Banks, drug makers, arms dealers, politicians, the media, bonuses, amoral socio-economic behaviour, and more are frightening reminders of why we need rules, accountability, responsibility, regulation, and a strong public sector serving the greater good
Enough of Privatisation and Deregulation: Time is Now for Hope, Empathy, Compassion and the Common Good
As it has been noted, and indeed discussed and analysed extensively here within this Blog postings, in the last many years Britain’s establishment has lurched from the disaster of the Iraq war to the disgrace of parliamentary expense fiddling, media phone-hacking, corruption in banking and finance, and most recently the GlaxoSmithKline fraud and corruption case. The house of cards, built on the false ideology of neo-liberalism, and put together on shifting sands has now fallen apart, piece by piece; blown away by the forces of greed, individualism, selfishness, and consumerism.
The neo-liberal, free market-based development paradigm- some of whose staunchest adherents had gone as far as declare that “Greed is good” - has taken a battering with the continuing and deepening financial market meltdown.
However, we cannot turn this sinking ship away from the stormy waters to a calmer environment, if we do not try to discover how on earth we got to where we are today: the wasteland that has become of Britain.
Moreover, as well as learning from the past, we should begin to work for a new paradigm, where collective outcomes come not from individuals pursuing their individual greed, but from communities whose individual members work collectively for the common good.We must acknowledge that economic and business decisions impact many aspects of our lives, whilst they also raise important moral and ethical concerns which call into question what it is to be a human being. We should argue for the need for decision-makers (contrary to what is mostly practised today) to concern themselves with the world of heart, mind and spirit, as well as the economic and financial issues. Although self-interest is an important source of human motivation, driving the decisions we make in the marketplace every day, those decisions nevertheless have a moral, ethical and spiritual dimensions, because each decision we make affects not only ourselves but others too.
Returning to my earlier question, “How on earth we got to where we are today: the wasteland that has become of Britain?” A simple answer for me is as follow:
Do you remember that Margaret Thatcher, the so-called Iron Lady! She told the Brits that she was going to put the “Great” back into the “Great” Britain. Do you remember? Then, she told us this can only happen if we accept and implement the “Washington Consensus”, the so-called dreaded neo-liberalism. She told us that there was no alternative. She told us we will all prosper and develop more fairly and equitably. She won election after elections. Everything was privatised, deregulated, self-regulated, and sold off to the highest bidders. Industry, manufacturing, (the real economy) were undermined, neglected and ultimately destroyed. Instead, the banks and the bankers were encouraged to rule the world. The economists with no principles and values were “bought” and the business schools, such as Harvard and Columbia were showered with money to act as “Cheer Leaders” for neo-liberalism (see the Inside Job for evidence). Communities were dis-mantled and dis-organised. We were told that there is nothing as a society and community. We are all in it just for ourselves, we were told. Destructive competition at the expense of life-enhancing cooperation, collaboration and dialogue was greatly prompted. We were told to say no to love, kindness, generosity, sympathy and empathy and say yes to selfishness, individualism and narcissism, as these values will fire the engine of capitalism and wealth creation!
In the process of neo-liberalism they have privatised the profits and socialised the costs. The “Public” has become the risk-taker, whilst the “Private” is the profit-taker. The “Private” has given itself huge salaries, bonuses and the golden-parachute (rewards for failure, wrong-doings and being caught red-handed). In turn the “Public” has been given the un-regulated ability to borrow and borrow; making it feel as it is doing all right, it is getting rich!! And when things went pear-shaped, the “Private” was protected and nationalised, whilst the “Public” has lost its homes, jobs, pension, healthcare and more.
In all, champagne and caviar for the “Private”, whilst there is nothing but austerity and blame for the “Public”. One could say hell-on-earth for the “Public” and paradise-on-earth for the “Private”.
Given the above, the pertinent question now should be: How to turn this sinking ship away from the stormy waters to a calmer environment? And how may we begin the journey from the current wasteland to the Promised Land?
