CHAPTER II ORIGIN AND GROWTH OF NGOs

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1 CHAPTER II ORIGIN AND GROWTH OF NGOs In the Previous Chapter, The statement of the problem, Objectives of the study, Methodology, Limitation of the Study, Sources of data, Review of literature, Organization of the study etc., are presented. In this chapter it is proposed to present the origin and growth of NGOs. Introduction NGOs include groups and institutions that are entirely or largely independent of government and that have primarily humanitarian or co-operative rather than commercial objectives. They are private agencies in industrial countries that support international development, indigenous groups organized regionally or nationally, and member-groups in villages. NGOs include charitable and religious association that mobilize private funds for development, distribute food and family planning services and promote community organization. They also include independent cooperatives, community associations, water user s societies and women groups. Citizen group s that raise awareness and influence policy are also NGOs. 1 In addition to this, the NGOs also react to any move that is detrimental to their own interest. NGOs play a great role in our world now a days, in many terms, from knowledge sharing to policy making, from advising to advocating, from supporting to naming, and much more. It is interesting to know how, NGOs developed throughout our time, and how they evolved to what they mostly are now. In 50-60's, when NGOs started to take place, they mostly had an education mission, to inform people about certain matters that they are interested at. When we came to 70-80's they became more representative, and wanted to be consulted by companies, thus turned into more professional advisors. In 90's it was NGOs climax, while they were widely recognized, respected and also scared by companies and institutions, and took part in many international agreements and became important partners. 2 The numbers of NGO organizations have grown dramatically, and NGOs have become a powerful player in global politics. 25

2 There is not a certain estimation that how many NGOs exist in the world, but World Bank records say there are between 6,000 to 30,000 NGOs. As you can see the difference is huge, and this shows the vagueness of how many NGOs there are in the world, and actually. what is an NGO? Because there is not an internationally recognized term for NGO. It means different things for different people. 3 Along with the growth in the number of NGOs, the memberships have also been expanding at steady rate. NGOs capacities are mostly by their members, working for their cause, and also their professional staff, who is administrating the NGOs, mostly necessary for big NGOs like Greenpace. 4 Thus NGOs have occupied a prominent place in global governance and decision making. Origin of NGO NGOs became popular in India only in the 1980s, the voluntary sector has an older tradition. Since Independence from the British in 1947, the voluntary sector had a lot of respect in the minds of people - first, because the Father of the Nation Mahatma Gandhi was an active participant; and second because India has always had the tradition of honoring those who have made some sacrifice to help others. 5 The major advantages that NGOs bring to this role include flexibility, ability to innovative, grass-roots orientation, non-profit status, dedication and commitment. In Independent India, the initial role played by the voluntary organizations started by Gandhi and his disciples was to fill in the gaps left by the government in the development process. The volunteers organized handloom weavers in villages to form cooperatives through which they could market their products directly in the cities, and thus get a better price. Similar cooperatives were later set up in areas like marketing of dairy products and fish. In almost all these cases, the volunteers helped in other areas of development - running literacy classes for adults at night, for example in the development process by the government. There are many examples of voluntary organizations of this kind running very successfully in India for the last five decades. Perhaps the most celebrated example would be the treatment centre for leprosy patients run by Babaamte in central India. 6 One of the major strengths of NGOs is their ability to maintain institutional independence and political neutrality. 26

3 In the 1980s, however, the groups who were now, known as NGOs became more specialized, and the voluntary movement was, in a way, fragmented into three major groups. There were those considered the traditional development NGOs, who went into a village or a group of villages and ran literacy programmes, crèches for children and clinics, encouraged farmers to experiment with new crops and livestock breeds that would bring more money. Helped the weavers and other village people s to market their products and so on - in short became almost a part of the community in their chosen area (usually in rural India) and tried to fill all the gaps left. 7 NGOs have shown leadership in promoting sustainable community development. Due to their particular ideology and nature, NGOs are good at reaching out to the poor and remote communities and mobilizing these populations. The second group of NGOs were those who researched a particular subject in depth, and then lobbied with the government or with industry or petitioned the courts for improvements in the lives of the citizens, as far as that particular subject was concerned. A well-known example of an NGO of this type is the Centre for Science and Environment. It was a CSE who picked up that sample of well water and then submitted the results of the chemical analysis to a court because the organization had not been able to get the factory to change its polluting practices in any other way. 8 NGOs are going beyond their primary focus on government and starting to address large corporation. In the third group were those volunteers who saw themselves more as activists than other NGOs did. All NGOs undertook a certain amount of activism to get their points across the bureaucrats, they alerted the media whenever they found something wrong and so on. But this third group of NGOs saw activism as their primary means of reaching their goals, because they did not believe they could get the authorities to move in any other way. Perhaps the bestknown example of an NGO in this category is the Narmada Bachao Andolan (Save Narmada Campaign), an organization that opposed the construction of series of large dams in a large river valley of central India. The members of this NGO believe that large dams were seen water scarcity for the majority of the people in the long run rather than solve the problem, and they oppose the displacement it entails upstream of the dam. When the NBA found that it could not persuade the planners in India to agree to its point of view, the NBA members put up pickets, held demonstrations and tried every other way they could think of to oppose the construction of the first of the big dams. Most of the NBA member went to jail, number of times as a result. Right now, some of them - including 27

