High inequality, low integration – two sides of the same coin?

October 20, 2014 by · Leave a Comment
Filed under: Politics, Public policy, The RSA 

Today sees the second report of the Social Integration Commission, which I chair. It has been published on the same day as the 2014 State of the Nation report of the Social Mobility Commission and there are important overlaps between the reports: Inequality and segregation go together and fuel each other…….

The Social Integration Commission’s first report – which received extensive coverage earlier this year – revealed the degree of poor integration which persists alongside the growing diversity of the British population.  We highlighted that a lack of integration is an issue for all groups. White Britons are as likely to have unrepresentative social networks as people from other ethnic backgrounds, and Londoners’ networks are amongst the furthest away from reflecting the make-up of the communities in which they live.

We also found that one of the most significant areas of poor integration is between people from different social classes. This lack of integration has important and worrying implications for cohesion and economic inclusion.

It is poignant that the Commission’s second report is published on the same day as Alan Milburn’s damning assessment of the UK’s faltering anti-poverty strategy. Our willingness to tolerate poverty and the diminished life chances of poorer citizens is surely not unrelated to the lack of interaction and friendship between our social elite and the disadvantaged. Indeed there is international evidence that inequality levels and mean policies towards the poor go hand in hand with levels of prejudice. The more we think of the disadvantaged as different people to ourselves the less sympathy we have for them and the less support we are liable to give to measures to tackle exclusion.

Milburn’s report makes a number of powerful recommendations, but as I pointed out in my 2011 annual lecture the philosophical and political arguments for greater social justice need to be underpinned by a culture of empathy for those different to ourselves.

Today’s Social Integration Commission’s report provides evidence of the consequences and costs of poor integration for individuals and society. The figures we give in relation to employment, recruitment and career progression, and community health and well-being are estimates; however, using the most robust methodology available and erring on the side of caution, the evidence suggests an overall financial cost to the UK of approximately 0.5 per cent of GDP.

Equally importantly, the report contains important new research showing that people gain from better integration and that the small steps taken to help people mix lead to significant benefits in the future.

UK society is a tolerant society that has coped pretty well with some of the potential tensions of increasing diversity; despite some of headlines we have garnered this morning, it is not the Commission’s intention to spread doom and gloom or to be alarmist. I would summarise our argument as follows: tolerance is not enough, but it need not be hard to do more. Exactly what that ‘do more’ might involve will be the focus of our final report.

Our final recommendations will focus not only, or even mainly, on the role of government but on the things that other sectors, agencies, communities and individuals can do to make sure that the UK’s trajectory towards better integration more closely matches its trajectory towards greater diversity.

In all these debates we should ask what we can do ourselves. Of course, a great deal of the RSA’s research and development  seeks to address aspects on social justice, but as CEO of an organisation with a funding model which relies on Fellows who can afford to make an annual donation I am acutely aware that the Society is just the kind of place to which recommendations from the Social Integration Commission’s final report will be addressed. Fortunately we have at least one bit of good practice to celebrate.

I was in Wales on Saturday for the RSA. It was positive event with a very impressive range of Fellows in attendance. Part of what made it good was the role played by two young people recruited as part of the RSA’s Centenary Young Fellows appeal. I hope we can build on the success of CYF to open up a continuous route for younger people to the Fellowship and that we can also explore how we might use other mechanisms to increase the Fellowship’s diversity.

It is also vital to recognise that even if our annual donation and joining criteria are somewhat restrictive that doesn’t mean we can’t engage a more diverse group of non-Fellows as partners in our work, as many of our best regions and networks already do.

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The nature of the present crisis

September 9, 2014 by · 9 Comments
Filed under: Politics, Public policy, The RSA 

As my colleague Adam Lent has argued, whether the result is disaster or near death experience for the UK the way the Scottish referendum campaign has unfolded is the most powerful indication yet of the enfeeblement of the Westminster political elite. Other consequential possibilities for humiliation loom large, including a strong showing for UKIP at the next General Election and a vote to leave the European Union. Whatever the virtues of Scottish independence, Mr Farage and national sovereignty there is no doubt each cause benefits hugely from our loss of faith in an establishment which has in one form or another held sway since the emergence of modern Parliamentary democracy in the mid nineteenth century.

