Europe: the Federated States of Catataxia

Catataxis means level confusion and the Eurozone crisis is a catataxic one. I will explain the problem with the state(s) of Europe in a moment, but first a little bit more background about the state of catataxia.

When things start to get bigger, sooner or later a certain point arises when there is a discontinuity. Getting past that requires a transformation in structure or organization. To get to the next level, something more than just size must change. Think of the biggest insect in the world. It will not be more than a foot long. Those giant ants towering over houses in 50’s sci fi movies are a physical impossibility. A creature with an exoskeleton reaches a physical limit to growth. There comes a time when the muscles required to move the external carapace get so big they can not be contained inside that carapace. Think of an enormously fat knight; his armour is so heavy he can no longer lift it. So in order for an ant to grow to be the size of an elephant, he has to cease to be an ant. His body form must be reorganized. His exoskeleton needs to be replaced by an exoskeleton. Mammals have endoskeletons: internal bones not external shells. Mammals range in size from a tiny shrew to a gigantic blue whale. That “exo to endoskeleton ” transformation marks a catataxic boundary: a discontinuity in a smooth linear expansion. A necessary reorganisation before further growth can continue.

Hence, the catataxic maxim “more of the same is different”. Let’s look at a corporate example instead of a biological one. A common cause of failure amongst small companies is not that that they fail to adapt when things are going badly but when things are going well. Sudden rapid growth can be just as dangerous as a declining market. As they expand quickly to become a big company they face a number of complicated hurdles, mostly to do with internal organisation. They must develop more robust systems in HR, admin, compliance and legal. They must navigate through a deadly miasma of corporate structure and org charts. This is the equivalent of the “exo to endo” transformation: the ant becoming the elephant. To most employees, this pointless bureaucracy and red tape is a big dead weight; sapping energy, crippling natural agility and dragging down performance. It is true that an ant can perform prodigious feats. Insects can carry many times their own weight or jump many times their own height. An elephant can’t jump at all, but it is BIG and that brings many different benefits.

Let’s look at a social example. When two or three people go out to dinner in a restaurant it is quite easy to settle the bill: just split it down the middle. But with 12 people there, suddenly the argument is all about who had the lobster to start with and how much wine did Jimmy drink. More of the same is different. It’s hard for a big group of people to pay the bill. Often its best to appeal to a higher authority: someone picks up the tab and takes a chance by sticking it on his corporate credit card. That way some higher level corporate entity can sort it out.

And so back to Europe. Everyone agrees that there should be a bailout for the Eurozone but no one wants to pay the bill. There is no leadership and no one to take charge because they can’t. There is no institution big or powerful enough to deal with it… yet. In Europe, we are privileged enough to be watching the ant turn into an elephant before our very eyes. Yes, this will require upheavals, reorganisations and much red tape. In the end, the Federated States of Europe will emerge. This lumbering, dull witted mastodon, much mocked and stung by the agile insects around it but big enough to crush them without even noticing.

The press has delighted in pointing out that the Groupe de Francfort, the eight public figures including Merkel and Sarkozy that are attempting to lead the response to the Eurozone crisis, are largely unelected and therefore have no democratic legitimacy. But then again, no one lauds a catataxic transformation. Have you ever heard a front office employee praise a corporate decision to double the number admin staff and increase red tape. This transformation is happening because it is an inevitable consequence of scale. Globalisation has made the existing structures redundant or unfit for purpose, and new institutions must replace them. It is a naturally emergent phenomenon driven by the environment, like a high tide or a wildebeest migration.

The ant must turn into an elephant. The Groupe de Francfort is its emergent head. A catataxic boundary must be crossed. It is a necessary transformation before growth can continue.

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