Tag: Foreign policy/affairs

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Does New Zealand have a Strategic Culture?

Given the pacifist tendencies of many KP readers, the question in the title of this post may seem unusual and of little importance. Little attention has been paid by most public media, much less the Left-leaning ones, to the issue of strategic culture both in general and with specific reference to Aotearoa. My interest in the subject has been sparked by my current book project, where I try to analyse the post Cold War security politics of three “peripheral” democracies: Chile, New Zealand and Portugal. Among other things that I have discovered as part of the project, it appears that there be no, or at least different conceptualisations of, a unique kiwi strategic culture. Let me elaborate on both the subject and the specifics of this.

Strategic culture refers to the security perspectives, traditions, institutions and behaviour of a country. Although it has often been confused with it, strategic culture is more than just a military war-fighting tradition. It is more than a diplomatic posture. It encompasses the full array of security concerns, from intelligence-gathering techniques and priorities to trade orientation and diplomatic alliances, that make up the larger framework with which policy-making elites perceive the strategic environment in which they operate.

As an example of one dimension of strategic culture, let us look at the core feature with which it is most often confused: war-fighting tradition. Much has been written about different cultural and national “styles” of warfare, be it, among others, Arab, American, Australian, British, Chinese, German, French, Israeli or Russian.  Some emphasise mass over maneuver, others prefer tactical flexibility to centralisation of command, and still others prefer deception and stealth across ill-defined fronts rather fixed lines of combat in well-demarcated battle spaces. The array of war-fighting styles also extends to unconventional or guerrilla war-fighting—urban guerrilla warfare is not the same as rural insurgency, nor is the ratio of ideological-psychological work to kinetic operations the same in all contexts. Although there is plenty of overlap in all war-fighting styles, each is a unique adaptation, based on terrain, culture, technology, organisational capacity, leadership characteristics and the ethno-religious and national make-up of the fighting forces involved, as well as the ideologies that justify what they are fighting for.

The question thus begs: does NZ have a distinct war-fighting tradition? If so, what are its characteristics? Whatever the answer, that is only part of the picture.

That is because strategic culture involves geopolitical perspectives and geostrategic orientation, institutional morphology and historical practice. Countries with large land masses and multiple borders see things differently than do island states.  Countries with ample resources and robust economies of scale in value-added manufacturing conform their approaches to trade and security differently than resource poor agro-export platforms. Countries with on-going territorial, cultural or political disputes tend to “see” threats differently than those that are not encumbered by such conflicts. Countries governed by authoritarians often perceive things differently than well-established democracies. So do countries with long histories of warfare (internal as well as external) when contrasted against countries with peaceful internal histories and little involvement in foreign wars.

Domestic political dynamics over time, as well as specific histories of military and diplomatic alliances, also impact on the specifics of strategic culture.  The number of variables is larger and more varied than this, but the point should  be clear: strategic culture is a product of national character molded by historical practice, current political dynamics, institutional framework and geopolitical context.

In highly simplified fashion the equation looks like this: strategic culture—> geopolitical orientation—> geostrategic perspective—> threat environment assessment and contingency planning—> security force orientation—> force composition—> force staffing, training and equipment—> force deployment and operations. This includes intelligence and police services as well as the military, because it includes internal and external security roles. The most important thing to note is that strategic culture is the point of departure for all that follows; absent a strategic culture there is little basis for a coherent strategic vision over time , which in turn impacts negatively on all of the other variables arrayed along this particular chain of causality.

Which brings up the point of this post: does NZ have a distinct strategic culture? One of the things that emerged during my discussions with numerous observers during my visit to NZ in February and March was an unspoken consensus that NZ does not have a strategic culture to call its own. This is in part a product of the apparent ad-hoc approach to policy-making I mentioned in a previous post. But it also appears to be rooted in organisational dysfunction and incompetence as well as a dependence on foreign patrons for strategic guidance. Many of the most informed people I spoke with were openly derisive of the competence and vision of the MoD, NZDF and NZSIS leadership, particularly the civilians that ostensibly provide the MoD, NZDF and NZSIS with policy guidance (the name Mark Burton was mentioned more than once as absolute proof  of how ineptitude can still find its way into the upper echelons of security policy-making). Plus, advancement within the security bureaucracies is seen as being tied to toeing both the (incumbent) party line as well as the extant corporate culture, however misinformed or dysfunctional they may be. Thus, even though there are futures forecasting shops in various security agencies, very little is actually forecast that the bosses do not want to hear or read, and most of what is forecast is make-work destined for annual reports rather than designed to serve as a basis for strategic planning over the medium term.

The same accusation has been made of the plethora of security agencies that have emerged since 9/11, which may be in part why the National government has made the decision to convert the External Assessments Bureau into a National Assessments Bureau with oversight authority over the whole lot. But the latter does not indicate a move to develop a defined strategic culture. It is just an attempt to impose some form of managerial rationality on the intelligence-security combine in order to overcome areas of duplication, overlap and turf battles.

There was also the view expressed that when it comes to security, NZ has traditionally looked to Australia, the US and the UK (in the current order) for strategic guidance rather than develop a distinctive strategic culture of its own. This is believed to be a result of NZ dependence on these countries (and others, such as France) for military equipment and training and intelligence flows. But NZ has a distinctive approach to things like nuclear disarmament, non-proliferation and peace-keeping, so surely that is reflected in a unique perspective on the external security environment and the role that NZ should play in it. Here again, my supposition that NZ has a distinct way of viewing things from a security perspective was contradicted or dismissed by the knowledgeable interlocutors with whom I spoke. Yet I remain unconvinced that their skepticism is fully warranted. Surely there is an appreciation of the need for a uniquely Kiwi approach to strategic affairs?

