Václav Linkov
A Libertarian view on the corruption problem
1.
Introduction
The
corruption (manipulation with some citizens/clients by
non-standard way) we can split by entity, which this corruption made with that
citizen/client, to two parts: The corruption of the state and the corruption of
private subject. From a libertarian view isn't problem the second of them:
Private subject is right to use its property as it want and then it must to
vindicate its act on the market. However, the problem from this view is then
the corruption of the state and that we can minimize best way if we start to
minimize state itself and number of its officers. The fact, that it brings
economic contribution
too, is introduced in the books of Friedrich August von Hayek and his thoughts
we present in the first part of text1). Hayek had a concept how this
minimization can be done, but he didn't expend all questions, that we can ask.
Then, in the second part of the text we introduce general thoughts from 45
issues of the czech libertarian magazines Laissez-Faire and Terra Libera2).
We adduce some more concrete thoughts about how this journals want to make some
decrease of the Czech state on the end of this text.
2. F.A. von
Hayek
a) spontaneous order and minimal
state
One of the basic notions of Hayek's thought is
the one of “expanded (market) order” - the order, which keeps up large
(mercantile) society and which replaced old order of small groups of people,
the old order, that is however natural
for people.
Each of this orders have its own morality:
"We have hereditary morality of our instincts (solidarity, altruism etc.).
The ways of action following it, are not enough to preserve our
population."3) This traditional morality cannot "have
cognitive and organisational functions, which are excluded by its rules."4)
But we have "the second, alternative morality (thrift, honesty, private
property), which makes and preserves the expanded order." 5)
This order "breeds and requires private property and freedom"6)
and then the act now isn't good or bad by its aim (as it was in old morality),
but by preserving or non-preserving rules of spontaneous order7).
Then "all people, who live in expanded order have benefit from state, when
they don't treat each other as a fellow and preserve rules of the new order
instead the rules of altruism."8) It is caused because "we
haven't other way how to give the notice to the individual, what he has to do
to make maximum of product, than the free market competition."9)
This competition is better then our reason10).
Expanded order can't exist without rules of free
competition - "if we will use rules of microcosm (our families for
example) for the macrocosm (our civilization), we will destroy macrocosm."11)
"Intellectuals can bring some new and better "social" rules of
morality and say this rules can replace functions of competition rules – but it
will be only recidivity of old morality of microcosm, which can't support lives
of billions of people."12) "Observing of rules of expanded
order are then more profitable then most altruistic acts of concrete
individual."13)
If we thought about genesis of spontaneous
order, we saw, that it rises without human help. It can't be designed by human
mind, because "the mind itself is the product of evolution"14)
and "complexity of human traditions is too large for capacity of
individual mind."15) Then "businessmen mostly do not have
a lot of infomation about concrete wants of people, who are final consumers of
products of their business."16) It can be reality, becose
"distribution of sources is made by non-individual processes and
individuals, who have their own aims, can't know, what will be the pure result
of their interaction."17)
Although, there exist people, who "presume,
then when people was able to make system of rules to coordinate their
aspirations, they will be able to construct better system."18)
This thoughts are tokens of the "reluctance against recognition, than
morality rules are here for longtime effects - effects, that we cannot imagine”19),
and than we can “make configuration of unknown only that way, when we move it
to compose itself."20) Hayek attacks macroeconomy as a
theoretical screen of this thought - for this thoughts is very good its
"extensive exploitation of mathematics, which is only some type of magic
at most, but which have strong effect in politics."21)
Hayek recalls, that central regulation of
economics defended by intellectuals is impossible, because "the only one
known method, how to get informations about comparative advantages of different
sources, is market. These informations are diffused and we can't collect them
and give them to some pilot authority."22) If we want to help
generating of order, then "we have only to exclude elements, that don't
respect its rules. Our attainments get smaller as the complexity of the order
gets larger."23)
Then if we want to be instrumental to have maximal power of economics, we must have as small and as simple state, as we can have, to keep up spontaneous order only.
