Feb 18, 2025
On a New Social Contract in a Savage World - Adib Nehme
Adib Nehmeh
ِِExpert in Development, Social Policies & Combating Poverty

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Adib Nehmeh

On a New Social Contract in a Savage World - Adib Nehme

 


Context 

 

On February 12th, 2025, I have participated in a virtual conference organized by the International Labour Organization on "The New Social Contract in the Middle East and North Africa," focusing on workers' rights and providing decent work opportunities for all amid the multiple crises sweeping the world and our region. The session I have attended, addressed the question of identifying "the most important factors hindering the establishment of economies that provide decent work opportunities for all, and its connection to the macroeconomic framework and the multiple crises." 


Below are some thoughts and reflections that have aroused from my participation in this conference. 


 

Opening Scene 

As the curtain rises on President Donald Trump's office, unveiling Mr. Elon Musk to his right and a journalist. The journalist asks: "Mr. President, What do you think about the social contract?" The answer comes quickly: "This is a very old idea that has nothing to do with the modern era. I don't really know who invented this idea and when, but it probably came to us from the ancient world (Europe) hundreds of years ago (of course, we don't expect him to know about the Enlightenment and its thinkers who contributed to shaping this idea, such as Rousseau, Hobbes, Locke, and others) ... In fact, I don't fully understand what any social contract means! I've never heard of such a type of contract." He adds: "Perhaps this was something invented by a leftist or extreme environmental group that wants to undermine the freedom of capital and the leading role of great America in steering the global economy."  

 

The scene has ended.

 

 

The Social Contract

The emerging form of "savage globalization," which began to take clear shape with Donald Trump's arrival at the White House and the enthusiastic celebration of the global far-right, constitutes a complete annulment of the idea of the "social contract" and its philosophy. Such ideas, generated in the "Age of Enlightenment," are considered by proponents of savage neoliberal globalization as extinct beings and "weeds" that must be removed because they harm economic growth and hinder the full momentum of unrestrained utility values, driven by the emerging savage global system to its utmost limits. On this basis, the struggle for a new social contract is considered as a global battle aimed at preventing the eradication of this very idea from the economic and societal relations. In this sense, it pertains to the essence of the system of values and the racist and violent choices that despise all rights, except for the right of those in power and wealth perched at the top of the economic and political pyramid, in order to maximize profit and control the world. There is no place for a social contract among societal parties based on equality and recognition of the mutual right to defend divergent or conflicting interests, while doing all efforts to reach dynamic historical compromises between these interests.

 

The social contract is often emphasized as a contract between governments (or authority) and citizens. This is true, but it is only considered so in a subsequent moment to the actual contract that is formed through struggle/strife/ and negotiation among social components, and their political, union, and community expressions at the base level of the society itself, It is than transformed in the next moment into a written relational framework (constitution) institutionalized in political systems, resulting policies that seek to translate the principles and orientations of the contract and the mutual obligations contained therein into an actual reality. This does not occur in a single, definitive moment, but rather is a dynamic process of struggle and shifting balances among the interests and choices of various social formations.

 

 

 

What prevents a fair economy and a decent work?

 

As usual, there are always obstacles primarily stemming from the nation-states themselves and their policies, along with regional influences. There are other factors arising from globalization and the policies that shape the features and directions of the global economy, which in turn is a critical and determining factor in regional and national policies. At this specific historical moment, global contexts are the most important and defining factors, constituting the main obstacle to economic and social development in our countries, including the provision of decent work opportunities for all. This does not in any way exempt national governments and their policies, as well as the social and economic forces behind them, from responsibility; rather, the subservient surrender to global trends amplifies their responsibility instead of diminishing it.

The deep and core reason for the inability to build a fair and inclusive economy that achieves decent employment for all, lies in the fact that achieving this goal requires an approach, choices, and a social-historical carrier that all go in the completely opposite direction to the neoliberal globalization trends that have prevailed since the 1980s; they are in stark contrast to the emerging global trends led by the far-right, particularly under the leadership of U.S. President Trump. This new formula is characterized by the return of protectionist tendencies and trade wars among the current poles of globalization (including, and led by, China at this time), as well as by violence, savagery, colonial tendencies, and a complete departure from the global governance system that was established after World War II. What the world has witnessed in the recent years, including our Arab region, and the genocide occurring in Palestine—specifically Gaza and the West Bank—extending to Lebanon and the broader region in 2024, is a stark testament to such a transformation (without neglecting what is happening in other parts of the world, including the capitalist core countries themselves).

