Showing posts with label markets. Show all posts
Showing posts with label markets. Show all posts

Sunday, 2 September 2012

Politicians!!!!!!!!!!!!!!!!!!!!***£%$£££**!!!

"Politicians" has become a dirty word. However, no state that got along with an element of free participation by at least some of its citizens has ever donw without politicians. Even in the direct democracy of Athens there were political leaders.

So those who rubbish politicians as a class must stand for one of these two things:

*EITHER some kind of dictatorship

*OR much more honest and better-behaved politicians.

I do suspect that some of the anti-politician and anti-politics culture is whipped up by right-wing media because the more people distrust politics and politicians, the more they will be happy for decisions that used to be taken openly and democratically through the political process to be left to corporations and (which is not quite the same thing) to the market. I've posted on the limitations of the market before, but just remember two things about the market: it doesn't think far ahead; and if you have a thousand times someone else's spending power, for the market, you have a thousand times the power. Forget one person one vote.

However, even the most ideologically pure free-marketeers admit some room for collective, democratic government, for which you still need politicians. I think hardly anyone in stable democracies wants dictatorship. Still politicians, then, but maybe better ones?

That's a perfectly reasonable aim and the U.K. parliamentary expenses scandal gives it force. But that scandal related purely to NATIONAL politicians (control over local expenditure is much tighter) and yet it's tarred local councillors with the same brush. As for the sort of honesty that means sincerity rather than decent behaviour over money, people say they want that kind of honesty in politicians yet those who display it are often pilloried for putting their feet in it.

It's also worth remembering that opinion surveys over nearly fifty years have shown that U.K. voters have a very low opinion of M.P.s and councillors in general, yet often like their own local representatives. In other words, there is an anti-politician assumption which is unaffected by positive experience of your local person.

There's a widespread assumption that local elected politicians are paid careerists - yet if you look at the allowances U.K. councillors get, they vary between about £1,000 a year and £10,000 (excepting what a few people like a leader of the council get for what's maybe half a full-time job), not big money especially if you consider that being an active councillor will involve expenses (driving around a lot, for example, and very likely some of your election expenses) and many hours of work, not only meetings but taking up problems for people, talking with people, researchiung issues and so on.

Someone posted on a local paper discussion board that their council would be better if the councillors were all independents instead of "political careerists". Well, look at the typical local council and you'll find many of the councillors are retired people who've had careers and now want to do something for their area and promote things they believe in. Others have good non-political careers they may well be damaging through the spare time and mental energy they take on council business. Out of 50 councillors you might find about eight or ten who had national political ambitions and maybe two of those would be elected to parliament, not necessarily for more than a few years.

As for independents, there are some good ones, but here are some of the minuses:

- they're all well-off. Political parties can pay the election expenses of relatively poor candidates, but independents pay their own, unless of course they have rich friends who may expect favours in return.

- you generally have very little idea of what they stand for or how they'll vote on key issues: there's no manifesto, for a start.

- if they do express a commitment, there's no mechanism to stop them going off in a completely different direction, whereas a party candidate elected on a manifesto who completely ignored it would probably be in trouble.

- very often they're party loyalists in disguise, so you get the party rule without the honesty of knowing you're voting for the Conservatives (say) to run the council. In a recent town council election not far from me, seven people were standing as independents yet were endorsed en bloc by the Conservative district and county councillors and behaved like a party slate.

Sometimes it seems the anti-politician mood is so strong that people forget that the vast majority of local political activists are volunteers who believe in something.

Wednesday, 20 June 2012

Can representatives think? (2)

Back to the subject of what should direct the votes of MPs and other elected representatives. In the first post I argued that an election manifesto should be a serious commitment, but that there were very good reasons why the commitment could not be absolute. I also pointed out that while people criticised MPs for not doing what their electorate wanted, the same people valued decisiveness and knowing what they wanted in prospective governments and leaders.

