In 2011, the government of Bangladesh began an investigation into the financial dealings of the Grameen Bank that won the Nobel Peace Prize in 2006. This disciplining of a world-renowned institution and its founder by the state reconfigures the altered relationship between the state and NGOs in Bangladesh. This article investigates this about-face between the state and NGOs from the 1990s, when their relationship was characterized as ‘partners in development’, to the late 2000s when the state saw the leading NGOs and their leaders as potential political adversaries. In Bangladesh, the former relationship of a weak state vis-à-vis the powerful, western-funded NGO has been recalibrated. Under the present condition of authoritarian rule, the state is willing to accept the role of the NGO as a development actor but not as a political contender. This article examines this shifting relationship between the state and NGOs.
