Category Archives: Politics

Gaddafi is Gone.

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The brutal end of Muammar Gaddafi’s life marks a political new beginning for Libya. The circumstances of his demise speak volumes about the road ahead.

Gaddafi was summarily executed after being captured by rebel fighters (the term “rebel” rather than revolutionary is correct in that it properly places the armed opposition in a civil rather than revolutionary war whose outcome was largely determined by external interference).  His non-military convoy was attempting to flee the rebel’s final advance on Surt, his hometown, when it was struck by a NATO airstrike (in violation of the rules of engagement NATO publicly announced when it declared a no-fly zone that included attacks on land-based military targets that posed an imminent threat to civilians). Concussed and wounded by shrapnel, Gaddafi and a few loyalists took shelter in a culvert. They were discovered and some were killed then, while Gaddafi was dragged out and manhandled by a growing mob. Disarmed, confused, pleading for mercy and bleeding, at some point soon thereafter he was head shot at point blank range (images of his wounds show powder bruns at the entry point). He was not caught in cross-fire, as there was none.

Killing a captive after surrender or capture is a war crime, including in civil wars. The rage and thirst for revenge of Gaddafi’s killers is understandable, but it shows a lack of discipline and foresight. Gaddafi and his inner circle could have provided valuable intelligence on a broad range of subjects, be it the terms of the exchange that led to the release of the Lockerbie bomber, the grey arms networks in which Libya operated, or the extent of Gaddafi’s funding of influential Western agencies such as the London School of Economics or Harvard’s private political and strategic consulting firm. Similarly, although the outcome would have been pre-determined, his trial would have provided the Libyan people with a facimilie of representative justice in which his crimes could be publicly aired, and which could serve as a foundation for a new justice system once the new regime was installed. Even Saddam Hussein was allowed that much.

The barbarism of putting Gaddafi’s decomposing corpse on display in Misurata for public viewing speaks to the levels of distrust and base nature of the sectarian divisions within Libya. These will not go away simply because Gaddafi and his clan have been removed from power. The tactical alliance against his regime will not hold now that it is gone, and given that all of the main factions are armed, this raises serious questions about the political future of the country. The cross-cutting divisions are multiple and overlapped: Eastern versus Western, Islamicist versus non-Islamicist, Berber versus Arab, Benghazian versus Tripolian, urban versus rural, coastal versus land-locked, elite versus commoner, old royalist versus new upper class. Although the role of foreign military advisors and logistical support was crucial to victory, many rebel military commanders have carved out power centres of their own, and not all of the rebel political and military leadership are democratic in inclination.

The National Transitional Council (NTC) headquartered in Tripoli has announced the formation of an interim government within a month and presidential elections in 18 months. Both goals are very ambitious and the latter is inherently flawed. Imposing a presidential system in a multi-tribal society with no history of democracy and a long history of conflict  is a recipie for authoritarianism, as political contenders will vie for and hold presidential power in pursuit of sectarian rather than national objectives. A parliamentary system with multiparty proportional representation would be a better fit given the realities on the ground, as it would force power contenders to negotiate and compromise in pursuit of coalition objectives, which in turn would put constraints on executive authority.

To put the issue in comparison, the Libyan polity is more fragmented than that of Iraq and does not have an occupying force that imposes transitional order and around which national opposition can coalesce. Iraq has a parliamentary system that recognises sectarian control of parts of the country as well as grant participation to key clans, and yet has yet to be free of violence or have fully cemented the institutional base of the post-Baathist regime. This portends darkly for the immediate prospects of a post-Gaddafi Libya.

The issue of disarmament and creation of a national military, to say nothing of disposition of Gaddafi’s purported chemical weapons stores and other sophisticated armaments, is bound up in the negotiations over the interim government and rules of the game for the political transition. Given that NATO allies are not the only foreign actors involved in Libya, and given that some of these actors are non-state or state-sponsired in nature and have conflicting agendas with NATO, this means that the post-Gaddafi situation may descend back into conflict sooner rather than later. To this can be added the purge and reconstitution of the Libyan state as a functioning sovereign entity, a process that will also be driven by mindsets as much focused on the division of spoils as it is by notions of the common good. That overlaps with the issue of oil resource control and distribution, as well as the status of contracts signed during the Gaddafi regime, both of which involve tribal politics as well as the interests on non-NATO foreign actors such as China.

All of which is to say that the circumstances of Gaddafi’s death tells us much about what the future holds in store for Libya, at least over the near term: chaos, violence and imposition rather than consensus, forgiveness, reconciliation and compromise.

 

Public Goods and Private Bads.

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Much has been written about the difference between public goods and private goods, including issues of fungibility versus liquidity in the allocation of each (public goods are fungible rather than liquid, private goods can be both. Fungible means that something of worth can only be replaced in-kind, in a largely 1:1 transaction. Non- fungible or liquid means that the item can be exchanged for something else of different worth/value)). Less attention has been devoted to the issue of public and private bads, including the responsibility of the state in addressing each. In light of the disasters that have befallen NZ in the last year, it is worth pondering the latter.

The Pike River mine disaster is an example of a private bad. It was human caused, being the result of bad management decisions and poor safety standards within the mine, and affected its employees and profits. However, its impact on the public good was minimal. Even so, lax mine inspection regulations contributed to the explosion and loss of life, which is a public bad because state inaction facilitated the collective tragedy, and the adverse economic impact of the mine’s closure on the local community is also a public bad because it negatively impacts on the community through no fault of their own. The question is, what role does the state have, other than the policing in the aftermath of the event, in addressing the public bad aspects of the disaster?

The Christchurch earthquakes are clearly a public bad. The combined into a prolonged natural disaster, largely unforeseen. The government mobilised resources to address the aftermath, efforts that are still ongoing. But is there a private bad element to the quake? Did shoddy construction contribute to the loss of life and property? Were regulatory loopholes exploited that exacerbated the impact of the quakes, and if so, what is the state’s role in rectifying those areas in which standards and procedures were skirted. Is it a matter for the industries involved to resolve privately? What happens when private insurers renege on coverage or attempt to minimise payouts? Does the state have a responsibility to cover the difference in the public interest? Or is that purely a private matter?

The Rena shipwreck is most interesting because it clearly combines the two forms of bad. It started out as a private bad caused, apparently, by gross human error. National’s response was predictable: it waited for the parties to the contract of the vessel to negotiate a response. And waited. After four days of calm weather and no private response, a storm blew through and began to break the ship apart, spilling part of its load and fuel from ruptured fuel lines. When leaked oil and containers began to hit Bay of Plenty beaches, the disaster became a public bad, at which time the government belatedly intervened, mostly in a support rather than in a leadership role. This is due to its continued preference for the contracting parties to assume the responsibilities incumbent upon them for having caused a private bad with public ramifications. Meanwhile the environmental impact of the wreck continues to grow, with the costs of the clean up rising and the negative economic impact on local businesses likely to be significant in the measure that the spill is not contained promptly and the clean up process stretches into months. 

In other words, a private bad caused a public bad with private bad implications. Since the National government believes in the primacy of the market and private sector, it has left the bulk of the response to the parties involved, and called for volunteerism (another private act) in its approach to cleaning the beaches.