The late 18th century politician, political philosopher and reformer Edmund Burke took a stand on MP's independence from direction by their voters, arguing that he owed his voters his considered opinion, not his vote. They turned him out at the next election, but at that time, and into the late 20th century, many voters would have accepted that while on certain high-profile issues, they themselves could make a good judgement, on most they didn't have the information or wisdom and MPs might - so they would vote for someone who seemed to share their values and approach rather than seeking precise agreement on policies. I remember a more recent politician, the Liberal MP John Pardoe, answering a question on the popularity of capital punishment and his own opposition to it by saying that his voters knew they weren't going to get that policy from him, so if they voted for him, it was on other grounds.

Increasingly, though, people have access to masses of information. They're also used to being able to buy what they want on Amazon or in the supermarket and it's easy for this to determine how they see politics - not just a choice between Labour, Liberal Democrat or Conservative, or between four or five individuals standing for office, but shopping from a detailed and specific menu. The availability of information is empowering, but the shopping analogy is dangerous when applied to politics, which concerns collective decisions on common issues (so you can't always get what you want) and where issues are interconnected in ways that may not be obvious.

In Burke's time, though, party ties in Britain were very weak, especially in the Whig Party, which was a very loose alliance of factions with no central control. A thoughtful MP like Burke really could follow his conscience or his judgement unless the personal interests of his patron were endangered - and richer men than Burke had not even that limit to consider.

That is not a credible way of running a modern government: it doesn't work anywhere. Back in days when the British Liberal Party had no local councillors in most areas, the idea was popular amongst those Liberals that councillors should be free of party discipline and follow their individual judgements all the time. This was never an idea that survived long once they had a group of elected councillors, because a group that behaved with no coherence would be torn apart. A group actually running a local authority needs to behave with some consistency so managers and others can make plans and we don't end up with popular decisions in one field of work that make nonsense of other decisions in a related field. An elected group can debate things and make a collective decision, taking into account what it knows of wider opinion, but once that group decision is made, those who lost the vote should vote with their colleagues except in rare and limited circumstances - ot otherwise there's chaos.

Most British people view a general election mainly as an exercise in electing a government and do expect the government to have some direction and coherence - which requires some party discipline, though the discipline can either be top-down (do what the leader says) or bottom-up (that's the decision the conference or the group of MPs reached). However, MPs who vote with party discipline against strong local views on something are often punished. If they weren't, people would certainly feel disempowered and ignored. So is Burke still right or not?

I don't think there's a simple answer. Most Liberal Democrat local council groups allow some flexibility for councillors pressing local issues where arguments for the priority to be given to road safety measures on one road, for example, aren't strategic issues. It gets more difficult when a ruling group has taken hard decisons on a schools reorganisation which must involve some schools closing, but everywhere a school is threatened, the closure is unpopular. If every closure were voted on individually with everyone voting freely, there would be no reorganisation with disastrous effects if school rolls were falling. So it may be necessary for a representative to make the case of his voters, do what (s)he can behind the scenes, but accept the final decision.

There is also the competing factor of issues of conscience. I find these hard to define, since to me all political issues are moral issues and all are practical issues, but it seems reasonable to accept there will be a few issues where individuals have deeply-felt beliefs which cut across party boundaries and where it's unreasonable to expect them to be bound by party discipline. However, that may well lead them into votes which go against what most of their voters want!

To sum up: I think people want politicians who:
KNOW WHAT THEY WANT AS A GROUP, ARE FIRM AND HAVE CONSISTENT DIRECTION
NOT ONLY LISTEN TO THEIR VOTERS, BUT OBEY THEM
THINK FOR THEMSELVES AND FOLLOW THEIR CONSCIENCES.

Trouble is, you can't have more than one of those - unless you can go along with a messy compromise of bits of each.

