UNIVERSITY OF NAIROBI

MASTER OF PROJECT PLANNING AND MANAGEMENT

PROJECT FINANCING

Rise and Role of Non- Governmental Organizations in Sustainable

Development

Group One members

DUNCAN MUTISYA KAMAU L50/5112/2017

ELIZABETH SYONTHI NGORU L50/12691/2018

MERCY CHEPKOSGEI KIPROP L50/11918/2018

JOSEPH NYAGA NDWIGA L50/13605/2018

CALVINCE SONYE L50/12403/2018

ABDINASIR MOHAMED ALI L50/14292/2018

AUGUST 21, 2019

Introduction......................................................................................................................................1

Rise of Non- Governmental Organizations in Sustainable Development.......................................2

The rising prominence of NGOs......................................................................................................7

NGOs and the state..........................................................................................................................7

Role of Non- Governmental Organizations in Sustainable Development.......................................9

Sustainability.................................................................................................................................13

Conclusion.....................................................................................................................................15

References......................................................................................................................................16
Rise and Role of Non- Governmental Organizations in Sustainable Development

Introduction

How can the organizations engaging with the NGO community, ensure sustainability? The term

Non- Governmental Organizations (NGOs) is used to describe a bewildering array of groups and

organizations - from activist groups 'reclaiming the streets' to development organizations

delivering aid and providing essential public services. Others are research-driven policy

organizations, looking to engage with decision-makers. Some NGOs view themselves as

watchdogs, casting a critical eye over current events in the society. NGOs come from different

areas with contrasting levels of resources. Some organizations are highly sophisticated, media-

savvy organizations such as Friends of the Earth; others are tiny, grassroots collectives. Non-

Governmental Organizations are commonly defined as organizations pursuing some sort of

public interest or public good, rather than individual or commercial interests. Although it is often

assumed that NGOs are charities or enjoy non-profit status, some NGOs are profit-making

organizations such as cooperatives and the groups which lobby on behalf of profit-driven

interests. An example is the World Trade Organization definition of NGOs which is broad

enough to include industry lobby groups such as the Association of Swiss Bankers and the

International Chamber of Commerce.

The NGO community remains a diverse constellation. Some groups may pursue a single policy

objective - for example access to AIDS drugs in developing countries or press for freedom.

Others may pursue more sweeping policy goals such as poverty eradication or human rights

protection. The similarities in the different NGOs is that the non-profit status means they are not

hindered by short-term financial objectives. The NGOs are able to devote the organizations to

issues which occur across longer time horizons, such as climate change, poverty eradication,
disaster management, peace and conflict management, malaria prevention, a global ban on

landmines among others.

NGOs often enjoy a high degree of public trust, which can make them a useful - but not always

sufficient - proxy for the concerns of society and stakeholders. Not all NGOs are amenable to

collaboration with the government of private sector. Some prefer to remain at a distance, by

monitoring, publicizing, and criticizing in cases where the organizations fail to take seriously

their impacts upon the wider community. However, many are showing a willingness to devote

some of their energy and resources to working alongside the organizations to address corporate

social responsibility.

Rise of Non- Governmental Organizations in Sustainable Development

The NGO sector is now the eighth largest economy in the world worth over $1 trillion a year

globally. It employs nearly 19 million paid workers, not to mention countless volunteers. The

study reveals that many NGOs are now shifting from their traditional confrontational roles to

more collaborative interactions with governments and businesses. NGOs spend about $US15

billion on development each year, about the same as the World Bank. While the NGO movement

has been growing rapidly since the 1980s, the union movement has been in decline.

The links between non-governmental organizations (NGOs) and trade unions run very deep. It

was civil society activism, led by trade unions, which paved the way for the rise of NGOs after

WWII. Many of them were directly established by unions (BSDglobal). The two work together

in powerful coalitions such as the Global Call to Action against Poverty and the anti-sweatshop

movement, and run joint campaigns against free trade agreements and various huge companies

such as think Wal-Mart. It can be a winning combination, as the anti-apartheid struggle showed
ten years ago, and the battle against water privatization is showing today. In fact the term "social

movement unionism" was coined to reflect this wider collaborative approach, which has changed

the face of many developing countries, most recently in Georgia and the Ukraine, and previously

throughout much of Latin America.

NGOs have often acted as proxies for unions in countries where the labor movement is

repressed. Codes of conduct and corporate responsibility are often won through joint pressure,

and NGO staff tend to be active members within their unions, just as union staff are often

involved with NGO work. Each year the two exchange huge amounts of money in support of

each other's projects. Some countries such as Ireland and South Africa are even going beyond tri-

partism to include civil society and NGOs as a fourth social partner. The ILO is currently

debating a similar step. The United Nations has given advocacy groups an international

framework within which to work.