People are angry about other people, about their own lives and about the state of their country. After first blaming each other the politicians promise to address the causes of our anger but virtually no one – including, one strongly suspects, themselves – believes a word of it. It is human to focus on the personalities but vital that we interpret the legitimacy crisis as more than a unfortunate coming together of events and poor leadership.

Think of it this way. For the overwhelming majority of human beings for nearly all of our evolution from nomads to particle physicists three conditions applied. First, we only knew much about, or engaged with, people much like ourselves. Those unlike us were assumed to be enemies or curiosities. Second, we lived under conditions of scarcity with relatively simple material expectations and needs. Third, we accepted and generally deferred to relatively fixed hierarchies of power and prestige based on religion, bloodline or more latterly class.

Since the Enlightenment, with occasional backtracks and by-ways, the West has been accelerating ever faster away from the conditions in which our social character and deep culture developed. Things cannot be reversed. Nor should they be because the progressive future involves transcending these conditions to reach a higher stage of human flourishing. This is the stage of cosmopolitan citizens inhabiting a cosmopolitan world. It is stage in which individual aspiration is focussed on the things that make life most enjoyable and fulfilling; friendship, generosity, autonomy, creativity. This is the stage where we govern ourselves identifying, discussing and solving problems together naturally and continuously in ways in which we only now occasionally do in the very best or very worst of circumstances.

But we now inhabit a disorientating and dark twilight world. Forced to live among strangers and in a shrinking world but not knowing how to understand, empathise and collaborate with those different to ourselves. Obsessed with an individualistic and materialistic account of success and achievement and then either finding it we can’t attain it or – almost as bad – that it is meaningless when we do. Unwilling to be governed but not yet willing or able to govern ourselves.

(Note that that each of these transitions concerns broadly one of the three main forms of social power; respectively solidarity, individual aspiration and authority. Each of the three cylinders which pump the engine of progress is cracked. This is why rich, technologically advanced, reasonably well educated societies seem unable to solve many of their biggest challenges; for example, tackling inequality, responding to population ageing, facing up to climate change.)

If this all seems too big and too abstract it can be brought back to topical concerns. The first painful transition from tribalism to cosmopolitanism is reflected in wars of religion and identity, the upsurge of anti-immigrant feeling or the inability of international governance to cope with international problems. The second, from scarcity to post materialism, is reflected in rage about living standards, in massive personal debt and in the various ailments of affluence. And the third, from tradition and deference to self-government in our current contempt for our leaders, only surpassed by the incoherence of our collective aspirations (as Ben Page from IPSOS Mori famously put it ‘the British people know what they want. It is very clear: American tax rates and Swedish public services’).

Thus the immediate crisis is a shallow and dispiriting manifestation of a shift which is more profound and difficult but which, hard though it is to believe, contains the possibility of a leap forward for humanity. Of course, huge generalisations are involved in this chronology: the future is already out there and the past clings on like burnt fat on a frying pan.

What then is to be done? First, progressives – however critical they are of the present – must never forget their belief in progress. Whilst the big picture still leaves lots of scope for debate about what to do next, we must keep always in view the vision of the cosmopolitan, post materialist, self-governing future. Indeed we should work harder to describe a practical utopia; what such a world might look and feel like.

Second, while the steps to transition will, in the main, be taken by us not for us, right now we need leadership like rarely before: Leaders who can confront us with the truth of the current crisis and inspire us with the possibility of transformative progress. Instead we have futile and dishonest promises to slash immigration, to extricate ourselves from global interdependency, cut taxes or energy bills, restore trust to politics by electing this career politician in hoc to his increasingly unrepresentative party not that career politician in hoc to his increasingly unrepresentative party. The sight of the Clegg, Miliband and Cameron postponing their enmities, defying convention and marching on Scotland shows both that it is possible to act differently and that it takes an emergency for political leaders  to accept the need to question their stock responses.

