Monday, October 16, 2006
Thursday, May 18, 2006
Civil Society in Peril: The Burmese Case
Phyo Win Latt
The General Concept and Theory of Civil Society
The term "Civil Society" is believed to be used for the fires time by Seventeenth-century English philosopher Thomas Hobbes, in his treatise Leviathan. Its connotative vicissitudes, its origins and previous political uses from Hegel and Marx and beyond in a sense reflect a microcosm both of political and social science theory. For a period reflection on civil society was out of style, an anachronistic concept replaced by more fashionable intellectual formulations. Collins Dictionary of Sociology defines civil society in Marxian and Hegelian sense, as "a realm intermediate between the family and the state". As the modern world odder change the definition and domain of civil society also expends. The changing role of global civil society has redefined the concepts of democracy. After the collapse of communism in the late 80s, the civil society of formerly communist controlled regions needed to rebuild, since it was disproved under the regimes. Political democracy has taken root around the world to a formidable extent. As Robert Putnam in his book Making Democracy Work: Civic Traditions in Modern Italy said "civil society consists of the diverse autonomous interest groups that can exert pressure on the state. The creation of a civil society is critical for the effective performance of democracy." Not only are civil societies rising up in previously repressed areas, there is also a culture of global civil society with an explosion in the number and forms of activities of NGOs and other groups focus on issues like human rights and good governance. Such a turn of trend could only be seen as impossible a few years ago. Now the term civil society came to be realized as a reference to sources of resistance to and the domain of social life and livelihood, which needs to be protected against globalization era.
Civil society is a contested concept supported both by the Right and the Left. For the Right a civil society supports neoliberalism doctrine, which shifts state responsibility onto organs of civil society and rejects the notion of universal citizenship entitlement. Within a Rightist position, the middle class has also, at times, appropriated civil society to further the agendas of middle class elitism. The Left too supports, a lively and active civil society based on emancipatory, democratic ideals, which actively engages in formulating and developing policies rooted in the principles of social justice and of human rights. Organs of civil society in this regards act as watchdogs for the poor and marginalized by regulating the forces of the state and the market; a civil society that, in the view of Howell and Pearce express a critical approach to the global economy’. It is the latter view of civil society that is reflected in the global standards.
According to Robert W. Cox, the bottom-up movement in civil society becomes the counter weight to the hegemonic and autocratic type of governance. The balancing between top-down approach and bottom-up approach in civil society and it's tendency to sway towards right-wing populism and covert world result in distinct types of state/society configurations with different implications for civil society. The modern civil society is not just a collection of groups, but especially in democratic societies, it is an organised system of social actors, that often have a transactional dimension in their activities and it expanded the governance agenda in both local level and multi level. Such changing trend with the decline of the power of institutional governance and rise of civil society makes the norms of democracy reconsidered. Self organized local associations like parent-teacher associations watch dogs, and advocacy groups are more tend to demand and receive accountability than disorganized individuals. According to Fukuyama' "civil society can degenerate into rent-seeking interest groups whose goal is not greater accountability but an increase in the scope of government subsidies or the substitution of government for civil society. Which of these outcomes prevails depends less on institutional design than on the nature of civil society itself."
NGOs and other civil society actors attempt to influence the policies and practices of consumers, companies, states, and international institutions in the process of advocacy, for the sake of their beneficiaries. NGO advocacy is based upon policy analysis, research, and the channeling of information. Since the advocacy has effects on macro level policy making process it is effective than down top approach. Nowadays NGOs have become more and more involved in transnational advocacy networks that link a range of actors from different countries and communities, in order to achieve their developmental aims. As NGOs have gained a higher profile through their involvement in transnational advocacy networks, they increasingly face challenges about their roles in the international policy process and their rights to participate in the shaping of global governance. That legitimacy means a socially constructed quality to NGO's by states. And the states hold sovereign based legitimacy and legitimacy is connected with sovereignty and states' sovereignty may be undermined by the practice of NGO, so it is difficult for them to be regarded as legitimate. Moreover, in some countries which believe the social welfare, public health, and development programs are only the responsibility of governments. And this concept makes no place for the NGOs to become legitimate contributors to development.
A Backlash Against the Civil Society
Autocratic regimes been seeing the civil society as a specter to their political power for so long. But now they have decided to fight back. Earlier this year, in January, Russian President Vladimir Putin signed into law a controversial new bill imposing heightened controls on local and NGOs operating in the country. The new legislation, which requires all NGOs in Russia to inform the government in advance about every project they intend to conduct, is another marker of the country's dispiriting slide back toward authoritarianism. The law is also a sign of an equally disturbing and much broader trend. After two decades of the steady expansion of democracy-building programs around the world, a growing number of governments are starting to crack down on such activities within their borders. These strongmen, some of them elected officials, have begun to publicly denounce Western democracy assistance as illegitimate political meddling. They have started expelling or harassing Western NGOs and prohibiting local groups from taking foreign funds, or have started punishing them for doing so. This mounting counterattack has yet to combine into a formal or organized movement. But its advocates are clearly learning from and feeding off of one another.
