Annual Report 2012

2012-13
ASA
Vision
The vision of ASA is to establish a poverty free society.
Mission
The institutional mission of ASA is to support and strengthen the economy at the bottom of
the socio-economic pyramid by facilitating access to financial services for the poor,
marginalized and disadvantaged.
Values
Innovative and non-conventional management for achieving cost-effectiveness and
sustainability
i
From the President’s Desk
We have published this Annual Report
according to the fiscal year i.e. from July
2012 to June 2013 instead of calendar year.
This change has been made to bring in
compatibility with prescriptions of the
Microcredit Regulatory Authority (MRA) of
the government. Henceforth, we will bring
out ASA Annual Reports following this new
timeframe.
The period spanning over July 2012- June
2013 was very critical for us as well as the
country as political turmoil adversely
affected the economic and normal daily life
of people. Our major program microfinance
had to face some tougher situations due to
this unrest. In addition, these unpleasant
situations were challenging the planned
ii
productivity and growth of the organization.
But, it was our committed steadfastness and
intensive monitoring that enabled the
organization to address these challenges.
In spite of being so stressful a situation, it
was memorable for us, because during the
year the organization embraced international
recognition once more as one of the best
NGOs of the world from the prestigious
Switzerland based magazine The Global
Journal. The recognition has added a new
feather to ASA’s fame alongside brightening
the country’s image in the international
arena. Besides, during the period the
organization initiated a number of
philanthropic programs for the wellbeing of
the poor and underprivileged.
Microfinance, the core program of ASA
continued its growth in the last fiscal year
amid some negative trends that dominated
the country’s economy as well as the world.
ASA disbursed approximately Tk. 9618.26
crore (USD 1.2 billion) among its five
million clients during the year. The
repayment rate of loan program was at a
formidable figure of above 99 per cent
although economy at the bottom of the
pyramid suffered a setback.
The new welfare programs introduced
during this fiscal year are: Raising awareness
on some common but crucial health issues
among the group members who are mostly
poor
and
illiterate
and
Providing
physiotherapy and yoga treatment to the
traumatized patients especially those who
live on hard labor. Employees involved in
the credit program have been implementing
the program of consciousness building on
different health issues to change habits and
lifestyle of target groups aiming at
preventing infectious and communicable
diseases. No additional cost has been
incurred to run this program because the
regular staff members of ASA have been
playing role of motivators in addition to
their routine duties.
Hope for the Poorest (HP), an associated
organization of ASA, extended its Health
and Water, Sanitation and Hygiene (WASH)
program to more backward regions in the
year. Three new Primary Healthcare Centers
were opened in remote areas of Jamalpur,
Netrokona and Kishoreganj districts of the
country. The WASH program has been
progressing with considerable success in two
coastal towns of Satkhira and Bagerhat to
improve the water supply, sanitation and
hygiene condition of the poor and slum
dwellers.
ASA University, a fellow-organization of
ASA arranged its first convocation in April
2013 awarding certificates to one thousand
students in presence of their guardians on
completion of graduation from the
university. It was a landmark occasion for
the university which organized such a gala
event within six years of its inception. By
timely holding convocation for awarding
academic credentials to the graduates, ASA
University reaffirmed it’s commitment to
become an ideal private institution for
higher education in Bangladesh.
A synopsis of findings is included in this
Annual Report on a survey conducted to
assess the impact of microfinance on the life
and mode of livelihood of ASA clients.
Research Section of ASA conducted the
study professionally following scientific
research methodology. The study has been a
part of the set trend for periodic impact
assessment of its program in every two to
four years since 1999. So far ASA undertook
seven
such
studies
to
facilitate
comprehensive accumulation of clients’
feedback which we consider a valuable
input for improving our program strategy. I
hope, conclusion and recommendations of
the study will be useful to the policy makers,
practitioners and, managers of the
microfinance institutions.
At the end, I would like to express my
heartfelt thanks to my colleagues, fellow
organizations, individuals and well wishers
who extended support to us in stepping
ahead to eradicate poverty and disparity
from the society.
Md. Shafiqual Haque Choudhury
President
ASA.
iii
Interpretation of the
Logo of ASA
The logo of ASA contains two human hands at the bottom, the shining sun in the middle and
the circle of the horizon on the top.
The sun in the logo symbolizes the source of all energy or resources, the two hands are the
hands of the struggling poor people and the circle at the top is the horizon of the eternal blue
sky.
The logo therefore reflects the meaning that poor people are capable of gripping the source of
energy or resources through widening their knowledge and reach up to the horizon with the
institutional support of ASA.
iv
Contents
Vision
i
Mission
i
Values
i
From the President’s Desk
ii
Interpretation of the Logo of ASA
iv
Governing Body
1
Outline
2
Case study
3
Savings
4
Insurance
4
Mini Life Insurance
5
Loan Insurance
5
Foreign Remittance Service
5
Agribusiness Development Project (ADP)
6
Case study
7
ASA The Unique Features
8
Milestones
10
Achievemtnts & Recognitions of ASA
12
Management Team
13
Organogram
14
Health-welfare Program
15
Primary Education Strengthening Program
16
Guardian’s remarks
17
Health Awareness Program
18
Exposure and Internship
20
Technical Assistance (TA) Services &
Managing Microfinance Program Internationally
21
Hope for the Poorest (HP)
23
ASA University Bangladesh (ASAUB)
25
Impact Assessment Report 2013 of ASA Microfinance Program
27
Publications
35
ASA Coverage
36
Plan for 2013-2014
37
Mrs.Taherunnessa Abdullah
Chairperson
Mrs.Taherunnessa Abdullah
Mr. Mahbubul Alam
Mrs. Husniara Huq
Mrs. Husniara Huq
Member
Mrs. Mahmuda Islam
Member
Mr. Matiur Rahman Chowdhury
Member
Mrs. Mahmuda Islam
Mr. Matiur Rahman Chowdhury
Mr. Alauddin Ahmed
Mrs. Rabeya Akter Choudhury
Mr. Alauddin Ahmed
Treasurer
Mrs. Rabeya Akter Choudhury
Member
Md. Shafiqual Haque Choudhury
Member Secretary
Md. Shafiqual Haque Choudhury
01
Governing Body
Mr. Mahbubul Alam
Member
Outline
Microfinance Program
Microfinance program of ASA reached about five million people in the last fiscal year.
