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Economic
Freedom:
The 'Haves' and the 'Have Nots'
Wolfgang Kasper, Manuel Ayau, Barun Mitra and James Shikwati
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The
Centre for Independent Studies had a recent visit from three
leading liberals: Manuel Ayau, the President emeritus of the
private Universidad Francisco Marroqu’n and an experienced
business leader from Guatemala; Barun Mitra, the founding
Director of the Liberty Institute, a free-market think tank
in New Delhi; and James Shikwati, the founder and Director
of KenyaÕs Inter-Region Economic Network in Nairobi. They
spoke with Wolfgang Kasper, Senior Fellow at the Centre, about
aid, poverty, the law and trade.
WOLFGANG
KASPER: Welcome to Australia. We are most fortunate to have
three prominent liberal thinkers here from those major regions
of the world that are outside the increasingly integrated
and affluent core of the world economy, namely Europe, North
America and the ascending Far East. In a way, you represent
those poorer two-thirds of humanity who are sometimes called
the Ôhave notsÕ: Latin America, South Asia and Africa. This
is a great opportunity to discuss the roots of mass poverty
in the third world and to explore whether the ÔhavesÕ can
do something to help.
Maybe,
we could begin by asking you, Don Manuel, why Latin America,
once the most affluent part of what we now call the third
world, aborted several promising starts into economic reform
and growth. Why did Latin American countries (except Chile)
never manage to sustain liberalisation and economic growth?
MANUEL
AYAU: First of all, this is entirely our own fault. We cannot
blame anyone.
Of course,
world politics had some effect, and this convinces many of
our politicians that the outside world is to blame for our
failures. US foreign aid has been tremendously impoverishing
because it has maintained many bad politicians in power. In
effect, transfers from poor taxpayers in the rich countries
to the rich elites in poor countriesÑas Lord Peter Bauer used
to call foreign aidÑhas enabled Latin American leaders to
implement social welfare policies which poor countries cannot
afford. Money-dispensing aid organisations have also been
responsible for inspiring much harmful intervention in industry
and commerce.
KASPER:
Judging from an African and South Asian angle, would you,
James and Barun, agree?
JAMES
SHIKWATI: In Africa, capitalism and economic freedom have
been widely perceived as part of the colonial conspiracy.
African independence was supported by the socialists. Therefore,
African elites have long felt and acted anti-capitalist and
anti-free market. During the Cold War, East and West channelled
much aid to Africa, trying to buy friends. Our leaders focused
on the interests of the donors to obtain even more aid. Because
of the easy option of aid, government officials did not have
to get involved in the difficult business of improving productivity.
Many got addicted to aid and became mere aid administrators,
who did not take the interests of the people into account.
BARUN
MITRA: In India, aid has not helped either, given the huge
size of India. As elsewhere, it has led to ideological corruption
and has institutionalised and subsidised corrupt political
practices.
KASPER:
Do you refer to Soviet central planning and NehruÕs build-up
of state-owned industries?
MITRA:
That is part of it. However, Western aid has helped to sustain
that costly, hurtful socialism. Aid locks in vested interests
and establishes a cycle of growing aid dependency. The so-called
ÔGood SamaritansÕ create a caste of professional aid seekers,
offer spoils to corrupt politicians and promote the paternalistic,
top-down collectivism that destroys economic freedom and stifles
individual initiative. We get a class of official mendicants
who specialise in writing grants proposals. These have no
relevance to the recipients. Nor do they address the realities
on the ground. After all, the grant proposals have to satisfy
only the donors.
SHIKWATI:
Because of past abuses, much foreign aid for Africa was frozen
in the 1990s, including by the World Bank. Fortunately for
the ordinary people, politicians now depend more on raising
taxes and therefore have to listen to taxpayers. This makes
them think more about cultivating genuine development.
More people
in Africa now query whether aid is the path out of poverty,
and private citizens demand more freedom and better control
of corruption. Businesses, who pay 80% of the taxes in East
Africa, now have more influence with governments thanks to
the drop in aid. Business leaders call for legal and judiciary
reforms, free trade and free movement among neighbouring countries.
They see freedom as something positive. Of course officials
and politicians resist and still seek more aid to bankroll
their old ways. But matters are changing, because they have
to.
AYAU:
Another part of the ÔGood Samaritan problemÕ is that aid-giving
Western governments delegate the task to inexperienced officials
who are economically illiterate and donÕt know the countries
they work in. Frequently, the aid bureaucrats are career officials
who dislike Western values and the enterprise culture, which
has enriched their own countries. Harvard or Georgetown University
graduates then try to create a world of their dreams in third
world countries. Yet, ministers and taxpayers in donor countries
rely on these so-called experts. They would be scandalised
if they saw how their funds are spent.
