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.

EFN Asia 37: Jeju Forum 2014, On Globalization and Inequality

For the second time, Economic Freedom Network (EFN) Asia participated in the Jeju Forum for Peace and Prosperity annual conference, held at the southern island-province of Jeju, South Korea. This year's conference ran from May 28-30 with the theme, "Designing New Asia."

Below is the group photo of EFN delegates to the 2014 Forum. From left: Lars Andre Richter, Country Director of the Friedrich Naumann Foundation for Freedom (FNF) for South Korea, Dr Sethaput from Thailand, Sungeun Lim of FNF Korea, Dr Stella Quimbo of the Foundation for Economic Freedom (FEF) in the Philippines, Rainer Adam, the outgoing FNF Regional Director for East and Southeast Asia (he's moving to head the FNF Regional office for East and Central Europe next month), Peter Wong of Lion Rock Institute (LRI) in Hong Kong, Miklos Romandy of FNF Regional Office in Bangkok, and Pett Jurapaiboon, the Regional Program Office of EFN Asia.

Not in the picture but part of the EFN delegation are Dr Choi Byung-il from Korea, and Vietnamese Deputy Minister, Dang Huy Dong. 

In the Jeju Forum 2013, this is the EFN delegation, below. From left: Sungeun Lim of FNF Korea, me, Ms. Kim also of FNF Korea, Wan Saiful Wan Jan of IDEAS (Malaysia), Lars Andre Richter, Pham Chi Lan (Vietnam), Feng Xingyuan (China), Tricia Yeoh (Malaysia), Pett, Barun Mitra (India), Miklos Romandy (Austria), Liu Junning (China). Not in the photo with our group was Sam Raimsey (Cambodia) and Dr. Choi Byung-il, they went somewhere when the photo was taken.

Dr. Rainer Adam gave the opening message for the EFN session today on "Globalization and Inequality".

The EFN panel of speakers and discussants. Peter Wong was the panel moderator while Deputy Minister Dong was the main speaker.

Last year, this is our panel. Wan Saiful was the panel moderator and Sam Raimsey (3rd from left) was the main speaker. Lars gave the opening message while German Ambassador to S. Korea, Rolf Mafael (5th from left) gave the closing remarks. I was the panel rapporteur, I was sitting and listening to the discussion including the open forum and I took this photo :-). Here is my Rapporteur's Report of our panel, "Dealing with Economic Nationalism".

Good audience in the EFN panel discussion today.
All photos today from Miklos and Pett.

I will post here the Rapporteur's Report for the EFN panel 2014 once I get a copy. Meanwhile, globalization and inequality was also discussed in one of the threads in the facebook group, Government and Taxes, Liberty and Responsibility. I wrote the following:

* Inequality is inevitable. And a good thing too, it penalizes laziness and irresponsibility with poverty, while it rewards hard work and efficiency with prosperity. Nature-made catastrophe like volcanic eruption, strong earthquake, heavy flash flood, which damage or wipe out important investments like a farm, house, factory, etc., there are various layers of safety nets and solidarity coming, like donations (public and private), reconstruction of public facilities like roads, bridges, drainage. So that nature-created poverty can be quickly addressed.

* The degree of inequality around the world has increased but the material condition of the poor has also increased or improved. One proof:  Before, the Filipino poor were riding bicycles or carabaos or horses. Now the poor ride motorcycles. Before, the Filipino poor or even middle class could not afford to have cell phones. Now the poor have smart phones, some even own tablets. Another proof is rising life expectancy. Before, Filipinos on average die at age 50, 60 years old. As of 2009 or 2010, the average life expectancy of Filipinos was 69 years old (67 for males, 72 for females). By now I think average life expectancy is already 70.

* If there is no inequality, people in many countries will be equal... equally poor and destitute. ala N. Korea.

* One chart from John Stossel here. Global poverty in absolute number is high because global population is rising. But global poverty (then defined as earning $1 a day/person) as percent of global population is declining. But the UN and the multilaterals keep saying "poverty remains high and alarming", they changed the definition of poverty to earning $2 a day/person.

* Governments and the multilaterals are dishonest in discussing poverty. If they want more money from taxpayers, they say "poverty remains high, very alarming", things they were saying 6 decades ago or more. When they want to brag about their "accomplishments", they say that "poverty has declined but there are challenges". 

