Why do people support Capitalism?

Why do people support Capitalism?

This article is from the blog buildingarevolutionarymovement.

In this post I’ll explain why people say they support capitalism and then the actual reasons why people support capitalism. To end capitalism we need to understand why people support it. I’m listing the positives in the post that I don’t agree with. In future posts I’ll describe the myths of capitalism and the reasons why we need an alternative.

It’s easy and common to conflate capitalism, liberalismneoliberalism and free market economics. Many use them interchangeably and I’m going to go with that for this post.

 

Why people say they support capitalism

There isn’t a viable alternative economic system. Capitalism’s supporters agree that capitalism isn’t perfect but it’s all we’ve got. [1]

The moral argument for capitalism is based on individual freedom being a natural right that pre-exists society. Society is valued and justified because it benefits humans and enhances economic freedom, instead of limiting it.

The practical argument for capitalism is that many forms of centrally controlled governments have been tried and failed. Therefore privately owned and controlled means of production is the only viable way to run economies. [2]

Everything is better under capitalism. Capitalism has resulted in improved basic standards of living, reduction in poverty and increased life expectancy. There is also the argument that Western capitalist countries have the happiest populations because they can consume whatever products and services they like. [3]

Economics arguments. Capitalism results in exponential growth, which allows companies and individuals to benefit. This relates to the idea of, ‘A rising tide lifts all boats’, where if the rich get richer, then this will benefit everyone. Capitalism produces a wide range of goods and services based on what is wanted or can solve a problem. It is argued that capitalism is economically efficient because it creates incentives to provide goods and services in an efficient way. The competitive market forces companies to improve how they are organised and use resources efficiently. [4]

In 23 Things They Don’t Tell You About Capitalism, Ha-Joon Chang describes the free market ideology:

“We have been told that, if left alone, markets will produce the most efficient and just outcome. Efficient, because individuals know best how to utilize the resources they command, and just, because the competitive market process ensures that individuals are rewarded according to their productivity. We have been told that business should be given maximum freedom. Firms, being closest to the market, know what is best for their businesses. If we let them do what they want, wealth creation will be maximized, benefiting the rest of society as well. We were told that government intervention in the markets would only reduce their efficiency. Government intervention is often designed to limit the very scope of wealth creation for misguided egalitarian reasons. Even when it is not, governments cannot improve on market outcomes, as they have neither the necessary information nor the incentives to make good business decisions. In sum, we were told to put all our trust in the market and get out of its way.

Following this advice, most countries have introduced free-market policies over the last three decades – privatization of state-owned industrial and financial firms, deregulation of finance and industry, liberalization of international trade and investment, and reduction in income taxes and welfare payments. These policies, their advocates admitted, may temporarily create some problems, such as rising inequality, but ultimately they will make everyone better off by creating a more dynamic and wealthier society. The rising tide lifts all boats together, was the metaphor.” [5]

Capitalism has brought significant technology innovations. These included smartphones; the internet with rapid home delivery; streaming movies; social media; and automation has dramatically increased labour productivity. [6] Business invests in research and development to create better products and remain competitive. Employees work to improve their best practice to increase their productivity. [7] Supporters of capitalism argue that capitalism is very flexible and adaptable at dealing with society’s problems as they develop. An example would be climate change, with technologies such as renewables, carbon capture, nuclear power and geoengineering.

Capitalism is a social good and provides services to others. Selfishly working to make money means producing goods and services that others need. Even overpaid professions such as playing sport, or unpopular professions such as banking. This means that people can earn money and solve a problem for someone else. [8]

Capitalism promotes equality. This is the ‘American Dream’ idea that you may start out poor but if you work hard, you can be successful and rich. This is also known as meritocracy. [9]

Capitalism fits well with human nature. Humans are naturally selfish, greedy and competitive. People that work hard are successful and outcompete their competitors, and are therefore rewarded financially. Capitalism also allows for other aspects of human nature such as altruism, patience and kindness. This is done through the creation of welfare systems and charities. [10]

Capitalism and democracy work well together. Capitalism is built on democracy. Everyone gets one vote so they have equal political power, which is not affected by their race, gender or views. [11] Capitalism also encourages people to get involved in all aspects of society to get what they want. This includes getting involved with both governance and the government, from voting in elections, to standing in local or national elections. [12]

Capitalism gradually balances differences across countries through free markets and free trade. Countries can use their competitive advantage to benefit themselves and also access goods and services from the rest of the world. [13]

Capitalism maintains low taxes, which is good for workers and businesses. Low business taxes encourages companies to stay and provide more jobs by reinvesting the money they would pay in tax into the company. Some also argue that low business tax generates more tax for the government. [14]

Allan H. Meltzer, who wrote ‘Why Capitalism’, argues that capitalism has three strengths: economic growth, individual freedom, and it is adaptable to the many diverse cultures in the world. [15] He makes the case for capitalism in more detail:

“Capitalist systems are not rigid, nor are they all the same. Capitalism is unique in permitting change and adaptation, and so different societies tend to develop different forms of it. What all share is ownership of the means of production by individuals who remain relatively free to choose their activities, where they work, what they buy and sell, and at what prices. As an institution for producing goods and services, capitalism’s success rests on a foundation of a rule of law, which protects individual rights to property, and, in the first instance, aligns rewards to values produced. Working hand in hand with the rule of law, capitalism gives its participants incentives to act as society desires, typically rewarding hard work, intelligence, persistence and innovation. If too many laws work against this, capitalism may suffer disruptions. Capitalism embraces competition. Competition rewards those who build value, and buyers with choices and competitive prices. Like any system, capitalism has successes and failures—but it is the only system known to humanity that increases both growth and freedom. Instead of ending, as some critics suppose, capitalism continues to spread—and has spread to cultures as different as Brazil, Chile, China, Japan, and Korea. It is the only system humans have found in which personal freedom, progress and opportunities coexist. Most of the faults and flaws on which critics dwell are human faults. Capitalism is the only system that adapts to all manner of cultural and institutional differences. It continues to spread and adapt, and will for the foreseeable future.” [16]

 

Reasons why people actually support capitalism

So why do ordinary people continue to support capitalism or not actively seek an alternative economic system? This is a huge, complex question so I don’t plan to answer this in detail now. I do want to outline some broad reasons.

There is no alternative (tina). When Margaret Thatcher used this phrase, she meant that capitalism was the only viable economic and political system. In the 21st century it has become near impossible for most to imagine a coherent alternative to capitalism, this is known as ‘Capitalist Realism’. [17] The dominant narrative is that any attempts to organise societies in a non-capitalist way have been complete failures, and this has been accepted by many. Movements, leaders and parties which have attempted to reform capitalism by creating measures to bring about a fairer, more equal and less harsh society, have been attacked, distorted, misrepresented and finally crushed, examples being Corbynism in the UK, Bernie Sanders in the USA, and Syriza in Greece. This results in ‘disaffected consent,’ which I wrote about in this post. [18]

Need a job to pay bills. People are understandingly cautious about supporting an alternative to capitalism that might disrupt their lives and make things more difficult or worse. However unpopular and unstable capitalism is, it does allow a large number of people to live.

Want a fairer capitalism. Many that are struggling just want capitalism reformed to make their lives a bit better, rather than grand plans to change everything. These are seen as achievable, reasonable, small changes. Many are too busy trying to survive and provide for their families to engage with politics themselves – meetings, groups, campaigns are all too time consuming. They want this done for them by political parties.

