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Showing posts with label neoliberalism. Show all posts
Showing posts with label neoliberalism. Show all posts

Thursday, 14 February 2019

Neoliberalism is killing our love lives

Dependency and power imbalances brought on by capitalist financial insecurity are the enemies of true romance writes Bhaskara Sunkara in The Guardian


 
A broken heart drawn by a patron is shredded at Bottom Line, a bar and dance place in downtown D.C., which invites people to come and shred photos and cards from ex-spouses and lovers in honor of Valentine’s Day. 


For many of us, Valentine’s Day is a reminder that our love life sucks. Maybe we just had an unhappy end to a relationship, maybe we’re struggling to keep alive an existing one. For those of us, the conventional advice we receive is drab and unconvincing. Sure, having a regular date night to “keep the love alive” is just fine, I suppose. But if you really want to get the sparkle back, why not engage in a militant class struggle this Valentine’s Day instead?

You see, countries with powerful working-class movements tend to have more social rights and guarantees. And those protections can make your love life a lot less stressful.

Most Americans feel overwhelmed by their financial obligations, and it’s the leading cause of friction in relationships. That’s no surprise in a country where life is so precarious – where a trip to the hospital, a layoff, or shifts in the housing market can change everything. We’re overworked at our jobs and underpaid. Powerless to bargain for a better deal from our bosses, we zero-in on our partners’ spending habits or priorities instead.

Our financial insecurity also keeps us unhappily wedded to relationships we should leave. The median wage for a worker in the United States is $857 a week before taxes – most of us would struggle to take care of children on one income. For women, shouldering most of the burden of unpaid household work and dealing with workplace pay disparities, the situation is especially bad. What’s more, a quarter of women under 64 get their health insurance from their spouse’s plan. Loving marriages can be wonderful, but dependency and power imbalances are the enemies of true romance. 

Things don’t have to be like this. And we needn’t imagine what a better alternative looks like – it already exists, just not here. A century ago, life in Scandinavia was just as cutthroat as it was in the United States. A 1902 New York Times articles describes Sweden as “the most feudal and oligarchical country in Europe” – only rivaled by Tsarist Russia. Contemporaries called the country an “armed poorhouse”. But, over time, capitalism in the region was humanized by socialists and trade unionists. Working people joined vast labor confederations to collectively demand higher wages and shorter workdays from their employers. They also joined new parties set up to fight for the interest of regular people in government.

As well as more fairly distributing income for workers, the system allowed people to meet their basic needs outside the workplace. Even at the peak of social democracy, life wasn’t perfect, but the changes were especially profound for women. Child allowances, family leave, child care, even the provision of school meals – all eased the pressures placed on them by society. Beyond such legislation, the principle of “equal pay for equal work” and industry-level trade union bargaining favored sectors that disproportionately employed women.

During the 1960s in Sweden, still not content with the progress toward sexual equality, the governing social democrats and feminists took steps to generate policy that encouraged “free development” for women, challenged traditional sex roles, and expanded abortion rights. Despite rollbacks to its welfare state, the country is still one of the most equal in the world (and parents there are still entitled to 480 days of paid parental leave, compared to zero days in most of the United States).

Kristen R Ghodsee, in her book Why Women Have Better Sex Under Socialism, observes a similar phenomenon in the Eastern Bloc. “Women [had] no economic reason to stay in abusive, unfulfilling, or otherwise unhealthy relationships” in countries where state guarantees meant that “personal relationships could be freed from market influences.” Of course, states like East Germany and Czechoslovakia were marked by political repression. But the experience of European social democracy shows that the same positives can be achieved in a far more liberal political environment.

And yes, as far as Ghodsee’s book title goes, there is proof that more secure people have better sex and are more sensitive lovers.

Will all these protections cure heartache? Are all your relationship woes rooted in economic anxiety? Absolutely not. But by organizing collectively, we can become more empowered as individuals. And when strong, free individuals decide to love they make for better partners.

Friday, 26 May 2017

India: The bleak new academic scenario

Krishna Kumar in The Hindu


The other day, a student asked me what exactly the word ‘liberal’ mean. She wanted to know whether ‘liberalisation’ promotes ‘liberal’ values. She had noticed that institutions of higher education, which are supposed to promote liberal values, were finding it difficult to resist ideological and commercial pressures triggered by the process of economic liberalisation. So, was economic liberalism different from political liberalism? And what do people mean when they refer to neo-liberal policies? The questions she was asking could hardly be addressed without invoking the political economy that has emerged over the last three decades.

When liberalisation of the economy started to receive common consent in the mid-1980s, few people thought of examining what it would mean for education. Then, in 1991 came the dramatic announcement of a new economic policy, accompanied by a package of steps to be taken for ‘structural adjustment’ of the Indian economy. The purpose of ‘adjustment’ was to facilitate India’s integration into the global economy. Even then, education didn’t receive specific attention. Some critics of the new economic policy expressed anxiety about the consequences of state withdrawal from its prime role and responsibility in sectors like education and health. The national policy on education drafted in 1986 had mostly adhered to the established state-centric view. A major review in the early 1990s vaguely resonated the new discourse of liberalisation, but offered little evidence of change in the basic perspective. The Programme of Action, announced in 1992, stopped short of admitting that the state’s role in education was about to change. Nobody could imagine at that point that over the following decades, the state’s role in education would change so much that the Constitution would begin to sound like rhetoric.

School education


In order to examine what happened, we must make a distinction between school and higher education. When Prime Minister P.V. Narasimha Rao spoke about liberalisation as the central theme of the new economic policy, he also referred to the ‘structural adjustment programme’. Under this programme, the World Bank offered a ‘safety net’ for primary education. It meant additional resources and policy guidance to enable the system to expand its capacity for enrolling children. The District Primary Education Programme (DPEP), which later mutated into Sarva Shiksha Abhiyan (SSA), symbolised the ‘safety net’ approach. It was designed to cushion the harsh effects that ‘structural adjustment’ under liberalisation was expected to cause in welfare sectors like children’s education and health. The DPEP and SSA efficiently served this role, creating an ethos in which children’s education seemed to have become a major priority of the state. The success of these programmes emboldened the government to push the Right to Education (RTE) law through Parliament. Governments of many States registered their anxiety over their capacity to fund the implementation of RTE after the Central assistance provided under SSA runs dry.

How valid that anxiety was is now amply clear. All across northern India, the DPEP and SSA have left a radically expanded system that no one wishes to own. The contractual teachers appointed on a massive scale to fulfil the ambitious goals of DPEP and SSA are crying aloud for dignity and stability. Post-RTE, many State governments have drawn on the services of mega-NGOs and private companies to look after schools. As one might guess, it is children of the poor who attend these schools. Under the policy of liberalisation, the state has outsourced these children to non-state players. Those belonging to the better-off sections of society have moved to private schools.


Higher education


In higher education, the new economic policy designed on the principles of liberalisation offered no safety net. From the beginning, the assumption was that higher education ought to generate its own resources. An accompanying idea was that higher education should respond to market demands in terms of knowledge and skills. Over the last three decades, these two guiding ideas have dented the established system of higher education in all parts of the country. Both Central and State universities have been starved of financial resources. Cutting down on permanent staff, both teaching and non-teaching, has emerged as the best strategy to cope with financial crunch. A complex set of outcomes, specific to different universities, makes any general analysis difficult. In some, self-financed courses, mostly vocational in nature, have provided a means of income. In others, such courses have been resisted by teacher unions. However, these unions have gradually lost their power and say because they are broken from within.

A shrinking elite of senior, permanent teachers is struggling to represent a vast underclass of frustrated and vulnerable ad hoc teachers. The old idea that an academic career should attract the best among the young holds no meaning now. Research fellowships have been used as a cushion to absorb the growing army of unemployed, highly qualified young men and women. They have no organised voice, and each one of them is individually too vulnerable to protest against continuous exploitation.

This is the bleak new academic scenario. In India, the term ‘liberal’ essentially meant a voice representing courage and wider awareness. Training of such a voice was the main job of colleges and universities. This function grew under severe constraints in colonial times. The constraints were both social and cultural, but as electoral democracy advanced, political constraints gained ground. Politicians of every ideological persuasion resented the role of colleges and universities in maintaining the supply of critical voices. These institutions have now been forced to compromise their role in training the young to speak out. The compromise has taken over three decades to occur. It is hardly surprising that no political party shed a tear. So, if we now return to the question my young student had asked: ‘Does liberalisation promote liberal values?’ The answer is, ‘It hasn’t.’ Rather, it has eroded our society’s institutional capacity to train young people who might pursue liberal values by exercising an independent voice.

Tuesday, 14 February 2017

Finance and facade

Tabish Khair in The Hindu


REGULATION NEEDED: “Finance capital is the storm, and our governments can and will do nothing about it."  




Imagine a mythical planet not visited by the Little Prince. This is a planet divided up into a thousand and one sections with walls between them. There are doors in the walls, and windows of course. But there is no roof to the planet. Everyone on the planet is affected by storms that cross the skies, sometimes devastating this section, sometimes that. Sometimes the storms afflict all the sections, but in different ways: flood in one place and hail in another; cyclone on one, landslide in another.

A man-made storm

The denizens of this planet are peculiar: they are mostly unable to look up. As such, many of them cannot see signs of a gathering storm. The few who can are helpless. What can they do about storms? This is also true of the various presidents, prime ministers, monarchs and dictators who govern the different sections of this planet. Many of these leaders even believe that the storms are necessary: some good will trickle down. So all they can do is regulate the doors and windows of their sections, and the citizens inside them.

We are living on this planet today. With one difference: most of the storm clouds circling us are man-made.

Finance capital is the storm, and our governments can and will do nothing about it. If you are running a national government but cannot really regulate financial speculation and finance capital as the main source of power, what is it that you can do? Regulate people — as citizens and as foreigners. That is the condition, in slightly different ways, of almost every country in the world today.

When liberal capitalism died

Sometime in the 1980s, a strange thing happened to classical liberal capitalism. It was murdered. No one noticed the crime. Today, we are living with the dead body of liberal capitalism, which is why leftist critiques of it also fail. What we have today is said to be neo-liberalism, but neo-liberalism is almost as different from classical capitalism as night is from day. Actually, neo-liberalism is partly a misnomer: it has little to do with liberalism.

Liberalism insisted on the separation of the state and the market, and decried government interference in markets. Neo-liberalism believes that governments should intervene in markets — but only on the side of banks, finance capitalists and lending agencies. Every time financial speculation creates a crisis, governments are expected to tax their citizens and use that money to save banks and financial institutions. Even if one argues, as some do, that liberal capitalism was always to some extent state capitalism, this signifies a major shift.

We have known since the 19th century that money makes better sense than production or services in capitalist societies. Goods and services fluctuate in demand, but money has to be employed no matter what good or service is on offer. Hence, it makes sense, finally, to traffic only in money. Financial speculation is built into capitalism. 

