This assignment is a take-home essay assignment of 1 question, 3 full pages, to test knowledge and assimilation of the course objectives. Use required readings and outside scholarly sources as needed.

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Tit le :

A uth ors :

S ourc e:

D ocu m en t T y p e:

S ubje ct T e rm s:

N AIC S/In dustr y C odes:

A bstr a ct:

F ull T e xt W ord C ount:

IS SN :

Accessio n N um ber:

D ata b ase:

Record: 1

M akin g M odern it y W ork .

R ose , G id eon

F ore ig n A ff a ir s . J a n/F eb2012, V ol. 9 1 Is su e 1 , p 3-6 . 4 p.

A rtic le

* IN TE R NAT IO NAL r e la tio ns

*M ODER NIT Y

*C APIT A LIS M

911 410 F ore ig n a ff a ir s

9 28120 In te rn atio nal A ff a ir s

A n in tr o ductio n is p re se nte d in w hic h th e e dit o r d is cu sse s a rtic le s w it h in

t h e is su e o n to pic s in clu din g m odern it y in th e w orld o rd er, th e

re la tio nsh ip b etw een c a pit a lis m a nd d em ocra cy, a nd lib era lis m .

1635

0015-7 120

69880003

A ca dem ic S earc h P re m ie r

M akin g M odern it y W ork

The R eco ncilia tio n o f C ap it a lis m a n d D em ocra cy

W e a re liv in g, s o w e a re to ld , th ro ugh a n id eolo gic a l c ris is . T he U nit e d S ta te s is tr a pped in p olit ic a l d eadlo ck

a nd d ysfu nctio n, E uro pe is b ro ke a nd b re akin g, a uth orit a ria n C hin a is o n th e r is e . P ro te ste rs ta ke to th e s tr e ets

a cro ss th e a dva nce d in dustr ia l d em ocra cie s; th e h ig h a nd m ig hty m ee t in D avo s to s e arc h fo r " n ew m odels " a s

so ber c o m menta to rs p onder w ho a nd w hat w ill s h a pe th e fu tu re .

In h is to ric a l p ers p ectiv e , h ow eve r, th e tr u e n arra tiv e o f th e e ra is a ctu ally th e r e ve rs e --n ot id eolo gic a l u pheava l

but s ta bilit y . T o day's tr o uble s a re r e al e no ugh, b ut th ey r e la te m ore to p olic ie s th an to p rin cip le s. T he m ajo r

battle s a bout h ow to s tr u ctu re m odern p o lit ic s a nd e co n om ic s w ere fo ught in th e fir s t h alf o f th e la st c e ntu ry ,

a nd th ey e nded w it h th e e m erg ence o f th e m ost s u cce ssfu l s yste m th e w orld h as e ve r s e en.

N in e d eca des a go, in o ne o f th e fir s t is su es o f th is m ag azin e, th e p olit ic a l s cie ntis t H aro ld L aski n ote d th at w it h

" th e m ass o f m en" h avin g c o m e to p olit ic a l p ow er, th e c h a lle nge o f m od ern d em ocra tic g ove rn m ent w as

pro vid in g e nough " s o lid b enefit " to o rd in ary c it iz e n s " to m ake it s p re se rv a tio n a m atte r o f u rg ency to

t h em se lv e s." A g enera tio n a nd a h alf la te r, w it h th e c re atio n o f th e p ostw ar o rd er o f m utu ally s u pportin g lib era l

dem ocra cie s w it h m ix e d e co nom ie s, th at c h a lle nge w as b ein g m et, a nd a s a r e su lt , m ore p eople in m ore

p la ce s h ave liv e d lo nger, r ic h er, fr e er liv e s th an e ve r b efo re . In id eolo gic a l te rm s, a t le ast, a ll th e r e st is

c o m menta ry .

T o c o m mem ora te F ore ig n A ff a ir s 9 0th a nniv e rs a ry , w e h ave th us d ecid ed to ta ke r e aders o n a m agic a l h is to ry

to ur, tr a cin g th e e vo lu tio n o f th e m odern o rd er a s it p la ye d o ut in o ur p ages. W hat fo llo w s is n ot a " g re ate st

h it s " c o lle ctio n o f o ur m ost w ell- k n ow n o r in flu entia l a rtic le s, n or is it a s h o w ca se fo r th e m ost fa m ous n am es to

h ave a ppeare d in th e m agazin e. It is r a th e r a p acka ge o f 2 0 c a re fu lly c u lle d s e le ctio ns fr o m o ur a rc h iv e s, a lo ng

w it h th re e n ew p ie ce s, w hic h c o lle ctiv e ly s h e d lig ht o n w here th e m od ern w orld h as c o m e fr o m a nd w here it is