As a potent weapon in uprooting poverty, microfinance has been assisting the poor
effectively to improving their living status and livelihoods significantly. And its
necessity to the poor as well as the rural livelihoods remains indisputable. The people
living under the poverty line and the poor with lower income are still out of any
institutional or formal credit services. And this financial state has made microfinance
service of the MFIs almost a sole option for the downtrodden segment of the society.
ASA microfinance program provides a range
the landless poor, marginal farmers and
of financial services to the poor broadening
small
the scope of financial inclusion of those that
pursues to make the microfinance program
are not served by the conventional banking
more poor-friendly, efficient and suitable so
system. Most of the ASA clients are women
that the service recipients could reap the
who use this loan for better management of
maximum benefit out of the loan. The
their households, finance and to engage in
organization
various income generating activities. ASA
service
offers collateral free credit to the door step of
number of clients in a hurry.
entrepreneurs.
ASA
concentrates
quality
rather
relentlessly
at
improving
than
increasing
02
It focuses on helping the borrowers in
access this product complying with the least
utilizing the loan properly so that they are
formalities and without condition of tough
able to increase income empowering them to
group guarantee. During July 2012 to June
come out of poverty trap.
2013 period, ASA disbursed an amount of
Tk. 100 billion loan among its five million
Flexible and innovative approach of ASA
clients in response to the growing demand of
microfinance program has made the service
the borrowers for bigger loans to implement
attractive to the poor. The loan aspirants can
expanding projects.
Case study
My name is Sarity Rani. I live in a village
in 2005 taking a loan amounting to Tk.
Baro Barial under Manikganj district.
2,000 from ASA-Arandrabad branch under
Presently, I’m living a happy life with my
Manikganj district. Alongside, the business
husband and three kids. But the initial
on bamboo handicrafts, I started cultivating
period of my married life was not as easy as
vegetables in a small piece of land. My
it is now. Because my husband Disesh Das
present net income is Tk. 50,000 per
was financially insolvent to maintain the
annum. I built three houses with corrugated
family. Starving was a common practice in
roofing sheets out of my earning. I have
our family at that time.
been
able
to
create
employment
opportunities for four people providing two
03
To overcome such a tough situation, I
permanent jobs and two temporary ones in
started a business on bamboo handicrafts
my small venture.
Savings
ASA developed its microfinance program as
access to it in formal institutions of
a complete financial solution for the
Bangladesh. ASA’s Long Term Savings
borrowers who confront multifaceted needs
program is a panacea for the poor that
and risks frequently. ASA clients generally
encourages savings for a long term in spite of
belong to poor and lower income group that
their limited solvency.
are
economically
vulnerable.
Financial
uncertainty chases them at all times and for
Voluntary Savings:
this, they can’t lead a stable and peaceful life
save money in voluntarily savings programs
which adversely affects in attaining success
at any time according to their ability for
in their business and income generating
undefined period and can withdraw it as and
activities. This is a big hurdle for the poor to
when they feel to meet their needs.
come out of poverty trap and is equally a
Depositors can withdraw Tk. 500 (Rural) and
challenge for the MFIs to protect them.
Tk. 1,000 (Urban) in weekly group meetings.
ASA borrowers can
Otherwise savers may withdraw from the
Taking
into
consideration
of
the
respective ASA branch offices.
vulnerability of borrowers, the organization
has given emphasis on savings of the clients.
Insurance
Members can meet odds or critical situation
that may suddenly appear by their savings.
Furthermore, ASA allows its clients to
Life expectancy of the people of Bangladesh
withdraw their deposit anytime they like to
increased at a faster pace in the last two
meet financial obligations. This is an
decades which also witnessed a steady
exception because many MFIs of the country
economic growth and accelerated poverty
do not allow such withdrawal. ASA has been
reduction. In spite of such progress, a
using the savings money of the borrowers as
sizeable number of middle-aged rural people
a revolving fund for microfinance program.
often
fall
victims
of
severe
health
complications. This is a big risk for the poor
Two types of savings programs are offered:
families because sudden death of an
Long Term Savings and Voluntary Savings.
important earning member push them into
the financial ruins.
Long Term Savings: Generally borrowers of
microloans are poor and they have the least
To
address
these
uncertainties,
ASA
opportunities to save money for a long term
initiated insurance program for its clients
in schedule banks. Although, saving is an
and their spouses. ASA introduced two
important weapon to cover emergencies and
types of insurance policies: Mini Life
future financial risks but poor have limited
Insurance and Loan Insurance.
04
Mini Life Insurance
Loan Insurance
Loan account holders of weekly repayment
ASA charges a premium of Tk. 10 per 1,000
category deposit Tk.10 on weekly basis as
(One thousand) taka for primary loan and
savings for insurance. On the other hand,
loan account holders of monthly repayment
category deposit Tk.50 per month as
Tk. 5 per 1,000 (One thousand) for special
loan
to
provide
this
insurance.
The
premium. Inheritors receive 6 (six) times of
outstanding loan is adjusted in full out of
the
dies.
insurance benefit if an indebted member or
Otherwise, the depositors get refund of their
her husband/guardian dies. During the year
savings amount with interest on maturity.
July 2012 - June 2013, ASA paid Tk. 235
total
deposit
if
a
member
During the year July 2012–June 2013, ASA
paid Tk. 39.5 million as claim to the families
of 7,578 deceased members.
million as claim to the families of 21,625
deceased members.
Foreign Remittance Service
This service of ASA is being provided offering quick and safer money channeling facility to
the relatives of Bangladeshi immigrants. The service has been arranged in collaboration with
National Bank Limited and Western Union Money Transfer since 2008. The organization
engaged 1700 of its branches in 64 districts up to June 2013. An amount of Tk. 7499.52
million foreign remittance was transferred to 302113 clients through this service during the
last fiscal year.
