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Economic Development and Cultural Change


This paper provides new evidence on the role of official development assistance in program implementation. Governments and donors around the world are promoting participatory development and community management program s that transfer responsibilities and rights to local communities. Large-scale implementation of these schemes requires significant funding from multiple sources. I consider a uniform ins titutional reform in Nepal and find that the scope of program implementation and the characteristic s of new institutions vary across types and sources of aid. In my analysis, I develop a geographic matching estimator that compares adjacent communities receiving different types of assistance. This heterogeneity in institutions associated with funding that I find in this paper complicates the program evaluation problem and may impact the success of the reform.



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