Showing posts with label Economic freedom. Show all posts
Showing posts with label Economic freedom. Show all posts

Tuesday, April 1, 2025

Can the concept of political entrepreneurship help us to understand authoritarianism?

 


In this essay I discuss the relevance of the concept of political entrepreneurship to an understanding of political outcomes that have substantially affected personal and economic freedom in different countries. The essay has a particular focus on authoritarianism. My understanding of that concept is based on  the view of Hans Eysenck that people who have an authoritarian personality are attracted to the possibility of oppressing others. People who have authoritarian values see such oppression as justified. Authoritarian governments oppress people by restricting their personal and economic freedom to a greater extent than other governments.

The essay focuses on political outcomes which seem incongruent with underlying cultural values in a range of countries. It suggests that political entrepreneurship has influenced the ideologies currently reflected in personal and economic freedom in those countries. It also considers the current role of political entrepreneurship in harnessing cultural and economic grievances to pursue a range of different ends in the liberal democracies.

The essay draws on some of my previous research on the extent to which cultural values can explain authoritarianism and on the influence of cultural backlash and economic grievances on political outcomes in liberal democracies. That research is summarized prior to considering the nature and relevance of political entrepreneurship.

Can cultural values explain authoritarianism?

My answer to that question is that cultural values do not fully explain authoritarianism – the ideologies of some governments are at variance with cultural values. The best way to explain how I came to that conclusion is by referring readers to the accompanying graph which shows levels of economic freedom and personal freedom for 85 countries. Please note that the personal freedom scale on the vertical axis is in reverse order with highest levels of personal freedom at the bottom. (The graph has previously been published in an article in The Savvy Street in 2023.)

Please focus on the labelling of data points. I have attached country labels only to those data points where freedom ratings are substantially different from predicted levels based on indexes of emancipative and facilitating values which were constructed using World Values Survey data. The methodology for constructing these indexes is explained in the Savvy Street article and on this blog (here and here).

The colour of the labelled points depends on whether freedom is greater than or less than predicted—green if greater than predicted, red if less than predicted. The size of the labelled points is larger if both personal and economic freedom are greater than or less than predicted.

It is clear from the graph that freedom ratings of most of the countries with low personal and economic freedom are substantially lower than predicted by corresponding emancipative and facilitating values. The countries in which both personal and economic freedom is less than predicted include China, Iran and Venezuela. It seems obvious that suppression of liberty in those countries is a product of the ideologies of the governments concerned rather than the cultural values of the peoples.  

The graph also shows that a substantial number of countries with relatively high personal and economic freedom are performing better in that regard than can readily be explained on the basis of prevailing values. Most of the countries concerned are not the high-income countries of North America, Western Europe, Oceania, and East Asia that come to mind when one thinks of countries with relatively high levels of economic and personal freedom.

The existence of countries in which freedom levels are substantially greater than predicted by facilitating and emancipative values suggests that government support for economic and personal freedom may precede or accompany the evolution of facilitating and emancipative values. The transition to high levels of economic freedom often takes place over an extended period. As market-friendly economic reforms promote the growth of economic opportunities, this could be expected to lead to the gradual evolution of facilitating values supporting higher levels of economic freedom. The growth of economic opportunities could be expected to encourage people to place higher value on personal autonomy and to become more trusting of others.

Milton Friedman observed that economic freedom “promotes political freedom because it separates economic power from political power and in this way enables the one to offset the other” (Friedman, Capitalism and Freedom, 1982, 9). As economic development proceeds, the evolution of emancipative values provides additional support for personal freedom.

The correlation between economic and personal freedom is strikingly evident in the graph. There are not many countries with relatively high personal freedom and low economic freedom, or vice versa. Argentina—which stands out as the only country having high personal freedom despite low economic freedom—helps illustrate why that is so. In the published article, I suggested:

“In Argentina, the decline in economic freedom over the last 20 years has been accompanied by worsening economic prospects, which seem likely to lead, before long, to an economic and political crisis. Hopefully, the political response to the crisis will be to restore greater economic freedom and make personal freedom more secure, rather than to restrict personal freedom to suppress criticism of government policies.”

A few months after that comment was published, Javier Milei was elected president of Argentina and has successfully introduced policy reforms to expand economic freedom. (Unfortunately, I cannot claim that my essay was influential in bringing that about.)

Cultural and economic grievances as explanators of political change

In the preceding essay on this blog I discuss the question: “Is cultural backlash a major determinant of political outcomes in the liberal democracies?” My intial focus was on the view which Pippa Norris and Ronald Inglehart presented in their book, Cultural Backlash: Trump, Brexit and Authoritarian Populism (2019),  that the spread of post-materialist values has induced a cultural backlash among cultural conservatives. They suggested on that basis that the combination of authoritarianism and populist rhetoric is a threat to liberal democracy.

In my view, Norris and Inglehart were mistaken in attributing cultural backlash to the spread of post-materialist values. I argued that it would be more correct to attribute cultural backlash to the illiberalism of progressives who have been advocating what Yascha Mounk has described as the identity synthesis (see: The Identity Trap, 2023). The identity synthesis has provoked a backlash because it rejects neutral rules like equal opportunity and free speech in favour of action to promote the interests of particular groups that have suffered from discrimination in the past.

Some recent research by John Burn-Murdoch, published in the Financial TimesWhy the Maga mindset is different’, March 7, 2025) has suggested that over the last 20 years the values held by people who identify with the right wing of U.S. politics has moved closer to the values of people in Turkey, Russia and China than to people who identify with the right wing of politics in Europe. It remains to be seen what impact, if any, this apparent retreat from classical liberal values will have on the institutions of liberal democracy in the United States. 

Norris and Inglehart acknowledge that economic grievances also play an important role in encouraging people to support policy remedies proposed by populists. In that context, I have referred to some research published in an essay on this blog that has highlighted the adverse impact that slower economic growth can have on life satisfaction, particularly of young people. I suspect that the longer-term slowdown in economic growth in the liberal democracies might be more important in generating support for populist policies than are grievances that can be related directly to the impact of import competition or immigration.

However, we live in a world where the policies that political leaders sell to voters depend on how voters perceive reality. Those perceptions are not always accurate. Some opinion leaders on both the progressive and conservative sides of politics attempt to sell voters a distorted view of reality. As I wrote that I was reminded of a comment I made in my review of Michèle Lamont’s book, Seeing Others, 2023. I suggested:

On the question of factual accuracy, Lamont’s narrative, which suggests that the workers have reason to be angry with the wealthy one percent, seems to me to be just as questionable as Donald Trump’s narrative which suggests that the workers have reason to be angry about globalization and immigration. Neither of those narratives promotes an accurate understanding of economic reality.”

