Category: Democracy

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A chronicle of deaths foretold.

On Wednesday May 5 there was a general strike in Greece. It was much publicised and anticipated, with posters hung throughout Athens in the week before calling for a day of “action” in protest against the IMF/European Central Bank austerity regime required for the approval of US$141 billion in bridge loans to the financially beleaguered Greek government. The general strike was called for the day the Greek parliament, controlled by the ruling PASOK (nominally centre-left) party, would vote on the financial rescue package. Athens was therefore the epicenter and focal point of the day of ‘action.” In Greek political parlance a day of “action” means a day of ritualised and raw violence against the status quo. Everyone knows this and prepares accordingly. The transportation workers were kind enough to delay joining the strike until 11 AM (with a return to work at 5PM) so as to accommodate the needs of the demonstrators looking to head downtown (ticket monitors declined to enforce paid passage on the day).

For unions and other disgruntled groups the strike meant preparation of their cadres and organisation of their marching columns, to include stockpiling improvised weapons and going over marching discipline. On the day itself communist (KKE) party-affiliated unions manned the perimeter of their columns with large tough men, since the columns include pensioners and families while unaffiliated provocateurs attempt to infiltrate the ranks (see below). The toughs move to the front of the column once the destination of the protest is reached (in this case, Parliament), where they provide a buffer between the security forces and the leadership while the support masses supply voice, placards, medical aid and replacements for the front line stalwarts.

Other counter-hegemonic factions, particularly anarchist groups and Marxist-Leninist militants such as those in the “Revolutionary Uprising” group, organise more furtively. Unwelcome by the KKE unionists and virtually all other protest groups, these radical elements trail the larger union columns wearing hoods and tear gas masks while carrying pavement stones and petrol bombs. Comprised less of proletarians and more of disgruntled middle class and unemployed youth, they organise into small group cells so as to infiltrate the rear of the union columns where the KKE toughs are less visible, and they use the shelter of the larger columns to stage hit and run attacks on symbols of government or capitalist authority. Their actions are not coordinated with the KKE or other groups, and are designed to inflame the situation so as to provoke a violent police response and wide spread chaos.

On the day of the general strike tens of thousands of demonstrators descended on the Syntagma (Constitution) square outside of Parliament. The unions intended to disrupt the vote by storming parliament. The riot police understood this and protected the building. Other groups filled the square in support for the union vanguard, and by noon there were full-frontal clashes between demonstrators and riot police on the parliament steps. These clashes were remarkable for their restraint–the demonstrators threw small stones and an assortment of wooden objects, plastic water bottles and other light projectiles while grappling with the police over their riot shields. The police responded by episodically using hand-held tear gas dispersal units (rather than grenades) at close quarters when the mob threatened to overwhelm a point in the police line. In sum, there was much shouting, pushing and shoving but it was all rather stylised and everyone made their point (it is widely believed that the Police and unions have an understanding about how these demonstrations should proceed, particularly under PASOK governments).

All of that changed at 1:30PM when hooded youths firebombed a branch of the Marfin Egnatia Bank a few blocks from the square. Located in a century old building lacking fire escapes, the bank branch was shuttered but its door left unlocked because its employees had been ordered to work in spite of the strike (leaves were apparently cancelled or not taken). Of the twenty employees inside the branch when the firebombs came through the door, three died of smoke inhalation as they scrambled up a stairwell to escape the toxic fumes of the burning bank lobby. The others were rescued from second floor balconies as smoke billowed from the windows and doors behind them. The rioters on the street below prevented would-be rescuers from entering the front entrance and pelted arriving firefighting units with rocks and Molotov’s. Among the dead was a pregnant first time mother.

The deaths of three innocent Greeks cast a pall on the country. Everyone, politicians and unionists alike, agreed that storming parliament was fair game, but murder was not. The hunt is now on for the perpetrators, who escaped, and the blame game is in full swing.

The government blames the anarchists and other usual “agitators.” Most of the country appears to agree with this view because the bank bombing was part of a larger orgy of violence in which private vehicles, storefronts, media vans and assorted other private property and government offices were stoned, torched or otherwise vandalised. The KKE and most of the union movement chose to blame government policies and its kowtowing to foreign financial interests for setting ther stage for the tragedy. Others blame the bank workers for not shuttering the front door once the mob on the street outside morphed from a well organised column into random groupings of armed youth. Others blame local government regulations that allow the use of old buildings for housing and commercial purposes without fire prevention or escape retrofits. But so far one culprit has remained unscathed by criticism–the bank itself.

Marfim Egnatia Bank is the largest majority Greek owned bank. It controls the Greek Investment Bank and has stakes in a number of commercial enterprises including the likes of Olympic Airways. It borrows heavily from foreign financial institutions in order to maintain and expand its commercial presence. Its Board of Directors is entirely Greek. And yet this bank ordered its workers in downtown Athens to report to work on a day when all of Greece knew that it would become a low intensity conflict zone. No banking business was (or could have been) done at that branch on May 5. But 20 workers, clerical staff and branch management alike, were told to effectively risk their lives and keep ther front door open as a sign that Marfin Egnatia supported the government decision to accept the terms of the bailout and as a symbol of rejection of the general strike. But it was not the Board of Directors or upper management who were going to make that stand. Instead it t was the retail (mostly female) foot soldiers who were made to face the much anticipated wrath of the disaffected children of the bourgeoisie, unemployed working class and assorted lumpenproletarians.

