Death of Democracy
An Inevitable Possibility under Capitalism
Rajan Gurukkal (rgurukkal@gmail.com) is a historian
and social scientist, and is vice chairman of the Kerala State Higher
Education Council.
What happens to democracy when capitalism becomes global?
Capitalist expansion and democratisation are popularly represented by the
magical term “development.” However, the unbridled development
of capitalism is invariably based on the over-exploitation of natural resources, and the consequent impoverishment of tribal people, expansion of the middle class and transformation of the nation into a crony capitalist state. The latest phase of capitalism, namely techno-capitalism—with its corporate system of organisation and highly centralised top-heavy administration, or “corporatocracy”—signifies the measured death of democracy.
of capitalism is invariably based on the over-exploitation of natural resources, and the consequent impoverishment of tribal people, expansion of the middle class and transformation of the nation into a crony capitalist state. The latest phase of capitalism, namely techno-capitalism—with its corporate system of organisation and highly centralised top-heavy administration, or “corporatocracy”—signifies the measured death of democracy.
Democracy has always
been considered a goal which is a long way off, ever since the onset of
differentiated economy and stratified society. Throughout history, we
tookoligarchy for democracy and always believed that bourgeois democracy could
be transformed into real democracy through constitutional reforms. One liberal
political scientist even contemplated the globalisation of Western liberal
democracy and the subsequent “end of history”1 as
imminent (Fukuyama 1992). Expectedly, a total rebuttal of the end of
history thesis came, with reference to the reawakening of history under the
revolutionary force of the people (Badiou 2012). Hope for a people’s resurgence
in the form of survival struggles does make sense, and it may be reasonable to
dream of the European lower middle class resuscitating their revolutionary democratic values and passions of 1789 or 1848. However, few expect the North American elites to endorse a renewed call for liberty and equality, as in 1776.
dream of the European lower middle class resuscitating their revolutionary democratic values and passions of 1789 or 1848. However, few expect the North American elites to endorse a renewed call for liberty and equality, as in 1776.
Capitalism and
Democracy
Capitalism denotes
the means, forces and relations of production, facilitating transformation of
money into capital, through industrial production and profit-maximising
exchange. Capitalist development means the enhanced accumulation of capital
(Marx 1867). Its juridico–political devices were manifested in the post-feudal
polities of constitutional monarchy and patriarchy. Colonisation of the new
world was an early landmark of capitalist development. It was after the
American war of independence in 1776 and the birth of the United States (US),
that thepatriarchal juridico–political system was transformed into bourgeois
democracy. Since then, capitalist development has depended upon the democratic
state, run by the bourgeoisie. The rise of a new Europe following the French
Revolution of 1789 tended to democratise beyond the middle class, but the
middle-class alliance with the bourgeoisie sabotaged this process, substituting
it with an absolutist state under Napoleon Bonaparte. Capitalism developed
through competitive colonisation, often turning state power into imperialism,
by waging wars globally.Anti-colonial struggles and the constitution of liberal
democratic nation states as well as dictatorships emerged in Asia, where
capitalism developed in alliance with both.
Nevertheless,
capitalists were constrained to fight dictatorships for economic reasons, while
they tried to retain bourgeois democracy, also called liberal
democracy—guaranteeing in its rhetoric, the freedom of the press and speech,
and the right of habeas corpus—for ensuring a laissez-faire state.
Both,people’s democracy and the free market, are part of the rhetoric of
capitalism, for its inexorably hidden “real” has never been anything short of
oligarchy and monopoly. Capitalistsinstigated anti-communist bourgeois
democratic struggles, promoted liberal democratic states, and put up a
sustainedresistance against communism. However, communist revolutions gave
birth to socialist dictatorships in Russia first, and subsequently, in China,
where capitalism was yet to develop. In due course, capitalism developed even
in communist countries by transforming socialism into state capitalism. In
spite of the contrasts between state capitalism and transnational capitalism,
capitalism has continued its inevitable development into global capitalism.
