The credibility of transnational NGOs when virtue is not enough

The Credibility of Transnational NGOs We rely on NGOs to monitor the ethical practices of governments and for-proit i rms, and to undertake many humanitarian tasks that public and private actors will not While we are critical of public and private sector failures, we not relect enough on the credibility of the NGOs which take their place Can we be sure that products NGOs label as child-labor free are in fact so, that the coffee labeled as “fair trade” is farmed in sustainable ways, or that the working conditions monitored by NGOs are safe and that the wages are reasonable? Can we know that humanitarian organizations are, in fact, using our donations to alleviate human suffering rather than pursuing other goals? This book explores the problems of establishing the credibility of NGO activities as they monitor working conditions, human rights, and elections, and provide i nance through microcredit institutions, development aid, and emergency assistance p e t e r a g ou r e v i t c h is Distinguished Professor of Political Science and founding Dean of the School of International Relations and Paciic Studies at the University of California, San Diego dav i d a l a k e is Jerri-Ann and Gary E Jacobs Professor of Social Sciences, Distinguished Professor of Political Science, and (Acting) Dean of Social Sciences at the University of California, San Diego ja n ic e g ro s s s t e i n is Belzberg Professor of Conl ict Management in the Department of Political Science at the University of Toronto and the Director of the Munk School of Global Affairs at the University of Toronto The Credibility of Transnational NGOs When Virtue Is Not Enough Edited by P e t e r A G ou r e v i t c h Dav i d A L a k e Ja n ic e G ross S t e i n c a m br idge u n i v e rsi t y pr ess Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo, Delhi, Tokyo, Mexico City Cambridge University Press The Edinburgh Building, Cambridge CB2 8RU, UK Published in the United States of America by Cambridge University Press, New York www.cambridge.org Information on this title: www.cambridge.org/9781107651692 © Cambridge University Press 2012 This publication is in copyright Subject to statutory exception and to the provisions of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press First published 2012 Printed in the United Kingdom at the University Press, Cambridge A catalogue record for this publication is available from the British Library Library of Congress Cataloguing in Publication data The credibility of transnational NGOs : when virtue is not enough / [edited by] Peter A Gourevitch, David A Lake, Janice Gross Stein p cm Includes bibliographical references and index ISBN 978-1-107-01804-4 (hbk.) – ISBN 978-1-107-65169-2 (pbk.) Non-governmental organizations–Moral and ethical aspects I Gourevitch, Peter Alexis II Lake, David A., 1956– III Stein, Janice Gross IV Title: Credibility of transnational non-governmental organizations JZ4841.C73 2012 172′.4–dc23 2011040407 ISBN 978-1-107-01804-4 Hardback ISBN 978-1-107-65169-2 Paperback Cambridge University Press has no responsibility for the persistence or accuracy of URLs for external or third-party internet websites referred to in this publication, and does not guarantee that any content on such websites is, or will remain, accurate or appropriate Contents List of igures List of tables page vii viii List of contributors ix Acknowledgments x Introduction Beyond virtue: evaluating and enhancing the credibility of non-governmental organizations P E T E R A G O U R E V I T C H A N D DAV I D A L A K E Part I Monitoring and NGOs 35 Why believe international election monitors? SUSA N D H Y DE 37 Credible certiication of child labor free production 62 I R FA N N O O RU D D I N A N D S A R A H W I L S O N S O K H E Y Becoming a household name: how human rights NGOs establish credibility through organizational structure W E N DY H W O N G Part II Humanitarian NGOs Dilemmas of information and accountability: foreign aid donors and local development NGOs 86 113 115 CA R EW BOU LDI NG In defense of virtue: credibility, legitimacy dilemmas, and the case of Islamic Relief L AU R A T H AU T , J A N I C E G R O S S S T E I N , A N D 137 M IC H A EL BA R N ET T v Contents vi Monitoring repayment in online peer-to-peer lending 165 CR A IG MCI N TOSH Conclusion 191 Credibility and compromises PET ER A GOU R EV I TCH A N D 193 DAV I D A L A K E References 208 Index 222 Figures 2.1 Carter Center election observation and criticism 3.1 Bringing the state back in – state as regulator and NGO as whistleblower 7.1 Timing of lending, posting, and online funding through Kiva 7.2a Old Kiva website low chart 7.2b New Kiva website low chart 7.3 Flow chart of money and information in P2P lending 7.4 Impacts of P2P credit on MFI market access page 45 84 171 173 174 179 182 vii Tables 1.1 Sources of NGO