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Heavily indebted poor countries

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The heavily indebted poor countries ( HIPC ) are a group of 39 developing countries with high levels of poverty and debt overhang . Because of these factors, the International Monetary Fund (IMF) and the World Bank have classified them as eligible for special assistance.

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95-628: The HIPC Initiative was initiated by the International Monetary Fund and the World Bank in 1996, following extensive lobbying by NGOs and other bodies. It provides debt relief and low-interest loans to cancel or reduce external debt repayments to sustainable levels. This means the nations can repay debts in a timely fashion in the future. To be considered for the initiative, countries must face an unsustainable debt burden that cannot be managed with traditional means. Assistance

190-669: A Poverty Reduction Strategy Paper (PRSP). PRSPs describe the macroeconomic, structural, and social programs that a country will follow to promote economic growth and reduce poverty. A broad range of government, NGO, and civil-society groups must participate in the development of the PRSP to ensure the plan has local support. Under the revised HIPC, a country reaches the decision point once it has demonstrated progress in following its PRSP. The country then reaches its completion point once it has implemented and followed its PRSP for at least one year and has demonstrated macroeconomic stability. In 2001,

285-647: A blend country ). The IDA is a unique part of the World Bank as it requires continuous replenishment of its resources. Member countries replenish its funds through contributions in addition to supplementary funds provided by the International Bank for Reconstruction and Development and the International Finance Corporation (IFC). Whereas the IBRD acquires most of its funds by raising capital on international financial markets,

380-825: A donor who wants to see the supported project managed by a person from an industrialized country . The expertise of these employees (or volunteers) may be counterbalanced by several factors, such as ; the cost of foreigners is typically higher, they have no grassroots connections in the country, and local expertise may be undervalued. By the end of 1995, Concern Worldwide (an international anti-poverty NGO) employed 174 foreigners and just over 5,000 local staff in Haiti and ten developing countries in Africa and Asia. On average, employees in NGOs earn 11-12% less compared to employees of for-profit organizations and government workers with

475-610: A hierarchical structure; their headquarters are staffed by professionals who plan projects, create budgets, keep accounts, and report to and communicate with operational fieldworkers on projects. They are most often associated with the delivery of services or environmental issues, emergency relief, and public welfare. Operational NGOs may be subdivided into relief or development organizations, service-delivery or participatory, religious or secular, and public or private. Although operational NGOs may be community-based, many are national or international. The defining activity of an operational NGO

570-536: A March 2000 report on United Nations reform priorities, former UN Secretary-General Kofi Annan favored international humanitarian intervention as the responsibility to protect citizens from ethnic cleansing, genocide, and crimes against humanity. After that report, the Canadian government launched its Responsibility to Protect (R2P) project outlining the issue of humanitarian intervention. The R2P project has wide applications, and among its more controversial has been

665-432: A country must first meet HIPC's threshold requirements. At HIPC's inception in 1996, the primary threshold requirement was that the country's debt remains at unsustainable levels despite full application of traditional, bilateral debt relief. At the time, HIPC considered debt unsustainable when the ratio of debt-to-exports exceeded 200-250% or when the ratio of debt-to-government revenues exceeded 280%. The IMF estimates that

760-589: A crisis arise that meets the mechanism's criteria. The replenishment rounds are typically agreed every three years . The eighteenth was finalised in December 2016, the nineteenth was being discussed in October 2019. Because African countries face some of the most severe poverty and underdevelopment , and because 39 of those countries are the IDA's poorest member states, the association allocates approximately half of

855-453: A debt-to-export ratio of 150% and a debt-to-government-revenues ratio of 250%. Second, the country must be sufficiently poor to qualify for loans from the World Bank's International Development Association or the IMF's Poverty Reduction and Growth Facility (PRGF, the successor to ESAF), which provide long-term, interest-free loans to the world's poorest nations. Lastly, the country must establish

950-697: A deep understanding of the issues facing people and to tailor their services to meet the specific needs of each community. NGOs vary by method; some are primarily advocacy groups , and others conduct programs and activities. Oxfam , concerned with poverty alleviation, may provide needy people with the equipment and skills to obtain food and drinking water ; the Forum for Fact-finding Documentation and Advocacy (FFDA) helps provide legal assistance to victims of human-rights abuses. The Afghanistan Information Management Services provide specialized technical products and services to support development activities implemented on

1045-500: A lack of resources. They may be contractors or collaborate with government agencies to reduce the cost of public goods. Capacity-building NGOs affect "culture, structure, projects and daily operations". Advocacy and public-education NGOs aim to modify behavior and ideas through communication, crafting messages to promote social, political, or environmental changes (and as news organisations have cut foreign bureaux, many NGOs have begun to expand into news reporting). Movement NGOs mobilize

