Risk: The human adventure
by
Published by the European Science and
Environment Foundation, 2001
Contents
Introduction
Part One
Chapter One: Risk, probability
and gambling
Chapter Two: Risk Society:
Its proponents and opponents
Chapter Three: Risk and morality:
Martyrs, military men, mountaineers and feeding the millions.
Chapter Four: Risk and profit
Chapter Five: Nature, the
risk taker
Chapter Six: Trust and the
political management of risk - and a proposal
Chapter Seven: Managing risk:
throwing the precautionary principle to the winds
The Adventure of Risk
by
INTRODUCTION
“Risk is the chance that
something adverse will happen” – The Health and Safety Executive, UK [HSE,
1988]
"The word 'risk' derives
from the early Italian 'risicare', which means 'to dare'. In this sense, risk
is a choice rather than a fate" - Peter L Bernstein [Bernstein,
1996]
Risk
is a lovely subject. But it is a difficult one. Still, we mustn't risk being downhearted.
We must keep our nerve. We need to see who we can trust in such a tricky
matter. We need to know what evidence about these matters we can believe. These are the subjects of this short book:
nerve, trust and evidence. An important further message is about social
responsibility: we owe it to risk-takers in the past that we are now well-off;
we are now – as societies – taking further risks to get what we want. We owe it
to one another not to bleat when some of the risks go wrong.
We
know we can think about risk in very sophisticated ways virtually without effort.
We cross roads every day, after all. Many of us find our most intense pleasure
in betting shops, where risk is almost all that is discussed, and it isn't our
failure to understand the nature of betting which makes us losers but our
failure to understand equine quadrupedalism.
Of
course, views on risk are very diverse. Our bank manager seems averse to it whenever
we seek to interest him in our new ventures. Doctors one minute tell us butter
is a big risk, the next that we can wolf it down to our heart's desire.
Greenpeace and others say the entire planet is at risk. They would have us
eschew all research on genetically modified plants: a response to a new technology
almost as silly as that of government ministers who say we shall only proceed
with it when it is proved that there is no risk attached to the project.
This
book does not dwell on the risks which are the most fun: the risks of sex, sport
and intoxication. It is, in a way unfortunately, about more serious matters even
than those.
It
argues that so far as we can guess, our age has been, and may even remain, quite
a safe one. The risks we produce are much more threats to our ideas of naturalness
than to our health or even to that of the planet. In other words, our equanimity
is more at threat than our physical well-being.
It
argues that, as members of society, we benefit hugely from much risk-taking and
should try to accept the consequences of risk when they are bad as well as when
they are good. It argues (Chapter Seven) that the management of risk by the government
cannot be as precautionary as many fashionable voices demand, and yet could be
far more intelligible and intelligent than it now is. These are issues not so
much of risk, as of trust.
This is isn't a text book about the mathematical ideas of
risk which underlie these minefields, though I hope newcomers to the subject will
find (especially in Chapter One) enough of a starter's pack to get them going
with the issue.
All
these issues would be of interest at any time. They are of special poignancy now
because, as we discuss in Chapter Two, there is a modern industry, comprised of
media, law and campaigning NGOs - and their adjuncts in academia - which is
using risk as a handle to claim attention and income. They wouldn’t put it that
way, of course. They claim noisily that they are pursuing the citizen's rights
against overweening vested interests in industry and against the indifference
of the regulatory authorities. But when they create unnecessary anxiety, rather
than assuage it - they are up to no good, and it is worth pointing out the
damage they are doing. They are one of the larger risks we face.
Chapter Three will put a wide range of
risk-taking into a moral framework, the better to make its point that almost all
risks of the kind we are supposed to worry about so much now, the risks to health,
safety and the environment, are worth taking.
Chapter
Four then tries to put risk-taking into an economic framework, the better to develop
some ideas about how economic and health, safety and environment (HSE) risk-taking
can be compared. By the way, we use “HSE” to cover almost all non-financial risk. I am taking
it, therefore, to cover what might be called cultural risk, or the risk to our
mental well-being.
Chapter Five addresses the way risk-taking
occurs in nature, which matters especially since the emerging aversion to
risk-taking stresses that modern risks are an affront to it. Nature, too often
seen as an icon of stability, co-operation and fragility, is more truly seen as
a world in which nerve, gambling, opportunism – risk-taking – are for ever in
evidence.
Chapters Six and Seven put risk into
a political context. The first of these considers how to remedy what might truly
be called the modern crisis of trust. It proposes a new institution might assess
risks and their regulation. The second describes how the state cannot be as
cautious about risks as it is fashionable now to suppose it must be.
This
short book adds to, and discusses, a burgeoning literature on risk. There is the
literature of alarm, and a much smaller one of reassurance. Mine is a contribution
to the latter. However, I claim that reassurance is no use in genuinely scary
situations, as we discuss in Chapters Six and Seven, which look at some
specific cases of the management of risk. Indeed, reassurance can be harmful,
and not merely to truthfulness. I am keen to say that the world is a safer
place than is commonly supposed, but I loath the creation of a false sense of
security almost as much as I disparage alarmism. Still, the world is quite
dangerous, and we will be happier when we accept that is the case.
I
will claim that a healthy, commonsense view can still be deployed to make sense
of the world we live in, and that a "reality-check" will leave us largely
reassured.
The
book argues that it is far too easy too assume that we should always be aiming to
reduce risk. Most often, it should be optimised,
which may not at all be the same thing. [Wildavsky, 1988] We need to be as sure
as possible that we are getting a good deal from the risk-taking we are involved
in. Assessing that deal will often lead us to suppose that our lives are only
as risky as they more or less need to be, and that we wouldn't, actually, have
it otherwise. I stress that the downside of modern risk-taking is regulated
democratically, and the benefits spread very widely. Risks have been socialised, and that ought to make it
easier for us to bear the occasional mistake, or even disaster.
The Anxiety Industry especially stresses,
to the contrary, that many modern risks are involuntary and unwanted. They
might have added that this is worrying because it means that some risks are not
in the proper sense a gamble. Some risks, they might claim, are not offered to
us in the way that a gamble should be. That is to say, many risks are imposed
on us without our having the right to refuse to accept the gamble involved. But
this view is in important respects flawed. Much modern risk is indeed involuntary,
but quite often they are in the way that taxation is involuntary. Other risks
are involuntary in the way that ill-health is: they are now a part of our
world, as though they were old-fashioned natural risks. But this needn't worry
us as much as is often supposed.
Risk-averse opinion stresses that people
feel alienated from conventional society and conventional authority. We don’t
know who to trust; we feel exposed. The left and its green allies (as we discuss
in Chapter Two) has always claimed that the powers-that-be are lining their
pockets at our expense, and conducting power politics so as to suit the governing
classes. The Anxiety Industry adds to this old case the idea that industry and
government are putting us at unwarranted and unregulated HSE risks as they put
their short-term ambitions before the well-being of the powerless and the
unborn.
There is a useful analogy here between
economic and other risks. There is a battle between those who believe that
industrial capitalism is largely benign economically, and that the less regulation
of it the better. There is also an argument about the role of industrial
capitalism in imposing risks in the realm of HSE. Whether business is imposing
economic risk or HSE risk, there is a legitimate argument about the state's
role in regulating capitalism and in saving people from the consequence of
risk-taking.
There
is especially an argument about the equitability - the fairness - of industrial
capitalism as it spreads (or fails to spread) wealth and spreads (or fails to spread)
risk. The argument applies just as well in HSE as in economic terms.
Are
economic and non-economic benefit and risk fairly spread in society? Are those who
are put at economic and HSE risk by capitalism fairly included in the benefits
which are supposed to accrue? My answer is a strong but qualified "yes"
in both cases, which I think are much more similar than might be supposed.
Only if we look realistically at risk
- at its benefits, at the difficulty of regulating it - will we begin to assess
whether our own system has framed its approach well. This book will argue that
the British have handled the issue rather well. But we have done it best when
governments have been robust and honest. Even then, they have usually - and
dangerously - added to risks because they fail to stress that risks are inevitable,
worthwhile, and as much as possible a matter for the individual.
Chapter One
Risk, probability and gambling
Risk
is all kinds of things one doesn't at first expect of it. It is more likeable than
is often supposed. We gain more from it than many suppose. However comforting
some of the things one can say about risk, it is certainly about bad things, or
things we do not want. But not at all bad things are classed as risks. Death is
not of itself a risk: it is a certainty. We think ourselves at risk of death
only insofar as it is untimely. So we can see that where there is no element of
uncertainty, there too we do not find risk.
In brief, risk is the downside of chance.
And chance is the well-spring of the gambles which humans take all day, every
day.
A brief history....
There
is some lovely writing about risk, but perhaps the clearest modern account comes
in Peter L Bernstein's Against the Gods: The remarkable story of risk. [Bernstein, 1996] One merit of the book is
that it is aimed at a middle brow reader. There is hardly any algebra. This is
an intellectual history which comes across as a detective story. Its author is
a professional investor, and he enjoys seeing the world of gambling compared
with that of finance.
From this account we can understand how
the mid-seventeenth century mathematicians Fermat and Pascal were engaged in
getting at the numbers which lay behind gambling. There was obvious fascination
in this work, but also a sort of frustration. One mathematician, the late seventeenth
century Frenchman, de Moivre, seems to be pointing to it when, as noted by
Bernstein, he writes: "I wish I were capable of... applying the Doctrine
of Chances to Oeconomical and Political uses...". Actually, he did,
because he was consulted by insurance brokers as well as by people seeking success
at the gaming table.
The
story becomes thoroughly modern when it includes epidemiology, which emerge as people
begin to gather data about the world
around them. This was about measuring the world, but its events not the physical
characteristics which underpinned them. Francis Galton, the great British
statistician, is quoted by Bernstein thus: "Wherever you can, count".
This
is the emergence of a Gradgrind world, excoriated by Dickens in Hard Times in 1854.
Gradgrind took the romance out of life, of making lists and treating people as
cogs in a machine, as manipulable as their behaviour was calculable.
We can see that there are two different
threads to the story. One is to uncover the mathematical expression of
probability and the other is to uncover the patterns in statistics.
Much
thinking about probability began with trying to find some order in the least likely
place, games of chance.
Much thinking about correlations began
by looking for order in statistics, often those gathered by the state. They
typically concerned health: what common factors united several or many people
who got ill in a particular way? The cause of an infection, say, could be
traced to a particular tap because it was at the centre of the known cases of
illnesses, and was the only thing in common to all the victims . Importantly,
epidemiology doesn't depend on knowing much about cause and effect. It does its
work by inductive reasoning from data, not by empirical scientific work on the
world reported in the data.
The intellectual excitement about probability
and correlation is that they are entirely to do with patterns of occurrence and
re-occurrence, and not at all about knowing anything mechanical. You need not
know any Newtonian physics to be a good player of black jack, craps or
roulette. You wouldn't even need to know that a dice had been involved in
producing the runs of numbers which allow one to predict the odds arising from
them.
Similarly, it wasn't an understanding of medicine which led
researchers to the understanding that smoking lay behind a massive increase in
lung cancer. The evidence was circumstantial, to do with correlations [Doll and
Peto, 1981].
Peter Bernstein is especially useful
when he identifies a curious paradox in thinking about risk. In the classical period,
he supposes, the Gods were capricious, and a man's fate both certain and
unpredictable. The medieval European mind believed in one God who was capable
of anything and of absolute control, except that a man was unnervingly morally
responsible for some part of God's work and purpose. Still, a degree of fatalism
was understandable in man, and men did not feel they could much predict and
still less control the future. Bernstein says that moderns came to realise that
human beings are not totally helpless in the hands of fate, nor is their
worldly destiny always determined by God.
“The
Reformation meant more than just a change in humanity's relationship with God. By
eliminating the confessional, it warned people that henceforth they would have
to walk on their own two feet and would have to take responsibility for the
consequences of their decisions.... But if men and women were not at the mercy
of impersonal deities and random chance, they could no longer remain passive in
the face of an unknown future. They had no choice but to begin to make
decisions over a far wider range of circumstances and over far longer periods of
time than ever before.”
They
had, that is to say, a huge interest in becoming efficient at predicting the outcome
of their actions. They had to become more efficient gamblers, and they had to
take the chanciness out of much of what they did.
Defining risk
Some
risk specialists use the word "risk" in a way which is too difficult and
unusual for it to be worth holding in our minds very long. However, it does help
us see that the matter in hand has two essential elements. First, it is about
assessing the probability of an outcome, its likelihood, the odds of its happening.
Then, secondly, there is the degree of nastiness of the outcome, or the hazard.
[Royal Society, 1997]
The specialists usually say that risk, strictly
speaking, is the probability bit of this equation and that it is quite separate
from the hazard part. But normal parlance uses risk as covering both the
probability of an outcome and the seriousness of the outcome, and that's how I
shall go on.
From our point of view, risk will be
a compound of the likelihood of a bad outcome, and the degree to which we dislike
the outcome. But the specialists are of course right to see that risk has two
completely different parts. Often they go in different directions. A low risk
can arise out of a very low probability of quite a bad outcome, or a high
probability of an insignificantly bad outcome.
Assessing risk
There
is a large and useful effort to try to quantify risk. That is, there is a long tradition
of attempting to study the mathematical underpinning of the idea of probability,
and to refine the business of prediction and especially the business of trying
to express it numerically. There is also an attempt to quantify, codify and
cost the seriousness of outcomes.
Of course risks vary in their predictability,
and not least in the degree to which an event is likely to occur, and then -
quite separately - in the degree of their seriousness can be foreseen.
Risk as gamble
People
thinking about risk will always find themselves thinking about vulgar betting as
well as thinking about lofty probability. This is because an important dimension
about risk is that it is not just about the downside of damage and pain which
may follow any action. There is also the crucial matter of what one hopes to
gain from the action. Is its prospective positive outcome worth its hazardousness. Is it a good gamble? Is it - as
we say - a good risk?
We
must steer between impulses, fears, desires and above all we must weigh the probability
of good outcomes against the probability of bad outcomes in absolutely
everything we do. This is to say: we take gambles in all we do. This is as true
of our romances as it is of our choice of profession.
Making a bet requires a prediction -
often a precise, numerical one - as to the likelihood of something coming to pass
in the future, whether good or bad. Secondly, making a bet always involves turning
some future event into something with a risk attached. We hook our well-being
to the outcome of a future event. Thirdly, a bet often betrays the degree to
which one is prepared or compelled to take a future event seriously. And
finally, considering risks as a bet also allows one to see how subjective and
personal risk-taking is.
Interestingly, an exceptionally desperate
person might be very like an exceptionally relaxed person in accepting a long
shot: the anxious person might feel that only with one last dramatic gamble
could his position be redeemed whilst the other might feel that only a dramatic
throw imparted any excitement at all. When bookies make their odds, they
attract people who read those risks in very different ways.
There is a big "apples and pears"
problem with costing damage, or fretting over hazard. Is injury to fifty people
worse than a death to one? And so on. Should
we reach out for big gains, attached they often are to big risks, or cultivate
contentment with our current lot?
However difficult these issues, we are
bound to go on discussing and assessing the future, not as though it were a book
written by an alien species whose codes were impenetrable from the start, but
as though it were like a book in a foreign, but not perversely and deliberately
impenetrable, language. The future is a foreign country, but they do things
according to rules there.
For working purposes, we can imagine
and suppose that if we knew enough about the world we would know what was going
to happen next. In practice, we often do not know what is going to happen next,
because we cannot hold in our minds enough of the factors which would be involved
in more accurate prediction, or do not know enough of the underlying mechanics
anyway. However, we can do something very counter-intuitive but completely
normal with unpredictability. Instead of throwing up our hands and accepting
our uncertain (ie, unpredictable) and yet all too certain (ie, unavoidable)
fate, we can discuss and work with the idea of probabilities.
In
other words, though we know the world is uncertain, we can make a stab at working
out some probabilities. We can do this crudely, by wondering whether some event
or other is certain, probable or merely possible. Or we can get very precise
indeed about the matter and start saying things like, "there is a one in
twenty chance that such and such will happen". Sometimes we can be pretty
sure that such predictions are accurate. A dice thrown enough times will behave
with a degree of predictability which, over sufficient runs of throws, approaches
mechanical regularity. That is, given long enough and sufficient numbers of
runs, each run will produce an aggregate result which looks just like the
others. Statisticians call this the "regression to the mean", and it
carries with it the implication that gamblers who believe that they are
enjoying "runs of luck", or are "on a roll", are fooling
themselves when they believe that any appearance of a recent consistency of
outcome in their favour is likely to be continued.
All the same, the outcome of any particular
throw is unpredictable: within the range of possibilities, any is as likely as
any other. The law of averages describes such events well and clearly, but it
is a law which only talks about the likelihood of a class of things, and not
about any particular individual event. The fascination of a dice is that it is
like a boring machine only if we run throws of it long enough to see the
patterns that emerge, but can be incredibly exciting in its unpredictability as
to the result of the next throw. We know very precisely the odds of a certain
number coming up in a throw of the dice: but it is important to note that this
is a matter of being precise about our degree of uncertainty of a particular
number coming up.
And the excitement about these uncertainties
is vastly increased, of course, according to what bet is riding on the dice. A
pattern will emerge across many throws. But the next throw of the dice will
remain as unpredictable as each of the others was. A very clever and lucky
gambler will get rich because he understands not merely the behaviour of the
dice but the folly of the people he is playing against as they judge things
more wrongly than he. Mind you, it is likely he will end up poor because he
loves to gamble, which is to be in love with risk itself, and leads people into,
not merely the gamble they can win, but the gambles which are too dangerous to
succeed. As Al Pacino, in Martin Scorsese's film, Casino, remarks: the house
never loses if only it can keep a gambler at the table long enough.
