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Keeping a Low Profile: What Determines the Allocation of Aid by Non-Governmental Organizations?

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  • Koch, Dirk-Jan
  • Dreher, Axel
  • Nunnenkamp, Peter
  • Thiele, Rainer

Abstract

Summary We analyze the targeting of non-governmental organization (NGO) aid across countries in a multivariate regression framework, based on a dataset for 61 important international NGOs. While our results show that NGOs are more active in the neediest countries, we reject the hypothesis that NGOs complement official aid through engaging in difficult institutional environments. Rather, they replicate location choices of official "backdonors." Moreover, NGOs follow other NGOs so that aid gets clustered. Finally, NGOs select recipient countries with common traits related to religion or colonial history. Our findings suggest that NGOs keep a low profile rather than distinguishing themselves from other donors. It remains open to debate, however, whether these findings also apply to the wide variety of smaller NGOs (not covered by our sample).

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 37 (2009)
Issue (Month): 5 (May)
Pages: 902-918

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Handle: RePEc:eee:wdevel:v:37:y:2009:i:5:p:902-918

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: aid allocation aid agencies non-governmental organizations poverty;

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Citations

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Cited by:
  1. Peter Nunnenkamp & Hannes Öhler, 2009. "Aid Allocation through Various Official and Private Channels: Need, Merit and Self-Interest as Motives of German Donors," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 16, Courant Research Centre PEG.
  2. Peter Nunnenkamp & Rainer Thiele, 2009. "Sind Nichtregierungsorganisationen die besseren Entwicklungshelfer?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 10(3), pages 266-289, 08.
  3. Paul A. Raschky & Manijeh Schwindt, 2010. "On the Channel and Type of Aid: The Case of International Disaster Assistance," Development Research Unit Working Paper Series 06-10, Monash University, Department of Economics.
  4. Peter Nunnenkamp & Janina Weingarth & Johannes Weisser, 2008. "Is NGO Aid Not So Different After All? Comparing the Allocation of Swiss Aid by Private and Official Donors," Kiel Working Papers 1405, Kiel Institute for the World Economy.
  5. Afridi, Muhammad Asim & Ventelou, Bruno, 2013. "Impact of health aid in developing countries: The public vs. the private channels," Economic Modelling, Elsevier, vol. 31(C), pages 759-765.
  6. Nunnenkamp, Peter & Öhler, Hannes & Schwörer, Tillmann, 2013. "US based NGOs in International Development: Financial and Economic Determinants of Survival," World Development, Elsevier, vol. 46(C), pages 45-65.
  7. Metzger, Laura & Nunnenkamp, Peter & Mahmoud, Toman Omar, 2010. "Is Corporate Aid Targeted to Poor and Deserving Countries? A Case Study of Nestlé's Aid Allocation," World Development, Elsevier, vol. 38(3), pages 228-243, March.
  8. Tierney, Michael J. & Nielson, Daniel L. & Hawkins, Darren G. & Roberts, J. Timmons & Findley, Michael G. & Powers, Ryan M. & Parks, Bradley & Wilson, Sven E. & Hicks, Robert L., 2011. "More Dollars than Sense: Refining Our Knowledge of Development Finance Using AidData," World Development, Elsevier, vol. 39(11), pages 1891-1906.

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