THIS PAPER CONSIDERS the role of NGOs and the state in Latin America, discussing the dramatic changes that these groups have undergone, the present crisis in which they find themselves and their potential future role. The author considers critically aspects of current NGOs' work, in particular as they seek to redefine their relationship with the state. Alternative solutions, new ways of approaching rural development and new methods of financing are also considered. The author highlights the responsibility of funding agencies in permitting NGOs to maintain their identity and in supporting them in the search for alternatives. The overall goal of the paper is to provoke debate on the critical need to reassess the role of NGOs and their relationship with civil society and the state, in order to preserve the “essence” of what it is to be an NGO. If this does not take place, the author argues, NGOs will disappear.

Two themes are central to the paper: recent changes in the relationship between NGOs and the state, and the future role of NGOs. The paper argues that current social, economic and political changes in the region are forcing NGOs into a crisis of identity, legitimacy and sustainability. NGOs are criticized for failing to respond to the new economic context in rural areas and thereby not addressing rural poverty effectively. As they increasingly implement projects designed by other actors, they lose their own identity and independence. The author proposes some key factors as a means of redefining their role: strengthening their relationships with popular organizations; substantially improving the quality of their work; reassessing their relationship with the state; and improving transparency.