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Socialism's comeback

At the beginning of the century, the chances of socialism making a return looked close to zero. Yet now, all around Europe, the red flag is flying again.

 

"If socialism signifies a political and economic system in which the government controls a large part of the economy and redistributes wealth to produce social equality, then I think it is safe to say the likelihood of its making a comeback any time in the next generation is close to zero," wrote Francis Fukuyama, author of The End of History, in Time magazine in 2000.

He should take a trip around Europe today.

Make no mistake, socialism - pure, unadulterated socialism, an ideology that was taken for dead by liberal capitalists - is making a strong comeback. Across the continent, there is a definite trend in which long-established parties of the centre left that bought in to globalisation and neoliberalism are seeing their electoral dominance challenged by unequivocally socialist parties which have not.

The parties in question offer policies which mark a clean break from the Thatcherist agenda that many of Europe's centre-left parties have embraced over the past 20 years. They advocate renationalisation of privatised state enterprises and a halt to further liberalisation of the public sector. They call for new wealth taxes to be imposed and for a radical redistribution of wealth. They defend the welfare state and the rights of all citizens to a decent pension and free health care. They strongly oppose war - and any further expansion of Nato.

Most fundamentally of all, they challenge an economic system in which the interests of ordinary working people are subordinated to those of capital.

Nowhere is this new leftward trend more apparent than in Germany, home to the meteoric rise of Die Linke ("The Left"), a political grouping formed only 18 months ago - and co-led by the veteran socialist "Red" Oskar Lafontaine, a long-standing scourge of big business. The party, already the main opposition to the Christian Democrats in eastern Germany, has made significant inroads into the vote for the Social Democratic Party (SPD) in elections to western parliaments this year, gaining representation in Lower Saxony, Hamburg and Hesse. Die Linke's unapologetically socialist policies, which include the renation alisation of electricity and gas, the banning of hedge funds and the introduction of a maximum wage, chime with a population concerned at the dismantling of Germany's mixed economic model and the adoption of Anglo-Saxon capitalism - a shift that occurred while the SPD was in government.

An opinion poll last year showed that 45 per cent of west Germans (and 57 per cent of east Germans) consider socialism "a good idea"; in October, another poll showed that Germans overwhelmingly favour nationalisation of large segments of the economy. Two-thirds of all Germans say they agree with all or some of Die Linke's programme.

It's a similar story of left-wing revival in neighbouring Holland. There the Socialist Party of the Netherlands (SP), which almost trebled its parliamentary representation in the most recent general election (2006), and which made huge gains in last year's provincial elections, continues to make headway.

Led by a charismatic 41-year-old epidemiologist, Agnes Kant, the SP is on course to surpass the Dutch Labour Party, a member of the ruling conservative-led coalition, as the Netherlands' main left-of centre grouping.

The SP has gained popularity by being the only left-wing Dutch parliamentary party to campaign for a "No" vote during the 2005 referendum on the EU constitutional treaty and for its opposition to large-scale immigration, which it regards as being part of a neoliberal package that encourages flexible labour markets.

The party calls for a society where the values of "human dignity, equality and solidarity" are most prominent, and has been scathing in its attacks on what it describes as "the culture of greed", brought about by "a capitalism based on inflated bonuses and easy money". Like Die Linke, the SP campaigns on a staunchly anti-war platform - demanding an end to Holland's role as "the US's lapdog".

In Greece, the party on the up is the Coalition of the Radical Left (SYRIZA), the surprise package in last year's general election. As public opposition to the neoliberal econo mic policies of the ruling New Democracy government builds, SYRIZA's opinion-poll ratings have risen to almost 20 per cent - putting it within touching distance of PASOK, the historical left-of-centre opposition, which has lurched sharply to the right in recent years. SYRIZA is particularly popular with young voters: its support among those aged 35 and under stands at roughly 30 per cent in the polls, ahead of PASOK.

In Norway, socialists are already in power; the ruling "red-green" coalition consists of the Socialist Left Party, the Labour Party and the Centre Party. Since coming to power three years ago, the coalition - which has been labelled the most left-wing government in Europe, has halted the privatisation of state-owned companies and made further development of the welfare state, public health care and improving care for the elderly its priorities.

The success of such forces shows that there can be an electoral dividend for left-wing parties if voters see them responding to the crisis of modern capitalism by offering boldly socialist solutions. Their success also demonstrates the benefits to electoral support for socialist groupings as they put aside their differences to unite behind a commonly agreed programme.

