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This paper describes the characteristics of the relationship with nongovernmental organizations (NGOs) and the State. In some countries NGOs are major contributors to development processes, however, this is not uniform. In a number of countries, NGOs are regarded suspiciously by governments because they are weak or play an oppositional role. A number of factors influence the development impact of NGOs, many of which are determined by the relationship between the NGOs and the State. This paper concentrates on issues which affect the efficacy of NGOs, the attainment of governments; poverty reduction and other social objectives, and collaboration between NGOs and the public sector. It explores the main elements of government policy and practice which affect NGOs and which could foster a more conducive environment for positive NGO contribution to devlopment. The principal avenues by which governments can influence the operational environment for NGOs are the nature and quality of governance, the legal framework; taxation policies, collaboration with NGOs, public consultation and information, coordination, and official support.
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