: THE LIGHTHOUSE
"Enlightening Ideas for Public Policy..."
Vol. 8, Issue 8; February 20, 2006

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IN THIS WEEK'S ISSUE:
1. White House Approves Arab Operations at U.S. Ports
2. U.S. Aids World's Worst Dictators
3. European Commission Urges Immigration Liberalization
4. How States Can Spur Economic Development

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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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WHITE HOUSES APPROVES ARAB OPERATIONS AT U.S. PORTS

Dubai Ports World, a company owned by the government of the United Arab
Emirates (UAE), has won U.S. approval to control significant operations of
six major American ports, the Associated Press reported Saturday. Despite
opposition from members of Congress, who say that the UAE has been an
inconsistent ally in the U.S. war on terrorism, a White House spokesman said
the $6.8 billion deal (Dubai Port World's purchase of the operations from a
British company) was scrutinized carefully by a federal board and that its
decision was final.

"The approval should stand," writes Independent Institute Senior Fellow Ivan
Eland, director of the Center on Peace & Liberty, in his latest op-ed.

Eland argues that Dubai Port World's operations might actually reduce the
likelihood of a terrorist attack involving a U.S. port: "In fact, since two
of the 9/11 hijackers were from the UAE, Dubai Ports World might even have a
stronger interest in operating safe and secure ports than companies from
other nations," Eland writes. "Dubai has a worldwide presence, an extensive
history of operating ports, and a reputation to uphold. If a terrorist
incident occurred in one of its ports, the company would probably lose more
business worldwide than a non-Arabic company would under the same
circumstances."

Eland then argues that U.S. authorities should have similarly resisted,
rather than succumbed to, anti-Arab jingoism after the 9/11 terrorist
attacks, when the U.S. government incarcerated people based on their Arabic
nationalities and Islamic religion. "The Bush administration was right to
insist that no security threat emanated from a routine business purchase of
a British firm by an Arab company. The politicians should quit posturing and
move on to more important issues," Eland concludes.

"Dubai Ports World: Commercial Racial Profiling," by Ivan Eland (2/20/06)
http://www.independent.org/newsroom/article.asp?id=1677
SPANISH TRANSLATION:
"El caso de la empresa Dubai Ports World: Perfil racial comercial"
http://www.elindependent.org/articulos/article.asp?id=1677

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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U.S. AIDS WORLD'S WORST DICTATORS

The United States and its partner countries in the Organization for Economic
Co-operation and Development (OECD) have given nearly $55 billion in aid to
the 20 worst dictatorships in power today, report Independent Institute
Research Fellows Benjamin Powell (director, Center on Entrepreneurial
Innovation) and Matt Ryan in a new op-ed.

Sudan's Omar al-Bashir is the most oppressive dictator in power, according
to a recent ranking in PARADE magazine. About al-Bashir, Powell and Ryan
write: "During his reign OECD countries gave his regime more than $6 billion
in non-military aid. The U.S. accounted for more than $1 billion of that
aid." Similarly, PARADE's second worst dictator, Kim Jong-Il of North Korea,
has "received a little over $1 billion in aid, with more than half of it
coming from the U.S," write Powell and Ryan.

U.S. foreign aid has failed to promote economic development or reduce
government oppression. "By providing aid to these dictators the U.S. has
given them a source of funds to use to secure political support and likely
prolonged their oppressive reigns," Powell and Ryan conclude.

See "U.S. Money Aids World's Worst Dictators," by Benjamin Powell and Matt
Ryan (2/13/06) http://www.independent.org/newsroom/article.asp?id=1671
SPANISH TRANSLATION:
"El dinero estadounidense ayuda a los peores dictadores del mundo"
http://www.elindependent.org/articulos/article.asp?id=1671

Center on Entrepreneurial Innovation (Benjamin Powell, director)
http://www.independent.org/research/coei/

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EUROPEAN COMMISSION URGES IMMIGRATION LIBERALIZATION

Have recent immigrants to European countries contributed positively or
negatively to their economies? According to a recent report published by the
European Commission, protectionists opposed to immigration have been dead
wrong about its probable harm, reports Independent Institute Research Fellow
Alvaro Vargas Llosa in a new op-ed.

The report concludes that "the three countries that lifted restrictions on
labor mobility [Britain, Ireland, and Sweden] have seen their economies grow
more and create more jobs than the rest because migrant workers have
essentially filled skill shortages in construction, restoration and other
services," writes Vargas Llosa. "And in those countries where they were
welcomed, there has not been an increase in the number of people applying
for welfare benefits -- the vast majority of workers simply want to work."
The commission is now urging the 12 countries in Europe with strict
immigration restrictions to reduce the restrictions.

Concludes Vargas Llosa: "The wonderful irony of the prejudice against Polish
plumbers in countries like France is that France has created dozens of
thousands of jobs in France thanks to French investments in Poland. And,
before I forget, most plumbers in Poland are actually from Ukraine."

"In Defense of Polish Plumbers," by Alvaro Vargas Llosa (2/16/06)
 http://www.independent.org/newsroom/article.asp?id=1675
SPANISH TRANSLATION:
"En defensa de los fontaneros polacos"
http://www.elindependent.org/articulos/article.asp?id=1675

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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HOW STATES CAN SPUR ECONOMIC DEVELOPMENT

Can state governments foster local economic development by funding venture
capital companies that invest primarily in their state? A new $50 billion
program in Wisconsin assumes the answer is yes, and state governments in
Colorado, Michigan, Ohio, Oklahoma, and Minnesota have already initiated
such programs.

But "the trend of state-sponsored venture capital funds have the cart before
the horse," writes Independent Institute Research Fellow Joshua Hall in a
new op-ed. Hall summarizes a recent study indicating that increases in
entrepreneurial activity (measured by sole proprietorships and patent
activity in a state) draw venture capital into a state -- not the other way
around. Apparently, public funding of venture capital merely crowds out
privately funded entrepreneurship and development.

The policy implication, according to Hall, is that states could spur local
development by making state policies more friendly to entrepreneurs, namely
by improving economic freedom in their state: "In other words, policymakers
should follow the example of states like North Carolina and Nevada and focus
on lowering taxes, securing property rights, minimizing regulatory barriers
and other public policies consistent with individual freedom. By doing so,
it will increase the rate of new business start-ups, and the venture capital
necessary to help fund these new ventures will flow into the state
automatically."

See "How Should States Encourage Entrepreneurship?" by Joshua Hall (2/15/06)
http://www.independent.org/newsroom/article.asp?id=1674
SPANISH TRANSLATION:
"¿Cómo deberían los estados fomentar la actividad empresarial?"
http://www.elindependent.org/articulos/article.asp?id=1674

Center on Entrepreneurial Innovation (Benjamin Powell, director)
http://www.independent.org/research/coei/

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THE LIGHTHOUSE, edited by Carl P. Close, is made possible by the generous
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THE LIGHTHOUSE
ISSN 1526-173X
Copyright © 2006 The Independent Institute
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