THE ROLE OF NON-PROFITS IN INTERNATIONAL DEVELOPMENT AID

• Civil society has grown exponentiallyover the past decades and today is recognized as an importantdevelopment actor throughout the world; monitoring public policies,providing technical expertise, and partnering with governments toprovide community services.
• The Bank has greatlyincreased its cooperation with Civil Society Organizations (CSOs) overthe past 20 years, and today it is estimated that CSOs are involved in72 percent of new Bank-financed projects each year.
• TheBank funds thousands of civil society initiatives each year in areassuch as: post-conflict reconstruction, HIV/AIDS prevention,environmental protection, and poverty reduction.
• Morethan 120 civil society specialists work at the World Bank to ensure theviews of CSOs are considered and to encourage CSO involvement inBank-financed projects.

The Growth of Civil Society

TheCivil Society sector – composed of non-governmental organizations,faith-based groups, trade unions, indigenous people’s groups,charitable organizations, community groups, and foundations, amongothers – has emerged as a major force in international development inthe past 20 years. There has been a dramatic expansion in the size,scope, and capacity of civil society which has come in the wake ofgrowing democratic governance throughout the world. The number ofinternational NGOs was reported to have increased from 6,000 in 1990 to26,000 in 1999. CSOs have also become significant players in globaldevelopment assistance, with the Organization for Economic Cooperationand Development (OECD) reporting that as of 2003 at least $12 billionin international assistance flows through CSOs.

CSOs’ havedemonstrated an increased influence and ability to shape global publicpolicy over the past two decades. This dynamism is exemplified bysuccessful advocacy campaign movements which have mobilized thousandsof supporters around the world on issues such as: the banning of landmines, debt cancellation, and environmental protection. The most recentexample of the vibrancy and importance of civil society was the GlobalCall to Action Against Poverty (GCAP), which was organized by acoalition of international CSOs to influence the discussions on debtand trade at the G8 Summit in Gleneagles, Scotland, in July 2005. Thecampaign was estimated to have mobilized over 100 million citizensaround the world to demonstrate their concern for global poverty bywearing white wristbands, attending concerts, and lobbying theirgovernment officials.

Why the Bank Engages Civil Society

TheWorld Bank recognizes that collaboration between civil society,government, and the private sector can significantly enhance efforts topromote economic growth and sustainable social development.  Civilsociety, in particular, plays an important role in development by:

• Ensuringthat voices of poor and marginalized people can be heard bygovernments, and their views factored into policy decisions.
• Promoting public sector accountability and transparency through increased pressure for good governance.
• Buildingcommon-ground through participatory approaches and strengtheningnational development strategies and poverty reduction initiatives.
• Providing technical expertise and offering innovative and cost-effective solutions to local problems.
• Partnering with governments to provide social services, particularly in fragile governance and post-conflict settings.

How the Bank Engages with Civil Society 

TheBank began formally interacting with CSOs in the late 1970s throughdiscussions over concern about environmental impacts of Bank-fundedprojects. In 1981, the Bank’s Board of Directors approved the firstpolicy on relations with CSOs. Recently, the Bank published a policypaper titled Issues and Options for Improving Engagement between the World Bank and Civil Society Organization.,The report analyzes the Bank’s relationship with civil society andprovides an institutional framework and lays out a 10-point action planfor further strengthening these relations. In January 2005, the paperwas presented to the Bank’s Board of Executive Directors, whomreaffirmed support for civil society engagement as an importantcomponent to strengthening its own poverty reduction efforts worldwide.

Inthe area of policy dialogue, the Bank consults with CSOs to get theirviews and suggestions on a range of issues from global policies such associal safeguards to specific projects at the country level. The Bankalso encourages and supports developing-country governments to engageCSOs in the formulation of Poverty Reduction Strategies (PRSs) whichdefine a country’s policies and plans for poverty reduction. The mostrecent consultation process occurred in 2007 and was centered aroundthe Governance and Anti-Corruption Strategy. This involved meetingswith civil society representatives in over 40 countries across theglobe.

The Bank has steadily increased its operationalcollaboration with civil society by involving them in Bank-fundedprojects and by funding their own development initiatives. Theprojected involvement of CSOs in Bank-financed projects has increasedfrom 21 percent of the total number of newly funded projects in FiscalYear 1990 to an estimated 70 percent in Fiscal Year 2007. UnprecedentedBank and civil society collaboration occurred in response to the AsianTsunami in 2004, particularly in Indonesia, where the Bank and CSOshave worked closely in rebuilding efforts.

Support of civilsociety development efforts worldwide has increased through theestablishment of numerous funding mechanisms. Grants are typicallyprovided to CSOs working in areas such as: rural poverty alleviation,community health, micro-enterprise development, environmentalprotection, primary education, and gender rights. The Bank funds CSOs directly through Washington-based mechanisms, and indirectlythrough government-administered social funds in more than 60 countries.For numerous examples of Bank and civil society policy dialogue andoperational collaboration at the global, regional, and national levelssee the World Bank – Civil Society Engagement: Review of Fiscal Years 2005 – 2006.