Have not experienced collective struggle and don’t understand things could better under a different economic system. The left is historically weak, so many that want things to be better have no experience, knowledge, access and interest in left organisations and institutions, eg the trade unions. Many are anti-left and identify with the Tories.

Way out of poverty. For many born poor, capitalist society offers some that work hard and are lucky the chance to get rich, or if not rich then to have a comfortable lifestyle.

Personally benefit from capitalism. For those that enjoy the benefits of capitalism, this is a powerful motivator to keep things as they are. They have worked hard for their money and private property,  and are looking forward to retirement with a pension plan. The Tories are the political party of capitalism. Many may not really like the Tories but they are perceived to be good at running the economy and maintaining the status quo. For many this is the deciding factor.

Bought off by consumption. The decline in real wages since the 1970s, and the lack of opportunities to make meaningful democratic inputs into political decision making, has been compensated by the expansion of consumption – homes, cars, electrical equipment, furniture, holidays etc. This has been made possible by the explosion of household debt and cheap goods from Asia. [19]

Economics as a subject is based only on the the theories of those who support it. University courses in economics are only taught by those that support capitalism. They do not teach the significant problems with capitalism or the viable alternatives. [20]

Endnotes

  1. https://listverse.com/2010/12/24/top-10-greatest-benefits-of-capitalism/
  2. https://www.quora.com/What-are-the-strongest-arguments-in-defense-of-capitalism?share=1
  3. https://www.dailywire.com/news/5-statistics-showing-how-capitalism-solves-poverty-aaron-bandlerhttps://listverse.com/2010/12/24/top-10-greatest-benefits-of-capitalism/https://en.wikipedia.org/wiki/Enlightenment_Now
  4. https://listverse.com/2010/12/24/top-10-greatest-benefits-of-capitalism/https://vittana.org/17-pros-and-cons-of-capitalismhttps://netivist.org/debate/pros-and-cons-of-capitalism
  5. 23 Things They Don’t Tell You About Capitalism, Ha-Joon Chang, 2010, Introduction
  6. https://www.jacobinmag.com/2015/12/erik-olin-wright-real-utopias-anticapitalism-democracy/
  7. https://vittana.org/17-pros-and-cons-of-capitalism
  8. https://vittana.org/17-pros-and-cons-of-capitalism and https://listverse.com/2010/12/24/top-10-greatest-benefits-of-capitalism/
  9. https://listverse.com/2010/12/24/top-10-greatest-benefits-of-capitalism/ and https://vittana.org/17-pros-and-cons-of-capitalism
  10. https://listverse.com/2010/12/24/top-10-greatest-benefits-of-capitalism/
  11. https://listverse.com/2010/12/24/top-10-greatest-benefits-of-capitalism/
  12. https://vittana.org/17-pros-and-cons-of-capitalism
  13. https://netivist.org/debate/pros-and-cons-of-capitalism
  14. https://www.conservativehome.com/thecolumnists/2018/04/chris-grayling-the-argument-for-capitalism-over-socialism-cannot-be-won-with-a-history-lesson.html and https://www.telegraph.co.uk/finance/economics/11498135/Why-lower-corporation-tax-means-more-for-Treasury.html – download word doc of article Why lower corporation tax means more for Treasury
  15. Why Capitalism, Allan Meltzer, 2012, page ix
  16. https://www.writersreps.com/Why-Capitalism
  17. Capitalist Realism, Mark Fisher, 2009, page 2
  18. https://buildingarevolutionarymovement.org/2020/04/29/what-is-neoliberalism/
  19. Neoliberal Culutre, Jeremy Gilbert, 2016, page 25
  20. Richard D. Wolff Lecture on Worker Coops: Theory and Practice of 21st Century Socialism, 3 mins, https://www.youtube.com/watch?v=a1WUKahMm1s
Global Extraction Film Festival 9-12 September 2021

Global Extraction Film Festival 9-12 September 2021

Global Extraction Film Festival
9-12 September 2021

The Global Extraction Film Festival (GEFF), launched last year by Esther Figueroa (Vagabond Media) and Emiel Martens (Caribbean Creativity), has announced the selection of over 150 films for GEFF2021. The festival, which will be available online for free from September 9-12, aims to bring attention to the destructive impacts of extractive industries and to highlight communities across the world who are bravely defending against annihilation while creating livable futures.

GEFF2021 will feature 4 programs with over 150 documentaries and urgent shorts from over 40 countries, with a wide range of compelling topics that everyone needs to think about. Where, how and by whom is the food we eat, water we drink, clothes we wear, materials in our technology, the energy that powers our lives produced and transported? What are we to do with the billions of tons of waste we create daily? What is our relationship to other species and all life on the planet? Extraction has caused the anthropocene; the climate crisis is real and cannot be wished away or solved by magical technologies based on extraction.

PROGRAM ONE: GLOBAL PERSPECTIVES
Our General Selection film program, Global Perspectives, offers 26 feature documentaries and urgent shorts that focus on interrelated issues affecting the world, such as the climate <crisis, water, food, energy, mining, overtourism, colonial legacies. Selected films include Bright Green Lies, which exposes the extraction dependent and ecologically destructive reality of “green” technological solutions; Grit, which tells the story of Dian, who at 6 years old, along with 60,000 displaced people, suffered from an industrial accident in Indonesia, and later becomes a political activist fighting for justice; Gather and Final Straw, Food, Earth, Happiness, which present ancient alternatives to industrial agriculture; Sustenance and The Superfood Chain,which explore the food we eat, where it comes from and the consequences of global food chains; and Eating up Easter and Crowded Out: The Story of Overtourism, which demonstrate that tourism is a highly extractive industry.

PROGRAM TWO: FOCUS ON THE AMERICAS
This special Focus on the Americas is our most extensive and prominent GEFF2021 film program offering over 100 feature documentaries and urgent shorts from 30 countries in the Americas, from Argentina in the South to Canada in the North and across the Caribbean islands. The Americas are central to the creation of the modern world. This is because the ecocidal and genocidal pillaging and settlement of the Americas by European Imperial powers led to the wealth of Europe (and later North America), and to the extraction intensive industrial revolution that accelerated the anthropocene and caused the climate emergency in which we are now living. Understanding extraction in the Americas is requisite for understanding the global political economy. Understanding the Americas is also essential to realizing there are Indigenous alternatives to planetary destruction, that communities throughout the Americas have been resisting erasure for centuries, and continue to protect and defend that which is necessary to all life.

PROGRAM THREE: HUMAN-ANIMAL STUDIES
over 10 feature documentaries and urgent shorts about the relationship between humans and animals, and the impact of the extractive industries on animals. Humans are animals who dominate the planet and decide which other animals have value, are our food, our friends, our enemies, are pests, can be sacrificed, made extinct. For example, selected feature Artifishal – The Fight to Save Wild Salmon, shows the devastating impact of dams and farmed salmon on wild salmon populations., while The Last Male on Earth tells a tale of extinction.

PROGRAM FOUR: PRESENTED BY PATAGONIA
This special selection offers 8 feature documentaries and urgent shorts produced by Patagonia Films about people fighting for environmental and food justice, to protect last wild places and species, to find community based solutions. For example, DamNation – The Problem with Hydropower chronicles the United States of America’s nationally promoted narrative of man’s domination of nature, then decades later, the realization that humans are completely dependent on nature, that large-scale dams are one of our very worst inventions and should be removed. Two other selected Patagonia films, Public Trust – The Fight for America’s Public Lands and Lawqa – Que el Parque Vuelva a Ser Parque show how public lands and national parks in the USA and Chile have been handed over to extractive industries, removing the people, plants and animals who used to be there, and polluting and degrading the environment.