Under it, perhaps the only relatively appreciable democratic state since the
world wars might be the Nordic model in the Scandinavian countries. However,
their social democracy based on privatised Keynesianism has proven
unsustainable, demanding enhanced collectiveresponsibility (Crouch 2009; Castells et al 2017).2
unsustainable, demanding enhanced collectiveresponsibility (Crouch 2009; Castells et al 2017).2
The fate of democracy
under capitalist development has never been a topic of serious debate, despite
the fact that Karl Marx’s theory of capitalism, as applied by Vladimir Ilich
Lenin (1999) to state power, had brought about the thesis of imperialism as the
highest stage of capitalism.3Rosa Luxemburg found imperialism to be a
theoretical inevitability in the process of development of the capitalist mode
of production, through global-level capital export and extension of
accumulation under monopoly capital (Luxemburg 1913; Wolfe 2001). Under
capitalism, the life of democracy is positioned as “being-toward-death,” in
reference to what Martin Heidegger said about human death: an inevitable and
imminent possibility, which everybody ignores.
Development Rhetoric
According to Marx’s
theory, development means capitalistdevelopment. However, in popular parlance
the term “development” is taken to mean all that people aspire for themselves.
Its usage cleverly and successfully conceals its real meaning: capitalist
growth with underlying implications of “colonialism” and “imperialism.” Another
related popular term, “globalisation,” similarly hushes up its actual meaning
of capitalistglobalisation, which implies “neo-colonialism” and “neo-imperialism.”
Despite the recurrence of recessions, capitalismexpanded through fresh strategies
of accumulation, which were able to acquire social legitimacy under the
ideological veil of “development.” Development is, therefore, a mischievous
term, but one of universal acclaim for something ideal. It means the expansion
of capital-, technology-,energy-, and chemical-intensive industrialproduction
for globalconsumption, in order to achieve maximisation of profit, high rates
of capital accumulation, a current account balance of payment surplus, the
lowest capital–output ratio, and the highest per capita consumption rate; are
allattributes ofdevelopment (Ruccio 2011). Almost all nations in thenorthern
hemisphere are distinguished with these attributes. They jointly constitute the
capitalist economic structure thatsubsumes and dominates the economic relations
andfunctions of the world.
Broadly speaking,
theories of development can be divided into two mutually antagonistic
categories, the liberal and the radical. Liberal theories of development are
based on thenotions of neo-classical economics, while radical theories are
based on the critical political economy and development anthropology. Theories
under the first category constitute the core of modern economics, which
provides capitalism with its foundational knowledge, allowing for the articulation
of neocolonial, neo-liberal and neo-imperialist ideas within the “sugar-coated”
rhetoric of development. Some of these are indeed liberal theories—based on
pragmatic criticism and upholding democratic values and social ethics—but which
function largely as eddies in the capitalist current. Radical theories of
development are founded on Marxist epistemology, but with varying levels of
praxis intervention, ranging from armed revolution (Marxist–Leninist) and
social–democratic collective operation (neo-Marxist), to civil society
reformist initiatives. Of all the theories of development justifying the
capitalist agenda,Walt Whitman Rostow’s (1960) formulation ranks the foremost.
It conceives development in terms of five stages, and accordingly classifies
economies as traditional, underdeveloped, developing, developed, or
post-industrial. It wasRostow’s work that popularised the term development.
Theoretical
Engagements
Several scholars have
highlighted the cultural strategies of capitalist expansion, camouflaging
imperialist ways of capitalist exploitation and legitimising unequal power
relations (Adorno 1991). There is an impressive body of literature by
neo-Marxists like Louis Althusser, Etienne Balibar, Fernand Braudel, André
Gunder Frank, Immanuel Wallerstein, Walter Rodney, Samir Amin and others,
analysing relations of diplomacy, trade agreements, development treaties and
technology transfers, which expose the presence of imperialist state power
behind the so-called democratic governance of capitalist countries. Their
reinterpretations of hardcore Marxist political economy have brought to bear
the incompatibility between democracy and capitalism, by demonstrating how
capitalist states created and sustained the underdeveloped world (Wallerstein
1976; Frank 1971, 1979; Rodney 1983; Amin 1990, 1997). Neo-Marxists or
post-Marxists like Ernesto Laclau, Chantal Mouffe,Slavoj Žižek, Antonio Negri,
Michael Hardt, Jean-Luc Nancy, Partha Chatterjee and others, discuss the sad
plight of postcolonial democracy against the background of the rising global
capitalist neo-imperialism. Their studies provide insights into the politics of
caste and ethnicity in postcolonial democracies with crony states, which are at
odds with the nation state as well as capitalist development.4 To Partha
Chatterjee (1993; 2011), the politics of ethnicity in India, although
apparently an essentialist entity, is not a contrast to national democracy.
