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How I learned to stop worrying and love Amazon

The online retailer has reshaped bookselling since it entered the trade in 1995. But Amazon’s aggressive and “anti-competitive” tactics, especially for selling ebooks, are raising hackles in an industry under stress. What is the future of the book busines

Photo: Ralph D Fresco / Reuters

I have a confession. I like buying books online. From Amazon. Such an admission may seem unremarkable, indeed banal, to many book buyers, but offering it in the presence of book industry folk would be the equivalent of informing New Statesman readers that one admires Donald Rumsfeld or Rupert Murdoch. One cannot exaggerate the fear and loathing that Amazon inspires among publishers and rival booksellers. “I hate them,” one publisher who deals with Amazon regularly told me the other day, and many others have offered similar views – off the record, of course.

The story of contemporary publishing is largely that of what Amazon has done to it and of what it threatens – in publishers’ and booksellers’ nightmares – to do. It is the story of a huge contrast between the perceptions of readers, authors and Wall Street, and those of publishers and booksellers.

At first, in the 1990s, Amazon seemed cool – no doubt it still does to a good many people. There was romance in the company’s founder, Jeff Bezos, typing a business plan while his wife drove him in a Chevy from Texas to Seattle, and in his setting up a web retailer in a garage where the computers were powered by extension leads from the house. He was a geeky guy, with a weird, explosive, humourless laugh, but nevertheless came across as more personable than most executives.

In the book world, which Bezos had selected as the ideal entry point for his planned giant operation, Amazon’s cool image lasted only until the first of his company executives took the floor at an industry conference and spouted what was to become a familiar litany of unilluminating corporate jargon. Amazon, we realised, was remote and secretive. In a friendly industry, it had no interest in being collegiate. It played hardball. Fail to grant it the discounts it wanted, and it launched a battery of unpleasant correctives, chillingly outlined in Brad Stone’s recent book The Everything Store: Jeff Bezos and the Age of Amazon (Bantam Press). And, as we also learned, it was a tax avoider. (Amazon.co.uk accounts for its sales in Luxembourg.)

Worse, it appears to have ravaged the industry’s ecosystem. Because Bezos has so successfully trained investors to wait for returns, he has been able to offer loss-leading discounts beyond the scope of companies with the conventional imperatives of making profits. When Amazon arrived in the UK in October 1998, the leading specialist booksellers included the newly merged Waterstone’s (as it was then known) and Dillons (with 500 branches), Borders and Books Etc, Hammicks, James Thin and Ottakar’s. Now the only one left is Waterstones, with fewer than 300 branches – and recently it laid off 200 of its managers. There were 1,535 independent bookshops in the UK in 2008 and now there are 1,028. The rate of attrition in the United States has been similar.

The digital reading revolution, which Amazon kick-started by introducing the Kindle, has accelerated this process. Ebooks now account for a third of fiction sales in the UK, and by the end of 2014 the proportion will go up to half. These sales have mostly left terrestrial bookshops and gone to Amazon, whose Kindle has become the generic term for all e-reading devices. Furthermore, customers who have migrated to Amazon to buy ebooks there have bought more print books on the site, too. Amazon has at least 90 per cent of ebook sales in the UK. Overall, its UK book sales are worth roughly the same as the value of sales through all terrestrial bookshops put together.

Booksellers are crying foul. Tim Godfray, the chief executive of the Booksellers Association, has called for the Office of Fair Trading to re-examine Amazon’s dominance of the ebook market. Quoted in the Bookseller, he argued: “Booksellers are finding it impossible to compete against such a huge player that has such a stranglehold on the book market . . . Consumers are being left with a reduced choice of book suppliers and communities are losing their bookshops.”

To adapt the words of the sports commentator Chick Hearn, Godfray has two chances of getting what he wants: slim and none, and slim just left the building. It left when regulatory authorities on both sides of the Atlantic ruled against leading publishers in disputes over pricing policies that they had adopted, seemingly in an effort to curb Amazon’s discounting, following the opening of Apple’s iBookstore. All the evidence we have is that the authorities look benevolently on Amazon and its aggressive competitiveness over prices, and treat with hostility most attempts to blunt the retailer’s edge.