GEFF2021 EVENTS
Along with these four Film Programs, there will be panel discussions about extractive industries and their impacts on specific places and peoples, as well as Q&A with filmmakers. These events are hosted by GEFF’s partners including Deep Green Resistance, London Mining Network, Asia-Pacific Ecological Network, Red Thread, Freedom Imaginaries.

Contact:

Emiel Martens: emiel@caribbeancreativity.nl

Esther Figueroa: vagabondmedia1@mac.com

PRESS KIT: https://bit.ly/GEFF2021-Google-Drive


Note: DGR is organizing two events for GEFF2021.  The first is a discussion on Bright Green Lies with Director Julia Barnes at 4 PM (Pacific Time) September 11. You can find the Facebook page here. The second is a discussion with director on how films can be used for resistance at 5 AM (Pacific Time) September 11. You can contact DGR Asia Pacific to join the event.

Types of Social Movements

Types of Social Movements

This article is from the blog buildingarevolutionarymovement.

Featured image: Members of Walk of the People, a 7,000-mile peace walk from California to Russia, reach New York City in 1984. Photo by Kevin James Shay.

This post describes different types of social movements. These are broad classifications and generally social movements are made up from a combination of types. Their type can change at different points in the social movements lifecycle.

Reform movements seek to change some parts of society without completely transforming it. They normally exist in democratic societies where criticism of existing institutions is acceptable. Examples include environmental protection campaigns and introducing a minimum wage.

Revolutionary movements seek to completely change every aspect of the existing social system and replace it with a greatly different one. These include Communist movements and the 1960s counterculture movement.

Redemptive movements are trying to find meaning and aim to create inner change or spiritual growth in people. Examples include Alcoholics Anonymous and the New Age movement.

Alternative movements are focused on self-improvement and changes to individual beliefs and behaviour. Examples include the local food movement and alternative health movement.

Resistance movements seek to block a planned change or undo a change already made to society. Examples include the Ku Klux Klan and pro-life movements.

Migratory movements are large numbers of people that leave a country and settle in another place. They are a migratory social movement when they have a shared focus of discontent, purpose, or goal to move to a new location. Examples of migratory social movements include the Zionist movement, Jews moved to Israel and the movement of people from East Germany to West Germany.

Utopian movements aim to create an ideal or perfect society which is in people’s imaginations but not in reality. It is based on the idea that people are basically good, cooperative and altruistic. Examples include the nineteenth-century Utopian socialist movements of Robert Owen and Charles Fourier. Also the Sarvodaya movement. [1]

Political movements are collective attempts by groups of individuals to change government policy or society. This can include: “to extend the criteria for inclusion within decision making; to reveal and fight against bias that privileges certain interests over others within the political system; to gain access to and influence within existing decision-making processes; to open up new channels for the expression of previously excluded demands.” [2]

Cultural movements are movements of ideas and performances rather than interests and politics. They do not have a clear political focus; are not a reaction to collective interests, injustices or demands made by movements on the streets; they are more focused on artefacts and performances of mobilisations such as music, dress and shared experiences rather than marches, demonstrations and protests; these movements have great influences through public opinion and attitudes than through legislation or policy change. Examples include Romanticism and the Hippie movement. [3]

Antagonistic movements challenge society and its politics in fundamental ways. It questions the allocation of resources between social groups and classes, and the ideological and organisation basis of production, distribution and exchange of key social and economic goods. Examples include radical environmentalists critique of economic growth that is incompatible with environmental protection and anti-capitalist movements use of direct action for ideological reasons against liberal democracy instead of instrumental changes to influence policy. [4]

Claimant movements aims to change the distribution of resources, roles and rewards within society and organisations. Examples include the mobilisation of low waged workers, disabled campaigns for equal access to public buildings and transport, and campaigns to reduce the age of consent for homosexual sexual relations. [5]

Countermovements or countercultures attempt to create forms of expression and association which are opposed to mainstream cultural norms of society. Examples include the youth movements of the late 1960s and early 1970s, and the North American Beat Generation. [6]

Defensive social movements attempt to defend established traditions, customs, practices, and forms of social interactions from changes due to modernisation. There are also known as Resistance movements. Examples include the German anti-nuclear movement, Ku Klux Klan and pro-life movements. [7]

Global social movements (Transnationalism) operate at the international level, coordinating activities and resources that is focused on a shared goal for social and political change. Globalisation has resulted in improved communications, international mobility and cultural exchange and global governance institutions and corporations. Examples include the anti-globalisation movement, global justice movement and fossil fuel divest movement. [8]

Offensive social movements have radical transformational agency and emancipatory potential. They are in contrast to resistance social movements, described above. An example is the feminist movement. [9]

Poor peoples’ movements are movements that focus on the interests of poor people that are separate from work and labour issues. These include segregation, housing, education provision, fuel poverty and broader community provisions in developed nations with no or limited welfare state services. Examples include the Poor People’s Campaign in the US in 1968 and 2018. Also the Poor People’s Alliance in South Africa from 2006-9. [10]

Urban social movements are grassroots movements that aim for system change in the urban environment or general political and economic situation. They attempt to gain control of urban processes such as housing provision, service provision, resisting unwanted development, participation and influence over planning decisions, tenants’ control over public housing. They are different from preservation societies and community associations. [11]

Endnotes

  1. http://www.sociologydiscussion.com/social-movements/social-movements-meaning-causes-types-revolution-and-role/2248 and https://opentextbc.ca/introductiontosociology/chapter/chapter21-social-movements-and-social-change/)
  2. https://en.wikipedia.org/wiki/Political_movement, Social Movements: The Key Concepts, Graeme Chesters and Ian Welsh, 2010, p135
    Challenging Codes: Collective Action in the Information Age, Alberto Melucci, 2008 CH12
  3. What is a Social Movement (What is Sociology), Hank Johnston, 2014, page 80-82
  4. Social Movements: The Key Concepts, page 29
  5. Social Movements: The Key Concepts, page 44
  6. Social Movements: The Key Concepts, page 53
  7. Social Movements: The Key Concepts, page 60
  8. Social Movements: The Key Concepts, page 88
  9. Social Movements: The Key Concepts, page 125-6
  10. Social Movements: The Key Concepts, page 138-9
  11. Social Movements: The Key Concepts, page 161-2
On the Colombian plains, a leader stands up for her people against land theft

On the Colombian plains, a leader stands up for her people against land theft

  • Ana Villa has fearlessly confronted agribusiness multinationals and armed groups that have tried to take over the land where rural communities and Indigenous people live in the Colombian plains.
  • She risks her life fighting for the rights of vulnerable communities in the municipality of Cumaribo, a region that serves as the intermediate zone between the savanna and the Amazon rainforest in eastern Colombia’s Vichada department.
  • The communities’ support has empowered her to continue her fight in a dangerous region for environmental defenders.

This article originally appeared in Mongabay and is a journalistic collaboration between Mongabay’s Latin America (Latam) team and Colombian digital news website Rutas del Conflicto.