Most judgements are far trickier than
the likely outcome of one or a hundred and one throws of a uniform and symmetrical
cube. Whether a nuclear power station will blow up, for instance, is far harder
to predict.
This is
odd, in a way. Because so much talent has been expended on the safety of power
stations, I would pretty freely predict that a British nuclear power station
will not blow up tonight, and will do so with greater confidence (but also
greater anxiety) than I will predict the outcome of the next throw of a dice I
now hold in my hand. In fact, I do know the odds of a particular number
coming
up on the dice, and however clever the efforts of safety experts and of statisticians
working with them in working to make power stations safe and expressing degrees
of confidence in the matter, I know that I do not know the odds of a power
station blowing up.
But I remain confident about nuclear
power in Britain. The confidence is importantly misplaced. However hard we try,
and we try very hard indeed, we have absolutely no knowledge about the future of
a nuclear power station's operation, whilst we know all the little there is to
know about the future of throws of dice. We can readily see that it is not merely
the seriousness of the outcome of an accident at a nuclear power station which
makes it an interesting risk to think about. Of course, the outcome of the
nuclear power station's going wrong is far more important than any throw of any
dice I ever heard of. But at the heart of the risk is the difficulty of being
quite sure enough of systems of any complexity, involving heat, pressure or toxicity
- all of which are at work in nuclear power stations. The key difference here
is that a gambler with dice has merely to understand a given and quite simple
system, but the gambler with nuclear power is working with people who are
trying to change the odds of a very complicated one.
Even beyond unpredictability, there are
elements here that will lead us into very deep water later. A nuclear accident
is serious out of all proportion to the seriousness of its effects on the
people it directly effects. That is usually, actually, rather a small number.
The worst nuclear accident we have ever seen, or know about, Chernobyl, might
kill perhaps 10,000 people over the fifty years from the great explosion of
April 1986.
Why do the rest of us think the risk from Chernobyl
is so serious when it hasn't affected us? Presumably, the reason is that
Chernobyl's going wrong symbolises to us the possibility that another, any other,
nuclear power station might go wrong and be similarly serious but nearer home.
Or is it that nuclear power has, well beyond the likelihood of its damaging us,
a certain mythic power to frighten? Can assessing its risks better help us to
see that we need to put aside at least the superstitious part of our fear so
that we can address the real risk for ourselves with unclouded judgement? These
matters are discussed in Chapter Five.
We certainly need to address the matter.
We are at present in the grip of irrational approaches to risk which make us
unhappy. But it is not coolness or rationality alone we need here. There is an
element of what might be called emotional literacy which is in short supply,
and which needs also to be called to the aid of progress. It would be fatal to
this enterprise of understanding and accepting risk better if it was thought
merely to flow from the intellect, and that it put at a discount the emotional
makeup and needs of real people.
One
of the most pernicious aspects of risk-averse greenery is that it contrives to seem
decent and feeling whilst the risk-taking capitalist or the scientist is characterised
as heartless. This is dangerous nonsense.
Risk and money
The
gambling analogy will come up quite often, and is useful not merely because the
mathematics of gambling are the same as the mathematics of risk. The insurance company
gambles that your premium has been calculated to provide decent odds in their
gamble with you that you won't lose your stuff or have it stolen. The life
assurance company bets you that you won't live as long as you hope to. Or rather,
they bet that of any thousand people they insure, no more than a certain number
will be robbed or have alarmingly long lives. Of course banks and insurance
houses like to festoon themselves with marble and their employees are required
to look and sound tremendously respectable, but that is because their real work
is like a bookie's, and not because it isn't.
Firms
need us to believe them when they say they are solid and reliable. They are, after
all, crucially institutions which need us to believe they will be there in the
future when we need them, and that they will be as good as their word. In these
matters, their reputation for reliability is as important to their business as
such a reputation is to a bookie, and for much the same reasons. They are
taking our stake for various bets, and must seem likely to be able to deliver
on their promises, even in the bad times.
Risk and life
There
is risk, not to say gambling, all around us. When we marry, we say we will take
a person for good or ill. We are throwing our lot in with their genes as they are
with ours. Tests for genetic defects are merely attempts to reduce risk, and
improve the odds of the bet we make about our offspring. Genetic testing, and
the abortions to which it gives rise, are a form of eugenics. They are an attempt
to take at least some of the chanciness out of procreation.
Interestingly, the life sciences are
now likely to have a powerful effect on the insurance market. People will soon know
much more clearly the risks they face, and be tempted to try to insure against
them in a market they are bound to hope will remain ignorant of their case.
Insurance firms, to look at this the other way up, will be bound to require
potential customers to let them inspect their genetic material for the same
information.
Every course of action implies an opportunity
cost: we are betting that the outcome of this set of options is better than the
likely outcomes of the line of options we are eschewing. This is true of
absolutely everything we do in life. It is only a slightly clumsy way
describing the way we arrive at an assessment of where our interests lie in almost
everything we do. In some things, it is not a clumsy way of describing something
simple, but an essential way of simplifying what would otherwise be dauntingly
complex.
The difficulty for us in seeing life
properly in this way is that it can seem so unromantic and bleak. It would rob our
life of much of its romance and honour, and almost all of its glory, if our choices
were seen to be calculated for their likely capability to deliver preferable
rather than disliked options. We do not want our lives to be seen to be driven
by a calculus of empirically-derived self-interest. We would rather be seen as
living by principle or impulse. Actually, of course, we can turn this on its
head: understanding risks give us a wider, not a narrower, field in which to
make moral choices. That we can calculate risks better than our forebears
reminds us, actually, how much courage we need to face the risks we sense
ourselves bound, and honour-bound, to take. This is the subject of Chapter
Three.
The
use of the gambling analogy might seem inappropriate to discussion about risk, in the sense that gambling
is about assessing the odds of a desired outcome and working out how much one
would be prepared to lose to be in with a chance of gaining this or that reward
if one's guess, hunch, assessment or punt was the right one.
Risk seems at first sight rather different.
It seems just to be a way of assessing how horrible the future will be. At
least, that is how those who want to warn us against taking risks would want us
to see the situation. They try to persuade us that certain risks are very real,
large and intolerable. But actually, riskiness is often a gamble turned on its
head. Most gambles are about parting now with something you want (your money,
your freedom) in exchange for the chance of something you want more in the
future (larger sums of money, security). Taking a risk is often like that: you
must risk falling into the river in order to get to the other side, and you
must risk dying of a new vaccine to see if it works or not. But the risks which
are more commonly of interest to us are those which are posed as risks to the
future or to other people or to the environment which may unfold as a result of
some action we want to take now.
Chapter Two: Risk Society:
its proponents and opponents
The proponents of risk society
Something
quite new has happened: people have found a way of getting a living out of risk
and the anxiety it causes. We have seen the emergence of an Anxiety Industry which
masquerades as a campaigning movement quite different from the protest movements
of the past. Historically, these have had largely altruistic purposes: the
abolition of slavery, the rights of women, the welfare of animals, and so on.
In our own times, the peace movement worried about a threat to innocent people
and was determined to combat it, whether it was concentrating on the H Bomb or
on Vietnam. Much more recently, the human rights movement has an obviously
altruistic focus. In particular, the green movement purported to defend
inarticulate nature.
These causes may or may not have been
pursued by grandstanders, humbugs and the vainglorious, as well as the more
plainly virtuous, but they could all claim - and frequently did, many of them -
to be on a disinterested quest for justice. They were often dominated by people
with a political agenda, and these were almost always of a left-wing sort. But
still, they were at least notionally outward looking.
Now, though, we have the Anxiety Industry.
This is the industry whose product is complaint, dissidence, litigation and
regulation. Its worst practioners are professional whingers whose chief outcome
is organised neurosis. Its prevailing fault is gracelessness in the midst of
well-being. It is composed of a powerful triumvirate comprising lawyers, the
media and campaigners. The medical profession has a walk-on role when its
practitioners are prepared to lend professional weight to the cause, but where
professional medical people won't be sufficiently helpful, the industry is
generally happy to turn to charlatans, alternativists and freelance therapists
to add noise if not substance to its litany of complaint. The movement is
characterised by people who are attention-seekers in their own right, though
they claim to be seeking attention for others.
There are several striking features to
the Anxiety Industry, and they are captured by the idea that this a consumer movement.
It is supposed to be about us, or about a class of person amongst whom we might
soon find ourselves.
It depends on creating victims and then matching
them with largely manufactured villains. The modern world is not short of
people prepared to characterise themselves as victims [Furedi, 1997; Furedi, 1999;
Times 1998a]. It portrays life as a sort of horror story which might unfold
around any one of us at any moment. A wide range of problems which once used to
be regarded as bad luck, or even one's own fault, can now be blamed on an
industry or industrial process, or on institutional failure. These are seen to
be worthy opponents, who in any case shelter behind a barrage of lawyers and then
behind insurance firms. There is an important emerging debate about the status
of scientific fact as victims claim that
they have been damaged by products and processes sold or run by villains.
In the classic case, it is now widely
but wrongly accepted that cigarette manufacturers cause smoking. Pandering to a
craving is now confused with causing it. More specifically, almost any act of
carelessness can land a firm or institution in difficulties. [Times, 1996] In
many of these cases, there are campaigns for the victim to approach for
support. The campaigners will know the ways of the media, who enjoy such rows.
Lawyers will quickly become involved, on a contingency or piece-rate fee basis.
Many of these have to put their natural scepticism on hold as they pursue
claims for which scientific evidence is wafer thin. However, if the “litigious
society” seriously takes off in the UK, we can expect to see defence lawyers
beginning to match the “ambulance chasers” and their eloquence. Already, some
lawyers are challenging the primacy of “junk science” [Financial Times, 98].
The
medical profession is augmented in pursuit of victims by academic researchers, who
will often be prepared to put their reputations on the line for this or that
hypothesis. Modern academics need to be famous and to be published: the funding
of their departments and the flow of students depends on it. Controversy is a
dangerous game for academics, but it is a deeply attractive one.
Some of this activity is merely and even
laudably the expression of free people in a free society. There is even an argument
that the litigious society, in which individuals seek redress from corporations
and institutions, produces a cheaper form of industry regulation than would a
state-run apparatus. It may be a cheaper way to control risks. Thus, it may be
cheaper for society to regulate McDonalds [Times, 1996; Furedi 1999] through an
individual occasionally suing it for a coffee burn, as has happened, than to
make coffee-purveyors safe by a costly system of regulations and policing which
raises the costs of entry into the coffee-purveying business.
But there is at least one major difficulty
with this approach. It tends to produce vulnerability. It creates a situation
in which being vulnerable is in general quite a useful strategy. Being stoical
and resilient becomes inefficient. Self-restraint is at a discount. Composure
is counter-productive.
The Litigious Society and the Blame Culture
have led to a proliferation of claims, not all of them pressed to the point of
legal case, arising out of a vague sense that modern life - its economy, its
products, its science, its institutions, its most private familial arrangements
- is somehow, and multifariously, sick. Its working life is especially supposed
to be sick. [Sennett, 1998]. People believe themselves to suffer from stress,
anxiety and dysfunction imposed by modern society, and to be so wherever modern
society touches them. Modern life is thought, somehow, to be more demanding
than was historically the case. [Telegraph, 1998a] People variously believe
themselves to be in some way chronically at risk of addictions, phobias,
allergies, anxieties. They seem to have caught dysfunctionality as children
[Furedi, 1998], workers, and parents, from the similarly afflicted people
around them, and from society in general. [Strex, 1998; ]
All
these cases are about risk: the risk one suffers from being exposed to a sick society.
It is easy to think that this picture
must be an exaggeration. But consider the language of advertisements for
organic food, for health farms, for a thousand quacks and therapists, for dozens
of therapies and potions, for hundreds of skin and hair care products. Consider
the plethora of legal cases in which people claim damages for all sorts of
suffering which even two decades ago would have seemed risible.
The crisis of
expectations
The
Anxiety Industry supposes that modern people
endure particularly modern risks. This position does not suppose that this is a
society in which people die young, or especially unexpectedly. (That would be
manifestly absurd, granted that life expectancy has now risen to 85 years for
men and 88 for women.) They are not presumed to live in fear, as their
forebears did, of a vast range of diseases about which no-one could do anything
very much. They may even live in unpolluted countryside, enjoying the fruits of
an apparently well-regulated environment. Birds may sing all around them, and
foxes disport themselves on their lawns. But they may yet live with an unease
and an anxiety which is somehow more systemic, more endemic, more intrusive,
than that known by previous generations.
We sense that many of our modern problems
perversely arise out of a crisis of expectations. When one expects many
advantages, a little disadvantage becomes insupportable.
There are two particular pieces of new
expectation failure which are worth mentioning here. One is people's growing
inability to put up with having to wait for anything. We have so much delivered
to us, and can get everything so quickly, from cakes to credit, that a queue -
whether in a shop or in traffic - strikes us as irritating. This has produced
its own crop of syndromes, corraled together as “rages” of one sort or another.
[Times, 1999]
Second, we spend so much time consuming
goods and services in the privacy and comfort of our homes that we are
intolerant of the problems which arise from being amongst our fellow man, smelly,
noisy, inebriated and similarly intolerant as he is, just like us on a bad day.
Modern people are not well trained to
exercise the patience, or the tolerance and courtesy, which make life in private
and public tolerable and enjoyable. Lacking the training, people behave inconsiderately,
which compounds our sense that social life has deteriorated.
Surely these features of modern life
- these failures of self-restraint – further help explain "road rage"
and the other manifestations of short-fuse which afflict us? Our expectations have turned many of us into people
it is rather risky to be around.
All in all, it becomes easy to believe,
as many do, that we need to beware of a new HSE risk which is endemic to
capitalism. It is a risk to our psyche, and to our nervous systems. The psychologist
and broadcaster, Oliver James, claims that commercially-inspired aspiration
lies behind a dangerous, modern level of unfulfilled expectations and invidious
social comparison. In his Britain On the Couch [James, 1997] he argues, "Put crudely, advanced
capitalism makes money out of misery and dissatisfaction, as if it were
encouraging us to fill the psychic void with material goods".
He's right, though he takes his case
in peculiar directions and doesn't draw the right conclusions from it.
James'
thesis supposes that capitalism encourages us to define ourselves as individuals,
not members of society, and by consumption. There is something in this.
He
goes much further when he says the game doesn't work in our favour because modern
capitalism is also reducing the levels of serotonin, a chemical in our brain
which makes us happy.
In his view, capitalism puts us at risk
because we can't consume enough to fulfil our expectations and because we now
live with a constant and debilitating series of social comparisons. Even limitless
consumption fails us: it cannot make us as lovely, say, as the commercials
advertising look-good products inspire us to be. These feelings of inferiority
make our brain chemistry operate as though we were low-pecking order mammals,
which are apparently low in serotonin. We get used, in a miserable sort of way,
to this depressed state and it can indeed become chronic if we perceive our
condition of helplessness to be permanent. Along the way our reduced serotonin
levels makes us prone to sudden violence, hence road rage and all the rest of
it.
James' thesis is a little pat. Without
at all meaning to, it makes us wonder if we really are - as James supposes -
that we are actually less happy than we were in the Fifties. Golden Ages are
always supposed just to have ended, and for all that there is a modern problem,
there is no certainty at all that it is any worse, and it may be a lot better,
than whatever afflicted a previous generation which measured itself less, or
had higher thresholds of self-treatment or of denial of illness. [Pearson,
1983]
There is a further key problem with the
James thesis. It is glaringly inconsistent. He cites evidence that highly motivated
and successful people, with the expected high levels of serotonin, describe
themselves as aggressive and short-fused, just as apparently low-serotonin,
criminally violent people are. Discussing evidence on young people, he says: "Thus,
the higher the serotonin level, the more likely the student was to be
hard-charging, competitive, impatient, aggressive, distrustful and confident".
Never mind how one can be simultaneously distrustful and confident, the greater
difficulty is that high serotonin people seem to be on a knife edge of despair
as truly as low-serotonin people.
The more important argument against the
James thesis is that it supposes that capitalism creates expectations it cannot
fulfil, and that we should consider dosing ourselves with artificial sources of
serotonin to compensate. It assumes that we should treat our condition
chemically. This is to suppose that we cannot stand the risks of full-on
capitalism without drugs.
This approach supposes that we are too
morally weak, too deprived of will, to choose to ignore the blandishments of
capitalists to buy their goods and services. The difficult truth of being a modern
person is that we need to invoke the small moral courage lucky people have
always had to display. They could hardly expect to have to display no moral
courage at all. It could hardly be expected that affluence would not carry its
own risks.
Risk Society
Into
this scene of jumpiness, feistiness, bloody-mindedness, and victimhood, there have
stepped protagonists for a new problem. Risk has now become a battleground in
its own right, and is supposed to have created its own kind of fear.
It
is now supposed that we live in Risk Society, a term invented by Ulrich Beck, a
sociologist working in Germany and Britain. His thinking is conveniently found in
The Politics of Risk Society [Franklin, 1998], a collection of papers from a conference
organised by IPPR, the left-leaning think tank. These essays want to persuade
us that modern riskiness has implications for modern democracy. They include
writing by counselling specialists, by New Labour thinkers, and by academics.
So there is now a cultural, sociological and political literature on the new
dangers of risk, and it attempts to provide an intellectual framework which has
come to the support, not to say the rescue, of older HSE thinking and campaigning
from sources not normally connected with them.