All of this is quite predictable. The quest for privatisation of the public sphere over the last two decades has reduced the concept of public goods and bads while expanding that of private goods and bads. Left to their own devices in a deregulated public space, private actors will minimize costs and increase risks in the pursuit of profitability. Should an accident such as Pike River or Rena occur, the payouts involved are considered to be acceptable given that they will be less than the costs of compliance in a tightly regulated commercial environment. The calculation is that the costs of occasional “one-offs” (which are not) will be less than the costs of ongoing regulatory compliance. In coal mining and shipping, accidents are not occasional happenstances but regular occurrences so the industries involved are have prepared accordingly (by establishing contingency funds for such events). The difference is that when a private bad becomes a public bad, they have limited contractual responsibility in addressing the latter. It is up to the state to recoup the costs of the public side of the bad incurred, which means taxpayers will have to foot the bill for the legal expenses involved in the court cases taken against the private parties responsible. In some cases–Pike River looks to be one–the state will do nothing of the sort because the public bad aspects are considered to be small, incidental, and not worth prosecution.

It appears that in the rush to privatise sight was lost on the potential public bad caused by private bads. Commercial de-regulation in the pursuit of competitiveness and trade ignores the fact that the private parties in contractual relationships with each other are not, by definition, responsible for the public good. As such, the public bad potential of a private bad event is discounted, in part because private parties know that governments will be loathe to charge them the full costs of a public bad response less they  be seen as anti-business. In an age when the private sector rules over the public interest, few governments will be courageous enough to incur the wrath of major commercial actors regardless of the latter’s responsibility in causing a public bad.

The problem is compounded by the hollowing out of state regulatory agencies, particularly in their operational capabilities as well as their policy scope. Insufficient regulatory enforcement (such as it is) due to reductions in state regulatory agency workforces, combined with reductions in quick response assets in agencies responsible for disaster relief and mitigation, force the state to contract out the latter in an environment made riskier by de-regulation. Since the skill sets required for disaster relief are often very specialised and limited, given the geographic and logistical difficulties presented by specific scenarios in the time-sensitive context in which the public bad occurs, this places private actors with such skills in a de facto monopoly position over the response in their areas of expertise. This allows them to extract monopoly rather than market rents from the state when contracting such assignments.

The private bad-focused approach can be seen as short-sighted in the measure that de-regulation facilitates private actor irresponsibility, which in turn leads to higher costs for the state in the event that a private bad becomes a public bad. Seen another way, robust state regulation of private industries with potentially injurious public consequences may in fact be more of a cost-savings over the long-run given the inevitability of private sector accidents that negatively impact on the public good.

This is the crux of the matter, and it is the one that should be reflected upon when issues of off-shore drilling, mining, nuclear energy and other private industrial ventures with potentially public bad implications are discussed.

 

Question of the Day.

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Is the global “Occupy” movement a genuine grassroots mobilisation with revolutionary potential or is it bound to fizzle out, be coopted, voluntarily moderate its demands or splinter into myriad fringe groups without promoting substantive change in the socio-economic status quo?

Interested readers are invited to share their views.

Alienation, False Consciousness, Passive Revolution and Reformism.

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Throughout the globalised system of capitalist production, grassroots discontent with the economic and political status quo has produced a number of national counter-hegemonic mass mobilizations. All are born of alienation, but their social origins, goals, modalities and outcomes differ.

Alienation is a product of environment, natural and human. Even if conforming in the main to universal standards of conduct, individual (and later collective) social subjects become emotionally detached from the realities of everyday existence.  The causes are many–disaffection with a job or lack of employment prospects, racial difference, inter-personal difficulties, environmentally-caused psychological disorders, etc. This promotes a social outlook that grows increasingly hostile in the measure that adverse life conditions are interpreted to be the result of circumstances created or exacerbated by the socio-economic and political elite. That leads to various types of “anti-social” behaviour, individual and collective, which constitute expressions of the resentment that alienation breeds. Some of this behaviour is little more than petty acts of rebellion. Others pose a more serious threat. Individual and small-group alienation can often be treated as a psychological and criminal problem. Mass alienation resulting in grassroots mobilization is another thing because it involves horizontal solidarity and networking between self-perceived disenfranchised groups rallying in opposition to a common (elite) enemy. However, this does not mean that there is ideological coherence in the oppositional claims of the alienated.

The reason is simple. One product of alienation is false consciousness. False consciousness is a condition where the individual and collective social subject thinks about the causes of alienation in ways that run contrary to material self-interest under the assumption that the reasons for deteriorating or negative life circumstances are rooted in cultural or ideological factors rather than structural realities. Rather than confront the macroeconomic presumptions and biases inherent in a market-driven system of private (and increasingly corporate) ownership, consumption and exchange, false consciousness focuses on behavioral differences rooted in primordial beliefs, identities, ideological differences or contrary collective action.

Under conditions of collective false consciousness there is often a yearning for a return to tradition or a retrenchment of in-group identification along national, ethnic, religious or racial lines, sometimes with overtly nostalgic class content. This mainly occurs with descendent class fractions (for example, the industrial working class in the US) whose position in the social division of labour has been eroded by structural changes wrought by the globalization project. Confronted by this slippage in class status, descendent class fractions such as the white Christian middle classes in a host of liberal democracies blame their condition of so-called “others:” immigrants, religious minorities, non-traditional or opposition ideological movements, etc. In an effort to reclaim their past status, declining social groups are willing to condone anti-establishment, non-institutionalised forms of political competition because for them the threat is existential. When these forms of collective action take on a restorative or revanchist tone, they are considered to be passive revolutions.*

Passive revolutions are not genuine social revolutions. Although they can be violent, they do not destroy and transform the socio-economic and political parameters of society. Instead, they seek to use non-institutional means to reclaim a previous status quo in which they prospered. Because contemporary and future structural conditions preclude a return to a previous form of production and its attendant social division of labour, these groups are prone to extremism in the measure that they are denied their self-perceived just rewards. The starkest examples of passive revolutionary movements were European fascism and Latin American national populism. Although each had a different socio-economic core (Southern European fascism was a mixture of working class and small property owners’ movements, whereas Northern European fascism was urban middle class based, with national populism being a combination of urban working class and peasant movements depending on the specific country in which it manifested itself), they all had the commonality of being a reaction against something rather than a source of substantive forward-looking change to the basic parameters of society.

Not that all progressive counter-hegemonic grassroots movements are necessarily revolutionary. Many progressives seek to improve upon rather than transform the status quo. They do not seek to question its basic foundations but to make it more humane (hence the refrain “people before profits”). Coupled with an aversion to violence on the part of most progressive groups in liberal democratic societies, this leads to counter-hegemonic strategies that are not wars of position or of maneuver. Instead, they are collectively reformist rather than revolutionary in nature.

Given the above, from an elite perspective counter-hegemonic grassroots mobilization is best handled via state reformism and reform mongering. State reformism is the adoption of a conciliatory and concession-based policy approach by which elites give up certain prerogatives and agree to modify certain institutional frameworks in order to allow for more popular voice and benefit. Although the distribution of benefits between dominant and subordinate groups may be altered by such arrangements, overall control of material conditions, ideological context and political office remain in the hands of the elite. Reform mongering is the piecemeal allocation of concessions to social groups based upon the persistence of their demands and their strategic importance in the social division of labor (which can also be part of a divide-and-conquer strategy). Things such as civil rights and labor legislation represent examples of reform mongering in capitalist regimes, with broader programs such as the US New Deal and Great Society are examples of reformism at work.

