Trotter: more on the h

This blog is almost becoming Kiwipoliticoh, since given my limited time at present I’m having to pick my battles.

I’m pleased Chris Trotter has come to terms with his inner racist. His characteristically torrid column is basically a rehash of the bogus arguments I discredited here, which Chris has apparently not bothered to read, much less answer the questions I pose in it. His latest column makes explicit what I wrote in the first post on the matter and discussed in more general terms in another post – that people pick an ideological side on matters like this and employ whatever post-hoc rationalisations they need to convince themselves of that position. I freely admit I’ve done the same in this h debate – to me, as to most, it just seems obvious which side is in the right, and that’s a sure sign of ideological knee-jerk. The difference is that my position has some weight of philosophical and legal precedent and linguistic and geographic fact behind it, not just settler ideology.

The column is not pure rehash, though – it’s got some new hash thrown in for good measure, and none of it any more useful than the first lot. It is the canard that by changing a European name back to a Māori name the former is somehow “obliterated” or “expunged” from history. The very examples Chris gives to support this absurd contention disproves it, and moreover it shows the naked settler racism of the position.

Names are important, and to his credit Chris does not succumb to the smug `haven’t those maaris got more important things to worry about’ rhetoric, hoever he over-eggs his pudding a bit here. If, on its own, changing a name genuinely did obliterate and expunge it from history and this was a necessarily bad thing, then Chris ought for consistency’s sake to form a club to protect Beaulieu, Bewley and Baldie Roads, in danger of being so obliterated and expunged by the nefarious newcomer Bowalley Road. The fact is that those names have not been lost – they have faded from common usage but remain a part of the fabric of local culture, to be remembered and celebrated, as they are. If the change goes ahead, nobody except the fearmongers such as Trotter and Laws are suggesting that all historical references to Wanganui be struck from the records, or that a great terminology purge be conducted. The name and the fact of its usage for a century and a half will stand in the documentary record, as it ought to. The generations currently living here will mostly go on using Wanganui, and even many businesses will not bother to change their stationery, out of a dogged loyalty to the identity or out of simple inertia.*

Instead of mourning the loss of Beaulieu, Bewley and Baldie, Chris lionises the upstart Bowalley Road in the very name of his blog. This reveals that Chris accepts that some names have more intrinsic value than others, and on this point I agree with him. Where we disagree is on the basis by which we determine which of an exclusive pair of names should take precedence over the other, a simple matter of logic which I covered in the first post.

Now for the racism: having accepted that some names have more value than others, and having chosen to privilege the colonial name over the traditional name, Chris and others like him essentially say “the settler tradition is more valuable and important than the Māori tradition”. If the case were a marginal one, or if there were two equal competing claims, this would be fair enough – I’m not suggesting that all or even most names ought to be Māori names by right – but in a case where there is a clearly and obviously correct name which isn’t being used in preference to a clearly and obviously incorrect name, the implied statement changes from “the settler tradition is more important than the Māori tradition” to become “settler mistakes are more important than the Māori tradition”, which is much more pejorative. It essentially says “our ignorance is worth more than your identity”, and that, right there, is colonialism in a nutshell.

The battle will be an fierce one, and the troops are massing. The NZGB has signalled that numerical advantage – `preponderance of community views’ – isn’t enough to prevent the change, but it also grants significant weight to those views. In a bald attempt to strengthen their crude majoritarian argument before the NZGB, the Wanganui District Council (which, oddly, will not have to change its name even if the city name changes) has decided to seek a legal opinion on the NZGB’s decision, and to hold another referendum on the spelling of the name. As if there is such a thing, they plan to “conduct a neutral information campaign” on the matter beforehand, though it isn’t clear how they plan on ensuring even a fig-leaf of neutrality – will the council (who voted against the change) argue the sans-h case while Te Runanga o Tupoho (who brought the petition to the NZGB) argues the h case? Will the council pretend it can be neutral on this matter? And what is the purpose of an information campaign anyway, when they, better than anyone else, know that this isn’t a matter of logical, dispassionate assessment of facts and history – it’s a matter of picking sides. I watch the carrion birds circling with interest.