In The Politics of Risk Society, which
concentrates on the BSE crisis as an exemplar of a more general malaise, Ulrich
Beck writes that
Society
has become a laboratory in which there is absolutely nobody in charge. An experiment
has been inflicted on us by the beef industries, and the most ordinary decision
- to eat or not eat beef - could be a life and death decision .... Sociologically
there is a big difference between those who take risks and those who are
victimised by risks others take... Risk Society begins where nature ends.....
this is where we switch the focus of our anxieties from what nature can do to
us to what we have done to nature.... A central paradox of risk society is that
these internal risks are generated by the processes of modernisation which try
to control them.... Risk Society begins where tradition ends, when, in all
spheres of life, we can no longer take traditional certainties for granted. The
less we can rely on traditional securities, the more risks we have to
negotiate....When we think of global warming, the hole in the ozone layer,
pollution or food scares, nature is inescapably contaminated by human activity.
As [Anthony] Giddens and I have pointed out....the more we try to colonise the
future, the more likely it is to spring surprises on us..... We move then into
the second stage of risk, which Giddens and I have called manufactured uncertainty. Here
the production of risks is the consequence of scientific and political efforts
to control or minimise them. We no longer choose to take risks, we have them
thrust upon us.
This
is a defiantly catastrophic and apocalyptic view. It is of course a matter of speculation
whether anyone has ever been in charge of the risks innovative man has been
taking since he discovered fire and before. It is unclear that the cholera
which badly-plumbed cities were prone to until a hundred years ago was a
product of man or nature Certainly, the risk was a risk of civilisation: it depended
on plumbing, but bad plumbing.
It
is indeed possible that man's activities are now great enough to impact on huge
natural systems and possibly on their capacity to support us: but the only serious
contender for this case is anthropogenic global warming, whose effects are
anything but clear, and possibly GMs whose deleterious effects are largely hypothetical
so far.
BSE, the main risk put forward by Beck
in this essay, is an odd zoonosis, to be sure, but it has killed far fewer people
than plenty of others, such as black death, milk-borne TB, botulism and dozens
of others. The quality of “old” risk is best perceived in any history of medicine,
or – at its crudest – life expectancy tables. [North, 1995]
Beck's
view is, to put it simply, seems a rather Germanic view (he disarmingly and specifically
denies that is, as we shall see), and one fairly typical of the devotion to
dissidence and despair of some of the green-minded, anti-bourgeois, men and
women born as the heirs of Nazi Germany. It is also curiously nostalgic: it
seems to hold within it a sense of grief for an older order of a trusting
society. This is interesting, since a rather sensible enjoyment of the modern
way of life was in part destroyed by the misinformation, extremism and hysteria
of some green and health campaigners. In its devotion to angst, purity and the
past, this whole strand of think is reminiscent of the Germanic visionary
version of the Romantic movement (though it is of course free of the nationalism
and the extremism which it might be argued flowed from that movement).
[Hayward, 1995]
Anthony Giddens, director of the LSE,
in his contribution, puts a somewhat milder case. He argues that we live after
the end of nature. This is a concept most elegantly bruited about by a book of
that title, by Bill McKibben, an American essayist [McKibben, 1991]. Giddens
believes "This means that there are now few if any aspects of the physical
world untouched by human intervention", a situation which has come about
mostly in the last fifty years and as a result of the intensification of
technological change. Giddens goes on to argue that we live after the end of
tradition, "....in a world where life is no longer lived as fate".
This is a view not unlike Bernstein’s about the Reformation. But Giddens gives
us a view which gets to the core of the new sense of risk as the Anxiety
Industry sees it:
"Risk
is not, as such, the same as hazard or danger. A risk society is not intrinsically
more dangerous or hazardous than pre-existing forms of social order.....
rather, it is a society increasingly preoccupied with the future (and also with
safety), which generates the idea of risk".
We
can and shall argue about this supposed new sense of riskiness. There is, though,
a very important aspect to the new concept which can’t wait and it is to do
with what the proper response to living in a Risk Society might be. Ulrich Beck
writes:
In
all my books I try to demonstrate that the return to the theoretical and political
philosophy of simple modernity, in the age of global risk, is doomed to
failure. Those orthodox theories and politics remain tied to notions of progress
and benign technological change, tied to the belief that the risks we face can
still be captured by nineteenth century, scientific models of hazard assessment
and industrial notions of hazard and safety. Simultaneously, the disintegrating
institutions of industrial modernity - nuclear families, stable labour markets,
segregated gender roles, social classes - can be shored up and buttressed
against the waves of reflexive modernisation sweeping the West.
Beck
goes on to argue that an organised irresponsibility
is at work. The state appears to him to be in a sort of denial. It accepts that
there is too much environmental degradation and half-heartedly legislates
against so much of it as it dares recognise, but can't begin seriously to
address the catastrophe which is unfolding. There is, though, a decent response
to the new situation, according to Beck, and it comes organically out of
society. Risk is socially explosive:
an awareness of the real riskiness of modern society
"sets
off a dynamic of social and cultural change which undermines state bureaucracies,
challenges the dominance of science and redraws the boundaries and battle-lines
of contemporary politics."
He
claims this is all to the good. It is "...not, as you might assume, one more
expression of the "German angst" at the millennium. Quite the opposite.
What I suggest is a new model for understanding our time, in a not unhopeful
spirit".
In
essence, Ulrich Beck argues there are liberating opportunities to be grasped here,
and they seem to be mostly to do with getting citizens to hold power elites to
account, and especially they suggest that anyone arguing for new risk-taking
should be made to apply the precautionary principle. In a nutshell the burden
of proof should be shifted: let whoever proposes risk defend its merit. It is
in this spirit that Greenpeace was so admired in the 80s and some of the 90s:
it was thought to be a liberating, charismatic rebuff to the empty and bland
promises of corporate capitalism. Greenpeace has been discredited because
people have grown tired of its own alternativist rhetoric and promise, and its
abuse of the evidence. On the Beck
analysis, Greenpeace would be surging ahead as the popular expression of a cultural
dynamic of change.
Both Beck and Giddens use the difficult
idea of Modernity, which I think they take to mean an ordinarily technocratic
view of progress, what we might call an Enlightenment view. They use something
they call "reflexive modernity" to mean what happens when real
moderns reflect sceptically on the nature of modernity. In light of these
reflections, citizens would - in this view - want to be involved in much more
dialogue about proposed new risks. According to Giddens, postmodernism supposes
that politics is at an end, but reflexive modernisation instead and more
sensibly "presumes and generates a politics. That politics cannot unfold
completely outside the parliamentary domain... A political party able to address
them cogently would be in a prime position in the political encounters that
will unfold over the coming few years."
This is surely Giddens’ cry for New Labour
to spot how to marshal and express the new energy. It would be channelling a
sort of extra-political urge to scrutinise and control amoral science and
industry, and risks in general, or – more hopefully – to humanise them. It
would be a post-political enterprise, but one which the right, the empathetic,
party could politicise.
Giddens'
discussions, less radically anti-statist than Beck's, suppose some sort of development
of a new politics of the kind he has already helped make fashionable in many of
his writings and which New Labour appears to be groping toward. It is to do
with suggesting that the profession of politics needs to be more truly representative
of what constituents really want and feel. At its simplest it has to do with "listening
to the people". Practically, it involves setting up systems for trialling
political options to see how they play with voters. It is criticised as
replacing leadership with marketing.
The proponents of Risk Society have put
the idea of expertise on trial. The risk sociologists' prosecution case is mostly
much more subtle but in its way hardly less extensive and telling than the old
green argument about the failure of the Enlightenment. This supposed that Age
of Reason – the 17th and 18th centuries - had produced a
reductionist and elitist science which was overly confident, pro-capitalist, biased
toward progress, and systematically abusive of the environment.
The new reasoning stresses, what is true, that science does
not come to a monolithic and static view of facts. It does not naturally or
properly arrive at a consensus on matters. But the new reasoning dislikes much
of the idea of evidence that we have inherited from Enlightenment science and
philosophy. If the Enlightenment saw facts as inalienable, the New Age sees them
as negotiable. [Almond, 1995] Facts have
been degraded so as to become dependent on who and where one is.
This
case militates, rather usefully at times, against the use of phrases such as "the
science". This matters because the ministerial response to, say, the BSE
crisis, is to corral scientists around the issue, to bully them into finding a
consensus view, and then to declare that this consensus is what "the
science" says.
We will be looking at this process later (see Chapter
Six), but for now it is important to note that the proponents of Risk Society
rightly point out the failings of the hunt for consensus. This hunt invites
scientists into a phoney agreement about what is definitely known about a risk,
and that can often be bent so as to emphasise the degree to which hazard has
not been proven, and to understate the degree to which issues remain not merely
not known, but seriously uncertain.
Robin
Grove-White, a thoughtful campaigner and
academic, writes in his short contribution to the Politics of Risk Society, that
science is a matter of dispute, and in particular about uncertainties.
"Contrary
to the still-dominant myth in Western culture, science does not offer an unambiguous
baseline of fact about surroundings. Characteristically, its processes are far
more socially shaped, more tentative, indeed more creative."
Proof
on many important matters will be difficult to come by. That tempts politicians
to lean toward stressing the absence of proof of harm and to be permissively reassuring
when it suits them.
Robin Grove-White wonders where we should
now look for trust: not, obviously, from politicians driven to offer reassurance
based on "the science". He argues for a "franker shared sense of the new forms
uncertainty...and genuine participation in the far-reaching social judgements (do we or do we not
feel comfortable about feeding ruminants with other diseased ruminants?) to be
made under such conditions of chronic indeterminacy. This calls for radical new
thinking about institutional reform".
This thinking seems roughly Giddens-like,
but is expressly concerned with getting beyond what the writer thinks is
spurious expertise, and getting in touch instead with the intuitive good sense,
or anyway a moral sense, in citizens.
Equally of course, Grove-White might have stressed,
it is the absence of proof of safety which allows campaigners to stress, and
often to over-stress, the need for precaution. Where safety is not proved (and
safety is never proved) the Anxiety Industry feels free to stress danger. This
business of the absence of proof actually ought to bite just as hard on
alarming as it does on nannying the public.
Anna
Coote, in another usefully moderate contribution, argues that a mature citizen shouldn't
expect either politicians or scientists to be able to offer infallible
utterances on difficult risks, but that not every voice is equally worth
listening to on technical matters. This view seems to allow that expertise does
have a value.
Coote writes,
"The
implications of the Risk Society for the conduct of public policy-making is that
we must grow up and develop an adult-to-adult relationship with politicians, as
well as with scientists and all manner of so-called 'experts'
She
advocates, instead of the present "secrecy, spin-doctoring and special pleading",
a much more consultative approach with public forums, user groups, panels and
citizen's juries. This would create a "high trust democracy" and help
us "become skilled at planning for uncertainty".
There is already far more democracy about
than these writers suppose (as we shall see in Chapter Six). Still, it makes
perfect sense to ask people what they think, and it makes sense to form panels
of citizens who undertake to try to learn and understand something of the
issues involved before they decide what they think and want to recommend. We do
not condemn murderers by plebiscite, but by use of juries required to assimilate
difficult evidence. The same sorts of process might usefully be applied to
technical risk assessments. Coote seems to allow plenty of space for "experts",
and even Robin Grove-White might allow that a scientifically-literate "expert"
might be better able to describe the uncertainties in an issue than the
opinionated and half-cut man propping up the bar or the gabby woman under the
hair-dryer.
Indeed, Giddens, Grove-White and Coote
are not, on the face of it, proposing anything very frightening. Their views
can't be accused of rabble-rousing radicalism.
Rather, they are saying and proposing little that helps us. Even Coote, whose
language is the most sensible and whose proposals the most ordinarily practical
(and tried) may not be helping very much.
None of these proposals, even the more useful ones,
hold out all that much hope of reconciling the difficulties they think we face.
Even Anna Coote's proposals for citizenly involvement will be most helpful if
science and scientists are heavily involved as informants.
Actually, the case against science is
not well-made by any of these writers. The proponents of Risk Society tend to
claim that science makes larger claims for itself than is justified. But actually,
scientists left to themselves are thoroughly disputatious, and are prone to
stress the uncertainties and nuances in what they know and think. It is
governments which have corralled and coerced them, and on the whole done so with
good intentions and very only sporadically bad social effects. It will take a
definite, but not enormous, shift in attitude by governments toward science to
rectify the problem. It will take very little change of attitude amongst the
scientists themselves.
It is highly probable that the future
will produce more consultation of citizens by government. But it is just as
likely, if we are lucky, that government (rather as Giddens hints) will develop
the means both to listen to citizens and to inform them, and not merely about
certainties but also about uncertainties.
In the meantime, it may well be that
asking more citizens what they think about difficult issues will produce more caution,
and a more precautionary approach to policy, which most proponents of Risk
Society seem to want. But it may not, and even if it does the outcome may not
be desirable. The public may be as gung-ho for, or as nervous about,
risk-taking as our existing supposedly non-consultative processes have been.
Increased caution may prove damaging both to ecological and economic values.
It may be that the sorts of mistakes
which the existing democratically-controlled and actually quite consultative
regulators have been unable to avoid would continue to arise, in spite of
earnest attempts further to democratise control.
Risk
Society allows that modern people do not face greater risks than their forebears.
They do not face an earlier or nastier death or probability of injury or
disease, and they may even face actually diminished risks, but they are still
in need of the ministrations of the Anxiety Industry.
People are accepted as being more emotional
about such risks, new and old, as they do face, but that is not the same as
being more irrational about them. They are supposed to be more aware and better
informed and this new perceptiveness is supposed to cause them pain and
distress.
The opponents of risk society
Even
if the story of capitalism and its psychological dangers is more complicated than
Oliver James suggests, it is interesting to find an analysis which supposes "We're
unhappier than we were in the 1950s - despite being richer", in the words
of his sub-title, and lays the blame on high expectations.
Another author, the sociologist Frank
Furedi, argues that there is a modern malaise, which is a curiously mirrored
image of James'. This is the "Culture of Fear". His case is strong,
and nearly fulfils the claim of his sub-title to discuss: "Risk-taking and
the morality of low expectation". In this view, the new world of
syndromes, litigation, and hyped-up fear has led dangerously to a world in
which people are no longer free to take risks. A "new etiquette" has
arisen in which one is responsible for the healthiness of one's own behaviour,
and further enjoined to cause no risk to others. But when Furedi does rather
briefly address his subtitle, it is clear how different his terms are to
James'. Furedi accepts the jamesian argument that modern are subject to "individuation
and the weakening of solidarity", but draws a very different conclusion
from the fact:
"...the
highly fragmented individual is actually held back and restrained by a society whose
main demand is that of caution and which cannot accommodate itself to the spirit
of experimentation. Thus the distinct feature of society today is not the
unprecedented flowering of the individual, but the weakening both of a sense of
collectivity and of individual aspiration."
This
view, though Furedi does not really explore its moral dimension, chimes well with
thinking developed by people thinking about stress and trauma. Angela
Patmore [Strex,1998] puts forward a case that stress is a largely manufactured
idea, and false one. In this view, it has no more meaning and reality than does
the idea of people having "complexes", the fashionable ailment of the
60s. Besides, she says, "stress" is a very sensible and necessary
thing: it is a person's valuable warning that there is danger about. It
energises one, like an animal whose sense of fear enables it to fight or flee,
according to circumstances. [Sapolsky, 1994; Webster, 1994] Of course, continuous
stress, and especially stress about which one can do nothing, is debilitating.
We can take and enjoy short bursts of fear and stress: the adrenaline flows. We
can even, many of us, enjoy sustained bursts of stress and fear, provided we
feel we have chosen them. It is hopelessness, powerlessness, not stress itself,
which gets us down. Here, perhaps, we notice similarities with these ideas and
those of James.
More
obviously, we see that stress is a response to being at risk: it is a preparation
for taking action to address danger. To be powerless in the face of risk and
threat, to be powerless to overcome danger, or to be an actor in one’s own
cause, is a greater source of suffering than stress by itself. There is good
evidence that heart disease, commonly associated with stress, is actually much
more clearly associated with subordination. The incidence of heart disease is,
for instance, closely correlated with lowliness of ranking at work. High-flyers
are not prone to heart disease nearly so much as their frustrated underlings.
Those who say stress is not an illness
but a mostly invaluable response, are contributing to a robustness of view
which will help, say, employers, when it comes to fighting off claims that this
or that person suffered illness derived from stress.
Perhaps as interestingly, it will also
help people who believe they are suffering from stress. It does not say there
is no risk of stress, or that the sense of being at risk does not indeed amount
to stress. What it says is that stress is a good thing, and if there is too
much of it, or it is too prolonged, for an individual to bear, it may not merely
be the intolerable behaviour of the employer which is at work. It may indeed be
that, but it may also be that the individual should find himself a less
demanding job, or manage his stress better. Interestingly, there is even evidence
that the individual should seek a more demanding and apparently stressful job:
he or she may need to shove harder, and get hold of some success. This is a furedian point, and the reverse of a
jamesian one. It says that society and individuals are at greater risk from
pressure to avoid stress – that is, one form of risk – than from maintaining
their nerve and a sense of adventure.
One copes with grief as one does with
stress. One doesn't condemn either. A robust line of argument is emerging about
the supposed risk of trauma people endure when they are around challenging
circumstances, and indeed the risk that trauma puts people at.
Angela
Patmore [Strex, 1998] argues that trauma is normal, and survivable, but that it
is not a condition so odd that it often needs professionals to deal with it. One
can suffer, and indeed one can suffer greatly, without incurring a disease. One
might add that it may even be morally important to endure trauma without complaint.
