IN THIS ISSUE: Independent Policy Forums

VOLUME XVI, NUMBER 4

Forum: Bureaucracy New Book Acclaims vs. the Environment Electric Choices

any environmental laws not only in- n the late 1970s, the regulatory landscape in Mfringe upon property rights and hamper Ithe United States began to change signifi- economic growth, they also harm the environ- cantly as competition and deregulation were ment, according to the speakers at the June introduced to telecommunications, airlines, 28th Independent Policy Forum, “Bureau- trucking, natural gas and oil transportation, cracy vs. the Environment: What Should Be financial services, and other industries. Done?” Eventually reform came to the electric power First, Independent Institute Academic Af- industry, but in a more piecemeal fashion. fairs Director Carl Close noted criticisms that What lessons can be learned about the conservationists have leveled against various successes and failures of past restructurings? environmental policies, and then showed how How much regulation does the electric industry

(L. to R.) Michael Shaw, Randy Simmons, and Carl Close address the Independent Policy Forum. the findings of Re-Thinking Green: Alterna- tives to Environmental Bureaucracy, a book he co-edited with Robert Higgs, shed further light on these problems and their cures. Three main problems plague environmental regulations today, Close argued: they are inef- ficient, leading to wasted resources and slower (continued on page 3) IN THIS ISSUE: Independent Policy Forums ...... 1, 7 need? Are coordination and distribution best New Book on Electric Power ...... 1 handled publicly or privately? If the latter, President’s Letter ...... 2 would for-profit or non-profit organizations Independent Institute in the News ...... 4 better serve consumers? The Independent Review ...... 5 In Electric Choices: Deregulation and the Future of Electric Power, edited by Andrew N. Exposing Pork in the Defense Budget ...... 6 Kleit (Pennsylvania State University) ($29.95) Tax-wise Gifts for 2006 ...... 8 (continued on page 3) 2 The INDEPENDENT

EXECUTIVE STAFF DAVID J. TH EROUX, Founder and President MARY L. G. TH EROUX, Vice President MARTIN BUERGER, Vice President & Chief Operating Ofﬁ cer ALEXANDER TABARROK, Ph.D., Research Director BRUCE L. BENSON, Ph.D., Senior Fellow IVAN ELAND, Ph.D., Senior Fellow ROBERT HIGGS, Ph.D., Senior Fellow ALVARO VARGAS LLOSA, Senior Fellow RICHARD K. VEDDER, Ph.D., Senior Fellow K. A. BARNES, Controller JOHN CAMPBELL, Development Director CARL P. CLOSE, Academic Affairs Director PAT ROSE, Public Affairs Director President’s Letter: FRED HAMDEN, Sales and Marketing Director