The concept of political entrepreneurship

Catherine De Vries and Sara Hobolt have suggested that competition between political parties in European countries is like competition in economic markets. In both contexts long-standing dominant players (firms or parties) may be challenged by disruptive new players. The central objective for both challengers and incumbents is the control of government and the delivery of public policies. Political entrepreneurs play a key role because a party that engages in successful political policy innovation can enjoy an effective monopoly on an issue and reap the consequent electoral benefits. (De Vries CE, Hobolt SB. Challenger Parties and Populism. LSE Public Policy Review. 2020; 1(1): 3, pp. 1–8. DOI: https://doi.org/10.31389/lseppr.3)

De Vries and Hobolt were writing about multi-party systems in which several political parties are competing for power. However, a similar form of competition occurs when an innovative political entrepreneur within a major political party challenges established leadership factions by offering a product that is more appealing to supporters of the party.

Valentina Ausserladscheider has contributed to an understanding of political entrepreneurism by providing a framework to consider reasons for the political success of Jörg Haider, the leader of the Austrian Freedom Party, during the 1990s. Haider’s winning formula was based on a policy mix of authoritarian and and neoliberal policies, which was particularly successful during a time of economic turmoil and uncertainty. (See Chapter 9 of Culture, sociality, and morality : new applications of mainline political economy edited by Paul Dragos Aligica, Ginny Seung Choi, and Virgil Henry Storr, 2021).

Ausserladscheider emphasizes that the strategies of political entrepreneurs are not determined solely by voters’ ideological positions. Successful political entrepreneurs don’t offer the same policies as their competitors. They advance their political ambitions by focusing on niches in the marketplace of ideas that established parties do not satisfy, and on winning support by emphasizing the problem-solving capacities of their ideas. For example, the entrepreneurial strategy of far-right parties is their “nationalist and nativist core ideology”, leading to policies such as immigration restrictions that are claimed to solve a range of problems.

As illustrated by the example of Jörg Haider, the strategies that political entrepreneurs follow to attract support can result in political programs that offer a mix of libertarian and authoritarian policies.

The influence of political entrepreneurs

From a cursory inspection of the accompanying graph, people who have rudimentary knowledge of global politics would have no difficulty identifying political entrepreneurs who have historically been major players determining outcomes in many jurisdictions where economic and personal freedom seems substantially at variance with underlying cultural values. There are good reasons for that. Media coverage tends to focus on political leaders, the challenges they face and the policies they adopt.

The role of political entrepreneurship is not always obvious in liberal democracies where the institutions of representative government have been respected for many decades. However, it doesn’t make sense to assume that changes in public opinion will be automatically reflected in public policy even in countries with representative government. In general, the responses of political markets to new information (e.g. poll data about shifts in public opinion on particular issues) depend to a much larger extent on decisions by big players than do responses to new information in financial and commodity markets.

A better understanding of the reasons why political entrepreneurs behave as they do might help us to assess whether current political developments are likely to expand or constrain economic and personal freedom. Those outcomes depend on both the motivations of the individuals concerned and on the social and economic context in which they operate.

Like other humans, political entrepreneurs are motivated by a range of factors. It is usually unrealistic to assume that they are motivated solely by a desire to maximize social welfare (whatever that means), to maximize the number of votes they obtain, to maximize personal wealth, or to obtain the perks of the office. Given the nature of their occupation, however, it seems reasonable to assume that political entrepreneurs obtain more satisfaction than most other people from constructing ideological narratives and selling them, and from exercising the political power required to implement policies.

In some instances, ideological predilections may play a dominant role. For example, while social and economic context helps to explain why revolutions occurred in China and Iran in the 20th century, the repression of individual liberty following those revolutions stemmed directly from the ideologies of revolutionary leaders - Mao Zedong in China and Ayatollah Khomeini in Iran.

Similarly, while the economic problems confronting the United States and Britain during the 1980s provided contexts in which substantial changes in the direction of economic and social policies could be contemplated, the responses of Ronald Reagan and Margaret Thatcher owe much to their respective commitments to economic freedom. The reforms currently being pursued by Javier Milei in Argentina seem to be similarly motivated.

Looking around the world, a range of different ideological predilections seem to be playing a role in policies advocated by political entrepreneurs. For example, we see ideological considerations playing a role among those seeking opportunities to expand the welfare state, to redistribute wealth, to promote “equity” for community groups which have suffered from discrimination in the past, to save the environment from CO2 emissions, to pursue international humanitarian goals, or to pursue nationalist goals by restricting immigration, raising trade barriers, and withdrawing from international organisations. Some of those policies have potential to impinge adversely on economic and personal freedom.

As we have seen earlier, even if political entrepreneurs are motivated mainly by a desire to exercise political power, the innovative aspect of their role requires them to focus on niches in the marketplace of ideas that established parties (or factions) do not satisfy. They seek to attract support from people who are discontented with current economic and social outcomes by emphasizing the problem-solving capacities of their ideas. Their success in attracting a loyal support base of customers who are willing to help them to sell their narrative depends to a large extent on the strength of competition from politicians selling different narratives, and on the extent of resistance by journalists and members of the public who consider their narratives to be incorrect or that their policy proposals are unworkable, unconstitutional, unethical, or otherwise unhelpful.

In my opinion, the ability of some political entrepreneurs (from both conservative and progressive sides of politics) to persuade large numbers of people to accept false narratives is posing an increasing threat to liberty in the liberal democracies. False narratives pose a threat to liberty because they often provide a basis for false beliefs that problems can be solved by restricting personal and economic freedom. For example, the personal freedom of people who refused vaccinations for Covid was restricted inappropriately in many countries because of false narratives that unvaccinated people were likely to spread infection. And economic freedom is currently being restricted in some countries through imposition of higher import barriers on the basis of false narratives about the impact of free trade.

A few decades ago, people seemed to have been more willing to put their trust in political commentators who took pride in remaining politically independent and well-informed. Those commentators were able to expose false narratives to a greater extent than now occurs, and thus to limit the influence of political entrepreneurs who base their policies on falsehoods.

In recent years, however, mainstream media has become increasingly polarized. The rise of social media seems to have aggravated the problem. Many exchanges of views about political issues on social media consist largely of recitations of false narratives promulgated by political leaders.

Some commentators who are independent and well-informed can still be found in both mainstream and social media, but prevailing cultures may need to give greater respect to the search for truth before those people will have sufficient influence to discourage political entrepreneurs from promoting false narratives.

