Showing posts with label International Policy Network. Show all posts
Showing posts with label International Policy Network. Show all posts

Tuesday, May 05, 2015

The 2nd PRPX, June 2008 in Hong Kong

These are my notes after the 2nd Pacific Rim Policy Exchange (PRPX), held in June 4-5,2008, at JW Marriott Hotel, Hong  Kong. It was sponsored by four free market-oriented think tanks: Americans for Tax Reforms (ATR, www.atr.org, US), Property Rights Alliance (PRA, www.propertyrightsalliance.org, US), International Policy Network (IPN, UK), and Lion Rock Institute (LRI, www.lionrockinstitute.org HK).



Liberty and Property Rights in the Pacific Rim
June 2008

Liberty is a concept, an ideal, that is often associated with the collective. Individual liberty is often subsumed under general concepts like collective liberty and national sovereignty. This is wrong because if liberty and freedom is to have serious meaning, they must redound to individual liberty. The collective is composed of individuals. If individuals are considered as plain adjuncts and appendages of the collective, then only the leaders of the collective have liberty and power to selectively choose what rights and liberty the individuals can have, and what rights and liberty they cannot have.

The main reason why individual liberty is often restrained in favor of “collective liberty”, is supposedly to ensure equality in society. Growth without equity, in this belief, is undesirable and thus, the state must always step in to take away the “excess” income and savings of the hard-working individuals and “excess” profit and surpluses of efficient corporations. Then use the collections to pay for the salaries and benefits of the administrators of the collective (the bureaucracy and politicians in government) and the excess be distributed to the poor, state enterprises, and some inefficient but favored private enterprises, in the form of subsidies.

The subjects of liberty and property rights were at the center of the recent PRPX in Hong Kong. It was the second event after the 1st PRPX held in Honolulu, Hawaii, last May 2007. 

The HK event was composed of 6 panels or subjects, three per day. These were 
(1) Real property rights: traditional rights, formal protection and economic growth; 
(2) Taming the beast: accountability, deregulation and transparency; 
(3) Free market health care reform: keeping healthy with a healthy market; 
(4) Intellectual property rights (IPR): protecting the engine of innovation; 
(5) Adaptation or accommodation: energy production and its consequences; and 
(6) Globalization: trade, regulation and international markets. 

The speakers came from China, India, S. Korea, Sri Lanka, Taiwan, Hong Kong, Australia, Canada, US, UK and Peru. Other participants came from other Asian countries.

Among the panels that attracted me most were those on real property rights, IPR and taming the beast (the state). It’s very enlightening, or perhaps depressing, to know that many governments around the world are responsible for very complicated, time-consuming and costly procedures in registering a property. The result is that many owners of real properties like land, do not have peace of mind in saying that they indeed have full control of their lands, whether to keep it for whatever use, or sell and exchange it for money or other real properties. This lack of peace of mind force them to sell their land at a much lower price, or discourage them from putting in new and bigger investment to develop their real properties.

Protecting IPR – someone’s song composition, research data and methodology, technological invention, medical innovation, and so on – is also very important. If another singer can just steal a lesser-known musician’s songs and record them and claim them as his own composition, the latter would feel robbed. If other companies, including state enterprises, can just steal the formula of an effective and best-selling pharmaceutical product because they were allowed to do so by the state in the name of “national emergencies”, the company that invented that medical product (and spent many years and several hundred million dollars in R&D) would also feel robbed. And there are many governments, upon the prodding of some activist groups, itching to do this kind of intervention and legalized stealing.

Above photo, Barun Mitra from India and Maria del Carmen Delgado from Peru speaking on real property rights. Below, Alec Van Gelder of IPN speaking about IPR.

To me, such unnecessary bureaucracies in registering real or physical properties, and disrespect of the IPR of an innovator company, is one example of “government failure”. I firmly believe that protection of the citizens’ right to life, right to dignity and right to private property, are the state’s main function. Running and operating banks, power plants, pension funds, hospitals, universities, or engaging in rice trading and broadband deals, are secondary or unnecessary state functions because these are better left to the private sector in a deregulated and competitive business environment. There is pressure on private enterprises to perform well and satisfy customers in a competitive and level playing field, while there is complacency, resulting in mediocrity, when a service is under the hands of government. This is because private enterprises depend on revenues from customers who voluntarily come to get their services, while government enterprises depend on subsidies from taxes and fees that are forcibly collected from the people.

And how could one tame the beast? A Hong Kong speaker suggested “declaw it, one claw at a time, and blind it, if you can”. I agree with this proposal, although achieving it is very difficult because the number of claws, those various regulations, seem to be increasing, not decreasing. And very often, those regulations are not transparent; one would not know them all, including the fees, hidden requirements, and the number of days, weeks or months to wait, until he/she gets there, in front of the concerned regulatory office. Forcing the government, both national and local government units, to become more transparent should be a good challenge for citizens since the total cost of (a) taxes and fees + (b) cost of compliance can be high which siphons the people’s energy and resources away from actual productive undertaking.

Aside from the six panels or subjects, the conference also featured 2 luncheon speakers and 2 dinner speakers on those 2 days, and all of them were articulate speakers. But the most influential of them all was Jimmy Lai, founder of Next Media communications in HK. He was also the main character in a documentary called “The call of the Entrepreneur” produced by Acton Institute. The man had a typical rags-to-riches story due to non-typical character of super-hard work and strict business ethics. He was emotional in the documentary when he related how hard his and his family’s life was, both in mainland China until he was a teen-age migrant worker in HK, and how his philosophy in life changed after he read Friedrich Hayek’s “The Road to Serfdom”.

Is democracy a political condition? Many people would nod in answering this question. But Jimmy Lai says NO, because for him, democracy is a moral issue. The freedom that people enjoy in a democracy is a deep moral right, something that they will not experience in a dictatorship where the citizens are worth nothing except as adjunct and slaves of the state and state leaders, the dictators. And most importantly, Jimmy Lai says what matters most is individual responsibility, how individuals should conduct their lives. Yes, individuals have the option whether they can be ambitious and hard-working, or be lazy and dependent on family or state subsidies. So his message to the state, “leave us alone.”