That, in a nutshell, is the problem of Greece. An utterly contemptuous corporate (often hereditary) elite that indulges the political classes and orchestrates oligopolistic control of the national economy from the comfort and safety of the Athenian north and western far suburbs. An elite that weekends in the islands and watches the strikes on TV. An elite that will, by all measures, be singularly unaccountable or untroubled by the austerity regime now imposed on their fellow citizens.

Their disgrace is paralleled by that of the murderous hooded street thugs who enjoy violence for violence sake, and who take advantage of the Greek indulgence of ritualised confrontation to pursue their anti-social agendas, agendas that have zero political purpose other than to demonstrate contempt for the status quo. Both the Marfin Egnatia Bank bosses and the hooded street thugs who threw the firebombs into the bank knew that innocent, working people were being placed in the line of fire.  And in both cases, they simply did not care.  In their contempt for others, it turns out that  Greek elites and street cretins are alike.

That is why the deaths on May 5 were so quintessentially Hellenic: avoidable, unnecessary, preventable, pointless and yet palpable as well as inevitable.

PS: For those interested in English language news coverage of Greece, check out www.ekathimerini.com (but be aware that it has a right-centre orientation).

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All’s fair, even when it’s unfair

As much as it pains me to say it — having long hoped against hope for the illusory Liberal Democrat rally which would see the Conservative party locked out of the British government for another five years — on reflection, I think the result of Thursday’s election in the UK was a reasonably fair one.

That’s a bizarre thing to say for a bunch of reasons, so let me explain. I don’t mean it’s fair in the sense that the views of the electorate were adequately reflected. Hundreds were turned away from polling stations or otherwise prevented from voting, but that pales into irrelevance compared to the fact that somewhere north of 40% of electors who did manage to cast their votes legitimately had no influence whatsoever on the makeup of the parliament. Spare a thought for the 15,903 Lib Dem voters of Camborne & Redruth, whose incumbent candidate lost by just 66 to the local Tory. It’s certainly not fair to the “Celtic fringe” and other minor parties whose candidates were excluded from the main electioneering set-pieces. I’m frequently on record saying that politics isn’t fair, and it isn’t — you don’t get out what you put in, there are no guarantees and sometimes the righteous are not rewarded nor the wicked punished. But from time to time, despite its unfairness, democratic politics does cast a thin, pale shadow of justice, and this is just such a time.

The Labour party betrayed the trust of its electorate in myriad ways. Most egregiously by blindly backing Bush rather than undertaking its own due diligence on the Iraq war; more insidiously by quickening the pace of Britain’s march toward a surveillance state; and most materially by claiming to represent the caring face of modern compassionate capitalism while permitting the barons of the banking industry to make out like bandits to everyone else’s cost. The handover from Blair to Brown was slickly managed but its slickness betokened a deep rot within: a reluctance inside the party to interrogate and dispute and disagree on crucial matters of policy and principle. The absence of any such critical engagement with the big issues of our time during a period when those issues were front-and-centre for the first time in a generation was clear in that nobody challenged Brown, even for show — and it was evident in Brown when he spoke to the electorate. He was a leader who had been given his place; he had not earned it, and it showed. New Labour was deservedly rejected for their performance over the past three terms, and I do not rue its loss greatly.

The Conservatives, on the other hand, were little more deserving. Cameron is unashamedly Blair-like, even describing himself as Blair’s heir. But although early in his leadership he has more characteristics of the later Blair, lacking much of the political verve which marked Blair’s inspirational early career. He is a self-declared moderate, which seems to mean he doesn’t really believe much of anything; he claims to be a “compassionate conservative” but speaks fondly of Thatcher. He derides parliamentary politics as a circus — which, to me, is an indicator of authoritarian managerialism, the preference to stitch up faits-accompli in smoke-filled rooms rather than submit ideas and policy programmes to the chaos of public dispute and scrutiny. For all that, he is an extremely intelligent and politically astute man; his former Oxford tutor speaking of him with surprisingly high regard during the BBC election broadcast. He is in some of these regards deeply reminiscent of our own Prime Minister. His party, however, do not seem to be of this standard; certainly not in terms of ability, and certainly not in terms of ideas. They struggled to keep pace with an ideologically bankrupt Labour party throughout the campaign and preceding term, no doubt just thanking their lucky stars that they were not having to make any of the hard decisions throughout the financial crisis. They were deservedly kept from securing government on their own, although they probably consider that they’ve been robbed, given how deeply loathed Brown and his Labour party are.

But the Liberal Democrats were robbed, although not so much as comparing their share of vote to their share of seats might suggest. They were much less to blame than either of the other two parties for abusing their expenses, and have proposed a much more thorough programme of economic and social reforms to present to an electorate clearly displeased with the tired and mediocre offerings of the mainstream. In a loose moral sense, they deserved more than they got from this election, not simply on the numbers but on the basis of their performance. But they were also the architects of their own misfortune to some extent. They unselfconsciously tried to drive a “sensible moderate” path between two parties whose electoral programmes were positively defined by stultifying sameness and a refusal to commit to anything which might make a blind bit of difference. There was too small a space between those two for anything to properly bloom. They targeted the young, immigrants, and the otherwise marginalised for votes — groups who might respond to polls, but never really turn out on election day. Clegg also played with best-of-both-worlds populism, and his “I agree with Nick” slogan is now being cruelly mocked — as it perhaps always would, given that not even the most generous projections had them winning more than an eighth of seats.