Featured image: Ana Villa has made several trips to Bogotá to report safety and environmental breaches in the Colombian plains. Image by Ana Villa.

Ana Villa has traveled dozens of times on the highways of Vichada department in eastern Colombia, in service to her rural community. These trips can take up to 18 hours and cross an extensive savanna that’s the ancestral home of Indigenous communities and today hosts landless peasant farmers, or campesinos, who arrived in the area several decades ago. More recent arrivals, coming in the past 15 years, include agribusinesses, agroforestry and oil companies.

Villa defines herself as a “woman of character,” and her persistence has been key when dealing with land rights and environmental issues on behalf of her people in the municipality of Cumaribo. “Anita,” as her acquaintances call her, has not been afraid to confront the multinationals that have come to the region to establish large monoculture plantations, or the violent criminal groups that seek to dispossess rural and Indigenous communities of their land.

In 1991, Villa and her family arrived in Cumaribo seeking better opportunities and fleeing the violence that displaced them from their home in Cubarral, in Meta department, also on the Colombian plains. In 1996, she bought Las Azucenas, an estate that, in her words, “was only savanna and cheap,” but had no property title, like many other plots in Vichada.

Cumaribo is the largest municipality in Colombia by area, at 74,000 square kilometers (28,500 square miles) — more than three times larger than El Salvador, and more than twice the size of Belgium. It’s located in the Orinoquía region, the basin of the Orinoco River that forms an intermediate zone between the savanna and the Amazon rainforest. It’s in this region, with its enormous water wealth, where farmers like Ana Villa have sought out opportunities to build a dignified life. Large companies have also been attracted to the region, drawn by the extensive stretches of fertile soil in which to set up their industrial farms.

“There are two kinds of leaders: born leaders who seek to defend their community, and leaders on paper who claim for themselves and never seek collective gain,” says Luis Torres, a rural community leader from Vichada and friend of Villa’s. “She is a born leader. We admire her and that is why she’s in charge of everything.”

Villa has been active across a range of platforms to report the abuses that rural and Indigenous people living in Vichada experience. She has received threats from criminal groups for trying to help dozens of families obtain land rights. On one occasion, armed men cornered her and she confronted them. Besides her reports, she has also stood up to large agribusiness multinationals trying to take over land in the region.

This is her story.

Fearless defender

“I started to worry about environmental issues when I saw that the streams on my farm were drying out,” Ana Villa says. “I filed a complaint after they sprayed the entire river basin with glyphosate. Since then, I started to fight for water.”

Her leadership and drive to protect natural resources soon extended beyond Cumaribo. Villa has taken her claims and protests to Yopal, the capital of the Casanare department, also in the Colombian plains. In 2014, the eastern region of Colombia was gripped by an intense summer that caused water shortages.

Some communities in the affected departments took their grievances to Yopal to demand answers from Corporinoquia, the departmental environmental authority. Leading environmental activists, including Villa, met to demand the resignation of Corporinoquia’s executives. They argued the authorities had taken little action in times of drought and didn’t follow up on complaints from communities about water contamination by the oil and agroforestry industries. “You go and report [it] and nothing is done. We wanted them to quit because they weren’t doing what they were supposed to do,” Villa says.

Martha Jhoven Plazas Roa, at the time the director of Corporinoquia, said in the authority’s 2014 accountability report that Corporinoquia had responded to most of the complaints and had carried out proper environmental controls in the region. She said that of the 1,123 complaints the corporation received in 2014, it handled about 1,000.

However, according to Villa, in the almost seven years since then almost nothing has changed; the complaints have not yielded the expected results, and companies continue to pollute the water. Making a request to the environmental authority is more complex today because its headquarters in Cumaribo has been closed since the end of 2020. Anyone trying to engage with Corporinoquia must travel at least five hours to La Primavera, another municipality in Vichada.

Being the leader of her community entails many responsibilities for Villa, including taking care of her neighbors’ and colleagues’ requests, and being the face of the claims against municipal administrations, public force, settlers who want to take over lands, multinational agribusiness companies, and even criminal armed groups. Addressing all this has put Villa in danger on several occasions. In 2014, while backing the protests against Corporinoquia’s management, she received her first death threat. “A man called me and said that my community had to obey him and leave the companies alone,” she recalls.

A year later, in 2015, while she was on her way to a meeting with villagers petitioning for their land rights, she was intercepted by armed men. “I don’t know what happened to me at that time. I had a lot of [anger] and I started telling them everything that crossed my mind: that they were used to killing people tied up because they were cowards. I told them that if they were going to kill me, they would have to kill me right there,” Villa says. Some residents of Cumaribo who witnessed the incident came to her aid and forced the three armed men to leave.

But Villa also speaks firmly to villagers if she sees that they are the ones damaging the environment. “The truth is that community members are targeted to plant coca. Sometimes they don’t think about the future,” Villa says, noting that the difficulty of growing food crops often pushes rural people to cultivate the more lucrative coca plant for the illegal drug trade. “In several meetings, I have told them that we must not cut down the forests, that we [should] plant the savanna and take care of the forests in Vichada because they are very small, and from there, streams that make up the river basin are born. If we cut down the forests, we are going to kill the fauna, we will destroy everything.”

“We trust Anita and that’s why we’ve asked her to stand up against it all,” says Torres, the community leader. “We take care of each other because those of us who claim land are targets of threats.” Villa says the community’s support is her source of strength, and that she’s not afraid to exercise leadership in a dangerous region for environmental defenders because “the community has my back, we all take care of each other.”

Claiming land

2021 brought good news for Ana Villa and her family. After more than a decade of claims, they received the property title to Las Azucenas, the farm they bought in 1996. This win provided another impetus for Villa to continue supporting 13 families in her municipality who are also seeking official titles to the lands they have inhabited for decades.

Villa has played a fundamental role in the community since 2014, when she witnessed families from a village in Cumaribo being displaced from where they lived. The villagers have sought official ownership of the land from the National Land Agency (known by its acronym in Spanish as ANT). Villa says she witnessed armed men arrive claiming to be the owners of those properties. One of the displaced villagers, Nepomuceno Pilón Caicedo, later became Villa’s friend and partner in pushing the families’ claims. “We are settlers. When we arrived there was nothing. We built our houses there and eventually the village,” Caicedo says. Villa has helped them contact lawyers for advice and collect information to request ownership of the lands. “I help the community members with information, contacts and writing documents,” she says.

Her activism has made Villa an expert on land issues. “When I started as a leader in the Community Action Council, I joined the Norman Pérez Bello Claretian Corporation as a volunteer and I began to learn about land claims and what to do in those cases,” she says. The Norman Pérez Bello Claretian Corporation is an organization that assists vulnerable communities, rural and Indigenous people fight for their rights. To date, Villa has helped 20 families in various villages who are in the process of formalizing ownership of their lands with the ANT, or by making requests to the Land Restitution Unit, the government agency in charge of verifying that applicants have lost their lands due to Colombia’s long-running armed conflict, and taking these cases before specialized judges.

An official with the Norman Pérez Bello Claretian Corporation describes Villa as a very active leader who has been present in various political events to report what is happening in her community and the abuses that villagers and Indigenous people who live in Vichada are going through. “Ana helped us a lot to build and establish a protection and self-care system in rural areas,” the official says. “She is a woman who has always made an effort to report and make her voice heard as a campesina who defends human, land, ecosystem and environmental rights.”

