Masking Alone.

Posted on December 29, 2020 by Pablo

A while back I was talking to a friend about the reasons why I believe that the US has failed so miserably in managing the Covid-19 pandemic. Our starting point was the idiocy surround the “masks interfere with our freedom” argument. Besides the fact that with individual and collective rights come responsibilities resulting in all sort of public interest regulations that people routinely accept (seatbelts, bike helmets for children, protective gear in the workplace), or the fact that retail outlets and other private entities routinely demand dress standards (“no shoes, no shirts, no service”), the problem appears to be rooted in the dumbing down of the US public over decades coupled with the rise of alternative (often false and conspiratorial) sources of information. As some have mentioned, never before have we had so much information at our finger tips and yet never before have we been so ill-informed.

That means that it is not political polarisation per se or leadership incompetence in the Oval Office that conspired to impede effective public health crisis mitigation. To be sure, once the narrative–encouraged from the White House–became one of “freedom” and “choice” versus THE STATE, the debate about pandemic control was hopelessly lost to the nutters. Rightwing media pushing the “freedom” versus authoritarianism line made things worse. But beyond that, the deep-seated mistrust of government, scientific expertise, health authorities and collective good sense in the US is rooted in something far more pernicious than the MAGA Moron phenomenon.

That something is the the erosion and corruption of what I will broadly describe as “social institutions.” These are the civil and political society groups that, along with their distinctive cultural and ethical mores and norms, are considered to be the foundation of collective identity and, writ large, notions of nationhood. In 2000 Robert Putnam ascribed the hollowing out of American democracy to the loss of these institutions in his book Bowling Alone, where he uses the metaphor of the post-1950s decline of bowling (and bowling alleys) as evidence that US civil society, and along with it civic virtue, was/is in decline. He called this a loss of “social capital.” It is the loss of social capital that is the root cause of today’s US predicament.

I am aware of the many good critiques of Putnam’s book and so will just address and add to the notion that a decline in social institutions is a precursor to the type of political polarisation and social anomaly that exists in the US today.

First of all, Putnam did not adequately explain the relationship between the decline of “social capital” and the evolution of US capitalism over the last half century. The move from postwar industrial logics of production to increasingly service-oriented economics amid a technology-propelled globalisation of commerce and exchange was the main driver in the entrance of women into the commodified labor force amid the destruction of the industrial era social division of labor. Unions declined, part-time work became mainstreamed, two-income families became a necessity rather than a choice, automation and out-sourcing killed off entire industries, corporate savings declined while “leveraged” borrowing and debt increased –the list of changes is long. The US is now a military-industrial, high tech, highly automated service-oriented economy, and the strong industrial class lines that emerged before and after WW2 have now been broken into a small but unified class elite governing over dozens of post-industrial class factions divided by race, region, religion and (types of) recreation.

Income inequalities have increased exponentially since 1980. The US is now a country where the top one percent of income earners own 30 percent of the country’s wealth, more than the entire middle class. The dislocating effects of the economic shifts of the last half century are both broad and deep, extending from corporate cultures, small business practices to inter-personal affective relationships.

To that can be added the alienating effects of advanced telecommunications, particularly the introduction of mass computing technologies that obliterated the barriers between personal, private, public and corporate communications, entertainment and consumption. Take the notion of leisure. What used to be collective pursuits held in public group settings, such as bowling, gradually were replaced by more individualised pursuits done in private settings, like gaming. Profits from physical attendance at sporting or entertainment events have been eclipsed by those generated by televised coverage of the events. Plus, with wages increasingly compressed (again, the reasons are many) and work demands increased, people no longer had the time or money to commit to social networking significantly outside of work-related activities.

Here is a small example. After World War Two my father worked at the General Motors Overseas Corporation (GMOC) based in New York. GMOC was the international production and trading arm of General Motors Corporation based in Detroit. For legal and tax reasons it was a separate business entity from the domestic side of the business, with its top management holding selected senior positions in the overall umbrella structure of the Detroit-based firm.

Back in those days my father was no senior manager. Instead he started as a mailroom clerk and worked his way up. He met my mother, a secretary, at GMOC. During the entire time that he was at GMOC, before he took a job in Argentina and GMOC New York was dismantled and integrated into the Detroit parent company, he played sports for GMOC teams. Baseball in the summer, basketball in the fall and winter, softball in the spring and bowling year round. He and my mom met in Central Park where the outdoor games were held and either had picnics or went out to eat after the games were finished. In colder weather they met in gyms and at the lanes to do variations of the same. When I was very young I was brought along to share those moments along with my parent’s colleagues and young families.

After we moved to Argentina my Dad continued to play softball for a GM team that was established there. It played against other automobile and oil companies (Ford, Chysler, Esso and Shell) and some local Argentine teams keen on improving their skills against US competition. Meanwhile, even before GMOC was reorganised and relocated to Detroit in 1971, the corporate athletic leagues in New York City began to decline as per Putnam’s observation. Younger employees moved to the suburbs rather than live in the buroughs, family pressures and commuting infringed on the time available to play ball, and by the end of the 1970s the entire network of NY corporate sports associations was on life support.

There have been attempts to resurrect or replace these Leagues with mixed success. The point is that their decline was driven not by changes in cultural mores alone but by the irresistible forces operating in production and in the social division of labour that grew out of them.

Even so, cultural mores have been at play in the decline of social capital in the US. The hyper-competitive drive that pushed the evolution of US capitalism has resulted in the emergence of what I think of as a “survivalist alienation” ethos coupled with a liability mentality. People increasingly see each other as competitors rather than colleagues, much less comrades. They abdicate personal responsibility in favour of “other-blaming.” An entire industry–personal injury litigation, aka ambulance chasing–has been built on these twin pillars. This leads to a form of collective narcissism that one might call “hyper-individualism:” it is all about me, me me.

This turn to the self is cloaked in a vulgarisation of social discourse evident in pop culture but extending much beyond it. Even sports have coarsened: cage fighting and scripted wrestling have moved from the fringe to the centre of profit-making athletics.

The impact is seen in what is left of social institutions. The phenomena of raging soccer moms and fighting baseball dads are so common that sports field security for pre-teens is required for insurance purposes and sideline rage has entire social media channels dedicated to it. Little kids now preen and strut, mock their opponents, and generally behave like the lumpenproletarians they see in professional sports. What this amounts to is a rot from within, where the pure soul of sport is carved out and replaced by something far darker.

Likewise, be it in bridge clubs or local volunteer fire departments, the US has seen both declining numbers and declining civility within social institutions. That is the social capital that is being lost. Horizontal solidarities have consequently been disrupted while vertical socio-economic disparities have increased. People are atomised in production and increasingly isolated in civil society. That leads to political alienation and dysfunction, making the terrain, as Gramsci said, “delicate and dangerous” and ripe for “charismatic men of destiny” to stamp their imprint on it. Trump and his GOP minions have done exactly that.

It occurs to me that the dislocating effects of capitalist production in its post-industrial phase coupled with a coarsening of popular discourse in the US lie at the root of the decline in social institutions/social capital that Putnam described, which in turn facilitated political polarisation, media stratification and a retreat into comfortable idiocy on the part of many citizens. That prevented any united approach to pandemic mitigation because the atomising and centrifugal forces at play were (and still are) multiple, overlapped, intertwined–and antagonistically reinforcing around the lightening rod that is the 45th president.

To this can be added two other American pathologies: lack of historical memory and the cultural predisposition towards the “quick fix” rather than more long-term, drawn out and measured responses. The lack of historical memory is not just about the 1918 so-called “Spanish Flu.” It is about any disease, from polio to SARS. Very little in the Trump administration, city or state responses was grounded in historical reads of previous disease eradication efforts (what references were made had mostly to do with case and death statistics, not to the progression of and specific mitigation efforts against the disease). Instead, when not a complete shambles of denial and blame-shifting such as that of the White House, what passed for containment policies were drawn from contemporary experiences around the globe. Even successful Obama-era public health campaigns were derided on partisan grounds. That might not have been problematic in places where the response initially worked, but given that Covid-19 has moved into second- and third-wave mutations, it was no panacea over the longer term.