MITRA:
You just mentioned ÔWestern valuesÕ. Individualism, material
aspirations and the spirit of enterprise are not exclusively
Western characteristics. They are universal. Likewise, the
collectivist enemies of the free, open society come from the
East and the West.
I agree
with Manuel that Western taxpayers have no idea how their
funds are spent. The World Bank and others have begun to acknowledge
that much has gone wrong with aid giving. They now involve
non-government organisations in implementing aid programs.
So the aid industry is also corrupting civil society! [laughter]
KASPER:
President Bush, at a recent summit in Monterrey, promised
a big increase in foreign aid, but coupled with a Ônew conditionalityÕ,
namely that aid will be given to those poor countries that
liberalise their economies and make progress towards genuine
democracy. The US proposes to stop aid to countries that fail
to enforce private property rights, free markets and the rule
of law. This is based on Ôinstitutional growth theoryÕ, that
is the empirically well-founded insight that economic freedom,
more than anything else, promotes economic growth.1
Can conditionality work?
MITRA:
Conditionality would be resented in recipient countries. Besides,
it is in the interest of our countries to enhance our own
standards of economic freedom. The impression should not be
created that we liberalise to please the US State Department.
SHIKWATI:
I agree. Conditionality smacks of neo-colonialism. Free institutions
have to be home-grown! After a long history of bad governance
and repression, Africans are finding out about the consequences
of bad governance. They have begun to realise that assured
freedom is important for getting out of poverty. It would
be tragic if the external imposition of conditionality gave
bad politicians an excuse to garner sympathy votes and again
play the nationalist card. AYAU: I am also sceptical. The
US President gets his information through the aid agencies.
Would they ever tell him to discontinue a project which gives
them work? Would they not conspire with the local aid beneficiaries
to make Washington believe that conditions are fulfilled,
or will soon be?
The powers
in the foreign aid business donÕt understand the importance
of economic freedom, because they do not understand the power
of spontaneous development. By this, I mean that free people
help themselves intelligently and resourcefully if the rules
of law apply. If it is not prevented, development will happen.
But governments, in their ignorance, try to impose development
schemes from the top down, typically hampering this process.
They design plans that inevitably stifle private experiments,
innovation and the initiatives of industry and commerce.
KASPER:
The problem normally is that the planners and aid officials
pretend to have the solutions and then impose them, whereas
liberals say: ÔTrust the people to discover what is good for
them. Only foster simple rules that protect private property,
free contracts and equality before the law.Õ However, the
planners act on false pretences; they are ignorant of the
side effects. Thus, the planners promoted conspicuous projects
such as the Assuan High Dam in Egypt, ChinaÕs farm collectivisation
and the Great Leap Forward, amongst others, to overtake Britain
in iron production.
The side
effects were discovered later: Lake Nasser upstream from Assuan
silted up; downstream valuable farm assets were lost, as people
built houses on fertile riverside land, the Nile silt no longer
fertilised the land and salinity rose dangerously. In China,
the farmers melted down farm implements and iron bedsteads
with local wood to meet plan targets, in order to produce
iron that was reworked . . . into farm implements and bedsteads.
The ÔGreat Leap BackwardsÕ produced deforestation and land
erosion.
AYAU:
One could add to these examples endlessly. Only self-reliance
and turning your back on these grand plans will produce development
of what the people want. Development is far too important
to be left to government!
Let me
ask: Why donÕt governments unilaterally cut high tariffs,
which hurt us in Latin America? Instead, we are waiting for
longwinded WTO negotiations which are premised on the principle
that we keep hurting ourselves as long as you hurt yourselves!
This mutual masochism of trade negotiations can only be explained
by the wrong-headed collectivist approach to developmentÑand
perhaps the enjoyment of conference facilities and career
opportunities for trade negotiators.
MITRA:
The delays in liberalising trade and capital flows in big
countries like India have been bad enough. In addition, this
has gone along with much foot-dragging in reforming domestic
markets. The poorest are disadvantaged most by government
controls. They may be illiterate and hungry, but they are
surprisingly enterprising and resourceful in producing a little
wealth, and trading to mutual advantage. The poor of India
have to be; otherwise, their families starve. The poor people
are least capable of dealing with bureaucratic controls or
obtaining licenses. Of course, they manage to circumvent regulatory
obstacles, though this is not cost-free. Where but amongst
the poor of India can you see mechanics assembling computers
or motor cars under a tree, simply because the costs of running
formal factories are artificially inflated by regulation?
