Econ. 617 - Globalization and Economic Reform

Non-Government Organizations and Nepal

1.  Introduction

Government involvement is mainly on public goods, defense, diplomacy, macroeconomic management, justice, legal matters and infrastructure like social, physical, education, health, transportation, and environment protection. Regulatory and promotional role of government in the economy by using its power, enact the law to regulate different economic activities. The government intervenes, the activities of private firm by using various specific policies.

Citizen sector is run by private individuals or groups as a means of enterprise for profit, and is not controlled by the state. The private sector employs most of the workforce and provided goods and services, generates tax revenues to finance essential social and economic infrastructure, and develops new and innovative solutions that help tackle development challenge.

In such situation the civil society sector has to try to restrain both power-oriented government and profit-oriented business sector taking the side of the people in order to protect people's rights and interests. It the civil society is strong the government will try to become more democratic and people's welfare oriented. Similarly, the business sector will also become more responsible and sensitive. The main mission of the civil society including NGOs should be to provide service to the most venerable section of the society to make them empowered, capable and organized, so that they become able to defend their right and to enhance their quality of life and living standard. Their objective is not to substitute the government but to show the example of service to draw attention of the responsible agencies and to help the local people to be self-reliant. (Literacy Watch Bulletin, 2000)

For the overall analysis of economic development process, the role of Community Based Organizations (CBOs), Non-governmental Organizations (NGOs) and International Non-governmental Organizations (INGOs) is essential and that must need to be assessed. This study aims to analyze the role, importance, strengths, weakness of those Civil Society Organizations (CBOs) with historical background including international as well as Nepalese context. This study is descriptive in nature based on existing literature found in various books, journals, newspaper, articles, reports, and internet surfing.

2. Subject Matter

The associations of citizens (outside their families, friends and businesses) entered into voluntarily to advance their interest, ideas and ideologies. Of particular relevance to the UN are mass organizations (such as organizations of peasants, women or retired people), trade unions, professional associations, social movements, indigenous people's organizations, religious and spiritual organizations, academic and public benefit non-governmental organizations.

Service delivery through developing, monitoring and implementing projects/programs; representation of aggregate citizen voices; advocacy and policy inputs with the help of think-tanks, research-oriented institutions and watchdog institutions to provide expertise and lobby on particular issues; capacity building including funding, training and raising awareness; and foster collective social activities, including religious groups are the major performance of CSOs.

It is a democratic instrument to create sustained social change. Focus is to build equality across socially in all streams like health care, environment, quality of education, access to technology, access to information for the disabled, popular participation in the governance and development processes, shaping the core human values – freedom, justice and solidarity.

A value-based organization, NGO, is any non-profit, voluntary citizen's group, which is organized on a local, national or international level which depend, in whole or in part, or charitable donations and voluntary service and entirely or largely independent of governmental. NGO has become shorthand for public or the world at large through the provision of advocacy or services. They include organizations characterized primarily by humanitarian or cooperative, rather than commercial objectives and devoted to environment, development, human rights and peace and their international networks .They may or may not be membership-based. Register/mandatory, formation of constitution, executive board, membership, rules/regulation, and access to civil society are the basic components of formalization of every kind of NGOs.

Strong grassroots links, field-based development expertise, ability to innovate and adapt, process-oriented approach to development, participatory methodologies and tools, long term commitment and emphasizes on sustainability, cost effectiveness are the major strengths of the NGOs. 

There is no generally accepted definition of an NGO and the term carries different connotations in different circumstances. Nevertheless, there are some fundamental features e.g. independent from the direct control of government; not be constituted as a political party; be non-profit-making; and be non-violent (not be a criminal group).

The World Bank has divided NGO into three main groups. The first is community-based organizations that serve population in a small geographical area. The second is national NGOs, which operate in individual developing countries. International NGOs are the third kind. It is being often used synonymous to community work, community development and community mobilization. Scenario of Changes in Terminology Covering NGOs is presented in the following table below.

Level of organization	From 1945 to Early 1990s	Early 1990s onwards
Local	National NGO, at the UN Not discussed elsewhere	Grass-roots, community based or civil society organization or local NGO
Provincial	National Ngo, at the UN Not discussed elsewhere	Civil society organization or local NGO
National	National NGO, at the UN NGO, outside the UN	NGO or national NGO or Civil society organization
Regional	International NGO	NGO or civil society organization
Global	International NGO	NGO or Major group or civil society organization

On the basis of cooperation and coverage, CSOs are basically categorized as CBOs with local coverage, NGOs with national coverage and INGOs with global coverage and that CSOs are charitable, service, participatory or empowering oriented. Here, we are more concerned as NGOs primarily used for development orient organizations other than charitable organizations.

