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Joseph Schumpeter

The global technocracy confronts an inconvenient beast

Sina Odugbemi's picture
Power concedes nothing without a demand. It never did, and it never will.  --Frederick Douglass
 
Suddenly, the tumultuous on-rush of clarity. As the technocrats and leaders who run the global economic system reflect on widespread angry reactions to globalization and rapid social change, a new language is permeating the discussion of economic issues. Top economic policy leaders are now saying that ‘inclusive growth” is crucial. They are saying globalization must “work for everyone”. We are hearing exhortations about paying attention to public opinion (that famously unruly and inconvenient beast!). According to Larry Summers, a notable commentator on these matters, (in a Financial Times piece titled: “Voters sour on traditional economic policy”):
People have lost confidence in both the competence of economic leaders and in their commitment to serve the wider public rather than the global elite.

A number of traditional economic leaders in the public and private sector seemed to be making their way through the traditional grief cycle – starting with denial, moving to rage, then to bargaining and ultimately to acceptance of the new realities.


Will anything change though? There is reason to be skeptical. For, at bottom, the issue is that the global technocracy insists on economic policy being the exclusive preserve of experts. So, once the experts do the numbers and they declare a trade agreement beneficial that should be the end of the matter. Or, once the experts decide that what appears to be a high level of immigration to the ordinary citizen is actually economically helpful they tell leaders to ignore public opinion and go for it. The point, naturally, is not that expert input into policymaking is not crucial. Of course it is. The point is: it is just an input. Wise leaders must add other considerations.

Secular Stagnation: A Working Pair of Scissors Needs Two Blades

Otaviano Canuto's picture
The role of asset bubbles as an unsustainable pillar of pre-2007 world economic growth has been widely recognized. Simultaneously, analysts worry that a secular stagnation, though momentarily offset by asset bubbles, may have been already at play in major advanced economies, leading to the ongoing sluggish and feeble recovery.

Voted, Vanished, Vanquished

Sina Odugbemi's picture

Photo Credit: Arne HoelWhat is the basis of the claim that 'People, Spaces and Deliberation' are central to how you achieve good and accountable governance durably? One way of buttressing is to step back and reflect on two competing interpretations of governance, really, politics. The first interpretation of governance or politics is that it is purely and simply the business of the elite.