22

Sa-Dhan Patrika

Volume 6

Issue 1

and non-bureaucratic internal self-

that change and subsequent

control systems are applied within

transformation will have a lasting

the partner organisations and that

effect and will put women and men,

the quality of external control

those who are finally concerned, at

As a bilateral

( a u d i t s ) is improved and goes

the core of every intervention.

donor, it sees its

beyond the normal statutory audits.

role as a

For this, donors for instance would

All the above mentioned points, in one

facilitator in

have to invest in training specialised

way or the other, form part of HID

linking the formal

development auditors.

approaches. These approaches are

and the informal

e.

Promote capacity development

meant to enhance awareness as well

financial system,

within organisations: Development

as to improve effectiveness and

promoting pro-

organisations in India function within

conducive organisational development

poor innovations

(internal governance). See Figure. Since

a complex and dynamic system.

and promoting

They need to constantly strategise

change only happens when people

empowering

and reorient (if required) their work

c h a n g e  their  behaviour  ­  and

behaviour through

to be responsive in this dynamic

d e v e l o p m e n t as well as improved

capacity building

environment.  This  demands

g o v e r n a n c e  means  change  ­

in human and

capacities to be developed and

development assistance needs to put

institutional

strengthened

across

the

m u c h more emphasis on creating

development

organisation, starting with the board

attitudes and approaches which

competencies

down to field functionaries. Donors

consider this fact.

could play an important role in

Conclusion

promoting these capacities within

the organisation. SDC's experience

SDC is convinced that collaboration

is that promoting capacities often

between donors and development

do not need large financial

organisations has to be based on a

resources. What is required is

strong value premise. Promoting

investments in human capital and

effectiveness is the key guiding principle

some financial support to facilitate

in all endeavours that SDC and its

such efforts.

partners attempt. In the Indian

f.

P u t emphasis on programme

microfinance context, providing and

steering:  G o v e r n a n c e  w i t h i n

facilitating access to financial services

o r g a n i s a t i o n s has to deal with

on a sustainable basis for a large number

effectiveness  (including  cost

of poor men and women is the key

effectiveness) as well as with

challenge for all stakeholders. SDC has

efficiency questions. To steer a

been collaborating with many Indian

programme systematically is often

partners in meeting this challenge. As a

not a priority within partner

bilateral donor, it sees its role as a

organisations.

Moreover,

facilitator in linking the formal and the

considerations pertaining to finances

informal financial system, promoting pro-

and financial management hardly

poor innovations and promoting

form a part of the decision-making

empowering  behaviour  through

process. We think that this is an area

c a p a c i t y building in human and

where donors could and should

institutional

development

provide more support.

competencies. The role of capital is

g.

`Sustainability' thinking as an

important but more important are the

inspiring source of donor-partner

issues related to development of human

interactions : Sustainability in its

capital. The role of donor equity in MFIs is

largest sense means to promote,

to support innovations and enable the

maintain

and

create

life.

local institutions to leverage resources

Sustainability thinking provides

from the mainstream national and

energy and creativity, so that self

international financial system. Quality

responsibility, along with solidarity

and effectiveness principles are at the

and compassion, remains at the

core of all development endeavours.

core of the change process. We think

The role of donors is to support and

that behaviour and approaches

promote these core principles in

derived from such a spirit guarantees

collaboration with its partners.

Kurt Vogele and Ajit Kanitkar

Mr. Kurt Vogele is the Country Director, SDC and Dr. Ajit Kanitkar, formerly

Programme Officer, SDC, now works as an independent consultant

ajitjyoti@vsnl.com