People assemble secondhand engines and new components to build
farm machinery and cars.
Fortunately,
India has always had such bazaar-level enterprise. This was
lacking in the Soviet Union, and this explains the USSRÕs
demise. By contrast, IndiaÑdespite emulating the Soviet model
after independenceÑsurvived the ordeal since we could fall
back on the longstanding culture of small entrepreneurs in
the informal private sector.
Good
Samaritans from the outside, who have never lived among poor
people, simply cannot understand this. How can people who
look so helpless begin to help themselves? I tell you: You
give them their freedom and they will create wealth! No aid
agency can imagine this or indeed imagine spontaneous growth
can happen without their intervention and assistance.
SHIKWATI:
I can see numerous examples of poor Africans helping themselves,
as long as they are free to exchange goods. We have a lot
of spontaneous enterprise and trade in Africa, for example
in reselling second-hand clothes. When people learn to rely
on governments, they become lazy, unimaginative and poor.
When you open up, they solve problems. Let me give you just
one example: During the recent drought in Kenya, many predicted
a national disaster and anticipated calls for international
food aid. Fortunately for the poor, the borders with neighbouring
countries had been opened to trade, so that traders were able
to bring in maize and other foodstuffs from Uganda and Tanzania.
The business solution quickly solved the worst of the crisis.
Governments and international organisations tend to move slowly
and only after a famine has begun.
KASPER:
Why do your governments not throw out the false foreign prophets
that advocate aid dependency?
AYAU:
Because of the universal nature of government. Politicians
everywhere are easily bribed by handouts and access to instruments
of control. Rent-seeking is part of human nature. If the rich
countries gave no aid, there would be more pressure on our
politicians to get things right. Aid offers an easy bail-out.
Wrong-headed, economically illiterate policies are continued.
Without aid, there would be more freedom, cleaner government
and therefore more wealth creation.
SHIKWATI:
Foreigners offering aid pretend that there is an easy option.
Politicians will always go for that! But foreign aid is not
a free lunch. Much of what came into Africa before 1990 was
not a gift, but a loan. As a result, every Kenyan born today
is saddled with a stifling liability of US $216, and that
in a country where per-capita income is US $377. The Ôdo-goodersÕ
may come with good intentions, but their advice and their
actions have led to bad consequences. As a result, many Africans
are now alienated and suffer a drop in living standards.
Nonetheless,
I also want to add a word of caution here. Grandstanding,
nationalist leaders in Africa have called for the World Bank
and others to go home, but they stopped with the rhetoric.
What African countries need most is an improvement in the
basic institutionsÑgood and enforced laws, genuine democracy,
and clean governance. Over the past decade, Kenyans have experienced
economic decline. This will not change without improvements
in the rule of law and law enforcement. Crime rates are high
and there is a lot of corruption. A recent report on corruption
in Kenya showed that the worst areas are the judiciary and
the police. It will therefore be very difficult to weed out
corruption with the help of judges and policemen.
Unless
these fundamental conditions are improved, economic growth
will remain elusive. Foreign prophets who offer a bit of aid
or simply dramatise our shortcomings only divert us from this
key task. It is now increasingly clear that weak institutions
are the fundamental cause of poverty. There is an initiative
in Kenya for a constitutional review to address the root causes:
Governance is not balanced by a division of powers; the executive
often arbitrarily over-rules the judiciary and parliament.
Executive interventions plague private business. Who invests
when arbitrary decrees come from the presidential palace?
To give but one example: Our coffee growers have been subjected
to the rulings of a government board, and the coffee trade
is licensed. The farmers have been pushed around by the authorities
to such an extent that they have uprooted their own coffee
trees in protest. There is no parliament and no free press
to look into the causes of this type of interventionism. Things
have become freer than they were before 1991-92, partlyÑas
I saidÑbecause aid no longer funds government so generously
and the rulers therefore have to pay some attention to the
people.
AYAU:
No country in the history of humankind has ever developed
though foreign aid! A key component in successful development
is capital. If you tax it heavily, or discourage saving by
inflationary policies, you get less of it and you attract
less capital. High taxation of capital is based on these false
egalitarian, redistributive philosophies which foreign aid
has promoted and entrenched.
