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2009-11-17 FNF PAK - Liberalism And Global Financial Crises

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Presentation on the work of FNF, Liberalism and the global financial crises at the University of Central Punjab in Lahore, Nov. 17 2009

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2009-11-17 FNF PAK - Liberalism And Global Financial Crises

  1. 1. Liberalism & Global Crises University of Central Punjab, 17. Nov. 2009 Olaf Kellerhoff Resident Representative Pakistan
  2. 2. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Overview 1. Friedrich Naumann Foundation working for Freedom in Pakistan since 1986 2. Liberalism – a history of thoughts political philosophy based on equality 3. Liberalism & Global Financial Crises Are you strong enough to be free? Friedrich Naumann (1860–1919)
  3. 3. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Resident Representative Pakistan Olaf Kellerhoff Islamic History + International Relations (MA) at Hamburg Univ. Missions & Experiences abroad Somalia Marocco Turkey Kosovo (3x) Afghanistan (3x) Lebanon Apprenticeship as photographer
  4. 4. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 1. FNF
  5. 5. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Founding a foundation: President Heuss First president of the Federal Republic of Germany, Theodor Heuss (1884–1963), founded the endowment 1958 Heuss named the foundation after his mentor Friedrich Naumann Theodor Heuss – lifelong liberal: founding member of the Free Democratic Party (FDP) and its first chairperson 1. FNF 2. Thoughts 3. Global Crises
  6. 6. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Changing this world Naumann = protestant priest confronted with social question in Hamburg at an orphanage Getting active – liberalism as solution: published a magazine founded a party became MP parliamentarian, politician, Friedrich Naumann (1860–1919), philosopher – mastermind seen by Max Liebermann 1. FNF 2. Thoughts 3. Global Crises
  7. 7. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Friedrich-Naumann-Stiftung für die Freiheit Founded 1958: civic education for Germans regional offices in the provinces Liberal Institute (LI) think tank Scholarship department International Academy for Leadership (IAF) Headquarters in Potsdam (Germany), Jan. 2009 since 1963 abroad 1. FNF 2. Thoughts 3. Global Crises
  8. 8. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Worldwide: in over 60 countries Regional approach 1. FNF 2. Thoughts 3. Global Crises
  9. 9. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Sharing the fate with FNF in Pakistan Pakistan… working for Freedom in Pakistan since 1986 objectives: liberal democracy civic education human rights free market economy peaceful conflict resolution … and consequently working for betterment 1. FNF 2. Thoughts 3. Global Crises
  10. 10. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Small team – big outcome Syed Hussain Shah Muhammad Nisar handyman handyman outside the office inside the office Muhammad Anwar Chief-Administrator Munazza Batool Program Coordinator 1. FNF 2. Thoughts 3. Global Crises
  11. 11. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Sustainable work through partners Crucial Element is the self-responsible programme work of our partners. FNF trains, consults, interlinks and funds. 1. FNF 2. Thoughts 3. Global Crises
  12. 12. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 LFP-Elections in Larkana Meeting in Mithi Seminars, workshops, meetings Lahore (FGP), Karachi, Management Conflict Jul. 09 Children’s parliament (SPARC), Isl. 09 1. FNF 2. Thoughts 3. Global Crises
  13. 13. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Millenium Development Goals Pursuing MDGs… UN initiative in 2001 – achieved by 2015 1. Eradicate extreme poverty and hunger 2. Achieve universal primary education 3. Promote gender equality and empower women 4. Reduce child mortality 5. Improve maternal health …with German tax payers’ money: 6. Combat HIV/AIDS, malaria, and other Minister for Economic Cooperation and diseases Development, Heidemarie Wieczorek-Zeul, 7. Ensure environmental sustainability and German Ambassador, Michael Koch, in discussion with the German foundations. 8. Develop a global partnership for development Serena Hotel, Islamabad, Apr. 2009 1. FNF 2. Thoughts 3. Global Crises
  14. 14. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Political Foundations Instrument to implement constitution: The political parties contribute to the formation of the political will of the people. [German Basic Law, Art. 21] Weimar Republic (1918– 1933): Democracy without democrats =>civic education Pluralism: democracy taught with different views learning respect for each other 1. FNF 2. Thoughts 3. Global Crises
