Showing posts with label privatisation. Show all posts
Showing posts with label privatisation. Show all posts

Saturday, 27 December 2014

Why I respect Peter Hitchens.

Adversarial politics

Believe it or not, there are honourable conservative voices out there. By 'honourable', I really mean those few figures with integrity. You don't have to agree with someone to respect their point of view. This is easy to forget in a political discourse lacking worthy opponents of the Left.

The fulminating columnist Peter Hitchens is one such case of the honourable rightist. The particular strain of conservatism, to which he adheres, may be summarised as traditional, cultural or socio-moral conservatism. His targets include the Westminster consensus, not only the Labour Party, but the Conservative Party as well. He sees the country threatened from a left-wing cultural putsch against the vestiges of an organic social order. Yet it's clear that he is no friend of the current flavour of right-wing politics.

On an ABC panel with Dan Savage and Germaine Greer, Hitchens was asked what he thinks of Tony Abbott. He immediately laid into the Australian Prime Minister deeming him a 'fake conservative' for his neoliberal economic agenda, pseudo-moralism, and connections with Rupert Murdoch. He has dismissed UKIP as a 'dad's army party', unlike many of his associates in the right-wing press, seeing the party only as a means of annihilating the Conservative Party.

"I also yearn for a truly radical party," he once confessed to the BBC. In the same segment, Hitchens made clear what he really opposes: namely, the centre-ground of the Third Way and 'compassionate' Conservatism. He sees both forces as two sides of the same coin (and he's not wrong) routinely flipped every four or five years. In short, he wants to abolish the fakery of personality politics and return to adversarial politics.

When it comes to the economy Peter Hitchens has said that he is for a robustly social democratic model, which would include a safety-net and universal health-care. It would include what he describes as strong employment rights and social housing. He opposes the right to buy scheme which has wiped out so many council houses and inflated the housing market. On top of this, Hitchens has routinely criticised privatisation and the legacy of Thatcherism.

Years ago on Question Time, Peter Hitchens savaged Iain Duncan Smith and called for the renationalisation of the railways. It's not the only case either. "I think there was a case for nationalising coal, made in the 1920s and accepted by many people for non-dogmatic reasons," he wrote in his column in October 2012. "I have always believed that the electric power grid should be nationalised. I think it should be renationalised  as a prelude to an enormous programme of nuclear power station building, without which we face an appalling energy crisis within 20 years."

In a Chat Politics interview Peter Hitchens was asked whether or not he thought it would be possible to build a right-wing alternative to the Conservative Party. He responded "Who says it'll be right-wing?" Of course, this kind of response is symptomatic of the very view he takes of the prime oscillation of UK politics between Labour and Conservative. He often eschews the label of 'right-wing' for himself, preferring the title of Burkean conservative. It's evident that he sees the left-to-right spectrum as a defunct measure of politics and yet he never strays away from bashing what he calls 'the Left'.

"The left's real interests are moral, cultural, sexual and social," he insists in one of his columns. "They lead to a powerful state. This not because they actively set out to achieve one." Not surprisingly, the way he frames left-wing politics really comes from the position he takes on cultural and socio-moral issues. "It is because the left's ideas – by their nature – undermine conscience, self-restraint, deferred gratification, lifelong marriage and strong, indivisible families headed by authoritative fathers."

As a former Trotskyite, Peter Hitchens remains within the bootprint of twentieth century leftism, bemoaning the cultural revolution of the 1960s, yearning for a revival of the traditions and social norms it killed. He's wrong on almost all cultural and social issues, but he's right that the problem, for people like him, isn't just the Left - it's Thatcherism too. Fortunately, it is too late to turn back the clock on the progress achieved in our attitudes to sexuality, gender and race. The malaise of the reactionary press is really down to this harsh reality.

Tuesday, 2 September 2014

What buttons does Putin push?


The national psyche of any country may be made up by a complex web of associations in memory and myth running through history, culture and literature. It would be very easy to put down all of Russia's problems to its long history of authoritarian rule and chauvinism. However, we must remain aware that this is itself a construction of how the West would like to see itself - as standing out against the wretched backwardness of the East. This is a projection and we shouldn't fall into the convenience of old ideas in new conflicts. In fact, that's sort of the problem the Russians are having in the recrudescence of nationalism. I've covered this:

One of the first decisions undertaken by Putin after the 2000 election was to restore the Soviet National Anthem by Alexander Alexandrov. It was a symbolic break with the Yeltsin era. The anthem replaced the Patriotic Song of Mikhail Glinka that the Russian Federation had adopted in the wake of the dissolution of the USSR. Many in the West perceived this as an ominous sign of things to come. As the 1996 election was deemed to be the last hope for Russia’s Communists, the alternative to Yeltsin had always been framed as a throwback to the days of Stalin. 
The return of Alexandrov’s anthem seemed to confirm Putin was looking to recreate the old Soviet Union. This perception was widely shared, particularly by free market advocates, fearful that their revolution was coming to and end. Leading liberal Grigory Yavlinsky said, “We see this as a signal of where our society is heading, of what awaits us in the near future”. Yavlinsky was a proponent of the 500 Day Programme, first articulated in the late 1980s. It called for the mass-privatisation of state assets combined, with market reforms and the stripping away of regulations. All in 500 days. The programme was eventually implemented, in diluted form, under Yeltsin. 
What was lost on market liberals like Yavlinsky was that it wasn’t just about economics. The Soviet anthem has an equally significant nationalist side to it. After all it comes from Stalin’s Great Patriotic War, and supplanted the traditional socialist anthem the Internationale with its revolutionary patriotism. It was this side of the Russian campaign that Putin was tapping into, not a retreat back to the state capitalism of the Communist era.

The Russian nationalist narrative has a lot of sway and popular appeal because it holds factual ground. That isn't to say it is accurate of the full story. Pavel Stroilov recently produced an article exploring the popular claim in Russia that the West - principally, manifested in its expansion of NATO eastwards - reneged on its promises at the end of the Cold War. Stroilov put his own right-wing perspective on it and appears to be woefully uncritical of NATO and Western foreign policy. Even still, it is worth a read. You can read the rest of my article on Russian nationalism at Souciant.

