Navigating Financial Sustainability and Influence Dynamics in Yemen: Unveiling the 'Sheikh' Organizations in Conflict-Affected NGO Landscapes

• In Event: Financial Sustainability and Influence During Conflict

Abstract

This research paper focuses on the financial sustainability of local non-governmental organizations (NGOs) operating in conflict-affected Yemen and the influence of what we refer to as "Sheikh" organizations, which are international/national and local NGOs possessing a well-established reputation and influence that surpasses their counterparts. These organizations demonstrate financial and managerial sustainability due to their extensive history and practices that enhance their ability to attract donor funding. The term "Sheikh" is used metaphorically to draw parallels with the dominance and influence tribal chiefs hold in the Arab region, especially in Yemen. In essence, Sheikh organizations are those with a significant and influential presence in the NGO sector, much like tribal chiefs hold sway in society.
In recent years, the issue of financial sustainability for NGOs has gained global attention, particularly in conflict-affected regions like Yemen. The reduction in donor funding from advanced economies to developing nations and the increasing demand for such funds have compounded the challenges faced by local NGOs. The study cites a significant decline in external funding for Yemeni NGOs, which has been further exacerbated by international organizations acting as intermediaries for fund disbursement, citing the perceived incapacity of local entities to manage funds efficiently. The research underscores the importance of financial sustainability for NGOs, not only for their own operational continuity but also for their pivotal role in humanitarian and developmental responses in vulnerable communities. Despite some progress in partnerships between international and local NGOs and training of local staff, the prevailing imbalances in donor relationships persist. The study cites a stark contrast in donor funding allocated to international NGOs versus local and national NGOs, which hampers the financial sustainability of the latter.
The study aims to fill a gap in the academic research on the financial sustainability of local NGOs in conflict-affected areas. It employs a qualitative exploratory approach, combining primary data from 40 interviews with administrative staff from various organizations and a review of publicly available literature and reports. The paper is organized into sections covering a literature review on NGO financial sustainability, an explanation of Sheikh organizations and their dominance, an overview of the Yemeni NGO landscape and its challenges, the research methodology, interview analysis results, and concluding observations and recommendations. In ending, this research sheds light on the power dynamics and financial challenges faced by local NGOs in Yemen, emphasizing the need for a paradigm shift in donor support. It advocates for providing unrestricted funding to enable self-sustaining initiatives and promoting equitable collaboration between Sheikh organizations and lesser-known local entities. The study aims to empower emerging organizations and recalibrate power dynamics within Yemen's NGO landscape to foster resilience and meaningful engagement.