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See also: 
EFN Asia 22: Dealing with Economic Nationalism, Jeju Forum, June 03, 2013 
EFN Asia 23: More Photos at Jeju Forum, June 06, 2013
EFN Asia 24: Jim Rogers talk at Jeju Forum, June 10, 2013

EFN Asia 33: Bibek Debroy on Property Rights, January 23, 2014 

EFN Asia 34: Chatib Basri on Subsidy and Protectionism for the Poor, January 25, 2014 
EFN Asia 35: Rainer Adam and Economic Freedom in Asia, March 11, 2014

EFN Asia 36: Pett J and Secretariat Work, April 25, 2014

EFN Asia 36: Pett J and Secretariat Work

I have written a number of papers about the Economic Freedom Network (EFN) Asia, especially its annual conferences in different cities in Asia. Such big regional event for many independent think tanks and academics is made possible not only by the financial support of the Friedrich Naumann Foundation for Freedom (FNF) but also by the hard work put by the EFN Secretariat staff.

The head of the Secretariat is the Regional Program Officer for EFN, Pett Jarupaiboon. Photo, Pett talking to Fred McMahon of Fraser Institute (Canada) during the EFN 2013 Conference in Bangkok last year.

Pett joined the FNF in 2009 I think, taking the place of Gorawut Numnak. I met Pett first time in 2010 during the EFN Confernce in Jakarta.

The guy is your typical silent, always smiling but very hard working person. Aside from being the regional officer for EFN, he is also the regional officer for Human Rights campaign of the FNF.

Last year, EFN participated for the first time in the Jeju Forum for Peace and Prosperity, a big annual international conference held in Jeju island, S. Korea  Photo in one of the three dinners in the conference, the EFN video was shown on the stage. Barun Mitra, Pett, me.

EFN sponsored one panel in the 2 1/2 days conference about the dangers of economic nationalism and protectionism. Pett worked hard for that event, in coordination with FNF Seoul office, especially with Ms. Sung eun Lim, another hard working staff of the foundation.

At Jeju conference, from left: Sung eun Lim, me, Ms. Kim, Wan Saiful Wan Jan (Malaysia), Lars Richter (Country Director for S. Korea), Pham Chi Lan (Vietnam), Feng Xingyuan (China), Tricia Yeoh (Malaysia), Pett, Barun Mitra (India), Miklos Romandy (Austria), Liu Junning (China). Not in the photo with our group was Sam Raimsey (Cambodia).

EFN 2013 Conference in Bangkok, farewell dinner. From left: Mao Shoulong (China), Barun, Rainer Adam (outgoing FNF Regional Director for Southeast and East Asia), Xingyuan, Wan Saiful, Pett, Tricia, Sung eun, me.

Bangkok conference end of Day 2 group picture. Some participants who attended only Day 1, or stayed only until half day of Day 2, were not in this photo. Really good work Pett, along with your officemates in Bangkok regional office like Julianne, Poraporn, Wimonpug, others.

It was Pett's birthday yesterday. Happy birthday again Pett. See you around.

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See also: 

EFN Asia 32: Day 2 of Conference 2013 in Bangkok, November 09, 2013  

EFN Asia 33: Bibek Debroy on Property Rights, January 23, 2014 

EFN Asia 33: Chatib Basri on Subsidy and Protectionism for the Poor, January 25, 2014 
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.

Freedom Flame Awards 2013

Last Sunday night, November 10, I was one of the 14 individuals who were given the “Freedom Flame Awards” by the Friedrich Naumann Foundation for Freedom (FNF) Philippine office. It was a great honor for me. The citation why I was given the award was for “for his staunch advocacy for economic freedom and for his continuous support to the work of FNF.”

Thank you very much to Jules Maaten, Country Director of FNF for the Philippines, for his trust and recognition of my modest contribution to spreading the ideas of economic freedom, rule of law and limited government in this part of the planet.

As an awardee, I was allowed to bring a few guests. I brought my wife Ella, and Dr. Epictetus Patalinghug, left, MG Thinkers adviser, also one of our wedding godfathers. Dr. Peter Lee U of the University of Asia Pacific (UAP) and the Philippine Economic Society (PES) was also there.

Venue was San Diego Gardens, Intramuros, Manila. The event was attended by a number of international delegates, like Dr Jürgen Morlok, Chairman of the Board of Trustees of FNF, Hans van Baalen, President of the Liberal International (LI), Rainer Adam, FNF Regional Director for East and Southeast Asia, Siegfried Herzog, FNF Regional Director for South Asia, some officials of the Alliance of Liberals and Democrats in Europe (ALDE), Council of Asian Liberals and Democrats (CALD), FNF Potsdam headquarters and FNF country directors for some Asian countries.

I was seated in the front table with Cong. Kit Belmonte, singer Noel Cabangon, Atty. Arpee Santiago of the Ateneo Human Rights Center, wife of Chuchoy Medina, Jules and his family.

