Working paper: What Do Non-Governmental Organizations Do?
Non-governmental organizations play an increasingly important role in international development. They serve as a funnel for development funds both from individual donors in wealthy countries and from bilateral aid agencies. At the same time, NGOs are frequently idealized as organizations committed to "doing good" while setting aside profit or politicsa romantic view that is too starry-eyed, according to HBS professor Eric D. Werker and Faisal Z. Ahmed. Their paper argues that the strengths and weaknesses of NGOs easily fit into economists' conceptualization of not-for-profit contractors.