4 celebrated novelist Arundhati Roy - face the prospect of being jailed again, because they criticized the Supreme Court of India when the court's decision on dam construction did not go in their favour. There is no strict boundary between these three groups of NGOs - in fact, Baba Amte is now an important member of the Narmada Bachao Andolan. And whatever be the category a particular NGO falls into, all of them play an important role in modern India -they hold the politicians accountable to the people. 9 This has also contributed for the enhanced role of NGOs in development process. By this time the NGOs have also established enough evidence of success stories in their favour. Due to their success in tackling some serious issues there is also a growing argument for scaling up of NGOs activities in the existing as well as new areas too. Nongovernment organizations are a heterogeneous group. A long list of words has developed around the term NGO. GONGOs are government operated NGOs, Which may have been set up by governments to look like NGOs in order to qualify for outside aid or promote the interest of the government in question. TANGO - short for technical assistance NGO. CSO - short for citizen sector organization or citizen society organization. DONGO - Donor organized NGO TNGO - Short for transnational NGO GSO - Grassroots support organization MANGO - Short for Market Advocacy NGO 10 They have a long history of social service in this country. After independence many NGO with the help of international agencies are engaged in the effort of rural development. Concept of NGO The term NGO is applied to a wide range of organizations, which are not established or operated by government NGO s are usually private, non-private-organizations which are run by their members. 28

5 In its broadest sense, policies of economic development encompass three major areas: Governments undertaking to meet broad economic objectives such as price stability, high employment, and sustainable growth. Such efforts include monetary and fiscal policies, regulation of financial institutions, trade, and tax policies. Programs that provide infrastructure and services such as highways, parks, affordable housing, crime prevention, and education. Job creation and retention through specific efforts in Business Finance, Marketing neighborhood development, Workforce development, Small business development, Business retention and expansion, Technology transfer, and Real estate development. This third category is a primary focus of economic development professionals. NGO type can be understood by orientation and level of co-operation. i. NGO type by orientation Charitable orientation Service orientation Participatory orientation Empowering orientation ii. NGO type by level of co-operation Community- Based Organization City Wide Organization National NGOs International NGOs 11 Development cannot be sustainable and long lasting unless people s participation is made central to the development process. Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area. Economic development can also be referred to as the quantitative and qualitative changes in the economy. Such actions can involve multiple areas including development of human capital, critical infrastructure regional competitiveness, environmental 29

6 sustainability, social inclusion, health, safety, literacy, and other initiatives. Economic development differs from economic growth. Whereas economic development is a policy intervention endeavour, which aims at economic and social well-being of people, economic growth is a phenomenon of market productivity and rise in growth development programme. Consequently, as economist Amartyasen points out: Economic growth is one aspect of the process of economic development. Economic development has several definitions from local to global perspectives. Professor of Economics and Public Policy Alan Deardorff at the University of Michigan as part of his International Economics Glossary calls it: "Sustained increase in the economic standard of living of a country's population, normally accomplished by increasing its stocks of physical and human capital and improving its technology."at the local level, the term is brought to a more reachable level. For example the Urban Plan curriculum states: "Economic development - A term generally applied to the expansion of a community s property and sales tax base or the expansion of the number of jobs through office, retail, and industrial development." An interesting Cornell article expands: "Economic development is typically measured in terms of jobs and income, but it also includes improvements in human development, education, health, choice, and environmental sustainability. Business and economic developers in the US are increasingly recognizing the importance of quality of life, which includes, environmental, and recreational amenities, as well as social infrastructure such as child care, in attracting and retaining businesses in a community."in each of these definitions, the focus is on growth of the physical and social sphere of life. As well there is an inherent goal, that such growth achieves a greater "standard of living" or "quality of life." Important to note is that residential development is a separate component. Lastly, the field accepts, one common fact, that what is there is not providing what that community needs. 12 In recent times, the government had a dialogue with a section of activities before drafting the new policy. In government structure: Economic development (ED) is seen both as a policy and a profession. In the United States, most local governments have an economic development authority that oversees and guides enterprise in states and cities. Many states have multiple layers of such groups. For example, a neighbour might have its own non-profit to help small businesses establish storefronts. The municipality's economic development department would help major corporations locate into city 30

7 limits. Most cities have metropolitan regions, and such regional authorities can promote entire areas of a state for new companies. The state's workforce and employment department would then overlap all of these, tracking job growth and ensuring Federal funds may be available for job programs and assistance. ED many times is an expected part of government function because cities and regions are constantly competing for jobs which no longer need a specific location. 13 The interest of the state in NGO has not only increased but undergone a qualitative change. As government policy: As policy, ED is frequently noted in the news as a function of a country's government to improve the welfare of its citizens by providing and literally building opportunities. The skyscrapers and dams being built in China's coastal cities and rural west have become a symbol of ED. The term started for American cities in the advent of suburbia in the 1970s but had not exactly entered American politics until the economic boon of the 1990s. ED has traditionally been applied to major projects such as a new industrial zone or enclosed shopping mall as well as waterworks projects and freeway expansion. However suburbia by 1990s began to realize that the capitalist micro-economies of downtowns were not going to remake themselves and the term gained full footing to ensure stability in new cities by carefully planning and plotting the location of potential retail, services, and office. ED has also become familiar with medical and hospitality industries, seeing hospital campuses and hotels as valuable as an office tower. The main goal with ED as government policy is that jobs must grow in the end, much like how private companies ultimately wish to gain profits from new investment. 14 The government is now seeking NGOs direct and active movement. As a profession : As a profession, ED Directors and Business Specialists work with business owners and much like courting deals in the private sector, will try to provide opportunities to entrepreneurs. These may include qualifying special new business loans, offering tax breaks on a piece of land, or ensuring planning officials can compromise to approve a project. While ED personnel are generally "on the ground," they also do extensive research and quantitative analysis as to potential sites which may accommodate future employers. Regularly they perform many urban planning and community development functions such as identifying properly zoned areas for commercial or industrial and the accompanying codes and variances that could suit a business model. With these goals, ED staff may also influence planning decisions and encourage the establishment of Enterprise Tax Zones which specifically 31

