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The notion that we can go back to 1940's style state bureaucracy

Isn't that a strawman?

to provide an alternative paradigm to neo-lib economics

Didn't you just argue that we would be mistaken in thinking that neo-lib economics had anything to do with the running of a globalising corporation? So why would we need an alternative?

the transformation in organisational systems

Is there any reason why this should be exclusive to the private sector?

by afew (afew(a in a circle)eurotrib_dot_com) on Mon Apr 14th, 2008 at 10:56:03 AM EST
[ Parent ]
Migeru was arguing that Keynesianism didn't fail, the neolibs didn't succeed, and the obviously solution was to go back to Keynesianism.  My answer is a Yes, but...  the world has changed, globalism isn't just about deregulation and free movement of capital, and that technology and scale has enabled and forced a complete transformation in how large scale economic activity is organised.  To be effective, the regulatory environment also needs to become more globalised, and infrastructural initiatives such as those instanced by Jerome need to become more global in scope - as Airbus already is.

Neo - liberalism appeals to the values of the small entrepreneur - who is often subject to fierce market disciplines and bitterly resents regulatory costs and perceived unfairness and inefficiencies.  Large global corporations give lip services to competition, but in reality are dedicated to destroying it, by fair means or foul.  They need some regulation to be able to operate and often have the power to ensure it reinforces their position and makes life difficult for new entrants or weaker rivals.  

However they have also been much more effective at playing of nation states against each other and maximising their advantage.  International regulation is a bit like  trade unionism, which offsets the weakness of an individual vis a vis a large business through collective bargaining.  It is only through a large number of states controlling access to key markets acting collectively that they have any chance of regulating global firms effectively.

There is absolutely no reason why the transformation of organisational systems should be exclusive to the private sector, and every reason why it shouldn't be.  But vested interests aren't the exclusive preserve of the private sector, and we lack an informed political culture capable of ensuring the necessary, and in this case real, reforms take place so that public sector organisations can rival the private in inefficiency and effectiveness, but with respect to a much more socially and environmentally responsible set of goals.

"It's a mystery to me - the game commences, For the usual fee - plus expenses, Confidential information - it's in my diary..."

by Frank Schnittger (mail Frankschnittger at hot dotty communists) on Mon Apr 14th, 2008 at 12:10:22 PM EST
[ Parent ]
Migeru was arguing that Keynesianism didn't fail, the neolibs didn't succeed, and the obviously solution was to go back to Keynesianism.  My answer is a Yes, but...  the world has changed,

And Mig and Jerome point out that Keynesianism still hasn't failed. If Keynesianism weren't viable, the economic systems that France, Denmark, Germany, Sweden and several other countries currently have could simply not exist. Thus, we can conclude that Keynes still works. Q.e.d.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Mon Apr 14th, 2008 at 02:20:36 PM EST
[ Parent ]
All countries have a mix of public and private - the question is what is the optimum proportion, and how do you optimise the contribution of both to the public good.  As I understand it Keynes didn't factor in the cost of non-renewable externalities, neither where individual polities played off against each other by mobile capital to the degree to which that happens today.  I'm no economist, but I'm also not sure what contribution Keynes had to make to the optimisation of public sector efficiencies in meeting agreed objectives.  However the universal reference point of "the market" provides some somewhat spurious measure of that for the private sector as far as the neo-libs are concerned, and that is part of their effectiveness in public discourse.

"It's a mystery to me - the game commences, For the usual fee - plus expenses, Confidential information - it's in my diary..."
by Frank Schnittger (mail Frankschnittger at hot dotty communists) on Mon Apr 14th, 2008 at 02:51:40 PM EST
[ Parent ]

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