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The Centre for Independent Studies Vol. 20 No. 1, JuLY 2009 - June 2010 ANN U A L R E VI E W tHE CENTRE FOR INDEPENDENT STUDIES July 2009 – June 2010

The Centre for Independent Studies (CIS) is Australasia’s leading public policy research institute or think tank. Founded in 1976 by Greg Lindsay, the Centre’s major concern is with the principles and institutions underlying a free and open society, with a particular focus on and New Zealand.

Our goals

• An economy based on free markets • Democratic government under the rule of law • An autonomous and free civil society

Activities

• Research • Publishing • Lectures and seminars • Liberty & Society student program

Funding and independence

CIS is funded by private sector donations–from individuals, companies, and charitable trusts–as well as subscriptions and book sales.

Independent in our name means: • We are politically non-partisan. • Research is not directed by our supporters. Cover image ©[email protected] this position. position. this of extension ‘logical’ the represents proposed been has as taxation punitive of way by industry mining the of 40% network, broadband was nationalising needed. Effectively local a or system care health US the over be it whether control, government more that and work, don’t markets free that proved crisis the that concluded quickly Manne, ubiquitous the including liberty, economic of Opponents fundamentalism.’ ‘market so-called against unleashed crisis financial global the that hostility intellectual of wave that goes by the straw-man name of just in ‘neo-liberalism,’ that time to on ride the attack an launched Rudd Kevin In leader the lead up then opposition to the 2007 election, country. the for forward way best the as market the of superiority economic and moral the challenged Australian affairs of observer serious no times recent until up good improvement, for room the always is there escaped While have professor. of to quality seems prosperity freedom, and life, economic of scales various of top international the at is and the economy now OECD is strongest Australia that fact The success.’ of economic example that contemporary and important most Australia ‘the is in Japan failed had reform economic that last the book during time 1992 the In issues. to policy economic various on years 20 time from pronouncing from FROM FROM Shutdown T , which Manne co-edited, he declared declared he co-edited, Manne which , HE EXECU HE has not stopped him him stopped not has competence of lack This whatsoever.’ economics in competence no having ‘to Manne admitted Robert in Australia, to Conservatism book introduction 1982 the the In T IVE DIREC IVE The New New The

economic liberty there is today. today. is there liberty to economic risk greatest the is market, free the against case the of overstatement ideological by provoked governments, by action Misguided again. once for fought be must that But in the end, it of is freedoms market basic the retention Australia. from learned the be can lessons worthwhile for many front, this On setting improved. be can market institutional the of operation the and in countries, inadequate been some have may regulation that is times recent of history economic the of view balanced more A an on failure scale. epic government of witnessing Spain) are and we Greece Europe, Ireland, Italy, (Portugal, the PIIGS In course. 100-year their run have to appear often the which states, by has welfare provided European the is of belief collapse this of contemporary such proof More that disaster. us to led teaches government, history of believe but benevolence and may omnipotence dreamers the in Utopian devised. yet system economic alternative any than better work they setting, with business institutional on right messy the given But, a downs. and ups heaven periodic nature create by are will Markets and argued earth. perfect never are have markets liberals that that is error second The securities ‘mixed’ in and markets. regulated played heavily the as enterprises, as banks least at much failed central Governments crisis. the and government-owned precipitating regimes, state that like regulatory role the ignore they institutions that is error first The twofold. are make Rudd and Manne that mistakes The T OR CONSILIUM

Consilium: A Decade of Ideas, Inspiration and Independent Thinking

The Centre for Independent Studies celebrated the tenth anniversary of its flagship event, Consilium, in 2009. This elite gathering, featuring some of the world’s leading thinkers, was once again held amidst the lush greens of the Hyatt Regency Coolum’s championship golf course.

The standout session was Educating Coltheart, took the floor with the Disadvantaged, coordinated Professor Stephen Crain from the by CIS Research Fellow Jennifer Macquarie Centre for Cognitive Buckingham. Principals John Science, Professor Caroline Rae Fleming and Jean Illingworth from the Prince of Wales Medical provided first-hand accounts Institute, and Professor Robert of school life in disadvantaged Shepherd, Director of the Bionic Ear communities, giving a clear message Institute, for a fascinating discussion that education and discipline should about cutting edge developments be managed to fit the children in in medical bionics and neuro- question, not the other way around. engineering. With Australia at the Mr Fleming heads the Berwick forefront of cochlear and cognitive campus of Haileybury College, R&D, delegates listened spellbound Australia’s largest independent as the speakers offered rare school, and Ms Illingworth, named insights into new and possible future Queensland Senior Australian of treatment for epilepsy, brain trauma, the Year for her work in education, learning disorders, and the like. is CEO of Djarragun College in Far North Queensland. Both have had With global terrorism so prevalent spectacular results in improving in the new millennium, the education standards and experiences Consilium session on Pakistan: for children from lower socio- Crucible of Terror was a timely, economic and remote communities. if complex, discussion of the Professor Chris Goddard, Director of issues at play in this increasingly the National Research Centre for the unstable region. CIS Visiting Fellow Prevention of Child Abuse at Monash Dr Tanveer Ahmed shared his University, and Dr Rob Simons, head thoughts on the volatile situation of Research and Evaluation at The as did Pramit Pal Chaudhuri, Smith Family, joined the panel for a Senior Editor of the Hindustan broad discussion on raising scores Times; Dr Ashutosh Misra, Griffith and standards for under-privileged Asia Institute Research Fellow; children. CIS foreign policy expert Dr John Lee; and Dr Ayesha Siddiqa, an In The Brains behind Neuroscience independent security analyst and in Australia, the ‘superstar of military scholar from Pakistan. The neuroscience,’ Professor Max limited time frame made an in-depth exploration of the issues difficult, Law at Queensland University; and graphically illustrated the flaws but the session did provide the Dr Paul Kerin, Professorial Fellow in environmental data frequently opportunity for a variety of points from the Melbourne Business cited by scientists. of view to be aired about cause and School; Dr Don Brash, head of Henry Ergas, former Chairman effect and of Western foreign policy. New Zealand’s 2025 Taskforce; of Concept Economics, and The Cassandra Wilkinson, pro- Hon. Craig Emerson MP, Minister With the global economic crisis in capitalist writer; and CIS Research for Small Business, Independent full force during the middle of this Fellow Dr Oliver Hartwich. Contractors and the Service year, it was prudent for Consilium Economy, joined the conversation to feature not one but two sessions The final session of the challenging about replacing fear with optimism, on economics. Tackling the Crisis 2009 Consilium program was What and humanity’s critical need for focused on possible policy solutions Happened to the Idea of Progress?. renewed growth and innovation in and, of course, a discussion about Once a firmly entrenched Western order to address global challenges. stimulus packages. Dr Jerry Jordan, ideal, thanks to the Enlightenment former President of the Reserve period, this session looked at why Bank of Cleveland, was joined by the notion of progress has become ’s Economics Editor pilloried and demonised. Dr Austin Michael Stutchbury, CIS Research Williams, author of The Enemies of Fellow Dr Stephen Kirchner, Progress: Dangers of Sustainability, and Professor Tony Makin from spoke of his enmity towards the Griffith Business School. environmental zealots who seek to Tending towards a more ideological obstruct the progress of mankind direction, Is This the End of under the guise of sustainability and Capitalism? was a question soundly public good. Dr Patrick Michaels, answered in the negative by Professor climatologist at the University of Suri Ratnapala, Professor of Public Virginia, spoke on a similar theme, EVENT highlights highlights: june – december 2009