There is, for instance, growing anxiety about the costs of damages to police
officers who witness hideous events. Though only some of the officers who were
on duty during the Hillsborough football stadium disaster were awarded damages,
superiors must now consider very seriously how to manage disasters not merely
from the point of view of the public, but also from the point of view of what
police mean and women may endure in dealing with them. There is conflicting
evidence on how the legal system will respond to the pressure: the House of
Lords and senior judges do seem reluctant to relinquish the idea that some
professions by their nature involve unpleasantness. [Times, 1998b]
There
is also a serious suspicion that whilst the traumas of service of this sort may
not have been well handled in the past, we could now drift into a position where
officers and others feel worse than they need, partly because they do not see
that mental suffering is natural and proper to the kind of work they sometimes
have to do. A recognition of grief and suffering seem quite therapeutic: it was
reported that the outpouring of unhappiness following Princes Diana’s death
resulted in a reduction of depression. [Independent, 1997a]
Risk Society, enemy of the
Enlightenment and the modern
Risk
Society supposes that people are at particular forms of risk. Risk Society calls
in aid of its view of the world a particular view of politics and science which
is particularly challenging to "The Enlightenment".
Ulrich
Beck hauls most of these themes together with the greatest clarity. He calls for
a "responsible modernity" in which new technologies are subject to a
new "process of discussion, and a legal and institutional framework for
the democratic legitimation must be developed...so what we need is nothing less
than a second Enlightenment which opens up our minds, eyes and institutions to
the self-inflicted endangerment of industrial civilisation".
In
his essay in The Politics of Risk Society, Pat Kane, a journalist and musician,
further describes the kind of doubt risk sociologists now seem to espouse:
"As
we close this century who could deny that the moral balance sheet of scientific
achievement is too close to call either way? All the discoveries that underpin the
sophistication of the modern world - whether in biology and chemistry, or nuclear
physics and bio-engineering, or computation and communication - also serve to
subvert that very sophistication."
We
here have the idea that what we might call the "first Englightenment"
has bankrupted itself and is need of replacement. Science has been a Bad Thing,
or at least a beast whose nature is unruly and has not properly met its regulatory
match.
We
can, in fact, defend the Enlightenment, and do so especially if we see it as a constantly
evolving set of loose principles. The Enlightenment was many and contradictory
things, but we mostly now take it to be a revolution in thinking, which
celebrates the individual as a reasoning and autonomous being whose understanding
and choices should be promoted and respected insofar as possible. It was
accepted that an individual is importantly self-interested and rational.
The
individual was of course a social creature, but he was making contracts with others
in a spirit of enlightened self-interest. Humans knew things about the world,
knew scientific facts, which changed the way they could work in the world, and
which improved the world. Constitutionally and politically, humans were seen to
be living in human organisations, constitutions, which should be responsive to
their constituents but which produced mechanisms by which wise people ran
societies which were in sum rather wiser than many or even most of the
individuals who composed them. This is what we might call “nuanced democracy”:
a democracy which avoided the demotic.
For
getting on for three centuries these have been the ideas which have formed Western
society, and they have proved robust in spite of being pursued to dangerous
extremes by revolutionaries in France and elsewhere, and in spite of being - on
the contrary - mightily cursed by dissidents on what we would now call the
left.
Inherent in the Enlightenment project
has been a relaxed view of Progress. Neither man nor society has been seen as
perfectible, but both have been seen as capable of and meriting improvement.
Science, technology and reason have all seemed necessary to important parts of
this enterprise. It would be hard to describe Progress as the ideology of the
Enlightenment, since the Englightenment is importantly a non-ideological
enterprise. But certainly bigotry and superstition - which are as it were
ignorance at work - have been eschewed as backward and regrettable, whilst
rationality and open-mindedness have seemed important watchwords. Curiosity and
technological development have been seen as likely to lead us forward.
The
Enlightenment naturally had an ambivalent attitude to both the past and to Nature.
The antique values of the Classical world were, for instance, admired, and
admired in some ways rather more than Christianity. Nature was admired but also
perceived as something which needed management [Daniels, 1993].
It is hardly surprising that there has
been much modern discussion which springs from the problem of the Enlightenment's
having seemed to unleash such terrible forces, especially the technologies of
war and oppression, but also what appeared to be unbridled pollution and
occasional industrial disaster.
Raymond Tallis, in his huge and rather
unwieldy, Enemies of Hope: a Critique of Contemporary Pessimism [Tallis, 1997]
dives into the heart of this debate (rather tellingly, his book jacket boasts,
as a symbol of angst, a painting by Casper David Friedrich, who embodies the
German Romantic). He discusses much "cultural criticism" of the kind
which supposes that we are unhappy, the victims of violence and uncertainty, in
need of lessons from primitive societies, and misinformed by false science. Tallis,
in short, defends progress and the Enlightenment.
He is good on the emergence of the "diagnostician
of society" who tends to be "scornful, angry sorrowful. He may be
paid for being a journalist, but he is in truth a minor prophet, a pocket Jeremiah,
a Cassandra of the Home Counties...."
Tallis quotes J G Merquior
"That
a deep cultural crisis is endemic to historical modernity seems to have been much
more eagerly assumed than properly demonstrated, no doubt, because more often
than not, those who do the assuming - humanist intellectuals - have every interest
in being perceived as soul doctors to a sick civilisation. Yet is the medicine
that necessary or the sickness that real? Perhaps we should entertaining second
thoughts about it all?"
This
is useful stuff. It is important to defend the idea that modern, western societies
are in good heart, and it is not Panglossian to say so. The reasons for the
defence are manifold. If it is true that we are quite happy, why not get on
with enjoying ourselves? If our societies do a fair job at promoting well-being,
why excoriate those who run them? If modern science keeps us well why not
celebrate it?
Risk Society is interesting because it
is the latest of many onslaughts on the Englightenment, and on Progress, as they
have been inherited by us moderns, postmodernis, reflexive moderns and all the
rest of it. It does not add much to its discredited forebears. The language of
both the proponents and the opponents of Risk Society is comfortingly old-fashioned,
in spite of the neologisms and the jargon.
We cannot, though, dismiss the anxieties
felt by people as they assert that nuclear power or GM are "bad" technologies.
The people who make these claims are often the same who believe that there is
crisis of pollution which is the consequence of a corporate and scientific
hegemony which has subverted the state's ability to regulate properly. It is
important, though, to see that worrying about the quality of drinking water, or
believing smokestacks are unnecessarily rich in sulphur dioxide, is not the
same as worrying about global warming, nuclear power or genetically modified
organisms.
The difference in the cases is this.
Though the risks of human suffering, or even animal suffering or environmental damage,
are common to many of these issues, the nuclear, greenhouse and GM cases add
something which would survive their being proved much less dangerous than they
are now thought capable of becoming. The Enlightenment proposed an anthropocentric
vision of progress which tacitly courted all sorts of risks - including risks
to naturalness - in the name of the human adventure of progress. The essential
new feature which suits the green movement or the Anxiety Industry is that they
identify a new sort of damage, which is not necessarily to anything real or
physical, but to an aesthetic or moral sense of the proper role of the natural.
The idea that nature is dead is very
important. Humans can now be thought to be at risk when nature is damaged not merely
because their well being depends on the health of nature. They are at risk
because the idea of naturalness is important, and perhaps even important to
people's psychological health. GMOs and nuclear, in particular, offend against "nature",
in this view, because we are playing God. Similarly, global warming is so
powerful and insidious that it alters not merely weather, but climate, which is
supposed to represent, by definition, something enduring.
The
essence of this analysis is that people can rightly believe themselves to be at
risk even should nuclear power, GMOs and greenhouse gases actually prove to be safe.
The damage, in this view, has been done already, because it has been done to
our mental wellbeing.
Of
course, those of us who resist this line of anxious thinking stress that all the
works of man - including nuclear power, GMOs and greenhouse gases - are natural
because they are products of the human, that is the natural, world. Besides, they are all developments which spring
from working alongside nature’s forces. Nature isn't dead, or history. She is
merely working out, as usual.
We can do all sorts of things which are
risky, but we run no risk of being unnatural.
Of course, we do want our world to remain
recognisable and we do understand the promptings of nostalgic regret. We are
responisve to the Romantic reaction to the gung-ho Enlightenment.
But it remains possible and necessary to assess
risks properly, and to remember the costs of indulging in Romantic dissidence.
It carries its own risks, including a self-induced and almost hysterical
reaction against the modern world.
There is nothing new in this problem.
When Galileo redescribed the workings of the universe, or Columbus redescribed
the oceans, when the unknown was mapped, people's world pictures were torn up
and redrawn in rather same way that has to happen to moderns as they
contemplate the possibility of a warming world, a world with tens of thousands
of tonnes of radioactive waste to manage, or a world in which we will never
quite know whether evolution or a laboratory made this or that aspect of the
plants and animals we see before us.
Our
equanimity is at risk in these processes of re-envisioning the world, but do we
have to make the gloomiest assumptions as to our ability to survive them? Why must
we assume that re-envisioning the world is necessarily only threatening rather
than being exhilarating as well?
Chapter Three
Risk and morality: Martyrs,
military men, mountaineers and feeding the millions.
To
take a risk is to chance damaging oneself. That is why the idea of taking risks is so challenging. It is also why
it is so easy to suppose, wrongly, that the main attitude to risk will always
be to reduce it.
But this can't be anything like true.
Obviously, there are some risks, even to oneself, which it is worth taking.
Even the biggest risks often seem to be. We find people drawn to heroism (which
can be self-interested, but must risk the grandly self-destructive) and martyrdom
(which is often self-interested in the sense that it is about a passionately
held, but above all a personal, conviction, but similarly depends on
self-destructiveness).
It
is obvious that many people love at least some sorts of risk. Large numbers of sensible
people queue up to behave with what looks like an irrational disregard for
their apparent self-interest. The papers are full of the deaths and injuries
incurred by the dangerous sports, and perhaps especially those in which man
pits himself against nature, or courts risk with more than usual nonchalance.
[Standard, 1999a; Telegraph, 1998b; Telegraph, 1998c Telegraph, 1999]
John
Adams, an important writer on risk, discusses the idea of a “risk thermostat” which
catches the fact that people seem to live their lives so that each of us experiences
the amount of anxiety attractive to us. Regulation of safety risks, says Adams
wisely, the displacement of risk-taking. [Adams, 1999; Adams 1997; Adams 1998]
What is over and again stressed by this
sort of risk-taker is that one is never more alive than when at extreme risk of
death. This may be no more than a matter of a neurological fact about the human
brain and nervous system: that the adrenaline and beta-endorphin kick-in a kind
of ecstasy where there is terror, followed by an ecstasy of relief. People
court risk because they enjoy raiding nature's own drug cabinet.
And
there is a cerebral version of this pleasure. The human mind relishes existential
experiences: we are so aware of our impending deaths that in some subliminal or
even fairly self-alert way, we enjoy flirting with the possibility of our own
extinction. Isn’t that what we mean when we say that a risk-taker "cheats”
death? Perhaps people are drawn to the rehearsal of death.
Certainly, we all know that people are
richly diverse and peculiar about risks. Here is an apparently timid and shy
woman who will only undertake affairs with unsuitable - that is, risky - men.
Here is the mild-mannered classical scholar and philosopher (I mean, Roger Scruton)
who is a passionate and courageous follower of hounds. [Scruton, 1998] Here is
the 7th earl (I am thinking of Michael, Lord Onslow) who writes that his father
had a "good war" which left him unsatisfied with the rest of a long
peacetime life: the war was his high point. Here is the happy and successful
student with an entertaining present and the promise of a challenging and
rewarding future who explores drug-taking to the point where simple curiosity
seems to have been replaced with real recklessness.
All these have an element of the heroic,
simply because there is something like a divine discontent driving such risk-taking.
There is an odd ambivalence in our attitude
to risk. Those of us who are condemned by our natures to a cautious way of life
often feel that it is above all because of timidity that we achieved too
little. This feeling leads us to admire anyone who behaves courageously. But it
is important to see that this need not be courage in a virtuous cause. We
admire the gambler, the adulterer, the fast-living rock star, even the
criminal, because they are all living in the fast lane. They have put
themselves on the line, even though it was in the pursuit of the morally
dubious or plainly bad. It may be a sneaking admiration, but that doesn't
dilute its stinging force.
There may be a halfway decent explanation
for our envy. I mean, that there may be a moral underpinning to our envy of
those who are risk-takers, sometimes even when their courage is deployed in a
bad cause. It is because we respect risk for its own sake.
Most
people who achieve anything, who advance the human cause, will have displayed at
least the "courage of their convictions" even if it be only in argument.
We accept that the downright bad can often display courage, and we accord them
the accolade of limited virtue. The virtuousness of courage is redemptive: it
can wash some of the moral stain from the guilty.
Admiral Lord, Nelson, the hero and also
a victim of Trafalgar, for instance, understood that he sought personal and
national glory in battle. This went well beyond the mechanical need for victory
and the defeat of enemies who threatened his country.
Often we find virtuous or glorious risk-taking
where we do not at first expect to find them. The most milkily-virtuous female
saint, say a Therese of Lisieux, is plainly far more a heroic figure than is
implied by the more sentimental and cloying imagery which surrounds her life
and death. Just because she herself made such efforts to portray herself as a
small saint, a saint of small virtues, a saint on a domestic, female scale, we
need not at all follow her in this deception. Therese courted suffering because
she wanted to display commitment to
Christ: she wanted to be as much at risk as He decided she should be. Therese
put herself on the line no less than a Formula One driver or Nelson.
As Roger Scruton implies when he criticises drug-taking
but not smoking, the only risk-taking we despise is that which imposes its cost
externally. [Adams, 1999] The young son of a rich family who kills someone in
his badly-driven Porsche sports car is an obvious figure for opprobrium. His
father is yet more so: even if the boy had been a paragon, the present seems
absurdly unwise. The reported £5,000 a year insurance his father paid was
capable only of making the risk-taking legal, not admirable.
Risk and wider morality
People
on the right of politics are inclined to assume that the rich can mostly benefit
the poor of the third world by helping them join the high-risk game of trading
with rich countries. The supposedly low risk strategy advocated by the greens
and the left is that the poor should devote themselves as families and states
to self-sufficiency. But the right claims that this puts them at vastly more
risk than would modernisation and participation in the global economy. The right assumes that the rich of the world can
most benefit the poor by developing the freest sorts of markets and free market
economies with which they can trade. High taxation, even taxation designed to
produce a redistribution for the poor to cushion them from the risks of
poverty, is regarded as risky both to the poor who become dependent, and to the
whole wealth creation process in which they need to be a part. The right is
sceptical of redistributive taxation, and often of charity as well.
This strategy is an avowedly high-risk
strategy: it depends on allowing that risk-taking on a large scale by as many
unfettered individuals as possible is the surest way to wealth creation, and
even to wealth distribution. It supposes, moreover, that planned benevolence
has far greater hazards, and especially the hazard of low growth, cronyism and
worse experienced by planned economies.
A society which tries to plan things
as little as possible is likely to believe that natural resources should also be
managed with as little planning as possible. It will be inclined to believe that
restrictions of scientific and technological developments ought also to be as
slight as possible. There will, in other words, be a free market in ideas and
natural resources, even including the right to pollute within the limits imposed
by "bubbles" of regulatory limits, and that property and intellectual
rights will be employed to put a money value on their exploitation.
Naturally, limits will have to be drawn
somewhere, and governments have to both be the final arbiter of where those
limits fall, and the ring-holders of the legal systems which maintain and limit
people's freedom to trade legally, or to cause pollution and resource depletion.
What is interesting here is to see the
way that a moral case can be made as easily for the high-risk strategy as it
can be for the more cautious green one. Both Wilfred Beckerman [Beckerman, 199
?] and the late Julian Simon [Simon & Kahn, 1984] have argued forcefully that
over-caution, especially regulatory caution, is morally harmful.
Beckerman
argues that we have little responsibility toward future generations. This not because
they are nothing to do with us, but because
we can know so little of how any present acts of ours will effect them. What we
can do, he argues, is make sure that we attend to the "mental" capital
we bequeath them: in other words, we need to know as much as , possible, have
developed as many technologies as possible.
That
way, whatever physical condition they find themselves in, they will be able to handle
them as well as possible. They will also probably be richer, with all the
benefits that entails, if we in our time develop our economies the better to
ensure they are vibrant in the future. The implication here is that whilst we
cannot judge how damaging our present actions may prove, we have a shrewd idea
that the knowledge base, and the capital resources, of rich societies will hold
future generations in better stead than relatively less developed economies..
Julian Simon argued a little differently.
For him, inventiveness had always ensured that material constraints had been
less binding on succeeding generations as time and progress went on. This
argument depended on Simon's faith that human inventiveness was simply a
greater force than was normally supposed. He went so far as to suppose that the
pressure of human numbers was a spur to inventiveness, and that it was so much
a spur that each birth should be considered more likely to be a benefit than a
deficit. His was the most purely anti-Malthusian voice.
These are grand ideas, but they also
seem more morally sound than might be supposed. Human numbers have always been pressed
right to the limit of the ability of contemporary technology to feed them. We
live now amongst the first generations voluntarily to restrict their family
size, and within a century should be witnessing a substantial decline in world
populations, if that is what people alive then want. But for the time being,
human numbers will probably double, probably by half way through the next
century, and their demands for fuel, fuel and fun will very much more than double.
The ten billion people we can assume will soon, with luck, populate the earth
will have big needs and even bigger wants.
There is plenty of evidence to support
the view that the risks we have taken so far have been justified by their outcome.