Which leaves me with my opening question. I know that Chile and Portugal have distinct strategic cultures that informs the way in which they engage the post-Cold War world on security matters. These distinctive strategic cultures give them coherency and predictability when construing threats, organising their security forces and engaging in security planning. Can we say the same thing for NZ?

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Dissecting North Korean Madness.

Forensic evidence examined by three independent experts confirms what was suspected all along: the 1200-ton South Korean frigate Cheonan was sunk on March 26 by a North Korean torpedo while cruising in South Korean waters near their common maritime border, with the loss of  46 lives. Not only were traces of RDX (a military grade explosive whose chemical signature can identify its source) found in the salvaged wreak. Pieces of the torpedo itself have been recovered, including the propeller assembly and housing. The finger of guilt points heavily in Pyongyang’s direction. A secretive commando unit with direct links to Kim Jung-il, unit 586, is suspected of staging the attack using a mini-submarine as the launching platform (since such platforms would be harder to detect using standard anti-submarine detection methods). The fact that Mr. Kim awarded the commander of Unit 586 with his fourth generals’ star in a ceremony held shortly after the attack is seen by some analysts as proof of its involvement as well as Mr. Kim’s direct authorisation of the attack.

The question is why would the North Koreans do such a thing? Admittedly, they have a track record of unprovoked attacks on South Korean targets, including a 1967 attack on a South Korean navy vessel that killed 39 sailors, a 1987 bombing of a South Korean airliner that killed 118 people, an attempted assassination of the South Korean president during a state visit to Burma in 1983, plus a series of bloody naval skirmishes dating back to 1999, including an incident last year when a North Korean gunboat was heavily damaged, with loss of life, in a confrontation with South Korean naval forces. Some argue that the torpedoing was simply an act of revenge over this last incident, but it appears that there is much more at play than immediately meets the eye.

The North Korean torpedo attack is alarming because the two Koreas technically remain in a state of war. The 1953 armistice is not a peace treaty, so a state of war continues to exist between the two countries in spite of the episodic thawing in relations between them. That serves as both the justification for the attack as well as a major source of concern. Usually a cross-border raid into a sovereign nation’s territorial waters during peace time that results in an unprovoked attack on a military vessel would be construed as an an act of war deserving of commensurate, if not overwhelming response. But since the two countries are already in a state of war, each is free to pursue aggression as it sees fit. That has resulted in a (mostly one-sided) low intensity conflict between the two states for the last 57 years, and is why US forces are stationed in and around the demilitarised zone (DMZ) that constitutes their common land border (US troops in the DMZ serve as a “trip wire” in which an attack on them will trigger the US security guarantee for the South Koreans, meaning direct US military involvement in the response).  Thus the North Korean torpedo attack is just a continuation of an on-going limited war rather than an outright declaration of war. Even so, it is an outrageous provocation and therefore runs the risk of escalating into something bigger.

South Korean public outrage demands blood in revenge, yet in practice South Korea has few options at its disposal. North Korea has already declared, with its usual bluster, that any military response will be met with “all-out war.” Although North Korea does not have the capability to launch a nuclear strike in spite of its efforts to build an effective nuclear arsenal, it does have ample capability to launch significant missile attacks on Seoul and other parts of South Korea as well as beyond (to include Japan and US bases in Okinawa and the Western Pacific). It also has a Chinese security guarantee to match the American compact with its southern neighbour. That means that a South Korean military response runs the risk of escalation into high intensity conflict that could lead to both security guarantees being invoked, thereby forcing a US-China confrontation. It is not in either power’s interests to see this happen, so pressure is on South Korea to not call North Korea’s bluff and retaliate in kind. Yet, most analysts agree that no response will only embolden the North Koreans and result in further incidents with a greater potential for escalation. Hounded by this dilemma, South Korea has so far limited its response to calling for UN Security Council condemnation of the attack, something that so far has not occurred.

Shadow warriors and covert operations specialists point out that more discrete means of retaliation are available that can make the South Koreans’ point just as effectively. All that is needed is patience and planning in the execution of a discrete mission against a select target. But even this approach needs to factor in the motivations of the North Korean regime in staging the attack, because understanding of its rationale can better inform the response not only of South Korea, but of its allies and the larger international community as well.

It appears that the attack was staged as a result of divisions within the North Korean hierarchy over the issue of leadership succession. It was more than just an “unfortunate incident” resultant from miscommunication or misreading of intent. It is clear that Kim Jung-il is on his last legs after a series of strokes and other ailments. Thus the jockeying for position as heir to the Kim throne is now reaching fever pitch, with hard-liners and soft-liners attempting to out-maneuver each other in the run-up to his death (hard-liners are regime defenders, soft-liners are regime reformers). Some intelligence analysts believe that Mr. Kim authorised the attack in order to to shore up hard-line support for his son, Kim Jong-un. The younger Kim has no power base outside of his father’s closest associates. He has no administrative or military command experience as far as is known. This leaves him vulnerable to the machinations of veteran Communist (i.e., formally named the Workers) Party and military authorities whom may have leadership ambitions of their own. Some of these heavyweights may accept a power-sharing arrangement where the Kim dynastic line is continued more or less along the lines presently operative. Others may prefer that the younger Mr. Kim serve as a figurehead while real power is distributed among a broader array of bureaucratic cadres, thereby decentralising policy-making authority (and power) in a slow process of regime reform. Still others may prefer to dispense with the Kims entirely and assume power directly, in coalition or as part of a small cadre, either as part of a reformist or retrenchment project. All of these factions are hard-line in the views of the world, which means that whatever happens democracy and major liberalisation of the regime will not be on the menu.