8 encourage businesses to locate in a particular geographic area. 15 NGOs are the only option left to provide an alternative frame work for development to reach the most vulnerable sections at the lowest of the society. NATURE OF NGOs The nature of voluntary agencies have undergone a noticeable change in recent times. In the past such agencies adopted a religion oriented mass approach in an informal atmosphere, stressing on programmes of education, medicine and social reforms in their action plans. The services provided by its members were honorary and free of cost to the beneficiaries. At present, the agencies adopt nationalism-oriented group approach in a formal atmosphere, the objective being socio-economic development of the specific target group through paid, whole-time and formally trained workers. They raise funds from the masses, take interest in governmental / international aid and collect token fees for services rendered. The nature, structure and functions of these groups present a great deal of overlap as well as diversity, depending upon their origin, size, geographic location and even political ideology. 16 The activities of different NGOs also not uniform and vary from one NGO to the other. Their activities range from social cultural economic and scientific domains. They are engaged in education, health care, loan schemes for providing self employment and micro credit. CHARACTERISTICS OF NGOs Based on the opinion of different author s like S.R. Maheshwari (1987), Michael Banton (1968), David L. Sills (1968), William Beveridge (1949), D. Paul Chowdhary (1971), Mancher (1999) etc., the following can be taken as the characteristics of a voluntary agency. 1. It is a group organized by some by person/ persons on their own initiatives to pursue common interest of its members It is initiated and governed by their own member s democratic principles It is not subjected to any external control, government or otherwise. 4. Its activities are organized on non-profit basis Its membership is purely optional, members may join or resign at their own will It is spontaneous in nature. 32

9 7. It is a combination of different people joined together with shared values of concern for some specific purpose It acts as an intermediary between people and the state. 9. It is registered under an appropriate act to give a corporate status Its staff may be either paid or unpaid or partially paid. (If paid it will be a subsistence wages opposed to the market wage) The funds may be received thorough contributions, donations, government and foreign aid. 12. The organized sector of the economy such as the business establishment / companies, trade unions will not come under the purview of voluntary agencies. 24 The NGOs also initiated steps to organize training programmes for income generation and capacity building activities for the grass roots workers and target groups to import new methods. The empowerment activities enabled the women members to acquire decision making abilities and leadership qualities. DEFINITION OF NGO A non-governmental organization (NGO) is any non-profit, voluntary citizen s group which is organized on a local, national or international level. Task-oriented and driven by people with a common interest, NGOs perform a variety of service and humanitarian functions, bring citizen concerns to Governments, advocate and monitor policies and encourage political participation through provision of information. Some are organized around specific issues, such as human rights, environment or health. They provide analysis and expertise, serve as early warning mechanism and help to monitor and implement international agreements. Their relationship with offices and agencies of the United Nations system differs depending on their goals, their venue and the mandate of a particular institution. 25 Thus the NGOs have a strong organization network in organizing the activities as well as mobilizing the resources to strengthen the grassroots units. A non government organization (NGO) is a legally constituted organization created by private persons or organizations with no participation or representation of any government. In the cases in which NGOs are funded totally or partially by governments, the NGO maintains 33

10 its non government status in so far as it excludes government representatives from membership in the organization. The world bank defines NGOs as private organization that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services, or undertake community development. A World Bank key document, working with NGOs adds, in wider usage, the term NGOs can be applied to any non-profit organization which is independent from government. NGOs are typically value based organization, which depend, in whole or in part, on charitable donations and voluntary service. 26 NGOs are better qualified then government organizations to successful implement development programmes and projects and that their inclusion in the policy process. In the Handbook of NGO s, Nabhi (2003) defined Non Governmental Organization, "NGOs include groups and institutions that are entirely or largely independent of government and that have primarily humanitarian or cooperatives rather than commercial objectives. They are private agencies in industrial countries that support international development; indigenous groups organized regionally or nationally, member groups in villages. NGO include charitable and religious associations that mobilize private funds for development, distribute food and family planning services and promote community organization. They also include independent cooperatives; community associations, water-user societies, women's groups associations. 27 NGOs play a vital role in the development. The role of the state in the planning process, political parties participation, active participation of grassroots organization, role of donor agencies etc., are important for ensuring people participation and socio economic development of the people. The United Nations nomenclature of an NGO refers to any international organization not established by inter-governmental agreement including organizations, which accept members designated by Governmental authorities, provided that such membership does not interfere with the organizations free expression of views. NGOs are different from the market induced organizations and other organizations of the state. They are formalized organizations beyond the market and the state, receiving their resources partly from voluntary contributions of the society. The term NGO in India has been used to denote a wide spectrum of organizations which may be non-governmental, quasi or informal, non-profit or profit oriented bodies, with a legal status and registered under Special Acts (like Companies Act, Societies Registration 34

