BWorld 60, Classical liberal, neoliberal and anti-liberal

* This is my article in BusinessWorld last May 25, 2016.

Political labels sometimes tend to create more confusion instead of clarifying things on philosophy and ideology. One reason for this is that certain advocates and campaigners of particular philosophies are themselves confused of what they are talking about, and yet they project to be the leaders and articulators of those political philosophies.

Take liberalism.

There are perhaps a dozen varieties of this philosophy, from the classical to social liberal to American liberal and so on. To help us differentiate and redefine some variants of liberalism and its anti-thesis, the table below will help show different values and definitions.

Classical liberalism was articulated and developed some 2-3 centuries ago, based from the writings of John Locke (“social contract” theory), Adam Smith (“invisible hand of the market”), David Ricardo (theory of comparative advantage), among others.

Neoliberalism was articulated around 1930s and revitalized in the 1980s, with former UK Prime Minister Margaret Thatcher and former US President Ronald Reagan as key personalities of that period. Their movement though was considered as rebirth of Conservatism, not liberalism.

A number of the general advocacies of classical liberalism are carried out by neoliberalism. Anti-liberalism has various shades too, like socialism, communism, and fascism (see table).

In the Philippines and other parts of Asia, the people are treated to a “taste” of classical and European liberalism through the Friedrich Naumann Foundation for Freedom (FNF), a German political foundation affiliated with the Free Democratic Party (FDP) in Germany.

The foundation conducts national and international political education related to its philosophy of freedom. I have attended some of FNF-Philippines’ public fora and seminars related to free trade, investments liberalization, and human rights protection. I have also attended the International Academy for Leadership (IAF) in Gummersbach, Germany in late 2008, on “Local Government and Civil Society.”

The German liberals’ definition of decentralization and subsidiarity is indeed radical: Things and functions that can be done by the local government need not be done or provided by the central or national government. And functions that can be done by civil society and various voluntary organizations and associations need not be done or provided by the local governments.

And that shows the ideological superiority of liberalism over other philosophies in the planet, especially over socialism and (classical) conservatism: The primacy given to individual freedom and personal/parental responsibility. The freedom to be hardworking and efficient and the freedom to be lazy and complacent.

FNF Philippines’ Country Director from 2010-2016, Jules Maaten, a former member of the EU Parliament, is leaving his post to become an FNF Regional Director in South Africa. Within those six years, Jules has befriended many Filipino politicians and media people, civil society leaders, think tank officials and academics.

Asked about his most memorable moments and events in the Philippines, Jules said it’s the Filipino people themselves. Warm, friendly, jolly, always singing, etc. He also remembers the Filipinos’ reception to the philosophy of freedom, including the huge participation in the annual “Freedom Run” led by the mascot “Fredo.” And things that he did not like somehow is the lack of real competition in Philippine politics and the economy and the lack of ideology-based political competition which, as it stands, is replaced by personality-based politics.

Jules’ predecessor, Siegfried Herzog, became a Regional Director for East and Southeast Asia, while Jules’ successor will be Wolfgang Heinze, a young, tall, and cool German liberal.

Meanwhile, the entry of the new administration in the Philippines for six years under incoming President Rodrigo Duterte seem to be more of a continuation of the liberal economic policies of the outgoing administration of President Benigno S. C. Aquino III. In some cases, the new administration promises to be more liberal, more investment-friendly than the current one because of the plan to remove the restrictions on foreign investments and allow 100% foreign equity ownership on more sectors of the economy except land ownership.

Anti-liberal policies on the other hand, like the nationalist and socialist measures in Venezuela has created more underdevelopment, more poverty among its people. Restricting if not killing innovation and price segmentation is a perfect formula to court economic disasters and social misery.

More economic freedom, individual liberty, diversity and spontaneity, innovation and market competition, less government intervention and taxation, will usher in more creativity among entrepreneurs and workers.

Government function should be focused on enforcing the rule of law and protection of the citizens’ three freedoms -- freedom from aggression, freedom to own private property, and freedom of self-expression.

