Abstract
This article defines the term ‘non-governmental organizations’ (NGOs) and describes how they operate. It reviews the growth of the NGO sector since the 1980s, examines the reasons why NGOs have proliferated, reviews evidence on NGO impact, and summarizes how economists have modelled and tested hypotheses about the role of NGOs in development assistance.KeywordsCharitable givingContract theoryDevelopment assistanceForeign aidGrameen BankHumanitarian and relief workImperfect informationIncomplete contractsInternational developmentInternational donorsNon-governmental organizationsNon-profit organizationsParticipation of the poorPoverty alleviationPrincipal agentPrivate voluntary organizationsPublic goodsVolunteerismJEL ClassificationsL31
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