Incidentally, the recently published book by ATR President Grover Norquist, has the same title, “Leave us Alone [Getting the government’s hands off our money, our guns, our lives]”. Grover distributed his fascinating book to all conference participants FREE! And not only that I got my copy signed by Grover himself, I also got extra copies for some friends and officers of our think tank.


Participants do not just listen to the speakers. They also meet old and new friends and exchange ideas on various issues, as well as how to further improve their work in promoting individual liberty, protecting private property rights, and advancing freedom in general. I particularly enjoy this networking aspect of big international conferences and meetings.
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See also:
Liberty and Choice, Atlanta and HK Conferences, June 09, 2008
3rd PRPX, October 2009, Singapore, October 17, 2009 
4th Pacific Rim Policy Exchange, Sydney, Sept 28-30, August 10, 2010 
4th PRPX, Sydney, September 29, 2010  

The 1st PRPX, May 2007 in Hawaii, Photos, May 04, 2015

Sunday, February 15, 2015

IPR and Innovation 21: Recent News + IPN Assistance to Asian Think Tanks

Here are some recent opinions and reports about the value and  necessity of protecting and respecting intellectual property rights (IPR), related to the GIPC's 3rd International IP Index 2015 that was released only last week.
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(1) Elevating the Global Economy through IP
by Amy O'Connor 02/09/15

"Imagine spending years on research, experiencing a breakthrough, developing a new tool, technology, or medicine, but knowing that your innovation may not be protected. Many innovators around the world face this harsh reality. Intellectual property creates value – both socially and economically- by creating jobs, driving economic growth, and enriching our culture. Yet, despite these things, intellectual property protections around the globe remain inconsistent."

(2) From The Independent, 10 February 2015:

"Innovation and creativity allows for economic growth and job opportunities – and these need to be better protected encouraging further development. Easy access should not hinder creation, MEP Therese Comodini Cachia stressed, during a European parliamentary debate about intellectual property."

(3) From TGM, 10 February 2015
Reposted in MLI, same date.

“The benefits of a strong regime of property rights apply just as much to intangibles as to land and goods. We long ago worked out how to make the ownership of cars and houses and factories work, but we are not always as effective at protecting the interests of the originators of an idea, the creators of a work of art or design, or the inventors of a scientific process. Yet the benefits from clear ownership of intellectual property (IP) are every bit as clear as those flowing from the ownership of land and buildings. Those of us who watched the ease with which the private sector beat the government in mapping the human genome is but one recent example of the galvanising effect IP can have on investment in R&D.”


(4) From the Property Rights Alliance (PRA), 

Intellectual Property Rights (IPR) are:
- are Grounded in the Constitution
- are Deserving the Same Respect as Physical Property
- Promote Free Speech and Expression
- Are Vital to Economic Competitiveness
- Are Integral to Consumer Protection and National Security...


Sometime in 2009, I participated in a small group Asian think tanks' IPR and Innovation meeting in Singapore. It was organized by the International  Policy Network (IPN) then, headed by Prof. Julian Morris. I just discovered this photo in my laptop  today. Julian (6th from left) was accompanied by Philip Stevens (whom I last saw in 2012 in Penang, Malaysia, EMHN seminar) and Alec van Gelder (whom I last saw in 2010 in Sydney, ATR-PRA conference). There were at least eight of us participants from eight Asian countries then.


I am thankful to IPN and Julian for introducing me to this technical topic that is often mired with emotion and populism by various campaigners advocating disrespect, if  not killing, IPR.


I have written many articles on "IPR Abolition", "IPR and Innovation", and "IPR and Medicines" in this blog from 2008 to present.
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Wednesday, December 14, 2011

Christmas Notes 4: Thanks to International Policy Network (IPN)

This Christmas 2011, I want to thank a few groups and friends whose help has allowed our think tank, Minimal Government Thinkers, Inc. survived the past few years with their various support and assistance.

First on my list is the International Policy Network (IPN), a private and free market think tank and charity organization based in London, UK. It is headed by Julian Morris, who was also an Economics Professor at the University of Buckingham. Julian has moved to the US as VP of Reason Foundation, another free market think tank based in LA and Washington DC, USA, but Julian retained his position at the IPN.

My partnership with IPN started in June 2005, when they organized the Global Development Summit, a one-day international conference arguing for more free trade, not more foreign aid. It was set more than a week before the G8 Summit in Scotland, UK. I was one of the panel speakers then, along with Barun Mitra and Mohit Satyanand (Liberty Institute, India), Franklin Cudjoe (IMANI, Ghana), James Shikwati (IREN, Kenya), Leon Louw (Free Market Foundation, S. Africa), and several others.

The G8 summit then was met with very strong lobby by various groups and NGOs worldwide, led by British rock stars Bob Geldoff and Bono of U2, to "fight poverty" or "make poverty history" via more foreign aid by governments of rich countries, to the governments of poorer countries in Africa and other developing world.

I cannot find my pictures there, but I composed a song, "I don't like more aid" which we sang -- along with Julian, other speakers on stage during the conference -- to the tune of "I don't like Mondays" made by Bob Geldoff and his rock band then in the 80s or late 70s. See the lyrics here,  Rockin' Geldoff and Foreign Aid (November 20, 2005).

It was also my first time to set foot in London and UK. I liked that city, very clean and so many public parks, but things are so expensive.

Our second engagement with IPN was when we held the "Symposium on Intellectual Property, Innovation and Health" in early September 2007, at Manila Hotel. It was an MG-IPN forum, we made the local preparations and invites, IPN provided the funding. The speakers were Philip Stevens of IPN and Bibek Debroy from India. The moderator was Dr. Epictetus Patalinghug, Professor at the UP College of Business Administration, also MG adviser.

Philip and Bibek (2nd and 3rd from right) talked, among others, about the importance of innovation in medicine development, other measures that the WHO and Health Departments or Ministries of governments can do like improving the health infrastructure, expanding the generic drugs sector, and not become too focused on drug patents and pricing of newly-developed medicines. They also briefly talked about the social health insurance system in UK and India.

In the afternoon of that day, Philip and Bibek also spoke at the UP College of Pharmacy auditorium, the event was jointly organized by the College and the UP Debate Circle, where MG VP Robin Lucas, was a leader. The audience were mostly pharmacy and nursing students and faculty members.

