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Governance in the age of global markets: challenges, limits, and consequences

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Unable to provide a concept of community higher than shared material gain or a concept of morality higher than adherence to procedural rules, [neo]liberalism has turned western and, increasingly, world society back toward not merely the state of nature which Locke postulated, but the state of war of each against all which haunted Hobbes. The myth of the beginning is converted into the reality of the end.

– (Ferkiss 1974, p. 155).

Abstract

We live in an age defined in large part by various facets of neoliberalism. In particular, the market world has impinged on virtually every aspect of food and agriculture. Moreover, most nation-states and many international governance bodies incorporate aspects of neoliberal perspectives. Multi-stakeholder initiatives (MSIs), with their own standards, certifications, and accreditations are evidence of both the continuing hegemony of neoliberalism as well as various responses to it. Importantly, to date even attempts to limit neoliberal hegemony through MSIs have been largely within the parameters established by those same neoliberal agendas. However, neoliberalism is itself in crisis as a result of climate change, the continuing financial crisis, and rising food prices. The founding myths of neoliberalism are still widely held, having the effect of closing off alternative paths to the future. Yet, this need not be the case. Alternatives to the current MSIs that promote justice, democracy, and equality can still be constructed.

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Notes

  1. One might also argue that they adopt parts of the industrial world (e.g., Boltanski and Thévenot 1991; Raynolds this issue). However, they do so largely to the extent that it supports marketization.

  2. Ludwig von Mises (1978 [1933], p. 13), Hayek’s mentor, explained it thusly: “The science of human action that strives for universally valid knowledge is the theoretical system whose hitherto best elaborated branch is economics. In all of its branches this science is a priori, not empirical. Like logic and mathematics, it is not derived from experience; it is prior to experience. It is, as it were, the logic of action and deed.”

  3. Montesquieu (1914 [1752]) developed the modern notion that representative democracies can only be considered democratic to the extent that the executive, legislative and judicial functions remain separate.

  4. As explained by the International Organization for Standardization (ISO 2012): “Conformity assessment is the process used to show that a product, service or system meets specified requirements.”

  5. In a recent article, Rahman (2012) proposes a solution to the problem drawing on the principles of game theory. Essentially, the idea is to provide incentives to those who monitor the behavior of others such as to encourage them to do their jobs. Whether this might work in practice remains to be seen. It seems unlikely given that there are many layers of audits, each of which imposes requirements on other actors, as well as competitions among auditors trying to capture various markets for auditing.

  6. The neoliberal conception of ‘rule of law’ emphasizes the formal equality of all under the law, ignoring the actual inequalities that might be remedied or ameliorated with civic action. See, for example, Hayek (2007 [1944]).

  7. This is not to suggest that States always enforce the law adequately; in many instances corruption and laxity limit State protections. However, in democratic nations, such issues are at least addressable by the populace.

  8. For alternative approaches see, e.g., Dietz and O’Neill (2013) and Jackson (2009).

Abbreviations

ESOP:

Employee Stockholder Ownership Plan

MSI:

Multi-stakeholder initiative

NGO:

Non-governmental organization

RSPO:

Roundtable on Sustainable Palm Oil

RTRS:

Roundtable on Responsible Soy

SQF:

Safe Quality Food

WIETA:

Agricultural Ethical Trade Initiative

WTO:

World Trade Organization

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Acknowledgments

I would like to thank Emmanuelle Cheyns, Michiel Köhne, Lone Riisgaard and Anne Tallontire for their insightful and helpful comments on earlier versions of this article.

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  1. Department of Sociology, Michigan State University, East Lansing, MI, 48824, USA

    Lawrence Busch

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Busch, L. Governance in the age of global markets: challenges, limits, and consequences. Agric Hum Values 31, 513–523 (2014). https://doi.org/10.1007/s10460-014-9510-x

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