POINTS OF VIEW
8029 – Economics 2 - Competition or Co-operation
The philosophy of market capitalism now revolves around competition. Competition is supposedly what drives the most efficient markets.
This is emphasised by business schools and by managers alike: competition is what creates the greatest wealth and the best performance. This competition is, of course, meant to be between different organisations in the same market. It is rarely mentioned that, regrettably, competition takes place just as much within the organisation, as part of the fight for control of the organisation or bits of it. It is what modern business is about. The best rewards go to those who win.
The problem with all of this is, of course, that what has been promoted -- at every level -- is a form of warfare. Whilst it is true that warfare can bring bursts of progress for some people, it also brings out the worst in most people.
The paradox is that the market is at heart a co-operative venture. If people don't work together there can be no market. In this context, the market should be used co-operatively to obtain the best performance over all. If people do not co-operate in the first instance, there would never be a market. This is not, of course, implying that people should no longer strive to do their very best. It means that the very best is there because it makes the best contribution to the overall cooperation.
The acid test, is I suppose, to what extent does the philosophy encourage people to undermine the efforts of others -- and hence, whilst improving their own domination, reduce the overall performance. This can be seen at its nastiest in American elections, when negative campaigning tends to be prevalent; as was seen at its worst in the 2004 Republican campaign. You win by making your opponent even more despicable than yourself.
However, the essence of civilisation, since we first emerged from the hunter gatherer period, is that we have co-operated together. Initially this was in family groups and then villages. Then it was in nations and now we are moving towards global co-operation -- with just a few exceptions, especially the US, desperately trying to hold us back. The problem with competition is that places the emphasis on what the individual can get out of the system rather than what the individual can contribute to the overall performance; where the whole is greater than the sum of the parts. Jack Kennedy’s statement, in his inaugural address, asking the audience to think of what they could do for the nation is as true today.
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