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About NDF 2000

Background Papers

The Role of Civil Society in Development and Poverty Reduction
A Paper Prepared by His Majesty's Government of Nepal for Purposes of the Nepal Development Forum (NDF)
April 17 - 19, 2000 (Paris)

Introduction

PART ONE: Civil Society, Its Characteristics and Role
    1.1 General Definition
    1.2 Background of Civil Society in Nepal
    1.3 More on the Definition of Civil Society
    1.4 Scope of Civil Society
    1.5 Civil Society's Comparative Advantage
    1.6 Limitations and Responsibilities of Civil Society
    1.7 Role of Federations


PART TWO: The Role of His Majesty's Government
    2.1 Commitment to Autonomy
    2.2 Provide Opportunities for Federation
    2.3 Transparency and Internal Democracy in CSOs
    2.4 Communication and Participation in Planning
    2.5 Civil Society Participation in Achieving HMG Targets
    2.6 Equity Considerations

PART THREE: The Role of Donors
    3.1 Donor Co-ordination
    3.2 Support Efforts to Strengthen Civil Society-HMG Links


Conclusion and Recommendations for Follow-Up

Bibliography

Introduction
1. A draft paper was first developed to generate feedback from civil society organisations on the role of civil society in national development. This paper was presented by Dr. Koirala, Special Secretary of the Ministry of Finance to a representative group of civil society, Government and donors on February 15, 2000. Feedback generated has since been used to develop this revised discussion paper to be presented by the Ministry of Finance at the Nepal Development Forum.

2. This paper highlights three key policy directions. HMGN:
  • is committed to good governance and creating an enabling environment for civil society
  • recognizes civil society's potential to contribute to development
  • seeks to improve the participation of civil society organizations in development


3. HMGN encourages a legitimate system of governance and civil society. It recognizes that civil society organizations have the potential to contribute to not only the development efforts of the country but also dialogue and awareness of development issues. Civil society organisations are often well suited to building a sense of ownership towards community based projects in addition to involving people in a direct and decisive form through social mobilization in the decision making process related to the management of development activities in implementing their own areas.

4. The participation of civil society organizations in development activities will be stressed. HMGN is committed to people's involvement in the planning process. In order to encourage and promote local development in line with the decentralisation process, His Majesty's government has already framed Acts and regulation relating to local bodies. The Ninth Plan has put stress on enlarging people's involvement in the planning process as much as possible. For ensuring people's participation in the decision-making process regarding development activities and their management carried out in their own areas, and also for making people feel a sense of ownership with regard to local plans, the support of civil society could be useful.

5. HMGN is looking forward to strengthening links between civil society and government to enhance development effectiveness and good governance. This has been expressed in the Local Self-Governance Act, the 9th Five Year Plan, the Constitution and other key documents of His Majesty's Government.

6. In line with His Majesty's Government's expectation of the role of civil society in development and poverty reduction, HMGN commenced a consultative process seeking the involvement of civil society to express their potential contribution to the government and vice versa. This process underlined HMGN's commitment, but also emphasized the need for donors to support effort to strengthen HMGN's systems and capacity, parallel His Majesty's Government's efforts to increase the involvement of civil society in development.

7. This paper is designed to clarify the concept of civil society, and to put forth constructive ideas to make the most of collaboration with civil society. The first part looks at the definition of the concept of civil society and discusses the characteristics and expected role and responsibilities of civil society. The second part discusses the role of His Majesty's Government, especially to create an enabling environment for civil society in Nepal and to re-think ways to involve civil society in planning and implementation of development efforts. The third part raises issues and suggestions related to the role of donors in the promotion of civil society.

Civil Society, Its Characteristics and Role

1.1 General Definition
8. Civil society is a concept borrowed from the thinkers ranging from Locke to Hegel and dates back over two hundred years. Resurrected in the context of development and good governance, it has emerged as a key concept in the development scene. Although it is a Western term, it is not at all a foreign phenomenon. Throughout history, civil society has existed in Nepal and even played a role in democratisation. However, under democracy, civil society has been able to flourish. In present day Nepal, civil society is a critical element as a partner with the state and the market in promoting good governance and equitable and sustainable development.

9. Civil society is defined as the sphere of voluntary organisations and organised activities that are neither part of government, business, nor family, either delivering services or trying to influence development policies and practices of key stakeholders in society.

1.2 Background of Civil Society in Nepal
10. The term itself has emerged only recently in Nepal, especially since the restoration of democracy. Notwithstanding the terminology, in practice, civil society has a long history in Nepal. P.P. Timilsna writes that:"[the} majority of the Nepalese have the tradition to work for public interest through community based organisation." (P.P. Timilsina, "Civil Society Organisations: Their Dilemmas and Perspectives," in Social Development and INGOs Activities in Nepal, p. 21.) Mr. Timilsna and Dr. Nepali cite Guthis, Bhajan groups and cultural groups as examples of civil society organisations, and date the written history of such groups back to the Kamadhenu Charkha Pracharak Guthi (the spinning wheel propagating trust in 1926. Civil society played an important role in the overturn of the Rana regime and raising the people's awareness in favour of democracy.

