Warwick Sociology Journal Volume 1, Issue 4: Money. (Eds) Elliot Bullock Rosa Coleman Adam Gayton Polina Khanova Jessica Tatchell University of Warwick 2014/2015 This journal has been granted the licence to publish the authors’ work to reproduce and distribute the submissions in printed, electronic or any other medium. In return the author(s) assert their Moral Right to be identified as the author, and we promise to respect their rights as the author(s); that their names will always be associated clearly with the submissions; and that while necessary editorial alterations will be made, the substantial body of the piece will not be changed without consulting the author(s). Copyright remains with the author(s). Any queries should be directed to: SociologyJournal@warwick.ac.uk Volume 1, Issue 4: Money Economic Sociology Today 1 Nicolas Gane What challenges do sociologists face in trying to understand markets that are both global and highly technologized in form? 5 Peter Ashton Understanding the main tenets of ordoliberalism and its links to biopolitics. 16 Jessica Tatchell How is consumption made possible: how do brands make use of western conceptions of the exotic other to sell notions of authenticity? 25 Sophia Yacoub Money in Education, Violence in Occupation: Some Reflections on the ‘Sit-in Senate’ Samuel Burgum 33 Gane Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 1-4 Economic Sociology Today Professor Nicolas Gane Sociology Department, University of Warwick The news is currently full of stories about seemingly unconnected ‘economic’ developments of various kinds. Story 1: oil prices have dropped from over $110 to $50 dollars a barrel in a matter of months, placing some oil intensive economies like Libya and Venezuela under huge strain, and leading to the near collapse of some oil dependent currencies, such as the Russian rouble. Story 2: the European Central Bank has introduced negative interest rates, so that institutional investors now have to pay for the bank to hold its money rather than be paid a return in the form of interest. Story 3: Mario Draghi, the president of the ECB, has also recently initiated a €60bn bond buying programme in an attempt to breathe life into the European economy. This follows the launch of a new $712 billion quantitative easing (QE) programme in Japan, and three rounds of QE in the United States that are estimated to have cost households $360bn. Story 4: in Greece, Syriza is the lead party in a new coalition government united in its stand against the politics and policies of austerity. While austerity was designed with the stated aim of cutting public spending and thus debt in relation to GDP, the opposite has been the case: debt has now risen to 175% of Greece’s GDP compared with 113% in 2008 (worryingly it is currently 133% in Italy and 94% in Spain). Story 5: economic inequalities following the recent financial crisis are rising and this is part of a longer trend: over the last 30 years in the US the share of household wealth owned by the top 0.1% is said to have increased from 7% to 22%. And so the news stories roll on. The question is: how should we, as sociologists respond to these developments, which, while often couched in purely economic 1 Gane Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 1-4 terms, are enormously important in terms of their social and political consequences, and which perhaps are not as detached from each as they might at first appear? Let’s start with an admission: most sociologists, even those with an established interest in economic sociology, are rarely engaged with these sorts of issues (at least within their published work). Part of the reason for this is that the present barely figures in economic sociology or in the discipline of sociology more generally. Sociologists tend to be engaged in the study of long term processes rather than specific events, which the classical theorist Max Weber once said should instead be the concern of historians. Fine. But what happens when a crisis like the recent one of 2007- hits? In short, the discipline is ill-prepared. The flagship BSA journal Sociology produced a special issue on ‘Sociology and the Global Economic Crisis’ in October 2014 – roughly 7 years after the collapse of Northern Rock! I would argue that this, however, is not a problem confined to this particular journal, but a problem of a discipline that needs to think again about the time-sensitivity of its own practice. If sociology continues to be tied to a slow regime of publishing (largely dictated by the criteria of audits such as the REF) then isn’t it destined to be a discipline that is always behind the times and thus out of date? There is a debate to be had here about whether sociology should be slow and painstaking exercise that does not jump to immediate conclusions but which locates events in broader developments over time, or whether it should be more concerned with the demands of the present (or perhaps both)? One thing that has happened post-crisis, however, is that the borders between sociology and economics – two disciplines that too often have had different priorities and interests – have started to open up. I see this as an important development. Some might point the finger of blame for the distance between these disciplines at economics, saying that too often it has prioritised formal and mathematical models that have had little relation to empirical reality; that it has had a tendency to promote an anti-sociological view of the individual economic actor; and so on. But sociology is not the innocent party here. In the 1980s, the cultural turn took place at the very moment that it should have been paying increased attention to economics and to political economy, as in many ways the effects and consequences of the neoliberal revolution that started then continue to be felt in the present. This is not to say that 2 Gane Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 1-4 there were no sociologists working on questions of ‘economy’ or ‘markets’, but overwhelmingly this work tended to be of a particular type: science and technologytype studies that looked at the micro-workings of different instruments of economies or markets, but which were largely disinterested in the broader political-economic picture (Donald MacKenzie’s book Material Markets is a clear example of such an approach). But on both sides of the divide, things are changing. There are new initiatives within economics to rethink the discipline after the crisis, and there are signs that sociology is become more engaged with debates within economics and with thinking analytically and critically about ‘the economy’, along with its relation to the ‘social’. An example of this opening of disciplinary borders is the latest issue of the British Journal of Sociology, which addresses the sociological relevance of Thomas Piketty’s book Capital. This venture is an important step for opening genuinely crossdisciplinary dialogue about important issues such as social inequality. But it also not without its problems. The lead article is by Mike Savage, who is Professor of Sociology at the London School of Economics. The argument of his article can be reduced to three simple points: first, that Piketty’s book should be celebrated because it ‘champions’ description as a methodological tool; second, that this book can be used to question grand sociological narratives of epochal change (including those of globalization, neoliberalism and the so-called mobilities paradigm) because economic measures such as the ratio of capital against current income show that social change has, in fact, not been that great; and third, that Piketty’s work can be used to add a further dimension to sociological theories of class because it adds the study of wealth and inheritance into the mix. Why might these points be problematic? Let’s consider them briefly in turn. First, more description? Is that what we need? Yes, description is important as it helps to promote understanding, but is description anything more than good journalism? To go back to the initial paragraph of this paper, there are plenty of descriptions of the impact that the current drop in oil prices is having on the national economy of Russia, as well as descriptions of future scenarios of various kinds, including whether low commodity prices will kick-start Western economic growth, and so on. What is needed is not just more description but sociological analysis of the role of power and 3 Gane Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 1-4 (geo-)politics in such international markets. Equally, we need description and understanding of QE programmes, but we also need analysis of the politics of these programmes and who they are designed to benefit. And this ties into Savage’s final two points. For if you believe that nothing has really changed, or is changing, then this sort of sociological work is not necessary because the answers are there already. And if you believe that the answer is more detailed description of inequality, then analysis of the drivers of inequality (many of which are structural and inherently political – and put into practice by people and organizations that believe in inequality, of which there are many) take a back seat, if indeed they feature at all. But let’s be positive: at least such debates are back on the agenda. A strong economic sociology that is not just descriptive, but also analytical and critically engaged is necessary to confront the big public issues of our time, and to do so by showing that these are not purely economic in origin or form. This is the challenge for economic sociology, and, for me, is also where its excitement lies. 4 Ashton Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 5-15 What challenges do sociologists face in trying to understand markets that are both global and highly technologized in form? Peter Ashton University of Warwick Introduction Weber’s conception of markets and what constitutes social action within them has provided the foundation upon which economic sociology, as a discipline, has been built. However, many markets today are perhaps markedly different from that which Weber ever could have envisioned, both in terms of size and character. Indeed, many markets are becoming increasingly global and highly technologized. For the purposes of this essay, financial markets shall be the case in point. These ‘electronic’ or ‘virtual’ markets connect participants in distant localities within the click of a button, as if they inhabited the same, physical space. The key question then is - what challenges do we as Sociologists face in trying to understand such markets? This is a critical question in the wake of the 2007-8 Global Financial Crash (GFC) but that which sociology has only recently started to seriously try and answer (Carruthers and Kim, 2011). This essay shall argue that the sheer pace of change within financial markets has left much of social theory not yet redundant, but incapable of capturing their full complexity. Not only is the work of classical Sociologists like Weber becoming increasingly inapplicable, so too is the work of more recent social theorists - in particular, Granovetter’s (1985) concept of ‘embeddedness’ and its attendant structuring principles of networks and relational ties. Therefore, at the core of this essay’s argument, is the belief that Sociologists need to challenge their assumptions about the ‘social’ and what it is comprised of. In this vein, the work of Knorr Cetina shall be drawn upon to demonstrate how this might be possible. 5 Ashton Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 5-15 The first section of this essay will evaluate the continuities and discontinuities between previous and modern manifestations of financial markets, charting a brief evolution, which concludes with an analysis of their now highly technologized and global form. The second section will introduce the concept of ‘embeddedness’ and how it has been used to understand financial markets through analyzing networks of interpersonal and interfirm ties. The third section will then directly challenge this approach, demonstrating its inadequacy in understanding modern financial markets by utilizing the arguments and concepts advanced by Knorr Cetina. The fourth, and final section, will then outline three challenges that have arisen out of the preceding analysis, which sociologists need to rise to if they are to try and successfully understand markets that are both global and highly technologized in form. The Evolution of Financial Markets – Continuities and Discontinuities Weber (2000 [1984]) describes early financial markets by comparing them to local markets selling fresh produce in small rural towns. In the latter, the farmer trades what he has produced, selling his material goods to those buyers who are physically present. Exchange then occurs ‘[…] right then and there’ (ibid:309). In contrast to this, Weber (ibid) explains that in financial markets the seller attempts to make a profit from the goods he owns, but does not physically have, by selling them to a buyer. This buyer does not wish to physically own the goods either, but rather sell them on again for a profit. Simply put, no ‘production effort’ goes into them (Knorr Cetina and Preda, 2005). Instead they are inherently speculative. On a fundamental level, this still remains the difference between modern producer markets and financial markets: ‘A financial market does not exist when two or more individuals are prepared to enter into an exchange transaction, but rather when these actors are prepared to enter into promissory engagements: claims and commitments over time based on the promise of future outcomes’ (Knorr Cetina, 2012:122) However, this is arguably as far as the continuities between historical and modern financial markets stretch. Quantitatively, they are wholly incomparable. The market capitalization of global equity markets in 2013 stood at over $64 trillion (World 6 Ashton Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 5-15 Federation of Exchanges, 2013). Trading in foreign exchange markets alone averages $5.3 trillion a day (Bank of International Settlements, 2013). Furthermore, qualitatively, the number and complexity of financial securities goes far beyond that which existed 30 years ago, let alone 120 years ago. A vast array of different equity, bond and derivative products are now tradable on global markets from Credit Default Swaps to Currency Repurchase Agreements. In this light, finance could be considered the fourth pillar of economic activity alongside