Wednesday, May 22, 2013

Socialized Healthcare 14: Over-extending Government Role in Health

There is a new article from the New England Journal of Medicine (www.nejm.org) by Thomas Frieden, MD, MPH, Director of the Centers for Disease Control and Prevention, Atlanta, USA.


It is a good article, except that the role of government in public health is over-extended and over-rated. For instance, on top of the old or long-standing role of government, there are more, newer roles. Like new laws and prohibitions where people can smoke and where they cannot. Mandating alcohol ignition interlock devices in cars, reduction of sodium in package foods -- with penalties and fines for violations. This is expanding government agencies and bureaucracies (expanding the taxes and fees to support them, their salaries, offices, training and seminars, pension, etc.). 


It would have been more palatable if government will hire more people to over-regulate, over-spy, over-control and over-penalize murderers, rapists, thieves, kidnappers and abductors, corrupt officials and other criminals. But to spy on restaurants because their foods are not properly labelled with ingredients, spy on people because they smoke in a restaurant or a private office, spy on car manufacturers because their cars do not have alcohol ignition interlock system, it's simply lousy and OA.

Societies and nations are composed first and foremost, of individuals -- parents, siblings, clans and relatives, friends and classmates, officemates and professional network, etc. Meaning civil society. Then there are corporate entities -- restaurants, hospitals, drugstores, drug manufacturers, food and drug importers, etc. Then government, local, national or multilateral.

In that article, there is no mention of civil society and corporate sectors's role in promoting public health. Almost everything is government role. 

In health promotion for instance, do we need government to remind people, children especially, that washing hands well before eating is necessary? That doing prohibited drugs, too much alcohol or tobacco, are not good? That cleaning houses and surrounding so that rats, cockroach, mosquitoes, other insects and pests won't stay and expand?  I don't think so, These simple health promotion knowledge are mainly personal, parental and civil society responsibility, secondarily or even not government responsibility. 

The big question remains, to determine which are mainly government responsibility, and which ones are civil society and corporate responsibilities.

In discouraging high alcohol use for instance, even if the excise tax on beer, whiskey, etc. are 10x or 100x their current levels, people will still drink, They will consume products that are made by locals and neighbors, not made by corporations -- like lambanog, tuba, tapuy/rice wine, etc. Those that are "hard to tax" by the government Some people simply derive pleasure from drinking and partying, even if it means little or zero savings for them, and poor health. Government or other people cannot nanny on everyone all the time and in all places.

If government will focus on promulgating the rule of law -- the law against selling fake and substandard medicines, against dangerous or expired food and drinks, against stabbing and shooting by gangs, whether drunk or sober -- this alone will have great positive impact on improving public health. 

Government should focus on controlling infectious and communicable diseases - sickness that can be passed on from one person to another even if people are extra careful and healthy about their lifestyle as those virus, bacteria, fungi, other microorganisms are more cruel and more shrewd than alcohol and tobacco molecules. This alone, too, will have great positive result in promoting public health.

In the absence of making a clear distinction between civil society responsibility with government responsibility, we can end up a socialist society soon without realizing it, where everything is run and micro-managed by the government.

A friend, Fe Remotigue of the National Pharmaceutiful Foundation (NPF), an NGO, informed me that during the META Discussion Series at the AIM in Makati last Friday, May 17, META Philippines Chairman Obet Pagdanganan challenged those who were seeking legal agenda to “act and not wait to be regulated”. And Food and Drugs Administration (FDA) Director-General, Dr. Kenneth Hartigan-Go said, “please, am asking you what you want me to do not what I cannot do”.  

"Act and not wait to be regulated" is a good advice actually. All players like industry associations, professional associations, NGOs, must have their own set of self-regulation, their own system of reward and punishment. For instance, PHAP has its own Code of Ethics, there are penalties for member-companies for violating the Code. PCPI is also working on its own Code of Ethics for member-companies, these are good initiatives. And PMA, PPhA, I think they have their own code of ethics or by-laws to avoid certain "conflict of interest".