On the other hand, there are soft-line factions with the DPRK regime. These are drawn from elements in the Communist party and civilian bureaucracy who have had to wrestle with the deterioration of North Korea’s infrastructure, living standards and health during the last twenty years. These people are well aware that North Korea is an economic basket case that feeds and arms its military at the expense of its people, who have been subject to famine, starvation, an array of diseases, homelessness and unemployment as they eke out what for all purposes is a Dickensian existence. It is these people who know that there are two North Koreas, one for the elites and one for the masses (as a Stalinist version of the “dual society” thesis that has been used to explain comparative underdevelopment), and it is these people who are most acutely aware of how far behind North Korea has fallen behind its ethnic kin to the South under the vainglorious and rigid Kim dictatorship. It is these people who understand that Kim Jung-il’s death provides an opportunity to open up the regime, if not immediately on the political front, then certainly on the economic front.  After all, even after the Russian, Vietnamese and Chinese abandoned communism as the major organising tenet of society, the DPRK dinosaurs cling to it as an insurance policy against threats to their rule. Hence the soft-liners are working to persuade leadership contenders that their support depends on a major opening of the regime, even if still under one party authoritarian aegis. In fact, for the soft-liners, their continued support for one party rule is contingent on economic liberalisation.

That is why the torpedo attack was carried out. It had to do with internal dynamics in the Kim regime rather than the war with South Korea itself, which merely served as an excuse (by hard-liners) to  launch the attack. A tried and true authoritarian method of shoring up elite unity and public support is to stage a militaristic diversion that rallies the public along nationalistic grounds (some might argue that this happens in democratic regimes as well–witness, say, the US and UK attack on Iraq in 2003). The torpedo attack was a sucker ploy designed to incite a South Korean response that would help consolidate the position of one of the North Korean leadership factions. But therein lies the rub, because history also shows that diversionary attacks staged by dictatorships often end in defeat and regime collapse, either immediately or in time. The Greek colonel’s regime collapsed after its defeat in the 1973 Cyprus War, a war that it started at a time when it was facing rising domestic discontent and increased disunity within the armed ranks. The Argentine junta collapsed in 1982 after its defeat in the Malvinas/Falklands campaign, a war that it also started in order to divert public attention from pressing economic problems at a time when, again, political in-fighting amongst military and civilian elites was increasing. The fall of Saddam Hussein had its origins in his invasion of Kuwait in 1990, and even if eventual rather than immediate, the end of the Iraqi Ba’ath regime was predictable from that point on.

To this can be added the problem of succession in authoritarian regimes. It is considered the Achilles Heel of authoritarianism, especially in heavily personalised, dynastic or military-dominated regimes (North Korea is all three). Because power is so tightly centralised in such regimes, even where institutionalised under one party aegis, the benefits of leadership are virtually unfettered and unlimited. There are little or no checks and balances or separation of powers in such regimes, so the material and political rewards of leadership are astronomical when compared with even bureaucratic authoritarian regimes such as Singapore or (now) the PRC. Hence the stakes of the succession game in places like North Korea are extremely high for all contenders, and the competition for leadership succession gets, to put it mildly, quite rough.

All of which is to say that the response to the North Korean attack should be subtle rather than overt. Devoid of a militaristic opportunity to engage in jingoistic stirring of popular fervor, the declining Kim regime will be forced to turn back inwards as the leadership succession issue gets more factionalised and hostile. That will likely lead to more attempts to use the military diversion option, perhaps as a desperate last resort by a losing faction in the internecine battles over leadership in the post Kim Jung-il era. But it is only a matter of time before the DPRK regime enters into terminal crisis, which is why it is best to not answer this latest provocation with force. That time may well come, but first the nature and course of the North Korean leadership succession must become apparent.

In the meantime, then, perhaps it is best for the South Koreans to move in shadows rather than in light when countering North Korean aggression.

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Where Entitlements become Rights, and Rights Outweigh Responsibilities.

My partner and I are reaching the end of our sojourn in Greece and will be back in SE Asia by the end of the week. Her data collection and interview schedule have provided the follow-up material needed to finish the Greek chapter of her book (which includes Ireland and Portugal as the other case studies, a comparative project she started five years ago and long before anyone else noted some of the bases for comparison that now occupy so much attention). For my part, I have managed to glean some preliminary observations about civil-military relations in this fragile democracy, and in doing so have developed an idea about undertaking a comparison of post-authoritarian Greece and Argentina (although the specific focus of the project is still unclear and it will have to wait in any event until I manage to finish the current, long delayed book project as well as some articles in preparation or revision).

At this point I would like to reflect on an issue that I have previously written about in this forum (Sept 2009): the notions of Entitlements and Rights, in this case as they apply to contemporary Greek democracy.

If one thing comes across to this foreign observer, the Greeks have a tremendously developed sense of entitlements and rights. In fact they see them as one and the same. But they also have little sense of social responsibility. The prevailing attitude appears to be they everyone is entitled to express their opinions however they see fit regardless of whether it infringes on other’s security or dissent.  Everyone is also entitled to extract as much as they can from the state without having to help pay the costs of public goods (say, by paying taxes in full). The expressed view is not only that people are entitled to these attitudes (seen as a combination of opinion and behaviour), but that they have the Right to them.

Of course, this is an over-generalisation. Many Greeks do not impose their views on others and retreat into parasitic survivalism outside of their involvement in the public sphere. Yet at least when it comes to the intersection of political and civil societies, the tone is often “me/us first, the rest of you can get stuffed.”

