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Why Pay NGOs to Involve the Community?

  • Burger, Ronelle

    ()

    (Stellenbosch University)

  • Dasgupta, Indraneel

    ()

    (Indian Statistical Institute)

  • Owens, Trudy

    ()

    (University of Nottingham)

We examine the case for donors providing financial incentives to NGOs to increase community participation. We show that, when such incentives are provided, there need not exist any meaningful relationship between beneficiary welfare and the extent of community participation implemented by an NGO. Higher community participation is consistent even with reduced beneficiary welfare. Thus, eliminating community participation from the set of conditions for funding an NGO may improve beneficiary welfare. We provide evidence from the NGO sector in Uganda consistent with our theoretical conclusions. Beneficiaries themselves do not appear to perceive community participation as generating appreciable value-addition in project output.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 8051.

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Length: 19 pages
Date of creation: Mar 2014
Date of revision:
Publication status: forthcoming in: Annals of Public and Cooperative Economics, 2015
Handle: RePEc:iza:izadps:dp8051
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  1. Indraneel Dasgupta & Ravi Kanbur, 2005. "Community and anti-poverty targeting," Journal of Economic Inequality, Springer, vol. 3(3), pages 281-302, December.
  2. J-P. Platteau & A. Abraham, 2002. "Participatory Development in the Presence of Endogenous Community Imperfections," Journal of Development Studies, Taylor & Francis Journals, vol. 39(2), pages 104-136.
  3. Dasgupta, Indraneel & Kanbur, Ravi, 2007. "Community and class antagonism," Journal of Public Economics, Elsevier, vol. 91(9), pages 1816-1842, September.
  4. Botchway, Karl, 2001. "Paradox of Empowerment: Reflections on a Case Study from Northern Ghana," World Development, Elsevier, vol. 29(1), pages 135-153, January.
  5. Spiros Bougheas & Indraneel Dasgupta & Oliver Morrissey, 2007. "Tough love or unconditional charity?," Oxford Economic Papers, Oxford University Press, vol. 59(4), pages 561-582, October.
  6. Ronelle Burger & Indraneel Dasgupta & Trudy Owens, 2011. "A Model of NGO Regulation with an Application to Uganda," Working Papers 22/2011, Stellenbosch University, Department of Economics.
  7. Asim Ijaz Khwaja, 2004. "Is Increasing Community Participation Always a Good Thing?," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 427-436, 04/05.
  8. Jo de Berry, 1999. "Exploring the concept of community: implications for NGO management," LSE Research Online Documents on Economics 29100, London School of Economics and Political Science, LSE Library.
  9. Indraneel Dasgupta & Ravi Kanbur, 2011. "Does philanthropy reduce inequality?," Journal of Economic Inequality, Springer, vol. 9(1), pages 1-21, March.
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