Type: EconomicsThesesMasters Theses
Year of Publishing: 2011
Keywords: Global Economic Crisis, Effects of Economic Crisis, Global Meltdown Effects of Global Meltdown, Local nongovernmental organizations, Financial resources, Quality of services, Coping strategies, Grants reduction, Grants withdrawal, Aid, AID Value, Foreign Direct Investment (FDI), Growth Domestic Product (GDP), Developing countries, Developed Countries
This research was aimed at establishing the effects of the global economic crisis on local nongovernmental organizations in relation to their financial resources, quality of services and coping strategies in the event of grant reduction or withdrawal. The research study was also conducted to establish how Non- governmental Organizations are planning to strengthen social service delivery capacities during the crisis periods.
The research study employed both qualitative and quantitative methods using a questionnaire that was distributed to key informants in 46 sampled NGOs. The study found out that the global economic crisis has affected the grants to local NGOs as well as the quality of interventions being provided where a bigger percentage of Local Nongovernmental organizations on average 36 NGOs (78%) have experienced negative reductions on their grants in the region of 1-25% and 50-75% and a significant number averaging 5 (11%) experiencing the worst reduction in the range of 75-100% from 2007 projected to 2012.
The NGOs that have experienced aid reductions have also experienced negative effects on the quality of their interventions. Since this trend has been almost the same for the period under study, the local NGOs have discovered coping strategies that have been incorporated in their service delivery in order to maintain the quality. The reduction in the grants has also been aggravated by Government policies such as the exchange rate framework that have contributed to the effects affecting the value of aid the NGOs have been receiving.
The research study recommends that local NGOs must improve their knowledge levels of global economics and the incorporate the issues in their planning. The research study further recommends that local NGOs must reduce their reliance on external support by identifying other sources of mobilizing funds. In the same vein, the government through the Ministry of Economic Planning and Development must work out proper economic principles that will properly affix the exchange rates so not to affect the value of aid for the NGOs.
