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Kiel Institute for World Economics 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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