The 2018 General Meeting of the Mont Pelerin Society will take place from September 30 – October 6, 2018 at ExpoMeloneras and Lopesan Hotels in Meloneras, Gran Canaria, Canary Islands. As with past general meetings, the Mont Pelerin Society is currently soliciting submissions for Friedrich A. Hayek Fellowships. The fellowships will be awarded through the Hayek Essay Contest.
The Hayek Essay Contest is open to all individuals 36 years old or younger. Entrants should write a 5,000 word (maximum) essay that addresses the quotation(s) and question(s) detailed on the contest announcement (available at the above link). The deadline for submissions is May 31, 2018. The winners will be announced on July 31, 2018. Essays must be submitted in English only. Electronic submissions should be sent in PDF format to this email address (firstname.lastname@example.org). Authors of winning essays must present their papers at the General Meeting to receive their award. The essays will be judged by an international panel of three members of the Society.
Please feel free to share this announcement with any individuals who may have an interest in submitting an essay for consideration of a fellowship award. All questions may be directed to the MPS Young Scholars Program Committee by email at email@example.com or phone at +1.806.742.7138.
I find Ayn Rand a fascinating figure in libertarian history, for a number of reasons. Her life style and ways she went about it in her life are so far distanced from me, that made me curious. Some of her philosophical ideas are great, others do not appeal to me at all. I plainly admire her for making the moral case for capitalism and individualism, which stands out in the economist-dominated libertarian tradition.
I am on the one hand annoyed by the way she fostered such cult-like circle of followers, in her own day and after her death in 1982, that led to dogmatism and intellectual isolationism, which goes against all basic academic standards I think are crucial.
On the other hand, I think the people at the Ayn Rand Institute do a great job preserving her legacy and attempting to widen her appeal. Overall, I am convinced that no matter what your take on this fascinating figure or her work is, Rand deserves to be studied in academia, because she remains influential to this day, especially in the US, and left a serious collection of writings that warrant intellectual analysis, even by people who do not consider themselves Randian.
Against this background I made a comparison between mainstream liberal theories of International Relations (IR) and the ideas on world affairs of Ayn Rand. The brief summary of the first is as follows:
The nation is seen as a problematic actor in world affairs. Its room for maneuvering needs to be curtailed, including the importance of the balance of power between states, and the alleged influence of ‘war mongering’ diplomats and the so-called military-industrial complex.
Peace oriented foreign policies can be fostered by domestic institutional arrangements, most notably democracy (democratic peace theory).
In the international realm, there is an important role for intergovernmental and non-governmental organizations, regimes and international law (liberal institutionalism), which aim to overcome or neutralize the effects of the logic of power politics.
International trade is also expected to foster peace, often in combination with the alleged pacifying influence of interest groups and public opinion of foreign policy decision-making.
A recent addition is the broad support for humanitarian intervention.
To keep this blog at readable length I will not go into the details of Rand’s writings, but limit myself to her main views on these ideas, which should be seen in the context of her fierce opposition to the Soviet Union and its allies in the Cold War, and her concern for America losing its super power position through internal causes, not least the loss of the individual liberty-enhancing spirit among the American people.
In contrast to classical liberals from Smith to Hayek, Rand did indeed think that world peace would be attainable, but only in an Objectivist world. Among rational men living according the Objectivist principles there would be a harmony of rational interests. Yet in the current world there was also abundant irrational behaviour, bad morality, and other grounds for dispute.
The main causes of war were not material issues, domestic interests, institutional arrangements, or the structure of the international system. Rather, war was rooted in human nature. It went back to the tribal era, when brute force was the prime rule of conduct. The (socialist) dictatorships were contemporary examples in her mind, with their lack of respect for the rights of their own citizens, and those of foreigners alike. ‘Statism needs war, a free country does not’.
Rand was inconsistent in her valuation of the power of public opinion. She noted that most people often do not want war. Yet the origins of war still lay with those civilians, also in non-democratic regimes, because they failed to reject the doctrine that it was right and justified to achieve goals by physical force. If people put up with a dictatorship like the Soviet Union, or decided not to flee, they were co-responsible for the deeds, and deserved the same fate as their government.
Rand recognized that individuals live in groups or communities, but she regarded respect for tribal roots, ethnicity, and regional languages as uncivil and, above all, irrational and a limit on individual liberty. Ethnicity was also an important cause of war. Nationalism was perhaps less abstract than Marxism, but it was at least as vicious in stirring emotions such as hatred, fear, and suspicion. Therefore rational people would altogether disregard their roots as guides in (political) life.