MITRA:
Ironically, high taxes also prevent the employment of bountiful
labour in the third world. In many countries with abundant
labour, taxes and regulations of labour markets make job creation
virtually impossible. Labour regulations in the organised
sector in India raise the costs of employing people by a factor
of two or three, if not more. So industrialists reduce employment
and use excessive amounts of capital. Most Indians therefore
have only a chance of finding a job in the unorganised and
underground parts of the economy.
AYAU:
Inflated labour costs are to a great extent due to the UNÕs
International Labour Organisation (ILO). They have always
represented union and anti-capitalist interests, beginning
with the Soviet influence in the 1950s. The ILO has been responsible
for much third world unemployment.
MITRA:
You can see this in India, where 85% of the workforce are
now outside the organised sector; 50% of all jobs are in the
underground economy. Most big employers cannot meet the internationally
imposed regulations. Many regulations are unethical and most
are unfair to the vast majority of mankind. Poor people lose
out on jobs that put them in a position to learn better skills,
compete in world markets, raise their productivity, and earn
more.
One also
has to realise that employment in the unorganised sector,
to which ILO regulations relegate so many, is insecure and
often outside the protection of the law. The underground economy
is racked with violence and strong-arm tactics.
KASPER:
India belatedly implemented a number of good economic reforms.
These have paid a worthwhile growth dividend in the 1990s.
Will these reforms be upheld and reinforced?
MITRA:
While we can argue with the timing and pace of reform, liberalisation
has now created an important constituency for a free economy.
In our democracy, no party and no provincial government could
return to collectivism. The provinces now compete in our federal
system, which is a great advantage for big countries like
India.
As we
said, markets, to be efficient and to produce development,
require basic ground rules. Internal, customary institutions
are important here, but they often go along with much aggression
and strong-arm tactics. Therefore, there is a need for external
protectionÑthat is by governmentsÑof lawful conduct and the
fulfilment of contracts. Government agents, who are given
the monopoly of exercising violence, have to be strictly controlled.
Only then will they enforce the rules in just ways. Without
the rule of law, the poor cannot help themselves all that
effectively. External government law must respect the customary
norms that have evolved in society. Otherwise, it cannot be
effective. If the government law bypasses the people, the
people will bypass the law.
AYAU:
Good law is essential. Unfortunately, we now have a lot of
legislation and regulation which is based on fairness and
redistribution. This undermines the law. The philosophy of
fairness and equality leads to an excess of prescriptive legislation
and interventions. In addition, legislation and regulations
are imposed after having been drafted by amateurs in the US,
who are ignorant of our realities and cultural traditions.
This
undermines the respect for the simple, expedient laws that
help people to help themselves. Excessive legislation often
makes law-abiding behaviour impossible. In Latin America,
law enforcement has been neglected. Besides, law and order
have often been imposed by the Right and the dictatorial military.
This discourages good people from joining the police, the
military and the judiciary.
KASPER:
Can we talk about trade and investment flows between the Ôhave
notsÕ in the South and the ÔhavesÕ in the North? The closed
economy hurts the poor in the third world. What should be
done?
MITRA:
As India is still largely rural, we would benefit from free
market access for all our agricultural products. This would
help promote openness and technical innovation in this key
part of our economy. It is no accident that poverty is endemic
in the countryside, which is the key to poverty eradication.
If the EU, Japan and the US really care about the poor, they
should abandon their selfish protectionism and the subsidies
that featherbed their own farmers. Maintaining two EU farmers
at their present living standards on the land costs maybe
400 Indian farmers their life opportunities.
SHIKWATI:
Australia is helping third world countries by showing us how
to negotiate in international forums. We do not have the negotiating
skills and get easily pushed around by rich country trading
interests. We want trade, not aid! I would only plead that
the rich countries give Africans a chance to export all their
products freely. We also want to attract foreign investment,
but blatant corruption, outright expropriation and bad institutions
are obstacles. Why invest when officials demand kick-backs
from foreign investors?
AYAU:
Whatever happens in agriculture, our countries have to industrialise
to wipe out poverty.
MITRA:
Indeed. This is why I am deeply troubled by many of the NGOs
who now advocate idyllic rural ways that are bound to perpetuate
poverty.
In the
last ten years, we have had a 15% drop in the rural population
because the economy has been opened up and new opportunities
arose outside agriculture. This has been crucial to reducing
the poverty problem in India.
KASPER:
The shift from the land into industry happened in East Asia
from the 1950s. Many East Asians are now coming close to rich
country living standards. Why has there not been more such
mobility in Africa or Latin America?