credibility 3.1 Conditions for credibility in Rugmark/Goodweave, Kaleen, and the Foul Ball campaign 5.1 NGOs in Bolivia by sector and sub-sector, 2005 6.1 Strategies to enhance legitimacy 7.1 Repayment performance through Kiva versus overall, MFI level viii page 11 66 134 147 186 Contributors Michael Barnett is University Professor of Political Science and International Affairs at the George Washington University Carew Boulding is Assistant Professor of Political Science at the University of Colorado at Boulder Peter A Gourevitch is Distinguished Professor of Political Science and founding Dean of the School of International Relations and Paciic Studies at the University of California, San Diego Susan D Hyde is Assistant Professor of Political Science at Yale University David A Lake is the Jerri-Ann and Gary E Jacobs Professor of Social Sciences and Distinguished Professor of Political Science at the University of California, San Diego Craig McIntosh is Associate Professor of Economics in the School of International Relations and Paciic Studies at the University of California, San Diego Irfan Nooruddin is Associate Professor of Political Science at the Ohio State University Sarah Wilson Sokhey is Assistant Professor of Political Science at the University of Colorado at Boulder Janice Gross Stein is the Belzberg Professor of Conlict Management in the Department of Political Science and the Director of the Munk School of Global Affairs at the University of Toronto Laura Thaut is a Ph.D Candidate in Political Science at the University of Minnesota Wendy H Wong is Assistant Professor of Political Science at the University of Toronto ix Acknowledgments This book arose from a shared commitment to the importance of norm enforcement Governments and i rms fail to many important things, and non-governmental organizations around the world have stepped in to ill the breach While the public and private sectors are subject to criticism, often withering, NGOs generally not have to meet the same standards; evaluation is sympathetic and often uncritical How we really know that salmon is wild, that a soccer ball was made without child labor? How we monitor the quality of production processes (invisible in the i nal product), rather than the use value of the i nal, visible output? These questions blend into a wider set of theoretical concerns in international relations and comparative political economy, including the impact of global supply chains, the challenges of norm enforcement, and the role of non-state actors The authors discovered they shared these concerns at a chance meeting over coffee at the 2008 International Studies Association meeting in San Francisco among Janice Gross Stein, Peter Gourevitch, Susan Hyde, Carew Boulding, and Wendy Wong In making introductions, we became aware that we shared a common interest in an analysis of NGO efforts to monitor compliance with norms The opportunity to collaborate was visible and compelling Off we went, initially through the creative exchange of emails, memos, and drafts that modern technology makes possible We quickly drew in David Lake at UC San Diego, where Hyde, Boulding, and Wong had recently inished doctorates on topics of importance to our themes We then added Michael Barnett, working with Stein on Islamic charities, and his student Laura Thaut We involved Irfan Nooruddin, whose work on child labor was familiar to several of us, and he drew in his student Sarah Sokhey In September 2008 we held a planning meeting at the Munk School of Global Affairs at the University of Toronto where we sketched ideas for further work We held a larger workshop at UC San Diego x 220 References Politics: Agency, Power, and Governance Ithaca, NY: Cornell University Press, 151–72 Stiglitz , J 1990 “Peer Monitoring and Credit Markets,” World Bank Economic Review 4: 351–66 Terry, Fiona 2003 Condemned to Repeat? Ithaca, NY: Cornell University Press Turnbull, N 1999 Internal Control: Guidance for Directors on the Combined Code London: The Institute of Chartered Accountants in England and Wales VIPFE 2006 Directorio Nacional de ONGs en Bolivia, 2005–2006: Registro Unico Nacional de ONGs La Paz: Viceministerio de Inversión Pública y Financiamiento Externo, Republica de Bolivia, Ministerio de Hacienda Available at www.vipfe.gov.bo/ryp/ongs/ Vogel, David 2005 The Market for Virtue: The Potential and Limits of Corporate Social Responsibility Washington, DC: Brookings Institution Press Walker, S D 2009 Review of Corporate Governance in UK Banks and Other Financial Industry Executives London: Paradigm Risk, Ltd Walter, Barbara F 1997 “The Critical Barrier to Civil War Settlement,” International Organization 51 (3): 335 –64 2002 Committing to Peace: The Successful Settlement of Civil Wars Princeton University Press Weiner, Myron 1991 The Child and the State in India Princeton University Press Werker, Eric and Ahmed, Faisal Z 2008 “What Do