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Wednesday 4 October 2017

Subramanian Swamy on Dharma, Religion and the Indian Constitution


Yashwant Sinha - The BJP will be held to account in 2019

Interview with Karan Thapar


'Demonetisation was a money laundering scheme' - Arun Shourie

‘Reflections on Gandhi’: George Orwell’s assessment of Mahatma Gandhi after his assassination

By George Orwell

Wikimedia Commons



Saints should always be judged guilty until they are proved innocent, but the tests that have to be applied to them are not, of course, the same in all cases. In Gandhi’s case the questions one feels inclined to ask are: to what extent was Gandhi moved by vanity – by the consciousness of himself as a humble, naked old man, sitting on a praying mat and shaking empires by sheer spiritual power – and to what extent did he compromise his own principles by entering politics, which of their nature are inseparable from coercion and fraud?

To give a definite answer one would have to study Gandhi’s acts and writings in immense detail, for his whole life was a sort of pilgrimage in which every act was significant. But this partial autobiography, which ends in the nineteen-twenties, is strong evidence in his favour, all the more because it covers what he would have called the unregenerate part of his life and reminds one that inside the saint, or near-saint, there was a very shrewd, able person who could, if he had chosen, have been a brilliant success as a lawyer, an administrator or perhaps even a businessman.

At about the time when the autobiography first appeared I remember reading its opening chapters in the ill-printed pages of some Indian newspaper. They made a good impression on me, which Gandhi himself at that time did not. The things that one associated with him – home-spun cloth, “soul forces” and vegetarianism – were unappealing, and his medievalist programme was obviously not viable in a backward, starving, over-populated country. It was also apparent that the British were making use of him, or thought they were making use of him. Strictly speaking, as a Nationalist, he was an enemy, but since in every crisis he would exert himself to prevent violence – which, from the British point of view, meant preventing any effective action whatever – he could be regarded as “our man”. In private this was sometimes cynically admitted.

The attitude of the Indian millionaires was similar. Gandhi called upon them to repent, and naturally they preferred him to the Socialists and Communists who, given the chance, would actually have taken their money away. How reliable such calculations are in the long run is doubtful; as Gandhi himself says, “in the end deceivers deceive only themselves”; but at any rate the gentleness with which he was nearly always handled was due partly to the feeling that he was useful. The British Conservatives only became really angry with him when, as in 1942, he was in effect turning his non-violence against a different conqueror.


But I could see even then that the British officials who spoke of him with a mixture of amusement and disapproval also genuinely liked and admired him, after a fashion.


Nobody ever suggested that he was corrupt, or ambitious in any vulgar way, or that anything he did was actuated by fear or malice. In judging a man like Gandhi one seems instinctively to apply high standards, so that some of his virtues have passed almost unnoticed. For instance, it is clear even from the autobiography that his natural physical courage was quite outstanding: the manner of his death was a later illustration of this, for a public man who attached any value to his own skin would have been more adequately guarded.

Again, he seems to have been quite free from that maniacal suspiciousness which, as EM Forster rightly says in A Passage to India, is the besetting Indian vice, as hypocrisy is the British vice. Although no doubt he was shrewd enough in detecting dishonesty, he seems wherever possible to have believed that other people were acting in good faith and had a better nature through which they could be approached. And though he came of a poor middle-class family, started life rather unfavourably, and was probably of unimpressive physical appearance, he was not afflicted by envy or by the feeling of inferiority.

Colour feeling when he first met it in its worst form in South Africa, seems rather to have astonished him. Even when he was fighting what was in effect a colour war, he did not think of people in terms of race or status. The governor of a province, a cotton millionaire, a half-starved Dravidian coolie, a British private soldier were all equally human beings, to be approached in much the same way. It is noticeable that even in the worst possible circumstances, as in South Africa when he was making himself unpopular as the champion of the Indian community, he did not lack European friends.

