pprc newsletter · professor nurul islam was the first planning commission chairman in an...

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PPRC Newsletter Issue 2 January 2015 Message from Chairman The PPRC interns have done a splendid job in helping to launch the PPRC Newsletter. The lead article in this second instalment is on the highly topical issue of governance. The article draws on the first of the planned annual report series on the state of governance that was launched in early 2014. A second article looks at innovative use of Zakat for supporting sustainable livelihoods of the poor. As we say goodbye to 2014 and welcome 2015, we at PPRC are looking ahead to an exciting year of new activities and challenges. In April, 2015, PPRC with the support of national and international partners will be hosting an international conference on the challenges and the way forward on realizing the goals of universal health coverage (UHC). In partnership with WWF, PPRC will be preparing a strategic document on emerging water scenarios and attendant economic risks. We shall also be taking forward our partnership with BBS on urban statistics and plan to host an international conference on urban poverty. Details of these and other PPRC initiatives can be seen at our upgraded website ( ). One of our www.pprcbd.org key motto is relevant research for relevant action. We welcome your feedback to help keep us engaged on this mission. - Hossain Zillur Rahman Photo: Tanzib Ahsan.

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Page 1: PPRC Newsletter · Professor Nurul Islam was the first Planning Commission Chairman in an independent Bangladesh. Working closely ... bribery and inefficiency (in performance and

PPRC NewsletterIssue 2 January 2015 Message from Chairman

ThePPRCinternshavedoneasplendidjobinhelpingtolaunchthePPRCNewsletter.Theleadarticleinthissecondinstalmentisonthehighlytopicalissueofgovernance.Thearticledrawsonthefirstoftheplannedannualreportseriesonthestateofgovernancethatwaslaunchedinearly2014.AsecondarticlelooksatinnovativeuseofZakatforsupportingsustainablelivelihoodsofthepoor.Aswesaygoodbyeto2014andwelcome2015,weatPPRCarelookingaheadtoanexcitingyearofnewactivitiesandchallenges.InApril,2015,PPRCwiththesupportofnationalandinternationalpartnerswillbehostinganinternationalconferenceonthechallengesandthewayforwardonrealizingthegoalsofuniversalhealthcoverage(UHC).InpartnershipwithWWF,PPRCwillbepreparingastrategicdocumentonemergingwaterscenariosandattendanteconomicrisks.WeshallalsobetakingforwardourpartnershipwithBBSonurbanstatisticsandplantohostaninternationalconferenceonurbanpoverty.DetailsoftheseandotherPPRCinitiativescanbeseenatourupgradedwebsite( ).Oneofourwww.pprcbd.orgkeymottoisrelevantresearchforrelevantaction.Wewelcomeyourfeedbacktohelpkeepusengagedonthismission.

-HossainZillurRahman

Photo:TanzibAhsan.

Page 2: PPRC Newsletter · Professor Nurul Islam was the first Planning Commission Chairman in an independent Bangladesh. Working closely ... bribery and inefficiency (in performance and

Editor:HossainZillurRahman

Articlecontributionsfrom:HossainZillurRahman

Photocontributionsfrom:DarshanChakmaTanzibAhsan

Editorialteam:ShaerReazTanzibAhsanUmamaZillurJoyantaKumarPaul

Website:www.pprcbd.org

Email:[email protected]@pprcbd.org

House77A,Road12A,DhanmondiR/ADhaka1209,Bangladesh

Tel:+880‐2‐8119207,9146618Fax:+880‐2‐8144379

Contributors

PPRC events

People

WaterEconomicsexpertNityanandaChakrabartiandBUETProfessorRezaurRahmanindiscussionwithPPRCteamonWWFrequestforaneconomicriskanalysisonemergingwaterscenariosinBangladesh

PPRClaunchesdisabilitystudyinpartnershipwithDRRA(nationalNGO)andCBM(internationalNGO)–orientationtraining.