  15. 15. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Same view – different duties party: develops political objectives and raises political will to achieve those goals Courtesy of © Harald Kirschner faction: turns party will into parliamentary work foundation: research and formulation of policies capacitates political actors Delegation of the foundation at raises political interest the party’s parliamentary group hall 1. FNF 2. Thoughts 3. Global Crises
  16. 16. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 2. Liberalism - a history of thoughts
  17. 17. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Liberal: Misuse and Misunderstanding Liberal: from latin: liber – free Liberalism – concerning Freedom Libertarian: a person who upholds the principles of absolute and unrestricted liberty esp. of thought and action Libertine: a person who is unrestrained by convention or morality, one leading a dissolute life 1. FNF 2. Thoughts 3. Global Crises
  18. 18. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Liberalism political philosophy economical ideology worldwide movement hardly an undisputed definition – Liberals avoid Dogmas =>approach by seven selected thinkers Hambach Festival, 1848 (Germany) 1. FNF 2. Thoughts 3. Global Crises
  19. 19. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 You belong to yourself John Locke (1632–1704), English philosopher social treaty theory incl. protection of individual rights and property Self = continuity of consciousness religious tolerance Locke – Initiator of Enlightenment 1. FNF 2. Thoughts 3. Global Crises
  20. 20. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Self-interest as driving force Adam Smith (1723–1790), Scottish moral philosopher, father of modern economics in Theory of Social Sentiments: value of sympathy in The Wealth of Nations: human is striving for benefit Adam Smith, seen by Etching 1787 1. FNF 2. Thoughts 3. Global Crises
  21. 21. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 The mainspring is competition Frédéric Bastiat (1801–1850), French political economist and member of National Assembly in Harmonies économicques: self-interest + competition in La Loie: through development a just system of laws + demonstrates by these laws a free society The state is the great fictitious entity by which every- one seeks to live at the expense of everyone else. 1. FNF 2. Thoughts 3. Global Crises
  22. 22. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Act like you want without harming others John Stuart Mill (1806–1873). English philosopher + political economist, MP On Liberty: The harm principle + self-government Tyranny of majority =>limits on the ruler’s power, constitutional checks How can great minds be produced in a country where the test of a great mind is agreeing in the opinions of small minds? 1. FNF 2. Thoughts 3. Global Crises
  23. 23. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Constant Change and Reform Edmund Burke (1729–1797), Irish statesman, political theorist rejects the idea that societies can be planned => against any ideological revolution condemning imperial practices in British India A state without the means of some change is wihtout the means of its own preservations. 1. FNF 2. Thoughts 3. Global Crises
  24. 24. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Limited role of the state Friedrich August von Hayek (1899– 1992), Austian-British Economist + philosopher, Nobel laureate in Road to Serfdom: against all totalitarian regimes Welfare state undermines basis of free society I am certain that nothing has done so much to destroy the juridical safeguards of individual freedom as the striving after this mirage of social justice. 1. FNF 2. Thoughts 3. Global Crises
  25. 25. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 All life is problem solving Karl Popper (1902– 1994), Austrian-British philosopher Critical rationalism: no ultimate truth The open society – undermining most forms of authoritarianism + totalitarianism Will the sun rise tomorrow? 1. FNF 2. Thoughts 3. Global Crises
  26. 26. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Liberty leading the people before Socrates Locke: Two treatise on Government, 1690 American Revolution, 1776 French Revolution, 1789 Hambach Festival, 1848 19th century economic La liberté guidant le peuple take-off Eugène Delacroix, 1830 1. FNF 2. Thoughts 3. Global Crises
  27. 27. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 “We are the people!” Protestant Prussia Totalitarianism: National Socialism Communism Peace & freedom after 1945 Renaissance since 1989 Berlin Wall open: 12. Nov. 1989 1. FNF 2. Thoughts 3. Global Crises
  28. 28. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Neoliberalism Answer of world economic crisis 1929 Classical liberalism too much stress on economic issues and too much laisser-faire The new (gr. neo) liberalism: state as supervisor of framework in which forces Social Misery described by Charles may act and interact freely Dickens – State has to supervise. 1. FNF 2. Thoughts 3. Global Crises
