Wednesday 13 September 2017

Who represents business?

Dethroned guru: some reports suggest that he has lost the beard.

Dave Cameron's government tended to have an over cosy relationship with big business. When Theresa May came into office, it was apparent that she wanted to distance herself from big business as part of her appeal to the just about managing, although many suspect it was eminence grise Nick Timothy who was really behind this stance.

In any event the May Government's relationship with business has subsequently blown hot and cold. Business (by and large) wasn't happy about Brexit in the first place, but has been even less unhappy since then about the uncertainty that has been created (secret deals for Japanese car manufacturers aside).

The CBI has had an up and down relationship with governments. It was at the peak of its persuasive power in the tripartite structures used by both Conservative and Labour governments in the 1970s. Mrs Thatcher regarded them as corporatism incarnate and preferred to talk to the more ideologically sound Institute of Directors. They were rehabilitated under John Major and were seen as on message by Tony Blair who wanted to make New Labour 'the natural party of business'.

Now it has kicked off again. It started when Downing Street tried to get companies to voice their support for the Government's exit strategy which they were understandably reluctant to do. The stance taken on immigration has upset some companies.

Further offence has been caused by the failure to invite leading business lobby groups to a meeting at Chevening, the country residence available to Brexiteer ministers. The CBI, the Institute of Directors and the Association of British Chambers of Commerce have all been excluded. Senior business people are expected to attend, but there is some suspicion in business circles that it is a public relations exercise to show that Government is 'listening' to business.

I think there is a possible alternative explanation. When I was involved in the Organization of Business Interests project in the 1980s, the German leadership (Wolfgang Streeck) were preoccupied with the German associative state model which they saw as the norm. I had an uphill struggle to persuade them that in the US and the UK, a company state model tended to prevail with direct interactions between big companies and government being the norm. I also pointed out that big companies were forming government relations divisions to make their operations more sophisticated.

One interpretation of what is going on is that the Government is simply adhering to the British company state model and dealing direct with companies.

BTW, the FT had a very interesting article on the role of Vereine in producing a particular political culture in Germany recently: Clubby Germans

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