Nongovernmental Organizations Do?” The Journal of Economic Perspectives 22: 73 –92 Willcox, David 2005 Propaganda, the Press, and Conlict: The Gulf War and Kosovo New York: Routledge Wilson, Richard A 1997 “Human Rights, Culture and Context: An Introduction,” in Richard A Wilson (ed.) Human Rights, Culture, and Context: Anthropological Perspectives London: Pluto Press Winston, Morton E 2001 “Assessing the Effectiveness of International Human Rights NGOs,” in Claude E Welch, Jr (ed.) NGOs and Human Rights: Promise and Performance Philadelphia: University of Pennsylvania Press Wiseberg, Laurie S and Scoble, Harry M 1977 “The International League for Human Rights: The Strategy of a Human Rights NGO,” Georgia Journal of International and Comparative Law 7: 289 –313 Wong, Wendy 2008 “Centralizing Principles: How Amnesty International Shaped Human Rights Politics Through Its Transnational Network.” Ph.D diss., University of California, San Diego References 221 2009 “Becoming a Household Name: Establishing the Credibility of Human Rights NGOs.” Paper prepared for presentation at the 2009 Annual Meeting of the American Political Science Association, Toronto, Canada, September 2–6 Wydick, B 1999 The Effect of Microenterprise Lending on Child Schooling in Guatemala Economic Development and Cultural Change 47 (4): 853 –69 Young, O R 1967 The Intermediaries: Third Parties in International Crises Princeton University Press Zutshi, Bupinder 2008 “Globalisation and Child Labour Linkages in India: A Case Study of Carpet and the Garment/Apparel Industry,” in Bupinder Zutshi and Kailash Satyarthi (eds.) Globalisation, Development, and Child Labour Delhi: Shipra Publications Index 9/11 terror attacks, 14, 151–3, 195 Abbott, Kenneth W., Abrams, Elliot, 89 Abuarqub, Mamoun, 153 access crucial to social change, 195 to electoral process and reports, 49–50, 51 to manufacturing facilities, 197 Adams, Jerry, 127 Adidas, 62 , 75 Africa, human rights in, 108 agenda-setting in Amnesty International, 106–7, 109 in HRW, 107–9, 110–11 methods, and credibility, 91, 94, 105, 108–9, 110–11 Africa Watch, 99, 108 Ahmed, Faisal Z., 119, 122 Albright, Madeline, 55 All India Carpet Manufacturers Association, 69 Allison, Graham T., 13 Alterman, Jon B., 157, 161 Amengual, Matthew, 74 American Civil Liberties Union, 96 Americas Watch, 92 , 99, 102 , 108 Amnesty International agenda-setting in, 106–7, 109 Brenson’s relationship with British intelligence, 198 credibility as perceived by people with common interests, 14 credibility compared to HRW, 95–6, 194, 195 funding sources, 104–5 history, 94, 98–9 human rights monitoring, 222 information products, 93, 109, 110–11 membership, 98–101 structure relects goals and strategies, 99, 103–4, 110–11, 202 worldwide audience, 201 Anheier, Helmut K., Annan, Koi , 55 Arab states, humanitarian aid grants, 153, 155 Asia Watch, 99, 108 Asian Network for Free Elections, 37 Aspers, Patrik, Asset4, 204 Association for the Protection of Children, 70 audiences and common interests, 14–15, 194, 195 and costly effort, 16 for election monitors, 43 for human rights NGOs, 87–8, 89–90, 95 for humanitarian aid NGOs, 119–20, 121, 139–40, 142 , 143–5, 149 and perceived credibility of NGOs, 4, 10, 14, 23–8, 195 and perceived legitimacy of NGOs, 139–42 , 143–5, 149, 161–2 and perceived virtue of NGOs, 11–12 shifted by need for credibility, 201 Auld, Graeme, 49 Baccaro, Lucio, 206 Bachman, S L., 68, 73 Bachpan Bachao Andolan, 76 Baland, Jean-Marie, 75 Index Baldwin, Roger, 96 Banerjee, A., 165, 175 Barnett, Michael, 4, 7, 13, 142 , 148 Baron, David, Basu, Arnab K., 75 Beckert, Jens, Beeman, Mark, 68, 69, 70 Belarus elections, 56 Belgium, rug imports, 70 Bellion-Jourdan, Jérôme, 150 Benenson, Peter, 98, 100, 104 Ben-Ner, Avner, Benthall, Jonathan, 157 Berenson, Peter, 198 Besley, T., 174, 176 Biersteker, Thomas J., Bjornlund, Eric, 51 Bob, Clifford, 4, 12 , 23, 96, 130, 131, 133 Boje, David M., 77 Bolivia local communities vs NGO donors, 129–30, 201 local NGOs’ professionalization, 115, 132–3, 194 Bonded Labor Liberation Front (BLLF), 69 bonding, personal and appeal of P2P, 167, 188 increases credibility, 18–19, 193, 199 borrowers credit ratings, 165 in Kiva system, 167–8, 169, 180–3, 188 in MFIs, 180–2 in P2P, 165–6 branding, and NGO reputation, 198 Brause, Alberto, 204 Bread for the World, 70 Brewington, David V., 87 Broukhim, Michael, 65, 75, 81 Brown, Cynthia, 102 , 108 Bruett, Tilman, 165 Buckmaster, N., 127 Bullock, Alan, 206 bureaucratization of NGOs, 13, 202 Burra, Neera, 69 223 Bush, George H.W., 110 Cadbury, A., 206 Cameroon elections, 46 Campaign Against Child Labor, 70 Canada, humanitarian aid grants, 144 CARE, 7, 115, 199 Care and Fair, 68 Carey, Sabine C., 96 Carothers, Thomas, 39 Carpet Export Promotion Council, 69, 73 Carpet Manufacturers Without Child Labor, 69 Carter Center activities, 43–4 as cited author in this book, 37, 55 competition and collaboration