Bangladesh Microfinance Statistics 2014
SOCIAL development AND
TRAINING program of MFIs
SOCIAL development ANDTRAINING program of MFIs
3.1.Social development services of MFIs:
MFIs are committed to overall socio-economic development for the communities they serve. This is why, alongside microfinance activities, microfinance institutions (MFIs) have engaged themselves in various social development services including training for the poor, very poor, near poor and low-incomepeople. They havenot only included their members in such development programs but have also covered many other community members who are not their members. These people have been equally benefited from these development programs.
3.1.1.MFIs with social development program (SDP): Poverty reduction has been a common concern for the society in general and one of the important visions of microfinance sector which can effectively be accelerated by undertaking different social development programs. The present review has found that a great majority of the MFIs have been implementing development initiatives under their social development programs while a minority portion of them are yet to provide such services.
During 2014, a total of 511 MFIs including the Grameen Bank (GB) has provided information regarding their social development activities. Out of the total (511 MFIs), about 375 MFIs (73.39%) have been found to have implemented various social development activities, while the rest 136 MFIs (26.61%) did not have any such program during the same period.
Table 3.1.1: Distribution of MFIs by social development program in 2014
MFI category / Number of MFIs* / Percent of MFIsHaving SDP / 375 / 73.39
Not Having SDP / 136 / 26.61
Total / 511 / 100.00
Source: CDF survey 2014. *MF-NGOs and Grameen Bank.
3.1.2.Different social development services of MFIs: MFIs provide different social supports to the poor, very poor and vulnerable people for their overall development. The highest number of MFIs (45%) have given first priority to educational services and have provided educational and related support. While the second highest number of MFIs (39%)has provided Health and Treatment and the third highest number of MFIs (29%) have been providing Water Sanitation services.
Women empowerment is one of the important objectives of the MFIs and to this effect the MFIs also provide other direct supports to them apart for their development and empowerment and, as such, the fourth highest number ofMFIs (26%) have provided support for women empowerment and development. As the fifth highest area, about 26% MFIs ensured rehabilitation services to the disabled, vulnerable and unemployed population.
Notably global warming has of late been identified as one of the factors for environmental degradation caused by decreasing proportion of forest land and increased carbon emission. To control the global warming, increasing the forestry is of paramount importancealong with taking steps for reduction of carbon emission. With this end in view, 15% of MFIs have provided afforestation support to their clients during 2014.
Likewise, the rest MFIs have provided support to each of the following sectors including: prevention of child marriage, agricultural equipment support, housing, good governance and legal support and environment and disaster management, HIV and AIDS and family planning services, food processing relief sector, prevention of women and children trafficking and human rights support (Table 3.1.2).
Table 3.1.2: Different social development services of MFIs in 2014
Sl. / Types of social development service / Service providing MFIsNo. / As % of total
1 / Educational and Related Support / 229 / 44.81
2 / Water and Sanitation / 146 / 28.57
3 / Forestation / 79 / 15.46
4 / Health and Treatment / 198 / 38.75
5 / Women Empowerment and Development / 132 / 25.83
6 / Rehabilitation of Disabled, Vulnerable and Unemployed / 131 / 25.64
7 / Housing / 66 / 12.92
8 / Agricultural Equipment Support / 65 / 12.72
9 / Good Governance and Legal Support / 56 / 10.96
10 / Prevention of Women and Children Trafficking / 47 / 9.20
11 / Human Rights / 24 / 4.70
12 / Environment and Disaster Management / 62 / 12.13
13 / Prevention of Child Marriage / 65 / 12.72
14 / HIV/AIDS and Family Planning / 54 / 10.57
15 / Other (Food & food processing, Relief, etc.) / 72 / 14.09
All / 375 / 73.39
Source: CDF survey 2014.
3.1.3.Receivers of social development services of MFIs: This review has found that the MFIs are providing social development support to their members as well as to the community people who are not their members. During the year 2014, in total 135.81 million people (the number is in terms of frequency of services availed) received social supports from the MFIs of which 27.92 million were members (20.56%) while 107.89 million were non-members (79.44%).
If top 10 service receivers are considered among the 15 services where the members accessed most include Agriculture Equipment (74.86%) followed by forestation (61.72%), Environment & disaster (52.76%), Water & sanitation (48.72%), Prevention of women and Children Trafficking (47.58%), HIV/AIDS and Family Planning (46.81%), Housing (45.64%), Rehabilitation (34.92%), Education (32.17%) and Human rights (22.10%).
In respect of non-members the most service receivers include Prevention of Child Marriage (95.22%) followed by women empowerment (91.57%), Health and treatment (81.35%), Good governance (78.94%), Human rights (77.90%), Education (67.83%), Rehabilitation ( 65.08%), Housing (54.36%), Family Planning (53.19%) and Water & sanitation (51.10%).
