Upload
sabah-sheesh-ahmed
View
245
Download
0
Embed Size (px)
Citation preview
8/4/2019 Presentation Brac
1/31
1
BRAC sexperience in business, in partnerships&
future opportunities and prospects
NGO & PRIVATE SECTOR PARTNERSHIP
Muhammad A. (Rumee) AliManaging Director, Brac Enterprises &
Chairman, Brac Bank Limited
8/4/2019 Presentation Brac
2/31
2
Fazle Hasan Abed
Founder and Chairperson
Fazle Hasan Abed
Founder and Chairperson
We always thought nationally, workedlocally and looked for inspirationglobally. We were inspired by PaolaFreires work on pedagogy of the
oppressed.It is wonderful to have athinker who was thinking about thepoor people and how they canbecome actors in history and not just
passive recipients of other peoplesaid. He made us realize that poorpeople are human beings and can dothings for themselves, and its our dutyto empower them so that they can
analyze their own situation, see howexploitation works in society, and seewhat they need to escape exploitativeprocesses March, 2005
8/4/2019 Presentation Brac
3/31
3
BRAC in Bangladesh
Core Programmes of BRAC Economic Development Programme Health Programme Education Programme Social Development Human Rights & Legal Services Programme
BRACs Social Enterprises Social Businesss that grew out its development interventions Bracs investments in commercial businesses with social underpinning
Support Programmes of BRAC Training Division
Research & Evaluation Division Advocacy & Human Rights Unit Human Resources Division Public Affairs & Communications Administration & Special Projects Finance & Accounts Monitoring
Internal Audit Publications
It takes a real flash of insight to attack a large-scale problem when you have verylittle money to spend. That, however, is the position in which many socialentrepreneurs find themselves. One solution is to unleash and redirect the creativeenergies of people within the communitiesbeing served. David Bronstein, How tochange the world,2004.
8/4/2019 Presentation Brac
4/31
4
Microfinance: Cumulativedisbursement (mil) USD 4,943.04
Outstanding (in ml) USD 597.54
Repayment Rate 99.54%Average Loan Size USD 201.56
Service Charge on Loan 12.50%
Total Borrowers (in million)/Branches 6.53/ 3,000
BRAC: Economic Development Program
No. of Primary Schools 37,500
No. of Students 1.15 ml
No. of Graduates 3.80 ml
Cost Per Child Per Year US $18
Community Libraries 1,664
Adolescent Development Centres 8,660
BRAC Education Program
Population Covered 88.5 ml
Health Volunteer 70,000
Eligible Couple Served 10.05 ml
BRAC Health Centres (Shushastho) 30
Patients Received Treatment 100,000
Pregnant Women received Anti Natal Care 1.46 ml
Total Latrine Installes 0.63 ml
BRAC Health Program
Targeting Ultra Poor;which has overall covered 111,322
persons with disbursement ofUS$ 6.6M in Asset Transfer andUS$ 7.7M in loans
We also have Social Development,
Human Rights & Legal Services
Other Programs include
BRAC in Bangladesh
8/4/2019 Presentation Brac
5/31
5
Coverage, Staff Information, and Job Creation
Villages 69,421Population Covered 110 Million
Job Creation
Staff 57,119BEP Teachers 53,379
Total 110,498
Industry Jobs Created
Poultry 1,921,141
Livestock 612,628
Agriculture 1,078,245
Social Forestry 84,437
Fisheries 287,758Horticulture 211,563
Sericulture 27,297
Handicraft Products 65,000
Small Enterprises 532,488
Small Traders 3,680,042
Total 8,500,599
All the data presented here are of March 2008
BRAC in Bangladesh
8/4/2019 Presentation Brac
6/31
BRAC International
BRAC in Africa: Tanzania
Uganda Southern Sudan
Liberia & Sierra Leone ( from 2008)
BRAC in Asia: Afganistan Sri Lanka
Pakistan
Total Staff 5,354
Members of Village Organization 342,116
Loan Disbursement(in Million USD)
124.43
BRAC USA & BRAC UKto mobilize resources, raise awarenessand cultivate partnerships for BRAC International.
