Kiel Working Papers, Kiel Institute for World Economics
No 1383:
Are NGOs the Better Donors? A Case Study of Aid Allocation for Sweden
Axel Dreher, Florian Mölders and Peter Nunnenkamp
Abstract: This paper analyzes whether and to what extent
non-governmental organizations (NGOs) outperform official donors by
allocating aid in a way that renders effective poverty alleviation more
likely. We employ Probit and Tobit models and make use of an exceptionally
detailed database that allows an assessment of the allocation of Swedish
NGO aid in comparison to the allocation of Swedish official aid. Our
results show that NGOs are more selective when deciding about which
countries to enter at all. Moreover, in contrast to NGO aid, there is some
evidence that political and commercial motives matter for the selection of
ODA recipients. However, the Swedish case also supports the skeptical view
according to which NGOs are unlikely to outperform official donors by
providing better targeted aid when it comes to the allocation across
recipients having passed the eligibility test.
Keywords: Aid allocation, NGO aid, ODA, Sector-specific aid; (follow links to similar papers)
JEL-Codes: F35; O11; O19; (follow links to similar papers)
38 pages, October 2007
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