Showing posts with label capitalism and democracy. Show all posts
Showing posts with label capitalism and democracy. Show all posts

28 October 2009

Experimental "competitive government" instead of democracy

Until recently, the term "competitive government" has been used to refer to competing policies with regard to democratic institutional arrangements and to the (neo-liberal) introduction of (market-)competitive elements to public administration, such as the privatization and outsourcing of public services (provision of water and electricity, waste disposal, public transportation, health care, etc.), public-private partnerships, and so on.

The term now is about to receive a new meaning thanks to the work of Patri Friedman and others. For them, "competitive government" describes the competition between the political arrangements of entire (future) nation states, be they democratic or otherwise. It is about the freedom of people to decide themselves in what political system they prefer to live and the freedom for every individual to move to a "nation" state/country of his or her choosing. It is about diversity in the forms of government worldwide rather than the uniformity of international "democracy promotion".

For a number of reasons the term "competitive government" may not be ideal, though, for what Friedman and others envisage. After all, unlike today there would be no real competition between such (new) nation states/countries. (Traditionally, competition between national governments and nations too often ends in war.) It's not about dominance, but rather about co-existence and tolerance for other, alternative, diverse forms of government, even "niche" government (political systems that only a minority of people would volunteer to live in). In a competition-theoretical sense, "competitive government" means, however: no monopoly for democracy.

At the same time, the "nation" would have to lose any connotation of blood, ethnicity, and nationalism and come to stand for communities of politically like-minded people instead.

It is safe to say that Friedman is stuck in the terminology of Economics ("competition" rather than accommodation or tolerance, "nation" as the basic entity of political-economic discourse – western democracy promotion suffers from the same competitive misapprehension, inherent in its linkage to capitalist market philosophy and mechanisms).

In Patri Friedman's case this is owed to his family heritage and background. His grandfather, Milton Friedman, 1976 Nobel Prize laureate in Economics, was one of the professors who turned the University of Chicago into a centre of so-called neo-liberal thought. The author of books such as "Capitalism and Freedom" (1962), Milton Friedman was a stout defender of the view that capitalism and democracy are inextricably linked.

Albeit deeply critical of the (welfare) state and pleading for a government that refrains from interventions in the economy, limits its activities to the bare minimum, and leaves the individual as much as possible alone, he still charged the state with the promotion of competition and the provision of a legal and monetary framework for individual and corporate action, primarily in the market place.

Political power should be dispersed as widely as possible, though, so as to avoid coercion of the individual by his fellow men. Dismissing "welfare" and "equality" as the "catchwords" of paternalistic politics against which classical liberalism fought, Milton Friedman held democracy to be merely a means guaranteeing individual freedom.

Now his grandson, Patri Friedman, declares his opposition to democracy.

Taking his clues from his grandfather and father (David D. Friedman) as much as from the libertarian and anarcho-capitalist traditions, Patri Friedman goes further when claiming – on the most elaborate of his many fragmentary websites and blogs – that he is "deeply dissatisfied with current forms of social organization (western democracy)".

http://patrifriedman.com/aboutme/politics.html

He finds "[s]ocial organization (aka government) [...] is being done really badly right now (democracy is better than previous forms, but still awful), and it can be done better. [...] I think most political discussion is [...] nonsensical reasoning about a useless tradition which has accumulated concentrated interests who benefit from it and have entrenched themselves [...]. By stepping up a level, we neatly avoid getting trapped in endless policy debates, debates which are almost pure intellectual masturbation because the problem is not figuring out a good policy, the problem is that the system (say, democracy) doesn't optimize for 'good'. We can argue for hours about the best tax system – but politicians don't want 'the best', they want one where they can profit by selling loopholes."

The solution Patri Friedman proposes is "competitive government" – and the creation of new spaces in which various forms of government and institutional arrangements (some of them non- or anti-democratic) can develop in their own "nation" states/countries. While people (unless they live in some form of democracy) may no longer get to elect their leaders, they would get to decide under what system of government they wish to live – and move there.

