Article,

The reformers' dilemma: media, policy ownership, and reform

, and .
European Journal of Law and Economics, 23 (3): 237--250 (2007)

Abstract

Peter T. Leeson1 Contact Information and Christopher J. Coyne2 (1) Department of Economics, West Virginia University, P.O. Box 6025, Morgantown, WV 26506-6025, USA (2) Department of Economics, Hampden-Sydney College, Hampden-Sydney, VA 237943, USA Received: 3 March 2006 Accepted: 26 April 2007 Published online: 6 July 2007 Abstract Current proposals for strengthening policy ownership in reforming economies are fundamentally flawed. Modeling the reform process as a prisoners’ dilemma demonstrates that political agents must overcome this conflict of interests before present proposals for bolstering ownership will work. A politically autonomous mass media is one important mechanism enabling political agents to do this. Reforming countries without free media face an uphill battle overcoming the problems associated with transition. We test our theory by investigating the relationship between media freedom, foreign aid, and economic development in 26 post-socialist transition countries. The results of this analysis support our theory.

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