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ORANGE SKY AT NIGHT IN THE MONTHS before Christmas, newspapers and television channels all over the world were reporting on the aftermath of the tainted presidential elections in Ukraine. The incumbent President, Moscow-backed Victor Yanukovich, had (contrary to expectation) managed to secure re-election and beat the popular leader of the opposition party,Victor Yushchenko.What had been expected to be just another semi-democratic election in a former Soviet republic transformed overnight into an historic series of events that included mass protests on the streets of Kiev, the Ukrainian supreme court and an alleged poisoning. Ukraine’s fourth general election since it gained independence from the Soviet Union in 1991 was supposed to reach a conclusion on November 21st. Instead this date marked the beginning of what would come to be known as ‘the Orange Revolution’. Shortly after the polls closed that night, the Electoral Commission and the major state-controlled CONTINUED ON PAGE 3

POWER TO THE PEOPLE? The Wisdom of Crowds by James Surowiecki (Little Brown, £16.99 – Hardback) ‘The value of expertise is, in many contexts, overrated,’ James Surowiecki announces in his introduction.This is a statement with which most people would probably disagree – after all, it seems only natural when faced with a problem to ‘ask the expert.’ But Surowiecki, a staff writer and columnist at the New Yorker, has produced a book that boldly challenges conventional assumptions about how decisions should be made. Instead of turning to experts or leaders to make key decisions, societies should rather turn to the wisdom of crowds, who, given ‘the right conditions and the right problems’, produce more accurate, more reliable and qualitatively better results than any


individual – regardless of how well qualified or intelligent they might be. Students of the free market and fans of political decentralisation might be more sympathetic to Surowiecki’s central premise, as they have been professing the benefits of devolved decision making for quite some time. And they have indeed found an exceptionally useful ally in Surowiecki, whose novel approach to the idea is quite rousing. The key to understanding Surowiecki’s argument lies in the caveats that he elucidates, and his ingenuity lies in identifying the conditions under which group decisions will be more accurate. His conclusion is that crowds will almost invariably be ‘wiser’ than individuals if a) a group is diverse, b) the people in the group act independently c) the group is decentralised, CONTINUED ON PAGE 3




DIRECTOR’S REPORT ORANGE SKY AT NIGHT CONTINUED television station reported that President Yanukovich had been re-elected. Ukrainian and foreign election observers disagreed, claiming that the election was not ‘free and fair.’ Mr Yushchenko’s supporters, convinced that their candidate was the rightful winner of the election, travelled from near and far to gather in Kiev’s Independence Square in support of their Western leaning candidate. After six days of protesting, public and international pressure told as the Parliament declared the election invalid and recommended a re-run in late December. Events began to take on an international dimension as the older generation compared the scenes in Kiev with events that took place during Cold War.The long-neglected term ‘sphere of interest’ also re-emerged in political commentary as Presidents Bush and Putin found themselves supporting different candidates. As Dr Andrew Wilson, a Senior Lecturer in Ukrainian Studies at University College London, recently pointed out at a Stockholm Network Westminster Fringe debate, Moscow sent a number of political technologists to run the Yanukovich campaign. Mr Putin also visited Kiev on several occasions before and during the electoral campaign,

COMPETITIVE MARKETS may need some attention in Europe but there is one area where choice and competition is flourishing and that is in the creation of new, marketoriented think tanks. Some 15 new members have recently joined the Stockholm Network and our newly expanded issue of Eye on Europe reflects that exciting growth. In this edition, we profile 4 members in detail including brand-new institutes in Croatia, Spain and Switzerland. We also profile our own new addition to the team, Meir Pugatch, who recently helped launch the Stockholm Network’s Intellectual Property and Competition programme. In March, we held a special workshop in London and created a special monthly e-newsletter, Know IP, which aims to share knowledge and views on trends in IP and competition across Europe. Our aim is to demystify a topic which is sometimes viewed as very technical but which nevertheless affects Europe’s ability to innovate and compete on the global stage.

POWER TO THE PEOPLE CONTINUED and d) if some mechanism exists for turning private judgements into a collective decision.

Coming up in the months ahead we will be looking eastwards, publishing both the edited proceedings of our recent conference ‘Does the West Know Best?’ and, in May, the follow-up to our healthcare survey Impatient for Change, which we have extended this year into Slovakia, Hungary and Poland. Are attitudes to health reform in east and western Europe really poles apart or can we each learn from one another’s approaches? With a general election looming in the UK, we will also be debating which party best understands the role of the market at our Westminster Fringe series in London, while debates at our Brussels-based Amigo society


will ask ‘Is Europe doomed?’ and look at the impact of the genetic revolution on healthcare. Last but not least, in May, Stockholm Network staff, think tank affiliates and sponsors will be retreating to Stockholm itself, where the Network idea was first conceived, to consider our achievements to date and debate our plans for the future. We hope to come back refreshed and inspired with new plans for the autumn and beyond to make Europe more prosperous and its public services more responsive.


One must therefore pay special attention to the qualifier that ‘groups work well under certain circumstances, and less well under others.’ Groups only make wise decisions, he stresses, when they satisfy the above conditions. Another caveat is that groups are better at deciding between possible solutions to a problem than they are at coming up with the solution itself. Once these caveats are taken into consideration, Surowiecki’s argument is not as sweeping as the title of the book would first suggest, but this does not detract from the weight of his argument. Using examples that are surprising and original – ranging from the Google search-engine to junk TV – he demonstrates how accurate group decisions can be under the right conditions and makes startling conclusions about human society, free markets, scientific research and the environment. If one overlooks the irony of Surowiecki using expert studies to prove the point that often experts are wrong, the case he makes is quite compelling.


