I came back from six weeks abroad to see the beginning of the Internet Party’s “party party” launches. It leaves me with some questions.
It seems that what the Internet Party has done is this. Using Kim Dotcom’s wallet as a springboard, it has selected a candidate group largely made up of attractive metrosexuals (only a few of whom have political experience), recruited as window dressing a seasoned (and also attractive) leftist female as party leader (even though she has no experience in the IT field), and run a slick PR campaign featuring cats that is long on rhetoric and promises and short on viable policies. The stated aim is to get out the apathetic youth vote and thereby reach the three percent electoral threshold.
The strategic alliance with the Mana Party makes sense, especially for Mana. They get additional resources to more effectively campaign for at least two electorate seats, especially given that it looks like the Maori Party is moribund and the Maori electoral rolls will thereby be more contestable even if Labour tries to reclaim its historical support in it. The Internet Party gets to coattail on Mana’s activism and the presence of relatively seasoned cadres on the campaign trail. Between the two, they might well reach the five percent threshold, although current polling suggests something well less than that. The lack of political experience in the Internet Party could be problematic in any event.
But I am still left wondering what the IP stands for and how it proposes to effect change if its candidates are elected. We know that the IP came about mostly due to Dotcom’s hatred of John Key. But Dotcom is ostensibly not part of the IP, which makes his attention-grabbing presence at its public events all the more puzzling. Leaving aside Dotcom’s background and baggage for the moment, imagine if major financial donors stole the stage at Labour, National or Green Party rallies. What would the reaction be? Plus, hating on John Key is not a policy platform, however much the sentiment may be shared by a good portion of the general public (and that is debatable).
Giving free internet access to all seems nice, but how and who is going to pay for that? Wanting to repeal the 2013 GCSB Act and withdraw from the 5 Eyes intelligence network sounds interesting, but how would that happen and has a cost/benefits analysis been run on doing so? Likewise, opposition to the TPP seems sensible, but what is its position on trade in general? The policies on the environment and education seem laudable (and look to be very close to those of the Greens), and it is good to make a stand on privacy issues and NZ independence, but is that enough to present to voters?
More broadly, where does IP stand on early childhood education, pensions, occupational health and safety, immigration, transportation infrastructure, diplomatic alignment, defines spending or a myriad of other policy issues? Is it anything more than a protest party? Nothing I have seen in its policy platform indicates a comprehensive, well thought roadmap to a better future. In fact, some of the policy statements are surprisingly shallow and in some cases backed with citations from blogs and newspapers rather than legitimate research outlets.
Is having attractive candidates, catchy slogans and a narrow policy focus enough for IP to be a legitimate political contender?
I have read what its champions claim it to be, and have read what its detractors say it is. I am personally familiar with two IP candidates and have found them to be earnest people of integrity and conviction who want more than a narrow vendetta-driven agenda opportunistically married to an indigenous socialist movement. I would, in fact, love to see it succeed because I think that the political Left in NZ needs more varied forms of representation in parliament than currently available.
So my question to readers is simple: is the IP a viable and durable option in the NZ political landscape, or is it doomed to fail?
One thing is certain. If dark rumours are correct, the government has some unpleasant surprises for the IP in the weeks leading to the election. If that happens, it may take more than Glenn Greenwald and his revelations about John Key and the GCSB to redeem the IP in the eyes of the voting public. I would hope that both Dotcom and his IP candidates are acutely aware of what could be in store for them should the rumours prove true, and plan accordingly.
The chaotic state of contemporary international affairs demonstrates the serious limitations of constructivism and idealism as theoretical frameworks for the analysis of global macro-dynamics. The former claims that the construction of international institutions helps universalise common values and mores, thereby leading to improved interstate relations under supranational (international organisation) guidance and enforcement. The latter posits that the perfectability of humankind makes for a common search for cooperation in the conduct of foreign affairs. This leads to the pursuit of constructivism in international relations as common effort is made to overcome self-interest as the bottom line of nation-states. Both schools of thought believe that economic and non-state actors will eventually adopt similar approaches to their behaviour with foreign entities, as the universalisation of norms serves as a hedge against the uncertainties that ultimately lie at the heart of foreign relations based upon self-interested maximisation of opportunities by international actors acting rationally in environments of scarcity and limited information. This line of thought follows a rich utopian tradition that extends back to Immanuel Kant’s “Perpetual Peace” through Woodrow Wilson to Alexander Wendt.
There have been undoubtable advances in international cooperation and the embrace of universal norms and supranational institutions over the last century. But recent events suggest that two “old school” theoretical approaches remain the best guides to international dynamics and the behaviour of international actors, both state and non-state in nature: realism and systems theory.
