Class

Göran Therborn published an article in the New Left Review 78 which is a hugely important reminder. Not least he highlights the ongoing meaning of the class question for social policy which had been – and still is – largely neglected within the British tradition of social policy and its foundation in social administration.

I think Göran’s contribution is a hugely interesting reading especially today while for another time the current crisis is not discussed with a proper reference to class issues. The debate on the crisis still remains caught within a framework of a supposed general interest, which had been and is always the interest of a minority. This is well known not only from Karl Marx’ work but also getting obvious from a thorough study of the two main works elaborated by Adam Smith (“Wealth of Nations” and “Moral Sentiments”).

I may add a brief comment, putting the perspective on social policy in perspective. Looking at economics, it’s original sin is linked to Marshall, stripping off the political from the economy: whereas all thinking in this area – be it by Xenophon, Ricardo, Smith or Marx to name but a few – had been hitherto seen as essentially political economy, we find now this fundamental shift of an alleged separation. NB: The mathematisation is not as such a problem although it is this that frightens frequently social scientists entering the debate on economic questions. Not least with this lapse we find the birth of social policy in its modern form: separated, entering a hopeless competition, searching its foundation in a claimed “pure reason of values” and prone to be swallowed by administration. The most extreme pattern surely developed in and from the Anglo-American tradition which founds social policy in social administration. Rather than referring to recent debates and examples (see for instance  my own writing: Person oriented services and social service providers in comparative and European perspective. Current debates on changes by liberalisation in a perspective of a theory of modernisation; New York: Nova, 2006, and more recent and relevant: The End of Social Services? Economisation and Managerialism; Bremen: Europaeischer Hochschulverlag, 2012)

I want to draw attention to the work of Karl Polanyi (surely beyond any suspicion of being Marxist): The Great Trsansformation. In his analysis of pauperism, Speenhamland legislation and its ‘antecedents and consequences’ (see part two: The Rise and Fall of the Market Economy; I. Satanic Mill) he clearly shows that this legislation had been genuinely part of the political economy of the time, not a matter of ‘distinct social policy’. And as such it had been established, taken back and re-established in new forms. A quote may show this:

The market pattern, on the other hand, being related to a peculiar motive of its own, the motive of truck or barter, is capable of creating a specific institution, namely, the market. Ultimately, that is why the control of the economic system by the market is of overwhelming consequence to the whole organization of society: it means no less than the running of society as an adjunct to the market. Instead of economy being embedded in social relations, social relations are embedded in the economic system. The vital importance of the economic factor to the existence of society precludes any other result. For once the economic system is organized in separate institutions, based on specific motives and conferring a special status, society must be shaped in such a manner as to allow that system to function according to its own laws.

It is interesting to read then the analysis of the development of the social policy legislation which had been mentioned: the class question always being on the agenda, the bourgeoisie always well aware of acting as class – in a way we may apply the notion brought forward by Marxism when looking at the proletariat, here applied to the ruling class: a class being characterised by the consciousness of being a class for itself rather than being only an objective entity without a consciousness of its existence (cf e.g. Marx,Karl: The Poverty of Philosophy; ; Chapter 2: The Metaphysics … . Strikes and Combinations of Workers). It is also interesting to see that in current debates the bourgeoisie is again (or we may better say: still) well aware of this close intricate link. On the other hand, we find on the (in a political sense) liberal and left spectrum a reluctance to enter the debate of class issues to see social policy as genuinely economic question and vice versa, in other words: to return to a genuine understanding of political economy. Pseudo-radical reference to a Ship of Fools or greed as phenomenon of general deterioration are only apt to distract from the essential question of class. – Sober analysis shows that the fools are actually sitting on board of a social science vessel that understands the social as add-on, aiming on strengthening its meaning rather instead of rooting its meaning in societal objectivity. In a proper understanding the social, then is the

outcome of the interaction between people (constituted as actors) and their constructed and natural environment. Its subject matter refers to people’s interrelated productive and reproductive relationships. In other words, the constitutive interdependency between processes of self-realisation and processes governing the formation of collective identities is a condition for the social and its progress or decline.

(van der Maesen, Laurent J.G./Walker, Alan, 2012: Social Quality and Sustainability; in: van der Maesen, Laurent J.G./Walker, Alan [Eds.]: Social quality: From Theory to Indicators; Basingstoke: Macmillan: 250-274, here: 260)

So, in this light a left understanding of social policy has to make a “step back”, returning to the roots if it doesn’t want to allow to be continuously pushed aside by the quest for economic miracles of economic growth of and within marketised societies. To quote another time Polanyi:

The ecomomic system is, in effect, a mere function of social organization.

And social organisaiton and social policy, in one way or another, is a mere expression of class relationships. As such it is a matter of capitalist formations, defined not only by economic interests but by economic power: the control of the means of production and the control of their development and “use”.

China and Asia – A New Capitalist Centre or A New Capitalism?

The following are notes only, giving some kind of direction to a presentation in La Habana, Cuba, not the presentation as such.

Western societies under serious threat

The future will not be ‘capitalism as we know it’ – and it may be added that we probably even fail when utilising the traditional ‘concepts’ and categories as neo-liberalism, nation state and the like as analytical tools;

The future faces the challenges of a new and fundamental threat from the side of environmental hazards

With this we have to challenge and overcome following the roots of today’s capitalism, namely the individualism as a major source of mal-development.

NB: In this light socialism has to think also about what today’s challenges are. Industrialisation is now a matter that is intrinsically interwoven with processes of globalisation and going much beyond the traditional patterns. The understanding of what is ‘industry’ changed – they are very much beyond the development of the means of production. It is also about the means of consumption. And it is also about the changed meaning of production: services, transactions etc. play an increasing and seemingly independent role. We can see this from the meaning of the financial sector in the capitalist world and globally. And we can see this by the fact that already in 1994, Douglass C. North, with reference to John J. Wallis and North from 1986 makes us known of

an empirical study that 45 percent of U.S. GNP was devoted to the transaction sector in 1970

(North, Douglass C., 1994: Economic Performance Through Time; in: The American Economic Review. Vol 84.3: 359-368; here: 360)

Second, globalisation is not so much and not primarily about the power of multinationals. Rather, it is about a structure of complex interdependencies. This means not least that any strategy of economic success has to focus increasingly on issues of quality. And as such it has to deal with complex issues of a highly integrated systems of “work” and “life”.

It is about what is produced and in which way it is produced and finally about the way production and reproduction is immediately integrated in the overall life span.

China as part of Asia as new Centre?

All this is traditionally also a challenge for capitalist societies and all this found already answers in traditional patterns of globalisation, namely the global division of labour. We find fundamentally the three “sites”:

  • The socialist countries
  • The countries of the capitalist centre
  • The countries of the capitalist periphery

Looking at China and other Asian countries the situation is a bit tricky: independent of how we assess “socialism in China”, we can say that all the countries, including the PRC had been peripheral in two ways: peripheral to the capitalist formation in terms of the character of their formation, and peripheral in terms of the development of their industrial stage.

Today, the situation is again different in the relevant countries; but globally they can nevertheless be seen as one group in several respects. Their industrialisation is very much based on traditional systems of social integration; and this means that this industrialisation is also very much linked to the traditional concept of industrialisation: it is about the central role of mass production especially of means of production; however, it is at the same time about a promoting role that this production plays: we can see this very much as matter of ancillary industries. Taken together, it is as matter of a certain social structuration, or a specific way of “social integrity”: it is best accounted for by the reference to “social harmony”. Rather than being based on individualism it is the idea of a specific kind of collectivity. The traditional principles still have some meaning.

The principal tension is between only two poles – the good and the evil – and the ideal is actually not something that is principally outside of this tension but it is the solution of the tension. It is the dialectical Aufhebung in the form supersession and sublation. 石頭希遷 (Ts’an-t’ung-ch’i) expresses this pronouncedly in the Zen Buddhist tradition in the poem Harmony of Difference and Sameness, writing for instance:

In the light there is darkness,
but don’t take it as darkness;
In the dark there is light,
but don’t see it as light.
Light and dark oppose one another
like the front and back foot in walking.
Each of the myriad things has its merit,
expressed according to function and place.

(Ts’an-t’ung-ch’i: Harmony of Difference and Sameness; http://www.sacred-texts.com/bud/zen/sandokai.htm – 15/07/2009 8:13 p.m.)

It is not least a foundation for the role-definitions as we find them in the words of Mencius:

[l]ove between father and son, duty between ruler and subject,
distinction between husband and wife, precedence of the old over
the young, and faith between friends. Fang Hsü said.!
Encourage them in their toil,
Put them on the right path,
Aid them and help them,
Make them happy in their station,
And by bountiful acts further relieve them of hardship.

(Mencius, 300 BC [appr,]: 60 – Mencius. Translated with an Introduction and Notes by D.C. Lau: London et altera: 2003)

One point of special interest is the fact that we find even up to now a strong orientation of Asian cultures along these lines – be it in Buddhism, Hinduism, Daoism or other strands of development. This is important to note as it opens the way towards another interpretation of the differences between the Eastern and the Western understanding of the welfare systems. Whereas in Western societies there is barely any doubt about the welfare state serving as point of reference, this is different in Asian societies where the concept of harmonious welfare society is central.

According to Confucius, social harmony, that is a state of cooperation and the absence of social conflict, can be theoretically achieved primarily by two methods. First, it is the self-cultivation of individual moral character; the second is that both leaders and subject behave with propriety and conduct their relationships in conformity with the social rules without coercion (King & Bond, 1985, pp.30-32; Sung & Hahn, 1985, pp.22-23). In other words, the traditional state of social harmony for good governance is the reliance on people, both leader and subject, in the self-realisation of the best of their moral character and in the exercise of propriety in role performance, even in a hierarchical social and economic order. In practice, as reminded by a Western Chinese expert on the current official discourse of social harmony, that in Imperial China, the “self-serving dynastic rulers adopted social harmony as their official ideologie d´etat, using it to impose a paternalistic, ritualistic ethos of political consensus and conformity upon a voiceless, powerless peasantry” (Bauum, 2005).

(Wong, Chack-Kie: Comparing Social Quality and Social Harmony by a Governance Perspective; Paper presented during the International Conference ‘Social Quality in Asia and Europe: Searching for the Ways to Promote Social Cohesion and Social Empowerment’. University of Nanjing, 24-26 October 2008: 3)

This is hugely important as it

includes a rectification of the earlier development bias towards economic development by the global concept of ‘Five Co-ordinations’ – the coordination of rural and urban development, the coordination of regional development, the coordination of economic development and social development, the coordination of human and nature, and the coordination of internal national development and the need of open door to outside. In other words, the earlier ‘growth-first’ model by the slogan of ‘Get-rich-first’ set by the late Patriarch, Deng Xiaoping, is replaced by the present slogan of ‘Both-rich’ (Central Committee, CPC, 2005).

(ibid.: 7)

Still, as far as we are concerned with an inherent tension of the Asian countries, we have to see the conflictual line: as much as the concept of social harmony is ideologically maintained and modernised, as important is to acknowledge that we face a two-layered structure: the traditional mode of production clashes with the patterns that re typical for the NICs, the Newly Industrialising Countries. It is important to emphasise that we are talking about industrialising rather than industrialised countries. This implies that we are facing a two layered shift of the development.

On the one hand Asia is emerging as a new centre of global capitalism. Sure, it is not about a complete shift – although there are good reasons to see this development as equally serious as the shifts that characterise earlier stages of development – Giovanni Arrighi developed this already in detail: the victory of the Dutch mercantile system over the Northern-Italian city states at the end of the Renaissance; the victory of the new heavy-industrialising England over the mercantile system; later the mass-productive systems of the “New World” of the American Dream, dominating the new global order.

With reference to Bob Jessop (Jessop, Bob, 2000: From the KWNS to the SWPR; in: Gail Lewis/Sharon Gewirtz/John Clarke (eds.): Rethinking Social Policy; London et al.: Sage publications; 2000: 171-184) we can look at this in a different way, at least with view on the “developed national capitalisms”. He provided from a different perspective the following two systematic outlines, each reflecting a different developmental stage of capitalism.

1 Keynesian

=

Full employmentClosed economyDemand management

Infrastructure

2 Welfare

=

Generalized norms of mass consumptionWelfare rights
3 National

=

Relative primacy of national scale
4 State

=

Market and state from mixed economyState corrects ‘market failures’

Keynesian Welfare National State

(from ibid.: 173)

For the latter stage he outlines as follows:

1 Schumpeterian

=

Innovation and competitivenessOpen economySupply-side policies
2 Workfare

=

Subordinates social to economic policyPuts downward pressure on ‘social wage’Attacks welfare rights
3 Post-national

=

Relativization of scale
4 Regime

=

Increased role of governance mechanisms to correct market and state failures

Schumpeterian Workfare Post-National Regime

(from ibid: 175)

There is a good bit of analysis in Jessop’s work which I want to take up and push further, looking at the process of socialisation and its conditions. In other words, it is about exploring the opportunities and needs for a new socio-economic system, thus exploring the potentials of new steps of socialisation.

Taking up Jessop’s references I propose a new perspective as Gates-Jobsian Patchwork Global Spacetime.

1 Gates-Jobsian = Defining Access to “Employment” but also Defining EmploymentOpen EconomyBlurring Demand
2 Patchwork = Individualised Mass ConsumptionIndividual Rights— Opening frm Law to Rights
3 Global = New Belongings and Identities
4 Spacetimes = “Arbitrary” Social Spaces for Individual Self-Realisation

Gates-Jobsian Patchwork Global Spacetime.

On another occasion I stated on the first element that there is some reason for thinking about a Gates-Jobsian shift emerging from the undefined polyphonic post-Fordism? The new computer-technology and with this the era of information-technology as it is frequently attributed to Gates’ Microsoft and Jobs’ Apple emporium has much deeper implications as we usually see: the digitalisation of everything, the increased accessibility of manything and the potential of anything are visible, lurk around every corner. But we do not see immediately the depletion of substance in algebraic formulae, the unattainability of understanding and the reality of the potential as potentiality of factuality, immersing as something that could be but that is not. A new kind of absolute idea – it is not irrationality but a new rationality and perhaps even a new categorical imperative.

This suggests that we actually reached a developmental stage of the productive forces that are now at a stage which are fundamentally reaching into new patterns of life.

On the other hand it is about the power relations within the Asian region. Japan is highly developed in the traditional mass production industries. However, the other countries of the region are more open – not least as they start from a relatively low level of development. The latter can be seen by the fact that their share in international trade decreased enormously for a long time, however massively catching up since recently. Thus we witness the possible emergence of a new centre-periphery structure: China, with its regional satellites as new centre of the global economy; leaving in the long, or even only medium run Europe and the USNA behind. The recent global crisis shows already that global is somewhat reduced: it is primarily about the “global west”, though surely pulling the old satellites in consequence down.

In China the current main challenge is the development of a reasonable own social force. I mean with this, that export orientation can only be a temporary stronghold – allowing some form of economic sustainability only if it manages to develop a sound indigenous economic performance.

Doomed to Fail? The need for a sustainability orientation

However, personally I see the following major difficulties in this respect: Maintaining the concept of a global economy principally based on division of labour fails to see the true challenge of globalisation. It is about emphasising ‘joint existence’ and its sustainability rather than competitive advantage. This accentuates the need to search for a new concept of development that is indeed geared to an understanding of the “we”. For this we may have to learn from each other – and talking about “we” I mean at this moment the work I am involved in as senior advisor to the European Foundation of Social Quality. There is a string collaboration with colleagues in Asian countries. The challenge is to develop an understanding of the social,

conceived as the result of the dialectic (constitutive dependency/c.i.) between processes of self-realization and the formation of collective identities.

(Gaspers, Des et altera, 2013: Connecting ‘Human’ and ‘Social’ Discourses …: 24)

From my personal point of view we have to drive this further. Taking this definition as point of departure we have to look for a way to thoroughly found this definition in its economic meaning, linking it to matters of the development of the productive forces. And we have to found it more serious in terms of a “we” that is not based in traditional values it in real peoples movements.

In particular the latter is, I hope, a point for developing a sound cooperation between colleagues from Cuba and colleagues from other part of the world.

Some Questions: Challenges we Face

It is striking hat we are in many cases dealing with paradigms, concepts and terms that remain unquestioned. This is for instance about the ‘natural character of barter’ (for instance problematised by Karl Poalnyi), the validity of the nation state (even in its modern form) as point of reference, competition as human condition and rational choice as guiding decision making. Issues as reciprocity, altruism, solidarity frequently show up, however remain outside of consideration as constitutive factors. The actual widespread and fundamental meaning of cooperation and the social as

as the result of the dialectic (constitutive dependency/c.i.) between processes of self-realization and the formation of collective identities.

(Gaspers, Des et altera, 2013: Connecting ‘Human’ and ‘Social’ Discourses …: 24)

remain marginalised although they have a prevailing meaning.

It is surely important to discuss the meaning of the accumulation by dispossession. However, we have to look also at developments of accumulation by repossession. Fact is that capitalism inherently destroys its own foundation, competition leading to a process of a ‘clandestine socialisation’.

Development or Change – Today’s Challenges for an Emerging Global Society

The following are notes made in preparation of a presentation in La Habana, Republic of Cuba in December 2012.

