The University and the rule of money

In a post from September 2011 on academic activism, boundary-less toil and exodus, I amend a quote from John Holloway to argue that “academics need to consider their participatory traditions and positions, and how they actively contribute to the dissolution of their expertise as a commodity, in order to support other socially-constructed forms of production”. The amended Holloway quote is as follows.

In reality, what the [University] does is limited and shaped by the fact that it exists as just one node in a web of social relations. Crucially, this web of social relations centres on the way in which work is organised. The fact that work is organised on a capitalist basis means that what the [University] does and can do is limited and shaped by the need to maintain the system of capitalist organisation of which it is a part. Concretely, this means that any [University] that takes significant action directed against the interests of capital will find that an economic crisis will result and that capital will flee from the [University] territory.

I then go on to argue that:

Whether or not we agree with Holloway’s point about the state’s implications in the maintenance of a capitalist order, we have seen capital’s increasing control over higher education in the United Kingdom through the Coalition Government’s shock doctrine. The ideological, political drive towards, for instance, indentured study and debt, internationalisation, privatisation and outsourcing means that the University has little room for manoeuvre in resisting the enclosing logic of competition and in arguing for a socialised role for higher education. This means that the internal logic of the University is prescribed by the rule of money, which forecloses on the possibility of creating transformatory social relationships.

I have been reminded of this by Steve Smith’s acceptance of the politics of austerity and his focus on the rule of money in defining a UK higher education that is predicated on competition and marketisation. This reminds me that the leadership we might crave for an alternative form of higher education that is against student-as-consumer and the extraction of value from previously socialised goods like education, is highly unlikely to come from University Vice-Chancellors. GurminderBhambra provides a salutary reminder of that fact in her comment piece on the Sussex privatisation protests, and the disciplinary reaction of University leaders to peaceful campus protest. It is worth re-visiting the demands and calls for dialogue of those involved in that protest, in order to reflect on the courage it takes to stand-up for collective forms of higher education in a set of spaces that are being increasingly enclosed and commodified, and against the cultural space that is increasingly described by business leaders like Smith.

So the question of how to address the realpolitik of neoliberalism, becomes what is to be done in the face of the politics of austerity? What alternatives are possible in the face of the insistent mantras of the rule of money, other than, as Andrew McGettigan does so ably, to follow the money and to show what we risk losing as we enclose and commodify the historic value of a higher education that was constructed socially? In light of the leadership revealed in Smith’s comment piece I return to my posting from earlier this week on memory, profitability, disruption and socialised alternatives:

At issue are the ways in which knowledge and forms of knowing that are created inside the University, MOOC, disruptive-wherever can be liberated or repatriated for global knowing, and against enclosure and commodification. What forms of knowledge, what skills and practices, what ways of knowing, what mechanisms for analysing global problems, can be emancipated and used to define alternative, socialised value forms? To where can they be liberated or repatriated so that they can be used against-and-beyond their private accumulation for profit? How and where do we ignite critical, political pedagogic practices that enable the democratic production and consumption of knowledge and knowing? These are the questions that ought to frame the idea of (disruptions to) higher education, and its contributions to our collective responses to global crises.

In contesting the enclosure and commodification of the university and higher education there is a need to connect the work of protests like those at Sussex, to the work of trades unions, and to alternative spaces like the Campaign for the Public University and to live projects like the Social Science Centre. Possibilities for refusal and for pushing back on issues of both institutional governance and operation are critical. As McGettigan argues, we need to think about the public funding, regulation and governance of institutions and the sector, and to make connections to other educational spaces like the Workers Educational Association and the Co-operatives movement. However, we also need to consider whether a more activist, public and social role for academics is necessary in the face of the restructuring of universities as competing capitals. We might, then, consider how and where students and teachers can dissolve the symbolic power of the University into the actual, existing reality of protest, in order to structure a process of meaningful social transformation? At issue is the autonomy of the University in helping to define such an alternative when its world is increasingly shaped by the polyarchic constraints of money/commodity and market-based consumption.


for the social content of academic labour

I: on social domination

In his Critical Social Theory and the Contemporary World, Moishe Postone argues that:

history, grasped as the unfolding of an immanent necessity, should be understood as delineating a form of unfreedom. That form of unfreedom is the object of Marx’s critical theory of capitalism, which is centrally concerned with the imperatives and constraints that underlie the historical dynamics and structural changes of the modern world. That is, rather than deny the existence of such unfreedom by focusing on contingency, the Marxian critique seeks to uncover its basis and the possibility of its overcoming.’

Postone reminds us that our everyday reality is shaped by labour-power. This shapes the commodities and capital relations that emerge as the concrete products of labour and the objectified forms of social mediation. At the heart of capitalism lies a structure of social mediation that is alienated from us as consumers and producers of the world because our everyday world is shaped by the objective, material reality of capitalist accumulation. The subsumption of labour for the accumulation of wealth means that inside capitalism there is no possibility that the individual, however, entrepreneurial, can be realised as a being for herself. Emancipation inside capitalism is impossible for the person whose very existence depends upon her ability to sell her labour-power as a commodity in the marketplace. The processes and techniques that structure life inside-and-against capitalist work only serve as forms of social domination. Thus, Postone argues:

Although there is a growing shift away from manual labor, the development of technologically sophisticated production does not liberate most people from fragmented and repetitive labor. Similarly, labor time is not reduced on a socially general level, but is distributed unequally, even increasing for many. The actual structure of labor and organization of production, then, cannot be understood adequately in technological terms alone; the development of production in capitalism must be understood in social terms as well.

For Marx, there is a need to understand how the historical subject is alienated from the products of her labour and the labour process itself, and as a result how she is alienated from herself and her species being. This final form of alienation is that of the individual from other individuals, in-part through the instantiation of competition inside the individual-as-entrepreneur and in-part through the denial of the social content of labour. Thus, Marx argued that the recovery of the general intellect or of socially-useful knowledge, science and technology, revealed at the level of society, was critical where it was developed through association with others. The key is co-operative practice that can refuse the material alienation of capitalist work, and that might enable alternatives to be imagined.

II: on labour arbitrage and the assault on academic labour

The realities of globalisation and of labour arbitrage place an increasing pressure on our ability to face-down hegemonic narratives of entrepreneurialism and the self-made nature of success inside education. In a recent post on Globalisation and the University, I argued that academics need to understand the following.

  1. The global processes oflabour arbitrage, whereby technology is used to deskill and discipline global labour, including inside the academy. This stands against the ideal of many educators for the democratic agendas of digital literacy or learner’s rights.
  2. How transnational capital uses the global processes of competition and free trade agreements to discipline transnational labour, through the use of cloud technologies and outsourced services, through workplace monitoring, and increasingly friable labour conditions.
  3. How globalised, neoliberal cultural norms emerge from the objective conditions of capitalist work, and the everyday reality of those objective conditions for those who work in the global South and whose work in the global North is proletarianised. This includes the ways in which universities reinforce those objective conditions and act as institutions of the state in underpinning the agency of transnational finance capital, like investment banks, management consultancies, technology firms, private equity etc..

The critical space around which the continuing assault on academic labour is being developed has been further restructured by two recent developments: first, proposed legislation in California that connects budget cuts and outsourcing; and second, the publication of an IPPR paper on higher education. These two developments form part of the policy/practice backdrop to an interconnected, neoliberal restructuring of higher education for the market. They connect think-tanks and the vendors of educational technology, to the technology-led outriders of educational reform in the sole name of economic growth and value, and to the politics of austerity. In this, the place of academics and their labour is subsumed under the ideas of the student-as-consumer, the need to catalyse an entrepreneurial society in which economic risk is transferred from society to the individual, and the material realities of globalised labour arbitrage.

Thus, Inside Higher Ed reports that “California lawmakers detailed a plan Wednesday to require the state’s 145 public colleges and universities to grant credit for low-cost online courses offered by outside groups, including classes offered by for-profit companies.” Moreover, the Bill “would force all the state’s colleges – from community colleges to the University of California at Berkeley – to reduce overcrowding by allowing students to enroll in dozens of outsourced classes.” The Bill’s sponsor, Democratic State Senate President Pro Tem Darrell Steinberg, “said the bill would reshape higher education”. Budget cuts have reduced “California’s budget-weary public higher education [system’s ability] to meet student demand”, with reports of 500,000 students being turned away.

Zerohedge among others have reported on the realities of the student debt bubble, and I have written elsewhere about the interconnections between education, technology and student debt, and “the structural need for capital to seek out rents or profits from new educational spaces, based on either the reduction in the circulation time of commodities or the creation of new services, applications or information flows.” Inside economies that are addicted to debt, and which are based on a promise of repayments through deregulated, globalised, entrepreneurial zeal, the use of technology to crack open education and restructure academic labour practices is critical. Thus, Inside Higher Ed reports the concerns of The California Faculty Association, the union that represents professors in the California State University system:

We are seeing a whirlwind of new technologies – as well as proposals on how to best deploy them – coming to the fore and as such, it is imperative that we clearly understand what is, and what is not, working. We want to maintain academic credibility and the delivery of accessible, quality public education, rather than chase the latest private sector fad.

Inside Higher Ed notes that “The proposal could meet opposition from faculty worn down by years of budget battles.” Bob Samuels writes about this very point in more detail and focuses on the mechanisms through which this type of political restructuring underpins the outsourcing of academic practices.

Senator Steinberg is pushing a bill that will potentially outsource many of the University of California lower-division courses to outside course provides like Udacity and Coursera. Here we see one of the clearest examples of privatizing a public good. The state cuts the UC budget for years, and then the same people who cut the budget say we should now turn to online education to deal with the mess. Of course they add that faculty will have a say, but the question is which faculty, and can they stop a plan that is supported by the university president, the governor, and now the legislature?

In this view, the social content of academic labour formed inside the University as a space for association is alienated, objectified and subsumed inside the material realities of marketization and private-sector accumulation. The links between austerity-driven education policies, student debt as an engine for business-as-usual, the use of technology to discipline academic labour, and the threats of outsourcing, are used to restructure the relationships between academics and society.

This hegemonic narrative is reinforced by think-tanks through reports that connect higher education to the market and entrepreneur, and a life that can only be described in terms of work-readiness or personal failure. This is clear in the Institute for Public Policy Research’s paper, An Avalanche is Coming. The paper allegedly “challenges every player in the system to act boldly”, although the key player who voice is marginalised is the academic, and this is understandable given the paper’s focus on restructuring academic labour in the face of the material realities of economic growth:

Citizens need to seize the opportunity to learn and re-learn throughout their lives. They need to be ready to take personal responsibility both for themselves and the world around them. Every citizen is a potential student and a potential creator of employment (p. 5).

This is a world described entrepreneurially for work, and for a recalibration of education and its structures for individuated success or failure. The social nature of learning, and the associational opportunities that education affords, are negated because the focus for technology-fuelled universities has to be:

creating value for their students (p. 5)

and this form of value can only be realised inside capitalism for the accumulation of wealth. As a result of this need to create and extract value on an individual level:

The traditional university is being unbundled (p. 5).

Thus, the report focuses upon the role of the twenty-first century University and new, private providers in:

ensuring education for employability?

breaking the link between cost and quality: “In the era of modern technology, when students can individually and collectively create knowledge themselves, outstanding quality without high fixed costs is both plausible and desirable.”

restructuring the entire learning ecosystem to support alternative providers and the future of work. “A new breed of learning providers is emerging that emphasise learning by practice and mentorship. Systematic changes are necessary to embedding these successful companies on a wider scale.” (p. 6)

This focus on outsourcing academic practice and knowledge, private-sector commodification of academic knowledge, and in reducing the costs of academic practice, mean an on-going assault on academic labour. Thus, the IPPR paper asserts that academic autonomy threatens a reduced student experience and creates systemic risk through the tensions innate in academic labour-relations, because:

faculty lead and undertake the research and (sometimes) the teaching, the two activities which drive the key outputs. The relationship between faculty and the organisation itself is fundamentally tense, in a way that is not true of other organisations of intellectual merit. Consultancies, for example, create incentives in which individual consultants are driven by organisational goals. Universities cannot (and should not) do the same. (p. 27)

Moreover, in a world where the teaching of academic stars is globally available:

These scholars are a far cry from the run-of-the-mill faculty making their (often good) living from a combination of teaching, research and consultancy. While the stars may attract the students, these are the people who actually teach them. (p. 27)

Thus, in the paper the hegemony of technology in reshaping academic labour is critical, and this enables think-tanks and consultancies to work with emerging neoliberal public policy like that being invoked in California to “delineat[e] a form of unfreedom” inside-and-against the University. This is laid out through “The ubiquity of information and the near-zero cost of storing and transmitting it means that universities no longer own the monopoly over the expression of ideas in courses. EdX has made many of the courses taught by Harvard and MIT academics available for anyone in the world to use” (p. 38). Critically then, this is about a process of restructuring higher education for the market, and an assault on academic labour through the global processes of arbitrage. Here technological innovation “potentially provide a much more efficient market for teaching and learning than the university ecosystem – and for many people this might be the best way to improve their lives through learning”, and this means that “For traditional universities, a dramatic rethink of how faculty use their time and how they interact with students will be central to future success” (pp. 44-5).

