Evaluation of Netherlands-funded NGOs in Bangladesh Ministry of Foreign Affairs, Policy and Operations Evaluation Department (IOB) ISBN 90-5328-163-0 Photographs: Ron Giling/LINEAIR Maps and figures: Geografiek, Amsterdam Pre-press services: Transcripta, Beerzerveld Printed by: Ridderprint BV, Ridderkerk Preface The evaluation of Netherlands supported NGOs in Bangladesh forms part of a study undertaken by the Policy and Operations Evaluation Department (IOB) on the Netherlands bi-lateral aid programme for Bangladesh in the period 1972–96. The support to NGOs through the regular aid programme and through the Co-financing Programme has been important to the Netherlands’ pursuance of poverty alleviation objectives in Bangladesh. A total of Dfl. .247 million has been disbursed through these channels, some three quarters of which after 1990. The position of NGOs in Bangladeshi society is quite unique. Bangladesh is home to the largest national NGOs in the world, as well as to a multitude of middle- and small-sized NGOs that operate on a national, regional or local level. The Bangladeshi NGOs literally reach out to millions of people in both rural and urban areas. This study comprises extensive case studies of a cross section of NGOs in Bangladesh. Both the Bangladeshi NGOs that were subject of study and their partners in the Netherlands, Bilance (formerly Cebemo), ICCO and Novib, have been closely involved in the various stages of the study. The study has concentrated on the credit and training activities that constitute the mainstay of NGO programmes. It is concluded that these activities effectively target the poorer sections of the population, particularly women. The sustained success of credit and savings groups still depends largely on the presence of NGOs, most of whom in turn depend on their overseas partners. Some large credit programmes are now maturing into well-managed self-sustaining funds; the less successful act more as a safety net to the poor rather than that they sustainably alleviate poverty. IOB constitutes an independent unit within the Ministry of Foreign Affairs, responsible for evaluation of the Ministry’s policies and operations. A more detailed description of IOB is provided in Annex 1. The study was coordinated by Frans Makken (IOB) and Bert van de Putte, whilst an advisory group of external and internal experts advised on methodology and commented on draft reports. The evaluation of NGO programmes iv Preface was led by Dr David M. Todd, Social Development Consultant, whilst the fieldwork was executed under the supervision of Dr Tasneem Siddiqui of the University of Dhaka. Many other individuals, both from the Netherlands and Bangladesh, have contributed to this study; a list of their names is provided in Annex 3 of this report. IOB, however, bears sole responsibility for the report. Director, Policy and Evaluation Department Netherlands Ministry of Foreign Affairs Contents List of figures and tables xi Glossary xii Abbreviations xiii Map: General topography of Bangladesh xvi MainFindings 1 Summary 9 1Objectives,scopeandmethodsofthestudy 37 1 Introduction 37 2 Evaluation of NGO activities 38 3 Objective and key questions of the evaluation 38 4 Outline of the design and implementation of the study 39 5 Scope and limitations of the study 40 2Poverty,ruralandurbandevelopmentinBangladesh 43 1 Geography and history 43 2 Poverty indicators in Bangladesh 44 3 Gender and poverty 45 4 The structure of rural poverty 47 5 Urban poverty 48 6 The Government and poverty 49 7 Reasons for inadequate performance of government programmes to reach the poor 50 8 Assessment by NGOs of the situation of the poor 50 3NGOsinBangladesh 53 1 History and role of NGOs in Bangladesh 53 2 Major sectors of NGO operation 54 1 Poverty alleviation 55 2 Education 56 3 Health and family planning 57 4 Environmental activities 57 5 Focus on women 57 vi Contents 3 3 NGO funding 58 1 International funding 58 2 Donors and NGOs 58 4 Some perceived weaknesses of NGOs 59 5 Government views of NGOs 59 6 Support organisations 61 7 Apex organisations and networks 61 8 Government and NGOs 63 1 Policies and legal requirements 63 2 The NGO Affairs Bureau 63 3 Collaboration between Government and NGOs 64 4TheroleoftheCFAsinNetherlandsoverseasdevelopmentassistance 67 1 The early years of co-financing 67 2 Evaluations of the programme financing model 68 1 Evaluation 1980–83 by Commission de Gaay Fortman 68 2 Evaluation 1984–88 by Commission Rutten 69 3 Evaluation 1989–92 by Commission Jonkman 69 3 Individual programme evaluations 70 4 The Co-Financing Programme Impact Study 71 5 Responses to the Impact Study 72 6 Distribution of the co-financing budget 73 5TheNetherlands–Bangladeshdevelopmentcooperationprogramme 75 1 Introduction 75 2 Policy priorities of