Politics of this state now have not to "be
conducted by efforts to get some concrete results, but it must tend to ensure
general order, which will guarantee to everyone best chance to achieve his own
goals. Then the politics of this society have to deflate force to assert
universal rules, which improves chances of everyone. These rules can only
destine chances, not results."24)
This politics creates the order, which "we
will choose, if we want to only pure fortune will decree about our starting
position."25) But if we establish this order, we "have to
lose the strongest thing, which encourages coherence of society, - the visible
common aim, represented by idea of social justice in modern society."26)
If we follow this idea, "it probably causes more inequity by making of new
privilegies, than it make life of the poor easier."27)
b) political organization of
minimal state
What Hayek says about organization of his
minimal state?
First, the power of its parliament may not to be
unlimited: "the unlimited power induces, that parliament can't reach the
state, when general rules accepted by this parliament dominate, but the
majority in it must constantly buy support of many interests to be
retained."28) This
"one omnipotent legislature then corrupts the government."29)
As an example, how the interest groups corrupt politicians, Hayek presents the
way the politicians buy support of intellectuals by grants for sciences and
arts, although most of people leave this grants well enough alone. This type of
trade "can be stopped only if we stop power of government."30)
Hayek emphasizes "we don't be able to stop greed of all groups, if we
allow them to use government's power to redistribution of product."31)
Then we have to leave dogma of unlimited sovereignty of voter and his
parliament - the individual will have to accept only that conclusions of this
parliament, which respect general rules installed by legislature - "power
of representatives of majority have to be unlimited only for operate with
concrete facilities, which they have from people to use."32) And parliament must make negative principles
only - "in the society of free people the highest authority mustn't give
off any commands, unless it is the war time."33)
Second, Hayek thought, our parliaments have one big defect: "We delegate to our parliaments two dissonant rights. We call them "legislature", although the most of their work isn't legislative, but it is directing of concrete government's acts."34)
The real law-making is "still more
delegated to bureaucracy, which has got no power to control government"35)
in addition.
Therefore, Hayek calls for reform of Europe's
constitutions: "we have to have three sections of parliaments. First one
for make stable framework of constitution and convetions of it can be called
only in long periods; second one to innovate general rules of behaviour and the
third for direction of government's sources."36) He enlarges
"the legislature has to represent meaning of people about right type of
government behaviour and the
government's parliament has to follow thought of people, what concrete acts
have to be done in frame created by legislature."37)
Hayek calls for another thing too. He says "most of services, that are now offered by central government, should to be devolved to local governments, which should have to compete in gaining of citizens."38)
c)
Hayek's concrete plans to minimize the state
We recall on the begin of this section Hayek
don't want to minize state only for offer a security - he accepts, if
government of advanced society use its power to for offering "a lot of
services, that can't be offered by market or can't be offered in sufficient
quantity."39)
Hayek says "the government have to controll
product quality and he have to create building codes, safety and health rules,
certificates of competencies to do some works and limits for saling of drugs,
arms. explosives etc."40)
He wants to education and some culture of minorities be financed by state too.
But this text is about minimization - what of
state functions want Hayek to be reduced then?