Written in short lengths for newspaper serialisation, the autobiography is not a literary masterpiece, but it is the more impressive because of the commonplaceness of much of its material. It is well to be reminded that Gandhi started out with the normal ambitions of a young Indian student and only adopted his extremist opinions by degrees and, in some cases, rather unwillingly. 

He was not one of those saints who are marked out by their phenomenal piety from childhood onwards, nor one of the other kind who forsake the world after sensational debaucheries. He makes full confession of the misdeeds of his youth, but in fact there is not much to confess.

As a frontispiece to the book there is a photograph of Gandhi’s possessions at the time of his death. The whole outfit could be purchased for about £5, and Gandhi’s sins, at least his fleshly sins, would make the same sort of appearance if placed all in one heap. A few cigarettes, a few mouthfuls of meat, a few annas pilfered in childhood from the maidservant, two visits to a brothel (on each occasion he got away without “doing anything”), one narrowly escaped lapse with his landlady in Plymouth, one outburst of temper – that is about the whole collection. Almost from childhood onwards he had a deep earnestness, an attitude ethical rather than religious, but, until he was about thirty, no very definite sense of direction.

His first entry into anything describable as public life was made by way of vegetarianism. Underneath his less ordinary qualities one feels all the time the solid middle-class businessmen who were his ancestors. One feels that even after he had abandoned personal ambition he must have been a resourceful, energetic lawyer and a hard-headed political organiser, careful in keeping down expenses, an adroit handler of committees and an indefatigable chaser of subscriptions.

His character was an extraordinarily mixed one, but there was almost nothing in it that you can put your finger on and call bad, and I believe that even Gandhi’s worst enemies would admit that he was an interesting and unusual man who enriched the world simply by being alive . Whether he was also a loveable man, and whether his teachings can have much for those who do not accept the religious beliefs on which they are founded, I have never felt fully certain.


Of late years it has been the fashion to talk about Gandhi as though he were not only sympathetic to the Western Left-wing movement, but were integrally part of it.


Anarchists and pacifists, in particular, have claimed him for their own, noticing only that he was opposed to centralism and State violence and ignoring the other-worldly, anti-humanist tendency of his doctrines. But one should, I think, realise that Gandhi’s teachings cannot be squared with the belief that man is the measure of all things and that our job is to make life worth living on this earth, which is the only earth we have. They make sense only on the assumption that god exists and that the world of solid objects is an illusion to be escaped from.

It is worth considering the disciplines which Gandhi imposed on himself and which – though he might not insist on every one of his followers observing every detail – he considered indispensable if one wanted to serve either god or humanity. First of all, no meat-eating, and if possible no animal food in any form. (Gandhi himself, for the sake of his health, had to compromise on milk, but seems to have felt this to be a backsliding.) No alcohol or tobacco, and no spices or condiments even of a vegetable kind, since food should be taken not for its own sake but solely in order to preserve one’s strength.

Secondly, if possible, no sexual intercourse. If sexual intercourse must happen, then it should be for the sole purpose of begetting children and presumably at long intervals. Gandhi himself, in his middle thirties, took the vow of brahmacharya, which means not only complete chastity but the elimination of sexual desire. This condition, it seems, is difficult to attain without a special diet and frequent fasting. One of the dangers of milk-drinking is that it is apt to arouse sexual desire. And finally – this is the cardinal point – for the seeker after goodness there must be no close friendships and no exclusive loves whatever.


Close friendships, Gandhi says, are dangerous, because “friends react on one another” and through loyalty to a friend one can be led into wrong-doing.


This is unquestionably true. Moreover, if one is to love god, or to love humanity as a whole, one cannot give one’s preference to any individual person. This again is true, and it marks the point at which the humanistic and the religious attitude cease to be reconcilable. To an ordinary human being, love means nothing if it does not mean loving some people more than others.

