Zarko Paunovic

PROFILE OF NONGOVERNMENTAL, NON-PROFIT SECTOR
IN THE FEDERAL REPUBLIC OF YUGOSLAVIA

(1997)

Nongovernmental organizations are gaining in importance throughout the world. There is hardly any attempt to address social problems without nongovernmental organizations. Comparative non-profit sector research indicates that the next phase in the development of contemporary societies will be marked by an even greater participation of these organizations in different aspects of social life. Additional evidence can be found in the latest research entitled “Study on actual and potential role of European Actors in science communication – NGOs potential mediators and amplifiers of scientific and technological information”, conducted by the IDIS Foundation for the European Commission. The findings show an increasing significance of nongovernmental organizations as mediators between institutions and the general public. This greater impact of NGOs is confirmed in a number of research findings revealing that a higher degree of public confidence is accorded to nonformal structures in comparison with institutions that are traditional representatives of the society (schools, churches, universities, political parties, etc.). Nongovernmental organizations are, therefore, referred to as ‘new partners’ of social institutions.

Many international bodies, such as the United Nations and the European Union acknowledge the need for partnership in development management, between nongovernmental organizations and other institutions. In the recent years, NGOs have played an important role in series of conferences organized by the United Nations and the European Union. NGOs participate as partners, whereas conferences run in two parallel sessions (governmental organizations, and nongovernmental organizations). The following conferences are given as examples: the Vienna Conference on Human Rights (1993); the Cairo Conference on Population and Demographic Development (1994); the Copenhagen Conference on Social Development (1995); the Beijing Conference on the Position of Women (1995); the European Conferences on Environmental Protection (1994, 1995, 1996), as well as many others.

Nonprofit and nongovernmental organizations play an active part in the social policy of developed countries. The modern, large state is unable to deliver all the services to its citizens. In order to achieve greater efficiency, many of the programs are transferred to the non-profit NGO sector. In this way, the nonprofit, NGO sector becomes an alternative and a new partner (not a competitor) of the state. It is seen as a source of strength and self-reliance in crisis situations. Thus, nongovernmental non-profit sector is also referred to as the ‘Third sector’, i.e. a sector between the state and the market, on the one hand, and the family, on the other hand.

The additional importance of these spontaneous citizens’ associations focused on private, group and social problem-solving, lies in the creation of social networks that operate independently from the state and strengthen the civil society, increase citizens’ participation and their responsibility for themselves and the society in which they live.
There are multiple rationales behind the rapid expansion of new forms of citizens’ non-profit organizations, activities and programs, which are relatively or entirely independent of the state. They are often sought in the crisis of the welfare state, the social development crisis and the ecology crisis.

In Eastern European Post Communist countries, the mushrooming of NGOs is caused primarily by economic and political transformations. Social consequences of economic restructuring and weak social programs have motivated and mobilized citizens to organize themselves. Hence, the majority of researchers talk about the ‘rebirth’ of charitable activities and of civil society in countries of Central and Eastern Europe ¹. Different forms of civic self-organization, solidarity, assistance and self-help existed until communist regimes have suffocated the autonomy of the sector. Nevertheless, the ‘rebirth’ of the non-profit sector and civil society in Eastern European countries, reflected primarily in the creation of movements that support changes in form of different nongovernmental organizations, is not a mere outcome of these changes, but an active promoter.

HISTORY AND DEVELOPMENT OF NGOs IN THE FEDERAL REPUBLIC OF YUGOSLAVIA²

1. before the Second World War;
2. during the Communist system (ban on a number of organizations);
3. regained freedom of operation since the 1990 (social pluralization process)

