CAPITALIST
THEORY OF
CORRUPTION
The
theory - first proposed. by George Hiram
Arbuthnot1
- that corruption has been a prime ingredient of human progress and
remains an elemental component of economic development in capitalist
societies.
Oxford’s famed dictionary defines corruption as moral
depravity, but Arbuthnot disagreed, arguing that murder, abandoning
children, and spreading AIDS were morally depraved but we
wouldn’t normally describe them as corrupt. The
definition he proposed was the acquisition of power or material
advantage through a betrayal of trust; and he gave some intriguing
illustrations: lobbying a politician was permissible, murdering him
illegal, bribing him corrupt; impartiality was desirable, favouritism
inevitable, nepotism corrupt; and so on.
Corruption has probably always been with us, but Arbuthnot was not
concerned with tracing its origins or assessing its role in
human psychology. His aim was to expose it as one of the fundamental
pillars of our way of life.
The
corrupt, in his view, have always been the breakers of moulds, the
iconoclasts, the novel thinkers and doers, the darers, the explorers
and the ruthless. Cortés conquered Mexico by lying to his
host2,
taking him prisoner and destroying his realm3.
Pizarro performed the same feat in Peru. England lied and cheated her
way to domination of half the world with the help of God-fearing
puritans like those who set out to occupy North America.
Not
everyone, even of their own kind, thought the pilgrim fathers such
respectable creatures. “’Tis a great
misfortune,” writes one of them, “that most of our
travellers who go to this vast continent in America, are persons of the
meaner sort, and generally of a very slender education.”4
Locals - the inaptly-named Indians - treated the newcomers
well until their hospitality was repaid with such cheating, hostility
and viciousness that they could do no other than try to repel the
invaders. “They really are better to us than we are to
them,” our author continues, “...they always give
us victuals at their quarters and take care we are armed against hunger
and thirst; we do not so by them, but let them walk by our doors
hungry....We look upon them with scorn and disdain, and think them
little better than beasts in human shape, though if well examined, we
shall find that, for all our religion and education, we possess more
moral deformities and evils than these savages do or are acquainted
withal.” One is reminded of Rudyard
Kipling’s pithy appraisal:
“You’re a better man
than I am, Gunga Din”
By the
time Lawson wrote up his travel adventures in the Carolinas, the
natives he described had seen their women raped, their sons enslaved,
their villages burned, and vast tracts of land sold from beneath their
feet “...in consideration for valuable parcels of
cloth, latchets, beads and other goods...”5
Property
prices in the Carolinas have shot up since then.
“The conquest of the earth,” opined Conrad,
“which mostly means taking it away from those who have a
different complexion or slightly flatter noses than ourselves, is not a
pretty thing....”6
Arbuthnot’s familiarity with the details of colonial conquest
led him to suspect that modern capitalist societies stood on
corrupt foundations - an idea that he was to spend most of
his academic life examining. His research focussed
primarily on the period of fully-fledged capitalism,
roughly from the late nineteenth century to the present. With
the help of an admiring coterie of radical students - who idolised him
- he assembled a unique collection of case studies on corporations that
had benefited from corrupt practices. Regrettably, like Freud with many
of his patients, he was obliged to conceal the
identity of those he studied to protect himself from ruinous
litigation, which meant that his results could not be independently
verified. Even so, he spent much of his life at PISS fighting off law
suits from firms and individuals who claimed to recognize themselves in
his work.
One of
Arbuthnot’s most celebrated cases involved a firm he called
International Home Machinery (IHM) which began life as a manufacturer
of domestic refrigerators. The company was founded by Irving Mountebank
and Eric Pilfer7
two former shop floor operatives at Thornton Refrigerators which was
then the dominant brand in the US market. IHM succeeded in establishing
a toehold in the market but then found itself losing ground as Thornton
reacted to the competition by increasing its advertising, bribing
retailers with loyalty discounts and launching a price war potentially
ruinous to IHM. Mountebank and Pilfer, who had taken IHM public, sold
out when the going got rough, and in their place the Board appointed
former travelling salesman Bert Advent as president. Advent’s
qualifications for the job were unimpressive but he was known to be
hard-nosed, ruthlessly competitive and unafraid of ethical compromise
in pursuit of a sale. His plan to topple Thornton was ingenious. He
launched an IHM product range identical in every detail to
Thornton’s best selling lines - even down to the labelling.
No casual observer could distinguish between the machines. Even
retailers thought they were selling Thornton product. Only one problem:
the IHM copies had built-in flaws: motors
overheated, cooling pipes leaked, doors fell
off, thermostats failed. A few months after
Advent’s faulty copies reached the stores, complaints began
flowing in. Before long, the press smelled blood: Thorntons, they
hinted, was in financial trouble and in order to save money was
compromising on product quality. The firm reacted quickly, offering a
free replacement to every dissatisfied customer, but its reputation was
shot. Sales plummeted, the stock price nose-dived, and within a couple
of years IHM had bought out Thorntons and effectively closed it down.
