http://youpayyourcrisis.blogspot.gr
by Zygmunt Bauman
That the disease which brought the European Union into the
intensive-care ward and has kept it there since, for quite a few years,
is best diagnosed as a ‘democratic deficit’ is fast turning into a
commonplace. Indeed, it is taken increasingly for granted and is hardly
ever seriously questioned. Some observers and analysts ascribe the
illness to an inborn organic defect, some others seek carriers of the
disease among the personalities of the European Council and the
constituencies they represent; some believe the disease has by
now become terminal and beyond treatment, some others trust that a bold
and harsh surgical intervention may yet save the patient from agony. But
hardly anyone questions the diagnosis. All, or nearly all, agree that
the roots of the malaise lie in the breakdown of communication between
the holders of political offices (policy-makers in Brussels and/or the
politicians of European Council) who set the tune and the people called
to follow the set score with or without being asked and offering their
consent.
At least there is no deficit of arguments to support the diagnosis of
the ‘deficit of democracy’ inside the European Union. The state of the
Union, no doubt, calls for intensive care, and its future – the very
chance of its survival – lies in a balance. Such a condition we call,
since the ancient beginnings of medical practice, ‘crisis’. The term was
coined to denote precisely such a moment – in which the doctor faces
the necessity to urgently decide to which of the known and available
assortment of medical expedients to resort in order to nudge the patient
onto the course to convalescence. When speaking of crisis of whatever
nature, including the economic, we convey firstly the feeling of uncertainty, of our ignorance of the direction in which the affairs are about to turn – and secondly the urge to intervene: to select the right measures and decideto
apply them promptly. Describing a situation as ‘critical’, we mean just
that: the conjunction of a diagnosis and a call for action. And let me
add that there is a hint of endemic contradiction in such an idea: after
all, the admission of the state of uncertainty/ignorance portends ill
for the chance of selecting the right measures and prompting the affairs
in the desired direction.
Let’s focus on the most recent economic crisis largely responsible for laying bare the critical state of the political union
of Europe. The right point to start is to remember the horrors of the
1920s-1930s by which all and every one of successive issues of the
economy have tended to be measured since – and ask whether the current,
post credit-collapse crisis can be seen and described as their
reiteration, throwing thereby some light on its likely sequel. While
admitting that there are numerous striking similarities between the two
crises and their manifestations (first and foremost massive and
prospectless unemployment and soaring social inequality), there is,
however, one crucial difference between the two that sets them apart and
renders comparing one to the other questionable, to say the least.
While horrified by the sight of markets running wild and causing
fortunes together with workplaces to evaporate and while knocking off
viable businesses into bankruptcy, victims of the late 1920s
stock-exchange collapse had little doubt as to where to look for rescue:
of course to the state – to a strong state, so strong as to be
able to force the course of affairs into obedience with its will.
Opinions as to the best way out of the predicament might have differed,
even drastically, but there was virtually no disagreement as to who was
fit to tackle the challenge thanks to being sufficiently resourceful to
push the affairs the way the opinion-makers eventually selected: of
course the state, equipped with both resources indispensable for the job: power(ability to have things done), and politics (ability
to decide which ones of the proposed things ought to be given
priority). Alongside the overwhelming majority of the informed or
intuitive opinions of the time, John Maynard Keynes put his wager on the
resourcefulness of the state. His recommendations made sense in as far
as the ‘really existing’ states could rise to such popular expectations.
And indeed, the aftermath of the collapse stretched to its limits the
same post-Westphalian model of a state armed with absolute and
indivisible sovereignty over its territory and on everything it contains
– even if in the direction as diverse as the Soviet state-managed,
German state-regulated and US state-stimulated economies.
This post-Westphalian ideal type of an omnipotent territorial state
emerged from the war not only unscathed, but considerably expanded to
match the comprehensive ambitions of a ‘social state’ – a state insuring
all its citizens against individual misfortune (selectively striking
caprices of fate) and the threat of indignity in whatever form (of
poverty, negative discrimination, unemployment, homelessness, social
exclusion) that haunted pre-war generations. It was also adopted, even
if in a somewhat cut-down rendition, by numerous new states and
quasi-states emerging amidst the ruins of colonial empires. The
‘glorious thirty’ of years that followed the war were marked by the
rising expectations that all harrowing social problems had been or were
about to be resolved and left behind; and the tormenting memories of
pre-war poverty and mass unemployment were about to be buried once for
all.
Something largely unforeseen happened, however, that jostled most of the
Europeans off the then selected track. In the 1970s the heretofore
uninterrupted economic progress ground to a halt and was supplanted by a
seemingly unstoppable rise in unemployment, seemingly unmanageable
inflation and above all the growing and ever more evident inability of
the states to deliver on their promise of comprehensive insurance.
