International donors usually have particular goals they want to achieve with their foreign aid, for example, poverty alleviation. In the international aid story lobbying by potential recipient groups attempting to capture the donor’s support play a potentially important role for nongovernmental organizations. We model this situation as a hierarchical contest and compare the implications of a centralized allocation process with a decentralized allocation process with nongovernmental organizations as intermediaries.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
1711.
Find related papers by JEL classification: F35 - International Economics - - International Finance - - - Foreign Aid D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
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