NGOs - losing the moral high ground?

• Author: Holloway, Richard
• Position: Includes related article on spurious NGOs - Nongovernmental organizations

It may seem odd to find the topic of non-governmental organizations (NGOs) on the agenda of a conference on anti-corruption. For many years, NGOs have occupied the moral high ground - often thought of as forces for good, representing the true voices of the grass roots. We are prepared for Governments and business to be self-seeking and corrupt, although we may fight against such tendencies, but we are not prepared for NGOs to be so. Our image is of Cesar Chavez and the Farm Workers Union battling with meager resources on behalf of poverty-stricken agricultural laborers, or Herbert de Souza ("Betinho") in Brazil persuading 24 million of his compatriots to donate food to hungry Brazilian citizens.

So why should we be addressing the topic of NGOs and corruption today? In my opinion, two factors are at play - the dramatic increase in money available to NGOs and the confusion about the role of NGOs.

Transparency International defines corruption as "behavior on the part of officials in the public sector, in which they improperly and unlawfully enrich themselves or those close to them by the misuse of public power entrusted to them". Obviously, NGOs have no public power, but they do have public and private resources entrusted to them.

Over the last ten years, those controlling the development assistance purse strings have increasingly allocated funds directly to NGOs, based on the assumption that they were the ones best able to deliver cost-effective services, engage stakeholders, promote participation and effectively represent the needs and interests of the poor. Much money has gone not only to existing NGOs but also to new NGOs created to avail themselves of the financial boon. Not surprisingly, however, the dynamics of the marketplace have begun to rule, as people have sought access to and control over these newly proffered resources.

Pressure on NGOs

The biggest pressure faring NGOs by far is raising funds. We would expect that a value-based NGO would start its operations in a small way, seeking funding from local sources representing individuals or organizations who share the same values. In time, as NGOs gained experience and a clearer understanding of what greater resources are needed, they would seek resources from outside the community. A worrying scenario often played out, however, is the formation of an NGO, swiftly followed by application to a foreign donor, sidestepping the involvement of a local funding partner and the learning from...