This brings up the issue of the Tea Party and Occupy Wall Street movements in the US, the England riots and the mass mobilizations that have occurred in France, Greece and Spain among other places. While some of the mobilizations have been progressive, there has been plenty of passive revolutionary sentiment embodied in them as well. The Tea Party movement is a glaring example of the phenomena, but the rise of right-wing nationalism throughout Europe is also emblematic in that regard. Even the ethereal “Waitakere Man” has, if only latently, as much passive revolutionary as it does reformist traits, with very little progressive revolutionary consciousness evident in the collective “him.”

The dominant ideological tendency towards reactionary or reformist rather than revolutionary perspectives poses problems for progressives because the three ideological strands that are the most difficult to overcome in any parametric struggle are cultural tradition, nationalism and religion. When these are combined in a reactionary groundswell against the usurping “others,” they make for a formidable obstacle to substantive change, especially when elites tacitly support their emergence as a hedge against mass collective action that is focused on structural transformation.

The so-called Arab Spring is a variant on the theme. Although some believe the uprisings to be revolutionary, they are in fact reformist at best and passive revolutionary at worst. There is no doubt that post-Gaddafi Libya will remain capitalist, sectarian and tribal, albeit under different (most likely authoritarian) leadership. Mutatis mutandis, the same holds true for Syria, Tunisia, Yemen and other Arab states, to say nothing of Iran should popular discontent magnify to the point of unstoppable mass uprising. Revolts are not revolutions because of their reformist and passive revolutionary character.

The lesson in all of this is to recognize that alienation may be at the root of the thirst for socio-economic and political change, but false consciousness often intrudes on perceptions of the proper “solution set” to the point that the passive revolutionary option remains as viable if not more so than reformist alternatives, with the chances of genuine social revolution lessened to the extent that false consciousness, be it spontaneous or manicured, prevails in society.

In sum: passive revolutionary sentiment in the body politic in modern capitalist society constitutes the biggest obstacle to progressive change. With corporate elites dominating the media discourse and actively encouraging such beliefs, the task of the grassroots mobilizer becomes all the more difficult because the first step required is to promote an ideological conversion amongst non-believers who are indoctrinated to believe that the status quo is worth defending, even if in modified form.

Couple that with the limited revolutionary consciousness of the organized labour movement in most advanced capitalist democracies, the reformist nature of the likes of the Occupy Wall Street movement and the apathy and narcissism that is another manifestation of alienation, this augers poorly for the prospects of parametric grassroots change in the near future.

* Left for another time is discussion of ascendant class fractions in the contemporary capitalist context, not all of who (such as finance elites) embody the spirit of progressive change.


 

About SAS “mentoring.”

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When John Key authorized the re-deployment of an SAS company to serve as counter-terrorism advisors to the Afghan Police’s Crisis Response Unit (CRU) in 2009, he was authorizing a mission that differed from the long-range patrol, tracking and infiltration missions that are the mainstay of SAS deployments and which were the basis for its original deployment in that theater from 2001-2005. In doing so he was placing the SAS at the forefront of the urban guerrilla war in and around Kabul (to include Wardak Province) that was part of the Afghan resistance’s two-pronged (urban and rural) irregular war conducted against the foreign occupying force led by the US and NATO under the banner of the International Security Assistance Force (ISAF). By the time Key authorised the deployment the security situation in Afghanistan had evolved into a civil war involving the Western-backed Karzai regime, the Pakistani-backed Haqqani network, and various Taliban factions based in and outside of Afghanistan (with Pakistan facilitating cross-border cover for those based inside its territory).

The SAS inherited the counter-terrorism advisor mission from the Norwegian special forces, who had advised the CRU from 2007-2009. The CRU has its origins in 2005, so rather than a new unit it is almost seven years old and has had foreign professional military training and advice for nearly five years. In most modern militaries the time taken for specialisation beyond basic training (such as sniping, sapping, intelligence-gathering and counter-terrorist response) varies from 6 to 18 months. That means that the CRU, which has 285 members, is lagging behind when it comes to being able to autonomously respond and fight on its own.

The SAS initially sent a light company’s worth of troops (70) in 2009, but the number has been reduced to 38 in the last year. The job consists of providing training on-base in which counter-terrorist assaults are mounted in various scenarios, using abandoned buildings, vehicles and other simulations that replicate the dense tactical environment in which the CRU must operate. Close quarter clearing and entering, airborne rappelling, hostage rescue and a host of other skills are initially imparted in these exercises. But the mission also includes accompanying the CRU into real situations, which means taking leadership roles in responding to live incidents when the CRU forces prove unable to cope on their own. As Taleban attacks on symbolic and military targets have increased over the last year in concert with the announcement that the US will be withdrawing the bulk of its forces by 2014, with other ISAF members already doing so,  the pace of these “live” responses has accelerated as well. Most of the operations conducted by the SAS/CRU consist of pre-emptive strikes against imminent threats based on intelligence flows provided by Afghan and ISAF forces. A smaller percentage is dedicated to responding to terrorist incidents in progress such as the attacks on the Intercontinental Hotel and British High Commission. The accelerated pace of operations now sees the SAS/CRU deployed in “live” mode 2-3 times a week on average. 

Urban guerrilla warfare has no fixed lines or fronts. In fact, by definition the battle space in a guerrilla war is amorphous and permeable. Thus the counter-terrorism mission is a combat mission within an irregular warfare context. Training and advising in such contexts means involvement in close-quarter small unit kinetic operations, which given the dense (heavily populated and urbanised) environment in which they occurs means that support and leadership roles are indistinguishable to the enemy. Thus the SAS has always had a combat role in this mission.

It is evident that the CRU is not performing up to professional standard, particularly when confronted by a committed and well-prepared enemy. This may be due to a lack of will on member’s part, which in turn may be rooted in the deep divisions extant in Afghan society and in the knowledge that a post-ISAF political settlement that avoids massive bloodshed will have to include the Taliban and the Haqqanis. Under such conditions in may appear foolish to be closely identified with foreign forces working with the Karzai regime. That could sap the desire of some CRU members to engage robustly in the counter-terrorism effort, no matter how eager they may appear to their SAS advisors when back on base. This is compounded by faulty intelligence flows in which individuals or groups with personal vendettas supply misinformation about rivals so that ISAF forces, including the CRU/SAS, launch raids against innocent people. There is already at least one incident in which the SAS has engaged in an operation that resulted in the deaths of innocents based upon faulty intelligence. The manipulation of intelligence by Afghan sources, in other words, raises the probability that the SAS will be involved in the deaths of civilian non-combatants.

The SAS dilemma is compounded by the fact that, given CRU unreliability, the risks to SAS troopers increases every time they deploy with them. It is one thing to deploy with fellow SAS on long-range patrols or in a counter-terrorism situation. They are a tightly knit and cohesive fighting unit playing off the same tactical page. But adding the CRU to the mix brings with it a lack of discipline and resolve, which forces the SAS troops to compensate by leading by example. Doing so exposes them to a degree seldom seen when fighting on their own.

The latest raid that resulted in the second death of an SAS soldier in a month demonstrates the problem. In a pre-emptive raid against suspected bomb-makers (or a family feud, depending on who you believe), the SAS deployed 15 advisors along side 50 CRU troops. This is a ratio of 1 advisor for every 3.1 CRU soldiers. That is remarkably low if the SAS were merely “mentoring” in a support role. The fact that the SAS trooper was killed while climbing a ladder to gain a better vantage point on the compound in which the raid was taking place shows that even such basic tasks, usually assigned to the most expendable soldiers of lower-rank,  are having to be done by SAS troops. This demonstrates a lack of faith in the competence or reliability of the CRU personnel and the need for first-responder proaction on the part of the SAS in such situations.

