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About Me
- Cllr Shelagh Finlay
- I am a Bridlington Town Councillor elected to represent Bridlington South Ward. The views and posts on this site are my personal views and are not those of Bridlington Town Council. If you become a member of this Blog I will expect you to adhere to posting comments that are not offensive or illegal.
Wednesday, 10 April 2013
The Glass Ceiling - the myth of Lady Thatcher
Interesting debate about how the glass ceiling was supposedly broken. It was indicated to me that the Conservatives choose on ability and Labour on quotas. Well in that case this would indicate that not many Conservative/LibDem women have ability. Or was the ceiling not really broken?
Tuesday, 9 April 2013
The New Right - 1979 or 2013?
1979 or 2013? I wrote this in 1995
In
what ways has the New Right criticised the nature of democratic decision
making? How do these criticisms compare
with the marxist critique of democratic decision making?
When the Thatcher Government came
into power in 1979 there was a distinct
shift from a corporatist style of government which had been in place for most
of the 60s and 70s. This was seen as a
move in the 'right' direction by the members of the New Right who were concerned
about how and by whom decisions were being made. The New Right were critical of
the way that interested groups were being given a privileged position in the
decision making which they felt should be left to the democratically elected
representatives. They further felt that there were processes in the democratic
decision making that were instrumental in contributing to the stagnation of the
economy by their over interference.
This, coupled with what they saw as an encroachment of their individual
freedoms and the over bureaucratic unelected state machine, made them look hard at areas which could be
brought into line with their liberal ideas.
Those who followed the marxist tradition of thought on the other hand
saw the nature of democratic decision making predominantly in the light of
capitalism and how it effected the
proletariat. They further looked at how
decision making seemed to be working in
the interests of capitalists. The
undermining of local government, deregulation, and QUANGOs were also areas
which are criticised both by the New Right and Marxists but for very different
reasons.
The way that Central Government was
being influenced by a minority of powerful interest groups was the first area
of criticism by the New Right. They felt
that the economy was being stifled by the corporatist style of government which
enable groups like the TUC and CBI to influence government policy making. The liberal thinkers of the New Right felt
that the markets should decide how the economy performed and not government
intervention. The tendency of allowing
minority groups to influence the way that regulations were formulated which
would effect the economy were also criticised by the New Right who put in place
union controls to counterbalance the favoured status enjoyed in the 60s and
70s. By curbing trade union power, introducing ballot voting and the decline in
a strong manufacturing base , the New Right were able, to a certain
extent, to follow their liberal instincts
and allow the economy a free rein.
The marxist view on the nature of
democratic decision making does, like most of the marxist views, have its roots
firmly planted in the economy and how the existing capitalistic economy remains
in place. The interaction between the
government and interested groups, especially the TUC seem to indicate that the
working class would have a voice in the decision making. This was not found to be so as the economy
went into recession and world events came in to play the welfare plans seem to be scaled
down. The fundamental aspects of a
capitalistic society remained as did the inequalities and it was noted by
marxist thinkers that the concessions that were made in the corporatist style
of government did nothing to redress the balance. This was illustrated by
Arblaster in 1987 who gave details of an incident whereby the Labour government
in 1975 allowed a foreign oil company to build a refinery on Canvey Islands in
Essex despite the local opposition. This
incident showed to the marxist thinkers that the capitalistic concerns seem to have great bearing on decisions made
by democratically elected governments.
So as the end of the 70s approached both the New Right and the Marxists
looked towards a different style of government
The next area of decision making
which was attacked by the New Right was what they saw as an over bureaucratic
unelected state machine, run by the civil service. The New Right felt that this unelected body
was incapable of acting in the public
interest but were more concerned with the building of power bases which needed
ever increasing number of staff to maintain. By building up their own 'empires'
and complicating the workings of government the New Right felt that the
necessary changes needed to rectify the economy and society as a whole would
best be done by the democratically voted in representatives and not entrenched
civil servants. The criticism of the civil service went further as the New
Right felt that they employed compromise and consensus when decisions were
being made instead of positive action.
