2016

Globalization & Conflict

THE IMPORTANCE OF STRONG GOVERNANCE, ENFORCEMENT, AND PUBLIC AWARENESS

ROBERT-IAN GREENE

DREXEL UNIVERSITY

ECONOMICS 322 | SEMINAR PROFESSOR SYROPOULOS

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Table of Contents

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

Government Policies ...................................................................................................................... 2

Direct & Indirect Costs of Poor Governance ......................................................................................3

The Conflict Trap.............................................................................................................................6

Corruption & External Influences .....................................................................................................8

Property Rights & Enforcement ................................................................................................... 11

Environmental Degradation........................................................................................................... 12

Public Awareness ......................................................................................................................... 15

The How, What, and Why of NGOs ................................................................................................ 16

Models ......................................................................................................................................... 18

Accountability............................................................................................................................... 19

Concluding Thoughts .................................................................................................................... 20

Appendix ....................................................................................................................................... 22

Bibliography.................................................................................................................................. 25

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Introduction

There are arguably only two branches of economics that may find their roots drudged within the

realm of resource reallocation in times of contestation: Peace and Conflict Economics. Peace Economics

is a highly specialized division of economics that holds its central theme set forth within the societal

organization of persons. In particular, it is how those persons design their respe ctive political, economic,

and cultural ideals to further their societal and economic well-being. Similar in structure, but not ideals,

is the alternative combative branch of Conflict Economics. Conflict Economics is an equally dedicated

division of economics, yet, rather than allocating such resources towards the means of political,

economic, and cultural development – is instead a reallocation of resources employing means of (often,

but not always) violent conflict.

The ongoing theme of this research paper will build upon the accepted concepts of Conflict

Economics. Advancing upon the mere definition, Conflict Economics differs quite substantially than the

traditionally accepted means and goals of most introductory and intermediate economic teachings. For

instance, traditional economics builds necessary assumptions off of a non-violent society, in which

property rights and enforcement are equally assumed to have been embedded within such a society. It

is unfortunately quite the alternative stance while working on the advancement of Conflict Economics

and theory.

Conflict Economics is said to be set within a model of contest between two players at its most

fundamental analysis. It introduces the idea that two players need decide between the production of

resources and the production of wartime weaponry, often construed to be tools of seizing the resources

produced by the alternative player. For the purpose of this paper, references are made on several

occasions to what is referred to as the Resource Conflict Model. It is with this model that two parties are

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said to challenge one another over a given resource. The player who wins the game claims the entirety

of the resource, leaving the alternative player with nothing.

It is inarguable in the mere evaluation and assessment that many developing nations,

unfortunately, face this very Resource Conflict Model in aggressive terms. It has become my burden to

clearly illustrate how numerous modern and developing economic nations are seemingly stuck in a

downward spiraling pit of chaos. I plan to do so through evaluating the importance of three main

variables: Strong Government Policies, Property Rights and Enforcement, and the significant roles of

Non-Governmental Organizations. Moreover, I will promote the idea that the degradation of such

variables may subsequently lead to a poor economic outcome on a global scale.

Government Policies

Before any advancement is made in the discussion of the importance of government policy, it is

of vast importance to have a strong grasp of the differences between government and governance.

There are three particular sectors in properly managing civil society, where there is a great importance

of each sector to each other: government, private, and civil society (Mostashari). “We have evolved

from a government as we know it,” says Professor Frank Vram Zerunyan, Professor of Practice of

Governance and Director of Executive Education at University of Southern California Price School of

Public Policy, “we no longer talk about government, we talk about governance… [which is] the

interaction of the three sectors to advance any society,” (Civil Net Television).

In the consideration of nation states in which there is neither a strong government nor tolerable

governance, economic development becomes stagnant or even regressive in nature. This is precisely the

case for war-torn Angola, where there is a constant struggle to maintain power between the

government and rebellion groups. As may be deduced, in times of conflict there are direct impacts

associated with trade regimes, and subsequently, economic stability. It may be of some aid for the

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reader to once again consider the aforementioned Resource Conflict Model, where there are seemingly

only two viable options for the players to engage within: the production of economic-progressing

resources or the production of economic-regressing warfare weaponry. The ensuing discussion is the

introduction of two economic theories: one identified as the role of government and governance and

their respective impact on trade regimes, and two being a theory known as The Conflict Trap.

