Economic Juries — whatever next?

Daniel McFadden of UC Berkley produced a paper in 2011 which is mostly about what he calls Economic Juries. This is just like the German CJs that we have heard about previously from Antoine Vergne which were tasked with deciding whether to go ahead with new public infrastructure projects. So it’s interesting to see economists picking up on this idea.

McFadden’s paper has the anodyne title The Human Side of Mechanism Design, and you can read the paper on my website www.conallboyle.com

I found it the paper his website, but academics could obtain it from Athens. McFadden is one of the better guys, an economist who understands a bit about real humans.

The main ‘mechanism’ he investigates is the use of a jury to decide issues of public spending. Apart from a passing reference to deciding if a new park should be established at Boulder, Colorado, no actual examples of Economic Juries are given. But the theoretical reasons for using an EJ, they methods that could be used to inform them and elicit their real opinions are explored — in other words can a jury work? can it decide correctly? can it evade the human failings of bias, framing, short-termism etc. etc.?

Warning! This paper is a bit wonkish (to use  Krugman’s phrase).

So CJs (or EJs to use McFadden’s term): They would be an alternative to the democratic, elected representatives deciding. Would EJs work better? At what? Discovering the General Will perhaps???

The most basic democratic right? Beneficial ownership of natural resources

News about ‘Democracy’ from Iceland

If Iceland demonstrates the possibilities of direct democracy, recent months have also exposed its limitations. A row still rages over the country’s constitution, which was created after its economic collapse. When 950 Icelanders, randomly chosen from the national register, gathered for one day in 2010 to decide its founding principles it was hailed as the world’s first “crowd-sourced” constitution. Continue reading

Mencken: The two kinds of democracy

H.L. Mencken‘s 1927 book Notes on Democracy is an interesting document. On the one hand it is a candid expression of a proud elitist worldview. Mencken spends considerable space explicitly denigrating the average person. In short:

There are men who are naturally intelligent and can learn, and there are men who are naturally stupid and cannot. (p. 17)

Such views cannot be expressed in polite society today, and although it is pretty clear that Mencken is aware that his stridency is politically incorrect, it is also pretty clear that he is expressing ideas that were acceptable, even conventional wisdom, in elite circles of his time.

On the other hand, Mencken devotes much attention to the problems of the electoral process as well (which he identifies with democracy). His anti-democratic attitude allows him to criticize the electoral system in a way that those with commitments either to the existing system or to democracy usually cannot afford. As Mencken damns voters for being stupid and electoral politicians for being scoundrels, Mencken points at several problematic fundamental characteristics of the system, belying his main thrust which focuses on personal characteristics. Here, for example, is the principle of distinction:

Democratic man is stupid, but he is not so stupid that he does not see the government as a group of men devoted to his exploitation that is, as a group external to his own group, and with antagonistic interests. (p. 197)

Mencken’s treatment of “direct democracy” – the standard remedy for the problems of the electoral system – is rather insightful: Continue reading

Beyond the principle of distinction

The primary negative effect of the electoral system is the obverse of its ostensible function. This effect is what Bernard Manin called “the principle of distinction” – the delegation of political power to people whose situation and outlook is significantly different from those of the population at large. As a result of this difference, the political elite serves interests that are different from, and often antithetical to, those of the average voter.

However, the electoral system is often presented by academic advocates and by electoral activists and politicians as providing a value to society above and beyond its function for selecting government officials. It supposedly encourages meaningful popular participation in government through voting, informed discussion, organized activism in electoral campaigns and awareness of the importance of compromise and coalition building. In fact, the electoral system encourages none of those patterns – on the contrary: it is antithetical to them. This is due to several characteristics of the electoral system that are not consequences of the principle of distinction.

  1. Politics as competition The electoral system is a mechanism in which groups compete for power. Allocation of power through competition has several related effects:
    • When political power is gained through competition, its attainment comes to be seen, primarily by the winners themselves but by others as well, as a reward. Corruption – use of the hard won political power to further the interests of the winners and their associates – then becomes a natural consequence of the achievement.
    • Continue reading

Paradise Lost, Paradise Found: The True Meaning of Democracy, by Arthur D. Robbins (Review)

Take me down to the paradise city
Where the grass is green and the girls are pretty
Oh won’t you please take me home
Guns ‘N Roses

This fascinating book is unique amongst radical theories of democracy in that it’s written by a clinical psychologist with a particular interest in psychopathology – as such his primary emphasis is on the (two-way) relationship between political systems and character. Whereas most books focus on the institutional level, Dr. Robbins constantly reminds us that entities like ‘governments’ and ‘nations’ are merely abstractions, by adding (in parentheses) ‘person or persons in power’ every time he uses the word ‘government’. History is ‘nothing but a vast battlefield after the battle is over – a mountain of the corpses of men, women, and children from around the world and across time who have been slaughtered to satisfy the warriors in their quest for blood and glory’ (p.229). Political leaders are subjected to psychoanalytic scrutiny and are (with the exception of a small number of Athenian statesmen) mostly diagnosed in terms of psychopathy – not just the obvious cases (Hitler, Stalin, Mao, Pol Pot) or even the usual suspects (Alexander of Macedon, Genghis Kahn, Napoleon), but also less extreme examples like George Washington, Alexander Hamilton, Theodore Roosevelt and Winston Churchill. Dr. Robbins explains the development of psychopathy in terms of dysfunctional childrearing and early maternal relationships, so history is, in effect, reduced to the psychiatrist’s couch. Strangely enough (given his idolisation of Athenian democracy) this explanation is derived from Greek literature, forcing him to conclude that the dysfunctional relationship between mother and son is limited to the Greek aristocracy (p.303). Given that such psychopathic individuals – ‘a special subset of men’ – are fundamentally different from ‘us’ (p.309), then the goal of democracy is not so much ‘power to the people’ as making sure that the bad guys don’t get hold of the reins. Rotation of office (and/or mass participation in government) is not so that we may all, as Aristotle put it, ‘rule and be ruled in turn’ but simply to reduce the likelihood of handing power to a psychopath.

