Tuesday, October 18, 2011 - 10:53 AM

Perhaps the single most remarkable development in 2011 is the wave of political protests that have occurred in widely-varying political contexts. In addition to the various upheavals that constitute the "Arab Spring," we've also seen tent cities in Israel, the "Occupy Wall Street" movement and its clones here in the United States, and various imitators in both Europe and Asia. This wave of political contagion is more widespread than the "velvet revolutions" of 1989 (though not yet as significant), and perhaps the nearest analogue would be wave of youth-revolutions and upheavals that occurred back in 1968.
What is going on here? Is there a common set of causes at work, or at least a common thread to otherwise diverse phenomena? I think so, because I see these upheavals as fueled by three important global developments.
The first factor is economic globalization, which has made many states both sensitive and vulnerable to events in far-away places, and led to rising inequality both between and within countries. Yet most governments have failed to enact remedial measures to soften the consequences of economic change and to restore a more level distribution of income, thereby ensuring some degree of economic pain and political discontent.
The second development is the globalization of information, which allows events and ideas to spread much more quickly. As a result, demonstrators in Cairo can watch what's happening in Tunis and imitate it, and then other people in other countries get the idea that protest can be effective, even if their particular grievances are somewhat different. And so it spreads, as the radical idea of ordinary people taking action against the seemingly impregnable becomes increasingly contagious. Plus, each group can learn from each other and feed off the sense of being part of a larger process, instead of feeling like isolated and powerless individuals with scant hope of success. This sort of thing has happened before in world history (e.g., in 1789, 1848, 1919, 1989, etc.), but never in so many far-flung and widely different contexts.
The third reason is the increasingly-evident incompetence and/or corruption of governing elites in many countries, and the tendency of governments to do too much to protect wealthy and powerful interests and not enough to help ordinary people. In Egypt, it was the overt corruption of the Mubarak regime, whether in the form of privileged deals for military officers or for Mubarak's son. In the United States, it was the taxpayer-funded rescue of "too big to fail" financial institutions as well as the "too-well connected to fail" recycling of some of the same people who helped create the whole mess in the first place. And then there's the continued recycling of policy ideas that had been discredited by events but never discarded. People may be disappointed by Obama, but real disenchantment comes from the growing realization that replacing him wouldn't make much difference and might make things much worse. You know the line: "Meet the New Boss....Same as the Old Boss." (Turns out Pete Townshend was a prophet when he wrote "Won't Get Fooled Again," which would be a nice anthem for many of these movements.)
There is, of course, a deeper taproot to all this. As my colleague Jenny Mansbridge reminded me in a superb talk I attended last week, (and which will be published next month in PS), the present combination of economic inequality and political gridlock is fatal to the proper functioning of democratic orders. In a capitalist democracy, corporate interests tend to be wealthier than the rest of society, and the state is the only actor powerful enough to intervene to prevent corporate interests from going too far and exploiting their position. This is what happened in the Gilded Age and again in the Roaring 20s, which eventually led to the Progressive Era and later the New Deal.
But if the political system is gridlocked, then the state cannot act quickly or decisively to retard corporate power. Even worse, as corporate interests grow stronger they tend to acquire greater political power (and especially when a tame Supreme Court helps them, as it did in the Citizens United decision). Instead of just hamstringing the state, corporate interests can get it to enact laws that favor them even more. The result will be rising economic inequality and precisely the sort of irresponsible and unregulated behavior that led to the Great Recession of 2007.
Put these three things together, and you have a recipe for global protests in very different countries. Despite the many differences between conditions in the United States, in Greece, in Egypt, in Syria, in Israel, or elsewhere, what unites the 2011 wave of global protest is the shared belief that the People in Charge do not know what they are doing, care more about their own wealth and well-being than they do about the common weal, or are simply too spineless and shallow to do what at least a few of them secretly know to be right.
Ask yourself: how many contemporary political leaders do you genuinely admire? How many of them would rate a paragraph, let alone a whole chapter, in a revised edition of Profiles in Courage? How many of them seem capable of giving you a straight answer to a hard question, as opposed to offering you a lot of happy double-talk? How many of them are better at making a powerful speech than they are at taking a principled stand and sticking to it? How many of them have really got your back, as opposed to pandering to the endless parade of well-heeled lobbyists and special interest groups? Is there political leader in your country who is not for sale?