Nick Clegg and the Liberal Democrats hold an ace, and that is proportional representation. Now Labour, which has long had the political capital to implement a proportional system but has consistently chosen not to even consider it, declares itself in support of electoral reform. Blair, for all the great things he did in his first term, could potentially have saved his hapless successor’s — and his party’s — hides in this election by starting the PR reforms when he could act with impunity. I hope he regrets the decision not to. Even David Cameron, an avowed opponent of PR and representing a party with a deep, even tribal opposition to such measures, now claims to support “reform of the political system”, though — remaining true to form — he has been carefully circumspect on what he actually means by that. I reckon he means “make sure all the polling stations have enough ballot papers”, which is admittedly a good start. But PR is the only way to end the electoral corpulence of the two major parties; while they remain insulated from the challenges of lesser parties there will be no genuine improvement.

So the Liberal Democrats have to go for bust to get proportional representation, now. That, paradoxically, means supporting the Tories to the minimal extent necessary, in the classic sort of compromise that leaves neither party happy. (Though it does mean that the Lib Dems must rebuff as much of Cameron’s “big, open and comprehensive” coalition deal as they can get away with.) For all that it seems, on paper, like a wonderful idea for the Liberal Democrats to give Labour the chance to build a coalition out of the the minor parties — everyone except Sinn Féin and the DUP would be needed — such a course of action would lead to proportional representation being robustly rejected by the British electorate. To stitch together all of these competing interests and Quixotic crusades into a cooperative which can agree on a seating plan, let alone draft constitutional reforms as important as devolution wast would require a bona fide political genius. Gordon Brown is not that genius, and nor is Nick Clegg. If such a person existed in Britain at present, he would probably be the leader of a very much more substantial majority in the House of Commons already. The inevitable, catastrophic failure of such a merry band of jokers would paint for the British people the worst possible picture of what proportional representation parliaments would look like, at the worst possible time, and would leave the Tories free to simply sit on the sidelines and shake their heads knowingly. For all that it’s a self-serving platitude to excuse a deeply undemocratic system, “strong, stable government” really is quite useful during times of such deep economic crisis. Not only would these events drive the electorate into the arms of the Conservative party (who would not even need to change their slogan), but it would sink any chances of PR being adopted for a generation or more. On the other hand, to force the Conservatives to permit even a discussion about PR could grant Labour a new lease on life. Once it’s cut away the extensive dead wood, the party would be in a strong position to stand against the nay-saying Tories trying — and likely failing — to limit their exposure to the public’s will and to make a decent fist of their time in government (in that order of priority).

Probably the most memorable quote for me from this election coverage was “the voters have spoken: we just don’t know what they’ve said”. Well, it seems to me that what they’ve said is “screw the lot of you”, with the perhaps unspoken exhortation to “sort your bloody act out”. I hope that’s the message received. That means the death of expressionless, gutless managerialism in politics, and it means a genuine engagement with the electorate on electoral reform. Neither can come soon enough.

L

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MMP in NZ is safe

shirtcliffe ad
Evidence:

  • It has been found to work pretty well and all parliamentary parties except ACT support it.
  • The UK election is about to remind people how perverse FPP is.
  • Peter Shirtcliffe is spamming people in order to gain support for his anti-MMP campaign.
  • His google ad campaign looks like this ====>

Seriously. That’s him. A ranting white middle-aged elderly patrician of the sort New Zealand’s governments were almost exclusively composed before the change in electoral system — and on a soap-box, for goodness’ sake. A starker warning of what’s in store should the electoral system change is hard to envisage. Also: it’s visually busy and garish. The blue is neither National-party royal blue, nor ACT-party aqua-blue, nor flag-Navy; it’s nothing. The message is over-long and confused (campaign for an effective referendum? Don’t you mean to campaign against the electoral system? No? Ok then.) And the cartoon …

Thanks, Peter, you’re doing your country a great service.

(Thanks to Lyndon Hood in the comments to Russell’s thread linked above for the pic.)

[This line inserted to fill whitespace].

L

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Its all Greek to me.

There is a political rhythm to the Greek economic crisis. We spent a long weekend on Santorini dodging strikes–Tuesday was the transport workers, Wednesday was the wharfies, Saturday was the May Day demonstrations. Next Wednesday there is a general strike. Our timing has so far been impeccable. We took a ferry last Thursday, so missed the wharfie action that paralyzed Pireus and left a bunch of cruise ship passengers stranded. We returned on Sunday evening so missed the May Day demonstrations that disrupted the Metro rail. We fly to Samos this upcoming Thursday, so will miss the general strike as well. Fingers crossed that nothing happens next Monday, when we fly back. Given recent strike patterns, Monday is due for one so our luck may run out (not that getting stuck on Samos is a bad thing). But we are getting the hang of the flow of things and look forward to seeing how the general strike goes. Although the foreign press has focused on some violence, the reality is that it is only small groups of anarchists who are clashing with the police, and most of them are teenage students. The unions and other civil associations are led by grey haired folk who may have been prone to street action two or three decades ago, but who now are just trying to protect their collective livelihoods (although two banks were attacked by petrol bombs last night, the usual anarchist and Marxist-Leninist suspects are being blamed).

What is interesting about the unfolding of the Greek economic crisis is how ignorant most foreign observers are about its root causes. Most focus on inefficiency and waste in the public sector and the supposedly indolent Greek way of life, which even if true has its causes in something other than the Greek psyche (as some allege). Let me explain.

