Role of NGOs in job creation
Wednesday, 14 November 2007
Md. Aourongjeb
Employment rate of a country is considered as one of the vital tools to measure its overall growth. If the rate is not satisfactory, it may be said that the country is lagging behind the current race and immediate initiatives must be in place to cure this disease. Unemployment problems create huge, almost unavoidable, problems for the country in the long run and ultimately the nation suffers for years. Bangladesh has also been suffering from the curse of unemployment for many years. Many skilled and unskilled people remain unemployed for years and get involved in various anti-social activities.
The United Nations has quoted the Labour Force Survey in the following way, "The 1999-2000 Labour Force Survey estimates that of the 74.2 million working age population (15 - 64 years), about 21.6 percent are employed for wages and salaries, a two percent increase since the 1995-96 LFS. However, while 33.9 percent of men work for wages, only 8.4 percent of women receive some form of remuneration. There are an estimated 7.4 million working children out of which 3.2 million children are child labourers. Twenty four percent of the working population is self-employed. Unemployment rates in Bangladesh, estimated at 4.3 percent, are comparatively low due to pervasive under-employment and the large number of people remaining out of the labour force. Unemployment rates are high among the youth, especially among young men under the age of 30."
According to the pocket book (2005) of the Bangladesh Bureau of Statistics (BBS) the employment field of Bangladesh is as follows.
Government has been trying its best to mitigate this problem through creating different job opportunities for its citizens but the field is very narrow and there is no continuity in the process at all. Bangladesh Civil Service (BCS) exam, along with others organized by the government, are not held regularly for which lots of meritorious candidates wait for years and finally become frustrated after crossing the eligible age for government job. At present huge eligible students are waiting, for years, for the 28th BCS of the Public Service Commission (PSC) but they don't know the approximate date which is very unfortunate. It is always told by different quarters that there are huge vacancies in different sectors of the government but we, the general people, don't see these opportunities. Here different organizations are also playing a vital role to employ the people without which the situation would be the worst. It would be very difficult to discuss contribution of all the sectors separately and with due respect to others. Hereunder contribution of the NGO/MFIs sectors in this respect are given.
Different NGO/MFIs had been established in the country, especially after independence, to implement various development programs to reshape the country. Many people have also been employed in these organizations. "Credit and Development Forum" (CDF annual report-2005) shows that a number of 690 NGO/MFIs (local & national) have created opportunity to employ 118,575 people throughout the country. If there are four members in each of these families, then it may be said that altogether 118,575 × 4 = 474,300 persons are directly related with this employment. A considerable number of women also work in this sector, which is playing a vital role in women empowerment.
Here the five big NGOs are playing a special role. BRAC and ASA have employed more people than others as they have countrywide coverage. BRAC directs different development programs throughout the country and that's why the number of its employees are also more than others.
In the case of recruitment system, very often, it is seen that the recruitment procedure is very lengthy in some of the NGOs. Job seekers have to look for the job advertisements regularly in the daily newspapers. They have to go through more than one newspaper regularly which is not at all easy for everybody. Besides, those who live in villages don't get this opportunity easily. It is also seen that sometimes the job advertisements are published in such newspapers as have no market at all. Some of the organizations' recruitment procedures are also very complicated. After applying with exam fees, candidate have to wait for long for the written card and sometimes, due to delay in delivery by the postal department, they get it when the examination is already over.
Concerning recruitment ASA's strategy is to some extent different than others. ASA has introduced this policy for betterment of the candidates as well as the institutions. At the end of 2006, there were 2931 branches in ASA and on an average there are four Loan Officers (LO) in a Branch Office. So it may be said there are almost 11,724 LOs in the institutions. ASA follows its innovative methodology to recruit this major part of the employees. These are:
l Any eligible person can apply throughout the year. That's, there is no bindings of applying especially after advertisement is published in the newspapers. Advertisements are published sometimes to inform the people about the system.
l Candidates are directed to submit their application in the nearest branch office. Here they are not asked to submit any bank draft, documents, etc.
l Candidates sit for the exam in the district office. Very often groups are formed with the number 15-20 and a topic is then provided for individual speech as well as for group discussion. From the process the senior officials select the suitable parsons finally.
l Total recruitment procedure is completed in the district office and later on the selection list is sent to the central office.
l The selected officials are provided with hands on training for 10-30 days and then start the field level activities directly.
Here, applicants feel easy and remain free in this procedure, because a large number of participants sit together in front of one or two interviewers only. They also don't have to pay much money as they don't have to come in the capital city but in their respective home districts. They are asked to face the interview gradually according to the vacancy of the respective district. With this system, a large number of staff can be recruited within a short time by two interviewers. About 200 applicants can be interviewed within 5-6 hours. It is also better for the job seekers if the recruitment process is short and easy.
The big five NGOs/MFIs are also playing a vital role indirectly through providing loans and other opportunities to the borrower members. A major part of these borrowers invest their loan into different income generating activities in which other people are employed in the production areas. These clients invest their loam money in different projects and many unemployed persons have been employed in these sectors.
Borrower members of the big 5 NGO/MFI (up to December 2005), source: CDF
(Grameen Bank is also playing a vital role in this sector. Figure of this organization is not mentioned here as it is recognized as a specialized bank in CDF report.) Here it may also be mentioned that a number of staff of a few NGOs/MFIs are also working in different countries of the world. They are working there to replicate their respective models in those countries. Their number is increasing as Bangladesh microfinance model is gradually gaining global acceptance and demand.