Prior to the IPN-MG symposium, I was not reading and writing about the "Cheaper Medicines Bill" then which was hotly debated in Congress. After that activity, I started writing about the bill and on intellectual property rights (IPR). By 2008, IPN gave MG some modest funding, just sufficient to pay off some debt as MG was operating in previous years with practically no funding.

Philip was also the editor of a well-written book, Fighting the Diseases of Poverty, published in 2007 (330 pages). I was one of the minor co-authors in two of its nine chapters.
















Since then, IPN would be publishing more papers and studies on health, free trade, climate and energy, and MG Thinkers would be among the international co-sponsor think tanks and organizations of those publications.

Keeping it Real, May 2009








IPN also organized a few small meetings for some Asian free market think tanks, the latest was the "Think Tanks IPR Meeting" held in Singapore in late January 2011.

I was one of 4 speakers in that meeting. The three other speakers were Amir Ullah Khan of Bangalore Management Academy in India, Philip Stevens and Julian Morris.

Finally, IPN also organized a few international projects like the Civil Society Coalition on Climate Change (CSCCC), a network of free market-oriented think tanks and NGOs from many countries who do not believe in climate alarmism and global ecological central planning project by the UN, Al Gore, foreign aid agencies and many country governments.

The Freedom to Trade  (F2T) international coalition was also initiated by IPN and the Atlas Economic Research Foundation.

In all these international coalitions and networking activities initiated by IPN, MG Thinkers was a member or partner, the only Philippine-based think tank which has been so honored to be invited to such prestigious network.

This year though, IPN suffered some financial constraints, but it's still there. Some of its hard-working staff like Philip and Alec van Gelder have moved on to find other jobs.

I am truly and sincerely thankful to IPN and Julian Morris for their various support extended to MG Thinkers over the past few years. I would even say that without IPN, MG Thinkers would have been back to an obscure organization operating on debt.

There are other organizations that support MG Thinkers in kind. I will write about them in the next few days.
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See also:
WHO is trampling freedom of expression?, November 07, 2007
Liberty, democracy, price control and tax competition, October 17, 2009
Green jobs are myth, September 04, 2010
Drug price control 3: Cost containment and long-term costs, January 27, 2011
IPR and medicines, Part 1, March 04, 2011

Thursday, July 07, 2011

IPN, Prizes for free market journalism

Journalists and opinion writers in major newspapers and magazines who write on the virtue of individual freedom and free market, here is an opportunity to win thousands of dollars.

The International Policy Network is announcing the Bastiat Prize for Journalism. Really huge prizes for the winners -- $50,000 1st prize, $15,000 2nd prize, and $5,000 3rd prize.

The award is in honor of Friedrich Bastiat, a 19th century French journalist who authored several books like The Law, criticizing government coercion that stifle individual liberty and the free market.

The only problem with this kind of award is that it attracts REALLY big names in global journalism who advocate the free society and less government coercion. So the competition should be very stiff. The panel of judges are also top caliber journalists, including former winners of the award.

Deadline for submission of entries is July 31, 2011. Check the IPN website to see more details.

Saturday, December 26, 2009

Warming Hysteria: Climate Extortion and Mayon Volcano

It is too common. When one cannot argue with data and facts, they attack the people or institutions that bring the idea. That is, they shoot the messenger, not the message.

This practice is very visible in the anthropogenic [man-made] global warming (AGW) claims. Many campaigners of such claim are too impatient to hear any opposing idea, so they douse any dissenting voice as "that's big oil lobby" and similar statements.

One article from mother jones has pathetically attacked the Atlas Economic Research Foundation, the International Policy Network (IPN), the Civil Society Coalition on Climate Change (CSCCC), and other think tanks and coalitions/network that do not agree with the AGW claim, see here.
http://motherjones.com/environment/2009/12/climate-deniers-atlas-foundation

The author is Mr. Josh Harkinson. The science and data behind AGW claim is highly suspect. I wrote a few papers on this, the latest of which is "Warming lies", http://www.minimalgovernment.net/media/mg_20091201.pdf.

Atlas is helping small think tanks around the world that advance individual liberty, not because they are questioning AGW. Most or all of those think tanks are fighting dictatorships, corruption, trade protectionism, high taxation, private property rights confiscation, among others. Questioning AGW is a small part of their work.

The CSCCC is a big international coalition of independent think tanks and institutes in more than 40 countries that don't believe in ecological central planning. Since there is no consensus yet about the science behind AGW, there should be no global coercion on environment and energy policies.

Talking about money, I think that while it is true that some oil money like Exxonmobil's was mobilized to help some "skeptics" groups, another big oil, Shell, is on the side of the warmers and most likely be giving them money too.

One estimate of lobby is goes like this:
against AGW, about $2m/year.
pro-AGW: $4 billion/year from the US federal government alone.
This is for climate researches that support the man-made warming conclusion. See for instance, http://scienceandpublicpolicy.org/images/stories/papers/originals/climate_money.pdf
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My related short papers recently:

(1)  Winterstorm and Climate Extortion

December 20, 2009

I saw in my facebook account, pictures just a few hours ago, of my Filipino and American friends in deep snow in front of their houses in DC-VA and NYC. In this picture, my good friend Jo Kwong of the Atlas Economic Research Foundation in DC.

That's one day after the conclusion of the Copenhagen meeting to "fight unequivocal global warming."

US President Obama was forced to cut his trip in snowy Copenhagen to head back to DC because of the winter storm. But before flying, he and State Sec. Hillary Clinton promised "$100 billion a year starting 2020", all to fight global warming. The agreement in Copenhagen was to "limit global warming to only 2 C". The IPCC AR4 warned of "best case" 4 C rise in global temperature, with worst case of 6.4 C rise by 2100.

I would say that the Copenhagen meeting was an event of irony and hypocrisy. Let me enumerate a few points why I say this.

1. The $100 B/year promise by Mr. Obama will be made long after his term in the White House has ended, by 2020. It's the typical "promise everything" or "scare everyone with scenarios" long after you yourself is gone from your office or from the face of the Earth. The IPCC scientists for instance who predicted in 2007 of "up to 6.4 C rise by 2100" will all be dead by then.

