On the Samaritan’s Dilemma, Foreign Aid, and Freedom

Joao Faria and Daniel Arce

Economies, 2018, vol. 6, issue 4, 1-17

Abstract: This paper presents an extension of the two-period Samaritan’s Dilemma in order to analyze the potential for foreign aid to promote freedom. An example is the United States’ recent opening towards Cuba. It is shown that a donor nation’s dual concern for economic reforms and greater freedoms can exacerbate the Samaritan’s Dilemma, even when economic aid is coupled with targets for freedom. By contrast, a policy that is focused on freedom alone can potentially resolve the Samaritan’s Dilemma. Such a policy requires the donor to temper the degree of altruism that motivates its provision of economic aid to the recipient nation.

Keywords: Altruism; Leading by example; Policy formulation; Hierarchical games (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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