Why pay NGOs to involve the community?
Stellenbosch Working Paper Series No. WP05/2014Publication date: 2014
Author(s):
[protected email address] (Economic Research Unit, Indian Statistical Institute)
[protected email address] (School of Economics, University of Nottingham)
We examine the case for donors providing financial incentives to NGOs to increase community participation. We show that, when such incentives are provided, there need not exist any meaningful relationship between beneficiary welfare and the extent of community participation implemented by an NGO. Higher community participation is consistent even with reduced beneficiary welfare. Thus, eliminating community participation from the set of conditions for funding an NGO may improve beneficiary welfare. We provide evidence from the NGO sector in Uganda consistent with our theoretical conclusions. Beneficiaries themselves do not appear to perceive community participation as generating appreciable value-addition in project output.
JEL Classification:I38, L31, L38
Keywords:regulation of non-governmental organizations, developing countries, community participation, Uganda
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Prof Euan Phimister: Stellenbosch Business School
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12:10-13:10
Dr Friedrich Kreuser: Stellenbosch University
Topic: "Allocative Efficiency, Labour Shares, and Corporate Lobbying in European Manufacturing"
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BER Weekly
26 Sep 2025 Free Weekly Review | Number 37 | 26 SeptemberThis report covers the key domestic and international data releases over the past week. The more comprehensive BER Weekly Review (Enhanced Version) includes a detailed discussion on the main economic events and developments over the past week, a summary of upcoming data (the week ahead) and the BER’s forecast for key economic indicators....
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