The University and the secular crisis

In retrospect Steve Smith’s article linked in a previous posting on the University and the rule of money is important in highlighting that the UK Government’s austerity agenda will tighten considerably in the aftermath of the next General Election in 2015. He is clear that the squeeze on incomes for universities will give little room for manoeuvre, and one outcome is that the sector as a whole risks further stratification and restructuring, as institutions operating as competing capitals look for securitisation or financialisation coupled to attacks on labour rights and efficiency drives.

It is salutary to remember that the idea of the University and issues of funding are situated within the politics of austerity and the fiscal realities of an ideological attack on the sector. It should be noted that this is a deeply political attack that has seen resistance from groups of students and public sector workers and trades unions, but limited critique from the sector’s leaders. It is only Million+ that has developed an on-going critique based on the Government’s economic projections. Thus, in March 2013, the CEO of Million+ wrote:

Once the loss to the Treasury of reduced participation (which in turn leads to reduced tax receipts) and the inflationary impact of higher tuition fees are taken into account, the short-term savings will be outweighed almost six and a half times by the long-term costs of the new system.

In developing a meaningful critique, it is important to place the context of University funding, and the concomitant restructuring of the idea of the University for entrepreneurship and employability, in the context of the UK as a de-developing economy. Speaking at the LSE in September 2012, Larry Elliott and Dan Atkinson stated their thesis that that the historical trend for the UK economy in the last century has been managed decline arrested by quick fixes like access to North Sea oil revenues and the stimulus of the deregulated City. Elliott and Atkinson argue that the UK is in a long decline, signalled now by an economy that is 4% smaller than it was when the financial crisis hit, and which is emerging from recession slower than it had during the Great Depression. They note that: the cost of the economic downturn is in excess of £200bn; real incomes are down, with the IFS stating that it will be 2016/17 before incomes reach 2004 levels and with an increase in levels of poverty; banking is “big, bust and corrupt”; successive rounds of Quantitative Easing and purchasing of gilts has underpinned much higher real inflation than that reported in the CPI, with no respite for savers; and the Treasury has had to borrow in excess of 550bn thereby doubling the debt.

For Elliott and Atkinson, the macro-economic context, inside which higher education is framed, is one of blunder, fudge and self-delusion. Revenues from the UK economy’s strong suits in some services and consultancy areas, aerospace and IT, as well as some universities, are not enough to overcome the lack of strength elsewhere, notably in manufacturing and the bubble sectors (student debt, financial services and banking). On top of this they point to the lack of oil and gold assets, contracting asset prices, and the lack of equity, alongside historic weak growth, in order to argue that any focus on rebalancing the economy is nonsense. They argue that this is the result of decades of macro-economic policy that has framed the UK as a giant hedge fund. Moreover, a series of roll-backs of labour rights through attacks on Trades Unions, plus privatisation related to market efficiencies, has focused minds on productivity, but has led to an overreliance on debt as incomes are squeezed. In driving forward productivity manufacturing has been seen as secondary to services, including finance, consultancy, and increasingly education. Regulation and forms of credit control have been secondary to enterprise and innovation.

Crucially for Elliott and Atkinson, the crash in 2008 enabled the economy’s defects, which had been covered by three decades of financialisation, to be revealed. These defects include: chronic debt; a long-term attrition on real wages; illiteracy amongst large numbers of the public; a pension time-bomb; no plan for replacing oil/gas/nuclear energy; a deficit in tax receipts, which make socialised payment for the welfare state problematic; dysfunctional banking services; an overreliance on exports to Europe at a time of contraction; and an overreliance on the imports of assets including skilled labour. Moreover, there has been a balance of payments deficit since 1983, and in spite of talk about global markets, the UK’s international net asset position is negative to the tune of £325.6bn. There is: a deficit on trading goods; no rebalancing of the economy towards exports and away from consumption, so that engines of growth are consumer debt and mortgage lending, and not science and education; a private sector that has not invested but hoarded, with cash balances worth £754bn but levels of business investment at less than 2% per annum. For Elliott and Atkinson this is a bet on deleveraging and disinvestment. Moreover, Government-borrowing and rescue packages, plus loan guarantees and outsourcing, which are hidden from the balance sheet, total another £612bn of debt.