with other NGOs, 194 credibility, 43–5, 48, 50, 51, 53 founded, 44 governance structure, 55 monitoring of controversial elections, 6–7, 44 role in election monitoring best practices, 54 transparency, 57, 58 Carter, Jimmy, 44, 51, 55 Carter, Rosalynn, 44 Catholic Overseas Development Agency, 158 CBS, 75 Center for Global Development, 166, 168 Center for Media and Democracy in Pakistan, 47 Central America, human rights in, 102 certiication (humanitarian aid), 124–5 certiication (manufacturing) credibility of, 63–4, 72 , 74–5, 81–5 NGO role in, 6, 8, 63, 72 , 73, 80, 84–5 Charity Navigator as cited author in this text, 82 evaluation criteria, 20, 128, 200 value of, 143 224 Charlish, D., 127 Chau, Nancy H., 75 Chavez, Hugo, 48, 58 Chen Shui-bian, 97 child labor credibility of NGO monitors, 64, 81–5, 197 interaction between NGOs and governments, 206 meaning of, NGO role in preventing, 194 prevented through ethical standards, in rug industry, 62 , 65, 68–70, 73, 83 in soccer ball industry, 62 , 65, 75–81 China as member of SCO, 53 election monitoring, 56 Islamic Relief’s entry to, 155 organic products, Chowdry, Geeta, 68, 69, 70 Christian Aid, 158 Cingranelli, David L., 96 Clark, Ann Marie, 96 Clark, Roger S., 97 Cmiel, Kenneth, 106 Coate, S., 174, 176 Code of Conduct for International Election Observers, 54 common interests, see also values, shared and autonomous governance of NGOs, 19 between certiication NGOs and consumers/retailers, 71, 72 , 73 between election monitors and audience, 37, 46–8 between human rights NGOs and audiences, 90 between Islamic Relief and audiences, 162 between local development NGOs and donors, 121 as perceived by different audiences, 14–15, 194, 195 as source of credibility, 14–15, 194, 199 Commonwealth of Independent States, 40, 45, 50, 56 Index Commonwealth Secretariat, 60 community of NGOs integration of election observer organizations, 37, 54–5 integration to increase credibility, 21–2 , 154–6, 157–8 Conning, J., 176 Conroy, Michael, 8, 63 Convention on the Rights of a Child, 68 Cooley, Alexander, 4, 12 , 120 Cooper, Andrew F., 57 corporations exploitative working conditions, 62–3 working with Rugmark, 70 costly effort by election monitor or target, 37, 42–3, 48–9, 58–9 by human rights NGOs, 90 by humanitarian NGOs, 121, 132 , 149, 162 as perceived by different audiences, 16 in product certiication, 71 as source of credibility, 15–16, 22–3, 196–7, 199 as source of legitimacy, 146 credibility (of NGOs) and audiences, 4, 10, 23–8, 194 in certiication of manufacturing, 63–4, 71–2 , 78–85 complicated by chains of delegation, 204 consequences of need for, 200–3 distinct from legitimacy, 138 in election monitoring, 37, 42–3, 45–59, 60–1 factors in, 4–5 in human rights monitoring, 86–7, 88–92 in humanitarian aid, 116–17, 120–1, 122–5, 133–6, 137–8, 142 link with virtue, 3–4 and NGO relationship with governments, 205, 207 maintaining, and effect on mission, Index and social change effectiveness, 6, 9–10, 29, 193, 207 sources, external, 13–14, 194–8 sources, internal, 12 , 87–8, 92–5, 109–11 strategies to increase, 18–23, 29–30 credit bureaus, 165, 175, 179 credit markets credibility problem well-dei ned, 165 and fall in costs of capital, 180–2 credit ratings, 165, 175–6 Cutler, A Claire, Cyclone Nargis, 24–5 Dalton, Matthew, 96 David, R., 127 Daviron, Benoit, Davis, David R., 87 de Cordier, Bruno, 150, 153, 157 de Janvry, Alain, 175, 176 de Waal, Alex, 146 Declaration of Principles for International Election Observation, 54 democracy beneits contingent on, 38, 40, 42–3 dificulty of evaluating, 38, 41, 42 democracy promoters goals, 38 motivations, 38 rewards or punishments from, 40, 41–3 targets of, 38, 42 variety of, 41 Democratic Republic of Congo elections, 44 democratic states “fake”, and elections, 38, 41, 42–3, 51–2 as homes to NGOs, 196 role in election monitoring, 206 and turnovers in power, 42 democratizing states dificulties in evaluating, 38, 41, 42 election monitoring by Carter Center, 44 signals of credibility, 42 , 48–50, 51 Des Forges, Alison, 96 developing countries 225 credit screening for, 176–7 election monitoring, 38 MFI loan repayments, 178 development assistance hindered by need for credibility, 201 through MFIs, 175 NGO role in, 5, 207 Development Finance listserve, 170 donors to NGOs accountability to, 131, 144–6, 200–1 as audience, 26–7, 195, 203 as election monitor audience/ targets, 43, 46–7, 53, 55 and excusable misrepresentations, 199 as human rights NGO audience, 90 as humanitarian aid donors/ audience, 119, 125–8, 148, 152–3 pressure from, 119, 131, 142 , 200 Dorigny, Marie, 75 Dulo, E., 165, 175 Duprez, Cedric, 75 Easterly, William, 124, 126 Ebrahim, Alnoor, 131, 201, 203 Ecuador, foreign aid to, 130, 131 election monitors audiences for, 43 best practices, 54–5, 60 credibility of, 15, 196–7 domestic, 40, 43, 46–7 factors that undermine credibility, 46–8 governance structures, 37, 48, 55–7 NGO