Political Economic Analysis

Analytically, the necessity of connection between "red" and "green" politics is illuminated in modern political economy. The writing of James O’Connor, an American Marxist who founded the journal Capitalism, Socialism, Nature, is particularly important in this regard. As O’Connor notes, the basic conflict in capitalism— generating its "first contradiction"—is the tension between capital and labour. Capital hires labour, not vice versa. Since the economic system depends on the exploitation of labour by the owners and managers of capital, there are relentless pressures to raise productivity while keeping wages down. But profitability also depends on there being adequate demand for the goods and services produced. State expenditure contributes to that systemic requirement but the "tax revolt" by the wealthy has made its continuing expansion difficult to finance. Hence the emergence of what O’Connor famously called "the fiscal crisis of the state".

Now a second contradiction is evident. This concerns the exploitation of nature, as well as labour and society more generally. To the extent that the owners and managers of capital exploit nature by depleting resources and creating pollution in order to reduce their costs of production, they pass on the costs of reproducing the economic system. As O’Connor puts it, "the form which global capitalist development has taken since the second world war would have been impossible without deforestation, air and water pollution, pollution of the atmosphere, global warming, and the other ecological disasters; without the construction of ‘mega-cities’, with no regard for congestion, rational land use and transport systems, and the social costs of inappropriate housing and rising rents; and finally, without the reckless disregard for community and family health, physical and emotional, education, and other components of the socialized reproduction of labor power (not to speak of the welfare of future generations)." These are the costs of capitalist economic expansion that are "externalised" on to the society and the environment.

Because the social and environmental costs are so diverse, it is not surprising that the political movements arising to contest these processes are similarly diverse. Whereas the "first contradiction" identified by O’Connor generates the familiar politics of labour and trade unions, the "second contradiction" spawns a "green" politics. In other words, the material conditions of this stage of capitalist development make a "red-green synthesis" the relevant response for these seeking a radically different alternative.

But we must go beyond this materialist political economic analysis to a recognition of the concurrent ideological issues. We need to reflect on what are the "red" and "green" ideals. This is particularly important for socialists because the great international experiments of the twentieth century largely ended in disappointment and disillusionment. "Red" came to be associated with the command-administrative variation on the socialist model, with its authoritarian tendencies, abuses of human rights and environmental degradation. It is important to rescue broader socialist ideals from that particular historical experience. It is similarly important to reflect on whether these socialist ideals can be blended with "green" concerns that sometimes seem to sit uncomfortably on the left-right ideological spectrum.

The Socialist Objective

What are the fundamental goals of the socialist tradition? I laboured over this question in writing my book Changing Track: a New Political Economic Direction for Australia, coming to the conclusion that socialism has five continuing "in principle" appeals:

• Equity—establishing a classless society in place of the increasingly unequal society we now have;
• Rationality—the use of economic resources more systematically to serve our social goals;
• Democracy—extending beyond periodic elections into our day-today lives as workers, students, consumers and citizens;
• Solidarity—recognizing common interests and the need for processes of mutual support and cooperation, rather than divisive forms of competition;
• Harmony—living in balance with the environment, thereby linking the socialist perspective with ecological concerns.

All five ideals remain inspiring. Their reaffirmation is an important counter to the widespread belief that "socialism is dead". What is currently dead is the Leninist model for the achievement of these goals. It had its important historical moments that should be acknowledged and honoured. But the view that revolutionary change can be engineered by a "vanguard party", seeking to shake the masses out of their "false consciousness", doesn’t have much credibility today.

Meanwhile, the social democratic tradition seems to provide little in the way of an inspiring alternative either. Social democracy has made substantial gains by tempering the excesses of the capitalist economy with regulation, public provision of essential services and redistribution of income. But many of those achievements have been eroded in the last two decades. Labourist parties like the ALP that claim to operate in the social democratic tradition seem to have responded by moving further away from the grand ideals, focusing instead on the continuously pragmatic concerns of shortrun electoral advantage. The great historical socialist dichotomy of "revolution versus reform" seems thereby to have been resolved by substantial disappointment on both flanks.

...some people are more or less permanently unemployed while others are working increasingly long hours...

However, the effects of neo-liberalism have created material economic conditions conducive to the embrace of some sort of alternative. Therein lies the dialectal process of social and political change. An increasingly unequal, insecure and unsustainable society is a fertile breeding ground for alternative politics. And it is not difficult to identify some possible elements in an attractive alternative political economic policy program. As I argued in Changing Track, one priority could be the equitable redistribution of working time, redressing the current situation where some people are more or less permanently unemployed while others are working increasingly long hours. A second priority could be reform of the taxation system to make it more progressive, through taxing accumulated and inherited wealth, broadening the coverage of income tax and removing concessions which are of greatest value to the already rich. Third, we need to press for restructuring of energy use, changing our patterns of transport, housing, and urban form so as to make them more compatible with high environmental quality. Fourth we need a national investment scheme to channel superannuation savings more systematically into productive and ethical investment, including restructuring of industry for ecological sustainability.

These are practical examples of the principle of radical reformism. As the French social scientist André Gorz argues, a radical reformist politics "defines intermediate strategic objectives, the pursuit of which meets the urgent needs of the present, while at the same time prefiguring the alternative society that is asking to be born". This is what is needed to make the grand socialist ideals relevant to the formulation of political strategy in contemporary capitalist society.

Green Goals

Green politics fits well with this radical reformist inclination. Green criticise capitalist values and practices because of their rapacious relationship to the environment and their systemic tendency to extend the "commodification of social life". The emphasis is on challenging the processes whereby economic interests reshape both society and nature at the expense of social and ecological sustainability. Hence the need for a fundamental "values revolution" that can be pushed along by practical steps to establish more balance between economic, social and ecological concerns.

