the years tions. Of course, being able to explain tne caus
to retiect the changing needs of the rural poor. At first, of failure convincingly, made posSible by carerul
the program lastea three years, usualy between the investigation, and offering credibie next Steps ttdt
ges or 8 ana ms was a year or two later than stu- put into practice the lessons learned trom ranre
dents start puDlic school; the reason for this, BRAC were necessary conditions for geting rurtner una
offnaals explain, 1s to 1dentily students who would for ing under such circumstances. ucess stoes Ca
some reason likely never start public school or would helpful, but so can failure stories. Smilie descriDes
drop out almost immediately. 1he greatest empha several, such as the purchase or poory
SIS IS on literacy ana umeracy, health and hygiene, motorcycles fromhina and ventures su P
basic science, and social studies. The program was duction of silk, tubewells, and pumps. his non
designed in part to establish a foundation from which esty and behavior as a learning organizauon were
students could enter the fourth grade of the public both effective and of great appeal to donors, wno
school system. There is also a system of basic educa- provided critical resources to implement what had
tion for somewhat older children, aged 11 to l4
In , the schools expanded to a four-year pro tions, including smaller ones, Provided rundis tor
ram, covering the nve year primary curricum n experiments, ana larger funders helped brin8 Suc-
less time. This redesign was in response to the large cesses to scale.
number of BRAC graduates interested in continuing Though one can question how it is possible for
their education at the secondary level. BKAC says BIAC to do sO many things without losing its man-
that today more than 9U7o Ot its graduates contnue agement aisepline and poverty tocus, BRAC can
in the formal systet.
BRAC is also well known for its heaith care tence or donors tnat it become more self-sufficient.
innovations and programs. Here, too, BRAC sea Ana rauer than charge the poor for full cost recov
paraproressionals from the Villages n wnich 1 ery or Dusic mecical and other services for the
works-for example, in large-scale activities sucn poo, as the aevelopment agencies advised in earlier
as the directly observed treatment short course years, DEAC ViewS it as a better option to subsidize
(DOIS) tor TB and training for oral rehydration services 1or the desperately poor with profits from
tnerapy (ORI). The DO1S program exemplihes the productive enterprises that themselves provide
rOles in BlRAC of monitoring and evaluation, wait employment anct 8tarantee inputs that poor farmers
8 ntl aprogram iS working smoothiy and showS neca ana neip nna markets for the products of the
Clear evidence of positive impact betore replicating pare very Strong penalties for unethi-
t 50 as to reach a very wide population. BRAC thern cal Denavio, and DRAC 1S considered to hold to
POceeds to relentlessly work to reach a very wide an unSLaly ngh standard ot probity However, it
Ppulaton, a procesS known as "bringing to scale. 15 aiicuit tor an Outsicer to be sure where all the
lie
David Korten as saying that
BDACeomes as near to a pure exanmple of a learn
A ing orcanization as one is likely to find. Smilie
markable cases of BRACS honesty to
rather than the usual defensiveness ana xaB8ea
Deen Tearned. Smilhe reports that some founda-
hardly be blamed for taking so sernously the ims
cross-subSiaics are 8oing under the cuTent systerm and nome Jeave evey six months, but "they a
of accounts.
under the cunert y l naid on the basis of their Bang adeshi salari
SS nas beeEn the rugn quaityot BRAL management. otner agenceSD as oien0rstrated that it ca
nent thrive inside and outside Bangladesthy it remains to
Ohe ot trhe most important tactors in AC's suc- so BRACs statt costs are any n comparison with
talents in the country, and BRAC has been able to be seen how many other developing-country
managers from NCOs can gonatonal Scope, and
Abed is one ot the mst ble to
ntry-based
recruit many otner n at
all sectors of Bangladesh. It seems that BRAC 15 so even eventually g0 gobal
much better than management in the private sector
BRAC faces several cnalicnges. S BRAC's first
le to find untapped generation of tounders rers, placements must
better than mag to find untapped have the same special comioination
that it has repca from them. (This is true and commitment As BRA continuessto not j The most effective scope tor a TOw and diversily 1t will Contont management PPOTuties dna ther leading NCOs such as of talents and commitnent. As BKA continues . the Grameen Daln
COmpany aepunas not just on the sype ot acavits t prODIETs hat woula prove cialienging n any envi
Pea tr If one organization s taient
the management skills available ronment, Dut paricliany Tor a Poverty-tocused
ue rest O ne county. ir one ogalnlzation s talent orEanizanon operaun5 n rlial areas ot low-income
Sugn wne tat of 1s competitors Is low, one com nation5. But BRAC nas consistentiy served as a
pany or GO Can palriapate n many actvities that pioneer, botn in nnovanon or specincC programs an
u wO corsarute arn inenaernt in widenung the vsion ot evelopment practitianers
Cstracdion away rom is core competencies. But around the world about thepossible range and scope
no hint of a negative attitude toward for the work of NGOS in developing countnes te sector at BRAC; instead, BRAC is actively ter its erowth. DA worcing ricing to improve the efficacy of gov ne Grameen Bank of Bangladesh Making Microfinance Work for the Poor: s well. For example, although the public One of the major obstacies tacin5 e poor alna
hols are in some sense competitors of its education those not far above the POvy schools
BRAC is working actively with interested credit (see Chapter 15). Ihe Grameen Bank of Ban-
nt officiais to infuse the public schools with gladesh is an excellent illustration ot how credit can
be provided to the poor while minimizing the risk
BRAC has established a that resources will be wasted. Micronnance insatd
university, a bank, and a program for assisting pn tions (MFIS) targeting the poor such as the Grameen
vate small and medium-size enterprises. Finally, it Bank have expanded rapidly throughout the deve
has established international attilates In A'gnanl- oping worid sirnce the 19BUs. But nowhere has this
stan, Sn Lanka, Uganda, southern Sudan, lanzan1a, expansion been more striking than in Bangladesh,
Pakistan, Siera Leone, and Liberia. Launched in which has been transtorming itselt from a symbo
June , BRAC Jganda is aiready one of tne lar8 or talnine to a Symbol or hope, due in part t0 tne
st NGs in that counry, wor king in micronnance, success of its MiFis.
primary education, health, and agncuirure. Most
staff are Ugandan national
Muhammad Yunus conceived of the Gramen
Bank in the miwhen he was a nittagos
The low cost of BRACS activiies in Amica is University economics protessor. Yunus nad oe
remarkable; for the case of Azania, Smilie describe convinced trom his research that the lack or ace
now thne organisation saves money while maintain- to credit on the part ot the poor was one Or ue
mg qualiy. FHe notes that staft all are "experienced, constraints on their economic proO8ress, a
topic processionals in their fields."He stresses sion that has been supported by later studles
trat RALS Overheads are runuscule in com- around the developing worid. unus wa
paristn to gther intemationat NGOS because all demonstrate that it was possible to lend to r
ot theiy statt lives together in shared accommoda- without collateral. lo determine the besty n
Luon, and they do not bring their families with them. doing so, he created the Grameen Bank as an a
15lalt get SiZable premiums tor working abroad and research project." Today the Gravamen Dale
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