Digital publishing threatens to undermine their power. The first sign of danger, or confirmation of it, came when Amazon promoted its new Kindle device by pricing New York Times bestsellers at $9.99 – less, in most cases, than it was paying the publishers for each sale. Sure, Amazon was taking the hit; but what if it gained the power in the future to get publishers to lower their wholesale prices? At the same time, Amazon introduced Kindle Direct Publishing, encouraging many thousands of aspiring authors, by no means all of them talentless, to self-publish their work. Many did so at very low prices and some, trying to build an audience, gave their ebooks away.

It was horribly apparent to publishers that readers expected ebooks to be cheap. When the US publisher of a novel by Ken Follett tried to give the ebook roughly the same price as the hardback, readers bombarded Amazon with one-star reviews. Ebooks cost nothing to print and distribute, readers reckoned. Publishers would reply that most of their other costs remained the same, and that they had many additional costs, too: digitisation in various formats, software and hardware updates, constant monitoring of the internet for copyright infringements. Plus, they were still bringing out print editions. But this argument has not found a sympathetic audience.

The arrival of Apple as a seller of ebooks, following the launch of the iPad, seemed to offer a chance of alleviating the problem. Under the “wholesale model” by which publishers sold to Amazon, the US publisher of a potential New York Times bestseller put a price on the ebook of $25, sold it to Amazon for $12.50, and allowed Amazon to sell it for whatever price it liked.

However, Apple had sold everything on iTunes through an “agency model”: the manufacturer set the price, from which Apple took a 30 per cent cut. So now the publisher could ensure that the book sold at, say, $14.99, from which Apple took 30 per cent. Yes, the publisher, and the author – whom we shall discuss later – earned less (the publisher got $10.50), but it was worth taking the hit in order to preserve the perceived value of ebooks. Otherwise, Amazon would keep slashing prices until there was no publishing industry left. Publishers negotiated agency deals with Apple, and then some of them went to Amazon and insisted that Amazon switch to the agency model, too.

These deals looked highly suspicious to the US department of justice, which in 2012 sued five of the six biggest publishers in the country for collusion. The European Commission, too, investigated agency pricing in the European Economic Area. Offices were raided and computers seized. Unfortunately, the late Apple boss Steve Jobs aided the regulators’ case, telling his biographer Walter Isaacson in an unguarded moment: “We told the publishers, ‘We’ll go to the agency model, where you set the price, and we get our 30 per cent, and yes, the customer pays a little more, but that’s what you want anyway . . .’ They went to Amazon and said, ‘You’re going to sign an agency contract or we’re not going to give you the books.’”

This did not look good. In both the UK and the US, the big publishers – while furiously denying that they had done anything wrong – nevertheless reached settlements with the authorities, agreeing to renegotiate contracts; in the US, publishers have paid more than $160m (£98m) to consumers to make up for the higher prices charged while agency deals were in place. But Apple fought on, and lost. Passing judgment in July, Judge Denise Cote of the federal district court in Manhattan was scathing: “With Apple’s active encouragement and assistance, the Publisher Defendants agreed to work together to eliminate retail price competition and raise ebook prices, and again with Apple’s knowing and active participation, they brought their scheme to fruition . . . Through their conspiracy they forced Amazon (and other resellers) to relinquish retail pricing authority and then they raised retail ebook prices. Those higher prices were not the result of regular market forces but of a scheme in which Apple was a full participant.” Apple has lodged an appeal, bringing to mind again the phrase concerning slim and none.

Amazon, above the fray, was the victor in these cases, though in negotiating new contracts with publishers it does find itself landed with some restrictions on its ability to discount. While governments may amend the rules that allow Amazon to pay only minimal corporation tax, no authority is going to curb competitive aggression. The authorities are unconcerned about what share Amazon takes of the book market, provided book buyers continue to have choices. Those choices include bookstores at Apple and Google, which are unlikely to persuade anyone that they require protection from a predatory rival.