Impressions of Baniyala: A Remote Indigenous Community with a Future CIS has been at the forefront in challenging the tired and ineffective attitudes and policies that have weighed down Australia’s Aboriginal community for decades. On 8 July 2009, Senior Fellow Helen Hughes and Policy Analyst Sara Hudson joined with dedicated Rotarian Andy Buttfield to discuss the work that CIS and Rotary have undertaken in the remote homeland settlement of Baniyala.

Big Ideas Forum 2009: Enemies of Progress?

In a scathing indictment against sustainability zealots, Dr Austin Williams, Director of The Future Cities Project in London, and Dr Patrick Michaels, US climatologist, made the argument that environmentalism has become a new and dogmatic religion, endangering the Enlightenment ideal of human progress. This event was hosted by senior CIS economist Dr Oliver Marc Hartwich on 10 August 2009 at the Macquarie Group auditorium in ’s CBD.

Stern Hu and Stern China: Why Beijing did it and what it means for Australian-Chinese political relations CIS foreign policy expert Dr John Lee was joined on 25 August 2009 by The Australian’s editor-at-large, Paul Kelly, for a frank discussion about China’s bully-boy tactics with detained Australian businessman Stern Hu.

The Accidental Guerrilla

World-renowned counter-insurgency expert Dr David Kilcullen joined CIS guests for lunch on 4 September 2009 to discuss the situation in Afghanistan and the far-reaching consequences of hasty policy decisions.

David was one of the key architects of the West’s military strategy in Iraq; in an interview with CIS foreign policy expert Dr John Lee, he discussed the complex global challenge of modern terrorism.

Has the 21st Century Mind Become a Risky Business?

CIS was pleased to host eminent UK brain researcher Baroness Susan Greenfield CBE for lunch on 10 September 2009. The Baroness explained her theory that social networking sites are damaging to young minds, and that frequent use of onscreen technology encourages greater levels of risk- taking due to less human interaction. The Baroness, who is Professor of Pharmacology at Oxford University and Director of the Royal Institution of Great Britain, gave CIS guests an excellent overview of how the brain works and how it is dramatically affected by external stimuli.

EVENT highlights

Why People with Flat Screens TVs Should Stop Whinging about Capitalism CIS was delighted to take part in used humour, history and biology the inaugural Festival of Dangerous to demonstrate why capitalism and Ideas, presented by the Sydney free markets are responsible for Opera House over the October the huge improvements in world long weekend. In a sharp rebuke living standards in the past century. to soy-latte socialists everywhere, Wilkinson took a different approach senior CIS economist Dr Oliver in defence of capitalism, and was Marc Hartwich and author of Don’t provocative in her use of early Panic! Why Nearly Everything is punk rock bands as examples of Better than You Think, Cassandra capitalism in action. One guest was Wilkinson, put paid to the idea so convinced by her arguments that capitalism is a wicked system that he used his capitalist-product designed only to benefit the rich. With iPhone to download a song from Counterpoint co-host Paul Comrie- The Saints for the audience! Thomson facilitating, Dr Hartwich

(Note: Those not present at this entertaining session may want to google ‘monkey capitalists’ for a better understanding of the principles of free trade in the wild …)

Against Prohibition: An Argument for Legalising Drugs In a bold move, CIS held an event decriminalising illegal substances on 8 October 2009 to discuss would result in a huge reduction the benefits and drawbacks of of drug-related crimes. CIS is legalising drugs in Australia. undecided in its position on the Dr Norm Stamper, former Seattle matter but wholeheartedly supports chief of police, spoke about open and tolerant discussion on reducing the number of drug addicts this issue, which profoundly affects by providing caring and respectful the lives of so many people. medical assistance, and how

After the Wall: 20 Years On

On the twentieth anniversary of Dr Oliver Mac Hartwich; one of the most important events Co-Director of the European Law in modern history, CIS hosted a Centre at the University of NSW seminar to commemorate the fall and communism expert, Professor of the Berlin Wall. Guests gathered Martin Krygier; former ABC on 9 November 2009 to listen to European correspondent Dr Lee firsthand accounts and geopolitical Duffield; and CIS foreign policy analysis from CIS Research Fellow Research Fellow Dr John Lee.