This wilful lack of historical references is compounded by the American penchant for the “quick fix.” Rather than put on masks, practice social distancing and suffer short term economic deprivation for longer term gain, many Americans preferred to live their lives as usual, without precautions, bleating about their “rights” and “freedom” while they waited for a vaccine to be developed. Here too the lack of historical memory hurt, because many simply did not believe the experts when they said that, based on experience, a vaccine was a year or more away from being developed. As it turns out, vaccines have been developed and rolled out in less than a year, which is truly remarkable. But the disease moved deeper into society as winter came, and now 1 in very 1000 Americans (335,000) have died of it before the vaccine is broadly available. Cases are nearing 20 million and by the time the vaccine is widely available the estimates are that at least 10 million more will be infected and 400,000 American will be dead. Not surprisingly, both the prevalence of the disease and access to vaccines is marshalled along socio-economic class and ethnic lines.

In sum, the wretched excuse of the US pandemic response is the culmination of a long period of decline that is founded on the erosion of social institutions and loss of social capital caused by the evolution of the US mode of production. To be sure there are other intervening variables and factors at play in the cultural and political milieus that contributed to the disaster (because that is what this is–a human disaster in both cause and response). But in the end the problem of the US pandemic response was not one of public health failures but one of US capitalism and its social and political superstructure.

Hence the need during this holiday season for Americans to mask alone.

The military is no quarantine panacea.

Posted on June 18, 2020 by Pablo

A word of caution: the military is not a quarantine panacea.

At least 60 NZDF personnel have been on quarantine patrol duties since April 1, and yet breaches of the restrictions on physical contact occurred. What is more, the NZDF presumably has its own testing regime in place (for its personnel, primarily–there were at least 7 NZDF cases reported by April–but also as part of the overall quarantine testing regime) and yet no NZDF tests were administered at quarantine sites as far as I can tell. In addition, the NZDF record on transparency is poor. It has a record of coverups and whitewashes (e.g Operation Burnham). So yes, it has the legal authority (under the Epidemic Notice and National Transition Period legislation, which invoke assistance clauses in the Defense Act and/or Section 66 of the Civil Defense Emergency Management Act ) and logistical capacity to improve quarantine restriction enforcement, but it is an open question as to whether it will perform better or report honestly on its mission given its track record. It is folly to simply punt the task of enforcing the quarantine to the NZDF and expect things to automatically get better.

There also seems to be more to the move than meets the eye. In retrospect, it now seems plausible that the Navy crowd control exercise undertaken last week was oriented towards more than overseas deployments (as should be expected and as I had suggested earlier) and raises the possibility that the government knew that things were amiss in the quarantine regime well before the breaches were made public, and yet suppressed that information. There is much to unpack here.

Let’s leave aside what the Health Ministry may or may not have known about quarantine breaches, where in the chain of command did the failures to effectively enforce the quarantine restrictions occur, who made compassionate exemptions without testing, and why anyone in a position of authority would cover up the possibility that a lethal disease had escaped isolation. Instead, given that the quarantine regime is now under military control, questions should be asked as to why that step was needed. For example, why are the police not being used to enforce these quarantine restrictions on freedom of movement of NZ citizens, residents and visitors? Are they understaffed?

This is what the government says that the new quarantine boss, Assistant Defense Force Chief Air Commodore Darren “Digby” Webb, will undertake and what his powers include. First, a”start-to-finish audit” of the existing systems and written protocols at the border. To do so he will have access to the country’s military logistics and operational expertise. Then, if required, he can bring in military personnel to help run the facilities, and make any changes to further strengthen border defences. That is quite a broad mandate.

It also raises more questions. First, Air Commodore Webb replaced former Police Commissioner Mike Bush a few weeks ago as quarantine czar and was in charge when two women who later tested positive for CV-19 were granted leave from quarantine without being tested. Will granting him more authority improve his decision-making or was he hamstrung from the start by MoH officialdom and/or protocols? Second, if 60 NZDF personnel could not stop breaches of the quarantine regime, how many more will be needed to do so? Third, what is Air Commodore Webb’s relationship vis a vis the Health Minister and Director General of Health in light of the above? Can he pull rank on them or is he, and his handling of the health cordon, bound by civilian Human Resources regulations and other non-military protocols when it comes to non-military personnel under his control and supervision? Fourth, even with emergency legislation enabling the deputisation of the military in this instance, is the military bound by the Human Rights Act and other provisions protecting the rights of those detained, or are those quarantined to fall under military law or a mix of military and civilian law under the emergency powers conferred to it?

Normally, when the military is assigned a mission, it develops in advance of deployment an operational plan that includes specific targets and objectives, then marshals resources, prepares logistics, musters personnel, and stages in wait of the order to proceed. In this instance none of that appears to have happened other than the Navy crowd control exercise (if indeed that had a quarantine-related aspect). Instead, Air Commodore Webb will undertake a “comprehensive” audit of quarantine protocols and procedures. Given that he has been on the job for a while, it is surprising that that review did not begin immediately after he replaced former Commissioner Bush. It also means that any military response is still in the making unless planning and preparations have been done unannounced and unnoticed.

There may be simple answers to these questions that clarify the chain of command and rules of engagement in the revamped quarantine regime, and I welcome any clarifications to that effect.

I shall ignore the sideline whinging and bleating coming from the opposition and rightwing commentators. This was the crowd that after initially welcoming the “go early, go hard” approach to the pandemic, started to yelp about lifting the lockdown and re-opening the economy by the end of April. The fools includes university charlatans like the Auckland University VC, who initially claimed that prohibitions on returning students from China were due to “racism,” and more recently cried economic dependence on foreign tuition as an excuse to let them back in, only to have China now enveloped in a second wave of infections–including in the capital city. This, from a guy who is supposedly the leader of a university from which many of the epidemiologists who advise the government come from! Perhaps he should take his golden parachute, fade back into the vapour and leave authoritative talking to others.

Having said that, we cannot dismiss the fact that the two ladies who were allowed out of quarantine on compassionate grounds may be the tip of an infectious iceberg. Something went wrong and it is possible that several people were involved and errors were made throughout the Health Ministry hierarchy that contributed to it. That needs addressing and remedying. Responsibility must be assumed, and if merited disciplinary action must be taken. One easy step would be to offer the resignation of the hapless Health Minister as a sop to the braying Opposition donkeys while moving someone competent into the role (admitting that David Parker may be still in his job because he is instrumental in the DHB re-structuring project).

Whatever the case, it is not entirely clear that a knee jerk move to “bring in the military” is going to rectify whatever went wrong. It might, but the specific ways in which having uniforms lead and run the quarantine regime are a matter of observable action, not blind faith.

A matter of definition.

Posted on May 16, 2020 by Pablo

Recent reports have surfaced that hospital officials in some US localities are inflating the CV-19 death count by classifying anyone who dies in their care who is not the victim of an accident or other obvious non-viral cause as a CV-19 victim. Apparently this is because the US public health scheme, Medicaid, pays hospitals USD$5000 per non CV-19 death versus USD$13,000 for CV-19 related deaths. Most hospitals in the US are private, for profit entities so the hospital administrators (not doctors) who do the paperwork submissions to the federal government for Medicaid death reimbursements have financial incentive to falsify the real causes of death.

There is no independent body above hospital administrations regularly overseeing how cause of death in hospitals is classified unless some gross error comes to the attention of local and state authorities, and there is no way for the federal government to unilaterally challenge the legitimacy of CV-19 death claims. Moreover, since local coroners are swamped by an influx of CV-19 dead and Medicaid is stretched to the breaking point by the upsurge in (legitimate) CV-19 claims, there is little way to hold the dishonest hospital administrators to account unless a whistleblower from within a hospital provides concrete proof of institutional malfeasance.

In contrast, official Russian statistics show that there are over 263,000 cases in the country, with nearly 2.500 deaths and new cases exceeding 10,000 per day. That death count has raised eyebrows outside of Russia, as it is remarkably low when compared to other countries given the number of cases and rate of infection.

Russian officials counter the skeptics by claiming that their definition of a CV-19 death refers only to those that can be directly attributed to the pathogen. They deliberately exclude other causes that are exacerbated by CV-19 contagion, such as heart failures and smoking-related pulmonary embolisms, liver failures etc. Because of this the Russian CV-19 mortality rate is not only very low but also does not disproportionately affect the elderly, whose deaths are most often attributed to the underlying condition rather than to CV-19.

