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Why pay NGOs to involve the community?

Author

Listed:
  • Ronelle Burger

    (Department of Economics, University of Stellenbosch)

  • Indraneel Dasgupta

    (Economic Research Unit, Indian Statistical Institute)

  • Trudy Owens

    (School of Economics, 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

  • Ronelle Burger & Indraneel Dasgupta & Trudy Owens, 2014. "Why pay NGOs to involve the community?," Working Papers 05/2014, Stellenbosch University, Department of Economics.
    • Handle: RePEc:sza:wpaper:wpapers210
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    More about this item

    Keywords

    regulation of non-governmental organizations; developing countries; community participation; Uganda;
    All these keywords.

    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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