2. Extortion by poor country governments. There was high political heat and bickering among poor country govts. vs rich country govts. vs. big environmental NGOs, in pressuring how much carbon emission cuts by whom and by when. In the end, they talk about money, money, money. European government initially said $10 billion/year, poor country governments said "No, We want $300 to $400 billion/year!"
Haggling and bickering, they end up with $100 B/year promise by Obama, plus contributions by EU and other rich governments. So in a sense, it was a meeting for extortion by poor country govts. But the leaders of those poor countries are ALL rich.

3. Venezuelan socialist President Hugo Chavez spoke in Copenhagen, lambasted the evils of capitalism and how capitalist corporations destroyed the planet. And many government representatives and NGOs applauded and gave him a standing ovation! Last time I checked, it was capitalism which gave them all commercial airlines, private jets, expensive limos and sedans, that brought them to capitalist Copenhagen. And they stayed in capitalist hotels, ate in capitalist restaurants in the city. Capitalist power plants gave them uninterrupted power and electricity for their meeting, and capitalist media outlets broadcasted their meetings and riots all around the world. And those politicians and bureaucrats say "capitalism is evil."

4. Blizzard in Copenhagen and upcoming winter storm in DC and surrounding states while they are meeting to "fight global warming". This time, it's the Earth telling them, "Get real guys. I got no fever. I'm chilling, and so are you."

Readers, feel free to add your list of irony and hypocrisy in all those lies and alarmism.


(2) Mayon Volcano and Climate
December 19, 2009

Mayon volcano, the most active of the Philippines' 21 active volcanoes (and several dozens inactive ones), has been very active recently. In the last century, it was exploding every 10 years on average, I think. This decade and century, this will be it's 3rd explosion. First was February 2000, 2nd on August 2006, and now December 2009. That volcano is contributing lots of CO2 and other gases into the atmosphere.

Contribute to global warming? No. Exploding volcanoes release lots of gases, CO2 among them; also dust and smoke, into the lower and upper atmosphere. Such gases and particles tend to block sunlight from reaching the Earth's land and ocean surfaces, resulting in cooling.

When Mt. Pinatubo erupted in 1991, that event alone caused global cooling by at least 0.4 C for nearly 3 years. Thick volume of ashes, smoke and gases that navigated around the globe several times, blocking sunlight. When it erupted, certains hours of the day in Metro Manila, Pampanga and nearby provinces became dark.

One friend, Winthrop Yu, wondered how much cooling a Mayon eruption would contribute. Should be small, maybe by only 0.0__ C, but cooling, nonetheless.

And we go back to the IPCC 4th Assessment Report (AR4). On its "analysis" table, 8 out of 9 factors are anthropogenic (man-made), only 1 was natural, solar irradiance.

Whaaattt??? Galactic cosmic rays (GCRs) don't contribute to the earth's climate? Volcanoes, water vapor, clouds, biosols, pacific decadal oscillation (PDO), other natural factors, do NOT contribute to the EArth's climate?

PDO cycles of cooling and warming average about 25 years. The warming phase is over, we're now entering the cooling phase.

Last September, NASA reported that there were 19 percent more GCRs in the Earth's atmosphere than last year. GCRs come from exploding stars from across the universe, within and outside our galaxy. They help create aerosols that become the "seeds" for more clouds.

The IPCC relied 100 percent of their climate predictions for the next 100 years on their global computer models (GCMs).

Seriously, anyone believes those computer models' predictive capacity of what will happen in the Philippines' weather, US weather, Europe weather, the world's weather, 1 or 2 weeks from now? For instance, the temperature range of hi-low, by Dec. 31, 2009? Because the IPCC's GCMs say they CAN predict the Earth's temperature range 90 or 100 years from now! And they have the figures, "best case" prediction of 4 C rise, max range of up to 6.4 C, by 2100!

Tuesday, April 28, 2009

Free Trade 12: Trade and World Peace

Last April 02, 2009, I wrote this:


Today, leaders of the world’s largest economies, both rich and developing, will meet in London to "save" the world economy in general, and their respective economies in particular.

The G20 summit is a high profile meeting; there are lots of demands and expectations, lots of lobby interests to be resolved and pleased. Among such groups are the protectionists and anti-free trade interests.

This group reasons out that since the economy is bad and lots of jobs have been lost and are threatened to be lost further, consumers should patronize locally-made products and services. The group further posits that governments should reduce, if not prevent, huge importation of competing goods and services made from other countries. This way, local jobs will be preserved and/or created, and the economy will recover.

There is one huge fault in this kind of reasoning: It does not recognize that people trade with each other voluntarily because they realize there are "net gains" for them. By choosing the best quality product (raw material or final consumer item) at the lowest price possible, a consumer benefits. By having huge number of potential buyers, a producer continuously improves on his product or service to please consumers who want the “best product at the lowest price possible”.


The International Policy Network and the Atlas Global Initiative teamed up to launch the Freedom to Trade Coalition (F2T) and the Free Trade Petition to pressure G20 leaders not to give in to strong protectionist moves in their respective countries and regions.

When the Petition was launched in London yesterday, it has attracted more than 2,000 signatories from many countries around the world. The Petition categorically declares the following, among others:

“Trade’s most valuable product is peace. Trade promotes peace, in part, by uniting different peoples in a common culture of commerce – a daily process of learning others’ languages, social norms, laws, expectations, wants, and talents.

Trade promotes peace by encouraging people to build bonds of mutually beneficial cooperation. Trade unites the economic interests of the peoples of all nations who trade with each other.

A great deal of rigorous empirical research supports perhaps the most tragic example of what happens when the proposition that "trade promotes peace" insight is ignored is World War II.

International trade collapsed by 70% between 1929 and 1932, in no small part because of America’s 1930 Smoot-Hawley tariff and the retaliatory tariffs of other nations. Economist Martin Wolf notes that "this collapse in trade was a huge spur to the search for autarky and Lebensraum, most of all for Germany and Japan."

The most ghastly and deadly wars in human history soon followed.”

A number of leaders of member-institutes of the F2T Coalition – including this writer – believe that for free trade to succeed, it should be done unilaterally. Problems arise when people accept the idea that countries should first restrict trade, and then negotiate for some alleged reciprocal benefits, because this legitimizes the role of the State in trade. Countries and governments do not trade with each other; people do. So governments have no legitimate role in restricting or negotiating trade.

