Contents Neoliberalism: Home Page Eating The Future: Neoliberalism's Addiction to Growth Global Economy: Home Page Neoliberal Corporate Government Plato v Illich: Home Page Towards Democracy War on Terror
Europe Oscillates Trashing Democracy, Society, Environment

Coalition: A Warning from Chile

Ian Tomlinson

'Sustainability' Cameron

Workers on Doomed Rig ...

The Afghanistan Protocol

Why NATO Should Withdraw from Afghanistan

Explosive Leaks Provide Image of War from Those Fighting It
Britain's Guardian newspaper, the New York Times and SPIEGEL have all vetted the material and compared the data with independent reports.

All three media sources have concluded that the documents are authentic and provide an unvarnished image of the war in Afghanistan -- from the perspective of the soldiers who are fighting it.

The reports, from troops engaged in the ongoing combat, were tersely summarized and quickly dispatched. For the most part, they originate from sergeants ...

Nearly nine years after the start of the war, they paint a gloomy picture ...
Task Force 373: The Secret Hunters
A report on June 17, 2007, for example, includes a warning in the second sentence that this operation of the TF 373 must be "kept protected."

Details about the mission could not be provided to other countries contributing to the ISAF forces.

The aim was to kill prominent al-Qaida functionary Abu Layth Al Libi. The special forces suspected that the top terrorist and several of his followers were present at a Koran school the soldiers had been staking out for a number of days.

But after the impact of five American rockets, instead of finding Al Libi, the ground forces discovered six dead children in the rubble of the school.

A further seriously injured child was also found but could not be saved ...

Der Spiegel 
The Flaws of the Silent Killer
... the secret memos reveal the drawbacks of a weapon that has been lauded by the US military as a panacea, a view shared by the president.

In his short time in office, Barack Obama has unleashed double the number of drone missions ordered by his seemingly trigger-happy predecessor, George W. Bush ...

Each crash costs the government between $3.7 million (€2.8 million) and $5 million.

The US Department of Defense accident reports show that system failures, computer glitches and human errors are common occurrences during drone missions.

It seems that serious problems were ignored because of the need for the drones to be deployed as quickly as possible ...

It is not just the costs incurred by these crashes that worry the US military.

Even the smaller reconnaissance drones are packed with complicated computer technology ... out of fear that important information could fall into the hands of the Taliban, each drone crash necessitates elaborate -- and dangerous -- salvage operations.

Der Spiegel 
The Secret Enemy in Pakistan
The Directorate for Inter-Services Intelligence (ISI), Pakistan's secret service, originally helped to build up and deploy the Taliban after Afghanistan descended into a bitter and fratricidal civil war between the mujahedeen who had prevailed over the Soviets and forced their withdrawal.

Despite all of the reassurances from Pakistani politicians that the old ties are cut, the country is still pursuing an ambiguous policy in the region -- at once serving as both an ally to the US and as a helper to its enemy ...

The documents clearly show that the Pakistani intelligence agency is the most important accomplice the Taliban has outside of Afghanistan ...

The country is an important safe haven for enemy forces -- and serves as a base for issuing their deployment. New recruits to the Taliban stream across the Pakistan-Afghan border, including feared foreign fighters -- among them Arabs, Chechnyans, Uzbekis, Uighurs and even European Islamists.

According to the war logs, the ISI envoys are present when insurgent commanders hold war councils -- and even give specific orders to carry out murders ...

Der Spiegel 
Intelligence Agents Flooding in Data
Der Spiegel  25 July 2010    Afghanistan    War on Terror Log    
Released Nato files 'only scratch the surface' ...
How US marines sanitised record of bloodbath
Wikileaks reveals Afghan civilian deaths
Afghanistan war logs: the unvarnished picture
Combat Outpost Keating
Inside the Fog of War
Pakistan Aids Insurgency
Afghanistan war logs

John Locke's Warning

'The new elite'

'It's far too late'

'There's no such thing as society'

The End of Local Government

Europe

A Matter of Sovereignty?

Neoliberalism

The Washington Consensus

Economic Democracy

Commodifying the Public Sector

Consumerism - Individualism

The General Will

Global Labour Market

'War on Terror'

The Corporate State

Political Reform

Enemies of Democracy

Towards the Good Society

Losing Democracy

In the last few years there has been no shortage of ideas for making Britain a more democratic place.

The failure to adopt any reform might well account for The Independent's report that:

A recent ComRes poll ... showed 18 per cent of the electorate were "certain not to vote" – up from 11 per cent from the same time in 2005.

Only 44 per cent said they were "absolutely certain to vote" ...   IND

We need to focus on why change is not taking place, and is unlikely to do so.

The following is a list of some of the factors which seem to me to explain the reasons for the growing degredation of democracy:

  1. The absence of accountability; [4.5]


  2. The transfer of powers away from local communities to central government; [5]


  3. The transfer of powers away from central government to the European Union; [6]


  4. The adoption of the 'free market' economy, and the transfer of powers to the IMF, and the WTO; [7]


  5. 'Choice' and the growth of 'consumerism' as driven by the demands of the 'free market' economy; the supremacy of market norms and extreme individualism; [8]


  6. Government by the 'General Will' [9]


  7. Why Neoliberalism needs the General Will, Immigration [10], and the 'War on Terror' [11].




The end of the Public Service Ethic

The merging of the public and private sectors entails the end of the public service ethic which is described - and lamented - by David Selbourne [3].

