Do NGOs Displace Government Funding and Harm Well‑Being?

In Ugandan villages where non-governmental organisations (NGOs) hired away the existing government health worker, infant mortality went up.

This happened in 39%[1] of villages that already had a government worker. The NGO arrived with funding and good intentions, but the likelihood that villagers received care from any health worker declined by ~23%.

Brain Misallocation

“Brain drain”, - the movement of people from poorer countries to wealthier ones, has been extensively discussed for decades[2]. But there's a different dynamic that gets far less attention: “brain misallocation”.

In many low- and middle-income countries (LMICs), the brightest talents are being incentivised towards organisations that don’t utilise their potential for national development. They’re learning how to get grants from multilateral alphabet organisations rather than build businesses or make good policy. This isn’t about talent leaving the country. It's about talent being misdirected and mistrained within it.

Examples

Nick Laing [...]

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Outline:

(00:36) Brain Misallocation

(01:16) Examples

(05:37) The Incentive Trap

(07:48) When Help Becomes Harm

(08:48) Conclusion

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First published:
October 23rd, 2025

Source:
https://forum.effectivealtruism.org/posts/6rmdyddEateJFWb4L/the-charity-trap-brain-misallocation

Linkpost URL:
https://gdea.substack.com/p/the-charity-trap-brain-misallocation

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Narrated by TYPE III AUDIO.