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TH E B IR TH O F T H E M ODER N

In th e p re m odern e ra , p olit ic a l, e co nom ic , a nd s o cia l lif e w as g ove rn ed b y a d ense w eb o f in te rlo ckin g

re la tio nsh ip s in herit e d fr o m th e p ast a nd s a n ctif ie d b y r e lig io n. L im it e d p ers o n al fr e edom a nd m ate ria l b enefit s

e xis te d a lo ngsid e a m ostly u nquestio ned s o cia l s o lid arit y . T ra dit io nal lo ca l o rd ers b egan to e ro de w it h th e r is e

o f c a pit a lis m in th e e ig hte enth a nd n in ete enth c e n tu rie s, a s th e in cre asin g p re va le nce a nd d om in ance o f

m ark e t r e la tio nsh ip s b ro ke d ow n e xis tin g h ie ra rc h ie s. T he s h if t p ro duce d e co n om ic a nd s o cia l d yn am is m , a n

in cre ase in m ate ria l b enefit s a nd p ers o na l fr e edom s, a nd a d ecre ase in c o m munal fe elin g. A s th is p ro ce ss

c o ntin ued, th e fir s t m odern p olit ic a l id eolo gy, c la ssic a l lib era lis m , e m erg ed to c e le bra te a nd ju stif y it .

L ib era lis m s tr e sse d th e im porta nce o f th e r u le o f la w , lim it e d g ove rn m en t, a nd fr e e c o m merc ia l tr a nsa ctio ns. It

h ig hlig hte d th e m anif o ld r e w ard s o f m ovin g to a w orld d om in ate d b y m ark e ts r a th er th an tr a dit io nal

co m munit ie s, a s h if t th e e co nom ic h is to ria n K arl P ola nyi w ould c a ll " th e g re at tr a nsfo rm atio n." B ut a lo ng w it h

t h e g ain s c a m e lo sse s a s w ell- -o f a s e nse o f p la ce , o f s o cia l a nd p sych o lo gic a l s ta bilit y , o f tr a dit io nal b ulw ark s

a gain st lif e 's v ic is sit u des.

L eft to it s e lf , c a pit a lis m p ro duce d lo ng-te rm a ggre gate b enefit s a lo ng w it h g re at v o la tilit y a nd in equalit y . T his

c o m bin atio n r e su lt e d in w hat P ola nyi c a lle d a " d o uble m ove m en t," a p ro gre ssiv e e xp ansio n o f b oth m ark e t

so cie ty a nd r e actio ns a gain st it . B y th e la te n in ete enth a nd e arly tw entie th c e n tu rie s, th ere fo re , lib era lis m w as

bein g c h alle nged b y r e actio nary n atio na lis m a nd c o sm opolit a n s o cia lis m , w it h b oth th e r ig ht a nd th e le ft

p ro m is in g, in th eir o w n w ays, r e lie f fr o m th e tu rm oil a nd a ngst o f m od ern lif e .

T he c a ta str o phic d estr u ctio n o f th e G re at W ar a nd th e e co n om ic n ig htm are o f th e G re at D epre ssio n b ro ught

th e c o ntr a dic tio ns o f m odern it y to a h ead , s e e m in gly r e ve a lin g th e b ankru ptc y o f th e lib era l o rd er a nd th e n eed

fo r s o m e o th er, b ette r p ath . A s d em ocra tic r e public s d it h ere d a nd s tu m ble d d urin g th e 1 920s a nd 1 930s,

fa scis t a nd c o m munis t r e gim es s e iz e d c o n tr o l o f th eir o w n d estin ie s a nd a ppeare d to o ff e r c o m pellin g

alt e rn ativ e m odels o f m odern p olit ic a l, e co n om ic , a nd s o cia l o rg aniz a tio n.

O ve r tim e, h ow eve r, th e p ro ble m s w it h a ll th ese a ppro ach e s b eca m e c le ar. H avin g d is ca rd ed lib era lis m 's

i n sis te nce O n p ers o nal a nd p olit ic a l fr e ed om , b oth fa scis m a nd c o m munis m q uic kly d esce nded in to o rg aniz e d

barb aris m . T he v is io n o f th e fu tu re th ey o ff e re d, a s G eorg e O rw ell n ote d, w as " a b oot s ta m pin g o n a h um an

fa ce --fo re ve r. " Y et c la ssic a l lib era lis m a ls o p ro ve d u npala ta ble , s in ce it c o n ta in ed n o r a tio nale fo r a ctiv is t

g ove rn m ent a nd th us h ad n o a nsw er to a n e co n om ic c ris is th at le ft v a st s w ath s o f s o cie ty d estit u te a nd

desp air in g.