That is the essence of civil society. Self regulation, act like mature and civilized people, there are consequences to our action and inaction. Very often we do not need government to tell and regulate us what acts are good and which ones are not good. Like we do not need government to tell us that over-eating, over-drinking, over-smoking, are not good for our body. Irresponsible people should suffer the consequences of abusing their own body, they should not blame somebody else nor ask that the rest of society should bail them out from their messy and costly healthcare. But there are overall or over-arching government laws that must be implemented -- the laws against stealing, killing, abduction, land grabbing, physical harm, corruption in government, and other criminal acts.

"What you want me to do and not what I cannot do." That is another good advice and request from a government regulator. When Doc KHG was newly appointed at the FDA, we have a few emails and I suggested to him that FDA should invest in having a strong legal team. That the best regulatory work that FDA can do is to prosecute and penalize those who violate existing laws -- like those selling fake and substandard medicines, those that sell adulterated, expired, harmful food and drinks. FDA will not do store by store inspections everyday, 7 days a week, for it is simply impossible to do that. But if FDA can send violators to jails and announce the list of those violators, that alone will sow fear in the hearts and minds of potential violators. Self-regulation, to stand and be fully accountable for the quality of their products and services, will be their main protection against FDA's legal team.

Promulgation of the rule of law, of few laws that apply to all, no one is exempted and no one can grant exemption, is the single most important function of government. Welfarism and endless subsidies are a secondary or tertiary function of government. Of what use to the poor is welfarism, that they get free education, free hospitalization, free medicines, etc. but their houses can also be easily ransacked, or their piece of land can be stolen and re-titled by some shrewd lawyers or real estate developers or politicians? Or their kids can also be freely abducted and raped or murdered by some gangs and politically influential people?

The food sector, clothing and other sectors, are good "models" for the health sector. There is not a single government restaurant or carinderia, not a single government supermarket or talipapa, all are provided by private enterprises, and people are eating. "Universal food" is generally assured. Likewise there are no government clothing and shoes corporation, and yet people have clothes and pants on their body, have shoes or slippers on their feet.

Whereas in healthcare, there are tens of thousands of government barangay health centers, dozens of government hospitals, thousands of DOH-sponsored botikas or barangay drugstores, there is drug price control policy, mandatory drug discounts for senior citizens, a government health insurance monopoly, and so on, and health problems are expanding, not declining.

Which means that for many social concerns, government should step back, and allow civil society and self-regulation to take over. And addressing the NCDs via self-regulation by individuals themselves, via competition by many private healthcare providers, is one aspect that government should step back. Addressing infectious diseases for adults, and children's diseases, communicable or non-communicable alike, is one big challenge for the government already that will require huge resources.
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See also:
Socialized Healthcare 10: Peru Doctors' Strike, Health Financing, October 29, 2012

Tuesday, May 21, 2013

Mining 21: Chile Policies

Chile also belongs to the "Pacific Rim of Fire" where some 80 percent of all volcanic activities and earthquakes in the planet occur. The Chilean Ambassador, Roberto Mayorga, gave a good presentation during the Mining 2011 Conference. See the 34-slides presentation here.


At $40 billion a year of mining exports, the sector comprising 19 percent of GDP, it is indeed a major part of the Chilean economy. It is something that the Philippines can hope to replicate.

The northern part of the country is the mining region, especially Iquique region.  This Chuquicamata, I saw this in facebook being circulated as an ugly face of mining because of the huge depression in land surface, the barren soil with zero vegetation, and the sight of "natural resources being taken away by big multinational mining companies." But this is Chile government-owned mining company.


Another state-owned mining company is El Teniente. From this computer graphics, new/current mine site and future site is going deeper. It's a nice graphics.


This is a private mining project, jointly operated by BHP (Australia), RTZ (UK) and JECO (Japan). This looks shocking and "very exploitative of the planet" in the eyes of many anti-mining activists. For some entrepreneurs though, this deep hole is perfect for a future lake and resort hotel with lots of water sports facilities or even ordinary fishing -- and create lots of jobs in the process.


There are nine major private mining projects in Chile, involving investors from Australia, Canada, Chile, China, Japan and UK. Now look at the huge investments until 2017, $67 billion, wow.

