What is a NGO (from Wikipedia)
A non-governmental organization (NGO) is a legally constituted organization created by natural or legal persons that operates independently from any form of government. The term originated from the United Nations (UN), and is normally used to refer to organizations that are not a part of the government and are not conventional for-profit business. In the cases in which NGOs are funded totally or partially by governments, the NGO maintains its non-governmental status by excluding government representatives from membership in the organization. The term is usually applied only to organizations that pursue wider social aims that have political aspects, but are not openly political organizations such as political parties.
NGOs are difficult to define and classify, and the term 'NGO' is not used consistently. As a result, there are many different classifications in use. The most common use a framework that includes orientation and level of operation. An NGO's orientation refers to the type of activities it takes on. These activities might include human rights, environmental, or development work. An NGO's level of operation indicates the scale at which an organization works, such as local, international or national.
One of the earliest mentions of the acronym "NGO" was in 1945, when the UN was created. The UN, which is an inter-governmental organization, made it possible for certain approved specialized international non-state agencies - or non-governmental organisations - to be awarded observer status at its assemblies and some of its meetings. Later the term became used more widely.
NGOs vary in their methods. Some act primarily as lobbyists, while others primarily conduct programs and activities. For instance, an NGO such as Oxfam, concerned with poverty alleviation, might provide needy people with the equipment and skills to find food and clean drinking water, whereas an NGO like the FFDA helps through investigation and documentation of human rights violations and provides legal assistance to victims of human rights abuses. Others, such as Afghanistan Information Management Services, provide specialized technical products and services to support development activities implemented on the ground by other organizations.
NGOs were intended to fill a gap in government services, but in countries like India, NGOs are gaining a powerful stronghold in decision making.
Reasons for Foreign Aid (by Chandramita Bora)
The term foreign aid usually refers to financial assistance that is provided on intergovernmental or international level. It may take the form of economic, technical or military assistance. It generally involves transfer of resources like capital, goods and services from the donor to the recipient countries.
There can be varied reasons for giving foreign aid, such as economic, political, strategic as well as cultural; the most important reason being, augmenting economic development of the recipient country. Less developed countries (LDCs) are characterized by low income and unemployment, which results in low savings and investment. Therefore, capital stock is small in these countries, while the population growth is comparatively high. In order to sustain such large populations, they need rapid economic development, which is simply not possible due to low levels of saving and investment. As a result they turn to richer countries for external help in the form of financial and technical assistance. Financial assistance given by the developed countries (DCs) not only aims at economic development of the recipient country, but also for the balanced growth of the world economy.
It is now an indispensable part of foreign policy and is sometimes used as an instrument to establish better ties with other countries. It is also used as a means to expand the market of the donor countries: for example in case of 'tied' foreign aid, the recipient country is required to make certain purchases only from the donor country, or countries suggested by it. Clearly, economic development in recipient countries would also enlarge the market for the products of developed countries. It is also given on humanitarian grounds, to cope with the crises caused by man-made or natural disasters. Another important reason is military assistance, to establish strong military ties as well as to strengthen the military defenses of the recipient country.
The term foreign aid usually refers to financial assistance that is provided on intergovernmental or international level. It may take the form of economic, technical or military assistance. It generally involves transfer of resources like capital, goods and services from the donor to the recipient countries.
There can be varied reasons for giving foreign aid, such as economic, political, strategic as well as cultural; the most important reason being, augmenting economic development of the recipient country. Less developed countries (LDCs) are characterized by low income and unemployment, which results in low savings and investment. Therefore, capital stock is small in these countries, while the population growth is comparatively high. In order to sustain such large populations, they need rapid economic development, which is simply not possible due to low levels of saving and investment. As a result they turn to richer countries for external help in the form of financial and technical assistance. Financial assistance given by the developed countries (DCs) not only aims at economic development of the recipient country, but also for the balanced growth of the world economy.
It is now an indispensable part of foreign policy and is sometimes used as an instrument to establish better ties with other countries. It is also used as a means to expand the market of the donor countries: for example in case of 'tied' foreign aid, the recipient country is required to make certain purchases only from the donor country, or countries suggested by it. Clearly, economic development in recipient countries would also enlarge the market for the products of developed countries. It is also given on humanitarian grounds, to cope with the crises caused by man-made or natural disasters. Another important reason is military assistance, to establish strong military ties as well as to strengthen the military defenses of the recipient country.