The reasons are simple. Realism is funded on the belief that absent universal norms accepted and enforced universally, self-interest is the ultimate determinant of actor’s behaviour in the international arena. This tendency is accentuated in environments of scarcity or of competition over strategic resources. Both situations–the lack of universally shared norms and competition over strategic resources–are hallmark characteristics of the present era.
International systems theory is both descriptive and prescriptive. The former describes the nature of interstate power relations at any given point in time: unipolar, bipolar, multipolar or anarchic. The analysis of said relations occurs globally, regionally and sub-regionally, as the international system is seen as being comprised of sub-systems acting at the micro (sub-regional) meso (regional) and macro (international) levels. The latter is a product of both the first two as well as dynamics of its own.
Realism is focused on the exercise of power and its distribution in the international arena. It has intellectual origins in the thought of Metternich and Machiavelli, upgraded in modern times by Hans Morgenthau and Kenneth Waltz (who advanced a school of thought known as structural realism or neorealism that emphasised economic power as opposed to military-diplomatic power). Today the concepts of “hard”,” “soft,” and “smart” power all follow in this tradition.
International systems theory was first advanced by Morton Kaplan, who adapted David Easton’s work on domestic political systems to the international stage. It sees systems as involving input, output and feedback loops that push the evolution of a particular system in a given direction. As with realists, the focus of international systems theory is on distributions or balances of power.
For international systems theorists the state of world affairs is never static. Instead, it is fluid and constantly in a process of change. There may be periods, often long in nature, of relative stability of a given system, but these are not permanent due to the inherent characteristics of the actors involved. For example, the Cold War was a period of what came to be known as tight bipolar stability, with alliance systems constructed around two opposing superpowers bound by the logic of nuclear deterrence. 45 years in duration, that system is considered to be relatively long-lived by systemic standards.
The post Cold War system was seen as unipolar in nature, as the US was considered to be the sole superpower after the collapse of the USSR. But in the eyes of systems theorists unipolar systems are inherently unstable, as pretenders to the throne will work incessantly, even if indirectly, to advance their positions vis a vis the so-called “hegemon.” In fact, unipolar systems are considered to be only marginally more stable than large-N multipolar systems in which power is widely distributed and strategic resources are regularly contested.
In contrast, small-N multipolar systems revolving around 3-5 states and their respective alliances or spheres of influence are considered to be the most stable types of international system, since the different poles can balance and counterbalance their relations with each other based upon mutual necessity. Balances of power are inherent in all international systems other than unipolar ones, and shifting allegiances on particular military, diplomatic and economic issues allow for equilibrium to be maintained amongst the competing powers.
Under the logic of international systems theory unipolar systems cannot hold and will eventually lead to systemic realignment that results in the emergence of a bi- or multipolar world. But the transition has a systems regulator, and its name is conflict.
International systems re-equilibrate through conflict. Here the quest for balancing becomes something akin to jostling for position in the making of a future world. Conflict runs a gamut from diplomatic tensions to war, and includes economic disputes and sanctions, unilateral and multinational foreign interventions, increased espionage between and within alliances and among individual nation states, and breakdown of international norms and consensus. The transitional period can see temporary alignments and bouts of various types of polarity, but is essentially a fluid moment that can last decades until systems equilibrium is restored. During that time different types of conflicts ebb and flow, to include major conflagrations.
Much like the invisible hand of capitalist economics, systemic realignment occurs in the aggregate rather than as the purposeful outcome of individual preferences or collective decision-making. State and non-state actors may attempt to steer the course of systems transition, but eventual stability depends on the establishment of a status quo that supersedes their particular desires.
What all of this suggests is that the current state of international affairs is one of systemic realignment. The transitional moment began with the end of the Cold War and accelerated after 9/11. The ensuing decade of armed conflicts, new and resurrected tensions in Central and SE Asia and the Middle East and rise of new power contenders such as the BRICs has produced a context of competition and conflict in which national self-interest prevails and international norms and institutions are ignored in favour of piecemeal solutions. The situation is set to last for some time, so we should be under no illusion that a new stable international system will be established soon.
Instead, a prudent course of action for a small country would be to understand that during a period of systemic realignment, strategic hedging in the form of holding all diplomatic options open, diversifying the range of economic partners and placing strict limits on the conditions in which military force is deployed is the best means of navigating the transitional moment.
Unfortunately, that does not seem to be what New Zealand is doing, which begs the questions as to whether its foreign policy elite truly understand the nature of contemporary international relations and what conceptual frameworks they employ to chart a course within it.