05
Agribusiness Development Project (ADP)
Although one of the world's poorest and the
Bangladesh,
most
countries,
system since long has over 70 percent people
Bangladesh has made major strides to meet
depending on agriculture either directly or
the food needs of its increasing population
indirectly. Currently, 55 percent of total
densely
populated
through enhanced domestic production. The
arable land is devoted mainly to rice and jute
cultivation, although maize and wheat
production has increased in recent years.
The country's main endowments include its
relying
on
agro-economic
workforce of the country is employed in
agriculture. Under such a reality, ASA
designs and implements the Agribusiness
Development Project to realize agriculture
potentials by assisting and encouraging
small
and
medium
scale
agro-based
vast human resource, fertile agricultural land
entrepreneurs. This project activities include
and relatively abundant water.
servicing of agriculture equipments and sale
of inputs (seed, plantlets, fingerlings, chicks,
In this context, to create momentum in the
calves and fertilizer); collection, storage,
sector, Agribusiness Development Project
processing, and transport of agriculture
was started in March 2007. On a tripartite
produce
agreement among Asian Development Bank
(ADB), Bangladesh Government and three
and
high-value
commercial
production, especially of nontraditional
commodities.
big NGOs- ASA, BRAC and TMSS, the
The project has been providing guidance in
Agribusiness project is being implemented
business planning and business financial
throughout the country.
control to the entrepreneurs. Besides,
06
it imparts training on livestock, fisheries and
addition to the agriculture produce leading
high-value crops. It also provides marketing
to economic growth and employment in
support to agribusiness clients with special
rural Bangladesh. During the last fiscal year
attention
2,918 entrepreneurs were provided with loan
to
small-scale
women
entrepreneurs.
amounting to Tk. 300 million under the
Agribusiness Development Project all over
The project resulted in increased value
the country.
Case study
07
A jubilant young man Mojibur Rahman has
loan and expanded the business.
turned
successful
Through continuous efforts of last couple of
entrepreneur. After completing high school
years Mojibur established a hatchery
education he went abroad as a worker and
producing sufficient quantities of fish fry to
stayed for five years. He failed to change
meet the demand of his locality. His fish
his fate with the overseas employment and
farm created jobs for 14 people. His
came back home empty-handed. But he
remarks
was not disheartened. He took training on
entrepreneurial success: “Last year I earned
modern agriculture and fish production. In
one million Taka as net profit from this
2005, Mojibur started fish production in an
farm. I’m expecting 1.3 million Taka as
abandoned pond of his family. Afterwards,
profit from fish production and hatchery
he contacted local ASA office and took a
business this year.”
himself
into
a
echoed
tremendous
ASA
The Unique Features
ASA has achieved sustainability within a couple of years from the starting of its
microfinance program. The innovative policies of the management and cost effective
approach in all respects were key to make it possible within the shortest possible time.
Besides, strong determination of the management was also an important factor for attaining
self-sufficiency with a steady growth. There are some specific reasons behind this success.
Key features of ASA's innovative management and factors behind success in its overall
activities are mentioned below:
Dynamic and forward-looking leadership
officials as well as between officials and
Self-explanatory written working manual
clients
Decentralization
Always
and
delegation
of
strong
monitoring
and
authority to the branch level officials
supervision from all levels
Participatory process in decision making
Simple and transparent accounting and
Specialization in microfinance and rapid
record- keeping system based on a format
expansion policy
Opportunity for sharing problems in the
Costless
and
faster
recruitment
residential office
procedure
Low-cost culture practiced from top to
On-the-job training approach (Each one
bottom
teach one methodology)
Effective fund management
Simple
and
structure
cost-effective
without
a
branch
professional
accountant
Simple
Members' group transfer among the Loan
Officers after every six months
Diversified loan products to meet clients'
and
least
hierarchical
demand
organization
Simple and shorter loan processing
Easy and close communication among
No collateral for providing loans
08
Loan disbursement within 07 (seven)
portfolio per Loan Officer and high
days of membership
fund-revolving rate minimize total fund
Savings ( short and long term) and Mini
requirement
Life Insurance for the clients
Simple and standardized accounting
No group guarantee required for providing
procedures
loan
No extra full time office assistant,
No bindings for being present in the
technical personnel or security guard
group meeting
Education loan for members' children
Male
loan
for
Features Safeguarding Sustainability
members'
husband/guardian
Borrowers are monitored and scrutinized
Opportunity to withdraw savings at any
by the Branch Manager
time
Staff members provide ASA with a
Special loan for natural disaster affected
security deposit (earn interest)
areas
Joint signature required for withdrawal
Health assistance to the clients without
from branch's bank account
taking premiums
Required daily withdrawal allowed
Cheques are preserved by different Loan
ASA Sustainable and Cost-effective
Officers
Microfinance Model
Cash book is maintained by Loan
This special cost-effective method of ASA
Officers on a revolving basis
helps a new branch to earn an adequate
Loan Officers rotate groups after every
income to be self-reliant within 12 months of
six months
its inception.
District Managers are based in the field
Central Office staff visit field regularly
Self-sufficiency of a Branch: Key Factors
09
Regular internal audit
Staff members are selected quickly equiping
Annual external audit
through short and practical training
Occasional and surprise branch visits by
The branch office structure is standardized
the President of the organization
and furnished with adequate but simple
Full automated A/C, MIS, generated by
furniture
ASA microfinance management system
Branch expenditure is standardized with
(AMMS).
set cost ceilings
The system was developed in-house by
A high number of borrowers, high
its own IT experts.
MILESTONES
Foundation Phase (1978-1984)
• Awareness building of the poor for enabling
them to perform the necessary social function.
• Legal program to fight against injustice and
ensure access to land.
• Training for the members and the rural
journalists.
Reformative Phase (1985-1991)
• Women
empowerment
through
the
improvement of health, nutrition, education,
sanitation and credit.
• Post-disaster management program.
• Mini-irrigation program.
Program Specialization Phase
(1992- to date)
• Microfinance (credit and savings program):
From time to time expansion, quality
improvement in credit delivery systems,
modification, etc. are being adopted to meet
demand of the valued customers at home and
abroad.
1992
1993
ASA being specialized in
Microfinance
program
introduced Small Loan, Power
Pump Loan and Housing Loan for
the
clients.
These
credit
programs were initiated as per
demand of the clients.
