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Spiritual awakening

Globalisation has been good for gods in the Indian subcontinent. As the region has remade itself, it

On a foggy winter's night in November 1998, Om Singh, a young landowner from Rajasthan, was riding his Enfield Bullet back home after winning a local election near Jodhpur, when he misjudged a turning and hit a tree. He was killed instantly. As a memorial, his father fixed the motorbike to a stand, raised on a concrete plinth under the shelter of a small canopy, near the site of the crash.

“We were a little surprised when people started reporting miracles near the bike," Om's uncle Shaitan Singh told me on my last visit. "Om was no saint, and people say he had had a drink or two before his crash. In fact, there was no indication whatsoever during his life that he was a deity. He just loved his horses and his motorbike. But since his death a lot of people have had their wishes fulfilled here - particularly women who want children. For them, he has become very powerful. They sit on the bike, make offerings to Om Singh-ji, and it is said that flowers drop into their laps. Nine months later they have sons. Every day people see him. He comes to many people in their dreams."

“How did it all begin?" I asked. We were in the middle of a surging throng: crowds of red-turbaned and brightly sari-ed villagers gathered around the bike, the women queuing patiently to straddle its seat and ring the bell on the canopy. Nearby, two drummers were loudly banging dholaks, while chai-shop owners made tea and paan for the pilgrims. Other stalls sold plaques, postcards and statues of Om Singh and his motorbike. Pieces of cloth were tied to branches all over the tree and gold flags flapped in the desert wind. Everywhere buses and trucks were disgorging pilgrims coming to visit Rajasthan's newest shrine.

“First it was just family and friends who came," Shaitan Singh replied. "Then people realised there was a certain power here. It wasn't just the Hindus: Muslims came, too. Now the truck drivers will never pass this spot without stopping and making an offering. Every year the crowd grows."

“Do you believe in Om's power?" I asked.

“The more faith grows," he answered enigmatically, "the stronger it becomes."

Across the subcontinent, faith has been growing and religion becoming stronger as the region develops and reinvents itself. In 19th-century Europe, industrialisation and the mass migrations from farms and villages to the towns and cities went hand in hand with the Death of God: organised religion began to decline, and the church and state moved further and further apart. The experience of south Asia has been more or less the reverse of this.

During the early 20th century, educated, urban Hindu reformers moved away from ritualised expressions of faith, and early leaders such as Jawaharlal Nehru and B R Ambedkar constitutionally formed India as a model secular state with no official faith: this was to be a nation where, in the words of Nehru, dams would be the new temples. But over the past 20 years, just as India has freed itself from the shackles of Nehruvian socialism, so India has also gone a long way to try to shake off Nehruvian secularism, too. The revival of religiosity and religious extremism in Pakistan may be more the focus of the international media, especially as Barack Obama grapples in vain with the troubled region now hyphenated as Af-Pak, but what is happening in India is equally remarkable and in many ways surprisingly similar.

The dramatic revival of piety and religion in India has recently been the subject of a remarkable study by Meera Nanda, a Delhi-based academic who has shown how globalisation may be making India richer, and arguably more materialistic, but it is also making Indians more religious, and at the same time making religion more political. "Globalisation has been good for the gods," she writes in The God Market.

As India is liberalising and globalising its economy, the country is experiencing a rising tide of popular Hinduism which is leaving no social segment and no public institution untouched. There is a surge in popular religiosity among the burgeoning and largely Hindu middle classes, as is
evident from a boom in pilgrimage and the invention of new, more ostentatious rituals. This religiosity is being cultivated by the emerging state-temple-corporate complex that is replacing the more secular public institutions of the Nehruvian era . . . a new Hindu religiosity is getting more deeply embedded in everyday life, in both the private and public spheres.

India now has 2.5 million places of worship, but only 1.5 million schools and barely 75,000 hospitals. Pilgrimages account for more than 50 per cent of all package tours, the bigger pilgrimage sites now vying with the Taj Mahal for the most visited sites in the country: the Balaji Temple in Tirupati had 23 million visitors in 2008, while over 17 million trekked to the mountain shrine of Vaishno Devi.