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The background of this presentation is actually far away – a presentation given by my friend and colleague Laurent J.G. van der Maesen at the 2012 Life & Development Forum in Hangzhou. From there some interest had been established to colleagues here in Cuba. Last year’s forum has to be characterised as

  • global in its very character
  • however, emerging from China and actually even more from the work in Hangzhou and thus marking a specific shift in global development – a shift that can briefly be characterised by emphasising the fact of glocalisation: the recognition of the importance of localities in the part of the global processes. This is not simply a matter of the effects of globalisation on localities but also a matter of recognising the actor perspective of these entities.

Looking at the general agenda of global developments, there are surely many contingencies. However, one may point on at least the following moments as characterising.

  • the future will not be ‘capitalism as we know it’ – and it may be added that we probably even fail when utilising the traditional ‘concepts’ and categories as neo-liberalism, nation state and the like as analytical tools;
  • the future faces the challenges of a new and fundamental threat from the side of environmental hazards
  • with this we have to challenge and overcome following the roots of today’s capitalism, namely the individualism as a major source of mal-development.

NB: In this light socialism had been to some extent caught in the same danger, namely as far as applied the basic principle of capitalist development for an extended time: the focus on the development of the productive forces (with reference to Marx: the development of department I) had been initially surely important; however, it would have been necessary to determine a point from where development is not about development of productive forces, thus implicitly the orientation on quantitative growth of consumption but about development of the quality of goods produced in department II, i.e. the development of means of consumption (in the widest sense) as means of developing social quality.

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The thesis is that in order to fully understand today’s challenges we have to look at the roots of capitalism in a more complex way – reaching beyond the economic and subsequent political perspective. In other words it is about fundamentally allowing the return of political economy in its true sense as investigation of the

organic unity of economy and polity

(Perry Andersen).

Such an approach stands against the development of a theory of political economy in a traditional sense of a politico-moral backing of economic processes as we know it for instance from Adam Smith.

Arte. Es la naturaleza creada por el hombre

(José Martí)

A major and fundamental flaws of capitalist development can be seen on the following moments:

  • the emergence of the bourgeois individual
  • based on the – apparent – loss of ‘ontological relationality’ (Slife)
  • leading to the redefinition of social activities as contractual relationships
  • undermining space for social action, while – though only for some – increasing this space on the individual level.

However, seeing this pattern as societal phenomenon we may summarise it as – for capitalist societies secular – process which Niklas Luhmann famously expressed by saying

All could be different but I nearly cannot change anything.

Paradoxically this goes hand in hand with the fact that the individual is made responsible for everything, being seen as rational actor with unlimited capacities to shape his/her life.

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I do not want to discuss in detail any question of human rights and relevant questions of legal philosophy (see Herrmann: God, Rights, Law and a Good Society; Bremen/Oxford: EHV Academicpress, 2012; Rights – Developing Ownership by Linking Control over Space and Time; Bremen/Oxford: EHV Academicpress, 2012). However, one point is of crucial importance, namely the fact that the Universal Declaration argues solely on the basis of the understanding of individualism in the form in which it emerged from the Western enlightenment. Seen in this perspective it is no surprise that it actually emphasises the ‘normality of the capitalist mode of production’ – with the legimitation of employment as actual basis of human existence, thus also providing a ground for defining ‘citizenship’. And furthermore it is from here that human rights are defined as ‘moral obligation’ (see Herrmann: Presentation Narrowing the Gap Between the World’s Richest and Poorest. Contribution for the Deutsche Welle GLOBAL MEDIA FORUM 2011).

For further exploration we may briefly look at a briefing paper Human Rights and Poverty: Is Poverty a Violation of Human Rights? Edited by the Centre of Economic and Social Rights. It

suggest[s] that violations of human rights can be cause, consequence or constitutive element of poverty.

This is surely important – and it has to be acknowledged that the document mentions as one of the consequences also

the destruction or denial of access to productive resources [which] can clearly cause poverty.

However, the overall formulation of the three points suggests that rights are a matter of provision rather than a matter of constituting and maintaining ‘active citizenship’. Talking then of the three dimensions of

respect, protect and fulfil

is more about a top-down approach than allowing the development of a bottom-up-approach towards rights. And indeed, this supports the thesis that HR are fundamentally an add-on, established to secure a capitalist world order. As any law, human rights law is also just a means – in the words of Iredell Jenkins:

Positive law assumes an ordered social context that exhibits certain deficiencies: it envisages more desirable – an ideal – ordering of the context; it prescribes the steps to be taken in order to move the actual towards the ideal; and it orders that these measures be instituted. That is, positive law is at once expository, normative prescriptive, advisory, and imperative. But it is positive law as a means to an end …

(Jenkins, Iredell: Social Order and the Limits of Law. A Theoretical Essay; Princeton: Princeton University Press 1980: ibid. 75)

Based on such an approach we face the following fundamental limitations in the relevant HR-debates:

  • they are very much based on supposedly eternal and socio-independent moral standards (it would actually not be far from here to speak of a-social standards)
  • the ‘we’, the collective identity, is reduced on aggregates of individuals, even defining ‘collective actors’ as the state, organisations, corporations etc. as ‘legal personalities’
  • finally not allowing to understand global structures and processes as other than the conglomeration of national actors, thus remaining in the limits of international relationships, not seeing the global order as genuine identity in its own right.[1]

Though it is at this stage only a short point, I think it is important to point out that many of contemporary debates focus too much on ‘technical’ and ‘individual solutions’, particularistic in character, to current challenges. These remain very much in the framework of individualised strategies. Though surely an important contribution to overall debates, we can point on the important limitation of the work by Mahbub ul Haq and Amartya Sen. In short their orientation is about development of humans and not about human development, let alone about development of human relationality. This means not least that an important perspective remains faded out, namely the perspective of socio-human existence as part of a complex socio-natural setting. Thus we may also say that the major and fundamental problem of the dominant conceptualisation of human rights remains founded in the dissolution of the individual from its genuine social context. With this we find the reduction of the social as matter of relationships of individuals.

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Obviously, this falls short in providing a fundamentally valid perspective on today’s structures. Early capitalist societies had been moving to a systematic de-socialisation of personalities and the undermining of genuine social processes. This could be seen in the difficulties Adam Smith faced in maintaining moral standards within the taken economic perspective – finally resulting in the tendency to separate the question of wealth of a nation from moral sentiments. And equally we can see these difficulties when it comes to German philosophy as for instance expressed in the tension of different reasons in the works by Immanuel Kant.

The Social Quality Approach redresses this flaw by focussing on the social, understood as noun. It

may be conceived as the result of the dialectic (constitutive dependency/c.i.) between processes of self-realization and the formation of collective identities.

(Gaspers, Des et altera, 2013: Connecting ‘Human’ and ‘Social’ Discourses …: 24)

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For the further discussion I want to refer to more recent debates, not least stimulated by developments in Latin-American countries, in particular Bolivia, Ecuador and in the meantime Venezuela. The main point of reference is the constitutional principle of buen vivir or vivir biene. Important is that the standard of defining rights and for the definition of the social is not the individual and his/her well-being. Nor is it about the human existence as such. Instead,

  • understanding the individual as principally relational
  • considering the human existence as part of the overall natural existence
  • emphasising the relation between social and nature as fundamentally constitutive
  • and finally seeing social existence not least as matter of ability to accept collective responsibilities.

The emphasis is on ‘joint existence’ and its sustainability.

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With this in mind, the following issues are of utmost importance – here posed as questions that have to be elaborated and on which the answer has to be searched.

  • the what of production has to be asked anew. Point of departure is Engels’ formulation of the ‘determining factor in history’ according to the ‘materialistic conception’ (see Engels, Frederick, 1884: Origins of the Family, Private Property, and the State. Preface to the First Edition). Whereas in the first instance this had been very much about the development of the means of production, and in particular the development of the productive forces, we are now facing a different situation. In one respect we have to reconsider the meaning of the production of the second department, namely the means of consumption. Though we are apparently living in times of overconsumption, this is not completely true: in actual fact we can see overconsumption in parts of world society going hand in hand with the lack even of the basic means of sustenance in other parts (see in this context for instance Milanovic, Branko, 2011: Global Inequality. From Class to Location, from Proletarians to Migrants; The World Bank Development Research Group. Poverty and Inequality Team; September 201; Working Paper 5820). Another important factor can be seen in the fact that a large part of ‘production’ is actually concerned with processes of transaction. Already in 1994, Douglass C. North, with reference to John J. Wallis and North from 1986 makes us known of

an empirical study that 45 percent of U.S. GNP was devoted to the transaction sector in 1970

(North, Douglass C., 1994: Economic Performance Through Time; in: The American Economic Review. Vol 84.3: 359-368; here: 360)

These are issues that need to be investigated more thoroughly not least in a global perspective.

  • This leads immediately to the second point, namely the question of the relationship between the different departments, in particular department I (production of the means of production) and department II (production of means of consumption); and it means also to investigate the existence of a department III (production of ‘financial services’) and a department IV (production of services)
  • Both, production in department III and IV point into the direction of a new kind of commons. If treated circumspectly we can see development in a new perspective. The development of department I, reaching a certain qualitative point, serves as point of departure for the development of department II as going beyond satisfying immediate needs, allowing qualitative developments. We find with this development a potential release of additional forces, but also of additional ‘needs’ of a higher order: the mentioned processes of transaction and also the growth of services are pointing into the direction of huge potentials of socialisation – and saying potentials means that the technological conditions, under private ownership and control, are in actual fact developing in a counter-socialising way. However, taking the potentials as point of reference we may speak of a development from the production of commons towards the production within commons, or using a different wording: the development of common production.

NB: Stating this does not mean that the development actually follows this path. In actual fact we find right now an extremely problematic development in a global perspective. It is still very much about continuing the old pattern of industrialisation on the one hand – now shifting anew to the NICs and also to new centres (as not least Japan and China); and this going hand in hand with a qualitative orientation of consumer goods in the ‘traditional centres’ (as in especially US and [in particular the old] EU). However, as much as this development is not about a simple ‘shift’ by way of replacement, it is obvious that this development cannot be socially sustainable (let alone sustainable in terms of a simple environmental understanding).

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Let me briefly return to the question of rights in general and in particular human rights. Commonly the Western understanding of rights – this had been outlined earlier – is structurally based n individualism. It may even be said that the very concept of rights depends in its ‘modern’ form on the existence of the bourgeois-citoyen individual. The citoyen – addressed as such during the revolutionary times of – had been understood as individual, socialised at most by reference to the categorical imperative as laid down in 1788 in Immanuel Kant’s Critique of the Practical Reason:

Act so that the maxim of thy will can always at the same time hold good as a principle of universal legislation.

This is based on the assumption of the independent, self-referential though rational individual actor. The understanding of rights developing against such a background can only be protectionist in its very character: it is the protection of individuals against possible infringements by others or the protection of individuals against violation by the state (to some extent an exception in this context is the notion put forward by T. Hobbes). To the extent to which we see the development of ‘modern commons’ – in various ways reflected since a long time, for instance by the common goods, general interest, volonté génerale or volonté du tout …) – and to the extent to which collective actors are emerging as truly relevant (see e.g. Meyer, John W., 2010: World Society, Institutional Theories, and the Actor; in: Annual Review of Sociology, 2010: 36: 1-20), we are asked to develop a new understanding of rights. This may be characterised in short by pointing on two moments:

  • They have to be understood as truly social rights. I come back to the definition given earlier, proposing that the social

may be conceived as the result of the dialectic (constitutive dependency/c.i.) between processes of self-realization and the formation of collective identities.

(Gaspers, Des et altera, 2013: Connecting ‘Human’ and ‘Social’ Discourses …: 24)

  • It has to be added that it is not only about the formation but also about the maintenance of the social. Rights are now emerging not as protection of individuals against individuals but as protection of collectivities against individuals (for a very good example in this context Burghardt, Peter, 18.6.2008: Ecuador. Im Dshungel der schwarzen Pest; in: Sueddeutsche.de. Wissen – it has to be mentioned that this is not [only] about corporations but also about interests of individual states in their ‘modern’ performance as legal personalities).
  • Importantly, these rights are not emerging from any moral and normative standards but their definition has to reflect the objective development of the productive forces as it had been outlined before when reference had been made to the development of the different departments of production and their relationship to each other.

[1]            This is even more needed as long as we do not have a global actor in the traditional sense (as e.g. a ‘global state’)

Kondratieff – and a new gate for achieving Social Quality?

Contributing to the debate on “Cyclical Patterns in Global Processes, Kondratieff Cycles and the Concepts of Long-Term Development of Russia and the World”

I’m not entirely sure if and to which extent I can contribute something really new by approaching the topic from different perspectives: economics, political science and sociology. The ambiguity of the Kondratieff approach, the approximate character of the “waves” or “cycles” had been frequently mentioned throughout the years – and actually had been also the point behind contesting his concept from the “official” side during the Soviet times.

My fundamental concern is the following:

  1. it is the aim to present a wider understanding of what the foundation of the cyclical movement is – thus it is about the discussion of some theoretical aspects;
  2. this perspective may help to understand where we are actually today, and not least: what possible political conclusions can be presented.

I. THEORETICAL CONSIDERATIONS – A wider framework for analysing waves

I want to start with a broad reference to the French theory of regulation, and in particular a definition of the accumulation regime given by Andre Lipietz. He strongly emphasis in the fact of a – temporary – correspondence of the actual accumulation as it is part of the production and the pattern of consumption. Looking at consumption, he refers especially to the “unproductive” dimension, i.e. the part of consumption that is part of reproduction of life. Nevertheless, this consumption can only be understood as part of the overall reproductive process of the economy (Lipietz, Alain, 1986: New Tendencies in the International Division of Labor: Regimes of Accumulation and Modes of Regulation; in: Scott/Allen J./Storper, Michael [eds.]: Production, Work, Territory. The Geographical Anatomy of Industrial Capitalism; Boston/London/Sidney: Allen&Unwin: 16-40). In this understanding it is closely linked to Engels’ emphasis of the understanding of the materialist conception of history with the focus on the production of everyday’s life (see Engels, Frederick, 1880: Socialism Utopian and Scientific; in: Karl Marx Frederick Engels. Collected Works Volume 24. Marx and Engels 1874-1883; London: Lawrence&Wishart, 1989: 281-325; in particular 306). In a narrower understanding, this is of course not least a matter of the location of purchasing power within the society’s economy.

From here it is only a small step to fully understand the meaning of civilisational character of the entire question of the development – this had been mentioned in the presentation by Yuri V. Yakovets. I want to refer here to Paul Boccara, who stated in his recent book:

C’est pourquoi, en liaison avec l’ « économie » c’est-à-dire les règles (nomos en grec) de la transformation  de la nature extérieure (oekos en grec) ou si l’on veut du système écologique, on peut parler d’ « anthroponomie », pour les règles du système de transformation de la nature humaine (anthropos en grec)

(Boccara, Paul, 2012 : Le Capital de Marx, son apport, son dépassement au-delà de l’économie ; Paris : Le Temps des Cerises : 19)

In this light, technological development is always very much also a matter of specifically “directing” demand – in a side remark I may refer to Alfred Kleinknecht who reminds us that

[t]he expansionary effects on demand of such investments can be described in analogy with the standard Keynesian income multiplier model. The seize of the expansionary multiplier effects would, of course, depend on how revolutionary were underlying innovations, the rate of subsequent (major and/or minor) innovations, and their degree of diffusion.

(Kleinknecht, Alfred: Long-Wave Research: New Results, New Departures – An Introduction; in: Kleinknecht, Alfred/Mandel, Ernest/Wallerstein, Immanuel (eds.): New Findings in Long-Wave Research; New York: St. Martin Press, 1992; 1-12; here: 9)

Before looking a bit more in detailed into this matter, I want to remind ourselves of the two departments – implicitly mentioned already in the quote from Engels’ text. These are about the means of production in department I and the consumables in department II.

I want to suggest in particular in the light of the more or less recent developments – though not referring to the immediate past – to extend this perspective by adding two departments. A department III had been actually mentioned already a long time ago – when finance capitalism entered capitalism at an earlier stage. It had been Rosa Luxemburg who outlined in her book on ‘The accumulation of capital’ the financial sector as department III (see Luxemburg, R., 1913. The Accumulation of Capital. [Trans. A. Schwarzschild, Introduction by J. Robinson, 1951]; London: Routledge and Kegan Paul: passim). In addition, I want to propose a department IV as an umbrella for producing invisible assets as for instance management, knowledge, design, knowledge management etc. . It may well be worthwhile to consider here as well part of public administration with an exponential growth; but also “time” and “space” which can be increasingly seen at least in some way “man-made” with its virtual dimension.

All these invisible assets a surely not new – they, as well as finance capital played a major role earlier. For instance we discussed in the 1960s/70s the role of science as immediate productive force – at least this can be seen as an indicator for the importance we gave it. The new character can probably be grasped by saying that all these factors are now distinct, play a very specific role in the overall shape of the economy.

Of course, we all remember the crucial distinction Marx presented with regard to the overall process, analysing production, consumption, distribution and exchange all being integral part of the process.

My proposal here is to link this with the extend view on departments,

I – means of production

II – consumables

III – “financial services”

IV – “invisible assets”

II WHERE EACTLY ARE WE STANDING NOW?

Given this framework, we can now move to the question of how to understand the current situation.

