The havoc caused by the coronavirus on the world economy is not a death knell for neoliberalism as many had hoped for. Instead, the situation mutated to embrace authoritarianism over market liberalism in the wake of the global financial crisis and the pandemic.
For starters, neoliberalism is not just an economic model but is anchored on a philosophy that nothing in this world is for free and everything has a trade-off.
Let's look at how this mutation puts us in a dangerous new normal called authoritarian neoliberalism and how we must fight this.
The first lesson is that this is a bigger crisis of capitalism unraveled by a public health emergency. The invisible hand does not work when human activity stops. The logic of a rational individual, one that maximizes utility for its self-interest, stops when forces outside its control threaten its very own survival. No longer will that individual work to the benefit of society but will become risk-averse.
This logic ignores sacrifice or love for fellow human beings.
Keynesian economics is prompted as a de facto crisis response model by neoliberals. But they only embrace state intervention as necessary for the markets' immediate return to normal. Even social protection measures in crisis response are considered market instruments to drive up consumption, bail out business, and design an economic triage to sort out populations whether they are essential or not. Universal social welfare policies that promote inclusion are frowned upon as inefficient and unaffordable.
Neoliberalism’s vilification of the state and its worship of market infallibility has been proven as fallacies. Austerity measures with reduced public spending have not reversed low levels of investments over long periods in developed economies and spawned high poverty in developing economies. Liberalization, deregulation, and privatization supposedly would lead to market competition generating greater efficiency and consumer choices. In reality, there is "corporate capture" of the state resulting to little competition and oligopolies and this has endangered democracy itself. (READ: [OPINION] How can we challenge capitalism?)
Anger and fear as currency
The second lesson is that political democracy has become a reductionist tool under neoliberalism, hijacked by authoritarian leaders. It equates representation with participation, on the criteria of ownership and control or a peso equals to one vote. Constitutional mechanisms are prioritized over debate and participation.
Far-right nationalism and authoritarianism ride on economic and social exclusion to stoke anger and heighten fear – political currencies for their electoral victories. The pandemic is now used as a justification to close borders on migration and globalization, citing these as vectors for spreading the disease. It is also a smokescreen to escape accountability.
The pandemic has basically led to a national security response than human rights based response.
Populist authoritarian leaders used lockdown measures to stifle dissent, jail dissidents, and pass draconian laws to limit free flow of accurate information and restrictions in media. It also spawned greater patriarchal, gendered norms of unpaid care work as well as rapid surges in domestic violence and online sexual exploitation of children. Loss of jobs and livelihoods, especially for women, would deepen hunger and debt. Instead of addressing people’s needs, authoritarian states are pushing for anti-terror laws that equate the pandemic and political activism as "terror threats."
The core institutions of liberal democracy are the nation-state and multilateral institutions bound by a social contract. Citizens mutually agree to live along moral and political rules of behavior embodied in an operating system called a constitution founded on justice, human rights, and rule of law. Multilateral institutions are supposed to supervise nation-states to abide by that social contract through treaties and norms developed over time. Slowly, these institutions like the World Health Organization are under attack and being weakened.
Liberal democracy has struggled for relevance as its values on individual freedoms and choice were hijacked by right-wing populism.
The third lesson is that the environmental crisis is far worse than this pandemic. While capitalism hibernated during this pandemic, it temporarily reduced extraction, consumption and disposal activities of humans.Much as we appreciated this global pause, the environmental crisis continues that impacts gravely on our planet. (READ: [PODCAST] I've Got An Opinion: Capitalism is killing the earth)
Unbridled production and consumption brought about by insatiable needs and wants is hardwired into our system that no lockdown measures can remove, unless we change models or paradigms.
The science of climate change means that carbon emissions must be reduced to near zero to put a stop in global temperature rise. So an almost complete structural transformation of energy, transport, land use, tourism, manufacturing, and industrial systems needed and investments are directed.
Challenge to the Left
This mutation of neoliberalism with authoritarianism cannot be reversed by higher economic growth. It’s about justice, equality and our own humanity. But change won’t happen without organizing.
How do we pursue a power agenda? We need a coming together of two different traditions: from the 20th century "old left" and the 21st century "new left," with viable political personalities to lead us.
We need a global democratizing political project of social movements and political parties. Political power with a transformative agenda cannot simply be delivered from the top down by the state, nor can it be a patchwork of community-led solutions done through different silos.
Economic democracy as an alternative has to be redefined. Capital is global and attempts to control or democratize it within one country will fail as it is borderless and has the backing of international financial systems. Migration and work have become global and interconnected that requires internationalism and solidarity.
With the global rise of far-right nationalism, democracy at the national level is incongruent. National and democratic solutions to fighting inequality and climate change, like a Green New Deal in the US or UK, misses the forest for the trees. A global green new deal for a new wave of growth is needed to reduce environmental damage, create employment, and reduce inequalities.
We need to build a pluralist ecosystem of democratic ownership. We need to define and identify the public commons in the economy owned by different publics and scales of stewardship. Diversity and decentralization are intrinsic principles for enhancing democratic participation and accountability.
A new labor relations framework that provides for co-management, co-determination, and profit sharing with workers have to be in place as ex-ante measures to mitigate future shocks together with a universal basic income guarantee. For social protection, the way forward is universal rather than targeted or means-tested.
We now have the ever-increasing world of the digital economy like finance and technology – where few individuals managing platforms linked to and used by millions of people. We need to close the gap of the digital divide fast as the labor-automation ratio rise and produce structural unemployment without the needed skills and capacity.
Our economy needs to be more resilient and less vulnerable to shocks. Community, cooperative, and "commons ownership" models at national and local levels can be pursued. Ownership and control of the digital "commons" have to be democratic and unfettered. Its value creation used to develop social wealth funds.
Education now has to go hybrid with online platforms and less direct social interactions. Our school system has to radically shift towards multi-modal ways of learning without sacrificing a pedagogical approach to acquiring knowledge. – Rappler.com
Tom Villarin is former congressman of Akbayan Party List in the 17th Congress. He authored the law Institutionalizing the 4Ps and the Safe Spaces Act, co-authored the Universal Health Care Law, Expanded Maternity Leave Law, Free Tertiary Education in Public Schools, and the vetoed Anti-Contractualization Law, among others.