Between a capitalist rock and a democratic hard place
Capitalism and democracy, for all their beauty, are also brutal systems, subject to the volatility and absurdities of human decision making. Guided by the profit motive and the exclusionary power of capital, capitalism is a powerful but difficult beast to tame and put to work for the well-being of the general populace. It is a web which hangs together as a complex whole, where a disturbance to one part will send the whole thing moving, sometimes gently and sometimes violently. Democracy, for all its promises of inclusion and collective decision making, is tough work. Democracy done poorly ends with Trump and Johnson at the helm of affairs. But it is important work, for democracy not done at all ends with military dictators and Putin.
And right now, the PTI and the Prime Minister are stuck between a capitalist rock and a democratic hard place. They are feeling the heavy burdens of democratic governance and managing a capitalist economy. They are learning that democracy and capitalism are both works in progress, and both require that people be persuaded, because we cannot force people — whether to invest or to agree with our point view. People forget that the big shift in Keynesian thinking about the economy is not just about the role of government, but thinking about decision making under conditions of uncertainty rather than scarcity. (For example, inflation is not just a problem because of how it eats into buying power, but also because it triggers uncertainty about the future. It puts people in a position where they don’t know what to do, because they don’t know what the future will bring, and how they will cope with it.) None of what the government is doing is going to help settle fears about tomorrow. Both in its words and actions, it is not being very persuasive.
And the Prime Minister knows people must be persuaded. Hence the desperate speeches and subsidies (“Stung by criticism, Khan rolls out massive subsidy plan”). Hence an “industrial policy” was promised in the February 28 speech. What was on offer in the March 1 speech however was an industrial “package” which seems to be little more than an amnesty scheme for now. (Industrial “package”, as if it was a pay-as-you-go phone data bundle.) I’m no fan of the National Security Policy document, but at least a similar effort to articulate an industrial policy could have been undertaken. The government knows that for all this talk of neutrality and not taking sides in foreign policy, the public will not stand neutral come election time. They will take sides. There is no facade of neutrality at the voting booth.
Even faithful supporters must be kept on side. Following the February 28 speech, a PTI and Imran Khan supporter admitted to me his frustration that the Prime Minister’s message is not clear, that everything is jumbled up. Recall that the PTI once used to be all about young people. Then it was all about the overseas Pakistani. And now the business community. Imran Khan is pro-profit, admitting in yesterday’s speech that support for the business community should have become the focus earlier. He is also pro-capitalism. Welfare state type capitalism, but capitalism still. And you cannot tell people what to do in capitalism, as much as the Prime Minister might want to. And this is why he and his party are feeling the full force of the difficulties of democracy and capitalism, wanting to make things better but without having to deal with the inconvenience of facing political opposition and persuading the public. They are also trying to keep everyone happy without appearing to pick sides.
While I agree with many of the insights of Marxian political economy and do not deny the sharp analytical edge from which those insights are yielded, for me the more relevant writer for our time is not Marx but Keynes (the godfather of managed capitalism), who himself lived through a time of economic crisis, war and authoritarian strongmen (or “madmen in authority”, as he put it in the concluding chapter of The General Theory). One of my key take-aways from my reading of Keynes is that in modern capitalist economy and politics, one should pick a side. (See his essay Am I a Liberal?.) Amidst all the NATO whataboutery, neutral foreign policy and whether or not the Prime Minister’s visit to Russia was a success, one image was crystal clear. At the center of this image was our prime minister. One would have thought that Imran Khan — with his legendary status as leader of cornered tigers — would love, admire and champion the cause and fighting spirit of the Ukranians at this time, just as he was championing the breaking of “shackles of slavery” in Afghanistan last year. Instead he was reduced to a man beside himself with joy at having landed in Moscow to meet Putin. So much for democracy and capitalism.