The strange marriage of New Labour's corporatist process of governing to the 'libertarianism' in the economic and social spheres, is further evidenced by:

  • the bogus rhetoric of 'choice' in the educational and health sectors,
  • the open encouragement of binge drinking, and
  • the switching of the role of the police from fighting crime to fighting a panoply of, er, 'threats' to the neoliberal 'free' markets.   [PSB]
Libertarianism
The Illusion of Choice

David Smail [4] focuses on the impact of powerlessness on individuals who are unable to adjust to a society based on unfettered competition, as does Oliver James.   'Blatcherism'

Finally, since market norms are strictly short-termist in operation, it's vital to consider the unseen threats posed by the 'free' market's addiction to growth.   [13]



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"Of the Legislative, Executive and Federative Power of the Commonwealth.

"The Legislative Power is that which has a right to direct how the Force of the Commonwealth shall be imploy'd for preserving the Community and the Members of it.

"But because those laws which are constantly to be Executed, and whose force is always to continue, may be made in a little time; therefore there is no need, that the Legislative should always be in being, not always having business to do.

"And because it may be too great a temptation to human frailty apt to grasp at Power, for the same Persons who have the Power of making Laws, to have also in their hands the power to execute them, whereby they may exempt themselves from Obedience to the Laws they make ...

" ... to their own private advantage, and thereby come to have a distinct interest from the rest of the Community, contrary to the end of Society and Government ... "

John Locke: Second Treatise of Government, para 143.
Andrew Tyrie
Speaker uses 319-year-old law to gag reports on ID card scheme

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Anthony Sampson on 'The new elite'

The new elite is held together by their desire for personal enrichment, their acceptance of capitalism and the need for the profit-motive, while the resistance to money-values is much weaker - and former anti-capitalists have been the least inclined to criticise them once in power.

It was a change among Tories as well as socialists. Harold Macmillan had kept his distance from bankers - 'banksters' he liked to call them - and Ted Heath talked about the 'unacceptable face of capitalism'.

But Margaret Thatcher's government was full of bankers, and Tony Blair said nothing about the greed in the boardrooms or the abuse of corporate power.

Many businessmen felt more at home with New Labour than with John Major's administration.

As government became more dependent on private investment and party donations, both ministers and permanent secretaries came closer to bankers and to corporate chiefs: the centre of gravity of the power-world was shifting away from Westminster towards the City.

"The new Establishment was looking like one giant boardroom, linked by common interests and agreements.

From:  'Who Runs This Place?'  Anthony Sampson  John Murray 2005

Amazon.co.uk
Blog
Corporate State Britain
Revolving-door culture leaves government full of clever bankers
MPs who tried to stop you seeing their expenses
MPs' expenses in detail
MPs' expenses: Full list

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It's far too late ...

There are no boundaries of class or party among those who sense, or know, that British society is in profound trouble. Yet the consensus that this anxiety has created remains largely unexpressed.

Politicians dare not tell the whole truth about it for fear of adding to public alarm, and losing by it. Complaint over the quality of public provision, or about the education system, or about the statistics of violent crime regularly break surface, but in fragmentary fashion ...

Telegraph.co.uk
Alcohol, Cannabis & Nicotine
David Selbourne
Libertarianism

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'There's no such thing as society'

"Distributed throughout developed, Western society there is, as Foucault put it, an apparatus of power now all but perfected in obscuring from the vast majority not only the extent of injustice and inequity globally, nationally and locally, but also the ways in which injustice and inequity cause suffering."

David Smail
David Selbourne
Family Breakdown
Gertrude Himmelfarb's Victorian Virtues
Libertarianism & Methodological Individualism
No such thing as society
Oliver James
On the Mechanistic Modelling of Human Behaviour
Vulnerability and Violence
Youth Unemployment and the Cost of Pareto Efficiencies

Gangster Economics
MediaLens
Neoliberalism
The Corporate State
The Trap
The triumph of greed
Vulture Funds

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'We need to change our policies as well as our leader'

Michael Meacher pinpoints the problem of accountability:

"So what is wrong with British politics today? The single biggest problem is the lack of accountability of power. It underlies every issue where the party and the public disapproves of government policy but cannot change it. There is little point in lobbying parliament or taking to the streets in protest at war in Iraq or Iran, or the replacement of Trident or a new round of nuclear power stations, or the marketisation of public services, if the government (for which often read the prime minister) has already made up its (his) mind, and can't be held to account. The checks and balances have all but disappeared.

"What is needed is a new framework of power that restores the authority of the House of Commons, secures effective ministerial control of the civil service and moves to a more constitutional type of premiership. Parliament, through strengthened select committees, chosen by a secret vote of the whole house in accordance with party numbers and not by the whips, should have statutory power to ratify cabinet appointments, summon ministers and require disclosure of all relevant documents, to appoint external committees of inquiry where the government may be reluctant to do so, and to table its own motions for debate on the floor of the house at least once a month, with a vote at the conclusion."
The Guardian
A New Politics

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The End of Local Government

'Thatcher's favourite test-bed for radicalism'

Replicating the 'free' market

Simon Jenkins relates Margaret Thatcher's weird mix of private sector methods and centralist modes of control:

She might import into the public sector some of the disciplines that recession had visited on the private sector, but for most public services some means short of privatization must be found.

Discipline must not mean loss of control. ...

On any psychological spectrum from freedom to control there was no doubt where Thatcher stood. She might espouse freedom in theory, but in practice she craved control ...

The result was the most intensive refashioning of public services since the 1940s ...

To Thatcher and Lawson the failure of the public sector to deliver measurable improvements in services was a symptom of ingrained socialism. This had to change. If an activity was not suitable for privatisation it must at least be managed by some proxy for it.

This was implemented in a series of reforms ... culminating in a programme to hive off distinct government activities as semi-autonomous agencies ... civil servants were no longer 'secretaries' but became executives, directors and managers.

