Association for Social Advancement
Encyclopedia
The Association for Social Advancement (ASA) is a non-governmental organization
based in Bangladesh
which provides microcredit
financing. It was established in 1978 by Shafiqual Haque Choudhury and a team of people who were then working for other established NGOs but who themselves were arguing for a better, more radical way to alleviate the exploitation of rural villages caused by the 1971 Bangladesh atrocities
The founding framework of ASA was aimed at empowering rural landless villagers from the “bottom up” through “people’s organizations” . These were run by volunteers who advocated that a consciousness for solidarity amongst the village poor would lead to collective social action.
For many years, ASA sought to combine social development (in health, education, nutrition, sanitation) with credit provision, but in 1991, these were abandoned, and ASA shifted its focus solely to microcredit lending. These was because they wanted to stop “donor dependence” and become specialised and financially self sufficient. Since then it has become a fully self-sufficient microfinance institution - operating mainly in Bangladesh, but with presence in Africa and South America.
Today, ASA's official mission is to "reduce poverty and improve the quality of life of the poor through the provision of qualitative and responsive micro finance services in an innovative and sustainable way".
ASA offers a successful alternative microfinancing model to that of the Grameen Bank
. In December 2007, it placed Number 1 in Forbes Magazine’s list of the world’s top 50 microfinance institutions . Grameen Bank placed Number 16, despite having won the Nobel Peace Prize 2006 .
ASA combines low cost operations and high growth to fuel its success.
This organization makes their processes efficient with little organizational breaknecks. Each of its 3,324 branches in Bangladesh are self-sufficient units, run by 6 people - A branch manager, An Assistant Branch Manger, and 4 Loan Officers. The branch manager is given the liberty to approve all transactions within the branch, provided it meets the guidelines of a detailed operating manual. Each branch is a profit centre and is expected to fully recover costs between 9-12 months .
.
However, despite their expansion success, ASA’s impact on the Bangladeshi economy maybe be decreasing or if not, may not be as large as expected. There is anxiety that microfinance’s breakneck pace of growth may mean that the market for ASA’s core product, the small, general purpose loan, is nearing saturation. While at the industry level, overall average borrower numbers and portfolios have been rising steadily, ASA’s active borrower accounts in 2008 and 2009 fell by 32 percent. This was data was analysed as a need for ASA to diversify their products and increase their quality of service.
Furthermore, it has not faired great in the areas of long term financial empowerment of women, despite the fact that women are the main demographic to which ASA provide their services to (In 2007, 71% of services were to women) . Women who belong to ASA are reported to be among the least active within community and political life .
, Nigeria
, Indonesia
, India
, Pakistan
, Tajikistan
, Afghanistan
, Yemen
, Jordan
, Ethiopia
, Myanmar
, Peru
).
Non-governmental organization
A non-governmental organization is a legally constituted organization created by natural or legal persons that operates independently from any government. The term originated from the United Nations , and is normally used to refer to organizations that do not form part of the government and are...
based in Bangladesh
Bangladesh
Bangladesh , officially the People's Republic of Bangladesh is a sovereign state located in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south...
which provides microcredit
Microcredit
Microcredit is the extension of very small loans to those in poverty designed to spur entrepreneurship. These individuals lack collateral, steady employment and a verifiable credit history and therefore cannot meet even the most minimal qualifications to gain access to traditional credit...
financing. It was established in 1978 by Shafiqual Haque Choudhury and a team of people who were then working for other established NGOs but who themselves were arguing for a better, more radical way to alleviate the exploitation of rural villages caused by the 1971 Bangladesh atrocities
1971 Bangladesh atrocities
Beginning with the start of Operation Searchlight on 25 March 1971 and continuing throughout the Bangladesh Liberation War, there were widespread violations of human rights in East Pakistan perpetrated by the Pakistan Army, with support from local political and religious militias, especially...
The founding framework of ASA was aimed at empowering rural landless villagers from the “bottom up” through “people’s organizations” . These were run by volunteers who advocated that a consciousness for solidarity amongst the village poor would lead to collective social action.
For many years, ASA sought to combine social development (in health, education, nutrition, sanitation) with credit provision, but in 1991, these were abandoned, and ASA shifted its focus solely to microcredit lending. These was because they wanted to stop “donor dependence” and become specialised and financially self sufficient. Since then it has become a fully self-sufficient microfinance institution - operating mainly in Bangladesh, but with presence in Africa and South America.
Today, ASA's official mission is to "reduce poverty and improve the quality of life of the poor through the provision of qualitative and responsive micro finance services in an innovative and sustainable way".
ASA offers a successful alternative microfinancing model to that of the Grameen Bank
Grameen Bank
The Grameen Bank is a microfinance organization and community development bank started in Bangladesh that makes small loans to the impoverished without requiring collateral...