BOARD OF DIRECTORS Congratulations to All GILBERT I. COLLINS, Private Equity Manager ROBERT L. ERWIN, Chairman, Large Scale Biology Corporation ith our 20th Anniversary this year, we are JAMES D. FAIR, III, Chairman, Algonquin Petroleum Corp. PETER A. HOWLEY, Chairman, Western Ventures Whonored by the many awards being received ISABELLA S. JOHNSON, Director, Speakman Company W. DIETER TEDE, Owner, Hopper Creek Winery for the superb work of our fellows. DAVID J. THEROUX, Founder and President, The Independent Institute MARY L. G. THEROUX, former Chairman, Garvey International • The Thomas S. Szasz Award for Outstand- PETER A. THIEL, Managing Member, Clarium Capital Management ing Contributions to the Cause of Civil Liber- SALLY VON BEHREN, Businesswoman BOARD OF ADVISORS ties has gone to Senior Fellow Robert Higgs. HERMAN BELZ Professor of History, University of Maryland THOMAS BORCHERDING Coinciding with his new book, Depression, Professor of Economics, Claremont Graduate School BOUDEWIJN BOUCKAERT War, and Cold War, the award is a tribute for Dr. Professor of Law, University of Ghent, Belgium JAMES M. BUCHANAN Higgs’s work on how government usurps liberty Nobel Laureate in Economic Science, George Mason University ALLAN C. CARLSON by creating and exploiting fears. Dr. Higgs also President, Howard Center for Family, Religion, and Society ROBERT D. COOTER received the Friedrich von Wieser Memorial Herman F. Selvin Professor of Law, University of California, Berkeley ROBERT W. CRANDALL Prize for Excellence in Economic Education from Senior Fellow, Brookings Institution RICHARD A. EPSTEIN James Parker Hall Distinguished Service Professor of Law, University of Chicago the Liberal Institute in Prague. A. ERNEST FITZGERALD Author, The High Priests of Waste and The Pentagonists Alvaro Vargas Llosa, Senior Fellow and B. DELWORTH GARDNER • Professor of Economics, Brigham Young University Director of our Center on Global Prosperity, has GEORGE GILDER Senior Fellow, Discovery Institute NATHAN GLAZER received the first Juan Bautista Alberdi Award Professor of Education and Sociology, Harvard University WILLIAM M. H. HAMMETT from the Hispanic American Center for Economic Former President, Manhattan Institute RONALD HAMOWY Research for “promoting the institutions of free Emeritus Professor of History, University of Alberta, Canada STEVE H. HANKE societies in the Americas.” The Institute also Professor of Applied Economics, Johns Hopkins University RONALD MAX HARTWELL received the Sir Antony Fisher International Emeritus Professor of History, Oxford University JAMES J. HECKMAN Memorial Award for our book by Mr. Vargas Nobel Laureate in Economic Science, University of Chicago H. ROBERT HELLER President, International Payments Institute Llosa, Liberty for Latin America. The award is WENDY KAMINER Contributing Editor, The Atlantic Monthly presented by the Atlas Economic Research Foun- LAWRENCE A. KUDLOW Chief Executive Officer, Kudlow & Company dation for “publications deemed to have made the JOHN R. MacARTHUR Publisher, Harper’s Magazine greatest contributions to public understanding of DEIRDRE N. McCLOSKEY Distinguished Professor of Liberal Arts and Sciences, University of Illinois at Chicago J. HUSTON McCULLOCH the free society.” Professor of Economics, Ohio State University FORREST McDONALD • Senior Fellow Bruce Benson was awarded Distinguished University Research Professor of History, University of Alabama THOMAS GALE MOORE the Adam Smith Award, the highest award of Senior Fellow, Hoover Institution CHARLES MURRAY the Association of Private Enterprise Education Senior Fellow, American Enterprise Institute MICHAEL NOVAK for his “lasting contribution to the perpetuation Jewett Chair in Religion and Public Policy, American Enterprise Institute JUNE E. O’NEILL Director, Center for the Study of Business and Government, Baruch College of the ideals of a free market economy.” CHARLES E. PHELPS Provost and Professor of Political Science and Economics, University of Rochester Research Analyst Gabriel Gasave has PAUL CRAIG ROBERTS • Chairman, Institute of Political Economy received the Fundacion Atlas’s Freedom Award NATHAN ROSENBERG Fairleigh S. Dickinson, Jr. Professor of Economics, Stanford University SIMON ROTTENBERG for Brave Defense of Liberty for his “permanent Professor of Economics, University of Massachusetts PAUL H. RUBIN contribution to the defense of liberty.” Professor of Economics and Law, Emory University BRUCE M. RUSSETT • For the third year , the Independent Institute Dean Acheson Professor of International Relations, Yale University PASCAL SALIN has received the highest rating of Four Stars Professor of Economics, University of Paris, France WILLIAM F. SHUGHART II (★★★★) by Charity Navigator, the premier orga- Robert M. Hearin Chair and Professor of Economics, University of Mississippi VERNON L. SMITH Nobel Laureate in Economic Science, George Mason University nization rating non-profit organizations, and is JOEL H. SPRING Professor of Education, State University of New York, Old Westbury ranked in the top 10% of American policy organi- RICHARD L. STROUP Professor of Economics, Montana State University zations, ahead of virtually all other think tanks. THOMAS S. SZASZ Emeritus Professor of Psychiatry, State University of New York, Syracuse Institute books such as Electric Choices (p. ROBERT D. TOLLISON Robert M. Hearin Chair and Professor of Economics, University of Mississippi ARNOLD S. TREBACH 1), our journal The Independent Review (p. 5), Professor of Criminal Justice, American University GORDON TULLOCK events (pp. 1, 7), media projects (p. 4), and other University Professor of Law and Economics, George Mason University GORE VIDAL programs are providing the crucial difference. Author, Burr, Lincoln, 1876, The Golden Age, and other books RICHARD E. WAGNER Your tax-deductible support as an Independent Hobart R. Harris Professor of Economics, George Mason University SIR ALAN WALTERS Associate Member makes this far-reaching work Vice Chairman, AIG Trading Corporation PAUL H. WEAVER possible, while providing you with our new stud- Author, News and the Culture of Lying and The Suicidal Corporation WALTER E. WILLIAMS Distinguished Professor of Economics, George Mason University ies plus other benefits (see enclosed envelope). CHARLES WOLFE, Jr. We welcome your involvement! Senior Economist and Fellow, International Economics, RAND Corporation THE INDEPENDENT (ISSN 1047-7969): newsletter of The Independent Institute. Copyright ©2006, The In de pend ent In sti tute, 100 Swan Way, Oakland, CA 94621-1428 • 510-632-1366 • Fax: 510-568-6040 • Email: info@independent. org www.independent.org. The INDEPENDENT 3