Each was increasingly chained to budgets, targets and performance assessments, quantified so incentives could be generated and rewarded.

How else ... would people be motivated other than by money?

The result was the introduction of into government of tools drawn from the arcane world of management consultancy.

They included re-engineering, internal prices, out-sourcing and virtual markets, for everything from defence supplies to government hospitality. ...

Inter-agency contracts were to be established ... Purchasers had to separated from providers and everyone defined as a buyer or seller. This dichotomy, the 'purchaser/provider' split', supposedly replicated the free market.

Initially the impact was concentrated on Thatcher's favourite test-bed for radicalism, local government.
Centralising Services
[Thatcher's] ... attention fastened on a group of services whose leadership was at some remove from the heart of government, notably the health service, housing, schools and universities, urban renewal, and local government.

In most democracies these activities were either constitutionally protected or were regional, provincial or municipal in responsibility. ...

To Thatcher these were just the services most afflicted by socialism ... They had to be purged by being brought within the penumbra of her office.

Aspects of delivery might be subject to private-sector discipline but never with loss of control. ...
Housing

I've selected housing from Simon Jenkin's book because it illustrates several key strands in Thatcher's ideology: hostility to elected local government; hostility to subsidised services; centralised control; and finally the growing stigmatisation of the marginalised: the 'losers' who we are now encouraged to dismiss with contempt.

For Thatcher home-ownership embodied all the vigorous Tory virtues: secure saving, family values, household gods, a lifetime of hard work rewarded. ... She was adamant that the state should use its resources to help people own their houses.

This form this took was tax relief on mortgage interest payments.

Despite annual pleading from the Treasury, she regarded 'middle class subsidies' as a fit compensation for years of taxes spent on the undeserving poor. ... It was her sort of social engineering.

The cost of mortgage interest tax relief ... increased by 200 per cent in real terms between 1980 and 1990, to stand at £7 billion. ...

Needless to say local councils and their tenants enjoyed no such indulgence. ...

When ordering councils to sell houses, built partly with local money, she felt she should ... leave the receipts with the locality ... But [she] had no desire to leave local authorities to disperse [it]. ... She was determined to impose her own view of how the nation's housing stock should be financed an allocated.

... Most council anger was directed at Thatcher's insistence on discounts of up to 60 per cent ... Sales raised £18 billion during the 1980s ... [but] ... The cost of discounting was estimated at 32 billion overall.

For its part the Treasury could not bear to see such money pouring into council coffers. Lawson used his powers to restrict the right-to-buy revenue for investment ... He was determined to treat the money as his own ... in 1987 he boasted a £1 billion undershoot in ... public borrowing [but] did not mention that it reflected a surge of £2 billion that year in right-to-buy receipts. ...

While council houses were being sold, they were not being built.

In the 1970s, local councils built or restored 200,000 units a year. By the end of the 1980s the total was down to 13,000 and falling. A chapter in the history of civic Britain was ending.

So, how was the "statutory duty" to meet housing needs to be fulfilled?
Not by elected councillors!

Charitable housing association had long complemented local housing departments, usually more efficiently. Thatcher duly heaped praises on them.

Housing associations received 90 per cent of their money direct from central government through a quango, the Housing Corporation. This body could now do no wrong.

In 1979 the corporation had 100 staff and a budget of £50 million. When Thatcher let it had 700 staff and a budget of £1 billion. It was sponsoring the construction of three times as many houses as were local councils. ...

[Thatcher's] response to the poor image of inner-city housing was a burst of ad hoc initiatives which came to characterize all Whitehall intervention in this area of the welfare state. The late 1980s saw Housing Action Trusts, Community Housing trusts, Urban Housing Renewal Units, and Priority Estate Projects.

Under Major and Blair the pace of such intervention quickened, except that the names were of the 1990s: Estate Action, Rough Sleeper, Tenant Choice.
Thatcher & Sons | Simon Jenkins | Penguin Allen Lane 2006
The legacy of Margaret Thatcher
Ponzi Housing Market

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Reform need not mean privatisation
if public services are localised

First, a 21st-century state will not be as centralised as the one that exists today. The notion that the budget for maths classes in Oldham or hip replacements in Truro should be set in London is indefensible. Services, most agree, should be decentralised. That can't just mean relocating certain agencies to York or Newcastle, to do the same job of centralised, top-down management from a different place. It has to mean genuine devolution, allowing a town or city to run its own services from start to finish.

Jonathan Freedland, The Guardian, 17 May 2006

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Three priorities to improve UK democracy

... constitutional reform should concentrate on three priorities: to re-establish the House of Commons as the central political authority; to straighten out the way we pay for politics; and to re-invent local democracy. All else is a sideshow. ...

Britain has the most centralised political system in Europe. The House of Commons is the people’s national assembly but has been sidelined in public policy, except to give legitimacy to Downing Street decisions.

It is too easy for the government to get its way without its decisions being seriously tested by an assertive legislature. ...

The most difficult constitutional matter is local democracy. Britain just does not have proper local units to devolve power to. Across Europe, municipalities have an average population size of about 10,000 inhabitants. In Britain, districts average about 110,000 inhabitants and metropolitan boroughs in England more than 300,000.

British democracy needs a system of municipalities and many more elected politicians to represent citizens’ interests. ...

FT 20 December 2007

More Links

More from Simon Jenkins
"Blair's failed centralism"
Charles Leadbeater: The DIY State
Ecotowns
Gulf between rich and poor cities widens
Home Ownership
Leeds not Birmingham
Public Sector Soviet Tractor Factory
Quangos



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The European Union

Europe Oscillates

The EU has an array of democratic deficits.

