❖ Power Structure in the Liberal Capitalist State: An Analytical Framework ❖
✍ By: Dr. Javed Akbar Ansari
◈ Introduction to Dr. Javed Akbar Ansari
Dr. Javed Akbar Ansari is a distinguished Pakistani economist with an MSc from the London School of Economics and a PhD from the University of Sussex, England. His research spans financial and industrial economics, modern capitalism, and political and moral philosophy. He has worked with British universities, UN institutions, and Pakistani financial organizations, and has taught at IoBM Karachi and Safa University. His writings have appeared in Dawn’s Economics and Business section.
◈ Formation of Power in Capitalist States
Society vs. State
- Society is based on voluntary relationships, where individuals engage freely.
- State is a coercive power structure, using force to regulate and maintain order.
◈ Who Holds Real Power in the Liberal Capitalist State?
In a liberal capitalist system, power is held by those who wholeheartedly believe in capitalist rationality.
✔ Capitalist rationality implies that maximum opportunities should be provided to individuals for the fulfillment of their desires.
✔ Those who fully embrace this worldview rise to power, and this mindset governs their decision-making.
◈ Mechanism of Governance and Stability of Power
How is Capitalist Rationality Sustained?
- This rationality becomes entrenched only when society collectively accepts it as the only viable model for decision-making.
- At the state level, capitalist rationality must be made universal, with institutional and public adherence to ensure its dominance.
◈ Democracy vs. Authoritarianism: Superficial Difference
Two political systems may operate within a liberal capitalist state:
① Democracy
② Authoritarianism
Although structurally different, both are rooted in capitalist rationality. All decisions—whether under democratic or authoritarian regimes—are based on economic logic centered on capital growth.
◈ Institutions of State Power
✔ Power Distribution in Different Regimes
- In democracies, state institutions, media, judiciary, and elected officials play central roles.
- In authoritarian regimes, military, police, and bureaucracy hold dominant power.
➡ In both cases, the primary goal remains the preservation and expansion of capitalism.
◈ Key Actors and Institutions in the Capitalist State
① Intellectuals:
They legitimize capitalist rationality through argument and academic discourse, shaping public opinion accordingly.
② Cultural Heroes:
Athletes, scientists, and media personalities are elevated as role models, encouraging mass emulation of capitalist lifestyles.
③ Technocrats and Bureaucrats:
They formulate and enforce laws and policies based on capitalist interests, maintaining systemic coherence.
④ Military and Police:
They are the instruments of state coercion, used to suppress opposition to the capitalist order.
◈ Major Institutions of Capitalist Power
- Corporations:
The backbone of the capitalist economy, where profit maximization is the sole objective. - Banks and Financial Institutions:
These institutions channel public savings into investment, facilitating the expansion of the capitalist economy. - Education System:
It plays a crucial role in promoting capitalist values while sidelining religious or moral teachings. - Judiciary and Legislature:
These bodies protect capitalist interests by interpreting and enforcing laws through the lens of capitalist rationality.
◈ Implementation of Capitalist Rationality: Three Phases
① Capital as the Sole Standard of Value:
Every economic decision revolves around capital accumulation.
② Expansion into All Spheres of Life:
Family, education, religion, and even social interactions are molded according to capitalist principles.
③ Public Internalization:
The system is made so commonplace and normalized that people begin to see it as the only path to prosperity and success.
❖ Conclusion ❖
In a liberal capitalist state, power resides with those who are ideologically committed to capitalist rationality and work to perpetuate its dominance. Regardless of whether the regime is democratic or authoritarian, the core objective remains the same: to strengthen and expand the capitalist order.
The public, both individually and collectively, is absorbed into this system so deeply that capitalism becomes the governing force across all dimensions of life.
