Chelsey Rose NGO Proposal Paper 1

In times of crisis and catastrophe, NGOs can be a valuable asset with life saving benefits, but there is a dark side. NGOs around the world have been accused of mone y laundering along with a few other decisions that are frowned upon. In countries to which the NGOs have entered, under the guise of aiding, they are being accused of hiring away the most educated people, and providing aid in things the people can do for themselves. These types of acts are negatively impacting the economy, and allowing the Southern Sudanese to become so dependent they put themselves at risk by assuming the organizations will take care of them. NGOs need to provide the Southern Sudanese a hand up, not a hand out. There needs to be more oversight to hold NGOs to a higher standard regarding the aid they are providing. Acts by NGO groups that prove to be destructive should be punished with a monetary penalty. If the detrimental actions continue, the group(s) should be stripped of their NGO status, and the resulting benefits of that status. While some may argue that imposing penalties would discourage NGO involvement in areas of need, it would only deter those with less than pure intentions. There is a shortage of educated people in South Sudan that are capable and motivated to make a difference in the future of their land. Those that have the luxury of becoming educated are often hired away by the NGOs. While it may have a benefit to that individual, in the big scheme of things, it has the devastating effect of hiring away those in the best position to make a difference in the turnaround of the country. If the individual works for the NGO, their loyalty is to them. South Sudan needs framework for the funneling of funds into keeping their educated employed within their own country, and working for the betterment of South Sudan. NGOs around the world are vulnerable to being targets for money laundering. They are often set up outside the nation they are purporting to help, have large influxes of donations from

Chelsey Rose NGO Proposal Paper 2 multiple sources, and the tracking system is very complicated. Organizations that are targets for money laundering are an attraction for crime and corruption. The last thing needed in areas such as South Sudan. It is necessary for international banks to be responsible in their banking practices. Ethical banks follow guidelines set up to help recognize and prevent money laundering. These rules and regulations should be implemented as universal standards for all NGO groups, both national and international.

Even NGOs with the purest of intentions can have negative outcomes due to poor research and planning. Every year hundreds of thousands of t-shirts are sent to impoverished nations, including South Sudan (often depicting the losing team as champion in some sporting

Chelsey Rose NGO Proposal Paper 3 event). While the motives may be pure, coming in to an area and doing for them what they can do themselves destroys the economy. By supplying for free, what the locals can produce for themselves, they eliminate product demand. Thus eliminating jobs. Some areas with garment industries have reported a 40% decline in local economy directly tied to t-shirts alone. Careful thought and planning must be utilized before engaging in charitable activities in fragile societies. One must be helping the future of the area, providing ways for them to do for themselves and build their future, not just doing for them. The South Sudans increasing, even aggressive, dependence on foreign aid is yet another way that NGOs are having a negative effect in the South Sudan. Allowing the people to become so dependent they make risky decisions that impact their future. Shortly after South Sudan seceded, the president made the decision to shutdown the oil pipeline, the source of 97 % of the countrys economy. Assuming the NGOs would step in and take care of them. The decision was made, without mention to any of the supporting aid groups. Leaving them scrambling to take care of the nations needs. This was not a level of care of which they were capable of providing. Leaving some groups overwhelmed, and frustrated over the attitude of entitlement. While the problem of money laundering and the attraction of criminal organization is something that has to be addressed at an international level, the other issues need to be addressed at a local one. The common thread in these trouble areas is that certain NGOs are more concerned with finding an immediate way to help that is not necessarily of long term benefit or, even worse; has detrimental long term effects. NGOs need to educate themselves on the areas for which they are providing assistance, and the influence and effect that assistance has in an area. While there are immediate needs to be addressed; food, water, and shelter. Those needs should be attended to, while simultaneously implementing framework that allows the Southern

Chelsey Rose NGO Proposal Paper 4 Sudanese an ability to support themselves in a sustainable way. As the old chinese proverb says If you give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.

Work Cited Corruptions Perceptions Index 2013, transparency.org, 2013.Web 11 April, 2014 GUIDELINES ON PREVENTION OF MONEY LAUNDERING AND TERRORIST FINANCING FOR NGO/NPO SECTOR, Bangladesh-banking.org, 2013. Web, 6 April 2014 NGOs: Vehicle for money laundering, SCUML.Org, 2013. Web, 6 April 2014

Chelsey Rose NGO Proposal Paper 5 Nongovernmental Organizations and Charities - Overview, FFIEC.Gov, 2010. Web, 6 April 2014 Risk management guidelines related to anti-money laundering and terrorist financing issued by the Basel Committee. (2014, January 15). Bank For International Settlements. bis.org. Web, 11 April 2014 Seay, Laura. (2011, February 15).The Steelers Won the Super Bowl? T-shirts Sent to Africa Say So. The Christian Science Monitor. http://www.csmonitor.com

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Chelsey Rose NGO Proposal Paper 6