For example, Die Linke consists of a number of internal caucuses - or forums - including the "Anti-Capitalist Left", "Communist Platform" and "Democratic Socialist Forum". SYRIZA is a coalition of more than ten Greek political groups. And the Dutch Socialist Party - which was originally called the Communist Party of the Netherlands, has successfully brought socialists and communists together to support its collectivist programme.

It is worth noting that those European parties of the centre left which have not fully embraced the neoliberal agenda are retaining their dominant position. In Spain, the governing Socialist Workers' Party has managed to maintain its broad left base and was re-elected for another four-year term in March, with Prime Minister José Luis Rodríguez Zapatero promising a "socialist economic policy" that would focus on the needs of workers and the poor.

There are exceptions to the European continent's shift towards socialism. Despite the recent election of leftist Martine Aubry as leader of the French Socialist Party, the French left has been torn apart by divisions, at the very moment when it could be exploiting the growing unpopularity of the Sarkozy administration.

And, in Britain, despite opinion being argu ably more to the left on economic issues than at any time since 1945, few are calling for a return to socialism.

The British left, despite promising initiatives such as September's Convention of the Left in Manchester, which gathered representatives from several socialist groups, still remains fragmented and divided. The left's espousal of unrestricted or loosely controlled immigration is also, arguably, a major vote loser among working-class voters who should provide its core support. No socialist group in Britain has as yet articulated a critique of mass immigration from an anti-capitalist and anti-racist viewpoint in the way the Socialist Party of the Netherlands has.

And even if a Die Linke-style coalition of progressive forces could be built and put on a formal footing in time for the next general election, Britain's first-past-the-post system provides a formidable obstacle to change.

Nevertheless, the prognosis for socialism in Britain and the rest of Europe is good. As the recession bites, and neoliberalism is discredited, the phenomenon of unequivocally socialist parties with clear, anti-capitalist, anti-globalist messages gaining ground, and even replacing "Third Way" parties in Europe, is likely to continue.

Even in Britain, where the electoral system grants huge advantage to the established parties, pressure on Labour to jettison its commitment to neoliberal policies and to adopt a more socialist agenda is sure to intensify.

This article first appeared in the 08 December 2008 issue of the New Statesman, After the Terror

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The dark shadow

The Brexit proposal springs from panic and would certainly be terrible news for Britain’s economy – but it carries a threat even greater than that.

It cannot be said that the European ­Union is doing particularly well at this time. Its economic performance has been mostly terrible, with high unemployment and low economic expansion, and the political union itself is showing many signs of fragility. It is not hard to understand the temptation of many in Britain to call it a day and “go home”. And yet it would be a huge mistake for Britain to leave the EU. The losses would be great, and the gains quite puny. And the “home” to go back to no longer exists in the way it did when Britannia ruled the waves.

We live in a thoroughly interdependent world, nowhere more so than in Europe. The contemporary prosperity of Europe – and elsewhere, too – draws on extensive use of economic interconnections. While the unacceptable poverty and inequality that persist in much of the world, including Britain, certainly call for better-thought-out public engagement, the problems can be addressed better without getting isolated from the largest economy next door. The remarkable joint statement aired recently, by a surprisingly large number of British economists, of many different schools, that Brexit would be an enormous economic folly, reflects an appreciation of this glaring reality. Apart from trade and economic exchange with Europe itself, Britain is currently included in a large number of global agreements as a part of the European Union. Britain can do a lot – for itself and for Europe – to correct some of the big mistakes of European economic policies.

The Brexit-wallahs, if I may call the enthusiasts that (without, I hasten to add, any disrespect), sometimes respond to concerns of the kind I have been expressing with the reply that Britain can surely retain the economic interconnections with Europe, and through Europe, even without being in the European Union. “Isn’t that what Norway largely did?” Norway has certainly done well, and deserves credit for it. But the analogy does not really work, not just because Britain is a huge economy in a way Norway is not, but much more importantly because quitting is not at all the same thing as not joining. Britain’s extensive economic ties with Europe, and a great many EU trade agreements that go beyond Europe in the multilateral global economy, are well established now and disentanglement would be a very costly process – a challenge that Norway did not have to face.

But perhaps most importantly, it must be recognised that quitting is a big message to send to Europe and to the world: a message that Britain wants to move away from Europe. As four decades of economic studies have shown, signals can be dramatically important for economic relations. Conclusions will certainly be drawn on how dependable and friendly Britain can be taken to be. A jilted partner has more reason for angst than an unapproached suitor.