L

* Incidentally, the Wanganui Chronicle had a good laugh at itself and its readership on April 1 with a front-page story announcing that the name would be changed to the Whanganui Chronicle. Good on them! A few days later the editorial apologised to all those who had been taken in, saying that they’d thought the story too absurd to be believable.

NZGB to settlers:

Matters of linguistic and geographic fact are determined by meritorious debate, not majoritarian opinion.

Yesterday the New Zealand Geographic Board announced that there is a valid case for the name of the city of Wanganui to be spelt in its correct rendition of Whanganui. (I posted on this issue twice recently.)

The NZGB explicitly rejected the majoritarian argument, stating that the debate was important, not just the show of hands:

The Board noted the results of a referendum held in 2006, when a considerable number of Wanganui residents indicated their preference to retain the current spelling. However, the Board was conscious that declining the proposal at this point would not allow views both for and against to be expressed

Michael Laws has predictably come out calling this an attack on democracy. Unfortunately for demagogues like Laws (fortunately for the rest of us) facts are not democratically determined. Facts are defined by their relationship to reality, not by their relationship to majority opinion. Democracy is good for a very large number of things, but it’s very poor indeed for determining matters of actual factual observable and demonstrable reality.

But the really important aspect of the NZGB’s release are the implications of the following two statements:

“Wanganui, the name given to the town to reflect its position near the mouth of the Whanganui River, was spelt incorrectly and has never been formally gazetted by this Board or its predecessors. It is therefore not currently an official New Zealand place name.”

[…]

“While the Board acknowledges the historical transcription was based on the local pronunciation, the mechanics of standardising a previous unwritten language, together with its full meaning/translation, signal that the name was intended to be ‘Whanganui’. This is about correcting a mistake made more than 150 years ago.”

In these statements Dr Don Grant suggests that a local council may not by simple fiat enshrine an error as a norm – the origin of that error matters, and if its correctness is disputed then the intention of those who originated it becomes relevant. This implies a burden of proof on those wanting to retain the current no-h spelling to demonstrate that those who originally spelt the name that way intended to do so – thereby coining a new word. That is an untenable position held only by those with no genuine arguments of merit, whose leader Laws stated that people who didn’t like the current spelling could go to `Fuckatanay’ (as he pronounced it), neatly highlighting the crass idiocy of the position.

It is also an important matter of precedence. My arguments have been based on the idea that the current spelling of `Wanganui’ is the correct spelling in law, while Dr Grant made quite clear that it has no legitimacy, having never been formally recognised by the body properly constituted to do so, which is not the Wanganui District Council. Because of this, the decision the NZGB needs to make is not whether to confirm the de jure status quo spelling as the settlers suggest, but whether to give the de facto spelling precedence over the de jure status quo, which (since no alternative spelling has been approved by the properly-constituted body) can only be Whanganui. The core of the settler position is this claim to the status quo, that possession is nine tenths of the law and that since the name is currently in settler possession it is theirs to define and use as they wish without consideration to others or to the historical, linguistic and geographic facts of the matter. The status quo in this case is clearly on the side of the h: if the settlers cannot convince the board of their claim it will not remain as Wanganui but will revert to the correct spelling. That’s a huge difference.

Submissions open in mid-May. If you have an argument you want heard on this, make a submission. The debate matters.

L

Rethinking market socialism.

