Does marketisation of aid reduce the country-level poverty targeting of private aid agencies?
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SourceEuropean Journal of Development Research, 19, 4, (2007), pp. 636-657
Article / Letter to editor
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SW OZ RSCR CAOS
European Journal of Development Research
SubjectAnthropology and Development Studies
This article addresses the question whether private aid agencies (PAAs) that operate in a market-like environment prefer to target different countries compared to their counterparts that operate in a more protected environment. The mainstream view is that competition for funds leads to a focus on middle-income countries where PAAs can easily obtain results. An alternative view considers PAA country choice more dependent on donor priorities. We collected data on aid allocation from 15 private agencies in Germany, Norway and the United States. The German organisations, which operate in the most protected environment, are least focused on the politically and economically poorly performing countries, whereas Norwegian and US-based private agencies show a higher degree of poor-country targeting. These results suggest that critics of marketisation may overestimate its pitfalls regarding country allocation. The poor-country targeting of PAAs proved to be related to the country choices made by bilateral donors, indicating the merit of the slipstream hypothesis.
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