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Government–Third Sector Relations in European Rural Development: A Critical Perspective

Listed author(s):
  • Iliopoulos Constantine N.

    ()

    (Agricultural Economics Research Institute, National Agricultural Research Foundation, Athens, Greece)

  • Valentinov Vladislav

    ()

  • Kvartiuk Vasyl

    ()

    (Leibniz Institute of Agricultural Development in Central and Eastern Europe, Halle (Saale), Germany)

  • Bartkowski Bartosz

    ()

    (Martin Luther University in Halle-Wittenberg, Halle (Saale), Germany)

Rural development has significantly benefited from intensifying relations between the government and third sector organizations (TSOs) during the last several decades. TSOs can induce innovation in rural development in a variety of ways including advocacy, awareness raising, contracting, and direct delivery of public goods. However, there is a growing concern that these partnerships may be prone to inefficiencies due to adverse fundraising incentives. Utilizing Young’s (2000) typology in a literature review, this paper illuminates potential causes for mission and goal displacement due to adverse incentives generated by public funding programs. The paper suggests that complementary and supplementary TSOs are generally more likely to suffer from adverse incentives in comparison to adversarial ones. Institutional merging between the TSOs and the state may significantly limit the scope for innovation in rural development.

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Article provided by De Gruyter in its journal Nonprofit Policy Forum.

Volume (Year): 4 (2013)
Issue (Month): 1 (May)
Pages: 65-80

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Handle: RePEc:bpj:nonpfo:v:4:y:2013:i:1:p:65-80:n:5
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  1. Timothy Besley & Maitreesh Ghatak, 2001. "Government Versus Private Ownership of Public Goods," The Quarterly Journal of Economics, Oxford University Press, vol. 116(4), pages 1343-1372.
  2. Oliver Hart, 2002. "Incomplete Contracts and Public Ownership: Remarks, and an Application to Public-Private Partnerships," The Centre for Market and Public Organisation 02/061, Department of Economics, University of Bristol, UK.
  3. Pranab Bardhan & Dilip Mookherjee, 2006. "Decentralisation and Accountability in Infrastructure Delivery in Developing Countries," Economic Journal, Royal Economic Society, vol. 116(508), pages 101-127, 01.
  4. Annette Aagaard Thuesen, 2011. "Partnerships as Associations: Input and Output Legitimacy of LEADER Partnerships in Denmark, Finland and Sweden," European Planning Studies, Taylor & Francis Journals, vol. 19(4), pages 575-594, April.
  5. Chavis, Larry, 2010. "Decentralizing development: Allocating public goods via competition," Journal of Development Economics, Elsevier, vol. 93(2), pages 264-274, November.
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