Targeting of and outreach to the poor by rural development nonprofit organizations in Cameroon

Abstract

The importance of nonprofit organizations such as rural development organizations, farmers associations and common initiative groups as drivers of change in rural areas has been generally recognized in the economics of nonprofit organizations. While the economic theories attempt to explain the formation and functioning of nonprofit organizations, the targeting and outreach performance of these organizations has received little attention and at best is empirically divergent. Using the example of a nonprofit rural development organization in North West Cameroon, this paper analyzes the relative poverty of beneficiaries and non beneficiaries of its small scale fish farming program as a proxy for targeting efficiency. Poverty is measured through multiple indicators as well as household incomes. The results show that the nonprofit organization did a commendable job in serving poor communities, although its self targeting approach led to a disproportionately higher share of beneficiaries from the moderately poor and better-off terciles than from the poorest. Beneficiaries also had higher asset values and incomes than nonbeneficiaries, although the contribution of the fish farming activity to these was insignificant. This means that these households were already better-off prior to the program and not necessarily as a consequence of service delivery. The paper concludes with the need for relative poverty assessments prior to service delivery for improved targeting and outreach performance, while considering the additional costs involved.