Cato Institute's Moment of Trial

It has always been in my mind that think tanks generally provide a good ground for developing thinking and generating new policy ideas in society. Holding this truth asnd self-evident, I have always argued that there is a solid correlation between the number and quality of think tanks in a polity and the quality of life of citizens. Taking this idea further, I have maintained that the variety in quality of the think tanks is in many respects a measure of the fact that larger economies have surpluses and firms that may contribute towards the support of dispassionate thinking and idea generation.

I have posted a number of pieces on this blog such as this, this and this in which I mused on a number of issues pertinent to think tanks. Following a single visit years ago, I acquired and have often maintained enormous respect for the Cato Institute as the example of an ideas institution with rigorous analysis and a wide range of policy interests. Added to the fact that it is well-endowed with intellectual and financial resources, it remained in my eyes the libertarian's think tank. And yet it is clear that this think tank is about to go through an internal civil war that would leave its credibility in tatters and with a major loss of its secure financial base if a takeover that is being proposed by the Koch brothers is successful. 

David Weigel's article narrates about the sudden change that the institution would undergo if the composition of its Board of Directors changed as desired by leading financial supporters. It impresses me that the structure itself mirrors that of a corporation but the assertiveness of the new members is undesirable because it is specifically calculated to ensure that research and policy prescriptions take a predetermined political shape. The lesson of this event is that no individual should place political interests ahead of a working and respected institution and that when all this is done, Cato will not be the same again. It is impressive that the staff is clearly aware that this shift will affect their work adversely and are supportive of the president. May reason prevail.

What Do Governments Need Most?

I have often engaged in intense discussions about the value of entrepreneurship skills and whether these can apply in diverse industries and sectors. To my mind, a very capable entrepreneur could run other institutions in either the public or third sector. In spite of that, it is clear that people with such diverse skills are few and far between. 

Looking at the story about Andrew Flanagan who runs a children's charity in the UK leads me to the view that it is indeed possible to find people who can cross from private sector firms and into social and policy entrepreneurship.  As Randeep Ramesh of the Guardian states, there are universal principles and good sense that allow for managerial efficiency to lead to improvements. These changes may include staffing, operational issues and financial management. The most profound one though is the very perceptive reasoning that charities should not seek to supplant or supplement government in provision of public services. Flanagan argues correctly that instead, these charities should see themselves as think tanks that generate and test new ideas that may be recommended for wider implementation. 

Implicit in that profound and correct finding is the fact that citizens should require that failure in the provision of public services is sometimes as much a failure of good ideas than the absence of material resources. 

Boom Time for British Think Tanks

A story in the Economist magazine this week highlights the work of a number of new and older think tanks in the UK. The gist of the story is that the recent change in government in the UK has provided opportunity for a number of centre right of centre think tanks to influence policy. This is primarily because there is not only a new policy dispensation but that the magnitude of economic and social problems lend themselves to the adoption of reforms or new ideas.  

As a person who respects ideas, I think that this is indeed an auspicious moment for think tanks and a majority of those mentioned seem to have prepared for a change of government in order to bring forth fresh ideas. Equally impressive is the disclosure of the fact that the time horizons for IEA and Reform are completely different. In addition, they are not only prepared to provide new ideas for policy but are also alert to what they see as "Intellectual incoherence" in policies being accepted by the new government. 

To my mind, it is altogether a positive thing to see slightly dispassionate people dedicate intellectual firepower to a society's problem. And this is important even if not all those ideas are new or necessarily acceptable to me. The most important insight I extract from the piece is the view that perhaps intellectuals and policy wonks make an error by taking government functions as a given.  As the article states, Mr. Littlewood of the IEA thinks that government should have started on a fresh sheet of paper to define what are its functions and then wipe out all other programmes falling outside that remit.  As a Libertarian, I find that quite refreshing. More brainpower to think tanks of the world. 

Closing Vietnam's Think Tank

In my view one indicator of the level of freedom in any country is the number, quality and variety of issues that think tanks do. This is not to argue that there is a causative relationship between the two. This trite point occurred to me today after reading through this short piece in the LA Times. the main point of news in the story is that an independent think tank in Vietnam has opted to close down in response to an unreasonable quest to circumscribe the areas of independent research. The Institute of Development Studies has made a difficult and even arguably bad decision by opting to close down but it is understandable that independent thinkers are distressed by this appalling decree.