Thus, the costs of a university education, and more especially the costs of academic labour in a globalised market, are underpinned by a narrative that situates education inside-and-for individuated capitalist work, and which reinforces the process of alienation. As a result:

Learning and work are becoming inseparable – indeed one could argue that this is precisely what it means to have a knowledge economy or a learning society. It follows that if work is becoming learning, then learning needs to become work – and universities need to become alive to the possibilities… Since technology can aggregate large amounts of data and communicate it decisively, methods other than the award of the university degree could mark a person as prepared for employment. (p. 52)

III: redeeming academic labour

Thus, academic labour is under assault both inside-and-beyond the University through a focus on capitalist work, rather than socialised living or socialised knowledge or socialised goods. The driver for this is the production/consumption processes of economic growth and the real subsumption of the University inside the material realities of the market. Universities must conform to the neoliberal ideal of the entrepreneur who succeeds in the market or they must be disciplined by external providers like MOOCs:

Economic value creators – in the shape of entrepreneurs – are defined by their ability to effectively turn raw resources into a bigger whole. They are increasingly likely to employ fewer full-time employees and instead outsource key deliverables to those that demonstrate the highest competency in a particular task. This competency is measured by their track record in that task, not by their underlying credentials. People will need to learn constantly and increase their skills. (p. 55)

This is the new normal for higher education in the global North, and the terrain on which academics need to find solidarity and resistance, and then push-back. This terrain in one in which universities will increasingly be driven through competition to find ways to reduce costs, to outsource services and provision, to meet the needs of globalised finance capital including the edicts of bond markets, credit rating agencies and private equity, and to reinscribe their students as present and future customers. At issue is the role of academic and professional service staff unions in critiquing this material reality and in finding alternatives that “seek[] to uncover its basis and the possibility of its overcoming.” Reclaiming labour-power inside the University is one such starting point and it is based on solidarity actions across the global North and the global South. In a space that is being restructured for value extraction against academic labour, spaces for association and solidarity are pivotal.

Over at Music for Deckchairs, Kate Bowles has argued:

At the heart of this two-tier system of elite university providers and mass university markets will be unbundled digital delivery of content, online platforms, locally supported tutoring and proctored testing. And Pearson are standing by with the clinical strength solutions to all the problems. So at the very least, this report is a strong case for higher ethical standards in research and analysis of educational markets by vendor stakeholders. Pearson have an extraordinary conflict of interest here, which is a very weak basis on which to try to gain our trust.

And it’s not a radical proposition: it’s a reheat of every argument being had everywhere about MOOCs, college tuition, university branding, ranking and funding, graduate employability, the emerging Asian markets (which is truly an awful way to think about individual students), young people and technology, the campus experience, the global superstars. The whole minestrone.

What’s missing is a vision for change that any of us would be proud to be part of.

Defining that vision demands that academics seek to reclaim the social content of their labour against the neoliberal processes of labour arbitrage. As Rikowski argues, we need to find and articulate alternatives:

the politics of human resistance is not only concerned with opposing the reduction of education and training to labour power but also holds out for modes of education and training aimed at meeting human needs and opening up realms of freedom. At this point, the politics of human resistance also needs to intersect with a more generalised anti-capitalist education otherwise it embraces only one dimension of the negativity required for progressive social change: i.e. resistance to the reduction of education and training to labour power production – without offering alternative forms of education and training.

The challenge is to take these social struggles that exist inside-and-against the University and infuse them politically, using globalised technologies, in order to open-up a counter-hegemonic space or global commons. It is only through the politicising of academic (student/teacher) labour through solidarity actions that truly transformational change which addresses social need and marginalisation beyond the market can be realised. Universities are critical sites in the globalisation of this struggle, as is the student/teacher as producer/consumer of material relations that are beyond the subjective. They form sites of struggle that are against those spaces described in the IPPR paper or Steinberg’s Bill. They form spaces through which we might replace the restructuring and reorganisation of global society for capital accumulation. They form spaces for the realisation of pedagogic models and ideas of public education that maintain counter-hegemony. It is time for academic labour to find its voice or to lose those spaces to the market.


On Globalisation and the University

I: on globalisation

In his Globalization: nine theses on our epoch, William Robinson argues that “activists and scholars have tended to underestimate the systemic nature of the changes involved in globalisation, which is redefining all the fundamental reference points of human society and social analysis, and requires a modification of all existing paradigms.” In the systemic changes that are driven by and which drive globalisation, we are increasingly witnessing a transnational conflict between capital and both an impoverished labour force in the global South, and a labour force that is being increasingly proletarianised in the global North. Robinson argues that this conflict is incubated through and exacerbated by technologically-mediated innovations in capitalist production processes that increasingly discipline labour. Disciplinary practices include: threats of outsourcing; using technology and efficiencies in production to drive down wages; enforcing changes to terms of employment; attrition or privatisation of social welfare; the use of technology to monitor work; and increasingly deflationary economic policies which attack standards of living for all-bar social elites. The ability of capital to discipline labour is critical because, as Simon Clarke has noted, as capitalism restructures itself, the conditions for the renewed production of surplus value is set by dominating and restructuring labour power and means of production, rather than by stimulating consumption.

For Robinson the mechanisms through which transnational capital is hatched out of national capitals in the global North is a central theme of globalisation. He sees a corollary in the capture by transnational elites of the state apparatus for control in the global North and the attempt to do so in the global South. He then argues in a discussion paper that in understanding the mechanics of capitalism in its neoliberal stage, and in shaping responses to it, it is critical to analyse how globalisation is “a qualitatively new transnational stage in the on-going evolution of world capitalism”. This echoes Ellen Meiksins Wood’s argument that

we’re living in a moment when, for the first time, capitalism has become a truly universal system…. Capitalism is universal also in the sense that its logic – the logic of accumulation, commodification, profit-maximisation, competition – has penetrated almost every aspect of human life and nature itself.

Here capital needs other economic systems, including public sector spaces, as soil and medium for accumulation, with new roles for nation states under the logic of competition, in policing order and law, and in setting a clear economic direction.

II: defining a new epoch

For Robinson, globalisation as a new epoch in the history of capitalism is made up of four key strands. These strands need to be applied to specific contexts, like the terrain of higher education and the impact of technology on it, in order that a meaningful critique can be generated.

  1. The first strand is the rise of truly transnational capital, pivoting around an integrated global production and financial system. Thus, we witness the growth of transnational, educational corporations like Pearson, and the involvement of the investment banking arms of Goldman Sachs, or of consultants like McKinsey, or of outsourcing corporations like Capita, in opening-up education, and the use of technologically-driven services to commoditise the space further. Through these integrated systems, education providers are tied into networks of defence, security, finance and policing activity, and processes of outsourcing and change management that are driven by the need to extract surplus value.
  2. The second strand is the coalescence of a new class group which Robinson describes as “the hegemonic fraction at a world level of global class structure”. This transnational capitalist class is grounded in global markets and circuits of accumulation. This differentiates it from the hegemonic fraction of the previous epoch of capitalism, which focused upon national markets and circuits of capital. Inside higher education we witness a cadre of public administrators, for example in the UK Department for Education, actively courting and working with global corporations and management consultants to implement social education policy.
  3. The third strand is the rise of “a transnational state apparatus”, which forms a loose coalition of institutions which is comprised of all super-national, transnational and international institutions, for example the World Bank, the International Monetary Fund, the European Central Bank, the North American Free Trade Association and so on. In those nation-states that are in crisis, like Greece, Italy, Spain and Ireland, the structures of the nation state are being transnationalised so that they relate to and underpin an emerging transnational structure. Education cannot escape this locus of control.
  4. The fourth strand is the appearance of “new forms of global inequality that cut across the old north-south and nation state lines that group new types of transnational social inequality”. In this, technologies are being used to help reconfigure institutions and capitalist relations of production, in order to generate new configurations of global power that operate transnationally, and access to technologies reinforces these systemic inequalities.

As Robinson argues, “[w]e need to understand these things”, if we are to analyse how our work inside the University is co-opted for the extraction of value by transnational elites, which operate inside-and-against national politico-jurisdictional boundaries through networks of corporations, think tanks, administrative institutions, private equity firms etc.. Simply thinking in terms of learner’s rights, or personalisation, or digital literacy, or critical pedagogy is meaningless without situating that [whatever] in the context of globalised capitalist relations of production.

This process of understanding might take our use of technology inside the University and relate it to the offensive undertaken by capital in its post-Fordist, neoliberal phase, where it breaks free of nation state constraints on accumulation, and especially the relationship between capital and labour that generated a social welfare and social democratic model of the second-half of the Twentieth Century. This model included the idea of the University as a public good, or as a publically/charitably-funded, governed and regulated good, which could respond to local or national need. However, it restricted the ability of capital to drive the rate of accumulation and profit at an appropriate level, and as such capital sought to restructure global production and consumption processes, in-part through technological innovation. As George Lambie has noted:

It is important to understand that it is not so much the geographical distribution of labour that is the problem for workers, but the global restructuring of the relationship between capital and labour… Labour is [now] a factor of production that, like all others, must be utilised in a manner that maximises profits.

Thus, we see a global break with the need to be responsive to any social democratic framework, in the face of a new, transnational model of accumulation that is dominated by finance capital.

Robinson argues that this new model has four critical outcomes.

First, “new capital-labor relations… based on a cheapening of labor, on the notion of flexible labor or deregulated and de-unionized labor, becomes now the general, worldwide model.” Thus, we witness hyper-exploitation inside factories in the global South that support the economies of the global North, alongside the disciplining of technologised and service-sector labour in the global North through threatened outsourcing or the commodification and leverage of core or developmental skills. Lambie has argued that:

If the post-war Keynesian consensus produced the Fordist worker, globalisation has resulted in a ‘Walmart-isation’ of labour, typified by part-time, non-unionised, depoliticised, disempowered and quiescent employees with few benefits, rights or opportunities to influence the conditions dictated by capital.

At issue here is the extent to which higher education in the global North underpins that on-going commodification process, either in new forms as it promotes innovations around personalisation and accreditation, like badges, digital literacy etc., or through its standard structures carried in distance learning, internationalisation strategies etc.. One might ask how such practices form a means of further restructuring a flexible, globalised regime of labour relations.

Second, there is “a dramatic round of extensive and intensive expansion of capitalism itself”, so that there is no outside of the system of value-extraction, enclosure and accumulation. This includes states that held out against full integration in the circuits of capital, like China, and pressure on revolutionary states such as Nicaragua, Venezuela, Cuba and Angola. Thus, we see the current vogue for universities in the global North to commodity-dump cheap educational products through MOOCs or distance learning, or to extract high-level skills through internationalisation strategies, or to enable capital to reproduce its structures through educational “outreach” in the global South. A recent Bain Consulting report on A world awash with money noted:

By using distance-learning technologies to “export” higher education, leading universities in the advanced economies can accelerate the training of the home-grown specialists the emerging-market economies will need. And by “importing” the talent of engineers, managers, physicians and other highly skilled professionals from companies in developed markets, businesses in the emerging markets will not need to wait a generation before their own education systems can produce the skilled workforce they require.