Bienvenido S. Oplas, Jr. is the head of Minimal Government Thinkers, a SEANET Fellow and member of the Economic Freedom Network (EFN) Asia. minimalgovernment@gmail.com

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See also: 
BWorld 57, Eric Hoffer, Machiavelli and Duterte, May 06, 2016 

BWorld 58, INDCs and PH energy realities, May 14, 2016 

BWorld 59, Free trade and Norwegian salmon, May 28, 2016

Pol. Ideology 51: Liberalism is Not Welfarism, September 17, 2013

Pol. Ideology 55: Jules Maaten's Lecture on Liberalism, May 11, 2014 

EFN Asia 40: Liberalism, Growth and Reducing Inequality, August 19, 2014 

My Second Book: Liberalism, Rule of Law and Civil Society, September 02, 2014 

Pol. Ideology 60: Lecture in Nepal on Liberalism, Rule of Law, Civil Society, January 13, 2015

Whisky and Liberty, Jules Maaten's farewell party

Last night, Friedrich Naumann Foundation for Freedom (FNF) Philippines Country Director Jules Maaten conducted and hosted a "whisky workshop". My first time to attend such kind of activity as I am a barbarian when it comes to some high end drinks, European whisky brands. It also served as Jules' farewell party to some friends. To my right here will be his successor, incoming Country Director Wolfgang BL Heinze. 

I talked to Eva, Jules' wife, she said she wished they won't leave the Philippines because of so many friends they have developed the past 6 years (though it seemed like 3-4 years ago when Jules came here to replace Siggi Herzog who became a Regional Director of FNF). But she's looking forward to a new adventure, new friends in S. Africa, Jules will be overseeing FNF's work in several countries south of that continent, many of which are really economically undeveloped and politically repressed. Injecting the philosophy of economic freedom and individual liberty in the  minds of the people and politicians there will be a tough job.

Another pose. L for Leni Robredo and the Liberal Party (LP).

The other guests that night, mostly Europeans, have already left when this group photo was taken. The workshop consisted of Jules discussing each bottle, their  properties and taste, where they are produced, then people taste it, fellowship. After about 10 minutes, Jules calls the crowd again  to discuss the next bottle.

I think this is the "amoy sapatos" whisky that Jules discussed.

I tasted almost all of them, in small quantities + water. Being a non-whisky drinker, I found their taste and smell ranging from strong to exotic to weird. Especially the "amoy riot" or smelling like burned tires on the road. :-) 

Later I shifted back to beer. Good that Jules has a stock of San Miguel pilse at the fridge. Below, Mikael de Lara and Samuel's daughter leading the guitars and songs. U2's "with or without you", others.

Before leaving the place, almost 12 midnight, I gave an unsolicited, impromptu speech discussing the role of FNF in general, and Jules in particular, in my field -- the free market think tanks and NGOs in Asia through the Economic Freedom Network (EFN) Asia. FNF is known more for helping liberal and democratic political parties like the LP via the Council of Asian Liberals and Democrats (CALD).

Nice food, including different types of cheese, drinks, singing, impromptu concert by Noel Cabangon, etc. Thanks again Jules.

Photos mostly from Bing Salvador. Thanks Mikael for the ride.

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See also:
FNF Philippines and Liberal Challenges 2013-2016, June 14, 2013Jules Maaten's Lecture on Liberalism, May 11, 2014

IAF Alumni, Meet and Greet 2015 at FNF Manila

Last Thursday night, October 22, the Friedrich Naumann Foundation for Freedom (FNF) - PH Office hosted its annual reunion for alumni of the International Academy for Leadership (IAF), short courses and seminars (1-2 weeks long) in Gummersbach, Germany. Here, FNF PH Country Director Jules Maaten speaking, giving the opening remarks.

It's a beer and sausages reunion. Venue was the San Lorenzo Village multipurpose hall, Makati City. Below, lots of huge German sausages, sliced. And pork bar bq, and litson manok.

Two choices of beer, Lager and dark, free flowing from two huge kegs of beer beneath the dispenser and plastic cups. I feasted on both, one after the other, my tongue enjoyed the roller-coaster change of beer tastes. :-)

Program MC was Pauline Sanchez. She called on three alumni -- Jorgia Salonga, Mikael de Lara Co, and Tricia Robredo -- to briefly share their experience at the IAF in Gummersbach. Below, Assistant Sec. Kael de Lara Co.

Pauline asked for any volunteer from other alumni who wanted to share their experience, I raised my hand. I said that I  attended the seminar on "Local Government and Civil Society", late October 2008. Our seminar facilitators defined decentralization as those functions that can be done by the local governments, do not assign to the national government. And civil society is defined as those functions that can be done by civil society, of mature and responsible individuals, do not assign even to local governments. Which means that a state of civil society has the smallest, leanest possible government presence.

I find this political philosophy the most radical in the planet, at least among the major ones (vs. socialism or conservatism or democratism, etc.). And that makes me a big fan of (classical) liberalism and the FNF.

After the short sharing of experience, the game -- we were divided into four groups. A quiz, on six subjects -- general knowledge, movies, music, food, sports, and another one. 

