Book Review: Benjamin Schwartz – In Search Of Wealth And Power

In Search of Wealth and Power by Benjamin Schwartz, published in 1964. Rating: 4/5.

in-search-of-wealth-and-power-benjamin-schwartz

In Search of Wealth and Power is a very dense but richly rewarding tome by Benjamin Schwartz, a noted China scholar. He focuses on the life of the translator Yan Fu to illustrate the culture clashes that arose when traditional Chinese civilization came into contact with Western philosophies.

Yan Fu was a translator and thinker who was one of the first Chinese to engage with Western thought at a deep level. He rejected contemporary thinkers like Zhang Zhidong, who aimed to integrate Western technics onto Chinese cultural foundations – not for him was the slogan “Chinese learning for fundamental principles and Western learning for practical application.” Nor was he a Marxist, to consider society as a mere superstructure to underlying economic realities. Instead, Yan Fu emphasized that if anything there was “more materialism (in the ethical sense)” among Chinese than in the West, whose own material foundations were built on innovative legal, political, and spiritual foundations. In a nutshell, the purpose of Yan Fu’s lifework was to foster the evolutionary growth of these Western qualities, many of them quite intangible, so as to “enrich the state and strengthen the army.” Yet in so doing this through his translations and commentary he ran into many paradoxes, and grew disillusioned with Western thought in the last decade of his life – as did admittedly many Western intellectuals as well. At the end he (re)turned to a form of Taoist mysticism.

At the start it is important to note that Yan Fu was intimately acquainted with all major strands of the Chinese philosophical tradition. Confucianism had been the bedrock of the Chinese state since the Qin dynasty. It stressed the importance of filial piety, of the ruler setting a virtuous example of the people, and of keeping laws and regulations light; however, Yan Fu and numerous other members of the Chinese intelligentsia during that time were coming to see it as a regressive influence keeping China backward. For his own part Yan Fu has little patience with it, beyond keeping its few good parts – mostly those to do with family organization – and extending it to the masses, the armies and factories (much as he perceived Christianity to have laid the groundwork for English public spirit despite its purported theological errors).

The other strand that he drew on is Legalism, a far more practical doctrine that  contained the Chinese version of balance of power theory and Machievallian ideas about the state. Furthermore, Schwartz writes, “while the immediate aims of the Legalists may be narrowly fiscal, the germ of a notion of economic development is latent within this mode of thought.”

Finally, there was Taoism; although the least practical of the three, Yan Fu was extremely influenced by it. In its attribution of a deep and incomprehensible driving force he found deep parallels with the monist Western philosophers, as well as a metaphysical lattice to hold together the evolutionary process and the “ten thousand things”. It did not proscribe a frozen feudal order like old-school Confucianism, and it was the polar opposite of the crass materialism of Legalism. As such, Yan Fu considered it the ultimate anchor on which Western philosophical concepts could be moored, even going so far as to argue proto-democratic tendencies in the works of Zhuangzi.

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The Radical Ideologies Of The 21st Century

radical-ideologiesThough I’ve written a lot on technological, energy, and geopolitical futures, this has largely been to the neglect of ideology. Part of the reason is that making accurate predictions on this topic is far harder, because of the inherent intangibility of belief systems. Nonetheless, it is necessary, because of their overwhelming influence on the historical process; for instance, the 20th century would have been totally different had Communism, fascism, and Islamism failed to overtake major states such as Russia, Germany, or Iran.

Furthermore, I do not think it is an impossible endeavor. While forecasting specifics such as Stalinist central planning or the mystical millenarianism of Nazism would have been impossible for an observer in 1911, entertaining the possibility of the emergence of such regimes was entirely possible by drawing on the main strands of contemporary intellectual thought on new types of politics and society, which at the time resolved around Marxism, utopian socialism, Social Darwinism, and futurism.

What trends would a similar exercise reveal for today? I would argue that the equivalent themes, largely marginalized now but with the potential for explosive growth under the right conditions of socio-political stress, include: the Green movement (ranging the gamut from local sustainability activists to authoritarian ecosocialists); the technoutopians (include the open-source movement, Pirates, technological singularitarians, Wikileaks activists); and a revival of fascist, far-right thought in the guise of ethnic chauvinism and various Third Position ideologies. Bearing in mind the profound instability of today’s world order, we may be seeing some of these ideologies coming into political fruition sooner rather than later.

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Poker And Capitalism

waterloo“[Poker] exemplifies the worst aspects of capitalism that have made [the United States] so great.” Just consider the array of similarities:

1. Though there are rules and etiquette loosely associated with it, otherwise everything goes: in other words, its fundamental nature is profoundly amoral. (This is contrary to the ideologues who claim that capitalism is either A) “moral” / God-sanctioned / Rand-sanctioned / etc or B) “immoral” / “imperialist” / etc; newsflash, it’s NEITHER).

