CAPÍTULO VI: CONTROL DE EMOCIONES Y LIDERAZGO
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6.3 PASIÓN CONTRA INDIFERENCIA
Lewis and Kanji (2009) state that the international aid system became a prominent component of international relations after the second world war, mainly based on bilateral and multilateral relationships with governments in developing countries. The multilateral organizations include, the United Nations Organizations (UNO), World Bank (WB) and the European Union (EU) while the bilateral donors include organizations such as UK’s Department for International Development (DfID), the United States Agency for International Development (USAID) and the Swedish International Development Agency (SIDA). These are examples, of what generally make up the international development system. Development aid was in the form of financial assistance and new technology transfer that were usually delivered through large‐scale projects managed by governments. In their study of NGOs and development, Lewis and Kanji (2009), found that there were more than 40 bilateral donor agencies, 26 United Nations agencies, and a further 20 global and regional financial systems. They further state that a number of NGOs secure their financial resources from such global and regional financing systems, while other NGOs often also perform the role of donors to other organizations. In western countries public donations form a considerable part of many NGOs’ sources of income, which
sometimes include emergency appeals during disasters and famine. Generally, there are two major ways through which NGOs can secure funding from official sources:
the first, is through grants given when project proposals are written and funded by donors; and the second mechanism commonly used by USAID, is through
contracting. Through contracting, a bilateral organization or donor agency hires an NGO to implement a project on its behalf.
Accurate figures on international aid flows to NGOs through official channels are not easily available, due to the diversity of funding sources available to NGOs;
however, there is an agreement that official aid to NGOs increased significantly during the late 1980s (Koch et al 2008; Lewis and Kanji 2009). The figures quoted by Lewis and Kanji (2009, citing Van Rooy 1997), based on the statistics gathered by the Development Assistance Committee (DAC) of the OECD, showed that by the mid‐
1990s, over US$1 billion of international aid was channelled through INGOs, with some bilateral donors such as the Netherlands channelling over 10 per cent of their national budget through NGOs. Recent figures by Koch et al (2008) indicate that overall grants to INGOs based in OECD countries amounted to US$ 15 billion
annually in the period between 2005 and 2006, thereby surpassing every individual DAC country with the exception of USA. As for Africa, Allard and Martinez (2008:3, citing Chege 1999) reports that 12 per cent of ODA was being channelled through NGOs by 1994, with trends showing that amounts had continued to increase. Lewis and Kanji (2009) further states that by 1998/99 funding to British NGOs by DfID was estimated to be £182 million. According to Allard and Martinez (2008:3) the
perceived strengths of INGOs are: (a) they are generally being regarded as more legitimate in the judgement of the public; (b) their extensive networks of members and representatives enables them to have access to technical expertise on
immediate issues due their significant experiences drawn from different
environments, or from less served populations; (c) their familiarity with issues of public concern; and (d) that they are often considered as being cost‐effective when compared to both public and private institutions. Hence, despite their drawbacks, which are lack of transparency and rigorous accountability mechanisms, many bilateral and multilateral organizations have continued to channel more official development aid through INGOs (Allard and Martinez 2008; Edwards and Hulme 1995).
The financing environment for INGOs began to change in 1997 amid concerns that despite the increasing size, financing and complexity of the NGO sector,
progress has been less than anticipated, particularly, for low ‐income countries (Edwards and Hulme 2000; Fugere 2001). This was because according to Robert
Fugere (2001:2), the major shift to channelling funds through INGOs was certainly not because of demonstrated success in accomplishing national development, but rather that NGOs held the greater promise in their ability to achieve the
participation of local people in development projects, when compared to
government institutions. Actually, Catherine Agg (2006) argues that, at best, there is no conclusive empirical evidence to prove that NGOs are better than the state in service provisioning. In fact, Edwards and Hulme (1995:6) states that evidence is mounting, showing that NGOs do not perform as effectively as had been widely anticipated in as far as reaching the poorest, cost –effectively, sustainably, flexibly and innovatively (see more details on the weaknesses of NGOs in Section 3.3.2. of this Chapter). However, there are exceptional cases available in the area of service provision, by for example, the Bangladesh Rural Advancement Committee (BRAC), that has justified its comparative cost advantages in the delivery of education and credit provisioning than the government.
Disappointments in the performance by NGOs have provoked critical reflections on what policies would best lead to economic growth and poverty
reduction, especially in low‐income countries. Hence, it was recognised that aid and policy effectiveness should be dependent on the participation of the whole range of development actors including the private sector and civil society organizations (including NGOs), all operating within a strong working collective and established organizational environment (Edwards and Hulme 1995; Klugman 2002).
