Chapter I
The British Disease
A Context since the First Industrial Revolution
It is not fanciful to see an analogy between
Britain at the apogee of her power and Imperial
China. The Mandarins, selected by competitive
examinations in the classics were contemptuous of
science and condemned scientific inquiry as
impious. The rules laid down by Confucius for the
conduct of gentlemen in positions of authority
were inadequate guides in every situation in life.
But the time had come when the Chinese rulers lost
the Mandate of Heaven.[8]
World economies had mutated and expanded several times since the
First Industrial Revolution (1750-1830) when England, as Workshop of the World, reigned
supreme as the Glorious empire, projecting images of its culture from the world's center
of industrial innovation and production.[9] Whereas during the First Industrial Revolution, an in-shop
brand of practical ingenuity could manipulate the variables of coal, iron, and steam with
relative ease, and a simply organized
sweatshop full of illiterate 'hands' and their overseers could produce iron and
cotton goods in a world economy with little competition, the Second Industrial Revolution
(1870-1920) depended on more education-enriched variables: university-trained electrical
and chemical engineers, and corporate managers. America and Germany, the new centers of
this expanding world economy, possessed these variables and proved that a more integrated
approach to research, innovation, and work-organization was the more efficient way to
mass-produce the products in demand: chemicals, combustion engines, electric motors, and
cars.[10] During this period, Germany coined the term British disease
as an explanation for its outperformance of Britain which had only decades earlier guided
development of its [Germany's] first factories.[11] It was Pax Americana,
however, that replaced Pay Britannica, and assumed its mantle as Workshop of the World
using mass production techniques and the new 'visible hand' of corporate management.[12]
Technological revolutions continued in electronics and micro-electronics after the
Second World War, even broader based public education systems and integrated corporate and
work organization had become intrinsic to industrial innovation and global
competitiveness. In this post-industrial world economy, Japan became the Workshop of the
world and Pax Nipponica threatened to replace Pax Americana with its new methods of 'Total
Quality Management' (TQM) and 'Just-In-Time' (JIT) production.[13]
It was during this post-second World War, post-industrial period that Britain
slipped further behind its competitors and diagnosed itself as having the British disease.
By the 1970s and early 1980s -- compared to the U.S., Germany, Japan, and France --
Britain experienced inflation and unemployment rates at least twice as high, and growth
rates (GOP) only half as much as these countries. Britain lost 75% of its 1950 share of
world exports; and wages fell to the lowest in Europe, second only to
Spain.[14] Making matters worse, real increases in
manufacturing-output per worker (particularly in vehicle and electronics production)
declined relative to these countries--especially compared to Germany and Japan, whose
output per worker was two to four times as high.[15] compounding this drop in
manufacturing output (and at the heart of the British disease) was an increasingly
dysfunctional, antagonistic form of industrial relations which culminated in the winter of
1979, popularly known as the 'winter of discontent.' 'That year,' wrote a popular
British business historian,
'continued to convince us that industrial relations were at the heart of the British
disease.'[16] During this 'shameful year' even hospitals were paralyzed by
strikes.
Popular consciousness of the British disease, and the corresponding critique on
British culture and institutions related to industrial relations, reached its highest
level during the late 1970s and early 1980s.[17] Books and articles on the subject sought to identify its cultural and historical
roots which they argued would require cures, or models, imported from abroad.[18] British
diagnosticians perceived their country's 'proneness for industrial conflict,' 'management
incompetence,' and manufacturing underperformance as stemming from mid-nineteenth century
intellectual traditions and institutions of the Glorious Empire. Correlli Barnett, a
popular historian of British decline, wrote in 1975, 'the English disease is not the
novelty of the past ten or twenty years . . . but a phenomenon dating back more than a
century.'[19]
Intellectual trends after the French Revolution
Critics contended that
the roots of the illness lie in the Victorian self-righteous philosophies and
liberal economic theories that helped develop harmful educational institutions and social
relations. Protestant Christian tenets of 'predestination' and 'original sin' inclined
people to assign responsibility for one's moral and economic condition to the individual
alone.[20] Thomas Malthus's (1766-1834) theory on 'population equilibrium, '
and David Ricardo's (1772-1823) 'iron wage law' supported a biblical contention that 'the
poor will always be with us.' Adam Smith's (1723-1790) laissez faire and Jeremy Bentham's
(1748-1832) utilitarian liberal economic theories justified as little state action as
possible. Social Darwinism convinced many that the long hours and filthy working
conditions in the factories served the evolution of the human species.[21]
Britain's industrial success further reinforced acceptance of these
'dismal' theories and led the elite of every political persuasion (except a few
Quakers) to believe in the apparent inevitability of class conflict and the
irreconcilability between the 'dirty' industrial,
'material' and the 'pure' classical, 'spiritual' realms.