The autobiography leaves it uncertain whether Gandhi behaved in an inconsiderate way to his wife and children, but at any rate it makes clear that on three occasions he was willing to let his wife or a child die rather than administer the animal food prescribed by the doctor. It is true that the threatened death never actually occurred, and also that Gandhi – with, one gathers, a good deal of moral pressure in the opposite direction – always gave the patient the choice of staying alive at the price of committing a sin: still, if the decision had been solely his own, he would have forbidden the animal food, whatever the risks might be. There must, he says, be some limit to what we will do in order to remain alive, and the limit is well on this side of chicken broth.

This attitude is perhaps a noble one, but, in the sense which – I think – most people would give to the word, it is inhuman. The essence of being human is that one does not seek perfection, that one is sometimes willing to commit sins for the sake of loyalty, that one does not push asceticism to the point where it makes friendly intercourse impossible, and that one is prepared in the end to be defeated and broken up by life, which is the inevitable price of fastening one’s love upon other human individuals. No doubt alcohol, tobacco, and so forth, are things that a saint must avoid, but sainthood is also a thing that human beings must avoid.

There is an obvious retort to this, but one should be wary about making it. In this yogi-ridden age, it is too readily assumed that “non-attachment” is not only better than a full acceptance of earthly life, but that the ordinary man only rejects it because it is too difficult: in other words, that the average human being is a failed saint. It is doubtful whether this is true. Many people genuinely do not wish to be saints, and it is probable that some who achieve or aspire to sainthood have never felt much temptation to be human beings.

If one could follow it to its psychological roots, one would, I believe, find that the main motive for “non-attachment” is a desire to escape from the pain of living, and above all from love, which, sexual or non-sexual, is hard work. But it is not necessary here to argue whether the other-worldly or the humanistic ideal is “higher”. The point is that they are incompatible. One must choose between god and man, and all “radicals” and “progressives”, from the mildest Liberal to the most extreme Anarchist, have in effect chosen man.

Gandhi’s attitude was not that of most Western pacifists. Satyagraha, first evolved in South Africa, was a sort of non-violent warfare, a way of defeating the enemy without hurting him and without feeling or arousing hatred. It entailed such things as civil disobedience, strikes, lying down in front of railway trains, enduring police charges without running away and without hitting back, and the like. Gandhi objected to “passive resistance” as a translation of Satyagraha: in Gujarati, it seems, the word means “firmness in the truth”.

In his early days Gandhi served as a stretcher-bearer on the British side in the Boer War, and he was prepared to do the same again in the war of 1914-18. Even after he had completely abjured violence he was honest enough to see that in war it is usually necessary to take sides. He did not – indeed, since his whole political life centred round a struggle for national independence, he could not – take the sterile and dishonest line of pretending that in every war both sides are exactly the same and it makes no difference who wins. Nor did he, like most Western pacifists, specialise in avoiding awkward questions.

In relation to the late war, one question that every pacifist had a clear obligation to answer was: “What about the Jews? Are you prepared to see them exterminated? If not, how do you propose to save them without resorting to war?” I must say that I have never heard, from any Western pacifist, an honest answer to this question, though I have heard plenty of evasions, usually of the “you’re another” type. But it so happens that Gandhi was asked a somewhat similar question in 1938 and that his answer is on record in Mr Louis Fischer’s Gandhi and Stalin. According to Mr Fischer, Gandhi’s view was that the German Jews ought to commit collective suicide, which “would have aroused the world and the people of Germany to Hitler’s violence.”

After the war he justified himself: the Jews had been killed anyway, and might as well have died significantly. One has the impression that this attitude staggered even so warm an admirer as Mr Fischer, but Gandhi was merely being honest. If you are not prepared to take life, you must often be prepared for lives to be lost in some other way. When, in 1942, he urged non-violent resistance against a Japanese invasion, he was ready to admit that it might cost several million deaths.


At the same time there is reason to think that Gandhi, who after all was born in 1869, did not understand the nature of totalitarianism and saw everything in terms of his own struggle against the British government.