Our group was the overall winner, thanks to the great and quick minds of John Coronel, Taikee Calleja, Noel Medina, and Lambert Ramirez. My contribution to such victory was minimal, if any :-)

The group photos, fun and wacky. Beside me is former Cong. Erin Tanada.

Then the karaoke and sing along. Outside the room, near the beer and sausages, someone pulled out a guitar and there was another round of singing. Kael, Paolo Zamora and Bing Salvador are good guitarists. We sang some songs by U2, Bob Marley, Pearl Jam, other rock bands.

Thanks again Jules, FNF-PH team, for another fun-filled night and reunion with my fellow IAF alumni. FNF events are always among my priorities, so long as I get an invitation.

All photos above from the FNF-PH Office fb page.
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See also:
Decentralization 3: Challenges to Local Government, November 18, 2008 
IAF Seminar 2008, Gummersbach, Germany, January 21, 2011 
FNF Philippines and Liberal Challenges 2013-2016, June 14, 2013 
IAF Seminar, Gummersbach, Germany, Part 2, October 13, 2013 
Rule of Law 22: IAF Seminar in Germany, April 09, 2014

Freedom Flame Awards 2014

Last week, December 04, 2014, I attended the Freedom Flame Awards 2014 and Freedom Dinner sponsored by the Friedrich Naumann Foundation for Freedom (FNF) Philippine Office. It was held at Enderun Colleges, Mckinley Hill, Taguig City.

There are eight awardees this year but only four came. From left: Peter Perfecto of the Makati Business Club (MBC), Arpee Santiago of the Ateneo Human Rights Center (AHRC), Vergel de Dios of the Center for Media Freedom and Responsibility (CMFR) and Jess Lorenzo, taking the place of his mom-awardee who passed away, former Mayor Sonia Lorenzo of Nueva Ecija. Great guys.

The Freedom Speech was given by Congw. Leni Robredo, 3rd District of Camarines Sur, and wife of the late Jesse Robredo, then DILG Secretary when he died in a plane crash. Congw. Leni is a humble and simple lady, soft spoken. She talked about her dreams and legislative proposals to advance more transparency and accountability in government.

She said, "Filipinos are truly enjoying more freedom now than two decades ago. But if the question is 'are we satisfied with this freedom?,' to my mind, the answer is 'not yet.'" See other things she said here.

When former Sec.Jesse Robredo was still alive, I  was able to hear him in one forum at Mandarin Hotel where he was a speaker. He was very explicit in saying that business bureaucratism by government is wrong, so when  he was the Mayor of Naga City, among the things he did was to drastically cut the approval process of getting a business permit. Within months as  Mayor, he cut the number of signatures and days to release the business permit by at least half.

To me, that is the mark of a good liberal -- less government bureaucratism, less or no unnecessary permits and fees imposed on the public -- and not so much about more transparency of a bureaucratic and tax-hungry government. Well I am no fan of BIG government, regardless of "good governance" rhetorics that people may say.

Many people came, friends of FNF in the country. During dinner, I sat at the table of Arpee Santiago with his wife and staff at AHRC.

After dinner and while sipping wine, I sat with the De La Salle Univ. (DLSU) group. Political Science Department faculty members, from left: Roman Dannug, Ian Jason Hecita, and Francisco "Kiko" Magno. The latter is also the Director of the Jesse Robredo Institute for Governance of DLSU, also a friend from UP Sapul in the 80s, and a wedding godfather :-).

FNF-PH Country Director Jules Maaten joined us for another photo. I told Jules, "at dinner I sat with the Ateneo group; after dinner, I sat with the La Salle group, but I am indifferent of these two schools." Jules asked, "where did you study", "UP" was my quick reply and I have no intention to change school affiliation or loyalty, hehehe.

At last year's Freedom Flame Awards held in Intramuros, Manila and attended by many foreign guests, Asian politicians from the Council for Asian Liberals and Democrats (CALD) and some European politicians and leaders from Liberal International (LI), there was a fireworks display. This year, there was a lights show at the quadrangle, just outside the venue.

Another great event. Thanks for the invite Jules.
All photos from FNF-PH fb album.
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See also:
25 Years of Liberalism in the Philippines, December 07, 2011 
Freedom Flame Awards 2013, November 13, 2013 
Freedom Flame Awards 2: More Photos, November 25, 2013 
Freedom Flame Awards 3: The Magazine, April 21, 2014 
Jules Maaten's Lecture on Liberalism, May 11, 2014

Freedom Run 2014

This morning, I attended the 4th Freedom Run sponsored by the Friedrich Naumann Foundation for Freedom (FNF) in partnership with other organizations, government offices and private enterprises. It was a big number of runners today, more than 3,200 people registered. The first five photos below from the FNF fb page and Jules' camera.

