Foreword

The century’s worst devastating flood of 1998 has caused havoc and destruction in all spheres of our economic and social life. The scar of the flood has left before all of us in general, and the Government in particular, a gigantic task of recovery. The flood has taught us many important lessons as also exposed our weaknesses in preparedness and capabilities in facing calamities of such catastrophic dimension.

The nation became united once again to fight a war against the deluge. People from all walks of life irrespective of their cast and creed, age and status and their political affiliation, came with helping hand to provide succour to the flood affected people languishing in the relief camps. Although the country’s more than two-thirds area was affected with flood forcing millions of people to take refuge in relief camps and temporary make-shifts on high lands, roads and highways, our relief operations mostly remained limited in and around Dhaka city. This was less because large number of needy and relief seeking people from over-populated capital slums and suburbs thronged to the relief camps of the capital city but more because of our incapability to reach the remote and inaccessible places with aid and relief. At one stage of the peak of the flood, the rest of the country appeared to be in threat of being cut off with the capital. The communications between villages and thana head quarters with district head quarters in most affected places were snapped leaving millions of affected people unattended and in untold ordeals for months together. The Government’s efforts to reach aid to these inaccessible places through its own administrative conduit were handicapped due to lack of resources at the beginning. The local and international voluntary organizations preferred to channel relief in their own way and, surprisingly, some of the international donors also preferred to channel their aid through the NGOs by-passing the Government’s channel. In a nutshell, there appeared to be a stark lack of coordination every where.

Everybody came up with providing relief to the affected people but there was nobody to dictate priority and necessity. As a result, the relief camps having risk-free easy access had plenty of relief goods, those outside easy reach received scanty of supplies while the remotest ones remained largely unattended. In the process, we forgot one set of affected people, the lower middle class people, who did not come to the relief camps or did not force ahead in front to have relief. They did not come partly because of middle class ‘aristocracy’ standing on their way to beg for help. The humanity demanded that we searched out these marooned families and stood by them to extend possible help. Only a coordinated approach could ensure this.

While we would deploy our all out efforts to fight out a decent and dignified recovery from this devastation wrought by the flood, we should also have time to think on our preparedness for facing natural disaster of this nature in future given that our country is prone to such calamities. Our future plan of actions should be based on learning from the past. We have talked of necessity of coordination and prioritization at the time of emergency relief operations. The coordination between the NGOs and the Government machinery would ensure proper and judicious use of our scarce resources. While the GO-NGO coordination in all spheres of development is in the offing through the GNCC, an intimate look into the roles and potentials of the NGOs at the time of such disaster may be worth looking into. The potentials of these NGOs are rooted in their following pro-people working features :

There are thousands of such NGOs working in far flung areas of the country. These include the national level giants like BRAC, Proshika, Gana Shasthya Kendra, Association for Social Advancement (ASA) and a few others with Head Office at Dhaka. We have seen the commendable activities and selfless performance of these large NGOs in providing relief and other support to the affected people. But what about thousands of other local NGOs ? The vast potentials of this large number of local institutions remained mostly unused during the time of our great need due to lack of direction and resources. These NGOs could have stood by the side of their marooned members had they had a program and preparedness for this. But the contrary happened in reality. The NGOs were thrown out of work due to inundation of their program areas and activities. Some of the NGOs even could not pay usual salaries to their low paid employees due to lack of income and work. Here, the cause for re-orientation in program focus of the local NGOs to meet similar exigencies in future and the case for creation of a Disaster Management Fund comes in. These NGOs could be used as a local unit force to fight the calamities at initial stages till the re-enforcement arrives, provided this unit may be armed with appropriate resources and logistics to fight such calamities in future. Almost all these NGOs’ various development interventions are funded by some or other donors. These donors also provided help for flood victims but through other conduits easy to reach. Given that Bangladesh is prone to perennial flood and other natural calamities, it is worth-thinking that the NGOs create a local Disaster Management Fund of their own so that they do not have to play the role of a helpless silent on-lookers at the time of distress and dire need of their members. The proposed Fund could be created from the contribution of the NGOs, the members and the donors. One may raise here the question of accountability and transparency of the NGOs. A legal and regulatory framework for these NGOs is in the offing at the instance of the Government. The proposed framework is expected to take care of the transparency and accountability issues. Meanwhile the NGOs enrolled with the Palli Karma-Sahayak Foundation (PKSF) may take lead in this respect.