The crisis of the latest incarnation of market -driven economics, particularly in its financial sector, has raised the possibility of political-economic alternatives not so much as remedies but as significantly different approaches to the structuring of national economies in a global system of production and exchange. One of these is a revamped–as opposed to resurrected–market socialism. For those who are not familiar with the concept, a quick synopsis is found here. Although current conditions are different from those that led to the original formulation, some basic tenets can be discerned and elaborated upon. Basically, within a market system of supply and demand, the state operates as a macroeconomic manager (not just a toothless regulator) by obtaining majority stakes in strategic assets (be they primary good or value added). In parallel, at a mircroeconomic level it moves to promote significant (be it as a majority or as part of a tripartite arrangement with the state and capitalists) worker ownership in strategic industries (such as through employee stock option programmes  (ESOPs) or by encouraging the formation of cooperatives) in exchange for wage restraint and greater productivity. The logic is that with workers as co-owners of the industries in which they are employed, they will understand managerial rationales as well as the conditions on the production line, thereby promoting what could be called “equitable efficiency” in production.  Non-strategic components of the economy can be encouraged to follow suit but will not be forced to engage in such “socialising” programmes, but will be taxed at a higher rate if worker participation schemes are not incorporated. All sectors will follow the laws of economic efficiency followed by private firms–that is, the market logics of supply, demand and prices. Hence, the object is to prevent rent seeking behaviours usually associated with state ownership of the means of production–to wit, no “make work” or ghost worker schemes, no padding of employee roles, no patronage or clientalistic networks etc. Needless to say, unions may see a threat in this, but their self-interest as agents should not detract from the potential benefits of ownership accrued by workers as a class as well as principals of unions (where they are organised). Union shareholding schemes might be one way to reconcile the interests of agents and principals in such an event.

Under such a market socialist approach a restrained individual taxation rate that increases the amount of discretionary income to wage-owners as well as as capitalists can be complemented by a differential corporate rate that rewards worker ownership with lower rates while maintaining a higher rate for “traditional” firms–i.e. those that appropriate the surplus generated by workers in the form of profits that are in the majority distributed to non-workers (be they shareholders or managers).

With a greater State macroeconomic presence as a stakeholder in strategic industries and manager of microfoundational (the orientation of specific  industry) policy, coupled with active promotion of worker participation in ownership of the industries in which they are employed, backed by a taxation policy that rewards those who see the wisdom of making workers co-owners and understand that the State, as representative of all sectoral interests, is better suited for macroeconomic management than individual capitalists or their associations, a new market socialist project can be advanced that will filter global market dynamics into a more nuanced, and fairer, distribution of wealth and income in society. In a small island trade-dependent state, socio-economic stability depends on this.

There is actually a model for such a system, although it has yet to incorporate worker ownership schemes as part of its developmental project. That model is Singapore and the only reason it does not incorporate policies of worker ownership  into what is otherwise a state-dominated export-oriented economy that is successful is that it is a)authoritarian and thus can impose its will without worrying about the filter of mass consent;  b) foreign investors resist worker participation as a condition for investment; and c) as a result of the previous two factors, foreign workers on temporary visas unprotected by labor laws reserved for Singaporean citizens are used to structurally undermine any moves in that direction.

As a liberal democracy NZ can not emulate everything that Singapore does, but what it can do is note the commanding position of the State in its macroeconomic affairs, to include its use of  State holding companies as channels for public investment in a range of “private” industries as well as its use of taxation as an incentive for corporate investment and production, on the one hand, and household consumption on the other. Admittedly, the argument presented here is just a simplified sketch of the possibilities of market socialism in the present conjuncture, but the intention is to raise the point rather than fully elaborate upon it. The latter task is left to the readers.

A Green Neo-Realist Foreign Policy Manifesto

Now that the Green Party has matured into the third most important political party in NZ, it is time that it develop an equally robust foreign policy stance that moves beyond its visceral commitment to pacifism, human rights and civil liberties, international ecological defence and anti-imperialism. Although laudable goals that still have a place on the Green foreign policy agenda, these foundational pillars need to be supplemented by a more nuanced and less ideologically rigid, but no less idealist in principle, approach to New Zealand’s foreign affairs.

Lets start with defence and intelligence. The Green Party should maintain their absolute commitment to conventional and unconventional weapons non-proliferation, nuclear disarmament, prohibitions of chemical and biological weapons and bans on the manufacture and sale of land mines and other indiscriminate munitions. It should maintain its commitment to seeing the NZDF externally focused on peace-keeping and nation building as its major priority. It should resist efforts to turn the NZDF in to a mini Australian armed forces, and resist the calls for the NZDF to follow Australia, the US and the UK into battle no matter the context or justification. But it also has to realise that NZ’s own defence is premised on its being a good international security partner, and that it cannot abrogate its responsibilities in that field. To that end, the Greens should support efforts to restore a close air/ground support wing to the NZAF in order to provide NZ peace-keeping troops with independent air cover in foreign conflict zones. Even when under multinational military control such as the ISAF mission in Afghanistan, military protocols allow services of each country to protect their fellow troops as a priority. If NZ is going to continue its level of international troop deployments in conflict zones like Afghanistan, East Timor, the Solomons and elsewhere, the ability to provide protective air cover to its troops on the ground is surely a worthy cause. And, as it turns, out, be they rotary or fixed wing, surplus close air support platforms in the inventories of several NATO and other countries come relatively cheap when compared to the aborted F-16 purchase of a decade ago.