Direct & Indirect Costs of Poor Governance

As had been briefly discussed, there is a keen difference between government and governance

in senses other than that of the process of governing. Government often refers to the governing body

itself, while governance often refers to the act of governing the three various sectors of private,

government, and civil society. In its most elementary form, it is the members of the government that are

engaged in governance. However, as will be exemplified through present day Angola, there is a strong

relation between the strength of a government and their respective governance to the societal well-

being of their nation, which accordingly abuses the international market.

An article presented at the “Guns and Butter: The Economic Causes and Consequences of

Conflict”, Globalization and Insecurity: Reviewing Some Basic Issues, brings forth a correlation between

conflict and economic stability in terms of trade and resources. There are of course resources that are

traded on an international level that embody the foundation for many other finished trade goods – for

example, oil, diamonds, land, water resources – are all “… subject to contestation, albeit domestically by

rival groups or internationally by different countries,” (Garfinkel).

The effects of contestation may be evaluated in several interpretations, all interconnected with

globalization in one function or another; however, I would ask the reader to draw his or her attention to

the direct and indirect costs of conflict. Moreover, the term conflict may be considered ambiguous in

that it has many characterizations. For the purpose of discussion and argument, I largely intend for

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conflict to be interpreted by means of any action directly caused by one party to another to slow, or

impede, the economic development and societal well-being of another.

In times of conflict, it is widely accepted that substantial direct costs are molded in such forms

as arming individuals with defensive or offensive weaponry, as well as any cost associated directly with

the destruction of developments. What stems from these direct costs are, of course, the indirect

consequences and costs. Such might include regressed or discontinuation of production, individual

consumption, and investments. Yet, to understand the desire for destruction and economic impedance

of one party to another, one must understand the underlying reason of conflict.

Resource Wars, a term used to distinguish the conflict associated with a geographical location

and ownership, acts as the underlying foundation for the aforementioned conflict. Paul Collier, Director

of the Development Research Group at the World Bank, stated “[In] contrast to the cold war era, today’s

conflicts are less about ideologies and seizing the reins of state than about the struggle to control or

plunder resources – capturing sites rich in minerals, timber, and other valuable commodities or

controlling points through which they pass on the way to markets,” (Renner).

What may be visually represented in Table 1 within the appendix section of this report, is the

estimated revenues from conflict resources amongst eleven nations; among which lies Angola. Angola is

rich in two natural resources that are arguably non-renewable with current technological standards: oil

and diamonds. The extraction of these two resources, captured within a time lapse between 1992 and

2001, amounts to a staggering $4-4.2 billion in revenue. “Endowed with ample diamond and oil

deposits,” says Renner, “Angola should not be on the bottom rungs of the world’s social ladder… instead

of a blessing, Angola’s natural resource wealth has turned out be a curse,” (ibid).

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The majority of the Angolan population has lived in misery and terror while both government

and rebel UNITA forces leaders have devoted most of the revenue from selling Angola’s resources to

buying defensive and offensive weaponry, as well as lining their own pockets; thus illustrating some of

the direct costs of such resource wars. Aside from the direct costs of resource extraction through illegal

and oppressive measures, there are seemingly countless indirect effects. Among such indirect costs

include population displacement, which is where an individual (or group of persons) has (or have) been

forced to leave his or her habitual place of residence. This forced migration, so to speak, is by and large

instigated through the struggle of power, which leads to rebel groups assuming roles of political

organizations and leaders.

