Welcome to the Market-State

From time to time, I will bring to your attention some book that has greatly influenced my thinking about the future of research universities. One of these is The Shield of Achilles, by Philip Bobbitt, Knopf, 2002.   In the interests of full disclosure, I must state that Philip came to speak several times to the planning group drafting our 2004 Plan.

Bobbitt is the A. W Walker Centennial Chair of Constitutional Law at the University of Texas. He has also held academic positions at Oxford(history) and King's College (nuclear strategy), and served in several senior positions on the National Security Council. He brings this breadth of experience to bear in this book on a deep analysis of the evolution of constitutional order - the compact between the governors and the governed - from the early 1400's into the present.

Bobbitt is among those who believe that the constitutional arrangement called the nation-state is dying . The social compact of the nation-state, in Bobbitt's terms, calls for the state having as mission the improvement of the welfare of its people, and being accorded in return the ability to call on its citizens for sacrifice to preserve the state. Modern technologies, demographics, and markets have made this compact increasingly difficult to sustain, however. For example, States can no longer control their currencies, their economies, their borders, or their cultures. This does not signal the end of the State, however, but rather that a new constitutional order will appear - in fact, is already appearing.

From time to time, I will bring to your attention some book that has greatly influenced my thinking about the future of research universities. One of these is The Shield of Achilles, by Philip Bobbitt, Knopf, 2002.   In the interests of full disclosure, I must state that Philip came to speak several times to the planning group drafting our 2004 Plan.

Bobbitt is the A. W Walker Centennial Chair of Constitutional Law at the University of Texas. He has also held academic positions at Oxford(history) and King's College (nuclear strategy), and served in several senior positions on the National Security Council. He brings this breadth of experience to bear in this book on a deep analysis of the evolution of constitutional order - the compact between the governors and the governed - from the early 1400's into the present.

Bobbitt is among those who believe that the constitutional arrangement called the nation-state is dying . The social compact of the nation-state, in Bobbitt's terms, calls for the state having as mission the improvement of the welfare of its people, and being accorded in return the ability to call on its citizens for sacrifice to preserve the state. Modern technologies, demographics, and markets have made this compact increasingly difficult to sustain, however. For example, States can no longer control their currencies, their economies, their borders, or their cultures. This does not signal the end of the State, however, but rather that a new constitutional order will appear - in fact, is already appearing.

This new order is called by Bobbitt the market-state, based on the new promise that the State will maximize the opportunity (rather than the welfare) of its people. Individuals and societies will then thrive or fail based on their ability to grasp the opportunities offered by a global marketplace. Areas of control and emphasis by the State will shift to reflect this change from a focus on the welfare of the group to a focus on the opportunity of the individuals in the group. Non-governmental agents will become increasingly important, and will more and more act in ways that are global, transcending state boundaries. Bobbitt discusses in detail many of the changes that have already occurred as part of the transition to a market-state, and projects these changes into the near future. He engages the reader in scenario planning for more distant outcomes.

According to Bobbitt, however, not all market states will evolve in the same way. He identifies three broad different forms of market-state, growing out of historic difference in the emergence of capitalism in different countries. The Entrepreneurial Market-State is rather libertarian, looking for minimal state intervention in the economy and the private lives of citizens. “Privatized health care, housing, pensions, and education, as well as low taxes and low welfare benefits all characterize such states.” (p671). The US fits into this category.  The Mercantile Market –State “relies upon a strong central government to protect national industries, subsidize crucial research and development, and steer certain important enterprises toward success.”   “Opportunities available to the consumer…are sacrificed to the long-term opportunities of the society.”  In addition, “These societies are able to maintain social cohesion...in part because income disparities are suppressed, variations in take-home pay between manufacturing workers and service workers are rationalized, and elaborate social welfare subsidy systems, including public housing and access to education, are put in place…” (all p.671) Ensuring social stability might be said to be the goal of the Mercantile Market-State.  Many Asian economies fall into this category.. Finally, there is the Managerial Market-State. This form is characterized by “free and open markets within a regional trading framework, a government that provides a social safety neat and manages a stringent monetary policy, and a socially cohesive society.”(p.672) “Strong national unions negotiate contracts across whole sectors of the economy rather than by individual company or factory.” Assuring social equality is one of the major goals of this form. Much of Europe falls into this category. He predicts strong competition (or perhaps conflict) between these different forms of market state as each seeks to become the constitutional archetype of the market-state.