What is interesting about this phenomena is 3 things: 1) that this notion of collective and individual entitlement is construed as a Right of all Greeks. Although nowhere is it written in the Greek constitution that people have a right to storm parliament, attack the police, property and standers-bye, or thrown molotovs into banks during demonstrations, it is generally accepted that such is inherent in the Greek way of expressing dissent or dissatisfaction with the status quo. These types of direct action are not seen as insurrection or low-level guerrilla warfare, but as something disgruntled Greeks simply do.

This attitude–that Greeks not only are entitled to get agro when they protest but have a right to, and that it is their right to not be held to criminal account for their violent public actions–is a product of the days in 1973-74 when the university student movement was instrumental, via violent clashes with the security forces, in bringing down the so-called colonel’s dictatorship that had usurped Greek democracy in 1967. Many of the leaders of that movement are now senior figures in politics, unions, the civil service and higher education. For them it was the resort to direct action, at considerable physical risk to themselves, that was THE decisive factor that restored Greek democracy. As a result, the role of direct action, including violence, has been mythologised in modern Greek political folklore, and even if stylised and ritualised in many instances, it remains central to the formation and reproduction of Greek political identities. In other words, to be staunch in the streets is to be Greek, and nothing can infringe on this inalienable right of all Greeks (immigrants are another matter). In a country that reifies its warring history regardless of win or loss, this is a powerful glue.

That brings up the second interesting aspect of this entitlements-as-rights phenomena: the government, including security forces, agreement with that logic. It is remarkable how the government accepted, for example, that the attempted storming of the Greek parliament on May 5 was a “right” of the protesters. Although it denounced the murders of three bank workers caught up in the demonstration violence, it did not specifically condemn the burning of the bank in which they were trapped.  Instead,  the government ordered that the parliament building be defended so that the debt rescue package could be voted on, but it clearly instructed the riot police to deal  lightly with the protesters and to not enforce basic criminal statutes outside of the immediate confrontation zone around parliament itself (and as I mentioned in a previous post about the general strike, may have negotiated with the communist-led unions to ensure that this occurred).

Nor was there a massive police cordon erected around the city centre, or police roadblocks and checkpoints erected at major road and rail access nodes to the downtown area even though it was a foregone conclusion that armed fringe groups were headed to the scene (and I must say that some of the Greek militant factions have truly marvelous names, such as the “Conspiracy of the Cells of Fire” held responsible for two bombings this weekend in Athens and Thessaloniki). In other words, with full knowledge of what would happen, the government confirmed the perception of entitlements-as-rights by ordering that security be limited and light.  Hence, for the moment, the military has played no role in internal security, which is left to two layers of riot police (one to prevent, the other to respond to violence), regular cops and plain clothes detectives and intelligence agents. However, if the pace of agitation continues, that attitude of military non-involvement in domestic security could well change (and it does not have to be overt, just decisive).

In effect, all political actors accept this particular interpretation of the Greek “me/us first, the rest be stuffed” broad entitlements-as-rights argument. Perhaps that is because there is also a fundamental Greek belief in the powers of collective and individual self-control. But nothing I have seen in the Greek streets suggests that self-limitation is a widely accepted national trait. To the contrary, the general attitude on the streets, both in the daily routine as well as during demonstrations, is that one gets away with what they can absent countervailing or superior power.  For those who have had the experience with them, Athenian street market vendors and taxi drivers are cases in point (and yet the market for both persists).

To put that in a comparative perspective, imagine any group in NZ claiming the right to throw molotovs, wreak storefronts  and storm parliament, and have that “right” not only accepted by any government of the day but also have that government order the police to refrain from using undue force on said protesters in the event they turn violent (to include limiting the number of arrests). Would that ever be feasible? For those so inclined, spurious comparisons with “wreakers and haters,” spitters, bum flashers, flag shooters and burners or street theater anarchists simply do not cut it.

That brings up the third, and most troubling aspect of the broad Greek interpretation of entitlements-as-rights (which if readers may remember my post on the subject last September are clearly not the same thing, nor should they be). Nowhere in this logic is there any notion of social responsibility, be it collective or individual. The entire argument is framed simply in terms of expected treatment and permissible behaviour, not in terms of social costs or collective mitigation of harm in pursuit of the common good. The absolutism of the claim of entitlements-as-rights and the absolute lack of relativity or regard for consequence are quite astounding. It is remarkable to watch and listen to people proclaim zero responsibility for societal ills, collective dysfunction or personal injury while demanding that their expanded notions of public and private rights be held sacrosanct. For this observer, the gap between what is demanded and what is offered in return is canyonesque.

And that is where my personal disconnect lays. As someone who recognises the legitimacy of violent direct action in the face of oppressive regimes, I fully understand the public need to physically confront the powers that be. But I also understand that there are costs involved in that form of expression. When one contravenes established  criminal law–often on purpose because it is a symbol of tyranny or class rule–one accepts that s/he has placed themselves outside of the law-as-given. One is thus a self-recognised “outlaw,” defined in old American Western parlance as “outside of the law.”  Being outside of the law of course means that one is liable to extra-judicial retribution, or at least criminal charge. Guerrillas  and counter-hegemonic activists of of all stripes understand this as they enter the fray and they fully understand the downside consequences of their decision to act (the Waihopai 3 notwithstanding). Having said this, it strikes me that the Greek state is more obese and arthritic than malignant and oppressive, so the resort to violent direct action on a near daily basis seems symptomatic of  a malaise not solely attributable to the Greek state.