The recent color revolutions in Georgia, Ukraine, and Kyrgyzstan and the widespread doubt that U.S. groups such as the National Democratic Institute (NDI), the International Republican Institute (IRI), Freedom House, and the Open Society Institute played a key behind-the-scenes role in fomenting these upheavals have clearly helped trigger the backlash. Politicians from China to Zimbabwe have publicly cited concerns about such events spreading to their own shores as justification for new restrictions on Western aid to NGOs and opposition groups. Yet there is something broader at work than just a fear of orange revolution (Ukraine's revolution came to be known as the Orange Revolution). The way that US President George W. Bush is making democracy promotion a central theme of his foreign policy has clearly contributed to the unease such efforts (and the idea of democracy promotion itself) are creating around the world. Some autocratic governments have won substantial public sympathy by arguing that opposition to Western democracy promotion is resistance not to democracy itself, but to American interventionism. Moreover, the damage that the Bush administration has done to the global image of the United States as a symbol of democracy and human rights by repeatedly violating the rule of law at home and abroad has further weakened the legitimacy of the democracy-promotion cause.
The Situation of Civil Society in Myanmar
Background
In Myanmar, the struggles for independence created the rudiments of civil society in the form of the various organizations that challenged the colonial rulers. When the British invaded and established a colonial administration, they imposed and enforced many restrictions for the purpose of political and military control. Although controlling the population and limiting freedoms had been not more than a regular practice during the Burmese monarchy, the British were more effective in institutionalizing control and limitations of public freedoms. These restrictions i.e. limiting freedom of association, speech, movement and other rights hindered the growth of civil society actors.
But this restriction didn't last longer as educated urban Burmese growing up during the colonial administration were exposed to the practices of forming modern organizations and became more familiar with these practices; they showed a desire to create their own organizations for their own purposes, sometimes as a direct challenge to colonial control. For example, during the early part of the colonial administration, in 1906, the first modern, Buddhist NGO was formed – the Young Men’s Buddhist Association (YMBA). It began as a student group focusing mostly on religious topics, but later switched to emphasize political issues. They successfully led a campaign to ban footwear in all pagoda premises, using the opportunity to try to form an anti-colonial political movement. The origins of modern civil society were partially rooted in colonial resistance. After independence, civil society organizations began to multiply in urban areas. Many trade unions, professional associations and groups with a range of objectives were formed in the 1950s. NGOs and CBOs were apparently forming at a faster rate than at any other time in the country’s history. We can see civil society did develop under democratic Burma. It seems to have been basically an urban phenomenon, except for the religious groups that continued in the villages but were also prevalent in the cities, many of which were socially extended, agglutinated villages. Pro¬fes¬sio¬nal and other organizations were formed and flourished in an era where considerable space did exist between the state and the society. That space was somewhat circumscribed because of three factors: the heritage of laws from the colonial period that were used to suppress political dissent and the independence movement, the insurgencies that prompted immediate concerns for state security, and a tradition in which state intervention was tolerated. Social space did, however, exist. There were, of course, close, interpenetrating links between the civil society groups and the government. This was to be expected, because with a relatively small elite group and an extended family system, the relationships between the private and public spheres were often close. In politics as well, there were in the past close familial ties between members of the insurgencies and the government at the highest levels. In addition to the formation of civil society, however, the government and the political opposition parties as well mobilized the public through the generation of mass organizations linked to the political process.
The Changing Trend
After the coup of General Ne Win in 1962, civil society was significantly changed. The military regime subsequently imposed restrictions on many individual freedoms, and civil society organizations found themselves threatened. Local NGOs and CBOs retreated into a shell for several decades in order to survive. Some forms of civil society, such as labor unions and people’s movements, were virtually wiped out. However, as this research illustrates, civil society survived and new organizations were forming continuously during this period, albeit at a much slower rate than before or after. And they adapted the way they function to the situation they faced. During the SLORC/SPDC era, the government loosened some of the central controls on the economy and made attempts to encourage or tolerate foreign investment and foreign organizations to enter the country. A few international NGOs trickled into Myanmar in the early 1990s, and a larger flow entered in the late 1990s and first few years after 2000. Also, some of the severe restrictions on society appeared to soften somewhat, participatory forms of community organization appeared to be more tolerated, and local and international NGOs were allowed to work at community level. In fact, many development workers have commented on the obviously higher level of government tolerance at community level in Myanmar than in some other countries in Asia and elsewhere. During this honeymoon period, NGOs were also allowed increased access to sensitive border areas and to parts of the country where they could not previously work. The numerous ceasefire agreements signed between the SPDC and armed ethnic groups during the 1990s also contributed to increasing access for NGOs around the country. But after 1996 unsuccessful student uprising, the iron grip of SLORC started to tighten its restrictions on NGOs and civil society.