THE MAIN FEATURES OF NONGOVERNMENTAL, NON-PROFIT ORGANIZATIONS
            

Number and type of NGOs

In the FRY, old terms are still used to designate charity and non-profit organizations: social organizations and citizens’ associations. This language is also adopted in legal acts. Although the term nongovernmental non-profit organizations does not appear in the local legal regulations, dictionaries and glossaries, it is widely used and present in everyday communication. The term “nongovernmental organizations” is used more and more, although it can still be misunderstood by some people. It may be understood to mean ‘anti-governmental’ organizations, primarily due to the semantic resemblance of these terms. In statistics on registered organizations, the terms ‘social organizations and citizens’ associations’ would still be encountered. The use of other terms, such as ‘the third sector’, ‘nonprofit sector’, ‘charitable’, etc. is very recent and limited mainly to the researchers of this sector. These terms appear in the names of two recently established organizations.¹⁰

Until 31 December 1994, according to the Federal Statistics Bureau data, there were 20.286 registered social organizations and citizens’ associations in the Federal Republic of Yugoslavia (Table 1)¹¹

1. peace organizations and groups;
2. autonomous women’s organizations;
3. SOS hotline against different forms of violence;
4. ecology organizations, societies and movements;
5. community development and capacity building;
6. organizations for protection of ambience;
7. organizations for promotion, protection and advancement of human rights and freedoms;
8. organizations for protections and restitution of  private property and ownership;
9. humanitarian organizations;
10. socio-humanitarian organizations;
11. journalist and media organizations;
12. educational, scientific and research organizations;
13. youth and student organizations;
14. organizations of entrepreneurs (business);
15. professional associations;
16. alternative cultural organizations;
17. refugee and displaced persons’ organizations;
18. other citizens’ initiatives, associations and groups.

Therefore, it can be noted from Table 2 that organizations involved in environmental protection, socio-humanitarian issues, issues concerning young people and local community development comprise the largest portions of the whole .
The analyses according to the Republics and Autonomous Provinces shows the highest concentration of organizations lies in Serbia - 519 compared to 39 in Montenegro. Of the total number of organizations in Serbia, 377 are in Serbia excluding the Provinces, 125 in Vojvodina and 17 in Kosovo and Metohia (Table 3).

The Constitution of the Federal Republic of Yugoslavia and the constitutional provisions relating to freedoms, rights and duties of citizens, guarantee the freedom of association and activity.

The following laws regulate the legal status of nongovernmental organizations in the Federal Republic of Yugoslavia:

• On the Federal level – Law on association of citizens in associations, social organizations and political organizations to be established on the territory of the SFRY;
• The Republic of Serbia - Law on social organizations and associations of citizens;
• The Republic of Montenegro – Law on associations of citizens.

The stated NGO field of activity determines which legal regulations apply. NGOs that wish to operate on the entire territory of Yugoslavia ought to be registered in accordance with the Federal Law. NGOs with activities targeted of the territory of a Republic ought to be registered in accordance with the legal regulations stipulated in the Law of the respective Republic.
An organization can be established at the founders’ Assembly, after the Articles of Association and the Decision have been adopted by the founders. Any citizen with voting right, i.e. all citizens of the FRY of legal age (18) can be listed as founders of an organization. The minimum number of founders required is ten. The contents of the Decision on association and issues that need to be addressed in the Articles of Association are stipulated in Law. In addition to the Decision on association and Articles of Association, the formal prerequisite for registration also includes: Minutes from the Constituent Assembly, signatures of the founders, application forms issued by the competent authority and administration fee. Documents ought to be submitted to the competent authority (the Federal Ministry of Justice) within 30 days of the Constituent Assembly.
Organizations that have decided to operate on the territory of a Republic or at local level can be established and registered in accordance with the Law on social organizations and associations of citizens (in Serbia), or the Law on association of citizens (in Montenegro), as well as other relevant legal acts.
An organization obtains the status of a legal entity upon registration. It is not allowed to operate before the competent authority has issued the ruling.
The legislator has not envisaged the activities of international nongovernmental organizations and foundations in the Federal Republic of Yugoslavia.¹³