Rand had two positions on the issues of sovereignty and intervention, depending on the moral character of the nation in question. Sovereignty was a right that had to be earned, but could also be forfeited. If a nation fully respected the principle of individual rights, it’s right to sovereignty was morally secured and should be respected by other nations. However, if a state violated the rights of its citizens it would lose its sovereign rights. ‘A nation ruled by brute force is not a nation, but a horde, whether led by Atilla, Genghis Khan, Hitler, Khrushchev, or Castro.’
Dictatorships were outlaws and could therefore be invaded as a matter of choice for the free nations, although there was no duty to do so. The right to self-determination and sovereignty only existed for free nations, and for societies seeking to establish freedom.
Yet this way, anarchy loomed. Rand divided the world into three groups of countries. First, countries complying to the Objectivist principles, with full sovereign rights. Second, countries on their way to freedom, often referred to as ‘mixed economies’, or half-way houses between freedom and dictatorship. Third, countries not worth existing, such as dictatorships and tyrannies. Unfortunately, the world lacked fully free countries. The mixed economies did not have unlimited right of intervention, they could only interfere when another country seriously breached Objectivist principles, for example by establishing one party rule, enacting censorship laws, executing people for political offences without trial, or nationalizing or expropriating private property.
Rand acknowledged the perpetual influence of power in world politics. The character of international politics was, and always had been among states, a balance of power game.
The US army was under domestic, non-patriotic attack for its virtues, for being a competent and strong force. It was unwise to cut the defence budget, while -in another contrast to liberal IR thought- ‘the military-industrial complex’ was ‘a myth or worse’.
Statism at the international level, in the form of ‘a planetary community’ and other cosmopolitan ideas had to be rejected. The collaboration of semi-free countries with communist dictatorships in the UN was evil and stood in contrast to reason, ethics, and civilization. The UN provided the Russian camp with prestige and moral sanction, suggesting that ‘the difference between human rights and mass slaughter is just a matter of opinion’.
Another point of contention with the social liberals was development cooperation. Foreign aid was nothing but ‘altruism extended to the international realm’.
While, in contrast to social liberals, she lacked faith in international law as such, Rand did regard international treaties as firm obligations.
Also, Rand saw peaceful effects of laissez-faire capitalism, because it was based on the recognition of self-interest by free individuals and the non-initiation of force. Capitalism fostered a society of traders. Therefore the essence of Objectivist foreign policy had to be free trade.
To briefly sum up: Rand’s writing show that not all liberals are peace-seeking cosmopolitans, attempting to minimise the role of the nation, the balance of power, the military, and warfare in international relations. She rejected most forms of international governmental organization and other expressions of liberal institutionalism. Often her ideas lack sufficient (legal) detail, while they are also centred on America, and hence limited to the perspective of an influential super power with large military capacity. Yet her writings show that fostering liberty in international relations can be done in several ways, and that different liberals have different ideas about the route towards that goal.
This week I got the happy news that my article on Ayn Rand’s views on international relations was accepted for publication. Once it is posted ‘online first’, I shall write a bit about its content. For now I would like to make a two other points, though.
One of the reason for my happiness is that this article took an exceptional time to get accepted. I started working on it in 2010, doing the initial reading (in this case all published works of Ayn Rand). The actual drafting started in 2011, I solicited commentary, and came to an acceptable first version in 2013. To be sure: I did not work on the paper on a full time basis, and there were many other distractions, not least my day time job, other academic projects, and family affairs. Still, the article kept nagging in the back of my head, perhaps not daily, but certainly on a weekly basis. I got the first few rejections by journals in 2013, then again a few in 2015, and another one this summer. So reason enough to be happy to get accepted and all the more exciting to see it through the production phase in the coming months, with actual printed publication still in the somewhat distant future.
I am not writing this to congratulate myself in public. My reason for this blog is to show young (aspiring) scholars, that it is completely normal to work on a project for ages, and to get rejected a few times. Yet the reward is sweet. As long as you persevere, are ready to change and edit your text, overcome your anger when you get unjust blind reviews (and believe me: writing on Rand regularly solicits angry, malicious and/or erroneous responses, also from editors and reviewers of high ranked reputed journals), and keep the faith in the possible value of your modest contribution to the world’s knowledge base.