Basic categories of NGOs presented by Adam Walker and Laura Williamson in their article are as follows:

1. Operational NGOs: Its primary purpose is to mobilize resource in the form of donations/materials/volunteers to design and implementation of development-related projects to achieve small/mid-scale changes. Project appraisal procedure including planning, preparing, application or proposal, budgeting, accounting of reporting with minimum time and expertise also related with operational NGOs. E.g. Centre for Development and Population Activities.
2. Advocacy NGOs: The primary purpose is to defend or promote a specific cause and who seek to influence the policies and practices of countries for the large-scale changes. Fund revising on a smaller scale and persuading people to donate their time. Donors may not impose administrative burdens but supports supplied with information on an efficient regular basis. E.g. Amnesty International.
3. Humanitarian NGOs: This type of NGOs' primary purpose is to provide aid in disaster areas, and alleviate suffering from poverty and disease. E.g. Red Cross.

Despite their fundamental differences, NGOs characterized by Fund raising, mobilizing of work by supports, organizing special events, cultivating media, targeting the sequent of civil society in the term target population, endeavoring the result-oriented outputs. They are functioning for setting agendas, negotiating outcomes, conferring legitimacy, implementing solutions with the prospects of high potentialities, best development actors, powerful pressure group, effective/sustainable service provider, expectation/hope of people-upcoming.

Capable leadership, team spirit, contribution review and update, mobilization/transparency, sound system, cooperation, result oriented by minimizing state roles and enlarging NGOs/private activities are the basic strategies of every kind of NGOs for the successful operation.

NGOs may also face the problems related with Management, staff, executive member, system, fund, finance, environment, external relation with limited financial and management expertise, limited institutional capacity, low levels of self-sustainability, isolation/lack of inter-organizational communication and/or coordination, small scale interventions, lack of understanding of the broader social or economic context.

Despite the essential development role for social movements with some problems and limitations, NGOs are not free from critics as an image of donor centric/project driven, defamed for earnings/maximum profits, gaps on good governance-institutional/national level, lack of professionalism/conducive environment, difficult to work with different stake holders. Some aid groups are used to propagate western values, as Christian missionaries did in the 19th century that disrupts to local cultures/customs. Some projects may not clearly be in the interests of the countries. (E.g. buying slaves in order to free them) Can cause represent among locals if NGOs employees come with western living standards and divert money from local governments. Can complicate foreign policy as NGOs also get involved in situations where their presence may prolong or complicate wars by unintentionally feeding armies, sheltering hostages or serving as cover for warring parties. (Adam Walker, Laura Williamson)

3. Analysis

Globally there are three prominent frameworks to which the major INGOs and many national CSOs adhere. The Sphere Project was initiated in 1997 by a group of humanitarian CSOs and the International Red Cross and Red Crescent Movement to address minimum standards of humanitarian responses with protection and assistance pillars. The INGO Accountability Charter is an initiative involving 28 INGOs, which was launched at June 2008 in response to issues of INGO legitimacy and accountability in the light of their increasingly influential role in the international arena and their increased access to resources and policy making circles. The Istanbul Principles for CSO Development Effectiveness and Its International Framework establishes global principles to guide CSO practices in development. In June 2011, the CSO-led Open Forum for CSO Development Effectiveness brought together 200 representative organizations from 82 countries to adopt the 'Istanbul Principles for CSO Development Effectiveness' and an international framework as guidance in implementing these principles.

3.1 Role of NGOs for Development and Poverty Alleviation

There are a mix of forces which have fueled the rapid rise and prominence of NGOs. The prevalence of weak states with poor performance of the public sector and declining markets, more flexible and adaptive NGOs for quick respond for people's need with cost effective manner has led to the proliferation of NGOs as the only alternative to promote grassroots development.

