http://hbswk.hbs.edu/item/5721.html
what are the constraints for ULFA or is it merely lacking info about options or
do they hae hidden interests?
Umesh
Mistake 2: They Are Not Irrational; They Have Hidden Constraints: Case -- US
NOn Profits against poor country farmers
In 2005, the U.S. government passed legislation to increase food aid to
countries that were in dire need of such assistance. There was much support
among politicians and activists for this initiative. Not surprisingly, however,
there were also certain special-interest groups that opposed this legislation.
Here's what was surprising: One of the groups that voiced opposition was a
consortium of nonprofit organizations whose mission it was to lobby for an
increase in food aid to disadvantaged countries! What explains such seemingly
irrational and self-defeating behavior? Why would this group oppose legislation
that achieves precisely what it purports to want?
The answer lies not in understanding the group's interests but in
understanding its constraints. In order to increase the amount of food sent to
disadvantaged countries, the consortium had in the past partnered with American
farmers to lobby the U.S. government jointly for greater aid. Why did the
farmers join in this campaign? Because when the U.S. government increased food
aid, it bought more food from American farmers. As a result, both the farmers
and the nonprofits got what they wanted.
This case, however, was different. Mindful of escalating budget deficits,
Congress had decided that the only way to increase foreign food aid was to
purchase the food more cheaplynot from American farmers but from developing
countries. What would appear to be a double win for the nonprofits (increased
food aid and increased support for poor farmers in developing countries)
instead created a predicament. If the nonprofits supported the legislation,
they would be severing ties with their long-standing coalition partner, the
American farmer. Instead, the nonprofits decided that their long-term interests
were best served by opposing legislation. This may still seem like a
questionable decision on moral, ethical, or other grounds, but it seems
irrational only when we overlook the hidden constraints facing the nonprofits.
Umesh Sharma
Washington D.C.
1-202-215-4328 [Cell]
Ed.M. - International Education Policy
Harvard Graduate School of Education,
Harvard University,
Class of 2005
http://www.uknow.gse.harvard.edu/index.html (Edu info)
http://hbswk.hbs.edu/ (Management Info)
www.gse.harvard.edu/iep (where the above 2 are used )
http://jaipurschool.bihu.in/
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