Likewise, the Greens needs to support the reinforcement of the Navy’s long-range patrol and interdiction capability, if for no other reason than to protect the resources located in the NZ Exclusive Economic Zone and to deter illegal poaching of whale and endangered fish in the waters adjacent to it. Moreover, such a capability can also serve in anti-piracy roles in the sea lines of communication most vital to new Zealand’s trade, and to keep track of the increasing presence of foreign submarine and surface fleets in and around New Zealand waters. Passivity in the face of such probes will likely be interpreted as acquiescence or inability to counter them, which will encourage further encroachments into the EEC, if not the territorial limit itself. That is also why the Greens need to support the continuing emphasis placed on the NZSAS as the country’s special operations branch. What it can do differently is question the deployments they undertake on behalf of foreign powers, perhaps broadening the scope of their activities to areas outside of the usual SOLIC (special operations and low intensity conflict) scenarios.

 Thus, the Greens should support efforts to increase NZDF spending to  1.5 percent of GDP, in line with the lower threshold of OECD nations, but with a specific focus on the Green “line” of defense and security priorities. No more over priced and ill-suited LAVs, no more $1 million-a-copy anti-tank shoulder fired rockets–just the best weapons and platforms for the NZDF’s unique “niche” role in international security affairs. Even if coat-tailing on previous Labour initiatives, a neo-realist Green approach to defence can provide a human security orientation that extends beyond the traditional security concerns of the major parties.

With regard to intelligence, the Greens must continue their valiant opposition to the unaccountable and often rogue behaviour of  the NZSIS and Police intelligence. But it must couple its demands for more democratic accountability and transparency–something that may begin with the appointment of Russell Norman and Tariana Turia to the Parliamentary Security and Intelligence Committee–with a more reasoned demand that external intelligence collection be separated from domestic intelligence collection and delegated to different agencies. Counter-intelligence functions can be shared because foreign espionage often follows commercial and criminal avenues, but the business of spying in foreign places is very different than spying on one’s own citizens. Thus the Police should be responsible for the latter, with all of the attendant legal safeguards that purportedly govern their operations, whereas the NZSIS can limit itself, along with the GCSB, to external intelligence collection and analysis. No other political party has even mentioned this, much less understood the multiple rationales as to why decentralisation of intelligence functions is actually an important step towards removing the authoritarian culture so deeply imbedded in New Zealand’s intelligence apparatus. In line with these reforms, the Greens should demand that the PSIC be elevated to the status of select committee allowed to review classified material in closed session. Only then will real parliamentary oversight of the intelligence apparatus be possible.

In terms of trade, the Greens need to modify their generic opposition to trade. Instead of a seeming blanket opposition to open economies, the NZ Green Party needs to understand that for a vulnerable isolated and resource-scarce country like NZ, trade is a lifeline. It is here to stay as the mainstay of macroeconomic policy. Therefore, the issue should not whether to trade or not to trade, but how to trade? The answer, as I have mentioned in previous posts, is to trade fairly as well as (or as opposed to) freely. Trading fairly means to concentrate not just on tariff reduction and other bi-or multilateral entry conditions, but on after-entry conditions pertinent to labour rights, working conditions, gender and indigenous issues, wages, health, safety and environmental standards. The goal is to promote a level of regulatory symmetry n the trade relationship, thereby leveling the playing field or at least standardising the rules of investment and competition in the interest of productivity, growth AND human dignity in the labour process. This is as true for NZ investment abroad as well as foreign investment in Aotearoa. The basic thrust is to do onto other (foreign) laborers as what one would do onto oneself (or one’s co-nationals). Capitalists may not like the impact on their short-term profits of promoting such trade agreements, but it is in their longer-term interests, in terms of a guaranteed restrained rate of profit, that they play fair and symmetrically. Moreover, such a stance places NZ at the forefront of trade debates that emphasize a balance between profit, growth and larger communitarian considerations.

