Knowledge Problems and Incentive Problems

Course

Why is it difficult to give effective foreign aid? We discuss knowledge problems, incentive problems and feedback and learning.

Download
Options
Translate Practice Questions

Contributed Content (0)

Ask a Question

 
Please register or login to answer a question
 
user's picture

Are you suggesting that government officials are more efficient at identifying opportunities for and providing aid than private organisations? I would like to see the evidence that supports your statement. I still have to see an instance of a governmental enterprise that is more efficient than a private one in equality of conditions. The Paris Declaration and Accra Agenda for Action seem to me like a set of nice guidelines, but does that mean that they are being properly implemented and are yielding good results? We should judge by the results and not by the stated intentions.

First, there is no absolute separation as governmental aid is often executed by private enterprises like GIZ (former GTZ, InWent and DED as German agencies) which are by the way owned by the state. I think there can be no general conclusion if governmental or private organizations are more "effective" whatever you mean by this word as there are both positive and negative examples. If you are talking about the efficiency of identifying opportunities for profit obviously private organizations are better as this is usually their sole purpose. But is private profit a common aim which benefits societies as a whole? We saw in Bolivia its not. The model of state owned aid agencies operating like private agencies is pretty interesing. What is your alternative to the Paris Declaration and Accra Agenda for Action principles? In the end I guess you might agree that you yourself know better what you need than somebody from another continent.

Please register or login to answer a question
 
Please register or login to answer a question
Please register or login to ask a question