(28October,2014)

HossainZillurRahmanmoderatessessionon“WhyScienceMatters”,withpanelistsLucyHawking,MarcusduSautoyandZafarIqbalattheHayFestivalDhaka2014.(21stNovember2014).

Contact us

www.facebook.com/pprcdhaka

PPRCChairmanaddressesinternationalconferenceonsocialprotectioninDar‐esSalam,Tanzaniaviavideolink‐upatUNICEFoffice,Dhaka.

(15December,2014)

PPRCreportHilsaandHilsaFishermenwas launched at the JointBangladesh‐IndiaIUCNEFLseminarattheDailyStarAuditorium, Dhaka. Later the Indianpartners from WWF, Kolkata visitedPPRCoffice.

(2December,2014)

On the cover: The National Parliament Building, (Sangsad Bhaban), an architectural marvel designed by Louis I. Khan, stands tall and proud, lit by an orange glow at night. But is it a place of effective debate and policy-making, or is it just another hollow modern architechtural feat?

NewlookPPRCstaff,withtheirnewuniforms.

PPRCteamvisitsFriendsStylewearfactory,GazipurforRMGworkershealthplansurvey.

(November,2014)

Page 3: PPRC Newsletter · Professor Nurul Islam was the first Planning Commission Chairman in an independent Bangladesh. Working closely ... bribery and inefficiency (in performance and

Aretoday'seconomicsstudentsmissingoutonbetterknowledgeofBangladesheconomy,itshistoricalbackgroundandemergingchallenges?Students,teachers,alumniandGuestofHonourProfessorNurulIslamgrappledwiththeanswersattheOpenDialogueorganizedbyDUEDAAandDeptofEconomicsatMuzaffarAhmedChowdhuryauditorium,SocialScienceBuilding,DhakaUniversityon13thNovember,2014.ProfessorNurulIslamwasthefirstPlanningCommissionChairmaninanindependentBangladesh.Workingclosely

withtheSheikhMujibledgovernmentthrough1972to1974,hewasanintegralpartoftherebuildingofanewlyliberatedBangladeshtornapartbyabloodywar,andhelpedsetdownthelawsandregulationsonwhichthecountrystoodsinceindependence.CurrentlylivingintheUnitedStates,hisfaceisnotseenoftenregardingtheBangladeshiperspective,andthroughtheopendialogue,themaingoalwastoletsomeofhisvastknowledgeandexperienceruboffonthebuddingeconomistsoftomorrow.Withtheevent,DUEDAApresidentHossainZillurRahmanwantedtograbtheopportunitytooutlineaseriousquestion

aboutthefutureofeconomicresearchandanalysis,whetherpolicymakersinBangladesharetooconcernedaboutthewrongfactorsandindicators,andhowweareplanningonaddressingtheproblemsahead.Anopendiscussionontheeconomicandsocialchallenges,hehoped,wouldbringouttheproblems,andpolicymakerswouldbeonestepclosertodeterminingeffectivesolutions.ChairedbyProfessorM.A.TaslimandmoderatedbyDUEDAAPresidentDr.HossainZillurRahman,thelivelyinter‐

generationaldebatequestionedprevailingqualityofeducationwiththefocusoneconomics,conflictingburdensimposedbyrisingexpectationsatpersonalandsociallevelsandtheneedforqualitypolicy‐makingtoaddresstomorrow'schallenges.Membersoftheaudienceraisedtheissueofthenumberofjob‐seekersoutnumberingthenumberofaspiringacademics,sayingitisadifficulttask,gettingyoungmindsinterestedandinquisitiveaboutresearchandanalysis.SpeakerssoundedacautionarynoteonadoptingatoocomplacentnarrativeonBangladesh'seconomicprogressandthe

needtofocusonrisksonthehorizon,sothatBangladeshcanstayabreastofeconomicandfinancialthreats.ProfessorIslamstressedthesignificanceofaneducatedandmotivatedmiddleclassfortakingthecountryfurtherforwardbutquestionedwhetheradequatepressureshadyetaccumulatedfortransformativechanges.

