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Cooperation Between the ADB and NGOs

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Approaches to the Bank's Cooperation with NGOs

A. Rationale for Policy Review

The rationale for cooperation with NGOs presented in the 1987 policy paper was the need to involve NGOs in Bank operations to more effectively address the basic needs of disadvantaged groups in DMCs and to support improved natural resource management and conservation activities. This rationale remains valid today. However, since 1987, the developmental needs of the Bank's Region have changed significantly and continue to change. Since 1987, the Bank's operations and strategic agenda have become significantly more complex, with an operational framework that combines support for growth-oriented development as well as human development, social development and environmental protection. Over the past decade, the character, capacity, and developmental role of the NGO sector have changed, with NGOs becoming much more significant actors in development processes. These factors have combined to create an environment in which the Bank has experienced significant expansion in the scope, volume and quality of its cooperation with NGOs. This cooperation has moved into operational areas and through operational modalities not envisaged in the 1987 paper. Reviews of Bank operations, such as through the Report of the Task Force on Improving Project Quality, have noted the more extensive involvement of NGOs in development in general and in Bank operations specifically. To ensure that its policy and approaches to cooperation with NGOs remain current, relevant, and effective, it is necessary that the Bank review its current relationships and program of cooperation with NGOs, and as necessary develop a new policy and new approaches to cooperation with NGOs consistent with current circumstances and realities.

B. Expanded Cooperation with NGOs

An expanded program of cooperation with NGOs in Bank operations should be pursued with a view to strengthening the effectiveness, sustainability, and quality of development services the Bank provides. The objective of the Bank's cooperation with NGOs would be, where appropriate, to work with NGOs to incorporate NGO experience, knowledge, and expertise into Bank operations, such that the development efforts the Bank undertakes would more effectively confront the issues and priorities reflected in the Bank's development agenda. Such an expanded program of cooperation is consistent with the current circumstances of development in the Bank's DMCs and the Bank's current strategic framework and strategic objectives. Such cooperation also would recognize the greater developmental role of NGOs.

It would be the objective of the Bank to cooperate with competent, experienced NGOs that have substantial knowledge in their fields of expertise, and with which cooperation would be appropriate and mutually beneficial, for the Bank, NGOs and governments. In project and programming work, the Bank's objective would be to cooperate with NGOs when such cooperation would support and contribute to the effectiveness and sustainability of operations. In policy development, it would be the Bank's objective to cooperate with NGOs toward the formulation of policies that are consistent with the Bank's mandate and that strengthen the Bank's development policy agenda. Many of the operations and approaches to operations reflected in the Bank's current Medium-Term Strategic Framework are areas in which NGOs have significant strengths, and in some cases, comparative advantages. Where desirable and appropriate, it would be the Bank's objective to promote government-NGO dialogue and cooperation in development efforts.

In many of its operations, the Bank already is realizing successful and effective cooperation with NGOs. Where effective cooperation has been realized, approaches employed should be formalized and, as appropriate, incorporated in the Bank's overall operational program and approaches. Where effective cooperation with NGOs can be established, appropriate operational programs and approaches should be identified and implemented. The collective experience of the Bank is leading toward an expanding set of best practices in NGO cooperation.

In its operations, the Bank recognizes that institutional development and capacity building support for the NGO sector in itself would be a development initiative. It would be in the Bank's interest to provide necessary and appropriate institutional and capacity building support to the NGOs, particularly at the local and national levels. Similarly, it would be in the Bank's interest to provide necessary and appropriate institutional development and capacity building support to DMC governments, toward the creation of a policy environment that would foster government-NGO relations and support NGO contributions to development processes. The Bank would not be a mediator in this regard, but a facilitator.

Given the range of NGOs that exists and with which the Bank interacts, it must be recognized that the Bank in fact has different kinds of NGO relationships. The relationship with an NGO engaged entirely in policy analysis, for example, would differ from the relationship with a community-based NGO engaged entirely in the delivery of development services. It would be necessary that the Bank develop mechanisms that recognize and support a range of NGO relationships. The Bank's policy and approaches to cooperation with NGOs must recognize the diversity of the NGO sector, and the fact that a single view of NGOs or a single approach to NGO cooperation will not be adequate.

