This is a post in our EU referendum forum. Click here for the introduction with links to all the contributions.
The choice facing Britain in the EU referendum is best understood, I suggest, using two concepts that I’ve used a lot in my work with Shahar Hameiri recently: ‘the politics of scale’, and state transformation. In a nutshell: the EU emerged through the rescaling of governance to inter-elite networks insulated – by design – from popular control, which lock in anti-democratic and conservative policies. Restoring popular control has to involve leaving the EU and revitalising national democracy in a progressive, internationalist direction.
In political geography, a ‘scale’ is a defined socio-political space, which is usually located within one or more hierarchies of related spaces. Examples can include tiers of established governance – boroughs, cities, provinces, nations, and regions, for example. They could be defined ethnically or religiously – a parish, the ummah – or even environmentally – habitats, bio-regions or the global environment. What’s fundamentally at stake in the EU referendum is the primary scale at which British citizens should be governed: the national (Brexit) or the regional scale (Bremain). The scale of governance is contested because different scales involve different configurations of actors, resources, power relations and opportunity structures, privileging some interests and agendas over others.
In the post-war decades, the entire Western-led global economic and political order was designed to consolidate the nation-state as a ‘taken-for-granted’ scale and space of governance. Within Western states, a new Fordist-Keynesian bargain was struck between key social forces, brokered by corporatist states: capitalists bought social peace from labour in exchange for steady expansion in wages and living standards. The Bretton Woods settlement supported this by restricting international finance and regulating currencies, which helped states plan their economies. The postwar order thus upheld ‘the primacy of national economies, national welfare states, and national societies managed by national states concerned to unify national territories and reduce uneven development’, as Bob Jessop puts it. Even the early phase of European integration was designed to support national development, thereby securing ‘the European rescue of the nation-state’.
This consolidation of the national scale and its associated institutions afforded unprecedented access to policymaking for organised labour. Moderate trade unions were directly inserted into decision-making forums alongside government bureaucrats and business representatives. Ordinary people could also hold governments to account through democratic practices. In this peak era of state sovereignty, lines of responsibility and accountability were clear.
This all began to change in the 1970s. That decade’s crisis of capitalist profitability eroded the basis of the Fordist-Keynesian social compact, which shattered amidst renewed labour insurgency. The new right’s solution to the crisis was to smash organised labour, deregulate industry and finance, and restore capitalist hegemony on the basis of a neoliberal social order. Scale was a crucial element in this struggle. The quest for nationally-based development was essentially jettisoned in favour of what we now call ‘globalisation’: the transnationalisation of investment, production and consumption. Allowing investment to flow globally – to wherever had the most ‘competitive’ wages and operating environment – was a vital means to erode the power of organised labour.