Broader Progressive Alliance To End System Crisis

Ritu Raj Subedi 

It is no wonder that neoliberalism has been in perpetual crisis for it is an extreme form of capitalism that is driven by motive for endless profit and insatiable greed, and least concerned for the society, disadvantageous groups and ecology. The inherent contradictions within capitalistic system were identified by Marx more than two centuries back. But Marx’s socialist project, based on his classical theory of communism and experimented in many countries, could not sustain and thrive as expected. Ironically, on the other hand, capitalism has been successful to ride over the storms through smart, innovative moves and manoeuvrings.  When there is a compromise between capital and labour, a semblance of political and economic stability can be realised but when economy is privatised, corporates de-regularised and welfare state rolled back, crass capitalism plunges into a morass of crisis, inflicting economic, social and psychological pain on the majority of populace. 

The 2008 financial crisis was overcome by doling out massive bailouts to the failing private banks. But it was fraudulence against the larger segment of citizens because the fiscal stimulus socialised the cost and privatised the profit. With the COVID-19 pandemic outbreak, the neoliberal system was again shaken to the core, exposing its inability to tackle the large-scale catastrophe that befalls the society. Today the world is buffeted by multiple crises - economic crisis, democracy crisis, climate crisis, euro crisis, refugee crisis and so on owing to faulty economic structure. “Neoliberalism was never designed to solve the system crisis. On the contrary, the neoliberal programme created and exacerbated the crises we face today,” says Marc Saxer, noted German political analyst and writer in his book ‘Transformative Realism: How to Overcome System Crisis.’ He propositions a broader alliance of progressive forces to overcome system crisis and build human economy and caring state.

Social democrats, the Left, greens, educated middle classes, progressive-neoliberal and cultural identirians form the key actors of such alliance capable of checking the populist wave of the conservative Right-wing and revive the robust welfare state that cares and respects the neglected citizens irrespective of their class, creed, colour and ethnic backgrounds. Distributional justice and recognition of cultural identity of minorities carry the basic values of Saxer’s change theory.  

Divided into four parts and 28 chapters, the book comprehensively diagnoses the structural crises facing the post-industrial Western society in general and Germany in particular and come up with the notion of ‘Transformative Realism’ to address them.  Saxer bases his theory of Transformative Realism on the ideas of economist J.M. Keynes, neo-Gramscianism, post-Marxist left and school of democratic socialism. He draws on Gramscian tradition of thought to grasp social power relations between the classes. He says: ‘Permanent social struggle for hegemony does not have an end goal. Even the new order will eventually break down due to internal contradiction and replaced’. There is no bipolar struggle just between two classes but multiple social classes and forces fight for resources, identity and visibility in the society. ‘It is not objective class position but a series of discourses that have been condensed into a grand narrative about how society should be organised.’ 

 The Left insist that to ‘overcome the organic crisis of capitalism, all economic, political, ideological systems must be configured simultaneously’. However, with demise of proletariat, it lacks a subject to carry the flag of class struggle’. On the other hand, progressive neoliberals suggest a few adjustments to solve the crises.  There are other societal challenges – post-industrial society is fragmented and pluralistic.  Saxer argues that ‘no single social group, however, powerful, can implement the necessary paradigm change against the alliance of social forces behind the status quo.’  As progressive camp is weak and divided, a broad societal coalition is essential to mobilise the power resources needed to break through the status quo. So he proposes the concept of ‘Transformative Realism’ that is an approach to build broad platforms where people with different interests, identities, worldviews and values can gather together and fight for a better future. 

The book includes a comprehensive study of the socio-economic classes of Germany conducted by Friedrich Ebert Foundation. It presents nine classes focusing on ‘hybrid political types combining socio-economic class situation, moral values and ideological conceptions of order’. Although it reflects reality of German society, it is also applicable in other industrial societies such as Japan and South Korea, according to author.  They include the socially-engaged professionals (18 per cent), the highly educated progressives (9 per cent), the privileged conservatives (10 per cent), the satisfied social market economy generation (16 per cent), the insecure meritocrats (9 per cent), the socially-disengaged lone warriors (13 per cent), the disillusioned employees (10 per cent), the uncredited service providers (10 per cent) and the left-behind precariat (5 per cent). It is up to the alliance leaders to identify allies as to which ones fit into the transformative alliance and which not.

The author apparently follows the philosophy of Buddha instead of Marx when it comes to adopting the methods and strategy to translate transformative realism into action. He is for convincing majority of society by combining all emancipatory struggles into a broad alliance. For this, the alliance leaders should create strategic narratives that have mass appeal and compatible with moral concepts and ideas of different life-worlds. The book has envisaged green new deal, nurturing and caring gardener state and human economy and a sovereign and united Europe acting as a guardian and thriving homelands. The author has claimed that the broad coalition of progressive and democratic forces has enabled Social Democratic Party of Germany (SDP) to return to power in 2021, and worked in other countries, too.

To craft a new social contract between different life-worlds and a collective identity of varied social-cultural groups poses a monumental challenge. Building new bridges between the working class and solidarity-minded middle classes for social cohesion appears to be a bit utopian in a society that is afraid of globalisation-induced inflow of migrant workers. Similarly, a melange of social blocks with different interests is prone to internal conflict that can sap the alliance’s energy and unity. Nonetheless, the author has unveiled new ideas for drastic socio-political reforms.  The book employs crisp and precise language. The author has poured his pragmatic knowledge, professional experiences and intellectual verve into the book, making it appeal to a wider section of readers.

(The writer is Deputy Executive Editor of this daily.)