These differences in reporting remind me of an incident that happened to me when conducting research in Brazil in 1987. I had an interest in national health administration because I had worked on that subject when conducting Ph.D. dissertation research in Argentina earlier in the decade, I lived in Rio at the time and had experienced Carnaval in February, when thousands of sex tourists of every persuasion descended on the city in the middle of what was clearly an AIDS epidemic (in a cultural context where men refused to use condoms because that was considered “unmanly” and in which many (usually) straight men used Carnaval as an excuse to enjoy gay sex). Around that time I had to donate blood for my then-wife to use in a blood transfusion after she picked up a water-carried blood infection while cleaning vegetables and because we were told that most of the blood supplies in Rio were infected with both AIDS and syphilis, so I was acutely interested in how health authorities dealt with the convergence of viral calamities.

I managed to arrange an interview with a senior official in the Health Ministry in Brasilia, one who just happened to be involved in infectious disease mitigation. As part of our conversation I asked him how many AIDS cases there were in Brazil. He said “100.” I laughed and said “no, seriously, how many cases are there because I just came from Rio during Carnaval and it was a 24/7 bacchanal of unprotected sex, drug use, drinking, dancing and other assorted debauchery, plus I am told than the blood banks are unreliable because the supplies are infected with AIDS and syphilis.”

He smiled and leaned back in his chair for a moment, and then said “you see, that is where my country and your country are different. In this country a person gets the AIDS virus, loses immune system efficiency, and eventually succumbs to an infectious tropical disease such as malaria or dengue fever. We put the cause of death as the tropical disease, not AIDS. In your country a person gets AIDS and eventually dies of a degenerative disease such as a rare thyroid or other soft tissue cancer. Since they otherwise would not have likely had that cancer, your health authorities list the cause of death as AIDS. For us, the methodology for defining cause of death is not only a means of keeping the official AIDS count low. It also keeps the foreign tourist numbers up because visitors are not fearful of contracting AIDS and have much less fear of malaria or dengue because those are preventable.” I asked him what he thought about those tourists who did contract AIDS while in Brazil on holiday. He replied “that is a problem for their home authorities and how those authorities define their cause of death.”

I recount this story because it seems that we have entered a phase in the CV-19 pandemic where definition of what is and what is not has become a bit of a hair-splitting exercise that has increasing levels of political spin attached to it. It opens a Pandora’s box of questions: Is the lockdown approach overkill? Is the re-opening too soon? Are the overall US CV-19 death figures inflated because of the structural imperatives layered into their health system? Are the Russian figures underestimated because of their politics or because of their accounting methods? Has the PRC lied all along about the extent of the disease before and after it left its borders (in part by assigning different causes of death than CV-19)? At what point do honest medical professionals assign primary cause of death to CV-19 rather than an underlying condition?

There is one thing that I am fairly certain about. In Bolsonaro’s Brazil, I have little doubt that the rationale I heard in 1987 is still the rationale being used today, except that now it is CV-19 rather than AIDS that is the scourge that cannot be named.

Between push and shove.

Posted on May 6, 2020 by Pablo

The NZ government’s handling of the CV-19 pandemic has won international praise for its decisiveness and effectiveness. It is hard to argue with a response that has reduced the number of daily reported transmissions to near zero and the death toll to less than two dozen out of 1500 total cases. Not bad.

But as could have been expected, there are those who are not happy with how the government has comported itself on the matter. There has been much whinging about restrictions on movement during the stage 4 lockdown, and now there is much moaning about ambiguous rules governing shopping, “bubble” expansion and easing of travel restrictions. It seems that some people will simply never be satisfied even if the international community stands in awe of what NZ has accomplished.

There appear to be three types of complainants. The first are the serial whiners. These sorry folk just like to bitch and moan about anything. They do so more as trolls rather than out of partisan spite or informed concern and are best seen as losers. They shall be ignored in this discussion.

The second group are the public health advocates. These include medical professionals, educators, some service sector providers and others who feel the government is moving a little too quickly when lifting the quarantine restrictions on commerce. They believe that the disease must be eradicated or at least its transmission reduced completely before the lockdown is lifted. For them, the current Level 3 restrictions are an invitation to transgression and indeed, that is what has happened in many instances. Some people simply ignore the fact that Level 3 is not about social movement but about gradually getting businesses going again in a limited way. Hence beaches and parks, trails etc. swelled in the days after the move to Level 3 with mindless or selfish opportunists who either ignored or did not understand that Level 3 was not supposed to be an invitation to resume the party.

Public health advocates push for the continuation of restrictions and hence are dissatisfied with the government’s liberal easing of the lockdown after just a month. They want a longer and more complete quarantine as per Levels 3-4, with no imminent move to Level 2. For them, the matter is a public health issue first and foremost, with all economic considerations secondary to that fact.

On the other side are what can be called the profit over people crowd. They are those who demand that the restrictions be lifted yesterday and that the country get back to business as usual as soon as possible. Level 2 cannot come too fast for them and the sooner that NZ gets back to Level 1 normality the better as far as they are concerned, no matter how many get sick or die. They whine about jack-booted government intrusion on their liberties and rights and, while happy to take emergency funds from the government when it suits them, also decry its meddling and interference in their economic affairs. These type of complainants include most of the political opposition and assorted commentators who have been provided media platforms well above their intellectual station. Among this crowd utilitarian logics and lifeboat ethics 101 abound, but the selfish is also strong, as is the self-servingly stupid.

Whatever the specific reason, here economic security comes before public health concerns.

It is understandable that small businesses fear that a prolonged suspension of trade will destroy their livelihoods, and I do not include them in this dichotomy. But the hypocrisy of big corporate players and their political and media acolytes is shameful. Of course there are exceptions to the rule, but the overall attitude of many NZ capitalists appears borne of self-interest rather than solidarity. And unlike the public health advocates, who span a range of political persuasions, the profit over people folk are clearly of the rightwing persuasion. That is not surprising.

I admit that these are very crude categorisations and that I have painted things in broad strokes. That was done as a preface to my larger point, which is to note that, because it is unable to satisfy either the public health advocates or the profit over people crowd in the measure that each wants, the government is actually doing the right thing. It is striking a pretty fine balance between the two sides, and its pragmatic incrementalism demonstrates a good understanding of the scientific, economic and political realities in which it operates.

In the end, NZ’s response has been quintessentially democratic. Not because the pandemic emergency response committee is chaired, at the government’s behest, by the Leader of the Opposition. Not because it has allowed for full throated criticism of its actions and used its emergency (coercive) powers very selectively and discretely. Not because it put science above partisanship and politics when addressing the threat. Not because the Prime Minister and Director General of Health fronted daily press briefings for over a month and answered in clear, honest and humane fashion everything that was pitched their way, including inane questions with little relevance to the NZ situation (such as whether it was advisable to ingest disinfectant as a cure). Mostly, because its balancing approach encapsulates the essence of democracy as a social contract: it is not about everyone getting everything they want all of the time, but about everyone getting some of what they want some of the time. In other words, it is about settling for mutual second-best options.

That may not be always the case in NZ and democracies elsewhere. But it is what has been done in this instance. Beyond the positive statistics of the policy response itself, that is the most significant and enduring achievement to come out of this crisis: a reaffirmation of democracy as a contingent sectorial compromise on a grand scale.

Thinking of a post-pandemic future.

Posted on May 2, 2020 by Pablo

I was recently invited to participate in an international teleconference on post-pandemic futures. It has a NZ-centric focus but involved distinguished participants from overseas, including former high level government and private sector officials. Discussions were held under Chatham House rules so I cannot get into particulars, but I am writing here as a reflection on what I heard.

Above all, I took away two troubling thoughts. The first is that the discussion was entirely elite-focused, with much talk about trade regimes, supply chain dynamics, attracting foreign direct investment, scientific diplomacy, political leadership characteristics and competition, plus other things of that sort. The second take-away was the nearsightedness of many of the discussants, particularly those representing the private sector. In a nutshell, they just want to get back to business as usual.

I made some remarks that attempted to amplify the context in which we are operating. I will elaborate on them here.

The CV-19 pandemic is an inflection point in a longer trend involving the intertwined crises of national and international governance and models of accumulation. It has exposed the dark contradictions in both. These must be addressed if the world is to emerge a better place. But there is a broader backdrop to this trend that needs to be understood before we get into unpacking its component parts.