He generally dislikes state monopolies -
"all of that services, which are
state's monopolies now or government wants them to be monopolies, with
exception of assertion of law and having army and police to this assertion. All
services begin from education and social security across transition, postal
service, telegraph, telephone and radio services to problem of money
especially."41)
He says about
state's money administration "it was established not for people, but for
rising of government's rights. Then people are exposed to perils each day,
which could be eliminated if government lose his right on money."42)
Then he calls for abortion of state's money
monopoly, because "then market will be able to show his chances
better."43)
He calls for abortion of antitrust law:
"Not trust itself, but only inhibition of competition is bad. Trust
increased only by its efficiency is good."44) Hayek want to
forbid trust’s price discrimination although: "This medicine in arms of
potential competitors is better then coercion from supervisory authority."45)
Hayek stand out against privileges of labor
unions and copyright law too. He disbelieves, "that here exists only one
literary production, which shouldn't be written, if its author shouldn't have
copyright."46)
3. Libertarian's plans of minimization of state
Minimal state of Hayek is too large yet, when we
want to uproot corruption by extermination of state bureaucracy. Then plans of
czech libertarian journals Laissez Faire (LF) and Terra Libera (TL) yields us
better theoretical model for their major radicality. One and only one rule,
which must produce all legal regulations by meaning of this journals, is
"none behaviour have to be forbidden by law, if this behaviour isn't
physical attack or threat of physical attack of another person or his private
holding."47) The state must not aspire to protect moral or
psychic derogation of people and have only to abide that rule (which is almost
his lone function by meaning of LF and TL), becose "welfare is individual,
can't be recognized by second person and can be affected by really
anything."47) Lets look for state functions, which are
explicitly labeled as totally needless or dedicated to privatization by authors
of TL and LF:
They criticize state regulation of education48)
and monopoly of state postal service the same way as Hayek: "It will be
more effective and it can decrease some prizes if there is a real free market
in postale services."49)
They also criticize state monopolies generally:
"Consumer is always harmed by existence of these monopolies irrespective
of field of them."50)
They hate patents51) and too strong
application of author law too: "there exists no field of business, which
is guarded by state's coercive power too strong as collective management of
laws of authors."52)
TL and LF promote also thought of free banking:
"Don't close this very important sector for competition! Return freedom to
banking, put state out from money!"53)
They don't accept interdict of discrimination on
market in contrast to Hayek. They consider as normal, if "prices are
higher for them, who are capable, ready or forced to pay more"54),
in the case of price discrimination: "the only law, which can be
applicated in this situation, is law of the owner to use his property."55)
They also say, that "this type of discrimination can exists for long time
only there, where some philantropist have limited free market"56),
in case of discrimination on labour market.
They don't support any limitation of private
monopolies consistent with that: "Is absurd to punish producer for thing,
that a lot of people buy his product."57) Number of producers
on market is not important - important is only the chance to free entrance to
that market for competitors. The aim to get the monopoly "is token of
competition only."52) Bad monopoly can be established
"only if the government limits number of producers on some market."58)
They deduce "state can't control the competition on market, because it is
largest thinkable monopoly itself."59)
This journals don't hate only this type of state
regulation however.
It musn't be punished if someone sell product of
low quality to person, who want to buy this product - "prohibited and
punished may be only that type of behaviour, which causes drawback in health or
property for someone."54)
They call for free sale of medicaments then:
"We can't understand, why officers inhibit people from buying of cures. If
someone of his own accord buy some cure, then he must accept all
adventures."54)
They are against regulation of drug market also:
"We must accept human thirst for drugs as natural and moral indifferent,
we must stop calling use of drugs and drug business as "abuse" and we
must stop punishing people for contact with drugs chiefly. People want drugs
for satisfaction of their demands as some other type of product. Creating of
comissions and drafts for war against drugs, domiciliary searches confiscation
of property is not legitimate, although majority of parliament divides for
that."54) "Now is time for stop the war on drugs and for
make the peace after decades of terror."48)
They also be a prop for stop of the human organs
selling regulation60) and regulation of child selling: "Here is
huge potential for exchanging of law for child caring."61)
We can't be surprised then, if we will see they
are for implementation of euthanasia and they are against regulation of some
non-physical products too, especially against punishing of propagation of
fascism: "Prohibition of books (Mein Kampf) is always only dire act of
government, who want to prohibit people to meet all existing opinions and
ideologies."62) We have "only one succes way for
eliminating of fascism: their ideas beat by better ideas, non-logical arguments
beat by logical, a lot of myths beat by a lot of facts. Prohibition of fascism
give advantage for fascist only: They think and their opponents rely on the law
purely."55)
TL and LF also fight against state backing of
some parts of society.
