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G. S. PAPER II GOVERNANCE, SOCIAL JUSTICE
Topic: (9)
Develope!" p#oce$$e$ %!& "'e &evelope!" i!&$"#* "'e #ole o+
NGO$, SG$, v%#io$ -#op$ %!& %$$oci%"io!$, &o!o#$, c'%#i"ie$ %!&
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34. 5' '%ve 6p%#"icip%"io!7 %!& 6epo0e#e!"7 -%i!e& 0i&e c##e!c i! #ece!" &evelope!" li"e#%"#e8
Decades of development efforts have provoked a feeling of disenchantment with the conventional growth-oriented
strategy of development not prodcing the desired trickle-down effect
!he failres sensiti"ed the planners and administrators to the need for drawing on the indigenos knowledge system
of the local people
#nless people themselves participate$ the programmes administrated %y e&ternal agencies remain e&ogenos to the
rral commnity there%y affecting reslts
A people-centred vision is %eing advanced %y citi"en's organisations working to create an alternative world order
%ased on economic (stice$ environmental sta%ility and political inclsiveness
As the )man Development *eport +#,D 1/0 commented eople's participation is %ecoming the central isse of
or times3
3. So, i$ people p%#"icip%"io! % #ece!" &i$cove#8
4eople' as real actors in history have %een %roght forward %y the 4S%altern' school. easant resistances were s%tle
and effective peoples' actions against oppression. eople do act$ it is for s to appreciate it and mo%ilise it for
participatory people-centric movements. eople as development actors emerged long ago in the vision and action of
!agore at Shantiniketan and 5andhi at 6ardha. !agore e&perimented with people centred rral development in the
villages for the re(venation of rral arts and crafts and economy in general. 5andhi relied on the mo%ili"ation of
masses and their economic pliftment throgh the development of cottage and small-scale indstries
3. O. I -e" "'%" p%#"icip%"o# &evelope!" i$ ipo#"%!". 5'%" $'%pe$;+o#$ &oe$ i" "%e8
Anisr *ahman has identified the following different forms of commnity organisations representing collective action
%y the nderprivileged people to improve their socio-economic conditions
7irst$ there are grassroots organisations that are %asically economic in natre$ ndertaking income-generating
activities with the help of internal resorce mo%ili"ation spplemented %y resorce and knowledge spport from
otside
Second$ there are other organisations that emerge in 4pressre grop' activities. !hey resist e&ploitation or oppression
%y other grops$ assert economic$ social and hman rights inclding women's rights$ or demand services from the
p%lic agencies
!hird$ some of the organisations ndertake social and cltral activities in sch areas as health$ edcation$ cltre and
so on
7orth$ some aim at the promotion of holistic life %y way of activities that integrate spirital advancement with
economic and social development
7ifthly$ commnity organisations to promote ecologically oriented socio-economic life are also growing in many areas
sch as organic agricltre$ social forestry$ coastal fishing etc
Si&th$ participatory action research is %eing prsed %y some organisations to develop people's own thinking a%ot
their living conditions and environment
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9onitoring is %etter$ and sstaina%ility of the pro(ect is more likely even after the withdrawal of the e&ternal agent$ %e
it government or ,5: agency
!he commnity learns from its own involvement and from this point of view$ participation is a 2 way learning process
in which the administrator and the people %ecome co-learners
Active commnity participation helps re%ild commnity cohesion and installs a sense of dignity into the commnity.
eople gain in confidence and steadily emerge as real actors in the development process.
3=. I$ co!i" p%#"icip%"io! "'e!* "'e %!$0e# "o %ll &evelope!" p#o2le$8
;ritics of commnity participation arge participation has poplarity withot clarity and is s%(ect to growing
faddishness and a lot of lip service
Serios analysis of local commnity life reveals differentiation in terms of stats$ income and power. ;onflicts and
rivalries are not ncommon even among the poor and nderprivileged. !he romantic vision of frictionless$
harmonios commnity life does not match grond realities
ad-hoc approaches are the norm. !hestate in reality is not willing to part with power and to devolve resorces to local commnity grops. Also$ the
%reacrats and the technocrats have their own ways of %ringing a%ot efficient3 local development management.
