RRP 2021 – Governance Ready Reckoner
16. NGOs
The World Bank defines NGOs as ―private organizations that pursue activities to relieve
suffering and promote the interests of the poor.‖
Role of NGOs
They have played an important role in India‘s development process by carrying out
supporting activities.
NGOs provide last mile delivery of services where the State does not or cannot reach.
NGOs provide feedback about efficacy of government schemes and complement in
their implementation.
Case for Regulation of NGOs
The NGO industry has grown at a very fast pace in recent years.
Misuse funds by floating NGOs.
Most NGOs work with inadequately trained professionals.
There is an increasing monopolization of their leadership.
Many are funded by the government, and therefore should be scrutinised
The Supreme Court too, in a recent judgement, has spoken in favour of this step.
Less than 10% submit their accounts with the Registrar of Societies, as mandated by
law.
Foreign funded NGOs‘ agendas might be antithetical to national interests.
Case against Regulation Of NGOs
Already many measures of regulation are in place. More measures might lead to over-
regulation.
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Senior management personnel have been brought under the definition of ―public
servants‖ under the Lokpal and Lokayukta Act, 2013 and thus are required to
disclose their assets and liabilities, along with those of their spouse and children.
More regulations might hamper the functioning of well-meaning NGOs.
It may restrict their ability to explore alternative paradigms of development to
challenge social, economic and political forces.
Hence, while it is desirable and acceptable to regulate NGOs, the government should
take note as to not stifle their voices with over-regulation.
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RRP 2021 – Governance Ready Reckoner
17. SOCIAL AUDITS
Social audit is based on the principle that democratic local governance should be carried
out, as far as possible, with the consent and understanding of all concerned.
A social audit is a way of measuring, understanding, reporting and ultimately
improving an organization‟s social and ethical performance.
A social audit helps to narrow gaps between vision/goal and reality, between
efficiency and effectiveness.
Objectives of Social Audit
Assessing the physical and financial gaps between needs and resources available for
local development.
Creating awareness among beneficiaries and providers of local social and productive
services.
Increasing efficacy and effectiveness of local development programmes.
Scrutiny of various policy decisions, keeping in view stakeholder interests and
priorities, particularly of rural poor.
Estimation of the opportunity cost for stakeholders of not getting timely access to
public services.
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