Field of activity

Activities of the non-profit sector are very broad, difficult to determine and reduce to several key activities. This is particularly true of local NGOs that are not focussed on one specific area. Instead, they work simultaneously in a number of different fields. This fact makes any attempt to classify their activities a rather complex undertaking. For instance, half of all peace groups in the FRY are involved in humanitarian activities, in addition to issues of tolerance, peace, and conflict resolution. In some organizations, this mix of activities can be pronounced to the extent that they seem to fit better in to a group other than the one stated in their objectives and programs.
Therefore, NGO activities cannot be restricted to a single field. Instead, it is possible to distinguish between organizations with multiple objectives and organizations with a single objective. In order to obtain a global overview of activities of nongovernmental and non-profit organizations in the FRY, organizations have been classified according to their initial and primary objectives (Graph 1).
According to this criterion, the predominant fields of activity for organizations included in the research are: environmental protection and protection of ambient (23,4 %); humanitarian activities (22 %); local community development (14,8 %); protection of professional interest and rights (12 %); problems of young people (9 %); peace culture, tolerance and human rights protection (8,6 %); education and research (5,5 %); alternative cultural activities (4,3%).

Graph 1 NGO field of activity

Co-operation and networks

Certainly one of the key concerns regarding NGO activities relates to their communication, co-operation and networks. Civil society and the sector itself depend on the number and quality of networks. A multitude of autarchic and self-sufficient organizations does not contribute to social development, any more than it contributes to the realization of NGOs’ own objectives. In the majority of cases, the problems that progenitated these organizations are so complex that they can only be addressed through common, organized and planned activities (e.g. social policy issues, environmental protection, and human rights).
Research results show that only 48,9 % of organizations are networked or co-ordinate their activities with another organization. These networks usually link the similar organizations, and are often hierarchical and top down. Their structure corresponds to the structure of a territorial organization (level of the Federation, Republic, or municipality). There are a few networks linking different types of NGOs, such as the recently established NGO Council, or the Association of Free Cities and Municipalities of Serbia which are nonhierarchical and functional.
In view of the type of organization, the greatest number of networks has been established among ecology, socio-humanitarian and student organizations. The effectiveness of these networks is another issue.

Communication

Intra-organizational communication, communication among NGOs and with the public is a very important factor in NGO development. Many organizations, however, are unaware of this issue and attach very little importance to communication.
Lack of awareness is coupled with the lack of knowledge, technical and material resources.
While almost all NGOs covered by the research have a phone, only 68 % have a fax machine (see Graph 2). One in three organizations uses a personal fax number or a service number of another organization or company.

Graph 2 Access to fax machine

The situation concerning electronic mail is even worse. Only 19,3 % of all organizations have access to e-mail, i.e. to a computer. Nevertheless, these figures are not entirely reliable since private e-mail addresses are used in 50% of cases. It is clear from the analysis that the technical potential for communication of NGOs in Yugoslavia is very weak. The situation with other forms of communication is not much better: only 48,5 % of all organizations have their own publications (bulletins, brochures, papers, journals, and books).

Graph 3 Access to e-mail

Sources of funding

There are multiple sources for the funding of NGOs membership fees, donations (from individuals and foundations), government support, national lottery and income generating activities.
The most common sources of funding for local NGOs are membership fees, individual donations (primarily entrepreneurs) and international donors. Resources from national lottery (allocated to socio-humanitarian organizations) are decreasing, as well as government support. Neither the proportion of budget allocated for NGOs, nor the selection criteria are transparent, since there is no open competition. Decisions are probably based on political criteria.
Funds raised from membership fees are minimal. The majority of organizations have given up the collection of fees, due to the increase in poverty and the clining standard of living. Therefore, entrepreneurs and large state companies play a greater role in NGO funding.
If we exclude humanitarian aid to the FRY, funding and assistance provided by international organizations and foundations has been rather small in comparison with their contribution to other Eastern and Central European countries.
The share of funding generated through income generating activities is hardly worth mentioning at this point.