When we as individuals face personal crisis, our first response may be to do differently but our eventual realisation may be the need to be differently. Trapped by our decaying democratic systems and the disastrous idea that politics is analogous to retail consumerism, our political elite run in circles trying to discover what they can do to address our rage. Instead we must encourage them to link social transformation to personal transformation by questioning deeply the very idea of what it is to be a leader – a creative leader – in these troubled times.

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‘Creative communities with a cause’

April 29, 2014 by · 11 Comments
Filed under: The RSA 

I have been trying to use my preferred way of thinking about human motivation and social power to develop the RSA’s emerging world-view, ‘The Power to Create’. In this regard I am grateful for an idea given to me by public intellectual and social innovator Charles Leadbeater (who will be speaking soon at the RSA about his new book ‘The frugal innovator’.

Charlie tells me that from his own direct observations he has come to the conclusion that the most innovative and successful organisations are ‘creative communities with a cause’. The potential synergy between my simplified application of cultural theory and the goal of greater creative capacity is obvious (well, to me, at least): Broadly, the three ‘c’s in Charlie’s phrase line up respectively with the three sources of social power in my account; the individualistic (creative), the solidaristic (communities) and the hierarchical (cause).

A concern with The Power to Create has been its lack of ethical substance; looking out on the inequalities and wastefulness of modern society the question asked is ‘whose power to create what?’ A focus on the role of human drives in the effectiveness of organisations, people and places doesn’t solve this problem, but it might help.

Going in reverse order, consider the critical polarities for each drive:

Hierarchy/’cause’

The production and maintenance of rationality is often the role assumed by leaders and the hierarchical systems over which they preside. But in his study of bureaucracies (of which he was generally a fan), Max Weber made the powerful distinction between substantive rationality (directed at ends/outcomes/values) and procedural rationality (directed at means/procedures/rules). Organisations are established to pursue substantive rationality but over time, as they become institutionalised, procedural rationality often starts to dominate.

By the idea of ‘cause’ Charlie’s description of the most effective organisations implies leaders who maintain a focus on substantive (value) based rationality rather than procedural (process based) rationality. Interestingly, there is growing emphasis in debates about corporate responsibility of the ideal of purpose driven organisations.

Solidarity/’community’

People on the left often assume that solidarity is their kind of thing. But this human drive – based on shared norms, identity and values – is characteristic of racist populism as well as workers’ cooperatives. The key polarity here may be between ‘solidarity for’ and ‘solidarity against’, both in term of identity (an expansive versus an exclusive bond) and mobilisation (cooperation to develop solutions versus cooperation simply to mobilise protest).

The context in which Charlie uses the word ‘community’ implies an expansive idea based on a constructive activity.

Individualism/’creative’

The Power to Create is an alternative to a previous, less stirring, definition of the RSA’s mission, namely ‘enhancing human capability’. A focus on capability points to the key polarity when it comes to the individualistic drive. This is between the fulfillment of individual appetites (for stuff, power, wealth or whatever) versus a notion of human development. There are many versions of the latter and RSA folk are particularly keen on that of Robert Kegan but the key point is that this is an idea of individual aspiration linked to self-discipline and self-knowledge as well as self-expression.

By using the descriptor ‘creative’ the implication of Charlie’s phrase is that the individualist drive in the most effective and innovative organisations is directed to personal growth and pride in craft rather than success measured only by income or promotion.

For me the most intriguing aspect of the Power to Create is that it implies two distinct but overlapping ideals, one with a primarily idealistic rationale and the other responding to more practical imperatives: first, citizens being able to create the lives they choose; second, an economy and society characterised by mass creativity.

The kind of creative organisations, places and societies needed to pursue both these goals would, according to this account, tend to exhibit leadership based on substantive rationality, forms of solidarity that are inclusive and constructive, and a developmental model of individual aspiration.

Certainly, as we look at the largely depressing tableau of modern politics and public discourse, to make the case for idealistic leadership, for forms of belonging which are generous and optimistic and a model of human success which is to do with being rounded productive citizens rather than wealth-hoarders or consumers – well, it seems pretty revolutionary.