Given that the Afghan resistance have increased the tempo of their operations in and around Kabul, the likelihood is that the CRU/SAS will be involved in an increasing number of armed incidents. That may force the NZDF to re-increase its complement of SAS back to the original 70 personnel, and raises the question as to whether it will be asked to extend the SAS deployment past its March 2012 withdrawal date. Given the strategic dynamics at play in Afghanistan, that is a sticky question.

It also raises the question as to why Mr. Key has from the day he announced the re-deployment insisted that the SAS are in a non-combat “mentoring” and support role. The NZDF and Minister of Defense have now admitted that combat is part of the mission. Mr. Key continues to deny that it is so. Besides the lack of synchronization of the government PR spin, the question rises as to whether the government has misled the NZ public on the true nature of the mission, or the NZDF deliberately misled the Prime Minister and his cabinet on the matter at the time the request for SAS assistance was made by ISAF (it should be noted that Mr. Key’s agreement to redeploy the SAS was based on his eagerness to curry favor with the US, which may not have seen a trade deal as a reward but which has seen NZ elevated to the status of full US security partner with the signing of the Wellington Declaration of November 2010. This may well mean future involvement in US-led military operations that have little to do with NZ’s national security per se).

All of this makes the government and NZDF attacks on the credibility of Jon Stephenson and Nicky Hager, two journalists who exposed the true nature of NZDF missions in Afghanistan and the duplicity surrounding them, all the more contemptible and desperate. It also was very stupid to do so because the conflict environment in which the SAS operates has deteriorated rather than improved since it arrived back in theater, which made the deaths and wounding of its personnel much more likely if not predictable. Once that began to happen (there have been about a half dozen SAS troopers wounded in combat on this mission),  it was only a matter of time before the corporate media began to focus attention on the dubious explanations about the nature of the deployment. With that now happening the house of cards that is Mr. Key’s justification for authorizing it has begun to crumble, and it will not be surprising if senior NZDF heads will roll as a result.

 

Willful ignorance in the US

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Ron Paul was booed at the recent Tea Party GOP candidate’s debate when he said that Americans should think about what motivated the 9-11 attacks. Rick Santorum had already said that the US was attacked because the terrorists hated “American exceptionalism” and the freedoms it brings, a comment that brought cheers from the audience. Even admitting that the audience was full of Tea Party adherents, what is disturbing is that this sentiment–that the US was attacked for its freedoms and that the underlying causes of the attack are reducible to that–is generalized throughout the population.

Neither Paul or other thoughtful commentators have justified the attacks (and I am not referring to the Ward Churchill variant of commentary). They have simply sought to open debate on the nature of US actions that could prompt such an act of premeditated violence against the symbols of US power and the innocents caught in them. For that, they have been accused as anti-American traitors and terrorist sympathisers.

The hard truth is that Americans simply do not want to reflect on the impact of US foreign policy in general, and on its role in setting up the conditions in which the 9/11 attacks were carried out. Scholars (most notably Chalmers Johnson) have used the term “blowback” to describe the unintended effect of US neo-imperialism. But this is not acceptable in American political discourse because, in spite of its myriad problems, the narrative being sold is that the US remains the “shining house on the hill” that can do no wrong and whose impact on global affairs is always benign. Thus two wars of occupation are considered to be acts of bringing freedom and democracy to backwards places, even if the majority of citizens in those places openly oppose the presence of US troops. Extrajudicial rendition and enhanced interrogation techniques on “unlawful combatants” and a host of innocents are justified as necessary for freedom to prevail in the Islamic world. There is a hallucinatory aspect to the way in which US foreign policy and international behaviour is construed, and it is disturbing that so many average Americans buy into that construction.

Admittedly, Ron Paul calling for a reflection on what motivated the 9/11 attackers in a presidential candidate’s debate held on September 12 a decade after the attacks shows poor political judgement, for which he will be punished electorally. Equally understandable is that right-wingers in the US would seek to cloak all US actions in the mantle of righteousness. But it is profoundly alarming that even after ten years a majority of Americans appear to believe that the attacks were unprovoked, or at a minimum inspired by some form of jealousy on the part of Islamic evil-doers. It is also alarming that in the present political context no Democrat is going to disabuse the American public of that notion.

It may be hard to swallow, but the US public needs to understand that there is a direct link between US actions abroad and the resentment it breeds. It needs to understand that this resentment is long standing in some parts of the world (I am most familiar with Latin America), and that the desire to strike back is deeply embedded in many places. It needs to take pause and reflect on this cold fact in order to begin to address what the US international role properly should be. Many Americans think that it should act as the global policeman, not only because other states cannot but because this is what politicians and the mainstream press tell them that is the role it should play. But that view is not universally shared overseas, where moral authority, diplomatic leadership and economic exchange is more highly valued than carrying (in Teddy Roosevelt’s terms) a big stick.

Better yet, with its economy hollowed out and its military stretched across the globe fighting to preserve a status quo increasingly under siege, perhaps it would be wise for the US public to drop the blinders and reflect on the fact that it many ways the US is starting to look like the USSR in the 1980s–a military power increasingly left without the economic or political foundation to regulate the international system rather than simply clinging on to a role it once had, and which may never be again (remembering that the difference between a superpower and a great power is that the former intervenes in the international system (often using war as a systems regulator) in order to defend systemic interests, while the latter intervenes in the international system in order to defend national interests). Only by confronting the truth about the nature and impact of its actions abroad will the US be able to begin the process of re-establishing its international reputation, if not status.

That, it seems to me, is the root question that needs to be addressed a decade on from 9/11.

 

 

 

Skirting the storm.

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I arrived in Miami just as Hurricane Irene turned northeast, sparing Florida but pounding the Mid- and North Atlantic seaboard. From what I saw of the outer fringe of the storm when it was a category 3 hurricane–5 meter frothing waves, high gusting winds and torrential (sometimes horizontal) rain, the folk up north were lucky that the storm weakened as it hit colder water and made landfall. Not surprisingly, many complained about the mandatory evacuation measures that were put into place, arguing that it was over-kill given the downgrading of Irene to a category 1 storm, even though the flooding and winds that did reach the major population centers clustered along the East Coast caused more than 30 deaths, major damage to property and infrastructure, and prolonged  power outages that affected over 5 million people. Just like those who flocked to the shoreline to see the big surf, it is as if they simply cannot understand the implications of what was originally headed their way. In many ways, this reflects the general state of US politics at the moment.

The current political climate in the US is dominated by the Republican primary campaign. Truth be told, it has all the aspects of a circus side-show, freaks and all. There is Michele Bachmann, she of the “always on high beam” glazed stare and Cold War apocalyptic views with the closet queen husband who claims that he converts homosexuals to heterosexuality through prayer (giving a whole new meaning to the phrase “laying on of hands”). There is Rick Perry, a W. Bush wanna-be Texas governor who does not believe in man-made climate change and endorses creationist interpretations of evolution. There is a black guy with a slave name (Herman Cain) who ran a chain of pizza shops and seems to think this is enough experience to run the country. There is the evergreen Ron Paul, who looks better over time in the measure that his party candidates increasingly evidence pre-reconstruction beliefs. There is Newt Gingrich, serial adulterer and engineer of the last government shutdown, pontificating about a return to “constitutional values” ( he must be thinking about the founding father’s penchant for liasions with female slaves). There is millionaire Mitt Romney, once again attempting to recast himself in a right-wing image, this time as a Tea Party supporter. Romney and another candidate, John Huntsmann, are both Mormon former governors of states that in no way reflect the larger society in which they exist (Massachusetts is an unsually liberal state, while Utah is unusually conservative). Behind this motley suit-clad crew are the ranters and ravers, led by Sarah Palin and Glenn Beck, who want to bomb Iran, Venezuela, North Korea, Pakistan and any other place the communist-socialist, islamofascist, feminazi, ecoterrorist gay-lesbian secular humanist alliance is taking hold.