Professor Nurul Islam in dialogue with Econ students

PPRC News

Page 4: PPRC Newsletter · Professor Nurul Islam was the first Planning Commission Chairman in an independent Bangladesh. Working closely ... bribery and inefficiency (in performance and

Jean Tirole winsNobel Prize in Economics

Exploratory dialogue on launch of annual report on Bangladesh Strategic Scenario

December6,2014,PPRCLawn,Dhaka

Withregionalstrategicscenariosrapidlyassumingneweconomicandpoliticalcomplexities,PPRCorganizedaninformalbrainstormonDecember6,2014initslawnonthepossibilityoflaunchofanannualreportseriesonemergingstrategicscenariosforBangladesh.Asmallcoregroupofeconomists,IRandnationalsecurityexperts,formerdiplomatandjournalistparticipatedinthesessionmoderatedbyPPRCChair.Thefirstintheplannedannualseriesisexpectedin2015.

WithsupportfromTheRockefellerfoundation,PPRChasbeenimplementingatwoyearpolicyandadvocacystudyonpromotingUHCgoalsandidentifyingwaysforwardforBangladesh.Astheculminationofthestudy,PPRCisorganizinganinternationalconferenceonthesubjectonApril9‐11,2015attheRadissonBluWaterGarden,Dhaka.TheWorldBank,BangladeshDiabeticAssociation(BADAS),GonoShayasthoKendra(GK),NationalInstituteforPreventiveandSocialMedicine(NIPSOM),AssociationofMedicalEducation(AME),CenterforInjuryPreventionandResearchBangladesh(CIPRB)andCentreforExcellenceonUHC,BRACUniversityhavejoinedasconferencepartners.The11themesoftheconferenceincludeDilemmasofCare‐Seeking,Qualityofmedicaleducation,Urbanizationandinequitiesofcare,Governanceandethics,Costofhealthcare,Financinghealthcare,Leveragingtechnology,Dataandindicators,Overcomingdisabilities,PreventionandhealthylifestylesandDeliveryinnovations.Acallforabstractshasbeenissuedandregistrationisopenonline.Details:conferenceflyer/ourwebsitewww.pprcbd.org

PreparatorymeetingonUHCinternationalconference

Toobtaincopiesofourpublications,pleasecontactthePPRCoffice at House 77A, Road 12A, Dhanmondi R/A, or call01552342291formoredetails.

Wealsostockcopiesofourolderpublications.Thetwoarticlesfeatured in this issue of our newsletter are from thepublication “Bangladesh Urban Dynamics.” If you areinterestedinreadingthefullarticlesandmuchmore,pleaserequestacopyofthepublication.

Our recent publications:

Mini dialogue on role of polytechnics

PPRCsupportsChittagongResearchInitiative(CRi)inorganizingmini‐dialogueontheroleofpolytechnicsinskilleducation,CRiseminarroom,Chittagong,December20,2014

Page 5: PPRC Newsletter · Professor Nurul Islam was the first Planning Commission Chairman in an independent Bangladesh. Working closely ... bribery and inefficiency (in performance and

In2013,thestateofgovernanceintheBangladeshCivilServicehasdisplayedfeaturesofpoliticization,wrongdoing,incompetence,inefficiencyandcorruption.Thecivilservicehasalongrecordofmismanagement.Thesefeatureschallengedthecivilservicetoestablishacitizen‐centricbureaucracybuildingonmerit,neutralityandprofessionalism.Itissufferingfromthedisastrousfailureofprovidingexpectedleadershipandapoliticalroleinthecountry.Currently,briberyandinefficiency(inperformanceandservicedelivery)isprominentandtheBangladeshgovernmenthasdonelittletopunishthewrongdoers.There'sheavypoliticizationofcivilservicebythegovernmenttoaccommodatepartyadherentsandfamilymembers.