Friedman writes: "My path is not just a path to libertarianism, but to a wider variety of governments and societies. I wish to convince non-libertarians that this is an attractive vision, and that it is something they would like to see happen. I also want to help people of many different political persuasions to get along by seeing ways in which each group can have what they want, instead of arguing endlessly over what they should all have."

The way of getting there, according to him, is experimentation: "Government has stagnated. Very little experimentation. (What do you expect when it's basically impossible to start a new country or change an existing one? How do you expect to get technological advances without experimentation?) [...] Experimenting has some important benefits: It gives us empirical evidence about what rule-systems work. This is enormously more valuable than theoretical debates which depend on model assumptions; It enables people to live under a system while learning about it; It gives people a specific, real example to point to when debating the merits of various systems; They let people actually experience a society, physically and emotionally rather than as a mental abstraction. [...]

"The fewer, larger political systems we have, the less experimentation there will be. Also, the less different types of society we will have. I believe that a world with a diverse set of governments, peacefully competing for citizens, would be a much better one. We might see the technologies of social organization advancing as fast as other areas of science and technology."

Patri Friedman recognizes the difficulty of experimenting with political systems in existing nation states/countries. Much like the Zionists at the beginning of the twentieth century, he aims to solve this problem by creating new nations. (One of the blogs he writes on is entitled "Let A Thousand Nations Bloom".) He proposes to "open the new frontier of the oceans", because international waters provide "a very low barrier to entry to creating a new government, and avoid the powers-that-be". " By building cities on the ocean in a modular fashion, the ocean becomes a permanent frontier, because any dissatisfied group can go to a new, empty patch of ocean, and take their houses and offices with them!. This lets them reset at far lower cost."

"And if we build these cities out of modular platforms, so that people can vote with their house (instead of just their feet), we get a world of unprecendented mobility (ie free association). Together, these have the potential to transform the governing industry from an oligopoly into a competitive market."

Patri Friedman calls this "seasteading". He even founded his own organization, the Seadsteading Institute in Palo Alto, California, whose mission statement reads: "To further the establishment and growth of permanent, autonomous ocean communities, enabling innovation with new political and social systems". It may be the first serious project in the direction of "competitive government" since it received a financial contribution of half a million US dollars from billionaire Peter Thiel, co-founder of PayPal.

www.seasteading.org

Questions remain, of course, like on what basis people are supposed to come together to form a new "nation"/country/community if they do not before have an abstract idea, model, conception of a future society all of them aspire to?

Like anarchist, capitalist libertarians, others too will have to find ways of conceptualizing such non- or anti-democratic societies first, and then put their ideas into practice and to the test in existing or new states, while never ceasing to experiment.

Patri's own libertarian project (which attracted the Silicon Valley start-up funding for his Seasteading Institute) suffers from his erring belief that capitalism can durably be separated from democracy. As his grandfather, Milton, knew full well a capitalist economy will (in the long run) always lead to democratic forms of government – and thus the same old problems.

New forms of government will not be democratic. They will not be capitalist either.

To build a swimming country will always require a lot of money. New non-democratic, non-capitalist societies are therefore unlikely to arise on the high seas. But arise they will.

07 October 2009

A positive agenda for anti-democratic thought

In my book "Anti-Democratic Thought" I first laid out what I like to call "a positive agenda for anti-democratic thought":

In a historical and cross-cultural perspective the fact cannot be denied that most democracies failed. Many formerly democratic countries do not have a democratic government now. Many countries have never known democracy. Only western democracies for a short while – maybe to be dated from the fall of Soviet communism to the rise of radical Islam – believed themselves invincible. It may therefore seem expedient to think about political alternatives once more and to study threats to democracy from within and without as well as common modes of failure of democracy across times and cultures.

Will people's disillusion with democratic practices (such as the impact money has on campaigning), mass politics, and the equal inconsequence of everyone's vote ultimately terminate democracy?

I do not believe that all political systems have been tried yet. Our world is changing rapidly. Will the technological innovations of recent decades, and those to come, make possible political forms that never existed (nor could be imagined) in history – or will we have to fall back, post democracy, into the abyss of authoritarian despotism, as envisaged by Plato and Aristotle?

