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Friday, October 30, 2009

"The Berlin Wall Had to Fall, But Today's World is No Fairer"

Mikhail Gorbachev says the crisis "was needed to reveal the organic defects of the present model of western development that was imposed on the rest of the world":

The Berlin wall had to fall, but today's world is no fairer, by Mikhail Gorbachev, Comment is Free: Twenty years have passed since the fall of the Berlin wall...
Alas, over the last few decades, the world has not become a fairer place: disparities between the rich and the poor either remained or increased, not only between the north and the developing south but also within developed countries themselves. The social problems in Russia, as in other post-communist countries, are proof that simply abandoning the flawed model of a centralized economy and bureaucratic planning is not enough, and guarantees neither a country's global competitiveness nor respect for the principles of social justice or a dignified standard of living for the population. ...
The real achievement we can celebrate is the fact that the 20th century marked the end of totalitarian ideologies, in particular those that were based on utopian beliefs.
Yet new ideologies are quickly replacing the old ones, both in the east and the west. Many now forget that the fall of the Berlin wall was not the cause of global changes but to a great extent the consequence of deep, popular reform movements that started in the east, and the Soviet Union in particular. After decades of the Bolshevik experiment and the realization that this had led Soviet society down a historical blind alley, a strong impulse for democratic reform evolved in the form of Soviet perestroika, which was also available to the countries of eastern Europe.
But it was soon very clear that western capitalism, too, deprived of its old adversary and imagining itself the undisputed victor and incarnation of global progress, is at risk of leading western society and the rest of the world down another historical blind alley.
Today's global economic crisis was needed to reveal the organic defects of the present model of western development that was imposed on the rest of the world as the only one possible; it also revealed that not only bureaucratic socialism but also ultra-liberal capitalism are in need of profound democratic reform – their own kind of perestroika.

Today, as we sit among the ruins of the old order, we can think of ourselves as active participants in the process of creating a new world. Many truths and postulates once considered indisputable, in both the east and the west, have ceased to be so, including the blind faith in the all-powerful market and, above all, its democratic nature. There was an ingrained belief that the western model of democracy could be spread mechanically to other societies with different historical experience and cultural traditions. In the present situation, even a concept like social progress, which seems to be shared by everyone, needs to be defined, and examined, more precisely.

I don't agree with everything he says (the full essay is much longer), but I think it is true that the market-based development models based upon strict ideological versions of the Washington consensus that were implemented in various places did not work out very well, and this undermined faith in these models. In addition, the economic crisis, along with the success China and other countries have had with different development models, has further undermined the faith that once existed in traditional market-based development strategies.

    Posted by on Friday, October 30, 2009 at 09:18 PM in Economics | Permalink  TrackBack (0)  Comments (100)

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