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Elite Capture Through Information Distortion: A Theoretical Essay

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153751939282934.pdf (439.6Kb)
Date
2014
Link to item file
http://www.nopoor.eu/publication/task-42-elite-capture-through-information-distortion-theoretical-essay
Dewey
Structure de la société
Sujet
Community-driven development; Aid effectiveness; Elite capture; Preference targeting; Information distortion
Journal issue
Journal of Development Economics;0304-3878
Volume
106
Publication date
01-2014
Article pages
250–263
Publisher
Elsevier
DOI
http://dx.doi.org/10.1016/j.jdeveco.2013.10.002
URI
https://basepub.dauphine.fr/handle/123456789/18040
Collections
  • Projet Nopoor
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Author
Platteau, Jean-Philippe
15656 Center of Research in the Economics of Development [CRED]
Somville, Vincent
14677 Centre de Recherche en Economie du Développement [CRED]
Wahhaj, Zaki
Type
Article accepté pour publication ou publié
Abstract (EN)
We investigate donor–beneficiary relationships in participatory development programmes,where (i) communities are heterogeneous and dominated by the local elite, (ii) the elite strategically proposes a project to the donor, knowing that the latter has imperfect knowledge of the needs of the target population. We analyse how changes in the donor's outside option or information about the needs of the target population affect elite capture. Our central, paradoxical result is that a more attractive outside option, or a higher quality of donor's information may end up encouraging the local elite to propose a project that better matches their own preference rather than the preference of the grassroots.Moreover, in the casewhere the noise in the donor's information follows a normal distribution, we find that a better outside option generally decreases elite capture but improved information about the needs of the target population is likely to increase elite capture.

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