Neo-marxist theoreticians do not believe that democraticnationalist
essentialism is opposed to democratic ethnic essentialism, because the
essentialism of both is susceptible to slip into authoritarianism and
subsequently, fascism (a natural manifestation in advanced capitalist
development). This isevident in India where caste and ethnic politics, althoughostensibly
championing the subaltern causes, are susceptible to be trapped by the dominant
communal essentialism.
Antonio Negri and
Hardt (2000) argue that imperialism under advanced capitalism is not
manifesting within the nation state as one would expect. Global capitalism has
been fast bypassing and undermining the state system. A new global
imperialism—run by international institutions like the International Monetary
Fund (IMF), World Bank, and the World TradeOrganization (WTO)—has already
outdated state-driven imperialism. Ever since the open withdrawal of the state
from most sectors of people’s welfare, there has been a steady intensification
of privatisation of public assets, impairing nationaleconomic sovereignty. What
some heads of state in the grown-up capitalist countries exhibit is not
national imperialism per se, but a mere reflection of the capitalist global
power.
Development
Anthropology
Development
anthropology, an offshoot of neo-Marxist theory of capitalist development,
focuses primarily on the micro-level processes under the influence of
postmodern and post-structural perspectives. They owe their pattern of thinking
to Michel Foucault (1972) and Jean-François Lyotard (1979). It isFoucault’s
discourse analysis—which helps understand how a text of the power–knowledge
combine works on its subjects—upon which development anthropologists have
depended for their interpretations. According to Foucault, a discourse
transforms people into its subjects and acts as the de facto influence on their
minds and bodies. Postmodern anthropologists perceive capitalist development as
a discourse that fundamentally transforms the mindset of people, and makes them
subjects, uncritically accepting the meanings, measures and truth claims
rendered plausible by the “development discourse.”
Development
anthropologists like James Ferguson andArturo Escobar have criticised the
neoclassical and neo-liberal perception of development as an extension of
Rostow’s theory (Ferguson 1990, 2006; Escobar 1984, 2011). Applying Foucault’s
concept, they conceive development as an epochal discourse that has transformed
most people into its subjects through production and dissemination of necessary
knowledge, that is, new meanings, ideas, relations and processes of development
as truth. This construction of knowledge, technically calledobjectification,
results in the creation of the appropriate mentality for accepting new truths
about the subjects themselves. Accordingly, nations with discursively
engendered development subjects, uncritically accept their status exactly as
construed by the development discourse. Since World War II, the criteria of the
development discourse, which included several extra-economic factors like food
habits, architecture of dwellings, costumes and other cultural practices made
them uncritically accept their status as poor countries (Rahnema 1988; Maxwell
2003). As a result, many consider themselves underdeveloped, and hence at the
mercy of the developed countries for evolving strategies of development. These
countries, after signing various treaties and agreements with developed
countries, have been awaiting development. A variety of
neocolonial/neo-imperialistic strategies in the form of development treaties
for technology transfer, financial support, soft loans and big debts for
industrial growth and export maximisation, have trapped the underdeveloped and
developing nations.
A recent estimate of
Global Financial Integrity (GFI) and the Centre for Applied Research at the
Norwegian School of Economics (2015) shows that the net drain from the global
South since 1980 adds up to $16.3 trillion. In fact, of this net outflow, since
1980, developing countries have transferred $4.2 trillion to the developed
countries by way of interest payments on debt (Hickel 2017; World Bank and
International Debt Statistics nd). This has been the consequence of the high
debt service trap, systematically made more inescapable by the developed
countries using strategies of trade reforms, technological sophistication, free
imports, reduction of import tariffs, privatisation, free capital flow, full
convertibility of national currency and so on, all encouraged as “solutions” to
the crisis in the underdeveloped world.