11. Dr. Rohit Nepali cites various types of civil society organisations that have existed over the last few hundred years. For example, he relates the role of civil society organisations in relief efforts in the first half of the 20th century. He points out the role of Charkha Pracharak Samasthan in the dawn of the new democracy in 1951, and the activities of civil society to raise social awareness.

12. However, civil society has until recently been controlled and limited. For example, it was suppressed under the Rana Regime that, according to Dr. Nepali, "could not tolerate the activities of the movement which helped generating social awareness among the common people." (p.4, Rohit Kumar Nepali, Civil Society: Voice to the Powerless People, 1997)

13. The growth of civil society corresponds with the emergence of increase freedoms and democracy. After World War II, His Majesty's Government of Nepal began proactively promoting civil society, in the interest of community development:

"In early 1950s, the government itself took the leadership to launch community development movement with the assistance of United States of America and India. The Tribhuvan Gram Vikash Movement was initiated by the government to improve the conditions of the rural areas. These efforts of the government led to form some people based organisations. Some of the CSOs like Family Planning Association, Nepal Redcross Society, Paropakar Sanstha were established with the initiation of the people to help the need people." (Ibid., p.21)

14. It was not until the 6th Plan (1980-85) that a policy on non-governmental organisations was first developed. At that time, other policies relating to CSOs were poorly designed to the promotion of a strong civil society. However, following the restoration of democracy in 1990, major reforms have emerged for the development of CSOs. The regulations governing societies (NGOs) have allowed for exponential growth in this sector. From 1992 till 1997, it is estimated that the number of (registered) societies had almost tripled. For instance, by the end of this period some 15,000 NGOs were registered and today the figure is as high as 30,000 (including an estimated 6,000-8,000 development NGOs - NGDOs). However, there is considerable on-going debate about the registration process and other aspects of the legal environment for NGOs. The Societies Act has undergone significant modifications and improvements. Yet, as the movement grows, there is a need to continuously review the rules and regulations to suit the needs of this sector. This review should, of course, incorporate the views and participation of NGOs. The Co-operative Act 1992 which accords greater autonomy for co-operative societies to organise according to international co-operative principles. This Act is also undergoing further amendments. The Forestry Act, including the provision for the formation of forest user groups to manage the community forest, is another example of such reforms. Thousands of other CSOs have also emerged and have been registered under various acts.

15. In other words, civil society has a long history in Nepal, but this sector has undergone massive changes and growth and recent years. In particular, with the restoration of democracy, civil society has emerged as a leading sector of actors in development activities. This change reflects the strengthening of our democracy and the widespread recognition of the comparative advantage of many organisations in this sector to work effectively at the grassroots and in the promotion of the needs of voiceless and disadvantaged groups.

16. However, these changes are the beginning rather than the end. With the rapid growth in this sector since 1990, new issues are emerging, and often bring the need for support and changes in regulations.

1.3 More on the Definition of Civil Society
17. HMGN recognizes that civil society is a broad concept that encompasses a variety of autonomous organisations that are neither dependent nor reduced to corporate and state power. Civil society organisations should be voluntary, i.e. citizens voluntarily join, of their own free will. Caroline Harper defines civil society as: "a voluntarily formed body of organisations situated between the state and the household which operates to pursue commonly identified goals." (Harper, p.125)

18. Civil society is a natural sphere of activity that, unless it is denied or squashed by government, will emerge in any society: "In any country," writes Lars Jorgensen, "its citizens need to organize to protect their families, develop their agriculture or crafts, form some health service or educational initiative, arrange for their burials and so on." (Jorgensen, p.40). It is both an area of democratic dialogue and contestation, as well as a sphere for collective action. Lars Jorgensen describes civil society as "a meeting-place for debate and common endeavour. "Civil society allows the citizens of a country to act for what they think is the benefit of society; it gives room for debate on the direction of social development, it makes it possible for people to influence government and business." (Jorgensen, p.36) The literature also often portrays civil society as a harmonious sector. The reality is that civil society organisations often present conflicting or competing agendas. Civil society is a forum for collaboration, but it is also a space for debate and competition. Civil society organisations represent different segments of the population, and, hence, different points of view, interests and policy agendas.

19. CSOs are motivated by different and varying public interests, ranging from economic development to education and cultural development Many organisations are focused on the implementation of development activities, while others act more as advocacy or special interest groups. Some are politically affiliated or family based, while others are non-partisan with a membership policy to ensure access to deprived groups. HMGN recognizes that, in a democratic society, under the Constitution, these groups are entitled to freedom of expression and can contribute to the national dialogue about social, economic and cultural development issues. However, because of the political affiliations and closed nature of some organisations, HMGN may not be able to involve all civil society organisations in the implementation of development activities.

