Masoumeh Bagheri, Fatemeh Noughani and Housein Moltafet Formation of Voluntary Associations in Iran Formation of Voluntary Associations in Iran MASOUMEH BAGHERI, FATEMEH NOUGHANI AND HOUSEIN MOLTAFET Non-governmental organisations have attracted growing criticism for being unrepresentative of and unaccountable to the poor people for whose well-being they claim to work. Making a difference to livelihoods and capacities among poor people depends on NGO successes in fostering autonomous grassroots institutions and linking them with markets and political structures at higher levels. The conclusions question the current predilection among donor agencies to fund large-scale NGO service delivery. Dr. Masoumeh Bagheri is Assistant Professor at the Department of Economic and Social Sciences, Shahid Chamran University, Ahvaz, Iran. Ms. Fatemeh Noughani is a Ph.D. Student in Anthropology, at the University of Pune, India, and Lecturer at the Tehran Medical University, Iran. Housein Moltafet is Academic Member of Department of Economic and Social Sciences, Shahid Chamran University, Ahvaz, Iran. INTRODUCTION Inderjeet Kaur (1990) has pointed out that the concept of voluntarism or voluntary action stands for social satisfaction, political participation and economic growth complying with the norms of social equity in a healthy atmosphere both moral and material. In its concrete form, a minimum and balanced level of social security, health, education, employment, people’s participation in political process, and economic advancement, manifest the true notion of development, which is a precursor to the ultimate aim, the attainment of human dignity, cultural freedom, social justice and democracy. So development is the process in totality. The NGO sector has addressed the various needs of the poor and the socially, politically and economically disadvantaged since the early 1920s. It is only recently, however, that there has been a convergence of approach, with NGOs seeking to combine project-specific work with active organisation of the poor. Community organisation is now treated as an essential pre-requisite to the successful introduction and implementation of development programmes. Further, NGOs realise that organisational work among the poor cannot be sustained without economic improvement (Riddell and Robinson, 1995). Although the NGO sector has become increasingly professionalised over the last two decades, principles of altruism and voluntarism remain key defining characteristics (Bach and Stark, 2004). The NGOs first began to work with groups using the 84 Masoumeh Bagheri, Fatemeh Noughani and Housein Moltafet principles of the cooperative movement, experimenting with and learning from the cooperative sector. The availability of international donor funding made it possible for many NGOs to try out new initiatives. The first few innovations in group financing and indeed, much of the further refining of group-based credit methodologies have come from NGOs. The development of group-based credit through NGOs, government, and banks’ group-based credit is important. It has met the latent needs of both poor women and NGOs, as mainstream savings and credit facilities are not easily accessible to the poor, and NGOs enjoy a good response for these services. On the supply side, it was good for NGOs to provide microcredit to women’s groups. Usually, NGOs are registered as Trusts or Charitable Societies under the Trust Act or the Societies Registration Act. The philosophy of these organisations is based in the realm of people-centred development. Those engaged in the activity often lack professional and managerial ability to deal with the task at hand (Acharya and Premchander, 1999). The involvement of NGOs in development in the Third World has dramatically increased since the 1980s (Fisher, 1993). Voluntary associations in Iran such as environmental, medical, developmental, rehabilitation, legal and supportive institutions have been placed under the public welfare institutions. Hence, among them the supportive and medical voluntary associations are the oldest and most established organisations (Hussaini, 1990). Conceptually and in practice, the voluntary organisation and non-governmental organisations, do not aim at total development, which is the task of the government. They have limitations with respect to the target groups covered (community), limited range of services and selective level of social reforms. Even among the community, it attends to those who are deprived or suffering economic deprivation on account of social inequality and social systems developed over decades. In one word, they are by the people, for the people, and with the people METHODOLOGY The present study is exploratory in nature using survey as a method of investigation. Both qualitative and quantitative data have been used for this research. Observation and interview schedules were designed as tools of investigation. The researcher started the study with extensive use of materials available on the subject and made attempts to analyse the models and patterns of the present institutional support system in the context of historical growth and coverage of social and economic issues. The numbers of NGOs vary according to method used, but all tell a similar story-NGOs of all types have increased dramatically in number and scope in recent years, becoming a component in the fabric of democratic institutions. Indeed, these organisations have begun to satisfy the objectives that guided the social and environmental Formation of Voluntary Associations in Iran 85 accounting movements. Thus, special attention was given to the role played by formal financial associations and informal funding associations. Data was collected from both primary and secondary sources. In view of the physical constraints and time factor, field research was defined by stratified random sampling method. The institutions, particularly, were categorised or stratified under two major classes: firstly, those associations which have been registered and their names are available in the master list of governmental centres; secondly, unknown and scattered associations which do not have any particular name (Imam Charity Organization, 2002). Thus, selection of the samples has been done in Tehran, the capital of Iran, from both types of associations. RESULTS AND DISCUSSION To study the typology of associations in Iran, due to certain limitations, we confined the study to those associations which work on social welfare and public affairs. Therefore, the selection of associations has been made according to the degree of participation, cooperation and assistance among people who take part in the various voluntary organisations. The voluntary associations have been selected according to following criteria: 1. Appropriate number of the associations to distinguish between various types and models. 