Environmental NGOs in Ecuador: an economic analysis of institutional change.

Resumen

Nongovernmental organizations (NGOs) in Latin America have grown more rapidly than has our understanding of the economic and political implications of this major institutional change. In Ecuador, between 1984 and late 1992, at least 24 new environmental NGOs emerged. An economist does a case study of them, especially Fundacion Natura (FN) in Ecuador, to understand their role and behavior which are a large part of environmental politics in Latin America. NGOs are successful because the public sector cannot meet the countries' needs and donors want to help NGOs, thereby providing the demand. For example, FN has received funding from USAID, World Wildlife Fund, the International Union for the Conservation of Nature, and other groups. FN charges donors 15% to cover administrative costs while many other NGOs do not receive international funding for administrative costs. FN is well connected with the public sector which is supportive and beneficial. FN activities complement the public sector's efforts in the environment. Further, it is well connected with private industry from whom it receives financial support. It has been criticized for supporting industry on some environmental issues, however. In fact, its Cuenca chapter split from FN in 1984 to form Tierra Viva, because FN sided with industry when industry wanted to build on agricultural land in Cuenca. FN's relationship with USAID is strained. FN is successful because it employs quality personnel who are committed to FN objectives. Yet FN and other NGOs do not have the monetary incentives for efficient production. Most other NGOs are financially strapped and depend on volunteers. The more radical environmental NGOs do not accept donations from the private sector and do not want to work with government. Despite the influence donors have on NGOs, the NGOs' powerful presence and their environmental education programs have consequences beyond donor control (e.g., FN and USAID).