Underdeveloped and
developing nations are in debt traps, and the myriad pressures that the
market-friendly cultureexerts often leads to increasing suicide rates. Over
five lakh farmers are reported to have committed suicide during the five years
of liberalisation and structural adjustment since 1995 (Shiva and Jalees 2009).
There is a commendable body of literature on suicide mortality illustrating the
plight of indebted farmers and weavers of India in the wake of the
unpredictable market conditions. Articles published in this journal itself are
many. Financial globalisation—that facilitated the flight of American and
European capital to developing countries through the liberalisation of the
capital market—has led to a series of effects such as privatisation, free
trade, foreign investment growth, hegemony of global organisations, mounting
debt,intensifying competition, strengthening of new market pressures,
heightening of political, cultural, social and economic insecurity, etc. Also,
the often sudden and arbitrary withdrawal of foreign capital investment pushes
the host nation into trouble. Decline of the public sphere is another
consequentdisaster (Habermas 1989).
It is now being
increasingly recognised that development, as demonstrated by the capitalist
economy, will never be universalised, because of the growing theoretical awareness
of its exploitative relationship of imbalance, which has been inevitably
structured by the dominance of the developed countries. Countries subject to
this exploitation are slowly coming to terms with the reality that their “development”
through transnational capital aids and technology transfer was mere myth and
propaganda (Rahnema 1988).
Hardly a scheme for
developing the underdeveloped, it was rather a strategy for sustaining the
development of the developed through a variety of methods, enabling the
transformation of national economies into structures of freewheeling
capitalism. Nevertheless, many liberalists still believe in Kuznets’ curve and
hope for the process of “trickle down” to set in soon (Kuznets 1955; Piketty
2014). They continue to view population growth, inequality, urbanisation,
agricultural transformation, education, health, unemployment, etc, in their own
merits, and not merely as appendages to an underlying growth model. Development
anthropologists preferred to go further by focusing on the marginalised as
victims of development. They seek to discuss how the discourse works in
everyday development situations and orders social relationships within
marginalised local communities (Grillo and Stirrat 1997).
With the growing
indifference of the state to problems of drinking water, food, healthcare,
education, and public distribution, people have been forced to become market
dependent. Corporate capital entered unbridled, into areas of naturalresources
and ecosystems of biodiversity, causing dispossession of local people’s age-old
subsistence strategies, disruption of culture and local wisdom, and devastation
of habitat(Hobsbawm 2007). With agricultural seeds now being made into a
patented commodity, farmers are unable to exchange them anymore, while
expensive fertilisers have made agriculture costly. Unpredictable markets on
occasions of good harvest and frequent crop failures due to unsuitable climatic
conditions have made the life of farmers extremely miserable. Farmers’ suicide
mortality is too stale a topic of analysis for socialscientists to be
inquisitive about, and an issue least topical for politicians to be perturbed.
Inequality has become unprecedentedly glaring with the proliferation of
billionaires on one side and the phenomenal rise of the impoverished on the
other (Piketty 2014). Billionaires come up not only through the software
industry, but also through trade in drinking water, a commodity of high-profit
trade for corporate houses. Many are deprived of access to drinking water,
which has become acontested natural resource almost everywhere. The loss
ofnational aid towards food and fuel has made the life of the poor incredibly
miserable and they are increasingly being pushed into a struggle for survival.
Nevertheless, the
process of capital growth at the cost ofequity is heading for a cul-de-sac.
These warnings of the limits to capital growth are by way of ecological
non-sustainability, environmental degradation, inescapable entropy and the
inevitable collapse of the capitalist system (Rifkin and Howard 1980; Meadows
et al 1972; 1993, 2004).