And yet in contemporary Greece most everyone has a state-centred grievance and no one has a a claim on blame (or at least accepts even partial responsibility for social costs involved in the claim to entitlements-as-rights). For Greeks, collective costs are acceptable so long as immediate personal injury is avoided (this applies to bank managers as it does to unemployed youth). Rights of voice and expression are believed to be unfettered and encumbered only by individual preference, the consequences of which are to be borne by others.  Outside of exceptional cases involving ongoing public interest, public or private contravention of the law-as-given is generally held to be non-liable. A petrol bomb here, a bribe there–everyone is entitled to express their self-proclaimed rights in their own way and others should beware and steer clear. There is collective tolerance of that view. Governments come and go indulging such attitudes as the miminal cost of rule. Greeks that understand democracy as a substantive and procedural compromise can only ponder this, shrug their shoulders, and silently weep.

All of that may change now that the crisis is upon the Hellenic Republic. What may have been permissible in better economic times may no longer be so as the burden of sacrifice begins to wear on the fabric of Greek society. As austerity bites into the great mass of Greek workers the resort to survivalist alienation in the private sphere may give way to a defensive overlap between collective and private notions of entitlements-as-rights, drawn along lines reminiscent of 1974. Should that occur (and there have already been calls from ultra-nationalist groups for the military to act), the logic of entitlements-as-rights spawned by the events in 1974 could well be replaced by a military counter-version in which it is entitled, and has the right, to intervene in government in order to “save” the nation from itself, even if on a temporary basis.

Improbable as that may seem (and it is), such could well be the future price Greeks might pay for confusing a broad conception of entitlements with civil rights devoid of civic responsibility. Let’s hope not.

Epilogue: This concludes my posts about Greece. I may have more to comment on this fascinating country down the road but for the time being I must contemplate a return to the authoritarian (yet efficient and clean!) tropics. Which brings up the question: is it better to live peacefully and comfortably without real voice under authoritarian aegis, or is it better to suffer disorder and inefficiency in a democracy in which voice matters more than anything else? That is the perennial question of transitional political societies.

PS: My partner says that the syndrome is much more individual than collective, and that participation in collective action is a convenient cover for individualist self-projection using the ideological justification of rights to unfettered voice (rather than a genuine concern with collective gains). I disagree to some extent because I think that repeated involvement in direct action modifies the very notion of self (for better or worse), but that subject is for another discussion. In the meantime I defer to her superior knowledge of all things Greek.

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Even Dogs Can Play the Riot Game.

Since there has been a fair bit of bad jokes in the NZ blogosphere as of late, including here at KP, I thought I would continue the Greek-themed posts of the past few weeks with one that humourosly shows the extent to which demos and riots are part of the Athenian way of life. Check it out here.

Hat tip: Tom Charteris.

UPDATE: Some of the dates in the photos apparently are wrong. The dog in question was named Kanellos and lived on the University of Athens campus (which is downtown) as a street dog. His collar was provided by a volunteer organisation that sterilises and vaccinates street dogs. He was a legend in his own time and died in July 2008 (or maybe later–more on this in the comments on the linked post). Either way, his life and times, and the role of his purported heirs (Lukas in particular), illustrates the point about the role of street activism in Athenian civil society. Were  it that NZ activists had these dog’s bollocks.

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A chronicle of deaths foretold.

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

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

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

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

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

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

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

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

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

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

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

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

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Thoughts about Key’s Afghan PR Exercise.

I have seen and read the reports of John Key’s much anticipated “secret” trip to Afghanistan.  I must say that it is one of the more amateurish, cringe worthy attempts at symbolic politics I have seen in a long time–not quite as bad as George W. Bush’s “Mission Accomplished” carrier charade, but of the same ilk. Let me explain why.

First, the good part. I think it was entirely sensible for the National spin-meisters and military brass to tie the Afghan detour to the Gallipoli celebration trip. The unfortunate RNZAF chopper accident on ANZAC day forced a change of plans so that the PM could attend  the funerals of the ill-fated crew, but that only added to his  message of military support and remembrance. As for the greedy economic opportunists who have criticised him for abandoning the arse kissing trade mission to the Arab Gulf Coast, they need to realise that given the circumstances in which the tragedy occurred, Mr. Key had no political option but to return for the funerals. How would it have looked if he choose to continue to brown nose the Arabs while some of the nation’s service people were laid to rest?  The likes of one Mr. Langely may put personal self-interest before recognition of service, but most Kiwis understand that not only was it politically necessary for Mr. Key to return, it was the right thing to do.

But that is about as good as it gets. Contrary to the fawning editorial opinion of the NZ Herald, Key’s tiki tour of Afghanistan showed how out of his league he is on international security affairs.

He started out by mentioning that he was flown by helicopter from his arrival point (presumably Bagram Air Force Base, the site of a notorious US “black” detention centre) to the SAS location. In doing so he managed to convey the message that the most heavily defended areas of Kabul are still too dangerous for Western VIPs to drive through, and that the SAS is not located in Kabul as he claims but is actually based elsewhere. He then pointed out that he used heavily armed motorcades to travel in Bayiman and elsewhere because he and his entourage were “juicy fish” for insurgent targeters.

Well, not quite. In a country that is awash in visits by heavy-hitters from a number of countries, Mr. Key is more like  an anchovy.  Moreover, heavily weighted  Western motorcades involving a half dozen armoured SUVs and armed escort vehicles are not immune to roadside bombs (and I bet he traveled in the third or fourth vehicle). In fact, given that they have to travel on main arteries and disrupt local traffic and pedestrian flows as they do so, convoys such as Mr. Key’s actually make for better targets for opportunistic guerrillas deeply embedded in a resentful local population (especially where well-prepared guerillas can deploy efffective IEDs on five minutes notice). If leaving a light footprint is what hearts and minds are partially about, then his mode of land transport was a tactical failure.