Gradually yet ever more starkly, states manifested their inability to
deliver on their promises. Gradually, but apparently unrelentlessly, the
faith and trust in the potency of the state started to erode. Functions
claimed heretofore and jealously guarded by the states as their
monopoly and widely considered by the public and the most influential
opinion makers and guardians of common sense as the state’s inalienable
obligation and mission seemed suddenly too heavy for nation states to
carry. Peter Drucker famously declared that people need, should and shortly will abandon
hopes of salvation descending ‘from above’ – from the state or society;
the number of ears keen to absorb that message grew at accelerating
pace. In the popular perception, aided and abetted by the chorus of a
fast growing part of the learned and opinion making public, the state
was degraded from the rank of the most powerful engine of universal
well-being to that of a most obnoxious and annoying obstacle to economic
progress and indeed efficiency of human enterprise.
Just as during the Great Depression of 1920s-1930s, the opinion setters
as well as the widening circles of the general public deemed to know this
time what kind of vehicles are called for to replace the extant ones,
not so long ago viewed as trusty yet increasingly rusty and overdue for a
scrap yard. Once more, it seemed to be obvious as well what kind of
powerful force is destined, willing and able to lead the way out of the
current crisis. This time, however, public trust was all but withdrawn
from the political state only to be reinvested in the ‘invisible hand of
the market’ – and indeed (as Milton Friedman, Ronald Reagan, Margaret
Thatcher and the fast expanding bevy of their enthusiastic acolytes kept
hammering home) it is the market ability of unerring knack for spotting
profit chances that would accomplish what the ethics-inspired state
bureaucrats abominably failed to achieve. ‘Deregulation’,
‘privatization’, ‘subsidiarization’ were to bring what regulation,
nationalization and the communal, state-guided undertakings so obviously
and abominably failed to deliver. State functions had to be and were to
be shifted sideways, to the market, that admittedly ‘politics-free’
zone, or dropped downwards, onto the shoulders of human individuals, now
expected to divine individually, inspired and set in motion by their
greed, what they did not manage to produce collectively, inspired and
moved by communal spirit.
The ‘glorious thirty’ were therefore followed by the ‘opulent thirty’;
the years of a consumerist orgy and continuous, seemingly unstoppable
growth of GNP indices all over the place. The wager put on pursuit of
profits seemed to be paying off: its benefits, as later transpired, came
into view much earlier than its costs. It took us a couple of dozens of
years to find out what fuelled the consumerist miracle: not so much the
magic ‘invisible hand of the market’, as the discovery by the banks and
the credit card issuers of a vast virgin land open to and yelling for
exploitation: a land populated by millions of people indoctrinated by
the precepts of ‘saving-books culture’ and still in the throes of the
puritan commandment to desist the temptation of spending money,
particularly its unearned variety. And it took yet a few years more to
awaken to the sombre truth that initially fabulous returns of investing
in virgin lands must soon reach their natural limits, run out of steam
and eventually stop coming altogether. When that ultimately happened,
the bubble burst and the fata morgana of perpetual and infinitely
expanding opulence vanished from view under the sky covered with dark
clouds of prospectless redundancy, bankruptcies, infinite
debt-repayment, a drastic fall in living standards, the curtailing of
life ambitions – and of social degradation of the upward-looking middle
classes to the status of defenceless ‘precariat’.
Another crisis of another agency, then? A collapse of one more vehicle
in which the hope of the ‘economic progress’ perpetuum mobile had been
invested? Yes, but this time with a difference – and a fateful, seminal
one. As in the previous cases, old vehicles of ‘progress’ appear today
to be overdue for the scrap heap, but there is no promising invention in
sight in which one could reinvest the hope of carrying the rudderless
victims out of trouble. After the loss of public trust in the wisdom and
potency of the state, the turn has come of the dexterity of the
‘invisible hand of the market’ to lose credibility. While almost every
one of the old ways of doing things lies discredited, the new ways are –
at best – at the drawing board or an early experimentation stage. No
one can swear, hand on heart, the effectiveness of any of the latter.
Too well aware of the hopes that failed, we have no hopeful runners-up
to bet on. Crisis being the time of deciding what way of proceeding to
choose, in the arsenal of human experience there seem to be no
trustworthy strategies left to choose from.
We are now painfully aware, at least for a moment and until the human,
all-too-human, therapy-through-forgetting will have done its job, that
if left to their own devices the profit-guided markets lead to economic
and social catastrophes. But should we – and above all could we –
return to the once deployed yet now unemployed or under-employed
devices of state supervision, control, regulation and management?
Whether we should, is obviously a moot question. What is well-nigh certain, however, is that we couldn’t –
whatever answer we choose to that question. We couldn’t because the
state is no longer what it used to be a hundred years ago, or what it
was believed/hoped then soon to become. In its present condition, the
state lacks the means and resources to perform the task which effective
supervision and control of the markets, not to mention their regulation
and management, required.
Trust in the state’s capacity to deliver rested on the supposition that
both conditions of effective management of social realities – power and
politics – are in the hands of states assumed to be a sovereign
(exclusive and indivisible) master within its territorial boundaries. By
now, however, the state has been expropriated of a large and growing
part of its past genuine or imputed power, which has been captured by
the supra-state, for all practical intents exterritorial global forces
operating in a politically uncontrolled ‘space of flows’ (Manuel
Castells’ term), whereas the effective reach of the extant political
agencies did not progress beyond the state boundaries. Which means,
purely and simply, that finance, investment capital, labour markets or
circulation of commodities are beyond the remit and reach of the only
political agencies currently available to do the job of supervision and
regulation. It is the politics chronically afflicted with the deficit of
power (and so also of coercion) that confronts the challenge of powers
emancipated from political control.
