Liberalism, Rule of Law

and Civil Society

Bienvenido “Nonoy” Oplas Jr.

Minimal Government Thinkers, Inc.

Manila, Philippines

Forum at Trisara Restaurant

Pokhara, Nepal, 12 January 2015

Occasional Lectures on Markets and Business

OUTLINE

I. The book

II. F. Hayek, liberty and rule of law

III. Local government and civil society

IV. Liberalism, socialism and conservatism

V. Raison d ‘etre of government

VI. Minarchy vs. anarchy

VII.Pork barrel scandal and liberalism

VIII.Concluding notes

1. The Book

• My 2nd book, an e-book,

published by the Friedrich

Naumann Foundation for

Freedom (FNF) Philippine Office,

2014

• Freely available here,

http://fnf.org.ph/epub/

• 7 chapters, nearly 300 pages

including illustrations

• Collection of my essays and blog

articles from 2005-2013,

updated, revised and edited

2. F. Hayek, Liberty and Rule of Law

• Reflections on some chapters of Friedrich

Hayek’s book published in 1960

• Roundtable discussion whole day about the

book held in Phuket, Thailand, 2005,

sponsored by the Atlas Economic Research

Foundation and FNF, a day before the

Economic Freedom Network (EFN) Asia

conference, held at same hotel

• Moderated by famous modern

classical liberal scholar, Leonard

Liggio (RIP) of Atlas

• Participants were Charu (Nepal),

“Hayek of China” Liu, “Hayek of

Korea” Kim, others from Japan,

Pakistan, Vietnam, India, Georgia,

Malaysia, Cambodia, Phils.

"Liberty is essential in order to leave room for the

unforeseeable and unpredictable. Because every individual

knows so little that we trust the independent and competitive

efforts of many to induce the emergence of what we shall

want when we see it.― (Ch. 2)

“While the uses of liberty are many, liberty is one. Liberties appear only when liberty is lacking. Difference between liberty and liberties -- that which exists between a condition in which all is permitted that is not prohibited by general rules and one in which all is prohibited that is not explicitly permitted…” (Ch. 1)

―The aim of assigning responsibility is to make man

different from what he is or might be… The knowledge

that he will be held responsible will influence a person‘s

conduct in a desirable direction. Assigning of responsibility

makes people observe certain rules.‖ (Ch. 5)

―In the long run, the existence of

groups ahead of the rest is

clearly an advantage of those

who are behind, in the same

way that, if we could suddenly

draw on the more advanced

knowledge which some other

men on a previously unknown

continent or on another planet

had gained under more

favorable conditions, we would

all profit greatly.‖ (Ch. 3)

―By ‗law‘ we mean the general rules that apply equally to

everybody…

Even general, abstract rules, equally applicable to all, may possibly

constitute restrictions on liberty. But this is unlikely. The chief

safeguard is that the rules must apply to those who lay them down

and those who apply—that is, to the government as well as the

governed – and that nobody has the power to grant exceptions.‖

(Ch. 10)

―The great aim of the struggle for

liberty has been equality before

the law… Equality of the general

rules of law and conduct,

however, is the only kind of

equality conducive to liberty and

the only equality which we can

secure without destroying

liberty… (which) is bound to

produce inequality in many

respects… ― (Ch. 6)

―That any law should apply equally to all. General and equal

laws provide the most effective protection against infringement

of individual liberty. It is this fact that all rules apply equally to all,

including those who govern, which makes it improbable that any

oppressive rules will be adopted.‖ (Ch. 14)

Recap:

* Liberty means absence of coercion.

* Freedom is inseparable from responsibility; fear of

responsibility is fear of freedom itself.

* Equality before the law; the law applies equally to unequal

people.

* Rule of law means no exception. No one is exempted and no

one can grant an exemption.

3. Local Government and Civil Society

• Attendied the International Academy

for Leadership (IAF) seminar on

“Local Government and Civil Society”,

Theodor Heuss Akademie (THA),

Gummersbach, Germany. Sponsored

by the FNF

• Participants from Asia, S. America,

Africa and E. Europe

―Subsidiarity is an organising principle of decentralisation,

stating that a matter ought to be handled by the smallest,

lowest, or least centralised authority capable of addressing

that matter effectively. The Oxford English Dictionary

defines subsidiarity as the idea that a central authority

should have a subsidiary function, performing only those

tasks which cannot be performed effectively at a more

immediate or local level.‖

-- Wikipedia, accessed on October 28, 2013

Decentralization of power, from the central or national

government to the sub-national or local government,

affirms the beauty of the principle of subsidiarity. People

see the inefficiencies and impracticality of central planning

under a socialist or highly welfarist state.

Competition is happening among local governments.

.

“Deregulation” does not mean abolition of all regulations,

only reduction of too many regulations and permits,

liberalizing the economy to facilitate entry of new players.

“Demonopolization” does not mean abolition of the

incumbent monopoly corporation, only allowing other

players to compete with the existing monopoly.

“Degovernmentization” does not mean abolition of the

government, only reduction of functions, responsibilities

and bureaucracies, national/central government and local

governments, giving more responsibilities back to citizens

as individual, parental and civil society responsibilities.

.

There will be a “lean state” where state structure exists

only where it is absolutely necessary, and the state at

any level is not carrying out any task and duty which

private businesses or citizens can do for society.

.

Civil society is the final

stage of a functioning

local government. If all

means of

decentralization,

deregulation and

privatization have been

implemented, citizens

have been involved as

comprehensively as

possible, civil society has

emerged.