Saturday, 16 August 2014

On the Khmer Rouge trial.


I've written about Cambodia and the period of Angkar rule (1975-79) in the past. So I felt it necessary to cover the recent verdicts at the trial of Khieu Samphan and Nuon Chea. It is an obscenity that the core of the leadership has gotten away with it all. Khieu Samphan may be the biggest prize here, but it would have been a great day to see Saloth Sar (a.k.a. "Pol Pot") in the dock. It would have been even better to have seen Henry Kissinger in the dock with him for his part in sanctioning the illegal bombing of Cambodia which precipitated the rise of the Khmer Rouge. Here's a snippet:

The Khmer Rouge got off easy. No act of genocide is as misunderstood as the murderous campaign that the Maoist revolutionaries undertook during the second half of the 1970s. Two million Cambodians were murdered in the space of four years. The scale of the killings, and the ruthlessness with which they were conducted, shocked the West, which was still struggling to get its head around the Holocaust, just three decades earlier.


The idea that an anti-colonial conflict, so soon afterwards, had turned so barbarous, was particularly difficult to digest, especially in the context of popular resentment against the war in Vietnam. The people, so to speak, had proven no better than the imperialists, first the French, and then the Americans, who had spent the better part of the post-war period trying to stamp out the threat of socialism in Southeast Asia, killing millions, themselves.

There are many inconvenient truths about the Khmer Rouge. Like the fact that Prince Sihanouk embraced Pol Pot as an ally, along with Ronald Reagan, and George HW Bush, against the Vietnamese forces which removed the Khmer Rouge in 1979. That the Western powers provided food and training as long as they were 'resisting' Vietnam's occupation. John Pilger and Peter Jennings have both covered this.

Saturday, 24 May 2014

Why Nana Didn't Vote UKIP.

"I'm the only politician keeping the flame of Thatcherism alive." - Nigel Farage

The night of Thursday 22nd of May I got a phone call from my nana. She told me, "I was going to vote UKIP, but then I read what they were for..." She referred to a spread in The Daily Mirror where the party's positions on issues other than immigration were presented. Farage was much less appealing as a Thatcherite, who wants the privatisation of the NHS, the abolition of maternity leave, sick pay, and redundancy pay. Tooth and nail libertarian ideas hardly appeal to a bread base of voters and for good reason. In the end my nana voted Labour, saying "I always used to vote Labour..." and adding "they used to be for the workers". That's the crux of the matter.

My nana was interested in voting for UKIP because she wants a referendum on EU membership and, in her own words, UKIP are "against asylum seekers". This is where the party appeals to a broad base of voters. Only on these grounds could an ex-banker and former Tory, like Farage, market himself as a man of the people. Relatives of mine have voted UKIP in the past out of opposition to the European Union and mass-immigration. But these are former Labour supporters. The media closes in on issues like immigration, benefits, and the EU, to steal away the core support for social democratic measures. It has been a successful campaign in many ways - there is widespread opposition to immigration and widespread support for benefit cuts - while failing in other ways - opposition to universal health-care remains insignificant.

How can people who have voted Labour all of their lives, and in the case of my relatives, even voted Green in the past, turn to a party of right-wing spivs. The extent to which UKIP has succeeded in stealing Labour voters is debatable, but it is the key to any long-term electoral strategy. It is not enough to compete with the Conservatives. Even though the raison d'etre of Faragisme is to force the Conservative leadership further rightwards. The current austerity isn't enough. The stealth privatisation of the NHS isn't enough. Anti-immigrant campaign vans aren't enough. Cuts to disability benefits aren't enough. The tax-cuts for the rich aren't enough either. It should be clear what these people are about.

The facts of UKIP's prejudices are not amazing to anyone on the liberal-Left. Never mind the core base of support for anti-immigrant policies. What does amaze people are the policies which Farage would implement if he had real power in this country. When asked by Norman Smith whether he would ringfence the NHS the UKIP leader said "No, I want to see us getting better value for money." Need I say anymore? Yet that wasn't plastered on every headline throughout the country. The media demands the debate on immigration because it can only move between two poles: liberal internationalism in one corner and populist nationalism in the other. It's convenient for a discourse which doesn't do serious politics and peddles easy answers to complex problems.

Sunday, 27 April 2014

Dumbing Down.


There was a good piece in The Guardian by Frank Furedi on the effects of Gove's reforms on the way philosophy is being taught in colleges and sixth forms across the country. As I fell for philosophy as an A-level student I can't help but take an interest in the substance of the reforms. From what Furedi writes these reforms are not a step forwards:
 
Tragically, the draft philosophy syllabus offers an intellectually inferior version of the old. Some of the most intellectually stimulating questions of the existing curriculum disappear, such as that on free will, as does political philosophy. A new compulsory philosophy of religion topic – which counts for 50% of the AS course – suggests a reorientation towards the teaching of RE.
What's most disturbing is that the text disappears, to be replaced by an online anthology of extracts. Why? According to the draft syllabus, to provide "greater clarity on the content so that teachers are clear about what they need to teach". The impulse to remove a teacher's capacity to make judgment calls threatens to turn what has been an exciting intellectual adventure into an exercise in box-ticking. In line with this pedagogical orientation, the assessments have been revised to cater for a more intellectually light curriculum.
The revised assessment appears relatively indifferent to the integrity of philosophical knowledge. The draft says the methods of assessment "focus clearly on the core skills of philosophy". The language of skills and instrumentalism dominates this syllabus. The draft responds to the question, "Why choose philosophy?" with the answer: because "students will develop and refine a range of transferable skills". Philosophy, which originally meant the love of wisdom and which many regard as a guide to life, is now rebranded as the bearer of transferable skills.
 