The international system is in the midst of a long transition. It has moved from a tight bipolar configuration during the Cold War to a unipolar construct in the 1990s and an emerging multipolar system after 2001. The emerging system is characterised by the interplay between ascendent and descendent great powers, the emergence of non-state actors as key international actors (both irregular and corporate), an erosion of international norms and rules, and the resultant presence of conflict as a systems regulator. The underlying ideological consensus that dominated international relations from the end of World War two until the last decade, that being the notion of a liberal order where the combination of democratic government and market-driven economies was seen as the preferred political-economic construct, has eroded to the point of marginality.

In its wake has re-emerged the concept of realpolitik or power politics, whereby nation-states and other international actors pursue their interests above all things and do so with the resources at their disposal relative to the countervailing powers of others. This does not always mean that might makes right because not all resources are coercive. Some are persuasive, which helps distinguish between so-called “hard” power (coercive, be it economic, military or diplomatic), “soft” power (persuasive), “smart” power (a mixture of both) and “sharp” power (coating coercive intent in a persuasive argument or approach).

Over the last two decades several great powers have emerged or re-emerged, while the lone 1990s superpower, the US, has declined. This is seen in the fact that while superpowers intervene in the international order for systemic reasons, great powers do so for national reasons. One only needs to view the US inability to prevail in regional wars and then turn towards economic nationalism, populist politics and away from support for alliances and international organizations to see its descent. Meanwhile, pretenders to the throne and others have emerged: China, Russia, India, Japan, Germany in the forefront, but other regional contenders also in the mix (Indonesia, Brazil, South Korea, France and the UK, perhaps Iran and Turkey as part of lesser constellations).

The issue is not so much who these specific emerging powers are but the fact that they are moving the international system towards multipolarity. Given its relative decline, there is little that the US can do about this even if it attempts to reverse the trend (assuming that it recognises what is happening). And yet, the contours of the future system will not conform to the specific interests or designs of the emergent powers within it. Much like Adam Smith’s invisible hand of economics, it is the aggregate of power dynamics during the transitional moment that will give precise shape to the global future. A new balance of power will emerge, but it remains unclear as to its exact configuration or stability.

That is the broader backdrop to the global crises of governance and models of accumulation. As macro and micro-cosmic reflections of this larger reality, national, regional and international governmental organisations have been sidelined and/or undermined by a combination of forces. Some are internal, such as the ossification of agencies due to corruption and self-interest. Others are external, such as rapid and sudden migration trends resulting in ideological and racial backlash in recipient countries. Whatever the combination of factors, the crisis of governance is seen throughout liberal democracies as well as many authoritarian regimes (even Singapore!) and international organisations like the EU, WHO, WTO, SEATO, OAU, OAS and UN. Many of these agencies are seen as toothless at best and bastions of patronage, nepotism and corruption at worst. Above all they are mostly seen as (and many are) ineffectual and inefficient in discharging their mandates.

The decline in quality of political governance is paralleled and matched by the increasingly obvious contradictions of the global model of accumulation. Commodity supply chain concentration, hyper-specialisation, just-in-time production, “race-to-the-bottom” wage competition, and other features of the globalisation of production, consumption, supply and exchange have produced increased inequalities and fractures in the world social division of labour. Hyper-concentration of wealth in the so-called “one percenters” has happened on the backs of the global poor, who now extend well into what used to be the middle classes of advanced liberal democracies. Again, the US provides an example with its charity food lines and millions of unemployed (rising to 20 percent of the work force and over 30 million unemployment claims lodged in just three months) as a result of the pandemic. The US situation is particular dire because most private health insurance is tied to employment, so the loss of jobs is measured in both declines in income as well as health coverage.

This is what the pandemic has done. It has exposed in dark relief the ugly side of the global market. It has also glaringly revealed government incompetence and indifference on a global scale. These two pathologies have now combined, and the results are being felt by common people, not elites. This could well be the moment when the Liberal Order dies, killed by a disease whose spread was, in a bitter ironic twist, facilitated by its success.

That is why getting back to “normal” and business as usual by returning to the status quo ante will not work, and where short-term solutions will not suffice. That only staves off the inevitable, which is that the dual crises will continue to compound and deepen as they head towards a circuit-breaking outcome. Phrased differently, it appears that what students of social revolutions call the tension-release model is now well in play: there is a slow build up of accumulated tensions punctuated by episodic outbreaks of disorder or discontent, culminating in a cathartic moment in which the old system is destroyed and a new one–however unclear in its precise contours–begins.

If the root causes are not addressed, the next explosion of mass discontent will be precipitated by any number of calamities, man-made or natural: resource conflicts caused by draught, flooding, famine or competition over access to increasingly precious natural resources like fresh water; mass migrations tied to the above; great power war; civil war; sectarian and irredentist violence; pollution- or climate-caused environmental catastrophes; wide spread urban destruction caused by earthquakes, eruptions, hurricanes, thrones, cyclones or tornados; energy provision failures; and more pandemics. This list is not exhaustive.

It is not as if there has been no warning that things cannot hold. From the 2000 “Battle of Seattle” to the Occupy Wall Street demonstrations later that decade, to the Arab Spring of the early teens to the protests in places like Chile, France and Lebanon last year, there has been a slowly rising tide of resistance to politics and economics as given. The protests are not just about one or the other but are in fact about both: systems of governance and systems of profit and their influence on each other.

The malaise is wide-spread. The US and UK are polarised, India is riven by sectarian tensions, Arab oligarchies remain closed but under increased popular pressure, despotic politics have taken hold in Brazil, Hungary, Eastern Europe, Central Asia, the Philippines and Turkey under electoral guise, sub-national actors challenge sovereignty in a host of Sub-Saharan states and even the seemingly monolithic regimes in China and Russia are riven by internal tensions and political intrigue. The world stands at the brink of a valley of transition where the costs of change are real but the outcome is uncertain.

Returning to normal, at least if it is defined as the way things were before the pandemic hit, is a guarantee that the socioeconomic and political contradictions now laid bare will fester, accumulate and eventually explode. That is an outcome few would want. This is why the post-pandemic moment must be seen as a window of opportunity for comprehensive change rather than a resumption of what once was.

In order to avoid an explosive break with the past, the key to post-pandemic recovery lies in addressing the dual crises of governance and accumulation as the most important priorities even if short term economic and political remedies are offered (say, by removing Trump from office, turning to regional supply chains and re-committing international agencies to a rules-based international order). I cannot offer any specifics, but it seems to me that a move towards sustainable development based on restrained rates of profit and renewable resource extraction is a beginning. Given the resurgence of wildlife in urban and suburban areas and air and water cleansing during the lockdown, climate change mitigation efforts need to be wrapped into larger projects of environmental restoration in which a return to natural balance is given urgent attention.

These involve political reforms in which those who advocate for a return to the previous economic status quo are blocked from doing so. After all, there are many interests vested in the current global market framework and they will do everything in their power to resist and thwart meaningful change that undermines their positions and diminishes their bottom lines. The key is to find a consensus about reforming, if not an alternative to, the system as given, including the reconfiguration of incentive structures in order to promote broad adherence to the shift in the global model of accumulation.

The future will be multipolar. The question is whether it will be stable or unable, sustainable or exploitative, multilateral or parochial, driven by self-interest or concern for the collective good. The overall process of transition to multipolarity is immutable, but the specific features of the future system will be defined for better or worse by human agency. It remains to be seen if the opportunity to recast the world in a better image will be seized.

Given what I heard at the online meeting, I am not sanguine about the prospects of this happening. It is easier to go back to what is known than venture into the unknown. The forces pushing for a return to the status quo are many and powerful. But the pandemic has pulled away the layers of mystification and false consciousness that heretofore obscured the intense exploitation, class cleavages and unrepresentative politics that lie at the root of the modern global edifice/artifice.

It is time for economic and political architectural re-design on a world scale.

A pandemic Peter Principle.

Posted on April 9, 2020 by Pablo

In 1968 Canadian sociologist Laurence Peter coined the phrase “Peter Principle” as a contribution to the sociology of organisations. It explains that in complex organizations people rise to the level of their own incompetence. That is, they get promoted so long as they meet or exceed the specified criteria for and skill set required of a particular position until they eventually reach positions for which they do not have the aptitude, skills or qualifications to continue advancing. Hence a floor manager in a retail outlet may advance to warehouse manager and perhaps regional supply supervisor but then meets the ceiling of his/her competence in handling more complex tasks required for further advancement up the managerial chain of command.

