Bringin? Home the Curry and Givin? it away: Commercial Ventures of NGOs in Bangladesh
From handicraft shops to cyber cafés, more and more NGOs in developing countries are moving toward investment in revenue-generating business ventures. This paper explores the motivations behind such investments and their impact the donor-NGO relationship. First, a case study of NGOs in Bangladesh provides evidence of NGOs? commercial earnings in the country. Then, a simple theoretical model underlines three determinants of an NGO's decision to invest in business: the uncertainty of future donor funding; the lack of funds available; and the need to finance expenditures that donors do not value. Furthermore, facing uncertainty regarding their ability to renew future commitment, donors might prefer NGOs with business ventures. Finally, the analysis shows that having an independent income does not necessarily make NGOs better off.
|Date of creation:||2006|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.ael.ethz.ch/|
More information through EDIRC
References listed on IDEAS
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.:
- Stiles, Kendall, 2002. "International Support for NGOs in Bangladesh: Some Unintended Consequences," World Development, Elsevier, vol. 30(5), pages 835-846, May.
- Glaeser, Edward L. & Shleifer, Andrei, 2001.
Journal of Public Economics,
Elsevier, vol. 81(1), pages 99-115, July.
- Edward L. Glaeser & Andrei Shleifer, 1998. "Not-For-Profit Entrepreneurs," NBER Working Papers 6810, National Bureau of Economic Research, Inc.
- Edward L. Glaeser & Andrei Shleifer, 1998. "Not-For-Profit Entrepreneurs," Harvard Institute of Economic Research Working Papers 1852, Harvard - Institute of Economic Research.
- Besley, Timothy J. & Ghatak, Maitreesh, 2001.
"Government versus Private Ownership of Public Goods,"
CEPR Discussion Papers
2725, C.E.P.R. Discussion Papers.
- Timothy Besley & Maitreesh Ghatak, 2001. "Government Versus Private Ownership of Public Goods," The Quarterly Journal of Economics, Oxford University Press, vol. 116(4), pages 1343-1372.
- Jean--Paul Azam, 2003. "A Theory of Poverty Aversion and Civil Society Development," Economics and Politics, Wiley Blackwell, vol. 15(1), pages 61-84, March.
- Jack, William, 2001. "Public policy toward nongovernmental organizations in developing countries," Policy Research Working Paper Series 2639, The World Bank.
- Azam, Jean-Paul & Laffont, Jean-Jacques, 2003. "Contracting for aid," Journal of Development Economics, Elsevier, vol. 70(1), pages 25-58, February.
- Holmstrom, Bengt & Milgrom, Paul, 1991. "Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design," Journal of Law, Economics and Organization, Oxford University Press, vol. 7(0), pages 24-52, Special I.
When requesting a correction, please mention this item's handle: RePEc:zbw:gdec06:4742. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.