Need, Merit, Self-Interest or Convenience? Exploring Aid Allocation Motives of Grassroots International NGOs
Corresponding Author
John-Michael Davis
Interdisciplinary and Global Studies Division, Worcester Polytechnic Institute, Worcester, MA, USA
Correspondence to: John-Michael Davis, Interdisciplinary and Global Studies Division, Worcester Polytechnic Institute, 100 Institute Road, Worcester, MA 01609, USA.
E-mail: jdavis4@wpi.edu
Search for more papers by this authorLiam Swiss
Department of Sociology, Memorial University of Newfoundland, St. John's, NL, Canada
Search for more papers by this authorCorresponding Author
John-Michael Davis
Interdisciplinary and Global Studies Division, Worcester Polytechnic Institute, Worcester, MA, USA
Correspondence to: John-Michael Davis, Interdisciplinary and Global Studies Division, Worcester Polytechnic Institute, 100 Institute Road, Worcester, MA 01609, USA.
E-mail: jdavis4@wpi.edu
Search for more papers by this authorLiam Swiss
Department of Sociology, Memorial University of Newfoundland, St. John's, NL, Canada
Search for more papers by this authorAbstract
Despite substantial scholarly attention given to aid allocation motives of state agencies and professionalized non-governmental organizations (NGOs), privately funded grassroots international NGOs (GINGOs), which have rapidly emerged in the global North, have escaped academic analysis. Using an original dataset of 948 Canadian NGOs, this study compares country aid allocation patterns along competing variables of need, merit, self-interest and convenience between professionalized, mid-sized independent and grassroots international NGOs. Our results underscore the importance of a disaggregated analysis yet reveal similar aid allocation trends between all three NGO groups and show significant herding behaviour. These findings question the added value of the growing phenomena of GINGOs. © 2020 John Wiley & Sons, Ltd.
Open Research
Data Availability Statement
The data that support the findings of this study are available from the corresponding author upon reasonable request.
References
- Alesina A, Dollar D. 2000. Who gives foreign aid to whom and why? Journal of Economic Growth 5(1): 33–63.
- Appe S, Oreg A. 2019. Lost and Found in Upstate New York: Exploring the Motivations of “Lost Boys” Refugees as Founders of International Nonprofit Organizations. Administration & Society 0(0): 1–30.
- Appe S, Schnable A. 2019. Don't reinvent the wheel: possibilities for and limits to building capacity of grassroots international NGOs. Third World Quarterly 40(10): 1832–1849.
- Appe S, Telch F. 2019. Grassroots international NGOs: using comparative interpretive policy analysis to understand meanings in private development aid. Journal of Comparative Policy Analysis 22(1): 30–46.
- Banks, N. & Brockington, D. (2019). Mapping the UK's Development NGOS: Income, Geography and Contributions to International Development. The University of Manchester Global Development Institute: Working Paper Series.
- Baulch B. 2006. Aid distribution and the MDGs. World Development 34(6): 933–950.
- Berthélemy JC. 2006. Bilateral donors' interest vs. recipients' development motives in aid allocation. Do all donors behave the same? Review of Development Economics 10(2): 179–194.
10.1111/j.1467-9361.2006.00311.x Google Scholar
- Berthélemy JC, Tichit A. 2004. Bilateral donors' aid allocation decisions: a three dimensional panel analysis. International Review of Economics and Finance 13(3): 253–274.
10.1016/j.iref.2003.11.004 Google Scholar
- Birdsall, N. (2004). Seven deadly sins: Reflections on donor failings. Reform and Growth: Evaluating the World Bank Experience, 181.
- Birdsall N, Claessens S, Diwan I. 2003. Policy selectivity foregone: debt and donor behavior in Africa. World Bank Economic Review 17(3): 409–435.
- Brass J. 2012. Why do NGOs go where they go? Evidence from Kenya. World Development 40(2): 387–401.
- Brinkerhoff JM. 2012. Creating an enabling environment for diasporas' participation in homeland development. International Migration 50(1): 75–95.
- Brown S, Swiss L. 2013. The hollow ring of donor commitment: country concentration and the decoupling of aid effectiveness norms from donor practice. Development and Policy Review 31(6): 737–755.
- Burnside C, Dollar D. 2000. Aid, policies and growth. American Economic Review 90(4): 847–868.