Netherlands development cooperation 75 1 Economic self-reliance 76 2 Poverty alleviation 76 3 Environment 76 4 Women in development 77 3 The Netherlands–Bangladesh development cooperation programme 1972–95 78 1 Introduction 78 2 Evolution of the programme 78 3 Sectoral focus of Netherlands development assistance 79 4 The role of NGOs 79 5 The growing importance of special programmes 81 6 Donor coordination 81 4 The Netherlands CFAs and Dutch policy agreements with Bangladesh 82 Contents vii 6HistoryandpartnershipsofNetherlandsCFAsandtheRNEwithNGOs inBangladesh 83 1 Programmes of the CFAs and the RNE 83 1 Cebemo (now Bilance) 83 2 Novib 84 3 ICCO 86 4 The Royal Netherlands Embassy 87 2 Policies guiding relations with Bangladesh partners 88 1 Policies of the CFAs 88 2 Policies of the RNE 90 3 Financing of NGO programmes 91 1 Aid categories 91 2 Funding through CFAs 91 4 Overview of Netherlands’ funding of NGOs 96 5 Selection of NGOs for participation in fieldwork 97 7CasestudiesofNGOpartnersofCebemo(Bilance) 99 1 Association for social advancement (ASA) 99 1 Background 99 2 The savings and credit programme 102 3 Findings of the IOB evaluation case study 104 4 Findings of other studies of ASA 111 5 Key findings for evaluation of poverty alleviation through NGOs 114 2 The Baitul Aman Trust 115 1 Background 115 2 Project 115 3 Findings of the IOB evaluation case study 115 4 Findings of other studies of Baitul Aman 120 5 Key findings for evaluation of poverty alleviation through NGOs 120 3 Caritas Bangladesh 121 1 Background 121 2 Programmes 122 3 Findings of the IOB evaluation case study 123 4 Results of other studies of the DEEDS programme 137 5 Key findings for evaluation of poverty alleviation through NGOs 140 4 Shaw Unnayan 141 1 Background 141 2 Programmes 141 3 Findings of the IOB evaluation case study 143 4 Findings of other studies of SU 148 5 Key findings for evaluation of poverty alleviation through NGOs 148 viii Contents 7 5 The Society for Social Service 149 1 Background 149 2 Programmes 150 3 Findings of the IOB evaluation case study 150 4 Findings of other studies of the SSS 157 5 Key findings for evaluation of poverty alleviation through NGOs 157 8CasestudiesofNGOpartnersofICCO 159 1 Bangladesh Development Society 159 1 Background 159 2 Programmes 160 3 Findings of the IOB evaluation case study 162 4 Findings of other studies of BDS 169 5 Key findings for evaluation of poverty allevition through NGOs 169 2 The Christian Commission for Development in Bangladesh 171 1 Background 171 2 Programmes 172 3 Findings of the IOB evaluation case study 174 4 Findings of other studies on CCDB activities 188 5 Key findings for evaluation of poverty alleviation through NGOs 190 3 Nijera Kori 191 1 Background 191 2 Programmes 192 3 Findings of the IOB evaluation case study 193 4 Findings of other studies of NK 202 5 Key findings for evaluation of poverty alleviation through NGOs 202 4 Rangpur Dinajpur Rural Service 203 1 Background 203 2 Programme 203 3 Findings of the IOB evaluation case study 204 4 Findings of other studies of RDRS 214 5 Key findings for evaluation of poverty alleviation through NGOs 215 9CasestudiesofNGOpartnersofNovib 217 1 Bangladesh Rural Advancement Committee 217 1 Background 217 2 Programmes 218 3 Findings of the IOB evaluation case study 222 4 Results of other evaluations of BRAC programmes 233 5 Key findings for evaluation of poverty alleviation through NGOs 239 Contents ix 9 2 The Community Development Association (CDA) 241 1 Background 241 2 Programmes 241 3 Findings of the IOB evaluation case study 244 4 Findings of other studies of CDA 251 5 Key findings for the evaluation of poverty alleviation through NGOs 252 3 Proshika Manobik Unnayan Kendra 253 1 Background 253 2 Programme 255 3 Findings of the IOB evaluation case study 257 4 Results of Proshika Impact Assessment Survey Report 266 5 Key findings for the evaluation of poverty alleviation through NGOs 267 10CasestudiesofNGOpartnersoftheRoyalNetherlandsEmbassy 269 1 Shakti Foundation 269 1 Background 269 2 Programmes 269 3 Findings of the IOB evaluation case study 271 4 Findings of other studies of Shakti 275 5 Key findings for the evaluation of poverty alleviation through NGOs 275 2 Sheba 277 1 Background 277 2 Programmes 277 3 Findings of the IOB evaluation case study 278 4 Findings of other studies of Sheba 282 5 Key findings for the evaluation of poverty alleviation through NGOs 282 3 UBINIG 283 1 Background 283 2 Project 283 3 Findings of the IOB evaluation field study 289 4 Findings of other studies of Ubinig weavers project 292 5 Key findings for the evaluation of poverty alleviation through NGOs 293 11EvaluationoftheprogrammesofNetherlands-assistedNGOs 295 1 Policy relevance 295 1 Introduction 295 2 Policy priorities of Netherlands’ development