A crucial point is that the capitalist formation had been up to hitherto characterised by

  • specific forms of marketisation – according to Karl Polanyi markets a not per se a matter of establishing market societies
  • the emergence of the market principle as dominating production – Polanyi points this out, stating:

A market economy is an economic system controlled, regulated, and directed by markets alone; order in the production and distribution of goods is entrusted to this self-regulating mechanism. An economy of this kind derives from the expectation that human beings behave in such a way as to achieve maximum money gains. It assumes markets in which the supply of goods (including services) available at a definite price will equal the demand at that price. It assumes the presence of money, which functions as purchasing power in the hands of its owners. Production will then be controlled by prices, for the profits of those who direct production will depend upon them; the distribution of the goods also will depend upon prices, for prices form incomes, and it is with the help of these incomes that the goods produced are distributed amongst the members of society. Under these assumptions order in the production and distribution of goods is ensured by prices alone.

(Polanyi, Karl: The Great Transformation. The Political and Economic Origins of our Times; Boston, MA: Beacon Press, 2001: 71)

Continuing, he summarises a little later – with reference to W. Cunningham (Economic Change; Cambridge Modern History, Vol . I)

The extreme artificiality of market economy is rooted in the fact that the process of production itself is here organized in the form of buying and selling.

(77)

  • the shift to the distinctly dominant market of consumables – this finally representing the decisive step towards the market society
  • finally the move towards the dominance of invisible assets – including the increased meaning of so-called financial services.

This is in some way a different formulation of the undercurrents of Kondratieff’s waves, taking it from a presentation by Carlotta Perez:

1771 – The ‘Industrial Revolution’ (machines, factories and canals)

1829 – Age of Steam, Coal, Iron and Railways

1875 – Age of Steel and Heavy Engineering (electrical, chemical, civil, naval)

1908 – Age of the Automobile, Oil, Petrochemicals and Mass Production

1971 – Age of Information Technology and Telecommunications

20?? – Age of Biotech, Nanotech, Bioelectronics and New Materials?

(Perez, Carlotta, 2011: The direction of innovation after the financial collapse. ICT for green growth and global development; 9TH Triple Helix Conference Stanford, July 2011: Slide 3)

This always went hand in hand with a specific international division of labour and division of consumption, including a difference between simple and extended reproduction of people’s daily life.

This evokes the proposal of a new phase we are facing now: whereas we find in the earlier development a move towards socialisation of production and consumption and with this socialisation of securitisation, we find currently a move “back forward”:

  • it is a matter of technological development
  • it is a matter of shifting productive orders globally and internationally
  • and it is also shifting patterns of consumption.

In some respect we may put one thesis forward: we find now a real quantum leap of globalisation: although the commonly known divisions between centre and periphery are in many respects maintained, we find nevertheless a more rigid “unification” of the entire capitalist structure in “one global capitalist system”. Of course, in detail a differentiated analysis and debate has to be undertaken – not least in the light of André Gunder Frank’s and Barry Gills’ thesis of the 5,000 years development on the one side (see on this discussion Frank, André Gunder/Gills, Barry K., 1993: (Eds.): The World System. Five Hundred Years or Five Thousand; London/New York: Routledge: 1996) and on the other side of Giovanni Arrighi’s suggestion that we are witnessing a “shift to the east”. A brief and tentative remark on the latter may be made by way of suggesting a historical perspective: it seems to be obvious that all previous shifts – from the Genoese centre and the Italian city states to the Netherlands to England and later to the USA had always been accompanied by a profound increase of international integration. Speaking of a shift then suggests a one-sided interpretation, emphasising – by highlighting the emergence of a new centre – one side, fading out the fact of an increased global integration. The early Italian city states had been still somewhat autonomous, self-sustaining in their more or less small realm; it would be foolish already for the emerging Dutch empire if we would want to maintain such thesis.

Another point has to be made: all these shifts – and we should go much beyond the periodisation commonly suggested in long-wave theories – are in particular concerned with a shift in basic patterns. We can see this in particular as matter of following secular trends:

  • socialisation of production increases tremendously
  • and so does the private character of appropriation
  • we can formulate this in another way, saying that the socialisation of corporate, i.e. private costs
  • is the reverse of the individualisation of costs of private households, i.e. the costs of living.

This merges into the production of different standards which goes hand in hand with a shortening of circles consumption, the latter, as excessive consumption of a minority, however only serving as crutch for maintaining accumulation. This is true although the number of rich people is somewhat increasing.

III. CHALLENGES

One of the major points of current economic developments is a the emergence of an economy of invisibility. Adam Smith’s invisible hand is now further hidden, transposed into a phantom of invisible assets. Being privately appropriated, they are surely still very much a phantom. And in their phantomised form, they can also be seen as threat as they can temporarily be used as means of accumulation that is more or less completely separated from any real economic basis: the well known bubble-economies, especially manifested by the synchronisation of accumulation and consumption cycles and the synchronisation of their failure.

But the bubble economies are themselves hiding another aspect: the increase of relative poverty. We may assume with some justification a changing pattern of the distribution of wealth/poverty. Tony Atkinson tentatively presented this, by pointing out that the juxtaposition of rich and poor countries needs today some qualification: inequality and the tension between affluence and poverty is now less a matter between countries, in particular between the rich north and the poor south. Rather, we are today more and more confronted with a global minority of affluent people and vice versa a global majority of people with relatively little resources. One indicator can be seen in the fact of a relevant number of the richest people and enterprises in the countries of the south – the richest family in 2012 actually coming from Mexico, rank 7 occupied by a Brazilian (see Forbes: The World’s Billionaires; http://www.forbes.com/billionaires/list/ – 06/12/2012). This is also reflected in the fact that the previously stable middle classes are increasingly crumbling away, Brazilianisation, we may speak in this respect of an Americanisation, looking at the turn of the society of self-made men towards a society of patchwork men – surely, the role of women even more under that.

So we may ask towards the end of this brief reflection if the main challenge of today is an attempt of levelling cycles including the orientation on a turning point; or a distributive shift. The first orientation is for instance strongly underlying contemporary debates on “Green Growth”. However, a problem posed by such orientation is that continues from and even strengthens the hegemony of a market society – mind: I am speaking of market society and not a market economy. Without delving into details, it is important to keep this distinction, as for instance importantly reflected upon by Karl Polanyi, in mind. The prevalent model and development of a market society is exactly that mechanism that is frequently problematised by social science and considered as matter of submitting the entire life under the auspices of the economy. It is about commodification, penetrating all pores of life as one side. And it translates into consumerism in connection with social positioning the wage worker, of which Karl Marx writes in the Economic and Philosophical Manuscripts of 1844 that

the fact that labor is external to the worker, i.e., it does not belong to his intrinsic nature; that in his work, therefore, he does not affirm himself but denies himself, does not feel content but unhappy, does not develop freely his physical and mental energy but mortifies his body and ruins his mind. The worker therefore only feels himself outside his work, and in his work feels outside himself. He feels at home when he is not working, and when he is working he does not feel at home.

(passim)

The alternative then is, indeed, the “re-establishment of society”. This goes far beyond a simple internalisation of costs, acknowledgement of non-market provisions and performances as part of “generating societal values” etc.. – Some shades of Keynesianism as for instance that advocated for by Joseph Stiglitz would argue for such orientation. It is about looking in a wider sense at the meaning of the production and reproduction of daily life. The Social Quality Approach looks at the social as

outcome of the interaction between people (constituted as actors) and their constructed and natural environment. Its subject matter refers to people’s interrelated productive and reproductive relationships. In other words, the constitutive interdependency between processes of self-realisation and processes governing the formation of collective identities is a condition for the social and its progress or decline.

(van der Maesen, Laurent J.G./Walker, Alan, 2012: Social Quality and Sustainability; in: van der Maesen, Laurent J.G./Walker, Alan (Eds.): Social quality: From Theory to indicators; Basingstoke: Macmillan: 250-274; here: 260)

To avoid any misunderstanding, this is not against the materialist understanding of

The materialist conception of history starts from the proposition that the production of the means to support human life and, next to production, the exchange of things produced, is the basis of all social structure

(Engels, op cit., passim)

Actually it is very much in support of this materialist conception, taking the entirety of living into consideration. It is about production and reproduction which is concerned with complex personalities and not with a simple de-contextualised biological mechanism. This includes technical and also mental changes the latter amongst other concerned with “modes of togetherness”. And as such changes of the mode of consumption are surely also a matter of course.

I tentatively suggest for further discussion the following moments for the actual changes we have to observe more closely, with this going far beyond searching for emergency measures that would be able to answer the immediate consequences of the current crisis:

the continued real socialisation of production in terms of bringing together

  • the two dimensions of appropriation, one being a technical matter, the other being a matter property and control (see in this context Herrmann, Peter/Dorrity, Claire, 2009: Critique of Pure Individualism; in: Dorrity, Claire/Herrmann, Peter [eds.], 2009: Social Professional Activity – The Search for a Minimum Common Denominator in Difference; New York: Nova Science: 1-27)
  • the true socialisation of costs – which paradoxically takes the form of privatisation of externalities
  • the shortening of consumption circles.

All this can well be captured by revisiting the meaning of assets, taking “invisible” and “non-material” assets closely into account. It is also in this materialist context where we can locate a critical discussion of social values.

children’s rights – ignorance or weakness?

Travelling over the last years, I felt here and there a bit ashamed – not because of hearing so bad things about the country. On the contrary, because of the praise I heard. First, it had been because of the celebrated bedside rug which, though from beginning outstretched on the floor pretended to be a tiger. Then, after the final total K.O. of the cat, because

…”Well, you Irish are so self-controlled, so disciplined when it comes to bearing the consequences of the crisis. No useless protests, just carrying on …”

I frequently said I am not too much friend of these attributions: ‘the Irish’, ‘the French’, ‘The Germans’ – dolce vita cannot only be found in bella Italia and the Greek police forces and their (para-)military helpers showed recently how much they are favouring law and order, probably doing better than the home-country of the high-ranking German visitor, Mrs Merkel.
Still, not being friend does not mean one can push such attributions easily away. At times it comes to my mind too: “we Irish”: first pushing the child into the well …, then shedding crocodile’s tears and finally coming up with an attempt to save the child from definite decease.
And as much as this is the pattern underlying the approach to the economy – actually since the 1950s (see the working paper Tíogar Ceilteach – An Enlargement Country of the 1970s as Showcase? in the series of William-Thomposon Working Papers) – it has found a new field of showing evidence, now actually literally dealing with children. All is about a referendum, scheduled for november now. The Taioseach (Irish Primeminister) bravely stepping forward, overcoming his apparent usual schizophrenia by uniting now the two souls:

As Taoiseach and as father I’m asking people to vote yes

Good boy – …good man, I should say and could add: a real politician, not just like the official administrator we know from Max Weber as being characterised by

Sine Ira et Studio

Rather, the real politican, engaged with all fibres of his body and soul. Well done, right? And we may wish to see more in this.

And although I try to be optimist a but asks for being allowed to enter the debate – it is not about “but don’t vote in favour of these rights as they are suggested with the change. It is more about the question

But why are you not really serious when it comes to children’s rights?

Let us have a brief look at the text of the Proposed New Article 42A – I saw it first here in the journal. And it reads as follows:

Children

1. The State recognises and affirms the natural and imprescriptible rights of all children and shall, as far as practicable, by its laws protect and vindicate those rights.

2. 1° In exceptional cases, where the parents, regardless of their marital status, fail in their duty towards their children to such extent that the safety or welfare of any of their children is likely to be prejudicially affected, the State as guardian of the common good shall, by proportionate means as provided by law, endeavour to supply the place of the parents, but always with due regard for the natural and imprescriptible rights of the child.

2° Provision shall be made by law for the adoption of any child where the parents have failed for such a period of time as may be prescribed by law in their duty towards the child and where the best interests of the child so require.

3. Provision shall be made by law for the voluntary placement for adoption and the adoption of any child.

4. 1° Provision shall be made by law that in the resolution of all proceedings –

i brought by the State, as guardian of the common good, for the purpose of preventing the safety and welfare of any child from being prejudicially affected, or

ii concerning the adoption, guardianship or custody of, or access to, any child, the best interests of the child shall be the paramount consideration.

2° Provision shall be made by law for securing, as far as practicable, that in all proceedings referred to in subsection 1° of this section in respect of any child who is capable of forming his or her own views, the views of the child shall be ascertained and given due weight having regard to the age and maturity of the child.

And it found positive feedback from here and there. Apparently a broad consensus  – and that is good so. But I am wondering if we would find this consensus also in case of taking things serious, not looking at the corpses but looking for, i.e. in favour of the living. The state should work towards conditions and their legal anchoring that allow children to develop freely under conditions of respect and equality. – Interestingly, the article mentioned first, making reference to experts, does not refer to children.

Having said before ‘The state should work towards conditions and their legal anchoring that allow children to develop freely under conditions of respect and equality’, means we have to look for a society that is not about

Work. Consume. Be Silent. Die.

as I saw it recently on a website, dealing with a young man who committed suicide.
This person made a choice – a tragic choice. But as tragic and individual, not to say lonely as this choice had been, one sentence on the website shocked me more than the decision itself. The sentence:

Es hat den Anschein, als würde man die gesamte Sozialpolitik in die private Verantwortlichkeit von Individuen verrücken.

or in my translation

It seems that the entire social policy would be shifted to the private realm of individuals.

It is exactly this what moral approaches to social policy frequently forget. It is exactly this what heads who claim to support social rights forget when they reduce these rights on the level of protection, forgetting the more fundamental issue:

Rights are fundamental and need to be defined in a perspective of social quality. They have to be defined as rights for everybody, from the very beginning rather than for the drowning child.

And of course, this goes back to the debate on the stillborn kitten which disguised for some time as strong tiger, before being unmasked as bedside rug. This is not about general values and ethics. It is not about muttering ‘that is neoloiberalism’, briefly shaking the head and continuing business as usuals. – Heads should know this at this stage: heads of politicians, and heads of academics working in the areas of social policy, social work and law alike. – I am freqeuntly surprised that my student’s usually know more about the complexities of realities than highly paid people working Sine Ira et Studio.
__________

PS: Being member of the editorial board, I am currently working for SOZIALEXTRA on one of the special topics of one of the issues: Human Rights – Children’s Rights – Human Rights as Question of Everyday’s Life

Growth, Greek and Teaching

A Change in my teaching program and implications for politics

Well, the title is a bit misleading – but fact is, for me: as abstract many things are when it comes to teaching economics there are so many things very much about daily lives and daily politics.

Some good news – had been asked to change my program for next years teaching in Budapest at the Corvinus University: A course on Development Economics.

A rather challenging task I think – and that is what I like: challenges.

Teaching about about this hugely contradictory issue of development in such a situation where we can see on the one hand that the traditional development model of capitalism failed – and we may add: failed completely – and at the same time it is strongly prevailing and orienting as matter that strongly guides policy makers. Of course, there is this global dimension – and since Rostow manifested his anticommunism in his pamphlet on on “Stages of Economic Growth” the traditional understanding of development is more or a simple translation of the paradigm of GDP-growth. More recent debates do not make major changes although they stepped slightly away from this tradition by including issues of sustainability and “well-being” – I engaged on some aspects and shortcoming of these debates in the contribution to the International Journal of Social Quality, titled

Economic Performance, Social Progress and Social Quality—Social Sustainability Waiting in the Wings

 But there is more to it – some aspects I developed in earlier blog entries, looking at questions of growth and trying to link it to the fundamental issue of the structural fracture between use value and exchange value. These entries had been titled Sustainability, Non-Sustainability and Crime I, Sustainability, Non-Sustainability, Crime II and Growth and Development and finally the presentation during the recent Poznan-workshop of the EuroMemo-group, which I elaborated very much with Marica Frangakis (Nicos Polulantzas Institute, Athens), also reflected on these issues.

The new course now – teaching is learning, and not just students sitting down and listening bit developing together with the students the new issues – gives an opportunity to develop this further. One point is surely about the systematisation, or should I even say: the precise formulation of the question. Contrary to the mainstream approaches that tend to give first answers, and after that search for the question, there is some need in return to the drawing board …. But then there is another point, namely the systematic (dis)entanglement of the different layers of the analysis. This concerns especially a differentiated approach with respect to local and “societal” dimensions of development, as well as it requires to look at situations of individuals on the one side and collectivities on the other side. As a working thesis we may say that the separation of use and exchange value is very much complemented by a juxtaposition of different aggregate levels. In other words, we see tensional relationships between

  • different aggregate levels
  • individual and social dimensions
  • relevant proprieties.

A thorough approach to this multilayered perspective can help in two ways. It may open a way to approaches to the development that are predominantly based on normative settings. And furthermore it allows us to contribute to a sound debate on methodological individualism.

On some political implication of immediate interest. Greece – more than for instance Italy, Spain, Portugal and Ireland – is currently in the news. This is in various ways interesting.

