Category: governance

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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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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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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.

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The EAB becomes the NAB.

 It has recently been announced the the External Assessment Bureau (EAB) has become the National Assessment Bureau (NAB), combining external as well as internal intelligence assessments in the lead up to the 2011 Rugby World Cup (although I believe that the claim that the move was needed to better coordinate threat assessment for the World Cup is a bit specious, especially since the recommendation for an integration of internal and external intelligence assessment came from a report by former Foreign Affairs Secretary Simon Murdoch that was commissioned independently of the World Cup bid). There has long been dissatisfaction with the lack of coordination between New Zealand internal and external intelligence collection and analysis agencies (to say nothing of their professionalism and competence). Although there is a veritable alphabet soup of such agencies, there was until now no single unit that coordinated all of the intelligence flows into one coherent assessment brief for the PM. Some believe that this rendered the EAB ineffectual because it was a duplication of resources (since all of the operational agencies also have analytic branches that formulate their own assessments). Others simply claimed that it was a waste of space because PMs usually dealt directly with the operational agencies themselves (since the PM is also the Minister of Security and Intelligence). Thus the options were to disband the EAB or refocus it. The government has chosen the latter course.

The important thing to note is that the EAB/NAB is an analytic group located in the Prime Minister’s cabinet, and is responsible for providing intelligence assessments for the PM.  It is not an intelligence-gathering (spy) agency even though it handles classified material. Yet, news that it has now assumed an internal focus along with its ongoing external assessment duties has alarmed civil libertarians and elements on the Left. The Greens put out a press release expressing concern over the move, with Keith Locke offering the humorous observation that the only area of growth in the public service seems to be the spy agencies.

Well, not quite. Although I respect Keith Locke’s position, I disagree that giving the revamped NAB an internal focus is a bad thing or that this reform signifies a growth of the spy apparatus. The NAB budget and those of the operational agencies have remained relatively consistent the last five years (after major increases post 9/11), and the NAB is not targeted to increase the number of personnel working within it (which means more responsibilities for the same number of people assigned to it). Hence all that has been done is to give the intelligence assessment unit with the PMs office access to more rounded intelligence streams from both internal and external security agencies so as to be able to better prepare unitary and coherent net security assessments for the PM. Before, the EAB only looked at foreign issues as fed to it by MFAT, the SIS, the GCSB, Customs, Immigration and the NZDF intelligence units. Now it will get streams from the Police, CTAG (Counter Terrorism Assessment Group, which is an inter-agency unit that does both internal and external terrorist assessment) and from the SIS/GCSB and the other mentioned agencies on internal issues of concern. That way the NAB can provide a more comprehensive picture of any given security matter to the PM, since often times threats have what is known as a “glocal” character–a mixture of global and local characteristics. Think organised crime and its potential nexus with terrorism….the “glocal” or “intermestic” overlap is broad and variegated

In a way the change makes the NAB the NZ equivalent of the US National Security Council (NSC)–the primary assessment agency working for the President/PM. It is an assessment unit, not an intelligence collection (operational) unit. It is full of analysts, not spies. With a 3 million dollar budget covering 30 people, it does not have the capacity to do anything other than read and assess what the operational branches provide them. From my perspective, were I to be offered a government job, this would be the best place to be (knowledge being power, etc.).

This is not to say that the announcement is worry-free. The troubling parts are: 1) whether this means that both internal and external intelligence assessments will  now be politicised, much as the Zaoui and Urewera 18 cases were; and 2) no Parliamentary consultation or inputs were done in the build-up to the change. Although the Murdoch report is correct (there was a need to rationalise the flow of intelligence to the PMs office), it might have been more transparent and democratic to run the proposed reform past the country’s elected representatives rather than to just do it by executive fiat. There are also issues of accountability, since the NAB is not required to deliver specific reports to the the Intelligence and Security Committee (such as it is) or Parliament in general (although it does maintain a web site and issues and annual report on the generalities of its mission). The latter is not an insurmountable obstacle, however, because the PM can be made to account for the actions of his cabinet.

Thus, unlike many of my learned counterparts on the Left and in politics, I do not see the revamping of the EAB/NAB as an assault on civil liberties or an expansion of the security apparatus. Instead I see it as an effort to streamline and lend coherency to what the PM receives as informed advice on matters of security and intelligence. Time will tell if I am correct.

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The limitations of N.8 wire, and how the political/policy talent bench is so thin.

