Funding Civil Society? Bilateral Government Support for Development NGOs

Research on the determinants of foreign aid tends to focus on the relationship between donor country priorities and recipient state characteristics, but donors also make decisions about which organizations and programs within countries will receive assistance. Although NGOs increasingly have been recipients of foreign aid, few data are available to investigate which organizations within a given country receive that funding. Donors may prioritize structural characteristics of NGOs or their local ties—or they may seek a combination that blends concern about efficiency and accountability with an interest in developing national civil society. We use original data from Cambodia to explore whether aid is likely to go to managerial organizations (professionalized NGOs and NGOs that utilize modern management tools) or to organizations that are embedded in the domestic context. We argue that managerialism provides legitimacy for NGOs by signaling capacity and accountability to donors, increasing the likelihood of government funding. We argue that local embeddedness also confers legitimacy by aligning community ties and networks to rights-based development, increasing the likelihood of government funding. We find general support for the managerialism argument, but donor agencies do not prioritize direct funding for “indigenous” NGOs—not even among those with high levels of managerialism.