In the 1950s a strain of developmentalist thought emerged called modernisation theory that claimed that the problem of Latin America and the Mediterranean Rim was a lack of Anglo-Saxon Protestant values resultant from the mix of rigidly hierarchical religious cultures (Catholic, Muslim or Orthodox) and warm climates. The general drift of this “theory” was encapsulated in the so-called Iberian or Mediterranean Ethos: a culture of indulgence, indolence, patronage, clientalism and fatalism structurally rooted in a benign climate that allowed for easy shelter and food production. If only the Greeks, Italians, Spaniards and Portuguese (which actually is not on the Med) had to live in cold climates where survival depended on industry and resourcefulness–then they would have developed the “proper” entrepreneurial values that would have allowed them to develop along the “proper” lines of the Anglo-Saxon world. In other words, backwardness is a function of culture and climate.

Leaving aside the fact that there are plenty of temperate climate locations where entrepreneurial spirits have flourished, and plenty of cold climates where it has not, or the fact that lumping together whole regions in a culturalist explanation is ignorant at best and racist at worst, or that the notion of one universally ‘proper” form of development is both, this discredited canard ignored the structures of economic and political power (many overtly shaped by foreign intervention) that emerged in these regions and which were not reducible to either climate, religion, or civic culture.

By the 1970s modernisation theory was shown to be profoundly flawed. On a scale of over-determinism (when not cultural supremecism), it is up there along with the “warm water port” theory of imperialism. Yet, in recent years, and specifically with relation to the Greek crisis, it has been resurrected in revamped fashion as an explanation for developmental failure. Inspired by neo-liberal thought, the neo-modernisation thesis is that countries with “too much” state involvement in the economy are prone to political nepotism, rent-seeking, corruption and inefficiency. That makes for a lazy, supplicant, and favour-seeking society. The key to development lies in reducing the role of the public sector so that private enterpise can flourish. The private sector is seen as THE panacea for developmental retardation, and elites in places like Germany believe that the Greeks need to accept this.

While there may be some truth to the need for private sector leadership,  the root causes of the current Greek crisis are, again, not as simple as the overbearing role of the state, nor is the solution simply a matter of reducing it.

As I mentioned in the previous post, Greece has an underdeveloped private sector. But–and this is a very big but– the weakness of  the Greek private sector preceded rather than followed the advent of the modern Greek state, and the private sector never attempted to become the motor force for the entire society. If one considers the nature of internecine conflict in Greece dating back two  milenia (for the historically disinclined, please think about Athens and Sparta, or better yet, the Peloponnesian Wars), one realises how parochial local, sectoral and island interests can be.  That worldview continues today. Greek private industry, such as it is, has little concern about contributing to the public good. 

In light of Greek capitalist myopia and parochialism, the recipe for social peace has rested on the public sector being used as a means of absorbing excess labour (along with emigration). The labour market and welfare systems are two-tiered: there are few protections for workers in the private sector outside of employer generosity or union strength, while the public sector adheres to ILO standards. Tax-evasion is a national sport, but the problem is not with individuals but with politically-connected corporations and agricultural interests as well as religious organisations who do not pay anywhere close to their due share of the tax burden but who do put serious money into the main political parties and individual politicians in order to protect their profits (since the money spent on politics is infinitesimal when compared to the valuated tax assessment of their worth). In order to conceal the results of this long-standing practice, successive governments, be they centre-right or centre-left, cook the Treasury books and leave it for their successors to sort out, in what has become an elaborate wink and nod shell game played between themselves and their foreign creditors.

Greeks are by and large a nation of small property owners. Owning a home is, like in NZ, their core objective. The private sector is dominated by small and micro-enterprises run by owner-operators (often familial in nature) who eek out small margins catering to immediate needs (think dairies, dry cleaners. locksmiths and the like). The state does not direct investment capital towards these people, not does it particularly focus investment in large corporations either. What large-scale investment exists comes from foreign-connected sectors such as shipping, and much of the profit generated by the handful of such firms goes off-shore.

To this can be added a large black market fueled by unchecked migration across Greece’s incredibly porous borders. One in ten inhabitants in Greece are foreign born and the majority are undocumented.  This cash economy circulates outside the confines of the state (remember my anecdote about the gypsy street fair in the last post), yet is vital to filling the demand for basic necessities as well as for labour in the agricultural and service (including tourism) industries. Relatively little of the economic activity generated by these non-citizens provides revenue for the state, and with little immigration enforcement available (and largely impossible to regularise in the near term), that situation will only get worse as the official economy shrinks under the austerity regime now being imposed.

Thus the historical source of income stability (at least since the end of the colonel’s dictatorship in 1973) are public service jobs. But without an efficient tax system owing to the political cronyism of the major economic players, public budgets require external financing, which has led to more than two decades of deficit spending happily financed by foreign financial speculators trading in risk derivatives. The idea behind this play, which I accept, is that while firms may go bankrupt nations do not. Compounded interest ensures the investor’s profitability even if the principle is lost in a default (as Argentina showed in 2001-02). So the bottom line is that the system now under siege worked for everyone–the Greek elite enjoyed its privileges, the Greek population remained relatively content and peaceful even if economically underdeveloped by modernisation theory standards, and foreign financiers made money off Greek debt.

The trouble is that with the creation of the Eurozone currency system controlled by one central bank, countries such as Greece were placed in a financial straitjacket that eliminated the autonomy and cushion provided by independent national currencies.  It cannot devalue or overvalue its currency based on market conditions (as for example, Singapore does regularly), and thus is locked into a monetary (supply and demand) framework over which it has not control. Hence, should it default on its debt to its European backers, one major option would be to defect from the Eurozone and re-establish its national currency. There will be pain involved but it would allow Greece to reorganise its finances in more independent, if austere terms. It has enough investment to ensure that even with defection it will not sink (consider that tourism constitutes 20 percent of the Greek economy and its limited niche export markets could actually be favoured by such a move). That in turn might encourage others, particularly the other members of the so-called “Club Med,” to follow suit, which could well spell the end of the Eurozone (especially when considering that a Tory victory in the UK will mean an end  of talk of its ever joining and that Turkish incorporation into the EU could set the stage for an even bigger Greek-type scenario). Thus the Greek bail-out is not so much about Greece as it is about protecting the Eurozone as a currency market.

