Friday 24 July 2009

On Government-EB

Government (393)
The political system under which a nation-state or a component thereof is governed is called government..
Government function is always some combination of restraint and consent., the degree of each determining overall character. Primitive governments lacked writing and semiautonomous units. They evolved into despotism which survives in some parts of the world in some shape or form to this day. The despots exercised control over the center which was diluted with distance from the seat of government. It was related with the mode of production and tended to fade away with the industrial revolution.
Plato and Aristotle classified government on the basis of group or citizen control, from monarchies to military rule to plutocracy. Athens evolved into limited democracy and Sparta? into military rule.
Plato in the “Republic” started advocacy of rule of law, in laws with division of power between individuals, groups and all eligible male citizens. Romans adopted the system with two consuls and a senate with members from the ruling class which was gradually extended to citizens. Romans were the first to declare separation of the church and the state. In medieval and renaissance Europe secular and religious governments co-existed with varying degrees of influence over each other.
Political philosophers Jean Bodin, Thomas Hobbes and Nicolo Machiavelli supported secular authority and offered the concept of nation-state to balance ecclesiastic rule.
Under absolute monarchies book keepers, secretaries, record keepers transmitted royal decrees and evolved into a bureaucracy which forms the backbone of all forms of government. In a democracy the function is divided into executive, legislative and judiciary and renewal of public mandate at varying intervals.
Dictatorship is established when an organized minority seizes power in military, bureaucratic, clergy or a tribe or an ideological group and develops a following which distinguishes it from tyranny or absolutist rule. Control is maintained by the coercive apparatus of the state which suppresses dissidence and opposition..
Between 12/1653 and 5/1657, Britain was governed by an instrument which legitimized the rule of Oliver Cromwell and his fellow generals which vested executive authority in the lord Protector and a council appointed for life, and created a single chamber parliament with a franchise which favored landowners and excluded RC and Episcopalians.
Primitive government (p 141, vol 20)
Pre-Agriculture-There were few humans (8 million in one estimate). Tribes/villages were association of families headed by an elder, and still be found in Amazon jungles and upper Nile valley.
With the advent of agriculture in Sumer (Iraq), water distribution had to be regulated and calendar required to forecast spring floods. And that required central authority. Heads of village gradually morphed into monarchs and others took over as priests, warriors, tradesmen and bureaucrats. Religion followed to propitiate the legion of gods to protect from disaster and cause rain and give legitimacy to rulers.
Conflict over distribution of water caused wars and armies led by the monarch became important and the drive for empire was born.
This phase lasted 4-5,000 years. Trade spread the system to Egypt and India. China developed independently. By 98-117 CE Emperor Trajan of Rome there was organized government from Britain to China coast, but the threat of barbarians of central Asia lurked. They moved swiftly and with bows and arrows were deadly cavalry. They attacked incessantly but were either repulsed or settled down and accepted ways of organized societies.
Defense of territory and peace required central authority, armies and funs to support them. Literacy supposedly arose to meet requirements of administration, finance and enforcement of ruler’s edicts-bureaucracy. Officials of conquered territory were simply incorporated. Assyria conquered Sumer/Babylon, and in its turn was subjugated by Medes. Medes and Persians were overthrown by Alexander of Macedon. Rome followed and was replaced by the Islamic caliphate. And so on. Wars did not affect the lives of ordinary people.
Logistics dictated that local rulers be left pretty much on their own as long as they paid tribute, and action in case of default was not always successful.
Civilization spread west and north-west out of Asia.
Greece followed with city-states. Greek were Indo-European who built on the work of earlier people like Minoans of Crete. (defeated 1450 BCE) and invaded surrounding mainland kingdom. By 8 BCE they had adopted Phoenician alphabets, began expanding into colonies overseas and developed city states.
Physical isolation necessitated every village/city to be able to defend itself and the community had the first claim on loyalty. Trade led to the rise of Athens, Tyre and Sidon and to funds to raise armies. Athens defeated Persia (480 BCE) in a sea battle and established dominion in Aegean seas.
Monarchies of the East were uncomfortable with the Greek concept of citizenship. Every eligible adult male had to fight for the city and had to be given rights in return. The central question was distribution of powers. Plato favored aristocracy as only a few could understand that the object of politics was virtue. His people Aristotle deemed cultivation of intellect as the highest among human attainments. And could be acquired by only a few and in return would sacrifice their time for the tedious business of government.. but democracy for only free men won.
Results were mixed. Intolerance led to the execution of Plato’s teacher Socrates to dearth, wanton imperialism, denial of citizenship to non-son of soil, even Aristotle and bas9ing their society on slave labor. But it was more representative than any dispensation before or since.
