Should Cities Subsidize Nonprofit International Organizations

This article examines the contribution to the economic well being of cities made by policies that subsidize nonprofit international organizations (NIOs). The methods used entail a formal cost benefit analysis of Montreal International, a joint venture of the Canadian federal, the Quebec provincial, and the Montreal local governments. The case explores a wide set of theoretical and policy issues. Among those issues are the inability of: 1) economic impact statements to clarify the need for subsidies, 2) intangibles to justify subsidies, and 3) a subsidy policy to generate real growth. The article raises policy questions about the wisdom of subsidizing NIOs

Business · Commerce · Economics · Joint venture · Market economy · Policy analysis · Political science · Public economics · Subsidy · Fiscal Policy and Economic Growth · Public Administration · Finance