EFN Asia 19: Chatib Basri as New Finance Minister of Indonesia

A friend whom I met during the Economic Freedom Network (EFN) Asia conference in Hong Kong in 2004, Chatib "Dede" Basri, has been appointed yesterday as the Finance Minister by Indonesian President Susilo Bambang Yudhoyono. 
Photo from: Jakarta Globe

In his presentation nine years ago in HK, I remember that two of his slides showed a quote from Adam Smith, 
[The rich] consume little more than the poor… They are led by an invisible hand … and thus without intending it, without knowing it, advance the interest of the society, and afford means to the multiplication of the species.
And from Milton Friedman, something like "The politicians and bureaucrats, they are led by an invisible hand and without intending it, without knowing it, advance their own interest over that of society."

I liked his presentation. He is a soft spoken yet highly articulate and intelligent guy. He got his PhD Econ from the Australia National University (ANU). During the EFN Asia conference in Kuala Lumpur in 2005, he was supposed to come too but he did not arrive. He was at that time, the Director of the Institute for Economic and Social Research Faculty, University of Indonesia.

Here are two news reports today from the Jakarta Globe.

Editorial: Free-Market Thinker to Lead Finance

By Jakarta Globe on 9:23 am May 21, 2013.
http://www.thejakartaglobe.com/opinion/editorial-free-market-thinker-to-lead-finance/


The appointment of M. Chatib Basri as the fourth finance minister under President Susilo Bambang Yudhoyono is a welcome move. The new minister has the requisite experience, but more importantly he understands the needs of the business community.

As he settles unto his new post after a successful stint at the Investment Coordinating Board (BKPM), Chatib will have to tackle several key issues immediately. These include keeping the budget deficit from exploding, dealing with the fuel subsidy issue and boosting tax collection.

These are not easy challenges, but Chatib has the experience, skills set and economic knowledge to make the right decisions.

The most pressing challenge will be to deal with ever-rising fuel subsidies. It is clear that the state cannot afford to fund fuel subsidies without causing serious damage to the state budget and macroeconomic stability. But managing the political implications of raising fuel prices will require skill and a significant amount of socialization.

On this score, his apolitical stance will stand him in good stead. Political parties cannot accuse him of politicking or favoring any side. But he will have to work hard to get legislation on his side.

Chatib is also probably the best person to improve the investment climate given his time at BKPM, where he cut red tape significantly. He will have to continue these efforts at the Finance Ministry. If he is able to streamline bureaucracy, he will have made a major contribution to improving both the investment as well as the business climate in the country.

A soft-spoken man, Chatib is nonetheless a forceful economic thinker. He is a free-market advocate who supports free enterprise, which is critical in ensuring that Indonesia remains an open economy. His appointment is good for the country and the economy.

Monday, May 20, 2013

Lifestyle Diseases 21: NCDs Alarmism vs. Rising Lifespan

From the WHO website, this update on NCDs is shown:

Noncommunicable diseases
Fact sheet
Updated March 2013

Key facts
  •  Noncommunicable diseases (NCDs) kill more than 36 million people each year.
  •  Nearly 80% of NCD deaths - 29 million - occur in low- and middle-income countries.
  •  More than nine million of all deaths attributed to NCDs occur before the age of 60; 90% of these "premature" deaths occurred in low- and middle-income countries.
  •  Cardiovascular diseases account for most NCD deaths, or 17.3 million people annually, followed by cancers (7.6 million), respiratory diseases (4.2 million), and diabetes (1.3 million1).
  • These four groups of diseases account for around 80% of all NCD deaths.
  • They share four risk factors: tobacco use, physical inactivity, the harmful use of alcohol and unhealthy diets.

The alarm bells about NCDs have been sounded by the WHO for several years now. The message is something like "Let us reduce deaths from NCDs, pour more public money into the problem."

So the Department of Health (DOH), PhilHealth and local governments have been pouring more money on reducing or preventing diseases and death from NCDs. PhilHealth for instance reported of Rising Claims for NCD. If PhilHealth will raise further spending for NCDs, the reserve fund can  evaporate soon, or PhilHealth will ask for higher monthly premium from members, especially those employed in the formal sector. Why?