In a 2007 survey jointly conducted by the Hindustan Times and the CNN-IBN news channel, 30 per cent of Indians said they had become more religious in the past five years. Such is the appetite for rituals in this newly religious middle class that there has recently been a severe shortfall of English- and Sanskrit-speaking priests with the qualifications to perform Vedic and Agamic rites. When it comes to rituals in the new India, demand has completely outstripped supply.

In her book, Nanda writes engagingly about what she calls "karma capitalism" and the Indian equivalent of American televangelists, the TV God Men, some of whom have huge followings: Sri Sri Ravi Shankar, who is in many ways India's Pat Robertson, has built a global spirituality empire called the Art of Living, which claims 20 million members, and much of whose land has been donated by Indian state governments.

Meanwhile, religion and politics are becoming ever more entangled. Nanda presents interesting evidence about the dramatic increase in state funding for yagnas (fire sacrifices), yoga camps and temple tourism, as well as the sharp increase in state donation of land for temples, ashrams and training schools for temple priests. In Rajasthan, the government annually spends 260 million rupees on temple renovations and training for Hindu priests. Mass pujas (prayers) and public yagnas have become an important part of political campaigning for all parties, not just the overtly Hindu Bharatiya Janata Party (BJP).

Perhaps surprisingly, India's growing band of techies and software professionals seems particularly open both to religiosity in general and to hard right-wing Hindu nationalism in particular, so much so that many have joined a special wing of the far-right Rashtriya Swayamsevak Sangh (the National Association of Volunteers), the organisation to which Mahatma Gandhi's assassin belonged. The RSS now organises regular social meetings called IT-milans, where right-wing techies can "meet like-minded people and get a sense of participating in something bigger than just punching keyboards all day".

The modernisation of the RSS is certainly one of the more worrying trends in Indian religiosity, as is the organisation's increasing respectability in the eyes of the urban Indian middle class. For, like the Phalange in Lebanon, the RSS was founded in direct imitation of European fascist movements. Like its 1930s models, it still makes much of daily parading in khaki drill and the giving of militaristic salutes (the RSS salute differs from that of the Nazis only in the angle of the forearm, which is held horizontally over the chest). The idea is to create a corps of dedicated paramilitary zealots who will bring about a revival of what the RSS sees as the lost Hindu golden age of national strength and purity.

The BJP, which governed India from 1999 until 2004, and is now the principal opposition party, was founded as the political wing of the RSS, and most senior BJP figures hold posts in both organisations. Though the BJP is certainly much more moderate and pragmatic than the RSS - like Likud in Israel, the BJP is a party that embraces a wide spectrum of right-wing opinion, ranging from mildly conservative free marketeers to raving ultra-nationalists - both organisations believe, as the centrepiece of their ideology, that India is in essence a Hindu nation and that the minorities may live in India only if they acknowledge this.

The most notable political manifestation of the increasing presence of religion in Indian life took place in the early 1990s as the Hindu right rose slowly to power, partly as a result of taking advantage of a long-running dispute over a small mosque in the northern Indian town of Ayodhya. The argument revolved around the question of whether Mir Baqi, a general of the Mughal emperor Babur (1483-1530), had built the mosque over a temple commemorating the birthplace of the Hindu god Lord Ram.

Although there was no evidence to confirm the existence of the temple or even to identify the modern town of Ayodhya with its legendary predecessor, Hindu organisations began holding rallies at the site, campaigning for the rebuilding of the temple. Finally, at a rally in December 1992, a crowd of 200,000 militants, whipped into a frenzy by inflammatory BJP statements, stormed the barricades. Shouting "Death to the Muslims!" they attacked the mosque with sledgehammers. One after another, like symbols of India's traditions of tolerance, democracy and secularism, the three domes were smashed to rubble.

Over the next month, violent unrest swept India: mobs went on the rampage and Muslims were burned alive in their homes, scalded by acid bombs or knifed in the street. By the time the army was brought in, at least 1,400 people had been slaughtered in Bombay alone. It was a measure of how polarised things had become in India that this violence played so well with the electorate. In 1991, the BJP had taken 113 seats in parliament, up from 89 in the previous ­election. In 1996 that proportion virtually doubled, and the BJP became the largest party. After the 1999 general election, with 179 seats, it was finally able to take the reins of power into its hands.