PKSF was established by the Government with a view to on-lending funds to various agencies engaged in poverty alleviation. In addition to lending fund to its client NGOs {termed as Partner Organizations (POs)}, the PKSF is also trying to set norms and standards for microcredit management. In addition to above, PKSF also helps in capacity building of small and potential NGOs engaged in microcredit through providing training and other logistic supports. Till date, PKSF has brought about 172 POs with membership enrollment of about 1.5 million under its fold. These POs have programs spread over far flung areas of the country covering almost all districts starting from Panchagar to Cox’s Bazar. The POs of PKSF are under strict supervision and monitoring and as such have to follow a standardized accounting and book keeping practice. The financial leverage available with PKSF – being only source of loanable fund for POs- helps it to enforce compliance with rules and audit/accounting standards. So, the question of accountability and transparency may be considered resolved in case of the PKSF enrolled POs. The donors may consider putting such fund in a central account with PKSF for onward distribution to its POs against a Memorandum of Understanding spelling out the management, monitoring and reporting procedures for such fund. The proposed fund could comprise of the following :

The fund would be used by the POs for providing emergency relief aid to the members to face the initial brunt of disaster like flood, tidal bore, cyclone and tornado etc. and also to provide interest free loans for housing, sanitation, tube-wells etc. Under a pre-set guideline circulated by PKSF the role of PKSF would be to :

The proposed fund once established would serve as a permanent resource for disaster preparedness and relief operation at local level. The fund would get triggered and activated automatically on the onset of calamities. The PKSF’s normal monitoring, audit and inspection would apply equally to these funds. The donors would have access to these accounts and would be entitled to receive periodical reports from PKSF on the status of the fund.

Establishment of local Disaster Management Fund along the broad outline enumerated above would not only meet the immediate need of the affected people, but would also help us help ourselves without waiting for the Government machinery to come to rescue in times of such disasters in future. This would also ensure more effective, judicious and transparent use of the donors’ fund exactly where and when it is needed to face the disaster. Above all, a Disaster Management Fund of this kind is now considered a sine qua non to rehabilitate the affected people in their own place so as to enable them to start their income earning activities using microcredit provided by the NGOs. In that sense, the proposed fund would also help ‘rehabilitation’ of the disaster affected microcredit program of about more than one thousand agencies which is otherwise in a threat of collapse.  

Introduction :

The practitioners of microcredit are worried about credit overlapping. Overlapping problem arises when more than one organization runs its microcredit program in a particular area and a single person takes loans from more than one organization simultaneously. Overlapping problem may occur both at borrower and group levels, that means, a person can take loan from more than one organization or a group can take loan from different sources. It is difficult for a particular organization to monitor or supervise its credit program when a loanee takes loan from different sources.

(b) At Managerial Level of MFIs :

1. Unplanned expansion of loan program :

Objectives and Rationale Behind Avoiding Overlapping Problem :

Now a days overlapping is a great problem in microcredit program. Because of this problem all organizations, particularly small ones, are failing to achieve the desired success. Overlapping is having negative impact on loan recovery rate and sustainability. As one member takes two loans from two sources, there is a risk that the second loan is used to repay the first one creating an accumulated volume of hidden bad debt in the microcredit sector. Further, in a situation where supply of microcredit fund is limited, if some borrowers receive loans from more than one organization simultaneously, other poor people will be deprived of microcredit.

PKSF, as an apex financing organization, is concerned about overlapping problem. All small organizations should avoid this problem for their own interest through discussion among themselves. PKSF wants the members of a particular NGO not to take loans from more than one organization at a time. Every organization must realise the consequences of overlapping and work sincerely to solve it. The steps to solve the problems of overlapping may be divided into two categories:
(a) those removing the existing overlapping problems; and
(b) those helping to avoid the future overlapping problems.

(a) Steps to solve the existing overlapping problems :

(b) How to avoid future overlapping :

Capacity Building Issues for Micro Finance Institutions and the Role of Palli Karma-Sahayak Foundation

- Md. Shaikhul Islam

Introduction :

Inspired by the initial success of microcredit program, the NGOs of Bangladesh have been implementing the program with a view to alleviating poverty through the creation of employment opportunities. Their efforts have produced reasonable success. As a result, the NGOs have drawn special attention of development practitioners as well as policy makers and interest groups at home and abroad. These NGOs are now being treated as Micro Finance Institutions (MFIs). There is a definitional difference between an NGO and an MFI. The major difference lies in the context of fixing up the main focus of organizational strategies that the organizations have adopted to reach their objectives. The purpose of this article is to point out some issues that the MFIs need to consider seriously to make their programs sustainable and to identify the role of PKSF in this regard.