Independent Policy Forum: Bureaucracy vs. the Environment (continued from page 1) economic growth; they are often ineffective top-down authoritarianism contrasts with his and counterproductive; and too often they are own successful private efforts to restore wildlife invasive, undermining the legal and political habitat near Santa Cruz, California. branches of our social environment. After il- Finally, political scientist Randy Simmons lustrating these problems with examples drawn detailed the flaws of the Endangered Species from hazardous-waste cleanup, urban planning, Act, drawing on his two chapters in Re-Thinking and the prosecution of environmental crimes, Green. The ESA, he explains, pits endangered he then discussed six principles for protecting species against property owners, thereby giv- environmental amenities while also avoiding ing property owners disincentives to protect problems caused by the perverse incentives that any endangered species on their property. He lead to bureaucratic failure. then discussed several private conservation Next, environmental entrepreneur Michael funds—inside and outside the United States— Shaw (Proprietor, Liberty Garden) discussed that have successfully enlisted the efforts of the flaws of the “sustainable development” private property owners. movement, such as its advocacy of curtailing A transcript for “Bureaucracy vs. the Enviorn- private property in order to promote environment is available at: www.independent.org/ mental bureaucracy. Shaw showed how this store/events/event_detail.asp?eventID=119.•

New Book: Electric Choices (continued from page 1) paperback), fifteen scholars address these and In contrast, variable prices would have given other issues that will determine whether elec- consumers incentives to seek out the best power tricity will be cheap and reliable, or expensive supply contracts for themselves, as well as to and prone to blackouts. reduce demand during periods of high prices. Here are some of the book’s highlights: • Over 50 million customers in the U.S. and • California and Pennsylvania restructured Canada were hit by the $6 billion northeast their electricity sectors in the late 1990s but blackout of August 14, 2003. The government’s had very different results. Whereas California in final report accurately diagnosed the causes, 2000–2001 suffered blackouts, sharply higher but its 46 recommendations were misguided prices, and utility company bankruptcies, because they emphasized greater regulatory Pennsylvania’s deregulation has enjoyed reli- oversight and centralization—policies that fail able supply at relatively low and stable prices. to enhance the system’s resiliency, flexibility, The California crisis brought restructuring to and adaptability. Genuine reliability must re- a halt, but it should have prompted policy- flect consumer demand for reliability, as well as makers to look more closely at differences in technical improvements on the supply side. restructurings. Opening electricity generation to compe- • Restructuring eliminates the monopoly on tition sparked a revolution in the electricity retailing held by local distribution companies. industry, but for the benefits to be fully real- In a properly restructured market, consumers (continued on page 7) can choose their electricity producer just as they select their long-distance provider. In addition to lower prices and greater efficiency, Praise for Electric Choices this competitive environment can improve reli- “Electric Choices is a must-read for policy ability and quality, which would be especially makers and academics alike, as well as anyone welcomed by computer server farms and high- interested in real energy solutions.” tech manufacturers. Customers can have even —Pablo T. Spiller, Distinguished Professor more options if restructuring invites Distributed of Business, Univ. of California, Berkeley Energy Resources (fuel cells, microturbines, “These leading experts explain why and how wind turbines, photovoltaics, etc.), which en- well-run markets are the best deal electricity able customers to meet their own energy needs customers are going to find.” and to sell any surpluses over the power grid. — G. Mitchel Wilk, former president, • When California suffered electricity short- California Public Utilities Commission ages in 2000–2001, consumers had no incen- “Electric Choices is a superb book.” tives to use less: caps on retail prices had sent — Peter Cramton, Professor of Economics, them the wrong signal. Price caps served to University of Maryland bankrupt utilities and strain the electrical grid. 4 The INDEPENDENT

