283. What answer to populism?
There is a pressing need to give an answer to the
rising populist revolt, in Western countries. There are legitimate grievances
behind it, and when left unanswered, they make society vulnerable to a takeover
by demagogues that destroys justice and democracy, and is beginning to reek of
a new brew of fascism. So, what can we learn from populism?
In my view, this revolt has the following grounds.
First, the lower paid and educated classes feel that
they have suffered more setbacks than benefits from globalized trade, in
large contrast to the increase of income, wealth and power of higher paid and
educated classes. This injustice is not addressed, and seems to be excused as
the inevitable side-effects of the blessings of free trade.
Second, people are angry that multinational firms
successfully press national governments for extending advantages (in taxes, exceptions
to regulation, e.g. for protection of the environment, energy subsidies,
premiums for locating businesses, etc.), on the threat of locating activities
elsewhere. In particular, the EU is seen as being there for the sake of markets
rather than for justice for the people. This also contributes to distrust
of markets and free trade.
Third, people feel that they have no grip, no
influence on what is going on, and consequently lose their faith in democracy.
They also feel a loss of social coherence and shared cultural identity. This
provides a breeding ground for renewed nationalism.
To address these grievances, I have three proposals.
First, concerning the inequality of benefits from global trade between the lower and the higher paid and educated, the lesson is not, in my view, to abolish international trade, but to compensate for the inequality of its effects.
Second, build countervailing power regarding
multinationals who take nations hostage. There are also other issues that
require bundling in supranational integration, as in the EU: concerning foreign
policy, defence, refugees, the environment, security (anti-terrorism), and
international crime.
Here also lies an opportunity for the EU to regain
acceptance and allegiance by proving it is there not only for the market but
for the people. The going of this will be tough, against present ill feeling
against the EU, partly as a result of its one-sided focus on facilitating
markets. The EU is already making moves in this direction, in its policies
concerning banking and taxes.
Third, as I proposed in the preceding item in this
blog, utilize present opportunities from technology and higher levels of
education to decentralize many decisions and designs in policy and projects to
the local level of communities, in towns or city quarters, for local debate on
ethics and morality, in closer, more personal contacts for building trust and
mutual understanding and tolerance in collaboration.
These proposals entail that the grasp of nations
becomes less, in a surrender of competencies to on the one hand supranational
collaboration, as in the EU, and on the other hand decentralization of
initiatives within nations to localities.
A complication is that release to local initiatives
will not only profit from local variety but will also generate inequality of
outcomes. Maintaining a demand of strict equality everywhere will kill variety
and space for local initiative. A second complication is that release to local
initiative may generate local clientism and corruption, with power
concentrating in local bobo’s and their entourage.
Here, there remain tasks on the national level, not only for issues and projects that transcend localities (jurisdiction, security, transportation, ….), but for preventing excessive inequalities and local clientism.
All this is needed as an answer to the present
populist revolt in Western countries.
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