Limits to Growth
Development involving
the squandering of natural resources denotes a process of economic domination,
which deprives common people of their means of subsistence. Its technology has
acquired free access to natural resources, initiating their over-exploitation
at an unprecedented intensity. It is a process of shifting control over natural
resources from the local power structure to the supralocal, national and
international.Nationalisation of natural resources has divested the local
community of its livelihood rights over them, and similarlyinternationalisation
divests the nation of its sovereign control. World Bank projects of
eco-restoration are examples of thisdivestment. Through their funding for
securing the livelihoods of forest dwellers, they often deprive the people of
their livelihood rights. International financial control of natural resources
in the name of biodiversity conservation, ecosystem management or wildlife preservation
has implications of deprivation of sovereign power of the nation over its
natural wealth. To work for an alternative domain of thinking, which is capable
of critiquing and replacing modern development economics, is a decolonising
project. Sustainable development discussed widely is not altogether different
from the dominant development, for it has not led any developed country to
bring down its gross domestic product (GDP). Hence the elements of alternative
development are being articulated through a countercultural movement and
survival struggles led by the marginalised millions..
This disastrous
expansion, covered by the veil of “development”—an enchanting word with wide
social consensus—often involves deforestation, denial of forest rights, destruction
of habitats, deprivation of livelihood, disruption of culture, contamination of
the drinking water sources, acquisition ofrural farm lands, etc. Naturally, the
tribal people and poor peasants facing such acute crises have no alternative
other than launching unending struggles for survival. Survival is the central
objective across the plurality of these struggles that manifest in multiple
forms ranging from organised militancy of the Marxist–Leninist revolutionaries,
struggles led by environmental activists, joint movements for people’s rights,
and spontaneous protest outbreaks by the victims of development. Indeed, the
unprompted mass survival struggles generallyacquire the solidarity of the
larger society thanks to the advocacy by middle class intellectuals as well as
those politiciansrepresenting social concerns.
Development
Decentralisation
Several countries in
Asia and sub-Saharan Africa introduced decentralisation through constitutional
reforms under the World Bank agenda of local-level development. Indian states
were encouraged to carry out decentralisation for development through local
self-governance. The social misconception of the word development led many
people to misunderstand theactual meaning of decentralisation. They took it to
meandemocratisation at the grass roots, without knowing that grass-roots
democracy is hardly attainable through constitutionally-ordained reforms, which
seek only to quicken development administration.
What could, at best,
be feasible through constitutionalreforms is administrative decentralisation,
without upsetting the local social power relations as exemplified by the
People’s Plan initiatives (Isaac 2001; Tharakan and Rawal 2001).
Constitutionally engendered decentralisation is not democratisation, for it
hardly means anything more than a localisation of class governance, based on
the status quo. It is well known that democratisation brings about no social
change in the structural sense, so long as it affects no institutional
development in local administration that would upset the local power structure
(Esman and Uphoff 1984). The state of affairs in several countries shows that
the development of institutions—which combine the public, private and membership
sector—aiming towards the empowerment of the local poor through better access
to power and resources, is at a low ebb. Actually,democratisation should lead
to the development of local institutions and organisations, limiting and
controlling state actions and private forces (Gran 1983). However, their
structural transformative role will be minimal, unless alternative civil
organisations and institutions emanate from the grass roots.
In India,
democratisation has been occurring through state-induced administrative reform.
It is no accident, therefore, that there is no indication of institutional
development at the grass roots to ensure better access of the weaker sections
tolocal resources and power. The existing level, extent and basis of participation
relates to the ongoing national democratic system and its pro-middle class
incentives as determined by the power relations of the local society, which are
rooted in the dominant class–caste–community–religion nexus. In fact, this
precludes institutional development with enough potential to liberate the
locality from exploitative macrostructures ofbureaucracy and capitalist
markets. It is inevitable to search for political ways and means to transcend
this theoretical stalemate. Only praxis strategies of politicisation and
empowerment of the marginalised, facilitating people’s struggle against
structural contradictions in local power relations, would lead to grass-roots
democracy (Gurukkal 2001).
Various factors
impede the politicisation and empowerment of the marginalised and the poor.
Deprived of critical thought, they remain largely apolitical and susceptible to
ideological coercion by the dominant. Caught up in culturally contingent
identity traps of ethnicity, caste and religion, many of them are least amenable
to politicisation. Therefore, in reality, it is centralised governance
structured by the dominance of the upper class, that we call democracy today.
