of the General
Body. The extra meetings were necessary to fulfill the requirments
of the newly introduced Micro Regulatory Authority (MRA) conditions.
I think all members of the General Body for their cooperation,
support and active participation in these meetings in providing
policy decisions and guidance.
This annual report presents the status of the details of activities
done during the year 2010 along with the growth trends. I congratulate
those who had done the hard work of preparing the report. I do
believe than 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 in future.
A. K. Fazlul Bari
NOTE FROM THE EXECUTIVE DIRECTOR
IDF completed 17 years in 2010. IDF has been able to implement
the policies and programs as per methodologies set in 2009 and
started recovering the shocks due to global financial crisis and
high food prices. Hard work of IDF staff members played very important
role in recovering from crisis in 2010. The branch to branch visit
of higher management and orientation of grassroots staff to understand
causes of crisis and their solutions and salary increase were
Based on the review of cost of living and salaries and benefits
of the staff by the Board, IDF increased the salaries of the staff
in July 2008 and July 2010 which helped to reduce delinquency
and improve the quality of portfolio during this period.
The overall growth in 2010 was satisfactory. The total increase
in membership, loan portfolio and members' savings in 2010 were
repectively 3,442 (4.4% increase on 2009), Tk. 104.9 million (23.2%
increase on 2009) and Tk. 33.29 million (15.5% increase on 2009).
The repayment rate increased from 99.16% in 2009 to 99.54% in
2010. The growth of membership was low in 2010 as the consolidation
in the organization was still going on. The portfolio quality,
savings accumulation and repayment rate improved in 2010.
The improvement in 2010 was possible
becase of hard work of IDF staff members and sincere cooperation
from our development partners and local social leaders of our
working areas particularly in Chittagong Hill Tracts. We are very
grateful to Grameen Trust, Sida, Helen Keller International, PKSF,
Grameen Foundation USA, Deutsche Bank, CowBank (Australia), BWTP
(South Asian Microfinance Forum), Basic Bank, Sonali Bank, BRAC
Bank, One Bank, Mercantile Bank, Government of Bangladesh, IDCOL,
CHT Regional Council, NGO Affairs Bureau, NGO Foundation, CHT
District Councils, Deputy Commissioners, Upazila Nirbahi Officers
and law Enforcing Bodies for their supports and cooperation.
We are also grateful to our Board
Members for their active support in implementing various programs
in 2010. I cordially thank our founder and life members for their
active and positive role and guiding us to take appropriate policies
and measures in 2010
Continuous support of our
friends, partners and well wishers would gear up our strength
to fight poverty.
Executive Director, IDF
Microcredit Summit Champaign's Goal
• 175 million of the world’s 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 world’s poorest families move from
below US$ 1.00 a day adjusted for purchasing power parity
(PPP) to above US$ 1.00 a day adjusted for PPP, by the end of 2015.
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 at 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 through micro-finance program in a small para
(sub-village) of Shoalok Union of Bandarban Hill District in 1993
with a seed capital of US$7,500.00(loan) from Grameen Trust. As it
was found very useful, the Demand of IDF’s small loans grew
very fast in the area, which was not possible to meet with small seed
capital received from Grameen Trust. For meeting this demand, IDF
approached various donors for support as advised by Prof. Muhammad
Yunus. Swedish International Development Co-operation Agency (Sida)
responded immediately and supported IDF for experiment and expansion
of Grameen Microfinance Model in the whole of Chittagong Hill Tracts
in the framework of a long-term (8 years) sustainable plan. IDF implemented
the project successfully, which subsequently attracted other donors
and partners including Bangladesh Government, PKSF, ILO, Helen Keller
International (HKI), UNICEF, CARE Bangladesh, AusAID, IDCOL, Grameen
Foundation USA, Deutsche Bank, CowBank (Australia), Basic Bank, Sonali
Bank, Bangladesh Krishi Bank, Bank Asia Ltd., Prime Bank Ltd., One
Bank and others.