1.4 Scope of Civil Society
20. Most frequently we tend to equate civil society with development NGOs, and neglect the myriad other types of organisations in civil society. In the Nepalese context, the term "association" (under the sangstha ain/Societies Act) is broad and cannot easily be attributed one set of characteristics. Some may be close to communities, democratic and committed, while others may be poorly governed unaccountable organisations run by one or two persons. Concomitantly, other civil society organisations are widespread and are active in community development in Nepal. As the figures below clearly demonstrate, there are tens of thousands of CSOs in Nepal, including fewer than ten thousand development NGOs.

21. Each form of CSO has its respective strengths and weaknesses. To strengthen civil society means creating an environment conducive to various types of organisations representing various interests.

22. In fact, the key challenge of the civil society concept is that it encompasses a wide variety of organisations. One the other hand, the notion of civil society is useful to highlight those organisations that have fallen in the void between the state and business sectors.

23. The various kinds of organisations and organised activities in "civil society" may include:
  • non-government development organisations (NGOs)
  • co-operatives
  • unregistered savings and credit organisations
  • user groups
  • professional associations


24. The size and diversity of civil society can be overwhelming. On one hand, large professional NGOs and tiny community-based organisations (CBOs) co-exist under one name. Second, the number of CSOs is in the tens of thousands and probably over a hundred thousand. For example, there are roughly 6,000 co-operatives in Nepal, an estimated 12,000 unregistered savings and credit organisations (CECI, 1996), 30,000 registered societies (30,000 registered with the CDO; 6-8,000 development NGOs), and nearly 9,000 forest user groups. Taking these four types of CSOs alone, there are an estimated 57,000 CSOs in the country, of which about 10-15% are NGDOs (non-government development organisations).

1.5 Civil Society's Comparative Advantage
25. Throughout history, civil society has existed in Nepal and even played a role in democratisation. However, under democracy, civil society has been able to flourish. Civil society is part of Nepalese history and traditions.

26. In present day Nepal, civil society is a critical element in the country's struggle to achieve equitable and sustainable development. Consider these elements:
  • Where gender inequality, isolation and poverty persist, civil society plays an important role in the representation of disadvantaged groups.
  • Civil society organisations have a comparative advantage in community-based and awareness raising efforts to effect social change and meet the needs of the people.
  • Many organisations, such as forest user groups, savings and credit organisations and co-operatives are appropriate mechanisms for the mobilisation of local resources.
  • Civil society is a tool to give a "voice to the voiceless," and give clout to the powerless, not only vis-à-vis government, but also in relation to the business sphere. Producers' Associations, for instance, can empower small producers in the face of larger market players and barriers to the export of produce. Small producers working alone are ill equipped to improve their lot. However, together with hundreds of others in a co-operative, they collectively have the ability and clout to strengthen production and compete in the marketplace.
  • Civil society contributes to the democratisation process by organizing citizens to ensure their interests are better represented in business and government spheres. This is especially important in Nepal, where large segments of the population lack education or experience in voicing their concerns openly. CSOs can serve as a tool to put forth people's concerns. In doing so, they develop people's understanding of the democratic system and their own capacity as actors in the development process. When CSOs become active in collective efforts to improve the community, they can also link with government and government services, thereby promoting the reciprocal accountability of the government and civil society spheres.
  • Civil society organisations, such as non-government development organisations (NGDOs), are well suited to raise community awareness and channelling resources to meet basic needs. The comparative advantage of CSOs resides in their responsiveness to needs, their motivation and creativity.
  • CSOs, such as advocacy groups and the media, play a critical role in providing information and generating debate and awareness on important social issues.
  • Civil society can serve to strengthen democratic values. CSOs can enhance the accountability of the state and serve to better articulate the concerns and recommendations of its members. For instance, women's organisations band together to fight for the recognition of women's rights as human rights, and daalit organisations exist as an expression of the needs and concerns of some of the members of that community.

    27. In summary, the role of civil society is both to strengthen structures to demand government accountability and the decentralisation of decision-making, and as a natural mechanism to organize people undertaking collective efforts. Due to their flexible structure, autonomous status and less bureaucratic approach, certain civil society organisations, such as NGOs and CBOs, are the most effective mechanisms to generate civil awareness and deliver social services.

    28. The potential roles of civil society organisations in development and poverty alleviation include:

    1. Role of Empowerment
      Some could act as mechanisms to generate awareness. Their role in this context is to develop the capacity of the community to assess and harness the energy, mobilise the resources of the community and build their confidence to undertake the challenges themselves.
    2. Role of Catalyst
      Some can effectively undertake the role of a catalyst by acting as a go-between, between the government and the community. Many INGOs use NGOs as local implementing bodies to undertake programmes and even form and strengthen community-based organisations.
    3. Role of a Facilitator or Intermediary
      Government services may be available but due to a number of reasons, the community not use these services. Under such circumstances, community-based organisations or NGOs could effectively perform the role of a facilitator or social intermediary. An example of this is a bank linkage programme, using NGOs as intermediaries to help the poor obtain loans from formal financial institutions.
    4. Role of an Information Promoter or Advocate
      Some organisations may be advocates or information sources rather than practitioners. Their role is to raise the awareness of the public or key stakeholders. The media, for example, seeks to share information and generate debate about issues of public concerns. Other organisations, such as lobby groups, may exist to promote specific issues or to voice the concerns of a specific group within the population.
    5. Role of Service Provider
      Many civil society organisations exist to provide a specific service or services. Civil society organisations such as Dhikuti (rotating or ascending savings and credit associations) have existed for centuries in Nepal and are the natural response in the informal sector to the non-existence of the formal financial sector to provide need-based financial services.