This is a lesson I learned from experience in the past decade or so. But early on, I also greatly benefitted from one of the best and useful guides to PhD research and academic life I have ever come across: LSE professor Patrick Dunleavy’s Authoring a PhD. It realistically describes what to expect of academic life, it’s ups and also it’s downs. So get it, if you are still unsure what to expect of academic life.
The other remark I would like to make is about the unique and open character of academic publishing. It is really great, as a part-time academic, to be able to get published in reputable journals. I am sure the editors of journals and presses are more keen to see academics from highly reputed universities submitting papers and book manuscripts. Yet they first and foremost value content. If you have something interesting to say, and live up to the academic standards, you will get the same chance and treatment as everybody else. That is pretty unique, compared to many other professions.
Last week, Stockholm hosted a special meeting of the Mont Pelerin Society (MPS) on the populist threats to the free society. MPS meetings are held under Chatham House rules, which means I cannot report in any detail about the proceedings. Yet a few impressions can be shared.
I have been a MPS member since 2010, when my nomination was accepted at the end of the general meeting in Sydney. In those days the old rules still applied, which meant you had to attend three meetings before you could be nominated for membership. However, this strict rule led to the erosion of the membership base (the MPS was literally starving out), so the rules to join as a member have been made easier.
My first MPS meeting was in Guatemala City, in 2006. I had participated in the essay contest for young scholars which is always organized in the run-up to the bi-annual General Meetings. As a runner-up I won free entry to the meeting. I happened to be in the south of the USA in the weeks before, doing PhD research at the Mises Institute in Alabama, so could easily make the trip to Central America. Because I lived in Manila during those years, I could also easily attend the 2008 meeting in Tokyo.
I had are number of reasons for wanting to join the MPS. First of all, the quality of the meetings offer a great chance to listen to and speak with the leading scholars within current classical liberalism. Increasingly multidisciplinary (back in the old days the economists dominated), the programme committees of the MPS Meetings always succeed in attracting an impressive crowd of high quality speakers and commentators from across the globe. I always find this a great intellectual treat. Second, the meetings are characterized by extremely pleasant and open atmospheres. Everybody mingles with everybody, you can talk with everybody, no matter your age, or academic background. Thirdly, the meetings take place across the globe, so they offer a great opportunity to travel and see places. Although it must be added that even when you do not stay at the conference hotel, the meetings are never very cheap, so it remains an investment. Fourth, for a Hayekian like myself, it feels very good to be a member of the society founded by the master himself, which had and has such an illustrious membership, ever since its beginnings 70 years ago.
Besides the big one week General Meetings held every two years, there are shorter regional or special meetings in the other years. Last week’s MPS meeting in Stockholm was a special meeting, very well-organized by the Ratio Institute. The theme was discussed from numerous angles, through sessions on Russia’s foreign policy, the economic issue of secular stagnation, or the danger of political Islamism. Two sessions were focused on new classical liberal ideas to counter the threats. At the opening day there was a session for young scholars to present papers. This was of course also a way to attract new talent and interest in the MPS. And at the end of the second day there was something different: beer tasting while listening to Johan Norberg. A rather splendid combination!
The speakers and commentators were high level, including MPS chair Peter Boettke (George Mason), David Schmidtz (Arizona), Deirdre McCloskey (Illinois), John Tomasi (Brown), Leszek Balcerowic (former president of Poland’s Central Bank), Russia specialist Anders Aslund, German thinker Karen Horn, Jacob Levy (McGill), Mark Pennington (Kings College London), Paul Cliteur (Leiden), Amigai Magen (Hoover Institution), and the energetic Ralf Bader (Oxford). A lineup like this guarantees a number of new insights, solid arguments, and general intellectual stimulus. Many answers were provided, yet in true academic fashion, many questions remain.
While well represented in this program, International Relations are normally a minor topic at MPS meetings, and there are not many IR scholars around (nor are sociologists or legal scholars, by the way). Personally I am convinced that the future appeal of classical liberal thought also relies on taking into account world affairs. So there is a need to keep on writing and publishing about it, to expand the basis for thought, also in the MPS. To hear about the concerns and insights of other classical liberals in other disciplines helps my thought process, besides remaining up to speed with current classical liberal issues in general.
So it was a great meeting again, And for all you young scholars out there: if you are interested make sure to regularly check the MPS website (www.montpelerin.org) to see if there are opportunities to participate in one of the upcoming meetings.