The important point here is not so much that the British treated him forbearingly as that he was always able to command publicity. As can be seen from the phrase quoted above, he believed in “arousing the world”, which is only possible if the world gets a chance to hear what you are doing. It is difficult to see how Gandhi’s methods could be applied in a country where opponents of the regime disappear in the middle of the night and are never heard of again. Without a free press and the right of assembly, it is impossible not merely to appeal to outside opinion, but to bring a mass movement into being, or even to make your intentions known to your adversary.

Is there a Gandhi in Russia at this moment? And if there is, what is he accomplishing? The Russian masses could only practise civil disobedience if the same idea happened to occur to all of them simultaneously, and even then, to judge by the history of the Ukraine famine, it would make no difference. But let it be granted that non-violent resistance can be effective against one’s own government, or against an occupying power: even so, how does one put it into practise internationally?

Gandhi’s various conflicting statements on the late war seem to show that he felt the difficulty of this. Applied to foreign politics, pacifism either stops being pacifist or becomes appeasement. Moreover the assumption, which served Gandhi so well in dealing with individuals, that all human beings are more or less approachable and will respond to a generous gesture, needs to be seriously questioned. It is not necessarily true, for example, when you are dealing with lunatics. Then the question becomes: Who is sane? Was Hitler sane? And is it not possible for one whole culture to be insane by the standards of another? And, so far as one can gauge the feelings of whole nations, is there any apparent connection between a generous deed and a friendly response? Is gratitude a factor in international politics?

These and kindred questions need discussion, and need it urgently, in the few years left to us before somebody presses the button and the rockets begin to fly. It seems doubtful whether civilisation can stand another major war, and it is at least thinkable that the way out lies through non-violence. It is Gandhi’s virtue that he would have been ready to give honest consideration to the kind of question that I have raised above; and, indeed, he probably did discuss most of these questions somewhere or other in his innumerable newspaper articles. One feels of him that there was much he did not understand, but not that there was anything that he was frightened of saying or thinking.


I have never been able to feel much liking for Gandhi, but I do not feel sure that as a political thinker he was wrong in the main, nor do I believe that his life was a failure.


It is curious that when he was assassinated, many of his warmest admirers exclaimed sorrowfully that he had lived just long enough to see his life work in ruins, because India was engaged in a civil war which had always been foreseen as one of the byproducts of the transfer of power. But it was not in trying to smooth down Hindu-Moslem rivalry that Gandhi had spent his life. His main political objective, the peaceful ending of British rule, had after all been attained. As usual the relevant facts cut across one another.

On the other hand, the British did get out of India without fighting, an event which very few observers indeed would have predicted until about a year before it happened. On the other hand, this was done by a Labour government, and it is certain that a Conservative government, especially a government headed by Churchill, would have acted differently. But if, by 1945, there had grown up in Britain a large body of opinion sympathetic to Indian independence, how far was this due to Gandhi’s personal influence? And if, as may happen, India and Britain finally settle down into a decent and friendly relationship, will this be partly because Gandhi, by keeping up his struggle obstinately and without hatred, disinfected the political air?

That one even thinks of asking such questions indicates his stature. One may feel, as I do, a sort of aesthetic distaste for Gandhi, one may reject the claims of sainthood made on his behalf (he never made any such claim himself, by the way), one may also reject sainthood as an ideal and therefore feel that Gandhi’s basic aims were anti-human and reactionary: but regarded simply as a politician, and compared with the other leading political figures of our time, how clean a smell he has managed to leave behind!

On Ben Stokes - Do sportsmen have a responsibility to the sport?

Suresh Menon in The Hindu



One of the more amusing sights in cricket recently has been that of England trying desperately to work out a formula to simultaneously discipline Ben Stokes and retain him for the Ashes series. To be fair, such contortion is not unique. India once toured the West Indies with Navjot Singh Sidhu just after the player had been involved in a road rage case that led to a death.

Both times, the argument was one we hear politicians make all the time: Let the law takes its course. It is an abdication of responsibility by cricket boards fully aware of the obligation to uphold the image of the sport.