    29. In Nepal, there is a need to define our own path to facilitate the involvement of CSOs, according to its own unique situation. Civil society can be expected to contribute to development in different ways, depending on the context.

    "The role of civil society has played the role of a watchdog of democratic transition in Eastern Europe, as an element of renewal of civic virtue in America, as a politics of reconstruction in Africa, as an instrument of people's power in the Philippines, as democratic development in Asia and as a network of serving public good in many developing countries." (Shrestha 1998:3)

    1.6 Limitations and Responsibilities of Civil Society
    30. CSOs, be they CBOs, NGOs, co-operatives, user groups or any other type of organisation, are often perceived as either organizations with political motives or contracting agents in search of donor funds. Their capacity has also been questioned, and, given the heterogeneity of this sector, their role in development has also been unclear. It is important to recognize these perceptions and the weaknesses of many NGOs.

    31. On one hand, civil society has a lot to offer development in Nepal. Civil society can:
  • help meet national targets by providing services more effectively
  • hold local government and line agencies accountable for commitments
  • promote co-operation across the lines and cleavages within the community
  • raise public awareness and bring up important issues for discussion with policy-makers

    32. On the negative side, criticisms have emerged that civil society organisations:
  • can be politically motivated
  • can be more critical and vocal without bringing anything constructive (this may not make a positive contribution to fulfilling HMGN's goals)
  • may not accept the democratic process
  • may not follow transparent hiring and accounting practices
  • may be primarily profit- and not service-oriented, despite their registration as a non-profit.
  • tend to work in relatively better off areas rather than remote areas.

    33. HMGN also recognizes that, given this diversity (i.e. the heterogeneity of civil society), different sets of criteria are needed for different types of civil society organisations. HMGN is committed a facilitative approach and the building of an enabling environment. We encourage efforts by civil society itself to take the lead. This might involve, for instance, strengthening the weight and implementation of initiatives such as the Co-operative Principles and the NGO Federation Code of Conduct, with a view to improved self-regulation of civil society. To the greatest extent possible, civil society should lead this process.

    34. Consequently, this means that CSOs themselves, should introduce and implement their own standards to ensure that organisations are not simply motivated by various exemptions and privileges. It is the responsibility of civil society to work to minimize abuses and ensure quality. The Ministry of Finance is particularly preoccupied with the role of donors and their responsibility for supporting to strengthen CSOs. A competitive atmosphere among the CSOs will certainly help NGOs and CSOs to be constructive by improving overall performance. With this change we can expect efficient and competitive NGOs and CSOs thereby eliminating the mere motivation of existing exemptions privileges and support of donor INGOs.

    35. The involvement of civil society organisations in dialogue and planning should be as inclusive as is practically feasible, but should be clearly organised in terms of sectoral groupings. As far as the increased collaboration with civil society, HMGN is open to examining new types of relationships, such as contracting out development work to NGOs and CBOs. However, there is a need to consider ways to assess civil society organisations and set standards to ensure quality. HMGN cannot partner with, provide support, or contract out work to partisan civil society organisations, for example, i.e. development activities cannot be promoted on a partisan basis. Ideally, community-based organisations involved in the direct implementation of development activities and programmes should be:
  • committed to meeting the needs of the poor and disadvantaged in society.
  • representative and democratic, i.e. voicing the interests of the public they represent
  • committed to professional and effective management and clear and transparent financial operations.
  • gender balanced (both membership and the management)
  • transparent and committed to the appropriate use of funds
  • democratically run (including a constitution approved by the members, reflecting their specific concerns and vision)
  • inclusive (e.g. co-operative principles), so as to promote harmony and co-operation. Promoting those that are exclusive (e.g. to gender, race, ethnicity, caste, etc.) could in fact put government in a position of deepening the cleavages
  • active and constructive. To reap the benefits, government needs to focus on those partners that have a proven ability to take action in the community. However, civil society partners should be allowed to be critical.
  • member-based. A society (sangstha) in Nepal may have as few as 7 members. It is important that organisations are representative of a good number of people with common concerns.
  • non-partisan. Party organisations have an important role in democracy, but they should not be seen as civil society partners in development.

    They should also:
  • have an open (non-discriminatory and gender-sensitive) membership policy
  • report to the public and the government
  • liase with local authorities in order to co-ordinate development efforts
  • play a role in providing input in the planning process and support these development priorities whenever possible, strengthen the efforts to reach developmental targets
  • comply with tax laws, regulations and reporting requirements
  • accept the rule of law and the democratic system and process.