In September 15, 1993, SLORC sponsored to form an organization called the Union Solidarity and Development Association (USDA). Just about two weeks after the announcement to hold a national convention to write a new constitution, and is likely to be related, with the USDA as a natural and national means to disseminate support for that new law when it is finally announced. The USDA is registered with the Ministry of Home Affairs, and is not a political party. It's explicitly mandated role is to support the activities and policies of the military, and the Chairman of the SLORC is the patron. It receives both direct and indirect support from the government at various levels, although it engages in businesses to provide funds for its activities. It is not simply an 'apolitical' political organization, however. It supports the state but has significant community development and educational components to attract membership. It tends to concentrate on youth, and is reported to have over 22 million members so far. The opposition claims that the USDA has been mobilized to protest the National League for Democracy's activities, and Aung San Suu Kyi personally and there is no question that the activities attributed to it in the SLORC controlled press which are to support state policies directly. That the SLORC in October-November 1997 prevented Aung San Suu Kyi from personally visiting local brunches of the NLD to expand its youth activities may indicate that the SLORC is fearful of youth both as a potentially mobilized disruptive political force and that they wanted no competition with the youth activities of the USDA.
This is the way SLORC has created its own civil society in the guise of the USDA. The SLORC would, and has, strongly disagreed with charges that membership is forced, but other say that there are informal, non-punitive but socially desirable incentives for joining. The potential for the USDA lies in its support for any of the SLORC policies or actions, including potentially the approval of a new constitution at some unspecified date, and the elections for a legislature that will be required. The SLORC in this case, as in many others, seems to be following the Suharto's model of Indonesia, which has allowed the military to run the country for over thirty years. There are some private groups in Myanmar, but most of the major ones are state sponsored and controlled, such as the Maternal and Child Welfare Association, are under government influence, as the ousted General Khin Nyunt's wife had been appointed as the head of that organization. Other groups are languished by the state and are clearly not independent and are at this stage no forces for pluralism.
For NGOs the SLORC directly and indirectly pronounces its position via its media. These international NGOs or local NGOs which run by international donation are seen by the SLORC as axe-handles or willing minions and they are used by rich countries as a tool to interfere and disrupt the internal affairs of host countries. And the junta also assumes that these NGOs are getting money from their donors by doing some show off projects in Myanmar, so they are regarded as exploiting their country by this means.
Recent Situation
The situation now are becoming tighter and tighter as the regime continues to impose many restrictions on the mobility of the civil society. Recently the regime's Ministry of Planning and Economic Development released the first formal set of guidelines for humanitarian operations in Myanmar on February 7, during a meeting with UN and INGOs in Yangon. The restrictions listed in these guidelines would heavily affect international aid operations. The documents said these organizations would be forced to choose Burmese staff from military-prepared lists, operations would be overseen by a special committees made up of civil groups including USDA and Women's Affairs association and all international field workers would have to be accompanied by a government official during in-country visits or inspections. A high-level NGO staff in interview with Mizzima News said, "The restrictions if imposed as they stand will have serious repercussions on our activities. Greatly reducing them as we would have difficulty operating within the parameters of the humanitarian principles to which we must all comply. Donors would be more hesitant to support operations in [Burma],"
Any Solution?
It is still a hot debate on how to save the perilous situation of civil society inside Myanmar. There are some who want to wait until the regime collapse to rebuild the civil society and there are some who want to do humanitarian assistance programs to save the situation. For Paulo Sérgio Pinheiro, who is the special rapporteur of the situation of human rights in Myanmar, wrote in his report submitted to secretary general of the United Nations on 7 February 2006, concerning his latest findings and suggestions, he said that" it would be counterproductive to wait until the end of the political transition process to empower civil society. As in many similar humanitarian emergencies in nations undergoing political transition processes to democracy, the main challenge for the international community is to prevent social capital from being completely exhausted. As well as addressing the suffering of the people today, it is necessary to protect and strengthen the ability of communities and individuals to participate in the eventual political transition."
