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FOUNDATION FOR EUROPEAN PROGRESSIVE STUDIES

Fabrizio Barca James K. Galbraith Avenue des Arts, 46 SPECIAL COVERAGE FOCUS Herbert Kitschelt 1000 Brussels - Belgium Cécile Kyenge Beyond capitalism Towards a new multilateralism Evgeny Morozov +32 (0)2 234 69 00 Ann Pettifor [email protected] Juan Somavía DOSSIER DOSSIER Neera Tanden www.feps-europe.eu Chile: 50 years after Allende's victory Roma: towards a new EU framework Mario Telò … ISSN 2506-7362 www.progressivepost.eu 3.00 € ProgressiveThe Post

The Progressive Post is the political magazine run by the Foundation for European Progressive Studies (FEPS), gathering renowned thinkers, experts and activists from the world of politics, academia and civil society, providing a critical analysis of policies, and clarifying options and opportunities for elected leaders.

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N°14 - Autumn 2020 ISSN 2506-7362 EDITORIAL The Progressive Post #14

Moving beyond current multilateralism – and beyond current capitalism by Maria João Rodrigues, FEPS President

The United Nations is currently celebrating its will probably be a turning point shaping the 75th anniversary. The backdrop of these cele- emerging new global order! brations however is bleak: some world powers knowingly sabotage multilateralism, and the If the Covid-19 crisis has been a hard reminder escalating global crises – health, climate and of how international our challenges are, and economic downturn to name just a few – have thus of how the answers must be too, it also led to a further deterioration of the United highlights that the current neoliberalism-domi- Nations system that was created in the wake of nated capitalism is in deep crisis. Similar to the World War II. If it needed a reminder, the Covid- current architecture of multilateralism, today’s 19 pandemic has made it blatantly clear that capitalism is less and less capable of keep- our most critical challenges are transnational ing the promises that were its very reason and can only be addressed through coordi- for existence: shared growth and prosperity nated action. But the gap keeps widening for everyone. Instead, in its globalised and between our shared challenges and the capac- financialised form, built on shaky foundations ity of global governance to meet them. of debts and credit, it is pushing the planet's ecosystem to a collapse. The rich are getting With this issue, The Progressive Post wants to richer while the poor are getting poorer. congratulate the United Nations on its anniver- sary, and wants to celebrate multilateralism, but That is why this issue's Special Coverage it also wants to seize this unique opportunity to wants to move beyond capitalism and initiate make proposals for rebuilding and reforming a larger debate on the objectives of economic, the multilateral architecture. environmental, social, digital, and regional policy. The aim is a paradigm-change to over- In this issue's Focus, our authors explore how come the dominant neo-liberal approach. this new multilateralism could be put together. An increased role for regional organisations Our contributions call for an urgent U-turn could make the UN system more agile and towards social and environmental justice, efficient – with an important role for the but they also show that this can be financed European Union, not only in a future architec- – and how. And again, citizens need a role ture of multilateralism, but as a driver in the here, not least in regional policy, otherwise transition. Citizens should play a greater role, we face revenge from 'places that don't for instance with a World Citizens’ Initiative, matter'. But citizens need a role in the comparable to the European Citizens' Initiative. online arena too, and here we look at citi- zens' digital empowerment, rooted in Social Make no mistake: this is a make-or-break Democratic values: solidarity, cooperation moment for international cooperation, and it and social justice.

1 - CONTENT ProgressiveThe #14 ContentsPost

CURRENT AFFAIRS SPECIAL COVERAGE

State of the European Union Beyond capitalism

4 A too Teutonic talk 20 What digital future for what by László Andor Social Democracy? by Evgeny Morozov MFF / Covid / Recovery 24 Radically transforming the EU 8 Rethinking economic economy – and how to finance it reconstruction in Europe by Ann Pettifor by Lukas Hochscheidt, Judith Vorbach and Susanne Wixforth 30 The revenge of the ‘places that don't matter’ 10 A new algorithm for by Andrés Rodríguez-Pose European solidarity by Maria João Rodrigues 34 The time for a U-turn towards social and environmental 12 The EU and Covid-19: justice is now what we have learned so far by Fabrizio Barca by László Andor

Racism/ US

16 With the groan of a man, George Floyd, humanity shivers with racism, so does Europe by Cécile Kyenge

18 Black Lives Matter: a new moment for transformation by Neera Tanden

- 2 The Progressive Post #14

FOCUS DOSSIERS INTERVIEW

A new multilateralism Chile: 50 years after The transformation of Allende's victory European Social Democracy 38 The 75th anniversary of the United Nations: the urgently needed 50 Salvador Allende: 66 "The decline of the centre-right has reforms and their enemies his ethical, social and been at least as prominent as that by Maro Telò democratic legacy of the centre-left" by Marcela Ahumada Interview with Herbert Kitschelt 40 Making the UN more by Tarik Abou-Chadi inclusive and democratic 52 Salvador Allende: by Jo Leinen respect for the world by Juan Somavía 42 Strengthening the EU’s role in the UN Security Council today 54 Urban development in by Nico Schrijver Allende’s Chile: going up! LIBRARY by Genaro Cuadros Ibáñez 45 Regional organisations and UN reform: Roma: towards a new Book reviews towards Multilateralism 2.0 EU framework by Luk Van Langenhove 70 Trade wars are not 56 Roma Integration: civic equality people's wars 48 What should be done or ethnic empowerment? by Alvaro Oleart about the United Nations? by Martin Kovats by Maria João Rodrigues and Conny Reuter 72 Automation: a boon 58 The EU Roma policy. or bane for workers? Background and functioning by Justin Nogarede

62 Who are the Roma? 74 The pandemic and capitalism by Elena Marushiakova and Vesselin Popov by James K. Galbraith

64 EU Roma Framework: listening first! by Iulius Rostas

3 - CURRENT AFFAIRS STATE OF THE EUROPEAN UNION

A too Teutonic talk EC President Ursula von der Leyen's first speech on the State of the European Union by László Andor

As we learned from the great British historian Eric Hobsbawm, tradition is something that is invented. The tradition of State of the Union speeches by the European Commission president was invented in 2010, in the wake of the great financial crisis. It has always provided a panorama of EU-policies, sending open or encrypted messages about priorities and concerns and endeavouring to rally parliamentarians and other stakeholders to tackle the key challenges of the time. It also became the annual exercise to highlight the real opportunities and initiatives to move ahead with integration, and in which unfortunate fields the Commission is only aiming managing expectations.

n the year of the coronavirus, the State of maelstrom of COVID-19: we will cope with this, through at least on three accounts: when von Ithe European Union speech (SOTEU) had to we will control this, and we will recover even der Leyen spoke about migration towards tackle the pandemic first and foremost. EU stronger. Objectively, this message is not false, the end (to remain true to the origin of the Commission President Ursula von der Leyen since April, the EU has displayed a host of bold expression), but also when she elaborated on took the royal road to thank all frontline work- and forward-looking measures. However, while the COVID-19 crisis, and at great length when ers of Europe, and gave a positive response to Merkel had already entered the Pantheon of she outlined the vision, ambition and targets the July decision of the European Parliament politics for proving her opponents wrong, to tackle climate challenge. to create a Health Union. Remember that von der Leyen is still at the beginning of her until recently those who wanted to shrink the European journey. Her speech appeared less The speech was about projecting European Brussels bureaucracy routinely pointed to titanic and more Teutonic than necessary. confidence, but a most important under- the health portfolio as one to be culled in the tone was about the German origins of the absence of real competences. Now, it is the With von der Leyen, Manfred Weber and Ska crisis response on various fronts. This was realm of a real breakthrough. Keller in the roles of the lead speakers, and more than appropriate when von der Leyen Michael Roth playing himself at the end (as proudly highlighted the newly created instru- If a motto were to be found behind von der Europe minister representing the German ment, called SURE, providing EU financed Leyen’s rhetoric, it would be: "wir schaffen presidency), this EP-plenary looked like a loans for the implementation of Kurzarbeit das". What was said by Angela Merkel in 2015 proxy Bundestag, with visiting southern (short-time work) schemes. To convince the amidst the dramatic refugee crisis, is now the Socialists like David Sassoli and Iratxe Garcia audience that the vehicle she is selling surely underlying philosophy of von der Leyen in the Perez. The spirit of Wir schaffen das came works, she explicitly referred to her time as

- 4 The Progressive Post #14

German minister of employment. She even Chicago as New Bauhaus and promising a new not have been sufficiently convincing for the doubled down by extending the sales exer- European edition today might signal the birth MEPs, especially for those who already were cise to the minimum wage (which in reality of a brand comparable to Erasmus. (It may of present during the debates on the Tavares was only introduced in Germany after she course also happen that this becomes a quickly Report and the Sargentini Report. moved from employment to the defence port- forgotten bon mot.) folio and the Social Democrat Andrea Nahles Von der Leyen’s speech was detailed but bor- took over at Wilhelmstraße). With a Europe built out of Kurzarbeit, ing on economics, presenting this chapter as Rechtsstaat and Bauhaus, nothing can a kind of business plan. The single market is go wrong. Still, reactions to the speech, an opportunity, and the free movement must including that from Iratxe García Pérez, be restored as soon as possible, amended by  If a motto were to be rightly asked the question where the social a new strategy for the future of the Schengen found behind von der dimension was. Did the Commission President area. Only after the industrial strategy, the Leyen’s rhetoric, it would notice that the coronavirus caused not only a President came to the question of climate, be: "wir schaffen das." health crisis but also a social one, and that an where everybody expected the announcement anti-poverty strategy would be timely? of the only concrete target. And it came indeed, with an increased emission reduction target to For sure, the minimum wage is more than a at least 55%. But don’t worry: this will create On the other hand, it was not entirely appro- strategic initiative, but the Child Guarantee millions of extra jobs! (Those who think this is a priate to highlight the German connection should not just be left on the roadside. new idea will find that in the 2010 speech the when the speech come to the question of This reductionism was not just accidental. then EC president José Manuel Barroso envis- the rule of law, and von der Leyen invoked One should not forget that originally von aged 3 million green jobs by 2020). Mentioning Walter Hallstein, the only previous German der Leyen wanted Nicolas Schmit to be a that 37% of Next Generation EU spending will Commission President (1958-67). While it is Commissioner for Jobs only, and that Social serve the Green Deal was an answer to those true that the word Rechtsstaat (rule of law) was Rights were added to his title at the insist- asking where the money for the necessary introduced in Germany over two hundred years ence of the Socialists and Democrats. This investment is coming from since last summer. ago, and that despite contradictory episodes omission is rooted in a certain German ide- the concept somehow survived in the country ology, which recognises the importance of of origin, the way Hallstein popularised the EU level employment policy (to the extent term 'community of law' was not primarily about it helps feeding the labour demand of  With a Europe built out of the quality of democracy, and the functioning the Mittelstand by boosting mobility), Kurzarbeit, Rechtsstaat and of checks and balances, within the Member but rejects the EU role in social policy, Bauhaus, nothing can go States. It rather was a way to underscore the and in particular in ensuring the access wrong. Still, reactions to role of law in the European project, which has of migrant workers to equal social rights the speech, including that been described by political scientists precisely and standards. from Iratxe García Pérez, as 'integration through law'. rightly asked where the A similar omission or superficial approach social dimension was Where von der Leyen managed to be sur- could be observed on the question of the prisingly inspirational with an unexpected rule of law. Von der Leyen clarified that the German reference was the unveiling of the name of the game is to protect the "money idea of a New European Bauhaus. This should from our budget", without even hinting to the The speech was meant to be strong and not only appeal to design nerds, but to every- need to protect the people in the countries detailed on technology, innovation, artificial body who is sick and tired of references to the that are hijacked by aspiring dictators. We intelligence, and digitalisation. It spoke about Californian Silicon Valley, supposed to make have to acknowledge that she went beyond common data collection (especially in the fields Europe feel inferior, and aspiring for deregula- mentioning fraud, corruption and conflict of energy and health care) and mentioned a tion and venture capital. The Bauhaus school of interest, and added issues concerning European cloud service. It highlighted the defi- was indeed a remarkable centre of European the freedom of press, the independence of cits of broadband access in rural areas and, creativity in the interwar years, until the Nazis judiciary, and the sale of golden passports without mentioning China, spoke about the found it too cosmopolitan and evicted the art- as controversial ones. However, speaking digital sovereignty of Europe. It also stressed ists first from Dessau and then also from Berlin. about "prevention" after so many years of that our high-tech should be home made. But László Moholy-Nagy relaunched the project in degeneration in Hungary and Poland, may interestingly it managed to evade even the

5 - CURRENT AFFAIRS STATE OF THE EUROPEAN UNION

slightest allusion to the social problems cre- and the role of labour standards there, the Jean-Claude Juncker's best SOTEU speech ated or exacerbated by the platform economy. President alluded to another important part was in 2017 (when, among other post-Brexit Similarly, on the Economic and Monetary Union of the German presidency agenda: addressing initiatives, he announced the European Labour (EMU), it was reassuring that von der Leyen did the social dimension of supply chains. Authority), following almost three years when not forget about the need to complete it. But the Commission’s main preoccupation was to she stopped at the Capital Markets Union and Messages in political speeches can be deliv- make the work program slimmer and deliver as the Banking Union (implicit support for deposit ered simply by smart sequencing. Arriving to few initiatives as possible. insurance) and, even with Next Generation EU Brexit at the very end was a strong message to under her belt, failed to stretch to the question of Boris Johnson. Affection for the British people This first SOTEU speech by von der Leyen genuine fiscal capacity. This is certainly not just a was explicitly voiced, together with the concern exposed her as still in transition from a hobby horse of the Progressives (and Macron): that Downing Street's behaviour is increasingly CDU-minister to becoming a genuine EU the President could also consult her CDU friend likely to lead to no deal, and to aggravate the leader. Hopefully, the best of von der Leyen Reimer Böge, who was co-rapporteur on this loose-loose nature of Brexit. as Commission President lies still ahead. In matter in the previous European Parliament. future speeches she might present less the- On the other hand, she managed to surprise atrical hand gestures and avoid saying "safe on the question of racial equality – surely a heaven" instead of "safe haven". signal to those who might consider the Brussels  This first SOTEU speech by bureaucracy inward-looking. Inspired by the von der Leyen exposed her Black Lives Matter movement, the President as still in transition from a recognised that Europe also has a lot to do in CDU-minister to becoming this field. The fight against discrimination can a genuine EU leader. become meaningful by paying equal attention to immigrant communities as well as to seg- regated Roma minorities. Appointing the very first anti-racism coordinator in order to give Von der Leyen’s first SOTEU speech was this issue priority can be a game changer. An detailed but not really striking on global open question is however, why these matters affairs. She managed to condemn iso- were overlooked last year, when von der Leyen lationism, destabilising tendencies, and appointed commissioners for justice, rule of law self-serving propaganda without mentioning and values, as well as democracy and demog- Donald Trump. And she said that the Western raphy (not forgetting the one that is supposed Balkans should not just be a stopover on to promote the 'European way of life'). the Silk Road, without, again, explicitly chal- lenging China. With a timely reference to the Since everything is under control, there is 75-year-old United Nations, she expressed no need to invent further fora for discus- László Andor, FEPS Secretary General commitment to the multilateral system, but sion, the President may believe. The very mentioned the need for reform as well. She lukewarm approach she displayed towards expressed desire for de-escalation in the the conference on the Future of Europe (only Eastern Mediterranean and for a new part- one positive mentioning, linked to the Health nership with Africa. Union) gave the impression of deliberately displeasing the Parliament, as if the speaker A hidden gem of the speech was on the just flew in from Berlin. But there is time and importance of open and fair trade in the room for improvement. Arguably, Barroso’s world. This apparently was not a slip of the best SOTEU speech was delivered in 2012, tongue, since von der Leyen stressed that when he found himself in competition with the just globalisation is something we cannot president of the European Council, Herman take for granted. In this context she said that van Rompuy, to lead the reform of the EMU, the mission of the EU is creating prosperity at as well as with Mario Draghi who caught the home while promoting values and standards limelight and the imagination by promising abroad. By mentioning the Vietnam trade deal to do whatever it takes to save the euro. And

- 6 FEPS TALKS

Series of podcasts related with the research and policy activity of the Foundation or European Progressive Studies (FEPS)

One year of FEPS Talks podcast: more than 50 top level thinkers have already been interviewed!

Podcasts available on Spotify, Google Podcasts, Apple Podcasts and Deezer CURRENT AFFAIRS MFF / COVID / RECOVERY

Rethinking economic reconstruction in Europe by Lukas Hochscheidt, Judith Vorbach and Susanne Wixforth

Only a true paradigm shift can make Europe’s economies crisis-proof and address the increasing wealth gaps. The European Union needs to turn away from restrictive fiscal rules, and expand its own resources as well as public investment.

he famous board game Monopoly teaches be European and global phenomena. Even deprived from upward convergence and con- Tchildren the driving principles of mod- though they do not hit all Member States in the fronted with increasing poverty and inequality ern-day capitalism from the earliest age: to same way, they still weaken the European pro- in their own countries are asking themselves, win the game, one must have more than the ject as a whole. Europe needs more solidarity: ‘why should we support the others before others. One rule is of paramount importance: the promise of upward social convergence helping ourselves?’ when everything goes wrong, you just "pass between Member States must be kept. In Go" and the game starts again with new addition, the Union must fight inequalities The debate about imbalances between luck and fresh money. However, recreating within Member States by creating minimum Member States, important as it is, tends to equal conditions by "passing Go" only works standards for social security and strengthen- overlap fundamental questions about fair in board games. In real life, rising inequali- ing the Member States’ revenue side. Europe distribution within our societies. The gap ties end up in wealth accumulation for some needs more own resources – but it also needs between income and wealth is increasing and bankruptcy for others. In Europe, social its Member States to finance themselves dramatically in many EU Member States. In inequality has been growing continuously through taxation rather than depending on Germany, for example, the richest one per since the 1980s. More than half of the financial markets. cent possesses more than 30 per cent of wealth in the eurozone is concentrated the overall German private property. The in the hands of the richest 10 per cent. At The architecture of the Economic and risk of poverty and the number of poor peo- the same time, millions of Europeans suffer Monetary Union remains incomplete. While ple is increasing all over Europe. In Germany from badly equipped health and social secu- the monetary integration of the eurozone is 15.5 per cent of the population lives in poverty. rity systems, as well as unemployment and fully accomplished, the euro countries still poverty. To reduce the deepening wealth gap pursue their own fiscal and economic policies. between Member States, we need to change This leads to a race to the bottom in which the rules of European economic governance Member States bargain with lower levels of FUTURE-PROOF STRUCTURES fundamentally. taxation, social protection and wage costs in order to attract companies. Instead of eco- To counter this dangerous trend, we need nomic and social cohesion – as pledged by to create resilient and solidarity-based Article 3 of the Treaty on European Union – structures which meet two main criteria: the LESSONS FROM CORONAVIRUS the neglected question of redistribution inside structures must stabilise the Union in times the Member States translates into decreas- of crisis and consolidate social protection in The Covid-19 pandemic has shown once ing solidarity between them, especially in the the Member States. more that the EU lacks resilience in times eurozone. Social inequalities and wealth of crisis. The crises of the future – be they gaps undermine peoples’ trust in European This dual function could be fulfilled by a economic, financial or pandemic crises – will cooperation. More and more Europeans European unemployment reinsurance

- 8 The Progressive Post #14

scheme. On the one hand, this mechanism  Europe needs a fresh start then ensure that all Member States, including would act as an automatic stabiliser which for its economic governance, those with high debt ratios, are able to make backs up national unemployment insurance focusing on sustainable and the necessary future investment and contribute systems in case of major recessions. On the inclusive growth as well as to the overarching goals of the EU. other hand, the reinsurance scheme would the fair distribution of wealth. sustainably strengthen the Member States’ Protecting and creating public goods for all unemployment systems by linking its grants Europeans must be the core of our political to the condition that national schemes are reasoning: strengthening social infrastructure, financed in a robust and solidarity-based In addition, the instruments described above education, childcare, research and develop- way. The temporary Support to mitigate can only develop their stabilising effects when ment as well as a European agenda for public Unemployment Risks in an Emergency (SURE) they overcome the unequal possibilities of health crises. the European Commission and Council have Member States to support their economies in agreed upon is a first step in this direction times of crisis. These instruments must there- but cannot replace the initial idea of a rein- fore be financed by European own resources. surance scheme: SURE is entirely based While there has been some debate on how to SHAPING THE FUTURE on loans (instead of grants) and it merely generate the required funds – be it through protects already existing jobs (by backing corona-recovery-bonds, perpetual bonds or The success of these ideas will greatly depend national short-time work schemes). An existing mechanisms like the European Stability on who is going to be involved in the relevant unemployment reinsurance scheme, on Mechanism – the importance of European own decisions. As the situation currently stands, the the other hand, could act as a macroe- resources and therefore fiscal capacities has price of an economic recession is once again conomic stabiliser when unemployment been underestimated. The proposals under being paid by those who suffer most from starts skyrocketing. consideration (like single market levy, a sim- the crisis: workers, young people, and the plified VAT, plastic taxes, a carbon border unemployed. In order for them to have their Another instrument capable of stabilising and adjustment mechanism, digital taxes, wealth say in European politics, trade unions need to creating helpful conditionality is a common taxes or a common consolidated corporate participate more actively in economic policy European debt mechanism or, as proposed by tax base and minimum tax rate) would not only decisions. The Conference on the Future of the Spanish government, perpetual bonds. Fair help fight tax evasion but also open up unprec- Europe is a welcome opportunity to get people conditionality could lead to a new and crucial edented fiscal leeway for the EU. involved from across the continent to enhance step of European integration: completing eco- solidarity in Europe and to make it more just nomic governance with criteria for the revenue and resilient. Changing the European Treaties side, for example in the field of tax fraud and must not be taboo if that is what is needed. aggressive tax avoidance. PUBLIC GOODS FOR EUROPE

Moreover, the European economic model needs a strategy for public investment. FISCAL RESTART Despite the fact that the Covid-19 crisis has put our economies on hold, problems that we Fiscal policy is still the most delicate part of had prior to the pandemic will not disappear economic governance and needs to be fun- once it is over. The recovery measures must damentally reformed. The current fiscal rules therefore clearly address issues such as climate are too restrictive and deprive Member States change, digitalisation, increasing inequalities of the necessary leeway to react to the onset and demographics. Europe must seize the Lukas Hochscheidt, Research assistant in the Department of European and International Trade Union of recessions. The rules therefore exacerbate current crisis as an opportunity to imple- Policy at the German Trade Union Confederation (DGB) crises instead of preventing them. Now that ment comprehensive and transformative Member States have been allowed to use the public investment. This is only feasible if we Judith Vorbach, Senior advisor for European Policy at the Austrian Chamber of Labour (AK Oberösterreich) emergency clause to temporarily exit the rules, promote crucial investment via a ‘golden rule’, and member of the European Economic and Social Europe needs a fresh start for its economic which would allow Member States to exempt Council governance, focusing on sustainable and public investment in future-oriented projects – Susanne Wixforth, Head of unit in the Department inclusive growth as well as the fair distribu- such as the green and digital transformation of European and International Trade Union Policy tion of wealth. – from the European fiscal rules. This would at the German Trade Union Confederation (DGB)

9 - CURRENT AFFAIRS MFF / COVID / RECOVERY

A new algorithm for European solidarity by Maria João Rodrigues

It took a shocking world tragedy. It took the deepest recession since the second world war. It took the prospect of a downward spiral destroying many viable companies and jobs, fragmenting the European single market, and shaking the foundations of European integration. At dawn on 21 July, after the second longest meeting in its history (the meeting in Nice in December 2000 to prepare EU enlargement still being the longest) the European Council, with its 27 heads of state and government, succeeded in defining a new algorithm for European solidarity so that common systemic threats can be appropriately addressed and the way ahead paved for a long-term transformation.

fter a long and complex debate involving Deal and the European Pillar of Social not: pollution with plastics, border carbon tax Aall European and national political insti- Rights; or taxation of emissions trading system (ETS) tutions, this new algorithm for European allowances; a digital tax and, possibly, a finan- solidarity features a €750 billion Recovery • can disburse loans or grants, providing cial transaction tax. Fund, which: conditional redistribution to support the most affected regions, social groups, and We are thus a very long way from the algorithm • will be created swiftly to respond to the countries, as part of the European budget- of European solidarity that was invented ten Covid-19 crisis; ary capacity; years ago during the eurozone crisis. At that time, the algorithm was to correct countries’ • almost doubles the current EU budgetary • will be financed by an EU instrument man- behaviour by using the violence of specu- capacity as it needs to be robust enough aged by the European Commission, which lative financial markets betting against to counter the first wave of the recession, will borrow in the markets while benefiting these countries’ debt in order to force them while also taking account of the energetic from the high credit rating of the European to adopt structural reforms that reduced response from the European Central Bank; Union and managing a European deficit that wages, pensions, education, and social is to be absorbed in the long term. (It will protection. At the same time, the European • will operate through the EU budgetary insti- thus resemble the embryo of a European Stability Mechanism stood alongside to give tutional framework, giving the necessary treasury). the countries the minimum financial support guarantees of monitoring and accountability; to keep them afloat. Given that this recipe What is more, this common issuance of resulted in a double-dip recession for the • should be consistent with the long-term European debt will be backed by raising the Europe Union and triggered anti-European priorities already defined by the European ceiling of the EU’s own resources, and also by reactions in many countries, it seems the les- institutions: implementing the Sustainable creating new ones – not by charging citizens, son has now been learnt not to bring out the Development Goals, the European Green but by taxing those who behave as if they are austerity recipe again!