They argue that this highlights that the UK is experiencing a qualitative change in its economic status, and in how it views and structures itself, as it de-develops. It is locked into a world of increasing competition and rivalry over energy and resources, including labour. Thus, we face a reality checkpoint, as large segments of the UK population are threatened with increasing impoverishment and unreliable access to power, fuel, food, education, health and shelter. For these authors what is needed is an economic plan, which focuses on the roles of the market and the State, and that we will make better choices if we regard the UK as a submerging market economy.

The Elliott and Atkinson thesis connects to: the views of those in the financial press that fiscal austerity has not worked and needs to be geared around both public and private investment and recapitalisation; the recent article byHerndon, Ash and Pollin that critiques the original research on the relationship between public debt and GDP growth that underpinned austerity; and the calls of the IMF for the Government to rethink its austerity agenda in the face of weak growth. In each of these analyses the outcomes of a 2012 Europaeum report on the impact of fiscal policy on higher education is amplified:

the economic downturn has, on the whole, had a negative short-term impact upon public higher education programmes.European universities are being affected in many different ways during the current economic crisis – with winners and losers already emerging, and the differences set to be multiplied over the coming years depending on how the winners use their comparative advantage, and how the losers can best mitigate the effects of cuts through so-called efficiency savings or by raising new sources of income.

The University then, is being restructured as part of a response to a secular crisis, and academic work, productivity, the rate of profit and labour arbitrage are central to this issue. As Harry Cleaver’s first thesis on the secular crisis noted:

We are writing and talking about secular crisis because neither the cyclical business downturns nor the upturns, nor a whole series of capitalist counter-measures (local and international), have resolved the underlying problems of the system in such a way as to lay the basis for a renewal of stable accumulation. Thus, secular crisis means the continuing threat to the existence of capitalism posed by antagonistic forces and trends which are inherent in its social structure and which persist through short term fluctuations and major restructurings.

This is a point that Aaron Peters makes in his article on workfare as one of capital’s responses to the crisis. As Peters notes:

A discussion of surplus population is central to any enquiry as to the relationship between workfare and the secular crisis. The hypothesis runs that within the contemporary global economy there is a large and growing ‘surplus population’ that is incapable of accessing the labour market. Alongside this group is another yet larger one which frequently includes the ‘working poor’; temporary workers, part-time workers, agency workers, those on zero hours contracts and increasingly since 2008 the precarious self-employed. We know that this second group has grown throughout not only the course of the last several decades but particularly so since the Global Financial Crisis.

Yet employability and individual entrepreneurship developed through an appetite for debt and securitisation underpin the very restructuring of higher education in the global North. They are part-and-parcel of the changing organic composition of- capital and the restructuring required to deliver productivity and growth. What is clear is that there is no such analysis emerging from the leaders of universities, even whilst the austerity agenda that drives the restructuring of the sector is under attack from financial journalists, academic activists and even the IMF. The risk here is that even if a counter-narrative is developed through an analysis of the secular crisis, it is too late to recover the University in any form beyond that of competing capital subsumed under the dictates of money. Securitisation, indentured study, labour arbitrage, internationalisation, commodity-dumping in the global South, the enclosure and privatisation of previously socialised goods are all locked-in.

At issue then is Cleaver’s third thesis on the secular crisis, that of the struggle against capitalist work:

Capitalist rules impose the generalized subordination of human life to work. Whereas all previous class societies have involved the extraction of surplus labor, only in capitalism have all human activities been reshaped as work, as commodity producing labor processes. Those processes produce either use-values which can be sold and on which a profit can be realized or they produce and reproduce human life itself as labor power. Antagonism, resistance and opposition accompany this imposition because this way of organizing human life dramatically restricts and confines its development. People struggle both against their reduction to “mere worker” and for the elaboration of new ways of being that escape capitalist limits.

How might we develop educational spaces into which knowing and subjectivity might be developed, based in-part on socialised knowledge that is liberated from formal educational spaces? As Cleaver notes in his final two theses, at issue is the creation of a revolutionary subjectivity that is based upon

the liberation of alternative, self-determined social “logics” outside and beyond that of capital.

Such a revolutionary subjectivity is entwined with the need to develop

[a] politics of alliance against capital… not only to accelerate the circulation of struggle from sector to sector of the class, but to do so in such a manner as to build a post-capitalist politics of difference without antagonism.

It is the secular crisis outlined by Elliott and Atkinson, the IFS and the IMF, and revealed inside-and-against the political economy of austerity, that is reshaping the very idea of the University. If we are to develop a meaningful, socially-constructed and democratic set of alternatives, they need to be placed against-and-beyond the secular crisis that is restricting and re-inscribing the very idea of the University.