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Why Development is So Difficult to Achieve: Limitations to Development
An essay response to question one of Development Theory and Practice
Phyo Win Latt
Trying to Understand the Development
Robert Chambers in his (IDS) Institute of Development Studies Working Paper called Ideas for Development: Reflecting Forwards tries to simplify the meaning of development as "good change". On the other hand, there are many different definitions of development by other academics and development theory experts. For some development is maximizing of human choice, for dictionaries entries on development it is a normative concept. Alan Thomas tried to extend the chamberian definition of good change by stating that it implies "increase living standards, improve health and well-being for all, and the achievement of whatever is regarded as a general good to the society at large". (Thomas, 2000) This essay will use the chamberian approach of definition for development to explore why that particular good change is so difficult to achieve.
What Should Be Included in Development?
Different interpretation of development itself is one of the main difficulties to achievement of it. If we do not have a clear goal how can we achieve what we aim. It is sure that growth only is not development although development may not be the ideal state for the welfare of human being. The UN Development Decade: Proposals for Action assumes that development is constituted with growth plus change.(Esteva, 2005) If we focus more on any form of growth including economic growth, we cannot achieve the real development.
Nobel Peace Prize laureate and pro democracy leader of Burma (Myanmar) Daw Aung San Suu Kyi differentiates between development and mere economic growth in her article published in Journal of Democracy in 1995. According to her as quoted by Lionnet, Nnaemeka, Perry, & Schenck, "the heart of the development process must be 'a sense of empowerment and inner fulfillment,' she rightly maintains, as people’s social and political transformation is 'the central issue of our time'. For Aung San Suu Kyi, development requires democracy, the genuine empowerment of the people, the very sort of participation advocated and recorded in this issue. When this is achieved, culture and economic development will naturally coalesce to create an environment in which all are valued, and every kind of human potential can be realized”(Lionnet, Nnaemeka, Perry, & Schenck, 2003)
In this sense, can we call burgeoning economic in East and South East Asia as a sign of development? Probably not. For example, look at China, which will officially declare itself as having third highest GDP in the world. Though having economic growth China has lack of democracy and still committing human right violations under communist regime. For Truman who used the term underdevelopment China can still be consider as underdeveloped in this sense.(Esteva, 2005)
A senior Canadian lady volunteering in Child Protection Center in Bangkok as CUSO cooperant makes a remark on the issue of child abuse in Thai society as a cultural development and concept of human right are left far behind economic and infrastructural growth of Thailand. It is supposed to be synchronizely improved as the economy and infrastructural assets grow. So we can conclude that development should covers growth and positive changes in society.
What Are the Underlying Factors That Make Development Hard to Achieve
There are many factors hindering development process. Such as having set the development goal far from the reality to the lack of enthusiasm and participation from the beneficiaries. One point we normally over look is the fact that development is not just what development agencies do. If it is so we will have already achieved some extent of development as the agencies promised. And other issues are whose development and to develop who. Compare with the practice of communism, we can see its change of focus from communism for the welfare of the people to make people protect, sometimes sacrifice for the sake of the endurance of communism. This situation can also be applied in development world. The situation may turn from development for the people sake to the people for development sake like in communism . So what ever done in the name of development may not be development.
1) Material Centered or Human Centered?
Cocoyoc Declaration, which was issued in 1974, has the clear statement on that matter. What the declaration emphasized was that the purpose of development "should not be to develop things, but to develop man. Any process of growth, it added, that does not lead to the fulfillment [of basic needs]-- or, even worse, disrupts them--is a travesty of the idea of development".(Esteva, 2005) That goes with the idea of Daw Aung San Suu Kyi who advocates for democracy as the genuine empowerment of the people to achieve development. Bjorn Hettne labeled material centered development as a growth manic in his book Development Theory and the Three Worlds: Towards an International Political Economy of Development.
2) Lack of Participation of the Beneficiaries and Lack of Mutual Understanding
Most of the development plan and strategies are drawn by the development agencies. That is the way they use to implement development is top down approach, which doesn't have the place for the participation of those who will benefit from the development plans. Because those planners and developers assume themselves, development experts and the plans will rightly fit into the need of the local people. However, in the reality those top down type of development plans fail. Just because they are not coming from the people. And this may also lessen the trust of the people on the projects and may cause misunderstanding between developers and local people. To give an example let's see the case of Population Service International (PSI) in Burma (Myanmar), a Washington based NGO working for public health services. As a part of HIV/AIDS campaign, the NGO has to advocates for the use of condom widely. Without having awareness of the extroverted nature of Burmese people, PSI used the direct method to promote the use of condom, which resulted in public dislike on PSI. A development plan may not be successful if it does not receive the participation from the beneficiaries and the people.
