Showing posts with label political economy. Show all posts
Showing posts with label political economy. Show all posts

8 May 2012

Greek People Take on Financiers

The situation in Greece is giving clear evidence that economics never could be separated from politics, and that the subject should have retained its original title of ‘political economy’. It is also demonstrating the terror that strikes the heart of the elites when people begin to act like democratic citizens and try to influence the policies of their country, particularly policies in the crucial areas of currency, taxation and wealth.

The following summary of the outcome of the Greek elections is based on information supplied by Christina Laskaridis of the Greek Debt Audit Campaign.

The most striking outcome of the elections is the collapse in credibility of the conventional parties, what would be called in the UK the ‘mainstream parties’, i.e. those that support the neoliberal hegemony. In an exceptional situation since the retreat of the generals in 1974, neither of these parties has managed to gain a majority. Prior to the crisis they received around 70-90% of the popular vote; this has fallen to 33%. New Democracy’s vote has fallen from 33% in 2009 to 19% and from 2.3 million votes to 1.2 million. Pasok’s vote has fallen from 44% to 13% and from from 3 million votes to 800,000.

In desperation Greeks have voted for a whole range of other parties, some old and some new, but through this messy situation one thing becomes clear: it is the parties that have resisted the crippling requirements of the EU central authorities that have gained. So the far right party Laos, which supported the Eurozone agreement, saw its support fall from 5.6% to 2.9%, whereas the fascist party Golden Dawn, which resisted the deal, saw a huge increase in its vote (to 7% from nowhere). In total the vote for the far right has risen from 6% in 2009 to 21%.

The real winner from the elections was the Syriza: its vote increasing from 4.6% to 17%. Their support was especially strong in all the big cities (Athens, Thessaloniki, Patras) and in working-class neighbourhoods. Its platform was for an end to the impossible and destructive ‘austerity’ agreement, called ‘memorandums’ by Greek commentators, but a continuation of membership of both the EU and the euro. While this position seems impossible, it is precisely the right position to challenge elite domination of European financial and economic institutions. The other parties of the left, the Communists (KKE: 8.5%) and Antarsya (1.2%) both campaign for Greece to leave the EU.

Again, as in the UK, a growing number of electors are voting for parties that are prevented from entering the parliament. Greece has a PR system (with a twist) but the 3% threshold is now keeping the chosen representatives of 18% of electors outside the parliament. The twist is that the party that garners the most votes in the election is then gifted an additional 50 seats. This means that New Democracy, the party that formerly governed and was roundly rejected now has by far the largest number of seats: 108.

An important lesson from the Greek political situation seems to me to be one about engagement and representation, and it links directly to the nature of the electoral system. The free-gift-of-50-seats rule was presumably instituted to avoid the weak governments that a widely allocated vote can result in, since it creates an in-built majority. Its consequence has been to guarantee that absolute power has shifted between the largest parties of centre-right and centre-left — New Democracy and PASOK — for the past 40 years. This has left many Greek citizens’s views unrepresented and has surely encouraged the corrupt and self-serving nature of Greek politics. Our first past the post system is also partly used to create a pressure towards majority governments, and the corruption and failure to respond to electors here arises from a similar source.
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11 May 2009

No Woe-Worn Creature

I've mentioned William Cobbett on this blog before, that time with reference to his reflections on the cottage economy. During the ferment of political activity that led up to the passing of the Great Reform Bill in 1832, Cobbett travelled the country reporting on the dreadful conditions being faced by working people. What he witnessed is reported in his endearing style - stranded between sentimentality and indignation - in his Rural Rides.

Cobbett visited Stroud in September in September 1826, when the British economy was suffering one of its periodic slumps, to the extent that he mentions more than 100 acres of fields which had racks for drying the newly dyed cloth on tenterhooks which were completely empty.

In spite of the interruption of trade and the low level of wages Cobbett notes that Gloucesteshire is a rich land. He finds none of the tough Northern attitudes here and the overseers and magistrates 'do not presume that they are to leave any body to starve to death':

'this is England, and not in 'the North', where those who ought to see that the poor do not suffer, talk of their dying of hunger and applaud them for their patient resignation! The Gloucestershire people have no notion of dying with hunger; and it is with great pleasure that I remark, that I have seen no woe-worn creature this day. The people seem to have been constantly well off. A pig in almost every cottage sty; and that is the infallible mark of a happy people.'

Cobbett enjoys an in-joke with his political economist reader, mentioning his meeting with a local plumber on his way to mend the pipes for 'Squire Ricardo' who is so rich that nobody would consider him a neighbour. The famous theorist of political economy lived near Stroud at Gatcombe Park, now home to Princess Anne. One of his sons was MP for Stroud following the Reform.

We are frequently accused in Stroud of being softy southerners, of having an easy job of the Transition. A friend cautions me to always be aware of the hat-grit balance when extolling the virtues of the bioregional economy. Do I dare to delight in my locally made hat while others in more depressed economies are struggling to survive?

There is a balance to be struck between the donning of the hair-shirt and the practice of joy. As Rob Hopkins points out, we are unlikely to tempt others to join us in the transition to a low-carbon future if we make it sound so unappealing. Likewise in modelling the future we want to build we should take care to ensure that there is restfulness and joy in our own lives.