- 10 The Progressive Post #14

Nevertheless, there are no perfect agree- and will certainly be demanded by the ments, and several shortcomings and European Parliament in order to give its inconsistencies remain: consent to this whole new budgetary effort. New own resources are an indispensable  Ten years ago, the algorithm • the compliance of Member States with the condition for a European budgetary capacity was to correct countries’ rule of law to benefit from EU funds remains with the necessary ambition. behaviour by using the quite ambitious and flawed; violence of speculative Many new developments will therefore still financial markets betting • the principle of rebates for net contributors be at stake for this new algorithm to become against these countries’ remains so that they will be compensated, a reality. But what is sure is that European but this blurs the budgetary consistency; debt in order to force history is currently in the making. A new instrument of European sovereignty is today them to adopt structural • several European programmes that are cru- being invented to enable Europe to better reforms that reduced cial for the future of the EU have suffered shape and project its future. wages, pensions, education, severe cuts: Horizon, Erasmus, Digital, Child and social protection. Guarantee, Health, EU Invest, and Just Transition mechanisms. However, the cuts will have to be approved (and thus could be rejected) by the European Parliament using its co-decision competences;

• the higher ceiling of own resources still needs confirmation by national parliaments, Maria João Rodrigues, FEPS President

11 - CURRENT AFFAIRS MFF / COVID / RECOVERY

The EU and Covid-19: what we have learned so far by László Andor

Now that life has returned to the EU institutions and work has started again after the holiday season, it should be highlighted that the summer had not been wasted. Indeed, the European Council adopted critical, innovative and to some extent revolutionary decisions in July to create an effective fiscal capacity against the recession triggered by the Covid-19 pandemic. The main products of this fiscal capacity are the newly conceived anti-crisis fund (Next Generation EU), and the seven-year EU budget (multiannual financial framework, or MFF) to which the first is attached. These decisions have already been duly scrutinised and celebrated. Here I would therefore like to offer some further general observations regarding the effects of the pandemic on the EU.

CRISES ARE NATIONAL AND EU founding father Robert Schuman called it. Covid-19 has nevertheless reignited the debate RECOVERIES ARE EUROPEAN Furthermore, these crises have also exposed around the economic architecture of the EU, the EU’s focus as being to allow for free with a focus, once again, on the possibility The Covid-19 crisis has been another episode movement. Indeed, this is a central compo- of common fiscal capacity. In May 2020, the showing that practically all emergency and sta- nent of the single market. And yet while free Commission put forward an ambitious two-tier bilisation mechanisms are located at the national movement contributes to shared prosperity proposal that was, after modifications, adopted rather than European level. And what is more, in ‘normal times’, in ‘bad times’, when eco- by the heads of state and government in July. this appears to be a rather general flaw in the nomic recessions or other types of crisis hit the structure of the European Union, given that in bloc, the Member States tend mainly to rely on Importantly, the EU level response to the labour one decade we had to face the consequences themselves, or bilateral deals. Border guards market crisis emerged even earlier than the of this uneven European construction three times return, the profiles of EU officials diminish, budgetary initiative. Already in March, the – and each time in a different field. and citizens look to their national leaders. Commission had put forward a proposal for the creation of a European instrument for tem- The first time was with the 2010 financial cri- Generating recovery from these crises, porary support to mitigate unemployment risks sis, the second with the 2015 migration crisis, however, requires renewed EU efforts and in an emergency – an instrument known also and the third, most recent, time with the 2020 creativity, and this time the solution has come by its acronym SURE. Even if this initiative fell Covid-19 crisis. All of these crises, however, in a relatively well coordinated and timely fash- short of delivering common unemployment have succeeded in pushing the EU towards ion. Although there was some initial hesitation, insurance (or at least a reinsurance), it certainly building more emergency and stabilisation the counter-cyclical response from the ECB has created an effective tool to support short-time capacities, and delivering "de facto solidar- been swift and decisive, especially compared work (STW or Kurzarbeit) schemes in the EU ity", as the late French foreign minister and to the previous crisis. The recession caused by Member States.

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Once it was understood that many economic and always end up protecting the corrupt strongmen this was just monkey business. When benefits social activities would have to stop in order to (notably Viktor Orbán and Boyko Borissov) who were on offer in the form of continuing budget eliminate Covid-19, public attention shifted to the keep using EU money to feed their oligarchies rebates, it would have been a mistake to miss rapid rise in unemployment as one of the highest and to cement autocratic regimes. out. The reality, however, is that Nordic Social risk factors of the disease. What Richard Nixon Democrats are either sceptical about join- said 50 years ago suddenly became very true: The liberals are meanwhile united against ing the single currency altogether, or simply "we are all Keynesians now". But allowing pub- the authoritarian nationalists, but divided on oppose the judgment that is a near consensus lic deficits to grow well beyond standard ceilings the political strategy of Europe. Emmanuel in academia. They thus suggest that the EMU was not enough and nearly all European govern- Macron, the leading centrist head of state, has in its current form is not sustainable, and that ments introduced either STW-schemes, or wage been fighting for a quantum leap in European a monetary union would require a significant subsidies, or new income protection schemes, integration ever since his election as French amount of risk sharing and fiscal capacity. or a combination of the three. president. But on this question his main adver- sary is another liberal leader with a strong While work is clearly needed on the internal Based on the 2020 crisis response, one can profile – Mark Rutte. The Dutch prime minister divide of the Social Democratic family on eco- detect a significant, if not compelling, contrast seems to be reviving the British approach, but nomic policy, it should not be forgotten that between the austerity-focused answer to the without the weight of the UK (although he is it has been progressive governments that past eurozone crisis and the current willingness nevertheless successful in finding allies in other have displayed some of the best practices in the coronavirus recession to engage in coun- political families). Rutte’s July performance during the Covid-19 crisis. Denmark, for exam- ter-cyclical policies, with job as well as income went beyond mere frugality, and the Liberals ple, under the leadership of Mette Frederiksen, protection. And indeed, in the current crisis, pro- of Europe will have to work hard to overcome was especially quick to announce a rescue gressives can be bolder than in the past because this polarisation, as the current crisis is bound package based on social dialogue. Her Finnish some of the liberal and conservative forces have to bring new debates on further integration. colleague, Sanna Marin, has meanwhile been also adopted or advocated Keynesian policies. active in looking for ways to shorten the Despite this, the progressive governments’ strat- The Socialist/Social-Democratic family is fairly working week. And when large sectors of the egies have still shown a good degree of diversity homogeneous concerning issues connected economy required direct subsidies, the more across EU Member States. with social rights, like welfare policy and progressive governments (such as those of industrial relations. However, when it comes to Denmark and Spain) stood out with additional economic policy at the European level, there is conditionality in their exclusion of companies indeed polarisation. This was displayed in full headquartered in tax havens, and also in their DOMINANT PARTIES ARE DIVIDED in July, when three out of the five ‘frugal’ prime banning the distribution of dividends to the ministers appeared in Social Democratic col- shareholders of large companies in receipt of The one hundred hours of the July European ours – all of them from the North. At face value, public support. Council exposed deep divisions in all three dominant political families – but they are not divided in the same way. In a nutshell, the Social Democrats are divided on economic policy, the Liberals are divided on political strategy, and the European People’s Party (EPP) is divided on morality.

The position of the EPP does not require too much explanation. The European Council was about to include a decision on a serious and effective rule of law mechanism as part of the MFF deal, but in the end the language adopted did not go beyond the usual generalities. And the reason for this is that the EPP is unable to sort out its internal divisions on the rule of law question. Consequently, the moderates from the West and the North (the Angela Merkel types)

13 - CURRENT AFFAIRS MFF / COVID / RECOVERY

Spain, still haunted by the memory of its devas- which would have been unmanageable by the tating 2009-13 financial crisis, is now applying a hospitals. Italy actually came close to this kind completely different approach compared with of hyper-emergency, in which doctors had to the previous period when it was all about mud- decide who received treatment and who dling through. The country is now, therefore, should be left with less chance of surviving. implementing a labour reform oriented towards Within a few months, the disease was tamed flexibility as well as aggressive internal deval- in Europe and health capacities were restored uation. The centre-left coalition government, and adjusted, so that a new phase with fewer led by Pedro Sánchez, has launched an STW restrictions was then allowed. However, the scheme with very wide coverage, the so-called virus is now back on the rise after the summer ERTE programme. It has also introduced a bold holidays, and the restrictions are beginning basic income model. anew, with a fresh round of measures.

Altogether, the Covid-19 health crisis and the The second lockdown, which we are all antic- resulting economic recession have provided ipating for the early autumn period, will be an opportunity for progressive governments different from the first. What is at stake today to demonstrate their added value, and this has is not so much healthcare but the education indeed become widely acknowledged, espe- system, and especially primary education. The cially in the cases of countries like Finland, forced experiment of everyone turning to online Denmark, or New Zealand. Sensitivity to gen- teaching and learning in the spring showed that der aspects of the crisis has been one of the online educational performance is inferior to most important features of these countries’ that of conventional schooling. Without an outstanding performance. The key has been effort to partly restore standard forms of to implement policies that ensure the most education, the next generations will suffer, vulnerable members of society have a safety and inequalities in knowledge and skills will net on which to rely during the crisis. The key grow enormously. For a revival of education, has also been to implement policies that ensure there will have to be a sacrifice elsewhere, and the restart of the economy is done in a way this not only needs to be coordinated but also which is fair and with equal distribution. put to debate.

The point, however, is that healthcare and pub- lic education are central parts of our civilisation THE LOCKDOWN IS ABOUT and the European way of life. Nevertheless, it is OUR CIVILISATION not the overall consumption levels that will pri- marily have to be restored after the pandemic, The central element in the anti-coronavirus but the systems that support our social cohe- strategy of European governments has been sion and enlightened values – with equality in the enforcement of social (or physical) distanc- the centre. The EU institutions, which are now ing, and the ‘lockdown’. This was at least the committed to protecting and even promoting the case in the first phase of the pandemic, when European way of life, need to play a role in forg- the spread of the virus had to be brought under ing consensus around this strategy. European control. And in the absence of an effective coordination can help establish similar policies vaccination, our society has to be prepared for and similar practices in social behaviour. This another lockdown (and perhaps another after will strengthen the legitimacy of crisis response that). The nature of the various lockdowns can measures. At the same time, it will also improve nevertheless differ. our chances of surviving the pandemic and of preserving our European civilisation. The first lockdown was essentially about sav- ing the health systems of EU Member States by avoiding a sudden rise in coronavirus cases, László Andor, FEPS Secretary General

- 14 FEPS COVID-19 Response

In this moment, more than ever, policy-making requires support and ideas to design further responses that can meet the scale of the problem. FEPS contributes to this reflection with policy ideas, analysis of the different proposals and open reflections with the new FEPS Covid Response Papers series and the FEPS Covid Response Webinars.

FEPS COVID RESPONSE PAPERS

FEPS COVID RESPONSE WEBINARS

Find all these materials -including the video recordings- and many more about to come at www.feps-europe.eu CURRENT AFFAIRS RACISM/ US

With the groan of a man, George Floyd, humanity shivers with racism, so does Europe by Cécile Kyenge

The murder of George Floyd has prompted Europe to question its own racism, even if it does not always seem that easy. Racism needs to be understood as an ideology that puts one human group over one or more other groups, with abusive behaviour as a logical consequence. But it also needs to be understood in its singularity, different from parallel themes like migration and exile. To overcome racism, democracy needs to be completed, with guaranteed and equal access to freedom, justice, and equality. Progressives have a role to play here.

hame came to us, poor humans of the cur- seemed obvious that George Floyd is the nth and negrocidal. It seems easy now to point the Srent time, faced with the groans of US citizen victim of racism, killed mainly for the colour of his accusing finger at the police, naturally prone George Floyd, yet another victim of an absurd skin, many new commentators but also speakers to violence. Unfortunately, however, historic act of police violence which is now covered by in many demonstrations across Europe raised European racism is much more endemic. the media in real time. A dramatic episode, as parallel themes, like migration and exile, show- surprising as it is predictable, because of the ing themselves de facto incapable of grasping recurrent killings of black Americans by other the cruelty of racism in its singularity. Americans, certainly vigilant, but white. Faced  Europe, as we know, has with such an exhibition of racial animosity, Europe, as we know, has trouble recognis- trouble recognising its America, Europe, and the rest of the world ing its own racism. But on the old continent own racism. As in the have remained somewhat dumbfounded, but too, discrimination and hostility towards USA, racism in Europe everything seems to indicate that the macabre blacks is a harsh reality. As in the USA, racism is based on a simple and tradition is set to continue. in Europe is based on a simple and con- confusing principle: the fusing principle: the presumption of guilt. presumption of guilt. Racism, let us remember again, is an ideology, Like George Floyd, before taking any action a behavioural paradigm, based on the theori- whatsoever, the black European also appears sation of the superiority of one human group to be an alleged culprit, liable to reprimand, over another, or over several others. I propose reproof and extrajudicial punishment. It occurs in many social and institutional this definition in the light of the astonishing con- sectors. It negatively influences the lives of ceptual dithering that has recently prevailed in On racism, European democracies suddenly the more than ten million black residents in the debates in many Western media. While it discover themselves to be ancient, backward Europe, and often also kills them. The social

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and institutional relationships between these black Europeans and their white fel- low citizens often suffer from asymmetry and paternalism particularly prejudicial to the dignity of the blacks of Europe. In our public services, in our schools, in our workplaces, in our real estate agencies, in our banking insti- tutions, in our hospitals and so on, the blacks of Europe have the feeling of being perpetually discriminated against, marginalised, racialised, humiliated, dismissed and stolen – because of the colour of their skin.

 The social and institutional relationships between black Europeans and their white fellow citizens often suffer from asymmetry and paternalism.

This pandemic dimension of racism unfor- For actors involved in politics like me, a ques- scarcely hide their close relationship to racism. tunately reminds us that racism is also an tion remains central, but one to which no real Unfortunately, they often show up even in alleg- economic and historical theory. Rooted in answer materialises: how can we make the fight edly more universalist political discourse. the relations of inequality and exploitation against racism a priority issue in our institutions between Europe and Africa, this theory served and in our regulations? The question is even How can we get out of this? One word is as a legitimisation framework for the triangular more serious given that that many European enough: democracy. It is a word that evokes slave trade, for imperialism, colonialism and the politicians and legislators have shown them- values of freedom, justice and equality. coercive appropriation of African resources by selves fond of argumentative racism. Completing democracy in Europe is to suc- a Western elite dedicated to kill. The anti-racist ceed in ensuring that whites, blacks and other Black Lives Matter demonstrations also demon- citizens can grasp the moral precedence of strate a good understanding of the close causal otherness, and restrict its own racist impulses,  link between these dehumanising paradigms This pandemic dimension which generate desolation, and which can kill. of European economic activity of erstwhile and of racism unfortunately Progressive forces must be on the frontline in racism, hence the spectacular toppling of statues reminds us that racism bringing this humanist culture into institutions, of former slave traders, such as that of Edward is also an economic and and into society. Colston in Bristol, in the south of England. historical theory, rooted in the relations of inequality Admittedly, following the murder perpetrated and exploitation between against George Floyd, and in spite of the Europe and Africa. measures on social distancing, our public places were taken by storm by many demon- strators, angry with the omnipresent racism. While such initiatives seem to bring hope for A quick glance at the panorama of ideologies a better social tomorrow, the fact remains that that organise and polarise European politi- our institutions seem strangely incapable of cal parties displays a mosaic tinged almost Cécile Kyenge, Ophthalmologist, Italian translating the will of these demonstrators homogeneously with supremacism, sover- Minister for Integration (2013-2014), Member into effective regulations. eignism and populism. These political doctrines of the European Parliament (2014-2019)

17 - CURRENT AFFAIRS RACISM/ US

Black Lives Matter: a new moment for transformation by Neera Tanden

The murder of George Floyd has propelled the largest sustained protest movement in the history of the United States. It was the final straw in bringing about widespread, focused, and multiracial opposition after years and years of endemic police brutality, systemic racism, and divisive politics. The sheer scale of it, and the rapid shift in public opinion, has created a sweeping demand for change in order to redress a history of inequality. The US elections in November are a chance to make that change happen and to remove the most racially divisive president in the last century from office.

n cities large and small, Americans have stood whereby officers are protected from being and hold police accountable. But if we are Iup and said enough is enough – the structure sued over misconduct in certain circumstances. really going to act on this shift in public senti- of systematic racism must be dismantled. The ment, we cannot dust our hands clean with a wave of public feeling has been so powerful I do not believe it is an accident that this few cosmetic laws related to police brutality. that the outcry over George Floyd’s death and avalanche of support is happening at a We have to ensure those laws are effective, the unequal treatment of Black people has time when we have the most racially divi- far-reaching, and actionable, and we have to been felt across the world. Now, other coun- sive president in at least the last century. make sure that they act as a letter of intent for tries are looking to the US for a response and This is a president who said there were "very wider, systematic change. I believe we are finally in a position to push for fine people on both sides" in the wake of the comprehensive and effective change. Charlottesville ‘Unite the Right’ rally in 2017, Right now, systematic racism is endemic to who described African nations as "shithole the American experience. The typical white According to a Civiqs poll cited by HuffPost, the countries", who tear-gassed protestors for the family has about ten times the wealth of the support for the Black Lives Matter movement sake of a photo op, and who has tormented and has increased nearly as much since George trivialised the push for equality. He is fuelling Floyd’s death as it had in the previous two anger on the streets. Black lives seem to matter  Access to healthcare years. In a recent poll, 53 per cent of Americans less to the police, but they also seem to matter for Black Americans support the Black Lives Matter movement, less to this president. is invariably far more while 57 per cent of Americans now agree inadequate than it is for that police are more likely to use excessive In response, the US Congress must act, and white Americans. And the force on Black people, compared to just 34 their first port of call must be to address per cent in 2016. At the same time, three in police brutality. The Justice in Policing Act fallout from the coronavirus four Americans support a ban on police choke- of 2020, proposed by the Democrats, is an pandemic has shone an holds and well over half of Americans support important start. It sets out common-sense even harsher light on the eliminating ‘qualified immunity’, a doctrine tenets to protect citizens from police brutality product of those inequities.

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typical Black family. Black Americans are incar- incumbent bent on division, and a candidate  In November, we have the cerated at a rate of more than five times that determined to resolve these historical ineq- opportunity to ensure that of white Americans. Access to healthcare uities. Democratic nominee Joe Biden has the right politicians and for Black Americans is invariably far more proposed investing billions in housing to lawmakers are elected to inadequate than it is for white Americans. address the affordability crisis dispropor- enact transformative change. And the fallout from the coronavirus pan- tionately hurting black Americans. He has demic has shone an even harsher light on also proposed ending redlining – a practice the product of those inequities. In the United by which banks and other institutions refuse to States, Black people and Latinx people com- offer mortgages to customers in certain neigh- prise over half the number of Covid-19 cases. bourhoods based on their racial and ethnic Black people are also 1.7 times as likely as their composition – and other discriminatory and white counterparts to suffer from diabetes and unfair practices in the housing market. Biden are 1.4 times more often victims of hyperten- has committed to expanding access to health- sion – two of the pre-existing conditions most care and, when it comes to education, he plans closely associated with a greater risk of death to triple the funding that goes to schools with from Covid-19. Systematic racism exists in so a high percentage of low-income students, as many facets of life for Black Americans that it is well as invest in the recruitment of teachers of incumbent upon lawmakers to match the scope colour. The differences between the candidates of the inequity with the scope of the solution. when it comes to racial justice could not be clearer. That is why November presents a piv- In November, we have the opportunity to otal opportunity. ensure that the right politicians and law- makers are elected to enact transformative Neera Tanden, President of the Center for change. We have the choice between an American Progress

19 - SPECIAL COVERAGE BEYOND CAPITALISM

What digital future for what Social Democracy? Between solidarity and technological sovereignty by Evgeny Morozov

Nothing reveals the existential crisis of the Social Democratic model quite like its inability to get a grip on today’s digital society. To reinvigorate itself and society, Social Democracy must embrace a new ambitious project that would not only reveal the true costs and vulnerabilities of neoliberal empowerment (where global digital capitalism is perceived as working in the interests of everyone – while it doesn't do so), but would also offer a vision for its own type of digital empowerment. It's about updating the values that are more common to the Social Democratic project: solidarity, cooperation, social justice.

he once stable and predictable institutional the new oil). On the other hand, because as it threatens their own well-being, which Tenvironment – the welfare state, the pub- of the central role that the digital industry is today so intricately linked to the constant licly run infrastructures, the functioning public holds in today’s overall model of capitalist expansion of the digital industry itself. sphere – where the worker-friendly market accumulation – whereby huge injections of interventions were supposed to occur can no capital, often by state actors, are meant to Whereas, in the past, this group could be longer be taken for granted. The highly finan- crush competition and ensure ever-rising val- appealed to on the grounds of class solidarity – cialised social state has become the target of uations, which then translate into dividends for example the plight of workers in the Global capitalist accumulation, sapping the remaining – taking on the tech giants means also taking South should matter to their counterparts in legitimacy from Social Democracy and making on global capitalism itself. the Global North, even if it means higher prices it harder to communicate a plausible narrative for some sweatshop-made products – that is about its ability to tame the market. It is not clear whether Social Democrats no longer an option, partly due to the earlier can muster up enough legitimacy to even breathless defence of globalisation by Social The digital industry, one of the few to shine contemplate doing something to this digital Democrats themselves and partly due to the in the recent crisis, presents an immense goose that lays the golden eggs (at least for protracted economic stagnation in the Global conundrum for the social democratic project. some). This is partly due to the emergence North itself. When the real wages are no longer On the one hand, it is clear that the current of the new social base – led by consumers increasing, who can blame the workers for regulatory environment resembles the and ordinary individual investors – who turning to cheaper options instead, however Wild West (in this sense, data is, in fact, oppose market regulation, however timid, unsustainable, and unethical?

- 20 The Progressive Post #14

While some might still be reluctant to which, increasingly, via their sovereign wealth politics in the Global North, continue seeing acknowledge its success, the neoliberal funds, inject huge amounts of cash into the themselves as a creative, countercultural transformation of the past few decades did global technology markets, are even more cul- mix between consumers, entrepreneurs, succeed in splintering the traditional base pable. The Social-Democratic Norway is a case and investors – using their mobile apps of Social Democracy. Two developments are in point: should the global technology markets to order taxis or food or place bets on the particularly important here: the triumph of the tumble under the threat of serious regulation, stock market via services like Robin Hood, paradigm of consumer sovereignty as the over- its sovereign wealth fund, a central piece of which claim to democratise investment arching value for the middle classes and the its revamped welfare state, would tumble with – regulation would always be seen as anti- rise of populist financialisation as a means of them, not least due to heavy exposure to the thetical to their interests. delivering welfare to ordinary citizens. digital economy, the only reliable growth sec- tor of the global economy. A major error made by Social Democrats (of This is how the interests of the middle the more critical bent) in their analysis of the classes were realigned with those of global neoliberal project was to perceive its prom- capitalism, no matter how rapacious, digi- ises as empty and unrealistic, never seriously tal, or financialised. On the consumer side,  The classical regulatory engaging with their content. But empty they the exploitation of couriers and drivers in the project of Social Democracy, were not, as is evidenced by hordes of people, gig economy might be appalling but it is an at least in the Global North, without any explicit right-leaning tendencies, acceptable sacrifice to ensure lower prices appears as a ghost enterprise, who attest to feeling empowered after their on delivered goods. On the financial side, of some appeal to those interactions with the digital-financial behe- many transgressions – including those that destitute on its outside moth that is today’s capitalism. smack of monopoly power, market abuse, and but perceived mostly as exploitative labour practices – are tolerated as harmful by its former The neoliberal promises were not all talk and long as they help digital platforms to ensure adherents on the inside. the empowerment they brought, at least to greater market shares, which, in turn, trans- some, was not fake. But the promises were lates in higher stock valuations, which – in the quite misleading – in never revealing the true ultimate utopian stage – generate wealth for costs of this empowerment, which are usually the ordinary investors who hold the shares of To its credit, the Norwegian fund has pushed borne out by the immigrants, the precarious those firms. for ambitious corporate governance reforms workers, or those in the digital sweatshops of in the tech industry but this in itself does the Global South. Nor is it clear just how sus- Against this background, the entire Social not mean much for the sustainability of the tainable this model can be even for those in Democratic project appears more as a nui- underlying business models: the exploitation the Global North: the environmental toll com- sance, an obstacle in the path of highly of workers in the gig economy is, primarily, a bined with the aforementioned erosion and financialised digital capitalism delivering wealth function of the profitability imperative – and commodification of the basic prerequisites and abundance to the lucky few to consume not of murky and undemocratic governance and infrastructures of capitalist accumulation its products and to invest in its shares. This is system behind the platforms. This should makes this model more fragile than we com- not to say that there are no victims in this cap- serve as a cautious warning against tempta- monly acknowledge. italist fairy-tale – there are aplenty – but they tions by other European states to follow the are either elsewhere, in the data and content Norwegian model in its entirety: it’s one thing moderation centres of the Global South, or they to use welfare state as a vehicle of (national are part of the immigrant workforce (for exam- or regional) industrial and digital policies, but A SOCIAL DEMOCRATIC ple in the delivery sector) and cannot even vote it’s quite another to do it in order to spec- DIGITAL EMPOWERMENT in national elections. The classical regulatory ulate on the global market, if only to fill in project of Social Democracy, at least in the the gaps in the annual welfare budget, as To reinvigorate itself, Social Democracy Global North, thus appears as a ghost enter- Norway does currently. must embark on an ambitious political prise, of some appeal to those destitute on journey that would not only reveal the its outside but perceived mostly as harmful How can Social Democracy move beyond this true costs and vulnerabilities of neoliberal by its former adherents on the inside. ghost-like presence in today’s digital econ- empowerment (where global digital capi- omy? This will not – and cannot – be done talism supposedly works in the interests Individuals, however, are not the only ones using the old toolbox of regulation. As long as of everyone) but would also offer a vision trapped by these lofty promises. Nation states, citizens, the central subjects of democratic for its own type of digital empowerment,

21 - SPECIAL COVERAGE BEYOND CAPITALISM

rooted in values that are more common labour in this model, especially when it comes unlike Wikipedia or free software do today). to the Social Democratic project: solidar- to innovation, is extremely clear-cut: the bulk After all, if our needs are similar, there’s no ity, cooperation, social justice. This would of innovative process is to be borne out by reason for us to purchase individual solutions require rethinking the basic building blocks of the tech enterprises, with some minor inno- to them – a digital infrastructure, conceived the digital society from the ground-up, without vation on the margins (with user-consumers as a public good, would do much better. This any preconceived ideas about what counts as inventing new "needs" and "problems" and should help undermine the centrality of con- a "platform," what its legitimate role and mode government inventing more ways to channel sumer sovereignty for today’s citizenship: of operation should be, and what kind of rela- even more money to the startups). our creative individual aspirations have to be tionship it ought to have with the citizenry. channelled into non-market outlets that tran- The Social Democratic alternative to the scend the logic of fulfilling our psychological innovation economy would make none of needs in the ever-abundant marketplace. such limiting assumptions. First of all, it would recognise that innovation is not just  As long as citizens, the function of industry and production the central subjects of but of life in general – and social and col-  It is important to draw a democratic politics in the lective existence in particular. As we confront distinction between the Global North, continue seeing problems in our everyday existence, we con- technological sovereignty themselves as a creative, stantly innovate – often by reaching out to – of individuals, not countercultural mix between family and friends. This is not some atavistic nation states – conceived feature of a tribal society, as some followers of consumers, entrepreneurs, under neoliberalism, Friedrich von Hayek might have it, something and investors – using their and the technological to be rooted out once the logic of the market mobile apps to order taxis penetrates every walk of life. Rather, such sovereignty conceived or food or place bets on the problem-solving, especially in its more collec- under the new, revamped, stock market – regulation tive, social forms, is a sign of social progress, and technologically would always be seen as not regression, and is to be celebrated and literate Social Democracy antithetical to their interests. scaled up, not suppressed and be ashamed of. sketched out here.