Yesterday, both Houses of Dutch Parliament jointly opened the parliamentary year, which is always held on the third Tuesday in September, and is known as “Budget Day.” Normally, there is not much pomp and glory in the Low Lands, but on “Little Princes Day” (as the day is literally called), we go all-out: the King and Queen are driven in a horse-pulled carriage to the Hall of Knights, the oldest part of the parliamentary buildings (built around 1250), surrounded by military troops in full ceremonial dress. The King reads his speech (actually written by and under full political responsibility of the Prime Minister and cabinet) from a huge throne, announcing the government’s plans for the next year. Male ministers in morning coats, ladies in dresses and hats, with the powerful elites also assembled.
After the reading, the Royal couple make their way back to one of their palaces in the centre of The Hague, returning once to greet the masses from the balcony.
Meanwhile, the Minister of Finance officially presents the 2018 budget to the Lower House. The separate budgets of all departments are laws, which will have to pass both Houses before 31 December. This process is normally preceded by a two day debate on “the general state of the country,” but this year it is skipped because there is only a caretaker government in office. It awaits the finalization of negotiations for a new government, which started right after the elections on 15 March. Still no government is formed, although it is widely expected that a four-party coalition will be presented within a few weeks, consisting of small Christian left wingers, centre Christian Democrats, and two social liberal parties, D66, and Prime Minister Mark Rutte’s VVD.
Although much improved since the low point of the Great Recession, around 2011-2012, the public finances are still shocking from a classical liberal perspective. The income of the national government is 285 billion Euro (around 338.5 billion USD), which is 43% of GDP.
It consists mainly of several mandatory insurance premiums for collective arrangements (112.2 billion Euro), income tax (55.4 billion; the highest bracket of 51.5% tax applies to all personal income over 68.507 Euro), and VAT (52.8 billion). The rest are mainly specific taxes, related to companies, the environment, excises, dividends, et cetera. In 2011, the public share of GDP was still 47%, while in the 1980s it reached peaks of around 60%. Not exactly anywhere near an ideal liberal situation, no matter what liberal persuasion you are. Personally, I would argue that 25% should be the max for a decent set of state tasks, but I am sure that makes me some weird Northern European commie in some American libertarian eyes!
The situation is even more dire if we see where that money is spent. Health care (80.4 billion euro) and social security (79 billion) are always in competition as the largest spending departments. So that is 56% of the budget already and both increase annually, no matter the economic circumstances. The third post is public education (35.4 billion), followed by funds for provinces and municipalities (24.4 billion), foreign affairs and foreign aid (12), police and judiciary (10.3), defense (8.4), and infrastructure and environment (also 8.4), with the other departments taking parts of the rest. Despite a very rare expected budgetary surplus of 7.8 billion in 2018, the national debt is still 53.7% of GDP. Perhaps not bad in international comparison, still not good for any liberal.
These numbers are only part of the story, because there are also numerous local taxes, and the number of liberty-inhibiting regulations, from European, national, provincial and local origin are staggering. There is not one really free market, and there are hardly parts of individual life not regulated or influenced by the state. A comparison with North Korea is of course still far-fetched, yet socialism is alive and kicking on the North Sea shores.
In my view it is evidence of the remarkable power of capitalism that The Netherlands is still one of the richest countries on earth, a global top 15 economy (GDP per capita), with only 17 million inhabitants. No matter how hard you curb it, the capitalist system still delivers amazing results. Of course, the opportunity costs of the Dutch regulatory state are very high. In terms of personal liberty there are not many better places on the planet. Yet in other fields it is a different story. Economic freedom is a mess, which means that the material aspects of personal freedom are seriously restricted. Yet the worst is the mentality. Sadly, most Dutch have traveled the whole Hayekian Road to Serfdom, making a shift to classical liberalism highly unlikely.
Most scholarship on Ayn Rand has been of mediocre quality, according to Gregory Salmieri, the co-editor of A Companion to Ayn Rand, which is part of the series “Blackwell Companions to Philosophy.” The other co-editor of the volume is the late Allan Gotthelf, who died during it’s last preparatory stages.
The reasons for the poor scholarship are diverse. Of course Rand herself is a large element. She hardly ever participated in regular academic procedures, did not tolerate normal academic criticism on her work and strictly limited the number of people who could authoritatively ‘explain’ her Objectivist philosophy to herself and Nathaniel Branden. Before her death she appointed Leonard Peikoff as ‘literary heir’. She inspired fierce combat against the outside world among her closest followers, especially when others wrote about Rand in a way not to their liking. The result was that just a small circle of admirers wrote about her ideas, often in a non-critical way.
