role of ngos in uplifting the socio economic conditions - journal ...

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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS 

APRIL 2012 

VOL 3, NO 12 

ROLE OF NGOS IN UPLIFTING THE SOCIO ECONOMIC 

CONDITIONS 

A STUDY OF FLOOD AFFECTED AREAS OF PESHAWAR PAKISTAN. 

Abstract 

SHAHZAD KHAN 

Lecturer City University of Science & I-T, Peshawar Pakistan 

SAMRA KIRAN 

Lecturer City University of Science & I-T, Peshawar 

DANISH WASIM 


SAQIB SHAHZAD 


SANAULLAH KIYANI 

MBA Student, City University of Science & I-T, Peshawar 

SYADA FAIZA GILLANI 

BBA (Hons) student, City University of Science & I-T, Peshawar 

NEELAM TAHIR 

BBA (Hons) student, City University of Science & I-T, Peshawar 

The aim of this study was to find out the impact of NGOs Aid on uplifting the socio 

economic conditions of the flood affected areas of Peshawar Pakistan. For research 

purpose some of the effected villages selected randomly i,e Kala Mandi, Jogyian 

and Tarnab form. A non governmental Organization is a legally constituted 

organization created by legal persons that operates independently from any 

government. NGO aid is supported by six factors i.e. food, shelter, health facilities, 

financial help, education and employment. These six factors were independent 

variables of the study. While the dependent variable of the study is the socio 

economic condition. It is an economic and sociological condition that that help a 

family to spend their time in a manner that is socially acceptable. This research is a 

primary research a structured questionnaire was developed for data collection. The 

Population of the study was all households of the flood affected areas of Peshawar. 

The sample size of the study was 45 households. The results of the study shows that 

NGO aid has significant affect on socio economic conditions of the flood affected 

areas. 

Key Words: Food, shelter, Financial Help. Health Facilities, Education, 

Employment and NGO. 

COPY RIGHT © 2012 Institute of Interdisciplinary Business Research 541



APRIL 2012 

VOL 3, NO 12 

Introduction 

Earth's is our home planet made up of different elements and parts like land, air, water 

and life. There always occur some changes which may be natural or caused by humans. 

These natural changes some time causes hazardous event in shape of natural disasters. A 

disaster is a natural or man-made hazard that causes heavy damages in shape of 

physical, human, material or environmental losses that go beyond the ability of the 

effected society to cope using its own scarce resources. A natural disaster is the 

consequence or effect of a hazardous event, occurring when a physical event of natural 

phenomenon, such as a volcanic eruption, earthquake, landslide, storms and floods 

become unprecedented and enmeshed. 

During the third week of July (2010), many parts of Pakistan were struck with a natural 

disaster, the scale of which was unprecedented for the country. It made approximately 

20 million people homeless and killed over 2000 people. According to a UN report 

(2010) the flood caused a damage of $9.7 billion. The country’s agricultural sector has 

been adversely hit causing a massive decrease in the exports for the year and thus 

decreasing national income substantially for the already financially burdened country. 

According to a report of Geo TV Network in 2010, by the end of march 2010 public 

debt of Pakistan reached to an enormous amount i.e., Rs. 8.160 that is equivalent to 56 

% of GDP and 379 % of aggregate budgeted revenue. Of greater concern are the 

negative effects that this calamity will have carried forward to the country’s subsequent 

financial years. To minimize this negative impact, on the country’s following financial 

years, of most critical importance is the early rehabilitation of these areas and people, 

and the restoration of their productivity as soon as possible. 

The flood has brought with it a new wave of an even more severe level of poverty, for 

these already impoverished areas. And thus also threatens the wellbeing of the victims 

and not just their and the economy’s productivity. NGO`s has been empirically proven 

to be effective in contributing the rising of socio economic condition, especially in the 

flood affected areas, and to overall society, especially at the village level NGO`s helps 

both the poor participants and the local economy. 

While conducting this study to identify “Role of NGO`s in Uplifting the Socio- 

Economic Conditions of Flood Affected Areas in Peshawar” for this purpose different 

affected villages selected randomly. Research finds that that NGO`s did a lot of work in 

the rehabilitation. 