Oswald Spengler said that money would finally lose its value, its meaning, and politics would reclaim its rightful place.

That is the challenge of our time: reclaiming politics.

My book marks the beginning of a daring new debate. It is not satisfied with studying the historical dimensions of anti-democratic thought – as were so many of our predecessors –, but wishes to study its future too.

The (re-)introduction that opens the volume approaches anti-democratic thought from an angle different from that of earlier authors. Rather than focusing on discourse analysis and similarities in the arguments advanced by various strands of anti-democratic thought, the focus here lies on anti-egalitarianism and the underlying causes that led individuals to thinking and taking up arguments against democracy in the first place.

These reasons have not changed.

Exceptional men and women still are dissatisfied with democracy and the rule of everyone-else over the individual and unwilling to accept at face value the old tendentious and partisan adage that, despite its admitted shortcomings, no better political system is imaginable.

There are many difficulties in trying to make valid statements about anti-democratic thought. That should not stop us. We have to navigate the difficulty that anti-democratic thinkers may contradict each other. So too do democratic thinkers. Anti-democratic thought as much as democracy theory is not a coherent body of work. We need to understand the context in which anti-democratic thought arose and arises. Anti-democratic thought resulting from support for alternative political systems should be kept separate from anti-democratic thought directed against more fundamental principles of democracy, such as equality.

Anti-democratic thought can be – must be – re-invented as a positive project for the twenty-first century. In doing so, we need to avoid making claims that are obviously wrong. To distinguish ourselves from earlier polemical attacks on democracy, we need to phrase each word, each sentence, our whole argument carefully and in a manner that is simple and straightforward and cannot easily be refuted. We need to submit anti-democratic polemics, plays and novels to academic study and turn what we find into scientific knowledge and political resources.

Much nineteenth- and early twentieth-century anti-democratic thought suffered from unfamiliarity with the practical workings of democracy. Criticism was often unsophisticated, repetitive and superficial. It will be the challenge of twenty-first-century anti-democratic thought to criticize democracy, with hindsight, in a more sophisticated manner, to develop and formulate more subtle expressions of anti-democratic thought, to move away from cheap stereotypes and become as analytical and diverse as pro-democratic thought. Different traditions and strands of anti-democratic thought must be allowed to compete freely with each other and with democracy. Intellectuals need to lose the unjustified prejudice in favour of democracy – now just as unjustified as the largely prejudicial anti-democratic thought two-hundred years ago.

We need to confront those who call "anti-democratic" everything they don't like about democracy, and whatever kind of social and political thought they do not understand or approve of, by giving anti-democratic thought clearer contours and new substance.

Anti-democratic thought is no longer to be treated as an inconsequential appendage to democracy theory. University and college courses on "Democracy and Its Critics", may their teachers be in favour or critical of democracy, will benefit from the serious discussion of anti-democratic thought on offer in my book, more than from any apology of democracy.

For more on the history and background of anti-democratic thought and why to study anti-democratic thought and think anti-democratically today, see my chapter "Re-Introducing Anti-Democratic Thought", which is available here:

books.google.com/books?printsec=frontcover&id=KkMdJtaaeOYC#PPA1,M1

17 September 2009

Arundhati Roy turns on democracy

Even renowned Indian novelist and anti-globalization activist Arundhati Roy has come to perceive "The Dark Side of Democracy" – so the title of a text in her most recent collection of previously published essays, "Listening to Grasshoppers: Field Notes on Democracy" (Penguin, Hamish Hamilton, 2009):

www.penguin.co.uk/nf/Book/BookDisplay/0,,9780241144626,00.html

The book is described by its publisher as looking "closely at how religious majoritarianism, cultural nationalism and neo-fascism simmer just under the surface of a country [India] that projects itself as the world's largest democracy", but is now being turned "into a police state", threatening its "precarious democracy" and sending "shockwaves through the region and beyond".