Mr. Key prattled on about how he wanted to experience the conditions in which the NZDF operate in that theater. But he choose to spend his evenings at the British embassy. That is a double insult: first to the UN and ISAF patrons of the NZDF mission, which have their own housing compounds or use heavily guarded hotels for visiting VIPs; and secondly to the NZDF itself. Mr. Key could have stayed in officer quarters in any number of bases including at the PRT in Bayiman or the SAS operations centre (which is likely to be on the Afghan military base where its anti-terrorism Crisis Response Unit is headquartered). But instead he choose to take the poncy route and accept accommodation from the colonial master. How quaint of him, and how much it tells us about his sincerity in wanting to understand the conditions that NZ troops face.

Mr. Key managed to offend the Bayiman locals by trying to shake hands with a girl, a cultural taboo in that region. So much for MFAT and NZDF giving him a head’s up about local customs, to say nothing of his lack on intuition about the context in which he was operating. For him, ignorance on that occasion turned out not to be bliss. For the NZDF PRT team, this could have been ther moment where 6+ years of good civil-military relations became unstuck. The question begs: would Helen Clark have been so, uh, uninformed? >>Note to Red Alert and The Standard–while I appreciate your views you must not use this post to score political points because to my mind you are little better when it comes to partisan  issues such as this>>

In defending their role, Mr. Key  said that the SAS had not fired their weapons. This is laughable to the point of tears. The very nature of their “training” mission, as well as the fact that they have participated in at least two well publicised firefights (even if we accept the argument that they did so in “support” roles, which is ludicrous), requires that the SAS  employ their weapons, even if merely as covering or suppressing fire for their Afghan comrades.

And yet, the supplicant NZ press uncritically lapped up his patent lie while he hid under the doctrine of  plausible deniability (that is, because Mr. Key may have believed the lie to be true because his advisers or the NZDF command told him to take their word at face value and he had no reason to doubt them because he simply does not know better). Here, Mr. Key’s ignorance truly is a measure of political insulation, if not bliss.

Mr. Key told this same press that he was “considering” extending the deployments of the Bayiman PRT and SAS past their respective termination dates in September 2010 and March 2011 respectively. This was a forgone conclusion given that the NZDF wanted to do so and given the government’s obsession with tying a bilateral US-NZ free trade agreement to its military commitment in Afghanistan as well as the recent military-to-military reapprochment between the two countries. Heck, the foreign press was told before the trip that the extension had already been authorised but Mr. Key played cagey with the NZ press. Could that be because he wants to appear to be considerate of opposition voices in parliament when in fact he is not?

Mr. Key did his usual name-dropping act. He met with Karzai and General McCrystal. He met with local leaders. Although he waxed lyrical about what they had to say, he made no mention of what he had to say to them. Did he tell Karzai that his corruption and the drug-running antics of his cronies would not be tolerated? Did he press Karzai on not back-sliding on human rights, especially for wimin and ethnic minorities? Did he query McCrystal on continued civilian casualties at the hands of ISAF forces, and did he make clear to the General what the NZDF understanding of the rules of engagement are?  Nothing of the sort has been mentioned, so for all the NZ public knows he could have been exchanging cricket scores and family photographs with the Big Boys.

And then there was the piece d’resistance: John Key fitted out in a journalist flak jacket and helmet, his blood type outlined like a bulls-eye on his chest, grinning like a kid in a GI Joe costume. Then there were the photos of him acting friendly with the pilots on the RNZAF C-130 and acting pensive on the US Blackhawk ‘copter that did the bulk of his tour transfers. Dang. I have no doubt that he needed the body armour when he was not sipping tea with the Poms, but did his minders really think that a photo op in that outfit would come across as warrior-like and decisive? If so, they are clueless because he just looked goofy, somewhat akin to the infamous photo of Democratic candidate Michael Dukakis sitting in a tank turret wearing a helmet in the 1988 US presidential campaign. In both cases the image spells out L-O-O-O-O-O-S-E-R.  As for the aircraft photos: staged and contrived from the get-go. He looked like he was on one of those Air NZ tourist charters to the Antartic summer solstice. Another photo op FAIL.

Mind you, the NZDF brass as well as the troops on the ground would have appreciated the gesture, albeit for different reasons. So there was symbolic worth in the venture. It was in its execution where the enterprise failed.

Because they are clueless National PR flacks will congratulate themselves on a job well done in getting their message about the PM out to the masses, and the supplicant invited press will play the role of willful lapdogs by writing positive stories based on National PR releases (in part, because they share the government’s contempt for the intelligence of the general population, and in part because they would like to be invited along on other future junkets of this sort). But the cruel truth is that the exercise showed yet again how far out his depth the PM is when confronting the intricacies of even the most rudimentary aspects of foreign affairs. For those with a better sense of judgement, the exercise was embarrassing, not encouraging. Or as Pauly Fuemana would have said, “how bizzare.”

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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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Niwa Knobs.

 

***THIS POST HAS BEEN UPDATED ON APRIL 17 TO ACCOUNT FOR NEW INFORMATION RECEIVED***

Niwa has announced that a contract to upgrade the research vessel RV Tangaroa has been let to a Singaporean company rather than a NZ-based consortium. The EPMU and Labour Party have criticised the move, citing the fact that local jobs were at stake and a chance to up-skill NZ workers was lost. And of course, the flow-on effects of employing NZ workers is obvious, because they will spend their  wages a bit on beer but more on nappies, mortgages, rent and DIY projects. All that is true and reason enough to oppose the Niwa deal, but there is much more to the story. That is because the bottom line boils down to what I shall call a dirty money savings. Here is how it works.

