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NGOs Defend Foreign Funding

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By Singh, John and Damis

New Straits Times, Malaysia
June 02, 2002


The issue of foreign funding and non-governmental organisations came under the spotlight when some local NGOs were accused of trying to "do the country in".

Ironically, it was a foreign organisation, the Institute of Public Affairs (IPA), an Australian think-tank, that raised the issue, accusing three NGOs of having received US$9,500 (RM36,100) from American sources to carry out projects to oppose the RM9 billion Bakun hydroelectric dam project in Sarawak. Selling the country for a few thousand ringgit? Preposterous, say the NGOs.

There is no denying that foreign funding is sought, and received, but all NGOs, not just the three which have been accused by IPA, say the donors they approach are fully aware of the "no-strings-attached" condition.

National Council of Women's Organisation (NCWO) deputy president Ramani Gurusamy says regular foreign donor organisations and funding agencies do not have a policy to cause mischief. She says there are recognised funding agencies that most NGOs approach when local funds are insufficient for their projects.

"As far as the NCWO is concerned, we believe NGO funding is with no strings attached. There are, however, strict guidelines to be followed which include the submission of periodic financial and progress reports to donors."

The Consumers Association of Penang (CAP) and Sahabat Alam Malaysia (SAM), two of three organisations named by IPA, have built up a reputation over the years they would fight hard to protect.

"We seek financing on our own terms. We do not allow anyone to dictate terms to us," says S.M. Mohd Idris, president of both organisations.

Both groups speak their mind on issues they strongly believe in, whether they are at home or abroad. The effects of the Bakun dam project, indiscriminate hill development, open burning, conservation, consumer protection, profiteering, the evils of tobacco and illicit liquor. The list of issues that CAP has taken up is long.

Both CAP and SAM, says Idris, have criticised the North's globalisation and liberalisation agenda which is detrimental to developing countries.

The monopolistic practice of the pharmaceutical giants that means exorbitant prices for life-saving drugs has also come under attack by CAP and other NGOs.

Whatever the noble cause, the NGOs need funding and they look for it at home, mostly from the Government, and from abroad. Many turn to foreign funding as there is just not enough money locally.

"From my experience and years of travelling and working in the South, NGOs have to turn to external sources," says Dr Chandra Muzaffar, president of the International Movement for a Just World (JUST).

"It's not only a problem in Malaysia but all over the South. It is a reality we cannot run away from. For the very poor countries, it is because they have no financial base and cannot expect funding from an impoverished population.

"For countries like Malaysia and Singapore, there is no culture of philanthropy and only a very small number of individuals or groups support societies like these out of their own volition."

Chandra, who also used to head Aliran Kesedaran Negara (Aliran), one of the country's oldest human rights group, says it is erroneous to say that funding bodies in the North dictate terms in every instance.

In any case, foreign funding is not so easily available as many believe. CAP and SAM have to generate much of their own funding as many foreign donors are less interested in supporting groups in Malaysia.

Idris says the two NGOs have to sell publications, T-shirts, handicrafts and other items. They also seek funds from United Nations agencies.

Federation of Malaysian Consumers Associations deputy president N. Marimuthu says local money funds all its projects.

Marimuthu is also the president of Era Konsumer, an organisation that gets 25 per cent of its budget from abroad. The main donors include the Japanese Embassy and Canadian High Commission.

"I don't understand the fuss about getting foreign fundings," says Marimuthu.

"Even the Government and public universities sometimes get financial assistance from foreign foundations to carry out research or social work."

Pesticides Action Network Asia Pacific (Panap), the third NGO labelled as anti-Bakun by IPA, draws attention to the billion in foreign investments. Does this mean, says Panap executive director Sarojeni Rengam, that the Malaysian Government is being dictated to?

Sarojeni says they send project proposals to organisations that may be interested to come in as sponsors.

"No one determines our policy or agenda, except for our constituents who are farmers, women's movements and the global Pesticides Action Network body which we belong to," she says.

