Actually Existing Postliberalism - Nathan Pinkoski

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A very important article and essay - which shows some flickering signs of self-awareness amongst the American Imperial commentariat, but it still does not go far enough. The underlying mythology that buttresses the article is the mythology of liberal neutrality which any half-literate sense student of history knows was a noble lie perpetuated by the technocratic elites that were in formation decades prior but reached full maturity after WWII. There was never a liberal neutrality that allowed for cold technocratic calculation - it was always based on the calculus of expanding particular conceptions of very "unneutral" American power. Which to be honest is not a scandal in itself, all Empire seeks to forge order in its own holy image, but the scandal is pretending that it is "neutral".

However, some choice excerpts:

Postliberal thinkers from Patrick Deneen to Adrian Pabst have exposed the conceptual problems inherent in liberal theory. Liberals justify the separation of the public realm from the private sphere by appealing to value neutrality. This notion of separation involves a certain moral and metaphysical thinness. The commitment to neutrality is thought to prevent states’ coercing belief through law and force. It protects the private sphere, so that individuals and associations can live out their creeds. Yet by promoting civic neutrality, liberalism socializes us to moderate our ambitions for public life. Against this view, postliberal thinkers argue that the liberal state’s rejection of a substantive vision of the good hollows out politics and civil society. Liberalism produces a state bent on driving tradition and religion out of public life, an atomistic society in which money is the only universally acknowledged good. Postliberal intellectuals contend that if our ruling classes relinquished their liberal commitment to neutral institutions in favor of a substantive vision of the good, we could renew our civilization.

Leftist intellectuals were among the first to recognize the collapse of the old liberal separation between state and society. In their view, neoliberalism was to blame. Under Reagan and Thatcher, the private sector began to take over the public one; corporate power took control of the state, and economics captured politics. But this analysis gets ­reality backwards. The state has not been suborned by economic interests. Rather, political interests have come wholly to dominate economic and financial interests, fusing state and society together.

The international situation tells the tale of postwar liberalism’s breakdown most clearly. Neutral institutions, particularly financial ones, have been weaponized to serve political ends. In this realm, the erosion of the distinction between state and society has been quiet and subtle, yet startlingly effective. The political transformation of world finance has driven domestic upheavals and reordered the way we are governed. It is the engine of the West’s great transformation from liberal modernity to something new—to actually existing postliberalism.

Yet the policy of enlargement was not just about using American military might to expand liberal democracy. Enlargement, Lake argued, had a second meaning. It was about developing and enhancing state-society partnerships. The Clintonians were learning from domestic politics. In that sphere, they were launching a revolution from “government” to “governance,” what Christopher Caldwell describes as the “great innovation of the Clinton administration.”

Borrowing from management theory, the Clintonians wanted government to expand to involve social actors. These actors were not held to the same rules of conduct as state actors were, and therefore could act much more effectively. By leaning on social actors, leaders could bypass state actors responsible to the electorate and could get good results. Domestic lessons set the precedent; after all, the civil rights revolution was conducted as a state-­society project. Court decisions had established the significant liabilities facing private organizations should they fail to be vigilant agents of anti-­discrimination. And private organizations learned to become very effective agents of this new political project. They had their vision of justice and wanted to achieve it. It was too important to leave that task to slow-moving governments. By the early nineties, there were now legions of NGOs, corporations, philanthropic associations, academics, entrepreneurs, journalists, and bureaucrats who expected to have a say in politics. They did not see themselves as bound by national loyalties, restricted by certain borders, or subject to rigid accountability structures. In the new era of “governance,” this dispersion of control was something to celebrate. It’s no surprise that Lake’s speech targeted “centralized power” as the enemy hindering the spread of the “blue” hue. Globalization’s interpreters, wedded to narratives about the obsolescence or privatization of the state, passed over the true significance of these changes. What was really happening was the deformation of the state.