It is also clear that we cannot yet know which risks we are now taking will be
most regretted by our successors.
It
is clear by now that we can never see the biggest part of risks. A gamble is necessarily
uncertain, but most gamblers know what they are stand to lose and what they
stand to win. Our productive gambles, the gambles we make to progress, are much
more open ended. But we dove a fair idea of what we hope to gain: the
continuance and improvement of our lifestyle, and its spread to the unborn
billions.
Chapter Four
Risk, profit and morality
Firms
exist to make profits. Put this another way: they exist to put capital to work.
Put it yet another way, which the firms themselves sometimes seem anxious not to
dwell on: they exist to put capital at risk. The awful truth is, to a remarkable
degree, they exist to take gambles with other people's money.
Along
the way, they take lots of other gambles, and puts lots of other things at risk
too, and perform signal service for society. But the sharpness of their dilemma
is seen in the way they must take chances with other people’s money and yet
seem eminently sensible.
This isn’t quite the obvious matter it
seems just because it trips off the tongue easily enough. Practically the first
lesson one learns in economics says that profit is a reward for risk. But the
relationship isn’t proportional, or even linear.
If
life were simple, the greater the risk you took, the greater the profit you’d earn. Now, this is obviously nonsense. Big
risk takers lose as well as make money. And the risk-averse can get very rich.
A nineteenth century aristocratic estate owner, or twentieth century oil
sheikh, may not have taken any risks at all in getting rich from the energy
under his ground.
And yet the theme remains largely on-song.
Capitalism is brilliant at bringing forth risk-takers and opportunists. Julian
Simon, the great development economist, used to say capitalism is best seen as
the system by which hundreds of people queue up to take risks with their time,
energy, talent and money and by which a very few strike it rich and most fail.
A further luxury is that none of us need feel gratitude or grief about either
class.
Risk and the cost of profit...
The
idea that profit and risk are intertwined is sound enough. Most people do have to
speculate (ie, gamble, or take a risk) in order to accumulate. Indeed, firms are
most clearly explained when we see them as casting around for opportunity for
profit, and then working out how to understand and control - that is, to manage
- the risks involved.
Curiously, perhaps, entrepreneurs would
like to manage risks to destruction. Peter Drucker argues that entrepreneurs
are not in fact natural risk-takers. In Innovation and Entrepreneurship [Drucker,
1985] he writes:
"The
popular picture of innovators -half pop-psycholoy, half Hollywood - makes them look
like a cross between Superman and the Knights of the Round Table. Alas, most of
them in real life are unromantic figures, and much more likely to spend hours
on a cash-flow projection than to dash off looking for 'risks'."
Drucker
stresses that it is the business of entrepreneurs to manage the risks out of their
enterprises. They "define and confine" risks.
It's a difficult business to formularise.
There was a certain dark comedy in the downfall and subsequent bail-out of
Long-Term Capital Management, two of whose founders, Robert Merton and Myron
Scholes, in 1997 shared the Nobel Prize for economics for their contributions
to their understanding of financial risk, entitled Optimising commercial risk . And then of course there was important
discussion as to “the moral hazard” – let alone the financial risk – in
sheltering individuals and institutions when their gambles fail. [Sunday Times,
1998a]
But the ideas are not hard to describe. The job is elegantly
done in a new manual for Chief Financial Officers (CFOs), written by the (then) Price Waterhouse Financial and Cost
Management Team [Price Waterhouse, 1997]. "CFO: Architect of the Corporation’s
Future" has a useful chapter, Integrating Financial and Business Risk Management. It makes clear the way
the best way to think of business is to stress that a firm's opportunity for
profit is constantly at threat. Business is discussed from the point of view of
a finance director, who need not be interested in making or doing anything very
concrete, or in employing anyone.
He is the person in a business who is
most like a banker or a gambler. He must define risks, sure enough, and even confine
them. But he cannot tame, or still less, eliminate, risks. He must aspire to
optimise them.
The CFO is likely to remind the firm's
managers that they are proposing lines of activity which expose the firm to
unwarranted risk, or whose caution allows too little opportunity for profit. He
especially will remind them that the firm should only volunteer for those risks
it is in business to manage. Managing chosen risks is a good description of the
negative side of what a business tries to do. It is fair definition of what a
firm's "core" business really is, and firms necessarily often fail by
it.
The stock market turns out to be surprisingly
forgiving of such failures, at least sometimes. Research at Templeton College,
Oxford's management and business graduate school [Knight & Pretty, 1998],
suggests that firms which suffer a major catastrophe can gain shareholders'
esteem and increase the value of their shares if they demonstrate robust
management skills in the aftermath. This is a little like the habit of bankers
of allowing regular debtors more overdraft that infrequent borrowers. Bankers
are more frightened of people whose behaviour under the pressure of debt is an
unknown quantity.
This is all a little like saying that we only learn
by our mistakes, and only those who demonstrate their capacity to survive disaster
are likely to be good at averting catastrophe. It is the thinking which
underlies Peter Mandelson's call for a review of British attitudes and behaviour
toward bankrupts: he pointed out in a speech in New York in October 1998 that
bankrupts should not be stigmatised: their experience is toughening and
valuable. Reduced to a sound-bite Mr Mandelson's prescription sounds impertinent:
he found himself calling for entrepreneurs to face the threat of a recession by
"taking more risks, not fewer".
The CFO
is the custodian of the firm's capitalism because he is the person who rents
the money the firm works with. The firm, as the CFO especially knows, is not
only seeking profit, but presenting itself as a source of profit to others. Its
board keeps the firm in operation as a means of making money for themselves, as
representatives of other investors.
A
firm is always trying to present itself as an opportunity for profit which is proportionate
to the rent it will be charged for its capital. The costs it must pay for
capital rise the more insecure the firm and its proposed ventures seem.
In technical terms, the riskiness to
investors and lenders to the firm will affect what is called the Weighted Average
Cost of Capital. [Sunday Times, 1998b] Expensive money is only worth borrowing
or risky ventures worth backing if the promised profit can bear the loaded
payback involved.
Then
there is the Risk Adjusted Return on Capital, a concept which assesses the reality
of apparently juicy profits from a risk-prone company or division. The company
or division will need in effect to pay a premium, to reward the risk-takers who
invest in it.
A
firm’s requirement to optimise these risks and costs is ceaseless. There will always
be other firms who might combine risk and security even better.
The morality of financial
risk
Economic
risk-taking is inevitable, indeed it is compulsory in a free market society. It
becomes important to see what case can be made for its being virtuous as well.
Some of this is to do with the personal qualities
risk-taking requires. Financial risk-taking is so obviously a matter of greed
that it is hard to see that it is also a species of heroism. It is a selfish
sort of heroism, and is thus more like the lust for glory of a military hero
than the apparent self-abnegation of a religious or moral martyr. But necessary
and brave and in those senses virtuous it certainly is.
A stronger justification comes from the social
virtue of risk-taking. The need for risk-taking flows from our dealings with the
future, and this is as true of our problems with money as it is of anything else.
If there were no future, no-one would take risks with their money. They would
spend it now. Believing that they have a future, and that the future is necessarily
uncertain, requires that people take a view about the degree of adventurousness
with which they manage the future of their money.
It is clearly immoral to be carelessly
dependent on others whilst one is able-bodied and in sound mind. Equally, it is
immoral not to have provision for the future. The state can undertake much of
this provision for its citizens, but it can raise no revenue without taxing
successful risk-taking. And private pensions obviously depend on it.
It is here that we can begin to make
a moral case about the business of risk-taking, and of firms as risk-takers. As
people virtuously seek to safeguard the value of their money, and if possible to
make it grow, they have to set it to work in more or less risky ways. Beyond starting
a firm of their own, or gambling at the track or table, they have to trust
someone else’s judgement.
Starting a firm on one’s own is obviously
risky because one is either borrowing or using one’s own capital: either way
money is put on the line. A new firm is best seen as certain excitement for
one's present, not a certain insurance for one's future.
Most of us depend for our futures entirely
on the successful risk-taking of those to whom we entrust our resources, and
that will in turn depend on the successful risk-taking of entrepreneurs and
managers in firms in whom they in turn invest.
It is one of the oddest features of modern
life that so many people affect to dislike or despise this process, firstly as
though it were nasty and secondly as though it had nothing to do with them
except as making them victims, either systematically or occasionally.
An entirely reasonable way of looking
at capitalism is to stress that it delivers goods and services, including a
secure future, at the lowest possible prices to all-comers. It does so,
moreover, by allowing them to take profit in the future roughly in proportion
to the amount of risk they are prepared to bear. The interesting thing here is
how well the system caters to the risk-averse. One cannot make huge profits as
a cowardly investor, but considering how much risk someone, somewhere has to
take in order to make any return for cowardly investors, it is amazing that the
system rewards them at all.
Crucial questions arise as to the proper
treatment of those who cannot undertake risk, or refuse to, or fail at it. The
consensus which bolstered the old welfare state is now threadbare. People's
expectations are too high for them to trust the state to fulfil them; there is
an increased belief that sooner or later, levels of taxation ought to be
reduced; and there is a greater acceptance that self-reliance should take a greater
place in society's moral framework and political economy. All this amounts to a
greater acceptance that it is not the state's job to rob people's lives of all
risk, and that its attempts to do so introduce new risks.
Fitting in the HSE risk
We
need to see what tacit contract can be reached between "the people" and
industrial capitalism in the matter of HSE risk. There are some real differences
between HSE and financial risks. The main one is that nearly all HSE risks are
imposed on people without their being invited to optimise their personal
risk-taking. Whether as workers, consumers, or neighbours industrial capitalism puts us at HSE risk without asking
us individually whether we accept the deal involved. Air, water and soil are
not things whose quality we can much choose, but the well-being of all of them
is affected by industrial activity. We can move away from a polluting chemical
plant if we like, but we are likely to end up somewhere else where some other
environmental risk will confront us. We can leave the city with its air
pollution and move to the countryside with its pesticide pollution. To this
extent, HSE risks tend to be truly involuntary.
Nor can we find ready redress for the
damage risk-taking by others exposes us to. Even to say that we can sue some
part or other of capitalism for the risks it poses us is spurious. Much of the
pollution caused by industry damages millions of us, if any. Many of the causes
are multifarious. So legal redress would often be a matter of impossibly complex
class actions against impossibly diffuse and diverse defendants.
These are amongst the reasons why the
state has an even greater role in regulating the environment than it has in regulating
the economy. But in the degree to which the state controls almost every
dimension of HSE risk, we need to accept that these risks have been the subject
of democratic process. So while it is true to say that HSE risks are largely
involuntary, it is also true to say that they have been taken into the democratic
maw. Citizens control the state, and through the state they are responsible for
even those risks which they perceive to be involuntary.
There are, moreover, greater similarities
between our citizenly contract with financial risk-takers and with HSE
risk-takers than might be supposed. We need to see that HSE risk is really quite
small, and that it is as closely regulated as is consistent with the ability of
industrial capitalism to provide the things we demand of it. Indeed, we need to
find as many voluntary ways of regulating HSE risk as possible. Only that
exercise and tendency will develop means of delivering HSE risk management which
work well with the market, and inhibit economic activity as little as is consistent
with controlling risk. Government needs always to be seeking the "silver
bullet" of any regulation: the regulation which does its work with as
little collateral damage as possible.
We need to see that with HSE risk no less than
financial risks, the idea of optimising risks is far more instructive and powerful
than the idea of merely reducing them. We can properly consider how we might
drive HSE risks into the ground, but we need to remember that many attempts to
realise the policy would probably pose other risks. Goods and service would
become more expensive; other risks would replace the ones we currently face;
private entrepreneurship and public and private innovation would be stifled. We
will discuss some of these issues elsewhere. But for the time being, we can
merely stress that it would be as churlish and cowardly to indulge our sense of
victimhood in respect of HSE risks as it is to indulge it in respect of
financial risk. The Spanish proverb applies: "'Take what you want",
says God. ”Take what you want, and pay for it'". We are beneficiaries of
industrial capitalism, and should take in decent part the HSE risks it imposes,
just as much as we are beneficiaries of financial risk-taking and have to
understand that we cannot be entirely sheltered from its hazards.
Chapter Five
The Real lessons from Nature
The
greens hate risk, but nature thrives on it. Fundamentalist greens have made nature's
workings into a morality tale: they have had to misread what we know of nature
to make their case that we could make or economies somehow more “natural”.
The fundamental green tenets depend on
suggesting that natural habitats are fragile and stable. In this view of things,
nature is vulnerable, and thus a natural victim. It is at great risk from that
great risk-taker, man.
The greens suggest that nature is full of communities.
They are strongly inclined to argue that our economies and societies should
achieve the same stability, and should be worried about the culture of
unbridled individualism and competitiveness the greens suppose to exist. Growth
in nature cannot continue for ever, they say, and neither can it in economies.
The greens believe we should look at nature as
the very image of the reliable and unchanging, a matter of balance whose composure
is marvellous, provided it is not knocked about, as can easily happen. Luckily,
says the green view, there is a vast amount of co-operation in nature, and
there is even an uncomprehending and unconscious co-operation in the way niches
among species and niche-occupying by species evolve to produce a marvellous
whole, which may indeed be thought of as something like an organism, or a
super-organism. It isn't clear that James Lovelock, who coined the idea of the
earth as Gaia, really believes that "she" is an organism. He
certainly describes Gaia as a system "that is sufficiently like a living
organism to be subject to illness or injury". We find Lovelock describing
man as being like an illness. He calls us such in a chapter, "The People
Plague" in his luminous “Gaia: The practical science of planetary
medicine”. [Lovelock, 1991] "Humans on the earth behave in some ways like
a pathogenic micro organism, or like the cells of a tumour or neoplasm".
James Lovelock is not a Luddite, and not a fundamentalist either, and his
writing is far too useful for it much to matter that his Gaia has become the
watchword of people who seem to take the idea well beyond reasonableness, and
certainly well beyond the allegorical use in which it is most valuable.
[Lovelock, 1979]
The merit of this super-organism, say
greens, is that its capacity for survival may be much greater than that of any
of its parts. Man may risk knock nature about in her parts, but will be paid-back
when nature is too altered to provide the circumstances for human life, and
instead "destroys" man and then heads off into a new strand of
development without him.
The mainstream green view has value:
it is a sort of morality lesson, a parable, which may be useful to us. But the difficulty
is that one might as well reverse all the propositions in it.
The writings of a rather few ecologists
and science journalists capture these emerging ideas. Some of it is piecemeal
stuff, as when rainforest ecologists note the capacity of the forest to thrive
when partly logged, or of many altered grasslands to remain quite rich in
diversity. More systematically, Daniel B Botkin, an ecologist at the University
of California, Santa Barbara, described a nature in which change and chance -
in short, risk - were vital in his Discordant Harmonies, A New Ecology for the
Twenty-First Century. [Botkin, 1990] He writes about a view of ecology which
has been held off and on for as long as people have written about nature: that
is to say, that at the different levels at which one can look at nature - a
population, a community, a much larger system - the whole must be capable of sustaining
a good deal of change amongst its parts if it is to thrive for long. He notes
that this view is essentially optimistic for man and nature: our understanding
may blossom to the point where we can help nature accommodate to our wants and
needs. Botkin notes that his view is not new, and quotes Charles Elton, a
father of the discipline:
“The
balance of nature does not exist, and perhaps has never existed. The numbers of
wild animals are constantly varying to a greater or lesser extent, and the variations
are usually irregular in period and always irregular in amplitude. Each
variation in the numbers of one species
causes direct and indirect repercussions on the numbers of others, and since
many of the latter are themselves independently varying in numbers, the resultant
confusion is remarkable.”
Nature
can be thought of, not as fragile, but robust; it can be seen not as primarily stable,
but full of the most striking dynamism; and its communities can be seen as
congregations of opportunism by which animals and other organisms within species
evolve harmonised activities the better to exploit other species and to harness
the opportunism of their individuals. [Budiansky, 1995]
Ecology,
the science of nature, is the arena of profound arguments. These are now
conducted with models and computers as much as amongst the details and entrails
of the natural world. There is much debate about stability, complexity,
dynamism and diversity as scientists attempt to discover the kind of
terminology and models which capture the way nature works.
Take, for example, a paper in Nature [Polis, 1998]. Its headline
is: Stability is woven by complex webs. In it, Gary A Polis, an environmental scientist,
discusses a paper on ecological complexity in the same issue [McCann, 1998]. He
describes a famous view by an important British ecologist, Sir Robert May, now
the Government’s Chief Scientific Advisor, that complex ecological systems are
quite unstable, and simple ones are more lasting and capable of withstanding
perturbations [May, 1973]. After twenty years, this deeply counter-intuitive
idea is now being challenged and new literature, says Polis, "indicates
that complexity provides an interwoven matrix which holds the rich tapestry of
a community together". This newer view is now being reinforced by
mathematical models which have modelled how predators thrive best when they
have various sorts of prey in various sorts of locations, and so on. One of the
important aspects of these models is that "they do not assume that this
system is in equilibrium (it is clear that that processes and species abundance
in most ecological systems are just as likely to be in flux as to remain
constant".
So, the work of many intelligent ecologists
emphasises the qualities of flux, complexity, and dynamism which are to be
found in ecological systems,. and which may indeed be important to the long
term relative stability of the wider scene.
But then Polis seems to disappear into
a "green" language which doesn't on the face of it belong to his thesis:
"The
understanding that complexity is vital to the integrity and stability of natural
systems allows ecologists to argue, more coherently, why we must preserve the
diverse elements and species that coexist in a healthy, sustainable and
well-functioning ecological community. Indeed, as we enter what E O Wilson
calls 'the century of environment', one crucial function is to provide an
unbiased, scientific basis on which political and social decisions can be made
about how to treat our natural environment".
