Responsible local NGOs make a vital contribution to an emerging country's economic, social, and environmental development, while helping companies establish social responsibility programs. By Miles Dodd


Responsible local NGOs make a vital contribution to an emerging country's economic, social, and environmental development. International organisations bringing technical expertise and experience, and local NGOs attuned to the home cultural and social environment, can together create an excellent working platform. The corporate sector increasingly understands the need to participate. Thomas Fox, an independent consultant writes, "Relationships with NGOs, both international and local, have been fundamental to many corporations' social responsibility programmes."

In a contribution to the Global Policy Forum , Professor Saskia Sassen of the University of Chicago notes, "NGOs are forming transnational networks - indeed many NGOs today are transnational networks." She emphasises the role of the Internet as, "an enormously important tool for democratic participation at all levels, the strengthening of civil society, and the formation of a whole new world of transnational political and civic projects". It is important that local NGOs are not excluded from these networks.

However it is difficult in many cases for local NGOs to develop and operate effectively without a wide range of coaching, encouragement, and support. Even with the help of the Internet local NGOs are unlikely in themselves to have the capacity to make an impact on global opinion. Many international NGOs already help local NGOs to develop capabilities in advocacy, administration, management, research, and technology. A good example is the initiative in Indonesia of PACT, a Washington based NGO, which runs a wide variety of projects to help local NGOs and mobilises resources to facilitate them . It is also important to note that many international NGOs rely heavily on local staff thus facilitating a transfer of knowledge

Some local NGOs are handicapped by their local political environment or conversely may be dependent upon it. Sam Chege notes that in Africa local NGOs, "sometimes operate as family business concerns" and "there are accusations that some NGOs are primarily concerned with making money and not eradicating poverty, and will appear and disappear depending on where the money is". Changing political circumstances can also profoundly affect the way local NGOs develop. In Indonesia PACT reported that the rapid changes after the fall of President Suharto required local NGOs, "to respond more proactively to increasingly vocal demands within their constituencies. They also had to learn how to be effective in a much more open political environment, in which government repression and intimidation no longer had to be factored into NGO programme planning."

Condemnation of official NGOs in "controlled" regimes may however be misplaced. The purpose of the CEP Aid Fund, run by the People's Committee of Ho Chi Minh City is, "To realize the mission of poverty alleviation entrusted to us by the State and the Communist Party". This micro-finance initiative was originally supported by a private US donation, and subsequently by the Grameen network, French, Belgian, and American NGOs, and local companies. Most significantly AusAID contributed Aus$6 million after a rigorous two-year audit and project evaluation, which in itself was a valuable learning experience for CEP staff.

In the early stages of development ODA and governmental funds may be available, however as a country grows official funds may dry up. The Thai Population and Community Development Association diversified its funding from exclusively official sources in 1974 to include by 1999 projects funded by both local and foreign corporations. Local NGOs "must begin to develop at least some degree of self-sufficiency if they are to have any medium- to long-term plans and aspirations."

Corporations may be sources of funds, but there is growing acceptance that they should assume wider social responsibility. Steve Hilton expresses the philosophical underpinning for this view, "Corporate social leadership is not achieved through philanthropy, corporate giving, employee volunteering, or community involvement, but through finding a dual purpose, social as well as commercial, for every component of the corporate anatomy."

Fox makes the point that corporations want to contribute in localities in which they are specifically involved, and may therefore prefer to deal directly with local NGOs rather than more broadly focused international organisations.

In Colombia, BP participate in a "Tri-Sector Partnership" in Casanare province with the Casanare Chamber of Commerce and a local NGO, Corporacion Cemilla . The competencies of all three partners are combined. The NGO provides links to the local community, the Chamber of Commerce official links, and the company expertise, logistical support, and leadership training. The three parties formed a Steering Committee to propose specific projects of which the first was a Community Training programme.

In India a project to provide safer drinking water, improved health and sanitation, and better watershed management saw the partnership of an Indian company, Ion Exchange India, providing appropriate technical expertise; Oxfam GB's Business for Social Development initiative in Ahmedabad, arranging a forum representing business, academia, NGOs, media etc; and a local NGO, the Manav Kalyan Trust, providing a direct link to the communities and villages involved in the project. The link describes how the partners worked together for the betterment of the project. The story of Zankhana tells how one young staff member provided valuable expertise and commitment to the local NGO.

The politics of aid to developing economies are complex. The role of corporations is particularly sensitive and has been widely criticised, but businesses will not go away and confrontation is unlikely to result in long-term benefits. As Steve Hilton writes, "If you want to change the world, then do it through business. And if you want to help your business, then help change the world." Co-operation between all interests is crucial, and the local NGO, at the action end of the delivery chain, may be the most critical for a project's success.

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Miles Dodd is a visiting Professor at the Graduate School of Business Nihon University, Tokyo. Contact him at: doddm@gsb.nihon-u.ac.jp. This piece reprinted from Ethical Corporation magazine, a GreenBiz News Affiliate.