:THE LIGHTHOUSE
"Enlightening Ideas for Public Policy..."
Vol. 8, Issue 5; January 30, 2006

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IN THIS WEEK'S ISSUE:
1. THE CHE GUEVARA MYTH AND THE FUTURE OF LIBERTY -- New Book by Alvaro
Vargas Llosa
2. A Different Guevara Advocates Liberty for Costa Ricans
3. Hamas Victory Suggests That the U.S. Should Adopt a Lower Middle East
Profile
4. The State Lottery Scam

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Welcome to THE LIGHTHOUSE, the weekly e-mail newsletter of the Independent
Institute, the non-politicized public-policy research organization. Edited
by Carl P. Close, THE LIGHTHOUSE provides you with updates of the
Institute's current research, publications, events and media programs, plus
commentary on current affairs.

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THE CHE GUEVARA MYTH AND THE FUTURE OF LIBERTY -- New Book by Alvaro Vargas
Llosa

Nearly four decades after the death of Ernesto "Che" Guevara (1928-67), the
Latin American revolutionary's legend has grown worldwide, spreading from
the hard political left to masses of consumers who have made Che tee-shirts
a staple of the "radical chic" wardrobe.

In his new book THE CHE GUEVARA MYTH AND THE FUTURE OF LIBERTY, Independent
Institute Senior Fellow Alvaro Vargas Llosa (director, Center on Global
Prosperity) separates the myth from the reality, showing that Guevara's
"idealism" enabled him to rationalize not only bad economic policies and the
brutal prohibition of out-migration, but also the execution of hundreds of
political prisoners without trial. (Vargas Llosa quotes, to chilling effect,
interviews with former colleagues of Guevara supporting this claim.)

After debunking the Che Guevara myth, Vargas Llosa examines the failure of
Latin America's reforms of the 1990s. Finally, he calls for genuine
reformers to replace Latin America's long-lived statism with the
individualist elements of its tradition. For example, Juan Bautista Alberdi
of 19th century Argentina -- who helped depose a tyrant and introduced his
country to the ideas of constitutionalism, open trade, greater immigration,
and secure property rights -- helped bring his country decades of growing
prosperity. He opposed his country's war with neighboring Paraguay, and,
unlike Che Guevara, he never hurt a fly.

To purchase THE CHE GUEVARA MYTH AND THE FUTURE OF LIBERTY, by Alvaro Vargas
Llosa, see http://www.independent.org/store/book_detail.asp?bookID=61

LIBERTY FOR LATIN AMERICA: How to Undo Five-Hundred Years of State
Oppression, by Alvaro Vargas Llosa
http://www.independent.org/store/book_detail.asp?bookID=55

Center on Global Prosperity (Alvaro Vargas Llosa, director)
http://www.independent.org/research/cogp/

Spanish-language Blog:
El Independent: El Blog del Centro Para la Prosperidad Global de The
Independent Institute
http://independent.typepad.com/

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A DIFFERENT GUEVARA ADVOCATES LIBERTY FOR COSTA RICANS

Although not expected to win the presidency in Sunday's elections, Costa
Rica's Partido Movimiento Libertario (Libertarian Movement Party) is poised
to win 12 seats out of 57 in the country's legislature. Its presidential
candidate -- party co-founder Otto Guevara, who was elected to Congress in
1998 -- will easily win third place, beating out several older political
parties. Not bad for a pro-freedom political party founded only twelve years
ago.

The gains that Movimiento Libertario has so far enjoyed show three things,
according to Alvaro Vargas Llosa, director of the Independent Institute's
Center on Global Prosperity.

"First, it indicates that the classical liberal tradition has some potential
for making a connection with the populace, because of its critique of
established parties and traditional politicians -- a stand very much in
vogue in the developing world.... Second, the Costa Rica experience shows
principle is not necessarily a lost cause in politics." Finally, the eight
years of solid growth of Otto Guevara's Movimiento Libertario suggests that
"practical politics, can, in the right circumstances, become a catalyst for
cultural change."