production, consumption and exchange (Knorr Cetina, 2012). In the UK alone, financial services accounted for 29% of total exports, higher than any other G7 nation (Office for National Statistics, 2014) and it employs over one million people (TheCityUK, 2014). Knorr Cetina and Preda (2005) argue that they are a ‘defining characteristic’ of the corporate economy (financing capital investment), the state (borrowing for deficit management and public investment), the welfare system (pension funds are some of the most powerful actors in financial marketplaces) and popular culture (from the financial sections of newspapers to films such as the Wolf of Wall Street). Castells (2000) goes so far as to say that they have been one of the key drivers of globalization. Essentially, it would appear that we live in a ‘financialized world’ (Epstein, 2005 in Knorr Cetina and Preda, 2012:1) in which financial markets are at the very heart of modern risk-based economies. This also makes them incredibly powerful. Sassen states, ‘[…] the global capital market actually exercises its disciplinary function on national governments and pressures them to become accountable to the logic of these markets’ (2000:27). For example, one can observe this phenomenon with the current currency crisis in Russia (Buckley and Hille, 2014). In the truest sense of the work, financial markets are a global phenomenon. Whilst other markets remain compelled to operate within the context of regulatory frameworks imposed by nation states, financial markets are significantly less compelled to do so, operating from a few key global centers (Sassen, 2012). This is, in part, due to the increasing digitization of financial markets, with the move away from open outcry pits to electronic market places (Zaloom, 2012). Service providers such as Bloomberg and Reuters provide a whole host of market data, news and commentary instantaneously, straight to the screens of market participants. Further to this, the world’s exchanges have become mostly, if not wholly, electronic and the 7 Ashton Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 5-15 vast majority of trading can now be done through electronic brokerage systems. Indeed, algorithmic trading by extremely powerful computers can execute, buy and sell orders within microseconds, taking an increasing proportion of financial activity away from the trading floor and locating it in ‘[…] an air conditioned warehouse full of computers supervised by only a handful of maintenance staff’ (Mackenzie, 2011:16). It is evident, therefore, that financial markets are of critical importance to the functioning of modern, risk-based economies. They cannot be said to be part of the primary economy, but instead dwell in a place entirely of their own (Knorr Cetina, 2012). Consequently, they take on substantively different characteristics to other markets. Namely, their truly global and highly technologized form. Trying to understand financial markets remains a difficult a challenge for sociologists. Due to their incredible pace of change and their complexity, much existent social theory fails offer a fully comprehensive explanation of their structure and sociological underpinning. ‘Embeddedness’ in Financial Markets – A Network Architecture In his seminal work, Granovetter (1985) challenges the position adopted by New Institutional Economics that assumes rational, atomized individuals carry out economic action. Instead, he argues that economic action is ‘embedded’ in social relations. Many economic sociologists have since adopted a similar position with a focus on the ‘network’ architecture of markets (Fligstein, 2001): ‘Social embeddedness is defined as the degree to which commercial transactions take place through social relations and networks of relations that use exchange protocols associated with social, noncommercial attachments to govern business dealings’ (Uzzi, 1997:482) For example, Podolny (2001) characterises networks as the ‘pipes’ through which ‘market stuff’ – information, goods, services, payments – are carried. It is the structure of these ‘pipes’ that link the nodes of the network, structuring and coordinating it (ibid). Formal and informal rules govern and maintain these networks, ‘institutionalizing’ them (Baker et al, 1998). Thus, whilst the financial markets described above can appear ‘impersonal’ and ‘abstract’, social connectivity is 8 Ashton Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 5-15 still present (Carruthers and Kim, 2011). For example, Choi and Sias (2009 in ibid:249) found that institutional investors crowd into and out of the shares of particular industries. Similarly, Hong et al (2005 in ibid:249) found that mutual fund managers are more likely to buy and sell the same stock as managers in the same city as them. Whilst Cohen et al (2007 in ibid:249) discovered that mutual funds tend to invest in companies in which the fund manager and a corporate board member are embedded in the same educational network. However, considering this essay’s previous description of financial markets, as global and highly technologized, one may have expected them to be have become disembedded from social ties and location. Sassen (1991; 2000; 2005; 2012) contends the opposite. He points to the existence of three global cities where financial activity is concentrated - New York, London and Tokyo. These cities account for over a third of global institutional equity holdings and account for 58% of the foreign exchange market (Sassen, 2005). This concentration has occurred, paradoxically, due to the increasingly dispersed nature of finance, which requires global financial institutions to coordinate their huge networks centrally in order to attract top talent and have access to the specialised services that they need. Indeed, Mackenzie (2011) describes how algorithmic trading requires ‘colocation’ to server sites in order for them to maximise their potential. Furthermore, Sassen (2005) suggests that there are two types of information that exist, raw data - which is available to everyone globally – and ‘high order’ data – which requires a social infrastructure to analyse and produce it. ‘In brief, financial centres provide the social connectivity that allow a firm or market to maximise the benefits of its technical connectivity’ (Sassen, 2005:27). For Sassen then, financial markets remain embedded in social relations and location. ‘Disembeddedness’ in Financial Markets – A Flow Architecture However, this analysis would not appear to dovetail with the financial markets that have been previously described. Before the 1980s, financial markets could indeed be seen as both physically and socially embedded in Exchanges like the Chicago Board of Trade. These were places of bodily performance - hand signals, jostling, and shouting constituted the informal and formal rules that served to coordinate market participants (Zaloom, 2012). The move away from these ‘execution’ markets to 9 Ashton Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 5-15 ‘transaction’ markets began with the introduction of the ticker on the New York Stock Exchange in 1867 (Knorr Cetina and Preda, 2007). This new technology, although making Exchanges increasingly redundant, still served to reinforce the ‘pipes’ (Podolny, 2001) through which information flowed and in turn buttressed the need for networks (Knorr Cetina and Preda, 2007). Right up until the 1980s, traders still relied on their networks of relations to find ‘where the market was at’ (ibid). However, this all changed when the market began to be lifted out of these networks and started to reside in only one place – the screen (Knorr Cetina, 2005). This has progressively led to the disembedding of financial markets from both relational ties and space. This is not to say that networks do not still exist in financial markets but to say that they are no longer the ‘salient structuring principle’ (ibid:39). Knorr Cetina (2012) draws upon her qualitative research in foreign exchange (FX) markets, the most global and electronic of financial markets, to demonstrate this. She rejects networks in favour of a ‘flow’ architecture based around ‘scopic systems’ (screens and other attendant software and hardware). This continuously projects a stream of ‘heterogeneous information’ (price, volumes, news, graphs, commentaries etc.) in front of traders like a ‘[…] tapestry, small sections of which are woven in front of us’ (Knorr Cetina, 2012:127). Traders, in turn, act on this information, projecting the market-on-screen forward once again – an ongoing feedback loop, which is fundamentally reflexive in nature (ibid). In this respect, Knorr Cetina does not render technology passive like network approaches but places them alongside humans, at the center of sociological analysis. This appears to better capture their highly technologized nature. It also has consequences for how financial markets are theorized as being coordinated and socially underpinned. This technologically ‘scoped reality’ is available to everyone globally, regardless of location (Knorr Cetina, 2005). The market, as a whole, resides in the screen rather than in a network of interpersonal and interfirm ties. Market participants are intensely disciplined in their observation of the market-on-screen (Abolafia, 1996), themselves becoming, ‘[…] embodied instruments for reading the market and reacting to its every twitch’ (Zaloom, 2012:179). It is this intense, unforgiving orientation of traders to the market-on-screen that acts as the primary coordination mechanism rather than networks or relational ties (Knorr Cetina, 2012). What is 10 Ashton Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 5-15 more, this temporal coordination results in an ‘intersubjectivity’ between market participants or, what could be called, a global ‘We relation’ (Knorr Cetina and Bruegger, 2002a). For Knorr Cetina and Bruegger (ibid) therefore, it is the technological nature of financial markets that coordinate them, bringing those in distant localities together as if they were in one place – making them truly global. It is these ‘global microstructures’ that form the sociological underpinning of financial markets, acting as the ‘glue’, rather than relational ties (ibid). Knorr Cetina (2005) also contends that the locational embedding of financial activity in three global cities, are better described as ‘bridgeheads’ through which the markets continuously enter into, pass through and leave. Financial markets exist in their own ‘timeworld’, following the sun around the globe, being passed from one ‘book’ to another (Knorr Cetina and Bruegger, 2002). Such an analysis not only recognises the now highly technologized nature of financial markets but also their genuinely global form. Thus, new ways of theorizing financial markets may give Sociologists better analytical tools with which to research and understand them. Knorr Cetina has given one such example. The Challenge for Sociologists As discussed, the concept of ‘embeddedness’ does not allow sociologists to fully comprehend highly technologized and global financial markets, ‘Presumbly, pure relational or network forms of coordination and the reflexive, temporal form of coordination that we have described are two different things’ (Knorr Cetina and Bruegger, 2002:932). This not to say that ‘network’ approaches should be jettisoned but that relational ties should be seen as reinforcing temporal coordination (ibid.). Consequently, Sociology has to rise to three challenges to understand these markets, which is of critical importance, due to their centrality to modern economies and because they perhaps set the precedent for what many other markets may look like in the future. Firstly, it is necessary to expand and challenge (rather than replace) what Sociology understands as the ‘social’. As Knorr Cetina and Bruegger (2002b) argue, financial market participants’ orientation to one, common object has led to a new form of ‘postsocial’ relations, coordinated temporally rather than through networks. Nevertheless, what Strum and Latour (1987 in MacKenzie, 2002:84) coin ‘baboon theory’ remains applicable to financial markets - genuine social connectivities still do 11 Ashton Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 5-15 exist (MacKenzie, 2002). Secondly, as a result of this, Sociologists need to recognise the importance of technology and other objects. The ‘social’ should now include relationships between humans, formula, algorithms and other artefacts (Beunza and Stark, 2012). In the case of financial markets, it is traders’ observation of scopes that forms the basis of postsocial ‘object relations’ (Knorr Cetina and Bruegger, 2000). Nevertheless, striking the correct balance will continue to be a challenge. Sociologists should not overstate the role of technology in markets (Pardo-Guerra, 2012). The failure of algorithmic systems during the ‘Flash Crash’ demonstrate this. Technology still requires human intervention when surprises occur. And thirdly, in order for social theory to keep apace with the incredible speed of change that is occurring in these markets, whilst at the same time maintain its critical perspective, Sociologists will have to experiment with mixing new and old forms of theory production in order to remain relevant (Gane, 2006). Conclusion This essay has used the case study of financial markets to demonstrate the difficulty Sociologists face in trying to understand markets that are both global and highly technologized in form. It has also outlined the importance of doing so. The impact of the 2007-8 GFC was, and still is, being felt far and wide. Financial markets are at the core of modern risk-based economies. As the near-perfect embodiment of neoclassical economic theory, understanding financial markets may also provide Sociologists with an insight to what other markets may look like in the future. The work of classical sociologists such as Weber offer only limited utility in this endeavour. As discussed at length, so too does more recent Sociological theory, in particular the concept of ‘embeddedness’ and its attendant structuring principles of networks and relational ties. This is not to say that such concepts are redundant, but to say that they do not fully capture the modern nature of financial markets. In order to complete this task, Sociologists will have to challenge themselves and the paradigms within which they work to move beyond traditional conceptions of the ‘social’ and what it is comprised of. Knorr Cetina and others have already started to do so. Her analysis of financial markets as ‘Global Response Systems’ that are temporally coordinated through ‘scopes’, has theorized financial markets as exhibiting a ‘flow’ architecture as opposed to a networked one. In so doing, she has 12 Ashton Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 5-15 brought the role of technological objects to the forefront of the sociological analysis of financial markets. It is with the production of new social theory, a challenge in itself due to the sheer speed of change in modern society, that Sociologists can better try to understand markets that are both global and highly technologized in form. References Abolafia, M.Y. (1996) Making Markets: Opportunism and Restraint on Wall Street. 