King Phillip of Macedonia built a formidable army and overwhelmed Athens and Sparta.
Rome emerged as the strongest state in Mediterranean after the defeat of Hannibal (202 BCE). Romans gave new word res publica-public thing to politics. Patriotism to city-state rose to greatest heights. The people defended against every invader. Power was shared among the people, aristocrats and consuls who functioned as the executive, elections were held, the first political parties arose and till late the results were universally accepted. Rome proved that the political process of public discussion of policy and election was of the greatest value in itself. With rise of military power and weakness of its neighbors Rome started to believe in its right to rule. (USA since WW II), and that led to military adventurism. By the first century BCE, navy also became powerful and Rome captured all the Mediterranean and all the hinterland around. But soldiers became professional and owed allegiance to generals, rather than to the state and indulged in civil wars. Aristocrats appointed to govern provinces lined their own pockets (current world Indo-Pak differs with the US only in methods, here revolving door, CEOs into government give contracts to own firms).
The republic failed and Caesar Augustus took over as monarch. Caesar’s power base was command of his legions but he understood that naked political power was inherently unstable, reduced military expense and turned his base of support into an organized ruling class, tried restoration of the republic, all power though remained in his hands and true elections not restored. He kept people distracted with chariot races, gladiator contests and enrolled assistance of religion (football, celebrity shows and born again bush). Later emperors insisted on their divinity as a matter of public faith. Roman traditions, nationalism and law survived as invaluable legacies.
Rome over extended itself (USA) and Visigoths overran it in 410 CE.
Dissolution and instability:
But unlike China, other countries in the East which recovered after each devastation the western empire was never restored. In 6 CCE Justinian conquered large parts of the west but his soldiers destroyed more than he could build. In 800 CE Charlemagne , the king of Franks was crowned emperor of the west by the Pope. Later Hohen-Stauffer and Hapsburgs in the 19th CCE Napoleon tried. Britain fell away in 5th CCE. Arabs conquered North Africa and in 8th CCE Spain and invaded Gaul.
Feudalism emerged as an alternative. The Church kept its hold. Effective power, in the absence of an emperor fell in the hands of the military aristocracy. They called themselves nobles and picked up titles like Comte (count), Dux (duke). The new kings did not have large enough base to keep standing armies.. Heavily armed cavalrymen dominated the wars and did not owe allegiance to the king as Roman legionnaires had done. This went on for several hundred years.
Over time strong monarchies developed in England, France and later in Spain. 1050-1300 papacy could dominate the Barons. With trade city-states arose in Italy, Rhineland and low countries.
Nation-state-In the turmoil mutual tolerance and forbearance became necessary. Customs and common law became important in England. Lawsuits became an epidemic, lawyers got together with aristocracy with rights and deeds galore. Idea of rule of law was reborn, and a class system nearly as potent as the caste system in India took over.
By 1500 Kings presided over bureaucracies lar4gely staffed by priests. English and French kings fought with Scotland, Wales, Ireland and later with Alps and Rhineland.
Modern world:
Kings were able to subdue nobles with gunpowder, but it was very expensive. Money was difficult to raise because Tax collection was not effective. Representation in the parliament gave the people illusion of participation and tax collection became easier.
Renaissance’s true symbol was the printing press which made circulation of law easier, increased the size of the literate class, and public opinion came into being, rulers had to pay heed to it and learn to befuddle people..
Reformation-Martin Luther and John Calvin demolished RC Church’s claim to universality. Politics was secularized and tolerance grew in some measure.
Colonization of America offered immense resources to Europeans whose naval power defeated all. Empires, Portuguese, Spanish French, British, Dutch, Swedish-all took advantage.
Absolute monarchies could not compete with countries where the king, the aristocracy and the mercantile class joined hands.
Rise of the parliament in the UK empowered a larger ruling class. William III conceded full power of finance to the house of commons under the principle of no taxation without representation. Temper of the times took care of the divine right of kings. John Locke wrote extensively on the issue. James II fled in 1688 and the parliament passed a fundamental law and country ruled by a combine of the king, and a parliament dominated by country gentlemen. First PM Robert Walpole for 21 years.
Class and party interests, wheeling and dealing have dominated the representative system since.
Britain created self-governing communities on the Atlantic sea coast of America. When Britain tried to impose its will, colonists rebelled., fought 1775-83, declared independence in 1776. It took 12 years to frame a constitution which has worked well? Consent of the governed, in practice of the majority which is elite controlled, in effect of the ruling elite is the key to government legitimacy.
