The development paradigm is constantly changing in the face of diverse interconnected factors such as globalization. These changes are deemed to affect NGOs poverty reduction efforts. NGOs have the objective to pursue the needs of the poor and keep multiplying in numbers. However, there is a significant proportion of people still living in poverty, despite progress in cutting extreme poverty. Thus, leading to waning legitimacy of NGOs amidst their increasing popularity. In view of the above, the objective of this research was to assess the significance of NGOs by thoroughly examining their operations towards poverty reduction and its integral components, instead of only examining their impacts.
This thesis applies qualitative method, through interviews and case study. It captures the perceptions, activities and experiences of three selected Ghanaian and Danish NGOs each. The diversity of Ghanaian and Danish NGOs, enriched the study by capturing variety of NGOs’ operations as development actors. Theoretical instruments that informed data collection and analysis include Civil Society, NGO, Resource dependency, and Empowerment theories. This enhanced provision of insight on the character and trajectory of NGOs’ poverty reduction activities.
The study concludes that NGOs are indeed still significant to poverty reduction in Ghana under an extensive civil society space. They do this by playing a critical role, considering their prevailing revamp of developmental approaches in reducing poverty. However, their rapidly diminishing credibility remains a problem due to several issues depicting ambivalence, and suspicious behaviours. Their constructive complementary relationship with the State, is characterised by amiable cooperation; strong voice of NGOs in demanding accountability to the poor; and independence of NGOs from the State. Their relationship is not void of disparities but is amiable, in light of tremendous improvement from tensed relationship in the revolutionary days of NGOs.
Furthermore, dependence on global funding for survival constrain the resources of NGOs in Ghana. Since Ghana has declared middle income status, that global funding channel is drying up. Ghanaian NGOs compared to Danish NGOs suffer from some level of financial constrain. Aside being an indispensable financial muscle, donors were identified as pivotal to poverty reduction, due to their influence on development transformations of NGOs. This resource challenge can be overcome by effective diversification of NGOs’ resource channels, to support their activities.