The Role of Innovation In Sustainable Resource Mobilisation by Non

Governmental Organisations (NGOs)

A Thailand Example

Robert Steele

Director, Systainability Asia

Bangkok, Thailand

© 2007 SA

The Challenge of Sustainable Development

Sustainable Development will require innovative ideas, increased knowledge, effective tools and sustainable resources that give people around the world the capacity they need to create “sustainable livelihoods”;

Meaning… jobs that produce basic products and services for the local economy, generate income and purchasing power, and also provide dignity and meaning to peoples’ lives.

© 2007 SA

UN Millennium Development Goals

1. Eradicate extreme poverty and hunger

2. Achieve universal primary education

3. Promote gender equality and empower women

4. Reduce child mortality

5. Improve maternal health

6. Combat HIV/AIDS, malaria, and other diseases

7. Ensure environmental sustainability

8. Develop a global partnership for development

Source: http://www.un.org/millenniumgoals/

© 2007 SA

What is the primary limiting factor for NGOs to effectively carry out their work?

The Challenge for NGOs in contributing to Sustainable Development

© 2007 SA

What traditionally has been the primary source of funding for most NGOs throughout the world?

The Challenge for NGOs in contributing to Sustainable Development

Grants & Donations

© 2007 SA

NGO and Funding…

The primary source of funding for most NGOs throughout the world is still mostly through grants and donations.

But how sustainable is this type of funding mechanism for both the NGOs and the communities that depend on their services?

© 2007 SA

What Sustainability Innovation means

New targets and standardsNew materials and technologiesNew controls and feedback mechanismsNew information flows to new peopleNew rules, policies, incentivesNew forms of organization, cooperation, collaborationNew business models, supply and value chainsNew overarching goals and visionsNew skills and capacitiesNew mindsets and paradigmsA NEW WILLINGESS TO TRY NEW THINGS

Thinking Outside the Box

© 2007 SA

Innovation…

…anything not part of a particular “culture” that the culture decides to adopt. It could be a theoretical idea, a slang word, a new technology -- anything at all that changes how people think, talk and act.

Source: Everett Rogers, “Diffusion of Innovations,” 1962, Revised 1995, Free Press

© 2007 SA

Critical Characteristics of Innovations

Source: Everett Rogers, “Diffusion of Innovations,” 1962, Revised 1995, Free Press

1. RELATIVE ADVANTAGE – degree to which it is perceived to be better than what it supersedes

2. COMPLEXITY – difficulty of understanding and use

3. COMPATIBILITY – consistency with existing values, past experiences and needs

4. TRIALABILITY – degree to which it can be experimented with on a limited basis

5. OBSERVABILITY – the visibility of the results

© 2007 SA

Innovation Diffusion Strategy. . .

Involves looking at the Innovation itself …

… but also at the Cultural Context around it.

© 2007 SA

A Thailand Case: The Population Development Association (PDA)

Thinking out of the box and ahead of the curve

&

© 2007 SA

The Population Development Association (PDA)

The Condom King

Mr. Mechai Viravaidya

Internationally well-known for its early pioneering work in family planning and tackling the HIV/AIDS situation in Thailand.

Mission: Empowerment of the Poor

© 2007 SA

Thailand Population Situation in 1974

Children per family = 7

Population growth rate

= 3.3%

In rural areas, 1 doctor per 110,000 people, or approximately 9 doctors per 1 million people

Source: Viravaidya, M.. 2001. Strategies to Strengthen NGO Capacity in Resource

Mobilisation Through Business Activities.

© 2007 SA

Thinking outside the box before others…

Outside the box… train nurses and midwives to prescribe the pill (covering 20% of rural Thailand)

More outside the box… train shop keepers and hairdressers to prescribe the pill (100% coverage)

1974 2005

Child/ Family 7 1.2

Pop. Growth Rate 3.3% 0.5%

The Resulting outcome….

© 2007 SA

Also outside

Non-pregnancy micro-credit programme

Mobile Vasectomy Clinic

“Vasectomy Millionaire’s Festival”

Source: Population and Community Development Association, http://www.pda.or.th

© 2007 SA

Mainstreaming Condom Use…

© 2007 SA

Population & Health Awards

Gates Award. 2007 in recognition of Global Health. International Co-operation Prize of the All China Population Award. 1998 in

recognition of dedication to the population and family planning endeavor and promotion of friendship between Thailand and China.

