performance of the dedicated staff, supports of all donors, assistance
by executive & general bodies and cooperation of the well wishers
of IDF have significantly contributed towards this achievement.
It is heartening to note that the present status of the details of these
activities with the growth trends in the past years have been reflected
in the IDF Annual Report 2007. I congratulate those who had done the
hard work of preparing the report. I do believe that the readers will
get an insight of IDF activities through this report. However, any suggestions
from the readers will enable us to enrich the quality of the report
A. K. Fazlul Bari
poverty in the Impassable Hilly Region and other un-served areas of
Bangladesh in order to create a poverty free Bangladesh.
NOTE FROM THE EXECUTIVE DIRECTOR
IDF completed 14 years in 2007. The experience of 2007 is mixed. It
is our pride that US based Forbes magazine rated IDF in 2007 as one
of the top 50 MFIs of the world and 6th in Bangladesh. In 2007, CIDA
enriched the list of IDF Development partners to work with birth and
marriage registration in CHT-a new dimension for IDF. NGO Foundation
joined us to improve the water and sanitation condition of the poor
people of CHT.
However, 2007 was not pleasant year for Bangladesh in General and microfinance
sector in particular. The natural calamities, rat floods, price-hike
and eviction brought more people under poverty in 2007.
IDF faced added problem as it works in remote, difficult, hilly and
poor areas. IDF experienced severe problem in two upazilas of CHT region
in 2007 due to poor law and order situation there. Despite this adverse
situation, IDF maintained a steady sustainable growth in 2007. The total
increase in membership. Loan portfolio and members savings in 2007 were
respectively 5,412 (8.62% increase on 2006), Tk.85.44 million (26.09%
increase on 2006) and Tk.27.67 million (16.84% increase on 2006). The
repayment rate dropped slightly from 99.98% to 99.92% in 2007 because
of problems mentioned above.
The steady sustainable growth as well as recognition by internationally
reputed Forbes magazine was possible because of commitment and hard
work of all IDF staff members and sincere cooperation of our development
partners and local social leaders of our working areas. We are very
grateful to Grameen Trust, Sida, Helen Keller International, PKSF, GF
USA, CowBank (Australia), Basic Bank, Sonali Bank, BRAC Bank, Government
of Bangladesh, IDCOL, CHT Regional Council, NGO Affairs Bureau, CHT
District Councils, Deputy Commissioners, Upazila Nirbahi Officers and
low Enforcing Bodies for their supports and cooperation.
We are also grateful to our Board Members for their active support in
implementing various programs. We cordially thanks our founder and life
members for their active and positive role in policy making.
We hope continuous support from our friends, partners and well wishers
to our endeavors of fighting against poverty.
Executive Director, IDF
Microcredit Summit Champaign's Goal
175 million of the worlds poorest families, especially the women of
those families, are receiving credit for self-employment
and other financial and business services by the end of 2015; and
• 100 million of the Worlds poorest families move from below US$
1.00 a day adjusted for purchasing power purity (PPP)
to above US$ 1.00 a day adjusted from PPP, by the end of 2015.
Development Foundation (IDF) is a non-profit, non-political and a non-government
organization established in December 1992 by Mr. Zahirul Alam, a former
ILO staff member; and founder member-secretary of the Rural Economics
Program of the Department of Economics in the University of Chittagong
from where Grameen Bank Microfinance Model was developed by Nobel Laureate
Prof. Professor Muhammad Yunus in the 1970s.
IDF started its journey with micro-finance program in Chittagong Hill
Tracts (CHT) in a small para (sub-village) of Shoalok mouza of Bandarban
Hill District in 1993 with a seed capital loan of US$ 7,500.00 from
Grameen Trust. The people found IDF’s micro loans very useful
within one year. Thus the seed capital received from Grameen Trust was
very small to meet the growing demand of micro-loans of the area. As
a result, IDF approached various donors for support to meet this demand
as advised by Prof. Muhammad Yunus. Swedish International Development
Co-operation Agency (Sida) responded immediately and supported IDF for
the experiment and expansion of Grameen Bank Model in the whole of the
CHTs area in the framework of a long-term (8 years) sustainable plan.
IDF implemented the project successfully, which subsequently attracted
other donors and partners including various ministries of the Government,
PKSF, ILO, Helen Keller International (HKI), UNICEF, CARE, AusAID, IDCOL,
Grameen Foundation USA, Deutsche Bank, CowBank (Australia), Basic Bank,
Sonali Bank and Bangladesh Krishi Bank and others.
To make Bangladesh poverty free.
Combating poverty in the impassable hilly regions and other un-served
areas of Bangladesh in order to create a poverty free Bangladesh.
The main objective of IDF is to assist the poor, the landless, the destitute
women and children, small farmers and disabled persons in order to enable
them to gain access to resources and undertake various income-generating
and other activities for poverty alleviation and to enhance their quality
of life in terms of health, nutrition, sanitation, education, safe water,
housing and the environment through building effective institutions
of their own, which they can understand and operate and can find socio-economic
strength in it through mutual support.
The supreme authority of IDF is General Body. It is composed
of 18 members from different professions. A Governing Body consisting
of 7 members is elected from amongst the General Body of the Foundation.
The General Body is the highest policy and decision making body of IDF.