Our digital infrastructures, from cloud computing to social networking to artificial Today’s neoliberal digital economy, without intelligence, should be geared to amplify Social Democrats would be wise to recog- stating it so explicitly, is quite specific about such collaborative possibilities, so that, nise that digital technologies, examined defining all these relationships in advance – once properly established, they can give outside of the capitalist logic that cur- and doing so in a way that cements the role rise to sustainable digital public goods rently restrains their potential, offer a of the market and the price system as the that reside outside of the public realm (not much greater reservoir of political energy, default mechanisms of social coordination. perfect for empowering today’s automised Thus, citizens are conceived as atomised individuals, than the market. The promises users-consumers, who come online to pur- of ever-greater autonomy implicit in the smart, chase an individual solution – an app or a  Our digital infrastructures, fully-automated home or a local economy run digital service – to their particular problem or from cloud computing to on 3D printers, liberated from the global sup- need. Such needs, while present among other social networking to artificial ply chains, are not disingenuous; it’s just that fellow citizens, are tackled on a one-by-one intelligence, should be geared they are unlikely to be realised within today’s basis, so that the solution – which becomes to amplify such collaborative capitalist paradigm. a commodity – can be sold to as many con- possibilities, so that they sumers, in the most profitable way possible. In that sense, it’s important to draw a can give rise to sustainable distinction between the technological sov- Government policy, on this dominant logic, digital public goods that ereignty – of individuals, not nation states becomes all about incentivising more start-ups reside outside of the public – conceived under neoliberalism, and the to build more solutions – that is to commod- realm (not unlike Wikipedia technological sovereignty conceived under ify more problems faster. The distribution of or free software do today). the new, revamped, and technologically

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literate Social Democracy sketched out digital infrastructure, itself a public good.  Whatever its benefits in the here. In the former case, technological These young developers can, of course, also short term, today’s global sovereignty always ends up as consumer choose to work in a start-up or a company financial capitalism limits sovereignty, as technologies are there only – the only real option available today, under – not enables – the truly to serve our ultimate fulfilment in the mar- the neoliberal model – but, in that case, their revolutionary potential ketplace: we can choose with what apps and employer will actually have to pay for using of digital technologies. on what conditions – paying with our data, that public infrastructure. attention, or cash – but the mechanism, that of the market, is always the same. This will not solve all of the problems faced by Social Democracy today. But this will, at In the latter, Social Democratic case, tech- the very least, help create a new set of dig- nological sovereignty refers to the ability of ital public goods while also reinvigorating citizens to chart their own autonomous and non-market means of empowering individu- independent life path, by using the most als, who, in today’s neoliberal environment, sophisticated technologies available, on can only count on the global capitalism in that whatever terms they wish and with whatever respect. Whatever its benefits in the short balance of market and non-market relations term, today’s global financial capitalism they desire. limits – not enables – the truly revolution- ary potential of digital technologies. It’s the Under this model, if young genius devel- most urgent task of the social democratic pro- opers want to work on applying artificial ject to recover it. intelligence to solve humanity’s greatest problems, they can choose whether to do it at the level of their neighbourhood, a local cooperative, a citizen association, a university, a library and any other pub- Evgeny Morozov, founder and publisher of The lic and collective institution. After all, all of Syllabus, a knowledge curation platform, and the them would have the same access to the same author of several books on technology and politics

23 - SPECIAL COVERAGE BEYOND CAPITALISM

Radically transforming the EU economy – and how to finance it The ecological and social challenges of our time can be met! by Ann Pettifor

The Covid-19 pandemic has revealed a simple truth: today’s model of globalised, financialised capitalism, teetering on a shaky foundation of vast debts and costly credit, cannot deliver human well-being. In order to reverse the course, a safe ecological load has to be fixed – a 'Plimsoll line', like the white line on vessels that shows the most they can carry before compromising their seaworthiness. And, to radically transform the EU economy, finance has to be mobilised. Here is a plan of how to do it.

oday's capitalism cannot tackle climate The Butterfly Defect. The new coronavirus increase its investments in low-carbon tech- Tbreakdown and cannot prevent the loss of has taught societies across the world that nology. On 5 August, the Financial Times biodiversity. It considers work as a cost to be globalisation acts as a passport for pan- reported that "Peabody Energy had written minimised, to the detriment of the economy demics, turning airlines and international $1.4bn off the value of the world’s largest and the social meaning of work. journeys into disease vectors. coal mine, an acknowledgment of electricity generators’ permanent shift towards natu- High rates of return on capital (interest) The lethality of the virus, and the threat of ral gas and wind". On 18 August the world’s require ever-rising extraction of the earth’s future pandemics has led to demands for biggest mining group, the Anglo-Australian finite assets and the felling of its biodiverse more localisation of economic activity: for a BHP "confirmed plans to exit thermal coal" ecosystem. Nature is crowded out by inten- reduction in both national and international as the company "prepares for a lower car- sive agriculture, mineral extraction and flights, for more homeworking and for the bon future." Analysts at Berenberg Capital housebuilding linked to expanded transport reshoring of manufacturing. Markets said it would be "fairly challenging" networks (shipping and airlines) and fuelled to find a market buyer for the coal operations by hydrocarbons. These activities have And even investor concerns have accel- because of growing investor concerns about stripped wildlife of habitats and brought erated demands for divestment in fossil CO2-heavy assets. societies into conflict with the animal world. fuels. Such concerns led British Petroleum More than 30 new disease-causing organisms (BP) on 4 August 2020 to become the first oil This is the fast-moving context in which the EU have appeared in just the last two decades supermajor to begin abandoning its business Commission president, Ursula von der Leyen, according to globalisation expert Professor model. It would cut oil and gas production by is leading the progress of the Commission’s Ian Goldin and Mike Mariathasan in their book, 40% over the next decade, and dramatically ambitious Green Deal.

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There is much to admire about the roadmap fund-raising by public authority. Below we economy, could then break down the Union’s and key policies that make up the European propose a plan that could, within existing carbon budget to arrive at ‘Plimsoll lines’ or Green Deal. Treaty-constraints overcome these flaws; carbon budgets for countries, regions and one that would create a European safe cities. In Britain, physicists at the prestigious • Firstly, it has opened up political space asset for raising sufficient finance to imple- Tyndall Centre for Climate Change Research, across the continent, and beyond, for ment the Green Deal across the Union. led by Prof. Kevin Anderson, have developed a debates on how economies can adapt to, low carbon pathway model, SCATTER (Setting and prepare for,climate breakdown and the • The third weakness of the Green Deal is City Area Targets and Trajectories for Emission loss of biodiversity. The debate in Anglo- also structural, and can be located in the Reduction) for Manchester, by quantifying the American economies on the Green New growing, and increasingly divisive economic implications of the Paris Agreement for the city. Deal has petered out – buried by the politics divergences between Member States. This This model could be replicated across Europe of identity, nationalism and protectionism. structural flaw can also be addressed, and and if made public, could provide regional and we do so below. local policymakers with toolkits for measuring • Secondly , the Green Deal has set (and the reduction of GHGs and engage activists and the EU is considering raising) ambitious citizens in the achievement of ecologically safe and binding targets for 40% greenhouse ‘Plimsoll lines’. gas (GHG) reduction from 1990 levels SETTING SAFE ECOLOGICAL by 2030; for an increase in the share of LOADS OR ‘PLIMSOLL LINES’ renewable energy to 32% and indicative targets for energy efficiency. Subject The Green Deal’s carbon budget is a Union- MOBILISING FINANCE FOR THE RADICAL to further debate, these targets will be wide budget and while GHG reduction targets TRANSFORMATION OF THE EU ECONOMY enshrined in law. are binding on Member States, the energy effi- ciency target is indicative only and targets for Perhaps the greatest weakness of the EU • Thirdly , the priority accorded to the climate renewables, while binding at Union level, are Commission's Green Deal is the dearth of crisis provides the Union with off-the-shelf not specified for each member state. Under finance it is proposed would be mobilised policies and targets that could aid job the Union’s governance procedures Member for this transformational programme. The creation and economic recovery from the States will have to submit progress reports and meagre sums proposed can be explained by coronavirus crisis. Meanwhile the increas- Climate Plans to explain progress in achieving the inability of the EU Commission to draw on ingly uneconomic extraction of coal will these targets. These are bound to be wordy, the power and resources of a Central Bank to likely mute Polish and Czech political resist- time-consuming documents that will gather dust generate the liquidity needed to finance public ance to the Green Deal. investment in economic transformation. Instead the Commission is forced to draw on Europe’s While these are encouraging develop- existing and limited public and private savings.  The new coronavirus has ments, the Green Deal suffers from three These include a percentage of the paltry EU taught societies across the weaknesses. budget (barely 1% of the EU’s gross national world that globalisation income) plus savings mobilised by the InvestEU • The first is the failure to set specific car- acts as a passport for Fund and the EU Investment Bank. The EU bon-reduction, energy efficiency and pandemics, turning airlines Green Investment Plan aims to raise €1 trillion renewable energy targets for each coun- and international journeys over ten years. The European Investment Bank try of the Union. into disease vectors. will aim to support €1 trillion of investments in climate action and environmental sustainabil- • The second, more serious weakness is the ity "in the critical decade from 2021 to 2030". pitifully small sums of money allocated for These negligible sums to be expended over the immense programme of work required in libraries. Better if the Commission, having long time periods are entirely inadequate for for the radical and urgent transformation determined the safe carbon carrying capacity the scale of transformation needed if Europe of Europe’s energy, transport and land- of the Union as a whole – the ‘Plimsoll line’, is to achieve Green Deal ambitions. use systems. This distinctly un-ambitious after the white line that is painted on vessels fund-raising plan can be explained by the to show the most they can carry before com- Contrast these sums with the speed and scale structural flaws in Europe’s monetary sys- promising their seaworthiness – or optimum of finance committed by the ECB and European tem, designed to immobilise Union-wide scale of GHG emissions for the European-wide governments in March, 2020 and designed to

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keep Europe’s private and globalised capital attempt to recover €13 billion in back taxes from and €620 billion of ‘callable shares’), the ESM markets liquid. The ECB’s pandemic emergency Apple, whose profits are protected by the tax can now grant direct loans of up to €500 billion purchase programme (PEPP) committed €1,350 haven that is Ireland, an EU member state. This to Member States. But the ESM could be trans- billion to bail out the finance sector, and did so is the third occasion on which the General Court formed, argues Amato, from a fund that lends almost instantaneously. The interest rate on its has upheld the primacy of mobile, globalised in the short to medium term, with potentially main refinancing operations, the marginal lend- capital over the sovereignty of European reg- vexatious conditionalities, into a ‘debt agency’ ing facility and the deposit facility were quickly ulatory democracy. (The other cases involved (DA) capable of mobilising large quantities of lowered to an extraordinary 0.00%, 0.25% and unlawful state aid granted to Starbucks by the finance on the markets, at advantageous con- -0.50% respectively. This largesse was sup- Netherlands and Belgium’s excess profit exemp- ditions, and stabilising the returns of Europe’s plemented by tax breaks and fiscal spending tions granted to multinationals.) public debt by structurally reducing spreads by member states that drew on present and between states. It would do so by providing future contributions (savings) of Europe’s tax- them with a genuine European safe asset even payers. The unprecedented ECB interventions in the absence of improbable reforms of EU were intended to maintain life support for a TRANSFORMING THE ESM INTO treaties. A European safe asset that would be European finance sector that has been in a A NEW DEBT AGENCY ISSUING comparable to that issued by the US Treasury, comatose state since the Great Financial Crisis A EUROPEAN SAFE ASSET the Treasury Bill. of 2007-09. Its lending to these institutions will add to unsustainably high levels of debts owed Despite this setback, Italian economists have The debt agency would receive from each by financial and non-financial corporations, and proposed a plan for issuing a European Safe Member State an annual instalment calcu- will undoubtedly be gambled away on stock Asset, that would overcome current road- lated on the basis of its fundamental risk markets, on stock buybacks and on other forms blocks, and would mobilise large sums of only, anchored to its official rating. The DA of speculation. Green Deal investments, by finance for EU projects. would then issue bonds that filter the market contrast, could expand both private and public liquidity spread risk between Member States. It sector activity, and create jobs Europe-wide. The plan draws on the recent suspension of would collect liquid funds in markets by issuing Job creation will both revive the private the Stability and Growth Pact (SGP). Member plain vanilla sovereign bonds with finite matu- sector, but also generate the tax revenues states are now permitted to spend and go into rity and use these funds to finance Member needed for repayment of public debt, while debt beyond artificial constraints. Nevertheless, States with infinite maturity (perpetuity) loans. at the same time the investment would this suspension does not solve the problem The overall flow of annual instalments from tackle the climate crisis. of financing either new investments or exist- Member States, net of legal provisions, would ing debts. As the Italian economist Massimo allow the DA to remunerate bondholders at a Amato of Bocconi University and colleagues in rate in line with its high credit standing: it will several articles, what is needed is a radical therefore be at most equal to or lower than the HOW CAN WE MOVE BEYOND TODAY’S new instrument – a safe asset – that would fundamental cost for each Member State (cor- RENTIER CAPITALISM AND BUILD A allow Member States to both raise sufficient responding to the returns of the DA’s underlying DIFFERENT AND BETTER EUROPE? finance and service affordable debts. portfolio). EU states could then borrow through an agency that acts as a private entity in inter- Europe’s problems are structural. The Union facing with markets but has the public mission was built on the two narrow pillars of mon- of minimising borrowing costs for the states etary union and financial integration. Its  Perhaps the greatest themselves and possibly also for the debts Hayekian design was intended to ‘encase’ weakness of the EU newly issued by the EU. private capital markets and protect them from Commission's Green Deal the intrusion of democratic states. The recent is the dearth of finance. Without a eEurozone public and common safe bailouts prove the dependence of private cap- asset, it will be very difficult to break the per- ital markets on public resources. verse link between national banking systems and their public debt. From a fund that provides The Union’s economic foundations are laid The Amato et al. proposal for a European Debt loans in the short to medium term under poten- on volatile, globalised flows of private, mobile Agency (DA) would involve the transforma- tially vexatious conditionality, the ESM can turn capital – beyond the reach of regulatory democ- tion of an existing mechanism, the European into a DA already adequately capitalised with racy. This fact was starkly exposed when the Stability Mechanism (ESM). With its capital respect to solvency requirements. It would thus EU General Court rejected the Commission’s endowment of €700 billion (€80 billion paid be able to collect large amounts of funding in

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the markets at advantageous conditions, and to have led to the rise of right-wing, nationalist recorded as a net position in relation to the stabilise government bond yields (while struc- and authoritarian parties, threatening the lofty clearing centre itself, and thus as a multilateral turally reducing spreads) as well as markets purposes of the European Union for peace and position in relation to all the other countries. A and financial operators’ balance sheets, in so unity. As Amato, Fantacci and I have argued quota was set for each country corresponding far as it could provide them with an authentic here, we know that such divergences can be to 15% of its trade with the other countries in European safe asset. resolved because Europe has done it before, the EPU. Credit and debit balances could not when the European Payments Union (EPU) was exceed the respective quotas. The system The ECB could indirectly support the activ- established between 1950 and 1958. therefore set a limit on the accumulation of ity of the DA by using its own instruments debts or deficits with the clearing centre and to ensure alignment of the new European provided debtors with an incentive to converge ‘safe asset’ yields with the ‘risk free’ inter- towards equilibrium with their trading partners. est rate. These interventions, referring to a  What is needed is a radical The EPU also exerted strong pressure on cred- common bond that does not imply any kind of new instrument – a safe itor countries which, like Germany and the mutualisation, would be perfectly in line with asset – that would allow Netherlands today, failed to raise imports and the principle of the capital key. The European Member States to both cut their surpluses. banking system would benefit from the availa- raise sufficient finance and bility of excellent collateral for its daily activities. service affordable debts. The result was an extraordinary, export-driven expansion in production, in Germany and Italy in particular, and the liberalisation of trade not only within the EU, but also well beyond. ENDING EUROPE’S GROWING But what was most extraordinary was that DIVERGENCES The EPU made it possible for each country to this expansion of trade came along with ris- finance its current account deficits without rely- ing employment and welfare in each partner But this is not the only radical reform that could ing on the vagaries of capital liquidity provided country: the EPU was a part of a superstructure help stabilise the imbalances that have arisen by international financial markets, by providing that provided countries with more autonomy to within and across Europe: divergences that a ‘clearing centre’. The country’s position was foster an economy led by domestic demand.

27 - SPECIAL COVERAGE BEYOND CAPITALISM

A NEW EUROPEAN CLEARING UNION Our proposal is to open a section of TARGET2 ECONOMIC SOLIDARITY – call it ‘T2trade’ – designed to function, like A modern version of this system could be the EPU, as a source of funding for temporary While there is scope to argue about the spe- created today. Better still, it could be intro- current account disequilibria, without having cific measures that would need to be adopted duced without changing the EU treaties. It to rely on short-term capital movements. The to make either Amato’s debt agency, or our simply requires enforcing the existing rules result would be a new 'European Clearing proposed European Clearing Union work, it is and reinterpreting the existing monetary Union'. For this to work, four measures critical that any mechanism is based on the infrastructures. would have to be adopted: following political and economic principle: solidarity between northern and southern In the eurozone there is already a clearing • Firstly , credit would have to be restricted in European countries, and solidarity between house for the precise purpose of optimising ‘T2trade’ solely to commercial transactions sovereign debtors and creditors, in order to the management of payments. TARGET 2 (the between European countries and to tourism. restore a common purpose to the European Trans-European Automated Real-time Gross The idea of restricting certain facilities of the project. Solidarity not in a moral sense, but in Settlement Express Transfer) is a system that European Central Bank (ECB) to specific kinds an economic one – of shared responsibility is used today to settle cross-border payments of economic transactions is not new. It was for stability and symmetric distribution of the individually. Within this system, Germany, introduced with the Targeted Longer-Term burden of readjustment. Above all, in a sense together with other surplus countries like the Refinancing Operations (TLTRO). of shared responsibility for the restoration of Netherlands, has built up substantial cred- Europe’s ecosystem. The Green Deal can only its and has the highest positive settlement • Secondly , there would have to be a limit prove truly transformational by basing itself balance. Correspondingly, Portugal, Spain, on the possibility of accumulating positive on the solidarity of Member States, deter- Greece, Ireland and Italy have built up sub- or negative balances, commensurate with mined to work together to tackle the biggest stantial debits, and therefore have negative each country’s volume of foreign trade. challenges ahead: climate breakdown and settlement balances. These reflect the cumula- This principle is perfectly consistent with biodiversity loss. tive balance of payments imbalances between European rules, specifically under the northern and southern Europe that were for- Macroeconomic Imbalance Procedure (MIP). merly financed by capital flows from the centre to the periphery, but which have since reverted • Thirdly, imbalances could be subjected in the wake of the Great Financial Crisis. to symmetrical charges. This option can, and we believe must, take on the form of a political proposal obliging all countries to  It is critical that any face up to their responsibility in settling the mechanism is based on imbalances in so far as they have enjoyed the principle of solidarity advantages in accumulating them. It would between northern and serve as a reminder to the creditor coun- southern European tries that they too have benefited from the single currency, thanks to the opportunity to countries, and solidarity export to the countries of southern Europe between sovereign at a competitive real exchange rate. And debtors and creditors. it would serve to involve these countries in the adjustment process without hav- ing to appeal to their ‘kind heartedness’. This accounting gimmick has played a crucial Moreover, it would be consistent with what role in saving the system of the single currency. the ECB announced in summer 2014 when, While not solving the problem of large interest after introducing negative interest rates on rate spreads, the accumulation of positive and deposits, it stated that negative rates should negative balances within TARGET2 has pre- apply also to TARGET2 balances. vented the financial turmoil that resulted from the sudden stop of capital movements after • Fourthly, there should be the possibility Ann Pettifor, director of Policy Research in the sovereign debt crisis from turning into a of adjusting real, if not nominal, exchange Macroeconomics (PRIME), author of "The Case currency crisis. rates, should imbalances prove persistent. for the Green New Deal" (Verso, 2019)

- 28  Discover the new FEPS Policy Report SPECIAL COVERAGE BEYOND CAPITALISM

The revenge of the ‘places that don't matter’ The rise of populism and how to deal with it by Andrés Rodríguez-Pose

Populism is on the rise all over the developed world. In many parts of Europe, populist parties have seen their share of votes multiply in recent years. The analysis of these movements often concentrates on the motivations of individual voters. But one crucial factor has largely remained under the radar: the long-term economic decline of numerous industrial, but also small-town and rural, communities across many areas of Europe. If we are to tackle this rise, it is essential to fix the problems of the many places that have increasingly come to believe they ‘don't matter’.

n Hungary, in the Netherlands, in France, Rassemblement National (the former Front of Recep Tayyip Erdoğan. Other traditional Iin Germany, in Italy, in the UK and in many National) in France, or the Lega in Italy ﹣ have political parties have also adopted more other parts of Europe, populist options have either already tasted power (in the case of the illiberal stances to respond to the populist been gaining ground election after election. Lega) or represent a serious alternative (in the challenge. This is, for example, the case of At times, they may seem to be losing steam, case of the Rassemblement National). Other, the UK Conservative Party, which in recent only to come back with renewed strength. younger parties ﹣ including Syriza in Greece, times has gradually abandoned the centre Voters of all ilks are becoming dissatisfied Alternative für Deutschland in Germany or ground to embrace political positions that and disappointed with a political system that Vox in Spain ﹣ have made significant electoral not that long ago were championed by the UK they consider no longer benefits them, and inroads and could be knocking at the doors Independence or the Brexit parties (Figure 1). they are thus turning to political options, of power in the foreseeable future. both to the right and to the left of more Almost everywhere, populism has gone established political parties, because these In other cases, populism has impregnated beyond being a force to be reckoned with options supposedly offer easy ‘solutions’ to mainstream political parties. That has been to becoming one of the main challenges for their problems. the case of Fidesz in Hungary under Viktor democratic societies in Europe today. The Orbán, the Law and Justice (PiS) party in number of anti-system parties in government In many ways, populism is becoming main- Poland under the Kaczyński brothers, or of has been increasing across Europe and their stream. Parties that not long ago were on the the governing Justice and Development postulates and positions are increasingly fringes of the electoral system ﹣ such as the Party (AKP) in Turkey under the stewardship shaping the electoral and political agenda.

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While many of these considerations are indeed important in determining the choice of which party to support at the ballot box, there is an essential factor that has, to a large extent, remained under the radar when analysing the rise of populism. This is the long-term economic decline of numerous industrial, but also small-town and rural, communities across many areas of Europe and the rest of the developed world, and the related rise of territorial inequality.

Large cities and capital regions have been doing very well across the developed world. They have been reaping the lion’s share of recent economic transformations. Wealth and economic growth are increasingly con- centrated in a limited number of hands, living in a limited number of places. Europe is no exception. Over the last three decades, economic activity has flocked to large cities, leading to greater economic polarisation. Figure 2 shows the differences in economic performance across regions in Europe over the last three decades, using just two colours. Regions in dark green are those that in this period have grown above the national aver- age. Light green colours denote those regions that have grown below the national average. The differences are stark between the Figure 1. The rise of populism in Europe. so-called ‘places that matter’ and ‘places that don’t’ ﹣ that is, places that have suf- fered economic and demographic decline for quite some time and that have fallen in WHY HAS POPULISM RISEN? and prosper amid the modern, post-industrial between the cracks of development and economy." These voters are deemed to bran- investment policies targeting either more Populism has often been linked with a mount- dish both cultural and economic reasons to developed areas or lagging behind regions. ing disenchantment with the economic, social, embrace the extremes of the political spec- In a country like France, only the Île-de-France and political system by individuals who are trum. On the one hand, they are considered region ﹣ the region of Paris ﹣ has grown above left behind. Some individual characteristics to be ill at ease in a society that has become the national average. The remaining 21 French have been put to the fore as the drivers of more open and multicultural, and that, from regions have grown below it and in some this discontent. Populist voters are normally their perspective, supports values that are cases, well below it. defined by their gender, age, level of edu- different from the ones they grew up in or cation, and type of work they perform or were transmitted to them by their parents. But France is not the exception. It is the rule. used to perform. According to Goodwin and On the other, they feel threatened by a more Similar patterns are in evidence across many Heath (2016), populist options at the ballot integrated and globalised economy, in which parts of Europe. This is the case, for exam- box are fundamentally supported by "older, traditional manufacturing jobs have moved or ple, of Ireland, Portugal, Greece, Czechia, working-class, white voters, citizens with are moving to other parts of the world capa- Bulgaria, Denmark, Sweden and Finland ﹣ and few qualifications, who live on low incomes ble of producing the same type of goods they to a slightly lesser extent, Belgium, the UK, and lack the skills that are required to adapt used to produce at significantly lower prices. Hungary and Romania. In other countries, such

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places were for long among the dynamic industrial hubs of Europe, but have recently struggled to cope with industrial, economic, social, and ecological transitions. The rise of trade and automation has hit them hard. The lengthy financial and economic crisis of the late 2000s and early 2010s and the ensuing austerity has ignited a fuse that was already there. And the current Covid-19 crisis, with its emphasis on technology- and skill-intensive activities that can be performed remotely, is only likely to accentuate this division in areas that remain ill-prepared to cope with remote working. No wonder their citizens are becom- ing disillusioned with the status quo.

Many people in these places are growing tired of waiting for solutions to come from their cap- itals or from the EU. They feel ignored by decision-makers, who, based on the dom- inant theories of economic growth, have either neglected these people or progres- sively withdrawn from intervention in the places where they live. The anger is reaching boiling point and the line between expressing discontent at the ballot and outright revolt is very thin, as evidenced by the ‘gilets jaunes’ (yellow vest) movement in France.