United Nations Population Award (UNPA) 1997 in recognition of most outstanding contribution to the awareness of population questions and to their solutions.

The Ramon Magsaysay Award for Public Service 1994 in recognition for mounting creative public campaigns in Thailand to promote family planning, rural development and AIDS prevention.

International Health Award for Outstanding Leadership 1990 presented by the National Council for International Health USA in recognition work in health, population and development in Thailand, and for setting a standard for innovative and creative leadership for the international health community.

Friend of Family Planning Award 1990 presented by the National Family Planning and Reproductive Health Association - USA, for commitment to the promotion of family planning services in Thailand.

Margaret Sanger Award 1985 presented by the Planned Parenthood Federation of America to honor significant contributions to the worldwide family planning movement.

United Nations Gold Peace Medal and the Paul G. Hoffman Award 1981 for achievements in the advancement of family planning and integrated health and community will-being at the grassroots level in Thailand.

Source: Population and Community Development Association, http://www.pda.or.th

© 2007 SA

PDA has expanded its activities since then …

PDA programs now encompass … integrated rural development, water resource development, local institution building, medical and health services, population control and AIDS care activities, income generation and occupational

training, forestry and environmental conservation.

© 2007 SA

One Example: The Thai Business Initiative in Rural Development (TBIRD)

Launched in 1988

Takes advantage of business interest in CSR

Purpose: To share the financial, technical and managerial recourses of the private sector with government and community initiatives, in order to support the economic development in poorer areas.

© 2007 SA

Thai Business Initiative in Rural Development (TBIRD)

By fostering or adopting a village, a company can help the community to earn a reasonable income through sustainable agricultural projects, cottages industries, and small enterprises.

TBIRD has grown to involve over 150 companies in 280 projects, bringing over US$50 million in resources to otherwise-neglected areas of rural Thailand.

© 2007 SA

Privatization of Poverty Alleviation Example: Nike Village Development

Project began with the establishment of a shoe factory in one rural Northeastern Thai district.

Its success has lead to other Nike-supported initiatives benefiting almost 3,500 families who previously struggled with a lack of resources, employment opportunities and frequent droughts.

The relocation of factories outside of Bangkok’s industrial zone has strengthened local communities and dramatically

reduced poverty. Source: Viravaidya, M.. 2001. Strategies to Strengthen NGO Capacity in Resource

Mobilisation Through Business Activities.

© 2007 SA

Ahead of the Curve… NGO Sustainability

“Today PDA covers 70% of its annual budget from its own resources and aims to be 100% self-sufficient by the end of the decade.”

Source: Population and Community Development Association (PDA). 2001. Strategies to

Strengthen NGO Capacity in Resource Mobilization through Business Activities.

Population Development Company Limited (PDC)

Thinking like a Business…

© 2007 SA

Achieving Financial Sustainability Through Innovation & Diversification

NGOs should also start thinking like a business. Thinking out of the box means looking at two other funding sources…

1. Cost Recover (profit optimisation)... which means selling their services rather than giving away their services (i.e. “fee-for-services”)

2. Commercial Ventures (profit maximisation)… finding underserved segments of the population, i.e. some niche, and designing products and services to meet the needs of those markets.

Source: Viravaidya, M.. 2001. Strategies to Strengthen NGO Capacity in Resource

Mobilisation Through Business Activities.

© 2007 SA

Some of PDA’s Cost Recovery Activities (profit optimization)

Providing Health Care Providing Training

Agricultural Products Eco-Tourism

© 2007 SA

PDA’s Profit Maximization ActivitiesCabbages & Condoms Restaurant

Gross revenue approaching US$ 75,000 per month.

Source: Population and Community Development Association (PDA). 2001.

© 2007 SA

PDA’s Profit Maximization ActivitiesCabbages & Condoms Resorts

Pattaya, Thailand

(Thailand Gulf)

Nakorn Ratchasima, Thailand

(Northeast Thailand)

© 2007 SA

Strategies for NGO Commercial Ventures

Conduct core activities for paying clients Contract out support services to the private

sector Market products made by their beneficiaries Tie-ins to public relations activities Maximize utilization of assets and facilities

© 2007 SA

It is time NGOs embrace thinking new!

© 2007 SA

Thank you for your attention!

Robert Steele

SYSTAINABILITY ASIA

www.atkisson.com

www.systainabilityasia.com