entreating the people of Ukraine to vote for Mr Yanukovich. America, conversely, had remained neutral, and as Dr Wilson argues, only got involved after the problems started. But perhaps it is not surprising, given recent history and the geographical reality of a 1576km border relationship, that Mr Putin took such a keen interest in the Ukrainian presidential election. Jonathan Steele, Senior Foreign Correspondent for The Guardian, stated during the same debate that Russia’s position in Ukraine is legitimate because countries naturally have concerns about their neighbours. Indeed, the name ‘Ukraine’ actually translates to ‘borderland’ and the country has always been Russia’s main buffer with Europe. There remains, however, a big difference between taking an interest in the domestic politics of your neighbouring country and, as Putin did, calling the results of the election (in Mr Yanukovich’s favour) before they were officially released.Yet critics still disagree about the seriousness of his actions. Mary Dejevsky, Chief Leader Writer for The Independent, argued that the intervention was simply Putin’s folly, neither the considered actions of an experienced statesman nor the machinations of a manipulative autocrat.This view is probably a rather generous interpretation of the behaviour of a world leader who openly

The implications for corporations are made clear in the book – they should utilise the power of group decision making rather than relying on a small pool of very intelligent but often narrow minded professionals. But the implications for democratic processes is perhaps less clear, and Surowiecki fails to provide a comprehensive analysis of what his argument would mean for democratic institutions and processes, despite dedicating his final chapter to the subject.

supported Mr Yanukovich even after he was accused of having fixed the election and attempting to poison his main rival. Taras Chaban, an election campaigner for Mr Yushchenko, believes that the Orange Revolution represents the victory of freedom over tyranny and a victory of non-violent opposition over cruel oppression. One of the world’s most corrupt governments crumbled because the Ukrainians refused to put up with the regime any longer. But as both Mary Dejevsky and Jonathan Steele point out, Mr Yushchenko may have won the election, but he did so only by a small margin, as 44% of the electorate voted for his opponent. A significant constituency in this opposition block are ethnic Russians, who make up one-fifth of the Ukraine’s population. Mr Yushchenko may have won the election, but the challenges he will face are already lining up. Anne Jensen

argument for politics – perhaps that remains for a future book. One is also perhaps disappointed that the many are smarter than the few only in certain strict circumstances. But the reader may be soothed by the thought that pretentious leaders who claim to have a monopoly on wisdom are often outperformed by unassuming crowds. Terry O’Dwyer

From a public policy perspective, Surowiecki’s analysis raises some very interesting questions. Would it be possible to reform public sector organisations to respond more to group decisions? Can we use ‘decision markets’ like the Iowa Electronic Market for prioritising public policy goals? Or indeed to help decide how to make public services work better? The Wisdom of Crowds will appeal to the businessman, economist, politician and philosopher alike. Its punchy style and intriguing anecdotes make it an easy read, while its subject matter is both profound and fascinating. The main weakness of the book lies in Surowiecki’s unwillingness to carry his analysis further and comment on the implications of his




PROFILE: ADRIATIC INSTITUTE FOR PUBLIC POLICY THE ADRIATIC INSTITUTE FOR PUBLIC POLICY (AIPP), Croatia’s first independent free market think tank was formally founded in September 2004 by Natasha Srdoc and Joel Anand Samy.

leaders attended this first free market gathering and over 16 journalists covered this unprecedented event.

WHAT THEY DO The Adriatic Institute for Public Policy is dedicated to advancing free market ideas in Croatia with a special outreach initiative to neighboring Bosnia and Herzegovina.The significant challenges in the former Yugoslavia caused by decades of communism, the recent wars in the Balkan region (conflicts that began in 1991 and concluded with the Kosovo crisis in 1999) and years of criminal capitalism have stalled this region’s transition to free market economy. Genocide in the 1990s cost more than 300,000 lives, left millions displaced and the resulting widespread destruction ruined the region’s infrastructure. Bureaucrats and (ex)communists holding on to power in key state industries and government agencies are resisting economic reforms. Statistics provided by the IMF, World Bank and free market institutions reviewing key economic indicators in Croatia describe the nation’s decline in various indices when compared to its neighbours. Croatia ranks worst in the labour law category in Eastern Europe, tops the list in all of Europe with the highest government expenditures as a percentage of GDP (more than 50%) and continues to perpetuate a failed economic system.These alarming indicators and statistics affirm the need for Croatia’s leaders to adopt new economic policies that will lead to economic growth. The Adriatic Institute is dedicated to promoting free market economy based on personal freedom and individual responsibility, the rule of law, protection of property rights, limited government, lowering the tax burden, reducing government bureaucracy, eliminating corruption and advancing the principles of private enterprise that will benefit individual citizens. Acknowledging and affirming that individual initiative is vital to advancing liberty and free markets, the AIPP is committed to informing and educating Croatia’s stakeholders including 4


ADRIATIC INSTITUTE FOR PUBLIC POLICY senior government officials, parliamentarians, policymakers, business and media communications leaders, journalists, academia, university students and the general public regarding the benefits of the free market economy. A key strategy is to encourage Croatia’s citizens to call for free market reforms prior to this transitional nation joining the European Union. Most importantly, the leadership of the Adriatic Institute believes that only a non-government funded, independent entity will be able to fulfill its mission and pursue the mentioned objectives of limited government, reducing bureaucracy, eliminating corruption and lowering the tax burden.

WHAT HAVE THEY DONE The first International Leaders Summit (ILS) organised by AIPP and World Development and Empowerment in November 5 and 6, 2004, featured world-renowned free market thinkers including Dr Alvin Rabushka, Senior Fellow at the Hoover Institution and John Blundell, Director General of the Institute of Economic Affairs among other distinguished speakers.The ILS speakers articulated the importance of economic growth through unleashing free market forces. Croatia’s business, media communications and political

The significant media coverage in Croatia and the region was brought to the fore through Croatia’s broadcast media including state-run HTV, Nova TV (CME), RTL-Croatia, print media – Dnevnik,Vjesnik,Vecernji list, Jutarnji list, BBC European Monitoring-Hina, Slobodna Dalmacija, and new media from online news and weblogs and radio stations, reaching the entire nation. Most importantly, through HTV’s satellite capabilities, the message for free market reforms was broadcasted to Croatian descendents living abroad in Europe, Latin America, North America, Australia and New Zealand. On December 3, 2004, the founders of the institute unveiled the “ILS-Seven Strategic Recommendations for Economic Growth to the Croatian Government” through a major news conference that encompassed key solutions provided by the advisory board and leadership of AIPP.This significant blueprint details key policies for Croatia’s political leaders and policymakers that will lead to economic freedom and prosperity. In January 2005, Croatia’s Prime Minister Sanader in a television interview with Croatia’s state-run television HTV made a public statement endorsing the idea of flat taxation and acknowledging the progress that Slovakia has made since tax reforms were implemented there last year.This is a direct result of the strong message communicated through summit speakers and the “ILS – Seven Strategic Recommendations” which proves that progrowth solutions are being considered in Croatia.