Of course, Tim Godfray was talking about protection not for the likes of Apple and Google, but for businesses that may achieve not even a six-figure turnover in a year. Independent bookshops were struggling before Amazon came along, however, in part because of their inability to compete with chains such as Waterstones, and in part because of trends – superstores, rates and rents, parking restrictions, and so on – which have been hostile to so many high-street businesses, and which prompted the government to call in the retail expert Mary Portas to see if she could conceive a plan to revitalise them. Chain booksellers were growing, but largely by opening branches and merging with each other. It was a bubble, and Amazon’s market share was still relatively modest when Waterstones and the book/stationery/enter­tainment retailer WHSmith became the only chains left standing.

The best bookshops have found ways to remain attractive. They stage readings and festivals. They incorporate coffee shops. They recommend distinctive titles that you don’t see on the front tables at Waterstones or Smith’s, or on the Amazon home page. Mr B’s in Bath offers “reading spas”: one-on-one chats in its “bibliotherapy room”. It has also commissioned bespoke editions of books. Daunt Books has its own small publishing operation, which has brought back into print the kinds of literature that a chain of shops in well-heeled areas of London can sell. In September, the Booksellers Association launched an initiative called Books Are My Bag, which consists of only a slogan and a supply of canvas bags, but which the BA hopes will gain enough currency – as “Go to work on an egg” once did – to promote the joys of browsing and buying in real bookshops.

That Amazon has taken business away from these shops – well, that’s competition, and, as we’ve seen, we are going to have to live with it. The other day, I decided I wanted to read John Mullan’s What Matters in Jane Austen?. I looked on Amazon and I looked on the rival ebookseller Kobo; Amazon’s price was £4.63 and Kobo’s was £7.07. I bought the Amazon Kindle edition, with a single click; when I switched on my tablet, my book was there. My nearest bookshop, a Waterstones, is a 20-minute bus ride away, and it is not always guaranteed to have the book I want. If it does, it may be selling it at the recommended retail price – £8.99, in this case.

Price and convenience point me towards Amazon. I enjoy reading ebooks, and if the print equivalents are bulky and have small type, I prefer to read them on a lightweight device with adjustable fonts. I love browsing in bookshops, but I love browsing online, too, and get a small thrill every time I make an order that enables an instant download or a posted parcel. Furthermore, Amazon’s service is superb. Its website is the best, its Kindle Paperwhite is by reputation the best e-reading device of its kind, and its prices are usually the lowest.

My point is that this is what the overwhelming majority of Amazon’s customers feel about the company. Yes, we disapprove of its tax avoidance, but we have learned that every multinational will behave in this way, given the opportunity. It is for governments to sort out. But giving publishers a hard time? Why should we care about that? And if we felt that Amazon did not deserve to take business from the terrestrial bookshops, we would click on those Buy buttons less frequently.

The consolidation of power in retailing is in part responsible for a consolidation of power in publishing. Penguin and Random House confirmed their merger this summer, creating the largest publisher in the world; industry insiders expect there to be further mergers at the top – Simon & Schuster and HarperCollins are names that are often put together. Penguin Random House, which is home to a significant number of the most celebrated authors in the English language, has clawed back some of the negotiating power that Amazon had assumed. The company also believes that, thanks to “efficiencies” (cost-cutting) in its merged operations, it will have more resources to put into the acquisition and promotion of books and into “discoverability”, a buzzword that has become an obsession as book buyers have moved online. How do you ensure that people see your books? Publishers are desperate to be the facilitators of this process. They do not want Amazon to control it.

In addition to the power of Amazon, they have three significant fears. The first is piracy. Once, pirating a book involved printing it. Now, all you have to do is copy a computer file and you have an edition that is no different from the authorised version. The pirates have created jobs in the book industry: the leading publishers employ people whose sole responsibility is to trawl the internet searching for illegal editions. Fear of piracy is responsible for digital rights management, the annoying code that prevents you from reading an Amazon ebook, say, on anything other than a Kindle-enabled device. It also lies behind publishers’ wariness about allowing their ebooks to be lent through libraries.