However, we also see the intensive expansion of capitalism through aggressive privatisation of the previously public spheres like education. This also means that we are increasingly witnessing the conversion of the cognitive capital produced inside the University, like the human genome or services based on learning analytics or drone research, into accumulation and the commodity-form, driven by intellectual property rights. Thus, the University is used to enable the geographic spread of transnational capitalism, but it also enables capital’s circuits to be deepened through the commodification of intellectual life inside new terrains.

Third, a global legal and regulatory structure is created in order to facilitate the emerging global circuits of accumulation. Thus, not only does the World Trade Organization catalyse multilateral, bilateral, and global free trade agreements, but the IMF and the World Bank are recast in order to underwrite and catalyse structural adjustment on a global stage. This is critical because under austerity policies, the global market has a declining ability to absorb global economic output, which then stresses the system through under-consumption/over-accumulation. With no massive public works and limited focus on war as a means for the State to absorb surplus value, we witness a focus on redistributing wealth through quantitative easing and privatisation from the poor to the wealthy. One might also view the underwriting of student loans as a new, derivative-driven bubble, the role of universities in on-line strategies that include MOOCs, and the engagement of private providers in the global educational space, as mechanisms for meeting the production/consumption gap in output.

Fourth is the “neo-liberal structural adjustment programs which seek to create the conditions for the free operations of the emerging transnational capital across borders and within each country, so that capital, particularly emerging transnational capital, is unhindered by both state borders and by regulations within states.” As I argue elsewhere

Beyond their capitalisation by transnational networks to attempt either the restructuring of the University or the release of the surplus intellectual value contained inside it for entrepreneurialism, technological innovations are also aimed at maintaining an increase in the rate of profit. Hence the role of transnational educational corporations like Pearson, or of transantional finance capital, like Goldman Sachs, in the privatisation of higher education, with technology as a crack in that idea that the University might be publically-financed, governed and regulated.

Thus, in the range of global educational initiatives, that encompass MOOCs, global digital literacy, cloud-based innovations and outsourcing, internationalisation strategies, data mining, mobile learning etc., the key is to understand how technology-driven innovations relate to the globally-hegemonic fraction of transnational, finance capital. This is critical because these innovations are not outside the circuits or cycles of globally mobile capital. Thus, these innovations further reduce the technical constraints or barriers to the reproduction of capital and its valorisation/accumulation processes, just as they revolutionise the transportation, interaction, production and consumption of individuals with (intellectual or cognitive) commodities/products.

III: a new epoch as crisis

These outcomes are clearly linked to the on-going crisis of capitalism in its neoliberal phase, and are connected to over-production and the falling rate of profit, which in-turn catalyses a desperate rush for new markets. Simon Clarke has argued that over-production occurs because capital drives beyond its natural limits, leading to a crisis of disproportionality in the production process made worse by credit bubbles and commerce, so that it becomes a general crisis of overproduction. Thus, the greater the mass of surplus value to be released as commodities, the more frantic is the search for new markets, and the more vulnerable is accumulation to disruption when it confronts the limits of profitability, for instance in falling demand. We might also witness this in the production/consumption of higher education as credit-fuelled study and in the recalibration of universities as businesses that underwrite a Government’s Industrial Strategy. This in-turn risks a crisis of disproportionality/profits in the circuits of educational provision.

In these processes of transnational valorisation/accumulation, Robinson argues that:

the network nature and structure of the global economy, organized as subcontracting and outsourcing chains which are quite endless, which cross national borders and so forth and also as a network structure in the sense that a network is where a segment can attach to a network, and by that attachment, it is connected to all kinds of other elements and other forms of organizations it would not be networked to literally and then it can detach and reattach itself to other networks. It’s more like a global spider web, except again that you have power being centralized, exercised through decentralized networks but concentrated.

This is again important in assessing both the role of the University in structuring those networks, but also in revealing how technologies are used to amplify the mechanisms through which the University can be further enmeshed in the circuits of capital. A corollary of this is seen in the recalibration of the relationships between academic management and academic labour through financialisation, debt and indentured study, the idea of student-as-global-consumer, and the use of technology to discipline working practices. It is impossible to assess this process properly without thinking through the relationships between the University and transnational finance capital, and the idea that the University is being increasingly subjected to pressure for structural adjustment. This, in turn, includes the ways in which what Robinson calls “the transnational state” sets primary and secondary policy that creates the conditions for globalised capital accumulation. In the UK this includes the Coalition’s restructuring of secondary education curricula, the momentum for performance management of teachers, the removal of VAT exemption for shared services, raising the cap on student fees, using student number controls and core/marginal provision to drive change, and co-hosting educational technology symposia with corporations like Goldman Sachs.

Thus, the State is now a key instrument of the global capitalist system in creating an environment in which capital can reproduce itself and in widening and deepening the interests of global capital over national capital and national labour forces or the unemployed. Education and the place of the University has to be seen in light of this globalised social polarisation and social reproduction, and the increasing levels of global inequality that follow in its wake, which includes falling living standards and the extension of precarious working and living conditions in the face of austerity in the global North. As Robinson cautions us

[This is]not a crisis for the capitalist system unless those that are starving to death or those that don’t quite know how they will be able to survive actually resist those conditions… If half or two-thirds of humanity just quietly starved to death, there wouldn’t be a crisis of the system, only for those people starving. But since they are resisting, it is a systemic crisis.

Thus, Robinson notes that we increasingly face “a crisis of legitimacy in the sense that states are facing legitimization crises everywhere–that’s the famous crisis of governability.” The view that market mechanisms are the sole arbiter of social relationships and that efficiency in the name of the accumulation of capital are our only ways of constructing a meaningful life-world, is increasingly under attack. Witness the students in Occupation at Sussex University stating that:

Perhaps most importantly the decision to bring private providers into the education sector reflects a larger ideological push by this and previous governments to marketise education as a consumer good. For management at Sussex this is certainly a continuation of departmental teaching and university-wide job cuts over the past 5 years under the guise of “deficit-cutting”. We stand firmly against the segregation of our campuses along producer/consumer lines and reject this false dichotomy. Moreover, we reject the way in which outsourcing further segregates different members of the campus community, whose job statuses, though necessarily complementary in practice, become suddenly dissociated financially and institutionally, leading to a complete breakdown of the social cohesion intrinsic to any healthy and normally functioning organisation. We wholly reject the undemocratic and unaccountable structures and procedures which this management has procured in order to force its agenda on members of the Sussex campus community. We reassert that Education is a public good that is and should remain free of perverse market incentives in every aspect of its provision.

IV: capital’s response to the crisis and Robinson’s Nine Theses

It is useful to state Robinson’s Nine Theses, as an analytical tool for framing what might be done to resist transnational capital.

First, the essence of the process is the replacement for the first time in the history of the modern world system, of all residual pre (or non) –capitalist production relations with capitalist ones in every part of the globe.

Second, a new ‘social structure of accumulation’ is emerging which, for the first time in History, is global.

Third, this transnational agenda has germinated in every country of the world under the guidance of hegemonic fractions of national bourgeoisies.

Fourth, observers search for a new global hegemon and posit a tri-polar world of European, American, and Asian economic blocs. But the old nation-state phase of capitalism has been superseded by the transnational phase of capitalism.

Fifth, the ‘brave new world’ of global capitalism is profoundly anti-democratic.

Sixth, ‘poverty amidst plenty’, the dramatic growth under globalisation of socioeconomic inequalities and of human misery, a consequence of the unbridled operation of transnational capital, is worldwide and generalised.

Seventh, there are deep and interwoven gender, ethnic and racial dimensions to this escalating global poverty and inequality.

Eighth, there are deep contradictions in emergent world society that make uncertain the very survival of our species – much less mid- to long-tem stabilisation and viability of global capitalism – and portend prolonged global social conflict.

Ninth, stated in highly simplified terms, much of the left world-wide is split between two camps.

Thus, the globalised terrain upon which universities now exist as competing capitals, forces them to:

  • become efficient in service-provision, for example through outsourcing, privatisation or cloud-based services;
  • respond to indentured/debt-fuelled student life and expectations, linked to personalisation, employability, bring your own device;
  • compete internationally either through traditional mechanisms like overseas campus provision, or through virtual, technocratic innovation;
  • drive mobility and flexibility as a means of leveraging surplus value from employees;
  • engage with high-risk, financialised growth strategies, for example medium/high yield bonds;
  • connect to the research and development imperatives of globalised capital for securing new terrains for accumulation, including data mining and learning analytics, or drone-based/makerspace-type research;
  • drive the reskilling of global labour as a commodified workforce through employability strategies that are underwritten by concepts like badges and digital literacy; and
  • connect to the politico-jurisdictional imperatives of globalised capital by suppressing academic dissent, or investing in security/policing functions.

This is important because as Robinson’s analysis enables us to see, the University is enclosed by the realities of transnational capital, through which we witness the complete commodification of social life based around segmented structures and hierarchies. Here, the relations of the capitalist economy structure all spheres of life, and a set of mutually-reinforcing social, economic and political institutions and cultural and ideological norms fuse with and facilitate a new period of capitalist accumulation. The cultural/ideological component here is set in-part through education and technology, and is based upon consumerism and cut-throat individualism rather than collective well-being. Through the focus on mobility, flexibility and employability, and the recalibration of student life through debt, collective action is confronted and marginalised by a focus on personal aspiration. As a result, the University becomes a node in a global productive structure with a concentration of services, knowledge, finance and technology in the global North and of productive labour in the global South. As Robinson notes, “The dominant global culture penetrates, perverts and reshapes cultural institutions, group identities and mass consciousness.”

As I noted elsewhere in discussing academic exodus, pace John Holloway, the ideological, political drive towards, for instance, indentured study and debt, internationalisation, privatisation and outsourcing means that the University has little room for manoeuvre in resisting the enclosing logic of competition and in arguing for a socialised role for higher education. This means that the internal logic of the University is prescribed by the rule of money, which forecloses on the possibility of creating transformatory social relationships:

The argument against this is that the constitutional view isolates the [University] from its social environment: it attributes to the [University] an autonomy of action that it just does not have. In reality, what the [University] does is limited and shaped by the fact that it exists as just one node in a web of social relations. Crucially, this web of social relations centres on the way in which work is organised. The fact that work is organised on a capitalist basis means that what the [University] does and can do is limited and shaped by the need to maintain the system of capitalist organisation of which it is a part. Concretely, this means that any [University] that takes significant action directed against the interests of capital will find that an economic crisis will result and that capital will flee from the [University] territory.

Thus, we need to see the University as a business recalibrated inside the structural power of fully mobile transnational capital. This is disciplinary and based upon dense networks of supranational institutions and relationships, alongside the co-option of national jurisdictions for: fiscal and monetary policies that enable macro-economic stability; creating an infrastructure for global economic activity; and social control. For Robinson, capital needs state power rather than the nation state, which acting as the neoliberal state becomes an agent for wringing concessions from global labour.

V: what is to be done?

Critiquing the role of transnational corporations in controlling assets and trade, and in driving speculation and speculative bubbles that threaten livelihoods and lives, is critical in understanding how economic power drives political action. Witness this report from Bain Consulting on A world awash in money

As fluid as the movement of capital has become thanks to information technology and high-speed communications, the barriers that impede its flow to and among the capital-hungry developing markets will remain formidable. Investors will continue to favor the advanced markets, which are well endowed with the “trust architecture”—strong property rights protections, reliable legal systems and institutional depth—that owners of capital value.

Under the conditions outlined above the content of university life is driven by the realities of globalisation that form a socio-cultural space that reinforces disempowerment, in spite of rhetoric about learner’s rights, social justice or mobility, or economic equality. What is worse is that the University risks becoming a node in the permanent structural violence that is visited against the majority of the world’s poor, ostensibly in the global South. Internationalisation strategies, MOOCs, intellectual property and patent law, structural adjustment, exporting mobile learning, all become circuits through which capital is accumulated from the South. This is continually restructured through corporate management, the store of capital in spaces that service tax havens for the North, and the location of centres of technology and finance in the North. However, the threat of a new international division of labour is also realised as the immiseration of the middle classes in the North as they are indentured or threatened with outsourcing, and as their futures are asset-stripped and accumulated by transnational elites.