But when financial speculation takes over, as it started doing from the 1980s, an entirely different situation comes into being. Today, financial speculation far outstrips global trade. Finance capital tyrannises not just social capital but even industrial capital. Most of the capital used for such financial speculation does not need to be invested in production or services; it can just be moved around in, as U.S. President Donald Trump said about his taxes, ‘smart’ ways. Most of this capital is not even in the shape of cash, which is cumbersome to move. It is sheer numbers, including digital money, and many types of debt and credit.

Mr. Trump’s victory is the assault of finance capital on not just social capital (welfare, public facilities, etc.), which has long been battered, but this time also on industrial capital. Mr. Trump might actually try to ‘bring jobs home,’ but what this will lead to is greater curbs on industrial capital — not only leaving finance capital free, as his Wall Street appointments have indicated, but probably forcing more industrialists to convert industrial capital into financial speculation. Demonetisation in India might be a sincere attempt to fight corruption, but it will also reinforce the ascendency of finance capital, regardless of what the government wants.

Maurizio Lazzarato points out in Governing by Debt that all national governments are basically employed in collecting taxes from their citizens and cutting on social services, in order to keep paying national and other debts to financial organisations. National leaders have come to believe that ‘economics’ is an independent field, far from politics, when actually economics is the new politics of neo-liberalism. That is why governments are employed to tax citizens in order to repay financiers and banks, and governments are also employed to smoothen the paths of financial speculation.

A necessary façade


In this context, the nationalist policing of ‘undesirable foreigners’ is a necessary façade — to obscure the lack of governance of global finance. Xenophobia is inevitable in such a situation, because national leaders cannot even talk of the real storm — invisible finance capital; they can only regulate the bodies on the ground. The general scepticism of politicians — on which Mr. Trump, Turkish President Recep Tayyip Erdogan and so many others have ridden to power — arises from the fact that politicians only govern people today. They cannot govern global finance capital. Instead, finance capital governs politicians.

Politicians have abandoned much of actual politics to the economic ideologues of neo-liberalism, and they cannot even confess it to ordinary people.

Thursday, 10 November 2016

It was the rise of the Davos class that sealed America’s fate

Naomi Klein in The Guardian

They will blame James Comey and the FBI. They will blame voter suppression and racism. They will blame Bernie or bust and misogyny. They will blame third parties and independent candidates. They will blame the corporate media for giving him the platform, social media for being a bullhorn, and WikiLeaks for airing the laundry.

But this leaves out the force most responsible for creating the nightmare in which we now find ourselves wide awake: neoliberalism. That worldview – fully embodied by Hillary Clinton and her machine – is no match for Trump-style extremism. The decision to run one against the other is what sealed our fate. If we learn nothing else, can we please learn from that mistake?

Here is what we need to understand: a hell of a lot of people are in pain. Under neoliberal policies of deregulation, privatisation, austerity and corporate trade, their living standards have declined precipitously. They have lost jobs. They have lost pensions. They have lost much of the safety net that used to make these losses less frightening. They see a future for their kids even worse than their precarious present.

At the same time, they have witnessed the rise of the Davos class, a hyper-connected network of banking and tech billionaires, elected leaders who are awfully cosy with those interests, and Hollywood celebrities who make the whole thing seem unbearably glamorous. Success is a party to which they were not invited, and they know in their hearts that this rising wealth and power is somehow directly connected to their growing debts and powerlessness.

For the people who saw security and status as their birthright – and that means white men most of all – these losses are unbearable.

Donald Trump speaks directly to that pain. The Brexit campaign spoke to that pain. So do all of the rising far-right parties in Europe. They answer it with nostalgic nationalism and anger at remote economic bureaucracies – whether Washington, the North American free trade agreement the World Trade Organisation or the EU. And of course, they answer it by bashing immigrants and people of colour, vilifying Muslims, and degrading women. Elite neoliberalism has nothing to offer that pain, because neoliberalism unleashed the Davos class. People such as Hillary and Bill Clinton are the toast of the Davos party. In truth, they threw the party.

Trump’s message was: “All is hell.” Clinton answered: “All is well.” But it’s not well – far from it.

Neo-fascist responses to rampant insecurity and inequality are not going to go away. But what we know from the 1930s is that what it takes to do battle with fascism is a real left. A good chunk of Trump’s support could be peeled away if there were a genuine redistributive agenda on the table. An agenda to take on the billionaire class with more than rhetoric, and use the money for a green new deal. Such a plan could create a tidal wave of well-paying unionised jobs, bring badly needed resources and opportunities to communities of colour, and insist that polluters should pay for workers to be retrained and fully included in this future.

It could fashion policies that fight institutionalised racism, economic inequality and climate change at the same time. It could take on bad trade deals and police violence, and honour indigenous people as the original protectors of the land, water and air.

People have a right to be angry, and a powerful, intersectional left agenda can direct that anger where it belongs, while fighting for holistic solutions that will bring a frayed society together.

Such a coalition is possible. In Canada, we have begun to cobble it together under the banner of a people’s agenda called The Leap Manifesto, endorsed by more than 220 organisations from Greenpeace Canada to Black Lives Matter Toronto, and some of our largest trade unions.

Bernie Sanders’ amazing campaign went a long way towards building this sort of coalition, and demonstrated that the appetite for democratic socialism is out there. But early on, there was a failure in the campaign to connect with older black and Latino voters who are the demographic most abused by our current economic model. That failure prevented the campaign from reaching its full potential. Those mistakes can be corrected and a bold, transformative coalition is there to be built on.

That is the task ahead. The Democratic party needs to be either decisively wrested from pro-corporate neoliberals, or it needs to be abandoned. From Elizabeth Warren to Nina Turner, to the Occupy alumni who took the Bernie campaign supernova, there is a stronger field of coalition-inspiring progressive leaders out there than at any point in my lifetime. We are “leaderful”, as many in the Movement for Black Lives say.

So let’s get out of shock as fast as we can and build the kind of radical movement that has a genuine answer to the hate and fear represented by the Trumps of this world. Let’s set aside whatever is keeping us apart and start right now.

Friday, 30 September 2016

In his victory speech Jeremy Corbyn spelled out exactly why the establishment hates him so much

Youssef El Gingihy in The Independent

Jeremy Corbyn's conference speech yesterday underlined exactly why he has been subjected to a ferocious smear campaign. We have heard an endless catalogue of critiques: That Corbyn lacks leadership; that he is not electable; that Labour has become a protest party infiltrated by the far left. Yet the real reason behind these attacks is that Corbyn is a clear and present danger to powerful, vested interests.

For the first time in a generation, a Labour leader is truly challenging the cosy political consensus extending through the Thatcher-Blair-Cameron axis. The policies taking shape represent a clean break from several decades of deregulated free market economics.

Corbyn has positioned Labour as an anti-austerity party. He emphasised that the financial sector caused the 2008 crisis not public spending. This is important as Miliband and Balls mystifyingly failed to make this argument. One can only surmise that they were eager not to offend the City of London.

Corbyn promised to reverse privatisation of public services. This would mean renationalisation of the railways. It would mean restoring a public NHS reversing its privatisation and conversion into a private health insurance system.

It would mean an end to the outsourcing of council services. It would mean returning public services into public hands. And none of this is radical. Polling shows the majority of the public, including Conservative voters, is in favour.

It is no surprise that Richard Branson and Virgin seemingly used Traingate in an attempt to discredit Corbyn. Virgin would stand to lose billions in contracts if such policies went ahead. As would many other corporate interests - the likes of Serco, G4S, Capita and Unitedhealth to name a few.

Corbyn promised Labour will build enough social housing and regulate the housing market. Again, property developers, investors and construction firms would stand to lose from the restoration of housing as a social good rather than a financial instrument.

Corbyn vowed that bankers and financial speculators cannot be allowed to wreak havoc again. Regulation of the financial sector will have the City running scared - the party may well be truly over for them. Deregulated finance has resulted in industrial scale corruption profiting a tiny elite at the expense of ordinary people. This was evident not only during the crash but in the raft of scandals since, including LIBOR and PPI.


Corbyn added that the wealthy must pay their fair share of taxes. Labour would take effective steps to end tax avoidance and evasion. This would need to start with winding down the offshore empire much of which comes under the influence of the UK and the City of London.

Corbyn highlighted the grotesque inequalities driven by neoliberalism. The result has seen millions of ordinary people abandoned by a system that does not work for them. Here, Corbyn again broke with the consensus pointing out that immigration is not to blame. Scapegoating of migrants is convenient for elites keen to distract from the damage that they are causing. Corbyn emphasised that it is exploitative corporations, which are to blame for low wages not migrants. Over-stretched public services are down to Conservative cuts not immigration. However, after years of xenophobic anti-migrant rhetoric, winning this argument will require plenty of hard work.

On the economy, Corbyn promised investment with £500bn of public spending and a national investment bank. He also promised investment in research and development, education and skilling up of the workforce.

Yet none of this is especially controversial. Much of it is increasingly accepted as common sense amongst economists.

It is Corbyn's reset on foreign policy, which is truly intolerable for the establishment.

Corbyn spoke of a peaceful and just foreign policy. There would be no more imperial wars destroying the lives of millions; generating terrorism and migration crises. Arms sales to countries committing war crimes would be banned starting with Saudi Arabia. This will have set alarm bells ringing amongst the nexus of intelligence agencies, defence contractors and corporates. Corbyn is directly challenging the Atlanticist relationship paramount to the US-UK establishment and its global hegemony, particularly in the Middle East.

It is no surprise that the Conservatives and their mainstream media cheerleaders have therefore attacked Corbyn. The most damaging attacks, though, have come from his parliamentary party. The process of disentangling from the New Labour machine captured by corporate interests may still generate more damage.

As Corbyn and McDonnell have both made abundantly clear, socialism is no longer a dirty word. Corbyn's Labour - the largest party in Western Europe - is powering forward with a vision of forward-looking 21st century socialism.

Sunday, 21 August 2016

The death of neoliberalism and the crisis in western politics

Martin Jacques in The Guardian

The western financial crisis of 2007-8 was the worst since 1931, yet its immediate repercussions were surprisingly modest. The crisis challenged the foundation stones of the long-dominant neoliberal ideology but it seemed to emerge largely unscathed. The banks were bailed out; hardly any bankers on either side of the Atlantic were prosecuted for their crimes; and the price of their behaviour was duly paid by the taxpayer. Subsequent economic policy, especially in the Anglo-Saxon world, has relied overwhelmingly on monetary policy, especially quantitative easing. It has failed. The western economy has stagnated and is now approaching its lost decade, with no end in sight.