From left: FNF Country Director Jules Maaten, European Chamber of Commerce Past President and  convenor I think  of Integrity Initiative, Henry Schumacher, Napocor President Gladys Cruz-Sta Rita,  Cong. Erin Tanada, and LLDA Gen. Mgr. and former CALD President Neric Acosta.

It was fun in the early morning, with early band performers, warm up exercises, etc.

The marshall though told the 10K runners, me included, to go to the starting line early, and this is far from the stage. So we missed some  of the speakers.

Actor Dingdong Dantes was there, he arrived late I think. He joined the 3K runners. Last year, he also joined the Freedom Run, with gf Marianne Rivera.

This one-legged runner, the other leg on prosthetics, impressed me. I took his photo on our way back to the start/finish. Then I briefly ran with him, he said he met an accident, his left leg was amputated.

This is my 4th, straight participation in Freedom Run. The 1st Freedom Run in 2011 held in UP Diliman campus. It was only a 3K and 6K run, many joined it. This photo taken by Jules Maaten.

The 2nd Freedom Run in 2012 was held in Taytay, Rizal, going to a portion of Laguna Lake, and back. I ran the 10K.

The 3rd Freedom Run in 2013 was held at the Quezon Circle, going to Commonwealth Ave. and back. Here with friends from FNF, from left: Julianne S. of the regional office in Bangkok, Thailand, Pimrapat also from Bangkok, Sungeun Lim from FNF Korea, and Wimonpug also from FNF Thailand.

Today, I met a friend from Congress Mountaineers, Doming Gonzaga. He also ran the 10K.

Another fun day. Thanks FNF for organizing such a famous running for freedom annual event.
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See also:
Freedom Run 2011, November 28, 2011 
Freedom Run 2011 and 2012, November 03, 2013
Freedom Run 2013, I will Run the 10K, November 09, 2014
Freedom Flame Awards 2013, November 13, 2013

My Second Book: Liberalism, Rule of Law and Civil Society

My second book has been published, finally. It is an ebook freely available at http://fnf.org.ph/epub/

I copy-paste here these 3 short sections.

Table of Contents

Foreword

Introduction

Acknowledgments

Chapter 1: Friedrich Hayek, Liberty and Rule of Law

Chapter 2: Local Government and Civil Society

Chapter 3: Liberalism, Conservatism and Socialism

Chapter 4: Raison d' Etre of Government

Chapter 5: Anarchy vs. Minarchy

Chapter 6: Pork Barrel Sacndal and Liberalism

Chapter 7: Conclusion

Chapter 8: Afterthought: Nonoy Oplas and The Spirit of Aristotle

Foreword:

This book is special.

Firstly it is special, of course, because of its substance. This wasn’t written in a whim. Here culminate musings and ideas that were accumulated over many years of thinking, while the author was observing the goings-on in society with his usual sharp vision. And now, in one book, these thoughts erupt all at once, like a volcano.

Moreover, this book is special because of its author. Nonoy Oplas, one of the outstanding individuals who was awarded a Freedom Flame by FNF Philippines in 2013, is an original thinker if ever there was one, who gives his views no holds barred, and who is just as happy when he gets a standing ovation as when he gets booed off the stage – so long as he has made his audience consider, or preferably re-consider, any common theory and established practice. What Mr. Oplas enjoys most, is pointing out when the emperor wears no clothes. Such people are the lifeblood of democracy.

He is also one of the rare individuals who understands both the world pure, uncompromising radical thought, and the world of compromise that politicians inhabit. This makes him a fiendishly effective individual, for whom there is no higher value than the trust that he puts in the capacity of individuals to handle – and solve – the problems that they encounter on their journey through life. And these are values that we all need to be reminded of, from time to time.

Prepare to be challenged, in the pages that lie before you.

Jules Maaten,

Country Director

Friedrich Naumann Foundation for Freedom Philippines

January 2014

Introduction

Power to the people.

Probably the most abused cliché on this side of the world, it had also proven to be a most dangerous idea for some. We have heard it preached to high heavens by those whose idea of “power” ultimately involves only their own, and had, for a time, succeeded in persuading people to abandon their own will to govern. Sadly, the temptation to believe that our only power and responsibility to ourselves and to society is that we are able to choose those who would govern us, then marvel at our ineptness to choose the right people.

The Filipino had seen it all, hoping at every painful turn, at every epic fail, that his conversation with history would not end. Because now he is learning to listen.