The new wave of digital entrepreneurs is, on the whole, sceptical about copyright, in a bedrock of industries ranging from publishing to football (think of the importance to football of TV and image rights income). Google, which no government can ignore, scanned millions of in-copyright books without bothering to ask the rights-holders’ permission. The British government is planning to introduce copyright exceptions following a 2012 report into intellectual property by a panel under the leadership of Professor Ian Hargreaves; its draft proposals have alarmed bodies including the Society of Authors and the Publishers Association. “Fair dealing”, which Google cites in its defence, may be fair to the people who want to use the material, but is less fair to those who created it.

However, publishers could relax a little. People want to get things for free or cheaply, but they are also happy to pay what they see as fair prices. Getting most of my books free when I was young did not dissuade me from becoming a book buyer, and listening to pirated music did not prevent my purchasing records. My daughters, who no doubt consume illegally shared material, spend fortunes through iTunes. When I began reporting on the book industry, Delia Smith featured in ubiquitous ads for book clubs that were offering her Complete Cookery Course for a nugatory sum. Yet the same book, at full price, appeared in the bestseller list week after week. Free or cheap does not necessarily undermine paid-for. Imagining an ideal world in which every consumer would pay a recommended price for every cultural item is futile.

The second significant fear, though, is the lowering of the recommended prices that consumers are prepared to pay. The average price paid for an ebook in the UK is about £3. The average price paid for a bestselling paperback novel is about £4.20, and the average price paid for a bestselling hardback novel is about £11. As ebooks take a larger share of the market, will publishers suffer a decline in revenues, and will they find, as booksellers did in the 1990s, that the only way they can grow is through mergers? Penguin Random may be an early symptom of such a trend.

The third fear is of becoming irrelevant. The rise of the publishing conglomerates has not been as hostile to independent houses as many had feared, partly because distribution has become more egalitarian (smaller houses have more chance of getting their authors discovered now, through Amazon and other sites, than when their only way of selling was by begging booksellers’ support) and partly because there are so many successful titles that the conglomerates miss or never see. But all publishers must be aware that authors have what appears to be the increasingly viable choice of self-publishing. Since internet distribution has vastly reduced the cost and difficulty of getting a manuscript into book form, self-publishing has lost its reputation as exclusively the last resort of the hopeless and deluded. Every week, it seems, one reads a story of an unknown author who has sold tens of thousands of copies of his or her self-published books, particularly through Amazon. Amanda Hocking, an author of paranormal romances, earned $2.5m from Amazon sales in under two years; even more famously, E L James first published online the story that became the Fifty Shades of Grey trilogy.

Publishers hope that the self-publishing world can become a training ground for writers, and last year Penguin’s parent company bought Author Solutions, the world’s largest self-publishing service (which at that point had a mixed reputation). Hocking and James went on to sign conventional publishing deals. Yet some self-publishers have not, while others have signed print book deals but retained their ebook rights. Few authors can have failed to notice that self-publishing offers higher royalties. Kindle Direct Publishing can pay up to 70 per cent of the returns from sales, and offers at least 35 per cent. Until recently, publishers were distributing to authors just 15 per cent of the returns; only under pressure, and not universally, have they raised these royalty rates to 25 per cent.

While publishers may have good arguments to explain why their royalties should remain at this level, they have not succeeded in making their case to authors and agents. At present, most authors crave the imprimatur, the editorial expertise, the marketing and the distribution that established imprints can provide. But publishers’ claims that they “add value” to the publishing process – value that self-publishing services cannot replicate – are not as incontrovertible as they once seemed.

In the ways described, the disruption that Amazon has caused the book industry has been welcome for readers and authors. Culturally, the picture is more confused. Some authors who might never have seen their books in print a few years ago have thrived through self-publishing, but others – who enjoyed a brief period when advances rose, as the big publishers grew bigger and the book chains expanded – are in trouble. They can no longer afford to spend a year or longer writing books, because no one will pay them to do so. Fashions are changing quickly, and many authors who were under contract a few years ago can no longer get their manuscripts accepted.