In the previous two posts I’ve covered the strategic rationales behind the Internet MANA alliance, and how, even if they spend their money very inefficiently, they are still very likely to gain a stronger presence in Parliament. But what does success actually look like for Internet MANA?
This is a complex question to answer because Internet MANA, for all its potential, is a mess of vanity projects existing in a state of ideological and pragmatic tension. But tensions all resolve sooner or later.
Kim Dotcom: Disruption (a change of government, or 10%)
To get his extradition case thrown out, Kim Dotcom needs to change the government, and prevail upon an incoming Minister of Justice that he and his party are great assets to that government.
The likelihood of this is slim, because he has already antagonised Labour, and because the leader of his own party has insisted she will not be led on the matter. Other members of the radical left groups aligned with the party are probably supportive of his ideological aim here, if only due to generalised anti-authoritarianism and anti-Americanism. And the other branch of Kim Dotcom’s game is fame, or notoriety, and if he can put his disruption engine in parliament, he will gain that, and it may provide him strategic cover for other manoeuvres regardless of who is in government.
The other way it could happen is if Internet MANA shocks everyone and polls very high — say, 10% — which would ruin almost everyone’s coalition plans. This is also extremely unlikely, but clearly it is Kim Dotcom’s hope, and it would be the purest sort of success for everyone involved.
Laila Harré: A launch (5%+) or a lifeboat (3%)
There’s a quirk here: Te Mana gets list places 1,3 and 4; Internet Party 2, 5 and 6, after which they alternate. So if they win five seats or fewer, Te Mana MPs will outnumber the Internet Party’s. If they win six or more seats, the numbers are more or less even. This provides a strong incentive for the Internet Party to perform, and also suggests shrewd negotiation by Te Mana.
In the event that the Internet Party bring Harré only into parliament (four seats or fewer), or if Kim Dotcom withdraws his cash and the party structure is no longer found to be self-sustaining, it seems very likely that Harré would join Te Mana formally. While her history in parties of this sort is its own guide, I suspect they would welcome her and it would be a fruitful arrangement: a win, of sorts, both for her and Te Mana.
The Internet Party: A future (7%)
Te Mana and Hone Harawira: The only way is up
The Left: It’s complicated
There remains the slight possibility that they will bring enough MPs into parliament to make a chaotic and unholy alliance of the left a just slightly less-bad alternative to the Golden Age of John Key. As an aside: the better the Greens do, the better for Internet MANA post-election; and if nothing else they should hopefully form a strong ideological and generational counterpoint to New Zealand First, which I fear starts to fancy itself as the UKIP of the South Seas.
Aotearoa as a whole
Phil Sage in comments to my previous post about Internet MANA observes that “The question is whether Kim Dotcom’s money will translate into poll support and votes.” I have no knowledge of what’s going on inside the Internet MANA HQ bar what’s been reported in the media, but those reports indicate a large full-time campaign staff, and that will burn a large share of the money. Matthew Hooton was on the wireless yesterday scorning this approach and saying the money will be pumped into glossy brochures and Internet ads nobody will watch. Which might be fair enough.
But wait, we actually have some data! Each election, David Farrar helpfully puts together a breakdown of party votes won versus dollars spent (CPV). The 2008 and 2011 tables were stolen from DPF, with thanks.
In 2011, almost all parties spent less than $5 per vote — exceptions were the Conservatives ($32), ACT ($26) and Social Credit ($20).
In 2008 the expenditure was higher and the field more spread, probably because the result was less certain and the stakes higher. (EDIT: Also, it appears the broadcast allocation was not included in the 2011 figures). The two main parties again spent less than $5, most others spent $10-15, and there were two outliers — RAM ($49) and Social Credit ($55).
Internet MANA in 2014
The first point here is that high polling tends to correlate with low CPV. Incumbency and brand value count for a great deal. So it is unlikely that any new party would be able to achieve good CPV by any means. To match the major parties Internet MANA would need to poll 25%, in which scenario Labour would effectively cease to exist. Even though that’s only a little over half of the “missing million”, it’s not happening.
My guess in the post was that Internet MANA would get 2-3% for $3 million. That would mean per-vote spending of around $50, far higher than any of the parties in 2011, on a par with the unelectable outliers in 2008. I still think that’s the most likely outcome.
If they tank and gain only what the combined Internet and Mana parties are polling now (1-1.5%) they would have outspent 2011′s most profligate parties by a factor of three in terms of CPV. This has to be the worst conceivable outcome for Internet MANA, and even so, it very probably yields them a second MP, assuming either Hone Harawira or Annette Sykes wins their seat. Anything more than this is gravy. Te Mana teaming up with Kim Dotcom is, at least tactically, a no-lose situation.
