Editorial

Spectacular success

Some activists of Germany’s non-governmental organisations argue that three separate spheres shape nations: politics, business and civil society. In their view, civil society serves as a mediating function, reconciling social needs and environmental exigencies with profit-minded corporations and power-hungry politicians. This notion implies that business associations belong to the economic sphere, whereas labour unions and environmental action groups are part of civil society. Civil society is considered somehow superior to selfish business.

This is fuzzy thinking. It is not self-evident that demands raised by IG ­Metall, the union of Germany’s well paid metal workers, are inherently ­better than those raised by Gesamtmetall, the industry association. Both organisations have a bearing on society, they pursue their members’ interests and share a long history of consensus on what concerns their respective stakeholders alike.

Civil society is what emerges when citizens make use of fundamental democratic rights: the freedoms of speech, peaceful assembly and association. Democratic constitutions guarantee these liberties – and others. The USA’s Bill of Rights includes the pursuit of happiness. In a similar vein, Germany’s Fundamental Rights include the free development of one’s personality. These liberties allow people to choose careers and make fortunes. Not by coincidence is modern democracy about vibrant civil societies and flourishing markets. Unless private-sector companies thrive, there is no source of prosperity or influence outside the state apparatus. Democracy, however, depends on plurality.

Governments matter too of course and so does civil society. In Germany, toxic dioxin was recently found in eggs and meat. Agriculture and food processing obviously need stricter regulation and tighter oversight. Various interest groups – NGOs all of them – will join in the debate and contribute to finding a viable solution. Such compromises may not be perfect, but they result from open and reasoned debate. They are more likely to work out than the orders of an authoritarian government.

For these reasons, it is quite likely that even the People’s Republic of China will eventually grant civil rights and allow a real civil society to grow. The regime has already opened up considerably since dropping Maoist authoritarianism and opting for markets. A decade ago, western scholars predicted that China will eventually become a democracy. Many have since lost patience and are now worrying about “authoritarian capitalism”. They miss the point that China still is very poor, and income levels are well below the mark where societies tend to shed authoritarianism for good.

China’s leadership is guilty of brutally disrespecting human rights. Unlike most dictators, however, it seems committed to national welfare. By relying on market dynamism in its spectacularly successful fight against poverty, the regime is allowing new sources of power and influence to emerge – though it certainly does not grant them full freedom. President Hu Jintao’s words in Washington in January about China still having work to do on human rights may have been more than just diplomatic rhetoric, however. He probably knows that markets depend on the free flow of information. Shanghai cannot become a world class financial centre without free media. Business papers, however, never focus only on markets, they inherently need to discuss policy too.