ABSTRACT
A strong political economy can be made that aid, particularly US aid, has strengthened the foundational elements of open societies and markets, of political democracies, and market economies. For example, many projects have clearly strengthened election systems, civil society organizations such as media and charities, labor unions and political parties, local governments, and public sector budgeting, accounting and auditing and taxation systems for greater accountability and financial capacity. Since the US aid in South Korea in particular was not specifically targeted to democracy, a major result of early aid was to shore up the dictatorial regime of Syngman Rhee, whose policies contributed to neither economic nor political liberalization. A discussion of aid effects on country governance and prospects for democracy should include all aid, civilian and military. Several initiatives by Jose Figueres and successor presidents began a qualitative reset of Costa Rican institutions and policies to give it a different development path than other Latin American countries.