NGOs and MFIs: Micro Financing Perspective :

The term "MFI" was not as familiar few years back as it is today. The evolution and growth of MFIs is deeply related with the emergence of NGOs. The NGOs have been implementing different donor driven development programs and projects since the independence of Bangladesh. However, since mid- eighties a remarkable transition in the program objectives of the NGOs has been clearly visible. While relief, rehabilitation and awareness building were the major objectives of the NGOs before mid-eighties, poverty alleviation through the provision of microcredit has become the central program objective of all NGOs today. The progressive decline in the availability of soft grant money from the donor community has much to do with this shift in program objectives.

Today the "not for profit" organizations are involved basically in financial activities. These organizations or MFIs, as they are rightly called, provide different financial services to their clients, the targeted landless and assetless people. The financial products generally include microcredit, and micro-savings. In order that the MFIs can operate successfully and become sustainable, they need to consider some capacity building issues.

Capacity Building Issues :

The major capacity building issues that the MFIs need to consider for their viability and sustainability may be enumerated as follows :

1. Good governance
2. Strategic planning
3. Planned expansion of micro finance program
4. Financial and economic viability
5. Strategic human resource management
6. Budgetary practice
7. Financial management
8. Accounting Information System (AIS)
9. Management Information System (MIS)
10. Monitoring and evaluation
11. Internal audit
12. Social acceptance
13. Institutional sustainability

Good Governance :

Good governance is an area where the MFIs should give serious attention. The highest level of authority of an MFI is its General Body. The next level is the Executive Committee, which is basically responsible for policy direction of MFIs. The wisdom, enlightenment, commitment and integrity of the members of both general and executive bodies are extremely important for the goodwill, sustenance and growth of MFIs. Visionary direction from the committee members would be critically helpful for MFIs to reach their objectives.

Strategic Planning :

Strategic planning is the plinth of an MFI. An MFI is set up for providing financial services to its clients. MFIs are in need to have strategic plans covering three to five years for their future directions, courses of actions, growth and sustainability. All MFIs do not have unique features. They vary from one another in terms of size, location, management style etc. So, there can be no unique format for strategic planing for all MFIs. Generally, MFIs should aim at achieving the following objectives from strategic planing :

Planned Expansion :

Unplanned expansion, either vertical or horizontal, is a great problem that MFIs are facing frequently. Unplanned expansion is not congenial as well as desirable in terms of fund management, cost effectiveness, financial, economical and programmatic sustainability and above all for a dynamic and efficient management. MFIs should study the feasibility of expansion before taking any decisions to maximise their outreach. The expansion policy of an MFI has to be considered in accordance with the strategic planning of the MFI.

Financial and Economic Viability :

Financial and economic viability is very important for MFIs for their future sustainability and growth. Financial viability is achieved if MFIs can meet their operational expenditures from their earnings. Moreover, if sufficient surpluses can be created after meeting operating expenses MFIs can become economically viable.

Strategic Human Resource Management :

Strategic human resource management is another area where MFIs should give emphasis. MFIs should formulate an appropriate human resource development policy. MFIs should recruit dynamic and sincere field workers, accountants, mid and top level managers. Moreover, MFIs need to appraise staff performance on a regular basis and provide incentive based compensation package to the deserving staff. To accomplish the responsibilities of such an important area properly, it would be prudent for each MFIs to establish a human resource department.

Budgetary Practice :

Budgetary practice is essential for MFIs. MFIs should prepare a budget, which will have two main heads. One is programmatic and the other is the revenue expenditure. In the beginning of a financial year, programmatic and revenue expenditure budget should be completed. Major heads of programmatic budget is the expected availability of funds, expected monthly expenditures in accordance with the expected service charge earnings. At the end of a financial year MFIs need to calculate budget variance in comparison with the actual one. The thumb rule in this regard is that MFIs have to be careful in budget variance relating to expenditures. However, it will be an advantage for MFIs if they have other sources of income, which can reduce the pressure on service charge.

Financial Management :

Financial management is extremely important for MFIs. The efficiency with which an MFI manages its capital, liabilities and assets determine overall financial performance of that MFI. In this regard MFIs can make use of different financial ratios for taking appropriate decisions.