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Still$ commnity participation is not$ in theory$ re(ected and decentralisation contines in an ad-hoc fashion with a
plrality of actors
articipatory mode ;haracteri"ed %y state's own initiative to create instittions of commnity participation to ensre
effective involvement at the grassroots level. !here are no lterior motives and genine poplar involvement is
ensred %y providing resorces to local %odies and sensiti"ing %reacracy throgh training and directives. 6ithin an
overall development planning framework$ the central$ regional and local development policies and activities are
harmoni"ed throgh positive political will and %reacratic spport
+7ollow-p ? 6hich of these modes is tre for India@ )ave we evolved from one mode to another or is there one
particlar mode more applica%le or does the state adopt different modes at different timesplaces0
Enough of participation, lets come to voluntary organisations:
3: 5'%" i$ % NGO8
According to the 6orld 8ank$ a ,on-governmental :rgani"ation +,5:0 is a private organi"ation that prses
activities to relieve sffering$ promote the interests of the poor$ protect the environment$ provide %asic social
services$ or ndertake commnity development3. In other words$ ,5:s are legally constitted organi"ations$ operate
independently from the government and are generally considered to %e non-state$ non-profit oriented grops who
prse prposes of p%lic interest3. !he primary o%(ective of ,5:s is to provide social (stice$ development and
hman rights. ,5:s are generally fnded totally or partly %y governments and they maintain their non-governmentalstats %y e&clding government representatives from mem%ership in the organi"ation.
In a democratic society$ it is the state that has the ltimate responsi%ility for shering development to its citi"ens. In
India$ throgh the progressive interpretation of the ;onstittion and its laws and policies$ the scope of development
has %een significantly %roadened to inclde not (st economic progress for citi"ens$ %t also promotion of social
(stice$ gender eBity$ inclsion$ citi"en's awareness$ empowerment and improved Bality of life. !o achieve this
holistic vision of development$ the state reBires the constrctive and colla%orative engagement of the civil society in
its varios developmental activities and programs. ,on-governmental organisations +,5:s0 as the operational arm of
the civil society therefore have an important role in the development processes.
3: 5'%" %#e "'e &i++e#e!" "pe$ o+ civil $ocie" o#-%!i$%"io!$8
1. ;ivil rights advocacy organi"ations to promote hman rights of specific social grops e.g. women$ migrants$
disa%led$ )IV$ se& workers$ Dalit people$ tri%al people$ and the likes.
2. ;ivil li%erties advocacy organi"ations to promote individal civil li%erties and hman rights of all citi"ens$ rather
than focsing on particlar social grop.
/. ;ommnity %ased organi"ations$ citi"en's grops$ farmers' cooperatives to increase citi"en's participation on p%lic
policy isses so as to improve the Bality of life in a particlar commnity.
=. 8siness and indstry cham%ers of commerce to promotion policies and practices on %siness.
C. a%or nions to promote the rights of employees and workers.
E. International peace and hman rights organi"ations to promote peace and hman rights.
F. 9edia$ commnication organi"ation to prodce$ disseminate$ or provide prodction facilities in one or more media
formsG it incldes television$ printing and radio.
H. ,ational resorces conservation and protection organi"ations to promote conservation of natral resorces$
inclding land$ water$ energy$ wildlife and plant resorces$ for p%lic se.
. rivate and p%lic fondations to promote development throgh grant- making and partnership.
1. Also the ;ivil society incldes - olitical artiesG *eligios :rgani"ationsG )osing cooperatives$ slm dwellers and
resident welfare associations.
3: 5'%" '%$ 2ee! "'e i!"e#%c"io! %!& #el%"io!$'ip 2e"0ee! "'e I!&i%! $"%"e %!& NGO$ lie8
In India the state policies have significantly inflenced the formation of ,5:s and their activities. !he government
sponsored and aided programmes provided financial assistance to ,5:s either as grants or as matching grants to
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spport the implementation of social development pro(ects. !he need for the involvement of volntary organisations
has %een acknowledged %y a nm%er of official committees dealing with development.
8alwant *ai 9ehta ;ommittee$ 1CF !oday in the implementation of the varios schemes of commnity
development$ more and more emphasis is laid on ,5:s and workers and on the principle that ltimately people's
own local organisations shold take over the entire work
*ral-#r%an *elationship ;ommittee$ 1EE ocal volntary organisations can %e very helpfl in mo%ili"ing poplar
spport and assistance of the people in the activities of local %ody. It is possi%le to maintain constant and closecontact with the people throgh these organisations
Ashok 9ehta ;ommittee :f the several volntary organisations engaged in rral welfare$ a few have helped the *Is
in preparation of area development plans$ condct feasi%ility stdies and cost%enefit analysis$ e&plore ways and
means to indce local participation in planning and implementation.
