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Why Pay NGOs to Involve the Community?

Author

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  • Burger, Ronelle

    () (Stellenbosch University)

  • Dasgupta, Indraneel

    () (Indian Statistical Institute)

  • Owens, Trudy

    () (University of Nottingham)

Abstract

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.

Suggested Citation

  • Burger, Ronelle & Dasgupta, Indraneel & Owens, Trudy, 2014. "Why Pay NGOs to Involve the Community?," IZA Discussion Papers 8051, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp8051
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    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. Ritva Reinikka & Jakob Svensson, 2010. "Working for God? Evidence from a Change in Financing of Nonprofit Health Care Providers in Uganda," Journal of the European Economic Association, MIT Press, vol. 8(6), pages 1159-1178, December.
    7. 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.
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    Cited by:

    1. Ronelle Burger & Indraneel Dasgupta & Trudy Owens, 2015. "A Model of Nongovernmental Organization Regulation with an Application to Uganda," Economic Development and Cultural Change, University of Chicago Press, vol. 64(1), pages 71-111.

    More about this item

    Keywords

    community participation; regulation of non-governmental organizations; developing countries; Uganda;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy

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