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8 governance watch May-June 2012 May-June 2012 governa

cover story

One of the noticeable strengths of

Indias democracy are its Non-Governmental Organisations

(NGOs), a voluntary action move-

ment which is all encompassing in

both quality and quantity. NGOs

are firmly embedded in the coun-

trys socio-economic life. They

are involved in a variety of act ivities from policy

analysis to school programmes, from part icipatory

natural resources management to activism, now even

to street-level activism. Many NGOs are involved in

capacity building and creating mass awareness in a

wide ra nge of fie lds: from c hildren rights, women

empowerment, old age, health, nutrition, human

rights, environment protection, disability, disarma-

ment issues, tribal protection, education, income

generation, rural issues, farmers, Dalit and minority

issues, disaster, advocacy, corruption, governance,transparency and integrated development you

name it. The NGO sec-

tor is robust in its truest

sense.

India has more than

43,000 registered NGOs

under the Foreign Con-

tribution Regulation Act

(FCRA), a number that

ranks among the highest

in the world. While there

have been controversies

about just how much

regulation the voluntary

sector requires and ques-

tions have been raised on

its sources of funding, it

is also commonly acknowledged that the govern-ment cannot do every thing: there have to be non-

government actors who can take development plans

down to the masses because the country is so huge

and varied that you need outside help. So a sec-

tor which has seen untrammeled growth in the last

three decades or so, is now suddenly in the eye of

the storm after Prime Minister Manmohan Singh

accused US-backed NGOs of fueling protests against

nuclear reactors in Tamil Nadus Kudankulam, lead-

ing to an outcry.

The question that needs answering is this: is the

Indian government tightening its noose around

NGOs? According to well placed sources, the govern-

ment is actively working on a blue print to regulate

the NGO sector. It is examining a Pla nning Commis-

sion proposal to bring the voluntary sector under

the ambit of the RTI Act. The ostensible aim is to

make this vast sector of civil society activists, who

receive public funds, more accountable and trans-

parent. The crackdown, it would appear, has begun.

The government has issued show cause notices to

21,000 NGOs out of total 43,033 that are registered,

which it says are not complying wit h its new policy

and action is being taken for cancellation of theirregistration certificates after examining their replies.

Union home secretary R.K.Singh, explaining the gov-

ernment clampdown in a January 2012 report, has

noted that while it is not proper to make sweeping

generalisations, it is necessary to note that the NGO

sector in India is vulnerable to the risks of money

laundering and terrorist financing.

Therefore, necessary steps for rigorous e

ment as well as coordination with countries

enforcement will continue. The Planning Co

sion has even suggested the creation of a se

ministry of voluntary affairs and an apex b

bring all NGOs under one umbrella. Says Ca

Bernard, member of the Sisters of the Cross

Chavanod, France, I think the governmentbind and it seems not to trust itself and this

in its relation to other institutions, including

It is certainly not democratic to regulate NG

ways we hear it reported in the media an d

wise. It is control not regulation. The need t

partnership and dialogue. The move agains

is considered surprising, considering the c

Sonia Gandhi-managed National Advisory C

(NAC) which includes a clutch of some of th

reputed voluntary activists in the country like

Roy, Deep Joshi, Madhav Gadgil and Mirai C

jee, coordinator of SEWA, Ahmedabad. Man

Singh in an i nterview to Science magazi

quoted as saying that the Atomic energy prog

has got into problems because these NGOs,

I think based in the US, dont appreciate th

for our country to increase energy supply, re

to the protests against Kudankulam nuclear station whose launch has been halted by pro

raising safety concerns.

Dipayan, a Kolkata-based environmental a

chooses his words carefully. I believe, we a

not that empowered to lodge a protest unle

ported by any external agency (in this case Am

NGOs) else locals would have also raised their

Activists say noto the Kudanku-lam NuclearPower Plant anda banner askingpeople whetherthey are awareof their humanrights (far left)

NGOs iN iNdia areOpeN tO risks Of mONeylauNderiNG aNd terrOrfiNaNciNG r.k.siNGh,uNiON hOme secretary

the NGOsectOr iN

iNdia isrObust aNd

there aremOre thaN

43,000reGistered

bOdieswOrkiNG

Photo:

AjitKrishnA


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10 governance watch May-June 2012 May-June 2012 governan

cover story

for debating uranium

mining in Porkut area,

Nongri in West Khasi

Hills or in Yodogawa

mines of Jharkhand.

To that extent the PM

is right, but would he

pay equal attention to

genuine issues raised

by civil societies in thedevelopment sector? I

think not, because the

issues have to suit the

political will.

According to the gov-

ernment report, NGOs

have received more

than Rs. one Lakh Crore

in the last 20 years as

foreign contribution

from various coun-

tries. Nearly 5o per cent

NGOs have not declared

the amount which they

have received from for-

eign donors.

Only 21,508 associations

out of 43,000 odd have sub-

mitted their returns while

7,275 have reported nil re-

ceipt of foreign contribution.

The report accepts that the

number of NGOs registered

under FCRA would be less

than 2 per cent of total num-

ber of NGOs.

While the reality is that In-

dia has no centralised data-

base on the number of NGOs

and the quantum of finance

involved in their operations, unofficial figures indicate

that there are over 40 lakh NGOs registered under the

Societies Registration Act, Trust Act and other such

enactments.