The "Freedom Speech" was given by Senator Bam Aquino. He talked about empowering the Filipinos towards more self reliance.

The 13 other awardees were:

1. Congw. Henedina Abad, Batanes Representative, for her steadfast support for innovative liberal initiatives.

2. Senator Paolo Benigno “Bam” Aquino IV, for his inspiring leadership that encourages communities especially the youth to follow the straight path

3. Feliciano Belmonte, House Speaker Jr, for the passage of landmark reform laws like the RH Bill during the 15th Congress. He was not able to come, his nephew, Cong. Kit Belmonte, came to receive the award. Kit is also a friend way back in UP Diliman in the mid-80s.

4. Ma. Isabelle Climaco, Mayor of Zamboanga City, for her leadership in handling the recent security crisis in Mindanao

5. Patricia Evangelista, Rappler multimedia reporter, for her "insightful video documentaries and news reporting on issues on freedom and human rights."

EFN Asia 32: Day 2 of Conference 2013 in Bangkok

* This is my article yesterday at the EFN website. Karthik Chandra of the Foundation for Democratic Reforms and Lok Satta (People Power), India, helped in filling up some gaps in my original article. Thanks Karthik.
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Day 2 of the Economic Freedom Network (EFN) Asia 2013 Conference started with a presentation by Fred McMahon of Fraser Institute in Canada, of the results of the Economic Freedom of the World (EFW) 2013 Report. Before presenting the numbers, he reiterated the definition of “economic freedom” as fundamental rights. Without these basic rights, no political or civil freedom can prosper.

The results of the latest EFW report showed once again, that more freedom means, more growth, less poverty. It also means less corruption, higher life satisfaction, life expectancy, more prosperity. For Asia, Economic freedom has been following global average or trend. The full EFW Report can be accessed at  http://www.freetheworld.com , http://fraserinstitute.org .

FNF Regional Director for SouthEast and East Asia, Rainer Adam discussed the work of FNF in Asia, then explained that they invited some Thai incumbent government officials, they all declined, so they invited the opposition, former Thai Prime Minister Abhisit Vejajiva. (Photo from left: Rainer, Abhisit, Fred.) 

Hon. Vejajiva said that Thailand’s high growth in past decades was due to dynamic private sector subject to competition. Government’s monetary policy helped without compromising inflationary pressure. The administration is buying Thai farmers’ rice at 50 percent higher than market rice. The farmers are richer but public finance suffered, also global rice prices rose.

He added that low wages, natural resources extraction can not sustain growth. Needed are more innovations to escape middle income trap. It is not how small or how big the government is, but to properly identify the sectors that government should come and support, and which sectors the government should get out. When markets are distorted, corruption goes up.

Economic freedom can be improved, Abhisit added, by identifying sectors where government can engage and solve inequality. Populist policies and authoritarian government feed each other, but .they can be tackled with democratic and good Governance. Thailand is successful In attracting various car producers and has no national car. An economy improves its competitiveness by gradual opening up.

Discussions in Panel 4 followed with 6 speakers from 6 countries, to talk about different experiences in dealing with middle income trap. Adinda Muchtar from the Indonesian Institute moderated the panel. Photo below, from left: Adinda (Indonesia), Wan saiful (Malaysia), Xingyuan (China), Set (Myanmar), Nguyen (Vietnam), Barun (India), and Hiroshi (Japan).

EFN Asia 31. Friends in the Asian Free Market Movement

* Note: this is a revised and expanded version of my posting last November 04. I added two photos, me and Barun, 2004 vs. 2013. Also expanded some stories.

During the Economic Freedom Network (EFN) Asia 2013 conference in Bangkok last October 21-22, two friends from the Japanese for Tax Reforms (JTR) came, Marc Abela and Hiroshi Yoshida. A third and young participant from JTR joined them.

Hiroshi is a long time friend since 2005, during the Atlas-FNF round table discussion on Hayek's “The Constitution of Liberty”. Hiroshi came with Mr. You then, the President of JTR. After that one-day event, the EFN Asia 2005 conference started, same hotel in Phuket, Thailand.  

It was my first time to meet Marc, who has been a friend since several years ago in facebook and ARBM Phuket yahoogroups.  I had a debate with him before re anarchy vs monarchy, friendly debate. I didn’t know that he’s a cool, always smiling guy.

Marc is also the convenor of the Mises Study Group in Tokyo. He's Canadian but has been working in Japan for about two decades now. And good news, he's planning to help organize a regional or international forum of free marketers in Tokyo soon.

