How do Insurance Companies Select Reinsurers?
The reinsurance market is very competitive market. After the increase in globalization and privatization, companies from all across the world are now allowed to compete in the reinsurance business in most parts of the world. In most cases, this generally means that the reinsurer is spoilt for choice. Nowadays, most cedant insurers receive several quotations […]
Authority vs Leadership
The authority exercised is a kind of legitimate power and people follow figures exercising it, because their positions demand so irrespective of the person holding the position. Leaders in organizations and elsewhere may have formal authorities but they mostly rely on the informal authority that they exercise on people to influence them. Leaders are trusted […]
Decision Making Dilemma Managers Face: How to Grow Companies in a Time of Crisis?
In the previous articles, we discussed how decision making in these times is fraught with risk, uncertainty, and ambiguity. In this article, we examine a key dilemma facing managers in these times when economic conditions are gloomy. For starters, managers face the unenviable task of returning high profits in a time of inflationary pressures. This […]
Types of Captive Insurance Companies
In the previous article, we have studied about the concept of captive insurance companies. We have also enumerated the various advantages of using captive insurance companies over traditional insurance companies. However, there was an underlying assumption that all captive insurance companies are the same. That is not the case! There are various types of captive […]
The Basel Risk Categories
The Basel guidelines are the gold standard when it comes to identifying and managing operational risks. This is the reason why every organization tries to align its risk management practices with those recommended by the Bank of International Settlements. The guidelines provided are quite exhaustive. The Bank of International Settlements has recommended that every operational […]
The decades starting with the 1990s witnessed the proliferation of a new kind of sector among the various agencies and governmental departments engaged in public service. This sector was the Non-Profit or the NGO (Non Governmental Organizations) that mushroomed all over the world to fill the gap between the governmental agencies and the public.
The intention behind the creation of the NGO’s was that in places where the government was either doing a bad job of service delivery or the government could not reach for whatever reason, the NGO’s could step in and act as the medium between the official sector or the governmental sector and the people. Hence, the term Non Governmental Organizations was coined to describe these entities. Further, the fact that the increasing complexity and the multiplicity of problems that confronted the world meant that there was need for a quasi-official entity to step in and help both the government and the society.
The rise of the NGO’s coincided with the awareness among governmental and multilateral bodies like the United Nations that the problems of the 21st century were too complex and too diverse for the government to handle them alone. Hence, there was a need for an intermediary, which would be focused on a specific aspect of the gamut of issues and hence would be able to concentrate its energies solely on the issue rather than being general like the government.
The point here is that the NGO’s comprise of experts in particular fields and hence, they can devote their expertise and energies to solve the intractable problems, which the government cannot because of the red tape as well as the fact that many government officials are administrators first, and experts next. This was the reason for the NGO’s attaining a prominent place in the pantheon of agencies that were tasked with solving the problems of the world.
Further, the NGO sector is useful to act as a watchdog to oversee the governmental programs and assess how much the government is effective in addressing them. Moreover, the NGO’s can also be focus groups who do not venture into on the groundwork but are advisory in nature. These are the public think tanks and advisory councils that routinely come up with policy suggestions and whitepapers that are used by the government and other agencies as inputs to their policymaking apparatus. Apart from this, the NGO’s can also check the leakage that is inherent in governmental programs because of bribery and corruption and hence can be the conscience of the people who would report any irregularities in the delivery of public services.
Finally, the NGO sector also comprises of volunteers who are committed and dedicated and can to the rescue of victims of natural disasters like Earthquakes and Tsunamis where the governmental and other agencies are overwhelmed and understaffed to deal with the situation adequately. These are some of the ways in which the NGO sector acts as the bridge between the government and the people. In subsequent articles, we would explore the many facets and details of the NGO phenomenon in detail and would analyze the positive as well as the negative aspects of the rise of the NGO’s.
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The Corporatization of the NGOs and How It Impacts Funders, Beneficiaries, and Others
February 12, 2025
