Showing posts with label John Locke. Show all posts
Showing posts with label John Locke. Show all posts

Sunday, July 08, 2018

Hayek, Mises and Classical Liberalism

Last month I gave a lecture at SFL-PH, small but engaged audienced.


Six sections: (1) Hayek, (2) Mises, (3) Classical liberals, (4) Pre-classical, (5) Modern liberals, and (6) Bonus. Hayek was a very prolific writer, produced many books and manuscripts from 1931 to 1980s. 


Likewise among his mentors, Mises was also a prolific writer.


Among the classical liberals, Adam Smith was a stand out. His prior work "Theory of Moral Sentiments" provided the philosophical and economic background to his more famous work, "The Wealth of Nations."


Other classical liberals were David Ricardo (labor theory of value, theory of comparative advantage, etc), John Locke (social contract theory, Treatise on Government, etc.), JS Mill, etc.

But more than 1,000 years before Adam Smith, perhaps the world's first liberal was an Asian, the philosopher from China.


The recent liberals, there are many of them now.


The full 36-slides presentation is posted in my slideshare account. Thank you.

Sunday, April 08, 2018

BWorld 202, Tourism, casinos, and Boracay

* This is my article in BusinessWorld last April 5, 2018.


“Every man has a property in his own person. This nobody has a right to, but himself.”

— John Locke (1632-1704, considered the father of classical liberalism)

The forced closure for several months by the Duterte government of all resorts, hotels, restaurants and shops in Boracay, both errant and compliant enterprises, raises the question of private property protection and compensation for the affected private owners.

NEDA has announced that the closure of the entire island from tourism is “very insignificant, only 0.1% of GDP.”

On Twitter, I asked NEDA, DoT, DENR, and MalacaƱang if they will compensate the losses of the environment-compliant enterprises, especially since the amount is “very insignificant” anyway. Or would the Duterte government not care because this is just tourism in Boracay and not in Davao? As expected, the response I got from the government was the sound of silence.

In 2017, at least 3.7 million people visited the island, less than a million of which came from abroad.

There was also a surge in tourist arrivals in the first quarter of 2018 partly due to cruise ships that visited Boracay. For this year, 27 cruise ships were set to visit the island and some have already canceled.

Tourism is an important revenue earner for an economy or a country. The Philippines being an archipelago with lots of beautiful islands and white sand beaches is unable to optimize this potential yet. For instance, tourism receipts in 2016 was only one-third (⅓) that of Malaysia and Singapore and one-eighth (⅛) that of Thailand.

In terms of visitor arrivals, the nearly six million visitors in 2016 was good enough but at the rate Cambodia is attracting visitors, it might overtake the Philippines in about three years (see table 1).


A rising tourism earner in the Philippines is the gaming sector. Huge hotels and casino resorts have sprouted in Metro Manila and more are poised to come in.

A friend who works in one of the big hotels at the Entertainment City told me that the minimum bet at the casino is P2,000; the maximum bet of course is the stratosphere. Only rich locals and foreigners would have the resources to make that kind of bet. The extent of job creation in the casino is very high with lots of workers and security officers being employed.

Revenues for the big hotels and the government-owned gaming regulator and operator at the same time, PAGCOR, are huge (see table 2).


Based on these numbers, one thing is noticeable — revenues from Philippine Offshore Gaming Operations (POGO). These are Philippines-based online gaming outfits that exclusively serve foreign markets and players (which means people in the Philippines cannot access their games). The same friend told me that the bulk of gamers in this new trend are from China.

In terms of installed capacity, Pagcor has the biggest number of electronic gaming machines with 9,751 in 2017 vs. Okada’s 2,914, Solaire’s 1,926, City of Dream’s 1,781, and Resorts World’s 1,381.

Two big hotel-casinos are coming to Boracay soon. The timing of their planned entry has added suspicion to the wholesale closure of the island from tourism. It is possible that the forced closure with no government compensation will drive many resorts to bankruptcy and this will open up new space for new players like these two big hotel-casinos.