Wednesday, 13 June 2012

Can representatives think? (1)

Many though the faults of MPs and other elected representatives are, I'm not going to join in the easy flow of contempt for them. Would those who have nothing but contempt for them and for politics in general please propose their alternative way of resolving common issues? There are other ways, of course - dictatorship, for example, or a marketisation of everything that means if A is fifty times richer than B, he's fifty times more powerful.


No, I want to discuss what degree of independence MPs and other representatives should have - and if their independence is limited, by what.


I was moved to this by learning that polls show the British electorate think (1), that MPs should always vote in keeping with the majority view of the people (not sure if this means in the whole country - probably in their constituency only) and (2) that if an MP is elected as a member of a party on a manifesto, he or she should stick to the manifesto commitments 100%.


These two ideas are clearly contradictory. A manifesto is bound to contain some ideas which don't command majority support. A party that only put forward commitments it was sure would enjoy such support would be cowardly and likely to be blown here and there by shifts in public opinion. Actually, there's evidence that English people at least, whatever they say to pollsters, prefer would-be Prime Ministers and governments that know their own mind to ones that seem not to, even if the former stand for some things those voters don't like. Mrs Thatcher benefited from this and her Tory successors lost support through appearing as reactive populists. A national manifesto commitment may command majority support in the country as a whole, but not in our MP's constituency.


Even if they weren't contradictory, I'd suggest the ideas are misconceived. A party in opposition can put forward policies that appear to be practical according to the best analysis and information available to them at the time. Coming into government, they can find, for example, that confidential information paints a different picture, or the situation can have changed drastically, for example if an apparently healthy economic situation has turned into disaster; or civil servants or other advisors or voluntary organisations can put forward compelling arguments why, to achieve their goals, these are the wrong policies. All that without the possibility of facing a need for coalition with partners whose aims are largely different, or that the promises weren't entirely sincere in the first place!


Insincere promises get politics and politicians a bad name. But there are honest reasons why a manifesto commitment cannot or should not always be implemented, though these situations should be relatively rare. So what is a "pledge", like the U.K. Liberal Democrats' pledge on student funding? Since anyone who knows something about practical politics knows a manifesto commitment should represent a sincere intention but cannot be 100% solid, if a small minority of manifesto commitments are picked out to be pledges, I can only imagine this is suposed to mean these promises alone are sacrosanct - so to make such a commitment knowing there is perhaps a 10% chance it may have to be broken is a bad mistake. To pursue the example, the Liberal Democrats, my party, knew it was very unlikely they would be able to govern alone or even as the biggest party short of a majority. What actually happened, that circumstances meant there was very little alternative to a coalition, could be no great surprise. For me, the dropping of that policy as part of the give and take of compromise in a coalition was understandable, but it raises the question of whether a "pledge" is just overblown language for an intention.

What about MPs voting with their consciences, or with a collective party decision, and against the wishes of their electorate? I'll look at that in the follow-up post, probably after I return to the tale of Odanglesex County Council and the Away Day.



Thursday, 19 April 2012

What is a Liberal - to me?

When I last posted I described how the term "Liberal" has come to mean different things in different places, its roots, and how it evolved in Britain. I ended by describing the party I joined at the end of 1966 as I saw it then.

So if I told someone I was a Liberal and they didn't understand, roughly what would I say?

The constitution of the Liberal Party (before merger with the Social Democratic Party) said Liberals "put freedom first". All other political creeds have at best a conditional adherence to freedom. Nationalism, for example, can be advanced along with freedom or at its expense. Many early social democrats in the Labour movement supported free expression and democracy in Britain because they were the established culture and convenient channels for creating a fairer, more rational and better planned society: elsewhere, as in the Soviet Union, they saw these things as disposable if the end result was their kind of society. But "freedom" means almost as varied things to different people as "Liberal" does.