    36. However, different sets of criteria may be needed for different types of civil society organisations, such as NGOs, forest user groups or co-operatives. The above list is a general set of criteria, but HMGN is open to and encourages civil society to take the lead in, not only putting these standards on paper, but in their active and strict implementation.

    1.7 Role of Federations
    37. A challenge for both civil society and government is to facilitate communication at the district and national levels. Many civil society organisations work in relative isolation, occasionally raising issues to the national level. Civil society must make an effort to participate in the planning process and commit to on-going two-way communication between government and civil society.
    • At the local level, this means that civil society organisations should strive to make positive contributions to planning.
    • At the central level, federations must work constructively to create links with government.


    38. Federations and associations of civil society organisations could play an increasingly important role in:
    • enhancing the effectiveness and professional capacities of its members;
    • disseminating best practices; and
    • establishing and implementing codes of ethics and standards and guidelines, including strict eligibility criteria to ensure quality control.
    While the government is ultimately accountable for supervision and monitoring, civil society must assume greater leadership. Ideally, civil society should set its own stringent standards for conduct, financial management, governance, commitment and transparency.

    39. Unfortunately, the current legislative framework means that there are too many types of organisations registered as NGOs. This undermines effectives federation, self-regulation and representation.
    { TOP }

    2. Role of HMG:
    Strategies to Create an Enabling Environment for Civil Society

    40. His Majesty's Government of Nepal (HMG/N) has created growing opportunities for civil society over the last decade. We understand the important role of civil society and the enabling environment in which civil society will flourish and contribute to development and good governance. Specifically, the government is encouraged to promoting improvements in the legal frameworks affecting civil society organisations, with a view to enhancing the transparency and democratic governance of civil society organisations.

    41. HMG is committed to the autonomy of CSOs and eliminating cumbersome procedures for registration and related requirements. At present, thirty-five to forty steps are required to conclude an agreement. HMG is committed to setting up a one-window system to simplify procedures. This would involve a review of registration, renewal, approval, and submission of reports to the CDO (Society Registration Act 1977) and/or the SWC (Social Welfare Act 1992).

    42. HMGN is also open to a joint review and redrafting, by the Government and CSOs, of relevant laws and regulations. The rules surrounding NGOs' constitutions, in particular, should be revised to ensure that NGOs develop their own constitutions within set guidelines.

    43. Various ministries are involved in the regulation and support of civil society. Hence, it is necessary to group CSOs sectorally and ensure groupings of CSOs with common structures and objectives. For some, such as FUGs, this can take place through FECOFUN, for example. In particular, the Societies Act is outdated, and encompasses a wide variety of very different organisations.

    2.1 Autonomy of Civil Society Organisations

    44. HMG/N is looking forward to maintaining, respecting and enhancing the autonomy of democratically run civil society organisations. The contribution of these organisations will be greatest when they are allowed to function democratically and without outside interference. In fact, ideally, CSOs should first be accountable to their members (thus the need for internal democratic processes and transparency) and then to society, represented by the Government. Our experience with co-operative is a clear example of this. In other words, His Majesty's Government is committed to a policy whereby it will not seek to control CSOs, but rather provide a framework to ensure the greater accountability of civil society organisations to the people. Likewise, links between government and business and civil society may be structured, but the sector itself cannot be rigidly framed without stifling its role in democratic society.

    45. The history of co-operatives in Nepal is a case study that clearly demonstrates the importance of the autonomy of civil society. Co-operatives in Nepal prior to 1992 were largely a failure. Because of the policy adopted in the past, most of the co-operatives were, until recently, weak at best. Until recently, the unique nature of co-operatives, as private member-owned legal entities, was not well understood in Nepal. Past policies treat co-operatives, not as civil society organisations, but as state enterprises, and tried to control them as if they belonged to the government. But in 1992, His Majesty's Government revised the Act that governs co-operatives and is no longer engaged in their direct promotion and management.

    46. Given the failures of the past, and despite the improvements in the policy environment, some are still leery of co-operatives as a structure for community-based organisations. However, developments of recent years and successes and innovations in co-operatives give reason for renewed hope in the co-operative model. The experience of the new generation of co-operatives in Nepal is relatively new, but has been quite positive and encouraging. When these organisations respect co-operative principles and are service-oriented, and owned and operated by their members, their potential is considerable, especially given the needs of small producers to be organised and gain market leverage. His Majesty's Government feels that there is tremendous potential for upliftment in economic prosperity of common people. It is timely to solve past problems and explore new possibilities.

    47. The recent experience also reveals some interesting innovations in co-operative management. While the history of this new generation of co-operatives is quite recent, experiences since 1992 provide examples of excellent services providers that appear to be quite sustainable. These lessons learned must be disseminated, and His Majesty's Government and civil society have a role in raising awareness of the potential of co-operatives. However, the lesson does not only apply to co-operatives. The clear lesson learned is that government should not be involved in the direct promotion of civil society, but rather, will play a facilitating role and create an enabling environment. We should also be leery of blueprint approaches that promote organisations that are not autonomous and are dependent on government or project support for survival. For instance, "mass organisations" created under blueprint programmes can play an important role in facilitating participation in development, but their lack of sustainability and community ownership may even undermine the role of autonomous civil society organisations, unless due attention is given to co-ordination between these mass organisations and CSOs.

