Governing by Network is tantamount to Corporatism

An Article by:

Russell Cole

The purpose of this essay is to bring scrutiny to an alarming trend in American governance. This growing practice is propounded by differing groups in our society, ranging from the neoconservatives to the quasi-academicians occupying fellowships at the politically moderate Brookings Institute.

In a publication produced by members of the Brookings’ Institute, the emerging practice has been labeled with the following expression, “Governing by Network.” This philosophy of governance looks to institutions and organizations outside of government in order to outsource the work of government; thus, privatizing many of the functions that would, otherwise, be implemented by governmental agencies and the civil professionals who work under their auspices.

The purpose of this brief essay is to refocus this governing philosophy through the lens of an entirely different interpretative framework, in order to bring to the fore some of the alarming outcomes that might result from this practice of outsourcing government. I will make the case that governing by network is tantamount to corporatism, and, therefore, poses a threat to the already compromised democracy that we, as Americans, have historically struggled to enact and, presently, continue to enjoy; although in recent years our democratic system of polity has suffered a flurry of incursions made by the current Imperial Presidency.

At first glance, this might appear to be a sound policy. Looking toward corporations in the economy and NGOs in civil society might provide a means by which to rely upon organizations in society that are already specialized in particular types of operations, making them more efficient and effective agents for carrying out the missions underlying government initiatives. In the language of neoconservatism, privatizing the military, for instance, will make America’s war machinery subservient to the pressures of the market; subsequently, ensuring that America’s mechanisms for carrying out its foreign policies that rely upon militarism are the most fit for that purpose.

This whole arcade of mercenary contractors waging war in Iraq is by no means an ad hoc appendage to the military proper, whose idea and implementation were incited solely from the contingencies of the Iraqi campaign. Rather, the privatization of the military had been, from inception of the Bush Presidency, a guiding-principle for Rumsfield and his efforts to reform the American military complex. From the beginning of his tenure as the Secretary of Defense, Rumsfield had been working with his favored contacts in the private sector in order to facilitate the outsourcing of many of the functions of the military and the Pentagon; thus, increasing the role of private contractors in America’s military affairs. This protracted endeavor to outsource as many military operations as possible was part of a metaphorical war being waged against the military bureaucracy; a complex – according to Rumsfield, and in accord with neoconservative thought patterns – of obsolescent bureaucratic institutions, which burdened the American state with inefficiency, resulting in governmental waste.

There are, of course, manifold examples to cite when it comes to illuminating the concrete manifestations of the emergent doctrine, governing by network. To cite a more seemingly benign example, Bush’s policy of funding faith-based organizations for the purposes of providing social welfare services to the dependent and needy constitutes an instance of governing by network, because it involves integrating organizations that exist in civil society into the operations and functions of government; relieving the state from the encumbrance of constructing the institutional architecture required for it to perform these tasks on its own.

Although, prima facie, these uses of the private sector to facilitate the execution of public policies might appear innocuous and, even, pragmatic. Nevertheless, there is a more sinister dimension to these practices, which reflects a motivation possessed by the adherents of this public policy philosophy that needs to be rendered transparent, so that the full scope of consequences brought about by governing by network is apparent to the American citizen.

In the initial paragraph of this essay, I pointed out that the privatization of governance can alternatively be referenced under the term, corporatism. By this, I am indicating that the privatization of government will have the entailment of creating a political system in which the distinctions between polity and the economy are effectively blurred; resulting of the integration of the economy, along with the elites who control it, with the institutions and decision-making mechanisms of government. I say this because private entities in the economy can just as well affect the policy making processes belonging to the politic sphere of society - and will have a much greater incentive to do so if government is outsourced – through interventions such as their corporate lobbying and the campaign donations extended to politicos by corporate elites – as can the body politic impact upon the firms in the economy through the adoption of government policy.