***

While the economic arguments against Brexit are strong, the political concerns are even stronger. The unification of Europe is an old dream. It is not quite as old as is sometimes suggested: the dream is not of classical antiquity. Alexander and other ancient Greeks were less interested in chatting with Angles, Saxons, Goths and Vikings than they were in conversing with the ancient Persians, Bactrians and Indians. Julius Caesar and Mark Antony identified more readily with the ancient Egyptians – already strongly linked with Greece and Rome – than with other Europeans located to the north of Rome and the west. But Europe went through successive waves of cultural and political integration, greatly helped by the powerful spread of Christianity, and by 1462 King George of Podebrady in Bohemia was talking about pan-European unity.

Many other invocations followed, and by the 18th century even George Washington wrote to the Marquis de Lafayette: “One day, on the model of the United States of America, a United States of Europe will come into being.”

It was, however, the sequence of the two world wars in the 20th century, with their vast shedding of European blood, that firmly established the urgency of political unity in Europe. As W H Auden wrote in early 1939, on the eve of the Second World War:

In the nightmare of the dark
All the dogs of Europe bark,
And the living nations wait,
Each sequestered in its hate . . .

His worst expectations found chilling confirmation in the years that followed.

The fear of a repeat of what Europeans had seen in these wars continued to haunt people. It is important in this context to ­appreciate that the movement for European unification began as a crusade for political unity, rather than for an economic union – not to mention a financial unification, or a common currency. None of the follies that make the economics of the European Union so problematic arose from that vision. The remedies that are needed (on which I have written elsewhere: see “What happened to Europe?”, the New Republic, 2 August 2012) would need policy changes and institutional reforms, but not any rejection of the idea behind a united Europe.

The birth of the European ­federalist movement was motivated strongly by the desire for political unity, free from self-destructive wars, as can be seen in the arguments presented in the Ventotene Declaration of 1941 and the Milan Declaration of 1943. There was, of course, no hostility to economic integration (and its merits were understood), but the priority was not on banking and currency, nor even on trade and exchange, but on peace and goodwill and a gradually evolving political and social integration. That political unification has fallen way behind the ill-thought-out financial moves is a sad fact. The EU’s policy priorities need to be scrutinised and reworked – a process to which Britain can contribute, and from which it can benefit along with other Europeans.

***

No wars, of course, will result from Brexit, yet that does not mean that the sense of rejection and distancing will have no adverse impact on the way Europeans see each other. That the dislike of having other Europeans settling in Britain is a major reason given in favour of Brexit – playing up the fear of “our” jobs, “our” economic opportunities being taken by “them” – makes this human distancing even more poignant. It is hard not to miss the recognition that this fear, exaggerated by dubious use of numbers, has been fanned politically by the enthusiasts for Brexit. And that adds to the intensification of relational adversity. Being “sequestered in hate” is a bit of a nightmare in its own right, even without the open violence which followed that terrible nightmare, shortly after Auden wrote his poem.

The EU did not create the idea of ­Europe, just as the idea of India was not a ­product of the nationalist movement (even though an otherwise brilliant European, Winston Churchill, failed to see any more unity in India than could be found around the Equator). The message of Brexit would have huge implications, given where the world is at this time. The Polish philosopher Leszek Koakowski has rightly asked, “If we would like the EU to be more than just a place for money temples of banks and the stock exchange, but also a place where material welfare is surrounded by art and is used to help the poor, if we want freedom of speech, which can be so easily misused to propagate lies and evil, as well as be used for inspiring works – then what is to be done?” When, at the end of the Second World War and after the defeat of Nazi Germany, Britain established its National Health Service and laid the foundations of a welfare state, it was inspired not merely by ideas originating in this country, but by thoughts that had sprung up across Europe, including the ideas of Kant and Marx and even Bismarck, in the country just defeated. There was no conflict between innovative British ideas and broader European thinking, nor between British and European identities (there is no reason for us to be incarcerated in one identity – one affiliation – per head).

The proposal of Brexit is born out of panic, and it is as important to see that the reasoning behind the panic is hasty and weak as it is to recognise that wisdom is rarely born of fright. In his Nexus Lecture, called “The Idea of Europe”, given a dozen years ago, George Steiner wondered about the prospects for Europe playing a leadership role in the pursuit of humanism in the world. He argued: “If it can purge itself of its own dark heritage, by confronting that heritage unflinchingly, the Europe of Montaigne and Erasmus, of Voltaire and Immanuel Kant may, once again, give guidance.” Brexit would certainly be a bad economic move, but the threat that it carries is very much larger than that.

Amartya Sen is Professor of Economics and Philosophy at Harvard and won the 1998 Nobel Prize in Economics.

This article first appeared in the 09 June 2016 issue of the New Statesman, A special issue on Britain in Europe