To be sure, India has a long distinguished traditionof voluntary action but post 1947, this practice has seen

a dip in the form of donations from non-institutional

communities due to urban migration and the beginning

of state welfare as policy. Before Independence, volun-

tary organisations imbued with Gandhian philosophy

involved themselves in the social welfare sector.

Notes a steering committee report of the Planning

Commission on the voluntary sector: It has been shaped

by two major influences: one rooted in indigenous tradi-

tions and value systems, and the other a product of the

interface between the Indian society and the western

world. Indian tr aditions and va lue-systems ar e rooted

in religion that prescribes a code of ethics for the indi-

vidual and t he principles gover ning socia l life.

Historically, philanthropy and individual acts of social

service have been the main forms of voluntary activ-

ity in India. Institutionalised social service activities

existed largely within the domain of religious institu-

tions: ashrams and maths among Hindus, Waqfs and

Khanqahs among Muslims and Gurudwaras and Deras

among Sikhs.

Notes the Planning Commission, The concept of

secular voluntary activity accelerated with the advent

of western, mainly British, influence in India. The work

of Christian missionaries in the field of education and

health care, especially in remote tribal areas, stood

out as examples of dedicated service to the poor, even

though the motivation may have been to win over thesepeople to Christianity.

The example of Christian missionary work exerted a

great influence on the new English educated elite that

emerged in the 18th and 19th centuries. The organised

form of charity and service to the poor practiced by

the Christian missionaries impressed many who tried

to emulate them.

mObilisiNGresOurces

fOr NGOs isNOt aN easy

task. theybaNk ON

iNterNalaNd

exterNalsOurces

The activities of the Brahmo

Samaj in Bengal, Arya Samaj

in north India and the Ra-

makrishna Mission in differ-

ent parts of the country are

noteworthy.

Resource mobilisation for

NGOs or in India today is

not an easy task. They man-

age it either from internal

sources or external. Earlier

funds were mobilised from

various non-inst itutional and

institutional sources.

Since the late 1960s, for-

eign funding to NGOs started

flowing from international private non-institutions and

global private institutions. Funding from the Lions Club,

International Red Cross Society and Amnesty Inter-

national come under this category. Similarly NGOs of

industrialised countries such as Oxfam-America, CARE,

Action Aid, U.K. became t he source of funding.

Solidarity groups and international trade unions areanother source of global funding from developed na-

tions. Their funding is mainly confined to issues relating

to human rights, women and child development and

environment. Most of the private institutional funding to

NGOs come from the international corporate bodies.

Institutional funding also comes to NGOs from bilat-

eral and multilateral donor agencies. Bilateral funding

includes aid from agencies, departments

tries of countries such as U.S.A., U.K., Japa

Denmark, Norway, Canada and Australia

leading country followed by Germany, Ital

and the United Kingdom among the bilatera

to India.

In addition, there are the multilateral

funding agencies who support grassroots act

ever their funding is very limited and is conf

to the major voluntary organistions in Ind

do not fall under the FCRA. Such Multilate

agencies include UN agencies like WHO, UN

CEF, FAO, UNFPA, UNDP, ILO, UNEP, the W

International Monetary Fund (IMF), Asia

ment Bank (ADB), African Development B

Islamic Development Bank (IDB), the Com

Development Corporation (CDC), the Arab

multilateral aid agencies. These agencies p

ing under the overall supervision and regul

government. There are many governmental

quasi governmental agencies like the Nation

fund, Central Social Welfare Board, Fami

Associations of India and CAPART which acAt the lo cal leve l, funds a re provided l arg

the district rural development agencies (D

parishads and panchayati raj institutions e

Interestingly, state funding of the volun

easily outstrips what they receive f rom exter

For example the ministry of social justice a

erment had supported 2,100 voluntary or

diGvijaysiNGh

Named aN

eurOpeaNNGO fOrbeiNG iN

tOuch withiNsurGeNts

iN theNOrth east

Children withPM Manmo-

han Singhduring thecampaign

Nine is Minein Delhi


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cover story

Name of the Association(Rs. inCrore)

World Vision of India, Tamil Nadu 208.94

Rural Development Trust, Andhra Pradesh 151.31

Shri Sevassubramania Nadar Educational Charitable Trust, Tamil Nadu 94.28

Believers Church India, Kerala 88.45

Caruna Bal Vikas, Tamil Nadu 82.60

Womens Development Trust, Andhra Pradesh 80.29

Sri Sri Jagadguru Shankaracharya, Karnataka 70.67

Action Aid, Karnataka 66.46

Bal Raksha Bharat, Delhi 66.03

SOS Childrens Village of India, Delhi 62.21

Love India Ministries, Kerala 62.04

Oxfam Trust, Delhi 58.80

Plan International Inc., Delhi 55.36

Tibetan Childrens Village, Himachal Pradesh 53.49

Missionaries of Charity, West Bengal 53.35

Sri Sathya Sai Central Trust, Andhra Pradesh 52.68

Population Services International, Delhi 49.53Aga Khan Foundation, Delhi 49.17

Gospel For Asia, Kerala 48.91

Bochasanwasi Akshar Purushottam Swaminarayan Sanstha, Gujarat 48.22

Compassion East India., West Bengal 48.19

Churchs Auxiliary For Social Action., Delhi 44.44

A.M.G. India International., Andhra Pradesh 44.30

Pratham Mumbai Education Initiative., Maharashtra 44.23

Caritas India., Delhi 43.58

to rn aoon (2009-10) There are manyexamples to show howsome of these foreign-funded NGOs areharmful for the nationand playing into foreignhands

