Bangladesh's Economy
BRAC and the NGO Economy
How BRAC grew into one of the world's largest NGOs, running schools, health programmes, microfinance and businesses, and its graduation approach to ultra-poverty.
BRAC, founded by Fazle Hasan Abed in 1972, is one of the world’s largest NGOs.
What it does
- Schools for children who missed formal education.
- Health workers in villages.
- Microfinance.
- Social enterprises: dairy (Aarong Dairy), handicrafts (Aarong stores) and more, funding programmes.
- BRAC Bank and BRAC University.
Graduation approach
- BRAC’s Targeting the Ultra Poor programme (2002) gives the poorest households a productive asset (like cows), training, stipends and coaching.
- Randomised trials in several countries found lasting income gains, a major finding in development economics.
Scale
BRAC reaches tens of millions of people in Bangladesh and runs programmes in other countries.
NGO state
NGOs in Bangladesh delivered services where the state was weak, a distinctive feature of its development.
India
Indian organisations like Bandhan (in its early years) adapted BRAC’s graduation model.
An ultra-poor woman receives two cows, training and weekly visits from a BRAC worker. Years later, she runs a small dairy business and her family eats better.
BRAC runs services for tens of millions.
- BRAC was founded in 1972 by Fazle Hasan Abed.
- It runs schools, health, microfinance and enterprises.
- Its graduation approach showed lasting income gains.
- NGOs filled gaps where the state was weak.
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