Conclusions

Authoritarian and libertarian political outcomes don’t just appear out of nowhere. Underlying cultural values that have evolved over long periods of time go some of the way toward explaining levels of economic and personal freedom in different countries. However, political entrepreneurship also plays an important role.

The role of political entrepreneurs is most apparent in those countries where underlying cultural values are less supportive of economic and personal freedom. Political entrepreneurs have played an important role in some of those countries in promoting either more or less freedom than would be expected on the basis of underlying cultural values.

The role of political entrepreneurship has been more constrained in those liberal democracies where the institutions of representative government have been respected for many decades.

However, the ability of some political entrepreneurs (from both conservative and progressive sides of politics) to persuade large numbers of people to accept false narratives is posing an increasing threat to personal and economic freedom in the liberal democracies. Polarization of the media means that such claims are now less subject to independent scrutiny than they were a few decades ago.

Recent political developments are raising the question of whether cultural change in some liberal democracies has emboldened some political entrepreneurs to challenge conventions regarding government respect for judicial rulings on the legality of their activities. Governments that do not perceive themselves to be bound by judicial interpretation of laws and constitutions are unlikely to have much regard for individual liberty. Any government which claims that its actions are beyond legal challenge because they reflect the general will of the people is showing obvious signs of authoritarianism.


Addendum

Chris M Sciabarra has given me permission to publish the following comment, which he has provided by email:

"I just read the essay and enjoyed it; I'll have to give a bit more thought to it. You make some very good, persuasive points, though there are some claims that I need to process a bit more. I think the whole concept of political entrepreneurship has some weight here. I wonder how, for example, it might mesh not only with public choice thinking, but also with Hayek's insights about how the 'worst get on top' when political power becomes the only power worth having. If that's the case, then political entrepreneurship in a populist age morphs into a kind of political con game that attacks the very roots of liberal democracy---something you acknowledge in your conclusions.

One of the issues that concerns me is that while there was a backlash against the "identity synthesis" of illiberal progressives, I don't think that was the key factor that influenced the outcome of the election. Incumbent parties lost all around the world, whether they were perceived as 'right'- or 'left'-leaning. In the US, of course, Trump won over Harris. In the UK, the Conservative Party was defeated. The Liberal Democrats lost in Japan, while in France, a coalition of left-wing and centrist parties gained ground. And so forth. I think that inflation, stagnant wages, housing affordability, etc. led most incumbents to defeat because whoever is in power is the party that takes the blame for the conditions on the ground. 

That said, I also think that the "identity synthesis" on the illiberal left has only been replaced by a different kind of "identity synthesis" on the illiberal right, given the right's embrace of nationalism and, in many cases, a virulent form of nativism, riding on profound anti-immigrant fervor. Not to mention the illiberal right's obsession with scapegoating the smallest of minorities---like transgender-identifying people, who make up about 0.6% of the population. This is as much of an illiberal right-wing play on identity politics as anything we've seen on the left." 

Wednesday, April 3, 2024

Is Alexander Hamilton's ideal of a modern commercial republic still relevant today?

 


Alexander Hamilton was one of the Founding Fathers of the United States. He served as secretary to the Treasury from 1789 to 1795 during the presidency of George Washington.


I knew little about Alexander Hamilton’s contribution to American economic policy before reading Samuel Gregg’s book, The Next American Economy: Nation, State, and Markets in an Uncertain World, 2022. Gregg suggests that America faces a choice between a form of state capitalism – top-down interventionism focused on achieving political objectives such as greater economic security for specific groups and “national security” – and a free market economy. He argues that in making the case for free markets it is helpful to take another look at the ideal of a modern commercial republic as espoused by Alexander Hamilton.

Centralization of powers

Prior to reading Gregg’s book, I knew that Hamilton had argued successfully for greater centralization of government powers than prevailed in the original confederation. On that basis, I had entertained the idea that he might possibly have been responsible for much that is wrong with the U.S. today.

Gregg presents a more positive view of Hamilton’s contribution. He suggests that integration of the states into a more unified commercial republic made it easier for Hamilton to apply principles of free trade among the states and between the U.S. and other countries.

Gregg’s line of reasoning poses a challenge both to libertarian globalists, who see national governments as the source of barriers to the functioning of free markets, and to economic nationalists who want governments to prevent foreign economic competition because they see it as a threat to national sovereignty. He challenges libertarian globalists by suggesting that “failure by the government to smooth the economic ups and downs which are part of life in a market economy risks opening the door to political movements that have no particular regard for human freedom”. He challenges economic nationalists by suggesting that tariffs and other measures that protect of American industry from foreign competition are harmful to Americans.

 It isn’t necessary for libertarian globalists, like myself, to abandon utopian thinking in order to see merit in effective unilateral action by national governments to promote free trade. At a national level, the case for free trade rests on it providing individual citizens and their descendants with the prospect of better opportunities than would otherwise be available to them.

To eliminate the excesses of statism, it is necessary for political leaders to exercise statecraft (or what Adam Smith and David Hume referred to as “the science of the legislator”. As Gregg puts it Smith and Hume recognized that:

 “the knowledge furnished by … integration of moral, political, and economic inquiry needed to be brought to bear upon society by statesmen and governments in the interests of its improvement”.

Gregg notes that although Edmund Burke’s involvement in economic policy was “attuned to political realities” he leaned strongly towards promoting greater commercial freedom within Britain’s empire and between Britain and other nations.

America’s Founding Fathers, including Alexander Hamilton, were also influenced by Adam Smith and David Hume.

Hamilton’s vision of a commercial republic

Samuel Gregg explains how Hamilton advanced his vision of a commercial republic in his contributions to the Federalist Papers and in his role as secretary to the Treasury. Hamilton’s vision of a modern civilized nation combined republican government and a private enterprise economy, with merchants subject to the discipline of competitive markets. He hints that character traits that make for commercial success – industry, innovation, economy, self-restraint, honesty, prudence – are also republican virtues.

Hamilton argued for free trade between the states and for revenue tariffs only on international trade. He suggested that tariffs “force industry out of its more natural channels into others in which it flows with less advantage”. He maintained that trade policy should be driven by national interest and was adamantly opposed to use of trade sanctions as an instrument of foreign policy.

What next?

Samuel Gregg ends his book by acknowledging that he doesn’t know whether there is a real possibility that an American commercial republic could emerge to shape America’s future. He hopes that it could on the basis that he can “see no reason why America cannot embrace the habits, incentives, and disciplines associated with markets while also grounding them in the language, norms, and virtues of the American experiment”.

Since 2022, when Gregg’s book was published, it has become clearer that the U.S. is likely to continue, for a few more years at least, down the path towards greater international trade protectionism.  The choice that the two major political parties are offering voters in the 2024 presidential election certainly does not include a candidate offering an alternative to higher trade barriers.