Cricketers, especially those who are talented, and therefore have been indulged, tend to enjoy what George Orwell has called the “benefit of the clergy”. Their star value is often a buffer against the kind of response others might have received. Given that the team leaves for Australia at the end of this month, it is unlikely that Stokes will tour anyway, yet the ECB’s reaction has been strange.

Neither Stokes nor Alex Hales, his partner at the brawl in Bristol which saw Stokes deliver what the police call ABH (Actual Bodily Harm), was dropped immediately from the squad. This is a pointer to the way cricket boards think.

An enquiry by the England and Wales Cricket Board (ECB) would not have taken more than a few hours. Given the cctv footage, the players’ own versions, and the testimony of the victims, it is unlikely that there could be any ambiguity about what happened. Yet the ECB has chosen to bring in its independent Cricket Discipline Commission only after the police have completed their inquiries.

Top sportsmen tend to be national heroes, unlike, say, top chartered accountants or geography teachers, and they have a responsibility to ensure they do not bring the sport into disrepute. It is a tough call, and not everybody agrees that your best all rounder should also be your most ideally-behaved human being. But that is the way it is. After all, sport is an artificial construct; rules around it might seem to be unrealistic too.

Stokes brought “the game into disrepute” — the reason Ian Botham and Andrew Flintoff were banned in the past — and he should not be in the team. The ECB’s response cannot be anything other than a ban. Yet, it is pussy-footing around the problem in the hope that there is a miracle. Perhaps the victims will not press charges. Perhaps the police might decide that the cctv images are inconclusive.

Clearly player behaviour is not the issue here. There are two other considerations. One was articulated by former Aussie captain Ian Chappell: Without Stokes, England stood no chance in the Ashes. The other, of equal if not greater concern to the ECB, is the impact of Stokes’s absence on sponsorship and advertising. Already the brewers Greene King has said it is withdrawing an advertisement featuring England players.

Scratch the surface on most moral issues, and you will hit the financial reasons that underlie them.

Stokes, it has been calculated, could lose up to two million pounds in endorsements, for “bringing the product into disrepute”, as written into the contracts. It will be interesting to see how the IPL deals with this — Stokes is the highest-paid foreign player in the tournament.

And yet — here is another sporting irony — there is the question of aggression itself. Stokes (like Botham and Flintoff and a host of others) accomplishes what he does on the field partly because of his fierce competitive nature and raw aggression.

Just as some players are intensely selfish, their selfishness being a reason for their success and therefore their team’s success, some players bring to the table sheer aggression.

Mike Atherton has suggested that Stokes should learn from Ricky Ponting who was constantly getting into trouble in bars early in his career. Ponting learnt to channelise that aggression and finished his career as one of the Aussie greats. A more recent example is David Warner, who paid for punching Joe Root in a bar some years ago, but seems to have settled down as both batsman and person.

Stokes will be missed at the Ashes. He has reduced England’s chances, even if Moeen Ali for one thinks that might not be the case.

Still, Stokes is only 26 and has many years to go. It is not too late to work on diverting all that aggression creatively. Doubtless he has been told this every time he has got into trouble. He is a rare talent, yet it would be a travesty if it all ended with a rap on the knuckles. England must live — however temporarily —without him.

Tuesday 3 October 2017

The many shades of darkness and light

If we do not recognise the multiplicity of our past, we cannot accept the multiplicity of our present


Tabish Khair in The Hindu


For most Europeans and Europeanised peoples, Western modernity starts assuming shape with something called the Enlightenment, which, riding the steed of Pure Reason, sweeps away the preceding ‘Dark Ages’ of Europe. Similarly, for religious Muslims, the revelations of Islam mark a decisive break in Arabia from an earlier age of ignorance and superstition, often referred to as ‘Jahillia’.

Both the ideas are based on a perception of historical changes, but they also tinker with historical facts. In that sense, they are ideological: not ‘fake’, but a particular reading of the material realities that they set out to chronicle. Their light is real, but it blinds us to many things too.