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Social Theory in the Information Age’, Information, Communication and Society, 9(1), pp. 20-38. Granovetter, M. (1985) ‘Economic Action and Social Structure: The Problem of Embeddedness’, American Journal of Sociology, 91(3), pp.481-510. Knorr Cetina, K. (2005) ‘How are Global Markets Global? The Architecture of a Flow World’ in Cetina, K.K. and Preda, A. (eds.) The Sociology of Financial Markets, ch.2, pp. 38-61, Oxford: Oxford University Press Knorr Cetina, K. (2012) ‘What is a Financial Market? Global Markets as Microinstitutional and Post-Traditional Social Forms’ in Knorr Cetina, K. and Preda, A. (eds.) The Oxford Handbook of the Sociology of Finance, Ch. 6, pp. 115-133, Oxford: Oxford University Press. 13 Ashton Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 5-15 Knorr Cetina, K. and Bruegger, U. (2000) ‘The Market as an Object of Attachment: Exploring Postsocial Relations in Financial Markets’, The Canadian Journal of Sociology, 25(2), pp. 141-168. 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(2011) ‘How to Make Money in Microseconds’, London Review of Books, 33(10), pp. 16-18. Pardo-Guerra, J.P. (2012) ‘Financial Automation, Past, Present and Future’ in Knorr Cetina, K. and Preda, A. (eds.) The Oxford Handbook of The Sociology of Finance, Ch.29, pp. 567-586, Oxford: Oxford University Press. Podolny, J.M. (2001) ‘Networks as the Pipes and Prisms of the Market’, American Journal of Sociology, 107(1), pp. 33-60. Sassen. S. (1991) The Global City: New York, London, Tokyo. Princeton, NJ: Princeton University Press. Sassen, S. (2000) ‘Digital Networks and the State: Some Governance Questions’, Theory, Culture and Society, 17(4), pp. 19-33. Sassen, S. (2005) ‘The Embeddedness of Electronic Markets: The Case of Global Capital Markets’ in Cetina, K.K. and Preda, A. (eds.) The Sociology of Financial Markets, ch.1, pp. 17-37 Oxford: Oxford University Press. Sassen, S. (2012) ‘Global Finance and its Institutional Spaces’ in Cetina, K.K. and Preda, A. (eds.) The Oxford Handbook of The Sociology of Finance, Ch.1, pp. 13-32, Oxford: Oxford University Press. Weber, M. (2000[1894]) ‘Stock and Commodity Exchanges [Die Börse]’, Lestition, S. (trans.), Theory and Society, 29:305-338. 14 Ashton Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 5-15 Uzzi, B. (1999) ‘Embeddedness in the Making of Financial Capital: How Social Relations and Networks Benefit Firms Seeking Financing’, American Sociological Review, 64(4), pp. 481-505. Zaloom, C. (2012) ‘Traders and Market Morality’, in Knorr Cetina, K. and Preda, A. (eds.) The Oxford Handbook of The Sociology of Finance, Ch.9, pp. 169-186, Oxford: Oxford University Press. Online: Bank for International Settlements (2013) Triennial Central Bank Survey, September. http://www.bis.org/publ/rpfx13fx.pdf Accessed: 22nd December 2014. Buckley, N. and Hille, K. (2014) ‘Russia Lurches Towards Financial Crisis’, The Financial Times, 16th December. http://www.ft.com/cms/s/a46968ba-84f5-11e4bb6300144feabdc0,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.co m%2Fcms%2Fs%2F0%2Fa46968ba-84f5-11e4-bb6300144feabdc0.html%3Fsiteedition%3Duk&siteedition=uk&_i_referer=#axzz3Ny4N rN5I Accessed: 3rd January 2015. Office for National Statistics (2014) An International Perspective on the UK – Gross Domestic Product, 24th April. http://www.ons.gov.uk/ons/rel/elmr/aninternational-perspective-on-the-uk/gross-domestic-product/art-gdp.html#tab-Theexpenditure-approach Accessed: 19th December 2014. TheCityUK (2014) Key Facts About Financial and Related Professional Services, January. http://www.thecityuk.com/research/our-work/reports-list/key-factsabout-uk-financial-and-related-professional-services/ Accessed: 22nd December 2014. World Federation of Exchanges (2013) 2013 WFE Market Highlights, 28th January. http://www.world-exchanges.org/files/2013_WFE_Market_Highlights.pdf Accessed: 28th December 2014. 15 Tatchell Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 16-24 Understanding the main tenets of ordoliberalism and its links to biopolitics. Jessica Tatchell The University of Warwick Ordoliberalism, a German variant of neoliberalism, has received a renewal of interest since the 2008 financial crash. Since the crisis, we have seen state attempts to reregulate and gain control of the markets and increased emphasis on the need for market regulation (Jessop, 2010). Such reforms are reminiscent of the ordoliberal need of a strong state and constant vigilance and intervention within the markets. Ordoliberalism emerged in the late 1920’s through the writings of German economists and social theorists, eventually unified in the form of the Freiburg School in the 1930’s by Walter Eucken, as well as in the journal ‘Ordo’ in 1948 (Bonefeld, 2012). This school of thought had a profound influence on German post-war economic policy, helping to formulate a theoretical foundation for the implemented social market economy. It is founded on the dogmatic beliefs of a strong state and principles of competition enabling autonomy for the individual (Dardot and Laval, 2009). Foucault (2008) deemed ordoliberalism a noteworthy ideology to appraise; its significance lying in the general misconception that neoliberal thought emerged from the Chicago School rather the Freiburg School. This article outlines the founding and main ideologies of ordoliberalism before engaging with Polanyi, who wrote within the same decades, as a form of critique. The final part of the article is dedicated specifically to Foucault’s interpretation of ordo/neoliberalism, and assesses the extent to which ordoliberal policy is biopolitical as well as how it fits with the contemporary need to ‘invest’ in human capital. It concludes that ordoliberalism may prove useful for future analysis to enrich our knowledge of the relationship between the state and need to regulate and ‘invest’ in oneself. The basis of ordoliberal thought emerged in the late 1920’s – early 1930’s through the work of its primary and founding thinkers: Walter Eucken, Wilhelm Röpke, 16 Tatchell Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 16-24 Alexander Rüstow, Franz Böhm, and Alfred Müller-Armack. The ordoliberals considered it their task to implement an ‘order’ (ordo) that would allow capitalism to flourish in a way that it never could under a liberal market economy or a socialist centralist economy (Dardot and Laval, 2009; Ptak, 2009). Their ideas represented a mode of social transformation and emerged in opposition to Nazism. The ordoliberals declared the horrors of Nazism as the natural and expected outcome of a planned and central economy. In Civitas Humana (1948 [1944]), Röpke stated it was impossible for a collectivist economy to be anything but coercive, describing socialism as ‘the mortal disease of our epoch’ (1948: 95). He concluded a government could only be ‘healthy’ if it is decentralised. However, a laissez-faire economy was by no means the answer. The Great Depression and ‘crisis’ of capitalism stood as sufficient evidence that laissez-faire economics were inefficient: the economy could not and should not order itself (Bonefeld, 2012). Rüstow asserted laissez-faire economics as responsible for ‘the vulnerability of the capitalist market economy to the crisis of the business cycle’ (1980 [1949]: 670). In other words, it was susceptible to crisis due to its inability to fully facilitate and regulate its procedures against monopoly and ‘greedy self-seekers’ (Rüstow, 1932 in Bonefeld, 2012: 648). The solution to Röpke was an ‘economic humanism’ - more often referred to as a ‘third way’ - that aimed to go ‘over and above capitalism and collectivism’ (1948: 10). Post-war Germany faced a particular dilemma: how do you legitimise a state that ceases to exist? Furthermore, how do you proceed to ensure this state is then accountable to the people who hold a given amount of distrust after the trauma of Nazism? (Foucault, 2008). The ordoliberals saw the solution as the market, wherein its principles behave as a founder of the state as well as a guarantor for those who were weary (Dardot and Laval, 2009). Foucault articulates it as ‘a state under the supervision of the market rather than a market supervised by the state’ (2008: 116). Such a level of faith lies within their critique of liberalism, where any supposed defect was not in the market but instead, was a defect in the state. The market itself holds no intrinsic flaws and is thus suitable as acting as a regulatory and organisational system of the state. It is useful to draw upon Foucault’s analogy of the Panopticon in ‘Discipline and Punish’ (1991) to exemplify what he considered a raw contrast between classical and neoliberal forms of government. Using this analogy, no longer is the state a central presence observing and regulating the market (this is Foucault’s 17 Tatchell Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 16-24 understanding of classical liberalism), but under a neoliberal government, the market becomes a regulator and both the state and society are exposed to the permanent audit of the market and its principles (Gane, 2012). At this point, it is important to stress that despite their utmost faith in the market, the ordoliberals should not be associated with laissez-faire principles. They did not believe that the operation of capitalism is predetermined, nor that the market was a natural phenomena (Foucault, 2008). To function at its optimum it must be predicated on legal, social and moral frameworks formulated and implemented by an omnipresent state. Röpke exemplifies this quite clearly in ‘The Moral Foundations of Civil Society’: ‘a satisfactory market economy capable of maintaining itself does not arise from our energetically doing nothing’ (1996 [1948]: 28). As such, the market economy is a construction relying upon efforts of the state and its frameworks. These ‘frameworks’ are vital and allow the control and manipulation of market conditions without directly intervening into the market itself. For example, by intervening within technologies, education and the law, the state is controlling the conditions required for markets to function and flourish without directly touching market mechanisms (Foucault, 2008). It can be considered as an ‘active policy without state control’ (Foucault 2008: 132). It is here in particular we begin to see the shift from classical liberalism and the frugal government associated with Adam Smith to a neoliberal mode of governance identified by ‘permanent vigilance, activity, and intervention’ (Foucault, 2008: 132). Röpke goes to the extent of describing the role of government as a ‘permanent and clear-sighted market police’ (1950 [1941]: 228). This quote clearly demonstrates the central role of a strong state within ordoliberal thought. A strong state was viewed as essential to securing economic liberty and limit the risk of humans being reduced to the unnatural phenomena of the market (Bonefeld, 2012). Acquiring such economic liberty relied upon the aforementioned ‘third way’, referred to in practice as the concept of a social market economy (Soziale Marktwirtshaft), a term propagated by Müller-Armack (Dardot and Laval, 2009). The ordoliberal ideal of a social market economy (which was not identical to the actual model applied in post-war Germany) was a dual of economic policy (Wirtschaftspolitik) and a ‘policy of society’ (Gesellschaftspolitik). The economic policy was primarily developed by economists Eucken and Böhm within a juridico-political framework that focused on 18 Tatchell Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 16-24 economic growth as the producer of social progress. However, this article is more interested in the policy of society and the more sociological accounts of Röpke, Rüstow and Müller-Armack. The overarching ordoliberal concern for the market is also reflected in its social policy and again exemplifies the shift from classical to neoliberal modes of thought. The ordoliberal social policy does not foster a market society based on the exchange of commodities, but instead focuses on the concept of competition (Foucault, 2008). Of course, competition has always existed in society; George Simmel even suggested it is intrinsic to social life (2008 [1903]). Yet, what is distinctive about the ordoliberal approach to competition is its need to be regulated. An institutional framework is vital to allow competition to flourish and to prevent monopoly occurring (Röpke, 1948). Monopoly is ‘a foreign body in the economic process’ (Röpke, 1950: 228) and a framework preventing external processes interfering within the markets is essential (Eucken, 1950 [1940]). Competition’s role as a regulator is what makes it such a significant tenet of ordoliberalism. Principles of competition are penetrated into the social through intervention within the fabrics of society and serve as a form of governance. Müller-Armack (1978) describes it as not simply an ‘unfolding’ of a competitive order, but an integration of competitive mechanisms into all areas of society so that it becomes a total way of life. Foucault (2008) describes a society subjected to such mechanisms of competition as an ‘enterprise society’. The homo œconomicus (economic man) sought after in such a society has shifted from the consumer or man of exchange to the entrepreneur. The ordoliberal considers it imperative that the individual is ‘a sort of permanent and multiple enterprise’ (Foucault, 2008: 241), where the economy extends into the social and the individual’s life and is wedged within a framework of enterprises – his family, property and even retirement. Rüstow described this process as ‘Vitalpolitik’, a politics of life (Rüstow, 1980). A social market economy is a task of vitalpolitiks, which can be understood as securing the free market, which is only safe when predicated on a society consisting of individuals willing to embrace their individual responsibility