Here’s a question for all you development research types (especially the randomistas).
A lot of community-level capital development projects these days seem to involve a requirement that the beneficiary community make a contribution towards the development. Sometimes this is in the form of free labour, other times it is financial. So, for example, a new bore hole and pump may cost around $20,000; the donor will pay the bulk but ask that the community stump up $1,000*; communities that cannot or will not stump up do not get the new well. The theory, as I understand it, is that if the community have had to stump up then they will value the development more, be more likely to take care of it etc, and the development project will be more successful as a result. Conversely also, communities who do not stump up are assumed to not sufficiently want a new well, and thus the money is better spent elsewhere.
The second part of that theory has the obvious flaw that some communities may simply be unable to afford $1,000, but still it is a very seductive idea for directing aid to those areas which will benefit from it and value it most, and also increasing the likelihood of sustainability. If I were in charge of a programme offering such capital development grants I think I’d incorporate the requirement in my programme’s design.
But, does it really work? Or does the requirement for a local contribution simply slow down disbursement, miss out some needy communities altogether, and save the donor a negligible amount of money (unless so few communities can afford the contribution they don’t even spend the entire programme’s allocation)?
In particular I wonder whether if the community had to pay $1,000 for the new well then they might only value it at $1,000. Such a valuation might not even be completely irrational if the community sees other neighbouring communities also getting the new well for the same price (i.e. the wider programme effectively establishes the local price), and, following previous practice by the same and other donors in the area, the community may consider it a reasonable chance that if in 5-10 years time the pump is broken, some donor will offer to repair it for another token contribution of $1,000.
Moreover, assuming this is now a ‘community-owned’ well it is unlikely that it provides value to any one individual of over $1,000, especially when labour is so cheap, and the primary water fetchers (women) have less political influence, and thus individual incentives for maintenance may be dulled. Cohesive, well led communities can of course overcome these challenges, but they are the exception that proves the rule of the tragedy of the commons from which communal investments often suffer. And investing in local community governance is a long, expensive undertaking which does not sit well alongside a quick in-and-out capital development programme.
Has anyone ever done any research on this issue? The relatively long time periods required to judge sustainability might be one challenge, but I could also imagine how it might be possible to measure earlier proxy indicators of likely success within a couple of years of installation. Anecdotal evidence of success in NGO projects is not without interest in this area, but it might suffer from a question of attribution in relation to this measure versus other forms of support that the NGO provides as part of the integrated package.
Please enlighten me in the comments.
* I’m not a water engineer. These prices may be completely unrealistic. The exact numbers are not important to my basic point.