New economic liberal group in the Lib Dems: A storm brewing for the party?
17 October 2011 19 Comments
Since we formed the Coalition Government there has been a lot of focus on the Lib Dem party with accusations that the party has sold out, that people don’t know what the party stands for anymore and that the Lib Dems will be wiped out at the next General Election. Many in the party have also got worried and the Social Liberal Forum was set up to represent the views of those who felt social liberalism was not being represented. Now we have news of a new grouping representing the views of economic liberals. But are we talking too much to ourselves and not enough to the public making it more likely that the characterisations are seen as true?
The desire to form and join social groups is extremely powerful and built into our nature. Amongst other things groups give us a most valuable gift, our social identity, which contributes to our sense of who we are. Sub groups within a main group can enhance motivation and performance for the main group and as an example the Green Lib Dems or LGBT Lib Dems (DELGA) are important groups within the Lib Dem party.
Just how readily people form and join groups is demonstrated by Tajfel et al. (1971) in the so-called ‘minimal groups paradigm‘. In their study boys who were strangers to each other were given only the slightest hint that they were being split into two groups. Even without knowing or seeing who else was in their group they favoured members of their own group over the others. The formation of the Social Liberal Forum gave a formal voice to certain views within the party which inferred an exclusion of other views; it was therefore almost inevitable that an economic liberal group would then form as a result.
Co-operation within group members is generally not a problem, however co-operation between groups can be very problematic. This is seen frequently by the main political parties. People may be individually co-operative, but once put in a ‘them-and-us’ situation, rapidly become remarkably adversarial.
Insko et al. (2001) had participants playing a classic game called ‘the prisoner’s dilemma‘ which they used to measure competitiveness. When on their own people were competitive 37% of the time but when they were in a group of three this increased to 54%. People easily become suspicious of other groups, reasoning that while their individual members may be ‘alright’, the group as a whole cannot be trusted.
The Green Lib Dems or DELGA have no direct or opposing views in competition with them. They are just seeking to change the people/views around them, which is called minority influence. The difference between these and the formation of social and economic sub-groups is that they are potentially in direct competition with each other. Just have a look at Wikipedia which directly pits them against each other or the publication of ‘Re-inventing the state’ which was published in part as a response to the Orange Book a few years earlier. The formation of these two groups poses potential problems as both are seeking minority influence.
Minority influence is most likely when people can make a clear and consistent case for their point of view. If the minority fluctuates and shows uncertainty, the chance of influence is small. However, a minority that makes a strong, convincing case increases the probability of changing the majority’s beliefs and behaviors. Minority members who are perceived as experts, are high in status, or have benefited the group in the past are also more likely to succeed.
So while both groups will debate and produce new ideas for the party, which is healthy, we may also see both groups pushing repeated and defined ideas/policies and co-opting the big names of the day into their group. This could give rise to unhealthy group dynamics and give a view that the Lib Dems are indeed a split party as the media likes to characterise.
The question that comes to mind is whether their views are overlooked so much by the Lib Dem party that they need to form their own group? And if this is the case, then is this a failure of leadership to represent their views to avoid such formal internal groupings? But considering we now have these groups we need to make sure that unhealthy group dynamics do not begin to form, which is incredibly difficult, just look how other parties have tried: New/Old Labour was damaging to Labour, Pro/Anti Europe within the Conservatives was very damaging to them, One Nation Tory/1922 Committee poses significant problems for Cameron, and Blue Labour had significant resistance within the Labour party. All competing views and groups which was confusing for the voters and ultimately damaging for the party.
The leadership therefore need to manage the different groups well, with frequent communication, listening and airing of views, taking on board their views, making all groups work together and alongside each other to ensure the smooth running of the party as a whole – or we may end up with a repeat of our history.




I see it as a chance to get together and discuss how to implement the merits of economic liberalism and free markets. Social Liberals are not opposed to the concept of markets, and I’m sure many would agree there are areas where more open competition can help bring about greater prosperity. There are two sides to Liberalism, this is a much needed counter-balance to stimulate healthy debate.
Hi James, thanks for the comments and I agree we need healthy debate in the party and I hope this new group brings it. This post just shares some worries and dangers that could emerge if we are not careful.
Ifs buts and coulds!
There’s nothing more to this than meets the eye. We’re just a group of people who believe that the Lib Dems have nothing to fear from embracing what is regarded as an economic strand of liberalism. But it’s not just about that. For me (I can’t speak for others) it’s also an opportunity to widen the debate when we approach liberties issues from Mill’s harm principle. Be it the smoking ban or now the Scottish Party’s adoption of a minimum price per unit on alcohol, we as a party are misdiagnosing the source of problems and justifying intervention of ineffectual kinds.
This doesn’t mean we’re static; far from it. I’d imagine both the as of yet unnamed economic liberal group and the SLF have a pretty broad spectrum of opinion and as Liberal Democrats, there’s less chance of them being monolithic than the USA abolishing their military tomorrow morning.
Debate is healthy.
Hi Graeme, thanks for the comments and I agree with you that debate is healthy and I hope this new group brings healthy debate to the party. My worry is that unintentionally, we create new positions in the party which stretch the party too much. We are already seen as divided and unity is needed now more than ever. If this group forms I would like to see them and the SLF bridge the gap between them with working groups from both sides to keep any potential, and unintentional, conflict between them minimised. I think the reasons for why/how this happens I tries to explain in the post. It is not that I am against it, I just think that we need to be careful – history has a tendency to repeat itself unless lessons are learnt!
