The Editorial Analysis: Aiding in governance

Aiding in governance: Relevance

• GS 2: Development processes and the development industry —the role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders.

Aiding in governance: Key points

• A collaborative effort among government, market and non-state informal institutions leads to development of a country.
• CSR: Companies Act mandates corporates who are beyond a certain level of profits and turnover to pay at least 2% of their net profits before tax to the development space. It necessitates the private sector to collaborate with non-state actors like Non-Governmental Organisations (NGOs) and Civil Society Organisations (CSOs) to undertake developmental efforts.

Governance in India: Benefits of NGOs

• Non-state actors like NGOs strengthens the citizenry-private partnerships.
• Non-state actors, because of their depth of engagement with communities, bring patient capital to corporate board rooms and help the state, too, by engaging in welfare activities.
• NGOs and voluntary groups/organisations have played a significant role in building capacities of citizens to hold governments accountable.
• They become the vehicle to carry the demands of people to formal institutions. For example, RTI Act was enacted due to the efforts of NGOs.
• NGOs acts as a bridge between people and firms/state. They help in executing various flagship projects and hence bring development to the local level.
• NGOs and CSOs sometimes do the heavy lift and ensure that schemes reach the last person even in the face of disaster. When non-state actors take a large load off the state’s shoulder, the state can focus more on governance.
• Research shows that the synergy of NGOs, Government and corporates is the holy grail of development.

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