The Independent Institute in the News • Opinion: Senior Fellow Alvaro Vargas his op ed on Iraq ran in Philadelphia Daily Llosa’s weekly Washington Post Writers News. Research Fellow Gabriel Roth’s op Group syndicated column continues to be eds on transportation ran in Business First picked up by national and international out- and The Star (Chicago). Research Analyst lets including: Deseret Morning News (UT), Anthony Gregory’s op ed on private prisons Fresno Bee, Stuart News (FL), Press Journal was published by the Contra Costa Times. (FL), Al Dia (TX), Sun–Sentinel (FL), Libre Research Director Alexander Tabarrok’s (FL), Downeast Coastal Press (ME), San op ed on the economics of immigration ap- Diego Union–Tribune, El Diario/La Prensa peared in the Pittsburgh Tribune–Review. (NY), Statesman Journal (OR), El Nuevo • Books: Plowshares and Pork Barrels was Dia (PR), Dos Mundos (MO), La Opinion, reviewed in the Educational Book Review; and Prensa Hispana (AZ). In addition, The Restoring Free Speech was reviewed by Wall Street Journal published three Vargas The Federal Lawyer and ACPA Journal Llosa articles—on Mexico, Cuba, and Hugo of College Student Development; Against Chavez. Other op eds commissioned by the Leviathan was reviewed in The Quarterly Center on Global Prosperity included Journal of Austrian Economics; Resurgence Carlos Sabino’s pieces on Mercosur and of the Warfare State was reviewed on the on Venezuela’s Chavez, both published in Mises Institute’s web site; Street Smart was the Latin Business Chronicle, as well as Re- reviewed in The Midwest Book Review; A search Analyst Gabriel Gasave’s op ed on Poverty of Reason was reviewed in Cana- Ecuador, published by Instituto Ecuatoriano dian Geographer; and The Challenge of del Economía Política. Adjunct Fellow En- Liberty was reviewed in the Orange County rique Ghersi’s op ed on Peru’s mining crisis Register and The Futurist. appeared in Living in Peru. Senior Fellow • Broadcast: Senior Fellow Ivan Eland dis- Benjamin Powell’s op eds for the Center cussed international and domestic security on Entrepreneurial Innovation included issues on KPIX–TV, al–Jazeera, Newsweek On Air, CNN Radio, WUSA–TV, WSAR, WOL, KCBS, KPFA, and KPSI. Senior Fellow and national security analyst Charles Peña, who recently joined the Center on Peace and Liberty, was interviewed on WTOP and WKIZ, and appears regularly on MSNBC. Research Fellow Wendy McElroy discussed working women on KVI radio. Senior Fellow Alvaro Vargas Llosa discussed developments in Latin America on Voice of America TV, BBC Radio’s Independent Institute research Fellow Ben “World Update,” Mexico City’s Reporte Powell is interviewed on NBC-TV in San Jose. 98.5, Miami’s Radio Marti, Argentina’s such issues such as immigration, the trade Radio 10, Cadena Ser radio, and WNYC’s deficit, and California’s oil tax proposition, Brian Lehrer Show. Founder and President and were published in Silicon Valley/San David J. Theroux was interviewed on Jose Business Journal, Costco Connection, NBC11–TV on the partitioning of Iraq, and Atlanta Latino, and El Diario La Prensa on KTVU–TV on Bush’s reaction to the NIE (NY). Ivan Eland, Director of the Center leak. Senior Fellow Benjamin Powell was on Peace and Liberty, had op eds published interviewed on NBC11–TV about suspected by the San Diego Union–Tribune, Ameri- oil price manipulation. can Conservative, Vision Hispana (CA), • Print: Charles Peña was interviewed by American Chronicle, Global English, Pal- USA Today and UPI about developments estine Chronicle, Pittsburgh Post–Gazette, in the Middle East. AP quoted Ivan Calgary Herald, MotherJones.com, and Eland on mass transit’s vulnerability, and Orlando Business Journal. Research Fel- Christian Science Monitor interviewed low Charles Peña’s 9/11 anniversary piece him about Iraq. Alvaro Vargas Llosa appeared in the Times Record (Maine), The was also interviewed by AP about the Province (BC), and Daily Record (NJ), and anniversary of Che Guevara’s death.• The INDEPENDENT 5