The NGO movement is a complex mishmash of alliances and rivalries; charities and businesses;

radicals and conservatives. Funding comes in from all quarters, and it goes back out again in

every conceivable direction. The World Bank definition of NGOs is broad enough to include PSI

which is a Nonprofit organization making it easier for people in the developing world to lead

healthier lives. It also includes churches, industry lobby groups such as the Association of Swiss

Bankers and the International Chamber of Commerce.

The term NGO came into currency at the end of the Second World War, as the United Nations

sought to differentiate between inter-governmental specialized agencies and private

organizations. But the origins of the movement are much older. The first international NGO was

probably the Anti-Slavery Society, formed in 1839. The anti-slavery movement, which reached
its height at the end of the 18th century, was the catalyst for many organizations that followed.

Other early NGOs that grew out of wars, included the Red Cross in the1850s after the Franco–

Italian war; Save the Children after World War I; and Oxfam and CARE after World War II.

The Bill and Melinda Gates Foundation is now the biggest NGO in the World, with an

endowment of $28.8 billion. Some NGOs are sophisticated media darlings; others are waging

tireless battles in anonymity at grass-roots level. Some, such as the Amnesty International, are

membership-based, refusing to accept money from governments or political parties. Others are

huge profit-making organizations, which exist purely to lobby on behalf of profit-driven

interests.

Increasingly, NGOs are becoming tied to governments by way of funding arrangements and

contracts for service. In 2001 CARE International received almost 70% of its $US420 million

budget from government contributions. A 1998 survey showed that a quarter of the income of

Oxfam came from the British government and the EU. World Vision in the United States

collected US$55 million worth of goods from the US government. In the same year Médecins

Sans Frontií¨res got 46% of its income from government sources. Earlier, a six country study of

NGO income found that: "fees for services had increased by 52%, and revenue from the public

sector by 40%. In the meantime philanthropically income had only increased by 8% (Non-

Governmental Organizations (NGOs) in the United States, 2017).The NGO movement represents

civil society's most visible response to globalization.

Historically speaking, the trade union movement started to develop at roughly the same time - in

response to the industrial revolution. But the evolution of unions has run a very different course.

After 175 years the movement has developed into the world's largest democratic force. Reaching
from shop floor level in most sectors of most countries, up through national federations and on to

a series of regional and global federations, the peak body, the ICFTU, can justifiably claim to

speak for about 155 million people.

There may be a huge area of common interest between the two movements, but industrialization

and globalization are two very different revolutions. The respective forms which have evolved

and the resulting cultural differences often lead to difficulties and tensions. As one union leader

put it recently, "The NGO movement may be a great force for change, but it cannot say what that

change should be." The lack of a unified political voice may explain the dramatic growth of

NGOs since the 1980s. As the World Bank and IMF forced cuts in public services, NGOs were

encouraged move in to fill the gaps. They were considered as the preferred channel for service

provision, in deliberate substitution for the state. The World Bank not only encourages member

governments to work with NGOs on development projects, but also directly funds the NGO

projects. From1973 to 1988, NGOs were involved in about 15 (World) Bank projects a year. By

1990 that number had jumped to 89, or 40% of all new projects approved (Cotton-Betteridge,

2015).

There is no particular logic behind this transition; it seems to serve an ideological purpose rather

than an economic one. There is no evidence to show that NGO service provision is cheaper than

public provision. The United States, where NGOs have a highly developed role in the provision

of services under government contract, they have come under criticism precisely because they

inflate program costs, as well as creating new bureaucratic problems of accountability (Cross,

1997). Many unions and NGOs natural allies; some are working in complementary areas and

others are almost competitors, thriving on problems which unions are trying to prevent.
PSI has worked with NGOs all over the world, at both national and international levels. Both

have played a major role in Global Call to Action against Poverty. Deputy General Secretary

Alan Leather recently co-edited a book on the relationship between NGOs and unions in which

he concludes: "there are issues of such significance to civil society, including workers and their

organizations, that the only way to tackle them is through the broadest possible coalitions". In

this increasingly global environment, NGOs are often the shock troops of civil society. Unions,

perhaps, are the nascent alternative. As the union movement continues to evolve in the face of

globalization, unions may have more to learn from NGOs than from any other player. As we saw

during the unprecedented global actions against poverty in 2005, the best NGOs don't just meet

your expectations, they change them.