In 2013, Villa and other social leaders created the Association of Community Action Council of Vichada (Asojuntas Vichada), which was the beginning of the reports regarding the irregular accumulation of vacant land by various companies on the Colombian plains. This is one of the major battles she has fought.

In the council, she met Luis Guillermo Pérez Casas, a lawyer. Together, they began to document how the company Colombia Agro, which at the time was owned by the U.S. multinational Cargill, had accumulated about 50,000 hectares (nearly 124,000 acres) comprising more than 40 campesino properties. Cargill had done this with the assistance of Brigard Urrutia, a law firm, it was later revealed.

Colombia Agro had created dozens of paper companies, each of which would buy a piece of land and thus evade the limits on accumulating vacant land. Under a 1994 law, no individual or company may own more than one property that has been vacant. The legislation seeks to guarantee that state lands are handed over to underprivileged villagers and distributed to a few. In Vichada department, no more than 3,000 hectares (7,413 acres) can be granted to a single applicant.

Cargill, one of the largest agribusiness companies in the world, has had a presence in Colombia since the 1960s. Communities in several countries where the company operates have complained about its business and environmental practices, according to a 2019 report by the U.S. environmental campaign group Mighty Earth.

Ana Villa and the lawyer Luis Guillermo Pérez showed how Cargill, with the help of Colombian officials, had acquired land larger than the urban and suburban areas of Bogotá, spanning 47,700 hectares (118,000 acres). Villa says she began investigating the case when several foreigners arrived in the region to buy the land that the government had already granted to villagers after a process that took decades. She says many of the villagers sold their land at low prices due to the difficult conditions of violence in which they lived. The outsiders, after a few months, resold the land to Cargill for much higher prices.

Villa says that while the company was obtaining titles for properties in Cumaribo, rural and Indigenous communities who had been trying for years to obtain land titles continued to wait in vain. Mongabay Latam and Rutas del Conflicto were able to verify that the ANT had denied several adjudication requests from Villa’s neighbors, who, as victims of forced displacement, had to go to the Land Restitution Unit. The unit accepted their cases and will present them before a judge.

In 2013, Villa and Pérez’s complaint reached Colombia’s Congress, via the offices of Senator Jorge Enrique Robledo and Representative Wilson Árias. The two congressmen that same year initiated a debate in which they stated that the then Colombian ambassador to the U.S., Carlos Urrutia, was a partner in the law firm advising Cargill. Villa traveled from Cumaribo to Bogotá and participated in the debate in Congress, testifying about what she and other leaders in the area had documented.

After the debate, Urrutia resigned as ambassador, but Cargill and its subsidiary remained in the area as owners of the properties where corn and soy crops were being cultivated. Villa continued to be the spokesperson for the rural and Indigenous communities who complained daily about the effects of the agrochemicals used by the company.

The fight against environmental pollution

In Cumaribo several rural and Indigenous communities have complained to Corporinoquia about Colombia Agro’s environmental behavior between 2013 and 2015. Villa has led several of those claims to protect the health of Indigenous people as well as the ecosystems of the area. “They all drink the water from the river, that’s what they bathe with. Fish died some time ago. We went with the engineer Julián Quintero” — a former Corporinoquia contractor who has helped Villa draft the environmental complaints — “and we even saw dead rays, and the Indigenous people got sick,” Villa says.

The mismanagement of Colombia Agro’s waste has been recorded in several visits made by Corporinoquia. Mongabay Latam and Rutas del Conflicto requested information on these visits, and the environmental authority said it has carried out five inspection processes since 2013, in which it found that Colombia Agro did not have permits for the discharge of industrial wastewater.

In two visits, it found an “open-air disposal of solid and hazardous waste” on two properties,” as well as “the illegal capture of water (surface and underground) and discharge of domestic and non-domestic wastewater to the ground, without the respective permits” on three properties.

The complaints against the company’s environmental impact escalated into a criminal prosecution in 2016, after a villager living close to the company reported the aerial spraying of crops using the herbicide paraquat. According to Colombian environmental regulations, this chemical may only be used manually. The newspaper El Espectador reported in 2015 that prosecutors had charged various officials from Colombia Agro with environmental damage, including former manager Juan Aquilino Pérez and the contractor in charge of aerial spraying.

Mongabay Latam and Rutas del Conflicto were able to verify that Aquilino Pérez and other company officials and contractors were charged in 2016 for the illegal use of resources, aggravated damage to renewable resources, and environmental contamination. As of March 2021, the criminal process is still ongoing and no ruling has been handed down.

According to the residents of the area, the prosecution for environmental damage caused Colombia Agro to reduce its operations in the area in 2017. However, Ana Villa says that in 2019 the company returned stronger and resumed its agribusiness project. To find out if they are still operating in the area, we searched for the ownership titles and confirmed that they continue to belong to Colombia Agro through the companies it created to acquire them. By reviewing documents from the Chamber of Commerce, we were also able to confirm that Cargill is no longer associated with Colombia Agro.

The documents show that, in 2016, the parent company that owns Colombia Agro went from Black River SAS, which was a Cargill subsidiary, to Proterra, a company created by former Cargill officials.

Robert Philipp Hutter, who, according to his LinkedIn profile, worked for Cargill in 1999 and is the son of former Cargill president Heinz Hutter, is also the president of Proterra. According to its website, Proterra is a private equity fund manager, and while Cargill no longer owns it, the multinational still “maintains its relationship with Proterra as committed limited partner to the Funds.”

Mongabay Latam and Rutas del Conflicto were able to establish that Matthew David Waller, partner and head of finance and operations of Proterra, has an ongoing criminal case with Colombian prosecutors for damage to the environment, related to the Colombia Agro case and its properties in Vichada.

We contacted Cargill representatives in Colombia to ask if the company directly managed the properties, if it had resumed the agribusiness project in Vichada, and if it had made adjustments to comply with Colombian environmental regulations. But Cargill only said that since 2015 it has had no ties with the companies that own the land in Vichada. We tried to contact Matthew Waller from Proterra and officials from Colombia Agro, but got no response.

There is no clarity on the presence and performance of companies like Colombia Agro in the region. Ana Villa says she fears the agribusiness projects have been reactivated, which in the past, and according to reports from Corporinoquia, have caused damage to the natural resources of Cumaribo.

Also, the presence of criminal armed groups in the region has increased over the past year. Several Indigenous and rural communities have reported threats against leaders who defend their rights to own land and have a healthy environment. Even the Ombudsman’s Office, with its early warning system, raised concerns in April 2020 about the increase in criminal armed groups and threats to social leaders in municipalities in Meta and Vichada.

Several neighbors have warned Villa about the dangers of traveling to certain areas. She says she’s become very discreet while traveling to relay community requests to government agencies. “My life has changed a lot since becoming a leader, sometimes for the better and sometimes for the worse. I know that there are many complications such as threats and risks, but I have dedicated myself to the people most in need, to the people who live in the most remote and abandoned territories,” she says.

Despite all this, whenever she is needed, she is willing to travel, if necessary for more than 25 hours. That doesn’t matter to her, she says. She insists on finding solutions that help improve the living conditions of her rural community and of the Indigenous people who trust her work.

This article was first published here on Mongabay’s Latam site on March 16, 2021.