As some may remember, I have been in NZ on a mix of research and personal business (truth be told, I am in NZ accompanying my partner on her research leave. The title of this post is her idea, with a hat tip to Brian Easton). As part of my project on the security politics of peripheral democracies (which has NZ as a case study), I have been interviewing a cross-section of people involved in political life both in and outside the Wellington beltway: politicians, journalists, academicians, policy analysts, community and political activists, opinion-makers, bloggers (!) and a few very smart friends. Oh, and Lew (albeit informally, over a very enjoyable lunch). Some of those conversations were illuminating, some were lucid, some were disappointing and some, well, forgotten in the haze of a very good time.

Notwithstanding the fogginess of my recollection of a few of those conversations, one coherent theme has emerged. NZ’s so-called “number 8 wire attitude,” supposedly evidence of Kiwi pragmatism and resourcefulness, is actually the logical result of a chronic and perpetual lack of planning and an ex post, ad hoc approach to policy-making. One interlocutor phrased it as “policy by anecdote,” where politicians relate stories they have been told as proof that similar approaches elsewhere can work just fine in NZ (such as the repeated mention of Singapore as a developmental model for NZ because it is a small island economy, ignoring the obvious fact that it is authoritarian, stratified and in fact a state capitalist welfare state rather than a true market economy). Others simply noted a lack of vision, or a lack of reward for innovation. Some blamed the NZ character, others colonialism and imperialism, partisans blamed their opponents, analysts blamed the politicians, politicians blamed the analysts, journalists blamed the tabloidisation of news ….the range of explanations ran the gamut.

Be they on the political Left or Right, time and time again these keen observers of and participants in NZ politics and policy-making, some with storied histories of commentary and involvement in the debates of the last 25 years, noted that NZ political elites continually re-invent the wheel, adopt quick fix or knee-jerk responses and plaster solutions to concrete problems, and generally go with the cheapest option regardless of the complexities and repercussive consequences involved. There appears to be no full appreciation of the consequences of any given policy decision (including the shift to market economics and adoption of a nuclear-free status), and whatever sucess NZ has in the global arena is more a product of luck and chance (fortuna) rather than strategic planning and foresight (virtu). The current government is no exception and in fact is considered by this select crowd to be one of the shining examples of the syndrome.

In the view of these participant/observers, the situation is compounded by the lack of political and policy talent available. Beyond those who move overseas, the problem is generally seen as a product of the dunmbing down of political and historical knowledge in schools, media disinterest in anything other than scandal, risk-adverse cultures and abject mediocrity within the public bureaucracy, a gross lack of intellectual acuity and political nous on the parliamentary backbenches, and a general attitude of the part of both policy bureaucrats and politicians that “she’ll be right” regardless of what they do. That, and a loss of ethics, principle and integrity amongst the NZ elite in general.

I invite readers to ponder and comment on this. Given the range of people I have spoken to, this is not just the comments of a small group of disgruntled personalities. At another time I will reflect on what was specifically said about those people and agencies involved in security policy–that the MoD is less than useless, that the NZDF is a bastion of short-sightedness and political ignorance, that the NZSIS is a politicised, vengeful, incompetent cesspit, that the EAB is worthless and deservedly ignored, that the Police are as much a problem as they are a solution to domestic security issues, that the advice of all of these agencies and others are routinely ignored by the politicians in government at the moment–the list of grievances is long but the consensus amongst the consiglieri is strong: NZ needs a serious change in political and policy-making culture if it is going to really “punch above its weight” rather than simply muddle along–or be relegated to the lower tiers of democratic capitalist development within the next ten years.

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Unmix these metaphors

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In the last couple of weeks the government’s pistons have started pumping. After a year’s worth of blue-boiler-suited (non-unionised) engineers making sure the sleek machine is primed and fuelled and oiled and ready for action, the engine has roared into life and is beginning to blow out a cloud of smoke in preparation for a screaming burnout. As it proceeds, the party has dealt its Labour opposition a decent hand of cards; you could say they’ve built a house of them, which the mighty engine is in danger of knocking down. After campaigning on a platform of returning integrity and effectiveness to the Beehive, the public are beginning to get an inkling that the emperor may lack a couple of vital articles of clothing.

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Returning to cards: the strongest card is the decision to mine the conservation estate, announced last year. Classic crony capitalism is shaping up to be the trump suit. The other cards: Hide‘s junket timed to coincide with a wedding; Harawira‘s trivial but more spectacularly mismanaged junket; Key‘s and McCully‘s mining shares; revelations that Brownlee lied about being lobbied by mining interests which would stand to benefit from his actions as a minister; attacks against Radio NZ which benefit Joyce‘s former business partners; attacks against ACC which benefit the insurance industry to which the party has well-known ties; and ministers Heatley, Brownlee and Groser who were pinged pinching from the public purse for their own private pleasure.