The Independent Review Government vs. Science • The Condition of Women he Independent Review continues to pub- The Condition of Women Tlish landmark scholarlship on timely issues • In the 19th and 20th centuries, the status of (subscription: $28.95/year). women improved the most in economically pro- Government and Science gressive areas dominated by Western culture. • The U.S. government has funded scientific re- In developing areas dominated by non-Western search (broadly conceived) since the early days culture, however, women remain more or less of the republic—the Lewis and Clark Expedi- subjugated, and in some countries they are tion and Samuel Morse’s electric telegraph, for stripped of any rights, explains Michelle Fram example. But government funding of science Cohen (“The Condition of Women in Develop- accelerated after World War II, with defense- ing and Developed Countries”, Fall 2006). related R&D leading the way. By 2005, federal “Exploitation and abuse of women, includ- R&D expenditures were about $80 billion for ing outright violence, are acceptable in coun- defense and $60 billion for non-defense. tries where women have an inferior social status Government funding is hardly neutral in its by customary or formal law,” writes Cohen. effects on the institutions of scientific research: “Violence against women and girls is a direct it helps shape which projects are considered corollary of their subordinate status.” worthy, which departments a university will Oppression can take several forms, including emphasize, and which professors will get pro- the denial of property rights, “honor” killings, moted. Indeed, many scientists have acknowl- dowry-related subjugation, and lack of legal edged that government funding sometimes protections. Often these injustices are widely has strings attached that can stifle the spirit of independent inquiry. They regret this aspect of government funding, but believe it is an acceptable cost because only government can fund basic scientific research adequately. Because the benefits of basic research cannot be captured by a single firm, but rather, spill over to multiple groups or industries, a system that relied on non-government funding, they believe, would lead to a severe under-investment in basic research. This rationale is hugely influential—it was spelled out in government reports that led to the surge in public science funding, and has been further developed by leading academic economists—but it is deeply flawed both on theoretical and empirical grounds, according to William N. Butos and Thomas J. McQuade (“Government and Science: A Dangerous Li- aison?”, Fall 2006). “Firms can and do hire scientists, encour- aging them to conduct basic research and to publish the results freely,” write Butos and McQuade. “Basic research by firms accounts accepted norms handed down from generation for approximately $8 to $10 billion per year.” to generation. Indeed, about 40% of total funding for basic Poverty and custom in developing countries research comes from non-federal sources, and drive extended families to live together under total industry-funded R&D is nearly twice as the same roof, making young couples subordi- great as federal R&D spending. Firms believe nated to the traditional values of their parents that having their scientists conduct basic re- and grandparents. search (as opposed to only firm-specific R&D) Unattached women, in particular, face stiff will enable their scientists to learn about and economic disadvantages. In some countries make use of published research that would ad- where subsistence farming is the main source vance the firm’s narrower production goals. of livelihood, customary law prevents women See www.independent.org/publications/tir/ from owning land unless their fathers have no article.asp?issueID=47&articleID=598. (continued on page 7) 6 The INDEPENDENT