competition and collaboration, 194 sources of credibility, 37, 42–3, 54, 60–1 strategies to increase credibility, 37, 54–9, 60–1 variety of, 40, 59 elections and credibility of NGO monitors, 37, 39, 40, 43 democratic, dificulty of assessing, 39, 40, 42 , 53 226 elections (cont.) democratic, standards for, 8, 37, 42 , 49–50, 54–5 importance of access provided by targets, 195 increase in international monitoring of, 38, 41, 59 monitoring supported by democratic governments, 206 NGO competition and collaboration in monitoring, 37, 38–60 NGO role in monitoring, 6–7, sources of credible reports on, 39, 60 transparency of observation methods and funding, 37, 48, 57–8 voter registration audits, 48 Electoral Institute of Southern Africa, 37 Elliott, Kimberly Ann, 7, 20, 205 employees of NGOs and NGOs that stray from mission, 196 salaries, 16, 198 Epstein, David, 26 Equifax, 176 ethical behavior, see also social change monitored by NGOs, 6–7, 63 public vs private standards regulating, 8, 9, 195 ethical consumption, see also products as means to improve human welfare, 6, 63–4 certiication payments, 27 consumer guides to, 203–4 and labeling, 9, 71, 73, 74–5, 79, 81 private standards regulating, 8, 9, 195 role of media, 196 and view of industry-funded NGO monitors, 15 ethical manufacturing certiication of, 8, 63, 70, 72 , 81–5 importance of access provided by targets, 195 NGO role in monitoring, 6, 8, 63 Index ethics tension with proit, 19, 194 European Commission, 158 European Commission Humanitarian Organization, 144, 158 European Council of Senior Scholars, 160 European Union election monitoring groups, 40, 45, 50, 58, 132 humanitarian aid grants, 115 rules on product information, 204 Experian, 176 Fair Labor Association (FLA), 8, 20, 201 fair trade groups monitoring of, 6, promote personal bonding, 19, 199 promote school-building, 202 Federal Association of Oriental Carpet Importers, 70 Fédération Internationale de Football Association (FIFA), 76 i nances of NGOs diversiication of, 195 funding mechanisms, and credibility, 90–1, 93–4, 104, 105, 111 and pressure from funders, 200 transparency in, 18, 200 Finnemore, Martha, 6, 13 Fisher, Ronald J., 91 Flanigan, Shawn, 152 Flannery, Matt as cited author in this book, 165 response to Roodman’s blog, 170–2 , 174 FLOCERT, 27 FLO-International, 27 Ford Foundation, 93, 104–5 foreign aid, see humanitarian aid ForeignAid Ratings, 82 , 124–5 Foresti, M., 127 Foul Ball campaign initiated, 76 lack of credibility, 63–4, 65, 76, 78–81 Fowler, Alan, 127 France, terrorist acts in, 153 Index Freeman, Richard Barry, 7, 20, 205 Fujimori, Alberto, 56 Fung, Archon, 206 Gandhi, Jennifer, 52 Gates Foundation, 26 Gates, Bill, 26 Gates, Melinda, 26 gay rights, 101, 107 Geisler, Gisela, 39, 60 Gelman, Sheldon R., 4, 13 Gerefi , Gary, 204 German Trade Association, 70 German, Tony, 144 Germany, consumer awareness campaign, 70 Ghatak, M., 174, 176 Gibelman, Margaret, 4, 13 Gibney, Mark, 96 Gleditsch, Kristian Skrede, 49 Glennerster, R., 165, 175 Gonzalez-Vega, C., 165 Gore, Al, 12 governance of NGOs, see also organizational structures autonomy in, 19–20, 193 effect of membership on, 93 election monitors, 37, 48, 55–7 human rights NGOs, 90–1 governments accuracy of information from, 89 and certiication NGOs, 73–4, 84–5 as election monitor audience/ targets, 43, 48–50, 51–2 election monitor separation from, 55–8 NGO separation from, 205 role in labor standards, 64, 82–5 symbiotic relationship with NGOs, 206–7 as targets of NGO campaigns, 205 Gray, Bradford H., 19 Grote, Ulrike, 75 Gugerty, Mary Kay, 4, 18, 22 , 26 Guinanne, T., 174 Gulbrandsen, Lars H., 49 Habyarimana, James, 12 Hafner-Burton, Emilie M., 96 227 Haiti earthquake, 82 Hall, Rodney Bruce, Hammond, Laura, 157, 158 Hansen, Hans Krause, Hansmann, Henry B., 89 Hany, Bana, al-, 150, 155, 156, 157 Harlow, Rachel Martin, 110 Hauler, Virginia, Held, David, Helsinki Watch, 89, 95, 99, 104 Henderson, Sarah, 130 Henderson, Sarah L., 23 Hilhorst, D., 127 Hiscox, Michael, 9, 41 Hiscox, Michael J., 65, 75, 81 homosexual rights, 101, 107 Hopgood, Stephen, 96, 106 Howell, Jude, 124 human rights NGO role in monitoring, 6–7, 8, 194 sources of information on, 89, 93, 94–5, 110–11 human rights organizations accuracy crucial to, 87, 89, 109–10, 197–8 audiences for, 87–8, 89–90, 95 bureaucratization as negative factor in, 13 history, 96–9 information products, 93, 94–5, 108–9, 110–11 political/moral biases in, 91, 109–10 promote personal bonding, 19 sources of credibility, 86–8, 89–91, 109–11 virtue of, 86, 88 Human Rights Watch (HRW) agenda-setting in, 107–9 credibility compared to Amnesty International, 95–6, 194, 195 funding sources, 104–5 history, 98–9 information products, 93, 109, 110–11 membership, 101–3 structure relects goals and strategies, 99, 103–4, 109–11, 202 228 humanitarian aid donors and recipients, dei ned, 117–19 ethical basis of, 137, 141 ethical imperative for speed, 121–2 foreign