Suchergebnisse

GOAL OF A FOREIGN AID PROGRAM SHOULD BE ONE OF IMPROVING THE STANDARD OF LIVING OF A RECIPIENT COUNTRY. OFTEN,HOWEVER AID FUNDS ARE USED FOR MILITARY EXPENDITURES. THIS ARTICLE CONSIDERS THE REPLACEMENT OF UNTIED FOREIGN EXCHANGE AID WITH AID IN THE FORM OF CONSUMER GOODS.

FAMILIAR THEORIES OF MARKET FAILURE HAVE DIAGNOSED SHORTCOMINGS IN THE ECONOMY, BUT THEORIES OF GOVERNMENT FAILURE ARGUE THAT THE STATE IS INCAPABLE OF CORRECTING THEM. MORE THAN THAT, MANY CRITICISMS OF GOVERNMENT IMPLICITLY OR EXPLICITLY SEE FAILURE AS DUE TO FUNDAMENTAL SHORTCOMINGS OF DEMOCRACY. THIS PAPER ARGUES THAT DEMOCRATIC FORMS OF GOVERNMENTS ARE NOT NECESSARILY INEFFICIENT RELATIVE TO OTHER TYPES OF DECISIONMAKING, FOR EXAMPLE, AUTHORITARIAN GOVERNMENT, AND THAT IF INDIVIDUALS ARE AS RATIONAL IN THEIR ACTIONS AND EXPECTATIONS AS VOTERS AS THEY ARE MEANT TO BE IN THE MARKET, THEN FAILURES ATTRIBUTED TO DEMOCRACY LESSEN OR DISAPPEAR ALTOGETHER. THE PAPER DEMONSTRATES HOW MORE DEMOCRACY, I.E. THE USE OF THE INITIATIVE AND REFERENDUM, MAY ACTUALLY IMPROVE THE EFFICIENCY OF GOVERNMENT BY GIVING THE MASS OF CITIZENS THE INFORMATION AND OPPORTUNITY TO FRUSTRATE EFFORTS TO THE CLASSE POLITIQUE TO FORM A COALITION AGAINST THE VOTERS. EMPIRICAL EXAMPLES ARE DRAWN FROM THE EXPERIENCE OF SWITZERLAND.

Terrorists act rationally; one of their dominating goals is to attract public attention to their cause. As a consequence, the authorities should refrain from attributing a particular terrorist incident to any one group. They should stress that many different actors must be considered as the possible perpetrators. Such an information policy sharply reduces terrorists' rewards. The approach suggested is complementary to the policies currently in use; it does not make police measures unnecessary. (Abstract amended)