- Büthe T, Major S, Souza ADM. 2012. The politics of private foreign aid: humanitarian principles, economic development objectives, and organizational interests in NGO private aid allocation. International Organization 66(4): 571–607.
- Büthe, T., Souza, A. D. M. & Major, S. (2013). Private vs. public allocation of U.S. humanitarian and development aid. Conference on Research Frontiers in Foreign Aid, Princeton University.
- Canavire G, Nunnenkamp P, Thiele R, Triveño L. 2006. Assessing the allocation of aid: developmental concerns and the self-interest of donors. The Indian Economic Journal 54(1): 26–51.
10.1177/0019466220060103 Google Scholar
- Charitydata.ca. (2017). Limitations and Caveats. Retrieved June 24, 2018: https://www.charitydata.ca/terms/
- Clifford D. 2016. International charitable connections: the growth in number, and the countries of operation, of English and Welsh charities working overseas. Journal of Social Policy 45(3): 453–486.
- Cohen D, Jacquet P, Reisen H. 2007. Loans or grants? Review of World Economics 143(4): 764–782.
- Cooley A, Ron J. 2002. The NGO scramble: organizational insecurity and the political economy of transnational action. International Security 27(1): 5–39.
- Costa MM. 2016. What influences the location of nonprofit organizations? A spatial analysis in Brazil. Voluntas: International Journal of Voluntary and Nonprofit Organizations 27(3): 1064–1090.
- Davis JM. 2019a. Real “non-governmental” aid and poverty: comparing privately and publicly financed NGOs in Canada. Canadian Journal of Development Studies 40(3): 369–386.
- Davis JM. 2019b. Comparing the prevalence and organizational distinctiveness of faith-based and secular development NGOs in Canada. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations 30(6): 1380–1392.
- Davis, J. M. (2020). Canada's GINGOs: who are they, what are they doing, and what role for the future? Development in Practice (forthcoming).
- Desai RM, Kharas H. 2018. What motivates private foreign aid? Evidence from internet-based microlending. International Studies Quarterly 62(3): 505–519.
- Dollar D, Levin V. 2006. The increasing selectivity of foreign aid, 1984–2003. World Development 34(12): 2034–2046.
- Dreher A, Mölders F, Nunnenkamp P. 2010. Aid delivery through non-governmental organisations: does the aid channel matter for the targeting of Swedish aid? The World Economy 33(2): 147–176.
- Dreher A, Nunnenkamp P, Öhler H, Weisser J. 2012. Financial dependence and aid allocation by Swiss NGOs: a panel TOBIT analysis. Economic Development and Cultural Change 60(4): 829–867.
- Dreher A, Nunnenkamp P, Thiel S, Thiele R. 2012. Aid allocation by German NGOs: does the degree of official financing matter? The World Economy 35(11): 1448–1472.
- Dreher A, Nunnenkamp P, Thiele R. 2008. Does US aid buy UN general assembly votes? A disaggregated analysis. Public Choice 136(1/2): 139–164.
- Edwards M, Hulme D. 1995. GO performance and accountability. In Beyond the Magic Bullet: NGO Performance and Accountability in the Post-Cold War World, M Edwards, D Hulme (eds). Kumarian press: West Hartford, CT.
- Edwards M, Hulme D. 1996. Too close for comfort? The impact of official aid on nongovernmental organizations. World Development 24(6): 961–973.
- Edwards M, Hulme D. 1997. Too close for comfort? The impact of official aid on NGDOs. In NGDOs, State and Donors, Too Close for Comfort? M Edwards, D Hulme (eds). Macmillan press: London.
- Fechter AM. 2019. Development and the search for connection. Third World Quarterly 40(10): 1816–1831.
- Ferris E. 2011. Faith and humanitarianism: It's complicated. Journal of Refugee Studies 24(3): 606–625.
- Fisher WF. 1997. Doing good? The politics and antipolitics of NGO practices. Annual Review of Anthropology 26(1): 439–464.
- Fleck RK, Kilby C. 2006. How do political changes influence US bilateral aid allocations? Evidence from panel data. Review of Development Economics 10(2): 210–223.
- Fowler A, Biekart K. 1996. Do private agencies really make a difference? In Compassion and Calculation: The Business of Private Foreign Aid, D Sogge et al. (eds). Pluto Press: London; 107–135.