It is a harsh world, but whether it is barbaric, as some disillusioned authors believe, is debatable. Pitifully low sales of literary fiction are not a new phenomenon: George Orwell’s early novels sold only a few hundred copies each. When one reads of the long exile from print of Barbara Pym in the 1960s and 1970s after Tom Maschler at Jonathan Cape had decided that her novels were hopelessly old-fashioned, one recognises a story with contemporary resonances. It is very hard to determine whether an industry that produces more than 100,000 titles a year is lowering its standards. Regular reading of the literary pages, and scanning of book-prize shortlists, suggests that there remains plenty of quality about. I once heard someone say that Paul McCartney, an acquaintance of his, was “as nice as you’d expect him to be”. Amazon is certainly no nicer than you would expect a Wall Street-quoted giant with a market capitalisation of $135bn to be. But I don’t feel guilty about being its customer.

Nicholas Clee, a former editor of the Bookseller magazine, is the joint editor of BookBrunch, a book industry news service

Nicholas Clee, the NS food columnist, is the author of Don’t Sweat the Aubergine: What Works in the Kitchen and Why (Short Books). He is a former editor of The Bookseller, and writes about books for papers including the Times, Guardian, and Times Literary Supplement.
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Why Jeremy Corbyn is a new leader for the New Times

In an inspired election campaign, he confounded his detractors and showed that he was – more than any other leader – in tune with the times.

There have been two great political turning points in postwar Britain. The first was in 1945 with the election of the Attlee government. Driven by a popular wave of determination that peacetime Britain would look very different from the mass unemployment of the 1930s, and built on the foundations of the solidaristic spirit of the war, the Labour government ushered in full employment, the welfare state (including the NHS) and nationalisation of the basic industries, notably coal and the railways. It was a reforming government the like of which Britain had not previously experienced in the first half of the 20th century. The popular support enjoyed by the reforms was such that the ensuing social-democratic consensus was to last until the end of the 1970s, with Tory as well as Labour governments broadly operating within its framework.

During the 1970s, however, opposition to the social-democratic consensus grew steadily, led by the rise of the radical right, which culminated in 1979 in the election of Margaret Thatcher’s first government. In the process, the Thatcherites redefined the political debate, broadening it beyond the rather institutionalised and truncated forms that it had previously taken: they conducted a highly populist campaign that was for individualism and against collectivism; for the market and against the state; for liberty and against trade unionism; for law and order and against crime.

These ideas were dismissed by the left as just an extreme version of the same old Toryism, entirely failing to recognise their novelty and therefore the kind of threat they posed. The 1979 election, followed by Ronald Reagan’s US victory in 1980, began the neoliberal era, which remained hegemonic in Britain, and more widely in the West, for three decades. Tory and Labour governments alike operated within the terms and by the logic of neoliberalism. The only thing new about New Labour was its acquiescence in neoliberalism; even in this sense, it was not new but derivative of Thatcherism.

The financial crisis of 2007-2008 marked the beginning of the end of neoliberalism. Unlike the social-democratic consensus, which was undermined by the ideological challenge posed by Thatcherism, neoliberalism was brought to its knees not by any ideological alternative – such was the hegemonic sway of neoliberalism – but by the biggest financial crisis since 1931. This was the consequence of the fragility of a financial sector left to its own devices as a result of sweeping deregulation, and the corrupt and extreme practices that this encouraged.

The origin of the crisis lay not in the Labour government – complicit though it was in the neoliberal indulgence of the financial sector – but in the deregulation of the banking sector on both sides of the Atlantic in the 1980s. Neoliberalism limped on in the period after 2007-2008 but as real wages stagnated, recovery proved a mirage, and, with the behaviour of the bankers exposed, a deep disillusionment spread across society. During 2015-16, a populist wave of opposition to the establishment engulfed much of Europe and the United States.