First, and most importantly, it hovers between 'intergovernmentalism' and 'supranationalism' making lines of accountability even more problematic than they are inside national governments. openDemocracy

All other problems with EU democracy flow from this dichotomy.

Comparison with the US constitution further highlights the bizarre nature of EU institutions and the way they relate to each other.

The three bodies concerned are the EU Commission, the Council of Europe and the European Parliament.

Parliament and Council are described as

... two chambers in the bicameral legislative branch of the European Union, with legislative power being officially distributed equally between both chambers. However there are some differences from national legislatures; for example, neither the Parliament nor Council have the power of legislative initiative. In Community matters, this is a power uniquely reserved for the European Commission (the executive) ... [Wkp]

This is akin to a Whitehall department instructing the House of Commons to examine a bill, allowing MPs the power to amend or reject it.

If the Parliament does wish to initiate legislation, it has first to get the Commission to draft it.

Control of the executive - the Commission - rests with the Council, which appoints the President of the Commission. Parliamentary committees vet appointments to the Commission - as would happen in the US - but can only reject the commissioners as a body not individually.

Budgetary matters are similarly complex:

The legislative branch officially holds the Union's budgetary authority, powers gained through the Budgetary Treaties of the 1970s.

The EU's budget is divided into compulsory and non-compulsory spending.

Compulsory spending is that resulting from EU treaties (including agriculture) and international agreements; the rest is non-compulsory. While the Council has the last word on compulsory spending, the Parliament has the last word on non-compulsory spending.

The institutions draw up budget estimates and the Commission consolidates them into a draft budget.

Both the Council and the Parliament can amend the budget with the Parliament adopting or rejecting the budget at its second reading. The signature of the Parliament's president is required before the budget becomes law. ... [Wkp]

I can find no complete list of powers which have been passed to the EU, the nearest thing to it is at [FedEE].

If your time is not limited, euroknow describes itself as a 'Concise Encyclopedia of the European Union'. I dread to think what the full version looks like!

There is a larger issue behind the constitutional mechanics:

What is Europe good for?

The fault-lines which run through national politics are present on a larger scale within the EU. What started as a project supported by Europe's Social and Christian Democrat parties has gradually become a vehicle for the promotion of neoliberalism.

Richard Corbett takes up the story:

The EU ... has been a positive force for workers, enshrining in its work the trade union values of social inclusion and solidarity, welfare states and public services, and worker participation and collective bargaining ...

However, in recent years, social Europe has floundered. Its previous achievements remain on the statute book, but new ones are few and far between.

The Barroso Commission has had a somewhat one-sided focus on market liberalisation which, combined with the lack of progress in the review of the decade-old directive on working time and the delays in adopting a directive on vulnerable temporary agency workers, is leading to rising trade union dissatisfaction ...

Guardian 12 Septmber 2008

'Communitarian Citizenship'

European Union: after the reform treaty
EU Lisbon Treaty pushes privatised superstate
Global Labour Market
Social Europe
The Lisbon Treaty: A Very Real Danger

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The Euro

How Brussels Is Trying to Prevent a Collapse of the Euro

Sub Text: It's about relinquishing more sovereignty to Brussels

Cohesion and Stability
The Commission doesn't hold Greece solely responsible for the current euro woes. Experts close to Economic and Monetary Affairs Commissioner Joaquín Almunia say nearly every participating country is compromising the cohesion and stability of the common currency.

"The combination of decreasing competitiveness and excessive accumulation of national debt is alarming," the experts wrote in a recent report, adding that if the member countries don't get their problems under control, it will "jeopardize the cohesion of the monetary union."

Differing economic development within the euro zone and a lack of political coordination are to blame, they say. In the more than 10 years since the euro was introduced, the Commission states, it has become clear that simply controlling the development of member states' budgets is not enough. What that means, more concretely, is that the stability provisions stipulated in the Maastricht Treaty to regulate the common currency aren't working, and member states need to better coordinate their financial and economic policy measures.

That is precisely what euro skeptics have said from the beginning -- that a common currency can't work in the long run without a common economic and financial policy. The member countries' governments ignored these objections, unready to give up a further aspect of their national sovereignty.

Now politicians are facing a difficult decision: Should they continue as they have, thus potentially undermining the euro's ability to function? Or should they yield a portion of their national sovereignty to Brussels? ...

Der Spiegel 09 Feb 2010
A Question of Sovereignty

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Neoliberalism: The Market Economy

Neoliberalism and education

Underlying governmentality is a more general neoliberal vision that every human being is an entrepreneur managing their own life, and should act as such.

In terms of moral philosophy this is a “virtue ethic”, in which human beings are supposed to act in a particular way according to the ideal of the entrepreneur.

Individuals who choose their friends, hobbies, sports, and partners, to maximise their status with future employers, are ethically neoliberal.

This attitude is unknown in any pre-existing moral philosophy, and is also not part of early liberalism.

Such actions are not necessarily monetarised: they represent an extension of the market principle into non-economic area of life, again typical for neoliberalism.

Neoliberalism is a philosophy in which the existence and operation of a market are valued in themselves, separately from any previous relationship with the production of goods and services, and without any attempt to justify them in terms of their effect on the production of goods and services; and where the operation of a market or market-like structure is seen as an ethic in itself, capable of acting as a guide for all human action, and substituting for all previously existing ethical beliefs.

The idea that everyone should be an entrepreneur is distinctly neoliberal.

For neoliberals it is not sufficient that there is a market: there must be nothing which is not market.