References

References:
1. Adem, S. A., Childerhouse, P., Egbelakin, T., & Wang, B. (2018). International and local NGO supply chain collaboration: an investigation of the Syrian refugee crises in Jordan. Journal of Humanitarian Logistics and Supply Chain Management, 8(3), 295-322.
2. Ahmed, A. H. A., Zainol, Z., & Mokhtar, N. (2022). An insight of accountability practices in non-governmental organizations (NGOs): The case of Yemen. International Journal of Research in Business and Social Science (2147-4478), 11(1), 178-186.
3. Amegboh, J. E. (2021). Peacebuilding from the Bottom: Local Youth Non-Governmental Organizations Strategies to Prevent Terrorism and Violent Extremism in Mali (Doctoral dissertation, George Mason University).
4. Bowman, W. (2011). Financial capacity and sustainability of ordinary nonprofits. Nonprofit Management and Leadership, 22(1), 37–51. https://doi.org/10.1002/nml.20039
5. Britannica, T. Editors of Encyclopedia (n.d.). sheikh. Encyclopedia Britannica. https://www.britannica.com/topic/sheikh
6. Dagher, R. (2018). Legitimacy and post-conflict state-building: the undervalued role of performance legitimacy. Conflict, Security & Development, 18(2), 85-111.
7. David, W. (2018) Catalysing Conflict Sensitivity in Yemen: Enabling More Effective Assistance, Seton Hall University/Search for Common Ground.
8. Davis, J. M. (2019). Real “non-governmental” aid and poverty: Comparing privately and publicly financed NGOs in Canada. Canadian Journal of Development Studies/Revue canadienne d'études du développement, 40(3), 369-386.
9. Davis, J. M., & Swiss, L. (2020). Need, Merit, Self‐Interest or Convenience? Exploring Aid Allocation Motives of Grassroots International NGOs. Journal of International Development, 32(8), 1324-1345.
10. Elkahlout, G., & Elgibali, K. (2022). From theory to practice: A study of remotely managed localised humanitarian action in Syria. Journal of Peacebuilding & Development, 15(2), 235–249.
11. Elayah, M., Gaber, Q., & Fenttiman, M. (2022). From food to cash assistance: rethinking humanitarian aid in Yemen. Journal of International Humanitarian Action, 7(1), 1-13.
12. Elayah, M. A. A., & Schulpen, L. W. M. (2016). Why do national NGOs go where they go? The case of Yemen.
13. Elayah, M., & Ahmed, N. (2022). Humanitarian Aid in Yemen: A Crisis of Sovereignty and Inevitable Harm. In Reconciliation, Heritage and Social Inclusion in the Middle East and North Africa (pp. 173-191). Cham: Springer International Publishing.
14. Elayah, M. A. A., Abu-Osba, B., & Al-Majdhoub, F. (2018). Building a civil service system for Yemen. Global encyclopedia of public administration, public policy, and governance, 1-15.
15. Elayah, M. (2023). Participatory developmental approach and the implementation of international aid policies: Yemen as a case study. Development in Practice, 33(3), 255-266.
16. Elayah, M., & Verkoren, W. (2020). Civil society during war: the case of Yemen. Peacebuilding, 8(4), 476-498.
17. Francois, E. J. (2014). Financial sustainability for nonprofit organizations. Springer publishing company.
18. Gedeon, I. (2021). Assessing strategies of financial sustainability of non-governmental organisation. International Journal of Scientific and Research Publications (IJSRP), 11(11), 175–178. https://doi.org/10.29322/ijsrp.11.11.2021.p11922
19. Gyamfi, P. (2010). Financing local non-governmental organisations in Ghana: issues and challenges. Master’s thesis. Accra: Kwame Nkrumah University.
20. ICVA. (2021). Localisation in humanitarian leadership - ICVA. Retrieved from https://www.icvanetwork.org/uploads/2021/07/ICVA_MENA-Localisation-Report.pdf
21. Karman, T. (2017). Yemeni Women and Civil Society in Light of Political Transformations and War. Brown J. World Aff., 24, 211.
22. Kania, J., & Kramer, M. (2011). Collective impact (pp. 36-41). Beijing, China: FSG.
23. Leon, P. (2001). Four pillars of financial sustainability. Arlington: The Nature Conservancy.
24. Lewis, T. (2011). Financial sustainability essentials. Course handbook. Oxford: Management Accounting for Non-Governmental Organisations (MANGO).
25. Lotsmart, N. (2007). The Challenges of Non-Governmental Organisation in Anglophone Cameroon. New York: Nova Science Publishers Inc.
26. Michael, M. (2018, December 31). AP investigation: Food aid stolen as Yemen starves. AP NEWS. Retrieved April 29, 2023, from https://apnews.com/article/famine-bcf4e7595b554029bcd372cb129c49ab
27. OCHA. (n.d.). Financial Traffic Service. Yemen. Retrieved from https://fts.unocha.org/countries/248/summary/2023
28. Pack, J. (2022). Libya and the global enduring disorder. Oxford University Press.
29. Righting the wrong - s3.amazonaws.com. (n.d.). Retrieved April 28, 2023, from https://s3.amazonaws.com/oxfam-us/www/static/media/files/Oxfam_Righting_the_Wrong.pdf
30. Saungweme, M. (2014). Factors influencing financial sustainability of local NGOs: the case of Zimbabwe.
31. Sanaa Center for Strategic Studies. Reem Mujahid. (2022). Tribes and the State in Yemen. Retrieved from https://sanaacenter.org/ar/publications-all/main-publications-ar/16370#shywkh_mn_wrq_kyf_adft_aldwlt_albnyt_alqblyt
32. SIDA, Yemen Humanitarian Crises Analysis 2018. SIDA, 2018, p. 8. Available at: https://rb.gy/aardgl
33. Summary localisation in humanitarian leadership - ICVA. (n.d.). Retrieved April 28, 2023, from https://www.icvanetwork.org/uploads/2021/07/ICVA_MENA-Localisation-Report_SUMMARY.pdf
34. Tamdeen Youth Foundation. (2022). Measuring humanitarian localisation in Yemen. (n.d.). Retrieved April 28, 2023, from https://www.icvanetwork.org/uploads/2023/02/Localisation-Baseline-Report-in-Yemen-ENG.pdf
35. Waiganjo, E.W., Ng’ethe, J.M. and Mugambi, D.N. )2012(. An investigation into the strategies adopted by non-governmental organisation in Kenya to increase financial sustainability. International Journal of Current Research.

Authors

• Moosa Elayah, Doha Institute for graduate studies

• Lau Schulpen, Radboud University Nijmegen