The only international southern NGO
8/4/2019 Presentation Brac
7/31
7
Bracs experience in Partnerships withthe Private Sector.
In the Development Programs:
Healthcare:Partnerships with: Pharmaceutical Co/Private Clinics/Toiletries co./Foundry:
for distribution of over the counter drugs/condoms through ShasthoShebikas (SS) . SS are Brac trained health volunteers who work in villagesto raise awareness in five most prevalent diseases , on prevention and earlydetection. SS act as distribution network and create access for villagers toOTC drugs/condoms/birth control pills.
SS also make primary referals to enlisted private clinics, where villagers getcare on discounted prices.
Health and Sanitation program which works to raise awareness on use ofsoap and latrines in rural areas has arrangements with ToileteriesCo/Foundarys to supply soap and latrines at affordable price.
In the Development Programs:
Human Rights:Partnership with: Panel of Lawyers:
A panel of 450 lawyers have been enlisted under this program and for a lump sum fee theyconduct cases of Human Rights violations that are reported, prepared and facilitated byBracs field workers.
Bracs program exists in 61 districts of Bangladesh and is thelargest legal aid programin the world in terms of size and coverage
8/4/2019 Presentation Brac
8/31
8
Bracs experience in Partnerships withthe Private Sector.
In the Development Programs:
Agriculture Development: Partnership with:
Private Sectors Banks (PSB):
BRAC has stepped in to assist PSBs to disburse agro-loans through its MicrofinanceProgram. PSBs have signed agreement with BRAC to finance BRACs agro-loans.
Skill-gap and limitations of distribution network has made this partnership possible.There is a level of regulatory persuasion too. Social Mobilization & Advocacy: Partnership with:
Private Sector TV/Radio/Print Media:
BRAC has arrangements with these corporation to disseminate public awarenessmaterial in the form video documentaries and publications. The media offers these to
be published/aired at cutrates. Social Enterprises:
Renewable Energy/Partnership with: Alternate Energy Co:
MOU signed between BRAC and Emergence Bio-Energy Inc (USA) to pilot a newtechnplogy of producing Bio-gas and a manure as a by product. On succesful
completion of pilot. The company jointly owned by the parties will embark oncommercial production. This will makeenergy available to rural areas at a cheaperprice than traditional fuels.
Private Contract Farms: Private farms have been contracted in Agriculture to grow seeds/vegetable, in
Livestock to rear chicken. BRAC guarantees off-take of the produce at current
market price. It also provides technical assistance in modern agro and broiler rearingmethods.
8/4/2019 Presentation Brac
9/31
9
Bracs experience in Partnerships with
the Private Sector. Brac Investments:
Partnership with Investment Co & Strategic Partners
Brac Bank Limited/Brac Afganistan Bank both were resulted fromBRACs initiative to create Access to Finance for Small & MediumEnterprises in these two countries. BBL was set up in 2001 andBAB in 2005 by a consortium of Brac, IFC, Shorecap.
BBL has became a publicly listed company with 50% sharespublicly held in 2007. The charter of the Bank is to have minimumof 51% of the lending portfolio in Small & Medium Enterprises.
BracNet, an internet service provider, is a joint venture(60/40) withan international consortium of private investors. Purpose was to
eventually use the communications network for BRACs Health,Education, Advocacy and Microfinance programs.
8/4/2019 Presentation Brac
10/31
10
Bracs experience in Partnerships with the
Private Sector.
Nature Sustainability
A commercial arrangement Sustainable
Address a skill gap Non -Sustainable longerterm
Contribution linked to strategic
objectives of the company
Non -Sustainable
Address a regulatory requirement Non - Sustainable
Corporate Philanthropy Non -Sustainable
There is limited sustainability for most of the partnerships
Nature and sustainability of the present partnerships
8/4/2019 Presentation Brac
11/31
11
BRAC can suggest a solution from itsown experience inbusiness..