11 Act, etc.) To be eligible for funding from various agencies, it should have legal status (i.e. legal personality). In the Indian context Chowdhary (1971) defined a voluntary organization as an organization which, whether its workers are paid or unpaid, is initiated and governed by its own members without external control. Smith and Freedman (1972) defined voluntary organization as "Structured, formally organized. relatively permanent, secondary groupings as opposed to less structured, informal, ephemeral or primary groupings, identified by presence of offices filled through some established procedures, periodic, scheduled meetings, qualifying criteria for membership, and some formalized division and specialization of labour. Smith and Freedman (1972) defined voluntary organization as "Structured, formally organized. relatively permanent, secondary groupings as opposed to less structured, informal, ephemeral or primary groupings, identified by presence of offices filled through some established procedures, periodic, scheduled meetings, qualifying criteria for membership, and some formalized division and specialization of labour. According to Sundaram (1986) a voluntary organization, properly speaking, is an organization which, whether its workers are paid or unpaid, is initiated and governed by its own members without external control. David Sills (1987), a sociologist defined voluntary organization as "a group of persons organized on the basis of voluntary membership without state control, for the furtherance of some common interests of its members." Michel Banton, an anthropologist, characterized it as a group organized for the pursuit of one interest or of several interests in common. Usually, it is contrasted with voluntary groups, castes, social classes and communities. Prabhakaran (1992) defined a voluntary organization as an agency, organized or unorganized, structured or unstructured, which works for the welfare of a community in any given area of its own volition. It may be just an individual or a collection of individuals or it may have a more formal structure. 35

12 Choudhary (2000) defined the term Voluntary means that people out of their own volition and their free will come together around a particular problem or community head, define its contours, find solutions or remedies, prepare plans, organize themselves, develop funds, monitor and evaluate the plans and programmes may be wholly internal or supplemented by outside agencies. The touchstone for such voluntary ventures is people's initiative without outside control but only assistance or guidance based on needs perceptions on terms and conditions and the procedures of grant giving, people's action or initiative may be promoted or weakened. Thus the concept of voluntarism may be termed as an informal creed or system with infrastructure, methods and procedures laid down by the people in an indigenous manner to tackle their problems. The initiative taken spontaneously by an informal gathering or a group may ultimately result in an organization called voluntary agency or in today's generation a non governmental organization. The spirit of voluntary initiative or action can be maintained as long as, the structure of an NGO is small, its chain of commands and communication are without outside dictates such as through the condition of grants. Public cooperation is somewhat broader in terms, which become operational through an organized network of voluntary agencies and sometimes-local bodies like Panchayats (Choudhary, 2000). 28 So the term NGO is broad based and under its umbrella it covers many agencies functioning in different fields with variety of activities. Classification of NGOs in India I. Classification of the NGOs in India into 3 major categories 1. Funding NGOs Funding NGOs have their central offices in the western countries for effective outreach they have branched out in the third world countries. In the early 1980s the need for women s development integral part of development was discussed and thus started to implement women s programmes with the help of existing male state. In NGOs like Avon foundation, the male staff were unable to promote any in the lives of women in the society, therefore they set up an additional desk and appointed a woman project office to monitor women s development activities separately. This was a similar situation in most of the funding NGOs, to name a few: Ford Foundation, Action Adi. The objective behind creating a post of women s project official that, with some development experience she would be better able to tackle gender issues. The perception of 36

13 women s development is just a separate and added sector to development in general, which marginalized the gender issue form serious development efforts. 29 NGOs central goal is empowering the powerless women, with a view to help them to participate in the socio economic development. 2. Support NGOs There are a few support NGOs in India who provide support services for the organization working at the grassroots level in the form of training the staff and consultation service to plan and implement development programmes. A few groups are involved in research and documentation services related to developmental issues as well as in initiation groups and networking. Some have emerged from grassroots experiences. 30 NGOs often are successful intermediaries between actors in the development area and building bridges between people. 3. Grassroots NGOs Thousand of NGOs all over India work among the rural and urban poor. There are small and large organizations in terms of structure and target area/ population covered. The objectives and ideologies are different from group to group. They translate policies into practice and implement programmes at grassroots level. I would further categorize the grassroots organizations into three types: (a) male headed organizations, (b) couple headed organizations and (s) female headed organizations. The structure of all the three categories tend to be hierarchical in nature, with top down decisions making process. Other than female headed organizations, the leadership positions are held predominantly by men. In female and couple headed (husband is the Director and wife is Associate or Assistant Director of the same NGO) organizations also, the perception of women s problems, of their double role along with their reproductive functions, is never understood properly in evaluation women staff s efficiency and work output in the organizations. The organizations do not take into consideration the social constraints imposed on women from childhood which may be the reason for the low productivity of their work

