35 years since the World Bank plan that began funding and working with NGOs

In 1991 the World Bank funded and worked with NGOs, but it did so under Operational Directive 14.70, which required the consent of the recipient country's government and channeled money through borrowing governments, not through direct grants.

The World Bank does not hand money directly to NGOs. That is the general rule, and in 1991 it was applied quite strictly. The institution transferred funds to borrowing governments, and it was those governments who subcontracted or redirected the money to local and international organizations to carry out specific projects. NGO participation also required the approval of the recipient country's government.

## The directive that shaped the relationship with NGOs

**Operational Directive 14.70** was formally adopted in **August 1989** and was the rule that directly governed cooperation and funding with NGOs during **1991**. It was not an open door: it required that the organizations' participation have the consent and agreement of the recipient country's government.

That requirement made the government a mandatory filter. Without its approval, there was no project. The rule reflected the institution's shift in focus toward civil society in the late 1980s, but it did so with the state as a necessary intermediary.

## Social funds and the environment as channels

During **1991**, the use of Social Investment Funds became widespread, serving as the main channel for transferring millions of dollars to NGO-led subprojects. Among the examples cited are Bolivia's Emergency Social Fund and microenterprise projects in **Pakistan**.

That same year, the **Global Environment Facility (GEF)** was created. From the outset, the pilot fund included a strategic role and resources earmarked for the activities of NGOs dedicated to ecological conservation and climate change. The **Small Grants Programme (SGP)**, active since **1983**, continued to release smaller-scale direct funding to civil society organizations through the Bank's Country Offices, with the stated aim of promoting dialogue and community empowerment.

## A domestic scene in Washington

In **1991**, a visitor in **Washington** ran into senior World Bank staff at a social gathering. When he asked what NGOs were, the conversation stalled and drifted to another topic. A relative who worked at the institution later told him they were important, without giving further details.

That episode, recounted by **Alfred Nassim** on **September 28**, describes a perception: that countries had been naive. It provides no documentation on money flows or on the terms of the contracts. What remains verifiable is the **1989** rule, the indirect funding route, and the programs operating in **1991**.