Because Peter was interested in organisational efficiency, he advised training programs for individuals as they progressed upwards. This raised the “ceiling” of their incompetence, which he believed promoted efficiency in corporate decision-making. His views have been very instrumental in organisational sociology and have been applied in numerous contexts beyond the corporate world.

One thing that is relatively under-studied is the specific factors that reveal incompetence. Because the Principle is offered as a broad theory it assumes that at certain points a level of incompetence will be reached, but does not address the specifics of what conditions, duties, responsibilities and other criteria comprise the “ceiling” or end point at which the level of incompetence is reached in given instances. This is an undervalued aspect of the Principle because different organisations and management levels have different responsibilities and skill set requirements as well as criteria for advancement. Moreover, the Principle may, depending on context, be influenced more by extrinsic rather than intrinsic factors. The tired “Mad Men” era joke about choosing between two secretaries, the one in which the more attractive individual is chosen regardless of qualifications, illustrates the point. The broader question is what factors contribute to determining a level of incompetence according to the Peter Principle? In this essay I extend that thought to the impact of CV-19 on global management responses.

In short, what the pandemic has done is to expose managerial incompetence at a global level. To be sure there are instances of competency is handling the disease, but what is most striking is the sheer number of and decisional sites in which incompetence has been exposed.

Let’s start with the easily identified fiascos. The US leads by negative example, but the UK and Brazil run a close second when it comes to turning a public health threat into an omnishambles of preventable deaths. Italy and Spain have a lot to answer for in this regard, and the Morrison government in Australia is not immune from the incompetency virus. This is different than in places where inadequate resources, human, technological and medical, prevent adequate responses to the infectious spread. In such instances people know what to do but simply do not have the tools with which to do it.

Then there are the sub-national and non-governmental Peter Principled. Around the globe church leaders demand that they be allowed to congregate their flocks within their houses of worship. This may well be a form of divine intervention in which a specific type of Darwin Award candidates are culled from the population, but it seems to me that as a human enterprise this is up there on the incompetence scale. Likewise and closer to home, the responses of Auckland universities has been a blinder. The VC of the more famous one wrote an op ed shortly before global infection numbers exploded saying that any quarantine or border control efforts was discriminatory against Asian students, then demanded a government bailout for the lost tuition revenues generated by those students (so it was not about discrimination or student health after all). This ethics-challenged Einstein is one of NZ’s highest paid “public servants.” Go figure.

The lesser known institution cancelled its classes near the mid-term break and decided, thanks to the advice of an “education theorist” who apparently has never taught a real class, to start all over and move to an on-line “block” teaching format in which students lost all of the work they had completed until then and in spite of the fact that the technological capacity of the university to host mass on-line distance learning was sketchy at best and in many instances unavailable to lower income students with limited access to on-line services. Then, after much hue and cry, the university reversed its decision two weeks into the lockdown and after having its teaching staff drop their original course preparations and quickly devise block style on-line presentations. Not only did this undo all of the staff effort put into ginning up block style courses, it left different faculties with a smorgasbord of half-competed courses and missing assignments that cannot be fully recovered. Yet the genius who thought up the block “surprise” and the VC who ordered it into effect (then not) continue to hold their jobs.

Similarly, the Trust monopoly in West Auckland reduced the number of stores where liquor can be purchased, as well as the number of hours that the stores are open and the number of items (six) that can be purchased at any one time. What it did not do was remove distilled spirits from the shelves, something that was problematic because all hard liquor outlets outside of the Trusts jurisdiction in West Auckland are closed and supermarkets are forbidden from selling anything other than wine and beer. With the “one out, one in” entry policy in place, this was a recipe for disaster as hundreds of out-of-zone punters showed up to buy hard liquor in Trust stores, causing huge crowds who, to say the least, are not always adhering to safe distance guidelines. The efforts to take names and addresses at the doors was an exercise in futility that only added to the waits. After more than a week of complaints, hard liquor was pulled from Trust shelves, and the “one out, one in” policy has been modified so that store employees gather items for customers waiting at the till. The long queues remain.

In short: in the face of pandemic restrictions the Trust leaders decided to limit stores, hours and purchasable quantities but invited an increase in customers from outside the Trusts monopoly zone by neglecting to consider the spill-over effect of hard liquor outlets closures in the rest of the city. Win!

At a more individual level, there is the case of NZ Heath Minister David Clark, who breached the quarantine in order to take his family to a beach, and then use his branded electorate van to take his mountain bike to a popular trailhead before going on a ride. One could argue that this is another example of political Darwin Award aspirations, except for the fact that Clark has no background in medicine or health matters and was actually a Presbyterian minister who held assorted public service jobs before entering parliament. Yet somehow he got bumped up the chain to the Health portfolio, only to fail to understand a cardinal rule of ministerial politics: optics are more important than actual knowledge of the policy area being managed. In any event, it appears that the Peter Principle should have applied earlier in Mr. Clark’s political career, but for some reason the Labour Party decided to extend his shelf life until he became an embarrassment. That was an avoidable mistake.

There is the US Navy response to a plea from the commanding officer of one of its Pacific-based carriers to help off-load CV-19 stricken sailors in Guam (there were more than 150 cases among the 4800 sailors on board when he made his plea). The CO resorted to writing a letter to 20-30 senior uniformed officers in and outside his chain of command when he could not secure the cooperation of his immediate superior (a Rear Admiral who still is the Strike Force Commander of the seven ship carrier group) or of the Pacific Fleet commander (another Admiral) to quickly off-load the sick personnel. Apparently, these superiors and the civilians staffing the highest ranks of the Navy Department were more concerned about disclosing operational details (that the ship was in port with a pandemic in it rather than at sea in the Western Pacific) then in protecting the health and welfare of the sailors on board the carrier. The end result was that the Acting Navy Secretary, a Trump appointee, relieved the CO of his duties (a career ender for a much decorated and loved officer, who has been diagnosed with CV-19 himself) saying that he had compromised national security by sending the letter out over an insecure email system (the .mil system). He then flew, at a cost of over US$250,000, out to the carrier, got on the CO’s bridge microphone rather than address the sailors directly, and proceed to insult and disparage the CO as “naive” and “stupid.” He used a number of profanities while doing so, including a few F bombs for good measure. He then returned to DC, was summoned by Congressional Armed Service committees to explain his actions, initially stonewalled, then played the victim of a media beat-up, only to eventually apologise and resign. All in the space of 5 days.

There is an irony in this particular Peter Principle at work. Having the strongest symbol of US military power, a nuclear powered aircraft carrier, crippled from within and idled in port pleading on deaf bureaucratic ears for relief for its sailors, is symptomatic of a much broader malaise in US military and political society. In the past five years the US Navy has seen two negligence-caused fatal ship crashes, accusations of war crimes against its elite commandos, the Fat Leonard corruption scandal involving dozens of senior officers, a number of high profile sex scandals amongst flag ranked officers and delays and irregularities in procurement and commissioning of the next generation of warships. And yet, besides some convenient scapegoats forced into retirement or court-martialled, zero institutional changes have been made to the way in which it operates, especially with regards to promotions into leadership positions. It is as if there is a Peter Principle pandemic at work throughout US Navy leadership circles!

There are many, many more instances of the Peter Principle at play throughout the world. President Jair Bolsonaro of Brasil could have an entire encyclopaedia written about his dumbassery and recklessness, including denying that CV-19 is anything more than a seasonal flu that his political opponents (including those who have previously supported him) have exaggerated for partisan reasons, and urging his followers at mass rallies to to ignore local quarantines and congregate in churches to pray for immunity (there again, you have that religious/idiocy nexus, now floating up to national level politics). He is not alone but the point should be clear: there is a whole lot of incompetence being exposed by this pandemic.

One can argue that what I have described is not so much the application of the Peter Principle on a global scale thanks to the pandemic, but instead mere stupidity, evil, venality and opportunism brought onto display by it–and that is not just confined to Trump. It can also be argued that the Peter Principle cannot be applied to politicians who are elected on things other than merit, or (in the case of authoritarians) for purposes other than the common good. These are reasonable counterpoints but what is different, I think, is that the pandemic has unveiled the gross incompetence of so many “captains” of industry, government and civil society, be they in transportation, logistics, sports, education, local politics, the military and a host of other endeavours.

One can only hope that once the pandemic subsides, there will be a clearing house effect on managerial elites throughout the world, preferably in concert with a return to sustainable economies and environmental protection efforts that, as I mentioned in an earlier post, allow us to live equitably within our means as members of local, national, regional and global societies.