In the Si&th 7ive Jear lan +1H-1HC0$ the government identified new areas in which ,5:s as new actors cold
participate in development
!he Seventh 7ive Jear lan +1HC- 10$ envisioned a more active role for ,5:s as primary actors in the efforts
towards self-reliant commnities. !his was in tne with the participatory and empowerment ideologies$ which was
gaining crrency in the developmental discorse at that time
5overnment spport and encoragement for ,5:s contined in the
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,eed Society +1HCH0$ rathanaSama( +1HE=0$ SatyaShodhanSama( +1HF/0$ Arya Sama( +1HFC0$ the ,ational ;oncil for
6omen in India +1HFC0$ the Indian ,ational ;onference +1HHF0 etc. !he Society's *egistration Act +S*A0 was approved
in 1HE to confirm the legal stats of the growing %ody of non-governmental organi"ations.
In India$ it was the 1Fs which saw rapid growth in the formation of formally registered ,5:s and the process
contines to this day. 9ost ,5:s have created their respective thematic$ social grop and geographical priorities sch
as poverty alleviation$ commnity health$ edcation$ hosing$ hman rights$ child rights$ women's rights$ natral
resorce management$ water and sanitationG and to these ends they pt to practice a wide range of strategies and
approaches. rimarily$ their focs has %een on the search for alternatives to development thinking and practiceG
achieved throgh participatory research$ commnity capacity %ilding and creation of demonstra%le models. 6hen
we review some of the work done %y ,5:s over the past / decades$ we find that they have contri%ted greatly to
nation %ilding. 9any ,5:s have worked hard to inclde children with disa%ility in schools$ end caste- %ased stigma
and discrimination$ prevent child la%or and promote gender eBality reslting in women receiving eBal wages for
the same work compared to men. Dring natral calamities they have played an active role in relief and reha%ilitation
efforts$ in particlar$ providing psycho-social care and spport to the disaster affected children$ women and men.
,5:s have %een instrmental in the formation and capacity %ilding of farmers and prodcers' cooperatives and
women's self- help grops. Several ,5:s have worked hand in hand with the 5overnment to ensre that millions of
ot of school children are enrolled and contine their school edcation$ ths making the right to edcation a reality.
!he leprosy eradication programme was spearheaded %y ,5:s and today only residal leprosy remains in or
contry. ,5:s have implemented the KeevanDhara programme for creation of wells for safe drinking waterGpromoted commnity toilets for total sanitation$ and spported the p%lic health programs on immnisation and for
eliminating t%erclosis and malaria. !he mch cele%rated ,*
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It can %e noted that a great ma(ority of the ,5:s are small and a%ot three-forths of all ,5:s are rn entirely %y
volnteers. A%ot 1/ percent of the ,5:s have %etween 2 to C employeesG a%ot C percent have %etween E to 1
employees and only a%ot H.C percent ,5:s employ more than 1 people. According to a srvey condcted %y
society for articipatory *esearch in Asia +*IA0$ F/.= percent of ,5:s have one or no paid staff$ althogh across the
contry$ more than 1 million persons work as volnteers or paid staff at an ,5:. 9ore often ,5:s are registered as
trsts$ societies$ or as private limited non-profit companies$ nder Section- 2C of Indian ;ompanies Act$ 1CE. !hey
also en(oy income ta& e&emption. 7oreign contri%tions to non-profits are governed %y 7oreign ;ontri%tion
*eglation Act +7;*A0$ 1FE.