and become an entrepreneur of their own labour power (Bonefeld, 2012; 2013). Vitalpolitiks is the rationale of enterprise becoming embedded into the social fabrics of society, ensuring that the market, competition and enterprise are the foundational governing powers. The ‘social’ in social market economy is derived from the ability for competition to act as a bonding mechanism that integrates the 19 Tatchell Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 16-24 individual into society (Bonefeld, 2012). Furthermore, it guarantees individual autonomy; freedom and competition are entwined and one cannot exist without the other (Dardot and Laval, 2009). In sum, ordoliberal social policy is not a compensatory mechanism with the aim to redistribute wealth, but an intervention into the grains of society promoting individual responsibility and market principles. Inevitably, German socialists critiqued the ordoliberal approach. They asked how it was possible for a social market economy to be social when it was principally opposed to any form of social solidarity and undermined the role of a welfare state (Dardot and Laval, 2009). Müller-Armack directly responded to these critiques, arguing that a social market economy meets the collective desires of society. He described it as the most ‘superior’ economic system in that it satisfies the needs of both the market and the social (Dardot and Laval, 2009). Unfortunately, there is currently a scarcity of direct engagement with ordoliberalism in English. However, something we may begin to consider is whether such profound market influence in society is as good a thing as the ordoliberals claimed. To this end, it is useful to reflect upon the work of Karl Polanyi, who did not directly engage with the German ordoliberals, but also wrote in the 1930-40’s about the role and effects of the market within society. Interestingly, the ordoliberals and Polanyi have similar starting points: the market is not a natural occurrence and it cannot be self-regulating. The underlying sentiments in their perspectives differ in that whilst the ordoliberals viewed the market as inherently flawless, Polanyi approached it as an abnormal feature of modern society. In ‘The Great Transformation’ (1944), Polanyi argued that prior to the industrial revolution, society was based on principles of reciprocity, redistribution and housekeeping. His critique of the modern economy - which he perceived as being controlled by the markets - is that it does not conform to any other part of human history. Polanyi and the ordoliberals both recognised that in order for a market economy to flourish, it had to be predicated on a market society: ‘a market economy can only exist in a market society’ (Polanyi, 1944: 74). Polanyi however, did not view this as something to be celebrated or encouraged. For the ordoliberals, a social market economy guaranteed individual autonomy and social integration through the deterrence of collective and proletarianised structures such as a welfare system. Röpke argued that as society collapses into the form of a 20 Tatchell Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 16-24 mass collective, we witness a ‘remarkable loss of social integration [emphasis in original]’ (1942: 240) due to increased standardisation destroying the notion of community. The solution is a social policy based on ingraining market principles into society through the promotion of competition and enterprise. Polanyi on the other hand, warned that ‘to allow the market mechanism to be the sole director of the fate of human beings and their natural environment … would result in the demolition of society’ (1942: 76). Such a statement could be considered extreme, yet Block and Summers (2014) use Polanyi’s critique of the free market to reflect upon the rise of free market ideology over the past few decades and alongside it, increasing inequalities and persistent financial crises. Polanyi’s critique is hereby useful to reflect upon the negative effects of a society wholly submissive to market mechanisms. Having engaged with the main tenets of ordoliberalism, the article will now reflect upon Foucault’s lectures on biopolitics, his stance on ordo/neoliberalism and why he felt this was important. Previously criticized for overlooking the role of the state and institutions in his theory of governmentality (Garland, 1997), the relatively recent translation of ‘The Birth of Biopolitics’ shed new light upon Foucault’s theories on discipline and governance. However, despite its title, Foucault’s lectures directly touch the concept of biopolitics very little. Instead, we are provided with a genealogical analysis of the ‘art of government’. Indeed, he set out with the full intention of providing a course on biopolitics, yet detoured and spent a great deal of the year discussing ordo/neoliberal modes of government instead. He admits in the course summary that the entire course ‘ended up being devoted entirely to what should have been only its introduction’ (2008: 317). Given that his accounts are often largely historical in nature, these lectures are striking in that what he was tackling was a contemporary issue. In fact, it was only a month after the final lecture on biopolitics that Margaret Thatcher was elected British prime minister and the West saw the emergence of a decade strongly associated with neoliberal doctrine. One of the reasons he discussed ordo/neoliberalism at such great length was to challenge what he considered the ‘problematic’ contemporary understanding of neoliberalism, for it is ‘not Adam Smith… not market society… not the Gulag on the insidious scale of capitalism’ (Foucault, 2008: 131). Such a dismissive approach was deemed problematic and he wanted to demonstrate how neoliberalism was something 21 Tatchell Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 16-24 substantial within its own right. Of course, we can argue that his ordo/neoliberal accounts are directly linked to biopolitics, however the topic itself was not explicitly addressed until the end of the lectures, and even then it is with brevity. Biopolitics and ordo/neoliberal governance appear inseparable to Foucault, who stated in one of the lecture manuscripts: ‘But who does not see that this [biopolitics] is only part of something much larger, which [is] this new governmental reason?’ (2008: 22). This mode of ‘governmental reason’ may be easy to comprehend when considering the regulation of ‘mad people, patients, delinquents, and children’ (Foucault, 2003: 186), but what Foucault seems to be intent on emphasising is the extent of its validity when considering ‘phenomena of a completely different scale, such as economic policy… or the management of a whole social body’ (2003: 186). The governance of a whole social body can be exemplified through ordoliberal doctrine as we return to the concept of vitalpolitiks and link it to human capital. The homo œconomicus in an enterprise society is the man who embodies his own product. This represents a shift from the collective to the individual with increasing emphasis on the need to ‘invest’ in one’s human capital. Röpke discusses this at length in Civitas Humana, describing the ‘deadly dangers of mass civilisation’ (1948: 32) and the need for frameworks to promote the individual and avoid the risk of a ‘decayed’ government who succumbs to a welfare state and the consequential loss of individual autonomy through proletarianised institutions. However, such an intense focus on the individual results in the need for the entrepreneur to ‘invest’ in his human capital. Foucault (2008) specifically discusses human capital in relation to mobility, familial relationships, education and genetics. His position on genetics is especially interesting. Rather than accepting genetic determinism, to enhance ones human capital we can make a risk assessment on our predisposition to disease or even characteristics that increase the chance of becoming an inherent risk. Furthermore, to ensure your future child has a high level of hereditary human capital, the need to make an investment in their genetic makeup is apparent; whether this is through choice in reproductive partners or through technology. The result is being branded with a ‘good’ or ‘bad’ genetic makeup and consequently a ‘high’ or ‘low’ level of hereditary human capital. Thus Foucault (2008) views human capital as inseparable from notions of screening, quantification and control. Biopolitics, first addressed by Foucault (2003) in his lecture series ‘Society Must be Defended’ in 22 Tatchell Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 16-24 1975-6, can be understood as the extension of state power to govern whole populations. Whilst Foucault did not make an explicit link between biopolitics and ordo/neoliberal perspectives on vitalkpolitiks and human capital, it is possible for readers to draw the link themselves. When we consider the ordo/neoliberal policies this article has discussed, and deliberate their encouragement to govern and improve oneself, we can perhaps consider ordo/neoliberalism as biopolitical. It is unfortunate that this particular lecture series was never expanded upon in Foucault’s future work. Of course, The Politics of Life Itself (2007) by Nikolas Rose provides a contemporary account of biopolitics and human genomics. Rose acknowledges the link between liberal government and processes of autonomization and marketization, however the role this liberal mode of government and its policy plays in genomics and contemporary biomedical approaches are not discussed at any length. Perhaps an expansion on Foucault’s understanding of ordo/neoliberal government and its position in the contemporary need to screen, regulate and invest in the self could prove a worthwhile site for future discussion. References Block, F. and Somers, M. R. (2014) The Power of Market Fundamentalism: Karl Polanyi’s Critique. London: Harvard University Press. Bonefeld, W. (2012) ‘Freedom and the Strong State: On German Ordoliberalism’, New Political Economy, 17 (5), pp. 633-56. Bonefeld, W. (2013) ‘Human economy and social policy: On ordoliberalism and political authority’, History of the Human Sciences, 26 (2): pp. 106-25. Dordot, P. and Laval, C. (2009) The New Way of the World: On Neoliberal Society. London: Verso. Eucken, W. (1950) The Foundations of Economics: History and Theory in the Analysis of Economic Reality. Translated from German by Hutchison, T. London: W. Hodge. Foucault, M. (1991) Discipline and Punish: The Birth of the Prison. London: Penguin Group. Foucault, M. (2003) Society Must be Defended. Translated from French by Macey, D. New York, NY: Picador. Foucault, M. (2008) The Birth of Biopolitics. Translated from French by Burchell, G. Basingstoke: Palgrave Macmillan. Gane, N. (2012) ‘The governmentalities of neoliberalism: panopticism, postpanopticism and beyond’, The Sociological Review, 60: pp. 611-34. 23 Tatchell Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 16-24 Garland, D. (1997) ‘“Governmentality” and the problem of crime: Foucault, criminology, sociology’, Theoretical Criminology, 1 (2): pp. 3-27. Jessop, B. (2010) ‘The “Return” of the National State in the Current Crisis of the World Market’, Capital Class, 34 (1): pp. 38-43. Müller-Armack, A. (1978) ‘The Social Market Economy as an Economic Social Order’, Review of Social Economy, 36 (3): pp. 225-31. Polanyi, K. (1944) The Great Transformation. Boston, MA: Beacon Press. Ptak, R. (2009) ‘Neoliberalism in Germany: Revisiting the Ordoliberal Foundations of the Social Market Economy’ in Mirowski, P. and Plehwe, D. [eds.] The Road to Mont Pélerin. London: Harvard University Press. Röpke, W. (1942) International Economic Disintegration. London: W. Hodge Röpke, W. (1948) Civitas Humana [A Humane Order of Society]. Translated from German by Fox, C. S. London: W. Hodge. Röpke, W. (1950) The Social Crisis of Our Time. Translated from German by Schiffer Jaconsohn, A. & P. London: W. Hodge. Röpke, W. (1996) The Moral Foundations of Civil Society. Translated from German by Spencer, C. Brunswick, NJ: Transaction Books. Rose, N. (2007) The Politics of Life Itself. Oxford: Princeton University Press. Rüstow, A. (1980) Freedom and Domination: A Historical Critique of Civilisation. Translated from German by Attanasio, S. Guildford: Princeton University Press. Simmel, G. (2008) ‘The Sociology of Competition’, Canadian Journal of Sociology, 33 (4): pp. 957-78. 24 Yacoub Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 25-32 How is consumption made possible: how do brands make use of western conceptions of the exotic other to sell notions of authenticity? Sophia Yacoub University of Warwick Commenting on how ideas of authenticity and counter culture are used in advertisement to further a brand’s value, Botterill states that: “While authenticity once served as an antidote to mass society, today advertisers use it to soothe their young audiences’ anxiety that authenticity is no longer possible” (Botterill, 2007, 106). In the postmodern, technologically advanced, standardized society, experiences of constraint and lack of meaning and spontaneity are common, and to look for authentic alternatives to mass society is frequent practice. Joseph Heath and Andrew Potter argue, in their book The Rebel Sell that the ‘western’ world is in perpetual rejection of conformity as a result of the experiences of trauma due to the Second World War and the totalitarianism of nationalist socialism, and that this is shown in the way people consume for their own individuality- and supposed nonconformity projects (Heath, Potter, 2006, 327). In this essay I will explore the idea that counter culture, and that which is deemed outside the norm (and the search for alternatives to the mainstream) inevitably becomes subsumed by the market through advertisement and branding and that this search for individuality and alternative might even be what drives the consumer market, especially in terms of fashion and lifestyle products. I will argue that the search for authenticity has a way of not only being hijacked by the market (whilst at the same time playing an important part in it) but also that members of dominant cultures use conceptions of the ‘other’ in their individual identity projects. I will look at how and why tropes of marginalized groups are used to make products seem authentic and desirable. 