Development Aid and Economic Freedom: Are They Related?
For more than 50 years individual countries and international agencies have given aid to third world countries to promote economic development, yet poverty still persists in many recipient nations. In recent years development economists and agencies have increasingly recognized the importance of institutions that support property rights and economic freedom in promoting development. Nevertheless, nations continue to provide aid to less developed countries. This raises two important questions. Does the receipt of aid lead to increases or decreases in economic freedom, and are increases in economic freedom rewarded with more aid or punished with reduced aid?
Matt E. Ryan is a Research Fellow with the Independent Institute and Assistant Professor of Economics at Duquesne University.
Defense and Foreign PolicyEconomic FreedomEconomyForeign AidFree Market EconomicsInternational Economics and DevelopmentPhilosophy and ReligionTrade
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