It is noteworthy that in developing countries NGOs have more space and range of activities than the developed countries due to the cumbersome government as too many ministries with competing interest, too many inefficient PEs, too urban oriented in both staff and outlook, too much corruption and too little innovation. Moreover, NGO roles/responsibilities and the channels of deliverance or the implementation mechanism may differ a little bit, as per need and situation. Social issues at community level with multiple components emerge as crucial issues in developing societies/countries whereas, economic, environmental and developmental etc are major areas for NGOs to generate powers/programs.

In developing countries NGOs develop through different stages. Initially most the NGOs are at first organized as an emergency service provider when some natural disaster happens like earth quake, flood, landslide, and epidemic etc. Then gradually they take up people's welfare-oriented development program such as setting up health post, saving and credit groups for women, starting literacy classes etc. Gradually they try to empower the marginalized people and to undertake advocacy role with the government, power holders in the society and to promote international solidarity. (Literacy Watch Bulletin, 2000)

Community health promotional/education with care and support, awareness, rescue and recovery for HIV/AIDS and other various diseases; community social problems like juvenile delinquency, run away girls (vulnerable group of various forms of exploitation), street children and related issues, prostitution/trafficking within and cross border and recovery; environmental issues of sustainable water/energy consumption, maintaining mountains/forests and environment culture, mobilization/utilization of natural resources, neat clean and healthy environment recovery; economic concerns of micro enterprises and micro loans, skill training and generation of employment sectors, product promotion/distribution (bazaars/marketing/sales/purchase etc.), cooperative creation, financial consultations, career services and job search assistance; and development with schools/hospitals/infrastructure constructions, cultural center construction of operation, agriculture or other natural economic, potential resources conservation/promotion and mobilization are the major Emerging areas of NGOs activities in developing countries.

NGOs enhanced knowledge base advocacy and lobbying, membership in national delegations, contribution to compliance review and enforcement as well as dispute settlement procedures, ensuring transparency as a third development partner in these days. Outsourcing modality has been introduced by the government to minimize government burden and increase efficiency based on NGOs functioning. Roles are mostly created towards social development/social transformation ensuring human rights, social justice, democracy, development and environment and so on by spending billions of dollars through NGOs INGOs. An INGO has the same mission as an NGO, but it is international in scope and has outputs around the world to deal with specific issues in many countries.

3.2 NGO's New Approaches to Influencing Policy

NGOs select awareness –raising, mobilization of public opinion, providing expert advice, lobbying approaches/strategies depending on three factors: the atmosphere and kind of dialogue which exists between the organization and the authorities, analysis of the risks involved and the organization's culture. A study commissioned by European Commission in 2003 shows that such "external advocacy" campaigns by NGOs had only had a relatively limited impact on the decisions and directives. The study concluded that the strategies used to influence civil servants in European institutions, who are less receptive to public opinion campaigns, needed to be revised.

Nowadays, however, a large number of international NGOs opt for "internal" advocacy and target political decisions-makers. NGOs attempt to influence public policy via active engagement in current debates based on their strength of their field experience by taking part in international social and political debates. International NGOs has been able to position itself to such an extent that they are now listened to by governments and the most powerful corporations. Thus, NGO networks should be capable of gathering and organizing information should be able to take positions and monitoring the practical implementation of decisions and commitments is a form of safeguarding governance.

Influencing decisions through political advocacy is perceived to be a form of interference or intrusion in the exercise of power. It might create conflict in the decision-making process. Therefore, NGOs must establish their legitimacy and credibility.

From the different international treaty like Convention on the Rights of the Child Geneva Declaration on Armed Violence and Development, Geneva Protocol, Hague Protocol, Kyoto Protocol, Montreal Protocol, Paris Agreement, Vienna Convention for the Protection of the Ozone Layer, Warsaw Convention etc. NGOs should gain legitimacy from their activities in the field and credibility from activities in the field and credibility form their knowledge of issues and their collection and analysis of information.

In order to intervene in the political decision-making process, it is not enough to be fighting for a just cause. A convincing argument is also needed with evidence to support and focus the debate. NGOs and lobbying firms should collaborate to develop their expertise with think tanks and feed their advocacy work.

4. NGOs in Nepal

The developing countries in general and Nepal in particular have long history of citizen's organizations. They were called "Guthi", "Manka Khalaa", "Mandal", "Pucha", etc.