The literary and artistic movements of the early nineteenth century reflected and
reinforced these elite philosophies. The books of Thomas Carlyle (1795-1881) , from The
French Revolution to Past and Present, exemplified well the evolution of early
nineteenth century elite thought--from conservative pessimism toward the democratic tenets
of the French Revolution, to disgust with things industrial (i.e., 'Mamonism' and the
'cash nexus'), and the call to hold on to traditions like ancient religious orders and
'the land.' The works of Samuel Taylor Coleridge (1772-1834) , John Ruskin
(l819-1900) , and Charles Dickens (1812-l870) followed a similar course; and, although
Karl Marx (l818-1883) did not advocate retreat to tradition, he was just as
conservative as most others among the elite in his contention that the abhorrent working
conditions and developing class differences were natural and inherently antagonistic.
Industry and factory life in particular, came to represent an evil zone where the
antagonistic spaces of labor and capital struggled in conflict. Many referred to the
factories as 'satanic mills' that robbed the humanity from civilization.
The Luddites simply destroyed the 'evil' machines, while Marx and Ruskin were sure
that factories would alienate workers from the product and produce increasingly
intolerable conditions until workers would be forced to organize a revolution' Because
capital, or ownership and their managers, were not expected to be socially responsible or
morally obligated toward labor, even new technology was viewed as capital's rightful tool
to exploit labor in the 'zero-sum,' 'win-lose' game of production. As late as the
1970s, a predominant view was still that industrialization would slowly 'de-skill'
employees in the inevitable 'labor process' of capital making production more efficient.[22]
Such assumptions affected the passage of labor legislation throughout the twentieth
century. whereas other industrializing countries (Germany and Japan in particular) sought
to establish more cooperative relations between capital and labor to avoid the dreaded
strike, in Britain, the right to strike, formal or informal, continued to be a stalwart
feature of industrial relations policy. 'Collective bargaining' between the ' inherently
antagonistic' moral spaces of the zero-sum game remained a given until the Japanese model
offered an alternative image of an encompassing moral space (the 'firm as
community') in the 1980s.
Institutional trends in public education
The British public education system in
the nineteenth and early twentieth centuries developed concurrently with binary
intellectual trends and helped further define the antagonistic spaces of the 'dirty, '
'applied' scientific/industrial and the 'pure, ' 'theoretical, ' literary. At one extreme,
early nineteenth century education for the working classes in charity schools and
Mechanics' Institutes lacked reading because it was thought that teaching writing to the
'inherently lazy' would produce in him a distaste for work. Allistair Mant, a scholar on
British management, quoted one early-nineteenth century educator, that the teaching of
writing to the working classes was thought to be counterproductive because it 'might
produce in him a disrelish for the laborious occupations of life.'[23] Similar
observations were found in an 1861 Royal Commission Report which stated that a large
proportion of the students coming out of popular (state-supported) elementary schools
could barely read.[24] Because children were an integral part of British
manufacturing at this time, public education theorists believed that education
for the masses should be based on industrial utility alone.
At the other extreme, Public (fee-based) schools for the elite--from the Clarendon
nine (Harrow, Winchester, Eton, Rugby, etc.) to the colleges of Oxford and Cambridge"
were devoid of any technical training, or 'applied' science, because headmasters thought
these subjects to be antithetical to the 'pure' classical learning of Greek and Roman
literature. Indeed, one of the classics, Plato's Republic, justified such
divisions in its advocacy of a 'purely' philosophic education for the elite ruling
(Guardian) class, versus a menial education for the working class. Thomas Arnold
(l795-1842) and John Henry Newman (1801-l890) , two leading spokesmen for the Public
schools in the mid-19th century, helped win the debate for the expansion of the
elite public schools and 'pure' learning. critics were fond of quoting Arnold:
Rather than have science the principal thing in my
son's mind, I would gladly have him think the sun
went round the earth, and that the stars were so
many spangles set in the bright blue
firmament. [25]
An excerpt from one of Newman's speeches as well reflected the development of two tracks for education:
You see then, Gentlemen, here are two methods of
education,. the one aspires to be philosophical,
the other mechanical,. the one rises towards ideas,
the other is exhausted upon what is particular and
external. [26]
Increasingly convinced that academic
opposites reflected apparent social corollaries, the British elite became less concerned
with innovation as Workshop of the world, and more concerned with their mission as
'civilizer, ' or 'Britannicizer' of the world.[27] The effect,
critics contended, was a civilizing of the 'industrial spirit' and a 'gentrification' of
the industrialist. This was the thesis of Martin Wiener (1981), and it was also implicit
in every other book on British decline critical of the growing aversion to industry and
the 'cult of the amateur' in the workplace where university-trained engineers were viewed
with contempt.[28]
The assumed moral superiority of studying Greek and Roman classics and playing
organized sports must have seemed appropriate in a Glorious Empire in need of
administrators; but as the nineteenth century progressed, the 'pure' track appealed
to the industrialists as well. They sent their children to these boarding schools to rise
above their 'inferior' occupational status and one day become part of the gentry. This
aversion among the Public schools for technical studies was the one likened to the
condition of education in china at the turn of the century in which Chinese educators
deemed the Confucian classics superior to science-related studies.
