NGOs in Bangladesh have been active basically in community-based development stressing accumulation of physical capital and technical change (through micro-credit, agricultural promotion), human capital (through non-formal education programs highlighting literacy, life skills and political conscientization), and social capital (through conscientization education and group capacity building). Studies have demonstrated that NGO programs have had a significant, if marginal, micro logical impact on the social and economic reality of many marginal households in Bangladesh (Amin, 1997; Edwards & Hulme, 1996; World Bank, 1996; Chowdhury, 1989). Owing in part to this success, Bangladesh is home to some of the largest indigenous NGOs in the world, including Bangladesh Rural Advancement Committee (BRAC) and Proshika MUK. These are giant credit giving NGOs in Bangladesh whereas Grameen Bank, a development bank (not an NGO), has arguably been one of the most globally influential agencies regarding micro-credit in particular and micro-development in general.

As micro logical programs have been scaled up, there have been calls for new strategies to deal with macro logical constraints (e.g., Korten, 1990). The main legal aid providing NGOs are Madaripur Legal Aid Association, Ain-O-Salish Kendra and the Bangladesh Legal Aid and Services Trust. On the other hand, increasingly some indigenous NGOs, like Gonnoshasthaya Kendra (GK) and Proshika MUK, and organizations like UBINIG are engaging in policy analysis and advocacy (MacLean, 1997). GK championed a progressive pharmaceutical policy with the Bangladesh government that would limit the power of pharmaceutical TNCs(Trans National Companies), and promote the production of only key drugs (Korten, 1990). UBINIG has been active in promoting sustainable agriculture through research and advocating against agricultural TNC encroachment into Bangladesh. The Association for Development Agencies in Bangladesh, (ADAB), an NGO umbrella organization, and Proshika MUK has increasingly engaged the domestic political system.

Though NGOs are engage in diversified arena, in present write-up we have focused our attention particularly on two large credit giving institutions, leading microcredit NGO BRAC and micro-finance institution Grameen Bank with an objective to address the key question i.e., how effective are these institutions in promoting as well as transforming autonomous socio-economic development?

Source: Alochona Magazine