But even then the question will remain: can such a transition remove the Peter Principle as an organisational feature in the future? Methinks not.

A test of civil society.

Posted on March 28, 2020 by Pablo

The CV-19 (COVID) pandemic has seen the imposition of a government ordered national quarantine and the promulgation of a series of measures designed to spread the burden of pain and soften the economic blow on the most strategically important and most vulnerable sectors of society. The national narrative is framed as a public health versus economic well-being argument, with the logic of infectious disease experts being that we need to accept short term pain in the form of social deprivation and loss of income in order to achieve long term societal gain once the infection has run it course. However, some business leaders argue that a prolonged shut-down of the productive apparatus will cause irreparable harm to the national economy out of proportion to the health risks posed by the pandemic, and thereby set back the country’s development by twenty years or more.

The lockdown is a classic test of the age old philosophical question behind the notion of the “tragedy of the commons:” Should we pursue the collective good by accepting self-sacrifice in the face of an invisible threat and uncertain common pay-off, or do we pursue immediate self-interest and opportunism rather than accept material and lifestyle losses amid the same uncertainties and invisible rewards? Needless to say, it is not a straight dichotomy of choice, but the poles of the dilemma are clear.

Another thing to consider is a principle that will have to be invoked if the disease spreads beyond the ability of the national health system to handle it by exceeding bed and ventilator capacity as well as the required amount of medical personnel due to CV-19 related attrition: lifeboat ethics. If the pandemic surpasses that threshold, then life and death decisions will have to be made using a triage system. Who lives and who dies will then become a public policy as well as moral-ethical issue, and it is doubtful that either government officials or medical professionals want to be placed in a position of deciding who gets pitched out of the boat. So, in a very real sense, the decisions made with regard to the tragedy of the commons have serious follow up effects on society as a whole.

One thing that has not been mentioned too much in discussions about the pandemic and the responses to it is the serious strain that it is placing on civil society. Much is said about “resilience” and being nice to each other in these times of “social distancing” (again, a misnomer given that it is a physical distancing of individuals in pursuit of a common social good). But there are enough instances of hoarding, price-gouging, profiteering–including by major supermarket chains–and selfish lifestyle behaviour to question whether the horizontal solidarity bonds that are considered to be the fabric of democratic civil society are in fact as strongly woven as was once assumed.

There is also the impact of thirty years of market economics on the social division of labour that is the structural foundation of civil society. Along with the mass entrance of women into the workforce came the need for nanny, baby-sitter and daycare networks, some of which were corporatised but many of which were not. Many of these have been disrupted by the self-isolation edict, to which can be added the shuttering of social and sports clubs, arts and reading societies, political and cultural organisations and most all other forms of voluntary social organisation. Critical services that rely on volunteers remain so rural fire parties, search and rescue teams, the coastguard and some surf lifesaving clubs are allowed to respond to callouts and maintain training standards. But by and large the major seams of civil society have been pulled apart by the lockdown order.

This is not intentional. The government wants the public to resume normal activities once the all clear is given. It simply does not know when that may be and it simply cannot spend resources on sustaining much of civil society’s infrastructure when there are more pressing concerns in play. The question is whether civil society in NZ and other liberal democracies is self-reproducing under conditions of temporary yet medium-termed isolation. The Italians hold concerts from their balconies, the Brazilians bang pots in protest against their demagogic populist leader, Argentines serenade medical and emergency workers from rooftops and windows. There is a range of solidarity gestures being expressed throughout the world but the deeper issue is whether, beneath the surface solidarity, civil society can survive under the strain of social atomisation.

I use the last term very guardedly. The reason is because during the state terror experiments to which I was exposed in Latin America, the goal of the terrorist state was to atomise the collective subject, reducing people to self-isolating, inwards-looking individuals who stripped themselves of their horizontal social bonds and collective identities in order to reduce the chances that they became victims of the terrorists in uniforms and grey suits. The operative term was “no te metas” (do not get involved), and it became a characteristic of society during those times. At its peak, this led to what the political scientist Guillermo O’Donnell labeled the “infantilisation” of society, whereby atomised and subjugated individuals lived with very real fears and nightmares in circumstances that were beyond their control. Their retreat into isolation was a defence against the evil that surrounded them. Today, the threat may not be evil but it is real and pervasive, as is the turn towards isolation.

I am not suggesting that there is any strong parallel between state terrorism in Latin America and the lockdown impositions of democratic governments in the present age. The motivations of the former were punitive, disciplinary and murderous. The motivations of the latter are protective and prophylactic.

What I am saying, however, is that the consequences for civil society may be roughly comparable. Many Latin American societies took years to reconstitute civil society networks after the dictatorial interludes, although it is clear that, at least when compared to advanced liberal democracies, the strength of democratic norms and values was relatively weak in pretty much all of them with the exception of Uruguay and Costa Rica. Yet, in places like NZ, democratic norms and values have been steadily eroded over the last thirty years, particularly in their collective, horizontal dimension.

The reason is ideological: after three decades of imposed transmission, market-driven logics vulgarly lumped together as “neoliberalism” are now a dominant normative as well as structural trait in NZ society. The country has many, if not more hyper-individualistic self-interested maximisers of opportunities in the population as it does those with a commonweal solidarity orientation. Lumpenproletarians populate both the socioeconomic elite as much as they do the subaltern, marginalised classes. Greed is seen by many as a virtue, not a vice, and empathy is seen as a weakness rather than a strength.

The ideological strength of the market-oriented outlook is seen in business responses to the pandemic. In NZ many want bailouts from a government that they otherwise despise. Many are attempting to opportunistically gain from shortages and desperation, in what has become known as “disaster capitalism.” Some try to cheat workers out of their government-provided wage relief allowances, while others simply show staff the door. Arguments about keeping the economy afloat with State subsides compete with arguments about infectious disease spread even though objectively the situation at hand is first a public health problem and secondly a private financial concern.

The importance of civil society for democracy is outlined by another political scientist, Robert Putnam, in a 2000 book titled “Bowling Alone.” In it he uses the loss of civic virtue in the US (in the 1990s) as a negative example of why civil society provides the substantive underpinning of the political-institutional superstructure of liberal democracies. Putnam argues that decreases in membership in voluntary societies, community associations , fraternal organisations, etc. is directly related to lower voter turnouts, public apathy, political disenchantment and increased alienation and anomaly in society. This loss of what he calls “social capital” is also more a product of the hyper-individualisation of leisure pursuits via television, the internet (before smart phones!) and “virtual reality helmets” (gaming) rather than demographic changes such as suburbanisation, casualisation of work, extension of working hours and the general constraints on “disposable” time that would be otherwise given to civic activities as a result of all of the above.

The danger posed by the loss of social capital and civic virtue is that it removes the rich tapestry of community norms, more and practices that provide the social foundation of democratic governance. Absent a robust civil society as a sounding board and feedback mechanism that checks politician’s baser impulses, democratic governance begins to incrementally “harden” towards authoritarianism driven by technocratic solutions to efficiency- rather than equality-based objectives.

The current government appears to be aware of this and has incrementally tried to recover some of the empathy and solidarity in NZ society with its focus on well-being as a policy and social objective. But it could not have foreseen what the pandemic would require in terms of response, especially not the disruptive impact of self-isolation on the fabric of civil society.

It is here where the test of civil society takes place. Either it is self-reproducing as an ideological construct based on norms and values rooted in collective empathy and solidarity, or it will wither and die as a material construct without that ideological underpinning. When confronting this test, the question for NZ and other liberal democracies is simple: is civil society truly the core of the social order or is it a hollow shell?

Given the divided responses to this particular tragedy of the commons, it is hard for me to tell.

Living within our means.

Posted on March 24, 2020 by Pablo

Years ago the Argentine sociologist Carlos Weisman wrote a book titled “Living within our Means.” It was a critique of Argentine society that focused on the paradoxical question of why, in a land of plenty, there was so much economic instability, inequality, corruption and political turmoil. His conclusion was basically that natural wealth produced indolence and greed: the vast natural resources in Argentina could be exploited inefficiently and without regard to the future, money was siphoned off of productive sectors into all sorts of nonproductive or money wasting enterprises ill-suited for the economics and demographics of the country, and the surpluses generated by the productive sectors (agriculture and mining in particular) could not only line the pockets of those lucky enough to control the means of production but could also be used to buy off subordinate group consent via State benefit distribution derived from minimal taxation on the export-oriented sectors that generated the bulk of the countries GDP.

