Tuesday, 5 July 2016

 
10. REBUILDING DEMOCRACY POST-BREXIT: #BETTER TOGETHER AND/OR #TAKE BACK CONTROL
July 4th 2016… Caislean Ghriare, Chiarrai, Eire…where there is some excitement about a closer relationship between Eire, Northern Ireland and Scotland, as a Celtic Alliance to form a sustainable economic union to remain in the EU, on an ‘independence day’ worthy of celebration for the birth of a new democracy, rather than the expiry of one now well past its sell-by date. [July 20th…Not having had a preview of the fairy story we are currently living through, I have now had to make some ‘corrections’ to my original post...in square brackets.]
This essay was prompted by the Brexit Referendum and following events, and their resonance with the theme of my Churchill Fellowship report “Property, Justice and Reason” which focussed on the unhealthy state of our democracy and the decline of civil society institutions in the post-WW2 era. (Report published here, by the Winston Churchill Memorial Trust, and a version for academics at Academia.edu. See also previous blogs below.)

By Christoph Scholz - Brexit auf Wegweiser - Scharf, CC BY-SA 2.0,
https://commons.wikimedia.org/w/index.php?curid=77691502
For me, the last few days have been a painful reminder of a personal failure, as a non-governmental member of the Ministerial Sounding Board on Local Government Reform from 2000 to 2005, to make a sufficiently strong case for ‘Double Devolution’ through which New Labour’s planned local government reforms would have brought about greater power sharing between local government and their communities: a particularly necessary change for reviving many areas that were disadvantaged then, that are even more disadvantaged today, and have almost universally voted to leave the EU. 

 
May 14th 2002 is the date that I cannot forget, and it is intimately connected to the outcome of the Referendum on June 23rd 2016: a day many more will have reasons to remember.
 
[The themes of this essay…the need for a democratic renaissance and greater local autonomy…will be incorporated into a chapter “Taking self-build out of the small and special box - Putting ‘the political’ back into ‘the social’ of self-build” in M. Benson and I. Hamiduddin Ed,  Self-Build Homes: Social Discourse, Experiences and Directions (UCL Press) http://discovery.ucl.ac.uk/10038399/1/Self-Build-Homes.pdf ]

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Game show politics
“Sure, t’was obvious the man never meant to win. He never wanted to be Prime Minister just yet.” The old farmer selling us newly dug spuds and carrots, at the Dingle market, and indeed most Irish people we have spoken to in recent days, all seemed to know something that we Brits failed to spot, until it actually happened: ‘the man’ being Boris Johnson.
In the turmoil following Johnson’s ignominious departure, almost certainly permanently, from our public life, […perhaps not just yet, at least until he can no longer busk or bluster his way through the unexpected responsibility of Foreign Secretary and having to deliver what he promised in the referendum campaign] Irish political commentators are enjoying the opportunity to turn the tables for once and poke justifiable fun[1] at the state of our political establishment. “The British government currently resembles the management team of a poorly-run bank at the height of the financial crisis,” suggests Chris Johns in the Irish Times, “during which it was said of many a bank executive that they had risen without trace…without ever having to make a tough decision”. According to political columnist, Fintan O'Toole, also in the Times, “What’s different about the new reactionaries (viz. Trump and Johnson) is that they are not at all serious (about what they say). The farce of Johnson’s abortive leadership bid is just a token of the deeper truth: this is a game of thrones that is all game and no throne”: a verdict that seems now more apposite, a few days later, to describe Farage’s third resignation, so that he can get his life back. Not even the script writers for ‘The Thick of It’ could have imagined this.
‘Establishment’, though, seems too grand a word for something in such evident disrepair and needing a substantial programme of maintenance and modernisation, much like the Houses of Parliament themselves, and doubtfully ever likely to be fit for purpose again without huge investment and rebuilding. [Well, the new Prime Minister seems to have a better idea of the scale of the challenge, and understands that you sometimes need to rebuild the foundations during the storm that is washing them away, rather than just repair the roof when the weather wasn’t too bad, as her predecessor seemed to think.]