 

by Ginna SantistebanÓscar ParraPilar Puentes on 11 August 2021 | Translated by Romina Castagnino

Army Corps Orders Full Environmental Review of Formosa Plastics’ Controversial Louisiana Plant

Army Corps Orders Full Environmental Review of Formosa Plastics’ Controversial Louisiana Plant

The Center for Biological Diversity
For Immediate Release, August 18, 2021

Contact:
Julie Teel Simmonds, Center for Biological Diversity, (619) 990-2999, jteelsimmonds@biologicaldiversity.org
Sharon Lavigne, RISE St. James, (225) 206-0900, sharonclavigne@gmail.com
Anne Rolfes, Louisiana Bucket Brigade, (504) 452-4909, anne@labucketbrigade.org

Decision Follows Lawsuit, Permit Suspension, Public Pressure

WASHINGTON— The U.S. Army Corps of Engineers announced Wednesday it will require a full “environmental impact statement” for the massive petrochemical complex Formosa Plastics proposes to build in St. James Parish, Louisiana. The decision is a major victory for opponents of the plant, who sued to block the project in January 2020 and convinced the Army Corps to suspend its permit last fall.

Wednesday’s announcement means the Army Corps will now do a complete analysis of the public health, environmental, climate, environmental justice and cultural impacts of what would be one of the world’s biggest plastic-making plants. Plaintiff groups representing the Black and low-income communities affected by the project — from an already polluted industrial corridor known as Cancer Alley or Death Alley — have long said a proper environmental review would show the project should never be built.

“The Army Corps has finally heard our pleas and understands our pain. With God’s help, Formosa Plastics will soon pull out of our community,” said Sharon Lavigne with RISE St. James, who earlier this year was awarded the Goldman Environmental Prize for her work defending her community from petrochemical polluters. “Nobody took it upon themselves to speak for St. James Parish until we started working to stop Formosa Plastics. Now the world is watching this important victory for environmental justice.”

RISE St. James, Louisiana Bucket Brigade and Healthy Gulf were represented in the litigation over this permit by the Center for Biological Diversity. Local opponents of the project have been aggressively dismissedarrested and publicly criticized over their work to stop this project, which received huge taxpayer subsidies from the state.

“Today’s announcement is the ultimate David v. Goliath victory,” said Anne Rolfes, executive director of Louisiana Bucket Brigade. “We were not scared of Formosa Plastics and its $9 billion project, or the fact that our governor has been cheering for Formosa all along. St. James Parish residents are the ones who have shown leadership and wisdom. What the Corps has done today is common sense. Of course one of the biggest plastics plants in the world should require an environmental impact statement. Our state and federal officials should have demanded it from the outset. I am hopeful that this is the nail in the coffin of Formosa Plastics in St. James Parish. And don’t try to build somewhere else. Pack up and go home.”

The proposed facility would emit 13.6 million metric tons of greenhouse gases each year, the equivalent of 3.5 coal-fired power plants. It will also produce 800 tons of toxic air pollutants annually, doubling air emissions in St. James Parish, to produce plastic for single-use packaging and other products. Recent studies have linked exposure to air pollution with higher COVID-19 death rates. It’s one likely factor in the disease’s disproportionate impact on Black Americans.

The lawsuit sought to invalidate Clean Water Act permits issued by the Army Corps in 2019. It asserted that officials violated federal laws in approving the destruction and damage of wetlands, which help protect the region from hurricanes that are intensifying with climate change. The Corps also ignored the water, air, climate, and health impacts of the complex and failed to properly evaluate and protect burial sites of enslaved people discovered on the property.

“This long-overdue review will show the unacceptable harm Formosa Plastics’ massive petrochemical complex would inflict on this community, our waterways, and our climate,” said Julie Teel Simmonds, a senior attorney at the Center. “This terrible project shouldn’t have been rubber-stamped and it should never be built. Climate action and environmental justice mean we have to stop sacrificing communities and a healthy environment just to make throwaway plastic.”

The growing chorus of project opponents includes the United Nations Office of the High Commissioner on Human Rights, which called the project “environmental racism” in March and urged U.S. officials to reject the project.

Formosa Plastics’ massive proposed petrochemical complex would include 10 chemical manufacturing plants and numerous support facilities, spanning 2,500 acres, just one mile from an elementary school. By turning fracked gas into the building blocks for a massive amount of single-use packaging and other wasteful plastic products, the project would worsen climate change and the ocean plastic pollution crisis.

Last year Formosa Plastics agreed to pay a record $50 million in cleanup and restoration costs to settle a civil lawsuit after its Point Comfort plant discharged billions of plastic pellets into Texas waterways over many years. That settlement included a commitment to zero future plastic discharges from the Texas plant — a standard that has not been applied to its plant in Louisiana.

The Center for Biological Diversity is a national, nonprofit conservation organization with more than 1.7 million members and online activists dedicated to the protection of endangered species and wild places.

RISE St. James is a faith-based organization working to protect the land, air, water and health of the people of St. James Parish from the petrochemical industry.

The Louisiana Bucket Brigade collaborates with communities adjacent to petrochemical plants, using grassroots action to create an informed, healthy society and hasten the transition from fossil fuels.

Healthy Gulf is a regional nonprofit whose purpose is to collaborate with and serve communities who love the Gulf of Mexico by providing the research, communications, and coalition-building tools needed to reverse the long pattern of over exploitation of the Gulf’s natural resources.

What is Neoliberalism?

What is Neoliberalism?

This article is from the blog buildingarevolutionarymovement.

This post provides a brief introduction to the current form of capitalism: neoliberalism. It includes sections on: neoliberal ideology; Governmentality – how neoliberalism governs, neoliberal government policies; how neoliberalism is a capitalist class project of domination; the history of neoliberalism in the twentieth century; and the three phase of neoliberalism in government since the 1980s.

Neoliberalism is a form of capitalism and liberalism. Neoliberalism is the most aggressive form of liberalism ever formulated. Liberals generally assume that being a “self-interested, competitive entrepreneur is the natural state for human beings, neoliberals know that it isn’t.” But the neoliberals still want people to behave that way. They achieve this by using the state and corporate power to make us act in that way, regardless of what most people want. [1]

Neoliberal ideology

Ideology can be defined as a set of assumptions about how society does and should work, it structures both what we think and how we act. Our world has competing truths, values, and theories, ideologies aim to favour some values over others and to legitimise certain theories or sets of meanings. Ideologies provide intellectual maps of the social world that establish relationships between individuals and groups versus the larger structure of power. They therefore play an essential role in maintaining the current power structure as fair and natural, or in challenging it by highlighting its injustices and pointing out the benefits of alternative power structures. [2] An ideology is most effectively when it denies its own existence and can pass itself off as the normal state of things or ‘common sense’ [3]

Jeremy Gilbert describes how it is difficult to differentiate between capitalism and neoliberalism:

“because neoliberalism is the most fanatically pro-capitalist ideology ever, and because it has become the default ideology of almost all actual capitalists, and certainly of almost all pro-capitalist political parties..it is important to differentiate between capitalism and neoliberalism because they are not the same thing – they are not the same KIND of thing. Capitalism is an economic practice. Neoliberalism is a philosophy about how societies in which that practice prevails should be managed, and a programme which is at least nominally informed that philosophy, or looks like it is.” [4]

