Lecture 13_Islamic Charity & NGO Management.pptx

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1. Emergence of NGOs in Bangladesh

2. Model Islamic NGOs in Bangladesh Muslim community-based religious, charitable, and other philanthropic organizations first came into being when Muslim preachers came to the Indian sub-continent in the early 8th century AD, when Muhammad Bin Qasim advanced to Sind with his troops. These institutions and activities further expanded during Muslim rule in Bengal from the 12th century to the 18th century. Maktab and madrasa of different categories were established to provide religious education, while many more Muslim academic institutions provided religious and other education in mathematics and foreign languages like Arabic, Persian, and Urdu.

3. Model Islamic NGOs in Bangladesh… These schools were mostly dependent on donations and charities from the general public, as well as from disciples of religious peers and dervishes . A study investigates zakat management in a host of Islamic NGOs, which differ from secular NGOs in many respects, not only because they serve and flourish in the community, but also because they are circumscribed by similar legal, intuitional, and cultural milieus. The precise number of Islamic NGOs and charities (registered and non-registered) in Bangladesh is not entirely known or accounted for. The precise number of Islamic NGOs and charities (registered and non-registered) in Bangladesh is not entirely known or accounted for .

4. Model Islamic NGOs in Bangladesh… Some NGOs, however, are actively engaged in religious proselyting and conversion from one faith to another. However , converting to Islam is not popular, as the country is predominantly Muslim and almost no propagation of Islam is directed toward Hindus (the second biggest religion in Bangladesh) and other non-Islamic religious groups to convert them into Islam. Muslim religious and political groups do still promote many activities, collect supporters, and take part in political maneuverings.

5. Model Islamic NGOs in Bangladesh… The more profound of Islamic developmental activities undertaken are those by the biggest Islamic political party in the country, which is virtually to establish and show its presence in the NGO sector, one of the most active and vibrant developmental fields in this country . The mood is, generally, “if you secularists have supporting development activity partners, we also have partners in this field.” The number of such NGOs could be several thousand, some of which are affiliated with a moribund Muslim NGO federation, the Association of Muslim Welfare Agencies in Bangladesh (AMWAB). This organization itself claims to promote the cause of Islamic NGOs in the country.

6. Model Islamic NGOs in Bangladesh… From the late 1970s, international Islamic developmental organizations, namely Rabeta Al Alam Al Islam, started funding activities. Islamic Aid (Bangladesh) started working in the country from 1990 and Muslim Aid (Bangladesh) from 1991. The Al Haramain Islamic Foundation of Saudi Arabia established its Bangladesh branch in July 2004, and now works as a private charitable, educational NGO. Other noted international Islamic funding organizations, namely the International Islamic Relief Organization (IIROSA), Islamic Aid (UK), the Islamic Relief Agency (Sudan), Qatar Charity, the Al Basher International Foundation (Saudi Arabia), Kuwait Joint Relief Committee (Kuwait), World Assembly of Muslim Youths, etc. have provided funds for various developmental and religious activities.

7. Model Islamic NGOs in Bangladesh… Some Islamic NGOs distribute meat from Muslim countries in the Middle-East during the feast time of the Hajj month, and during the compulsory giving time ( fitra ) of Ramadan. Some local Islamic NGOs work as their collaborators. Such local Islamic NGOs have mushroomed in the last decade, and prominent members include the Al Ihsan Social Development Center, Al Amanah Samaj Kallayan Sangstha , Al Jamateul Islimah , Al Watan Charitable Society, Al Falah , Darul Ihsan Trust, Haqqani Mission, Islami Bank Foundation, Islamic Relief Committee, Islamic Blind Mission, Masjid Samaj , Muslim Hands International, and Zam Zam Bangladesh, to name a new. Most of these are engaged in activities like disaster emergency response, hunger and malnutrition relief, poverty alleviation, madrasa education, orphan support, construction of mosques, healthcare, human rights, humanitarian efforts, religious activities, womenʼs rights, and similar other activities.

8. NGOs and their Impact in Poverty Alleviation in Bangladesh Poverty is a state insufficiency, where individuals struggle to acquire basic needs. Seasonality, climate, economic crises, and household shocks are common factors that influence poverty. Known for its dense population, Bangladesh faces consistent struggle in keeping up with the demands of a continuously rising number of inhabitants. With an increasing population in Bangladesh, NGOs continue to implement microcredit programs, cooperative forming, and a direct involvement of beneficiaries to catalyze sustainable growth and socio-economic development. Analyzing the history of poverty in Bangladesh is crucial in alleviating such poverty.

9. NGOs and their Impact in Poverty Alleviation in Bangladesh… Non-governmental organizations began to emerge worldwide with a focus on advocacy and consciousness, making Bangladesh a prime candidate to test their efforts. Compared to World Bank regimes, the incorporation of NGOs enjoyed a much more favorable consensus. The NGO model of development offered accommodation and convenience for the clear majority of poor or underprivileged inhabitants, providing resources and devout attention to social issues. The model’s initial goal stemmed from an attention to inequality amongst the poor and disadvantaged, but NGO efforts quickly shifted to a concentration on microcredit programs. Microcredit is the allowance of minute loans to underprivileged borrowers who typically lack reliable employment, credit history, and even supplemental collateral.