The French had their own revolution in 1789. the monarchy had exhausted its own resources in helping Americans beat the British. To avoid bankruptcy, assembly was called for the first time in 175 years? It rejected the divine right of kings, privilege of the nobility and the RC Church, set up a republic and beheaded the king. A nation-state was created.
The French system endured in spite of setbacks and changes of regime (1814-1970-seven). By the end of mid-19th CCE universal suffrage (men only) introduced. By the end of the century Britain edged to male universal suffrage. Political parties merged. Industrial revolution gave impetus to capitalism.
Nationalism-Prussian and Russians got the message of the French revolution, but struggled with implementing reforms. Kings and aristocrats resisted giving in. the people deluded with the myth of the nation.. National rivalries intensified the competition between states. But peace prevailed for a 100 years, giving Europeans an opportunity to colonize and exploit Africa and Asia. Only Japanese survived and to a lesser extent
China did. Japan defeated China in 1895 and Russia in 1905.
Europe decimated indigenous population in north and South America, Australia and to a lesser extent in New Zealand.
Clash of colonial interest resulted in WW I and take over of Russia by the communists. They believed that the socio-economic theory of Marx and Engels as developed by Lenin were of universal validity.
Lenin’s success found followers in Mussolini, Hitler and Mao. Stalin succeeded Lenin and kept things together till his death in 1953 when after a few transitory rulers Khrushchev took over and made an expose of Stalin’s terror in a party conference. He was eventually ousted and Berzhenev Soviet-China split irremediably damaged the monolithic unity of CP all over the world. CP in India, on the verge of a major election success, was barely able to survive.
A coup brought the CP to power in Afghanistan which was (and is) a socially backward country with 5-10% literacy and ingrown orthodoxy. Widespread unrest followed and the USSR tried to prop up the regime and suffered from its own Vietnam. That drained its resources away.
That together with the inner contradictions of the party, incessant effort of capitalist powers to undermine socialist countries made them unstable. USSR had overextended itself in helping third world countries. The aid unlike the one from the West did not pay dividends of high interest and stranglehold over the assets of the recipient countries.
The west enticed Islamic countries to work against socialism. In fact, given the fact that the rulers were, with few exceptions creations of the west, and totally dependent on the latter for their existence, did not need much encouragement to fall in line. And they fittingly suffered the most from the implosion of the USSR.
In 1985, Gorbachev took over and tried to ease the country out of out of economic distress, but the system disintegrated. He was followed by Yeltsin who dissolved the USSR and introduced the market system and in the process gave away state assets to adventurers most of whom fled the country with its wealth.
Post Mao and Zhao, China adopted market economics outside and to a limited extent inside the country and enticed US capital taking away most of the manufacturing jobs and pushing US and the West into recession/depression.
Post WW II the CP made great inroads in European countries. The system fought back with welfare-statism, most advanced cradle to grave in Scandinavian countries and quite extensive benefits in the UK-national health service, free education, unemployment allowance, subsidized housing etc.
Starting in late 1970s the system started retrenching in the UK under Margaret Thatcher, followed by Blair neo-liberalism. General tend has been towards withdrawal of benefits.
US indulged in witch-hunts in senator McCarthy times, but the CP never achieved the status it did in Europe. The country never adopted welfare-statism. With the collapse of the Soviet Union, the US reigned supreme and adopted interventionist policies. 9/11 gave it the excuse it was looking for. Afghanistan was invaded and pulverized. Iraq bombed back to stone age, though it never had to do anything with 9/11 or al-Qaida.. it turned out that bush bullied and lied his way into the war.
Islamic dispensation WW II, communist take over in Russia gave great encouragement to freedom movements with the left in vanguard. The clash between fascism and capitalism sapped the strength of imperialist powers..
Imperialists left techno backward populace (as a matter of policy), low literacy rate and created division wherever they could (India-Pak), Saudi Arabia, Jordan, Iraq, Lebanon and the gulf states had been a part of Arab nation under the decentralized rule of the Turkish Caliph.
Pakistan adopted an “Islamic” constitution, but an Islamic republic took practical shape only in Khomeini Iran.
India adopted a constitution, secular in spirit and practice, till the resurgence of fundamentalist Hinduism in Post Nehru India.
Under the colonial rule, the subjects could not develop political consciousness as they had been deprived of the political process for 150-200 years. They succumbed, in the absence of a system, to dictators of various kinds, which with out public sanction less able to deal with the problems of underdevelopment, disease, overpopulation and poverty left by colonists. They were ensnared by the capitalist system into military pacts and persuaded to spend inordinate amount of funds for the military leaving little for nation building, education , health, infrastructure or job creation.
