The Price of Inequality

Joseph Stiglitz is one of the most respected economists of our times and a person who has also held positions of significant influence, including chief economist of the World Bank and chairman of the Council of Economic Advisors for the US President (Clinton). In 2012 he authored "The Price of Inequality: How Today's Divided Society Endangers Our Future," which preceded other important works on the topic, such as the English version of Piketty's Capital (2014) and Milanovic's "Global Inequality" (2016) and Reich's related book "Saving Capitalism" (2015). Stiglitz was not the first to raise the issue of inequality, but he did raise the level of importance and changed the nature of the debate.

This book is about American inequality. The problem, as many others have stated, is not the market but the rules (not) regulating the market and policies that ensure the benefit is not only distributed but invested to enable future growth: "the inequality is cause and consequence of the failure of the political system, and its contributes to the instability of our economic system, which in turn contributes to increased inequality – a vicious downward spiral into which we have descended, and from which we can only emerge through concerted policies" (p. xi). The contribution made by Stiglitz in this book is to challenge the myths about inequality, and in particular to argue how inequality is bad for everyone: "we are paying a high price for our inequality – an economic system that is less stable and less efficient, with less growth, and a democracy that has been put into peril. But even more is at stake: as our economic system is seen to fail for most citizens, and as our political system seems to be captured by moneyed interests, confidence in our democracy and in our market economic will erode along with our global influence" (p. xi).

The book is replete with examples about how the powerful use their power to create and change the "rules of the game" in their favour (see p. 201, for example). The answers, or way forward proposed by Stiglitz, compose many recommendations, beyond summary here. They include making the tax system fairer, raising taxes on the top, reducing military spending, removing subsidies for major corporations, eliminating loopholes, ensuring resources are paid for appropriately, and introducing and enforcing regulations (particularly on the financial sector). He also calls for greater investment in education, technology, infrastructure, and social security. Doing so "would simultaneously increase economic efficiency, fairness, and opportunity" (p. 268). More fundamentality, Stiglitz argues the very core of America and American values are at stake "America is no longer the land of opportunity" (p. 265).

Stiglitz frames inequality as the issue of our times. Although, inequality is not simply about inequality. The debates "rest on broader ideas about human rights, human nature, and the meaning of democracy and equality" (p. 155). It is often these deeper, sometimes value-based, positions that result in policies that create inequality. "There is a real battlefield of ideas. But it does not, for the most part, involve a battle of ideas as academics would understand it, where evidence and theory on both sides are carefully weighed. It is a battlefield or "persuasions," of "framing," of attempts not necessarily to get to the truth of the matter but to understand better how ordinary citizens' perceptions are formed and to influence those perceptions" (p. 162-163).

He concludes: "Maintaining the kind of society and the kind of government that serve all people – consistent with the principles of justice, fair play, and opportunity – doesn't happen by itself. Somebody has to look after it. Otherwise our government and our institutions get captured by special interests. At the very least, we need countervailing powers" (p. 281). A call to action.

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From Dictatorship to Democracy

One of the world's leading thinkers and activists for advancing democratic governance through non-violent action is Gene Sharp. He founded the Albert Einstein Institute and is a multiple-time nominee for the Nobel Peace Prize, as well as recipient of many other notable awards. He has authored many books, but one of his most influential and most widely translated books, as well as one of the most widely referred to books by non-violent activists, is "From Dictatorship to Democracy: A Conceptual Framework for Liberation" (1993, original). Famously, the book includes a list of 198 methods of non-violent action.

Sharp writes in the preface to the book that "the focus of this essay [it was originally written as a series for activists] is on the generic problem of how to destroy a dictatorship and to prevent the rise of a new one" (p. xix). At the outset, the author makes clear that in most instances of dictatorship, violent action will not work: "Whatever the merits of the violent option, however, one point is clear. By placing confidence in violent means, one has chosen the very type of struggle with which the oppressors nearly always have superiority" (p. 6). The alternative advocated by Sharp is non-violent action.

How? Quite succinctly, the author summarizes (p. 12): "When one wants to bring down a dictatorship most effectively and with the least cost then one has four immediate tasks:

  • One must strengthen the oppressed population themselves in their determination, self-confidence, and resistance skills;
  • One must strengthen the independent social groups and institutions of the oppressed people;
  • One must create a powerful internal resistance force;
  • One must develop a wise grand strategic plan for liberation and implement it skillfully."

Navigating the actions and reactions of a dictatorial government and its supporters requires close monitoring and analysis. Sharp does not delve into the academics of the matter, and summarizes the key factors relating to success as: "(1) the relative desire of the populace to impose limits on the government's power; (2) the relative strength of the subjects' independent organizations and institutions to withdraw collectively the sources of power; and (3) the population's relative ability to withhold their consent and assistance" (p. 33).