This research study aims at empirically substantiating to know the Scio-Economic 

effects of relief efforts provided by NGO`s to flood affects, in the efforts to rehabilitate 

the flood affected areas of Pakistan & their residents. Research was accomplished 

through the use of structured questionnaires, which was administered to flood victims 

thus using the data collected using these questionnaires, and combining it with the 

learning from relevant existing literature, the study able to assess the extent of the need 

NGO`s that they helped the affected people in rehabilitation or not and what was the 

impact of this rehabilitation in the rise Scio- economic condition. 




APRIL 2012 

VOL 3, NO 12 

Literature Review 

According to Alcamo (2003) natural disasters like earthquakes, hurricanes, floods, and 

so on, have massive economic repercussions for the affected regions’ as they wreak 

havoc on the region's economy by causing disastrous loss of life and valuable resources, 

like food, water and housing. Extremely violent storms or geological events like 

earthquakes and volcanic eruptions can wipe out bridges, roads and destroy rail and 

airport systems, disrupting commerce. Arnell (1999)”Disaster and their consequences”. 

He illustrated that a disaster is regarded a cause of disastrous loss of life and valuable 

resources without caring that it is beyond the capacity of our society to cope using its 

own limited resources. Natural disasters also give rise to increased inflation and thus 

worsen poverty for an already worse region. While prices for many commodities, such 

as food, lumber and other building materials often rise, after a natural disaster causes 

destruction on a large scale. In the weeks after Hurricane Katrina hit the Gulf Coast, 

prices for lumber, panels and particle board soared by as much as 50% and remained 

high as demand for rebuilding materials competed with demand from the country's 

already overheated housing market (Chiew 2002). 

Drought (2005) the danger of mounting inflation and the massive loss of human 

productivity undoubtedly block economic growth of the victim regions in the months, 

and even years, that follow the natural disaster. Poverty is multidimensional and thus 

many factors contribute to poverty but its most obvious expression is insufficient 

household income, while there is also a very effective role of NGO`s in developing the 

Socio-Economic condition and reducing the poverty. Well if Socio-Economic status it is 

a measure of economic and sociological behaviors when combined they give total 

experience of a person and an individual or a social and economic position of the family 

in relation to others, which can be based on income, education & occupation. “An 

analysis of a family, family income, education & occupation are examined, as well as 

the combined income, compared with a person, when their attributes are evaluated by 

"Geiser, (2010)” in Status Syndrome: How social standing affects our health and 

longevity. 

Henstra (2010) Socio-Economics means the study of society, or more concisely or more 

narrowly that it is study or practice of different behavioral interactions of individuals 

and groups through social capital and social markets. There are different factors which 

are considered as the basic unites of life. NGO`s also play vital role in uplifting the 

socioeconomic condition of a society by helping them rehabilitating them through 

fulfilling their basic needs like shelter, food clothes etc. As shelter is our basic need and 

it is impossible for human beings to survive without shelter. We need a place we can 

rest our body and mind, which also protect us from different natural elements and 

provide security. While Maslow's hierarchy of needs theory defines housing as a basic 

human need which come under shelter that gives protection from the elements, security 

& stability. Food & shelter are our basic needs they have to be met in order to survive. 

Maslow further elaborated that such needs must be met in order apprehended by Ibem 

(2011), Food & water are what we need to keep us alive, and should be our top concerns 

when trying to build a sustainable community. If these requirements are fulfilled to go 

to other needs that is fabrics and health. This is an important issue, as humans need to 




APRIL 2012 

VOL 3, NO 12 

stay healthy to live and work. If you are feeling healthy you can do anything. "Health is 

a psychological model that attempts to explain and predict health behaviors by focusing 

on the attitudes and beliefs of individuals by Maidment in (1993). 

Mitchell, (1993) organizations at risk: What happens when small business and not-forprofits 

encounter natural disasters Public Entity Risk Institute, Fairfax, VA showed the 

empirical results of a catastrophic of storm / flood that dented the progress gained by 

economic icons in central Bangkok in mid 90’s. This catastrophe caused widespread 

damage to fragile Thai economy already in deep crisis in central due to economic power 

houses slack performance in terms of debit deficit. 