If they match 2011 CPV outliers the Conservatives, they would need to pull at least 100,000 votes — a tenth of their missing million — which would yield 5-7 MPs and make them a force to be reckoned with between now and 2017, giving them a platform to profoundly disrupt the plans of every other party in NZ politics. It’s unlikely, but with this sort of money, it’s not impossible.
UPDATE: Andrew Geddis points out in comments that I’ve failed to account for the electoral spending limit, which prevents Internet MANA from blowing the whole $3 million on declarable election expenses, which is what the cited 2008 and 2011 numbers cover. The expenditure limit is $25,700 for a constituency candidate and $1,091,000 for a registered political party plus $25,700 per electorate contested by the party.
So all the CPV figures in that last table are about double what they will be in reality, which means the premise and conclusions of this post are rather weaker than they seemed.
So Herman Melville described the crew of the Pequod. While it probably seems tendentious to equate them to the Internet MANA party, that seems to be how Kim Dotcom, at least, regards himself — as Captain Ahab, nailing his doubloon to the mast and urging them to seek the destruction of his Prime Ministerial Moby-Dick. But in spite of the many failings he, or Ishmael, attributed to them, that crew were good people, enormously effective, and very nearly successful in their hopeless task of hunting a single whale across all the oceans of the world.
In spite of Dotcom’s megalomania, Key — unlike the white whale — just doesn’t care that much. But in any case, the hauling-together of two unlikely vessels that form the Internet MANA alliance is more interesting than one rich eccentric’s personal grudge, or his attempts to avoid extradition.
The conventional reading of Internet MANA — even among some on the left — is that Kim Dotcom has colonised the Mana movement, buying himself a tame savage who’ll do his dirty work for him. But I don’t think so: I think the Internet Party is trying to bite off more than it can chew.
The Mana movement has always been about those outside the political mainstream. Even while he was forced into collaboration, Hone Harawira was plain about his radicalism. His legacy — barring some major change — is unlikely to be that period, or Te Mana, but the previous three decades of dogged activism in service of his people. One of these was his role in the haka party incident which demonstrated — or rather, reiterated after a long hiatus — to Pākehā New Zealand that Māori were’t going to take it.
Even so, if it were just Harawira this colonisation line might be fair — he’s a tough and principled guy, but running a fringe party without a benefactor — in the form of an electoral liege, or a millionaire backer, or both — is hard going. (Ask Winston Peters.) But Harawira is not alone. Both Annette Sykes and John Minto have decades of unglamorous and largely unrewarded activism behind them, and enormous credibility. Not among the National and Labour-voting public, but in radical and Māori circles, where it counts for their purposes. There is clearly some division — Sue Bradford quit the party, prompting a rush of right-wingers who have for decades said the most vile things about her to praise her integrity. But all in all, few people who know them believe that all of Harawira, Minto, and Sykes can be bought, in one go.
To which add Laila Harré. Many people have written that her appointment as leader of the Internet Party brings it credibility, and I agree. It is a brave, or reckless, appointment from Kim Dotcom’s perspective, because Harré is bigger than he is and, if elected, will influence the party more by leading it than he will by funding it — especially when his largesse runs out, as it inevitably will. Her parliamentary achievements have been limited because of her commitment to activism, but her record outside parliament has been more significant. She has demonstrated she can’t be bought, and is willing to hold her own line and walk away from a bad political situation, even when the stakes are very high.
What’s cleverest about this alliance is how neatly it separates ends and means. Morgan Godfery has argued persuasively that the alliance is a deeply conventional bit of strategy and an obvious next-step, from a Māori nationalist perspective, both mainstream and nationalist-insurgent political vehicles for Tino Rangatiratanga having been thoroughly co-opted by mainstream (white) imperatives. I would say further that it indicates a strategic maturity we have not yet seen from Māori parliamentary parties, and an elaboration of the māori party’s strategy of pragmatic coupling, though this time, to a vehicle it can more readily control. At least in this case, the Internet Party’s agenda is clear.
The two parties seem incongruous, and they are — but what they have in common is a claim to stand for those who feel like mainstream politics doesn’t speak for them, or listen to them. Both parties have links to the Occupy movement, and the policy platforms are pitched at groups with some core interests in common: those who are (or feel) criminalised or oppressed by the mainstream, and who wish to disrupt it. These include tech-libertarians and utopian futurists, internet “pirates” and disaffected geeks, anti-GCSB and TPPA activists, land rights and Māori sovereignty activists, actual socialists (as opposed to the Labour kind), the very poor and economically marginalised (especially rural, Māori), marijuana smokers, and a more fringey element of anti-Fluoride campaigners and other assorted cranks and conspiracists. In aggregate it seems clear that these people comprise more than 5% of the electorate — if only you can get them to vote. And that’s what Kim Dotcom’s millions are for: not so much to persuade them of a single, coherent policy platform, but to fly a radical banner to which the disruptors can flock. For this purpose they need not be all of one kind.