Thereissmallscopeofpromotionforthosewhodonotnecessarilysharetherulingparty'sideology.Forcedretirements,administrativeharassmentthroughdepartmentalproceeding,under‐employment(postedinalowerposition),beingstationedinaremotearea,areallsystematicmeasuresofharassingthoseofficialsdeemeddivergentfromthegovernment'sideology.Ontheotherhand,promotions,keypositionsandspeed‐moneygeneratingpostsaregiventothosecivilservantswithpoliticalaffiliationwiththerulingparty.Overtheyears,politicalopportunismamongcivilofficershasreachedastagewheretheyarenowseenattendingthegovernmentparty'spoliticalprocessionsandmeetings(TheProthomAlo,March3,2012).Civilservantsfrequentlytendtolobbytobepostedtopositionsofpower‐mostlyintendingtomisuseitforpersonalgain.Currently,'OfficersonSpecialDuty'(OSD)arehighestinnumbercomparedtoanyotherearlierdemocratic

governments.AsofJune2012,some562officerswereOSDsandasaresult,theywerenotabletowork.Manymoreweredeprivedofpromotionsandproperplacementsbasedonthesamecriteria;althoughkeepingthemidlewascausingthegovernmentanexpenditureofthreehundredmilliontakaperyear(Ahmed,2012).

Governance challenges of the bureaucracy

A PPRC report

Thefullversionofthisarticlewaspublishedin“GovernanceTrendsandPerceptions”,apublicationbyPPRC,in2014.

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Retributivemeasuresareoftenintroducedtodemeanthosecivilservantswho'relesspoliticallyinclinedtowardstherulingparty.Forexample,attachinganOSDemployeetoaMinistrywhereheorshedoesnothaveanyspecificjoborproperposition.Inmostcases,he'sassignedalessresponsibleduty.Anotherformofharassmentincludes,placinganemployeeunderMinistryofPublicAdministration(MOPA)inthenameoffurtherposting,andinmanycases,lengtheningthewaitingperiodforanindefinitetimeperiod).Interestingly,duringthistime,anemployeedoesnotgetanykindofsalariesandwages,trainingorleave,whichputshimunderseverefinancialandpsychologicalstress.Majorityofthesecivilservantsaredeprivedfromcompulsoryornecessaryhousing,foreigntraininganddevelopmentprograms.Generallytheyarenotallowedtotakeex‐Bangladeshleave(exceptafewcasesfortreatmentandreligiouspurpose),nolien,nosittingarrangements,noinvitationstoanyofficialmeeting,andnoconsultationaboutanynationalandinternationaleventsordays.Thereisnodefiniteguidelineand

policytodeterminewagesandsalariesforthecivilserviceemployees.Oftenthepartyinpowerusesthisissuefortheirpoliticalgain.Itisevidentthatthereisalackofstandardisationofwagesandsalaries,rightsandprivilegesofallcadresofthecivilservice.ThePublicServiceCommission's

(PSC)suggestionsintermsofcivilservicewerelargelyignoredbythegovernment.ReviewsofseveralannualreportsofPSC(2008to2011)showedthatPSCadvisedintheAnnualConfidentialReport(ACR)ofacivilservant,thatifthereisnoadversecommentandtheoverallevaluationis'AverageorAboveAverage'thanheorshewillbeeligibleforpromotion.ButPSCfoundthatoftenacivilservanthasbeendeprivedofapromotionalthoughheorshehasexcellentremarksintheACRwhilemanycivilservantswerepromotedeventhoughtheygotadversecommentsintheirACR.Itwasfoundthatmoreurbandwellersarecomingtoprovidecivilservicethroughthe

PSCexaminationcomparedtoruralcitizens.Thus,an'educationdivision'wasobservedintheselectionprocessofthePSC.Thereisnogovernmentpolicyinpracticetoavoidthisgap.Thereviewofthereportsalsoindicatesthatmale:femaleemploymentratiointhecivilservicehasfallenovertime(Table1).

