July 2003
Ronald Reagan: Legacy for Europe

When President Ronald Reagan took office in January 1981, the U.S. economy was in shambles, its armed forces demoralized, and democratic capitalism in retreat worldwide. Ronald Reagan supported freedom movements throughout the world, rebuilt American armed forces, and cut taxes and deregulated the economy. His economic revolution put the United States back on the road to prosperity; his international leadership paved the way for the victory over the Evil Empire and the Autumn of the Peoples in 1989. “The Great Communicator” succeeded despite opposition from the media and the chattering classes--he appealed directly to the American people and friends of liberty everywhere. What made Reagan’s presidency so exceptional? Can his methods be applied in Central Europe? The New Atlantic Initiative and the Adam Smith Research Centre examined these questions and more at this conference in Warsaw, Poland, on Ronald Reagan’s legacy in Europe.

 
Introductory Remarks
Leszek Balcerowicz, Central Bank of Poland 
 
Ronald Reagan and Margaret Thatcher changed the paradigm of economic policy in the Western world--they gave new power to the classical ideas that a strictly limited state, which enables a free market, is the best framework for economic prosperity, for the work ethic, and for democracy. These ideas were later implemented by reformists in countries, which proved to be most successful in transforming their economies from communism to market economy. Nonetheless, the forces of statism have not disappeared in the West nor in the East. There will always be politicians who see economic benefits in limiting other people’s freedoms. Ronald Reagan’s battle for a limited state will therefore never end.
 
Victory over the Evil Empire
· Radek Sikorski, NAI
· John Lenczowski, Institute of World Politics
· Ambassador Christopher R. Hill, U.S. Embassy in Warsaw
· Mart Laar, Estonian Parliament
· Piotr Wierzbicki, Gazeta Polska
· Peter J. Wallison, AEI 
 
Ronald Reagan spoke the truth about the Soviets. He said they would lie, cheat, and commit crimes to further the goals of communism. He bolstered international broadcasts--the Voice of America, Radio Free Europe, and Radio Liberty, which provided unfiltered information to the captive nations and launched the National Endowment for Democracy. By doing this he revived relations with the peoples of the Soviet empire and not the governments. His message was able to get across the Iron Curtain even to the simple Polish farmer, who would remark that, “there is only one American--who has ever understood the Russians, and that is your president, Ronald Reagan. He is God’s gift to your country.”
 
In the face of massive Soviet-led disarmament propaganda in the West, Ronald Reagan made the case for the military buildup. He sent aid to the Nicaraguan resistance, the Afghan mujahedin, and resistance movements in Southern Africa. His rescue mission to Grenada amounted to the toppling of the first communist regime to be overthrown in history. The Soviet military began to fear Reagan. They considered him to be a “crazy cowboy” who could “really push the button.” Reagan was the first American president who was not afraid of the Soviets but made the Soviets afraid of him.
 
Reagan drew his energy from the power of his convictions. When he came to believe in something it was unshakable. When he convinced himself that the Soviet Union was not destined to be a permanent figure in the flow of time, he would structure his policy to reflect those beliefs, regardless of the opposition. Germany, France, Canada, Norway, Greece, Italy, and even Margaret Thatcher’s Great Britain were against the economic sanctions that Reagan imposed on Poland after the proclamation of Martial Law. Former Republican presidents Gerald R. Ford and Richard Nixon opposed Reagan’s policy of dismantling détente and his military buildup. On many domestic issues Reagan had to face opposition even from his own White House staff. Yet Reagan prevailed because of his firm beliefs and willingness to stay the course.

The Twenty-Years’ Boom--What are the Lessons for Europe?
· Jacek Rostowski, Central European University
· James K. Glassman, AEI
· Robert Gwiazdowski, Adam Smith Research Centre

Reagan led America to economic prosperity through four main policy changes. First, by shifting federal spending toward defense while maintaining a safety net for the poor. Second, by dramatically cutting taxes. Third, by implementing tough monetary policy. Fourth, by deregulating the economy. Reagan succeeded because the economy was in such bad shape that strong action needed to be taken. He created a supply-side revolution, resulting in what is probably the greatest twenty years of prosperity enjoyed by any nation in history.