The dominated and exploited poor are unaware of the contrast between the
reigning democracy and grass-roots democracy. Theoretically, the state
machinery (even the truly leftist), being ultimately an upper-class instrument,
can hardly empower the downtrodden. Presuming otherwise, is as good as
expecting the state to participate in the class war of the poor. Yet, many
people still believe that liberal democracy can resolve the problem of class
contradiction through legislation.
Crony Capitalist
States
Today’s nation states
the world over, are largely undemocratic, of course, to varying degrees, while
not altogether totalitarian in each case. They are made up of several orders
orhierarchies around uneven economies, but are almost entirely structured by
the dominance of relations and functions under capitalism, irrespective of the
distance between the region and the metropolis (Resnick and Wolff 1981;
McDermott 1991). More or less relieved from pre-capitalist socialencumbrances
and placed at the mercy of the market with the freedom to buy and sell, the
people are now integrated into the hierarchies of bureaucracy attached to
state,semi-state and private enterprise. Every enterprise is bureaucratic and
hierarchical. This is the unilinear global structure that recurs in any nation
state, although with numerousculturallycontingent specificities. With its
various organs representing diverse groups, relations and interests insociety,
the state seemingly plays the central role of overall coordination, but in
effect, only as desired by the middle class, whichconstitutes the government,
and as determined bycapitalists, whomaintain ultimate control (Vincent 1987:
34–39;Green 1988: 62–68).
Ever since the open
withdrawal of the state from most sectors of people’s welfare, there has been a
steady intensification of the privatisation of public assets. This process has
been pushing developing nations like India into a solvency crisis, where public
sector disinvestment is forging ahead under the pretext of reform, transferring
national resources into the hands of a minority. Integrated to the process of
decentralisation, local public assets are being privatised in alignment with
the national policy. Further, all kinds of anti-social concepts such as “outsourcing,”
“downsizing the public sector,” “multiple stakeholders approach,” non-governmental
organisations, voluntary agencies, etc, have become sophisticated expressions,
exciting no repulsion in the minds of the general public. In countries like
India where capitalism grows unbridled, the national political power, although
democratically engendered, remains ultimately only a tool in the hands of
corporate houses. A crony capitalist state, it allows corporate houses to loot
the public and the state revenue by contracting services, for“better
efficiency.”
“Development,” the
most misleading term, has conditioned us to accept any “anti-people” scheme as
natural and inevitable. It is now not even necessary for the state to hide its
instrumental role in the conversion of people’s common property into private
assets. Today, the state is openly an agency determined to subsidise capitalism
by all means and facilitate its expansion, even at the cost of the livelihoods
of the poor (Gurukkal 2012). In the process, state power is itself privatised
in the form of the sale of public credits or bidding for the job of recovering
government loans, or even tasks of crime investigation. For instance, there are
private agencies working as assets reconstruction companies and crime
investigation groups in India, to which the state outsources its monopolistic
functions of recovering loans and investigating crime. This amounts to
privatisation of certain executive and juridical powers of the state.5 Common
justifications of the state measures for privatisation of its functions are the
lack of concern of the beneficiary public, irresponsibility of public servants,
incapability of public sector institutions, bureaucratic inefficiency, bribery
and other forms of corruption. All this allows the capitalist minority to loot
public revenue in connivance with the state, under the pretext of one
development reform or the other. This phase is called crony capitalism, for
which there are many instances in India.
The establishment of
special economic zones (SEZs) is the most widespread instance of crony
capitalism behind the veil ofnational economic development measures. SEZs are a
majorinstitutional intervention which subsidise capitalism, and which involve a
very heavy loss of national revenue. Various other illegal methods of parting
with huge shares of public wealth in favour of monopoly capitalists compound
crony capitalism. Despite heavy revenue losses, they enjoy a private space of
sovereign control too, a paradox of sovereign power within sovereignty. SEZs
thus embody crony capitalism of the worst kind. Another instance is the
outsourcing of bank loan recovery to asset reconstruction companies (ARCs). All
revenue related transactions within the crony capitalist state are executed at
the apex level in secrecy and whatever matter thereof is made public, is
invariably couched in the catchy rhetoric of development. In this manner
fascism penetrates into bourgeois democracy, by constraining bureaucrats of the
crony state, to practise functional autocracy at the expense ofdemocratic
procedures.