Despite numerous official reports warning of Britain's technical vulnerability,
business management studies and engineering never developed into specialized disciplines
at the university level to the degree they did in France, Germany, Japan, and the U.S.[29] Britain's
'best and brightest' continued to prefer the classical literary education track leading to
Oxford and Cambridge, and a civil service job; and, only if all else failed, a
high level management position in industry. A 1929 report by the Balfour Committee on
Industry and Trade reflected the concern, but also the powerlessness of government
officials faced with the general lack of support for science education initiatives:
The available information makes it clear that the
present response of industrial and commercial
enterprises to the educational efforts made to
train candidates for entry into the higher grades
of these organizations is much less certain and
widespread than in certain countries, e.g.,
Germany and the United States.[30]
Critics maintained that because most
government officials had deficient backgrounds in science themselves, policy-making was
doomed to be misguided and ineffective. Similarly, upper-level managers in industry,
'gentrified' in the elite schools, were increasingly ineffective at managing
innovation in their companies.
The rare management specialists and engineers who did find education programs and a
place in industry often found that labor did not respect their education anyway because of
the persistent ideal of the 'practical man' educated on the shop-floor.[31] Critics
maintained that these trends,
reinforced by the complacency induced by Britain's victory in the Second World War,
accounted for the deficit in engineers and
technically-trained managers into the postwar period.[32]Although
the Education Acts of 1870, 1902, and 1944 expanded education for more children and
adolescents, their delegation of technical education to the non-university track
reinforced the association of technical studies with the low-status 'blue-collar' versus
the literary 'white
collar' occupation groups.[33] It was not until the Labour-initiated comprehensive school
movement of the 1960s that reformers sought to abolish these traditional divisions
incrementally over the course of a decade. This effort, however, provided no quick fix for
Britain's industrial and economic ills and would later be blamed for the troubles by
successive conservative governments in the 1980s and early 1990s. Some critics
argued that the ineffectiveness of the
comprehensive schools lay in their failure to 'democratize' the A-level college entry exam
preparation which remained the monopoly of independent (fee-based) schools.[34] As the
comprehensive schools came under increasing fire and independent schools
gained credit for 'maintaining high standards, ' George Cyril Allen lamented in
1976 that
England is [still] unique in possessing two
entirely distinct systems of education from
childhood upwards. Nowhere else are the children
from different social groups kept so rigidly apart
throughout their school life.[35]
Allen's convictions regarding the significance of the public schools in socializing traditional social classes dated back to a trip he made to Japan in the 1920s when he observed that
. . . although [the schools] did not then claim to
be democratic, children from all classes attended
the same primary school. A Japanese friend was
surprised that I should have found this a matter
for remark' Though he was well-to-do, he thought
it natural that the people who were now his
servants and the local farm workers should have
attended the same primary schools as he.[36]
Although Allen's observations may exaggerate the egalitarianism of the public education system in Japan at this time (for they had their Eton and Rugby elite higher middle school equivalents) , it was true that, unlike England (which segregated education from the start) , the Meiji and Taisho elementary schools were comprehensive and in theory everyone began with equal privileges.[37] In his concluding chapter on The British Disease, "The Solution: Deep-seated Adaption to Industrial Society," Allen again raises the issue of elementary schools as a factor to be considered in the search for foreign models:
The absence of a common system of primary
education must bear much of the blame and here a
foreign example is to be commended. A
satisfactory remedy cannot he found by way of
compulsion, and parental choice should not be
fettered. Perhaps one must keep content with
hopes for a gradual erosion of older social
attitudes and a continuous improvement in the
standards of the state primary schools.[38]
Britain and Japan's different institutional
histories in the public education and their internal operations were an important part of
a matrix of factors that developed two different systems of management and management
education, and is the subject for discussion in chapter four.
