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As someone from Bangladesh I think NGOs should have a much bigger role in development.

4 ideas where governments can create an enabling environment for the big NGOs like BRAC.

1) School and education vouchers will enable poor parents to send kids to the schools of their choice backed by public funding. In this way, NGOs can have good incentives to perform and also help with education delivery.

2) Healthcare vouchers. Same benefits as school vouchers.

3) Poor countries have very low judicial capacity. Governments can promote alternate dispute resolution (ADR) for property disputes, contracts and family laws. This can enable NGOs to augment the judicial capacity of the country.

4) Charter cities. This is probably the most radical of my proposals. Governments should lease out some underdeveloped land that's preferably close to a port. In this land the NGOs can build their city with its separate legal system and civil police force. The charter city can fast track the process of bringing first world institutions in a poor country. This can enable entrepreneurship and FDI. The host government can get a share of the charter cities' tax revenue in exchange.

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