Since then, however, the BJP has lost two general elections, largely for economic reasons, and perhaps especially their neglect of India's farmers; the ability of the religious right to mobilise votes by exploiting communal religious grievances seems, thankfully, to have diminished. But as large-scale anti-Christian riots in Orissa last year showed, it doesn't take much to wake the sleeping dragon of communal conflict from its slumber, and Ayodhya remains an emotive and divisive issue. If religion is no longer a vote-winner for the BJP, it is largely because other parties have found more subtle ways to use its ever-growing power.

F or the growing politicisation of faith among the middle classes is only part of a much wider story. Behind the headlines, and beyond the political sphere, in the small towns and villages suspended between modernity and tradition, Indian religion is in a state of fascinating flux. Over the past couple of years, while researching Nine Lives, my book on local and folk beliefs in contemporary India, I have been very struck by how fast forms of traditional Indian devotion have been changing, even in the villages and backwaters, as India transforms itself at breakneck speed.

As is now well known, India is already on the verge of overtaking Japan to become the third-largest economy in the world; the Indian economy is expected to overtake that of the United States by roughly 2050. Much has now been written about the way that India is moving forward to return the subcontinent to its historical place at the heart of global trade, but so far little has been said about the way these huge earthquakes have affected the diverse religious traditions of south Asia, and particularly the archaic and deeply embedded syncretic, pluralist folk traditions that continue to defy the artificial boundaries of modern political identities.

Though the west often likes to imagine the religions of the east as deep wells of ancient and unchanging wisdom, in reality much of India's religious identity is closely tied to specific social groups, caste practices and father-to-son lineages, all of which are changing rapidly as Indian society transforms itself beyond recognition.

Certainly on my travels around India for Nine Lives, I found many worlds strangely colliding as the velocity of this process increases. In Jaipur, I spent time with Mohan Bhopa, an illiterate goatherd from Rajasthan who keeps alive a 4,000-line sacred epic that he, now virtually alone, still knows by heart. Living as a wandering bard and storyteller, he remembers the slokas of one of the great oral epics of Rajasthan praising the hero-god Papuji. Mohan told me, however, that his ancient recitative art is threatened by the lure of Bollywood and the Hindu epics shown on Indian TV, and he has had to adapt the old bardic tradition in order to survive.

The epic that Mohan recites contains a regional variant on the "national" Ramayana myth. In the main Ramayana tradition, the hero Lord Ram goes to Lanka to rescue his wife, Sita, who has been captured by the demon king Ravana. In the Rajasthani version of the myth, the hero is Papuji, and he goes to Lanka, not to rescue a kidnapped spouse, but to rustle Ravana's camels. It is exactly these sorts of regional variants, and self-contained local cults, which are being lost and menaced by what the eminent Indian historian Romila Thapar calls the new "syndicated Hinduism".

As Thapar explains in a celebrated essay on the subject, Hinduism is different from other major world religions in that it has no founder and no founding text. Indeed, the idea that Hinduism constitutes a single system is a very recent idea, dating from the arrival of the British in Bengal in the 18th century. Used to western systems of faith, early colonial scholars organised many of the disparate, overlapping multiplicity of non-Abrahamic religious practices, cults, myths, festivals and rival deities that they encountered across south Asia into a new world religion that they described as "Hinduism".

Since the mid-19th century, Hindu reformers such as Vivekananda have taken this pro­cess forward, so that Hinduism has slowly become systemised into a relatively centralised nationalist ideology which now increasingly resembles the very different structures of the Semitic belief systems that its more extreme adherents tend to abhor. "The model," writes Thapar, "is in fact that of Islam and Christianity . . . worship is increasingly congregational and the introduction of sermons on the definition of a good Hindu and Hindu belief and behaviour [is] becoming common, and register[s] a distinct change from earlier practice."

According to Thapar, the speed of this homogenising process is now rising. "The emergence of a powerful middle class", she believes, has created a desire for a "uniform, monolithic Hinduism, created to serve its new requirements". This Hinduism masquerades as the revival of something ancient and traditional, but it is really "a new creation, created to support the claims of [Hindu] majoritarianism".

