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Mushrooming orphanages
The use(lessness) of children’s homes in Nepal
By: Wilko Verbakel and Susan van Klaveren

Many hundreds so-called orphanages are found in Nepal, raised by Westerners who want to do a project by themselves. They are supposed to be a new home for kids without parents. However, in reality some children’s homes are run as businesses or even fronts for criminal activities while the majority of sponsored children are not even orphans. Does this “do-it-yourself” help of Western NGOs really contribute to development and to reduce poverty?

Many foreigners want to help the increasing number of disadvantaged and displaced children of Nepal and together with Nepalese partners they start their own orphanage or children’s home. Last year their number increased to over 1,000 and 400 can be found in the Kathmandu Valley alone. If each of them houses 30-40 children, it means that, in the valley alone, around 15,000 children live in such institutions, far away from their families.
Only a small portion of these children is really an orphan. A study funded by USAID in 2005 among 335 “orphanages” in Nepal showed that only 20% of the 8,821 children in the study lost both parents while over 50% of them still had both parents alive. With the huge increase in orphanages over the last three years, the number of non-orphans has most likely increased. Only 11% of the orphans end up in an orphanage due to conflict related reasons. Most of them live in the street because their parents cannot feed them properly or because they are left alone by the parents and the other family members are too poor to feed and educate them. We can even question whether the number of children homes is increasing because the number of needy children is increasing, or whether it works the other way around: the availability of free food and lodging attracts more disadvantaged children.

‘Orphans’ become adults
At first sight it seems a noble venture to bring poor street children to a children’s home. But is it really an advantage in the long run for those children, to grow up in an orphanage? In some homes they still get little to eat and are forced to go begging in the neighbourhood. Other homes, supported by Western organisations, are better organised. But in spite of leading a relatively luxurious life, and having exposure to short term foreign volunteers, the children grow up without family ties, outside their culture and without knowledge of their own caste/ethnic background. In a country as Nepal, family, culture and ethnic background play an important role in life. For this reason, staying in a children home can even have a negative effect on the long term. When the children are about eighteen years old, they suddenly become responsible for their lives outside their safe home. For most of them it means the end of prosperity and no possibility to rely on their family background and ethnic culture. Since the children home business is booming since only a few years, there is not much experience how well children can cope with this situation. There is a large risk that after another ten years, these children will have a higher risk of suffering from identity crisis and behavioural problems. Considering the large number of children in children homes in Kathmandu, these ‘displaced children’ could become another problem for the capital.
Another problem is mismanagement and lack of funding: if a home has to suddenly close down the
children end up in a worse situation than before: now they have truly become orphans.

Donations
Typical variable cost for food, lodging, clothing and education for an ‘orphan’ are at least NRs 3,000 per child per month. Since some children’s homes are in fact a “business”, some may ask the donors up to NRs 9,000 per month. To house 40 children, the average cost amounts about NRs 16 lakh per year, excluding the cost of the house. In spite of the high land prices, every organisation wants to purchase its own piece of land and construct its own building. Typical prices for such constructions vary between NRs 80 and NRs 200 lakh.
Amongst Dutch NGOs active in Nepal it is popular to establish a children’s home. Around fourty Dutch NGOs contribute to or run their own children’s home, which means they jointly are responsible for an investment of more than three million euro or NRs 30 karod. Moreover, they yearly have to raise more than NRs 5 karod to cover the variable cost. All this money is collected in the Netherlands from donors who want to contribute to poverty reduction. Unfortunately, children’s homes can never lead to poverty reduction because they will never be self-sustainable.

Profitable business
It is a public secret that people who invite Westerners to start a children’s home, often have a personal interest. Being the director of a children’s home means a solid source of income and status in the community. Many village people are keen on children’s homes or a hostel near a school as they enable their children to visit a good school in the city. Instead of investing in rural education, NGOs bring children to a home far away from the village. In fact, it would be many times cheaper and much more effective to pay an extra teacher in the village and to improve the infrastructure of the local school. With an extra investment of NRs 1 lakh per year for a local school all school going children in the village will profit, while this amount covers the expenses of only two children in a hostel or children’s home.

Criminal activities
Children’s homes also attract other problems. Some people trade street children between orphanages. For a few thousand rupees children are taken from their families or homes and sold at higher rates to an ‘orphanage’. Since foreign donors will pay on average NRs 5,000 per month for a child the management readily invests in the ‘procurement’ of another student. Illegal adoption is another profitable form of trade. Foreigners have been found paying thousands of euros to children’s homes to adopt an ‘orphan’. Some orphanages are even cover-ups for even worse practices. Last year, a Dutch director of an orphanage was jailed after it was found that he sexually abused almost all children from his home. Like other Asian countries, Nepal is prone to attract paedophiles. This is a very serious issue that the Nepalese government needs to address by making strict rules and improved monitoring of the homes. Furthermore, there are stories of orphanages that sell children to the Indian sex industry or circuses. Last but not least, there is widespread financial abuse by the management of children’s homes. Last year, a Dutch family lost ten thousands of euros when the Nepalese director of Ganjala Children Home ran away with the money. Despite lodging complaints with the Social Welfare Council and Children’s Welfare Board the home was reregistered as “Peace and Beautiful” and continues to exploit well intended sponsors.

Responsibility of donors
Unfortunately there is no law that addresses legal responsibilities if a children’s home fails. Who will be held responsible if the children are abused, or when they end up on the street? Who takes care of the children if the orphanage goes bankrupt?
Still, raising funds for children’s homes seems a piece of cake: the picture of an impoverished skinny child raises more funds than the image of a hard working parent who needs some extra support to feed and educate his children. But individual donors should accept their responsibility. Helping orphans is a noble cause. But if relatives are too poor to feed or educate the kids, the donor should question whether placement of the child in a children’s home is the best solution. Contributing to support the family – not by giving cash, but by providing means to generate income – the whole family will have food to eat and is able to send their children to school. The money that is spent for one child in a children’s home during one year (400-750 euro) is enough to support several families. For instance, by providing one buffalo worth 250 euro to a poor family, enough money can be earned from selling milk and offspring. This is a much more effective way of poverty reduction.

Hobby home
Having a few orphanages to cater for abandoned children is helpful, but the present number of more than 1,000 is really too much. Those who want to help Nepal are advised to join an existing NGO with a track record in running community based developing projects. Always be aware of the long-term effects of a project, both at the individual and the community level. For those who establish a project or a home, their project is a satisfying hobby, but for the receivers it determines their future. The best projects address the causes of poverty, and aim at self-sustainability. Only independence and self-sustainability can break the vicious cycle of poverty.

 



Wilko Verbakel (PhD) and Susan van Klaveren (MA) are respectively treasurer and president of a Dutch NGO, the International Council for Friends Of Nepal (ICFON). This NGO advises, finances and verifies developing projects that are carried out in collaboration with Nepalese partners. ICFON is run by volunteers. More information can be found on www.icfon.nl .
A similar article has been published in a Dutch journal for international cooperation, ViceVersa (april 2007)