The comparative picture shows that the members have given most priority to agriculture equipment and low priority to human rights. On the other hand, the non-members have given top priority to Prevention of Child Marriage and low priority to water & sanitation.
Table 3.1.3: Social services receivers by type of services
(January-December 2014)
Sl. / Types of services / Total receiver / Member receiver / Non-member receiverNo. / % of total receiver / % of total member / No. / % of total receiver
1 / Educational and Related Support / 6,975,120 / 2,243,722 / 32.17 / 6.59 / 4,731,398 / 67.83
2 / Water and Sanitation / 6,011,682 / 2,939,576 / 48.90 / 8.64 / 3,072,106 / 51.10
3 / Forestation / 381,803 / 235,642 / 61.72 / 0.69 / 146,161 / 38.28
4 / Health and Treatment / 105,195,738 / 19,618,227 / 18.65 / 57.63 / 85,577,511 / 81.35
5 / Women Empowerment and Development / 10,819,873 / 911,898 / 8.43 / 2.68 / 9,907,975 / 91.57
6 / Rehabilitation of Disabled, Vulnerable and Unemployed / 561,035 / 195,886 / 34.92 / 0.58 / 365,149 / 65.08
7 / Housing / 22,322 / 10,187 / 45.64 / 0.03 / 12,135 / 54.36
8 / Agricultural Equipment Support / 489,053 / 366,098 / 74.86 / 1.08 / 122,955 / 25.14
9 / Good Governance and Legal Support / 570,425 / 120,150 / 21.06 / 0.35 / 450,275 / 78.94
10 / Prevention of Women and Children Trafficking / 289,625 / 137,809 / 47.58 / 0.40 / 151,816 / 52.42
11 / Human Rights / 137,678 / 30,421 / 22.10 / 0.09 / 107,257 / 77.90
12 / Environment and Disaster Management / 569,466 / 300,426 / 52.76 / 0.88 / 269,040 / 47.24
13 / Prevention of Child Marriage / 2,477,194 / 118,298 / 4.78 / 0.35 / 2,358,896 / 95.22
14 / HIV/AIDS and Family Planning / 829,252 / 388,168 / 46.81 / 1.14 / 441,084 / 53.19
15 / Other (Food & food processing, Relief, etc.) / 475,798 / 303,357 / 63.76 / 0.89 / 172,441 / 36.24
All / *135,806,064 / *27,919,865 / 20.56 / 82.02 / 107,886,199 / 79.44
* Number looks exorbitant as both members and non-members access to more than one service simultaneously from a single/may organizations.
Source: CDF survey 2014.
3.1.4.Conclusion: It is interesting to note that the MFIs while being committed to microfinance services have been extending other social development services beyond financial services to the different kinds of poor people. This is a positive indication that in recent years the MFIs have been providing services to overall socio-economic development of their clients as well as other community members. Although a large number of MFIs are providing their support under different social development programs, some MFIs are yetto participate in these activities. It can be expected that MFIs would provide support to the hitherto uncovered poor, very poor and vulnerable persons of the society in greater proportions in the days ahead to the benefit of their members as well as the non-member community as a whole. Since the MF-NGOs are spread over the country, they will be certainly offering more and more services to the community members and play a key role as change agents towards building a prosperous Bangladesh in the days ahead.
It may be noted that one might question the huge number of member and non-member service recipients that even outnumber the total population of the country. Most probably, the high figures firstly refer to MFIs growing commitment to non-financial social development services to the communities they serve which might have been prompted by the government’s repeated emphasis upon this issue and, secondly, Bangladesh Bank Governor’s appeal on different occasions to this effect. Secondly, such high figures might have been caused by the fact that many member and non-member community people have received more than one service from the same MFI and, at the same time, many of them received more than one service from more than one MFI.
3.2.Training program of MFIs:
The MFIs provide financial services including individual loan, micro-enterprise loan and insurance service, etc. while, alongside, they also extend different social supports under their social development programs. Besides,in order to develop the capacity of the members and non-members, they provide different kinds of training (2014).
3.2.1.MFIs with training programs: Human resource is the number one resource required for accomplishment of any work effectively and efficiently. Since the maximum coverage of the MFIs is in rural areas, majority of the members and non-members of the MFIs generally lack knowledge and skills in some specific fields. MFIs use Training as a useful tool to fill up this gap towards making their borrowers self-employed, and achieving their individual and the national goals of alleviating poverty by enhancing their capacity through providing training. Over the reporting year (2014), a total of 511 MFIs including the Grameen Bank have furnished data of their training programs. This review has found that out of the 511 reporting MFIs, 272(53.23%) have implemented training program providing various training to both members and non-members while 239 of them (46.77%), however, did not have any training program (Table 3.2.1).