Te Mana has its own marginal voters, which comprise less than 1% of the electorate, and because of the difficulty of persuading it seems unlikely the Internet Party will mobilise much more. But a party vote total of 1.5% should see a second MP, and anything much above 2% should see a third, and this does not seem totally implausible. Even if these are “new” voters — not drawn from Labour or Greens — this probably comes at cost to the wider left if mainstream swing-voters are scared from Labour to National by the prospect of a left coalition including Internet MANA, as Danyl and Russell Brown have suggested. It might well be that the success of Internet MANA weakens Labour’s prospects, but it seems to have little chance of victory anyway, and has declared against Internet MANA, so a robust challenge from the left — as well as the one it has had from John Key on the right — is probably a good thing in the long term. What cares Mana for the neoliberal Pākehā Labour party’s fortunes?
Paradoxically, the addition of Internet Party voters would give Mana voters a stronger chance at locking the Internet party — and Harré — out if they are suspicious of Kim Dotcom’s influence. Harawira is facing a strong challenge in Te Tai Tokerau, but Waiariki is also close. If Labour, Green or Māori party voters tactically support Annette Sykes, hers could be the anchor seat. In this case, the second MP (whether he wins Te Tai Tokerau or not) would be Hone Harawira, with Harré third. Given that two or three MPs seems much more plausible than four or five, the most likely outcome seems to be that Te Mana is no worse off, possibly better off, and has a chance to swap Sue Bradford for the much more politically-viable Laila Harré. It looks less like the Internet Party colonising the Mana movement than the opposite.
David Cunliffe’s apparently-rash pledge to scrap the coat-tail rule that permits a party with less than 5% of the party vote to bring in additional MPs as long as it wins an electorate within 100 days turns out to not be quite so bold: it looks as if they simply intend to introduce Iain Lees-Galloway’s member’s bill — currently before Parliament — enacting (most of) the recommendations of the Electoral Commission as government legislation. That isn’t bad. It initially seemed as if he intended to ram through just this one cherry-picked rule under urgency, and some of us overreacted to it. There are still problems with the plan, but they are more complex.
Anyway, the episode throws light upon a lot of the tradeoffs and subtleties inherent in MMP — the major one of which is whether proportionality or equity in the distribution of proportionality is more crucial.
What MMP is good for
What it is not is an elegant expression of noble political aims. I guess this is why traditionalists dislike it viscerally: it feels kinda shabby, but it works.
“Rorts” and electorate-level match-fixing
Two things to add. The first is that the electorate clearly isn’t inclined to punish the ACT and UnitedFuture parties, at least not locally, because in the solitude of a cardboard booth, orange marker in hand, self-interest tends to overcome ethical compunctions. But the appeal to such compunctions is still the only way to reduce the viability of the “rorts”, so it is natural that those opposed will try to jawbone those compunctions. Patrick Gower is leading the charge here — although he, too, has been consistent in his derangement about this topic since before the 2011 election.
Second, the agreement between the Internet and Mana parties where Hone Harawira’s seat in Te Tai Tokerau will, they hope, bring in Internet party votes and list MPs is emphatically not of the same type as Epsom and Ōhariu, where major parties throw the electorate to exploit the coat-tail rule. Nobody is throwing anything in Te Tai Tokerau — in fact, it seems likely to be one of the most strongly-contested electorates in the country, a fact which is causing conniptions in some quarters. While the electoral outcome will look similar to the undiscerning eye, the Internet MANA deal is different — smaller parties allying to overcome structural barriers to their participation in democracy. Not only is it not only not a rort, it is perfectly just and rational behaviour in the face of an iniquitous system.
Consensus and timing of law changes
But timing matters: now that Internet MANA has declared its hand and chosen to take advantage of the coat-tail rule in a similar way as ACT and UnitedFuture, it would be unjust to change the rule immediately before the election. Depending on how things play, it might still be unjust to change the rule without further consultation after the election, because it may be that people see in the Internet MANA a new way to challenge the entrenched parties (I plan on writing more about this if I get time). For this reason it is good that John Key has ruled out supporting the Lees-Galloway bill.
