NGO Funding and Aid Dependency: A Case Study in Bangladesh

Summer 2006

Aeshna Badruzzaman : Development Studies, Economics

Mentor: Darren Zook, Political Science, International and Area Studies

Non-governmental Organizations (NGOs) are playing an increasing role in the economic development of the global ‘south.’ Bangladesh in particular is a country in which NGOs have emerged as a huge portion of the country’s source of development aid. I will be examining two particular organizations in Bangladesh. Both organizations allocate funding to NGOs. The first acts somewhat like a bank for NGOs by using loans it received from the government, to loan money to NGOs, which in turn give micro credit loans to villagers. The other organization also acts as a funding mechanism for NGOs, but it gives money to organizations through grants rather than loans. I will be investigating these two funding models in order to see how funding sources influence the kind of projects that NGOs pick up. In order to do so, I will be comparing these organizations’ original stated missions and see how their projects have changed over time.