Steps to the Promised Land*
*(Please note: as it has been noted “the Promised Land is not so much a geographic place as it is a hope and a vision of a just social order. Modern society has many wondrous features, but it certainly is not the Promised Land in its full glory)
1- Begin a journey of self-rediscovery
In order to heal ourselves, to heal our Mother Earth, to propose solutions to global crises of business, economics, ecology, education and more, we must learn, once again, The Art of Living in a loving and caring World. We cannot begin this journey, without, first and foremost, finding inner-peace and contentment ourselves first. We should acknowledge that a truly genuine and sustainable world is grounded in what is most valuable in life: love, meaningful relationships, family, happiness, freedom, sufficiency, comradeship, volunteerism, altruism, cooperation, kindness, generosity, sympathy and empathy.
We must reorient economics, business and the world of education and work towards a truly meaningful and value-based development of human well-being, in balance with the well-being of nature, not simply the pursuit of unbridled economic growth, consumerism and materialism. The world of autistic economics and business must change and only then we can claim that we are genuinely pursuing a wealth creation model that is providing for the happiness and the good life for the good of all.
2- Admit that modern economics and neo-liberalism have failed us
I wish to suggest that now is the time to acknowledge the failures of current economic models and theories, as well as the narrowness of market fundamentalism. The times demand a revolution in economic thought, as well as new ways of teaching economics, business and management, amongst others. In many respects this means a return to the soil in which economics was initially born, moral philosophy amid issues and questions of broad significance involving the fullness of human existence.
To begin this process, I suggest the following:
3- Begin a Journey to Wisdom
We should acknowledge that economics and business should be all about human well-being in society and that this cannot be separated from moral, ethical and spiritual considerations. The idea of an economics which is value-free is totally false. Nothing in life is morally neutral. In the end, economics cannot be separated from a vision of what it is to be a human being in society. In order to arrive at such understanding, my first recommendation is for us to begin a journey to wisdom, by embodying the core values of the Golden Rule (Ethic of Reciprocity): “Do unto others as you would have them to do to you”. This in turn will prompt us on a journey of discovery, giving life to what many consider to be the most consistent moral teaching throughout history. It should be noted that the Golden Rule can be found in many religions, ethical systems, spiritual traditions, indigenous cultures and secular philosophies.
4- Now is the Time for a Revolution in Economic Thought
Here, strangely enough, I find myself in total agreement with Hayek when he wrote:
“An economist who is only an economist cannot be a good economist”. Therefore, the focus of economics should be on the benefit and bounty that the economy produces, on how to let this bounty increase, and how to share the benefits justly among the people for the common good, removing the obstacles that hinder this process. Above all else the purpose of the economy is to provide basic human needs as well as the means of establishing, maintaining, and nurturing human relationships while dealing justly with future generations (Sustainability) and ethically with all life on earth (Ecological Balance).
Moreover, economic investigation should be accompanied by research into subjects such as anthropology, philosophy, politics, ecology, environmental ethics, and theology, to give insight into our own human mystery, as no economic theory or no economist can say who we are, where have we come from or where we are going to. All human beings and all species must be respected as part of the web of life and not relegated to narrow short term economic interests, commodification, or exploitation, as has been the case for the past few centuries.
In order to be for the common good, we must admit that, there is more to life than economics, more than the so-called rational and efficient market: the market knows it all mentality, which has brought us all such a bitter harvest. We must realise that we should do our utmost by uniting faith and knowledge, love and reason, heart and mind, the human community and the community of nature.
5- We must become Bridge-builders and Encourage a Dialogue of Civilisations
We must undertake the task of building a bridge between East and West. We must encourage a dialogue of civilisations, cultures and faiths. We must encourage a multi-disciplinary approach to problem solving. Above all, our paths must be to unite love and intellect. This, in my view, can be a great path of dialogue between East and West, and between “the modern” and the indigenous or aboriginal. Pursuing such a dialogue will lead to a more relevant and true economic model, in harmony with the deepest human values.