People with NCDs are sort of "patients forever". Unlike treating infectious diseases like dengue or malaria, once the disease inside a patient's body is killed, the patient gets well and will not need medication or hospitalization for the next few years or ever decades. For patients with NCDs though, they have to visit a physician monthly or even more frequently. For instance, a hypertension patient, according to a physician or pharmacist who spoke during the MeTA forum at the AIM last April said will need a combination of 2-3 medicines per day.

The WHO I think is pulling health alarmism here, the same way they alarmed the world with the dangers of HIV/AIDS in the 90s. It turned out that the warning was exaggerated because if their projections were true, the population of Africa by now should be less than its population in the 90s, but this did not happen.

If an average Filipino dies of stroke or cancer or hypertension or other NCDs at age 75 or 80 or older, is it a problem?

WHO and DOH say Yes, because about 2/3 of deaths in the Philippines and worldwide now are due to NCDs.

For me it is not a problem. We will all die. If not of NCDs, we can die of infectious diseases or accidents or some crime.

The average lifespan of Filipinos now is 70 years old; 67 for men, 73 for women, so average of 70. If a person dies at 75 or older due to NCDs, there should be NO cause for alarm except alarmism itself. Ala "man-made warming" alarmism.

Even if death from NCDs rise from 66 to 80 percent, or even 90 percent of all deaths, but life expectancy has increased from 70 to 80 or 90 years old, then it is not a problem.

Perhaps the WHO and various government health agencies want people to die at 100 or 200 years old on average, so they play God to keep prolonging average life span? Which means governments will tax-tax-tax the rest of us further so it will have more money to play and act like a God.

I think governments should focus more on reducing morbidity and mortality from infectious and communicable diseases. Give more vaccines to children for instance to limit deaths from preventable diseases.

For adult NCDs, governments should step back and allow people to buy private health insurance, to augment existing government health insurance programs. As the WHO pointed out above, NCDs are closely related with unhealthy lifestyle, like people who over-eat, over-sit, over-drink and over-smoke. I know of some people who are fat and irritable, they don't even want to admit that they are fat, and yet all they want to do is sit down and eat, rest and sleep or watch TV for hours.

It will be a criminal act of the government to over-tax people who take care of their body more responsibly, so that government will have more money to subsidize the deteriorating health of this type of people. NCDs are essentially lifestyle related, with a minor factor due to genetics.

Meanwhile, Reiner Gloor of PHAP made a good discussion about NCDs in his article last week, below.
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http://www.bworldonline.com/weekender/content.php?id=70310

Posted on 05:16 PM, May 16, 2013
Medicine Cabinet -- Reiner W. Gloor

The global burden of NCDs


(First of a series)

EACH DAY, about 100,000 people around the world die from major non-communicable diseases (NCDs) namely cardiovascular disease, diabetes, asthma, chronic respiratory infections and cancers.

An estimated 36 million people succumb to these diseases each year, or some two out of three deaths globally. About nine million of these were people under the age of 60.

Many of the losses occur in low and middle-income nations to include the Philippines which had cardiovascular diseases as the number one cause of death among Filipinos, according to the Department of Health (DoH). With the sheer number of lives lost, major NCDs are no doubt the world’s biggest killer diseases.

NCDs place a heavy burden on individuals, families, and communities and public health systems that often rely on out-of-pocket payments.

The World Health Organization (WHO) said that out-of-pocket payments could cause households to incur catastrophic expenditures, which in turn push them into poverty. A WHO technical report, "Designing Health Financing Systems to Reduce Catastrophic Diseases," said that when people have to pay fees or co-payments for health care, the amount can be so high in relation to income that it results in "financial catastrophe" for the individual or the household.

Election 8: Growth, Debt and the 2013 Polls


* This is my article last Saturday in thelobbyist.biz.
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The Senatorial and local elections last Monday, May 13, 2013, was fought by candidates and political parties on various issues and battle grounds, foremost of which was the economy. While the administration trumpeted the fast GDP growth in 2012 and the recent ratings upgrade to investment status by Fitch and then by S&P, the opposition contended that such growth remains elitist and many poor people remain wondering where the growth and the jobs are.

From a cursory review of certain macroeconomic figures taken from The Economist, the following can be summarized:

One, economic growth of the biggest economies in North America and Europe remain non-impressive if not anemic. While the US and Canada are expected to grow 2+ percent this year and the next (1.7 percent in 2013 for Canada), their unemployment rate remains high at more than seven percent as of March 2013.