The main problems

In comparison with other countries in the region of Central and Eastern Europe, the transition in Yugoslavia is delayed, especially in terms of free market, international relations, decentralization of economic decision-making and privatization. The collapse of the economy in the early 1990s, reinforced by the disintegration of the former Yugoslavia, the war, the United Nations sanctions and international isolation, have resulted in a disastrous fall in domestic product and the standard of living. According to economic experts, Yugoslavias position is equal to that attained three or four decades ago.
In a very short period of time, the country has experienced a ravaging social crisis and social destruction, a very pronounced social differentiation, and loss of the basic characteristics of the status, especially for the middle layers of society. The mass impoverishment has encompassed the majority of the population (around 70%). The most severe impact of poverty has affected urban workers’ households. The new income poverty was drastic among employees in the social sector.
In the past seven years, despite the catastrophic economic and social conditions, many voluntary, non-profit organizations, and small self-organized groups have emerged in response to new livelihood problems, deprivation and poverty. The expansion in numbers of NGOs continues, especially after the political protest which laster for three months (November 1996 - February 1997).
The impact of the non-profit sector on social change, however, remains marginal and weak. This is due to a number of problems. Namely: the lack of experience and knowledge in all forms of work; the lack of financial and material resources; and the lack of an conducive political and social environment. The following problems can be distinguished as the main problems of the non-profit sector:

• NGOs are ignored by the state - inadequate and uncertain legal regulations and lack of fiscal incentives do not contribute to conducive environment for non-profit sector development;
• Unstable funding, lack of fundraising skills and management skills – lack of finance and equipment, unstable and insufficient funding sources are the main sectoral problem. Apart from several seminars, there were no opportunities to acquire necessary fundraising skills and non-profit management skills;
• Lack of training and professionalizm - organizational structure often relies on insufficiently educated staff lacking knowledge of administration, prioritization, design and implementation of programs and activities;
• Insufficient exchange of information and co-ordination – only a very small number of organizations publish bulletins and reports. The number of journals and brochures on local and international experiences in the non-profit sector, as well as other funding sources and conferences is also insufficient. This has produced autarchic and closed organizations, resulting further in overlapping activities and conflicts.
  

NGO PERSPECTIVES – recommendations for NGO development in the FRY

1. the number of NGOs is rapidly expanding, not only in major cities, but also in provincial and rural areas;
2. the legal status of NGOs is still unsatisfactory, because legal regulations dating from the previous system are still being used, although they have not been adjusted to the Constitution. There is a gap in legal provisions regarding international NGOs, as well as the lack of fiscal incentives for the non-profit sector development;
3. the predominant fields of activity of the non-profit sector in the FRY are: environmental protection, humanitarian issues, and local community development;
4. cooperation and networks are weak and include only 49 % of NGOs;
5. communication is also weak as only 68 % of organizations have access to a fax machine; 19,3% to e-mail; and 48,5 % of organizations have their own publications;
6. funding sources are restricted and limited, because of the weak economy; there is no tradition of individual endowments; international assistance comes from very few sources.

All the above indicates that NGOs in the FRY have reached a phase of development, critical to their survival, yet many organizations are bound to disappear without further assistance, due to a series of problems.
Two scenarios are possible for the future development of NGO. The first one is a negative scenario, whereas the second is a positive one.
The negative scenario is based on the assumption that the isolation of the country continues and leads to further decrease in interest of the citizens and the international organizations for investment in the non-profit sector development in the FRY.
The second scenario is more realistic and probable. It is based on forecasts and expectations of an increased interest for investment in the non-profit sector, strengthening of the civil society and democratic processes, due to a discrete presence of international organizations in the FRY, and to a better understanding of reality and the fact that problems cannot be solved unless positive, democratic processes are given support.