Unilateral free trade means that business and political leaders of an economy simply declare, "We want more choices of goods and services from anywhere. Come bring them here, zero (or near-zero) tariff, zero or near-zero non-tariff barriers, and very little bureaucracy (trade facilitation)." Hong Kong does that. North Korea and Myanmar do not do that.

Meanwhile, the US President, the British Prime Minister, and other G20 leaders are busy convincing each other and the public that the world needs now more deficit spending, more borrowings, and more government debts, to "save" the world economy. Huge debts of the past were not enough; they need even bigger debts and bail-outs.

But some European leaders prefer equally threatening moves like the creation of a new global financial regulation framework or mechanism. One such mechanism is large-scale harassment of so-called "tax havens". The US, EU, Japan, and other rich countries that are on the "more-debts-more-bail-outs" train know perfectly that they are heading to the "more-and-higher-taxes" direction, to pay past and present debts. Hence, economies that offer some "tax relief" to global corporations should be pounced. Everyone should pay the high cost of "saving" the global economy, now and in the future.

At the end of the day, people around the world only need free trade, bigger choices of which products and services they will buy or not buy, of which type of employment arrangement they can accept or reject, and of which technology they will need or ignore. People do not need more deficit spending and more debts by governments. They do not need more financial and economic regulations. They do not need more aid or government-to-government transfer of taxpayers’ money.

People need greater control of their own lives. They need global peace to allow them to pursue their professions, to pursue their business and consumer interests, with the least taxation, regulation and intervention by governments and bureaucrats possible.
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Today, writing this in Los Angeles, California, USA. 

Free Trade and Liberty Forum

Trade is the process or mechanism by which people can sell their extra output of goods and services, use the money from such sale to buy the extra goods and services by other people that they need for their household and work needs. Thus, a rice or chicken farmer can sell their extra rice or chicken to other people, they use the money proceeds of such sale in order to buy fuel or spare parts for their hand tractors or fertilizers or animal feeds, to buy new dress, shoes and school supplies for his children, to build a new or repair and old house, to buy beer and pork barbecue, and so on. This important and common sense function of trade and voluntary exchange, is the main reason why trade should be left unrestricted, why trade should be as free as possible. 

Unfortunately this thinking is not shared by certain sectors of our societies. There are many alibis against free trade, foremost of which is that it steals local jobs. By buying goods made abroad and imported into the country, local manufacturers are deprived of additional revenues, some of them will close shop, resulting to job lay-offs and hence, higher unemployment, higher poverty.

Fighting trade protectionism is among the panel discussions tackled in the recently concluded “Atlas Liberty Forum” held at Hyatt Regency Century Plaza, Los Angeles, California, April 24 to 25, 2009. It was sponsored by the Atlas Economic Research Foundation. Atlas gave me a travel scholarship and hotel accommodation, that is why I was able to attend this event, and I was the only Filipino among nearly 300 participants from more than 30 countries around the world. 

The speakers from this panel were Alec van Gelder from International Policy Network (IPN) in London, Dan Grisworld from Cato Institute in Washington DC, and Seyitbek Uzmanov from Central Asia Free Market Institute (CAFMI) in Kyrgyztan. The panel moderator was Tom Palmer, the new Atlas VP for the Atlas Global Initiative.

Mr. van Gelder talked about the global campaign for free trade initiated by Atlas and IPN, the Freedom to Trade coalition that has attracted the participation of about 70 independent institutes and think tanks from nearly 50 countries, among others. Mr. Grisworld talked about the various tariff and non-tariff barriers that the American protectionists have put up against certain imported commodities, to the disadvantage of American consumers who have to pay higher for otherwise cheaper goods made abroad. And Mr. Uzmanov talked about the free trade coalition they are building in Kyrgyztan with a single mission: to make their country the “Dubai of central Asia” within the next 2 to 3 years. 

This goal by CAFMI is indeed laudable and ambitious, despite the fact that it is a very young think tank and its two top leaders are young too, only in their mid-20s. I asked them why they chose Dubai as their model for free trade when Hong Kong is more famous in having a unilateral free trade policy, they replied that many people in their country do not know Hong Kong much while Dubai is more known to them. Hence, the “Dubai inspiration” for a unilateral free trade project.

There were many other interesting panels in the Atlas Liberty Forum, like “The financial crisis and the attack on sound money” and “Fund raising” for free market think tanks. 

Trade protectionism is one aspect of dictatorship. The protectionists and their implementers in government dictate to the consumers what goods and services they can or cannot buy from abroad, if allowed to import, by how much quantity, from where and at what price. People just do not realize the dictatorship aspect of trade protectionism.

There is a new shade of protectionism that is recently shaping up: green or eco-protectionism. This type of protectionists argue that while rich countries keep their environment clean and refrain from using dirty and highly polluting technologies, the producers from poorer countries do not. Thus, the goods are produced cheaply there because they are using old and dirty technologies, they do not strictly control air quality in manufacturing plants, and such production processes emit plenty of carbon dioxide into the atmosphere, which contributes to greenhouse gases (GHGs), which contributes to global warming and climate change. 

The solution therefore, is to impose a “carbon tax” on imported manufactured goods from poorer countries that do not strictly limit their carbon emission. This tax is meant to “compensate” for the use of dirty manufacturing technologies that “contribute to global warming”, resulting in lower amount of importation (since the imported goods have become more expensive), lower amount of carbon emission in the world.

This reasoning is faulty on two counts. One, it is wrong to restrict international trade because it reduces or kills the right of choice of the local consumers. And two, it is wrong to blame carbon dioxide as the “cause” of global warming. See my article last week on this, “Cooling reality vs Warming politics.”

It is important that Atlas continues holding its annual Liberty Forum because the forum helps not only to discuss and clarify certain issues that affect the world, issues that affect the individual liberty of people around the world. The forum also allows liberty fighters to network with each other, to learn from each other.
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See also:
Free Trade 6: Counterfeit Drugs Worldwide, December 21, 2007
Free Trade 7: Class War, Eco-protectionism and Climate, April 02, 2008
Free Trade 8: Global RIce Price, May 13, 2008
Free trade 9: Parallel Importation of Medicines, May 22, 2008

Free Trade 10: More on Unilateral Trade Liberalization, July 15, 2008
Free Trade 11: Global Petition, Keynes, March 19, 2009

Thursday, March 19, 2009

Free Trade 11: Global Petition, Keynes

Yesterday, I wrote this:

There is an on-going global campaign against the wave of protectionism. An international coalition composed of individuals and institutes or think tanks, explicitly free marketer or not, will be formed. This campaign and coalition has been initiated by the International Policy Network (IPN) and the Atlas Economic Research Foundation, two of the closest friends of MG Thinkers.