 

This transformation poses fundamental challenges and issues, as it is no longer possible to confront these choices and their consequences by adhering to previous strategies, and remaining within the prevailing institutional frameworks. This is no longer sufficient, and in some cases, it is no longer effective or appropriate; thus, it is essential to seek alternative and effective confrontation strategies capable of curbing the rampant colonial and neoliberal savagery in its new form in order to push towards changing the current reality and addressing the crises it generates, and overcoming these crises successfully, or at least with the least amount of losses.

 

They create the crisis and design the response to it!

The leaders of globalization manufacture crises through their policies and choices; however, they do not stop at that but work to preempt any response to these crises that could be formulated from an opposing or alternative standpoint, which constitutes an act of containment, and even a confiscation of possible alternatives. This is particularly achieved by flooding the research and discussions pertaining to possible solutions to the crises that our contemporary world bears with approaches, ideas, and solutions of their own making, characterized by a technical nature that is intended to imply neutrality and reliance on science. This helps them control the institutions that produce and disseminate ideas and ideologies promoting neoliberal globalization. Additionally, they have created a specific narrative about economic growth, governance, and the causes of crises over the decades since the early 1980s, which many parties treat as indisputable axioms.

 

Some of those who address the issues of the economy and (decent) work in our (developing) countries attribute the cause to shortcomings or failures in the economic governance system or labor market governance. Governance here primarily refers to technical procedures, distancing it from its political component; it does not imply tyranny or the absence of democracy for example , but rather refers to: delays in adopting or utilizing technologies; or the inadequacy of infrastructure and appropriate equipment for digital transformation; or remaining on the margins of scientific and technological revolutions, including delays in entering the digital age, artificial intelligence, and the fourth or fifth industrial revolution... etc.; along with other attractive terms and phrases. There is often reference to the disparity between the speed of global transformations in the labor market and the slow transformations in the governance of the economy and labor market in our countries, which points to the necessity of accelerating the change of the system of laws and regulations governing the economy, labor and labor market in developing countries to respond to global transformations. As simple and straightforward as this conclusion may seem, even self-evident, such proposals are limited to administrative and technical modernization, mechanization, and digitization... etc., without any explicit reference to the political and legal content of such required reforms or changes, which means accepting the entire globalized package that includes dangerous biases in favor of capital at the expense of labor.

 

These proposals overlook the defining features and conditions of the "social contract" in general, and in particular the relationship between workers, employers, and the state, or between labor and capital, at both global and national levels. The discourse on "flexibility" in the labor market within neoliberal rhetoric implies the dismantling of laws and regulations governing the relationship between workers and employers, as has actually occurred over the past decades, leading to: the weakening of the negotiating power of unions; the liberation of labor contracts from laws that protect jobs and workers; a significant expansion of informal work; violations of the commitment to minimum wage standards that ensure a decent living; the abandonment of the idea of comprehensive social protection systems; and the continued failure to assess care work, among other issues. All of this falls within the context of dismantling the "welfare state" and the social and environmental responsibilities of the state, while liberating markets and capital freedom, alongside restricting the freedom of labor mobility, despite the transformation of migrant workers into a highly significant productive force in all countries, which are subject to double exploitation, especially in our countries.

 

In this context, when discussing the necessity of developing economic governance and the labor market, particularly in our countries, the priority must undoubtedly be the governance of  the "social contract" over the relationship between workers and employers, or between labor and capital, more committed to justice and a system of rights, providing more effective protection for workers' rights in a broad sense, in accordance with the diverse forms of work and the transformations that have occurred in the labor market, starting with migrant workers engaged in difficult and marginal jobs to those working in the platform economy. In this regard, the notion of flexibility often refers to the dismantling of regulations governing work and protecting workers (deregulation), which has been the third pillar of the neoliberal trinity since the early eighties, alongside economic liberalization and privatization. The required direction for development is the one that prioritizes rights, which is completely opposite to the deepening of the gap between labor and capital in favor of the latter, as it is effectively implied by the emerging calls for neoliberal good governance.

 

A final thought in this context relates to artificial intelligence and its impact on work, the labor market, and the economy in our countries. There is no doubt that technological development, digitization, and artificial intelligence (regardless of the name and the definition of the latter) directly impact the labor market, its organization, and the characteristics that define it. In the coming years and decades, it is expected that new jobs will emerge while others will disappear, particularly in some traditional sectors where modern technologies provide real and low-cost alternatives, or in some pioneering economic sectors that will be more affected by digitization and artificial intelligence, as well as in service sectors.