Small Savings program was
introduced for the clients
enabling them to save at least
small amount of money in their
savings accounts to use that
during hardships. ASA started
providing Technical Assistance
(TA) internationally, enhancing
capability of other interested
international organizations to
replicate ASA's cost-effective and
sustainable microfinance model
to help assist the poor of their
respective countries.
1994
1995
Loan Insurance Premium System
was introduced to shield the
inheritors of the clients on the
latters' sudden demise against
the risk in paying back the
outstanding loan amount.
Flood is a common natural
calamity in Bangladesh that
damages lives and livelihoods on
a large scale almost every year.
Considering this frequent flood
an interest free rehabilitation
loan was launched to assist the
victims to overcome such crisis.
1996
Savings provision against loan
insurance was introduced.
1997
Small Business Loan and
Voluntary
Savings
were
introduced.
2001
ASA declared itself a completely
grants/donor free organization.
10
2003
2004
2005
2006
11
Small Entrepreneur Lending (SEL)
was introduced for the small
entrepreneurs. A product named
Hardcore
Poor
Loan
was
introduced for the poor who were
not able to receive small loan.
Mini Life Insurance (Female) was
introduced to provide the poor
with insurance coverage to meet
emergencies due to any sudden
death within a loan cycle.
Education Loan was introduced
for the members' children who
study in different educational
institutions
at
various
class/grade/levels.
Business
Development Service loan was
introduced
to
rehabilitate/reorganize
the
income generating activities of
the members affected due to
unexpected situations/damages
caused by flood, fire, theft, etc.
Mini Life Insurance (Male) was
introduced
to
cover
the
incidence of death of the
husband/guardians of the clients.
Small
Loan
(Male)
was
introduced to help the male
members of clients to run
different projects. Monga (Lack
of Employment) Loan was also
introduced in Monga affected
areas. Short Term Loan Program
was arranged for clients' urgent
needs. Long Term Savings (LTS)
was introduced to support clients
during hardships.
Information Technology Loan
was introduced to help the
clients facilitating their access to
the modern technology supply
markets
and
make
their
participation in commercial uses
of the technology.
2007
Agri-business
Loan
was
introduced to promote all kinds
of agro-related businesses and
assist the small farmers in their
cultivation.
2008
ASA introduced Remittance
Service under Western Money
Transfer Program.
2009
ASA introduced CNG Auto
Rickshaw and Power Tiller Loan.
OTHERS
2002
&
2006
ASA Staff and Family Welfare
Fund
2003
ASA Insurance for Staff
2005
Medical Assistance grant for
member's treatment.
1995
2001
Assistance for other NGO/MFIs
Providing Fund for Partner
NGOs/MFIs
Channeling Fund/Soft Loan for
other NGOs/MFIs
2006
Associated Organizations
ASA University Bangladesh
(ASAUB)
2010
Hope for the Poorest (HP)
Achievements & Recognitions of ASA
1993
Provider of TA Internationally.
1994
Acknowledged to attain
Financial Self-Sufficiency
(FSS).
1998
Selected as International
Service Provider (ITSP) by
UNDP.
2001
ASA declared itself
donor-free Institution.
2005
ASA has been placed in all
the six categories with
exceptionally best results in
the MIX report titled "2005
MIX Global 100: MFI League
Table" presented in the MCS
2006, Canada.
2007
Selected as the top MFI of
the world by the Forbes
magazine, USA.
a
2008
2002
2004
Selected as the Best TA
Provider Globally (by UNDP).
ASA provided technical,
managerial and consultancy
services to establish ASAI
HC based in Mauritius and
its subsidiaries in India,
Pakistan, Philippines, Sri
Lanka, Cambodia, Ghana
and Nigeria. ASAI HC
reached 700,000 clients
strength within a few years.
2011
2012
ASA has been awarded with
the "Banking at the Bottom
of the Pyramid" by the
Financial Times, London,
UK
and
International
Finance Corporation (IFC)
jointly.
ASA has been selected as
one of the five finalists MFI
by
the
FONDAZIONE
GIORDANO DELL'AMORE,
Italy.
Global
Magazine
of
Switzerland chose ASA as
one of the 100 top NGOs of
the world.
12
Management Team
President
Md. Shafiqual Haque Choudhury
Senior Deputy President
M Abdul Aziz
Executive Vice Presidents
Mr. Sushil Roy (HR)
Mr. Ranesh Acharjee, FCA (Accounts)
Md. Fayzer Rahman (Operation)
M A Halim Khan (Operation)
Directors
AKM Aminur Rashid (Operation)
Mohammed Azim Hossain (Finance & MIS)
Md. Taufiqul Islam Chowdhury (Accounts)
Sheikh Mozahar Uddin (HR)
Gulam Mustafa (Legal Affairs)
13
14
EVP
Accounts
Accounts
CENTRAL
Foreign
Remittance
Director
Accounts
Audit
Branch
Regional Office
District Office
Agribusiness
Program
EVP
Operation
EVP
International
Affairs
Research
SR. DEPUTY
PRESIDENT
PRESIDENT
Communications
& Documentation
GOVERNING BODY
GENERAL BODY
Risk
Management
ASA
organogram
Operation
FIELD
IT
Logistic
Education
Program
Director
HR
HR
EVP
Finance, MIS
& Partners
Director
Finance & MIS
ASA Tower
Director
Legal Affairs
Health-welfare Program
ASA has been providing financial assistance
People of low income class and the poor
to its ailing clients, staff and their family
become helpless when they fall ill or are
members to meet the treatment costs of
affected
various diseases they are suffering from. As a
hospitals and clinics are established in the
part of the organization’s welfare plan to its
country but the poor are unable to afford the
clients and staff this program has been
services as they are costly for them to bear.
initiated to protect from permanent physical
Considering the helplessness and agonies of
inability caused by diseases and illness
the poor borrowers who are victims of major
threatening them into extreme poverty.
and critical illness, ASA came forward with
by
diseases.
Although,
many
Health Assistance Program to support them
As a developing country, Bangladesh is yet
for availing medical treatment. This program
to introduce health insurance for its citizen.
provided Tk. 28.6 million as health grants to
Besides, health services and treatment
the members, staff and their families of ASA
facilities
for meeting their treatment costs during July
offered
by
the
state
owned
institutes as well as private hospitals can’t
address the demand of treatment need of all
people especially the poor.