2. Reliable record of changes in work division of associations in the course of time. 3. Degree of internalising and regenerating in the society. 4. Degree of social and public acceptability that accelerate the generating and circulation of the funds. Hereby, we have two major types of institutions which are divided into five types of voluntary associations in Iran. They are different in origin as well as level of social and economic division of work. Spontaneous institutions divided into three types of Voluntary Associations (VA): • Primary Associations • Religious/Ceremonial Associations • Consensus-based Associations. Non-spontaneous institutions divided into two types of VA: • Beneficial Associations • Promotional Associations Spontaneous Institutions Primary Associations and Religious Associations Fundamentally, they have religious and traditional origins. In primary and religious/ceremonial associations, all rules are controlled by the 86 Masoumeh Bagheri, Fatemeh Noughani and Housein Moltafet most generous person, and the other members of the association help him/her on the basis of onerous feelings of such charitable deeds, which are rooted in the spirit of religion and customs. In this view, authenticity and non-governmental organisation accountability involve the development of social practices, which satisfy individual demands in society at large-that their aims and objectives are to be given full consideration, that their life-plans, values and beliefs are respected in a manner consistent with the ideal of authenticity. Invariably, processes of individual self-realisation involve developing respect between citizens in a reflective and interpretive social system (Rawls, 1995; Taylor, 2003). Consensus-based Associations The relationships among members of such associations are based on mutual aid and reciprocal support. They are highly advanced in socio-communal cooperation. The social work division among them has grown well. But economic work division is in its primary stages. It is important to recognise NGO staff as knowledgeable and heterogeneous agents, with sophisticated and diverse understandings of the institutional, social, economic, and political contexts within which they carry out their projects. In this view, NGOs have complex geographical ranges and in addition to being connected to one another, are often entangled with state or quasi-governmental agencies, as well as with businesses (Fowler, 2000; Malhotra, 2000). Non-spontaneous Institutions Beneficial Associations Generally, these organisations do not carry out projects and supportive functions, but rather connect grassroots organisations to national funding agencies and under the name non-governmental organisation conceal their various economical activities, and take advantage of the legal rules and regulations which are meant for these types of organisations, such as reduction of taxes. Of course, many NGOs are not interested in, and are even opposed to, conducting outsourced ‘investment in communities’ on behalf of corporations (Lindenberg and Bryant, 2001). Promotional Associations The reasons for establishing this type of associations are international pressure, gaining better status and also controlling other types of associations, which come into existence in Third World countries through their governments and international agencies. Indeed, Iranian Non-governmental Organisation (INGO)-NGO relationships are increasingly being channelled through, or mediated by, a cadre of Formation of Voluntary Associations in Iran 87 intermediary organisations taking the form of clearinghouse, partner, or affiliate NGOs (Abramson, 1999 and Townsend, 2002). These intermediary organisations can be valuable for initiating inter-organisational connections, and connecting larger NGOs and INGOs to local NGOs through tactical, temporary alliances (Gordenker and Weiss, 1997). Nonetheless, for some NGOs the forging of alliances with elements of the corporate sector, especially in the local setting, may be viewed as a positive opportunity and may be crucial to ensuring the NGO’s sustainability (Aldaba, 2000; Henderson, 2000). TABLE 1: Growth of Voluntary Association Type of Association (Upto 1978) Before Islamic Revolution (Upto 1978) After Revolution 1979-1982 1993 Onwards N P% N P% N P% Primary Associations 10 76.9 46 52.8 36 42.8 Religious Ceremonial Associations 2 15.3 26 29.8 26 30.9 Beneficial Associations - - 7 8.0 6 7.1 Promotional Associations - - 4 4.5 4 4.7 Consensus Based Associations 1 7.6 4 4.5 12 14.2 Total 13 99.8 87 99.6 84 99.7 It is worthwhile to analyse the growth of the various supportive associations in Iran. The historical development in this regard is presented in Table 1. It is evident from the above data that the development of voluntary organisations could be classified in three phases: before the Islamic Revolution, that is, the period before 1979; the second phase which was between the years 1979–1992; and the third phase of development covering the period 1993 onwards. As seen in Table 1, before the Islamic revolution the total number of associations was 13, of which as many as 76.9 per cent were primary associations. Only 15.3 per cent were religious/ceremonial associations and less than ten per cent were consensus-based associations. The conditions improved in the years 1979–1992 with the total