If you've been paying attention, and you can't find such leaders in your country, and you having been watching the obscenely wealthy get richer and more powerful, so that they can rig the game to make themselves richer still, then you'd probably think about painting a sign and getting out in the streets. And if I didn't already have this blog for my soap-box, maybe I would too.
Spencer Platt/Getty Images
EXPLORE:GLOBALIZATION, 1989, CORRUPTION, DEMOCRACY, ECONOMICS, EGYPT, FINANCIAL CRISIS, HISTORY, INTERNATIONAL RELATIONS
It may be a bit early, Stephen, to objectify and theorize. TV pundits do that, and as a result create the almost always inadequate categories into which we then stuff phenomena, whether they fit or not.
Your paragraph on "incompetence and/or corruption" kind of pins the "corruption" part on the Middle East and the "incompetence" part on the US:
"In the United States, it was the taxpayer-funded rescue of "too big to fail" financial institutions as well as the "too-well connected to fail" recycling of some of the same people who helped create the whole mess in the first place."
I check out dozens of American (and other) websites and newspapers daily, and what I have been finding is that Americans are angry and disillusioned by their deeply corrupted political system. Justice is a big issue for them.
None of the Bush admin was held to account for lying the country into an illegal war, or for the widespread use of torture. Similarly, none of the banksters and investors are in jail (except for Madoff, who fleeced the rich). Most of all, the Citizens United case only magnifies the long-standing depth of corruption in American politics. These are all justice issues.
Politicians who feel constrained to say something nice about OWS invariably describe the protesters as "frustrated" rather than "angry," thus making them sound like babies at teething time. Obama has expressed his sympathy in these terms. But he has said nothing about the need to clean up the corruption in Washington--and that is at the heart of OWS.
Maybe I'm a bit too conventional but I do have some faith in my political leaders. I don't like many of them, but I don't want the system to crash.
Man, never have faith in any political leader!
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A terrific piece which I think nails the global reach of these protests, even to countries (like here in Australia) that have gotten off relatively less damaged by the global economic crisis.
But I think it's important to look at the longer-run economic underpinning of all this. The era of globalisation has also been an era where the economic growth has lagged the golden age of the post-WWII boom. This has culminated in a deep crisis that undermines the idea that capitalism works at all, let alone only working for the rich.
The economic elites have lost confidence in their own system, which opens the space for more radical questioning of the whole set-up.
Unlike the elites in 1968 there is no economic room for them to manoeuvre to head off these movements with a mixture of carrot and stick. It's all stick. And unlike the Stalinist elites in 1989, they don't have an alternative model to dupe people with. This time the free market is the problem.
There are those who suggest that we should treat all markets as free. However, one can see that structurally, that there are really 3 markets.
There is the free market. Here the consumer has alternatives and there is competition among those alternatives. This puts all the power in the hands of the customer. You are pandered and catered to. Truly, in this market the customer is always right. There are few ethical issues where most problems are cases of simple theft/fraud.
Then we have the professional market. Here select, highly trained people offer special help for people. This special relationship is known as the fiduciary duty, and means that the professional (provider) must put their client's interest ahead of their own. In these markets the customer may well be too ignorant to know if they were right or well served. Ben Franklin said it well, "a country boy between two lawyers is like a fish between two cats." The ethical issues may well be intense and are typically governed by boards/bars/groups of fellow professionals. That "shitty deal" Goldman Sachs was peddling would be easily recoverable under fiduciary law, where as under our corrupted "regulation" this is far less certain or clear.
We've removed one leg of gov't with the many limitations on our right to sue, and recoup losses. The courtroom was a deft, hard to bribe regulator which has been attacked by the GOP. Without the right to sue, or with severe limitations on court access, and access to disclosure of corp behavior we've substituted "regulation" with fear of real economic loss.
Finally, the last market is the utility/monopoly market. Here there is no (real or few) alternatives and no competition and the demand for their product/service is inelastic. Here the customer is powerless. But, these firms are also different from the others in the support they get from the government. Due to their scale and reach, they must have special access via eminent domain, condemnation, ports and eternalities. Often, the gov't is instrumental in funding these facilities, in zoning, funding through bonds and loan guarantees, specifications, and planning. The scale again means pollution is often a public issue again distinguishes this market from the free market. There are several ways these firms may be owned/operated. These may be privately held and regulated, or publicly owned and run as is nearly every water/sewage system in America.
