Verbatim | May 06,2023
Nov 18 , 2023
By Diane Coyle
The handmaiden to populism's rise across the West has been distrust of experts, particularly those in positions of power who believe their specialised knowledge entitles them to make decisions that affect millions of people. Populist leaders routinely rebuke such experts, disparaging them as entrenched, out-of-touch political operatives inhabiting the "swamp," the "blob," or the "deep state."
This sentiment stems partly from the economic shocks that followed the 2008 financial crisis, which culminated in today's high inflation and stagnant productivity. As middle-class parents faced the prospect that their children might not be better off than them, they were bound to look for someone to blame. The technocratic elite emerged as a convenient scapegoat in an atmosphere of widespread public discontent.
To be sure, independent expertise has failed to prevent crises such as the near-collapse of the global financial system or the COVID-19 pandemic. At times, experts have even made things worse. For example, central banks were far too slow to recognise the readily apparent fact that massive quantitative easing would boost asset prices, thus disproportionately benefiting those who already owned assets and contributing to rising inequality.
The concept of independent central banks setting monetary policy, insulated from the short-term pressures of electoral cycles, seemed self-evident during the stable years between the 1990s and the mid-2000s. In retrospect, however, the macroeconomic stability of the "Great Moderation" likely owed as much to factors like the integration of China into the global economy, and even sheer luck, as it did to sound policymaking.
But the growing public distrust of experts is not merely the result of widespread economic distress or the proliferation of conspiracy theories on social media. At the heart of the backlash against expertise are profound technological and economic shifts that call for more than just specialised know-how; they require value judgments.
Nowhere is the transition from a relatively stable (albeit complex) decision-making environment to one of radical uncertainty more apparent than in competition policy. Technological advances in artificial intelligence and decarbonisation, together with escalating geopolitical tensions and a worldwide revival of industrial policy, have led to a departure from the principles that have long underpinned global antitrust enforcement.
The Chicago School approach, which focuses on consumer prices within specific markets and maintains a sceptical view of state intervention in markets and mergers, has dominated antitrust enforcement in the United States and elsewhere since the 1970s. This analytical framework required complex legal and economic analyses by antitrust experts. It often resulted in competition authorities being granted independent decision-making powers – an arrangement viewed as an effective defence against industry lobbying.
If there was an objectively "correct" course of action in any given merger case, the thinking went, government interference could only make things worse.
However, the case for expert-guided decision-making has begun to unravel in recent years. US antitrust enforcers, led by Federal Trade Commission Chair Lina Khan and Jonathan Kanter, head of the Justice Department's antitrust division, have focused their attention on reducing the structural market power of large companies, signalling a return to a traditional, "pre-expert" understanding of how markets function.
The resurgence of industrial policies, driven by geopolitical considerations and the strategic need to maintain a dominant position on the technological frontier in critical areas like batteries and advanced semiconductors, has far-reaching implications for competition analysis. After all, there are no definitive analytical answers to questions such as whether the state should subsidise domestic firms in emerging high-tech sectors or level the competitive playing field for foreign suppliers.
These questions require carefully evaluating the inherent uncertainties, the political environment, and the potential winners and losers. These are not issues that technocrats can resolve on their own, although their expertise remains vital to devising effective policies.
Despite the populist backlash, the world still needs technocrats. In his 1973 book, "The Coming of Post-Industrial Society," the sociologist, Daniel Bell, anticipated the tension between the expertise necessary to run a complex modern society and the appeal of populist ideologies. He wrote that we must rethink how experts interact with the public to maintain the authority of scientific and technical expertise.
Better communication is essential, starting with what is often called "communicating with the ears" – that is, experts genuinely listening to people instead of lecturing them. By embracing more deliberative and participatory methods, experts could facilitate a two-way flow of information and foster trust. But in the current climate of rampant misinformation and suspicion, such incremental measures may not yield dramatic results.
Restoring confidence in expertise will not be quick or easy, and it would be foolish to expect more thoughtful leadership from populist politicians. Instead of merely hoping for the best, researchers could help rebuild trust by reassessing and updating our existing institutional frameworks to keep pace with today's fast-changing global environment. As the boundaries between value-based decisions and independent expertise become increasingly blurred, we must ensure we do not throw the baby out with the bathwater.
This article is provided by Project Syndicate (PS).
PUBLISHED ON
Nov 18,2023 [ VOL
24 , NO
1229]
Sponsored Contents | May 02,2023
Fortune News | Aug 13,2022
Viewpoints | Aug 12,2023
Sponsored Contents | Jul 24,2022
Viewpoints | Aug 03,2024
My Opinion | 111401 Views | Aug 14,2021
My Opinion | 107743 Views | Aug 21,2021
My Opinion | 106437 Views | Sep 10,2021
My Opinion | 104484 Views | Aug 07,2021
Aug 18 , 2024 . By AKSAH ITALO
Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...
Jul 13 , 2024 . By AKSAH ITALO
Investors who rely on tractors, trucks, and field vehicles for commuting, transportin...
Jul 13 , 2024 . By MUNIR SHEMSU
The cracks in Ethiopia's higher education system were laid bare during a synthesis re...
Jul 13 , 2024 . By AKSAH ITALO
Construction authorities have unveiled a price adjustment implementation manual for s...
Oct 5 , 2024
Not long ago, the sight of exchange bureaus in Addis Abeba was as rare as a cloudless...
Sep 28 , 2024
In the early 2010s, Ethiopian authorities found themselves at odds with the Internati...
Sep 21 , 2024
A nurse in Addis Abeba shares a cramped one-room apartment with three colleagues. Her...
Sep 14 , 2024
Successive regimes share a common legacy: a deep-seated commitment to education as a...
Oct 6 , 2024
On Saturday, October 5, 2024, Mesqel Square transformed into a vibrant venue for colo...
Oct 6 , 2024 . By AKSAH ITALO
The pharmaceutical industry is moving to export their products overseas, aiming to re...
Oct 6 , 2024 . By AKSAH ITALO
Senior officials of the Ministry of Finance are racing to establish a regulatory fram...
Manufacturers press federal authorities to speed up the transformation of industrial...