WHAT CAN BE DONE?

The rise of populism in Europe represents a serious threat to a system that, despite all Figure 2. Over- and under-performing regions in Europe since 1990. its flaws and need for reform, has provided the highest level of prosperity, the greatest as Italy, Spain, Germany, the Netherlands and place you live has no future and no longer degree of equality, and the longest period of Poland, it is the traditionally rich regions that matters, you may be inclined to cry out that peace that the European continent has ever perform better than lagging behind areas. ‘enough is enough’ and opt to rock the boat experienced. If we are to tackle this rise in and shake the tree to make sure your plights populism, it is essential to fix the problems This rising territorial polarisation ﹣ at least are heard. of the many places in Europe that have within national borders ﹣ is driving the inhab- increasingly come to believe they ‘don't itants of places that consider they have been A ‘geography of discontent’ or a ‘geogra- matter’. However, the intervention in these repeatedly ignored by an aloof and distant phy of resentment’ has been brewing and areas has to adopt a different form from elite into the hands of populists. When you has become a fundamental driver of the what has been the norm in the past. In these witness your services decline, your public rise in populism. Rural places facing depop- places, national and, to a far lesser extent, transport options dwindle, your schools close, ulation, losing basic services, and increasingly European intervention has often resorted your access to health services moved to other becoming food or financial deserts are venting to the ‘easy way out’: subsidies and hand- locations, and you are repeatedly told that the their anger at the ballot box. Many of these outs. Social policies are, indeed, needed in

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places that have for long witnessed decline, where jobs are in short supply, and ageing is rife. Regions in distress rightly receive more support per capita than those that are more prosperous. Governments have also used public employment to soften the blow of employment decline in many areas that are lagging behind. But social policies and the expansion of public employment ﹣ in regions such as Corsica, public employment amounts to roughly 50% of total employment ﹣ alone are not a long-term solution. They can lead to the creation of assisted and sheltered econo- mies, leaving regions increasingly incapable of fending for themselves and of mobilising their economic potential.

Intervention therefore needs to go beyond ‘solutions’ that are limited to rises in trans- fers and subsidies to declining territories. It needs to turn to territorially-differenti- ated and well-targeted investment. This type of investment also demands moving away from the type of glitzy, mostly large investment has contributed not only to improv- Finding solutions to the rise of populism and infrastructure-related interventions that ing the economic prospects of these areas but the threats it poses to the system will not be have dominated policy in recent decades (big also to stemming the rise of discontent. As my easy. But there is a need to start somewhere, infrastructure mega projects often ending research with Lewis Dijkstra shows, targeted and the implementation of carefully targeted, up as white elephants). It needs to directly investments in energy, the environment and place-sensitive investments is, possibly, the target the potential of many of these places natural resources, IT, social infrastructure, and best way to start. ﹣ for the simple reason that most of these some transport infrastructure have reduced places still hold considerable potential. Big the share of anti-system voting.

European success stories, like Inditex or Ikea, Most of the arguments presented in this article closely have not emerged in big cities. They have We must consequently rethink development follow those of: Rodríguez-Pose, A., 2020. The Rise of risen from nowhere in medium-sized cities, intervention, by turning to types of investment Populism and the Revenge of the Places That Don’t such as A Coruña in Spain (Inditex), or rural that are far more place-sensitive than the Matter. LSE Public Policy Review, 1(1), p.4. DOI: http://doi. org/10.31389/lseppr.4 areas, like Älmhult in Sweden (Ikea). Many blanket, territorially-blind type of policies that of the most dynamic German firms ﹣ the have dominated in the past. This would imply so-called ‘hidden champions’ ﹣ are located ditching the one-size-fits all approaches in in towns and rural areas. There is thus con- favour of investments that are more adapted siderable latent potential in most European to the challenges of these territories and rural and/or declining areas. But firms and more capable of mobilising the potential that start-ups in these places face greater bar- is present in almost every place. riers than firms elsewhere in mobilising this potential in terms of connectivity, skills avail- This is not just a question of social and politi- ability, accessibility, or efficient institutions. cal fairness – allowing for a fairer economic, social, and environmental transition – but also There is thus the need to invest better in an economic necessity. This type of interven- those places that have remained overlooked tion will tap into untapped potential, enabling Andrés Rodríguez-Pose, Princesa de Asturias by policy in recent years. There is evidence ‘discontented’ places to unleash their full eco- Chair and Professor of Economic Geography that well-targeted EU regional development nomic capacity. at the London School of Economics

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The time for a U-turn towards social and environmental justice is now by Fabrizio Barca

The time for adjustments and tinkering is over. Well before the ongoing Covid-19 crisis, inequalities and social injustice had mounted in most Western countries to a point where they produced widespread resentment and triggered an ‘authoritarian dynamic’: a rejection of diversity, a call for sanctioning outlying behaviour and for building walls to defend closed communities. The lessons of the past and what we know of the present tell us that those inequalities are likely to rise even further. As in previous modern pandemics and disasters, the economic and social effects are asymmetric and tend to increase existing personal and territorial inequalities. Therefore, returning to the pre-Covid-19 so-called ‘normality’ – if ever possible – must not be the aim: a U-turn in policy making is indispensable!

uch a U-turn is not just a matter of investing Resilience Facility, conceived as an EU-wide Drawing from the analysis, vision and Slarge amounts of resources. It is a matter of and EU-financed tool. It is a remarkable step. strategy put forward by the Italian "Forum rebalancing powers, pursuing social and envi- It must not be wasted. Disuguaglianze Diversità" (ForumDD), an ronmental justice and rejuvenating democracy. alliance of civil society organisations and The current regulation proposal for the facility researchers, I will argue here that the objec- The European Union has the opportunity to play states that "Member States wishing to receive tive of social and environmental justice an important role in this U-turn, showing that it support […] shall submit a plan" which, among should guide the EU in the use of both the can add value to the life of all European citi- other things, "shall set out an explanation" of Multiannual Financial Framework (MFF) and zens, especially the most vulnerable. It should how it is "expected to contribute to the green the new Recovery and Resilience Facility, pursue the "harmonious development" that its and the digital transitions", and how it "strength- and I will present some concrete and action- Treaty promised to deliver. ens the growth potential, job creation and able proposals. They are inspired and backed economic and social resilience of the Member by an assessment of the nature and causes of In the first weeks of the pandemic, a strong State concerned, mitigates the economic and current inequalities and of the impact of the EU-wide response came only, as in the past, social impact of the crisis" and contributes "to Covid-19 crisis, which is our starting point here. from the European Central Bank, thanks to its enhance economic, social and territorial cohe- federal nature. But, after much hesitation, an sion and convergence". These words must not It is by now widely recognised that the agreement was achieved on a Recovery and be hollow! reduction of economic inequalities within

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countries had come to a halt by the begin- of pseudo-independent labour, the narrative curtailed. Complexity is tackled by entrusting ning of the 1980s and had been reversed and reality of more fluid social positions, etc. decision-making to ‘experts’ and technocrats. in most countries. In Europe this is shown by – made it more difficult for mass parties to Policy choices are presented as technical, as any indicator of personal income and (even represent people. All three challenges could if they were the result of an objective maximi- more so) wealth inequality, and by any meas- have been met, in order to rejuvenate the exist- sation of ‘efficiency’, univocally defined, hiding ure of regional inequality, as well by the rise ing social model. Their negative effects were the clear-cut political choices that they embody. in poverty. The non-monetary dimensions instead deepened by a major cultural turn: Rules and institutions are designed in a ‘one of well-being took a hit too. The expectation neoliberalism. size fits all’ fashion, as ‘space-blind best prac- that inequalities in education, health, housing, tices’. They make no use of the knowledge and mobility and other fundamental services would preferences embedded in the territories and, if be progressively reduced by the process of anything, are shaped to the needs of people liv- European unification were frustrated in most  The reduction of economic ing in city centres: a major cause of the increase Member States. At the same time, ‘recogni- inequalities within countries in territorial inequalities, affecting people living tion inequalities’ were also rising: many social had come to a halt by the in most peripheries and rural areas. The bifur- groups – invisible manufacturing or gig-econ- beginning of the 1980s cations created by technological change are omy workers, teachers, people living in remote and had been reversed dealt with as if there were no alternative: this rural areas – increasingly felt that their role and in most countries. is how the sovereignty over digital platforms views were not recognised and that their aspi- came to be entrusted to private corporations. rations were being ignored by the authorities. The 1994 Agreement on Trade-Related Aspects of Intellectual Property Rights under the aus- As economist Antony Atkinson argued in his Neoliberalism's general features are clear- pices of the World Trade Organization (TRIPS) ground-breaking book Inequality: What Can cut: markets and corporations are seen as provided the seal on the process of concentrat- Be Done?, there was nothing unavoidable in capable of delivering by themselves collec- ing knowledge, by giving a much higher stance this early 1980s shift. tive well-being, except for ‘imperfections’. to the protection of intellectual property rights Capitalism is considered as the cultural and than to the principle of free access to knowl- political institution shaping common sense edge. A very illiberal move. (individual autonomy, values, denial of reci-  The objective of social procity, etc.) and determining power relations. This diagnosis of the origin of inequalities and environmental justice Labour is not recognised as a collective subject. allows us five propositions. should guide the EU in the Class subalternity linked to the control of capital use of both the Multiannual (either material or immaterial) is obscured and • First, since inequalities are the result of Financial Framework so are its relations with racial and gender sub- policy choices, they can be reduced by and the new Recovery alternities. Inequalities are seen as a temporary policy choices. Social and environmental price to pay in order to allow growth, which justice, defined (with the economist Amartya and Resilience Facility. eventually ‘will sweep away those inequalities’. Sen) as "sustainable substantial freedom", The state is conceived as the tool for enacting or "the capacity to expand the freedoms we the strategies designed by ‘technocrats’ and have reason to value" and to ensure at least Three major changes challenged the post-war inspired by private corporations. Citizens count the same freedoms for the next generations, ‘Social Democracy’ model. Globalisation, while by voting, consuming and exerting their free- can indeed be pursued. This should be and helping to reduce inequalities among countries dom to exit – from services, jobs and territories can be the defining goal of left-wing parties. across the world – a remarkable achievement – not by using their voice and participating in – weakened the power of organised labour in a heated and open debate. ‘Conflict’ is con- • Second , this objective calls for a major the West through a major rise in (cheap) labour sidered evil, rather than the salt of democracy. political and policy U-turn, intervening in the supply. The rising digital technology offered very process of wealth creation (pre-distri- significant long-term opportunities to enhance Neoliberal culture has inhibited most left- bution), rebalancing powers and promoting social justice but had the immediate downside wing parties. By evoking the alibi of a a change in common sense. Labour should of a major concentration of knowledge. The ‘liquid society’, they have given up creating be given the tools to negotiate and par- fragmentation of society and of the labour alliances of social groups and have retreated ticipate in the firms’ strategic decisions. process – reduced labour concentration, off- to a role of ‘responsible’ policymakers. The Space for a heated, open and informed shoring, revival of the putting out system, rise power of labour unions has been actively public debate should be promoted in order

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to allow citizens’ participation. A gender incentives. This network produces technologi- pursued. Monopoly positions would be eroded, perspective should be taken in every policy cally advanced open knowledge with agreed innovative goods and services would be sold field. A major investment should be made objectives, offers opportunities for training, gen- at prices covering marginal costs, innovations in the renewal and quality of civil servants, erates and manages freely available big data. would be pursued that are not deemed conven- enabling them to promote and govern pub- But only a few corporations, by making use ient by private monopolies – as is the case for lic debate and to take discretional decisions of their own research, can truly access this vaccines. Furthermore, the new public corpo- geared to contexts. The process of knowl- open knowledge in order to produce market- rations would favour a knowledge transfer to edge concentration should be reverted. able innovations. In the fields of health, digital clusters of small and medium-sized enterprises transformation and green transition – to mention (SMEs). All major EU Member States still rely • Third, such a U-turn can be initiated and the three main examples – consumers therefore today on a strong core of state-owned national put into practice at territorial and national end up paying again for what they have already enterprises: an alliance among them could trig- level, but it also calls for a major coordi- paid for through taxation, while also freely pro- ger the creation of these hubs. nated effort at EU level, in order to achieve viding their own data to privately owned digital the necessary critical mass and to stop a platforms. Furthermore, the creation of strong The second proposal concerns the use of the ‘race to the bottom’ among Member States. monopolies or oligopolies produces an unprec- MFF and the Recovery and Resilience Facility edented concentration of knowledge and power, and addresses the nature of national plans for • Fourth , this U-turn will meet strong resist- cuts off the rise of new firms, discriminates their implementation. There is a great risk of ance by all those people who benefit from against people who cannot afford the prices a ‘bastard-Keynesian’ solution: most of those the current state of affairs. There is no one and, in the case of health, puts at risk the very funds being injected into the economy through single solution that is good for all. There existence of national health systems. unconditional subsidies to firms and persons will thus be the need to cope with different or through unconnected, ready-made infra- views of the world, which is why conflict, structure or training ‘projects’. Both uses fail heated public debate and negotiation are to respond to the need for a radical change the salt of democracy.  Neoliberal culture has and would even fail to reproduce pre-Covid-19 inhibited most left-wing ‘normality’. Providing liquidity to good firms • Fifth , left-wing parties will therefore need parties. By evoking the alibi hit by the crisis, as well as to people who lack to build social alliances, combining and of a ‘liquid society’, they the means to reach the end of the month, is responding to "a multiplicity of heteroge- have given up creating of course necessary - and even more so if neous demands" (Chantal Mouffe), to lead alliances of social groups and further lockdowns become necessary. This and win conflicts. For that to occur, left-wing is the task of the temporary Support to miti- have retreated to a role of parties should develop clear-cut proposals gate Unemployment Risks in an Emergency ‘responsible’ policymakers. through public debate with civic organisa- (SURE), designed by the EU. But this is only a tions and organised labour, when designing precondition and it can be misused if no radical new forms of organisation suitable to our overarching strategy exists. As for ‘projects’, modern society. Regulation can be improved but it is not they are obviously what any plan finally boils enough. As in other turning points of capital- down to, but first there must be a strategy. The time has thus come to pool together the ism – the development of world trade in the Investing in fast-spending ‘projects’ that each radical ideas and proposals that have resulted 17th century, the development of railways public administration has ready in their drawer from the mobilisation of civil society organi- and several utilities, the catch-up process of leads nowhere: while providing construction sations, labour and culture which over these second-comers – there is a need for state- workers and trainers with some short-term oxy- years have filled the gap created by retreating owned enterprises to come onto the market gen, it does not respond to people’s aspirations traditional parties. Here I’ll refer to three con- and compete with the existing private giants. and to the need for change. It rather increases crete proposals put forward by ForumDD. These international technological hubs, open to the profits of those with more power to push the investment of private capital, in the fields forward ‘their own’ projects. The first proposal addresses a paradox. A of health, digital transformation and green powerful network of about one thousand pub- transition, would be able to pursue long-term The purpose of national plans should rather lic research structures exists in Europe, with objectives in line with the mission strategies be to promote a rebound towards environ- autonomous budgets financed by coalitions of assigned by the EU. High-level management mental and social justice. Efforts should be European countries and with an international would prevent short-term political interference, concentrated in the marginalised areas of management motivated mostly by non-monetary while guaranteeing that these objectives are Europe – such as inner and rural areas, city

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peripheries, deindustrialised areas – where of metropolitan areas – is endogenous to Every EU Member State has its own social the endogenous market and democracy reac- the policy process. The existence of common and labour arrangements, that must be taken tions to the crisis cannot suffice. Offering objectives, of homogeneities and complemen- into account. The EU could thus elaborate people living in ‘places that don’t matter’ tarities, of the willingness to work together, can recommendations promoting country-specific an alternative to the authoritarian dynamic, be judged by the national authorities that run institutional arrangements that favour territo- turning their anger into a push for social the plan and assess the territorial strategies. rial cooperation among stable and precarious advancement, removing the obstacles to workers; promote a heated, informed and their creativity, are primary objectives today. open debate at territorial level among labour And even more so as the Covid-19 crisis is pro- and holders of environmental and consumer ducing adjustments in consumer preferences  Offering people living in interests; raise the technical competence of – for example, towards health and social care, ‘places that don’t matter’ these stakeholders; and introduce firms’ duties better and life-long education, decent housing, an alternative to the in reacting to or adopting stakeholders’ assess- locally produced food, short-distance tourism, authoritarian dynamic, ments and decisions. and flexible mobility – that can trigger new turning their anger into a entrepreneurship, and the redrawing of their push for social advancement, These are just three concrete examples of life plan by workers and entrepreneurs. EU the U-turn in policymaking that Europe needs removing the obstacles resources should be used to unleash these today. Many other concrete proposals have to their creativity, are "animal spirits" ("a spontaneous urge to action been developed by ForumDD – such as on rather than inaction, and not as the outcome primary objectives today. steering the green transformation in favour of of a weighted average of quantitative benefits the most vulnerable people, and on levelling multiplied by quantitative probabilities", as John the field for youth in wealth inheritance – as Maynard Keyenes described them in his book well as by many other ‘social alliances’ that The General Theory of Employment, Interest The third proposal concerns the rebalancing have sprouted up across Europe. The time has and Money – and to improve the quality of of labour power. It draws from the experience come for these ideas to be brought together in public services geared to people’s aspirations. of ‘works councils’ operating alongside the a concerted effort. For this to happen, a ‘place-based approach’ board of directors in the companies of some is needed. EU countries, and develops it by taking into account the need for both labour and environ- mental perspectives to have a greater weight in firms’ strategic decisions. The specific proposal  Only a few corporations, prepared for Italy calls for the following steps: by making use of their own creating – first experimentally, then by law – research, can truly access labour and citizens councils in medium-sized the open knowledge that was and large firms or for SME districts; electing publicly financed to produce representatives of the entire vertically inte- marketable innovations. grated production system, including precarious workers; electing citizens representing environ- mental and consumer interests;entrusting the Council with different powers (to be informed, In a place-based approach, open-ended to make alternative proposals, to veto) accord- guidelines, with general objectives and condi- ing to the issue at hand. In this way, the main tionalities, are issued at national level, coherent stakeholders would not be ‘consulted’ here with EU-agreed priorities, while implementation and there, but could debate among them- is left to ‘places’ through integrated strategies selves. The technical quality and strength of produced by means of a participatory pro- their collective action would improve; stable cess with all stakeholders and citizens. This and precarious labourers would be reunited approach has been tried with success all over and would have a chance to reconcile their Europe and it has proved to be more effective views; and labour and environmental perspec- when the choice of place boundaries – alli- tives would not clash ex-post but would search Fabrizio Barca, Italian Minister for Territorial Cohesion ances of small municipalities or sub-sections for solutions ex-ante. (2011-2013), member of Forum Disuguaglianze Diversità

37 - FOCUS A NEW MULTILATERALISM

The 75th anniversary of the United Nations: the urgently needed reforms and their enemies by Mario Telò

The Covid-19 crisis has shown the dramatic discrepancy between the scale of the current transnational challenges (public health, climate change, security, financial stability, extreme poverty, sustainable development, terrorism…) and the weakness of global governance. This gap was visible even before the pandemic, but became much more evident in early 2020. Simply defending the past multilateral legacy is no longer a serious option for any progressive force. Instead, this unprecedented crisis should provide an opportunity for a large mobilisation of social and political actors, experts, states, and regional organisations for a 'new multilateralism'.

A precondition for this 'new multilateralism' provided that inward-looking, exclusive and emerging, arguing in favour of a radically new is realistic reform of the current institutional aggressive nationalism is fought and defeated. UN, based on a new treaty. According to Article framework and governance. But progressive 108 of the UN Charter, however, amendments forces also need to be aware of the vast and Secondly, the new multilateralist alliance that is to this treaty are extremely difficult because diverse field of adversaries and obstacles that in the making, notably the EU, and the dynamic they must be adopted by two thirds of the stand in the way of this political priority. UN reform programme of António Guterres, is members of the UN General Assembly, and jeopardised by the return of power politics ratified by two thirds of the members of the Firstly, nationalism is coming back in its among major players on every continent – United Nations including all five permanent worst forms – running counter to both nat- notably the US, which most supported the UN's members of the Security Council. ural and social science, which show the foundation in 1945. transnational characteristics of our common We must be very clear: the challenge of a challenges, first and foremost of public health. Thirdly, there is unprecedented confusion and courageous and effective UN reform can be The national civic feeling of common belonging disarray regarding the way out of the UN’s cri- neither about cosmetics, nor about dream that has been shown during the pandemic is sis. On the one hand, managerial and minimal worlds. The multiplication of wonderful designs a powerful resource not against multilateral adjustments are proposed by actors defend- and utopias for UN reform may be worse than cooperation but in favour of it. The nation ing the status quo and power logics. On the useless, even counterproductive, because they is indeed compatible with multilateralism, other hand, a multitude of utopian projects are emphasise the contrast between perfect ideal

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constructions and the current reality, and this could provoke resignation and defeat. Instead, what is needed, is a very large mobilisation and commitment for gradual, concrete and feasi- ble reforms. Everybody must be aware that the current five permanent members of the UN Security Council are divided over almost everything, with a single exception: they are ready, with the sole possible exception of France, to veto any treaty reform .

That is why progressive forces must rely on already existing dynamic trends which clearly go beyond a mere continuity with the past. Progressives must courageously address | UN Secretary-General António Guterres the UN’s efficiency gaps, and its current representation – and legitimacy – deficits, already exist today and represent consoli- (2) the ‘COP 21 review methods’, which ensure with new ways of parliamentary and citi- dated actors on every continent. Regional regular enhanced monitoring of the follow-up zen participation. organisations combine the decentralisation or multilateral arrangements on fighting climate of the UN system with a certain containment change by participating member states. These How could radical innovations be brought of power-politics. They are also able to limit reforms would address the scandalous deficit about successfully in the main policy fields – nationalism and disintegration, while offering in multilateral policy implementation by many from public health (by reforming the currently a third way between Western-centric universal- member states, while taking national diversities weak World Health Organization) to security, ism and post-colonial relativism. Even without into consideration. peace, sustainable development, trade, human a UN Treaty reform, they can be recognised rights protection and gender balance? The crit- and supported by the UN system, through The EU is not an arrogant normative model. ical factor will be the capacity of the reformers their inclusion in the decision-making process. However, it is expected by many actors on to detail not only what to do, but primarily how The previous UN secretary-generals, Boutros all continents to play a driving role in reviving to improve the efficiency and legitimacy of UN Boutros-Ghali and Kofi Annan, started this and strengthening the multilateral system. agencies. The main objective must be reforms profound change of the early unbalance in Both the internal practices and external poli- of the modes and levels of governance, and the UN between the regional and global level cies of the EU, beyond both Eurocentrism and this will affect the UN institutions and their deci- of the multilateral governance system. Their Euroscepticism, could play a key role. Why are sion-making process. endeavours may eventually be finalised by there such expectations towards the EU? the innovative leadership of the current sec- Because, as the most sophisticated regional retary-general, António Guterres, supported multilateral entity, the destiny of the bloc  One of the top priorities is an by political resolve, competent expertise, and itself is existentially linked to the future of enhanced role for democratic courageous measures to build a multi-layered the new multilevel multilateralism that is in regional organisations. post-hegemonic multilateralism. the making. This new multilateralism will be an appealing blend of EU values and, in the Another urgently needed reform is for more words of EU High Representative for Foreign One of the top priorities, which must be and variously binding modes of governance. Affairs Josep Borrell, it will speak an innovative, asserted by the EU, is an enhanced role for This could be consensually achieved along realistic, "language of power", when addressing democratic regional organisations. These the lines of two already existing methods: (1) a fiercely competing world. could function as a multilevel complement to the 'Open method of coordination', a soft law the necessary central coordination of the UN. method of governance, based on peer review,

The EU would of course need to look for alli- best practice, and the multilateral surveil- Mario Telò, Professor of International Relations ances and convergences in this endeavour. lance of member states’ practices by a central and Jean Monnet Chair at the Free University council (a method successfully applied by the of Brussels, Professor at University Guido Carli (Rome) and University of Macau, Visiting Unlike in 1945, regional organisations (such as International Labor Organization and by the Professor at China Foreign Affairs University the EU, ASEAN, African Union, and MERCOSUR) EU’s 2000-2020 modernisation strategy); and (Bejing) and Fundação Getulio Vargas (Rio)

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Making the UN more inclusive and democratic by Jo Leinen

The United Nations is celebrating its 75th anniversary this year. Secretary-General António Guterres has invited everybody to discuss and propose measures for "renewing and strengthening" the world organisation. Notably, a UN Parliamentary Assembly and a World Citizens’ Initiative could increase its democratic base.

any papers and debates around the United order has failed again and again because of a largely consultative body, the UNPA would MNations' 75th anniversary (UN75) focus on egoistic interests and veto positions. Global have the right of information on all UN matters reform of the existing UN institutions: the role problems need global politics, and global and action, the right to scrutinise the budget and power of the Secretary-General, the effi- goods need global institutions. and spending, and it would of course serve as ciency of the General Assembly, and above all a platform to discuss relevant global problems the reform of the Security Council. All of this A United Nations Parliamentary Assembly and make proposals. The UNPA could create is important, but it is not enough. Business (UNPA) would, for the first time, give elected committees – for example, a committee on as usual does not reflect the many changes representatives a formal role in global affairs. Human Rights, Peace and Security, which since the creation of the UN in 1948, nor does The proposal has been around since the would monitor the implementation of the it reflect today’s global challenges. UN reform 1920s, when the League of Nations was set Sustainable Development Goals or inquire needs fresh ideas and a new footing. up. As an own body, the UNPA would directly about tax havens and money laundering. The represent the world’s citizens and not national assembly would act as an independent watch- governments. dog of the UN system, and as a democratic reflection of world public opinion. A MORE DEMOCRATIC UN WITH A NEW An UNPA could be established without chang- UN PARLIAMENTARY ASSEMBLY (UNPA) ing the UN Charter. It could be created with Alternatively, the UNPA could be created a decision of the UN General Assembly under through a new international treaty. To enter The UN Charter begins with the promising Article 22 of the Charter, as happened years into force, the treaty would have to be words "We the peoples". However, no clause ago with the establishment of the Human can be found in the document that specifies Rights Council. a means by which ordinary people can play  The UN Charter begins with a role in the organisation’s deliberations and The UN would evolve from what many the promising words ‘We the decision-making. believe to be a generally inefficient talking peoples’. However, no clause shop into a viable and vibrant democratic can be found that specifies The bodies of the UN are occupied by officials body. Initially, states could choose whether who are appointed by the executive branches their UNPA members would come from a means by which ordinary of national governments. Given the many chal- national parliaments, reflecting their political people can play a role in the lenges with direct effect for the citizens, this spectrum and gender equality, or whether organisation’s deliberations is no longer sufficient. The intergovernmental they would be directly elected. Starting as and decision-making.