The new wave of business-NGO collaborations differs from the relationships of the past. No

longer is corporate philanthropy the main driver for collaboration. We are now seeing the birth of

strategic partnerships that are designed to tackle both internal operational issues and the external

impacts of corporate activity. Modern NGO-business partnerships involve NGOs and trade

unions in decisions that affect core business practices. As a consequence, corporate social

responsibility (CSR) no longer consists merely of the 'nice' things a company might do with its

profits; increasingly, it goes to the heart of how companies make those profits in the first place.

A notable trend in business-NGO relations has been that of the rise in NGOs that aim at

promoting sustainable development. For example, the British NGO Fairtrade Foundation

launched a pilot project in 1997 to work with British companies in developing codes of practice

to guide relationships with their southern suppliers. A similar initiative, but with a broader
mandate and with UK government backing, was launched in 1998. The Ethical Trading Initiative

(ETI) is an alliance of companies, NGOs and trade union organizations committed to working

together to identify and promote good labor practice, including monitoring and independent

verification. Participants include supermarket chains J. Sainsbury and Tesco, leading garment

industry players such as Levi Strauss and the Pentland Group, and NGOs such as Oxfam and

Save the Children.

The rising prominence of NGOs

Until late 1970s: A limited number of small NGOs receiving little external support constitute the

NGO sector. Most are northern-based with a southern presence, often based on religious

assistance and/or in short-term relief.

Late 1970s to 1980s: ‘The NGO decade’ takes place amidst the Western pursuit of neoliberal

agendas, with NGOs emerging as a promising development alternative.

Late 1990s: Alongside emergence of the good governance agenda, the first concerns

surrounding NGOs take off alongside a focus back on the role of the state.

2000s: A new international aid regime promises greater consultation and focus on non-growth

factors. NGOs with their people-centered, rights-based, and grassroots-driven approaches are

well-suited to continue riding the NGO wave.

2010s: With persistent concerns of NGOs remaining unaddressed and recognition of their

limited success in advocacy and empowerment, there is increasing recognition that NGOs are

only one sector within broader civil society and they must reorient themselves with their

grassroots-roots.
NGOs and the state

NGOs are often polarized with local and national governments, but this overlooks the nature of

relationships between the two, which can range from overt and hidden tensions and active

hostility to cooperation and collaboration, depending on multiple influences such as successive

government regimes and their dispositions and changing NGO strategies and interventions (Rose

2011). While there is scope for positive relationships between government and NGOs for those

working towards mutual goals in service and welfare provision, those working openly in

advocacy and human rights tend to be viewed with suspicion or open hostility, especially when

explicitly challenging the state.

In Pakistan, for example, Nair (2011) highlights the potential for collaboration when NGOs

remain in predefined roles of service provision, but the generation of conflict when NGOs step

outside these to question government policies. While collaboration and strong linkages with

national governments assists 7 programme sustainability, where interests of the state and NGOs

increasingly coincide, this runs the risk of pushing out the interests of those they are both

responsible to, the poor. Prevailing institutional arrangements underpin the emergence and

proliferation of NGOs in developing countries, ensuring that every country’s NGO sector is

different and distinctive (Lewis 1998).

Diverse and complex, relations between governments and NGOs vary considerably from

country to country and region to region. In South Asia, Nair (2011) traces the evolutionary

history of relationships between the state and NGOs in Bangladesh, India and Pakistan, finding

that a mixture of sociopolitical environments, NGO activities, donor presence and agendas, and

global policies and pressures have influenced government–NGO relationships to varying degrees

across the three countries. A withering of formal representative institutions fuelled the explosion
of NGOs in India, with political parties since the 1970s being increasingly dismissive of

excluded castes and groups. Likewise, in the Philippines, too, the inability of political parties to

secure representation and participation for a large proportion of the population created an

institutional vacuum into which NGOs stepped (Clark 1998). In contrast, NGOs in the East

Asian countries of Indonesia and Vietnam proliferated in response to state hegemony rather than

the weakness of formal institutions, attempting to expand the limited political space available to

civil society. Characterized by its history of active associational life in which indigenous

membership based organizations have long played a role in community life and development,

Africa experienced its NGO boom a decade later, starting in the 1990s. Kenya, for example,

experienced a rapid increase in registered NGOs, from 400 in 1990 to over 6,000 in 2008 (Brass

2011). Likewise, in Tanzania, the 41 registered NGOs in 1990 had increased to more than 10,000

by 2000 (Hearn 2007).

In Uganda, the NGO sector is viewed with mixed feelings, including rampant suspicion that the

public good is not the primary motivation fueling NGOs (Barr, Fafchamps & Owens 2005).