Accounting Information System (AIS) :

A sound, transparent, standard and acceptable Accounting Information System (AIS) has two fold implication. First, any financial transactions must be conducted, registered and supervised through a chain of systems that will ensure a reasonable degree of control, and second, financial statements should be presented to management in a way that helps them to take necessary steps for operational purposes.

Management Information System (MIS) :

Existence of an efficient Management Information system (MIS) is imperative for MFIs. MFIs must be able to manage information without any distortion. Distorted information and inefficient use of information is responsible for management problems which hinder financial and operational efficiency.

Monitoring and Evaluation :

Monitoring and evaluation of microfinancing program is another area where MFIs would have to give priority. Monitoring system of an MFI should consist of monitoring of group activities, financial transactions, staff activities, income and cost effectiveness, utilisation of funds, institutional goals and strategic objectives etc. In this regard, MFIs can create a monitoring map to indicate who is responsible for which outputs. On the other hand, for evaluation, an MFI can study the impact of its program on beneficiaries. It can also evaluate the operational efficiency of the organization to run program smoothly. Moreover, continuous monitoring, supervision and evaluation can detect loopholes of programs and suggest curative measures. In this regard MFIs can open a separate monitoring and evaluation department.

Internal Audit :

Internal audit is also extremely important for MFIs. It is the responsibility of internal auditors to find out loopholes of financial management of MFIs. It is a check and balance system. It would be wise for an MFI to create an internal audit cell that will be directly accountable to the Chief Executive Officer (CEO).

Social Acceptance :

Social acceptance of an MFI is also very important. An MFI would not be institutionally sustainable unless it is also accepted socially. Therefore, MFIs should make their objectives and services known to people of different levels, which include civil society, elected representatives, government agencies, local administration, other MFIs, donors and other stakeholders. An accountable, transparent and easily accessible MFI would be more acceptable to the society.

Institutional Sustainability :

The issues, mentioned above, are to a great extent interrelated indeed. Strategic planning of an MFI can give a clear-cut long-term structured policy and operational guidelines to achieve institutional sustainability. Again institutional sustainability of an MFI depends on the financial, programmatic and economic viability; strategic human resource management policy and its social acceptability which would have to be monitored, supervised and evaluated from time to time. And all these conditions can be met if good governance can be ensured.

Role of PKSF :

There is a partnership relationship between PKSF and those MFIs who are the partner organizations (POs) of PKSF. All MFIs of Bangladesh are not POs of PKSF.

Palli Karma-Sahayak Foundation (PKSF)- an apex financing institution has been set up by the Government of Bangladesh in 1990 as a "not for profit" organization. The overall objective of PKSF is to alleviate poverty. To reach its objectives, PKSF is implementing microcredit program targeting the landless and assetless.

The modus operandi of PKSF is quite unique and exceptional indeed. It does not implement micro credit program directly at the field level. It gets the program implemented through its POs which are MFIs. PKSF provides fund to its POs as loan, the POs disburse the money to their clients - the target people. PKSF encourages its POs to follow the best delivery system.

In order to maintain the quality of micro finance program, PKSF assesses the needs of its POs in all respects, and it has been perceived by PKSF that MFIs not only require funds, but they also need a comprehensive package of institutional development (ID) support and services to enhance their capacity for their future sustainability. In this regard, PKSF has been continuously providing technical assistance to its POs to formulate their strategic plans, short-term plans, action plans and improve MIS and AIS. Moreover, as a part of human resource development program, PKSF also imparts training to staff of different levels of its POs. It also provides its POs interest free loan to buy computers and motorcycles and bicycles. PKSF will also provide its POs with the necessary softwares for computerisation of their MIS system.

Apart form providing technical assistance to the POs PKSF also monitors and supervises the POs on a regular basis to find out whether they are on the right track or not. Moreover, PKSF also gives importance to the good governance of its POs.

List of literature consulted:

1. Paranjpe, Vivek. 1997. Strategic Human Resource Planning. APL, New Delhi, India.

2. Asian  Development Bank (ADB). 1992. "An Assessment of the Role and Impact of NGOs in Bangladesh". Manilla:ADB.

3. Bangladesh Institute of Development Studies and the World Bank. 1995. Study on Rural Credit for the Poor. Dhaka: BIDS.

4. Brown L. David & David C. Korten. 1989. The Role of Voluntary Organizations in Development. Boston: Institute of Development
  Research.

5. Farrington  John, Anthony Bebbington, Kate Wellard and Dacid J. Lewis (eds.) 1993. Reluctant Partner: Non-Government   organizations, the State and Sustainable Development. London:Routeledge.