Ahoy there, Voters!
On line voting card...so much more informative 
than a referendum and real choices
So what was that vote all about, really? VoteyMcVoteFace? If you believe Private Eye. Or even BoatyMcBoatFace? Judging by the post-ballot reactions, everything was clearly being framed in the comforting glow of our proud seafaring past, when we were all gallant, honourable, ruled the Seven Seas, and knew how to steer a firm course (without satnav): ‘we’ meaning, of course, the officer class who knew what they were doing and what was best for everyone else as well as themselves.   
The Leave campaign was accused by the Labour Party of "losing its moral compass". (Does the Labour Party even know what a compass is?) The Chancellor avowed “It will not be plain sailing in the days ahead.” Headlines shouted ‘waves of shame’…‘Our greatest victory since the Cod War…Iceland erupts at another European exit’…oh no, that’s the Euros (the footy ones), though maybe the Icelanders were just getting their retaliation in first, as apparently ‘Brexit will not ensure bigger fishing catches’….or maybe they were considering receiving Boris Johnson Stanleysson into the exile that he certainly deserves, [or perhaps stoking Mount Eyjafjallajökull into action to ensure he can never fly in to negotiate a bilateral trade deal with them]. Chris Johns, again, joining in the nautical theme, “For much of the time, senior managers and politicians with these (unremarkable) qualities don’t do too bad a job: sailing in calm waters isn’t that difficult even if you are not a skilled yachtsman. It’s when the storms roll in that the weak get found out.”
And, of course, in the case of the avoidable course chosen by Captain ‘Schettino’ Cameron, “I will do everything I can…to steady the ship over the coming weeks and months, but I do not think it would be right for me to try to be the captain that steers our country to its next destination.’ 

https://commons.wikimedia.org/w/index.php?title=
User:Paolodefalco75&action=edit&redlink=1
 However, none of us saw the   similarity between our ship of   state and the fate of the Costa   Concordia, and the idea that we   were being taken on a dangerous   detour into the shallows, with out   of date charts, by a captain who   was just showing off and alleged   to have been entertaining a night club dancer at the time…sorry, that was Communications Officer Whittingdale, but you get the idea; they were all in it together, after all.
Equally, no public figure had the presence of mind or even the appetite to be our ‘voice of duty’ Coastguard Gregorio de Falco, and order Cameron to do the really decent thing “Vada a bordo, cazzo!” (“Get back on board, for fuck’s sake!”). Schettino was labelled ‘Captain Coward’ by the international media, and prosecutors at his trial described him as “a reckless idiot”. Cameron’s final reputation has yet to be decided, though President Obama’s verdict on meeting the Conservative Party leaders in 2009 seems near enough the mark: Captain Cameron was “lightweight”, and Purser Osborne “lacked depth”…or now, more accurately, 'flotsam' and 'jetsam'? [2]
[Well, I was completely wrong about the casting for this bit of the Costa Concordia saga…Captain Schettino was played by Johnson, and Coastguard de Falco was obviously the new Prime Minister, Theresa May, who has cleverly managed to retrofit the referendum campaign with a modest portion of accountability, by giving the Leave campaign the responsibility for delivering on the promises they made. Passed over Chief Engineer Davis has been brought out of retirement to rebuild the Whitehall engine room.]
A great day for Democracy?
Meanwhile, other public figures were exulting in the referendum result: “the People have spoken” boomed ex-Daily Telegraph writer, Peter Oborne on BBC R4. Yes, we certainly have, but what were we all saying?
Lots of different things to be sure, though it is doubtful that many of us were answering the actual question on the ballot paper. How could we have done? What is now plain to see is that neither campaign expected the result, had no Plan B, and not a clue about what would happen in the eventuality of actually having to negotiate to leave. So if they don’t know now, how could we have possibly made an informed choice on June 23rd? The campaigns were essentially fact free, at least of reliable facts, independently verified by, say, the Electoral Commission or the Office of Budgetary Responsibility. Indeed, the ‘Leave’ campaign adviser’s direction was to avoid facts…the electorate does not want to hear them…this was to be a vote about emotions.
The voting patterns have now been minutely analysed, and it is clear that there are many messages from different parts of the country, from different age groups, and different income levels. Emotions strongly felt do lie behind these differences, which would suggest that with a country so unhappy with its present state of mind, and unclear about what country (or countries) it wants to be, then we have no business going into negotiations over leaving the EU that could affect our ability to be that new country, whatever it is.
As one wise politician wrote, not so long ago[3], “We can no longer blame Brussels. This is perhaps the most important point of all. If we left the EU, we would end this sterile debate, and we would have to recognise that most of our problems are not caused by “Bwussels”, but by chronic British short-termism, inadequate management, sloth, low skills, a culture of easy gratification and under-investment in both human and physical capital and infrastructure.” Yes, it’s that ‘man’ again. Johnson might also have elaborated ‘and 30 years of tinkering with our health service, our biggest national business and employer, by people with little if any managerial experience… and 30 years, too, of ignoring the task of designing a new post-industrial world of work, following financial deregulation in the mid-1980s, with a new vision of the education system needed to support it.’ 
My own emotion is one of fury…fury that the arrogance of the English has brought us to this:
  • The arrogance of the English Tory Party, which had to sort out its own internal power struggle, after a generation of trying and failing, by passing the buck to us and asking us a question that was self-evidently not fit for the purpose that it pretended to be addressing…and failing again despite getting a ‘result’.
  • The arrogance of the English voters that they imagine their preoccupations should trump the futures of Scotland, Wales and Northern Ireland…and Ireland, as well.
  • The arrogance of the English who claim that there is no racism behind the concerns about migration. Well, just take a look at the density of Leave voting in the West Midlands, as an example of an area of well documented electoral malfeasance on racist issues over a generation: the rivers of racial prejudice and abuse have been running deep and dark for a long time.
  • Above all, the arrogance of English politicians who can shamelessly get up in Parliament and claim that June 23rd was “a great day for our great democracy” (Sir Bill Cash…so at least protected by Parliamentary privilege for such disregard for the truth).
A great day it certainly wasn’t. Witness the insouciance of the campaigners denying their promises within 24 hours, the immediately obvious absence of any accountability of the campaigners to the electorate, the view of Farage that if it had been 52% v 48% against Leave, he would have considered it “unfinished business”, the news that Johnson had been talking to the Editor of the Sunday Times about a second referendum after further negotiations with Brussels…and so on.
This was ‘the voice of the People’, but it was screaming into the vacuum. Many people had rationally decided that this referendum was a rare, possibly unique, opportunity to tell our politicians what really concerns us, unconstrained and unmediated by the limitations of our normal party allegiances and first-past-the-post voting. The truth is we were a sideshow to the political ambitions of a very few arrogant English political minds, who it now turns out were simply not up to any kind of job […but have now been put on the spot to shape up or shut up].
 
