The Wall Street Journal
May 14, 2002
A Toast to Liberty
By CLAUDIA ROSETT
http://online.wsj.com/article/0,,SB10213333061904360.djm,00.html
WASHINGTON -- Rarely does one get to a black-tie dinner more festive, inspiring and -- yes -- humorous than the libertarian Cato Institute's 25th anniversary gala, held here last Thursday. That might sound odd, because there was a sad note to the occasion, at which Cato inaugurated a major new award: the Milton Friedman Prize for Advancing Liberty. The first winner, development economist Lord Peter Bauer, planned to travel from England for the ceremony. He never made it. On May 2, a week before the festivities, he died, at the age of 86.
But the upbeat mood was a fitting tribute to the sprightly professor from the London School of Economics, who made it his life's work to promote ideas basic to the pursuit of happiness. Lord Bauer was one of the past century's great champions of human dignity and freedom, arguing that this was the way to wealth -- especially for the poorest people of the developing world. He argued for trade, not aid. He insisted that the real answer to poverty lies not in subsidies or state planning, but in giving people the freedom to choose how to spend their own energy and resources. He looked at the evidence and made the case that population growth could be an asset, not a liability.
For such ideas, Cato honored Lord Bauer with the Friedman Prize, which is to be given out every two years, and includes an award of $500,000. Conceptually, it is a prize that could become even more important than the Nobel, which honors achievements in such fields as economics, literature and peace. This is a prize for advancing the cause of liberty. As David Boaz, Cato's executive vice president, pointed out, "Liberty makes possible all the wonderful achievements celebrated in lots of other awards."
That's just part of the story, however. When Lord Bauer began speaking up, more than half a century ago, his ideas were hugely unpopular. He was ignored by many, derided by some. He stood by his principles. He went on amassing evidence, and over the decades, as results came rolling in -- with such successes as the free-market Asian tiger economies, and such failures as the centrally planned Soviet Union and its satellites -- Lord Bauer's views on development finally began to prevail.
In practice, the world is still a messy place, with far to go. But in principle, Lord Bauer and his free-market cohorts set an agenda that today provides at least a fighting chance for genuine global prosperity and peace. Lord Bauer not only bequeathed us much wisdom. He also set a moving example of the power of moral courage.