Within the same frame of thinking, the World Bank’s 1997 World
Development Report (WDR) made four important recommendations, which are as follows; (a) Changes in the financing environment, such as persuading donors to finance and strengthen capabilities of government institutions to improve their effectiveness; b) Propose the relaxing of the neo‐liberal philosophies of “rolling back the state” by donor countries; (c.) Underscore the importance of working through the national governments to reduce poverty by re‐emphasising their core
responsibility of providing basic services to the public; and therefore (d) Appeal to foreign donors to strengthen and build capacities of governments and public
institutions (Agg 2006; World Bank 1997). These changes in the financing climate meant that INGOs were no longer going to enjoy their ‘favoured’ positions
concerning western donor funds as before. Shortly, after the 1997 WDR, but toward the late 1999, the World Bank and the International Monetary Fund (IMF) launched the Poverty Reduction Strategic Policy (PRSP) framework to provide a coherent and coordinated donor support for tackling poverty (Lewis and Kanji 2009).
The PRSP approach was aimed at returning the poverty reduction policies back to the government’s agenda (Agg 2006; Banks et al 2015) and providing an approach for developing a comprehensive home grown development strategy with a focus on poverty reduction that would be country‐owned (Seshemani 2005; IMF 2014). Catherine Agg (2006:7) stresses “the current trends underlying donor policy which are supported by European donors in particular present some interesting challenges to NGO community. The main change since the heyday of NGOs as state‐
supported development actors is the recognition that project based development associated with NGOs should be replaced by support for national governments to implement broader, longer term programmes of poverty reduction.”
Another 1999 report by the OECD through its DAC found that a new approach to development aid of providing more funds directly to recipient
governments was evolving. The report suggested an approach where more financial resources should be channelled through the government’s national budget (Agg 2006 citing OECD 2000:85). Alternatively, the trend of channelling funds directly through local NGOs by countries such as the United Kingdom, United States of America, Australia Norway, and Sweden is also acknowledged. However, the mode of channelling funds directly through local NGOs is causing tensions with the
international NGOs who have usually assumed the role of intermediary or link between the donors and local NGOs.
Thus from 2002, following the United Nations conference on ‘Financing for Development’ held in Monterrey, Mexico, the PRSP, Millennium Development Goals (MDGs) commonly identified as the Monterrey Aid Compact, consolidated the conditionalities and performance‐based aid allocations. The Monterrey Aid Compact
represented the desire by the european and multilateral agencies to harmonize aid policies and lower transactional costs for recipient governments by supporting the budgets of the state (Agg 2006). Conversely, Catherine Agg stresses that parallel to these changes going on at multilateral and state levels, there has been an
accumulation of criticisms by the researchers and INGOs themselves on the policy of giving even larger allocations of public funds to international NGOs in order to finance welfare provisioning (op cit). She further states that, with these developments and changes in the aid context, INGOs are worried about the consequences of losing their roles as intermediaries and subsequently, the major part of their income. However, despite all these policy changes in the aid climate, funds going to NGOs are still enormous (Agg 2006); presumably, some NGOs are doing a lot better than others. Despite their current weaknesses and criticisms, some NGOs are still popularly regarded as the most trusted institutions, in the world based on the Edelman Trust Barometer (Gnärig 2015).
Discussion on the future of NGOs
In analysing the future of NGOs, I would like to use the insights of Burkhard Gnärig’s book entitled ‘The Hedgehog and the Beetle: Disruption and Innovation in the Civil Society Sector.’ Gnärig (2015) states that there is generally, an indication that NGOs have reached their peak and that their decline is inevitable. Clearly, the 1980s and the 1990s period did witness a significant proliferation and growth of NGOs, with some managing billions of funding annually. Their decline has been associated with the emergence of the improved digital communication, such as the internet that has allowed donors based in northern countries to establish direct links with the recipient local NGOs in southern countries at much lower costs. The
Internet has provided donors with a dependable link with the NGOs in southern countries, an important development that has made it much easier for both donors and local NGOs to not only find each other, but to secure as much information for cross‐referencing among others. By foreign donors providing finances directly to SNGOs (local NGOs), the NNGOs are steadily losing their intermediary roles that for most service delivery organizations comprised their major source in income. As a
result, a number of large international NGOs are finding it difficult to sustain their existing levels of growth.
3.7. THE HISTORICAL EVOLUTION OF DEVELOPMENT NGOS IN