From substitution to complementarity: some econometric evidence on the evolving NGO-State relationship in Pakistan

This paper investigates the relationship between government policies and quasi-public institutions such as Non-Governmental Organizations (NGOs). In particular, it attempts to identify under which conditions they can act as complements or substitutes. The case of Pakistan is used to motivate three sets of research questions: (a) Is there credible evidence of government policy failure in Pakistan? (b) If so, have any NGOs emerged in response to this, to act as either complements to or substitutes for policies? (c) What are the key characteristics of any such NGOs and how might they contribute to overall NGO success? Drawing upon the experience of the Aga Khan Rural Support Program in northern Pakistan, the paper uses both qualitative and econometric techniques to help answer these questions.