Unfortunately, the adverse impacts of increased trade protectionism in the U.S. cannot be guaranteed to result in a strong impetus for policy reversal. The U.S. economy is sufficiently large and diverse that increased barriers to international trade are likely to have relatively minor adverse impacts by comparison with those that would occur in most other countries if they followed similar policies.

It looks to me as though trade liberalisation is unlikely to occur in the U.S. until influential politicians come to see merit, from a foreign policy perspective, in supporting multilateral efforts to encourage trade among countries that have more than minimal regard for free market principles.

Meanwhile, Samuel Gregg’s book will hopefully be widely read in other countries where some current political leaders may be more receptive to Alexander Hamilton’s vision of a commercial republic based on free market principles.

Conclusion

Samuel Gregg’s book, The Next American Economy, urges Americans to adopt the ideal of a modern commercial republic, as originally espoused by Alexander Hamilton. Hamilton argued for the U.S. to adopt, unilaterally, the principle of free international trade on the grounds that this would serve the economic interests of Americans and promote republican virtues.

Unfortunately, American political leaders do not currently seem to be in the mood to re-endorse Hamilton’s vision of a modern commercial republic.

Hopefully, Gregg’s book will be widely read in other countries where some political leaders may be receptive to messages about the contemporary relevance of the role that free market polices played at an early stage in the economic and social development of the United States.


Thursday, February 15, 2024

What makes a narrative good?

 


I asked myself the question posed above as I was reading Michèle Lamont’s book, Seeing Others, How to Redefine Worth in a Divided World. The passage quoted below seems central to Michèle Lamont’s book:

“The hegemony of the American dream manifests in the emphasis Americans put on neoliberal virtues of material success, self-reliance, individualism, entrepreneurialism, and competitiveness. These criteria of worth have gained more and more influence as “models of ideal selves,” and encourage many to internalize blame for the increasing precarity of their lives. This model can also lead people to seek out a scapegoat group to blame.” (p 31)

Those sentences seem to suggest that neoliberalism encourages people to either internalize blame for misfortune or to seek scapegoat groups to blame.

Internalizing blame

The author doesn’t explain why she believes neoliberalism can cause people to “internalize blame for the increasing precarity of their lives”, but she lists several references in the notes section which may support her claims. The one which seems likely to be most relevant is an article by Glen Adams, Sara Estrada-Villalta, Daniel Sullivan, and Hazel Rose Markus entitled ‘The Psychology of Neoliberalism and the Neoliberalism of Psychology’, Journal of Social Issues 75 (1), 2019.

Adams et al use the term ‘neoliberalism’ to refer to an economic and political movement that came to prominence in the late 1970s, advocating “deregulation of markets and free movement of capital with an emphasis on fluidity and globalization”. Such usage of ‘neoliberalism’ to refer to advocacy of free markets is now common, even though the term was once generally understood to refer to advocacy of left-leaning policies, e.g. a ‘social market economy’, rather than free markets. Like most advocates of free markets, I would prefer to be referred to as a classical liberal or libertarian, but I can usually assume that I am among good company when I am labelled as a neoliberal.

The authors argue that neoliberalism encourages “an entrepreneurial approach to self as an ongoing development project, an imperative for individual growth and personal fulfillment, and an emphasis on affect regulation”. I don’t object to that characterisation. It describes some aspects of the approach to human flourishing in Part III my book, Freedom, Progress, and Human Flourishing.

However, the authors suggest that neoliberalism also supports psychological “responsibilization” - an ugly word for an ugly concept. The claim they make is that neoliberals advocate that individuals should not only accept personal responsibility for problems which it may be possible to ameliorate through behaviour change (such as obesity and substance abuse) but also to accept responsibility for misfortune more generally.

Neoliberals argue that free markets tend to reward individual effort, but that doesn’t mean that they believe that economic misfortune is always attributable to lack of individual effort. In fact, one of the characteristics of neoliberalism is recognition that social problems of poverty, unemployment etc. are often attributable to foolish government economic policies that are opposed to economic freedom.

I don’t know any neoliberal who would suggest that individuals should “internalize blame” for any disruption of their lives associated with innovation and competition. Neoliberals are more likely to suggest that people who lose jobs or other remuneration because of the disruptive impact of innovation and competition should view such setbacks as beyond their control. The potential for such setbacks is a price that previous generations have willingly paid to enable to enable their descendants to enjoy the benefits of economic growth. Deirdre McCloskey – a prominent classical liberal – has coined the term, ‘bourgeois deal’, to refer to the willingness of people to accept the potential for their lives to be disrupted by innovation and competition in exchange for ongoing expansion of economic opportunities. (See Bourgeois Equality.)

I doubt that many psychologists would suggest that their clients should “internalize” blame for all the bad things that happen to them. When psychologists suggest that individuals should take responsibility for their lives, I am sure that the vast majority would mean that individuals should focus on taking personal responsibility for problems that are within their locus of control.

Who is responsible for the scapegoat narrative?

It took me some time to work out why Michèle Lamont believes that neoliberalism encourages people to seek out scapegoat groups to blame for misfortune. Her reasoning evidently has more to do with her belief that Donald Trump is a neoliberal than with the beliefs of neoliberals.

On the page following the passage quoted above, Lamont writes: 

“From Ronald Reagan to Donald Trump, neoliberalism has come to be understood as a precondition for a successful society”.

I believe that free markets help societies to become and remain successful, but it is hard to understand how anyone could perceive Donald Trump to be an advocate of that view. While in office, Trump administered the final blow to the “neoliberal consensus” on international trade that characterised the post-Cold War period, and he currently favors further restrictions on international trade and international movement of labor.  

Lamont’s claim that neoliberalism encourages people to seek out scapegoat groups to blame seems to rest on the behavior of Donald Trump. She observes that in 2015 former president Trump advanced a false narrative in which immigrants from Mexico were rapists and drug dealers. (pp 51-2). During the 2016 campaign Trump appealed to “America’s forgotten workers” by recognizing their plight and “by blaming globalization and immigration for it”. (p 70)

Lamont also suggests that Trump provided “an empowering narrative” for the working class “who are often perceived as “the losers of the system”. (p 165). Early in the book, she notes:

“Instead of depicting ‘everyday Americans’ as ‘deplorables’, as Hillary Clinton was perceived to do in the 2016 presidential campaign, her opponent Donald Trump affirmed their worth in his various electoral speeches, explaining their loss of social status as a result of globalization and immigration.” (p 8)

Lamont’s narrative

The title of Lamont’s book, “seeing others”, refers to “acknowledging people’s existence and positive worth, actively making them visible and valued, reducing their marginalization, and openly integrating them into a group”. (p 6) She suggests that having one’s sense of worth affirmed “is a universal need that is central to our identity as human beings and our quality of life”. (p 7) She urges that we “bridge boundaries with those who are different” via “ordinary universalism”, or “emphasizing similarities over differences”. (p 144)

I don’t object to those sentiments, and I doubt whether many other neoliberals would either. It is certainly appropriate to recognize that ordinary universalism can be “a vital counterweight” to “Nationalist populism, Islamophobia, and xenophobia” which “are on the rise in many countries”. (p 146) As an advocate of ordinary universalism, however, I think it is unfortunate that the author was not sufficiently “inclusive” to recognize that anti-Semitism also belongs on that list.  