FORTHCOMING PLANS AND PUBLICATIONS The leadership of Croatia’s first independent public policy institute looks forward to implementing several new initiatives over the next two years, in addition to hosting the now annual International Leaders Summit.The AIPP will begin a marketing and media relations campaign -”The Case for Flat Tax in Croatia”, host a conference on healthcare reform in Croatia, and continue to build relationships with parliamentarians, journalists and the business community. ISSUE FOUR

CIVITA – the Center for Business and Society – was launched in 2004 as the first free market think tank in Norway. Civita is organised as a limited company and has a broad base of stockholders.



Before the summer they will publish three books, the first on the libertarian origins of human rights and its implications for Norwegian law.Two subsequent books will focus on public choice in economic policy – theories of entrepreneurship and Austrian school economics.

Civita has several events and publications planned for its second year. Two early reports will focus on the issue of democracy in China, and the market-oriented reform of pensions systems.

The group aims to be a creative and dynamic think tank which, through its work, will contribute to an increased understanding of, and commitment to, the core values of a free economy, civil society and strengthened personal responsibility.

Norway will also hold municipal elections in September, and as such Civita will increasingly participate in the growing media debate about the need for market-based welfare reforms and the modernisation of the public sector.

WHAT HAVE THEY DONE Civita started its work in February 2004 with a seminar on the challenges for the Norwegian welfare state. In March, they published the first Norwegian book with a free market approach to globalisation, Åpen Verden (Open world). The book caused much public debate and its widespread coverage in the media helped establish Civita in the Norwegian political landscape.The book was launched at a seminar in cooperation with the Washington based Center for Strategic and International Studies (CSIS). What challenges do we face in defending the classic basis for freedom in a new era? What should the limitations of freedom be? Do we have to reformulate the premises for a debate on personal freedom after 9/11? What has affirmative action to do with freedom? Is it correct that ‘flexible capitalism’ brutalises work life, and that employers’ need for flexibility is in opposition to employees’ need for more freedom? Is the welfare state a threat to individual freedom? Have we got an immigration policy that considers the individual’s right to seek a better life for oneself and one’s family? These were the questions in an anthology entitled Frihet – Samtalen Fortsetter (Freedom – The Conversation Continues) which Civita published last year as an introduction to Norway’s first pro-market think tank and its issues. Civita also focuses on the role of the media in the Norwegian political debate, and has arranged seminars on the role of the media in a functioning liberal democracy.

SPRING 2005 For as long as Norway remains outside the EU it will be important for Civita to debate and communicate the ‘pros’ and ‘cons’ of future membership through its events and publications. On November 9th 2004, to mark the 15th anniversary of the fall of the Berlin Wall, Civita published a book on the ideas behind the changes in Europe from communism to democracy, Europas stille revolusjon (The Silent Revolution).This was shortly followed by the publication of a Norwegian translation of Dr Eamonn Butler’s book on Friedrich von Hayek, Hayek – His Contribution to the Political and Economic Thought of Our Time. Dr Butler also visited Oslo to deliver a lecture on Hayek at the book launch. Last year, Civita arranged a two-day ‘Oscarborg Seminar’ for young political advisers, business trainees and young leaders on an island in the Oslo Fjord.The topics of discussion varied from Corporate Social Responsibility and Entrepreneurship to taxes and their effect on the dignity of the individual.The event was such a success that the Oscarsborg seminars are now an annual Civita event.





Switzerland is not your typical emerging country in desperate need of market reforms. But what still passes off as a bastion of freedom has been gradually losing ground for a number of years, and the Swiss model of small, decentralised and open political entities is under threat.

the humane alternative. Liberty has been celebrated and lost before. A free society can only sustain itself if the principles on which it is founded are recognised and respected. What Switzerland must rediscover is the compass needed to withdraw in an orderly manner from the dead end of tax and spend. Hence the need to make the re-birth of free society an intellectual adventure again, capable of stimulating the imagination and spawning enthusiasm.

Founded in January 2005, the Institut Constant de Rebecque intends to reverse that trend by promoting the values of a free society from a country in Europe which plays a disruptive role in the plans for more centralisation at EU level and remains an inspiration to many others.

WHAT THEY DO The Institut Constant de Rebecque, as an independent think tank based in Lausanne, perpetuates a long intellectual tradition in the Lake Geneva region, building on the heritage of Benjamin Constant, Madame de Staël, Wilhelm Röpke and Ludwig von Mises, among others. Through a vast network in academia, politics and the press, the Institut Constant is developing long-term public policy solutions to current challenges through research projects in various fields including personal autonomy, financial privacy, institutional competition, tax issues and free trade. Besides essential public policy research, the Institut Constant promotes the works of thinkers, researchers and young scholars who share its ideals. It encourages the participation of students in the fields of law, economics and business administration and sponsors their attendance at international conferences for classical liberal scholars. It also holds reading and discussion seminars both in French and German in order to sustain personal commitment and a strong intellectual basis for its other projects. Broadly speaking, the Institut Constant tries to act both as a scholastic lighthouse and as a more practical research institute of applied principles. Institut Constant enjoys a strong presence in the press, with regular attributed columns in a bimonthly business magazine and in a daily newspaper.



INSTITUT CONSTANT DE REBECQUE WHAT THEY BELIEVE Despite its leading, innovative role in life sciences, financial services and high technology, Switzerland has recently been falling behind in every rating of competitiveness and economic freedom. Government spending grows at an alarming rate, social dependency swallows 30 per cent of annual wealth production, while regulatory hyperactivity produces 4000 new pages of law every year.The political parties’ intellectual weakness is reflected in increasing disillusionment with politics and high rates of voter abstention. And the business lobby has failed to counter this apparently inevitable trend.The drift therefore continues and crystallises through the public administration, subsidised non-governmental organisations, government schools and the state-financed advisory and research industry.

