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Is economic competition a factor of progress or alienation?

Introduction.

If you look at the current economic situation throughout the world, you can wonder whether the neoliberalism is really advantageous for everybody. Does the competition which results from it between the companies support to their development or does it create a gap between the industrialized countries and the poor countries? Two principal poles are opposed in connection with this subject: on the one hand capitalists, for which the current situation seems rather favourable, and on the other hand those which think that the neoliberalism only corresponds to the wishes of a small part of the population. Those would like a more social, more equal world. The first ones can be represented by the economic forum of Davos, while the seconds ones are by the social forum of Porto Allegre. If an answer were to satisfy the two kinds of thoughts opposed today, a real change depends nevertheless from the good willingness of the richest countries as the others don’t have enough influence to control the situation. Those already took a step while being invited in Porto Allegre, indeed the idea of a more equal globalisation starts to touch certain spirits as for example the banks which invest funds in the developing countries. All these elements show the relevance of the question "Is competition synonymous with development or allienation?" The goal here is not to answer this question - there is no all made answer -, but to draw well with light certain points which seem significant in connection with this subject.

Summary of the expert’s interview.

Name, first name:  Lenoir Lucien Formation: bachelor in commercial and consular sciences. Currently administrator of a company

Mr Lenoir thinks that all the economic sectors are not prone to competition. Moreover, in each branch of industry, competition is divided in two plans: on the one hand competition between the large companies, and on the other hand competition between SME. It generally applies horizontally, by levels because the first ones rather compete for parts of market while the second ones try to be characterized by quality from their services. He says that this spirit of competition does not prevent SME from growing, all is a question of will. If you ask what is liberalism in accordance with him, he answers that on the one hand there is school of liberalism (A Smith), which says that the economy answers the natural laws. But now, a new kind of neoliberalism is known: it is the State or powerful financial groups which lead the economic trend. A to him the laws of the economy are more complicated than the natural laws (the law of the strongest): as the most resistant companies with the greatest capacity of adaptation take a lead in the market, it is more linked to Darwin’s theory. Mr Lenoir also thinks that the current neoliberalism is more close to capitalism that liberalism was at the beginning. The State only intervene in economic affairs as a supervisor of excess. According to him, the large companies do not lead the world economy. Indeed, they are not masters of themselves: they depend on the will of the investors. Because of their requirements, the companies must often eliminate from not-profitable activities. With regard to the ultra-liberal economic system of the USA, he thinks that the American policy is too protectionist. Consumption and the debt have been belonging to their way of thinking for a long time. Moreover, the task is easy as the exchanges take place in dollars on the international markets. When he is asked whether the goal of each company is not to reach nearly a monopoly, he answers that temptation is large, but that that is not beneficial long-term. When you are the first, you tend to fall asleep and at the en you are made catch up with. Moreover, such a situation would be very bad for the consumers, more especially as they do not have any means of protection.

Argumentation and against-argumentation.

Economic competition.

The free competition constitutes one of the pillars of liberal economy. According to J Rueff, competition is not the result of the behaviour of individuals; it answers rule of ethics, practices. It can be even regulated by a country legislation. Its positive effect is that it is the spearhead of technical progress. It can constitute an stimulus which is strong enough to reveal to the man abilities which he wouldn’t have suspected in him. For this reason, it plays a role of factor of selection which will decide survival of the company.

Alienation

JJ Rousseau was the first to talk about it like " the normal being" of the man who has became social. Then Marx took again this concept while placing it from the point of view of the social relationship of work and production. Because of the technological developments, a conflict between the machine and the man emerged. Rather than to dominate the machine, he became controlled by it. The contribution of the worker becomes negligible compared to the multiplied value of the production equipment. Nowadays, the man tries to contribute to the research and the improvement of quality, thus contributing to technical progress and thus satisfying his needs for self-achievement.

Social conflicts.

Any company is characterized by the coexistence of various social groups which are in competition. Where the interests encroach and are opposed, competition between these groups can generate conflicts. The conflict from itself is beneficial for the group because it enables him to ensure its own defence, to be aware of its existence and to claim its difference, and thus to ensure its own survival.