Latest Phase of
Capitalism
The latest phase of
capitalism, academically termed technocapitalism and popularly known as the “knowledge
economy,” depends on the commoditisation of technology and science as the main
source of capital accumulation. It has been presented as a new version of
capitalism (Feenberg 1991; Perelman 2004; Suarez-Villa 2009, 2012).6 The production
and exchange of new knowledge as the most high-valuecommodity is its main
industry. In the process, the new knowledge is alienated from its actual
producers, as in the case of any other commodity. Their creativity or innovativeness
is commoditised and turned into patents and intellectual property rights
(IPRs), which constitute the industry’s precious intangible asset.
Profit-maximising transactions of patents and IPRs have made marketable
knowledge both a commodity and capital today. It has given rise to a new type
of “commodity fetishism” centred on knowledge, as an extension of what Marx
originally theorised long ago (Marx 1867).7 Science is constrained to
technology, as it is essential for the production of innovative knowledge,
capable of securingpatents and IPRs of enormous profit potential in the field
of exchange. Today, the huge transactional value that innovative knowledge and
related properties generates is almost four-fifth of the total global returns
(Suarez-Villa 2012).
Techno-capitalist
enterprises are organised into the corporate model, a new form of organisation
of the most sophisticated techno-militaristic set-up of monopolistic control
over the market (McDermott 1991; Suarez-Villa 2012). With an aim towards the
production of innovative knowledge, corporate houses have built huge research
establishments the world over, in multiple science–technology hybrid fields of
knowledge.8 In these fields, thousands of young experts in theoretical
research and micro-engineering are employed by corporate research
establishments (Suarez-Villa 2012), whichfunction as powerful techno-military
complexes of electronic sophistication. Globally, they have adopted adequate
juridical measures for appropriating the creativity of the brilliant minds at
their disposal, enhancing the brain-drain in such countries (Suarez-Villa
2012).
There is no democracy
in the structure and function of the techno-capitalist enterprises. Forming
corporate houses, they have evolved a new form of techno-military industrial
organisation based on principles of oligarchy and monopoly. Corporate
techno-military imperialism uproots democracy through a variety of
sophisticated ways. For instance, by paving the way for the rise of
billionaires through the software trade, or through the provision of
unbelievably high salaries for experts in certain fields, a group of highly
paid transnational bureaucrats—the principal actors in the system—have
penetrated into theextant democratic state systems all over the world. They
reconstitute the state into a corporatocracy, a government of, for and by
corporations, a new type of governance that enmeshes and destroys democracy.
Attempts at
Legislating Autocracy
The impairment of
democracy, an inevitable consequence of capitalist development, has been
progressing in India for the last two decades, and is slowly turning the
democratic state into a functional autocracy under corporatocracy. Corporate
houses create state power, which efficiently mobilises people’s consent for functional
autocracy. This process is made easier by uncritical masses, moved by
sentiments of divisiveness, rooted in caste and communalism, which degenerate
nationalism into false consciousness. A crony capitalist state, with its
economic sovereignty highly impaired, will automatically seek to counterbalance
itself with overtly self-aggrandising political sovereignty. Systematic and
steady attempts at passinglegislations against democracy have been taking place
in the country since the 1990s (Gurukkal 2017). Legislative measures of
liberalisation, structural adjustments, public sector disinvestment and
commercialisation of services under the pressure of the IMF, World Bank and WTO
following the nation’s signing of the General Agreement on Trade and Tariff (GATT),
are examples. The process acquired an added aggressiveness in the service
sector after the nation’s surrender to the WTO by signing the General Agreement
on Trade in Services (GATS) on 1 January 1995.
In education, health
and environment, the state, underjuridical obligation began to be enthusiastic
about legislating anti-democratic ideas, institutions and practices. GATS
required India to adopt legislative reforms, apparently for the country to gain
from trade in services, but actually, to benefit thedeveloped world.
