Why Do Aid Agencies Exist?

$48.00 plus tax (Refund Policy)

Download / Buy Article:

Abstract:

This article seeks to explain the organisational set-up of foreign aid delivery from a Coasian perspective: Why are there many and different aid organisations and not just one? Why is foreign aid not transferred directly from donor to beneficiary? With zero transaction costs and fully shared preferences between donors and beneficiaries, there would be no need for aid agencies. Their role is not so much to transfer funds or goods and services to developing countries, but (a) to reduce ex-ante transaction costs and (b) to mediate between the diverging preferences of donors and recipients, and package aid flows in a contract that reduces ex-post uncertainties for donors. Outcomes differ according to types of agencies and aid delivery instruments.

Document Type: Research Article

DOI: http://dx.doi.org/10.1111/j.1467-7679.2005.00306.x

Publication date: November 1, 2005

Related content

Tools

Favourites

Share Content

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more