An adapted version of her introduction to the book was published under the title "Democracy's Failing Light" in Outlook India magazine:

www.outlookindia.com/article.aspx?250418

She has since used this introductory essay as her opening speech at the ninth International Literature Festival in Berlin, Germany (September 2009), thus indicating that her critical thoughts on democracy address a global rather than merely an Indian audience.

Polemically, Roy asks: "Is there life after democracy?", once it "has been used up? When it has been hollowed out and emptied of meaning? What happens when each of its institutions has metastasised into something dangerous? What happens now that democracy and the Free Market have fused into a single predatory organism with a thin, constricted imagination that resolves almost entirely around the idea of maximising profit? [...] Could it be that democracy, the sacred answer to our short-term hopes and prayers, the protector of our individual freedoms and nurturer of our avaricious dreams, will turn out to be the endgame for the human race?"

Democracy, according to Roy, "can perhaps no longer be relied upon to deliver the justice and stability we once dreamed it would". Her collected essays, some new, some dating back to the turn of the millennium, are "not about unfortunate anomalies or aberrations in the democratic process. They're about the consequences of and the corollaries to democracy; they're about the fire in the ducts".

India's parties spent two billion dollars on the 2009 general elections. "That's a lot more than the budget of the US elections. According to some media reports the actual amount spent is closer to ten billion dollars. Where, might one ask, does that kind of money come from? [...] Clearly, without sponsorship it's hard to win an election. And independent candidates cannot promise subsidised rice, free TVs and cash-for-votes, those demeaning acts of vulgar charity that elections have been reduced to".

German media reported Roy's Berlin speech (the German translation of her essay) as depicting democracy-that-is, in India and elsewhere, as a milder form of civil war.

12 September 2009

Book: Democracy Kills

A welcome contribution to the commencing debate on anti-democratic thought: On 4 September 2009, Pan Macmillan published the new book by veteran BBC foreign correspondent, Humphrey Hawksley, bearing the suggestive title "Democracy Kills: What's So Good About Having the Vote?".

Pan Macmillan promotes the book as "[a] compelling and thought-provoking examination of the dangers of democracy":

www.panmacmillan.com/titles/displayPage.asp?PageTitle=Individual%20Title&BookID=419097

Their description: For many years western governments have insisted that the only way to achieve long-term prosperity and political stability is through a combination of free-market economics and democratic government. Yet, all evidence now indicates that this argument is both flawed and can also be the direct cause of war, disease, and poverty. From Pakistan to Zimbabwe, from the Palestinian territories to the former Yugoslavia, from Georgia to Haiti attempts to install democracy through elections have produced high levels of corruption and violence. Parliaments represent not broad constituencies but vested interests and, amid much fanfare, constitutions are written, but rarely upheld. Humphrey Hawksley has reported economic and political trends throughout the world for more than twenty years. In "Democracy Kills", he offers a vivid – and frequently devastating – analysis of our devotion to democracy.

There is of course a simple reason why Hawksley, as he writes on his blog, experienced "overwhelming support" when launching the book at the Edinburgh Literary Festival last month – and this from "a highly-intelligent, thoughtful, liberal audience". The cases he discusses in the book are far away. It is easy to agree that democratization had devastating consequences in places like Latin America, Africa, and Asia. Unlike myself, Hawksley appears still to favour democracy when it comes to the West. The argument he says "no-one disagreed with" remains thus theoretical to most people. They are not asked to take a stance.

In an early review of the book, Gerard DeGroot (Professor of Modern History at the University of St Andrews) concedes in this vein that
"[w]hile democracy seems in theory admirable, too often its hasty implementation brings bloodshed, poverty, disease and death". In the Ivory Coast, for example, "[a] succession of weak governments [left] the country open to free-market exploitation by rapacious chocolate producers. Adults now have the vote, but their children are often slaves", harvesting cocoa.

Only in developing countries, according to that line of thought, "the people often lack the experience to behave like full-fledged democrats. The result is either chronic political instability or, worse, elected autocracies. [...] The argument brings to mind the colonial era when self-determination was perpetually denied on grounds that the natives were not ready. Today, the politically correct attitude is to assume that all people are capable of being good democrats, or at least should be allowed to make their own mistakes. Yet democracy is much more than an ideology worthy of adoption simply because it is noble. It is, in truth, a culture – one that took centuries to take root in Europe. The idea that it can be quickly transplanted in places where the soil is rocky and the climate harsh is simply naïve".