Of course, I'm not at all hostile to the teaching of philosophy of religion (or as a subject in itself), but I am suspicious of any attempt to depoliticise philosophy in this way. I would view moral philosophy as the vital component, with political philosophy as a continuation of ethics by other means. That's no reason to leave out the God question, of course, and there's no reason why they can't be taught alongside each other. Some would argue that these changes are towards the more juicy end of philosophy of religion. That's not the key problem. It's the depoliticisation coupled with dumbing down (in the form of the raised dependence on extracts) which I'm opposed to. The emphasis on the philosophy of religion may be a crude attempt to supplant politics with moralism. This is the grass-roots impact of Gove's neoconservative agenda.

The tension in education policy has always been between the impetus for critical thinking and the need to churn out well-equipped consumers/workers. The enlightened citizen is far from the ideal of educational policy. If you swing too far towards the latter you end up with high-performing automatons and no innovation. A populace can be too deferential and obedient to the point of stagnation. And, of course, you can run into serious trouble if you find yourself with excess innovation. It could be argued that that was precisely what happened in the 1960s when the post-war generation began to question the Establishment and its authority on a whole series of questions. Education policy will oscillate within this spectrum to try and strike a balance of opening a space for innovation in one area while closing such a space elsewhere.

Far from anything new, we can now properly situate Gove in this bipolar shuffle and this is no matter of speculation. Before Michael Gove was an MP he worked for The Times as a columnist (writing at £5,000 a month for a column he churned out in an hour) and he was not shy about his views on a lot of issues. On the tuition fees set by the Blair government Gove wrote "Some people will, apparently, be put off applying to our elite institutions by the prospect of taking on a debt of this size. Which, as far as I’m concerned, is all to the good." A good education is conceived of as a commodity and, in Gove's mind, it is too readily available to the lesser classes. It's a vision in line with the view taken by Allan Bloom, a fellow neoconservative, that the masses are to be moulded by the ideas of the few great men. The bewildered herd are to be kept in check.

So I think we may risk the suggestion that Gove doesn't mean well when he guts the humanities of innovative capacity. Even the A-level course I took in philosophy, which Furedi foolishly romanticises, actually had political content in the second year. At AS we looked at epistemology, ethics, tolerance, and aesthetics, then at A2 we looked at moral philosophy in greater depth and finally political philosophy. That meant normative and meta for moral thought. Then we moved onto reading JS Mill. On Liberty has its flaws (which the English are impervious to conceding) but the students could at least develop a perspective on its content. So we could then decide whether or not we buy into Mill's utilitarian brand of classical liberalism. You would think Gove would be for this sort of thing. Instead we find the syllabus is being debauched even more than it already had been.
 

Saturday, 19 April 2014

Orwell on Private Property.

 
In August of 1944 one correspondent asked a famous English journalist "Are the squares to which you refer public or private properties? If private, I suggest that your comments in plain language advocate nothing less than theft and should be classed as such." The journalist was none other than George Orwell. When faced with such bourgeois casuistry Orwell had just the right response.
 
If giving the land of England back to the people of England is theft, I am quite happy to call it theft. In his zeal to defend private property, my correspondent does not stop to consider how the so-called owners of the land got hold of it. They simply seized it by force, afterwards hiring lawyers to provide them with title-deeds. In the case of the enclosure of the common lands, which was going on from about 1600 to 1850, the land-grabbers did not even have the excuse of being foreign conquerors; they were quite frankly taking the heritage of their own countrymen, upon no sort of pretext except that they had the power to do so. 
Except for the few surviving commons, the high roads, the lands of the National Trust, a certain number of parks, and the sea shore below high-tide mark, every square inch of England is "owned" by a few thousand families. These people are just about as useful as so many tapeworms. It is desirable that people should own their own dwelling-houses, and it is probably desirable that a farmer should own as much land as he can actually farm. But the ground landlord in at own area has no function and no excuse for existence. He is merely a person who has found out a way of milking the public while giving nothing in return. He causes rents to be higher, he makes town planning more difficult, and he excludes children from green spaces: that is literally all that he does, except to draw his income. The removal of the railings in the squares was a first step against him. It was a very small step, and yet an appreciable one, as the present move to restore the railings shows. For three years or so the squares lay open, and their sacred turf was trodden by the feet of working-class children, a sight to make dividend-drawers gnash their false teeth. If that is theft, all I can say is, so much the better for theft.
 
It's an admirable response precisely because it accepts the premises of the question and rolls them upside down. Orwell's pen left behind cutting sentences with the historical perspective so neglected in English society: where intuition and common-sense are the prime virtues. Class is the unspoken reality we all live with and here Orwell cuts to the bone and to the marrow. This is not the same gent fetishized and sanitised by the liberal intelligentsia and conservative commentariat alike.

Saturday, 8 March 2014

Getting Russia Dead Right.