It is generally provided in the context of strengthening social and economic development of the developing and less developed countries, and it is in fact playing a key role in the development process of these countries. In less developed countries, it helps to reduce the shortage of domestic saving and investment. Besides, it also helps the LDCs in overcoming technical backwardness through technical assistance along with financial and physical capital. All this helps in raising the productivity of labor and capital in these countries.
LDCs lag behind in basic infrastructure development, like, transport and communication, power, education, health services and heavy industries such as iron, steel, oil and heavy engineering. Development of these key areas is a prerequisite for economic growth and development, but the public and the private sectors of the LDCs are not strong enough to undertake such high capital intensive projects which require huge investments. In such circumstances, foreign aid aimed in this direction, can go a long way in developing these economies. By investing in these key areas, it plays an important role in increasing the level of income and employment of LDCs. Besides, this aid also helps these economies in tidying over problems related to balance of payments (BOP) and inflation.
However, despite all the merits associated with foreign aid, it is often criticized as a wasteful investment. It is found that in many countries, it is invested in wasteful projects and production of luxury goods instead of essential commodities. This increases the burden of public debt, besides increasing external dependency. It has also been argued that it is not always essential for economic development as it inhibits domestic savings and investment. Most of all, this assistance is alleged to be an instrument of influencing the domestic policies of LDCs. It has also been observed that much of this financial help goes into the pockets of corrupt politicians and bureaucrats of the recipient countries, instead of being invested in developmental projects.
Nevertheless, there is no doubt that it has been instrumental in facilitating economic development in many less developed economies. If both the donor and recipient countries take appropriate measures to prevent misutilization of funds, then it could play a significant role in fostering rapid growth and development of the less developed economies. However, foreign aid should not be considered as a permanent solution to the economic problems of the LDCs and hence should be supplemented by adequate efforts to raise the level of domestic savings and investment.
Critics of Western Aid
More information
And here I am ending off with a clip by Mr. Bill Gates:
A non-governmental organization (NGO) is a legally constituted organization created by natural or legal persons that operates independently from any form of government. The term originated from the United Nations (UN), and is normally used to refer to organizations that are not a part of the government and are not conventional for-profit business. In the cases in which NGOs are funded totally or partially by governments, the NGO maintains its non-governmental status by excluding government representatives from membership in the organization. The term is usually applied only to organizations that pursue wider social aims that have political aspects, but are not openly political organizations such as political parties.
NGOs are difficult to define and classify, and the term 'NGO' is not used consistently. As a result, there are many different classifications in use. The most common use a framework that includes orientation and level of operation. An NGO's orientation refers to the type of activities it takes on. These activities might include human rights, environmental, or development work. An NGO's level of operation indicates the scale at which an organization works, such as local, international or national.
One of the earliest mentions of the acronym "NGO" was in 1945, when the UN was created. The UN, which is an inter-governmental organization, made it possible for certain approved specialized international non-state agencies - or non-governmental organisations - to be awarded observer status at its assemblies and some of its meetings. Later the term became used more widely.
NGOs vary in their methods. Some act primarily as lobbyists, while others primarily conduct programs and activities. For instance, an NGO such as Oxfam, concerned with poverty alleviation, might provide needy people with the equipment and skills to find food and clean drinking water, whereas an NGO like the FFDA helps through investigation and documentation of human rights violations and provides legal assistance to victims of human rights abuses. Others, such as Afghanistan Information Management Services, provide specialized technical products and services to support development activities implemented on the ground by other organizations.
NGOs were intended to fill a gap in government services, but in countries like India, NGOs are gaining a powerful stronghold in decision making.
Reasons for Foreign Aid (by Chandramita Bora)
The term foreign aid usually refers to financial assistance that is provided on intergovernmental or international level. It may take the form of economic, technical or military assistance. It generally involves transfer of resources like capital, goods and services from the donor to the recipient countries.
There can be varied reasons for giving foreign aid, such as economic, political, strategic as well as cultural; the most important reason being, augmenting economic development of the recipient country. Less developed countries (LDCs) are characterized by low income and unemployment, which results in low savings and investment. Therefore, capital stock is small in these countries, while the population growth is comparatively high. In order to sustain such large populations, they need rapid economic development, which is simply not possible due to low levels of saving and investment. As a result they turn to richer countries for external help in the form of financial and technical assistance. Financial assistance given by the developed countries (DCs) not only aims at economic development of the recipient country, but also for the balanced growth of the world economy.
