Where The Money Is

October 17, 2008

“Mo’ money, Mo’ problems.”

-Notorious B.I.G.

Do I quote Notorious B.I.G. too much? Anyway, on the one hand, I do feel some vindication when theories I subscribe to make correct predictions. On the other hand, I wouldn’t be much of a person if I didn’t wish my more cynical beliefs were sometimes wrong. So it is with mixed feelings that I point to this New York Times article:

Mob Muscles Its Way Into Politics in Bulgaria
By DOREEN CARVAJAL and STEPHEN CASTLE
Published: October 16, 2008
Far from halting crime and violence, European Union aid to Bulgaria has effectively helped to spread corruption.

When the problem is that the institutions of liberal democracy are lacking, infusions of cash make the problem worse. Foreign aid should be considered a resource just like oil for the purpose of applying the theory of the “resource curse.”

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