CIS Video Footage

These events are available for viewing at www.cis.org.au. highlights: january – june 2010

Meet the Researchers Cultural Cringe: Are What If? In January, CIS launched its Australians the Plebeians Former NSW Premier The Hon. Meet the Researchers program, of the West? Nick Greiner headlined speakers with the inaugural event featuring at the launch of new policy book This sell-out event featured German departing Policy Analyst Elise What If? on 29 April 2010. Edited sociologist Jens Schroeder Parham. In her swansong for the by Dr Peta Seaton, the book discussing his theory that Australians CIS, Elise discussed her research asks policy questions heretofore are not the poor cultural cousins into the government’s response considered taboo: What if we of Europe or, indeed, anywhere. to the National Human Rights allowed schools to make profits? It has been conjectured that Consultation in Behind the Moral What if we abolished the states? Australia, whilst wealthy in terms Curtain: The Politics of a Charter What if we had nuclear energy? of bonhomie, beaches and beer, is of Rights. In March, Policy Analyst artistically poverty stricken because Luke Malpass, from the Centre’s The controversial book considers we lacka cultural elite. Jens offered New Zealand policy unit, talked these and many other questions a robust rebuttal to that argument, about proportional representation, and features essays by outspoken backed up by Dr Oliver Hartwich, Research Fellow Dr Stephen media bosses, former politicians, fellow German and CIS economist, Kirchner discussed the perils of policy wonks, and idea enthusiasts. and Miranda Devine, Sydney big government in April, and in CIS research fellows Dr Jeremy Morning Herald columnist. This May Research Fellow Dr Jeremy Sammut, Dr Oliver Hartwich, entertaining and amusing forum is Sammut investigated Australia’s and Jennifer Buckingham have available at www.cis.org.au in the child protection crisis. contributed chapters to the book. audio and video section. For more details or to purchase a copy of What If?, please visit www.connorcourt.com. SOCIAL FOUNDATIONS

The Social Foundations Program has continued to draw attention to the destructive social and personal consequences of welfare dependence and critique the growth of big government by advocating a choice-based approach in key social policy areas.

Welfare and Family “Australia is in the middle of an unusual, In June 2009, the CIS broke new In October, What’s next for Welfare- unrecognised and ground and published its first to-work? by CIS Policy Analyst unintended experiment report on the tragic area of child Jessica Brown analysed changes that may give us protection. In Fatally Flawed: The to the number of people dependent insight into the Child Protection Crisis in Australia, on welfare since the Howard connections between CIS Research Fellow Dr Jeremy government’s 2006 welfare-to-work rises and falls in Sammut argued that child protection policies were enacted. She argued our birth rate and authorities have repeatedly failed that policymakers should draw changing economic to adequately investigate reports of lessons from both the successes conditions. How that child abuse and to remove children and failures of past welfare reforms experiment turns out in danger because of a range of to ensure that any short-term rise in will have crucial systemic and ideological factors that unemployment is not the catalyst for economic and social continue to impede effective child an explosion in long-term welfare implications for our protection throughout Australia. An dependence. The Australian ran a future.” editorial in The Australian praised front-page story announcing the Barry Maley, Unleashed, Jeremy’s ‘in-depth’ work and the release of this report, as well as 15 August 2009 quality of the Centre’s research and an editorial that highlighted the contribution to policy debates. importance of the report’s conclusions. On the same day, the Sydney In September 2009, CIS Senior Morning Herald ran a major story Fellow Barry Maley authored Family discussing the findings of this report. on the Edge: Stability and Fertility in Prosperity and Recession in which In May 2010, Defeating Dependency: he argued that the advent of the Moving Disability Support Pensioners current recession has the potential into Jobs by Jessica Brown argued to reverse the increase in the birth that the focus of reform efforts for rate experienced in recent times by the Disability Support Pension (DSP) removing confidence in the economic should be on encouraging some of future and by stalling or reducing the 750,000 existing disability support government support for dependent pensioners back into work. children. He argued that unless family law and policies are changed, During the year, Jessica appeared on family stability and a buoyant birth Channel 7’s highly rated TV current rate will be at risk with long-term affairs program Today Tonight to implications in light of the ageing of discuss how welfare could be made the population. more conditional. She was also a panellist on the ABC’s Q&A program. Education Health and Ageing Governance, political In July, CIS Research Fellow The main focus of the Health and freedom, and civil society Jennifer Buckingham’s paper Ageing Program this year has been In July 2009, CIS Research Fellow In Defence of Non-Government a trilogy of papers on the ‘hospital Andrew Norton published an Schools reinforced the role of non- crisis.’ Issue Analysis paper Diminishing government schools in society and Democracy: The Threat Posed made the case for their continued In July, CIS Research Fellow by Political Expenditure Laws on public funding. She also edited Dr Jeremy Sammut’s monograph existing and proposed laws that Educating the Disadvantaged, an Why Public Hospitals are threaten to pull any organisation edited collection of four speeches Overcrowded: Ten Points for Policy– commenting on election candidates made at the education session makers extended the argument or political parties into the donations of Consilium 2009, including her for hospital vouchers to solve the disclosure system. In theory, much own. national bed shortage and the of Australian civil society could be resulting problems in public hospital caught by the legislation. These Marking 10 years since she joined emergency departments. Jeremy was laws risk exposing minor political CIS, Jennifer published a collection interviewed on ABC 2’s Breakfast activists to criminal prosecution for of opinion pieces in the book and on Sky News’ Agenda. their fundraising efforts, deterring Schools of Thought in July. donors whose names would be In November, the Centre published made public, and generating large Dr Jeremy Sammut’s The Curate’s Higher and vocational amounts of costly and complex Egg: A Response and Alternative to compliance work. education the Bennett Report to coincide with the yearly meeting of COAG where From 2012, Australia’s public In January 2010, Elise Parham the reform of the National Health universities will be funded published Behind the Moral and Hospital Reform Commission according to how many students Curtain: The Politics of a Charter (NHHRC) was up for discussion. they enrol rather than according to of Rights, which argued that a Jeremy’s paper argued that the agreements with the government. federal charter of rights would be NHHRC blueprint for health reform is For many years, CIS Research used by special interest groups as a flawed exercise in central planning, Fellow Andrew Norton has been a powerful political tool and would and proposed an alternative national calling for this policy change. He hinder democracy. It is pleasing hospital and health voucher scheme contributed a chapter showing the to note that the Rudd government incorporating the key market-based advantages of market over central has recently announced that it will principles of patient choice and allocation of student places to not be proceeding with a proposed provider competition. Competition in the Training Market, charter of rights. published by the National Centre for Vocational Education Research (NCVER).