Proportionality versus equity
Political clientism in an instrumental system is not so much morally or ethically wrong as it tends to degrade representativeness, and delivers huge benefits to the strongest parties — who have the ability to burn political capital to take advantage of these sorts of relationships — in ways other parties cannot. So while you get the appearance of more diverse representation, the effect is more that the liege party gets to offload political risk and responsibility to its vassals. The clearest case of the present government is the charter school policy that, had National passed it of its own volition, would have endangered Key’s moderate reputation. ACT’s presence in parliament — even without deputy leader Catherine Isaac, who was outrageously granted the sinecure implementing the charter schools plan — gave the government cover to implement policy they wanted, but which was too politically risky.
Self-interest dressed as principle
National’s refusal to implement the findings of the commission also come clearly down to self-interest. They are so far the major beneficiaries of the coat-tail provisions, having used their two vassal parties to good effect through both terms of their government.
Ultimately while both the major parties’ positions are self-interested, Labour comes closest to the right conclusion: that the iniquity of the coat-tail rule’s additional proportionality is a greater cost than the additional representation gained by it is worth. The best cure for the problem is to cut the party vote threshold — to 1/120th of the party vote, or a “full seat”, which would obviate the coat-tail rule. Scrapping the coat-tail rule is a rather distant second-best outcome, but doing that as well as cutting the threshold to 4% as recommended by the commission seems like the sort of compromise with which nobody will be totally happy, but which will endure.
Because functionality is what matters, not perfection.
Yesterday the Green Party released its Climate Tax Cut policy proposal comprising, mostly, a carbon tax offset by an income-tax-free threshold for individuals and a decrease in the company tax rate. There’s much to be said about the cleverness of the tax-swap policy and so on, but I’m more interested in the cultural differences I observe in Green supporters (who love climate-change mitigation policies) from the rest of the populace at large (who regard them as a necessary evil at best).
Seeing that this cultural gap results in an amount of criticism from greens directed at those less enthusiastic, this morning I put it into the form of a twitter-treatise, as follows:
This seems to me a pretty fundamental map/territory problem: people are cognisant of the threat of climate change and might be willing to do something about it, but are alienated by alarmist rhetoric, guilt-trips and castigation, and policies that might inconvenience them.
The Greens as an increasingly professional and mainstream political operation are, for the most part, pretty good at staying positive on this topic. But how are they to mobilise their activist base without bringing out the elitist and badgering tendencies that come so naturally when people are so convinced of their rightness that they genuinely can’t understand why everyone else doesn’t agree with them?
Posted on 21:18, May 27th, 2014 by Lew
I have noted with growing despair the xenophobia which is becoming a political commonplace this election cycle. On the left it’s about house prices.* But this post is not about racism; it’s about development.
The national median house price is $415,000, a figure skewed substantially upwards by the extraordinary cost of housing in Auckland. But you can buy a three bedroom house in Taumarunui for $26,000, or for $67,000 in Tokoroa. These are extreme examples, but for considerably less than half the median price you can buy a charming colonial villa in Tapanui ($149,500). For a little more than half the median you can buy a newly-renovated house on an acre in central Gisborne ($225,000). Similar houses are available for not very much more money in larger regional centres like Dunedin and New Plymouth, and that’s without considering many apartments, townhouses and more modest types of dwelling.
There are houses out there: there just aren’t jobs to go with them.
The chart above shows income and employment growth by region, and this is why the houses are so cheap. The growth is just not there. (From the Ministry of Business, Innovation and Employment Regional Economic Activity Report 2013).
The community likewise needs needs certainty in its new arrivals. A gold rush or an oil boom might provide jobs and cash, but it doesn’t provide certainty for either group. Certainty — and opportunity — comes from deep and sustained development. The fly-in/fly-out mining towns in Australia are a good example, and while that industry has been instrumental in maintaining Australia’s robust economy, its direct value to the regions has been limited — trickling down, lifting all boats — without the adoption of targeted development initiatives such as Royalties for Regions, which seek to return a share of the proceeds of industry to local communities.
As Eric Crampton said about the census income growth figures, increases in average wages across much of the South Island have been coupled with decreases in population, as people on low incomes move in search of better-paying work. Rob Salmond agreed, saying:
The regions with the supposedly highest median income growth also had some of the worst records in population growth, while the areas whose populations grew the fastest had relatively little change in median incomes.
Returning to the MBIE chart above, notice the regions in the top-right quadrant: the West Coast, Waikato and Taranaki. These are distinguished by two characteristic sectors: dairy, and mining, each of which provides a relatively small number of well-paid jobs within a narrow sector, skewing up the income levels but not necessarily changing the overall development picture very much. As crucial as the dairy industry, in particular, is and will continue to be to New Zealand’s economy, a complete solution to development it sure ain’t. Which is why you can buy an enormous Moorish-inspired villa for $220,000 in the middle of gas and dairy country.
