• Joaquín Morales Belpaire Universidad Privada Boliviana

Palabras clave:

Private Development Assistance, Democracy, Governance, NGOs, Nonprofits, Foreign Aid, Taxation, Public Goods


This paper uses a model of vote over public finances to show that when nongovernmental organisations deliver development aid, beneficiaries have incentives to reduce electoral support for state-led redistribution. As a result, NGOs can crowd out governmental spending, turning private aid into a negative externality for the poor who do not directly benefit from it. I model the choice of a representative NGO, which faces a trade-off between targeting beneficiaries with higher needs, and reducing costs. I characterize the conditions under which this targeting affects the size of the externality and describe how it affects the welfare of beneficiaries and non-beneficiaries.


Los datos de descargas todavía no están disponibles.


Worthington, S. and Pipa, T., Private development assistance: the essentail role of INGOs, in Kharas, H., Koji, M., and Woojin, J.,, Brookings Institution Press., 2011.

OCDE, How DAC members work with civil society organisations: An overview 2011., 2011.

Yontcheva, B. and Masud, N., Does foreign aid reduce poverty? empirical evidence from, IMF Working Papers 05/100, International Monetary, 2005.

Dreher, A., Molders, F., and Nunnenkamp, P., «Are NGOs the better donors? a case study,» KOF Working papers 07-180, KOF Swiss Economic Institute,, 2007.

D. Koch, «Blind spots on the map of aid allocations: Concentration and complementarity,» 2007.

Arellano-López, S. and Petras, J. F., «Non-governmental organizations and poverty alleviation,» Development and Change, p. 25:555{568, 1994.

J. Petras, «Imperialism and NGOs in Latin America.,» Monthly Review, p. 49(07)., 1997.

C. C. Lorgen, «Dancing with the state: the role of NGOs in health care and health policy.,» Journal of International Development, p. 10(3):323{339., 1998.

C. Mercer, «NGOs, civil society and democratization: a critical review of the literature.,» 2002.

A. Downs, An economic theory of democracy., New York: Harper and Row, 1957.

H. Kharas, «The new reality of aid.,» Wolfensohn Center for Development, 2007.

Dreher, A., Molders, F., and Nunnenkamp, P., «Are NGOs the better donors? a case study,» KOF Working papers 07-180, KOF Swiss Economic Institute,, 2007.

Yontcheva, B. and Nancy, G., «Does NGO aid go to the poor? empirical evidence from,» IMF Working Papers 06/39, International Monetary Fund., 2006.

C. Navarra, «Economics of development NGOs: a survey of existing datasets.,» CRED, 2013.

H. Hansmann, «The role of nonpro,» The Yale Law Journal, vol. 89, nº 5, 1980.

S. Rose-Ackerman, «Do government grants to charity reduce private donations?,» de The Economics of Nonprofit institutions, Oxford, Oxford University Press, 1986.

Weisbrod, B., «Toward a theory of the voluntary nonpro,» de The Economics of Nonprofit institutions, Oxford, Oxford University Press, 1986.

Andreoni, J. and Payne, A. A., «Government Grants to Private Charities: Do They Crowd-Out Giving or Fundraising?,» Public Economics, 2001.

K. Scharf, «Impure prosocial motivation in charity provision: Warm-glow charities and implications for public funding,» Journal of Public Economics, vol. 114, nº C, pp. 50-57, 2014.

Besley, T. and Ghatak, M., «Government Versus Private Ownership Of Public Goods.,» The Quarterly Journal of Economics, vol. 116, nº 4, pp. 1343-1372, 2001.

Besley, T. and Ghatak, M., «Competition and incentives with motivated agents.,» American Economic Review, vol. 95, nº 3, pp. 616-636, 2005.

Aldashev, G. and Verdier, T., «Goodwill bazaar: NGO competition and giving to development,» Journal of Development Economics, vol. 91, nº 1, pp. 48-63, 2010.

Banerjee, A. and Duflo, E., Poor economics: A radical rethinking of the way to fight global poverty, PublicAffairs, 2011.

A. S. Deaton, «Instruments of development: Randomization in the tropics, and the search for the elusive keys to economic development,» National Bureau of Economic Research, 2009.

P. Mosley, «Aid-effectivenes: The micro-macro paradox,» IDS Bulletin,, vol. 17, nº 2, pp. 22-27, 1986.

J. Svensson, «Foreign aid and rent-seeking,» Journal of International Economics, vol. 51, nº 2, pp. 437-461, 2000.

Acemoglu, D., Robinson, J. A., and Verdier, T.;, «Kleptocracy and divide-and-rule: A model of personal rule,» National Bureau of Economic Research, 2003.

Platteau, J.-P., Somville, V., and Wahhaj, Z., «Elite capture through information distortion: A theoretical essay,» Working Papers 1103, University of Namur, Department of, 2011.

Azam, J.-P. and Laffont, «Contracting for aid,» Journal of Development Economics, vol. 70, nº 1, pp. 25-58, 2003.

Burnside, C. and Dollar, D., «Aid, policies, and growth.,» American Economic Review, vol. 90, nº 4, pp. 847-868, 2000.

Collier, P. and Dollar, D., «Development effectiveness: what have we learnt?,» Economic journal, vol. 114, nº 496, pp. 244-271, 2004.

Rajan, R. and Subramanian, A., «Does aid affect governance?,» American Economic Review, vol. 97, nº 2, pp. 322-327, 2007.

Rajan, R. G. and Subramanian, A., «Aid and growth: What does the cross-country evidence really show?,» The Review of Economics and Statistics, vol. 90, nº 5, pp. 643-665, 2008.

Djankov, S., Montalvo, J., and Reynal-Querol, M., «The curse of aid,» Journal of Economic Growth, vol. 13, nº 3, pp. 169-194, 2008.

Layton, T. and Fuller, J., «Aiding inequality: A pooled time-series analysis of the effect of foreign aid on income inequality,» Interamerican Development Bank Working Paper No. 455., 2008.

Herzer, D. and Nunnenkamp, P., «The effect of foreign aid on income inequality: Evidence from panel cointegration,» Kiel working papers, Kiel Institute for the World Economy., 2012.

Bjornskov, C., «Do elites benefit from democracy and foreign aid in developing countries?,» Journal of Development Economics, vol. 92, nº 2, pp. 115-124, 2010.

Koch, D.-J., Dreher, A., Nunnenkamp, P., and Thiele, R., «Keeping a low profile: What determines the allocation of aid by non-governmental organizations?,» World Development, vol. 37, nº 5, pp. 902-918, 2009.

Persson, T. and Tabellini, G., Political Economics: Explaining Economic Policy, The MIT Press, 2002.

Bebbington, A., Hickey, S., and Mitlin, D. C. E., Can NGOs Make a Difference?, Zed Books, 2008.

Morales Belpaire, J. and Serfilippi, E., «NGOs under autocracy,» CRED Working Papers, 2014.



Cómo citar

Morales Belpaire, J. (2017). DECENTRALIZED AID AND DEMOCRACY. Revista Investigación &Amp; Desarrollo, 2(16). Recuperado a partir de



Economía, Empresa y Sociedad