Our photo, with (from left) Yo Kwong, formerly VP for Institute Relations of Atlas, Mr. You and Hiroshi Yoshida of JTR. During the Atlas Liberty Forum in Atlanta, Georgia, May 2008.

I miss Jo, really cool, warm and friendly lady. Last time I saw her was in November 2009, during the Atlas celebration of 20 years collapse of the Berlin Wall. She raised the funds for my trips during Atlas events in the US. She has resigned from Atlas in 2010.

In China, I have several friends there, from the Unirule Institute of Economics and CIPA in Beijing. Like Feng Xingyuan, Mao Shoulong, Liu Junning, Zhao Xu, others.

In India, many friends there too but the more prominent ones are Barun Mitra and Mohit Satyanand of the Liberty Institute in Delhi. Then Parth Shah of the Center for Civil Society (CCS), Bibek Debroy.

From S. Korea, great and cool friend, Chung-ho Kim, of the newly-formed Freedom Factory Ltd., a new think tank, came. He teaches Economics at Yonsei Univ. in Seoul. He used to be the President of the Center for Free Enterprise (CFE).

Photo, LRI Reading Club Salon 2013, October 19, Hong Kong.

After the farewell dinner of the Reading Salon, I have a photo with Andrew Work, the first Exec Director of the  Lion Rock Institute. Andrew and I were friends way back in 2004, first met him at the Mackinac Center in Michigan, leadership conference with Larry Reed. I was sponsored by Atlas then, along with Ellen Cain of FEF. Parth Shah and his wife, Mana Shah was also in that Mackinac conference.

Then we went to Chicago for the Heritage conference, then the Atlas conference.

First time I met Barun Mitra, April 2004 -- in my hotel room. We were roommates then. I did not have any idea who Barun Mitra was, only at the Atlas conference did I realize that he was a giant in the Asian free market movement. He has been in the free market movement for 2+ decades already, while I was in the international movement for only 1 month then.

So Andrew and Barun were among my early friends in the free market movement. I met them again that year in Hong Kong during the EFN Asia 2004 Conference. We are still around until now. The way we manage our life, it seems we are stuck in this passion until we grow old, for the long haul :-)

Now compare our faces, October 2013, at the Hong Kong airport. I told Madhu, Barun's wife and my friend in facebook, that I saw him 3x in 3 countries this year, she laughed and said all she saw were photos.

Barun and Xingyuan also have their own photo. In Asia, perhaps the oldest or the pioneer in the movement is Barun Mitra. Followed perhaps by Xingyuan, who started working with FNF Beijing under Rainer Adam, for about 7 years in the 90s. So Barun has been around for 3+ decades, Xingyuan for 2+ decades, me and Andrew and Simon Lee, LRI co-founder, for almost 1 decade.

I know that Parth Shah, Bibek Debroy, have been around ahead of us, maybe contemporary with Xingyuan. I miss Mohit Satyanand, a tall guy, frank and no-nonsense speaker and moderator. He was a panel moderator of EFN conferences from 2004-2006. I also saw him in 2005 during the IPN’s “Global Development Network” conference in London.

I met Feng and Barun 3x this year in 3 countries. First in S. Korea last May, in Seoul then Jeju, for the Jeju Forum for Peace and Prosperity where EFN Asia was a panel sponsor. Then I met them in Hong Kong last Oct 18-19, for the Reading Club Salon 2013 by the Lion Rock Institute. Then met them again in Bangkok, for the 3rd time this year.

Photo, Barun, me, Xingyuan, and Shoulong, inside the taxi from our hotel in HK to the HK Airport, to take our flight to Bangkok.

Wan Saiful Wan Jan is "new" in the Asia free market movement because he just moved in about 3 or 4 years ago from London where he worked for almost 18 years and was involved with the Conservative movement there. But IDEAS is the biggest, most dynamic free market think tank in the whole ASEAN. Or perhaps comparable in size with Freedom Institute in Jakarta, though I think IDEAS is more known globally than Freedom Institute.

I saw Wan 3x this year too. First in Korea along with Barun and Xingyuan, then in Manila two months ago when he attended a conference at De La Salle University (DLSU) and I dragged him to give an evening talk at my rotary club, where 4 other free marketers here in Manila came. Then met him again in Bangkok.

I am glad that Tricia Yeoh has migrated to IDEAS too, from Rakyat Institut. Tricia is a very articulate and intelligent lady, so IDEAS is being packed with more brains. Young and dynamic brains.