For instance, it has been increasingly contested whether the European Dark Ages were as dark as the rhetoric of the Enlightenment assumes. It has also been doubted whether the Enlightenment shed as much light on the world as its champions claim. For instance, some of the darkest deeds to be perpetuated against non-Europeans were justified in the light of the notion of ‘historical progress’ demanded by the Enlightenment. Finally, even the movement away from religion to reason was not as clear-cut as it is assumed: well into the 19th century, Christianity (particularly Protestantism) was justified in terms of divinely illuminated reason as against the dark heathen superstitions of other faiths, and this logic has survived in subtler forms even today.

In a similar way, the Islamic notion of a prior age of Jahillia is partly a construct. While it might have applied to some Arab tribes most directly influenced by the coming of Islam, it was not as if pre-Islamic Arabia was simply a den of darkness and ignorance. There were developed forms of culture, poetry, worship and social organisation in so-called Jahillia too, all of which many religious Arab Muslims are not willing to consider as part of their own inheritance today. Once again, this notion of a past Jahillia has enabled extremists in Muslim societies to treat other people in brutal ways: a recent consequence was the 2001 destruction of the ancient Buddhas of Bamiyan statues by the Taliban in Afghanistan, not to mention the persecution of some supposed ‘idolators’ in Islamic State-occupied territories.

Achievements and an error

Both the notions — the Dark Ages followed by the Enlightenment and Jahillia followed by the illumination of Islam — are based on some real developments and achievements. Europe did move, slowly and often contradictorily, from religious and feudal authority to a greater tendency to reason and hence, finally, to allotting all individuals a theoretically equivalent (democratic) space as a human right rather than as a divine boon. Similarly, many parts of pre-Islamic Arabia (‘Jahillia’) did move from incessant social strife and a certain lack of cohesion to the far more organised, and hence hugely successful, politico-religious systems enabled by Islam. It might also be, as many religious Muslims claim, that early Islam marked some distinctively progressive and egalitarian values compared to the predominant tribalism of so-called Jahillia.

In both cases, however, the error has been to posit a complete break: a before-after scenario. This is not sustained by all the historical evidence. Why do I need to point this out? Because there are two great problems with positing such decisive before-after scenarios, apart from that of historical error.

Two problems of a complete break

First, it reduces one’s own complex relationship to one’s past to sheer negation. The past — as the Dark Ages or Jahillia — simply becomes a black hole into which we dump everything that we feel does not belong to our present. This reduces not only the past but also our present.

Second, the past — once reduced to a negative, obscure, dark caricature of our present — can then be used to persecute peoples who do not share our present. In that sense, the before-after scenario is aimed at the future. When Europeans set out to bring ‘Enlightenment’ values to non-European people, they also justified many atrocities by reasoning that these people were stuck in the dark ages of a past that should have vanished, and hence such people needed to be forcibly civilised for their own good. History could be recruited to explain away — no, even call for — the persecution that was necessary to ‘improve’ and ‘enlighten’ such people. I need not point out that some very religious Muslims thought in ways that were similar, and some fanatics still do.

I have often wondered whether the European Enlightenment did not adopt just Arab discoveries in philosophy or science, ranging from algebra to the theory of the camera. Perhaps their binary division of their own past is also an unconscious imitation of the Arab bifurcation of its past into dark ‘Jahillia’ and the light of Islam. Or maybe it is a sad ‘civilisational’ trend — for some caste Hindus tend to make a similar cut between ‘Arya’ and ‘pre-Arya’ pasts, with similar consequences: a dismissal of aboriginal cultures, practices and rights today as “lapsed” forms, or the whitewashing of Dravidian history by the fantasy of a permanent ‘Aryan’ presence in what is India.

All such attempts — Muslim, Arya-Hindu, or European — bear the germs of potential violence. After all, if we cannot accept our own evolving identities in the past, how can we accept our differences with others today? And if we cannot accept the diversity and richness of our multiple pasts, how can we accept the multiplicity of our present?