May I encourage readers to sign this petition, below.

http://atlasnetwork.org/tradepetition/
http://freedomtotrade.list-manage.com/subscribe?u=4a59832f04a5d6164a0b81a24&id=6cdd6e9f9d

This petition will be presented in London during the G20 summit (2-3 April).

Free trade is freedom to trade and exchange.
Zero coercion or restriction.
Period.

regards,

Nonoy Oplas
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Petition:

Free Trade Is the Best Policy

The specter of protectionism is rising. It is always a dangerous and foolish policy, but it is especially dangerous at a time of economic crisis, when it threatens to damage the world economy. Protectionism’s peculiar premise is that national prosperity is increased when government grants monopoly power to domestic producers. As centuries of economic reasoning, historical experience, and empirical studies have repeatedly shown, that premise is dead wrong. Protectionism creates poverty, not prosperity. Protectionism doesn’t even “protect” domestic jobs or industries; it destroys them, by harming export industries and industries that rely on imports to make their goods. Raising the local prices of steel by “protecting” local steel companies just raises the cost of producing cars and the many other goods made with steel. Protectionism is a fool’s game.

But the fact that protectionism destroys wealth is not its worst consequence. Protectionism destroys peace. That is justification enough for all people of good will, all friends of civilization, to speak out loudly and forcefully against economic nationalism, an ideology of conflict, based on ignorance and carried into practice by protectionism.

Two hundred and fifty years ago, Montesquieu observed that “Peace is the natural effect of trade. Two nations who differ with each other become reciprocally dependent; for if one has an interest in buying, the other has an interest in selling; and thus their union is founded on their mutual necessities.”

Trade’s most valuable product is peace. Trade promotes peace, in part, by uniting different peoples in a common culture of commerce – a daily process of learning others’ languages, social norms, laws, expectations, wants, and talents.

Trade promotes peace by encouraging people to build bonds of mutually beneficial cooperation. Just as trade unites the economic interests of Paris and Lyon, of Boston and Seattle, of Calcutta and Mumbai, trade also unites the economic interests of Paris and Portland, of Boston and Berlin, of Calcutta and Copenhagen – of the peoples of all nations who trade with other.

A great deal of rigorous empirical research supports the proposition that trade promotes peace.

Perhaps the most tragic example of what happens when that insight is ignored is World War II.

International trade collapsed by 70 percent between 1929 and 1932, in no small part because of America’s 1930 Smoot-Hawley tariff and the retaliatory tariffs of other nations. Economist Martin Wolf notes that “this collapse in trade was a huge spur to the search for autarky and Lebensraum, most of all for Germany and Japan.”

The most ghastly and deadly wars in human history soon followed.

By reducing war, trade saves lives.

Trade saves lives also by increasing prosperity and extending it to more and more people. The evidence that freer trade promotes prosperity is simply overwhelming. Prosperity enables ordinary men and women to lead longer and healthier lives.

And with longer, healthier lives lived more peacefully, people integrated into the global economy have more time to enjoy the vast array of cultural experiences brought to them by free trade. Culture is enriched by contributions from around the world, made possible by free trade in goods and in ideas.

Without a doubt, free trade increases material prosperity. But its greatest gift is not easily measured with money. That greatest gift is lives that are freer, fuller, and far less likely to be scalded or destroyed by the atrocities of war.

Accordingly, we the undersigned join together in a plea to the governments of all nations to resist the calls of the short-sighted and the greedy to raise higher the barriers to trade. In addition, we call on them to tear down current protectionist barriers to free trade. To each government, we say: let your citizens enjoy not only the fruits of your own fields, factories, and genius, but also those of the entire globe. The rewards will be greater prosperity, richer lives, and enjoyment of the blessings of peace.


Sign the Petition
http://freedomtotrade.list-manage.com/subscribe?u=4a59832f04a5d6164a0b81a24&id=6cdd6e9f9d
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Today, I received a comment from a Filipino friend based in Europe. He wrote,

I just read an interesting passage from John Maynard Keynes on his 'National Self-sufficiency' , which could be interpreted as his proposition that 'de-globalisation' (or a certain degree of protectionism) or national self-suficiency or nationalisation of finance - and not free trade actually promotes peace and development. Keynes wrote:



I sympathize, therefore, with those who would minimize, rather than with those who would maximize, economic entanglement among nations. Ideas, knowledge, science, hospitality, travel – these are the things which should of their nature be international. But let goods be homespun whenever it is reasonably and conveniently possible, and, above all, let finance be primarily national. Yet, at the same time, those who seek to disembarrass a country of its entanglements should be very slow and wary. It should not be a matter of tearing up roots but of slowly training a plant to grow in a different direction.

'For these strong reasons, therefore, I am inclined to the belief that, after the transition is accomplished, a greater measure of national self-sufficiency and economic isolation among countries than existed in 1914 may tend to serve the cause of peace, rather than otherwise. At any rate, the age of economic internationalism was not particularly successful in avoiding war; and if its friends retort, that the imperfection of its success never gave it a fair chance, it is reasonable to point out that a greater success is scarcely probable in the coming years.' (Keynes 1933/1972).


My friend added, "I think your ranks or 'the big names' themselves should come back debating the ideas of Keynes, especially that this crisis moment when 'we all seem to be Keynesian now' as the Financial Times put it a few months ago."

It's good that Keynes recognized the internationality or globalized character, of knowledge, science, travel, etc. I think if he were alive today, he will also recognize the globalized character (hence, must not be "caged" in any national boundary) of sports, culture, music, adventure, online networking (facebook, friendster,...).

So why would he propose to "cage" goods to national territories and not be internationally exchanged and traded freely? Is it wrong for my HP laptop, your (probably Nokia) cellular phone, someone's Ford expedition or Toyota Avanza, other people's gadgets, appliances, cars, shoes, salmon, Australian beef, etc. to be traded internationally? I cannot see any point why it is wrong.