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1140-517: A need for the association to carefully examine its financial models and business operations to determine an appropriate strategy going forward. The center recommended that the World Bank leadership begin discussing the long-term future of the IDA. The IDA has 173 member countries which pay contributions every three years as replenishments of its capital. On 12 December 2008, Samoa joined UNIDO as its 173rd member. The IDA lends to 75 borrowing countries, over half of which (39) are in Africa. Membership in

1235-632: A resource allocation index. It then prioritizes its lending to those countries which are indicated to be most promising in terms of favorable policies and aid effectiveness . The IDA adopted the Crisis Response Window in 2007 to enable the rapid provision of emergency financing in response to crises. The association adopted the Immediate Response Mechanism in 2011 to provide IDA borrowers with immediate access to withdraw undisbursed portions of their loans, should

1330-449: A total US$ 238 billion in loans and grants since its launch in 1960. Thirty-six of the association's borrowing countries have graduated from their eligibility for its concessional lending. However, nine of these countries have relapsed and have not re-graduated. During the 1940s and 1950s, low-income developing countries began to realize that they could no longer afford to borrow capital and needed more-favorable lending terms than offered by

1425-453: A track record of reforms to help prevent future debt crises. In addition to the modified threshold requirements, the 1999 revisions introduced several other changes. First, the six-year structure was abandoned and replaced by a "floating completion point" that allows countries to progress towards completion in less than six years. Second, the revised HIPC allows for interim debt relief so that countries begin to see partial relief before reaching

1520-593: Is a development finance institution which offers concessional loans and grants to the world's poorest developing countries . The IDA is a member of the World Bank Group and is headquartered in Washington, D.C. in the United States. It was established in 1960 to complement the existing International Bank for Reconstruction and Development by lending to developing countries which suffer from

1615-545: Is conditional on the national governments of these countries meeting a range of economic management and performance targets and undertaking economic and social reforms. The 37 countries that have so far received full or partial debt relief are: 37 countries have completed the program and had their external debt cancelled in full, after Somalia passed the Completion Point in 2020. An additional two countries ( Eritrea and Sudan ) are being considered for entry into

1710-486: Is delivered in a timely and effective manner. NGOs also play a critical role in driving change by advocating for policies and practices that benefit disadvantaged communities. They often work in partnership with other organizations, including government agencies, to address complex challenges that require a collaborative approach. One of the key strengths of NGOs is their ability to work at the grassroots level and to connect with communities directly. This allows them to gain

1805-703: Is necessary for executing a replenishment. The threshold was implemented with the aim to compel the United States to participate in replenishment rounds. Though countries intended for the triggers to hold the United States to its commitments, the threshold ultimately provided the United States a de facto veto power over replenishment and capital increase negotiations due to its ability to bring replenishment negotiations to an impasse by threatening to withhold support. The U.S. has used this influence to further its long-term foreign policy objectives and short-term political and economic goals by imposing conditionality on replenishment negotiations. The IDA lends to countries with

1900-466: Is not founded by an international treaty". The role of NGOs and other "major groups" in sustainable development was recognized in Chapter 27 of Agenda 21 . The rise and fall of international NGOs matches contemporary events, waxing in periods of growth and waning in times of crisis. The United Nations gave non-governmental organizations observer status at its assemblies and some meetings. According to

1995-715: Is observed annually on 27 February, was recognised on 17 April 2010 by 12 countries of the IX Baltic Sea NGO Forum at the eighth Summit of the Baltic Sea States in Vilnius , Lithuania. It was internationally recognised on 28 February 2014 in Helsinki , Finland by United Nations Development Programme administrator and former Prime Minister of New Zealand Helen Clark . In the context of NGOs (Non-Governmental Organizations), diplomacy refers to

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2090-778: Is often used to judge it; less than four percent is considered good. According to the World Association of Non-Governmental Organizations, more than 86 percent should be spent on programs (less than 20 percent on overhead). The Global Fund to Fight AIDS, Tuberculosis and Malaria has guidelines of five to seven percent overhead to receive funding; the World Bank typically allows 37 percent. A high percentage of overhead relative to total expenditures can make it more difficult to generate funds. High overhead costs may also generate public criticism. A sole focus on overhead, however, can be counterproductive. Research published by