Diversification and specialisation
In New Zealand we talk a lot about the roles of government in distributing wealth, and in ensuring public access to health, education and other scarce resources. These levers are well-recognised and there is at least a moderate degree of bipartisan agreement on their use. This is not the case with regional and economic development strategies, where there are deep practical and ideological divisions between the parties. I can see why the noninterventionist technocratic right parties like ACT and National are reluctant to consider — or even recognise the viability of — the sort of robust, hands-on regional development strategy that will sustainable economic and community growth in regional areas and persuade the frustrated and overcommitted residents of our major cities to risk a change. It will require considerably more input than building roads, granting mining permits and water rights to permit the extraction of value directly from the land. It will require a lot more than public-private partnerships and white-elephant monorails through virgin rainforest. It very likely will require PPPs, roads, and mining rights, though, meaning the left will have to reconsider some of its positions as well. It will require thorough investment in infrastructure, especially transport infrastructure, and purposeful community-building, possibly funded by a deeper cut from mineral royalties, a localised share of revenues from key industries, or loans from the government. It will probably require considerable autonomy devolved to the communities affected, and the strengthening — rather than the weakening, as is currently happening — of local government. It needs to be a little bit New Deal and a little bit Think Big.
Diversity is resilience, and our economy is very narrowly based. That must change. Different regions have their own strengths — environmental and historical, in terms of personnel and capability — and this represents an opportunity to improve the national economy holistically, by strengthening each of its component parts, rather than by building one economic muscle until it threatens to throw everything else out of balance. In many cases these nascent strengths will need considerable augmentation, and some will need to be developed almost from scratch. That requires significant and sustained investment in research and development — contributions to which the National government cut during the time when it was most crucial; when talent needed to be incentivised to stay here, and when industry needed to prepare to take advantage of the recovery, when it arrived. Public-sector research agencies can be beneficial in quite unpredictable ways, and when it comes to blue-sky research, patience can pay off enormously. If you’re reading this over Wi-Fi, you can thank the Australian government’s scientific agency, the CSIRO.
People and places
It is clear that having a critical mass of mobile public servants all located within a kilometre of each other can increase efficiency and cross-pollination in government and business. Some significant new businesses — such as Xero and Vend — clearly benefit from strong cohabitation and the development of their own start-up cultures. On the other hand, in the past decade telecommuting has become plausible for a large proportion of people whose work is predominantly reading, writing and talking on the phone, and the major reasons it is not more widely used are to do with middle-managers wishing to retain some measure of direct control over their staff, which they label “team culture”.
There are costs and benefits to decentralisation, but it is hard to shake the sense that government, and the public service, are growing increasingly remote from the people whose interests they ostensibly serve. The gap between the experience of living in Auckland or Wellington and living in the rest of the country is vast already, and is likely to grow. Over the long term, as regional development improves, mobility will increase, as the economic and cultural risk of moving to or from a major centre will decrease, and this seems likely to yield an even greater cross-pollination benefit than that sacrificed by decentralisation.
Political laziness from the left
Labour and the Greens have taken strong and well-articulated positions in favour of regional development and smart growth but they’ve also gifted the government an opportunity to reframe what is essentially an economic development debate as being about housing and migration, when the former is a symptom and the latter is all but irrelevant. As a consequence the whole discussion gets sucked into an unwinnable partisan slagging-match. This isn’t so much a failure of policy, but a failure of political emphasis. It should be relatively easy to correct: they mainly need to stop complaining about the yellow peril, and start talking about the future of a country where wealth and innovation is spread beyond its main centres.
Although I disagreed with his dismissive attitude towards the marriage equality debate, it seems likely that the once and future member for Napier, Stuart Nash, will be an important member of the Labour caucus in future. Late last year he argued persuasively that the regions are crucial not only for the economic wellbeing of the country, but for the wellbeing of that party, and so for the wider left. As he says:
If any party only holds seats in Akld, Wgtn, Chch and Dunedin, then they don’t have a particularly wide mandate to govern because they haven’t got MPs in caucus putting forward the views of the vast majority of geographic NZ.
To an extent it is understandable that this hasn’t happened yet. Development is hard. It takes a long time and a lot of money, and in a political context where governments change no less often than once per decade, it requires an uncommon degree of accord between increasingly diverse political movements. With the Greens now forming a substantial and apparently-permanent adjunct to Labour on the left, and the emergence of new climate-sceptic and anti-environmentalist sentiments within National and its allies, this is a big ask. But it needs to be done nonetheless. The regions aren’t going to develop themselves; they haven’t got the wealth or the people to do so, because it’s all tied up in tastefully-renovated villas on the North Shore and in Thorndon.