  29. 29. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Comparison of Values Socialism Liberalism Conservatism Social justice Freedom Order Material equality Rule of law Duty Redistribution Choice Tradition The common goals Tolerance Hierarchy Classless society Entrepreneurship Authority Solidarity Competition Discipline Public ownership Property Endowment Social responsib. Responsibility Charity 1. FNF 2. Thoughts 3. Global Crises
  30. 30. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 3. Liberalism & Global Financial Crises
  31. 31. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Free market economy Individual decision-making, coordinated by market prices, combined with overarching private ownership are the basic elements of a system we call the market economy or “free market”. 1. FNF 2. Thoughts 3. Global Crises
  32. 32. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Capitalism Economic System […] in which most of the means of production are privately owned and production is guided and income distributed largely through the operation of markets. Encyclopaedia Britannica 1. FNF 2. Thoughts 3. Global Crises
  33. 33. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Government interference UK and US monetary policy to blame US government policy, by encouraging banks to lend to people with poor credit records, was a contributory factor in undermining US banks’ balance sheets. This problem was exacerbated both by the presence of the securitisation agencies, Fannie Mae and Freddie Mac, and by dishonest behaviour by some US borrowers. Booth, Philip [Ed.]: Verdict of the Crash. Causes and Policy Implications. London, 2009. 1. FNF 2. Thoughts 3. Global Crises
  34. 34. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Lack of framework International bank capital regulation did not reduce the risk of insolvency. It may have contributed to the crisis. Booth, Philip [Ed.]: Verdict of the Crash. Causes and Policy Implications. London, 2009. 1. FNF 2. Thoughts 3. Global Crises
  35. 35. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Designing the framework Specific legal mechanisms should be brought in to achieve these goals. A variety of approaches is possible, and these would not involve detailed regulation of the activities of banks. Such an approach to regulation would ensure that the risk of failure fell squarely on a bank’s shareholders and counterparties rather than on taxpayers. Booth, Philip [Ed.]: Verdict of the Crash. Causes and Policy Implications. London, 2009. 1. FNF 2. Thoughts 3. Global Crises
  36. 36. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 World Economic Freedom Index Fraser Institute Contributions from Institutes all over the world Also Friedrich Naumann Foundation For Pakistan: Alternate Solutions Institute, Lahore Pakistan ranking 110 out of 141 Free download: www.freiheit.org 1. FNF 2. Thoughts 3. Global Crises
  37. 37. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Free Market Pakistan? Liberalization of Telecommunication Subsidies on Ata? Fixed sugar price? Cement? 1. FNF 2. Thoughts 3. Global Crises
  38. 38. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Coming up soon Salman, Ali [Ed.]: Price Controls. Implications on Liberty and Welfare. – published by FNF The Pakistani state intervenes in the market by fixing prices of an increasing number of commodities ostensibly for welfare of larger public. In some cases, the fixing of prices is pronounced and carried out with a political vengeance, whereas in some cases the fixing of prices is done quietly through administrative measures. 1. FNF 2. Thoughts 3. Global Crises
  39. 39. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Conclusion In each scenario, liberal choices of the market are compromised. […] However this is often achieved at the cost of economic freedom, which essentially demands freedom of choice for both suppliers and the consumers. This state intervention distorts the incentive structure, increases budget deficits and crowds out capital allocation for public goods such as education, health and infrastructure. 1. FNF 2. Thoughts 3. Global Crises
  40. 40. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 Follow us: twitter.com/FNF_Pakistan Keep in touch! See us: flickr.com/photos/liberal_friends_of_pakistan Watch us: youtube.com/LiberalFriendsofPAK Read with us: amazon.com (People search: FNF Pakistan) Learn from us: slideshare.net/LiberalFriendsofPakistan Become a fan: Liberal Friends of Pakistan www.mynameise.com/LiberalFriendsofPAK Also in Urdu www.southasia.fnst.org
  41. 41. Olaf Kellerhoff Liberalism & Global Financial Crises 17.11.2009 International Online Conference Crises and Cleavages in Pakistan, Nov. 9-21 With experts from Pakistan and Germany e! fre f or Prof. Rasul Bakhsh Rais, LUMS Anees Jillani, Chairperson LFP ster gi Dr. Huma Baqai, University of Karachi Re Hassan Khan, KhyberTV Prof. Jochen Hippler, University of Bochum and others… http://focus-pakistan.fnst.org

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