PPRC NewsletterIssue 2 January 2015 Message from Chairman

ThePPRCinternshavedoneasplendidjobinhelpingtolaunchthePPRCNewsletter.Theleadarticleinthissecondinstalmentisonthehighlytopicalissueofgovernance.Thearticledrawsonthefirstoftheplannedannualreportseriesonthestateofgovernancethatwaslaunchedinearly2014.AsecondarticlelooksatinnovativeuseofZakatforsupportingsustainablelivelihoodsofthepoor.Aswesaygoodbyeto2014andwelcome2015,weatPPRCarelookingaheadtoanexcitingyearofnewactivitiesandchallenges.InApril,2015,PPRCwiththesupportofnationalandinternationalpartnerswillbehostinganinternationalconferenceonthechallengesandthewayforwardonrealizingthegoalsofuniversalhealthcoverage(UHC).InpartnershipwithWWF,PPRCwillbepreparingastrategicdocumentonemergingwaterscenariosandattendanteconomicrisks.WeshallalsobetakingforwardourpartnershipwithBBSonurbanstatisticsandplantohostaninternationalconferenceonurbanpoverty.DetailsoftheseandotherPPRCinitiativescanbeseenatourupgradedwebsite( ).Oneofourwww.pprcbd.orgkeymottoisrelevantresearchforrelevantaction.Wewelcomeyourfeedbacktohelpkeepusengagedonthismission.

-HossainZillurRahman

Photo:TanzibAhsan.

Editor:HossainZillurRahman

Articlecontributionsfrom:HossainZillurRahman

Photocontributionsfrom:DarshanChakmaTanzibAhsan

Editorialteam:ShaerReazTanzibAhsanUmamaZillurJoyantaKumarPaul

Website:www.pprcbd.org

Email:hossain.rahman@gmail.compprc@pprcbd.org

House77A,Road12A,DhanmondiR/ADhaka1209,Bangladesh

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Contributors

PPRC events

People

WaterEconomicsexpertNityanandaChakrabartiandBUETProfessorRezaurRahmanindiscussionwithPPRCteamonWWFrequestforaneconomicriskanalysisonemergingwaterscenariosinBangladesh

PPRClaunchesdisabilitystudyinpartnershipwithDRRA(nationalNGO)andCBM(internationalNGO)–orientationtraining.

(28October,2014)

HossainZillurRahmanmoderatessessionon“WhyScienceMatters”,withpanelistsLucyHawking,MarcusduSautoyandZafarIqbalattheHayFestivalDhaka2014.(21stNovember2014).

Contact us

www.facebook.com/pprcdhaka

PPRCChairmanaddressesinternationalconferenceonsocialprotectioninDar‐esSalam,Tanzaniaviavideolink‐upatUNICEFoffice,Dhaka.

(15December,2014)

PPRCreportHilsaandHilsaFishermenwas launched at the JointBangladesh‐IndiaIUCNEFLseminarattheDailyStarAuditorium, Dhaka. Later the Indianpartners from WWF, Kolkata visitedPPRCoffice.

(2December,2014)

On the cover: The National Parliament Building, (Sangsad Bhaban), an architectural marvel designed by Louis I. Khan, stands tall and proud, lit by an orange glow at night. But is it a place of effective debate and policy-making, or is it just another hollow modern architechtural feat?

NewlookPPRCstaff,withtheirnewuniforms.

PPRCteamvisitsFriendsStylewearfactory,GazipurforRMGworkershealthplansurvey.

(November,2014)

Aretoday'seconomicsstudentsmissingoutonbetterknowledgeofBangladesheconomy,itshistoricalbackgroundandemergingchallenges?Students,teachers,alumniandGuestofHonourProfessorNurulIslamgrappledwiththeanswersattheOpenDialogueorganizedbyDUEDAAandDeptofEconomicsatMuzaffarAhmedChowdhuryauditorium,SocialScienceBuilding,DhakaUniversityon13thNovember,2014.ProfessorNurulIslamwasthefirstPlanningCommissionChairmaninanindependentBangladesh.Workingclosely

withtheSheikhMujibledgovernmentthrough1972to1974,hewasanintegralpartoftherebuildingofanewlyliberatedBangladeshtornapartbyabloodywar,andhelpedsetdownthelawsandregulationsonwhichthecountrystoodsinceindependence.CurrentlylivingintheUnitedStates,hisfaceisnotseenoftenregardingtheBangladeshiperspective,andthroughtheopendialogue,themaingoalwastoletsomeofhisvastknowledgeandexperienceruboffonthebuddingeconomistsoftomorrow.Withtheevent,DUEDAApresidentHossainZillurRahmanwantedtograbtheopportunitytooutlineaseriousquestion

aboutthefutureofeconomicresearchandanalysis,whetherpolicymakersinBangladesharetooconcernedaboutthewrongfactorsandindicators,andhowweareplanningonaddressingtheproblemsahead.Anopendiscussionontheeconomicandsocialchallenges,hehoped,wouldbringouttheproblems,andpolicymakerswouldbeonestepclosertodeterminingeffectivesolutions.ChairedbyProfessorM.A.TaslimandmoderatedbyDUEDAAPresidentDr.HossainZillurRahman,thelivelyinter‐

generationaldebatequestionedprevailingqualityofeducationwiththefocusoneconomics,conflictingburdensimposedbyrisingexpectationsatpersonalandsociallevelsandtheneedforqualitypolicy‐makingtoaddresstomorrow'schallenges.Membersoftheaudienceraisedtheissueofthenumberofjob‐seekersoutnumberingthenumberofaspiringacademics,sayingitisadifficulttask,gettingyoungmindsinterestedandinquisitiveaboutresearchandanalysis.SpeakerssoundedacautionarynoteonadoptingatoocomplacentnarrativeonBangladesh'seconomicprogressandthe

needtofocusonrisksonthehorizon,sothatBangladeshcanstayabreastofeconomicandfinancialthreats.ProfessorIslamstressedthesignificanceofaneducatedandmotivatedmiddleclassfortakingthecountryfurtherforwardbutquestionedwhetheradequatepressureshadyetaccumulatedfortransformativechanges.

Professor Nurul Islam in dialogue with Econ students

PPRC News

Jean Tirole winsNobel Prize in Economics

Exploratory dialogue on launch of annual report on Bangladesh Strategic Scenario

December6,2014,PPRCLawn,Dhaka

Withregionalstrategicscenariosrapidlyassumingneweconomicandpoliticalcomplexities,PPRCorganizedaninformalbrainstormonDecember6,2014initslawnonthepossibilityoflaunchofanannualreportseriesonemergingstrategicscenariosforBangladesh.Asmallcoregroupofeconomists,IRandnationalsecurityexperts,formerdiplomatandjournalistparticipatedinthesessionmoderatedbyPPRCChair.Thefirstintheplannedannualseriesisexpectedin2015.

WithsupportfromTheRockefellerfoundation,PPRChasbeenimplementingatwoyearpolicyandadvocacystudyonpromotingUHCgoalsandidentifyingwaysforwardforBangladesh.Astheculminationofthestudy,PPRCisorganizinganinternationalconferenceonthesubjectonApril9‐11,2015attheRadissonBluWaterGarden,Dhaka.TheWorldBank,BangladeshDiabeticAssociation(BADAS),GonoShayasthoKendra(GK),NationalInstituteforPreventiveandSocialMedicine(NIPSOM),AssociationofMedicalEducation(AME),CenterforInjuryPreventionandResearchBangladesh(CIPRB)andCentreforExcellenceonUHC,BRACUniversityhavejoinedasconferencepartners.The11themesoftheconferenceincludeDilemmasofCare‐Seeking,Qualityofmedicaleducation,Urbanizationandinequitiesofcare,Governanceandethics,Costofhealthcare,Financinghealthcare,Leveragingtechnology,Dataandindicators,Overcomingdisabilities,PreventionandhealthylifestylesandDeliveryinnovations.Acallforabstractshasbeenissuedandregistrationisopenonline.Details:conferenceflyer/ourwebsitewww.pprcbd.org

PreparatorymeetingonUHCinternationalconference

Toobtaincopiesofourpublications,pleasecontactthePPRCoffice at House 77A, Road 12A, Dhanmondi R/A, or call01552342291formoredetails.