The GOP is a party now governed by its rump, in the guise of the Christian fundamentalists and Tea Party anti-government activists (who in spite of their claimed belief in self-reliance are strangely silent on the issue of accepting federal aid to the hurricane disaster zones, perhaps because Bachmann and televangalist Pat Robertson both claimed that the hurricane and the earthquake that preceded it on the East Coast were acts of God designed to warn politicians to be fiscally prudent and morally conservative). It is a party that has congressional leaders that openly gloat that their primary objective is to make the Obama administration fail, even if it takes forcing government agency closures as arguments over budgetary matters continue at an impasse (the agreement on the debt ceiling is only a temporary measure). This includes trying to tie federal disaster relief to budget cuts in other areas. It a party that is openly disloyal and disrespectful of the presidency, and which has open champions on conservative media outlets that are equally disrespectful and delusional in their approach to “correcting” the multiple ailments afflicting the country. These people dream of an Ozzie and Harriet la-la land where Negros, Hispanics, Arabs and other non-whites know their place.

The trouble for this crowd of neo-cons, bible-bashing fundies, xenophobes, racists, isolationists, revanchists and neo-imperialists (and yes, there is a bunch of contradictions layered in there) is that their proposed solutions to the US malaise avoid the major issue and in fact will serve to exacerbate it: growing class differentials, both in income and opportunity. In the US today, the top 400 individual income earners control as much of the national wealth as the bottom 60 percent of the population. This is what I have called in the past the “Brasilianisation” of US society, where income inequalities become monumental, except that now Brazil is thriving and growing its middle class by using the type of state-managed macroeconomic policies so reviled by the American Right, to the point that it beginning to look like what the US once was (no insult to Brazil intended).

Yet the Tea Baggers and GOP want to continue tax breaks for the upper ten percent of the population and corporations (some of whom have paid no net tax in the last five years) while drastically reducing public funding for so-called “entitlements” like universal health care, welfare, education and infrastructure development. The new scapegoats, along with the traditional targets of brown-skinned immigrants, are public sector employees, who now are being targeted for layoffs and redundancies at both the state and federal level. A major target are public school teachers, whose pensions are considered to be a major drain on state coffers (in spite of the fact that these employees paid a significant percentage of their salaries into their pension funds).

Behind all of this is open hatred of unions to the point that some GOP candidates want to eliminate them entirely. Bachmann, for example, wants to disestablish the National Labor Relations Board, a non-partisan oversight body established by FDR as part of the New Deal that encourages the right to collective bargaining and union representation in the workplace (but not closed shops). Anti-union governors have emerged in several states (most notably in Florida, Minnesota and Wisconsin) using union-bashing as a populist tool in pursuit of fiscal reform. Given president Obama’s conciliatory and compromising stance vis a vis GOP demands (some have called it a sell-out), cracks in the Democratic support base are starting to show, with the labor movement, Congressional black caucus and Hispanic leaders all denouncing his retreat from the “progressive” (as much as you can be in the US)  policies on which he campaigned. This augers poorly for his re-election chances in 2012, although given the dog-and-pony show that is the GOP candidate list, he remains the default option.

Of course, these same reactionaries want the US to maintain a global military presence (now in more than 80 countries) that can strike at any adversary, real or imagined (recall the invasion of Grenada under a previous Republican president). They fail to understand that keeping a global war machine requires and exceptional level of public funding through taxation, and that the 100+ trillion dollar US public debt is in large measure due to the Bush 43 administration’s deficit-spending pursuit of two wars of occupation (one of necessity, one of choice) that is currently costing 1 million dollars per deployed soldier per day (one only has to think of the logistics lines and cost of equipment to see how these figure tallies up).

Rather than push to withdraw or downscale the US foreign military presence these same folk preach about the need to maintain the US role as global policeman, particularly in light of the re-emergence of China and Russia as strategic rivals along with the threats posed by states such as Iran and other middle powers that fail to adhere to US dictates. They deny that they are imperialists, but in order play the role of world cop the GOP is willing to sacrifice the roots of domestic stability, in the form of an equitable tax base and the robust provision of public goods and services.

This brings up what the GOP and Tea Party extremists cannot see and what their policies will aggravate: class conflict. The US has always been good at deliberately down-playing class conflict in favour of racial tensions, cultural differences and issues of social choice. During times of plenty, say the 15 year period between 1993 and 2008, the underlying class divisions in US society could be more readily submerged by these distractions, making the electorate easily manipulable by the corporate-political elite that benefited the most by the macro-economic policies of the last two decades. But in the last three years, as the same economic elites who plunged the US economy into recession were awarded corporate bail-outs by both the Bush 43 and Obama administrations, millions of “ordinary” Americans have lost their jobs, their homes and their future prospects. Now, rather than providing the federal safety net as a stop-gap against further social dislocation and the unrest that it brings, the GOP is successfully pressuring the federal government to remove key components of the fundamental social contract that has underpinned US society since the 1960s.

The proposed conservative roll back ignores the fact that what got the US out of the Great Depression, the New Deal, was founded on a federal job creation program, and that the Great Society of the 1960s was rooted in the expansion of civil rights tied to equal opportunity access promoted and enforced by the federal government. Instead, the American Right has adopted a “survival of the fittest” approach in no small part because they are the fittest to survive given who their economic benefactors are. The reality is that their proposed remedies are exactly the opposite of what has worked in the past to revitalise the economy and will have negative consequences far in excess of whatever benefit they hope to achieve.

What the GOP, Tea Baggers and the frothing-at-the-mouth media conservatives are blind to is the fact that their policies will accentuate class differences, leading to increasing alienation and dispair amongst those for whom the American Dream no longer exists. One only need to look at the UK riots to understand where such policies lead to, yet the likes of the infamous Koch brothers (billionaires who are funding the Tea Party movement) continue to push for policies that reduce the ability of the federal government to help those at the bottom of the socioeconomic totem pole.

There is irony in the fact that the Tea Party movement is made up of mostly white middle  and working class people yet advocates tax and fiscal policies that openly favour the rich and corporate interests instead of their own. In fact, the Tea Party movement is backing policy prescriptions that are a thinly veiled attack on the working poor and lower middle classes as much as they are a coddling of the wealthy. But then again, false consciousness is a common feature of declining class fractions confronted with the evolution of society in which they no longe matter, as they seek to cling to a nostalgic version of the past in which they served as the motor force of the economy and culture. They no longer are, and the conservative correctives will ensure that it stays that way.

The bottom line is that like the fools who ignored warnings about the hurricane, the American Right is plunging the country towards its worst nightmare: the day in which class conflict emerges out into the open and cannot be disguised by so-called “culture wars” and the other customary diversions that have been used successfully in the past. When that day comes not only will the discourse of politics be different. So too will be social interaction, which will begin to adopt centrifugal rather than centripetal characteristics as the fabric of society begins to fray.