I also object to the idea that “individualist approaches” to improving wellbeing “may harm more than they help, since they pull people’s attention away from more meaningful efforts”. (p 48) The author seems to be suggesting that excessive attention is given to approaches that help individuals to improve their assessments of their own worth. Instead, she urges:

“We need to ask ourselves hard questions about how we decide who matters and what we can do to create a more inclusive society.”

It seems to me that people who are lacking in regard for their own worth are unlikely to make a positive contribution to ensuring that the worth of others is appropriately recognized.

Much of the book is devoted to a discussion of how it is possible to change hearts and minds in order to reduce stigmatization of marginalized groups, and thus build a more inclusive society. That discussion is largely beyond the scope of this essay.

In Chapter 7, however, the author discusses the result of a survey of the attitudes of Gen Z students (aged 18 to 23). She seems a little perplexed that Gen Z tend to “embrace some neoliberal ideals – hard work and success” but is pleased that they “combine personal professional aspirations with the promotion of collective well-being”.

The author claims that apart from “the wealthiest of the wealthy” every other group “finds itself reeling from an onslaught of difficulties, disappointments, and anxieties, grasping for dignity and stability”. (p 47) That is implausible and seems at odds with her message about destigmatization of marginalized groups. However, it fits well with another theme of Lamont’s narrative.   

As already mentioned, Lamont suggests that Trump provided “an empowering narrative” for the working class. She suggests that the Democratic party should counter that with “messages of solidarity and dignity”:

Redirecting working class anger toward the one percent is more likely to sustain fruitful alliances than driving wedges between diverse categories of workers who have so much in common.” (p 159)

Is Lamont’s narrative good?

It seems to me that appropriate criteria to consider whether a narrative is good include whether it encourages ethical behaviour and whether it is factually accurate.

Regarding ethical behaviour, Michèle Lamont seems to be seeking to “mobilize” good narratives when she suggests:

“We engineer our world together by mobilizing narratives that expand recognition of who is worthy.”

Leaving aside engineering, the message she is attempting to convey seems to be that narratives have a role in reinforcing the ethical intuition that we should respect other humans and behave with integrity toward them, irrespective of gender, sexual preference, race, nationality, religion, wealth, social status, political affiliations etc. I am not entirely convinced that she would include ideological opponents among those who are “worthy”, but she does acknowledge that “it is worth trying to understand even people we may strongly disagree with”. (p 159).   

On the question of factual accuracy, Lamont’s narrative, which suggests that the workers have reason to be angry with the wealthy one percent, seems to me to be just as questionable as Donald Trump’s narrative which suggests that the workers have reason to be angry about globalization and immigration. Neither of those narratives promotes an accurate understanding of economic reality.  

Conclusion

In this essay I have examined Michèle Lamont’s narrative that neoliberalism encourages people to either internalize blame for misfortune or to seek scapegoat groups to blame. My conclusion is that her claim that neoliberalism encourages people to internalize blame is baseless. Her claim about seeking to blame scapegoat groups seems to be based on the false belief that Donald Trump is a neoliberal.

Good narratives should encourage ethical behaviour and be factually accurate. One of Lamont’s objectives in this book seems to be to “mobilize” good narratives that reinforce the ethical intuition that we should behave with integrity toward all other humans. However, the factual accuracy of her narrative that workers have reason to be angry with the wealthy one percent is highly questionable. If accepted by governments that approach would encourage unethical redistributions of incomes and further dampen incentives that are essential to the ongoing growth of widespread economic opportunities.


Monday, January 8, 2024

Was British colonial government as bad as modern critics would have us believe?

 


Nigel Biggar acknowledges that British colonialism contained evils and injustices, but he judges it to have been much better than its modern critics would have us believe.


Biggar directs the McDonald Centre for Theology, Ethics, and Public Life at Oxford University. His aim in writing his recently published book, Colonialism: A MoralReckoning, was to provide a moral evaluation of British colonialism, rather than a history of it.

 As indicated in the passage quoted above, Biggar argues that many of the modern critics of British colonialism have an unscrupulous indifference to historical truth. He suggests that the controversy over empire is really about the present, rather than about the past. The real target of today’s anti-colonialists is “the Anglo-American liberal world order that has prevailed since 1945”. They denigrate the historical record of “the West” in order to corrode faith in it. He writes:

“What is at stake is not merely the pedantic truth about yesterday, but the self-perception and self-confidence of the British today, and the way they conduct themselves in the world tomorrow.”

Everyone who has regard for human rights, rule of law, and democracy should encourage British people to continue to be forthright in their advocacy of these ideals.

The focus of criticism

Biggar documents why modern critics of British colonialism are unfair in claiming that it was characterised by racism. He highlights three main examples:

The critics emphasize British links to the slave trade in the 17th and 18th centuries, but overlook the leading role that the British government played in ending slavery in the 19th century.

The critics emphasize instances of appalling racial prejudice but ignore policies that were driven by the conviction of the basic human equality of the members of all races.

Some critics slanderously equate the actions of British colonial authorities with those of the Nazis by claiming that they were engaged in genocide. They don’t acknowledge the efforts of colonial authorities to protect native peoples from harmful encounters with settlers.

Benefits of British colonialism

Biggar also documents many benefits of British colonialism. One of the points he makes is that it “brought up three of the most prosperous and liberal states now on earth – Canada, Australia, and New Zealand”. My friends in the United States can take comfort from the fact that the American revolution served to educate the British about the desirability of allowing those former colonies to govern themselves.

More generally, British colonialism promoted free trade, created peace in the colonies, developed public infrastructure, made foreign investment attractive, disseminated modern agricultural methods, disseminated medical knowledge, and “provided a civil service and judiciary that was generally and extraordinarily incorrupt”.

I will focus here on the quality of the civil service and judiciary.