Institut Constant will soon publish a research report on the consequences of potential Swiss membership in the Schengen and Dublin EU agreements.The paper will examine the effects of security enforcement, asylum policy and border control legislation on individual rights, institutional competition and free trade in the context of these agreements. The institute is also currently preparing a blueprint for Geneva, one of Switzerland’s wealthiest city-states whose bad policies have produced an unemployment rate twice as high as in the rest of the country and the highest local government debt ratio.The report will provide intellectual ammunition for much needed free-market solutions to the republic’s problems and serve as a tool for sound policy. In addition to these projects, Institut Constant is developing a Centre for tax competition, which will monitor Swiss and international developments in the fields of business and personal taxation, harmonisation and financial privacy.The Centre will in future carry out research projects to foster a competitive and diverse international environment in taxation. The institute will also be developing its activities in the fields of free-market healthcare, free medicine and pharmaceutical research freedom.

Institutional opposition to change in collectivised pension systems reduces the freedom of future generations. Imminent decisions in foreign policy, persistent pressure on the financial centre, and uninterrupted tax burden growth all underline the urgency of overcoming the usual diatribes and recognising



The Juan de Mariana Institute is a private, independent and not-forprofit think tank. Founded in 2005, it is the result of many years of collaboration between individuals in the fields of academia, journalism, education and the world of private enterprise. Named after the great Spanish liberal thinker of the 16th Century, the Juan de Mariana Institute aims to support the initiatives of defenders of individual liberty.

the media, specialised publications, universities, technical committees and open public forums. The institute’s educational aspect involves organising courses and seminars as well as scholarships for research in Spain and abroad. The institute will also make available in Spanish foreign texts which it believes are related to the objectives of the institute. The institute will carry out its own original economic research on themes of particular theoretical and practical interest.The different departments of the IJM are responsible for carrying out research projects and publishing them. Based on the conclusions of the different studies, the IJM will propose reforms that could help develop better public policy.

WHO WAS HE Born in Talavera de la Reina at the end of 1535, Father Mariana would become one of the most original thinkers of the Salamanca School. In 1560 he was called to Rome to teach theology, and his growing prestige as a professor and thinker would later take him to Lorete and Sicily.Toward the end of that same decade he moved to Paris where he studied the teachings of St Thomas of Aquinas. Having become one of the most respected minds of the Old Continent, Juan de Mariana returned to Spain in 1574 for health reasons. Yet his return to his homeland marked the beginning of the most intellectually productive period of his life, and he would live to be 89 years of age. His defence of private property and clear and strict limits on political power continue to be formidable recommendations for the safeguarding of the individual rights of all humans. Similarly, his denunciation of the abuse of printing money, of monopoly, of unfair taxation and of unjust war, form the basis of the application of liberal principles to the study of impediments to liberty. His belief in a balanced budget and a stable currency represent the analysis and search for the most important social and economic questions. He sought solutions to the political economy that were both efficient and rooted in ethical principles. Lastly, his impressive personal consistency, even during times of great adversity, makes us want not only his ideas but equally his nature to be an example for future liberal generations. SPRING 2005

FORTHCOMING EVENTS AND PUBLICATIONS The institute’s mission is to research and enlighten the Spanish and international public about the benefits of private property, entrepreneurship, and a small government. The institute aims to become a reference point in the debate of ideas and public policies with a view to promoting a free society in which individuals suffer from the least possible institutional coercion. With the aim of maintaining complete independence, the Institute does not accept subsidies or donations from any government or political party. Its activities in defence of liberty are financed from private donations, foundations and private corporations which share its objectives.

The IJM’s first big public event will be held on 20 April as a day-long series of discussions under the theme of ‘Kyoto and the Spanish Economy’ at the Rey Juan Carlos University of Madrid. Experts from fields as diverse as physics, economics and journalism will discuss the consequences of complying with the Kyoto Protocol for the Spanish economy.The conference will be chaired by Professor Jesus Huerta de Soto.The Institute is also currently planning a conference about the privatisation of pensions and another on the regulation of the electricity market in Spain and Europe. The IJM hopes to publish at least two books in 2005. Its line of educational publications will be launched with An Introduction to Economic Reasoning by David Gordon, while under a collection of classical liberal texts it hopes to publish soon a compilation of the economic writings of Juan de Mariana.

WHAT THEY DO The institute aims to carry out both educational programmes and original research. Furthermore, the institute will actively promote free market ideas through the holding of conferences, press releases, information campaigns, book publications and opinion articles in leading newspapers.The IJM will engage in public debate through its researchers who appear in





meetings; two CNE Health Luncheons, a Journalists’ Salon for twenty leading Brussels based journalists; a CNE Environment Luncheon, and the first of the organisation’s dinners for its newly formed CNE MEPs’ Club. Having recently appointed a new Fellow in Hungary, the leading national journalist Laszlo Seres, the organisation also expects to expand its network of voices (or Fellows) into Poland.

Adam Smith Institute Country: United Kingdom The Adam Smith Institute will continue to host The Next Generation receptions through the early summer. June 7th will feature Dr Razeen Sally, Senior Lecturer in International Political Economy at the London School of Economics, while Dr Liam Fox, Co-Chairman of the Conservative Party will address the gathering on July 5th. The ASI will also hold an evening seminar on American Democracy, celebrating the 200th Anniversary of Alexis de Tocqueville’s writing, on July 28th. Association for Liberal Thinking Country:Turkey The Association for Liberal Thinking will celebrate the 55th Anniversary of Turkey’s transition to a multi-party democratic system and its first democratic elections. A Symposium on Freedom and Democracy will be held on May 14-15th to examine the history of military interventions and the Turkish political and economic system.The ALT has also declared a ‘Week of Freedom and Democracy’ to conduct several related activities, including an essay contest among students. And the ALT’s Annual Freedom Dinner will be held on May 14th during which an Annual Freedom Award will be presented.The week’s event will be featured in an upcoming documentary. The ALT will hold a workshop among local opinion leaders, entitled a “Search for a Peaceful Coexistence”; a panel on “Turkish Democracy on the Way to EU” open to the public and a “School of Liberal Democracy” for students, jurists and research assistants in the ethnically diverse cities of Diyarbakir (on April 1-3rd) and Mersin (May 6-8th).