25 Yacoub Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 25-32 Concepts such as otherness and authenticity are often used in the discourses of marketing; being aware of authentic social markers and products, often taken from those outside of the Eurocentric norm and to be able to mimic them (to a level that is fairly easy to understand), is viewed as a form of social and cultural capital (Bourdieu, 1986). This sort of capital allows for the dominant social classes, races, ethnicities, genders and sexualities to further their quest for image building signifiers of cultural intermediation and taste making. This can be linked to a form of cultural appropriation, where traits of culturally marginalized groups are used mainly for the identity projects of the white, heterosexual, middleclass, to express a level of social awareness, ‘worldliness’ and individuality whenever deemed suitable by these dominant groups. This is problematic, as groups of marginalized people are only seen to inhabit aspirational qualities and ascribed value in cultural contexts when they become valuable for the consumer market and by dominant fractions of consumers. Take for example trends such as wearing bindis, Native American headdress and colourful, “tribal”-patterned scarves and other ornaments; many brands such as Urban Outfitters and Topshop co-opt these cultural signifiers in order to offer mainstream consumers a way into these ‘unexplored realms’ (at least to white Europeans) of expression. So when a white person grows bored of the mundane, everyday, confortable life, they might put on an American headdress and go to a festival in the Nevada desert without consideration of the anti-colonial struggles for land rights and identity of the Native American people. Similarly, white British people will put on ‘Bollywood’ themed parties without consideration of the Imperial British colonial remnants in India and the rest of the world today (Hook, 1995). Edward Said writes about the conceptions that ‘western’ culture creates about ‘eastern’ culture and about how the ‘east’ becomes romanticized through the gaze of the ‘west’ in Orientalism from 1977. The term Orientalism refers to the patronizing depicting that European and American societies have created about the Middle East, other parts of Asia and parts of Africa. He argues that the way the orient has been constructed by the west is mainly in Eurocentric terms that exotify the other (Said, 1977). This becomes relevant in terms of consumer culture as these sorts of narratives of the exotic make consumption of the ‘other’ possible. Holt argues that contemporary consumers look to brands for contributions towards 26 Yacoub Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 25-32 their own, individual, identity projects. Here authenticity becomes a marker of how well a brand constitutes a cultural resource for these identity projects (Holt, 2002). Brands can fulfill these levels of authenticity by offering consumers objects and artifacts such as clothes, accessories and home decor that allow for access to the world in new and supposedly creative ways that contribute towards individual cultural, and social capital projects. This is juxtaposed with earlier, modern marketing that mainly constituted of ‘culture-making’ rather than ‘culture-imitation’. He writes that: “The postmodern branding paradigm is premised upon the idea that brands will be more valuable if they are offered not as cultural blueprints but as cultural resources, as useful ingredients to produce the self as one chooses.” (Holt, 2002, 83) In this quote Holt describes how in postmodern marketing and branding a focus lies in offering consumers access to cultural resources to produce the self, or the image of the self, as opposed to earlier marketing which would have focused on offering culture in itself. Bell Hooks provides further analysis on the topic of cultural appropriation in the contexts of “consuming the other” and refers to the colonial discourses surrounding this type of co-option in terms of the longing for exotic “otherness” and the wish to consume tropes of those deemed ‘other’. She writes “Within commodity culture, ethnicity becomes a spice, seasoning that can liven up the dull dish that is mainstream white culture” (Hooks, 1992, 366). Hooks argues that using race and ethnicity for commercial and consumption purposes allows members of dominant classes, races, genders and sexualities to reassert their power over the ‘other’ by using the cultural markers of those who have been colonialized by the imperialist nations in the west. Crockett describes how ‘blackness’, or traits of black and urban culture, is used in advertisement by ‘idealizing and essentializing blackness’ as a form of ‘consuming others’ strategy in marketing (Crockett, 2008, 255). He describes that blackness is exotified and commodified by marketing companies in an array of ways to make brands seem to be in contestation of the mainstream consumer market, and to give 27 Yacoub Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 25-32 access to a sense of worldliness and experience to its consumers. Similarly, Botterill gives example of how in one of her research samples; a European Levi’s commercial, myths of black and urban culture is used: “A young black, but not too black, man walks down a city street dressed in baggy jeans, tee shirt, leather jacket and baseball cap. He walks by a black bouncer dressed in a suit, protecting the entrance to a club. […] The bouncer provides the perfect, silent, authoritarian foil against which the young man’s authenticity is expressed. Street wise, the young man begins his patter by pointing out he is aware he cannot enter the club because of his inappropriate dress, but goes on to defend his style, thereby challenging the social convention that prevents his entry. […] Authenticity is encoded by depicting a tension between work, formality and rules, and play, rejection, creativity.” (Botterill, 2007, 118) In this quote, Botterill is describing the type of othering that allows those who fit the norm to access to novelty ways of consumption. In the example, a black male in typical urban clothing is contrasted with another black male, only that the latter is deemed “inauthentic” because he has succumbed to performing that which is presumably coded as “white”. Here we come back to the idea of cultural identity production in the practices of commodification and consumption of the ‘other’; Individuals of often marginalized groups, who have less access to work, education and other material necessities in underprivileged urban areas in Europe and North America are made to seem as rebellious heroes in reaction to the modern western society. They are romanticized and made examples of authentic individuals free from the mainstream all for the pleasure of the neo-colonialist consumption culture (Botterrill, 2007, 111). But these authentic/romanticized narratives about certain marginalized groups are only temporary, because the consumer market changes rapidly and something is only seen as ‘cool’ by advertising companies as long as it hasn’t been done yet because there is a constant need to reinvent the brand and what is offered to the consumer (Heath, Potter). Similarities can be drawn about the commodification of LGBTQ+ culture. Lesbian women’s lives are fetishized in fashion advertisements such as in a Christian Dior as 28 Yacoub Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 25-32 from the year 2000, where two half naked young girls, oiled up and dressed in a little bit of denim are portrayed in objectifying sexual poses insinuating strong attraction to one another. The photo could be perceived as an intimate meeting between two lesbian women but are clearly aimed at the straight, male gaze for the consumption of mainly straight people. This strips lesbian women of their own agency to define what lesbian existence means as it becomes sold for the patriarchal mass market. Similarly, gay men’s lives are often used in advertisement to make brands seem attractive and progressive and at the same time Gay men are depicted in TV-series and films such as Sex and the city and Glee as the stereotypical gay best friend, always there to make the straight girl chose the right dress and tell her she’s pretty. This type of representation has been used in marketing by for example apple: In one apple advertisement, workers who can be said to carry some social signifiers associated with the LGBTQ+ community and their families and friends, are depicted taking part in the San Francisco pride festival. The atmosphere of the advertisement is very bright and cheerful and later on an upbeat song by Coldplay starts playing, accompanying a big crowd of apple workers marching through the streets of San Francisco with pride flags in their hands, waving and cheering. The advertisement finishes in the slogan “inclusion inspires innovation”. This is a clear example of something as subversive as gay pride being appropriated by the mass market for branding purposes. The ending slogan can be interpreted as slightly naive and maybe even a bit thoughtless of Apple because it may as well be read as apple admitting that non-normative sexualities only are valuable if they can contribute to the ‘innovation’ of the company. Of course Apple profits from this type of pinkwashing, in contemporary western culture, allegiance to the LGBTQ society is seen as progressive. This can surely be described as commodification of ‘otherness’ in terms of the gender, sexualities and sexual practices that are showcased and that are viewed as outside of the norm. In Kozinet’s ethnographical study of the festival and social project ‘burning man’, he notes that the dominant ethos of the counter culture project, which springs from a neo-anarchist group, is about contesting the values of the market economy, and creating new discourses and modes of interaction by, for example, using gift economy and by having a ban on logotypes (Kozinets, 2002). Kozinets recalls one of 29 Yacoub Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 25-32 his interviews: “I interviewed Crucifix George while he was masking out the brand name of his van with duct tape. After identifying myself and gaining permission to videotape him, I asked if he was simply following the rules, or whether he really believed in them. ‘I really believe in them. You can see all this shit [advertising and brand names] all the time, anyway. […] There's so much creative energy here that you don't need the stuff, the symbols that are imprinted on your brain on a day-to-day basis by marketing people who come out of schools such as the one that you go to. Okay? You can create a whole fucking world like this if people were open” (Kozinets, 2002, 25). It is clear that Crucifix George is tired of the rationality and conformity of mass society and that he is looking for alternative ways of existing, be it only temporary, for one week in August. Even though it can be argued that Burning man constitutes of some anti-market traits and that it is an attempt at community building in separation from the market, it is clear that because it is only a one-week long event, it is more of a temporary experience (although it might a powerful one which may evoke some anti-market values in its participants), rather than a rigid attempt at creating true counter cultural modes of being. Kozinets remarks that mainly middleand upperclass, white people attend the event and so it potentially comes under the category of consumer culture which is driven by a conquest for the same types of individual culture projects as have been mentioned earlier on in this essay. Kozinets even mentions that workers from Silicon Valley are sent by their companies to get “inspired” and to network with members of the creative industries at the festival. There are similar events to burning man in Europe that focus on new ways of contesting the mass market values, such as Fusion Festival in Germany and Boom Festival in Portugal. In The Rebel Sell, Heath and Potter argue, drawing on Frank (1998), that the idea of mainstream culture and counter culture is a false dichotomy. They argue that rather, all consumption culture is driven by that same search for individuality, ‘coolness’ and rebellion against the conformist, orthodox system. In their description of counter movements, they use examples such as 80’s punkers and the hippies of the 60’s and 30 Yacoub Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 25-32 70’s (Heath, Potter, 2006). I would argue that they are right; if we presume that the idea of counter culture is all to do with standing out and being an individual then there is no distinction between consumer and counter culture. The consumer market and the branding of products is targeted towards the masses, which is logical as that is where profit can be made by companies who act on that rationale. When counter cultures are based on wearing and consuming that which is deemed outside the norm, or showcasing individuality and subversiveness in terms of appearance and image, there can be no counteraction to the consumer culture, especially considering the othering of minority groups and the rampant colonialization of cultures that aren’t dominant in mass society. Bell Hooks describes how the dominant cultural elites always have longed for the exotic experience that will bring them back to a romanticized and constructed idea of what primeval community means. She describes this as imperialist nostalgia for primitivism (Hooks, 1992, 369). In conclusion, I would argue that it is evident that lifestyle brands use conceptions of the ‘other’ to sell products by appealing to dominant groups of the mass market longing for the exotified, romanticized, authentic, lifestyles that are depicted as in contestation of the rationalized, modern society. Brands do this by, for example, marketing co-opted cultural markers such as ethnic clothing and through the pinkwashing and use of those sexual practices - which are made ‘other’ - and by appealing to consumer’s identity projects in search for distinction and individuality and longing for freedom from capitalist modes of existence. It is clear that counter culture is sold as individualized lifestyle projects and subsequently that the concept of counter culture needs to be reimagined in terms that are inclusive for all and that don’t exclude and exploit marginalized groups for the pleasure of dominant fractions of society. References Boden, S. J Williams, S. (2002) ‘Consumption and emotion: The romantic ethic revisited. Sociology’. The Journal of the British Sociological Association, 36 (3). Botterill, J. (2007). ‘Cowboys, Outlaws and Artists: The rhetoric of authenticity and contemporary jeans and sneaker advertisements’. Journal of Consumer Culture. Boyle, D. (2004). Authenticity: Brands, fake, spin and the lust for real life. Harper Perennial; New Ed edition. 