Protectionism for me, is dictatorship.
The protectionists are dictating us to whom we can sell, to whom we can buy, at how much quantity, at what price and tax rates, when we can buy or sell, etc.

Under free trade, there is zero restriction, zero coercion.

A Finnish cell phone manufacturer can offer us their best models, but we can say "No, we're not buying from you, we prefer Korean or Japanese cellphones, or we want Taiwanese or Chinese copycats..."

A carinderia (streetside foodshops) owner can say "it's good to patronize onions and vegetables from the Cordilleras (mountain provinces in northern Philippines), but my customers are ordinary folks and jobless people who want the cheapest food possible, and imported onions and vegetables from Taiwan or Vietnam are a lot cheaper than those coming from the Cordilleras..."

A free trader ideologue (like me) can theorize from that carinderia owner's statement that "free trade of onions and veggies will help enable the poorest of the urban poor in the Philippines to deal with the current global economic turmoil and high unemployment. "

Talking about "free trade = peace", maybe the best examples will be Hong Kong and North Korea. HK being the epitome of free trade in Asia, has zero external threat of war (even if one will remove the "China's army" factor). The biggest banks, the biggest clothing and apparel manufacturers and distributors, the biggest hotel chains, the biggest food chains, etc. of the US, Europe, Japan, Canada, Korea, etc. have offices in HK. Any country that dare invade and attack HK will face the most modern fighter planes and armies of those countries mentioned.

In contrast, North Korea, autarkic except limited trade with neighboring China and S. Korea, is suspected by many countries around the world, in Asia especially, of possibly starting a war, or inviting a war, partly because of the absence of free flow of goods and services across its borders, absence of the internationality of the wwweb and the information it brings, etc.

"We're all Keyneysians now" were uttered by people who love more government, more borrowings and taxes, more intervention and regulations, more politicians and bureaucrats. I dont think the owners of yahoo, google, facebook, linux, etc. would ever desire and hope for such kind of a business environment. And yet these are among the companies that make lots of money with almost zero government subsidy and "support".
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See also:
Free Trade 1: Estonia's Free Market, Globalization, May 09, 2006
Free Trade 2: Unilateral Trade Liberalization, May 17, 2006
Free Trade 3: Protectionism Perpetuate Poverty, September 05, 2006
Free Trade 4: FTA in APEC, July 09, 2007
Free Trade 5: Business , Rock Music and Cycling Globalization, July 17, 2007
Free Trade 10: More on Unilateral Trade Liberalization, July 15, 2008

Monday, June 09, 2008

Pol. Ideology 9: Liberty and Choice, Atlanta and HK Conferences

I attended two international conferences recently. First, the Atlas Liberty Forum in Atlanta, Georgia, USA last  April, and the Pacific Rim Policy Exchange in Hong Kong this week. One article per conference below.

(1) Liberty and Choice vs. Dictation and Extortion

April 30, 2008


The Atlas Economic Research Foundation (www.atlasusa.org), a think tank based in Arlington, Virginia, USA, held its 8th Liberty Forum in Atlanta, Georgia, USA last April 25-26, 2008. Atlas gave me a modest travel grant, so I was able to go there as one of the 300+ participants from many countries.

The Liberty Forum is an annual event organized by Atlas and held in several cities in the US. Its main purpose is to gather many leaders of free market-oriented think tanks and public policy institutes, as well as some scholars and corporate leaders who believe in individual liberty and free market, enable them to meet and network with each other. There are also lectures and fora on selected topics, like this year, one session was “Promoting freedom in difficult countries” and the speakers were from Iran, Ghana, Mongolia and Venezuela.

When we formed our own think tank here in Manila, the Minimal Government Thinkers, Inc., our goal is very clear and well-defined: to advance a society of free, responsible and self-reliant individuals who demand less government, less taxes and less regulations. In short, a society that gives utmost importance to individual liberty and choice, and fights dictation in many facets of our lives, dictation and regulations that often invite extortionary behavior from those who think individuals should be guided upon, even dictated upon, on how they should conduct their lives. Like how much they can keep from their monthly income, who should be over-taxed, who should be over-subsidized, and who should administer those taxation, regulation and subsidization.

That is how I and our think tank got known to fellow free market-oriented institutes in Asia and other continents of the world, like Atlas in the US and the International Policy Network in UK.

Here in the Philippines, the attempts by the state, from local to national government units, as well as from some multilateral institutions, to forcibly collectivize many aspects of our lives, is numerous. Many of which were successful and are simply being implemented, like those high and multiple taxes and fees, trade protectionism, regulations in starting and expanding a business, and so on.

A number of those forced collectivization attempts are still being planned and need institutionalization through legislation. Among these are various price control schemes for rice, petroleum, housing, wages and medicines.

This coming May 1, the President and the top legislative leaders want two new big laws: exempting the minimum wage earners from paying personal income tax, and enactment of the “cheaper medicines” bill. The former is very rationale, it even looks cute, except that the state will also adjust upwards the taxes for those earning above minimum wage.to “compensate for revenue losses”. The second is always a populist propaganda, and two schemes the Health Department and the House of Representatives have thought of, are “generics only, no branded drugs” in physicians’ prescription, and medicine price control.

If the latter bill becomes a law, it will have 2 perverse results. One is killing choice – physicians will have no more option to choose and prescribe a certain medicine brand that they think can cure their patients given their particular illness. And two, create an extortionary environment. If the President and/or the Secretary of the Health Department are corrupt, all they have to do is go to the biggest pharmaceutical companies (generics or branded) and tell them, “hey, we will put your best-selling drugs under price control, unless you pay us.”

The price system is always the best indicator of the usefulness and availability of a certain product or service. Cheap ones are always attractive, but there are dangers that those cheap goods are of bad quality and in the case of medicines, could be unsafe and fatal. Expensive products are unattractive, but they often bring with them reliable names or brands for their manufacturers and producers, which translate to effective and safe products.

There are many factors why a product becomes expensive. Among the prominent ones are one, government taxes and fees – they are always inflationary, they always make the taxed products become more expensive. Two, the high cost of product research and development (R&D) and innovation. Copycats are always cheap because their manufacturers did not spend a single amount in product development and innovation. Three, monopolistic or oligopolistic structure of the market; ie, the fewer the sellers, the greater the tendency of the few or lone seller to abuse the market and bleed the consumers.

