LIBERTARIANS? LIBERALS? | ¿LIBERTARIOS? ¿LIBERALES?

Oscar Antezana Malpartida, El Dia:

Being libertarian is fashionable. Everyone talks about libertarianism but, I am sure, many without knowing exactly what it means, what it postulates or what it defends. It is fashionable because its arguments are persuasive and simple to market. For example, the libertarian is against taxes because it steals the product of your work effort to give it to others. Of course, who wouldn’t like such a postulate. The concepts are simple and the arguments virtually irrefutable. It is fashionable because Javier Milei, its main interlocutor, is an extraordinary speaker. He has the ability to articulate concepts, theories, numbers with reality like no other in our recent memory has done. Finally, it is fashionable because Latin America is experiencing, or is emerging from, repulsive socialism where the word “freedom” is its crucifix as it is for Dracula and Milei has had the ability to clearly articulate the harsh reality without restrictions.

Let’s start with liberalism, which sounds more familiar to us, but is not necessarily clear either. Liberalism is a political philosophy born in the 17th century in England and France that emerged as a reaction to monarchical absolutism. John Locke, one of the main proponents of this theory, defended the defense of freedom, property and autonomy, and a fundamental concept is that of ‘laissez faire’, which means that there is no intervention by the State. on a commercial level, but not in life in general. This is classical liberalism in a philosophical sense. Liberalism proposes the self-limitation of the State; that is to say, the State has to limit itself to certain functions, above all to the protection of the rights of individuals and let them do their thing.

Then different interpretations of Locke’s theory emerged, one of which is libertarianism. Depending on the interpretation of Locke’s ideas, some have a concept of a liberalism where the State cannot or should not redistribute through taxes. The libertarian liberalism proposed by Milei was born in the second half of the 20th century, after the Second World War. Libertarians believe that respect for individual rights leads to a minimal state that is limited to protecting life, bodily integrity, and private property.

Compared to the philosophy that Milei has resurrected, there are some differences with neoliberalism, typical of the 80s-90s in Bolivia. First, it is not clear to define neoliberalism; this has been applied in Chile, Bolivia, Argentina and other countries and, although the main guidelines were common, the recipe for economic measures was not the same in each case and their execution even less so. Second, regardless of the “model” that is applied, if its implementation is contaminated by corruption, among others, it will not work as expected. Except in socialism which corruption in all its forms is part of.

Neoliberalism is a set of economic policies and institutions that have had the so-called “Washington Consensus” as a reference. Libertarianism is a moral doctrine that defends the freedom of people in any area, including economics. Therefore, it does not agree with any regulation or limitation that affects the freedom that, obviously, is generated from the State. It promotes freedom and private property in such a way that each individual makes their own decisions voluntarily, whether economic, physical security, their own body, etc. Libertarianism is powerful as a doctrine and tremendously useful as a guide for the design of public policies.

However, libertarianism as such is impossible to implement because it does not fit the reality of any country. You cannot stop paying taxes, you need a government, albeit a limited one. Without taxes there is no State. We cannot stop funding public education and health, both are pressing needs. This reality brings libertarianism, as a doctrine, closer to neoliberalism as a set of public policies.

Now, what can be the real contribution of the libertarianism renewed by Milei? First, the explicit decision to reduce the size of government to the minimum that is appropriate according to the development characteristics of each country. This policy was not explicit in Bolivia or Argentina or other countries. Second, and therefore, transfer all possible economic activities to the private sphere where individuals have the freedom to interact, transact, make investments, spend, etc. among them. In this section, minimal and clear regulations will be needed (undesirable from the point of view of libertarianism). Third, this implies that the State has to be strong and competent, not big, to design simple regulations and for their implementation to be effective without being contaminated by corruption. Fourth, in turn, this would imply having qualified people in public administration and total transparency of information via the Internet at the three levels of government and public spheres (e.g. justice).

This would be an extraordinary opportunity to reduce and strengthen the State. Institutions are like the scaffolding on which the economy is based and it is the most urgent and priority thing to improve. These must be transparent and fair, and must promote freedom in all its facets. The foundation of these institutions is the rule of law. Within this, the justice system is central; Without it there is no order, certainty, equality, or civilized life.

At the end of the day, it is best to discuss policy options and not ideologies. On the one hand, we must apply what works, regardless of the “model”, taking into account the short, medium and long term. The execution of this type of policy will have high costs mainly in the short term, and it is important to mention this from the beginning to manage expectations. Stop lying, cheating, disappointing or telling half-truths to people. This has been done for decades. Bolivia is financially bankrupt, institutionally destroyed, ecologically broken and morally degenerated. This situation has been expanding and devouring Bolivia like a fire for more than 18 years. Just in case, let’s be clear: the firefighters who come to put out this fire will not be to blame for the destruction caused by it, they are the ones who caused the fire.

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