Which means that the strikes are going to continue, at an increased pace and on a potentially broader scale. In the face of elite indifference to their plight, it is the only means of defense for most Greeks. They have just been told that the public sector will take a 25 percent wage cut on top of a ten percent cut six months ago, then have wages frozen for three years. Imagine if that happened in NZ. Do you think that even the placid Kiwi public worker would take that lying down when s/he had no part in the deficit debacle? The retirement age will also rise while pension benefits will be cut. Although most people appear to accept the former, the latter is a major source of aggravation because as I mentioned before, there is little to no private sector pension plans. Prices of public utilities are set to rise and there is talk of privatising the bulk of the health system (which already is a two-tier system in which private health providers are used by the wealthy). All of which is to say that the burden of sacrifice will be shouldered by those who had nothing to do with creating the crisis in the first place. In fact, although improvements in tax enforcement are mentioned, that remains to be seen, and nowhere has it been mentioned that politicians will take a wage cut or corporations will be required to offer non-wage employment benefits in order to off-set cutbacks in public benefit programs while encouraging labour migration to the private sector. 

Which makes me think that the recently announced IMF/ECB Greek rescue package is more cosmetic than substantive and could well provoke a public backlash that could provoke renewed military interest in internal security. That, indeed, would be a disaster.

Note: As always, my observations on Greece are indebted to the insight of my partner as much as my own. I will take blame for any errors.

PS: I have been thinking of writing a post about our brushes with petty crime and come curious Greek mores, but do not want to turn this into a travelogue.  I shall try to integrate any such thoughts into a larger discussion of more serious subjects.

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Organic protest, and reframing the mineral debate

political-pictures-mimes-million-march

Like many others, I was amazed at the turnout for the anti-mining protest in Auckland on Saturday. That 50,000 people would turn out for such an event is remarkable in itself — the NZRU’s financial problems would be solved if they could attract so many people to half a dozen rugby matches each year, and we’re currently rebuilding Eden Park so they can seat that many a dozen or so times next year, and then maybe once or twice a year thereafter.

But the more remarkable thing about this march was its apparently organic nature. From my read — based only on the media coverage, mind — this was not a visually and ideologically cohesive, “branded” demonstration such as “enough is enough” and the more recent child discipline march, which were more or less Boobs On Bikes without the boobs or the bikes, advocating the wholesale adoption of a political product. It was not a heavily stage-managed piece of public theatre as the Foreshore and Seabed hÄ«koi was, and it was not a set-piece undertaken with a specific tactical purpose such as the most memorable marches of the Springbok Tour were. There were t-shirts and banners and so on, but these were not issued like uniforms with marching orders and approved wording for slogans, imagery and talking points. These were not rented crowds, seas of mime-like bodies serving as a vehicle for someone else’s words and sentiments. This was a genuine all-comers march, and if its almost unprecedented turnout did not bring genuine authority, then its authenticity surely must.

The response from the usual authoritarians has been a heady blend of confusion, disbelief and denial — the same sorts of delusions I normally accuse Labour partisans of falling prey to, when the observable data fails to conform to ideological modelling. This is bad for them, and good for those who oppose the government’s mining plans: if the government persists in believing the models instead of the data, it will go the way of the last government which did so.

But I don’t think this government will do that. I think it will see the writing on the wall, and reframe the mineral debate. Key and Brownlee have surely now seen their error: addressing mining in Schedule 4 as a national economic development issue rather than as a set of regional development issues. Going for it all in one bite was greedy, and as Danyl says, reflects the sort of complacency which creeps in when your opposition isn’t up to the task of opposing. But as strong and authentic as the Auckland march was, it has a weakness, and that’s that it’s composed of Aucklanders. Mining schedule 4 as a national strategy has failed, and likely at the cost of the opportunity to mine in the Coromandel and on Great Barrier Island, but it has thrown into sharp relief those areas where local views are less opposed — such as Paparoa, and possibly Mt Aspiring. As I commented on The Standard earlier, West Coasters are overwhelmingly in support of extended mining, a solid turnout in Nelson notwithstanding. Portraying Nelsonites as latte-sipping greeny liberal lifestylers begrudging their honest hard-working brethren on the other side of the hill a chance at the riches of the land will turn this into a classic town/country divide of the sort National and its mining allies are very skilled at exploiting. So watch for a few hundred — or maybe a thousand — Coasters marching in Westport to support the mining proposal being equated to this weekend’s demonstration in Auckland, and watch for well-meaning Aucklanders, Wellingtonians, Nelsonites and those from elsewhere being told in fairly certain terms to butt out of their regional business.

The government will be taking a risk if it proceeds with this plan, even in a regional form, because it has already permitted the debate to be established as a national issue about national parks in which everyone from the Cape to the Bluff has a stake — but it has amassed plenty of political capital, and now is the time in the electoral cycle to use it. Particularly with the Australian federal government unveiling a new resource tax, New Zealand just got more attractive for mining interests, and the imperative to dig, baby, dig will be stronger than ever.

L

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As advertised

Late last year, when the ACC ructions were underway, the professionals working in the sector warned that people would die as a consequence of the reforms mandated by the new Clinical Pathway on the assessment and treatment of sexual abuse victims.