After almost nine years, we are finally beginning to reap the political whirlwind of the financial crisis. But how did neoliberalism manage to survive virtually unscathed for so long? Although it failed the test of the real world, bequeathing the worst economic disaster for seven decades, politically and intellectually it remained the only show in town. Parties of the right, centre and left had all bought into its philosophy, New Labour a classic in point. They knew no other way of thinking or doing: it had become the common sense. It was, as Antonio Gramsci put it, hegemonic. But that hegemony cannot and will not survive the test of the real world. 

The first inkling of the wider political consequences was evident in the turn in public opinion against the banks, bankers and business leaders. For decades, they could do no wrong: they were feted as the role models of our age, the default troubleshooters of choice in education, health and seemingly everything else. Now, though, their star was in steep descent, along with that of the political class. The effect of the financial crisis was to undermine faith and trust in the competence of the governing elites. It marked the beginnings of a wider political crisis.

But the causes of this political crisis, glaringly evident on both sides of the Atlantic, are much deeper than simply the financial crisis and the virtually stillborn recovery of the last decade. They go to the heart of the neoliberal project that dates from the late 70s and the political rise of Reagan and Thatcher, and embraced at its core the idea of a global free market in goods, services and capital. The depression-era system of bank regulation was dismantled, in the US in the 1990s and in Britain in 1986, thereby creating the conditions for the 2008 crisis. Equality was scorned, the idea of trickle-down economics lauded, government condemned as a fetter on the market and duly downsized, immigration encouraged, regulation cut to a minimum, taxes reduced and a blind eye turned to corporate evasion.

It should be noted that, by historical standards, the neoliberal era has not had a particularly good track record. The most dynamic period of postwar western growth was that between the end of the war and the early 70s, the era of welfare capitalism and Keynesianism, when the growth rate was double that of the neoliberal period from 1980 to the present.



Ronald Reagan and Margaret Thatcher, pictured in 1984, ushered in the era of neoliberalism. Photograph: Bettmann Archive

But by far the most disastrous feature of the neoliberal period has been the huge growth in inequality. Until very recently, this had been virtually ignored. With extraordinary speed, however, it has emerged as one of, if not the most important political issue on both sides of the Atlantic, most dramatically in the US. It is, bar none, the issue that is driving the political discontent that is now engulfing the west. Given the statistical evidence, it is puzzling, shocking even, that it has been disregarded for so long; the explanation can only lie in the sheer extent of the hegemony of neoliberalism and its values.

But now reality has upset the doctrinal apple cart. In the period 1948-1972, every section of the American population experienced very similar and sizable increases in their standard of living; between 1972-2013, the bottom 10% experienced falling real income while the top 10% did far better than everyone else. In the US, the median real income for full-time male workers is now lower than it was four decades ago: the income of the bottom 90% of the population hasstagnated for over 30 years.

A not so dissimilar picture is true of the UK. And the problem has grown more serious since the financial crisis. On average, between 65-70% of households in 25 high-income economies experienced stagnant or falling real incomes between 2005 and 2014.

The reasons are not difficult to explain. The hyper-globalisation era has been systematically stacked in favour of capital against labour: international trading agreements, drawn up in great secrecy, with business on the inside and the unions and citizens excluded, the Trans-Pacific Partnership (TPP) and theTransatlantic Trade and Investment Partnership (TTIP) being but the latest examples; the politico-legal attack on the unions; the encouragement of large-scale immigration in both the US and Europe that helped to undermine the bargaining power of the domestic workforce; and the failure to retrain displaced workers in any meaningful way.

As Thomas Piketty has shown, in the absence of countervailing pressures, capitalism naturally gravitates towards increasing inequality. In the period between 1945 and the late 70s, Cold War competition was arguably the biggest such constraint. Since the collapse of the Soviet Union, there have been none. As the popular backlash grows increasingly irresistible, however, such a winner-takes-all regime becomes politically unsustainable.

Large sections of the population in both the US and the UK are now in revolt against their lot, as graphically illustrated by the support for Trump and Sanders in the US and the Brexit vote in the UK. This popular revolt is often described, in a somewhat denigratory and dismissive fashion, as populism. Or, as Francis Fukuyama writes in a recent excellent essay in Foreign Affairs: “‘Populism’ is the label that political elites attach to policies supported by ordinary citizens that they don’t like.” Populism is a movement against the status quo. It represents the beginnings of something new, though it is generally much clearer about what it is against than what it is for. It can be progressive or reactionary, but more usually both.

Brexit is a classic example of such populism. It has overturned a fundamental cornerstone of UK policy since the early 1970s. Though ostensibly about Europe, it was in fact about much more: a cri de coeur from those who feel they have lost out and been left behind, whose living standards have stagnated or worse since the 1980s, who feel dislocated by large-scale immigration over which they have no control and who face an increasingly insecure and casualised labour market. Their revolt has paralysed the governing elite, already claimed one prime minister, and left the latest one fumbling around in the dark looking for divine inspiration.


Brexit was the marker of a working-class revolt. Photograph: Alamy

The wave of populism marks the return of class as a central agency in politics, both in the UK and the US. This is particularly remarkable in the US. For many decades, the idea of the “working class” was marginal to American political discourse. Most Americans described themselves as middle class, a reflection of the aspirational pulse at the heart of American society. According to a Gallup poll, in 2000 only 33% of Americans called themselves working class; by 2015 the figure was 48%, almost half the population.

Brexit, too, was primarily a working-class revolt. Hitherto, on both sides of the Atlantic, the agency of class has been in retreat in the face of the emergence of a new range of identities and issues from gender and race to sexual orientation and the environment. The return of class, because of its sheer reach, has the potential, like no other issue, to redefine the political landscape.


The working class belongs to no one: its orientation, far from predetermined, is a function of politics

The re-emergence of class should not be confused with the labour movement. They are not synonymous: this is obvious in the US and increasingly the case in the UK. Indeed, over the last half-century, there has been a growing separation between the two in Britain. The re-emergence of the working class as a political voice in Britain, most notably in the Brexit vote, can best be described as an inchoate expression of resentment and protest, with only a very weak sense of belonging to the labour movement.

Indeed, Ukip has been as important – in the form of immigration and Europe – in shaping its current attitudes as the Labour party. In the United States, both Trump and Sanders have given expression to the working-class revolt, the latter almost as much as the former. The working class belongs to no one: its orientation, far from predetermined, as the left liked to think, is a function of politics.

The neoliberal era is being undermined from two directions. First, if its record of economic growth has never been particularly strong, it is now dismal. Europe is barely larger than it was on the eve of the financial crisis in 2007; the United States has done better but even its growth has been anaemic. Economists such as Larry Summers believe that the prospect for the future is most likely one ofsecular stagnation.

Worse, because the recovery has been so weak and fragile, there is a widespread belief that another financial crisis may well beckon. In other words, the neoliberal era has delivered the west back into the kind of crisis-ridden world that we last experienced in the 1930s. With this background, it is hardly surprising that a majority in the west now believe their children will be worse off than they were. Second, those who have lost out in the neoliberal era are no longer prepared to acquiesce in their fate – they are increasingly in open revolt. We are witnessing the end of the neoliberal era. It is not dead, but it is in its early death throes, just as the social-democratic era was during the 1970s.

A sure sign of the declining influence of neoliberalism is the rising chorus of intellectual voices raised against it. From the mid-70s through the 80s, the economic debate was increasingly dominated by monetarists and free marketeers. But since the western financial crisis, the centre of gravity of the intellectual debate has shifted profoundly. This is most obvious in the United States, with economists such as Joseph Stiglitz, Paul Krugman, Dani Rodrik and Jeffrey Sachs becoming increasingly influential. Thomas Piketty’s Capital in the Twenty-First Century has been a massive seller. His work and that of Tony Atkinson and Angus Deaton have pushed the question of the inequality to the top of the political agenda. In the UK, Ha-Joon Chang, for long isolated within the economics profession, has gained a following far greater than those who think economics is a branch of mathematics.


‘Virtually no one foresaw the triumph of Jeremy Corbyn’, pictured at rally in north London last week. Photograph: Daniel Leal-Olivas/AFP/Getty Images

Meanwhile, some of those who were previously strong advocates of a neoliberal approach, such as Larry Summers and the Financial Times’s Martin Wolf, have become extremely critical. The wind is in the sails of the critics of neoliberalism; the neoliberals and monetarists are in retreat. In the UK, the media and political worlds are well behind the curve. Few recognise that we are at the end of an era. Old attitudes and assumptions still predominate, whether on the BBC’s Todayprogramme, in the rightwing press or the parliamentary Labour party.

Following Ed Miliband’s resignation as Labour leader, virtually no one foresaw the triumph of Jeremy Corbyn in the subsequent leadership election. The assumption had been more of the same, a Blairite or a halfway house like Miliband, certainly not anyone like Corbyn. But the zeitgeist had changed. The membership, especially the young who had joined the party on an unprecedented scale, wanted a complete break with New Labour. One of the reasons why the left has failed to emerge as the leader of the new mood of working-class disillusionment is that most social democratic parties became, in varying degrees, disciples of neoliberalism and uber-globalisation. The most extreme forms of this phenomenon were New Labour and the Democrats, who in the late 90s and 00s became its advance guard, personified by Tony Blair and Bill Clinton, triangulation and the third way.

But as David Marquand observed in a review for the New Statesman, what is the point of a social democratic party if it doesn’t represent the less fortunate, the underprivileged and the losers? New Labour deserted those who needed them, who historically they were supposed to represent. Is it surprising that large sections have now deserted the party who deserted them? Blair, in his reincarnation as a money-obsessed consultant to a shady bunch of presidents and dictators, is a fitting testament to the demise of New Labour.

The rival contenders – Burnham, Cooper and Kendall – represented continuity. They were swept away by Corbyn, who won nearly 60% of the votes. New Labour was over, as dead as Monty Python’s parrot. Few grasped the meaning of what had happened. A Guardian leader welcomed the surge in membership and then, lo and behold, urged support for Yvette Cooper, the very antithesis of the reason for the enthusiasm. The PLP refused to accept the result and ever since has tried might and main to remove Corbyn.

Just as the Labour party took far too long to come to terms with the rise of Thatcherism and the birth of a new era at the end of the 70s, now it could not grasp that the Thatcherite paradigm, which they eventually came to embrace in the form of New Labour, had finally run its course. Labour, like everyone else, is obliged to think anew. The membership in their antipathy to New Labour turned to someone who had never accepted the latter, who was the polar opposite in almost every respect of Blair, and embodying an authenticity and decency which Blair patently did not.

Corbyn is not a product of the new times, he is a throwback to the late 70s and early 80s. That is both his strength and also his weakness. He is uncontaminated by the New Labour legacy because he has never accepted it. But nor, it would seem, does he understand the nature of the new era. The danger is that he is possessed of feet of clay in what is a highly fluid and unpredictable political environment, devoid of any certainties of almost any kind, in which Labour finds itself dangerously divided and weakened.