Political influences have been suggested as a strong influence on NGOs in Africa, with NGOs

joining the patronage networks of political leaders. In Latin America, NGOs have historically

functioned in opposition to the government, playing a crucial role in strengthening civil society.

Consequently, the NGO sector here emerges from a stronger and more radicalized body of civil

society organizations in opposition to the authoritarian regimes across the region (Bebbington

2005). Transitions to democracy throughout the region meant NGOs could no longer base their

identity purely on resistance, and a distortion in incentives fostered by foreign aid exacerbated

pressures on NGOs to move towards greater collaboration with government in service provision

Role of Non- Governmental Organizations in Sustainable Development

had in our environment was at past not as greatly considered. For example, decades ago, clean

water used to be accessible to all, and filtration systems were not needed. Today, because of

water pollution due to industrial development and the growing number of pollutants in rivers,

seas, and oceans, access to clean water is a privilege (Rinkesh, 2018). As much as it is the

responsibility of everyone to take care of the planet, organizations such as NGOs have taken the

lead to promote environmental sustainability. NGOs make a difference in sustainable

development because of the image they have imparted to the public. The NGOs are seen as

organizations trusted by many – ones who do well for the people. This has given the NGOs the

capability to use their influence and be able to impact society.

Non-governmental organizations (NGOs) have played a major role in pushing for sustainable

development at both local and international level. The groups have been key drivers of inter-

governmental negotiations, ranging from the regulation of policies and hazardous wastes to a

global ban on land mines and the elimination of slavery. The NGOs are not only focused on

governments and inter-governmental processes but also on also on powerful corporations - many

of which can rival entire nations in terms of their resources and influence. The advances in

information and communications technology has helped NGOs to focus also on the social and

environmental externalities of business activity. Both multinational brands and organizations that

do not specialize in highly branded visible goods and service provision have been acutely

susceptible to pressure from activists and from NGOs eager to challenge the labor,

environmental and human rights record of companies.

In response, many organizations are going for a broader, stakeholder approach which not only

seeks to increase share value, but also cares about how this increased value is to be attained. The
broader approach takes into account the effects of business activity on stakeholders -that is the

shareholders, customers, employees, communities and other interested groups. The result of

focusing on the broader approach is the many visible manifestations. One has been the devotion

of energy and resources by companies to environmental and social affairs. Companies are taking

responsibility for their externalities and reporting on the impact of their activities on a range of

stakeholders. Not only merely reporting but also striving to design new management structures

which integrate sustainable development concerns into the decision-making process. The credit

of create g these trends goes to NGOs.

NGOS can promote sustainable development by leading by example. From the practices of day-

to-day operations to the events hosted and attended by NGOs, sustainability should be evident.

These can be done through the guidelines and services set out for their employees. Small

examples could be providing eating utensils to discourage the use of disposable plastics. Another

example could be making good use of the technology we have today. Automation and saving

through a drive will decrease the need for printing and will, therefore, decrease the demand for

paper as well (Yu, 2019).

In line with that, when hosting events such as conferences, NGOs have the option to go

paperless. Online registration and having delegates download an app for all the agendas not only

promote sustainability but also displays further innovation and concern for the environment.

Aside from being environmentally friendly, this is also beneficial as it is proven to be more

productive. Automation not only relieves employees of redundant tasks, it also produces more

accurate results (Rogers, 2018) Apart from that, giving away eco-friendly products such as

reusable eco-bags instead of the usual plastic or paper bags can also serve as encouragement to

the attendees. Likewise, attendees will also prefer this as an eco-bag is something they can use
instead of something they throw away. Although leading by example can definitely go a long

way, it is not enough given our current lifestyles and situations. The options consumers have will

depend on what many businesses and corporations have to offer. If no one produces eco-friendly

products, the likelihood of consumers going out of their way to contribute in saving the

environment is also diminutive.

            NGOs, given that they are trusted by the public, can also host conferences in partnership

with Philanthropic foundation aimed to have participants from businesses to promote sustainable

lifestyle options. Looking for philanthropic organizations to partner with should be achievable

given that numerous philanthropists have been looking into sustainable development. For

example, the Bill and Melinda Gates Foundation has been regularly supporting projects in

relation to sustainable development and is said to have been funding about USD 60 million on a

regular basis (Nay& Ogden, 2018). Apart from that, over 50 other philanthropists have also

made donations to projects that promote sustainable development.

Partnerships with businesses and corporations are essentially important in providing sustainable

alternatives. Corporations also trust NGOs to ensure sustainable development. Given that a

business is usually for-profit, they see the good in those who do not work simply for profit.