4. Liberalism, Socialism and Conservatism

• Authoritarianism and its

cousin ideologies have deep-

seated belief that people are

irrational if left alone and can

be destructive and

conspiratorial against their

fellowmen.

• Democratism despises this

idea, danger of abuses.

Thus, the political will of the

majority over the minority.

• Liberalism shares with democratism in rejecting

authoritarianism, but it does not believe that individual

liberty should be sacrificed at the altar of national or

collective liberty. The primacy of individual liberty and

responsibility is at the heart of this political philosophy.

• Lao Tzu or Laozi (600 BC), considered

the first intellectual in China and the

world (he came earlier than Plato),

championed individual liberty.

• ―The more restrictions and limitations

there are, the more impoverished men

will be... The more rules and precepts

are enforced, the more bandits and

crooks will be produced.‖

• ―Through my non-action, men are spontaneously

transformed.

Through my quiescence, men spontaneously become

tranquil.

Through my non-interference, men spontaneously

increase their wealth.‖

People in general are rational and not violent. But there are

exception, like dictators, bureaucrats and autocrats.

"The characteristic feature of modern

capitalism is mass production of goods

destined for consumption by the masses.

The result is a tendency towards a

continuous improvement in the average

standard of living, a progressing

enrichment of the many. Capitalism

deproletarianizes the 'common man' and

elevates him to the rank of a 'bourgeois'.

"On the market of a capitalistic society the common man is the

sovereign consumer whose buying or abstention from buying

ultimately determines what should be produced and in what quantity

and quality...

Wealth can be acquired only by serving the consumers. The

capitalists lose their funds as soon as they fail to invest them in

those lines in which they satisfy best the demands of the

public.‖

"To cure the British disease with

socialism was like trying to cure

leukaemia with leeches.

We want a society where people

are free to make choices, to

make mistakes, to be generous

and compassionate. This is

what we mean by a moral

society; not a society where the

state is responsible for

everything, and no one is

responsible for the state.‖

―I came to office with one deliberate intent: to change Britain

from a dependent to a self-reliant society -- from a give-it-to-

me, to a do-it-yourself nation. A get-up-and-go, instead of a sit-

back-and-wait-for-it Britain.‖ (February 1984)

5. Raison d ‘etre of Government

“Raison d’etre” = reason for

existence

If raison d’etre of government is to

provide only services B or C, yet

government spent up to services D

and E, even if “zero stealing”

happened, it’s still corruption

because more tax money were

confiscated from the citizens to

spend on sectors that do not deserve

to be subsidized forever.

Chart from James Buchanan’s book, “The Calculus of

Consent” (1962).

“Every individual...generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it…. he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention.” --TWN, Book IV Chapter II “It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our necessities but of their advantages.” -- TWN, Book I Chapter II

The whole, or almost the whole public revenue, is in most countries employed in maintaining unproductive hands... Such people, as they themselves produce nothing, are all maintained by the produce of other men's labour... Those unproductive hands, who should be maintained by a part only of the spare revenue of the people, may consume so great a share of their whole revenue… all the frugality and good conduct of individuals may not be able to compensate the waste and degradation of produce occasioned by this violent and forced encroachment. -- TWN, Book II, Chapter III

First row: G. Washington, Tacitus, Einstein. Second row: P.J. O'Rourke, Doug Casey, Ludwig von Mises. Third row: H.L. Mencken, Benjamin Franklin, Barry Goldwater. Government is not reason; it is not eloquent; it is force. Like fire, it is a dangerous servant and a fearful master. – G. Washington The more numerous the laws, the more corrupt the society. - Tacitus "Never do anything against conscience even if the State demands it." - Einstein

A little government and a little luck are necessary in life, but only a fool trusts either of them. -- P. J. O'Rourke. Foreign aid might be defined as a transfer of money from poor people in rich countries to rich people in poor countries.- Doug Casey

“Social contract" theoreticians: Hobbes, Locke, Rousseau. A. Smith, below right, added. Thomas Hobbes In the beginning, there was no state, no law, othing is right or wrong. Everyone is free to do as he pleases. Life was nasty, short and brutish. Civilization was not possible in this “state of nature.” Submission to authority, have laws, will result in a life better than that John Locke: contract between people and government, it should protect the life and property of citizens. Failure to do so is a simple breach of contract. sovereign people have the right to rebel against abusive "servant.”

Jean Jacques Rousseau people being "forced to be free” but also concerned with individual freedom can be incompatible with authority of the state.

―… for if everything is considered

carefully, it will be found that

something which looks like virtue, if

followed, would be his ruin; whilst

something else, which looks like vice,

yet followed brings him security and

prosperity.‖ -- Chapter XV, The Prince

―seeing that with his economy his revenues are enough, that he

can defend himself against all attacks, and is able to engage in

enterprises without burdening his people; thus it comes to pass

that he exercises liberality towards all from whom he does not

take, who are numberless, and meanness towards those to

whom he does not give, who are few.‖ -- Chapter XVI:

6. Minarchy vs. Anarchy

7. Pork Barrel Scandal and Liberalism

• “Million March” in Manila, August 26, 2013. Unique because it was largely spontaneous, no central leader or central plan.

• Not directed against a particular leader but against corruption in general and corrupt govt. officials especially among legislators

8. Concluding Notes

"A great civilization is not conquered from without until it has destroyed

itself within. The essential causes of Rome‘s decline lay in her people, her

morals, her class struggle, her failing trade, her bureaucratic despotism,

her stifling taxes, her consuming wars." – Will Durant