Should Economists Help Authoritarian Regimes?

I was rather enraged when Sir Howard Davies announced his resignation from the position of Director of the London School of Economics (my alma mater) on account of links that had been exposed between the School and the Gaddafi regime.

So why was I enraged? Afterall, if the School had sinned, someone responsible for its decisions ought to have resigned. In that light, the Davies resignation sounds logical.

But, NO! I was enraged because Davies shouldn't have resigned because he advised the Libyan regime on the British government's request! And even if he should have resigned, he should certainly not have resigned alone. Gaddafi has been in power since French President Sarkozy was 14, U.S. President Obama was 8 and British Prime Minister David Cameron was 3! That's how long the three NATO big-wigs have got this wrong. So why should Davies alone resign and all these other people stay in their positions of greater power and influence? Perhaps, Davies's resignation was a personal act of selflessness, perhaps it was forced by the media or the British government. But didn't we try to plug a sink-hole to save the sinking Titanic? His resignation stinks of Western hypocrisy in dealing with regimes like Gaddafi's.

I came across an excellent article on Project Syndicate. Titled 'Saif Qaddafi and Me', Dani Rodrik explores the role of advisors to authoritarian regimes citing the example Davies among many others. Now you decide for yourselves if Davies is guilty as charged or if someone from the British Government ought to have resigned instead, if at all.

"The conundrum that advisers to authoritarian regimes face is akin to a long-standing problem in moral philosophy known as the dilemma of “dirty hands.” A terrorist is holding several people hostage, and he asks you to deliver water and food to them. You may choose the moral high ground and say, “I will never deal with a terrorist.” But you will have passed up an opportunity to assist the hostages. Most moral philosophers would say that helping the hostages is the right thing to do in this instance, even if doing so also helps the terrorist."

Full article: http://www.project-syndicate.org/commentary/rodrik55/English