2185-829: Is so prohibitive that they cannot afford to borrow commercially or from the Bank's other programs. The IDA's stated aim is to assist the poorest nations in growing more quickly, equitably , and sustainably to reduce poverty. The IDA is the single largest provider of funds to economic and human development projects in the world's poorest nations. From 2000 to 2010, it financed projects which recruited and trained 3 million teachers, immunized 310 million children, funded $ 792 million in loans to 120,000 small and medium enterprises , built or restored 118,000 kilometers of paved roads, built or restored 1,600 bridges, and expanded access to improved water to 113 million people and improved sanitation facilities to 5.8 million people. The IDA has issued

2280-536: Is the implementation of projects. Advocacy NGOs or campaigning NGOs seek to "achieve large-scale change promoted indirectly through the influence of the political system". They require an active, efficient group of professional members who can keep supporters informed and motivated. Campaigning NGOs must plan and host demonstrations and events which will attract media, their defining activity. Campaigning NGOs often deal with issues related to human rights, women's rights, and children's rights, and their primary purpose

2375-474: Is to communicate with NGOs about areas of mutual interest. Department of Defense Directive 3000.05, in 2005, required the US Defense Department to regard stability-enhancing activities as equally important as combat. In compliance with international law , the department has developed a capacity to improve essential services in areas of conflict (such as Iraq ) where customary lead agencies like

2470-703: Is to defend (or promote) a specific cause. Non-governmental organisations need healthy public relations in order to meet their goals, and use sophisticated public-relations campaigns to raise funds and deal with governments. Interest groups may be politically important, influencing social and political outcomes. A code of ethics was established in 2002 by the World Association of Non-Governmental Organizations . Some NGOs rely on paid staff while others are based on volunteers . Although many NGOs use international staff in developing countries, others rely on local employees or volunteers. Foreign staff may satisfy

2565-484: Is transnational coordination by non-official members of the government, including epistemic communities and former policymakers or analysts. It aims to help policymakers and policy analysts reach a common solution through unofficial discussions. Unlike official diplomacy, conducted by government officials, diplomats, and elected leaders, Track II diplomacy involves experts, scientists, professors and other figures who are not part of government affairs. World NGO Day, which

2660-690: The European Convention on the Recognition of the Legal Personality of International Non-Governmental Organisations in Strasbourg in 1986, creating a common legal basis for European NGOs. Article 11 of the European Convention on Human Rights protects the right to associate, which is fundamental for NGOs. The question whether a public project should be owned by an NGO or by the government has been studied in economics using

2755-875: The International Bank for Reconstruction and Development (IBRD). At the onset of his inaugural term in 1949, then- President of the United States Harry S. Truman assembled an advisory group to suggest ways to accomplish his Point Four Program , of which a significant component was an effort to strengthen developing countries, especially those nearest to the Eastern Bloc , to dissuade them from aligning with other communist states . The advisory group recommended an international mechanism that would function somewhere in between providing strictly-loaned and strictly-granted funds. The UN and United States government published reports expressing support for

2850-545: The Marshall Plan as a comparatively generous gift to European nations. In the late 1940s and early 1950s, developing countries began calling for the United Nations (UN) to create a development agency that would offer technical support and concessional financing, with a particular desire that the agency adhere to other UN bodies' convention of each country having one vote as opposed to a weighted vote. However,

2945-654: The Paris Declaration on Aid Effectiveness principles of harmonization and alignment, promote greater use of sector-wide approaches to coordination, and explain the reasons why when a country's financial management system is not used so that the client country may address those shortcomings. It also recommended that the Bank collaborate with development partners to strengthen country-level leadership of development assistance coordination by offering greater financial and technical support. Development economists, such as William Easterly , have conducted research which ranked

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3040-529: The State Department and USAID have difficulty operating. International Health cultivates collaborative, arm's-length relationships with NGOs, recognizing their independence, expertise, and honest-broker status. International non-governmental organizations date back to at least the late 18th century, and there were an estimated 1,083 NGOs by 1914. International NGOs were important to the anti-slavery and women's suffrage movements, and peaked at

3135-642: The UN Department of Global Communications , an NGO is "a not-for profit , voluntary citizen's group that is organized on a local, national or international level to address issues in support of the public good". The term NGO is used inconsistently, and is sometimes used synonymously with civil society organization (CSO), which is any association founded by citizens. In some countries, NGOs are known as nonprofit organizations while political parties and trade unions are sometimes considered NGOs as well. NGOs are classified by (1) orientation- entailing

3230-505: The Urban Institute and Stanford University 's Center for Social Innovation have shown that rating agencies create incentives for NGOs to lower (and hide) overhead costs, which may reduce organizational effectiveness by starving organizations of infrastructure to deliver services. An alternative rating system would provide, in addition to financial data, a qualitative evaluation of an organization's transparency and governance: In

