Non-Governmental Organizations (NGOS)

Almost all types of private organizations that can demonstrate independence from government control and establish an overall mission focusing on a public good can be categorized as a non-governmental organization (NGO). The term non-governmental organization was first coined in 1945 by the United Nations. The term NGO helped the United Nations differentiate in its charter the intergovernmental agencies from private organizations and their respective participation rights. Although the name itself was coined in the 20th century, the idea behind charitable and community organizations has existed throughout history. Their visible impact on policy and their ability to initiate change from the bottom up can be seen from the anti-slavery movement that started in England in the 18th century and gave birth to the World Anti-Slavery Convention. Soon after, the World Alliance of Young Men's Christian Association (YMCA) was founded in 1855. Eight years later, the International Committee for the Red Cross was founded and is still one of the most recognized and respected NGOs. Therefore, even before the term NGO came into existence, the concept behind organizations operating independently from government was present.

According to the United Nations Economic, Scientific and Cultural Organization (UNESCO), the [Page 1040]term NGO was the result of the lobbying efforts of a group of private organizations during the San Francisco conference in 1945 that established the United Nations. The original U.N. charter did not refer to any form of cooperation with private organizations. The private organizations that were labeled under the League of Nations in 1910 as the Union of International Associations maintained that in order for the United Nations to be successful it would need to formalize the relationship with government actors and non-governmental organizations. Their lobbying efforts were a success, and the term nongovernmental organization was included in Article 71 of the U.N. charter. For decades the term was restricted to U.N. jargon, but from the 1970s onward NGO began to be a popular term globally.

There is no one set formula for establishing an NGO. There is a wide range of structures that are applied within the internal structure of an NGO. Some are membership organizations and represent thousands of people, while others may bring together the elite or intellectuals of a particular community. The missions cover a broad range of issues, from women's rights to free elections to the environment to trade unions. Similarly, NGOs are not defined or limited geographically. They can work in a village or a city, rural or urban, at a national or international level. The public good that may be offered by an NGO can be something tangible such as food or blankets or may be more of a service such as legal advice or awareness campaigns. In theory, NGOs are designed to represent the communities they work in. They may represent the interests of the elite in the society or, as is more common in the last decade, the interests of a large constituency. The latter approach is usually referred to among NGO practitioners as grassroots participation.

No matter what the issue, location, or service an NGO may offer, its impact on a national and globally cannot be denied. In fact, many economists have begun to refer to the NGO as a third sector or third wave, distinct in its role and impact from government/military and private/business actors. The third sector has proven to have had a vital economic impact. Through a series of small loans to the poorest of the poor, a local NGO in Bangladesh founded by Muhammad Yunus revolutionized the banking sector. Based on research he conducted in 1976, the Grameen Bank was formulated and has reversed conventional banking practice by removing the need for collateral and proving that a banking system based on mutual trust, accountability, participation, and creativity can be successful. The third sector plays a significant role in a country's economy, and in some countries where there are large NGO programs, NGOs can play a vital role in creating jobs and stimulating local economies.

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