Neoliberalism and education

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The Neoliberal Agenda

The Washington Consensus
  1. Privatisation of public enterprises;
  2. Deregulation of the economy;
  3. Liberalization of trade and industry;
  4. Massive tax cuts;
  5. 'Monetarist' measures to keep inflation in check,
    even at the risk of increasing unemployment;
  6. Strict control on organised labour;
  7. Reduction of public expenditures, particularly social spending;
  8. The down-sizing of government;
  9. The expansion of international markets;
  10. The removal of controls on global financial flows.

There is an array of anti-democratic aspects to the Washington Consensus.

First, it was never presented to voters as a coherent package to be debated and subject to vote - a referendum would have sealed its legitimacy - and second, it has effectively removed the economy from the arena of political debate since, for example, a proposal which ran counter to any of these ten points is unlikely to get through Parliament, and, in any case might fall foul of European law, or agreements entered into with, say, the World Trade Organisation.

This explains why policy differences between the mainstream parties are now marginal, and largely presentational, since the Washington Consensus has bi-partisan support.

This is also the reason for the relaxation of business regulation - points two, three and six - since it's an axiom of 'free' market theory that regulation interferes with - distorts - the workings of the market. [RFRB]

It's also the reason for the gradual winding-down of the social state - points seven and eight - instanced by the run-down in the quality of care for the elderly, and the mentally ill .   Depression Report     Karen Reissman     Social Insurance (?)

Yet, as David Smail, Oliver James and Paedar Kirby have pointed out, neoliberalism inevitably leads to increased incidence of conditions like anxiety and depression.

The confirmation that prison in now the 'default' option for the mentally ill is matched by research confirming that the size of the prison population is inversely proportional to spending on welfare.     [CaS]

The neoliberal agenda also gives rise to a range of policy oxymorons, most notably that involving Gordon Brown's 'war' on child poverty. Brown has pursued two incompatible aims: lower taxes on the rich, and the alleviation of child poverty.

Ex-Business Secretary John Hutton's speech in praise of "aspiration and ambition" highlighted the contradictions involved. [GD]

He was able both to call on us to "celebrate huge salaries" and re-affirm the committment to the 'war' on child poverty, apparently failing to notice that the rich no longer provide the revenue necessary to win that campaign.   [IFS]

Nor should this surprise us: under the terms of the Washington Consensus redistribution of incomes is in breach of points 4, 7, and 8, so the money has to be obtained from a growing range of stealth taxes which fall hardest on people outside the 'tax avoidance' bracket.


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In the absence of economic democracy

Brown warns Kraft on jobs as Cadbury's board recommend £12bn deal

"The one thing I want to say is this: we are determined that the levels of investment that take place in Cadbury's in the United Kingdom are maintained. And we are determined, of course, that at a time when people are worried about their jobs, that jobs in Cadbury can be secure".

Guardian

The Kraft takeover of Cadbury epitomises the Darwinian nature of corporate capital in its 21st century incarnation.

Brown is either deceiving himself and/or the Cadbury workforce when he makes a commitment which he has no power to enforce.    [MG Rover]

For them the takeover offers heightened insecurity, while The Guardian reports that ...

The chief executive of Cadbury stands to pocket cash and shares worth £12m from the company's £11.9bn sale to the American food giant Kraft in a deal that also hands fees of at least £250m to legions of City advisers.
Gdn    Corporate Sociopathy

The corporation is a sociopathic form of ownership which completely ignores the interests of workers, the wider community, and the eco-sphere.    AA/Saga

Interest in 'social' forms of ownership has largely vanished, to the detriment of everyone outside the orbit of Davos Man.

What is needed, argues William Davies, are ...

Co-operative structures, in which labour hires capital rather than vice versa ...

The original meaning of ‘profit-sharing' is also worth returning to: the notion is that, once both capital and labour have received their ‘wage', that any remaining surpluses should be split equally between the two.

Companies that were organised to uphold this principle would still be capitalist and profit-making, but they would not be profit-maximising.

This represents a positive departure from the neo-liberal, shareholder value-oriented model of the firm ...     [oD]

The results of the failure to pursue economic democracy were illustrated by the National Equality Panel's report on inequality in the UK:

The report finds:

Parents of public school-educated sons can expect their children to be paid eight per cent more by their mid-20s than boys educated at state schools;

At school poor British white boys are well below the national average by the time they are seven, deteriorating further after they are 11.

Women are paid 21 per cent less than the national average, despite women into their 40s having better qualifications than men;

Britain has one of the most unequal societies in the world, with income inequality ahead of Ireland, Japan, Spain, Canada, Germany and France. Inequality is worse in England than Wales and Scotland;

A typical professional on the verge of retiring is worth nearly £1?million compared with just £59,000 for someone who is long-term unemployed.

Poverty rates are among the worst in Europe, with only Italy, Spain and Greece faring worse.

Average and below average White British children are less likely than those from minority ethnic groups to go on to higher education.

More than half of children educated at private schools, andmore than 40 per cent of those with professional parents, go to thetop Russell group of universities.

Two-thirds of those with professional parents receive firsts orupper seconds, but only half of those with unskilled parents.

Telegraph 27 Jan 2010
Autonomous Individualism
A Utopian Experiment
A Violent and Aggressive Culture
'Branch Office Britain'
Corporate Sociopathy
Global Labour Market
Governmentality
Liquid Modernity
Rich-Poor Divide
Bhopal 25
Economic Democracy
Gangster Economics
Protectionism: is it so bad?
Mandelson has seen the light
Reinventing the Firm
Steve Acheson
The Wrecking Crew

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'Commodifying' the Public Services

Labour is 'worst government ever'

... Mr Serwotka said Labour had systematically undermined civil servants by privatising parts of the public sector.

“I have to say to you this, that if you judge a government by how it behaves as an employer, this is the worst government in the history of this country,” he said.

