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Published on: 03/02/2025


Image generated by ChatGPT depicting a community in the Global South, symbolising social progress, collaboration, and sustainable development

For many years, development NGOs have been crucial in improving lives and reducing poverty in the Global South. However, despite their progress, many social improvements remain weak and do not last. To truly enhance their impact and ensure lasting development, it is important for these NGOs to understand and adopt two key ideas: first, that economic growth is essential for sustainable social progress, and second, that the state plays a vital role in leading and maintaining development efforts. Instead of acting as temporary fixes for weak government bodies, NGOs should shift to becoming facilitators of long-term change, focusing on both economic empowerment and strengthening state capacities.

Economic growth as a foundation for sustained social progress

Economic growth is a key foundation for long-lasting social advancements. Financial growth allows governments to maintain public services such as education, healthcare, and clean water access. While external funding through Official Development Assistance (ODA) has made short-term improvements possible, it often does not guarantee sustained effects long-term. For instance, in Zambia, funding from ODA helped increase access to education, but when national finances became unstable, it resulted in budget cuts that harmed education quality (Source). Therefore, strong economic growth is crucial for maintaining social progress.

Moreover, economic growth helps create jobs, allowing families to escape poverty in a sustainable way. For example, BRAC in Bangladesh effectively combines microfinance with education and healthcare, proving that economic empowerment can lead to reduced poverty and better social outcomes (Source). There is also a beneficial cycle between economic growth and social development; investing in education and health enhances human potential and increases productivity. Rwanda, for instance, used ODA for reforms that led to a notable decrease in poverty rates according to the African Development Bank, showing how economic initiatives can support development strategies (Source).

Robust governance and equitable redistribution

Good governance and fair resource distribution are also crucial for social improvement. Poor governance can worsen inequalities, even in times of economic growth. Nigeria serves as an example where, according to the World Bank, despite being Africa's largest economy, poverty rates have risen (from 40.1% in 2018 to 56% in 2024) due to ineffective management and lack of wealth redistribution (Source). Conversely, Mauritius has successfully enacted inclusive policies that improved income distribution and reduced inequality, with its Gini coefficient dropping from 0.400 in 2017 to 0.304 in 2022 (Source).

Addressing corruption and strengthening institutions is necessary for real development, as corruption diverts funds from essential services. For example, Transparency International in Madagascar works to improve transparency in the extractive industries, helping local communities and promoting responsible resource practices (Source). 

From state substitution to state strengthening: a necessary shift for NGOs

NGOs must evolve from supplementing state functions to strengthening them. While they often fill gaps when governments have limited capacity, true long-term development requires robust state institutions. NGOs should support state capacity building through various means, such as providing technical assistance for local governments and integrating community health workers into public health frameworks.

As state capacities grow, NGOs should take on a complementary role. They can promote social innovation by testing new approaches that governments can later adopt. For instance, France's initiative to eliminate long-term unemployment started as an NGO project and became part of national policy (Source). Additionally, NGOs should focus on marginalised groups who are frequently overlooked in development efforts and facilitate conversations between communities and officials to improve accountability and governance quality. The Housing First Initiative in the USA demonstrated how the concept from the NGO Pathways to Housing in New York in the 1990s, providing immediate and unconditional permanent housing to highly vulnerable individuals, has been adopted by various U.S. states and federal agencies, including the Department of Housing and Urban Development (Source).

Embracing a new era of social development approach

In conclusion, development NGOs need to change from offering temporary social progress solutions to becoming long-term change makers. They must integrate economic growth and state strengthening into their primary focus. By shifting their approach to measure success through contributions to sustainable, inclusive development, they can empower local stakeholders to take charge of their prosperity. By working with governments and businesses, NGOs will help build resilient societies where development thrives through national capacity and resources, reducing dependence on external aid. This transformation is not merely a strategic adjustment—it is a moral imperative. The path to lasting prosperity lies in empowering nations to drive their own progress, with NGOs acting as enablers of that sovereign journey.

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