Continue reading

Beyond the principle of distinction

The primary negative effect of the electoral system is the obverse of its ostensible function. This effect is what Bernard Manin called “the principle of distinction” – the delegation of political power to people whose situation and outlook is significantly different from those of the population at large. As a result of this difference, the political elite serves interests that are different from, and often antithetical to, those of the average voter.

However, the electoral system is often presented by academic advocates and by electoral activists and politicians as providing a value to society above and beyond its function for selecting government officials. It supposedly encourages meaningful popular participation in government through voting, informed discussion, organized activism in electoral campaigns and awareness of the importance of compromise and coalition building. In fact, the electoral system encourages none of those patterns – on the contrary: it is antithetical to them. This is due to several characteristics of the electoral system that do not follow from the principle of distinction.

1. Politics as competition The electoral system is a mechanism in which groups compete for power. Allocation of power through competition has several related effects:
Continue reading

Political Studies Association: “The Party’s Over”

The theme for the (UK) 2013 PSA conference (Cardiff, 25-27 March) is The Party’s Over. Oliver Dowlen is organising a sortition panel under the auspices of the PSA specialist group on deliberative and participatory democracy. The deadline is tight (abstracts need to go to Stephen Elstub, the group convenor by October 5), so anyone interested please contact ollydowlen@yahoo.com

Paradise Lost, Paradise Regained: The True Meaning of Democracy

Has anyone come across this new book by Arthur Robbins:

At a time when people around the world are rising up to demand self-determination and Americans are locked in debate about the role of government in society, PARADISE LOST, PARADISE REGAINED: The True Meaning of Democracy offers a fresh look at what democratic governance really means.

The story begins in ancient Athens and then turns to Rome and the Italian City States. Democracy in the United States, prior to the signing of the Constitution, is explored in detail. There is a section devoted to the effects of war on emergent democracy in the Middle Ages and in France at the time of the Revolution. The book concludes with a review of recent experiments in democracy, especially in India and Latin America.

Early Americans have much to teach us. We study some of the essays, letters, and articles written by the Anti-Federalists, those who were opposed to ratification of the Constitution. They were articulate and impassioned on the subject of democracy. They understood the nature of political power and of those who would abuse it.

Continue reading

“Why Occupy Fizzled?”

September 17 was marked as the anniversary of the Occupy Wall Street movement. While the dismissal of the movement as a spent force by its opponents including corporate mass media is only to be expected, it seems that the feeling that this movement has reached the limits of what can be achieved with its past tactics is shared by sympathetic observers.

Matt Taylor at The Daily Beast offers an analysis that is to a large extent an establishment point-of-view, but makes some valid points as well:

As Occupy Wall Street protesters geared up to mark their first anniversary in Manhattan on Monday, they found themselves operating almost alone, without much of the outside support from celebritieslabor unions, and other progressive groups and leaders that had helped to create a palpable sense of momentum last fall.

[…]

But it would appear that, some tepid local union supporters in the city notwithstanding, the broader progressive coalition—including organized labor—is sitting this one [the anniversary] out, having seen the Occupy movement descend into internal squabbling in recent months over how, and whether, to engage the political system directly.

Continue reading

Thomas Fleming: Down With Democracy!

Thomas Fleming, editor of the American monthly Chronicles: a Magazine of American Culture, author of several books on ethics (The Morality of Everyday Life) and politics (Socialism, The Politics of Human Nature), contributor to newspapers, magazines, and academic journals on both sides of the Atlantic, and formerly a professor of Greek and Latin at several universities, is again proposing following the Athenian example.

It turns out that the American political system had been in reasonably good shape until Martin Van Buren copied the party system from the UK, and in doing so put the US government on the path of corruption. The final nail in the coffin, Fleming asserts, was the institution of primaries, replacing the corrupt but still useful party leaders as the determinants of party candidates.

Taking a break in dispensing dubious historical synopses, Fleming moves to the present:

If this is democracy, I am ready to try an alternative.  Whenever anyone dares to criticize democracy, he is inevitably slapped down with Churchill’s witticism that democracy is the worst form of government except for all those others that have been tried.  What neither Churchill nor his millions of quoting admirers have ever explained is what they mean by democracy. Indeed, after decades of studying political theory–and discussing such matters with the learned and the wise–I still have no clue as to what people mean when they use the word, other than their opinion that democracy is decidedly a good thing.

Cheerleaders for democracy, the American way of life, and my sweet old etcetera tell us that the principles of one man/one vote and representative government are the essence of our democratic liberty. Interestingly, the people who are credited with inventing the institution and certainly gave us the word–I mean of course the Greeks–did not regard elections as particularly democratic.

Continue reading