Labour may be in intensive care, but the condition of the Conservatives is not a great deal better. David Cameron was guilty of a huge and irresponsible miscalculation over Brexit. He was forced to resign in the most ignominious of circumstances. The party is hopelessly divided. It has no idea in which direction to move after Brexit. The Brexiters painted an optimistic picture of turning away from the declining European market and embracing the expanding markets of the world, albeit barely mentioning by name which countries it had in mind. It looks as if the new prime minister may have an anachronistic hostility towards China and a willingness to undo the good work of George Osborne. If the government turns its back on China, by far the fastest growing market in the world, where are they going to turn?

Brexit has left the country fragmented and deeply divided, with the very real prospect that Scotland might choose independence. Meanwhile, the Conservatives seem to have little understanding that the neoliberal era is in its death throes.
‘Put America first’: Donald Trump in Cleveland last month. Photograph: Joe Raedle/Getty Images

Dramatic as events have been in the UK, they cannot compare with those in the United States. Almost from nowhere, Donald Trump rose to capture the Republican nomination and confound virtually all the pundits and not least his own party. His message was straightforwardly anti-globalisation. He believes that the interests of the working class have been sacrificed in favour of the big corporations that have been encouraged to invest around the world and thereby deprive American workers of their jobs. Further, he argues that large-scale immigration has weakened the bargaining power of American workers and served to lower their wages.

He proposes that US corporations should be required to invest their cash reserves in the US. He believes that the North American Free Trade Agreement (Nafta) has had the effect of exporting American jobs to Mexico. On similar grounds, he is opposed to the TPP and the TTIP. And he also accuses China of stealing American jobs, threatening to impose a 45% tariff on Chinese imports.

To globalisation Trump counterposes economic nationalism: “Put America first”. His appeal, above all, is to the white working class who, until Trump’s (and Bernie Sander’s) arrival on the political scene, had been ignored and largely unrepresented since the 1980s. Given that their wages have been falling for most of the last 40 years, it is extraordinary how their interests have been neglected by the political class. Increasingly, they have voted Republican, but the Republicans have long been captured by the super-rich and Wall Street, whose interests, as hyper-globalisers, have run directly counter to those of the white working class. With the arrival of Trump they finally found a representative: they won Trump the Republican nomination.

The economic nationalist argument has also been vigorously pursued by Bernie Sanders, who ran Hillary Clinton extremely close for the Democratic nomination and would probably have won but for more than 700 so-called super-delegates, who were effectively chosen by the Democratic machine and overwhelmingly supported Clinton. As in the case of the Republicans, the Democrats have long supported a neoliberal, pro-globalisation strategy, notwithstanding the concerns of its trade union base. Both the Republicans and the Democrats now find themselves deeply polarised between the pro- and anti-globalisers, an entirely new development not witnessed since the shift towards neoliberalism under Reagan almost 40 years ago.

Another plank of Trump’s nationalist appeal – “Make America great again” – is his position on foreign policy. He believes that America’s pursuit of great power status has squandered the nation’s resources. He argues that the country’s alliance system is unfair, with America bearing most of the cost and its allies contributing far too little. He points to Japan and South Korea, and Nato’s European members as prime examples.He seeks to rebalance these relationships and, failing that, to exit from them.

As a country in decline, he argues that America can no longer afford to carry this kind of financial burden. Rather than putting the world to rights, he believes the money should be invested at home, pointing to the dilapidated state of America’s infrastructure. Trump’s position represents a major critique of America as the world’s hegemon. His arguments mark a radical break with the neoliberal, hyper-globalisation ideology that has reigned since the early 1980s and with the foreign policy orthodoxy of most of the postwar period. These arguments must be taken seriously. They should not be lightly dismissed just because of their authorship. But Trump is no man of the left. He is a populist of the right. He has launched a racist and xenophobic attack on Muslims and on Mexicans. Trump’s appeal is to a white working class that feels it has been cheated by the big corporations, undermined by Hispanic immigration, and often resentful towards African-Americans who for long too many have viewed as their inferior.

A Trump America would mark a descent into authoritarianism characterised by abuse, scapegoating, discrimination, racism, arbitrariness and violence; America would become a deeply polarised and divided society. His threat to impose 45% tariffs on China, if implemented, would certainly provoke retaliation by the Chinese and herald the beginnings of a new era of protectionism.

Trump may well lose the presidential election just as Sanders failed in his bid for the Democrat nomination. But this does not mean that the forces opposed to hyper-globalisation – unrestricted immigration, TPP and TTIP, the free movement of capital and much else – will have lost the argument and are set to decline. In little more than 12 months, Trump and Sanders have transformed the nature and terms of the argument. Far from being on the wane, the arguments of the critics of hyper-globalisation are steadily gaining ground. Roughly two-thirds of Americans agree that “we should not think so much in international terms but concentrate more on our own national problems”. And, above all else, what will continue to drive opposition to the hyper-globalisers is inequality.

Wednesday, 29 June 2016

Brexit is a disaster, but we can build on the ruins

 
A voter leaves a polling station at the Elim Pentecostal church in Merthyr Tydfil, south Wales. Photograph: Matthew Horwood/Getty Images


GeorgeMonbiot
 in The Guardian


Let’s sack the electorate and appoint a new one: this is the demand made by MPs, lawyers and the 4 million people who have signed the petition calling for a second referendum. It’s a cry of pain, and therefore understandable, but it’s also bad politics and bad democracy. Reduced to its essence, it amounts to graduates telling nongraduates: “We reject your democratic choice.”

Were this vote to be annulled (it won’t be), the result would be a full-scale class and culture war, riots and perhaps worse, pitching middle-class progressives against those on whose behalf they have claimed to speak, and permanently alienating people who have spent their lives feeling voiceless and powerless.

Yes, the Brexit vote has empowered the most gruesome collection of schemers, misfits, liars, extremists and puppets that British politics has produced in the modern era. It threatens to invoke a new age of demagoguery, a threat sharpened by the thought that if this can happen, so can Donald Trump.

It has provoked a resurgence of racism and an economic crisis whose dimensions remain unknown. It jeopardises the living world, the NHS, peace in Ireland and the rest of the European Union. It promotes what the billionaire Peter Hargreaves gleefully anticipated as “fantastic insecurity”.

But we’re stuck with it. There isn’t another option, unless you favour the years of limbo and chaos that would ensue from a continued failure to trigger article 50. It’s not just that we have no choice but to accept the result; we should embrace it and make of it what we can.

It’s not as if the system that’s now crashing around us was functioning. The vote could be seen as a self-inflicted wound, or it could be seen as the eruption of an internal wound inflicted over many years by an economic oligarchy on the poor and the forgotten. The bogus theories on which our politics and economics are founded were going to collide with reality one day. The only questions were how and when.

Yes, the Brexit campaign was led by a political elite, funded by an economic elite and fuelled by a media elite. Yes, popular anger was channelled towards undeserving targets – migrants.

But the vote was also a howl of rage against exclusion, alienation and remote authority. That is why the slogan “take back control” resonated. If the left can’t work with this, what are we for?

So here is where we find ourselves. The economic system is not working, except for the likes of Philip Green. Neoliberalism has not delivered the meritocratic nirvana its theorists promised, but a rentiers’ paradise, offering staggering returns to whoever grabs the castle first while leaving productive workers on the wrong side of the moat.

The age of enterprise has become the age of unearned income, the age of the market the age of market failure, the age of opportunity a steel cage of zero-hours contracts, precarity and surveillance.

The political system is not working. Whoever you vote for, the same people win, because where power claims to be is not where power is.

Parliaments and councils embody paralysed force, gesture without motion, as the real decisions are taken elsewhere: by the money, for the money. Governments have actively conspired in this shift, negotiating fake trade treaties behind their voters’ backs to prevent democracy from controlling corporate capital.

Unreformed political funding ensures that parties have to listen to the rustle of notes before the bustle of votes. In Britain these problems are compounded by an electoral system that ensures most votes don’t count. This is why a referendum is almost the only means by which people can be heard, and why attempting to override it is a terrible idea.

Culture is not working. A worldview that insists both people and place are fungible is inherently hostile to the need for belonging. For years now we have been told that we do not belong, that we should shift out without complaint while others are shifted in to take our place.

When the peculiarities of community and place are swept away by the tides of capital, all that’s left is a globalised shopping culture, in which we engage with glazed passivity. Man was born free, and he is everywhere in chainstores.

In all these crises are opportunities – opportunities to reject, connect and erect, to build from these ruins a system that works for the people of this country rather than for an offshore elite that preys on insecurity.

If it is true that Britain will have to renegotiate its trade treaties, is this not the best chance we’ve had in decades to contain corporate power – of insisting that companies that operate here must offer proper contracts, share their profits, cut their emissions and pay their taxes? Is it not a chance to regain control of the public services slipping from our grasp?

How will politics in this sclerotic nation change without a maelstrom? In this chaos we can, if we are quick and clever, find a chance to strike a new contract: proportional representation, real devolution and a radical reform of campaign finance to ensure that millionaires can never again own our politics.

Remote authority has been rejected, so let’s use this moment to root our politics in a common celebration of place, to fight the epidemic of loneliness and rekindle common purpose, transcending the tensions between recent and less recent migrants (which means everyone else). In doing so, we might find a language in which liberal graduates can talk with the alienated people of Britain, rather than at them.

But most importantly, let’s address the task that the left and the centre have catastrophically neglected: developing a political and economic philosophy fit for the 21st century, rather than repeatedly microwaving the leftovers of the 20th (neoliberalism and Keynesianism). If the history of the last 80 years tells us anything, it’s that little changes without a new and ferocious framework of thought.
So yes, despair and rage and curse at what ha
s happened: there are reasons enough to do so. But then raise your eyes to where hope lies.

Tuesday, 28 June 2016

Brexit - An Alternative Narrative

 John Pilger in The Hindu

The majority vote by Britons to leave the European Union was an act of raw democracy. Millions of ordinary people refused to be bullied, intimidated and dismissed with open contempt by their presumed betters in the major parties, the leaders of the business and banking oligarchy and the media.

This was, in great part, a vote by those angered and demoralised by the sheer arrogance of the apologists for the “remain” campaign and the dismemberment of a socially just civil life in Britain. The last bastion of the historic reforms of 1945, the National Health Service, has been so subverted by Tory and Labour-supported privateers it is fighting for its life.


Nothing but blackmail

A forewarning came when the Treasurer, George Osborne, the embodiment of both Britain’s ancien regime and the banking mafia in Europe, threatened to cut £30 billion from public services if people voted the wrong way; it was blackmail on a shocking scale.
 

Immigration was exploited in the campaign with consummate cynicism, not only by populist politicians from the lunar right, but by Labour politicians drawing on their own venerable tradition of promoting and nurturing racism, a symptom of corruption not at the bottom but at the top. The reason millions of refugees have fled the Middle East — first Iraq, now Syria — are the invasions and imperial mayhem of Britain, the United States, France, the European Union and NATO. Before that, there was the wilful destruction of Yugoslavia. Before that, there was the theft of Palestine and the imposition of Israel.

