Essays from our participants

2010-07-28T07:31:00.000-07:00

Dear friends-liberals and especially participants of the Liberal Camp’10!

As you know there is possibility to post your essays or some of your articles in our blog. Meet the first essay written by one of our participants Alexander Dovgan!

The world economic crisis: the crisis of the State Administration or the liberal economy?

by Alexander Dovgan

Although I have chosen this topic, in my opinion the formulization of a question is quite nonsensical. I will strive to explain why. When we are discussing the consequences of the world financial crisis we usually and in some cases even subconsciously appeal to a certain framework, that grounds on our personal knowledge, both collegiate and practical. And this attitude results in precisely this type of questions. Questions that imply an attempt to look at the world financial crisis 2007-2010 as at the intermixture of mistakes, made by different entities, but not as at the entire happening and historical phenomenon.

I would rather all we, while investigating this extremely complicated scene, stressed that, since it is a historical phenomenon, it has several dimensions: social, political, philosophical, legal and economical.

There is a classical phrase that fits very well to characterize this phenomenon: “a world historical event”. And I venture to acknowledge that this is how it will be referred to centuries later.

It is without a doubt a “word” event as we can see from reaction of all governments of developed countries, heads of various international organizations and just influential businessmen, politicians and so forth. This event will surely serve us as a significant visual aid of the complexity of all interrelations in contemporary world. This “world” event clearly revealed not only the interconnectedness of national economies and political forces, but also a various moral beliefs that capitalism had implied. It is still hard to realize how a chain of defaults on sub-prime mortgages in certain states in USA have set up a significant process, that have concerned with shocking ferocity practically every sphere of life.

When talking about “historical” aspect, it is important to notice that it raises some vital questions, starting from “Is there something radically new about this crisis?” and finishing with “How should we interpret its mechanisms and particular moments in terms of the history of the liberal thought?”

It is obvious that economics alone does not cover all dimensions touched by crisis. It is probably impossible to cover all them within any existing methods, so let us focus on liberal analysis, at once historical and systemic.

Market economies are not built up exclusively or even chiefly on economic theories, they cover also large variety of aspects, such as question of fairness, distinguishing right and wrong, good and evil and so forth.

Concerning political, ethical and philosophical underpinnings of liberalism, we can enumerate most valuable characters in historical sequence: Socratic, Platoon, Aristotle, Livius, Tacitus, Cicero, Spinoza , Jean-Jacques Rousseau, John Locke, Montesquieu, Thomas Jefferson, David Hume; and rethink their contribution, we will see clearly some certain framework that underlies today’s social mode, and can be expressed with such statements:

The concept of liberalism permits implies clear understanding of human imperfections;

Concerning economic liberalism: the restricted benevolence of human beings, as well as the permanent scarcity of resources sufficient to satisfy human needs together result in the appearance of the basic principles of justice.

The epochs of human history would culminate in a free market economy, but government should assume tasks that could not be entrusted to the profit motive, such as preventing individuals from using force or fraud to disrupt competition, trade, or production (Adam Smith).

All these fundamental statements have been affected by crisis and while their relevance is unquestionable there is a big concern about ways of fulfilling them within the new, post-crisis economy.

The first serious response to the consequences of the world economic crisis was enacting The Emergency Economic Stabilization Act of 2008, commonly referred to as a bailout of the U.S. financial system, a law that authorized the United States Secretary of Treasury to spend up to US$800 billion to purchase distressed assets and make capital injections of liquidity into banks.

I will venture to acknowledge that this step was controversial in terms of using taxpayers’ money on covering banker’s and government’s mistakes. And that was the first serious experience for the society of reassessment its fundamental values.

And it has taken a right, constructive decision, oriented on hard working mutual reliance, self-devotion up to self-sacrifice in order to rebuilt economy without sacrificing liberal values by means of fighting such negative but nevertheless sustainable features as greed, envy, and permanent distrust.

In this case I will venture to acknowledge that although the world financial crisis was the result of multiple mistakes and systemic tensions both in market economy and mechanisms of state regulations, both these institutions will survive, becoming more sufficient and grounded more distinctly on basic liberal values.

Speakers of the camp

2010-07-27T08:07:00.000-07:00

Jaroslav Romanchuk

Jaroslav Romanchuk (born January 10, 1966) is a Belarusian libertarian economist and politician. He currently works as President of the Scientific Research Mises Center and is Deputy Chairman of the United Civil Party of Belarus.
Jaroslav Romanchuk graduated from the Minsk State Pedagogical Institute of Foreign Languages in 1991 and finished postgradual doctoral studies at the Belarusian State University. He later studied at various educational programmes abroad.In 1994 Romanchuk joined the liberal United Civil Party where he was advisor to Chairman of in 1996 - 2000. Since April 2000 Romanchuk is Deputy Chairman of the party. From December 1995 till December 1996 Ramanchuk worked at the Supreme Council of the Republic of Belarus as a senior economist at the Commission for economic policy and reforms.In 2002 the Mises Scientific Research Center was created at the Analytical Center «Strategy» in Minsk with the aim to promote liberal values and free market economy.
Jaroslav Romanchuk has over 1000 publications on economic problems (pension reform, effectiveness of state poverty programs, comparative analysis of social economic models, crisis of welfare state in the West etc.) in various mass media.He is the prize-winner of the Atlas Economic Research Foundation Sir Anthony Fisher Award 2006, winner of Templeton award 2006, 2007; winner of International Society for Individual Liberty Marshal Bruce Evoy award for promoting liberty in the world (2003). Romanchuk is participant of numerous conferences both in Belarus and abroad, author of Concept of Pension Reform for Belarus, alternative Budget and Tax system for Belarus, Law on Privatization, law on social security and other pieces of legislation. Chairman of the working group on social economic program of joint democratic forces of the Republic of Belarus (2005 – 2008). Author of National Business Platform for business in Belarus 2006-2007, NBP-2008.

Oleksandr Iarema

Oleksandr Iarema was born on 23.03.1974 in Uzhgorod, Ukraine. In 1991 he left Uzhgorod for Kyiv where he entered National Agrarian University with a major of Engineer-landmanager. In 1997 he joined Ukrainian National Council of Youth Organizations. He was responsible for development and cooperation of regional bodies. From 2000 to 2001 he was working for State committee of youth policy, sports and tourism. He was in charge of youth and children organizations. In 2001 he joined Ukrainian foundation of support of reform (liberal think tank organization headed by former Minister of Finance of Ukraine). From 2005 to 2007 Iarema worked for Ministry of family, youth and sports where he occupied the post of youth policy department Director and dealt with preparation and fulfillment of youth policy. In 2007 Iarema graduated from National Academy of Public Administration as MPA. From 2007 up to present he has been working for Ukrainian foundation support of reform in the position of Executive director. His hobbies include traveling, reading and mountain skiing.

Liberal Camp in Ukraine'10

Essays from our participants

Speakers of the camp