Aid Crowd-Out: The Effect of NGOs on Government-Provided Public Services
Kellogg School of Management
Friday, April 19, 2019
Taylor-Hibbard Seminar Room (Rm103)
12:00 pm-1:15 pm
We study whether the presence of NGOs hinder or help the development of public services in poor countries. We do so in a context where both the government and a large NGO employ community health workers to provide basic health services. We show that when the NGO enters a village with a pre-existing government health worker, the total number of health workers in the community increases, but the number of government health workers decreases, and there is a reduction in total health service delivery. The evidence is consistent with the concern that NGOs can crowd out public services.