All over India, villages were once believed to be host to a numberless pantheon of sprites and godlings, tree spirits and snake gods who were said to guard and regulate the ebb and flow of daily life. They were worshipped and propitiated, as they knew the till and soil of the local fields and the sweet water of the wells, even the needs and thirsts of the cattle and the goats in the village. But increasingly in urban India, these small gods and goddesses are falling away and out of favour as faith becomes more centralised, and as local gods and goddesses give way to the national, hyper-masculine hero deities, especially Lord Krishna and Lord Ram, a process that scholars call the "Rama-fication" of Hinduism. New deities are emerging, but carefully tailored for satisfying modern and middle-class needs, such as Santoshti Ma, who first reached national consciousness in the 1970s Bollywood film Jai Santoshti Ma. Also popular are other new deities such as Shani Maharaj, who neutralises the negative impact of the planet Saturn, and Aids Amma, who reputedly has the power to do away with HIV.

Ironically, there are strong parallels between the way this new Hinduism is standardising faith and what is happening in south Asian Islam - a religion Hindu nationalists routinely demonise. There, too, the local is tending to give way to the national as the cults of local Sufi saints - the warp and woof of popular Islam in India for centuries - lose ground to a more standardised, middle-class and textual form of Islam, imported from the Gulf and propagated by the Wahhabis, Deobandis and Tablighis in their madrasas. Today, the great Sufi shrines of the region find themselves in a position much like that of the great cathedrals and saints' tombs of northern Europe 500 years ago, on the eve of the Reformation. As in 16th-century Europe, the reformers and puritans are on the rise, distrustful of music, images, festivals and the devotional superstitions of saints' shrines. As in Europe, they look to the text alone for authority, and recruit the bulk of their supporters from the newly literate urban middle class, which looks down on what it sees as the corrupt superstitions of the illiterate peasantry.

Where this process differs from 16th-century Europe is in the important role played by colonialism. Religiously conservative Hindus and Muslims alike suffered the humiliation of colonial subjugation, and had to watch as their faith was branded degraded and superstitious by the victorious colonisers and their missionaries. In both faiths, reform movements re-examined and reinvented their religions in reaction to the experience of failure and conquest; but while Hindu reformers tried to modernise their diverse spectrum of theologies and cults to become more like western Christianity, Muslim radicals opted instead to turn their backs on the west, and return to what they saw as the pure Islamic roots of their faith.

In the aftermath of the brutal massacres by the British following the Great Uprising of 1857, Muslim radicals left the ruins of Delhi and the demolished Mughal court, rejecting both the gentle Sufi traditions of the late Mughal emperors and the ways of the west. Instead, disillusioned refugees from Delhi founded a Wahhabi-like madrasa at Deoband that went back to Quranic basics and stripped out anything syncretic, Hindu or European from the curriculum. A hundred and forty years later, it was out of Deobandi madrasas in Pakistan that the Taliban emerged to create the most retrograde Islamic regime in modern history, a regime that in turn provided the crucible from which emerged al-Qaeda, and the most radical fundamentalist Islamic counter-attack the modern west has yet had to face. In the al-Qaeda training camps of Kandahar, Deobandi currents of thought received a noxious cross-fertilisation with ideas that emerged from two other intellectuals forced to rethink their faith in reaction to domination by the west: the fathers of the intellectual Egyptian jihad, Hassan al-Banna and Sayyid Qutb.

Understandably, while it is the Islamists' assaults on India and the west that have absorbed our press of late, it is sometimes forgotten that the Taliban are also at war with rival comprehensions of Islam. Last year, in a new front on this war, they dynamited the shrine of the 17th-century Pashtun poet-saint Rahman Baba at the foot of the Khyber Pass in the North-West Frontier. For centuries, his shrine was a place where musicians and poets had gathered; Rahman Baba's Sufi verses in Pashto had long made him the national poet of the Pathans. Some of the most magical evenings I have ever had in south Asia were spent in the garden of this shrine, under the palm trees, listening to the sublime singing of the Afghan Sufis.

Then, about ten years ago, a Saudi-funded Wahhabi madrasa was built at the end of the track leading to the dargah (Sufi shrine). Soon its students took it upon themselves to halt what they saw as the un-Islamic practices of the shrine. On my last visit there, in 2003, I talked about the situation with the keeper of the shrine, Tila Mohammed. He described how young Islamists regularly came and complained that his shrine was a centre of idolatry, immorality and superstition: "My family have been singing here for generations," he said. "But now these Arab madrasa students come here and create trouble."

