The Role of Innovation In Sustainable
Resource Mobilisation by Non
Governmental Organisations (NGOs)
A Thailand Example
Robert Steele
Director, Systainability Asia
Bangkok, Thailand
The Challenge of Sustainable
Development
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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”;
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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.
UN Millennium Development Goals
1.
2.
3.
4.
5.
6.
7.
8.
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Eradicate extreme poverty and hunger
Achieve universal primary education
Promote gender equality and empower women
Reduce child mortality
Improve maternal health
Combat HIV/AIDS, malaria, and other diseases
Ensure environmental sustainability
Develop a global partnership for development
Source: http://www.un.org/millenniumgoals/
The Challenge for NGOs in contributing
to Sustainable Development
What is the primary limiting factor for
NGOs to effectively carry out their
work?
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The Challenge for NGOs in contributing
to Sustainable Development
What traditionally has been the primary
source of funding for most NGOs
throughout the world?
Grants &
Donations
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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?
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What Sustainability Innovation means
Thinking Outside the Box
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New targets and standards
New materials and technologies
New controls and feedback
mechanisms
New information flows to new people
New rules, policies, incentives
New forms of organization,
cooperation, collaboration
New business models, supply and
value chains
New overarching goals and visions
New skills and capacities
New mindsets and paradigms
A NEW WILLINGESS TO TRY NEW
THINGS
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.
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Source: Everett Rogers, “Diffusion of Innovations,” 1962, Revised 1995, Free Press
Critical Characteristics of Innovations
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.
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OBSERVABILITY – the visibility of the results
Source: Everett Rogers, “Diffusion of Innovations,” 1962, Revised 1995, Free Press
Innovation Diffusion Strategy. . .
Involves looking at the Innovation itself …
… but also at the Cultural Context around it.
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A Thailand Case: The Population
Development Association (PDA)
Thinking out of the box and ahead of the
curve
&
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The Population Development Association
(PDA)
Mission: Empowerment of the Poor
The Condom King
Mr. Mechai Viravaidya
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Internationally wellknown for its early
pioneering work in
family planning and
tackling the HIV/AIDS
situation in Thailand.
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
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Mobilisation Through Business Activities.
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)
The Resulting outcome….
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1974
2005
Child/ Family
7
1.2
Pop. Growth
Rate
3.3%
0.5%
Also outside
Non-pregnancy micro-credit
programme
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Mobile Vasectomy Clinic
“Vasectomy Millionaire’s
Festival”
Source: Population and Community Development Association, http://www.pda.or.th
Mainstreaming Condom Use…
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Population & Health Awards
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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
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.
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One Example: The Thai Business
Initiative in Rural Development (TBIRD)
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Launched in 1988
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Takes advantage of business
interest in CSR
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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.
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.
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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.
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Source: Viravaidya, M.. 2001. Strategies to Strengthen NGO Capacity in Resource
Mobilisation Through Business Activities.
Ahead of the Curve… NGO Sustainability
Thinking like a Business…
Population Development
Company Limited (PDC)
“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.”
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Source: Population and Community Development Association (PDA). 2001. Strategies to
Strengthen NGO Capacity in Resource Mobilization through Business Activities.
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…
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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.
Some of PDA’s Cost Recovery
Activities (profit optimization)
Providing Health Care
Agricultural Products
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Providing Training
Eco-Tourism
PDA’s Profit Maximization Activities
Cabbages & Condoms Restaurant
Gross revenue approaching US$ 75,000
per month.
Source: Population and Community Development
Association (PDA). 2001.
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PDA’s Profit Maximization Activities
Cabbages & Condoms Resorts
Pattaya, Thailand
(Thailand Gulf)
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Nakorn Ratchasima, Thailand
(Northeast Thailand)
Strategies for NGO Commercial
Ventures
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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
It is time NGOs embrace thinking new!
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Thank you for your attention!
Robert Steele
SYSTAINABILITY ASIA
www.atkisson.com
www.systainabilityasia.com
© 2007 SA