Liberalism, Rule of Law, and Civil Society more than aids in furthering this conversation, it intends to push the conversation up to a level of exchange that provokes everyone to ask the questions that really matter. What would it take for every Filipino to take responsibility for his country’s future? When will the talk about government and good governance ever come down from academic debate to the kitchen table?

Set in the backdrop of classic Liberalism as espoused by the works of Locke, Hayek, Von Mises, and Thatcher, Bienvenido “Nonoy” Oplas book shines the light of reason in the continuing debate on the very definition of modern civil society, in works that detail the enormous body of contemporary liberal thought that is global as it is uniquely Filipino.

A leading champion of minimal government, Nonoy rephrases and recasts the lingering question on the purpose of government and the duty of the governed, and traces the opulent roots of today’s problems with a probing eye for the unseen ties that bind, connect, and complicate the search for national redemption.

Liberalism, Rule of Law, and Civil Society is also more than a political treatise, as it documents the author’s personal journey from a cynic who had to “unlearn many things that polluted his understanding of civil society”, to being one of the leading scholars and advocates of liberal thought in the Philippines. It is indeed, an honour to have known the man as a friend, a classmate at the UP School of Economics, and a loyal alumni of the UP Economics Towards Consciousness. He is a gifted thinker, tireless in his search for solutions to his country’s woes.

The Friedrich Naumann Foundation for Freedom Philippines had another veritable gem in their treasury of publications.

With this book, Nonoy’s call for “small government, small taxes, free market, personal responsibility” gets even bigger.

Ma. Gladys Cruz-Sta. Rita

President/CEO of National Power Corporation,

Author, Running a Bureaucracy (2008)

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* See also: 
My first book: Health Choices and Responsibilities, March 29, 2011
Health Choices and Responsibilities (full book)

EFN Asia 39: Rainer Adam's Farewell Letter

I received this warm, friendly and well-written farewell letter today from Rainer Adam. I have met him first time -- along with many Friedrich Naumann Foundation for Freedom (FNF) officials, Asian free marketers and friends -- in 2004, 10 years ago in Hong Kong, for the Economic Freedom Network (EFN) Asia conference. After that, I would meet him yearly except in 2007 and 2009, for the annual EFN conferences or some FNF major events here in Manila.

Cool guy, always smiling. When I first met him in 2004, I immediately thought that he looked like Eric Clapton, among my favorite rock stars.

I am very thankful to Dr. Jo Kwong, the former Vice President of Atlas Economic Research Foundation, for bringing me to the EFN conferences in 2004 to 2006, even if Minimal Government was still not a member of the network. We became EFN member only in 2009 I think. If Jo did not bring me to the 2004-2006 conferences, Minimal Government may not have been part of the EFN and the Asian free market network, I don't know.

Rainer, good work. No. Rather, excellent work.
Siggi, expect the same support and friendship from us.
It's all about Freedom. And free trade, rule of law, personal responsibility and limited government.

PS: the above photo, plus another one below, I got from Rainer's fb wall.
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Bangkok, 17.06.2014

To all FNF partners,

Dear friends, partners and Asian liberals,

Some of you already know that this year in June my term as the Regional Director for Southeast and East Asia of the Friedrich-Naumann-Foundation for Freedom will come to an end. After six years in Thailand and over 26 years of living and working in Asia, the time has come for me to say goodbye to you.

From September onwards I will take up my new position as FNF Regional Director for Central-Southern- and Eastern Europe in Sofia, Bulgaria. The place may be a different one; however, the goal stays the same: to promote freedom, liberal values, human rights, free trade, democracy and the rule of law.

I would like to take this opportunity to express my appreciation and gratitude for your support, friendship and cooperation during the last six years. Without your help the Foundation would not be where it is today, a trusted member of the Asian freedom community.

During my time in the region, I had the good fortune to witness many exciting developments. Let me share some of them with you:

* A major highlight of 2010 was the election victory of the Philippine Liberal Party (LP). Together with a delegation of the Foundation, I had the chance to witness President Noynoy Aquino’s celebratory inauguration in Manila. President Aquino kept his campaign promises. Today, the Philippines shows significant economic growth and a reduction in poverty. The government is fighting corruption and promoting people centred development.

* 2010 also marked the beginning of Myanmar´s journey towards democracy. After years of military dictatorship, President Thein Sein implemented a number of remarkable reforms: most political prisoners were released, opposition parties can participate in politics, markets opened up and the population enjoys a whole new set of civil liberties. The Foundation has supported democratic developments in the country for many years. Therefore, the opening of the FNF office in Yangon in 2013 was a natural development and a special milestone in our work, marking our long-term commitment to promoting freedom, human rights and the rule of law in the country.