Since then, and on the basis of the pathway, ACC has taken to declining claims despite publicly claiming consistently throughout the past six months and as recently as today that there was no cost-cutting imperative. This has resulted in a drop of more than 90% in the number of claims approved year-on-year. Explain that, if you can. Nick Smith couldn’t, though he tried to do so during Question Time. It has also caused a chilling effect in which people are simply not applying, since they’d have to undergo the trauma of the exhaustive documentation and excessive review required by the pathway only to have their claims declined.

It’s impossible to separate these reforms from the overarching government plan to privatise — partially or wholly — ACC, and when viewed in this light it becomes clear what’s going on: this is how insurers make their profits. And, just lilke it said on the box, people are dying. It’s a good thing there’s going to be a review, but what’s better is that the sector is organising their own review in parallel. Should make for an interesting compare-and-contrast. I am aware that certain senior National party MPs are aghast at the conduct of ACC, so there may begin to emerge some pressure from within the party for change, as well as from outside. We’ll see.

L

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They have to want it as much as you do.*

I spoke with an old Pentagon friend today (a person with whom I shared strategic planning duties in a specific area of concern, and who went on to far greater things than me), relating to him my early observations about Greece in crisis. I mentioned that the Greeks, who have a public sector that dwarfs the private sector, in which the public sector average wage is far above that of the private sector, have a huge sense of collective entitlement and natural rights. For example, university students (as public entitles) are currently demonstrating daily against proposed cuts in their free lunch and bus pass benefits, but not at the university. Instead, they disrupt downtown traffic. Tomorrow the seafarers, bus drivers and railway workers go on a 12 hour strike to protest wage freezes or labour market infringement  (the train and bus workers are public servants facing wage freezes and the seafarers are striking to protest non-EU ships being allowed berthing rights in Greek ports. Their combined walkout will paralyze the transportation network for 8 hours ). 

But media coverage of the issues is somewhat odd. Rather than look inward, the popular press is full of anti-German rants because the Germans will determine the conditions of the Greek debt bailout (which only delays the inevitable default), and the conditions imposed by the Germans (as majority holders of Greek debt) are considered to be the reasons why Greek workers will not get their entitled, perfunctory raises.  All the while  life goes on–the cafes and supermarkets are full, people crowd the trains, there are few demonstrations outside downtown. People do not appear to connect the impending default to their lifestyle.

Usually wages are tied to productivity, which means that if the public service is well paid it is also efficient (such as in Singapore). But in Greece it is not. From what I have observed and what my Greek interlocutors have told me, nothing gets done or it is waste of time to demand action. For example, on Saturday an illegal gypsy market spung up on the street outside our apartment building. It closed the street to vehicular traffic and vendors camped out on the apartment footsteps. The neighbours shut the front entrance doorway, which is usually propped open, out of fear of robbery. I asked my landlord if that was commonplace and she said that yes, although illegal the gyspy market had run for years because neighbours had zero success in complaining and bribes may have been paid for the authorities to look the other way (which indeed they did–I saw not a single cop during the entire afternoon the market was running).  In other words, Greek public service is as much a hindrance as a help to civil society, hence the proliferation of grey and black market activity. The curious thing is that this situation is tolerated by both of the dominant Greek parties, respectively left and right centre as they may be, because public sector employment and benefits is a common source of patronage and clientilism. Neither one wants to upset that apple cart (even if the latter is foreign debt-bought and effectively owned). 

Mind you, not that all Greek public services stink. When compared to the Auckland raillway system, for example, the Athenian Metro is stellar. There are few delays on the six inter city lines, complete integration with buses and suburban rail lines, and close integration with ferry and airport schedules. The only visible problem, from my non-expert viewpoint, is that there appears to be way too many people (or too little, depending on the station) doing nothing in pursuit of this goal. Then again, I tried the Henderson-Auckland (before and after Britomart) route for years, before and after it was privatised,  and the public-controlled Athens Metro system has it beat by a country mile.

Not that the Greek private sector is a beacon of innovation and entrepeneurship. To the contrary, it is mostly low skilled small holdings with no growth or technological ambition (think butchers, cosmetic vendors and locksmiths), and the political-economic elite (they are the same, crossing familial ties in many instances) in this rigid two party system have no interest in promoting the sort of capitalist ambition that would erode their joint lock on power. Cuba is similar in this regard, because in both cases oligarchic control supplants popular innovation as the motor of progress and majority consent is bought with public sector employment (not that I am drawing a direct line between the two regimes as a whole).

Which is to say, Greek economic backwardness is cultural, contrived and perpetuated by the Greek status quo. The elite see no need to change because deficit spending is a double edged sword, as many US banks found out to their dismay. Deficit-laden countries intimately locked into the European financial system such as Greece will not be allowed to collapse  becuase if they do the financial run is on given that Spain, Portugal and Ireland are all in the same predicament–too much debt, too little ability to pay within IMF/ECB guidlelines.  Hence, Greece may default, but it will not be allowed to financially collapse if for no other reasons than that the repercussions would be catastrophic on the European banking system itself.

Which is where my fomer Pentagon friend comes in. I noted to him that the problem with EU expansion is that the leading EU economies, France and Germany, viewed EU monetary expansion into Southern and Eastern Europe as a development project in which the lagging peripheral economies would be modernised by virtue of their connection with the European core (first via labour-intensive investment, then by value added industrial growth). The Euro giants emulated the US when it engaged Latin America in the 1960s and 1970s under the rubric of modernisation theory: just expose the backward masses to a little capitalist entrepenurialism and all will eventually be right.