Robinson argues that the left has two responses. These are: first, the neo-Keynesian approach that seeks rapprochement with capital, based on social democracy and redistributive justice, in order to make it work ethically; second, those who see capitalism as inherently wicked and to be rejected/resisted without working through a coherent socialist alternative to the transnational phase of capitalism. In developing a set of possible alternatives that move beyond these positions, he argues that:

we should harbour no illusions that global capitalism can be tamed or democritised. This does not mean that we should not struggle for reform within capitalism, but that all such struggle should be encapsulated in a broader strategy and programme for revolution against capitalism. Globalisation places enormous constraints on popular struggles and social change in any one country or region. The most urgent task is to develop solutions to the plight of humanity under a savage capitalism liberated from the constraints that could earlier be imposed on it through the nation state. An alternative to global capitalism must therefore be a transnational popular project… The popular mass of humanity must develop a transnational class consciousness and a concomitant political protagonism and strategies that link the local to the national and the national to the global.

Thus, it is possible to see cracks in the contradictions of global capitalism, and to develop popular alternatives, like the range of social centres, or co-operative alternatives, or occupations that form oppositional moments to specific issues, but these need viable socio-economic alternatives to sustain them. This is a form of Gramscian mass intellectuality, whereby counter-hegemonic positions are developed and nurtured through solidarity actions. These counter-hegemonic positions need to be grounded in a political economy that reflects a socialised, rather than privatised globalisation; a globalisation from below that both demands global solidarity actions and is based on participatory practices, like general assemblies or associational democracy.

Robinson offers the possibility that alternatives might include: “some type of global Keynesianism, a global redistributive project, a global reform capitalism”; “global fascism” as a reactionary political project focused on coercion, and the militarisation and the masculinisation of popular culture and of social relations; or “a global collapse of civilization, a degeneration of civilization. And again, we’ve seen such outcomes throughout history when no social force can stabilize a particular system, when a civilization cannot resolve its internal contradictions”. More hopefully, he argues for “a global 21st century socialism” infused democratically, with examples that emerge from the co-operative movement in South America, in Venezuela and Cuba.

Critical in the development of a viable alternative is Robinson’s idea that “we always make our own collective history and so the future is never predetermined.” Thus, Ellen Meiksins Wood states:

We really can begin to look the world not as a relationship between what’s inside and what’s outside capitalism, but as the working out of capitalism’s own internal laws of motion. And that might make it easier to see the universalization of capitalism not just as a measure of success but as a source of weakness… It can only universalize its contradictions, its polarizations between rich and poor, exploiters and exploited. Its successes are also its failures.’

Crucially then, there is a role for those who labour inside the University in revealing the systemic nature of globalised capital in co-opting all of human existence for profit-maximisation, growth strategies, and accumulation. Moreover, there is an imperative for connecting critique to the mechanisms through which capitalism in its neoliberal phase increasingly consumes and destroys humanity and nature. As Lambie argues, revealing these mechanisms highlights how the family, community and workplace are eroded, and how social welfare is damaged, leading to precarious or vulnerable futures. Thus, the connection of academic critique to the mechanisms through which austerity reproduces and extends the power of transnational elites may reveal the true class position of global labour, including those who regard themselves as the educated middle class. In this, the development of solidarity actions grounded in mass intellectuality is critical.

From inside the University, those solidarity actions might be focused upon developing critiques of the following.

  1. The global processes of labour arbitrage, whereby technology is used to deskill and discipline global labour, including inside the academy. This stands against the ideal of many educators for the democratic agendas of digital literacy or learner’s rights.
  2. How transnational capital uses the global processes of competition and free trade agreements to discipline transnational labour, through the use of cloud technologies and outsourced services, through workplace monitoring, and increasingly friable labour conditions.
  3. How globalised, neoliberal cultural norms emerge from the objective conditions of capitalist work, and the everyday reality of those objective conditions for those who work in the global South and whose work in the global North is proletarianised. This includes the ways in which universities reinforce those objective conditions and act as institutions of the state in underpinning the agency of transnational finance capital, like investment banks, management consultancies, technology firms, private equity etc..
  4. How universities focus their research and development on social need that is defined locally rather than amplifying global transnational value extraction.
  5. Shining a light on models of accumulation that are riven with new forms of imperialism, and capital flows from the global South to the securitised, debt-driven global North.
  6. Developing mechanisms for understanding how the tensions that are revealed in the high levels of debt-to-GDP on both national and global scales might be resolved, or how alternative value forms and social relationships beyond a currency that is underpinned by oil might be developed.

Key is describing and deliberating the relationships between the University and specific social forces that might be used to catalyse a new political consciousness. At issue is how the University and academic labour might resist co-option on a global scale, in order to support those social forces that might fight for a different form of valorisation and for policies that are based on social need as the central development strategy of the State.


On the structural adjustment of higher education

I

I’ve been trying to develop an argument that the development of innovations like MOOCs, learning analytics, personal learning networks etc. are a form of structural adjustment of higher education. In previous posts I have argued that MOOCs and other specific technologically-driven innovations need to be critiqued in terms of their impact on the historic forms of the University and the idea of academic labour. Thus:

The political economic background against which the University’s mission and role is played out is one of indenture, collapsing real wages, unemployment and depression. It is against this background that the political economics of MOOCs might be addressed, as one form of the negation of the historic role of the University, and as a mechanism through which capital can extract rents (through access rights or accreditation) or release (social or human capital as) surplus value for the market. One important strand that emerges from any such analysis surrounds the meaning of academic labour and the role of academics as organic intellectuals.

Beyond their capitalisation by transnational networks to attempt either the restructuring of the University or the release of the surplus intellectual value contained inside it for entrepreneurialism, technological innovations are also aimed at maintaining an increase in the rate of profit. Hence the role of transnational educational corporations like Pearson, or of transantional finance capital, like Goldman Sachs, in the privatisation of higher education, with technology as a crack in that idea that the University might be publically-financed, governed and regulated.

Structural adjustment across the globe has taken very specific forms, promoted by transnational organisations like the International Monetary Fund and the World Bank. There has been some pushing back against the imposition of structural adjustment, for example in Malawi where subsidies for grain fertilizers were re-introduced in 2005 to alleviate famine in the face of global pressures.

The important lesson for policy-makers in other African countries, which continue to battle with chronic hunger and food insecurity, from the Malawi turnaround, is the fact that it has been triggered solely by a government policy intervention- a reintroduction of deep fertilizer subsidies as part of the 2005 Fertilizer Subsidy Policy. This policy was implemented at the cost of inviting the wrath of the donor community, particularly the IMF, World Bank and the USAID.

However, the story of structural adjustments ties into Naomi Klein’s precepts that underpin the shock doctrine and the impact of austerity politics.

  • The relentless law of competition and coercion [the rush to internationalise].
  • The impact of crisis to justify a tightening and a quickening of the dominant ideology [student-as-consumer; HE-as-commodity].
  • The transfer of state/public assets to the private sector under the belief that it will produce a more efficient [smaller, less regulatory] government and improve economic outputs [outsourcing; service-driven innovation].
  • Lock-down of state subsidies for “inefficient” work [Arts and Humanities subjects].
  • The privatisation of state enterprises in the name of consumer choice, economic efficiency or sustainability [creating a political and socio-cultural space that encourages the privatisation of HE].
  • A refusal to run deficits [pejorative cuts to state services].
  • Extending the financialisation of capital and the growth of consumer debt [increased fees; the use of bonds].
  • Controlled, economically-driven, anti-humanist ideology.

This focus on structural adjustment and shock is important in the unfolding crisis of higher education, and it relates directly to MOOCs/technological innovation and change, precisely because we are witnessing the policy space being recalibrated to marginalise the idea of the University as a public good. Within UK HE, the move by the last Labour administration to place higher education within the Department for Business, Innovation and Skills and their introduction of a fee regime, the Browne Report and the Coalition Government’s subsequent response to it, have turned the global economic crisis into a means to quicken the privatisation of the state, and to attempt the strangulation of possibilities to energise transformative, co-operative relations. This places previously socialised goods like healthcare and higher education in the vanguard of austerity-driven shock, which designs “to achieve control by imposing economic shock therapy”. The extraction of value, or the state-subsidized privatisation of higher education (in Christopher Newfield’s terms) is what follows.

II

This line of thinking is important because of two recent statements that further shape the policy/practice space of higher education. The first is the latest statement released by Moody’s, the credit rating agency, about higher education, and the second is the funding letter from DBIS to the Higher Education Funding Council for England. Each of these documents is critical in recalibrating the ways in which we are allowed to think about higher education and what higher education is for.

Inside Higher Education reports that:

Moody’s analysts caution that revenue streams will never flow as robustly as they did before 2008. The change will require a fundamental shift in how colleges and universities operate, they say, one that will require more strategic thinking. “The U.S. higher education sector had hit a critical juncture in the evolution of its business model,” wrote Eva Bogarty, the report’s author. “Most universities will have to lower their cost structures to achieve long-term financial sustainability and to fund future initiatives.”

Moreover:

The report notes that colleges will have to rely on more strategic leaders who address these challenges through better use of technology to cut costs, create efficiency in their operations, demonstrate value, reach new markets, and prioritize programs. Many of those efforts could be grounds for disputes with faculty members or other institutional constituents unless leaders can get the collective buy-in that has long been the staple of higher education governance.

Thus, in terms of the mechanisms through which profit might be generated, in particular given the attrition on enrolment being reported in global North due to rising costs (see this report on families being priced out in the USA and hand-wringing over falling admissions in particular in the Russell Group universities in the UK):

The ratings agency argues that they are an opportunity for market leaders — those institutions that already have diverse revenue streams and brand recognition — to further improve their position. Such institutions could find ways to monetize MOOCs by potentially granting credit for a fee, licensing their courses to other institutions and advertising. Moody’s also notes the possibility of technology to increase faculty productivity by increasing the number of students one faculty member can serve, potentially creating efficiencies in the long term.

Whilst Moody’s is reflecting on HE in the USA, it has clear ramifications for UK HE, as institutions are seeking credit ratings for bond issues, and because transnational organisations like credit ratings agencies are integral to the geographies of neoliberalism that underpin transnational activist networks (TANs) that are in-turn adjusting the space inside which the University operates. Thus there is a space being opened up by the inter-relationships between ratings agencies like Moody’s, global finance capital, like Goldman Sachs, global private education providers like Pearson and Blackboard Inc., think-tanks like Pearson Education, and policy makers or administrators.

Whilst the report highlights the impact and risk profiles of both the growing issues of a student debt bubble and ensuring that the degrees awarded are of sufficient quality, a third issue is developed in the report and that is labour relations. Structural adjustment demands a restructuring of labour costs and practices, as is witnessed by the Troika’s actions in Greece. This is also hinted at in the Moody’s report which Inside Higher Education notes:

The report notes that any efforts to prioritize programs will likely run into opposition from various campus stakeholders. The governance model of universities vests varying authority in boards, managers, and faculty members. Even when faculty members are cut out of decision-making, the institution of tenure gives them leverage.

At issue then is the role of organised labour in the University sector, and its ability to push back against the restructuring of individual institutions or the sector as a public good. This is more important in the UK given the DBIS letter to HEFCE about funding. The letter highlights:

  • the pace of change through the clear link between HEFCE and ensuring that the Coalition’s “reforms are delivered in a timely and efficient way” [para 5];
  • the focus on competition through enabling alternative providers to enter the emergent HE market [para 6];
  • the focus on generating a culture of philanthropy or what has been called “philanthrocapitalism” [para 7];
  • the co-option of organisations like the Higher Education Academy, which have a vision to support the student experience, teaching excellence and innovation, to the service of the Government’s readjustment strategy and entrepreneurial/industrial agenda [para 11];
  • the imperative to develop information and learning/institutional analytics as a central disciplinary tool for managing higher education agendas [para 14];
  • the generation of universities as sites of service-driven change and marketisation [para 15];
  • the co-option of publically-funded “university research infrastructure”, in order to underpin “strategic research partnerships between universities, businesses and charities” that enables economic growth through state-subsidised privatisation [para 16];
  • the use of science and research by “selectively funding on the basis of only internationally excellent research,” to drive further competition between universities [para 18];
  • the explicit shackling of HE to the Coalition’s industrial strategy, so that the idea of the university is driven by economic growth [para 20];
  • the use of the term “legitimate students” playing into an agenda that continues to demonise “the other” inside and across UK society [para 21];
  • the use of a risk-based approach to HE, which Andrew Haldane has critiqued for its lack of respect for non-linearities and its inability to model contagion [para 23];
  • the use of financial incentives to model social mobility as a disciplinary function [para 25]
  • the imperative to seek efficiencies through outsourcing [para 26];
  • the demand that the pay and conditions of academic labour are managed with “restraint” [para 26];
  • the use of core and margin student numbers as a policy lever, now through custom and usage rather than primary policy the everyday reality of higher education, that creates the objective conditions for a competitive market to be structured [paras 30-35].