The book is not all positivity and encouragement. There are strong warnings about the costs as well as the responsibilities involved. For example, even "when the oppressive system was brought down, lack of planning on how to handle the transition to a democratic system has contributed to the emergence of a new dictatorship" (p. 61). In other words, all the action and all the costs can re-create the system that was fought against if long term, strategic planning is not a part of the struggle. Furthermore, Sharp emphasizes not just the planning of power, but the re-distribution of it: "The effect of nonviolent struggle is not only to weaken and remove dictators but also to empower the oppressed. This technique enables people who formerly felt themselves to be only pawns or victims to wield power directly in order to gain by their own efforts greater freedom and justice… One important long-term beneficial consequence of the use of nonviolent struggle for establishing democratic government is that the society will be more capable of dealing with continuing and future problems… The population experienced in the use of political defiance is less likely to be vulnerable to future dictatorships." (p. 121-122).
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Capitalism vs The Climate

Naomi Klien's "This Changes Everything: Capitalism vs The Climate" (2014) is not a case for how climate change is real or important to consider, it is a call to action. From a research perspective, I was not overly impressed with the book. However, a few chapters into my reading I realized I had approached the book incorrectly. This is not a research book by a researcher; Naomi is an activist and this book is calling for action. It is a book about how the author thinks the public can change the ways things work. It is not the pragmatic, middle of the road argument. It is to "move the ideological pole far away from the stifling market fundamentalism that has become the greatest enemy to planetary health" (p. 26).

The main reason why action has not yet occurred, despite the consensus about climate change, is "those things fundamentally conflict with deregulated capitalism, the reigning ideology for the entire period we have been struggling to find a way out of this crisis" (p. 18). The solution, Klien argues, "is not simply that we need to spend a lot of money and change a lot of policies; it's that we need to think differently, radically differently, for those changes to be remotely possible. Right now the triumph of market logic, with its ethos of domination and fierce competition, is paralyzing almost all serious effort to respond to climate change" (p. 23). While the author makes a clear argument for the challenges that are value based, much of the book is a collection of examples of how we can transform not just those values, but also translate new values into actions.

Yet, it is not just climate change that is at issue. It is the ability for citizens to express their will using democratic systems. "The process of taking on the corporate-state power nexus that underpins the extractive economy is leading a great many people to face up to the underlying democratic crisis that has allowed multinationals to be the authors of the laws under which they operate – whether at the municipal, state/provincial, national, or international level. It is this corroded state of our political systems – as fossilized as the fuel at the center of these battles – that is fast turning Blockadia into a grassroots pro-democracy movement." (p. 361). Change is possible, and change on this scale has happened before, and the author specifically highlights the responses made to the Great Depression, the abolition of slavey and the independence movements against colonial powers, as these not only included political shifts but also economic ones (p. 545-545).

The book makes two arguments for action: support the smallscale efforts (and many examples of this are given) and use your collective power as citizens to change the system (policies and programs). Where to start? "That means cheap public transit and clean light rail accessible to all; affordable, energy-efficient housing along those transit lines; cities planned for high-density living; bike lanes in which riders aren't asked to risk their lives to get to work; land management that discourages sprawl and encourages local, low-energy forms of agriculture; urban designs that clusters essential services like schools and health care along transit routes and in pedestrian-friendly areas; programs that require manufacturers to be responsible for the electronic waste they produce, and to radically reduce built-in redundancies and obsolescences" (p. 91). Doing so "requires visionary long-term planning, tough regulation of business, higher level of taxation for the affluent, big public sector expenditure, and in many cases reversals of core privatizations in order to give communities the power to make the change they desire." (p. 95).

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PhD (x3) and Postdoc: Participatory urban governance

'Participatory urban governance between democracy and clientelism: Brokers and (in)formal politics' is a five-year research project financed by the European Research Council (2016-2021), led by Dr Martijn Koster. This research project investigates ethnographically how brokers position themselves in participatory urban governance. It examines their practices, discourses and networks, both in and outside officially sanctioned channels and institutions. The research conceptualizes brokers as 'assemblers', connective agents who actively bring together different government and citizen actors, institutions and resources and who combine formal and informal politics.

The project focuses on four cities, two in the Global North and two in the Global South: Rotterdam (NL), Manchester (UK), Cochabamba (Bolivia) and Recife (Brazil). It will develop a new framework for analysing brokerage in participatory urban governance, which will enhance our ability to understand the challenges of political representation more broadly, as well as the impact of brokerage on state-citizen engagement and on decision-making regarding the allocation of resources.

More on PhD options.

More on Postdoc option.


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Logan Cochrane

logan.cochrane@gmail.com

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