It is now an indispensable part of foreign policy and is sometimes used as an instrument to establish better ties with other countries. It is also used as a means to expand the market of the donor countries: for example in case of 'tied' foreign aid, the recipient country is required to make certain purchases only from the donor country, or countries suggested by it. Clearly, economic development in recipient countries would also enlarge the market for the products of developed countries. It is also given on humanitarian grounds, to cope with the crises caused by man-made or natural disasters. Another important reason is military assistance, to establish strong military ties as well as to strengthen the military defenses of the recipient country.
The term foreign aid usually refers to financial assistance that is provided on intergovernmental or international level. It may take the form of economic, technical or military assistance. It generally involves transfer of resources like capital, goods and services from the donor to the recipient countries.
There can be varied reasons for giving foreign aid, such as economic, political, strategic as well as cultural; the most important reason being, augmenting economic development of the recipient country. Less developed countries (LDCs) are characterized by low income and unemployment, which results in low savings and investment. Therefore, capital stock is small in these countries, while the population growth is comparatively high. In order to sustain such large populations, they need rapid economic development, which is simply not possible due to low levels of saving and investment. As a result they turn to richer countries for external help in the form of financial and technical assistance. Financial assistance given by the developed countries (DCs) not only aims at economic development of the recipient country, but also for the balanced growth of the world economy.
It is now an indispensable part of foreign policy and is sometimes used as an instrument to establish better ties with other countries. It is also used as a means to expand the market of the donor countries: for example in case of 'tied' foreign aid, the recipient country is required to make certain purchases only from the donor country, or countries suggested by it. Clearly, economic development in recipient countries would also enlarge the market for the products of developed countries. It is also given on humanitarian grounds, to cope with the crises caused by man-made or natural disasters. Another important reason is military assistance, to establish strong military ties as well as to strengthen the military defenses of the recipient country.
It is generally provided in the context of strengthening social and economic development of the developing and less developed countries, and it is in fact playing a key role in the development process of these countries. In less developed countries, it helps to reduce the shortage of domestic saving and investment. Besides, it also helps the LDCs in overcoming technical backwardness through technical assistance along with financial and physical capital. All this helps in raising the productivity of labor and capital in these countries.
LDCs lag behind in basic infrastructure development, like, transport and communication, power, education, health services and heavy industries such as iron, steel, oil and heavy engineering. Development of these key areas is a prerequisite for economic growth and development, but the public and the private sectors of the LDCs are not strong enough to undertake such high capital intensive projects which require huge investments. In such circumstances, foreign aid aimed in this direction, can go a long way in developing these economies. By investing in these key areas, it plays an important role in increasing the level of income and employment of LDCs. Besides, this aid also helps these economies in tidying over problems related to balance of payments (BOP) and inflation.
However, despite all the merits associated with foreign aid, it is often criticized as a wasteful investment. It is found that in many countries, it is invested in wasteful projects and production of luxury goods instead of essential commodities. This increases the burden of public debt, besides increasing external dependency. It has also been argued that it is not always essential for economic development as it inhibits domestic savings and investment. Most of all, this assistance is alleged to be an instrument of influencing the domestic policies of LDCs. It has also been observed that much of this financial help goes into the pockets of corrupt politicians and bureaucrats of the recipient countries, instead of being invested in developmental projects.
Nevertheless, there is no doubt that it has been instrumental in facilitating economic development in many less developed economies. If both the donor and recipient countries take appropriate measures to prevent misutilization of funds, then it could play a significant role in fostering rapid growth and development of the less developed economies. However, foreign aid should not be considered as a permanent solution to the economic problems of the LDCs and hence should be supplemented by adequate efforts to raise the level of domestic savings and investment.
Critics of Western Aid
And then, there are also critics and the current big talk surrounding the effectiveness of development and aid. Here is an interesting article by Kishore MAHBUBANI, Dean and Professor in the Practice of Public Policy also the first Dean of the new Lee Kuan Yew School of Public Policy (LKY School) on the myth of western aid
More information
Official Development Assistance by country as a percentage of Gross National Income in 2009 (April 2010)
And here I am ending off with a clip by Mr. Bill Gates:
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