“What sort of trouble?" I asked.

“They tell us that what we do is wrong. They tell women not to come at all, and to stay at home. They ask people who are singing to stop. Sometimes arguments break out - even fist fights. This used to be a place where people came to get peace of mind. Now when they come here they just encounter more problems, so gradually they have stopped coming."

“How long has this being going on?"

“Before the Afghan war there was nothing like this," he replied. "But then the Saudis came, with their propaganda to stop visiting the saints, and to stop us preaching ishq [love]. Now this trouble happens more and more frequently."

The end came on 4 March 2009. A group of Pakistani Taliban arrived at the shrine before dawn and placed dynamite around the squin­ches of the dome. The shrine chamber was completely destroyed. The Taliban issued a press release blaming the shrine for opening its doors to women and allowing them to pray and seek healing there. Since then several other shrines in areas under Taliban control have been blown up or shut down, and one - that of Haji Sahib Turangzai, in the Mohmand region of the Federally Administered Tribal Areas - has been turned into a Taliban headquarters.

If the North-West Frontier is now dominated by the Wahhabis and their mad­rasas, in Sindh the Sufis are putting up a strong resistance on behalf of their saints and the old, mixed culture that emerged in the course of a thousand years of cohabitation between Hinduism and Islam. Here, 60 years after Partition and the expulsion of most of the Hindus of Pakistan into India, one of the Sajjada Nasheens, or hereditary tomb guardians of the great shrine of Sehwan, is still a Hindu, and it is he who performs the opening ritual at the annual Urs (death ceremony). Hindu holy men, pilgrims and officials still tend the shrine, replenishing the lamps and offering water to visiting pilgrims.

Many scholars believe that the Sufi fakirs of Sehwan Sharif model their dreadlocks, red robes and ecstatic dancing on those of Shaivite sadhus. For Sehwan was once the cult centre of a Shaivite sect called the Pashupatas, who believed in emulating the dance of Shiva as part of their rituals, and using this shamanistic dancing as a way of reaching union with God.

As elsewhere in south Asia, these local, composite and pluralistic traditions are under threat; but, as in India, the Sufis of Sindh are not going down without a fight. As one female Sufi devotee put it: "I sometimes feel that it is my duty to protect the Sufi saints, just as they have protected me. Today in our Pakistan there are so many of these mullahs and Wahhabis and Tablighis who say that to pay respect to the saints in their shrines is shirk [heresy].

“Those hypocrites! They sit there reading their law books and arguing about how long their beards should be, and fail to listen to the true message of the Prophet. Mullahs and Aza­zeel [Satan] are the same thing."

As the great saint Shah Abdul Latif wrote:

Why call yourself a scholar, o mullah?
You are lost in words.
You keep on speaking nonsense,
Then you worship yourself.
Despite seeing God with your own eyes,
You dive into the dirt.
We Sufis have taken the flesh from
the Holy Quran,
While you dogs are fighting with each other.
Always tearing each other apart,
For the privilege of gnawing at the bones.

William Dalrymple is the New Statesman's south Asia correspondent. His most recent book is "Nine Lives: In Search of the Sacred in Modern India", published by Bloomsbury (£20)

This article first appeared in the 21 December 2009 issue of the New Statesman, Christmas Special

Jeremy Corbyn. Photo: Getty
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Lexit: the EU is a neoliberal project, so let's do something different when we leave it

Brexit affords the British left a historic opportunity for a decisive break with EU market liberalism.

The Brexit vote to leave the European Union has many parents, but "Lexit" – the argument for exiting the EU from the left – remains an orphan. A third of Labour voters backed Leave, but they did so without any significant leadership from the Labour Party. Left-of-centre votes proved decisive in determining the outcome of a referendum that was otherwise framed, shaped, and presented almost exclusively by the right. A proper left discussion of the issues has been, if not entirely absent, then decidedly marginal – part of a more general malaise when it comes to developing left alternatives that has begun to be corrected only recently, under Jeremy Corbyn and John McDonnell.

