Improved NGO financing necessary for operations
Improved NGO financing necessary for operations
SEOUL: The recent controversy involving one of the nation's leading civic groups, Citizens' Coalition for Economic Justice (CCEJ), again brought to the surface a crucial problem facing the nascent civil society in the country in general -- how to raise funds necessary for its operation.
The organization was found to have sent notes to several state-invested firms prior to its fund-raising event held in November, requesting contributions of up to 10 million won. As a result, the group collected a total of 47 million won from 10 companies including 12 million won from three state-run corporations -- Korea Electric Power Corp., Korea National Housing Corp. and Korea National Tourism Corp.
The fact that a civil organization has solicited money from specific state-invested firms itself poses a serious question about the morality of the group. The organization last year undertook not to receive any subsidies from the government when public criticisms were raised over the validity of a boycott campaign against "unqualified politicians" conducted by civic groups financially supported by the government.
The timing of this recent request by the CCEJ for funds was particularly inappropriate, given the fact that the organization had just demanded that heads of the state-run corporations make public how they used their expense accounts. The group officials strongly denied any intentions behind the disclosure of misused funds, saying that they had already conducted probes into the expense accounts of the executives of state-run businesses for several months. But the fact that the two coincided is enough to raise the question whether the civic group's probes were a form of indirect pressure for more donations.
Even more disconcerting is the attitude displayed by the CCEJ officials since the controversy erupted. By arguing that they have received financial support from state-invested firms since 1997, they seemed to insist that receiving donations from the state companies was something taken for granted. But officials of the state firms are saying that the request for donations is no different from the demand for appropriation of the corporate funds.
Financial independence has been a most urgent issue facing non-governmental organizations (NGOs) in the country, which have a short history spanning some 10 years or so. The theory is that these organizations should be operated with the membership fees and voluntary donations from individuals and the corporate sector. The reason cited for this is that civic organizations can fulfill their function of monitoring the government and businesses only when they are financially independent.
In reality, however, it is almost impossible for civic organizations in Korea to meet all their running expenses solely from membership fees. The public's participation in NGO activities is still very limited. CCEJ is one of the biggest civic groups in Korea with some 35,000 members. But membership fees only cover 30-40 percent of its budget, which amounts to some 1 billion won. The situations facing other smaller civic organizations are still worse. The problem is that these NGOs are expanding their influence and power, without resolving this fundamental problem of how to meet their expenses and retain their independence at the same time.
The positive function and importance of NGOs in modern society needs no further elaboration. In Korea also, the civil organizations fully demonstrated the potential of their power through their successful campaign to boycott corrupt and unqualified politicians on the eve of the general elections last April. But as long as these organizations are left on a weak financial footing as they are now, we cannot rule out the possibility that an increasing number of NGOs will become prone to some kinds of irregularities like soliciting donations from organizations targeted by their monitoring activities.
The government should seek ways to assist them. Extending benefits like the discounted rates in postal, telephone and other communications services may be one way. These organizations could also be given taxation benefits on the facilities they use.
Civil organizations should also make greater efforts to induce citizens' participation in their activities. While these groups blame their weak financial state mainly on the public's indifference, we believe that they have not made adequate efforts to publicize their activities among the public. Their financial woes aside, the civil society cannot exist and function effectively without active participation of the citizenry.
-- The Korea Herald/Asia News Network