The University and the rule of money

In a post from September 2011 on academic activism, boundary-less toil and exodus, I amend a quote from John Holloway to argue that “academics need to consider their participatory traditions and positions, and how they actively contribute to the dissolution of their expertise as a commodity, in order to support other socially-constructed forms of production”. The amended Holloway quote is as follows.

In reality, what the [University] does is limited and shaped by the fact that it exists as just one node in a web of social relations. Crucially, this web of social relations centres on the way in which work is organised. The fact that work is organised on a capitalist basis means that what the [University] does and can do is limited and shaped by the need to maintain the system of capitalist organisation of which it is a part. Concretely, this means that any [University] that takes significant action directed against the interests of capital will find that an economic crisis will result and that capital will flee from the [University] territory.

I then go on to argue that:

Whether or not we agree with Holloway’s point about the state’s implications in the maintenance of a capitalist order, we have seen capital’s increasing control over higher education in the United Kingdom through the Coalition Government’s shock doctrine. The ideological, political drive towards, for instance, indentured study and debt, internationalisation, privatisation and outsourcing means that the University has little room for manoeuvre in resisting the enclosing logic of competition and in arguing for a socialised role for higher education. This means that the internal logic of the University is prescribed by the rule of money, which forecloses on the possibility of creating transformatory social relationships.

I have been reminded of this by Steve Smith’s acceptance of the politics of austerity and his focus on the rule of money in defining a UK higher education that is predicated on competition and marketisation. This reminds me that the leadership we might crave for an alternative form of higher education that is against student-as-consumer and the extraction of value from previously socialised goods like education, is highly unlikely to come from University Vice-Chancellors. GurminderBhambra provides a salutary reminder of that fact in her comment piece on the Sussex privatisation protests, and the disciplinary reaction of University leaders to peaceful campus protest. It is worth re-visiting the demands and calls for dialogue of those involved in that protest, in order to reflect on the courage it takes to stand-up for collective forms of higher education in a set of spaces that are being increasingly enclosed and commodified, and against the cultural space that is increasingly described by business leaders like Smith.

So the question of how to address the realpolitik of neoliberalism, becomes what is to be done in the face of the politics of austerity? What alternatives are possible in the face of the insistent mantras of the rule of money, other than, as Andrew McGettigan does so ably, to follow the money and to show what we risk losing as we enclose and commodify the historic value of a higher education that was constructed socially? In light of the leadership revealed in Smith’s comment piece I return to my posting from earlier this week on memory, profitability, disruption and socialised alternatives:

At issue are the ways in which knowledge and forms of knowing that are created inside the University, MOOC, disruptive-wherever can be liberated or repatriated for global knowing, and against enclosure and commodification. What forms of knowledge, what skills and practices, what ways of knowing, what mechanisms for analysing global problems, can be emancipated and used to define alternative, socialised value forms? To where can they be liberated or repatriated so that they can be used against-and-beyond their private accumulation for profit? How and where do we ignite critical, political pedagogic practices that enable the democratic production and consumption of knowledge and knowing? These are the questions that ought to frame the idea of (disruptions to) higher education, and its contributions to our collective responses to global crises.

In contesting the enclosure and commodification of the university and higher education there is a need to connect the work of protests like those at Sussex, to the work of trades unions, and to alternative spaces like the Campaign for the Public University and to live projects like the Social Science Centre. Possibilities for refusal and for pushing back on issues of both institutional governance and operation are critical. As McGettigan argues, we need to think about the public funding, regulation and governance of institutions and the sector, and to make connections to other educational spaces like the Workers Educational Association and the Co-operatives movement. However, we also need to consider whether a more activist, public and social role for academics is necessary in the face of the restructuring of universities as competing capitals. We might, then, consider how and where students and teachers can dissolve the symbolic power of the University into the actual, existing reality of protest, in order to structure a process of meaningful social transformation? At issue is the autonomy of the University in helping to define such an alternative when its world is increasingly shaped by the polyarchic constraints of money/commodity and market-based consumption.


On memory, profitability, disruption and socialised alternatives

On memory: In scoping the policy space inside which Australian Higher Education is being restructured, Kate Bowles argues for recognising the complexity of higher education in all its forms, and for finding spaces to contest the neoliberal mantra of efficiency. She argues that:

[academics] now need to speak up in precise and evidence-based ways about the opportunity cost of applying the Efficiency Dividend to something as complex and socially diverse as Australian higher education.