Another good friend from Pakistan is Zubair Malik whom I met in Hong Kong during the EFN Asia 2004 Conference. I would see him in all EFN conferences that I have attended. Zubair is also the President of the Pakistan Chamber of Commerce and Industry, elected last year. He travels a lot internationally, also within Pakistan, 

Another good friend from Pakistan is Khalil Ahmad of the Alternate Solutions Institute, a free market think tank based in Lahore. After the EFN 2006 conference in KL, I did not see him in other EFN conferences. Last time I saw him was in 2010 in Sydney, during the 4th Pacific Rim Policy Exchange sponsored by the Americans for Tax Reforms (ATR), PRA, IPA and IPN. 

There are many other friends from Asia that I did not mention above. I did mention about them in my previous articles on EFN Asia.

Meanwhile, I will see Rainer Adam and other key FNF officials next week here in Manila. FNF has lots of big, high profile events from November 7 to 11. I will join in some of these, including the Freedom Run on Nov. 10 morning, then the Freedom Awards that evening.

FNF has done a great job in spreading freedom in Asia. For many of us in the movement, if we look back a decade or so from now, FNF will appear as the great partner to many of us.  Also the LRI. Thanks again to Peter Wong, Exec. Director of LRI, for inviting me to the two Reading Club Salon of LRI, last year and this year.

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See also:

EFN Asia 27: Escaping Middle Income Trap via Economic Freedom, October 08, 2013

Business 360 11: Avoiding Middle Income Trap, September 19, 2013 

EFN Asia 28: Program of the 2013 Conference in Bangkok, October 17, 2013 

EFN Asia 29: Speakers in Day 1, Conference 2013 in Bangkok, October 21, 2013 

EFN Asia 30: Conference 2013, Day 1, October 23, 2013

EFN Asia 14: Conference 2012 Resolution on Populism

It is an annual tradition that at the end of each Economic Freedom Network (EFN) Asia Annual Conferences, participants produce a conference resolution -- short, one page, clear and direct -- that summarizes and concludes the two-days activity. I am posting the conference resolutions last year (theme: Competition: Engine for Prosperity, October 11-12, 2011, Kuala Lumpur) and this year (theme: How Welfare Populism Destroys Prosperity, November 6-7, 2012, Hong Kong).

EFN Conference 2011 

Statement on Competition and Prosperity

Preamble

Competition is an essential engine for prosperity. To prosper, all nations should encourage and nurture competition. Competition encourages innovation and creativity.

It motivates producers to make the best offers to consumers, therefore creating lower prices, higher quality products and better services.

The Role of Government

The primary role of the government is to enforce the rule of law, provide impartial judiciary, protect property rights and individual freedom.

Competition is the best regulator; therefore, the government should foster competition rather than restrict it.

Competition in Public Service Delivery

The people will benefit more if the government does not monopolize the delivery of public services.

Competition can be introduced and fostered in the major public services such as education, healthcare, transport, communications, and utilities by diversifying the providers through various form of private participation.

Competition, Economic Freedom and Prosperity

Free market economy is necessary for progress. Empirical evidence shows that open economies are more prosperous.

Competition is a key element in a free market economy.
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EFN Conference 2012 

Statement on Liberal Views on Populism

We the liberals believe that populism is the promise of state-mandated, unsustainable benefits to the broader population without consideration of the long-term costs and benefits. It relies on highly emotive statements. In fact, populism is counterproductive to general well-being and progress, as illustrated by the economic decline of the many countries that have pursued populist agendas.

We are concerned that governments in Asia are turning away from the policies which have been demonstrated to promote prosperity in many parts of the world.

We are confident that people will reject populist policies once they understand the true costs associated with them. 

Those costs include an increasing dependency on the state, weakening the rule of law, propertyrights and individual freedom. Populism also reduces the ability of individuals and local communities to make their own decisions, and undermines the competitiveness of businesses.

Recent moves in Asia to subsidise food and fuel, and to transfer cash are all examples of populist policies that have done more harm than good.

We are confident that if Asia commits itself to liberal values such as property rights and the rule of law, the region will prosper.

We commit to:

* Provide alternative liberal solutions to the real problems that give rise to populism, and educate about the benefits of liberal policies, using positive language and examples.

* Provide public support to politicians, political parties, business groups and other stakeholders that support liberal solutions.

* Expose the high costs in terms of money and disastrous end results of such policies

* Educate politicians and students

* Engage with the media to educate the public more widely

* Engage and create strategic alliances with civil society

* Meet on a regular basis to strengthen our network. 

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More photos during the HK conference.