His most important observation was that Argentines, so accustomed to an economic system that generated wealth in spite of itself, were living beyond their means. The State sector grew bloated, workers lost sight of the connection between productivity and wages, capitalists hoarded, spent and perfected the arts of tax dodging and capital flight, and politicians used patronage and public goods as a means of currying electoral favour, only to have the military step in from time to time under the pretence of putting things right but in reality only to shift benefits of political control to their civilian allies.

New Zealand is not quite as pathological, but for some time I have seen parallels with Argentina in that it appears that the country has, for at least two decades, been living beyond its means. Think of the so-called export sector.

Traditionally, “export sector” means those business that sell their goods overseas, to foreign clients. In NZ that historically meant agriculture (including cattle and sheep farming) mining, forestry and fishing. More recently, high tech value-added industries like software development have been layered into the export mix. But so too have industries like tourism and foreign language and tertiary education. Yes, tourism and educational services for foreign students are classified as “exports” in NZ even though all of the revenue generated and GDP share provided by these services are domestic in nature. Unlike traditional exports, other than some transportation companies, none of the economic activity associated with either industry is generated from abroad (say, via the sale of goods).

There is something insidious about this. Thriving in a largely unregulated environment, tourism surged. Adventure tourism, adrenaline tourism, hobbit tourism, backpacker and freedom camper tourism, glamour tourism, death tourism (trophy hunting) etc. all exploded even thought the infrastructure required to handle them was insufficient or non-existent. Likewise, dodgy fly by night language schools popped up catering to foreign students as young as high school age, and universities lowered admission standards and course requirements in order to attract unqualified foreigners who were willing to pay enrolment fees up to five times higher than domestic students. It did not matter that these foreign student often wound up as the victims of unscrupulous education “brokers,” local employers, hosts and homestay providers. That was fine because the business owners and senior managers operating these industries were rewarded handsomely for their efforts even if their contributions were not, to be clear, really advancing the productivity of NZ society. Both of these industries saw the foreigner’s dollar as their cash cow and soon became dependent on it. So long as the State got its share of tax revenues, all was hunky dorey as far as the economic-political elite was concerned.

A clear case of a non-traditional “export” that does more harm than good is the cruise line business. These floating Petri dishes used to be pretty scarce in NZ ports but now are now commonplace eyesores from the Bay of Islands to Akaroa and Milford Sound. They are seagoing pollution generators with dodgy labour and hygiene practices that disgorge thousands of clueless leisure lovers onto our shores to watch hokey “cultural” shows, go sight-seeing (including to active volcanoes) on fossil fuel vehicles and buy trinkets and baubles from money-grubbing vendors who otherwise could and should be providing services to their communities. What domestic benefit is derived from them is surprisingly narrow in scope, and yet they continue to come in increasing numbers–at least until CV-19 revealed them for what they are when it comes to public health risks.

Even traditional sectors like fisheries and dairy have come to rely more on export markets than on domestic consumption for their well-being, pushing unsustainable growth, environmental degradation, species destruction and oligopolistic market concentration. Uncoupling commodity pricing from domestic wage levels, some agricultural staples have been priced out of the range of most local consumers while a greater percentage of quotas and production are oriented towards foreign buyers. The situation has become so unbalanced in some sectors that, for example, given a drop in Asian demands due to the CV-19 pandemic, fishermen find it more economical to dump crayfish back into the ocean than sell them in the domestic market. Asian demand for cut wood has dried up, leaving huge surpluses in holding lots that are not being released into the domestic market. The price of many wage goods, consumer non-durables and staples is now set by international markets rather than by local demand, thereby narrowing the range of basic goods purchasable by the average NZ consumer.

In light of this, we might see the arrival of the Coronavirus (CV-19) as a great corrective on the national excess. The first industries to shut down are the ones that really should not have grown so large in the first place: tourism and tertiary education. These have been readily followed by service sectors associated with tourism and foreign students, including accomodation and food service provision.

Now the entire country is poised to “shelter in place.” With the government ordering mandatory closures and shut downs as it ramps up its response, primary and secondary schools have closed and a multitude of service providers have switched to at-home work or temporary closures. Soon a full scale lockdown will be imposed.

Essential industries and core state services continue to operate–transportation, food provision, emergency services, law enforcement, telecommunications, waste disposal, etc. Note that if we strip out the non-essential industries that are now shuttered or curtailed, we have a much smaller overall economic footprint yet a larger State presence within it. That is not necessarily a bad thing.

After years of market-driven logics that among other things pushed the kind of excesses described herein, the State is reassuming its role as macro-manager of the economy and direct provider of public goods and strategic production. Prudent financial management that protected surpluses “for a rainy day” allow the current government to ease the burden of pain inflicted on the working population by CV-19. It can also provide the material basis of an economic re-ordering on grand scale. One can only hope that, thanks to the pandemic, the era of down-sizing and privatisation has been proven to be a false promise when it came to national well-being and prosperity, and that it is replaced with a new economic logic that emphasises the importance of the social relations of production as much as the relations in and control of production itself.

There is one more component to this smaller, “natural” economic footprint: small businesses. The NZ economy runs on small business production and services. From metal working shops to plastics manufacturers, furniture makers and tradespeople, NZ has a middle sector in between the big agro-export corporates and State Owned Enterprises and private-public partnerships. The difference between them and the bloated tourism and tertiary education sectors is that they actually produce things of tangible value that benefit domestic society, not the degree-chasing aspirations or Instagram ambitions of foreigners.

The combination of big exporters, State sector and small businesses, one might say, is the critical component of NZ society. Not tourism, not foreign student education, not bars, restaurants, sports and other forms of mass entertainment. These can be resurrected when the pandemic has passed, but this moment of crisis demonstrates where value is created and preserved in NZ society. And it is not with hedge funds, sports teams, video game arcades, waterfront restaurants with space for tips on their service bills, ski resorts, golf courses or heli-tours.

Needless to say, this is a broad brush depiction of the economy of excess in which we live. There are bound to be fine details that prove the exception to the rule such as it has been depicted here. But the gist is clear: NZ has, as a result of the market-oriented experiment of the last 30 plus years created a entire range of parasitic/opportunist capitalism that contributes relatively little of value to the domestic economy or to the population at large. It is this sector that needs to be excised thanks to the arrival of CV-19.

Calls for self-isolation are getting more forceful as the government ramps up its pandemic threat advisories. This type of quarantine is a form of physical separation based on notions of collective solidarity (and not a form of social distancing, as pundits have called it). People retreat into their homes out a sense of collective responsibility and empathy for others, hoping to weather the worst of the pandemic in order to flatten the curve of its distribution. Here again, the burden of sacrifice is borne by small producers, public servants and waged labour, most of whom do not have access to the type of savings or surpluses that allow the corporates to ride out the storm.

It is these people that deserve government financial relief. Not the corporates or those in the bloated, non-essential and non-productive (in a value-added or material sense) sectors of the economy. Not those in parasitic financial sectors and non-traditional export industries. Not sports leagues and yachties.

In the end the CV-19 pandemic is not only a massive corrective to the world and NZ societies, demonstrating the dark and largely ignored side of the globalisation of production, consumption and exchange. It is more than an economic belt-tightening across the globe. It is a moment for pause and reflection on what living within one’s means really means in practice. For NZ, it means that the time has come to drop the growth is good mantra in certain non-critical sectors of the economy and to refocus energy and resources on those that comprise the economic triad underpinning the good society: “traditional” exporters, small businesses and the State-Owned and public/private enterprises that are the core of the national productive apparatus. This may require major adjustments in all three components, especially in the export sector (to include its very definition), but the moment has arrived thanks to the externality known as Coronavirus.

That result may be a smaller economy than what came before CV-19, but it will be more sustainable, efficient, value-generating and ultimately fairer for NZ society as a whole.

A tipping point for the dotard?

Posted on March 16, 2020 by Pablo

I guess that we should see the silver lining in the CV-19 pandemic. It has finally done what no political opponent could do. It has fundamentally undermined Trump’s credibility and that of the science-denying elements within the GOP and rightwing media. The important aspect of this is that the loss of credibility is evident in a private sector that otherwise was willing to cast a blind eye on the Trump/GOP corruption and buffoonery so long as the latter advanced business interests via deregulation, tax cuts etc.

