India's bilateral aid policy and voluntary sector policy
India is soon to publish a Bilateral Aid Policy and a Voluntary Sector Policy. Voluntary Action India (VANI) has been working to strengthen these policies. The articles below give more detail.
1. NGOs demand change in India's bilateral aid policy
New Delhi: An apex body of NGOs today complained that the Centre's "discouraging" bilateral aid policy was delaying development work by voluntary bodies in India and asked the government to "rework" existing rules.
The current bilateral aid policy makes it mandatory for foreign donors to seek approval from Department of Economic Affairs in the Finance ministry for projects they plan to fund through NGOs, the Voluntary Action Network India (VANI) said.
"The additional layers of scrutiny introduced by the DEA is unwarranted and leads to procedural delays in project implementation and even corruption," VANI chairperson Rajesh Tandon said.
The policy, introduced in 2003 and modified the following year, is also causing a decline in bilateral aid for India, he said at a consultative meet here.
According to Tandon, the policy does little to encourage aid provision from smaller bilateral agencies as opposed to the G-8 nations and the European Union.
Admitting that some procedural delays still remain, DEA Deputy Secretary Naga Raju, however, said that projects for NGOs registered under the Foreign Contribution Regulation Act were cleared in an average period of 45 days.
"But we need to know from where the money is coming and for what purpose. In fact, the aid policy has brought in discipline among bilateral agencies," Raju said.
Planning Commission advisor Manjulika Gautam said the government needs to provide NGOs with an enabling environment while keeping the country's interests in mind.
A VANI spokesman said a Parliamentary Standing Committee had been set up on the bilateral aid issue and positive developments were expected soon.
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2. National policy on voluntary sector soon
NEW DELHI: The first-ever national policy on the voluntary sector is ready to be put before the cabinet for approval. Finalised by the Planning Commission with the help of experts and NGOs, the draft aims at creating an enabling environment for voluntary organisations and facilitating their partnership with the government.
Till now, the voluntary sector was governed by different sets of rules. Different ministries and states had their own guidelines.
Syeda Hamid, member, Planning Commission, says, "Currently, there is a lot of adhocism. So there is an urgent need to identify systems by which the government could work with these organisations based on mutual trust and respect and with shared responsibility.
The government wants to encourage the voluntary sector to come forward as there's wide scope for collaboration between states and NGOs in many areas. We expect all states to follow suit once the policy is executed."
The policy, she says, will encourage the voluntary sector to improve governance, accountability and transparency. "There are always complaints of misutilisation and lack of accountability in using funds, lack of cooperation and constraints in mobilising resources."
The Planning Commission took the initiative in drafting the policy in February 2005. It was a lengthy process arrived at after much dialogue. While there are about six lakh registered voluntary organisations, there are an equal number of unregistered ones. These survive on local charity.
Once the policy is formulated, they will be encouraged to come forward and register themselves. Pooran Chandra Pandey, chief executive, Voluntary Action Network India, says, "A policy will help growing need for collaboration between various agencies and the government."
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3. NGOs for change in bilateral aid policy
The Hindu 12 July 2006
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