Two, the Euro area maintains its low growth, even contraction this year for Italy, Greece, Netherlands and Spain. Unemployment rate for Greece and Spain remains very high at 26 to 27 percent, something that is unthinkable for many Asian economies.

Three, Asia will retain their generally bullish outlook to be led by huge population economies China, India, Indonesia, Philippines and Vietnam. Their unemployment rates though are at medium rates of 4 to 9.9 percent. Inflation rates are projected to remain mild at only two to six percent, except in Vietnam and India that are seen to reach up to 10 percent.


Source: The Economist, May 4th 2013.

An “inclusive growth” that used to be called “broad-based growth”, of more equitable distribution of growth, income and assets, is the main demand coming from more sectors and players in the economy. Which simply means that people want more jobs, good paying jobs and benefits. Then people will be  able to move up the wage levels through time.

These are modest and understandable demand. A rising and growing economy like the Philippines as shown in the above table should be able to generally comply with these modest expectations. Such job creation need not come from big corporations or the government and its many agencies and offices. More importantly, job creation can come from the people themselves through micro- and small entrepreneurship, medium-sized enterprises with backward and forward linkages with the micro and small enterprises.

Local governments that require the preliminary business permits, taxes and fees, to be topped by business permits, taxes and fees by certain national government agencies (BIR, DTI, SSS, SEC, etc.) should become more considerate of such micro and small entrepreneurs.

Most of the campaign promises of the local and national politicians were focused on fighting corruption and having good governance. It seems that only very few of them proposed to reduce the arbitrary power of those in government to grant business permits and licenses.

Promises of more welfare and subsidies, like universal healthcare, universal education from elementary to college levels, universal housing and relocation, were sure attention grabbing for the voters. But such promises are not new, they have been promised by earlier politicians many decades ago. And high expectations often lead to high disappointment.

There are limits to what the government can provide because it is heavily indebted in the first place. A big portion of the total annual budget, about P1 out of P5, goes to interest payment alone. The public debt stock is rising by around P400 billion a year, mostly due to domestic borrowings.



Source: Bureau of Treasury, Department of Finance

The counting of the election result, even if it was automated, remains slow. This does not seem to be consistent with ensuring credible results. Credibility of the result is the most important consideration of an election, more than the victory of the administration or the opposition. Credible elections, credible justice system and enforcement of rules will produce more long-term positive effect for the economy and the people.

Now that the political and electoral battles are over, it is time to go back to plain economics – how to create more jobs, how to expand more goods and services, so that people can stand on their own in uplifting their own lives without depending too much on the politicians and the government.

Things are generally not so good at the global economy. The Eurozone for instance, nine of its 17 member-countries are now in recession; the average unemployment rate in the Eurozone was a high 11.4 percent in 2012, and is projected to rise further to 12.2 percent this year. Greece and Spain are in worse shape with unemployment rate of nearly 27 percent.

Many investors and traders abroad are hoping that the Philippine economy can provide them the proper economic environment to put their money and talent here, both in the short- and long-term. Let us not frustrate them in their basic expectation. The poor here badly need more jobs, better pay, more goods and services produced in our own soil.
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See also:Election Watch 4: Senatoriables on Healthcare, March 08, 2013 
Election Watch 5: Sin Tax Law, Hospital Over-regulation and Senatoriables, May 07, 2013 

Election Watch 6: On Political Dynasty, May 11, 2013 

Election 7: My Candidates for Senators, May 12, 2013

Saturday, May 18, 2013

Mining 20: Miscellaneous Comments on Mining

Below are several comments I got in my various exchanges in facebook on the subject, made last week.
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Froi Vincenton: IMHO, irresponsible mining exists in the Philippines because of several institutional factors. When I say 'institutional factors' I'm referring to government regulations and restrictions. The following are some institutional factors that encourage irresponsible mining:

1. The institutional/constitutional prohibition on ownership of mining lands. History has it that private property ownership promotes responsible business and proprietorial activities. It promotes responsible stewardship. Here in RP all lands of public domains, including mineral and mining lands, are owned by the State. In the U.S. mineral and mining lands can be owned by private citizens/individuals. Today millions of American land-owners have shares in big and small mining and oil companies.