EFN Asia 13: Welfare Populism and Poverty

* This is my article yesterday in the online magazine,
http://thelobbyist.biz/index.php/perspectives/less-government/item/122-welfare-populism-and-poverty
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State-mandated welfare populism or universal welfare, is creating more dependency and mendicancy rather than independence and self reliance. It is encouraging more corruption rather than curing it, expanding the spend-tax-borrow policy, bloating the public debt and the economic uncertainty that comes with it. Therefore, politicians and the public should avoid welfarism trap and steer government to focus on promulgating the rule of law, protecting property rights, making social and economic rules apply equally to all and not making favoritism and cronyism.

This is the main message in the two-days Economic Freedom Network (EFN) Asia 2012 conference last November 6-7, 2012, here at Crowne Plaza East Kowloon, Hong Kong. The event that attracted more than a hundred international and local participants was sponsored by the Friedrich Naumann Foundation for Freedom (FNF) and co-sponsored by the Lion Rock Institute (LRI), Hong Kong’s first and only free market institute. 

Among the speakers in the two-days conference were Wolf Dieter Zumpfort, Deputy Chairman of the FNF Board of Directors in Germany;  Abhisit Vejjajiva, former Thai Prime Minister, Rainer Adam, Regional Director of the FNF Southeast and East Asia, Bill Stacey, Chairman of LRI, and John Tsang, Finance Secretary of Hong Kong.

The various speakers have reiterated the importance of setting markets free – rich and poor, men and women, young and old, to have access to various employers and consumers of their skills and talent, products and services, in a competitive and non-monopolistic or non-oligopolistic environment. The role of government is to protect the property rights of the people, that the fruits of their hard work and efficiency, are protected and not forcibly taken away from them by bullies and cheats. This necessitates upholding the rule of law, that regulatons apply to all, exempts no one and no one can grant exemption from the limitations made by the law.

Thus, the law against killing, stealing, kidnapping, land grabbing, extortion and other criminal activities should apply and be strictly implemented. This equality before the law will act as the main incentive for people to become more industrious, responsible and self reliant.

Forcing equality in society via populist and welfarist policies – like high food subsidy, fuel subsidy, housing subsidy, healthcare subsidy, cash transfers – would tend to encourage dependency and mendicancy. Forcing equality of social outcome among the people regardless of their work and efficiency or lack of them, will distort markets, wreak havoc on the fiscal condition of governments, as what is happening now in many welfare states in Europe like Greece, Spain, Portugal and Italy.

Even in Hong Kong, according to local speakers, the government is treading slowly on more welfarist policies that were absent when this free trade economy was developing and has attained a highly developed economic status.

The European speakers in the conference also recognized that Hong Kong's generally free market and globalized economy coupled with the rule of law, is mainly responsible for its economic prosperity while Germany and many European economies are struggling with welfarism trap, massive unemployment, and the need to cut the expensive, huge debt generator welfare programs to help stabilize their economy.

Welfarism is being introduced more liberally in many Asian governments and economies recently. In Thailand for instance, they have rice subsidy, free computer tablets for first graders, and subsidy for first time car buyers. The latter alone cost the government $1 billion and the traffic has worsened further.
In Indonesia, fuel subsidy has further bloated the public debt. In China, there are calls for school free lunch, free school bus.

In S. Korea, there are free child care and universal school meal policy. If these and other new welfare programs are adopted, public spending will rise by around $520 billion more, which will need either new taxes and/or more borrowings. Existing welfare programs alone is projected to contribute to government spending of 45 percent of GDP and the public debt is projected to reach 216 percent of GDP.

In the Philippines, there are various welfare programs supposedly to help “fight poverty”. These include education and books for the poor, healthcare and medicines for the poor, housing and relocation for the poor, credit and tractors for the poor, and many of these do not seem to work as high poverty still persists, so they invented new welfare programs like cash transfer for the poor, and soon, pills and condoms for the poor.

In his keynote address, HK’s Finance Secretary John Tsang said that they are conscious of observing fiscal prudence for three reasons: it is in their constitution, they are aware of the huge public debt problem of many welfare economies, and it is part of their value system of not spending more than one’s income.

Wall Street Journal editor for Asia business, Joseph Sternberg, observed that Mr. Tsang has several new taxes on residential real estate transactions, like a 15 percent tax on foreigners real estate buyers, an increase in “special stamp duty”, and the possibility of the HK government imposing a capital gains tax on property soon.

All new taxes or hike in the rates of existing taxes are meant to expand government revenue to finance in part new welfare spending or expand coverage of existing welfare programs. Politicians, legislators and other policymakers cannot bind themselves and their successors. The itch to intervene, to subsidize and over-spend, is there, resulting in distortion in many sectors of the economy, high public indebtedness that results in high interest payment and siphons resources away from otherwise productive spending.