Population displacement in war-torn countries often occurs as a result of several independent

variables: fear, force, and necessity. It is widely accepted that the event of a civil war does not solely

affect those participants engaging in fighting; rather, it disrupts the entire society around it. “Those who

are most affected by civil war,” says Renner, “are those who have no say whether or not there should be

a war,” (ibid). This identification largely shadows the variables briefly mentioned above. It is through

fear of having one’s basic human rights violated that one may be displaced; it is through force that one

is required to abandon his or her village and family and given the command to shoot; lastly, it is through

necessity that one leaves everything and everyone behind in the off -chance of surviving just another

Ample resource endowments can have negative economic consequences, as

countries grow overly dependent on these resources, allocate inadequate

capital and labor to other sectors—agriculture, manufacturing, and

services—and underinvest in critical social areas such as education and

health. The result is a failure to diversify the economy and to stimulate

innovation and the development of human skills

Anatomy of Resource Wars, Michael Renner

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day. It is inarguably the lack of proper government and their governance that leads to these

displacement events – and by extension, what ultimately leads to civil war.

There are generally three (3) recognized ideas that society considers being the root causes of a

civil war. “Those on the political right tend to assume that it is due to long-standing ethnic and religious

hatreds…political center tend to assume that it is due to a lack of democracy… and those on the political

left tend to assume that it is due to economic inequalities,” (Collier). However, when looking at any

available evidence, not one of these three aforementioned explanations may illustrate any strong cause

and effect relation, which is what leads to the observation that modern civil war is heavily concentrated

in the poorest of countries. There exists a cyclical illness that war is directly correlated and causal to

increasing poverty amongst a nation as a whole; but moreover, it is that very poverty that increases the

likelihood of a civil war, ergo producing what may be referred to as a Conflict Trap.

The Conflict Trap

As may have been deduced thus far, civil war is incredibly destructive for any economy. So much

so that civil war is often viewed as economic development in reverse (Collier). Similar to the Resource

Conflict Model presented at the beginning of this research paper, the conflict trap is founded upon the

ideas that there is a ceased production in beneficial industries – such as education, agricultural, etc. –

and an increase in the production of war driven tools – guns, ammo, soldiers, and destruction for

instance. Numerically speaking, during times of conflict in developing countries, this causes a double

loss: once from the loss of what the revenue and resources had been previously contributing towards,

and two to the loss from the damage that is being inflicted from the destructive production of

weaponry.

During a war, major targets for military operations include significant structures such as

telecommunications, roads and bridges, airports, and ports. As a by-product of doing so, public health,

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in essence, disappears. Public health in this particular interpretation, of course, refers to the availability

of food, water, and basic medications. Subsequently, mortality rates begin to spike. These incidences

affect those who are not directly involved in the way – the innocent bystanders and civilians that had

been mentioned earlier. In 2005, the infant mortality rate had been estimated at 187.49 per 1,000

births, making it the highest in the world (Mobekk).

In terms of direct investment, be it domestic or foreign, individuals no longer find it beneficial to

participate because of the fear of displacement, destruction, and overall economic structural instability.

What ultimately occurs from this lack of investment, is a decrease in GDP growth. In slight relation to

this element, is the idea of a money vacuum. A money vacuum implies that there is an external, or

foreign, investment opportunity that is promising a far safer investment for those who are still willing to

take the risk; yet, this is largely done abroad further slowing the economic activity of the nation

experiencing civil war conflict. Graphically represented as Figure 2 under the appendix section of this

paper, is the GDP per capita before and after a civil war for six distinct countries. “During peacetime, the

average developing country with less than US$3,000 per capita gross domestic product in 1995, spends

about 2.8% of GDP on the military. During the civil war, this increases to 5%,” (ibid). This increase in

military expenditure will likely be withdrawn from any budget expected to fulfill public health needs,

which may also relate to public infrastructure, such as roads, public schools and hospitals, and so forth.

While on the topic of long-term effects, there are many variables that need be considered as

direct and indirect costs of civil war. For instance, landmines or other military grade defensive measures,

are still embedded within the natural terrain which causes unimaginable impedance to efficient

activities. Moreover, the lasting effects of psychological damage done to those that had been directly

involved in civil war activities often include conditions such as Post Traumatic Stress Disorder, or PTSD.

This will inevitably cause not only a disturbance to the local community that may very well have little to

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no understanding of this disorder. Without proper care and treatment, those individuals affected may,

in some circumstances, become a liability to those around them.