ThePublicServiceCommissionhasbecomeheavilypoliticized;briberyisatlargeandnepotismalsoplaysaprominentrole.Younggraduateswithgoodacademicbackgroundsdonotoptforjoiningthecivilservicebutratherchoosetojointhecorporateworldorleavingthecountry.ThereareoftentalksofquestionpaperleaksfromthePSC.Forexample,the33rdBCSexaminationwaspostponedbecauseofaquestionpaperleakwhichhastarnishedtheimageofthePSC.

“Thereissmallscopeofpromotionforthosewhodonotnecessarilysharetherulingparty'sideology.Forcedretirements,administrativeharassmentthroughdepartmentalproceeding,under-employment(postedinalowerposition),beingstationedinaremotearea,areallsystematicmeasuresofharassingthoseofficialsdeemeddivergentfromthegovernment'sideology.”

Page 7: PPRC Newsletter · Professor Nurul Islam was the first Planning Commission Chairman in an independent Bangladesh. Working closely ... bribery and inefficiency (in performance and

Recently,eventhoughthegovernmenthassaidthattheyareenactingthe'CivilServiceAct'tomeetthecitizens'expectations;unfortunately,thisActhasnotyetseenthelightandiswaitingforapproval.ThePublicServiceCommissionhasadvisedthegovernmentthatintegrity,honesty,objectivityandimpartialityshouldadequatelybeconsideredinthewayofenacting'TheCivilServiceAct'andthegovernmentshouldconsultthePSCbeforeenactingit.Abolitionofthequotasysteminthecivilservicerecruitmentpolicyisnowapopulardemand.Thegovernmenthas

createdquotasevenforthegrandchildrenoffreedomfighters.Inthelastfewyears,manyprocessions,rallies,andprotestshavebeencarriedoutbythepotentialcandidates.Civilactivists,politicalthinkers,academiciansarealsotalkingaboutabolitionoratleastarevisionofthequotasystemofthecivilservicerecruitment.ThePSChasalsosuggestedsimplifyingthequotasystemintherecruitmentprocess.Asidefrompoliticalideologies,factionalismordiscriminationbasedonhomedistrict,race,religion,gender,etc.is

alsoquiteprominentlypresentintheprocessofrecruitment,postingandpromotioninthegovernmentsector.Thus,publicservantsarenotremainingpoliticallyneutral.Regionalism(regionalprejudice)inpublicservice:Officials,whoarefromthesamehomedistrictasimportant

governmentofficials,tendtoreceivegreaterworkplaceprivileges.Forexample,withtheAwamiLeagueisinpower,manypublicservantsfromGopalgongoradjacentdistrictshavereceivedrecruitmentsandpromotionstokeypositionsandotheradministrativeprivileges.Also,whenBangladeshNationalistParty(BNP)wasinpower,publicservantsfromBograandadjacentdistrictsreceivedsimilartreatment.Thusthepresentgovernmenthascreated2,51,975posts(TillDecember2012)(9thParliament16thSession,2013).Thoughtherearearound59609vacant1stand2ndclasspositions(9thParliament8thSession,2011).Surprisingly,theMinistryofPublicAdministration(MOPA)anditssubordinateofficeshave6440vacantposts(StatisticsofCivilOfficersandStaff,2010publishedin2012)(9thParliament13thSession,2012).Thegovernmenthasquiteoftenbeenaccusedofusinglawenforcingagenciestofindoutthe'party‐loyal'andsort

outthe'disloyal'civilservantstogivepromotionsandplacements.ThepresentgovernmenthasamendedThePublicServants(Retirement)Act,1974andhasincreasedtheretirementageofafreedomfighteremployeeto60andothers(non‐freedomfighter)to59(9thParliament16thSession,2013).Moreover,thePromotionpolicynamed'TheDeputySecretary,JointSecretary,AdditionalSecretary,andSecretary,2002'isnotwell‐circulatedandhascreatedgrievanceamongthedeprivedcivilservants.Thepresentgovernmenthastaken