Those resources were quickly put into action. As Clinton adviser James Steinberg said, “We succeeded in something that had been tried ­ever since the early seventies, which was bringing the economics into the heart of national ­security decision-­making.” Over the next few decades, the Clintonians and their successors would devise increasingly ingenious ways to put economics at the service of politics. They used America’s financial super-eminence to project political power abroad, imposing American aims without risking ­American lives.

After September 11, 2001, the innovators were provided with a unique opportunity to put their proposals into action. To strike back at al-Qaeda, they banished the old liberal mentality and its hesitations about weaponizing the private economy. One of the innovators, Juan Zarate, said: “We realized that private-sector ­actors—most importantly, the banks—could drive the isolation of rogue entities more effectively than governments—based principally on their own interests and desires to avoid unnecessary business and reputational risk.” State actors started this process, but private actors did the essential work. “When governments appear to be isolating rogue financial actors, the banks will fall into line . . . Our campaigns leveraged the power of this kind of reputational risk.”

The direction of financial means toward political ends could be accomplished only with the ­cooperation of banks and other private entities. Private actors in civil society did not oppose this cooperation. Rather than check the power of the state, as liberal theorists stipulate, the private sphere of global finance collaborated with the state. Far from limiting the state, private economic actors have enhanced its powers and extended its reach, all the while changing their own understanding of their mission, the requirements of corporate citizenship, and the contours of citizenship itself.

Barack Obama took the new paradigm further. When he made gay rights a cornerstone of American foreign policy, the strategy to ensure their spread relied on state-society partnerships. Hillary Clinton’s signature 2011 speech on gay rights promised to “support the work of civil society organizations working on these issues around the world.” Breaking from prior U.S. practice, these organizations could conceal the source of their funds, hiding their connection to the U.S. government in order to pretend that gay rights was a grassroots movement.

Actually existing postliberalism may have advanced furthest in Canada. Yet de-banking has become more and more common in the West. Tactics once employed against al-Qaeda are used against citizens deemed “children of the same foul spirit.” In 2022, the National Committee for Religious Freedom (NCRF) had its account with JP Morgan Chase closed. Chase said it might consider reopening it if NCRF divulged some of its donors’ names. Although Chase changed its story several times, the bank insists that it is complying with federal regulations on money laundering and terrorism. ­Fidelity Charitable has brought to bear similar pressures to break donor anonymity at the Alliance Defending Freedom. In June 2023, the UK bank Coutts and Co. suddenly closed Nigel Farage’s account. This decision was later exposed as politically motivated, as an internal dossier had concluded that Farage was “xenophobic and pandering to racists.” In the investigation that followed the scandal, the Financial Conduct Authority reports that UK banks are closing almost 1,000 accounts every day, a massive increase over prior years.

Some revolutionary epochs are beset by the illusion of change. As Alexis de Tocqueville saw, the architects of the French Revolution—the 1789ers—relied on the powerful tool of a centralized state and the freedom of action made possible by a hollowed-out civil society, both created by the old regime. By contrast, the epoch of actually existing postliberalism is beset by the illusion of continuity. Its architects—the 1989ers—came into positions of power and influence just as the Cold War was ending. They knew very little of the war itself and almost nothing of its beginning. But they justified their ambitious geopolitical projects by tracing a long line of continuity back through the Cold War to the Second World War. The West’s victories over communism, fascism, and racism could be stretched further and further afield, isolating and destroying “backward states” and “rogue actors.” On these terms, the ’89ers imagined that they were the next generation of defenders of a continuous liberal tradition. But their actions indicate otherwise. Their substantive vision of the good didn’t just run up against hard limits in the last few years. It devoured liberalism. The ’89ers reconfigured the whole international system away from the liberal principles they ostensibly cherished. In due course, the domestic sphere has been bent to this new order.

The central drama of the last three decades has been the fusion of state and society. The ’89ers ushered in actually existing postliberalism, a society in which governmental power, cultural power, and economic power are coordinated to buttress regime security and punish the impure. 1989 heralded not the triumph of liberalism but its downfall. However, many refuse to recognize—or cannot recognize—how profoundly the West has changed. Our task is to live in the world into which we are thrown, to see it accurately, and to push it in a better direction.


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