They batter social policy of state63),
call it "soft type of dictatorship of the proletariat"58)
and predicate it is responsible for large growth of bureaucracy in the last
century. Then they have the solution: "withdrawing of first cause of that
problems - destroying of state system of social welfare."64)
LF and TL favours abandon of state system of
health care: "As absolutly free and private line the health service will
be able to appease demand for health care better then present state system. It
will better reflect preferences of individuals and probably it will cause wider
range of health care. And we can't conceive, where ethical superiority of
accesible health care over private property and accountabilty for himself
comes."65)
They stand out against state financing of civic
activities66) and funding and regulation of culture:"Everyone
can remember gorgeous culture experiences growth up without state's money or
total idiotism, which was financed by state. State backing then can't be
assurance of good art."67)
They deprecate state financing of building
houses68), regulation of housing and backing of farming: "It's
nice, that we have our own producers of corn,
meat and milk, but this fact largely ties chances to rising of our
economics."69)
Enviroment conservation made by free market is better then that made by state regulation: "Finding of ways, how to put to nature wealth some price to it can be changed on the market, is the key to better conservancy work. Ownership creates in people interest to protect their property, market stimulates owner to conserve value of his goods."70)
Most extreme plans, which was introduced in LF and
TL, are plans to transformation of security offering and judging from state to
private providers to insert competition to this sector: "Is rightful if we
want from state to stop doing, which can be done by private sector. Is rightful
to fight against jurisdiction or to leave it, if we thought it is unjust."71)
Trade protectionism have to be stopped by their
meaning: "Country, who buys goods from native producers, although it is
more expensive than goods from other countries, lose all price difference between
those producers. Then if some factory can't compete in price and quality with
others, it has to die. That factories, which needs duties and prohibition to
be, are vermins on the body of nation only."72) They call for
abolition of all duties and import quotas then.
They hate, if "state discriminate people
for their race or nationality, becose he canceled them to work if they have bad
colour of passport"55) and they wants to legalize cheap work of
foreigners and accept the child work in developing countries: "We have to
awake, than if supranational corporations will mustn't employ children, it will
cause only, that children will work hardly, with worse working conditions and
for lower hires - they can't go to school or play handy-dandy with someone."49)
It's better to create international free market than allocation of sources from some authority now - supernational corporations can help to developing countries best: "Everyone, who fights against starvation in world, has to be a leader of defenders of labour distribution and free market."69)
4. Some plans
to reduce bureaucracy in the Czech republic
We saw, that libertarian authors design a lot of
changes in states and political systems to cut down number of state officers
(and their corruption). We can say (with hyperbole), that if we apply this
style of corruption reducing ("death officer=good officer"), then we
will discharge 99% of problems descend from corruption. It's questionable now,
if these methods are really applicable to practical politics. I don't know it
and I think, everyone can give another answer to this question. Then let's look
for some concrete demands of LF and TL in Czech's politics last years to
illustrate this application problem at the end of this text. It isn't dramatic
anywise, that these demands aren't too radical as demands included in text
above.
For example in 12/98 issue LF declares against
plans of enviromental organizations to reduce number of supermarkets in cities,
which was indeed by enormous rise of nuber of companies, who made this business
last years: "Supermarkets fill free place on the market only, as we can
see if we are watching people's interest to shopping in them. This is normal
trend on market - small shopkeepers
have only to accept this trend."59)
LF and TL also declare against fight contra prostitution, which got giant dimension near border with Germany after velvety revolution. It is normal way to earn living, because "it is free contract between two or more people, which does not damage anyone"54), and then it must not be regulated.
Czech parliament disputes three times about
registered partnership for homosexuals in last years and these journals boosted
this: "Problems, which homosexuals have with government agencies, are only
some type of punishing, which is organized by state."54)
Europe Union isn't favourite institution of TL
and LF - hate a lot of EU standards, which "are very dubious most
times"73) and which create large field for corruption:
"There rising lot of lobbies every day, who want for more and more absurd
regulations, privilegies and grants with EU banner over their heads."73)
The euro currency is the worst thing in EU for them although: "Euro is
instrument to allocation of sources and it will do some nations good, some
nations wrong."74)
LF wrote about last year crisis in Czech television, which introduced question of existence of public service televisions. It menaces to this type of televisions constantly, "that they come instruments of political lobbies."75) Then it will be better, if Czech television will be privatized - "it's the best for maximize of thought competition."75)
The cancellation of conscription is very
frequent political theme in Czech republic last year - LF wrotes "it is
shocking violation of human rights"71) and TL says: "Theoretical
question, if the conscription is lawful or not, can't be in Czech republic with
her corruption and traditional nepotism
queried. Artists, sportsmen, lawyers and one cabinet member even avoid forced
military (or substitutive) service in 90's. And forced military service isn't
forced for friends of supreme elity."64)
A lot of corruption could be destroyed if conscription and above wroted authorities of government will be cancelled. And that is message, which I want to give to this text...
