Topic: Cato Publications

That Time We Presented a Bust of Hayek to Yevgeny Primakov in the Kremlin

Crane Presents Hayek Bust to Primakov

Yevgeny Primakov, a Soviet apparatchik who made a very successful transition to the post-Soviet era in Russian politics, has died at 85. He served as speaker of the Supreme Soviet, head of the Russian intelligence service, foreign minister, and prime minister. As Andrew Kramer of the New York Times writes, “With hooded eyes and a gravelly voice, Mr. Primakov struck an image of the archetypal Soviet diplomat and intelligence operative.”

I was in Primakov’s presence once, and that’s the way I remember him. In 1990 Cato held a weeklong conference in Moscow titled “Transition to Freedom: The New Soviet Challenge.” The largest gathering of classical-liberal thinkers ever to take place in the Soviet Union, the event included Nobel laureate James Buchanan, Charles Murray, and numerous Russian scholars and members of parliament. “When Cato’s president Edward H. Crane reminded the large audience that ‘the government that governs least governs best’ … hundreds of Russians clapped and cheered wildly,” the Wall Street Journal reported. “Only a handful of die-hard Communists sat glum-faced, arms folded.” As shown in the photo above, Crane presented a bust of F. A. Hayek to Primakov, then the chairman of the Council of the Union of the Supreme Soviet, as more than 1,000 Soviet citizens attended their first open forum.

Fourteen years later, at another Cato conference in Moscow, Crane reminisced about his encounter:

And it’s been pointed out on numerous occasions at this conference that for civil society to thrive, the institutions of the rule of law, constitutionally limited government, a strict respect for private property and the sanctity of contract, as well as a free and open private sector media are essential. Indeed, there are no great secrets to achieving economic prosperity and a free society, a thriving civil society.

When I was in Moscow for Cato’s 1990 conference, I made that point when I had the privilege of presenting a bust of the great economist and social philosopher F.A. Hayek to Yevgeny Primakov, then chairman of the Council of the Union of the Supreme Soviet. I concluded my remarks by saying, “It is, therefore, particularly appropriate, here in this lavish hotel built exclusively for the Communist Party Central Committee, to acknowledge through the presentation of this bust that Hayek was right and Marx was wrong.”

“It is the Cato Institute’s sincere hope that this bust of F.A. Hayek will rest in a prominent place in the Kremlin where it will remind Mr. Gorbachev and other leaders of the Soviet Union that there are answers, readily at hand, to the problems that beset the USSR.”

Mr. Primakov was gracious in accepting the award, under the circumstances, and said that when he next visited the United States he would present me with a bust of Lenin and that I put it where ever I wanted. I think I know what he had in mind.  

Think Tanks and the Iraq War

As I noted last week, the GOP’s 2016 contenders didn’t do themselves much credit as they ducked, covered, cringed, and pratfell through a series of interview questions about the Iraq War. Still, Jeb Bush had a point when he noted that, at the time, “almost everybody” in political Washington was for the war. True enough: as policy disasters go, the Iraq War was as bipartisan as the subprime loan crisis

On the war’s tenth anniversary a couple of years back, the New Republic’s John Judis recalled “what it was like to oppose the Iraq War in 2003.” His memory jibes with mine: it was pretty damned lonely. Well before “Shock and Awe,” hawkish arguments had achieved near full-spectrum dominance over the minds of Beltway policy elites, and the invasion and occupation of Iraq was shaping up as a horrific idea whose time had come. Hayek Auditorium, December 13, 2001

But it rankled a bit when Judis wrote that “except for Jessica Mathews at the Carnegie Endowment for International Peace, Washington’s thinktank honchos were also lined up behind the war.” Not to take anything away from Ms. Mathews, but the late, great Bill Niskanen had to count as a “think tank honcho” if anyone did, and he opposed the war vigorously, early, and often.

In a December 2001 public debate with former CIA director James Woolsey, Niskanen, then Cato’s chairman, offered the first prominent public statement by a DC think-tank leader against that looming debacle: “An Unnecessary War Is an Unjust War,” Bill argued. In the run-up to the invasion, other Cato scholars argued, among other things, that:

At the time, opposition to the Iraq War was controversial even within the building—and outside of 1000 Massachusetts Ave., Cato’s Iraq War skeptics had very little company among the Beltway cognoscenti. 

Has the GOP Learned Anything from the Iraq Debacle?

GOP Agrees Bush Was Wrong to Invade Iraq, Now What?”—that’s how the US News headline put it last week. A good question, because it’s not at all clear what that grudging concession signifies. It’s nice that 12 years after George W. Bush lumbered into the biggest foreign policy disaster in a generation, the leading Republican contenders are willing to concede, under enhanced interrogation, that maybe it wasn’t the right call. It would be nicer still if we could say they’d learned something from that disaster. 

Alas, the candidates’ peevish and evasive answers to the Iraq Question didn’t provide any evidence for that. Worst of all was Jeb Bush’s attempt to duck the question by using fallen soldiers as the rhetorical equivalent of a human shield. Ohio governor John Kasich flirted with a similar tactic—“There’s a lot of people who lost limbs and lives over there, OK?”—before conceding, “But if the question is, if there were not weapons of mass destruction should we have gone, the answer would’ve been no.” 