It is important, however, to keep in mind that the conflict trap is “… a tendency, not an iron

law1. Middle-income countries have a lower probability of falling into it. A previous conflict seems to

increase the risk for middle-income countries by the same factor as for low-income countries,” but as

middle-income countries have a lower general risk, they systematically have better chances of

maintaining peace beyond the first post-conflict time era (ibid). Moreover, as may be inferred from

middle-income countries, there is an offered period of political stability, which alludes to a finding

discovering that in ten-year increments, there is a significant jump and drop in civil war probability. This

concept may be more clearly followed through the aid of a graphical representation labeled Figure 3

offered under the appendix.

This subsequently leads to the question, what outlets are there? There are in fact several

options discussed throughout the literature reviewing process: intervention, target and eliminate any

rebellion funding, and lastly, transparency. Albeit, linking these aforementioned elements all together is

the division of corruption.

Corruption & External Influences

It would not be wrong for individuals to be discontent with the current roles under which

corporations take to ensure the resources they purchase, and in some cases harvest, are done so under

proper quality controls. It may even be argued that several corporations, knowingly or not, play a

significant role in perpetuating the existence of illegal resource extraction and, through extension,

corrupted governance.

1 An iron law is a law or principle that is meant to be both indisputable and unavoidable.

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Trade of conflict diamonds amount to an aggregated billion dollar revenue stream for some

corporations within the Fine Jewelry industry. These profits had been reportedly used by warlords and

rebel figures to buy offensive and defensive arms during times of internal conflicts, such as in Angola;

and where one war might end, even temporarily, the unruly existence of conflict diamonds still persists

today. For a clearer depiction, consider Fine Jewelry industry leader De Beers for instance.

De Beers currently holds the largest share of diamond ownership and distribution, amounting to

two-thirds of the world diamond supply (Johnson). The reason for this near monopoly is rooted in the

company’s history. De Beers was “… one of the first companies involved in the mining for diamonds in

Africa immediately following their discovery,” says Johnson, “…[De Beers founder] Cecil Rhodes had

completed his monopoly with the formation of a cartel, the London Diamond Syndicate, who were the

biggest diamond merchants of the time. His syndicate allowed him to perfectly match supply with

demand,” (ibid).

Nonetheless, establishing near monopolistic control over an industry that fails to establish a

growing demand is arguably nothing to fret about. It had not been until 1947 when the diamond market

transferred from an embellishment of royalty – to a symbol of love: A diamond is forever had

subsequently changed the market and demand forever. Directly following this event had been the surge

in demand for diamonds; ultimately leaving De Beers to expand its means of excavating and cultivating a

greater supply.

The documented diamond history of Sierra Leone is said to have begun in 1935 when De Beers

legally took complete control of the mining prospects in Sierra Leone for an extended period of 99-

years. Despite the assortment of legal measures taken, illegal smuggling of diamonds out of Sierra Leone

had inevitably occurred and largely clustered with Lebanese traders (ibid). It had been in the 1950s that

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the government of Sierra Leone had virtually been defeated, announcing to “foreign investors to provide

their own security for both their personnel and mines,” (ibid).

It had been through such extensive illegal smuggling that lead to the depletion of many financial

resources and ultimately to the government of Sierra Leone lessening the total distribution of its

influences and thus concentrating its presence in two particular regions: Kono and Freetown. Kono is

known informally as a diamond district while Freetown is equally known as the export center. The

increased presence of government figures within these two districts had fallaciously created an illegal

diamond pipeline between Sierra Leone and Liberia. It had been around these two key areas that violent

conflicts flourished, especially when rebellion group Revolutionary United Front (RUF) had become

aware that “…whoever controls the diamond mines controls Sierra Leone,” (ibid).

It has been the linear consequence of these events that had led to such catastrophic unfolding

of both economic and human wrongdoings. Under these influences, civil war perpetrators have

committed unimaginably heinous crimes against former man in such ways of rape, murder, and bodily

mutilation. In documented cases, it has been estimated that the civil strife ranging from 1991 to 1999

had claimed well over 75,000 lives, causing an additional half million to become refugees, and an

astounding 2.25 million person displacement (ibid).