Concluding his discussion, DeGroot relates "the experience of Usama Rehda, an Iraqi citizen for whom democratic change has meant poverty, corruption and the constant threat of car bombs. 'You know what they say [... .] Be nice to the Americans or they'll punish you with democracy.'"

22 April 2009

CFP: Democracy's Linkage to Capitalism

Please circulate widely! Blog about it! etc.

Call for papers: “Democracy's Linkage to Capitalism”

Fourth Annual International Symposium of the Sussex Centre for the Individual and Society (SCIS), 7-9 September 2009, in Geneva, Switzerland

For decades, scholars have been describing the period we live in as “late capitalism”. Why then have so many people been surprised that capitalism could indeed fall into a global crisis? And how do we explain the silence of the political left in the face of that crisis of the despised capitalist order? Besides the academic self-assertion of a few leftist scholars and publicists that had already given up on the revolution, there appears to be no organized political movement (anywhere) that seeks to overthrow capitalism now that it is weak. Anti- and alter-globalization movements and protests (most recently observed at the Nato and G20 summits) are smaller now than they were ten years ago. New scholarship is scarce on the failure of (neo-)liberal political-economic theories and the “science” of Economics.

The reason for all this, I propose, is that we are only too aware that any fundamental criticism of capitalism in the current situation would also imply a fundamental critique of democracy. As we all know, it is democratic nation states that keep capitalism alive now. Never before has it been so obvious that democracy is intrinsically linked to capitalism. No one dares to point it out: whoever wants to fight capitalism now must be prepared to fight democracy as well.

I argued this first in 2004 in my paper “Fighting Capitalism and Democracy”:

books.google.com/books?printsec=frontcover&id=KkMdJtaaeOYC#PPA187,M1

A summary of which is to be found here:

www.erichkofmel.blogspot.com/2009/04/fighting-capitalism-and-democracy.html

Why don't people dare to criticize democracy? While capitalism has been in crises before (though arguably not of such global dimensions), it is the first time that there exists no obvious alternative to capitalism and democracy. At the time of the last crises, socialism/communism or even fascism seemed viable political options. They are not anymore, and no new alternatives have arisen. China has become capitalist, and so has Russia. All criticisms of democracy available to us hail from a time when democracy had not been consolidated yet, in most countries. All this results in empty gestures of (journalistic) criticism of capitalism, without political content or demands.

On this, see my book “Anti-Democratic Thought”:

books.google.com/books?printsec=frontcover&id=KkMdJtaaeOYC

None of this should stop us from using the moment to further investigate the intrinsic linkage of democracy to capitalism. Papers on this and related themes are invited from affiliated and non-affiliated scholars of any discipline or background. Papers may be theoretical and/or empirical in nature.

Deadline for proposals is 30 June 2009, but later submissions may be accepted. Earlier submission is strongly encouraged and proposals may be accepted as they come in. Please send your proposal to: e.kofmel@scis-calibrate.org

SCIS Symposia are small interdisciplinary workshop-style events with 15-20 participants. Each paper is allocated about an hour for presentation and discussion. Previous SCIS Symposia took place at the University of Sussex and the Institute of Development Studies, Brighton, England (2006); University of Pisa and Hotel Santa Croce in Fossabanda, Pisa, Italy (2007); and Sciences Po/The Institute for Political Studies in Paris, France (2008). Keynote speakers included full professors from the Kennedy School of Government at Harvard; Duke University; King's College London/British House of Lords; etc.

As always, no fees will be charged for participation in this Symposium, and no funding is available for participants' travel and accommodation cost. We will be glad to issue letters of invitation on request though to assist participants with applications to their usual sources of funding. All participants are responsible to make their own travel and accommodation arrangements. The Symposium starts Monday afternoon and ends Wednesday at lunchtime.