See "A Libertarian Dream Story," by Alvaro Vargas Llosa (1/27/06)
http://www.independent.org/newsroom/article.asp?id=1659
SPANISH TRANSLATION:
"Un Sueno Libertario"
http://www.elindependent.org/articulos/article.asp?id=1659

LIBERTY FOR LATIN AMERICA: How to Undo Five-Hundred Years of State
Oppression, by Alvaro Vargas Llosa
http://www.independent.org/store/book_detail.asp?bookID=55

Center on Global Prosperity (Alvaro Vargas Llosa, director)
http://www.independent.org/research/cogp/

Spanish-language Blog:
El Independent: El Blog del Centro Para la Prosperidad Global de The
Independent Institute
http://independent.typepad.com/

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HAMAS VICTORY SUGGESTS THAT U.S. SHOULD ADOPT LOWER MIDDLE EAST PROFILE,
ELAND ARGUES

Last week's election of the militant Islamic group Hamas, over the secular
Fatah party, demonstrates the folly of unqualified pro-democracy rhetoric
that has emanated from Washington, D.C. in recent years. It also
demonstrates the downside of the U.S. government's attempt to buy public
support for Fatah: The pre-election exposure of the Bush administration's
recent aid to Fatah -- intended to help swing the election in favor of
Fatah -- contributed to Hamas's electoral victory, according to Ivan Eland,
director of the Independent Institute's Center on Peace & Liberty.

Although circumstances may pressure the leaders of Hamas and Israel to
become more conciliatory than their rhetoric has suggested, the region's
contentious waters will likely be very difficult for the U.S. to navigate.
Thus, Eland cautions U.S. leaders not to enter the fray.

"Stop coercing and threatening autocratic governments in order to promote
democracy, and take a lower profile in resolving the Israeli-Palestinian
dispute," Eland writes. "When the Israelis and Palestinians are truly ready
for genuine negotiations, which neither party is currently and may not be
for quite some time, the United States could act as a neutral mediator -- 
rather than a guarantor -- of a settlement. In the meantime, President Bush
should follow his natural instinct and lie low."

See "Political Earthquake in Palestine," by Ivan Eland (1/27/06)
http://www.independent.org/newsroom/article.asp?id=1660
SPANISH TRANSLATION:
"Terremoto político en Palestina"
http://www.elindependent.org/articulos/article.asp?id=1660

To purchase THE EMPIRE HAS NO CLOTHES: U.S. Foreign Policy Exposed, by Ivan
Eland, see
http://www.independent.org/store/book_detail.asp?bookID=54

To purchase PUTTING "DEFENSE" BACK IN U.S. DEFENSE POLICY, by Ivan Eland,
see
http://www.independent.org/store/book_detail.asp?bookID=19

Center on Peace & Liberty (Ivan Eland, director)
http://www.independent.org/research/copal/

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THE STATE LOTTERY SCAM

State lotteries made a comeback in the 1960s, with proponents claiming they
would resolve budget shortfalls, improve public education, and reduce
illegal gambling. Illinois adopted its lottery in 1973 -- first on the
promise that it would shore up the state's General Revenue Fund and curb
illegal gambling, then later on the promise that lottery receipts would be
used specifically for education.

But none of these three objectives have been met, according to accounting
professor Donald W. Gribbin and historian Jonathan J. Bean of Southern
Illinois University in their recent study for THE INDEPENDENT REVIEW
("Adoption of State Lotteries in the United States, with a Closer Look at
Illinois," Spring 2006).

First, net lottery receipts have ranged from 0.36 percent to 4.20 percent -- 
hardly a significant portion of the state's General Revenue Fund. Second,
the state lottery did not put an end to illegal gambling in the Windy City.
(Indeed, a 1988 study estimated that the state lottery lost about $200
million a year in potential revenues to illegal lotteries, and a 1989 study
estimated that organized crime netted up to $100,000 for each electronic
gambling machine in forty Chicago bars and restaurants.) Finally, even
though Illinois lottery receipts must go to the state's Common School Fund,
"analysis of financial data indicates that earmarking did not increase
education funding, but simply diverted funds to other uses," write Gribbin
and Bean.

Although the Illinois state lottery has not achieved its public goals, it
did help advance one unannounced goal -- diverted lottery revenue helped
save Chicago's faltering Regional Transit Authority. But because taxpayers
outside of Chicago would not have embraced this objective, Gribbin and Bean
conclude that the CHICAGO TRIBUNE was prophetic when it warned, in the early
1970s, that a lottery would enable legislators to avoid taking
responsibility for state and local fiscal woes.

See "Adoption of State Lotteries in the United States, with a Closer Look at
Illinois," by Donald W. Gribbin and Jonathan J. Bean (THE INDEPENDENT
REVIEW, Winter 2006)
http://www.independent.org/publications/tir/article.asp?issueID=44&articleID=559

Subscribe to THE INDEPENDENT REVIEW
http://www.independent.org/store/tir/subscriptions.asp

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THE LIGHTHOUSE
ISSN 1526-173X
Copyright © 2006 The Independent Institute
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