14 Many NGOs are devoted to the cause of women welfare and make people innovative, participatory and try to make them independent. They also can help the government in forming policies for women because of their intimate knowledge of the local situation. II. Classifications of NGOs (World Bank) The World Bank divides them into Operational and Advocacy: 1. Operational NGOs: Operational NGOs seek to "achieve small scale change directly through projects. They mobilize financial resources, materials and volunteers to create localized programmes in the field. They hold large scale fund raising events, apply to governments and organizations for grants and contracts in order to raise money for projects. They often operate in a hierarchical structure; with a main headquarter that is staffed by professionals who plan projects, create budgets, keep accounts, report, and communicate with operational fieldworkers who work directly on projects operational NGOs deal with a wide range of issues, but are most often associated with the delivery of services and welfare, emergency relief and environmental issues. Operational NGOs can be further categorized, one frequently used categorization is the division into relief-oriented versus development-oriented organizations, they can also be classified according to their service delivery or participation; or whether they are religious or secular, and whether they are more public or private-oriented. Operational NGOs can be community-based, national or international. The defining activity of operational NGOs is implementing projects. 2. Campaigning NGOs: Campaigning NGOs seek to "achieve large scale change promoted indirectly through influence of the political system. Campaigning NGOs need an efficient and effective group of professional members who are able to keep supporters informed, and motivated. They must plan and host demonstrations and events that will keep their cause in the media. They must maintain a large informed network of supporters who can be mobilized for events to attract media attention and influence policy changes. The defining activity of campaigning NGOs is holding demonstrations. Campaigning NGOs often deal with issues relating to human rights, women's rights, children's rights. The 38

15 primary purpose of an Advocacy NGO is to defend or promote a specific cause. As opposed to operational project management, these organizations typically try to raise awareness, acceptance and knowledge by lobbying, press work and activist events. Operational and Campaigning NGOs It is common for NGOs to make use of both activities. Many times, operational NGOs will use campaigning techniques if they continually face the same issues in the field that could be remedied through policy changes. At the same time, campaigning NGOs, like human rights organizations often have programmes that, assist the individual victims they are trying to help through their advocacy work. 32 In most of the developing countries people s participation occupies a central place in their development thinking and practice and is widely recognized as an important variable for rural development. Major sectors of activities of NGOs Taking an overview of the operation of various NGOs across the country, the following major activities can be mentioned: 1. Social awareness 2. Economic development 3. Environmental issues 4. Health care services 5. Non-formal education 6. Social forestry 7. Non-conventional energy sources 8. Water management 9. Vocational training 10. Dissemination of technology 11. Income generating activities 12. Legal AID 13. Women development 14. Child issues 15. Helping aged/disabled. 39

16 Sub classification of activities I. Education: A. Non-formal adult education B. Formal education for school dropouts. II. Child development: A. Nutrition programmes B. Creche programme C. Integrated activities under balwadi programme D. Holiday camps for children. III. Women development: A. Women awareness programme B. Homes for girls/destitutes C. Eradication of social evils (dowry/child marriage / alcoholism/prostitution/drug abuse/smoking/ superstitions, etc.) D. Income generating activities. IV. Health: A. Vaccination programme B. Blood camps C. Awareness programme on family planning, AIDS, etc. D. Eye camps E. Free medical aid F. Nutrition programme G. Drinking water schemes. V. Environment: A. Ecology and environment awareness B. Environment conservation C. Social forestry- Tree plantation, horticulture, waste land development. VI.Non-conventional energy sources: A. Bio gas technology promotion B. Construction of improved chullahs. VII. Rural sanitation programme: A. Construction of low cost latrines B. Sanitation awareness. VIII. Rural housing: 40

17 A. Promotion of low cost houses through technology B. Group housing. IX. Animal husbandry: A. Dairy/goat rearing/sheep rearing/rabbit rearing/ sericulture. X. Watershed management: A. Irrigation tanks B. Rainwater harvesting. XI. Promotion of local crafts: A. Handicrafts, pottery, drafting, etc. XII. Micro finance: A. Formation of credit/saving group B. Self-help groups (SHGs) C. Financing SHGs. XIII. Computer training: A. Awareness programme B. Training programmes. XIV. Legal aid: A. Free legal consultation B. Free professional services. XV. Vocational training: A. Tailoring/toy/making, etc. B. Skill development programmes for artisans. XVI.Agriculture supportive programmes A. Cold storage facilities B. Godown facilities. XVII. Rehabilitation programmes A. Refugee rehabilitation B. Victim of natural disasters. C. Socially and Physically Challenged XVIII. Marketing of produce: A. Training programmes B. Arranging linkages. XIX. Family counseling XX. NGO consultancy 33 41

18 The NGOs in addition to their welfare activities, are also concentrating on organizing the rural poor for development. They have been recognized as central actors in anti-poverty policies and programmes. History of NGO Activity in India India has a long history of civil society based on the concepts of daana (giving) and seva (service). Voluntary organizations - organizations that are voluntary in spirit and without profit-making objectives-were active in cultural promotion, education, health, and natural disaster relief as early as the medieval era. They proliferated during British rule, working to improve social welfare and literacy and pursuing relief projects. During the second half of the19 th century, nationalist consciousness spread across India and self-help emerged as the primary focus of sociopolitical movements. Numerous organizations were established during this period, including the Friend-in-Need Society (1858), PrathanaSamaj (1864), Satya ShodhanSamaj (1873), AryaSamaj (1875), the National Council for Women in India (1875), and the Indian National Conference (1887). 34 NGOs are by nature very flexible and play an important role in development of our economy. The Societies Registration Act (SRA) was approved in 1860 to confirm the legal status of the growing body of non government organizations (NGOs). The SRA continues to be relevant legislation for NGOs in India, although most state governments have enacted amendments to the original version. Christian missionaries were active in India at those time directed their efforts toward reducing poverty and constructing hospitals, schools, roads, and other infrastructure. Meanwhile, NGOs focused their efforts on education, health, relief, and social welfare. A firm foundation for secular voluntary action in India was not laid until the servants of India, a secular NGO, was established in Mahatma Gandhi's return to India in 1916 shifted the focus of development activities to economic self-sufficiency. His Swadeshi movement, which advocated economic selfsufficiency through small-scale local production, swept through the country. Gandhi identified the root of India's problem as the poverty of the rural masses and held that the only 42