“I tell you why. Not because I have any illusions that David Cameron is going to be better, he’s going to be dreadful, but the facts speak for themselves.”

He said the civil service had lost 100,000 jobs in the last 13 years and more services had been privatised than under the Tories. Some Government departments had imposed pay freezes for the last three years and others increased salaries by only one per cent ...

“I can tell you absolutely that even though I worked on the frontline under the governments of Margaret Thatcher and John Major," he said. "All of our members tell us there has never been a worse time to be a civil servant than under the current Government.” ...

Telegraph  05 April 2010    

Dr Grumble

NHS Logistics

Prison & Probation


Broken Forms of public Service
Hospitals granted foundation status despite a plethora of failings
GP care facing 'franchise threat'
Hospital and GP reforms 'flawed'
Independent Reconfiguration Panel
Keep our NHS Public
Maternity units closed to mothers

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The Culture of Consumerism

“What is new about the culture of consumerism is that consumption is now elevated to the predominant value and central activity of human culture, so that it is no longer an activity to whose primary purpose is to satisfy needs (either biological or spiritual) but rather an activity driven by induced wants; for this reason, it never satisfies since new wants are all the time being created by the culture ... commodities are therefore being consumed not for themselves, but rather for the meanings associated with them, as is well illustrated by the central role played by branding in this culture.”
“The symbolic meanings attached to consumption are created by a powerful transnational advertising industry. This is now one of the most globalising industries with a small number of companies having interests in countries throughout the world.” [VaV]

The question arises: how do people on modest incomes participate in globalised consumerism?

“Through the use of multiple credit cards, people can achieve levels of consumption beyond what their income would permit. By this means they achieve their social identity and sense of belonging, thereby replacing an earlier practice of citizenship through belonging to political parties, trade unions and other collective organisations ...”
Wealthy and Asocial

"Chelsea Tractors" Sports Utility Vehicles, 4 x 4's - whatever - have become the symbol of what it means to be wealthy and asocial.

First, they demonstrate power. Short of driving a tank, you couldn't be much safer. And other people's safety is a matter for them. "It's not my problem ... they're losers."

Second, they demonstrate success as a consumer: you want the best, you can afford the best, you're worth it.

Third, they demonstrate the weakness of government and regulation. Only the Mayor of London has had the guts to confront them.

Fourth, they are emblematic of the 'affluenza virus' - the end of 'society' and social obligation - which is essential to the success of corporate-capital-globalism.

Corporate-capital thrives on the creation of envy and discontent; concern for others, and for the general good, has vanished. It recognises two classes of people: winners and losers.

The balance between the individual and the collective has now swung to the extreme end of individualism.

Democracy squeezes into the gap between collective societies, like the Soviet Union and Nazi Germany, and individualistic societies where relationships have become, in Zygmunt Bauman's language, "liquid".

Another way of looking at it is via Polly Toynbee's "caravan" metaphor. In an individualised society, the 'convoy' has broken up into individual - and self-contained - units. Relationships with other 'units' are unimportant.

More Links

"The 4x4 car did not stop at the scene"

A nation of 'obese ten-year-olds'
Autonomous Individualism
Buy it, wear it, chuck it
Family Breakdown
Libertarianism
No such thing as society
Privilege and privation
'£3.65bn cost of lost generation'
The problem with school 'choice'
Spend! Spend! Spend!
The Trap

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Governing By The General Will

The large state finds other jobs

Having lost the management of the economy, the state - which should have 'withered away' if neoliberal theory were correct - continues to thrive by finding other tasks, namely micro-managing people's lives from Whitehall.

An excellent example of this trend is the proposal to set targets for schools in areas not previously central to education:

Schools may be judged on teenage pregnancy rates and drug problems
Plan to include 18 social targets in Ofsted reports

Schools will be made to keep records of teenage pregnancy rates, pupils' drug problems, criminal records and obesity levels under government plans to give parents a true picture of children's lives ... a discussion document from the Department for Children, Schools and Families, suggest schools would become accountable for 18 new targets, from bullying and neglect, to what happens to pupils after they leave school.

Sources said the 10-page document, entitled Indicators of schools' performance in contributing to pupil wellbeing, calls for Ofsted inspectors to judge schools on the wide range of measures in addition to existing criteria such as exam results and exclusion rates.

The measures could be implemented by Ofsted from 2009, and suggest that schools would become broadly responsible for children's safety, enjoyment and happiness. ... [GDN]

This example of Rousseau's General Will [Wiki] in action comes along side the almost daily deluge of reports and 'research' urging people to change their lifestyles in myriad, and sometimes contradictory, ways.

Usually the sub-text is downward pressure on public spending.

This particular report exemplifies the thinking of Sir Isaiah Berlin, who, according to A.C. Grayling:

... thought positive freedom could tempt the state to prescribe and perhaps enforce ways of living and acting that it believed would be in the best interests of individuals, and thus what those individuals should desire (whether or not they in fact did so). This temptation has lately come to prove too great even for Western liberal democracies, which now routinely pass laws enforcing behaviour they think is in individuals' best interests to adopt ...

'Liberty' | A.C.Grayling | Walker 2007 | page 256   [Isaiah Berlin]

The 'war on terror' allows governments to introduce legislation ostensibly for use against terrorists - and would-be terrorists - and for such laws also to be used to target anyone, such as the parent from Poole in Dorset who was suspected of manipulating the schools admissions process.    [Extent of council spying revealed]

Worse, the boundaries between the 'war on terror' and the combatting of crime are being eroded as more and more local 'officials' become ex-officio members of the police and security services.    [GDN]    We're all suspects now

More Links:

Freedom v tyranny
Governmentality
Labour's public sector is a Soviet tractor factory
On the Mechanistic Modelling of Human Behaviour

Plato v Ivan Illich: Towards the DIY State

'Protint'
Reforming the Public Sector

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Global Labour Market, the War on Terror, and the General Will

To what Jeff Faux calls the 'global investor class', inward migration into the UK has played a highly useful role in depressing wages and bolstering profits, but, it has also created several problems for government, the first of which is the opposition to the impact of the global labour market, manifesting itself as hostility towards migrants.