There
are what look like little sensible steps in this argument. Actually, they are giant
illogical leaps. It is true that complexity seems to be part of stability and
stability is desirable. It seems, on Polis' own argument, that complexity is a
feature of multifarious interlocking opportunisms. The merit of this view is
that it lets us see how a habitat may become less diverse, but yet remain stable,
because within the remaining diversity, which may well be sufficient, the
workings of opportunism and complexity may well lead to a rearrangement of species
which adds up to viability. In other words, a proper view of complexity,
dynamism and stability may let one off a slavish observance of the view that
all diversity is equally good, and that none maybe diminished.
It is fascinating to note that Robert May's own recent work
makes the strongest possible case for a theoretical understanding that species
can be diminished in number without necessarily threatening the fundamental
genetic variety and viability which underlies them. [Nee, 1997; Independent,
1997b] Yet he supposes that "we are standing on the breaking tip of the
sixth great wave of extinction in the history of life on Earth", and that
it matters, without he making a case why this is so. He points that the
International Union for the Conservation of nature suggests that 24 per cent of
today's 4,500 mammal species, 12 percent of the 9,500 birds, and 6 percent of
100,0000 trees and 6 percent of 250,000 flowering plants are critically
endangered, threatened or vulnerable.
But the number of species and the past
and recent rate of extinctions are all the subject of a good deal of debate. We
have certainly lost a good deal of wild habitat to cultivation, and we will lose
more. "All the indications are that these rates will speed up", says
Robert May. But suppose that we have lost most of the fragile and demanding
species already and that more of the remainder will prove robust: wouldn't that
change the picture?
It is hard to resist the view that most
ecological discussion seeks to preserve intact the view that man's activities
are great, are growing and should be diminished, in intrusiveness. Man is
thought to be taking unacceptable risks with nature.
A middle ground view - in which both
the dynamism and the riskiness of unalloyed opportunism are recognised - allows
us to note our immense power to assert ourselves, but also to incorporate a reflexive
desire to minimise our impact. We want to limit our impact because we sense the
aesthetic or even the practical merit of leaving nature as strongly intact as
possible. We sense that nature, however robust and capable of withstanding
impact it is, also has laws and limits. Our discussion is about coming to a
proper understanding about those laws and limits.
The green argument would have us assume
that the laws are strict and unforgiving, and the limits narrow and close. We
would fear large reactions to small incursions. The alternative "opportunist"
view would more stress that nature is flexible and that it adjusts and adapts
to apparently major incursions.
Either way, it is helpful to see that
risky opportunism of one sort or another lies behind the niche-seeking, the
self-interest, the getting of a living, which drives nature so profoundly. Opportunism
always entails actions which might go wrong. Opportunities for one organism
almost always arise out of, or lead to, the misfortune of another. Ultimately,
there can be many win-win situations: but that is not the immediate effect as
organisms jostle for advantage.
An opportunity is a challenge, a gamble.
This applies far more truly to any conscious
and sentient animal, whose every action is made against a more or less
sophisticated anticipation of pain or pleasure, and the need to draw up a calculus
which optimises them. Oddly enough, and it helps us understand the meaning of
risk, we wouldn't say of an animal, except loosely, that it is "taking a
risk". There is something in risk which requires a degree of
decision-making and of conscious assessment, the calculation - however informal
- of odds. All sorts of activities can be seen by us to be risky, but which
don't really involve anything like risk-taking. The idea of a plant taking a
risk involves the use of the pathetic fallacy to high degree. It isn't even
clear that we would think an animal can take a risk.
Of course, the most docile herd of gazelle
is riven with risk. It is composed of individuals whose life is a tension between
holding one's head up to stay alert to predators, and putting one's head down
to graze to stay well enough to be alert. Goodness knows what terrors live in
the heart of a gazelle, which knows that alongside vigilance and nourishment it
is only constant anxiety which keeps the system sufficiently fired-up for
flight. Whatever a gazelle does must strike it as fearful.
But
it isn't in any precise way likely to feel that it is at risk, in the sense of having
a sense of the odds that this or that bite of grass is unwise.
People
of course operate in a more sophisticated environment altogether. But our environment
is not so sophisticated that we are not the subject to many of the impulses of
animals. Greed, hunger, lust, ambition drive us as truly as they drive animals.
Fear - a sense of being at risk - inhibits us as much, too. So does the
exhilarated expectation of risk-taking. Our social and individual choices are
hugely more complex and sophisticated than any animal's, both as to the
opportunities and the risks they present.
These strategies remain gambles: they
are still about seeking opportunity and optimising risk. But it is man who triumphantly
understands himself to be, in a calculated, deliberate and conscious way,
making decisions about trade-offs between expected benefit to be reached out
for, and potential downsides from which to flinch. Eschewing the primitive
green view does not liberate man to put at huge discount the risks his actions
may cause the planet, and through its natural processes, his own well-being.
The alternative, opportunist, view does
however liberate man from some myths and does allow him to seek afresh where
the trade-offs between risks and benefits may lie. And when he comes to the
conclusion that such and such a course of action is risky and may damage this
or that natural system, he can say that all of nature is full of risks.
The greens and risk
It
is useful to spot how the green view is romantic about ecological problems in the
same way as socialism is about economic ones. The alternative, anti-green, view
of nature sees nature as quite like the free market.
The
upshot of the vigorous and multiple opportunism in ecological nature is very like
Adam Smith's hidden hand in economics: we see the vigour of the whole arising out
of the limited self-interest of the many. In both cases, limiting self-interested
can only proceed if it does not overly damage the dynamism of self-interested
opportunism. Many individuals appear to lose by the dynamism of the process,
and society - like nature - is seen as an arena for risk, but most individuals
are seen clearly to gain, and besides it works better than anything else we can
organise. Indeed, multiple opportunism is seen as the strategy which most
reduces risk, by accommodating the need for risk-taking.
The
green view invites people to submit themselves to discovering as modest, as risk-free,
a niche as possible within a balance they fear to disturb. This is best done,
they believe, socially, and by rule: the sensible, unambitious mass must
discipline the risk-taking few. The few, of course, are rich investors and their
lackeys, industrialists.
The
alternative, right-wing, view of what ecological life is like allows that mankind,
and especially individuals, can pitch in and, using sharp elbows if need be,
seek whatever role they want and can sustain. Mankind can, in other words,
behave like any other species, with the difference that man's intelligence
makes his niche-seeking self-conscious, deliberate, and innovative. While it is
more powerful than any other has been, it is also importantly limited by moral
and political considerations. Humans are the first species to care about the
fate of other species, and the disadvantaged of their own, and to legislate and
plot for their well-being.
Our risk-taking is circumscribed. The
question now is: do we circumscribe it well?
Chapter Six
Trust and the political management
of risk - and a proposal
It
has sometimes seemed that the national emblem of the British should be a banana
skin. The past ten years or so have seen a weary litany of accidents, scares and
disasters on these shores. By the end of the 80s, the late Peter Jenkins, a political
commentator, was moved to say that our islands appeared to face a Third World
level of hazard. He was wrong, but hit a tender nerve.
He was after all writing when we had
had the King's Cross tube disaster (1987), the Clapham Junction train crash (1988),
football stadium horrors (Bradford in 1984; Hillsborough in 1989), the Piper
Alpha oil rig explosion (1988), the Herald of Free Enterprise capsize (1987)
and - of course - the salmonella and listeria food scares (1988). E Coli was a
newspaper stalwart throughout the period. In 1988, BSE was just emerging and has
never been out of our minds since. Chernobyl's radioactivity (1986), never
significant in the UK, had nonetheless proved enduring beyond ministerial expectation
and prediction, as it still does. We had had Camelford's water pollution
(1988), and already Sellafield's causing, or not causing, masses of childhood
leukaemia was a chestnut. The Braer had yet to sink (with minimal damage, in
1993), the Sea Empress yet to flounder (with hardly more damage, in 1996). The
Flesh Eating Bug was still in the realms of science fiction.
All in all, the British have repeatedly
been told they are a sloppy, accident-prone people who are badly governed by
careless politicians who can't tell their vested interests from their public
duty and are advised by dim or insensitive scientists who are co-opted by
ministers and industry.
There is some double think here. The public only
pretends to want to be told everything, and to be able - to have - to make up
its own mind. Public consultation exercises are often flops. For good reasons
and bad, in a large range of issues, the public cannot and does not want to
assess and manage the risks it faces. As individuals we simply do not have time
or skills to work out the risks of this or that bit of medical treatment, of
this or that chemical pollutant, of this or that food additive, this or that
method of signalling on the railway. Instead, we expect that the various
ministries will undertake to understand the science of these issues, assess the
uncertainties, and come up with a tolerable series of regulations.
The British are well served in these
matters. Our governments do their rather good thinking on them to an extraordinary
degree in public. And yet we do come back to one mistake again and again. It is
not the mistake of under-regulation, and it is not even very often the mistake
of excessive regulation, except when the EU binds us to Continental attitudes.
The normal mistake is that politicians
try to indulge the public with what politicians think they want or need. The
public is believed to want reassurance, and ministers indulge them. It was
drink the milk (after Chernobyl), and eat the hamburger (after BSE), and (at
least for a short time ) drink the water (after Camelford).
It may be, but it certainly isn't self-evident,
that governments reassure the public the better to keep business sweet, and the
flow of goods and services unchecked. If that is in some degree the strategy it
is a self-defeating one.
The comforting advice added very little
new risk, it's true, but each example increased rather than diminished risk. Indeed,
the most dangerous part of it all was more a matter of culture than health,
safety or environment. The word "safe" should be ring-fenced and put
off-limits to all ministers. Politicians should be put in unlit rooms and made
to listen to a tape loop repeating the mantra: "Nothing Is Safe".
The most important thing wrong with the
idea of ministers saying something is safe is that nothing ever is. So they are
forced to speak untruthfully when they deny this elementary truth. Almost every
example of reassurance today will add up to a reason to distrust politicians
later when the reassurance proves false.
There are dangers even in the former
Health Secretary, Stephen Dorrell's claim for a sort of "It's Safe, Mk ll"
statement, made in the midst of the BSE outrage in 1996. In his view beef was
safe "by any normal use of the word". This line appeals to those of
us who know that whilst nothing can be strictly, absolutely safe, all day long
we use the word in a fairly relaxed but workmanlike way as meaning something
like: "safe for all normal purposes", or "safe enough in a
naughty world". Thus cars are clearly "safe", though they have a
high potential for killing us. We feel "safe" in our houses, though
they are the most likely scene of an accident happening to us. It will be nice
when, one day, we can come back to this fairly cheerful and informal use of the
word. But for now, we need to eschew it. It remains more important to stress
that things aren't always safe, and that some manmade factors are adding to "unsafeness",
than to risk false reassurance.
The final reason why ministers must try
not to reassure people is that the upshot is likely to be more frightening than
necessary.
Luckily, one might say, Government is
not trusted: its reassurances presumably are taken with a pinch of salt. It is
however very dangerous to cultivate the sort of easy dissidence, the penny arcade
cynicism, which many campaigners now indulge in. The decline of deference has
brought with it a decline in trust, and this has ushered in a sort of
disorientation which is as uncomfortable as it is sometimes liberating. The
decline of trust in authority puts progress at risk. It invites vulgar attention-seeking
from "people's" and "consumers'" causes whose cases are
often superficial, almost deliberately ignorant, but spuriously attractive to a
media and public disinclined to master difficult technical arguments, or listen
to nuanced arguments put by officialdom, academia or industry.
Government
and industry routinely operate to higher standards of evidence and truthfulness
than do the campaigners whose junk science and grandstanding seems so attractive.
There is a plethora of research which suggests that a majority of the public
believes they are more likely to hear the truth from non-governmental
organisations than politicians, officials, or journalists. This is not as
absurd a situation as one might at first sight think. Firstly, we can suggest
that people do casually believe that campaigners speak the truth as they see
it, whilst politicians or industrialists live in a more compromised world. To
make this a case for disbelieving
everything the later groups say is arguably naïve and wrong-headed, but it is
not crazy. More to the point, it is arguable that many people believe that it
is right and proper than there should be a force in society arguing against the
norm: to this extent, one might endorse NGOs as a counterweight more than as a
sole authority.
However,
and usefully, when push comes to shove, people do cast aside this sort of thinking.
The overwhelming majority of respondents placed their faith in regulatory
authorities (rather than litigation, community watchdogs or hoping for the
best) when asked what would best keep them safe whilst living near a potentially
dangerous chemical plant. [Marris, Langford & O'Riordan, 1998] What is
more, research shows that more than twice as many people place faith in industry's
scientists as trust the science of environmental groups, and they even trust
the scientists of the reviled government
more than the NGOs. [O'Riordan, Marris, & Langford, 1997]
BSE and science
Had
ministers simply reported the evidence on BSE as they had had it from the scientists
appointed to advise us all, the public would have been better aware that the
scientific view was quite clear, but also ambiguous. These are not contradictions
in terms. In 1989, after it first addressed the issue of BSE and public health,
"the science", in the form of the Southwood Report [Southwood, 1989],
certainly did not tell us whether to feel safe or not. The scientists said,
after all: that, first, there was very unlikely
to be a risk to humans from beef. They went on to say that, second, if they
were wrong the issue was very serious. The corollary of this is that there might be a risk, and that it was severe.
The first part of the statement was trumpeted and indeed distorted, by
politicians much more than by scientists, so that optimism dripped out of it.
The second part of the statement - the bit about, "if we're wrong, you're
in trouble", is what we needed also to hear. Of course, our responses
would vary. Mine - having heard both parts of the statement - was to go on
eating beef; many other people might have been rather more sceptical.
Note that the scientists - often accused
of saying nothing is dangerous unless they are absolutely sure they have seen
the smoking gun - left plenty of room for people to think BSE might be
dangerous. It was a political failing that led to the reassurance. Sometimes scientists
do get asked to give a judgement about whether something is safe: they should
resist the temptation to opine.
The point here is that we are wrong to
ask scientists to tell us whether we should or should not take a particular risk.
The best they can do is give a rough feel for the odds, sometimes very closely
(yes, it is very likely the sun will rise tomorrow), sometimes with rather
great uncertainty (we think BSE won't jump from cows to people, at least not
often or easily, but it's something - frankly - we know only a little about).
Assuming that human CJD turns out definitely
to be related to BSE, one is reminded that scientists should be robust in
standing up for their right to be uncertain, ignorant even. In July 1990, John
Gummer, the agriculture minister, wa saying “on the basis all scientific
evidence abailable, eating beef is safe” and in December 1995, the Prime
Minister, John Major was saying, “I am advised that beef is safe and wholesome
product. The Chief Medical Officer’s [Dr Kenneth Calman] advice on the point is
clear: there is no evidence that eating beef causes CJD in humans”. [Telegraph,
1996] That all seemed a little too strong at the time, and it has become a
little bit more too strong since. Had scientists used the phraseology quoted,
or been happy with the way it was used by ministers, they would have been
wrong. They should have read their Karl Popper on the problem of proving a
positive. [Popper, 1958]
The
scientists had indeed detected a new disease in cattle. Several of them thought
that the precautions that had been taken should very much reduce what was in any
case believed to be a very small risk of infection of humans. There was perfectly
sound case for not eating beef: it was that science had demonstrated that there
was a new risk attached to eating beef. It was possibly small, remote, and so
on, but it was plainly there. Other things being equal, one might rationally
switch from eating British beef.
Back
then to what ministers should say and do. In the case of BSE (and it is surely typical),
a less engaged stance by ministers would probably have led to a short, sharp
market collapse. Then there might have been quite a quick return to normal,
because supermarkets would have needed to find a way to engage with the beef
production process so as to be confident that they were offering their customers
uncontaminated beef.
In
the real world ministers are under several sorts of mutually reinforcing pressures
to reassure. Each ministry tends to defend a trade. Thus the Ministry of
Agriculture (MAFF) famously protects farmers. It is bound to and must: especially
when dealing with foreigners our farming ministry naturally tries to secure our
growers a good deal. Ministers are bound to try to defend British beef as best
they may, even if it manifestly has a serious question mark over it. This is
the old problem of government: how can it regulate what it must also promote?
We call it “producer capture” nowadays.
At least now there are fewer tensions
between what government must regulate and actually provide. Privatisations have
gone some way to loosening this dilemma as it used to apply to water and
electricity - and perhaps the same will apply to the new railway and power
systems. Even very recently, the Department of Energy, for instance, had an
important and compromised role in the regulation of the disposal of the Brent
Spar, and that may have helped lead to the second most famous environmental
debacle of the decade (the row over GMOs was a late starter but has overtaken
the famous oil storage buoy.
But most important: governments are bound
to defend the processes they have been regulating for a long time. It is natural
that the Department of Transport would claim that it has been a good steward of
railway safety, MAFF a good steward of beef. In other words, it falls to
regulators as much as to anyone else to defend their record, and who can blame
them?
If ministers have one sort of knee jerk
reaction to these sorts of crisis, so do oppositions. They must, after all,
prove that the ruling Government has failed. This prejudice leads them often,
and more than half regretfully if they are wise, to denigrate government in
general. It leads them to propose new institutions. In the case of food scandals,
it led New Labour in opposition to demand and (and now, in government, it must
deliver) a Food Standards Agency. History seems to be with them: most recently
we have seen the ten year evolution of the Environment Agency, so that the
former National Rivers Authority, various waste and pollution control functions
- to name the core areas of the EA’s operation - will now be given the
appearance and some of the substance of operating at arm's length from
ministers.
