Showing posts with label managed capitalism. Show all posts
Showing posts with label managed capitalism. Show all posts

Thursday, September 29, 2016

Graham E. Fuller — Democracy, the “Great Debates,” and China


Graham Fuller talks some sense.

Now let’s look at the other end of the spectrum. It’s interesting that China today is actually quietly touting to the rest of the world its own evolving system. Of course we recoil from the terrible catastrophes of Chinese regimes over most of the past century. But we shouldn’t lose sight of the fact that China has been concerned with principles of good governance going back some three thousand years, including Confucian principles of the responsibility of “cultivated” or educated people to govern wisely; that was probably as good as it got in that era. More important, the state bureaucracy was selected through massive nation-wide examination systems to choose the most qualified. The system had its good periods and bad, almost on a 300 year cyclical basis—breakdown and restoration.
Today China is creeping back again, this time from the disasters of Chairman Mao towards a semblance of order and rationality in governance. It has implemented a series of often unusually effective policies that are slowly bringing an ever rising percent of the rural and urban poor into the middle class and a slightly freer life.

Now, I don’t want to live in China particularly. But consider the daunting challenges of running this country: one that was left behind in the last century or so, invaded by English and Japanese imperialists, massively misruled under fanatic communists (not all were fanatic) for fifty years, and now presides over a population approaching 1.4 billion people. China’s leaders operate on the razor’s edge: meeting pent-up demand after decades of deprivation, managing the transition of millions of peasants who want to come to the cities, feeding and housing everyone, maintaining industrial production while trying to reverse the terrible environmental damage wrought in earlier decades, to maintain stability, law and order while managing discontent that could turn violent, and to maintain the present ruling party in power to which there is no reasonable alternative as yet. That’s quite a high-wire act.
So if you were running China today, what would you advocate as the best policies and system to adopt? Chances are few of us would simply urge huge new infusions of democracy and rampant capitalism. The delicate balance of this frail recovering system needs to be guided with care. But it is basically working—as opposed to looming alternatives of chaos and poverty.

China today suggests to developing countries that China’s own model of controlled cautious light authoritarian leadership—where leaders are groomed over decades up through the ranks of the party— may be a more reliable system than, say, the bread and circuses of the US. That’s their view.
No one system has all the answers. But it’s worth observing that by now the US probably lies at one extreme of a political spectrum of bread-and-circus “democracy.” Can the system be reformed? Ever more serious questions arise about the present system’s ability to meet the challenge of this century—along multiple lines of measurements.
And, as world gets more complex, there is less room for radical individualism, whistle blowing, and dissent. Vital and complex infrastructural networks grow ever more vulnerable that can bring a state down. The state moves to protect itself. The strengthening of the state against the individual has already shifted heavily since the Global War on Terror and even more so under Obama.
I’m not suggesting that China is the model to be emulated. But we better note how it represents one rational vision of functioning governance of the future—under difficult circumstances—at one end of the spectrum. The US lies at the other. Is there anything that might lie somewhere between these two highly diverse systems of governance?

Just sayin’.
In the spirit of disclosure, this is a view that I have espoused previously so I am biased in its favor. I am happy to see someone "on the other side of the fence" putting it forward for consideration in the policy establishment.

Democracy, the “Great Debates,” and China
Graham E. Fuller, former senior CIA official

Saturday, June 28, 2014

Daniel Little — Thelen on the prospects for egalitarian capitalism

There is a version of economic historical thinking that we might label as "capitalist triumphalism" [aka market fundamentalism and economic liberalism] -- the idea that the institutions of a capitalist economy drive out all other economic forms, and that they tend towards an ever-more pure form of unconstrained market society. "Liberalization," deregulation, and reduction of social rights are seen as economically inevitable. On this view, the various ways in which some countries have tried to ameliorate the harsh consequences of unconstrained capitalism on the least well off in society are doomed -- the welfare state, social democracy, extensive labor rights, or universal basic income (link). Through a race to the bottom, any institutional reforms that impede the freedom and mobility of capital will be forced out by a combination of economic and political pressures.

The graphs above demonstrate the current structural differences among Denmark, Sweden, Germany, Netherlands, and USA when it comes to training and income support for the unemployed and underemployed. It is visible that the four European economies devote substantially greater resources to support for the unemployed than the United States. And on the triumphalist view, the states demonstrating more generous benefits for the less-well-off will inevitably converge towards the profile represented by the fifth panel, the United States.… 
Thelen's most recent book, Varieties of Liberalization and the New Politics of Social Solidarity addresses the question of capitalist triumphalism. (That isn't a term that she uses, but it seems descriptive.) She locates her analysis within the "varieties of capitalism" field of scholarship, which maintains that there is not a single pathway of development for capitalist systems. "Coordinated" capitalism and neoliberal capitalism represent two poles of the space considered by the VofC literature.
From the beginning, the VofC literature challenged the idea that contemporary market pressures would drive a convergence on a single best or most efficient model of capitalism. (kl 228)
Thelen is interested in assessing the prospects for what she calls "egalitarian" capitalism -- the variants of capitalist political economy that feature redistribution, social welfare, and significant policy support for the less-well-off. She focuses on several key institutions -- industrial relations, vocational education and training, and labor market institutions, and she argues that these are particularly central for the historical issue of the development of capitalism towards harsher or gentler versions.…
A key finding in Thelen's analysis is that "coordinated" capitalism and "egalitarian" capitalism are not the same. Coordinated capitalism corresponds to the models associated with social democracies of the 1950s and 1960s, the "Nordic" model. But Thelen holds that egalitarian capitalism can take more innovative and flexible forms and may be a more durable alternative to neoliberal capitalism. 
Understanding Society
Thelen on the prospects for egalitarian capitalism
Daniel Little | Chancellor of the University of Michigan-Dearborn, Professor of Philosophy at UM-Dearborn and Professor of Sociology at UM-Ann Arbor

Capitalism is commonly misunderstood as being an economic system. Rather, it is a complex web of institutional arrangements the foundations of which are legal, hence, political. Difference in institutional arrangements result in varieties of capitalism.

Power is the underlying factor and not "capital," whatever than is. Those who/ve been paying attention to the Piketty "capital controversy" know that the debate hinges on the meaning of capital. The controversy reveals there is sharp divergence of views over capital.

Irrespective of how capital is defined, there are varieties of socio-economic theory and ideology that underly different political systems as determined by their legal arrangements. These result in varieties of ownership, distribution, and other socio-economic categories and classes. The economics follows from the institutional arrangements and these are political choices that ayer determined by power relationships.