* Myanmar was not the only office opening I witnessed. One year before, in 2012, the doors to the new FNF Vietnam office were opened in Hanoi. Philipp Rösler, at that time German vice-chancellor and minister for economy, gave the inaugural speech and honoured us with his presence.

* Liberal forces become increasingly visible in our region. In 2011, the Liberal International (LI) Congress in Manila was the first time this important gathering of Liberals from all over the world was held in an Asian country. Manila is also the home base of the regional network of Asian liberal parties, the Council of Asian Liberals and Democrats (CALD). The network is constantly growing. In 2012, the Mongolian Civil Will and Green Party was accepted as the 10th member party.

* Our regional partner in the promotion of human rights, a field of utmost importance to us liberals, the Regional Working Group for an ASEAN Human Rights Mechanism (RWG), has made good progress in its advocacy work.

* The Economic Freedom Network Asia (EFN) was able to hold annual conferences to discuss important topics of economic freedom, and bring political decision-makers and analysts together to foster better mutual understanding of the benefits of free trade, economic growth and free markets.

* Furthermore, I am proud that some of our programs – namely It’s all about freedom (Philippines), Dream Thailand and SIM Democracy (both from Thailand) – were included in the best practice manual of the Council for a Community of Democracies.

* Our Freedom Barometer Asia has become a well-established analytical framework and tool to measure freedom in the region and to stimulate debate and conversations about concrete policies increasing personal liberty and individual responsibility.

Free Trade 35: EU-FNF Forum on 'FDI Engine for Job Growth'

Last Tuesday, May 13, I attended the EU-FNF forum on "Foreign Direct Investment: Engine for Job Growth" held at the Mind Museum, Fort Bonifacio Global City, Taguig. It was a powerhouse forum. Welcome messages given by Jules Maaten, Country Director of the Friedrich Naumann Foundation for Freedom (FNF) in the Philippines, and Guy Ledoux, Ambassador of the European Union (EU) Delegation to the Philippines.

Amb. Ledoux expressed further optimism about the Philippines and its business environment, saying that European investors are the biggest bloc of foreign direct investment (FDI) in the Philippines. A summary of the forum is also posted in the FNF website, EU FDI in PHL to Double in Five Years and there is a long quote from Amb. Ledoux there.

House of Representatives Speaker Feliciano "Sonny" Belmonte (in barong, seated right in the photo below) spoke and mentioned that he personally supports amending the PH Constitution and remove restrictions to foreign investments. He enumerated several important Congressional bills that will help encourage the entry of more FDIs. Like the Anti-trust or Competition Law, Tax Incentives Management and Transparency Act, amendments to the Build-Operate-Transfer Law, Cabotage Law, among others.

I stumbled on this data from the IMF. Not only direct equity but other forms of asset inflows were used here, hence, a total of $28.4 billion inward direct investments were recorded in 2012. But interestingly, many Philippine-based businessmen, local and foreign, sent their money to the Cayman Islands and Virgin Islands. The two are considered as among the "tax havens" around the world because of the low taxes, low bureaucracies they slap on money coming from anywhere around the world. Which should be a lesson to the central bank and other government agencies: the less that you monitor and bureaucratize foreign investments and savings, the more that that they will come to you.

source: IMF, Coordinated Direct Investment Survey (CDIS)

The four important speakers in the first session, from left: Department of Trade & Industry (DTI) Secretary Gregory Domingo; Andrew Powell, Managing Director of Bosch Philippines, Amb. Ledoux and Donald Kanak, Vice Chairman of the EU-ASEAN Business Council.

Interesting point from Bosch: the company being innovation driven, is inventing and innovating a new product every 25 minutes on average. Wow. Mr. Kanak said that by having more investments and competition, more high paying jobs are created, which provide more consumer and tax base for the country.

Sec. Domingo mentioned that one of the important assets of the Philippines is its big and young population. Yes, I fully agree. Big and young population is an asset, not a liability, that is why I never supported the RH bill, now called RH law. The average age of Filipinos, about 24 years old, is almost half that of Japan, 44 years old. Soon Japan, Taiwan, S. Korea, many European countries, will be begging for more Filipino workers and managers to run their factories, banks, hotels, offices and households. Or if their immigration policies will remain paranoid to the entry of more immigrant workers, many companies in those countries will locate here and take advantage of the country's big, young and trainable manpower.

From left: Jules Maaten, Coco Alcuaz of ANC who acted as moderator in the panel discussion of these four prominent speakers.