And yet such models should not blind us to the
constitutional and political facts. Only very selected bits of the risk management
process can be privatised. Only ministers and parliament can make rules and
laws. Indeed, there is an irony here: the various mildly dissident, liberal
voices calling for independent bodies to control food, say, or the environment,
are the self-same voices which often call for greater accountability. We seem to
want the politics taken out of lots of matters, and yet complain when the politics
begins to be taken out of those matters. We appear to like politicians when
they shoulder responsibilities which should in fact be ours. We would resent
them like crazy should they return too much of the risk and fear of freedom to
us.
This is, by the way, why we should worry
that the public seems to trust Greenpeace more than government (or indeed anybody
else). Greenpeace is trusted but unaccountable, whilst the politician is
accountable but distrusted. Both the trust and the mistrust are largely misplaced,
and that's bad enough; worse is that too many of us seem to delight in the
world being out of joint in this way.
So curiously, when the public, or a campaigner
claiming to speak for them, calls for some food - or rail, or nuclear, or any
other - safety matter to be put on an independent footing, the call is for
increased Quango-isation, without the recognition that everyone will complain
very much about the Quango-isation soon after it happens. The position is
mirrored in the education and health fields. The general mistrust of
centralised government leads to an effort to give power over school and hospitals
to local bodies. But the real risk here is that this allows different standards
in different parts of the country. People don't notice that this means that
what is available in one place may not be available somewhere else. The losers
by these processes soon call for national standards to be re-applied, and
central government obliges.
The Government will soon set up a quasi-independent
Food Standards Agency [MAFF, 1998; HoC Agriculture Committee, 1998] . For a few
years, probably everything will go swimmingly. The new body, with no track
record, will probably make some attractive noises and recommend to ministers
some interesting new rules, which might be enacted and be quite effective. It
might even, though this is far less likely, suggest that some of the existing
regulations are unnecessarily oppressive.
For a while the Anxiety Industry will
enjoy pillorying ministers when they refuse to act on some recommendation or
other of the agency. There will be calls for the agency to be given more power,
and this approach will be seen as giving power to the people.
But as soon as something goes seriously
wrong (a new BSE, a new salmonella), the honeymoon will end abruptly. Sooner or
later opprobrium will attach to the new agency: it will have recommended safety
measures which were either too expensive and bankrupted struggling
cheese-makers, or some such; or it will have recommended a rather lax approach
which killed someone. Perhaps - sod's law being what it is - both eventualities
would arise and even coincide.
And all the time, while the agency looked
like an independent regulator, actually it could only have recommended this or
that approach. It would be a regulator under licence: a franchisee of government.
So, the final responsibility would eventually have to find its way back to the
minister, because the agency's recommendations would have been turned into law
by parliament, that being what a democracy insists on - quite rightly. We saw
this hunt for the location of final responsibility when Michael Howard and the
Prison Service, an agency, tossed the ball of accountability for a gaol-break between
each other: and Mr Howard looked unattractive when he failed to catch and hold
it. But the public would feel cheated: it thought it had an independent friend;
the friend turned out not be such a chum; and then the friend's regulatory
independence was exposed as a sham anyway.
One of the important misconceptions about
British government is that it is secretive. Actually, its formulation of
regulations on safety (and much else) are extraordinarily open. Ministers have
over many decades set up an array of committees of experts to advise them on
risks of every sort. On food, chemicals, safety, the ozone layer - and much
else, there is a committee (on BSE there are at least two). MAFF, for instance,
has at least eighteen advisory committees, nine of them strictly scientific.
Many of them spawn sub-committees. The Department of Health has 36 advisory
bodies, about 25 of which seem strictly scientific or ethical [North, 1995].
Advisory committee members work hard for no pay.
In so far as their work is recognised at all, it mostly puts them in the line
of fire of sniping journalists and campaigners. Of course, the left points out
that the men and women chosen to serve are picked by the Government and often
their research has been sponsored by industry. Well, yes, that is true. But it
is hard to imagine a nation more prone to appointing lively and thoughtful
specialists to advise it.
Indeed, it is a crying shame that the
state has generally allowed a false impression to get about: namely that scientific
advisory committees are somehow appointed only to serve ministers. In fact,
most of the committees publish their work, and government would be wiser to
take the risk of stressing over and over again, and at the top of its voice, that
the committees are there to advise the nation - and the citizens of the nation
as much as its administrators.
Perhaps the public believes that the
committees produce their advice in a vacuum, and that government proceeds to ignore
much of it. Again this a wholly false impression: ministers almost always reply
in great detail to recommendations by scientific committees.
Perhaps the public believes that when
the state proposes regulations based on a scientific view, it does so magisterially
and arbitrarily. Again this is importantly not so. Not only, of course, must
regulations get through Parliament. What is as striking and much less
understood is that hardly any scientifically contentious matter is regulated
without a lengthy consultation period in which everyone and his wife is invited
to add their half penny’s worth to the debate, with the resulting lines of
argument debated at length in the Government's responses to the consultation.
Often the consultation is even more formal: the two houses of Parliament’s
select committees are there too, monitoring the quality of the Government's
response to the science it asks for, and the Government has to respond to these
second opinions, again in detail.
In other words: we can be confident we
regulate risk well in this country not merely on the basis that its citizens seem
to live as long as everyone else in the West. We can be confident because it is
so hard to see what could be done to make the administration of risk very much
better.
And yet clearly, the public isn't confident
of the process.
The proposal: the Agency
of Risk Assessment.
There
is a simple, cheap and useful reform which would not wave a magic wand over the
situation, but would be a useful step in the right direction.
All the committees which advise government
on risk matters should be corralled in a new Agency of Risk Assessment. Beyond
the existing committee framework, the Agency would undertake its own trawls of
opinion on difficult technical issues. It could also be the ring-master of
trawls of public opinion, and for Citizens' Juries, which are the burgeoning
technique for both informing and gauging public opinion. In an ideal world, the
statistics and census services would work under the same umbrella; and why not
the various ethical - as opposed to strictly scientific - advisory bodies as
well?
The agency would have its own secretariat
and its own public relations office. These would be its two main purposes: to
service disinterested inquiry into troubling matters, and to disseminate the result.
The Agency would need a lively chairman, capable of defending
its right to independence of mind. It would have its own board of trustees
(appointed by Government according to some post-Nolan system of fairness). It
would have its own executive. It might come to its own corporate view on some
issues. On others, it might prefer merely to let an advisory committee's work
speak for itself.
Most scientists currently working within
ministries should also be shifted out to this agency. The Ministry of Agriculture's veterinary science specialists
would work for it, and the Department of Health's medical specialists. The
Health and Safety Executive's safety specialists, and the Public Health
Laboratory Services could be amongst many others to join them. There would be
an important division of labour and accountability to be made. The Agency might
or might not take on the management of HSE policing, but the key issue is that
it should be the umbrella and defender of the independence of science and above
all of risk assessment.
It should report solely to Parliament, or perhaps
to the Crown, but be mandated as the Government's official source of risk
advice.
Of course, ministries would need a small
team of scientists of their own to assess and formulate responses to ARA's
advice. That is natural, because - to repeat the obvious - the Government ministry
must always formulate its own view of the legislative merit of any proposal.
Whenever ARA suggested any sort of regulation,
its likely costs to society would have to be assessed by the agency. This would
deter ARA from an ivory-tower propensity to command that everything be stopped in
case anything was a risk.
The idea of a wholly independent risk advisory
body might frighten ministers. Here, after all, would be a powerful loose cannon
on the deck of the ship of state. Its recommendations would be hard to refute
and shift. The body might be respected without being particularly popular, and
the Government which introduced it might therefore gain few points even in the
short term.
There would, however, be substantial
advantages to the body politic. At the moment, on issues from Brent Spar to BSE,
and including the need for roads or the risks of surgery, the Government is the
victim of some very much looser cannons than the ARA is likely to be. Attention-seeking
campaigners play fast and loose with every fact, and every informed opinion,
which comes to hand. Because they are generally very much less truthful and
almost always much more partisan than ministers and because their proposals are
often overly expensive and likely to be inadequate in reducing risk, ministers
- and the public the ministers represent - have much to gain from a reform
which forces the campaigners to raise their game or be exposed as intellectually
deficient.
That argument is not what will clinch
the matter for politicians. Chris Patten, as Environment Secretary, once put a
more cogent one: he said that sooner than being endlessly bounced by this or
that sudden media outcry on this or that suddenly fashionable campaign, he would
rather face up to responding to well-marshalled scientific evidence, which
generally evolves rather than explodes. [Private conversation] Yes, the latter
might seem to tie ministers' hands; but the former is infinitely more stressful.
The facts of most matters favour the quiet, normal,
level-headed sort of assessment and regulation British government is good at.
Where the evidence would lead most sensible people to a conclusion different to
the one natural or convenient to government (Brent Spar was probably one such
case, oddly; BSE another), ministers would probably gain by knowing the lie of
the issue early in the process rather than late. In other words, sometimes the
public would accept the scientific view put by the agency, and at other times
listen to the science and insist on ignoring it. The agency would not much
mind, necessarily. It would as much be the custodian of the public's response
to risk as to the scientists'. Either way, the role of science would be better
enshrined: it would have a far better chance of fighting its corner.
Science would be encouraged to stick
more comfortably within its proper remit than it does now. As things stand, ministers
hope advisory committees will make very firm recommendations that this or that
is "safe" and does not need to be banned. These sorts of recommendations
allow ministers to shelter under the defence that they recommended, say,
continued use of a substance on scientific evidence.
It
is important that the public realise that there is a huge distinction between marshalling
and assessing the evidence about risk, and pronouncing products or processes
acceptable or unacceptable. The former is a scientists' task. The latter is,
finally, a matter for political - that is to say, public - judgement. A
sensible person - or the politician charged with the job - listens closely to
the scientist as he describes a risk; and then makes up his own mind about
whether he wants to take it.
An Agency for Risk Assessment does not
answer every difficulty. It would become, perhaps undeservedly, popular or unpopular
as its judgements accumulated a history and were proven perhaps only modestly
successful. But its strictly advisory remit might keep it free of that laager
mentality that locks regulatory institutions into the defence of whatever their
historical judgement had been. At least ministers and the public would know
that it was the best think-tank in the country, but was not a regulator. It
would have little responsibility but little power too. It would be an engine
for truthfulness, which must always be worth standing up for.
One would have always to remember the
fallibility of the entire enterprise. What one says about the riskiness of any
human activity is very liable to be wrong. One's attempts to control risk are
apt to be either unwieldy or inadequate, or both. Knowing that, the public needs
to be grateful for the politician for taking on the job.
Politicians for their part need modestly
to stress the hazardousness of controlling hazard, and their own fallibility.
To do so would not be to induce a culture of mistrust and fear. Rather, people
might begin to recognise what they do know in their heart of hearts: that life
is risky. It was, indeed, only the presence of a nanny state which turned us
into child-minded citizens, demanding a nursery-world cosiness - and showing a
childish petulance when things went wrong. Neither nanny nor her charges are
really dim-witted, and need only a little nudge to talk sensibly again.
Chapter Seven
Managing risk: throwing the
precautionary principle to the winds
Minimising
risk is a difficult business. It is difficult in a first order sort of way: it is
practically difficult, for instance, to reduce the chances of a chemical plant
blowing up. [Kharbanda & Stallworthy, 1988; HSE 1989] But there are two
larger and odder difficulties, which crucially hinge on our attitude to risk.
One is that reducing one risk pretty
well inevitably results in increasing another, so our willingness to reduce this
or that risk depends crucially on whether we think the alternative risks we
would now invite are better or worse. They will often be different sorts of risks,
and perhaps involve hazard to different sorts of people.
Much of the time, deciding whether to
make the switch between the risk in front of us and another about which we may
know much less is not likely to be solely a matter of science, but as much a
matter of taste; not of fact but of attitude. Scientific and emotional maturity
will both be required in dealing with them.
When we swap one risk for another, the
exchange is likely to be even more complex than, say, swapping a cancer risk
for a bacteriological one. The difficulty may be more abstruse than that. We
may swap a tangible risk for a less tangible one, a focussed one for a more diffuse
one, a local one for a distant one, a present one for a future one, an feared
but actually mild species of risk for a comprehended but nasty one. We may save
ourselves a direct, physical or biological risk but in exchange incur the
nameless and diverse risks of having a less affluent economy. We may shift risk
from super-sensitive affluent people onto careless but poor ones.
The people who assert that we are already quite
rich enough and that affluence is actually a big part of the problem are usually
rich as well as impatiently anti-materialist. They habitually become highly
sensitised to certain sorts of risk. Someone who is poor and sees that poverty
is risky in some way (perhaps they have a child who risks under-fulfilment
through not being rich enough to go to university) may see risk quite
differently. Risks, in other words, may be quite complex in the way they are
displaced and replaced. Environmental or health risks may seem very different
according to the degree one senses oneself to be at economic risk.
The clearest cases of the risk-swapping
dilemmas are well-rehearsed. Industry enjoys them, of course. There was the
famous case of an outbreak of old-fashioned cholera in Peru caused partly by a
reliance on a US Environment Protection Agency advisory note that chlorinating
water posed a carcinogenic hazard. [Mooney & Bates, 1999]
The cholera was real but the carcinogenic hazard was more or less - but not
entirely - illusory.
The risk which was widely advertised
in the West may have been small and its consequences inflated, but it might be that
the West could afford the attitude, and to switch from chlorination to, say,
ultra-violet sterilisation. The advice did not travel well, however.
There is a wider and more worrying attitude
to risk, which flows from campaigning. One of the most obvious cases is the
general reluctance to invest in municipal waste incinerators of the modern
kind. These recover some of the energy in much of our domestic and commercial
waste and could be said to turn paper, plastic and food waste into a fuel,
albeit one which is not as good as coal, oil or even - differently - uranium.
Incinerators work with little pollution. But they are unpopular because green
campaigners have associated them with an air pollution problem, and especially
with dioxins, which actually are barely detectable in incinerator smokestacks
and are not in any case quite the horrors they have been cracked up to be. [Imperial,
1997 & 1998] But it is hard to get good discussion on such realities off
the ground. There is now a small but growing literature and body of opinion in
favour of proper levels of evidence, and proper reliance on evidence, in coming
to conclusions. [Mooney & Bate, 1999] In the case of dioxins, there has
been a long tradition of respectable science suggesting that the risk is not as
advertised by green alarmism. [Bate, 1997]
Now this attitude, based on prejudice
and outdated information, is hard to shift and has now often become political
policy, at least at local level. It sits well with a politically-correct view
amongst politicians to concentrate on recycling, treatment and, at a last
resort, landfill solutions to waste. Now all of these have their place and can
all work well in various situations. But they present more obvious and real
difficulties than does incineration.
None of the risks seem huge, in any direction.
The mistakes being made are unlikely to feature in any future obituary of
western civilisation. But they are real. What is worse, the way the problem is
discussed makes the interested citizen feel that there is no solution to hand
for the waste which results from his lifestyle. He is on the receiving end of
an attempt to make him feel guilty about his materialism, whose outcomes, it is
repeated stressed to him by campaigners, have no technical solution. Technical
fixes, such as incineration, are always disliked by the greens because they
allow the possibility that the core message about the ecological consequences
of materialism is weaker than might be thought.
Actually, most of the pronouncements
of the green movement over the years have critically involved this sort of mistake.
How was it that a nice and intelligent group of people could be so wrong on
matters which they professed to have specialised in? The reason is obvious,
actually. The greens were, by and large, young and inexperienced arts and
biology graduates, with very little knowledge of or investment in the world of
getting a living. Often affluent themselves, but only because of their parents’
efforts, they set themselves to oppose the world view of a generation of
industrialists, scientists and regulators which had been the heir to a long tradition
of trying to do industrial processes as well as possible. There had been so
much learning from mistakes and the application of so much practical caution
and the balancing of so many dilemmas that it was hardly likely that the greens
would discover some instant holy grail.
This does not mean that the greens were useless.
They may have provided a useful reminder to the rest of us that everyone should
take some sort of interest in risk and they may have sharpened the risk-makers'
perception of the issues. They usefully reminded people that the gains we have
made materially may have had some negative results - say in making us more
materialist and dissatisfied - quite apart from the physical risks we run.
But the green claim to have alerted industry and
its regulators to very much or to have proposed solutions of any great interest
are flawed. And what is worse, the greens have contributed to the cultural flaw
which now seems to afflict people: the sense that they are at great, new and
intolerable risk.
The biggest single issue here is that
there is a green tendency to suppose that our main attitude to risk should be
one of reducing it. The right is inclined to argue that we would be wiser to adopt
a shift toward a view which supposed that we should optimise risk rather than
reduce it.
There is now a profound political battle
in play about what should be the underlying attitude of governments towards any
new development that involves risk. That is to say, about all developments.
The problem for government is not merely that this
has always been a difficult area. We are now having to deal with risks which
previously could only be guessed at.
The
greens historically campaigned about specific risks, such as acid rain or smoke,
and were used, furthermore, to complain about fairly obvious effects from them.
Even in the case of nuclear power, whose risks were not all supposed to be
immediate or obvious, it was at least clear to the protestors that radiation
was something we all should fear and whose effects vested interests were
systematically underestimating and callously forcing on us. These risks were
fairly direct, though some of them were what one might call modern. Low level
radiation, especially, was involuntary, insidious and ubiquitous. One could not
contract out of the risk; it killed, if at all, slowly; it permeated everywhere.