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ratified by a certain number of countries A World Citizens’ Initiative would be a A successful WCI would be automatically across the continents. Rights and functions dynamic new instrument to put proposals placed on the agenda of the General Assembly with regard to the UN would be confirmed from citizens of all continents and many (UNGA) or, depending on the proposal, on the through a cooperation agreement adopted countries on the agendas of the UN General agenda of the Security Council (UNSC). It by the UN General Assembly. Assembly and the Security Council. The would oblige the UNGA or the UNSC to draft experience of the European Citizens’ Initiative a resolution in response, and to vote on this The Appeal for a UN Parliamentary Assembly is (ECI) and lessons learned from it could be the resolution. States would be required to pub- now supported by numerous NGOs, more than starting point for debate. lish an explanation of the vote, whether they 1,500 parliamentarians, a number of national vote in favour of the resolution or not. This parliaments, the European Parliament and the would create transparency for world public Pan-African Parliament.  With a United Nations opinion and for global citizens. Parliamentary Assembly, A World Citizens’ Initiative in a reformed UN the UN would evolve from system could be created without changing what many believe to be A WORLD CITIZENS’ INITIATIVE (WCI) the UN Charter. Like an UNPA, a WCI could a generally inefficient be established under Article 22 by a vote of Citizens should have a voice in the UN. In talk shop into a viable and the General Assembly. Global politics could a globalised and connected world, many vibrant democratic body. then start a more citizen-centred agenda problems have a direct effect on people and would have a human face. This would everywhere on the planet. improve the credibility of the UN enor- The WCI would have an organising commit- mously, helping to guarantee its survival. tee that is geographically representative. This committee would register citizens’ initiatives  Global problems need global and open the procedure for collection of sup- politics and global goods port. Proposals would only be eligible if they need global institutions. are in line with the purposes of the UN as laid out in Article 1 of the UN Charter.

Many studies and surveys prove that humans A WCI would qualify within 18 months after have similar feelings, aspirations and expec- registration if it has collected a certain quo- tations: living in peace, having a healthy rum of signatures in representative parts of environment or a decent job. These basic the world. Robust digital tools could facilitate needs cannot be expressed on the global stage the collection of support. Verification would Jo Leinen, Member of the European Parliament because they are blocked and fragmented by be undertaken based on random samples, (1999-2019), President of the Union of other interests and power games. residency information and date of birth. European Federalists (1997-2005)

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Strengthening the EU’s role in the UN Security Council today by Nico Schrijver

One of the hallmarks of the EU’s Common Foreign and Security Policy is constructive and effective multilateralism. The United Nations serves as one of the principal platforms of EU foreign policy, including the protection of the EU’s values, fundamental interests, security, independence, and integrity. The EU’s performance, visibility and effectiveness on the world stage could be much improved by allocating a permanent seat on the Security Council (UNSC) to the EU in its own right, alongside four other regional organisations. Obviously, such reform will not materialise in one big bang and should most likely result from a number of incremental steps taken over several years.

he reform of the United Nations by expand- the 20th century United Nations, which is ASEAN. Although their level of cooperation Ting the membership of the Security Council very much based upon the Westphalian and integration varies, they are all firmly has reached stalemate. On several occasions interstate order and fails to take into account established organisations capable of making the member states of the United Nations have the increased role of international organisa- a contribution to the maintenance of inter- been close to an agreement which would have tions, regional institutions, civil society and national peace and security and to the other involved adding both a number of permanent business in the contemporary world. purposes of the United Nations. Within the and non-permanent members divided among specific regional organisations, each should the major regional areas of the world. In 2005, In the 21st century, the challenge is to make be free to decide whether to vest the Security Kofi Annan tabled two options: one model would a leap forward, similar to that taken by the Council seat with the constituent principal have seen six new permanent seats and three founders of the United Nations in 1945 by organs of the organisation concerned, or elected/non-renewable seats added, while the moving away from the suffocating unanimity to opt for a rotating presidency of member interesting second model would have added eight rule of the League of Nations. In our era, this semi-permanent seats with a four-year renewable could best be done by allocating a role to the term and one non-permanent/elected seat. Both principal new regional organisations, in addi-  Today, the challenge is to models would lead to a total of 24 seats on the tion to the current five permanent members make a leap forward, by Security Council. As a result of pushback from (China, the US, Russia, France and the UK) moving away from the the medium powers in particular (like Indonesia, plus Brazil, India and Japan as (semi-)perma- suffocating unanimity Pakistan, Italy and Mexico), an agreement floun- nent members. rule of the League of dered in 2005. In the following years, what looked like almost a consensus faded away. Qualifying regional organisations would Nations. This could best include the African Union, the European be done by allocating a In retrospect, one might argue that these Union, the Organization of American States, role to the principal new proposals essentially aimed at reforming the Organisation of Islamic Cooperation and regional organisations.

- 42 The Progressive Post #14

states supported by the secretariat of the Effectiveness and efficiency could be protected INCREMENTAL STEPS TO organisation – which may bring some desir- and effectuated by not expanding the number ADVANCE THE ROLE OF THE EU able permanency. In the case of the EU, the of veto-holding powers beyond the current IN THE SECURITY COUNCIL European Commission or alternatively the EU P5 and by incrementally qualifying their veto High Representative for Foreign Affairs and right by applying more strictly the rule that a Spyros Blavoukos and Dimitris Bourantonis Security Policy could represent the bloc. party to the dispute shall abstain from voting, observe that "for most parts of the reform by requiring at least a double veto in case of debate, a strengthening of the EU presence in Obviously, this change would require amend- decision-making on serious international crimes the UNSC has been monolithically associated ing the UN Charter, particularly Articles 4 (UN (the French-Mexican proposal), and – in due with a single EU seat or an additional EU seat membership) and 23 (composition of the course – by applying further restrictions such for an EU Member State, proposals still not fea- Security Council). as ‘one veto is no veto’. sible politically 20 years after they were first launched in the early 1990s". Meanwhile, bit by An expanded Security Council of 25 members, bit – indeed, slowly rather than expeditiously composed of the current 10 elected members – the EU’s performance and representation plus two additional elected members (12 in on the Security Council has taken shape. The total), the current five permanent members Maastricht Treaty already envisaged a coordi-  For most parts of the reform (P5) plus Brazil, India and Japan (8 in total) nation of EU policies with its Member States debate, a strengthening of and representatives of five regional organi- serving on the Security Council. The Lisbon the EU presence in the UNSC sations (5 in total), would be instrumental in Treaty added the High Representative to this. enhancing the representativeness and legit- has been monolithically imacy of the Security Council as the world’s associated with a single EU Article 34 of the Lisbon Treaty provides "When most important political organ in the field of seat or an additional EU seat the Union has defined a position on a sub- peace and security. for an EU Member State. ject which is on the United Nations Security

EXPANDED SECURITY COUNCIL READY FOR 21ST CENTURY

Regional area Number of Current P5 Proposed new Proposed Total states permanent seats two-year elected seats Africa 54 0 1.5 4 5.5 (AU and 0.5 OIC)

Asia and Pacific 53 1 3.5 3 7.5 (India, Japan, ASEAN, 0.5 OIC) Europe, 52 4 1 2 7 North America and Oceania Latin America 34 0 2 3 5 and Caribbean (Brazil, OAS)

Total 193 5 8 12 25

43 - FOCUS A NEW MULTILATERALISM

Council agenda, those Member States which certainly important, it is also very much only as the most advanced regional organisation, sit on the Security Council shall request the the start of enhancing the EU position in the the European Union should be one of these. High Representative be invited to present the Security Council and its affairs. More chal- Union’s position." Occasionally, EU Member lenging, and no doubt more difficult to achieve, Apart from the big reform issue of a seat for the States are strongly represented on the UN is coherence in terms of adopting meaningful EU on the Security Council alongside four other Security Council, as in 2018 when – in addition common positions on policy issues of sub- regional organisations, the EU’s performance, to France and the UK – Poland, Sweden and stance, not just the lowest and often vague visibility and effectiveness on the world stage, the Netherlands served on the Council. After common denominator. could be much improved by fostering a number Brexit in 2020, such numbers will probably no of small incremental steps taken over a period longer be achievable. Such EU concertation could be fostered by (in of a number of years. These should be aimed ascending order): at action from strengthening coordination In this regard, it is important to note that the (through seeking to achieve common European EU’s presence within the UN has improved • coordination among EU Member States positions on issues before the Security Council) considerably in recent years. First of all, serving as a member on the Security to voicing such European positions on the through the Lisbon Reform Treaty, the EU Council, including France (as the only Security Council itself through the European itself gained legal personality. Secondly, a few remaining permanent member) and the Commission and the EU High Representative years ago and after a painstaking process, the elected members; or the EU Ambassador as his representative. General Assembly (UNGA) agreed to vest the EU This would not only strengthen the EU’s role in with observer status in the General Assembly. • overall coordination among EU states on today’s world but the Security Council as well. Obviously, much can still be improved but this issues before the Security Council; depends on more coordination and, if possi- ble, concerted action by the EU itself and its • coordination among EU Member States Member States. serving on the Security Council and the principal EU institutions (the European Commission, the European Parliament and the European Council with and through st  The 21 century is no longer the High Representative of the Union for only a world of states. Foreign Affairs and Security Policy) on Next to national states and issues before the Security Council; global governance, we are witnessing an increasingly • seeking to arrive at common positions on multilateral regionalism. issues before the Security Council;

• seeking to arrive not only at common posi- Thomas Mayr-Harting, former Head of the EU tions but also at a truly ‘European’ position Delegation to the UN in New York, reports that on issues before the Security Council; the EU takes the floor at the Security Council approximately 30-35 times per year, both on • presenting and voicing such ‘European’ actual peace and security conflicts (Middle positions on the Security Council itself East, Afghanistan, Africa, Iran) and in the- through the High Representative or matic debates on the protection of civilians the UN Delegation Ambassador as his in armed conflict, the role of women in peace representative. and security, and strengthening peacekeeping operations. One of the few examples in which The 21st century is no longer only a world the EU Ambassador really spoke on behalf of of states. Next to national states and global the High Representative was related to the Iran governance, we are witnessing an increas- Nuclear Deal. ingly multilateral regionalism. It is timely no longer to seek to expand the Security Council

The EU Treaty provisions remain mostly in the with national states but rather with the rep- Nico Schrijver, Professor of Public realm of coordination. While coordination is resentation of regional institutions. Obviously, International Law, Leiden University (NL)

- 44 The Progressive Post #14

Regional organisations and UN reform: towards Multilateralism 2.0 by Luk Van Langenhove

Chapter VIII of the UN Charter foresees a role for regional arrangements in global governance of security, especially in the peaceful settlement of disputes. The Charter though also foresees a clear hierarchy between the global and the regional levels: any enforcement action that involves a regional organisation can only be organised under the authorisation of the UN Security Council. Our proposal however is to engage in a process of networking the UN with regional organisation as a stepping-stone to Multilateralism 2.0.

ince the time when the UN Charter was been room for a re-vitalisation of Chapter VIII. subsidiarity, governance has evolved to a Sdrafted, the world has become more and For some, Chapter VIII is to be regarded as an system of networked actors that have various more regionalised, and today a considerable opportunity to reform the UN without chang- statehood properties. According to Anne- number of regional and sub-regional organi- ing the Charter, with the prospect that it could Marie Slaughter, the future is a "network sations are active around the world, making make the UN more inclusive and might help in mindset" that replaces the old "chessboard" important contributions to the stability and raising the capacities and resources of the UN. emphasis on states, sovereignty, coercion, prosperity of their members. But these regional and self-interest, with the web’s orientation organisation (RO) are not necessarily what the Meanwhile, other developments have opened toward connections, relationships, sharing, drafters of Chapter VIII had in mind. For many new possibilities for enhanced collaboration and engagement. regional organisations, the main mandate is between the UN and regional organisations. not peace and security, but trade and eco- The first of these developments is the chang- The added value of the regional organisations nomic cooperation. Nevertheless, some ROs ing nature of security threats. The initial to global governance is straightforward. On such as the EU or the African Union have in ambition of the UN was clear: avoiding or the one hand, there are the cultural affin- common with the UN the fact that they are stopping armed conflicts between states. ity, shared history and deep ties that make intergovernmental organisations with some Today however, that ambition is much wider regional organisations better placed than ambitions in the area of peace and security. and includes different aspects of human security such as fighting climate change or There have been several attempts to connect pandemics. This opens the door for enhanced  Political reality has always the global scope of the UN with the endeav- collaboration and coordination. ours of regional organisation. But political been a spoiler for any form reality has always been a spoiler for any The second development is the changing of co-operation or division form of co-operation or division of labour. nature of governance. From a concept of labour between the UN Only since the end of the cold war has there guided by the principles of sovereignty and and regional organisations.

45 - FOCUS A NEW MULTILATERALISM

 The initial ambition of the UN was avoiding or stopping armed conflicts. Today however, it is much wider and includes fighting climate change or pandemics.

the security threats are different (for exam- ple, climate change, pandemics, scarcity of resources, and biodiversity). The growing awareness of the threats due to the current weaknesses of multilateralism, together with the opportunities related to the regionalisa- tion and networking of the world, are creating the political possibility for change. The key issue in reforming the UN is that it has to find a way to create a balance between the UN’s responsibilities and its representation of peo- ple on our planet. Such a complex balance cannot be found in reform proposals that are merely based upon nations as the sole build- ing blocks of multilateralism. States have to adjust to a world where other units of gov- the UN to grasp local situations on the organisations should work for and in the UN ernance, from the vey local to the global condition that there is a legitimation and and that it should be clear that regional organ- level, will have statehood properties. This that impartiality is preserved. On the other isations can only act under a mandate by the creates a complex level of governance called hand, there is a possibility of burden-shar- Security Council – not exactly a partnership on multi-level networked governance. Two of ing. The enduring scarcity of resources for equal footing. This process has culminated in the key questions are what should be tackled UN activities (such as peacekeeping) could the adoption of Resolution 1631 (2005), which at the global level and what should be left be remedied by cooperation with regional clearly states that it is the Security Council that to regional organisations; and what kind of organisations. But this does not mean that invites regional organisations to place their interactions are needed between the actors. regional organisations are to be regarded as capacities in the framework of the UN. entities that are there to serve the UN. They A more structured relationship between the are also autonomous actors with their own Most attempts, however, at forging part- UN and regional and other intergovernmental agenda, and in that sense, they have to be nerships between the two entities, at first organisations needs to be developed, which regarded as equal to the UN. glance, look more like streamlining the guarantees greater coordination and cooper- presence of ROs within the UN structure ation in both policy and action. It is time to than a real networking. If the latter is to be re-think the relationship between the UN and achieved, then the UN needs to be prepared the ROs, both inside and outside the canvas TALKING AND WALKING to go further than consultation and looking of Chapter VIII, and to work towards a new THE PARTNERSHIP at how regional organisations implement networked partnership based upon equality. Security Council decisions. In an attempt to forge partnerships between  There are the cultural ROs and the UN, the secretary-general affinity, shared history Kofi Annan called in April 2003 for the UN and regional organisations to "redouble AMBITIONS RE-VISITED and deep ties that make their efforts" to ensure international peace regional organisations and security. But the gist of this and other When the UN was set up in 1945 it had 51 better placed than the UN messages has mostly been that regional members. Today there are 191 members, and to grasp local situations.

- 46 The Progressive Post #14

Advocating the role of regional organisations conflicts and thus to developing peaceful solu- A final word on how to implement such a in the UN is not new, but a new start is needed tions to them. Similarly, regional organisations reform process is that it can only be done by based upon a clear conception of the added are perhaps best placed to operationalise pol- an actor that operates within the UN and that value of the process to the Security Council, icies to deal with global problems. is a power itself outside the UN. Of all the ROs to the relevant UN departments, to the Ros, operating today, only the EU seems to have and to the member states. the capacity and the capability of driving the process. But does the EU, and thus also its The proposal here advanced is to engage in THE ADDED VALUE Member States, want to use soft power to be a process of networking the UN with ROs a change agent in the UN? In this context it as a stepping stone to Multilateralism 2.0. The raison d’être of such a networked inter- is good to remember that the UN and the EU This process should be guided by a series of action could be to create: both have their roots in the thinking about a principles and a clear vision of why this net- future governance structure after the second worked partnership is necessary. It should also • a forum of trust-building between the world war. And as Winston Churchill famously be guided by a set of operational steps to real- different regional organisations and the said: "There is no reason why a regional ise the proposal UN at the highest level in all its agencies. organisation of Europe should in any way In some cases, the UN can also provide be in conflict with the world organisation of legitimation to interventions from ROs; the United Nations. On the contrary, I believe that the larger synthesis will only survive if it PRINCIPLES • a mechanism of learning transfer from is founded upon coherent natural groupings." one case to another. Regional organisa- Principle 1. The UN and ROs should play tions can provide the UN and other ROs complementary roles in facing all global with insights from on the ground; challenges including international peace and security. • a knowledge hub on regional capacities. While some ROs can deliver military capac- ity to the UN, there should be increased collaboration between the United Nations  States have to adjust to a and regional organisations in order to world where other units of maximise efficiency of cooperation and governance, from the vey coordination in all domains of the UN, in local to the global level, will particular through exchange of information, have statehood properties. and sharing experience and best practices.

Strengthening the relationship between the UN and regional organisations should Principle 2. Although for traditional peace and be done in the spirit of a networked gov- security issues, the primacy of the Security ernance structure and geared towards all Council needs to be preserved at all times, human security problems. the coordination and cooperation between the UN and the ROs can be organised without The cooperation between the UN and regional such a hierarchical relationship for all other organisations should contribute to enlarging global issues. the UN from an intergovernmental organisa- tion to an open organisation where all relevant Principle 3. Pragmatism is key. A new part- actors for peace and security can meet. This nership should be built on the comparative not to say that the Security Council needs strengths of each organisation. Geographical to be transformed as from tomorrow. But proximity and close historical, economic and expanding it into a hybrid platform with a cultural ties amongst members of regional mixed membership is perhaps feasible: partly organisations lead to a potentially better countries, partly regional organisations. Luk Van Langenhove, Research Professor, Institute for understanding of the root causes of regional European Studies at the Vrije Universiteit Brussel

47 - FOCUS A NEW MULTILATERALISM

What should be done about the United Nations? by Maria João Rodrigues and Conny Reuter

The global health, climate and economic crises have led to a deterioration of the world order as we knew it. The gap between current global challenges and global governance is widening and weakening the multilateral system. A new, fair, and inclusive multilateralism for the 21st century must be invented.

he discussions at the 75th UN General elections. If this may not imply a change in the and can only be dealt with through coordinated TAssembly (UNGA) on the reform of the UN US attitude to trade, it could certainly bring a action. Our interconnected problems demand architecture represent a unique opportunity to new American approach to the fight against cli- interconnected solutions and to do so, we rebuild the multilateral system. This debate, mate change, to the promotion of human rights need a new, fair and inclusive multilateralism, however, is taking place amidst an intense standards, as well as to an American re-com- which is not only more effective but also more confrontation between those who are against mitment to the UN system. Nevertheless, as legitimate. international cooperation, those who want to the balance of power has radically changed in keep it as it is and those who want to change today’s world, this Western revival would prob- To start with, several emblematic measures are it. This is a make-or-break moment for inter- ably co-exist with the first one. needed: national cooperation, and it will probably be a turning point in shaping the emerging new A third possible scenario would be the • The vaccines against Covid-19 and pandem- global order. renewal of international cooperation with ics to be attributed the statute of vital global a multilateralism for the 21st century. The goods with universal access; What will the new global order be like? In fact, chances for its success depend on building a there are three possible basic scenarios. A first large coalition of forces involving willing states, • A new Social Contract, ensuring universal scenario would feature a fragmentation of regional organisations, civil society actors, and access to health care, education and social the current global order and the emergence also active citizens around the world, even protection and environmental quality for all of a polycentric structure with zones of under authoritarian or anti-multilateral political citizens; influence, including the new ones connected regimes. The European Union is now on the path with China. These different poles and zones to developing stronger instruments of European • Recovery plans that protect companies and of influence may be tempted to become more sovereignty in the budgetary, economic, social jobs and are aligned with UN Sustainable inward-looking and exploit a weakened multi- and environmental fields, and it should aim at Development Goals, and new sources of lateral system to meet their own goals. So far, asserting itself as a fully-fledged political entity taxation, notably digital, financial, carbon this seems to be the most likely one. with a vital interest in defending and updating a and wealth taxes; multilateral system at world level, and in building A second possible scenario would be up a global coalition of allies. • A worldwide commitment to fully implement characterised by a sort of Western revival, the Paris Agreement on climate change and particularly if the current political situation in The COVID-19 pandemic is a sad reminder that share the costs of our global commons of the US is reversed in the upcoming presidential our most critical challenges flow across borders biodiversity, forests and oceans;

- 48 The Progressive Post #14

 We also call for an updated On the eve of the UN 75 th General Assembly, the Foundation for UN system that reflects European Progressive Studies (FEPS) and its partners unveiled a the political and social proposal for a New, Inclusive and Fair Multilateralism. composition of today’s world HR/VP Josep Borrell, Nobel Laureate Joseph Stiglitz and Special and that ensures a more Adviser to the UN Secretary-General Fabrizio Hochschild-Drummond coherent and consistent were some of the influential political and academic figures who global governance. participated in this conference.

• Access to digital literacy and internet con- Find the Policy Report, the video of the conference nections to become generalised, basic and much more at: www.fepsunitedfor.eu social rights to be established for all plat- form workers in the world and common international standards that frame the use of big data and artificial intelligence;

• Compulsory mainstreaming of gender bal- ance in all public policies and budgets.

We also call for an updated UN system that reflects the political and social composition of today’s world and that ensures a more coherent and consistent global governance. Only by ensuring a stronger set of UN compe- tences for norm-setting in the health, social, environmental, digital, and migration arenas, can we tackle global challenges. Interactions between the UN system and other multilat- eral organisations, notably financial and trade organisations such as the World Bank, the IMF and the WTO, and organisations at regional level need to become more systematic.

We should also explore setting up an inter-parlia- mentary network, composed of representatives from national parliaments and regional organi- sations, as an additional consultation body and as a space for regular exchanges on the global agenda. Last but not least, we should promote a Global New Deal aimed at building a more democratic, fair and sustainable order in differ- ent fields, starting with health, social and climate.

This text was originally published on euractiv.com

Maria João Rodrigues, FEPS President

Conny Reuter, Global Coordinator of the Progressive Alliance

49 - DOSSIERS CHILE: 50 YEARS AFTER ALLENDE'S VICTORY

Salvador Allende: his ethical, social and democratic legacy by Marcela Ahumada

Fifty years ago, on 4 September 1970, the socialist doctor Salvador Allende won the elections and became President of the Republic of Chile. In the middle of the Cold War, for the first time in Latin America, a socialist came to power through elections, democratically and in freedom.

ifty years later, taking time to reflect on governed with the people and for the people, liberal democracy into a social democracy Fthe political and democratic legacy of this and for this reason, he became affection- that would assure citizens of basic social moment that marked Chile and the world is a ately known as "comrade President". rights – work, remuneration and decent necessary part of the process of redesigning pensions, universal health and education, and strengthening the progressive project – a women's and children's rights. "Democracy project that still today seeks to build fairer, and freedom are incompatible with unem- more egalitarian and deeply democratic  "Democracy and freedom ployment, with homelessness, with lack of societies to be able to tackle the current new are incompatible with culture, with illiteracy, with disease. How challenges and those of the future. unemployment, with can we deepen democracy? By giving homelessness, with lack of more jobs to the people. By better redistri- The main characteristic of Allende’s Popular culture, with illiteracy, with bution. By building more houses. By giving Unity process and its electoral triumph was disease", Salvador Allende. more education, culture and health to the the leadership and tenacity of Allende himself people" (first anniversary of the government, in building a political project that had the 4 November 1971). full participation of all parts of society. "We are carrying out this revolutionary trans- Allende's political legacy was also his tireless His political project sought tirelessly to link formation by deepening the democratic work for the unity of the left, respecting its the two worlds of politics and civil society. The regime, respecting the pluralism of our polit- different nuances and always processing participation of civil society and its various ical organisation, within the legal order and differences with transparency. His govern- organisations (such as mothers' associations, with the legal instruments that the country ment's programme was not only a technical neighbourhood councils, unions and parties) has given itself – not only maintaining but and bureaucratic list of public policies. It was was an essential element in creating and expanding civic and social, individual and a long-term strategy to endow the left with implementing a government programme that collective freedoms." For Salvador Allende, a solid political project that would address reflected the country’s social needs. For the the structural transformation programme the social, economic and cultural demands first time in Chile’s history, the people felt part had to respect the existing democratic insti- for structural change. This would be done of a social and political project on the basis of tutions unreservedly. However, it also had sustainably and over time, using a language equal opportunities and conditions. Allende to transform the insufficient representative accessible to everyone.

- 50 The Progressive Post #14

At the start of Allende's presidency, the a better policy that does not exclude anyone Popular Unity programme contained a list and in which we are all part of the same pro- of the first 40 measures of great impact. ject, following the great example that Salvador When read today, they are still surprisingly Allende bequeathed to us. relevant: "No more fraud with the prices of pharmaceuticals; housing leases at fair prices; social security for all; fair pensions; milk for all the children of Chile; a new economy to end inflation; maternal and children’s clinics in all towns; no more taxes on staple food". These are just a few examples of what was on the list.

Allende leaves a democratic and ethical legacy that needs to be rescued and treas- ured by all progressives. In recent decades, in various regions of the world, our democratic systems have been hit by criminal dictator- ships, fanatical right-wingers, populism and strong nationalisms that have led to the deg- radation of our social fabric and to a division of the left.

 Allende leaves a democratic and ethical legacy that needs to be rescued and treasured by all progressives.

Fifty years later, Allende’s legacy calls us to work in unity and collaboration to combat the tremendous inequalities that the neo- liberal model generates by further enriching the representatives of big capital, forgetting the majority of the population who claim dig- nity of treatment, equal opportunities and real participation in formulating and implementing public policies aimed at satisfying their needs.