This is an important point that asks us to recognise and articulate the complexity of our socialised memory. How might we describe the pedagogic projects that form and are formed by our lives? What is needed is a historical analysis of the socialised nature of higher education and the socialised nature of the kinds of learning and knowing that take place inside its forms, as they are defined spatially and temporally. This socialisation is deliberately set against the individuated, commodified, entrepreneurial and venture capital-driven responses that currently infect our discussion of possible, alternative forms of higher education. David Kernohan exemplifies this need for a historical analysis when he argues against the simplistic reduction of the discussion of (massive and open) on-line education to its co-option by elites in the present. He recognises the relationships between historical memory, socialised value, and institutions as social spaces for generating and sharing knowing or knowledge:

Work needs to be done. But I am unable to agree that the answer lies in trying to subvert what already exists, because there is already an entire industry that has been trying to do that for 20 years, and they have already succeeded in destroying a lot of what was great about the old system. When we see academic conditions fall again and again, when we see new PhDs earning less than they would tending bar, when we see learners treated like numbers, we know that it could be better because in living memory it has been better. Maybe it is our memories we need to share with you.

On profitability: In defining and sharing the value of remembering, the mechanisms through which MOOCs or whatever-disruptive-innovations have been subsumed under or erased by “the missions of the elite colleges and universities [that t]hey were designed to undermine” (as Stephen Downes has argued), is less important than recognising that they represent one mechanism through which capital is seeking to restore its systemic profitability. Their relationship to universities as competing, global capitals, and inside the systemic drive to release new masses of surplus value that can underpin new forms of accumulation from new markets needs to be understood.

To argue for or against “the deeply subversive intent and design of the original MOOCs” is a secondary issue facing higher education. The deeper set of questions revolves around the real subsumption of the forms of higher education by transnational finance capital, in order to restore profitability in the face of global, structural crisis. Michael Roberts notes that “investment depends on profit – and profit depends on the exploitation of labour power and its appropriation by capital”. Thus, the relationships between venture capitalists, universities and colleges, and on-line providers, need to be seen systemically in terms of capital’s overcoming of the barriers to profitability. This is especially the case inside the current historical crisis of capital where new barriers to accumulation have been reached. In order to set the processes for capital accumulation in-train once more, a new mass of surplus value needs to be released and there is an increasingly desperate search for new markets. Much of the current discussion about MOOCs and the relationships between formal and informal educational providers are enclosed by the reality of overcoming disruptions to established, systemic patterns of accumulation and profitability. These disruptions are forcing the value incorporated inside previously socialised spaces like higher education into the open, where it can be re-enclosed and commodified.

Thus, in order to generate a meaningful response to the pleas of Bowles and Kernohan for pushing back against the drive for efficiency and for generating alternatives, it is no use framing those alternatives inside-and-against a view of the elite University vs allegedly disruptive, on-line innovations. As Dumenil and Levy, quoted in Basu and Vasudevan, note the point is to understand the place of public higher education inside the systemic realities of capitalism’s drive to re-establish profitability and accumulation using a variety of mechanisms, like indentured study, defining universities as business, outsourcing, efficiency dividends, MOOCs etc.:

the rate of expansion of a capitalist economy is limited by the general rate of profit that it can generate. The intuition is straightforward. Expansion of a capitalist economy is the accumulation of capital; accumulation, in its turn, rests on capitalizing surplus value, i.e., generating and realizing surplus value. Since profit is a form of expression of surplus value, it follows that the rate of profit governs the rate of expansion of the system. On the demand side it has an impact on the inducement to investment; on the supply side, it determines the financing of investment. There is also in addition a link between profitability and stability.

In dishing the Keynesian analysis of austerity and spending Roberts has some salient context for this discussion. He argues that the key in responding to the current crisis of capitalism is to understand the relationships between: government activity; socialisation in the form of spending on public works, education or health; and production/consumption processes that underpin profitability. Roberts states that spending

on education and health (human capital)… may help to raise the productivity of labour over time, but it won’t help profitability. If it goes mainly into government investment in infrastructure, it may boost profitability for those capitalist sectors getting the contracts, but if it is paid for by higher taxes on profits, there is no gain overall. And even if it is financed by taxes on wages or cuts in other spending it will only raise overall profitability if it goes into sectors with a lower ratio of capital to labour.