initiativestointroducee‐governanceinthecivilservice.Forexample,64districtadministrationshaveweb‐portals,digitizedformsandselectede‐servicesavailable.Thegovernmenthasalsointroducedonestopgovernmentservicesinseveralpublicofficesforexample,e‐payment,e‐TIN,etc.Inrecenttimes,therehasbeenafrequentinterferingdirectionfromhighercourts'regardingabsoluteexecutivefunctionaries,whichunderlinesthelackofefficiencyandcapacityofcivilservants.Thegovernmentwouldbebetteroffencouragingneutralityandhonestyamongcivilservants.Therecruitmentanddevelopmentofcivilservantsshouldbebasedonmeritandnotonpoliticalloyalty.Contractualappointmentinthecivilservicehasincreased.Forexample,currently49peopleareworkingassecretaryoradditionalsecretaryonacontractualbasis(9thParliament18thSession,2013).Thegovernmentdoesnothaveanyplantostopcontractualappointmentinthecivilservice(9thParliament8thSession,2012).Thegovernmentisusingcontractualcivilservantsasapoliticaltool.Thetrendofgoingoverseasforhighereducationhasincreased.Butalargenumberofthesestudentsdonotcome

back.Thus,Bangladeshisbeingdeprivedofapoolofwestern‐educatedandacademicallysoundjobcandidates.Butthereisnoinitiativeorprogramtoattractandretainthesestudentsandpreventbraindrainage.

Photo:TanzibAhsan

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Newinitiativeonfinancialempowerment

Bangladeshhasbeenwitnesstoaplethoraofanti‐povertyinnovationssomeofwhichsuchasmicro‐creditandconditionalcashtransfershavegoneontowincriticalglobalacclaim.Whilethesehavecontributedtosignificanttransformationofpovertyrealities,thescourgeofextremepovertyisfarfrombeingeliminated.ItisthereforehearteningthatBangladeshcontinuestowitnessnewereffortsatanti‐povertyinnovations.Anewfrontierinsucheffortsisthemobilizationoffaith‐basedsystemssuchastheIslamicsystemofzakat.

Traditionallyzakatandthecompanioninstrumentofsadaqahhavetakentheformofindividualcharityaimedatprovidingsomeformofimmediaterelieftotherecipients.Thepossibilityofpoolingsuchsupportfororganizedinitiativesaimedatsustainablechangesinrecipient'seconomicvulnerabilitieshasnotbeenadequatelyexplored.Aninterestingexampleandapossibletrend‐setterinthisregardisthe2011zakat‐basedJeebikaKarnaphuliprojectthatisbeingimplementedinapoorriver‐sideneighbourhoodontheeasternoutskirtsofChittagongcitysince2011.PowerandParticipationResearchCentre(PPRC)recentlyundertookanevaluationofthisongoingprojectforanindependentassessmentofitsinnovationpotential.TheassessmentwasundertakenwiththesupportoftheA.K.KhanFoundation(AKKF)andtheCentreforZakatManagement(CZM).

Distinguishingfeatures

Thoughrelativelysmall‐scale,theJeebikaKarnaphuliMohoraprojecthasanumberoffeaturesthatmarksitoutasdifferentfromthegenerally‐knownmicro‐financemodel.Beneficiariesareprovidedwithafive‐foldstakeintheproject:EquitycapitalintheformoftheZakatandCSRallocationforeachbeneficiarythatformspartofagroupequityheld

inabankaccount·Accesstoarevolvingfundformicro‐loans.Thebeneficiarygroup'spooledequitycapitalconstitutestherevolving

fund.Eachmemberofthegrouphastheoptionofapplyingforamicro‐loanasperthefamily'sneedwiththeprovisionforpayingaservicecharge/interestasintheregularmicro‐financemodel·Groupprofitaccruingfromtheinterestchargedforthemicro‐loanswhichaccumulateinthegroupbankaccount.