Central European countries such as Poland reached a point where they must choose whether to join “Complacent Europe” or “Aspirational Europe” rather than Old or New Europe. The former is dominated by statism, high taxes, and a culture of contentment and satisfaction--it is a fool’s paradise. Aspiring Europe is not afraid of introducing tough reforms to achieve a high level of economic growth. Since the starting position of post-communist countries is much worse than that of the United States when Reagan took office, the Central Europeans could proceed even beyond what Reagan did and, for example, introduce the flat tax or abolish the personal income tax altogether.

Keynote Speech
Newt Gingrich, AEI; former Speaker of the U.S. House of Representatives

To understand Ronald Reagan's presidential legacy, you must understand his big principles. Reagan focused his presidency on three major ideas: that American civic culture has to be renewed, that markets work, and that strength--both moral and physical--can lead not only to security but to victory.  He fought his battle to win over communism with two other great leaders of the Western world--Pope John Paul II and Margaret Thatcher.  Reagan possessed a certainty of right versus wrong. He had the courage to stand alone, and ignore the elites. At the same time, however, he mastered pragmatism and negotiated like a good union leader. However, the essence of Reaganism was the president’s cheerful optimism. He believed that the world could be better and that the future can be brighter than the past. Perhaps the most important task for the conservative movement for the next twenty years is to teach that kind of optimism.
 
Media and the Politics of Success
· Jerzy Marek Nowakowski, Wprost
· Mark Burson, Ronald Reagan Presidential Library
· Jaroslaw Sellin, Poland’s National Council for Radio and Television
· Steven F. Hayward, AEI
· John Fund, Wall Street Journal

“The Great Communicator” did three things to deal with largely hostile media. First, he transmitted a sunny, optimistic, and self-assured image. Second, he conveyed simple, direct and forward-looking message of hope and opportunity. Third, and maybe never fully appreciated, he deregulated the media. Reagan rarely adhered to poll numbers and seldom gave in to criticism from colleagues, media derision, or attacks from political opponents. He remained resolute and the constancy of his message resonated far and wide. He did not fight the media but transcended it--this is the lesson for the Center-Right in post-communist Europe, which also faces a hostile media.

Dinner Speech
Lech Kaczyński, mayor of Warsaw; former Polish minister of justice

Even though Poland was enslaved after World War II, the Poles never gave up their struggle for freedom. They rebelled in 1956 and then again in 1968. In the 1970s, Poland had a well-organized anti-communist opposition, and in 1980 the Solidarity movement was born. These developments undermined the system from within. However, victory over communism would not have been possible if it were not for outside help--the support of the United States and President Ronald Reagan. Poles are indebted to him now and will continue to be for the next ten, fifty, and 100 years.

Rzeczpospolita Essay Competition

The finalists of the essay competition on “Why President Ronald Reagan Deserves a Street of His Name In My Town” were:

High School Students Category:
1. Ms. Maria Ebner
2. Mr. Jan Polak
3. Ms. Anna Jurczak

University Students Category:
1. Mr. Leszek Paterek
2. Ms. Karolina Nowak
3. Mr. Pawel Rogalski

Newt Gingrich, former Speaker of the U.S. House of Representatives, awarded the main prizes--two Dell laptops with Intel Pentium Mobile Processors.

The conference’s cosponsors were the Carthage Foundation, the City Government of Warsaw, Dell Corporation, Długie Rozmowy S.A., Rzeczpospolita, Wprost, and International Policy Review. Over 200 policymakers, journalists, and businessmen from Central and Eastern Europe attended the event. Among them were the initiators of naming a roundabout in Tarnow, Poland, after Ronald Reagan--the circle is the first and the only known street name in Europe that bears America’s fortieth president’s name. The conference’s organizers also called for naming one of the streets in Warsaw after Ronald Reagan and were promised support from Mayor Lech Kaczyński.