Whatever is going in the Tory, Labour or UKIP parties in Westminster today…and it’s hard to keep up…it isn’t changing anything in the constituencies. Neither Conservative nor Labour parties know how to respond to the fact that their traditional allegiances are fractured and fading, and that the divisions amongst their traditional supporters, and between those supporters and their elected representatives now overwrite the business as usual Westminster script, and the values they have traditionally represented in the British political economy. [Three years of ‘steady as she goes…right hand down a bit’ under Captain May are unlikely to change that reality.]
 
Rebuilding trust, confidence and universal participation in political life
The tragedy of the referendum is the tragedy of the state of our democracy. No one has heard our scream, or the cry of the murdered Jo Cox, “We are far more united and have far more in common than that which divides us”. Who now stands for that?
John Stuart Mill’s advice that having “a party of order or stability and a party of progress or reform are both necessary elements for a healthy state of political life” describes a desirable state of being that now looks a very remote prospect indeed. The idea that we are a ‘mature democracy’, able to rely on the ‘Mother of all Parliaments’ has been exploded. In Shakespeare’s quatercentenary year, ‘Mother’ has definitively reached the ‘sans teeth, sans eyes, sans taste, sans everything’ stage, and we are desperately in need of a political renaissance.

The Costa Concordia experience has other parallels for us in the remedy. When everything else has disintegrated around you, there is little to be gained from just focussing on appointing a new captain and recruiting a new crew. You really need to start again and rebuild your ship or building from first principles. Find an engineer, someone who can fix the foundations, repair them, do the underpinning or even build new ones. The salvage engineers performed an almost miraculous recovery of the sunken Costa Concordia, with skill and precision, and careful forward planning: the nautical equivalent of new foundations. Unfashionably for our political culture, this was a necessary occasion for calling in ‘the experts’: people otherwise now to be universally sneered at and dismissed as out of touch.
But who are the experts in democratic renewal? Who are the ‘demos’? We don’t need Johnson to tell us that ‘we’ are the people, so the answer is obviously ‘us’. But where and how can we relearn how to live more democratically and generously together? Governments of all colours have variously undermined or ignored civil society institutions, sometimes casting them as irritating and even undemocratic critics of the state that knows best, and expressly excluding them from the political life of the country; also to the considerable satisfaction of the corporate commercial sector which has colonised public life in our place, and downgraded us to the role of passive consumers. 
We have not done all that we could have done to sustain our role in public life. The progressive historian and political philosopher R. H Tawney, is famously remembered for saying that Britain had accepted democracy “as a convenience, like an improved system of telephones: she did not dedicate herself to it as the expression of a moral ideal… She changed her political garments, but not her heart… She went to the ballot box touching her hat”.
Modern versions of telephone systems can easily be set to ‘Send only’ mode, and, as is the case with Labour Party communications, with quite explicit and unconcealed directions for ‘no-reply’. For this ballot, however, no one was touching their hat. Something had changed, and the immediate aftermath of the result was ugly and frightening, with levels of violence, hatred and abuse of ‘the other’ that have already been accommodated in a way that even the petty misdemeanours of the Tottenham rioters, for instance, were not. These actions have been legitimised by the words, actions and demeanour of, amongst others, an unelected (to Westminster) public figure, for whom serious political work is clearly too troublesome, and with no political accountability to anyone.
We need to relearn how to live democratically and peaceably together…fast…and that should mean both ‘taking back control’ and living ‘better together’. There are serious and thoughtful politicians who are only too aware of the fragility of our democracy. From a left’ish progressive centre, Lisa Nandy MP, until recently a Shadow Minister, advocates, “putting people back in control…(this) means there is not just one ‘right way’ of doing things, and no universal delivery mechanism, except to start with the energy, passion, creativity and strength in communities and build from there.”[4]
From a right’ish progressive centre, junior minister Rory Stewart MP observes that everyone thinks that everyone else is more powerful than them, but that they are all mistaken: "What is our democracy? Who do we want to be? I like the idea of organic history and tradition. But I think Britain is such a different place now, and changing so quickly, that I'm coming slowly, painfully, to accept that we need to start again…in our situation, we're all powerless. I mean, we pretend we're run by people. We're not run by anybody. The secret of modern Britain is there is no power anywhere. Some commentators think we're run by an oligarchy. But we're not…The politicians think journalists have power. The journalists know they don't have any. Then they think the bankers have power. The bankers know they don't have any. None of them have any power."[5] He contends that it is very hard to see where power lies, unless it can be amongst ourselves and in our own sense of autonomy.
Effective devolution and power sharing ‘where you are’
Stewart is convinced we need to rethink our democratic institutions from first principles. With the collapse of trust in many of our democratic and civic institutions, we need to invent new ones that are fit for political purpose. He believes that citizens must be re-empowered and that government must learn to ‘let go’ and devolve more power to localities and communities.  Labour failed to do this with ‘Double Devolution’ in the reform of local government in the mid-2000s, contemptuous of the need to involve and be respectful of local people and their priorities.
My own advocacy of devolution and power sharing with communities, on Nick Raynsford’s Ministerial Sounding Board, was met with “Our job is difficult enough already. For God’s sake don’t make us work with communities as well” from the voice of Labour local government. (That was on the dreaded May 14th 2002.) Taking that abandonment of a key aspect of David Miliband’s proposed reforms together with the neutering, by Chancellor Brown, of the Lyons Inquiry into Local Government Finance, that might have given local authorities genuine financial autonomy, we can see now two extraordinary missed opportunities to rebuild local democracy, and enable communities to take back the control which they are now claiming.
As it is, not working with their communities has made the work of local government a much harder task over the following 14 years. Labour councils, in particular, have been left to be the fall-guys for implementing ‘austerity’ that has been disproportionately weighted on them by their political opponents: a rich reward for their unwillingness to share power with their own citizens. Although local government now receives much less from central government, its autonomy is still perilously dependent on Whitehall patronage for the few extras that now pass for devolution.   
Stewart has been a strong supporter of community housing projects in his constituency and across the country, and it’s obvious why. They provide the foundations for locally accountable democratic action where it really affects everyone, and where everyone who wants to can have a voice. My Churchill Fellowship research into citizen inspired housing was also a step on the journey from that rebuff on ‘Double Devolution’, looking for accessible and lasting forms of localised democratic practice. Cooperatives, cohousing and Community Land Trusts are locally accountable democratic institutions, open to all who want to make them work. The people who have done the hard work of setting up these institutions have done so with a passion because they represent important political ideas about the way they want to live, that belong to neither right nor left, and which have not been catered for by either public policy or the market. They have had to create their own solutions. Yet even after all that hard work, it is still mainly the state determinist wing of the Labour Party that is unable to accept participatory democracy as having equal legitimacy with representative democracy: too many Labour politicians act as if they have a monopoly on democracy…and it is actually that control that the voters have now said they want to take back.
Organising and learning how to live together more democratically, in the streets and neighbourhoods where we do in fact live, is an obvious task that anyone can take up. We could all start tomorrow, if we really cared enough about our democracy. Some are already doing it in rural areas and cities across the country, with astonishing results. Democracy is hard work, and we can’t blame politicians, or get angry with the system, if we can’t actually be bothered. We haven’t been bothered for quite a while, and the corporate political and commercial elites has been happy enough to acquiesce to our inaction, or perhaps ‘sloth’ as Johnson, or, better, Beveridge might have put it: one of his five great evils. If we really want to ‘take back control’, we will have to do it ourselves…that’s one thing we can’t expect politicians to do for us.

Friday, 1 April 2016


9. NEW ‘WORKHOUSE’ PROGRAMME HERALDS RESUMPTION OF ‘JOINED UP GOVERNMENT’
April 1st 2016

Not since the heady days of early new Labour has there been so much interest in ‘joined up government’. I was enjoying being a member of the Government’s ‘Joining it Up Locally’ Policy Action Team, that was sponsored by the Social Exclusion Unit on the Cabinet Office, which fed into the Government’s National Strategy for Neighbourhood Renewal, and Modernising Local Government programme. The product of all this enthusiasm and energy was a range of powerful joining up mechanisms…the Local Strategic Partnership, Sustainable Communities Strategies, spatial planning, placemaking, placeshaping, Total Place, Total Capital, (…and more, much more.)

Talking to a civil service acquaintance yesterday, I learnt that today marks the launch of a unique Whitehall initiative to join up a raft of policies relating to welfare and housing. Making use of funding streams available to councils through s.23 Local Government Act 2003, and the various Community Rights Regulations (relating to Chapter 3 of Part 5 of the Localism Act 2011), parish councils and other qualifying community led organisations in England and Wales will be able to take local action to ensure that people out of work can be provided with work and a home.

I tracked down a spokesman from the new cross departmental team, WorkHouse, who told me, “For too long, it has been a stain on the government’s record of fairness that there has not been any coordinated action in this area of public policy. We need to ensure that people without work should not be prevented from re-entering the labour market as a consequence of unfairly occupying or underusing a publicly provided home. We will ensure that parish councils and other well-meaning community organisations have the resources to provide new forms of very basic accommodation, access to healthy meals, linked to a requirement to work.”

Information about the employment aspects of the initiative, already known colloquially amongst ministers, I understand, as the WorkForce programme, shows that the value of the accommodation and food will be the equivalent to the Living Wage, so the new programme will be cost neutral to the taxpayer.

Initial capital and revenue funding will be available via the Local Government Act 2003, which provides a general power for Whitehall departments to directly fund councils for any activity not covered by other legislation. The Community Rights Regulations allows property to be designated as Assets of Community Value, and requires property owners to consider bids from community groups before selling on the open market. It also contains a measure that requires local authorities to exercise their powers of compulsory purchase where the local community benefit is aligned with national policy priorities. “We expect communities to want to take advantage of this new initiative, especially through the take up of neighbourhood plans, to create what we are calling ‘work-houses’, to ensure that their community becomes more self-sufficient, resilient and sustainable. Community Right to Build Orders will be ideal to create this new form of housing for the 10% or so of local populations not making their fair contribution to society.”

A Treasury contact confirmed that “the Chancellor sees this an important measure to improve national productivity.”  Joined up government at last…phew!

Monday, 21 September 2015


8. SEPTEMBER 21st 2015: ‘A’ IS FOR....UM?

My Churchill Fellowship report “Property, Justice and Reason” is published here, by the Winston Churchill Memorial Trust. A slightly reordered version for academics is available at Academia.edu
If you want to discuss the contents of the report, you will find my contact details in the report.

It's been a momentous week since the election of a new Leader for the Labour Party. The negative reactions, both within the party and from other parties, and from the commentariat are respectively disgruntled and condemnatory. What they all fail to get is the message behind both Corbyn’s appeal in the UK, and the extraordinary success of another ageing socialist in the US Presidential race: Senator Bernie Sanders giving Hilary Clinton a terrible fright.

The message is that we want a politics that is about us, the citizens; we don’t want a politics about you, the politicians. We want you to represent us to the state, not use your position to represent the state to us. We can all question aspects of the policies of Corbyn and Sanders, but we cannot ignore what these two men stand for in the renewal of political life.

People voted for Corbyn primarily because they wanted Labour to realise that the way it does its business has to change. That’s a message for every political party and every politician.

So…more advice for Labour? Surely not…too much has been written already. Even so, I’d like to add one more idea. It’s sounds easy but, in fact, goes to the heart of what Labour needs to do: supporting individual and collective autonomy to achieve the wellbeing of all, for the common good.
Many Labour politicians understand political agency as being primarily about them; their own personal autonomy and capacity, and that of the professional political class, to bring about progressive change through their direct actions. They have strong role models in recent leaders of the party. These will, almost by definition, be technocratic fixes; often important and necessary, but unlikely to be about systemic and cultural change which requires the contributions of many.
They seem particularly blind to the idea that their agency in relation to some problems is limited, not least by time: the duration of political administrations and their own political trajectories. A good example is neighbourhood regeneration, which is the task of a generation, and needs to be accomplished primarily through the agency of communities and civil society institutions, which can carry through what individual politicians or even whole parties clearly cannot.
I have been working recently with a talented and resourceful estate community, who devised their own long term regeneration plan. (See pp 43-7 of Academia.edu version of my report - link above). It proposed a unique and innovative partnership institution to bring together the community, the council and wider civil society organisations. The estate has been in municipal ownership for 40 years, and is commonly regarded as the most challenged estate in a ward with the borough’s worst indicators of poverty, especially health and life expectancy. Yet, it has never had a strategic regeneration plan led by its owner, resourced with the financial and social capital for it to be carried out over a 20-30 year period, which is how long it would take.
The community offered the council the opportunity to build 170 new permanently affordable homes built, as infill on the estate; nearly five times more than the council itself had thought possible. Not unreasonably, the community wanted something in return; the opportunity for them to get the estate off its knees, where it had been for decades, and turn it into a wonderful place to live for the whole community. Just building new homes could  never be the whole story.
The community’s reward for their presumption in developing their own plan is to be condescended to, described as ‘willing souls’ in internal council emails, and publicly ostracised by their councillors. The council will take the housing gain offered by the community, but will do the regeneration ‘their way’ and to their timescale. It has taken them over two years from the publication of the community’s masterplan, to do nothing except argue over who is in control.
By way of explanation, the community’s plan has recently been criticised by council officers in the local press as requiring ‘too much autonomy’ for the residents. Excuse me? Can you have ‘too much’ autonomy? When did councils assume powers to determine how much autonomy we may have in our lives: that is we, the citizens, who perhaps unwisely but nevertheless freely use our autonomy to vote our fellow citizens into positions of power?
Sir Michael Marmot and every public health professional in the world will tell you that the lack of personal and collective autonomy is the greatest single risk factor to health and wellbeing. Undermining the autonomy of this community, its anchor organisation, and the people who have worked to sustain it, built up over two decades, as is now happening, is an act of political vandalism: the very opposite of the principles of the Labour Party’s own Policy Review.
De Tocqueville writing in Democracy in America in 1835 warned that “the parent state keeps its citizens in perpetual childhood. Its power is absolute, provident and mild; it is well content that people should rejoice provided they think of nothing but rejoicing.” That’s a warning that applies to all political parties. For example, the Chancellor is alleged to have claimed when introducing the Help to Buy policy in Cabinet in 2013 “Hopefully we will have a little housing boom, and everyone will be happy as property values go up”. A brief and illusory pleasure for a very few...

But De Tocqueville also asserted that
“the health of a democratic society may be measured by the quality of functions performed by private citizens”; and many citizens of all ages are no longer content with the patronising 'the state knows best' attitude, or to be fed the bread and circuses of rising property values that are, in fact, impoverishing us all.

Citizens want to build homes that are genuinely and permanently affordable, related to what people actually earn, and want to take them out of the speculative land market, especially in London. Politicians should follow the lead of these brave and rational citizens, and support them to do something that the political class would never dare to suggest itself, even though the need for it is glaringly obvious.

Sweet Politicians, the ‘A’ word is neither Aspiration, nor Ambition, nor even Austerity...but AUTONOMY.
Courtesy Phil Reynes Colorado Indymedia

Sunday, 12 April 2015


 7. APRIL 12th 2015: LAND – “THE MOTHER OF ALL MONOPOLIES”
- POLLUTED OR FERTILE GROUND FOR A POLITICS FOR THE COMMON GOOD ?

My Churchill Fellowship report “Property, Justice and Reason” is published here, by the Winston Churchill Memorial Trust. A slightly reordered version for academics is available at Academia.edu
If you want to discuss the contents of the report, you will find my contact details in the report.

 -------------------------------------------------------------------------------------------------------------------------------Even if you've never played Monopoly, you'll know what the game is about: borrowing heavily to buy up as many properties as you can, renting them out for as much money as possible, and then seeing who can win by impoverishing the other players first…putting them on the streets, or permanently in jail. Starting to feel a bit uncomfortable?

What you almost certainly will not know is by whom and when it was invented. Not by Charles Darrow, as he and Parker Brothers (now Hasbro), the producers of Monopoly, like to maintain, in 1932, but Lizzie Magie, a stenographer, living in Washington DC, thirty years earlier.  She was concerned at the growing inequalities of income. She was a fan of Henry George, the economist advocate of Land Value Taxation, and she used the game which she launched in 1903, to introduce progressive ideas into middle class American families, suddenly enthused with the new craze of board games. In a new book. “The Monopolists: Obsession, Fury and the Scandal Behind the World’s Favorite Board Game”, Mary Pilon tells the full and torrid story of the game's progress to becoming a worldwide phenomenon. Originally called The Landlord’s Game, Lizzie invented two alternative sets of rules: the monopolist and anti-monopolist version. In the anti-monopoly world, wealth created by one player was shared with everyone else. You can see why it didn’t catch on...to our great loss.



In Churchill's ‘People's Land’ speeches for the  two general elections in 1910, he called land the 'mother of all monopolies' and was happy to explain to the electorate how unconstrained land price had the capacity to damage society and the economy, and undermine basic freedoms. Twice the Liberal Government was elected that year with a mandate to deal with the land question. As with the demise of the anti-monopoly version of the Landlord's Game, the entrenched self-interests of land owners prevailed.

As if to make the point made by Churchill and Lizzie Magie, the Wriglesworth Consultancy this week published a comparative survey of investment returns over 20 years, in which buy-to-let landlords have made a return on (borrowed) capital of just under 1400% since 1996, compared with the next best return on Gilts of 233%. Buy-to-let returns rely on sucking huge volumes of cash out of the productive economy, simply because they can, not because it makes any economic sense. Four decades of ineffective and short-termist policy making on housing and land has created the perfect conditions for the ‘mother of all monopolies” to be the playground of the opportunist profiteer. Imagine any politician saying today, “We wish to make the land less of a pleasure-ground for the rich and more of a treasure-house for the nation:"…let alone a Prime Minister, as Campbell-Bannerman did in 1905.

Even so, as I was sitting on the plane to Boston at the start of my Churchill Fellowship, exactly a year ago today, I still had a generally positive view of what I might discover in the USA, based on my experience of how public policy and the working of land and housing markets normally interacted. I did believe that eventually markets do come back into some kind of balance with the public interest that politicians usually strive to achieve, and which the public feels is reasonably acceptable, if never perfect or permanent. The extreme highs and lows in markets that still exist seven years after the credit crunch and housing market crash of 2006-8, and the deepening social and economic inequalities that have followed, was stretching that expectation, but had not fully exhausted it.

By the time I finally reached my apartment that night, via a public meeting in Jamaica Plain, South Boston, I had seen at first hand the result of taking such a benign view of the behaviour of land and housing markets. (You can read about it on page 61 of my report.) In a ‘hot market’ like Boston, as in many other successful or ‘over-successful’ cities, the ordinary citizen has become merely the necessary medium for local and global financial institutions speculating in prime and soon-to-be prime real estate Whilst an actual person is needed to sign a mortgage contract, or a tenancy agreement, after that we are the essentially inconvenient collateral damage of their rent-seeking interest. As long as they have a contract that ties them to the property, what happens to the occupier is of no consequence to them.

The financialisation of land and housing markets, and the transformation of real estate into a global commodity has been normalised through the entirely legitimate actions of politicians, banks, landowners, professionals, and ordinary citizens who have quietly acquiesced at their own effortless enrichment through commodity speculation; sometimes sleepwalking, or with eyes tight shut and pretending not to see, but often uncomprehending. Until very recently, and still in the eyes of too many politicians, only a rising housing market is a market in good condition that is also good for the economy and the nation.

In every place that I visited in North America, I saw this story being enacted in what the US economist Thorstein Veblen called, over a century ago, “the great American game…an enterprise in (land) ‘futures’ ’’[1], originally applied to the development of country towns, but now being played out on a world-sized pitch. I also saw its obverse, the abandonment of neighbourhoods, when the gamesters decided they had had enough.

It would have been easy to be depressed and overwhelmed by the power of global finance and the unwillingness or inability of the state to wield power in the wider public interest. Instead, I focussed on what I also found; the indomitable determination and perseverance of citizens, often using community land trusts, to take their own actions against these powerful forces, in the face of which politicians seem powerless. These citizens and their new institutions hold the promise of what could be achieved if politicians could only harness the energy, goodwill and integrity of their citizens to roll back the damage being done by the financialisation of our land and housing markets.

Far from criticising governments on the details of their housing policies or the absence of them, therefore, my report talks more about the need for a different kind of politics to achieve ‘the common good’. There is a substantial literature and continuing debate about what the ‘common good’ might be. That is rather the point. The common good is not an absolute good, but it is about the involvement of everyone to talk constantly about what it should and could be: constantly up for negotiation.

Maurice Glasman, the Blue Labour peer, offers a helpful starting point for thinking about the politics of the common good: “John-Paul II described politics, following in a long Aristotelian tradition, ‘as a prudent concern for the common good’. A common good between young and old, capital and labour, immigrants and locals, Christians and Muslims, city and countryside, faithful and secular. This is how solidarity needs to be rethought, and its appropriate vehicle is a politics of the common good that is built upon resisting the domination of capital and the state by local and decentralised democratic politics. The Common Good is discovered between people and returns their agency. Such a politics is a vocation, it has all the characteristics of labour. It is definitive of our humanity and can cause great suffering, frustration and tension. In all its forms, however, it is better than the politics we have now.” 



The printed patent drawing for a
game board invented by Lizzie J. Magie.
Image licensed under Public Domain
via Wikimedia Commons
Glasman and other members of the ‘Together for the Common Good’ Steering Group, a mix of secular and religious organisations, aim to start a national conversation about the meaning of the common good. We need practical examples of what working for the common good looks and feels like. That is what I hope to illustrate through the nine narratives that make up this report. The need for politicians, professionals and the citizen to find new ways of working together for the common good is as urgent as ever.

When Lizzie Magie invented her game, with squares offering $5 for ‘Absolute Necessities – Bread/Shelter/Clothing’ and respite at the Poor House, she could not have imagined that all these offerings are still needed a century later in the richest economies in the world. Maybe if her anti-monopolist version of the Landlord’s Game had survived, generations of young people and their parents might have learnt that there is another way.
 
[1] Veblen. T (1923) Absentee Ownership and Business Enterprise in Recent Times, cited in Hudson. M (2012) Veblen’s Institutionalist Elaboration of Rent Theory, Paper at the Veblen, Capitalism and Possibilities for a Rational Economic Order Conference, in Istanbul June 2012.

The picture that forms the background to this blog was taken in 2012 in a district of Istanbul being socially and economically cleansed of low income households to make way for a new upscale district of shops, offices and high end apartments.