Research
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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BER Weekly
11 Oct 2024The domestic data releases were mixed this week, with a downtick in manufacturing in August and mining output looking a little better. There were some positive steps on the reform front, but also disappointments, with a setback on port reform. The international economic newsflow focussed on the US monetary policy outlook, with markets now scaling back...
Read the full issue