One interesting fact is at least worth a side remark: The mass protests going on for a lengthy time now, and actually at least comparably strong in Spain and Portugal[1] did not nurture the same media spectacle as the visit of the German Prime-Minister (Kanzlerin) Merkel. This is very similar to the very old patterns: when the emperor comes, the streets have to be ready for the theatre. And so the protests had been countered with even more violence than there had been before. And a shocking photo had been circulated yesterday on facebook – not one of the many photos showing the brute force of security staff (though they surely had been shocking too), but the shocking photo that showed the decoration for the welcome of AM: blue-white—-black-red-gold—-blue-white—-black-red-gold—-blue-white—-black-red-gold—- – I did not count the flags, enough though to cover many of the victims of this war of the people. – And we should not refrain from saying what it is: a war against a people not just on the open battlefield but on the battlefield of an austerity strategy that is “killing softly” – making it nearly impossible for many children to go to school because they are starving, detaining necessary health services …. – and this happens in a country where only few people have sufficient resources to solve the monetary problems. IF they WOULD PAY taxes, the problem would basically not exist. IF they WOULD CONTRIBUTE to solving the national debt problem rather than contributing to the Swiss, Luxembourgian etc banking profits people could successfully claim what human rights declarations grant on paper but do not allow to be an issue in people’s real life. If politicians would people and their representatives serious solutions could be found – solutions meaning something different than huge programs that (simplified, admitted) shift money from the tax payer in Germany to the banks in Greece from the taxpayer in Greece to the banks in Germany (see also the interview I gave earlier in Athens).

This brings us to the second issue. As easy it is for the Greek government to listen to Merkel rather than to the Greek people it is also easy to speak the old prayer of growth. As important as it is to appreciate the need for a development that is rooted in growth, as important is to start thinking about what growth is about. Sure, as biologist Merkel could easily skip the lessons on Aristotle and Marx (admittedly GDR-education had not been perfect – AM is a showcase for failure) – and so she missed that it is necessary to move a bit further and look at the real meaning of development. Let us for instance refer to Aristotle. He contended that

if every tool, when summoned, or even of its own accord, could do the work that befits it, just as the creations of Daedalus moved of themselves, or the tripods of Hephaestos went of their own accord to their sacred work, if the weavers‘ shuttles were to weave of themselves, then there would be no need either of apprentices for the master workers, or of slaves for the lords.

But indeed, Marx referred to this paragraph, writing in the first volume of The Capital (from which I took the previous quote):

Oh! those heathens! They understood, as the learned Bastiat, and before him the still wiser MacCulloch have discovered, nothing of Political Economy and Christianity. They did not, for example, comprehend that machinery is the surest means of lengthening the working day. They perhaps excused the slavery of one on the ground that it was a means to the full development of another. But to preach slavery of the masses, in order that a few crude and half-educated parvenus, might become ― eminent spinners, ― extensive sausage-makers, and ― influential shoe-black dealers, to do this, they lacked the bump of Christianity.

And this marks the point any debate on growth has to take as point of departure – the concrete situation of peoples lives rather than the  abstract calculation of growth figures. A quick overview over developments shows at least two different things:

  • the growth, and in particular the extreme and rapid growth had been gong hand in hand with increasing inequalities;
  • the growth had been in many cases – and Greece is an exemple par excellence – only possible by diminishing indigenous potentials in favour of growth of national and international elites.

In this light, I surely could teach AM some basics in political economy and the course: That development is not about figures but about people in their societies. And the development of societies through and for the people.

Too late for her, I guess – though she should have enough money to pay the fees for the course – unfortunately Mr Orban and his FIDESZ easily succeeded with this program against democratic, accessible education. Still I hope: perhaps one or the other of my students will get into some kind of government position and show: ANOTHER WORLD IS POSSIBLE.


[1]             The optimistic interpretation of the relative silence in Italy is that people may be afraid that Berlusconi could interpret protest as people calling him back into office (cannot find the article I read recently in some Italian paper); silence in Ireland is more due to the ongoing belief that god, Fianna Fáil and Fine Gael freed the country from the British colonialists and thus god, will know when it is time to move towards a better world).

Growth and Development

Background notes for the EuroMemo conference 2012 in Poznan

I.

In the discussion of growth we face some fundamental problems, emerging from principle tensions.

*        We are living in a capitalist system which is ultimate point of reference and its functioning basic condition when it comes today to searching security and improvement of living conditions.

*        However, exactly this ‘productive order’ is for many of us questionable – one of the reasons that is at this point of special relevance is the structural limitation of a one-sided understanding of the goal: it is the concern with living conditions in a limited, individualised understanding, not allowing a wider understanding of social conditions of life. Perhaps we should go a step further by simply speaking of social life itself.

II.

*        Accumulation is against this background a double-edged sword: on the one hand it is a ‘structural condition and goal’ of the capitalist order;

*        on the other hand, however, it is the permanent accumulation that causes a move away from the actual process of production although it remains depending on production as ultimate condition.

III.

*        Development and growth finds within this system its primary goal in the means of production as means of accumulation – independent of the meaning for the life of producers (working and living conditions). As such, accumulation becomes an empty shell, having lost all substance. Most visible signs are the process by which the different elements of the overall productive process, in particular the emergence of a seemingly independent financial sector are gaining independence from each other; and the disentanglement of productive processes out of the ‘core economic process’ (housework, DIY, SLEA …)

*        However, as consequence of this depletion

[t]his type of development of productivity necessarily approaches a limit. This is reached when the expenditure in past labour wholly compensates economy of living labour and the overall productivity of the system ceases to progress. The resulting evolution of productive forces leads to overdevelopment of the material means used, reduction in living labour and increased unemployment.

(Fontvieille, Louis: 1992: Rate of Profit and its Determining Factors; in: New Findings in Long-Wave Research; Kleinknecht, A./Mandel, E./Wallerstein, I. (eds.); New York: St. Martins Press: 203-224; here: 219 f.)

Both aspects culminate in one aspect that has to be added to the statement in the quotation: This reduction in living labour is to some extent real; however, at the same time it is only shifting living labour into external spheres, thus not least reducing the labour costs while the value of price of the labour force remains unchanged.

IV.

This constellation poses a fundamental challenge which can be put forward by the following outline:

1        It has to be analysed if capitalism has predominantly sufficient resources for reaching a new level of self-regulation and -stabilisation or if such ‘inner-capitalist development’ is unlikely (see: Mandel, Ernest, 1992: The International Debate on Long Waves; in: ibid.: 316-338; here: 332).

2        A ‘non-capitalist perspective’, however, does not necessarily mean a socialist perspective – on another occasion I sketched some issues of a possible re-feudalisation (Herrmann, Peter, 2010: Encore Citizenship – Revisiting or Redefining?; in: Herrmann, Peter, ed.: World’s New Princedoms Critical Remarks on Claimed Alternatives by New Life; Amsterdam: Rozenberg Publishers: 17-75). And I think (or should I say: I am afraid) that this needs further elaboration. On the other hand, we should follow strictly the proposal put forward by Ernst Bloch who speaks

of four different kinds of possibilities, allowing us with this an informed approach to understanding them in their objectivity. He points on (i) the formally possible – what is possible according to its logical structure; (ii) the objectively possible – possible being based on assumptions on the ground of epistemologically based knowledge; (iii) the objectively possible – possible as it follows from the options inherently given by the object; (iv) and the objectively real possible – possible by following the latency and tendency which is inherent in its elementary form.

(Herrmann, Peter, 2010: Human Rights, Health and Social Quality – Realisations and Realities; in: Laurinkari, Juhani (Ed.) Health, Wellness and Social Policy. Essays in honour of Guy Bäckman; Bremen: Europaeischer Hochschulverlag; with reference to Bloch, Ernst, 1959: Prinzip Hoffnung; Frankfurt/M: Suhrkamp [written in 1938-1947; reviewed 1953 and 1959]: 258-288)

3        Looking then at growth, it seems to be more appropriate to look at development rather than maintaining the orientation on growth. It is unlikely that the latter allows capturing qualitative moments rather than limiting matters on quantified aggregations. Not least important is the fact that elaborating an understanding of development requires inevitably to outline a systemic understanding of what we re actually talking about – as such we are very much offering a positive contribution to the various debates around ‘Going Beyond GDP’. Furthermore, it allows a qualified critique of ‘New Green Deal’ arguments.

It should be noted with special interest that we find in the literature presentations that do not even consider the need of defining growth. It appears as a ‘given fiat’, something that does not need any definition or conceptualisation, let alone questioning. Furthermore, it is light-heartedly confused with development. Looking for instance at the work on the Diversity of Growth (McMahon, Gary/Esfahani, Hadi Salehi/Suire, Lyn [eds.], 2009: Diversity in Economic Growth. Global Insights and Explanations; Cheltenham: Edward Elgar), we see a striking divergence of the lack of conceptualisation of growth and the eagerness towards a differentiated analysis of the conditions of growth.

V.

In particular with reference to IV j it is suggested to see growth as an in principle static concept. The main orientation is on a ‘soft-landing’ (Mandel), i.e. the maintenance of the accumulation for its own sake. We may see the historical patterns of inner-capitalist development as characterised by the well-known cyclical patterns of three overlapping moments:

  • business cycles – reflecting supply and demand
  • conjunctural cycles – reflecting the aggregate fluctuation as reflection of capacities (and the move between departments and sectors), and
  • major cycles – as matter of major changes of the framework for and basis of accumulation.

Although we are concerned with far-reaching changes, they are only a matter of changes of the capitalist accumulation regime itself. Consequently they do not question the capitalist character of accumulation itself. In other words, the main point of reference is profitability of capital, and with this the rate of profit. Again in other words, the dynamic as presented with these different modes of business, conjunctural and major cycles is nothing else than the capitalist mechanism to counteract the tendency of the profit rate to fall.

VI.

This requires to look for a more differentiated view on accumulation regimes. As reference, Lipietz’ definition is helpful, seeing

the regime of accumulation [as] stabilization over a long period of the allocation of the net product between consumption and accumulation’ which ‘implies some correspondence between the transformation of both the conditions of production and the conditions of the reproduction of wage earners.

(Lipietz, Alain, 1986: New Tendencies in the International Division of Labor: Regimes of Accumulation and Modes of Regulation; in: Scott/Allen J./Storper, Michael [eds.]: Production, Work, Territory. The Geographical Anatomy of Industrial Capitalism; Boston/London/Sidney: Allen&Unwin: 16-40; here: 19)

1        Crises are well-known as points of change – and we can specify: changes are not only but as well very much concerned with changes of the accumulation regime. The French theory of regulation (Aglietta et altera) refers fundamentally to only two different regimes, namely the Fordist and the Post-Fordist regime. This is in the present author’s view extremely limited, being based on a limited understanding of capitalism[1] and thus failing to realise a much wider potential of the analysis.

    A hint for a wider understanding can be taken from the following presentation:

As capital accumulation becomes more intensive capital tends to become more concentrated , and the relative power of capital vis-à-vis labour … is changing. All this is occurring while the forms of competition, and therefore the industrial and financial structures, evolve. This is the history of contemporary capitalism. The ‘passage’ from a relatively competitive capitalism to one that is often called ‘monopolistic’ took place essentially during the ‘Great Depression’ at the end of the nineteenth century for reasons that were not only economic (economies of scale, market power) but even more social (the centralisation of capital is also the centralisation of capital is also the centralisation of labour, a process intended to heighten the possibility of social control given the rise to trade unionism). ‘Monopoly’ capitalism is thus the product of a stressful long-wave downturn, in which economic conflicts criss-cross with social and political conflicts, and as a result of which a new socio-economic paradigm is put in place.

(Dockès, Pierre/Rosier, Bernard, 1992: Long Waves. The Dialectic of Innovation and Conflict; in: New Findings …; op.cit.: 301-315; here: 309)

2        Tentatively, the following dimensions may be suggested as reference points for a differentiated view on accumulation regimes:

a        capital intensity

b        (raw-)material dependency

c        labour intensity

d        indigeneity/international dependencye        relative strength of department I, II, and III respectivelyf        class relations and regulatory mechanisms

3        Again only tentative, the following regimes are proposed:

a        merchant capitalism/industrialising

b        early industrialist capitalism

c        Fordism

d        state monopolist capitalism

e        service-regulationist capitalism

f        post-Fordist capitalism

g        ‘supra-national state-monopoly capitalism’ (Thomas Kuczynski)

This is surely not an exhaustive classification. One point that springs immediately to mind is concerned with the usefulness of a separate monopolist stage.

4 The perspectives presented under 2 and 3 can now be combined by transferring them into a matrix.

capital intensity

(raw-)material dependency

labour intensity

indigeneity/in-ternational dependency

relative strength of department I, II, and III respectively

class relations and regulatory mechanisms

merchant capitalism/industrialising

early industrialist capitalism

Fordism

state monopolist capitalism

service-regulationist capitalism

post-Fordist capitalism

‘supra-national state-monopoly capitalism’

5        It can now be asked if accumulation is actually also an issue in non-capitalist, here: socialist formations. If we give an affirmative answer we are required to reconceptualise both, the understanding of accumulation and of accumulation regimes. The ultimate point of reference has to be clearly defined by the genuine orientation of an immediate link between human practice (as [re-]production of and in everyday’s life] and the economic process. The mediation based in the capitalist form of commodities must be overcome. Paul Boccara contends for the capitalist formation that

[r]egulation concerns the inciting of progress in material productive forces (and in labour productivity) and the fighting of obstacles to such progress.

(Boccara, Paul, 1973: Etudes sur le capitalisme monopoliste d’Etat, sa crise et son issue ; Paris : Editions Sociales; qouted in Fonvieille, Louis, 1992: Rate of Profite and its Determining Factors; in: New Findings …; op.cit.: 203-224; here: 204)

    Under non-capitalist conditions this should be translated into a concern with the means needed for (re-)producing and improving everyday’s life. ‘The economy’ is now decisively only a means to an end which can be considered as ‘external’, an annex in which social practice finds one and only one expression, as far as it is concerned with the production of the social itself. In actual fact it is more precise to see here the true socialisation of production, i.e. the emphasis of the social character of production.

6        From here we can return to the question of growth as part of development. The two main lines are about growth in capitalist societies and in non-capitalist formations.

    Within capitalist societies we have the different contexts in which growth has to be seen: as cyclical movement aiming on short-term equilibration and as cyclical movement creating new areas fro accumulation after principle breaks in socio-technical respects. A first useful reference can be drawn from Menshikov’s view on ‘overall capital’, i.e.

not only capital materialised in new production equipment and research facilities, but also capital embodied in the whole new economic structure. This includes:

1.   New industries and plants which are built in the course of the technological revolution;

2.   Capital invested in producing new products – producing equipment, consumer and producer goods, new materials and types of energy;

3.   Capital invested in new infrastructure installed to serve new industries;

4.   Capital invested in creating new kinds of business organisation;

       and

5.   Capital in new government institutions and activities which are set up or expanded to support the new economic structure.

(Menshikov, Stanislav, 1992: The Long Wave as Endogenous Mechanism; in: New Findings …; op.cit.: 233-256; here: 246)

Important is also to investigate thoroughly the many parts of the overall actual social and societal production that are not commonly part of the GDP-calculations. Exploring this in detail requires a major empirical effort – even if we take an approach simply to growth as accumulation of capital, we have to consider its multifaceted character by way of itemising the existing GDP and those parts that are systematically left out.

This is a commonly recognised problem, however the readiness to take up the challenge in an integrating way is by and large missing. A telling example is the work of the Commission on the Measurement of Economic Performance and Social Progress, chaired by Jospeh Stiglitz, Amartya Sen acting as chair-advisor and Jean-Paul Fitoussi acting as coordinator (see for the work and also for the report http://www.stiglitz-sen-fitoussi.fr – 25/12/2010 10:56 a.m.). Although they criticise the GDP for its limitations, they do not offer a sound solution. Instead we find a kind of crib: if a coherently consolidated (system of) indicators is not in sight, a solution is suggested by running three indicator sets in parallel, concerned with the ‘Classical GDP-Issues’, ‘Quality of Life’ and ‘Sustainable Development and Environment’. This may be seen as progress. But it may also be seen as locking up of disintegration. Such parallelisation misses that a sound elaboration of indicators depends on an integrated approach. Cost-benefit analysis, properly understood, cannot be sufficiently undertaken in a ‘treble-entry accounting’. Rather it has to search for a way that allows fully integrating the different factors rather than setting them side-by-side. The latter results in such paradoxes as the ‘positive value’ of work that is undertaken in order to repair environmental damage (and already the ‘positive value’ of activities that damage the environment); or taking another – typical – example is the loss of GDP-contribution by non-employment-based activities which may contribute to ‘Quality of Life’ or ‘Sustainable Development and Environment’. I discussed relevant issues already in an article on ‘Economic Performance, Social Progress and Social Quality’ (see Herrmann, Peter, 2012: Economic Performance, Social Progress and Social Quality; in: International Journal of Social Quality 2(1), Summer 2012; © Zhejiang University, European Foundation on Social Quality and Berghahn Journals: 43–57 doi:10.3167/IJSQ.2011.010204). Whereas I discussed on that occasion more the conceptual perspective in the light of the lack of a sound understanding of the ‘quality of life’, it is at present of interest to emphasise that we have to look even in an affirmative perspective at more or less simple mechanisms of cost-benefit analysis. The to main factors that are needed for such an analysis are

  • the offset of private and societal costs/benefits and
  • the inclusion of the time perspective.

There are no clear criteria for the length of the latter – for pragmatic reasons it is suggested to refer to one generation the substantial reasoning behind this is rather simple: it can suggest a span of sustainability which then is permanently perpetuated. The overlapping of generations means that under the condition of ‘one-generation-sustainability’ sustainability is secured in the long run.

