CDB recognises the very
crucial and important role that non-governmental organisations,
community-based organisations and civil society organisations need to play in
the social and economic development of its Borrowing Member Countries (BMCs).
This role as a social partner is critical simply because Caribbean governments
cannot do all that is needed on their own and must rely on empowered partners
to help especially in the area of social development.
Given this recognition, the CDB has assisted non-governmental
organisations in several activities, two of which may be highlighted:
(1) a programme was developed to train the management of non-governmental
organisations for the Council for Social Voluntary Services in Jamaica. This programme was designed and prepared by the Continuing
Studies Department of the University of the West Indies (UWI) whose expertise
was utilised by CDB in order to make this programme available through UWI=s
distance education facilities to all non-governmental organisations in the
Caribbean; and
(2) a feasibility study was funded (utilising DFID funds) on the creation
of a Atrust@ or Aendowment@ fund for non-governmental organisations throughout the Region.
This exercise was undertaken through the Caribbean Policy Development
Centre (CPDC) a non-governmental organisation umbrella body. CDB does not
necessarily support the idea of one such fund and we expect that several
non-governmental organisations will be trying to establish their own dedicated
fund. CDB supports this concept because it provides a mechanism to promote
philanthropy which is crucial to the support and long term viability of
non-governmental organisations.
During the last Special Development Fund funding cycle (1996-1999), CDB=s
technical assistance grant provision was formally targeted with specific
allocations being made to each borrowing member country.
There was also a ARegional@ allocation amounting to about 30% of the total
TA Grant funding.
Under these arrangements non-governmental organisations could only
access funding from the A Regional
allocation and CDB could only fund the regional activities of non-governmental
organisations if a government was willing to make part of its very small and
inadequate allocation available to a national non-governmental organisation.
These arrangements did not work well.
It is therefore proposed under the latest SDF funding cycle (2002-2005)
that a small portion of technical assistance grant funding be made available
for national non-governmental organisations to undertake activities which meet
the priorities established by CDB for use of its limited Grant resources.
The CDB wishes to promote the concept of legitimacy of non-governmental
organisations. In creating a strategy to assist non-governmental
organisations/civil society organisations, CDB has to be conscious of the
large number (over 1000) of such organisations operating in borrowing member
countries and be prepared to deal with them effectively.
Our strategy needs to focus on specific areas of action such as
corporate government and sustainability but must also deal with legitimacy.
Too many civil society organisations are ad hoc, unreliable and not adequately
rooted in their communities. It has been proposed therefore that CDB should
establish eligibility criteria for
access to its financial assistance for civil society organisations. Suggested
criteria include the following:
(1)
Legal registration as a charitable trust.
(2) Broad-based impact on socio-economic development
(3) Established network linkages outside of the civil society=s immediate community
(4) Audited accounts for a minimum of two years immediately proceeding the
request.
(5)
Evidence of a financial sustainability objective including a
willingness to establish an endowment fund.
(6) Track record of sustained fund raising
(7)
Track record of mobilising volunteers
(8) Track record of good management which is reflected in adequate forward
planning and achievement of objectives
(9) Services/administration expenses ratio must be greater than say 1:1
(10) Legitimate system of corporate governance based on democratic principles
I stress that these are suggestions for consideration by the Bank and
not decisions by the Bank. CDB would
welcome comments and discussions on them.
Reference was made previously to the funding of civil society
organisations. I am troubled by the history of their dependence on grants,
usually from the international community, and by the volatility of financing
which ensues from shifts in donor preferences and the weaning of local
organisations after some time has elapsed. A way should be found to stabilise
the financial condition of civil society organisations. I think it would be
useful to explore a model in which the services of civil society organisations
may be purchased by governments whenever those services can be provided more
cost-effectively by the civil society organisations. The financial transactions would in such circumstances be
commercial rather than charitable. Since the success of such a model would turn
upon the capacity of civil society
organisations to deliver, complementary programmes of capacity building might be
necessary.
Mr Chairman, I conclude by once more complimenting the organisers of
this conference and by expressing my own belief that together we can make a
positive difference. The specifics of such programmes would depend upon the
actual circumstances of particular organisations but in many instances would
include both management training and systems support.