Non-Government Organization (NGO) | Agriculture Optional Notes for UPSC PDF Download

Non-governmental Organizations (NGOs)

• As per the World Bank's definition, NGOs are nonprofit entities engaged in activities aimed at alleviating suffering, advocating for the welfare of the underprivileged, safeguarding the environment, offering essential social services, or fostering community development.
• These organizations are distinct from the government, possess legal recognition, and are officially registered under government-sanctioned acts, like the Societies Registration Act of 1860 in India.
• In India, the term "NGO" encompasses a wide array of organizations, including those that are nongovernmental, quasi-governmental, voluntary, or non-voluntary, depending on their operational laws and the nature of their activities.

In India, civil society groups can be categorized into the following broad groups based on the laws governing their establishment and the scope of their initiatives:

• Registered societies formed for specific purposes.
• Charitable organizations and trusts.
• Local stakeholder groups, microcredit and thrift enterprises, self-help groups.
• Professional self-regulatory bodies.
• Cooperatives.
• Entities lacking a formal organizational structure.
• Third sector organizations promoted by the government.

Need for NGOs

• Since gaining independence, India has experienced remarkable economic progress in areas such as education, healthcare, poverty reduction, and overall quality of life.
• Nonetheless, issues of exclusion persist, particularly concerning women, children, and marginalized communities, in the development process.
• Inequitable growth has led to negative consequences, including the rise of Naxalism, recurring violence related to reservations, and a growing number of farmer suicides.
• India's position in the 2018 Human Development Index rankings was 130th, indicating areas for improvement. The 2018 Global Hunger Index revealed that 38.4% of children under five in India suffer from stunted growth.
• Given this context, civil society plays a pivotal role in voicing the concerns of the people and ensuring that minority groups are not neglected.
• The state requires the active and collaborative involvement of civil society in various development activities and programs.
• Non-governmental organizations (NGOs) serve as the practical arms of civil society and thus play a crucial role in the processes of development.

Legislations regulating the finances of NGOs

• The Foreign Contribution (Regulation) Act of 2010, known as FCRA, governs and oversees the foreign funding of voluntary organizations in India. It is enforced by the Ministry of Home Affairs.
• This legislation ensures that recipients of foreign contributions use the funds for their intended purposes.
• Organizations covered by this act are required to register themselves every five years.
• The Foreign Exchange Management Act of 1999, or FEMA, aims to consolidate and modify the laws regarding foreign exchange. Its primary objectives are to facilitate external trade and payments and promote the orderly development and maintenance of the foreign exchange market in India.
• Transactions under FEMA are referred to as fees or salaries, while under FCRA, they are termed grants or contributions.
• In 2016, the authority to monitor NGOs was shifted from the Ministry of Finance to FEMA. This change aimed to bring all NGOs receiving foreign contributions under a single regulatory framework for more effective oversight and regulation. This step was taken to ensure that only one regulatory body monitors the flow of foreign funds to these organizations.

Role of Non-Governmental Organisations

• Advocacy/Social Safety-Valve Role:
  a. Non-governmental organizations (NGOs) play a crucial role in drawing public attention to societal issues and needs.
  b. They serve as the primary means by which communities can voice their concerns.
• Improving Government Performance:
  a. NGOs can enhance government accountability by ensuring that the government is responsive to the broader public rather than narrow sectarian interests.
  b. They contribute to innovative and flexible policymaking by providing their independent expertise and research teams.
  c. NGOs enhance the efficiency of local service delivery through community involvement.
  d. They also contribute to policy monitoring and evaluation, with the Comptroller and Auditor General (CAG) taking note of NGO reports and social audits when preparing its own reports.
• The Service Role:
  a. The non-profit sector acts as a flexible mechanism for individuals concerned about social or economic issues to take action.
  b. NGOs cater to segments of the population with demands for public goods that go beyond what the government or society is willing to support.
  c. They facilitate constructive conflict resolution, including through international Track II diplomacy involving non-governmental bodies, fostering trust and confidence.
• Building Community Participation:
  a. Non-profit organizations offer alternative perspectives and, most importantly, the ability to engage in meaningful dialogues with disadvantaged communities.
  b. They promote pluralism, diversity, and freedom, with many NGOs dedicated to preserving and promoting India's rich cultural heritage, such as SPIC MACAY, which focuses on Indian classical music and culture among young people.

Activities undertaken by NGOs

• Advocacy, Analysis, and Awareness Raising: 
  • Serving as a representative voice for people and, at times, taking on a self-appointed role.
  • Conducting research, analysis, and public awareness efforts on various issues.
  • Mobilizing citizens through media campaigns and other forms of activism.
  • Engaging in lobbying efforts directed at business leaders and policymakers.
• Brokerage: Acting as an intermediary that connects different sectors and groups.
• Conflict Resolution: Serving as a mediator and facilitator in resolving disputes or conflicts.
• Capacity Building: Providing education, training, and information to enhance knowledge and skills.
• Delivery of Services: Actively delivering critical humanitarian, developmental, and social services.
• Evaluation and Monitoring: Functioning as a 'watchdog' or an impartial auditor, both through invitations and independently, to assess government and corporate performance, accountability, and transparency.

Issues with NGOs

• Accreditation poses a significant challenge, as it is often challenging to discern whether an organization genuinely aims to serve a cause or has primarily been established to access government grants.
• Excessive reliance on government funding can diminish the willingness of NGOs to critique government actions.
• NGOs have, in the past, been linked to organized crime and are sometimes viewed as fronts for extremist agendas. Foreign-funded NGOs have been involved in orchestrating protests and obstructing development projects in India.
• NGOs are occasionally perceived as intruding on long-standing traditions and cultural practices of the people, resulting in mass protests. The ban on Jallikattu, following a PIL filed by PETA, serves as an illustrative example.

Way Forward

• The establishment of a National Accreditation Council, comprising scholars, activists, and retired civil servants, is necessary to ensure NGOs' adherence to compliance standards.
• Improved collaboration between the Ministries of Home Affairs and Finance is essential for the effective monitoring and regulation of illicit and unaccounted funds.
• There is an urgent requirement for a regulatory framework to oversee the financial operations of NGOs and voluntary organizations.
• Modern citizens are enthusiastic about actively participating in processes that influence their lives. It is vital that their engagement in democracy extends beyond the mere act of voting and encompasses the promotion of social justice, gender equality, inclusion, and similar principles.