• WHY?: IR emerged 2 powerful insti: State + Market
    • exploited citizen
  • ppl come together voluntarily to protect interest => CSO

History of CSO

  • emerge in europe, 20th century
    • ppl of germany voluntarily protested against wars, resulting in CSO
  • In india, during freedom movement, many socio religious reforms -> CSO

What is CSO?

  • org formed when >2 ppl come together voluntarily to protect interests, promote welfare from exploitation by state or any insti

Features

  • entry/exit completely voluntary
  • neither state or market
  • eg. NGO, Pressure Groups, Voluntary Assocs, Caste based orgs, SHG, Religious orgs

Role

  • provide inputs to govt in public policy formulation
    • MKSS -> formulation of RTI
    • Lok Satta NGO -> electoral reforms
    • Parivartan -> service delivery reforms
    • Association for Democratic Reforms -> fighting for accountability within democratic structures eg PIL for electoral bonds
    • Jagruti -> reservation for Women
    • Aruna Rai Foundation -> social audit of NREGA
  • help govt in implementing public policies
    • eg. Akshay Patra Foundation -> Mid Day Meal Scheme
      • run by ISKCON
    • PM JAY implemented via NGO
  • impartial review of govt schemes
    • ASER (all india school edu report) by Pratham
  • social audit
  • create awareness among ppl about rights
    • to fix accountability
    • eg. Human Rights orgs for tribals, women, children, daily wage workers prevent exploitation
  • transform representative democracy into participative democracy

Cooperatives

  • Cooperative Credit Societies Act 1904
  • 97th CAA 2011
    • FR Art 19(1)(c)
    • DPSP Art 43B to promote coop
    • Part IXB: Art 243ZH - ZT for coop governance
  • voluntary gorup of individuals w/ common needs uniting to achieve shared eco goals
  • types
    • consumer
      • kendriya bhandar
    • producer
    • credit societies
    • farming soc
    • housing coop
    • marketing coop
      • Amul
  • Multi-State Co-operative Societies (Amendment) Act, 2023 for governance

Cooperative Bank bank

  • RBI regulation
  • 1400 urban coop banks
    • 50% clustered in Guj, Maha

Significance of Coops

  • social cohesion
  • empowering society
    • bargaining power
    • leadership
  • financial inclusion
  • reduce wealth inequality

Challenges faced by Coops

  • Governance
    • politicization
    • lack of awareness
    • internal rivalries
  • limited reach
    • regional imbalance
    • small societies
    • single purpose
  • operational challenge
    • lack of coordination
    • weak audit system
  • functional weakness
    • lack of scale
    • lack of skilled workforce
    • poor mgmt
    • no digitalization

Pressure groups

  • grp of ppl w/ similar interest to influence public policies by putting pressure on govt
  • eg. farmer assoc, trade groups
  • PLI for domestic production
  • Atma Nirbhar Bharat Abhiyan
  • capital gains tax reduce

Pressure Groups

Criticism of NGO

  • working against nat interest
    • Naxalism
    • foreign funds, finance agitations
    • eg. 2010 TN, NGO get funds from scandinavian countries to finance
  • agitate against major infra project eg Narmada Bachao Andolan by Medha Patkar has influenced multi lateral institution like IMF+WB to not fund project
  • policy paralysis
  • Kalpakkam power plant, fishermen fear
    • funding from scandinavian countries
  • eco survey: 8 L Cr of PPP stuck due to NGO activism
  • foreign fund to finance terror activity eg. Zakir Naik Foundation
    • Kashmir: terrorism via foreign funds
  • MHA: foreign funds to finance religious conversion
  • No transparency in NGO
  • NGO using blackmailing tactics
    • eg fast unto death

Steps taken by government

  • amended FCRA to prevent foreign fund misuse
    • FF receiving NGO should register w/ MHA
    • MHA absolute discretionary pwr to grant licence
    • receiving acct only SBI, New Delhi branch
    • fund be spent only for intended purpose
    • cant be diverted for other puprose
      • else criminal case
    • no further donation
    • the particular activity should be spent on in last 2 yr atleast 20L
    • reduced administrative expense limit to 20% of NGO
    • licences cancelled of >20K NGO
  • Govt stipulated NGO must not involve in pol. activity
  • NGO are spending time, energy, resources only on seeking donation from intl. aid egencies
  • also from govt to implement flagship schemes
  • losing credibility among stakeholders

What needs to be done

  • NGO must work on bldg trust, credibility at ground level
  • work with service motive, not donation
  • work credibility funds
  • become financially independent
    • don’t depend on govt
    • reduces functional independence
  • expected to review developmental & welfare schemes
  • reccs of 2nd ARC
    • institutionalize relationship b/w voluntary sector + govt
    • consultation w/ NGO be made mandatory
    • active involvement of NGO in policy implementation
    • at present, major flagship schemes implemented w/ NGO
    • eg. Sarva Shiksha Abhiyan, Mid day meal, PM JAY
  • social audit be made mandatory for all welfare schemes