In chapter, five of his book Development Theory and the Three Worlds Hettne quoted alternative development thinking popularized by Dag Hammarskjöld report and Development Dialogue Journal published by Dag Hammarskjöld Foundation. It has five principles one of which is endogenous. Which means "stemming from the heart of each society, which defines in sovereignty its value and the vision of its future".(Hettne, 1995) According to Dag Hammarskjöld Foundation successful alternative development the society has to define its own future, how it wants to make it better. However, in reality such kind of development planning is too much far from the practical field.
3) Having No Will to Develop or Having Fatalistic Outlook
Will to power is the term widely used by Nietzsche. But for the development of the people, will to develop is much more important. If the people are very religious and believe that, any profit making and physical growth are against the religious teaching of temperance, self-denial, and austerity they may not have the will to develop. An example from Thailand may be useful to explain this case. In 1959 when Field Marshall Sarit Thanarat seize the state power by a soup d etat he formed a new ministry for national development to modernize the country. But the government saw the ideological teaching of Sangha (Monks) to know one's limit of wants and to contented, as a limit to economic development.
As Surichai Wangaeo stated in his paper Possibilities of Alternative Social Science Discourse in Thailand: A Lesson from Buddhist Praxis "The government worried that many monks, conscious ideological leaders, would instill in the people ideas inappropriate from the point of view of mobilizing the people to economic pursuits. It even instructed the Sangha to refrain from teaching negative or inappropriate Buddhist concepts for development, for example, Santosa, which means knowing one's limitations or be contented. The government then thought it would be working against its slogan Ngarn ku ngern, Ngern kun garn bandana suk (work is money, money is work, this creates happiness). For the government elites were aiming rather at creating 'more wants' and 'more desires' or demands for consumption, which were viewed as stimuli for further growth and production. Economic growth was the be-all and end-all."(Surichai Wangaeo) To prevent this Field Marshall Sarit Thanarat sent a notification latter dated April 18, 1960 to most of the senior monks across the country.
Another negative impact of being religious is having fatalistic believes on one's life. Some believers of Buddhism who believe Karma (good or bad deeds people did in the previous lives that has an effect on present life) have fatalistic point of view on their life. For them they are poor and underdeveloped because they did bad deeds in previous lives so they are deserved to suffer the poverty and other miseries and will not receive redemption. Therefore, they believe anyone tries to help them out of poverty and miseries will end up in vain. They assume themselves that they must suffer the poverty and miseries as a penance. Rural areas in some parts of Burma still hold this point of view. Some time they even question the development workers why they are trying to help them, the cursed people, which will not be successful. This mentality is disturbing development process by discouraging people to dropping their will and hope to develop.
4) Active or Passive Type of Development
It is clear that development is not the process totally done to the beneficiaries by developers and developing agencies. The beneficiaries themselves have to participate in the process. So that they can understand why they need to develop, how can they contributed in the developing process of the agencies, how can they sustain the development they have already achieved and will achieve after the development project initiative by the agencies. Since the nature of development, projects are time limited, after the project the people have to take care of the achievement and sustain it for the generations to come by themselves. That is why they have to be active participants of the development projects that are being done to their region. However that needs a lot of advocacy and persuasion process. They should be well aware of the consequences good and bad of course. Not 100% of the people would be benefit form a single development project. There will always be some people who would not satisfy with the results and improvements come out from the project. If we cannot go beyond this step, we will only have to say that development is difficult and roll back the action.
5) Conflict of Interests and Polarization of Interests
Some time development may bring benefits to some and problem to others. Because it involves changing the present situation. Whatever that changes will be there will be those benefits from the change and there will be those who lost their status quo due to that change. If people are not well informed and not well prepare to accept the change and live with this change it is better not to change. As Mohandas K. Gandhi said, "You must become the change you wish to see in the world." So that they can enjoy the change.
In 1995, Electronic Generating Authority of Thailand (EGAT) planned to build Pak Moon dam on Moon River in Ubon Rachatani Province. For the inhabitants of this area the dam will totally change their livelihood of fishing in the Moon River. While building the dam some villagers find themselves in better situations by working in the construction and related development projects when others have to leave their villages to continue their fishing business, which is their only way of livelihood. We can see the interests of the villagers became polarized on this particular project. Although the dam project is a development project, the changes required to implement this project were threatening the livelihoods of the people.
This project has another dimension. It was not intended for the people living near the dam area. The indented beneficiaries are the people living in metropolitan area. Moreover, the focus of the development is totally on those people living in cities, not the area around the dam project. For those cities dwellers the project was positive and have nothing to lose their present status, it may even ameliorate their living standard. Therefore, their interest concerning this project was totally opposite to the villagers who live by the river. These are the good examples of conflict of interest and polarization of the interest that a development project can brings.
