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

  title={On the Samaritan’s Dilemma, Foreign Aid, and Freedom},
  author={Jo{\~a}o Ricardo Faria and Daniel G. Arce},
  journal={Development Economics: Macroeconomic Issues in Developing Economies eJournal},
  • J. Faria, Daniel G. Arce
  • Published 19 March 2018
  • Economics
  • Development Economics: Macroeconomic Issues in Developing Economies eJournal
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… 
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