Mechanisms for cooperation with NGOs will vary according to the type of NGO, the issue or interest in question, the specific kind of cooperation being considered, and the specific circumstances that exist in each case. Cooperation with NGOs will be affected especially by country-specific circumstances. Cooperation with NGOs in the Bank's operational activities would proceed as a part of or in parallel with other operational considerations, including the emerging process approach orientation of the Bank's operations. In any case, NGO input into Bank operations would have to be considered carefully, as would input from any other source.

In its country-level operations, it would be necessary that the Bank continue to be responsive to concerns of governments. Cooperation with NGOs in principle would be a dynamic process that encourages constructive relationships involving the Bank, governments and NGOs. At the same time, however, concerns and priorities of governments must be acknowledged. The fundamental relationship between the Bank and a government and the sovereignty of governments must be recognized. The ability of the Bank to work with governments and execute its development mandate must remain a priority.

Criteria for identification of NGOs with which the Bank would cooperate on the basis of mutual interest are important. Relevant criteria could include, among others, legal status, legitimacy, representativeness, responsibility, credibility, transparency, competence, and institutional capacity. It would be important that any criteria be applied objectively and transparently. It would be important that the Bank work to identify NGOs with which cooperation would be mutually desirable, as well as to identify NGOs with which cooperation would not be mutually constructive. As relevant and appropriate, governments would be consulted in identifying NGOs with which cooperation would be sought.

C. Areas for NGO Cooperation in Bank Operations

Three broad areas of cooperation with NGOs in Bank operations can be identified: (i) cooperation in loan and technical assistance activities, (ii) cooperation in programming and country-level work, and (iii) cooperation in policy development work. The scope of Bank-NGO cooperation that exists and that can be expected to emerge is significantly beyond the scope of Bank-NGO cooperation envisaged in the Bank's 1987 NGO policy paper.

1. Cooperation in Loan and Technical Assistance Activities

In loan and technical assistance activities, the Bank can benefit from knowledge that NGOs possess and expertise they have developed. Early in the project development process, effective NGOs can help identify, understand, and articulate the development problems and needs of beneficiary communities. Such input would help the Bank in identifying and designing relevant, effective, and appropriate solutions to development concerns, and in implementing these approaches. As well, NGO involvement can contribute to responsiveness, accountability, and transparency in project processes. In some cases, the Bank, as well as governments, can learn from NGO analysis of development issues.

Cooperation with NGOs can develop and enhance public awareness of development efforts and facilitate the participation of affected persons and communities in project design and implementation. Many NGOs are well placed to develop a framework for beneficiary participation and improve the delivery of project goods and services. NGOs may have particular abilities in aspects of development such as participatory project design, community mobilization, and community organization, and in capacity building at the grassroots or community levels. It is likely that operational NGOs especially would have a strong presence in a given project area and have strong rapport with beneficiary communities.

There can be opportunities for and direct benefits in cooperation with NGOs in project and technical assistance identification and design activities. Such involvement can contribute to ensuring that projects will address and meet the needs of intended beneficiaries. In some cases, existing NGO programs can serve as models for the design of larger projects. There may be scope for involving NGOs as consultants or information sources in project identification and design activities. NGOs can be involved in project processing activities such as environmental and social impact assessment work, in the development of involuntary resettlement and indigenous peoples development plans, in facilitating consultation and participatory activities involving target beneficiaries, and in helping affected persons and communities articulate their needs and desires. To be most effective in its impact, such involvement should take place as early as feasible in project and technical assistance identification and design.

Consultation with NGOs has become an increasingly regular feature of the Bank's project identification and design activities. Missions for project and technical assistance preparation and other activities early in the project development process more frequently are consulting with NGOs to gather information and to become aware of alternative views, whether or not NGOs are to be a part of the ensuing project or technical assistance. NGOs often can be sources of alternative perspectives on development questions, as well as new views on needs, desires, and perspectives of intended beneficiary communities, and modalities to be employed in loan projects and technical assistance. Dialogue and exchange of information with NGOs would strengthen cooperation with NGOs and would make such cooperation more effective. It would be necessary that NGOs understand Bank operations, as well as the Bank understanding NGO operations.

