NGO performance - What breeds success? New evidence from South Asia

What is the best way for nongovernment organisations (NGOs) to make a lasting impact on poverty? This paper summarizes the findings of recent research into the impact, sustainability and cost-effectiveness of two NGOs in India and two projects implemented by Save the Children Fund-UK in Bangladesh. The factors determining performance are explored through the interaction of organizational decisions with the external context. Although these interactions are complex and dynamic, some clear conclusions emerge. 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, These conclusions question the current predilection among donor agencies to fund large-scale NGO service delivery. (C) 1999 Elsevier Science Ltd. All rights reserved.