A famous philosopher Tulsi Mehar Shrestha started the NGO movement in 1923 with inspiration from Mahatma Gandhi. He started Charkha Movement as one of the first local NGOs, Mahaguthi for the empowerment of the poor, helpless, neglected, and destitute and Tulsi Mehar Mahila Ashram in 1979 for voices for Nepalese women and empowerment of women in Nepalese society. These were a pioneer NGOs for the independent, non-profit social service sector in Nepal. Another history maker of Nepalese the civil society movement was Daya Bir Singh Kansakar. He founded a charitable trust with medical dispensary called Paropkar Aushadhalaya and later transformed into the name of Paropkar Samsthan (Paropkar Organization). This organization has been managing an orphanage, ambulance service, maternity hospital and secondary school since its inception. This organization was very important in late 50s and saved several lives during the cholera epidemic in 1948. (Medani Bhandari, 2014)

Nepali NGOs and CSOs were contributing to the global conservation and human rights movement even in the autocratic era prior to 1951. In that period, civil society movements were primarily banned and Nepal was isolated from the rest of the world until 1951 by the autocratic Rana regime. During the Panchayat era (1960-90) some organizations in the service sector were opened through the government. Nepal Red Cross Society was founded in 1963.

The social services National Coordination Council regulated and supervised the NGOs, while the Social Welfare National Coordination Council (SWNCC) handled majority of the funding agencies. The Queen was the chairperson, and the presence of international NGOs (INGOs) in Nepal was regulated form the Royal palace. During this period, it was illegal for anyone to engage in development activities in Nepal without the Government's permission. Under the Panchayat regime, the number of NGOs grew slowly form 10 in 1960 to 37 in 1987. (ADB) Similarly King Birendra established 'The King Mahendra Trust for Nature Conservation' (KMTNC) in 1982 by the legislative Act, mandated as an autonomous, non-profit and non-governmental organization, to work in the field of nature conservation in Nepal.

Two significant changes in regulating on NGOs and funding agencies occurred after the overthrow of the Panchayat regime and the establishment of parliamentary democracy in 1990. First, the SWNCC was recognized into the Social Welfare Council (SWC), which became a government agency under the Ministry for the social sector, chaired by its ministries and other government agencies. Second, funding regulations were changed. For 40 years before the 1991 constitution, foreign assistance to Nepal had to flow through the government's consolidated fund. Since1991, foreign funds flowed directly to NGOs. As a result of these changes, the number of NGOs operating in Nepal has increased dramatically to about 60,000 today. (ADB)

About 11000 NGOs were registered to the social welfare council (SWC) in 2000, which was just a small portion of NGOs. The majorities of NGOS were just registered in district administrative offices and were not aware about SWC or were not ready to register with SWC. Still there is no exact record of NGOs and CBOs, however, there are more than 35,000 NGOs registered only at social welfare council (which is government's autonomous institution which manages social services and funding) in 2005.It is estimated that 46230 NGO's in Nepal are working in various sectors. (Social Welfare Council, 2034-2074 Ashad).

In FY 2072/073, total 260 INGOs working under agreement with SWC which is updated in 2073/03/21. According to SWC (2071,Asadh/July,2014) bilateral donors Australia (5), Austria (1), Belgium (6), Bermuda (1), Brazil (1), Canada (7), China (2), Denmark (5), Finland (3), France (9), Germany (12), India (1), Ireland (2), Italy (10), Japan (11), Luxemburg (1), New Zealand (1), Norway (3), Saudi Arabia (1), South Korea (5), Spain (1), Sweden (2), Switzerland (11), The Netherlands (6), UK (29), USA (53) and multi-lateral donor ADB, EC, FAO, IFAD, ILO, IMF, UNICEF, UNDP, UNESCO, UNHCR, UNIDO, UNFPA, WB, WFP, WHO are all working for and helping Nepal.

Societies Registration Act (SRA, 197),  Registration of Associations Act – Sangh Samstha Ain (amended in 1991), Social Welfare Act (1992) and Local Administration Legislation including DDC, VDC and Municipality Act (1991) and Local Self-Government Act (1999) are the milestone for development of NGOs and CBOs in Nepal.

Societies Registration Act (SRA) (1997): a legal established entity, organized sector, corporate in structure, nonprofit in nature, social-service oriented, voluntary based, autonomous and independent, democratic structure (with open membership); and CBO

Registration of Associations Act – Sangh Samtha Ain (amended in 1991): any seven or more citizens may apply to register an NGO, specifying the name of the institution, its objectives, names and addresses of the management committee members, sources of funding, and office address at all 75 chief district offices. INGOs must obtain permission from the SWC to work in Nepal. Most NGOs are registered under this act, although many are registered under the Company Act as not-for-profit organizations.