Will the PM pay attentionto genuine issues raisedby civil societies in thedevelopment sector? Ithink not, because theissues have to suit thepolitical will

I think the governmentis in a bind and itseems not to trustitself and this reflectsin its relation to otherinstitutions, includingNGOs

Arundhati Ghosh

Dr. Dipayan

Dr. CatherineBernard

in the country and had released Rs 1,800 million

during 1999- 2000, as against Rs 1,110 million in

1998-99.

At present the total central government funding is

estimated to cross Rs 10 billion from Rs. 1,500 million

during the Seventh Five Year Plan period.

Despite their over-arching presence and solid work

on ground, a section of those opposed to NGOs have

levelled a variety of charges, which include voluntary

groups raising anti-development slogans in the nameof environmental or safety hazards like Kudankulam,

unfair criticism of security forces on human rights is-

sues, influencing voters and could be some instances,

be supporters of radical politics through funding.

In 2002, minister of state for external affairs Digvi-

jay Singh named an European NGO for its involvement

with underground in surgents in the Nort h East. In his

reply, Singh named Netherlands as one of the countries

used by radicals to further their anti-India activities,

besides Pakistan.

According to officia l records, Netherlan d-based NGOs

NCIV (Netherlands Council on Ingeneous Volk geist)

led by Leovander Vlist was said to be instrumental in

bringing various North Ea st insurgent groups under one

umbrella. In March this year, home minister P Chidam-

baram told the Rajya Sabha that some foreign funds

to NGOs were being diverted to terror groups. Writes

Rajiv Malhotra in Breaking India, a book co-authored

by him: Indias integrity is being undermined by three

global networks that have well-established operating

bases inside India: (i) Islamic radicalism linked to Paki-

stan, (ii) Maoists and Marxist radicals supported by

China via intermediaries such as Nepal, and (iii) Dra-

vidian and Da lit identity sep aratism bei ng fostered by

the West in the name of human rights.

The KudankulamNuclear Power Plant

All these str eams are being intel lectual ly and finan-

cially supported by foreign donors with vested inter-

ests. Former Indian diplomat Arundhati Ghose agrees.

There are many examples to show how some of these

foreign-funded NGOs are harmful for the nation and

playing into foreign ha nds. Her own nephew and NGO

activist Sanjay Ghosh was killed by the ULFA in Assam.

She wrote in an article, There is a veritable industry of

human rights organisations. These NGOs are powerful,

as they are given almost equal speaking time on any

subject on the agenda in the UN bodies. They offer their

platforms to wanted terrorists of India. Anoop Chetia ofULFA was given a chance to speak by a UK-based NGO

Liberation. There appears to be no dearth of funding

for these organisations.

There are, of course, some who are seriously con-

cerned with human rights violations if only by the

state and base their charge on well documented or

well researc hed situations.

There are NGOs that are funded, directly or indirectly,

by governments to project their own governments point

of view. There are groups

who regularly brief their

government representatives,

before and during meetings

and who sometimes act as

domestic pressure groups on

the government concerned to

raise a particular issue about

a particular country.

The government, keep-

ing in mind the large scale

growth of registered NGOs

along with quantum leaps

in the amount of foreign

contribution coupled with

a changed internal security

scenario and spread of use of communication and in-

formation technology, has gone in for changes in FCRA

which were ena cted in 1976 and was last a mended in

1984. Thus the Foreign Contribution (Regulation) Rules,

2011 was made under section 48 of FCRA, 2010. Strin-

gent provisions have been made in the FCRA, 2010, in

order to prevent misutilisation of foreign contributions.

States the ministry of home affairs, The focus of the

act is to ensure that the foreign contribution and foreign

hospitality is not utilised to affect or influence electoralpolitics, public servants, judges and other people work-

ing in important areas of national life like journalists,

printers and publishers of newspapers.

The Act also seeks to regulate flow of foreign funds to

voluntary orga nisations with the object ive of preventing

any possible diversion of such funds towards activities

detrimental to national interest and to ensure that in-

dividuals and organisations may function i

consistent with the values of the sovereign

republic. In addition, the new law has stipu

year validit y for all associations regis tered e

away with the concept of a permanent re

The act regulates acceptance of foreign

by certain individuals, which includes m

legislature, office-bearers of a political pa

government servants or employees of any c

while v isiting any countr y or ter ritory ou

Such individuals can receive foreign hosp

with the pr ior permission of the c entral goAccording to sources in the MHA

tral government has sent letters to sta

ments to take strict actions against

NGOs. The results have been immediate: the

a declining trend in foreign funds. While

21,508 associations had reported receipt of

tribution amounting to Rs. 10,337.53 crore

only 14,779 NGOs reported receipts of Rs 78

of foreign funds.