The Duterte administration’s wholesale closure of Boracay for months is tantamount to indirect expropriation of private businesses. This sends bad economic signals to local and foreign investors. It also sends a bad political signal to the federalism push. The central government purports to give more power to the provinces and regions then it moves to totally disempower them. However you look at it, the move is bad for Philippine business, bad for ordinary Filipinos.
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See also:
BWorld 199, Charity and giving should not be legislated, March 27, 2018 
BWorld 200, IPR in the ASEAN and plain packaging in the West, April 03, 2018 

BWorld 201, Expanded environmental rights and anti-coal drama, April 05, 2018

Friday, March 18, 2016

BWorld 49, John Locke and Jovito Salonga

* This is my article in BusinessWorld last March 15, 2016.


When classical liberalism -- more individual freedom and personal responsibility, free trade, minimal government, and rule of law -- was formulated in Europe more than three centuries ago, the philosophy was caught by some Filipino intellectuals two centuries later. Not the entire philosophy but portions of it, like the people’s freedom of expression and assembly and freedom from (Spanish) colonialism.

Politically, portions of the philosophy were adopted by some Filipino politicians when they formed the Liberal Party after World War II, coming from the “liberal faction” of the dominant Nacionalista Party. Nationalism was the natural evolution of Philippine society after experiencing Spanish and American colonialism.


On March 10, 2016, the oldest living great statesman of the Liberal Party, former Senator Jovito “Jovy” R. Salonga (1920-2016) passed away. The man was so respected by many sectors of Philippine society mainly because of his intellectual prowess and excellent academic achievements: a law degree from the University of the Philippines (UP), Bar topnotcher in 1944 (tied with his friend and ally Jose W. Diokno), a Masters in Law from Harvard Law School, a Doctorate in Law from Yale University, and a Doctor of Laws Honoris Causa from UP.

Owing to these achievements plus his integrity, Salonga topped three elections as a senatorial bet despite his lack of huge resources: in pre-Martial Law 1965, in post-Plaza Miranda bombing in 1971, and post-Edsa Revolution in 1987, where he later became a Senate President.

Nearly three centuries before Sen. Salonga was born, the recognized “Father of (classical) Liberalism,” John Locke (1632-1704), an English philosopher and one of the great thinkers of the “social contract theory” was born.


There are some similarities in the ideas and writings of John Locke and Jovy Salonga on some topics. Two topics will be discussed here.

ROLE, PURPOSE OF GOVERNMENT
In a major work, Two Treatises of Government (1680-1690), Book II, Chapter 9, “Of the Ends of Political Society and Government,” John Locke argued that the main purpose of creating a government was to protect private property and have a rule of law. He wrote: “The great and chief end, therefore, of men uniting into commonwealths, and putting themselves under government, is the preservation of their property; to which in the state of Nature there are many things wanting.

“Firstly, there wants an established, settled, known law, received and allowed by common consent to be the standard of right and wrong, and the common measure to decide all controversies between them.

“Secondly, in the state of Nature there wants a known and indifferent judge, with authority to determine all differences according to the established law.

“Thirdly, in the state of Nature there often wants power to back and support the sentence when right, and to give it due execution....

“For in the state of Nature to omit the liberty he has of innocent delights, a man has two powers...

“The first power -- viz., of doing whatsoever he thought fit for the preservation of himself and the rest of mankind, he gives up to be regulated by laws made by the society...

“Secondly, the power of punishing he wholly gives up, and engages his natural force, which he might before employ in the execution of the law of Nature, by his own single authority, as he thought fit, to assist the executive power of the society as the law thereof shall require.

On the rule of law and not rule of men, John Locke continued:

“And so, whoever has the legislative or supreme power of any commonwealth, is bound to govern by established standing laws, promulgated and known to the people, and not by extemporary decrees, by indifferent and upright judges, who are to decide controversies by those laws; and to employ the force of the community at home only in the execution of such laws, or abroad to prevent or redress foreign injuries and secure the community from inroads and invasion. And all this to be directed to no other end but the peace, safety, and public good of the people.”

Sen. Salonga wrote a similar argument.

