Don’t Local Organizations Love Costly Overhead and Boozy Celebrations Too?

Aid
Author

Didelphis

Published

May 7, 2023

USAID wants to give more funding directly to local organizations overseas instead of to giant non-profit intermediaries in Washington.

According to The Economist, USAID plans to do that in three ways:

  1. By asking the U.S. Congress for permission to boost staffing 38 percent, with the hope that will give contract officers more time to work with smaller organizations.

  2. By making itself more accessible to small organizations oveseas. This includes a new website, workwithusaid.org, that will help them bid for grants.

  3. By pressuring its traditional D.C.-based partners – such as abt Associates, Chemonics International and Palladium – to work more with local organizations and train them so they can work directly with USAID.

The Economist concludes it’s “better to fund local communities directly than private contractors in Washington who spend public money on costly overheads – and boozy celebrations.” The article doesn’t explain why we should assume local organizations won’t spend public money on costly overhead and boozy celebrations too.