The next panel was bigger, five speakers and five reactors, moderated by Mr. Vergel de Dios, a veteran media man. The speakers were (1) National Economic & Development Authority (NEDA) Assistant Director-General Rosemarie Edillon, (2) Public-Private Partnership (PPP) Center Director Eleazar Ricote, (3) European Chamber of Commerce in the Philippines (ECCP) President Michael Raeuber, (4) Rep. Anthony del Rosario of Davao, and (5) Philippine Chamber of Commerce & Industry (PCCI) Honorary Chair Donald Dee.

The panel of reactors were (1) Philippine Institute for Development Studies (PIDS) President Dr. Gilberto Llanto, (2) Foundation for Economic Freedom (FEF) President Calixto "Toti" Chikiamco, (3) Makati Business Club (MBC) Project Coordinator Jose Cortez, (4) Spanish Chamber of Commerce in the Philippines President D. Javier Warleta, and (5) EU Head of Trade Section Walter van Hattum,

Toti Chikiamco pointed out that more than the high cost of electricity, what bothers many investors, those in SMEs in particular, are the high government-imposed minimum wages. Plus the various mandatory social contributions. This is a good point. Employment is a private contract between the employer and employee. A job applicant seeking high pay and many benefit package must compete with other job applicants with better qualifications and longer work experience, in landing that job. Government should come in only to enforce a private contract between the two camps if there is dispute in the interpretation and implementation of the contract. Government has no business actually setting what should be the minimum wage, the minimum benefit package, and so on. Minimum wage laws protect only those who already have jobs while providing no protection to those who are jobless or are still seeking work.

Movement of FDI is directly related to movement of goods and services across countries and continents. Free trade and free mobility of factors of production are closely linked. When the business environment at home becomes more rigid, more bureaucratic and over-regulated, more taxed, investors and professionals will seek other location where they can do business in a freer environment.

As Europe becomes more bureaucratic, economies in Asia become good prospects for investments as our politicians and bureaucrats here have not mastered yet the art of heavy bureaucratism that their counterparts in Europe and North America practice. FDI is both demand-pull and cost-push.

Lots of good speakers, and lots of food after, it was a good forum.
All photos except the table are from FNF facebook page.
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See also:
Free Trade 31: FTAs, EPAs and the Heckscher-Ohlin Theorem, January 10, 2014
Free Trade 32: Hong Kong's Unilateral Trade Liberalization and John Cowperthwaite, February 12, 2014 
Free Trade 33: ASEAN Economic Community 2016, February 16, 2014
Free Trade 34: ASEAN's Bilateral and Regional FTAs, February 27, 2014

Pol. Ideology 55: Jules Maaten's Lecture on Liberalism

A very informative lecture given by Jules Maaten last Tuesday night at our Rotary Club of Taguig Fort Bonifacio, along with RC Makati Pio del Pilar.

 Not many people were able to come though although they really wanted to hear Jules' talk. Like at least three from the Initiatives for Filipino Liberty (IFL) group, at least three from our club, and so on. So this blog post is for those who were not able to come and regular readers of this blog.

At the onset, Jules defined Liberalism as:

* It is the philosophy of liberty

* It is a philosophy of empowerment

* Origin in protecting the individual against institutions of power.

This quote from JS Mill, among the classical thinkers of liberal philosophy, is clear and direct.

Then Jules specified how the  philosophy is applied, Liberalism in Politics:

* Protection of individual rights

* Equality of all human beings under the law

* Balance and separation of powers

* Belief in liberal representative democracy

* Balance between majority rule and the rights of the minority

* Weary of (state) authority, but state is rights guarantor

* Limitation and decentralisation of government powers

* Separation of church and state

I like this quote from my favorite economist and philosopher, F. Hayek. Yes, allow people to decide things for themselves, to make mistakes, to excel.

Then he discussed what is Liberalism in Economics:

* Belief in free enterprise and free markets with many players

* Protection of private property

* Support for free trade

* Privatisation of services better provided by the private sector

* Competition, no private monopolies

* Role for state where market does not function (education, environment, culture, social policies)

* Don’t leave debts to future generations.

The last item is important. As Germany and many European and rich economies go deeper and deeper in public debt, with huge interest payment annually, the economic freedom and well being of the future generation is heavily compromised.

Lecture on Liberalism, German Politics and the FNF

This coming Tuesday, May 06, our club and the RC of Makati Pio del Pilar will have a joint meeting with a distinguished speaker, the Country Director of the FNF, and a former Member of the European Parliament (MEP), Jules Maaten.