6. Valadez   Joseph, Bamberger, Michael 1994. Monitoring and Evaluating Social Programs in Development Countries: A Handbook
   for Policymakers, Managers and Researchers. New York: The Economic Development Institute (EDI). USA.

7. Association of Development Agencies in Bangladesh (ADAB). 1994. Grassroots: An Alternative Development Journal (Quarterly, Vol.3, and Issue-XII, April-June)

8. Christian Commission for Development in Bangladesh (CCDB). 1993. Peoples Participatory Planning Process in CCDB: Spadework.

9. Palli Karma- Sahayak Foundation (PKSF), Annual Report. 1992-1996.

10. Inter  American Development Bank (IADB). 1994. Technical guide for the Analysis of Micro Enterprise Finance Institutions.

11. Shahidur R. Khandakar, Khan Zahed, Khalily Baqui. 1995. Sustainability of a Government Targeted Credit Program: Evidence from Bangladesh. (World Bank Discussion Papers, Vol. 316), Washington D.C, USA. 

Murshada Faces the Flood of 1998

- Md. Ziauddin Iqbal

"Uddipan" a partner organization of PKSF has been implementing its program in Daudkandi thana of Comilla district to improve socio-economic conditions of the rural poor. The working area of this organization spreads over 48 villages of 7 unions under the Thana.

Daudkandi thana, a basin of the rivers Meghna-Dhonagoda, is highly flood prone. It is about 43 kilometers away from Dhaka city. The thana has a total population of above 5 lac. There are 5 colleges, 11 high schools and a good number of primary schools in this area. Most people of the area are engaged in agriculture, fishing, rickshaw pulling, small trading and services. The road communication to the area from Dhaka city is good. Most roads connecting the thana with other towns are paved, but in the villages the roads are unpaved and temporary in nature. During the rainy season the lowland and the village roads go under 5/6 feet water and so boats become the only means of transportation of the people. During the devastating flood of 1998 this area remained submerged under water for about 2 months.

Doghar is one of the villages of West Mohammadpur union of Daudkandi thana. Murshada Begum lives in this village. She is a member of Maddhamoloya Sramajibi Gram Sangstha supported by Uddipan. Murshada has a medium sized CI sheet roofed-house. I talked to Murshada sitting on a bed in her house. I found the house quite neat and clean. As she started unfolding the story of her life to me her husband joined her and helped her. Murshada is 40, but she looks older than her age. She could not study beyond primary level.

Sahidullah, the husband of Murshada is 48 years old and he passed S.S.C. examination. The principal occupation of Sahidullah is business and agriculture is his part time occupation. Before getting access to microcredit facility of NGO Murshada had a family of 7 members-herself, her husband and 4 sons and one daughter. The eldest son Mizan was then 15 and read in class VIII. The second son Alamgir was 10 and read in class III. The third child Asma, the only daughter was 8 and read in class I, the third son Jasim was only 5 and the youngest son Yousuf was a child of 1 year old. At that time Murshada's husband owned 5 decimals of homestead land, 15 decimals of pond land and around 100 decimals of cultivable land. They had an ox, 3 goats and poultry birds numbering 23. The other assets owned by the family included 3 rickshaws, one radio, one bicycle, one tubewell donated by a government agency, a bed and a small grocery. The family had a two-room house with CI sheet roof and jute stick wall. They did not have sanitary latrine and the family’s source of drinking water was tubewell. Murshada received a loan of Tk.1000 for the first time in 1992 from Uddipon, for the purpose of agricultural activity.

There was a notable improvement in the socio-economic conditions of Murshada’s family during the period between her joining the NGO and the onset of the devastating flood of 1998. A significant part of this improvement can be attributed to microcredit. Saiful, the youngest son of Murshada was born. Mizan and Alamgir did not continued their study after class VIII. Now both of them are working as taxi drivers and they are yet to get married. Asma's education ended after class V. She is 15 now and her parents are trying for her marriage. From his childhood Jasim was never interested in school, so he is illiterate and now engaged in agriculture. The remaining two little sons of Murshada, Yousuf and Saiful, read in class III and I respectively at present. Murshada's family was able to increase the size of their homestead land from 5 decimals to 15 decimals. The family also built a three room CI sheet house at a cost of Tk. 90,000. They sold the ox and bought two cows which had given birth to two calves. Moreover, two goats and a good number of poultry birds also were added to the family’s livestock property. The total value of this livestock property was Tk. 22,000 approximately. The position of the family’s other assets was as follows:

All these assets above had a value of about Tk. 70,000. The family of Murshada used sanitary latrine and tubewell for drinking water. The hard time of financial crisis of the family was reduced from three months to one month - the month of November.

Murshada Begum received loan six times from Uddipan amounting to Tk. 22,000 in all and utilized the money for undertaking different income generating activities such as agriculture, small trade, calf fattening etc. Her loan outstanding to Uddipan was Tk. 1400. In addition, she also received loan to the amount of Tk. 8000 from Grameen Bank and purchased a piece of land with the amount. She had savings amounting to Tk. 4793 with Uddipan before the flood commenced. The other members of the family also had savings. This was the pre-flood condition of Murshada’s family.

The devastating flood that hit Daudkandi thana in 1998 lasted for about 60 days. Since Murshada's family did not have experiences of facing such flood before, they could not take any measures to cope with the flood. The crop fields and the house yard went under water first and later on the floodwater entered into the house and the floor of the house went under 2/3 feet water and remained underwater for 1 month. However Murshada's family did not leave the house for safe shelter. They stayed in the house lifting the bed up with bricks. During the flood nobody of her family died of illness. Only Saiful and Jasim suffered from diarrhoea and fever. The flood caused serious damage to the property of Murshada

's family. The extent of damages was as follows:

Murshada's husband and her sons were not able to continue their regular income earning activities and were jobless for 60 days. Consequently they suffered financial loss of Tk. 6000. As the family suffered earning, Murshada could not repay 2 installments of loan amounting Tk.160 to Uddipan which in subsequent days was adjusted against savings by the organization as per mutual consent. To face the effects of flood her family undertook several strategies and measures keeping in mind that none of them should bring any serious disaster in her life after the flood. Thus she avoided to take loan from moneylender. She did not also sell or mortgage any piece of land or any precious metal. She did not also sell any animal property or other assets. Though she had an intention to utilize her savings with Uddipan, but she was not allowed to do so by the organization. So, in order to meet the financial crises she borrowed Tk.1500 from her relative. The family members, excluding the two little children ate less food during the period. The government ran a relief program in the area and Murshada's family received 45-Kg of wheat and 15 Kg rice. Uddipan, also provided her family saline packets, water purification tablets, iodised salt and medical services free of cost during the flood and helped to clean her tubewell after the flood.

After the flood Murshada has started taking measures to reconstruct her life. The flood could not weaken her morale and confidence. Her family has resumed their income generating activities and hopes to regain whatever they lost. Murshada has received microcredit again from Uddipan after the flood. Murshada dreams again to free her family from the vicious cycle of poverty and to make her children happy. She relies heaving on microcredit to fulfil her dream.

Hasna Survives the Flood of 1998

- Sajal Halder

Hasna Begum, a member of Shaplaful Mohila Samity organised by Samaj Kallayan O Palli Unnayan Sangstha (SPUS), was severely affected during the devastating flood of 1998. Hasna lives in the village of "Khudra Tepra" of Ullayl union under Shivalaya thana in the district of Manikgonj.

SPUS is a non-government organization (NGO) working in the district of Manikgonj. SPUS started its activities about 15 years ago as a club with a view to helping the poor. As a Partner Organization (PO) of PKSF, now its operational area spreads over 105 villages of 3 thanas in the district of Manikgonj. SPUS has two offices – one head office-cum-branch office in the village Rupsha and another liaison office-cum-branch office in the village Tepra. Village Tepra is situated near the Aricha Ghat. Aricha Ghat is only five kilometre from Tepra. The SPUS served 3 thanas – Shivalaya, Harirampur and Ghior are situated by the side of the river Padma. The total number of inhabitants in three thanas is about 10 lac. There are 12 colleges, 50 high schools, and a good number of government primary schools, some registered (but not government) primary schools and more than 20 madrashas in this area. Most people of the area are engaged in agriculture, fishing, hawchuring, rickshaw pulling, small trading, service and handicrafts making.

Hasna Begum lives in the village Khudra Tepra which is situated near Tepra and on the southern side of Dhaka-Aricha Highway. The village looks very beautiful. Hasna begum is known as a simple and sincere housewife in her village. She is about 25 years old and her husband Abdur Razzak is about 35 years old. Her family consists of 4 members – husband, herself, one son and one daughter. The elder among the two children is Rita Akter. She is 12 years old and reads in class six. The son, Hasan is 10 years old and he reads in class five.