Wealsostockcopiesofourolderpublications.Thetwoarticlesfeatured in this issue of our newsletter are from thepublication “Bangladesh Urban Dynamics.” If you areinterestedinreadingthefullarticlesandmuchmore,pleaserequestacopyofthepublication.

Our recent publications:

Mini dialogue on role of polytechnics

PPRCsupportsChittagongResearchInitiative(CRi)inorganizingmini‐dialogueontheroleofpolytechnicsinskilleducation,CRiseminarroom,Chittagong,December20,2014

In2013,thestateofgovernanceintheBangladeshCivilServicehasdisplayedfeaturesofpoliticization,wrongdoing,incompetence,inefficiencyandcorruption.Thecivilservicehasalongrecordofmismanagement.Thesefeatureschallengedthecivilservicetoestablishacitizen‐centricbureaucracybuildingonmerit,neutralityandprofessionalism.Itissufferingfromthedisastrousfailureofprovidingexpectedleadershipandapoliticalroleinthecountry.Currently,briberyandinefficiency(inperformanceandservicedelivery)isprominentandtheBangladeshgovernmenthasdonelittletopunishthewrongdoers.There'sheavypoliticizationofcivilservicebythegovernmenttoaccommodatepartyadherentsandfamilymembers.

Thereissmallscopeofpromotionforthosewhodonotnecessarilysharetherulingparty'sideology.Forcedretirements,administrativeharassmentthroughdepartmentalproceeding,under‐employment(postedinalowerposition),beingstationedinaremotearea,areallsystematicmeasuresofharassingthoseofficialsdeemeddivergentfromthegovernment'sideology.Ontheotherhand,promotions,keypositionsandspeed‐moneygeneratingpostsaregiventothosecivilservantswithpoliticalaffiliationwiththerulingparty.Overtheyears,politicalopportunismamongcivilofficershasreachedastagewheretheyarenowseenattendingthegovernmentparty'spoliticalprocessionsandmeetings(TheProthomAlo,March3,2012).Civilservantsfrequentlytendtolobbytobepostedtopositionsofpower‐mostlyintendingtomisuseitforpersonalgain.Currently,'OfficersonSpecialDuty'(OSD)arehighestinnumbercomparedtoanyotherearlierdemocratic

governments.AsofJune2012,some562officerswereOSDsandasaresult,theywerenotabletowork.Manymoreweredeprivedofpromotionsandproperplacementsbasedonthesamecriteria;althoughkeepingthemidlewascausingthegovernmentanexpenditureofthreehundredmilliontakaperyear(Ahmed,2012).

Governance challenges of the bureaucracy

A PPRC report

Thefullversionofthisarticlewaspublishedin“GovernanceTrendsandPerceptions”,apublicationbyPPRC,in2014.

Retributivemeasuresareoftenintroducedtodemeanthosecivilservantswho'relesspoliticallyinclinedtowardstherulingparty.Forexample,attachinganOSDemployeetoaMinistrywhereheorshedoesnothaveanyspecificjoborproperposition.Inmostcases,he'sassignedalessresponsibleduty.Anotherformofharassmentincludes,placinganemployeeunderMinistryofPublicAdministration(MOPA)inthenameoffurtherposting,andinmanycases,lengtheningthewaitingperiodforanindefinitetimeperiod).Interestingly,duringthistime,anemployeedoesnotgetanykindofsalariesandwages,trainingorleave,whichputshimunderseverefinancialandpsychologicalstress.Majorityofthesecivilservantsaredeprivedfromcompulsoryornecessaryhousing,foreigntraininganddevelopmentprograms.Generallytheyarenotallowedtotakeex‐Bangladeshleave(exceptafewcasesfortreatmentandreligiouspurpose),nolien,nosittingarrangements,noinvitationstoanyofficialmeeting,andnoconsultationaboutanynationalandinternationaleventsordays.Thereisnodefiniteguidelineand

policytodeterminewagesandsalariesforthecivilserviceemployees.Oftenthepartyinpowerusesthisissuefortheirpoliticalgain.Itisevidentthatthereisalackofstandardisationofwagesandsalaries,rightsandprivilegesofallcadresofthecivilservice.ThePublicServiceCommission's

