Corporate Governance Of NGOs And Its Effects On Public Service Delivery And Economic Growth:The Case Of Mozambique

Corporate governance,donors funding and financial sustainability of NGOs have always been a crucial factor to development of Mozambique.At the same time,the gaps from the government in provision of public services to the communities continues to be an obstacle to economic transformation.Many empirical studies have shown controversial results of NGOs’ governance and their contribution to provide services in the grassroots.Some studies have concluded that NGO funding have a negative impact on economic development;while others have shown that NGOs with good financial governance can serve as a "helping hand" for the communities.Given the ambiguity in the results of previous researches,this study examined the implications of the NGOs corporate governance to donors’ compliance and analyzed the contribution of NGOs funding in the economy as well as the impact of these funding to fill the gaps of the government in the provision of public services.The findings may contribute to a consistent practice of NGOs governance based on donors’ directives to improve the management and consequently to provide best public services to the community.From the collected data,a questionnaire reflecting the model with specific variables was sent to 343 respondents.The answers from theses respondents of different NGOs was consistent in evaluating the corporate governance to financial donor compliance.For the empirical models we used linear regression model in panel data from 1999-2017 in 15 districts of 11 provinces.The result of the research also suggests that the donors are attracted by the level of the NGOs’openness to the communities and financial governance.From the knowledge of best practices in attracting funding,it was proven that the robust corporate governance helped the NGOs to have a good financial compliance with their donors.Regarding to the NGOs funding on the economy,estimation results using both VEC and RRE model showed that in a country where there is a bad institutional governance among the NGOs,donors are reluctant.This fact affects negatively the funding inflows,the community transformation and the economic growth.Both empirical and theoretical evidence showed that high levels of negative corporate governance(mis-governance and corruption),have a negative impact on NGOs funding inflows.However,in reality these results on NGOs funding inflows and their strategies of governance,did not show a clear picture of community transformation that was expected from this study.