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File2-page154 - Duflo(2001 Human Capital government in...

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Unformatted text preview: Duflo (2001) Human Capital government in carrying out this function – comparative advantage is believed to originate from three main sources (i) NGOs may care more about redistribution to the poor than government (indeed they are typically non-profits set up in response to state failure to reach poor or vulnerable groups) – value driven (ii) NGOs often work closely with and know the community where the social project is being carried out – information set on who is poor or vulnerable is thus typically good and this combined with their pro-poor preferences can improve targeting performance (iii) due to the preceding two reasons, NGOs are believed to have cost advantages over government in terms of providing social protection – it is partly in recognition of these operational advantages that NGOs have been receiving increasing amounts of bilateral, multilateral and government assistance Nascent area of research – need to construct models as to why NGOs may have a comparative advantage over the state – then subject these ideas to empirical testing – these idea may not turn out be true. Development Economics, LSE Summer School 2007 151 ...
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