Andrew gave presentations for the Centre for the Study of Higher Education at the University of Melbourne, the TAFE Directors Association, and the Centre.

“Rationing of services by waiting based on relative need is an unavoidable feature of all government-run, taxpayer-funded health systems. But what Medicare has produced is an irrational and immoral rationing in the form of an inverse care law.” Jeremy Sammut, The Australian, 22 March 2010 ECONOMICS

The Centre’s economics researchers have been in high demand since last year for public comment on issues ranging from fiscal stimulus packages to the car industry and foreign investment. Throughout the global financial crisis, CIS has continued to provide a free-market perspective that would have otherwise been missed.

In July 2009, CIS Senior Fellow Dr argued that “The RBA’s low public Stephen Kirchner profile relative to Robert Carling and CIS Research taxation of capital gains raises the very noisy fiscal Fellow Dr Stephen Kirchner little revenue but incurs significant stimulus efforts of released a Policy Monograph efficiency losses in the Policy politicians is skewing called Fiscal Rules for Limited Monograph Reforming Capital perceptions of the Government: Reforming Australia’s Gains Tax: The Myths and relative importance Fiscal Responsibility Legislation Reality Behind Australia’s Most of these two arms recommending an overhaul of the Misunderstood Tax. This paper of macro policy in Charter of Budget Honesty. This proposed that the review of supporting economic paper proposed a new federal the tax system currently being activity. To correct Fiscal Responsibility Act to replace undertaken by Treasury Secretary these perceptions, the the ’s Charter Ken Henry should work towards RBA’s senior officers of Budget Honesty. alleviating the high tax burden should follow overseas on capital through extending the practice and front In July 2009, CIS Research Fellow current concessional treatment of a media conference John Humphreys and CIS Policy capital gains tax (CGT). following each monthly Analyst Luke Malpass released board meeting to Emissions Tax: The Least Worst John Humphreys suggested in field questions from Option, which outlined why an Ending the Churn: A Tax-welfare accredited media.” emissions tax linked with other tax Swap that even if we doubled the Stephen Kirchner, The cuts would be a big improvement GST to 20%, it would be unlikely Australian Financial over the proposed emissions trading to raise enough money to pay for Review, 24 July 2009 system. our future Commonwealth health bill. He proposed that by removing this middle-class welfare in exchange for income tax cuts, churn could Robert Carling highlighted the fact The Henry Review and the be reduced by as much as $80 billion that America’s massive fiscal deficit government’s response failed to per year. The report proposed has the potential to spur a second deliver on income tax reform and a mandatory minimum level of crisis in his Issue Analysis paper the CIS released a paper The Henry health insurance and schooling, Fiscal Shock and Awe in the United Review—An Initial Response and but otherwise allows middle- and States, in which he argued that also held a tax forum to discuss high-income earners to leave the timely debt reduction is essential if future directions. welfare system. a crisis that would send worldwide shockwaves, including to Australia, In May 2010, Dr Oliver Hartwich CIS Research Fellow Dr Oliver is to be averted. proposed a slightly tongue-in-check Hartwich released an Occasional idea—instead of an Emissions Paper titled Neoliberalism: The Robert Carling also released The Trading Scheme, how about a Red Origins of a Political Swearword, Unfinished Business of Australian Tape Trading Scheme? In Towards which has received media attention Income Tax Reform in March 2010, a Red Tape Trading Scheme: across the globe. Oliver also co- arguing that any tax reform will be Treating Excessive Bureaucracy authored a paper with Jennifer hollow without significant personal as Just Another Kind of Pollution, Buckingham, On the Right Track: income tax reform. The reform he argued that government should Why NSW Needs Business Class agenda for personal income tax measure the regulatory costs on the Rail, making a compelling case for should be to cut marginal tax rates; Australian economy and consider a business class carriages on longer implement automatic indexation of ‘cap and trade’ scheme to manage train journeys. It is amazing that it thresholds for inflation; scale back red tape. took the CIS to bring up the issue of the myriad selective tax breaks; hot coffee and laptop connections and simplify. that could be implemented without requiring additional public funding.

“It is easy to agree with the Henry report that the current array of state taxes leaves much to be desired. But in finding a replacement it is important not to throw the baby (accountability and state fiscal autonomy) out with the bathwater (economic inefficiency of present state taxes) if Australian federalism is not to be further undermined.” Robert Carling, Online Opinion, 13 May 2010 INDIGENOUS AFFAIRS RESEARCH PROGRAM

The program’s research, publications, participation in discussions, and media articles have continued to have an impact on the direction and content of the Indigenous policy debate—moving it towards greater recognition of the importance of education, employment, private property rights, and accountability.

In December 2009, CIS Policy independent researcher Mark Analyst Sara Hudson released her Hughes released in April 2010. In paper on Indigenous health Closing Indigenous Education 2010, they the Accountability Gap: The First argued that without changes to Step towards Better Indigenous inept education policies, 40% of Health, which argued that closing Indigenous students will continue the Indigenous health gap requires to fail to meet national minimum not just extra funding but more standards. Depressingly, there has accountability. Complex funding been little change in education arrangements lack transparency, policies, and the 2009 NAPLAN and untargeted spending wastes results show that the bottom resources. Better reporting is needed 150 schools in Australia are nearly for improved patient outcomes all Indigenous schools. This paper and services. The story was run as received significant media attention, ‘breaking news’ in all of Australia’s with The Australian running a main newspapers and websites. front-page story.