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Mining the conservation estate is the keystone of all this, the central peg on which the whole thing hangs — because the allegations cannot be denied outright, only explained. Particularly in the cases of Key and McCully’s shares, the value of the conflict of interest is irrelevant. It probably should be relevant, but it isn’t really: either there is a conflict of interest, or there isn’t. While there would be (much) more hay to be made from a large shareholding, that isn’t necessary to plant the seed of doubt in the rich loam of the electorate’s and the media establishment’s collective consciousness.

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Likewise the other issues: trivial, but they ring true and all riff on the same themes. Hide’s transgression was much more significant in actual material terms than was Harawira’s, but Harawira was punished much more harshly because he failed to recognise the symbolic matter in play: both required abject, cringing apologies. Key’s “sloppy” uranium shares, which he was “too busy running the country” to recall owning is reminiscent of John McCain‘s failure to remember how many houses he owned, for which he was rightly crucified by a country staring down the barrel of an economic crisis which would cost many people their only home. The smiling visages of the three ministers on the front page of the Dominion Post: the Minister of Economic Development who can’t be trusted with a credit card; the Fisheries Minister who likes to splash out on feeds of kaimoana for his mates and party hangers-on; the Minister for Climate Change Negotiations wining and dining the former National minister who was an integral part of the Copenhagen negotiation, and now heads the environmental branch of the OECD apparatus. And so on. These are symbolic issues, not matters of real actual wrongdoing. But the government can’t just dismiss them outright, it needs to argue the merits, and by the time you have to argue the merits on this kind of thing, you’ve probably already lost the symbolic battle. This sort of behaviour passes the public’s sniff-test about how they think about the National Muldoon gave us. And it fits the narrative of the modern Key/Brash-era Nats as wheeler-dealers, well-heeled fat-cats with a finger in every pie, feathering the nest for their secretive plutocrat mates. It brings to mind an iceberg, with the tiny, trivial transgressions peeking above a glassy surface which hides the monstrous mass below.

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The job of the opposition is to tie all this into a coherent story which people can understand and feel in their guts: a myth that trips off the tongue at the pub or in the line at the football, in the front seat of a taxi, sitting on the bus, standing around the water-cooler or in the smoko room — in as many variations as there are poets of the NZ electorate.

This post cannot end without a mention of the good work the folks at The Standard — particularly Eddie — have done toward assembling the blocks for this narrative pyramid. I am often critical of them, and their tendency toward partisan hackery frustrates me, but they do a lot of good work, and it shouldn’t go unrecognised. They’ve covered all the main aspects listed here, but they can only go part of the way: now is for the opposition parties and their allies to lurch into action. All the cards have not yet been dealt; the ace of spades may yet be seen. Although the raw material is all there, it won’t be easy writing this story — just ask Lockwood Smith, who only by dogged repetition and worrying away at the Taito Phillip Field bone managed to raise the electorate and media’s awareness of that actual and manifest case of political corruption. But this is the opposition’s job, and if they can untangle the metaphors and lay them out for people in simple, appealing, resonant terms, they will gain some traction. Then perhaps, they too will begin to belch smoke and fire, and roar down the road to victory.

L

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You are only as good as your opposition.

During the years that Labour was in government, I was appalled by the lack of serious discussion on security and defense issues (or any other issue, for that matter). Instead of asking hard questions of the government about defense policy, strategic focus, the military budget, reasons for the TSA,  Zaoui’s unfair inprisonement, the competency and purview of the NZSIS, oversight of police intelligence etc., National barked about petty scandals and personal pecadillos. Its strategy was to snipe from the sidelines, make no statements of policy or specific commitments to substantitive changes, and to wait until labour self-destructed and/or voters got tired of its incumbency and opted for change for changes sake. The strategy worked.

The irony is that now in opposition, Labour has not been successful at doing the same. That affords National the political space to continue to test the winds on issues like taxation, defense, educational standards, climate change and mining of national parks without firmly commiting to a course of action. It appears to be a strategy of policy by stealth osmosis: simply announce a proposal, let the pundits and informed public debate the merits, go with the flow and shift the specifics depending on how public opinion polling shows the response to be, or offer rhetorical placations while leaching through the opposition. In some cases (GST perhaps?) that may means abandoning the proposal entirely but in most cases it means saying one thing, speaking of compromise, but doing another without meaningful concession.

