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June 03, 2005
NGOs, Market Forces and Foreign Funding - Part III

The third part of this series looks at the NGO hierarchy, where the NGO derives its power from, who it is accountable to and how these considerations affect social change.

The first of this series is NGOs, Market Forces and Foreign Funding - Part I
The Second of this series is NGOs, Market Forces and Foreign Funding - Part II
NGOs – Their Powers, Their Accountability

Politics of Development
In international politics today, certain governments, various corporations (and their consortiums) as well as certain institutions that represent overlapping interests (World Bank, International Monetary Fund, etc are proactively and aggressively involved in extending their influences over other parts of the world. International politics is made up of complex collaborations and conflicts between these forces. Various religious groups and lobbies have significant influence in these collaborations and conflicts depending on the geography. It is in this landscape that NGOs exist.

Since the 18th century, religious groups have attempted to break up social structures in ‘less developed’ regions and engage in religious conversions under the guise of development . These activities continue in the global south – especially in areas that are non-Christian. With extraordinarily high levels of funding from US and Europe, funding agencies operate through their own organizations or through NGOs, using processes of charity as means of proselytizing. Such activities have torn the social fabric of small communities resulting in local riots, killings and unrest. Often, local militant groups – or sometimes non-militant ones – have risen out of such situations and work against these NGOs and against those that have been converted. This has been the cause of great violence in these areas.

Corporations are interested in how they can have greater access to markets for increased profits or how they can have easier access to raw materials or labor at lower prices thus making themselves more profitable. To they extent that they can change the regulations of a nation such that they are able to produce their own products less expensively, they are interested in lobbying national governments or bringing about social change. For example, to the extent that there are less regulations vis-à-vis rights of workers or compensation, they can get their products made less expensively. To the extent that there are fewer environmental regulations, they do not have to worry about clean up costs and thus make more profits. Corporate lobbies find ways to ‘educate’ governments on how these policies need to be changed. At the same time, corporations are also interested in influencing changes in behavior patterns in societies so that they can encourage people to consume more of their products. One example is the increased sale of water. This is tied to a growing perception that regular water provided by the city is ‘dirty’ or not good enough to drink. It is also connected to an increasing pollution of our water sources – ironically, often by the corporate sector. Similar trends are connected to consumption of shoes, clothes, or food.

While many of these were driven through ads and through lobbying with governments – and even bribery as the Enron saga suggests – the NGOs were used effectively in others. There has been a general change in behavior from a premium on saving to a trend of increasing consumption. Use of pesticide was largely driven by ‘education’ of farmers by certain corporations through government agencies and the NGO sector. Similarly, NGOs are today being influenced by pharmaceutical industries vis-à-vis health practices and use of medicines. Certain states in India, for example, have banned midwives from delivering children. Only registered nurses and health workers can do so. For one, there is a critical absence of trained nurses or health workers. Second, the procedure of delivery is becoming more ‘drug’ intensive. Similarly, where there was a certain tendency to avoid the use of drugs, there is a greater tendency to use drugs for minor ailments – often through education of the NGO sector by corporate lobbies. Similar practices are true in the area of health and nutrition, family planning, among others.

Corporations are not in the business of charity or social empowerment. All they care about is profits; if this was in doubt, the slew of corporate scandals in the last few years has certainly cleared any questions. Some of their efforts with communities is tied to public relations. It has been suggested that a company gets greater return on investment through spending on community programs (to a certain level of spending) that enhances the reputation of the company than through advertisements. Beyond that, corporate interests in funding efforts of social change are thus directly tied to influencing these changes so that they could make more profits. This is generally true of foreign governments as well. Their primary purpose vis-à-vis international relationships is to ensure great dominance over or influence in the affairs of other nations. To the extent that one nation can control the growth or behavior of another, it can stay dominant.

The governments of certain countries thus use NGOs to influence behavior patterns, and even power structures and politics of another region. American and British aid is usually tied to implementation of certain policies and programs. Often these are connected to providing economic incentives to American corporations. For example, equipment bought with USAID money often must be from American companies. Other times, these are connected to certain ‘values’ of the American regime in power. The canceling of aid to NGOs working in the area of family planning is an example. Yet, at other times, these are tied to the NGO providing information about the specific region of activity – information including social unrest, demographic divides in religious following or caste, economic details, among others.

