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Capitalist alienation
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By BÜLENT KENEŞ:




Every day hundreds of analysts comment on the global economic storm triggered by the subprime mortgage crisis, which is gradually crippling all world economies. I will not delve into a technical commentary, as I am no expert on the issue.

However, I am well aware of the frequently voiced argument that just like communism, capitalism has passed its expiration date. But the suggestion that capitalism, which is largely compatible with the human motivation for "earning more at all times" (i.e., human nature), is doomed does not seem persuasive to me.

Here the capitalism I refer to is, of course, not the wild capitalism that does not respect any value or mercy and takes the ambition for earning more to the furthest extreme. What I understand by capitalism is the sort of market economy that is supposed to function properly with a tamed motivation for earning. I have an unshakeable belief that this tame capitalism will never collapse. Nevertheless, how can we define the current global crisis, which is sending shockwaves through the bones of the world's economies and about whose likely results no learned estimate can be made? How can we analyze the causal relations that have led to this crisis? Will we have to divert our analysis to simple determinism? I have no answer that I can come up with for the time being. But I may share with you an observation that I like very much from a successful Turkish businessman who is known to be capable of philosophical thought.

The person in question is Ethem Sancak, whose name has recently been mentioned in connection with the acquisition of the Star daily and the Kanal 24 TV station and who is primarily known as the boss of Hedef Alliance, which controls more than half of the pharmaceuticals distribution sector in Turkey. This businessman, who was involved in extreme leftist movements in his youth, claims, just like me, that what is dying is not capitalism itself, but the illnesses of capitalism. Perhaps under the influence of his Marxist past, he describes the crisis as a sort of "alienation." However, with this alienation, he does not refer to the alienation of labor from production and capital in the Marxist theory. Rather, Sancak talks about the alienation of wealthy people in Western countries from the capital they own. As this is against the very nature of capitalism, he argues, capitalism is trying to repair this deviation from its nature.

"In the West, the relation between wealth/capital and its owners has been disrupted. Entrepreneurs and capital owners have relegated all affairs to professional executives and, in a sense, they have gone on holiday. However, professionals do not feel the sweet taste of earning or the bitter taste of losing as strongly as entrepreneurs. Now capitalism is recuperating and is calling on entrepreneurs to take back the helm that they have abandoned. Thanks to this crisis, entrepreneurs and capital owners will return to their own businesses," he argues.

Just like any other generalizations, this one, too, suffers from certain flaws. But viewing this crisis from such a perspective does not sound unreasonable. Sancak nurtures the optimism that this crisis will not affect Turkey as comprehensively as other countries and explains this optimism, consistent with his thesis, with the fact that Turkish businessmen have never relegated all of their businesses entirely to professional executives. "As Turkish businessmen, we are always at the helm of our businesses," he says. If we agree with this argument, then will we have to admit that many Turkish companies we tend to criticize for their avoidance of employing professionals with extensive powers because they prefer to be family businesses are advantageous in the current global crisis. In the final analysis, we all know that, unlike their Western counterparts, Turkish businessmen tend to be at the helm of their businesses, contrary to the dictates of emerging MBA trends.

Sancak's other analyses of the crisis do not stray far from the mainstream ones we hear every day. However, the way he conceptualizes his analyses is quite interesting. Denoting the current crisis as the death not of capitalism, but of "cyberneticism," a flaw within capitalism, Sancak claims that the real economy will see a big jump with the return of entrepreneurs who will turn away from virtual wealth as the real economy and production sectors reclaim their place.

Like other Turkish businessmen who justifiably take pride in having acquired immunity to economic crises due to the frequent meltdowns experienced by Turkey, Sancak preserves his optimism despite the global crisis and advises businessmen to focus on those aspects of the crisis that bring opportunities. He stresses that emerging countries and companies make their biggest strides in times of trouble.

Time will tell whether this divergent and interesting view of the global crisis is really correct, or if it is a form of Pollyannaism.


todayszaman

October 24, 2008 | 8:47 AM Comments  1 comments

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