IHM went on to become the largest and most trusted refrigerator
supplier in the world. According to Arbuthnot, IHM’s story
demonstrated how ingenuity in the service of corruption can give
dynamic firms the edge in competitive markets.
That this
is well understood in the world of commerce will be clear to any
attentive reader of the business pages of the serious newspapers which
are riddled with hints, suggestions and occasionally - where the
evidence is clear - accusations of malpractice by company executives
and government officials.
Early
objectors to Arbuthnot’s theory pointed out that if he was
right, then capitalism would be at its best in the most corrupt
societies - a patent absurdity. But Arbuthnot responded that
this was a misunderstanding. Universal corruption simply ruined
everyone and produced either chaos or its obverse, repression and
tyranny - circumstances directly opposed to the stability needed for a
properly functioning market economy. Capitalism, by contrast, required
most corporations and most of society to observe the unwritten laws of
honesty and integrity. Few prospered in the long run; but their general
probity was what allowed the creative few to bend the rules; and what
gave rise also to the commodification and exploitation of labour, and
to the triumph of wealth concentration over wealth distribution, of
resource extraction over environmental conservation, of Mammon over
Mankind.
Arbuthnot himself was a complex and somewhat eccentric figure. Born in
South East London, the son of an Ethiopian father and Vietnamese
mother, he grew up in a multi-ethnic community of working-class,
first-generation immigrants and refugees. His fascination for languages
and the use of language began early; and his mixed racial origins gave
him entry into many different ethnic and social groups in the area of his
home. By the time he won a scholarship to Oxford - only the third to do
so from the inner-city school he attended between the ages and twelve
and eighteen - he was fluent in Amharic, Vietnamese and French as well
as English, and had acquired the rudiments of several other languages
including Punjabi, and Polish. He met his wife Greszyna at Oxford where
she was employed as a college cleaning lady. She later, of course,
became one of the most successful plastic artists of her generation as
well as a noted actress and founder of the influential
Art Renouvelé movement of the sixties. Commenting on the
marriage after his wife’s death in a car accident at the
early age of fifty-eight, Professor Arbuthnot had this to say:
“Greszyna and I made love the first time she came to clean my
room at Oxford. And we made love an hour before she died. Throughout
thirty-four years of mutual support and companionship, we never tired
of bonking each other. It was the basis of our relationship. Men dream
of having a sexual companion like Greszyna, and I was lucky enough to
have the dream fulfilled. If I have ever in my life attracted envy, she
was the reason."
After taking a
brilliant first in Amharic language and literature8 and gaining a
fellowship at All Souls, Arbuthnot came to international prominence
with two books, “The aetiology of allophylian languages - a
study in the decline of meaning,” and its sequel,
“From multicolour to monochrome”, a historical
analysis of the impact of language on vision which concluded shockingly
that, after a long efflorescence between the dawn of history and the
mid 1950s, our imaginative and intellectual horizons, as reflected in
what we say and see, are now shrinking at roughly the same rate as the
polar ice caps.
Arbuthnot would probably
have remained at Oxford had it not been for the commotion that followed
this second work, which aroused a volatile blend of controversy and
ribald mockery. Students in Oxford demonstrated noisily outside the
gates of All Souls, and hurled eggs at him during his weekly lectures
at the Taylorian Institute. Opinion columns in the media prosecuted and
defended him with equal vigour. Pickets at the West End theatre where
Gryszyna was appearing as Madame Ranevsky shut down performances,
forcing the management to replace her with an understudy. In the end
Arbuthnot gave in to pressure from his university colleagues and
resigned his fellowship.
As so often happens, American academic
institutions proved less squeamish than their staid British
counterparts, and Arbuthnot’s disgrace resulted in
a flood of offers for his services from across the Atlantic.
After a
brief spell as a visiting professor at Yale, he was offered a tenured
professorship at PISS, initially in the department of linguistics. Two
years after taking up the post, in an open letter to the Connecticut
Journal of Palaeography , he announced that he had abandoned
linguistic science, having concluded that the store of meaningful
statements about language was exhausted and replenishment improbable.
The remainder of his life he devoted to corruption - the field for
which he is best known. At first PISS reacted adversely to this
unilateral role change and tried to revoke Arbuthnot’s
professorship; but his employment contract, leak-proofed by New Haven
litigation guru Max Sprackett, would have made the cost of paying him
off ruinously expensive for the institution. Later, Arbuthnot took
delight in recalling PISS’s failed efforts to fire him which
he cited as corroboration of his corrosive view of capitalism.
“I reneged on my contract, but I won anyway,” he
was fond of saying. “I myself am corrupt insofar as
corruption is available to me.”