Fundació Catalunya Oberta Country: Spain Centre for Liberal-Democratic Studies Country: Serbia and Montenegro The Centre for Liberal-Democratic Studies (CLDS) is compiling the final report of its project, Serbian Transition Four Year Later: An Evaluation.The aim of the project is to thoroughly analyse and explain the pattern of Serbian transition towards a market economy over the last four years, in terms of the accomplishments (and the lack of them) and the driving force behind it (within the framework of public choice analysis), and to identify the major challenges. It is expected that the final report will be released in both Serbian and English in late May and will be available for downloading from the CLDS web site.The findings will be discussed at an international round table that will also take place in Belgrade in late May. The Centre for New Europe Country: Belgium The second quarter of 2005 will see CNE hosting a wide range of events. These will include the organisation’s regular monthly free market network ‘Muffin’ meetings; its monthly Political Adviser’s Forum

Fundació Catalunya Oberta has recently boosted its activities with a weekly electronic bulletin published in Catalan and English and aimed at promoting the debate of ideas among Catalan civil society and defending the values of the open society, freedom, democracy, catalanism and the market economy. Each issue will feature a short presentation from a foreign foundation or think tank and we welcome subscriptions, comments or contributions from the Stockholm Network’s members. The FCO are also now accepting submissions for the 2005 Premi Fundació Catalunya Oberta, a prize that recognises the career of a journalist (or regular contributor to the media) who has played a prominent role in defending the values of freedom and market economy. Previous winners include Jean-François Revel, Lord Ralf Dahrendorf and Giovanni Sartori. All candidacies will be welcomed until the end of May.The prize will be delivered next October in Barcelona.

system in the Czech Republic. Several working groups have been created to study specific issues such as health systems funding, the necessary range of statutory health insurance, personal health accounts, and the status and regulation of health insurers.The recommendations of these groups will be published in a comprehensive proposal in October 2005, but Health Reform will be hosting a series of related domestic and international events prior to this date. Global Development Summit – International Policy Network Country: United Kingdom Politicians, rock stars and development charities claim that the best way to end poverty is by forgiving debt, increasing foreign aid, and making trade ‘fair’.These issues have become a focal point of this year’s G-8 agenda. But would such initiatives help anyone besides their proponents? Meanwhile, the leaders of poor countries blame their continued economic failure on past colonialism. Postcolonial guilt in wealthy countries leads to

‘feel good’ initiatives that make the situation worse, entrenching those who use their power to oppress the poor. Often forgotten are the success stories: countries that have escaped their colonial past and flourished. By and large, these countries did not succeed because of ‘aid’, debt relief, or ‘fair’ trade. So, how did they do it? Speakers at the Global Development Summit on June 28th will offer perspectives about how poor countries can best overcome obstacles to economic development, to achieve prosperity for all. Health Consumer Powerhouse Country: Belgium The Health Consumer Powerhouse will host its first Health Consumer Summit on June 15th in Brussels.The summit will bring together creative and influential consumer advocates from around the EU, and will feature Christofer Fjellner MEP and EU Health Commissioner Markos Kyprianou (TBC). Johan Hjertqvist, President of the Health Consumer Powerhouse, will also present the HCP’s vision of the era of the health consumer.

Istituto Acton Country: Italy Drawing on the work of Luigi Sturzo – a catholic priest who was instrumental in developing liberalism in Italy and founded the Partito Popolare (which later became the Christian Democratic Party) -, the Istituto Acton will be holding a series of seminars throughout the Spring. In March, the role of local governance in his work will be examined, while on April 29th and May 5th, the topics of discussion will be private schools, and the concept of history respectively. The Istituto will also hold a study day on ‘Globalisation and the Development of Poor Countries’ on May 5th in Rome. Istituto Bruno Leoni Country: Italy On October 7-8th, the Istituto will hold its second ‘Mises Seminar’. Open to young scholars (under 35), the seminar is an opportunity to present papers on political philosophy, economics, and the history of political thought.The IBL also hosts monthly healthcare seminars in Rome and Milan, and ‘Rothbard Seminars’ for PhD students in Milan. The Istituto will shortly be publishing a detailed analysis of the recent Microsoft case at the European Court of Justice by Alberto Mingardi, and an Italian translation of Wilfried Prewo’s From Welfare State to Social State, originally published by the Centre for the New Europe.

Health Reform Country: Czech Republic Health Reform is continuing its project to create a politically feasible blueprint for the creation of an effective and financially sustainable health







INEKO Country: Slovakia

Institut Economique Molinari Country: Belgium

Institut Turgot Country: France

INEKO will be jointly hosting a seminar on May 16th with the International Centre for Policy Studies in Kiev to examine the potential reform of the business environment in Ukraine.The seminar will serve as an exchange of the lessons learned during reform carried out in Central European countries, such as Slovakia, Poland, Hungary and the Czech Republic in the areas of tax policy, administrative barriers to business and privatisation, including the debate on political economy of reform-making. In combination with the Slovak Business Alliance, INEKO is currently developing a project examining the further reform of the income tax system in Slovakia.The study will focus on the economic efficacy of tax collection methods.

In April, the IEM will publish a note on Antitrust law and a history of famous cases.The text will examine the original intention of antitrust laws versus their frequent use by industry competitors to avoid actual market competition.The Institut will also publish a research paper on genetically modified organisms. Drawing on historical examples, the note will show that fears abour GMOs have little basis in science and in fact are causing grave harm to the world’s poor.