reliance on local NGOs, 116–28 growth of, 144 long-term vs immediate goals, 130 NGO role in dei ning, via local development NGOs, 3, 5–6, 115–16, 121–2 , 207 via MFIs, 165 humanitarian NGOs audiences for, 119–20, 121, 139–40, 142 , 143–9 chains of delegation, 115, 118, 203 codes of conduct, 146–8 dependence on governments, 206 impact studies on aid, 21 legitimacy challenges, 137, 141–6 legitimacy of, 138–40, 162–4 political/moral biases in, 142–3 reporting requirements, 146 response to loss of legitimacy, 137–8, 146–8 use of local NGOs, 203 Humphrey, John, 204 Humphreys, Macartan, 12 Hunter, Shireen, 157, 161 Husselbee, David, 77, 79 Hyde, Susan D., 8, 24, 38, 49 impact analyses, 21, 200–1 India election monitoring, 56 rug industry, 64, 68–9, 72–3, 74 Indo-German Export Promotion Council, 70 Innovest, 204 International Foundation for Electoral Systems (IFES), 47 International Helsinki Federation for Human Rights, 99, 104 International Labor Organization (ILO), 76, 77–8, 79, 80 International Labor Rights Forum (ILRF), 78, 79 Index International League of Human Rights (ILHR), 96–8 International Monitoring Association for Child Labor (IMAC), 78 international organizations (IGOs) democracy/democratic elections as condition of membership, 41, 44, 56 reports dificult to access, 50 role in labor standards, 84 International Red Cross and Red Crescent Movement, 146–7 International Republican Institute (IRI), 37, 47 International Rescue Committee, Iraq elections, 48 US invasion of, 110 Ireland, funding of Carter Center, 57 Islamic Relief beneits/costs of Western legitimacy, 156–61, 163–4 credibility undermined by 9/11, 4, 14, 195 emphasis on transparency, 150, 153–4, 155–6, 157, 162–3, 200 founding, and moral basis, 150, 157 “morally suspect” to Western audiences, 151–3 professionalization in response to challenged virtue, 156, 162–3, 194 standard procedures increase credibility, 21 torn between different audiences, 14, 149–50, 159–61, 201 Israel, human rights in, 107 Japan, humanitarian aid grants, 144 Jappelli, Tullio, 175 Kahler, Miles, Kaleen credibility compared to Rugmark, 63, 65, 71, 73–5, 82 , 194 founded, 73 Karlan, D., 165, 175 Karpik, Lucien, Kazakhstan Index elections, 50 as member of SCO, 53 Keck, Margaret E., 5, 28, 87, 131 Kelley, Judith, 38, 40 Kendall, Jeremy, 127 Kennedy, David, 12 , 13 Khan, Ajaz Ahmed, 150, 153, 159, 160, 161 Khan, Farzad R., 77, 78 Kiewiet, D Roderick, 26 Kinnan, C., 4, 165 Kirmani, Nida, 150 Kiva aid total and growth since founding, 7, 166, 177, 188 chain of delegation, 178, 187, 188–9, 203 client selection, 167–8, 169, 176–83, 187, 188 i nancial credibility, 166, 187 humanitarian credibility questioned, 166, 187, 189 lending and borrowing process, 17, 165–7, 187 promotes personal bonding, 19, 167, 199 redirection of credit, 167, 184–5 relationship with MFIs, 166–7, 169, 172 , 173–4, 177–8, 180, 187 response to allegation of misrepresentation, 4, 17, 166, 168, 172–4, 196, 199 timing of loans, 166–7, 168–74, 180, 187, 198–9 KLD, 204 Knapp, Martin, 127 Knight, L.-A., 127 Kydd, Andrew, 91 Kyrgyzstan, as member of SCO, 53 Laber, Jeri, 89, 92 , 102 , 103, 104 labor standards government role, 64, 82–5 interaction of NGOs and governments, 206 in soccer ball industry, 76 NGO role in monitoring, 63, 83–5 Laidler-Kylander, Nathalie, 17 Lake, David A., 8, 14 229 Latin American Studies Association, 40 legitimacy (in humanitarian sector), see also virtue (of NGOs) and audiences, 139–40, 142 , 143–5, 149, 161–2 challenges to, 137–46 elements of, 11–12 , 138–40, 161 response to loss of, 137–8, 146–8 strategies to enhance, 146, 162–3 Legler, Thomas, 57 lenders credit ratings, 165 in Kiva system, 167–8 in P2P, 165–6 local development NGOs credibility of, dificulty of evaluating, 16, 17–18, 116–17, 120–1, 122–36, 201 credibility of, implications for donors, 120, 125–8 credibility of, importance of evaluating, 119, 120–2 , 129–32 , 136 dei ned, 118 professionalization of, 117, 129, 132–3, 194 as recipients of foreign aid, 115–16 types, 118, 122 Locke, Richard, 20, 74, 206 Luoto, J., 175 Lupia, Arthur, 11, 12 , 14 Luxembourg, rug imports, 70 Lyne, Mona, 26 MacArthur Foundation, 105 Macrae, Joanna, 144, 145 malfeasance uncovered by media, 195 uncovered by other NGOs, 196 undermines credibility, Mangla, Akshay, 74 manufacturing, ethical, see ethical manufacturing Mattel, 198 Maury, Ram Achal, 72 MAXIMA, 169 McClintock, Brent, 65, 71 230 McCubbins, Mathew D., 11, 12 , 14, 26 McDermott, Constance, 49 McDonagh, Pierre, 70 McFaul, Michael, 38 McGrew, Anthony, McIntosh, C., 175, 176 McNollgast, 26 media as election monitor audience, 44, 46–7, 48 as external veriier, 54, 195–6 reports on child labor, 62–76 membership in Amnesty International, 100–1 in HRW, 101–3 types, and credibility, 90, 92–3, 95, 99–100, 103–4, 110 Meyer, Carrie A., 119, 130, 132 Microi nance Information Exchange (MIX), 177 microi nance institutions (MFIs) credit screening, 