Indonesian Political, Business & Finance News

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

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