Association For Social Advancement - Impacts On Bangladesh

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.