Posts Tagged "intermediaries"

Where’s the money going?

Posted by on Oct 12, 2012

One estimate has two cents in every aid dollar reaching the beneficiary (source: Jeffrey Sachs). Project and administration costs can strip off 10-20% each time a layer is introduced, e.g. the UK DFID contract a fund manager who contracts a UK-based INGO who contracts an in-country programme office who in turn contracts local partners. Fiduciary risk is high, with capacity problems in-country stalling project start-up and rollout, funds being misdirected or misappropriated and items being damaged before reaching the beneficiary. Many of the micro-actions amenable to promotion via mobile phones require no intermediary at all except to produce the media that stimulates reaction and monitor and track performance. Experience to date has shown that partnerships are sometimes needed, for example in providing eye tests or glasses. Recruiting young people to try new products will also require partnership with supply and logistic agents. With all these considerations, the micro-action model still seems to greatly reduce the cost and complexity of intermediaries compared to many other attempted...

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