Rudd in the Monthly

I have just finished Aussie PM Kevin Rudd's essay on the financial crisis in The Monthly. In it, he mounts a strident attack on 'free-market fundamentalism' which he blames for our current woes - positioning himself as a pragmatic 'social democrat' in the meantime. It is interesting to see such an ideological turn from an Aussie politician - usually we steer clear of that stuff. It is a rather turgid read I have to say - but he lays the challenge out there to neo-liberals: how has your ideology done anything but expose us to this terrible danger?

I have never been fully persuaded that by the small govt mantra of the neo-liberal/Reaganite. I can understand some apects of it, but my theological appraisal of human nature (that we are unusually evil AND stupid) means that I don't trust the free market to produce just outcomes anymore than I trust government not to become corrupt and self-serving. Neo-liberalism has its own utopian vision - a dream of unfettered market forces aligning to produce prosperity and security for all. This is just as dangerous as the utopian vision of the socialist of course, with a completely planned and fixed economy. The trouble with neo-liberalism is that it hopes that a human vice - namely, greed - will produce much virtue.

The Pauline account of the role of the state focuses on justice - the restraint and punishment of the wicked (Rom 13). That is, in its own way, minimal - a 'small' government. Does it square with Rudd's view of the role of the state? -

Government is not the intrinsic evil that neo-liberals have argued it is. Government, properly constituted and properly directed, is for the common good, embracing both individual freedom and fairness, a project designed for the many, not just the few.

Well, I think so: here is a vision for the adminstration of justice - with the government taking its proper role of serving the people and not itself. The state is after all 'God's servant to do you good'. The language of 'fairness' echoes a kind of Rawlsian philosophy of justice, perhaps - and that could be debated, certainly. Rudd here speaks of 'the creative agency of government' - a phrase that could alarm neo-liberals and Reaganites, but which, in the current circumstances is prbably justified.



As Sarkozy says: Le laissez-faire, c'est fini.