“The majority of The government’s ill fated Strategic Helen Hughes and Mark Hughes Indigenous Australians Indigenous Housing and Infra– also released Employment, do not need government structure Program (SIHIP) has lent Unemployment and Labour Force handouts but they weight to Sara Hudson’s argument Participation: Facts for Evidence do deserve some for private homeownership for Based Policies in March 2010, recognition. They Indigenous communities (outlined which highlighted that Indigenous are the forgotten in her paper From Rhetoric to unemployment is stuck at 15% Indigenous Reality: Can 99-year Leases Lead while unemployment in the rest Australians.” to Homeownership for Indigenous of Australia is back to 5.3%. Sara Hudson, Communities?) and more and The Sydney Morning more people are beginning to see The problem is not a lack of jobs but Herald, 12 May 2010 the merit in having 99-year leases government policies that have made for communities. many Aborigines unemployable. Transition from welfare to work Indigenous education has also will never be achieved unless the been the subject of more research, repackaging of welfare, which has with a follow-up paper by CIS allowed Aborigines to avoid mutual Senior Fellow Helen Hughes and obligation rules, ends. FOREIGN POLICY & INTERNATIONAL RELATIONS

The Centre’s foreign policy work has built on the momentum developed over the last few years. The aim is not to simply comment on current events but to take a forward-looking approach in anticipating and explaining likely developments that are taking place in our region. Foreign policy research remains prolific and continues to enjoy considerable impact and exposure—both in terms of exerting direct influence on policymakers as well as a prominent presence in Australian and global media.

Beginning our Foreign Policy and strategists in . Beyond been published in major journals and Analysis series was the report token statements acknowledging its magazines such as Time, Forbes, Why America will Lead the rise, India remains our great strategic Newsweek, Business Week, Der ‘Asian Century’ released in blind spot. Speigel, Foreign Policy, and World July 2009. CIS Research Fellow Politics Review. Radio interviews Dr John Lee showed that even In May 2010, CIS released The have been aired on international though the beginning of the end of Fantasy of Taming China’s Rise, in networks such as the BBC and Voice America’s strategic primacy in Asia which Dr John Lee argued that the of America as well as in all major is commonly predicted, the decline belief that China will be content to Australian radio networks. Television of US influence in Asia will occur far rise as a ‘responsible stakeholder’ in interviews include international slower—if at all—than it is commonly a US-led regional and global order is channels such as Fox News, BBC believed. America is the preferred out of date. Instead, a new framework World News, Al Jazeera as well as choice as leader of the informal needs to explicitly recognise that Australian channels such as ABC, hierarchical security system in China is both an ‘economic partner’ Seven, Nine and Sky News. Asia—and will become even more so and a ‘strategic competitor’ to America as new powers rise. and its allies such as Australia. “China has big economic Australia must recognise the growing Well over 50 foreign policy opinion plans and ambitions in confidence, power and influence of pieces and points of view have been Africa that go beyond India if we are to remain a relevant published and reported in major global oil and minerals. middle power in the Asia-Pacific newspapers such as the New York While much of the region. Times and Boston Globe (USA); world still views International Herald Tribune, The Africa as a basket-case In The Importance of India: Restoring Times, and The Guardian (UK); the continent, Beijing is Sight to Australia’s Strategic Blind Hindustan Times and the Times of thinking ahead and busy Spot, released in November 2009, India (India), as well as all major establishing a foothold Dr John Lee discussed Canberra’s Asian newspapers, including the in Africa’s potentially strategic blind spot in relation to South China Morning Post, China large consumer markets.” India. The future credentials of India Post, and the Oriental Morning Post, John Lee, Time magazine, are consistently ignored or given in addition to all major Australian 9 November 2009 relatively little attention by officials newspapers. Our opinions have also NEW ZEALAND POLICY UNIT

The highlight for the New Zealand Policy Unit in 2009 was the very successful Flight of the Kiwi event hosted by the CIS in an attempt to discover what may entice expat New Zealanders to embark on a return trip. We wondered whether the the flight of the Kiwi forever be a one-way trip from New Zealand to Australia?

“Apart from a few CIS Policy Analyst Luke Malpass properly. This paper was covered possible random was joined on the panel by former extensively in the media, discussed changes in the tax All Blacks’ captain and Fairfax by the Minister Stephen Joyce, and system and references CEO David Kirk MBE, fellow Kiwi commented on by Prime Minister to economic growth, and business broadcaster Andrew John Key. there is little to Patterson, and Dr Don Turkington inspire confidence from the NZ government’s Regulatory In March 2010, Luke Malpass and that the Key Responsibility taskforce to discuss CIS Research Fellow Dr Oliver government is clear how best to help New Zealand Hartwich tried to kick start New about its objectives achieve parity with Australian living Zealand’s democracy in Superseding or, more importantly, standards by 2025. MMP: Real Electoral Reform for how to achieve them. New Zealand where they argued If he doesn’t come This event generated significant that New Zealanders needed to his senses—and debate and discussion in New to seize the opportunity of the return to the reform Zealand. upcoming referendum on electoral track—soon, New reform and reinvent their system of Zealand risks missing In July 2009, Luke Malpass released government. They recommended opportunities for KiwiRail: Doomed to Fail, which that New Zealand should abolish its growth.” argued that under state ownership Mixed Member Proportional system Luke Malpass, KiwiRail will never return a profit, (MMP) and reform the structure of The Wall Street Journal, and even under private ownership it Parliament. 26 February 2010 will struggle unless roads are priced PUBLICATIONS

