Coping with Disaster in Bangladesh: PKSF Experience of Flood 1998 and Microcredit
Ahmed, S.
Publication Date: 2000
Published by: Initiative in Research and Education for Development in Asia - INASIA
Document Type: Case Study
Natural calamity and microfinance
The paper presents a detailed picture of the aftermath of the 1998 floods in Bangladesh, that lasted more than three months and affected more than two-thirds of the country?s population. The paper provides insight into the enormity of the task where about 1.65 million rural people, covered under the microcredit program, were affected. The task facing Palli Karma Sahayak Foundation (PKSF) was:- Near total loss of housing, livestock and crops,
- No avenues for earning any living for at least three months, consequently loan outstanding of approximately Tk. 36.52 crore,
- Long term effects on the microcredit program.
The paper provides an insight into the strategy used by PKSF to meet the challenge by:- Rescheduling of loan,
- Creation and utilization of disaster management fund,
- Finding ways to meet the fund?s requirements of partner organizations for administrative costs.
The paper also gives some interesting examples of insurance covers being provided by various microfinance organizations such as Welfare Association of Village Environment (WAVE), Participatory Development Initiatives of Masses (PIDM), Association for Rural Advancement in Bangladesh (ARAB), Village Education Resource Centre (VERC) in Bangladesh.
The author concludes by commenting on the success of the innovative strategies used by PKSF and hopes that the experience will help them in meeting other natural calamities in the coming years.
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