3: 5'%" %#e "'e e -ove#!%!ce c'%lle!-e$ +%ci!- NGO$8
In view of the emergence of a new paradigm of scaling p$ in which ,5:s are seen as catalysts of policy innovations
and social capitalG as creators of programmatic knowledge that can %e spn off and integrated into government and
market instittionsG and as %ilders of vi%rant and diverse civil societies$ it's imperative to critically analy"e the role of
,5:s in the process of development and nderstanding the challenges facing the Sector. !ransparency and
acconta%ility are key ingredients of 5overnance in the ,5: Sector as these determine operational efficiencies and
risk mitigation. :ver the years$ corporate sector has %een a%le to recogni"e and implement %est governance practices
throgh appropriate instittional framework. )owever$ the ,5: sector is yet to evolve any instittionali"ed
framework$ which cold potentially play an important role in overall development of the nation. ,5:s play an
increasingly active role in today's political and social arenas. ;ivil society organi"ations are increasing in nm%er all
over India. :f late$ some of the local and national ,5:s have %een fond involved in malpractices and acting
irresponsi%ly$ ths ndermining the credi%ility of civil society. It's a hge concern and poses a great challenge to the
development movement spearheaded %y ,5:s in the contry. !here is a hge flow of fnds into the non-
government organi"ation sector and this reBires prdence and good practices to maintain acconta%ility and
transparency to the %enefit of all stakeholders. Althogh$ ,5:s do internal aditing %t for more acconta%ility and
transparency$ it is advisa%le to go throgh e&ternal aditing also$ especially where p%lic fnds are involved. )ence$
isses of internal control mechanisms$ professionalism$ acconta%ility$ transparency and financial management mst
%e given impets. !he challenge is mltidimensional$ and is componded %y the4norganised' natre of the sector$
lack of reglatory frameworks and the fact that India %oasts of more than a million ,5:s of different roles$ strctres
and si"es. In particlar$ the Indian volntary sector rgently needs self-reglatory gidelines and transparency
mechanisms to increase the trst and awareness as to how the philanthropic fnds are %eing tilised. !his is a critical
challenge that creates a %arrier to raising fnds and capital for the sector. !he general lack of transparency in thefnctioning of a large proportion of ,5:s leads to aversion in donating fnds for charita%le cases since the general
p%lic is largely cynical a%ot the 4genineness' of the non-profit spirit of the sector. !he stringent governance
standards of an ,5: will facilitate the effective management and increase the acconta%ility to its stakeholders
inclding donors$ the government and the commnity. It is in the self-interest of the ,5:s to reali"e the fact that to
implement a strctre of 4corporate governance' principles wold provide the real vale to the stakeholders. Also$ this
wold ena%le to track the potentially d%ios sorces of fnding coming in for the volntary sector M an aspect which
has gained impets in the wake of the increased nm%er of terror attacks and e&tremist activities. *ecently$ this
#nion )ome 9inistry has identified some ,5:s as secrity threat to the contry. Sch secrity considerations have
nderscored the rising need of improving the governance practices in the Indian ,5:s and e&ercising %etter
reglatory mechanisms$ disclosre norms$ and management processes inclding financial management and %dgeting
systems as well. 9oreover$ in the larger interest going %eyond the secrity considerations$ the impets has to %e on
inclcating a cltre of inclding performance goals$ condcting financial and performance adits$ and reforms forincreasing the operational acconta%ility and transparency in the eyes of the p%lic$ volnteers$ donors and other
stakeholders.
S--e$"io!$:
!he implementation of a strategic framework is essentially important in the management of an ,5:. !he
endorsement of sch a framework %rings in professionalism and internal control mechanisms$ which frther makes
the organi"ation's performance more effective. Developing strategies also inclde esta%lishing a mechanism of
consistent monitoring of whether they are %eing implemented and linking the reslts to the organi"ation's goals.
!here is need to %olster p%lic confidence in the volntary sector %y opening it p to greater p%lic scrtiny. !he
5overnment will encorage ;entral and State level agencies to introdce norms for filing %asic docments in respect
of ,5:s$ which have %een receiving fnding %y 5overnment agencies and placing them in the p%lic domain +with
easy access throgh the internet0 in order to inclcate a spirit of p%lic oversight.
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%lic donation is an important sorce of fnds for the ,5: sector and one that can and mst increase s%stantially.
!a& incentives play a positive role in this process.!he 5overnment cold simplify and streamline the system for
granting income ta& e&emption stats to charita%le pro(ects nder the Income !a& Act. At the same time$ the
5overnment might consider tightening administrative and penal procedres to ensre that these incentives are not
missed %y paper charities for private financial gain.
!he 5overnment shold encorage all relevant ;entral and State 5overnment agencies to introdce pre-service and
in-service training modles on constrctive relations with the volntary sector. Sch agencies need to introdce time
%ond procedres for dealing with the V:s. !hese cold cover registration$ income ta& clearances$ financial
assistance$ etc. !here mst %e a formal systems for registering complaints and for redressing grievances of ,5:s.