Even
so, by and large, these specific risks, or scenarios of callous behaviour by industrial
interests, and carelessness and worse by governments, have proved less
terrifying and convincing to the public than the greens might have supposed.
The passage of time has revealed most technologies to be manageably safe, and
to have acceptable dangers attaching to their normal and occasionally flawed
operation.
In the 80s the greens shifted attention
toward pollutants whose effects were still highly uncertain, about which there
was a good deal of ignorance. Dioxins [Bate, were typical of this new breed of
risk: in humans they might or might not cause a wide range of effects, or none.
They killed some rodents with incredible ease; others, they barely affected.
But even dioxins lost their power to shock the public, especially when
regulators diminished their presence.
The green's response has been to move
onto some new risks, for instance, the gender-bending chemicals, and the organophosphates,
and to discuss them in much the same way they used to discuss the now less
fashionable risks. The threat of global warming caused largely by the burning
of fossil fuels has taken over from the fear of running out of fossil fuels.
Genetic engineering has taken over from nuclear power as an especially modern
and technological risk.
These risks share a characteristic which
is very handy to the green case. Whilst the degree of risk they pose is highly
speculative, it is nonetheless plausible and may be very serious.
The levels of uncertainty about these
new risks are truly stratospheric. What is
difficult and necessary is to explain and it makes no sense for us to accept
the green logic that their old call for a cautious approach is more legitimate
than ever. To do is all the harder now that an absurd attitude to risk now
seems to have been enshrined in political and legislative language.
The
precautionary principle, which is in one form or another commonly now stated as
policy by both greens and governments, states that quite often action ought to be
taken to avoid a risk even when there is incomplete scientific evidence as to
its riskiness.
In The Politics of Risk Society, Stephen
Tindale, the director of the Green Alliance, quotes Jordan and O'Riordan as
defining the precautionary principle as "giving the environment the
benefit of any reasonable doubt" and "shifting the burden of proof
from the victim to the developer". In the case of BSE risk, he says: "The
burden of proof is with the producer: the farmers will have to prove that beef
is safe before people will eat it again".
It's clear what is happening here: technology
and man are in the dock, and caution is the prosecutor. But the normal
principle of guiltiness is to be reversed. Technology's guilt does not have be
proved beyond reasonable doubt by the greens, but rather it is assumed to be
guilty until it can prove itself innocent. The difficulty is that proving oneself
incontrovertibly innocent is harder than launching a plausible accusation of
guilt. Indeed, it is actually impossible. We know of nothing that is safe, but
we do know quite a lot of things are mildly or even very dangerous.
With such restrictions, simultaneously woolly and
draconian, the whole human enterprise would have to be shut down. The greens'
contentedness to use language like this is a sure sign that they are not
thinking usefully.
Tindale goes on to say that of course
the precautionary principle is not in practice much applied. Instead, he argues,
that the "Panglossian principle" is at work. "Unless it can be
categorically demonstrated that something is wrong we will assume all is well.....This
is the guiding principle of most environmental policy, from global warming to
dog faeces."
But this gesture to realpolitik does
not bring Tindale much nearer to reality. He cites the government's regulation of
Sellafield (the renamed Windscale nuclear reprocessing plant) as being contingent
upon a belief that there was no proof of harm from low level radiation. But
actually, low levels of radiation are regulated as though there were extremely
hazardous even in the absence of any evidence that they are. It is not
carelessness or the Panglossian principle which brings the governments of the
world to international negotiations about global warming. Governments do act on
the principle that there may be something in these threats, though there is
only circumstantial evidence that anything is wrong or that we ought to do much
about it.
Tindale is right when he goes on to suppose
that it makes sense to employ the standards of civil court guilt rather than
criminal court guilt to HSE issues. This implies that "the balance of probabilities"
is what should be at issue, not "proof beyond reasonable doubt". But
then he would have been wiser not to cite with approval the idea that
developers should prove beyond any reasonable doubt that they will not harm the
environment. That requires a level of proof that he won't accept when he is
trying to persuade us of the guilt of a substance or process.
Indeed, it makes no sense to cancel a
development just because there is a balance of probabilities that the environment
will be harmed. The question here is not merely whether we believe damage is
likely, but whether we believe it is worth risking. That depends on applying
principles far richer than the Precautionary Principle.
The difficulty with the Precautionary
Principle is that it is meaningless until it is defined. Defined as Tindale and
most greens like, it is useless because it is laughably draconian.
There are two ways out of this problem,
and the German government, which invented the Precautionary Principle, used the
more formal of them. This is to say: the Precautionary Principle was set up in
tension with another two principles, one which required government action to be
"proportional" and another which required it not to be "excessive".
One applied the Precautionary Principle whilst also applying the idea that
regulations should not stifle human activity which was thought valuable, and
one should not take regulatory sledge-hammers to crack environmental nuts.
[Jordan & O'Riordan, 1999]
The British government, allergic to large
principles, but keen on statements which capture nuances, usefully formulated
the principle, as Tindale notes, thus:
"We
must act on facts, and on the most accurate interpretation of them, using the best
scientific and economic information. That does not mean we must sit back until
we have 100 per cent evidence about everything. Where the state of our planet
is at stake, the risks can be so high and the costs of corrective action so
great, that prevention is better and cheaper than cure. We must analyse the possible
benefits and costs of both action and inaction. Where there are significant
risks of damage to the environment, the Government will be prepared to take
precautionary action to limit the use of potentially dangerous materials or the
spread of potentially damaging pollutants, even where scientific knowledge is
not conclusive, if the balance of likely cost and benefits justifies it."
This
sort of thing makes one proud to be British. It is admirably free of rhetoric and
high flown principle. It will keep one safe from fashionable orthodoxies. It is
a clarion cry to action and a whisper of caution. It reminds one, above all,
that the statement of principles is seldom the end of any matter. Nothing can
take the problem of risks away from us.
Ends
the essay
References
follow
[[all in place
except the beckerman, small is stupid reference]]
AAdams,
1999 Adams, John, an essay in a useful collection (including offerings from Roger
Scruton and Kenneth Minogue) from a conference mostly endorsing robust risk-taking,
The Risk of Freedom: Individual liberty and the modern world, Institute of
United States Studies, University of London, Senate House, Malet Street, London
WC1E 7HU; Adams 1997 Adams, J, Cars Cholera and Cows: virtual risk and the
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Almond, 1995 Almond, Brenda,
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Windsor Castle, describes a tradition from Kant toThomas Kuhn, via Wittgenstein,
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that can be found, “as an indefinite plurality of standpoints” in which “truth
is made rather than found”. She cites Rorty, R Solidarity or Objectivity, in
Post-Analytic Philosophy, ed J Rachman and C West, New York, Columbia, 1985
page 10
Bate,
1997 ed Bate, Roger, What Risk?, Butterworth-Heinemann, Oxford, 1997
Beckerman,
199? Small
Is Stupid,
Bernstein,
1996 Peter L Bernstein, Against the Gods: The remarkable story of risk, John Wiley,
New York, Chichester, 1996
Daniel
B Botkin, Discordant Harmonies: A new ecology for the twenty-first century, Oxford
University Press, New York, 1990
Budiansky,
1995 Budiansky, Stephen, Nature’s Keepers: The new science of nature management,
Weidenfeld and Nicolson, London, 1995
Daniels,
1993 Daniels, Stephen, Fields of Vision, Polity Press, Cambridge, 1993 is an excellent
way into this literature.
Doll
and Peto, 1981 Doll, R and Peto, R, Avoidable risks of cancer in the US, Journal
of National Cancer Institute, vol 66 number 6, June 1981. This is cited here as
a classic epidemiological paper by two classic UK epidemiologists
Drucker,
1985 Drucker, Peter, Innovation and Entrepreneurship, Heinemann, London 1985
Financial
Times, 98 Nick Gillies wrote in Business and the Law, Civil Litigation, “Cases on
a scientific edge”, about several lawyers taking on “junk science” and recommended
www.junkscience.com as a source of US material. Financial Times, 18 August, 1998
Franklin,
1998 ed Franklin, Jane, The Politics of Risk Society, Polity Press, Cambridge, 1998.
Furedi,
1997 Furedi, Frank, Culture of Fear: Risk-taking and the morality of low expectation.
Cassell, London and Washington. This author has done more than anyone else
systematically to discuss this issue.
Furedi,
1998 Furedi, Frank, Robbing kids of their childhood and teaching parents to panic,
LM, September 1998.
Furedi,
1999 Furedi, Frank, Courting Mistrust: the hidden growth of a culture of litigation
in Britain, Centre for Policy Studies, 1999.
Hayward,
1995 The Hayward Gallery’s show and catalogue, The Romantic Spirit in German Art
1790-1990, makes clear the difference in spiritual and emotional intensity between
British and German romanticism.
HSE,
1988 Health and Safety Executive, The tolerability of risk from nuclear power stations,
HMSO,
ISBN
0 11 883982 9, 1998
Belying
its unpromising title, this is a valuable round-up of wide-ranging risk issues.
HSE
1989 Health and Safety Executive, Human Factors In Industrial Society, 1989.
HoC
Agriculture Committee, 1998 House of Commons Agriculture Committee, Session 1997-98, Fourth
Report, Food Safety. The MPs said they were less convinced than some
enthusiasts that the Agency would always be loved by the public, or that its
advice would always be preferred to that of the Ministry.
Imperial, 1997 & 1998.
The proceedings of two industry-sponsored conferences: Options for urban waste management in the 21st Century, 22
October 1997; Options for urban waste management: Costs, benefits and
realities, 12 November, 1998, The Environment Office, Imperial College, London,
SW7 2AZ.
Independent,
1997a Cooper, Glenda, Why death of Diana
was good for our health, Independent, 16 December 1997, page 3
Independent,
1997b Nicholas Schoon, the paper’s environment correspondent in “Extinction? Why
it may not matter” put Nee, 1997 in a nutshell, page 7, the Independent, 25 October,
1997
James,
1997 James, Oliver, Britain On the Couch: Treating a low serotonin society, Century,
London 1997.
Jordan
& O'Riordan, 1999 Jordan, Andrew, and O'Riordan, Timothy, The precautionary
principle in contemporary environmental policy and politics, in Tickner, J and Raffersberger, C (eds), To Foresee
and Forestall: Putting the precautionary principle into practice, Island Press,
New York, 1999 These authors are at the Centre for Social and Economic Research, University at
East Anglia, Norwich and write rounded accounts of the debate on precaution and
risk perception.
Kharbanda
& Stallworthy, 1988, Kharbanda, O P & Stallworthy, E A, Safety In the Chemical
Industry: Lessons from major disasters, Heinemann Professional, London, 1988.
Demonstrates through many cases the kind of human error which explains most
disasters, from penny-pinching through failures of imagination and attention to
detail to poorly-thought-through tinkering with design.
Knight
& Pretty, 1998 Knight, R and Pretty, D, The Impact of Catastrophes on Shareholder
Value, Templeton College, University of Oxford, 1998.
Lovelock,
1979, Lovelock, James, Gaia, A new look at life on Earth, Oxford University Press,
Oxford, 1979; Lovelock, 1991 Lovelock, J, Gaia: The practical science of planetary
medecine, Gaia, 1991
McCann,
1998 McCann, Hastings, A and Huxel, G R, Nature, vol 395, pages 794-798, 1998
McKibben,
1991 McKibben, Bill, The End of Nature, Viking, London, 1991.
MAFF,
1998 The Food Standards Agency: A force for change, Ministry of Agriculture, Fisheries
and Food, White Paper, Cm 3830, January 1998
May,
1973 May, Robert, Stability and Complexity in Model Ecosystems, Princeton University
Press, 1973
Mooney
& Bates, 1999 Mooney, Lorraine and Bate,
Roger, Environmental Health: Third World Problems – first world preoccupations,
Butterworth-Heinemann, Oxford, 1999
Marris,
Langford & O'Riordan, 1998 Marris, C, Langford, I & O'Riordan, T, Integrating
sociological and psychological approaches to public perceptions of environmental
risks: Detailed results from a questionnaire survey, 1998.
Nee, 1997 Nee, Sean and May,
Robert, Extinction and the loss of evolutionary history, Science, Vol 278, 24
October, 1997
North,
1995 North, Richard D Life on Modern Planet, Manchester University Press, Manchester,
1995. Page 179 and following I discussed the reasons for raised life
expectancy.
O'Riordan,
Marris, & Langford, 1997 O'Riordan, T, Marris, C, & Langford, I, Images
of science underlying public perceptions of risk, in Royal Society, 1997
Pearson,
1983. Pearson, Geoffrey, Hooligan: A
history of respectable fears, Macmillan, London 1983, is a very good account of
nostalgic blindness to the faults of earlier times.
Polis,
1998 Polis, Gary A, Stability is woven by complex webs, Nature, October, 22, 1998,
vol 395, page 744.
Popper
, 1958 Popper, Karl, The Logic of Scientific
Discovery, 1958.0
Price
Waterhouse, 1997 Price Waterhouse’s Financial and Cost Management Team, CFO: Architect
of the corporation’s future, John Wiley, Chichester, 1997
Royal
Society, 1997. Science, Policy and Risk, 1997, proceedings of a discussion meeting,
held at the Royal Society, March 1997, RS, 6 Carlton House Terrace, London SW1Y
5AG
This
is a good guide to some of the new cultural theory thinking on the sociology of
risk
Risk:
Analysis, Perception and Management, Royal Society, London (see above), 1992 is
a good, more technical and less sociological, account of the issues.
Sapolsky,
1994 Sapolsky, Robert,Why Zebras Don’t Get Ulcers, Freeman, New York. A readable
account of the role of stress hormones in animal and man.
Scruton,
1998 Scruton, Roger, On Hunting, The Yellow Jersey Press (Random House, UK), 1998
Naturally, this is not the author’s account of his hunting courage, but that of
others, amongst much else.
Sennett,
1998 Sennett, Richard, The Corrosion of Character: The personal consequences of
work in the new capitalism, W W Norton, New York and London, 1998, describes what
the author sees as a new sense of disorientation accompanying footloose capitalist
enterprises.
Simon
& Kahn, 1984 Simon, Julian L and Kahn, Herman, The Resourceful Earth: A response
to Global 2000, Blackwell, Oxford and New York, 1984.
Southwood,
1989 Southwood, Richard, “The Southwood Report”, Report of the Working Party on
Bovine Spongiform Encephalopathy, Ministry of Agriculture, Fisheries and Food, 1989.
Standard,
1998 Evening Standard, When high spirits turn to heartbreak, 14April 1999, page
32.
Strex,1998
Angela Patmore of this consultancy firm
is the author of Killing the Messenger: The pathologising of the stress
response, commissioned by the University of East Anglia’s Centre for
Environmental and Risk Management and available from Strex Ltd, 44 Edmund
Green, Gosfield, Essex, CO9 1US, Telephone 07050 055344. Angela Patmore
organised a conference in 1998 during which Dr Rob Briner, Dept of
Organisational Psychology, Birkbeck College, University of London and others
presented papers debunking many fashionable ideas about stress. Speakers
included Dr Yvonne McEwen, formed director of the Dept of Trauma Management,
Fife University, who is a pioneer voice arguing that suffering in grief is
natural and necessary and that it cannot wisely be thought of something that is
to counseled away.
Sunday Times, 1998a The Sunday
Times usefully discussed the fund’s downfall and rescue, September 27, 1998,
Business, pages 5 and 8.
Sunday Times, 1998b Matthew
Lynn discusses shareholder value in these terms, Business Focus, page 10,
Sunday Times, 27 September, 1998
Tallis,
1997 Tallis, Raymond, Enemies of Hope: A critique of contemporary pessimism, Macmillan,
London and St Martin’s Press, New York
Telegraph,
1996 “How politicians reassured the people”, The Daily Telegraph, March 21, 1999,
page 4.
Telegraph, 1998a Celia Hall
reports in the Daily Telegraph, September 10, 1998 (page 13) that the government’s
chief medical officer believed that “modern life” and its demands were driving
people to depression.
Telegraph,
1998b The Daily Telegraph, The right sort of risk can work wonders, June 10, 1998,
page 21.
Telegraph,
1998c The Daily Telegraph, Helicopters lift 55 sailors to safety, December 29, 1998,
page 4.
Telegraph,
1999 The Daily Telegraph, Horse riding “riskier than motor bikes”, January 27, page
5
Times
1996. Michael Streeter, The Times, 2 July 1996, page 3, reported the case of a man
awarded £750 damages from McDonald’s on account of being scalded by apple pie.
The case mirrored a 1994 case in the US when an 81-yeard old won £320,000 from
the same firm after being burned by hot coffee.
Times
1998a. Alison Clarke, The Times, August 25 1998, Law section, page 35, reported
that a teacher accepted £100,000 after being bullied by his headmistress and added
that the National Workplace Bullying Helpline had received 3000 calls in two
years or so, a fifth from teachers.
Times,
1998b. “Lords overturn police claim on soccer
disaster”, 4 December, 1998, page 3
Times, 1999 Steve Keenan
reported, The Times, 23 January 1999, page 30, that British Airways were taking
special security measures after a spate of air rage incidents which have continued
to attract attention. The Independent had earlier reported (13 December 1998)
that traffic wardens were being trained to deal with “ticket rage”.
Webster, 1994 John Webster,
Animal Welfare: A cool eye toward Eden, Blackwell Science, Oxford, 1994. A
fairly cool account of animal welfare, including a discussion on stress hormones.
Wildavsky,
1988 Wildavsky, Aaron, Searching for Safety, Transaction Publishers, New Brunswick
and Oxford, 1998 This is one of the most original and pugnacious texts in
favour of an understanding that risk is necessary and vital.