If 90% or NGO funding in India comes from foreign aid, it is clear that a significant portion of ‘social development programs’ are being driven by corporate interests or the interests of other governments. The collaboration between corporations and NGOs threatens a situation that is extremely dangerous. While corporations have always been focused on profits (though, originally, they also had a social responsibility), their attempts to engineer social changes were more obvious, and thus less dangerous. When NGOs become the instruments of social engineering for political or economic interests of funding agencies, corporations have direct (and yet, non-obvious) access to social engineering for corporate interests. It will be a situation similar to the corporate control of media – most people feel that the media they consume is free while it is increasingly been driven by the interests of a small set of corporations. Only, now it will be corporate control of social change. Often, such vested social engineering will be driven without the NGOs – the instrument of the social change – even being aware of this. That is the most dangerous implication of role of NGOs in such a landscape.
- Sanat Mohanty

Related Articles:
Overactive NGOs Attacking MNCs?
The Branding of India
Therefore Alternatives: Questioning Development
Therefore Alternatives: Survival of the Fittest

Posted by collective at June 03, 2005 07:38 PM
Comments

this was an enlightening article.we need more of these artcles in the mainstream media.the question that comes to my mind is do we know of any ngos who are able to sustain themselves without foreign funding?
leena ranade

Posted by: leena ranade on August 27, 2004 01:08 PM

Give me the list of actual donours those are really funding.
BIRESWAR CHATTERJEE
22,PANCHANAN TALA LANE,
BEHALA, KOLKATA-700034
WEST-BENGAL, INDIA.

Posted by: BIRESWAR CHATTERJEE on March 11, 2006 04:54 AM

we submet project grant for adoupt and redlight children education

Posted by: SAMAJ VIKAS on March 31, 2006 02:52 AM

Can i get information on how to get fundings for a nely setup registered NGO under societies Registration Act but not FCRA.

Posted by: Tusar Ranjan Rath on August 28, 2006 10:02 AM

dear sir,
i feel very happy to meet this letter.
we started our services from 1999 by the grace of gad , now in 2001 we gathered one society is called "HELP SOCIETY FOR POOR AND DISABLED.(NGO)
We need your support please remember in your services.
We would like to became a part of in your services.
thanking you sir,
your's truly
lakshumaiah.j
Secretary
H S P D
harijanapalem, Markapur, prakasam (dist), andra pradesh, India Pin 523316

Posted by: lakshumaiah.j on December 15, 2006 12:36 AM

Dear sir,
i feel very happy to meet this letter.
we started our services from 1999 by the grace of gad , we gathered one society is called "DAANA EDUCATIONAL WELFARE SOCIETY(DEWS).(NGO)
We need your support please remember in your services.
We would like to became a part of in your services.
thanking you sir,
your's truly
S. BAPUJI
Prasident
DEWS
MIG-1, PlotNo:508, K.P.H.B.Colony, Kukatpally, Hyderabad-72, Andhra pradesh, South India

Posted by: S. BAPUJI on January 10, 2008 10:31 PM

Sir/Madam

We Kupvi Herbarium Workers Association have visited Ur site and gone through Ur work profile .the work u people are doing is worth appreciating and encouraging to. We at Kupvi Herbarium workers Association are working in different fields like Health, Agriculture, horticulture , IT Education, Research, Rural development, and AIDS etc and are interested in enlarging our work area and thus we want to associate with your organization. We have very effective & talented team and just concluded some research assignments and organic farming awareness programme under HP forest sector reform project. We also have FCRA certificate.

So kindly do consider our request and reply as soon as possible so that we can provide u with as much as possible assistance

Looking forward to work with u.

Jugal Kishore Thakur
Kupvi Herbarium workers Association (NGO)
Regd. under Act XXI, 1860
Krishna bhawan Nr Auckland House
School Gate Lakkar Bazaar Shimla
Himachal Pradesh ( India )
Phone + 91177-3200130, +91-9882036436

Posted by: jugalthakur on February 29, 2008 01:40 AM

sir/madam

most respectfull, i beg to state that i am Rajib Guha, student of master program in rural dev.and mangt from kalyani university. i am a candidate of final semister,so i have and earnest request that i want to do intership in your org. If i get your positive answer about this matter. i will wait for your co-operation.
thanking you

your sincerly
rajib guha

Posted by: Rajib Guha on June 15, 2008 05:13 AM
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