    2.2 Provide Opportunities for Federation

    48. Regulations will be re-examined to allow greater flexibility for the formation of district, region and national federations. This should allow for federations of like-minded organisations, and goes hand in hand with the changes recommended in points 41 and 43 (for a review of the Societies Act in particular).

    49. Civil society, like the private sector, will never be neatly organised. Civil society organisations may join together on one issue and splinter on the next. Federations may also divide into factions. Moreover, different federations will present conflicting and sometimes competing viewpoints, based on their particular perspective and interests. For observers, this can appear confusing and unmanageable. However, paradoxical as it may appear, the diversity of perspectives is in fact a reflection of the strength of civil society and the nature of democracy.

    50. A challenge for both civil society and government is to facilitate communication at the district and national levels. Many civil society organisations work in relative isolation, occasionally raising issues to the national level. Alone, such organisations face incredible hurdles to be heard or acknowledged. Alone, they are also ill equipped to strengthen their own work and increase collaboration with the private sector and government. Through federations, they have a chance to raise issues and work with representatives at the national level to ensure their voices are heard. For government, federations channel the collective message of hundreds or even thousands of organisations through one organisation. This makes it possible for government to keep in tune with the issues of civil society more efficiently and effectively. For example, there were over 8,700 forest user groups in Nepal in 1999, but over 4,000 were bound together through the federation known as FECOFUN. This creates an opportunity for more effective dialogue between government and civil society.

    2.3 Transparency and Internal Democracy

    51. HMG/N will seek to improve regulations to ensure their transparency and democratic structure. Transparency is about more than just auditing. The challenge now is for civil society from within to promote greater transparency.

    52. HMG/N feels that the public, and civil society organisation (CSO) members in particular, should have free and open access to information on their budget, funding, rules, regulations and major activities. Ideally, this means providing free access to information about both governmental and civil society organisations.

    53. The validity of expressions of concerns by CSOs can be judged based on the extent to which these represent the interests of the public they are meant to represent. Validity is further strengthened by numbers, such as federations of CSOs expressing similar concerns across the nation. Validity is also strengthened by the open, representative and democratic nature of the CSOs. This may be assessed based on whether or not an organisation is:
    • member-owned and controlled;
    • based on one member, one vote;
    • gender balanced (both membership and the management);
    • has an membership policy to ensure disadvantaged groups are not excluded; and
    • democratically run.


    54. For instance, the majority of savings and credit co-operatives share the government's concern that the Co-operative Act may be used as a cover for some to use as a tax-free shelter for what may otherwise be defined as a finance company. As such, government, the private sector and civil society all share an interest in improving the rules and regulations to ensure transparency and clarify the rules and regulations regarding civil society.

    55. For His Majesty's Government, it is also a question of ensuring the proper use of foreign support. In brief, a lack of transparency leads to a lack of confidence. Lack of transparency will only hinder the work of organisations and the civil society sector as a whole. The government worries about NGOs using their status for their own gain rather than community development.

    2.4 Communication and Participation in Planning

    56. HMG/N is looking forward to providing opportunities for civil society to participate in the planning process and providing channels for the on-going two-way communication between government and civil society.
    • At the local level, this means increasing opportunities for civil society organisations to participate in planning.
    • At the central level, the government is open to creating links with federations representing national level concerns of organisations working in specific sectors.


    57. This would ostensibly involve global meetings as well as sector-wise meetings. For example, in the forestry sector, this might include meetings between the Federation of Community Forest Users, Nepal (FECOFUN) and the Ministry of Forestry and Soil Conservation (MFSC), which is usual.

    58. His Majesty's Government is committed to involving a wide range of organisations in local planning and the potential for increased CSO involvement in implementation. Women's associations, FUGs, Water User Groups, savings and credit co-operatives, producers' associations, community organisations, women's groups, professional associations, amongst others, all can play a role in local planning.

    59. In the context of the Local Self-Governance Act, it is important to recognize the variety of roles that CSOs can play and provide opportunities to document and critically review the evolving relationships between DDCs, VDCs and CSOs. Particular attention will be needed to ensure that information about priorities and district issues are widely disseminated (to CSOs but also to the general public and the private sector).

    60. Despite the hope that all CSOs will work together in harmony, given the diversity and number of organisations and organised activities involved, His Majesty's Government recognises that this could be an unrealistic expectation. At best, we can hope that government will collaborate with civil society, and that CSOs with common objectives and interests may co-ordinate their activities and form collective voices. Obviously, this will be difficult for His Majesty's Government to manage. Hopefully, improvements in the legal framework, allowing for the former of federations and the review of the Societies Act will help in this respect.