That’s how most of the GOP field eventually answered the question, with some version of
the “faulty intelligence” excuse. We thought Saddam Hussein had stockpiles of chemical
and biological weapons and was poised for a nuclear breakout; it was just our bad luck
that turned out not to be true; so the war was—well,
not a “mistake,” insists Marco Rubio, just, er—whatever the word is for something you definitely wouldn’t do again if you had the
power to travel back in time. As Scott Walker, who’s been studying up
super-hard on
foreign policy, explained: you can’t fault President Bush: invading Iraq just made sense, based on
“the information he had available” at the time. 

Well, no—invading Iraq was a spectacularly bad idea based on what we knew at the time. If we’d found stockpiles of so-called WMD, it would still have been a spectacularly bad idea. Saddam’s possession of unconventional weapons was a necessary condition in the Bush administration’s case for war, but it wasn’t—or shouldn’t have been—sufficient to make that case compelling, because with or without chemical and biological weapons, Saddam’s Iraq was never a national security threat to the United States. 

Ukraine: The World’s Second-Highest Inflation

Venezuela has the dubious honor of registering the world’s highest inflation rate. According to my estimate, the annual implied inflation rate in Venezuela is 252%.

The only other country in which this rate is in triple digits is Ukraine, where the inflation rate is 111%. The only encouraging thing to say about Ukraine’s shocking figure is that it’s an improvement over my February 24th estimate of 272%—an estimate that attracted considerable attention because Matt O’Brien of the Washington Post understood my calculations and reported on them in the Post’s “Wonk blog.”

As a bailout has started to take shape in Ukraine, the dreadful inflation picture has “improved.” Since February 24th, the hryvnia has strengthened on the black market from 33.78 per U.S. dollar to 26.1 per U.S. dollar. That’s almost a 30% appreciation (see the accompanying chart). 

Hot Off the Press: April 2015 “Cato Trade” Newsletter

If you don’t yet subscribe to Cato Trade, the monthly newsletter of the Cato Institute’s Herbert A. Stiefel Center for Trade Policy Studies, you can find the current edition here.  Highlighted in this month’s release is Simon Lester’s new paper, Expanding Trade in Medical Care through Telemedicine.  Additionally, you will find Cato trade scholars’ commentaries on the Export-Import Bank; the Trans-Pacific Partnership talks; Investor-State Dispute Settlement (ISDS); Trade Promotion Authority (TPA); and, other important matters of U.S. trade policy.

And here are the links to all previous monthly newsletters:

Spring Regulation Issue: Oil, Obamacare and Tech Innovation

This week, Cato released the Spring issue of Regulation.

The cover article, by economist Pierre Lemieux, argues that the recent oil price decline is at least partly the result of increased supply from the extraction of shale oil.  The increased supply allows the economy to produce more goods. This benefits some people, if not all of them.  Thus, contrary to some commentary in the press, cheaper oil prices cannot harm the economy as a whole.

A related article examines the dramatic increase in crude oil transported by trains and whether additional safety regulation of tank car design should be enacted.  Economist Feler Bose argues that companies have an incentive to reduce accidents to reduce insurance rates.  Thus less-obvious ways to prevent accidents, like better track maintenance, may be more cost-effective and undertaken voluntarily to reduce insurance costs.

The issue has three articles on health policy.  Cal State Northridge professor Shirley Svorny describes how state medical licensure boards do very little to discipline doctors who cause medical errors.  Instead, medical quality is created by the private decisions of individual hospitals to grant privileges to doctors to treat patients and the decisions of specialty boards, such as those that govern cardiology, to certify members as qualified.  A second article concludes that the regulation of electronic cigarettes is likely, even though the evidence for adverse health effects is thin, because a powerful coalition of existing cigarette companies and anti-smoking activists would benefit. A third article examines questionable legal maneuvering by states to implement aspects of the Affordable Care Act (Obamacare).

Finally, two articles describe the regulation of emerging technologies. The first, by Oxford’s Pythagoras Petratos, examines nanotechnology and argues that both the Food and Drug Administration and the Environmental Protection Agency are ill-suited to regulate this complex technology. This bureaucratic burden could slow nanotech innovation in the United States. The second article, by Henry Miller of the Hoover Institution, describes the regulation of so-called “biosimilar” drugs.  Biosimilars are “generic” versions of patented biologic drugs, which are produced by living cells through genetic engineering rather than the chemical reactions used to produce traditional patented and generic prescription drugs.  He concludes that clinical trials will be necessary to prove biosimilarity and thus “biosimilar” drugs will not be cheap like traditional generic drugs.

Learning the History of Liberty from the Encyclopedia of Libertarianism

In an interesting discussion of social change and especially the best ways to spread classical liberal ideas at Liberty Fund’s Online Library of Liberty, historian David M. Hart has high praise for the Encyclopedia of Libertarianism (published by Sage in conjunction with the Cato Institute):

The Encyclopedia of Libertarianism provides an excellent survey of the key movements, individuals, and events in the evolution of the classical liberal movement….

One should begin with Steve Davies’ “General Introduction,” pp. xxv-xxxvii, which is an excellent survey of the ideas, movements, and key events in the development of liberty, then read some of the articles on specific historical periods, movements, schools of thought, and individuals.

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