6) Lacking the Notion of Responsible Well Being in Development World
Robert Chambers proposed the notion of 'responsible well-being' as he defines "concepts of well-being, and personal responsibility – can be combined as responsible well-being, a two-word concept to explore. The challenge is to see what this might mean for all people, in their relations with themselves, with others, and with the environment. Two basic principles on which there is wide agreement are equity and sustainability." For him " The objective of development is well-being for all. Well-being can be described as the experience of good quality of life. Well-being and its opposite, ill-being, differ from wealth and poverty." Patta Scott-Villiers also back up the notion in 2004 by stating that " . . . one cannot be responsible for others’ well-being without being responsible for one’s own, but neither can one be well on one’s own without taking some responsibility for the well-being of others." (Chambers, 2004)
Can we see any sense of the notion responsible notion in practical development world? Probably rare if not at all. May be Chambers is too optimistic but without having the sense of responsibility or having only little sense of responsibility it would be hard to achieve and sustain development in the long run.
Conclusion
I have tried to examine some aspects of development theories to identify which factors make development so difficult to achieve. And so far come up with six factors, which I think would be important. Since the nature of development is wide and diverse, some theory and practice are still far away. We have to go on theorize what we find and tried to apply this theory in practice. Otherwise, development will still be difficult task for us.
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Review on Three Chapters of Sharon M. Oster's Book Strategic Management for Nonprofit Organizations
Phyo Win Latt
Introduction
Indeed, the world has witnessed an influx of nonprofit organizations rising to prominence. Logically, these nonprofit organizations serve as the anti-thesis of companies that exist to rake the revenues that the market offers. The bandwagon has started years ago and has continued to flourish because of the apparent poverty and tendencies for financial incapacities. Although nonprofit organizations have been considered as low profiled, some have evolved with competence and reputability. The nature of nonprofit organizations suggests that flexibility and dynamism are inexistent. At present, however, nonprofit organizations have changed considerably and start to promote different perceptions and ideas.
For years, scholars have studied the manner in which nonprofit organizations are operated. Various books and journals have been published to facilitate the learning process and delivery of information among academes. Nonprofit organizations have emerged as an interesting topic among students exploring strategic management. The simplistic approaches in managing nonprofit organization have intrigued several individuals.
Sharon M. Oster, Frederic D. Wolfe Professor of Management and Entrepreneurship of Yale School of Management, is a specialist in competitive strategy, microeconomic theory, industrial organization, the economics of regulation and antitrust and nonprofit strategy. She has written extensively on the regulation of business and competitive strategy. Oster's book, Modern Competitive Analysis, used widely at management schools, integrates a broad range of views in its analysis of management strategy and emphasizes an economic approach to strategic planning. Her second book, Strategic Management for Nonprofit Organizations which was published as first edition from Oxford University Press in 1995, takes the same economic approach to managing nonprofit organizations. She has consulted widely to private, public, and nonprofit organizations including Microsoft and Boston Scientific. As a quality guide, her second book Strategic Management for Nonprofit Organization: Theory and Cases has become an after sought book. Readers have classified the book as extensively researched and comprehensive. In addition, the cases and discussions were helpful in revealing the essentialities of nonprofit organizations.
The following pages will tackle three important facets of nonprofit organizations. These discussions will include the mission of nonprofit organizations, the human resources management, and the overall managerial control.
Chapter 2: The Mission of the Non Profit Organization
In this chapter, the author starts with the information on the importance of nonprofit organizations. Accordingly nonprofit organizations primarily exist to provide services that are usually available from other avenues. The main difference of nonprofit organizations is that the cost of the services rendered or goods sold are cheaper than the products offered in the market. Others mistakenly interpret the role of nonprofit organizations as price stabilizes. Although competition is a given circumstance, nonprofit organizations remain truthful to their missions. Primarily, catering the needs of the unfortunate and the financially incapacitated are utmost priorities.
Also, the chapter discusses the essence of nonprofit organizations mission statement and its effect to the entire operations. For one, the mission statement serves as the embodiment of the institutions and becomes the imminent determinant of nonprofit organizations’ purposes. The mission statement communicates with the public and defines the delivery of services provided and the quality of goods produced by nonprofit organizations. Overall, the mission statement summarizes the whole nonprofit organization from the method of operations to the intangible aspects that govern within the institutions.
In addition, the chapter mentioned the methods of formulating the mission statement. Usually, the founders of the institutions take the lead in such endeavor. The mission statement consists of the general objectives and the specific manifestations of nonprofit organizations. The mission statement is guided by the attributes of the organizations. It is expected that facets that comprise organizations are included in the formulation and the inception of the mission statement.