 

It is obvious that the countries of the capitalist center, and some of their sectors, will be more affected by this than developing countries, for example. Therefore, merely replicating this discourse by some officials, business owners, or other stakeholders in our countries does not take into account the characteristics and problems of our countries and economies, as well as the nature of work and the labor market within them. For instance, we can point to some calls that echo here and there about the necessity of entering the fourth or fifth industrial revolution in countries that have barely completed the first agricultural or industrial revolution. Additionally, the impact of digitization and artificial intelligence in countries where the informal labor rate ranges between 60% and 70%, for example, and in sectors with low productivity, along with underdeveloped digital infrastructure and a low and inadequate educational level in terms of quality... etc., cannot be similar to the effects of digitization and artificial intelligence in countries where these technologies were produced and are widely and significantly used in production and in managing society; we must seriously examine their impact in our countries, away from simplistic projections and replication.

 

 

Polycrisis

 

The closest translation of this new term that has entered the global discourse is "one crisis in crises," or "multiple crises in one crisis." It is not a collection of adjacent and overlapping crises that our contemporary world is enduring, such as the climate crisis, economic crises, geopolitical tensions... etc. However, in its common usage, it remains a limited concept because it assumes that the current crises have emerged simultaneously across various aspects of life and the world, and that their coincidence has affected the core of the global system governed by neoliberalism. This means that the act of crisis/crises moves from the outside to the inside, from the peripheries of the system to its center, and from the multiplicity of crises manifesting in different sectors and fields to the heart of neoliberal globalization and its macroeconomics.

 

This is a partial and limited approach. While the trajectory of crisis from the outside to the inside may be correct, the more important and influential dynamic—the dominant and prevailing one—is the one that originates from the center of the system and its core, namely the neoliberal macro economy, towards its multiple manifestations, not the other way around. These multiple crises (climate, recession, war, marginalization, inequality, etc.) are primarily manifestations and outcomes generated by the structural crisis of the globalized neoliberal model that has been dominant since the early 1980s, and from its macroeconomic model in particular. This model has reached its historical limit, and surpassing it has become a necessary and urgent matter to save the planet, people, and nations from the looming disasters, starting with climate change, to economic recession and the shift to a fictitious economy, leading to genocide, and the proliferation of triviality and the destruction of the value and standard system expressed by the human rights framework, along with the international mechanisms entrusted with enforcing it, from the United Nations to all other global mechanisms and institutions.

 

The current conception of the macroeconomic and social options that are being shaped and expanded by the extreme global right in response to the crisis of the prevailing neoliberal globalization model since the 1980s includes a shift away from some previous options and policies, a return to national protectionism, fanaticism, trade wars, and the use of war as a means of diplomacy in international relations, as well as the dismantling of the international system that was established after World War II. All of this is pushing towards creating a global situation similar to what existed before World War I (and II), accompanied by global chaos and a violent and savage colonialist tendency. Such situation is forcibly driving the world towards a cosmic catastrophe, propelled by the interests of the 1% who monopolize money, power, violence, and media, under the leadership of the extreme global right, headed by the new American president.

 

Is it possible to confront?

Of course; and the chances of success are likely, if not certain. However, the question at hand is how to minimize the cost that the planet, the world, and its peoples will pay before putting an end to this brutal madness and returning to global paths that include the necessary commitment to the human rights framework, with the goal of maintaining global peace and halting the path of planetary destruction.

 

A fundamental aspect of success depends on the global and national consensus that partial and side solutions, which focus solely on outcomes rather than the causes and dynamics that generate crises, are no longer sufficient and are a waste of time and effort. It is essential to declare the failure of the neoliberal globalization model that has prevailed since the 1980s, but not in order to impose new, more brutal models as required by the extreme global right and its colonial and racist tendencies that we are currently witnessing. The failure of this model and its new version, more brutal and trivial forms means moving towards an alternative model that restores the significance of the human rights system, its values, and standards, including the right to development and self-determination, as well as democracy, social justice, equality, and the protection of our planet—our shared home—from systematic destruction due to unsustainable patterns of production and consumption. This dual conviction of:

 

a- The failure of the neoliberal model due to its nature and its increasingly brutal consequences,

b- The necessity of moving towards an alternative that commits to human rights, justice, democracy, and the protection of the planet and its peoples;

 

It is the starting point for the formation of a global alliance, with national components and extensions, in the path of emerging from the current existential crisis and its manifestations in the realms of economy, society, environment, labor, culture, and values.

 

 

 

Adib Nehme



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