3325-992: The Washington Consensus . Twentieth-century globalization increased the importance of NGOs. International treaties and organizations, such as the World Trade Organization , focused on capitalist interests. To counterbalance this trend, NGOs emphasize humanitarian issues , development aid , and sustainable development . An example is the World Social Forum , a rival convention of the World Economic Forum held each January in Davos , Switzerland. The fifth World Social Forum, in Porto Alegre , Brazil in January 2005,

3420-600: The Board of Directors. The Board of Directors consists of 25 executive directors and is chaired by the President of the World Bank Group . The executive directors collectively represent all 187 member states of the World Bank, although decisions regarding IDA matters concern only the IDA's 172 member states. The president oversees the IDA's overall direction and daily operations. As of May 2024 , Ajay Banga serves as

3515-656: The Canadian government's use of R2P to justify its intervention in the coup in Haiti. Large corporations have increased their corporate social responsibility departments to preempt NGO campaigns against corporate practices. Collaboration between corporations and NGOs risks co-option of the weaker partner, typically the NGO. In December 2007, Assistant Secretary of Defense for Health Affairs S. Ward Casscells established an International Health Division of Force Health Protection & Readiness. Part of International Health's mission

3610-733: The Expanded Programme of Technical Assistance to form the United Nations Development Programme . By the end of January 1960, fifteen countries signed the articles of agreement which established the International Development Association. The association launched in September of that same year with an initial budget of $ 913 million ($ 7.1 billion in 2012 dollars ). Over the next eight months following its launch,

3705-537: The HIPC initiative had failed, and failed miserably. One aspect behind the failure, according to the Nigerien journalist Moussa Tchangari: The criteria used for country selection excluded the mostly highly populated developing countries (for example, Nigeria — 120 million inhabitants — which was on the very first list in 1996) and kept only small countries that are both very poor and heavily indebted... The countries where

3800-498: The HIPC initiative must adopt a Poverty Reduction Strategy Paper (PRSP), under the auspices of the IMF and the World Bank. This document must indicate the use that will be made of the resources made available by this initiative, and contain a certain number of commitments relating to the implementation of classical structural adjustment measures: privatization of public companies, reduction of the salaried workforce, reduction of grants, elimination of government subsidies and deregulation of

3895-539: The IDA as featuring the most transparency and best practices among donors of development aid. Researchers from the Center for Global Development expect that the IDA's collection of eligible borrowing countries will decrease by half by the year 2025 (marking the 65th anniversary of the association's establishment) due to graduations and that remaining borrowers will consist primarily of African countries and will face substantial population declines . These changes will imply

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3990-426: The IDA grew to 51 member states and loaned $ 101 million ($ 784.2 million in 2012 dollars ) to four developing countries. The IDA is governed by the World Bank's Board of Governors which meets annually and consists of one governor per member country (most often the country's finance minister or treasury secretary). The Board of Governors delegates most of its authority over daily matters such as lending and operations to

4085-533: The IDA heavily depends on contributions from its member states. The IDA received 2 billion in special drawing rights ($ 3 billion USD ) from the IBRD and IFC. Approximately half of the IDA's resources come from the 45 donating member countries. In its early years, the IDA received most of its replenishments from the United Kingdom and United States but, because they were not always reliable sources of funding, other developed nations began to step in and fill

4180-681: The IDA is available to only the countries who are members of the World Bank, particularly the IBRD. Throughout its lifetime, 44 borrowing countries have graduated from the association, although 9 of these countries have relapsed as borrowers after not sustaining their graduate status. To be eligible for support from the IDA, countries are assessed by their poverty and their lack of creditworthiness for commercial and IBRD borrowing. The association assesses countries based on their per capita income, lack of access to private capital markets , and policy performance in implementing pro-growth and anti-poverty economic or social reforms. As of 2019 , to borrow from

4275-652: The IDA lending program, including the Philippines, China, South Korea, Thailand, and India. Of the association's borrowing countries, approximately 20 are in Asia. The association's efforts in South Asia have focused primarily on projects for education, healthcare, transportation , agriculture, and energy . Due to rapid growth in Asian countries' populations, some pockets of poverty have emerged. To mitigate this effect,

4370-481: The IDA's 16th replenishment of US$ 49.3 billion. The IDA's loans and grants are usually not paid in full to the borrower at the outset, but rather disbursed incrementally as needed by the project. Most of the donor countries such as the United States commit letters of credit to the IDA which bear no interest and are not able to be transferred or revoked, and which are exchanged for cash as needed for project disbursal. Other countries pay their contributions in full on

