IDEAS home Printed from https://ideas.repec.org/a/iad/wpaper/0116.html
   My bibliography  Save this article

Decentralized aid and democracy

Author

Listed:
  • Joaquín Morales Belpair

    (Universidad Privada Boliviana)

Abstract

Este artículo usa un modelo de voto sobre finanzas públicas para mostrar que cuando organizaciones no gubernamentales otorgan ayuda al desarrollo, los beneficiarios tienen incentivos para reducir su apoyo a la redistribución estatal. Esto resulta en que las ONGs pueden provocar un efecto de expulsión del gasto público, convirtiendo la ayuda privada en una externalidad negativa para los pobres que no se benefician directamente de esta. La investigación modeliza la decisión de una ONG representativa, la cual enfrenta una disyuntiva entre focalizarse en pocos beneficiarios con muchas necesidades o reducir costos dirigiéndose a beneficiarios con menos necesidades. En esta investigación, se caracterizan las condiciones bajo las cuales esta focalización afecta la magnitud de la externalidad y se describe de qué manera afecta el bienestar de beneficiarios y no beneficiarios.

Suggested Citation

  • Joaquín Morales Belpair, 2016. "Decentralized aid and democracy," Investigación & Desarrollo, Universidad Privada Boliviana, vol. 2(1), pages 5-17.
    • Handle: RePEc:iad:wpaper:0116
    as