Bobbitt's analysis of the ongoing change in society and his predictions for the future hold much (too much, in fact) for anyone looking at the future of higher education. One must question how higher education will be viewed by government leaders, parents and students in this increasingly market-driven economy. Will research and education be viewed as a public good, or a private good? An investment, or a purchase? How will the answers differ according to the level and focus of the education? How will the successful research university have to respond in order to thrive in the increasingly global marketplace for people and ideas?

This book argues very persuasively for a view of a radically changing world that holds many challenges for higher education. In doing so, it clearly describes the global forces at work in producing these changes, thus better enabling us to imagine appropriate responses.

This new order is called by Bobbitt the market-state, based on the new promise that the State will maximize the opportunity (rather than the welfare) of its people. Individuals and societies will then thrive or fail based on their ability to grasp the opportunities offered by a global marketplace. Areas of control and emphasis by the State will shift to reflect this change from a focus on the welfare of the group to a focus on the opportunity of the individuals in the group. Non-governmental agents will become increasingly important, and will more and more act in ways that are global, transcending state boundaries. Bobbitt discusses in detail many of the changes that have already occurred as part of the transition to a market-state, and projects these changes into the near future. He engages the reader in scenario planning for more distant outcomes.

According to Bobbitt, however, not all market states will evolve in the same way. He identifies three broad different forms of market-state, growing out of historic difference in the emergence of capitalism in different countries. The Entrepreneurial Market-State is rather libertarian, looking for minimal state intervention in the economy and the private lives of citizens. “Privatized health care, housing, pensions, and education, as well as low taxes and low welfare benefits all characterize such states.” (p671). The US fits into this category.  The Mercantile Market –State “relies upon a strong central government to protect national industries, subsidize crucial research and development, and steer certain important enterprises toward success.”   “Opportunities available to the consumer…are sacrificed to the long-term opportunities of the society.”  In addition, “These societies are able to maintain social cohesion...in part because income disparities are suppressed, variations in take-home pay between manufacturing workers and service workers are rationalized, and elaborate social welfare subsidy systems, including public housing and access to education, are put in place…” (all p.671) Ensuring social stability might be said to be the goal of the Mercantile Market-State.  Many Asian economies fall into this category.. Finally, there is the Managerial Market-State. This form is characterized by “free and open markets within a regional trading framework, a government that provides a social safety neat and manages a stringent monetary policy, and a socially cohesive society.”(p.672) “Strong national unions negotiate contracts across whole sectors of the economy rather than by individual company or factory.” Assuring social equality is one of the major goals of this form. Much of Europe falls into this category. He predicts strong competition (or perhaps conflict) between these different forms of market state as each seeks to become the constitutional archetype of the market-state.

Bobbitt's analysis of the ongoing change in society and his predictions for the future hold much (too much, in fact) for anyone looking at the future of higher education. One must question how higher education will be viewed by government leaders, parents and students in this increasingly market-driven economy. Will research and education be viewed as a public good, or a private good? An investment, or a purchase? How will the answers differ according to the level and focus of the education? How will the successful research university have to respond in order to thrive in the increasingly global marketplace for people and ideas?

This book argues very persuasively for a view of a radically changing world that holds many challenges for higher education. In doing so, it clearly describes the global forces at work in producing these changes, thus better enabling us to imagine appropriate responses.

Comments

[Dissertation Writing]

it's good to see this information in your post, i was looking the same but there was not any proper resource, thanx now i have the link which i was looking for my research.

[Ramon]

It's great to see another person in Academia love this book as much as I. A lecturer was allowed to teach a class based on Shield of Achilles and despite being very aware of the intermingling of constitutional theory, advancements in war technology, and economical influences, Bobbitt really spelled it out for anyone willing to listen. It's been 5 or so years since that class and the lecturer, whom I got to know relatively well, has not been allowed to teach that book since.

If only they would... I'd love to see students so wide-eyed when they read how much has been correctly predicted and how ingrained the market-state motto of "maximizing opportunity" is in just about every area of life, now.