Not soon enough has been the acknowledgment of first world countries of such events and their

effort to mitigate the dilemma. Stemming from this process was the introduction of the Kimberly

Process, under which a certification system is emplaced to assure a degree of monitoring a diamond’s

origin from the mine to the distributor. Moreover, the United States has taken measures to ensure

purity in origin and mining principles under the Clean Diamond Act, banning any diamonds that come

from an unknown origin. While good on paper, the two processes are far from resolving the conflict in

reality.

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The element that needs to be brought to the forefront of discussion is the monopolistic

allowance of De Beers diamond industry share. Had the diamond industry been a truly competitive

market, as De Beers had made a claim to on several occasions, conflict diamonds would have a great

adverse effect on the entirety of the market and would subsequently be dealt with. Moreover, in

observing any face-value legal contracts that De Beers had been a party of in diamond extraction, are –

in most instances, in effect from the nineteenth century with governments that are largely inexistent

today. It is this very instance that provided the foundation for misconstruction of land ownership and

right. Without such recognition and enforcement, future chaos is inevitably abound and brings forth the

vast importance of Property Rights and Enforcement principles.

Property Rights & Enforcement

Seemingly interconnected with resource dispute and economic conflict, is the relation of justly

enforced property rights. In many varying circumstances, it becomes difficult to abide by these

principles, often budding a series of disputes over rights to a land one possess, especially within nations

which there is such political instability, seen in either political corruption or lack of governance.

Typically “…property rights either are not well-defined or are costly to enforce…. Such as those reflected

in the resources regularly expended in litigation…. Rent and revenue-seeking activities stemming from

trade restrictions,” (Garfinkel).

Many disputes related to land ownership and its administration are founded in the lack of

enforcement. This is clearly illustrated by the actions of the Russian Parliament, where a vote has been

made in favor of land law for urban areas has been conducted, yet this has seemingly been inexistent in

terms of implementation. On the other hand, the “…hopeless conflict of too many contradictory laws,

based on different legal traditions have not been resolved…” by many historically rich nations such as

China and India (ibid). Budding from these ineffective principles is a threat to a nation’s social stability as

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well as its economic growth in the future. As may be deduced thus far, “…from civil wars, to

distributional conflict, to the private appropriation of land, insecurity and conflict are associated with

large costs,” be those costs direct or indirect, individual or systematic (ibid).

Prior to the discovery of consequences associated with improper land ownership and its linked

impacts on the economic status of a nation, it is important to briefly discuss the intended

interpretations and results of land ownership confusion. Such confusion of land ownership insecurity,

and thereby direct and indirect costs, may occur in perhaps two all-encompassing categories: domestic

and interstate. Furthermore, I will ask the reader to consider primarily the indirect costs of resource

extraction whilst reading this section, of which are presented as an array of environment degradation

variables.

Environmental Degradation

Throughout the mid-1990s, the Kenyan economy had experienced an impressive growth just shy

of 5%; particularly since economic growth had been calculated as one-tenth of the 1995 growth just a

few years earlier in 1992 (Osano). It may have been common practice to conclude that the economic

performance foretold a positive picture of the growth and prospects of the country, yet – when one

looks more closely – there are several elements that should raise concern.

While economically growing, environmental degradation and pollution seem to have been

growing at a similar rate.

“Forest area has declined, wetlands have decreased and wildlife numbers have fallen.

Water and land shortages are widespread, other renewable and non-renewable

natural resources are being rapidly depleted. We also see a growing use of toxic

chemicals and discharge of waste and effluent into the soil, water and air.” – Osano

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This analysis and acknowledgment leads to the conclusion that Kenya’s natural resource base is running

dry. The takeaway point is that environmental degradation is not a topic to scoff at, even for the

thickheaded approach of it’s somebody else’s problem, as there are grave economic consequences in

future costs and growth.

Remaining with the study of Kenya, in observing the natural resources they have available, it

becomes clearer what economic activity may be linked with the country. First and foremost, are an

abundance of raw materials such as land, water, minerals, and timber. What is important to note under

this discovery, is that all of the country’s primary excavated materials are prone to ceased production if

contamination or environmental degradation occurs: land becomes clustered, faulty, and dead; water

becomes toxic, killing any sources of life within such water while also effecting those persons and

animals that consume it; minerals are often directly associated with mining, which displaces individuals

as well as often voiding any future agricultural activities on that land if it had been feasible initially;

lastly, lumber being a renewable resource is still an resource that takes years for maturity and by

extension, an abundance of other natural resources such as water and nutrient dense soil, to sustain

healthy growth.

