David Hulme

Too close for comfort? the impact of official aid on nongovernmental organizations

Abstract In promoting a “New Policy Agenda,” bilateral and multilateral donor agencies are keen to finance nongovernmental organisations (NGOs) and grassroots organizations (GROs) on the grounds of their economic efficiency and contribution to “good governance.” This paper reviews the impact of this trend on NGO/GRO programming, performance, legitimacy and accountability. If finds that much of the case for emphasizing the role of NGOs/GROs rests on ideological grounds rather than empirical verification. In addition, though the evidence is inconclusive, there are signs that greater dependence on official funding may compromise NGO/GRO performance in key areas, distort accountability, and weaken legitimacy.

Conceptualizing Chronic Poverty

Abstract This paper provides a meaning for the term chronic poverty “in a nutshell” and explores the concepts of poverty, vulnerability and poverty dynamics that underpin this meaning. Subsequently, it reviews “who” is chronically poor, “why” they stay poor and what is known about policies to reduce chronic poverty. Despite the limited knowledge available it is clear that hundreds of millions of people are chronically poor, the causes are multifarious but can be analyzed through livelihoods frameworks and that the scale and nature of chronic poverty will require an increase in the levels of financing allocated to social protection in developing countries. Recent conceptual and methodological advances, and the increasing availability of panel datasets, mean that the analysis of deprivation can move on from poverty trends to poverty dynamics.

Impact assessment methodologies for microfinance: theory, experience and better practice

Abstract Microfinance programs and institutions are increasingly important in development strategies but knowledge about their impacts is partial and contested. This paper reviews the methodological options for the impact assessment (IA) of microfinance. Following a discussion of the varying objectives of IA it examines the choice of conceptual frameworks and presents three paradigms of impact assessment: the scientific method, the humanities tradition and participatory learning and action (PLA). Key issues and lessons in the practice of microfinance IAs are then explored and it is argued that the central issue in IA design is how to combine different methodological approaches so that a “fit” is achieved between IA objectives, program context and the constraints of IA costs, human resources and timing. The conclusion argues for a greater focus on internal impact monitoring by microfinance institutions.

Non-Governmental Organisations - Performance and Accountability : Beyond the Magic Bullet

The last decade has seen some significant changes in international development and in the status of non-governmental organisations operating in the field. Not only has the number of NGOs virtually doubled; many of them have seen a considerable growth in their budgets, and have grown closer to governments and official aid agencies. NGOs are acknowledged by many to be more effective agents of development than governments or commercial interests ? even as a ?magic bullet? for development problems. Despite these positive trends, the real impact of the NGO sector is not well documented. This is partly because NGO performance-assessment and accountability methods are weak, and partly because NGOs are caught up increasingly in the world of official aid, which pushes them towards certain forms of evaluation at the expense of others. This unique book takes a hard and critical look at these issues, and describes how NGOs can, and must, improve the way they measure and account for their performance if they are to be truly effective.

Programs for the Poorest: Learning from the IGVGD Program in Bangladesh

Abstract This article examines a program that seeks to reach Bangladesh’s “hardcore poor” by combining elements of livelihood protection (food aid) with livelihood promotion (skills training and microfinance). Bangladesh Rural Advancement Committee’s Income Generation for Vulnerable Group Development Program has deepened the outreach of its poverty-reduction activity and achieved impressive results. Detailed local-level fieldwork revealed, however, that program practice differed markedly from program plans. This is found to have important implications for both future program design and the understanding of “who” does not benefit from such innovative programs. We conclude that while such programs, mixing livelihood protection and promotion, should be a major focus for anti-poverty strategies there will remain a role for more traditional social welfare schemes.

Is microdebt good for poor people? A note on the dark side of microfinance

This note focuses on the ‘downside’ of microfinance: on the way in which some microfinance activities can damage the prospects of poor people. It is not a polemic that argues that microfinance has failed—there is much evidence, not least from my work with colleagues, that it can help many poor people improve their lives. Rather, it is a reminder that those who provide microfinancial services (referred to here as MFIs, or microfinance institutions, but recognizing that many institutions also provide enterprise development or social development services) need to monitor carefully not only their positive impacts but also their negative effects, look to the future, and not rest on their laurels. The ‘microfinance industry’ needs to practice more humility about what it has achieved (outside of Bangladesh it has not even scratched the surface of poverty, for example in Kenya less than 70 000 people out of an estimated 9 to 10 million poor people have access to microfinance) and deepen its understanding of the financial service needs of poor people (see Rutherford in this issue).

NGOs in a global future: marrying local delivery to worldwide leverage

This article argues that global trends are creating unprecedented opportunities for civic action at local, national and international levels. Three interconnected trends are identified: economic and cultural globalization, and the inequality and insecurity they breed; the increasing complexity of humanitarian action in response to ethnic conflict and intrastate violence; and the reform of international co-operation to deal with the problems these trends create. In response, new forms of solidarity are emerging between citizens and authorities at different levels of the world system. It is these new relationships—expressed through partnerships, alliances and other forms of co-operation—that provide the framework for NGO interventions, but they also require major changes in NGOs themselves. Chief among these changes are a move from ‘development-as-delivery’ to ‘development-as-leverage’; new relationships with corporations, elements of states, the military, international institutions and other groups in civil society; and new skills and capacities to mediate these linkages. These developments call for major changes in NGO roles, relationships, capacities and accountabilities. Copyright

Social Protection for the Poor and Poorest in Developing Countries: Reflections on a Quiet Revolution

The theory and practice of social protection in developing countries has advanced at a rapid pace over the last decade or so. There is a growing consensus around the view that social protection constitutes an effective response to poverty and vulnerability in developing countries, and an essential component of economic and social development strategies. This paper argues that the rise of social protection constitutes a response to global trends, but with considerable regional diversity. It examines the factors determining the future course of social protection and identifies urgent research needs.

Social Capital and the Political Economy of Violence: A Case Study of Sri Lanka

This article examines the links between militarised violence and social capital (trans)formation. It first maps out emerging theoretical and policy debates on social capital and violent conflict and questions a number of the assumptions underpinning these debates. This is followed by an empirical analysis of several war-affected communities in Sri Lanka. The case studies illustrate that the links between militarised violence and social capital are complex, dynamic and context specific. It is argued that social capital cannot be understood in isolation from political and economic processes, and the belief that violent conflict inevitably erodes social capital is questioned. Finally, the implications for external agencies are highlighted. Rather than focusing on engineering social capital, external agencies need to focus on understanding better the preconditions for social capital formation and how they can contribute to the creation of an enabling environment. This requires as a starting-point a rigorous analysis of political and economic processes.

Process Approaches to Development: Theory and Sri Lankan Practice

Abstract Calls for “process projects” in the 1980s led to the development of a body of knowledge about process approaches and the implementation of innovative programs and projects. During the 1990s the focus has moved on to the narrower subject of beneficiary participation and much potential learning about how to promote development is being lost. This paper reviews the notion of process approaches and produces a conceptual framework that synthesizes these ideas. It then uses this framework to analyze 12 years of experience of a NORAD-financed IRDP in Sri Lanka. The findings point to the continued relevance of deepening the theory and practice of process approaches in development.