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The Risk of Resource Misappropriation in Community-Driven Development

Authors
Journal
World Development
0305-750X
Publisher
Elsevier
Publication Date
Volume
31
Issue
10
Identifiers
DOI: 10.1016/s0305-750x(03)00138-4
Keywords
  • Community-Driven Development
  • Aid Effectiveness
  • Elite Capture
  • Corruption
  • Poverty
  • Ngo

Abstract

Abstract Community-driven development (CDD) is being currently proposed as the main avenue to fighting poverty and circumventing the shortcomings of state-directed aid resources. One of the main difficulties in CDD programs lies in their vulnerability to capture by local elites. The paper discusses the possibility of mitigating this problem through a so-called leader-disciplining mechanism (LDM) that relies on a sequential disbursement procedure supported by a fraud detection mechanism. On the basis of the LDM framework, it is argued in particular that too quick and massive a rush on CDD may prove self-defeating in the sense that the share of aid resources actually reaching the poor will be low if donor agencies are impatient to achieve results.

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