Diplomatically, the Greens need to promote a strengthened constructivist-institutionalist approach to foreign policy. Constructivism in foreign policy is focused on normative value change in key policy areas (say, human rights and disarmament)  and institutionalism is focused on strengthening multilateral institutional approaches to conflict resolution and global peace and stability based on shared ideals.  Although Labour advocated such an approach, it too often has compromised its stance in order to curry favour with trade or defence partners. National has no commitment to idealism in foreign affairs. Thus it is left for the Greens to push hardest for an ongoing, if not increased commitment to finding multilateral institutionalised approaches to the sources of international disputes, and to push for progressive value change within international organisations and regional institutions. In doing so it will help continue New Zealand’s reputation as an honest international broker, mediator and arbitrator committed to supra-and transnational methods of grievance redress and resolution. After all, if the world is truly to move away from the anarchic” state of nature” that is the realist conception of international affairs, it needs to move beyond the nation-state as the ultimate adjudicator of international disputes. It is up to small countries to make the case. It is their self-interest to do so, and that is eminently realist in conception. It is, in other words, a bit of Green (neo) realism at play.

All of this is a big task and may run counter to the wishes of more militant elements in the “watermelon” constituency of the Green Party (which should be seen as a source of strength rather than as a weakness). Now is the time to move beyond the parochial environmentalism, classism and other foundational Green principles and towards an agenda that attracts more mainstream voters in pursuit of being a legitimate swing vote and therefore real power broker in the New Zealand political system. This foreign policy manifesto is a gesture in that direction. That does not mean abandonment of  the foundational principles, but the enhancing and expanding of them. This is important because only the Greens have the ability to contribute significantly to a shift in the status quo political discourse currently on display. No other party does.

 After all, with ACT having prostituted its libertarian principles to the crime and punishment authoritarians headed by Mr.Garrett (see Lew and Anita’s posts on the issue  below), the Greens are the only honest political party left in parliament–with them, what you see is what you get, full stop. Given that unique position of advantage, now is the time for the Green Party to develop more depth to their policy agenda, which is why this post is tabled.

Political identities, an apology, and more on the money proxy

BK Drinkwater replied several days ago to my post on the core philosophical difference between Labour and National. Unfortunately I’ve been too busy (with work and with caring for family members at either end of their lives) to give very much attention to this sort of thing, and this state will continue for the foreseeable future. His is a good post, and although it’s couched as a critique of mine, I mostly agree with it. It’s not so much arguing a different point than mine as looking at the issue more deeply. I especially like his restatement of the matter in formal terms:

The big question, and this is the one that will probably decide which camp of economic thought you pitch your tent in, is this: to what extent do the ill social products of income inequality compound as according to income inequality, and does this effect rival the benefits of economic growth to the point where you’re willing to see less of the latter?

A therefore B (therefore A)
I was in the initial post perhaps a bit vague about which parts of my argument were the hypothesis and which were the evidence to prove it (in truth, they’re both, which is itself problematic). This meant BK accepted the utilitarian dichotomy I raised (greatest good versus least harm), but didn’t follow it completely through. Once followed through, I think it illuminates the reasoning behind both sides’ policy preferences and ideological truisms. I pegged the core philosophical difference to a crude split of those who see the world as being bounteous with opportunity and potential, and those who see it as being fraught with danger and risk. For example:

Classical liberals in National are concerned almost solely with negative rights: the right not to have your stuff stolen, the right not to be raped, etc etc. Labour recognizes also positive rights: the right to a high standard of education and healthcare, the right to share equitably in the prosperity of the nation as a whole.

(Ignoring for a moment that the example isn’t accurate because both National and Labour believe in the things ascribed above to Labour). The notional ambitionist is concerned with negative rights because they see the world as basically beneficial, and consider that if people are just left the hell alone human beings will generally be sweet. The notional mitigationist ideologue, on the other hand, believes that the world is a harsh place, and that minimum entitlements of comfort and dignity should be guaranteed in positive rights. The two positions positions don’t explain the worldview as much as they are derived from the worldview. Other dichotomies map to this with a fair degree of accuracy: the abundance versus scarcity split of how full the glass is represents just one, you can probably think up others.