15
2012 to June 2013 period.
Primary Education Strengthening Program
At present, in Bangladesh primary school
additional tuition support. As most of the
enrollment is about 99 percent. However,
poor parents are not educated they cannot
there is a huge dropout rate of approximately
assist
30 percent, most of which happens for
overcoming their study related problems.
students before reaching grade five. This
During 2012-13 fiscal year 50031 students
dropout rate is especially high amongst
were
children of poor households. Under such a
Strengthening Program of ASA through 1895
reality,
Strengthening
learning centers throughout the country.
Program of ASA is being implemented to
Each centre provides learning facilities with
reduce dropout with learning support to the
a teacher supporting about 25 students.
pupils of poor families.
Total number of students who received
Primary
School
their
children
enrolled
in
in
coping
Primary
and
Education
educational support under the program,
Primary Education Strengthening Program
comprised 24034 boys and 25997 girls.
(PESP) played a significant role in improving
quality of education of the children of poor
In a brief impact assessment on PESP, it was
families that resulted in better enrollment
revealed that tuition under the program
and retention at primary schools during the
significantly improved learning attitude and
period from July 2012 to June 2013. The
attendance of students in schools. Guardians
program focuses on less privileged students
of the students praised the program for
of the society in which guardians are not
developing
affluent enough to provide their kids with
children.
learning
affinity
of
their
16
Guardian’s remarks
A teacher of the centre gives lessons to the
students passionately. That’s why the young
learners eagerly wait for coming here. This
practice increased curiosity of students
about learning. My kid had better result this
year than that in the previous year. In the
last school examination he secured a
position among top ten of the class. But
earlier he was a tail-ender. Now he can
spell words rightly and pronounce them
correctly. My son’s reading and writing
skills have improved radically.
17
Sonera Khatun
Mother of Shakib, a student of
Rojonigandha Learning Centre.
Allahar Dargha,
Kustia.
Health Awareness Program
During the last four decades Bangladesh
adopted a number of measures for ensuring
health for its citizen. In consequence,
maternal and child mortality dropped
drastically, immunization program gained
huge progress and the country was
recognized as the best among the SARRC
countries for its achievement. Nonetheless,
some other health aspects like malnutrition,
water-borne and easily communicable
diseases still pose big threat for the sound
public health. The poor, especially people at
the bottom of the socio-economic pyramid
are suffering most from these maladies.
The topics related to prevention of water
borne, easily communicable and common
diseases infecting people easily are
discussed in weekly meetings.
Under such a health status of the country,
Health Awareness Program (HAP) of ASA
has been building consciousness among its
group members and clients on healthy habits
and pursuing hygienic habits in daily life.
households, cleanliness of kitchen and
ASA employees meant for microcredit
program are assigned to implement the
health awareness program beside their
regular responsibilities. Participants are
motivated for using safe water, personal
cleanliness,
care
of
pregnant
mother,
diarrhoea and its prevention, tuberculosis
and its prevention and remedies, improving
sanitation
and
hygiene,
cleanliness
of
covering food items, prevention of arsenic
contamination, etc.
The HAP is being conducted throughout the
country in about 3,000 branches. Steps have
ASA started this program in January of 2012
with an aim to sensitizing the people, most
of whom are illiterate and less privileged.
been taken to scale up the program to cover
hitherto unattended areas as well as for the
common citizen of the country.
18
19
Month
Discussed Issues
1
July
Balanced diet, nutrition and prevention of malnutrition
2
August
Diarrhoea and its prevention
3
September Worm Infection and their prevention
4
October
5
November Child’s food, upbringing and physical growth
6
December Anemia and its prevention
1
January
Personal hygiene and its necessity
2
February
Usage of safe drinking water and prevention of arsenic toxicity
3
March
Prevention of diseases through hand washing
4
April
Using hygienic toilet and washing hands after using it
5
May
Cleaning the surroundings of residence and its importance
6
June
Diseases carried by mosquitoes and flies and their prevention
Taking care of new born babies and child
Year
2012
Sl
members on an average. The under
mentioned table depicts topics that were
shared with the target people during the July
2012- June 2013.
2013
During the July 2012 to June 2013 period the
following topics were discussed with over
five million members of ASA. A single topic
was discussed in 2,52,000 groups in each
month and each group comprises 20
Exposure and Internship
Influence and outreach of microfinance are
increasing globally day by day. The
proclamation of 2005 as the International
Year of Microcredit made by the United
Nations has received massive attention from
the international forums. At present,
microfinace is being widely considered as a
pivotal tool to alleviate poverty. Bangladesh
has been considered as the pioneering
country of microcredit for its successful
operation in poverty reduction. The
front-lined MFIs and NGOs of the present
world emerged and were developed in the
country. These MFIs have been playing very
important role in improving the living
standard of millions of poor and
underprivileged by offering diverse financial
services.
ASA has been considered as one of the best
managed MFIs of the world for its unique
model which delivers suitable financial
services to about five million households of
Bangladesh and lot many deserving people
in ten countries of Asia and Africa. ASA
received recognitions and appreciations from
across the world for its innovative
methodology and approach to combat
poverty. Its effective and efficient poverty
reduction role has drawn attention of
students,
academicians,
researchers,
microfinance practioniers, government and
non government officials, bankers and
investors from home and abroad.
Visitors come from different parts of the
world to ASA to get acquainted with
technical knowhow, practical knowledge,
management and policies of ASA model
every year. During the last fiscal year, 67
foreign nationals paid visit to the
organization.
The organization offers internship courses to
the students of college and university.
Currently, many colleges and universities
across the world have adopted microfinance
as a course or program in their academic
curriculums.
Students
and
teachers
especially from the universities of Europe
and America normally find it convenient to
study ASA microfinance model as a part of
their academic degree requirements. Last
year 38 students completed their internship
courses at ASA under the guidance of its
Exposure and Internship unit.
