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8/30/1963 - Milton Friedman comes to town by Gayl D. Ness

INSTITUTE OF CURRENT WORLD AFFAIRS Road ilton Friedman comes Petaling Jays Selangor Malaya Mr Richard H Nolte August Institute Current World Affairs Madison Avenue New York New York Dear Mr Nolte Milton Friedman caused intellectual ferment academic Sleepy Hollow known He talke treasury officers directors University Economic Society leaving trail anger despair A professor Economics University Chicago Friedman often called priest enterprise today cannot believe fully power enterprise without eliciting cries heretic fellow professionals Even enemies admit however brilliant though often disliked unorthodox views Through rancour Friedman remains gentlemanly especially disconcerting adversaries extremely logical piercing debate One young treasury B A Honours Economics University Malaya He could pieces everything It gives inferiority complexl I attended Friedman Economic Society lecture indUstrialization India Japan He argued Japan began drive industrialization advantageous position India began drive Japan closed world years modern technical skills India Japan received almost outside financial support while India receiwed considerable external technical financial support completely Yet measure Japan economic development rapid India prospects India indicate quickening growth For Friedman crucial difference market restrictions Japan India superabundance Japan forced compete fierce world market The result inefficient industries entrepreneurs driven efficient survived This shipbuilding other state supported industries which Friedman thinks waste economy resources It however textiles other small industries agriculture growth really impressive India taken licensing import restrictions according Friedman protect efficient industries entre preneurs force efficient entrepreneurs waste their getting around restrictions rather spending their usefully production I small industrialists Punjab They little operations going spend about their getting around import restrictions Friedman leasure agree Mira really enlightening thing about encounter audience reaction Some listeners angered other depressed I think really understood Friedaan saing A Malayan Indian treasury economist about India JaPan remember India goals welfare social jUStice equality Japan never India wants sprea wealthj raise living standard people Friedmant There known paved intentions Results important Japan achieved egalitarian society higher standard living By concentrating production could By being concerned equalizing distribution wealth The Malayan Indian again Remember India private enterprise The country fully socialist hypothetical figure And JaPan goverent enterprise perhaps Isn possible India growth private enterprise Japan rapid growth state enterprise Friedman smile Yes perfectly possible India growth result private enterprise Japan rapid growth result ofIgovernment enterprise I think audience questioner bothered follow But there nothing about private enterprise private enterprise When begin licensing place premium acquisition license great advantage those license advantage nothing efficiency production A young Malay government officer Bitterness I From there appears Be countries Friedman On contrary Look century experience produce economic development Loom around world countries achieve standards living their populations predominantly markets Now across Straits example country Mac trough restrictions brought economy absolute stanstill I testifies great independent power ideas maintained contrary evidence With experience about thing produced economic growth I guarantee central m0netary restrictions balance payments difficulties Withln three years Anothertreasury Malay inelligent But We other people raise tariffs discriminate against products protect ourselves Friedaan They hurting themselves They their goods Why should One could almost pressure building against unorthodox position competently I Justice exchange easily calmly challengers picked apart ideas called shibboleths modern national economic development planning ThmProfessor Ungku Aziz Economics Department raise another point It probably advantage Japan India large corps colonially trained white collar workers But there important difference between India Japan One could argue Japan rapidly because ground population coaghly suppressed colonialismS This brought house bravo cheers applause The tension found release The house almost sighed Now Johnny I think anyone bothered listen Friedman reply As member colony I appear wrong I think India experience under colonialism She except number ideas result economic stagnation How account audience reaction A calmly presents intellectual viewpoint people react impatience anger espair Why should argument market freedom allowing natural selection market place produce strong negative reaction The answer undoubtedly audience perception Friedman simply particular intellectual position He representative wealthy capitalist nation saing Do become Such argument inferred rather implied unacceptable these hypersensitive underdeveloped intellectuals Further nationalist fervor still lingers intellectual breast vicarious direct experience Malayans argument colonial experience economically totally unaccept Then there color Friedman Any argument suspect Only after Friedman excellent lecture economics Professor Mynt Burmese teaching Oxford He levelled srious humiliating attack ideas Professor Aziz example reaction euphoric acceptance Aziz One suspects thatnot people really understood argument either But I think there Something involved which I intellectualS freedom A friend remarked All brains There decent argument conservative politics century On whole I would agree argument confined politics Economically I should matter differently From discussions Malaya I gained strong impression least economically right The people intestinal fortitude ideas about increasing production building things acting businessmen entrepreneurs intellectuals bureaucrats It entirely unfair latter groups concerned stopping things often called injustices irregularities doing things Like French generals stomach fight There exceptions course In Malaya these concentrate certain activitie Ministry Rural Development heywere lecture Of course I intellectuals clearly injustice horrors early industrial transformation They after brought Di ckens Marx Laski Ashton Hayek To intellectuals cause injustice unrestrained eConomic freedom license They restrictions attain wealth without injustice altogether noble sentiment Yet their secret admiration tactics Russians Chinese tactics forced capital formation indicates accept notion costs The costs avoid appear costs based ability survive competition others market place where criteria evaluation clear unmistakable This competition leads intellectuals romantic attachment cooperatives which intellectuals admit compete inthe market place community development friendly atmosphere embodied often called native values rural I Friedman lecture strong impressions The intellectuals really afraid letting things themselves afraid competition where success clearly And economic development requires proably courage fight brains Thus intellectuals angered Friedman fortunately economic prognosis Malaya country appears rather ureaucrats intellectuals entrepreneurs least commitment asystem allow degree freedom The bureaucrats willget built shuffle papers basket basket intellectuals primarily concerne producing clerks bureaucracy listening despair Friedman denouncing system allows please entrepreneurs business increasin production incidentally making money themselves others Sincerely ReceivedIn NewYork September