F ascis m fla m ed o ut in a s e co nd, e ve n m ore d estr u ctiv e w orld w ar. C om munis m lo st it s a ppeal a s it s ty ra nnic a l

natu re r e ve ale d it s e lf , th en u lt im ate ly c o lla pse d u nder it s o w n w eig ht a s it s n onm ark e t e co nom ic s yste m c o uld

n ot g enera te s u sta in ed g ro w th . A nd lib era lis m 's c e n tr a l p rin cip le o f la is se z fa ir e w as a bandoned in th e d epth s

of th e D epre ssio n.

W hat e ve ntu ally e m erg ed v ic to rio us fr o m th e w re cka ge w as a h yb rid s yste m th at c o m bin ed p olit ic a l lib era lis m

w it h a m ix e d e co nom y. A s th e p olit ic a l s cie ntis t S heri B erm an h as o bse rv e d , " T he p ostw ar o rd er r e pre se nte d

so m eth in g h is to ric a lly u nusu al: c a pit a lis m r e m ain ed, b ut it w as c a p it a lis m o f a v e ry d if f e re nt ty p e fr o m th at

w hic h h ad e xis te d b efo re th e w ar-- o ne te m pe re d a nd lim it e d b y th e p ow er o f th e d em ocra tic s ta te a nd o fte n

m ade s u bse rv ie nt to th e g oals o f s o cia l s ta bilit y a nd s o lid arit y , r a th er th an th e o th er w ay a ro und." B erm an c a lls

t h e m ix tu re " s o cia l d em ocra cy." O th er s c h ola rs u se o th er te rm s: J a n -W ern er M ülle r p re fe rs " C hris tia n

D em ocra cy," J o hn R uggie s u ggests " e m bedded lib era lis m ," K arl D ie tr ic h B ra ch e r ta lk s o f " d em ocra tic 12/30/2018 EBSCOhost

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lib era lis m ." F ra ncis F uku ya m a w ro te o f " th e e nd o f H is to ry "; D anie l B ell a nd S eym our M artin L ip se t s a w it a s

"th e e nd o f id eolo gy." A ll r e fe r to e sse ntia lly th e s a m e th in g. A s B ell p ut it in 1 960:

Few serious minds believe any longer that one can set down

"blueprints" and through "social engineering" bring about

a new Utopia of social harmony. At the same time, the older

"counter-beliefs" have lost their intellectual force as well.

Few "classic" liberals insist that the State should play no

role in the economy, and few serious conservatives, at least

in England and on the Continent, believe that the Welfare

State is "the road to serfdom." In the Western world,

therefore, there is today a rough consensus among intellectuals

on political issues: the acceptance of a Welfare State; the

desirability of decentralized power; a system of mixed

economy and of political pluralism.

R efle ctin g th e h angove r o f th e in te r-w ar id eolo gic a l b in ge, th e s yste m s tr e sse d n ot tr a nsce ndence b ut

co m pro m is e . It o ff e re d n eit h er s a lv a tio n n or U to pia , o nly a fr a m ew ork w it h in w hic h c it iz e ns c o uld p urs u e th eir

p ers o nal b ette rm ent. It h as n eve r b een a s s a tis fy in g a s th e r e lig io ns, s a cre d o r s e cu la r, it r e pla ce d. A nd it

r e m ain s a w ork in p ro gre ss, r e quir in g tin ke rin g a nd m od if ic a tio n a s c o n dit io ns a nd a ttit u des c h ange. Y et it s

s u cce ss h as b een m anif e st- - a nd r e fle ctin g th at, it s b asic fr a m ew ork h as r e m ain ed r e m ark a bly in ta ct.

T H E O NCE A ND F U TU RE O RDER

The c e ntr a l q uestio n o f m odern it y h as b e en h ow to r e co n cile c a p it a lis m a nd m ass d em ocra cy, a nd s in ce th e

postw ar o rd er c a m e u p w it h a g ood a nsw er, it h as m an aged to w eath er a ll s u b se quent c h alle nges. T he

upheava ls o f th e la te 1 960s s e em ed p ois e d to d is ru pt it . B ut d esp it e w hat a ctiv is ts a t th e tim e th ought, th ey

had lit tle to o ff e r in te rm s o f p olit ic s o r e co nom ic s, a nd s o th eir la stin g im pa ct w as o n s o cia l lif e in ste ad. T his

h ad th e ir o nic e ff e ct o f s ta biliz in g th e s yste m r a th er th an o ve rtu rn in g it , h elp in g it liv e u p to it s fu ll p ote ntia l b y

brin gin g p re vio usly s u bord in ate d o r d is e n fr a nch is e d g ro ups in sid e th e c a stle w alls . T he n eolib era l

re vo lu tio narie s o f th e 1 980s a ls o h ad lit tle lu ck, n eve r m an agin g to tu rn th e c lo ck b ack a ll th at fa r.