The writer is assistant director, ASA
Employment rate of a country is considered as one of the vital tools to measure its overall growth. If the rate is not satisfactory, it may be said that the country is lagging behind the current race and immediate initiatives must be in place to cure this disease. Unemployment problems create huge, almost unavoidable, problems for the country in the long run and ultimately the nation suffers for years. Bangladesh has also been suffering from the curse of unemployment for many years. Many skilled and unskilled people remain unemployed for years and get involved in various anti-social activities.
The United Nations has quoted the Labour Force Survey in the following way, "The 1999-2000 Labour Force Survey estimates that of the 74.2 million working age population (15 - 64 years), about 21.6 percent are employed for wages and salaries, a two percent increase since the 1995-96 LFS. However, while 33.9 percent of men work for wages, only 8.4 percent of women receive some form of remuneration. There are an estimated 7.4 million working children out of which 3.2 million children are child labourers. Twenty four percent of the working population is self-employed. Unemployment rates in Bangladesh, estimated at 4.3 percent, are comparatively low due to pervasive under-employment and the large number of people remaining out of the labour force. Unemployment rates are high among the youth, especially among young men under the age of 30."
According to the pocket book (2005) of the Bangladesh Bureau of Statistics (BBS) the employment field of Bangladesh is as follows.
Government has been trying its best to mitigate this problem through creating different job opportunities for its citizens but the field is very narrow and there is no continuity in the process at all. Bangladesh Civil Service (BCS) exam, along with others organized by the government, are not held regularly for which lots of meritorious candidates wait for years and finally become frustrated after crossing the eligible age for government job. At present huge eligible students are waiting, for years, for the 28th BCS of the Public Service Commission (PSC) but they don't know the approximate date which is very unfortunate. It is always told by different quarters that there are huge vacancies in different sectors of the government but we, the general people, don't see these opportunities. Here different organizations are also playing a vital role to employ the people without which the situation would be the worst. It would be very difficult to discuss contribution of all the sectors separately and with due respect to others. Hereunder contribution of the NGO/MFIs sectors in this respect are given.
Different NGO/MFIs had been established in the country, especially after independence, to implement various development programs to reshape the country. Many people have also been employed in these organizations. "Credit and Development Forum" (CDF annual report-2005) shows that a number of 690 NGO/MFIs (local & national) have created opportunity to employ 118,575 people throughout the country. If there are four members in each of these families, then it may be said that altogether 118,575 × 4 = 474,300 persons are directly related with this employment. A considerable number of women also work in this sector, which is playing a vital role in women empowerment.
Here the five big NGOs are playing a special role. BRAC and ASA have employed more people than others as they have countrywide coverage. BRAC directs different development programs throughout the country and that's why the number of its employees are also more than others.
In the case of recruitment system, very often, it is seen that the recruitment procedure is very lengthy in some of the NGOs. Job seekers have to look for the job advertisements regularly in the daily newspapers. They have to go through more than one newspaper regularly which is not at all easy for everybody. Besides, those who live in villages don't get this opportunity easily. It is also seen that sometimes the job advertisements are published in such newspapers as have no market at all. Some of the organizations' recruitment procedures are also very complicated. After applying with exam fees, candidate have to wait for long for the written card and sometimes, due to delay in delivery by the postal department, they get it when the examination is already over.
Concerning recruitment ASA's strategy is to some extent different than others. ASA has introduced this policy for betterment of the candidates as well as the institutions. At the end of 2006, there were 2931 branches in ASA and on an average there are four Loan Officers (LO) in a Branch Office. So it may be said there are almost 11,724 LOs in the institutions. ASA follows its innovative methodology to recruit this major part of the employees. These are:
l Any eligible person can apply throughout the year. That's, there is no bindings of applying especially after advertisement is published in the newspapers. Advertisements are published sometimes to inform the people about the system.
l Candidates are directed to submit their application in the nearest branch office. Here they are not asked to submit any bank draft, documents, etc.
l Candidates sit for the exam in the district office. Very often groups are formed with the number 15-20 and a topic is then provided for individual speech as well as for group discussion. From the process the senior officials select the suitable parsons finally.
l Total recruitment procedure is completed in the district office and later on the selection list is sent to the central office.
l The selected officials are provided with hands on training for 10-30 days and then start the field level activities directly.
Here, applicants feel easy and remain free in this procedure, because a large number of participants sit together in front of one or two interviewers only. They also don't have to pay much money as they don't have to come in the capital city but in their respective home districts. They are asked to face the interview gradually according to the vacancy of the respective district. With this system, a large number of staff can be recruited within a short time by two interviewers. About 200 applicants can be interviewed within 5-6 hours. It is also better for the job seekers if the recruitment process is short and easy.
The big five NGOs/MFIs are also playing a vital role indirectly through providing loans and other opportunities to the borrower members. A major part of these borrowers invest their loan into different income generating activities in which other people are employed in the production areas. These clients invest their loam money in different projects and many unemployed persons have been employed in these sectors.
Borrower members of the big 5 NGO/MFI (up to December 2005), source: CDF
(Grameen Bank is also playing a vital role in this sector. Figure of this organization is not mentioned here as it is recognized as a specialized bank in CDF report.) Here it may also be mentioned that a number of staff of a few NGOs/MFIs are also working in different countries of the world. They are working there to replicate their respective models in those countries. Their number is increasing as Bangladesh microfinance model is gradually gaining global acceptance and demand.
The writer is assistant director, ASA