It is of crucial importance that this is immediately linked to the value of labour power. This is a matter that needs much more exploration, not least as we have to look at both sides: the pressure on the value of labour power, the push in terms of covering the costs of the value of labour power (towards social benefits, ‘low cost provisions’ and ‘outlets’ but also the actual increase of the value of labour power as matter new groups as bearers of new qualifications etc. (see in this context Fontvieille; op.cit.: 210/12).

VII.

To some extent this opens also a connection between micro and macro-perspective. It is the contradiction – as requirement to permanently balance the profit rates, looking at the variable and the constant capital on the level of the enterprise level and the level of the macro-economy.

VIII.

To clarify and gauge patterns of growth, the following questions will be useful as guideline.[2]

1        What grows?

2        What is the purpose of this growth?

3        Who is the direct beneficiary?

    Who is the indirect beneficiary? – Differentiated according to individuals, classes, society, state[3]

4        What are the means of growth?

    Differentiated according to different ‘factor inputs’ and kinds of capital/‘capital sections’

5        What are the costs of growth?

6        Who actually bears them?

    Differentiated according to individuals, classes, society, state[4]

IX.

Different capitalist forces and interests and the contradictions between different sections and fractions of the capital should not be neglected. They play a huge role not least in connection with the determination of the cost of labour and the question who actually pays them (see already the statement at the end of VI.)


[1]            In part this can be explained by the origin of the research, namely Aglietta’s empirical study (Aglietta, Michel, 1976: A theory of capitalist regulation. London: Verso) which had been by its own claim limited.

[2]            See already VI. 4

[3]            The differentiation between society and state may be important as in several cases the state will be used as means of distribution or also as means of ‘real cover by societal’

[4]            The differentiation between society and state may be important as in several cases the state will be used as means of distribution or also as means of ‘real cover by societal’

Sustainability, Non-Sustainability and Crime II

In the wider context of sustainability we have to deal not least with growth – to be more precise: the obsession with growth. Of course, this term is, at this stage, hugely problematic – a matter that is at this stage even widely accepted in mainstream economics and social science.

It is not least problematic if we take it as universally valid pattern.

(i) Growth is typically biased, limited to a quantifiable development, leaving by its very definition qualitative aspects out of consideration.

(ii) It also undermines even conceptualising systematically any non-commodifiable aspects of life (take happiness e.g.: we would speak of increasing happiness, not of growing happiness).

(iii) Growth is with this perspective in principle and inherently a completely individualist concept – even in its pretended ‘social’ understanding (for instance as matter of macro-economic growth) it is based on methodological individualism.

(iv) It is then difficult (if not impossible) to conceptualise ‘needs’ in a globally differentiated way: conventional growth is surely nothing needed in the so-called developed world; on the other hand we find in many regions severe under-supply of goods; as far as this undersupply is a matter of the lack of means of subsistence and ‘basic goods’, the answer will be obvious. However, in several cases there may be an unquestionable need although the means of satisfaction are not defined. An example for the latter can be seen in India where we find attempts to introduce cheap, i.e. affordable cars. This may well be an example where the need (transport for everybody) cannot and should not be questioned; but where the means to answer this need cannot be seen as given – in some respect the need may actually be limited (spreading availability of services, increasing local production by decentralisation  …); in another respect the means of transport can be directed in different ways rather than orienting on private means.

Fundamentally questionable presumptions are at least the following:

  • Growth is understood as growth of the production of ‘goods’ and with this actually leading to an understanding of economic processes based in consumption as ultimate end of the process. – It would be different by looking at (re)production of daily life (and the related means) as ultimate end. Only then economic growth would be a means rather than an end in itself.
  • This means also that production in the mainstream understanding is only narrowly understood, namely as production of goods. However, it is necessary to go beyond this understanding, searching for ways of determining other ‘means of production’, which themselves produce the ultimate product, i.e. daily life of socio-individual beings.
  • With this, a further qualification emerges: considering the human being as genuinely and indispensably social being requires – in the light of the demand of sustainable sociability – accepting equity not as secondary, i.e. as result of growth of the production of goods (thus is the fallacy of mainstream economics). Instead, equity is condition, i.e. means of production of sustainable sociability. – The latter can easily be shown by several empirical studies, for instance those that point at the Nordic countries facing less problems during crisis; cooperatives being let hit by the crisis etc.
  • Another and fundamental fallacy is that growth strategies as they exist today are to a large extent only mechanisms of (i) distribution and (ii) externalisation. A few remarks may be exemplifying this.

Space

We find some evidence for emerging and increasing poverty, developing in countries exactly at that time when they closely entered the global economy …, and when they did so as ‘explicit periphery’ of the world economy. So-called developing countries had been for a long time sufficiently strong in their own reproductive and sustaining way before entering fully the global economy.[1]

Social I

We find several mechanisms of externalisation, not least ‘shifting costs’ to the organic environment (nature)

Social II

A further social dimension can be seen in ‘by-production’ and parasite-production: enterprises produce political influence (CSOs sitting on political boards); contribute to welfare (foundations); NGOs produce services; households are engaged in DIY-production and so on.

Time

In many cases this can be closely linked to processes of tempoarilisation of costs, shifting them to later generations.

I am not yet sure if ‘development’ is a sufficiently thought through alternative – development carries with it the burden of Rostowian modernism though it can surely be questioned if this is a necessary burden.[2] One additional fundamental critique of growth emerges in this context: growth emerged in the meantime as by and large nationalist concept, being closely linked with the mechanisms of competitiveness. To the extent to which this is true, a Green Deal is highly problematic as long as it is conceptualised with the emphasis on ‘changed growth’ rather than changed understanding of ‘buen vivir’.

As long as we follow the mainstream growth model, we have to be aware that  there are two issues that are of fundamental importance, although they are easily overlooked at least in terms of their consequential character: the current model is based on two patterns that are frequently and in popular gist considered to be exceptions but that are actual fact structural foundation of the system – as such they are closely knit into the factors that had been laid before us in the previous paragraphs:

  • debt is the one
  • the other one is crisis.

The strictly economic side of debt can easily be described – and much had been written about it. It is not always considered sufficiently that there is a fundamental difference between private and public debt but by and large it is probably fair enough to say that the difference is usually seen and only naive political jargon draws simple comparisons. The perspective from political economy is a bit more difficult – but in any case it is also fundamentally a concern with a rather traditional model of growth, in particular looking at the wider understanding of distributing economic components over time. This is then not only a matter of financing current investment on the account of expected gain in the future. At least equally important are various inherent mechanisms of social transfer, as for instance business investment loans financed by agglomerating savings of private households, ‘cold expropriation’ of private and business households by the means of undervalued government loans (e.g. a short note on this here), shifts of public money to private businesses using also mechanisms of tax exemption and tax evasion.

However, another perspective has also to be considered, it is concerned with the soci(et)al time perspective. Both, personal and social history are based on a loan taken from the future, however without sufficient cover. The reason for the lack of security is not a matter of overspending. In order to understand the contradiction, it is not sufficient to consider the (im)balance between spending and borrowing – these are actually by and large brought into congruence with each other via various mechanisms of the economic crisis – a mechanism which is, at least insofar we are talking about a crisis of consolidation, nothing else than forceful negotiations which decide who is paying which share. This can be roughly broken down to the following: the investors, the mediators, the consumers. Still, there is another factor, socially constructed by a specific political-economic understanding, namely the ideology of infinite growth: it is the suggestion that the major share is paid by the future. So – simplified – we end up with the following rough scheme:

Current debt

Loan from future 1

Delayed payment:

Loan from future 2

Societal

Societal

Societal

Investor

Investor

Consumer

Consumer

paid by soci(et)al inequality

paid by societal inequity

remaining unpaid

At this stage it does not play a role if we are talking about debt in monetary terms, energy, raw material, space … . Importantly we have to aim n maintaining the link

  • between production and reproduction of daily life

and also

  • between the needs and means as mentioned earlier with reference to Wilhelm von Humboldt.

And of course, we can then clearly see the justification of speaking in the title of the crime of lacking sustainability: It is even in positive law – in terms of the criteria set by this society – a crime insofar it disrespects the fundamental principle of contracts: contracts are actually drawn with a party that is not part of the negotiations.

We can come back to what had been said before: for understanding the contradiction, it is not sufficient to consider the (im)balance between spending and borrowing. Such perspective is simply limited to the realm of circulation. However, the real imbalances are on the level of production. For a clearer understanding of such localisation we have to distinguish at least analytically the following dimensions – always keeping in mind that the fundamental reference is the production and reproduction of daily life. The following is suggested:

  • Systemic (re-)production, i.e. the (re-)production of the socio-political-economic system itself. Part of it is well reflected in the definition of the accumulation regime as brought forward the Régulationist School. Important is to consider that the definition is established by drawing a close link between production and reproduction, looking at

stabilization over a long period of the allocation of the net product between consumption and accumulation which implies some correspondence between the transformation of both the conditions of production and the conditions of the reproduction of wage earners.[3]

  • Personal (re)production, i.e. the (re)production of individuals and private households, importantly establishing a link between development of personalities and their ‘fit’ into the societal relations and vice versa.
  • National (re)production, i.e. the (re)production which is mainly concerned with a specific part of the systemic (re)production, however, limiting this to a certain social space and in turn providing a basis for specific exclusionary structurations
  • Class and cleavage (re)production, i.e. the (re)production of different relations that socio-politically ‘order’ the positions within the overall relationality.

Two factors are of major importance. First, social and political divisions find their original foundation in the first of these (re)production-schemes, i.e. on the systemic level. However, these can only emerge from the division of roles – a matter of division of labour and also of – only in part subsequent – division of power positions. Second, in all these cases we find specific environmentalisations. With this term I suggest that human beings define themselves as depending in different degrees from the natural conditions of the organic environment, the other way round: the tendency to externalise of organic environment. This independence is itself relative as much as it is defined by human agency’s individual and/or collective ability to control the organic nature. It should be clear, however, that the dependency is a relational one. The highest thinkable degree of independence is one of the ability to make perfect use of the organic forces – though they cannot be overcome nor can human beings transcend their own organic essence.

Tensions and contradictions emerge within each of these realms and also between them – an apparently incalculable net of relations. These tensions and contradictions are in their historically specific form definiens of historical structures of meaning. – And this can be – and is at times – the nihilist demeaning of everything, arbitrariness of existence that is getting aware of the crime of lacking sustainability.

Is there a way out? One way out is the amplified nihilism: denial of the future, suggesting that the debt is already to high to be paid back at any one stage. Another is the religious or otherwise value-ridden suggestion that another world is longed for – and thus it should be possible: the internalisation of a deeply felt enigma and frequently the idealisation of the past and the suggested eternal while facing the crumbling away of parts of reality. There are technical suggestions – green deal and decoupling.

Finally – and in part contradicting the aforementioned suggestions – there is the need to concentrate really on a new mode of production as core of a new societal formation. This surely has to be socialist in its very core. But being socialist has to thoroughly consider a new productive basis under non-industrialist conditions. An important question is in which way socialisation of production can be employed as a means also of ‘steering needs’.

Part of the necessary analysis is to clearly answer in a differentiated way the questions of what is needed, how this is determined and who the actual producer is.

Including importantly the questions of capitalisation and commodification of labour power

This includes material, immaterial, mediated/symbolic dimensions

What id actually needed for the (re)production of daily life

Important is also the differentiation between the departments (I & II according to Marx; in addition III according to Luxemburg; in my own opinion this needs today further differentiation, for instance by looking at the service sector as candidate for a further department)

Including the question of marketisation[4] and commodification

How the need is determined – e.g. by physical necessity, social definition, technological requirements or suggestions … (a new approach to Maslow?)
By whom is actually produced (incl. public households,[5] private households, NGOs, as ‘by-product’ of other processes …)

[1]            It remains to be discussed how this relates to the thesis of world systems theory, in particular the interpretation by Gills and Frank (see Frank, Andre Gunder/Gills, Barry K. (eds.) 1993: The World System. Five Hundred Years or Five Thousand?; London/New York: Routledge); furthermore it would be interesting to analyse in this context the theory of major cycles (Kondratieff waves).

[2]            Part of this is more extensively reflected upon in my article  ‘Indicators – More than Evidence and Maths; forthcoming in: Journal of Globalization Studies’, Association with the Faculty of Global Processes of the Lomonosov Moscow State University; Eds.: Leonid Grinin/Andrey Korotayev/Victor de Munck/James Sheffield; Volgograd: Uchitel; and the more extensive document from the Cork-presentation on occasion of the Poverty Summer School at University College Cork.

[3]            Lipietz, Alain, 1986: New Tendencies in International Division of Labour: Regimes of Accumulation and Nodes of Regulation, in: Production, Work, Territory; Scott, A.J./Storper, M. (eds.); London: Allen Unwin: 16-40, here: 19

[4]            Important to note that marketisation does not necessarily means capitalist markets.

[5]            In addition public goods though they are not necessarily produced by public bodies.

Sustainability, Non-Sustainability and Crime I

Debates on sustainability, if taken in as matter dealing with a wider, social understanding of the issue in question, are frequently linked to a rather mechanical understanding of needs, and in this context  reference is not least made to considerations on marginal utility and the subsequent thesis that at a certain point any additional consumed unit does not lead any additional (or only a minimal increase of) satisfaction. Even an adverse effect can be made out in cases where we can speak of definite overconsumption. The commonly presented thesis is that there is a point of saturation  beyond which no ‘added value’ is possible. And of course, there is a close link then also to the Pareto-optimum.

However, the entire approach is based on a fundamental flaw, only dealing with numbers and different weighing, loosing the underlying qualitative aspect out of sight. Utilities can in deed be quantified. However, this is presupposing that use value and exchange value are distinct units, at least in tendency separate from each others. Actually, in this view they both take distinct physical forms, the one being the actual ‘good’, the other its money-form.

Such approach may be fundamentally criticised by bringing two aspects together – which also means by referring to the following two conditions:

  • the consuming and the paying entities are basically identical.
    – Of course, in a macro-economic perspective this can only mean that in a long-term perspective (in the last instance) externalisation is not possible
  • the utility value is not understood as matter of ‘consumption; rather , consumption is itself (part of) a productive process (as outlined for instance in the Grundrisse by Marx) and s such production is meant to be a matter of ‘empowerment’. The ‘utility’ is ‘mastery of life’ – right in the understanding put forward by Engels:

The materialist conception of history starts from the proposition that the production of the means to support human life and, next to production, the exchange of things produced, is the basis of all social structure; that in every society that has appeared in history, the manner in which wealth is distributed and society divided into classes or orders is dependent upon what is produced, how it is produced, and how the products are exchanged.

What Engels is presenting is a fundamentally and genuinely social relationship, not simply inescapable but even without a want to escape. Production, products and consumption are very much an entity, in the same way as the individual is not social by his/her interaction with others but its own intrinsic existence.

Against this background we ay turn our attention to Wilhelm von Humboldt and his work on The Limits of State Action.[1] Towards the end of his treatise he looks at the question of prevention of crime, however, importantly linking this to the question of causes of crime.    He contends that

… all prevention of crime must be directed to its causes. But these causes, which are so infinitely varied, might be expressed perhaps in a general formula as the feeling, not sufficiently resisted by reason, of the disparity between the inclinations of the agent and the means in his power for gratifying them. (117 f.)

And from here he continues:

Although it might be very difficult to distinguish them in particular instances, there would be, in general, two distinct cases of this disproportion; firstly, when it arises from a real excess of desires, and, secondly, when it results from a lack of means to satisfy even ordinary inclinations. (118)

We have to try to stripe off all this fundamentalist individualism that characterise Humboldt’s remarks – and then they may actually be rather meaningful to grasp more thoroughly the challenges we face today, as much as we faced them already throughout history of mankind. In other words, the challenges about sustainability and a new understanding of what economic activities are about are not new – however, they are permanently captured by a tensional relationship that is characteristic in different dimensions, sometimes occurring in parallel, sometimes in a somewhat alternating way.

It is frequently said that today’s economies are structurally depending on debt – debt together with quantitative growth are suggested to be an indispensable condition of stability. Leaving the inherent contradiction aside: stability – as far as it resembles stasis – is made dependent on two dynamic aspects, one of the main problems seems to be that  the entire pattern is based on a fundamental contradiction – a tearing apart of entities.

Consumption is in a twofold way separated from its productive dimension: it is suggested as independent from the process of manufacturing (production of goods) and it is furthermore suggested to be independent from the production and reproduction of human existence. However, in bot, economic and social theories these two ‘divisions’ are not sufficiently considered. In other words, difference and connection between productive and non-productive consumption are left outside of analytical considerations. Cum grano salis, the same is true fro production as matter of reproduction. By this, the goal of reproduction is turned away from its original perspective, now not being concerned with human beings but with socio-economic systems.

Thus, the task of policies on social sustainability have to take up the challenge to establish and maintain ‘blocks against externalisation’ as every of the before-mentioned separations are also mechanisms of socio-economic externalisation.

Though it remains for the moment open to properly relate happiness, prosperity, flourishing, wealth etc. we may see a perspective. If we have, according to Amartya Sen, to look at ‘capabilities needed to flourish’ (Sen, see also Nussbaum) we may concretise this by defining flourishing primarily as developing contentness against the disparity as it is outlined by Humboldt, the

disparity between the inclinations of the agent and the means in his power for gratifying them.