Europe did manage to merge its political functions into a union which is making steady progress to a United states of Europe.
Collapse of the USSR led to US adventurism and strife, chaos and civil wars in Eastern Europe and Asian soviet republics.
Government and economy:
-Allocation-19th CCE/1970s and 1980s
-Stablization-20th CCE
-distributive 1950s-1960s
Allocation, spend government money on what. Demand always exceeds the amount that can be raised tax or loans. In a democracy factions disagree on the amount and level of public involvement, but in essence change of government has little impact except in times of crisis. And for a period after that.
Theory of public goods for example a lighthouse can not be excluded. Nuclear weapons, weapons in general and level of army strength are highly controversial. Expenditure is closely linked with profit motive of arms manufacturers and capital in general to use force in getting its way. Arts, parks are given subsidiary status as the capitalists lack the finesse of appreciation of arts or ecology.
Merit goods-Housing for the poor, health care, retraining, urban regeneration. When things seem likely to get out of control and coercive measures might lead to explosion, additional funds are allocated, only to be withdrawn in ‘calmer’ times. Post WW II welfare-statism in Europe gradually curtailed under right and so called left wing governments and under republicans and democrats in the USA.
Cost-benefit-risk analysis, emulating market place-irrigation canals, highways-tolls and taxes.
Public/Private. Till 1970 public expenditure tended to increase. Privatization -sale of public property to private owners leads to increase in cost. Foreign owners strip industries and lessen competition. Airlines and tele-com have been privatized wholesale Monopolization has proceeded apace, media ownership in USA down to 5 from 85 corporations in Clinton time. Water supply, airports. Privatization involves deregulation and veers to monopolization.
Municipal services can be privatized (garbage disposal and fire department. Manufacturing is outsourced.
Savings are not passed on to the public but to private coffers. Assets are sold at a fraction of the real value (blockage of the sale of the steel mill in Pakistan to a subsidiary of Mittal of India led to the sacking of the CJ and in the end Musharraf lost his job. The then PM Shaukat Aziz, a plant of Citibank was the chief promoter of the deal and most likely one of the chief beneficiaries
Government can intervene by allocating tax/duty free zones and regulation/deregulation and wage policies).
Stabilization:
-Full employment benefits
-control inflation
-balance of payment
During the 19thCCE, the only measure was the gold standard. If there was negative balance of payment, gold flew out of the country. Raising the interest rate, and making the credit difficult led to a fall in incomes, price and employment and imports and rise of exports. If positive surplus, Gold came in, interest rate went down, credit restrictions reduced and surplus dwindled. Capital moved from low interest to high interest deficit countries, external stability at the cost of internal one. Surplus countries sold securities on domestic credit markets.
Post WW I unemployment level reached crisis level. (1920s, 20-30% in Britain). J.M. Keynes (and Liberal Party 1928 Britain’s industrial Future).
The Nazi party in Germany helped reduce unemployment and stimulate economy. In Sweden Social democrats increased government expenditure in 1232-34. Herbert Hoover made a limited attempt. Franklin Roosevelt inducted Works Progress administration (2 million workers 1935-41. unemployment was at 25% in 1933, it helped, but WW II brought it down significantly.
J.M. Keynes-General Theory of Employment, interest and Money 1935. market does not lead to full employment or stable prices. Government should intervene. During depression moneyed men kept cash balance, rather than spend. Investors would not find profitable avenues for borrowed funds. Economic stagnation-people in developed countries saved more as income grew. Consumption accounted for a smaller part of national income.
In order to get full employment investment would have to continue to take a larger share of national income.
Post WW II governments pursued high level of employment (William Beveridge-Full employment in a Free society, also Employment act of 1946. “…Policy and responsibility of federal government…promote maximum employment” council of Economic Advisers established.
Fiscal policy tries to control individual and companies by spending/taxation decisions of spending money for example on construction, change tax levels. Government to decide whether it should spend more than it receives or less, can attempt to cushion certain regions.
Stabilization policy is of 2 types- 1 discretionary and 2 automatic
-Discretionary- open markets, change in reserve requirements and discount rates, change in tax rates, and government expenditure.
-without deliberate intervention by government, private spending tends to decline with increase in commodity price and relations between tax revenue and cyclical economic changes.
Types of time lag-recognition lag, decision lag, effect lag
Practically everything the government does has some distributive effect, health care provision on the sick, rich affected.
Argument if government should seek to redistribute income. Welfare system, higher taxes, burden on the rich with effect on work effort.

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