number of institutions increasing to 87. The number of primary associations increased to 46 forming about 53 per cent of the total number of institutions. Religious/ceremonial associations increased from 2 in 1978 to 26 between 1979–1992, constituting almost 30 per cent of the total number; consensus-based associations increased from 1 to 4 constituting almost 5 per cent of the total number. During this period, there were beneficial and promotional associations as well, constituting about 8 and 5 per cent respectively, of the total institutions. The total number of institutions in the period following 1992 decreased by three and so the total dropped to 84. Primary associations 88 Masoumeh Bagheri, Fatemeh Noughani and Housein Moltafet decreased forming about 43 per cent of the total. Religious/ceremonial associations remained the same in number as the previous period, that is, 26. The number of beneficial associations declined from 7 to 6 in 1993, promotional associations remained at 4, and the number of consensus based associations increased from 4 in 1992 to 12 in 1993. From the above data it is quite clear that there was not perceivable change or development in the growth of different types of voluntary associations. Frequency distribution of the Assemblies that established five types of Supportive Associations in Tehran are given in Table 2. They can be classified as: • Commercial Assemblies • Governmental Assemblies • International Committees • Mosques and Religious Assemblies • Cultural Clubs • Islamic Domain • Family and Relatives Assemblies • Friends and Colleagues Assemblies The data in Table 2 reveals that the highest rate of primary associations as well as religious/ceremonial associations were established by mosques and religious assemblies. Consensus-based associations arose mostly from cultural clubs. An equal percentage of beneficial and promotional associations originated from commercial and governmental assemblies. The above data show that more than half of associations originated from mosques and religious institutions. Characteristics of Primary Associations These types of associations in addition to their simple relations lack economic and social division of work. Many of these associations either bear a religious name or no name at all. Primary associations are self-governing independent bodies, voluntary in nature, and tend to engage both their supporters and constituency on the basis of values, or some shared interest or concern, and have a public benefit purpose. Funds are raised primarily from members, while donations from non-members and profit from fund-raising events account for a very small share of revenue. The management of primary associations is patriarchal in nature and to some extent charismatic. A manager is like a godfather for all, he is the main decision maker. It means the managers are from the middle class with a certain degree of local trust. The manager is a reliable person with long-term experience and notable qualifications; no written sanctions. Hence, members do not have active roles, and criticism is meaningless. It has been seen that in some cases the manager is not just one person but a group of elderly who work together and run the affairs of associations. They do not have Formation of Voluntary Associations in Iran 89 90 Masoumeh Bagheri, Fatemeh Noughani and Housein Moltafet a fixed place for members’ meetings; they are mostly held at a member’s house or in other places which are established for some other public purposes. Membership is restricted to relatives, friends and acquaintances of the manager (Ghasemi, 2002). This type of associations were established with sympathy for the poor sections of society and stressed on adult literacy and small material aid to the vulnerable groups. Characteristics of Religious Associations These types of associations often originated from primary associations and sometime had their roots in family, relatives and ethnic communities. A good leader is arguably one of the most precious resources any organisation, non-governmental or otherwise, can have. Our survey suggests that Tehran VA are directed and managed by individuals who are well above the national average in terms of education and experience. Hence, they have a qualified manager or organiser and generally they gather and have meetings in a fixed and permanent place, which belongs to the association. The mainstay of the associations is spiritual support through religious sanction, but another function is to provide financial help to the families below the poverty line that are known to them. Most of the NGOs act within “an established development orthodoxy of their own” (Vivian and Maseko, 1994). Characteristics of Consensus-based Associations These types of associations have originated from previous primary associations in the cultural assemblies and among colleagues. Mostly, they have one manager or an organiser. They have a high supportive efficiency. The adoption and adaptation of managerialism in the voluntary sector has been twinned with a pervasive culture of professionalism, and managerialism has become a central daily concern for staff in voluntary associations. It is increasingly the case that in order to be eligible for project funds, voluntary associations’ staff must demonstrate that they understand and apply management practices in line with those employed by their donor agencies. The main spring of this type of associations is spiritual and non-material compassion and empathy for the vulnerable people of the society. But material aids also can be seen in this type of associations. Brown and Korten (1989) comment that some NGOs appear to have lost sight of this fact in a headlong rush for growth, influence and status, forgetting that ‘volunteerism and values are their most precious asset’. Characteristics of Beneficial Associations These kinds of associations have been established due to profit seeking and legal vacuum in society. They have a qualified manager, and members’ selection is on the basis of their qualification and suitability Formation of Voluntary Associations in Iran 