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.