The pith helmets may have long gone, but the blood has never dried. A nineteenth century contempt for countries and peoples, depending on their degree of colonial usefulness, remains a centrepiece of modern “globalisation”, with its perverse socialism for the rich and capitalism for the poor: its freedom for capital and denial of freedom to labour; its perfidious politicians and politicised civil servants. All this has now come home to Europe, enriching the likes of Tony Blair and impoverishing and disempowering millions. On 23 June, the British said no more.

The London class

The most effective propagandists of the “European ideal” have not been the far right, but an insufferably patrician class for whom metropolitan London is the United Kingdom. Its leading members see themselves as liberal, enlightened, cultivated tribunes of the 21st century zeitgeist, even “cool”. What they really are is a bourgeoisie with insatiable consumerist tastes and ancient instincts of their own superiority. In their house paper, the Guardian, they have gloated, day after day, at those who would even consider the EU profoundly undemocratic, a source of social injustice and a virulent extremism known as “neoliberalism”.

The aim of this extremism is to install a permanent, capitalist theocracy that ensures a two-thirds society, with the majority divided and indebted, managed by a corporate class, and a permanent working poor. In Britain today, 63 per cent of poor children grow up in families where one member is working. For them, the trap has closed. More than 600,000 residents of Britain’s second city, Greater Manchester, are, reports a study, “experiencing the effects of extreme poverty” and 1.6 million are slipping into penury.

Little of this social catastrophe is acknowledged in the bourgeois controlled media, notably the Oxbridge dominated BBC. During the referendum campaign, almost no insightful analysis was allowed to intrude upon the clichéd hysteria about “leaving Europe”, as if Britain was about to be towed in hostile currents somewhere north of Iceland.

On the morning after the vote, a BBC radio reporter welcomed politicians to his studio as old chums. “Well,” he said to “Lord” Peter Mandelson, the disgraced architect of Blairism, “why do these people want it so badly?” The “these people” are the majority of Britons.

The wealthy war criminal Tony Blair remains a hero of the Mandelson “European” class, though few will say so these days. The Guardian once described Mr. Blair as “mystical” and has been true to his “project” of rapacious war. The day after the vote, the columnist Martin Kettle offered a Brechtian solution to the misuse of democracy by the masses. “Now surely we can agree referendums are bad for Britain”, said the headline over his full-page piece. The “we” was unexplained but understood — just as “these people” is understood. “The referendum has conferred less legitimacy on politics, not more,” wrote Mr. Kettle. “…the verdict on referendums should be a ruthless one. Never again.”

The kind of ruthlessness Mr. Kettle longs for is found in Greece, a country now airbrushed. There, they had a referendum and the result was ignored. Like the Labour Party in Britain, the leaders of the Syriza government in Athens are the products of an affluent, highly privileged, educated middle class, groomed in the fakery and political treachery of post-modernism. The Greek people courageously used the referendum to demand their government sought “better terms” with a venal status quo in Brussels that was crushing the life out of their country. They were betrayed, as the British would have been betrayed.

Perpetual forgetfulness


On Friday, the Labour Party leader, Jeremy Corbyn, was asked by the BBC if he would pay tribute to the departed Mr. Cameron, his comrade in the “remain” campaign. Mr. Corbyn fulsomely praised Mr. Cameron’s “dignity” and noted his backing for gay marriage and his apology to the Irish families of the dead of Bloody Sunday. He said nothing about Mr. Cameron’s divisiveness, his brutal austerity policies, his lies about “protecting” the Health Service. Neither did he remind people of the war mongering of the Cameron government: the dispatch of British special forces to Libya and British bomb aimers to Saudi Arabia and, above all, the beckoning of world war three.

In the week of the referendum vote, no British politician and, to my knowledge, no journalist referred to Vladimir Putin’s speech in St. Petersburg commemorating the seventy-fifth anniversary of Nazi Germany’s invasion of the Soviet Union on 22 June, 1941. The Soviet victory — at a cost of 27 million Soviet lives and the majority of all German forces — won the Second World War.

Mr. Putin likened the current frenzied build up of NATO troops and war material on Russia’s western borders to the Third Reich’s Operation Barbarossa. NATO’s exercises in Poland were the biggest since the Nazi invasion; Operation Anaconda had simulated an attack on Russia, presumably with nuclear weapons. On the eve of the referendum, the quisling secretary-general of NATO, Jens Stoltenberg, warned Britons they would be endangering “peace and security” if they voted to leave the EU. The millions who ignored him and Mr. Cameron, Mr. Osborne, Mr. Corbyn, Mr. Obama and the man who runs the Bank of England may, just may, have struck a blow for real peace and democracy in Europe.

Friday, 15 April 2016

Neoliberalism – the ideology at the root of all our problems

Financial meltdown, environmental disaster and even the rise of Donald Trump – neoliberalism has played its part in them all. Why has the left failed to come up with an alternative?


 
‘No alternative’ … Ronald Reagan and Margaret Thatcher at the White House. Photograph: Rex Features


Imagine if the people of the Soviet Union had never heard of communism. The ideology that dominates our lives has, for most of us, no name. Mention it in conversation and you’ll be rewarded with a shrug. Even if your listeners have heard the term before, they will struggle to define it. Neoliberalism: do you know what it is?

Its anonymity is both a symptom and cause of its power. It has played a major role in a remarkable variety of crises: the financial meltdown of 2007‑8, the offshoring of wealth and power, of which the Panama Papers offer us merely a glimpse, the slow collapse of public health and education, resurgent child poverty, the epidemic of loneliness, the collapse of ecosystems, the rise of Donald Trump. But we respond to these crises as if they emerge in isolation, apparently unaware that they have all been either catalysed or exacerbated by the same coherent philosophy; a philosophy that has – or had – a name. What greater power can there be than to operate namelessly?



So pervasive has neoliberalism become that we seldom even recognise it as an ideology. We appear to accept the proposition that this utopian, millenarian faith describes a neutral force; a kind of biological law, like Darwin’s theory of evolution. But the philosophy arose as a conscious attempt to reshape human life and shift the locus of power.

Neoliberalism sees competition as the defining characteristic of human relations. It redefines citizens as consumers, whose democratic choices are best exercised by buying and selling, a process that rewards merit and punishes inefficiency. It maintains that “the market” delivers benefits that could never be achieved by planning.

Attempts to limit competition are treated as inimical to liberty. Tax and regulation should be minimised, public services should be privatised. The organisation of labour and collective bargaining by trade unions are portrayed as market distortions that impede the formation of a natural hierarchy of winners and losers. Inequality is recast as virtuous: a reward for utility and a generator of wealth, which trickles down to enrich everyone. Efforts to create a more equal society are both counterproductive and morally corrosive. The market ensures that everyone gets what they deserve.

We internalise and reproduce its creeds. The rich persuade themselves that they acquired their wealth through merit, ignoring the advantages – such as education, inheritance and class – that may have helped to secure it. The poor begin to blame themselves for their failures, even when they can do little to change their circumstances.

Never mind structural unemployment: if you don’t have a job it’s because you are unenterprising. Never mind the impossible costs of housing: if your credit card is maxed out, you’re feckless and improvident. Never mind that your children no longer have a school playing field: if they get fat, it’s your fault. In a world governed by competition, those who fall behind become defined and self-defined as losers.

 Among the results, as Paul Verhaeghe documents in his book What About Me? are epidemics of self-harm, eating disorders, depression, loneliness, performance anxiety and social phobia. Perhaps it’s unsurprising that Britain, in which neoliberal ideology has been most rigorously applied, is the loneliness capital of Europe. We are all neoliberals now.

***

The term neoliberalism was coined at a meeting in Paris in 1938. Among the delegates were two men who came to define the ideology, Ludwig von Mises and Friedrich Hayek. Both exiles from Austria, they saw social democracy, exemplified by Franklin Roosevelt’s New Deal and the gradual development of Britain’s welfare state, as manifestations of a collectivism that occupied the same spectrum as nazism and communism.

In The Road to Serfdom, published in 1944, Hayek argued that government planning, by crushing individualism, would lead inexorably to totalitarian control. Like Mises’s book Bureaucracy, The Road to Serfdom was widely read. It came to the attention of some very wealthy people, who saw in the philosophy an opportunity to free themselves from regulation and tax. When, in 1947, Hayek founded the first organisation that would spread the doctrine of neoliberalism – the Mont Pelerin Society – it was supported financially by millionaires and their foundations.

With their help, he began to create what Daniel Stedman Jones describes inMasters of the Universe as “a kind of neoliberal international”: a transatlantic network of academics, businessmen, journalists and activists. The movement’s rich backers funded a series of thinktanks which would refine and promote the ideology. Among them were the American Enterprise Institute, the Heritage Foundation, the Cato Institute, the Institute of Economic Affairs, the Centre for Policy Studies and the Adam Smith Institute. They also financed academic positions and departments, particularly at the universities of Chicago and Virginia.

As it evolved, neoliberalism became more strident. Hayek’s view that governments should regulate competition to prevent monopolies from forming gave way – among American apostles such as Milton Friedman – to the belief that monopoly power could be seen as a reward for efficiency.

Something else happened during this transition: the movement lost its name. In 1951, Friedman was happy to describe himself as a neoliberal. But soon after that, the term began to disappear. Stranger still, even as the ideology became crisper and the movement more coherent, the lost name was not replaced by any common alternative.

At first, despite its lavish funding, neoliberalism remained at the margins. The postwar consensus was almost universal: John Maynard Keynes’s economic prescriptions were widely applied, full employment and the relief of poverty were common goals in the US and much of western Europe, top rates of tax were high and governments sought social outcomes without embarrassment, developing new public services and safety nets.

But in the 1970s, when Keynesian policies began to fall apart and economic crises struck on both sides of the Atlantic, neoliberal ideas began to enter the mainstream. As Friedman remarked, “when the time came that you had to change ... there was an alternative ready there to be picked up”. With the help of sympathetic journalists and political advisers, elements of neoliberalism, especially its prescriptions for monetary policy, were adopted by Jimmy Carter’s administration in the US and Jim Callaghan’s government in Britain.

After Margaret Thatcher and Ronald Reagan took power, the rest of the package soon followed: massive tax cuts for the rich, the crushing of trade unions, deregulation, privatisation, outsourcing and competition in public services. Through the IMF, the World Bank, the Maastricht treaty and the World Trade Organisation, neoliberal policies were imposed – often without democratic consent – on much of the world. Most remarkable was its adoption among parties that once belonged to the left: Labour and the Democrats, for example. As Stedman Jones notes, “it is hard to think of another utopia to have been as fully realised.”