In our region, Southeast Asia, the existence of nonprofit organizations is highly needed. Although the region is well off that other parts in the world, Southeast Asia has experience tremendous adversities. Specifically, the financial crisis that hit the region has left several companies bankrupt and others in the midst of corporate breakdown. After such monumental event, several families were left without income as layoffs and retrenchment continued in the employment sector. The results showed decline in demand as households were paralyzed by the lack of financial power. Basically, nonprofit organizations presented another alternative for individuals in need of services that are expensive. Moreover, governments in Southeast Asia have remained abysmal in providing ample social services. The rising prices of services and commodities coupled by the non-improvement in some Southeast Asian governments have made nonprofit organizations popular among the majority of the population.
The mission statement of nonprofit organizations based in Southeast Asia focuses on three important aspects. First, these institutions are challenged by the rising tendencies of poverty and the continuous ignorance of some governments. Although nonprofit organizations still require payments, the rate is relatively low. Second, the mission statement implies the quality of the services provided by the nonprofit organizations. It is imperative to emphasize on the similarities of product produced by top notch firms and nonprofit organizations. Third, the mission statement of nonprofit organizations values dedication. Despite the lack of financial capabilities, nonprofit institutions welcome individuals to avail the services and goods. Southeast Asia has been struggling to reform its markets and political environments. Yet, nonprofit organizations provide optimistic views and increase the possibilities of recovery.
Chapter 5: Human Resource Management
This chapter concentrates on the human resources management and the efforts of nonprofit organizations to create superior cast of employees. Essentially, several important elements of human resources were discussed in the chapter. Basically, the main objective of the human resources department in nonprofit organizations is to attract potential employees. Among all tasks, this is one of the hardest. Undeniably, nonprofit organizations inquire more cost that revenues. The deficit is subsidized by donations and other forms on income. Some institutions receive indirect funds from governments and are provided with privileges. Unfortunately, the funds allocated for personnel services are insufficient to attract the best applicants in the job market. Nonprofit organizations are in a dilemma whether to hire the best and reduce some services or to select average applicants and work on their development. Usually, nonprofit organizations prefer the later as cash strapped institutions are more obliged to service than hiring quality individuals. Indeed, several nonprofit organizations are forced to maximize on the available resources to tap willing and potential applicants.
Aside from selecting and motivating the staff, the human resources department has the preference on centralizing or decentralizing the workforce. Centralized workforce means that the employees are dependent of the top management. Decentralization provides more freedom and employee discretion. Each method has its flaws and benefits. The chapter explains that both have the capacity of improving the methods of maintaining human resources. Furthermore, the processes in managing volunteers were evaluated. Most nonprofit organizations have volunteers covering most of the tasks ands functions since the institutions lack the capacity to hire full-time employees.
As mentioned in the previous discussions, nonprofit organizations operating based on the necessity of majority of the population to acquire goods and services at cheaper process. Also, the lack of government initiatives becomes a contributing aspect to the emergence of non-government organizations. Describing the budget of institutions as measly is an understatement since most nonprofit organizations are obliged to perform some unadvised measures including borrowing. The bulk of workforce in nonprofit organizations is comprised of volunteers. These are willing individuals that provide services and are compensated only through allowances. In Southeast Asia region, the emphasis on attracting workers is on the possibility of development. New graduates try to seek volunteer work as the tough jobs improve most of their skills. Since experienced applicants have the edge over the inexperienced, it is likely that nonprofit organizations will get a boost. In addition, the unemployment in Southeast Asia has expanded the list of applicant willing to venture into volunteerism. Accordingly, it is advisable since volunteers are being productive while waiting for other opportunities.
Managing human resources is critical for several nonprofit organizations. Since these institutions are incapable of hiring quality applicants, volunteerism is highly suggested. Definitely, the stages of employee development have to include motivation enhancement among workers. Although firms lack the financial instruments to perform such task, there are several intangible schemes that are effective on instilling loyalty among workers. Generally, nonprofit organizations in Southeast Asia are highly decentralized. This allows more flexibility and independence among workers. The processes, however, are closely guided and evaluated by the principles that are seen in the mission statements of the institutions.