Subramaniam (2009) highlighted the effects of a survey carried on people who have left 

there belongings and houses as a result of being hit by a natural calamity and stated a 

new life at a place totally alien to them. Instead of utilizing there energies in developing 

infrastructure being damaged or destroyed by floods there moved to a totally new place 

and started rehabilitation successfully there without stressing the resources there. 

Methodology 

As this research is focused on the role of NGOs in socio economic condition. All the 

data that for this research is collected through the administering of structured 

questionnaires to the study participants (flood victims included in the study’s sample). 

The study is based on the data of the flood victims’ access to know the role of NGO`s in 

the flood affected areas. The relevant population for this research is all, the flood 

affected areas, and victims of the 2010 Pakistan. For research a random sample of 45 

households (15) per effected village respondents (flood victims) from the areas of Kala 

Mandi, Jogyian & Tarnab Form were selected. 

Theoretical Frame work of the study 

The below figure shows that socio economic condition depends upon Food, Shelter, 

Financial help, Health facilities, education and employment. The theoretical frame work 

of the study includes all those variables that are identified from literature while on the 

basis of these variables regression and correlation as analysis tools has been 

implemented. 




APRIL 2012 

VOL 3, NO 12 

NGO Aid 

Food 

Shelter 

Financial Help 

Health Facilities 

Socio Economic 

Conditions 

Education 

Employment 

Study identified the relationship among above variables. On the basis of these variables 

a conclusion and recommendations is provided. 

Reliability of Scale: 

Research Framework of the Study 

The table 1 below shows the reliability of the data collected from respondents. The 

following table show that the data collected from mentioned sample is reliable and 

respondents answered accurately. Because the variables are exceeding from 70% which 

is the standard of acceptance for reliability. 

Table 1 Reliability of the Scale of the study 

S.No Variables Cronbach’s Alpha 

1 Food 0.659 

2 Shelter 0.682 

3 Financial Help 0.698 

4 Health Facilities 0.697 

5 Employment 0.683 

6 Education 0.760 

7 Socio economic conditions 0.803 




APRIL 2012 

VOL 3, NO 12 

The above table calculations suggest that the responses given by respondents of the 

study are reliable. 

Hypotheses of the study and Regression Analysis 

An overview of the hypothesis related to the relationship of socio economic conditions 

with food, shelter, financial help, health facilities, education and employment. In order 

to test the hypothesis of the study six hypotheses are developed. Study shows that there 

is significant relationship between the socio economic condition and following 

hypothesis. 

Objectives 

Relationship 

between 

NGO Aid 

and Socio 

economic 

condition. 

Hypothesis 

H:1 There is a positive relationship between Socio economic condition and food. 

H:2 shelter has an impact on Socio economic condition.. 

H:3 There is a positive relationship between financial help and Socio economic 

condition. 

H:4 Health facilities has an impact on Socio economic condition 

H:5 Education has an impact on Socio economic condition 

H:6 Employment has an impact on Socio economic condition 

Table 2 below shows significance relationship between the dependent and independent 

variables. It explains that the socio economic conditions has a significant relationship 

with food, shelter, financial help, health facilities, education and employment. 

Table 2 show that the overall model is highly significant. Table 2 below shows 

significance relationship between food and socio economic conditions. There is 

significant relationship exist between food and socio economic conditions (t-statistic = 

23.311 and P-value= 0.000). There is a significant relationships exist between shelter and 

socio economic conditions (t-statistic = 32.711 and P-value= 0.000) which mean that 

shelter has an impact on socio economic conditions. 

Table 2 shows that there is a significant relationships exist between financial help and 

socio economic conditions (t-statistic = 14.254 and P-value= 0.000) which mean 

financial help has an impact on socio economic conditions. There is significant 

relationship exist between health facilities and socio economic conditions (t-statistic = 

26.231 and P-value= 0.000). 




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Table 2 Regression Results for Variables of the study. 

DETERMINANTS OF BRAND EQUITY 

S. 

No 

Dependent 

Variables 

Independent 

variable 

Adjusted 

R square 

F B St. 

Error 

T P. 

