Egyptian opposition supporters shout slogans as they gather outside the Presidential Palace in Cairo on 11 December 2012. Photograph: Getty Images
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The myth of the Islamist winter

Egypt and Tunisia aren’t sliding into chaos – they are simply learning how to be democracies.

In Tunisia, as in Egypt, the Islamists who came to power through the ballot box are seeing their popularity erode and are tempted to hold on to power by recourse to authoritarian measures. But they have to deal with the legacy of the Arab spring. They face a new political culture: now, one where people who disagree with the government take to the streets; where there is no reverence for established power and the army and the police no longer inspire fear.

The Islamists are obliged to search for allies, as they control neither the army nor the religious sphere. And if they are able to find allies among the Salafists – the religious conservatives – and the military, these two groups are nevertheless not prepared to allow them to become dominant. The Islamists have to negotiate. There is a classical logic of power at work here: the dominant political group finds it hard to accept that power could change hands and so seeks to preserve its position by any means necessary. Moreover, there is no revolutionary dynamic among the populace that would allow it to prevail by appealing to sentiment in the street.

It is interesting to consider the precise nature of this authoritarian turn because it bears little resemblance to the “Islamic revolution” often associated with the Muslim Brotherhood in Egypt and al-Nahda, the Renaissance Party, in Tunisia. It is, on the contrary, a conservative and paradoxically pro-western “counter-revolution”. Consider Egypt. If the president, Mohamed Morsi, is denounced in Tahrir Square as the new Mubarak (and not the new Khomeini), it is because his opponents have grasped that his aim is to establish an authoritarian regime using classical means (appealing to the army and controlling the apparatus of the state).

The electoral and social base of the Egyptian regime is not revolutionary. Instead of trying to reach a compromise with the principal actors of the Arab spring, Morsi is attempting to get all the supporters of the new order on his side. The coalition he is building is based on business, the army, the Salafists and those elements of the “people” that are supposedly tired of anarchy.

Morsi’s economic model is neoliberal: he is surrounded by “Chicago boys” who swear by the free market. He is in favour of deregulation, the end of subsidies and an opening to the global market. His government has just signed a deal with the International Monetary Fund that includes a loan with interest and which it has justified on grounds of necessity. Morsi has accepted the outlook of the IMF, not because he has been forced to do so, but because it is an approach he shares. This will bring further privatisation and competition. And because the price paid by swaths of the population will be severe, the government will need a functioning apparatus of repression and to break the trade unions. It will also have to gain the acquiescence of the army, in exchange for immunity and the right to regulate its own affairs, particularly in the economic sphere.

Meanwhile, to get the Salafists on its side, a cosmetic Islamicisation of society, on the Saudi model rather than the Iranian, ought to suffice: enforced wearing of the veil, continued discrimination against Coptic Christians, a requirement to respect religious norms in public and restrictions on non-orthodox religious practices (specifically, Sufi ceremonies, carried out by followers of Islamic mysticism).

Wider stage

In order to have their hands free domestically, the Islamists must make themselves indispensable to the west – which explains the mediating role that Egypt played in the recent crisis in Gaza. Morsi has performed brilliantly on the international stage, gaining the approval of the Americans in the process. He has fought the radical Islamists in the Sinai and has distanced himself from Iran and Bashar al-Assad’s regime in Syria. He has been able to restore the prestige and influence of Egyptian foreign policy without lapsing into an aggressive Nasserstyle pan-Arabism or pan-Islamism.

Morsi’s success on the international stage has encouraged him to flex his muscles at home. Although there were irregularities in the elections that brought him to power last year, and which led to a legal challenge from the judiciary, no one seriously doubts that they were won handily by the Muslim Brotherhood and the Salafists. But Morsi has gone too far too fast in his attempt to reinforce the power of the presidency at the expense of a judicial apparatus that was able to retain a degree of autonomy under Hosni Mubarak. And his failure to anticipate and understand the strength of public opinion has made things worse. Demonstrations by a cross-section of society that were much larger than expected have undermined confidence in the Muslim Brotherhood. And voices have been raised inside the Brotherhood against this sudden burst of authoritarianism.

Time is against Morsi, because the economic measures that he wants to introduce will make the government increasingly unpopular. And, on the other hand, continued popular protest will require him to call on the army, which will support him, but at a price – the political and economic autonomy that the military is asking for runs counter to the Brotherhood’s programme of economic liberalisation. In short, the new regime is politically isolated.

Besides the street and the political stage, the other battleground for the Muslim Brotherhood is control of the religious sphere. Like al- Nahda in Tunisia, it has discovered that this is considerably more diverse than it had thought. Moreover, figures who had previously been relatively docile where the state was concerned, such as Ahmed el-Tayeb, the Grand Imam of al-Azhar, have reasserted the autonomy that they were granted by the Arab spring. This means that the only way for the government to wrest back control of the religious sphere is to place it under the authority of the state (specifically, to submit the mosques to the diktat of the ministry of religious affairs).

State control of religion would in fact go beyond institutions and extend to religious orthodoxy, leading to limitations being placed on Sufi practices and theological discussions. Even if the Muslim Brothers succeed in the first part of the operation – nationalising faith institutions – the price they will have to pay for it will be high, because the imams won’t appreciate being turned into civil servants. They also run the risk of destroying the religious dynamic of their movement: if the state controls religion, what use is a religious “brotherhood”? And if religion is identified with the state, there is a grave risk that the unpopularity of the government will affect faith institutions in turn, as has happened in Iran.

