Why pay NGOs to involve the community?

Stellenbosch Working Paper Series No. WP05/2014
 
Publication date: 2014
 
Author(s):
[protected email address] (Department of Economics, University of Stellenbosch)
[protected email address] (Economic Research Unit, Indian Statistical Institute)
[protected email address] (School of Economics, University of Nottingham)
 
Abstract:

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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BER Weekly

18 September 2017
Data reported on the domestic economy last week covered the current account balance for Q2, as well as retail and wholesale sales in July. Accordingly, SA registered its third consecutive trade surplus in the second quarter. Despite this improvement on the back of higher commodity prices, transfer payments to the Southern African Customs Union (SACU)...

Read the full issue