The media commonly stereotypes "greenies" as extremists, willing to protect a tree whatever the economic benefits to be derived from felling it. that, just as suffragettes were once willing to chain themselves to railings or even die for the cause, green activists will often take extreme measures publicise a particular environmental concern. But centre of gravity within the green movement is the pursuit of more balanced outcomes, blending ecological integrity with a more equitable society and more democratic control over economic institutions.

...support for the Greens as a political party is now significantly re-shaping the Australian political scene...

The support for the Greens as a political party is now significantly re-shaping the Australian political scene. The growth in electoral support is partly a capture of the support previously enjoyed by the Australian Democrats. However, in my judgement, it also involves something more profound. It is a challenge to the mixture of neoliberal ideologies and political pragmatism that has dominated mainstream politics. So the Labor and Liberal parties have more to fear than the short term electoral challenge and the loss of a parliamentary seat or two. In the longer term they will have to face up to the significance of a new attitude to politics. Environmental issues necessarily become more central. Indeed, a common perception of the Greens is that they are concerned primarily, if not exclusively, with environmental issues. Certainly, the origin of the Green Movement in Australia was in the struggles in the forests of Tasmania, and subsequently in other States, contesting assaults on the natural environment. But the concern with urban environmental issues is also pervasive now. More generally, social and economic dimensions of the Green agenda have become equally important. Bob Brown’s current personal political standing, for example, now derives as much from his consistently progressive humanitarian stand on issues such as the treatment of refugees and the unwarranted invasion of Iraq as it does on his environmental activist credentials.

The Green challenge has an important ethical dimension and a holistic character. It stresses the interdependence of environmental, social and economic issues. The central principle is sustainability. For us to have a sustainable society requires not only that its members live reasonably in harmony with each other, but that the economy on which it is based have a harmonious relationship to nature. This is a tall order. The Greens are currently taking the lead in responding to the challenge, exploring what economic, social and environmental principles and practices can take us forward. Perhaps it is the fundamental nature of this challenge that explains why the mainstream political parties feel so threatened. Enlisting Peter Garrett may be smart electoral politics for the ALP but it remains to be seen if it leads to any more general "greening" of Labor.

Progressive Politics

Of course, building a successful social and political movement requires more than theoretical propositions and ideological reflections. A practical building of social forces is needed. But there are foundations on which to build. The labour movement is still the most powerful force in opposition to the power of capital. Only a quarter of the Australian workforce is unionised though, and the proliferation of part-time and casual work makes it harder to forge strong unity across the class of labour. Moreover, the battle lines are not sharply drawn. Many workers own some capital, even though this may be miniscule compared to the wealthy elite, which creates some ambiguity of class allegiance. Workers are affected by environment quality too, including housing and transport concerns as well as these relating to the natural environment.

...what is needed is a fundamental "values revolution"...

The institutions of labour can, do, and must co-operate with other progressive political movements that do derive their identity and power from a clearly defined class base. Gender and ethnicity are important seams social division that also form bases for political activity. The peace movement, and to a significant extent also environmental movement, also have a cross-class character. Such social movements often raise particularly profound questions about the dominant ideologies practices of individualistic consumer capitalism.

They indicate that what is needed is a fundamental "values revolution", to use one of Jack Mundey’s familiar expressions. Contesting neo-liberalism requires emphasis on collective concerns that have a social, ecological, cultural and spiritual character, as well as a political economic focus.

Sometimes there is a tension between the labour movement’s traditional concern with workplace issues, including wage-profit relativities, and challenges from social movements to the values underpinning current political economic arrangements. We must find ways to bridge these concerns and make the diversity a strength, not a problem. After all, it is not surprising that the numerous adverse effects of neo-liberalism generate correspondingly diverse oppositions. The challenge is to see how the diverse groups can most effectively together.

...alliances, coalitions and networks are means by which to seek unity amidst diversity...

Alliances, coalitions and networks are means by which to seek unity amidst diversity. No doubt some activists will continue to work for progressive policies through the ALP and/or their unions, but others will choose to do so through other social and environmental movements. This is inevitable, so it would be churlish for me or any other analyst to lecture people on whether they are making the ‘right’ choice of where to channel their political energies. The key issue is to develop channels through which progressives can work in tandem through different organizations. Personally, I have chosen to work within the Greens, because that seems to be the most potent avenue for progressive views in the current circumstances. The Greens are the most rapidly growing political movement in the current era, particularly appealing to younger activists. But others may well choose to pursue progressive political aims through other institutional channels. And all of us can work together for progressive political purposes.

Conclusion

The current era does not signal the ultimate triumph of capitalism, still less the ‘end of ideology’. The dominance of neo-liberal principles and practices has generated greater economic inequality, a less cohesive society and greater problems of ecological sustainability. It has paved the way for the globalisation of corporate capital and for stronger assaults on labour rights, human rights and environmental quality. But those very interests and forces create their own oppositional tendencies. Developing and expanding the influence of ‘red-green politics’ is a way forward.

References:

A. Gorz, Reclaiming Work: Beyond Polity Press, London, 1999.

J. O’Connor, Environmental Crisis: an Eco-Marxist Perspective, in G. Argyrous & F. Stilwell (Eds), Economics as a Social Science: Readings in Political Economy, 2nd Edition, Pluto Press, Sydney, 2003.

F. Stilwell, Changing Track: a New Political Economic Direction for Australia, Pluto Press, Sydney, 2000.