4465-427: The IDA's concessional lending programs, a country's gross national income (GNI) per capita must not exceed $ 1,145. The following 75 countries are IDA borrowing countries. The following countries have graduated from their eligibility for IDA lending. The following countries have relapsed to their eligibility for IDA lending and have not yet re-graduated or have instead become partially eligible (also referred to as

4560-469: The IDA's resources toward financing projects in those countries. As a result of its efforts to improve the region, the IDA has helped bring electricity to an additional 66 million Africans since 1997, helped build or restore 240,000 kilometers of paved roads, and helped enroll an additional 15 million African children in school since 2002. The IDA was approved in May 2012 to provide US$ 50 million worth of credit to

4655-504: The IMF granted preliminary approval to an initial debt relief measure of US $ 3.3 billion for 19 of the world's poorest countries, with the World Bank expected to write off the larger debts owed to it by 17 HIPCs in mid-2006." As of December 2006, twenty-one countries have reached the HIPC completion point. Nine additional countries have passed the decision point and are working toward completion. Ten other countries carry unsustainable debts according to HIPC standards, but they have yet to reach

4750-418: The IMF has modified HIPC in several ways, often in response to the shortcomings its critics have highlighted. The IMF first restructured HIPC in 1999. These revisions modified HIPC's threshold requirements. Today, HIPC defines three minimum requirements for participation in the program. First, as before, a country must show its debt is unsustainable; however, the targets for determining sustainability decreased to

4845-423: The IMF introduced another tool to increase HIPC's effectiveness. Under the new practice of "topping up," countries that unexpectedly suffer economic setbacks after the decision point due to external factors, such as rising interest rates or falling commodity prices, are eligible for increased debt forgiveness above the decision-point level. Further progress towards debt relief was announced on December 21, 2005, when

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4940-563: The Office of Refugee Resettlement uses to help integrate immigrants to America. Government funding sometimes accounts for the vast majority of overall funding for these NGOs, for example Global Refuge received 180 million dollars of its 207 million dollar budget from federal funding. In recent years, government contracts to non-profits have exploded both in number and size. The Budget for the Office of Refugee Resettlement has increased from 1.8 billion in 2018 to 6.3 billion in 2022. Critics point to

5035-538: The President of the World Bank Group. The association and IBRD operate with a staff of approximately 10,000 employees. The IDA is evaluated by the Bank's Independent Evaluation Group . In 2009, the group identified weaknesses in the set of controls used to protect against fraud and corruption in projects supported by IDA lending. In 2011, the group recommended the Bank provide recognition and incentives to staff and management for implementing activities which implement

5130-506: The UN, an NGO is a private, not-for-profit organization which is independent of government control and is not merely an opposition political party . The rapid development of the non-governmental sector occurred in Western countries as a result of the restructuring of the welfare state . Globalization of that process occurred after the fall of the communist system, and was an important part of

5225-532: The United States ultimately opposed proposals of that nature. As the United States grew more concerned over the growth of the Cold War , it made a concession in 1954 at the behest of its Department of State by backing the conception of the International Finance Corporation (IFC). Despite the launch of the IFC in 1956, developing countries persisted in demanding the creation of a new concessional financing mechanism and

5320-651: The Women Entrepreneur Development Project as part of an effort to help women in Ethiopia participate in business as skilled employees or leaders. Although the positive outcomes of the IDA's efforts in Africa had been historically slow, the large allocation of funding to African countries led to positive outcomes particularly within agriculture and infrastructure development efforts. The IDA's efforts in Asia have been particularly successful. Numerous Asian countries have graduated from

5415-528: The World Bank, where the US would have a preponderant voice in the allocation of such loans. Democratic Senator Mike Monroney of Oklahoma supported this idea. As Chairman of the Senate Subcommittee on International Finance, Monroney proposed a resolution recommending a study of the potential establishment of an International Development Association to be affiliated with the IBRD. Monroney's proposal

5510-683: The World Economic Forum, may also act as lobby groups for corporations. Unlike international organizations (IOs), which directly interact with sovereign states and governments, NGOs are independent from them. The term as it is used today was first introduced in Article 71 of the newly formed United Nations' Charter in 1945. While there is no fixed or formal definition for what NGOs are, they are generally defined as nonprofit entities that are independent of governmental influence—although they may receive government funding . According to

5605-570: The World NGO Day, we celebrate the key civil society's contribution to public space and their unique ability to give voice to those who would have went [sic] otherwise unheard. European Commission Vice-President Federica Mogherini , commemorating the 2017 World NGO Day in Brussels Service-delivery NGOs provide public goods and services which governments of developing countries are unable to provide due to