Note that in 2 or all of the 3 major factors mentioned above, government is involved. R&D and the cost of innovation is always very costly because of strict government health, sanitary and environmental regulations.

And so, if government intervention is costly and make things expensive, why would we seek another set of government intervention – through wage control and higher taxation of skilled laborers, those earning above the minimum wage, and medicine price control, as well as killing choice for physicians and patients?

Not only are we hoodwinked of the excesses and distortions by past government intervention and dictation. We are also hoodwinked to believe that we need more of the same abuses and dictations.

If we value our individual liberty, not their liberty to dictate to us what is supposedly good for us, then let us say NO to their attempts and dangerous legislations.



(2) Individual Liberty in the Pacific Rim

Individual liberty is a subject that is often subsumed, if ever considered at all, under general concepts like collective liberty and national sovereignty. This is wrong because if liberty and freedom are to have serious meanings, they must redound to individual liberty. The collective is composed of individuals. If individuals are considered as plain adjuncts and appendages of the collective, then only the leaders of the collective have liberty and power to selectively choose what rights and liberty the individuals can have, and what rights and liberty they cannot have.

This subject is the theme of the recent “Pacific Rim Policy Exchange” held in Hong Kong on 04-05 June 2008. It was sponsored by four free market-oriented think tanks: the U.S.-based Property Rights Alliance, the Americans for Tax Reforms, U.K.-based International Policy Network, and Hongkong-based Lion Rock Institute.

The HK meeting was the second event after the first “Pacific Rim Conference” held in Honolulu, Hawaii in May 2007. It was jointly sponsored by the same institutes, plus the US State Policy Network and the Asia Forum-Japan. I have attended both conferences, courtesy of IPN sponsorship.

The HK event was composed of six panels or subjects, three per day. These were (1) Real property rights: traditional rights, formal protection and economic growth; (2) Taming the beast: accountability, deregulation and transparency; (3) Free market health care reform: keeping healthy with a healthy market; (4) Intellectual property rights: protecting the engine of innovation; (5) Adaptation or accommodation: energy production and its consequences; and (6) Globalization: trade, regulation and international markets. And the speakers came from China, India, S. Korea, Sri Lanka, Taiwan, Hong Kong, Australia, Canada, US, UK and Peru. Other participants came from other Asian countries.

Among the panels that attracted me most were those on real property rights, intellectual property rights, and taming the beast (the State). It’s very enlightening, or perhaps depressing, to know that many governments around the world are responsible for very complicated, time-consuming and costly procedures in registering property so that many real owners of land, for instance, do not have peace of mind in saying that they indeed have full control of their lands, whether to keep it for whatever use, or sell and exchange it for money or other real properties.

Protecting intellectual property – someone’s song composition, research data and methodology, technological invention, medical innovation, and so on – is also very important. If another singer can just steal a lesser-known musician’s songs and record them and claim them as his own composition, the latter would feel robbed. If other companies, including state enterprises, can just steal the formula of an effective and best-selling pharmaceutical product because they were allowed to do so by the State in the name of “national emergencies”, the company that invented that medical product (and spent many years and several hundred million dollars in R&D) would also feel robbed. And there are many governments, upon the prodding of some activist groups, itching to do this kind of intervention and legalized stealing.

To me, such unnecessary bureaucracies in registering real or physical properties, and disrespect of the IPR of an innovator company, are examples of “government failure”. I firmly believe that protection of the citizens’ right to life, right to dignity, and right to private property, are the State’s main function. Running and operating banks, power plants, pension funds, hospitals, universities, or engaging in rice trading and broadband deals, are secondary or unnecessary State functions because these are better left to the private sector in a deregulated and competitive business environment. There is pressure on private enterprises to perform well and satisfy customers in a competitive and level playing field, while there is complacency, resulting in mediocrity, when a service is under the hands of government. This is because private enterprises depend on revenues from customers who voluntarily come to get their services, while government enterprises depend on subsidies from taxes and fees that are forcibly collected from the people.

And how could one tame the beast? A speaker from Hongkong suggested to “declaw it, one claw at a time, and blind it, if you can”. I agree with this proposal, although achieving it is very difficult because the number of claws, those various regulations, seem to be increasing, not decreasing. And very often, those regulations are not transparent; one would not know them all, including the fees, hidden requirements, and the number of days, weeks, or months to wait, until he/she gets there, in front of the concerned regulatory office. Forcing the government, both national and local, to become more transparent should be a good challenge for citizens since the total cost of (a) taxes and fees + (b) cost of compliance can be high which siphons the people’s energy and resources away from actual productive undertaking.

Aside from the six panels, the conference also featured two luncheon speakers and two dinner speakers during those two days, and all of them were articulate speakers. But the most influential of them all was Jimmy Lai, founder of Next Media communications in HK. He was also the main character in a documentary called “The Call of the Entrepreneur” produced by the Acton Institute. The man had a typical rags-to-riches story due to non-typical character of super-hard work and strict business ethics. He was emotional in the documentary when he related how difficult his and his family’s life was, both in mainland China until he was a teen-age migrant worker in HK, and how his philosophy in life changed after he read Friedrich Hayek’s “The Road to Serfdom”.

Is democracy a political condition? Many people would nod in answering this question. But Jimmy Lai says NO, because for him, democracy is a moral issue. The freedom that people enjoy in a democracy is a deep moral right, something that they will not experience in a dictatorship where the citizens are worth nothing except as adjunct and slaves of the State and State leaders, the dictators. Most importantly, Jimmy Lai says that what matters most is individual responsibility, how individuals should conduct their lives. Yes, individuals have the option whether they can be ambitious and hard-working, or be lazy and dependent on family or State subsidies. So his message to the State, “Leave us alone.” Incidentally, the recently published book by the President of the Americans for Tax Reform foundation, Mr. Grover Norquist, has the same title, “Leave us Alone”.
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See also:

Pol. Ideology 5: Have Movements for Liberty Progressed? June 26, 2006
Pol. Ideology 6: Quotes from Adam Smith, February 04, 2007
Pol. Ideology 7: Individualism, Entitlement and Freedom, April 30, 2007
Pol. Ideology 8: Ideas on Liberty, September 15, 2007