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Old states, new technologies

April 24, 2014 by · 3 Comments
Filed under: The RSA 

I agree with Adam Lent. There is no fundamental reason why the accelerating capacity of new technology to undertake tasks previously the domain of skilled humans should lead us to be pessimistic about the prospects for social progress. All things being equal, rising productivity driven by technological advance provides the basis for sustained economic growth and sustained economic growth (especially if that growth is focussed on the quality not the quantity of production) should mean more people being able to pay each other to have their needs met and desires fulfilled.

But, of course, all things are not equal. As Andrew McAfee and Erik Brynjolfsson recognise in ‘The Second Machine Age’ the impact of technological change both reflects and reinforces aspects of the social arrangements in which it appears. Neither economic nor technological determinists are right, as Evgeny Morozov has argued, different technologies interact with social reality in ways which reflect specific aspects of each. For example, email is functional for bureaucracies while social media tends to be disruptive and Twitter can be effective both as a way of mobilising protest and as a means to monitor dissent.

Thus the biggest danger of the coming third industrial revolution/second machine age (or whatever we choose to call it) is that it has the potential to map onto and further widen inequality in an era when national Governments seem particularly powerless to intervene on behalf of the greater good. Imagine if Google had been invented in the 1950s (yes, I know that was before the internet but stick with me): It would have been assumed that such a ubiquitous and essential service which makes its money largely out of expropriating other people’s labour (content) would have been at the very least highly regulated and taxed and more likely brought into public ownership.

Among the characteristics which lead McAfee and Brynjolfsson to believe that intelligent computing power will further widen inequality are these: it is only the most creative and ‘special’ people who will still have something to offer than robots don’t; and digitally based innovations can spread very quickly making huge monopoly profits for inventors and investors until another innovation comes along to make another killing for another group of super clever or super rich individuals.

Another related factor concentrating power and wealth are network effects which mean that the bigger the market share achieved by a platform, the more effective it is and the more able it is to withstand and buy out competition (think of the respective dominance and scope for rent-seeking profits of Google, Facebook, Amazon, Twitter and Kickstarter).

Without action technological change will reinforce already wide inequality. Compare this with the middle of the last century: the inventions of the first machine age – domestic electricity, motor cars and white goods – achieved ubiquity among Western consumers at a time when a much higher proportion of economic growth was recycled into the income of ordinary workers. Now – as Thomas Piketty eloquently argues – the proceeds of growth are being grabbed and hoarded by the already wealthy.

So, whilst Adam is right that we should reform education and pursue other policies to prepare our populations for the challenges and opportunities of the second machine age, these challenges will be much harder, and opportunities much fewer, unless Governments (working at home and internationally) can develop the legitimacy, confidence and know-how to ensure the benefits of the next technological revolution are fairly and wisely distributed.

Which reminds me of another of Adam’s blogs, this one on Moses Naim’s analysis of the decline of big power, particularly that of the state. The American sociologist Daniel Bell once argued that in the modern world the nation state would come to be seen as ‘too big for the small things in life and too small for the big things’. I have tended to think of this as being about the spatial dimension of governance; the need for greater devolution to localities, on the one hand, and greater international collaboration, on the other, but it is more deeply a point about power.

I have repeatedly argued that central Government and its traditional policy tools are becoming ever more blunt and dysfunctional when it comes to social policy. Yet we desperately need the unique democratic authority of Government to tackle some of the biggest problems we face; on climate, inequality, infrastructure, regulating finance, and global security. When Piketty argues for a global wealth tax or McAfee and Brynjolfsson join the ranks of those who support a minimum income guarantee, it is not so much that people object to the proposals as that they have little faith in Government to be able to enact them successfully.

All of which leads to me to conclude that part of the RSA’s pursuit of what we call the ‘Power to Create’ (releasing the creativity inherent in all of us) must be about 21st century statecraft. Technology is the most powerful single force in the modern world but its impact depends to a large degree on the choices we have made and the choices we will make. Democracy is the way we make those choices at a collective level. Unless democracy works better in twenty-first century conditions then there is no guarantee that technological progress will beget human progress.

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Where is the future?

