Governance Approach in Asia’s Third Sector: Adapted Western or Modified Asian?

In the first decade of the twenty-first century, there are 50,000 international non-governmental organizations (NGOs) worldwide—some with grass-roots engagement. There are also about 7,000 microfinance institutions (MFI) in the world serving 16 million people. There are hundreds of thousands of undocumented small, traditional, non-incorporated organisations. Since the Second World War (WWII) the developed world has provided US $2,300 billion in international aid, and at present around 10–20% of the annual ODA (Official Development Assistance) of US $60 billion is disbursed through the third sector. Further, many Asian governments have been providing tacit supports in the expansion of philanthropy and the third sector, and also in improving the latter’s capabilities for strategic benefits. The growth and functioning of the third sector and its contribution to development, however, depend on the stage of political infrastructure of the country concerned (cf. Davis and McGregor, 2000). There are vibrant and numerous third sector organisations (TSOs) in Asian countries, but due to a weak political infrastructure their impacts on development in these countries are likely to be minimal.