BRAC Enterprises Enterprises
Program Support Enterprises
BRAC Investments BRAC Bank Ltd.
bracNet
Documenta Ltd. Delta BRAC Housing Finance Corp. Ltd.
BRAC Afganistan Bank
Why is Brac in business?
8/4/2019 Presentation Brac
12/31
12
BRAC Enterprises:
BRAC started investing in enterprises so as to ensure sustainability of itsinterventions and through linkages; evolve job creation opportunities andover time become donor independent. This venture includes the followingenterprises:
Agro & Salt Industries
Salt Feed Artificial Insemination (AI) Cold Storage Vegetable Export Poultry Broiler Rearing &
ProcessingRetailing
AarongDairy & Food Project
PrintersPrint PackTeaProgram Support Enterprises
Seed Production &Processing
Tissue Culture Fisheries Nursery Solar Energy & Bio-gas
41.5Total Equity
70.0Total Asset
Dec. 2007
(Million US$)
Balance SheetItems
7.7Net Profit
25.0Gross Profit
85.7Sales
2007(Million US$)
IncomeStatement Items
Financial Information
8/4/2019 Presentation Brac
13/31
13
1988:FISH & PRAWN HATCHERY:
To ensure distribution of environmentally safe fish spawn and prawnPL to the rural people to create income generating activities.
1996: POULTRY FARMS/FEED MILLS/BROILER PROCESSINGGrew out of one of the core interventions of BRAC employment andincome generating activities. This was to increase the availability ofquality chicks at a competitive price and provide supports to thepoultry extension programme. The need of feed for high yield variety(HYV) birds and the expansion of poultry industry in Bangladesh byusing mainly locally available ingredients led to setting up of thesemills. The linkage to market for farmers involved in rearing poultryled to the broiler processing plant.
INTERVENTIONS TO CREATE LIVELIHOOD IN LIVESTOCK &FISHERIESSECTORS BY EXTENDING MICRO FINANCE LEADING
TO ENTERPRISE DEVELOPMENT THROUGH LINKAGES
8/4/2019 Presentation Brac
14/31
14
1998: DAIRY & FOOD:BRAC designed a particular model for cattle developmentcomprising of technical training, vaccination, fodder cultivation, AIand credit facilities to the rural poor. As a result of these activitiesmilk production has increase substantially in the BRAC operational
areas. The Project was set up to create a supply chain to providefair price to the farmers.
1999: BULL STATIONS:
Artificial Insemination (AI) program was begun to improve the qualityof the livestock sector in Bangladesh. It is an important strategicindustry for BRAC since it is expected that improvements in thecattle population in Bangladesh will lead to greater yields in raw milk.
INTERVENTIONS TO CREATE LIVELIHOOD IN LIVESTOCK &FISHERIESSECTORS BY EXTENDING MICRO FINANCE LEADINGTO ENTERPRISE DEVELOPMENT THROUGH LINKAGES
8/4/2019 Presentation Brac
15/31
15
1995/6: SEED PRODUCTION/ PROCESSING/ TISSUE CULTURE/NURSERY:
In order to meet the increasing demand for good quality and highyielding seed and seedlings for poor and marginal farmers toincrease agro-productivity and increase farm earnings led BRAC to
initiate this program. BRAC also provides training to farmers inmodern methods to successfully adapt to High yielding varieties ofseed.
2003: BRAC TEA:
Started in 2003 with four tea estates in Chittagong. Aim to set up model teaestates with the objective of improving the lives of Tea Estate workers.Introduce Teak, Rubber, Bamboo Shoots, Agar plantation.
INTERVENTIONS TO SUPPORT AGRICULTURE EXTENSIONANDGENERATE HIGHER EARNINGS FOR FARMERS LEADING TOENTERPRISE DEVELOPMENT.