    61. The Government has not yet elaborated how to involve CSOs in poverty reduction and but rather, is seeking effective ways to work with them. The Government has expressed its openness to acting as a facilitator, not a controller, and is willing to create a partnership with civil society. However, HMG is also looking for suggestions on how to structure this new arrangement. The challenge for civil society is to determine and clearly articulate how they want to engage with HMG.

    2.5 Civil Society Participation in Achieving HMG Targets

    62. His Majesty's Government is ultimately accountable to the people to reach national planning targets. Nevertheless, the government alone cannot take on all the challenges of development and poverty alleviation on its own given its resources availability and so on. Civil society may also be an efficient channel for funding poverty alleviation programmes. His Majesty's Government is committed to exploring the potential to use the comparative advantages of civil society organisations to achieve HMGN targets by contracting out work to civil society organisations.

    2.6 Equity Considerations

    63. Civil society is perhaps even more important in Nepal than in many other countries. Nepal is an ethnically and geographically diverse country, and many communities are isolated, due to lack of infrastructure such as roads and telecommunication. Many groups are also isolated by social factors. Women in particular are often not able to find a voice in public forums, due to social restrictions as well as lack of access to education, lack of mobility and lack of time, due to the heavy workload that women bear. As such, half of the population faces major challenges to participate fully in the democracy. Many disadvantaged groups have been neglected, despite their needs. For many, civil society is a way to give them a collective voice to be heard by those in power.

    64. For the benefits of development to accrue equally within the community, efforts to involve civil society and strengthen CSOs should aim to ensure the equitable and even priority participation of organisations representing deprived and oppressed groups. This should take into consideration issues of ethnicity, caste and gender. A two-pronged strategy is appropriate here: a) supporting the growth of CSOs that work with women and disadvantaged groups; and b) recognising the shortage of CSOs that work with these groups and a commitment to ensure that poor people and areas are included in development processes.

    65. Therefore, given our commitment to democracy and less advantaged segments of society, HMG will focus its efforts on the civil society organisations of (and involving) disadvantaged groups including poor women and occupational castes. We recognize that these organisations can serve as both a forum for collective action and a voice to influence the decision-making process. We also feel the need to emphasize that the gender perspective is an essential element of strengthening the democratic process and improving efforts to reduce poverty.

    66. We also recognize that strengthening civil society requires practical interventions such as education to girls to ensure equal opportunity later in life, and interventions that reduce women's work burden and free up time for participation in civil society.

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    3. The Role of Donors

    67. HMG/N expects donor practices to support HMG efforts to create an enabling environment for civil society transparency and accountability, and maximize the contribution of civil society to development. HMGN encourage donors to focus on:
  • efforts to strengthen CSO capacity as well as CSO federations
  • strengthening the capacity of HMGN to gather information and co-ordinate civil society involvement in development efforts.

    3.1 Donor Co-ordination

    68. Donor efforts should be co-ordinated and include not only efforts to directly work with CSOs but also efforts to strengthen their linkages with government. Working together with sectoral groupings, civil society, Government and donors should identify common targets, the strengths of civil society, and build a consensus on priority working areas. Donors should work more together on civil society capacity building programmes and on making funding for local organisations more transparent.

    69. There are a number of issues with donors and civil society as well. For example, some argue that CSOs are often donor-driven. Agreements to support CSOs are often block agreements, making it difficult for the Government to keep track and co-ordinate efforts. The improvement of HMGN systems and capacity to gather information, monitor and co-ordinate efforts is therefore a pre-requisite to improving Government-civil society collaboration. HMGN therefore encourages donor efforts and support to build HMGN's capacity and systems in this regard. Direct donor support to civil society should:
  • be transparent about their interests and support
  • limit themselves to non-partisan development organisations
  • select civil society partners based on a transparent and competitive process

    70. Donors must ensure their involvement is supportive rather than directive. Donors should play a supportive role (as facilitators) and can play a role in sharing international experiences and best practice.

    71. HMGN is encouraged by the consultative process leading up to the NDF 2000 (consulting openly with civil society and seeking their feedback). We encourage the donor community to continue this process in the years to come. Here are just a few suggestions to facilitate this consultative process:
  • Donor schedules need to take into account the time necessary to seek input, hold additional meetings and integrate feedback into final documents.
  • Civil society should be involved even more in the future, and should be kept informed of the impact of their contributions on policy to ensure their continued participation in aid co-ordination the process.
  • Discussion papers should be written in simple language.
  • Donors and Government alike should keep in contact with key federation representatives throughout the year.

    3.2 Support Efforts to Strengthen Civil Society-HMG Links

    72. Whenever feasible, to be effective and strengthen the links between government and civil society, donor-supported programmes should be designed to enhance links with government and promote collaboration in the planning and implementation of projects to meet common objectives.