A new French think tank,Turgot Institute, will soon release its first study devoted to healthcare reform. It will be available on its website. Written by Jean-Luc Migué, senior fellow at the Fraser Institute, it employs Public Choice economic methodology to explain the main features of In 2004, JIMS calculated Tax Freedom Day for the first time in Israel’s history, and are now planning a major publicity campaign for Israel Tax Freedom Day 2005. Israel’s TFD 2005 is expected to fall in the beginning of August, placing it far behind most European countries. The IKHB will be hosting a conference on pension reform in the Czech Republic at the end of September. More details are to be confirmed. Institut Montaigne Country: France


Ludwig von Mises Institute Country: Belgium Jerusalem Institute for Market Studies Country: Israel

Institut Karla Havlicka Borovsheko Country: Czech Republic

The Institut Montaigne will shortly be releasing five policy papers. A Rapport will propose social innovations to prevent and reduce financial precariousness and social exclusion in France. Another will propose solutions for the problems that French corporate firms face in increasingly competitive global markets.Three other Rapports will be published on agriculture, the techniques used to modernise the government, and government property.

exchange of ideas and skill building exercises. During the first day the participants will engage in a constructive dialogue during high level conference presentations on ideological, political and practical issues of free market ideas and principles.The second day will feature an exchange of practical information on thinktank strategies and methods during six skillbuilding workshops.The ERBM will be convened with an official gala dinner.

modern, government-run health care systems, why government involvement in health care keeps increasing, and finally why such systems are so inefficient. Professor Migué’s study asks for market solutions based on patient and consumer individual responsibility with taxexempted health care accounts, high franchise individual health insurance, and health vouchers for the disadvantaged.The study also addresses false ideas concerning liberal reform of the system, and argues that the free market is the most efficient way of creating quality health care accessible to all.


JIMS will also be publishing a study advocating a transition in Israel from a ‘people’s army’ to a professional army.The study shows that a professional, volunteer army would save taxpayer money and cancel the ‘draft and reserve’ tax levied on a subset of the population.The reduction in taxes will free resources in the national economy and boost Israeli economic growth. The Lithuanian Free Market Institute Lithuania In its 15th anniversary year the LFMI will host the second annual European Resource Bank Meeting (ERBM) in Vilnius on October 14 -15th.The event will draw about 200 think tank executives, policy analysts and local leaders for a two day event which will combine an SPRING 2005 The LVMI will be holding the latest in their series of debates about the consequences of EU Enlargement on April 18th. Held at the Club de la Fondation in Brussels, the debate is entitled ‘Ukraine’s EuroAtlantic integration policy and prospects of its cooperation with NATO’, and features Brian Carney of the Wall Street Journal Europe and Mr. V Khandogiy, Ukranian Ambassador to Belgium and Head of Ukraine’s mission to Belgium.

Taxpayers’ Alliance Country: Britain To coincide with the forthcoming General Election in Britain, a new Tax Pledge campaign has been launched. Supported by Stockholm Network members Reform and the TaxPayers’ Alliance as well as other local tax groups, the campaign is modelled on the Americans for Tax Reform movement in the United States, and will ask electoral candidates to sign a pledge stating that they will not vote for any tax increases unless there is a national emergency.

Policy Exchange Country: United Kingdom Over the next few months, Policy Exchange will be issuing a series of reports and publications. Unaffordable Housing will be the first report from a major research project into housing and land-use planning, while No more school run, jointly commissioned by the Sutton Trust and the Social Market Foundation will examine the introduction of a national yellow bus scheme in England. Expansion and Equity – Choice for the Many, not the Few will later summarise the findings of their exhaustive research into school choice.






‘‘The Stockholm Network is very good as an idea and even better in reality.There are so many forces for freedom now in Europe and the Stockholm Network brings us together. The publications and events by the Stockholm Network have been of great use to me and the conferences have led to many important contacts.’’ Johnny Munkhammar, Author of The Collapse of Big Government

The Stockholm Network is a one-stop shop for organisations seeking to work with Europe’s brightest policymakers and thinkers. Our unique network of over 130 marketoriented think tanks in Europe and further afield, gives us the capacity to deliver local messages and locally-tailored global messages across the EU and beyond. Joining the Stockholm Network gives you unparalleled access to the best European policy thinking, the opportunity to lead debates and change the climate of ideas in Europe and the chance to meet the key players in shaping the policy debates of tomorrow.

WHAT POLICY ISSUES DO WE DISCUSS? The Network is interested in ideas which stimulate economic growth and help people to help themselves. We promote policies which create the social and economic conditions for a free society.These include: Reforming European welfare states and creating a more flexible labour market Creating competition and choice in healthcare, through reform of European health systems and markets Creating a market in which world-class education can flourish Taking a practical, market-oriented look at environmental affairs Emphasising the benefits of globalisation and creating an understanding of free market ideas and institutions


The Economist;Vince Cable MP, Liberal Democrat Shadow Chancellor; Frits Bolkestein, EU Commissioner for the Internal Market; Conor Cruise O’Brien, author and historian; Hans Hoogervorst, then Dutch Social Security Minister, now Health Minister; Jason Turner, architect of Wisconsin and New York’s welfare to work schemes; Philippe Legrain, author of Open World: The Truth about Globalisation; Johan Norberg, author of In Defence of Global Capitalism. Our events and books have received media coverage across Europe, including BBC TV and BBC Radio 4, the Financial Times, the Frankfurter Allgemeine Zeitung, La Repubblica, Le Point, The Economist, The Times, The Business, the Wall Street Journal Europe, The Sun, the Daily Express, the News of the World, Public Finance magazine, The Sprout, The New Statesman magazine, Dagens Nyheter of Sweden, Pravo of the Czech Republic and Hospodárské Noviny of the Czech Republic.Topics have ranged from labour market flexibility and tax harmonisation to health system reform, welfare to work and immigration.

HOW COULD YOU OR YOUR ORGANISATION BENEFIT FROM SN MEMBERSHIP? Expand your database by meeting new contacts from across Europe Expose your own expert voices to a wider audience Receive weekly Stockholm Network email updates and quarterly newsletters Receive Stockholm Network Books & Publications Get invitations to Stockholm Network Events & Activities

WHAT DO WE DO? The Stockholm Network maintains a website ( which contains a comprehensive directory of European free market think tanks and thinkers. We advertise forthcoming events (our own and those of partner organisations) and facilitate publication exchange and translation between think tanks. We also post regular news flashes and updates on European think tank activities.

