NGOs, SHGs & Development Processes

Overview

NGOs, self-help groups and cooperatives connect citizens with development; regulation balances their autonomy with accountability.

Key points

• The Foreign Contribution (Regulation) Act, 2010 (amended 2020) regulates foreign funding of NGOs.
• SHG–bank linkage began under NABARD in 1992; DAY-NRLM (2011) organises rural women into SHGs.
• The 97th Amendment (2011) added Part IXB on cooperative societies and made forming cooperatives a fundamental right under Article 19(1)(c).
• A Ministry of Cooperation was created in 2021.
• Companies meeting thresholds must spend 2% of average net profits on CSR (Companies Act, 2013, Section 135).
• NGOs contribute to service delivery, advocacy and accountability.

Practice MCQs

1. From the perspective of definition and scope, which one of the following statements about NGOs, SHGs & Development Processes is correct?

   1. NGOs, SHGs & Development Processes is unrelated to institutions, processes or real-world applications.
   2. NGOs, SHGs & Development Processes has no exceptions or limitations in exam analysis.
   3. Civil-society organisations, community groups and self-help groups can support mobilisation, service delivery, accountability and livelihoods.
   4. Non-state participation makes public accountability unnecessary.

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   Answer: (c) Civil-society organisations, community groups and self-help groups can support mobilisation, service delivery, accountability and livelihoods.. Civil-society organisations, community groups and self-help groups can support mobilisation, service delivery, accountability and livelihoods.

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2. Consider the following statements on NGOs, SHGs & Development Processes and Bilateral, Regional & Global Groupings, focusing on definition and scope: 1. Non-state participation makes public accountability unnecessary. 2. Membership in one international grouping permanently determines a country’s position on all other issues. Which of the statements given above is/are correct?

   1. 1 only
   2. 2 only
   3. Both 1 and 2
   4. Neither 1 nor 2

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   Answer: (d) Neither 1 nor 2. Neither statement is correct; both are common misconceptions.

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More topics in this chapter

• Election system
• Constitutional & Statutory Bodies
• Government Policies & Implementation