In addition, the so called modern world (both East and West) has much to learn from the spiritual and cultural values of the worlds many indigenous peoples, both past and present. There exists much wisdom among the indigenous, containing lessons in sharing and equality and justice which can help draw ‘modern’ people into engagement with the deeper realities of their own dominant cultures. Also, people who live close to the earth, who possess an earth-based spirituality typically view themselves as part of nature, part of the earth, part of a community of species as well as being part of the human community.
Among the indigenous not only do human beings derive tremendous benefits (physical, psychological, and spiritual) from nature, but all the elements of nature, (people, animals, plants, forest, rocks and streams) are regarded as living beings to be respected, reverenced, and to be in relationship with. These are the types of insights the world needs today in order to construct an environmental ethic which will allow us to enable an abundant flourishing of biodiversity on earth not only because we benefit from such diversity but also because it is right and moral.
6- Now is the Time for a Revolution in the Teaching of Economics
The teaching should be far more value-based, reflecting the real world, that is not mathematical, mechanical and robot- like. It must be people and nature based. In short, in the wise words of E. F. Schumacher “economics as if people mattered”, as described in his acclaimed book “Small is beautiful”.
The teaching of economics should enable the students to discover how they can make the economy serve the interests of society, not the other way around, as it is mostly the case today. They should be taught that a sustainable and prosperous global economy needs to be for the common good, in which a fair society and the environment accompany profits. The failure of markets, institutions and morality during the current financial crisis has shown that the emergence of global capitalism has brought a new set of risks demanding an ethical, moral and spiritual framework.
Thus, it is vitally important to teach our students that humanity flourishes not only in a culture of respect for the individual, but that the common good has priority over individual interests. They should acknowledge the supremacy of collective values over individual ones. “People don’t create companies solely in a marketplace. They are organisations that are built in a social environment”.
Sustainability should be at the heart of business thinking. The view that maximising profit at the expense of everything else is at the heart of a “good” business is crude, short-sighted and self-defeating. The world of business and finance are paying a heavy price for their misguided policies by failing to grasp a simple fact that the marketplace is not just an economic sphere, but, “it is a region of the human spirit”.
It should be acknowledged that the economic and financial collapse is nothing but a collapse of Virtue, and thus Calls us to Grace and Wisdom and return to a more soul searching times, when we knew that wealth creation is important, but we also knew that more important than wealth creation is to know why wealth is created for, how is it created and when created to what use it is put to.
In short, economics must once again be reunited with its original roots, namely, morality, ethics, and moral philosophy. We must highlight the moral bankruptcy of believing that economics and economy have nothing to do with morality. See below:
“The Social Responsibility of Business is to Increase Its Profits, whilst the businesses' sole purpose is to generate profit for shareholders” -Milton Friedman
“Businesses do not have a natural propensity to do good. What is natural for them is to minimise costs and maximise profits”- Editorial, The Economist, 24 June 1995
"The only reliable, durable and perpetual guarantor of independence is profit." – James Murdoch, Chief, News Corp
Given the bitter harvest that this destructive, inhumane and untruthful philosophy has brought us all, it is vitally important to recall that economics was not always divorced from moral and ethical and philosophical considerations.
Let me quote you a passage from a book, “Promoting the Common Good”, that I co-authored a few years back:
“Economics, from the time of Plato right through to Adam Smith and John Stuart Mill, was as deeply concerned with issues of social justice, ethics and morality as it was with intrinsic economic analysis and questions of price theory. Most economics students today learn that Adam Smith was the ‘father of modern economics’ but not that he was also a moral philosopher. In 1759, sixteen years before his famous Wealth of Nations, Smith published The Theory of Moral Sentiments, which explored the self-interested nature of man and his ability nevertheless to make moral decisions based on factors other than selfishness, such as empathy and the desire for approval from others.
