Very few NGO's derive some of their income from public
contributions and donations. The more substantial NGO's
spend one tenth of their budget on PR and solicitation of
charity. In a desperate bid to attract international attention,
so many of them lied about their projects in the Rwanda
crisis in 1994, recounts "The Economist", that the Red
Cross felt compelled to draw up a ten point mandatory
NGO code of ethics. A code of conduct was adopted in
1995. But the phenomenon recurred in Kosovo.
All NGO's claim to be not for profit - yet, many of them
possess sizable equity portfolios and abuse their position
to increase the market share of firms they own. Conflicts
of interest and unethical behavior abound.
Cafedirect is a British firm committed to "fair trade"
coffee. Oxfam, an NGO, embarked, three years ago, on a
campaign targeted at Cafedirect's competitors, accusing
them of exploiting growers by paying them a tiny fraction
of the retail price of the coffee they sell. Yet, Oxfam owns
25% of Cafedirect.
Large NGO's resemble multinational corporations in
structure and operation. They are hierarchical, maintain
large media, government lobbying, and PR departments,
head-hunt, invest proceeds in professionally-managed
portfolios, compete in government tenders, and own a
variety of unrelated businesses. The Aga Khan Fund for
Economic Development owns the license for second
mobile phone operator in Afghanistan - among other
businesses. In this respect, NGO's are more like cults than
like civic organizations.
Many NGO's promote economic causes - anti-
globalization, the banning of child labor, the relaxing of
intellectual property rights, or fair payment for
agricultural products. Many of these causes are both
worthy and sound. Alas, most NGO's lack economic
expertise and inflict damage on the alleged recipients of
their beneficence. NGO's are at times manipulated by - or
collude with - industrial groups and political parties.
It is telling that the denizens of many developing countries
suspect the West and its NGO's of promoting an agenda of
trade protectionism. Stringent - and expensive - labor and
environmental provisions in international treaties may
well be a ploy to fend off imports based on cheap labor
and the competition they wreak on well-ensconced
domestic industries and their political stooges.
Take child labor - as distinct from the universally
condemnable phenomena of child prostitution, child
soldiering, or child slavery.
Child labor, in many destitute locales, is all that separates
the family from all-pervasive, life threatening, poverty. As
national income grows, child labor declines. Following
the outcry provoked, in 1995, by NGO's against soccer
balls stitched by children in Pakistan, both Nike and
Reebok relocated their workshops and sacked countless
women and 7000 children. The average family income -
anyhow meager - fell by 20 percent.
Public-domain text, read in full here on John Shaqi.
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