The support should target four key areas in which local NGOs in the FRY lack capacity:

1. NGO infrastructure building – all research on non-profit sector highlight infrastructure as the main weakness of the non-profit sector in Eastern Europe, despite targeted assistance. The situation in the FRY is even less favorable. Lessons learnt throughout Eastern Europe should be applied. In addition to technical and material assistance, consultancy services, expert and educational assistance should be provided;
2. Assistance in NGO training and education – many years in a passive and closed society have led to the corresponding ways of thinking and behavior, and the inability to respond to challenges and requirements of complex social conditions. Lack of experience and knowledge of NGO activities is evident. Therefore, it is necessary to organize and facilitate education and training programs on fundraising, project design, strategic planning, NGO management, crisis management and other issues for NGO professionals and volunteers.
3. Support in project financing – for projects oriented towards the development of market economy and democratic parliamentary system;
4. Assistance to NGOs focused on information dissemination, development centers and assistance to local NGOs. “The experience of Mott’s resource centers in Bulgaria, Czech Republic, Estonia, Hungary, Poland and Slovak Republic from 1993 to 1995, shows that these centers have made a significant contribution to a more rapid development of the third sector in Central and Eastern Europe¹⁴.”

The present analysis has shown the growing potential of the NGO sector in the Federal Republic of Yugoslavia. Simultaneously, it has identified the need for further diversification, skill development, capacity building and networking. International assistance targeted to the above mentioned activities would serve as an impetus for NGO development and the strengthening of civil society in the Federal Republic of Yugoslavia.

1. Daniel Siegel & Jenny Yancey, “The Rebirth of Civil Society”, The Rockfeller Brothers Fund, New York 1992.
2. For details, see: Žarko Paunovic, “Razvojni ciklusi nevladinih organizacija u SR Jugoslaviji”, Selected papers Granice izazov interkulturalnosti, Božidar Jakšic (ed.), Forum for Ethnic Relations, Belgrade, 1997.
3. Nevenka Stanisavljevic, “The Profile of the Voluntary Sector in Postcommunist Countries: Case of Yugoslavia”, Družboslovne rasprave, Volume XI, Number 19-20, Ljubljana 1995.
4. This terminology was used for different forms of citizens’ self-organization; it is still present in the relevant legal regulations (Law on association, social organizations and political organizations established on the territory of the SFRY; Law on political organizations in the SR of Serbia; Law on social organizations and citizens’ associations in the SR of Serbia; Law on citizens’ associations in the SR of Montenegro).
5. Such as associations and alliances of the blind and disabled persons, pensioners, citizens’ associations for the prevention of certain diseases, etc.
6. Nevenka Stanisavljevic, “The Profile of the Voluntary Sector in Postcommunist Countries: the Case of Yugoslavia”, Družboslovne rasprave, Volume XI, Number 19-20, Ljubljana, 1995, p. 98.
7. For more details, see: Bojana Šušak, “Alternativom protiv rata”, Republika, Vol. 131-132, 1-31. Jan. 1996; thematic issue Republika “Anti-war Actions”, Belgrade, February 1993; Žarko Paunovic, “Mirovne aktivnosti u Srbiji - izmedu inicijativa i pokreta”, Filozofija i društvo VII, Belgrade 1995.
8. Rhoda Lois Blumberg, Organizations in Contemporary Society, Prentice-Hall, INC., Englewood Cliffs, New Jersey 1987.
9. Alberto Melluci, “Kraj društvenih pokreta”, Naše teme, Vol. 10/1984, Zagreb, pp. 1846-47.
10. Voluntary Sector Research Group; Center for the Development of Non-profit Sector.
11. Statisticki godišnjak Jugoslavije za 1994, Savezni zavod za statistiku, Belgrade, 1995, p. 45.
12. For more information, see the brochure Z. Vasilevska, N. V. Šahovic, B. Petrovic, Z. Paunovic, “Kako osnovati i registrovati nevladinu organizaciju”, Center for the Development of Non-profit Sector, Belgrade 1997.
13. Hence, the Center for the Development of Non-profit Sector from Belgrade has presented the problem to the competent authorities. It has also offered possible solutions in order to overcome the problem without further delay.
14. Susan Willoughby, “The Impact of NGO Resource Centres in Central and Eastern Europe”, Report to the Charles Stewart Mott Foundation, Charities Evaluation Services, London 1996.