Table 3.2.1: Distribution of MFIs by training program in 2014
MFIs category / Number of MFIs / Percent of total MFIsWith training program / 272 / 53.23
Without training program / 239 / 46.77
Total / 511 / 100.00
Source: CDF survey 2014. MF-NGOs and Grameen Bank.
3.2.2.Different training programs of MFIs: It has been evident from the available data that the MFIs have been providing training to both members and non-members for their capacity building and finally to make them skilled so that they can run their respective IGAs professionally, skillfully and profitably. In 2014, data have been collected from 511 MFIs under the broad headings, such as training on agriculture, livestock and poultry rearing, nursery, tailoring, driving, handicrafts, entrepreneurship development and others. It has been found that all MFIs did not have training program in all categories of training though majority of them have training program on relevant and major aspects.
It is seen from the available data that amongst the MFIs that have provided training during the year 2014 include 204 MFIs (39.92%) on agriculture,180 MFIs (35.23%) on livestock poultry,240 MFIs (46.97%)on nursery,201 MFIstailoring (39.33%), entrepreneurship development (42.07%), handicrafts (46.38%) anddriving (51.27%), etc.Training on various issues got almost similar importance as indicated bydifferent number of MFIs and others (45.01%) (Table 3.2.2).
Table 3.2.2: Different training programs of MFIs in 2014
Sl. / Types of training program / MFIs* have trainingNo. / Percentage
1 / Agriculture / 204 / 39.92
2 / Livestock and poultry rearing / 180 / 35.23
3 / Nursery / 240 / 46.97
4 / Tailoring / 201 / 39.33
5 / Driving / 262 / 51.27
6 / Handicrafts / 237 / 46.38
7 / Entrepreneur development / 215 / 42.07
8 / Other / 230 / 45.01
All / 272 / 53.23
Source: CDF survey 2014. *MF-NGOs and Grameen Bank.
3.2.3.Receivers of training services of MFIs: This review has found from the available data that over the year 2014, the MFIs were engaged in providing training services to their members as well as to other community members.
During 2014 the total receivers of training included 978,191 thatincluded member receivers 781,725 (79.92%) and non-members receivers (20.08%). Among the member receivers,entrepreneurship development is the highest (85.67%) followed by agriculture (85.55%), livestock and poultry (78.68%), handicrafts (72.84%), driving (69.06%), tailoring (60%), nursery (48.26%), etc.
On the other hand, the scenario of non-member training receivers shows that the highest receivers is in nursery (51.74%) followed by tailoring (40.00%),driving (30.94%), handicrafts (27.16%),livestock & poultry rearing (21.32%),agriculture (14.45%) and entrepreneurship development (14.33%)
Table 3.2.3: Training services receivers by type of services
(January-December 2014)
Sl. / Types of training / Total receiver / Member receiver / Non-member receiverNo. / % of total / No. / % of total receiver / % of total member / No. / % of total receiver
1 / Agriculture / 228,552 / 23.36 / 195,526 / 85.55 / 0.57 / 33,026 / 14.45
2 / Livestock and poultry rearing / 284,368 / 29.07 / 223,747 / 78.68 / 0.66 / 60,621 / 21.32
3 / Nursery / 30,610 / 3.13 / 14,771 / 48.26 / 0.04 / 15,839 / 51.74
4 / Tailoring / 43,058 / 4.4 / 25,833 / 60.00 / 0.08 / 17,225 / 40.00
5 / Driving / 8,455 / 0.86 / 5,839 / 69.06 / 0.02 / 2,616 / 30.94
6 / Handicrafts / 19,471 / 1.99 / 14,183 / 72.84 / 0.04 / 5,288 / 27.16
7 / Entrepreneur development / 230,795 / 23.59 / 197,733 / 85.67 / 0.58 / 33,062 / 14.33
8 / Other / 132,882 / 13.58 / 104,093 / 78.33 / 0.31 / 28,789 / 21.67
All / 978,191 / 100.00 / 781,725 / 79.92 / 2.30 / 196,466 / 20.08
Source: CDF survey 2014.
3.2.4. Conclusion: Compared to the huge size of microfinance sector, the percentage of MFIs involved in training program does not match well. Although 978,191 member and non-member training recipients from the community were served by 511 MFIs in one year it does not present a significant picture. There is ample potential, however, for the microfinance sector in general and training in particular to emerge as a major training service provider to gear up the poverty alleviation and fight the unemployment situation.There is an interesting feature that has emerged with regard to type of services availed of by members and non-members is that both attach different importance with regard to the aforesaid training/capacity building services.
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