Monday 2 October 2017

Capitalist? Socialist? It’s time we dropped such meaningless labels from our political discourse

Ben Chu in The Independent



The American essayist Ralph Waldo Emerson once observed that a foolish consistency is the hobgoblin of little minds. Swap “foolish consistency” for “foolish label” and one has a good description of our contemporary political discourse.

Theresa May defends “free market capitalism”. Jeremy Corbynmakes the case for “21st century socialism”. So the headlines and the news reports yell at us. So the party leaders themselves inform us in their speeches.

But what do these labels actually mean? What economic policies do they signify? What sort of societies do they describe?

The concept of capitalism dates back to the Industrial Revolution, when wealthy entrepreneurs owned the new physical “capital” that was made possible by advances in technology. The boss of the new textile factory was also the owner. And that ownership conferred immense economic power and social authority, as factory bosses could determine the wages and conditions of the workers.

But who owns the physical capital, the “means of production”, of our modern economy? It’s no longer the people who run the large organisations in which a great many of us work. Millions of us will be invested in these giant companies through our pension funds. Does that make us all “capitalists”, like little 19th century mill owners? Hardly. Economic power has been divorced from corporate ownership. But that doesn’t mean it’s been broadly shared.

Another wrinkle is that today’s most dynamic companies – think Google, Amazon and Uber – actually have very little “capital” in the classic meaning of the word. The value of such firms derives not from tangible equipment or commodities, but from their intellectual property, from the expertise of their high-skilled employees and, increasingly, their networks and brands.

“Socialism” is a similarly problematic label, dating from the era of political struggles between newly-organised workers and the established economic elite. But the workers won many of those battles, establishing workplace protections, universal voting rights and state welfare systems. So what does socialism mean in a modern context? Soviet Union-style central planning and the abolition of private property? Venezuelan-style price controls? Cuban-style suppression of civil liberties?

Or does it simply mean the state ownership of certain natural monopoly utilities? This seems to be the justification for the use of the label in relation to Labour’s election manifesto. But, following that rationale, should we describe the Netherlands as socialist because its rail system is state-owned? Is France socialist because it has a national energy company? Is Germany socialist because it has rent controls?

In fact all these countries are social democracies – a variety of developed-world market-based economy. Britain has another variety. So does Japan. So do the Scandinavian nations. These are all mixed economies, where markets coexist with some degree of state ownership and intervention. Even America, with its state-funded scientific research programmes and New Deal-era social security system, is really a mixed economy.

The idea that Theresa May and the Conservatives are offering a set of policies that can be usefully summed up as “capitalism” and Labour are offering something entirely distinct called “socialism”, is fatuous. There are certainly differences between the two major parties in their view of the proper borders between market and state within our mixed economy (bigger differences than there have been for several decades) – but their positions plainly still lie on a recognisable continuum.

Theresa May herself says she wants a louder voice for workers in company board rooms, and stresses that markets must operate “with the right rules and regulations”. And Jeremy Corbyn, for all the attempts by the right-wing press to portray him as a bloodthirsty revolutionary, is not calling for the nationalisation of supermarkets and car manufacturers.

People are time-poor, and labels can be a useful shorthand when we all know roughly what is being referred to. But these particular labels – “capitalist”, “socialist” – don’t facilitate understanding: they short-circuit it. They don’t encourage us to think seriously about the challenges of making our complex and rapidly-evolving economies work in ways that will raise living standards and opportunities for human flourishing. They are essentially a spur to mindless tribalism: an invitation to take part in the political equivalent of an English Civil War battle recreation society.

The best advice is to banish the hobgoblins. Ignore the labels and focus on the merit – or otherwise – of the policies.

Sunday 1 October 2017

The pendulum swings against privatisation

Evidence suggests that ending state ownership works in some markets but not others


Tim Harford in The Financial Times


Political fashions can change quickly, as a glance at almost any western democracy will tell you. The pendulum of the politically possible swings back and forth. Nowhere is this more obvious than in the debates over privatisation and nationalisation. 