(PSC)suggestionsintermsofcivilservicewerelargelyignoredbythegovernment.ReviewsofseveralannualreportsofPSC(2008to2011)showedthatPSCadvisedintheAnnualConfidentialReport(ACR)ofacivilservant,thatifthereisnoadversecommentandtheoverallevaluationis'AverageorAboveAverage'thanheorshewillbeeligibleforpromotion.ButPSCfoundthatoftenacivilservanthasbeendeprivedofapromotionalthoughheorshehasexcellentremarksintheACRwhilemanycivilservantswerepromotedeventhoughtheygotadversecommentsintheirACR.Itwasfoundthatmoreurbandwellersarecomingtoprovidecivilservicethroughthe

PSCexaminationcomparedtoruralcitizens.Thus,an'educationdivision'wasobservedintheselectionprocessofthePSC.Thereisnogovernmentpolicyinpracticetoavoidthisgap.Thereviewofthereportsalsoindicatesthatmale:femaleemploymentratiointhecivilservicehasfallenovertime(Table1).

ThePublicServiceCommissionhasbecomeheavilypoliticized;briberyisatlargeandnepotismalsoplaysaprominentrole.Younggraduateswithgoodacademicbackgroundsdonotoptforjoiningthecivilservicebutratherchoosetojointhecorporateworldorleavingthecountry.ThereareoftentalksofquestionpaperleaksfromthePSC.Forexample,the33rdBCSexaminationwaspostponedbecauseofaquestionpaperleakwhichhastarnishedtheimageofthePSC.

“Thereissmallscopeofpromotionforthosewhodonotnecessarilysharetherulingparty'sideology.Forcedretirements,administrativeharassmentthroughdepartmentalproceeding,under-employment(postedinalowerposition),beingstationedinaremotearea,areallsystematicmeasuresofharassingthoseofficialsdeemeddivergentfromthegovernment'sideology.”

Recently,eventhoughthegovernmenthassaidthattheyareenactingthe'CivilServiceAct'tomeetthecitizens'expectations;unfortunately,thisActhasnotyetseenthelightandiswaitingforapproval.ThePublicServiceCommissionhasadvisedthegovernmentthatintegrity,honesty,objectivityandimpartialityshouldadequatelybeconsideredinthewayofenacting'TheCivilServiceAct'andthegovernmentshouldconsultthePSCbeforeenactingit.Abolitionofthequotasysteminthecivilservicerecruitmentpolicyisnowapopulardemand.Thegovernmenthas

createdquotasevenforthegrandchildrenoffreedomfighters.Inthelastfewyears,manyprocessions,rallies,andprotestshavebeencarriedoutbythepotentialcandidates.Civilactivists,politicalthinkers,academiciansarealsotalkingaboutabolitionoratleastarevisionofthequotasystemofthecivilservicerecruitment.ThePSChasalsosuggestedsimplifyingthequotasystemintherecruitmentprocess.Asidefrompoliticalideologies,factionalismordiscriminationbasedonhomedistrict,race,religion,gender,etc.is

alsoquiteprominentlypresentintheprocessofrecruitment,postingandpromotioninthegovernmentsector.Thus,publicservantsarenotremainingpoliticallyneutral.Regionalism(regionalprejudice)inpublicservice:Officials,whoarefromthesamehomedistrictasimportant

governmentofficials,tendtoreceivegreaterworkplaceprivileges.Forexample,withtheAwamiLeagueisinpower,manypublicservantsfromGopalgongoradjacentdistrictshavereceivedrecruitmentsandpromotionstokeypositionsandotheradministrativeprivileges.Also,whenBangladeshNationalistParty(BNP)wasinpower,publicservantsfromBograandadjacentdistrictsreceivedsimilartreatment.Thusthepresentgovernmenthascreated2,51,975posts(TillDecember2012)(9thParliament16thSession,2013).Thoughtherearearound59609vacant1stand2ndclasspositions(9thParliament8thSession,2011).Surprisingly,theMinistryofPublicAdministration(MOPA)anditssubordinateofficeshave6440vacantposts(StatisticsofCivilOfficersandStaff,2010publishedin2012)(9thParliament13thSession,2012).Thegovernmenthasquiteoftenbeenaccusedofusinglawenforcingagenciestofindoutthe'party‐loyal'andsort