Except at the extremes – Greece perhaps being the most notable example – the left was not a beneficiary: on the contrary it, too, was punished by the people in the same manner as the parties of the mainstream right were. The reason was straightforward enough. The left was tarnished with the same brush as the right: almost everywhere social-democratic parties, albeit to varying degrees, had pursued neoliberal policies. Bill Clinton and Tony Blair became – and presented themselves as – leaders of neoliberalism and as enthusiastic advocates of a strategy of hyper-globalisation, which resulted in growing inequality. In this fundamental respect these parties were more or less ­indistinguishable from the right.

***

The first signs of open revolt against New Labour – the representatives and evangelists of neoliberal ideas in the Labour Party – came in the aftermath of the 2015 ­election and the entirely unpredicted and overwhelming victory of Jeremy Corbyn in the leadership election. Something was happening. Yet much of the left, along with the media, summarily dismissed it as a revival of far-left entryism; that these were for the most part no more than a bunch of Trots. There is a powerful, often overwhelming, tendency to see new phenomena in terms of the past. The new and unfamiliar is much more difficult to understand than the old and familiar: it requires serious intellectual effort and an open and inquiring mind. The left is not alone in this syndrome. The right condemned the 2017 Labour Party manifesto as a replica of Labour’s 1983 manifesto. They couldn’t have been more wrong.

That Corbyn had been a veteran of the far left for so long lent credence to the idea that he was merely a retread of a failed past: there was nothing new about him. In a brilliant election campaign, Corbyn not only gave the lie to this but also demonstrated that he, far more than any of the other party leaders, was in tune with the times, the candidate of modernity.

Crises, great turning points, new conjunctures, new forms of consciousness are by definition incubators of the new. That is one of the great sources of their fascination. We can now see the line of linkage between the thousands of young people who gave Corbyn his overwhelming victory in the leadership election in 2015 and the millions of young people who were enthused by his general election campaign in 2017. It is no accident that it was the young rather than the middle-aged or the seniors who were in the vanguard: the young are the bearers and products of the new, they are the lightning conductors of change. Their elders, by contrast, are steeped in old ways of thinking and doing, having lived through and internalised the values and norms of neoliberalism for more than 30 years.

Yet there is another, rather more important aspect to how we identify the new, namely the way we see politics and how politics is conceived. Electoral politics is a highly institutionalised and tribal activity. There have been, as I argued earlier, two great turning points in postwar politics: the social-democratic era ushered in by the 1945 Labour government and the neoliberal era launched by the Tory government in 1979.

The average Tory MP or activist, no doubt, would interpret history primarily in terms of Tory and Labour governments; Labour MPs and activists would do similarly. But this is a superficial reading of politics based on party labels which ignores the deeper forces that shape different eras, generate crises and result in new paradigms.

Alas, most political journalists and columnists are afflicted with the same inability to distinguish the wood (an understanding of the deeper historical forces at work) from the trees (the day-to-day manoeuvring of parties and politicians). In normal times, this may not be so important, because life continues for the most part as before, but at moments of great paradigmatic change it is absolutely critical.

If the political journalists, and indeed the PLP, had understood the deeper forces and profound changes now at work, they would never have failed en masse to rise above the banal and predictable in their assessment of Corbyn. Something deep, indeed, is happening. A historical era – namely, that of neoliberalism – is in its death throes. All the old assumptions can no longer be assumed. We are in new territory: we haven’t been here before. The smart suits long preferred by New Labour wannabes are no longer a symbol of success and ambition but of alienation from, and rejection of, those who have been left behind; who, from being ignored and dismissed, are in the process of moving to the centre of the political stage.

Corbyn, you may recall, was instantly rejected and ridiculed for his sartorial style, and yet we can now see that, with a little smartening, it conveys an authenticity and affinity with the times that made his style of dress more or less immune from criticism during the general election campaign. Yet fashion is only a way to illustrate a much deeper point.

The end of neoliberalism, once so hegemonic, so commanding, is turning Britain on its head. That is why – extraordinary when you think about it – all the attempts by the right to dismiss Corbyn as a far-left extremist failed miserably, even proved counterproductive, because that was not how people saw him, not how they heard him. He was speaking a language and voicing concerns that a broad cross-section of the public could understand and identify with.