Finally, there are at least two industries that are hybrids, these I call professional utilities, namely commercial (retail) banking and major healthcare. Here we have a mix of fiduciary duties and the ubiquity of utilities. Fiduciary roles get complicated when we separate the customer/client and the payer. In healthcare, whether it's the gov't or insurance or the survivors, often the patient may not be paying the bill. In banking, so long as the FDIC guarantees their deposits, there is a perverse support there as well (perverse to the fiduciary role and moral hazard).
I have never heard anyone articulate such a paradigm for the economy. I think this is important, as it offers a good analysis for which markets are inherently flawed, and hence must be somehow regulated. Also, this paradigm shows which markets gov't should likely avoid, and be limited from. Utilities and monopolies are special and are likely the cause of the very emergence of gov't.
We may be looking at something similar to the movement to Reform the Church in the 16th century. That had become bloated and corrupt, much like global capitalism today, and its dogmas, high priests, heresies, corruption, and wealth had to be swept away in favour of something closer to human needs.
I have been saying that, judging by the quality of our politicians I highly suspect their parents had to marry cousins to conceive them.
Drs. Ron Paul and Tom Coburn, Dennis Kuccinnich and Bernie Sanders
Other than these stalwarts, I don't know of many politicos at any level. These people have little power and influence. Companies don't need to lobby them, for it won't change their votes. Their idealism makes them feckless in a system that Tolstoy described well in his "Letter to Liberals"
http://www.lewrockwell.com/snyder/snyder14.html
While they all have economic roots, it's hard to generalize. The 'Arab Spring' was in reaction to rising food prices.
The Greek and euro riots are in response to necessary lower economic spending.
The OWS movement seems to be about greater government control, higher government spending, and is the only one that is for the current ruling administration.
Also, in terms of scale you're talking about hundreds of thousands of protestors in Europe and the Mideast/Africa v, a few thousand largely in New York. It's hard to generalize based on that, because the tendency is always to insert one's preconceived notions onto these events.
It's more than pure economics. It's politico-economic. There seems to be no more voice for the people. The financial sector today is over 30% of the economy, where as under Reagan it was much closer to 10%. The financial cost of everything has risen. These costs are hidden in bonds, lending and manipulation of markets. Our utilities costs have risen too, as our political checks on these markets are failing us, whether it be healthcare, insurance; name the regulated market, and we see regulatory capture. Deregulation of electricity has cost citizens everywhere it's been implemented--in some 18 states I think, yet we've yet to see bills introduced to repeal it. There ain't no money in doing the right thing, so the right thing never gets done. That political intractability is no doubt fueling the frustration and anger of the protesters, and those that sympathize with them
"In a capitalist democracy, corporate interests tend to be wealthier than the rest of society, and the state is the only actor powerful enough to intervene to prevent corporate interests from going too far and exploiting their position."
Stephen conveniently omits two other segments of the population that tend to be wealthier than the rest of society that represent another axis of interests: college professors and government employees. Who is powerful enough to intervene to prevent these interests from going too far and exploiting their position when they are either part of the state or depend on the state for their largesse?
We are rapidly reaching a point where American society will be three classes: the super-rich, the intellectual/state elites, and the rest of the population.
People such as Steve Walt like to think they are on the side of the 99%-ers, but really they are just the other side of the coin of that 1%.
Yo, I have been to some of my prof's houses. They are not making bank. Maybe the Princeton profs are making the chedder, but not yo regular normal professor. And hasn't this downturn mostly affected goverment jobs in the US? Private sector has been hiring OK last few years. Oh, and the Greek, Italian, and Spanish protestors have been goverment employees. The Wisconsin protestors were goverment employees. The coming austerity will probably bring more of 'em out , that is for sure.
The financial sector today is over 30% of the economy, where as under Reagan it was much closer to 10%. The financial cost of everything has risen. These costs are hidden in bonds, lending and manipulation of markets. Our utilities costs have risen too, as our political checks on these markets parentingguide are failing us, whether it be health-care, insurance; name the regulated market, and we see regulatory capture.
Stephen M. Walt is the Robert and Renée Belfer professor of international relations at Harvard University.
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