Panap foreign fund providers come from Germany, the Netherlands, the United Kingdom, Japan, Canada and Thailand.

It is also not easy for Malaysian NGOs to get foreign funds.

"Foreign funders say we have the Petronas Twin Towers and KLIA, so they think we are a country that doesn't need help," says Malaysian AIDS Council executive director Nik M. Fahmee. "But they don't look at it from the NGO level. We do need help."

Malaysian AIDS Foundation (the fund-raising arm of MAC) executive director Indra Kumari Nadchatram says Malaysians should take responsibility for local projects.

Involving locals, she adds, means educating them about HIV/AIDS and showing them that they should have an involvement in the matter.

Indra says they have long realised there are no free lunches in this world.

"Every individual or corporation wants something in return - publicity, to be seen supporting certain causes, tax exemptions or just an assurance that you are doing a good job.

"The issue is not just foreign funding but any funding where the donor wants to impose his agenda. The question has to be: does this enhance or hamper the value of our programme? If it hampers, then it (the donation) is not worth it."

All NGOs, however, have this to day: at home or abroad, it's just not easy to get money.

MAC receives funds from the Health Ministry but says it is hardly sufficient. In 1999, they asked for RM988,000 and got RM78,000. In 2000, they asked for RM1.6 million and got RM152,000; last year, they asked for RM1.6 million and received RM115,000.

Every year, MAC needs a minimum of RM2 million to fund the projects of its affiliates. But last year, it got less than RM600,000.

This meant they had to stop some projects, or the treatment programme for HIV positive people or public education programmes would have to be put on hold. This was just not thinkable.

Fortunately, MAC had some reserves, and they were able to make the difference and the projects scheduled this year are being carried out. This may not be the case next year, says Nik.

If left to choose between shutting down MAC projects and taking money from foreign funders, says Nik, they will certainly accept foreign funding.

Funding in the North is easier, says Chandra, because of the concept of philanthropy. People there make huge endowments, leaving millions to NGOs. Sometimes, whole families bequeath a large sums to public-service groups.

In Malaysia, companies, organisations or individuals could be reluctant to fund NGOs considered to have taken a confrontational stance against government policies or issues.

"Locals may feel uneasy about supporting these cause-oriented organisations while trying to maintain good relations with the Government," Chandra says.

However, if foreign funding is stopped many NGOs doing good work will not be able to function at all.

Chandra proposes an independent community chest be set up as a source from which all NGOs could draw finances. This will eliminate much of the need to turn to foreign funding and assuage fears that such funds may influence the NGOs.

As MAC's Nik puts it: "Society should take responsibility for society."

On whether there is a need for legislation to stop foreign funding, NCWO's Ramani says: "A big no, because Malaysia has not reached the stage when national and local funding can meet the financial needs of all NGOs."

Idris says it will seriously affect the operations of many organisations should the Government come up with such a law.

"Issue-based NGOs are serving crucial needs, especially for the marginalised sectors of our community," says Ramani, whose NCWO works to increase the participation of women at decision-making levels and eliminate gender discrimination.

CAP and SAM attend to at least 2,000 to 3,000 complaints yearly from consumers, seeking redress from unscrupulous manufacturers, public bodies, service providers and the like.

While there are generous Malaysians who appreciate NGOs and provide some funding, there are many who do not understand the reason for NGOs, let alone provide them with financial support.

"When CAP first began operations in 1970, we were scoffed at," says Idris.

"Today, we have a Ministry of Domestic Trade and Consumer Affairs, a Consumer Protection Act and now people even receive awards for consumer work.

"The same was the case when CAP and SAM began to voice concern about the environment. We were viewed as being anti-development. Today, we have a ministry which deals with environment-related matters and environment laws."


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FAIR USE NOTICE: This page contains copyrighted material the use of which has not been specifically authorized by the copyright owner. Global Policy Forum distributes this material without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. We believe this constitutes a fair use of any such copyrighted material as provided for in 17 U.S.C § 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond fair use, you must obtain permission from the copyright owner.