***

The reason a large majority of the PLP was opposed to Corbyn, desperate to be rid of him, was because they were still living in the neoliberal era, still slaves to its ideology, still in thrall to its logic. They knew no other way of thinking or political being. They accused Corbyn of being out of time when in fact it was most of the PLP – not to mention the likes of Mandelson and Blair – who were still imprisoned in an earlier historical era. The end of neoliberalism marks the death of New Labour. In contrast, Corbyn is aligned with the world as it is rather than as it was. What a wonderful irony.

Corbyn’s success in the general election requires us to revisit some of the assumptions that have underpinned much political commentary over the past several years. The turmoil in Labour ranks and the ridiculing of Corbyn persuaded many, including on the left, that Labour stood on the edge of the abyss and that the Tories would continue to dominate for long into the future. With Corbyn having seized the political initiative, the Tories are now cast in a new light. With Labour in the process of burying its New Labour legacy and addressing a very new conjuncture, then the end of neoliberalism poses a much more serious challenge to the Tories than it does the Labour Party.

The Cameron/Osborne leadership was still very much of a neoliberal frame of mind, not least in their emphasis on austerity. It would appear that, in the light of the new popular mood, the government will now be forced to abandon austerity. Theresa May, on taking office, talked about a return to One Nation Toryism and the need to help the worst-off, but that has never moved beyond rhetoric: now she is dead in the water.

Meanwhile, the Tories are in fast retreat over Brexit. They held a referendum over the EU for narrowly party reasons which, from a national point of view, was entirely unnecessary. As a result of the Brexit vote, the Cameron leadership was forced to resign and the Brexiteers took de facto command. But now, after the election, the Tories are in headlong retreat from anything like a “hard Brexit”. In short, they have utterly lost control of the political agenda and are being driven by events. Above all, they are frightened of another election from which Corbyn is likely to emerge as leader with a political agenda that will owe nothing to neoliberalism.

Apart from Corbyn’s extraordinary emergence as a leader who understands – and is entirely comfortable with – the imperatives of the new conjuncture and the need for a new political paradigm, the key to Labour’s transformed position in the eyes of the public was its 2017 manifesto, arguably its best and most important since 1945. You may recall that for three decades the dominant themes were marketisation, privatisation, trickle-down economics, the wastefulness and inefficiencies of the state, the incontrovertible case for hyper-globalisation, and bankers and financiers as the New Gods.

Labour’s manifesto offered a very different vision: a fairer society, bearing down on inequality, a more redistributive tax system, the centrality of the social, proper funding of public services, nationalisation of the railways and water industry, and people as the priority rather than business and the City. The title captured the spirit – For the Many Not the Few. Or, to put in another way, After Neoliberalism. The vision is not yet the answer to the latter question, but it represents the beginnings of an answer.

Ever since the late 1970s, Labour has been on the defensive, struggling to deal with a world where the right has been hegemonic. We can now begin to glimpse a different possibility, one in which the left can begin to take ownership – at least in some degree – of a new, post-neoliberal political settlement. But we should not underestimate the enormous problems that lie in wait. The relative economic prospects for the country are far worse than they have been at any time since 1945. As we saw in the Brexit vote, the forces of conservatism, nativism, racism and imperial nostalgia remain hugely powerful. Not only has the country rejected continued membership of the European Union, but, along with the rest of the West, it is far from reconciled with the new world that is in the process of being created before our very eyes, in which the developing world will be paramount and in which China will be the global leader.

Nonetheless, to be able to entertain a sense of optimism about our own country is a novel experience after 30 years of being out in the cold. No wonder so many are feeling energised again.

This article first appeared in the 15 June 2017 issue of the New Statesman, Corbyn: revenge of the rebel

Martin Jacques is the former editor of Marxism Today. 

This article first appeared in the 15 June 2017 issue of the New Statesman, Corbyn: revenge of the rebel

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