2. Players governed by emotions that cloud out calculation lose out in the long run. Blocking out emotions is harder than it sounds, because as in real economies, even able and rational poker players are sometimes overcome by the “animal spirits” of the moment.

3. It is important to maintain a good reputation: for instance, if you become known for bluffing too much (or not bluffing at all), you are going to get called out on it and lose money. Under advanced capitalism every major corporation maintains a PR department.

4. The majority of people in many capitalist societies such as the US believe that they are good enough to get well ahead, whereas in practice that is rarely the case (e.g. median household incomes have been more or less stagnant since 1973). Likewise in poker, most players believe they’re really good at it – ask around and you’ll find that 75%+ of people who play poker say they win on average, despite the mathematical impossibility – but in real life, only <10% end up corralling most of the gains.

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Freedom, Welfare, and the Future

The welfare state, or what we conceive of as such today, is a relatively recent phenomenon. Although pre-modern states did perform some pro-welfare functions such as regulating prices and wages, maintaining workhouses for the poor and even a limited form of targeted social support[1], this spending was framed not in terms of the state’s fulfillment of defined obligations to its citizens, but as “wholly-discretionary state charity”. The state’s only incentive to do this, admittedly a powerful one, was to buy off revolt and preserve community cohesion; otherwise, these extremely hierarchical societies harbored no ethical concerns about empowering the individual or ensuring equality of opportunity. This meant that the prime means of social support remained one’s family and clan, friends, and local community institutions like the Church. The modern definition of a welfare state, such as the one provided by Robert Goodin – 1) it a) “intervenes in a market economy b) to meet certain of people’s basic needs c) through relatively direct means” and 2) is “a system of compulsory, collective, and largely non-discretionary welfare provision”[2] – has its early antecedents in Bismarck’s social insurance reforms (1889), the genesis of Swedish socialism in the 1930’s, and the US introduction of social security measures in the New Deal to mitigate the effects of the Great Depression.

Drawing on Goodin’s work, let us clarify the definition of the democratic welfare state. First, welfare states are explicitly market-based (ranging the gamut from America’s relative laissez-faire to Belarus’ “market socialism”) – according to Marshall, it “did not reject the capitalist market economy, but held that there were some elements in a civilized life which ranked above it and must be achieved by curbing or suppressing the market”[3]. Second, it does not (necessarily) aim for radical economic or social transformations; its goals are more modest – “the characteristically welfare statist approach is to opt for readjusting final distributions [primarily to relieve those in the most distress through direct provision of basic needs like food, shelter, etc], rather than altering the pattern of property rights in productive resources that gave rise to undesirable distributions in the first place”[4]. Third, welfare is enshrined in law and viewed as a universal civil right for those deserving of it, in contrast to private charities and the “public charity” embodied in the English Poor Laws (their aid being viewed as gifts and humiliating to have to accept).

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Russia’s Sisyphean Loop

Anatoly Karlin @ www.DaRussophile.com
PDF version | DOC version

Russia’s Sisyphean Loop

The Eternal Return to the Future?

In this article I attempt to explain Russia’s historical cycles of failed Westernization and to project its future socio-political trajectory. First, I note the nature of and linkages between Russia’s geography, cultural traditions and imperial cycles. Second, using a ‘Belief Matrix’ model and drawing on historical observations, I accumulate evidence that Russia is caught in a ‘Sisyphean Loop’ in which all its attempts to Westernize – for a panoply of economic, cultural, and political reasons – merely end returning it to its imperial Eurasian past-and-future. In this century, there are three possible ‘steady state’ outcomes: either the Loop will continue as Russia returns to authoritarian stagnation or even succumbs to ‘totalitarian reversion’, or it will break – resulting in Russia’s entwinement within a ‘liberty cycle’ in which it finally manages to anchor liberal values onto its population.

I. The Curse of Geography

Russia’s physical geography can be characterized in three words – big, cold, and flat. This unique combination has left an indelible mark on the national character and the nature of the Russian state that cannot be ignored in any work on its political economy[1]. Let’s consider the deleterious effects of each of them in turn.

The early Rus’ state emerged in the coldest region to ever produce a settled population, a problem compounded by its post-16th century eastern expansion into Eurasia. Growing seasons are short, late spring droughts are recurrent and grain yields are low. This made Russian agriculture outside the southern Black Earth regions, where the cold is mitigated by exception soil fertility, unproductive and barely sufficient for population subsistence. Peasants throughout the world have traditionally viewed merchants with suspicion, since capitalism’s profit motive undermined the egalitarian village social relations and support mechanisms[2] necessary to guarantee community survival in a Malthusian world predating modern economic growth. The especially precarious nature of Russian peasant life further amplified these psychological attributes, making Russia deeply averse to the development of capitalist enterprise, with its emphasis on individual initiative and steady capital accumulation[3].

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