8/4/2019 Presentation Brac
16/31
16
JOB CREATION INTERVENTIONS WITH LINKAGES TO SKILLDEVELOPMENTLEADING TO ENTERPRISE DEVELOPMENT THROUGH
LINKAGES
1978: AARONG : Supports and ensures the livelihoods of more than60,000 rural artisans, mainly women. Protector and promoter of
Bangladeshi handicrafts and craft producers. Trains and supportsartisans through well rounded member support program. Thisincludes access to health and sanitation, education for the childrenthrough Bracs schools, microfinance and also Aarongs welfareprograms.
INTERVENTION TO SUPPORT HEALTH PROGRAM
2001: BRAC SALT came about to fulfill the need to give people accessto a cheap source of iodized salt in Bangladesh. This intervention wasinstrumental in tackling iodine deficiency diseases.
8/4/2019 Presentation Brac
17/31
17
Raison d'tre of BRAC Enterprises
To enable BRAC to attain its vision and mission statements by
Sustaining the development interventions
Creating job opportunity and thereby contributing to povertyalleviation
Generating surplus for BRAC
The investments (companies/land/shares) are a hedge forfuture market volatility..
Essential to ensure continuity and sustainability of BRACs interventionsto improve the lives of the people who are the most vulnerable in thecommunity.
8/4/2019 Presentation Brac
18/31
18
Donors Contribution in Annual ExpenditureBangladesh Operations consolidating
sustainability
YearAmount
(million US$)
Donor Contribution
(Percentage)1980 0.78 100
1985 2.30 97
1990 21.25 68.20
1995 63.73 54
2000 152.0 21
2005 259.0 24
2006 330.0 30
2007 485.0 20
8/4/2019 Presentation Brac
19/31
19
BRACs annual budget is more than USD 450 million, but BRAC hassuccessfully reduced donor funding as was directed by the Govt. of
Bangladesh
Presently (2007), 80% of this budget is financed by BRAC itself
BRAC Enterprises, the profit wing of BRAC, is a partner of this success
8/4/2019 Presentation Brac
20/31
20
BRAC Enterprises runs somewhere between profit
seeking organization and nonprofit social organizationwith the vision of serving the society in a profitablemanner.
The concept of double bottom line in BRAC, is drivenby the second bottom line, that is, social objective and
this takes precedence over the first; profit
BRAC: pioneer of social business model
8/4/2019 Presentation Brac
21/31
21
COMMERCIAL B USINESS SOCIAL BUSINESS
EXPLOTATIVEIDEALISTIC
WHERE IS THE RIGHT BALANCE?
SUSTAINABLE
BRAC has pioneered a social business modelwhich defines Corporate Social Responsibility
r
BUSINESS MOTIVE SPECTRUM&SUSTAINABILITY
THE CHALLENGE..HOW TO ACHIEVE THERIGHT BALANCE?
8/4/2019 Presentation Brac
22/31
22
Our effort at BRAC Enterprises is not driven towards
maximizing profit for the shareholdersbut we work to
benefit our stakeholders.
Our main stakeholders are not, as in the commercial
firms, the owners/ shareholders but the millions of
deprived and disenfranchised poor of the country.
8/4/2019 Presentation Brac
23/31
An interesting dialogue
*CCIC website on PS/NGO partnership..We would like to dance with the voluntary sector -James Gallon, President,
Canadian Institute for Business & Environment
NGOs have values and these values can bring income and resources that will keep the ethical work going. You haveskills and expertise that the private sector wants.
But, if we agree to dance, who leads?"There is a danger in such marriages that NGOs will lose their idealism and their ability to be creative in terms of afuture world. . If they ever lose what is their own ideology or what they are working for then they will be gobbled up bythe business ethic - - Dr. Bill Ryan, Director, Jesuit Project on Ethics in Politics
Will I respect myself in the morning?"Is there a danger of getting involved with the private sector and then being discarded once a firm's internationalmarketing efforts are in place; ultimately business would set the terms?
- Dr. Bill Ryan, Member of the CCIC Taskforce on Building Public Support for Sustainable Human Development
* Seminar held by Canadian Council for International Co-operation (CCIC) in Ottawa,Canada to discuss opportunities for collaboration between NGOs and PrivateSector in May, 1996.