It is essential that we unite again, imagining new ways to articulate the social and politi- cal dimensions, and to deepen our political systems, with more and better democracy, seeking the common good rather than the | Salvador Allende at a political rally (Santiago de Chile). Salvador Allende Foundation Documentation Center individualism that has permeated our socie- ties in recent decades. We crave a return to a Marcela Ahumada, Executive Director, collective approach to enrich each other with Salvador Allende Foundation

51 - DOSSIERS CHILE: 50 YEARS AFTER ALLENDE'S VICTORY

Salvador Allende: respect for the world by Juan Somavía

When Salvador Allende entered the General Assembly of the United Nations, a very exceptional thing happened: there was huge, spontaneous applause from the delegates, who rose to their feet. At the end of his speech, the president of Chile was again cheered at length with a persistent standing ovation. This only happened once again, with Nelson Mandela, after his release.

llende’s UN standing ovation was on 4 has resolved to reject, seeking instead an the struggle of the Chilean people. During ADecember 1972, after he had had two accelerated, autonomous and own devel- his government there were multiple exam- years in power and was being beset by clear opment, by revolutionising the traditional ples of political and popular support, as well efforts to prevent his government’s normal structures." as support from the unions. After his death, a development, despite his party gaining more huge condemnation of the civil-military coup and more voters in the successive elections of in Chile erupted, triggering a spontaneous local authorities. Powerful external and internal reaction of solidarity with the recovery of interests tried to impede Allende’s election at democracy and human rights in the most all costs and to destabilise his government.  Today, Allende would be diverse parts of the world, particularly in The Church Committee report of the US Senate fighting for a great effort of Europe. Allende's tragic death gave rise to (1976) describes in detail the alliance between international cooperation enormous respect due to its historical conse- the Nixon government and important leaders of of all countries to cope quences and the incentive it created to open the Chilean oligarchy. Allende was considered with the pandemic. the doors to thousands of exiles. a dangerous example for countries in Latin America and the Third World, who could At the UN Assembly, he stated that Chile was seek to imitate the Chilean example. "a country that […] has never deviated from The minutes of applause were not just for the fulfilment of its international obligations "I come from Chile, a small country, but the speech; they were directed at the human and now cultivates friendly relations with all where today all citizens are free to express being standing in front of his audience, and at the countries of the world. It is true that we themselves as they prefer, with unrestricted his innovative ideals. A doctor and socialist have differences with some of them, but cultural, religious and ideological tolerance, politician who throughout his life had fought there are none that we are not willing to dis- where racial discrimination has no place." The to give dignity to the people and make Chile cuss with, using the multilateral or bilateral UN General Assembly was confronted with a a just society in democracy, pluralism and instruments that we have subscribed to. Our true international leader and felt a connection freedom. The applause was a great symbol of respect for treaties is invariable." with him. "We, the underdeveloped coun- solidarity. A way of saying, "President, we are tries, condemned to second-class realities, with you." The principle of people’s self-determination always subordinate. This is the model that was at the heart of Allende's international the Chilean working class, by imposing And this is perhaps one of Salvador Allende's vision, along with national autonomy and a itself as the protagonist of its own future, main international legacies: solidarity with solid system of cooperation between equals.

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| Salvador Allende at the United Nations General Assembly (December 4, 1972). Documentation Center of the Salvador Allende Foundation

 "We, the underdeveloped countries, condemned to second-class realities, always subordinate. This is the model that the Chilean working class, has resolved to reject."

Chile had a great role in strengthening • Allende promoted the concept of ‘ideolog- Perhaps the most lasting sign of respect for these principles during Allende’s mandate, ical pluralism’ as the foundation of unity in Salvador Allende in the world is the fact that not only at home but also by establishing the diversity of Latin America. for millions of people he is still a source of relations with China, Vietnam, and countries inspiration. This finds expression in the numer- of the Soviet bloc. Those were visionary • The United Nations Economic and Social ous streets, squares, schools and hospitals, for decisions, given that today the axes of Council unanimously accepted the Chilean example, that all bear his name and that will be geopolitics and the global economy are proposal for the UN to study the economic there for generations as testimony to his life. moving towards Asia Pacific. Furthermore, and political impact of transnational cor- Chile's adherence to the Non-Aligned porations. The proposal was based on the Today, with his multilateral conviction and in Movement under Allende established a new intervention of US companies like the man- the face of the terrible Covid-19 pandemic space for political cooperation. ufacturing giant ITT and the mining company that plagues the world, the doctor Salvador Kennecott in Chilean politics. Allende, former Minister of Health and creator In the international arena, Allende’s gov- of the Chilean public health system, would be ernment displayed the greatest energy and • Chile strongly supported the rejection of the fighting for a great effort of international creativity in the United Nations and in devel- French nuclear tests at Mururoa. cooperation of all countries. opment issues. Here, some examples: • Under Allende, Chile participated in the We have an urgent obligation to strengthen • UNCTAD III was held in Chile with the Environment Conference in Stockholm in the multilateral institutions, to modernise them participation of a hundred countries to 1972, which opened the way to sustainable and open a space for citizen presence typical of advance the main problems of trade and development. participatory democracy. The challenge is clear, development in the Third World, with sup- and it is possible to meet: save lives today, but port from the international community. The • Chile was an active member in the efforts that also tomorrow. conclusion of this session reflected many led to the recognition of the People's Republic of the values of the Chilean government of China as a legitimate member of the UN. represented. Allende was clear: "We must replace an expired and profoundly unjust • When the Convention on the Law of the Sea economic-commercial order." Years later, began in 1973, Chile maintained that the sea

this inspired the UN proposals for a new beyond national jurisdiction should be the Juan Somavía, former Director of the international economic order. common good of humanity. International Labour Organization

53 - DOSSIERS CHILE: 50 YEARS AFTER ALLENDE'S VICTORY

Urban development in Allende’s Chile: going up! by Genaro Cuadros Ibáñez

At the time of Salvador Allende's election victory on 4 September 1970, Chile was experiencing accelerated urbanisation that was deeply unequal. Confronting the housing deficit, and providing access to urban services and facilities would be one of the challenges of Allende's Popular government. With creativity and involvement of the people, President Allende tackled innovatively the same kind of problems that we still face today.

alvador Allende and his Chilean path Chile at that time was a country in the process The infrastructure networks did not cover all Sto democratic socialism featured a of modernisation, undergoing accelerated parts of the working classes equally, accumu- 40-measure programme, the mobilisation of a urbanisation, with 8.8 million inhabitants, 75 lating a housing deficit of 600,000 homes as generation of new innovative professionals and percent of them living in cities and 27 percent a result of rural-city migrations. These migra- workers committed to transformation – and it concentrated in the capital. In other words, it tions had generated land seizures in the urban enjoyed the admiration and collaboration of a was a deconcentrated territory and a more peripheries, with settlements emerging like cal- generation of the world's left. The combination homogeneously inhabited one, but with low lampas-mushrooms in the forest after the rains. of popular wisdom and technical innovation rates of human development. pushed Allende from the 36.6 per cent that The Allende government programme rec- initially supported him to 44.2 per cent shortly ognised this with five concrete measures, before his ouster. Halfway through his man- seeking to fully address the challenges: date, there was an unprecedented explosion  With creativity and "Carry out the remodelling of cities and of creativity and popular energy, the echoes of involvement of the people, neighbourhoods, with the aim of prevent- which persist in Chile to this day. President Allende tackled ing the expulsion of modest groups to the innovatively the same periphery, guaranteeing the interests of the Democratic and pluralistic leadership, as well kind of problems that inhabitants of these remodelled sectors, like as his ability to listen, were the hallmarks of we still face today. small businessmen who work there, ensur- the comrade president for the benefit of the ing 10 per cent of occupants in their future effectiveness and creativity of his government. location". Today they would call it 'effective horizontal leadership'. This was well embodied by the Shortly before Allende’s election victory, the To achieve its objectives, numerous real estate team formed by the prime minister Héctor Ministry of Housing and Urbanism had been projects were launched to relocate these Cortez – himself an experienced construc- created (1965), as had the first Metropolitan popular camps. A Russian-inspired indus- tion worker –, and by the architect Miguel Plan of Santiago and various public entities trial prefabrication system was installed that Lawner, who together were responsible for to implement social housing policies. But con- reinvigorated the nascent public and private implementing Allende's programme in the struction was stagnant due to a lack of public industrial production – a unique experience in urban and housing sphere. land and a still developing incipient industry. Chile’s history. The so-called ‘operación sitio’

- 54 The Progressive Post #14

| Santiago de Chile, 1971. Salvador Allende Foundation Documentation Center.

was also deployed to regularise land tenure and access to the network of basic infrastruc- tures such as water, electricity, and sewerage. But this was just the beginning!

Large remodelling projects were expanded to densify the country's urban centres with the participation of the residents. ¡Vamos para Arriba! (Let's go up!) was the most innovative of the socialist government's initiatives to incorporate the working classes into well-lo- cated vertical neighbourhood dynamics. According to the 1970 census, only 7 percent deficit in the main capitals of the world, provid-  ¡Vamos para Arriba! (Let's go of households lived in apartments in the ing houses for tourists, but not for residents. A up!) was the most innovative capital Santiago de Chile, while today they socialist city agenda cannot avoid conflict- of the socialist government's represent 17.5 per cent. At the end of 1972, the ual topics such as setting rental prices, or initiatives to incorporate country had exhausted the available construc- establishing quotas to control the specula- the working classes into tion materials and reached a historic peak in tive phenomena of global capitalism, the well-located vertical the construction of houses, which would only environmental effects on cities, the living neighbourhood dynamics. be resumed two decades later by the demo- conditions of its inhabitants, the govern- cratic governments. ance of speculative processes and the increase of sustainable urban density. Today that political programme is still in force, having been transformed into a public policy The coronavirus pandemic threatens the of the state – a step undertaken by the coali- idea of the concentration and density of cit- tion governments led by the socialist President ies right across the world, reminding us that Michelle Bachelet. However, Chile’s cities are the consumption of natural soil, as well as the most unequal among the OECD coun- the unlimited growth of city-regions fed by tries, with Santiago in a prominent position. the investment market, are an environmental This is due to the neoliberal interventions danger that puts our survival at risk. A par- of the dictatorship of Augusto Pinochet that simonious use of land and natural resources ousted Allende in a coup in 1973 and that lib- requires strong governing, both of cities and eralised the ownership of urban land, pushed global capitalism. These were already great settlers towards the periphery and subsidised challenges for Latin America in the 1970s, and the offer, generating a large speculative real Salvador Allende knew how to meet them. estate industry.

The entire world today faces similar chal- Genaro Cuadros Ibáñez, Teacher of Urban lenges, but of different proportions. High Planning at Diego Portales University levels of socio-spatial segregation, a housing (Santiago de Chile), Salvador Allende Foundation

55 - DOSSIERS ROMA: TOWARDS A NEW EU FRAMEWORK

Roma Integration: civic equality or ethnic empowerment? The EU at risk of becoming the stepmother of an orphan people by Martin Kovats

By imagining Roma as a distinct and coherent transnational ethnic minority and policy object, the EU's Roma policy feeds the ethno-nationalist idea that they do not belong to the state's nation. The policy is a wedge driven between Roma citizens and their national states, turning them into an 'orphan people', taken care of only by a 'stepmother country': the EU. The new EU framework needs to break that circle and return to the principle that national authorities equitably serve ALL their citizens.

he EU Framework for National Roma the politicisation of Roma identity. In contrast, Despite the underwhelming impact on the TIntegration Strategies up to 2020 "seeks to the post-communist period in central and living conditions and life chances of some make a tangible difference to Roma people's south-eastern Europe has been characterised of the continent’s most vulnerable peo- lives" by "putting an end to the exclusion of by mass impoverishment combined with the ple, the EC’s 2018 evaluation claimed that Roma" – in other words, to raise living stand- unprecedented promotion of Roma as a distinct the Framework has demonstrated the EU's ards and promote equality of opportunity by political identity, in terms of both Roma activism added value by putting Roma on agendas, directing resources and attention on the basis and Roma policy. with the development of dedicated govern- of Roma identity. ance structures and processes and through It is not possible to measure the effectiveness the use of Cohesion funds, and "that without But is the aim to strengthen social cohesion of the Framework in bringing about "tangible it Roma issues would receive less attention". by reducing inequalities, or is it to politicise improvements". This is not because of any lack Undoubtedly, the Framework has stimulated Roma identity as a medium for change? This of quantitative data on Roma, but because of the production of much more Roma-focused distinction is rarely considered as it is gener- their inconsistency due to the ambiguity of governmental activity, both within Member ally assumed that not only are these aims not Roma identity and different methodologies. States as well as among EU institutions. In mutually incompatible, but that they are actually There is general agreement among academ- fact, with the Framework overseeing the complimentary. The logic of the Framework is ics and activists that "the EU Roma Framework Roma policies of all Member States (as well that tangible improvement can be made through […] fails to achieve its goals in all policy areas", as those of candidate countries), the EU has targeted Roma policy initiatives. as Martina Matarazzo and Violeta Naydenova established an integrated European Roma write in Post-2020 EU Roma Strategy: The Way governance process. The EU has become the However, both the history of Roma politics Forward, and the European Commission (EC) lead political institution, not only in terms and the experience of the Framework itself itself recognises that "progress in Roma inte- of public policy commitments, but also as a show that this assumption does not hold. State gration has been limited since 2011" and that key provider of funding for Roma projects, socialist assimilation policies produced impres- "employment did not improve in any statistically bringing together stakeholders and sym- sive social and economic gains while rejecting significant way". bolic commemorations.

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WHO IS RESPONSIBLE FOR ROMA?

The EU has accreted political responsibility for an area over which it cannot ensure delivery. The Framework has allowed extensive poverty and exclusion to continue, while at the same time publicly presenting Roma as fundamentally different from their fellow citizens. Rather than countering, this reproduces a process that has been unfolding in post-communist states since the 1990s. In addition, the EU’s involvement creates additional complexity when it comes to accountability. In becoming the political lead on Roma issues, the Framework's key message that Member States are responsible for the social and economic inclusion of ALL their citizens (and legal residents) has been drowned out. This creates a perverse incentive for governments to and coherent transnational ethnic minor- by reducing inequality. While nominally seek- undertake only limited activity to comply with the ity, policy object and political community. ing to increase the accountability of domestic minimal standards for National Roma Integration This appears to legitimate the ideology of authorities, the first Framework has effectively Strategies (NRISs) to satisfy their accountability to exclusion by endorsing majoritarian eth- undermined it by setting low standards and the EU, while activists and advocates blame the no-nationalist thinking that Roma do not expectations for national governments. EU for inadequate regulation, and demand more belong to the state's nation and therefore intensive Roma governance at the European level. have a lesser status within the nation's The real lesson of the Framework until now is state. The Roma Framework sets European that effective policy will only come about where The fundamental flaw in the Roma policy dis- institutions on the path to taking ever greater it matters – in the Member State institutions and course lies in the lack of accountability within responsibility for Roma through the develop- societies – when there is sufficient domestic Member States, which itself reflects the civic ment of targets, tools and processes for Roma political accountability. The next EU Roma weakness of Roma people (individually and col- governance. The strategic political risk is framework therefore needs to maintain lectively) to influence domestic authorities and that continued failure to reduce social and the focus on quantitative reductions of ine- institutions. Despite the historically unprece- economic inequality within Member States quality in Member States, but also enhance dented rise of Roma political activism over will lead the EU to become the stepmother the quality of citizenship through support- the last 30 years, it has not been possible to country of an 'orphan people' – effectively a ing research, debate, transparency and mobilise the required extensive public and capitulation to racism and an abandonment accountability within states (rather than at private investment in key Member States to of the aspiration that national authorities the European level). Difficult as the situation is, provide sufficient jobs, adequate housing or equitably serve all their citizens, regardless the argument for Roma inclusion must be won equitable public services. The low priority of of ethnicity! within Member States and societies. Otherwise, Roma encourages discrimination as a means not only will poverty and exclusion, racism and of rationing resources. Roma policy is meant to violence continue but, as ethnic divisions inten- overcome material obstacles to inclusion, but sify, the EU will be expected to take on even by failing to achieve this it reinforces prejudiced REDUCING INEQUALITIES greater responsibility for Roma from national perceptions of Roma as a burden on society, governments, which will effectively facilitate encouraging both physical and social segrega- The EU has to decide how it will take forward and institutionalise racism and exclusion. tion. Accountability to the EU is expected to, but its commitment to Roma. The first Framework cannot, compensate for the lack of civic account- has shown that it lacks the legal or political ability among national authorities. authority to compel key Member States to adopt effective social policies. Indeed, it may This rejection of Roma within home socie- even have made things worse by presenting a Martin Kovats, Special Advisor on Roma issues ties is compounded by the EU's endorsement patronising or prejudicial image of Roma dif- to the EU Commissioner for Employment, of the idea that Roma constitute a distinct ference without strengthening social cohesion Social Affairs and Integration (2010-2014)

57 - DOSSIERS ROMA: TOWARDS A NEW EU FRAMEWORK The EU Roma policy Background and functioning

The EU's direct involvement with policy specifically directed towards Roma was a response to changed political conditions arising from the eastward enlargement. The post-communist transition had a devastating effect on Roma communities in central and south-eastern Europe, wiping out the gains of two decades of integration policies, producing high levels of unemployment, poverty and exclusion, which remain to this day. Roma also became targets of nationalist politics (such as the denial of citizenship in the Czech Republic), racism (including pogroms and murders) and discrimination.

uring the EU accession process, candi- The EU Framework for National Roma population. Each member state government Ddate countries were required to set out Integration Strategies up to 2020 was launched has a National Roma Contact Point to oversee a process for addressing Roma issues. These in 2011, requesting all Member States to come up the delivery of its NRIS and to work with the processes built on actions already being taken with national plans for delivering improvement, EC, which includes the take up of social funds, by national governments across the region. known as National Roma Integration Strategies access to which became conditional on hav- However, the main driver for bringing together (NRISs). To make the Framework relevant ing an NRIS. The EC reports annually on the Roma policies on a transnational basis was across the EU, the European Commission Framework and organises biannual European the Decade of Roma Inclusion (2005-2015), (EC) adopted a very broad definition of who Roma Platforms for stakeholders. an initiative of the World Bank and George should be considered Roma, including not Soros’s Open Society Institute. only east Europeans or Romani speakers, but The Commission is not the only EU institu- also indigenous western communities such as tion involved with Roma. The Framework is The EU also become embroiled in concerns Spanish Gitanos, UK Gypsies and Scottish as supported by a 2013 Council recommenda- about the migration of Roma from east to well as Irish Travellers. The target group was tion which provides "guidance to Member west, initially as asylum seekers and then as further enlarged due to the objections of some States in enhancing the effectiveness of workers. Notably, the Berlusconi government Member States (notably France and Germany) their measures to achieve Roma integration declared a 'Nomad Emergency' in 2008. to a specific ethnic policy, so allowing NRISs to and strengthen the implementation of their The first Barroso Commission organised the include actions for addressing the needs of other national Roma integration strategies". The initial European Roma Platform and pub- vulnerable groups too. European Parliament has taken an active lished 10 Common Basic Principles on Roma interest. As well as debating the EC’s annual Inclusion. However, it was not until a public The NRISs focus on four policy areas: educa- report on the Framework, it has adopted more row between European Commissioner for tion, employment, housing, and health. Due than half a dozen resolutions since 2011. Other Justice Viviane Reding and the French gov- to the lack of comparable baseline data only institutions engaging with Roma policy issues ernment over the discriminatory treatment one specific target was set: to ensure that all include the Committee of the Regions, the of Roma EU citizens that the Commission Roma children complete at least primary school European Economic and Social Committee, committed to a comprehensive approach education. The other targets were to reduce the Fundamental Rights Agency, the Court of towards Roma. the gap between Roma and the rest of the Auditors and the European Court of Justice.

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In putting Roma on its agenda and into its work- the EC has reported on the number and type of For the Framework's mid-term review, a qual- streams, the EU institutions have integrated national commitments, identifying, according to itative stakeholders survey showed similar Roma issues into their own operations, allow- the latest figures for 2017, 883 actions, of which ambivalence, with most respondents not seeing ing for them to be discussed across the bloc. 480 were explicitly targeted at Roma. any improvement in any policy area. Despite At the same time, the EU (primarily through the emphasising the positive, the Roma Civil Framework) has integrated all explicit Roma pol- Measuring the impact on the lives of real Monitor's 2020 report on the Framework icy actions across Europe (including candidate people has proven immensely difficult at could not find any significant improvement in countries) into a specific, ethnic governance the European level. Despite an explosion in any of the target policy areas. In preparing for structure overseen by the Commission. Roma-related research over the last couple of the renewal of the Framework later this year, the decades, there is a lack of complete or con- EC has not undertaken any impact assessment as The EU’s role on Roma is more than the sum of its sistent data relating to the wide variety of the "expected impacts strongly depend on the level social policy parts. In its politicisation of a Roma diverse communities defined as Roma for EU of commitment to Roma equality and inclusion identity, the EU endorses a particular ethno- policy processes. The Framework encourages agreed to by the Member States" and "carrying graphic and ideological vision of a unique policy on an ethnic basis, but there are con- out an impact assessment in the area of Roma transnational ethnic minority that requires siderable differences between member state equality and inclusion is confronted with serious special, transnational political management. governments as regards the status of 'Roma', limitation in terms of ethnic data collection". The symbolic significance of this conception of and as regards the governments’ capacity and Roma for the European project is also seen in commitment to ethnic data collection. Roma The complexity of Roma identity and the the formal celebration of International Roma policy also contends with the legal and ethi- attempt to apply it to groups of people for Day (8 April) and the marking of European Roma cal challenge of public authorities attributing political purposes and in accordance with insti- Holocaust Memorial Day (2 August). a subjective, and often prejudicial, iden- tutional needs means the EU faces immense tity when it is the right of the individual to challenges to authoritatively quantify the Two main ways have been used to quantify the choose their own (ethnic) identity. impact of its own policy. This has two implica- impact of EU Roma policy: compliance with the tions. First, weak data mean weak accountability, Framework (production of NRIS), and a vaguely Consequently, the EU lacks a meaning- further limiting the influence EU institutions can worded "tangible improvement" in the cir- ful baseline against which to set targets or have on the actions of Member States. Second, cumstances of Roma people – in other words, measure progress. Indeed, the Framework a great deal of time and effort can be spent on closing the gap between Roma and the rest of has compelled the EU to produce its own devising special Roma reporting templates, data each country's population. In terms of the former, Roma data, commissioning surveys from the collection tools, guidance etc. to achieve admin- the EU Roma policy has been very successful, Fundamental Rights Agency (FRA). Carried out istrative coherence. ensuring that Roma are explicitly included in in 2011 and 2016, the results formed part of governmental agendas across the EU. In most of the EC's own assessment of the Framework One solution to the data problem could be to its annual communications on the Framework, and have been widely quoted in the policy formally identify all Roma people (to establish discourse. However, these results do not tell an EU Roma register) and then monitor what us much about the Framework’s impact, not happens to those people. The racist impli- only because they are four years old, but cations of such an idea are obvious, but also because the surveys were only carried out in illustrate that the next Roma framework has to  Measuring the impact on nine Member States! What they do show is find the right balance between the interests of the lives of real people has that over the first five years of the Framework, prescriptive ethnic policy and the needs of people proven immensely difficult the FRA could identify only slight improvement who require stronger citizenship to secure equi- at the European level. in six of 16 policy areas. table treatment from their national authorities.

59 - DOSSIERS ROMA: TOWARDS A NEW EU FRAMEWORK

EU MEMBER STATE FLAG ■ Average estimate used by the Council of Europe ● Estimate as % of total population

FRANCE Figures on ■ 400 000 ● 0.62% Roma population

Producing figures about the Roma population in the European Union is a complex problem. As Elena Marushiakova and Vesselin Popov describe on the following pages, many ethnic identities are often indistinctively lumped together under the concept of 'Roma'. In addition, there are divergences between what is called the emic and the etic perspective in PORTUGAL ■ 52 000 anthropology and behavioural sciences: who ● 0.49% perceives themselves as 'Roma', and who is SPAIN ■ 750 000 labelled as such by others. ● 1.63%

Nevertheless, the existence of Roma policy requires some conception of the size and circumstances of the target population. The EU takes the core 'fact' that there are 10-12 million Roma in Europe, six million in the EU, from national Roma population estimates published by the Council of Europe. However, An average of 63% of Roma aged 16-24 are NEETS those figures aren’t based on any scientific survey, but represent guestimates that almost (Not in Education, Employment, or Training), in 9 always exceed the findings of specific surveys EU Member States and are far higher than the number of people Young Roma aged 16-24 years neither in work nor in education who self-identify as Roma in censuses. or training as their main activity, by EU Member State (%).

100

The Roma population estimates in the 90 82 79 81 81 map should be understood as discursive 80 77 77 77 72 74 72 67 70 details rather than objective reflections 70 65 65 63 64 63 of social reality. Similarly, the scale of the 60 61 60 55 52 52 52 disadvantages that the EU Roma Framework 51 51 52 50 51 seeks to address is illustrated in the charts. 38 38 40 36

However, these headline statistics of 30 deprivation do not tell us about the conditions 20 19 19 18 17 16 14 of Roma in Europe as they relate to only 10 12 11 8 nine out 27 Member States (Bulgaria, Czech 0 BG CZ EL ES HR HU PT RO SK Total Republic, Greece, Spain, Croatia, Hungary, (9 MS) Portugal, Romania, Slovakia). In addition: ■ Roma women ■ Roma men these most recent figures we used are from ■ Roma - country total ■ Eurostat NEET rate 2015 2012 and 2016.

- 60 POLAND The Progressive Post #14 ■ 32 500 ● 0.09% BELGIUM ■ 400 000 ● 0.62%

CZECH REPUBLIC ■ 200 000 ● 1.90% SLOVAKIA GERMANY ■ 490 000 9.02% ■ 105 000 ● ● 0.13%

FRANCE AUSTRIA ■ 400 000 ■ 35 000 HUNGARY ● 0.62% ● 0.42% ■ 750 000 ● 7.49% ROMANIA ■ 1 850 000 SLOVENIA ● 8.63% ■ 8 500 CROATIA ● 0.41% ■ 350 00 ● 0.79% ITALY ■ 150 000 ● 0.25%

BULGARIA ■ 750 000 ● 9.94%

GREECE ■ 175 000 ● 1.55%

In the 8 surveyed EU Member States, 80% of Roma live below their country’s at-risk-of-poverty threshold 41% of Roma felt discriminated against At-risk-of-poverty rate (below 60 % of median equivalised income because of their ethnic origin at least once after social transfers) of Roma, compared with the rate of the general in the past five years, 26% in the last year population in 2014 (EU-SILC), by EU Member State (%).

