I have heard of abuses (corruption?) in the NGO community in SE Asia, but I didn't realize it was as bad as a recent article suggests. An article from today's "The Australian" website said that up to 80% of international aid goes to cushy expat employment packages. "A country director for a prominent international charity typically receives a $250,000 package that includes a spacious villa, four-wheel-drive and schooling perks."
If this is true, it is really, really sad. Just taking into account the salary alone, someone making $250,000 a year is making $684 EVERY DAY. According to the CIA World Factbook, Cambodians make an average of around $2,500 EVERY YEAR. So this rich expat is making a an Cambodian annual salary EVERY FOUR DAYS. Makes you wonder who is truly the recipient of the "charity".
I mentioned the book "Leaving Microsoft to Change the World" before. One stat that Tim Woods mentions is that the NGO he founded (Room to Read) only has a 10% overhead, which means that 90% of all donated funds go to the people they are trying to help. That is a very respectable number.
Just goes to show that when you make those contributions, it's a good idea to check to see where they are really going...
The article I referenced above is Expat pay absorbs aid to Cambodia
Hi, Stuart Grant!!
Your parents were in Little Rock for THE GAME this weekend.....and they came by the apartment!!
Panama will be cool (and warm) in December!! I hope y'all have a lot of fun!! Otherwise, have fun being "Uncle Stuart Grant"!!!
Love, Sharum
Its a good thing Anjolina got Maddox out of there in time. :P
Brad P.
Its a good thing Anjolina got Maddox out of there in time. :P
Brad P.
Hi there,
I think it's important to keep some perspective on the salary issue. I'm not sure how they were calculating it, but it would be extremely rare for an NGO director to receive that kind of salary. Typically the international director of an NGO will not even receive close to that. I suppose if they figure in a $60,000 vehicle (as a lump sum?), health insurance (maybe $20,000 all in for a family of 4), tuition for 2 children at an international school (maybe $25,000), housing allowance ($12,000), and ummm...gosh I don't know what else. What I do know, is that it is rare for NGOs (and I mean NGOs, not World Bank or ADB) to pay more than $60,000/annum for a salary. A programme manager level might earn $40 - $50k. this is on average of course, there are some that pay far less, and some that pay more.
As for the 10% overhead of your friend's NGO, I wonder what he is classifying as overhead? A lot of NGO say "X%" goes to administration, but they are not factoring in field administration, only head office administration.
Yeah, it's a business, and some of it is corrupt. Like the UN. Those guys are evil. But there is still good being done as well. I suppose it's how effectively people "play the game."
Hello Anne and thank you very much for your comments. Of course I am just an outsider with no real information about how much these NGO Directors make. But I do remember that it was a major point in the book that I mentioned that a lot of the money that is donated goes to perks for expats. Why do they need a $60,000 car? Won't a Honda City be OK? Health Insurance for $20,000 a year, when a hospital visit costs $10 in these developing countries?
You make a good point though -- even if only 20% of the money is going to the right hands, then that's better than 0%. Perhaps I just am being overly-idealistic in hoping that more than 20% can make it.
I have a friend who is a manager at the Bill and Melinda Gates Foundation and he's given me some insights into it's grant process. Its interesting to note that their RFP's typically require a max of 10% program overhead for administration.
This is a radical departure in the grant process because traditional recipients of such grants (Schools and Universities) often take 50% off the top before it reaches the program. The foundation is saying no more to that.
Now speaking of charities gone bad, my next door neighbor was arrested (and is still in jail as far as I know) for "allegedly" stealing several hundred thousand dollars from a charity she was managing.
Charles, thanks for your comments and insight. Living in a developing country has really opened my eyes to the fact that human nature is greedy and selfish. More often than not, it seems, people will take advantage of other people whenever they can. And it's much easier to get away with it here, when the poorer people don't have any rights or power or any voice. I hate to be so pessimistic, but...