Culture Secretary Margaret Hodge - MP for Barking - caused uproar within her own party when she articulated a widespread point of view by calling for housing allocation to be based on " ... length of residence, citizenship or national insurance contributions ..." [TLG] which prompted Alan Johnson to accuse her of offering "grist to the mill of the BNP". [TLG]

In order (a) to persuade the indigenous population to accept migrants, and (b) to root-out terrorists, New Labour has been forced to adopted policies that may cancel each other out.

Persuading 'the natives' to support immigration involves something called 'social cohesion'. This branch of the General Will involves producing the sort of report that was published by the Housing, Planning, Local Government and the Regions Committee of the House of Commons in May 2004.

Eighty pages of worthy platitudes exhort all and sundry to play their part in promoting the 'multicultural vision':

Local authorities need greater incentives to break down barriers between different communities.

The Audit Commission should put social cohesion on a par with performance in education and social services in its Comprehensive Performance Assessments.

Council officers should be rewarded for their efforts to promote social cohesion.

Political parties and the wider public need to share a multicultural vision for their towns.

Services should be based where they will serve all communities to avoid duplication and promote cohesion.    [HPLGRC]

Lord Goldsmith's report 'Citizenship: Our Common Bond' was another attempt to confront lack of identity.

The Queen is to be wheeled on stage - like some deus ex machina - to repair the social bonds which global-neoliberalism has trashed.   [MoJ]

The intended outcome - a sort of docile feudalism - would suit the global 'movers and shakers' very nicely.

Forelock tuggers don't ask questions, they stick within the 'cultural' boundaries of News International and the corporate media, and go shopping.

With the corporate plastic.    Manufacturing Consent

A 'return to primordial loyalties' [PL] is an equally likely outcome.

Global Labour Market
Steve Acheson

More Global Labour Market Links

Migrant builder took home £8.80 for a week
A casual injustice
Call for migrant housing rethink
Immigration is fine for the rich
Immigration is now making the rich richer and the poor poorer
'Labour costs are too high if I employ Brits'
New EU migrants may be eroding pay levels
The Forgotten Underclass
This land of opportunity must not close doors to migrant labour

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The War on Terror, 'Social Cohesion'
and the 'Pinochet Alternative'

The war on terror is all about 'primordial loyalties', in this case a fundamentalist religion which takes us back nearly a thousand years to the time of the Crusades.

It's Northern Ireland writ large. But it's also providing the necessary smokescreen for more government by the General Will, in furtherance of the Washington Consensus.

Lord Goldsmith's feudalistic variant of social cohesion might not deliver; in which case the apparatus of the war on terror - 42-day detention, and a range of gargantuan databases, such as are 'needed' for ID Cards, the NHS, ContactPoint, and CCTV - might have wider significance.

Ostensibly, the need for all this 'security' legislation is blamed on 7/7, but, as the IRA's mainland bombing campaign did not provoke a similar response, it's hard to go along with that line of argument.

Emulation of the US Homeland Security Department's policies might confirm the 7/7 theory, but, as many of the current databases seem unconnected with the 'war on terror', this argument also seems incomplete.

I tend to the view that this is actually the Pinochet Alternative to Lord Goldsmith's route to the acceptance of the neoliberal 'utopia'.

In sum, the implementation of the Washington Consensus actually requires a large active government intent on keeping the populace 'on side', masking the truth as far as possible, aided and abetted by the 'cultural' norms of News International, and Ray Bradbury's "Fahrenheit 451".  [451]

As in the Soviet Union, there is to be no withering away of the state, quite the reverse.

Those two utopian experiments - Marxism and Neoliberalism - end up as mirror images, in which a small powerful minority reaps all the rewards.

China is the permanent reminder of the reality of the 'successful' neoliberal state: a police state in which the tenets of the Washington Consensus come closest to full realisation.

War on Terror Links

Afghanistan: What are Britain's Aims?
A Violent and Aggressive Culture
BAE Systems
Iran
Chilcott Inquiry
Israel
'Liquid Modernity'
The New Liberal Imperialism
Torture
Tony Blair
War on Terror Log

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The Corporate State

It's not bankers Labour is watching, it's you

Here's how things stand. The follies of the big banks have caused the steepest plunge in output since the second world war. The economy is showing signs of stabilisation, owing largely to emergency cuts in interest rates and taxpayers' billions being used to prop up a ­financial system on the brink of collapse. Unemployment is rising, and it is rising most rapidly for the blameless, not the wretched bankers.

Even before the recession began, incomes for those at the bottom of the pile were below the level of three years ago. The longer Labour has been in power the slower incomes have grown. Inequality is higher than under Thatcher. Child poverty has increased in the past three years and the public finances are shot to pieces.

According to the prime minister, we are now living in a different world. The crisis of neo-liberalism has ushered in a new age in which there is a new and more important role for the state.

That is true, but only up to a point. The state is rather keener on controlling the people than the markets.

The evidence for this? Well, in the past month, the Treasury has announced that it is "not persuaded" that the most profound financial crisis of the past 100 years should result in reform along the lines of the Glass-­Steagall act of 1933. This is a sensible idea that would cut the banks down to size and create a legal distinction between retail and investment banks ...

