Book Review: L'esprit de Philadelphie: La justice social face au marché total



The following is a review of the book:
 
L'esprit de Philadelphie: La justice social face au marché total
The spirit of Philadelphia: social justice vs. the total market

Alain Supiot
Seuil 2010
ISBN 978-2-02-100776-3

The spirit of Philadelphia: social justice vs. the total market

The ILO 1944 Declaration of Philadelphia[i] marked a historical moment for the international community enshrining the lessons learned after long years of wars and aiming to establish lasting peace and justice for all human kind, a pioneer text at its time that elevated social justice to be the foundation of the international legal order. Over half a century later, Alain Supiot looks at the declaration in light of the ultra-liberal ideology dominating our world today; he argues that the declaration is still relevant today more than ever and demonstrates how we are drifting away from the hard lessons learned in the first half of the 20th century under illusory promises of free markets, unjustifiable over-dependence on economic and financial indicators and falling into what he calls normative Darwinism.  


The book starts by repainting the history of the declaration, the years of war, the exploitation of working class as well as the less developed nations, the resurfacing of the “social question” of the nineteenth century again and the quest for justice and peace. Those were the times when FDR gave his state of the union speech of the four freedoms[ii], when the Atlantic Charter was drafted and the Universal Declaration of Human Rights[iii]. The political changes of that moment define the spirit of Philadelphia which reaffirms the will of the world powers to build together an order of justice and learn from the lessons of the barbaric experience of the war, to establish law as the instrument to protect the human being, to cherish the human dignity, its freedom and security equally and to refuse any attempt to diminish freedom on the account of security or vise versa. The same spirit also refuses to subordinate social justice to economic organization or financial claims. According to Supiot, the real innovation of the Declaration of Philadelphia is building on the idea of social justice as a mean to achieve long lasting peace in the ILO Constitution of 1919 first by defining what social justice is: “all human beings, irrespective of race, creed or sex, have the right to pursue both their material well-being and their spiritual development in conditions of freedom and dignity, of economic security and equal opportunity” (Art. II a) and second by placing the attainment of social justice as central in any national or international policy or measure especially of economic or financial nature (Art. II c), hence, the Declaration sees economy and finance as means in the service of the human dignity and not aims in themselves.

Supiot then presents the departure from the declaration since the 1980s in favor of an ultra-liberal ideology that places the free market above social justice. He argues that this departure is intentional and calls it a counter-revolution led by the political powers of the eighties mainly the United States and United Kingdom inspired by the work of Friedrich Hayek with the aim of deconstructing the welfare state. He highlights how the principles of neo- and ultra-liberalism are opposed to the Declaration of Philadelphia in the way they perceive human injustice as a motive for better productivity. This ideology gained support in the nineties by the European Commission too despite its long history of faithfulness to a social Europe and to the declaration. The expansion of the Union in the nineties turned into a wasted opportunity to present a social model as an alternative. The ex-communist countries further elaborated by pushing the concept of privatization of the state, replacing rule of law by rule by law, legalizing the neo-liberal policies and creating a dictatorship of markets. The reach of the “counter-revolution” extended beyond national laws to form an international order imposing their ideology as the only credible, almost divine, one: the total market.

The book describes total market as a world revolving around economic growth where environment, humans and laws are simply merchandises. The rupture with the Declaration of Philadelphia is translated in pursing economic growth as an end of itself and not for the improvement of humans and the protection of their security and dignity. Competition is no longer based on the law, rather law's purpose has become to protect competition and free trade. In an open world of the total market, laws are in competition among one another to better serve free trade, and laws with social aims are losing that competition to ones that better serve the needs of investors and financial markets; what is referred to as normative Darwinism. This quest for economic growth and free trade is combined by a fierce competition for improving economic indicators that are often disconnected from the individuals' lives and from the specific conditions of many non-developed nations, this is translated in turn in a race to the bottom in norms and standards addressing inequalities and workers' lives. The free market has, according to Supiot, fallen into the trap of self-reference by imposing its ideology as the only correct one, suggesting indicators that serve this ideology and evaluate the success of this ideology based on those indicators. This is leading to efforts, laws and policies focusing on improving those indicators and not addressing the actual economic or social situations.