The British disease can be summarized, then, as a growing popular awareness of the
significance of intellectual and institutional trends wrought during mid-nineteenth
century Victorian England which, according to the persuasive camp of Allen, Barnett, and
Wiener, solidified the intellectual aversion toward technical studies and reinforced class
conflict, especially through the school system. In this context, the profession of
management in Britain grew increasingly incompetent, due to its lack of technical
qualifications, and industrial relations became increasingly divisive and dysfunctional.
Although this diagnosis received a substantial rebuttal in the early 1990s, since Britain's economy had improved, the thesis is
concerned with the critique's effect on reform efforts
which sought to overcome the disease.[39] The formulation of the
concept of the British disease was a necessary preface to instituting far reaching
institutional reforms and instigating a shift in attitudes developed during the days of
the Glorious Empire. The remainder of the thesis will be seek to discern the particular
reform efforts since the second World War as Conservative officials and the 'captains of
industry' sought out foreign models to cure their post industrial ills.
ENDNOTES
[8] George Cyri1 Allen, The British Disease: A Short Essay on the Nature and Causes of the Nation's Lagging Wealth, (London: Institute of Economic Affairs. 1976) , p.50.[back to text]
[9] I use the term 'world economy' in the tradition of
Andre Gunder-Franke, "The World Economic system in Asia Before European
Hegemony," The Historian 56(2), (1994: 260-276. Gunder-Franke viewed world
economies as multi-centered and dynamic throughout world history, in contrast to Emmanuel
Wallerstein, The Modern World System: Capitalist Agriculture and The Origins of the
European World-Economy in the Sixteenth Century
(New York: Academic press Inc., 1979) who sees it as a uniquely European development.[back to text]
[10] The best overviews of the technological and educational imperatives between the First and Second Industrial Revolutions are David S. Landes, Prometheus Unbound: Technological Change and Industrial Development in Western Europe from 1750 to the Present (Cambridge: Cambridge U.P., 1969) 1-358; and Robert A. Locke, The End of Practical Man: Entrepreneurship and Higher Education in Germany, France, and Great Britain, 1880-1940 (Cambridge.' Cambridge U.P., 1989).[back to text]
[11] For British
industrial consultants in Germany, see Landes 1969. Peter Lawrence provided information on
German coinage of the term 'British disease' in an interview at Loughborough University,
20 January 1995, Loughborough, Leicestershire England.
For German 'dismay,' or
schadenfreude, over British underperformance, see Allen 1976: 15.[back to text]
[12] Alfred Chandler Jr., The Visible Hand: Managerial Revolution in American Business (Boston: Harvard U.P., 1977).[back to text]
[13] For an in-depth analysis of this transformation from craft production and mass production, to Japanese 'lean production' (TQM and JIT) see James P. Womack, Daniel T. Jones, and Daniel T. Jones in the book The Machine that Changed the World (New York: Macmillan, 1990). This influential book is based on a five year, five million dollar MIT study.[back to text]
[14] Statistics compiled in David Coates, The Question of U.K. Decline: State, Society, and Economy (London: Harvester, 1994), p.6.[back to text]
[15] Ibid. Statistics compare percentage of change in output per worker in a variety of time spans since 1960.[back to text]
[16] P.D. Anthony, The Foundation of Management (London: Tavistock Publications, 1986) , p.12.[back to text]
[17] During my travels
around England (15 January - 13 February 1995) I found the people over the age of thirty
whom I met were able to associate a variety of connotations with
the 'disease': 'labor problem,' 'incompetent management, ' and 'apathy.' Although
one can not generalize from such a small sample, these informal definitions at least
supplement the
1993 Oxford English Dictionary definition of the 'disease' as "a problem or failing
supposed to be characteristically British, especially proneness to industrial
conflict." (The 'disease' had not made it into the preceding 1971 edition of the
dictionary.)[back to text]
[18] Allen 1976; Louis
Leonard Brown, The British Disease (London: copyrighted pamphlet, 1982); James
Allen Chatterton and Ray Leonard, How to Avoid the British Disease: Industry in
The Eighties (London: Northgate Publishing, 1979); Correlli Barnett, The Collapse
of British Power (Gloucester: Alan Sutton Publishing, 1984); Alistair Mant, The
Rise and Fall of the British Manager (London: Macmillan Press Ltd., 1977); M.
