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Why pay NGOs to involve the community?

Listed author(s):
  • Ronelle Burger

    ()

    (Department of Economics, University of Stellenbosch)

  • Indraneel Dasgupta

    ()

    (Economic Research Unit, Indian Statistical Institute)

  • Trudy Owens

    ()

    (School of Economics, 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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File URL: https://www.ekon.sun.ac.za/wpapers/2014/wp052014/wp-05-2014.pdf
File Function: First version, 2014
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Paper provided by Stellenbosch University, Department of Economics in its series Working Papers with number 05/2014.

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Date of creation: 2014
Handle: RePEc:sza:wpaper:wpapers210
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