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Location decisions and nongovernmental organization motivation : evidence from rural Bangladesh

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  • Anna Fruttero
  • Varun Gauri

Abstract

Nongovernmental organizations (NGOs) play an increasingly important role in development assistance, but little systematic evidence is available about their objectives and choices in developing countries. The authors develop two stylized accounts of NGO motivation: one in which donor contracts determine location decisions, and another in which altruistic motivations are the principal determinants. The authors then use data from the 1995 and 2000 rounds of the Bangladesh Households and Income and Expenditure Survey to analyze location decisions of NGO programs established between those two sample years. The data show that net change in a community's NGO program was unrelated to the community's need and that NGOs were ready to establish new programs in new areas without being concerned of duplicating the efforts of other NGOs. The findings suggest that contracts with donors, implicit or explicit, probably play a crucial role in determining the incentives that affect NGO program location choices.

Suggested Citation

  • Anna Fruttero & Varun Gauri, 2003. "Location decisions and nongovernmental organization motivation : evidence from rural Bangladesh," Policy Research Working Paper Series 3176, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3176
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    References listed on IDEAS

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    Cited by:

    1. Mallick, Debdulal, 2012. "Microfinance and Moneylender Interest Rate: Evidence from Bangladesh," World Development, Elsevier, vol. 40(6), pages 1181-1189.
    2. Boriana Yontcheva & Mrs. Nadia Masud, 2005. "Does Foreign Aid Reduce Poverty? Empirical Evidence from Nongovernmental and Bilateral Aid," IMF Working Papers 2005/100, International Monetary Fund.
    3. Gilles Nancy & Boriana Yontcheva, 2006. "Does NGO Aid Go to the Poor? Empirical Evidence from Europe," IMF Working Papers 2006/039, International Monetary Fund.
    4. Asadul Islam Author-X-Name-Asadul, 2008. "Who Benefits From Microfinance? The Impact Evaluation Of Large Scale Programs In Bangladesh," Monash Economics Working Papers 29/08, Monash University, Department of Economics.
    5. Proloy Barua, 2006. "Targeting the Poorest in Microfinance: Poverty Outreach of BDP Ultra Poor Programme," Working Papers id:658, eSocialSciences.

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