    73. This could involve any variety of interventions, ranging from human rights training to law enforcers to training to district forestry officers about the rights of forest user groups and technical aspects of forest products. We can see concrete examples of this type of effort in the work of numerous projects in the kingdom, including those that are working with government ministries to share findings of their work and studies and to help local government to develop plans to promote community-based efforts. Many different projects are supporting government and civil society to strengthen community-based CSOs and improve the ability of CSOs and the government to work together. In particular, HMGN asks donors to contribute to the development of information systems to increase coordination and transparency. Information systems could include a database; joint Social Welfare Council/Ministry of Finance/Donor reporting; and impact assessments.

    Conclusion and Recommendations for Follow-Up

    74. HMG envisages and encourages the greater involvement of civil society as partners and as stakeholders in development and poverty alleviation. HMG is ultimately accountable for supervision and monitoring development activities; at the same time, civil society must be accountable for their activities. Ideally, civil society should set its own stringent standards for conduct, financial management, governance, commitment and transparency. HMGN would like to promote a competitive atmosphere among CSOs and is supportive of initiatives from civil society to implement standards to ensure quality, especially through positive support to civil society's efforts towards self-regulation and standards.

    75. This consultative process leading up the NDF has enabled HMGN to obtain constructive suggestions and feedback from civil society and donors. Feedback thus obtained has lead to specific recommendations for changes that will create an enabling environment for the increased involvement of civil society in development and poverty alleviation. These include:

    (i) the development of information systems to increase coordination and transparency. Information systems could include a database; joint Social Welfare Council/Ministry of Finance/Donor reporting; and impact assessments.

    (ii) the simplification and rationalization of registration and reporting systems. At present, thirty-five to forty steps are required to conclude an agreement. HMG expressed its commitment to setting up a one-window system to simplify procedures.

    (iii) joint review and redrafting, by the Government and CSOs, of relevant laws and regulations. In particular, the Societies Act is outdated, and encompasses a wide variety of very different organisations. The rules surrounding NGOs' constitutions, in particular, should be revised to ensure that NGOs develop their own constitutions within set guidelines.

    (iv) drafting and active implementation, by CSOs, of their own codes of ethics and standards based upon internationally accepted norms;

    (v) working together with sectoral groupings, civil society, Government and donors should identify common targets, the strengths of civil society, and build a consensus on priority working areas.

    76. Finally, HMGN would like to encourage the type of consultative process leading up to the NDF (consulting openly with civil society and seeking their feedback). We encourage the donor community to continue this process in the years to come.

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    Bibliography

    Please find below a short list of key resources available on civil society.

    Canadian Council for International Co-Operation (CCIC). Code Of Ethics http://fly.web.net/ccic/volsector.htm

    CLAYTON, Andrew, (ed.), NGOs, civil society and the State: Building Democracy in transitional Societies, Intrac, Oxford, 1996, p. 7-11

    FOWLER, Alan, "Strengthening Civil Society in Transition Economies - from Concept to Strategy: Mapping an Exit in a Maze of Mirrors" in NGOs, civil society and the State: Building Democracy in transitional Societies, Intrac, Oxford, 1996, p.12-35

    HARPER, Caroline, "Strengthening Civil Society in Transitional East Asia" in NGOs, civil society and the State: Building Democracy in transitional Societies, Intrac, Oxford, 1996, p.125-140

    HMG/N, National Planning Commission, The Ninth Plan (1997-2002), 1998

    International Co-operative Information Centre. International Co-operative Principles http://www.wisc.edu/uwcc/icic/orgs/ica/pubs/

    JORGENSEN, Lars, "What are NGOs Doing in Civil Society" in NGOs, civil society and the State: Building Democracy in transitional Societies, INTRAC, Oxford, 1996, p.36-55

    MASKAY, Bishwa Keshar, Development Governance: Agenda for Action. Centre for Development and Governance. Kathmandu, 2000.

    NEPALI, Rohit Kumar, Civil Society Organisations of Nepal: Identity in Danger. SAP Nepal (unpublished, no date given).

    NEPALI, Rohit Kumar, Civil Society: Voice to the Powerless People. South Asia Partnership Nepal, Kathmandu, 1997.
    NGO Federation of Nepal NGO Code of Conduct (1995)
    RENSHAW, Laura R., "Strengthening Civil Society: the role of NGOs" in Journal of SID, Society for International Development, 1994, p.40-50


    ROBINSON, Mark, "The Role of Aids Donors in Strengthening Civil Society" in NGOs, civil society and the State: Building Democracy in transitional Societies, INTRAC, Oxford, 1996, p.204-218

    SOUTH ASIA PARTNERHSIP, (a collection of articles from the Annual Forum of South Asia Partnership Canada), Ottawa, 1997.

    STRESTHA, Ananda, The Role of Civil Society and Democratisation in Nepal. NEFAS, FES, 1998.

    TATSURO Kunugi and Martha Schweitz (eds.), Codes of Conduct for Partnership in Governance: Text and Commentaries (provisional version presented to the World Civil Society Conference: Building Global Governance Partnerships, 7-11 December 1999, Montreal). United Nations University.

    TIMILSINA, P.P., "Civil Society Organisations: Their Dilemmas and Perspectives," in Social Development and INGOs Activities in Nepal, 1997.

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