Create poverty free Bangladesh.
Combating poverty in the impassable hilly regions and other un-served
areas of Bangladesh for creating 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
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
members of IDF. The Governing Body is responsible for the guidance
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 who heads both General and Governing
Body. The Executive Director works as Member-Secretary of both
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, Noakhali, Chandpur, Comilla
and Feni, Rajshahi, Chapai Nawabganj, Naoga and Natore.
A brief description of the major operational areas is presented below.
Chittagong Hill Tracts
The 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.
Chittagong 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 hilly 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.
Dhaka District is geographically located almost at the centre of the
country surrounded by Narayanganj in the east, Gazipur in the north,
Munshiganj and Faridpur in the south and Manikganj District in the
west. The total area of this district is 1463.60 Sq. Km. (565.10 Sq.
miles) of which 45.92 Sq. Km is riverine.
Dhaka District or Dhaka Zilla is the oldest district of the country.
There are different views about the origin of the zilla name. There
are various opinions about the naming of the Dhaka Zilla or Dhaka
District. One opinion was that the name Dhaka was derived from the
word Dhakka (meaning watch station) which was required to be set to
the water-ways near the present city of Dhaka. Dhaka district consists
of several Thanas under Dhaka municipal area as well as five (5) upazillas.
Dhaka City has seven (7) principal thanas and fourteen (14) auxiliary
thanas under its jurisdiction.
Comilla is a city
in south-eastern Bangladesh, located along the Dhaka-Chittagong
Highway. Comilla is located at 23°27 N, 91°12 E, and has
a total area of 280 square kilometers. It is bounded by Burchiganj
and Tripura on the north, Laksham and Chauddagram on the south,
and Barura on the west. The major rivers that pass through Comilla
include Gumti and Little Feni.
Chandpur is a district in east-central Bangladesh. It is located at
the mouth of the Meghna river. It is a part of the Chittagong Division.
The town of Chandpur is terminus of a metre gauge branch of Bangladesh
Chandpur district has a total area of 1704.06 square kilometers. It
is bounded by Munshiganj District and Comilla District on the north,
Noakhali District, Lakshmipur District and Barisal District on the
south, Comilla District on the east, and Meghna river, Shariatpur
District and Munshiganj District on the west.
Chandpur is the confluence of two of the mightiest rivers of Bangladesh..
the Padma river (the main branch of the river Ganges) and the Meghna
river, which meet near Chandpur Town. Important tributaries of the
Meghna river flowing through Chandpur are Dakatia river, Dhanagoda
river, Matlab river and Udhamdi river.
Noakhali is a district in south-eastern Bangladesh. Noakhali
District is located in the Chittagong Division of Bangladesh. It has
a land area of 3600.99 km², and is bounded by the Comilla district
in the north, the Meghna estuary and the Bay of Bengal in the south,
Feni and Chittagong districts in the east, Lakshmipur and the Bhola
districts in the west.
The Main problem of the Water Sector in Noakhali area is the acute
drainage problem since mid seventies. This is due to the reclaimed
land with very mild slope. Flat terrain hinders the drainage. Situation
becomes complicated by the haphazard road construction by LGED, R&H
department and also encroachment of natural creeks and khals by people.
The only drainage route i.e. Noakhali khal has no longer been a sufficient
means for draining out huge catchment rainfall runoff. That is why
the entire Noakhali District has now been suffering from drainage
Noakhali district, whose earlier name was Bhulua, was established
in 1821. It consists of 9 upazillas, 5 municipalities, 45 wards, 90
mahallas, 83 union parishads, 909 mouzas and 978 villages.
The organizational structure of IDF can be arranged as General
Body, Board of Governors, Executive Director and various departments.
The programmes are implemented through head office, coordination office,
area office and branch offices. The branch offices work directly with
the poor people in their respective areas; organize them with a view
to building a receiving mechanism among the poor and implementing
various socio-economic programs for them. The offices above the branch
supervise, monitor and provide guidance to the branch offices.