Day 43 – Q. 5. “Development today is no longer the sole domain of the government. Critically examine the role of donors, charities, community-based organizations and institutional stakeholders in shaping India’s development agenda.” (250 words, 15 marks)

  • IASbaba
  • July 21, 2025
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Ethics Theory, TLP-UPSC Mains Answer Writing

Q. 5. “Development today is no longer the sole domain of the government. Critically examine the role of donors, charities, community-based organizations and institutional stakeholders in shaping India’s development agenda.” (250 words, 15 marks)


Introduction 

India’s development landscape has evolved into a multi-stakeholder ecosystem. According  to NITI Aayog, non-state actors contribute significantly to sectors like health, education, and  livelihoods, complementing state efforts, especially in areas where public service delivery  remains inadequate. 

Body 

Complementary Roles of Non-State Actors 

  1. Donors and Philanthropic Foundations: Provide funding, technical expertise, and policy  advocacy. Example: Gates Foundation supports immunization with WHO and Gavi. 2. Charities and Faith-Based Organizations: Deliver last-mile services to marginalized  communities. Example: Akshaya Patra serves 2 million midday meals. 
  2. Community-Based Organizations (CBOs): Enable participatory development and  grassroots accountability. Example: SEWA organizes 2.5 million informal women workers. 4. Corporate Social Responsibility (CSR) and Institutional Stakeholders: Drive innovation  and scale through CSR mandates (Companies Act, 2013). Example: Tata Trusts works with  NITI Aayog on digital literacy. 
  3. Bridging Governance Gaps: Operate in underserved regions (e.g., conflict zones, tribal  areas). Example: PRADAN supports tribal livelihoods in Jharkhand. 

Challenges in Multi-Stakeholder Governance 

  1. Fragmentation and Lack of Synergy: Parallel initiatives waste resources (e.g., NGO and  government schools in tribal areas with no shared learning). 
  2. Accountability Gaps: 20,000+ NGOs lost FCRA licenses since 2014 for non-compliance  (MHA data), but misuse cases like fund diversion persist. 
  3. Urban and Sectoral Bias: 70% of CSR funds target education and health (India CSR Report  2023), while rural sanitation and disability receive <5%. 
  4. Donor-Driven Agendas: Foreign-funded NGOs sometimes prioritize donor templates over  local needs (e.g., generic nutrition programs ignoring regional diets). 
  5. Political Resistance: Regulatory crackdowns on critical NGOs (e.g. Amnesty International’s  2020 exit after FCRA freeze following human rights reports). 

Way Forward 

  1. Formalize State-Civil Society Partnerships: Create NITI Aayog-led platforms for joint  planning (e.g. Aspirational Districts Program). 
  2. Reform FCRA/CSR Frameworks: Simplify compliance while enforcing transparency (e.g.,  FATF-aligned donor disclosures). 
  3. Localize Development: Align NGO projects with Panchayat-level plans (e.g. Kerala’s  Kudumbashree model). 
  4. Incentivize Community Ownership: Scale up participatory budgeting (e.g., Meghalaya’s  Village Councils). 
  5. Data-Driven Decision Making: Share real-time data via platforms like DISHA (Digital  Infrastructure for Social Impact). 

Conclusion

India’s development future hinges on structured collaboration. By balancing innovation with  accountability, non-state actors can amplify state efforts, ensuring equitable and sustainable  growth.

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