19 way to bring the nation to prosperity was to develop the villages self-reliance based on locally available resources. He also believed that voluntary action, decentralized to gram panchayats (village councils), was the ideal way to stimulate India's development. Gandhi rated civil society in India by stressing that political freedom must be accompanied by social responsibility. 35 NGOs can ensure the quality of services they provided for development of specially for the need of the poor. After independence, the Government of India increased its presence in social welfare and development but recognized the potential for civil society to supplement and complement its efforts. The First Five-Year Plan stated, "Any plan for social and economic regeneration should take into account the services rendered by these agencies and the state should give them maximum cooperation in strengthening their efforts. The Central Social Welfare Board was established in 1953 to promote social welfare activities and support people's participation programs through NGOs. This additional funding and recognition led to a growing body of professional NGOs. The Government of India decentralized development activities throughout the 1950s. The establishment of the National Community Development Program and the National Extension Service were early steps in this direction. Further decentralization was achieved with the introduction of the three-tier Panchayat Raj system in Many farmers unions and agricultural cooperatives were founded during this time, and networking became more common place in civil society. In 1958, the Association for Voluntary Agencies for Rural Development (AVARD) was founded as an International Business or Banking Agreement of major voluntary agencies. 36 The strengths of NGOs, particularly those operating at the field level is their ability to form close linkages to local communities. International NGOs entered India in significant numbers to provide drought relief during two consecutive agricultural seasons, and Many of them established permanent local operations thereafter. Moreover, foreign funds began flowing to domestic NGOs in India, changing the character of civil society once more. During the 1970s the government pursued a "minimum needs" program, focusing on the basic needs to improving the quality of life for the rural poor, such as education, electrical power and health. Several governmental development agencies were established around this time, such as the People's Action for Development of India. Foreign-trained Indians entered civil society in greater numbers, leading to professionalization of the sector. 43

20 India witnessed a rapid increase in diversification of the NGO sector as a response to the national political scenario and increasing concern about poverty and marginalization. Both welfare and empowerment-oriented organizations emerged during this period, and development, civil liberties, education, environment, health, and livelihood all became the focus of attention. With community participation as a defined component in a number of social sector projects during 1970s and 1980s, NGOs began to be formally recognized as development partners of the state. Their work was increasingly characterized by grassroots interventions, advocacy at various levels, and mobilization of the marginalized to protect their rights. The process of structural adjustment began in the early 1990s and more recent approach of bilateral and international donors channeling funds directly through the government, NGO networks, and large corporate NGOs have somewhat pushed people s organizations into the background. Small spontaneous initiatives at the community level, as a response to social and economic exploitations at the community level, are no longer the hallmark of the NGO sector. 37 Partnerships between all groups should be achieved without ignoring each other strengths but make use of each others comparative advantage. History of International NGOs International Non-Governmental Organizations have a history dating back to at least It has been estimated that by 1914 there were 1,083 NGOs. International NGOs were important in the anti-slavery movement and the movement for women's right to vote, and reached a peak at the time of the World Disarmament Conference. However, the phrase "Non-Governmental Organization" only came into popular use with the establishment of the United Nations Organization in 1945 with provisions in Article 71 of chapter 10 of the United Nations Charter for a consultative role for organizations, which are neither governments nor member state. The definition of "International NGO" (INGO) is first given in resolution 288 (X) of ECOSOC on February 27, 1950: it is defined as "any international organization that is not founded by an international treaty". The vital role of NGOs and other "major groups" in sustainable development was recognized in chapter of agenda 21, leading to intense arrangements for a consultative relationship between the United Nations and nongovernmental organizations. 38 NGOs have been able to make their presence from the local to the national level and now at the international level also. 44

21 Rapid development of the non-governmental sector occurred in western countries as a result of the process of restructuring of the welfare state. Further globalization of that process occurred after the fall of the communist system and was an important part of the Washington opinion. Globalization during the 20th century gave rise to the importance of NGOs. Many problems could not be solved within a nation. International treaties and International organizations such as the World Trade Organization were perceived as being too centered on the interests of capitalist enterprises. Some argued that in an attempt to counter balance this trend, NGOs have developed to emphasize humanitarian issues, developmental aid and sustainable development. A prominent example of this is the World Social Forum, which is a rival convention to the World Economic Forum held annually in January in Davos, Switzerland. The Fifth World Social Forum in Porto Alegre, Brazil, in January 2005 was attended by representatives from more than 1,000 NGOs. Some have argued that in forums like these, NGOs take the place of what should belong to popular movements of the poor. 39 Development practitioners, government officials and foreign donors consider that, NGO by the virtue of being small scale, flexible, innovative and participator, are more successful in reaching the poor. Others argue that NGOs are often commanding in nature, that they sometimes operate in a racialised manner in third world countries, and that they fulfill a similar function to that of the clergy during the high colonial era. The philosopher Peter Hallward argues that they are an aristocratic form of politics. Whatever the case, NGO transnational networking is now extensive. 40 They have their roots in the people and can respond to the needs and aspirations of the community very effectively. Over the past several decades, NGOs have become major players in the field of International development. Since the mid-1970s, the NGO sector in both developed and developing countries has experienced exponential growth. From 1970 to 1985 total development aid disbursed by International NGO s increased ten-fold. In 1992 International NGOs channeled over $7.6 billion of aid to developing countries. It is now estimated that over 15 percent of total overseas development aid is channeled through NGOs. While statistics about global numbers of NGOs are notoriously incomplete, it is currently estimated that there is somewhere between 6,000 and 30,000 national NGOs in 45