SHIKWATI:
In Africa, many people are tied to the land. A small plot
that they own is their only material security. Life in city
slums is miserable and most insecure. In the past, governments
have also coerced people to return to the land. Yet, inherited
plots of land are getting divided among more and more sons,
so that they get locked into poverty.
AYAU:
The main reason for rigid employment structures is the tariff
that prevents efficient, innovative industrialisation. Customs
houses are very expensive; they force producers to hold large
inventories, cost huge bribes and induce industrialists to
turn from producing to lobbying and corrupting politicians.
Tariffs invariably smother the enterprise culture and destroy
competition. Yet, the biggest obstacles to opening the economy
are local business lobbies, who like protected profits and
comfortable markets. MITRA: Ironically, this also applies
to foreign-owned companies. Ford has now joined domestic car
producers to lobby hard against car imports into India. In
the 1980s, Pepsi spent millions of dollars to keep Coca Cola
out of the Indian market, and they succeeded for a few more
years.
AYAU:
Most businessmen are short-sighted. They do not understand
that a freer, open economy increases the size of their own
market. Prospering exporters create income growth that benefits
local producers, too. Few businessmen understand comparative
advantage . . .
KASPER:
. . . which is based on the notion that one can obtain many
things either by the direct method of producing these oneself,
or the indirect method of specialising on what one is particularly
good at and trading these products for all the other things
one wants. The latter method is invariably much more conducive
to high living standards. For example, a surgeon may also
be very good at cutting hair. However, if he specialises in
cutting open patients and sends the family to the hairdresser,
they enjoy a higher living standard. Australians would be
better off if they concentrated on mass-producing aluminium
engine blocks which they can make comparatively well, that
is, comparative to other products, and then traded the engine
blocks for assembled cars from other countries. AustraliaÕs
trade liberalisation has demonstrated how much cheaper and
better cars and garments become when tariffs and quotas are
cut. Specialisation lifts overall growth. It is a win-win
game.
AYAU:
The universities have failed to explain comparative advantage.
Most business people, officials and academic economists, let
alone journalists, do not understand the merits of specialisation
and exchange, that is comparative advantage.
MITRA:
This sort of economic illiteracy makes it easy for the demonstrators
against free trade to win allies. Foreign do-gooders now try
to push up wage levels in the third world artificially, enforcing
a kind of extended EU social charter. They destroy the very
basis on which poor, low-wage earners in India can gain from
trade. This is why the advocacy groups do not attract much
support in the third world where people want development and
prosperity.
KASPER:
ÔFriends of the EarthÕ and similar groups are now discussing
with EU governments how to penalise energy-rich countries,
like Australia, for exploiting an Ôunfair energy advantageÕ
and emitting gases into the atmosphere. The NGOs argue for
fair trade, but fairness and just prices are undefinable concepts.
A fair world trade order leads to politicised conflicts. On
the other hand, we understand clearly what free trade and
market prices mean. This makes for good world citizenship.
The street
protesters, who oppose ÔglobalisationÕ, seem to think that
more open trade and capital flows destroy the chances of the
third world poor of working and learning their way out of
poverty. If you met these street protesters, what would you
say to them?
SHIKWATI:
Yesterday, I met a Kenyan street trader in Sydney. He observed
that the street protesters against the recent Ômini-WTO meetingÕ
here were spoilt, idle middle-class kids who gratify themselves.
They do not care for the third world poor. On the other hand,
African officials at the meeting saw the NGO protesters in
a different light. They thought that agitation for free medicine
and debt forgiveness would strengthen the hand of negotiators
from poor countries. I think the advocacy groups are counterproductive.
They only mount their campaigns to raise money for themselves
in the West. Their campaigns always amount to ensuring that
Africans remain beggars. If Africans are given cheap AIDS
medicine, that will at best be a temporary benefit. They will
not be able to buy the next, improved generation of drugs.
And even if the drugs reach our countries, that does not ensure
that they will be distributed and administered. We want trade
to empower ourselves to buy the best drugs with what we earn.
The NGO protesters would do a lot of good for the poor, if
they marched against corruption in third world governments.
MITRA:
NGOs always demand fair trade. But in reality, free trade
is fair trade. If you do not exploit comparative advantage,
there is nothing to trade.
I would
only invite the advocacy activists and those who give them
money to experience poverty. They may have good intentions,
but they have no understanding of poverty and how to overcome
it. I saw this recently in Delhi during the UN Conference
on Climate Change when some members of the European Parliament
and young Canadian students experienced Indian poverty at
first hand. They agreed quickly that they couldnÕt argue about
potential Greenhouse impacts or agricultural protectionism
with villagers who have no electricity. Real life is the best
educator on these matters. The activists should always be
invited to confront the real world.