Because we expect that particularly doctoral candidates and young researchers may experience problems obtaining funding for travel in the current economic situation, we will also accept tabled papers (i.e. authors do not need to be present personally; their full papers will be circulated among all participants prior to the Symposium). If in such a case you would like to make a video of your presentation, it can be shown to participants during the Symposium. If not stated otherwise, we will assume that proposed papers are to be presented in person in Geneva.

Erich Kofmel
Managing Director
Sussex Centre for the Individual and Society (SCIS)
http://www.scis-calibrate.org/

Postal address:
Sussex Centre for the Individual and Society
1200 Geneva
Switzerland

SCIS is an international association under Swiss law.

15 April 2009

Fighting capitalism and democracy (summarily)

“What has been, that will be; what has been done, that will be done. Nothing is new under the sun.” – Qoheleth 1:9

The concluding paper in my volume “Anti-Democratic Thought”, entitled “Fighting Capitalism and Democracy”, was written in 2004, long before the global financial crisis set in. Surveying various bodies of theory and research (historical and empirical evidence, liberal and modernization theory, among them), the paper argues that democracy and capitalism are inextricably linked – and goes on to ask what this means for a politics of resistance.

The paper finds that capitalism can exist (for a lengthy period of time) without needing or leading to democracy. (Ultimately, though, every form of capitalism will lead to some form of democracy.) Democracy, on the other hand, cannot exist without capitalism. (The few cases in which democracy survived in not-yet-capitalist circumstances only confirm that rule – the reasons for the survival of democracy lie in circumstances outside the democracy-capitalism nexus.)

I didn't need the global financial crisis to realize this. However, the financial crisis most certainly has confirmed all my findings in that much earlier paper. Democratic governments everywhere have found it necessary to stabilize the capitalist economic system(s) without which these democracies would fail immediately. (Due, for example, to popular uprisings caused by economic distress of the population.)

My paper comes to some conclusions. If the basic assumptions of the paper have been reinforced by the financial crisis, so must have been the conclusions drawn from the linkage between capitalism and democracy: whoever wants to fight capitalism (like Islamist terrorists or the anti- and alter-globalization protesters we observed most recently at the Nato and G20 summits) must be prepared to fight democracy as well.

Here a summary of the argument:

Since the 1950s, political scientists, historians, sociologists, and economists have been attempting to prove scientifically common sense observations about an inherent linkage between capitalism and democracy (“Any causal glance at the world will show that poor countries tend to have authoritarian regimes, and wealthy countries democratic ones”: Przeworski et al.: Democracy and Development).

They built upon arguments presented in the literature that emerged in the wake of the Second World War and the independence of former colonies on the economic development of so-called underdeveloped or developing countries. Soon this body of literature led to the academic discipline of development studies and a scientific theory of development, usually called “modernization theory”, which was of major influence in the 1950s and 60s and again, along with neo-liberalism, in the 1980s and 90s.

While many of the early authors of modernization theory were only concerned with the economic side of capitalist development, others such as Seymour Martin Lipset (1959 in his article Some Social Requisites of Democracy) assumed that economic development – capitalism –, would lead to political development – democracy.

One year earlier than Lipset, in an often cited non-empirical study (The Passing of Traditional Society), Daniel Lerner had already proposed a causal sequence of urbanization leading to literacy and media growth, which in turn would lead to the development of institutions of participatory politics. Karl de Schweinitz (Industrialization and Democracy) went on to claim that the process of causation runs from industrialization to political democracy and he linked this to people being “disciplined to the requirements of the industrial order” and therefore more willing to resolve conflicts, arising for example from the distribution of national income, peacefully.

De Schweinitz affirmed that this form of rationality would only develop “in a high-income economy”, but not in a mere “subsistence economy”. Samuel P. Huntington, an influential author of the second wave of modernization theory, argued that democratization will usually happen “at the middle levels of economic development. In poor countries democratization is unlikely; in rich countries it has already occurred” (The Third Wave).

Processes associated with industrialization make it, in Huntington's eyes, more difficult for authoritarian regimes to control the population, not least because they promote the growth of an urban middle class.