176–7 funding sources, 175 humanitarian objectives, 175 Kiva’s scoring system, 167, 177–8, 187 loan defaults, 183–5 loan repayments, 174, 178–80, 187 modest impact, 175 proitability, 180–3 relationship with P2Ps, 178–80 social and i nancial credibility needed, 165 Middle East Watch, 99 MIFEX, 178 Minear, Larry, 145 misrepresentation excusable degree of, 199 penalties for, against election monitors, 37, 52–4 penalties for, against human rights NGOs, 90 penalties for, against humanitarian NGOs, 121 penalties for, as source of credibility, 16–17, 197–8, 199 penalties for, in product certiication, 71, 72 , 73–4 Misreror, 70 Index Mitchell, Shannon, 19 Mitre, 62 , 75 MIX (Microi nance Information Exchange), 177 MixMarket, 184 Morduch, J., 174 Munir, Kamal A., 78 Murdie, Amanda, 87 Muslim Charities Forum, 155 Muslims and founding of Islamic Relief, 150–1 as Islamic Relief donors, 149, 152–3, 157, 159–60, 163 as Islamic Relief staff/volunteers, 150–2 Myanmar Cyclone Nargis, 24–5 elections, 56 Myers, Marissa, 91 Naidoo, Kumi, 13 National Democratic Institute (NDI), 37, 47, 54 National Endowment for Democracy, 58 natural disasters government reliance on NGOs to deliver aid, 207 NGO codes of conduct, 147–8 Navajas, Sergio, 176 Neier, Aryeh, 89, 91, 92 , 96, 101–2 , 103, 107–8 Nepal, labor monitoring in, 70 Netherlands, rug imports, 70 Newens, M., 127 NGOs in Disaster Relief, 148 Nielson, Daniel L., 26 Nike, 20, 198 non-governmental organizations (NGOs) as audience of other NGOs, 20, 28 categories of, centralization of, 30, 94, 109, 111, 198 chains of delegation, 203–4 development projects, humanitariaan activities, 3, long-term vs immediate goals, 201 Index monitoring activities (ethical behavior), 3, 5–8, 63 monitoring of, 200–1 monitoring of each other, 43, 196 nonproit, 19, 194 relationship with governments, 206–7 reported malfeasance, undermining credibility, 4, 196, 197 Noriega, Manuel, 51 North Korea, election monitoring, 56 O’Halloran, Sharyn, 26 Omaar, Rakiya, 108 O’Neill, Michael, 13 Open Society Institute, 93 Orbinski, James, 141 Organization for Security and Co-operation in Europe (OSCE) conditions of membership, 44 credibility, 45, 56 funding, 58 governance, 57 Ofice for Democratic Institutions and Human Rights (ODIHR), 40, 50, 56, 57 Organization of American States, 44, 45, 50, 56–7 organizational structure, see also governance of NGOs dei ned, 87 formal and informal aspects, 92 and NGO growth, 12–13 as source of credibility, 87–8, 90–1, 92–5, 99–100, 103–4, 105, 108–11 as source of legitimacy, 143 O’Rourke, Dara, 203, 206 Ostrom, Elinor, 12 Padilla, Jorge A., 175 Pagano, Marco, 175 Pakistan earthquake, 150 elections, 46 labor monitoring in, 70 soccer ball industry, 62 , 75, 77 Panama elections, 51 Pearce, Jenny, 124 231 Peer-to-Peer microi nance (P2P) client selection, 181–3, 188 credibility issues, 166–7 credit screening in developed countries, 175–7, 179 default and delinquency rates, 177 i nancial or humanitarian?, 187 how it works, 165–6, 185 humanitarian credibility, 188 loan defaults, 183–4, 185 People In Aid, 148 Peru elections, 56–7 Phillips, Ann L., 157, 161 Poe, Steven C., 96 Polman, Linda, 142 Ponte, Stefano, Porter, Tony, Posner, Daniel, Power, Samantha, 96 Prakash, Aseem, 4, 18, 22 , 26 Private Voluntary Aid, 117 PROCOSI, 115, 125, 132–3 products, see also ethical consumption ethically produced, 6, safety of, 198, 205 professionalization of election monitors, 37, 54–5 to increase credibility, 21, 194, 197 of local development NGOs, 117, 129, 132–3 proit tension with ethics, 19, 194 Prosper.com, 176, 177 Przeworski, Adam, 52 public as election monitor audience, 43 as human rights NGO audience, 90 as NGO audience, 27–8 Qaradani, Yussuf, 160 Qin, Fei, 206 Quelch, John A., 17 Rabben, Linda, 96 Ramos, Howard, 96 Randel, Judith, 144 232 Raustiala, Kal, 206 Ravi, Aparna, 70 Ray, Philip L., Jr., 97 Reagan, Ronald, 92 , 102 Reebok, 62 , 75, 78 Richards, David L., 96 Riddell, Roger, 127 Risk Metricks, 204 Robinson, Mary, 97 Rodgers, Kathleen, 96 Romis, Monica, 20 Ron, James, 4, 12 , 96, 120 Roodman, David, 166, 168–70, 173 Rosenau, James, 96 Roth, Kenneth, 102–3 rug industry child labor in, 62t, 65, 68–70, 83 credibility of NGO monitors, 197 in India, 64, 72–3 relative credibility of certiication, 63, 65, 73–5 Rugmark (later Goodweave) as cited author in this book, 83 costly efforts to increase credibility, 22 , 194, 197 credibility compared to Kaleen, 63, 65, 71, 73–5, 194 credibility success and criticisms, 71–2 , 81, 82 , 83 founded, 70 humanitarian activities, 70, 71 market share, monitoring and certiication activities, 6, 27, 68–70 Russia as member of SCO, 53 foreign aid to, 130 funding of election monitors, 56 human rights in, 98–9 Rwanda, genocide in, 96 Sabel, Charles, 206 Sadoulet, E., 165 Safemilk, 204 Sagan, Ginetta, 104 salaries, of NGO leaders and staff, 16, 198 Salih, M.A Mohamed, 152 Salskov-Iversen, Dorte, Satyarthi, Kailash, 