The emphasis on a minority representation was not something that the New
Right wanted but what they saw as an elected majority making decisions. With
the need to free the economy and allow the individual to attain his own
potential whilst curbing the excesses of the state seemed to the New Right
paramount.
Those with a marxist view did not
see the New Right's criticism of
unelected bodies involved in running the state in quite the same way. Whilst the New Right went ahead with
dismantling many of the QUANGOs which they saw as unelected bodies regulating
and inhibiting liberal freedom, the Marxists criticised the placement of New Right thinkers in senior positions in the
QUANGOs which remained. This further
illustrated to them that capitalist interests would be at the forefront and
plurality of interests would be ignored.
The New Right next turned its attention to democratic
decision making by the elected representatives.
The New Right, in liberal tradition, felt that by voting for a certain
individual to represent them (on a reduced scale) this would leave the individual to determine his own
destiny with the resources he has (voting with their pockets).
" The free enterprise economy
is the true counterpart of democracy:..."
(Powell, 1969, p.33)
The
New Right felt that the elected Government should restrict itself to
maintaining individual rights, (especially to own capital), law, order and defence, and maintain a limited
welfare state designed to help not permanently maintain the less able. The New
Right were disappointed during the 80s with the increase of state spending on
welfare provision and remained critical of
what they saw as the 'Nanny State'.
Although unable to curb what they
saw as representatives placating the voters by increasing welfare provision,
the New Right were able to change some functions of democratic decision making
. By combining the liberal traditional view of 'rolling back the state' with
the conservative tradition of strong central government the New Right aimed its
next criticism at the nature of local government decision making. With the scaling down of local housing
provision, and the right to buy policy one area of local control was taken out
of local hands and placed in central government hands. The move to reduce the local government
involvement in education by the introduction of grant maintained schools and a
National Curriculum allowed the New Right to curb what they saw as excessive
democracy by the masses. By removing
areas of democratically elected local representatives the New Right had
followed their principle that 'democracy is to adults what chocolate is to
children: endlessly tempting; harmless in small doses; sickening in excess'
(Marquand 1988, p78)
This
move from local control of the education system and the introduction of
a National Curriculum led to some writers in the marxist tradition to look at
how the central government would be making decisions on what would be best for
the future capitalistic workforce. The
idea that the government, who would look to the interests of the
capitalists, would be able to determine
what working class children would learn which in turn would then enable them to
produce workers that would benefit the capitalist economy. They saw this as
another way in which the interests of capitalists were being catered for to the
detriment or even exploitation of the masses.
The nature of democratic decision making in Britain
has come in for criticism from both the New Right and from the perspective of
the marxist tradition. The New Right see
the state as something which needs to be dismantle in part and reassembled in a
way which would lead to less interference in individual rights whilst
maintaining law order and defence. They
further wanted to see the economy operating from a more liberal than conservative tradition,
unhindered by regulation. It was also important to them to reduce the welfare
state provision to more of a safety net than a way of life. Those who think in the marxist tradition
criticised the democratic decision
making but cited different areas which they felt had tipped the balance further
toward capitalism. The deregulation of industry which left the worker
vulnerable and the centralisation of government which reduced the power of
local government. The New Right and
Marxist both looked at the unelected bodies and saw different things, the New
Right wanted a scaling down, the marxist
saw the placement in senior positions of New Right thinkers, which they see as
a further move to the right with the gap between the haves and the have
nots. Many of the criticisms that have
been put forward by the New Right have been acted upon but some areas like
welfare provision appear to be a target to be aimed at.
What has changed?
I wrote this essay in 1995 as part of a Foundation Degree in Social Science. While thinking about the death of Lady Thatcher I decided to read it again all these years later. It is still as relevant today as it was then.
A dose of market reform
Joseph Schumpeter looked at the
capitalistic market as an ever moving,
ever changing entity fuelled by innovation and technological advances. As a new means of production was created the
old was destroyed. This Creative Destruction was seen in a biological way in
that the market was constantly evolving into something more efficient, cost
effective with better quality products.