To cut the long story short: the present crisis differs from its
historical precedents in as far as it is lived through in the situation
of a divorce between power and politics. That divorce results in
the absence of agency able to do what every ‘crisis’ by definition
requires: choose the way to proceed and apply the therapy which that
choice calls for. The absence, it looks, will continue to paralyse the
search for a viable solution until power and politics, now in the state
of divorce, are re-married. It also looks, however, that under
conditions of global interdependence such a remarriage is hardly
conceivable inside one state, however large and resourceful; or even
inside an aggregate of states, as long as power is free to abandon at
will and without notice any territory politically monitored and
controlled by political units clutching to the ghosts of
post-Westphalian illusions. It looks like we are facing now the awesome
yet imperative task of raising politics and its institutions to the
global level, on which large part of effective power to have things done
already resides. All pressures, from brutally mundane to sublimely
philosophical, whether derived from survival interests or dictated by
ethical duty, tend to point nowadays in the same direction – however
little we have thus far advanced on the road leading there. Inside the
European Union, a half-way inn on that road, those pressures feel more severe and pain more than in any other area of globalized planet.
Deficit of democracy is by no means a unique affliction of the European
Union. Every single democratic state – every political body that aims or
pretends to a full sovereign rule over its territory in the name of its
citizens and not by the will of a Machiavellian Prince or Schmittian
Führer – finds itself currently in a double bind, exposed to the
pressures of extraterritorial powers immune to the political will and
demands of the citizenship, which it can’t at any rate meet due to its
chronic deficit of power. With power and politics subject to separate
and mutually autonomous sets of interests, and state governments
tussling between two pressures impossible to reconcile, trust in the
ability and will of the political establishment to deliver on its
promise is fast fading, whereas communication between ruling elites and
the hoi polloi lies all but broken; election after election,
electors are guided by the frustration of their past hopes invested in
the currently ruling team – rather than by their preference for a
specific policy, or commitment and loyalty to a specific sector in the
spectrum of ideologies.
The European Union, as an aggregate of nation states charged statutorily
with the replacement of an inter-state competition with cooperation and
sharing, finds itself in a truly unenviable plight: a need to assume an
incongruous mix of mutually incompatible roles – of a protective shield
or a lightning rod intercepting and arresting, or at least attenuating,
the impact of powers freely roaming the global ‘space of flows’ and of
an enforcer pressing its member states to absorb the remainder of the
force of impact that resisted interception and managed to break in
through the outer circle of trenches. No wonder that the attitudes of
the member states’ populations to the Union’s policies tend to be and to
stay ambivalent, vacillating between the extremes of Hass and Liebe:
an attitude mirroring the persistent ambivalence of the two-in-one role
which the Union is bound to play more by the stark necessity it cannot
control than by a choice it is free to make.
There is little doubt that there is much room yearning for reform and
improvement in the Union’s ailing structures struggling for a modicum of
coherence under the condition of unmitigated ambivalence. There is,
however, only so much which the most ingenious reforms can achieve as
long as they are considered and handled as a solely internal European
affair. The roots of Europe’s problems – dis-coordination of power and
politics brought about by globality of powers confronting locally
confided and territorially constricted politics – lie far beyond
Europe’s control. The problems Europe faces can be alleviated but hardly
can they be fully resolved and prevented from rebounding unless the
power and politics presently separated and in the state of divorce are
brought back into wedlock and forced to work in tandem.
And so, in the case of badly needed and urgently demanded constitutional
adjustment, quick fixes – let alone ultimate and lasting solutions to
the current problems – are unlikely to be found and put in place.
Whatever else the sought-after reform of the Union will be, it can’t be a
one-off deed, but only a process of perpetual reinvention. This is the
‘hard fact’ reality we have little choice but to accept and consider in
our thoughts and actions.
And there is something else we need to consider and focus our thoughts
and actions on. Whether we are aware of it or not, and whether by design
or by default, the European Union is a laboratory (if not unique, then
surely the currently most advanced on a global scale) in which ways to
deal with the outcomes of present dis-coordination of power and politics
are designed, explored and put to tests. This is, arguably, the most
important and consequential among Europe’s current contributions to the
condition and prospects of the planet; indeed, to its chances of
survival. Europe’s present quandary anticipates the challenges which the
rest of the planet – the whole of the planet and all of its inhabitants
– are bound, sooner or later, to experience first-hand, face up to and
live through. Our present pains may yet (are destined to?) prove to be
the birth pangs of a humanity at peace with itself and drawing proper
conclusions from the demands of its new – irreversibly globalized –
condition. What presently feels like an unbearably hurtful squeeze of a
vice may yet be found in retrospect to have been severe, yet transient
pain inflicted by forceps wresting salvation out of an impending doom.
To keep that in mind is our, Europeans, joint responsibility.
ΠΗΓΗ: Social Europe Journal
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