A participatory approach: shifting accountability in microenterprise development

Although non-government organisations (NGOs) play an important role in poverty alleviation, their accountability to beneficiaries (the poor) for sustainable poverty alleviation is often criticised. In the literature, a participatory approach to strengthening NGO downward accountability has been widely discussed and various mechanisms for participation are identified; however, it is unclear how a participatory approach is implemented in practice to enhance NGO accountability to beneficiaries. Using accountability concepts, this study examines a participatory approach within the practices of NGOs engaging in microenterprise development in Bangladesh and Indonesia. Findings show that an effective participatory approach needs to address three questions: who participates, what to participate in, and how to participate. Within this approach, participation for beneficiary empowerment involves three stages: consulting, partnership, and delegated control. These stages are not linear, but rather a recurring, iterative process, providing a graduated, progressive approach to empowering beneficiaries. These stages recognise mutual accountability between the poor, as well as the public and private sectors, providing a basis for enhanced NGO accountability to beneficiaries at a strategic level – and enhanced sustainable outcomes for poverty alleviation.