Hasna is a member of Shaplaful Mohila Samity. I was acquainted with Hasna when I attended her Samity’s weekly meeting. Hasna is one of those who faced flood of 1998. After the Samity’s weekly meeting was over, I reached her house coming past some bundles of bamboo and walking by side of a big pond. The pond belongs to Gulzar master who is a neighbour of Hasna Begum. The pond covers an area of about 8 acres of land. While coming to the residence of Hasna walking by the side of the pond many men and women were seen to take bath in the pond. As I entered into the yard of the house, I got a warm reception from all members of Hasna’s family. Hasna has a small sized one room CI sheet-roofed and straw-fenced house. Hasna’s husband Abdur Razzak was making a shelf of cane. He gave me a tool made of cane to sit beside him. Talking to me, both husband and wife unfolded their story of struggle at the time of flood, 1998. Abdur Razzak now is a craftsman specializing in cane goods. Hasna is a housewife and helps in the works of her husband. They engaged themselves in this occupation only two years back. Before that Abdur Razzak was a rickshaw-puller in the city of Dhaka. Two years back he returned to his village where he was born. Hasna also was born in the same village. Hasna married Abdur Razzak, the son of Md. Sahabuddin of the same village 12 years ago. They were passing the golden days of their life, Hasna said. But the flood of 1998 destroyed the dream of their life. After the flood it was very difficult to run their family. Razzak decided to go to Dhaka and pull rickshaw again, if any other better alternative was not available there. To begin with he got no other job and so started pulling a rented rickshaw. But the income was not sufficient to meet his own and his family’s need. So he kept on trying to get a better job and finally he got one. He started working as a salesman in a shop of cane handicrafts in Dhaka and learnt the trade of making cane-goods. He soon returned to his village and started making cane handicrafts himself. Hasna who is a member of SPUS borrowed Tk. 3,000 from SPUS and helped him to start a cane handicraft making business. The family started earning Tk. 3500 per month. But before receiving microcredit facility provided by SPUS, they lived from hand to mouth. They had no cultivable land. Hasna’s husband Abdur Razzak owned only 6 decimals of homestead land and only 3 decimals of pond land. They had a rickshaw which was bought with Tk. 2300. The rickshaw was sold for Tk. 2000 which was invested in their business. They had a wall-clock and a radio that valued Tk. 500/- approximately. They had only one wooden bed in the house valuing Tk. 700/- only. Hasna’s only gold ornament was her nose pin which was bought with Tk. 200 by her husband. They had a one room CI sheet-roof and straw-fenced house valuing Tk. 2000 only and had no sanitary latrine and tube-well. But Hasna was not frustrated, she was determined to improve her life. She dreamt in her broken house that her son and daughter would go to school and would be educated. They would get job and help them in their old age. But their financial crisis was an obstacle to their dream. She was unable to continue her son’s study in the school. Just at this crisis moment, Hasna was advised by her neighbours to receive a loan from an NGO and to start a business. The hard time indicating financial crisis of her family lasted, more or less, all the months of the year. Hasna decided to get her husband back to the village, to start handicraft business. She became a member of a samity of SPUS and got a loan of Tk. 3000 from SPUS on 25.07.97 and started the business.

They pursued their business seriously and worked hard, even at night. Their sales went up. They increased their production of goods in large quantity. Razzak started to supply some goods to the shop of his x-employer in Dhaka. Hasna repaid the first loan and they needed more capital. So she took another loan of Tk. 5000 from SPUS on 27.06.98. Their business was expanding and took a good shape. Profit was satisfactory and they were almost able to overcome their financial crisis of the past-days. Hasan and Rita got new dresses and started to go to school regularly. Before flood of 1998, the daughter, Rita Akter was eleven and read in class V. The son Hasan was nine years old and read in class four. Both of them did well in the examination. The profit gained from the business was spent for the purpose of their study. The family bought a goat, and by taking proper care of it, they increased it to five. They also bought two hens and increased it to seventeen. They bought a second hand black and white TV at a price of Tk. 4000. They bought wrist watches for their son and daughter at a price of Tk. 400, two stools at a price of Tk. 1200, a bed at price of Tk. 1300 and a table for TV at Tk. 600. However, they did not reconstruct or made any new house for their living. The reason is that one of Razzak’s brothers lives in Dhaka and he is financially solvent. His village house is well constructed and remained unused. Razzak’s family stayed in that house and took care of the house. They made some ornaments, such as, an ear-ring, a nose-pin and two rings of gold that valued approximately Tk. 3000/-. They had also crockery for their regular use. But as they did not use their own house, they did not maintain the house properly. As a result the house was partially destroyed. Also they did not build any sanitary latrine or own any tubewell. It proves that they were not conscious about health education.