Quality of governance

As a classical liberal, I am inclined to the view that less governance is better than more, and that governance imposed by foreigners is particularly obnoxious. Could it have been possible for the quality of governance offered by the British to have been better than the alternatives on offer during the colonial periods?

That seems likely to have been the case in many instances. Biggar notes that many local rulers in India wanted the British to secure power to obtain advantage over their rivals - they preferred British rule to indigenous alternatives including ongoing local wars. It is not obvious that any real-world alternatives to British colonialism in Australia and New Zealand (e.g. colonization by another European power) would have provided greater protection to indigenous peoples. In the absence of British colonialism in Africa, it is likely that the slave trade would have persisted to a greater extent, aided by the expansion of militant Islam, and internecine wars that were an ongoing source of slaves.

It is not difficult to understand why people working for British colonial administrations in the 19th and 20th centuries developed a reputation for being largely incorruptible. It is even possible for me – a person who subscribes to the private interest theory of regulation - to understand that when organisations develop a culture that is strongly opposed to corrupt behaviour, individual members tend to obtain a great deal of satisfaction – a sense of mission - from upholding that culture.

Biggar notes:

“Back in the closing decade of the eighteenth century, Lord Cornwallis’ insistence that officials in the East India Company should live on their salaries, give up private trading and resist bribes ‘helped to create a civil service that became widely regarded as incorruptible and just, one that even Indian nationalist newspapers would later regard as ‘absolutely above suspicion’ and ‘the high water mark of morality in the public service of the country’, and as beyond being ‘bribed to do anything.”

Biggar devotes quite a few pages of his book to quoting subjects of colonial rule who were full of praise for British colonial rulers. He also notes that in the 1950s several million Chinese voted with their feet to leave the communist Chinese mainland and live under British colonial rule in Hong Kong.

Conclusion

The modern critics of British colonialism have no reason to be concerned that it is about to make a comeback. Their reason for seeking to denigrate it is to undermine the ongoing efforts of people in Britain, and some of its former colonies, to promote the ideals of a liberal world order. Nigel Biggar’s book makes an excellent contribution to public discussion of the issues by pointing out that many of the critics have an unscrupulous indifference to historical truth.


Sunday, November 26, 2023

Does stakeholder capitalism contribute to human flourishing?

 


Many people reading this are likely to view the use of stakeholder terminology by business leaders as little more than a public relations tool. That is certainly how I have viewed it in the past. If you are a business owner, or executive, who wants to encourage employees, suppliers, customers, and community members to feel loyalty to your business, it makes sense to acknowledge that they may also have a stake in seeing it prosper. And it does no harm to remind governments of their stake in the prosperity of your business via its contributions to tax revenue.

However, I have recently come to associate stakeholder terminology with stakeholder capitalism. That ideology has close links to the concept of corporate social responsibility (CSR) and the increased tendency of businesses to seek rewards from governments for pursuit of environmental and social goals (ESG). Reading about stakeholder capitalism has added to my previously expressed concerns that such interactions between business and governments are leading liberal democracies more deeply into a corporatist quagmire.

Stakeholder capitalism


Michael Rectenwald’s book, The Great Reset and the Struggle for Liberty, has persuaded me that in advocating stakeholder capitalism, Klaus Schwab, the founder of the World Economic Forum (WEF), has in mind a corpus of ideas and policies that are fundamentally opposed to free markets and classical liberalism. Moreover, the WEF may have sufficient influence among powerful elites to eliminate the already dwindling influence that classical liberalism has been having on public policy.

Rectenwald’s book was written in response to a book by Klaus Schwab and Thierry Malleret entitled Covid-19: The Great Reset, which was published in 2020. Rectenwald draws attention to the open espousal of policies opposed to free markets in that book. Schwab and Malleret welcomed the possibility that governments might take advantage of the pandemic “to permanently increase their role”, and eliminate classical liberalism, which they refer to as neoliberalism. They write:

“COVID-19 is likely to sound the death knell of neoliberalism, a corpus of ideas and policies that can loosely be defined as favouring competition over solidarity, creative destruction over government intervention and economic growth over social welfare. For a number of years, the neoliberal doctrine has been on the wane, with many commentators, business leaders and policy-makers increasingly denouncing its “market fetishism”, but COVID-19 brought the coup de grâce.”

They go on to predict:

“Shareholder value will become a secondary consideration, bringing to the fore the primacy of stakeholder capitalism.”

Klaus Schwab has been advocating stakeholder capitalism for over 50 years, and has been influential in having that concept endorsed at international meetings of powerful people from business and government. The first Davos Manifesto, signed in 1973 states:

“The purpose of professional management is to serve clients, shareholders, workers and employees, as well as societies, and to harmonize the different interests of the stakeholders.”

The 2020 Davos Manifesto is titled: “The Universal Purpose of a Company in the Fourth Industrial Revolution”. It includes similar sentiments to the 1973 Manifesto, but goes on to state, among other things:

“B. A company is more than an economic unit generating wealth. It fulfils human and societal objectives as part of the broader social system. Performance must be measured not only on the return to shareholders, but also on how it achieves its environmental, social and good governance objectives. Executive remuneration should reflect stakeholder responsibility.”

Some CEOs would welcome a long muddled list of performance objectives because it offers them the opportunity to “do their own thing” and provide ready-made excuses for poor performance. Others would prefer to see governments pursue social and environmental objectives by more efficient mechanisms, and to have their own performance judged according to more tangible benefits to shareholders. How does the WEF propose to encourage compliance with its Manifesto?

The WEF’s ESG Index

The WEF published a report in 2020 setting out metrics for measuring company performance with regard to ESG goals. The title of the report is  Measuring Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of Sustainable Value Creation.

A mechanism for grading companies in terms of their environmental, social, and governance practices and plans might be thought to offer useful information to investors and consumers who concerned about the environmental and social impacts of their decisions. However, Rectenwald points out that it also has potential implications for interactions between business and government:

“Woke planners wield the Environmental, Social, and Governance (ESG) Index to reward the in-group and to squeeze non-woke players out of business.”

Ideological reach

In a recent Newsweek article, Jon Schweppe asks, Why did corporations go ‘woke’? His response, in brief, is that “this is part ideology, part price of admittance to an elite club, and part protection racket – doing everything one can to avoid upsetting the mob”.

Rectenwald’s book suggests to me that the WEF should come to mind following any mention of “ideology” and “an elite club” in this context. The corporate partners of the WEF include over 1000 of the world's largest business organisations. The annual meeting of the WEF in Davos is an invitation-only event but is widely reported in the media. Many notable political leaders, journalists etc. have been members of the Forum of Young Global Leaders, which is reserved for people under 40 years of age who show promise of global leadership. In addition, the WEF’s Global Shapers movement, a training camp for young change-makers (under 30 years old) has over 10, 000 active members.