Outlined in Figure 4 in the appendix, is that the total economic worth of a given resource is far

greater than the mere direct outputs the resource generates for production and consumption. For

instance, many (if not all) environmental resources provide to some extent an ecological good and

service for another; this may be done through means of flood control, carbon appropriation, and/or

climate control. Depleting such natural resources through means of environmental degradation will

inevitably eliminate the direct and indirect use and values of such resources.

As may be alluded to, the decline in the availability of resources, and, therefore, environmental

quality, impacts economic activities through the decline of the mere quantity of goods and services

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available for long-term production and consumerism. “We see a downward spiral of economic

opportunities,” says Lucy Emerton, environmental economist representative of African Wildlife

Foundation, “…as the environment becomes more and more degraded [there are] implications for both

economic efficiency… and equity,” (Emerton).

Finally, to illustrate the direct and indirect costs of environmental degradation, one must also

note that these following elements over time seemingly build upon one another, consequently

becoming increasingly worse as no preventative measures are taken:

1. Direct economic costs in terms of production and consumption opportunities

foregone

2. Direct economic costs in terms of preventative expenditure

3. Direct economic costs in terms of replacement cost, and

4. Indirect economic costs to other production and consumption activities

Firstly, as naturally occurring environmental resources decline in quantity, and to a certain degree

quality when considering the rate at which use exceeds natural regeneration, the supply drops

significantly. This, in turn, has a direct effect on the ability to produce, which consequently has a

declining effect on supply.

Secondly, as a result of condition one, a decline in ecological services is apparent. One direct cost of

such an event, are the projects partaken to prevent. For example, soil erosion: a variable that would

likely not need to be tallied had proper land management been considered.

Third, I would ask the reader to consider deforestation as a prime example: Deforestation “make s it

necessary to produce an alternative, non-wood sources of fuel and construction materials and at the

same time to replace some of the environmental function of forests,” such as downstream flood control

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infrastructure (ibid). This may lead to a plethora of direct and indirect costs in and of itself, all of which

may have been avoided had initial cautions been taken.

Lastly, as environmental resources decline, there are wide-spread effects on various arrays of

production and consumption, and while the very same activities do not depend directly on a particular

environmental resource. For example, bio-engineered agricultural seed products that benefit humans,

yet harm vast numbers of birds and small animals disrupt the eco-system which may in turn disrupt a

larger element that we as humans depend upon; ultimately, we are only providing ourselves with a

disservice in the long-run. As we are becoming increasingly self-destructive for temporary self-gain, a

question poses itself for the masses: Who is to speak out and take a stand for those who will not or

cannot.

Public Awareness

Public awareness of arguably any social or economic conflict is of extensive importance and is

often the preliminary step in the process of mitigation. Where it may become a predominantly known

element in the domestic sense, often reaching awareness of those directly affected, the spread of

acknowledgment must go beyond such constricted boarders. To reach international recognition and

concern, ergo initiating a sense of indirect affection, is the ultimate goal for conflict recognition. The

primary problem in doing so is the physical action of speaking out and having it heard everywhere.

It is through the aid of Non-Governmental Organizations (NGOs) that undeniably facilitates this

process of mass-publication. In the following sections, I will explain the fundamental background and

essence of these NGOs, provide substantially greater detail on the importance of their existence, the

forms to which an NGO may take, and lastly illustrating the accountability of these organizations. It is

through this discussion and understanding that I hope to implement the current measures of what

processes are being done to mitigate these nations experiencing civil conflict.