Some University leaders, notably DMU’s VC, have reacted to this letter by outlining how it impacts the relationship between staff and students, with a focus on student charters, admissions policies, and the development of a “Darwinian approach to enrolment” that prefigures an increasingly competitive higher education policy. Quite how this Darwinian approach plays out in terms of: University missions and diversity; the idea of the university as a public good; the use of financial mechanisms like bonds; the impact of a differential approach to implementing fees; a new regulatory approach for cross-sector organisations like HEFCE and the QAA; and the relationships between management, unions, academic labour and students; needs more meaningful critique across the sector.

III

The pace of change demands that alternatives or spaces for critique and action are developed, in particular because those TANs are restructuring the idea and the reality of higher education. In terms of how innovations are presented inside civil society in terms of social mobility, or reducing the rights of academic labour, or in terms of economic efficiencies, or in terms of access and student rights, or more brutally in terms of socio-economics in terms of the rate of profit and addressing issues of under-consumption, a critical emergent issue is about the place now of organised academic labour inside the University, and the role of, for example, UNISON and UCU. In this I am reminded of Paul Mason’s argument after the March 26 2011 anti-cuts demonstration in London, when he argued that

The big takeaway from today is that the trade union movement – though dominated by the public sector – is certainly a force to be reckoned with: what it chooses to do now will be interesting because Miliband’s strategists certainly want nothing to do with the mass, co-ordinated strike movement advocated by Serwotka, Len McCluskey etc.

We tend to forget, because we obsess about political parties, that in organisational terms the unions are much bigger than the Labour Party itself. Indeed the Labour Party branch banners I saw were often carried by a few, oldish, colourfully dressed people, whereas unionists tended to be younger and very “branded” by their professions or unions, as with the Unison Filipino Nurses, the FBU etc.

Another note: we tend to think of the public sector unions as white collar or from the service industries but this was not true of today: there were many tens of thousands of manual workers in their bibs, hi-vis uniforms etc. I met binmen from Southhampton furious that they pay is being cut; and of course the Firefighters, designated “stewards” in order to deter the anarchists from coming anywhere near the demo.

In terms of higher education there are clearly issues of labour relations and solidarity within the sector between different unions, and across sectors that now matter. Thus, there is a second emergent issue, related to this issue of solidarity, namely the relationship between formal higher education and the academic labour located therein, and those alternative educational projects that still survive two or three years after they originally coalesced. These alternatives might be MOOCs, where they have not been co-opted for capital, rent, profit or restructuring, but more importantly they include ideas like the Social Science Centre in Lincoln or the Workers Education Association or adult education providers, or the educational spaces opened up by, for example, the transitions movement. How we connect across the range of spaces that exist so that they can co-exist, energised by organised academic labour in the face of structural adjustment is our emerging challenge.


On student debt, big data and academic alienation

 I

 Mike Neary, in a recent article on Teaching Politically, quotes the Joint Declaration of the Knowledge Liberation Front that emerged from a meeting in Paris in 2011. The Declaration points out the struggle against the financialisation and corporatisation of the University and of academic labour, and then points towards exodus from the restructuring of higher education that is taking place globally.

Since the state and private interests collaborate in the corporatisation process of the university, our struggles don’t have the aim of defending the status quo. Governments bail out banks and cut education. We want to make our own university. A university that lives in our experiences of autonomous education, alternative research and free schools. It is a free university, run by students, precarious workers and migrants, a university without borders.

This weekend we have shared and discussed our different languages and common practices of conflict: demonstrations, occupations and metropolitan strikes. We have created and improved our common claims: free access to the university against increasing fees and costs of education, new welfare and common rights against debt and the financialisation of our lives, and for an education based on co-operation against competition and hierarchies.

 In an earlier posting on exodus and the process of struggle I argued for “way(s) of re-framing the relationships between academics and the public in an age of crisis.” This seems more relevant after the publishing of FBI documents obtained by the Partnership for Civil Justice Fund (PCJF) relating to the Occupy movement. These documents bear analysis in the context of higher education for three reasons.

ONE. They reveal the Occupy movement being seen as a potential criminal and terrorist threat even though the FBI acknowledges in documents that organizers explicitly called for peaceful protest and did “not condone the use of violence” at occupy protests.

TWO. They link law enforcement, and governmental agencies to corporate strategy and demands, clearly articulating the kinds of geographies of neoliberalism that Stephen Ball has described in Global Education Inc., and which form hierarchies of power inside global capitalism. Thus, Mara Verheyden-Hilliard, Executive Director of the PCJF argued that “These documents show that the FBI and the Department of Homeland Security are treating protests against the corporate and banking structure of America as potential criminal and terrorist activity. These documents also show these federal agencies functioning as a de facto intelligence arm of Wall Street and Corporate America.”

THIRD. They tie the University, academic labour and student-life clearly into this discourse. “Documents show the spying abuses of the FBI’s “Campus Liaison Program” in which the FBI in Albany and the Syracuse Joint Terrorism Task Force disseminated information to “sixteen (16) different campus police officials,” and then “six (6) additional campus police officials.” Campus officials were in contact with the FBI for information on OWS. A representative of the State University of New York at Oswego contacted the FBI for information on the OWS protests and reported to the FBI on the SUNY-Oswego Occupy encampment made up of students and professors.”

One outcome of this process is that forms of protest against, for example, the marketisation of higher education need to be viewed in light of how they threaten global corporate identities and strategies for profit that are being opened-up by the State. In this, the mechanisms by which established hierarchies maintain their power through financialisation and information-sharing need to be described, and alternative positions developed.

II

Developing alternative narratives is critical because the hegemonic description of what higher education is for is being destabilised. In particular we are witnessing a polarisation of higher education around universities as competing capitals. Thus, in a recent Novara discussion on Finance, Financialisation and English Higher Education, Andrew McGettigan made a series of points that illuminate this argument.

ONE. The formal, higher education system will become increasingly polarised and stratified over time. This will then increasingly make higher education a positional good for individual students-as-entrepreneurs as a differential market develops, with certain HEI brands having more social capital for individual students as they compete in a job/wage market that is increasingly squeezed.

TWO. As the fee cap is lifted, the student debt loan book becomes increasingly important. The new polarity across the sector, with top-tier universities agitating for an unrestricted market, will have the most profound effect. In particular, as the data around the loan book develops this will impact fee structures as some universities will be able to articulate their present value (by demonstrating how students are able to repay outstanding loan balances) and their relationship to future graduate earnings. The £9,000 fee cap is important in securing the State’s overall liabilities but the use of data related to earnings and efficiencies in repayments will be stressed by certain universities to enable them to agitate for an exemption from a fee cap. The importance of this as a strategy can already be seen in the expansion of Russell Group (see the expansion of the Russell Group reported in the THE). Thus we have a diminishing sense of higher education as a publicly-funded, regulated and governed good, with it instead forming a space inside which universities become competing capitals inside a market.

THIRD. We are witnessing the secular transformation of universities into new kinds of corporation that are commercial and financial, rather than having charitable status that provides tuition or research. Where generating revenue is the fundamental corporate strategy, and as public funds dry up in face of private finance, at root the internal functions of the University are changed.

FOUR. Data around the state-backed student loan company/book becomes critical. Loans unlike grants generate information via HRMC. Pattern-matching that links UCAS tariffs to retention data to loans and loan repayments will enable actuarial tables to be produced that in-turn differentiate HEIs and courses and entry grades. This will form the performance metric par excellence because it will have a present and future pound sign attached. Such information means that Government can monitor the spend of public money and possibly remove access to the loan book for certain HEIs or courses. The use of data linked to profitability is therefore disciplinary. As the PCJF analysis of linked FBI files showed, federal agencies were functioning as a de facto intelligence arm of Wall Street and Corporate America. There is reason, therefore, to suspect that data about student repayment and university performance will be shared across geographies-of-neoliberalism in the same way to discipline behaviour.

FIVE. These data are increasingly problematic because modelling on graduate salaries uses historic data, and we lack complete datasets. Modelling suggests that there is no uniform premium but a polarisation/hierarchy of graduate classes based on social capital accrued. Moreover, our basic assumptions about employability and wages are under threat, and predictability of repayments is a problem.

SIX. The involvement of global private finance is key to the expansion of the sector and the competitiveness of individual universities as competing capitals. Thus, we see Goldman Sachs and the Ontario Teachers Pension scheme lobbying for investment with universities in for-profit joint ventures in foreign markets, funded by bonds or equity. Investment is not for efficiencies in-country (e.g. the UK), but to take the established UK HE model abroad and to monetise degree-awarding powers.

Whether we like it or not private finance and the disciplinary nature of both the student loan book and big data are restructuring academic labour and the idea of the university as a public or socialised good. 

III

Zerohedge’s 75 Economic Numbers From 2012 That Are Almost Too Crazy To Believe, focuses on what the author calls “bubble(s) of debt-fueled [sic.] false prosperity that allows us to continue to consume far more wealth than we produce.” Just a handful of the 75 illuminate the argument made above that student debt is an insidious and inflationary attempt to use higher education reform to discipline our behaviours as consumers inside capitalism. They therefore demonstrate how education forms a single mechanism through which capital can continue to extract value from previously socialised goods. These numbers highlight the attrition of the myth of the growing middle class, empowered through a university education, that can maintain growth and accepted standards of living. They highlight the increasing immiseration of vast tranches of society in the face of debt.

17: According to the Pew Research Center, 61 percent of all Americans were “middle income” back in 1971. Today, only 51 percent of all Americans are.

18: The Pew Research Center has also found that 85 percent of all middle class Americans say that it is harder to maintain a middle class standard of living today than it was 10 years ago. 

19: 62 percent of all middle class Americans say that they have had to reduce household spending over the past year.

20: Right now, approximately 48 percent of all Americans are either considered to be “low income” or are living in poverty.

21: Approximately 57 percent of all children in the United States are living in homes that are either considered to be either “low income” or impoverished.

37: Recently it was announced that total student loan debt in the United States has passed the one trillion dollar mark.

43: 53 percent of all Americans with a bachelor’s degree under the age of 25 were either unemployed or underemployed last year.

44: The U.S. economy continues to trade good paying jobs for low paying jobs. 60 percent of the jobs lost during the last recession were mid-wage jobs, but 58 percent of the jobs created since then have been low wage jobs.

56: Corporate profits as a percentage of GDP are at an all-time high. Meanwhile, wages as a percentage of GDP are near an all-time low.

We might also want to view Lisa Scherzer’s piece on student debt and the bubble that is affecting older generations who are taking on debt to support family member’s in college, escalating college tuition costs, poor job prospects, and a collapse in real wages. However, the role of big data in maintaining this process is also critical.

IV

I want to quote at length, Steve Lohr in the New York Times, writing about big data, precisely because it highlights how this corporatised technique becomes a mechanism for control. This is important for higher education because using data or information is likely to be used to discipline both universities who need to provide returns to private equity or bond markets, and to students with outstanding, individual tuition debts. Witness McGettigan’s point about the production of usable actuarial tables for repayments related to courses and HEIs. 

Lohr writes:

 These drumroll claims rest on the premise that data like Web-browsing trails, sensor signals, GPS tracking, and social network messages will open the door to measuring and monitoring people and machines as never before. And by setting clever computer algorithms loose on the data troves, you can predict behavior of all kinds: shopping, dating and voting, for example.