A new
phase of Arbuthnot’s career now began which eventually led to
a reconciliation with PISS and accession to the Chair of Semiotic
Casuistry which was created specially for him. Over the following
years, he produced a stream of books and monographs, the most important
of which is his seminal “Double Dealing and Double
Dutch” a monumental two-volume attempt to demonstrate that
capitalism flourishes best in societies openly hostile to but covertly
tolerant of corruption. Most of the first volume is devoted to
addressing what he called the “blithe assumptions”
of Max Weber and later Richard Tawney in their attempts to equate the
rise of capitalism with the Protestant Ethic.9 Weber thought
that protestantism sanctioned wealth as the reward of ascetic
devotion to work. Tawney, who disapproved of acquisitiveness, tried to
reverse the equation by positing an accommodation of religion to the
capitalist ethos.
According to Arbuthnot, neither understood the power
in the European Christian tradition of biblical strictures against
wealth. Every Christian in Europe was brought up with the idea that
personal enrichment was sinful. It was easier for a camel to pass
through the eye of a needle than for a rich man to enter into the
Kingdom of God.10
Love of money was the root of all evil.11
He that hastened to make riches should not go unpunished.12 Etcetera.
Jews, who
interpreted their Torah differently, had no problem with believers
getting rich provided they observed the requirement to share a portion
of their good fortune with those who had too little wealth or none at
all (a mitzvah). Hence why Jewish prosperity, which is open and
generous, struck Christians as the moral equivalent of an alliance with
the devil; and also why lovers of gold like Shylock, Volpone, Uriah
Heep, and Scrooge - are counted among the villains of European culture.
Protestants - and puritans most of all - advocated not personal
enrichment but cooperative productivity: work for the good of all. Even
Adam Smith’s invisible hand was supposed to promote the
general welfare.
If
opulence was illicit and its getting corrupt, the desire for it had to
be concealed, or at least cloaked in dark puritanical cloth. And so
riches were best accumulated underground, out of sight of men - and of
God.
In the
United States, home of capitalism, the founding fathers and their
descendants rebelled against their puritanical forefathers (as children
do) and publicly set personal enrichment on a pedestal next to
holiness. But since they remained among the most religious people on
earth, their wealth needed to be justified in the eyes of the Lord.
For, as Orwell noted, “Even the millionaire suffers from a
vague sense of guilt. Like a dog eating a stolen leg of
mutton.”13
No accident, then, that in the United States charitable
donations became big business, for they were a salve of conscience - a
bulwark against the schizophrenic paradox of being at once richer and
holier than everyone else.
By the
same token and for the same reasons, corruption, became bigger, bolder,
and ultimately more ruthless than elsewhere, on a par with the size of
the country and the bluster of its history.
One of
the most interesting sections of Volume II of Arbuthnot’s
great work deals with money-laundering - which he interpreted as a
desire on the part of those who had transgressed in amassing great
wealth to return to the way of heaven and to the path of probity here
on earth. For, he argued, most great fortunes rested on some kind of
skulduggery at their origin, even if with the passing years their
possessors had acquired an aura of graceful respectability.
At the
end of his life, Arbuthnot wrote a series of valedictory essays14, somewhat in answer to
his many critics, in which he explained that far from considering
corruption a necessity of life, he saw no reason why humanity could not
progress happily without it. As a scientist, however, he did not see
himself as an advocate of one mode of being over another.
“People talk to me of morality,” he wrote,
“and accuse me of a dreadful neglect of duty because of my
refusal to condemn the corruption in capitalism. I recognize no such
duty. Human nature is what it is; and insofar as I am human, I share
humanity’s foibles. If that makes me a scandalous reprobate,
a vile apologist for evil, so be it. If the Maker of all things exists,
I can expect shortly to encounter Him. When that moment arrives,
perhaps He will take the opportunity to acquaint me with His
views.”
1 Professor
of Semiotic Casuistry at the Princeton Institute of Semantic Sciences
(PISS) (2012 - 2039)
2 Moctezuma.
3 Tenochtitlan, “the
world’s most beautiful city,” according to the
Spaniards who burned it.
4 John Lawson, A New Voyage to Carolina,
London 1709.
5 Shaftesbury Papers and other
records relating to Carolina and the first settlement on Ashley River
prior to the year 1676,” Langdon Cheves (ed), 1897
6 Joseph Conrad, Heart of Darkness, 1902.
7 All names have been changed.
8 As the only Amharic expert in Oxford, he
was obliged to examine himself and mark his own papers.
9 See Max Weber, Protestant Ethic
and the Spirit of Capitalism, 1902; and R.H Tawney, Religion and the
Rise of Capitalism, 1926
10 Matthew 19: 24
11 Timothy 6:10
12 Proverbs 28:20
13 George Orwell, Essay on Dickens, 1939.
14 Notes for the nether world, Plainsboro
Paperbacks, 2038.
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