Western journalists claim Putin wants to ‘rebuild the Soviet Union’.
What’s wrong with this picture?
If we want to understand Putin’s Russia we have to look at the way the Russian Federation emerged from the tumultuous collapse of the USSR. Not simply a mindless KGB thug Putin was a supporter of Gorbachev and opposed the Communist attempt to overthrow Mikhail Sergeyevich and turn back the tide in 1991. The possibility of a new order was realistic in those days. Gorbachev had initiated a modicum of reform. The bloody war in Afghanistan was over. It looked as if the US might actually want a settlement on missiles. Bush had promised Gorbachev that he wouldn’t expand NATO any further eastwards. No wonder then that the majority of Russians, along with Putin, were on the side of glasnost and perestroika.
The Russian President Boris Yeltsin used this to his advantage. He was the right man for the time and the wrong man for Russia. Around this time the Bush administration was busy backing nationalists in Yugoslavia and had adjusted its aid policy to back secession to break up Tito’s dream of a state for all Southern Slavs. In the same way George HW Bush took the side of Russian nationalism to break up the Soviet Union. The great reformer Gorbachev had become a hindrance to be thrown on the wayside. The US sought to align itself with Boris Yeltsin. The Russian people flocked to Yeltsin after he became a political centre of gravity for democrats in the midst of the botched coup. It wouldn’t last. The real agenda had nothing to do with ideals of democracy.
The preference was for a selection of tiny fractured states which could easily be picked off one by one and subjected to economic underdevelopment. This matched Yeltsin’s personal aims for power and grandeur. In a series of manoeuvres Yeltsin cut deals with the leaders of Soviet republics, including Leonid Kuchma of Ukraine, and saw the Soviet Union dissolved. This is one of the ironies of the present crisis in Ukraine. The coalition of neoliberals and ultra-nationalists who seized power form Yanukovich have done so to pull Ukraine out of Russia’s orbit and closer to the EU and NATO powers. Yet it was nationalism followed by neoliberal prescriptions which have led to this conjunction of rebellion and incursion. It’s very likely that the people of Ukraine will not be served by these events as we can see from recent Russian history.
Within a week of Gorbachev’s resignation the new path was embarked upon. The Russian Parliament gave the President free reign to implement an economic programme of deregulation and privatisation. Yeltsin had the advice of the economist Jeffrey Sachs and such creatures of the market as Larry Summers. The plan was to establish the conditions for a market society as fast as possible. First the price controls were eliminated. The resulting hyperinflation quickly ate through the savings of most Russians. This was soon followed with a rapid privatisation of over 200,000 state-run companies. The Russian people suffered for this and the devaluation of the rouble, millions fell into unemployment and even those working were not guaranteed a wage. Every Russian was given vouchers to buy shares in the newly private companies. Desperate for cash most people sold their vouchers cheaply to ruthless businessmen. But it was just the beginning.
After a year of ruling by decree Yeltsin faced the first signs of opposition from the Parliament. With the approval of Washington the Russian President dissolved Parliament and suspended the Constitution. When the parliamentarians occupied the building in protest Washington backed his decision to besiege the building with tanks and shell them into submission. The economic reforms were taken further. Even more controls on prices were removed (going as far as to remove controls on basic food goods like bread), state expenditure on social services was slashed to the bone, and the pace of privatisation was raised. Yeltsin found his real constituents in the emergent bourgeoisie – later to be dubbed ‘the oligarchs’ – who, with his help, were stripping $2 billion out of the country every month. He undersold enormous industrial assets and resources to these people at sometimes less than 2% of their real value.
What was the end result of all this? By the end of the decade 74 million people were plunged into poverty, with 37 million living in poverty ranked as ‘desperate’. Meanwhile Moscow became the home city to the most billionaires of any other city in the world. In 1999 Boris Yeltsin was a barely functioning figurehead with a coterie of close advisors and cronies around him known to the press as ‘the family’. It included oligarchs like Roman Abramovich and Boris Berezovsky. It would be this same coterie which selected Putin to succeed Yeltsin. It was appealing as the Kremlin was wracked with corruption scandals and Putin was the head of the FSB, the successor to the KGB. The oligarchs thought they could control him and use him as a battering-ram against their enemies who were looking to crack down on corruption. Putin was soon made Prime Minister. Terror attacks in Russia gave Putin the opportunity to wage war on Chechnya and boost his popularity.
The oligarchs expected Putin to be compliant and follow the Yeltsin plan of handing over Russia’s vast wealth of resources to them and their friends. Putin became President in 2000 after Yeltsin’s resignation was secured by the oligarchs. Putin had been underestimated by his allies. He soon consolidated his position and turned on them. Boris Berezovsky fled to London to escape arrest. He was soon joined by other oligarchs. Putin smashed his old allies and set out to strengthen his position as a Hobbesian force of order and stability after the disarray of the 1990s. He has aligned himself to oligarchs running the energy industry. The role of the state would now be reasserted and buttressed with tough populist appeals to chauvinism. Putin stands as the man who can flush out all the “problems” facing Russian society, whether it’s Chechen terrorists, corrupt oligarchs, or more recently homosexuals. He’ll even keep the factories running on schedule.
Now with Putin in the Kremlin the West is much more nostalgic for the days when Boris Yeltsin ran a money laundering operation out of that very building. There was never much scorn in Western governments for Russia for its savagery towards the Chechens and their bid for independence. Instead the Russian state is to be demonised for its incursions into Georgia in 2008 and, of course, Ukraine in 2014. Yet the killing of tens of thousands of people in Chechnya, since 1994, on and off, hardly gets substantive coverage in the Western media. The real problem Putin’s Russia poses for the EU and NATO is that Moscow is much less willing to accept the expansion of NATO outposts to border-states. The Russian Federation has a brutal government, but it is not feared or loathed because for its brutality, it is despised because it stands as an abandonment of Yeltsin’s market reforms and an opponent to US influence in its old backyard.

This was written and published for the Third Estate.

Saturday, 16 November 2013

Permanent Austerity.


Bound in white tie, but not gagged, merely primed for performance as always, the Prime Minister finally admitted what some of us had suspected from before the beginning. In his speech David Cameron came out with the rhetoric of small government, that we have to do more with less and shrink the state to a more effective role. So the point of the austerity measures is not to reduce the deficit necessarily, it is to slim down the size of the state. Of course, it is worth saying that the ideological mission of a shrunken state is one and the same with the claims to 'necessity'. It is no coincidence that the claim that the spending cuts are 'necessary' comes with added promises of greater 'productivity', 'innovation' and 'efficiency'. In fact, a government euphemism for cuts is 'efficiency savings'. This is the lexicon of neoliberal managerialism.

If we are to take David Cameron on his word then we might say that the austerity is meant to be perpetual and never ending. The key part being when he said "We are sticking to the task. But that doesn't just mean making difficult decisions on public spending. It also means something more profound, it means building a leaner, more efficient state.  We need to do more with less. Not just now, but permanently." The sight of the Prime Minister in his white little frock at the throne dripping gold and these words coming out of his mouth was something to be seen. Unfortunately the irony of the Head of Her Majesty's Government proselytising on the virtues of 'small government' is lost on conservative opinion. Meanwhile the handful of liberal and leftish rags immediately seized on the words of the Prime Minister. But no one should be so surprised really.
 