- Fruttero A, Gauri V. 2005. The strategic choices of NGOs: location decisions in rural Bangladesh. Journal of Development Studies 41(5): 759–787.
- Fylkesnes J. 2019. Motivations behind citizen aid: Norwegian initiatives in the Gambia. Third World Quarterly 40(10): 1799–1815.
- Gelman A. 2008. Scaling regression inputs by dividing by two standard deviations. Statistics in Medicine 27(15): 2865–2873.
- Hoeffler A, Outram V. 2011. Need, merit, or self-interest—what determines the allocation of aid? Review of Development Economics 15(2): 237–250.
- Kaufmann D, Kraay A, Mastruzzi M. 2011. The worldwide governance indicators: methodology and analytical issues. Hague Journal on the Rule of Law 3(2): 220–246.
- Keck M. 2015. Comparing the determinants of US-funded NGO aid versus US official development aid. Voluntas: International Journal of Voluntary and Nonprofit Organizations 26(4): 1314–1336.
- Kinsbergen S. 2019. The legitimacy of Dutch do-it-yourself initiatives in Kwale Country, Kenya. Third World Quarterly 40(10): 1850–1868.
- Kinsbergen S, Schulpen L, Ruben R. 2017. Understanding the sustainability of private development initiatives: what kind of difference do they make? Forum for Development Studies 44(2): 223–248.
- Koch DJ, Dreher A, Nunnenkamp P, Thiele R. 2009. Keeping a low profile: what determines the allocation of aid by non-governmental organizations? World Development 37(5): 902–918.
- Kuziemko I, Werker E. 2006. How much is a seat on the security council worth? Foreign aid and bribery at the United Nations. Journal of Political Economy 114(5): 905–930.
- Langbein L, Knack S. 2010. The worldwide governance indicators: six, one, or none? The Journal of Development Studies 46(2): 350–370.
- Loman B, Pop I, Ruben R. 2011. Follow the leader: how Dutch development NGOs allocate their resources—the contradictory influence of donor dependency. Journal of International Development 23(5): 641–655.
- Nancy G, Yontcheva B. 2006. Does NGO aid go to the poor? Empirical evidence from Europe (no. 6-39). International Monetary Fund 6(39): 1–23.
- Neumayer E. 2002. Is good governance rewarded? A cross-national analysis of debt forgiveness. World Development 30: 913–930.
- Nunnenkamp P, Öhler H. 2011. Aid allocation through various official and private channels: need, merit, and self-interest as motives of German donors. World Development 39(3): 308–323.
- Nunnenkamp P, Thiele R. 2006. Targeting aid to the needy and deserving: nothing but promises? The World Economy 29(9): 1177–1201.
- Nunnenkamp P, Weingarth J, Weisser J. 2009. Is NGO aid not so different after all? Comparing the allocation of Swiss aid by private and official donors. European Journal of Political Economy 25: 422–438.
- Organisation for Economic Co-operation and Development (OECD). (2018). DAC List of ODA Recipients. Accessed 24 June 2018, available here: http://www.oecd.org/dac/stats/documentupload/DAC_List_ODA_Recipients2014to2017_flows_En.pdf
- Riddell RC, Bebbington A, Peck L. 1995. Promoting development by proxy. An evaluation of the development impact of government support to Swedish NGOs. SIDA: Stockholm.
- Schnable A. 2015. New American relief and development organizations: voluntarizing global aid. Social Problems 62(2): 309–329.
- Smillie I, Helmich H. 1993. Non-governmental Organizations and Governments: Stakeholders for Development. OECD: Paris.
- Swiss L. 2018. The Globalization of Foreign Aid: Developing Consensus. Routledge: New York, New York.
- Swiss L, Brown S. 2015. The aid orphan myth. Third World Quarterly 36(2): 240–256.
- Tafa, R. C. (2018) Government Funding of Registered Charities in Canada. Master thesis submitted to the University of Ottawa. https://ruor.uottawa.ca/handle/10393/37646
- Tomlinson, B. (April, 2016). Small and medium-sized Canadian civil society organizations as development actors: a review of evidence. Inter-Council Network of Provincial and Regional Councils for International Cooperation (ICN).
- Vakil AC. 1997. Confronting the classification problem: toward a taxonomy of NGOs. World Development 25(12): 2057–2070.
- Vivian J. 1994. NGOs and sustainable development in Zimbabwe: no magic bullets. Development and Change 25(1): 167–193.