With their writings authors of modernization theory prepared the theoretical foundations for numerous comparative and cross-cultural studies trying to establish correlations and the causal relationship between capitalism and democracy. The task is made more difficult by the fact that there is no agreement as to what constitutes either “capitalism” or “democracy” and the proper measures of both remain contested.

This as well as the application of a wide array of research designs did however not change the fundamental finding of such studies that democracy, at the national level, stands little chance of survival if not coupled to a capitalist economic system.

In my paper, I suggest that the few deviant cases in which a democratic constitution that predated capitalism did not fail were sustained by variables external to both capitalism and democracy.

While there is disagreement as to whether democratization is a linear or near-linear positive function of economic growth or a threshold phenomenon associated with a country (or its citizens) reaching a particular level of income, either accounts for the fact that capitalism can, and does, exist in countries without democracy.

Still others have argued that only in countries above a certain economic threshold democracy will not be overthrown once it has been introduced. Steady economic growth appears to mitigate the danger of failure of democracy even in circumstances in which such a threshold has not yet been reached. Democracy, in its turn, has been shown to stimulate further economic growth.

Before Francis Fukuyama proclaimed The End of History and that liberal democracy and capitalism might constitute the “end point of mankind’s ideological evolution”, only once in twenty years a major liberal author had bothered to write about the linkage of democracy to capitalism at all, and then, as Milton Friedman put it, “to keep options open until circumstances make change necessary [...], to keep them alive and available until the politically impossible becomes politically inevitable” (Capitalism and Freedom).

Jeremy Bentham and James Mill had been the first though to become convinced, in the early nineteenth century, that far from destroying “property” the poor would let themselves be guided by the property-owning classes. Vladimir Lenin thus called democracy “the best possible political shell for capitalism”. Capitalism, he concluded, could not be overcome by democratic means (The State and Revolution).

Oswald Spengler put it succinctly: “In the form of democracy, money has won”. It becomes effective, he said (often repeated since), by manufacturing public opinion and enslaving free will through the media and campaigning and the systemic corruption of all the people (The Decline of the West).

Henry C. Simons, the first of many professors to turn the University of Chicago into a centre of so-called neo-liberal thought, took the “preservation of democratic institutions” to be one of the “objectives of economic policy” in the US in the face of communism and fascism (A Positive Program for Laissez Faire).

Decades of economic growth under democracy as well as the welfare state, much despised by the Chicago school, further consolidated the capitalist economic system in the West by bestowing property and entitlements upon almost every citizen and thus muting fundamental opposition.

The notion that democracy is intrinsically linked to money, and democratic power is linked to material wealth, is as old as democracy itself. Athenian democracy excluded men who did not own property and Caesar, who brought the Roman Republic to its end, was the richest man of his time.

Wherever a form of democracy arose, be it the Italian city republics or the Swiss ur-cantons, preceding economic development and the introduction of “capitalist” modes of production can be detected. The American Revolution only took place, it appears, once there was a “capitalist” cause to fight for – the spoils of the New World. All Americans were united in their ardent desire for what Alexis de Tocqueville called “material well-being” (Democracy in America).

Much of what has been written against an inherent linkage between capitalism and democracy appears, after the fall of communism, outdated. Socialists may still argue that the two are separable and that one can fight capitalism without harming democracy. However, while capitalist democracy continues, all attempts at socialist democracy collapsed at an early stage.

One cannot fight capitalism, it seems, and replace it with some non-liberal democracy because every form of democracy, if sustained long enough, will in turn give rise to some form of capitalism.

Factors associated with a capitalist economic system are among the necessary preconditions for a stable democracy.

This is the deeper meaning of the inextricable linkage of democracy to capitalism: whoever wants to fight capitalism must be prepared to fight democracy as well.

Being anti-capitalist one must be anti-democratic too.

Islamist terrorists have understood this.

The one who really means to fight the system must stand entirely outside of it.

> Read the full paper here:
books.google.com/books?printsec=frontcover&id=KkMdJtaaeOYC#PPA187,M1