The Niwa chief knob, John Morgan, refused to state what the bids were, but other sources have noted that at $9 million the NZ contractor bid was more than double the $4 million Singaporean bid. Sounds like he got his maths right. Mr. Morgan then went on to say that the Singaporean contractor had a lot of experience and 3000 staff  dedicated to the task as well as many resources to do the upgrade, which he claimed was a complex operation that involved cutting holes in the hull of the ship in order to install a dynamic positioning system (DPS) that holds the ship steady and precise over an undersea target in variable conditions (how he thinks that 3000 people will work on that one job is another question,  as is the complexity of cutting holes in a boat, but I am just quoting from the NZPA article on the decision).

He defended the decision as a cost-savings bonus for the NZ taxpayer, and the Minister for Research, Science and Technology the vainglorious “Dr” Wayne Mapp (Ph.D.s in Law are not usually addressed as Dr.) pontificated that although he was not involved in the decision he supported it because the NZ consortium was not dependent on that contract (presumably that resource-rich Singaporean outfit was) and, quote, “after all we have an FTA with Singapore.” File that one under “another Mapp moronity.”

Here is why the deal is dirty. Unskilled and semi-skilled Singaporean shipyard workers (e.g. stevedores, drivers, loaders, builders and roustabouts)  are paid between SG$10-15 dollars per day. Non-engineer skilled workers (divers, torchmen, pipefitters) may earn double or triple that. They are mostly foreign workers on temporary visas (mainly from Bangladesh, mainland China and India) who cannot bring their families with them and who are housed in containers and squalid dormitories with occupancies of 20-50 men per room and one toilet amongst them (women are not allowed on the docks). They are not allowed to independently organise or collectively bargain. They work 12 hour days and suffer extremely high rates of industrial accidents–over 50 workers died in 2009 from injuries received on the job, and dozens if not hundreds more were crippled by accidents. In the vast majority of cases, seriously injured foreign workers who are unable to return to work are left dependent for months on private charity until their claims for compensation are resolved or are deported once they leave hospital (and often repatriated in any event).

Mr. Morgan is reported as saying that the Singaporean bid, at $30/hour (it is not clear if he is speaking of US, NZ or Singaporean dollars), was half the NZ $60/hour labour costs. But whatever the currency, $30/hour would only apply to supervisory and managerial staff who would not be doing the physical labour involved in installing the DPS system (which would be done by the foreign workers mentioned above). That means that his claims of labour costs savings on which the decision partially rested is either a willful misprepresentation of  the true Singaporean figures or, worse yet, a sign that Niwa did not undertake due dilligence in ascertaining the veracity of the $30/hour figure. In other words, if the latter is true then Niwa got fleeced by the Singaporean contractor, who then pocketed the difference between its real labour costs and the $30/hour figure. If the former is true, the Mr. Morgan needs to be held to account for his miserepresentation.

There is a bigger picture to consider. Singapore is an authoritarian state in which political  party competition and elections are rigged, freedom of speech is restricted and foreign workers are  not covered by the same labour laws as Singaporean citizens. Instruments for foreign worker redress, compensation and mediation are virtually non-existent. The Singaporean lifestyle, so admired by John Key and other acolytes of the Singaporean regime, is based on the gross exploitation of these foreign workers who, after all, build the buildings Singaporeans live and work in, provide the food, transport and maid services they are accustomed to, construct their highways and polish their cars, and staff the hundreds of foreign MNCs the use the country as an operational hub. Foreign workers comprise a quarter of Singapore’s nearly 5 million population, so the economic debt owed to them is great.

That is why the decision is about dirty money savings. Forget the job-related issues in NZ. Niwa’s decision is based on its knowingly countenancing the human rights abuse of a vulnerable group of people in a foreign country. It violates ILO standards, it violates NZ labour law, and it violates nominal notions of decency in doing so. Mrs. Morgan and Mapp may argue that Niwa is saving the NZ taxpayer money, and that it is not responsible for the behavior of foreign contractors, but in doing business with the Singaporean firm it could well wind up with blood on its hands. Put succinctly: the money Niwa saves on the deal comes directly from the sweat and blood of these foreign workers.

None of this would matter if NZ was an authoritarian state unconcerned about human rights and fair labour standards. The problem is, NZ spends a lot of time in international fora banging on about exactly such things. However, this appears to be more a case of  “do as I say, not as I do” because NZ in recent years has seen fit to cozy up to regimes like those of  Singapore, China and a host of Middle Eastern autocracies, in which the very concepts of universal rights and fair labour standards are not only disputed, but rejected out of hand on “cultural difference” grounds. Well, that may be the case because as Lew so nicely put it a while back, “NZ foreign policy is trade,”  but NZ does not have to contribute to the perpetuation of exploitation in foreign cultural contexts, especially if its reputation depends on its rhetorical championing of human rights. That is a matter of choice, and the choice in this instance is clear.

There is such a thing a trading fairly and doing business in an ethical way in which the bottom line is not just about money, but about human decency as well.  A restrained rate of profit or reduced savings on cost are often a better guarantee of long term investment than short term profit maximisation or miserliness,  and an interest in foreign worker conditions can contribute to the betterment of international business practices. But the choice here has been to save costs rather than stand on principle and improve by example. For a country that prides itself on its international status based upon fairness principles, decisions like this one give the lie to the cheap talk in international confabs.

All of which is to say–shame on both of you, Misters Mapp and Morgan. But then again, we would not expect otherwise.

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Being pro-Israel is not to be pro-Zionist or anti-Palestinian. To be anti-occupation is not anti-Semetic.