All told, the voluntar y movement itself h

some famous household names: Medha Pa

Setalvad, Sunderlal Bahuguna and Arundhat

are others who opt for a hard li fe and work

completely anonymous. They are the hero

NGOs arepOwerful,aNd GiveN

almOstequal

speakiNGtime

ON aNysubject at

the uN


5/8


cover story

The remark by the Prime Minister

of India to a magazine blaming

foreign NGOs for protests in In-

dia against nuclear reactors and

GM crops is diversionary and disturbing.

You cannot allege that the views a nd

concerns of local residents, are suspect

and that Indian citizens are manipulated

by foreign funds. The alleged involve-

ment of foreign NGOs/ or foreign funds

being used in the Kudankulam protests

is a red herring. Nuclear energy is a hotly

debated and contentious issue all over

the world. Even in countries like Japan,

where a significant percentage of the

energy comes from nuclear power, local

residents have strongly protested and

caused a review of what was considered

a successful nuclear energy programme.

To blame a foreign hand for the Ku-

dankulam protests is therefore to delib-

erately divert the issue.

Kudankulam is in fact an example

of a non-violent, democratic peoples

protest. The movement is demanding

a thorough review of the process of

sanction and running of nuclear power

plants. While there might be some for-

eign funded NGOs working on issues of

environmental awareness, the partici-pation of people and the extent of the

protests demonstrates how rooted and

indigenous it is. In fact, following the

Prime Ministers statement, there have

been unethical and uncalled for harass-

ment of NGOs by the State, who were in

no way involved in the protest.

To ascribe Indian opinion to a for-

eign hand is under estimating the in-

telligence and the participation of In-

dians in the democratic process. It is

unimaginable that the Prime Minister

of a big democratic country like India

should be worried about a small sum

of money going to some NGOs. The net

result is that even organisations engag-

ing in just development work are being

harassed by government agencies. It is

also an indication of the double stan-

dards of globalisation. Ironically, on the

nuclear issue, the biggest influence of

foreign funds and the foreign hand are

the pro- nuclear corporations, and the

US government which openly lobbied

with Indian political par ties in favour

of the controversial nuclear agreement.

Why cant international experience of

the anti- nuclear movement be a legiti-

mate part of the debate?

Currently, the nuclear regulatory

the Net result

is that eveN

OrGaNisatiONs

that eNGaGe iNpure develOpmeNt

wOrk are beiNG

harassed by

GOverNmeNt

aGeNcies

NOw NGOsbear the

burNtOf GOvt

aGeNcies

bill is trying to insert a secrecy clause

against the spirit of transparency and

the peoples right to information en-

shrined in the RTI Act and the Indian

Constitution. A similar clause is being

inserted in the bio technology regula-

tory bill. We would like to clarify, that

the Mazdoor Kisan Shakti Sangathan

(MKSS) of which I am a member is not

an NGO.

It is a peoples collective, that operates

on indigenous personal contributionsand our accounts are transparent and

accessible on our website for all to see.

We participate in peoples campaigns

and movements and see ourselves as

part of the non party political process.

Therefore, I am not conversant with

what the NGO sector thinks of the gov-

ernment attitude to them and vice versa.

The MKSS firmly believes in democratic

procedures and systems, the constitution

and the role of parliament in legislating.

At the same time, as a people movement,

we feel it is important to engage with

the State to bring issues to their atten-

tion, and do whatever we can to insist

on transparency, accountability and de-

livery of essential goods and services

from the government.

The only way to combat this alleged

misuse of funds is to insist on a regime

of transparency across the board, wheth-

er it is government spending, or NGO

spending, or even corporate investments,

which are claimed to be in national in-

terest. It is of critical importance that

complete transparency be maintained

by all the participants in this debate:

by the NGOs, by the Government, by

the movement, and most importantly

by the nuclear establishment.

I do feel that there has been a sys-

tematic clamping down of democratic

space available for dissent in this coun-

try. Everybody must be allowed to place

their views and opinions in the publicdomain, and debate the pros and cons of

each issue whether of nuclear energy

or GM crops, instead of subverting these

issues by raising red herrings.

(Roy is political and social activist

who founded and heads the Mazdoor

Kisan Shakti Sangathana.)

column aruna roy

The roots of volunteerism lie in

the very ethos of the Indian

tradition, culture and under-

standing. Every religious stream

regardless of its antiquity and regional

affiliations has embedded within its

fabric the elements of tolerance, peace,

service and values and these are the val-

ues and tenets which are broadly applied

by civil society organisations, including

the NGOs.

The growth, evolution and develop-

ment over the years of the NGOs has

been debated, contested and often ap-

preciated based on their relationship

with the establishment. Given the si ze

and role that NGOs play in Indian de-

velopment, the importance of the sector

has only grown due to grassroots inter-

vention and various initiatives to em-

power citizens. Lately the role of NGOs

in streamlining their public awareness

campaigns on a range of issues including

to sensitise public on fighting corruption,

environmental violations by the govern-

ment and corporate sector and fixing ac-

countability of the government to provide

effective delivery mechanisms to serve

people better, have been redefining the

state and NGO relationship in the recentpast. Some events following these do

not augur well for democratic traditions

and vibrant democracy that India is.

India currently is the worlds largest

capital, housing nearly million NGOs of

all types and kinds dotting every nook

and corner in the country and undertak-

ing various activities that range from

spreading awareness through advocacy,

delivery of essential services to fight-

ing against corruption, inefficiency of

the establishment, human rights and

whistle blowing a gainst the system.