Before the flood of 1998, Hasna had taken loan two times from SPUS amounting to Tk. 9000 of which first loan of Tk. 3000 was fully paid and the second loan of Tk. 6000 was partially paid. Hasna’s loan outstanding was then Tk. 4800. At the same time she deposited savings amounting to Tk 145. Before receiving microcredit facility, Hasna’s financial crisis remained round the year. But after starting their business by taking the loan from NGO, their financial crisis period was reduced to 3 months of the year, – Ashar, Sraban and Vadhra.

Suddenly Hasna became emotional. She told me that they were able to overcome the crisis of bad days but it was difficult for them to overcome the loss of flood. The flood of 1998 lasted for 3 months in their area. To begin with crops went under water. They thought water would decrease soon. But unfortunately it was the opposite. Flood water started rising and the house yard went under water. They were frightened. They didn’t become hopeless because they had the experience of facing the flood of 1988. But beyond all past experiences, the flood water entered into the house of Hasna. They tried first to stay in the house raising the bed. But it was not enough, flood water went on rising. Finally, they had to leave their own house and took shelter in Gulzar Master’s house which was a two storied-building and situated about 150 yards away from their house. Many people of their village took shelter in that house and all lived together for about a month. The flood damaged a lot of vegetables and different types of trees mainly fruit and bamboo trees. Hasna lost vegetables of about Tk. 1000, fine Jackfruit-trees of Tk 7500/- and 10 bamboo trees of about Tk. 2000/-. Their house was fully damaged which had a value of Tk. 2000. Different furniture such as table, and bed and crockery, were partially damaged which had a value of approximately Tk. 1000. In addition 15 hens valuing Tk. 800 also died. Moreover they could not work three months at the time of flood for which they lost Tk. 12000.

Basically they had no preparation to face the flood although they had experience of 1988 flood. When the flood started, they had a hard cash of Tk. 7000/- which was spent during the time of the flood. But that was not enough. Hasna took a loan Tk. 1000 from an uncle and also purchased grocery on credit for Tk. 500 from a nearby shop. A considerable amount of their hard cash was spent for medical treatment of Hasan and Razzak who suffered from diarrhoea and fever. Her daughter Rita Akter did not suffer from any disease and she was safe.

During the 3 months of flood, Hasna could not pay the weekly loan installment of one month, i.e. 4 weeks. SUPS also did not put any pressure to repay the loan. At the end of the flood, she paid the 4 overdue installments in the month of November. In the meantime her husband Abdur Razzak contacted his ex-employee in Dhaka and took a loan of Tk. 2000 in order to resume his business again. He did not pay the loan in cash but in kind supplying handicrafts produced by him within 3 months. His ex-employer took no interest directly but when he received the goods, he paid at a lower rate. Razzak told that he lost Tk. 600 by supplying goods to him and the effective rate of interest was more than 100%. Hasna needed capital to run the business. She got a new loan of Tk. 8000. She paid the loans which were taken at the time of flood from his uncle and the shopkeeper. It is mentionable that at the time of flood they received very little support from NGOs and local government. She received only 4 kg of rice, 1 kg of dal from Proshika, and 15 kg of rice, 1 litre of oil, 1 kg of salt and 4 kg of dal from Prizom Bangladesh and no support from the Union Council and her organization, SPUS. At the time of flood, she sold two hens and a goat for Tk. 400 which was spent for meeting daily expenses. Hasna did not receive any loan from savings at the time of flood because she deposited only 145/- taka as savings to the organization. She felt the importance of savings during the flood time.

Hasna and her husband Abdur Razzak were very much active to overcome the loss or damage suffered during and after the flood. Soon after the flood, they started to produce cane-goods in full capacity. They needed money to purchase raw materials. But there is no provision to get two loans at a time from SPUS. Therefore she became member another NGO, Proshika and took a loan of Tk. 7000 in February, 1999. When I asked her how she could get a loan of Tk. 7000 from Proshika. She told that in the year 1996, she was a member of a group of Proshika and took a loan of Tk. 3000 which was fully paid. So proshika knew her and her repayment behavior and gave her Tk. 7,000/-.

Hasna and her husband Abdur Razzak have overcome the disastrous impact of the flood with the help of microcredit and now their earning is quite normal.