Ethics Theory, TLP-UPSC Mains Answer Writing
Q. 2. “Non Governmental Organizations (NGOs), as part of the third sector, play an important role in India’s development landscape. Discuss the challenges they face in contributing effectively to the development process and suggest solutions” (150 words, 10 marks)
Introduction
India has nearly 3.4 million NGOs engaging across sectors like health, education, livelihoods, and rights. They offer grassroots reach and innovation but face operational hurdles. Their effective role remains contingent on strengthening institutional and regulatory support.
Body
Important Role Played by NGOs
- Grassroots Reach & Community Linkages: NGOs operate closely with local populations, understanding context and tailoring interventions. Example: Pratham has improved foundational literacy in rural India through community specific teaching models.
- Innovation & Flexibility: NGOs can pilot novel models like social enterprises, mobile clinics, skill hubs. Example: SELCO Foundation has pioneered solar-powered micro-grids and solar lighting for off-grid villages.
- Mobilising Resources & Networks: NGOs bring together government grants, CSR, foreign donors, volunteers and media for comprehensive outreach. Example: Goonj mobilised pan-India relief efforts during COVID-19 using donations, CSR, and local volunteer networks.
- Advocacy & Policy Influence: NGOs amplify marginalised voices and inform policy through research and advocacy. Example: CHRI (Commonwealth Human Rights Initiative) was instrumental in promoting RTI legislation in India.
- Service Delivery & Monitoring: Implementing on-ground projects and acting as watchdogs enhances accountability in public schemes. Example: MKSS (Mazdoor Kisan Shakti Sangathan) pioneered social audits under MGNREGA in Rajasthan.
Challenges: Operational Hurdles Faced by NGOs
- Financial Constraints & Dependency: Heavy reliance on donor funding and CSR makes NGOs vulnerable to funding cuts. Example: Many small education NGOs like Ekal Vidyalaya have faced disruptions due to irregular CSR inflows.
- Regulatory and FCRA Restrictions: Stringent Foreign Contribution Regulation Act norms restrict flexibility and impose compliance burdens. Example: Greenpeace India faced repeated FCRA licence suspensions affecting its environmental campaigns.
- Capacity & Governance Gaps: Many NGOs lack professional staff, strong governance structures and impact measurement systems. Example: Numerous smaller NGOs in northeastern states lack audited accounts or structured evaluation processes.
- Political and Bureaucratic Interference: NGOs working on sensitive issues sometimes face resistance or curbs on operations. Example: Amnesty International India was forced to halt operations after its accounts were frozen under FCRA scrutiny.
- Inadequate Registration and Verification Mechanisms: A large number of NGOs are either unregistered or not compliant with existing registration norms. Example: A CAG report found many NGOs receiving funds without being registered under NITI Aayog’s DARPAN portal.
- Lack of Credible Evaluation Frameworks: Absence of third-party audits or accreditation affects trust and credibility.
- Adverse Intelligence Bureau (IB) Reporting: Intelligence reports have alleged that certain NGOs negatively impact national development by stalling projects. Example: An IB report in 2014 claimed that foreign-funded NGOs delayed infrastructure projects worth billions by opposing them.
Solutions: Strengthening NGO Effectiveness
- Accreditation & Transparency Framework: As recommended by the 2nd ARC, develop a national NGO council to maintain registries, enforce audit norms, and publicly rate performance.
- Capacity Building & Professionalisation: As suggested by the Parliamentary Standing Committee on Social Justice (2023), initiate structured training programs in partnership with larger NGOs and state agencies to enhance governance and delivery standards.
- Funding Diversification & Sustainability: Promote hybrid revenue models and incentivise public and CSR donations through tax benefits.
- Convergence & Coordination Platforms: Set up district-level forums to encourage collaboration among NGOs and alignment with local government plans. 5. Enabling Legal Environment: Reform FCRA compliance processes to be less arbitrary while safeguarding genuine operations, especially for rights-based NGOs.
Conclusion
To fully harness the third sector’s potential, NGOs need professional capacity, funding resilience, transparency and enabling regulation. With strategic support and collaborative ecosystems, NGOs can amplify development outcomes and foster inclusive growth across India.