96 98 Overall prevalence of discrimination based on Roma background 100 93 86 87 in the past 5 years and past 12 months, by EU Member State (%). 90 80 75 100 80 70 90 70 80 58 71 60 70 61 61 50 60 54 48 51 50 47 40 50 37 41 40 35 32 30 32 29 30 26 25 30 22 22 20 22 22 21 21 19 20 15 13 14 10 10 10 n.a. 0 0 BG CZ EL ES HR HU PT RO SK Total BG CZ EL ES HR HU PT RO SK Total (9 MS) (8 MS) ■ At-risk-of-poverty rate of Roma below the national 2014 threshold ■ Past 5 years ■ At-risk-of-poverty rate of general population in 2014 (EU-SILC) ■ Past 12 months

Sources : European Union Agency for Fundamental Rights (https://fra.europa.eu/sites/default/files/fra_uploads/fra-2016-eu-minorities-survey-roma-selected-findings_en.pdf), and Support Team of the Special Representative of the Secretary General of the Council of Europe for Roma Issues (https://rm.coe.int/1680088ea9). More information on the situation in Belgium, France, Ireland, the Netherlands, Sweden and the United Kingdom can be found under: https://fra.europa.eu/sites/default/files/fra_uploads/fra-2020-roma-travellers-six-countries_en.pdf 61 - DOSSIERS ROMA: TOWARDS A NEW EU FRAMEWORK

Who are the Roma? European Roma policy and definitions by Elena Marushiakova and Vesselin Popov

There is an EU Roma policy, but its intended beneficiary – Europe’s Roma minority – is hardly definable. Decades of publications by the Council of Europe and the European Union mainly show conceptual dithering, the various national terminologies do not make things clearer, and many groups' own conceptions of ethnicity add another layer of complexity. The lack of a consistent definition thus raises the question of whether European Roma policy is doomed to failure, as its target is not clearly defined.

n both academic and policy circles, the ques- added more communities to the list: "a) Roma, and varieties of lifestyles and situations of Ition Who are the Roma? has been asked Sinti/Manush, Calé, Kaale, Romanichals, these groups". many times during the last few decades. Boyash/Rudari; b) Balkan Egyptians (Egyptians European institutions and organisations have and Ashkali); c) Eastern groups (Dom, Lom and Whether (for policy purposes) 'Roma' made numerous attempts to develop at least a Abdal)" as well as administratively defined com- should be the collective label and which working definition of Roma for policy purposes, munities "such as Travellers, Yenish, and the communities should be included is further but this has resulted in differences in both the populations designated under the administra- complicated by the fact that European coun- umbrella term used and criteria for inclusion. For tive term 'Gens du voyage'". tries have adopted a variety of 'official' forms more than 30 years, the Council of Europe (CoE) – for example, 'Sinti und Roma' in Germany, has been actively involved in defining 'Roma' as The definition of 'Roma' used in the European or 'Romi, Aškalije i Egipćani' (Roma, Ashkali a European political issue, republishing almost Union is no clearer. In 2010, the EU's and Egyptians) in Serbia. Furthermore, in the same authoritative book on the subject but Fundamental Rights Agency noted that: "The Spain, the term 'Roma' is not used at all (other with three different titles –Gypsies and Travellers term 'Roma' is used as an umbrella term includ- than in translation) while until recently, the (1987); Roma, Gypsies, Travellers (1994); Roma in ing groups of people who share more or less pinnacle of Roma representation in Hungary Europe (2007). In its 2012 Descriptive Glossary similar cultural characteristics, such as the was the Országos Cigány Önkormányzat of Terms Relating to Roma Issues, the follow- Roma, Sinti, Travellers, Ashkali, and Kalé". (National Gypsy Self-Government). Curiously, ing institutional definition appears:"The term 'Roma' is often perceived as a term from the 'Roma' used at the CoE refers to Roma, Sinti, The 2011 EU Framework of National Roma English language, which translates the local Kale and related groups in Europe, including Inclusion Strategies meanwhile postulates: nomenclature. Travellers and the Eastern groups (Dom and "The term 'Roma' is used […] as an umbrella Lom), and covers the wide diversity of the which includes groups of people who have This inconsistency does not simply reflect groups concerned, including persons who more or less similar cultural characteristics, ethnographic diversity, as none of these identify themselves as 'Gypsies'". such as Roma, Sinti, Kalé, Gens du voyage, definitions contain criteria according to etc. (later extended to 11 named groups) which all the named communities fall Yet three years later, the Committee of Experts whether sedentary or not. It also includes under a common (and de facto political) on Roma issues at Council of Europe (CAHROM) Travellers, without denying the specificities category. Their selection could be almost

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random ("groups of people who share more own identities. For them, 'Roma' is an etic • a return to the combination of 'Roma and or less similar cultural characteristics"). Some identity – one that is applied from the out- Travellers' (which is a de facto temporary parts of a definition refer to lifestyle (nomadic side, from the perspective of the observer. compromise of the various criteria in build- or sedentary). However, this is really a pseu- EU Roma policy has not led to the displace- ing the definitions) do-criterion, qualified by the observation that ment of non-Roma 'Roma identities' and the the actual lifestyle does not matter ("whether broad application of the term 'Roma' does not • a transition to a socio-political category like sedentary or not"). lead to serious conflict between communities 'RT… etc.' (by analogy with 'LGBT… etc.') and due to the complex way in which they manage a further development in this direction. identity (which is not only multidimensional but always contextual) and allows for the However, none of these options will lead to  Public presentations acceptance of a universal Roma identity as a a successful European Roma policy, as they of EU policy always political category, at least by Roma activists do not provide an answer to the two main underline that Roma are and advocates. questions: the European Union's largest ethnic minority. European institutional Roma definitions • what this policy should be – mainstream also fail to recognise the importance of (civic-based without excluding or stigmatis- identity-hierarchies, including civic national ing 'Roma') or focused on ethnic specificity, identities. This level of identity is especially and therefore de facto identity politics The division of the general 'Roma' category relevant today when many 'Roma' from east- into two components, 'Roma and Travellers', ern European countries have migrated to • who is responsible and accountable for does not make things clearer either. While the western European countries. A significant Roma policy – the EU or Member States? 'Travellers' criterion is straightforward – refer- number of migrants remain invisible for ring to communities that lead (or have led) a European Roma policy, and are treated as EU But even if answers could be formulated, the nomadic lifestyle, it remains completely unclear citizens, until they are targeted as a detached current division of competencies means that by what criteria the communities designated as migrant community with specific problems, it is up to each member state to provide its 'Roma' are selected. thus becoming categorised as Roma and tar- own interpretation of Who are the Roma? for gets of Roma policy. policy processes. The Framework has shown Paradoxically, the EU is unwilling to apply a cri- that not knowing 'Who is Roma?' has not proved terion of ethnic origin for Roma as the object an impediment to the formulation of EU Roma of its only ethnic policy. However, the public policy. At the political level, further discussion is  The current division of presentations of EU policy always underline meaningless and could go on indefinitely. The that Roma are the European Union's larg- competencies means that reasons for the failure of the European Roma est ethnic minority. Extensive ethnographic it is up to each Member policy must be sought evidence demonstrates that many of the com- State to provide its own munities targeted by European Roma policy interpretation of Who are the are descendants of Medieval migrants from Roma? for policy processes. the Indian subcontinent and it is this common origin on which communities construct a sense of shared identity (even though some of these The ambiguities of the European definitions communities expressly deny an Indian origin). of Roma indicate a preference for discursive Nevertheless, the adoption of a criterion of ori- inclusion over evidence-based clarity in a con- gin, would not solve the EU's definition dilemma text where the first Framework has had little and would exclude many western (nomadic) impact on reducing inequality or exclusion. communities – for example, Travellers, Yenish, Further attempts to formulate new definitions Gens du voyage and Abdal. are to be expected, with different options

being possible: Elena Marushiakova, Research Professor at the A majority of those categorised as 'Roma' University of St Andrews (Scotland), president of the use this concept also as their own identity – • a further enrichment and refinement of the UK-based Gypsy Lore Society as an emic identity, one seen from within a term 'Roma' as an ethnic category, which Vesselin Popov, Historian, social group. But many others have different enhances its significance for identity politics University of St Andrews (Scotland)

63 - DOSSIERS ROMA: TOWARDS A NEW EU FRAMEWORK

EU Roma Framework: listening first! The post-2020 EU Roma policy: how to avoid future failures by Iulius Rostas

The current EU Roma Framework runs out this year – but despite almost a decade of policy activity, not much improvement has materialised. A new framework is in the making – and only actively listening to Roma people could provide a chance of making it better this time. The very existence of an explicit EU Roma policy entails an obligation to involve Roma people in the processes. For that to happen, a large-scale bottom-up process is required.

he European Union's first Framework for involvement of Roma people in the devel- of prejudiced opinions about Roma that TNational Roma Integration Strategies opment and delivery of the Framework is evident throughout Europe, combined (2011-2020) has failed to deliver the prom- itself and its associated National Roma with the manifest overrepresentation of ised "tangible improvements" in the lives of Integration Strategies (NRISs) in the Member Roma among the poorest and most mar- some of the most disadvantaged people in States. The Framework has also suffered from ginalised, clearly indicate the consequences Europe and has even contributed to racism unreliable data, inadequate problem definition of how Roma are defined and presented by and further exclusion. A report of the Open and lack of regulation. political institutions. Society Foundations states that "although there are a number of achievements since During the EU enlargement process, coun- The difficulty in understandingwho Roma are, 2011, the EU Roma Framework […] fails to tries from central and eastern Europe with discussed by Elena Marushiakova and Vesselin achieve its goals in all policy areas, includ- significant Roma populations were required Popov, is reflected in ambiguous and incoher- ing discrimination". The Roma Civil Monitor to produce written commitments towards ent definitions of the Roma used by European 2020 summarising findings by more than 90 their demographically significant Roma institutions. Both the Council of Europe and the non-governmental organisations and individ- minorities to demonstrate compliance with European Commission (EC) have used their ual experts from civil society in 27 EU Member the Copenhagen Criteria. National Roma pol- authority to impose definitions of Roma that suit States reveals a similar picture, with signifi- icies were developed further as part of the their institutional needs rather than reflecting cant policy shortcomings and drawbacks in voluntary Decade of Roma Inclusion, which social reality. Despite the aspiration to sup- different areas of the EU Framework. also included some west European states. port Roma, putting together such socially and culturally diverse communities under To ensure that the European Commission As Roma have become the focus of spe- an umbrella term – which happens to be the does better when the Framework is renewed cific policies, one of the major challenges name of just one of those groups – deprives later this year, we need to examine the facing academics and policymakers has communities of agency and is akin to a form shortcomings of the present one. One of been how to conceptualise the Roma for of colonialism by targeting groups without any the most significant has been the limited policy purposes. The depth and spread democratic process of self-definition.

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Even though the Roma Framework is the EU's different platforms for knowledge production Those representing Roma at local level could only ethnic policy, the EC has been unwilling to and debates, a number of Roma artists, theatre delegate representatives for regional and adopt an exclusively ethnic definition of Roma. groups and even a European Roma Institute for national deliberations on Roma policies. At This institutional ambivalence has direct impact Arts and Culture. Roma youth have established regional and national level, the authorities on the quality of policy as shown by the vague several transnational networks for activism, should make sure that also those minorities 'official' estimate of the number of Roma in including alliances for specific thematic areas among Roma whose identity is stigmatised and Europe, but also the lack of disaggregated such as women’s rights, combating antigyp- whose voices are not heard – such as LGBTIQ- Roma data to inform the development and syism, and Holocaust commemoration. These people, persons with disabilities, or persons monitoring of policy initiatives. developments should be kept in mind while living with HIV – are represented. An intersec- designing policies towards Roma. These groups tional approach to Roma policies would thus be The perception of Roma applied by policymak- have the knowledge and capacity to define the made possible. These forums of deliberation ers not only relates to who is targeted, but also problems faced by the Roma and to articulate should hold regular meetings. Transparency, how 'Roma issues' are defined. The current the collective interest of Roma. equality, inclusiveness, civility and accounta- framing of Roma as a vulnerable group leads bility to the local communities should govern to a definition of mutually reinforcing prob- A central aim of the Roma Framework is to the work of these forums. lems that Roma are facing: social exclusion, raise the priority within public authorities poverty, discrimination in education, employ- across the EU of improving the situation of The EU should make sure that such a mecha- ment, housing and health. Such a framing is Roma. Yet despite the EC actively encouraging nism is in place in each member state and that it not only reductionist but also misleading. As Member States to utilise Structural Funds, the is functioning. Furthermore, the EU could estab- a consequence, some experts argue, the EU limited investment in and impact of the NRISs lish such a deliberative forum itself, to make Framework, "addresses the situation of Roma show that the voices of Roma remain marginal sure that its policies receive input from Roma. as an 'integration' challenge to be tackled via in the competition for resources. The next The EU could also provide support to Roma socio-economic policies, and not as historical- framework therefore needs to ensure that groups to make sure that they can participate ly-rooted 'antigypsyism', to be tackled via Rule the Roma's voice is heard during the pro- equally in this setting. In addition, the EU could of Law and transitional justice measures". cess of allocating resources for different bring expertise, provide financial instruments societal problems at all levels: EU, national to Member States, ensure coordination among The prejudicial public presentation of Roma and local. Member States, and among multiple levels of could be avoided by listening to Roma people. governance, of the issues faced by Roma. The The very existence of an explicit EU Roma policy The next EU framework must aim to set a EU should also ensure that Roma participation entails both a practical and moral obligation to mechanism for giving the opportunity to Roma is not limited by citizenship, so that Roma who involve Roma people in policy processes, but to define their interests and negotiate their are on the territory of another member state Roma participation must mean more than invit- priorities. Such a mechanism should set rules would not be excluded. ing a handful of English-speaking advocates to for Roma women’s representation at all levels Brussels. To build trust and social solidarity based on parity. The process should start at Such an EU policy would not only benefit Roma, between communities and authorities, past a local level, where local authorities, Roma but all EU citizens. The EU will have to adapt its discrimination and oppression need to be organisations and informal community struc- institutions and agenda to ensure more equal- acknowledged and those who are the subject tures, including experts, should invite all Roma ity, social justice and respect for the rights of of policy initiatives need to be empowered to groups to deliberate. Thus, all voices would each human being. express their preferences, define their interests be represented and not only those of certain and negotiate their priorities in relation to other groups of Roma. Moreover, the priorities would groups and institutions. be contextualised and not imposed from above without considering the needs and particular Roma activism and advocacy has grown signifi- situations of the various local communities. In cantly in recent decades. In each country there this way, the diversity among Roma would not are Roma organisations that have implemented only be respected, but also represented. In projects and programmes and there is a grow- addition, such a process would provide those ing number of Roma graduates, some of them groups that are now categorised under the from world-class institutions. There are Romani umbrella term 'Roma' with an opportunity to Iulius Rostas, Visiting Professor at the Central Studies programmes at different universities decide whether or not they accept to be part European University and the National School of and Roma professors and scholars, there are of the larger 'Roma' category . Political Science and Administration (Romania)

65 - INTERVIEW THE TRANSFORMATION OF EUROPEAN SOCIAL DEMOCRACY

"The decline of the centre-right has been at least as prominent as that of the centre-left" Interview with Herbert Kitschelt, by Tarik Abou-Chadi

The Duke University professor Herbert Kitschelt is one of the most influential contemporary scholars of political parties. He is particularly well known for his redefinition of the competitive space for political parties in western Europe. In this interview, he discusses his 1994 book, The Transformation of European Social Democracy, where he analyses how a second dimension of political preferences became politicised from the late 1960s, and how this affected party competition, especially for Social Democrats. Progressive parties indeed struggled to integrate the new demands of activists, especially – but not only – surrounding environmental issues. Many of the core questions raised in Kitschelt’s book remain relevant even 25 years later.

Tarik Abou-Chadi: The core argument in professions. This changed power relations individuals should be able to bring themselves your book is that the demand side of political in families and put a whole range of issues in and articulate their differences, their differ- competition has changed in post-industrial on the agenda that were not traditional ent lifestyle concerns, and their concern for societies. What are the main drivers of this bread and butter questions for political par- collective goods that affect their projection change? ties. And this contributed to a new profile of of a good life in society. These are all ques- Herbert Kitschelt: The main driver of the preferences. tions that were not part of the debates that change has to do with the occupational struc- structured much of post-World War II politics, ture, with an expansion of what is summarily T A-C: How have these changes specifically until the 1960s and 1970s. 1968 was, in many referred to as the rise of the service sector, affected political preferences? ways, a movement around these questions of the decline of manual blue-collar labour, and HK: My main argument is that it has opened expression, governance, individual autonomy, especially the rise of highly skilled non-routine up a second dimension of preferences, a new more so than – as it appeared at the time – a professional occupations. The other driver is set of issues that on the level of preferences revival of conventional Marxist thinking about the change in family structure. This interacts – but not necessarily on the level of how they class and property and redistribution. with the occupational structure because a crit- were bundled in political parties – cross-cut ical catalyst for the demand-side changes was distributive questions. I would call them ques- T A-C: The politicisation of these issues has led the full access of women to higher education, tions of political and social governance, and to pressure on established parties to re-adjust and the access of women to the expanding questions of how individual autonomy should their positions to stay electorally relevant. Can job market, especially in the sociocultural structure social and political institutions; how you elaborate a little more on this argument?

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HK: You had a generation of young activists T A-C: As a result, "left-libertarian chal- T A-C: Against the backdrop of your book, who articulated these demands, first in protest lengers" emerged in many west European how would you evaluate the Third-Way strate- events and social movements, but who then countries, most typically Green parties. Social gies of Social Democratic parties in the 1990s? looked for a political outlet. And so they went Democrats really were in a dilemma. What is HK: My book never uses the notion of the Third looking for political parties they could enter. this dilemma of Social Democratic parties? Way. I did not envision that Social Democrats Many of these activists were also interested in HK: The dilemma is that you cannot simply would have to embrace a strategy of market economic redistribution, so a natural catalyst incorporate new interests without paying a cost. liberalisation, if that is part of what is identified for these demands became the existing Social There is no free lunch. Once you have salience of with the Third Way strategy. I anticipated that Democratic parties. All across the western hem- the second dimension, you are facing a trade-off. many of the redistributive themes and demands isphere, there was a wave of entrants into these If you prime this and you take a position on this, of Social Democracy, like state-regulated parties in the late 1960s and throughout the you are likely to demobilise and lose traditional sectors, and a generous, encompassing and 1970s, to see whether the dominant coalitions core voters. And the question then is: how far can redistributive social welfare state, would all be of these parties could be recast to accom- you go in accommodating new interests? At what fine with the new constituencies. The question modate these interests. An early, very visible point will you lose fewer existing core voters than was rather to supplement it with the second-di- incarnation was the Democratic Convention in adding new voters by modifying your agenda? mension agenda. What the Third Way does is to the United States in 1968, where a traditionalist This is something that Social Democratic parties rethink the position of Social Democrats on the was nominated, Hubert Humphrey – but there have had to address with trial and error. You find governance of the economy with implications was a giant uprising of young grassroots activ- quite stark contrasts in the election outcomes to restrain economic redistribution. I still think ists against the traditional operating mode of among these parties, which have to do with the this is an add on or a separate step that Social the party. All across the western hemisphere, ways that different parties explored and acted Democrats started undertaking in the second Social Democrats had to come to terms with on this new challenge. half of the 1990s. I'm even not sure how fair it that and it was a very difficult internal struggle. is to describe this as a 'third way'. I think the Many of these new activists then left to do their T A-C: Another party family that has been conventional description of the Third Way is that own thing, which created for Social Democrats increasingly relevant for studying party com- it is a market liberalisation perspective of social – for the first time since the 1950s, since the petition in a post-industrial society is the democracy in light of the persistent defence by decay of the then still existing communist par- radical right. How does the radical right fit Social Democrats of the welfare state, even in ties – competition with other challenger parties into the framework that you just described? times of slow economic growth. that also embraced redistributive interests, but HK: I think of them as a mirror image. Many of plus other agenda items that were not the natu- these people are just the opposite of what the T A-C: How do you evaluate the consequences ral territory of Social Democratic parties. new left-libertarians stand for: right authoritar- of these policies on electoral outcomes? ians, with a characteristic socio-demographic HK: Once we are in a two-dimensional space T A-C: Why was it so difficult for Social profile, people who have been alienated from and we have multiple parties, there are no Democratic parties to integrate these inter- the left at least once on second-dimension more equilibria. Many Social Democratic par- ests and these people? politics, and maybe even twice, if they also ties face multiple trade-offs nowadays. They HK: I think in the 1970s and 1980s it was pri- opposed redistributive demands. The ques- have essentially a choice between competing marily because the working class – a traditional tion of how radical right parties come about for the median voter and a variety of outbound less-skilled manual core constituency of the has a lot to do with the strategising of the main strategies to try to prevent or to regain voters party – did not perceive these as high priority moderately conservative and progressive par- that are on the verge or that have already made items. The kinds of redistributive interests that ties – typically, the Social Democrats on the one the step to more radical parties – either parties were articulated by these two different types of side, and Christian Democrats and conservative that are more radical on the second dimension, constituencies began to diverge, in addition to parties on the other. The more they converge like ecology parties, or on the first dimension, the fact that a second dimension, with libertar- on the economic dimension (for reasons that like new socialist parties. ian governance interest, was being asserted by have to do with questions of the development If the Social Democrats go toward the ecolo- the new entrants and challengers of the party of the welfare state, as well as the increasing gists as an outbound strategy, they are likely establishment, that the older generation could implausibility of a dramatic socialist economic to lose very much of their conventional low- not stomach. The crystallisation point in the planning alternative), the less high are the er-skilled, blue-collar and clerical support. And 1970s and 1980s was clearly the question of stakes to vote on that dimension. This releases if they go toward a more conventional redistrib- ecology. The nuclear power conflict, for exam- people to vote on the second dimension, on utive strategy, with an emphasis on protecting ple, was a conflict that often pitted trade unions which they see starker differences between pensions and unemployment (which are prob- against new social movements. political parties. ably the two most important concerns for these

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constituencies) then the Social Democrats are the landscape has become much more complex immigration, sometimes labelled the 'Danish likely to lose the support of their newer poten- and much more two-dimensional even in terms strategy', which seems to be very prominent tial supporters. They could also just let people of party competition, if not three-dimensional, among Social Democrats themselves. What is drift to the left, knowing that, whether it's the depending on how we think the questions of your take on this strategy? ecological or whether it's the redistributive left, immigration and citizenship play out. I think HK: It's another trade-off. If you go down that none of these new parties can form coalitions there's lots of work to be done on the side of route, you may at the margin gain some voters with parties of the political centre-right and articulating a proper behavioural theory of party back that you lost in the past, but I'm scepti- the right spectrum, and they could try to move competition that goes beyond a still fairly tradi- cal that it will be a lot. I think once people are toward the centre, becoming a wishy-washy tionalist view of spatial party politics. gone, many of them will not return. It may be a centrist party with mildly leftist economic views justifiable strategy if those few people that you and a political governance commitment. That T A-C: I feel the book is quite optimistic about want to gain at the margin happen to include appeals to some voters, but it will be a great the potentials for Social Democratic parties: the median voter-puddle in a democracy, electoral sacrifice. you say there is the opportunity to forge new in a way that no government can be formed alliances that can be successful in changing against you. But this will come at a cost: Social T A-C: A little more than 25 years after your socio-economic context conditions. Now Democrats will not win votes from that as a book came out, is there something in it which we have seen the strong decline of Social party, they will only increase their bargaining you would say still very much holds today? Democratic parties, however, are you still leverage. The Social Democrats in Denmark HK: The fact that there is a second dimension. optimistic? lost votes in the most recent election, but they The second dimension in European election HK: No, with regard to the present, I’m not gained bargaining power because no govern- studies since 2009 has progressively become terribly optimistic that Social Democrats can ment can be formed against them. a more important determinant of vote choice. resolve the trade-off that appeared with the The other thing that still holds today is, of new second dimension by asserting a new T A-C: Do you think Social Democrats with course, the trade-offs that Social Democracies hegemony as a label. I'm optimistic in the that strategy could then still be the leading face. These trade-offs, in light of the additional sense that many of the Social Democratic party in that left coalition in the long run socio-economic problems that have intensified concerns – a baseline of social equality, though? since the 1980s, have only become starker, and respect and autonomy and reciprocity among HK: I don't think so. I think that the terrible they have ultimately led to a differentiation of all citizens, and that this has to be socio-eco- choice for Social Democracy is in a way a the left party spectrum. There are some Social nomically guaranteed – have been embraced collective action problem. Either they maxim- Democratic parties that, to a large extent, can by a number of other parties. In many ways, ise their vote as a party by competing mostly preserve their status as the dominant party of Social Democracy has become a victim of its against parties on the economic and the polit- the left and that can also claim to dominate own success, and it is not by accident that ical left – but that will shrink the left bloc and executive office in the appropriate coalition. We Social Democratic parties have often declined it will deliver the collective bad of not having now know that Social Democrats have shrunk the most in the places where, over the dec- access to the median voter-puddle (there’s everywhere and become just one player in a ades, they have become most successful in no single median voter in a two-dimensional leftist field. In that sense, you could almost say implementing their ideas of welfare state. space) and it will probably entrench cen- that the subsequent development shows the tre-right, sometimes in alliance with far-right, limits of political choice. Currently, the most successful Social Democratic governments – or (with clenched teeth) they parties are on the European periphery: in compete for this middle morass, this middle T A-C: What would be a thing where you think, Portugal and in Spain. And Portugal for sure is muddle, but then they are destined to lose I got that completely wrong? not a trailblazer of a contemporary knowledge votes. This is not going to be pleasant. We have HK: What we have seen since the 1980s is a society and advanced welfare state. I think seen this in the performance of the German much stronger articulation of the question of Social Democracy is a ladder. To use a metaphor Social Democrats, the Austrians… how issues and dimensions gain salience. This from Ludwig Wittgenstein's Tractatus Logico- is something I did not pay enough attention to. Philosophicus, it's a ladder which people climb T A-C: Is there a similar dilemma for the main- Moreover, I thought that, in terms of party com- up and then they throw it away. stream right? petition, the two preference dimensions could HK: Yes, I would say so. I find it strange that to essentially still be collapsed by political parties T A-C: Another current narrative is the idea of this very day there hasn't really been a counter- in one main dominant dimension, running from reviving Social Democracy with more authori- weight to all these studies about the centre-left left-libertarian to right-authoritarian. While this tarian positions on the second dimension, and by studying the erosion and decline of the is still a little bit the case, I think since the 1980s especially with more restrictive positions on centre-right. The decline of the centre-right