91 to activities. Social interactions among the manager, members and partners are highly advanced. These kinds of associations have a fixed and well equipped place for their activities and meetings. Their members are limited to a specific number, but they have enough clerical staff; as a voluntary association, their supportive outputs are low or ambiguous. They have their roots in commercial groups or some sections of government, which can give them the opportunity to escape from certain laws and regulations such as taxes and so on-even to get advantage and benefits of certain laws for upgrading the supportive associations. Characteristics of Promotional Associations These types of associations came into existence due to global pressures and other associations’ socio-economic controls on them. These associations depend on international and governmental financial support; they have a specified manager or organisers with fixed meeting places and their members are limited to a certain number. In fact, over the past decade, they have had to implement programmes reflecting the more inclusive goals of the international organisation. The promotional association’s hierarchical structure, when coupled with its independence as a clearinghouse, enables a few key actors within the organisation to exert tremendous power, including control over strategic planning; here a small core of permanent staff acts as gatekeeper for the content and form of managerialism as it circulates throughout the non-governmental organisation’s network. The promoter is inclined to maintain their power and position in the group. In promotional associations, output depends on injecting the equipment and facilities, and self-determination cannot continue without relying on a special person. The main spring of establishing such associations depends on personal intent of the founder. CONCLUSION Voluntary associations along with NGOs have attracted growing criticism for being unrepresentative of and unaccountable to the poor people for whose well-being they claim to work. This happens in part, because the chronic weakness of popular organisations makes it difficult for NGOs to reach the poorest groups. However, such problems of representation also occur because trends within the aid-chain have made it increasingly difficult for both of them to understand the dynamics of livelihood or new organisational possibilities among poor populations. When some of these groups are out-of-date then interventions become biased toward the less poor. Some are explicit (as when poverty is described and conceptualised), while others remain more implicit (for instance, in the silences and missing themes in VA and NGOs project interventions). All the truly national NGOs are very small here and have very weak institutional capacity. Being a third 92 Masoumeh Bagheri, Fatemeh Noughani and Housein Moltafet world country, it is lacking a body of highly educated people. The will is definitely there, in quite an unselfish way. But there’s such a huge capacity vacuum. It is usually assumed that two main characteristics distinguish NGOs from other organisations: They are not motivated by profits, and they have a charitable or philanthropic purpose. These two characteristics are what enable NGOs to seek funding from the public and international donors. In developed countries, these two principles also form the basis for NGO monitoring by governments. The situation in Iran is quite different, with less monitoring by the government and more by donors. This is largely a reflection of what the sector does and how it finances its activities. In Iran’s VA and NGOs religion seems to be their primary motivation. Only a fourth of the surveyed VA and NGOs are not faith based. The expansion of NGO impact beyond the local level has become an important issue. In the absence of scaling up, NGO successes remain little more than islands of excellence in a wider economic and institutional environment which is detrimental to the poor. It is noteworthy to mention that in Iran the VA and NGOs are not highly popular and active, perhaps it has been due to lack in their efforts to popularise their objectives. THE RESULTS IN CONTEXT Similar findings come from other studies, which have explored the performance of NGOs in different contexts in other countries. In the path-breaking study, Ramakrishna (2004:75) concluded that “NGOs play an important role for sustainability of self-help groups in solving social problems, in promoting education, in generating employment, in bringing about people’s involvement in solving their problems, hence tax laws have to be modified”. The same conclusion has been echoed in the research work of Bagheri (2002) which has drawn upon the work of Bebbington (1996) and Belshaw and Coyle (2001): “The NGO organisation acted as facilitators, encouraging self instinct and confidence among the members. These NGOs were largely instrumental in maintaining cohesiveness among the groups and were found to be instrumental in handling conflicts among self help group members and educating and training the self help groups membership in the concept of ‘We win-I win’”. In all these cases it was the balance between increased economic security, success in social organisation, and the ability to influence the political process that ‘made the difference,’ coupled with strong and active linkages between grassroots organisations, NGOs, governments and banks (Evans, 1996; Fox, 1996; Sachikonye, 1995). These conclusions may appear obvious, yet it is imperative to address ethnic and other diversities, differentiation and rights of the people through discourse and negotiation in a larger, free, egalitarian and fraternal whole. Therefore we argue that the issue of NGOs has to be addressed in the very present structural context of political economy Formation of Voluntary Associations in Iran 93 at large. Great care and discrimination are needed to support NGOs in finding a dynamic balance between its roles, and not push them into large-scale service delivery and short-term results. 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