Above, I used `the world’ deliberately, because I think a good case study for this sort of thing are the linked matters of climate change and peak oil. Ambitionists, by and large, see neither of these as a great problem, because at core they hold an unshakable confidence in humanity’s ability to overcome anything and will find ways to mitigate against both, given enough time and good reason to do so. This is the throughoing theme of Atlas Shrugged. Mitigationists, on the other hand, believe that there are forces greater than humanity and that these problems cannot be overcome – at least not by the ambitionist approach. This is the throughgoing theme of another great dystopic novel, The War of the Worlds, where humanity is saved through no fault of our own but through careful preservation of a lower bound.

These dichotomies are heavily propagandised, and are a significant matter of political identity. I reject much of the Marxist cui bono? approach to explaining political allegiance, and rather think that (warning, rash generalisations follow) the wealthy support National because National reflects their experience that the world is a sweet place where everyone has opportunities, they just have to take them; while the less-wealthy support Labour because Labour reflects their experience that it’s tough to scrape by without a decent base-line of public support. This leads me to my next point: what do people really believe?

Apology
Answer: what their ideological identity tells them to. The dirty little secret of my initial post is that I appealed to utilitarianism because it’s a useful framework, but I don’t actually buy it, and I don’t think very many other people do either. The unstated assumption was that people think rationally about matters like this, in terms of actual utility. I think people should, but I don’t think they do. When it comes to propagandised political identity markers such as these dichotomies, people assess policies or political positions in deontological terms, not in utilitarian terms – they identify themselves with an end and then rationalise the necessary means, inventing or adopting or appropriating arguments which allow them to sleep at night. The question is what does this policy advocate vis-a-vis what I believe to be right rather than what utility will this policy bring vis-a-vis the alternatives. So all this talk about opportunity and risk and discount rates and such is useful in theory, and useful in practice inasmuch as it might form the basis for ideologically resonant arguments which might lead to greater support for better policy outcomes, but I don’t think the question I raised was strictly one of utility – it’s one of identity. Sorry about that.

More on the money proxy
I want to expand on why I have problems with the money proxy, which I touched on in the last post. It’s pretty simple, and explains the reason why I’m not strictly an ambitionist: money is both the means by which we judge a person’s worth (in the human sense) and the resource needed to enjoy the comfort and dignity to which I (and most people) believe human beings are entitled by simple virtue of their being human beings. Because the same thing is used as both a means and an end, there is inevitable conflict: by denying people access to sufficient food, healthcare, accomodation, etc. on the grounds that they cannot afford to buy it for themselves, a society tacitly says: you are not worth it because you do not have enough money. This, to me, is not acceptable. If we cannot divorce the value of a person’s dignity, comfort and wellbeing from the monetary cost of sustaining it, what’s the purpose of society?

I suppose that’s my A.

L

Blog Link–Reigning in the Spies

The new Parliamentary Intelligence and Oversight Committee has been announced, and it has the potential to be a milestone for intelligence oversight in NZ. Tariana Turia and Rodney Hide were appointed by John Key (who chairs the committee), and Russell Norman was chosen by Phil Goff (who also serves on the committee). Turia and Norman lead parties that have had their members spied on by the SIS or Police, and Hide has opposed on libertarian grounds the expansion of security based constraints on civil liberties (he opposed passing of the Terrorism Suppression Act, among other things). Thus three out of the five new members have been critical of the intelligence services, which is in stark contrast to previous members during the Fifth Labour government. Although the possibility of their being coopted cannot  be discounted, there is an equal if not greater possibility that their appointment signals a shared belief by Mr. Key and Mr. Goff that the time has come for a review of the way intelligence operations are conducted in NZ. Lets hope so. There are already signs that moves in that direction are afoot–Mr. Key’s request of the SIS Inspector General to report to him on the domestic spying programme and SIS Director-General Warren Tucker’s apparent commitment to more transparency being two examples–but what is needed is for the committee to undertake a thorough review of the NZ intelligence apparatus, including its legal charter, operational conduct and organizational focus, and its accountability to parliament as well as to the government of the day. In short, rather than the ineffectual government and SIS lapdog that it was during the Fifth Labour government, the committee needs to grow some teeth and bite hard into the meat of the matter–the lack of transparency and accountability traditionally exhibited by important elements of the intelligence community. That requires a re-write of its charter, since it is not a select committee and therefore does not have the independence or authority to demand classified briefs (or any other information) from the agencies it supposedly oversees. A more detailed review of the potential for reform embodied in the new committee is offered in this month’s “Word from Afar” column at Scoop (http://www.scoop.co.nz/stories/HL0903/S00147.htm). For the moment, the new committee should be applauded, yet more importantly, encouraged to undertake its responsibilities in pursuit of a new culture of democratic accountability and transparency in the NZ intelligence services.