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has been at least as prominent as that of the You can come up with a typification of four who are yearning for the return of a society that centre-left. Just think of what happened to groups. You have low education-low income belongs to a bygone era. These are the types Christian Democratic parties around the world. – these are mostly blue-collar workers but not who want to make America great again. The German Christian Democratic Party is the entirely as there is a low-skilled personal service sole leftover holdout of the centre-right, still and clerical contingent there and also a small T A-C: Confronted with a global pandemic that claiming hegemony over the right-wing bloc. business contingent. Then you have low educa- is going to change a lot of our politics, do you Consider what happened to the Dutch, the tion-high income. This is a declining group that see potential new coalitions? Belgians…, and you see a similar trade-off on used to consist of skilled workers, particularly HK: Reading the tea leaves, I think that the the right as well. in small companies, and many traditional small question of lockdown or not will be mapped business or petty bourgeois people. They are on the main line of the existing divide – with T A-C: And how can we then describe that in not redistributive, and they are also traditional left-libertarians opting for lockdown, even terms of socio-structural trade-offs? authoritarian, whereas the former group – low though, on the face of it, this is an authoritar- HK: If centre-right parties ally with radical right education-low income – are redistributive, but ian regulation and a restriction of an individual parties, they are in danger of losing a lot of their traditional authoritarian. Then you have a group choice. By contrast, the position to open up and ‘Bildungsbürgertum’ (established, economically that did not exist 50 years ago – high educa- return to free market transactions is going to be conservative voters – but in terms of political tion-low income people. This group has now typified and projected on the right. governance and civil liberties – centre or cen- – depending on the country and the survey you tre-libertarian voters). They will get cold feet to are looking at – grown to between 15 per cent I read someone saying that we will have an buy into this agenda, particularly when it comes and 25 per cent of the population. The strongest increase in inequality in the coming 18 months, to restrictions on immigration and counteracting plurality in this group is socio-cultural profession- which under other circumstances would hap- multiculturalism, and also other cultural restric- als. Another important characteristic of this group pen in 20 years. The winners of this process tions that may come with a more forthcoming is that women are somewhat over-represented are mostly professionals, people who can radical right strategy. I think the United States in it. This is, in our simplified terms, the most work from home. There's already a group of is the ‘exhibit A’ when it comes to that. There important constituency for left-libertarian politi- economists at the University of Chicago, who we don't have a coalition with a radical right cal appeals. Then you have a fourth group: high have come up with a measure of the percent of party but rather a capture of the conventional education-high income people. This is essen- people who can work at home without infring- centre-right party by radical right forces. tially the business-finance-tech professionals ing their earning capacity by country, by state, with market-oriented economics and libertarian even by metropolitan area. The highest rate in T A-C: In a new research project, you use a governance concerns. These are the people who Europe is in Sweden, with 58 per cent working simplified way of describing the socio-struc- are likely to defect from moderate conservative from home without problem; the lowest is in tural base for these transformations, having parties if they drift toward the radical right. Greece with 42 per cent. I think this is a division one dimension that is income, and another that will articulate divides also within the left one that is education. How does this allow But the argument of this work is essentially and that makes it more likely that less skilled us to understand politics in the post-industrial that the old core groups, the low income-low people move off to the radical right. societies and the knowledge economy? education on the left side, and the high edu- HK: In order to do long-term studies of political cation-high income on the right side, have realignment, we need three types of informa- now become swing groups – whereas the tion. We need some demographic variables, anchors of the two blocs have become high This is an abridged and edited version of we need the policy preferences of people, and education-low income people on the left side Tarik Abou-Chadi's interview with Herbert we need vote choice. These three things found (libertarian and redistributive), and low educa- Kitschelt which is part of the podcast series together in surveys have really only existed tion-high income people on the right side. One 'The Transformation of European Politics' since the late 1990s. My co-author Philipp Rehm interesting insight this generates is that it is and I decided that income and education, and wrong to say that the working class is the core the interaction between the two, can give us of the radical right. The working class may be some simplification. Income is a predictor of over-represented in the radical right, but the where people stand on distribution and redis- group that is most strongly represented in the Herbert Kitschelt, Professor of International Relations, tribution. Education predicts positions on both radical right are actually relatively high earning Duke University, North Carolina dimensions. If you have a high-level education, people with low skills, who down the line face Tarik Abou-Chadi, Assistant Professor in you are against redistribution, but you are cer- this problem of status decline, both in economic political science at the University of Zurich, tainly for libertarian political governance. as well as in a more cultural, status sense, and Centre for Democracy Studies Aarau

69 - LIBRARY BOOK REVIEWS

Trade wars are not people's wars by Alvaro Oleart

Matthew C. Klein and Michael Pettis "Trade Wars are Class Wars"

Yale University Press, 2020

nderstanding the processes and causal degrees of inequality suffer from undercon- economic trajectories. Capitalism needs con- Umechanisms that determine our world sumption and underinvestment domestically, sumers to continue functioning and absorb the is the first step towards making good policy. and therefore need to find consumers abroad. production. Without a demand that meets the Matthew C. Klein and Michael Pettis’s book, The rise of globalisation in the last 30 years supply, either the supply will have to decrease Trade Wars are Class Wars, is an impor- has exponentially increased the interconnec- or be exported abroad. China’s rise as a global tant contribution to current debates about tion between countries. Global value chains trade leader has taken place at the expense trade and globalisation. The main argument are now the norm, as finished mass products of its own citizens, as its "high savings" model of the book is that "rising inequality within are made with components from different means that Chinese households consume a countries heightens trade conflicts between countries. Money travels the world at the lower percentage of the Chinese output than them". While trade conflict is often portrayed speed of light. The profits of exports that any other major economy in the world. The as a clash between countries, in reality it is take place in higher tax countries are shifted US is in a similar situation, but for different rather "a conflict mainly between bankers and towards subsidiaries in tax havens, which earn reasons. Its unsustainable financial system owners of financial assets on one side and unreasonably large profits. In this globalised attracts (too much) financial capital, desta- ordinary households on the other – between context, the measurement of trade in goods bilising capital flows across the world, while the very rich and everyone else". The book and services has to be accounted by savings, refusing to redistribute wealth within the US challenges the dominant understanding of investment and capital flows across countries, through a strong safety net and higher taxes trade policy, arguing that "the distribution of not only by imports and exports. The book’s on the rich. The US is therefore becoming purchasing power within a society affects its comprehensive analysis points to the huge dependent on consumers abroad rather than economic relations with the rest of the world". interconnectedness between countries, and on its internal demand. Trade conflicts between countries cannot be how their fate is inextricably linked. understood without an analysis of the internal For the EU, Germany’s case is particularly dynamics of these countries. These ideas are developed at length in the relevant. The German government was the first three chapters. The next three chapters main actor behind the budget limits agreed Following a Hobsonian and Keynesian per- focus specifically on the evolution of China, in the Maastricht Treaty (1992), the subsequent spective, Klein and Pettis argue that as the Germany, and the US over the last 30 years. Stability and Growth Pact (1997), and more wealthy do not spend similar proportions While these three countries have different recently the austerity that followed the euro- of what they earn compared to lower- and histories, the ideational framework laid out zone crisis. The German minister of finance middle-income groups, countries with high by Klein and Pettis works well to explain their during the latter episode, Wolfgang Schäuble,

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was so focused on the ‘black zero’ rule, by  The conclusion of Klein enforce measures such as a global wealth tax which the budget is balanced and the govern- and Pettis's book is or the elimination of tax havens. Additionally, ment does not need to borrow, "that staffers relatively simple: "to end if trade wars are indeed class wars, what are in the finance ministry dressed in black and the trade wars, end the class the social forces and transnational coalitions posed in a big circle to wish him farewell when wars." As the inequality that can put pressure on governments to he retired after the 2017 federal elections". between and within effectively address the increasing inequality This political stance led Germany to an excess countries is connected, the between classes? of savings, as wealth concentrated in the deepening of unregulated hands of the few at the expense of the many. Understanding trade wars as class wars requires globalisation reinforces it. Far from benefitting the average German, thinking differently about trade. Trade Wars are the obsession of the German government Class Wars makes an excellent case for it. with ‘balanced budgets’ has only increased inequality within Germany (and the EU as a political economy perspective, the book does whole) and dramatically reduced the average not offer structural solutions, and leaves the purchasing power of its own citizens. This has reader wondering how class wars can end. also limited the EU’s trade policy: as the pur- Klein and Pettis suggest addressing the "twin chasing power of middle- and lower-income problems of income inequality and the world’s groups is reduced, production has to be either unhealthy dependence on the US financial reduced or allocated elsewhere. system" through a new Bretton Woods agree- ment that would reform the global financial system, increase taxes on high earners and on inheritance, and introduce higher minimum THE POLICY IMPLICATIONS OF wages and stronger social safety nets, which TRADE WARS ARE CLASS WARS ought to result in a redistribution of wealth.

The conclusion of Klein and Pettis's book is While these policy proposals go in the right relatively simple: "To end the trade wars, end direction, the structural problems of global the class wars". As the inequality between capitalism described in the book, and its inher- and within countries is connected, the deep- ent tendency towards accumulation of wealth, ening of unregulated globalisation reinforces remain unaddressed. Individual governments’ it. Rather than cooperating in building global actions and a new Bretton Woods agreement labour and environmental standards, the are unlikely to mitigate class wars across a increasing inequality within countries gives globalised world. As Dani Rodrik argues in The them incentives to instead compete with each Trilemma, in an already globalised economy other and push for lower wages, weaker envi- it is no longer possible to have both democ- ronmental and labour regulations and lower racy and national sovereignty. One ought to taxes in order to attract investment and fight choose. A renewed Bretton Woods agree- for consumer markets. ment seems to be an attempt to reconcile deep economic integration, democracy and

Paradoxically, in spite of the skilful structural national sovereignty, instead of imagining new Alvaro Oleart, Postdoctoral Researcher at analysis of trade and global capitalism from a or reformed global institutions that are able to Vrije Universiteit Amsterdam

71 - LIBRARY BOOK REVIEWS

Automation: a boon or bane for workers? by Justin Nogarede

Carl Benedikt Frey "The Technology Trap: Capital, Labour and Power in the Age of Automation"

Princeton University Press, 2019

he economic historian Carl Benedikt revolutions, he notices that new technology banned the application of new technologies TFrey is perhaps best known for his esti- can either enhance workers’ skills and make in the workplace that risked replacing work- mation back in 2013 that 47% of all jobs in them more productive, or it can outrightly ers. As late as the start of the 19th century, the US were at risk of being substituted by replace them and push them into lower-paid the Emperor of Austria, Francis I, blocked the computers. Last year, he followed suit with jobs. In the latter case, the so-called ‘friction’ construction of new factories in Vienna, and a book, in which he looks at the history of or adjustment costs can easily span multiple banned the importation of new technology. He automation and its social and political con- generations, leading to economic hardship was by no means the only one. sequences, before predicting what it means for workers, and ultimately social and political for the future of work. His The Technology upheaval. He fears that if left unaddressed, Why then, did the industrial revolution take Trap: Capital, Labour and Power in the the not-so-short-term losers of automation off in the UK? Frey shows how the rise of a Age of Automation can be read as a call to may end up blocking new technologies and new commercial class made all the difference. policymakers to take the losers of automation hence undermine the long-term prosperity of Unlike the landed aristocracy, they had an seriously. If anything, the coronavirus crisis society as a whole. This, then, is the technol- interest in technological innovation to increase has made this 2019 publication even more ogy trap. profits, and also possessed the necessary polit- relevant. The lockdowns will likely acceler- ical clout in Parliament to push for it. It also ate automation in the workplace, and in the One might think that it is unlikely that workers helped that the British were locked in interna- wake of the resulting economic decline and would rage against the machine in this day tional power struggles and empire-building, rising unemployment, questions around jobs and age. But Frey shows how exceptional which convinced other domestic elites that and automation will become more politically today’s pro-automation consensus actually holding back technological innovation would fraught than they have been up to now. is. For instance, average incomes in Spain leave the UK more vulnerable and in a worse hardly increased between the 1st and 18th position to defend its interests abroad. Workers In his book, Frey takes issue with an eco- centuries! Such stagnation had of course did oppose the introduction of spinning jen- nomics profession that often relies on an many reasons, but as Frey makes clear, out- nies, power looms and other technologies ahistorical and simplistic view of technolog- right opposition to new technology played an that threatened their livelihoods, as they saw ical progress – namely, that it allows us to do important role. For centuries, powerful guilds their living standards deteriorate from roughly more in less time, and that everyone will be opposed innovations that could make their 1760 to 1840. But they lacked political power better off. That may be true in the long run, members obsolete. Fearing political upheaval, and so the riots against the introduction of but when Frey looks at the history of industrial the ruling class usually sided with labour and new machinery were ruthlessly repressed. For

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instance, as early as 1769, Parliament intro- replacing, and the consequences for workers moment the UK started to restrict child labour duced the death penalty for the destruction are vastly different. But can we ascribe such from the 1830s onwards, things started to of machinery, and Luddites were routinely labels to technology, outside a given social improve for workers? hanged. But, as Frey notes, unlike the Luddites and economic context? At times, he admits during the Industrial Revolution, today’s work- that there are many other factors at play in There are economic historians, such as Carlota ers have the right to vote. determining the fortunes of workers, such as Perez, who have underlined the importance of education levels and labour market institutions public policy in the shaping of industrial revo- For the immediate future, Frey seems rather (collective bargaining, minimum wages, etc). lutions. The New Deal would be an example of gloomy. In his view, the wave of labour-en- And yet, he considers that the rising incomes that in the past. Today, the Green Deal looms hancing technologies, which paved the way for workers in the West in the 20th century large. For Frey, such interventions cannot for a large middle class in many western coun- can best be explained by technology itself. really be considered, because technology is tries over the course of the 20th century, has Similarly, for Frey, the negative outcomes for exogenous to his model. But discussing the come to an end. Since the 1980s, workers’ workers since the 1980s are mainly the result implications of artificial intelligence for workers, wages have stopped rising in tandem with of labour-replacing computer technology, and without considering who is shaping the technol- productivity growth. According to Frey, the to some extent globalisation. But what about ogy – currently less than a dozen global firms main reason is that many inventions of the the deregulatory agendas in many countries, – makes for an incomplete picture. computer revolution serve to automate exactly the decline in trade union membership, and those types of routine, mid-skill jobs that were the financialisation of the economy? performed by the middle class. In his words, "computer technologies have shrunk the size Moreover, because Frey treats technological of the middle class, put downward pressure innovation as a given, his policy suggestions on unskilled workers’ wages, and reduced come across as unduly narrow. If indeed labour’s share of income." And after review- technology is a deus ex machina, then policy- ing technological developments in the field makers can only try to dampen the resulting of artificial intelligence, he expects the trend inequalities as best they can, with retraining of labour-replacing technology to continue, initiatives, relocation vouchers, and income perhaps for decades, with unfortunate con- support schemes. But is that really all that sequences for low-skilled workers, especially policymakers can or should do? Early on, those without a higher education. Although Frey quotes the historian Jane Humphries, Frey focuses on the US, this phenomenon and notes that during the industrial revo- of labour market polarisation has also been lution in the UK, "manufacturers were well observed for many European countries. aware of the advantages of inventing in ways so ‘as to bypass artisan practices and con- The book offers a rich account of the history trols and so sap resistance to change.’" In of automation, but for a book that looks at other words, the nature of innovation was not the political implications of technology, the given, but actively shaped by people who had treatment of technological innovation itself an interest in hiring children instead of skilled feels remarkably apolitical. This holds espe- adults because children were both cheaper cially for the chapters discussing the industrial and easier to control. Hence, the nature of revolution and developments since then. For ‘technological progress’ is part of a struggle Justin Nogarede, Frey, technology is either labour enhancing or for power. Is it a coincidence, then, that the Digital Policy Adviser at FEPS

73 - LIBRARY BOOK REVIEWS

The pandemic and capitalism Will we learn from this crisis that our present precarity capitalism must be brought to an end? by James K. Galbraith

Albena Azmanova "Capitalism on Edge: How Fighting Precarity Can Achieve Radical Change Without Crisis or Utopia"

Columbia University Press, 2020

nce in a long while a new book comes welfare state capitalism, featuring regula- and combined free trade with privatisation, Oalong that challenges prevailing patterns tion, social insurance, strong trade unions, and deregulation, and fiscal austerity, relieved of progressive social and economic thought in large, stable, national industrial corporations. by bouts of tax-cutting and easy money, all a way that is both deep and far-reaching, yet contributing to a vast rise in inequalities. still evidently originating from within the critical Welfare state capitalism succeeded for a gener- This system was justified by the necessity left, so as – potentially – to prove persuasive ation; it tamed some of the tendencies toward of "competitiveness" and defended with to thoughtful and open-minded progressives. crisis in capitalism while remaining sufficiently Herbert Spencer’s old Social Darwinist clar- Capitalism on Edge is such a book. dynamic – and allowing sufficient personal ion call: "There is no alternative." Neoliberal liberty – to outlast the socialist and communist policies did not dismantle the welfare state all The author, Albena Azmanova, a reader of challenges from the revolutionary East. But it at once – many parts of it lasted a long time political and social thought at the University eventually fell prey to discontents, from both and some are still with us – but they under- of Kent in the UK, develops a synoptic treat- radicals and reactionaries. Azmanova observes cut the accepted legitimacy of those policies ment of the modern history of capitalism, that the successes of welfare state capitalism and institutions, and spawned an intellectual which resolves into roughly four phases. The blurred the convention lines of class conflict in reaction that moved onwards, not backwards, first, calledliberal or laissez-faire capitalism, the West, through the emergence of a significant largely accepting the free-market critique of ran from the mid-19th century to the 1930s and professional class and the diffusion of nominal Roosevelt and Keynes and embracing the core featured the clearing out of the remaining legal ownership of capital assets, giving a large share tenets of the neoliberal view. vestiges of feudal hierarchy – such as slavery of the population the perception of an ownership and the legal subordination of women – and in stake in the system. The security and community Neoliberalism received a shock at the dawn of some cases also associated protections such of the welfare state fostered the youth rebellions our century with the bursting of the dot-com as guilds, so that free labour and free capital of the baby boomers – and these in turn brought bubble and then 9-11, and an even bigger one could make their way through free markets. on the reaction. Rising inequality imposes social with the financial crisis of 2007-2009. All this This system collapsed in the 1930s after the discipline on the insecure. gave rise to a backlash from the left, at least Great Depression. It was replaced, in Western in Western countries. This movement is char- democracies – in the United States during The next phase was neoliberalism, which acterised by the trope of exclusion of certain the New Deal and in Europe after 1945 – by took hold after the stagflation of the 1970s groups from the general prosperity, inflected

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by a group consciousness and a politics of Meanwhile, Azmanova argues that capitalism identity. The left in short became neoliberal itself has moved on, leaving its neoliberal phase in its core commitments. It no longer sought behind and the global left-neoliberal critique fundamental reform of the capitalist system, and prescriptions largely dangling in mid-air. still less its overthrow. Instead the "progres- sive" view – as personified across the globe Precarity capitalism, Azmanova argues, is by luminaries ranging from Paul Krugman to our fourth phase and has become the new Thomas Piketty – is to seek redistribution face of the old system. Its main trait is not within the system, an economics combining growth or competitiveness but instability, and growth with opportunity. Opportunities are to its dominant form of inequality is not of income be delivered by education, affirmative action, or wealth but of security and self-confidence. anti-discrimination enforcement, and similar The crucial divide within economies dominated measures, plus a reorientation of the tax bur- by precarity is between a minority ensconced den toward the ultra-wealthy in the name of in a diminishing set of safe career paths or social justice. Social entrepreneurship and  The crucial divide within sufficient wealth not to bother worrying, and self-help are other aspects of this worldview. economies dominated a majority living in persistent anxiety over the by precarity is between a costs of health, housing, education, the quality These measures aim to make neoliberal minority ensconced in a of public services and other formerly ordinary austerity – an ideology lent protective cover diminishing set of safe career attributes of middle-class life. And to this, one by calls for "fiscal responsibility" – more bal- paths or sufficient wealth might add the overarching fear of ecological anced and more fair, and to curtail the most limits, manifested mainly as climate change. not to bother worrying about egregious consequences of capitalism, includ- that, and a majority living ing environmental injustice, extreme poverty, For a long time, left critics, including this and differential life expectancy, so that they in persistent anxiety over reviewer, held to a view that crises would do not fall so heavily on people of colour or the costs of health, housing, eventually breed a new politics, restoring ele- other marginalised groups. But those in the education, the quality of ments of decency and authentic democracy to neoliberal left do not dispute the system itself. public services and other the social structures of the West. First Naomi Nor do they question its success at delivering formerly ordinary attributes Klein and now Azmanova have demolished this the goods in the form of material sufficiency of middle-class life. notion; Klein by showing in her 2007 book The and of incessant, seductive novelty in the Shock Doctrine how crises are manipulated – experiences of consumption. Acceptable pol- and even fostered – to generate neoliberal itics therefore resolves into a tussle between outcomes, and Azmanova by pointing out the Hillary Clinton 2016 and Elizabeth Warren consistent resilience of post-crisis capitalism. 2020, between "America is already great" This has been at no time so evident as after and calls for wealth taxes and anti-trust regu- the Great Financial Crisis of 2007-2009, which lations, to make capitalism work (somewhat) appeared, for a time, to be on the verge of better than it actually does. To people with bringing down the whole system. We face, this perspective, Bernie Sanders and Jeremy Azmanova says, not a crisis of capitalism but Corbyn were beyond the pale. a "crisis of the crisis of capitalism".

75 - LIBRARY BOOK REVIEWS

The shifting political paradigm that Azmanova social insurance, and countervailing power that which does not exist in Korea or Japan or describes is becoming more and more appar- emerges from this book. And that is that the Germany. What these societies share is that ent. Donald Trump spotted it in 2016. And he failure of the neoliberal model to deliver on its over four neoliberal decades they maintained won the presidency by placing himself, if only promises of growth through competitiveness their large industrial corporations as going con- rhetorically, at the head of a revolt of the inse- and "tough love" for ordinary workers and the cerns in line with national strategies, along with cure, of people whose world no longer offered poor is not due solely to the fact that it handed their productive base and social organisation; stable middle-class employment in regions Anglo-Saxon capitalism over to predators, they did not give everything over to the market. enriched by the taxes paid by industrial cor- thugs, and fraudsters posing as financiers. It And over those decades, put to the test against porations and their workers. To his followers, is also due to actual existing competition from the neoliberal corporation dominated by Wall Trump offered a return to national capitalism better-performing systems. We must consider Street, there is no doubt which side won out. under national control – an illusion, but one the fact that Anglo-Saxon money-manager with resonance and bite. One could also see capitalism is not the only economic system out In the crisis now upon us, the issue before the the Azmanova impulse in the youth movement there in the world today. There are alternatives. Anglo-American side is whether the reality of that swept Bernie Sanders forward in 2016 on a And not only that: experience shows us that our situation will now sink in. Will we recognise, platform of a $15 minimum wage, Medicare for the alternatives are superior, both in deliver- in time, the need to mobilise all our resources, All, tuition-free public college, and the Green ing competitiveness and in improving living to socialise our health system and keep the New Deal – a quartet uniquely effective in standards and reducing extreme poverty, as supply chains open until the virus can be con- speaking to the insecurities of the youngest well as in retaining the capacity to respond to tained? Will we realise that when this is done, voting cohort. One can see here why Sanders an extreme crisis, coming, for instance, from life will not be what it was before, and that a could not break through in 2020; his approach the biosphere. vast reorganisation of economy and society will could not reach the older set who have spent be necessary? Or will the neoliberal ideologues their lives imbibing the neoliberal tropes. A mixed economy featuring corporations with in control succeed in squelching that debate – long-time horizons, stable relationships with their which they are trying to do, at this writing, by Azmanova traces the defect of modern capital- bankers and countervailing power was never focusing on bailouts and stimulus in the belief ism to its root: the predominance of the quest wholly dismantled in Germany, in Scandinavia that somehow the bubbles now bursting can for competitive profit, which has of course been or Japan, and it took root in Korea, where it sur- be re-inflated in a few months? Will we remain the leading feature of the system, its life force, vived several severe financial shocks that would mired in illusions of growth, with or without since its beginning 500 years ago. have demolished it in Europe or North America. equity and inclusion? Or will we now finally These serve as the prime examples of success- displace those illusions, with a new wave that What is needed is a reversal of a canonical ful resistance within the West to untrammelled understands the nature of precarity capitalism late-20th century error: conflating economic exercise of financial power. and what must be done, as Albena Azmanova success with shareholder value, devil take has so ably set forth in Capitalism on Edge. the hindmost. That prescription was avidly And there is China. The Chinese state, which advanced by economists in the 1970s and prizes above all autonomy, predictability, and 1980s, such as Milton Friedman and Michael social stability, and if not always firm control Jensen, and avidly promoted thereafter by of its banking sector, has the willingness to This is a shortened version of a review published earlier in Democracy Journal. tycoons and CEOs. Its fatal flaw was time-in- override that sector’s autonomy whenever consistency: what maximises the stock price necessary. China is no democracy, and mod- on any given day bears no relation to the ern China was built on many epic disasters, requirements of maintaining the firm, nor to including the famine and Cultural Revolution, the production of economic value over time. none of which appeal as models. But that it is It is, rather, what fosters predatory finance and a functioning society capable of mobilising to executive larceny – the Western equivalents of meet vast challenges has never been clearer nomenklatura privatisation, which turned much than in recent days. And one can say the same of Eastern Europe over to oligarchs after auto- of South Korea, and perhaps of Japan, while in cratic socialism collapsed. Europe Germany is, so far, the best prepared to handle the coronavirus crisis. There is perhaps one thing that Trump and his James Kenneth Galbraith, professor at the School of cohort have grasped that would usefully com- What is the source of this resilience? It is not, Public Affairs and at the Department of Government, plement the agenda of solidarity, sustainability, of course the leadership of a Communist Party, University of Texas (Austin)

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