The results, according to technologists and business executives, will be a smarter world, with more efficient companies, better-served consumers and superior decisions guided by data and analysis.

Big Data proponents point to the Internet for examples of triumphant data businesses, notably Google. But many of the Big Data techniques of math modeling, predictive algorithms and artificial intelligence software were first widely applied on Wall Street.

Here we might wish to focus on Zerohedge’s analyses of Wall Street’s use of high frequency trading, and Karl Marx’s discussion, in Volume 2 of Capital, on Capital’s systemic need to reduce the circulation time of commodities. 

Lohr continues:

Big Data proponents point to the Internet for examples of triumphant data businesses, notably Google. But many of the Big Data techniques of math modeling, predictive algorithms and artificial intelligence software were first widely applied on Wall Street.

Models can create what data scientists call a behavioral loop. A person feeds in data, which is collected by an algorithm that then presents the user with choices, thus steering behavior.

We are thus returned to the use by the State and corporations of data to control and shape behaviour, including threats of protest and exodus.

V

Student debt becomes a key power source for this drive to privatise in the name of efficiencies, scale, value-for-money and impact, and in fact generates a pedagogic and structural view of student-as-consumer that further recalibrates higher education. In a separate posting on Goldman Sachs and the privatisation of the University I drew attention to how Goldman Sachs’ investment banking arm works to develop Higher Education and Nonprofit Institutions teams, by working

with public and private universities and nonprofit issuers nationwide to structure and execute tailored debt capital markets financings. The firm has a dedicated group of credit specialists whose primary responsibility is to assist the investment banking team and issuers or clients in evaluating and achieving their rating potential. They take an active role on the credit analysis, rating strategy and investor sales process. In addition, with specialty expertise in areas such as athletics risk management, royalty monetization, public-private partnerships and online learning technology implementation, our experts can provide advice and financing solutions tailored to the needs of our issuers or clients.

As a result, the internal logic of the University is increasingly prescribed by the rule of money, which forecloses on the possibility of creating transformatory social relationships as against fetishised products and processes of valorisation.

In the HEA research and policy seminar series reported in the Guardian, Roger Brown has argued that in analysing the impact of debt on the student experience:

We also need an agency that is independent of the government that will take responsibility for addressing these issues on a continuing basis, he added, and “that will be prepared to raise its head above the parapet when necessary, rather than simply being an agency of an agency of the government. We must have some credible, authoritative means of monitoring what happens to the quality of student learning as marketisation proceeds.

However, the risk is that such monitoring merely becomes another form of evidence-based practice that seeks to tweak the internal functioning of a system that is alienating.

This idea of alienation in the face of indentured service and financialisation is highlighted by Gajo Petrović’s essay on Marx’s Theory of alienation. “According to Marx, the essence of self-alienation is that man at the same time alienates something from himself and himself from something; that he alienates himself from himself.” This breaks down into four aspects or characteristics of alienation. The first is the alienation of the results of human labour (the objects produced by human labour constitute a separate world of objects which is alien to us, which dominates us, and which enslaves. The second is the alienation of production itself through alienated labour activity, because our own activity does not affirm but denies and subjugates us. Third, by alienating our own activity from ourselves, we alienate ourselves from our very essence as creative, practical beings. Crucially, Petrović argues that “Transforming his generic essence into a means for the maintenance of his individual existence, man alienates himself from his humanity, he ceases to be man.” Fourth, as an immediate consequence of the alienation of humans from themselves in the face of the market, individuals are alienated from each other. For Petrović “As the worker alienates the products of his labor, his own activity and his generic essence from himself, so he alienates another man as his master from himself. The producer himself produces the power of those who do not produce over production.” So we are left with an element of a totalising system inside which humans are alienated from their humanity.

Our standard refrain in the face of debt is to seek our research opportunities to monitor outcomes and impact, which are themselves alienating. As Neary argues, this is not enough:

In this new financialised world foreign providers can intervene in domestic markets undermining regulatory national frameworks, with devastating consequences for academic labour in terms of insecure employment, increasing precariousness, as well a contravening academic, ethical and value aspirations. The outcome is that academic culture is replaced by an enterprise business culture so that universities come more and more to resemble multinational corporations, with student compliance enforced by a pedagogy of debt.

Thus, what is needed is to understand how we might intensify “the processes of militant/co-research and self-education in praxis”. One way might be to understand how the geographies-of-neoliberalism described by the PCJF’s FBI documents, are allied to the interrelationships between both the techniques of big data and finacialised commodities of higher education, and how they contribute to our alienation from ourselves and each other (as potential entrepreneurial threat or terrorists or whatever). We might then need to ask whether, by describing and analysing the ways in which the State and corporations use such techniques to discipline academic labour and student behaviour and thereby increase alienation, alternatives might be developed.


A note on Goldman Sachs and the privatisation of the university

In a posting on Pearson and the privatisation of academic labour I noted that the acceleration of privatisation inside and against the higher education sector was re-structuring universities as:

an architecture is opened-up that threatens the public funding, regulation and governance of HE. The profitability of HE partnerships for companies like Pearson Education highlights how educational technology is developed as a way-in both to the extraction of value from universities, and to the recalibration of the purpose of universities to catalyse such extraction further. Partnerships and leverage are enforced, in-part, because academic labour is shackled inside the demands of performativity revealed in the research evaluations or student satisfaction scores. Engaging with external partners like Pearson for service-driven efficiencies make sense for universities that are being recalibrated as businesses.

In June 2012 the universities and science minister, David Willetts, was reported in the Times Higher Education to have ‘appealed to private investors to support overseas expansion for UK universities and stated that investment bank Goldman Sachs is “keen to investigate this possibility”.’ For Willetts the key was the extraction of value from external markets, with technology as a central plank in opening-up the sector for ‘a wider range of providers with a particular focus on teaching, or concentrating on the efficient delivery of licences to practise, or focusing on distance learning.’ This is underpinned by the recalibration of universities for economic growth as their primary goal/aim/purpose, alongside the real subsumption of the idea of the university as a public good inside the logic of the market. One outcome of this subsumption is the disciplining of academic labour in the name of valorisation and profit. A knock-on is that the relationship between academics and students is disciplined by money.

It is unsurprising therefore that Willetts is co-sponsoring a Higher Education and Technology Symposium hosted by Goldman Sachs, with a theme of Innovation in Higher Education: Technology, Online Learning and the Future of Higher Education. The symposium ‘will focus on the evolving role of technology, the growth in online education and the emergence of a group of venture-funded companies bringing innovative business models to the market.’ This amplifies the risks I wrote about previously in response to Pearson College, where I argued that privatisation

signals the possibility that a surfeit of new, for-profit providers will cheapen the costs of academic labour that does not develop proprietary knowledge or skills. This risks driving down labour costs and increasing precarious academic work based on post-graduate rather than tenured staff. Flexibility, redundancy, productivity, privatisation, restructuring, value-for-money, all underpinned by technology, risk becoming the new normal for academics involved in teaching and research. As the discipline of the market enters HE in the guise of for-profit, technologically-rich operations like Pearson College, the spaces that are available to develop critiques of the recalibration of the University are reduced. There is no alternative. The point, then, is whether academics can develop new forms of labour in new, collectivised spaces, in order that the complexity of their labour as a process inside HE might be unravelled and re-stitched against technologically-enabled, new public management.

There has been substantial criticism of Goldman Sachs, for example in its client-relationships based on claims of profiteering, via claims based on settlements related to collateralized debt obligations, subprime mortgages, the Goldman Sachs Commodity Index that was implicated by some in the 2007–2008 world food price crisis and commodity trading (detailed here), and the corporation’s alleged role in masking the debts of the Greek economy. Critical here are connections between the contested histories of Goldman Sachs’ global performance, the treadmill dynamics of a corporation based around the rate of profit and financialisation, and the logics of debt-based restructuring of higher education, in-part using technology as a lever. Witness Goldman Sachs’ investment banking arms development of Higher Education and Nonprofit Institutions teams, which will

work with public and private universities and nonprofit issuers nationwide to structure and execute tailored debt capital markets financings. The firm has a dedicated group of credit specialists whose primary responsibility is to assist the investment banking team and issuers or clients in evaluating and achieving their rating potential. They take an active role on the credit analysis, rating strategy and investor sales process. In addition, with specialty expertise in areas such as athletics risk management, royalty monetization, public-private partnerships and online learning technology implementation, our experts can provide advice and financing solutions tailored to the needs of our issuers or clients.

This is of interest because the higher education sector has seen a crack opened for bond issues, which has been analysed by Andrew McGettigan, and has been realised at De Montfort University, and Cambridge, and which has been mooted at University College London. The latter such issue has received criticism because it is linked to the gentrification of local housing in Newham. Alongside recent criticism for higher education’s leadership by the Council for the Defence of British Universities (although some of us have been doing so for a while, see point 8 here), the engagement of HE leaders with private finance and corporate power (witness further criticism by the Stop the War coalition about UCL’s engagement with Tony Blair), and the co-option of higher education for profit, raises serious questions for staff and students about the idea of the University and the ways in which their practices inside it are co-opted for profit.

As Chris Kirkham notes in his piece With Goldman’s Foray Into Higher Education, A Predatory Pursuit Of Students And Revenues

a recent complaint from the U.S. Justice Department detailed a business bent on recruiting students at all costs, a description supported by the accounts of the employees interviewed by the Huffington Post. Hidden behind the upbeat earnings calls and bullish quarterly reports was a cutthroat sales culture that rewarded employees who regularly bent the truth and took advantage of underprivileged and unsuspecting consumers, employees said.

Goldman Sachs and Providence Equity Partners, the other major private equity player in the deal, declined to comment for this article.

But employees recounted a distinct culture shift once the company went private under Goldman Sachs and the other private equity investors, as day-to-day operations warped from a commitment to students and their success into an environment laser-focused on hitting mandated enrollment targets. New recruits were viewed simply as a conduit for federal student assistance dollars, the employees said, and pressure mounted from management to enroll anyone at any cost.

It should also be noted, as I covered in point 7 here, that Providence Equity Partners now owns Blackboard Inc., and was advised by Goldman Sachs on that deal. This should matter to academics precisely because everyday scholarly activities are becoming increasingly folded into the logic of capital through, for instance, indentured study and debt re-structuring of the practices and means of producing learning, internationalisation, privatisation and outsourcing. As a result, the internal logic of the University is increasingly prescribed by the rule of money, which forecloses on the possibility of creating transformatory social relationships as against fetishised products and processes of valorisation.

We might ask, then, what is to be done?


some questions on academic identity and the crisis

An informal reading group met last night to discuss Niall Ferguson’s Reith Lectures. The general consensus was that the lectures represent a crisis of hegemonic neoliberalism, with a picture being created of the structures of political and civil society being re-geared for the maintenance of established power relations that are fashioned inside capital. Inside this picture there is no possibility to see beyond determinist ends as Ferguson presents assertions as fact in a rhetorical blaze.

However, the arrow of the evening pointed towards the idea of academic labour in the current crisis, and in particular towards the following questions.