In terms of the UK economy he notes that “Productivity in productive sectors of the economy is stagnant and investment has collapsed. Holders of capital are accumulating cash, sending it abroad or buying financial assets.” Those financial assets include student debts and institutional bond issues, and he might also add that Capital is looking at ways of cracking open the value contained in public education through labour arbitrage, outsourcing and privatisation, for private accumulation.

On disruption: The disruptive nature of MOOCs or whatever on-line innovation has to be seen inside-and-against the current crisis of capitalism, and the ways in which they exemplify the tensions between the social character of production and the private character of appropriation inside the system. As highlighted by Marx in the Grundrisse, these innovations are ways in which capital restructures production to overcome the barriers imposed by the working class:

[Capital] by its nature drives beyond every spatial barrier… the creation of the physical conditions of exchange – of the means of communication and transport – the annihilation of space by time – becomes an extraordinary necessity for it. [pp. 524-5]

Thus, the current discussion about MOOCs or the meaning of higher education or the idea of the University or whatever needs to be framed inside-and-against higher education as a revolutionary means for releasing surplus value and for restoring profitability to the broader system, by overcoming barriers to production and consumption. As Marx and Engels note in the Communist Manifesto, this demands revolutionary practice by the bourgeoisie as a global hegemon.

The bourgeoisie cannot exist without constantly revolutionizing the instruments of production, and thereby the relations of production, and with them the whole relations of society. … Constant revolutionizing of production, uninterrupted disturbance of all social conditions, everlasting uncertainty and agitation distinguish the bourgeois epoch from all earlier ones. All fixed, fast frozen relations, with their train of ancient and venerable prejudices and opinions, are swept away, all new-formed ones become antiquated before they can ossify. All that is solid melts into air, all that is holy is profaned, and man is at last compelled to face with sober senses his real condition of life and his relations with his kind. The need of a constantly expanding market for its products chases the bourgeoisie over the entire surface of the globe. It must nestle everywhere, settle everywhere, establish connections everywhere. [p. 13.]

It is, therefore, critical that we see the debate about higher education, efficiency drives, disruptive innovations or whatever, in terms of systemic profitability. As Roberts notes:

A Marxist analysis, in my opinion, recognises that the underlying cause of the crisis in the first place is to be found in the failure of capitalist production to generate enough profit. Then, until capitalism can destroy enough old or “dead” capital (employees, old technology and unprofitable weaker capitalist enterprises) to restore profitability and start the whole thing again, it will languish. In this long depression I reckon this may well require another big slump.

On socialised alternatives: Roberts believes that the alternative is “to end the capitalist mode of production and replace it with democratically controlled, planned social production.” Thus, in responding to Bowles and Kernohan it is no use decrying the subsumption of disruptive innovation inside institutional realities. This is simply a form of false consciousness. At issue are the ways in which knowledge and forms of knowing that are created inside the University, MOOC, disruptive-wherever can be liberated or repatriated for global knowing, and against enclosure and commodification. What forms of knowledge, what skills and practices, what ways of knowing, what mechanisms for analysing global problems, can be emancipated and used to define alternative, socialised value forms? To where can they be liberated or repatriated so that they can be used against-and-beyond their private accumulation for profit? How and where do we ignite critical, political pedagogic practices that enable the democratic production and consumption of knowledge and knowing? These are the questions that ought to frame the idea of (disruptions to) higher education, and its contributions to our collective responses to global crises.


Critical Pedagogies Symposium: educational technology and the enclosure of academic labour

I’m pleased to be presenting at a symposium titled Critical Pedagogies: Equality and Diversity in a Changing Institution, in Edinburgh in September. I’m going to speak about “Educational technology and the enclosure of academic labour inside public higher education”. My presentation links to the following symposium topics:

  • Teaching within and beyond the classroom space; teaching as activism; virtual learning environments;
  • Effects of neoliberal policies and philosophies in institutional life; Education as commodity.

Abstract: across higher education in the United Kingdom, the procurement and deployment of educational technology increasingly impacts the practices of academic labour, in terms of administration, teaching and research. Moreover the relationships between academic labour and educational technology are increasingly framed inside the practices of neoliberal, transnational activist networks, which are re-defining UK higher education as a new model public service. This paper highlights the mechanisms through which educational technologies are used to control, enclose and commodify academic labour. At issue is whether academics and academic staff developers have a critical or ethical lens through which to critique the nature of the technologies that they use and re-purpose inside the University, and whether such a critique might enable technologies to be deployed for the production of socially-useful knowledge, or knowing, beyond monetization in the knowledge economy.