Compliance with the Principles of Governance for NGOs
within the Egyptian Capital Market Association (ECMA)
I. Defining the Concept
According to the survey conducted by the Organization for Economic
Cooperation and Development (OECD), the term Governance refers to
prudent management. The concept is a product of an emerging global
culture that supports the increased involvement of the different
civil society sectors with the government in formulating and
implementing public policies. It is a reflection of the interaction
between the state, civil society, and the private sector to achieve
Researchers at the United Nations Development Programme (UNDP) have
put together the principles of good governance as follows:
1. Respecting the Rule of Law and Fairness.
3. Responsiveness towards all parties.
4. Consensus Orientation regarding public benefit.
5. Equality between men and women.
6. Efficient, Effective, and Optimum Use of Resources.
7. Accountability of all parties: the government – private sector –
civil society within each other.
8. Strategic Vision and Crisis Management.
9. Efficiency in Providing Services.
10. Legitimacy and being accepted by all.
11. Enablement and empowerment for stakeholders.
12. Tolerance and appreciating the opposite view.
13. Strengthening Communication Mechanisms with stakeholders.
15. Capability in the Mobilization of Resources for social welfare.
II. Governance Indicators in Non-Governmental Organizations
Non-Governmental Organizations (NGOs) must incorporate the values
and trends of governance in their institutional structure. These can
be determined as: the ability to raise funds, internal democracy,
accountability, and enablement.
1. Ability to raise funds for the organization
Raising the necessary funds for operation is the primary difficulty
faced by non-governmental organizations (NGOs). This is particularly
challenging in light of scarce resources and a lack of accurate
accounting systems in addition to different opinions between donors
and NGOs. There are also legal restrictions often imposed on foreign
sources of funding. Therefore, good governance of NGOs for financing
requires a look at the sources and an ability to secure their
continuity as well as availability of alternative sources. In
addition a sound accounting system must be established.
2. Participation and Internal Democracy
An NGO's ability to mobilize individuals' and organizations' efforts
and attract them to become members is an important measure of its
institutional capacities and its ability to achieve internal
democratic governance. There are three levels in this regard. The
first is the level of participation, which refers to the number of
members, their attendance of meetings, their participation in
sub-committees, and their regular payment of membership fees. The
second is the elite turnover rate, which indicates the rate of
change of the NGO's leaders through fair and competitive periodic
elections. The third level involves the rate of female participation
3. Accountability and Transparency
Accountability and transparency go hand in hand within an NGO. Any
progress achieved with either of the two issues leads to the
improvement of the other simultaneously. Accountability means an
organization's leadership will report the details of its activities
to several parties: the government, stakeholders, donors, and
members. Transparency refers to free access to information including
all details of operation inside the NGO as well as sources of
funding, relations with donors, government, and other NGOs.
4. Enablement and Human Resources Development
Enablement within the NGO context refers to improving the members'
and employees' access to available resources. On one level there is
managerial empowerment which promotes the organization to make
decisions throughout the institution. There is also skills
enablement which involves the transfer of skills and providing the
necessary resources to work in an environment of trust and
self-reliance. Finally there is the ability to affect political
decision-making, referred to as political enablement.
III. Compliance with the Principles of Governance at ECMA
The Egyptian Capital Market Association (ECMA) announces its
commitment to the principles of NGO Governance. This is clear
through the following indicators:
1. ECMA's Resource Indicators
• ECMA is self-financed by its members and does not receive any
donations from others than its members. In other words, ECMA relies
on diverse and continuing sources of financing.
• ECMA maintains an accurate accounting system.
2. Participation and Internal Democracy Indicators
• ECMA's members currently include 168 organizations (a total of 468
representatives) and 63 individuals engaged in the different
activities within the capital market.
• The members elect ECMA's board of directors for a six-year term in
a way that a third of board's members are renewed every two years.
• Female members in ECMA amount to 40 organizational representatives
and six individuals.
3. Accountability and Transparency Indicators
• The board of directors drafts a detailed report on ECMA's
activities every year. In addition there are periodic newsletters
that highlight achievements in a continuing manner.
• ECMA's website provides access to all the information related to
its membership, activities, as well as the progress of operations.
4. Empowerment and Human Resources Development Indicators
• ECMA employs a highly qualified administrative team led by a
fulltime Executive Director who effectively cooperates with the
Board of Directors to successfully lead the organization.
• ECMA enjoys strong relations with the different regulatory
authorities and its opinion is frequently sought on matters
important to the capital market and its players.