In his lecture at UP Diliman on “Good Government,” July 3, 1962, he argued that a responsive government is more than honest and efficient administration, but more importantly, one that promotes and respects social order and individual liberty. He wrote:

“What is a good government? Is it necessarily a government where the mass of public servants are honest and efficient? To my mind, this is not enough for in Italy and Germany during the war years, the great many were honest and efficient. In fact, during the tragic days of Mussolini, the trains in Italy ran on time as never before. The Nazi concentration camp system in Germany was a model of hideous efficiency, It may well be that in Soviet Russia today, the bulk of public servants are honest, dedicated and efficient -- even more so than in many places in the free world.”

And so, when we talk about good government, we should be careful when we discuss it in the context of a free society of free people. In such a society, the law is more than just a set of rules and decrees; it is a system of ordered liberty.

Now, that would involve us, it would seem, in some kind of internal contradiction. Order and liberty are concepts that are apparently inconsistent, when you have nothing but order, you have the makings of a garrison state and may eventually achieve what has been correctly phrased as “the unanimity of the graveyard.” When you have nothing but liberty, so that everyone is free to do what he pleases, you have no more and no less than anarchy and chaos. The eventual result is the rule of the strong over the weak -- which means loss of liberty itself. One is just as bad as the other.

EDUCATION AND GOVERNMENT
In his book, Some Thoughts Concerning Education (1693), Sections 91 -- 100, John Locke suggested that good breeding of grace and politeness of the governor, the tutor and the pupil, wrote,

“To form a young gentleman as he should be, ’tis fit his governor should himself be well-bred, understanding the ways of carriage and measures of civility in all the variety of persons, times, and places; and keep his pupil, as much as his age requires, constantly to the observation of them.... Without good breeding his other accomplishments make him pass but for proud, conceited, vain, or foolish.

“Courage in an ill-bred man has the air and escapes not the opinion of brutality: Learning becomes pedantry; wit, buffoonery; plainness, rusticity; good nature, fawning.

“Wherefore it is necessary that this part should be the governor’s principal care, that an habitual gracefulness, and politeness in all his carriage, may be settled in his charge, as much as may be, before he goes out of his hands.... The tutor therefore ought in the first place to be well-bred: and a young gentleman, who gets this one qualification from his governor, sets out with great advantage.”

In his speech, “The Educated Man,” delivered at Silliman University, Dumaguete City, Aug. 28, 1964, Sen. Salonga argued that the educated man is one who has a well-bred and meaningful life. He wrote,

“The educated man lives this kind of a life, because he has opened the windows of his mind to great thoughts and ennobling ideas; because he is not imprisoned by the printed page, but chooses to make a relentless, rigorous analysis and evaluation of everything he reads; because he is less interested in the accumulation of degrees than in the stimulation of his mind and the cultivation of a generous spirit; because his interest is less in knowing who is right but more importantly, in discerning what is right and defending it with all the resources at his command; because he can express himself clearly and logically, with precision and grace; because he is not awed by authority, but is humble enough to recognize that his best judgment is imperfect and may well be tainted by error or pride; because he has a deep reverence for the inherent worth and dignity of every human being, as a creature of God; because he has a healthy sense of values, a breadth of outlook and the depth of compassion which a purposeful education generates; because whenever he talks about good government he is prepared and willing to sacrifice himself for it; and because he lives a life of relevance to the world in which we live, a sharing in the problems of his time and doing whatever he can with intelligence and fairness and understanding.”

Our public policies, laws, and legislators have long been corrupted by the convenience of populism and welfarism, which is a shortcut to bribe voters’ support and justify high and multiple taxes, fees, fines, mandatory contributions and other forms of government regulations and intervention.

The spirit of more personal and parental/guardian responsibility in raising and educating children has been corrupted by more government responsibility in this aspect of the people’s lives. Thus, a culture of state-dependence instead of self-reliance, a culture of entitlement, and social expectation instead of independent citizenship, have been molded in the minds of both parents and children.

John Locke has lighted the candle of more individual liberty and rule of law as primary function of government more than three centuries ago. Sen. Salonga has also shared the same ideals half a century ago.

Thank you, good Senator. The current generation of thinkers and individuals should take the challenge of being free, self-reliant citizens, not people seeking entitlements and dependent on the state.