JUNE • Neoliberalism: The Genesis of a Political Swearword Oliver Marc Hartwich • Fatally Flawed: The Child Protection Crisis in Australia Jeremy Sammut • The Folly of Criminalising Cartels Jason Soon July • Schools of Thought: A Collection of Articles on Education Jennifer Buckingham • In Defence of Non-Government Schools Jennifer Buckingham • Fiscal Rules for Limited Government: Reforming Australia’s Fiscal Responsibility Legislation Robert Carling and Stephen Kirchner • Emissions Tax: The Least Worst Option John Humphreys and Luke Malpass • Why Public Hospitals Are Overcrowded: Ten Points for Policymakers Jeremy Sammut • Diminishing Democracy: The Threat Posed by Political Expenditure Laws Andrew Norton August • Why America Will Lead the ‘Asian Century’ John Lee September • KiwiRail: Doomed to Fail? Luke Malpass • Family on the Edge: Stability and Fertility in Prosperity and Recession Barry Maley October • Educating the Disadvantaged Jennifer Buckingham (ed) • Ending the Churn: A Tax Welfare Swap John Humphreys • The Past is the Future for Public Hospitals: An Insider’s Perspective on Hospital Administration John Graham • What’s Next for Welfare-to-Work? Jessica Brown • Fiscal Shock and Awe in the United States Robert Carling • Going First Class Oliver Marc Hartwich and Jennifer Buckingham november • US-India Strategic Cooperation John Lee • Reforming Capital Gains Tax Stephen Kirchner • Curate’s Egg: A Responsive and an Alternative to the Bennett Report Jeremy Sammut • Closing the Health Gap Sara Hudson December • 25th John Bonython Lecture P. J. O’Rourke January • Behind the Moral Curtain: The Politics of a Charter of Rights Elise Parham March • The Unfinished Business of Australian Income Tax Reform Robert Carling • Shooting the Messenger: The Ban on Short Selling Stephen Kirchner (ed) • Superseding MMP: Real Electoral Reform for New Zealand Luke Malpass and Oliver Marc Hartwich • Indigenous Employment, Unemployment and Labour Force Participation: Facts for Evidence Based Policies Helen Hughes and Mark Hughes April • Indigenous Education 2010 Helen Hughes and Mark Hughes • Defeating Dependency: Moving Disability Support Pensioners into Jobs Jessica Brown May • The Fantasy of Taming China John Lee • Towards a Red Tape Trading Scheme: Treating Excessive Bureaucracy as Just another Kind of Pollution Oliver Marc Hartwich MEDIA

CIS MEDIA MENTIONS JUNE 2009 – May2010

Online Mentions 31% Opinion Pieces 25%

Radio 16% Newspapers Mentions 23%

Television 5%

The Centre scored a total of 1,224 media mentions from June 2009–May 2010.

CIS researchers published 308 opinion pieces, and gave 196 radio interviews and 54 television interviews. The Centre was also featured in newspaper articles 285 times and blogged more than 400 times. LIBERTY & SOCIETY

L&S conference political

September 2009 May 2010 success for The conference opened with a Due to the Centre’s involvement l&s amumni dinner speech by Dr Tanveer in running the international Mont Ahmed, who is researching Pelerin Society meeting later this Congratulations to Kelly O’Dwyer, politics in Pakistan. The lecturers year, it was decided that only one who has attended both the for this conference were Professor L&S conference would be held in Introductory and Advanced L&S Greg Melleuish, School of 2010. On the first weekend of May, conferences, for her election to the History, University of Wollongong 30 young people from all over seat of Higgins in Victoria at the (Political History); Dr Jason Potts, Australia and New Zealand attended recent by-election. School of Economics, University the conference. As usual, the quality of Queensland (Economics); of the students was impressive, with Many other L&S alumni are working Dr Darryn Jensen, School of Law, all doing or having done double in the political arena. Michael University of Queensland (Law); degrees. Three have just started in Keenan is the federal Shadow and Dr Stephen Kirchner and economic consulting, a number are Minister for Justice and Customs; Dr Oliver Hartwich from CIS working part-time for federal and Scott Ryan is a Senator in the (GFC). state MPs, and others are tutoring Victoria; John Gardner is the at their university. Our successful Liberal Member for Morialta in the Attendees included students of format was used with four lecturers SA Parliament; Michael O’Brien mining, biotechnology, business, attending. New lecturers Professor is the Victorian Shadow Minister law, commerce, economics, political Nicholas Aroney took the law for Infrastructure; and Joshua science, and media degrees and session and Professor Warwick Frydenberg has been preselected those starting at Access Economics McKibbin talked about the for the blue-ribbon Liberal seat of and the Department of Treasury in Economics of Climate Change. Kooyong. In New Zealand, Simon Canberra and Western Australia. Dr Jeremy Shearmur, Dr Oliver Bridges is the National Party As usual, they were an intelligent Hartwich, and Dr Stephen Member for Tauranga. and engaged group who gained a Kirchner returned to lecture on lot from the conference. political philosophy and economics.

A fantastic conference that facilitated discussion of ideas that are severely under-represented at university – Adrian Dean

Truly one of the best weekends of my life … I revelled in the opportunity to spend all hours of the day discussing politics, economics and social justice issues – Holly Ransom FUNDRAISING

The CIS team has devoted itself to tackling the recent challenges facing many charitable organisations. In doing so, the Centre has augmented its multi-faceted fundraising strategy, focusing on raising funds both nationally and internationally and offering a wider range of giving options. The goal is to expand the Centre’s activities and ensure its longevity.