The Governing Body is responsible for the formulation of plan and budget
for the programs and projects to be implemented by the organization.
The Governing Body evaluates and monitors the implementation of policies,
programmes and projects through various monitoring tools and visits
to the project areas. A Chairman elected by the General Body heads both
General and Governing Body.
The Executive Director works as Member-Secretary of both the Bodies.The
Executive Director is the Chief Executive of the Foundation and responsible
for the smooth implementation of all activities of the Foundation. He
implements the activities through the appointed professionals and support
staff of the Foundation.
THE OPERATIONAL AREA
The present operational area of IDF is Chittagong Hill Tracts,
Chittagong, Cox’s Bazar, Dhaka and Rajshahi. A brief description
of the operational area is presented below.
Chittagong Hill Tracts
Chittagong Hill Tracts (CHT) is a beautiful and strange piece of land
with rocks, hills, lakes and sea. These are very difficult and remote
areas, inhabited by about thirteen very poor tribes with different languages
and cultures. The area is wedged between the Bay of Bengal and the hills
of Mizoram of India.
The CHT is a 13,295 sq. km. region of hills consisting of Bandarban,
Rangamati and Khagrachari districts located in the south-east of Bangladesh.
As per the preliminary result of the Population Census 2001, the total
population of CHT is 1.325 million; of which 52 percent are tribal people.
Historically, Chittagong Hill Tracts enjoyed the status of a self-governing
territory and administered by Hill King which continued until the British
East India Company annexed Bengal in 1787. The Chakma Raja (King) then
signed an agreement after a long armed conflict, under which Chakma
territory became a British tributary on the payment of 20 tons of cotton.
This was later extended to other parts of CHT. In 1860, the British
formally annexed CHT and upgraded its status to a full-fledged district.
The people of Chittagong Hill Tracts are very poor and they live mainly
on Jhum cultivation and bamboo and wood collection from forests, which
are major causes of deforestation and soil erosion in the area. Most
people of this area live in absolute poverty. Despite of all the efforts
of the government, the people of the Chittagong Hill Tracts still lack
access to various services such as credit, agricultural inputs and extension
services, medical facilities, sanitation and safe drinking water. This
is mainly because of i) scattered population, ii) poor communication
system, iii) remoteness of the area and iv) political problem. The language
barrier further aggravates the situation.
The sentiment of the people of CHT was hurt when the construction of
666 meters long and 43 meters high hydroelectric dam at Kaptai started
in 1957. The immediate impact of dam was the submergence of a vast area
of natural forests and 54,000 acres of arable land (40% of total cultivable
lands in CHT) of the area. It also made about 1,800 families homeless.
The displaced people were not properly rehabilitated. As a result, their
settlement and construction of new houses in the inaccessible regions
led to rampant deforestation. It is also said that some families crossed
the border and migrated.
Adverse economic impacts created by Kaptai Dam on displaced people gradually
resulted in armed insurgency in CHT. The counter-insurgency measures
by the then Pakistan Government through military action worsened the
situation. The increased military presence in CHT and search for insurgents
created unsettled situation among CHT inhabitants. It was a very tense
situation when IDF started its micro-finance program in CHT in 1993.
district is quite different from other districts in its unique natural
beauty characterized by hills, rivers, sea, forests, and valleys. The
greater Chittagong district was established in 1666 including the present
Chittagong, Cox’s Bazar and the three hill districts. The district
of Chittagong Hill Tracts was established in 1,860 with the hill regions
of the district. Later, Chittagong district was further divided into
Chittagong and Cox’s Bazar districts. The district consists of
one City Corporation, 7 municipalities, 20 upazilas, 197 union parishads
and 1,319 villages.
The area of Cox’s Bazar district is 2,491.86 sq. km. It is bounded
by Chittagong district on the north, Bay of Bengal on the south, Bandarban
district, Arakan (Myanmar) and the Naf River on the east, and the Bay
of Bengal on the west. Cox’s Bazar thana was established in 1854.
Cox’s Bazar subdivision was formed comprising of Cox’s Bazar
Sadar, Chakoria, Maheshkhali, and Teknaf thanas. Afterwards, three new
thanas (Ukhia, Kutubdia, and Ramu) were created under this subdivision.
In 1984, the thanas were transformed into upazilas and Cox’s Bazar
subdivision was elevated to a district under the decentralization scheme.
It consists of 7 upazilas, 2 municipalities, 60 union parishads, 199
mouzas and 966 villages.
The area of Rajshahi district is 2,407 sq. km. It is bounded
by Naogaon district on the north; West Bengal of India, Kushtia district
and the Ganges on the south; Natore district on the east and the Nawabgonj
district on the west. Rajshahi district was established in 1772. It
has one City Corporation with 4 thanas, 7 municipalities, 93 wards,
297 mahallas, 9 upazilas, 70 union parishads, 1,678 mouzas and 1,858
villages. Rajshahi town stands on the bank of the river Padma. It is
both district and divisional town.
THE ORGANIZATIONAL STRUCTURE
programs and projects are implemented at a number of levels including
head office, area office, branch, centre and group. The head office
and coordination offices provide guidance, and supervise and monitor
the activities of branch offices. The branch offices work directly with
the poor people in their area, organizing them with a view to building
a receiving mechanism and implementing various socio-economic programs
for them. The institutional structure of IDF is shown in Figure-1.