Foreign aid has the same effect as the natural-resource curse because, like oil in the ground, it is money the leader can tap without raising taxes on labor — a 'free good' that sustains bad leaders in office and oppresses the public.

causalpending

Speaker

Bruce Bueno de Mesquita

Evidence Quote

foreign aid like oil in the ground is money that the leader can tap into without having to increase the taxes on labor it's essentially in that sense a free good

Source

Bruce Bueno de Mesquita on Democracies and Dictatorships 2/12/2007EconTalk
Created: 6/15/2026, 9:20:39 AM

My Notes

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