Cementing the future of our organisation is imperative if we are to continue promoting the core values at the heart of the Centre and strengthen our capacity as a truly independent voice—the key to contributing to public policy debates that seek to positively impact our way of life. Funds are received via:

• Individual and corporate membership subscriptions • Individual, corporate and charitable foundation donations • Workplace Giving program NEW! • Bequest program • Capital fund ‘CIS remains the master of its own destiny, and jealously guards its reputation for independence. It is thanks to the extraordinary network of human capital who support the CIS both intellectually Donationsand financially that lively, imaginative and scholarly workMemberships is continuing to have widespread influence on public affairs.’ TheThank CIS you witnessedfor your support. an increase The Centre’s individual members,

in donations received in the latter principally from Australia and

months of 2009, improving after New Zealand, comewww.cis.org.nz from a wide a year-on-year decrease in the range of backgroundswww.cis.org.au and include

January–June period. Funding many prominent members of the Professor Geoffrey de Q. Walker Q. de Geoffrey Professor

ABN: 15 001 495 012 495 001 15 ABN:

levels have steadiedAM Swan sincePeter Professor the media, politics, academia and the [email protected] Professor Judith Sloan Judith Professor

Fax: (+64 4) 499 5940 499 4) (+64 Fax:

beginning of 2010; however,Schwartz Steven it willProfessor business community. Peter Yates Peter

Ph: (+64 4) 499 5861 499 4) (+64 Ph: Professor Razeen Sally Sally Razeen Professor

New Zealand, 6145 Zealand, New Steven Wilson Steven

remain a tight year economicallyRatnapala Suri Professor

Lambton Quay, Wellington Wellington Quay, Lambton Lucy Turnbull Lucy

Professor R.R. Officer R.R. Professor

PO Box 5529, Box PO Dr Don Turkington Don Dr

as some major pledgesMinogue to currentKenneth Professor During the unfortunate economic

Steven Skala AO Skala Steven

New ZeAlANd New Professor Tony Makin Tony Professor

Geoff Ricketts Geoff

policy programs are nearingKukathas Chandran theirProfessor climate of the last 12–18 months,

Nicholas Moore Nicholas

Professor Wolfgang Kasper Wolfgang Professor [email protected]

end. McLean DonationsRobert are the lifeblood our membership program has Fax: (+61 2) 9439 7310 7310 9439 2) (+61 Fax: Professor Helen Hughes AO Hughes Helen Professor

John M. Green M. John

Ph: (+61 2) 9438 4377 9438 2) (+61 Ph: Professor Ian Harper Ian Professor

of our Grant workRoss and we therefore ask been increasingly important in St Leonards, NSW 1590 1590 NSW Leonards, St Professor David Emanuel David Professor

Dr Peter Farrell AM Farrell Peter Dr Mail: PO Box 92, 92, Box PO Mail:

all our donors for their continuedDavidson Sinclair Professor providing the Centre with a stable Level 4, 38 Oxley Street, St Leonards St Street, Oxley 38 4, Level Sir Rod Eddington Rod Sir

Professor Kenneth Clements Kenneth Professor

Dr Peter Dodd Peter Dr

Professor Lauchlan Chipman Lauchlan Professor

support during these trying times.* income base. AustrAliA

Chum Darvall Chum

Professor Geoffrey Brennan Geoffrey Professor

Michael Chaney AO AO Chaney Michael

Professor Jeff Bennett Jeff Professor

Robert Champion de Crespigny AC Crespigny de Champion Robert

Professor Ray Ball Ray Professor

Gordon Cairns Gordon

AcAdemic Advisory couNcil Advisory AcAdemic

Chris Roberts Roberts Chris

The Centre for Independent Studies Chairman Deputy

Greg Lindsay AO AO Lindsay Greg Executive Director Executive

Michael Darling Darling Michael Chairman

BoArd of directors of BoArd Thomas Jefferson

“the price of freedom is eternal vigilance”

Bequests The CenTre for IndependenT STudIeS IS AuSTrAlASIA’S leAdIng IndependenT publIC polICy reSeArCh InSTITuTe

‘The price of freedom is eternal vigilance’ Thomas Jefferson WANT TO KNOW MORE?

If you require any further information then please contact:

Di Kennedy Development Officer - Corporate (02) 9438 4377 [email protected],au Donations received throughout 2009–10 enabled CIS

staff, EmeritusPARTNER ORGANISATION Professor Helen Hughes and Policy For further information about Analyst SaraWorkplace Hudson, Giving, please visit to continue their research the Charities Aid Foundation into Indigenous(CAF) website: Affairs policy reform.

http://www.cafaustralia.org.au

38 Oxley Street St Leonards, NSW, 2065 Phone (02) 9438 4377 Fax (02) 9439 7310

www.cis.org.au

Bequests Capital Fund The CIS Bequest Program— Traditionally, the Centre has raised We would like to thank all our established in 2008—has and spent its budget each financial members, supporters and donors generated considerable interest year. Whilst this ensured an who have contributed to the as a means of supporting the absolute efficiency in the use of our Centre’s growing intellectual Centre beyond our current funding, it left us with few reserves. capacity. You have given us the membership and donations The Capital Fund was established strength and resources necessary structure. The Centre looks in 2006 as a five-year program to expand our activities, providing forward to hearingfrom members designed to address this issue. pragmatic solutions to public and friends who may be policy issues that affect our considering a bequest to CIS, To date, the Capital Fund has families and communities across either by a single gift of cash, passed the $4 million mark, and by the nation. property, shares or even a the end of 2010 the Centre looks percentage of their estate. By forward to reaching its target of Thank you. informing the Centre of your $5 million. Through conservative intent to leave a bequest, you investment, the fund has performed are helping to ensure the well and our core funds and longevity of an organisation that earnings are intact. is dedicated to strengthening the moral legitimacy of a free- market economy and a free society. Will this be your legacy?

For further information on memberships, donations workplace giving, bequests or the capital fund, please call the CIS on (02) 9438 4377 or go to www.cis.org.au.

*Donations over $2 are tax deductible. NEW CIS STAFF

Ryan Acosta has joined CIS as our Graphic Designer/Desktop Publisher. Prior to joining the CIS, he worked as the Desktop Publisher for Coates Hire Pty Ltd for a number of years as well as doing freelance graphic design work.