Now that Trump’s incompetence has been fully exposed, as has that of his immediate advisors and sycophants in and around the White House, private businesses, state and local governments are taking action in defiance of his original bluster and denials. Led by their owners, elected officials and high level managers, entire sports have cancelled or postponed seasons, universities and school districts have closed, cities and states have ordered mandatory quarantines and numerous mass events have been abandoned. Even the military has acted against his original commands, instead opting to listen to military doctors and other experts about the effects of CV-19 on troop concentrations (such as cancelling military exercises and forbidding all domestic travel for service personnel). This, in response to what Trump initially called a politically inspired hoax and to which the GOP/media science deniers decried as the product of partisan hysteria and media manipulation. The fact that private businesses have led the defiant response is especially telling. No lefties among them.

The ineptitude and incompetence of the Trump administration is not only shown in its delayed response and original denials and deflections. The order to institute a ban on all travellers from Europe–done by the same people who crafted the Muslim ban attempted shortly after Trump was inaugurated–was done without forewarning to airlines, airport authorities and local law enforcement, much less the traveling public, American as well as foreign. No contingency plan was crafted, much less enacted, leaving federal border control agencies such as Customs, Immigration, Border Patrol and TSA short-staffed and undermanned in the face of a surge of last minute mass arrivals before the ban commencement date. Additional CV-19 health screenings deployed at the same time has resulted in chaos at airports of entry, with thousands of passengers stuck for hours in baggage returns and lined outside passport control stations (again, manned by federal employees). The result has been a clusterf**k of epic proportions.

Although he has been tested and cleared after being exposed to the virus, Trump may still fall ill because the test only measures one’s status on the test date. If that happens, he becomes a candidate for Article 25 removal from office since he is physically unable to perform the functions of president (which was the original intent of the framers. I shall leave aside jokes about his mental competence but let’s just say that his addled blathering about the pandemic does not inspire confidence). I have a feeling that if he gets sick, those in the GOP who secretly loathe him will have their knives out, because his gross negligence and inaction in handling the response will have election consequences for the party as a whole later this year. Seriously, if the predicted thousands of deaths and job losses and billions in productivity losses resultant from the botched initial response and the chaotic catch-ups since then actually happen, given the now open news that the Trump administration eliminated key public health agencies and replaced public servant scientists with lackeys, then the makings of an election disaster are looming large over the GOP’s political future.

Until now, the GOP’s 2020 election strategy was to ride Trump’s coattails as hard as possible. In the wake of CV-19 that seems politically suicidal. And if GOP politicians start to distance themselves from Trump in their campaigns, the possibility of intra-GOP fratricide becomes more likely. In fact, it is likely that factions are sharpening their knives as I write, with the pro-Trump crowd developing plans to delay the elections or smear anti-Trump politicians as traitorous during a national emergency. For their part, the anti-Trump faction will attempt to convince the public that they did all that they could to prevent him from doing more harm to the Union. That will be a tough sell, but so to will be any argument in support of Trump’s handling of the crisis.

The real trouble for the GOP starts if the pandemic lasts in the US for months, well into the post-convention campaign season (which starts in July). If the death and sick toll mounts to anything close to what is being predicted and job losses increase while businesses shut down, then perhaps even hardened MAGA morons will re-consider their support for the imbecile-in-chief. Even if they do not, undecided and independent voters could well draw the conclusion that enough is enough while the previously apathetic who did not vote in 2016 may finally realise that their votes do in fact count when it comes to national leadership selection. None of this bodes well for the GOP in November.

Perhaps there is a goddess after all. Her name is Mother Nature, and in this instance all she had to do is to let human folly advance her work. That may wind up being a painful but necessary political blessing for the US regardless of who wins the Democratic presidential nomination.

Inviting trouble?

Posted on March 3, 2020 by Pablo

Over the next few weeks New Zealand will host two major international sporting events involving hundreds of athletes and spectators gathered together in iconic settings. The gun goes off on Ironman NZ this upcoming weekend in Taupo, and then a week later the World Surf League (WSL) hosts the inaugural Piha Pro surfing competition in the namesake West Auckland seaside town. Ironman NZ will have 1500 competitors at the starting line, and the Piha Pro is said to attract, along with a highly competitive international field of surfers, up to 25,000 spectators during finals weekend (the competition runs for one week). The events are considered to be economic boons for the local communities as well as excellent ways of popularising the Kiwi “brand” around the world.

As a former surf lifeguard who lives near Piha and who spent nearly twenty years doing triathlons (including Ironman NZ), I can attest to the fact that events such as these are very important to those who engage in such sports. I have seen the energy generated by mass competition events and well understand why people are enthusiastic about supporting them. But this year there is something else added into the equation, one that has forced me to put on my day job hat as a someone involved in the risk management business: coronavirus.

Both Ironman NZ and the Piha Pro will bring athletes from all over the world, including countries with coronavirus outbreaks. They will by flying in on what are essentially long metal cigar tubes with recycled air, often on flights of 8 hours or more. Many of these athletes will bring family, friends and other support crews. Likewise, the organisers of these events–both Ironman and the WSL are international firms headquartered abroad,–basically act as a traveling circus, bringing in equipment, machines and staff and hiring local providers to do the same as part of the set-up process. All of these people mingle in close quarters in the days leading up to, through and after the event, and when not at the venues themselves populate the restaurants, bars, hotels, motels and rental accommodations near them.

What makes this issue a bit trickey is that the virus is not only spread by human-to-human contact but via contact with contaminated surfaces, be they plastic, metal, glass or wood. The incubation period is two days to two weeks in humans, but the surface contamination longevity is thought to be much longer. Infrared disinfection is considered the best way of treating contaminated surfaces but that requires resources and knowing which surfaces to treat.

Interestingly, the fitter one is nearing a long-distance triathlon, the more an individual’s immune system becomes depressed. This has to do with rigours imposed on the body by long-distance swimming, cycling and running for months at a time before the race, which is why a so-called “taper” is used whereby athletes gradually back off on training starting two weeks before race day. Surfers do not have quite the same problem, but for many in the WSL time is spent as much traveling as on the water, which also wears on the body.

And now they all get on those flying Petri dishes and head to Auckland.

Out of curiosity I have looked into the specific coronavirus contingency planning around these events. The bottom line is this: there appears to be none. It seems that neither the organisers or the district councils involved have drawn up plans for what happens in the event that someone involved in the competitions comes down sick with the virus. General guidance is provided by the Ministry of Health, to which councils can refer. Auckland Council offered this:

“At this stage Auckland Council is monitoring advice from the Ministry of Health and Auckland Regional Public Health. There is guidance for event organisers and attendees on their website below: https://www.health.govt.nz/our-work/diseases-and-conditions/covid-19-novel-coronavirus/covid-19-novel-coronavirus-information-specific-audiences/covid-19-advice-public-events-and-mass-gatherings. We’re aware that some community-led events are being cancelled by their organisers â€“ they have their own reasons for making that decision and is entirely up to them. The current advice weâ€™re relaying is for Aucklanders to take care of themselves and their families and follow health expertsâ€™ advice. Organisers and attendees should keep an eye on the health authoritiesâ€™ websites for any new/changed information.”

That is the general advice given throughout the country. I was unable to find anything by the Ironman Corporation or WSL on coronavirus contingency planning for the New Zealand events, even though some Ironman-branded races have been cancelled or postponed in Asia because of the pandemic. The WSL has been silent on the subject in general even though there have been questions in the surfing community about whether the Olympics to be held in Japan at the end of July will go on if the pandemic deepens in Japan and/or spreads further (with surfing making its debut as an Olympic sport). Ironman New Zealand makes no mention of the disease in media announcements or on its website.

I assume that the insurance underwriters for these events have taken stock of the odds and given the green light for them to go ahead. That is certainly good news for everyone involved. But I also fear that the unique circumstances particular to these competitions might be inviting trouble, and that if it is left to participants, spectators, organisers and local communities to sort things out as per the general guidelines should the coronavirus arrive in their midst, then a public health emergency might occur.

Then again, having just become a naturalised Kiwi, rather than contingency planning and preparation for the possibility of trouble, I can always fall back on the belief that at the end of the day, “she’ll be right.”

Kiwipolitico

Tag Archives: CV-19