. In December 2007, it placed Number 1 in Forbes Magazine’s list of the world’s top 50 microfinance institutions . Grameen Bank placed Number 16, despite having won the Nobel Peace Prize 2006 .
ASA combines low cost operations and high growth to fuel its success.
Internal Organization
ADB describes ASA as the “ford motor model” of microfinance” because of its success in standardising low cost microfinance in an efficient and sustainable way . This is due to its flat organizational structure that consists of just 3 tiers - a relatively small central office in Dhaka, District Offices, and Branch Offices. The Branch Offices are their main arm through which their core loan products disimbursed. These Branches report to the district offices, who in turn report to the Head Office.This organization makes their processes efficient with little organizational breaknecks. Each of its 3,324 branches in Bangladesh are self-sufficient units, run by 6 people - A branch manager, An Assistant Branch Manger, and 4 Loan Officers. The branch manager is given the liberty to approve all transactions within the branch, provided it meets the guidelines of a detailed operating manual. Each branch is a profit centre and is expected to fully recover costs between 9-12 months .
Operating Information
Up to December 2005 ASA's Cumulative Loan Disbursement was Taka 148,197 million. Loans outstanding Taka 19,379 million among 4.18 million borrowers. At the end of 2005 ASA's Operational Self Sufficiency (OSS) is 275.24%, Financial Self-sufficiency 169.73% and rate of loan recovery 99.88%. Up to 2005 ASA operation expanded over 2,291 branches under 64 administrative areas all over in BangladeshBangladesh
Bangladesh , officially the People's Republic of Bangladesh is a sovereign state located in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south...
.
Impacts on Bangladesh
Despite its position in the world of microfinance, there are remarkably few studies attempting to quantify ASA’s impacts, and this may be because having become self-sufficient, it does not need to demonstrate its impact for the benefit of donors. A 2008 study conducted by ASA’s Research and Documentation Cell showed that its Credit and Savings Program increased, among other outcomes, business capital, education, employment and sanitation . In 2011, ASA, together with Grameen Bank and BRAC, accounted for 62 per cent of Bangladesh’s 18.5 million micro-borrowers and 69 per cent of the sector's gross loan portfolio .However, despite their expansion success, ASA’s impact on the Bangladeshi economy maybe be decreasing or if not, may not be as large as expected. There is anxiety that microfinance’s breakneck pace of growth may mean that the market for ASA’s core product, the small, general purpose loan, is nearing saturation. While at the industry level, overall average borrower numbers and portfolios have been rising steadily, ASA’s active borrower accounts in 2008 and 2009 fell by 32 percent. This was data was analysed as a need for ASA to diversify their products and increase their quality of service.
Furthermore, it has not faired great in the areas of long term financial empowerment of women, despite the fact that women are the main demographic to which ASA provide their services to (In 2007, 71% of services were to women) . Women who belong to ASA are reported to be among the least active within community and political life .
Future plans
ASA is currently involved in advising various organizations in setting up micro-credit facilities in several countries worldwide (e.g. PhilippinesPhilippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
, Nigeria
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
, Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, Pakistan
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
, Tajikistan
Tajikistan
Tajikistan , officially the Republic of Tajikistan , is a mountainous landlocked country in Central Asia. Afghanistan borders it to the south, Uzbekistan to the west, Kyrgyzstan to the north, and China to the east....
, Afghanistan
Afghanistan
Afghanistan , officially the Islamic Republic of Afghanistan, is a landlocked country located in the centre of Asia, forming South Asia, Central Asia and the Middle East. With a population of about 29 million, it has an area of , making it the 42nd most populous and 41st largest nation in the world...
, Yemen
Yemen
The Republic of Yemen , commonly known as Yemen , is a country located in the Middle East, occupying the southwestern to southern end of the Arabian Peninsula. It is bordered by Saudi Arabia to the north, the Red Sea to the west, and Oman to the east....
, Jordan
Jordan
Jordan , officially the Hashemite Kingdom of Jordan , Al-Mamlaka al-Urduniyya al-Hashemiyya) is a kingdom on the East Bank of the River Jordan. The country borders Saudi Arabia to the east and south-east, Iraq to the north-east, Syria to the north and the West Bank and Israel to the west, sharing...
, Ethiopia
Ethiopia
Ethiopia , officially known as the Federal Democratic Republic of Ethiopia, is a country located in the Horn of Africa. It is the second-most populous nation in Africa, with over 82 million inhabitants, and the tenth-largest by area, occupying 1,100,000 km2...
, Myanmar
Myanmar
Burma , officially the Republic of the Union of Myanmar , is a country in Southeast Asia. Burma is bordered by China on the northeast, Laos on the east, Thailand on the southeast, Bangladesh on the west, India on the northwest, the Bay of Bengal to the southwest, and the Andaman Sea on the south....
, Peru
Peru
Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
).