Just observe the fact that the original proposals by George Osborne were meant to reduce the deficit to naught by 2015 and now the plans to wipe the deficit have been extended to 2020. To this picture we may add the claims that the NHS is facing a shortfall of £10 billion, that was back in 2010, it was Andrew Lansley, who used the figure to justify the cuts he was making at the time. Now there is talk of a coming shortfall by the end of the decade of £30 billion. One wonders if Cameron's lot will ever feel they have lowered the rate of spending far enough. Every problem of the public services and welfare state are seized on by these vultures as proof of the need for deep cuts. The various scandals to be endured by the NHS of late fit the example perfectly. Hunt will make a statement on the problem at hand (which is no doubt real) to buttress his position as a competent Health Secretary coming up with the prescription for a better health service. Cuts and more cuts.

The examples the Prime Minister reaches for are quite interesting for this reason. He singled out for praise the accomplishments of Michael Gove, the 40% cuts to administrative staff at the Education Department to be specific. Then there are the 3,000 'free schools' and academies set up under the watch of Gove. He lumps in the shrinkage of the department with the use of public assets and money to ensure education for the children of sharp-elbowed middle-class parents. 'Free schools' are established at the expense of the tax-payer and even at a cost to comprehensive and other state schools in terms of resources. This is the same ministry to rearrange the pensions system for teachers with the hopes of devaluing their retirement funds by 15% and raising their payments by 50%. Over the same timeline you'll find tuition fees introduced and raised almost at every university to £9,000, apparently to reduce the deficit when HE funding accounts for 0.7% of GDP.


This is the manifest reality of what Cameron means when he speaks of a "leaner, more efficient state". The idealised slim-line state of libertarian imaginations is not to be taken seriously as a realistic prospect. Really we're looking at the possibility of living in a society where the social safety-nets is non-existent while the state intervenes to create markets, boost supply and ensure vast profits. There will be plenty of bailouts to come. In some respects the neoliberal period seems much more like a state of flux than a rigidly set social order. It is partly identifiable by its oscillations, the sudden shift in gears from taking a chainsaw to financial regulations to diving into the public purse to save the lemmings before they go over the cliff. Though it is a very narrow and restricted spectrum with serious limitations. There is only so many regulations to burn and so far the taxes can be cut.

Jumping each hurdle might become much more difficult as we go long. Crises will offer opportunities to reconstitute the economic formations as they were prior to them. Schumpeter called it 'creative destruction': the field of competitors is wiped clear for old forces to go from strength to strength. A better diagnosis from Naomi Klein would be economic 'shock therapy' whereby the crisis provides a cover for a series of assaults to be launched on the living standards of working-class people. It's worth bearing in mind that the current order took shape in the way that the Thatcherites circumvented the crisis of social democracy: 1) cutting public expenditure, 2) privatising state industries, 3) smashing the unions and 4) deregulation of finance. Incidentally the average rate of growth in the 70s was 2.5% and it remained the same in the Thatcher decade. So those who think the austerity is about high rates of growth are sadly mistaken, at best.

Not surprisingly then 0.8% of growth is enough for George Osborne to declare a great victory, a strange position given that there has been no opposition in Parliament to his agenda. Only a brat as expensively educated as the Chancellor could perceive competition in a game rigged in his favour. The Cameron lot want to patch up this sorry set-up, not to fundamentally alter its trajectory. The failures of the past are accentuated, and framed in a certain way, by the abstract principles of today. A high-rate of public expenditure is measured by a criterion not of the social democratic era. The 1970s was a terrible time in British history not because it necessarily was so awful, but because the conditions differ so greatly to today. To be specific, the scope of the state - particularly in the ways that helped poor people - in those days is what outrages conservative-minded people.

The standard of a high level of government debt was changed by the Thatcher-Major era. Suddenly it was set at a benchmark of 40% when this country has seen rates as high as 250% in the wake of World War Two. And that was a well managed economic situation. The Labour government of 1945 established a social democracy complete with the trimmings of a welfare state and universal health-care. The story of how the social democratic post-war consensus developed systemic problems and crises is a long one and a subject for a different article. What may be said is that the failures of that epoch have been accentuated in the years since. The abstract principles of today are applied to those yesteryears with the self-serving results one would expect. The rightward trend of discourse leaves the state-led settlement of the 50s and 60s looking almost Soviet to too many people today. This is the death of social democracy.

Wednesday, 13 November 2013

The Great Rip-Off.

 
There was hardly any outrage in the air when the Health and Social Care act of 2012 was passed. The act stipulates that NHS doctors take control of their budgets as well as permit them to buy services from private companies. Another stipulation is to allow hospitals to use up to 49% of hospital beds and theatre time to generate private income. The section 75 regulations stipulate that the sectors of the NHS which can’t be ‘provably’ run exclusively by public provision will have to face competition from the private sector. Lord Phillip Hunt said that the regulations will “promote and permit privatisation and extend competition into every quarter of the NHS regardless of patients interests.”[1] He added that the reform will make privatisation the default position as the burden of proof is placed on the shoulders of any commissioner opposed to private health provision.[2]

The Chair of the Royal College of General Practitioners has stated that these reforms “remove the legal framework for a universal, publically provided, publically managed, publically planned, democratically accountable health service.”[3] Concurrent to these reforms the Coalition has been underfunding health services. In the first budget of the Coalition government, George Osborne announced a 1% increase in funding for the NHS. Yet that amount falls short of the pace at which health costs rise, which is sometimes 2% or 3% above inflation. There is a correlation to this policy. Waiting lists increased by 43% from 2010 to 2012.[4] Fortunately for David Cameron the media has yet to raise more than a whimper of questions about these reforms. It was Lansley who claimed that the NHS has to face cuts for a shortfall of £10 billion to be avoided.[5] Then this year came talk of a £30 billion shortfall at the end of the decade.[6] The government’s prescription: cuts, cuts, cuts.