Rule of law is undermined when government mixes with businesses. Cronyism and nepotism is not far off when government becomes the regulator and industry player at the same time, even in the guise of protecting the poor from “market manipulation by private enterprises” demagoguery.

There were many other important points discussed during the conference. As the Philippine elections is coming closer, just six months away, reminding both the politicians and the voters that welfare populism is a costly policy that can create more dependency rather than independence, is an important task for concerned individuals and civil society leaders.

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Meanwhile, here are  more photos during the conference.
Below, the two guys whom I would consider as the "pillars" of the EFN Asia conference, Dr. Rainer Adam (left) and Dr. Wolf Dieter Zumpfort (right). Without their commitment to hold an annual EFN Asia conference, the network could have been more loose and have no regular regional and international networking.

Then my two photos from Xingyuan Feng's camera. Xingyuan has been a friend since 2004 and I see him every year in various regional and international conferences. Another friend in the picture is Shoulong Mao, another Chinese academic and free marketer, President of the Cathay Institute for Public Affairs (CIPA).

EFN Asia 12: Day 1 of Conference 2012

Day 1 yesterday of the 2012 Economic Freedom Network (EFN) Asia conference here at Crowne Plaza East Kowloon. It is sponsored by the Friedrich Naumann Foundation for Freedom (FNF) and co-sponsored by the Lion Rock Institute (LRI), Hong Kong’s first and only free market institute. 

There were 100+ participants, mostly international (Asia, US, Canada, Germany, Spain...). Many locals too, mostly friends of LRI.

Key speakers yesterday morning, from left: Wolf Zumpfort, Deputy Chairman, FNF Board of Directors, Germany;  Abhisit Vejjajiva, former Thai Prime Minister, Rainer Adam, Regional Director, FNF Southeast and East Asia, and Andrew Work, LRI co-founder. He took the place of  Bill Stacey, Chairman of LRI, who came late by a few minutes.

In his opening message, Bill reiterated the importance of free market, rule of law and property rights, in countering the mass appeal of populism which has long term negative impact on the economy. He said that the HK government is treading slowly on more welfarism.

Wolf cited HK's generally free market and globalized economy for its economic prosperity while Germany and many European economies are struggling with welfarism trap, massive unemployment, and the need to cut the expensive, huge debt generator welfare programs to help stabilize their economy.

Rainer reiterated a number of points made by Bill, and praised former Thai PM Abhisit for not bowing to heavy populism in Thailand during his term, that he cut certain subsidies and instill fiscal restraint and responsibility, only to be reversed by the succeeding populist administration in Thailand.

Abhisit discussed many points in his keynote speech. Among them:
* Populism has made the poor become even more dependent on the government.
* Populism breeds high opportunity for corruption, like the rice subsidy corruption.
* It can lead to more social conflict as a result of those continuing corruption.
* Decline of democracy as populism very often leads to authoritarianism and totalitarianism.
* Foreign intervention becomes inevitable later, like the heavily indebted welfarist economies who must be bailed out by other countries and the multilaterals.
* Decline in competitiveness and possible collapse of the economy as free market competition is often shelved.
* But free market has problem with social and economic distribution, thus the need for government to provide some safety nets to those highly vulnerable sectors and households.
* Politicians should be responsible, balance populism with proper education of the voters, avoid quick fixes and welfarism trap.

3. Keynote Address, former Thailand PM , “How Welfare Populism Destroys Prosperity”

The next round of speakers were Sec. Neric Acosta, the Presidential Adviser for Environmental Protection, Philippines, and Sec.Gen. of the Council of Asian Liberals and Democrats (CALD), and Bibek Debroy from India. Bibek was the sudden replacement of Parth Shah, President of the Center for Civil Society (CCS), India, who failed to come due to  problem with his flight from Delhi. Below is part of Neric's presentation.

Neric emphasized the importance of the rule of law, avoid populism despite its temptation to politicians. Bibek said that contrary to many people's belief, politicians in general are not myopic as they balance populist demand by the voters and managing public expenditures.

EFN Asia 11: Populism vs. Economic Freedom, the HK Conference

Imagine a situation like this: majority of the people and voters in a society demand that healthcare, from medicines to hospitalization, is a right and an entitlement; that education, from books and tuition payment from elementary to tertiary to graduate studies, is a right and an entitlement; that housing and credit, is a right and an entitlement; that jobs and high minimum wage, is a right and an entitlement.

This means that even if a person has no work, or work a little then complain a lot, or simply does not want to work, he/she and family members should be entitled to all the above services to be provided by the government for free or at heavily subsidized rate. Because life is a right, and the main purpose of government is to ensure that all people, young and old, men and women, rich and poor, should have quality life in this planet.