***

It may seem strange that a doctrine promising choice and freedom should have been promoted with the slogan “there is no alternative”. But, as Hayek remarked on a visit to Pinochet’s Chile – one of the first nations in which the programme was comprehensively applied – “my personal preference leans toward a liberal dictatorship rather than toward a democratic government devoid of liberalism”. The freedom that neoliberalism offers, which sounds so beguiling when expressed in general terms, turns out to mean freedom for the pike, not for the minnows.

Freedom from trade unions and collective bargaining means the freedom to suppress wages. Freedom from regulation means the freedom to poison rivers, endanger workers, charge iniquitous rates of interest and design exotic financial instruments. Freedom from tax means freedom from the distribution of wealth that lifts people out of poverty.


Naomi Klein documented that neoliberals advocated the use of crises to impose unpopular policies while people were distracted. Photograph: Anya Chibis for the Guardian

As Naomi Klein documents in The Shock Doctrine, neoliberal theorists advocated the use of crises to impose unpopular policies while people were distracted: for example, in the aftermath of Pinochet’s coup, the Iraq war and Hurricane Katrina, which Friedman described as “an opportunity to radically reform the educational system” in New Orleans.

Where neoliberal policies cannot be imposed domestically, they are imposed internationally, through trade treaties incorporating “investor-state dispute settlement”: offshore tribunals in which corporations can press for the removal of social and environmental protections. When parliaments have voted to restrict sales of cigarettes, protect water supplies from mining companies, freeze energy bills or prevent pharmaceutical firms from ripping off the state, corporations have sued, often successfully. Democracy is reduced to theatre.

Another paradox of neoliberalism is that universal competition relies upon universal quantification and comparison. The result is that workers, job-seekers and public services of every kind are subject to a pettifogging, stifling regime of assessment and monitoring, designed to identify the winners and punish the losers. The doctrine that Von Mises proposed would free us from the bureaucratic nightmare of central planning has instead created one.

Neoliberalism was not conceived as a self-serving racket, but it rapidly became one. Economic growth has been markedly slower in the neoliberal era (since 1980 in Britain and the US) than it was in the preceding decades; but not for the very rich. Inequality in the distribution of both income and wealth, after 60 years of decline, rose rapidly in this era, due to the smashing of trade unions, tax reductions, rising rents, privatisation and deregulation.

The privatisation or marketisation of public services such as energy, water, trains, health, education, roads and prisons has enabled corporations to set up tollbooths in front of essential assets and charge rent, either to citizens or to government, for their use. Rent is another term for unearned income. When you pay an inflated price for a train ticket, only part of the fare compensates the operators for the money they spend on fuel, wages, rolling stock and other outlays. The rest reflects the fact that they have you over a barrel.


  In Mexico, Carlos Slim was granted control of almost all phone services and soon became the world’s richest man. Photograph: Henry Romero/Reuters

Those who own and run the UK’s privatised or semi-privatised services make stupendous fortunes by investing little and charging much. In Russia and India, oligarchs acquired state assets through firesales. In Mexico, Carlos Slim was granted control of almost all landline and mobile phone services and soon became the world’s richest man.

Financialisation, as Andrew Sayer notes in Why We Can’t Afford the Rich, has had a similar impact. “Like rent,” he argues, “interest is ... unearned income that accrues without any effort”. As the poor become poorer and the rich become richer, the rich acquire increasing control over another crucial asset: money. Interest payments, overwhelmingly, are a transfer of money from the poor to the rich. As property prices and the withdrawal of state funding load people with debt (think of the switch from student grants to student loans), the banks and their executives clean up.

Sayer argues that the past four decades have been characterised by a transfer of wealth not only from the poor to the rich, but within the ranks of the wealthy: from those who make their money by producing new goods or services to those who make their money by controlling existing assets and harvesting rent, interest or capital gains. Earned income has been supplanted by unearned income.

Neoliberal policies are everywhere beset by market failures. Not only are the banks too big to fail, but so are the corporations now charged with delivering public services. As Tony Judt pointed out in Ill Fares the Land, Hayek forgot that vital national services cannot be allowed to collapse, which means that competition cannot run its course. Business takes the profits, the state keeps the risk.

The greater the failure, the more extreme the ideology becomes. Governments use neoliberal crises as both excuse and opportunity to cut taxes, privatise remaining public services, rip holes in the social safety net, deregulate corporations and re-regulate citizens. The self-hating state now sinks its teeth into every organ of the public sector.

Perhaps the most dangerous impact of neoliberalism is not the economic crises it has caused, but the political crisis. As the domain of the state is reduced, our ability to change the course of our lives through voting also contracts. Instead, neoliberal theory asserts, people can exercise choice through spending. But some have more to spend than others: in the great consumer or shareholder democracy, votes are not equally distributed. The result is a disempowerment of the poor and middle. As parties of the right and former left adopt similar neoliberal policies, disempowerment turns to disenfranchisement. Large numbers of people have been shed from politics.


 Slogans, symbols and sensation … Donald Trump. Photograph: Aaron Josefczyk/Reuters

Chris Hedges remarks that “fascist movements build their base not from the politically active but the politically inactive, the ‘losers’ who feel, often correctly, they have no voice or role to play in the political establishment”. When political debate no longer speaks to us, people become responsive instead to slogans, symbols and sensation. To the admirers of Trump, for example, facts and arguments appear irrelevant.

Judt explained that when the thick mesh of interactions between people and the state has been reduced to nothing but authority and obedience, the only remaining force that binds us is state power. The totalitarianism Hayek feared is more likely to emerge when governments, having lost the moral authority that arises from the delivery of public services, are reduced to “cajoling, threatening and ultimately coercing people to obey them”.

***

Like communism, neoliberalism is the God that failed. But the zombie doctrine staggers on, and one of the reasons is its anonymity. Or rather, a cluster of anonymities.

The invisible doctrine of the invisible hand is promoted by invisible backers. Slowly, very slowly, we have begun to discover the names of a few of them. We find that the Institute of Economic Affairs, which has argued forcefully in the media against the further regulation of the tobacco industry, has been secretly funded by British American Tobacco since 1963. We discover that Charles and David Koch, two of the richest men in the world, founded the institute that set up the Tea Party movement. We find that Charles Koch, in establishing one of his thinktanks, noted that “in order to avoid undesirable criticism, how the organisation is controlled and directed should not be widely advertised”.

The words used by neoliberalism often conceal more than they elucidate. “The market” sounds like a natural system that might bear upon us equally, like gravity or atmospheric pressure. But it is fraught with power relations. What “the market wants” tends to mean what corporations and their bosses want. “Investment”, as Sayer notes, means two quite different things. One is the funding of productive and socially useful activities, the other is the purchase of existing assets to milk them for rent, interest, dividends and capital gains. Using the same word for different activities “camouflages the sources of wealth”, leading us to confuse wealth extraction with wealth creation.

A century ago, the nouveau riche were disparaged by those who had inherited their money. Entrepreneurs sought social acceptance by passing themselves off as rentiers. Today, the relationship has been reversed: the rentiers and inheritors style themselves entre preneurs. They claim to have earned their unearned income.

These anonymities and confusions mesh with the namelessness and placelessness of modern capitalism: the franchise model which ensures that workers do not know for whom they toil; the companies registered through a network of offshore secrecy regimes so complex that even the police cannot discover the beneficial owners; the tax arrangements that bamboozle governments; the financial products no one understands.

The anonymity of neoliberalism is fiercely guarded. Those who are influenced by Hayek, Mises and Friedman tend to reject the term, maintaining – with some justice – that it is used today only pejoratively. But they offer us no substitute. Some describe themselves as classical liberals or libertarians, but these descriptions are both misleading and curiously self-effacing, as they suggest that there is nothing novel about The Road to Serfdom, Bureaucracy or Friedman’s classic work, Capitalism and Freedom.

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For all that, there is something admirable about the neoliberal project, at least in its early stages. It was a distinctive, innovative philosophy promoted by a coherent network of thinkers and activists with a clear plan of action. It was patient and persistent. The Road to Serfdom became the path to power.

Neoliberalism’s triumph also reflects the failure of the left. When laissez-faire economics led to catastrophe in 1929, Keynes devised a comprehensive economic theory to replace it. When Keynesian demand management hit the buffers in the 70s, there was an alternative ready. But when neoliberalism fell apart in 2008 there was ... nothing. This is why the zombie walks. The left and centre have produced no new general framework of economic thought for 80 years.

Every invocation of Lord Keynes is an admission of failure. To propose Keynesian solutions to the crises of the 21st century is to ignore three obvious problems. It is hard to mobilise people around old ideas; the flaws exposed in the 70s have not gone away; and, most importantly, they have nothing to say about our gravest predicament: the environmental crisis. Keynesianism works by stimulating consumer demand to promote economic growth. Consumer demand and economic growth are the motors of environmental destruction.

What the history of both Keynesianism and neoliberalism show is that it’s not enough to oppose a broken system. A coherent alternative has to be proposed. For Labour, the Democrats and the wider left, the central task should be to develop an economic Apollo programme, a conscious attempt to design a new system, tailored to the demands of the 21st century.

Friday, 24 July 2015

How to think about Islamic State

Pankaj Mishra in The Guardian

Violence has erupted across a broad swath of territory in recent months: wars in Ukraine and the Middle East, suicide bombings in Xinjiang,Nigeria and Turkey, insurgencies from Yemen to Thailand, massacres in Paris, Tunisia and the American south. Future historians may well see such uncoordinated mayhem as commencing the third – and the longest and the strangest – of world wars. Certainly, forces larger and more complex than in the previous two wars are at work; they outrun our capacity to apprehend them, let alone adjust their direction to our benefit.

The early post cold war consensus – that bourgeois democracy has solved the riddle of history, and a global capitalist economy will usher in worldwide prosperity and peace – lies in tatters. But no plausible alternatives of political and economic organisation are in sight. A world organised for the play of individual self-interest looks more and more prone to manic tribalism.

In the lengthening spiral of mutinies from Charleston to central India, the insurgents of Iraq and Syria have monopolised our attention by their swift military victories; their exhibitionistic brutality, especially towards women and minorities; and, most significantly, their brisk seduction of young people from the cities of Europe and the US. Globalisation has everywhere rapidly weakened older forms of authority, in Europe’s social democracies as well as Arab despotisms, and thrown up an array of unpredictable new international actors, from Chinese irredentists and cyberhackers to Syriza and Boko Haram. But the sudden appearance of Islamic State (Isis) in Mosul last year, and the continuing failure to stem its expansion or check its appeal, is the clearest sign of a general perplexity, especially among political elites, who do not seem to know what they are doing and what they are bringing about.






In its capacity to invade and hold a territory the size of England, to inspire me-too zealotry in Pakistan, Gaza, Afghanistan, Nigeria, Libya and Egypt, and to entice thousands of camp followers, Isis represents a quantum leap over all other private and state-sanctioned cults of violence and authoritarianism today. But we are not faring well with the cognitive challenge to define this phenomenon.

