Update on Government Funding for NGOs
New fundingrules are clearer but still notattractiveas the direction and focus on Government funding continues to evolve away fromtraditional good practice say Non-government Organisations (NGOs) involved in the process. Pauline McKay attended a meeting with the Ministry of Foreign Affairs and Trade (MFAT) International Development Group on 30 August to discuss the new funding window for NGOs, the Sustainable Development Fund (SDF). The SDF has held two rounds to date. Many agencies have raised concerns about the SDF and its overly bureaucratic procedures with some suggesting the level of funding may not be worth the effort. Generally, people were happier with the procedures under the second round but find there is considerable room for improvement. The emphasis on sustainable economic development before the preconditions have been established and poor process are some of the recurring themes.
The second round of funding for programmes over $500,000 allocated 53% to the Pacific, 20% to South East Asia, and 27% for the rest of the world. This is still considerably short of the (official) 75% goal for the Pacific. Interestingly 60% were for water and sanitation projects. Applications were reviewed by the Selection Panel (Peter Kiely, Therese Walsh and John Hayes MP) and MFAT staff. MFAT are preparing a document outlining their understanding on sustainable economic development. The next round will be in April/May 2012 and the appropriate information will be available to applicants well in advance unlike in previous rounds. There is likely to be one round a year.
Although many applications involving the private and education sectors weren’t successful the selection group emphasised their preference for those that fitted the “NZ Inc” foreign policy goal. New Zealand is keen to expand its influence in the Pacific amidst growing competition. Currently its Official Development Assistance (ODA) budget is on par with China and the EU but well behind Australia, the largest funder. China’s growing influence in the region is of concern to the Government.
The Consultative Group made up of representatives of NGOs reported on the survey of NGOs which found that the second round was generally better. However difficulty around definitions and differing interpretations even from MFAT staff providing advice to NGOs were identified as issues. Many noted the inadequacy of communication from MFAT including the changing timelines and lack of transparency in the application process. Others felt that it would be fairer if MFAT identified a standard percentage of grants that could be used for NZ-based costs including monitoring.
The Foreign Affairs minister, Murray McCully, has stated that he intends to increase funds available under the scheme but the majority of applications were turned down. The independent monitoring group Development Action in reviewing approximately 10% of second round applications provided by NGOs found that they were of a higher standard than the first. Although they have yet to present their final results, they point to difficulties in definition including around what is meant by ‘quality’. Development Action has found it difficult to get MFAT to release the relevant information under the Official Information Act even when approached by the Ombudsman. Concern has been widely expressed that the results of the rounds involving public money have not been made available to New Zealand taxpayers.
CWS success in Funding Rounds
In the first round CWS received $164,000 for the Community Development Trust in Tonga for one year to undertake a survey and repair work of water tanks with a view to a subsequent application to improve local supply as well as work on food security and disaster preparedness. In the second round a joint application or Concept Note with Caritas for the Ecumenical Centre for Research, Education and Advocacy (ECREA) in Fiji has been approved for further development. The Concept Note for work in the squatter settlements includes funding for $864,000 over three years.
Global Indicators
In July the United Nations released its latest report on the achievement of the Millennium Development Goals. With little more than four years to go, the outlook for the Pacific is not good and parallels that of sub-Saharan Africa. On average one in four families lives below the basic needs poverty line[1], reaching as high as 50% in Kiribati. Around one million school age children are not receiving an education.
Globally it is expected that the first goal of halving poverty by 2015 will be met because of the strong improvement in East Asia, especially China. The UN notes that the poorest children are making the slowest progress in achieving the goals and of the primary aged children not enrolled in school, 42% - or 43 million live in poor countries affected by conflict. It found that 2.6 billion people remain without access to toilets or improved sanitation and it is poor people who continue to miss out.
With food prices rising 33% in the year ending July 2011 according to the World Bank, the outlook for the world’s most vulnerable people is not good. Much attention is paid to the shaky economies of Spain, Greece and Italy but out of the media almost 1 billion people live in poverty. In India one of the feted emerging economies with a predicted 9% economic growth this year, 37% of people live below the poverty line. This amounts to 410 million or one third of all the world’s poorest citizens. The percentage of New Zealand’s Official Development Assistance has remained around 0.3 of the Gross National Income well below the 0.7% committed by New Zealand governments at international gatherings.
CWS Comment
CWS welcomes greater transparency in the SDF process but believes there is still much room for improvement. We are concerned about the dismantling of a globally well regarded aid programme based on the eradication of poverty for narrower foreign policy interests. Good development is about the people themselves deciding their own priorities and having the resources to make them happen. It cannot be directed from outside. While aid is not usually a high priority for New Zealand election campaigns, CWS will be circulating material for those who want to raise matters with political candidates. The right of all people to safe, sufficient, nutritious and adequate food will be high on the list as well as the need for increased ODA to meet the needs of the world’s poorest citizens. The Council for International Development is preparing a briefing for the incoming government in recognition of the $130 million the sector raises each year with the support of a quarter of the population.
September 2011
[1] http://www.undppc.org.fj/_resources/article/files/5.pdf