20
Technical Assistance (TA) Services
&
Managing Microfinance Program Internationally
Globally, the role of microfinance in poverty
reduction is beyond question. The drastic
change of poverty in the country over the
Philippines
last decade is a testimony to the fact. The
international community has acknowledged
the achievement of microfinance and lauded
the role of MFIs for the success. To alleviate
poverty, ASA has developed an exclusive
model for microfinance which is sustainable
and efficient and capable of meeting
Nigeria
challenges irrespective of locations and
circumstances.
For
its
uniqueness,
ASA
model
of
microfinance received a series accolades
from different international organizations
including
Asian
Development
Bank;
Microfinance Information Exchange (MIX),
Washington;
Forbes
magazine,
Ghana
USA;
International Finance Corporation (IFC);
Financial
Times,
London
and
Global
Magazine, Switzerland. These organizations
acknowledged ASA as one of the best
managed, sustainable and efficient MFIs
with an outreach to millions of clientele
established over a short span of time.
21
India
Inspired by the outstanding success of ASA
microfinance program, many countries and
organizations of the world have sought
Sri Lanka
cooperation as well as technical assistance to
study the efficacy of this model with the aim
of borrowing good practices for their
respective organizations and countries. ASA
responded
positively
organizations
and
to
these
countries
to
curious
share
Pakistan
technical knowhow for poverty alleviation.
Gradually, ASA model has been lent to a
number of developing and underdeveloped
countries of Asia, Africa and Latin America.
Since 1993, ASA has been providing
Cambodia
technical assistance through its trained and
expert manpower to more than 15 countries.
ASA is managing microfinance program
globally by deployment of skill staff,
developing automation system, training,
Kenya
upgrading and providing operation, accounts
and audit related services through ASA
International,
a
Mauritius
based
organization. This international management
effort has been undertaken in a number of
Uganda
countries including India, Pakistan, Sri
Lanka,
Cambodia,
Philippines,
Ghana,
Nigeria, Uganda, Kenya and Tanzania for
quick and sustainable poverty alleviation
using microfinance as a tool.
Tanzania
22
Hope for the Poorest (HP)
Since 2008, Hope for the Poorest (HP) started
biodiversity, life and livelihoods of coastal
its mission to deliver services to the poor
areas. HP is planning to launch new
and the underprivileged living in remote and
programs gradually to assist the suffering
isolated areas through initiating benevolent
people of the coastal and threatened regions.
programs. HP was founded by ASA aiming at
23
providing necessary services like primary
During the period from July 2012 to June
health care, safe water supply, improving
2013, HP reached many areas of Bangladesh.
sanitation and hygiene for the needy people.
Besides, ongoing programs were fortified to
HP’s programs especially target to help
render maximum benefit to the target
climate victims and the people those who
groups.
are considered as the most vulnerable to
Program of the organization was launched in
climate change. Already the country has
three districts of the country: Jamalpur,
started facing impact of climate change. A
Netrokona and Kishoreganj. In total seven
number of devastating cyclones caused huge
Primary Healthcare centers of HP delivered
damage to its southern part. Intrusion of
services to ten thousand of patients last year.
saline water is making adverse impact on the
Health treatment in these centers is
This
year
Primary
Healthcare
complemented with necessary medicines at
hygiene practices among students and
discounted price.
adolescents of slumss a series of awareness
raising sessions were conducted as part of
Elderly people and children are the majority
this program during this period. In addition,
among the healthcare service recipients.
Community Based Organizations (CBOs)
Some diagnostic tests including diabetic
were formed with the participation of men,
tests, pregnancy tests are done in the centers
women and adolescent boys and girls living
at subsidized costs. Cares of pregnant
in slums to raise voice asserting their rights
mothers and children are given topmost
in the local governments forums.
priority. WASH (Water, Sanitation and
Hygiene) program of HP has also attained a
Moreover
considerable
coastal
entrepreneurship, technical knowhow and
municipalities at Satkhira and Bagerhat.
soft loans are being provided in pursuance of
Under this program a number of toilets were
sustainable
made and some were renovated in different
WASH program also plans to improve water
primary schools and slums in 2012.
supply, sanitation and hygiene facilities to
progress
in
two
for
WASH
promoting
methodology.
WASH
HP’s
about fifty thousand people during its
To create awareness on healthy habits and
five-year tenure.
24
ASA University Bangladesh (ASAUB)
An abode of academic excellence
Alongside an impressive success in poverty
alleviation using sustainable microfinance
program at home and abroad, ASA took
initiative to establish a university where
quality higher education would be rendered
to meet the demand of the present era. The
specific objective was to provide students of
the poor and low income families an
opportunity for educating themselves beside
the students of affluent class under a unique
teaching-learning process.
In
25
fulfillment
of
this
program in May 2007.
It provides access to higher education that
enables students to develop knowledge and
skills
for
productivity
professional
efficiency,
improvement
of
their
organizations they work for, and quality
leadership and service to their communities.
The University at present is accommodated
in an area of 1,12,500 sq feet covering 9
floors of a 15 storied building in ASA Tower,
vision
and
at Shymoly. It has purchased 2.5 acres of
commitment, ASA University Bangladesh
land for its permanent campus adjacent to
(ASAUB) was founded on October 23, 2006
the northern part of Uttara-a suburb of
with subsequent launching of its academic
Dhaka city.
The University has been putting lot of efforts
BSS and MSS in Journalism and Mass
to build an institution capable of responding
Communication under the Faculty of Arts
to the everchanging economic and academic
and Social Science.
challenges that are being confronted today in
ASAUB has already signed a Memorandum
the corporate world. This has been initiated
of Understanding (MoU) with AIT, Thailand,
by offering skill development courses in an
and
endeavor to prepare graduates for the
University, Japan to introduce e-money
competitive job market. The University's
technology. It plans to have a collaborative
growth over the last couple of years has been
research with the UK and Dutch Universities
augmented by constant visionary leadership
in the field of natural resources management
and efforts to improve the learning practices
and alleviation of poverty. ASAUB is also
through advanced technology.
working with the British Council to develop
Currently ASAUB admits students at three
English skills for ASAUB students.
LSI
Research
Center
of
Kyushu
different sessions in a year providing
opportunities to join a suitable program at
The missionary zeal of the university for its
their convenience. The University has 100
educational
full-time faculty members and 4200 students
University to receive two international
in the following programs under four
awards for its contribution towards quality
faculties:
research and education. The awards are:
•
Faculty of Business Administration
ESQR Award and World Commitment
- BBA, MBA (Regular & Executive)
Award from Italy and France respectively.