NB: A note for Lew: you will be interested to know that television advertising in the US increasingly sees the use of military personnel (or actors protraying armed service people) in a variety of huckster roles, from selling donuts to cars to anxiety medicine. Most of the military personnel being potrayed (including female soldiers) are depicted as being from the enlisted ranks, as a common touch with the consuming masses. Since you are the media analysis guru I shall leave it to you to ponder the implications of the military presence in US advertising, but if it is true that advertising reflects more general social preferences, trends and mores, then from my non-expert vantage point it sure looks like the militarisation of public discourse is near complete (which only will make the impending clash of class interests that more alarming).

Needs, Wants and the threshold of consent.

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They say that necessity is the mother of invention. If so, then the genius of capitalism is that it translates wants into needs. Needs determine necessity. The deliberate promotion of wants into needs in pursuit of profit has become the driving force behind technological innovation,the necessity of which is driven as much by consumption as it is productive requirements.

Thirty five years ago few people had remote controlled televisions. Over time the remote became affordable for mass consumption, and by now few televisions come without them.  As a unanticipated externality or derivative, local pathologies have risen as the” need” to consume  taken hold: couples fight over viewing options, leading to personal conflicts or the acquisition of another television and remote for separate viewing and marital harmony (as well as further profit). As the cost of televisions with remote controls drops under the weight of competition, material preferences (and social pathologies) are extended into the mass of society. Thrity years ago no one needed a remote controlled television. Now everyone does, at least in the “developed” world.

Twenty years ago mobile phones were clunky, heavy and expensive. So where computers. Landlines sufficed for most verbal communication, and computers were in a relatively early and restricted stage of mass development. Since mobile phones  and computers were not needed for everyday communication they were a luxury good or professional tool, not a mass consumption item.

Today computers and mobile phones are everywhere, with squadzilliions worth of gigabytes and full spectrum interconnectivity complete with multi-media capability built into the latter and with the former moving into nanotechnologies of unprecedented scale. Everyone must have one or the other (or preferably both) and landlines are being phased out along with desktop computers. The very nature of inter-personal and group interaction has been altered by the advent of portable communication devices and the move into social media. This has had political as well as personal impllications.

The translation of wants into needs is evident in the service sector, which now occupies the majority of GDP is many countries. 15 years ago only the uber rich wanted personal trainers and life coaches. Now there are scads of them (the US has an association of life coaches that numbers 150,000 members), as there are many other types of service that cater to wants translated into needs. Think car and dog groomers, garden landscapers, plastic surgeons that do vanity work–the list of non-productive occupations that service the “wants into needs” trade is immense and only limited by the amount of disposable income available.

Turning wants into needs fuels profit  riding on unsecured advancement.  Making affordable the previously unobtainable, then embedding  the consumption of previously wanted goods to the point that they become needs that influence human behaviour, perpetuates the cycle of profit as well as technological, innovation and service frontiers. But in its success it generates new inefficiencies. Time in and efficiency of production is saved and improved, but time is also wasted in the pursuit of consumption of non-productive consumer commodities or individual interests and pleasure pursuits (all those of you reading this at work will get the drift). Commodity fetichism sets in, and here is where the Achilles Heel of contemporary capitalism ultimately rests.

For any regime to be legitimate in the eyes of its own people, and hence to be stable over time, it must establish and continually uphold the threshold of mass contingent consent upon which its rule is founded. Consent, as readers may remember from a series of posts done on KP a while back (and the literature on which those posts were based), is simultaneously secured and expressed at the economic, social and political levels. Political consent is given through elections and adherence to institutional channels of conflict resolution, redress and voice. Social consent is achieved by mass acceptance of ideological norms guiding individual and group behaviour. Economic consent is given by participation in the system of profit and private property and exchange for incremental gains in mass material standards.

Consent is not given once, forever. It is given contingent on expectations being met at all three levels of operation, the combination of which represents the threshold of mass contingent consent at any given time. Nor are expectations static. Instead, the develop and advance as a result of the translation of wants into needs over time. Mid-career professionals have different material expectations than teenagers on their first job. Adults have different expectations than (and of) their children. They also have different responsibilities, some of which are a product of achieving past expectations. The same holds true for social and political consent. As people become accustomed to one set of expectations they come to want more, and in so doing play into the “wants into needs” logic. In advanced democracies people want more social and political entitlements, if not rights, than did those present at the origins of the democratic state in their respective countries.They also want more things, particularly those that are related to social status and advancement. The threshold of mass contingent consent, in other words, rises over time and in the measure that mass contigent consent is achieved and reproduced.

The emergence of cultures of mass consumption that are disconnected from production have broken the easy translation of wants into needs. Conspicuous consumption is everywhere but the means of achieving it increasingly is not. Uncoupling of production from consumption reverses one traditional logic upon which it was based: that production lead or keep pace with consumption (the supply side argument).  It also undermines demand-side logics because these are based on an assumption that production will be dominated by consumer preferences rather than speculative calculations of gain, and that the production of consumer durable and non-durables would absorb most global capital in advance of consumer demand.

The current phase of globalised capitalism brought with it the uncoupling of production from consumption even as the “wants into needs” syndrome persists. The specific result is that, relatively speaking, global production of goods has declined while the consumption of non-productive commodities has increased. That means that there is an excess of wants with respect to needs. In fact, mass focus on obtaining a proliferation of wants has served to obscure the basics of needs. That makes people feral rather than solidarity-minded, even as the divorce between their material and social priorities and structural reality come into conflict. 

This quickens the process of alienation based on a sense of relative deprivation, which in turn is the source of collective unrest based on the withdrawal of mass contingent consent to the economic project (since it is the feeling of relative as opposed to absolute deprivation that riles people up. If everyone is equally poor and deprived they take comfort in their common condition. When some are much better off than others and the means to achieve conspicuous consumption status are reduced, then collective resentment grows). When material gains are not assured, much less incremental in the passing of one generation to the next, then the structural foundations for a mass withsdrawal of consent are set in place.

Withdrawal of mass contingent consent from the economic project leads to withdrawal of consent at a social level. The turn to collective violence and acts of individual norm violation and misbehaviour are manifestations of a lack of consent to the prevailing social mores, which are seen as instruments of elite control in pursuit of an economic project that no longer allows for the satisfaction of wants turned into needs via material gratification. The withdrawal of mass contingent consent to the ideological project represented by different combinations of social mores and norms is the precipitant for a withdrawl of political consent. The masses turn away from institutional channels of expression, voice and redress. This is a crisis of the political regime.

This seems to be more or less where the UK is at present, although it is just one of many countries in which dominant paradigms are being challenged and in which maintenance of mass contingent consent is under question. That many of the UK looters and rioters had mobile phones, wore designer label clothes and connected via social media does not obviate that fact; it is just another manifestation of the “wants into needs” syndrome turned sour.

The fundamental issue is that the “wants into needs” logic worked well so long as the material production of goods outstripped the wants of the general population. But as production vis a vis consumption decreased and full employment policies gave way to more precarious employment schemes in non-productive work, the gap between needs and wants widened for the majority, forcing concession and backtracking in material lifestyles. That has had social and economic repercussions as the first generations of citizens who will not be as well off as their parents lose faith in the system that their parents consented to.

One might call this situation many things, but the bottom line is that it represents a transitional moment that has no defined outcome but which is certain to include severe dislocations of the economic, social and political sort in the measure that a new threshold of mass contingent consent (however debased, as was the case with the Argentine and Chilean democracies that followed the state terror experiments of the 1970s and 1980s) is not achieved. The outcome is uncertain, and the situation is delicate and dangerous (to again paraphrase the founder of the Italian School of Marxism).