At its most basic it indicates an absence of control. That can't be absolute, or society would disintegrate, but if I am prevented by law from drinking alcohol, criticising the founder of the state or painting my house in vivid, clashing colours, those are limitations of my freedom. Some limitations are justified to protect the interests of other people or life forms, such as limitations on late night noise or on killing rare animals. But it isn't only the law that stops me doing things. If I'm blind and paraplegic, for example, a mere absence of help will profoundly limit what I can do. In a profoundly poor, disadvantaged community, I may not need a legal ban to tell me I won't be a judge or conduct an orchestra or sail in the Olympics. This leads to a concept of freedom as maximising people's potential. The term "potential" is loaded with hidden value-judgements (what if my potential is to be a brilliant serial killer?), However, I support the idea that maximising people's opportunities is an aspect of freedom and Liberalism. Where I disagree with the "economic Liberals" who have gained leading positions in the British Liberal Party in recent years is that I see opportunities closed off by poverty, by hatred and discrimination and by the actions of big business more than by the legal restrictions imposed by a democratic state.

For Liberals, freedom is freedom of the individual. The freedom of a nation or people from a wider state - of Scotland from Britain, Corsica from France or the Tamils of Sri Lanka from Sri Lanka - should be valued if it contributes to individual freedom, but not otherwise. But stress on individual freedom can lead to an atomistic view of society, again seen among "economic liberals" and Thatcherites, viewing society as separate individuals pursuing individual goals and impeded by government. In fact, we achieve freedom and awareness collectively through relationships. Political freedom is protected by a web of free organisations, universities, trade unions, political parties, residents' associations, pressure groups and charities, churches and other religious groups. When we join and get involved in something like this we are not buying something in the market - we're sharing in common action for something we judge to be valuable.

Promoting such activity is for me essential to Liberalism. We are more free if we can influence our human environment (laws, institutions, roads, buildings, education, social care) and do so by such free association. A passive society getting on with its economic activity and voting every few years for a centralised government might satisfy a social democrat (no intention to refer to the SDP here) because it might be relatively fair and benign economically, but it should not satisfy a Liberal. Hence Liberal support for all kinds of devolution of power aimed at bringing power nearer to people.

The more unequal society is, the more freedom is restricted because masses of people have little choice and little influence on what is done in their name. An academic Liberal when I was a student argued that Liberals and (democratic) Socialists both valued freedom and equality, but the Liberals put freedom first when the two conflicted. I'd add, or amend, that Liberals and Socialists both want equality, but Socialists are more interested in equality of wealth and Liberals in equality of power. Centralised command socialism tries to achieve a degree of equality of wealth and creates profound inequalities of power. Liberals pursue political reforms and local activism to redistribute power, but in an extremely economically unequal society, the rich will always use the power much more effectively than the poor.

There is one last aspect of modern Liberalism very important to me. When I joined the party, raising environmental issues (as I did) made you seem a bit odd in any political party. The business-first economic Liberal parties of some European states are not greatly interested in green issues, but the Liberal Democrats in Britain have pursued them harder than the other mainstream parties (unless you're Welsh, as Plaid Cymru (Welsh nationalists) seems to me to have much better environmental credentials than the SNP (Scottish nationalists). It isn't very obvious to me how this dovetails with the rest of Liberalism, but I suggest seeing the rest of creation as having value and rights independent of human interests (a "deep green" position) is a logical extension of Liberal internationalism and opposition to narrow hatreds and fears such as in racism.

Now someone might point out the Liberal Democrats of Britain are currently in a Conservative-led coalition which is doing some not very Liberal things by the criteria I've suggested. True - and it's doing some Liberal things (stopping I.D. cards, abolishing the default retirement age, tax reductions targeted at the lowest-paid). But the experience of power and of coalition have led to soul and mind searching by Liberals, revisiting questions like "What is a Liberal?". I think that's healthy - and I'll never accept the answer is just "Someone wanting a weak state and an absence of government restriction on civil liberties plus more freedom for business and for individuals to buy what they want in the market".

I'm a Social Liberal. I want a Liberal society.