March 5, 2014 by · 1 Comment
Filed under: Politics, The RSA 

The daily manoeuvring we are already seeing ahead of next year’s General Election can seem rather pointless. What has really changed in the polls in the last two years? Aren’t we continuing to meander towards another hung Parliament with the only unanswered question – which is to be the biggest Party – being ultimately resolved by a few thousand votes in a short list of marginal seats? Probably: but more in hope than expectation I’ll offer a way for things to become more interesting.

General Elections tend to be fought on three primary terrains: values, competence and future. Arguments about record and specific policies matter less for themselves than the degree to which they symbolise and reinforce these themes.

Labour is ahead on values, its traditional strong point; the Party scores relatively well on measures such as ‘speaks up for ordinary people’. The Conservative response is a sometimes uneasy mixture of appeal to people’s grievances about immigrants and those on benefits plus a quieter insistence that the Party continues to care about social mobility and poverty. Labour has tried to neutralise the first set of issues by sounding tough on claimants and immigration while choosing issues such as the bedroom tax to assert a value choice between the two largest Parties.  The Lib Dems’ favoured position is to share Labour’s critique of ‘uncaring’ Conservatives but also to claim to be free of the less popular baggage of the labour movement.

The Conservatives are ahead on competence. They will be disappointed that the economic pick-up does not yet seem to have turned this advantage into a deal-clincher with the electorate.  Sooner or later the Tories will launch a huge attack on the ‘riskiness’ of a Miliband Government’.  They will be hoping this has an effect as powerful as the 1991/2 attack on Neil Kinnock (they may even be tempted to update the famous ‘L’ plate poster).

Labour has being trying to improve its competence rating. Thus there have been pledges on spending and borrowing and steps to improve the quality of Labour’s front bench. One of the reasons Nick Clegg entered Government was to establish the Lib Dems as a serious Party of Government. So far this hasn’t worked out well in terms of popularity but I suspect Clegg and his team will be in a stronger position come election time, albeit having to deal with insistent questions about who their favoured post-election partner would be.

While on values or competence we are dealing with fairly predictable game plans, when it comes to ‘future’ we are still largely in the dark. The future pitch is not just, or even mainly, about promises or aspirations. To win ‘future’ a party has to predict tomorrow in a credible way which lodges the idea that only that party understands and is prepared for that future.

The lack of future narrative may partly betray the limited time horizons and ambitions of the parties but it is also a reflection of the tough period we have been living through. Until recently any attempt to mobilise a positive future vision would have been seen as irrelevant, complacent or both. But that is changing. ‘Future’ is now up for grabs, and unlike values and competence it is far from clear who will wrestle control.

Much though it interests me, it’s not my job as RSA CEO to speculate on political strategy or election outcomes. However, my analysis does offer an opportunity to wider civic society. Whilst there is little most of us can usefully do on values and competence other than reinforce various existing positions, when it comes to ‘future’ there is room for creativity, agenda-setting and new alliances.

To repeat, future is not just about aspirations. More interesting are scenarios; what do we think are the likely major trends that will shape the next ten years? And can we press the parties to start showing us they understand these trends, are prepared for them, and how they would seek to shape them? In short, which party seems to ‘get the future’ most convincingly.

For example, I have been writing quite a lot (here and here) about the trends making central Government less effective and blunting the tools of traditional policy making. Who has the best plan to deal with the decline of the centre? Population ageing is another key trend. We talk about the specifics of health and social care and universal benefits but what about the deeper demographic trend towards a society where there are many more older people, some more younger people and fewer in-between?  What kind of society will and should this be? As long as a different hollowing out – of the middle of the labour market – continues tinkering with minimum wages and tax credits it is not likely to make any significant difference. Is this something we simply live with or is any party willing credibly to commit to restructure the labour market?

The widespread assumption a few decades ago that globalisation would lead to a homogenisation of domestic economic and social policy has been largely confounded. There are significant differences between countries and different routes to success and to ruin.

Let’s hope that, amidst the attacks and retail policy offers, the next few months also sees the emergence of something that resembles a debate about alternative strategies for Britain (assuming, that is, there still is a Britain). Even better would be if this was a debate (unlike 99% of party politics) where the parties might in some areas agree to differ and let voters make an informed choice from the futures on offer. If the RSA could play a part in hosting such a debate I’m sure we’d be up for it.

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