Premium
WHY PAY NGO s TO INVOLVE THE COMMUNITY?
Author(s) -
BURGER Ronelle,
DASGUPTA Indraneel,
OWENS Trudy
Publication year - 2015
Publication title -
annals of public and cooperative economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.526
H-Index - 37
eISSN - 1467-8292
pISSN - 1370-4788
DOI - 10.1111/apce.12065
Subject(s) - beneficiary , subsidy , operationalization , public economics , context (archaeology) , incentive , welfare , business , community participation , set (abstract data type) , economics , finance , microeconomics , socioeconomics , market economy , paleontology , philosophy , epistemology , biology , computer science , programming language
We examine the case for donors providing financial incentives to, i.e. subsidizing, NGOs to increase community participation. We show that the introduction of such a ‘participation subsidy’ may reduce beneficiary welfare. Thus, eliminating community participation from the set of conditions for funding an NGO may in fact benefit target communities. We show how our theoretical analysis may be operationalized by applying it to data from the NGO sector in Uganda. Our empirical findings appear to reject the case for providing a participation subsidy in that context.