    Download full text from publisher

    File URL: http://www1.upb.edu/RePEc/iad/wpaper/0116.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Angus Deaton, 2009. "Instruments of development: Randomization in the tropics, and the search for the elusive keys to economic development," Working Papers 1128, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
    2. Andreoni,J. & Payne,A.A., 2001. "Government grants to private charities : do they crowd out giving or fundraising?," Working papers 19, Wisconsin Madison - Social Systems.
    3. Boriana Yontcheva & Mrs. Nadia Masud, 2005. "Does Foreign Aid Reduce Poverty? Empirical Evidence from Nongovernmental and Bilateral Aid," IMF Working Papers 2005/100, International Monetary Fund.
    4. Timothy Besley & Maitreesh Ghatak, 2001. "Government Versus Private Ownership of Public Goods," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(4), pages 1343-1372.
    5. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September.
    6. Dirk-Jan Koch, 2007. "Blind Spots on the Map of Aid Allocations: Concentration and Complementarity of International NGO Aid," WIDER Working Paper Series RP2007-45, World Institute for Development Economic Research (UNU-WIDER).
    7. Aldashev, Gani & Verdier, Thierry, 2010. "Goodwill bazaar: NGO competition and giving to development," Journal of Development Economics, Elsevier, vol. 91(1), pages 48-63, January.
    8. Timothy Besley & Maitreesh Ghatak, 2005. "Competition and Incentives with Motivated Agents," American Economic Review, American Economic Association, vol. 95(3), pages 616-636, June.
    9. Herzer, Dierk & Nunnenkamp, Peter, 2012. "The effect of foreign aid on income inequality: Evidence from panel cointegration," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 245-255.
    10. Raghuram G. Rajan & Arvind Subramanian, 2008. "Aid and Growth: What Does the Cross-Country Evidence Really Show?," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 643-665, November.
    11. Scharf, Kimberley, 2014. "Impure prosocial motivation in charity provision: Warm-glow charities and implications for public funding," Journal of Public Economics, Elsevier, vol. 114(C), pages 50-57.
    12. Platteau, Jean-Philippe & Somville, Vincent & Wahhaj, Zaki, 2014. "Elite capture through information distortion: A theoretical essay," Journal of Development Economics, Elsevier, vol. 106(C), pages 250-263.
    13. repec:pri:cheawb:deaton%20instruments%20of%20development%20keynes%20lecture%202009.pdf is not listed on IDEAS
    14. Simeon Djankov & Jose Montalvo & Marta Reynal-Querol, 2008. "The curse of aid," Journal of Economic Growth, Springer, vol. 13(3), pages 169-194, September.
    15. repec:pri:rpdevs:instruments_of_development.pdf is not listed on IDEAS
    16. Azam, Jean-Paul & Laffont, Jean-Jacques, 2003. "Contracting for aid," Journal of Development Economics, Elsevier, vol. 70(1), pages 25-58, February.
    17. Jakob Svensson, 2000. "Foreign aid and rent-seeking," Springer Books, in: Roger D. Congleton & Kai A. Konrad & Arye L. Hillman (ed.), 40 Years of Research on Rent Seeking 2, pages 165-189, Springer.
    18. Torsten Persson & Guido Tabellini, 2002. "Political Economics: Explaining Economic Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262661314, April.
    19. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65(2), pages 135-135.
    20. Claire Mercer, 2002. "NGOs, civil society and democratization: a critical review of the literature," Progress in Development Studies, , vol. 2(1), pages 5-22, January.
    21. Gilles Nancy & Boriana Yontcheva, 2006. "Does NGO Aid Go to the Poor? Empirical Evidence from Europe," IMF Working Papers 2006/039, International Monetary Fund.
    22. Paul Collier & David Dollar, 2004. "Development effectiveness: what have we learnt?," Economic Journal, Royal Economic Society, vol. 114(496), pages 244-271, June.
    23. Raghuram Rajan & Arvind Subramanian, 2007. "Does Aid Affect Governance?," American Economic Review, American Economic Association, vol. 97(2), pages 322-327, May.
    24. Daron Acemoglu & James A. Robinson & Thierry Verdier, 2003. "Kleptocracy and Divide-and-Rule: A Model of Personal Rule," NBER Working Papers 10136, National Bureau of Economic Research, Inc.
    25. repec:pri:cheawb:deaton%20instruments%20of%20development%20keynes%20lecture%202009 is not listed on IDEAS
    26. Christy Cannon Lorgen, 1998. "Dancing with the state: the role of NGOs in health care and health policy," Journal of International Development, John Wiley & Sons, Ltd., vol. 10(3), pages 323-339.
    27. Bjørnskov, Christian, 2010. "Do elites benefit from democracy and foreign aid in developing countries?," Journal of Development Economics, Elsevier, vol. 92(2), pages 115-124, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Temple, Jonathan R.W., 2010. "Aid and Conditionality," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4415-4523, Elsevier.
    2. Joaquin Morales Belpaire, 2012. "Decentralized Aid and Democracy," Working Papers 1212, University of Namur, Department of Economics.
    3. Morales, Joaquin & Serfilippi, Elena, 2017. "When NGOs fail: A model of advocacy and services provision in weak democracies," MPRA Paper 91506, University Library of Munich, Germany.
    4. Channing Arndt & Sam Jones & Finn Tarp, 2009. "Aid and Growth: Have We Come Full Circle?," Discussion Papers 09-22, University of Copenhagen. Department of Economics.
    5. William Easterly, 2009. "Can the West Save Africa?," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 373-447, June.
    6. Channing Arndt & Sam Jones & Finn Tarp, 2009. "Aid and Growth: Have We Come Full Circle?," Discussion Papers 09-22, University of Copenhagen. Department of Economics.
    7. Young, Andrew T. & Sheehan, Kathleen M., 2014. "Foreign aid, institutional quality, and growth," European Journal of Political Economy, Elsevier, vol. 36(C), pages 195-208.
    8. François Bourguignon & Jean-Philippe Platteau, 2013. "Optimal Discipline in Donor-Recipient Relationships -Reframing the Aid Effectiveness Debate," PSE Working Papers halshs-00960570, HAL.
    9. repec:elg:eechap:15325_15 is not listed on IDEAS
    10. Minh Tam Schlosky & Andrew Young, 2017. "Can foreign aid motivate institutional reform? An evaluation of the HIPC Initiative," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 6(2), pages 242-258, August.
    11. Simeon Djankov & Jose Montalvo & Marta Reynal-Querol, 2008. "The curse of aid," Journal of Economic Growth, Springer, vol. 13(3), pages 169-194, September.
    12. Gani ALDASHEV & Cecilia NAVARRA, 2018. "Development Ngos: Basic Facts," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(1), pages 125-155, March.
    13. Menard, Audrey-Rose & Weill, Laurent, 2016. "Understanding the link between aid and corruption: A causality analysis," Economic Systems, Elsevier, vol. 40(2), pages 260-272.
    14. Kaya, Ilker & Kaya, Ozgur, 2020. "Foreign aid, institutional quality and government fiscal behavior in emerging economies: An empirical investigation," The Quarterly Review of Economics and Finance, Elsevier, vol. 76(C), pages 59-67.
    15. Askarov, Zohid & Doucouliagos, Hristos, 2015. "Aid and institutions in transition economies," European Journal of Political Economy, Elsevier, vol. 38(C), pages 55-70.
    16. repec:bla:annpce:v:89:y:2018:i:1:p:125-155 is not listed on IDEAS
    17. Sharri Byron, 2012. "Examining Foreign Aid Fungibility in Small Open Economies," Open Economies Review, Springer, vol. 23(4), pages 675-712, September.
    18. Bjørnskov, Christian, 2010. "Do elites benefit from democracy and foreign aid in developing countries?," Journal of Development Economics, Elsevier, vol. 92(2), pages 115-124, July.
    19. Martin Ravallion, 2014. "On the Role of Aid in The Great Escape," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 967-984, December.
    20. Hagen, Rune Jansen, 2014. "Rents and the Political Economy of Development Aid," Working Papers in Economics 07/14, University of Bergen, Department of Economics.
    21. Askarov, Zohid & Doucouliagos, Hristos, 2015. "Development Aid and Growth in Transition Countries," World Development, Elsevier, vol. 66(C), pages 383-399.
    22. Dzhumashev, Ratbek & Hailemariam, Abebe, 2021. "Foreign aid and the quality of economic institutions," European Journal of Political Economy, Elsevier, vol. 68(C).

    More about this item

    Keywords

    Ayuda privada al desarrollo; democracia; gobernabilidad; ONG; fiscalidad; bienes públicos;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iad:wpaper:0116. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ricardo Nogales C. (email available below). General contact details of provider: https://edirc.repec.org/data/ciupbbo.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.