Neoliberal ideology can be summarised as “a single global marketplace to the public, they portray globalizing markets in a positive light as an indispensable tool for the realization of a better world. Such market visions of globalization pervade public opinion and political choices in many parts of the world. Indeed, neoliberal decision-makers function as expert designers of an attractive ideological container for their market-friendly political agenda. Their ideological claims are laced with references to global economic interdependence rooted in the principles of free-market capitalism: global trade and financial markets, worldwide flows of goods, services, and labour, transnational corporations, offshore financial centres, and so on.” [5]

George Monbiot describes the ideology of neoliberalism as:

“Neoliberalism sees competition as the defining characteristic of human relations. It redefines citizens as consumers, whose democratic choices are best exercised by buying and selling, a process that rewards merit and punishes inefficiency. It maintains that “the market” delivers benefits that could never be achieved by planning. Attempts to limit competition are treated as inimical to liberty. Tax and regulation should be minimised, public services should be privatised. The organisation of labour and collective bargaining by trade unions are portrayed as market distortions that impede the formation of a natural hierarchy of winners and losers. Inequality is recast as virtuous: a reward for utility and a generator of wealth, which trickles down to enrich everyone. Efforts to create a more equal society are both counterproductive and morally corrosive. The market ensures that everyone gets what they deserve. We internalise and reproduce its creeds. The rich persuade themselves that they acquired their wealth through merit, ignoring the advantages – such as education, inheritance and class – that may have helped to secure it. The poor begin to blame themselves for their failures, even when they can do little to change their circumstances.” [6]

Meritocracy is a key feature of neoliberal ideology. This promotes a “hierarchical and highly unequal set of social relations while claiming to offer individuals from all backgrounds an equal chance to compete for elite status.” [7] This is good propaganda for neoliberalism, but in fact social equality and social mobility have decreased since the 1970s. [8]

Mark Fisher describes the ‘capitalist realism’ of neoliberalism as: “that it is easier to imagine the end of the world than it is to imagine the end of capitalism…the widespread sense that not only is capitalism the only viable political and economic system, but also that it is now impossible even to imagine a coherent alternative to it.” [9]

Governmentality

A second dimension on neoliberalism is what the French philosopher Michel Foucault called ‘Governmentality’:

“certain modes of governance based on particular premises, logics, and power relations. A neoliberal governmentality is rooted in entrepreneurial values such as competitiveness, self-interest, and decentralization. It celebrates individual empowerment and the devolution of central state power to smaller localized units. Such a neoliberal mode of governance adopts the self-regulating free market as the model for proper government. Rather than operating along more traditional lines of pursuing the public good (rather than profits) by enhancing civil society and social justice, neoliberals call for the employment of governmental technologies that are taken from the world of business and commerce: mandatory development of ‘strategic plans’ and ‘risk-management’ schemes oriented toward the creation of ‘surpluses’; cost–benefit analyses and other efficiency calculations; the shrinking of political governance (so-called ‘best-practice governance’); the setting of quantitative targets; the close monitoring of outcomes; the creation of highly individualized, performance-based work plans; and the introduction of ‘rational choice’ models that internalize and thus normalize market-oriented behaviour. Neoliberal modes of governance encourage the transformation of bureaucratic mentalities into entrepreneurial identities where government workers see themselves no longer as public servants and guardians of a qualitatively defined ‘public good’ but as self-interested actors responsible to the market and contributing to the monetary success of slimmed-down state ‘enterprises’. In the early 1980s, a novel model of public administration known as ‘new public management’ took the world’s state bureaucracies by storm. Operationalizing the neoliberal mode of governance for public servants, it redefined citizens as ‘customers’ or ‘clients’ and encouraged administrators to cultivate an ‘entrepreneurial spirit’. If private enterprises must nurture innovation and enhance productivity in order to survive in the competitive marketplace, why shouldn’t government workers embrace neoliberal ideals to improve the public sector?” [10]

Cultural theorist Mark Fisher describes the ‘bureaucratic managerialism’ of neoliberalism. Bureaucracy has been decentralised so that we actively produce it ourselves through “continuing professional development, performance reviews, log books, not to mention the whole machine of the Research Excellence Framework (REF).” Workers are encouraged to be highly self critical, but are assured that there will not be any consequences from this self criticism. The demonising nature of having to self criticise, that will then be ignored. Assessments at work have changed from periodic to continuous: “Our status is never fully ratified; it is always up for review.” [11]

A set of government policies

Jeremy Gilbert describes the main aim of neoliberal government programmes as being the promotion of the interests of finance capital and the processes of financialisation  above all other interests. [12] He lists neoliberalism’s policy agenda or ‘actually existing neoliberal’ as:

  • privatising public services
  • deregulating labour markets so workers have fewer rights and protections
  • attacking labour unions
  • cutting taxes on the rich
  • reducing public spending and welfare entitlements
  • forcing services in the public sector to behave, as much as possible, like competitive, profit-seeking business. [13]

Capitalist class project

Neoliberalism can be described as a project of the capitalist class to restore their own class power, following their loss of power through the middle of the twentieth century, during the Keynesian period of high public spending and a strong welfare state. There has also been a recomposition of the capitalist class, with finance capital now dominating over all other sectors. [14]

Neoliberalism can also be seen as a reaction by capitalist elites to the increase in democratic demands in the 1960s. This was followed by a crisis in the 1970s between the capitalists and labour movement. The neoliberal response to was to offer increased private consumption and easily accessible credit, which “re-asserted the supremacy of finance capital over both industrial capital and the rest of the population for the first time since the great crash of 1929”. [15]

At this point of crisis in the 1970s, the neoliberals had two ‘revolutionary goals’ to restore the profitability of capitalism. The first was to “re-organize capitalism on a universal, transnational scale and thus place global markets out of reach of the influence of national governments, making markets less subject to national-scale popular democratic demands and freeing corporations to exploit labor and the environment at will.” The second was to “apply global economics in a ‘race to the bottom’ competition between nations, creating ‘austerity societies’ of disempowered consumers at the expense of social groups and their ‘market-distorting’ demands. The formation of the World Trade Organization in 1995 capped-off this revolutionary process of transferring economic power from nations—which ostensibly could be controlled democratically—to the much-less accountable global level.” [16]

A key function of neoliberal ideology is to “secure consent and generate political inertia precisely by enabling the experience of precarity and individualised impotence to be experienced as normal and inevitable.” Only a small number of people support neoliberal policies, namely the core neoliberal elite. For everyone else, neoliberal ideology aims “to console us that the sense of insecurity, of perpetual competition and individual isolation produced by neoliberal government is natural, because ‘that’s what life is really like’.” [17] Most people do not support neoliberalism, but as long as there is no viable alternative that wins broad popular support, then this results in a general ‘disaffected consent’ with the current system. [18]

In neoliberalism, capitalists have worked out the sweet spot to stop any serious challenge to their dominance: “as long as feeding one’s children (still the principal preoccupation of most adult humans, as it has been throughout history and before) remains an achievable but difficult task, then energies are likely to be devoted to the accomplishment of that goal: energies which cannot then be channelled into political activity of any kind. Where this objective becomes unachievable, populations are likely to resort to desperate, perhaps revolutionary, measures. Where it becomes too easily realised – as it did for the generation which came to maturity in the post-war years of social-democratic ascendancy – then capitalism is also likely to find itself subject to challenge by constituencies no longer intimidated by the immediate threat of destitution. Much of the neoliberal programme can be understood in terms of the efficacy and precision with which it engineers precisely the outcome of an economy and a society within which feeding their children and keeping them out of relative poverty remains an achievable but highly demanding task for most actors: actively producing insecurity and ‘precarity’ across the working population, without allowing the level of widespread desperation to pass critical thresholds. [19]

The making of neoliberalism

George Monbiot provides a good summary of the history of neoliberalism:

“The term neoliberalism was coined at a meeting in Paris in 1938. Ludwig von Mises and Friedrich Hayek saw social democracy, exemplified by Franklin Roosevelt’s New Deal and the gradual development of Britain’s welfare state, as manifestations of a collectivism that occupied the same spectrum as nazism and communism. In 1944 Hayek argued that government planning, by crushing individualism, would lead inexorably to totalitarian control. It came to the attention of some very wealthy people, who saw in the philosophy an opportunity to free themselves from regulation and tax. When, in 1947, Hayek founded the first organisation that would spread the doctrine of neoliberalism – the Mont Pelerin Society – it was supported financially by millionaires and their foundations. They created a transatlantic network of academics, businessmen, journalists and activists. The movement’s rich backers funded a series of thinktanks which would refine and promote the ideology. They also financed academic positions and departments, particularly at the universities of Chicago and Virginia.