Tuesday, 6 December 2011

The Market and the Ballot (2)

As I suggested two days ago, the Market is great for reflecting individual choice in the present. It can be distorted by advertising campaigns - people buying a particular car or drink or footwear because they've bought the message that it'll make them young and popular and sexy and trendy, perhaps, when in fact it can't deliver most of these things - but customer pressures do quite often go against what the producers or retailers might like.

The question of what should be left to individual choice can usually be settled through John Stuart Mill's test. Does your choice hurt someone else (or, we might now add, for example drive a species extinct)? Some things cannot be settled by a series of separate individual choices: in my post on the dangers of being customer-centred, I gave an example of a controversy over proposals to cut down some trees in a public park. It is not possible for all the different users to have what they want, so a much-despised thing called politics intervenes to make a collective decision. As I suggested in that post, a danger of a zealous market approach to public services and decisions is that it undermines the understanding of community decision-making and co-operation and creates the expectation that individuals should always be able to get what they want; and when they don't, they turn against politics and democracy. Our species developed as a social animal making collective decisions: it's an essential part of being human.

Where an individual choice can be made without harming others though, as in a frail old person deciding to spend on making her garden accessible rather than on improvements within the house, it's of course far better than professionals deciding for her.

I am not usually one for conspiracy theories (they have abounded through history and very few of the alleged conspiracies have gained any support from evidence subsequently coming to light), I do suspect that behind the populist campaigns of the Murdoch press, for example, is a wish to denigrate public service, politics and democracy, not to bring in dictatorships, but to make people happy to see collective democratic decision-making replaced wherever possible by the market.

So would there be a problem? In some areas, yes - as if we can't understand the processes of debate and compromise that lead to a decision on that public park or library, we may end up with no public parks or libraries, only charged-for services far more accessible to the rich than the poor.

A few years back, two radical right Conservative writers embarked on a  series of articles on land and housing policy. They actually came up with some good points, such as that German local authorities' greater powers to raise local income from business led to more balanced decisions on building proposals; but in advocating the abolition of land planning, they proposed, in some detail, that government should not intervene in issues of wildlife habitat protection. If enough people wanted some marshes preserved for wildlife, they said, they could join the RSPB or whatever, pay subscriptions and donate, and their economic power would be measured against that of the developer.  Now this proposal was mad for several reasons, but I want to concentrate on one. Whereas in democracy everyone has one vote, to influence public decisions, in a free market power equates to spending power. A million people of modest means could support an organisation trying to establish or preserve a nature reserve and be "outvoted" by one billionaire or by a corporation made rich by consumers who would never have been consulted on the nature reserve and might be horrified at its destruction. The extreme pro-market approach is simply grossly inegalitarian: it assumes that the more money you have, the more power you should have in a straightforward relation: a hundred times the money,  a hundred times the power.

Sunday, 4 December 2011

The Market and the Ballot: (1)

Over the last thirty years or so, in Britain and many other countries, the areas of life controlled by market processes have expanded at the expense of those controlled by government. In many cases, of course, the governments were not democratic - East European Communist regimes or African or Latin American military dictatorships, and the replacement of these regimes has been accompanied by marketisation of many areas of life, especially in Eastern Europe.

I want to concentrate on the existing democracies and to point out some of the dangers and losses along with the undoubted benefits of the triumph of the market.

Anyone who saw the old Soviet regime with open eyes, for example, would know how an absence of market mechanisms can distort and deaden so many areas of life. The shops do not stock what people want and they have no great incentive to attract customers or to sell. The customer does not matter - only what the state says the customer should want. Even in mixed-economy, democratic Finland in the 1970s the effects of the combination of a state monopoly on the sale of alcohol with planning policies that deliberately held down the number of bars and other alcohol consumption outlets below demand, were to disadvantage small producers, reduce choice and the quality of advice and leave bars with so much demand that they could afford to offer a bad service and be rude to customers because they would still make a profit.