Faculty of Science & Engineering
ASAUB offers a wide range of co-curricular
- M.PH, B.Pharm
activities and events under the auspices of
Faculty of Arts and Social Science
Central Club. It also organizes workshops,
- BA (Hons) in English, MA in English
seminars, debating competitions, dramas,
(1yr & 2 yrs), BSS in Applied Sociology
and musical soirees.
•
•
•
program
has
enabled
the
Faculty of Law
The university is committed to improving
- LLB (Hons), LLM (1yr & 2yrs),
ASAUB has recently added courses in
the teaching learning process so as to
Bachelor of Pharmacy, BSS in Applied
effectively address the challenges that
Sociology and Masters in Public Health. It
confront our education system and respond
has planned to expand the Faculty of
to the changing need of students that are
Science and Engineering by addition of B.Sc
different from those of earlier generations. It
in Electrical & Electronics Engineering, B.Sc
specially emphasizes exploring how best to
in
serve the growing contingent of talented,
Electrical
Engineering
&
and
Telecommunication
Computer
Science
hard working people who want to excel
Engineering. Other addition of new courses
themselves
and
build
a
tradition
include MDS & MSS in Applied Sociology,
excellence for tomorrow’s leaders.
of
26
Impact Assessment Report 2013 of ASA Microfinance
ASA has set a trend of periodic impact assessment of its program in every 2 to 4 years since
1999 to identify the problems at stake, assess the work strategy adopted for achieving objectives
and analyse impacts of initiatives in fulfillment of its vision. In 2013, as a continuation of its
assessment process the impact study was conducted 4 years after the last assessment. Findings
of the study are presented below.
Objective: The main purpose of the assessment is to ascertain the major impact of ASA microfinance services on the life and mode of livelihood of borrowers.
Methodology: In order to reflect countrywide impact with regional specificity, 28 out of 64
districts of the country were selected following 'Random Sampling Technique' taking 4 districts
from each of the 7 Divisions. The same random sampling technique was applied while selecting
4 branches from each district making a survey area comprising 112 branches. The sampling
technique was also adhered to while selecting individual respondent borrowers. Generally 4
Loan Officers (LOs) on the average work in each branch, while each LO deals with 18 groups
and each group comprises 20-35 borrowers. In the sample 4 LOs of each chosen branch, 4
groups of each LO and 4 borrowers of each group were selected. This makes the sample comprising 28×4×4×4×4 or 7168 borrowers. During selection, borrowers having ASA attachment
for at least 3 consecutive years were included in the sample.
Assessment Parameters: Selected members were interviewed to determine the status achieved
under the following 3 categories of parameters:
A. Economic Parameters
• Business Capital
• Monthly Income
• Family Asset
• Employment Opportunity
B. Health and Behavioral Parameters
• Quality of Food Intake
• Pure Drinking Water
• Medical Treatment
• Sanitation Arrangement
• Dwelling Condition
• Cleanliness
• Dress
increased
not-increased
C. Educational Parameter
• Literacy and Child Education.
1. Has your business capital increased?
97%
3%
In all 6937 (97%) out of the total 7168 respondents
informed that their business capital increased as a
result of ASA borrowing (figure 1). But it did not
increase in the case of 231 (3%) respondents.
27
Figure 1: Impact on Business Capital
2. Have you been able to increase your monthly income through Income Generating Activities
(IGAs)?
The findings of the assessment showed that 6936 (97%) out of 7168 clients (figure 2) could
increase their monthly income as a result of investing borrowed money from ASA in various
income generating activities.
Income increased
not-increased
3%
97%
Figure 2: Increase of Monthly Income through ASA Supported IGAs
3. Has your family asset increased?
In reply 5980 (83%) out of the 7168 respondents reported that their asset increased, while 1188
(17%) respondents informed that they could not increase their asset (figure 3).
83%
17%
increased
not-increased
Figure 3: Status of Asset
28
4. Have you been able to create employment opportunities for anyone else by taking loans?
Employment either on part-time or full-time basis contributes to enhance income and generates
an enabling environment for productive forces which in turn promotes for overall development. The survey result revealed that 6727 (94%) out of 7168 respondents were able to create
employment opportunities for others in their current projects (figure 4).
increased
94%
not-increased
6%
Figure 4: Creation of Employment
5. Has the quality of food intake of your family increased?
In response 6962 (97%) respondents out of 7168 (figure 5) claimed that the quality of their food
intake improved significantly in the families. Such improvement was made due to increase of
income through proper use of loans in Income Generating Activities (IGAs).
increased
97%
not-increased
3%
Figure 5: Quality of Food Intake
29
6. Do you drink pure and arsenic free water?
The survey result showed that the percentage of drinking arsenic free water by the members
increased. It was found that 7111 (99%) were using arsenic free water (figure 6).
Used
Not used
1%
99%
Figure 6: Use of Arsenic Free Pure Drinking Water
7. To whom do you go for medical treatment to cure ailments?
The assessment study showed that the percentage in respect of calling the doctor increased
significantly. Treatment cases in 2008 and 2012 as reported by the respondents showed a positive trend (figure 7).
8000
7000
6000
Cases of Treatment
5000
2008
2012
4000
3000
2000
1000
0
Doctor
Kabiraj
Fakir
Figure 7: Year-wise Cases of Treatment
30
8. Do you have sanitary latrine in your house?
According to the survey report, users of water sealed latrine (Sanitary and pit pucca) among the
clients increased at a significant rate. In response 6772 (94%) out of 7168 respondents informed
that they were using hygienic latrine (figure 8).
Used
94%
Not used
6%
Figure 8: Use of Sanitary Latrine
9. Has the condition of your dwelling house improved?
It was found that 5978 (83%) out of 7168 respondents were able to repair or build their houses.
The rest 1190 (17%) could not make any progress in this respect (figure 9).