Ceding Brexit to the right was very nearly the most serious strategic mistake by the British left since the ‘70s. Under successive leaders Labour became so incorporated into the ideology of Europeanism as to preclude any clear-eyed critical analysis of the actually existing EU as a regulatory and trade regime pursuing deep economic integration. The same political journey that carried Labour into its technocratic embrace of the EU also resulted in the abandonment of any form of distinctive economics separate from the orthodoxies of market liberalism.

It’s been astounding to witness so many left-wingers, in meltdown over Brexit, resort to parroting liberal economics. Thus we hear that factor mobility isn’t about labour arbitrage, that public services aren’t under pressure, that we must prioritise foreign direct investment and trade. It’s little wonder Labour became so detached from its base. Such claims do not match the lived experience of ordinary people in regions of the country devastated by deindustrialisation and disinvestment.

Nor should concerns about wage stagnation and bargaining power be met with finger-wagging accusations of racism, as if the manner in which capitalism pits workers against each other hasn’t long been understood. Instead, we should be offering real solutions – including a willingness to rethink capital mobility and trade. This places us in direct conflict with the constitutionalised neoliberalism of the EU.

Only the political savvy of the leadership has enabled Labour to recover from its disastrous positioning post-referendum. Incredibly, what seemed an unbeatable electoral bloc around Theresa May has been deftly prized apart in the course of an extraordinary General Election campaign. To consolidate the political project they have initiated, Corbyn and McDonnell must now follow through with a truly radical economic programme. The place to look for inspiration is precisely the range of instruments and policy options discouraged or outright forbidden by the EU.

A neoliberal project

The fact that right-wing arguments for Leave predominated during the referendum says far more about today’s left than it does about the European Union. There has been a great deal of myth-making concerning the latter –much of it funded, directly or indirectly, by the EU itself.

From its inception, the EU has been a top-down project driven by political and administrative elites, "a protected sphere", in the judgment of the late Peter Mair, "in which policy-making can evade the constraints imposed by representative democracy". To complain about the EU’s "democratic deficit" is to have misunderstood its purpose. The main thrust of European economic policy has been to extend and deepen the market through liberalisation, privatisation, and flexiblisation, subordinating employment and social protection to goals of low inflation, debt reduction, and increased competitiveness.

Prospects for Keynesian reflationary policies, or even for pan-European economic planning – never great – soon gave way to more Hayekian conceptions. Hayek’s original insight, in The Economic Conditions of Interstate Federalism, was that free movement of capital, goods, and labour – a "single market" – among a federation of nations would severely and necessarily restrict the economic policy space available to individual members. Pro-European socialists, whose aim had been to acquire new supranational options for the regulation of capital, found themselves surrendering the tools they already possessed at home. The national road to socialism, or even to social democracy, was closed.

The direction of travel has been singular and unrelenting. To take one example, workers’ rights – a supposed EU strength – are steadily being eroded, as can be seen in landmark judgments by the European Court of Justice (ECJ) in the Viking and Laval cases, among others. In both instances, workers attempting to strike in protest at plans to replace workers from one EU country with lower-wage workers from another, were told their right to strike could not infringe upon the "four freedoms" – free movement of capital, labour, goods, and services – established by the treaties.

More broadly, on trade, financial regulation, state aid, government purchasing, public service delivery, and more, any attempt to create a different kind of economy from inside the EU has largely been forestalled by competition policy or single market regulation.

A new political economy

Given that the UK will soon be escaping the EU, what opportunities might this afford? Three policy directions immediately stand out: public ownership, industrial strategy, and procurement. In each case, EU regulation previously stood in the way of promising left strategies. In each case, the political and economic returns from bold departures from neoliberal orthodoxy after Brexit could be substantial.

While not banned outright by EU law, public ownership is severely discouraged and disadvantaged by it. ECJ interpretation of Article 106 of the Treaty on the Functioning of the European Union (TFEU) has steadily eroded public ownership options. "The ECJ", argues law professor Danny Nicol, "appears to have constructed a one-way street in favour of private-sector provision: nationalised services are prima facie suspect and must be analysed for their necessity". Sure enough, the EU has been a significant driver of privatisation, functioning like a ratchet. It’s much easier for a member state to pursue the liberalisation of sectors than to secure their (re)nationalisation. Article 59 (TFEU) specifically allows the European Council and Parliament to liberalise services. Since the ‘80s, there have been single market programmes in energy, transport, postal services, telecommunications, education, and health.