Independent Policy Report Exposing Pork in the Defense Budget he U.S. defense budget is one of the most “exploit citizen distress over business as usual... Tdeceptive, and therefore effective, tools but ultimately take little action, and in the end, used by members of Congress to fund pet they rise no higher than the general herd and projects which primarily benefit constituents make no difference.” in their home districts. Nor is there much explanation of thousands Typical examples of the non-defense add- of earmarked items listed in the tables of the ons that members of congress make to military Joint Explanatory Statement, which accompa- spending bills are museums, parks, athletic nies the major 2006 military spending bill. events, holiday celebrations, recreational cen- Wheeler’s “snout-to-tail” description ben- ters, and agricultural programs. These may Independent sound benign, but their cumulative effect is POLICY REPORT Congress, the Defense Budget and Pork horrendous. A study of the 2006 Defense Dept. A Snout-to-Tail Description of Congress’s Foremost Concern in National Security Legislation Winslow T. Wheeler* Appropriations Act found 2,847 examples of Executive Summary In the defense bill that currently pays for the of the defense budget to offset the cost. The war in Iraq, the largest modification Congress favorite target is the Operation and Mainte- made was to add $9.4 billion in spending for nance budget that includes spending for items like a Memorial Day celebration, weapons maintenance, training, fuel, and all add-ons costing $9.4 billion. They are often Hawaiian Islands health care, Alaskan the other essentials key to fighting a war. fisheries, breast cancer research, and much Worse still, no one in Congress does more. anything about it, not even the self-described The Congressional Research Service found “pork busters.” In Congress’s new effort to 2,847 of these earmarks, “pork,” costing $9.4 reform itself in the aftermath of the Duke funded by raiding other parts of the defense billion in 2006 alone. Moreover, it has been Cunningham and Jack Abramoff scandals, on the increase since September 11, 2001, the measures adopted to restrain earmarking when Congress spent $7.2 billion for 1,409 are a sham. earmarks. There is a great need to probe the real Worse is how both Democrats and Repub- workings of the “pork process,” which is budget. licans in Congress pay for it. Eagerly adver- much more widespread in government, and tised to the voters back home as good news, which has far more consequences than Ameri- they neglect to explain that they raided parts cans appreciate.

“Worse still, no one in Congress does *Winslow T. Wheeler is a Research Fellow at the Independent Institute, and the Director of the Straus Military Reform Project of the Center for Defense Information in Washington, DC. anything about it, not even self-described ‘pork busters,’” writes Research Fellow Win- Enlightening ideas for public policy . . . Winslow T. Wheeler slow T. Wheeler, in Congress, the Defense efits from first-hand experience: he has worked Budget, and Pork: A Snout-to-Tail Descrip- on national security issues for 31 years for tion of Congress’s Foremost Concern in members of the U.S. Senate and for the Govern- National Security Legislation (The Indepen- ment Accountability Office. dent Institute, 2006; $10.00). See: www.independent.org/publications/poli- Self-declared “pork busters,” he continues, cy_reports/detail.asp?type=full&id=21.•

Independent Policy Forum, Washington, D.C. Should Roads Be Privatized? re the political process and government plained that transportation planning is based on Amanagement the only or even the best political whim, rather than according to supply approaches to road construction and main- and demand. Private enterprise, he contended, tenance? This question and its implications would not be nearly so riddled with pork and were addressed at a recent Independent Policy waste, building “roads to nowhere.” Forum, “Private Solutions for Reducing Road Next spoke Greg Cohen, president of Congestion, Fuel Costs, Travel Time and the American Highway Users Alliance, who Waste,” held at the Institute’s Washington, D.C. illustrated the ever-worsening problem of office on Thursday, September 28. congestion and the insufficient proposals cur- The Institute’s new book, Street Smart: rently considered to alleviate it. He indicted Competition, Entrepreneurship, and the Fu- the crushing regulation and mass bureaucracy ture of Roads ($29.95 paperback), served as that wastes decades at a time by conducting inspiration for the event, which featured two “planning studies” without any real account- panels, the first moderated by Institute Research ability. Patrick Jones, Executive Director of Director Alexander Tabarrok and the second the International Bridge, Tunnel and Turnpike by the book’s editor, Gabriel Roth. Association, warned of the enormous gap be- Tabarrok started the discussion with a quick tween expected revenue for roads and projected overview of some of the current problems expenditures required to keep up with modern plaguing the road system, the 2.3 billion gallons traffic. squandered in traffic every year, the billions of Daniel Klein, Professor of Economics at hours wasted by American peak travelers annu- George Mason University, finished up the first ally. Roth identified the overarching problem as panel discussion with a fascinating account of being that of government management, which the forgotten legacy of private road construc- he deemed unresponsive to human needs, tion in the United States, reflecting on the unsuccessful at dealing with congestion, and approximately 3,000 roads—40,000 miles in restrictive of the freedom of mobility. He ex- (continued on page 7) The INDEPENDENT 7

