Economic meltdown and management challenges of ng os a way forward b & w

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The global economic meltdown is hitting hard on various sectors of the world’s economy, and Non-Governmental Organisations (NGOs) are also feeling the crunch.
International donors and the governments have cut budgets due to the global financial crisis.
experts fear that increasing unemployment and poverty has led to less food security and quality of nutrition, which in turn has put more stress on an already weaker sections of society.

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Economic meltdown and management challenges of ng os a way forward b & w

  1. 1. Economic Meltdown andManagement Challenges of NGOs – A Way Forward Public Private Partnership Dr. Vibhuti Patel, Director, PGSR Professor & Head, Post Graduate Department of Economics, SNDT Women’s University, Churchgate, Mumbai-400020. E-mail-vibhuti.np@gmail.com Phone-91-022-26770227®, 22052970 (O)Mobile-9321040048 1
  2. 2. Macro economic Reality• The global economic meltdown is hitting hard on various sectors of the world’s economy, and Non-Governmental Organisations (NGOs) are also feeling the crunch.• International donors and the governments have cut budgets due to the global financial crisis.• experts fear that increasing unemployment and poverty has led to less food security and quality of nutrition, which in turn has put more stress on an already weaker sections of society. 2
  3. 3. Widening Funding Gap• Even international donor organisations have started to feel the financial crunch.• The meltdown is affecting the sectors such as health, education, poverty reduction and malnutrition prevention.• Social sector is feeling the heat, thus diminishing hopes of meeting the Millennium Development Goals (MDGs).• Small NGOs bear the brunt 3
  4. 4. Multipronged crisis Management• the current financial crises has led to a drop in asset values of scales among philanthropic foundations,• while households now face greater financial uncertainty and declining net worth, which has led to drops in individual donations even a break up of donor pools. Oxfam, Novib• a decline in volunteering. 4
  5. 5. Optimal Utilisation of Funds• NGOs should learn how to manage resources in terms of current expenditures for ongoing and planned programmes;• adding that the economic crises could lead to financial instability, more uncertainty for management and staff, possibilities of unfulfilled contracts and obligations and unmet demand.• Building corpus through auctions of paintings, organising concerts, jumble sale, etc. 5
  6. 6. Distressing Scenario• "If we do not receive urgent financial assistance, we will have to curtail some very essential services - especially in deep rural areas where our provincial staff have trained and are supporting the volunteers who are helping us to manage the projects.”• "It is also sad that despite the fact that children are considered the future of our country, our investment in childrens welfare services is one of the areas being cut back.”• "It is sad because our staff around the country work long hours, for low rewards with a great deal of dedication and love for children.” 6
  7. 7. How Argentina’s NGOs Responded to Melt Down?• During the economic collapse, many business owners and foreign investors drew all of their money out of the Argentine economy and sent it overseas. As a result, many small and medium enterprises closed due to lack of capital, thereby exacerbating unemployment. Many workers at these enterprises, faced with a sudden loss of employment and no source of income, decided to reopen businesses on their own, without the presence of the owners and their capital, as self- managed cooperatives. 7
  8. 8. Worker managed cooperative businesses• range from ceramics factory Zanon (FaSinPat), to the four-star Hotel Bauen, to suit factory Brukman, to printing press Chilavert, and many others.• As of 2007, there were about 10,000 people employed in self-managed businesses, representing a significant source of employment and economic growth.• In some cases, the former owners sent police to kick workers out of the workplaces; this was sometimes successful but in other cases workers defended occupied workplaces against the state, the police, and the bosses. 8
  9. 9. Alternatives with Human Face• Some businesses have now been legally purchased by the workers for nominal fees, others remain occupied by workers who have no legal standing with the state (and in some cases reject negotiation with the state on the grounds that working productively is its own justification). The Argentine government is considering a Law of Expropriation that would transfer some occupied businesses to their worker-managers.• In the pockets of massive unemployment, starting of community kitchen by NGOs-economies of scale and No to personal obligation 9
  10. 10. Nigerian Response to Melt Down• The unprecedented investment by the state government in the rehabilitation and construction of roads, schools, health facilities, drainages, canals, houses, markets and the beautification of open spaces and loops across the state, has provided it with a very good credit profile and bonding credibility.• NGOs collaborating with the governments• Public-private partnership in development administration 10
  11. 11. Need to Network between NGOs & GOs• We need to ensure that the poor and the marginalised sections of the economy do not become a silent casualty.• Development agenda (Education, Health, Employment, safe environment) has to be our priority to attain MDGs• Public Private Partnership• Mega Project-NRHM, SSS, JNNURM, NACO 11
  12. 12. PPP between Gos & NGOs in IndiaHighlights of Union Budget 2009-10• Strengthen the delivery mechanism for healthcare• · Allocation of Rashtriya Krishi Vikas Yojna stepped up by 30%• Housing allocation hiked under Rajiv Awaas Yojana• · Fund allocation for urban poor accommodation is 3,973,000 cr• JNNURM allocation hiked by 87 per cent• · Allocation for PM Gram Sadak Yojna up by 59 per cent• Rs 39,100 crore allocation for NREGA• · Rashtriya Mahila Kosh corpus to be raised to Rs 500 crore• National Mission for female literacy• · NREGA allocation up 144%• Work on National Food Security scheme for subsidised food• · Indira Awaas Yojna hiked by 63% to Rs 8,883 cr• Allocation for NRHM to be raised by Rs 257 cr• · 50% cent of rural women to be in self-help groups From Advocacy to Programme implementation 12
  13. 13. STRENGTHENING OF PUBLICINSTITUTIONS FOR HEALTH DELIVERY• Rashtriya Swasthya Bima Yojna• Emergency Management and Research Institute (EMRI)• Urban - RCH• Mobile Medical Units• Social Marketing of Sanitary Napkins• Cleanliness and Maintenance of Community Health Centers (CHCs)• Public Private Partnership (PPP) in Primary Health Care sector.Change in the mindset of both the partners (GO and NGO) to work jointly and coherently 13
  14. 14. Public-private partnerships in micro-finance• NGOs can help in channelizing credit to the poor, both in borrower selection and monitoring• Cross-sector partnerships – such as those between business & non-governmental organisations and government and NGOs– are an increasingly popular way for NGOs to contribute to society and face challenges of the economic melt-down.e.g. Stree Mukti Sangathna (Mumbai) , Mandesh Mahila Sahakari Mandali (Mann), Annapurna (Mumbai) MASUM (Pune). 14
  15. 15. Human Resource Centre• Training-modules on rainwater harvesting, alternate sources of energy, solid waste management, livelihood finance, IT• Capacity Building• Staff- training on financial management• Frontline areas of knowledge management• Niche areas-CEHAT (Health), Majlis (Legal literacy & Service), Vacha (Education), Stree Mukti Sangathana (Environment)• Getting out of awareness generation mode to action mode and skill enhancement mode 15
  16. 16. In the muddy water of economic melt down, the NGOs have to bloom like water lilies….. Thank you 16

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