Thissecondaryincomestreamisearmarkedforequaldistributiontoeachmemberofthegroup.·Socialsectorsupportcoveringeducation,health,water,sanitationandhomegardening.·Capacitybuildingonmanagement,leadershipandenterpriseskills.

BudgetandCostEfficiency

Therearethreebroadbudgetitemsintheproject:i)Capitaltransfertobeneficiariesii)Capacitybuildingandsocialsectorsupportandiii)Implementationcost.Theimplementationcostisfurthersub‐dividedintotwocomponents–thecostfortheorganizedtransferofthezakattothebeneficiarybankaccounts(completedwithintheinceptionphaseof

Innovations in financial empowerment

Hossain Zillur Rahman

Zakat for sustainable livelihoods

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6months)andthecostforimplementingthefollow‐uplivelihoodproject.Thelargestbudgetaryitem–54.7%‐isthecapitaltransfertobeneficiaries.Anadditional22.7%coverscapacitybuildingandsocialsectorsupporttothebeneficiaries.Thetwotogetherindicatethat77.4%oftheprogrambudgetconstitutesdirectsupporttothebeneficiaries.

ProjectImpact

Impactoftheprojecthasbeencapturedintermsofindicatorsofeconomicempowermentandqualityoflife(Figures2and3).Overthethreeyearprojectperiod,incomeroseby80percent,andexpendituresby26percent.Therewasalsosignificantcapitalaccumulationthatincludeda)Taka20,000transferredattheoutsetaszakatcontribution,b)Tk.2177savedonaveragebyeachbeneficiaryoverthethreeyearprojectperiodandc)Tk.3118accruingtoeachbeneficiaryasshareinthegroupprofitfromtheoperationoftherevolvingfund.Qualityoflifeindicatorsalosshowedmajorimprovementsintermsofhousing,sanitationanddiets.Projectimpactwasnotonlyevidentintermsofsuchindicators.

FGDswithbeneficiariesalsobroughtoutmorequalitativeaspectsofimprovement.Livinginaperi‐urbanareaandexposedtoNGOmicro‐creditactivitiesforlong,thebeneficiariesalreadyhadaccesstofinancebutfeltinadequatelyempoweredbysuchaccess.MembershipintheJeebikaKarnaphuliMohoraProjectwasjudgedasprovidingnotmerelyaccessbutfinancialempowermentinamoresubstantivesense.Fourfeaturesweresingledout:i)provisionofzakat‐basedequitycapitalintheformofthemember'sshareinthegroupfundwhichservedastherevolvingfundii)nohiddenchargesintheprovisionofmicro‐loansintheformof5%deductionforcrisisfundorforcedsaleofinputsiii)moresupportiverepaymentcultureandiv)alessbureaucraticmanagementprocess.Duetothesedistinctivefeatures,therehasbeenawholesaleexitbyProjectmembersfromconventionalNGOmicro‐creditaswellasfrommohajoni(highinterestmoneylender)loanmarket.MembersclearlyfeltJeebikaKarnaphuliMohoraProjectloanswasprovidingbettervalue‐for‐moneyenablingthemtoretainasmuchas30%oftheearningsgeneratedbysuchloans.Theotherimpactwasonreducingthestructural

disadvantagesofmarketparticipation.Typicallythesefamiliesengagedinfishingandbamboo/caneworkshadtodoadvancesaleoftheirproducttofinancetheloansneededforprocuringtheinputs.Theywerethusatadoubledisadvantage–procuringinputsonunfavorabletermsaswellassellingproductsatunfavorableterms.ButwiththeaccesstothetypeoffinanceprovidedbytheJeebikaKarnaphuliMohoraproject,theywerenowabletomaintaininventoriesprocuredatfavourabletermsandalsomovetowardsownershipoftheircapitalequipment.Anadditionaldimensionofqualitativeimpactwasspill‐overeffectsimpingingoni)womenempowerment,ii)communityharmonyandiii)leadership