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The How, What, and Why of NGOs

As I had briefly mentioned earlier, an organization claiming to be an NGO is, in e ffect, calling

itself a Non-Governmental Organization in the most literal sense. However, if one were to consider the

current global market, there are plenty of organizations that are Non-Governmental Organizations, and

such a statement wouldn’t be incorrect; however, it is because of this very reason, and the tax benefits

associated with being labeled as an NGO, there has been many consequential in-depth investigations in

the search for fraud. Currently in effect are two primary categories of NGOs: NGO in the traditional

sense, henceforth referred to simply as NGO, and the newer .NGO campaign. It is important to note that

a member of one category may apply for membership or recognition as/under the other. However,

there are variances in the criteria to which mandate what category you may want to be

member/organizer of.

There are of course many benefits labeling oneself as an NGO. Most recognized, are tax

exemptions, including “…the payment of any other tax or duty levied by the government,” in addition to

any person who makes a valid donation to be eligible to have the identical amount deducted from their

income tax payment. However, the criteria to label oneself a traditional NGO is, for the most part, quite

feasible; in fact, there are only eleven (11) elements that one must provide documented proof of to gain

proper documentation indicating NGO status:

1. Proposed name and address of NGO

2. Name, address and occupation of each director

and member

3. Resume or brief biography on each director and

member

4. A clear mission statement

5. Aims, Objects, and Purposes of the Organization

6. Organization Structure

7. Bylaws & Policies

8. Type of program of activities intended to carry

out

9. Projected financial statement

10. Full details of grants and grantors, and

11. Letters of support from established organization

that share similar interests and goals

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However, it is important to note that such criteria will inevitably differ on a per-country basis (Wango)2.

Alternatively, the secondary structure an NGO may take is through the confines of the .NGO

campaign – aimed at limiting and regressing the ill-willed organizations claiming to be of NGO status,

receiving donations and maliciously benefiting off of the kindness of others. As such, the .NGO campaign

had made their criteria, ergo eligibility, far more rigorous and mandated as may be discovered through a

brief overview of the following seven criteria.

Firstly, the organization must be fundamentally focused on acting on behalf of public interest.

This alludes to the organization directly or indirectly supporting such sectors as education, health,

environment, and/or human rights. It is the member base of the NGO community that works for the

good of man, supporting and preserving human and planet rights.

The second criterion is that the organization must be a non-profit focused entity. While many

traditional NGOs may engage in commercial-based activities and/or produce revenue in some sense or

another in support of their mission or goal, members of the .NGO user-base do not recognize profits or

retain any earnings.

Third, a member of the .NGO community must have strictly limited government influence.

Traditionally, many NGOs outside of the .NGO domain had an interest in interacting with governments

for funding purposes. As had been discussed, however, interaction and acceptance of any other

government or corporate entity often lead to that government or corporate entity having some

influence over the policies of the organization. This may be very harmful to the originally emplaced

policies and procedures that the .NGO had initially implemented. This criterion is largely reiterated

2 As there is a vast level of detail, advancing past the scope of this project, if the reader care to seek additional

information on establishing an NGO, I strongly encourage downloading the following link: http://www.wango.org/NGONews/July08/HowToStartAnNGO.pdf

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under the fourth criterion, which states that members of the .NGO community should not be political

parties or representative arms of any government; furthering the ideal that .NGO work is strictly

voluntary.

Fifthly, a member organization of the .NGO campaign must be able to fully and clearly illustrate

that they are in fact continually pursuing their stated missions on a regular basis. Moreover, the last two

elements, criteria six and seven, states that the .NGO must be both structured and lawful. This indicates

that members of the .NGO campaign must operate and function under the stated bylaws, code(s) of

conduct and governance structure. This seamlessly flows into the idea that the organizations must be

lawful while acting with integrity.

With a thorough understanding of the structural makeup of NGOs, we may now begin to discuss

the nature of a textbook NGO’s work, discovering what activities they partake in, how they partake in

them, why they do what they do, and what benefits occur because of their presence.

Models

In reality, the role of an NGO may be one or many. That is to say, the organization may aim to

divvy its resources without bias or prejudice, or may rather concentrate its resources on a single sector

and activity. It has become quite evident throughout an extensive literature review that NGOs are

generally categorical as per their primary resource expenditures. What I have found with consideration

of NGOs under American governance, is that they often embody one of three characteristics, or models:

Whistle-blowers, Lawmakers, and Service Supplier.

