Why Populism Is Rising And How To Combat It – Forbes

Readers relax, I'm not going to talk politics. I would however, like to discuss an old political phenomenon that is making headlines the rise of populism around the world. Far from a one-off occurrence, it is an alarming trend that requires drastic action. We should not ignore populism, since it is highly contagious, shapes political systems and induces other politicians to adopt its methods and means.

Every continent has its share of populist movements, both right-wing and left-wing, but only some reach a critical mass of power, while others remain on the sidelines. The term "populist" is frequently used as a political weapon to show disdain for a policy, even when it does not quite fit the definition. This is because populism is not just a movement: it's a strategy that nearly all political parties wind up using, either out of a sense of conviction or out of pure necessity.

What is populism?

There is disagreement on this point, but we can define it in broad terms. At the root of populist movements is a delineation between "normal folk" and "the elite." For example, "We" are the people and "they" are the ones who cheat, control and subjugate us, along with their supporters. These concepts are impossible to define in clearer terms because they don't reflect objective realities. More than anything else, the divide is grounded on identity and emotion that stem from making a sharp distinction between friend and enemy.

Other key characteristics include:

Politics are based on emotion to generate a feeling of affective identification.

Intellectuals and experts are viewed with suspicion because of their ties with the elite. Their words are perceived as skewed and biased.

The idea that the general will should prevail. Since representative democracies use intermediate structures, such as representatives and political parties, the will of the people should be abided. Liberal institutions (the separation of powers, the neutrality of state institutions, the defense of political and media pluralism) are no longer useful.

Anyone who disagrees with the body politic should be spurned and, if necessary, intimidated. Those who try to stabilize political institutions will hinder the advancement of populism.

Actions are channeled through provocation and protest. It is argued that dialogue no longer makes sense since it is controlled by the elite.

Conflict reigns in populist strategies. The liberal democratic system has always tried to conceal conflict (either because of lack of interest, because they don't know how to tackle it or because it is not considered media-worthy). In populist movements, the reverse is true: now it is important to accentuate every conflict and wrap it up tightly in an emotionally charged bundle.

Populism is normally, though not always, triggered by a charismatic leader who articulates the collective anxieties of the people.

It is also important to note that while problems relating to ethnic minorities or immigrants are sometimes (but not always) relevant to populist movements, populism is not necessarily xenophobic.

What is behind its rise?

Economic downturns and the perception of crisis. Economic crises are characterized by inequality and unemployment rates, but also encompass other phenomena like globalization (the perception that foreigners are stealing our jobs), technology (which favors the wealthy and better educated pockets of population) and social welfare cuts, among others.

Collective frustration and anxiety. This angst may be summed up as follows: We did everything right, we went to school, worked hard and now we're unemployed. We won't be able to collect retirement benefits and our kids won't come close to doing as well as our generation.

Increased inequality: the rich get richer and the poor get poorer. The sentiment is that the super wealthy rig the system to make sure their children stay rich, which ruins any chance of upward mobility for the rest of us. This might not be entirely true, but it does not stop people believing it.

There are also deeper factors at play:

Complexity in social constructs has increased and citizens feel unsettled.

Public spending has become technocratic.

Corruption, an overall lack of transparency, and the machinations used by political parties have caused government institutions to lose credibility and legitimacy.

Campaign promises often bear little resemblance with the work that's done post-election. This might be because important decisions are made at higher levels (e.g. Brussels or Washington) or the result of a silent consensus among the controlling parties.

What can we do?

To the extent that it donates a breakdown in the liberal democratic model, populism is not likely to disappear any time soon. It could lose steam, however, if the underlying problems highlighted above are resolved. The following recommendations (although voiced without much enthusiasm) are ways to try to tackle its spread:

It is time to revise our macroeconomic, taxation, industrial and commercial policies. This is true for both countries and companies. It's not a question of rising salaries or being more generous with unemployment benefits, it's about exploring how we can develop strategies that don't cause unnecessary damage.

It is important to acknowledge that globalization, technological progress and tax reductions elevate the quality of life of society as a whole; but in the short term, they deliver a direct blow to certain pockets of the population, especially in rigid labor markets that hinder the unemployed from quickly finding a new job. Someone needs to break the news that not everyone's standard of living will continually rise and that some peoples net income will remain stagnant for years on end. Otherwise we have this situation where, say, a business owner tries to multiply sales year after year, or a management guru or economist in search of media attention claims GDP growth should be the ultimate aim of government policy without ever stopping to think the negative ripple effects that this measure could unleash.

By Antonio Argandoa, Emeritus Professor of Economics and Business Ethics at IESE Business School

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Why Populism Is Rising And How To Combat It - Forbes