Britain has long been an extreme outlier on privatisation, responsible for 40 per cent of the total assets privatised across the OECD between 1980 and 1996. Today, however, increasing inequality, poverty, environmental degradation and the general sense of an impoverished public sphere are leading to growing calls for renewed public ownership (albeit in new, more democratic forms). Soon to be free of EU constraints, it’s time to explore an expanded and fundamentally reimagined UK public sector.

Next, Britain’s industrial production has been virtually flat since the late 1990s, with a yawning trade deficit in industrial goods. Any serious industrial strategy to address the structural weaknesses of UK manufacturing will rely on "state aid" – the nurturing of a next generation of companies through grants, interest and tax relief, guarantees, government holdings, and the provision of goods and services on a preferential basis.

Article 107 TFEU allows for state aid only if it is compatible with the internal market and does not distort competition, laying out the specific circumstances in which it could be lawful. Whether or not state aid meets these criteria is at the sole discretion of the Commission – and courts in member states are obligated to enforce the commission’s decisions. The Commission has adopted an approach that considers, among other things, the existence of market failure, the effectiveness of other options, and the impact on the market and competition, thereby allowing state aid only in exceptional circumstances.

For many parts of the UK, the challenges of industrial decline remain starkly present – entire communities are thrown on the scrap heap, with all the associated capital and carbon costs and wasted lives. It’s high time the left returned to the possibilities inherent in a proactive industrial strategy. A true community-sustaining industrial strategy would consist of the deliberate direction of capital to sectors, localities, and regions, so as to balance out market trends and prevent communities from falling into decay, while also ensuring the investment in research and development necessary to maintain a highly productive economy. Policy, in this vision, would function to re-deploy infrastructure, production facilities, and workers left unemployed because of a shutdown or increased automation.

In some cases, this might mean assistance to workers or localities to buy up facilities and keep them running under worker or community ownership. In other cases it might involve re-training workers for new skills and re-fitting facilities. A regional approach might help launch new enterprises that would eventually be spun off as worker or local community-owned firms, supporting the development of strong and vibrant network economies, perhaps on the basis of a Green New Deal. All of this will be possible post-Brexit, under a Corbyn government.

Lastly, there is procurement. Under EU law, explicitly linking public procurement to local entities or social needs is difficult. The ECJ has ruled that, even if there is no specific legislation, procurement activity must "comply with the fundamental rules of the Treaty, in particular the principle of non-discrimination on grounds of nationality". This means that all procurement contracts must be open to all bidders across the EU, and public authorities must advertise contracts widely in other EU countries. In 2004, the European Parliament and Council issued two directives establishing the criteria governing such contracts: "lowest price only" and "most economically advantageous tender".

Unleashed from EU constraints, there are major opportunities for targeting large-scale public procurement to rebuild and transform communities, cities, and regions. The vision behind the celebrated Preston Model of community wealth building – inspired by the work of our own organisation, The Democracy Collaborative, in Cleveland, Ohio – leverages public procurement and the stabilising power of place-based anchor institutions (governments, hospitals, universities) to support rooted, participatory, democratic local economies built around multipliers. In this way, public funds can be made to do "double duty"; anchoring jobs and building community wealth, reversing long-term economic decline. This suggests the viability of a very different economic approach and potential for a winning political coalition, building support for a new socialist economics from the ground up.

With the prospect of a Corbyn government now tantalisingly close, it’s imperative that Labour reconciles its policy objectives in the Brexit negotiations with its plans for a radical economic transformation and redistribution of power and wealth. Only by pursuing strategies capable of re-establishing broad control over the national economy can Labour hope to manage the coming period of pain and dislocation following Brexit. Based on new institutions and approaches and the centrality of ownership and control, democracy, and participation, we should be busy assembling the tools and strategies that will allow departure from the EU to open up new political-economic horizons in Britain and bring about the profound transformation the country so desperately wants and needs.

Joe Guinan is executive director of the Next System Project at The Democracy Collaborative. Thomas M. Hanna is research director at The Democracy Collaborative.

This is an extract from a longer essay which appears in the inaugural edition of the IPPR Progressive Review.

 

 

This article first appeared in the 21 December 2009 issue of the New Statesman, Christmas Special