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The make-or-buy public strategy. The case of government delivery of international aid in Spain

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Abstract

This paper seeks to answer the question of which international development projects are outsourced from the public bureaucracies when the contractor is a non-profit organization (NGO). The transaction cost economics framework is used to analyze the reasons underlying the outsourcing decision by isolating the transactional characteristics. The make-or-buy decisions made by the public agency in Spain for the international aid delivery projects during five years are analyzed. The results achieved shows that the international aid delivery projects developed as government subsidies present light formulation reports and more relevant contingencies than those developed through an NGO. This fact could make us suspect that the government subsidies are used to developed international aid delivery projects involving higher levels of complexity, uncertainty and asset specificity. Este trabajo trata de responder a la pregunta referente a qu‚ proyectos de cooperaci¢n al desarrollo son externalizados por el ente p£blico a trav‚s una organizaci¢n no gubernamental para el desarrollo (ONGD). Se emplea el marco te¢rico de la teor¡a de costes de transacci¢n, y en concreto las caracter¡sticas transaccionales para analizar las razones que fundamentan la externalizaci¢n. Las decisiones tomadas por la Agencia espa¤ola de Cooperaci¢n al Desarrollo durante un periodo de cinco a¤os son analizadas. Los resultados obtenidos muestran que los proyectos de cooperaci¢n al desarrollo ejecutados como Subvenciones de Estado presentan formulaciones m s difusas y contingencias de mayor importancia que aquellos ejecutados mediante subvenciones a ONGD lo cual puede implicar mayores niveles de complejidad, incertidumbre y especificidad en sus activos.

Suggested Citation

  • Hermano Rebolledo, V¡ctor & Mart¡n Cruz, Natalia, 2010. "The make-or-buy public strategy. The case of government delivery of international aid in Spain," Working Papers "New Trends on Business Administration". Documentos de Trabajo "Nuevas Tendencias en Dirección de Empresas". 2010-01, Interuniversity Research Master and Doctorate Program (with a quality mention of ANECA) on "Business Economics", Universities of Valladolid, Burgos, Salamanca and León (Spain). Until 2008, Interuniversity Doctorate Program (with a quality mention of ANECA) “New trends in Business Administration”, Universities of Valladolid, Burgos, and Salamanca (Spain). Master en Investigación y Programa de Docto.
    • Handle: RePEc:ntd:wpaper:2010-01
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