A ll p ote ntia l a lt e rn ativ e s in th e d eve lo pin g w orld , m ea nw hile , h ave p ro ve d to b e e it h er d ead e nds o r te m pora ry

d eto urs fr o m th e b eate n p ath . T he m uch -b ally h o oed " ris e o f th e r e st" h as in vo lv e d n ot th e d is cre dit in g o f th e

postw ar o rd er o f W este rn p olit ic a l e co no m y b ut it s r e in fo rc e m en t: th e c o u ntr ie s th at h ave r is e n h ave d one s o

b y e m bra cin g g lo bal c a pit a lis m w hile k e epin g s o m e o f it s d esta biliz in g a ttr ib ute s in c h eck, a nd h ave lib era liz e d

th eir p olit ie s a nd s o cie tie s a lo ng th e w ay ( a nd w ill fo under u nle ss th ey c o n tin ue to d o s o ).

A lt h ough th e s tr u ctu re s till s ta nds, h ow eve r, it h as s e e n b ette r d ays. P oor m an agem ent o f p ublic s p endin g a nd

fis ca l p olic y h as r e su lt e d in u nsu sta in able le ve ls o f d ebt a cro ss th e a dva n ce d in dustr ia l w orld , e ve n a s m atu re

e co nom ie s h ave fo und it d if f ic u lt to g ene ra te d yn a m ic g ro w th a nd fu ll e m plo ym ent in a n e ve r m ore g lo baliz e d

envir o nm ent. L ax r e gula tio n a nd o ve rs ig ht a llo w ed r e ckle ss a nd p re dato ry fin ancia l p ra ctic e s to d riv e le adin g

eco nom ie s to th e b rin k o f c o lla pse . E co n om ic in equalit y h as in cre ase d a s s o cia l m obilit y h as d eclin ed. A nd a

lo ss o f b ro ad-b ase d s o cia l s o lid arit y o n b oth s id es o f th e A tla ntic h as e ro ded p ublic s u pport fo r th e a ctiv e

re m edie s n eeded to a ddre ss th ese a nd o th er p ro ble m s.

R enova tin g th e s tr u ctu re w ill b e a s lo w a nd d if f ic u lt p ro je ct, th e c o st a nd d ura tio n o f w hic h r e m ain u ncle ar, a s

do th e c o ntr a cto rs in vo lv e d. S till, a t r o ot, th is is n ot a n id eolo gic a l is su e. T he q uestio n is n ot w hat to d o b ut h ow

to d o it - -h ow , u nder tw enty -fir s t- c e ntu ry c o n dit io ns, to r is e to th e c h a lle nge L aski d escrib ed, m akin g th e m odern

p olit ic a l e co nom y p ro vid e e nough s o lid b e nefit to th e m ass o f m en th at th ey s e e it s c o ntin uatio n a s a m atte r o f

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The o ld a nd n ew a rtic le s th at fo llo w tr a ce th is s to ry fr o m th e to ta lit a ria n c h a lle nge o f th e in te rw ar y e ars , th ro ugh

th e c ris is o f lib era lis m a nd th e e m erg ence o f th e p ostw ar o rd er, to th at o rd er's p re se nt d if f ic u lt ie s a nd fu tu re

p ro sp ects . S om e o f o ur a uth ors a re d is tin ctly g lo om y, a nd o ne n eed o nly g la nce a t a n ew sp aper to s e e w hy.

B ut r e m em berin g th e fa r g re ate r o bsta cle s th at h ave b een o ve rc o m e in th e p ast, o ptim is m w ould s e em th e

bette r lo ng-te rm b et.

~~~~~~~~

B y G id eon R ose

G id eon R ose is E dit o r o f F ore ig n A ff a ir s .

T he c o nte nts o f F ore ig n A ff a ir s a re p ro te cte d b y c o p yrig ht. © 2 004 C ouncil o n F ore ig n R ela tio ns, In c., a ll r ig hts

r e se rv e d. T o r e quest p erm is sio n to r e pro du ce a ddit io nal c o p ie s o f th e a rtic le (s ) y o u w ill r e tr ie ve , p le ase c o nta ct

th e P erm is sio ns a nd L ic e nsin g o ff ic e o f F ore ig n A ff a ir s .