The entrepreneur is always looking for a new development ahead of his
rival which will improve efficiency and ultimately reduce costs. Efficiency would also be gained from
economies of scale which would involve enlarging the area of operations to
produce more output whilst keeping overheads (buildings, equipment) fixed.
All the areas of public services
which have show a marked improvement in efficiency or a potential for
efficiency seem to indicate that market-orientated reforms have had a measure
of success. But, Julian le Grand also
argued in his article that for each success in efficiency there has been a
price to pay.
he
health authorities who tendering out the cleaning contracts may still
maintain that cleanliness within their hospitals meets their standards but the
workforce found that the re-negotiation of their contracts with Taylorplan
meant that their rates of pay remained the same but their terms of contract and
hours differed greatly under their new employer.
Julian le Grand also showed in his
article his concern over the possible 'cream-skimming' that might occur in both
grant maintained schools and GP fund-holding practices. Grant maintained schools seem to be heading for
success in terms of efficiency but by setting up another tier to the education
system, fee paying (private), grant
maintained and public domain schools
there could be a tendency to select pupils who are academically bright to
influence league tables in order to
remain competitive. Children who are
perceived to have behaviour problems may
be 'de-selected' as they would be seen as taking up teacher time.
GP fund holders have been cited in the article as another area of possible 'cream-skimming'. Doctors could refuse to take patients with a poor medical history, the elderly or potential health risk patients (smokers, the obese). They could also been seen to be adding another tier to the private/public heath care we have now, aiming to compete with the private sector whilst leaving behind the public sector to inferior medical care. Although Julian le Grand points out in his article that this form of selection is not at present happening, as the market reforms become more widespread the need to become productively efficient and eliminate drains on the fund-holders resources, could mean that the temptation becomes irresistible.
Externalities, or social costs, are another area which left Julian le Grand unable, in his article to determine if provision of welfare services are better kept out of a quasi-market situation. With the presence of externalities within the welfare service, it (the welfare service), could never be efficient because the social cost would outweigh the benefits. One area were the externalities seem to be evident was is in the contracted out cleaning. Not only have the workers suffered by possible loses by being made to work shorter hours they could find themselves unable to claim sickness benefit, maternity benefit and unemployment benefit and in the long run pensions. The patients also appear to be the losers as the staff are tied to strict work practices and tender loving care doesn't seem to have been budgeted for when tenders were made. Another area of social cost not counted in the efficiency equation is the amount of unpaid work done in the private domain as state provision of community care is reduced or put on the market. This is especially prominent in the area of looking after the elderly and sick who are no longer nursed in state homes but are placed back into the community.
The article by Julian le Grand stated that the changes to public services have not as yet failed but it does seems that any efficiency gains have been made at a cost. In the case of the health authorities the workers have suffered through new work practices introduced by the global corporation Taylorplan along with the patients who no longer received unbudgeted services. Any gains to be made in community care have been negated by the use of volunteer groups unmotivated by profit. The article does go on to concede that efficiency and savings have been made in two areas, education and GP fund-holders but reservation was show at possible 'cream-skimming' which could slowly creep in as market competition bites. Areas of creative destruction and areas of equilibrium within the public services may causing efficiency but the externalities and inequalities could tip the balance. The article 'A dose of market reforms' seems to indicate that reform in the public services may indeed turn out to be a bitter pill.
A dose of market reform
Can market-orientated reforms bring
about better efficiency within the public services and what are the drawbacks
which would negate any gains made? By
looking at the article in the light of two different models of competition,
Schumpeter's dynamic model of competition and the neoclassical model of perfect
competition the gains and losses can be seen as certain parts of the public
services move from public to private.
The neoclassical model of perfect
competition looks for efficiency in a very different way to Schumpeter's
model. Unlike Schumpeter's model of
dynamic competition this market works on
the principle of perfect balance or equilibrium which is achieved when supply
is equal to demand and the markets are left to determine the price as supply
and demand fluctuates. The market is
said to be productively efficient when the unit costs are at a minimum given
the technology available.