10. NGOs and their Impact in Poverty Alleviation in Bangladesh… Such programs are instilled to alleviate poverty and promote entrepreneurship. By building on the strengths of the poor and enhancing health, financial security, and income, microcredit programs serve as a new lifeline for poor and developing countries. Since the 1983 formation of the Grameen Bank- the first modern microcredit institution- in Bangladesh, microcredit programs expanded rapidly throughout the country . Muhammad Yunus , pioneer of the Grameen Bank, deemed conventional banking to be unfit for poor and developing countries such as Bangladesh, calling for a solution that would deliver minimal loans at low-interest rates to the rural poor as an effective tool for starting more small businesses. The Grameen Bank began as a proponent of social welfare without collateral, mainly advocating on behalf of women as they were and continue to be socialized as inferior and male dependent in Bangladesh .

11. NGOs and their Impact in Poverty Alleviation in Bangladesh… The Grameen Bank was quickly followed by NGO replication, marking the beginning of major programs such as Bangladesh Rural Advancement Committee (BRAC), Association for Social Advancement (ASA), PROSHIKA, and Palli Daridro Bimochon Foundation (PDBF). After its early establishment as a movement to rehabilitate refugees returning to Bangladesh from India, BRAC now stands as the world’s largest development organization. Microcredit programs have become the sole focus amongst BRAC and ASA, extending small loans to the very poor people for “self-employment projects that generate income, allowing them to care for themselves and their families” (BRAC.net). These NGOs have consciously acknowledged Bangladesh’s poverty-stricken population be their targeted beneficiaries, with poor women considered to be of utmost importance.

12. NGOs and their Impact in Poverty Alleviation in Bangladesh… Eradication of poverty in Bangladesh is slowly becoming a reality as microcredit programs become increasingly more popularized amongst the disadvantaged, poor population. The Grameen Bank and NGOs like BRAC and ASA were founded on principles of generalized trust and public good deed, where a trust in poor people’s ability to repay others has kept the industry afloat and thriving. Microfinance initiatives promote self-respect and dignity, which encourage hard work through individual efforts. Other non-governmental organizations, like co-operatives, are conducive to economic development and the alleviation of poverty in Bangladesh. Co-operatives are an independent entity of people who are united voluntarily to further a common, economic interest. They are traditionally based on the values of “self-help, self-responsibility, democracy and equality, and equity and solidarity”.

13. NGOs and their Impact in Poverty Alleviation in Bangladesh… Agriculture co-operatives remain as the most prominent in Bangladeshi societies, where self-governance drives their methodologies and theories. The agricultural industry operates as the largest job-creation sector in rural Bangladesh, where poverty and malnutrition are rampant. Based off a collective goal to eradicate significant levels of poverty and minimize widespread hunger, agriculture co-operatives facilitate open access to production resources and open wider markets for trade and product movement. Direct development of the agriculture, industry, and service sectors serve as the most beneficial. However , social sector development policies (women and youth advancement, education, health) directly and indirectly assist human capital development and socio-economic conditions of the poor.

14. NGOs and their Impact in Poverty Alleviation in Bangladesh… Easy access financial policies –microcredit programs- for the poor are important for access to resources, self-employment, and raising the standard of living, because they lead to positive impacts on poverty alleviation. Microcredit programs, co-operative forming, and direct involvement of beneficiaries have led to real rural wage growth and noticeable living condition improvements. This growth has been both formal and informal. The implementation of microcredit programs and collateral-free loans enabled the most distinct drops in poverty, where positive increases in other sectors of well-being are evident. Bangladeshi government combined with NGO influence continues to work to formulate policies and strategies to expand productive employment opportunities and promote labor-intensive growth.

15. NGOs and their Impact in Poverty Alleviation in Bangladesh… While overall improvement is apparent, poverty continues to be a daunting problem, where poverty in rural areas continues to be more pervasive and extreme than in urban areas. Eradication of poverty and the disadvantaged population will continue to be Bangladesh’s primary objective for development . Within the last 10 years, NGOs in Bangladesh made remarkable progress in lifting over sixteen million people out of poverty and reducing inequality amongst its citizens. As of 2023, the poverty rate in Bangladesh has declined to 18.7 per cent and the extreme poverty rate stood at 5.6 per cent, according to the latest data from the Bangladesh Bureau of Statistics (BBS: Household Income and Expenditure Survey 2020-21). According to the previous survey carried out in 2016, the poverty rate was 24.3 per cent and the extreme poverty rate was 12.9 per cent .

16. NGOs and their Impact in Poverty Alleviation in Bangladesh… Bangladesh has already achieved many of the indicators of MDGs and attained the Lower-Middle-Income-Country status since the commencement of its First Perspective Plan (2010-2021). Its gross domestic product (GDP) growth rate has crossed the milestone of eight per cent, indicating an accelerated growth path. In line, the government approves the country’s Second Perspective Plan (2021-2041) to turn Bangladesh as a higher middle-income country by 2031 and a higher income & developed country by 2041.

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