outthe'disloyal'civilservantstogivepromotionsandplacements.ThepresentgovernmenthasamendedThePublicServants(Retirement)Act,1974andhasincreasedtheretirementageofafreedomfighteremployeeto60andothers(non‐freedomfighter)to59(9thParliament16thSession,2013).Moreover,thePromotionpolicynamed'TheDeputySecretary,JointSecretary,AdditionalSecretary,andSecretary,2002'isnotwell‐circulatedandhascreatedgrievanceamongthedeprivedcivilservants.Thepresentgovernmenthastaken

initiativestointroducee‐governanceinthecivilservice.Forexample,64districtadministrationshaveweb‐portals,digitizedformsandselectede‐servicesavailable.Thegovernmenthasalsointroducedonestopgovernmentservicesinseveralpublicofficesforexample,e‐payment,e‐TIN,etc.Inrecenttimes,therehasbeenafrequentinterferingdirectionfromhighercourts'regardingabsoluteexecutivefunctionaries,whichunderlinesthelackofefficiencyandcapacityofcivilservants.Thegovernmentwouldbebetteroffencouragingneutralityandhonestyamongcivilservants.Therecruitmentanddevelopmentofcivilservantsshouldbebasedonmeritandnotonpoliticalloyalty.Contractualappointmentinthecivilservicehasincreased.Forexample,currently49peopleareworkingassecretaryoradditionalsecretaryonacontractualbasis(9thParliament18thSession,2013).Thegovernmentdoesnothaveanyplantostopcontractualappointmentinthecivilservice(9thParliament8thSession,2012).Thegovernmentisusingcontractualcivilservantsasapoliticaltool.Thetrendofgoingoverseasforhighereducationhasincreased.Butalargenumberofthesestudentsdonotcome

back.Thus,Bangladeshisbeingdeprivedofapoolofwestern‐educatedandacademicallysoundjobcandidates.Butthereisnoinitiativeorprogramtoattractandretainthesestudentsandpreventbraindrainage.

Photo:TanzibAhsan

Newinitiativeonfinancialempowerment

Bangladeshhasbeenwitnesstoaplethoraofanti‐povertyinnovationssomeofwhichsuchasmicro‐creditandconditionalcashtransfershavegoneontowincriticalglobalacclaim.Whilethesehavecontributedtosignificanttransformationofpovertyrealities,thescourgeofextremepovertyisfarfrombeingeliminated.ItisthereforehearteningthatBangladeshcontinuestowitnessnewereffortsatanti‐povertyinnovations.Anewfrontierinsucheffortsisthemobilizationoffaith‐basedsystemssuchastheIslamicsystemofzakat.

Traditionallyzakatandthecompanioninstrumentofsadaqahhavetakentheformofindividualcharityaimedatprovidingsomeformofimmediaterelieftotherecipients.Thepossibilityofpoolingsuchsupportfororganizedinitiativesaimedatsustainablechangesinrecipient'seconomicvulnerabilitieshasnotbeenadequatelyexplored.Aninterestingexampleandapossibletrend‐setterinthisregardisthe2011zakat‐basedJeebikaKarnaphuliprojectthatisbeingimplementedinapoorriver‐sideneighbourhoodontheeasternoutskirtsofChittagongcitysince2011.PowerandParticipationResearchCentre(PPRC)recentlyundertookanevaluationofthisongoingprojectforanindependentassessmentofitsinnovationpotential.TheassessmentwasundertakenwiththesupportoftheA.K.KhanFoundation(AKKF)andtheCentreforZakatManagement(CZM).