This is the apogee of decades of health-care policy in this country. The Thatcherites first introduced private companies in the area of cleaning services and even went further to provide contracts to private companies willing to invest in the construction and operation of services. Public-private partnerships were established, effectively subsidising private companies with tax-payer money. The cleaning contracts commissioned from the private sector have led to rising costs for hospitals and a decline in hygiene standards. Out of this came the rise in MRSA.[7] New Labour continued and furthered these developments. The performance targets based on market standards were expanded and health-care professionals were left jumping through even more hoops. The rhetoric of New Labour was decentralisation they offered to ‘free’ hospitals from central control and allow local people to ‘own’ their own hospital.[8]

As of 2005 the UK government was looking to shift 10% of the work of existing NHS organisations to the private sector.[9] The NHS signed contracts with eight different health-care providers to set up fast-track treatments centres to treat 250,000 patients over five years. The programme forced some NHS hospitals to close down wards. In 2011 Andrew Lansley was forced to admit that 60 hospitals were on the “brink of financial collapse” as a result of public-private partnerships first started by John Major and expanded under Blair. The hospitals could not meet the high payments being demanded by private companies. The cost of these gluttonous companies feeding off of the public health service has been bared all along by the British tax-payer. Care homes for the elderly have been privatised just as prisons and now the post office have been. The pig-out goes on.

Yet these developments are not unprecedented around the world. In Canada it was the Conservative Mike Harris who introduced the public-private partnerships in Ontario to open up public assets to corporations in the financing of new facilities and the operation of support services.[10] Diagnostic clinics for MRIs and CT scans were opened up to private companies.[11] Many have introduced all kinds of hidden costs, with one place even charging $100 for an orange juice.[12] These measures were expanded and deepened by Liberal and Conservative administrations. Almost 30% of Canadian health expenditure came from private payments in 2010.[13] More and more there are user fees for those without private insurance and physicians can block treatment if you don’t pay up. Private health-care payments account for 3.1% of Canadian GDP. The spread and scope of private clinics is being expanded still.[14]

Meanwhile in Australia the government of Tony Abbott has confirmed that they will be pursuing the privatisation of Medibank and has not ruled out any further privatisation schemes.[15] Just as the British health system has been underfunded the Australian equivalent has endured cuts in the number of public hospital beds from 74,000 to 54,000 from 1983 to 2009.[16] Effectively this means a 60% cut when the growth in population is taken into account.[17] The Rudd government excluded from the commission’s review, the current 30% rebate for private insurance, which currently costs $3.7 billion annually, so as not to antagonise the insurance companies.[18] The successive Gillard government initiated an austerity programme leading to cuts being set to health budgets in New South Wales of $3 billion, $1.6 billion in Queensland and $616 million in Victoria.[19] So the incremental process of privatisation is not contained to this tired little island.

The forces behind these shifts are not just national but international. The yet to be finalised free-trade deal between the US and the EU may well have troubling implications for the future of universal health-care throughout the EU and not just in the British Isles. It looks like the agreement will open up public services – including health – to private investment and ownership.[20] It would appear as though the Bolkestein directive has only been reconstituted in its mission to see the European Union become a mere managerial edifice for a liberal market economy. At the same time we can see Obama has initiated a series of conservative health reforms in one of the few civilised countries without universal coverage. In the sectors that have profited from the chaos of the American situation there are keen eyes for the potential gains in plundering the NHS. We have been denied a debate on the privatisation of health-care, but as we aren't going to be given one. We should decide for ourselves what kind of society we want to live in and take action.

This article was originally written for the Heythrop Lion.
 



[2] Ibid.
[3] Ibid.
[8] Ibid.
[9] Ibid.
[11] Ibid.
[14] Ibid.
[17] Ibid.
[18] Ibid.

Sunday, 29 September 2013

The Evacuation of Meaning.

 
 
You may have heard recently that the Labour Party has rediscovered itself as the revolutionary vanguard ever ready to play dictatress to the proletarians of the UK. Unfortunately the slogan won’t be ‘Peace, Bread, Land’ exactly because Ed Miliband has pledged to freeze energy prices for 20 months, to protect the minimum wage, repeal the bedroom tax and to incentivise private companies to develop on the land they own. No promises to reverse course on tuition fees, certainly not on ‘free schools’, the coming sale of Royal Mail and the on-going privatisation of the NHS so ignored by most of the mainstream media. If you read The Telegraph, The Daily Mail, The Sun and The Daily Express you will of course know this is the most radical position ever taken in the last thirty years. That is only demonstrative of just how deeply the termites have spread and how well they have dined. Tony Blair and Peter Mandelson have condemned Ed Miliband’s positions for abandoning the New Labour script of triangulated means to compete for the Conservative vote and, naturally, taking the working-class vote for granted. The Blairites are totally on board for the Cameron prescription of fiscal conservatism (for the poor anyway) to restructure the welfare state and public services.

The right-wing commentariat are on the offensive to safeguard the existing order (or should that be disorder?) of bloated energy oligopolies and the particular approach Cameron has taken to pumping up a housing bubble in London. The bedroom tax has appeal because gutting the benefits system will make some in the public feel good that Nicky Welfare isn’t getting away with spending his £60 a week on lager anymore. That’s the only discussion we’re allowed about benefits. No one wants to talk about the fact that Nicky Welfare’s housing benefit doesn’t go on his drinking habits, but it does go straight into the pockets of a landlord. The housing crisis is not up for discussion anymore. The Conservatives and Lib Dems have been hard at work trying to patch up the system as it was when Gordon Brown was in the Treasury. All of them will talk the talk about the need to build more houses to stoke the chronic shortage and lift people out of dilapidated housing. There is no serious commitment to extending public money to building more social housing. Instead the government and the so-called left-wing opposition are signed up to selling off these houses thereby feeding the same processes of debt and property speculation which laid the basis for the last crash.
 
At the same time, the Labour Party has not reclaimed Clause 4 to recommit itself to the nationalisation of industries and assets. Instead Miliband waffles as the NHS is sold off bit by bit and even as the delegates vote unanimously in favour of renationalising the railways the Labour leadership looks for the door. Yet ‘Red’ Ed can’t help himself from affirming a vague commitment to an even more vague democratic socialism. It seems like just five minutes ago Ed Miliband was calling himself a “modern progressive social democrat” and affirmed a commitment to a “responsible capitalism”. It shows how far things have gone, Tony Blair knew what he had to say to get ahead back in 1983 when he described himself as a socialist influenced by Karl Marx. Keep in mind ‘Red’ Ed is the same leader looking to chuck out the troublesome unions, while he has taken the side of Boris Johnson in his support for a “use it or lose it” policy on land ownership. Even Margaret Thatcher maintained a 60p tax for nine years, but Ed is so ‘red’ for supporting the 50p rate. The truth is the spectrum has moved considerably to the Right and now the much lauded centre is hardly a bastion of moderation. At best Labour offers to hold back a bit more than the Conservatives: austerity lite, rather than austerity.
 