  1. What is the role of the academic in a world that is being refashioned by rent-seeking elites who are energising what Žižek has described as “the four horsemen of the apocalypse”: ecological distress (impending ecological catastrophes); economic distress (the global financial meltdown); biological distress (the biogenetic revolution and its impact on human identity); and social distress (social divisions leading to the explosion of protest and revolutions worldwide).
  2. What is the role of the academic in the face of issues of intergenerational justice, or the compact between present and future? These are not simply confined to debts securitised against futures as yet unknown or unborn, in order to pay down our present economic crisis. They are also issues of future access to liquid fuel resources upon which economic growth is predicated and the ability to emit carbon without being poisoned by past emissions. Intergenerational justice is a function of the social pressures that might be brought to bear upon the economic/environmental injustices bequeathed upon our children through greed.
  3. What is the role of the academic in contesting a world that produces a semi-enslaved labour force, through precarity, indentured wage labour, the threat of unemployment, technological surveillance, strike-breaking or the politics of austerity? In the face of the global collapse in real wages and the proportion of global wealth owned by labour, as opposed to capital, what is the purpose of a higher education framed by employability?
  4. What is the role of the academic in the face of securitised socio-economic institutions, and the imperative to maintain the increase in the rate of profit, which then underpins structural readjustment policies? How might the academic act against capital’s demand for reduced circulation time in the generation and exchange of securitised commodities, based in-part on technological innovation and in-part on the collapse of risk inside those securitised commodities?
  5. What is the role of the academic in the face of the hegemonic power of undemocratic, transnational activist networks of finance capital, think tanks, politicians etc.? What is the role of the academic in making a case for reality against theses for finance capital, supported by groups like the National Endowment for Democracy, where the means of production and forces of production are outsourced in order to maximise the rate of profit and value extraction from labour?
  6. What is the role of the academic in the face of the hidden fist of the State that protects the hidden hand of the market? Friedman argues that: “The hidden hand of the market will never work without a hidden fist. Markets function and flourish only when property rights are secured and can be enforced, which, in turn, requires a political framework protected and backed by military power… the hidden fist that keeps the world safe for Silicon Valley’s technologies to flourish is called the US Army, Air Force, Navy and Marine Corps.”
  7. What is the role of the academic in the face of growth that is increasingly being re-spun from credit, witnessed in QE3, and which is unsustainable and lethal to the needs of labour?
  8. What is the role of the academic in the face of conservative politicians who would define the law in the name of private property, rather than human rights? How do academics act against this anti-democracy that seeks a context for property rights that underpins unfettered competition, securitisation and marketisation?
  9. What is the role of the academic where the threat of national defaults in Spain and Greece are presented as a threat to global order? How do academics engage with the mechanics of control imposed by a transnational troika, but which might in-turn be an emancipatory moment for social movements inside those states? How do academics assess the social movements that are generated from protest against austerity, to present democratic alternatives and spaces for manoeuvre? Where are the spaces inside higher education for understanding and engaging with social forces that have historically been the catalyst for democratic change, rather than a supposedly benign bourgeoisie? How might students be involved in this process?
  10. What is the role of the academic in arguing for a resilient education that is diverse, modular and connected into feedback mechanisms? How does this enable universities to become sites where students come to understand the objective conditions that exist inside capitalism? How does this enable students to overcome the truisms that surround the idea of student-as-consumer, in which the driver is developing the individuated skills of the entrepreneur? The risk in the separation and individuation of students-as-entrepreneurs is that the responsibility for failure is handed to the individual rather than being collectively/socially negotiated and owned.

a note on the subsumption of academic labour

I

I am becoming more interested in the transition or transformation of academic labour inside an increasingly neoliberal university, and the ways in which technology is used to quicken that transition and discipline that labour. In this I am reminded of the transitions outlined by Marx in the Economic and Philosophical Manuscripts from the formal to the real subsumption of labour under capital. I am not arguing here that we are finally seeing the real subsumption of academic labour under capital, or that it hasn’t yet occurred. However, I am interested in how policy and practice, and in particular the politics and political realities of higher education are now disciplining academic labour, in order to amplify that subsumption and remove opposition to the rule of money. The realities of the quickened pace of the real subsumption of academic labour inside the university as business and higher education as corporate sector bear analysis.

II

In the formal subsumption of labour under capital, as noted in this libcom discussion:

  • the worker confronts the capitalist, who possesses money, as the proprietor of his own person and therefore of his own labour capacity, and as the seller of the temporary use of the latter;
  • both meet as commodity owners, as seller and buyer, and thus as formally free persons, between whom in fact no other relation exists than that of buyer and seller, no other politically or socially fixed relation of domination and subordination;
  • the objective conditions of his labour (raw material, instruments of labour and therefore also means of subsistence during labour) belong, completely or at least in part, not to him but to the buyer and consumer of his labour, therefore themselves confront him as capital;
  • the more completely these conditions of labour confront him as the property of another, the more completely is the relation of capital and wage labour present formally, hence the more complete the formal subsumption of labour under capital;
  • as yet there is no difference in the mode of production itself. The labour process continues exactly as it did before — from the technological point of view — only as a labour process now subordinated to capital;
  • there develops within the production process itself a relation of domination and subordination, in that the consumption of labour capacity is done by the capitalist, and is therefore supervised and directed by him;
  • there develops within the production process itself a greater continuity of labour.

With the real subsumption of labour under capital, as noted in the same libcom discussion:

  • changes take place in the technological process, the labour process, and at the same time there are changes in the relation of the worker to his own production and to capital;
  • ·         the development of the productive power of labour takes place, in that the productive forces of social labour are developed, and only at that point does the application of natural forces on a large scale, of science and of machinery, to direct production become possible;
  • therefore, there is change not only in the formal relation but in the labour process itself. On the one hand the capitalist mode of production — which now first appears as a mode of production sui generis [in its own right] — creates a change in the shape of material production;
  • this change in the material shape forms the basis for the development of the capital-relation, whose adequate shape therefore only corresponds to a particular level of development of the material forces of production;
  • the worker’s relation of dependence in production itself is thereby given a new shape. This is the first point to be emphasised. This heightening of the productivity of labour and the scale of production is in part a result of, and in part a basis for, the development of the capital-relation;
  • capitalist production now entirely strips off the form of production for subsistence, and becomes production for trade, in that neither the individual’s own consumption nor the immediate needs of a given circle of customers remain a barrier to production; now the only barrier is the magnitude of the capital itself;
  • on the other hand, where the whole of the product becomes a commodity (even where, as in agriculture, it partially re-enters production in natural form), all its elements leave the circulation and enter into the act of production as commodities;
  • for production to occur in a capitalist way, an ever-growing minimum of exchange value, of money — i.e. of constant capital and variable capital — is required to ensure that the labour necessary to obtain the product is the labour socially necessary, i.e. that the labour required for the production of a single commodity = the minimum amount of labour necessary under average conditions;
  • for objectified labour — money — to function as capital, it must be present in the hands of the individual capitalist in a certain minimum quantity;
  • the capitalist must be the owner or proprietor of means of production on a social scale;
  • it is precisely the productivity, and therefore the quantity of production, the numbers of the population and of the surplus population, created by this mode of production, that constantly calls forth new branches of industry, operating with the capital and labour that have been set free;
  • in these branches capital can once again work on a small scale and again pass through the various phases of development required until with the development of capitalist production labour is carried on a social scale in these new branches of industry as well.

With the real subsumption of labour under capital a complete revolution takes place in the mode of production itself, in the productivity of labour, and in the relation — within production — between the capitalist and the worker, as also in the social relation between them.

III

So we might think about the recalibration of academic labour inside the University against the following precepts of real subsumption, with some examples that need fleshing out.

  • changes in the technological process, the labour process, and changes in the relation of the worker to his own production and to capital:
    • digital labour: “Digital technology is facilitating on-going efforts by employers to replace full-time, tenured positions with part-time, precarious employment”;
    • proletarianisation and internships: “Unpaid research posts represent the latest step in the ‘proletarianisation’ of the academy”;
    • proletarianisation of post-graduate practice: “HE institutions, faced with a funding crisis, are attacking the conditions established academics and PG employees alike”.
  • the productive forces of social labour are developed:
    • big data: “The data show us that there are some specific teaching practices which appear to promote higher levels of student achievement”;
    • learning analytics: “A [] needed transition is one that moves LA research and implementation from at-risk identification to an emphasis on learner success and optimization… Theoretically, LA has potential to dramatically impact the existing models of education and to generate new insights into what works and what does not work in teaching and learning. The results are potentially transformative to all levels of today’s education system”;
    • personalisation and work-based learning: “mainstream approaches to work-based learning are constructed under the human capital ideology without taking the lived experience of working people and race, class, gender relations into account”.
  • a change in the shape of material production:
    • course closures: “the university could now concentrate on offering the best possible experience to its main markets”;
    • the lean university: “The Lean University project will play a vital role in the University’s strategic development and shaping the way we work”.
  • production for trade
    • the international trade of higher education;
    • neoliberal education restructuring: “Education markets are one facet of the neoliberal strategy to manage the structural crisis of capitalism by opening the public sector to capital accumulation. The roughly $2.5 trillion global market in education is a rich new arena for capital investment.”
  • This heightening of the productivity of labour and the scale of production
    • Pearson College;
    • privatization: “In what follows, I outline four strands of privatization as a formative alternative taxonomy: changing corporate form; marketization or ‘external privatization’; outsourcing; and joint ventures, or collaboration, with private capital.”.
  • the whole of the product becomes a commodity
    • student as consumer: “the Government’s proposals will improve their experience as students, expand their choices and make universities more accountable to students than ever before”;
    • the discipline of debt: “student debt, in its prevalence and amounts, constitutes a pedagogy, unlike the humanistic lesson that the university traditionally proclaims, of privatization and the market”;
    • agendas of choice: “Increased tuition fees mean students will be more selective in their choice of studies in Clearing 2012 due to concern over debt”.
  • an ever-growing minimum of exchange value, of money — i.e. of constant capital and variable capital — is required to ensure that the labour necessary to obtain the product is the labour socially necessary:
    • bond finance: “Universities currently borrow about £5bn, largely through bank finance. But they probably have the capacity to generate close to an additional £4bn to £4.5bn… Time and time again we hear back from investors that they would desperately love to get their hands on anything to do with the university sector and it is surprising that no one has gone to that market yet”;
    • Strategies for effective higher education fundraising.
  • the capitalist must be the owner or proprietor of means of production on a social scale.

IV

This latter point brings me to the politics of higher education and the ways in which political society advocates in the name of the real subsumption of academic labour to the dominant order. The political realities of Vice-Chancellors as CEOs of businesses for whom the reality is the tendency of the rate of profit to fall cannot be ignored. This places them in the context of networks of neoliberal, transnational advocacy networks. This political reality disciplines the actions that academic managers and administrators can take, either supported by the State or quiescent in the face of its power, and places them in opposition to those academics and students whose labour they need to recalibrate for the market.

As a result we see a range of political actions aimed at disciplining academics and students, including, but not limited to:

Similarly, this has given birth to a range of solidarity actions, communiqués, and free universities, that are not simply a recasting of higher education in liberal terms around the notion of economic libertarianism or cost-free learning (as pervades the MOOC debate). These are deeply political claims for higher learning, and a critique and reclaiming of the university against-and-beyond capitalism.

However, the accrual of executive power within universities acting as corporations and the use of technology as a mechanism for surveillance and performance management, means that the explicit subsumption of academic labour under the realities of competition, productivity, efficiency and profit is inevitable. In this process the realities of force and political will by those with power-to create a dominant order trump individual protests. Force married to political will then invades the cultural realities of civil society, so that no matter how we argue for education as a public good, it is subsumed under the rule of money.

In this process of ensuring that the capitalist is the owner or proprietor of means of production on a social scale, the politics are the thing. How might a counter-narrative be generated that connects academic labour to student protests and the broader work of protests against austerity? What is the role of academic trades unions in coalescing and amplifying protest so that pushing-back against recalibration becomes possible? Or in the face of the logic of discipline and coercion, and a political will amongst networks of legislators and academic managers for recalibration, is the scope for the university to be regenerated as a space of resistance and protest too limited? In fact, is some form of exodus the only option?


A few notes on Pearson and the privatisation of academic labour

The formation of Pearson College enables the education corporation Pearson Education Inc. to leverage: its learning management system and on-line content produced by academic labour; the partnerships that it has with established academic institutions in the UK, like the University of Sunderland and Royal Holloway College; and its connected educational think-tank; in order to gain fees/rents/profits from an emergent HE market.

The possibility that for-profit providers like Pearson College might gain UK degree-awarding powers was signalled in the UK Coalition Government’s response to its white paper consultation, which noted a desire to enable greater diversity and competition by widening access to University Title.

This quickens the process of destabilising academic labour inside universities, and furthers the questioning of the idea and purpose of a higher education that is publically-funded, regulated and governed. Mechanisms for: separating academic labour from other forms of labour inside the university; for surveilling it through mechanisms like the National Student Survey or the REF; and for commodifying and reifying it for-profit.