Implications

Rectenwald points out that because ESG is “an impressionistic, qualitative, metric” it exposes business leaders and companies to the whims of woke arbiters. He cites the recent experience of Elon Musk who has been unfairly besmirched because he may have benefited from an emerald mine owned by his father in South Africa during the apartheid era. He sums up:

“In today’s political economy, satisfying shareholders, employees, and customers to earn profits has become less important for corporations than ingratiating the woke cartel and the governments that support it.”

Rectenwald’s book goes on to discuss possible implications for individual liberty of potential innovations such as an individual carbon footprint tracker, but in this essay I want to stick with the implications of stakeholder capitalism.

The Hayek quote at the beginning of the essay suggests another important implication of stakeholder capitalism. The quoted passage is from Law, Legislation, and Liberty (v3, p 82). The context of the quote is a paragraph in which Hayek is responding to the idea that large corporations should be required to consider the public or social interest. He suggests that “as long as the large corporation has the one overriding duty of administering the resources under its control as trustee for its shareholders its hands are largely tied; and it will have no arbitrary power to benefit this or that particular interest”. The paragraph ends by suggesting that obliging large corporations to consider the public interest gives them uncontrollable power that “would inevitably be made the subject of increasing public control”.

There is also reason for concern that obliging corporate managers to adhere to ESG will make them less accountable for productivity performance of enterprises because it will be difficult for company boards to assess the veracity of claims that performance has been adversely affected by ESG. Wokeness can be expected to provide a cover for inefficiency.

I acknowledge that stakeholder capitalism may have some positive implications for human flourishing, that should be offset against the negative implications discussed above. For example, in my book Freedom, Progress, and HumanFlourishing, I note that the difficulty that governments have been experiencing in agreeing upon concerted international action to combat climate change was ameliorated by the actions of business organisations in planning for a carbon free future.

Nevertheless, as I also argue in that book, there is more reason to be concerned about the implications of declining productivity growth than about climate change. By further reducing productivity growth, stakeholder capitalism seems likely to cause a great deal of economic misery.

Unfortunately, major economic crises will probably need to be endured before political leaders inspired by classical liberalism emerge once again to implement the public policy reforms that are needed to restore free markets.


Tuesday, September 12, 2023

Where have the supporters of capitalism gone?

 

Cartoon by Peter Nicholson from “The Australian” newspaper: www.nicholsoncartoons.com.au

Some erstwhile supporters of capitalism probably don’t realize that they have gone missing. They still support private ownership of property and businesses, and may claim to see merit in the profit motive. However, they overlook that capitalism also involves “prices, production, and the distribution of goods that are determined mainly by competition in a free market”.

The quoted words are from the Merriam-Webster definition of capitalism. Use of a definition from an American dictionary seems appropriate because the supporters of capitalism who have gone missing seem to me to be mainly Americans. That is unfortunate because Americans were once the world’s strongest supporters of capitalism.

In Australia, most of the people I hear talking about capitalism seem to use it as a term of disparagement. The people who support capitalism talk about free enterprise and economic freedom.

I have the impression that it is fairly common outside of America for supporters of capitalism to avoid using the word because it is commonly viewed as a term of disparagement. That may stem from the word’s origins. When I was growing up, someone told me that Karl Marx had invented the word. That is not correct. Marx rarely used the word. He preferred to describe capitalism as “the capitalist mode of production”. Nevertheless, even in America the term was apparently considered to be a socialist expression until well into the 20th century.

In the latter half of the 20th century, the strongest supporters of capitalism had no qualms about using the word. Milton Friedman used the word in the title of a book, Capitalism and Freedom. Friedman made it clear that he was writing about “competitive capitalism – the organisation of the bulk of economic activity through private enterprise operating in a free market”. Ayn Rand used the word in the title of a book, Capitalism: The Unknown Ideal. She defined capitalism as “a social system based on the recognition of individual rights, including property rights, in which all property is privately owned”.


Where have America’s supporters of capitalism gone? Johan Norberg prompted me to think about that question as I was reading his latest book,
The Capitalist Manifesto: Why the Global Free Market Will Save the World. This book is a follow-up to In Defence of Global Capitalism, which Norberg wrote about 20 years ago. Globalization has now become a dirty word to many erstwhile supporters of capitalism, but Norberg remains a strong defender of global capitalism.


Who opposes the free market?

One of the most interesting contributions of Norberg’s new book is his account of the changing opposition to the ideal of a global free market. Norberg wrote In Defence of Global Capitalism to counter the arguments of left-wing activists who mistakenly believed that free trade, foreign investment, and multinational corporations were making the world’s poor even poorer. George Monbiot, Oxfam, Bono etc. eventually began to see some merit in free trade, but opposition then migrated to economic nationalists on the conservative side of the political spectrum.

Norberg suggests that the opponents of globalization share an underlying misconception that it is a zero-sum game – someone’s gain is another one’s loss:

“The worldview is the same, the roles are just reversed – twenty years ago free trade was considered bad because we exploited them, now it is considered bad because they exploit us.”

Norberg seems to assume that most readers will already understand why free trade is a positive-sum game – beneficial to both importers and exporters. He uses colourful illustrations to reinforce the point:

“Free trade allows the farmer to grow a new mobile phone in his wheat field, the textile worker can sew a new motorbike and the author can (if lucky) write a holiday trip to Tuscany.”

The author argues that free enterprise is primarily about “opening the dams of human creativity – to let everyone participate and test their ideas and see if they work”.

The opposition of economic nationalists to free trade is associated with the narrative that during the early years of the 21st century, cheap imports from China caused deindustrialization and wage stagnation in the United States.  Norberg’s most important contribution seems to me to be in challenging that narrative. He makes the point that the loss of jobs in manufacturing is attributable largely to automation rather than import competition. He suggests that the slow-down in wages growth in the US dates from the mid-1970s, reflecting a necessary correction of cost levels because wages had previous been growing faster than productivity. The Rust Belt apparently lost more jobs in the decades before globalization reached the US, than it has in recent decades. The share of manufacturing jobs in the US declined more rapidly prior to 2001, when China was admitted to the World Trade Organisation (WTO), than it has in the decades since then.

 Fear of China

Economic nationalists suggest that the involvement of China in international supply chains has been particularly problematic because of the theft of technology. Norberg points out that China has been by no means unique in that respect. The US itself apparently once had a policy of smuggling inventions and bribing European artisans to reveal their secrets. There is evidence that the Chinese government has a relatively good track record in following WTO rulings relating to disputes about intellectual property and government subsidies.

