Institutions are essentially broadly agreed norms, rules and routines. They might have arisen out of social conflicts with strong influence of power relations, but they also face the demands of democracy. While studying NGOs as political institutions, particularly in the context of a number of developing countries, this article argues that the political context of their action is determined by their relationship with the donors and social movements. Second, NGOs promote democracy when they redefine participation in terms of their relationship with state and society; and contribute to improve the quality of participation, although with much less success in promoting internal democracy.
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