Meanwhile the liberal press is in just a bad shape as it agrees with the right-wing analysis for the most part. The liberals love the idea that the socialist movement and its project are long dead. To them Ed Miliband is a nuanced centre-left politician, better than Tony Blair but not as bad as Tony Benn. It’s just another variation on the Third Way paradigm of New Labour and New Democrats. There is virtually no difference in rhetoric as Miliband has been oh so very careful not to distinguish himself from the odious stench of Blairism. Nor has he set out to distance himself from the Brown mound. He doesn’t want to define himself or to be defined and yet he expects to win an election on the same old pablum. The conservative press have already laid down their script, as they had done from day one, Ed Miliband is a leftist and his failures are to be taken as failures of the Left. The liberals more or less have swallowed so much of the premise as to tie themselves to this conclusion. When it came to Syria the Labour leader was distinguished not by his success but by his failure to push through his ‘yes’ motion. It would’ve made his father proud. It might only be reasonable able to hope Miliband can produce more of these fuck ups once in office.

This article was originally written for and posted at the Third Estate on September 27th 2013.

Monday, 26 August 2013

Miliband's 'Lesser Evil'.


It is timely given that it was Ralph Miliband who predicted that Labour would always fail the working-class. He couldn’t have been more right. Yet the failures of Ed Miliband will be portrayed as the inevitable disaster of a leftward shift. To understand such a falsehood is to grapple with history. The Labour Party surrendered the ground of opposition long ago. It was set in motion years before Ed Miliband took on the leadership role. The battles waged in the 1960s and 70s internal to the Establishment have had consequences which are still living with. Monetarism filled the cracks of the decaying post-war settlement with James Callaghan stepping in with just the rhetoric the IMF demanded of the British government. That was 1976. By 1979 the choice we faced was between a right-wing Labour government and an even more right-wing Conservative government.

Almost 35 years later and we’re still ensnared by the politics of frugality. The election of 1979 should not be forgotten even if the old hag has finally given up the ghost. The lesser evil offered by Labour in 1979 set the course for the way things have transpired and before we knew it the lesser evil of Tony Blair was on the television. The incessant bleating of John Major’s scandal government couldn’t have made the Third Way more appealing. Blair would make a few gestures to his base – such as minimum wage, devolution, fox-hunting ban etc. – only to institute tuition fees, crackdown on civil liberties and leave the banks to run amok. All the while the Labour government sat back as income inequality steadily grew to its highest point since 1961. As if all of this isn’t bad enough, by 2005 Blair had invaded Afghanistan and Iraq with all the gusto of a child playing with toy soldiers. There ceased to be a lesser evil at all in other words. 

The afterbirth of Blairism first appeared before us as the mound of Brown, only to be left inert and solid by the cold winds of the 2010 election. Since then Ed Miliband has tottered about as Labour leader making as few commitments as humanly possible. The gutter-press went on a pre-emptive offensive against any possible imaginative thoughts in Miliband’s head and dubbed him ‘Red Ed’ for good measure. Yet Miliband soon brought on board Maurice Glasman to engage in ‘Blue Labour’ shenanigans to siphon off the communitarian appeal of ‘Red Tory’. The competition is over a very small slice of votes, while the working-class vote is taken for granted. So he’s had plenty of experimentation with ‘Blue Labour’, ‘predistribution’ and, finally, ‘One Nation Labour’ which was literally plagiarised from the Conservative government of 1868. In spite of this inconvenience, Matthew D’Ancona described Miliband’s speech as ‘divisively left-wing’.

Serious minded people can see that the trilateral consensus has reached an impasse where the only task left is to dress up right-wing policies as cute and cuddly. Brown’s odour remains very much with us. Even though the financial crisis was a product of decades of economic policy around the world the Conservatives have succeeding in shifting the terms of the debate from growth to cuts. The Labour Party works within the same field of assumptions. Appropriately Blair is all for austerity and Ed Miliband has, in effect, signed on for austerity lite (at best). The reddest moment might’ve been last September when Miliband said “We will repeal [the Coalition’s] NHS bill” on the grounds that “it puts the wrong principles back at the heart of the NHS.” That’s not a bad statement, yet the NHS bill isn’t specified (thereby leaving open the possibility of a U-turn). Around that time Labour leader was saying that the next Labour government wouldn’t spend £3 billion to undo the restructuring currently underway. Again, the Health and Social Care Act remained unnamed. Then in June of this year the same walking disappointment reiterated his desire to repeal Cameron’s ‘Health Act’. None of this wordplay inspires confidence.

It seems obvious that the Labour Party is not settled in leadership, let alone in policy where Miliband has insisted that he won’t make promises which he cannot keep (so he makes no clear promises at all). The cowardice is for all to see. Blair and Brown managed to lose the Labour Party around 5 million votes in a period of 13 years. It may be too early for the Labourites to distance themselves from the legacy of New Labour. That would concede ground to the Conservatives who seek to blame everything that they are doing on Brown’s juggernaut-like spending spree. It is significant that the Conservatives failed to achieve a parliamentary majority against this backdrop of mass-disaffection. In fact, the Conservatives could only muster a 3% increase since 2005 and they haven’t seen a majority victory since the glory days of John Major. Perhaps it was a sign of inexorable decline when the carcass of Stephen Milligan was found festooned with electoral cord, bin bag, fruit and stockings.