Clocks and Clouds

Juan Linz wrote that political time was like cloud time—it moved at a different pace than chronological time, yet had a discernable rhythm of its own. I would like to reverse the metaphor to note that when it comes to political and economic cycles in liberal democracies, it is political time that is more chronological, whereas economic time is more akin to cloud time.

 Under conditions of liberal democracy, political time is codified, demarcated and predictable. Elections are held at regular intervals, parliaments sit for a given amount of days in a calendar year; government departments issue annual reports and respond to inquiries in prescribed (if not timely) fashion, bills are introduced in specified ways within specific timeframes, etc. Even political debates take on a predictable rhythm, with arguments over finances occurring around the time of government budget announcements (in New Zealand that is usually in May), and partisan and personal attacks occurring during periods of relative policy stability. Come summer, most things political more or less stop for the holidays, then resume in the Fall.

Economic time, however, is another matter. Capitalist economies are obviously cyclical, but the cycles are twofold and not coincident with political time. First, there is the “boom and bust” cycle in which markets expand and contract in pursuit of (re) equilibrated growth. This is the cumulus cloud time of economic cycles. That is, the short cycle dimension of capitalist economics, marked by sudden shifts in direction driven by the warming or cooling of market preferences. In parallel, there is a long cycle in which capitalist economies shift between market-driven or state-managed forms. This is the cirrus cloud dimension of economic time. The sclerosis, stagnation or failure of one economic form, such as the market failures now evident, leads to the shift to the other. Thus, the Great Depression spelled the end of laissez faire market economics and the advent of welfare statism, which after the resolution of World War 2 led to nearly forty years of prosperity in the liberal democratic world. In turn, by the 1980s the era of state-centered economics had come to an end, saddled as it was by rent-seeking behaviours, clientalism and systemic inefficiencies produced by bureaucratic distortions of the productive process. What emerged in response was neoliberal market economics. This era was driven by deregulation, trade opening and monetarist macroeconomic prescriptions that were premised on the belief—subsequently proven to be unfounded—that finance capital would be the most accurate determiner of global productive investment.

Two decades later, the era of neoliberal economics has concluded in ignoble fashion. Note that this market-oriented cycle lasted half as long as the previous state-centered cycle, which in turn was shorter than the original period of laissez faire. This shortened lifespan is due to the combination of market-driven globalization of production coupled with exponential advances in telecommunications and transportation. Phrased differently, it would seem that the economic cirrus clouds have sped up at a time when the negative cumulus layer has deepened, all while political time remains constant. Therein lies the rub.

It is generally held that market failures lead political shifts to the Left so as to facilitate the move to state-centered macroeconomic policy. Conversely, state-centered failures are said to lead to shifts to the political Right so as to facilitate the adoption of market-oriented strategies. In the 1930s and 1980s this rule generally held true for advanced democracies. But since economic and political time are not coincident, it is by no means a universal truth that such will occur at every moment of cyclical transition. The current moment is a case in point.