If people are prohibited from owning mining and mineral lands, they would have less incentive to improve their property and to invest in long-term venture like tourism, parks, real estate, community building, etc. I think that if mining companies were allowed to own mining lands, they would have more incentive and reason to protect their property, invest in technology innovation to reduce waste, turn nearby areas into parks, tourism spots or new communities for their employees, etc.

2. Lack of competition due to protectionism. Under Philippine mining laws, foreign corporations may only be qualified to join the country's mining industry for purposes of granting an exploration permit, financial or technical assistance agreement or mineral processing permit. This system protects Filipino cronies and oligarchs against DIRECT foreign competition.

How does this promote irresponsible mining? The mining industry is technology intensive. It requires not only technology transfer but also intellectual capital. When it comes to mining technology innovation and developments are investments made by big mining companies. And these mining companies cannot just transfer their technology or teach us how to be responsible miners without getting something in return. They want trade. Unfortunately our Constitution is in breach of "free trade" and the reciprocity principle in international law.

Lack of competition means mining companies would have less incentive to innovate, to provide better compensation package to their employees, to improve their operations and systems, to reduce wastes, etc.

3. Environmental laws that make it almost impossible for mining firms to operate. These environmental regulations add costs. In other words, regulations have economic costs. and they also impact people's and organizational behaviors.

Nonoy: Thanks Froi. The industry -- (a) big metallic mining in particular -- is absolutely the most regulated, most taxed in this country. The two other players in the industry, (b) "small scale" metallic mining and (c) non-metallic big mining like coal, cement, quarrying, are not as taxed.

On top of the usual taxes that apply to corporations in other sectors (food/resto, transpo, shops and malls, beverage, etc.), there are additonal taxes and fees like: excise tax, contractor's income tax, royalties, occupation fees (to LGUs), royalties to indigenous people, royalty to surface private owners. Then there are mandatory CSR projects to communities like putting up health facilities if not a hospital, a private school but free to students, roads and street lighting network, etc., ON TOP of various taxes and fees collected by the national and local governments.

Jayant:  Filipino regulations are so difficult that good people cannot do business in mining. So mostly only crooked foreigners can manage to do mining.

I have been following a lot of mining companies in Philippines. As you can see in the responses you get on your comments about mining from your own friends (expect in the above rare case), well-educated Filipino take pride in being armchair economists. They know exactly how mining is not helping the locals and they know exactly what the regulations should be like. This despite that they have no clue what mining is about, how capital intensive and risky it is. But this has lead to a regulatory regime where... foreigners must own no more than 49% of a mine. Now, mining companies end up owning 100% but they do accounting and legal juggling to achieve this. So, while on paper their ownership is only 49%, they do transfer of profits to accrue 99% of the profits to themselves. Now, this requires help from corrupt locals. You end up with opaque financials. Also, the kind of manipulations this requires ensure that only corrupt people using other people's money run such mines. Now this is really, really bad for Philippines. But the normal guy is incapable for understanding this causality. He acts as if he knows exactly how Philippines should be run. But Philippines somehow creates some of the world's worst minds--they seriously lack critical thinking. You end up with people who are incapable of being leaders. The people who write on your blog about why foreigners should not be allowed in into mining fail to see that so many Filipinos end up being maids and prostitutes as a result. It is a sorry state of affairs.

Weekend Fun 40: Bank Robbery and Management

I got this from facebook. Witty story, enjoy.
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There was this robbery in Guangzhou , the robber shouted to everyone: "All don't move, money belongs to the state, life belongs to you".

Everyone in the bank laid down quietly.

This is called "Mind Changing Concept --> Changing the conventional way of thinking".
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One lady lay on the table provocatively, the robber shouted at her "Please be civilised! This is a robbery and not a rape!"

This is called "Being Professional --> Focus only on what you are trained to do!"
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When the robbers got back, the younger robber (MBA trained) told the older robber (who is only primary school educated), "Big bro, let's count how much we got", the older robber rebutted and said, "You very stupid, so much money, how to count, tonight TV will tell us how much we robbed from the bank!"