LessonsandChallenges

Akeyconceptualweaknessofanti‐povertyeffortshasbeentounderstandtheprocessofgraduatingoutofpovertyasaone‐stepjourneyfrombeingpoortonon‐poor.Groundrealitiesbeliesuchasimplisticunderstandingpointingrathertowardsamulti‐stagejourneyofchange.Akeyissueposedbytheprojectexperienceistheoptimaltimingforexitbyprojectmanagement.Manygraduation‐focusedanti‐povertyprojectshavefailedtosustaintheirimpactbecauseofinadequateattentiontotheoptimaltimingofexit.Consequently,positiveimpactsathouseholdlevelhavequicklyfallenintoreversals.CurrentprogramplanningintheJeebikaprojectisbasedona3yearprogramphasefollowedbya6monthexitphase.Butsuchplanningappearstohavebeennarrowlybasedontheprogrammanagement'sown'management'imperativeratherthanonthemoreimportantgoalofhowprogramimpactforthebeneficiariescanbemademoresustainable.ParticipantsintheFGDswereemphaticthatcatalyticelementsoftheprojectwereindangerofdisintegratingiftherewasaprematureexitofprogrammanagement.Theirpointwasthatthegroup'mission'hadnotyetbecomeimmunefrompressuresfromfamilymembersparticularlyhusbandswhoinmanycasesarelikelytobenarrowlyfocusedontheimmediatebenefitsofwithdrawingtheindividual'equitycapital'i.e.thezakatamount,onceprojectisdeclaredtobecompleted.Ifsuchwithdrawalweretosetinmotion,theentireedificeofthefinancialempowermentmodelwaslikelytocollapse.Projectexperiencesindicatethatthefirstphaseofapoorandstructurallydisadvantagedfamily'squestforsustainable

graduationistobuildresiliencei.e.reducetheextremeintensityofpovertyintermsofdailyliving,laythefoundations

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formakinglivelihoodsmoreremunerativeandbuildsomegrouporganizationalcapitalwhichcannurturetheindividualeffortsatself‐improvement.Programmanagement'sroleinthisresiliencephasehasofnecessitytobedirective.Toalargeextent,thisispreciselywhathasbeenachievedbythe3yearprogramphaseofJeebikaKarnaphuliMohoraProject.However,forsustainablegraduationtheresiliencephasehastobefollowedbyagraduationphasewherethefocusisonconsolidatingthegrouporganizationalcapitalandtransitionoftheprogrammanagementfromadirectiveroletoasupportiverole.Tosummarize,suchanti‐povertyprojectsneedstobere‐organizedasatwophasemodel–aresiliencephasefollowedbyagraduationphasewithqualitativelydifferentrolesforprogrammanagementinthetwodifferentphases.Howsoevertheexitchallengesareaddressed,itisclearthatthezakat‐basedJeebikaKarnaphuliMohoraProjectprovidesa

newmodeloffinancialempowermentbasedonawholenewcategoryofprogramsupportnamely'equitycapital'basedonthezakatdonation.Togetherwithastrongerfocusoncommunityintheformofthe30‐memberVOs,amoresupportiverepaymentcultureandaparallelprogramsupportpackageaimedatthesocialneedsoftheextremepoor,themodelmeritsfurtherattentionasanewandpotentiallymoretransformativemodeloffinancialempowerment.Abindingconstraintonreplicationinthiscaseisofcoursetheavailabilityofzakatfunds.However,sincezakatisauniversaldictumforMuslimsandsincesuchfundscanbesupplementedbyothersourcessuchasCSRfunds,thereismeritinelevatingthemodeltolargerattentionbyinstitutionalizationofZakatasanothereffectiveinstrumentofpovertyalleviationthroughnettransferofcashassetthroughtheZakatsystem.