Populist policies propel Western nations towards governance crisis

Observers of elections in Western industrialised nations may have noted a worrying trend: these societies appear to be steering towards a prolonged governance crisis. The practice of democracy, originally a means to serve the public good, has increasingly become an end in itself. This shift has led to populist policies that only exacerbate the crisis.

Take France and Britain as examples. In France, recent elections have resulted in a governmental impasse, highlighting political fragmentation and a dwindling collective resolve to address pressing societal issues, particularly economic challenges.

Meanwhile, in Britain, recent elections saw a surge in protest voting, favouring the Labour Party not for its economic policies, which are already faltering, but rather as a rebuke to the Conservative Party, preferred historically preferred governance.

Both countries are facing severe economic crises, largely due to political mismanagement. In France, the public debt has soared to 110.7 per cent of GDP, while in Britain, it has reached 99.8 per cent — a figure last seen in 1961, shortly before the country acknowledged the end of its empire status.

Burden for future generations

France’s economy began to decline following the loss of many of its colonies, particularly in West Africa, where they fell out of French influence. Both societies experienced a phase of prosperity, benefiting from their governments’ control over resources, either directly or through proxies.

However, political leaders chose to avoid the reality that necessitates tightening belts and aligning productive capacities with living standards. Instead, they opted to sustain a lavish lifestyle through extensive public debt, passing the burden onto future generations.

The democratic process has evolved into a formula where winning and maintaining power requires pandering to public sentiment, often disregarding economic principles that warn of the dangers when public debt surpasses 50 per cent of total national income.

Future projections suggest that if France’s right-wing government implements its economic policies as stated, the country could face a fate similar to Greece’s severe economic crisis years ago. Greece was on the brink of becoming a failed state until intervention from the European market, particularly Germany, salvaged its economy. Given France’s larger economy, any crisis would pose a greater challenge to rescue.

In Britain, despite the Labour Party’s election pledge to avoid tax increases, it is likely to raise taxes, starting with high-income individuals. The initial months under the new government may resemble a honeymoon period, but public discontent is expected to surface soon. The July 4, 2024, vote might soon be followed by demonstrations expressing disillusionment with the party’s decisions.

Advocating 'border protection'

Historically, Western societies prospered through their overseas territories rather than superior management alone, even employing people from their African and Indian colonies in their wars. 

Britain’s departure from the European market was driven by populist pressures advocating “border protection,” relinquishing numerous economic benefits such as affordable labour from Eastern Europe.

This shift contributed to rising prices and reduced agricultural output, despite opposition from economic experts, the Central Bank governor, and former senior politicians — Labour’s Tony Blair and Conservative’s John Major.

The current Prime Minister, Keir Starmer, appears to be considering a form of re-engagement with the European market. However, the terms for re-entry could be far more stringent than before, and it remains uncertain whether his overtures will be accepted. Previously, Britain enjoyed unique privileges within the European market that were relinquished due to populist pressures.

A key takeaway from these challenging times is that societies cannot sustain themselves indefinitely beyond their means to produce wealth. Relying on the prosperity of others is merely a temporary solution that loses effectiveness as soon as those others recognise and claim their own wealth.

Unfortunately, this fundamental truth is often overlooked by politicians, who instead choose to finance their policies by borrowing against the future, ensuring their tenure at the expense of coming generations.

Closing thoughts: Politicians only focus on the upcoming election, whereas statesmen prioritise the well-being of future generations.

Mohammad Alrumaihi is an author and Professor of Political Sociology at Kuwait University