Comments:
1) I
couldn´t find english versions of used Hayek books in Brno,
then I had to use the czech and translate citations. These can be inexact then,
but sense of them is the same. Aim of the text - to illustrate Hayek's thought
- isn't threatened then.
2) Each issue of this journals has only four
pages. I have identified the references only by journal (TL or LF) and issue
then. Laissez Faire is available on http://www.epot.cz/lf, Terra Libera on
http://www.libinst.cz, both only in czech language. However it doesn't threat
message of text too - thought of this journals is introduced deep enough in the
text.
3) [Hayek 1995] p.77 4) ibid.
p.13 5) ibid. p. 77
6) ibid. p. 44 7) ibid. p. 89 8) ibid. p.18
9) ibid. p.
12
10) ibid. p. 15 11)
ibid. p. 23
12) ibid. p.
82 13)
ibid. p. 24 14)
ibid. p. 26
15) ibid. p.
87
16) ibid. p. 50 17)
ibid. p. 79
18) ibid. p. 12 19) ibid. p. 64 20)
ibid. p. 91
21) ibid. p. 108 22)
ibid. p. 85 23) ibid. p. 92
24) [Hayek 1994] p. 238 25) ibid. p.
250
26) ibid. p. 266
27) ibid. p. 259 28)
ibid. p. 274 29) ibid. p. 280
30) ibid. p.
284
31) ibid. p. 388 32) ibid. p. 276
33) ibid. p. 373 34)
ibid. p. 290 35) ibid. p. 296
36) ibid. p. 301 37)
ibid. p. 352 38) ibid. p. 321
39) ibid. p. 305 40)
ibid. p. 320 41) ibid. p. 386
42) ibid. p. 316 43) [Hayek 1995] p. 113 44) [Hayek 1994] p. 336
45) ibid. p. 338 46) [Hayek 1995] p. 42 47) [LF] 1/99
48) [LF]
10/98
49) [TL] 6/01 50)
[TL] 11/00
51) "If patent will be cancelled by governments,
then the situation on markets will be cleared largely."
[LF]
10/00
52) [LF] 10/00 53) [LF] 4/99
54) [LF] 2/99
55) [LF] 7/99 56) [LF] 4/01
57) [LF] 3/01
58) [LF] 6/00 59) [LF] 12/98
60) "We
think it is not acceptable, when market with human meat is prohibited, because
then violence of state is used against non-violent exchange between two sides
of transaction." [TL] 7/00
61) [TL] 7/00 62) [TL] 1/01
63) "There is no law to some quality of
life." [LF] 9/99,
"Social policy of state destroys charity and community
involvement." [LF] 4/01
64) [TL] 3/01 65) [TL] 5/00
66) "When someone can't collect sufficient
portion of money to finance some activity, it is result of free choose of free civics." [LF] 11/98
67) [LF] 10/99
68) "The
check, which gives some articles for people's berth, forces magnitudes to
people and inhibits their preferences only. This regulation of enquiry on
market implies highstake lavishing of investments of rich people, who could
invest their money better way." [LF] 1/00
69) [LF] 5/00 70) [LF] 4/00
71) [LF] 3/99
72) [LF] 7/00 73) [LF] 11/98 74) [LF]
5/01
75) [LF] 1/01
References:
[Hayek 1995] Hayek, F.A. von: Osudná domýšlivost:
Omyly socialismu (The Fatal Conceit: The Errors of
socialism), Sociologické nakladatelství, Praha 1995
[Hayek 1994] Hayek, F.A. von: Právo, zákonodárství a
svoboda (Law, Legislation & Liberty), Academia,
Praha 1994
[LF] Laissez Faire, issues 10/1998-6/2001, Petr Mach,
Praha 1998-2001
[TL] Terra Libera, issues 6/2000-6/2001, Liberální
institut, Praha 2000-2001