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Governance: Sound Development Management :
Promoting the elements of good governance in Bank operations :
Participatory development processes
Cooperation with NGOs
NGOs offer borrowers and the Bank another possibility of engaging
civil society in project formulation and implementation. Small, nimble,
and with good local knowledge, NGOs can be effective and efficient
vehicles for mobilizing and reaching project beneficiaries. On the negative
side, there has been a proliferation of NGOs in recent times, and
some have political agenda. While their lack of formal structures
facilitates fast response times, it also implies some lack of accountability.
Many NGOs face financial constraints that limit continuity of their
program work. Also, by their nature, NGOs prefer to maintain their
own identity by staying within the informal sector. Still, the better-managed
NGOs can usefully assist in discharging some of the responsibilities
in Bank-financed projects. They can act as consultants, financial
intermediaries, contractors, or implementation monitors. In time, the
Bank may also consider ways of providing financial assistance to them,
where appropriate.26 The types of activities in which NGOs can be
especially helpful include poverty reduction, empowerment of marginal
groups, challenging gender discrimination, and delivering emergency
relief.
Box 6 shows some ways in which the Bank has sought to cooperate
with NGOs.
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The nongovernment organization (NGO)-Microcredit Project in the Philippines
(1988) sought to reduct poverty, particularly in rural areas, by supporting the
Government's Tulong sa Tao (Self-Employment Loan Assistance) Program. It financed
microenterprises and cottage industries using low technology and local raw materials.
The proceeds of the Bank loan were channelled to the intended beneficiaries through
selected NGOs that acted as credit intermediaries. In conjunction with the Project,
technical assistance (TA) was provided for (i) institutional strengthening and technical
guidance of self-help groups among the low-income poor, and (ii) institutional strengthening
of about 30 NGOs that were accredited under the Project (both for project
implementation purposes and to enhance their effectiveness in longer-term contribution
to poverty reduction in the country.) The Project covered six selected regions of
the country; Bank support to the Tulong Sa Tao was continued through the
Second NGO-Microcredit Project (1991), which extended the coverage nationwide.
In Bangladesh, a TA has been provided for ensuring closes involvement of NGOs
in the design and implementation of the Government's development projects. The
objectives of the TA are to establish effective mechanisms for Government-NGO
cooperation, strengthen the NGO Affairs Bureau, and provide assistance to NGOs. It
comprises four components: (i) institutional support for both the NGO Affairs Bureau
and the NGO sector, (ii) a regional training program, (iii) support for establishing a
formal Government-NGO Consultative Council, and (iv) monitoring and evaluation.
It is expected that the project will increase the understanding of the NGO Affairs
Bureau in its work with NGOs; improve the capacity of the NGOs involved for
professionalism and self-regulation; and help prepare guidelines, regulations, and legislation
for Government-NGO collaboration, including a framework for participation
of NGOs in externally funded projects. Since a process approach is being employed,
the monitoring and evaluation component will assess its effectiveness, and will also
identify further work required to achieve the original objectives of the project.
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- The Bank’s policies already permit provision of TA to NGOs.
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