Distinguishingfeatures

Thoughrelativelysmall‐scale,theJeebikaKarnaphuliMohoraprojecthasanumberoffeaturesthatmarksitoutasdifferentfromthegenerally‐knownmicro‐financemodel.Beneficiariesareprovidedwithafive‐foldstakeintheproject:EquitycapitalintheformoftheZakatandCSRallocationforeachbeneficiarythatformspartofagroupequityheld

inabankaccount·Accesstoarevolvingfundformicro‐loans.Thebeneficiarygroup'spooledequitycapitalconstitutestherevolving

fund.Eachmemberofthegrouphastheoptionofapplyingforamicro‐loanasperthefamily'sneedwiththeprovisionforpayingaservicecharge/interestasintheregularmicro‐financemodel·Groupprofitaccruingfromtheinterestchargedforthemicro‐loanswhichaccumulateinthegroupbankaccount.

Thissecondaryincomestreamisearmarkedforequaldistributiontoeachmemberofthegroup.·Socialsectorsupportcoveringeducation,health,water,sanitationandhomegardening.·Capacitybuildingonmanagement,leadershipandenterpriseskills.

BudgetandCostEfficiency

Therearethreebroadbudgetitemsintheproject:i)Capitaltransfertobeneficiariesii)Capacitybuildingandsocialsectorsupportandiii)Implementationcost.Theimplementationcostisfurthersub‐dividedintotwocomponents–thecostfortheorganizedtransferofthezakattothebeneficiarybankaccounts(completedwithintheinceptionphaseof

Innovations in financial empowerment

Hossain Zillur Rahman

Zakat for sustainable livelihoods

6months)andthecostforimplementingthefollow‐uplivelihoodproject.Thelargestbudgetaryitem–54.7%‐isthecapitaltransfertobeneficiaries.Anadditional22.7%coverscapacitybuildingandsocialsectorsupporttothebeneficiaries.Thetwotogetherindicatethat77.4%oftheprogrambudgetconstitutesdirectsupporttothebeneficiaries.

ProjectImpact

Impactoftheprojecthasbeencapturedintermsofindicatorsofeconomicempowermentandqualityoflife(Figures2and3).Overthethreeyearprojectperiod,incomeroseby80percent,andexpendituresby26percent.Therewasalsosignificantcapitalaccumulationthatincludeda)Taka20,000transferredattheoutsetaszakatcontribution,b)Tk.2177savedonaveragebyeachbeneficiaryoverthethreeyearprojectperiodandc)Tk.3118accruingtoeachbeneficiaryasshareinthegroupprofitfromtheoperationoftherevolvingfund.Qualityoflifeindicatorsalosshowedmajorimprovementsintermsofhousing,sanitationanddiets.Projectimpactwasnotonlyevidentintermsofsuchindicators.

FGDswithbeneficiariesalsobroughtoutmorequalitativeaspectsofimprovement.Livinginaperi‐urbanareaandexposedtoNGOmicro‐creditactivitiesforlong,thebeneficiariesalreadyhadaccesstofinancebutfeltinadequatelyempoweredbysuchaccess.MembershipintheJeebikaKarnaphuliMohoraProjectwasjudgedasprovidingnotmerelyaccessbutfinancialempowermentinamoresubstantivesense.Fourfeaturesweresingledout:i)provisionofzakat‐basedequitycapitalintheformofthemember'sshareinthegroupfundwhichservedastherevolvingfundii)nohiddenchargesintheprovisionofmicro‐loansintheformof5%deductionforcrisisfundorforcedsaleofinputsiii)moresupportiverepaymentcultureandiv)alessbureaucraticmanagementprocess.Duetothesedistinctivefeatures,therehasbeenawholesaleexitbyProjectmembersfromconventionalNGOmicro‐creditaswellasfrommohajoni(highinterestmoneylender)loanmarket.MembersclearlyfeltJeebikaKarnaphuliMohoraProjectloanswasprovidingbettervalue‐for‐moneyenablingthemtoretainasmuchas30%oftheearningsgeneratedbysuchloans.Theotherimpactwasonreducingthestructural

disadvantagesofmarketparticipation.Typicallythesefamiliesengagedinfishingandbamboo/caneworkshadtodoadvancesaleoftheirproducttofinancetheloansneededforprocuringtheinputs.Theywerethusatadoubledisadvantage–procuringinputsonunfavorabletermsaswellassellingproductsatunfavorableterms.ButwiththeaccesstothetypeoffinanceprovidedbytheJeebikaKarnaphuliMohoraproject,theywerenowabletomaintaininventoriesprocuredatfavourabletermsandalsomovetowardsownershipoftheircapitalequipment.Anadditionaldimensionofqualitativeimpactwasspill‐overeffectsimpingingoni)womenempowerment,ii)communityharmonyandiii)leadership

