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Our only hope is to talk

Israel must speak to the Palestinians: it is the sole strategy by which Israelis themselves will fin

Like the pairs of foxes in the biblical story of Samson, tied together by the tail with a flaming torch between them, we and the Palestinians are dragging each other into disaster, despite our disparate strength, and even when we try very hard to separate. And as we do, we burn the other who is bound to us, our double, our nemesis, ourselves.

So, in the midst of the wave of nationalist invective now seeping Israel, it would not hurt to keep in mind that this latest military operation in Gaza is, when all is said and done, just one more way-station on a road paved with fire and violence and hatred. On this road you sometimes win and you sometimes lose, but it leads in the end to ruin.

As we Israelis rejoice at how this campaign has rectified Israel's military failures in the Second Lebanon War, we should listen to the voice that says that the Israel Defence Forces' achievements are not indubitable proof that Israel was right to set out on an operation of such huge proportions; it certainly does not justify the way our army pursued its mission. The IDF's achievements confirm only that Israel is much stronger than Hamas, and that under certain circumstances it can be very tough and cruel.

But when the operation ends completely, and when the magnitude of the killing and devastation become apparent to all, perhaps Israeli society will, for a brief moment, put a hold on its sophisticated mechanisms of repression and self-righteousness. And then perhaps a lesson of some sort will get etched into Israeli consciousness. Maybe then we will finally understand something deep and fundamental - that our conduct here in this region has, for a long time, been flawed, immoral and unwise. In particular, it time and again fans the flames that consume us.

The Palestinians cannot be absolved of culpability for their errors and crimes. To do so would be to show contempt and condescension towards them, as if they were not rational adults responsible for each of their mistakes and oversights. True, the inhabitants of the Gaza Strip were in large measure "strangled" by Israel, but they, too, had other options, other ways of voicing and displaying their plight. Firing thousands of rockets at innocent civilians in Israel was not the only choice they had. We must not forget that. We must not be forgiving of the Palestinians, as if it goes without saying that when they are in distress, their almost automatic response must be violence.

But even when the Palestinians act with reckless belligerence - with suicide bombings and Qassam missiles - Israel, which is many times stronger than they are, has tremendous power to control the level of violence in the conflict as a whole. As such, it can also have a profound influence on calming the conflict and extricating both sides from its cycle of violence. This most recent military action indicates that there does not seem to be anyone in the Israeli leadership who grasps that.

After all, the day will come when we will want to try to heal the wounds that we have just now inflicted. How can that day come if we do not understand that our military might cannot be our principal tool for establishing our presence here, opposite and with the Arab nations? How can that day come if we do not grasp the gravity of the responsibility imposed on us by our fateful ties and connections, past and future, with the Palestinian nation in the West Bank, Gaza Strip and in Israel itself?

When the clouds of coloured smoke clear - the smoke of the politicians' declarations of comprehensive, decisive victory, when we realise what this operation has really achieved, and how large the gap is between those declarations and what we really need to know in order to live a normal life in this region; when we acknowledge that an entire nation eagerly hypnotised itself, because it needed so badly to believe that Gaza would cure its Lebanon malady - then we can turn our attention to those who time and again have incited Israeli society's hubris and euphoria of power. To those who have, for so many years, taught us to scorn the belief in peace, and any hope for any change at all in our relations with the Arabs. To those who have persuaded us that the Arabs understand only force, and that we thus can speak to them only in that language. Since we have spoken that way to them so often, and only that way, we have forgotten that there are other languages that can be used to speak with other human beings, even enemies, even enemies as bitter as Hamas - languages that are mother tongues to us, the Israelis, no less than the language of the airplane and the tank.

To talk to the Palestinians. That must be the central conclusion we reach from this last, bloody round of war. To talk even with those who do not recognise our right to exist here. Instead of ignoring Hamas now, it would be best to take advantage of the new situation and enter into a dialogue, in order to enable an accommodation with the Palestinian people as a whole. To talk, in order to understand that reality is not just the hermetically-sealed story that we and the Palestinians have been telling ourselves for generations, the story that we are imprisoned within, no small part of which consists of fantasies, wishes, and nightmares. To talk in order to devise, within this opaque, unhearing reality, an opportunity for speech, for that alternative, so scorned and forlorn today, for which, in the tempest of war, there is almost no place, no hope, no believers.

To talk as a well-considered strategy, to initiate dialogue, to insist on speech, to talk to the wall, to talk even if it seems fruitless. In the long term, this stubbornness may do more, far more, for our future than hundreds of airplanes dropping bombs on a city. To talk out of the understanding, born of the recent horrors we have seen, that the destruction we, each people in its own way, are able to cause each other is a huge and corrupting force. If we surrender to it and its logic, it will, in the end, destroy us all.

To talk, because what has taken place in the Gaza Strip during the past three weeks places before us, in Israel, a mirror that reflects us a face that would horrify us, were we to gaze on it for one moment from the outside, or if we were to see it on another nation. We would understand that our victory is no real victory, and that the war in Gaza has not brought us any healing in that place where we desperately need a cure.

David Grossman is an Israeli author and film-maker

This article first appeared in the 02 February 2009 issue of the New Statesman, Interview: Alistair Darling

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 02 February 2009 issue of the New Statesman, Interview: Alistair Darling