NB: Obviously this post is stems from the previous posts on the UK riots and the fiscal crisis of the Western capitalist State, as well as the comments about them. It also has longer-term roots in a series of lectures that I  used to give in upper division undergraduate courses on worlds systems, modernisation and dependency theory as well as revolutions, insurgencies and counter-hegemonic movements. I will resume writing about other things shortly.

Really too big to fail.

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Market responses to the US debt crisis and financial downgrade have been like king tides as of late, and inevitably speculation centers on the possibility of a “double dip” global recession (this speculation is more than rhetorical. Gold and other precious metal prices have spiked overt the last three weeks as investors flee the stock, bond, commodity and currency markets). There is much talk, some fearful and some hopeful, of a global meltdown of epic proportions. The argument goes that downgrading the US credit rating devalues US Treasury bonds and the dollar, which slows US private investment at home and abroad, decreases domestic consumption, increases unemployment and generally prolongs the recession begun in 2008. This ripples negatively across the globe given the interconnectivity of commodity chains and the central role of the US in them. Be it on the Left or the Right, the belief in state bankruptcy is taken as an article of faith.

The reality is different. What is happening is a fiscal crisis of the Western State rooted in a cyclic crisis of capitalism. Arguments about the blown-out US public debt obscure the fact that it is the result of the same conditions that produced the 2008 recession and which are at root the cause of the next one. For the last thirty years the ‘bubble” of private debt was replicated by the US Government, in the last decade under the strain of simultaneously fighting two prolonged low intensity conflicts. In Europe public debt was in part procured in order to compensate for private debt (via the provision of subsidized entitlements). Capital was lent on looser and looser terms as interest payment calculations came to rival returns on productive investment as the dominant macroeconomic logic. The market in financial derivatives boomed, then busted, bringing with it a crisis in small scale property ownership at the same time that major manufacturers were being bailed out by the US government.

There is a difference, however, between the private sector and the State when it comes to fiscal crises. The analogy between States and firms is overdrawn. Firms go bankrupt; States do not. States may default on loans and suffer the indignities of downgrading by financial institutions, but they do not go out of business. The reason is simple. States  with a presence in the global economy may fail but they do not cease to exist.

Modern states are political entities with other measures of power beyond economic resources, are rooted in historical and cultural ties within more or less fixed borders, have distinct political systems and political regimes that govern them, and are therefore sheltered from the hard realities that beset wayward market agents in a globalised system of production, service and exchange. More importantly with regard to the social and political relations of production, the modern nation-state supercedes the market at any specific moment even while being generally subject to its rhythms and dictates. It is, after all, a capitalist type of state that is not reducible to the productive apparatus.

Imagine even if the US defaulted on its current obligations. Its credit rating would fall further in parallel with the value of its currency, but how long will that last? Even if the US fails its financial obligations, it would be the markets that push for a debt restructuring favourable to it.  As the core of the global economy, the US is simply too big to fail because its financial collapse would reverberate widely and deeply through the world. In fact, with the exception of undeveloped failed states and microstates with minimal economic resources to promote, virtually all modern states can survive a fiscal crisis and default.

 Take Argentina, which in 2000 defaulted on its foreign loans, uncoupled its currency from the US dollar and then renegotiated the terms of its obligations. Since most of the outstanding balance was interest rather than principal, foreign creditors were eventually forced to settle on terms favourable to the Argentines (about 60 cents on the dollar lent). The weakened Argentine peso stimulated commodity exports and attracted foreign investment in resources and primary goods. In spite of endemic corruption, political interference and a multitude of market inefficiencies, over the last five years Argentina has averaged growth rates in excess of six percent and attracted the highest levels of foreign investment ever even while maintaining a large public deficit.

 Greece, the poster child of all that is supposedly wrong with governments and societies that do not couple entitlements with production, is another such case. What would happen if Greece defaulted on its recently rescheduled loans? Will it cease to be? what it could do is drop out of the Eurozone, replace the Euro with the much less expensive drachma, and print money to fund its domestic obligations. Somee foreign investors may flee, but local capitalists will continue to engage the domestic market, people will continue to consume, albeit at lower rates with regards to imported goods, tourists will still flock to see the historical sites and visit the islands, and the country will continue to exist. In fact, should it be successful at restructuring its economy on more internally-focused terms out from under the straitjacket of Eurozone obligations (say, by making its tax collection system more rational and efficient), it could serve as a model for the other “PIGS” nations—Portugal, Ireland and Spain—as well as Italy.

It was Northern European, mostly German capital, directly and channeled through the European Central Bank, which sought to recycle in the European periphery the super-profits accrued during the last two decades of derivative market expansion. These are the creditors who took the risk in the PIGS and who now demand debt repayment schedules rooted in austerity measures and privatization programs. They are also the beneficiaries of a strong Euro, unlike the weaker Southern European economies now under siege. Should debtor countries in Europe decide to reconfigure their economies around a devalued national currency a la Argentina, the European Union will be finished as a currency regulator. Here the sub-regional ripple or contagion effect makes each of the PIGS too big to fail, something that is magnified in the case of the US. Loss of credit rating and a high debt to GDP ratio, in others words, does not translate into State bankruptcy.

 The larger point is that states can default but they cannot be bankrupted because they are not solely economic agents but instead sovereign political actors with interests that transcend a financial bottom line. They can be upgraded and downgraded as financial risks, but even if investment falls and inflation rises, they will not disappear. Think of Brazil and Argentina in the late 1980s when inflation ran at over 1000 percent per year. Did they disappear? Did all foreign investment dry up? Did local markets crash?

Truth be told, capitalism, led by finance capital, was on overheated overdrive for the two decades before 2008, only slowing down briefly after events such as 9/11, even when objective conditions advised against the maintenance of the macroeconomic policies private agents used to calculate the speed of their returns. Western States emulated private agent logics, whereas Asian banks and sovereign wealth funds  were less keen to adopt derivatives-led financial approaches backed by increasingly unsecured loans (although some of that did creep into Asian markets as regional economies attracted Western investment).

Here is where global networks come in. Rather than wage war on States with economies in default, other States that are debt free or less indebted work to cover their investments, and those of their private agents, in the debtor States. This means that even if private agents in the debtor States fail as a result of their market excesses or miscalculation, and State treasuries do n not have enough reserves to cover their debts, States remain open for business, perhaps even on more favourable terms depending on the nature of sovereign debt restructuring agreements (public debt for equity swaps are one measure that can improve State efficiencies as a result of restructuring). Inefficient producers are expelled from the market; inefficient States muddle along.

The entire Western capitalist combine was due for a retrenchment given the downward slope it has been on since spending, both public and private, exceeded productive output in material goods and services. So long as money could be made off of lending money and risks were passed on to increasingly lower-level actors, early 21st century capitalism saw States tax and spend without coherent productive purpose (which mirrored the approach of the financial markets). This was a good political calculation but not a sound economic grounding for future productive growth within current capitalist parameters. Thus the turn towards private sector retrenchment in 2008, with public sector retrenchment now following.

We hear about the demise of various States because they can no longer afford to repay what they have borrowed in order to maintain whatever it is that is considered precious to national identity and political stability–public goods and entitlements in Europe, a war machine in the US. Retrenching Western States may not be able to provide these services in the measure they used to, but thy remain (however diminished) as linchpins of an international system that has its origins in the Treaty of Westphalia rather than Bretton Woods or the Washington Consensus. States are the ties that bind that global system of exchange, and Western States continue to have a central role in it even as the system moves towards increased multipolarity.

