Local Politics of Forest Governance: Why NGO Support Can Reduce Local Government Responsiveness

Concerned with the challenges of sustainable development, policy makers and scholars often urge nongovernmental organizations to increase their efforts to support governance of natural resources in developing countries. How does funding from external NGOs influence the responsiveness of local government policy to the sector-specific needs and policy preferences of local citizens? Using a unique longitudinal dataset from surveys of local governance actors in 200 municipalities in Bolivia and Guatemala, we explore these questions in the context of local natural resource policy. We find preliminary support for the hypothesis that external NGOs gain disproportionate influence over local policy processes in forestry by donating to local governments, and that this influence “crowds out” the influence of local grassroots actors, leading to less responsive local governance as rated by councils of local citizens. However, political pressure on local government officials from organized local groups in the forestry sector counteracts this negative relationship. Although NGOs can contribute to technical capacity for local governments and are generally seen as supportive of decentralized and participatory governance, our findings suggest that NGOs exert political pressure on local governments in pursuit of their own policy goals, and that NGO support may sometimes steer local governments away from responding to the specific livelihood needs of local resource users. More generally, our findings underscore the importance of local political contexts in moderating the effects of NGO interventions.