Mathieson and G. Bernbaum, "The British Disease: a British Tradition," British
Journal of Educational Studies 26(2)
(1988), pp.l26-74,. Maureen Tominson, The English Sickness: The Rise of Trade
Union Political Power (London: C. Tinling and Co. Ltd., l972).[back
to text]
[19] Correlli Barnett, "Obsolescence and Dr. Arnold," Sunday Telegraph 26 January 1975, cited in Martin Wiener, English Culture and the Decline of the Industrial Spirit, 1850-1980(Cambridge: Cambridge U.P., 1981). Although Martin Wiener is an American, his book on British decline became the most debated thesis on the 'British disease' in Britain during the 1980s. The best critique of Wiener and the 'British disease' genre of the 1970s and 1980s is W.D. Rubinstein, Capitalism, Culture and Decline in Britain: 1750-1990 (London: Routledge, 1993).[back to text]
[20] It should be noted
that there were as many or more elements of Protestantism which complemented
industrialism. While notions of 'predestination' and 'original sin' may have
contributed toward mistrust, it also may have contributed toward reinvestment of capital
to prove one's destiny for a better world. This is the thesis of the classic by Max Weber,
The Protestant Ethic and the Rise of Capitalism (1958). For a brief discussion of
the anti-capitalist prospects of Protestantism see Manuel Wallerstein 1974: 152.[back to text]
[21] For a readable intellectual history of the period, see David Churchill Somervell, English Thought in the Nineteenth Century (London: Methuen and Co. Ltd., 1929).[back to text]
[22] The 'labor process' thesis is best represented by H. Braverman, Labor and Monopoly Capital (New York: Monthly Review press, l974).[back to text]
[23] Mant 1977: 24.[back to text]
[24] Corel1i Barnett, The Audit of War: The Illusion and Reality of Britain as a Great Nation(London: Macmillan, 1986).[back to text]
[25] T. Arnold and A.P. Stanley, The Life and Correspondence of Thomas Arnold (London: John Murray, 1877) p.32, cited in Mathieson and Bernbaum, "The British Disease: British Tradition?," p.140-41. See also Barnett 1986: 214; Mant 1977: 24.[back to text]
[26] From a speech in 1852, quoted in Sanderson, The Universities of the Nineteenth Century (London: Routledge and Kegan Paul, 1975), pp.123-4, cited in Barnett 1986: 213.[back to text]
[27] The 1931 edition of the Oxford English Dictionary includes 'Britannicize,' 'to make Britannic or British in character, ex. , 'Americans are Britannicized Indians. [back to text]
[28] Martin wiener's
thesis was part of 'the received wisdom interpreting recent British history and our
prospects for the future, ' according to New Society (17 November, 1983:
274). It received two successive hours on Monday night prime time television, was 'given
the approval and blessing' of authorities in the whole political spectrum. Anthony
1986: 14;
see also, Locke 1985.[back to text]
[29] In particular the Ecole Centrale des Arts et Manufactures of Paris, France; the Polytechnic of Zurich, Switzerland; the numerous Technischehochschulen and Handelshochschulen in Germany; the University of Commerce (currently, Hitotsubashi) and related colleges in Japan, and in the United States, the Harvard School of Business and MIT (ironically modeled on a British technical college). Allen 1976: 41:7.[back to text]
[30] Cmd 328: Final Report of the Committee on Industry and Trade 1928-1929 (p.23l), cited in Barnett 1986: 212.[back to text]
[31] Allen 1976; Robert Locke 1985,. and Locke, Management and Higher Education Since 1940(Cambridge: Cambridge U.P., 1989), pp.176-98.[back to text]
[32] As late as 1978, Britain was only graduating 1,200 engineers per year compared to Japan's 70,000. Coates 1994: 140.[back to text]
[33] David Rubinstein and Brian Simon, The Evolution of the Comprehensive School, 1926-1966 (London: Routledge, 1966), pp.1-32.[back to text]
[34] Locke 1989: 196-8; see also, Anthony Sampson, Changing Anatomy of Britain (New York, 1984).[back to text]
[35] Allen 1976: 67-8.[back to text]
[36] Ibid., p.68.[back to text]
[37] For an analysis of the higher middle schools see, Donald T. Roden, Schooldays in Imperial Japan: A Study in the Culture of a Student Elite (Berkeley: University of California Press, 1980).[back to text]
[38] Allen 1976: 74-5.[back to text]
[39] One of the common rebuttals is that British decline was regionally specific, and British continued to have the highest share of Nobel prize winners for scientific discoveries, thereby repudiating the cultural 'aversion' to technical studies. Rubinstein 1993.[back to text]