!he 5overnment shold encorage setting p of Koint ;onsltative 5rops 7orms or Koint 9achineries of
government and volntary sector representatives$ %y relevant ;entral Departments and State 5overnments. It also
needs to encorage district administrations$ district planning %odies$ district rral development agencies$
"illaparishads and local governments to do so. !hese grops cold %e permanent forms with the e&plicit mandate to
share ideas$ views and information and to identify opportnities and mechanisms of working together. !he
5overnment also might introdce sita%le mechanisms for involving a wide cross-section of the volntary sector in
these 5rops7orms.
Si!- Up:
6e are entering into an important phase where the 12th five year plan is %eing worked ot and there are many
targets that the government intends to achieve with the active colla%oration of V:s. !herefore$ it is important to
condct an effective review or report card of the ,ational olicy with specific recommendations. !hese
recommendations cold %ecome an agenda for all Volntary :rgani"ations$ lanning ;ommission$ state governments
and national 9inistries.
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rearers$ salt workers$ gm collectors$ cooks and vendors with the primary o%(ective of +a0 increasing their income and
assetsG +%0 enhancing their food and ntritional standardsG and +c0 increasing their organisational and leadership
strength. !he overall intention was to organise women for fll employment. In order to %roaden their access to
market and technical inpts$ these primary associations were encoraged to form federations like the 5(arat State
9ahila S
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SIDI:
Small Indstries Development 8ank of India +SID8I0 lanched its micro finance programme on a pilot %asis in 1=
sing the ,5: 97I model of credit delivery wherein sch instittions were sed as financial intermediaries for
delivering credit to the poor and nreached$ mainly women. earning from the e&perience of the pilot phase$ SID8I
reoriented and pscaled its micro finance programme in 1. A specialised department vi". 4SID8I 7ondation for
9icro ;redit' +S79;0 was set p with the mission to create a national network of strong$ via%le and sstaina%le 9icro
7inance Instittions +97Is0 from the informal and formal financial sectors. S79; serves as an ape& wholesaler for
micro finance in India providing a complete range of financial and non-financial services to the 97Is so as to facilitate
their development into financially sstaina%le entities$ %esides developing a network of service providers and
advocating for appropriate policy framework for the sector. S79; is implementing the ,ational 9icro 7inance
Spport rogramme +,97S0. !he overall goal of ,97S is to %ring a%ot s%stantial poverty elimination and
redced vlnera%ility in India amongst sers of micro-finance services$ particlarly women.
P#iv%"e I!i"i%"ive$:
!hogh$ government efforts have played a ma(or role in advancing the S)5 movement in the contry$ there have
%een a large nm%er of volntary organisations +,5:s0 which too have facilitated and assisted S)5s in organi"ing
savings and credit in different parts of India. S
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immova%le property$ sch migrant workers do not have any formal docment to prove their domicile in the city. 8t
the overall economic and social well-%eing of the city is closely linked with the condition of this section of the city
dwellers. In the a%sence of any docmentary proof$ it appears that this class of people do not have access to
organised financial services. As per the e&isting stattory provisions$ ,A8A*D's mandate is to provide micro-finance
facilities only to rral and semi-r%an areas. 8ranches of the mainstream 8anks too$ thogh$ eBipped with
manpower and technology$ are not keen to service this sector.
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A*;-2 has made the following recommendations
!he 9icro 7inancial Sector +Development and *eglation0 8ill$ 2F needs to %e amended to inclde the following
sggestions-
i. !he scope of 9icro-finance Services shold %e s%stantially widened to cover credit savings$ insrance$ pension
services$ money transfer$ isse discont of warehose receipts and ftre option contracts for agricltral
commodities and forest prodce.
ii. !he activities of Section 2C ;ompanies to the e&tent they concern micro-financial services as descri%ed nder the
proposed 8ill shold also %e %roght nder the prview of this legislation. )owever$ for their management and other
fnctions$ they will contine to %e governed %y the provisions of the ;ompanies Act.
iii. !he isse of interest rate charged %y the 97Is shold %e left to the *eglatory Athority which is %eing created
nder the proposed 8ill.
iv. It shold %e ensred that if 97Is are allowed to handle thrift savings and money transfer services$ they wold do
so only as %siness correspondents of commercial 8anks.
REERENCES:
Mohit Bhattacharya- Social Theory and Development Administration ARC-2 Report 9- Social Capital Yojana Nov 2!"" iss#e on N$%s
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All rights are reserved. No part of this document may be reproduced, stored in a retrieval system ortransmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise,
without prior permission of Vision IAS