Bienvenido S. Oplas, Jr. is the head of Minimal Government Thinkers, a Fellow of the South East Asia Network for Development (SEANET), and a member of the Economic Freedom Network (EFN) Asia. All three entities believe in classical liberalism philosophy. minimalgovernment@gmail.com
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See also:
BWorld 46, China's debt, central planning and central crashes, February 27, 2016

BWorld 47, Renewable energy and the illusion of merit order effect, March 06, 2016

BWorld 48, On unilateral trade liberalization, March 17, 2016

Pol. Ideology 48: Hobbes, Locke, Rousseau and Social Contract Theory, September 09, 2013
Pol. Ideology 63, Alternative Economic System, May 25, 2015

Monday, September 09, 2013

Pol. Ideology 48: Hobbes, Locke, Rousseau and Social Contract Theory

A friend, one of the few real political science academics who can dabble in political theory and discuss things in their facebook walls or blogs, Amado “Bong” Mendoza  (http://bongmendoza.wordpress.com/) of the UP Pol. Science Department, posted the following in his facebook wall yesterday.

I like Bong's discussions about these three classical thinkers of the social contract theory, so I am reposting them here. "Social contract" is an agreement, explicit or implicit, between citizens and the State and how freedom and power are to be divided and implemented between them. I made a few comments to Bong's discussions. I added the years of those three classical thinkers plus Adam Smith. Photos (top, Hobbes and Locke; bottom, Rousseau and Smith) are from wiki.
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1. Thomas Hobbes (1588-1679). In the beginning, there was no state or public authority. Since there was no state, there was no law. Since there is no law, nothing is right or wrong. Everyone is free to do as she pleases. 

Consequently, life was nasty, short and brutish. Civilization was not possible in this so-called state of nature. However, since human beings were rational, they agreed to leave this world of delusion, of fake freedom and submit to the Leviathan's authority.

The implied social bargain is that submission to authority will result in a life so much better than that in the state of nature.

How is this discussion connected to the current abuse of public money by the Philippines' political class and its minions? One can argue that the rape of the public treasury sends us back to the barbaric state of nature.

2. John Locke (1632-1704) saw the social bargain to get out of the state of nature as one between each and every person who becomes a citizen of political society.

The people are the ultimate sovereign and government is its public servant.

There is a separate contract between the people and government. As public servant, the government is contractually obligated to protect the life and property of its citizens.

Failure to do so is a simple breach of contract.

However, if government itself (or key officers of government) actively defrauds its citizens of their lives (extra-judicial killings) and their property (plunder of the public treasury), this act is high treason.

Papa John warned that the sovereign people have the right to rebel against a grossly abusive "servant."

3. Jean Jacques Rousseau (1712-1778). Of the three social contract philosophers, Rousseau is the most controversial and less straightforward. He talked about people being "forced to be free" since they apparently do not know what's best for them.

And yet Papa Jean was concerned with, like other political philosophers, ensuring the freedom of the individual was compatible with the authority of the state.

The growth of human population has led to increased human interaction and interdependence. Beginning with his solitary noble savage, Papa Jean saw the emergence of inter-dependent societies that required ordering by political authority.

The noble savage is undoubtedly free. The status of the individual in inter-dependent communities is unclear. Papa Jean suggested that the latter have actually degenerated into class-divided societies where the rich impose unfreedom on the poor.

Rousseau is clearly dissatisfied with this set of affairs. He argues that the key to the reconciliation of individual freedom with state authority is the idea of the general will: the collective will of the citizenry taken as a whole. The general will is basis of law and is willed by one and all. In following the law, each citizen follows his own will and is thus free.

All of the discussion above may be Greek to us but Papa Jean made some practical points. He was not in favor of political parties because they represent narrow particular wills. He was also not in favor of representative democracy or government. In the determination of the general will, each citizen must directly manifest his preferences without being filtered by a representative.

Papa Jean was in favor of direct democracies which must be of necessity small in scope.

Will there be a need for pork barrel allocations in Papa Jean's direct democracies?

If so, what are the chances that they will be plundered?
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The following are my comments to Bong’s postings and his reply:

On #1, Hobbes: