During a lecture in Dublin a few years ago the US economist Joseph Stiglitz set out in plain terms an aspect of the modern world that is of particular importance when considering the strain which so many western societies, including Ireland, are now experiencing.
The economist was addressing how the West can best deal with the effects of globalisation, and, if memory serves, then his prescription included classic European policies such as state support for those who lose their jobs, including retraining, and a focus on high quality education. But it was his simple description of the basic facts concerning globalisation that made the most impact on this reporter, and watching the increasing amount of rancour that entered Irish public life this year, it is easy to see how the evident frustration that is abroad fits in with the picture painted by Stiglitz.
Globalisation means that labour in poorer countries is competing with labour in the richer, more developed world, and because of this working- and middle-class incomes in the West are no longer growing the way they once did. In some western countries they are stagnating or have even gone into reverse.
Hundreds of millions of people are being lifted out of abject poverty because of this tectonic shift in the distribution of income from labour. By way of an example, Indonesia, with a population of 240 million, expects that its “middle class”, which numbered single digit millions at the outset of this century, will top 130 million by 2030. (A middle-class income in Indonesia has been defined as one that exceeds $3,500 net, in 2005 purchasing power terms.)
Global market
Meanwhile, the owners of capital are not just profiting from the fall in labour costs, they also have a global market into which to sell their goods and services. So while for major corporations and the super-rich, the conditions for making ever greater profits have never been better, for the bulk of the population of the developed world, the future is a country filled with challenge.
All of the this feeds into the crisis being faced by party politics in Ireland and the drift seen this year towards nationalism (Sinn Féin), flat-earth socialism (Clare Daly, Paul Murphy), anti-party independents (Ming Flanagan), and other manifestations of people’s frustration. This temptation to abandon traditional and centrist political parties is now common in the Western democracies and it would be extraordinary, given the nature of globalisation, if it weren’t so.
The question is, what to do? It is a question that policymakers and political parties here and elsewhere have been struggling with for years. This must be part of the reason, I suspect, why Irish “establishment” politicians are so annoyed with the antics of the politicians leading the anti-water protests, who are encouraging the public to believe there is some magical way out of the conundrum the West faces (a united Ireland, a socialist, State-controlled economy, giving a bloody nose to party politics). Of course, the fear that they may lose their seats to these forces is a part of their reaction, but that is not relevant to the debate as to what should be done.
Political programmes
If Ireland, along with other countries in the developed world, is to best manage the challenges being thrown up by globalisation, then what is needed above all is a well-functioning political, economic and social system, be it centre-left or centre-right or dead centre. This is best achieved by having political parties that promote reasonable and serious political programmes, which they can then seek to implement if they get sufficient backing at the polls.
Party politics may be out of favour but people who don’t like party politics might find it educational to pay a visit to countries where they run other types of political systems. Frustration, and even rage, is understandable, but people should think carefully before putting anger or fantasy before policy. One of the key drivers of Ireland’s recent and spectacular economic crash was the support the electorate gave to unwise and opportunistic politics. It would be nice to think we’ve learned from our mistake.
There is another reason for turning your back on those who would promote rancour in political debate. During the year a consumer sentiment index run by KBC registered a sudden dip in people’s optimism during May. The reason, it was decided, was the local and European elections. The relentless complaining and accusation that people were being exposed to as candidates fought for support, drove the national mood into a slump. We talked ourselves into grumpiness, whereas up to that we had been experiencing increasing hope. The index showed another dip in October, which the bank put down to the water charges row.
Relentlessly negative, rancorous politics is, as well as being worse than useless, bad for your mental health. Ireland is one of the most pleasant places in the world in which to live, stuffed as it is with the nicest, kindest, most well-mannered people on the planet. That’s worth remembering.
Happy new year.
Kathy Sheridan is on leave