Read Larry Elliott in full


Blogger 1caro's response to New Labour's craven attitude to bankers' bonuses highlights
a deeper concern: the revolving door between government and the private sector:

A safe haven for the super-rich

The best explanation for the FSA's limp response is the one trotted out time and again about the importance of financial services to the UK's broader economy. The banks and affiliated institutions – hedge funds and private equity – have long been disproportionate drivers of the nation's wealth. Ministers are terrified to rein them in. The language – even now, after the crash – is fawning. Read just a flavour of the report published in May by a group jointly chaired by Alistair Darling, the chancellor, and Sir Win Bischoff, the incoming chairman of Lloyds, to appreciate how so little has changed. The UK's financial services are a "centre of excellence working in partnership with the world", it gushes ...

What is needed is a candid conversation about wealth, its levels and its social and behavioural repercussions – but this is a debate that all main political parties are too frightened to have. At what point does one become excessively rich? The top rate of tax kicks in at £37,000 – already separating the 10% of haves from the 90% of have-nots. Perhaps it is £100,000, the figure the Liberal Democrats originally decreed to require a new top rate of tax (before they fought shy of the idea). Or is it £150,000, the point at which a 50% band finally begins to operate from next April?

Britain – the Britain of New Labour – has become the world leader in indulging the super-rich and the very rich. Forget for one moment issues of natural justice and social harmony: has this culture of greed produced better performance? Excessive wealth has not produced an incentive to improve the nation's lot.
1caro
12 Aug 09, 7:16pm

I'll be candid.

Ministers will not "draw the bigger conclusions" because they, MPs, their Spinmeisters & policy wonks are either in their pay in some way or shape, or they have promises of future careers with them. Not gonna kill the golden goose, are they?
Guardian 13 August 2009
BAE Systems
Corporate State Britain
Cashing in on the MoD gravy train
Patricia Hewitt joins BT
Lucrative job with Boots
Going Nuclear

Protecting the Corporate State

Guilty as not charged
Curse of the DNA register
'Intelligent policing'
Liberty
New powers proposed for security staff
N02ID
'Protint'
Safe in our cages
Snoop software makes surveillance a cinch -
'Snooper's charter'
The well of freedom is running dry
UK may store all phone calls and emails -
Unmanned spy planes to police Britain
We're all suspects now
Why I told Parliament: you've failed us on liberty

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Political Reform

Electoral Reform
Economic Democracy
Power Inquiry
Reforming Britain's Parliamentary Democracy

A New Politics

Curbing the whips
Direct democracy
Empower the committee system
Holding the executive to account
Restrict the use of secondary legislation


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Enemies of Democracy

1. Sociopaths

The ease with which sociopathic personalities can become leaders in democracies is illustrated by the Iraq War and it's aftermath.

It is not enough to hope that electoral reform, separation of powers, and greater accountability can prevent the election of the sort of cabal which surround President Bush.

Constitutions much less ideal than that of the USA - like the UK - make the election of sociopaths more likely.

Finally, the characteristics of the sociopath are such as to attract support, especially when they cultivate the perception that they will bring change where change is something desired by a majority of the electorate.

The ease with which sociopathic personalities rise to the top of corporations, where shareholder democracy is entirely notional, is illustrated by the cases of Enron, Equitable Life, MG Rover, and the Royal Bank of Scotland.

A study of Dominance-Hierarchy adds an important dimension to our understanding of how sociopaths obtain power.

2. Torturers and the Rule of Law

Just as Hitler's mythical Aryan 'community' needed an array of enemies in order to give it cohesion, sociopathic-neoliberalism creates an array of enemies blocking its road to the utopian world of the autonomous individual.

At the far end of this sociopathic dystopia are the torturers.

George Bush was refreshingly frank about it. He and his cabal saw no need to hide their beliefs: torture is good, torture works.   WP

Extraordinary rendition, Guantanamo Bay, Bagram; these are legitimate weapons in the fight against 'terror'.

The case of Binyam Mohamed confronts Western so-called democracies with the conundrum: a belief system notionally based on the Rule of Law confronted by a man who says MI5 were party to his torture by the CIA, plus a judicial system that - inconveniently - actually believes in the Rule of Law.   RCJ

What to do? Easy. Do what New Labour always does: dump on people at the bottom of the food chain.

It's the same for 'rogue' MI5 agents as it is for social workers: let the little guys take the flak.   Tel

Sociopathy Links

A 'Culture of manipulation and concealment'
Downfall of an $80bn firm
Ideology and ethics of Tony Blair
'I’d do it all again'
Jeffrey Skilling
Kenneth L. Lay
MG Rover
Rover
Sir Fred Goodwin
Tony Blair
Tony Blair
Tony Blair.Org
Tony Blair ... war with Iran
Where Equitable Life went wrong

Torture Links

Autonomous Individualism
Mechanistic Modelling
Social Darwinism
The Christian Right
Torture
War on Terror

5 Myths About Torture and Truth
Art, truth and politics
Blair's lies and linguistic manipulations
Call It the Abu Ghraib Memo
CIA Played Larger Role In Advising Pentagon
Laws Didn't Apply to Interrogators
Pentagon 'was warned over interrogation methods'
We Tortured and We'd Do It Again
White House Torture Advisers

Top


Towards the Good Society

Plato v Illich: Towards the DIY State

'A Moral Climate'
Amartya Sen & the Ethics of Substantial Freedom
Charles Leabeater: The DIY State
Education for the Good Society
Economic Democracy
John Seddon: Reforming the Regime
Land Tax, Fair Tax
'Mechanistic Modelling'
Oliver James: 'Affluenza'
Philip Blond: 'Red' Tory
Towards a New Measure of Well-being
Towards the Good Society: A Manifesto



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