31 Yacoub Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 25-32 David, C. (2008) ‘Marketing blackness: How advertisers use race to sell products’. Journal of Consumer Culture, Jul 2008; vol. 8: pp. 245-268. Frank, T. (1997) The Conquest of Cool: Business Culture, Counterculture, and the Rise of Hip Consumerism. Chicago: Chicago University Press. Guinon, C. (2004) On being authentic. Routledge. Heath, J. Potter, A. (2006) The Rebel Sell: How the counterculture became consumer culture. Harper Collins Publishers: Canada. Holt, D. (2002) ‘Why do brands cause trouble? A dialectical theory of consumer culture and branding’. Journal of consumer research. Hooks, B. (1992) “Eating the Other: Desire and Resistance”. Black Looks: race and representation. Boston, MA, South End Press. Said, Edward. (1994) Orientalism. New York: Vintage. Advertisements mentioned: Dior. (2000) Gisele Bundchen and Rhea Durham for Dior Spring 2000 [Advertisement] At: http://media3.popsugarassets.com/files/2011/03/09/5/166/1668379/df9408a6fd704919_4d770e458b70.jp g (Accessed 2015) Dior. (2000) Gisele Bundchen and Rhea Durham for Dior Spring 2000 [Advertisement] At: http://s50.radikal.ru/i128/0907/b9/47d2986e55f8.jpg (Accessed 2015) Apple (2014) Pride [Video advertisement] At: https://www.youtube.com/watch?v=xdjAX5A-6qE (Accessed 2015) 32 Burgum Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 33-50 Money in Education, Violence in Occupation: Some Reflections on the ‘Sit-in Senate’ Samuel Burgum University of Warwick Author Biography Sam is a PhD candidate in Sociology at the University of Warwick and has been conducting research with Occupy London since 2012. You can follow Sam on Twitter (@sjburgum) or find other work at warwick.academia.edu/samuelburgum. Acknowledgements Thanks to Jessica Tatchell for asking me to write this article for the Warwick Sociology Journal, as well as Claire Blencowe, Nick Gane and Finn Obriain for their thoughts. Thanks also to students on the modules Sociological Perspectives and Economic Sociology for their informative discussions and debates around these topics. On the 3rd December 2014, as part of a national day of student protest, a group occupied Senate House – an administrative building at the University of Warwick – and staged a ‘sit-in’ as part of the continued effort to resist the rise in tuition fees and the marketisation of the university. In their own words: “After calling a demonstration today to coincide with the national day of action for Free Education called by the National Campaign Against Fees and Cuts, Warwick students are staging a sit in at Senate House. They are protesting at management supporting 16k fees via the Russell group when the student’s democratic opinion is clearly in support of Free Education (as evidenced by SU policy in support of all legal direct action in support of Free Education).”(warwick4freeducation 2014) 33 Burgum Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 33-50 As this statement demonstrates, the purpose of this initial ‘sit-in senate’ – which involved forming a discussion group in the Senate House foyer – was a direct attempt to link money and educational policy to the decline in the university as a public institution. Furthermore, in the very act of using university property to discuss this ‘lost role’ of the university, theirs was also an attempt to prefigure and perform an alternative conception of the space as one of democratic, accessible and free education. This protest, however, soon came to national attention, when police officers sent to evict the students were recorded using disproportionate violence against them: shoving and pulling to the floor, using CS-gas at close range, as well as firing a taser gun “as a visible and audible warning to prevent further disorder” (Channel 4 News 2014). Three students were arrested for attempting to protect their fellow protestors (later released on bail with the provision that they did not return to campus) and the event provoked widespread condemnation and concern from students and staff alike. Concern not only with the clearly horrific and emotional scenes of the violence depicted in the video, but also with the wider political implications of what such police violence suggested. As a statement from the staff and student ‘Campaign For The Public University’ read: “The sensitivity of universities to such protest is in inverse proportion to their willingness to debate the changing idea of the university. Increasingly, universities have sought to criminalize protest on campus while employing marketing techniques to protect their brand.” (publicuniversity.org.uk 2014) The University and College Union (UCU) also wrote: “We call on the university to publicly affirm its commitment to democratic values and the rights of students and staff to protest peacefully against policies and practice with which there is disagreement. The university is our common space and we protest in the strongest terms against the violations that were allowed to take place here yesterday." (warwick4freeducation 2014) And the protestors themselves: 34 Burgum Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 33-50 “We are concerned by the continuing corporate partnerships which are increasingly gaining voice, visibility and control on our campus, whilst at the same time student voices are being silenced.” (warwick4freeducation 2014) What all three argue, therefore, is that the police violence not only represented a particular instance of injustice and direct oppression, but that it could also be linked to: corporate partnerships; the loss of democratic student visibility, voice and control; the loss of the university as a ‘common’ (I’d rather use the term ‘public’) space; the criminalising of protest; the use of marketing techniques to further the ‘Warwick’ brand; tuition fees and elite university networks. Alongside these themes, therefore, I also want to make a direct link between the ‘legitimacy’ of such physical, gaseous and taser-based violence and the hegemony of neoliberal capitalism within the contemporary university. Whilst Coventry Police and the university management sought to justify the police presence and violence by referring to an ‘assault’ on a staff member (which was alleged to have taken place during the occupation) the mystery which has since surrounded this allegation has led many to deny that it ever happened. What’s more, if we juxtapose this allegation with the photographs, videos, reports and eyewitness testimony of those at the event, it suggests that the protest was in fact peaceful (until the police showed up) offering no suggestion that staff were being violently targeted. However, rather than speculate and take a stance on this issue, I instead wish to argue that if we really want to understand the nature of the police violence, we need to think about the context in which it happened. In other words, what I intend to argue here is that the alleged attack on a member of staff, whether true or false, is secondary to the self-legitimation and authority that the police violence was able to claim within the context of the neoliberal university. I begin with a brief summary of what is meant by ‘neoliberalism’ and why the contemporary British university should be recognised as, through-and-through, a neoliberal institution. Despite claims even from within Warwick LTD that neoliberalism is too often used as a ‘catch-all’ term and therefore doesn’t actually exist (Harrison 2015), I instead seek to point towards a specific history and moral framework that informs the distribution of rationality within the university (and society). In the second section, I then focus in on the concept of violence itself through a short literature review of Max Weber, Hannah Arendt and Slavoj Žižek. 35 Burgum Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 33-50 Each, I suggest, has something to offer us in order to understand the ‘legitimacy’ of such violence as Senate House, but I find Žižek to be the most interesting in understanding how such spectacular violence might actually hide the objective systemic violence of everyday life. This leads us to the final section, where I consider the role of occupation as resistance. In a situation where neoliberalism has become ‘hegemonic’ – in that it informs the distribution of positions within the university and is consented to through everyday actions – it is argued that occupation is a useful tactic for making ‘nonsense’ appear. In other words, that the position of the university as a publicly funded and free to attend institution is seen as ‘nonsensical’ is a direct result of neoliberal common sense, so this position must be made to appear against ‘violence’ (sometimes physical but most regularly aesthetic and ideological) which seeks to prevent it from appearing. My overall aim is to provide a slightly different perspective to that which has predominated discussion around the Senate House violence and the proceeding protests and will therefore conclude by taking seriously Žižek’s notion that sometimes ‘doing nothing’ is the most effective form resistance because it entails serious thinking and seeks to avoid pseudo-activity. The Neoliberal University Whilst it is partly accurate to argue that neoliberalism has become a loose, catch-all, critic’s term that is often utilised rhetorically in order to throw together anything that seems unjust or corrupting, it should nevertheless be recognised as having a specific genealogy. This history is one that can be traced back to the late 19th century ‘dispute over method’ in the social sciences (involving Max Weber) and through the Austrian school (including Von Mises) and their attempt to create a post-war government in West Germany which relied on the market for legitimacy; as well as Hayek’s efforts to bring together the Austrian tradition with the Chicago Economics of Friedman at the Walter Lippmann Colloquium and the first meeting of Mont Pelerin Society (see Gane 2014); and right up to Friedman’s government-supported education of South American economists in order to establish neoliberalism after CIA-backed coups; 1970’s stagflation and the decline of Keynesianism, the elections of Reagan then Thatcher, and the collapse of the USSR (see Klein 2008). Its history has been complex, contradictory and inconsistent, yet it is nevertheless a specific thought collective (Mirowski 2013) that has risen from the margins of economic theory to becoming the measure of rationality in society. 36 Burgum Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 33-50 Despite few people explicitly recognising themselves as ‘neoliberals’, therefore, this could just as well be argued as evidence of its normativity rather than its absence (as Žižek puts it, the very idea that we are now post-ideological is “ideology par excellence” (2008a:xiv). Indeed, the ability of neoliberalism to remain internally inconsistent, yet at the same time inform the measure of rationality in contemporary society, is part of its normative efficacy. Its self-contradictions actually allow it to be forever flexible and amenable to the specificities and contingencies of each context, whilst at the same time excluding or dismissing radical alternatives as ‘irrational’ or ‘unreasonable’. Its variety is precisely what makes it powerful as an ideological framework, with the different theories within neoliberalism being used as ‘pick n mix’ for ‘experts’ – policy makers, politicians, boards of directors, business leaders and economists – to inform their decisions and ‘roll out’ or ‘roll back’ the state to suit (Peck 2010). But beyond expertise, neoliberalism can also be seen as informing everyday life through the measure of reasonable thought and action throughout society, and this can be recognised by the prevelance of a few (broad) principles. The first principle – which derives from the ‘liberalism’ in its name – is that the individual is the basis of freedom. What makes it a ‘new’ liberalism, however, is the argument that this individual freedom is something that can only be guaranteed by a free market and not the state. For Hayek (1979), for instance, the market is not only the best way to co-ordinate information needed for people to act freely, but also the 'state' (by which he means centralised planning) can never be trusted to act impartially to this end. In other words, not only is the state simply unable to handle the amount of information needed for the market to function efficiently, but also, Hayek argues, it necessarily means that economic decisions would rely on the arbitrary authority of government rather than the ‘democratic’ and ‘free’ decisions of the people within the market. As such, Hayek has an incredibly paranoid view of the state. Indeed, much of the time in which he was contemplating The Road to Serfdom (published in 1944), he could be found sat on a roof at Cambridge University on fire duty, fearful of the Nazi state appearing over the horizon (see Peck 2010). Subsequently, by seeing the state as only ever a binary of either ‘totalitarian’ or ‘promarket’ – always one or the other – Hayek closes down the possibility of other possibilities of what the state might be. This abuse of reason therefore forces one to 37 Burgum Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 33-50 take a side through a false choice (‘so which are you, Nazi or Neoliberal?!’ (see Žižek 2008b)). This argument for individual, market-based freedom – and a paranoid preoccupation with state power – then leads to a number of pragmatic assertions of what the state can legitimately do. While neoliberal theory is far from consistent on where the limits of intervention are, a vague consensus can nevertheless be found around a second broad principle: that the state ought to guarantee private property (through legal and, if necessary, military institutions) as well as promote competition in all areas of everyday life and culture (Gane 2014:1). As such, although the extent to which the state can legitimately intervene is different depending on the context and situation, there is still a common thread that the market should be considered the measure and foundation of legitimate governance (see Foucault 2008). So long as the state seeks to promote and underpin the market, and so long as it seeks to marketise itself – either through direct privatization, outsourcing contracts, or the creation of ‘pseudomarkets’ – it can be considered a legitimate power. Anything outside of this market logic, including welfare or social security, is considered to be necessarily oppressive. Therefore, by promoting and guaranteeing property and competition, the neoliberal state is seen as acting with legitimate authority and in the interests of the people. It is seen as facilitating the liberty of individual responsibility by allowing aspirations to be realised through competition, with the resulting inevitable inequality ‘justified’ by the supposed ‘equality of fair competition’. Labour must also become competitive and therefore flexible (i.e. insecure and precarious) in order to allow people the opportunity to indulge their self-interested aspirations through personal achievement, success, and entrepreneurship. Therefore, the exploitation of workers, such as through zero-hour contracts, internships, free domestic labour, immigration and human trafficking, is either seen as part of free opportunity (‘this will make you a stronger competitor’) or an example of an exception to how the market should be working (‘if the state stopped intervening with welfare, then competition would work’); but it is never considered to be a structural result of property or competition. Related to this is a third principle of minimising risks and threats to private property and competition via an increase in surveillance, measurement, auditing and biopolitical categorizing of populations and workers. Citizenship becomes a matter of customer service and meeting the needs of opinion polls (including that ‘great 38 Burgum Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 33-50 opinion poll’ known as the general election). Companies carefully manage the efficiency of their operations, monitoring and registering the place and time of their assets and employees (even outside of the workplace by attaching them remotely to their work through ICTs). In order to remain competitive, so the logic goes, the distribution of resources needs to be carefully controlled and adjusted, the fat needs to be trimmed and waste minimised (defining ‘waste’ solely in terms of economic cost). Workers also comply and consent by making themselves competitive entrepreneurs of the self through CVs and social media profiles, remaining flexible to the needs of the market by continually retraining and curating their online persona. This inconsistent, contradictory, utopian theory of neoliberalism is what informs the limits of rationality (and irrationality) for everyday actions and reactions to events. Indeed, even the financial crash was not enough to sway this designation of what counts as legitimate and illegitimate means and ends, or the framing and coordinates of decisions, and this is surely because neoliberalism has inserted itself deeply in everyday values and discourse (Mirowski 2013). For instance, consider the widely held view that the individual is solely responsible for their own situation: their social position and success or failure is thought to be their self-deserved responsibility (‘they always have the opportunity to compete harder’) and as such, the wealthy are there because they ‘deserve it’ and the same with the poor. Scapegoats (such as the 'shirkers and strivers' rhetoric furthered by cultural products like Benefits Street or The Jeremy Kyle Show (Hill forthcoming) are detested for being ‘lazy’ and for ‘taking advantage’ of benefits. These discourses not only act as an ever-present reminder of what can happen if you refuse to ‘play the game’, but also re-demonstrates how neoliberalism works through the unit of the ‘individual’ rather than of collectivity, community, or even ‘the social’1. In sum, the broad principles of individualism (or paranoia), flexibilisation (or precarity), competition (or inequality), efficiency and measurement (or discipline), privatization and outsourcing (or democratic unaccountability), are all 1 It has been pointed out that the status of ‘the social’ for neoliberalism has changed (Davies 2013). From Thatcher’s famous insistence that ‘there is no such thing as society’ and Hayek’s dismissal of the social as ‘a weasel word’ the turn through Blairism and Cameronism has been towards the social as neoliberal enterprise. Hence, in the ‘big society’, the social is recognised but only insofar as it is economically useful for individualized investment via the market. 39 Burgum Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 33-50 fundamentally neoliberal ideals of rational and legitimate power. Furthermore, and importantly for our discussion here, all are to be found within the contemporary university. To take one example, we can see these norms in the way that seminar tutors (on flexible contracts), who are teaching not only because they enjoy it but to make themselves competitive for future employment, are being outsourced as security border staff in the compulsory registering of students for the UK border agency, in order to make sure that those on foreign visas are in fact attending university (the cynical implication being that they might in fact be ‘skivers’ taking advantage of welfare). To take another example, it can be argued that the logic behind raising tuition fees actually has little to do with a lack of money in post-crash Britain in which we must all ‘tighten our belts’. Rather it is a directly ideological assertion that, by loading the cost of university education onto the individual, their freedom of choice, their competitive edge in the job market and the costs of higher education, can all become their own responsibility. It is now their individual prerogative, but, of course, this ‘freedom’ has adverse effects by creating precarity, anxiety, grade inflation, as well as the straight-up fear of taking on that amount of debt (particularly for those who are perhaps less well-off and might have experienced the sheer weight and stigma of debt whilst growing up in their family or community). It also has the effect of measuring the value of university education as something which is market-based as going to university is only considered rational in terms of the market: either you do a vocational degree (as a means to an end) or you know that you are ‘privileged’ enough to afford not to do a vocational degree. What’s more, as Mark Fisher points out, student debt has the effect of pre-incorporating young people into the financial market, meaning that they effectively ‘pay for their own exploitation’ (2009:26) (something which will surely be made worse when the student book is privatised and student debt is made into a profit-incentive). Outside academia itself, of course, the neoliberal university also means flexibility for administrative and support staff. Keeping the campus running, secure, clean, fed, watered, modernised, innovative and expanding is regularly outsourced to private companies who run things ‘efficiently’ (i.e. zero hour contracts and/or low wages). Even provisions for teaching – surely one of the university’s most basic functions – are being outsourced to such companies (such as Unitemps) who have no 40 Burgum Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 33-50 accountability or responsibility towards their ‘employees’ on insecure contracts, only to the contractual relationship with the university to deliver the service efficiently and to remain competitive by keeping costs (such as wages) down. In this section, I have sought to (very briefly) demonstrate that neoliberalism has a specific genealogy, but also highlight its apparently paradoxical nature in being at once hegemonic and inconsistent, normative and contradictory. By sticking to a few key guiding theoretical principles – such as, individual freedom; state skepticism; private property; competition; measurement and efficiency – neoliberalism can be recognised as something that is a coherent totality despite also being contextspecific. In the university, as society, this logic asserts itself through everyday practices and cultural narratives that each time reiterate not only what ‘counts’ as legitimate, rational and reasonable, but at the same time implies that which does not count. Violence in a Neoliberal Context With this context in mind, how might we link the neoliberal university to the violence that occurred at the sit-in senate? In this section, I briefly look at three theorists of violence – Weber, Arendt and Žižek – to make the link between the normative power of neoliberalism and the ‘legitimate’ violence of the Coventry Police. This is by no way an extensive or exclusive literature review or critique – with concepts such as violence, power and legitimacy each having extensive bodies of work behind them – but instead it is hoped that this can indicate some of the ways we can think differently about the context and reasoning behind the Senate House violence. Max Weber sees the state as synonymous with violence. While domination maintains its legitimacy through appeals to tradition, charisma or legal frameworks, when these fail the state is still reliant on violence in the last instance. As such, he defines the state as “a human community that (successfully) claims the monopoly of the legitimate use of physical force within a given territory… the right to use physical force is ascribed to other institutions or to individuals only to the extent to which the state permits it… the state is considered to sole source of the ‘right’ to use violence” (Weber 1946:78). From this definition we can pick out a number of themes in which Weber considers power and violence to be related. Firstly, Weber implies that violence should be thought of only as ‘physical force’. Secondly, that the state, by its 41 Burgum Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 33-50 very definition, is the only thing that can use such physical force legitimately. And finally, that this legitimacy can be outsourced to other institutions – such as the police – as a proxy for the state’s monopoly. Weber is quick to add, however, that although state power is built upon this monopoly in the last instance, this is by no means “the normal or the only means of the state” (1946:78). As such, he also sees violence as an exception to the normal everyday domination of state power and authority, which is instead maintained through tradition, charisma or legal frameworks. In addition, it is interesting that elsewhere Weber adds a neoliberal flavour to this conception of the state, when he links the monopoly of legitimate violence to the authority of the market: “certainly the modern economic order under modern conditions could not continue if its resources were not upheld by the legal compulsion of the state, that is, if its formally ‘legal’ right were not upheld by the threat of force” (Weber 1978:65). The state, then, can legitimately intervene to sustain the market as well, if necessary enforcing this will through violence (or the threat of violence). Weber’s theory offers a good starting point by making a direct connection between violence, legitimacy and the foundations of state power. Ultimately, Coventry Police were only able to ‘legitimately’ use physical violence, CS gas and tasers because they were permitted to do so by the state. However, while this allows us to make such a connection, it seems that by positing it as something that only takes place in ‘the last instance’ there is little discussion of what it is that violence actually does. What’s more, Weber leaves it somewhat self-evident that it is solely the state (and market) that holds this monopoly of legitimacy, and therefore doesn’t seem to consider the notion that other sources of violence might also be able to claim authority. For Hannah Arendt, on the other hand, legitimate violence is not something that is necessarily the property of the state, but something that could be attributed to any instance of violence, albeit retroactively. In other words, the legitimacy and rationality of violent means can only be framed in terms of its ends, as she writes: “violence, being instrumental in nature, is rational to the extent that it is effective in reaching the end which must justify it... and since when we act we never know with any amount of certainty the eventual consequences of what we are doing, violence can remain rational only if it pursues short-term goals” (Arendt 1969:23). Because violence is always instrumental – reliant on technologies such as CS gas and taser 42 Burgum Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 33-50 guns – it is always reliant on establishing short-term ends in order to justify itself and therefore is unable to bring about the power needed for long-term legitimacy. What’s more, this reliance on ends to justify violence leads to a danger that the means might overwhelm these ends and therefore render itself illegitimate. Against Weber, therefore, Arendt argues that power and violence are in fact inversely correlated. Violence undermines the legitimacy of power because it can never be based on longer term ends, whereas “the power structure itself [which] precedes and outlasts all aims… far from being the means to an end, is actually the very condition that enables a group of people to think and act according to means and end” (Arendt 1969:15). Arendt’s theory allows us to reconsider Weber’s state monopoly to think about the potential rationality of extra-state violence and expand the idea that the state cannot solely be based upon violence because this would undermine its own authority. However, her theory is also (purposefully) based on a particularly narrow conception of what violence is. Because Arendt explicitly aims to specify what she means by violence, her focus seems to be on a narrow conception of physical destruction and therefore fails to consider how violence could also be seen as symbolic, systemic and structural. This criticism, however, feels rather strange, seeing as perhaps her best known work Eichmann in Jerusalem (2006) is precisely about the ways in which the ‘banality of evil’ in bureaucratic Nazi systems led to state violence. While Arendt might well have counter-argued that the power of the Nazi state was not exclusively based on violence, and this is true, her insistence to separate violence and power nevertheless does seem to miss some of the ways in which power structures such as these are inherently violent. Against this narrow conception, it is Slavoj Žižek’s contention that violence can be found ‘objectively’ in the structures of contemporary society. He argues, therefore, that although spectacular instances of subjective violence – such as Senate House – understandably cause rage and immediate concern, it is nevertheless important to “learn to step back, to disentangle ourselves