For Obama, it is a “terrorist organisation, pure and simple”, which “we will degrade and ultimately destroy”. British politicians, yet again hoping against experience to impress the natives with a show of force, want to bomb the Levant as well as Mesopotamia. A sensationalist and scruple-free press seems eager to collude in their “noble lie”: that a Middle Eastern militia, thriving on the utter ineptitude of its local adversaries, poses an “existential risk” to an island fortress that saw off Napoleon and Hitler. The experts on Islam who opened for business on 9/11 peddle their wares more feverishly, helped by clash-of-civilisation theorists and other intellectual robots of the cold war, which were programmed to think in binaries (us versus them, free versus unfree world, Islam versus the west) and to limit their lexicon to words such as “ideology”, “threat” and “generational struggle”. The rash of pseudo-explanations – Islamism, Islamic extremism, Islamic fundamentalism, Islamic theology, Islamic irrationalism – makes Islam seem more than ever a concept in search of some content whilenormalising hatred and prejudice against more than 1.5 billion people. The abysmal intellectual deficit is summed up, on one hand, by the unremorsefullybellicose figure of Blair, and, on the other, the British government squabbling with the BBC over what to call Isis.

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In the broadest view, Isis seems the product of a catastrophic war – the Anglo-American assault on Iraq. There is no doubt that the ground for it was prepared by this systematic devastation – the murder and displacement of millions, which came after more than a decade of brutalisation by sanctions and embargoes. The dismantling of the Iraqi army, de-Ba’athification and the Anglo-American imprimatur to Shia supremacism provoked the formation in Mesopotamia of al-Qaida, Isis’s precursor. Many local factors converged to make Isis’s emergence possible last year: vengeful Sunnis; reorganised Ba’athists in Iraq; the co-dependence of the west on despotic allies (al-Sisi, al-Maliki) and incoherence over Syria; the cynical manoeuvres of Assad; Turkey’s hubristic neo-Ottomanism, which seems exceeded in its recklessness only by the actions of Saudi Arabia and the Gulf States.

The failure of the Arab Spring has also played a part. Tunisia, its originator, has sent the largest contingent of foreign jihadis to Iraq and Syria. Altogether an estimated 17,000 people, mostly young men, from 90 countries have travelled to Syria and Iraq to offer their services to Isis. Dozens of British women have gone, despite the fact that men of Isis have enslaved and raped girls as young as 10 years old, and stipulated that Muslim girls marry between the ages of nine and 17, and live in total seclusion. “You can easily earn yourself a higher station with God almighty,” a Canadian insurrectionist, Andre Poulin, exhorted in a video used by Isis for online recruitment, “by sacrificing just a small bit of this worldly life.”

It is not hard to see that populous countries such as Pakistan and Indonesia will always have a significant number of takers for well-paid martyrdom. What explains, however, the allure of a caliphate among thousands of residents of relatively prosperous and stable countries, such as the high-achieving London schoolgirls who travelled to Syria this spring?

Isis, the military phenomenon, could conceivably be degraded and destroyed. Or, it could rise further, fall abruptly and then rise again (like al-Qaida, which has been degraded and destroyed several times in recent years). The state can use its immense power to impound passports, shut down websites, and even enforce indoctrination in “British values” in schools. But this is no way to stem what seems a worldwide outbreak of intellectual and moral secessionism.

Isis is only one of its many beneficiaries; demagogues of all kinds have tapped the simmering reservoirs of cynicism and discontent. At the very least, their growing success and influence ought to make us re-examine our basic assumptions of order and continuity since the political and scientific revolutions of the 19th century – our belief that the human goods achieved so far by a fortunate minority can be realised by the ever-growing majority that desires them. We must ask if the millions of young people awakening around the world to their inheritance can realise the modern promise of freedom and prosperity. Or, are they doomed to lurch, like many others in the past, between a sense of inadequacy and fantasies of revenge?

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 Returning to Russia from Europe in 1862, Dostoevsky first began to explore at length the very modern torment of ressentiment that the misogynists of Twittertoday manifest as much as the dupes of Isis. Russian writers from Pushkin onwards had already probed the peculiar psychology of the “superfluous” man in a semi-westernised society: educated into a sense of hope and entitlement, but rendered adrift by his limited circumstances, and exposed to feelings of weakness, inferiority and envy. Russia, trying to catch up with the west, produced many such spiritually unmoored young men who had a quasi-Byronic conception of freedom, further inflated by German idealism, but the most unpromising conditions in which to realise them.

Rudin in Turgenev’s eponymous novel desperately wants to surrender himself “completely, greedily, utterly” to something; he ends up dead on a Parisian barricade in 1848, having sacrificed himself to a cause he doesn’t fully believe in. It was, however, Dostoevsky who saw most acutely how individuals, trained to believe in a lofty notion of personal freedom and sovereignty, and then confronted with a reality that cruelly cancelled it, could break out of paralysing ambivalence into gratuitous murder and paranoid insurgency.

His insight into this fateful gap between the theory and practice of liberal individualism developed during his travels in western Europe – the original site of the greatest social, political and economic transformations in human history, and the exemplar with its ideal of individual freedom for all of humanity. By the mid-19th century, Britain was the paradigmatic modern state and society, with its sights firmly set on industrial prosperity and commercial expansion. Visiting London in 1862, Dostoevsky quickly realised the world-historical import of what he was witnessing. “You become aware of a colossal idea,” he wrote after visiting the International Exhibition, showcase of an all-conquering material culture: “You sense that it would require great and everlasting spiritual denial and fortitude in order not to submit, not to capitulate before the impression, not to bow to what is, and not to deify Baal, that is, not to accept the material world as your ideal.”

However, as Dostoevsky saw it, the cost of such splendour and magnificence was a society dominated by the war of all against all, in which most people were condemned to be losers. In Paris, he caustically noted that liberté existed only for the millionaire. The notion of equality before the law was a “personal insult” to the poor exposed to French justice. As for fraternité, it was another hoax in a society driven by the “individualist, isolationist instinct” and the lust for private property.

Dostoevsky diagnosed the new project of human emancipation through the bewilderment and bitterness of people coming late to the modern world, and hoping to use its evidently successful ideas and methods to their advantage. For these naive latecomers, the gap between the noble ends of individual liberation and the poverty of available means in their barbarous social order was the greatest. The self-loathing clerk in Notes from Underground represents the human being who is excruciatingly aware that free moral choice is impossible in a world increasingly regimented by instrumental reason. He dreams constantly and impotently of revenge against his social superiors. Raskolnikov, the deracinated former law student in Crime and Punishment, is the psychopath of instrumental rationality, who can work up evidently logical reasons to do anything he desires. After murdering an old woman, he derives philosophical validation from the most celebrated nationalist and imperialist of his time, Napoleon: a “true master, to whom everything is permitted”.

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The bloody dramas of political and economic laggards can seem remote from liberal-democratic Britain. The early and decisive winner in the sweepstakes of modern history has guaranteed an admirable measure of security, stability and dignity to many of its citizens. The parochial vision of modern history as essentially a conflict between open society and its enemies (liberal democracy versus nazism, communism and Islam) can feel accurate within the unbreached perimeters of Britain (and the US). It is not untrue to assert that Britain’s innovations and global reach spread the light of reason to the remotest corners of the Earth. Britain made the modern world in the sense that the forces it helped to originate – technology, economic organisation and science – formed a maelstrom that is still overwhelming millions of lives.

But this is also why Britain’s achievements cannot be seen in isolation from their ambiguous consequences elsewhere. Blaming Islamic theology, or fixating on the repellent rhetoric of Isis, may be indispensable in achieving moral self-entrancement, and toughening up convictions of superiority: we, liberal, democratic and rational, are not at all like these savages. But these spine-stiffening exercises can’t obscure the fact that Britain’s history has long been continuous with the world it made, which includes its ostensible enemies in Europe and beyond. Regardless of what the “island story” says, the belief systems and institutions Britain initiated – a global market economy, the nation state, utilitarian rationality – first caused a long emergency in Europe, before roiling the older worlds of Asia and Africa.

The recurrent crises explain why a range of figures, from Blake to Gandhi, and Simone Weil to Yukio Mishima, reacted remarkably similarly to the advent of industrial and commercial society, to the unprecedented phenomenon of all that is solid melting into thin air, across Europe, Asia and Africa.

“Spectres reign where no gods are,” Schiller wrote, deploring the atrophying of the “sacral sense” into nationalism and political power. Fear of moral and spiritual diminishment, and social chaos, was also a commonplace of much 19th-century British writing. “The rich have become richer, and the poor have become poorer; and the vessel of the state is driven between the Scylla and Charybdis of anarchy and despotism,” Shelley wrote in 1821, blaming inequality and disorder on the “unmitigated exercise of the calculating faculty”. Coleridge, denouncing “a contemptible democratical oligarchy of glib economists”, asked: “Is the increasing number of wealthy individuals that which ought to be understood by the wealth of the nation?” Dickens did much with Carlyle’s despairing insight into cash payment as the “sole nexus” between human beings. DH Lawrence recoiled fruitfully from “the base forcing of all human energy into a competition of mere acquisition”. Proximity to British arguments helped shape Marx’s vision of a proletariat goaded by the inequities and degradations of industrial capitalism into a revolutionary redemption of human existence.

The actual revolutions and revolts, however, occurred outside Britain, where liberal individualism, the product of a settled society with fixed social structures, seemed to have no answers to the plight of the uprooted masses living in squalor in cities. Its failure first motivated cultural nationalists, socialists, anarchists and revolutionaries across Europe, before seeding many anti-colonial movements in Asia and Africa. In an irony of modern history, which stalks revolutions and revolts to this day, the search for a new moral community has constantly assumed unpredicted and vicious forms. But then the dislocations and traumas caused by industralisation and urbanisation accelerated the growth of ideologies of race and blood in even enlightened western Europe.


A militant Islamist fighter films a military parade in northern Syria celebrating the declaration of an Islamic caliphate. Photograph: Reuters

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“The way of modern culture,” the Austrian writer Franz Grillparzer once lamented, “leads from humanity through nationality to bestiality.” He died too early (1872) to see another landmark en route to barbarism: modern European imperialism, whose humanitarian rhetoric was, like one of its representatives, Conrad’s Kurtz, “hollow at the core”.

In Asia, the usual disruptions of an industrial and commercial system that transcends political frontiers and destroys economic self-sufficiency, enslaving individuals to impersonal forces, were accompanied by a racist imperialism. The early victims and opponents of this ultra-aggressive modernity were local elites who organised their resistance around traditionalist loyalties and fantasies of recapturing a lost golden age – tendencies evident in the Boxer Rebellion in China as well as early 19th-century jihads against British rule in India.