5700-486: The aim to finance projects that will develop infrastructure and improve education, healthcare , access to clean water and sanitation facilities, and environmental responsibility. It is considered to be the soft lending window of the World Bank, while the IBRD is considered to be the hard lending window. The association offers grants and loans with maturities ranging from 25 to 40 years, grace periods of 5 to 10 years, and interest rates of 2.8% or 1.25% depending on whether

5795-428: The borrower is a blend country and to which degree it is eligible. Regular IDA-eligible borrowers may take advantage of no-interest loans. Financial resources are allocated to eligible countries based on their success at implementing pro-growth and a poverty-reducing domestic policies. The IDA uses the World Bank's Country Policy and Institutional Assessment (CPIA) development indicator to determine each country's place in

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5890-460: The completion point. Third, the PRGF heavily modified ESAF by curtailing the number and detail of IMF conditions and by encouraging greater input from the local community into the program's design. One of PRGF's goals is to ensure that impoverished nations re-channel the government funds freed from debt repayment into poverty-reduction programs. To that end, each country's PRGF program is modeled around

5985-455: The cost of services beyond the citizens' ability to pay. Finally, critics attacked HIPC as a program designed by creditors to protect creditor interests, leaving countries with unsustainable debt burdens even upon reaching the decision point. Inadequate debt relief for such countries means that they will need to spend more on servicing debts, rather than on actively investing in programs that can reduce poverty. In 2008, some analysts showed that

6080-457: The creation of a multilateral , concessional lending program for the poorest developing countries. However, the United States was largely unresponsive and ultimately distracted by its involvement in the Korean War and unconvinced that development needed greater financial stimulation. Developing countries grew increasingly frustrated with not being able to afford IBRD lending and perceived

6175-449: The date of commitment to the IDA so that it may cover its operating expenses . Donors receive no return of funds and repayments from borrowers are again loaned to future projects such that donors won't need to commit those funds again in the future. Although the IDA's funds are now regularly replenished, this does not happen without some financial and political challenges for the donating countries. When donor countries convene to negotiate

6270-511: The decision point. So far, the IMF and World Bank have approved $ 35 billion of HIPC debt relief. Five countries have received an additional $ 1.6 billion in "topping up" assistance since 2001. Non-governmental organization A non-governmental organization (NGO) is an independent, typically nonprofit organization that operates outside government control. NGOs often focus on humanitarian or social issues but can also include clubs and associations offering services to members. Some NGOs, like

6365-508: The economic gaps not met by these two countries. Every three years, member nations that provide funds to the IDA gather together to replenish the IDA's resources. These funds come primarily from well-developed countries including the United States, Japan, France, Germany, and the United Kingdom with 58% from the US, 22% from France, and 8% from the UK. As of 2016, there have been 18 IDA replenishment rounds. Fifty-one member countries participated in

6460-456: The fields of humanitarian assistance and poverty alleviation. Funding sources include membership dues, the sale of goods and services, grants from international institutions or national governments, corporate social responsibility (CSR) funds and private donations. Although the term "non-governmental organization" implies independence from governments, many NGOs depend on government funding; one-fourth of Oxfam 's US$ 162 million 1998 income

6555-475: The following ways;: Similar terms include third-sector organization (TSO), nonprofit organization (NPO), voluntary organization (VO), civil society organization (CSO), grassroots organization (GO), social movement organization (SMO), private voluntary organization (PVO), self-help organization (SHO), and non-state actors (NSAs). Numerous variations exist for the NGO acronym, either due to language, region, or specificity. Some Romance languages use

6650-486: The forces that controlled them, whatever the governments concerned might think about the matter." Some NGOs, such as Greenpeace , do not accept funding from governments or intergovernmental organizations. The 1999 budget of the American Association of Retired Persons ( AARP ) was over $ 540 million. In America, government funding of NGOs relating to immigration is common, and is one of the stated methods

6745-525: The full cost, and further funding will need to be raised if additional countries such as Sudan and Somalia meet the qualification requirements for entry into the program. Critics soon began to attack HIPC's scope and its structure. First, they criticized HIPC's definition of debt sustainability, arguing that the debt-to-export and debt-to-government-revenues criteria were arbitrary and too restrictive. As evidence, critics highlighted that, by 1999, only four countries had received any debt relief under HIPC. Second,

6840-505: The good intentions of NGO leaders and activists, he is critical of the "objective effects of actions, regardless of their intentions". According to Shivji, the rise of NGOs is part of a neoliberal paradigm and not motivated purely by altruism; NGOs want to change the world without understanding it, continuing an imperial relationship. International Development Association The International Development Association ( IDA ) (French: Association internationale de développement )