Markets and politicians alike need to be cognizant of this fact, because as Keynes pointed out, it is political conditions, not economic conditions, that are the best guarantors of long-term investment. Rather than the economic particularities of a given investment climate at a specific moment in time, political stability offers better conditions for secure future private return. A stable national polity is the best guarantee of profit even if the public books are not balanced. That is the political cost for the social peace that is the basis for economic stability.

Ironically, it was the short-term focus of the macroeconomic logics that propelled the “bubble” that led first to the financial crisis of 2008 and now to the current conditions of political impasse and social instability in many liberal democracies. That is where the convergence of the fiscal crisis of the Western State and the cyclic crisis of capitalism can lead to liberal democratic State failure: when it produces a crisis of legitimacy of the political elite, often confused with regime crisis, that once rooted in and superimposed on the economic downturn and social unrest constitutes an organic crisis of the State. The UK evidences these type of pre-conditions.

Rather than demand zero-sum tax cuts and a diminished State role in guaranteeing the social relations of production,  the priority of the market during a State fiscal crisis should be to to express confidence in the State because delegitimisation of the latter is an absolute guarantee of disasterous market consequences for the private actors involved with them in the event that they are overthrown or fragment. That is where market ideologues have failed in their basic obligation: to help foster the political and socio-economic conditions in which stable rates of private return are generated. Instead, they are exacerbating the crisis with their jitters, demands and panic trading. This will not lead to an organic crisis in most liberal democratic states (which will muddle along), but it could produce legitimacy crises in newly democratic states or those with significant social cleavages. Even then the prospect of State, as opposed to regime or private sector failure, is unlikely.

All of which is to say that when it comes to the fiscal crises of modern Western States, this too shall pass.

 

 

Rioting Poms.

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A short while ago we were treated to the spectacle of a Royal Westminster wedding, a royal tour of Canada and the US, then another lesser royal wedding. The UK and colonial media went crazy with 24/7 coverage of the fairy tale personae involved, and the image conveyed was of stability and continuity in British foundational politics.  All was well in the Realm.

In the months since the first royal celebration things have grown dimmer. There is the hacking scandal in which politicians and the police appear to be complicit in the illegal tapping of private information by media corporations (primarily but not exclusively Murdoch-owned assets). Added to this sign of elite criminal coziness, now there is a police shooting followed by wildcat riots that represent criminal opportunism rather than outrage about the death itself. The UK media are swamped with reporters, police spokespersons and politicians all chanting in unison about the “mindless thuggery” and criminality of the youth who are widening the scope of violence beyond Tottenham and London itself.

The official emphasis on criminality cannot hide a number of things that depict a reality that s a far cry from royal bliss. The youth involved, while criminally opportunistic in their looting and vandalism, are a mix of ethnicities, but all seeming of working class or unemployed status (On TV I actually saw some young Hassidic Jews amongst the rioters in Tottenham). Some may have participated in earlier demonstrations and rioting about restrictions on access to higher education and the cost of basic services. They appear to be coordinated–in yet another tweeter and smart phone fashion–enough to stay a step ahead of the thinly stretched British Police. The fire service is not attending to full alarm fires because of fears for their security and the Police cannot predict when the next smash, burn and grab will happen. The mob is ahead of the Man, and the mob is angry.

So far the British government has declined to send in the army even though suggestions have been made that they have very robust anti-riot capabilities in Northern Ireland. The language used to justify that non-action is precious: the government states that it does not deploy such hard assets on British soil. So the riot police in London chase rioters using shields, helmets, horses and batons while the British Army uses armoured personnel carriers, water cannon trucks and live ammunition to keep the peace in Belfast and beyond. Some Imperial habits are hard to break, even though the Empire is long gone and its post-colonial consequences have come home to roost in the capital itself.

The hard fact is that the criminality of the rioters is a political act whether or not those involved or the government and corporate media would like to admit it. At a time when the PM, Police Commissioner, Mayor of London, and assorted other leading officials were on vacation in places like Ibiza, Tuscany and Milos, the youth now on riotous display swelter in the housing estates where unemployment, racial separatism, ethnic conflict and everyday economic insecurity are rife. Like their counterparts in any number of less developed countries, they can see up close the material lifestyles and commodity consumption of the royals, celebrities, sportsmen and corporate elites, but do not have (and likely will never have) the means of access to them. Worse yet, they live in a world where the institutional framework is stacked against them, leading to the violent turn inwards when the opportunity presents itself. The Police response is to ask parents to lock up their children.

Be it Marx, Luxemburg, Lenin, Guevara, Marighella, Ayman al-Zawahari, or Muqtada al-Sadr, revolutionaries understand the potential of the criminal mass engaged in collective violence. Lumpenproletarians are the street vanguard who, however unconsciously, help to bring social contradictions to a head and expose the weakness of the elite response and the inherent fragility (sclerosis?) of the status quo as a whole. Where instigated or abetted by politically conscious cadres (and there is some evidence of this at play here), their actions are designed to accelerate the organic crisis of the State, in which economic, social and political cleavages overlap and congeal into compound fractures not resolvable by force, reform-mongering or after-the-fact piecemeal pacification. Given the ongoing repercussions of the 2008 recession and the increasingly global debt crisis, and no matter how they are disguised by ethnic and religious division, the structural foundations for a larger class war in the UK may be fixing in place.

This does not mean that the British government will not be able to quell the disturbances this time around. But what these riots may be is a dress rehearsal for more to come, perhaps in conjunction with the Olympics next year, where militant planners accelerate the pace, focus and intensity of mass collective violence at a time when the British elite are exposed to global scrutiny and their security resources are already working at full capacity. That raises the issue of whether the official approach to rioters will shift to the more lethal Northern Irish “solution” set, and whether those charged with adopting a more lethal approach will have the ideological conviction to respond in such a way to the actions of fellow citizens rather than foreigners (I note that it will be possible for the official narrative  to scapegoat “outsiders” drawn from minority ethnic communities that hold non-Western beliefs, but even that may fail to overcome foot soldier or beat police reluctance to turn their weapons on their own).

In any event, we should see the riots for what they really are: an expression of mass subordinate discontent and disaffection, the product of profound alienation, expressed through collective criminal violence operating in seemingly opportunistic and decentralised fashion in the face of official incompetence or lack of will. That, by most reasoning, is a good sign of a pre-revolutionary situation, one that has the potential to become more of an existential threat to the status quo should tactical guidance and coherent ideological justification be given to it. After all, if what we are experiencing is a crisis of capitalism in the liberal democratic world, then it was only a matter of time before superstructural conditions and precipitating events would combine into a violent rejection of the system as given in countries in which the societal contradictions were most apparent. Be it in Greece, in France, in Spain or now in the UK, should these contradictions continue to fester and combine, it will not be Tea Party-type clones that will lead the insurrectionary charge, nor will they be as polite.

 

PS: Before Red Dave and other ideologically militant readers opine that I am belatedly joining their ranks, let me state that I do not see this as the beginning of a global revolution or necessarily of one in the UK. It is a pre-revolutionary moment, which means that the UK government still has the ability to engage in divide-and-conquer, selective application of force and reform-mongering tactics (along the lines I mentioned with regard to the Arab uprisings in an earlier  post dedicated to them). There is a fair bit of ground to cover before the Arab Spring gives way to a Red European summer.