NGO Government Contracting in Developing Countries
This paper examines the opportunities and risks associated with government contracting of NGO services in developing countries. Drawing on case studies from Pakistan and Haiti, it explores how contracting can compensate for weak political and economic institutions while also reinforcing neoliberal structures, undermining elected governments, and widening wealth disparities. The paper identifies key considerations nonprofits should evaluate before entering government contracts—including political climate, market forces, and procedural transparency—and recommends an incremental contracting approach to preserve democratic integrity and strengthen local institutions rather than foster dependency.
- Introduction: Promise and Peril of Government Contracting: Contracting aids NGOs but carries political risks
- Neoliberalism, NGOs, and Political Risk: NGOs risk reinforcing neoliberal inequalities
- Key Considerations Before Entering a Government Contract: Nonprofits must assess politics, markets, and transparency
- Recommendations for Responsible Contracting: Incremental contracting preserves justice and institutions
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What makes this paper effective
- Balances optimism about contracting's potential with a clear-eyed critique of its structural risks, avoiding a one-sided argument.
- Grounds abstract policy claims in specific scholarly sources (Zaidi et al., 2012; Schuller, 2009), lending credibility to each assertion.
- Moves logically from problem identification to practical recommendations, giving the essay a clear analytical arc despite its brevity.
Key academic technique demonstrated
The paper demonstrates effective synthesis of multiple sources to build a nuanced argument. Rather than summarizing each source separately, the author integrates Schuller's political critique of NGOs with Zaidi et al.'s policy-level findings to construct a coherent, multi-dimensional position on government contracting.
Structure breakdown
The paper opens with a thesis establishing both the promise and the risk of government contracting, then draws on Schuller to develop the neoliberalism critique. The second paragraph pivots to practical guidance—what a nonprofit should examine before contracting—and closes with a conditional endorsement of contracting when implemented carefully. References follow in APA format.
Introduction: Promise and Peril of Government Contracting
Government contracting can greatly facilitate the goals of various non-governmental organizations (NGOs) operating in developing countries, while also compensating for weak political or economic institutions. However, the "inherently political process" of contracting also presents unique challenges (Zaidi, Mayhew, Cleland, et al., 2012, p. 571). Government contracting can impede social justice and exacerbate the repercussions of neoliberalism. Therefore, government contracting of services such as healthcare can be promising but must be implemented judiciously to avoid undermining core goals like public health and social justice.
Neoliberalism, NGOs, and Political Risk
As Schuller (2009) points out, NGOs strengthen neoliberal institutions, have the potential to undermine elected governments, and can widen wealth disparities. This critique is particularly relevant in fragile states, where neoliberal policy frameworks may already strain democratic accountability. Contracting arrangements that prioritize market efficiency over equity can deepen these structural problems rather than alleviate them.
Key Considerations Before Entering a Government Contract
The fundamental concerns a nonprofit should examine before engaging in government contracting include an assessment of the political climate and market forces, alongside a strong regard for procedural transparency. Zaidi, Mayhew, Cleland, et al. (2012) show how NGOs operate within a broader policy climate that can constrain their efficacy. NGOs may need to operate with greater independence than contracting would allow. Moreover, government contracting can create acute and long-term problems when services are market-driven rather than driven by social justice goals.
Zaidi, Mayhew, Cleland, et al. (2012) advise an incremental use of "fewer and smaller contracts" to build relationships and test market stability (p. 579). The contracting process needs to be more transparent to ensure that democratic processes are not eroded in fragile governments. NGOs also need to take responsibility for their own role in strengthening local institutions rather than creating systems of artificial dependency. Their findings from a Pakistani health service delivery context illustrate how context-specific factors—infrastructure, governance capacity, and existing market conditions—fundamentally shape whether contracting succeeds or fails.
References
Schuller, M. (2009). Gluing globalization: NGOs as intermediaries in Haiti. PoLAR: Political & Legal Anthropology Review, 32(1), 84–104.
Zaidi, S., Mayhew, S. H., Cleland, J., & Green, A. T. (2012). Context matters in NGO–government contracting for health service delivery: A case study from Pakistan. Health Policy and Planning, 27(7), 570–581. Retrieved from http://heapol.oxfordjournals.org/content/27/7/570.full
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