On the other hand, the ‘rest of the academy’ basically ignored her views, despite her continued popularity (especially in the US), her influence, particularly through her novels, and large sales, especially after the economic crisis of 2008. For sure, Objectivists remain a minority both inside and outside academia. Yet despite the strong disagreement with her ideas, it would still be normal to expect regular academic output by non-Randians on her work. Suffice it to point to the many obscure thinkers who have been elevated to the academic mainstream over the centuries. Yet Rand remains in the academic dark, the bias against her work is strong and influential. This said, there is a slight change visible. Some major presses have published books on Rand in the past years, with as prime examples the books by Jennifer Burns, Goddess of the Market: Ayn Rand and the American Right (2009), and Anne C Heller, Ayn Rand and the World She Made (2010). And this volume is another point in case.
One of the strong points of The Blackwell Companion on Ayn Rand is that the contributions meet all regular academic standards, despite the fact that the volume originates from the Randian inner circle. It offers proper explanation and analysis of her ideas and normal engagement with outside criticism. The little direct attack on interpretations or alleged errors of others is left to the end notes, albeit sometimes extensively. Let us say, in friendly fashion, that it proves hard to get rid of old habits!
It should not detract from the extensive, detailed, clearly written and plainly good quality of the 18 chapters in this companion, divided in 8 parts, covering overall context, ethics and human nature, society, the foundations of Objectivism, philosophers and their effects, art and a coda on the hallmarks of Objectivism. The only disadvantage is the large number of references to her two main novels, The Fountainhead and Atlas Shrugged, which makes some acquaintance with these tomes almost prerequisite for a great learning experience. Still, as a non-Randian doing work on her political ideas, I underline that this companion offers academically sound information and analysis about the full range of Rand’s ideas. So, go read it if you are interested in this fascinating thinker.
Now that the Dutch elections for the Lower House are over, as well as the unprecedented international hype surrounding it, it is time for a few pointers and reminders.
Prime Minister Mark Rutte used the crisis with Turkey to his greatest advantage. When the crisis just loomed he escalated, helped of course by the increasingly hysterical reactions of the Turkish authorities, particularly the President.
I have not been able to get figures, but it is rather normal for foreign ministers, including from Turkey, to visit the Netherlands and address their nationals, also for political purposes. This is just the consequence of allowing Turkish people to have dual nationality and -in the Turkish case- also double voting rights. With the referendum in Turkey coming up, it is only logical to allow proponents and opponents to campaign as well.
This said, any thinking person would strongly object to the plan to give even more power to the already way too powerful Turkish executive. Dictatorship looms (please read Barry’s much better informed blogs on this).
Politicians almost always choose the short term over the long term. Certainly four days before elections. Still, the downside of Rutte’s actions are immense, as they also serve the interest of Erdogan, enabling him to play the victim of the ‘racist Dutch’. It might even pull the deciding number of voters into his camp. That would be bad for Turkey, and for Europe.
Chances for Turkey joining the European Union were already small, but have now disappeared completely. (Which I personally do not mind much, but others differ, including many in Rutte’s own party).
Another topic of international concern surrounding the election was the rising populism and its alleged ending by the electorate at the ballot box. Indeed, Geert Wilders’ Party for Freedom did not become the biggest party, yet he did win votes again. An increase of a third actually, from 15 to 20 in the 150-seat Lower House. His party thus became the second largest party in parliament.
He was never going to be Prime Minister anyway, as all parties had said before the elections they would not collaborate with him. This was important as the Dutch electoral system has a low threshold, which means many parties can enter parliament and no party has ever won a majority of 76. It demands parties to negotiate a governing coalition. After Wednesday at least four parties are needed for such a majority, which will take months.
There is a less-noted, other ‘bad populism’, which includes the largest winner, the Green Left party. This party represents are the radical environmental left, led by a young good looking leader who has been able to attract a lot of young people, in particular women, according to electoral research. There are also other populist parties elected, most notably the party for pensioners, the Islamic party DENK, and the Forum for Democracy, the intellectual version of Geert Wilders’ party.
It remains to be seen whether Green Left will get a seat in government, given the large differences with the other parties who will be negotiating the new government: the centre right VVD of Rutte, the social liberals of D66, and the Christian democrats.
This process is slow and boring for most people, except for political junkies like myself. So chances are you will not hear about Dutch politics until a new government has finally been installed. Do not be surprised if this does not happen before Christmas.