WOULD YOU LIKE TO JOIN THE STOCKHOLM NETWORK? Please contact us on +44 20 7354 8888 or email our Director of Programmes, Sacha Kumaria

SACHA KUMARIA is the Stockholm Network’s Director of Programmes. He is responsible for liaising with the member think-tanks, and co-ordinating research projects and events. He also compiles the weekly e-newsletter.

Formerly an editorial writer for The Times and an editorial writer and commentator for the Daily Express, Helen continues to write regularly on a range of public policy topics for such publications as the Daily Express and Sunday Express, Public Finance, Public Service Magazine, and The Sprout, a satirical Brusselsbased magazine, as well as regular weekly entries for the Centre for the New Europe’s health weblog, CNE Health.

Sacha joined the Stockholm Network following a successful research internship at Civitas, a civil society think-tank and Stockholm Network member in London. He previously worked parttime as a student caller during his postgraduate studies, raising money for the University of Warwick Alumni Fund. After growing up in Hong Kong, Sacha returned to the UK to continue his studies, and holds a Degree in English and American Literature and a Masters in Ancient History from the University of Warwick.

Helen has been the Director of the Stockholm Network since 1997, and is a founding member of the organisation. She holds a degree in French and Italian from Bristol University and speaks conversational Spanish.

ANNE KRISTINE JENSEN is the Stockholm Network’s Administrator. She joined the Network in October following a period as an intern, and is responsible for managing the office, organising events and frequently contributes to Stockholm Network publications. Anne recently completed her studies at the London School of Economics, where she obtained a Masters Degree in Political Economy with a focus on International Trade. Previously, she had studied for her undergraduate degree at the Universities of Oslo (Norway) and Gothenburg (Sweden). Anne has also worked in the political department of the Norwegian embassy in Berlin and for the Norwegian Liberal-Conservative party.

Our events provide an excellent opportunity for networking with high-profile European policy makers and opinion formers. Previous attendees have included: Charlotte Cederschiold,Vice President of the European Parliament; Clive Crook, Deputy Director,


HELEN DISNEY is Director of the Stockholm Network. Her background is in public policy and the media. She also undertakes consultancy work on public policy issues for corporate clients.



DAN LEWIS is the Stockholm Network's Director of Environmental Affairs. As a pro-growth environmentalist, he has contributed articles and letters to numerous publications includingTheTimes,The Guardian, The DailyTelegraph and Refocus and Sustain Magazine. His pamphlet for the Economic Research Council, Recharging The Nation, an economicsbased assessment of existing, renewable technologies and their prospects for expansion, put the case for Green Energy in the UK at the right price if combined with market-driven policies. He has since advised policymakers and institutional investors about renewables and the environment. Following his latest publication, "The Essential Guide to British Quangos 2005", he has become the media's first choice of expert for this poorly understood – yet burgeoning – area of UK Government.

TERENCE O’DWYER is Research Officer at the Stockholm Network. He is responsible for coordinating the Amigo Society meetings and liaising with our Spanish and Portuguese think-tank members.Terry joined the Stockholm Network in July 2004. He started his career as an intern, but was brought on board as a permanent member of staff in October. After growing up in Brazil, Mexico and the USA,Terry returned to the UK to study History at the University of Durham. He then moved on to Oxford University, and holds a Masters in Latin American Studies.

MEIR PUGATCH heads the intellectual property and competition programme at the Stockholm Network and edits its monthly e-newsletter, Know IP. He is based at the School of Public Health, University of Haifa in Israel, where he is a lecturer on intellectual property policy, management and the exploitation of knowledge assets and entrepreneurship. Meir is also a guest lecturer at the Department of International Relations, Hebrew University Jerusalem, where he lectures on the international political economy of trade policy.





1 Adam Smith Institute 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20


22 23 24 25 26 27

The Stockholm Network is Europe’s only dedicated service organisation for market-oriented think tanks and thinkers. Spanning almost 40 countries and over 130 think tanks, our unique organisation has the capacity to deliver local messages and locally-tailored global messages across the EU and beyond.

Through our publications, weekly newsletter, and special events, members are able to exchange ideas and make an impact on a wide range of public policy topics and ideas. If you know of a new organisation you think would benefit from Stockholm Network membership, please contact our office at and let us know.

‘‘The Stockholm Network does an invaluable job in linking Europe’s free market think tanks, at a time when new thinking is urgently needed to end the region’s economic and cultural stagnation.’’ John Willman, Associate Editor, Financial Times

28 29 30 31 32 33 34


ISSUE FOUR United Kingdom Adam Smith Society Italy Adriatic Institute for Public Policy Croatia Albanian Center for Economic Research Albania Albanian Liberal Institute Albania Anders Chydenius Foundation Finland Association for Liberal Thinking Turkey Association for Modern Economy Macedonia Avenir Suisse Switzerland Bertil Ohlin Institute Sweden Bulgarian Institute for Individual Liberty Bulgaria Causa Liberal Portugal Center for Liberal-Democratic Studies Serbia Centre for Democracy and Free Enterprise Czech Republic Centre for Economic Development Slovakia Centre for Economics and Politics Czech Republic Centre for European Reform United Kingdom Centre for Liberal Strategies Bulgaria Centre for Policy Studies United Kingdom Centre for Political Thought Poland Centre for Research into Post-Communist Economies United Kingdom Centre for Social and Economic Research Poland Centre for the New Europe Belgium Centre for the Study of Democracy Bulgaria Centro Einaudi Italy Centrum im. Adama Smitha Poland Cercles Liberaux France CIDAS Italy Circulo de Empresarios Spain Civic Institute Czech Republic Civita Norway Civitas United Kingdom Cortese Foundation Italy Council on Public Policy Germany