23
8/4/2019 Presentation Brac
24/31
24
Private Sector/NGO partnership.What stands in the way?
A commercial organization primarily looks for profit or shareholdervaluewhereas a NGO focuses on altruistic outcome.
Markets determine success of a commercial enterprise purely onfinancial parameterswith compliance issues as an add-on
Corporations do not feel any responsibility for solving worldsproblems
Corporations are control-orienteddo not want to risk giving upcontrol
Lack of trust.Confrontationalpostures?
A meaningful engagement can happen only when the society andmarkets puts a premium on non financial parameters that make anorganization socially responsible
8/4/2019 Presentation Brac
25/31
25
How does Bracs businesses provide aplatform for PS/NGO Partnership.
Brac Bank an act as models for future partnerships in: Retailing : Aarong Dairy Products Agro business Poultry and Livestock Alternative Energy: Bio gas & Solar Energy
Structure of the Partnership:
Use the Strategic Partner/Investment co. Model as in Brac Bank Franchise Model for a retail business like Aarong Outsourcing upstream or downstream production chain
Any partnership which a Private Sector Corporation enters into with an NGO;whether for financial, expertise, raise profile, supply of goods reasons; or forleveraging to gain additional financing; can assist an NGO engaged indevelopment using the BRAC model by making them more efficient therebygenerating a greater surplus from their social enterprises to fund the programswhich are essentially non-earning in nature
8/4/2019 Presentation Brac
26/31
How do we overcome the concerns and
issues raised in the CCIC dialogue..
Conflicting objectives
Dominant partner?
Sustainability?
Trust?
8/4/2019 Presentation Brac
27/31
Can these issues be resolved?
BRAC has been able to resolve these issues by:
Finding common grounds and shared objectives for partnership
Dominant partner issue is resolved through: Clearly defined expectations
Roles
Accountabilities
Policies
Sustainability is ensured by making the enterprises commercially viablewithout moving away from the core objectives of BRAC
Trust is a function of transparency, accountability and reputation of the
partnering institutions. acknowledgement of possible constraints
mechanisms for communication
shared risk-taking
8/4/2019 Presentation Brac
28/31
What do we actually put in place to ensure these
issues are resolved Know your intended partner
Agree what objective we are trying to achieve?
Identify what competencies, expertise or physical resources each can offer.
What role in terms of accountability each of the partners are going to play
Agree the risk sharing parameters
Agree to a information sharing and communications mechanism
Agree a structure e.g Board, Advisory Committee or Governing Body to manage thepartnership
THE ABOVE STEPS WILL RESULT IN A BINDING AGREEMENT..AND TRUST!!
8/4/2019 Presentation Brac
29/31
29
This model will have:
Sustainabilitysince it will be run on sustainable basis as
Bracs businesses are.Social ObjectiveIt will not deviate from the core objectives
since is ingrained in the organizational DNA and be a one offounding charters
CSROrganizations that are focused on CSR can considerthis as their contribution which will be on a sustainable basissince this is not charity.
How does Bracs businesses provide aplatform for PS/NGO Partnership.
However, ultimate sustainability (to reiterate) can onlybe assured when it can get a consensus onmeasurable parameters of social responsibility and
the markets start attaching a premium to this activity.
8/4/2019 Presentation Brac
30/31
SHALL WE DANCE?
BRAC has presented a scenario or shall we say a dance floor
what a possible partner can offer and some new steps.WHO SHALL LEAD?
If a level trust can be created by ensuring transparency andaccountability in the engagement, this should not remain an
issueWILL I RESPECT MYSELF IN THE MORNING?
If we are committed towards working for a common andaccepted shared value and can make sure that we do notdeviate.the morning after should only bring pleasant thoughts.
REMEMBER: IT TAKES TWO TO TANGO
ARE WE READY TO RIDE THE WIND?.....THE WIND OF CHANGE?
30
8/4/2019 Presentation Brac
31/31
31
Never doub t that a small group of thoughtful,c ommitted people c an change the world. Indeed, it is
the only thing that ever has.
Margaret Mead
THANK YOU !