22 developing countries. 41 NGO sector has been recognized as a crucial partner recognizing the strengths of the NGOs in organizing the community and the potential in saving. NGOs IN INDIA Indian NGOs.com estimates that there would be around 1.5 million NGOs working in India. All development effort including population stabilization cannot make much headway unless there is radical improvement in the status of women. The involvement of NGOs and the formation of Self Help Groups (SHGs) is necessary for the social and economic empowerment of disadvantaged women. NGOs and SHGs can be instrument of social empowerment through awareness generation and convergence of delivery systems. The collaboration of NGOs, Panchayat and SHGs at the grassroots level could become very effective for implementation of programmes for issues relating to women, children and adolescents. As per data available with the planning commission(2008), there are 12,265 NGOs in the country of which 91% are involved in social sector activities % in Rural Development (RD)17% in Human Resources Development (HRD), 10.15% Social Justice & Empowerment (SJ & E), 6.2% in Health &Family Welfare (H & FW), and 4.8% in Youth Affairs & Sports (YA &S). Figure: 2.1 Sector wise concentration of NGOs 60 Sector-wiste Concentration of NGOs (in percentge) RD 2.HRD 3.SJ & E 4.H & FW 5.YA & S 46

23 About 25% NGOs are working in the Southern States of which 10.4% in Andhra Pradesh, 4.15% in Karnataka, 2.84% in Kerala and 7.85% in Tamil Nadu. About 36% NGOs are working in the demographically weak states including newly formed States % in U.P., 4.5% in M.P., 9.33% in Bihar, 2.9% in Rajasthan, 1.7% in Jharkhand, 1.3% in Uttaranchal and 0.35% in Chhattisgarh. About 30% NGOs are working in other major states West Bengal (9.7%), Orissa (6.78%), Maharashtra (4.95%), Delhi (4.08%), Gujarat (2.59%), Haryana (1.5%) and Punjab (0.36%). 7.35% NGOs are working in North Eastern sates- Assam (2.1%), Manipur (2.9%), Meghalaya (0.18%), Mizoram (0.28%), Nagaland (0.47%), Arunachal Pradesh (0.2%) and Tripura (0.37%). 42 The success of the rural development depends upon the active participation and willing co-operation of the rural people through self help organizations and NGOs. NGOs Today Today, about 1.5 million NGOs work in India i.e.(non-profit, Voluntary Citizens Groups organized on a local, National, or International Level). This includes Temples, Churches, Mosques, Gurudwaras (Sikh place of workshop), Sports Associations, Hospitals, Educational Institutions, and Ganeshotsav Mandals (temporary structures set up to house Ganesh festival celebrations). Most NGOs in India are small and dependent on volunteers. Participatory Research in Asia (PRIA), 73.4% have one or no paid staff although across the country, more than 19 million persons work as volunteers or paid staff at an NGO. The PRIA survey also reveals that 26.5% of NGOs are engaged in religious activities, while 21.3% work in the area of community and social service. About one in five NGOs works in education, while 17.9% are active in the fields of sports and culture. Only 6.6% work in the health sector. The Indian Centre for Philanthropy, the Center for Advancement of Philanthropy, Charities Aid Foundation (India), National Foundation for India, and the Society for Service to Voluntary Organizations are among the nonprofit organizations that provide information resources, services, and networking opportunities to NGOs. 47

24 The credibility alliance is an initiative by a group of NGOs committed to enhancing accountability and transparency in the voluntary sector through good governance. Credibility Alliance was registered in May 2004 as an independent, not-for-profit organization after 2 years of extensive consultation with thousands of NGOs in India. Credibility Alliance operates as a standards-setting body, and aims to build trust among all the stakeholders. Its members include nearly 600 organizations. 43 Many of the NGOs have started work in areas, which were ignored by the process of national development planning. Table No. 2.1 Region wise Registered NGOs, in Andhra Pradesh & Telangana State as on S. No. Region No. of NGOs % Rayalseema Region 1 Chittor Kadapa Kurnool Ananthapur 394 Total 1, Coastal Andhra 5 Vizianagaram 79 6 East Godavari 34 7 Prakasham Nellore 89 9 Krishna Srikakulam West Godavari Visakhapatnam Guntur 354 Total 1, Telangana Region 14 Mahbubnagar Medak Nizamabad Khammam Ranga Reddy Warangal Hyderabad Adilabad Karimnagar Nalgonda 98 Total 1, Grand Total 3,