6935-824: The ground by other organizations. Management techniques are crucial to project success. The World Bank classifies NGO activity into two general categories: NGOs may also conduct both activities: operational NGOs will use campaigning techniques if they face issues in the field, which could be remedied by policy change, and campaigning NGOs (such as human-rights organizations ) often have programs which assist individual victims for whom they are trying to advocate. Operational NGOs seek to "achieve small-scale change directly through projects", mobilizing financial resources, materials, and volunteers to create local programs. They hold large-scale fundraising events and may apply to governments and organizations for grants or contracts to raise money for projects. Operational NGOs often have

7030-684: The idea gained traction within the IBRD. Then-President of the IBRD Eugene R. Black, Sr. began circulating the notion of an International Development Association, as opposed to an idea of a concessional named the Special United Nations Fund for Economic Development (SUNFED) governed by the United Nations. Paul Hoffman, the Marshall Plan's former Administrator, proposed the idea of a soft-loan facility within

7125-605: The labour market. In other words, the whole arsenal of ultra-liberal measures which have contributed to the impoverishment of African populations, to the degradation of social services, to fall in life expectancy of over seven years, to the return of diseases we had thought eradicated, to increased unemployment for young graduates, to setting back industrialisation, and to the creation of chronic food shortages. HIPC addressed its shortcomings by expanding its definition of unsustainable debts, making greater relief available to more countries, and by making relief available sooner. Since 1996,

7220-511: The lowest gross national income , from troubled creditworthiness , or from the lowest per capita income . Together, the International Development Association and International Bank for Reconstruction and Development are collectively generally known as the World Bank , as they follow the same executive leadership and operate with the same staff. The association shares the World Bank's mission of reducing poverty and aims to provide affordable development financing to countries whose credit risk

7315-428: The majority of the world's poor people live are not included: China, India, Indonesia, Brazil, Argentina, Mexico, the Philippines, Pakistan, Nigeria, and the like. In fact, the initiative concerns only 11 percent of the total population of developing countries... It must be noted "that to benefit from the HIPC initiative, the countries concerned had to be free of arrears to the IMF and the World Bank. Countries applying for

7410-467: The million-dollar salaries of CEOS and the use of funds for "music therapy" and "pet therapy" as a worrying sign that the money might not be appropriated to help the migrant crisis, but rather as a political move to keep wealthy backers loyal. Overhead is the amount of money spent on running an NGO, rather than on projects. It includes office expenses, salaries, and banking and bookkeeping costs. An NGO's percentage of its overall budget spent on overhead

7505-500: The number of the country's primary schools and health centers. The United States, by comparison, has approximately 1.5 million NGOs. NGOs further the social goals of their members (or founders): improving the natural environment , encouraging the observance of human rights , improving the welfare of the disadvantaged, or representing a corporate agenda. Their goals cover a wide range of issues. They may fund local NGOs, institutions and projects, and implement projects. NGOs can be in

7600-455: The party with the larger valuation need not be optimal when the public good is partially excludable, when both NGO and government may be indispensable, or when the NGO and the government have different bargaining powers. Moreover, the investment technology can matter for the optimal ownership structure when there are bargaining frictions, when the parties interact repeatedly or when the parties are asymmetrically informed. Today we celebrate

7695-478: The party with the more important investment task should be owner. Yet, Besley and Ghatak have argued that in the context of public projects the investment technology does not matter. Specifically, even when the government is the key investor, ownership by an NGO is optimal if and only if the NGO has a larger valuation of the project than the government. However, the general validity of this argument has been questioned by follow-up research. In particular, ownership by

7790-1199: The practice of building and maintaining partnerships with other organizations, stakeholders, and governments to achieve common objectives related to social or environmental issues. NGOs often work in complex environments, where multiple stakeholders have different interests and goals. Diplomacy allows NGOs to navigate these complex environments and engage in constructive dialogue with different actors to promote understanding, build consensus, and facilitate cooperation. Effective NGO diplomacy involves building trust, fostering dialogue, and promoting transparency and accountability. NGOs may engage in diplomacy through various means such as including advocacy, lobbying, partnerships, and negotiations. By working collaboratively with other organizations and stakeholders, NGOs can achieve greater impact and reach their goals more effectively. Tanzanian author and academic Issa G. Shivji has criticised NGOs in two essays: "Silences in NGO discourse: The role and future of NGOs in Africa" and "Reflections on NGOs in Tanzania: What we are, what we are not and what we ought to be". Shivji writes that despite

