Poverty and Governance: The Contest for Aid
Countries compete with one another for funds distributed by nongovernment organizations (NGOs). We examine the competition over poverty and governance conducted by a NGO in the allocation of its funds among potential recipient countries. The NGO in its decisionmaking process also takes into account the initial conditions of each potential recipient, including the current quality of governance and wealth (poverty). For example, all else equal, the poorer country will have a higher probability of obtaining funds; or, the better the applicant?s governance, the greater are its gains. Moreover, the maximum aid a country can obtain depends on its wealth. Investment in good governance, the wealth/poverty status of the applicant, and its current quality of governance will in conjunction determine the funds potential recipients can expect to obtain. We also consider recent changes in the levels of these factors in our attempt to understand the roles these factors play in the competition for aid, and the outcome for the quality of governance.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.wider.unu.edu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Heckelman, Jac & Knack, Stephen, 2005.
"Foreign aid and market-liberalizing reform,"
Policy Research Working Paper Series
3557, The World Bank.
- Lahiri, Sajal & Raimondos-Moller, Pascalis, 1997.
"Competition for aid and trade policy,"
Journal of International Economics,
Elsevier, vol. 43(3-4), pages 369-385, November.
- Sajal Lahiri and Pascalis Raimondos, . "Competition for Aid and Trade Policy," Economics Discussion Papers 433, University of Essex, Department of Economics.
- Sajal Lahiri & Pascalis Raimondos, . "Competition for Aid and Trade Policy," EPRU Working Paper Series 94-12, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Epstein, Gil S. & Gang, Ira N., 2005.
"Contests, NGOs and Decentralizing Aid,"
IZA Discussion Papers
1711, Institute for the Study of Labor (IZA).
- Svensson, Jakob, 2003. "Why conditional aid does not work and what can be done about it?," Journal of Development Economics, Elsevier, vol. 70(2), pages 381-402, April.
- Gil Epstein & Shmuel Nitzan, 2006. "The Politics of Randomness," Social Choice and Welfare, Springer, vol. 27(2), pages 423-433, October.
- Mavrotas, George & Villanger, Espen, 2006. "Multilateral Aid Agencies and Strategic Donor Behaviour," Working Paper Series DP2006/02, World Institute for Development Economic Research (UNU-WIDER).
When requesting a correction, please mention this item's handle: RePEc:unu:wpaper:rp2008-76. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruck Tadesse)
If references are entirely missing, you can add them using this form.