Social Welfare Act (1992): This act restructured the SWNCC into the SWC, and assigned the SWC the following functions: promote, facilitate, coordinate, monitor, supervise, and evaluate NGO activities; create the possibility of assistance for establishing, promoting, extending and strengthening NGO activities; function as the coordinating body between the Government of Nepal and NGOs; advise and provide recommendations to the Government in formulating plans, policies, and programs related to social welfare activities and encourage others to do the same; conduct training and undertake studies and research on social welfare issues; carry out physical supervision of the property of NGOs in Nepal; and use national and international NGO assistance effectively. The government introduced a social welfare (first amendment) ordinance in July 2005.

Local Administration Legislation: The District Development Committee (DDC), Village Development Committee (VDC) and Municipality Acts (1991) and the Local Self-Government Act (1999) outline the government's plan to devolve authority to local bodies and allow them to mobilize NGO resources more effectively.

The impact of globalization and signatory party of an international treaty are the basic reason of mushrooming NGOs and CBOs in Nepal. Development in the recent decades is linked with the globalization trend towards greater integration and interdependence between countries and regions of the globe. These growing linkages are often economic and political, but globalization also has important social, environmental and cultural aspects. Nepal has signed or is a signatory to most of the humanitarian and environment related international treatises, conferences, and agreements.

The main activities of NGOs and CBOs includes conducting literacy, post-literacy, and out-of-school education program; publishing learning materials; organizing savings and credit groups; promoting financial intermediation; developing income-generating programs for poor people through skill training; building capacity of local organizations; running seminars for awareness-building among communities; monitoring grassroots organizations and service organizations; providing services; promoting advocacy; mobilizing communities; holding training workshops; and conducting research and evaluation of development programs. NGOs are also working increasingly in the following areas; poverty reduction; agriculture; irrigation; water; sanitation; population and family planning; heritage preservation, protection, and promotion; gender mainstreaming; human rights; peace initiatives; conflict management; and infrastructure and development. (ADB)

5. Conclusions

• Civil society sector has to try to restrain power-oriented government and profit-oriented business sector taking the side of the people in order to protect people's rights and interests and make them self-reliant.
• A value-based democratic association of citizens (outside their families, friends and businesses) entered into voluntarily to advance their interest, ideas and ideologies, shaping the core human values – freedom, justice and solidarity.
• Community-based organizations, national NGOs and International NGOs are the three main groups of NGOs divided by the World Bank and basic categories of NGOs presented by Adam Walker and Laura Williamson in their article are Operational NGOs, Advocacy NGOs and Humanitarian NGOs.
• They are functioning for the prospects of high potentialities, best development actors, powerful pressure group, effective/sustainable service provider, expectation/hope of people-upcoming.
• Globally there are three The Sphere Project, The INGO Accountability Charter and The Istanbul Principles for CSO Development Effectiveness and Its International Framework are prominent frameworks to which the major INGOs and many national CSOs adhere.
• Developing countries NGOs have more space and range of activities than the developed countries as a emergency service provider for welfare oriented development program and empower the marginalized people.
• NGOs select awareness raising, mobilization of public opinion, providing expert advice, lobbying approaches/strategies through "external advocacy" and "internal" advocacy.
• NGOs operating in Nepal have increased dramatically today because the SWNCC was recognized into the Social Welfare Council (SWC) and funds flowed directly to NGOs.
• NGOs registration to the Social Welfare Council (SWC) in 2000 is about 11000 and that number increases to more than 35,000 in 2005. Now, it is estimated that 46230 NGO's in Nepal are working in various sectors.
• In FY 2072/073, in total 260 majority NGOs of Germany Italy, Japan, Switzerland, UK and USA are all working for and helping Nepal under agreement with SWC.
• Societies Registration Act (SRA, 197),  Registration of Associations Act – Sangh Samstha Ain (amended in 1991), Social Welfare Act (1992) and Local Administration Legislation including DDC, VDC and Municipality Act (1991) and Local Self-Government Act (1999) are the milestone for development of NGOs and CBOs in Nepal.
• The impact of globalization and signatory party of an international treaty are the basic reason of mushrooming NGOs and CBOs in Nepal.

References

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