Kiel Working Papers, Kiel Institute for World Economics
No 1484:
Sind Nichtregierungsorganisationen die besseren Entwicklungshelfer?
Peter Nunnenkamp and Rainer Thiele
Abstract: Non-governmental organizations (NGOs) are widely expected
to provide better targeted aid than state agencies with a hidden agenda of
commercial and political self-interest. However, principal-agent models
question that NGOs decide autonomously on aid allocation. Indeed, we show
empirically that NGO aid offers no panacea: The focus of NGOs on the
neediest recipients turns out to be surprisingly weak. NGOs hardly make use
of the perceived comparative advantage of working in “difficult
environments.” Rather, they are strongly inclined to follow the herd of
other NGOs and mimic the allocation behaviour of state agencies, especially
if they depend on public co-financing
Keywords: Non-governmental organizations, Aid allocation; (follow links to similar papers)
JEL-Codes: F35; (follow links to similar papers)
30 pages, February 2009
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