35 David Hume Institute 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61


63 64 65 66 67 United Kingdom E.G.West Centre United Kingdom Edmund Burke Foundation The Netherlands Ekome Greece Eudoxa Sweden Euro 92 France European Ideas Network Belgium European Policy Centre Belgium EVA Finland F.A. v. Hayek Institute Austria Fondazione Luigi Einaudi Italy Foundation for Market Economy Hungary Frédéric Bastiat Stichting Netherlands Free Democratic Norway Free Market Centre Serbia Friedrich Naumann Stiftung Germany Friedrich von Hayek Gesellschaft Germany Fundacio Catalunya Oberta Spain Fundacion Internacional para la Libertad (FIL) Spain Gdansk Institute for Market Economics Poland Global Business Research Institute United Kingdom Hayek Foundation, Russia Russia Hayek Foundation, Slovakia Slovakia Hayek Society Hungary Health Consumer Powerhouse Belgium Health Czech Republic IFRAP (French Institute for Research into Public Administration) France Independent Institute of Socio-Economic and Political Studies Republic of Belarus INEKO Slovakia Institut Constant de Rebecque Switzerland Institute for Liberalism and Market Economy Austria Institut Hayek Belgium Institut Karla Havlicka Borovskeho Czech Republic

68 Institut Montaigne 69 70 71 72 73 74 75

76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 France Institut Turgot France Institute for Economic Studies Europe France Institute for Free Enterprise Germany Institute for Free Society Slovakia Institute for International Relations Croatia Institute for Market Economics (IME) Bulgaria Institute for Transitional Democracy and International Security Hungary Institute Economique Molinari Belgium Institute of Economic Affairs United Kingdom Institute of Economic Analysis Russia Institute of Economic Studies Iceland Institute of Economics Croatia Institute for Strategic Studies and Prognosis Montenegro Istituto Acton Italy Instituto de Estudios del Libre Comercio Spain Instituto Juan de Mariana Spain Instytut Liberalno-Konserwatywny Poland International Centre for Economic Research Italy International Council for Capital Formation Belgium International Policy Network United Kingdom Istituto Bruno Leoni Italy Jaan Tonisson Institut Estonia Jerusalem Institute for Market Economics Israel Konrad Adenauer Foundation Germany Liberales Belgium Liberales Institut Switzerland Liberalni Institute Czech Republic Libertarian Alliance United Kingdom Libertas Denmark Liberty Net Greece Lithuanian Free Market Institute Lithuania Ludwig von Mises Institute Europe Belgium

101 Ludwig von Mises Institute, Romania 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126

127 128 129

130 131 Romania Magna Carta Foundation Italy Markedscentret Denmark M.E.S.A. 10 Slovakia New Economic School, Georgia Georgia New Economic School, Russia Russia New Social Market Economy Foundation Germany Nova Civitas Belgium Nova Res Publica Italy Open Republic Institute Ireland Paradigmes France Spain Policy Exchange United Kingdom Politeia United Kingdom Project Empowerment United Kingdom Ratio Institute Sweden Reform United Kingdom Riinvest Institute for Development Research Kosovo Romania Think Tank Romania Romanian Centre for Economic Policies Romania Sauvegarde Retraites France Social Affairs Unit United Kingdom Stiftung Marktwirtschaft Germany The Taxpayers’ Alliance United Kingdom Telders Foundation The Netherlands Think Tank for International Governance Research Austria Thomas More Institute Belgium Timbro Sweden Ukranian Centre for Independent Political Research Ukraine Venezia Institute Italy Walter Eucken Institut Germany



EVENTS AND PUBLICATIONS UPCOMING PUBLICATIONS In the next 2 months, the Stockholm Network will be publishing 2 new books, both based around a common theme: what are the policy differences between the New Member States and the EU-15 and what can we learn from one another? Does the West Know Best? is a collection of essays looking in detail at why countries in Central and Eastern Europe have been more radical in adopting market-based reforms from introducing flat rates of taxation to privatising social security and reforming healthcare systems. The authors outline some examples of best

practice and ask what impact this radicalism may have on the traditional social welfare models now under pressure in the West. The follow-up to last year’s successful survey of European attitudes to healthcare, Impatient for Change, extends the same set of questions to 3 new countries in Central and Eastern Europe: Slovakia, Poland and Hungary. What do the public in these 3 new member states think about their health systems now and what do they expect from them in the future. Are they more impatient for reform than their Western counterparts and where do they go from here? To place an advance order for either of these publications, please email:

THE STATE OF THE UNION This new collection of essays by Stockholm Network authors explores the unique set of historical, cultural and social circumstances that have obstructed the path to reform in European Union member states in 2004. For more information please contact

If you would like to order a Stockholm Network publication, please send a cheque made payable to ‘Market House International Ltd’ to the address below. Please also include £2 postage in Europe, £3 postage Rest of the World. Return Address: Stockholm Network 35 Britannia Row London N1 8WH United Kingdom

A Sick Business £10 Apology for Capitalism £10 Impatient for Change £12

WESTMINSTER FRINGE DEBATES One Great George Street, London SW1

PREVIOUS DEBATES: 8th February 2005 Ukraine's Crisis is Russia's Shame 31st March 2005 My Party Alone Understands the Proper Role of the Market UPCOMING DEBATES: 19th May Should Turkey be admitted to the EU? In recent months the Westminster Fringe series of debates have covered the Ukrainian and British elections, and now turns to an issue both at the heart, and on the fringes, of Europe to examine whether Turkey should be allowed to join the European Union. Can the EU digest a largely Muslim, if officially secular, country? Will Europeans be happy at the prospect of Turkey becoming the biggest country by population, thus having the most votes and most seats in the European Parliament? Is the EU strong enough to absorb a country so much poorer than the rest of its 25 members? How far will Turkey's human rights record come into account? Is it a good idea for the EU to extend its borders to Iran, Iraq and Syria? And how can the problem of Cyprus be resolved? Westminster Fringe debates are held at One Great George Street, London SW1P 3AA (closest tubes: Westminster and St James Park),The debate runs from 6 (for 6:30) – 8pm, and is followed by a drinks reception. For more information, please e-mail

THE STOCKHOLM NETWORK 35 Britannia Row London N1 8QH United Kingdom Tel: (44) 207-354-8888 Fax: (44) 207-359-8888 E-mail: Website:


Eye on Europe 4  

In this issue of the Stockholm Network's quarterly newsletter, Ukraine's allegedly tainted elections are examined, member think tanks are pr...

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