83%
17%
yes
no
Figure 9: Status of Building/Repairing Dwelling House
31
10. Are you aware of cleanliness of your family members?
According to the findings of the study, consciousness in respect of cleanliness increased during
the reported period. A total of 6972 (97%) out of 7168 respondents claimed that the sense of
cleanliness among the family members rose (figure 10). This was due to rise of their family
income and enhanced awareness. The rest 196 (3%) of the respondents said that they could not
make progress in developing the sense of cleanliness in their families because of their poor
affordability and low awareness.
Increased
Not increased
97%
3%
Figure 10: Status of Cleanliness
11. Do you use the same number of clothes as you did before?
As many as 1032 (14%) respondents out of the total 7168 were using the same number of
clothes as they used before. The remaining 6136 (86%) respondents informed that their number
of clothes increased (figure 11). The findings of the survey showed that the respondents made
progress in respect of their dress.
14%
86%
Figure 11: Use of Clothes
32
12. Has your family's literacy rate increased?
It was revealed in the assessment study that literacy played an important fundamental role in
providing impetus for improving the overall socio-economic status in respect of arsenic free
pure drinking water, basic sanitation, and cleanliness and also in managing the income generating activities of the ASA clients.
According to survey statistics, 6717 (94%) out of the total 7168 clients agreed that the rate of
literacy increased among the members of their family (figure 12):
Increased
Not increased
94%
6%
Figure 12: Rate of literacy
The respondents mentioned the following reasons behind improvement in the literacy status
(figure 13):
a.
Attained family solvency through increased income acted as a motivating factor: 4750 (71%);
b. Motivated by consciousness after joining the microfinance program: 4736 (71%);
c.
Schools being within a stone’s throw: 3305 (49%);
d. Available opportunities for study without fees: 2912 (43%);
e.
Others: The head of the family and other relatives encouraged to send children for education: 48 (0.7%).
Send children for education
Opportunity for free study
Schools located nearby
Enhanced consciousness
Family solvency
0
500 1000 1500 2000 2500 3000 3500 4000 4500 5000
Figure 13: Reasons for Increased Literacy
33
Conclusion: Findings of Impact Assessment Report 2013 revealed that major objectives of introducing ASA microfinance program have been fulfilled to a greater extent during the period
under review. Majority of borrowers improved their socio-economic condition and thereby
improved their standard of living. In most of the cases they used borrowed money in income
generating activities that resulted in enhancement of their monthly income and family asset
creating a state of family solvency. This additional income and solvency facilitated them to
improve in educational status, and dwelling condition as well as supported their excellent progress in basic health treatment, use of pure drinking water, sanitation, cleanliness and dress.
Despite remarkable success in the microfinance program, the study identified few limited challenges such as illness, natural calamities, using fund in unproductive sector, inadequacy of
borrowed fund and lack of awareness, experience and skill that slowed down the pace of
achievement. These challenges other than unavoidable natural ones can be addressed through
intensive monitoring and imparting training to members using weekly meetings as platforms
for enhanced awareness on social issues, capacity building and group dynamics.
The overall findings amply justify the continuation of ASA microfinance program with added
flexibility in credit ceiling in response to client demand.
34
Publications
Research and Documentation Unit of ASA is mandated for various publications on the
activities and their impacts on regular basis. The Unit publishes a good number of documents
each year. The publications are newsletters, annual reports, booklets, newspaper
supplements, brochures, findings on research and studies etc. Moreover, articles on ASA and
its programs by the foreign students and researchers during their internship are also
published from this Unit.
35
ASA Coverage
NEPAL
Bangladesh
ASA
Panchagarh
(Up to June 2013)
ASA
ASA
Nilphamari
Thakurgaon
ASA
Lalmonirhat
ASA
Kurigram
ASA
ASA
Rangpur
Dinajpur
INDIA
INDIA
ASA
Gaibandha
ASA
ASA
Joypurhat
Sherpur
ASA
Naogaon
ASA
ASA
Netrokona
Bogra
ASA
Sunamganj
ASA
Jamalpur
ASA
Sylhet
ASA
C.Nawabganj
ASA
Mymensingh
ASA
ASA
Rajshahi
ASA
ASA
ASA
Kishoreganj
ASA
Sirajganj
Natore
Tangail
ASA
Moulavibazar
Habiganj
ASA
Gazipur
ASA
Pabna
ASA
ASA
Narshingdi
Brahmanbaria
ASA
ASA
Kushtia
Dhaka
ASA
Manikganj
ASA
Meherpur
Rajbari
ASA
Chuadanga
ASA
Jhenaidah
INDIA
ASA
Narayanganj
ASA
ASA
Munshiganj
ASA
Faridpur
ASA
Magura
ASA
ASA
ASA
ASA
ASA
Narail
Jessore
ASA
Madaripur
ASA
Comilla
Shariatpur
Chandpur
ASA
Khagrachhari
Gopalganj
ASA
Lakshmipur
ASA
ASA
Noakhali
ASA
Feni
Barisal
ASA
Rangamati
ASA
ASA
Pirojpur
Jhalakati
ASA
ASA
INDIA
ASA
ASA
Satkhira
Khulna
ASA
Chittagong
Bhola
Patuakhali
ASA
ASA
Barguna
Bagerhat
ASA
Bandarban
BAY OF BENGAL
ASA
Cox's Bazar
Districts
Thanas
Branches
64
511
2,942
MYANMAR
36
Plan for 2013-2014
ASA has planned to achieve the following
targets during 2013-2014
37
1
Operating Branches
2
Groups
3
Active members (in million)
4
Savings (Taka in billion)
5
Active borrowers (in million)
6
Loan disbursement (Taka in million)
2,920
229,137
4.75 M
27.78
4.40 M
105,800 M
Advisor
: Md. Shafiqual Haque Choudhury
Editor
: M Abdul Aziz
Script & Coordination
: Habibur Rahman
Design
: Habibur Rahman & Md. Shahidul Islam
Data & Financial Analysis : Mohammed Azim Hossain
Published by
: ASA
Printed by
: Quality Printing & Packaging
ASA
ASA Tower
23/3 Bir Uttam A.N.M Nuruzzaman Sarak,
Shyamoli, Mohammadpur,
Dhaka-1207, Bangladesh
Phone: 8119828, 8155083
Fax: 880-2-9121861
www.asa.org.bd
E-mail: asa@asabd.org