70, 76 Index Save the Children aid activities, 7, 115 child labor free project, 77, 79 Schanberg, Sydney, 75 Schlesinger, Mark, 19 Scoble, Harry M., 97 Seidman, Gay W., 62 , 63, 64, 72 , 81 Sell, Susan K., Shanghai Cooperation Organization (SCO), 40, 50–1, 53 Sharma, Alakh, 68, 74, 81 Sialkot Child Labor Elimination Project initiated, 76 lack of credibility, 78–81 relative success of, 77–8 Siegman, Karin Astrid, 77 Sierra Club, 26 Sikkink, Kathryn, 5, 6, 28, 87, 131 Simmons, P.J., 13, 30 Simon, Herbert A., 13 Singer, Peter, 143 Sives, Amanda, 60 Slim, Hugo, 145 Smilie, Ian, 145 Smyth, Nicholas F B., 9, 41 Snidal, Duncan, soccer ball industry child labor in, 62 , 65, 73–81 credibility of NGO monitors, 197 relative lack of credibility of certiication, 63–4, 65 social change, see also targets of social change, see also ethical behavior credibility vital to, 3–10, 29, 193, 200, 203 Soros, George, 93 South Asia 2004 tsunami, 150 child labor in, 62 , 65, 68–9 South Asian Coalition of Child Servitude (SAACS), 69 Soviet Union, human rights in, 89, 98–9 Spar, Debora L., 63 Sphere Project, 147, 155 Stein, Janice Gross, 89, 145 STEP, 65, 68 Index Stiglitz, J., 176 Sturgeon, Timothy, 204 Sweden, rug imports, 70 Switzerland, rug imports, 70 Syria, human rights in, 107 Tahmazov, Ismayil, 153 Tajikistan, as member of SCO, 53 targets of humanitarian aid relationship with local NGOs, 119, 121–2 , 129–32 , 149 targets of social change, see also social change as donors, 27 as election monitor audience, 43 as human rights NGO audience, 90 as NGO audience, 23–5, 195 signals of credibility, 42 , 48–9 Taylor, J Sherrod, 97 Terre des Hommes, 70 Terry, Fiona, 141, 143 Tierney, Michael J., 26 Toyota recalls and reputation, 198 supply chain, 203, 204 TransFair USA, 6, 22 transparency effect on NGOs, 200–1 of election observation methods and funding, 37, 48, 57–8 as source of credibility, 20–1, 194, 196 TransUnion, 176 Turkey, human rights reports, 89 Turnbull, N., 206 Umbro, 62 , 75, 78 UNHCR, 140 UNICEF, 72 , 77, 79 United Kingdom Disaster Emergencies Committee, 147–8, 155 environmental and human rights standards, 205 funding of Carter Center, 57 humanitarian aid grants, 144, 158, 160 rug imports, 70 United Nations 233 human rights principles, resolution on rug labeling, 70 role in election monitoring best practices, 54 United States credibility of democracy promoting NGOs, 47–8 credibility of human rights NGOs, 89 credit reporting in P2P, 176 election monitoring in, 49 funding of Carter Center, 57 funding of democracy promoters, 47–8, 57–8 and human rights NGOs, 103 humanitarian aid grants, 115, 144, 157 invasion of Iraq, 110 rug imports, 70 rules on product information, 204 USAID, 58, 118, 125, 130, 131, 132–3 Uzbekistan elections, 56 as member of SCO, 53 values, shared, see also common interests election monitor best practices, 37, 54–5 in human rights arena, 91 promoting bonds around, to increase credibility, 18–19, 193 van Eekelen, Willem, 160, 161 Vasquez, Tanya C., 96 Venezuela elections, 48, 58 veriication, external of election monitors, 37, 43, 54 of human rights NGOs, 90 and increased transparency, 20, 196 of local development NGOs, 121, 124 as NGO audience, 28–9 of product certiication NGOs, 72 , 74, 79, 80, 81–2 as source of credibility, 17–18, 82 , 195–6, 199 Vietnam, election monitoring, 56 234 virtue (of individuals) elements of, 139 link with common interests, 14–15 in NGOs, 12 undermined by moral lapse, 12 virtue (of NGOs), see also legitimacy (in humanitarian sector) challenges to, 4–5 communicating, 194 elements of, 139 as perceived by audience, 11–12 as source of credibility, 3–4, 11–13, 29–30, 137–8, 161, 193 undermined by growth of organization, 12–13 undermined by moral lapses, 12 Vogel, David, Walker, James, 12 Walker, S D., 206 WalMart ethical product sourcing, Walter, Barbara F., 91 Index Weiner, Myron, 68, 83 Weinstein, Jeremy, Weiss, Thomas G., 142 Werker, Eric, 119, 122 Willcox, David, 110 Willmott, Hugh, 74 Wilson, Richard A., 86 Winston, Morton E., 86 Wiseberg, Laurie S., 97 women’s rights, 108 Wong, Wendy, 85, 198 Worker’s Rights Consortium (WRC), founded, 20 World Bank, 118 World Food Program, 158 World Vision, 7, 139–40 Wydick, B., 175, 176 Young, Andrew, 20 Young, O R., 91 Zimbabwe elections, 45 Zinman, J., 165, 175 Zutshi, Bhupinder, 76, 78 ... with the practices of other similar NGOs (Chapter 6) When virtue is not suficient, NGOs turn to other mechanisms to enhance their credibility They are not passive actors who take their virtue. .. shapers of how they are perceived by others Our central question, then, is when, why, how, and to whom NGOs make themselves credible when virtue alone is not enough? In this volume we examine the issue... Both of these were made easier because of the central importance of the topic: the sense among all three of us that virtue is not enough, that transnational organizations which monitor the public