The unintended consequences of foreign aid

“So why did you start a communal farm?” I asked James. The young man, aged about 30, lived in a village of no more than 200 households cut out of the surrounding jungle and swamp. He’d organized about forty friends and neighbors into a collective to farm rice and cassava.

I’m interested in the roots of such collective action, especially in war torn and ethnically-riven societies like Liberia. Often a group action makes perfect sense: a collective can be more efficient than individual production when farming rice. Yet not everyone jumps at the opportunity, let alone be the one who instigates the group.

More puzzling, many groups serve a purpose greater than themselves. James’ communal rice group was officially a peacebuilding organization. They intervene in village conflicts, make contributions to their poorer neighbors, and train their neighbors in conflict resolution.

Is this altruism, or civic duty, and (if so) from whence does it spring? More importantly, can governments, churches and NGOs boost this ethereal quantity? Most of my randomized experiments in Uganda and Liberia are designed to get at this question, outside the lab.

What kind of man is James? A clever one. “The thing about these NGOs,” he said, referring to the dozens of relief agencies that have swarmed northern Liberia to rebuild, “they really seem to like groups. If you try to ask them for something, they cannot give it to you. But if you form a group, then they can come to you and bring you assistance.”

Now there is an interesting randomized experiment.