Shifting Nature of State / Citizen Liaison in Fragile States: A Case Study of Micro-Credit Borrowers in Urban Slums in Dhaka (Bangladesh)

Notwithstanding excellent socio-economic development, Bangladesh remains a fragile state due to its acute poverty, development challenges, high risk of decline - or even failure, lack of capacity and political will of the state structures to provide public safety and security, good governance and equitable economic growth for its citizens. This fragile state has lost its capacity to perform the basic functions through institutions and can not assure human and food security to the population, leading to deterioration of public authority and violent contestation over who will control the resources and political power and acquire the benefits that international agencies brings. Bangladesh share many features of fragility such as weak governance, failing public institutions, social instability, dismal growth prospects without donor assistance, lack of essential goods and services for the lower strata of society. Following are the key features of local fragility: • Inability or reluctance to sufficiently assure the provision of security and basic services to significant portions of population • Doubts on the legitimacy of the regime • High level of state sponsored corruption • Fear of economic collapse or hyperinflation • Deadly cycle of repeated failure and recovery • Food insecurity • Inequitable treatment and protection of women • Eroding Law & Order situation and fear of violent conflict • Lack of stability, security, reform, and capacity building for institutions (education, health and financial services • Ineffective governance In current global political scenarios, the fragile and vulnerable states have the potential to generate multiple cross-border “spill-overs” including terrorism, weapons proliferation, organized crime, regional instability, and human insecurity, therefore international community needs to explore strategies for horizontally sustainable socio-economic and political stability.