The state of crisis within the Labour Party may be obvious, but the parallel crisis in the Conservative Party has received little discussion. The plump-lipped Michael Portillo has speculated that the Tories might not see a majority in this decade either. No governing party has ever increased its majority in Parliament since Anthony Eden. In that case it will have been 30 years since the Conservatives held a majority share of the seats in Parliament. No opposition party has achieved a majority swing for a good eight decades. It looks as though Parliament may still be hanging in 2015. Only the well-disciplined bootlicker Liberal Democrats can secure another coalition with one of the real parties. And the psephologists of the Labour-Conservative oscillation know it. In other words, the conditions are there for a left-wing alternative to challenge the centre-ground. We can even build that alternative, or sit and wait for the lesser evil to reappear.


This article was written for and posted at The Third Estate on August 26th 2013.

Saturday, 15 June 2013

The Boris Johnson Symptom.

 
In recent years there has not been a more significant symptom of disarray within the Conservative Party than the undiluted veneration of Boris Johnson. This is especially the case with the constant talk of Boris becoming Party Leader and maybe even Prime Minister one day. The Conservative Party must be aware of the fact that they haven’t won a majority government in more than 20 years. It’s hard to picture the traditionalists being massaged into ecstasy by a Prime Minister BJ, perhaps even less so than Prime Minister DC. So it must be about the desperation in the knowledge that the Party seriously needs popular appeal. The right-wing adoration for Boris ranks in high farce. There were those who claimed his re-election in 2012 was down to his strong conservative principles. Toby Young has bet £15,000 with Nigella Lawson that, by 2018, Boris will be Tory leader and, in the imagination of some, a prospective Prime Minister. Then in 2012, that custodian of the sacred foetus, Nadine Dorries came out in standard reactionary flair to berate David Cameron as a ‘sheep in wolf’s clothing’ before fawning over the imaginary prospect of a Boris Cabinet.
 
The prospect remains a realistic one in the minds of many. Yet we’d do better to examine the Boris phenomenon with more serious eyes. If we assume that Boris is sensible (a risk we may live to regret) then surely the Mayoral office is much more suited to his attributes. It’s not that he is an effective politician due to his strong conservative principles. The efficacy of the Johnson persona is his relatively detached relationship with power which lends great prowess to the anti-political role of a clown. As Mayor Boris enjoys the freedom to rail against the government and not commit to anything. In a higher office Boris would lose this non-committed freedom and be held to rigorous scrutiny within Parliament and in the press. No amount of bluster from foolish reactionaries and eejits will change this obvious flaw in the delusion. It was precisely the anti-political purity of Boris Johnson by comparison with Ken Livingstone that secured the glass testicle for the Conservatives. Boris doesn’t come across as a politician. He’s a combination of the Wodehousian aristo and a political tabula rasa. Behind the blank veneer you find, at best, the incoherence of market liberalism.
 
Last week Boris put forward a series of proposals for a ’2020 vision of London’ which he claims as his own. Apparently the future will be a ‘golden age’ in transport for Londoners. The programme is exactly what we would expect from the anti-political populist who has run City Hall for five years now. The prospect of 75% automation has the mouths of many commuters watering profusely. Smashing the last of the strong trade unions in this country is a cause endorsed by liberals as well as conservatives. It’s a broad based appeal to the urban poor who don’t want their lives disrupted regularly by strikes (and with good reason); as well as the suburban middle-classes who hope the roads may be less congested if the unwashed hordes are shuffling about underground. The regressive fare hikes are defended as necessary measures in austere times, yet it was Boris who closed the deal with Venezuela for cheap oil – a deal cut by Mr Livingstone to maintain low bus fares. There is no talk of necessity when it comes to slamming the breaks on the congestion charge to rake in petit-bourgeois votes. Simultaneously the £12 billion development of Crossrail 2 no doubt offers prospects for speculators, just as the extension of the Jubilee line cost £3.5 billion while it raised land values for speculators to rake in £13 billion.
 
Much has been made of the late date at which these proposals have been put forward. It is five years since Boris strode into City Hall on horseback leading a populist cavalry against ‘Red’ Ken and only three years until the next Mayoral election. It’s possible that the plan has been timed so that only a few of the proposals actually come into fruition. The safe bet would be that the transport reforms will pass, but the aim of building 400,000 new homes may not. After all this city is not for the poor, it’s for the wealth-creators in Canary Wharf. The London working-class find themselves battered by such regressive taxes as VAT and the exorbitant travel fares which absorb so much of the wage packet. Meanwhile the housing benefit reforms are likely to force many out of their homes as the question of extreme rents remains unanswered and even unacknowledged.
 
Take note, the so-called plan to build 400,000 new homes for the next decade amounts to releasing more publicly-owned land to be developed (probably by private companies) combined with greater borrowing for local government to boost building projects and a ‘use it or lose it’ measure to ensure private investment leads to development. The Mayor advocates the devolution of power – particularly over property taxes – to City Hall in order to further facilitate greater investment. All the while Boris Johnson argues that there is nothing to be gained from regulating the financial colossus in the City. It would seem this is more of a plan for profitability than anything else. It’s possible then that the houses may be built, but in what form we can only speculate. We can gauge as much from the fact that City Hall approved the construction of a block of luxury flats in Elephant & Castle as part of a billion-pound gentrification project. Just as we can expect similar efforts in Hammersmith around the Westfield centre where land values have risen. It’s plausible that the local working-class will be pushed out to make way for very nice houses for the more bourgeois.
 
With all this in mind, it seems there is an uncertain future for the Conservative Party with its shrunken talent pool. It seems probably that Cameron will hold onto his position simply because there isn’t a serious contender to unseat him. That goes for Ed Miliband, who poses little serious opposition to Cameron’s government in terms of policy. We can thank the Labour Party for helping to keep Margaret Thatcher in office for 11 years and we shouldn’t shirk to place the blame where’s its due come 2015. Not that we should really care that the Conservative Party seems a bit short of an effective leader, as it has been since the hag was slain, as what’s really lacking is opposition. The economy is still struggling to drag itself out of this slump, for the ruling-class there aren’t any clear answers at hand. Likewise, there aren’t any obvious ways for the Establishment to circumvent the problems incurred by economic crisis and electoral despair. In short, the signs of disarray within the Conservative Party are to be welcomed as much as the timidity of Labour and Lib Dem is to be despised.

This article was originally posted on the Third Estate on June 15th 2013.