Lately, NGOs nuanced stand against

the nuclear power plant in Tamil Nadu

seems to have sparked a fresh row on its

utility for people of the state dividing the

establishment and the NGOs starkly.

If one were to follow the contours of

the relationship between the establish-

ment and the NGOs over a long period

of time, one would notice a trend that is

hard to ignore. The trend has bee n one

of cosiness at times and at other times

adversarial. There are also instances

where the state collaborated with the

NGOs and an equal number of instances

where the t wo came face to face with

each other. Some examples where the

two came to collaborate include working

Getstate,

GrOupsON ONe

platfOrm

together on developmental

resources being contributed

and where the two sides c

face where the state was ch

the NGOs on the issue of

ment of FCRA in 2007 wh

decided to repeal the 1976

legislation that triggered

whole range of issues, th

again taking a nuanced sta

Some of such example

that the relationship betweand the NGOs has been dr

tual convenience and co-o

process many NGOs blame

having failed to have defin

tionship between the two,

the state has done vis-a-vi

rate sector. Over the years

been several attempts ma

about reconciliation betwe

and NGOs, but not succes

One of the best attempts m

direction has been from t

Commission, which on seve

provided both support and

the NGOs to leverage the re

further build up its cross sec

with other minist ries and

departments.

In March 2000, the Plann

sion was declared as a nod

the interface between state

2007, it came up with a na

on voluntary sector, which

tially written by senior NGO

als in the country.

The commission also st

society window to give sp

voices and take their inputs

and development of various

tric schemes. It also provid

a mechanism to enrol them

website of the Planning Co

be able to have access var

ment grants. Efforts were

volve civil society organisadeciding the plan documen

put them through the financ

enable them to articulate t

tives on development issue

budget.

(Pandey is executive

Global Compact Net

Over the years,

there have beeN

several attempts

made tOrecONcile the

state aNd NGOs,

but NO success

has beeN achieved

sO far

column Pooran chandra Pandey


6/8


cover story

You may think that the most cor-

rupt organisations in India be-

long to the government? But you

may be wrong, because some of

the biggest scammers in this country

could be the non-governmental organi-

sations, or NGOs, and it is all done in

the name of the poor of India.

In the old days, leaders of NGOs used

to work in the field, dressed simply, lived

in humble dwellings and had minimal

salaries, sufficient for their most essen-

tial needs. But today the new breed of

NGOs you meet in Del hi or Bombay, is

smartly dressed in jeans, he or she usu-

ally comes from Indias upper elite class,

carry the latest laptop and often travel

around in air conditioned cars. These

NGOs spend half of their time abroad,

in London, Paris, or New York, doing

smart presentations, with mesmerising

slides and excel spreadsheets, in front

of gullible westerners, always ready to

shed a tear for the poor downtrodden

Indians, so as to convince them to grant

more funds.

And what is usually all about? Seventy

per cent of the time woman empower-

ment, or uplifting the villagers. It isnowadays fashionable in India to high-

light the downtrodden Indian women

and their underprivileged place in

Indian society. But no country in the

world has granted such an important

place to women in its spirituality and

social ethos. And even today, behind

all appearances arranged marriages,

submission to men, preference of male

children in some rural areas (but girls

are loved in India like nowhere in the

world) - it can be safely said that very

often, from the poorest to the richest

classes, women control even if behind

the scenes a lot of the family affairs:

the education of their children (men in

India are often mamas boys), mon-

etary concerns, and husbands often refer

to them for important decisions.

Countries such as France or the US,

who are often preaching India on wom-

ens rights have never had a woman as

their top leader, whereas India had In-

dira Gandhi ruling with an iron hand for

nearly 20 years and proportionately they

have lesser number of MPs than India,

which is considering earmarking 33 per

cent of seats in Parliament for women,

a revolution in human history!

selliNGiNdias

pOvertytO make

bucks

But this obsession of NGOs with

women and village e mpowerment has

completely eclipsed the burning issue

that would require NGOs attention with

the tremendous amount of funds they

attract from abroad : afforestation, as

there are hardly any forest worth the

name left today in India. Take the Hi-

malayas for instance, and a region like

the lovely Kumaon hills. Less than 40

years ago, people in Almora, the ancient

capital of the Kumaons, still rememberthe beautiful blue cedars forests. Today,

there are no forests left around Al mora

- they were cut down i n the early 1970s

by contractors from the plains with the

full knowledge of the government - ex-

cept commercial pine forests, which

impoverish the soil and do not hold it

properly. Yet, there is terrible shortage of

water in Almora, the climate has

warmed-up considerably in the last 20

years and wood is fearfully expensive.

There are literally hundreds of NGOs

in the Kumaon hills, who are doing lots

of women empowerment, lots of vil-

lage uplifting, lots of weaving this and

weaving that but absolutely no tree

planting. Why? Because the others do

not do it, is the usual answer, when

you ask some of the NGOs or:because

it is too hard work. But the beauty of

the Kumaon hills around Almora is fast

vanishing: more and more hotels are

coming up, cutting more trees, like near

the Kassar Devi temple, above Almora,

where Vivekananda is supposed to have

meditated and which has been bought

to make into a resort by a non- resident

Muslim who is suspected to have links

with Ibrahim Dawood.