This is called "Experience --> nowadays experience is more important than paper qualifications!"
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After the robbers left, the bank manager told the bank supervisor to call the police quickly. The supervisor says "Wait, wait wait, let's put the 5 million RMB we embezzled into the amount the robbers robbed".

This is called "Swim with the tide --> converting an unfavorable situation to your advantage!"
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The supervisor says "It will be good if there is a robbery every month".

This is called "Killing Boredom --> Happiness is most important."
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The next day, TV news reported that 100 million RMB was taken from the bank. The robbers counted and counted and counted, but they could only count 20 million RMB. The robbers were very angry and complained "We risked our lives and only took 20 million RMB, the bank manager took 80 million RMB with a snap of his fingers. It looks like it is better to be educated to be a thief!"

This is called "Knowledge is worth as much as gold !"
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The bank manager was smiling and happy because his loss in the CINOPEC shares are now covered by this robbery.

This is called "Seizing the opportunity --> daring to take risks!"

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See also:
Weekend Fun 35: Miriam D. Santiago is Cute, June 03, 2012
Weekend Fun 36: The Karl Marx Mastercard, July 06, 2012
Weekend Fun 37: On Fighting Poverty, July 07, 2012
Weekend Fun 38: Skylab Motorcycles, July 14, 2012 

Weekend Fun 39: Funny Photos in Manila Floods, August 12, 2012

Wednesday, May 15, 2013

On IPR Abolition 18: Patent, Copyright and Jeffrey Tucker

Reposting below the exchange I had this morning in facebook. With permission from Mike Perez, Stephen Cutler and Dong Abay. A bit long, more than 2,300 words, 5 pages, enjoy.
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"If patents for inventions were part of the free market, to make and sustain them would not require legislation, constitutions, bureaucracies, filings, armies of attorneys, and years of litigation." -- Jeffrey Tucker, https://www.fee.org/the_freeman/arena/intellectual-property-rights

Description: http://static.ak.fbcdn.net/rsrc.php/v2/y4/r/-PAXP-deijE.gif
Nonoy Oplas This is simplistic thinking. One, physical assets like cars, houses, shoes, laptops, etc. are part of the free market, and they require legislation, constitution, bureaucracies.. And so IPRs are also part of the free market, they are property rights that need respect and enforcement.

Two, private property rights can be enforced by the private sector or civil society, with or without govt penalties. If thieves and shoplifters are caught inside a mall, they are apprehended by private security guards, they can be photographed and their faces plastered in the mall in a wall of shame, other schemes. That is private punishment against violation of private property rights.

The same way, thieves of IPRs like patent, trademark and copyright can be penalized by an industry association, a civil society org. If someone sells burgers wrapped with fake McDo or Burger King wrappers and trademark, and the consumers get good poisoning, who will they sue -- (a) the orig McDo/BK, (b) the IPR thieves like those sellers, or (c) IPR abolitionists like Jeff Tucker? Obviously (a) and (c) will not accept responsibility so (b) must be prosecuted for misleading the public and consumers. If people get food poisoning after consuming food from the orig McDo/BK store, then they can be held accountable. But these companies take care of their trademark so carefully, they can assure the public of 0.00% possibility of food poisoning as they know the consequences of damaged brand and trademark.

IPR abolitionists like Tucker are just simplistic minded.

Joshua Gallardo Roa Woww you had stipulated it clearly....thank you for this info Nonoy Oplas

Nonoy Oplas There was a case of a local burger shop named “Mang Donalds” with logo somehow similar to MacDonald. The latter did not like this, so it sued the former over trademark issue, the former later closed shop, resurfaced as another food shop with a more unique name and encountered no legal issues, prospered. IPR forces people to be more unique, more innovative and creative. IPR abolition favors the lazy, un-imaginative and plain copycatters, http://funwithgovernment.blogspot.com/2011/09/on-intellectual-property-abolition-part_20.html

Stephen P. Cutler Nice work, Nonoy. These kinds of discussions keep us, as a nation, stronger. So many of us are intellectually lazy and just accept the ideas of others without question. Or we make personal attacks against the proponent of the idea,and fail to point out the weakness of that idea. THAT should be the focus. Thanks, again.