While operational NGOs usually will be most relevant to loan project and technical assistance activities, advocacy NGOs may have potential for involvement in loan project activities. Advocacy NGOs can represent groups and communities that otherwise do not participate in prevailing economic and political systems. Advocacy NGOs can be catalysts for collective action among the poor and disadvantaged. In all cases, flexibility and objectivity would be necessary, and such cooperation must be undertaken in the context of national policies and direction.

There is scope for cooperation with NGOs in loan project and technical assistance implementation. NGOs with sufficient capacity can be engaged as executing or implementing agencies or can be contracted to deliver specific project components or services. NGOs can implement or manage selected subcomponents of projects, and can be employed in community mobilization activities or in delivering project services to selected communities or populations. NGOs may have the capacity to provide training related to specific aspects of projects to beneficiaries. They can have the capacity to facilitate communication between project authorities, such as the Bank and governments, and intended beneficiaries. NGOs can serve as community organizers when a project depends on social mobilization, and as grassroots-level delivery agents of project benefits. NGOs may also have a role in monitoring loan project and technical assistance implementation.

There is scope for cooperation with NGOs in benefit monitoring and evaluation and in postevaluation activities. The same knowledge and perspectives that NGOs possess with regard to project identification, planning, and implementation can be employed in monitoring and postevaluation. Selected NGOs with the necessary technical expertise and professional orientation hold potential as evaluators in review of project implementation and in judging project results. There may be scope for involvement of NGOs in the development of evaluation criteria and setting terms of reference for specific evaluation efforts. In some projects, NGOs already are participating formally in project monitoring and are part of the project review process. Bank review, monitoring, and evaluation missions more frequently are contacting NGOs to gain their views and gather additional information.

Beyond cooperation with NGOs toward the strengthening of the effectiveness and impact of its loan and technical assistance activities, as appropriate, it would be in the Bank's interest to examine, identify and implement strategies for the strengthening of the overall contribution of NGOs to project- and technical assistance-based development processes, particularly at the local and national levels. Such institutional strengthening and capacity building support could address NGO operations specifically, as well as the institutions, structures and processes of governments that relate to NGO involvement in development initiatives and government-NGO cooperation, toward the creation of a mutually desirable environment that could support and enable government-NGO relations and NGO operations in national development programs.

It would be in the Bank's interest to continue to explore new approaches to cooperation with NGOs in its operations, including initiatives such as institutional strengthening and capacity development. It would be in the Bank's interest to explore other innovations, such as a facility or a fund through which financial support could be provided to NGOs supportive of Bank programming in its DMCs

Evaluation of NGO involvement in the Bank's project activities has produced examples of the value-added that NGOs can contribute to loan and technical assistance activities:

(i) Innovation. With their close knowledge of local communities and local knowledge, NGOs can identify new approaches and new models for specific development activities.

(ii) Local Accountability. NGO involvement in projects can help ensure that project components are implemented as envisaged and planned.

(iii) Responsiveness. NGOs can help ensure that projects are implemented in ways that respond to local needs.

(iv) Participation. NGOs can serve as bridges between project authorities and affected communities, as well as providing structures for participation.

(v) Sustainability. NGOs can help provide continuity in project work, especially when implementing agencies lack capacity or when staffing changes.

NGO contributions to loan and technical assistance activities are by no means limited to these examples.

Involvement of NGOs in loan and technical assistance activities would necessarily be within the context of the Bank's existing set of policies and procedures. Existing policies and practice relating to operational considerations such as information dissemination, governance, participation, consultation, etc., would govern one aspect of cooperation with NGOs. In the case of contractual relationships, with NGOs providing goods and services and receiving remuneration, of direct relevance would be policies such as Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers and Guidelines for Procurement Under Asian Development Bank Loans and the business practices that have emerged from these policies. In this second set of contractual relationships, it would be necessary that the relevant policies and practices be applied within the context of the specific circumstances and characteristics of NGOs.