One of the ironies of the perennial Middle Eastern conflict is how the Western democratic Left shifted from a pro-Israeli position (held until the 1970s), to an anti-Israeli position during the last three decades. Much of this is Israel’s own fault, as its continued expansion into, and occupation of Palestinian lands in violation of the 1967 and 1973 war settlements, to say nothing of the Camp David accords, has re-cast its image to that of an imperialist oppressor rather than besieged liberal democracy surrounded by a sea of hostile Arab despots and medieval theocratic zealots.

 

Yet Israel remains the sole functioning democracy in Middle East (Turkey is further afield and excluded from this analysis for argument purposes), one that if, in a process of increasing decay (think the Olmert and Sharon corruption scandals),  internal polarisation (think of the political ascendence of the rabid orthodox Right and its impact on Israeli settlement policy) and restrictions on the political  and civil rights of Arab Israelis and the Arab inhabitants of the occupied territories, remains in stark contrast to the autocracies or facade democracies that, even if pro-Western, surround it. In terms of social toleration, gender and economic equality, and freedom of expression, Israel remains ahead of all of its neighbours. In fact, Israel is a classic social democracy whose betrayal of its basic principles has also been seen in the negative fortunes of its Labour Party, something that has only been partially been compensated by a rising peace movement in opposition to Likud and its religious zealot allies (it should be noted that most of the orthodix Jewish zealots are fairly recent foreign immigrants from the US and Russia, and not second or third generation Israelis).

 

But the view that Israel, in spite of its grave flaws, remains a country worth supporting  is a view that can no longer be safely voiced in Left circles and is in fact now a minority opinion. Instead, the Palestianian struggle has become the main Left cause celebre as an expression of anti-imperialism, no matter that both Hamas and Fatah are intensely authoritarian political organisations with little socialist inclination, the former acting not only as militant counter to the “betraying” moderation (and corruption) of the latter, but also acting as a proxy (along with Hizbullah) for Iranian influence in the Eastern Mediterrean (Iran being an elected authoritarian-theocratic regime in which basic civil liberties are, to put it gently,  seriously curtailed). Moreover, Hamas in government in Gaza has been anything but democratic in its treatment of internal dissent, so even if it was voted in fairly (much to the US and Israel’s dismay), it has not made good on its promises to bring democratic governance to its beleaguered people. The larger point being that Israel may suck as a democracy, but its neighbours and opponents may suck just as bad or worse.

 

Thus, if one is on the Left side of the Western political spectrum and expresses a sympathy for Israel in spite of its flaws, even if only in comparison to its neighbours and the character of Palestinian political society,  then one risks being pilloried by ideologically kindred spirits.

 

On the other hand, if one points out the illegality of Israeli occupation of land in Gaza and the West Bank, and the illegality of the ongoing settlement of Palestianian lands, and/or notes the deterioration of Israeli democracy, then one risks being labeled an anti-Semite by Israeli sympathizers and the political Right. These see no fault in Israel and no good in Palestianians. Their fear of Islamicism overrides their concern Israel’s political decadence and its overtly bellicose approach to regional affairs. They see and hear no evil when it comes to Israel.

 

There is no point in arguing, as many do, about who came first to that part of the world–Jews, Arabs or Christians. Arguing about who came first 2000+ years ago does not advance one iota the prospects for a peaceful settlement of current disputes (there is a parallel here to the “we were here first” arguments of some Maori activists). Nor does it do any good to re-visit the circumstances surrounding Israel’s founding as a nation-state (much like there is little point in arguing the legitimacy of European colonisation of Aotearoa). The fact is that Israel (like Pakeha) is (are) not going anywhere.

 

Israel is here to stay regardless of whether its neighbours or non-state adversaries may wish it not to or plan for its demise. Thus, the real point of departure for any prospect for peace is admission of the fact. Sadat recognised this and paid for it with his life. In turn Rabin recognised that Israel needed to deal as equals with its Palestianian counterparts and paid for that view with his life. Perhaps it is fair to say, then, that there are those on both sides (and inside and outside the Middle East) who have a vested interest in perpetuating the conflict rather than solving it, and they do so by dredging up historical grievances and past offenses as one means of doing so.

 

Needless to say there is a fair bit of anti-Semeticism in the opposition to Israel, particularly that voiced in Muslim and some Christian fundamentalist circles. And, needless to say, the heretofore seemingly blind US support for Israel has very much made it the tail that wags the US dog when it comes to Middle Eastern policy and has contributed to Israeli intransigence and defiance when it addresses international conventions (something that may be shifting as a result of the Netanyahu government’s latest affronts to US attempts to re-start the so-called “peace process”). But opposition to Israeli occupation is not reducible to anti-Semeticism or anti-US beliefs. Instead, it can rest on a principled opposition to illegal behaviour on the part of a democratic state that more than most should understand the long-term consequences of oppression and inequality. Israel may continue to feel besieged (although truth be told many Arab states de facto accept its existance, so much of the siege mentality is driven by domestic ideological competition) but much of the opposition to it now has to do not with its origins or ethno-religious character but with its current behaviour.

 

The current rift in US-Israeli relations is a moment to drive that point home, devoid of the emotional and ideological baggage that has impeded rational discussion about the way forwards towards a durable peace. It remains to be seen whether those with a vested interest in perpetuating the conflict, be they from the Left or Right, will accept that to be the case.

 

Forewarning: Comments that attempt to rehash historical disputes (i.e. the “who came first” or “Israel’s founding was illegal” arguments) will be deleted simply because they add nothing to what has been said ad nauseum already. Likewise for personal attacks on what some might take to be my position one way or the other. In the latter case the point will have been missed that what I am trying to do here is steer a middle course through the ideological minefield that surrounds discussion of the Israel-Palestinian conflict.Â