Therefore, by privatizing governmental services, we run the risk of having corporations influencing what policies will be implemented by affecting political decision-making outcomes in an attempt to ensure revenue through governmental contracts. This networking of polity with the economy and civil society will precipitate working relationships among the agencies in all three of the affected social spheres: polity, civil society, and economics. Resultantly, the policies taken up by government might reflect the economic interests that stand to benefit from particular policies; rather than having government policy address the needs and desires of the populace; members of society who do not necessarily possess the wealth and influence to countervail the corporate interests that stand to profiteer through particular types of policy implementations. In short, the government and the economy will merge into a union whereby policy and the motivations that underly it will be identical with interests emanating from the economic sector and from the advocacies associated with NGOs in civil society; a collection of non-governmental agencies that stand to benefit by virtue of the contracts that will ensue from the networked administration of public policies.

There is an even more alarming aspect to the consequences engendered by governing by network: The constitutional protections that restrict governmental interference in the private and civic affairs of citizens can effectively be circumvented by implementing the policies of government through the employment of private institutions that are not beholden to the same limitations imposed upon government by the Constitution. This is what makes the discussion among neoconservatives so disconcerting, in which they are presently entertaining the prospect of outsourcing domestic intelligence gathering to private firms who will then be entrusted with spying upon American citizens.

This plan that is being advanced by the in-member ideologues of the current Administration in conjunction with their sympathizers and consultants occupying positions in various neoconservative think-tanks, if allowed to materialize, will result in more than the “soft fascism,” described by Ron Paul in his warnings about corporatism; it presents the possibility of effectively imposing a rather profound and extensive form of authoritarianism upon the American public. We will be subjected to the unfettered intrusions and spying eyes of private entities outside the constraining parameters that have been, heretofore, erected by Constitutional Rights. We will have to fear with whom we associate and with whom we transact communications – let alone indulgences in vice; or contributions to radicalized political advocacies – because we will have no expectation that we can maintain any seclusion of these activities in the sense that we will not be able to conceal information and curtail knowledge about our engagements, as private citizens, from institutions who might react punitively if presented with such renderings of our social activities. When in the hands of private firms conducting domestic intelligence gathering, what is to stop our employers from purchasing such information in order to assess our interactions outside of the workplace, so the firm can successfully impose a lifestyle – through the threat of occupational termination upon those who deviate – that they deem appropriate for those assuming positions in the ranks of their employment.

Consider, even, the current push to centralize and digitize our health records. Of course, they attempt to assuage our concerns by emphasizing the improvements to the administration of health care that will be actualized through the availability to health care professionals of an archive containing our complete medical histories that can be instantaneously retrieved via information technologies. However, what other possibilities will be enacted through the creation of such a repository of personalized information regarding matters of our biographies that we consider to be, oftentimes, sensitive and highly private? Might we be obliged by potential employers to permit their human resource agents to investigate for what we have received treatment by physicians and when that treatment was administered? For some us, we risk even having to disclose out relationships with psychiatrists and other practitioners of mental health care. Additionally, through the nexus between the economy and polity that will be formed under the conditions depicted in the not so distant futurism that I am detailing, what recourse could we possibly have to prevent government agencies from obtaining the health records that will already be in the hands of corporations with whom government will have working relations? The rights to privacy that were referenced by the attorneys entrusted with the criminal defense of Rush Limbaugh will not be violated, they will simply be circumvented, bypassed, through the creation of cooperative enterprises involving both law enforcement and private entities in the economy or, perhaps, civil society, which might have access to personal medical records.

It is important to stress that the argument that I am making is not a polemic advancing a position in support of expanded government. However, I am quite explicitly warning against solutions to “Big Government,” that advance an agenda of privatizing government operations by outsourcing their functions to corporations and NGOs. The best remedy for inflated bureaucracy is the diminution of government and the services that it provides. The very worse trajectory in our social development would be pursuing the path followed by the ideologues in the Bush Administration, who are quite actively working to expand the powers of the Presidency; an expansion of authority that is leveled at the peril of civil liberties.

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