Chapter 9: Managerial Control
In the previous parts, the rationale of the creation of nonprofit organizations and the value of human resources were discussed. This section deals with the requirement of nonprofit organizations to maintain sound financial processes. This chapter discusses the need for nonprofit organizations to prepare financial statements and formulate budgeting strategies. For most institutions, being called as nonprofit is not an exemption for production of financial information. As always, all organizations that cater service and produce goods have to reveal their financial standings. It is expected that the manner in which nonprofit organizations make their financial statements are based on accounting standards prescribed by the government. Unless institutions make justifiable exclusions, then the procedures have to follow the universally implemented guidelines. In truth, most functions carried by nonprofit organizations are identified with the companies that generate income. The purpose seems to be different, but the flows of finances are similar.
Budget processes are also vital as it leads to effectiveness and efficiency. Unlike huge firms, nonprofit organizations are financially downgraded. Thus, the complete manifestations of their functions require clever and sound budgeting. Normally, the costs incurred by nonprofit organizations are classified as personnel services, maintenance, and operations. Quality budgeting is important because it will eventually decide the sector that takes the biggest share of the funds. Depending on the focus of a nonprofit organization, operation is usually allocated with the most amounts. The budget process that nonprofit organizations implement follows the prevailing market conditions and are pattered after successful schemes used by income generating companies.
Nonprofit organizations have been under the radar in Southeast Asia. Observations are apparent that these institutions have already assumed some functions of the government. Basically, it is imperative for nonprofit organizations to stay distinct and efficient. For these institutions, there are three considerations that guide the production of financial statements and the conduct of budgetary procedures. The first is the nature of nonprofit organizations. Although these entities function differently, the aspects that govern within are similar to that of income producing firms. Also, the external environments are the same with some minor variations. Ultimately, the method in which nonprofit organizations were created and operated becomes the primary reason for making financial information available to the public.
The second aspect that revolves around nonprofit organization is the issue on transparency and accountability. In Southeast Asia, some governments fund the operations of nonprofit organization. The additional budget serves as boost for the manifestation of organizational goals. Since taxpayers’ money is used, households will naturally seek for clarifications and explanations in the method of using the budget. Nonprofit organizations need to be transparent by keeping facts recorded and avoiding fabrication of information. Accountability makes these institutions responsible for the success and failures of the organization.
More important, budgetary processes are designed to improve the competency of firms. The final budget that nonprofit organizations submit serves as the financial support to all the annual activities. The soundness of the budget will allow the activities to be manifested with efficiency. It is often observed that the effectiveness of organizations is traced on the flexibility and quality of the budget procedures.
How the Book is Useful or Not
The book has its major benefits and these advantages are expected to aid students and researchers in development project management. Basically, the focus will be one the three chapters assessed and the effects of the aspects of the book in project management. First, the rationale for creating projects has to be established. As the book mentioned, the reason for creating nonprofit organizations are seen in the mission statements. In project management, mission statements are also important. These serve as the guide for future actions and decisions. The mission statement will become the primary cornerstone of project management and the implementation of project related tasks.
Second, the book analyzed the role of human resources in project development. In the same manner, the workforce in an important entity project development. Human resources in project development are vital as most of the activities in any project are manifested by the employees. The book is beneficial since it suggests ways on efficiently attracting quality applicants and motivating the employees to work productively. In addition, the author explained the difference of centralization and decentralization as concepts used in human resources management. In project development, these are critical aspects that have to be understood to be effective and efficient.
Third, the author made mention of the managerial control in the production of financial statements and formulation of budgetary processes. Performing the tasks in project management requires financial information and budget. Promoting quality project management entails the proper allocation of funds and the sound recording of transactions. The essentialities in the chapter are designed to be incorporated in the procedures to attain project management.
Overall Assessment
Overall, the book presented research based information and cases that truly define the present nonprofit organization situation. From the rationale of their creation to the manner of maintenance, Oster has critically appraised the fundamentals of nonprofit organizations. The three chapters discussed show the nature of nonprofit institutions as similar to private firms concentrating on profits. Among the aspects of nonprofit organizations, the mission statement, human resource management, and managerial operations serve the most importance. It is important to understand the aspects that make nonprofit organizations special.
Aside from the theoretical evaluation of Oster’s book, the discussion also considered the nonprofit organizations based in Southeast Asia. Since these institutions lack the financial capacity, most nonprofit organizations encourage volunteerism. Perhaps this is the most effective method of expanding the workforce and extending the services among the recipients. In Southeast Asia, nonprofit organizations exist because the delivery of service by government agencies have declined and prices of commodities have skyrocketed. The presence of nonprofit organization will provide an alternative to financially incapable households to avail their needs. Finally, the emphasis on accountability and competency has fueled the production of financial information and the sound formulation of the budgetary processes.
Overall, the book has its major advantages and some loopholes that have to be considered. This serves as a powerful tool for research and quality source of information. Sharon Oster has specifically discussed the primary importance of nonprofit organizations making these institutions vital mechanism of stability.