Err…wrong.  As my friend noted, the locals have to want the change as much as we/you (external agents) do. And that is a cultural issue more than anything else. 

Developmentalist views such as that of the EU and US ignore the cultural component of investment climates. National preferences are different, cultural mores vary, and collective notions of rights and entitlements are not transferable across borders. The Germans and French may have thought that lending money to Greece to fund the Olympics would promote its modernisation, but like the Yanks in Latin America, they failed to understand that Greek culture–what it means to be Greek–supercedes any IMF/European Central Bank prescriptions. Hosting the Olympics was temporary; to be Greek is forever, and that is not reducible to a current deficit repayment schedule. To the contrary. It is reducible to notions of rights and entitlements crafted over milleniua and mytholoigised as such. That bottom line is not within an IMF  or European Central Bank purview.

Which is why my friend Ray’s point is well taken: an external actor can only help as much as the locals want to help themselves. There is no point in offering assistance and prescriptions if the locals do not see the need to change. Absent a local consensus on the need for change (which can be influenced by externally driven media manipulation but which ultimately has to resonate in the hearts  of the citiznery) better then  for external actors to cut bait than to engage in futile hope that the local conditions will change.

In fact, the opposite may be true: the less a country is propped up by external actors and the more it is forced to look inside itself for solutions, then the more it may eventually address the root causes of its backwardness, decline or stagnation (New Zealand could well be a case in point). In any event, only after internal failure is acknowledged that external assistance will make a difference in Greece or elsewhere, and that difference is not material but attitudinal.

 According to my buddy, that fact is as true for Greece as it is for Somalia, Irag and Afghanistan, and in the latter instances, the stakes are arguably much greater. I disagree with his summary assessment as it applies to Afghanistan (as I believe that there is more at stake than local self-realisation), but cannot help but recognise the truth in his words. At the end of the day in this age, no matter the degree of previous exploitation and subserviance, the root problem of backwardness lies within. Or to put it in my friend’s terms, “if the locals do not want to do it, it aint gonna happen.”

There is truth in that view and no amount of good intentioned external help will resolve the fundamental issue.

*Update: For a jaded by humorous view of Greek politics check this out.

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Something About the Symbolism of Poppies.

Peace Movement Aotearoa is running a white poppy campaign as a fund raiser for its activities. It is doing so one day before the RSA red poppy appeal. Some think the timing is unfortunate in the extreme. Others denounce PMA as “parasites.” I beg to differ.

There are obvious freedom of opinion and speech issues involved, all of which must be resolved in favour of the PMA no matter how misguided they may be or how they may be piggy-backing on the veneration of the sacrifice at Gallipoli. But that is exactly why the white poppy campaign should be respected.

The red poppy campaign is a recognition of sacrifice that, although in service of a foreign master and resulting in (tactical) defeat, was a prime example of the measure of the Kiwi spirit. It is to be honoured, which is why I, as a foreigner, have attended ANZAC day celebrations. But I also respect the white poppy campaign.

That is because there is the offically unrecognised aspect to ANZAC celebrations, which is the futility and subserviance of the heroic sacrifice by so many of New Zealand’s best (and not so best) men  of the day. To be honest, many died in vain. In the larger scheme of things Gallipoli was not strategically decisive. That war was not fought in defense of democracy and freedom.

Therein lies the justification for the white poppy campaign. Along with the red poppy recognition of sacrifice, it is entirely fair to recognise the futility of NZ involvement in some wars and to campaign against any such future involvement. I tend to believe that WW1, WW2 and Korea were just wars (look at North Korea now if you think that was an unjustifed conflict), and NZ involvement in the liberation of Timor Leste is commendable, but the point of the white poppy campaign is to underscore the fact that NZ, as a sovereign and independent nation, can now pick and choose its fights when it does not involve defense of the homeland. Although they may not realise that NZ has to pay its international security dues in order to receive international protection against foreign invasion (however improbable that scenario may be), the PMA crowd are perfectly correct in choosing to parallel their campaign of reflection alongside the recognition of ANZAC sacrifice. Put another way–how many Kiwis have died in a war of NZ’s choosing? It may be true that sometimes “you gotta do what you gotta do,” but when it comes to war, sometimes you have to recognise that you do not have a dog in the fight.

Of course this hurts the ANZAC veterans (or their descendents) who choose not to acknowledge that freedom of expression, governance and worship  is not what Gallipoli (or Vietnam) was about–it was about great power quarrels fought in areas of the global periphery with military-strategic importance.  Thus,  if the mythological claims of defense of freedom are to be honoured, then the white poppy campaign should be welcomed along with its red poppy counterparts. After all, it is difference of opinion that makes the defense of freedom so fundamental to the democratic ethos. Although it may not have been at play at Gallipoli, it sure is when it comes to respecting the rights of the white poppy campaigners.

I therefore honour the ANZACs for their (often unthinking) sacrifice. And I respect the PMA for their thinking opposition to war, however much I believe sometimes war is necessary ( if nothing but on lesser evil grounds).

As for the maori component of this sacrifice and current opposition,  I defer to Lew.

>>Written from Greece, where democracy is clearly showing strains but in which the right to voice is sacrosanct.<<

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Field studying democratic crisis.

I am off to Greece this evening for a one month research and pleasure trip. My partner is working on book that compares family, immigration and higher education policy in three peripheral European democracies, and Greece is one of her case studies. I am tagging along because of our shared interest in studying democracies in crisis. People have asked why we would travel and live in Greece at a time of financial meltdowns, government paralysis, riots and strikes. Our answer is because that is precisely the case. Let me explain.

