For last week or so, media, both print as well as electronic, has been abuzz with how Indian NGOs are trying to sabotage the Indian economy by decelerating economic pace, as if they are the neo Jaichands in the new political order. Most of this coverage is based on a secret report of Intelligence Bureau (IB). (The report seems to be secret only from the NGO community and freely provided access to media.) Thus it is clear that the intention of this publicity blizz is not to seek a debate on the issues identified in the report but to build a negative environment against the NGOs. The report goes on to even predict how in coming years these NGOs will further decelerate the economy by targeting IT industry through e-waste, mining, among others. Thus painting these NGOs as anti-nationals working against the interests of the country (the campaign just fell short of calling them spies.) These NGOs have not been accused of breaking any law.
It may be worth summarizing how the legislation which regulates foreign donations, namely Foreign Contribution Regulation Act 2010 (FCRA for short) operates. No NGO can receive foreign funds without prior permission / registration from the central government. Getting such permission or registration from the government is no cakewalk. One needs to wait endlessly, often without any specific information why permission or registration is being delayed. Although the legislation requires that normally permission be granted within 90 days, but if one is lucky, it could come within 6 months to a year, but generally speaking there are no norms and one has to wait endlessly without any way of knowing what could be the reason for delay. More often than not permissions are not granted even after 2 years or more of applying. It may be worth mentioning that earlier version of FCRA Act made it obligatory on the Government to issue permission within 120 days, after which it would be deemed that the permission has been granted. Courts also upheld this provision (Sarvjivan Unnati Bodhini vs Secretary to GoI 2011). However this measure of accountability was removed in 2011 by the Government, leaving NGOs totally in dark. It may be mentioned that permission or registration are not granted just by a simple case of application, NGOs are subjected to a thorough field inspection by an IB officer, who validates all supporting records/information submitted by NGO, antecedents of the promoters and the NGO. In addition to above, these days the information is also sought from the concerned ministries about the proposal, thus further delaying the permission.
It may be mentioned, such delays often cause foreign donors to move to other NGOs who already have FCRA registration or even to other countries, thus country loosing foreign funds meant for social causes. It is well-known that foreign donors are finding India as one of the least attractive country for giving grants, because of the red-tapism involved. In last decade or so, innumerable donor agencies have closed shops in India or even moved away from Indian development sector. This is a direct loss to Indian social sector. Unknown to Ministry of Home mandarins, there is innumerable documented evidence on how Indian social sector has moved away from charity (giving direct benefits) to rights based support. These developments, while one does not give carte blanche credit to foreign development agencies, however their contribution in this aspect cannot be wished away. Many of such developments have been even accepted and adopted by the Government of India. That is why today we have Right to Information, Right to Education or Right to Food.
It is not that once permission is granted, NGOs are free to undertake work without any restrictions. They are regularly monitored, are required to file online, as well as, signed copy of return alongwith a large number of documents, including audited accounts, bank statements, etc.
S. 3 of the FCRA Act prohibits certain persons from receiving foreign funds, logic being that country’s decision-makers and policy-makers, such as legislature, political parties, judges, government servants, should not receive foreign funds, as this may compromise their decision-making. Not only this, even TV and newspapers (who are otherwise allowed to receive upto 26% of FDI under the automatic route and proposed to be enhanced to 49% by Arvind Mayaram Committee), under FCRA are not allowed to receive any foreign contribution. How the two laws reconcile themselves is anybody’s guess. Ministry of Home Affairs has never tried to enforce this prohibition against the news media, perhaps too afraid of a backlash. Even journalists, cartoonists, etc. are prohibited from receipt of any foreign funds, MoH fearing that media and journalists can influence the policies in the country through their TV channels and publications, although no evidence of this has ever been made available.
Recent IB report seems to have taken this fear-mongering to a new level, the Government now even seems to fear debates and protests. FCRA came into being wayback in 70s, in the backdrop of coup in Chile in 1970 allegedly through CIA’s shenanigans, raising ripples through a number of countries, including India. At the time a number of MPs raised the concern and even the then Deputy Home Minister made reference to it while discussing FCRA in the parliament. However 2014 is not late 60s or early 70s, when India was still a fledgling democracy. The strength of our democracy and robustness of our media is envy of the world and it certainly can withstand any outside pressures. Maturity of a democracy can be gauged only when the country allows open discussion on all issues, even opinions with which it may be uncomfortable with. India has had history of diverse opinions, that is why it is credited with first major elected communist government anywhere in the world, when US was using McCarthyism against left-wing sentiments.
To say that an argument is bad simply because it is supported by some foreign organisations is no argument. From what seems to appear in the press, IB authorities feel that the right based approach is the culprit for slow down in the economy and they feel it is the NGOs who are the culprits to start it all. For example, the argument that NGOs who filed petition in the supreme court for Right to Food were acting against national interest, simply because they have received foreign funds. Dare I say, such an argument is heresy, considering judges and government of the day ultimately also agreed with the argument and the enacted legislation will help millions of poor who cannot afford food.
Similarly Right to Information was enacted only after a long struggle and has been acclaimed as one of the strongest law that the country has ushered to contain the endemic corruption. Similarly banning NGOs or stopping their resources for raising agitations against mining or even nuclear energy are simply wrong. After all, it is the NGOs who started campaign against plastics in the rivers, much before it was adopted by the Government. Sunderlal Bhauguna, a national icon, started campaign against the big dams, long before it became fashionable to talk against the same.
Government often argues that there is no problem if Indian funds are used for such agitations, fully knowing that no one will fund the agitations against the government. Major donors in India are either the Government or the corporates. Which government or corporate would fund agitations which are against them only? Hence if Indian NGOs are able to raise resources from outside India, why stop them, if the government believes that these organisations are wrong, fight such agitations using democratic means and not the reprisals and witch-hunt that MoH seems to have adopted.
One also needs to question the relevance of FCRA Act, which currently has become an instrument to stifle the civil society voices which are different from those of establishment. India during 2012-13 receive around USD 125 billion including remittances from NRIs, compared to that under FCRA total funds received by around 17000 organisations comes to less than USD 2 billion, which works out to around an average contribution of around Rs 60 lakh only. Can India really be destablized using such kind of funds or is FCRA just an instrument to coerce the dissenting voices into submission. The Government is plainly wrong in running such a coercive campaign against foreign funded NGOs and NGOs must fight this.
As always every negative has a positive side, perhaps this campaign has brought a larger message for the NGO community, that there are no easy solutions to the communities financial vulnerabilities. The government headed by a master strategist knows that it is easy to win this battle against NGOs simply because of negative connotations of foreign funding perceptions amongst the public at large. Perhaps the NGO community has to start introspecting and innovate in finding resources locally, more so from the communities that they serve. CSR (Corporate Social responsibility) funds would never be an answer, since no corporate would like to associate with any campaign which is critical of the government of the day. It may be a long and hard struggle, but could provide the lasting solution to the NGOs financial struggles. After all as Mathew Cherian documents in his very lucid and informative book ‘A Million Missions’ that over 1.2 million voluntary organisations spread all over the country are a force to reckon with.
– Subhash Mittal is a Chartered Accountant and Secretary, Socio Research Reform Foundation, New Delhi. These are his personal views only.
