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Experience Sharing of Integrated Development Foundation (IDF), Bangladesh in Reduction of Unemployment and Poverty

Microfinance institutions have a strong belief that their grass-root level financial inclusion program has bestowed the fight against global challenges such as poverty, unemployment, and environmental degradation. It was all possible because of the focus on the social and economic security of their members.

On the 24th of October 2021, the Centre for Self-help Development (CSD) put forwarded its 16th episode of the webinar entitled "Pathways to Fighting Poverty and Unemployment: An Experience of Integrated Development Foundation (IDF), Bangladesh". Mr. Zahirul Alam, the Founder and Executive Director of IDF was featured as a keynote speaker and Mr. Shankar Man Shrestha, Chairman of CSD chaired the program.

Speaking in the webinar Mr. Zahirul Alam, shared that "IDF is deliberately working to alleviate poverty, unemployment and reducing carbon emissions by operating microfinance programs in Chittagong, Bangladesh. He flashed back on how they started off by introducing a microfinance program in the 1990s with the help of a rural trust to make Chittagong poverty and carbon-free. They started to lend money and taught members on how to utilize the money. Afterward they instigated on saving of the hard earned money by the members. Advancing with the time they gradually upgraded their programs by emphasizing credit plus programs such as social services, health education, and renewable energy. The main agenda of formulating a microfinance program was to rectify the huge gap between the rich and the poor with the solvency of social problems such as discrimination, inequality, prejudice, stigma being the highest priority. Before the microfinance program came into action, there were various problems such as improper nutrition and sanitation. Even when the people were infected with minor diseases they had to pay a hefty price that would take away their life or would make them financially weak. The intended nutrition and sanitation plan through microfinance was a boon to the remote areas of Bangladesh. In the same manner, they extended their services in education as well as agriculture also. Farmers were adapting to the traditional working modules, they started emphasizing high value products and also increasing production, working with new technology along with providing training to the farmers. At present, the overall condition of the people has developed drastically due to the increase in income, self-sufficiency, education, and health prospects. The farmers are also yielding more due to the adaptation to advanced methods of agriculture.

Mr. Alam also reminisced that "Most of the IDF microfinance members have now become successful medium entrepreneurs; they are helping the IDF in increasing production, marketing and supplying in the high value chain of the agricultural sector. As a result, the farmers have doubled their profits in terms of production and earning." He urged every policymaker, promoter, and practitioner presented in the webinar to focus on the welfare of the members and shift their attention on how they can lend their hand in raising the living standards of the poor rather than making a profit from the financial transactions made by the poor members. He suggested that those who are in a position with the regulatory body for policy clarity must use the tool of microfinance services in poverty alleviation, job creation, and environment protection.

In the closing remarks the Chair of the webinar, Mr. Shankar Man Shrestha shared his words of wisdom that one should learn from Bangladesh on how to make MFIs in Nepal member friendly. He also said, "Although the microfinance sector in Nepal was initially successful compared to Bangladesh, it has not been able to work as expected in terms of poverty alleviation and job creation due to the recent profit-focused activities. We need to focus on savings and loans, not just focus on profits, but also on credit plus programs that raise the living standards of the members". You have to earn, but shouldn't solely be focused on making a huge profit. We can sustain only if we work adhering to the feelings and needs of the members. So for that, we need to think new, do new, and move forward in a new way. We shouldn't repeat the mistakes, if a mistake is repeated it is not a mistake, it is a choice.

Mr. Shrestha conveyed his most humble thanks to the keynote speaker of the webinar Mr. Zahirul Alam. He further expressed that Nepal's MFIs should replicate the integrity of IDF, Bangladesh in order to tackle the problem of unemployment and poverty.

About 150 dignitaries from Bangladesh, Sri Lanka, Philippines, India, Nepal, and other countries participated in the webinar.

 

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