Originally,
I thought anti-globalisation protesters were simply ill-informed,
but having met them during several summits, I now feel that
many are the handmaidens of selfish, protectionist interests
in the rich countries or do not care about third world misery
and how to get rid of it.
KASPER:
I am very interested in the underlying cultural and institutional
causes of development. I ask myself why people in East Asia
did not fall for the blandishments of foreign aid, or listen
to the prophets of import substitution and ILO-style labour
policies.
In this
context, may I ask you, Barun, a question specifically about
Indian culture. Sociologists say that the ideal of dharmaÑaccepting
your fate, not fighting to better yourself by innovating and
competingÑis a great hindrance to modernisation in India.
MITRA:
Yes, but there is also karma, the individual responsibility
for bettering your destiny. Hinduism does not have a consistent,
cohesive philosophy, but we have great religious tolerance
that integrates people of great diversity. In the marketplace,
diverse people can interact peacefully. Markets make multicultural
society possible. Our tolerant spirit and the bazaar have
kept India together. Markets are the way to multicultural
harmony. This makes me proud to be an Indian. We have had
our problems, butÑon the wholeÑthe one billion Indians live
together harmoniously because they are able to interact informally
in markets and have basic understandings that protect lawful
conduct.
AYAU:
Let me quote Voltaire who wrote that the stock market was
a friendly, sacred place, much more so than any church.
SHIKWATI:
Africans have long practised customary laws which facilitate
trade and markets. Different tribes have mixed and bartered
with each other throughout history. Only relatively recently
have legislation and taxes disrupted these exchanges. Now,
a lot of trade has gone underground to avoid value-added taxes.
Moreover, politicians have sometimes interfered by agitating
against traders from outside ethnic groups, telling the people
that the outsiders make them poor.
AYAU:
The universities also fail to convey the dire reality of third
world poverty, which James and Barun have spoken of so passionately.
Neither do universities properly teach the essential theories,
such as the theory of comparative advantage. Most academics
are part of collectivist, rationalist networks. This was the
motivation why I, an engineer by profession, studied economics
and founded a small, private university in Guatemala, where
we teach the principles of a free economy.
MITRA:
I would say the same of myself. I, too, was an engineer who
began to ask why the poor, who are intelligent and capable
of bettering their condition, lived in such dire misery. There
was something fundamentally wrong. I began to reflect on the
enormous waste of human potential and creativity. This is
when I discovered the literature of classical liberalismÑAdam
Smith, Ludwig von Mises, Friedrich Hayek, Julian Simon. They
inspired me to found a free market think tank.
I did
not fall into the Marxist-collectivist trap, because I always
had a respect for the individual and voluntary exchange, rather
than coercion and planning. People are capable of looking
intelligently after their interests. They learn. They are
able to bargain intelligently. Many members of the eliteÑacademics,
NGO activists and planners from rich and poor countriesÑbelieve
that the poor are just ignorant and need to be guided. This
is condescending and completely wrong. My intent is to enable
the poor to use their energies, creativity and knowledge in
pursuit of their own purposes.
SHIKWATI:
My family were poor small landholders, and I studied to become
a teacher. At college, I got interested in philosophy. We
tried to find African philosophies to solve African problems.
After an American free market organisation gave me a copy
of BastiatÕs The Law, I realised that our ideas were
hopelessly socialist. The way forward was to adopt free markets
and self-reliance within the framework of simple, reliable
laws.
I have
now become a self-taught Hayekian economist. In May 2001,
I founded my think tank; and I can report that I am now in
demand to give lectures, write regular op-ed pieces for the
papers and contribute to radio programmes. I have met many
new friends through workshops that we are organising. The
time is ripe for free market ideas, but we will have to be
tenacious.
KASPER:
I am sure that the readers of Policy will join me in
thanking you for inspiring us and sharing your insights.
Endnotes
1 This
has been demonstrated yet again by the highly respected survey
of Economic Freedom of the World 2002, which the Fraser
Institute in Canada publishes (see www.fraserinstitute.ca),
as well as the annual assessments by The Heritage Foundation
(www.heritage.org) and The Wall Street Journal .
Wolfgang
Kasper is Professor Emeritus of Economics, University
of New South Wales and convenor of The Centre for Independent
StudiesÕ Economic Freedom Watch series.
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