In the late 1940s, experts advocated nationalisation on a scale hard to imagine today. Arthur Lewis thought the government should run the phone system, insurance and the car industry. James Meade wanted to socialise iron, steel and chemicals; both men later won Nobel memorial prizes in economics. 

They were in tune with the times: the British government ended up owning not only utilities and heavy industry but airlines, travel agents and even the removal company, Pickfords. The pendulum swung back in the 1980s and early 1990s, as Margaret Thatcher and John Major began an ever more ambitious series of privatisations, concluding with water, electricity and the railways. The world watched, and often followed suit. 

Was it all worth it? The question arises because the pendulum is swinging back again: Jeremy Corbyn, the bookies’ favourite to be the next UK prime minister, wants to renationalise the railways, electricity, water and gas. (He has not yet mentioned Pickfords.) Furthermore, he cites these ambitions as a reason to withdraw from the European single market. 

Privatisation’s proponents mention the galvanising effect of the profit motive, or the entrepreneurial spirit of private enterprise. Opponents talk of fat cats and selling off the family silver 

That is odd, since there is nothing in single market rules to prevent state ownership of railways and utilities — the excuse seems to be yet another Eurosceptic myth, the leftwing reflection of rightwing tabloids moaning about banana regulation. Since the entire British political class has lost its mind over Brexit, it would be unfair to single out Mr Corbyn on those grounds. 

Still, he has reopened a debate that long seemed settled, and piqued my interest. Did privatisation work? Proponents sometimes mention the galvanising effect of the profit motive, or the entrepreneurial spirit of private enterprise. Opponents talk of fat cats and selling off the family silver. Realists might prefer to look at the evidence, and the ambitious UK programme has delivered plenty of that over the years. 

There is no reason for a government to own Pickfords, but the calculus of privatisation is more subtle when it comes to natural monopolies — markets that are broadly immune to competition. If I am not satisfied with what Pickford’s has to offer me when I move home, I am not short of options. But the same is not true of the Royal Mail: if I want to write to my MP then the big red pillar box at the end of the street is really the only game in town. 

Competition does sometimes emerge in unlikely seeming circumstances. British Telecom seemed to have an iron grip on telephone services in the UK — as did AT&T in the US. The grip melted away in the face of regulation and, more importantly, technological change. 

Railways seem like a natural monopoly, yet there are two separate railway lines from my home town of Oxford into London, and two separate railway companies will sell me tickets for the journey. They compete with two bus companies; competition can sometimes seem irrepressible. 

But the truth is that competition has often failed to bloom, even when one might have expected it. If I run a bus service at 20 and 50 minutes past the hour, then a competitor can grab my business without competing on price by running a service at 19 and 49 minutes past the hour. Customers will not be well served by that. 

Meanwhile electricity and phone companies offer bewildering tariffs, and it is hard to see how water companies will ever truly compete with each other; the logic of geography suggests otherwise. 

All this matters because the broad lesson of the great privatisation experiment is that it has worked well when competition has been unleashed, but less well when a government-run business has been replaced by a government-regulated monopoly. 

A few years ago, the economist David Parker assembled a survey of post-privatisation performance studies. The most striking thing is the diversity of results. Sometimes productivity soared. Sometimes investors and managers skimmed off all the cream. Revealingly, performance often leapt in the year or two before privatisation, suggesting that state-owned enterprises could be well-run when the political will existed — but that political will was often absent. 

My overall reading of the evidence is that privatisation tended to improve profitability, productivity and pricing — but the gains were neither vast nor guaranteed. Electricity privatisation was a success; water privatisation was a disappointment. Privatised railways now serve vastly more passengers than British Rail did. That is a success story but it looks like a failure every time your nose is crushed up against someone’s armpit on the 18:09 from London Victoria. 

The evidence suggests this conclusion: the picture is mixed, the details matter, and you can get results if you get the execution right. Our politicians offer a different conclusion: the picture is stark, the details are irrelevant, and we metaphorically execute not our policies but our opponents. The pendulum swings — but shows no sign of pausing in the centre.