The World Bank classifies NGOs into two main categories:
1.) Operations NGOs whose primary purpose is the design and implementation of development-related projects, and:
2.) Advocacy NGO whose primary purpose is to defend or promote a specific cause and who seek to influence the policies and practices of the World Bank.
The World Bank classifies operations into three main groups:
a) Community- based organizations (CBOs), which serve a specific population in a narrow geographic area;
b) National organizations which operate in individual developing countries, and;
c) International organizations, which are typically headquartered in developed countries and carry out operations in more than one developing country.
While national and international organizations are “intermediary” NGOs, which are formed to serve others and normally contracted to deliver services, design projects or conduct research; CBOs (also referred to as grassroots organization or peoples’ organizations) are normally “membership” organizations made up of a group of individuals who have joined together to further, their own interests (e.g.: Women’s groups, credit circles, youth clubs, cooperatives and farmer associations) and more likely to be the recipients of project goods and services. Since the early 1990s much progress has been made in consulting with civil society organizations (CSOs) in Bank projects and policy work. Such consultations have generally been recognized to have improved the quality of policy making, positively influenced the direction of country programs, strengthened national ownership of key reforms, and promoted public sector transparency and accountability. CSOs can supply essential “local knowledge” in the policy process and give voice to the opinions and experiences of the poor. These contributions have been further recognized in the Comprehensive Development Framework (CDF) and the Poverty Reduction Strategies (PRS) that place partnerships between governments, civil society, and business at the center of development planning. CSOs are also playing an increasingly important role in influencing Bank strategy and policy, and efforts are underway to incorporate CSOs into global policy processes. The role played by Bank staff in these consultations will vary from one situation to another. In some instances, the Bank may need to act as a facilitator, convening the relevant actors, assisting governments and CSOs in the consultation process, and ensuring that relevant input from CSOs is given adequate attention. In other words, it may be appropriate for the Bank to participate in the dialogue as the interlocutor or alongside other stakeholders.