In the US the rule seems to have been upheld, as is true for several European countries. But in France, New Zealand, Japan and Italy, among others, Right-oriented governments are confronted with market failure and the need to provide political space for an economic transition. The political cycle in these countries does not allow for their immediate replacement with Left-oriented governments. There is a lack of synchronicity between political clock and economic cloud time in these countries. This places the ideological beliefs and policy prescriptions of such Right governments under pressure, since in principle they are averse to increasing the role of the state in macroeconomic affairs. Yet the magnitude of the current market failure is such that the role of the State, at least as a macroeconomic regulator, needs to be considered. This consideration needs to happen quickly, since the temporal horizons on finding solutions is near immediate given the speed at which the global recessionary pressure wave is advancing. Put another way,  the cumulus and cirrus aspects of economic time have come together in a perfect storm of economic necessity that Right governments find particularly difficult to address, much less resolve without betraying their foundational principles. To do so is to tacitly admit that there are inherent flaws in market logics that require State intervention in order to be overcome (in the reverse of the betrayal of foundational principles and tacit admission of State-capitalist failures by so-called “Third Way” Labour parties).

Thus the dilemma for Mr. Key’s government: how to reconcile clock and cloud time in a small island democracy at the outer edge of an economic storm front? From what has been seen so far, it appears that he has opted to shift to the Left, but as of yet without categorically stating that he is doing so. With ACT in the government coalition, that makes for interesting theater in the months ahead. Or to conclude with yet more metaphor abuse: could there also be internal storm clouds on NACTIONAL’s horizon?

FSA review: strong panel, broad terms, quick

The government has appointed three very eminent and well-respected persons to the panel which will review the Foreshore and Seabed Act 2004, has granted them broad terms of reference, and has imposed a short deadline of 30 June by which they must report back to the Attorney-General. The press release, FAQ and linked ToR document is here.

This seems very positive. The three appointees – Justice Eddie Durie, Professor Richard Boast and Hana O’Regan – are highly-regarded, and none are enemies of tino rangatiratanga or friends of blanket expropriation. The terms of reference give this panel the authority to cover a wide scope of issues, including the prejudicial nature of the FSA (which scotched due process via the courts), to take new submissions, to hold hui and meetings on the matter, and to reconsider historical submissions to the FSA, and `other public documents’ which must surely include the report of UN Special Rapporteur on the Rights of Indigenous Peoples Dr Rodolfo Stavenhagen, which the Clark government dismissed with scorn.

I have two reservations: first, the short deadline, and second, the lack of commitment to following through on the recommendations of the panel. The short deadline is both a blessing and a curse – it will mean the issue doesn’t drag on, but this could be at the expense of full consultation. The second issue is more serious – there seems to be no indication that the government is under obligation to act on the recommendations, and that means we must take them on their word. The government response to the panel’s report will be a defining issue in NZ political history.

L

Worker organised resistance

Once again Indymedia is the only place providing coverage of worker organised resistance against the current government’s policies.

While the media, major political parties and even the left wing blogs have concentrated on  what was going on inside the Jobs Summit a good old fashioned protest was going on outside. Despite the great messages, the photo friendly images and reality of the protest the coverage we’ve seen has focussed only on the centre-left’s response.

Even the left wing commentary on the lack of men at the summit has been full of images of men (to show the absence of women) rather than images of strong women raising their own voices.

I also haven’t seen any mainstream coverage of the Christchurch picket against the 90 day sacking law which attracted a variety of workers groups and unions.

Sometime in the next few years the left needs to realise that we’re no longer part of the orthodoxy, it’s ok to protest (in fact it always was). We can take our banner and loudspeakers out on the street and tell the world that our voices and our rights are important.

Ansell’s talents underemployed

John Ansell, author of the famous and fabulously effective 2005 National party billboard campaign, has been blogging since September last year. As a political communication geek, I kept an eye on his site for the first month or so, but unfortunately neglected it before he published a lot of proofs of material – billboards, banners and newspaper ads for the ACT campaign, and a couple for National, many of which I’d not seen. His services were not in high demand for the 2008 election, but I think they should have been. Regardless of whether you agree with the policy positions these advocate, the point is to convey a message, and I think these do that job admirably. The parties currently outside government have a great deal to learn from those in government in this regard.

Click on this one, my nomination for Most Outrageous NZ Propaganda Image of 2008, for the whole lot. They’re worth it.

Just try to imagine the outcry if it had been hung from the Ghuznee St overpass.

L