2. Cooperation in Programming and Country-Level Work

There are opportunities for NGO participation in country-based processes such as country strategy studies and country programming that form the basis of the Bank's country-level operations. In addition to their role in the delivery of development services, NGOs can play a role in reflecting, explaining, and advancing the views, concerns, and needs of the groups and communities they represent. NGOs cannot replace or supersede governments in country work and country programming, but as appropriate and with government concurrence can complement existing processes and serve as additional sources of information and input. In that they are processes that precede loan project and technical assistance identification, NGOs are recognizing the importance of country strategy and programming work.

NGO involvement in country-level activities necessarily must be undertaken with due regard for national policies and priorities. At the same time, the Bank would do well to consider encouraging governments to recognize NGO input in country-level activities. In some countries, NGOs already are active participants in country-level processes.

There may be scope for NGO participation in country-level economic and sector work. NGOs are recognizing the significance of the Bank's country-level development strategies, particularly in the social and environmental sectors, and the influence these strategies have in national-level development planning and within the broader development community. Given their direct knowledge and unique perspectives, there could be scope for NGOs to provide meaningful contributions and help ensure that the voices of all stakeholders are reflected in the Bank's country-level strategies. Some NGOs have begun to express increasing interest in becoming involved in this aspect of Bank operations.

It already is the Bank's experience that in some countries, NGOs can make substantive contributions to country-level economic and sector work. Even when NGOs are not involved formally in roles such as consultants or researchers, input that NGOs can provide in a consultative or advisory role often can be important. Some NGOs may have the capacity to undertake research in areas related to country-level work.

In programming and country-level work, it would be important that the interests of governments and the fundamental relationship between the Bank and governments be kept in view. While benefits in involving NGOs in programming and country-level work may be apparent, such involvement would necessarily be consistent with the rights and responsibilities of governments in identifying and pursuing national interests.

3. Policy Cooperation

There is significant scope for NGO participation in the Bank's policy development activities. Policy-specific NGO consultations have been part of the process of developing recent policies on forestry, energy, population, involuntary resettlement, inspection function, and confidentiality and disclosure of information. Input received through consultation with NGOs has in most cases been constructive and valuable, and has reflected a variety of alternative views and perspectives. NGOs are being consulted in current policy development efforts, including the development of this policy on cooperation with NGOs.

General consultations with NGOs addressing a variety of issues have become a feature in the Bank's operations. NGO consultations are an important part of the Bank's Annual Meetings, with NGOs meeting with country delegations and with the Bank's Management and senior staff to pursue specific policy and project concerns. A variety of other consultation meetings are arranged throughout the year on an ad hoc basis to address specific policy and project concerns that arise. Bank missions to both DMCs and donor countries frequently meet with NGOs in consultations on broader issues of development and Bank operations, as well as issues that may relate to specific operational interests.

In addition to informal consultation and dialogue with NGOs and consultation undertaken to address specific issues, it would be necessary that the Bank identify mechanisms for regular policy-level consultation and dialogue between the Bank and NGOs. It would be necessary that such consultation and dialogue allow for effective two-way communication on policy-related topics, and be positive, proactive and mutually beneficial. Where it exists, it would be in the Bank's interest that such consultation and dialogue be maintained and as necessary strengthened; for example, the opportunity for consultation and dialogue at the Annual Meetings of the Board of Governors should be maintained and as appropriate strengthened. At the same time, an institutionalized mechanism for consultation and dialogue between the Bank and NGOs outside the structure of the Annual Meeting that could address specific issues should be established. Such consultation and dialogue would be held on a regular basis, be structured to appropriately represent both the Bank and the broad NGO community of the Bank's Region, and address a mutually agreeable agenda. As and when necessary and appropriate, governments could be involved in such consultation and dialogue.

On the country level, Resident Missions and Representative Offices are an important point of consultation and dialogue with NGOs and have assumed significant responsibilities in this regard. Resident missions each have established liaison points for cooperation with NGOs. Resident missions are important points of contact with regard to Bank operations, including the provision of information related to project and programming missions and information related to Bank operations in general. Headquarters would provide necessary technical support in this process of country-level cooperation with NGOs.

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