Given the two models of competitive
markets outline above, how have certain parts of the public services exposed to
market-orientated reforms achieved gains in efficiency? The health
authorities, who Julian le Grand first mentions, have made some efficiency
gains within their cleaning services which have been put out to commercial
tender. Bradford Area Health Authority
tended out it cleaning contract in the 80s and after first failing in a bid,
the contract was eventually awarded to a Taylor plan, an Australian Company,
who held contracts cleaning hospitals
around the world. By working on a global
scale, efficiency gains have been made on a local scale, through almost Fordism
practices of work, with the knowledge of scientific management and economies of scale in bulk purchase of
machinery and raw materials. By keeping the costs to the minimum given the
technology available the company can be productively efficient as well.
Efficiencies could be made in community
care, but as suggested by le Grand, the voluntary organisations used in
preference to less informed providers are not using their advantageous position
and lack motivation to make a profit.
Julian le Grand moves on in his
article to two areas of the public services which seem to have improved
efficiency. The grant maintained schools
have, through competition, begun to amass a surplus in finances with the
balance being maintained between provider and supplier. Whilst the GP fund holder has been able to
make use of his substantial knowledge to capitalise on the market and use his
funds more efficiently.
GP fund holders have been cited in the article as another area of possible 'cream-skimming'. Doctors could refuse to take patients with a poor medical history, the elderly or potential health risk patients (smokers, the obese). They could also been seen to be adding another tier to the private/public heath care we have now, aiming to compete with the private sector whilst leaving behind the public sector to inferior medical care. Although Julian le Grand points out in his article that this form of selection is not at present happening, as the market reforms become more widespread the need to become productively efficient and eliminate drains on the fund-holders resources, could mean that the temptation becomes irresistible.
Externalities, or social costs, are another area which left Julian le Grand unable, in his article to determine if provision of welfare services are better kept out of a quasi-market situation. With the presence of externalities within the welfare service, it (the welfare service), could never be efficient because the social cost would outweigh the benefits. One area were the externalities seem to be evident was is in the contracted out cleaning. Not only have the workers suffered by possible loses by being made to work shorter hours they could find themselves unable to claim sickness benefit, maternity benefit and unemployment benefit and in the long run pensions. The patients also appear to be the losers as the staff are tied to strict work practices and tender loving care doesn't seem to have been budgeted for when tenders were made. Another area of social cost not counted in the efficiency equation is the amount of unpaid work done in the private domain as state provision of community care is reduced or put on the market. This is especially prominent in the area of looking after the elderly and sick who are no longer nursed in state homes but are placed back into the community.
Other areas of the market-orientated
reforms in the public services could also be cause for concern as the markets
are left to decided who should benefit from it. Professor Amartya Sen argued
that markets generally reflect the unequal balance of power in society and it
could be said that by putting public services in the competitive market place
it becomes open to inequalities. The
three tier system of education and selection can indeed inhibit life chances of
children who are not able to benefit from the financial surpluses that are
mentioned in the article. The patient
who attends clinic at a non-fundholding practice may be denied certain
treatments or be put to the bottom of the list at a hospital as fund-holders
are able to buy into the system quicker or indeed use private clinics for their
patients. The inequalities of the benefits of market reform may also be more
evident regionally as some areas would be privileged to better services.
The article by Julian le Grand stated that the changes to public services have not as yet failed but it does seems that any efficiency gains have been made at a cost. In the case of the health authorities the workers have suffered through new work practices introduced by the global corporation Taylorplan along with the patients who no longer received unbudgeted services. Any gains to be made in community care have been negated by the use of volunteer groups unmotivated by profit. The article does go on to concede that efficiency and savings have been made in two areas, education and GP fund-holders but reservation was show at possible 'cream-skimming' which could slowly creep in as market competition bites. Areas of creative destruction and areas of equilibrium within the public services may causing efficiency but the externalities and inequalities could tip the balance. The article 'A dose of market reforms' seems to indicate that reform in the public services may indeed turn out to be a bitter pill.
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