25 Sources: 1. AMR-Andhra Pradesh Academy of Rural Development, Rajendra Nagar, Hyderabad, Vol.1 & 2, (2009), Centre for Women and Child Development Social Welfare ISSN : , Vol. 52, No. 12, March 2006, Andhra- Pradesh Social Welfare Board. Journal Pg. No Directorate of Economic and Statistics, Khairthabad, Hyderabad, (2008), Non- Profit Institutions in A.P, Pg,. No Information as per data base as on November Table No. 2.2 Year wise Registered NGOs, in Andhra Pradesh & Telangana State as on S. No Year No. of NGOs

26 (Nov.) 80 Total 3,565 Sources: 1. AMR Andhra Pradesh Academy of Rural Development, Rajendara Nagar, Hyderabad, Vol. 1 & 2, (2009), Centre for Women and Child Development Social Welfare ISSN: , Vol. 52, No. 12, March 2006, Andhra Pradesh, Social Welfare Board. Journal Pg. No Directorate of Economic and Statistics, Khairtabad, Hyderabad, (2008), Non-Profit Institutions in A.P, Pg. No Information as per data base as on November Table No. 2.3 Region wise registered NGOs for Women empowerment, in Andhra Pradesh& Telangana State as on S. No. Region No. of NGOs for women empowerment % Rayalseema Region 1 Chittor Kadapa 58 3 Kurnool 41 4 Ananthapur 69 Total Coastal Andhra 5 Vizianagaram 37 6 East Godavari 51 7 Prakasham 71 8 Nellore 82 50

27 9 Krishna Srikakulam West Godavari Visakhapatnam Guntur 46 Total Telangana Region 14 Mahbubnagar Medak Nizamabad Khammam Ranga Reddy Warangal Hyderabad Adilabad Karimnagar Nalgonda 56 Total Grand Total Sources: 1. AMR Andhra Pradesh Academy of Rural Development, Rajendra Nagar, Hyderabad, Vol. 1 & 2, (2009).Centre for Women and Child Development Social Welfare ISSN: , Vol.- 52, No. 12, March 2006, Andhra- Pradesh Social Welfare Board. Journal Pg. No Directorate of Economic and Statistics, Khairthabad, Hyderabad, (2008), Non Profit Institutions in A.P, Pg. No Information as per data base as on November FORMATION & REGISTRATION OF NGO. Any person competent to contract, be an individual, a body of individuals or an artificial person such as an association of persons, an institution, a limited company, a Hindu undivided family through its karta, can form an NGO. NGOs are essentially of charitable or religious nature, and can be constructed by any person without any distinction of caste or creed. 51

28 The NGO may be formed and registered as: I. Trust: As a public charitable trust. A public trust, whether relating to movable or immovable property, may be created by mere delivery of possession with a direction that the property is to be held under trust. However, a written instrument of trust signed by the author and registered, is always desirable. 44 NGOs have always been looked upon as saviors of democratic process as they represent the true fire of all democratic spirit. II. Society: Section 20 of the Societies Registration Act lays down that charitable society and societies established for the promotion of science, literature or the fine arts may be registered under that Act. A society registered under the said Act is a legal entity apart from its members and under Section 6 of the said Act, it can sue or be sued in the name of its President, Chairman, Secretary or members of the governing body or Trustees. In Secretary of State India v. Radha Swami Satsangh it was held by the Bombay High Court that the registration of a charity under the Societies Registration Act, 1860 was a prima facie evidence of valid dedication of property for charitable purposes. 45 Society can be described as an association of persons united together by mutual consent to act jointly for same common purpose. III. Company: An association may be registered under Section 25 of the Companies Act, 1956 if the Central Government is satisfied that it is about to be formed as a limited company for promoting commerce, art, science, religion, charity or any other useful object and it intends to apply its profits, if any, or other income in promoting its objects and to prohibit the payment of any dividend to its members. In such cases the Central Government may be license direct that the association may be registered as a company with limited liability without the addition to its name of the word Limited or the words Private Limited. 46 NGO can be formed by minimum seven or more persons, eligible to enter into a contract. Central & State Laws applicable to NGOs 1. Indian Trust Act, Charitable & Religious Trusts Act, Wakf Act, Sikh Gurdwara Act, Indian Trustees Act, Religious Endowment Act, Trustees & Mortgagees Powers Act,

29 8. Companies Act, 1956, for trusts registered as companies u/s 25 of the Act. 9. Society Registration Act, 1860 Allied (Joined) Laws: 1. Transfer of Property Act, Indian Registration Act, Income Tax Act, 1961 Foreign Contribution (Regulation) Act, Growth of NGO Sector in India In India total number of registered NGOs is 91,74,420. Table No. 2.4 Distribution of NGOs by Location in India, as on S. No. Location Total % 1 Rural 18,63, Urban 73,10, Total 91,74, Sources: of Economics and Statistics as on

30 Figure 2.2 Distribution of NGOs by location in India, as on ,63,427 73,10,993 91,74,420 % Rural Urban Total The distribution of NGOs by location in India, (rural-urban) depicted in Figure 2.2 indicates that 18,63,427(26.3%)are total registered NGOs in rural areas, and 73,10,993 (75.6%) in urban areas. Therefore the total registered NGOs are 91,74,420. Distribution of NGOs activities in India. The distribution of NGOs by activities viz. i) culture and recreation, ii) education and research, iii) health, iv) women empowerment environment, vi) development and housing, vii) law, advocacy and politics, viii) philanthropic intermediaries and voluntarism promotion, ix) international activities, x) religion, xi) business and professional associations, unions and xii) not elsewhere classified is exhibited in table no

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