In The Wealth of Nations, Smith laid the early groundwork for economic analysis, but he embedded it in a broader discussion of social justice and the role of government. Students today know only of his analogy of the ‘invisible hand’ and his advocacy of free markets. They ignore his insight that the pursuit of wealth should not take precedence over social and moral obligations, and his belief that a ‘Divine Being’ gives us ‘the greatest quantity of happiness’. They are taught that the free market as a ‘way of life’ appealed to Adam Smith but not that he distrusted the morality of the market as a morality for society at large. He neither envisioned nor prescribed a capitalist society, but rather a ‘capitalist economy within society, a society held together by communities of non-capitalist and non-market morality’. As it has been noted, morality for Smith included neighbourly love, an obligation to practice justice, a norm of financial support for the government ‘in proportion to [one’s] revenue’, and a tendency in human nature to derive pleasure from the good fortune and happiness of other people”.
In all, it is now clear that, capitalism for the 21st century needs a fundamentally renewed morality to underpin it, urgently requiring a new and more relevant definition of a value-based “Bottom Line”, to which I turn below.
7- Now is the Time for a new definition of the “Bottom Line”
We should acknowledge that the new bottom line must not be all about economic and monetary targets, profit maximisation and cost minimisation, but it should involve spiritual, social and environmental consideration. When practiced under these values, then, the business is real, viable, sustainable, efficient and profitable.
Therefore, the New Bottom Line that we should tell the students now could read as follow:
"Corporations, government policies, our educational, legal and health care practices, every institution, law, social policy and even our private behaviour should be judged 'rational', 'efficient', or 'productive' not only to the extent that they maximize money and power (The Old Bottom Line) but ALSO to the extent that they maximize love and caring, kindness and generosity, ethical and ecological behaviour, and contribute to our capacity to respond with awe, wonder and radical amazement at the grandeur and mystery of the universe and all being."
8- Now is the Time for Globalisation for the Common Good (GCG)
We live in difficult and troubling times, facing unprecedented global challenges in the areas of climate change and ecology, finance and economics, hunger and infectious disease, international relations and cooperation, peace and justice, terrorism and war, armaments and unparalleled violence. It is precisely in times like these – unstable and confusing though they may be – that people everywhere need to keep their eyes on the better side of human nature, the side of love, compassion, trust, gratitude, and empathy, rather than hatred and injustice.
Renewing our faith in the universal character of human values and restoring that which is human to its rightful place at the heart of the globalisation process and of society, whilst directing the decision-making path towards the Common Good must now be at the heart of all we do.
Look all around you, after decades of pursuing the values of neo-liberalism such as individualism, selfishness, egotism, consumerism, and materialism-to name but a few- and the subsequent and consequent outcomes-financial collapse, ecological degradation, lower morals, higher corruption and nepotism, etc, etc- can you see any alternative but pursuing the Common Good?
Genealogy of the Common Good: A Bird’s Eye Summary
The theological and philosophical origins and sources of the common good are indeed very well documented. As it has been observed, the common good is an old idea with new-found vitality in the global public discourse. Its direct lineage includes philosophers, theologians, and statesmen from various ethical traditions. Debates about the common good allow participation by diverse schools of thought and provide a unique opportunity to build the broad political will necessary to meet today’s international moral obligations.
Even where the term itself has not appeared, the underlying values of universal human dignity and a collective approach to our greatest human challenges resonate throughout ethical traditions. The global common good challenges individual traditions to work across boundaries of faith and geography to arrive at a shared moral vision for our highly interconnected world.
Aristotle was the philosophical father of the common good. In his quest to set out the ethical precepts for developing virtuous citizens and building just societies, he developed the idea that both individuals and governments ought to work for the same virtuous goals. By bringing humanity back to its shared common good, he developed an ethical system that attempts to address the shared interests of diverse societies. Aristotle could not conceive of just government as divorced from this pursuit of the common good.
St. Thomas Aquinas played a critical role in wedding Aristotle’s concept to the Christian tradition. In addition to building on the biblical idea that one should “not seek that which is profitable to myself, but to many, that they may be saved,” Aquinas makes the important point that the common good and the good of individuals are not in opposition. In fact, “He that seeks the good of the many seeks in consequence his own good.”
Contemporary Christian sources, both Catholic and Protestant, have built on this long tradition of advocating government for the common good. Vatican II speaks of “the increasingly universal complexion” of the common good, given our growing human interdependence, and argues that we have duties not just to our countrymen but “with respect to the whole human race.”
