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Is NGO aid not so different after all? Comparing the allocation of Swiss aid by private and official donors

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  • Nunnenkamp, Peter
  • Weingarth, Janina
  • Weisser, Johannes

Abstract

Being closer to the poor, NGOs are widely believed to provide better targeted aid than state agencies. But empirical evidence is largely lacking. We contribute to closing this gap by drawing on an exceptionally detailed Swiss database that covers different forms of NGO aid and several official aid benchmarks. The Tobit estimations account for both altruistic and selfish aid motivations. Whether or not NGOs provide better targeted aid depends on the source of NGO funding as well as the choice of the official benchmark. In contrast to widespread belief, however, the allocation of self-financed NGO aid reveals striking similarities to the allocation of official Swiss development aid.

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  • Nunnenkamp, Peter & Weingarth, Janina & Weisser, Johannes, 2009. "Is NGO aid not so different after all? Comparing the allocation of Swiss aid by private and official donors," European Journal of Political Economy, Elsevier, vol. 25(4), pages 422-438, December.
  • Handle: RePEc:eee:poleco:v:25:y:2009:i:4:p:422-438
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    Cited by:

    1. Axel Dreher & Peter Nunnenkamp & Hannes Öhler & Johannes Weisser, 2009. "Acting Autonomously or Mimicking the State and Peers? A Panel Tobit Analysis of Financial Dependence and Aid Allocation by Swiss NGOs," CESifo Working Paper Series 2617, CESifo Group Munich.
    2. Raschky, Paul A. & Schwindt, Manijeh, 2012. "On the channel and type of aid: The case of international disaster assistance," European Journal of Political Economy, Elsevier, vol. 28(1), pages 119-131.
    3. repec:eee:wdevel:v:97:y:2017:i:c:p:232-250 is not listed on IDEAS
    4. Nunnenkamp, Peter & Öhler, Hannes, 2011. "Aid Allocation through Various Official and Private Channels: Need, Merit, and Self-Interest as Motives of German Donors," World Development, Elsevier, vol. 39(3), pages 308-323, March.
    5. Paul Hansen & Nicole Kergozou & Stephen Knowles & Paul Thorsnes, 2014. "Developing Countries in Need: Which Characteristics Appeal Most to People when Donating Money?," Journal of Development Studies, Taylor & Francis Journals, vol. 50(11), pages 1494-1509, November.
    6. Öhler, Hannes, 2013. "Do Aid Donors Coordinate Within Recipient Countries?," Working Papers 539, University of Heidelberg, Department of Economics.
    7. Dreher, Axel & Nunnenkamp, Peter & Thiel, Susann & Thiele, Rainer, 2010. "Aid allocation by German NGOs: does the degree of public refinancing matter?," Kiel Working Papers 1584, Kiel Institute for the World Economy (IfW).
    8. 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.
    9. Gani Aldashev & Cecilia Navarra, 2017. "Development NGOs: Basic Facts," Working Papers ECARES ECARES 2017-36, ULB -- Universite Libre de Bruxelles.
    10. repec:got:cegedp:92 is not listed on IDEAS
    11. Kalyvitis, Sarantis & Vlachaki, Irene, 2012. "When does more aid imply less democracy? An empirical examination," European Journal of Political Economy, Elsevier, vol. 28(1), pages 132-146.
    12. Peter Nunnenkamp & Rainer Thiele, 2009. "Sind Nichtregierungsorganisationen die besseren Entwicklungshelfer?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 10(3), pages 266-289, August.
    13. Fløgstad, Cathrin & Hagen, Rune Jansen, 2017. "Aid Dispersion: Measurement in Principle and Practice," World Development, Elsevier, vol. 97(C), pages 232-250.
    14. Axel Dreher & Peter Nunnenkamp & Hannes Öhler & Johannes Weisser, 2012. "Financial Dependence and Aid Allocation by Swiss NGOs: A Panel Tobit Analysis," Economic Development and Cultural Change, University of Chicago Press, vol. 60(4), pages 829-867.
    15. Axel Dreher & Florian Mölders & Peter Nunnenkamp, 2010. "Aid Delivery through Non-governmental Organisations: Does the Aid Channel Matter for the Targeting of Swedish Aid?," The World Economy, Wiley Blackwell, vol. 33(2), pages 147-176, February.
    16. Spiros Bougheas & Alessia Isopi & Trudy Owens, "undated". "How do Donors Allocate Funds to NGOs? Evidence from Uganda," Discussion Papers 12/08, University of Nottingham, CREDIT.
    17. Axel Dreher & Peter Nunnenkamp & Hannes Oehler & Johannes Weisser, 2009. "Acting autonomously of mimicking the state and peers?," KOF Working papers 09-219, KOF Swiss Economic Institute, ETH Zurich.
    18. Ranis Gustav & Xiong Shirley & Singer Olivia, 2012. "NGOs and Development Reconsidered," New Global Studies, De Gruyter, vol. 6(3), pages 1-24, December.
    19. Doucouliagos, Hristos & Paldam, Martin, 2011. "The ineffectiveness of development aid on growth: An update," European Journal of Political Economy, Elsevier, vol. 27(2), pages 399-404, June.
    20. Hermano, Víctor & Martín-Cruz, Natalia, 2013. "How to Deliver Foreign Aid? The Case of Projects Governed by the Spanish International Agency," World Development, Elsevier, vol. 43(C), pages 298-314.
    21. repec:elg:eechap:15325_15 is not listed on IDEAS
    22. Hagen, Rune Jansen, 2014. "Rents and the Political Economy of Development Aid," Working Papers in Economics 07/14, University of Bergen, Department of Economics.
    23. 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.
    24. Axel Dreher & Peter Nunnenkamp & Susann Thiel & Rainer Thiele, 2010. "Aid Allocation by German NGOs," KOF Working papers 10-247, KOF Swiss Economic Institute, ETH Zurich.

    More about this item

    Keywords

    NGO aid Official aid Aid allocation Tobit models;

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid

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