The war. The war between States resulting from the will from a State to extend the territory of its competition constitutes an expression of the internal conflicts of a society. The feeling of insecurity, or the expansion forces which will be generated inside a society will be managed by mobilizing the whole State against an external enemy.

Determinism.

This doctrine recommends that the existence condition of a phenomenon are given in an absolute way. Thus, all the events, and in particular all the human actions (FREUD), dependent and are determined by the totality of the former events.

Malthusianism. This doctrine developed by MALTHUS, talks about competitive relationship existing between the population on the one hand and the resources on the other hand, thus emphasizing the distortion which exists between the multiplying power of the human race and the capacity to produce means of subsistence. Thus if an area seems more populated, it is because this area produced more means of subsistence.

The competition like factor of selection.

According to Darwin, the natural selection constitutes the spearhead of evolution. Thus, when the resources are limited, the more adapted species, which have the highest capacities of reproduction, will survive while the others will disappear. The man, during his history, sometimes wanted to defy this natural selection by applying an artificial selection aiming at selecting people supposed to be of a higher race. (i.e. nazism)

Here now the opinion of the group on these various ideas.

A question which can be raised is as follows: "Are the brakes necessary to the development of humanity? Is the war, with all that it implies, necessary to this development?" It is a rather delicate question; it can’t be said that war is something good but it can’t be denied that it is sometimes necessary. Firstly it is a barrier to the multiplying power of population, which would involve misery and hunger in the world. In the short run perhaps it brought misery but in the long run, perhaps it helped to avoid misery. The problem with the war is the drifts to which it can lead. Fortunately, the man has a certain morals which always prevailed to put an end to the conflicts which afflicted humanity. Also, people need a stimulant in their life. One of the more important stimulants is obviously the natural needs for the body. If the stimulants were removed, the man would not be even able any more to think. The needs for the body help us to reflect, to innovate, which maintains our mental activity. The need and the desire are the spearhead of all human actions. Let us speak now about competition in itself. In the current world, the state of competition really became a way of life; everyone wants to be the first, and only the best ones succeed. Perhaps competition is a bit too high nowadays but one thing is clear, it is necessary because it motivates people. May be it is better that it is present in excess rather than by defect, otherwise that would lead to the sleeping of human spirit. Indeed from time immemorial, it made it allowed the man to exceed his own limit, and thanks to that he did acquire all his knowledge.

Relationship with the trade of engineer.

Everyone knows that many engineers are very quickly up to direct a team, even a company. Indeed, an engineer will have to do a management work, and there is only one step between management and competition, which he will undoubtedly cross very quickly even without realizing it. Even before having its place he will be confronted with competition. Among a choice of candidates, he will have to prove that it is the best and that the company has to choose him. Then the same principle will apply when it will be promoted to a more important job. Also, the bond with the trade of engineer could be of methodological order: indeed, when a scientific task is entrusted to him, he will have to present the best  scientific step, he will have to work with the most valid models. If he wants that the fruits of its research is likely to arrive on the market, he will have to rise among the others, to be distinguished. Moreover, in this branch, there is no place for the chance, all must be calculated, perfectly controlled. It is thus seen that there are especially two types of competition related to the trade of engineer: the hierarchical competition (inside a company or between companies) and the economic competition, which are overlapping one in the other.

Conclusion.

Economic competition can be dangerous if it is led to the extreme. Indeed if the single goal of a company is to have the greatest part of the market, to make the most possible money and to crush the adversaries, competition is seen negatively. On the other hand a competition which remains in the standards is necessary to the correct operation of a company. As mentioned above, the men need stimuli, otherwise they would no goal anymore in the life and they would stop thinking. Competition stimulates the man, it obliges him to think, create, develop. A good example of the positive effect of competition is the development of safety for the car. The company want to create the surest car in order to be in advance compared to its competitors, and that benefits the users. Nevertheless there remains a major problem: according to international competition, the least developed countries are injured and a ditch grows hollow between the rich countries and the poor countries. The ones want a policy of great profit whereas the others want a more social policy. Economic competition is thus an ideal; it is to capitalism what the social equality is to the Socialists. It is a value which is defended more or less according to people's. Finally, it can be said that economic competition is not bad in itself. It is like all things, the way you it will make it have positive effects or negative effects. Coucharière Florent, FSA11, Gr 1122