Value 

1 Socio economic 

Condition 


Condition 


Condition 


Condition 


Condition 


Condition 

Food 0.521 16.207 0.256 0.296 23.311 0.000 

Shelter 0.529 23.109 0.630 0.270 32.711 0.000 

Financial Help 0.883 17.014 0.289 0.116 14.254 0.000 

Health 0.501 37.353 0.429 0.321 26.231 0.000 

Facilities 

Employment 0.626 35.102 0.426 0.325 37.561 0.000 

Education 0.503 24.011 0.781 0.401 31.110 0.000 

There is significant relationship exist between education and socio economic conditions 

(t-statistic = 37.561 and P-value= 0.000). There is a significant relationships exist 

between employment and socio economic conditions (t-statistic = 31.110 and P-value= 

0.000) which mean employment has an impact on socio economic conditions. Hence the 

above result shows that socio economic condition is dependent upon above mentioned 

variables. 

Correlation Analysis 

As shown in table 3, there is strong association between socio economic condition and 

food, shelter, financial help, health facilities, education and employment. Survey 

demonstrates that there is a strong relationship between food and socio economic 

condition with Correlation coefficient (r = 0.727). 

For shelter and socio economic condition correlation coefficient is (r = .725). Which 

mean that shelter has a strong influence on socio economic condition. As shown in table 

3, there is very strong association between financial help and socio economic condition 

with correlation coefficient (r = .937). Which mean that socio economic condition is 

strongly dependent upon financial help. 




APRIL 2012 

VOL 3, NO 12 

BRAND AWARENESS 

S. 

No 

Dependent 

Variables 

Independent 

variable 

R 

R Square 


Condition 


Condition 


Condition 


Condition 


Condition 


Condition 

Food 0.727 0.528 

Shelter 0.725 0.525 

Financial Help 0.937 0.877 

Health Facilities 0.714 0.509 

Employment 0.824 0.678 

Education 0.721 0.519 

There is a strong correlation between health facilities and socio economic conditions 

with correlation coefficient (r = .714). Employment has a strong relationship with socio 

economic condition with correlation coefficient (r = .824). Which mean that 

employment has strong impact on socio economic condition. There is a relationship 

exist between education and socio economic condition with correlation coefficient (r = 

.721). Which mean that education can affect socio economic condition. 

Conclusion 

This study highlights the atrocities associated with floods. As it is a common 

phenomenon as floods in any area cause a huge catastrophic effect to not only to 

habitants of that locality but to the total ecosystem. In response to havoc being caused 

by floods we should deeply go into the details associated with causes that have caused 

such a flood. 

Rivers and canal system have been serving humanity and human kind for ages. 

Wherever there being a development in human lives rivers have always being at utmost 

importance for benefits and well beings of humanity. But rivers being termed as al 

mighty and powerful there misuse or hurdles being created in there paths and stream of 

flows causes havoc to human population by and large. Therefore such drastic steps have 

to be formulated that will result in peaceful flowing of rivers benefiting all humanity 

and man kind by and large. The intentional and unintentional hurdles being put in paths 

of rivers will ultimately make these rives get wild causing colossal damages all and 

sundry. 

This study clearly reveals the role of NGO’s in development and Socio-Economic uplift 

of people. But this totally depends on how much honest and sincere an NGO is in 

operations. As at back end of every NGO there are human beings who looks after affairs 

related to NGO’s therefore proper grooming & understanding of personal who works in 

an Ngo is very important. As NGO’s are well fed on donors money therefore most of 




APRIL 2012 

VOL 3, NO 12 

time they get deviated from there course of action and instead of providing relief and 

help to people they certainly becomes a liability or a sudden burden on people whom it 

claims to provide service. 

Therefore in this research opinion NGO can play a vital role in uplift of a community 

being deprived or being hit by a natural calamity therefore there is a great need to 

communicate and educate the people working in a social economic uplift sector to reach 

out beyond limits and work out with a clear cut mentality in order to bring relief and 

good fortune to people at time of need. 

In view of this research it has concluded that there is a significant positive relationship 

between socio economic condition and food, shelter, financial help, health facilities, 

education and employment. But there is a strong relationship exist between socio 

economic condition and financial help with correlation coefficient (r = .937). NGO’s 

should be given a free hand in delivering relief related activities in flood effected areas 

with a clear approach towards goal and objectives of there ultimate work. Extreme care 

have to met in proper utilization of funds being offered by donors in order to smooth 

functioning of inventory, man power and other important utilities associated with a 

completion of a certain project. 




APRIL 2012 

VOL 3, NO 12 

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