Most Western political science focuses on stable polities. Scholars prefer stability because, among other things, it provides more complete data sets and long-term institutional analysis.  After all, it is easier to study what is than what is not, and to theorise about what is certain rather than what is uncertain. The study of politics in NZ is one case in point–most of the research conducted in NZ politics departments focuses on voting behavior, party and coalition politics, the structure of parliament, policy formation, leadership issues, public management and other topics amenable to both qualitative and quantitative dissection (I am referring here to NZ domestic politics and not to foreign policy and international relations, which tend to be more fluid by nature).

In the last 30 years a sub-field of “transitology” has developed that studies political societies in transition. The sub-field was pioneered by Latin American and Iberian scholars studying the collapse of democracy and rise of authoritarianism, which was followed in the 1980s by path-breaking works on the collapse of authoritarian regimes and the transition to democracy during the so-called “Third Wave” of democratisation that swept the globe in the decade ending in 1995. I was a student of these pioneers, as was my partner (one generation removed). In my case the interest was also personal, as my upbringing in Latin America in the 1960s and 1970s occurred during a period of rampant political turmoil, including coups, attempted revolutions and virtual civil war in a host of countries.

For people like us the interest is in the politics of change. This involves the fluid dynamics of crisis, which often is chaotic and un-institutionalised, always uncertain, hard to chronicle and which can lead to what is known by neo-Gramscians as the “organic” crisis of the state. Periods of stability, in which politics is regimented, diachronic and orchestrated, tells relatively little about the real fabric or fiber of society. But a society under stress, in which that fabric is loaded by economic, social and political crises, is an excellent candidate for study of what ultimately holds a societal order together. It could be institutions, it could be culture, it could be religion, it could be nationalism, it could be football or some combination thereof, but it is during times of crisis that the fibric stitching of a society is most evident (said plainly: its basic ethno-cultural composition and socio-economic and political organisation). In some societies the crisis leads to regime collapse, in others to government collapse (which is not the same as a regime collapse), and in some cases it leads to regime reform or reconstitution. In many cases, a change of government does not suffice to overcome the crisis (this is less true for mature democracies as it is for new ones, but the crisis of mature democracy is absolutely manifest in places such as Greece).

Like people themselves, how a society responds to crisis is the true measure of its character. Whatever the outcome, all the fissures and seams of the political order are exposed during the moment of crisis. No quantitative data set can fully capture that picture (and in crisis ridden countries data sets are incomplete or unavailable), which is why qualitative field research at the moment of crisis is necessary. The latter is not a matter of sitting in an office on a university-to-university exchange courtesy of a government scholarship, and/or talking to other academics and “important” commentators, but instead involves hitting the streets to get a feel for the public mood, reading, listening to and watching the daily news, then digging through ministerial and interest group archives, interviewing policy makers, sectorial leaders, other interested parties and even casual conversations with taxi drivers, waiters and landlords to get both a structured and unstructured “feel” for how the crisis was caused, is managed, and how it will be resolved (all of which involve linguistic and cultural skills not generally taught in NZ universities).  Although much of what is recorded cannot be used in a book, it gives the observer a better appreciation of contextual depth when addressing the transitional subject.

Which brings us back to Greece. Greece has what could be described as a vigorous civil society burdened by a clientalistic, corporatist and nepotistic political system. Greeks are quick to defend their perceived rights, often by violent means. This approach is not confined to the political fringe but to middle class groups, students, farmers, shopkeepers, unionists and party activists. For example, a few months back university students took their Rector (akin to a Vice Chancellor) hostage, beat him and forced his resignation because of an increase in student fees. Housewives and shopkeepers have joined in violent protest against rising commodity prices than involved molotov versus tear gas clashes with the police. The use of trash can bombs is a common occurence (especially outside of banks), and the occasional political murder has been known to happen.

In the case of demonstrations in Athens, protestors make an obligatory stop at the US embassy to throw rocks, paint and the occasional firebomb just to make the point that the Yanks suck (much the way the Auckland and Wellington rent-a-mobs target the US consulate and embassy during protests against Israel, globalisation, imperialism, climate change, indigenous exploitation and a host of other real and imagined sins that they hold the US responsible for). The point is that Greeks are extremely politically conscious and very staunch when it comes to defending their self-proclaimed rights (the contrast with NZ society could not be starker, because when it comes to politics–and the 100 person rent-a-mobs nothwithstanding–most Kiwis could not be bothered to get off the couch).

Which is why this is the perfect time to go. Greek society is reeling under the weight of a looming credit default that the EU is still attempting to prevent via a financial rescue package crafted by Germany. Government paralysis is such that it can just stand by and hope for the rescue. Greeks are hitting the streets protesting over any number of greviances, one of which is that they are not in control of their collective destiny. Yet, life goes on.

Besides being a traveling companion to my partner, I shall be making my first observations about how the security forces respond to the crisis. I am particularly interested in how the Greek military reacts to the chaos in civil society, and whether it will take a role in internal security after years of working hard to separate internal from external security functions. Given the ever present animosity towards Turkey, issues of foreign-derived terrorism and demographic change tied to EU expansion, it will be interesting to see how the Greek strategic perspective is configured in light of  the internal and external context of crisis in which it is situated.

I shall attempt to write posts once we are settled. In the meantime Lew will hold down the fort until such a time as I get back on line or Anita returns from her hiatus.

PS–the pleasure part involves some weekend island-hopping. Santorini and Samos are on the itinerary.