Whistle-blower labeled NGOs are indicative of the larger encompassing body devoted to Anti -

Corruption. This sector within the greater NGO environment has had a major development in the last

decade as per the protections for whistleblowers worldwide from a legal liability perspective. The

primary incentive behind Whistle-Blower NGOs is to sanction or advance the transparency of not only

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government but also corporate wrongdoings. A study conducted by PricewaterhouseCoopers had

concluded that “…fraud is on the rise and that strong protections for whistleblowers are the key to any

anti-corruption measures… the development of these principles for whistleblower legislation is the

turning point in the global fight against fraud and corruption because it puts teeth and substance into

international anti-corruption laws,” (PwC).

Lawmaker orientated NGOs are predominantly engaged with an array of legal-orientated

activities with particular emphasis on the passing of bills pertaining to civic participation, improvement

in the quality of governance, overcoming the democratic deficit and activities of the like. These are

unfathomably important as these organizations are, in at least in the best interest of doing so, providing

a voice on behalf of those who lack the necessary means to be heard. This is effortlessly linked as a

direct solution to the aforementioned difficulty in publishing awareness.

Thirdly are those NGOs with a primary interest in promoting, or mitigating, a cause through a

direct and personal involvement. Consider the Southern African NGO, Gender Links. The organization

promotes gender equality and justice across a 15-country wide region, and has been recognized as “a

small organization with large footprints,” (Sang). Where these organizations are unable to produce or

purchase all of the materials and products necessary to fulfill their goal, NGOs within this

characterization often call upon those to make charitable donations in return for being added to a

publicized and recognized supplier database.

Accountability

Lastly, it is worth very briefly discussing the role in which NGOs play in providing accountable

solutions to environmental, international, and public issues. It may be argued that, in its most

elementary interpretation “…NGOs are responding to… [a] democratic deficit by creating think tanks…

publishing critical work… [and] thereby providing space for more debate in the public sphere,”

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(Lehman). These goals set forth by the organizations, particularly referencing NGOs, cannot be carried

out by learning ethical rules by force of habit and developing more procedure. What is required is a

democratic structure that appropriates these ideals with authenticity – where such an authenticity

involves making these democratic values our own, thereby embodying the very principles of the

organization.

Concluding Thoughts

Throughout the various phases of orchestrating this article, my view on the developing world

had been undoubtedly transformed. Never truly investigating the matters that are brought forth on

media channels or sponsored advertisements seeking donations for non-profits – has been a disservice

at its most basic root. Strictly speaking, I have come to two extreme ends of thought when it comes to

the discussion of developing nations and their economies: emotionally driven comments and/or actions,

and those actions founded in the realm of logical analysis. Where I do not discredit those individuals for

their stance on the subject matter, I must wholeheartedly object to the extremes, and allocate for a

middle ground.

It had been my primary intention to illustrate the civil strife that is strangling these nations,

having a wide series of horrific direct and indirect costs – ranging from mismanagement of currency to

the violations of human rights. More unfortunate is the idea and validity behind the effects of the

discussed Conflict Trap. This is, and of itself, an argument stressing the importance of proper

government, strong governance, and essential necessity of NGOs.

At the root of civil and political strife, shattering both society and its economies, lies the lack of

proper property rights and their due enforcement. This is especially true for such developing nations

that rely upon the abundant pools of natural oil, the lush greenery of untouched forestry, or the

untapped stores of pristine waters. It is through improper enforcement and political regulation of such

21

industries and nations that allow for the mismanagement of extracting principles, which often result in

irreversible and catastrophically damaging outcomes, leading to a plethora of direct and indirect costs,

further stagnating the growth of that nation as a society and as an economy.

Lastly, only since the introduction of Non-Governmental Organizations have developing nations

begun to receive the publication and awareness necessary to spark a change within a single lifetime.

While it is difficult to suggest at this current stage where foreign aid is acceptable and where it is not, I

believe through sponsoring a truly insightful NGO, we may, at the very least, provide hope to some.

22

Appendix

Figure 1

23

Figure 2

Figure 3

24

Figure 4

25

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