Improved communication and economic opportunity: The information and communication revolution creates significant new opportunities for northwest Bangladesh. A revolution in road communications (including the Jamuna Bridge) is now linking this remote and neglected region with the national (and potentially) regional mainstream (for example, the Nepal trade corridor). The potential transformation in mobility and access, along with associated psychological changes, creates a supportive environment for innovation and enterprise as well as creative development possibilities.

Relative socio-political stability: Despite its vulnerability to many pressures, continued if fragile political and social stability in Bangladesh, offers modest promise of future progress. Some stability in the electoral process, limited efforts to improve government accountability and the relatively harmony among the population (and different groups).

Increased literacy and awareness: The past decade has seen modest advances in literacy and development awareness among the rural population as a result of development efforts including the spread of primary education and the improving status of women. This educational advancement creates a historic platform for further development advances.

Increased collaboration and networking: There is scope for improving effectiveness through increased collaboration and networking with other development and related organizations at local, regional, national and international levels. RDRS intends to extend its partnership with Government Organizations, NGOs and CBOs in the north and local government institutions in its working area which should help strengthen institutional capability and outreach to the disadvantaged and vulnerable people of RDRS working area.

Emergence of federations: The growth of self-managed Federations - apex organization of mature Primary Groups at Union level. With continuing RDRS support, these Federations have great potential to emerge as more capable and representative Community Based Organizations (CBO) in future. This creates new possibilities, opens new avenues of partnership, and the hope that Federations can sustain and multiply development activities currently being implemented by RDRS. Such a partnership will not only facilitate gradual transfer of ownership of the development programme to people themselves, but ensure active participation of the target constituency and programme sustainability.

Intensifying external resource constraints: The recent global decline in aid resources is expected to continue as a result of reduced commitments from industrialised countries and the shift to trade and investment as primary development instruments. The share of global aid channeled to south Asia is likely to reduce both as a result of perceived improvements in economic conditions and through the diversion of resources to new and strategic priority areas emerging in other parts of the world. Consequently, reduction in core funding and growing uncertainties about bilateral funding will exert increasing pressures on the continuity, coherence and RDRS.

Competition among NGOs: Competition for aid channeled through NGOs will intensify in both north and south. In Bangladesh, further intensification of NGO competition for scarce resources, and coverage will continue. There will continue to be mainly adverse impacts through reduced funding and competition for contracts, duplication of coverage and unco-ordinated efforts especially in the area of credit, increased competition for staff, tendency for greater government regulation. Mid-sized NGOs such as RDRS, especially those with holistic development approaches, are likely to face sever challenges from all fronts.

Adverse effects of micro-credit dominance: The preponderance of microfinance (especially microcredit) at grassroots levels primarily through NGOs presents several risks – debt overhang among the poor, and imbalanced development. Within integrated development programmes such as RDRS, the natural assertiveness of microcredit threatens to undermine the priority and quality of essential non-credit interventions. Microfinance is still considered an essential tool in poverty alleviation but needs to be applied carefully.