SOCIETY: NGOs an Economic Factor in Brazil

By Mario Osava Reprint | | Print |

Mario Osava

RIO DE JANEIRO, Oct 20 1999 (IPS) - Non-governmental organisations (NGOs), the so-called “third sector” of society in Brazil, is now something of an economic powerhouse – employing 1.1 million people and representing 1.5 percent of the gross domestic product.

NGO’s involve some 220,000 non-profit institutions – foundations, study centres and community, family or environmental associations that involve some 11 million dollars.

These figures are supplied by the Institute of Religious Studies (ISER), itself part of the third sector, which has been involved in international research in cooperation with the Johns Hopkins University of the United States.

In addition to the 1.1 million salaried workers, NGO’s in Brazil have attracted 333,000 permanent volunteers and the sector is growing at a much faster rate than the economy, despite the obstacles it has encountered in this decade, says anthropologist Leilah Landim, the Brazilian coordinator of the U.S. report.

The momentum of NGOs has remained strong in large part thanks to the support of the business sector in carrying out social projects and donations from existing groups.

But compared to the United States, where it is estimated that the third sector represents 10 percent of the GDP, Brazil has a long way to go.

A third of all NGOs in Brazil are involved in education, while activities in the areas of health care, culture and social assistance occupy about 16.4 percent of the total.

NGOs have had their problems in the past 10 years, especially those who relied on foreign donors. Support from abroad fell dramatically, due both to a reduction in European aid and the fallout of the devaluation of the Brazilian currency in January.

There also have been campaigns against the credibility of NGOs, especially those that assist abandoned children in Brazil. Critics, for example, asked why there were as many volunteers as homeless children in some cities, yet children were still living on the streets.

International conferences convened by the United Nations, particularly those on the environment and development that took place in Rio de Janeiro in 1992, caused the number of NGOs to mushroom – although many groups were short-lived.

Once the initial elation subsided, the surviving foundations and community or philanthropic associations began seeking ways to development an effective management, especially in the area of fund raising.

In response, the Getulio Vargas Foundation, a school of administration in Sao Paulo, created the Centre of Administrative Studies of the Third Sector (CEATS), which offers six-month courses that, so far, have been attended by more than 500 managers.

The founders and activists among NGO groups tend to concentrate on their organisation’s social objectives, which has created a great demand for professional administrators, explained Luiz Carlos Merege, the coordinator of CEATS.

Two universities in Sao Paolo, one Catholic and the other state- run, also offer training for managers of non-profit organisations at both the graduate and post-graduate levels.

But the effectiveness of such courses has been questioned by Stephen Kanitz, a business consultant who investigates NGOs and selects the 50 each year that merit a “high efficiency” award – a citation that helps them raise funds from the private sector.

Third sector institutions are generally too small to afford full- time salaried administrators, but they still manage their resources well, says Kanitz.