I agree with Matthew on this – when you divide a thing it’s never greater than it started (unless it was initially 0, in which case it was never a thing, but a part of a thing).
In an age where the Tories are refashioning themselves to become an economic liberal party, and Labour will probably become a more socially liberal party at some point in the near future, dividing our divided party up further will only exacerbate matters. I don’t have a single vision on these issues and that’s what makes me a Lib Dem – if I thought the free market could run the show I’d be a Tory. If I thought we needed a rule for each and every circumstance, I’d be a member of Labour. I think that the answer is whichever method produces the best outcomes for the system as a whole and its constituents, so I see this move as retroactive for the party.
James Baker says “there are 2 sides to Liberalism”, others are saying there are 4 sides (economic, social, personal, political); I say there are 8 sides! Any advances on the arbitrary division of the party?
@Graeme – RE : Mill’s harm principle – it was from this position that many argued FOR such legislation; and it’s for this reason I’m against these subcommittees. This isn’t the kind of issue that’s particular to economic or social liberalism, it effects us all. I agree that debate is healthy, so why group with people that share the same opinions? There’s already a forum for discussing everything you’ve mentioned, it’s the Lib Dems.
I myself intend to start the Mathematical Liberalism movement, which will consist of all policy being reductive to axiomatic definition with defined framework at all levels. Policy Proofs will be required for anyone to motion anything, our manifesto will read like Godel. We will inevitably split into the measurement, framework and philosophy working committees, at which point we’ll probably realise that we never had much in common, apart from our love of maths and liberalism, which is so obvious we’ll ignore it.
Matthew is right, all of this has happened before, the party as it stands is a result of these arguments and processes, just repeating the past ad infinitum seems like a waste of time, effort and the considerable talents of the members who clearly want to push things forward. On the other hand, it’s going to happen regardless…make a nice cup of tea, sit back and enjoy?
Hi Chris, and thank you. A well put argument, as always. I am making my cup of tea and hoping for the best.
Hey Matthew, what happened to my greater than/less than symbols on the first line? That line’s mathematically wrong now….and you know how much that bugs me.
Hi, maths was never my strong point! Perhaps I should join your mathematical sub grouping in the Lib Dems to learn more about it?
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I also agree that setting up rival factions can be damaging when they are viewed as rivals for the control of the overall party direction, and unfortunately the LibDems must work within a general perception which largely accepts this non-liberal perspective (including a number of people within the party).
My own riposte is that LibDems promote and support the philosophy known as ‘liberal democracy’.
In practise this means accounting for all approaches and finding the ‘propotionate and appropriate’ balance. In other words pluralism.
Although I’m happy to encourage SLF and LV as factions of the internal debate which can develop engagement with members and provide an accessible route into the party for the wider public, I do however disagree that we shouldn’t be cautious about the destabilising and divisive effects of leadership intervention in the internal balance which would prevent them representing the party as a whole – that’s the whole point of having leaders, their job is to be able to rise above disagreements to agree on coherent and effective solutions. Their ability to manage the balance is likely to be a good indicator of the overall success of the party.
Hi Oranjepan, thanks for the comments and thoughts. I agree pluralism is essential and healthy debate is essential for a liberal democracy and particularly the party which promotes it. I am just not convinced that we need these factions – we have a party which represents these views already and lots of places to publish and debate ideas. So why do we need particular groups within the group? I can’t see anything but this being seen as a split party by the public, it will turn people away rather than to the party and could be very destabilising – if not devastating as has happened more than once before – and on each occasion it started not dissimilarly to this.
Hi Matthew,
good points, but I’d split a hair between whether factions are necessary or could potentially be helpful (depending on how they are managed).
The party suffered previously because leading figures became associated with factions (the split between Asquith and Lloyd George is the prime example) as they saw it as a way to build up personal platforms and secure their personal position. However I’d argue the nature of politics has changed since then as national party machinery has grown in importance for campaigning and egos get in the way of electoral success.
So, provided membership of visible internal factions is seen as a hinderance to promotion because of its divisive nature, then the benefits of open access which produces more vibrant and coherent debate are precisely the spur needed to take us through the next stage of growth – because if Clegg wants to anchor the party more firmly in the centre ground then the practise of pluralist debate must be naturally balanced by a pluralist strategy placing groups on the left and right of the traditional scale, and without heavyweights creating volatility by tipping it one way and the other but combining instead to push and lever the party back to the forefront of public debate (ie not right or left, but ‘front and centre’).
Of course there are risks involved, but I’d argue when we are successful undercurrents of this sort have been the reason, and when we are less successful it is because the balance is lost.
I think there is a need to recognise the different conditions under which different principles become relevant – or, to use religious terminology, to avoid fluctuating between monotheistic and atheistic approaches, and apply a celebratory agnosticism which spreads positive messages of hope in all directions. Interestingly I see a similar spread on the god question throughout the party (compare Clegg, Cable and Alexander on the point) which correlates closely with the critique of right and left-wing factions, and this may provide a model to develop the idea as a strategic opportunity.
Secondly, if we’re to be seen as open to coalition from all sides then we must also have internal groups capable of representing all sides.
I suppose I should admit my personal gripe about the way we’ve been shafted by various figures being associated with outside groups directly affiliated with other parties (in particular leading lights who retain connections with, among others, The Fabian Society). The only solution to the widespread public distrust that gives rise to is to establish a framework for debate on our own terms, so that we’re not fighting with various limbs tied permanently behind our own back.
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