As it evolved, neoliberalism became more strident. Hayek’s view that governments should regulate competition to prevent monopolies from forming gave way – among American apostles such as Milton Friedman – to the belief that monopoly power could be seen as a reward for efficiency. The neolibers stopped using the name for their ideology ‘neoliberalism’ in the 1950s.

In the post war period neoliberalism remained at the margins, despite its lavish funding. The postwar consensus was almost universal: John Maynard Keynes’s economic prescriptions were widely applied, full employment and the relief of poverty were common goals in the US and much of western Europe, top rates of tax were high, and governments sought social outcomes without embarrassment, developing new public services and safety nets. But in the 1970s, when Keynesian policies began to fall apart and economic crises struck on both sides of the Atlantic, neoliberal ideas began to enter the mainstream. As Friedman remarked, “when the time came that you had to change … there was an alternative ready there to be picked up”. With the help of sympathetic journalists and political advisers, elements of neoliberalism, especially its prescriptions for monetary policy, were adopted by Jimmy Carter’s administration in the US and Jim Callaghan’s government in Britain. After Margaret Thatcher and Ronald Reagan took power, the rest of the package soon followed: massive tax cuts for the rich, the crushing of trade unions, deregulation, privatisation, outsourcing and competition in public services. Through the IMF, the World Bank, the Maastricht treaty and the World Trade Organisation, neoliberal policies were imposed – often without democratic consent – on much of the world.” [20]

Phases of neoliberalism

There are a number of different perspectives on the phases of neoliberalism. [21] I believe there have been three phases of neoliberalism in government:

  1. First-wave neoliberalism in the 1980s: Reaganomics and Thatcherism

The ‘New Right’ of Thatcher and Reagan in the US and UK implemented a basic neoliberal economic programme with a range of conservative social policies such as restoring traditional family values, increased military spending, a tough law and order agenda, and limiting multiculturalism. [22]

  1. Second-wave neoliberalism in the 1990s: Clinton’s and Blair’s Third Way

The Blair and Clinton governments in the 1990s took a more centrist approach, that included the majority of neoliberalism combined with socially progressive policies. The governments supported private-sector-led economic growth, combined with the government providing a consistent level of social services to citizens. They also promoted equality for gay people and supported women in the labour market. [22]

  1. The third phase of neoliberalism began with bailing out the banks following the 2008 financial crisis. This was followed by austerity – massive cuts to public services. Inequality has increased, life expectancy has declined or stagnated, living standards have dropped. All this has polarised politics with the election of authoritarian, right-wing, isolationist politicians.

Endnotes

  1. Twenty-First Century Socialism, Jeremy Gilbert, 2020, page 27-8
  2. https://buildingarevolutionarymovement.org/2019/02/25/political-ideology-part-1/
  3. What Kind of Thing is ‘Neoliberalism’? in New Formations, Jeremy Gilbert, 2013, page 12, https://www.lwbooks.co.uk/new-formations/80-81/what-kind-thing-neoliberalism
  4. https://jeremygilbertwriting.wordpress.com/2015/07/14/neoliberalism-and-capitalism-whats-the-difference/
  5. Neoliberalism: A Very Short Introduction, Manfred B. Steger, 2010, page 11-12
  6. https://www.theguardian.com/books/2016/apr/15/neoliberalism-ideology-problem-george-monbiot
  7. What Kind of Thing is ‘Neoliberalism’? Page 15. Also see Meritocracy as Plutocracy: the Marketising of Equality under Neoliberalism, Jo Littler, 2013 https://www.lwbooks.co.uk/new-formations/80-81/meritocracy-plutocracy-marketising-equality-under-neoliberalism. And Against Meritocracy, Jo Littler, 2017
  8. What Kind of Thing is ‘Neoliberalism’? Page 22
  9. Capitalist Realism: Is There No Alternative Mark Fisher, 2009, page 2 and a summary https://videomole.tv/events/mark-fisher-capitalist-realism-part-2/. Also see Capitalist Realism, Neoliberal Hegemony: A Dialogue, in New Formations, Mark Fisher and Jeremy Gilbert, 2013, https://www.lwbooks.co.uk/new-formations/80-81/capitalist-realism-neoliberal-hegemony-dialogue
  10. Neoliberalism: A Very Short Introduction, page 12-14
  11. Capitalist Realism, Neoliberal Hegemony: A Dialogue, in New Formations page 91
  12. What Kind of Thing is ‘Neoliberalism’? Page 17
  13. Twenty-First Century Socialism page 28-9. Also see A Brief History of Neoliberalism, David Harvey, 2007
  14. What Kind of Thing is ‘Neoliberalism’? Page 16. Also see A Brief History of Neoliberalism
  15. Neoliberal Europe section of http://nearfuturesonline.org/corbynism-and-its-futures/#en-70-10
  16. https://www.opendemocracy.net/en/transformation/revolution-that-will-not-die/
  17. What Kind of Thing is ‘Neoliberalism’? Page 15
  18. What Kind of Thing is ‘Neoliberalism’? Page 18-19
  19. What Kind of Thing is ‘Neoliberalism’? Page 14. Also 28 minutes into https://culturepowerpolitics.org/2016/06/08/how-did-we-get-here-radical-histories-of-the-uk-1974-88/
  20. https://www.theguardian.com/books/2016/apr/15/neoliberalism-ideology-problem-george-monbiot
  21. https://culturepowerpolitics.org/2015/05/20/session-one-neoliberal-common-sense/https://medium.com/@efblake/the-corporatocracy-and-three-waves-of-neo-liberalism-e0eb2f5afc6b; A Brief History of Neoliberalism, Neoliberalism; A Very Short Introduction chapters 2 and 3; The Handbook of Neoliberalism, Simon Springer , Kean Birch , et al., 2016; https://newleftreview.org/issues/II101/articles/william-davies-the-new-neoliberalism; Neoliberalism in Context: Governance, Subjectivity and Knowledge, Simon Dawes (Editor), Marc Lenormand (Editor), 2020; Third-Wave Neoliberalism in Theory and Practice: A Case Study of the Halifax Centre Plan, Sandy Mackay, 2016, http://theoryandpractice.planning.dal.ca/_pdf/multiple_plans/smackay_2016.pdf
  22. https://culturepowerpolitics.org/2015/05/20/session-one-neoliberal-common-sense/