Fingers on buzzwords

The election campaign hasn’t been all surface effects. There’s been a bit of philosophy at times, to

Modern politicians often sound as if they are speaking the same desiccated, drearily technocratic language. That has been true for much of this campaign, but, for all that, there have been some conceptual and rhetorical innovations, and even phrases that appear to be the freshly minted coinage of spin doctors and campaign managers turn out to be made of older metal than we might have expected.

The big society

David Cameron's big idea of the campaign is the "big society". This was launched with some fanfare at the end of March at an event in London, and made it into the Conservative manifesto. Three weeks later, it was being buried by Cameron's colleagues, one of whom said, "We need to turn Oliver Letwin's Hegelian dialectic into voter-friendly stuff." (Letwin, chairman of the Conservative Research Department, has a PhD in philosophy.)
That shadow minister meant to dismiss the idea, but in doing so he revealed a finer appre­ciation of the philosophical antecedents of the "big society" than he might have wanted to admit to. For what Hegel called, in his Philosophy of Right, "civil society" - the stage "which intervenes between the family and the state" - looks very much like the network of voluntary organisations to which the Tories propose to "redistribute power" as they seek to weaken the power of Labour's big state.

Little platoons

There's no reference to Hegel in the Tory manifesto, but there is an allusion to one of the founding fathers of conservative thought, Edmund Burke. The "institutional building blocks of the Big Society", the document reads, "[are] the 'little platoons' of civil society".

“Little platoons" is a phrase that occurs in Burke's Reflections on the Revolution in France (1790), the classic expression of conservative scepticism about large-scale attempts to transform society in the image of abstract ideals. The Tories today use it to refer to the local associations that would go to form a "broad culture of responsibility, mutuality and obligation".

The problem is that, for Burke, little platoons weren't groups that you volunteer to join; they were the "social subdivisions" into which you are born - the kind of traditionalism you would have thought Cameron's rebranded "progressive" Conservatives would want to avoid.

Communities

The Conservatives have promised to create an army of "community organisers", an idea with a somewhat less predictable ancestry: it derives from Saul Alinsky, denounced by the ultra-conservative commentator Melanie Phillips as an "extreme" leftist. Alinsky was a formative influence on Barack Obama.

Labour and the Liberal Democrats are as enthusiastic as the Conservatives about "communities". In a pamphlet published by the Fabian Society on 26 April, entitled Why the Right Is Wrong, Gordon Brown wrote that "liberty entails . . . engagement in the community, not shutting oneself off in a totally private sphere", a formulation whose debt to the Edwardian "New Liberalism" of L T Hobhouse and J A Hobson Nick Clegg would have recognised.

The communitarian inflection to much of Labour's rhetoric is a reminder, too, of the influence that the German-American social theorist Amitai Etzioni briefly enjoyed in the mid-1990s over Tony Blair.

Fairness

Etzioni's influence is also evident in the new version of Clause Four of Labour's constitution that Tony Blair imposed on the party in 1995, asserting that "the rights we enjoy reflect the duties we owe". Echoes of Etzioni's idea that "for the ship of state to progress everyone must pull the oars" can be detected in the emphasis that all three party leaders place on "fairness".

Clegg has described fairness as an "essential British value", while Cameron has frequently appealed to notions of "fair play" when invoking ordinary voters who "abide by the rules" and "do the right thing". Brown, in his Fabian pamphlet, also mentions the notion of justice-as-fairness propounded by the great American political philosopher John Rawls.

Rawls thought that the best way to work out what a just society would look like was to imagine a situation he called the "original position", in which people are ignorant of their circumstances and natural or biological endowments. If people don't know how gifted they are or what their social position is, then the distributive arrangements they settle upon won't be distorted in favour of those blessed with advantages that they didn't earn.

Equality

For Rawls, justice entails equality. Each of the three main parties' manifestos mentions the need to promote equality (for Labour, it is a "public duty") or the desirability of reducing inequality (the Lib Dems say that a fair tax system should "redistribute wealth and power to alleviate [its] worst excesses").

Most politicians talk about the need for greater "equality of opportunity", but only Brown has come close to acknowledging that Rawlsian justice requires a conception of equality rather more demanding than pallidly meritocratic bromides about "progressive ends" would suggest. "Equality of opportunity is desirable," he writes, "but it is only fully possible if we embrace fairness of outcome, too."

This may be an acknowledgement of Rawls's point that inequalities of income and wealth reflecting differences of talent or ability cannot be justified. In other words, just because you are more talented than I am, that doesn't mean you deserve greater rewards.

