New partnerships for social development: business and the third sector

One of the main issues for Latin America now that it is entering a new period of economic growth is the process of speeding up social development to catch up with economic trends. This may be seen by some as a highly profitable investment, but by most as a moral obligation. A long history of exploitation and the most recent decades of misgovernment have provoked a legacy of social injustice and disparities incompatible with the region's economic potential.

Structural adjustment policies impose a significant reduction in the size of governments which have shown an unequivocal tendency to retreat from their responsibilities regarding the social sector. Current trends of the new world order raise many concerns regarding the social perspectives of the less privileged layers of the population.

Besides the new economic opportunities, redemocratization of the region has led to a new socio-political environment in which paternalistic patterns have given way to a more participatory and mature relationship between government, civil society and business.

The so-called third sector has become of increasing importance and is growing rapidly in most countries. Business is also assuming new roles in terms of its responsibility towards social development. There is a change in culture and there are new opportunities to develop innovative forms of participation. The retreat of the State is opening up a new niche for the third sector and business to establish partnerships that can speed up social development without the risks of the heavy paternalistic and patronizing influence of governmental branches. Overall, one can observe a shift in responsibilities. Partnerships will involve the three actors, with government participating heavily in financing the operations of the third sector, while business lends its’ efficiency as well as material resources.

The business sector in Latin America is rapidly learning the social responsibility of participating in community initiatives and the benefits that such an approach can bring. Foreign companies have played an important role in bringing new values, strategies and experience of this participation. Local businessmen are adopting these values and adjusting them to their realities. The new economic and political environments have created a new sense of citizenship and there is an observable advance in the approach that business is taking in relation to the potential of its participation and of its responsibilities regarding social growth and development.

Corporate philanthropy -- or community relations, or corporate citizenship, as the local culture prefers to call it -- assumes several forms. Grantmaking is still the least frequent as companies prefer to maintain tighter control over the use of resources, either by operating their own projects in a joint effort with target communities, or by establishing partnerships with small organizations of the third sector. Stimulating volunteer work of their employees is also a form of participation.

More recently, in countries like Argentina, Brazil, Colombia and Mexico we have witnessed the emergence of associations of grantmakers and philanthropists, similar to those of the United States. Through these organizations, corporations, corporate foundations and independent foundations can share their experiences and values, coordinate their efforts and exert influence in the social and political environment.     

Population growth and development in the third world: The neocolonial context

Less developed countries (LDCs) that were colonies of other nations continued operating under the same social and political structures set up by the former ruling nations. The small minority of elites in the LDCs held on to the power acquired during colonial times. In order to preserve their political and financial status after independence, they maintained their close linkages to the capitalist nations and their multinational corporations (MNCs). The elites did not generally have popular support, however. These capitalist nations and their commercial interests continue to dictate most LDCs development process which supports the financial interests of the MNCs and the local elites and not those of the majority, the poor. The poor realize that they are trapped and unable to break away from the economic and political structures, therefore, to assure some form of security, they have many children which exacerbates their poverty. Yet population control policies based on Malthusian theory and those that rely on such undimensional, technical approaches as family planning alone cannot cure the multidimensional social problems of high population growth and poverty. Neither the Malthusian nor Marxist theories totally explain the situation in the LDCs or even provide workable solutions. Research on population and development in LDCs needs to address both the Malthusian concern for the problems posed by high growth rates and the Marxist critique of class struggle in development trends. To eliminate the trap of poverty and dependent economies, each country must design its own remedies based on its history, culture, and geography and alter the prevailing social, economic, and political power structures in favor of the poor. 6 propositions that must be modified to each nation's particular problems and needs are presented to guide LDCs in formulating or reformulating policies to alleviate the problems of population and poverty.     

Organizational development in the third world: values,closeness of fit and culture-boundedness(1)

This paper seeks to counterbalance some common arguments about the role of organization development (OD) in Third World settings. OD is a value-laden technology and this raises the issues of the closeness of fit of specific OD approaches or designs to different cultures, histories and settings. Most organizational theorists recommend a close fit, based upon an overall characterization of OD and estimates of the features of macro-cultures such as nations or regions. This paper urges a more differentiated perspective, based on evidence that OD works, on balance, in a broad range of contexts. Specifically, OD designs/approaches are not homogeneous, and neither are the nation-states or organizations in which OD is applied. The paper suggests a number of ways in which OD practitioners might become more sensitive to different contexts and thereby improve their judgments about the advisability of making OD interventions.

Since its earliest days, OD has been concerned with the issue of degree of fit. OD is a normative, re-educative strategy,⁽²⁾ and, for that reason, practitioners agree that “there” will be different from “here” in pervasive ways. Thus many ODers speak of “a new social order at work”⁽³⁾ and envision a new tomorrow, either in progressive steps, or via some frame-breaking effort. The key issue underlying how to get from “here” to “there” involves choices of designs for learning or change which are sensitive to beginning “here” and also capable of inducing systemic movement toward “there.”

Four emphases will carry this paper beyond these generalizations about why and how OD is concerned with the closeness of fit between its values and different sites of application. An initial section briefly describes OD as value laden, and hence as potentially at cross-purposes with other value laden aspects of sites of application -- national or organizational cultures, managerial climates, small work groups and so on. The second section describes three models of the relationship between OD and existing cultures, climates or styles. In addition, extended consideration is given to four generalizations about OD in Third World settings, in which closeness of fit and culture-boundedness are of special significance. The generalizations relate to success rates, the primacy of process and interaction in OD, the significance of a systems perspective, and an emphasis on specific OD sites and OD interventions. The final section presents my personal views as practitioner about closeness of fit and how to minimize cross-cultural blind spots.

Neither OD designs nor cultures are homogeneous; and change objectives can differ radically from case to case in their urgency and acceptable probabilities of success, with each case requiring judgments to be made about closeness of fit. The available literature tends to oversimplify in posing such questions as:

Is OD exclusively culturally appropriate to North America?

Does nation A have a culture that constitutes a close fit to OD values/interventions?

Are close fits preferable to distal-fits?     

Regeneration,partnerships and communities: Towards an ideology for the third way

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