Most of the NGOs are funded by

western countries but what is not al-

ways known is that they often get the

bulk of their budgets from big Christian

organisations such as Christian Air or

Oxfam. Medha Patkar, for instance, hasto her credit the Right Livelihood Award,

the Rev. MA Thomas National Human

Rights Award and others awards.

(Gautier is editor-in-chief of the

Paris-based La Rev ue de

lInde (harmattan.fr) and the author of

A New History of India.)

it has becOme

fashiONable iN

iNdia tO hiGhliGht

the dOwNtrOddeNwOmeN aNd their

uNderprivileGed

place iN iNdiaN

sOciety whereas

this is NOt

column Franois Gautier

The Indian voluntary sector (or

the NGO sector) is emerging to

be a credible force in catalysing

social and economic growth,

particularly for masses at the bottom

of the economic pyramid. The potential

for this is apparent from the exper ience

of other developed economies. If India

is to achieve, as is predicted, the living

standards of the developed world by

2050, then the NGO sector would need

to play a critical role and must grow at

a pace much higher than that required

of the overall Indian economy. Within

India there are about 3.2 million regis-

tered NGOs, of which an e stimated 1.5

million are active.

ExistiNg LEgAL FRAmEwoRk

The right of all citizens to form associa-

tions or unions is guaranteed under Arti-

cle 19(1) (c) of the Constitution of India.

Charitable organisations usually take a

legal status in the form of a Trust, Soci-

ety, or non-profit company (also called

not-for-profit organisations or NGOs),

and are regulated by a variety of state

and central government agencies, laws

and authorities. The federal and statelaws (Many states also have their own

Public Trusts Acts) which are applicable

to charitable organisations.

Ngo sECtoR - shoRtComiNgs

iN thE PREsENt sEt-uP

By its nature the voluntary sector has

an extremely philanthropic side to it,

thus making it difficult for corporate-

like professionalism or profit-driven

accountability-standards to take prece-

dence over its core functions. However,

like other key sectors of India, the volun-

tary sector is also faced with imposing

evolutionary and market challenges.

Hence, issues of internal control mecha-

nisms, professionalism, accountability,

transparency and financial management

must be given impetus.

Evidently, there is both a need for a

pertinent shift in the manner of how the

voluntary sector views governance and

regulatory frameworks. Equally impor-

tant is to create competencies for better

risk management through operational

means and management procedures for

risk monitoring and risk mitigation. In

case of the NGOs, more so than for the

corporates, the risks often take the shape

column KPc rao

half Ofthe 3.2

milliONNGOs

active

of vulnerability to influen

dynamics ranging across:

a. Lack of or limited acce

sional management expert

b. Financial inefficiencies a

tices

c. Vested organised crime

interests

d. Extremism and terrorism

NEEd FoR good gov

PRACtiCEs

Therefore, the policy maker

top priority to regulate th

tor by introducing a regul

work to bring in the tr ans

accountability in this volu

Some of the areas where

ment needs to intervene a

below:

a. Financial prudence

b. Internal control mechan

c. Management efficiencie

d. Prone to money launde

tions

e. Internal control checks i

tions of NGOs

f. Misuse of the image of N

mistrust

g. Bridging the gap betwe

level management and gr

volunteers

h. Strategic leadership to pr

guidance

CoNCLusioN

Concerns have been raise

do not spend adequate amo

core objects. There isnt en

parency in the administr

trusts, resulting in dispro

high administrative expen

lated non-profit organsat

activities in the past have

the conduits for money la

organised crime. Global pr

growing on India to act urgenancial Action Task Force (

its report identified fund tr

foreign NPOs as one of the m

for terrorist financing in th

par with counterfeiting of cu

trafficking and extortion.

(Roa is an expert o

the vOluNtary

sectOr is alsO

faced with

impOsiNGevOlutiONary aNd

market

challeNGes heNce,

issues Of iNterNal

cONtrOl


7/8


cover story

Maja Daruwala, the execu-

tive director of the Com-monwealth Human Rights

Initiative, an international

NGO based in New Delhi, suggests

officials not to tar everyone with the

same brush. Excerpts:

Prime Minister Manmohan

Singh had blamed US-based

NGOs for engineering protes ts

against nuclear reactors in Koo-

dankulam. How do you see it?

When a Prime Minister speaks we

have to imagine that what is said is

well founded. But the claim is a very

specific one that indicates a delib-

erate move specifically US based

NGOs and a deliberate plan to

engineer. This notion having

been dropped into the public mind

as an accusation of ulterior moti-

vation and manipulat ion of policy

is left dangling without further

proof. The subtext is that there is

something wrong something de-

vious. But that is ha rdly t he is sue.

From senior chief executive officers

(CEOs) of countries to secretaries of

state, all try to influence policy. In-

ternational solidarity in doing so is

not forbidden or considered morally

wrong. It is just something that has

to be known and has to be legal. If

these two elements are there while

we may not approve of support from

foreigners, one should not ideally leta drop of poisonous innuendo drop

into public consciousness and then

let it remain there.

The thing is to follow through - also

openly and without victimisation or

targeting because one finds the ac-

tions of a or b inconvenient. After all

it is the Indian citizenry that is in

protest mode not some strangers in

the land.