Global economic crisis are one manifestation of the weakness of the neo-liberal ideology in facing the realities of markets. However, neo-liberal enthusiasts claim that markets tend to regulate themselves and hence, they refuse to see the issue as a need for political and legal engagement to restore the order by redefining goals and means and distinguishing between real needs and economic and financial organization. Supiot calls for “reform” under the ultra-liberal dogma by recourse to the five senses; the sense of limits, of measure, of action, of responsibility and of solidarity:

1. With the quasi-disappearance of the notion of national market to the favor of transnational and global market, the notion of national legal order governing the market is also disappearing and the ultra-liberal international order is taking over that role. The world is managed as a collective of quantifiable resources[iv]. No distinguish in the economic sphere is recognized other than monetary ones, making any social, cultural or human characteristics irrelevant. The abolish of restrains on the movement of capital is accompanied with restrictions on the movement of people which results into many being trapped in situations of misery in the service of the total market. The state no longer interferes to fix such unjust situations and a new form of feudal system is born based on the unequal powers in the so called freedom of contract model. According to Supiot, the sense of limit can help building international as well as national legal and institutional systems that push competition among companies and not among legal systems which in turn will lead to re-defining appropriate limits for competition, and put global trade in the service of social justice.

2. In the sense of measure Supiot further elaborates the idea that a need to focus on the human shall be the essence of any system of evaluation of economic performance and explains that the total market indicators are not necessarily measuring the performance of the legal system. He suggests that the unit of measurement of any performance evaluation shall be related to advancement of social justice globally while attention shall be made to the local conditions of different countries when defining norms and human development indicators.

3. Free markets have liberated transnational enterprises from the national and local legal systems while the freedom of association and the right to strike are still imprisoned within national systems. This is creating a handicap in the traditional labour law system that is based on the three pillars of organization, action and negotiation. The unequal negotiation between local actors with limited reach of actions and the transnational companies is restricting the advancement of labour laws and again reducing humans to a figure and a resource in the total market. Until the ability of states to act is restored, the deficiency affecting social and labour rights will remain.

4. The mere existence of Corporate Social Responsibility codes of conduct is just a symptom of the total market in which burden of responsibility for action is vague, Supiot argues, however, that this burden is not as complex as claimed by neo-liberal. He cites the example of patent and intellectual propriety that total market succeeded in protecting and made possible the identification of the real responsible for production despite the complex value chain by enforcing laws that oblige companies to define where a product is produced. The same can be achieved in protecting social and fundamental labour rights by identifying responsibility along the chain, the only difference, according to the book, is that  social rights and human beings are not the aim of  ultra-liberalism, while trade and competition protection are.

5. Supiot considers that total market is promoting less solidarity for letting companies breach their duty of respecting workers dignity or the environment. He emphasizes that freedom of others shall not diminish the responsibility of each individual, that solidarity and dignity are legal principles from which rights and duties flow. Letting someone, be it physical or moral person, escape the duty of solidarity shall be considered a breach of human rights. Again, this lack of solidarity is a byproduct of putting legal systems in competition to protect total market values instead of protecting the individual.

Supiot's book is a call to revive the spirit of Philadelphia lost to the total market today. The first step is to rearrange the means and the goals and giving social rights and social justice their central place in the national and international legal systems. This in turn shall give the legal systems their vigor instead of being tools competing on how best to serve financial markets and ultra-liberal indicators.


[i]     Text of the declaration can be found at http://www.ilocarib.org.tt/projects/cariblex/conventions_23.shtml last visited on June 9th 2014
[ii]    President Franklin Roosevelt state of the union speech of 1941: the four freedoms are freedom of speech, freedom of worship, freedom from want and freedom from fear
[iii]   Text of the declaration at http://www.un.org/en/documents/udhr/ last visited on June 9th 2014
[iv]   Supiot 2010 "Dans un monde géré comme un ensable de ressources quantifiable, l’égalité ne peut en effet être pensée autrement que comme une indifférenciation, et la différence comme une discrimination." 

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