There is good feedback about this "interesting topic" and hence, we hope many people, rotarians and non-rotarians, will come and listen to Jules.

A short background. All political foundations (Friedrich Naumann Foundation/FNF, Friedrich Ebert Foundation/FEF, Konrad Adenauer Foundation/KAF, Hans Seidel Foundation/HSF,...) are affiliated with German political parties. FNF is affiliated with the Free Democratic Party (FDP, liberals and democrats); FEF is affiliated with the social democrats and socialists; KAF is affiliated with the Christian Democrats, the party in power by Angela Merkel, and so on.

These political foundations get their funding from their political party affiliation in Germany. Thus, the bigger the votes achieved by the political party, the bigger is the funding of their political foundation. That makes KAF having lots of money.

The goal of those pol. foundations is to conduct political education worldwide related to their respective political philosophy. Thus, FNF is promoting liberalism and free market, FEF is promoting welfarism and implicit socialism.

German politics is important because Germany is the biggest economy in Europe. Thus, policies by the ruling party or coalition largely determine the direction of the German economy and foreign policy. Like how to deal with the public debt crisis of Portugal-Ireland-Greece-Spain (PIGS), the future of the Euro currency, the Ukraine-Russia conflict, and so on.

As usual, no registration fee, people will just pay for their own meals and drinks. Hope to see you there, Manila-based readers. Thanks.

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See also:

German Elections 2013: Big Defeat for the FDP, September 23, 2013

Pol. Ideology 51: Liberalism is Not Welfarism, September 17, 2013

Pol. Ideology 52: What is the Main Purpose of Government?, October 29, 2013 

EFN Asia 35: Rainer Adam and Economic Freedom in Asia, March 11, 2014

EFN Asia 35: Rainer Adam and Economic Freedom in Asia

The FNF Regional Director for East and Southeast Asia, Dr. Rainer Adam, will soon leave our continent as he is assigned by FNF HQ to head the regional office in Eastern Europe. To know more about Rainer, here is a brief note from a good friend and long-term EFN PARTNER, Barun Mitra of the Liberty Institute in Delhi, India. Barun posted this in our yahoogroups today.

Dear Friends,

Here is a video prepared by FNF showing Rainer in different roles
https://www.youtube.com/watch?v=ssGAR4AHp6s

Rainer Adam needs no introduction to anyone in this group. Over the past 25 years that he has been in Asia, with the Friedrich Naumann Foundation for Freedom, he has built bridges among liberals and democrats across
the continent, and introduced the ideas of liberty to many new comers.

It is difficult to think of the liberal network in Asia, without Rainer. FNF has now posted Rainer to Europe. But the enduring friendship and the ideas he has planted in Asia will last a very long time.

I had met first met Rainer in 1994, when he was the FNF representative in China, and hosted the first major international free market conference in Beijing. That was my first encounter with the international group of free market, liberal and democracy scholars, activists, and policy makers. I learned about the world of think tanks, and Liberty Institute was formed about a year after that gathering in Beijing.

I still remember Beijing at that time when traffic jams during peak hours used to be caused by thousands of bicycles, and not cars as it is today!

After Beijing, Rainer was posted in India, looking after South Asia, then in Indonesia, and lastly in Bangkok, nurturing the seeds of liberalism in east and south east Asia.

Another reason I will remember Rainer is for the colourful choice of shirts, with typical Asian designs and motifs! Those shirts truly reflected Rainers personality, cheerful, helpful and always encouraging and inspiring. Rainer had adopted Asia with all its diversity as his own.

We will miss him in Asia. And I hope he would still have some opportunities to participate at the EFN Asia, and other FNF programmes in Asia.

I wish Rainer all the best in his new position in Europe. Rainer enjoys a challenge, and currently old continent has plenty to whet his appetite.

Best,
Barun

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Short but good and nostalgic points Barun, thanks.

I have met Rainer first time in September 2004, when I was first introduced to the Asian free market and liberal network through the Economic Freedom Network (EFN) Asia conference that year in Hong Kong. He looked like Eric Clapton so being a rocker, I liked his pose. I think I told him that he looked like Eric Clapton and that I was a Clapton fan then, until now actually. was the country director then of Indonesia. In this photo, with daughter during the FNF PH 3rd Freedom Run in Manila last October 2013.

The Regional Director that time was Hubertus von Welck, a tall and mild-looking gentleman, he could be about 6'5" or taller. Then Hubertus was assigned to Africa and Rainer took his place, about six or seven years ago.

Photo, Rainer with country directors and some chief of staff in the region. Also taken last October in Manila during CALD's 20th anniversary.