Critically, the mapping of academic labour onto new terrains opened-up by Pearson College is also tied to the possibility that the HE administration, teaching and accreditation/examination processes might be separated, enclosed and commodified. Pearson Education runs a for-profit examination board, Edexcel and this underpins the idea of accreditation for-profit, which is also developing elsewhere in terms of massive on-line open courses like Coursera (which wishes to tear down the limits of time, geography and money). Here there is a separation of the teaching process from that of examination or of assessment for learning, and the commodification and enclosure of each process.

Ravitch has written critically about the role of Pearson in the privatisation and monetisation of public education in the USA, stating that

tests are the linchpin of the attack on public education. The politicians throw about test scores as evidence that our entire public education system is a failed enterprise.

This has ramifications for academic labour inside a more competitive and enterprising UK HE market, as the government uses secondary legislation to lever open the sector for privatization. Witness the mass outsourcing of services at London Metropolitan University.

As for-profit providers are encouraged into the sector often using the promises of study at a distance using technology as a catalyst, an architecture is opened-up that threatens the public funding, regulation and governance of HE. The profitability of HE partnerships for companies like Pearson Education highlights how educational technology is developed as a way-in both to the extraction of value from universities, and to the recalibration of the purpose of universities to catalyse such extraction further. Partnerships and leverage are enforced, in-part, because academic labour is shackled inside the demands of performativity revealed in the research evaluations or student satisfaction scores. Engaging with external partners like Pearson for service-driven efficiencies make sense for universities that are being recalibrated as businesses.

Thus, the role of Pearson cannot be disconnected from other recalibrations that affect academic labour inside the University, including: outsourcing of services; securitisation and bond financing; learning analytics as a cybernetic mechanism for surveillance, monitoring and the extraction of new forms of value; the militarisation of academic space; the role of venture capital, joint-ventures, think tanks, policy makers etc., as neoliberal transnational activist networks, acting inside education.

Pearson College also signals the possibility that a surfeit of new, for-profit providers will cheapen the costs of academic labour that does not develop proprietary knowledge or skills. This risks driving down labour costs and increasing precarious academic work based on post-graduate rather than tenured staff. Flexibility, redundancy, productivity, privatisation, restructuring, value-for-money, all underpinned by technology, risk becoming the new normal for academics involved in teaching and research. As the discipline of the market enters HE in the guise of for-profit, technologically-rich operations like Pearson College, the spaces that are available to develop critiques of the recalibration of the University are reduced. There is no alternative.

The point, then, is whether academics can develop new forms of labour in new, collectivised spaces, in order that the complexity of their labour as a process inside HE might be unravelled and re-stitched against technologically-enabled, new public management.

However, even here there is a risk of replicating the systemic inequalities that are promoted through hegemonic positions. As Hoofd argues, all forms of activism and innovation risk their own subsumption inside structural regimes of domination. In fact

the current mode of [neo-liberal] late-capitalism relies on the continuous extension and validation of the infrastructure and the optimistic discourses of the new information technologies. Discourses that typically get repeated in favour of what I designate as the emerging speed-elite are those of connection, instantaneity, liberation, transformation, multiplicity and border crossing.

Thus, even those educators who claim to be hacking or co-creating ‘new spaces’ with students, or developing and deploying personal learning environments or massive online open courses as opposed to institutionalised systems, are operating inside structures that were created with the goal of facilitating global capitalism and which contribute to refining technologies of surveillance and control. Hoofd argues that ‘The idea that subjectivities from social movements are in any way less produced by neo-liberal globalisation is highly problematic.’

Pearson, MOOCs, badges, Coursera, PLEs, PLNs [insert your own innovation], therefore, are each developed inside the logic of capital. Whether they can form a front against the logic of alienation is another issue. In 1966 Marcuse wrote that

The incessant dynamic of technical progress has become permeated with political content, and the Logos of technics has been made into the Logos of continued servitude. The liberating force of technology – the instrumentalization of things – turns into a fetter of liberation; the instrumentalization of man.

Our response to the reality of Pearson College might then be the same as our response to Coursera or to Change MOOCs or to bring your own device or to [whatever]. We might ask whether and where it is possible for counter-hegemonic networks to develop. We might ask whether and how academic labour might form a rupture in the existing logic. We might ask whether and when it might become possible to reclaim academic labour for democratic engagements in general assemblies, for militant research strategies against their control by capitalist agendas, and for doing, working or labouring in public, rather than for enterprise.


On academic labour, and reclaiming academic time and space

On Friday 15 June, I attended a University of Nottingham, UCU-branch-sponsored symposium on the public university. These are my notes. 

Quiet down
(We are the dollars and cents and the pounds and pence)
(And the mark and the yen and yeah, we’re going to)
Why don’t you quiet down?
(Crack your little souls, we’re going to crack your little souls)

[Radiohead. 2001. Dollars and Cents.] 

What is the relationship between the idealised neoliberal subject and academic labour? How is academic labour being recalibrated as the idealised neoliberal subject? If we are in transition to the neoliberal university, what are the possibilities for academic labour?

The idealised neoliberal subject is legitimised around specific, commodified practices that are toxic to her subjectivity, in-part through the disciplinary and enclosing nature of those practices. The REF is an example of a process of judgement and ranking with which academics collude, and that forecloses and excludes, and that further enables academic solidarity to be ruptured and restructured. It is the processing and revelation of our otherness. It is the real subsumption of our academic subjectivity inside a commodified reality. It highlights lines of exclusion which teach us that our assimilation is the denial of our subjectivity, and that if we refuse or dissent then we are to be systematically judged. These positions, of engagement, refusal, denial and passivity, are deeply political.

As academics internalise certain logics, in taking money for R&D or implementing processes for monitoring students or in co-ordinating the REF or agitating over student satisfaction scores or in workload planning, it is important to recognise that acts of refusal or dissent mean that the business of new public management now grafted into the university cannot go back to normal. It is important to recognise the place of critical pedagogy in this process of dissent towards otherness or othering, and in developing subjectivity. It is in the messy realities of pedagogy and education as process that the speed of enclosure and capture might be reduced, and spaces for refusal opened up.

As a result of refusal we might reclaim the possibilities of care and caring inside the University. Academics care about their positions and their research and their students, and one outcome is that they and their practices are ripe for being parasitised by techniques and technologies of new public management, which seeks to extract surplus value through agendas that enhance productivity, efficiency, choice and outcomes. Academic time and energy can be co-opted for the development and implementation of such technologies and techniques precisely because academics care about their students and their work, and will dedicate their own time to those projects, beyond their formal working arrangements. This is the trap of the social factory, and it witnesses the constraints for academics of a life shackled to cognitive capitalism inside the fluid structures of higher education.

This issue is important for academics as individual universities adapt to the new normal of funding and regulation and governance models. The response of the government to the HE White Paper consultation demonstrated its political weakness; its inability to get primary legislation on the statute books relating to the privatised provision of HE. Privatisation of English higher education was slowed, although privatisation in English universities is speeding up. In this space which is fed by competing agendas at different speeds what might academics do to recover some agency? Might slow scholarship, which increases the circulation time for the commodities of cognition, be one possible focus for dissent and pushing back? What lessons might we learn from the Luddites’ coherent fight over time, temporality and speed in the annihilation of their livelihoods/lives/subjectivity?

These examples are important because the University is focused on the adaptive upgrading of academic jobs. Of re-stratifying academic labour under new forms of status, engineered by a technocracy that feeds inequality through access to research-allowances or teaching time or student numbers. This is painful because it is transitional. It is a transitional move towards the neoliberal university; a space that is a new site for the extraction of value; a space that is being restructured in the name of capital; a space that limits freedom-of-expression and academic autonomy where it conflicts with value creation. The stereotypical neoliberal university will be a bond-funded, joint venture, either hedged or speculated against, with the use of private equity via spin-off companies, with a need to maintain its global credit rating through reduced staff costs, where the interplay between its fees and ratings are interpreted through analytics, and where those interpretations are ways of disciplining academic labour and discrediting critical pedagogy in the name of pedagogies like constructivism that are co-opted for neoliberalism.

The debts and covenants that emerge from the new public management of funding the University are both pedagogic and disciplinary. As debt to income ratios rise, and as investment-grade bonds are demanded in an increasingly volatile higher education market, where there are doubts about the ability of certain students or groups of students to repay loans, or where there are doubts about the economic viability of certain programmes-of-study, the control of social or human capital becomes imperative. As the attrition on wages, offset in part through increased debt/credit levels, continues, and as value is further extracted from social goods, the individuated value of education becomes a site of struggle. The fee regime and its enclosure of possible futures beyond the rate of profit forms a disciplinary technique. It is in this space that we might argue for the public university: how do universities benefit our public? How should a public university be regulated or funded or owned?

In answering those questions we might try to analyse the neoliberal logics of:

  • new public management (risk-management, internal competition between cost centres, efficiency drives through the use of private corporations that are embedded inside universities etc.);

  • comparative competitiveness (internationalisation agendas, franchising, R&D outcomes, employing magnet academics, responses to the WTO and GATS); and

  • competitive comparison (rankings and indices).

In these logics we see flows of finance and human capital, and universities themselves are revealed as competitive capitals. Through them we illuminate ways in which academic labour might disrupt the cycles and circuits of those capitals. In part this comes as they react to the marketisation of HE and the privatisation of universities, which in turn co-opts temporality and scale to lever performance-management, and through it acceptance or shame. Yet any disruption needs to be developed at a range of scales because capital is parasitic on the university: in think-tanks; through technology and related services; in corporate social responsibility agendas that are educational; in credit ratings agencies; in private equity and financing; in regional and national regulation. In each of these spaces there are different mechanisms through which capital recalibrates the University for value creation, profit and further accumulation.

As education becomes a positional, individuated, competitive good, and as the stakes for individuals rise, we might ask whether we can develop strong answers to the strong questions that are being asked about the purpose of the University. Can we develop alternative narratives based on societal goods? Can we look to Chile or Quebec for some possible alternatives to these practices? Can we analyse how BPP/Apollo, or Pearson or Kaplan or McGraw Hill are leveraging their own market capitalisation to crack the university? Can we analyse how those corporations are using their established infrastructures and content to extract data/analytics about behaviours that might then be commodified as services for students? Is it possible to reconfigure universities under a general public license or as a co-operative form? Or can this only be achieved beyond the university?

In this process, time is important. Capital seeks to annihilate the space between commodities and consumers by reducing the time it takes to produce and/or circulate goods. As bond-funded initiatives, or private equity leveraged against future loan incomes, are based on 30/40 year life-cycles, there is a demand to reduce volatility and risk, and variations in behaviour, and to control time. So capital wishes to fund programmes that enhance the ability of students to get jobs and pay down their debts, or institutions that can innovate in order to pay down their debts and covenants. Time and variations in behaviour are a risk, especially where they relate to asset illiquidity. Thus the state wishes to control resource allocation and budgeting, in order that it can reduce volatility/risk/defaults, and thereby create a set of spaces in which capital can grow.

In this process temporality is important. Internationalisation, rankings, social mobility are all agendas that tend towards offshoring or the virtualisation of the University. They are parasitical of local needs, feeding off spaces rather than learning with them. They prioritise jobs and mobility away from certain spaces, above justice and access. They do little to reclaim a University’s local identity. They are levers for catalysing the market mechanism that systematises competition, and which detaches academic elites from temporal space. They are transnational and have the same damaging effects on local priorities as transitional financial elites. At issue is how might academics fight for their local, temporal space? Or inside-and-against the university, is there no alternative?

Thus, as public universities are realigned with the values of the market, which sees an aggregation of individuals providing all necessary regulation, funding and governance, we might ask how can more dialogical and collective forms of higher learning be fought for? What might we do in our militant research strategies and in public to strengthen democratic engagement and critiques of new public management? Do we stay and fight for the academic project inside the university, to forge something that is beyond? Do we argue for new forms of governance and funding and regulation in the name of the public? How do we provide strong answers that push back against the violent recalibration of university life and academic labour, and which might reclaim academic time and space?

You got to know when to hold ’em, know when to fold ’em,
Know when to walk away and know when to run.
You never count your money when you’re sittin’ at the table.
There’ll be time enough for countin’ when the dealin’s done.

[Schlitz, D. 1978. The Gambler.]