The market is very good at reflecting customer choice where customers or families can make individual choices and where they are well-enough-informed to do so. This has been extended into some areas of public service, for example the "personalisation" of social care in the UK. In principle, people who need help such as frail old people, instead of being offered types of help they may not want, get a budget and can spend it as they like. There are risks, particularly with vulnerable people lacking good advice, but basically this is a liberal and empowering measure. Even where services are hard to break down to an individual choice - it would be impossibly inefficient for each household to make a free choice of their refuse collector - an element of competition can be healthy, with local authority providers competing with the private sector, social enterprises and one another. The benefit here is not an extension of personal choice, but a likelihood of better value for money.

In some areas, though, the market does not work well. Consumers may not be well-informed enough to make a good choice. For example, energy provision in the UK is theoretically a free market with competing providers, but the deals are so complicated and so often look good but on exhaustive study are bad, and the companies make it so hard to swap, that there is virtually no real competition and the vast majority of people are on deals substantially worse than they could get. This may well be through collusion, and in theory at least, action by a regulator could force changes which made the competition real. But the point is worth noting - that an unregulated market does not necessarily work for the best for consumers. This may be because take-overs and aggressive business tactics result in monopoly, which the state can and often does ban. But monopoly does not necessarily mean providers understand less about customer desires than in a competitive market. Let's compare rail travel or policing with credit cards or car insurance.

Policing is a state monopoly (though I could see that changing, with state-given powers for private security forces). The police do not suffer economic pain through loss of customers if their performance is poor or their actions unpopular. But people who are dissatisfied often complain - to the police, to the media, to their elected representatives. As the police know they need the support of the community to be effective, such pressures have an impact. and the police generally know lots about what people want of them. Some rail travellers have choice if a car journey would be a credible alternative, or a flight, or a bus journey: but in the UK, many commuters have no real choice. The car journey is too stressful, too comparatively unsafe, too difficult when it comes to parking, to be attractive, the buses are too slow and the airports too far from home or place of work. So people who feel aggrieved by changes in the timetable or by cancelled services complain or even campaign. Consequently, if the rail companies don't know what people want, it's a deliberate act.

By contrast, what do you do if you find a better deal on your car insurance (a genuinely competitive market), or you're unhappy about some inefficiency at your credit card provider? You switch. There is no point in telling the company you're leaving what turned you off. You just switch. Companies may try to test customer preference through surveys, but very few people respond, and the findings are unlikely to reveal, for example, that while a change in a  service is popular with 65% of customers, 20% disliked it enough to leave - so the company will be reassured and will not consider offering two options to satisfy both groups.

Where services are provided on by local authorities, there is another thing you can do. Your experience of the service can influence your vote. Many other things influence voting behaviour, of course, but it's a safe bet that a new administration that makes services better stands a better chance of re-election than one that doesn't.

Markets also famously think short. Depletion of non-renewable resources, for example, does not have much impact on the markets until the crunch is very near. Where confidence is the issue, as with loans, ridiculously excessive confidence can drive towards a sudden collapse as in 1929 and 2008 - and then lack of confidence can be just as illogical. Markets also think narrow. If a company can save modest amounts of money by making 30% of its staff redundant, and the consequent loss of money through lost business is less than the gain through reducing the wage and energy bills, it will almost certainly make the change. The state, and through it, all taxpayers, pick up the bill in increased benefits take-up, health problems and so on. It is possible for government to disincentivise such choices, but business will use its influence effectively.

When I return to this, I'll look at situations where collective democratic choice implemented by bureaucracies is directly in competition with an atomised market approach and at how marketisation sits with the cocept of community.

Was that heavy? OK - to my post on the winter ale festival, I add high praise of Shalford's Levelly Black and Allgates' Caskablanca.

And I leave you with another learned presentation on words. Cats are kept in a cattery; bats in a battery; apes in an apiary; nurses in a nursery; and alligators in an allegory.