Accountability & transparency in the NGO sector of Bangladesh

Non-Governmental Organisations (NGOs) have played a transformative role in Bangladesh, contributing significantly to socio-economic development, poverty alleviation, education, healthcare, and disaster management. With more than 2,000 registered NGOs, the sector serves as a critical bridge between the government and the marginalised communities, often filling gaps in public services.
However, the rapid expansion of this sector has also exposed vulnerabilities concerning accountability and transparency. These challenges have raised questions about NGOs' effectiveness, integrity, and long-term sustainability in their mission to drive social change.
The NGO sector in Bangladesh emerged in response to critical needs following independence in 1971 and the devastating famine of 1974. Over the decades, NGOs have become key players in fostering development, with many receiving substantial international funding. Yet, this growth has not been accompanied by a robust framework to ensure accountability and transparency. While NGOs are legally required to register and report their activities to regulatory bodies such as the NGO Affairs Bureau, enforcing these requirements remains inconsistent.
The diverse nature of the NGOs, which range from grassroots organisations to large international entities, compounds oversight challenges. The disparity in organisational capacity, funding sources, and operational priorities often results in varying degrees of compliance or noncompliance of regulatory and ethical standards. Smaller NGOs, in particular, struggle to maintain detailed records and reports due to limited resources, while the larger ones may face accusations of mismanagement or corruption despite their institutionalised systems.
The influx of foreign aid and grants has been a double-edged sword for the NGO sector in Bangladesh. On the one hand, it has enabled large-scale projects in addressing poverty, health, and education. On the other, it has created opportunities for financial mismanagement and lack of transparency. When beneficiaries claim limited or no access to promised services, questions regarding utilising funds arise.
For many NGOs, donor dependence leads to an excessive focus on securing funding rather than delivering measurable outcomes. In some cases, this fosters a competitive environment where organisations inflate their achievements in reports to appease donors. This practice misrepresents the impact of development programmes and undermines public trust in the sector. Moreover, discrepancies between reported expenditures and ground-level realities have fueled scepticism about the integrity of NGO operations.
Accountability within NGOs begins with internal governance, but significant gaps often exist in this area. Weak internal controls, a lack of standardised operational procedures, and inadequate monitoring mechanisms can lead to inefficiencies and malpractices. The absence of a clear distinction between the roles of board members and management further complicates governance issues.
In some cases, NGOs have been criticised for lacking democratic decision-making processes. Leaders with significant influence may dominate the organisation's operations, sidelining voices from within. This lack of inclusivity can hinder innovative problem-solving and exacerbate inequities within the organisation itself.
The government of Bangladesh has implemented several measures to regulate NGO activities, including the Foreign Donations (Voluntary Activities) Regulation Act, which governs foreign funding and requires NGOs to submit detailed financial and programmatic reports. Despite such measures, enforcement remains uneven, with some organisations bypassing regulatory requirements altogether.
Political interference further complicates the regulatory environment. NGOs critical of government policies or associated with opposition parties often face heightened scrutiny, while others perceived as aligned with the government may receive leniency. Such biases undermine the credibility of oversight mechanisms and perpetuate a culture of selective accountability.
For an NGO to succeed, it must earn the trust of its communities. Yet, instances of fraud, embezzlement, and misuse of funds have tarnished the sector's image in Bangladesh. High-profile scandals involving prominent NGOs have amplified public scepticism, overshadowing the invaluable contributions of many smaller, community-driven organisations.
Moreover, the lack of accessible information about NGO activities perpetuates the trust deficit. Many organisations do not publish detailed reports on their projects, budgets, or impacts, leaving stakeholders-including beneficiaries and donors-without a clear understanding of their operations. This opacity creates fertile ground for misinformation and unfounded accusations, further eroding confidence in the sector.
International donors play a crucial role in shaping NGOs' accountability and transparency standards. Many donor agencies require comprehensive reporting and audits, which incentivise NGOs to maintain high financial and operational integrity standards. However, the dependence on donor-driven accountability can result in misplaced priorities, as NGOs may focus on meeting donor expectations rather than addressing local needs.
This dynamic also causes disadvantages to smaller NGOs. They often struggle to compete for funding without the resources to comply with complex donor requirements. This creates a cycle where larger organisations dominate the sector, potentially sidelining grassroots initiatives that may be more attuned to local realities.
A multifaceted approach is necessary to build a more accountable and transparent NGO sector. Strengthening internal governance requires precise financial management, decision-making, and reporting guidelines. Regular capacity-building programmes can help smaller organisations enhance operational efficiency and compliance with regulatory standards.
Regulators must also adopt a balanced approach, ensuring that oversight mechanisms are applied consistently across the sector. Streamlined registration and reporting processes can reduce bureaucratic bottlenecks, making it easier for NGOs to adhere to legal requirements. At the same time, civil society and the media must play a proactive role in promoting transparency by holding organisations accountable through investigative reporting and public advocacy.
Technology can serve as a powerful tool in this endeavour. Digital platforms for tracking projects, budgets, and impacts can enhance transparency, while publicly accessible databases of registered NGOs and their activities can help build trust. By embracing innovative solutions, the sector can address long-standing issues and demonstrate its commitment to accountability.
The NGO sector in Bangladesh stands at a critical juncture. Its contributions to social development are undeniable, yet its potential remains constrained by recurring challenges in accountability and transparency. NGOs can rebuild trust by fostering a culture of integrity, inclusivity, and innovation and ensure that their efforts yield sustainable, transformative outcomes for their communities.
As Bangladesh continues to navigate the complexities of development, the role of NGOs will continue to grow significantly. Ensuring accountability and transparency issues is not just a matter of ethical responsibility; it is imperative for achieving the sector's overarching mission of empowering the nation's most vulnerable communities.

Dr Matiur Rahman is a researcher and development worker.
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