Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/4256
Authors: 
Metzger, Laura
Nunnenkamp, Peter
Omar Mahmoud, Toman
Year of Publication: 
2008
Series/Report no.: 
Kiel Working Paper 1414
Abstract: 
Having passed the "market test", private aid is claimed by its proponents to be better-targeted than official development assistance (ODA). But empirical evidence is largely lacking. We contribute to closing this gap by performing a case study of Nestlé, one of the frontrunners among multinational corporations being actively involved in the alleviation of poverty. The targeting of Nestlé's aid is compared to that of Swiss ODA and NGO aid, testing for both altruistic and selfish aid motivations. It turns out that Nestlé favored more democratic but also more corrupt recipient countries. Moreover, Nestlé's aid clearly lacks focus in terms of targeting poor countries, which appears to be the downside of the strong link between commercial presence and aid. By contrast, Swiss ODA and NGO aid is more altruistic and poverty-oriented.
Subjects: 
Private aid
Corporate social responsibility
Official development assistance
NGO aid
Millennium Development Goals
Nestlé
Aid allocation
JEL: 
M14
F35
Document Type: 
Working Paper

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