The Brotherhood will come to be identified with its political wing alone. As in Iran, the nationalisation of religion risks giving rise either to a resurgence of non-orthodox practices or to the secularisation of society. The Brotherhood will lose its soul. And, in the process, it will have lost the Coptic Christians, the liberals and many women, all of whom are apprehensive at the prospect of state-enforced Islamicisation.

The Muslim Brotherhood has taken an enormous risk in trying to prevail by force. The first victim of the way it has exercised power has been its ideology. Islam is not the solution but at best a discourse designed to rally the Salafists, one that disguises a politics more redolent of Pinochet in Chile than of Khomeini in Iran.

If the so-called liberal opposition (which also contains some less-than-democratic elements) sees that it can’t afford a direct confrontation with the government and instead presents itself as a credible political alternative, the Muslim Brothers will pay dearly for a flirtation with authoritarianism that is serving to “secularise” politics in Egypt. Religion is becoming just one instrument of control among others – rather than a social, economic and ideological alternative. This is, in short, the failure of political Islam.

Playing the same game

In Tunisia, the same game is unfolding. Al- Nahda is neither as strong nor as deeply rooted as the Muslim Brotherhood. The movement is more diverse, with a branch that is, if not more liberal, then at least more realistic. And because of their commitment to violence, the Tunisian Salafists are not credible allies. What is more, society has absorbed the culture of protest more deeply than in Egypt. At the local level, demonstrations and riots against the government are common currency, though it is often difficult to discern the motives and strategy of these local actors (criminal and clan activity plays a role that ought not to be underestimated). Tunisia also has the most powerful trade union movement in the Arab world. The UGTT (the Tunisian General Workers’ Union) has a national network of highly organised activists capable of channelling popular protest. Al-Nahda is coming into conflict with the unions, either for the same reasons as in Egypt (a fascination with the free market) or for reasons more specific to Tunisia (it wants allies on its left but cannot bear to compete with a truly popular movement of grass-roots activists).

Additionally, al-Nahda does not control the security forces. The army certainly wants to preserve order, but it will not take the risk of identifying itself with repression against the Tunisian people. Finally, al-Nahda has not succeeded in controlling the religious sphere and has fewer means at its disposal to try to do so than the Muslim Brotherhood in Egypt. In October, a petition was circulated, signed by hundreds of imams who had voted or would vote for al-Nahda but who opposed all attempts to bring the mosques and other faith institutions into the orbit of the state. As in Egypt, al-Nahda proposes to use its own ministry of religious affairs to control the religious sphere, although this statism could rebound against the movement.

Missed popularity

The difficulties encountered by the Islamists have led to a marked decline in popularity in both countries, exposing them to the risk of defeat should elections be called. But the most pressing question is that of the political alternative to the Islamists. The leaders of new political parties have a credibility problem: they are only tenuously connected to the protesters in the streets, they are often associated with the old regimes and they retain an elitist conception of political life. The opposition, in short, is a long way from being able to assemble a credible coalition. The Tunisian opposition in particular suffers from its identification with the secular elite in the capital, Tunis, who are implacably opposed to any re-Islamicisation of society. It also suffers from a democratic deficit, as it has always supported a policy of repression against religious militants. Finally, it finds it easier to campaign in Paris than in the streets of Tunisia. Yet if there were a credible and unified opposition, it could beat al-Nahda in the elections. Consequently, Tunisia’s chances of staying democratic are better than Egypt’s.

In both countries, however, the Arab spring has changed things irrevocably. Beyond the aspects that I emphasised in my first article for the New Statesman nearly two years ago (a new political culture linked to the emergence of a new generation; the diversifying of the religious sphere; a change in geostrategic context that has resulted in the Islamists no longer finding themselves automatically in the anti-western camp; the “embourgeoisement” of the Islamists; the reorientation of a revolutionary movements towards conservative parties), a new factor is contributing to the normalisation of the Islamists – the exercising of power. The Islamists are succeeding neither in delivering the goods in economic and social terms nor in giving the impression that they are architects of an authentic social project that goes beyond the stamping of “Islamic markers” on a society over which they have increasingly little control.

The Islamists can use old techniques (treating their political opponents as “traitors”, introducing censorship, martial law or a state of emergency), but this won’t prevent the people from calling them to account. To get through the period of austerity and the economic difficulties that go with it, they should have done more to secure a “historic compromise” with the liberals. The alternative to such an alliance is not “Islamic revolution”, however. What is taking shape instead is a coalition that is con - servative in politics and morals but neoliberal in economics, and thus open to the west. In this respect, the model is the Justice and Development Party (AKP) in Turkey, which has learned to work with existing institutions and civil society. This has allowed it to reconcile a strong state with a liberal economy, a conservative Islamic party with an open society.

In contrast, if the Muslim Brotherhood wishes to reinforce the state apparatus for its own benefit, it will lose across the board. The Brothers will lose support among the “faithful” to the Salafists (who are less compromised), and in the business community they will lose out to the liberals – or to the army, now that the old guard of marshals and generals has been eliminated. As for the spirit of protest, that is not about to be extinguished.

Translated from the French by Jonathan Derbyshire.

Olivier Roy is head of the Mediterranean Programme at the European University Institute in Florence. He is the author of “Holy Ignorance” (C Hurst & Co, £20)

This article first appeared in the 17 December 2012 issue of the New Statesman, Will Europe ever go to war again?

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 17 December 2012 issue of the New Statesman, Will Europe ever go to war again?