What do you think about the

Indian governments policy to-

wards NGOs?

In recent times there has indeed

been a tightening across the board.

The new foreign contribution law and

the income tax law do disadvantage

to the sector. The sector feels it is

necessary to regulate just as one

would regulate the corporate sector

or the inflow of FDIs or even the in-

dividual inflow of funds. But there

is a subtle difference in regulation

and control. I think there is a ten-

dency to the latter. This is based on

a subterranean suspicion of the sec-

tor as being too vociferous too vocal

and proliferating and the tendency of

government to hold the cards in its

hands and use it when necessary.

The sector has been saying in re-

gard to foreign funds that it should be

regulated under the FEMA. You bring

money in through official means

it can be monitored and that is that;

good for the goose good for the gan-

der. The government has resolutelyrefused to do this, citing undesirable

activities and groups that do not use

the money for the purposes that they

should. Amongst a billion people the

activities of some will always look un-

desirable to others. Conversion in one

instance; but the issue is not whether

we like it or not. Individuals are free

to convert and be converted. The

issue: is the activity illegal? If an

activity is illegal the group or as-

sociation whether they are a politi-

cal party or they are an unregistered

association a gang of robbers or a

money laundering cartel, it doesnt

matter.

Their activities funded or not as-

sociated with an NGO name or not

are illegal. T he problem with the new

NGO law is that it is full of wide dis-

cretions and vaguely worded defini-

tion of political activities and cum-

bersome processes for registration.

All this combines to create asheathed weapon or a Damocles

sword hanging over everyone who

associates for a cause; any time a

government functionary wants to act

against someone he can and so it acts

in terrorism. This is bad whether it

applies to NGOs or corporates or in-

dividuals. Law must be clear, simple

with simple processes that ever yone

can comply with. Law must make it

easy to obey and to tend toward not

so difficult that people tend to illegal-

ity. When this law combines with the

new income tax code which makes it

hard for NGOs to sustain themselves

through honest activity, it does look

as if the government would like to

discourage the proliferation of civil

society groups.

On the other hand we do have a lotof groups and it is necessary to have a

system of regulation, but it just has to

be honest, fair and equally applicable

to all and encouraging of the constitu-

tional right to associate; associate here

in the country and across borders in

international solidarity of purpose.

The Govt has started

taking action against

non-reporting NGOs

registered under

FCRA.

Non-reporting is an of-

fence If the government

is being even handed,

giving time to compoundand right the wrongs if

there are any, then that

is fine. If the government

is doing it selectively be-

cause something an NGO

has done recently is not

to their liking, then even

though the government

has every right to check up

on the legality and com-

pliance of regulations by

that NGO, it does smack

of vindictiveness. Also the

degree of consequence

matters; if the infraction

by the NGO can be sorted

out with self correction

in a time frame, then let

that take place; if it merits

a penalty or fine let that

take place, but one need

not go for the harshest

punishment when for all these years

nothing has been done by government

to assist the NGO to comply. Were no-

tices sent? Were they disobeyed? And

so on. One would hope that the same

standard of compliance is required of

NGOs as of corporates at every level,

proprietorial shops and political par-

ties. Even handedness does tend to

create a sense amongst all that the

law should be obeyed.

There are allegations thatsome NGOs suppor t insur gent

groups i n the name of human

rights. Your comment.

Allegations are easy to bandy about

and they have the effect that is desired

of them. Repeat a lie several times

and folks will start believing it. We

have many such allegatio

turned into prejudice; ab

about minorities, about c

groups, I have no idea i

groups or right wing relig

or political extremists and

in the fringes of political

fronts to garner support.

is properly, regularly, traand honestly regulated i

easy to find out whethe

receiving support (not on

were illegal permissible o

absence of an India wide

works in st andard fashi

be ruled by allegation an

and not by law.

Do you think some

misusing foreign fu

their own purposes, w

against national inte

As stated above I have n

is a diverse country. The

a Hindu country; the Ma

another kind of rule; the C

allows both points of view

through the democratic

which one is anti- nati on

Also what exact ly is n

terest? Is a model of de

based on big dams more a

than one based on small d

know and dont want to c

this. You have to be very

or y is actually using fund

for an anti-national purp

channels and are in fact

for this. You dont only h

foreign funds to use the

national purposes. Suppo

millions gathered in the na

individual that is popul

public at large - what is theven if you dont like the

Suppose half the money

X gets i s from his congre

the other half is from fo

the world to promote som

thing like the world is fla

sin to eat wheat flour!

defiNitiON OfaNti-NatiONalNGO uNclear

law must be clear

with simple

prOcesses that

everyONe caN

cOmply with.

law must make it

easy fOr citizeNs

tO Obey aNd GO

fOward

interviewmaja daruwala


8/8


cover story

Sanjeev Nayyar, management

consultant, talks on the role

of NGOs. He says NGOs could

stimulate thought by undertak-

ing original, innovative research and

follow up action in a socio-cultural-

environmental-education context.

Pratham is a very successful NGO in

the education space.

They can become a useful vehicle f or

well off citizens to shar e their wealth,

those who are looking for a private not

government-sponsored effort. Or the

Friends of Tribal which runs a teacher

school in tribal areas. The problem aris-

es when NGOs become branches of the

global network. It is natural then that

their mission and thought would be in

line with that of the parent.