Alanna Elliott is Executive Assistant to Greg Lindsay and the Centre’s Events Assistant. She has a Bachelor of Communication Studies majoring in Television Production from the Auckland University of Technology. Before moving to Sydney in 2008, she was Head of Production on an after-school children’s television show in New Zealand. She also has a background in the performing arts.

Diana Kennedy is the Corporate Development Officer. She has a strong background in the corporate environment, having worked for many years in the finance industry and most recently as a Transformation Program Manager with the National Australia Bank. She has previously worked overseas for UBS Business Banking. Di has a Masters of Business Administration from the Open University, Milton Keynes, .

Dr Stephen Kirchner is now combining his interests in academia and research. Stephen divides his time between his role as a Senior Lecturer, School of Finance and Economics at the University of Technology (UTS), Sydney, and as Research Fellow in the Centre’s Economics Program.

Elise Parham was a Policy Analyst (2009) with the Social Foundations Program. Her research interests included the possibilities for legal protection of human rights and the ramifications of affirmative action programs. Elise has degrees in Law (Hons) and Economics from the Australian National University.

Jane Thackray is one of our Office Administrators. Jane has many years’ experience in administration. Prior to joining CIS, she worked as Company Secretary/Administration for a building company.

Hannah Treloar is our Public Affairs Manager. She has a BA majoring in Politics and American Studies from Flinders University in . Hannah’s previous experience is in politics as an Electorate Advisor for Senator Simon Birmingham and for The Hon. MP. CIS STAFF AND BOARD OF DIRECTORS

Board of Directors Honorary Auditors Distinguished Fellows Michael Darling (Chairman) Deloitte Touche Tohmatsu NSW Professor Ray Ball John Calvert-Jones AM Chris Roberts (Deputy Chairman) Honorary Solicitors Michael Chaney AO Greg Lindsay AO (Executive Director) Minter Ellison Lawyers Michael Darling Gordon Cairns David Darling James Beatty & Associates Robert Champion de Crespigny AC Dr Roderick Deane Alan Gibbs Michael Chaney AO Staff Ross Graham-Taylor Chum Darvall Greg Lindsay AO: Executive Director Professor R. M. Hartwell (1921–2009) Dr Peter Dodd Prescila Babalo: Accounts Manager Andrew Kaldor Sir Rod Eddington Meegan Cornforth: Events Manager C. R. Bert Kelly CMG (1912–1997) Dr Peter Farrell AM Alanna Elliott: Executive Assistant, Neville Kennard Ross Grant Events Assistant Barry Maley Emmalene Fick: Subscriptions Assistant Alan McGregor AO (1936–2005) John M. Green Jane Thackray & Sarah Jane Hall: Hugh Morgan AC Belinda Hutchinson AM Office Administration Dame Elisabeth Murdoch AC DBE Robert McLean Di Kennedy: Development Officer Maurice Newman AC Professor Ross Parish (1929–2001) Nicholas Moore – Corporate Ian Roach AO (1925–2003) AO Jenny Lindsay: Office Manager, Professor Peter Saunders Geoff Ricketts Student Program Coordinator Dr Ben Teh (1941–1998) Dr Don Turkington Bronwyn Nolan: Subscriptions Manager Lucy Turnbull Mangai Pitchai: Editor Editor Joanne Summergreene: Development Steven Wilson Hannah Treloar Officer – Foundations and Bequests Peter Yates Hannah Treloar: Public Affairs Manager Publisher Greg Lindsay Academic Advisory Council Research Staff Professor Ray Ball Dr Tanveer Ahmed: Visiting Fellow Designer Professor Jeff Bennett Jessica Brown: Policy Analyst Ryan Acosta Sally Woodward Professor Geoffrey Brennan Jennifer Buckingham: Research Fellow Professor Lauchlan Chipman Robert Carling: Senior Fellow June 2010 Dr Oliver Hartwich: Research Fellow Professor Kenneth Clements Print Post PP 244371/00006 Geoff Hogbin: Senior Fellow Professor Sinclair Davidson ABN 15 001 495 012 Sara Hudson: Policy Analyst Professor David Emanuel Professor Helen Hughes AO: Australia Professor Ian Harper Senior Fellow PO Box 92 St Leonards NSW Professor Helen Hughes AO Dr Stephen Kirchner: Research Fellow 1590 Australia Professor Wolfgang Kasper Dr John Lee: Research Fellow Ph: +61 2 9438 4377 Professor Chandran Kukathas Barry Maley: Senior Fellow Fax: +61 2 9439 7310 Professor Tony Makin Luke Malpass: Policy Analyst, Email: [email protected] www.cis.org.au Professor Kenneth Minogue New Zealand Policy Unit Andrew Norton: Research Fellow, Professor R. R. Officer New Zealand Editor of Policy magazine Professor Suri Ratnapala PO Box 5529 Lambton Quay Elise Parham: Policy Analyst Professor Razeen Sally Wellington 6040 Dr Jeremy Sammut: Research Fellow New Zealand Professor Steven Schwartz Professor Peter Saunders: Senior Fellow Ph: +64 499 5861 Professor Judith Sloan Gaurav Sodhi: Adjunct Scholar Fax: +64 499 5940 Professor Peter Swan AM Kirsten Storry: Visiting Fellow Email: [email protected] Professor Geoffrey de Q. Walker Susan Windybank: Visiting Fellow www.cis.org.nz We must make the building of a free society once more an intellectual adventure, a deed of courage. If we can regain that belief in the power of ideas, which was the mark of liberalism at its best, the battle is not lost.

— F. A. Hayek

The Centre for Independent Studies Level 4, 38 Oxley Street, St Leonards, NSW 2065 l PO Box 92, St Leonards NSW 1590 Tel: +61 2 9438 4377 l Fax: +61 2 9439 7310 l Email: [email protected] l www.cis.org.au