LessonsandChallenges

Akeyconceptualweaknessofanti‐povertyeffortshasbeentounderstandtheprocessofgraduatingoutofpovertyasaone‐stepjourneyfrombeingpoortonon‐poor.Groundrealitiesbeliesuchasimplisticunderstandingpointingrathertowardsamulti‐stagejourneyofchange.Akeyissueposedbytheprojectexperienceistheoptimaltimingforexitbyprojectmanagement.Manygraduation‐focusedanti‐povertyprojectshavefailedtosustaintheirimpactbecauseofinadequateattentiontotheoptimaltimingofexit.Consequently,positiveimpactsathouseholdlevelhavequicklyfallenintoreversals.CurrentprogramplanningintheJeebikaprojectisbasedona3yearprogramphasefollowedbya6monthexitphase.Butsuchplanningappearstohavebeennarrowlybasedontheprogrammanagement'sown'management'imperativeratherthanonthemoreimportantgoalofhowprogramimpactforthebeneficiariescanbemademoresustainable.ParticipantsintheFGDswereemphaticthatcatalyticelementsoftheprojectwereindangerofdisintegratingiftherewasaprematureexitofprogrammanagement.Theirpointwasthatthegroup'mission'hadnotyetbecomeimmunefrompressuresfromfamilymembersparticularlyhusbandswhoinmanycasesarelikelytobenarrowlyfocusedontheimmediatebenefitsofwithdrawingtheindividual'equitycapital'i.e.thezakatamount,onceprojectisdeclaredtobecompleted.Ifsuchwithdrawalweretosetinmotion,theentireedificeofthefinancialempowermentmodelwaslikelytocollapse.Projectexperiencesindicatethatthefirstphaseofapoorandstructurallydisadvantagedfamily'squestforsustainable

graduationistobuildresiliencei.e.reducetheextremeintensityofpovertyintermsofdailyliving,laythefoundations

formakinglivelihoodsmoreremunerativeandbuildsomegrouporganizationalcapitalwhichcannurturetheindividualeffortsatself‐improvement.Programmanagement'sroleinthisresiliencephasehasofnecessitytobedirective.Toalargeextent,thisispreciselywhathasbeenachievedbythe3yearprogramphaseofJeebikaKarnaphuliMohoraProject.However,forsustainablegraduationtheresiliencephasehastobefollowedbyagraduationphasewherethefocusisonconsolidatingthegrouporganizationalcapitalandtransitionoftheprogrammanagementfromadirectiveroletoasupportiverole.Tosummarize,suchanti‐povertyprojectsneedstobere‐organizedasatwophasemodel–aresiliencephasefollowedbyagraduationphasewithqualitativelydifferentrolesforprogrammanagementinthetwodifferentphases.Howsoevertheexitchallengesareaddressed,itisclearthatthezakat‐basedJeebikaKarnaphuliMohoraProjectprovidesa

newmodeloffinancialempowermentbasedonawholenewcategoryofprogramsupportnamely'equitycapital'basedonthezakatdonation.Togetherwithastrongerfocusoncommunityintheformofthe30‐memberVOs,amoresupportiverepaymentcultureandaparallelprogramsupportpackageaimedatthesocialneedsoftheextremepoor,themodelmeritsfurtherattentionasanewandpotentiallymoretransformativemodeloffinancialempowerment.Abindingconstraintonreplicationinthiscaseisofcoursetheavailabilityofzakatfunds.However,sincezakatisauniversaldictumforMuslimsandsincesuchfundscanbesupplementedbyothersourcessuchasCSRfunds,thereismeritinelevatingthemodeltolargerattentionbyinstitutionalizationofZakatasanothereffectiveinstrumentofpovertyalleviationthroughnettransferofcashassetthroughtheZakatsystem.