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Title:Poverty and governance: The contest for aid PDF Logo
Authors:Epstein, Gil S.
Gang, Ira N.
Issue Date:2008
Series/Report no.:Research paper / UNU-WIDER 2008.76
Abstract:Countries compete with one another for funds distributed by nongovernment organizations (NGOs). We examine the competition over poverty and governance conducted by a NGO in the allocation of its funds among potential recipient countries. The NGO in its decisionmaking process also takes into account the initial conditions of each potential recipient, including the current quality of governance and wealth (poverty). For example, all else equal, the poorer country will have a higher probability of obtaining funds; or, the better the applicant's governance, the greater are its gains. Moreover, the maximum aid a country can obtain depends on its wealth. Investment in good governance, the wealth/poverty status of the applicant, and its current quality of governance will in conjunction determine the funds potential recipients can expect to obtain. We also consider recent changes in the levels of these factors in our attempt to understand the roles these factors play in the competition for aid, and the outcome for the quality of governance.
Subjects:nongovernment organization
Document Type:Working Paper
Appears in Collections:WIDER Research Papers, United Nations University (UNU)

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