Accordingly, several reform bills, as part of neo-liberal initiatives for “improving”
the country’s highereducation sector, have been proposed, and the Private
Universities(Establishment and Regulation) Act, 1995 was the first to get
legislated among them. The Foreign Education Institutions (Regulation of Entry
and Operations) Bill, 2010, Prevention of Malpractices Bill and the
Educational Tribunals Bill, 2010,National Accreditation Regulatory Authority
for HigherEducation Institutions Bill, 2010, and Higher Education andResearch
(HE&R) Bill, 2011 are other examples. All these bills have been pending
legislation due to controversies over their constitutional validity.
Another example of an
attempt to legislate centralisation in the higher education sector was the move
to replace theUniversity Grants Commission (UGC) along with other national
regulatory councils with a single authority. It was the National Knowledge
Commission that recommended a special legislation for establishing an Independent
Regulatory Authority for Higher Education (IRAHE) to set standards and
determineeligibility criteria for new institutions. Thus, the
NationalCommission for Higher Education and Research (NCHER) Bill, 2011
subsuming all democratic regulatory bodies in highereducation—the UGC, the All
India Council for TechnicalEducation (AICTE), the National Council for Teacher
Education (NCTE) and the Distance Education Council (DEC)—took shape. Due to
nationwide opposition of its undemocraticnature, the government withdrew the
bill on 24 September 2014. Ever since the withdrawal of the bill, there have
beenefforts to reintroduce the bill for a national authority of higher
education. The latest incarnation is the draft legislation for the Higher
Education Commission of India (HECI), prepared as advised by NITI Aayog. The
commission will be the solenational authority in the place of the existing
democratic regulators such as the UGC and otherstatutory councils.
With a view to
enabling hassle-free acquisition of land for the Make in India project,
amendments to the Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013 were proposed in favour
of the corporate houses. A de facto solution was sought by appointing a high
power committee on environment in 2014. The bureaucratic committee,innocent of
ecology and environmental sciences, proposedvirtual nullification of all
foundational acts of social and environmental justice viz, Indian Forest Act,
1927; Indian Wildlife (Protection) Act, 1972; Water (Prevention and Control of
Pollution) Act, 1974; Forest (Conservation) Act, 1980; Air (Prevention and
Control of Pollution) Act, 1981; and Environment (Protection) Act, 1986
(Subramanian 2014). It alsorecommended the constitution of two
bureaucratic bodies for environmental management—the National Environment
ManagementAuthority (NEMA) and State EnvironmentManagement Authority
(SEMA)—sidelining departments of academic expertise. Fortunately, both the
houses of Parliament prevented the legislation of this anti-democratic
document. However, through the Ecologically Sensitive Areas (ESA) Notification
(Reference no 400/WG/2015) on 4 September 2015, thegovernment initiated steps
to realise the avowed purpose through a series of amendments to the various
acts concerned. This too, has been stalled due to wide public criticism. These
are well-known examples of the state’s repeated attempts at legislating
autocracy and there could be several others that have not been made public yet.
Conclusions
Marxist theoretical
perspectives of capitalist developmentinform that imperialism is the
juridico-political outcome ofadvanced capitalism. As capitalism acquires higher
dimensions of development, democracy becomes increasinglyimplausible. It is the
political economy of capitalist development, and not the idiosyncrasies of
individual politicalleaders, that turn the state towards fascism. It is
unlikely that the state—already crony capitalist in its structure and
function—faces ethical pressure to combine economic growth with social and
environmental justice. Whatever hope the magical word “development” sustains in
people’s minds, it essentially means capitalist expansion, through
over-exploitation of natural resources with the inevitable consequences of
marginalisation of tribal peoples, uncontrolled growth of inequalities,
transformation of the nation into a cronycapitalist state, and proliferation of
billionaires. Among crony capitalist enterprises, SEZs exemplify the most
undemocratic of all. They symbolise the capitalists’ de facto control over the
country’s economic sovereignty. Corporate houses try to restructure the
government by forcing it to be functionally autocratic through bureaucracy, and
bylegislating centralisation to substitute democratic procedures. All this puts
the state in perfectalignment with the growing global techno-militaristic
neo-imperialism andreaffirms the death ofdemocracy; an inevitable possibility
under capitalism