from the fascinating lure of this directly visible ‘subjective’ violence, violence performed by a clearly identifiable agent... we need to perceive the contours of the background which generates such outbursts” (2008c:1). The catch of violence, he argues, is that while such spectacular instances rightly make us want to take action, they nevertheless are only considered 43 Burgum Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 33-50 exceptional against a supposed background of non-violence. In other words, because violent events are seen as “a perturbation of the ‘normal’, peaceful state of things” (Žižek 2008c:2), objective, structural, everyday violence gets overlooked. As an aside, I don’t think that it is accurate to argue that this attribution of violence to everyday life, to symbolic social structures and power, is merely rhetorical, dramatising, moralising, "theoretical wordplay" (Collins 2002:25). How else to describe the effects of, for example, institutional racism in harassing and oppressing ethnic communities, unless in terms of systemic violence? Or instances of patriarchy in which cis-men are given more freedom and opportunities than other genders? How else to explain the cultural and political legacies of colonialism in sustaining global exploitation and inequality? How else to define the anxiety, precariousness, mental illness, relative deprivation and poverty caused by economic competition? Or the unequal access to health care and social services experienced by the abjected and excluded ‘internal others’ of nation-states (see Tyler 2013)? These are surely just some instances of objective violence caused or sustained by historical legacies of inequality and exacerbated by neoliberal capitalism. While Weber and Arendt offer us alternative theories of the relationship between power, violence and authority, they also have a particularly narrow definition of what violence is. On the one side, by attributing it to the monopoly of the state, Weber arguably misses how authority and power could potentially be established ‘from below’ and against the state. On the other, by positing violence and power as opposites, Arendt (strangely) neglects to consider the way in which violence exists objectively in everyday life: symbolically, structurally, materially and historically. In viewing violence as something exceptional to the norm, both also overlook how violence and power are legitimated by an underlying pre-distribution of rationality within society, counting some as legitimate and others as illegitimate. Žižek, on the other hand, opens up an important critique of the role that violent spectacles can play in re-asserting and maintaining the objective violence ideological power structures such as neoliberalism. His theory recognises that violence is broader than such spectacular events, problematising our immediate reaction towards it and allowing us to think more carefully about how we might go about effectively resisting it. It is to this idea that we now turn. 44 Burgum Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 33-50 Occupation vs. Pseudo-Activity For Jacques Ranciere, political power is ultimately the distribution and designation of what ‘counts as legitimate’ in society. It is that which partitions what may or may not legitimately appear in a given space, what he calls a ‘distribution of the sensible’ that “consists, before all else, in recalling the obviousness of what there is, or rather of what there is not, and it’s slogan is: ‘Move along! There’s nothing to see here!’ The police is that which says that here, on this street, there’s nothing to see and so nothing to do but move along… it asserts that the space for circulating is nothing but the space of circulation” (Ranciere 2010:37). In other words, power is not simply Weber's monopoly of legitimate violence, nor Arendt's opposite of violence, but the positioning and partitioning of what or who may be considered ‘sensible’ (or not) within a given space. Therefore, while Weber does not tell us what violence actually does, using Ranciere’s theory we can suggest that it is an explicit instance of a police order reasserting the boundary of rationality by moving along ‘that which should not appear here’. In contemporary society, this ideological and hegemonic distribution of what ‘counts’ as rational is neoliberalism. As such, I suggest that what we really see in the altercation between the police and the protestors at Senate House is in fact governance of what can be considered ‘sense’ and ‘non-sense’ in that space. In other words, the police were legitimised to use violence in 'moving along' the sit-in, because they were reasserting the ‘common sense’ designation of that space as one of market logic (avoiding the interruption of the university's profitability or competitiveness). This is a space for circulating money, not the circulation of democratic ideas and discussion. As such, the protestors and the police conflicted in their ideas of how university space should be used, but the difference was that the police already came from a point of legitimacy, whereas the occupiers were alwaysalready coming from the point of 'illegitimate non-sense’. Allow me to demonstrate this tension between the ‘sensible’ and the ‘non-sensible’ (between what is deemed to ‘count’ as a legitimate and rational appearance in university space and what is deemed not to ‘count’) by looking at the ways in which the event was retroactively framed. In the vice-chancellor’s letter that followed (on behalf of the university and emailed to all staff and students) he asserts that the university actually has a “long history of facilitating peaceful protest on the campus 45 Burgum Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 33-50 where close co-operation between those protesting and University colleagues enables us to ensure that views are aired, arguments are made, but also ensure that the day to day experience of those on the campus is able to continue” (emphasis added). Here, then, protest and political expression is actually permitted, so long as it remains within the distribution of the sensible ‘day-to-day' (neoliberal) use and 'experience' of the university (as a producer of competitive workers and innovative ideas for the market). In addition, Thrift's letter also refers once more to that alleged assault on a member of staff, and this accusation was picked up upon in the reply issued by the Rootes occupation on the day after the sit-in senate, where they seek to refute this as a claim of police legitimacy: “Upon reading the Vice Chancellor’s statement on what happened on the 3rd December, Warwick for Free Education would like to make the following corrections to his statement: 1. Security did not inform protestors of the incident, request co-operation or request that any individual be identified. Nor did police. They were silent until they began shoving and grabbing people. 2. Before police started walking in their direction, security told protestors police were there on an unrelated incident. We’re trying to establish whether video captures this lie. 3. No evidence has been brought forward to confirm that there was any assault taking place. The police released the three arrested protestors without any charges.” (warwick4freeducation 2014) The problem here is that, while this counter-framing very well might be true, the protestors nevertheless seek to blame the violence on certain individuals – such as security, police, or the vice-chancellor – rather than looking at the structural context of the neoliberal university that granted this violence legitimacy in the first place. As such, by sticking to this narrow narrative of what caused the police violence (the alleged assault), they remain within the prevailing distribution of what counts as legitimate argument. Put differently, if the university was in fact a public space for democratic discussion, then such violence would surely never have been able to claim legitimacy, but as it was, in a context of the neoliberal university, the police fists, gas 46 Burgum Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 33-50 and tasers stood on the side of what was considered to be a ‘rational use’ of such space. It is this designation of the ‘irrational’ and ‘illegitimate’ use of university property that needs to be considered. Indeed, that using it for the democratic expression of grievances is not considered legitimate, is further illustrated by the outcome of a meeting that the Rootes occupation had with university management: “The academic registrar affirmed that the only options open to us to express our opinions are via the ‘democratic’ procedures linked with the SU, and that occupations are both invalid and pointless methods of protest” (warwick4freeducation 2014) The use of the space for protest through occupation is pre-positioned as illegitimate because it challenges the overall designation of what counts as a sensible use of and appearance in that space. But this measure of illegitimacy and sensibility is one that is only in line with the view that the university is and should be a neoliberal institution, managed along market principles. This distribution of the sensible, therefore, is what gives the police legitimacy to act violently and with impunity, whilst simultaneously positioning those who wish to resist this university model as an always-already irrational and illegitimate appearance. The alternatives of what the university could be are limited by the prevailing structure and, as such, this is an aprioi foreclosure of the possibility of possibility. This is why, I argue, that occupation is simultaneously a potentially useful tool for forcing such ‘non-sense’ to appear in the context of neoliberal hegemony, but also an extremely risky thing for activists to take part in. On the one hand, not only do ‘illegitimate’ occupiers risk physical violence or social disapproval and exclusion, but also, within a neoliberal market, they risk their own competitiveness, future and happiness by putting the completion of their degree on the line (no wonder so many of student-activists chose to hide their faces). The problem with resisting neoliberalism, in a society where it is hegemonic, is that you have to “play or get played” (Burrows 2012:369) and this increases the risks of political or democratic expression. On the other hand, much more than a march, picket, strike or internet campaign, the occupation of space is effective because it asserts a different – radically alternative and therefore 'impossible' – conception of what the space should 47 Burgum Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 33-50 be through its very longevity and commitment. In this sense, the permanence of occupation can actually become performative. What’s more, the discussions which take place within an occupation entail a commitment on behalf of activists to thought, giving space and time to considering questions such as: how is the police violence legitimised by the neoliberal university? What are the connections? What is the best way to resist this? Indeed, as Žižek warns, the tendency of activists to ‘act now’ rather than take time to reflect is potentially counter-productive because it risks ‘pseudo-activity’ (simply reacting in order to cover up a lack of thinking). This leads him to conclude, in trademark controversial terms, that “the overpowering horror of violence acts and empathy with the victims inexorable function as a lure which prevents us from thinking… a dispassionate conceptual development of the typology of violence must by definition ignore its traumatic impact” quickly adding “yet there is a sense in which the cold analysis of violence somehow reproduces and participates in its horror” (Žižek 2008c:3). In other words, Žižek invites us to resist the temptation of immediate (re)actions to such horrific events, because “there is a fundamental anti-theoretical edge to these urgent injunctions… ‘there is no time to reflect: we have to act now!’” (2008c:6) and instead allow the time for critical reflection and discussion. Indeed, rather than speeding up in the face of such events, perhaps it is best to ‘slow down’ (see Gane 2006) and think. Occupation, I suggest, has the potential to facilitate this. Conclusion At the #copsoffcampus rally the next day I was struck by the audience reaction to a letter which had been sent by one of the students arrested at the sit-in senate. Banned from campus, this student’s letter was read aloud to the huge crowd that had gathered outside Senate House. It ended: “The revolution is here; it is between us. We must fight together, but we must also heal together. So the focal point of this demo is not simply that cops are scum, but rather that they will not break us. They will not break our movements, and they will not break our love for one another. Love and solidarity." (warwick4freeducation 2014) At these words, those immediately in front of the speakers began waving their banners and cheering, turning into the chant: ‘Cops off Campus!’ Cops off campus!’ 48 Burgum Warwick Sociology Journal, April 2015 Vol 1, Issue 4, pp 33-50 and those around this core turned to one another to make comments or politely applauded. But on the far edges, where other ‘non-activist’ students were walking past and had stopped to see what was going on, the reaction was different and a number of them began giggling and snorting… ‘what nonsense!’ More than police violence, it is here – at the edges of what ‘counts’ as sensible, rational, legitimate appearance – where political violence is actually taking place and power is being reasserted. This more subtle ‘policing’ maintains the borders of possibility, of what does and does not ‘count’, and it is therefore complicit not only with the objective violence of the prevailing order, but is also indirectly part of that distribution which legitimised Senate House as a space for police violence. Of course, sometimes taking action, such as organising a march or petition against police brutality, is completely necessary (and I am definitely not trying to argue here that the impressive #copsoffcampus protests the next day should somehow not have taken place). But this action must not be allowed to prevent a more thorough reflection of such objective violence that takes place everyday and forms the supposedly apolitical ‘zero-point’ of spectacular violence. Indeed, sometimes taking action can cover up an unwillingness to think via an expression of reactive rage before simply returning to the neoliberal status quo. 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