|
Cato Institute ranks among the top free-market thinks tanks in North America. (Photo credit: Wikipedia) |
The history of the London exchange dates back to 1698. John Castaing, a pioneer of a
Starbucks
of sorts, started listing stock and commodity prices in his Jonathan’s
Coffee-house. In 1773, brokers erected their own building nearby, and
soon their place was named “The Stock Exchange.” Companies were very
diverse, evaluating them was essential to decide where to invest.
Interest (or nominal yield) and risk were the two main factors. It took
centuries for the price/earnings ratios and other indices to evolve.
When new institutions and corporations emerge, it is always difficult
to find the proper measurement to appraise them. In the early years of
the information technology revolution, it was a hard task to estimate
the value of a company—and as the latest
Facebook
IPO shows, it is still a challenge. At almost the same time of the
emergence of this revolution, another more modest “industry” was about
to take off:
public policy think tanks.
And what about them? Some think tanks are obviously more effective
than others. Evaluating, measuring, or estimating their outcomes, and
ranking them, has not been easy for their donors, one of their main
clients. In 1985 I joined a foundation devoted to help start and support
market-oriented think tanks. Since then I have been tracking and trying
to evaluate market-oriented think tanks.
A “market-oriented” think tank is grounded on the reality that respect for
private property within a context of rule of law with
limited government has been the path for the wealth of nations. Think tanks that are not market-oriented study how to
redistribute wealth, how to increase taxation, or
the optimum rate of monetary debasement.
Governments have typically relied on their own internal think tanks for
that research, and complemented it by research from state-subsidized
universities. Market-oriented think tanks focus on finding private
solutions to public problems.
After a long career helping support and giving advice to think tanks around the world, Dr. James McGann, at the
University of Pennsylvania,
recently began compiling a comprehensive list of think tanks. The first
list, released in 2006, had no evaluations. He soon asked those who
nominated think tanks to rank them. The list of nominators and
evaluators has grown to over 1,000. Like with any index or ranking,
there is much to improve and the authors always welcome constructive
advice. A preliminary version of the “2012 Global Go To Report” was
released last week at the World Bank and the United Nations. It can be
found on line at
www.GoToThinkTank.com.
READ MORE