Functionings, as frequently centre-staged by Sen, are now also matters of the ‘social individuals’, partially independent of the functioning of social systems – and dialectically in this way determining new perspectives for these systems.


[1]      1791/92; ed.: J.B. Burrow; Indianapolis: Liberty Fund, 1993

‘Global Nationalism’: Economics – Social Quality – Measurement

or:

Traps of mathematisation, equivalence principle with the claim of exchangeability, individualisation and finally evidence.

The following are some general thoughts, employing my thinking while preparing the presentation for the Poverty Summer School at UCC -more than can be said, less than could be said but a minimum that should be considered, not onky when thinking about thinking about poverty.

This is a preliminary text, an elaborated version will be published elswhere.

*********************

General Introduction

Moving between the worlds – it means not least that one has to deal with different and multiple facets of a complex picture – and considerations on different aspects of analytical thinking are surely merging with some biographical moments.

All this is surely not least about different perspectives, different impressions and expressions alike. Things may look very clear if looked at in detail – but taking another perspective, a more distant view, they may emerge as something entirely different, something that is miraculously beautiful, magic.

Unfortunately such change is only optional – the changed perspective may also show something that is frightening, odious though it may also be that more distant views opens occasionally a door of some kind of social-romanticism.

The reality, its close investigation shows immediately another picture: niceties turn into a rather harsh reality for those who have to face it as matter of their everyday’s life, as condition under which they live … – I will return later to the point of conditions, just keep in mind that I mentioned the term already.

Johann Wolfgang von Goethe, in his piece on Wilhelm Meister’s Apprenticeship may give us some guidance, saying:

The fabric of our life is formed of necessity and chance; the reason of man takes its station between them, and may rule them both: it treats the necessary as the groundwork of its being; the accidental it can direct and guide and employ for its own purposes; and only while this principle of reason stands firm and inexpugnable, does man deserve to be named the god of this lower world.

Johann Wolfgang von Goethe (1795/96), Lehrjahre I,17

EUrope and Social Policy

Now, moving – what did this include?

One aspect has to do with moving from at the time the rich EUropean centre to the poor EUropean periphery. At the apparently clear borders.

However, actually the lack of clarity brought me to Ireland – a project that started from looking at begging, and the initial topic emerging to defining street level economic activity: my students still have to suffer a little bit from this today.

But over time, this moving between worlds had also been a move between different disciplines, subject areas of social science, spanning between sociology, law and economics – mind, I do not speak of social policy.

It had been a long way – and although I maintained the commitment to combating poverty, my orientation shifted in several respects. For instance my commitment shifted from working within Ireland towards activities outside of Ireland, first ‘in Europe’.

You may allow one remark – a little personal memory of which I am a little bit fond of. It is concerned with a speech I gave in the European parliament – and I am not sure if I knew at the time exactly what I had been doing. But that is always my problem when I use slide shows. The special meeting in the building that should be the palace of EUropean democracy had been employed by quality and accessibility of services of general interest. It had been as if I had been quasi ridden by a demon – starting the presentation with a slide showing a reasonably young lady.

I would love to talk more about it, the young lady Europe, abducted by Zeus – abducted and apparently over all the years having forgotten her oppression, being tamed, domesticated by the divine bull, and now carrying herself the ring, not aiming on taming the beast but using it as device for self-discipline.

The Positive about and EUrope

Leaving Europe later, I mean: working in the vicinity of the EU-institutions, with and against them, had not been an immediate consequence – actually after a first little shock reaction part of what I said had been well recognised, my scepticism shared. Anyway I changed the field and orientation of activities, probably because at the end I had been hurt by the successors of Zeus and Europa, the daughter of Agenor.

To be honest, with turning away from Europe I am probably more European than I had been before, namely by valuing the European social model (I will name some of the ambiguity going hand in hand with this appreciation throughout the following). This valuation is not so much based on its supposed European values. It is not any celebration of an illusionist renaissance of the eudemian ethics as it is usually considered as Greek tradition (don’t get me wrong – I am full supporter of today’s fight for the Greek values of solidarity and fraternity amongst those who need and deserve it); my general appreciation is more about another root of European values:

I am talking about the Roman tradition, the Leges Duodecim Tabularum – the twelve tables as foundation of Roman law and as such the origin of the modern legal system of the Western democracies.

But of course, this poses immediately some very radical question: Positive law against negative developments, answering something that is considered to be fundamentally negative? Fighting poverty?

As much as there is immediately a question mark showing up on this admittedly attempted playful formulation of a very serious and complex issue, there must be another question mark showing up when it comes to ‘indicators’.

As much as Plato is known – and misunderstood – for his rather special reflections on love he should be also known for his view on figures. In his opinion figures had been real: for instance in a row of four figures, starting with 1, the figure 3 had been as real as the third wheel of a four-wheel drive even if you do not full see it.

And such platonic love of figures is frequently also applied to indicators: though being at first technically nothing else than a row of figures, they are suggested as reflection of a row of life situations, a consideration of complex pictures of life.

Social Policy as Part of the Critique of Political Economy

Understanding is only possible if we really look at such complex picture of life – and we should not be afraid to understand this as a fundamentally economic issue. As Frederick Engels put it in his work on the Origins of the Family, Private Property and the State:

According to the materialistic conception, the determining factor in history is, in the final instance, the production and reproduction of the immediate essentials of life. This, again, is of a twofold character. On the one side, the production of the means of existence, of articles of food and clothing, dwellings, and of the tools necessary for that production; on the other side, the production of human beings themselves, the propagation of the species. The social organization under which the people of a particular historical epoch and a particular country live is determined by both kinds of production: by the stage of development of labor on the one hand and of the family on the other.

This means production. But what does this mean when we talk about production everyday’s life? Life and it’s production occurs under certain conditions: the mode of production. Last week or so I talked to a friend in Budapest – obsessed by her engagement fighting unemployment. We met after she attended a little workshop on this topic. And she mentioned a little bit derogative – pointing at me – ‘the colleagues from your university’, meaning the Corvinus University in Budapest. The derogative undertone had been due to the fact that Corvinus is a kind of élite cadre school for economists.

Indeed, there is a major problem – to cut a long story short, the current relationship between economics and social (policy) science is comparable with the marriage of god and the devil.

First a loving couple, inseparable, they are now still welded together but, like fire and water, hating each other: odi et amo.

Maintaining the Pyramid – Stabilising the Foundation

Usually we see this hate-love-relation as one of the availability of resources – and especially in times like ours there is a sadly-good reason for this.

  • Recently looking at the queues in Cork, people looking for jobs abroad, ready to emigrate – if you like positive thinking you can say something like ‘Well, about four years ago there had been similar queues in front of the dole.’
  • In Budapest people sleeping rough … – actually many not sleeping rough anymore because the Hungarian government criminalised homelessness, begging, being cygan and you know what;
  • Teachers in Greece, feeding pupils because they are collapsing at schools – and we are speaking of privileged kids as many don’t even make the way to the lessons – actually I heard last weekend the same being now true as well for Germany;
  • And of course finally we have to point on those rough pictures showing us blunt murder in the middle of the global village.

These are just four examples – arbitrary as they are linked to recent personal experiences. But systematically capturing four main legs on which our global society is resting:

  • internationalisation by way of migration – and although the EU proclaims freedom of movement as central, the freedom of movement of persons is still the most difficult to realize;
  • criminalisation of the poor …, or we may say those who a not swimming with the stream
  • the failure of statutory systems, depending on self-help and charity (don’t speak here simply of solidarity though this surely plays a role)
  • and finally global trade as global mistreatment – German language allows for the play with words: the German word for trade is Handel, the word for mistreatment is Mißhandlung.

Acknowledging that this happens under the auspices of the welfare state, we should feel encouraged to defend the achievements but nevertheless enter a fundamentally critical debate of this system at the very same time.

There is surely a simple answer to this: redistribution – and I would be the last contesting the need for immediate steps – they have to be immediate and also massive.

This is importantly a different approach than frequent calls for the caring welfare state. The welfare state is undeniably one of the most important achievements of the last 150 years, incidentally the German Reich celebrates this year the 150th anniversary. – Social insurance had been favoured by the then German minister of trade, Graf von Itzenplitz. Bismarck took only the merit with himself through the history books though in the book of his life we find a chapter in which he is initially a strong opponent of what he characterised later by saying

Das ist Staatssozialismus, das ist praktisches Christentum in gesetzlicher Betätigung.

This is state socialism, it is practiced Christendom in legalised action.

But acknowledging the importance of this system, we should not forget to approach this system in a more systematic way. At least the following core moments should be highlighted:

First, the welfare state is not simply a matter of Three Worlds of Capitalism; rather, we are concerned with one answer on the changing capitalist mode of production.

Second, this system is fundamentally misunderstood if we see it as being centrally characterised by values like solidarity. On the contrary, the central point of this system has to be seen in its un-solidaristic character – it is from here, from the Calvinist negativity that the need and space for positive law emerges – and this is without doubt the most important and constructive factor which characterises the German social state, the Nordic welfare societies of the early 20th century and the welfare state that developed as Keynes-Beveridigian pattern after WW II, hatched by the German big capital and it’s fascist clerks.

Third, all this is also a matter of re-distribution: to some extent from the rich to the poor, to a larger extent between the phases of personal life cycles; and for a relative small remainder a matter of redistribution between generations. – And, we should not forget this important aspect: as such it opens a contradiction within the legal system. This legal system is first and foremost a matter of securing the individual right for exploitation – and a kind of ‘social intervention’ that actually contradicts in one way or another the principle gist of positive law, thus positioning positive law against its own spirit.

Fourth, we can detect a kind of sheet anchor: any ‘social intervention’ maintained a fundamental pattern which actually closely linking positive law, the feudal system and modern capitalism: I am talking about the principle of individualisation: in feudal societies it is the distinction between deserving and non-deserving poor, in capitalist societies it is the monetarisation of benefits – if you delve a little bit into economics and the analysis of money as general form of money you will easily see the connection.[1]

Fifth, all this is also behind the major issue that characterises the welfare systems, namely bureaucratisation – here only mentioned as catchword, without issuing the complex connotations and consequences.

We may see in this light the capitalist welfare system as – admittedly laudable – instrument that allows people to perform in their jobs; an instrument that does not allow to discuss what people’s job actually is.

Outrage – Out of Range

But leaving the general moments aside, we should not only and not primarily look at people – at least not at individuals. This is actually a fundamental problem with what is called social policy. It allowed and even enforced – as academic discipline and as area of policy-making – very much an individualising and normalising approach. And it did so by claiming independence of economics and the economy.

Only two points will be made in the following.

(i) Colin Crouch emphasised in a recent interview:

Essentially economic knowledge is today in such a way recognised which I cannot comprehend. Especially as economics is dealing with matters on an intellectual level which is distant from real, social life. Economists are abstract in their thinking; they are more akin to mathematicians. But nevertheless the results of their research and their abstract theories are widely perceived in the political sphere. And they are also idolised by the decision makers in the financial sector. This divide between their theory and life is very strange, simply an absurdity of the recent decades.

Colin Crouch: Tatsächlich wird ökonomisches Wissen heute in einer Weise gewürdigt, die mir völlig unverständlich ist. Gerade weil sich Wirtschaftswissenschaften auf einer intellektuellen Ebene mit den Dingen befassen, die weit vom realen, vom sozialen Leben entfernt ist. Ökonomen sind sehr abstrakte Menschen; sie gleichen eher Mathematikern. Und dennoch finden ihre Forschungsergebnisse und ihre abstrakte Theorie großen Nachhall in der Politik. Und sie werden auch von den Entscheidern im Finanzsektor verehrt. Diese Kluft zwischen ihrer Theorie und dem Leben ist sehr merkwürdig, schlicht eine Absurdität der letzten Jahrzehnte.

But investigating this in a wider perspective, the following remains. By separation from economics, social policy paradoxically enforced what it continues to criticise: an economistic model which departed from moral philosophy, arrived at a solely growth oriented model that culminates in two perversions. The first perversion is the take-over by micro-economics which nowadays dominates in large parts the entire discipline. Even much of macro-economics is strongly influenced by a fundamentally individualist approach, actually applying micro-economic considerations on the level of a national economy (and on the global economic development also). The second perversion is both, foundation and consequence of this: an empiricist pragmatism which emerges already very early and finds its roots in Cartesian thinking. Franz Borkenau brings this on the point, saying that

[a]bsolute empiricism conforms to pure practicism, which completely denies the problematique of norms

This seems to be a never-ending story – as quick-motion captured by pointing on

* Descartes’statement

Ac proinde hæc cognitio, ego cogito, ergo sum, est omnium prima & certissima, quæ cuilibet ordine philosophanti occurrat.

i.e. the

proposition, I think, therefore I am, is the first and the most certain which presents itself to whoever conducts his thoughts in order

* being translated by Locke into the legal form as an ‘individualised social right’, namely the emphasis of private property as fundamental and all decisive

so that it cannot justly be denied him, when his pressing wants call for it: and therefore no man could ever have a just power over the life of another by right of property in land or possessions

* followed by Smith’ Invisible Hand

by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain; and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention

* being translated into a general rule of social science where

particular acts of individual persons, since these alone can be treated as agents in a course of subjectively understandable action

* and finding its latest expression in

  • the privatisation of an up to hitherto public sector
  • closely interrelated with a tightened individualised mindset – talking about the latter I do not think primarily about not helping granny across the street; or perhaps I think exactly about this. Provocatively – and everybody has to know that I actually am reasonably supportive where I can – the question can be posed this way: why do I have to help everybody across the street while society actually ceases to exist, exactly as doing what the Iron Lady stated with a normative notion.

I am well aware of the provocation, I am also well aware of the danger of conservative abuse. The problem is however a rather simple one: we live in societies that are hugely, fundamentally and on different levels characterised by contradictions.

One of these contradictions is captured by elitism on the one hand – estimation easily expressed in words and rarely in deeds, measured in awards, publications, income but not in ‘being’ – and performance orientation on the other hand, not least the requirements that have to be fulfilled by the deserving poor – sure, workfare is killing softly, not applying the swift stroke of warfare.

(ii) Now it seems to be easy to develop the counter argument: if societal figurations that are based on and thinking in figures lost their norms we just have to return to norms, i.e. from the vicious cycle of greed to the virtuous cycle of good deeds. Even one of the key-figures of number-juggling-economics supposedly stated the comfortingly that

[t]he day is not far off when the economic problem will take the back seat where it belongs, and the arena of the heart and the head will be occupied or reoccupied, by our real problems – the problems of life and of human relations, of creation and behavior and religion.

And again we face one of the many paradoxes: the critiques of the figures provide numerous studies with myriads of figures, permanently updated and permanently more shocking and … – I may quote a student from last year, who said: But we all know this, all this had been said so often but nothing seems to change. And I may quote a younger colleague who said the other day: I am 52 now and looking back, having worked in many different jobs and sometimes I am wondering if I achieved anything. The first time I met him though without knowing of even really encountering each other had been on the occasion of the first so-called National Poverty Conference in Austria. I had been on the panel with somebody from the EUC, and – cutting a ling story short – after her official presentation, and after I talked about the EUC’s program policy it had been her turn again: I am so grateful that you made these fundamentally critical remarks – I would have said the same but we as officials are not allowed to say things like that.

So we find a play with numbers against injustice and – I am convinced an honest indignation and good will to do better. And this is something we find on the right and on the left, and in the middle of the political spectrum and anyway going hand in hand with the spectre of the good doers. On The Spirit Level we are reminded Why Social Justice Matters. And as much I help granny across the street, I find such figures revealing, shocking and of course, Stéphane Hessel is right. It is

Time for Outrage!

But this social injustice is much more than revealing and shocking – earlier I said I pointed on global trade, saying that the ‘German language allows for the play with words: the German word for trade is Handel, the word for mistreatment is Mißhandlung.’

The Anti-Globalist Moment of Global Capitalism

Rather than maintaining the division between economic and social dimension we have to emphasise that there is no such thing as the economic or the social as separate sphere. The entire work of Karl Marx can be seen a critique of political economy, and that means as critique of the entire system of how people produce the social conditions under which they live. And this means that we have to look at the determination of the value of labour power as the core poverty question today. Although I will not be able to do this in its entirety, it is less complicated than it seems to be – many of my colleagues probably make it looking complicated in order to increase their own income and/or to disguise the power question, the interest of the one percent as it is frequently called today. Mentioned will be some core points – presented by some catchwords – and selected with some focus on those that highlight facts that are of crucial importance in the present context.

* We are living – so new, of course – in the era of global capitalism. Yes, and the only reason for mentioning it is the need to qualify it

  • the system is still to a large extent dominated by national interests – as easily seen by the current Euro-debates, showing that even a regional identity falls easily victim of nationalist interest (no, the recent referendum doesn’t show the opposite!)
  • the system is largely dominated by a relatively small number of enterprises: exactly (yes, numbers … ):

147 companies formed a ‘super entity’ within this, controlling 40 per cent of its  wealth. All own part or all of one another. Most are banks – the top 20 includes Barclays and Goldman Sachs. But the close connections mean that the network could be vulnerable to collapse.