In Protestant traditions the concept of the common good rests on similar foundations of universal human dignity and a shared responsibility to build just political systems. Old Testament injunctions to “Let justice roll down like waters” and in New Testament “Whatsoever you do unto the least of these you do unto me” exemplify religious commands to work for the common good.
The common good resonates beyond Christian traditions as well. The term has rich resonance in the history of Jewish thought and in contemporary Jewish practice. The Jewish tradition of working for justice and the common good within the covenantal community is extensive:Among the 613 commandments laid out in the covenant with Moses are injunctions to protect the disempowered, especially the poor, widows, orphans, and children. By acts of tzedakah (doing justice) the people act in accordance with God’s will and fulfil their obligations to the covenant. The related concept of tikkun olam (repairing the world) is also prominent within the contemporary Jewish community.
Like its two Abrahamic cousins, Islam is rich in ethical injunctions grounded in the idea of the common good. The presence of zakat (almsgiving) as one of the five pillars of Islam, and sometimes referred to as one of two cardinal obligations, makes it clear that an ethic of mutual support is at the core of the Islamic faith. There is a strong sense that good government is one that can provide for the poor and needy. The idea of maslaha, translated as either “public interest” or “common good,” guides governmental responsibility to provide for public needs. It has featured heavily in the writings of modern Muslim reformers throughout the Islamic world.
Just as essential to the common good as this charitable ethic is Islam’s capacity to show respect for pluralism and its insistence on universal human dignity. Humans share a fitra (noble nature) even outside of the Islamic community, and thus have access to God’s truth. Prophets are sent outside the Islamic community “so that humankind might have no argument against God” for excluding one tribe. Our human diversity is the express will of God, and as such, working together for the common good seems a natural outcome: “For every one of you, We have appointed a path and a way. If God had willed, He would have made you but one community; but that [He has not done in order that] He may try you in what has come to you. So compete with one another in good works.”
Conceptions of the common good abound in Eastern traditions as well. In all, these rich traditions of religious and philosophical thought have pervaded societies throughout the world, establishing the foundations for civilizations and governments.
In addition to its religious roots, the concept of the global common good is based in civic values that can unite our troubled world and guide our actions in serving for the common good.
Enlightenment philosopher Immanuel Kant expressed similar truths when developing his cosmopolitan ideal of the international community. “Since the narrower or wider community of the peoples of the earth has developed so far that a violation of rights in one place is felt throughout the world, the idea of a cosmopolitan right is not a fantastical, high-flown or exaggerated notion.”
However, discovering common ties among varying belief systems is hardly the most arduous part of bridging religious, ethnic, and geographical divides. The greater challenge is to apply the ideas of the global common good to practical problems and forge common solutions. Translating the contentions of philosophers and religious scholars into agreement between policymakers and nations is the task of statesmen and citizens, a challenge to which Globalisation for the Common Good Initiative (GCGI) has adhered itself to, the purpose is not simply talking about the common good, or simply to have a dialogue, but the purpose is to take actions, to make the common good and dialogue to work for all of us, benefiting us all.
Guided by the principles of hard work, commitment, volunteerism and service; with a great passion for dialogue of cultures, civilisations, religions, ideas and visions, at an international conference in Oxford in 2002 the Globalisation for the Common Good Initiative (GCGI) and the GCGI Annual International Conference Series were founded.
The Globalisation for the Common Good Initiative Annual Conference series have ranged far across the world through Oxford, Saint Petersburg, Dubai, Nairobi/Kericho, Honolulu, Istanbul, Melbourne, Chicago and Thousand Oaks, California. The 10th Annual Conference, once again, is returning to Oxford in September 2012.
The GCGI conferences have created and continue to create an ever-widening international community of scholars, researchers and experts, forging links and establishing dialogues across national, cultural, religious, and academic boundaries, and putting into practice the movement’s core philosophy: that globalisation need not be defined merely in terms of impersonal market forces, but that an alternative type of globalization can be a power for good, building spiritual bonds that can unite humanity and bring different cultures, civilisations, faiths and academic disciplines closer together.