Norberg acknowledges the potential for Chinese investment in digital and physical infrastructure to pose a security threat because the Chinese government views Chinese companies as its agents. He points out that this does not mean that the US and its allies were wrong to encourage China to open up to the outside world. He suggests that if China had not opened up, it is much more likely that the Chinese people would have generally perceived Westerners as irreconcilable opponents. He fears that use of trade barriers to isolate China could strengthen the most reactionary and nationalist forces in China.    

Leviathan’s helpers

Where have the capitalists gone? Many business owners and executives now seem to spend less time on conventional entrepreneurial activities than on seeking to ingratiate themselves with politicians and bureaucrats who are engaged in active industrial policy.  

The chapter in The Capitalist Manifesto entitled “Picking Losers” should be of particular interest to Jim Chalmers, Australia’s Treasurer. In his article in The Monthly (Feb 2023) Chalmers wrote:

“As the influential economist Mariana Mazzucato has explored in her work, markets built in partnership through the efforts of business, labour and government are still the best mechanism we have to efficiently and effectively direct resources.”  

Johan Norberg has quite a lot to say about Mariana Mazzucato’s naïve views. I will not attempt to provide a summary here because it might spoil the fun for readers. However, I particularly liked this sentence:

 “Governments are bad at picking winners, but losers are good at picking governments.”

That observation seems particularly relevant to Australia at present.

Concluding remarks

In focusing on reasons why support for capitalism has declined, I have failed to mention many of the virtues of capitalism discussed in The Capitalist Manifesto. For example, I was particularly interested in what Johan Norberg had to say about the relationship between capitalism and various aspects of happiness, in his chapter on “the meaning of life”.

I began by noting that many supporters of capitalism are reluctant to use the word because socialists have historically used it as a term of disparagement. I commend Johan Norberg for writing a capitalist manifesto. In doing that he is following in the footsteps of great advocates of economic freedom who had no qualms in talking about the virtues of capitalism.

In this book, Norberg has provided an interesting account of how many erstwhile supporters of capitalism have come to oppose global free markets. The most important contribution of the book, in my view, is the challenge it offers to the narrative that cheap imports from China have caused deindustrialization and wage stagnation in the United States.


Tuesday, June 13, 2023

What determines how much liberty people enjoy in different countries?




 An obvious answer to the question posed above is that governments determine how much liberty people enjoy. But that response may be too glib. Some argue that much restriction of liberty reflects prevailing values of people who see individual autonomy and personal choice as a threat to collective interests of groups and nations.

When I began the research which led to this article, I sought to explore the extent to which international differences in personal and economic freedom can be explained by deep-seated cultural values. My conclusion is that there is a large residual variation which is attributable to ideologies of governments that support or oppose free markets and personal liberty.

This conclusion is illustrated in the graph shown above. However, you will need more information about how the graph was constructed before you can get the picture.

  • The graph shows the levels of economic and personal freedom for 85 countries using the Fraser Institute’s latest data (for 2020). There are 165 jurisdictions covered by the Fraser indexes, but relevant data on values from the latest round (2017-22) of the World Values Survey (WVS) was only available for 85.
  •  The vertical axis of the graph is in reverse order – low values of personal freedom at the top, high values at the bottom. The reason stems from use of personal political compass data which is constructed in that way in an earlier article on this blog. 
  • The horizontal and vertical axes are positioned at the median levels of economic and personal freedom for the 165 jurisdictions covered by the Fraser indexes. The countries not covered by the WVS tend to have lower freedom ratings than those which are covered. The median ratings for the 85 countries represented in the graph is 7.2 for economic freedom and 7.6 for personal freedom.
  • I have only labelled data points that have freedom ratings that are substantially different from predictions based on deep-seated cultural values. The methods used to obtain predicted values for personal and economic freedom were explained in preceding articles on this blog (here and here). If you live in a high-income liberal democracy, that country is likely to be represented by one of the unlabelled points in the south-east quadrant - with relatively high levels of economic and personal freedom.
  • The colour of the labelled points depends on whether freedom is greater than or less than predicted on the basis of values – green if greater than predicted, red if less than predicted. The size of the labelled points is larger if both personal and economic freedom are greater than or less than predicted.

 It is apparent from the graph that it is difficult to explain why countries have low personal and economic freedom ratings simply by reference to prevailing values in those countries. Most of the countries in that category have freedom ratings that are lower than predicted on the basis of values. The political ideologies followed by the governments of those countries provide an obvious explanation for their suppression of liberty.

The graph also shows that a substantial number of countries with relatively high personal and economic freedom are performing better in that regard than can readily be explained on the basis of prevailing values.

More detailed information for the countries which have freedom ratings substantially different from predicted levels is shown in the graph below.

 


Of the 34 countries with freedom ratings that are substantially different from predicted levels, Argentina is the only one to have one category of freedom greater than expected and the other category of freedom less than expected.

Questions to ponder

Are relatively high levels of human freedom less secure in countries in which freedom is greater than prevailing values seem to support? If a high proportion of the population feels that existing policy regimes are not aligned with their personal values, these regimes could be expected to be fragile, other things being equal. However, much depends on those “other things”. The growth of economic opportunities could be expected to be greater in the presence of relatively high levels of economic freedom. That could be expected to foster values that support economic freedom. The growth of economic opportunities also tends to encourage development of emancipative values which support personal freedom.

Are relatively low levels of human freedom less likely to persist where prevailing values support greater freedom? Again, policy regimes giving rise to such outcomes could be expected to be fragile, other things being equal. Unfortunately, however, the “other things” often include use of coercion to suppress opposition to existing policy regimes.

Postscript: 16 June, 2023

I have now made an effort to explore whether some of the above speculations have empirical support. This involved repeating the exercise of obtaining predictions of personal freedom - using WVS data from the 2010-14 to obtain predictions of personal freedom for 2012. It was possible to obtain matching data for only 53 countries. 

There is some evidence that personal freedom is less secure in countries in which freedom is greater than prevailing values seem to support. Of the 6 countries in which personal freedom was much greater than predicted in 2012, only one had higher personal freedom in 2020, another had unchanged personal freedom and the other 4 had lower personal freedom.

The exercise provided no support for the proposition that relatively low levels of personal freedom are less likely to persist when prevailing values support greater freedom. Of the 6 countries in which personal freedom was much less than predicted, none had higher personal freedom in 2020, and 2 experienced a further decline in personal freedom. Unfortunately, over this period none of the repressive regimes were displaced or became more responsive to prevailing values of the people.