Bangladesh is a country of poor households. Half of the total population (that is 60 million) lives below poverty line. Without a fastest intervention of the poverty alleviation programme national growth and related other developments are bound to be disrupted. Government has a lot of poverty alleviation programmes but most of them are slowly implemented. For the sake of the nation fastest management of the programmes must be required by government and NGO community. But due to structural inadequacy and bureaucratic tradition of financial management it is not so happening.

NGOs play a more important role in Bangladesh than government development agencies. NGOs are directly organizing the poor. The most Important activities of NGOs in Bangladesh are micro-finance service, promotion of Income generation activities, self-employment and empowerment of the poor women. Number of NGOs is also Increasing very

fast in Bangladesh, but most of such NGOs fail to maintain the required standard of service.

But some Of the MFI category large NGOs have been successfully implementing their programmes. One of them is ASA. It has achieved a remarkable Kowth, compared with other rge NGOs in Bangladesh. It has been providing financial service to the poor households efficiently in an Innovative way. Its low cost management and sustainable implementation process has drawn attention of many in the country and abroad. Lot of visitors from home and abroad come to see its approaches and implementation at the field level. At present it has extended its financial service to 61 districts through 800 units and the disbursed amount up to May. '99 was Tk 1,600 crore as loan amongst nine lakh borrowers.

ASA has developed very easy

delivery mechanism to reach the poorest clientele at grassroots level. It has extended its operational unit offices to remote areas and has decentralized power and responsibilities up to branch level. Its recruitment process is also very simple. It can recruit a thousand credit officers within 15 days notice through advertisement in daily newspapers. And the recruitment of staff is based on candidates' smartness, physical fitness and presentation skill. Its training module is another innovation for fastest growth. It believes in "on-the-job" training instead of long-time classroom lecture. One senior credit officer takes the responsibility of pre-service,orientation (PSO) of another newcomer. They can complete training within nine days. Newly recruited credit officer follows the senior's behav-

ior pattern, communication skills, public motivation, record keeping system, book keeping and posting system and how he organizes and mobilizes the community. This innovative process trains the credit officers without cost. And it has decentralized the appointment authority to the Regional Manager level. All its operational decisions are guided by written manual. All the Unit Managers follow the written manual.

Savings and credit methodology is one of the important factors for fast growth of an MFI. ASA's simple delivery mechanism and easy terms and conditions are the basic factors that have helped in its fastest growth. It followed a policy of one year one loan to one person and quick disbursement of the loan (borrower receiving loan after eight weeks of enrollment

as member): first loan disbursement is to the tune of Tk 5.000-6,000 and it is increased by Tk 2,000 to 3,000 every circle, if borrower has proven her/his capacity of utilization. It distributes loan fund in figures like 4.000, 5,000, 6,000 for easy calculation and weekly repayment Installment is also collected in round figure. Borrowers repay their loan at the rate Tk 25 per thousand each week. After recovery of the last installment provision is there to distribute another circle of loan to the borrower in enhanced amount. Its book keeping and other record-keeping 3stem is also very simple, but

I the accounting requirements are covered there.

Its case of any change in policy procedure or regulation it does that in consultation with clientele and different level employees. And the NGO runs its administration and

management at low cost. Its unit office is very small with one branch manager and four credit officers: one unit serves 1440 group members. All the furnitures and equipment of the units is standardized within fixed budget.

Besides cost efficiency, quick decision is another relevant factor for fast growth. ASA . has decentralized the decision making authority up to grassroots (unit office) level and 16 senior level officers (divisional manager) are posted at the field level. Nobody has to depend on central office approval and unwanted delay is avoided. This innovative, fast and sustainable model is being replicated by other MFIs at home and abroad. This model was implemented in 1998 in Jordan, Afghanistan, Tajikistan. Cambodia and India through ASA's consultants, with assistance, from Save fheCfiildren (USA) and the Netherlands based donor agency BILANCE. Presently this model is being implemented in the Philippines and Nigeria, financed by UNDP.