Today the GCGI is considered a leading progressive think tank, producing cutting-edge research and innovative policy ideas for a just, democratic and sustainable world. For the last 10 years, GCGI has helped shape the progressive thinking that is becoming the political centre ground. Independent and radical, we are committed to combating inequality, empowering citizens, promoting social responsibility, creating a sustainable economy and revitalising democracy. Best known for our influential work on Globalisation for the Common Good, Business Ethics and Corporate Social Responsibility, Value-led Economics and Business Education, Ecology, Environment& Sustainable Development, Interfaith Dialogue and more, we now have significant cooperative projects with a number of universities, think tanks and civil societies in many countries around the world. GCGI’s media programme and its influential online Journal, Journal of Globalisation for the Common Good, hosted at Purdue University, has since its inception in 2005 made significant contributions in furthering progressive goals in education and media policy.
What the GCGI seeks to offer- through its scholarly and research programme, as well as its outreach and dialogue projects- is a vision that positions the quest for economic and social justice, peace and ecological sustainability within the framework of a spiritual consciousness and a practice of open-heartedness, generosity and caring for others. All are thus encouraged by this vision and consciousness to serve the common good.
The GCGI is a non-profit making initiative with no formal income, capital, seed money, or endowment. It has no bank account, cheque book, team of fund-raisers or accountants. This self-sustaining funding mechanism has been a key lynch pin of our independence and integrity. At no point in our history has the GCGI been so reliant on external sources that if external funding is removed, the GCGI cannot continue.
The most precious capital of the GCG is the calibre of its friends and supporters, including the universities that have hosted our annual conferences, and more. With their love, trust and goodwill many have committed themselves as partners in shared vision, to support the work of the GCGI in a spirit of moral, spiritual and intellectual collaboration.
Reflecting upon our shared journey for the common good, it is amazing to me that ten years have gone by so quickly. What began as a simple idea to share the practical wisdom of the common good, dialogue, love, generosity, kindness, and more has blossomed into an internationally recognized non-profit organization that has become a leading resource “inspiring people to do great things for the common good”.
From the very beginning, I was confident of ultimate success. If we could reach-out to people around the world and become an all-volunteer network of individuals, I thought growth would follow organically by focusing on our vision and mission. And it has.
As you might imagine, in the initial days when we began sharing our vision of doing things for the common good, we were met with a great deal of scepticism, apprehension, and thankfully, some warm embraces and love. We were energized by all of those early experiences and continued to find ways to build ideas, programmes and initiatives around our main message and theme of Globalisation for the Common Good.
Perhaps our greatest accomplishment has been our ability to bring Globalisation for the Common Good into the common vocabulary and awareness of a greater population along with initiating the necessary discussion as to its meaning and potential in our personal and collective lives.
In the last ten years, so similar to all those who have taken a values-based-journey of self-discovery, I too have realized, “From the great oceans, vast plains and highest mountains that sustain our fragile and vital ecosystem, to our village friends and city dwellers that bring meaning to our common journey, we are quickly realizing that everyone and everything is interconnected and interdependent.
With each passing day, it is also increasingly evident in every corner of our world that great change is upon us and that by standing together in mutual respect, honour and dignity for one another, we will answer this call with creative, viable and sustainable solutions.
We must take the necessary steps now to reach out to our fellow humans and extend our hand in forgiveness, acceptance and genuine friendship. Our choices shall be made from compassion while embracing the richness of our amazing diversity. The love and acceptance we have for ourselves will be the source of our strength to assist others. Together we can and will make a difference through love.
These necessary changes may challenge us to the depths of our courage and test the very essence of our personal character, yet with each ensuing breath we shall remain in love and this love will be the very basis of a new era of peace and abundance, equality and goodwill for all”.
In short, at Globalisation for the Common Good Initiative we are grateful to be contributing to that vision of a better world, given the goals and objectives that we have been championing since 2002. For that we are most grateful to all our friends and supporters that have made this possible.