BRAC, a development organization formerly known as the Bangladesh Rehabilitation Assistance Committee, has adapted two strategies traditionally used in its microcredit initiatives to promote the organization’s efforts to address issues involving clean water and sanitation in Bangladesh through its Water, Sanitation and Hygiene (WASH) programme. The first strategy involves establishing village organizations called Village WASH Committees, each of which consists of six women and five men who establish goals to improve sanitation in the village. The committees hold meetings twice per month to assess progress and to address challenges. As with the organization’s microcredit work, the WASH programe is intended to instill notions of community ownership of issues affecting poor communities. According to Dr Babar Kabir, senior director for BRAC, village organizations have helped promote BRAC’s microcredit initiatives, not only as a means to encourage recollection of loans, but also to “play a crucial role in controlling for risky loans and over-indebtedness.”
The second strategy that has been adapted from microcredit to the WASH program is providing training and technical resources to entrepreneurs to encourage them to provide goods at an affordable price to poor communities. During 2011, BRAC held 4,620 training sessions for entrepreneurs who manufacture and sell components that improve latrine sanitation, reportedly resulting in approximately 84,600 latrine improvements over the course of the year.
As of 2013, the WASH programme operates in 248 sub-regions in Bangladesh, covering approximately 51.2 million people. As of year-end 2012, BRAC reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 790 million, a gross loan portfolio of USD 754 million, 4.2 million borrowers and 5.84 million depositors with USD 313 million in total deposits. BRAC has not reported return on assets (ROA) or return on equity (ROE) for 2012, but reported ROA of 2.78 percent and ROE of 9.30 percent in 2011.
By Brian LeBlanc, Research Associate
About Bangladesh Rural Advancement Committee (BRAC) Established in 1972 as the Bangladesh Rehabilitation Assistance Committee, BRAC is a development organization based in Bangladesh. According to its website, “BRAC works with people whose lives are dominated by extreme poverty, illiteracy, disease and handicaps. With multifaceted development interventions, BRAC strives to bring about change in the quality of life of poor people in Bangladesh.” BRAC’s initiatives include microfinance, advocacy campaigns, food security, community development, water and sanitation disaster relief, social enterprises, and human rights. As of year-end 2012, BRAC reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 790 million, a gross loan portfolio of USD 754 million, 4.2 million borrowers and 5.84 million depositors with USD 313 million in total deposits. BRAC has not reported return on assets (ROA) or return on equity (ROE) for 2012, but reported ROA of 2.78 percent and ROE of 9.30 percent in 2011.
Sources and Additional Information:
NextBillion article, “Innovation Forward and Backward: BRAC adapts its microcredit model to water, sanitation and hygiene,” http://www.nextbillion.net/blogpost.aspx?blogid=3194
MicroCapital story, March 26, 2012, “MICROCAPITAL BRIEF: Bangladesh-based BRAC to Expand Microfinance, Heal, Education, Agricultural Projects in Tanzania,” https://www.microcapital.org/microcapital-brief-bangladesh-based-brac-to-expand-microfinance-health-education-agricultural-projects-in-tanzania/
MicroCapital story, September 1, 2011, “MICROCAPITAL BRIEF: BRAC Development Institute Releases ‘Bangladesh Microfinance Review,’ Indicates Need for Product Diversity,” https://www.microcapital.org/microcapital-brief-brac-development-institute-releases-%E2%80%9Cbangladesh-microfinance-review%E2%80%9D-indicates-need-for-product-diversity/
MicroCapital story, April 26, 2011, “MICROCAPITAL BRIEF: Bangladeshi Microfinance Organization BRAC Admits to Pushing Loans to Over Indebted Borrowers,” https://www.microcapital.org/microcapital-brief-bangladeshi-microfinance-organization-brac-admits-to-pushing-loans-to-over-indebted-borrowers/
MicroCapital Universe Profile: Bangladesh Rural Advancement Committee (BRAC) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BRAC
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