7885-410: The program as of March 2020. At its meeting on 28 June 2021, the IMF's executive board approved a financing plan to help mobilize resources needed for the fund to cover its share of debt relief to Sudan. This occurred after Sudan's civilian-led transitional government and its cabinet led by Abdalla Hamdok implemented tough economic reforms to reach the decision point. To receive debt relief under HIPC,

7980-447: The public and coordinate large-scale collective activities to advance an activist agenda. Since the end of the Cold War , more NGOs in developed countries have pursued international outreach. By being involved in local and national social resistance, they have influenced domestic policy change in the developing world. Specialized NGOs have forged partnerships, built networks, and found policy niches. Track II diplomacy (or dialogue)

8075-526: The replenishments, there is often intense discussion about redefining the association's goals and objectives or even about reforming the IDA. Due to delays in the United States Congress impeding the approval of IDA funding, the association's members implemented a set of policy triggers outlining the commitment threshold necessary for replenishment to take effect. The threshold imposed a requirement that an aggregate share of 85% in voting stock

8170-478: The same number of qualifications . However, in many cases NGOs employees receive more fringe benefits. NGOs are usually funded by donations, but some avoid formal funding and are run by volunteers. NGOs may have charitable status, or may be tax-exempt in recognition of their social purposes. Others may be fronts for political, religious, or other interests. Since the end of World War II , NGOs have had an increased role in international development , particularly in

8265-481: The six-year program was too long and too inflexible to meet the individual needs of debtor nations. Third, the IMF and the World Bank did not cancel any debt until the completion point, leaving countries under the burden of their debt payments while they struggled to institute structural reforms . Fourth, the ESAF conditions often undermined poverty-reduction efforts. For example, privatization of utilities tended to raise

8360-499: The synonymous abbreviation ONG ; for example: Other acronyms that are typically used to describe non-governmental organizations include: Non-governmental organizations (NGOs) play a vital role in improving the lives of people who have been affected by natural disasters or are facing other challenges. NGOs can act as implementers, catalysts, and partners to provide essential goods and services to those in need. They work to mobilize resources, both financial and human, to ensure that aid

8455-597: The time of the 1932–1934 World Disarmament Conference . The term became popular with the 1945 founding of the United Nations in 1945; Article 71 in Chapter X of its charter stipulated consultative status for organizations which are neither governments nor member states. An international NGO was first defined in resolution 288 (X) of the United Nations Economic and Social Council (ECOSOC) on February 27, 1950, as "any international organization that

8550-449: The tools of the incomplete contracting theory. According to this theory, not every detail of a relationship between decision makers can be contractually specified. Hence, in the future, the parties will bargain with each other to adapt their relationship to changing circumstances. Ownership matters because it determines the parties' willingness to make non-contractible investments. In the context of private firms, Oliver Hart has shown that

8645-468: The total cost of providing debt relief to the 40 countries currently eligible for the HIPC program would be around $ 71 billion (in 2007 dollars). Half of the funding is provided by the IMF, World Bank, and other multilateral organizations, while the other half is provided by the creditor countries. The IMF's share of the cost is currently being funded by the proceeds of gold sales by the organization in 1999, but it estimated that this will not be enough to cover

8740-441: The type of activities an NGO undertakes, such as activities involving human rights , consumer protection , environmentalism , health , or development; and (2) level of operation, which indicates the scale at which an organization works: local, regional, national, or international. Russia had about 277,000 NGOs in 2008. India is estimated to have had about 2 million NGOs in 2009 (approximately one per 600 Indians), many more than

8835-488: Was attended by representatives of over 1,000 NGOs. The 1992 Earth Summit in Rio de Janeiro , attended by about 2,400 representatives, was the first to demonstrate the power of international NGOs in environmental issues and sustainable development. Transnational NGO networking has become extensive. Although NGOs are subject to national laws and practices, four main groups may be found worldwide: The Council of Europe drafted

8930-648: Was donated by the British government and the EU, and World Vision United States collected $ 55 million worth of goods in 1998 from the American government. Several EU grants provide funds accessible to NGOs. Government funding of NGOs is controversial, since "the whole point of humanitarian intervention was precise that NGOs and civil society had both a right and an obligation to respond with acts of aid and solidarity to people in need or being subjected to repression or want by

9025-523: Was more preferred received within the United States than the SUNFED. The resolution passed the senate in 1958, and then- U.S. Treasury Secretary Robert B. Anderson encouraged other countries to conduct similar studies. In 1959, the World Bank's Board of Governors approved a U.S.-born resolution calling for the drafting of the articles of agreement. SUNFED later became the Special Fund and merged with

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