Does India have a policy on

NGOs?

The central government has no policy

towards NGOs. As long as NGOs are

sympathetic to and work in tandem

with the party in power, it is fine. The

minute they cross the Laxman Rekha,

the government comes down heavily,

for eg Koodankulam.

I call it a Laissez faire policy. Prime

Minister Manmohan Singh blamed US-

based NGOs for engineering protestsagainst nuclear reactors in Koodanku-

lam. Tamil Nadu and Chennai district

have been amongst the largest recipi-

ents of foreign money for many years

now. This was known to the govern-

ment all along. So why has the PMO

woken up to the perils of foreign mon-

ey now? Because foreign

money has been used to

delay commissioning the

Koodankulam nuclear

power plant? As we have

seen in the past, any policy

matter that has the words

nuclear, such as the Indo-

US Nuclear deal, makes

the Prime Minister un-

naturally assertive and

stubborn, notwithstand-

ing threats from UPA allies.

Do you think some NGOs are

misusing foreign funds in India

for their own purposes?

The top three donor countries for

many years have been USA, Germany,

and UK. Remittances from the U.S.

Between 2002-03 and 2009-10 have

nearly doubled (Rs 1,680 to Rs 3,106

crs). Spain and Italy are in dire eco-

nomic straits, Britain had a fiscal deficit

of 11 per cent of GDP in 2009-10 yet

they remitted over Rs 1,000 crores to

Indian NGOs per annum.

economic downturn, the w

tinued contributions to In

A reading of the top 15 do

cipients might provide som

There are reports that NGO

ing money and using it for a

purposes in Maoist-hit ar

and Kashmir, North Eas

insurgency-prone regions

The Ministry of Home A

grants approval to an NGO

of funds from abroad and th

collates audited receipts an

accounts, balance sheet et

The MHA scrutinises re

sure that contributions hav

used. During 2009-10, only

of foreign contribution rec

their annual returns withTherefore, the govern

not even report the actua

contributions received by N

are 38,000 odd registered

with MHA. Is it possible f

to monitor utilisation o

activities?

sOme GlObalNGOs waNt

tO partitiON

iNdia

GOvt wakestO the perils

Of fOreiGN

mONey

Rajiv Malhotra serves on the

board of governors of the India

Studies Programme at the in-

ternationally famed University

of Massachusetts and served as chair-

man for the Asian Studies Education

Committee of the state of New Jersey.

Besides his work, he has co-authored

Breaking India an inside account of

the role of global NGOs that is a must

read for the government officials who

have plans to make the whole business

of running NGOs more transparent.

What is the role of NGOs in

nation building in India and

worldwide?

NGOs play a very important role in

building nations and societies. The true

spirit of an NGO should be local com-

munity organisation for self-help, with

links to groups elsewhere only for large

projects. But this should not be driven

by foreign-based NGOs. India ought to

be self sufficient in the NGO sector or

else will outsource its sovereignty to

others.

Does the Indian government

have a policy on NGOs?

It does not do enough due diligence

on direct and indirect foreign funds. Itgets involved only after a problems is

at hand, like treating a heart patient

only after the attack and doing nothing

preventive.

Prime Minister Manmohan Singh

accused US-based NGOs for engineer-

ing protests against nuclear reactors in

Koodankulam.

It was good that the gov-

ernment finally woke up.

But why only in isolated

cases and why only after

it has happened?

Do you think some

NGOs are misusing

foreign funds?

Yes, my book, Breaking

India goes into detail. Its

not just the money, but the ideological

spin, anti-national training camps and

building foreign-inspired vote banks in

the countrys vulnerable sectors.

Some NGOs are diverting money

and using it for anti-national purposes

in Maoist areas, Jammu and Kashmir

other insurgency-prone regions. These

reports are true. But the problem is far

worse and no longer isolated to a few

places. You find this in the rich far mlands

of Punjab as well.

What about the new law?

Its a reporting requirement. Reports

of activities get slanted to make them

look benign. If the report says `educa-

tion or youth empowerment training ,

how does it indicate whether the educa-

tion is one filled with hatred towards

fellow Indians? How does it indicate

that youth training is aimed at promot-

ing separatist identities? These report-

ing requirements are easily fooled.

Any suggestions?

They should read my book and ap-

point a commission to start investiga-

tions. But that will be tough because

there are many spoiled brats.

The Indian government should put on

the table all diplomatic dealings with

western nations connected to NGOs and

set up its equivalent of the Ford Founda-

tion. Get these neo-rich billionaires tostart funding along the lines of what

the big Americans did for their country.

All foreign supported NGOs (including

churches and madrassas) should be de-

listed as minorities because they should

be classified as branch offices of foreign

MNCs. That is the way ahead.

interviewrajiv malhotra interviewsanjeev nayyar

as lONG as NGOs

wOrk iN taNdem

with the party iN

pOwer, it is fiNe.the miNute they

crOss the laxmaN

rekha, there is

trOuble ahead

fOr them

the GOverNmeNt

has NOt dONe

eNOuGh duediliGeNce ON

direct aNd

iNdirect fOreiGN

fuNdiNG aNd it is

daNGerOus

under scanner

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