The 1,318 transnational corporations that form the core of the globalised economy connections show partial ownership of one another, and the size of the circles corresponds to revenue. The companies ‘own’ through shares the majority of the ‘real’ economy

  • This means that this capitalism is at least in three respects not simply global capitalism.
    First, it is finance capitalism – this is a fundamentally different system than that capitalism that stands at the beginning of this epoch. A brief remark may be useful, referring to a presentation Joerg Huffschmidt gave in Vienna,

dealing with some basic economic problems, pointing on especially five issues. These are outlined in the following:

the divergence between finance capital and social product since 1980 – whereas the first multiplied by 16, the latter only by 5.5;

the international character of the financial assets, i.e. their origin in another country than that of its current location which is a trend that can be found in developed and developing countries alike;

the permanent redistribution of income from the bottom to the top from which a lack of purchasing power is the unavoidable consequence;

the tendency to privatise the pension funds with the consequence of huge amounts of capital being held in private finance schemes rather than money being paid to the pensioners in PAYG-schemes;

the liberalisation of capital movement which means that investment can be undertaken in any place which had been limited under the Bretton Woods system.

(see also Herrmann: The End of Social Services; Economisation and Managerialism; Bremen/Oxford: EHV: 34)

  • Second, it is controlled by a minority of capitalists and then again, a minority of this minority being ‘productive capitalists’.
    In his rather populist book 23 Things They Don’t Tell You About Capitalism, Ha-Joon Chang highlighted recently what had been frequently highlighted by serious economists: That the ‘developed capitalism’ actually lost its innovative power and on the other side many of those who are blamed for not having entrepreneurial skills would actually have the skills but would lack the conditions to implement them.
    Third – and this is the crucial aspect, we may say the Holy Spirit of the system – it is a capitalist system that in the course of the development of the previously named factors undermines the fundamental law of its own existence: generating value through production and with this the standard for determining the value of the labour force. We may refer to Marx famous statement that

At a certain stage of their development, the material productive forces of society come in conflict with the existing relations of production, or — what is but a legal expression for the same thing — with the property relations within which they have been at work hitherto. From forms of development of the productive forces these relations turn into their fetters.

  • At least two important analytical problems remain for political economy, namely to determine if and to which extent the current changes are changes of the productive forces or changes of reproductive and distributive forces. It may be possible to solve this by taking Marx’ understanding of production very serious; however, it may also be necessary to overcome the understanding of the solely productivist underpinning of the mode of production and to open with this consideration a path to ‘social production’ – we may find here something going into the direction envisaged in the paragraph of the German Ideology

In communist society, where nobody has one exclusive sphere of activity but each can become accomplished in any branch he wishes, society regulates the general production and thus makes it possible for me to do one thing today and another tomorrow, to hunt in the morning, fish in the afternoon, rear cattle in the evening, criticize after dinner, just as I have a mind, without ever becoming hunter, fisherman, shepherd or critic.

  • Giovanni Arrighi allows us to understand more of the current processes that systematically drives us into poverty – and the us means here: the supposed rich nations. The excess of money took various forms – being originally closely attached to productive processes, taking then the form of ‘pure financial speculation’. The latter process moves at some stage beyond it own limits and combines itself with the speculation against states. However, in the meantime financial assets reached such dimensions that speculation is now taking the form of speculation that brings states themselves to the frontline – now as objects of speculation. Arrighi, taking a long-term historical perspective, shows the rise and fall of major states and empires. The basic pattern follows the sequence accumulation, over-accumulation, investment of excess capital in other countries and there the unfolding of a capitalist-civilisation, with a subsequent new over-accumulation, searching for new investment opportunities abroad. Concrete Arrighi analyses the development from the Florentine to the Venetian, then the Genoese, followed by the Dutch and the English and finally reaching the peaking American capitalism. And in the more recent analysis on Adam Smith in Beijing he outlines the possible future development.
    Of course, this is not simply a matter of straightforward replacement but involves a complex structural change of the national/regional economies and the world economy.

* We find a feature that seems to be rather remarkable if looked at against the backdrop of the mainstream publicised arguments, namely the increasing relative share of wages going hand in hand with the decreasing statutory debt while social spending increased.

* This links to another important moment: We are not talking about the lack of money but about the search for new profitable investment opportunities. We can follow a rise of capital since a long time and equally remarkable is the growth of financial assets. In particular the latter means that over the years we see actually an increase on excess money.
The volume of finance transactions is currently about 70 times the amount of the entire world’s social product, about 20 years ago this amounted to about 15 %. The following table may give you an impression.
Part of this is the already mentioned speculation against states.
I currently hope to be able to elaborate together with Marica Frangakis from the Nicos Poulantzas Institute in Athens a brief analysis, of which the gist can be presented as follows from a first outline I wrote:

Talking about re-distribution, there is something that is in my opinion one area which is largely lacking consideration. We find obviously on a large scale a price-reduction of the commodity of labour power. I think it is hugely important to understand this as complex issue.

Probably one can tentatively look at eh following outline of the problem:

  • production is in general highly socialised
  • by outsourcing part of it (small and family business, precarious positions, the ‘voluntary work for google’) is re-privatised
  • part of it is then also redefined as public cost:
  • + direct transfer from the corporations
  • + as “social spending”
  • which translates into a pool for private investment/financialisation.

* With this we come to a major point in the economic analysis – and it will soon be clear that ‘economic’ development really means socio- and also political-economic development. A quick look at this graph may give way to some insight – a simplification within the limits of the allowed.

Usually, what Kondratiev called bol’shie tsiklys, which has to be translated with ‘major cycles’, is known as Kondratiev waves, long waves or long economic cycle. It is a rather simple and in many respects actually questionable economic model. But leaving the problems with the model aside, it can help us to get an understanding of the battlefield when we are looking at poverty. I leave providing empirical evidence aside – and indeed it is not about numbers. We can highlight the following major issues of the development:

  • We are speaking about economic growth but now it has to be qualified as matter of growth of the ‘productivist sectors’, going qualitatively beyond simple numeric growth of an abstract national product.
  • This is on the one hand carried by entrepreneurial individuals and groups
  • on the other hand it offers investment opportunities for excess money (namely over-accumulated capital) – in some way we may speak of a repeated original or better, with David Harvey: accumulation by dispossession – or even better (with me) as accumulation by appropriation.
  • Speaking of economic growth we have to observe that this does not translate smoothly into any kind of wealth. On the contrary, in some kind we find the opposite: finance capital being taken out of the sphere of circulation and speculation, risky investment ending in several cases with ‘bankruptcy-start-ups’, … but not least: the risk in many cases ‘outsourced’: from the investor to the workforce. In short and simplified it means that take-off phases are very much characterised by a specific pattern of pauperisation, taking n particular two forms: precarisation and pressure on wages, both reinforcing each other;
  • this is accompanied – and made possible – by a reduction of the cost of the labour force – a complex issue, ranging from direct pressure on wages, direct subsidies received by investors from the state, taxation, state investment in infrastructure including bureaucracy and security, redistribution within and between the capitalist classes/groups, including the thrift shops/discounters and charitabilisation.
  • This is in its own respect a factor which at least temporarily opens new fields of investment
  • as consequence we see increasingly that poverty has many manifestations.
  • Change of life styles is another major point in question. Looking at the row of path-breaking technological developments as they are highlighted as characterising the major cycles, can easily show this. All those inventions: steam engine, railway steel, electrical engineering/chemistry, petrochemicals/automobiles, information technology did have a major impact on the way of life – and this is true for all levels and walks of life. We could not even imagine a life without several items that are based on these inventions – and the attentive reader of Karl Marx first volume of Capital will easily recall the mocking, and in Part III of Frederick Engels’ Anti-Duehring, the author cynically asks Where did he get the sword? giving himself the answer: Even on the imaginary islands of the Robinson Crusoe epic, swords have not, up to now, been known to grow on trees, … – In short: there is no such thing as life without and outside of society.
    But having stated this, we are facing a paradox: as much as socialisation is increasing: the dependence on society, this means at the same time that this socialisation itself allows increasing independence. We are dealing with a complex relationality, exceptionally well captured by Norbert Elias. He allows us to understand why Friedrich von Schiller states (after he looked with disappointment at the French Revolution)

Man only plays when in the full meaning of the word he is a man, and he is only completely a man when he plays.

One fact is of special interest – actually justifying some of the traditional social policy orientation: the suggestion that social policy is distinct from the economy. Today the determination of the value of labour is to some extent again taken outside of the economic framework. Managers and enterprises respectively play outside of the pitch, nevertheless being in many cases allowed to claim the merit. Stories like those of the Ex-Aldi-manager Andreas Straub are not rare, corporate charitability (for instance part of the soup-kitchens) is another aspect and not least the fact of wages under the level needed to secure subsistence. And it is striking that this is a picture that applies not least to those nations that are usually considered to be the leading industrial powers, the richest nations.

What can and should be said is: the patterns of poverty today are not least different in the structural pattern. We may lament, looking at the increasing number of people living in poverty, we may commiserate the poor – and of course we are looking and we have to look for ways to help the people living in poverty – and we have to remember: all this is not least a matter of bringing together the social and the individual and also the subjective and the objective. Is there anything on this world that can better visualise this truly complex relationality than money?

Social Quality – A Proposal for a New Orientation

So, obviously guidance is needed

We are asked to look forward and also to look to the sides. And furthermore we are asked to maintain Albert Einstein’s insight, namely that

[t]he pure form of insanity is to maintain things as they are and nevertheless to hope that something changes.

Actually, what the wise man said is not less known amongst ordinary people and even by ordinary walls are telling us

All said: This doesn’t work.

Then somebody arrived

who didn’t know this –

and simply did it.

(graffiti)

Getting serious now, a first fundamental point I want to make – and of course it is a little bit a provocation to say this on this occasion – is that we should not primarily look at poverty. It had been done for many times and there is obviously no light at the end of the tunnel. Some flickering here and there in a surrounding that remains caught within the limitations of a tube. Actually we may get the impression that things are getting worse, that problem zones shifted to previously unknown areas – but major changes are not is sight. Tony Atkinson, on the occasion of a presentation he gave at UCC, presented an interesting development. We find on the global level some improvement of the material living conditions in the so-called developing countries, i.e. the living standard improving in countries as especially the BRIC (Brazil, Russia, India, China) but also in Bolivia or Venezuela; however, this development is complemented by a relative decrease of living standards in the so-called developed world. In other words, we find a U-turn which can be summarised by an increasing divergence in an international perspective: Rather than rich countries standing against poor countries, we find increasingly the world’s rich against the world’s poor. – Caution is required as this is only part of the picture and the reality is still showing a mind-blowing division between rich and poor nations. And importantly we find that poverty – without being overcome – is reasonably well under control in those countries where policies are not targeted but where targeting is part of a social policy for all and links into the firm establishment of ‘general social responsibility’ taken up by the state.

Second, at the centre stage stands the definition of the social, understood as

outcome of the interaction between people (constituted as actors) and their constructed and natural environment. Its subject matter refers to people’s interrelated productive and reproductive relationships. In other words, the constitutive interdependency between processes of self-realisation and processes governing the formation of collective identities is a condition for the social and its progress or decline.

This will be taken up again at a later stage. Here is only important to become aware of a broad understanding to emphasise that we should refrain from referring to a general normative concept, based on claimed general values, abstract evidence and assumed commonalities. The social is something that has to be clearly analysed, of which the different facets have to be determined not as part of a primarily normative system but as part of a complex system. We are dealing with the social as noun, thus allowing us to understand the substance rather than assuming it. Also important is the constitutive aspect that is eleentary part of the entire setting. Neglecting this important difference is also a key issue behind the permanent confusion in social policy. We hear of anti-social behaviour, we learn about claims for a new social contract, we are confronted with enterprises claiming corporate social responsibility and …, and we hear our students saying But we all know this, all this had been said so often but nothing seems to change.

Indeed, in some respect it is difficult to decide where the following sentence comes from:

Ut solis naturalibus (cupiditatibus) necessariisque adhaerentes, eas, quae nec naturales sunt, net necessariae, negligamus.

Is it from some more recent moral philosophy as promoted by Martha Nussbaum or the personally highly esteemed Amartya Sen; is it a translated sentence from the report on the on the Measurement of Economic Performance and Social Progress; is it from an alternative, green-economy claim or is it simply what the original language in which had been originally written suggests: a claim put forward a long time ago by an idealist searching for and preaching a good life. – Indeed, the latter applies: it is taken from the works of Pierre Gassendi, an idealist French philosopher, living between 1592 and 1655. At the core, Gassendi pleads for modesty, for a life being guided by ‘natural needs’.

Third, a major problem is the obsession with quantification. This goes much beyond the celebration of everything that can be expressed in figures. The major problem goes far deeper – and it is useful to look at least briefly at the historical background. Quantification emerges as major issue in science – and this means in today’s terms: natural and social science – at a specific point in time. With Franz Borkenau we can point on three principles:

  1. The rules of production in the period of manufacturing are very much based on the quantification and the quantitative comparison which is used in the form of equivalents. – This is not only a matter of market exchange but also a matter of the process of production itself, i.e. the technical side of manufacturing.
  2. Especially emerging in connection with the completion of individualisation, the principle of equivalence is applied in general, going far beyond the array of production and exchange.
  3. With this a final aim is an ‘all-rational system’, a general rationality that aims on justifying the capitalist rationality by suggesting the categories of formal law and exchange of equivalents as general rules of the world order.

Otfried Höffe elaborates on this in the work on Kant’s Critique of Pure Reason, highlighting that

[t]he basic content of the first principle, taken with that of the second, presents mathematisation as a transcendental law of nature, or, more briefly put, as transcendental mathematisation.

Höffe continues by highlighting that mathematisation is in Kant’s view also a matter that has to be applied on intuitions, namely

[a]ll intuitions, as matter of specific spatio-temporal extension, necessarily possess a quantitative character as extensive magnitudes.

And

[h]e grounds the process of mathematisation in the essence of the object: insofar as nature consists in intuitively given, and thus in spatio-temporally extended, data, then objectivity is necessarily bound to quantity, and quantity in turn is bound to extensive magnitudes. Every objective intuition is therefore a case of ‘applied’ mathematics.

This seems to be far-fetched – but we can easily draw from here a line to later developments in social science: the positivism as proclaimed by August Comte but also to some extent the Marxist claim that society could finally be broken down to mathematical formulas.

Fourth, evidence is a main issue in today’s debates in social science – for instance the European Commission highlighted this in the Communication The European Platform against Poverty and Social Exclusion: A European framework for social and territorial cohesion. There is surely good reason to request informed reasoning behind any decisions, and of course the planning of decisions. It seems to be taken without question that the strongest evidence is given by numbers, especially numbers understood in a Platonic way as something real. But the flipside of looking for evidence should not be underestimated. Evidence, in simple translation, suggests a fact that cannot be challenged.

One of the major problems with can be seen in the underlying reference to a set of norms that are not questioned and also usually not questionable – going back to the Latin root of ex – videntem this is getting especially obvious: taking visibility as proof is logically limited to affirmation.

Fifth, taking the first definition of evidence as provided in the Merriam-Webster dictionary: evidence as outward sign, i.e. indicator, we face a problem with this definition. The Latin root of the term indictor is in this case actually not directing us to evidence but to something entirely different, we may even say that we arrive at the opposite. In – dicare is about valuing something, speaking about something and a proclamation. (a) That a proclamation has to be made means first and foremost that the proclaimed matter is not self-evident – otherwise it would not be necessary to speak about it. (b) It is reasonable to see such indication as something that is not fixed, finally determined and self-contained – rather it is an indication by way of opening a field for detailed exploration, and also lines which have to explored for finding the way across the field. As stated in a forthcoming article, indicators

are not measurement instruments sui generis. Rather they are instruments for developing an understanding of complex issues and their trends.  As such they need to be guided by a sound conceptual reflection of what they are looking for. For instance, we need work on securing the basic means for existence for human society by  indicator studies, and to make actions on both aspects of reserving natural resources and self-restriction on our consumptional behaviours.

Sixth, what had been said with respect to indicators is of course also part of a political debate which takes place in various realms. To explore this further I start with a quote from a document we are elaborating from the EFSQ for the Rio+20 Earth Summit

Generating values is not seen as matter of what people are doing, as core of the productive process itself and as such linked to use values. On the contrary, such argument proposes that generating values is equal to generating money. A fundamental consequence of their proposal of pragmatic ‘synthetic indicators’ is that they are not based in processes which determine the impossibility or possibility of sustainable urban development. Sustainable urban development as a condition of development toward sustainability is not the subject of their analysis. And this is the case with nearly all recent studies about sustainability. They remain two worlds apart. Their pragmatic based indicators cannot function as mediators between both worlds, because they are neither theoretically nor methodologically related to both worlds. For relevant politics and policies to address the most important challenge of human mankind this point is highly crucial and should be addressed for making progress.

The point I want to make with this reflection is not linked to sustainability and urban development – although these are important issues too. At this stage, the important point is the processuality – and with this relationality. Though on a seemingly rather abstract level, we are now dealing with some more technical issues of the Social Quality Approach. Of course, this is in very general terms widely recognised – we find in poverty analysis since at least about 20 years the acknowledgement of time series analysis, looking at how poverty develops during the life course of people. This is surely an important development, not least allowing to see that people living in poverty may move temporarily above a suggested threshold, but obviously remaining unable to settle properly in positions that allow a permanent change of the situation. And of course, it is one of the truisms at least for Sunday-sermons that the homo sapiens is a zoon politicon – actually it is an interesting exercise to look at the fundamentally individualist notion of pure Aristotelian thinking.