Additionally, because of the image NGOs have, partnerships will also be beneficial in the

business of various corporations. Giving up old trends may be costly at the beginning but will

inevitably attract consumers as well knowing that they accomplish their part in corporate social

responsibility. Several corporations are already practicing more sustainable operations such as

refusing to test on animals, no longer providing plastic bags which encourage consumers to

recycle their bags, using paper straws or other alternatives instead of plastic straws, and many
more. The three R’s, namely reduce, reuse, and recycle are highly encouraged by NGOs and to

properly implement this, some corporations will need guidance (Fowler, 2013).
Sustainability

Sustainability is concern in relation to NGO, given their reliance on short- and medium-term

project-based funding. Projects with defined timescales, measurable outputs, and an emphasis on

physical capital development are not well suited to long-term structural change, particularly

when implemented by multiple and competing small-scale NGOs (Murray &Overton 2011). It is

concerns of financial sustainability and organizational survival that drive the erosion of an

NGO’s original values and mission, with NGOs forced to focus on financial sustainability,

professionalism and survival as they expand.

Programmes based on mobilization and anti-hegemonic stances became less common as NGOs

were encouraged by donors, who wanted to avoid long-term commitments, to become more

professional and sustainable organizations. Growing rapidly in size, the primary concern of

NGOs throughout this became to keep funds flowing, feeding into their programmatic choices at

the grassroots level (Stiles 2002). Fierce competition for donor funds exacerbate these problems,

preventing NGOs from forming networks or coalitions that could be beneficial for obtaining

funding, advancing their advocacy work, and fulfilling their objectives in line with their value

bases. This also poses a threat to the sustainability of NGOs as sustainable civil society

organizations.

The strong focus on success also leads NGOs to be secretive and isolated, sharing little

information with other NGOs and development actors and being reluctant to encourage

evaluations. A shift towards longer-term programmes was one reason driving the good

governance agenda that put the state back to its central position in national development.

Channeling aid through states means larger-scale operations and potentially greater levels of

efficiency of aid spending (Murray& Overton 2011).

relationships they had previously sought to avoid and drawing them away from the grassroots.

The inability and/or unwillingness of NGOs to fulfil their strengths of grassroots orientation,

innovativeness and experimentation, and accountability and autonomy, undermines their

legitimacy as true ‘development alternatives’ as well as their impact in structurally entrenched

forms of poverty.

NGOs will and must continue to play a key role in development. Their potential strengths remain

constructing and demonstrating ‘alternatives’ to the status quo, a need that has never been more

pressing). Priority, therefore, must lie in finding ways through which NGOs can return to their

roots, regain their distinctive values, and remove these institutional distortions. While NGOs are

often seen as synonymous with civil society, drawing a road map to reach these goals requires a

better understanding of the position of NGOs within broader civil society. Increasing recognition

of NGOs’ limitations in offering true participatory development has been accompanied by a

subsequent shift in interest in broader civil society, in which NGOs are only one actor, and the

strengthening of civil society became a specific policy objective for donors within the good

governance agenda. Through a greater focus on politicized activities that directly challenge

social and political inequity, this marks a shift towards development and the realignment of

development with the grassroots.

With the public trust and support NGOs have which include community participations and

partnerships from several organizations and philanthropists who donate to individuals, the NGOs

are responsible for using their influence to eventually ensure that more of us can play our

respective roles in saving the world for todays and for the future generations to come. Seen to

offer participatory and people-centered approaches to development that were both innovative and

experimental, NGOs rose to prominence on the basis of their strengths as local, grassroots-level

development organizations offering the potential for innovative bottom-up agendas reflecting the

needs and wants of local communities and disadvantaged groups. Their close grassroots linkages

meant that NGOs were seen to be more than just alternative service providers, also offering a

route to empowerment through allowing communities and disadvantaged groups to articulate

their needs in programme design and implementation. NGOs remain an important part of an

emerging civil society that creates a more balanced relationship between governments, markets

and citizens. An increasing recognition of NGOs as only one component of broader civil society

has drawn attention to the need to find a more effective role for NGOs in strengthening civil

society. This requires a reorientation of NGOs in line with their original strengths and vision,

putting communities and the grassroots back at the center of strategies and participatory

approaches back at the center of activities. Only through this change, however, can they

contribute to the redistributions and transformations necessary for longer-term structural change

that tackles the roots causes – rather than symptoms of – poverty and its related social and

economic vulnerabilities. Learning from successes such as SDI highlights the scale and impact

which can be achieved through such an approach by effectively linking thousands of community-

level associations at the national and international level.

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