The irony is that by being so wishy-washy, National prevents Labour from making political capital out of its opposition. Although it seems to have tried to copy National’s playbook for the opposition–snipe, nag, whine but not commit to a policy or course of action that would directly confront National’s proposals in antithetical terms–which may be due to a belief that the first year in government belongs to the government, with the proper role of opposition being to offer no real alternatives until closer to election day, the strategy has failed Labour.

In an interview Selwyn Manning (of Scoop fame) noted that Key and his advisors could afford to do do policy reversals and utter vague, retractable promises because there was “no cabinet-in-waiting” on Labour’s side of the aisle. The insight is spot-on: with no quality opposition pressing hard, specific, technical questions in a number of policy areas on it, and with the  front and back-benches surrounding Phil Goff populated by lightweights or mealy-mouthed opportunists,  National has the luxury of being indolent. It is the default option, the easy way out, basking in the afterglow of the “anything but Clark” attitude of many in the electorate. Given the abysmal state of political reporting in general, and majority disinterest in, if not distaste for politics, this gives National a triple dose of insulation from sharp questions and better alternatives.

However, that may have begun to change. Evidence suggests that at least some voters who shifted their preferences to National out of a sense of fatigue with Labour, or who thought that National would be more moderate and pragmatic than dogmatic in its approach to policy-making, are beginning to reconsider their support for the Key government (including those who may still like Mr. Key personally).  That in turn offers an incentive to Labour to stop playing the attack poodle role in opposition and to develop some policy bite along with its bark. For that to happen, though, Labour needs a shake up in its ranks, not so much in its Leadership (after all, is there really an attractive alternative other than Mr. Goff?), but in the seats that have potential ministerial rank should they return to power. Best to do that sooner rather than closer to election time, in order to stake out an alternative policy platform that erodes National’s policy justifications while firming up the expertese and debating skills of the pretenders to cabinet jobs in a future Labour government.

NB: I write this after a week in NZ after a year-long absence. My thoughts are preliminary and driven by my alarm at the absence of serious policy discussions, or perhaps better said, the absence of coverage of policy discussions in the NZ media (the kerfuffle over Key’s stake in a uranium mining outfit being an example of political coverage that hammers the margins rather than the meat of its policy implications). That is either a sign of mass comfort or apathy (or both), none of which makes for an informed public and accountable government. After all, a government may only be as good as the quality of its opposition, but government and opposition are only as good as what the informed public demand. At this juncture, I see little public demand and limited quality depth in NZ political society.

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Scrambling for morsels.

I do not mean to be unkind, but does it not seem like John Key is gallivanting around the world looking to stuff his nose into major leader’s derrieres without substantive returns for his efforts? He claims to be exercising “leadership” and showing the flag at various and sundry conferences (recently APEC, now Copenhagen), but in reality he is an incidental player looking for a photo op. At the APEC meeting he did not have a single bilateral meeting with anyone of import–his breakfast handshake with Obama does not count. Heck, even other small players did not give him the time of day, and that much vaunted agreement to continue discussions about enlarging the Transpacific Partnership (TPP) was no more than a US delaying move while it sorts out trade issues with bigger regional players such as Malaysia and Indonesia (even if the P4 agreement involving Chile, NZ, Brunei and Singapore is used a possible model for the larger deal). In reality, NZ got nothing from the APEC meetings (the bilateral trade deals announced during the time of the meetings had already been finalised and the occasion was merely used to reveal that fact), and the way advanced economies are feeling the heat (no pun intended) over extending climate change controls in the midst of a global recession as of yet in course, the Copenhagen conference  looks to produce a lot of hot air and little concrete action.

Meanwhile political tensions in NZ are picking up, and in fact are the tip of a growing iceberg of social unrest that has seen recent divisions over race, corruption, social policy and cultural mores all hit the media front pages. Meanwhile Mr. Key burns a few carbon credits and gets his passport stamped every two weeks on his way to “summits” in which he has no real say, while Bill English actually runs government policy direction. As an example, think of the Don Brash’s 2025 recommendations–it was English, not Key who dismissed them as unreasonable, and Key has not voiced an opinion to the contrary (perhaps Mr. Key choose to be charitable to the guy he rolled). In fact, Mr. Key presents himself as Mr. Milquetoast–nary a hard word can be heard emanating from him regardless of the skullduggery happening beneath/over/behind him.

That makes  me wonder whether what we are seeing is a National version of the French system, where there is a figurehead president who does diplomatic work but has no real policy making power, and a PM who does the real business of governing. From the looks of things Mr. Key is National’s president, but it is Mr. English who pulls the strings of his globe-trotting puppet. This may be an unkind thing to say, but the more important question is whether it is untrue.