Independent Policy Forum: Privatizing Roads (continued from page 6) toll roads—built by the private sector in the 19th century. Klein gave examples of private enterprise successfully connecting networks of roads in the 1800s, while attributing many of the problems of the era to unnecessary regulations imposed by government. He stressed the basic reality that the government, unlike the market, fails to match supply with demand, all while erecting bureaucratic barriers that deter private investment. The second panel explored the prospects of government-business partnerships. D.J. Grib- bin, Division Director of Macquarie Holdings, outlined the economic incentives in play for private sector management of highways, giving the Gabriel Roth, author of Street Smart, addresses the Washington, D.C. Independent Policy Forum. example of road security—which businesses, more than government, have every reason to the approximately $132 billion spent yearly ensure lest they lose their investments—and on American roads, and advanced the case for urged the audience to consider the possibility congestion pricing, as opposed to a tax system of revenue sharing. James Ray, Chief Counsel divorced from road use. Ike Brannon, Principal of the Federal Highway Administration, spoke Economic Advisor to Senator Orrin Hatch, said of the troubling rate at which traffic growth that today’s political realities require giving is outpacing road production, the urgent need consideration to new ways of funding road to change financing and management, and maintenance, including tolls, and dealing with estimates that the Highway Trust Fund will be the relevant deficits. insolvent by 2011. To reverse the unsettling Each panel concluded with an engaging trend, he recommended harnessing the energy question-and-answer session delving further of the private sector and tearing down ob- into all of these issues. stacles to private investment. Thomas Downs, A transcript is available at: www.independent. President of the Eno Foundation, addressed org/events/transcript.asp?eventID=121.•

New Book: Electric Choices (continued from page 3) ized, restructuring must proceed with greater recommendations in Electric Choices will help attention paid to incentives, consumer prefer- us to finish the revolution.” Completing that ences, and system-wide flexibility. Pat Wood task would ensure a bright future for electric III, former Chairman of the Federal Energy power and its users. Commission, writes in the foreword to the To purchase Electric Choices, see www.inde- book, “The superb and very timely analysis and pendent.org/store.•

The Independent Review: The Condition of Women (continued from page 5) male heirs. If widowed, a wife loses access to pro-women bill that sought to strengthen the her husband’s land, and must therefore spend law against the practice of honor killing,” Co- even more hours each day fetching water. hen writes. Although Turkey has passed a law Shockingly, “honor” killings, committed by imposing life sentences on those convicted of relatives for “shame” brought on a family, claim honor killings, a survey shows that almost 40% the lives of thousands of women each year, of respondents supported the practice. mainly in predominantly Islamic countries. The overall picture of women in developing “In 2005, the Pakistani government rejected a (continued on page 8) New Publications & Events: To Order Anytime: www.independent.org 1-800-927-8733 8 The INDEPENDENT

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PERMIT #2443 PERMIT women in developed countries. “Sweeping legal COLUMBUS, OH NON-PROFIT ORG NON-PROFIT reforms have opened many doors for women in Western countries, but women have not always taken full advantage of these reforms,” Cohen writes. “As in developing countries, customary law may still prevail over the formal law. It is up to both men and women to challenge the traditional norms to bring about a genuine change in women’s condition.” See www.independent.org/publications/tir/ article.asp?issueID=47&articleID=602.• Subscribe Free! The Light house Stay abreast of the latest social and eco nom ic issues in the weekly email news let ter of The In de pen dent Institute. • Insightful analysis and commentary • New publications • Upcoming events • Current media programs • Special announcements Subscribe today by sending an email to [email protected] 100 Swan Way 100 Swan California 94621-1428 Oakland,