Premodern political chieftains, who were long ago supplanted by western-educated men and women quoting John Stuart Mill and demanding individual rights, do not and cannot exist any more, however “Islamic” their theology may seem. They return today as parody – and there is much that is purely camp about a self-appointed caliph sporting a Rolex and India’s Hindu revivalist prime minister draped in a Savile Row $15,000 suit with personalised pin stripes. The spread of literacy, improved communications, rising populations and urbanisation have transformed the remotest corners of Asia and Africa. The desire for self-expansion through material success fully dominates the extant spiritual ideals of traditional religions and cultures.

Isis desperately tries to reinvent the early ideological antagonism between the imperialistic modern west and its traditionalist enemies. A recent issue of their magazine Dabiq approvingly quotes George W Bush’s us-versus-them exhortation, insisting that there is no “Gray Zone” in the holy war. Craving intellectual and political prestige, the DIY jihadists receive helpful endorsements from the self-proclaimed paladins of the west, such as Michael Gove, Britain’s leading American-style neocon. Responding to the revelation on 17 July of secret British bombing of Syria, Gove asserted that the “need to maintain the strengthand durability of the western alliance in the face of Islamist fundamentalism” can “trump everything”.

Clashing in the night, the ignorant armies of ideologues endow each other’s cherished self-conceptions with the veracity they crave. But their self-flattering oppositions collapse once we recognise that much violence today arises out of a heightened and continuously thwarted desire for convergence and resemblance rather than religious, cultural and theological difference.

The advent of the global economy in the 19th century, and its empowerment of a small island, caused an explosion of mimetic desire from western Europe to Japan. Since then, a sense of impotence and compensatory cultural pride has routinely driven the weak and marginalised to attack those that seem stronger than them while secretly desiring to possess their advantages. Humiliated rage and furtive envy characterise Muslim insurrectionaries and Hindu fanatics today as much as they did the militarist Japanese insisting on their unique spiritual quintessence. It is certainly not some esoteric 13th-century Hadith that makes Isis so eager to adopt the modern west’s technologies of war, revolution and propaganda – especially, as the homicidal dandyism of Jihadi John reveals, its mediatised shock-and-awe violence.

There is nothing remarkable about the fact that the biggest horde of foreign fighters in Iraq and Syria originated in Tunisia, the most westernised of Arab countries. Mass education, economic crisis and unfeeling government have long constituted a fertile soil for the cults of authoritarianism and violence. Powerlessness and deprivation are exacerbated today by the ability, boosted by digital media, to constantly compare your life with the lives of the fortunate (especially women entering the workforce or prominent in the public sphere: a common source of rage for men with siege mentalities worldwide). The quotient of frustration tends to be highest in countries that have a large population of educated young men who have undergone multiple shocks and displacements in their transition to modernity and yet find themselves unable to fulfil the promise of self-empowerment. For many of them the contradiction Dostoevsky noticed between extravagant promise and meagre means has become intolerable.

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The sacral sense – the traditional basis of religion, entailing humility and self-restraint – has atrophied even where the churches, mosques and temples are full. The spectres of power reign incontestably where no gods are. Their triumph makes nonsense of the medieval-modern axis on which jihadis preening on Instagram in Halloween costumes are still reflexively defined. So extensive is the rout of pre-modern spiritual and metaphysical traditions that it is hard to even imagine their resurrection, let alone the restoration, on a necessarily large scale, of a non-instrumental view of human life (and the much-despoiled natural world). But there seem to be no political escape routes, either, out of the grisly cycle of retributive bombing and beheading.

The choice for many people in the early 20th century, as Rosa Luxemburgfamously proclaimed, was between socialism and barbarism. The German thinker spoke as the historical drama of the 19th century – revolution, nationalism, state-building, economic expansion, arms races, imperial aggrandisement – reached a disastrous denouement in the first world war. The choice has seemed less clear in the century since.

The mimic imperialisms of Japan and Germany, two resentful late-modernisers in Britain’s shadow, played out on a catastrophic scale the conflict built into the capitalist order. But socialist states committed to building human societies on co-operation rather than rivalry produced their own grotesqueries, as manifested byStalin and Mao and numerous regimes in the colonised world that sought moral advantage over their western masters by aiming at equality as well as prosperity.

Since 1989, the energies of postcolonial idealism have faded together with socialism as an economic and moral alternative. The unfettered globalisation of capital annexed more parts of the world into a uniform pattern of desire and consumption. The democratic revolution of aspiration De Tocqueville witnessed in the early 19th century swept across the world, sparking longings for wealth, status and power in the most unpromising circumstances. Equality of conditions, in which talent, education and hard work are rewarded by individual mobility, ceased to be an exclusively American illusion after 1989. It proliferated even as structural inequality entrenches itself further.

In the neoliberal fantasy of individualism, everyone was supposed to be an entrepreneur, retraining and repackaging themselves in a dynamic economy, perpetually alert to the latter’s technological revolutions. But capital continually moves across national boundaries in the search for profit, contemptuously sweeping skills and norms made obsolete by technology into the dustbin of history; and defeat and humiliation have become commonplace experiences in the strenuous endeavour of franchising the individual self.

Significantly numerous members of the precariat realise today that there is no such thing as a level playing field. The number of superfluous young people condemned to the anteroom of the modern world, an expanded Calais in its squalor and hopelessness, has grown exponentially in recent decades, especially in Asia and Africa’s youthful societies. The appeal of formal and informal secession – the possibility, broadly, of greater control over your life – has grown from Scotland to Hong Kong, beyond the cunningly separatist elites with multiple citizenship and offshore accounts. More and more people feel the gap between the profligate promises of individual freedom and sovereignty, and the incapacity of their political and economic organisations to realise them.

Even the nation state expressly designed to fulfil those promises – the United States – seethes with angry disillusionment across its class and racial divisions. A sense of victimhood festers among even relatively advantaged white men, as the rancorously popular candidacy of Donald Trump confirms. Elsewhere, the nasty discovery of Atticus Finch as a segregationist compounds the shock of Ferguson and Baltimore. Coming after decades of relentless and now insurmountable inequality, the revelation of long-standing systemic violence against African Americans is challenging some primary national myths and pieties. In a democracy founded by wealthy slave-owners and settler colonialists, and hollowed out by plutocrats, many citizens turn out to have never enjoyed equality of conditions. They raise the question that cuts through decades of liberal evasiveness about the cruelties of a political system intended to facilitate private moneymaking: “how to erect,” as Ta-Nehisi Coates puts it in his searing new book, Between the World and Me, “a democracy independent of cannibalism?”

And yet the obvious moral flaws of capitalism have not made it politically vulnerable. In the west, a common and effective response among regnant elites to unravelling national narratives and loss of legitimacy is fear-mongering among minorities and immigrants – an insidious campaign that continuously feeds on the hostility it provokes. These cosseted beneficiaries of an iniquitous order are also quick to ostracise the stray dissenter among them, as the case of Greece reveals. Chinese, Russian, Turkish and Indian leaders, who are also productively refurbishing their nation-building ideologies, have even less reason to oppose a global economic system that has helped enrich them and their cronies and allies.

Rather, Xi Jinping, Modi, Putin and Erdogan follow in the line of early 19th-century European and Japanese demagogues who responded to the many crises of capitalism by exhorting unity before internal and external threats. European or American-style imperialism is not a feasible option for them yet; they deploy instead, more riskily, jingoistic nationalism and cross-border militarism as a valve for domestic tensions. They have also retrofitted old-style nationalism for their growing populations of uprooted citizens, who harbour yearnings for belonging and community as well as material plenitude. Their self-legitimising narratives are necessarily hybrid: Mao-plus-Confucius, Holy Cow-plus-Smart Cities, Neoliberalism-plus-Islam, Putinism-plus-Orthodox Christianity.



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 ‘Isis mobilises ressentiment into militant rebellion against the status quo’. Photograph: Reuters Photograph: Stringer . / Reuters/REUTERS

Isis, too, offers a postmodern collage rather than a determinate creed. Born in the ruins of two nation states that dissolved in sectarian violence, it vends the fantasy of a morally untainted and transnational caliphate. In actuality, Isis is the canniest of all traders in the flourishing international economy of disaffection: the most resourceful among all those who offer the security of collective identity to isolated and fearful individuals. It promises, along with others who retail racial, national and religious supremacy, to release the anxiety and frustrations of the private life into the violence of the global. Unlike its rivals, however, Isis mobilises ressentiment into militant rebellion against the status quo.

Isis mocks the entrepreneurial age’s imperative to project an appealing personality by posting snuff videos on social media. At the same time, it has a stern bureaucracy devoted to proper sanitation and tax collection. Some members of Isis extol the spiritual nobility of the Prophet and the earliest caliphs. Others confess through their mass rapes, choreographed murders and rational self-justifications a primary fealty to nihilism: that characteristically modern-day and insidiously common doctrine that makes it impossible for modern-day Raskolnikovs to deny themselves anything, and possible to justify anything.

The shapeshifting aspect of Isis is hardly unusual in a world in which “liberals” morph into warmongers, and “conservatives” institute revolutionary free-market “reforms”. Meanwhile, technocrats, while slashing employment and welfare benefits, and immiserating entire societies and generations, propose to bomb refugee boats, and secure unprecedented powers to imprison and snoop.

You can of course continue to insist on the rationality of liberal democracy as against “Islamic irrationalism” while waging infinite wars abroad and assaulting civil liberties at home. Such a conception of liberalism and democracy, however, will not only reveal its inability to offer wise representation to citizens. It will also make freshly relevant the question about intellectual and moral legitimacy raised by TS Eliot at a dark time in 1938, when he asked if “our society, which had always been so assured of its superiority and rectitude, so confident of its unexamined premises” was “assembled round anything more permanent than a congeries of banks, insurance companies and industries, and had it any beliefs more essential than a belief in compound interest and the maintenance of dividends?”

Today, the unmitigated exercise of the calculating faculty looks more indifferent to ordinary lives, and their need for belief and enchantment. The political impasses and economic shocks in our societies, and the irreparably damaged environment, corroborate the bleakest views of 19th-century critics who condemned modern capitalism as a heartless machinery for economic growth, or the enrichment of the few, which works against such fundamentally human aspirations as stability, community and a better future. Isis, among many others, draws its appeal from an incoherence of concepts – “democracy” and “individual rights” among them – with which many still reflexively shore up the ideological defences of a self-evidently dysfunctional system. The contradictions and costs of a tiny minority’s progress, long suppressed by blustery denial and aggressive equivocation, have become visible on a planetary scale. They encourage the suspicion – potentially lethal among the hundreds of millions of young people condemned to being superfluous – that the present order, democratic or authoritarian, is built on force and fraud; they incite a broader and more volatile apocalyptic and nihilistic mood than we have witnessed before. Professional politicians, and their intellectual menials, will no doubt blather on about “Islamic fundamentalism”, the “western alliance” and “full-spectrum response”. Much radical thinking, however, is required if we are to prevent ressentiment from erupting into even bigger conflagrations.