Simplifying tentatively processuality and relationality we can refer to the

constitutive interdependency is created by the outcomes of the inter- play between two basic tensions.

This is then explained in the following:

The horizontal axis mirrors the tension between systems, institutions and organisations on the one side, and the lifeworld of communities, families, networks and groups on the other. The vertical axis mirrors the tension between biographical life courses and societal developments of collective identities (the open ones and the closed ones).

Important is that this is only a framework within which the assessment moves – and talking about the assessment means to look into two directions: the one is the analytical perspective and the other is about the development of political strategies. And as much as technical issues have to be considered, we are at the end dealing with political issues, i.e. not least: issues that are based in interests and lead to conflicts. Second, it is important to acknowledge that this requires searching for the qualitative moments, i.e. the qualitative aspects that are actually filling this space. However, saying ‘filling this space’ does not mean that we are dealing with a closed space. Being defined by two tensions, the framework is itself characterised by shifting borders.

Seventh, right at the beginning I said that ‘the reality, its close investigation shows immediately another picture: niceties turn into a rather harsh reality for those who have to face it as matter of their everyday’s life, as condition under which they live … – as promised I am returning to this point, namely the question of conditions. We arrive subsequently at the core set of factors that are of immediate relevance for policy making, namely at what we call conditional factors. These are

  • Socio-economic security: the ownership of the necessary material and other resources;
  • Social cohesion: the existence of the necessary collective accepted values and norms;
  • Social inclusion: the accessibility of the institutional and structural context; and
  • Social empowerment: the extent to which social structures enhance the capability to interact in daily life.

Eighth, though not entirely limited to it, conditions are only one side of the outlined perspective. Conditions as such are only marking potentials – not less but not more. This is has been frequently addressed. Of course, an interesting debate is opening from here on the entire range of different thoughts on freedom. Leaving this aside, we may look for instance at August Comte. In his case, the subject deserves special attention as it is the rejection of an autonomous subject that is employing his thinking. But nevertheless he elaborates the development as reflexive process, society creating itself by reference to its own conditions and developing these further. Taking another position, many will of course remember immediately Karl Marx’ analysis of the class relationships and the famous point he made in the work on Poverty of Philosophy with respect of the development of the class-struggle. There he wrote:

Economic conditions had first transformed the mass of the people of the country into workers. The combination of capital has created for this mass a common situation, common interests. This mass is thus already a class as against capital, but not yet for itself. In the struggle, of which we have noted only a few phases, this mass becomes united, and constitutes itself as a class for itself. The interests it defends become class interests. But the struggle of class against class is a political struggle.

And another interesting reference can be made to Ernst Bloch who discusses the perspective on potentiality in his work on The Principle of Hope. He points on four dimensions, namely (i) the formally possible – what is possible according to its logical structure; (ii) the objectively possible – possible being based on assumptions on the ground of epistemologically based knowledge; (iii) the objectively possible – possible as it follows from the options inherently given by the object; (iv) and the objectively real possible – possible by following the latency and tendency which is inherent in its elementary form.

So we have to look at the driving forces, which are in the Social Quality Approach mainly presented as constitutional factors, outlined in the following.

  • personal (human) security: the existence of rights and acceptable rules;
  • social recognition: the experience of respect by others;
  • social responsiveness: the openness of groups, communities and systems; and
  • personal (human) capacity: the possibilities to relate to other people.

Ninth, if we summarise the before mentioned as structure and process, we may look at a third dimension which can be seen as matter of guidance, the orientations given as normative factors. Mind, in the social quality perspective these are not the point of departure. Rather, it is a set that emerges from the interaction itself. One may say, in any historically given point in time they are evident – and as such they are also contested. This contest is not least a matter of the oscillation between the different horizons of possibilities/opportunities as they had been mentioned before with reference to Ernst Bloch. The normative factors are as follows:

  • Social justice as a specific characteristic of social relations based on the existing nature of socio-economic security as an outcome of interventions by social actors reflecting their personal (human) security.
  • Solidarity as a specific characteristic of social relations based on the existing nature of social cohesion as an outcome of interventions by social actors, reflecting social recognition.
  • Equal value as a specific characteristic of social relations based on the existing nature of social inclusion as an outcome of interventions by social actors underpinned by social responsiveness.
  • Human dignity as a specific characteristic of social relations based on the existing nature of social empowerment as an outcome of interventions by social actors with personal (human) capacity.

Tenth, we come to most important point – and for fully acknowledging this we have to remember briefly what had been said earlier, namely under III and IV of this section. The orientation on evidence had been rejected for two reasons: quantification is not simply about number-juggling – more important is a specific ideology or mindset: calculability (i) being reduced on quantifiable schemes and (ii) caught in the cage of affirmation by searching for evidence. This is not a rejection of indicator research; and it is definitely not suggesting to take an approach of any subjective assessment. But as said, indicators

are not measurement instruments sui generis. Rather they are instruments for developing an understanding of complex issues and their trends.

This means that the data we re looking at are very much those that are commonly used. It may be worth in a side-remark that there had been actually no major changes when we look back over the last decades: (i) the topics and even more so the indicators did by and large not change, (ii) the methods of calculations are increasingly complicated, (iii) the dissatisfaction is equally growing and (iv) recourse is made to subjective, normative approaches which raise more questions than offering answers. Taking the social serious, we need to look at the complex relationship not only of people but of people as actors and also the complex interactions. So far we have four elements for the social quality approach:

  • the to basic tensions
  • the conditional factors
  • the constitutional factors
  • the normative factors.

The major challenge is to bring these together. Looking at the actual meaning of the tree sets:

  • conditional factors being a matter of opportunities and contingencies – and their limitations
  • constitutional factors as processes and
  • normative factors as orientation

We have some debate now also in the EFSQ, not least in the collaboration with Asian colleagues, if these factors are actually fundamentally different, if compared with the traditional approaches. So we may try to articulate the more or less fundamental differences. Niklas Luhmann talked about background noise, that is not directly interfering, determining societal development but nevertheless being decisive as a factor, supporting or even evoking certain developments or hindering, possibly blocking other developments. May be that the Social Quality Approach is something like this: a background noise, a challenge that we have to keep permanently in mind, not least as a standard which we may never reach but which we are striving for and which as such influences our research, politics and policies.

Leaving aside what it actually means to bring the three sets of factors together, it is more important to point on the four perspectives for which the approach is important:

  1. it is an academic tool,
  2. it is about politics
  3. it is about policy
  4. it is about a polity

Eleventh, finally a few concrete issues shall conclude the contribution – examples rather than an attempt to offer a comprehensive picture.

I.

Social Policy – Economic Policy – Rights – Care. These four terms are opening a field going much beyond the four topics in the strict sense. Stretching this to an ultimate border we can say that the historical perspective on the rise and fall of empires is closely related to the their integration and dissolution.

Development seems to be intrinsically linked to – or even depending on – a process of dissolution – we find it discussed under major catchwords as division of labour, social divisions, specialisation, individualisation and the like. We could leave it there, trusting in the self-referential survival of the new units – it is important to see that such dissolution actually means establishment of new, distinct units. But as we are still dealing with human beings as social beings and as we are still living in societies, we have to think about the framing. Indeed, we find frequent new inventions, aiming at integration and integrity. Social security, social insurance, Folkhemmet, welfare state, social protection. And of course, we should not forget the brute fascist Volksgemeinschaft, the gated communities, Etzioni’s Responsive Communitarian movement … and a recent idea of these ‘good societies’ we find the term ‘social investment systems’ – a friend in Brussels told me yesterday that this is now increasingly replacing the term ‘social protection systems’. It would be easy to reject this new yarn. And on some level I am willing to contest such notion. It is the fundamental problem of a society that is caught in a linear concept of hierarchical thinking where people are celebrated on occasions if it suits, and where they are victim so of mobbing if it suits better – unfortunately we find this pattern on all ways of life, and we find it without that this would be a matter of degrading intentions.

However, aren’t we in fact all standing helplessly in front of a wall of evidences – thus overlooking the evidence of the wall? In any case, without having a solution at hand, there is for social policy at least one thing more than obvious: If we reduce the economic dimension of social policy on the dimension of ‘resources’ and the ‘productivity of workforce’, we will fall short and we will be left helpless: at best a ‘caring society’ without rights.

Sure, only few will refuse to provide charitable help, care where care is needed, protect weak people who are left unprotected – and we may ask if it is at the end a bad thing that only few people thinking in the individual about the unintended sight effect: social policy establishing a cage that protects the weak and the culprits alike – and if donations are Bono – ops, I mean buono, i.e. high enough. As much as I believe in the honesty behind a lot of the good-doing, talk about re-distribution, we have to be sincere in what we mean. Here we have to be determined to mean production. Otherwise we are facing a structural problem – and this is again linked to equivalence principle and the claim of exchangeability. In short, I am ready to enter a serious dispute with Lieve Fransen – and serious would not mean to contest his good will but to show in detail where his evidence is evidently a political-economic trap.

We may speak of a monopolisation paradox – the limitation of rationality on evidences which make it factually impossible to ‘be wrong’.

II.

Without going too much into detail at least the following is remarkable when we take a reasonably wide perspective we can say (there is good reason for taking an even wider perspective, and also to go more into details): the EU is since a long time monitoring the development, setting up new programs and frameworks and is by and large hiding with a kind of hyper-activity a standstill. We still find difficulties when it comes to a truly democratic EUropean policy making – and I claim to say this as somebody who worked up to recently for a little bit more than 20 years in more or less close proximity of the European institutions. Don’t get me wrong: I do not think that there simple solutions. And saying this means that I do not believe in a replication of patterns that may have worked on national levels on the European level. Nor do I believe in governance as it had been initially proposed by Jerome Vignon, at the time developing the proposal in his position within the Forward Study Unit. I am personally grateful for Vignon’s contribution – and I mean personally also in terms of the readiness to consult, to respect other positions and positions of others and not least his readiness to stand upright with his opinion against others. However, looking at governance, a major flaw has to be seen in the following: the way forward had been too closely caught in early if not pre-capitalist notions. Voluntarism, social responsibility, general interest and the acceptance of equality as generally accepted value cannot be taken as given.

On the contrary, latest since the late 19th century we see that capitalist growth is leading to inequality and conflicts. Though Lenin is probably the one who is best known for pointing on the conflictual constellation of imperialism – and thus many while the argument out – a critical discussion has a much broader background.

Already Adam Smith is very critical about it, stating

A great empire has been established for the sole purpose of raising up a nation of customers who should be obliged to buy from the shops of our different producers all the goods with which these could supply them. For the sake of that little enhancement of price which this monopoly might afford our producers, the home-consumers have been burdened with the whole expence of maintaining and defending that empire. For this purpose, and for this purpose only … a new debt of more than a hundred and seventy millions has been contracted over and above all that had been expended for the same purpose in former wars. The interest of this debt alone is not only greater than the whole extraordinary profit which it ever could be pretended was made by the monopoly of the colony trade, but than the whole value of that trade …

Leaving the more theoretical debate aside, we can also look at the recent developments – and here in particular the Irish case which delivers the pattern which had been repeated in many other countries like for instance my current country of residence, striving for a tiger model: economic growth meant at the very same time increasing economic inequality. But the especially important issues on the political level cannot be expressed in any figures – at least the figures are only expressing a small part. The real political dangers are

  • the loss of the public,
  • the loss of the general interest
  • by its translation into quantifiable indivdualist relations, based on the principles of exchange and equivalence
  • and finally the fostering of administratisation or managerialsation of the now calculable space.

To make this clear: the red-tape is not cause but consequence of a social mind-set that lost its substance to an invisible hand.

Of course, this is not a recent issue – and a differentiated analysis is required. However, the strict orientation on growth policies is highly problematic.

We can look against this background at the Commission’s Annual Growth Survey, issues in November 2011. There we read that

[f]or 2012, the Commission considers that efforts at national and EU level should concentrate on the following five priorities:

  • pursuing differentiated, growth-friendly fiscal consolidation;
  • restoring normal lending to the economy;
  • promoting growth and competitiveness;
  • tackling unemployment and the social consequences of the crisis;
  • modernising public administration

As we see in the Flash Eurobarometer 338, issued in April 2012 the meaning of these policies, i.e. social impact of the crisis: public perceptions in the European Union the results are sobering.

It is important to see the connection – to be exact: the disconnection. A growth strategy is at the centre stage of a European Union with a population of about 502,000,000 people – it is a strategy that is seen as evident condition for overcoming poverty, it is a strategy that aims on increasing both: private production and private consumption and that is factually serving a minority, contributes to further personal and regional concentration of wealth, that drives entire countries into disastrous situations, that allows presidents with faked PhDs and psychotic prime-ministers to govern and finally creates regional despotism and nurtures neo-fascism – the perspective of a harsh reality you may easily overlook when travelling as touristy, sipping your Tokajer, eat a delicious platter of French cheeses, smell the Greek coffee or enjoy a beer, brewed according to strict German purity law.

Both, arguments brought forward on grounds of supposedly evident values and also proposals for simple institutionalist changes are likely to fail. The problem is the tension of equality as political and economic category – and the challenge is to seriously discuss again political economy rather than limiting the debate on economics and political-social technology.

One of the fundamental problems is that democracy is now itself increasingly seen as technical issue: bound to the principle of national sovereignty, i.e. also: the sovereignty of the nation state; and bound to the arithmetic formula of equivalence exchange.

We may speak of an equality paradox.

III.

A fundamental problem has to be seen in the very limitation of our thinking as it had been outlined under the major headings: quantification/mathematisation, equivalence principle and claim of exchangeability, individualisation and finally evidence.

I am not entirely sure if it is possible to determine any original sin, any prelapsarian state. Fact is that a mind-set, caught by these dimensions has extremely limited capacities to deal with multiple contradictions. I did not change mind – perhaps even on the contrary. But that society is marked by an antagonistic class contradiction is only side. The other is to recognise the development of the productive forces as drive behind development. And this means to recognise also the contradictions, tensions and fractures. I want to highlight only four.

1) There are lost securities on one side – the ‘social security system’ on the one side, surely progress but not less sure a mechanism that had been intrinsically bound to the emergence of the capitalist system. To mechanically maintain social security systems means to maintain capitalism.

2) Retirement – and over the years a reduced pension eligibility age – are surely a huge relief. But where is the simple answer to the subsequent loss of social identity in a society that is strictly and in nearly all respects – even when it comes to defining old age pension – based in the idea of own ‘gainful employment’ in form of quantifiable and equivalent exchange?

3) Big society is again a big thing – and commenting on a recent publication by Armine Ishkanian an Simon Szreter, titled The Big Society Debate, Bill Jordan says that

There is nothing new about the notion of a Big Society.

I dare to disagree to some extent. I follow Bill to the point to which ‘civil society’ – in various forms and under different headings had been interpreted in highly problematic ways. However, I would like to problematise the statement in two regards. First, I think it overestimates the strategic diabolic intelligence – I see in the rulers more naïvety combined with obsession for power. Second, the understanding of civil society that is underlying David Cameron’s thinking is in multiple respects inconsiderate: Civil society today is not the same as it had been when it had been when it had been for instance table by Georg Friedrich Wilhelm Hegel or by Alexis de Tocqueville. And this has to be considered when we use – and also when we criticise – terms and concepts before we throw the baby out with the bath water.

Looking at this example, looking at others as for instance the recently published World Happiness Report or the Inclusive Wealth Report 2012 which will be launched in Rio we have to acknowledge good will (which actually is rather useless thing) and importantly the departmentalisation in our heads: the traps of quantification/mathematisation, equivalence principle and claim of exchangeability, individualisation and finally evidence.

4) A fundamental contradiction that is frequently overlooked is that human beings are social,[2] economic and historical beings and they are this as individuals in their own, very specific space-time. With this perspective we gain at least an understanding of the limitations – not least the limitations of thinking alternatives while taking the risk of transcending quantification/mathematisation, equivalence principle and claim of exchangeability, individualisation and finally evidence.

We may speak of a perpetuation paradox.

And the question will always be: But do we really have to start from here? And with this we arrive at a very fundamental challenge which this (hopefully anti-)poverty school has to take up: fighting against poverty and exclusion can only succeed if it is a fight for another society.

End as Beginning

Three quotes may stand at the end – beginning with Pablo Diego José Francisco de Paula Juan Nepomuceno María de los Remedios Cipriano de la Santísima Trinidad Ruiz y Picasso:

Each second we live is a new and unique moment of the universe, a moment that will never be again. And what do we teach our children? We teach them that two and two make four, and that Paris is the capital of France. When will we also teach them what they are? We should say to each of them: Do you know what you are? You are a marvel. You are unique. In all the years that have passed, there has never been another child like you. …. Yes, you are a marvel. And when you grow up, can you then harm another who is, like you, a marvel?

You must work, we must all work, to make the world worthy of its children.

(Picasso)

The second statement if taken from letters written by Johann Christoph Friedrich von Schiller – it had been already quoted earlier:

Man only plays when in the full meaning of the word he is a man, and he is only completely a man when he plays.

(Schiller)

Indeed,

It is not sufficient to know, one has to apply;

it is not sufficient to wish, one has to do!

(Goethe)


[1] A special section could be written on ambiguity of the question of women and the individualization of rights.

[2] If we refer to Aristotle we have to be careful as this there is a likely confusion between (understanding the) social and political.