It is clear that the government of Vietnam is making a very serious mistake in placing restrictions on the matters that may be made the subject of research in that country. to start with, the most palpable purpose of research is to discover the unknown and clarify knowledge. It is therefore presumptuous for a government to insist that there are only 317 issues that should be subjected to research. I am most impressed with the statement by the IDS in asserting that banning independent thought is the antithesis of scientific endeavour and that open discussion is useful for policy creation.

As a previous visitor to Hanoi, I am disappointed because my assessment was that the country would continue to open up over time. I hope that Vietnam's savvy politicians can justify their reputation for pragmatism and regain my confidence by taking seriously the implications of this decision by a body of scholars to close down the thought factory. As I often quoted from Anthony Fisher before, ideas have consequences.

The Consequences of Antony Fisher's Ideas

Antony Fisher Champion of Liberty by Gerald Frost

My review

rating: 5 of 5 stars
This book should be summed up thus: "Ideas have consequences".

Quite apart from the very interesting life that Antony Fisher led, it is significant that his most important creation is the think tank known as the Institute of Economic Affairs based in London. The book is not lengthy and speaks for itself both about the author and the big idea that led to the establishment of think tanks.

Needless to mention here was a Cambridge University trained engineer, WWII pilot, a poultry rearing businessman and the originator of the idea of the Think Tank. Later, Antony Fisher tried to rear turtles for food and lost a substantial part of his fortune but still did not fail to support transplantation of new think tanks in Europe and the north of America. Granted that the book is written by a real admirer, one does not get the impression that its subject is turned into an icon nor the details of his intellectual or business life exaggerated.

But most important is the manner in which as an entrepreneur of ideas, he made the IEA a success to the surprise of Frederich Von Hayek, who considered that such an idea would not be successful. the reasons for Von Hayek's skepticism are as important as the fact that Antony Fisher defied him. This coverage of the life of Antony Fisher is a far better illustration of the "entrepreneur as a super-hero" (sorry Libertarians) and to my mind, in a more convincing way that Ayn Rand's interesting books which tend to overstate the same facts. Truly, Ideas have consequences.

Fraser Institute Contest on Measurement

I received the communication below from the Fraser Institute and have considered that it is approrpiate for placing on this weblog. It speaks for itself but I find it interesting as it calls for identification of a major public policy issue that does not find good measurement.

The Fraser Institute is launching a new contest to identify economic and public policy issues which still require proper measurement in order to facilitate meaningful analysis and public discourse. We hope you can help promote this contest by posting it on your weblog, Bookish Posts.


The Essay Contest for Excellence in the Pursuit of Measurement is an opportunity for the public to comment on an economic or public policy issue that they feel is important and deserves to be properly measured.

A top prize of $1,000 and other cash prizes can be won by identifying a vital issue that is either not being measured, or is being measured inappropriately. Acceptable entry formats include a short 500-600 word essay, or a short one-minute video essay.

Complete details and a promotional flyer are available at:
http://www.fraserinstitute.org/programsandinitiatives/measurement_center.htm

Entry deadline is Friday, May 15th, 2009.

Sponsored by the R.J. Addington Center for the Study of Measurement.

ECIPE's Blog

There are thousands of blogs that discuss issues of economic theory, policy and public policy. It would seem as if the blogs that should be established are already established. However, this is an area where in spite of the existence of mediocre blogs, there's no loss from the establishment of one that stands above the rest. The blog roll here is representative of some of the best and most popular blogs that i know of too.

European Centre for International Political Economy (ECIPE) has established a new blog on which there will be regular posting from Razeen Sally and Frederik Erixon. So I am glad that there a new blog out there that's worth reading and which I will shortly add to the blog roll for bookish posts. Judging from its name, Trade Matters, one can tell that it is primarily concerned with trade policy and other matters of international goods and services exchange. having encountered Razeen Sally's writings on the WTO and international trade architecture, i am sure that this is one that is worthy of regular reading. the blog is also established at the right time because of the apparent push back in reforms coming from the misinformed view that the financial crisis and subsequent recession is a manifestation of the failure of open markets and liberalized economy.

In my view, the blog is very aptly named for trade really matters and I find it curious that the phrase has two possible meanings. the first is the sense that the subject matter will be trade while the alternative is that trade is essential. Both are true and that's all that matters.