Elite capture through information distortion: A theoretical essay

Platteau, Jean-Philippe and Somville, Vincent and Wahhaj, Zaki (2014) Elite capture through information distortion: A theoretical essay. Journal of Development Economics, 106 . pp. 250-263. ISSN 0304-3878. (doi:https://doi.org/10.1016/j.jdeveco.2013.10.002) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

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Official URL
http://doi.org/10.1016/j.jdeveco.2013.10.002

Abstract

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 case where 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.

Item Type: Article
Uncontrolled keywords: Community-driven development; Aid effectiveness; Elite capture; Preference targeting; Information distortion
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Zaki Wahhaj
Date Deposited: 14 May 2015 10:36 UTC
Last Modified: 15 May 2015 09:28 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/48410 (The current URI for this page, for reference purposes)
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