Progressive

Cameron has said many times that reducing inequality is one of the aims of "progressive Conservatism". He and his party remain committed, at least if their manifesto is anything to go by, to meeting the "progressive challenges of our age: making opportunity more equal [and] fighting poverty and inequality". Yet it is not immediately obvious how the Cameroons propose to square their idea of "progressivism" with their professed Burkean conservatism - at least if they are using the language of progress in any but the most banally general sense. (Naturally, it is possible that this is exactly the sense in which they are using it. However, let's apply what philosophers call the "principle of charity" and take what they say as seriously as we can.)

The problem is that since the Enlightenment genuine progressives - Marx, for instance; or social democrats such as Anthony Crosland, who assumed that Keynes had solved the problem of mass unemployment once and for all - have regarded progress as an effect of historical necessity and the clunking fist of the central state as its enabler. But today's Tories profess to believe that the role of the state is not to be the embodiment of history with a capital H, but rather to act as a stimulus to "social action" in neighbourhoods and "communities".

Redistribution of power

So talk of "progress" sits rather uneasily with the anti-statist rhetoric of the "big society" and Tory calls for the devolution of power to the "little platoons" - or, at least, to "individuals, families and neighbourhoods".

The Lib Dems have spoken a similar language; their manifesto says that a "failure to distribute power fairly between people" is at the root of
the problems Britain faces today. This is an impeccably Liberal thought, because it derives from the greatest liberal philosopher of them all, John Stuart Mill.

In his masterpiece, On Liberty, Mill wrote that one of the besetting "evils" of politics is "adding unnecessarily" to the power of government. For that reason, he recommended that the state function primarily as the "central depository" and enabler of "municipal corporations and local boards", "individuals and voluntary associations".

Mutuals

There is something of Mill in the enthusiasm displayed by all three parties for mutuals - organisations, whether public-service providers or private firms, which are owned by their employees. Labour's commitment to reorganising public services using mutuals is a reminder
of an underappreciated strand in the party's tradition: the "guild socialism" of G D H Cole, which took the depredations of unaccountable power as seriously as it did the injustices of capitalism.

The "contract with the voters" that Cameron launched in the last week of the campaign attempts to speak a similar language of "accountability", while the Tory manifesto says that the employee-led co-operatives that public-sector workers will be encouraged to form will result in the "most significant shift in power from the state to working people since the sale of council houses in the 1980s".

The echo in that phrase of Labour's avowedly "socialist" manifesto for the 1974 general election, which promised to bring about a "fun­damental and irreversible shift in the balance of wealth and power in favour of working people and their families", was, one assumes, unintentional.

Broken society

If Cameron's contract requires greater "accountability" on the part of the state, it also demands much of the electorate - that it work with the government to repair the "broken society". Poverty, family breakdown and welfare dependency are all symptoms of brokenness in the Tories' diagnosis of our predicament.

The principal influence on this strand of Conservative rhetoric has been the work of the former party leader Iain Duncan Smith and his think tank, the Centre for Social Justice, which has sought to restore the kind of One-Nation Toryism that was suffocated by Thatcherism (minus a recognition, it ought to be said, that the original One-Nation Tory, Benjamin Disraeli, understood that the state had a significant role to play in repairing the fractures and fissures of industrial society).

There are echoes here, too, of Jacques Chirac's successful 1995 campaign for the French presidency, in which he promised to heal "la fracture sociale". No doubt the unreconstructedly Euro­sceptic Tories would want to keep that particular affinity quiet.

The great ignored

On the first day of the campaign, Cameron addressed a portion of the population he called the "great ignored" - "the people who grow our food, police our streets, pay their taxes and obey the law". We didn't hear much about the "great ignored" later in the campaign, possibly because the allusion that most commentators, if not voters, picked up was not to John F Ken­nedy (Cameron had shamelessly channelled Kennedy when he said, "Ask not what your government can do for you. Ask what we can do to make our country better"), but to the man JFK defeated in 1960, Richard Nixon.

In 1969, once he had finally made it into the White House, and at the height of the campus rebellion against the Vietnam war, Nixon appealed to the "silent majority of [his] fellow Americans" who weren't protesting, and who remained unembarrassed by their patriotism and conviction of "national destiny".

Jonathan Derbyshire is culture editor of the New Statesman.

Jonathan Derbyshire is Managing Editor of Prospect. He was formerly Culture Editor of the New Statesman.

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.