That is pure populism. The popular and majority desire of the public. And that is dangerous. When majority of the people simply want more rights and entitlements, and they do not think that they also have responsibilities and obligations to finance and sustain those high expectations of rights and entitlements, then society can descend to socialism and large-scale confiscation of the income and savings of people who work harder and more efficiently than the rest. The result is not economic and political freedom but politics of envy and large-scale coercion and persecution of the minority who do not agree with such social arrangement.

This is a very timely subject as many countries and economies worldwide are plunging into heavy public debt problems as a result of decades upon decades of giving away so many subsidies and freebies to their citizens. Even if local revenues are not sufficient, public spending for welfare and other populist subsidy programs kept spiraling, and the gap between low revenues and high spending is financed by endless borrowings, year in and year out.

So the Economic Freedom Network (EFN) Asia (www.efnasia.org) will take this deep and complex issue in its annual conference this year to be held in Hong Kong from November 6 to 8, 2012. The theme of this big activity is How Welfare Populism Destroys Prosperity: The Populist Challenge to Economic Freedom.

The main sponsors of this important event are the Friedrich Naumann Foundation for Liberty (FNF, www.fnst.org) and the Lion Rock Institute (LRI, www.lionrockinstitute.org), a Hong Kong-based free market think tank.

The conference was premised on this concept:

... Populism is more emotional than factual, it is more hopeful than real. Populist politicians use fear, uncertainty, overwhelming complications, and anti-establishment attitude to generate mass appeal, and ultimately, to get into power.

In Asia... political leaders who want to challenge the status quo present themselves as champions of the masses.  They employ populism primarily as a political strategy to gain popular vote by offering quick fixes and by applying simple solutions to complex problems. Through deficit spending and subsidies they shower the voters with benefits. Ultimately this creates unsustainable solutions. It is leaving the people far worse off than before because ultimately someone has to pay for these policies... Populist policies are reducing the freedom to trade, tighten economic regulations, and increase the size of government... 

Among the speakers in the event are:

First row: 1. Bill Stacey, Chairman of LRI
2. Dr. Wolf-Dieter Zumpfort, Deputy Chairman of the FNF Board
Second row: 3. Dr. Reiner Adam, Regional Director of FNF Southeast and East Asia
4. Abhisit Vejjajiva, Leader of Democrat Party and Former PM of Thailand
Third row: 5. Parth Shah, President of the Center for Civil Society (India)
6. Neric Acosta, Presidential Adviser on Environmental Concerns, Philippines, and Sec-Gen of CALD
7. Barun Mitra, Director of Liberty Institute (India)
Fourth row: 8. Fred McMahon, VP of Fraser Institute, which conducts the annual Economic Freedom of the World (EFW) index, and
9. John Tsang, Financial Secretary of Hong Kong

See the tentative program and speakers here,
http://www.scribd.com/doc/105195496/Tentative-EFN-Asia-Conference-2012-Programme

I was invited by the organizers to become one of the group hosts in the 5 Groups where participants will discuss "What can advocates of free markets do to counter populism?". I immediately agreed so I will be going to HK this November.

I have discussed below in Fat-Free Econ 23: Penang Workshop on Markets in Healthcare about the importance of linking always, rights and responsibilities, entitlements and obligations. For me this is one effective way by which believers of free market and individual freedom, rule of law and property rights protection, can combat populism and their usual fiscal agenda of spend-spend-spend, borrow-borrow-borrow, tax-tax-tax philosophy.

Will give more updates here as the conference will draw nearer.

* A minor problem: my passport will expire in mid-April 2013, but since one cannot travel if the passport will expire within six months, a Philippine passport with five years life has a real life of only four and half  (4 1/2) years, I will have to get a new passport. Which means I will have to go through another episode of DFA bureaucracy sooner than necessary, take a half day off (at least) from work and pay P950 (regular 15 working days processing) or P1,250 ("express" 7 working days). In many countries, a passport is valid for 10 years, not just five as in the Philippines. Short passport life, more payment to the bureaucracy, they help reduce individual freedom in global mobility.
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See also:
EFN-Asia 6: Conference in Kuala Lumpur, Oct 10-12, October 09, 2011

EFN Asia 7: Conf, Dinner at German Ambassador, KL, October 11, 2011

EFN Asia 8: KL Conference, Day 1, October 12, 2011

EFN Asia 9: Panels on Education, Health, Transpo and Telecomm, October 14, 2011

EFN Asia 10: Conference November 2012 in Hong Kong, June 19, 2012