The reason we live out here is because out here is where we could afford to buy a house on one modest Wellington income. The idea was always to move into town at some point, but that has gotten more distant, not closer, over the past five years with Wellington’s housing market proving largely impervious to the recession. So off we go.
We anticipate significant benefits. My wife will be able to do something meaningful with her life other than raise our kids full-time or working as a rest home carer, worthy though both those tasks are. Commuting into Wellington would cost dozens of hours and hundreds of dollars a week, and at some point both of us would inevitably end up far from our young kids when they needed us. But not least among the advantages is the regional arbitrage of continuing to bring in something like a modest Wellington income while living in a place where houses are, very conservatively, $100,000 cheaper.
But there’s the thing: unless you’re privileged enough to work in a field where you can telecommute (and bosses who’ll let you), or unless you work in a literal field, moving from Auckland or Wellington to pretty much anywhere else in the country is a big risk. (In Christchurch, the case is much more complex.) You can move, but for many people, the opportunity is just not there, and the risk of giving up what you have is very great.
The government that raises those opportunities will find favour with those who want to move, those in the regions whose economies and communities are boosted by new growth, and those in the main centres who wish to stay, or must stay, who will have richer opportunities for doing do.
* On the right it’s more about asylum seekers (National) and internal threats to the colourblind state (ACT). The only party that seems clean of this is United Future, for which Peter Dunne should be congratulated.
The Diplosphere event on lethal drones held in Wellington last week was a good opportunity to hear different views on the subject. The majority consensus was that legal, moral and practical questions delegitimate their use, although one defended them and I noted, among other things, that they are just one aspect of the increased robotization of modern battlefields, are only efficient against soft targets and are seen as cost effective when compared to manned aircraft.
At the end of my remarks I proposed that we debate the idea that New Zealand unilaterally renounce the use of lethal drones in any circumstance, foreign and domestic. I noted that the NZDF and other security agencies would oppose such a move, as would our security allies. I posited that if implemented, such a stance would be akin to the non-nuclear declaration of 1985 and would reaffirm New Zealand’s independent and autonomous foreign policy.
Alternatively, New Zealand could propose to make the South Pacific a lethal drone-free zone, similar to the regional nuclear free zone declared by the 1985 Treaty of Rarotonga. I noted again that countries like Australia and Chile would oppose the move (both have drone fleets and do not discount using them in anger), but that many of the Pacific Island states would likely welcome the idea.
Either declaration would in no way impact negatively on the use of non-lethal drones, whose utility is obvious. It would also leave open to interpretation whether NZ based intelligence could be used in drawing up targeting lists for foreign lethal drone strikes, a subject currently in the public eye as a result of claims that the GCSB does exactly that in places like Yemen. The PM says he is comfortable with the intelligence-sharing arrangement as well as the legitimacy of drone strikes, and added that similar intelligence was provided for ISAF drone strikes in Afghanistan (where the US and the UK deploy lethal drones on behalf of ISAF).
His confidence notwithstanding, many Kiwis are opposed to any cooperation with lethal drone programs, so the debate could be expanded to include indirect NZ involvement with them.
I think this is a debate well worth having. I realize that the security community will want to keep all options open and be very opposed to ceding any tactical advantage in future conflicts, and that extending the ban to indirect cooperation would have a negative influence on NZ’s diplomatic and military-intelligence relations with its security partners.
I am cognizant that it may be a hard thing to actually do given the balance of political power currently extant in NZ and the hurdles needed to implement it should the proposition be accepted. One of the other panelists dismissed the idea of unilateral renunciation as simply impractical and said that the proper forum in which to advance it was the UN (cue Tui ad here).
Some may say that is silly to debate something that does not exist. New Zealand does not deploy lethal drones. However, UAVs are already present in NZ skies, both in civilian and military applications. This includes geological surveys and volcanic research, on the civilian side, and battlefield (tactical) surveillance in the guise of the NZDF Kahui Hawk now deployed by the army. The military continues its research and development of UAV prototypes (early R&D worked off of Israeli models), and agencies as varied as the Police, Customs and the Navy have expressed interest in their possibilities. Since non-lethal UAV platforms can be modified into lethal platforms at relatively low cost, it seems prudent to have the debate before rather than after their entry into service.
I am aware that the revulsion voiced by many against the lethal use of unmanned aerial vehicles might as well be shared with all manned combat aircraft since the effects of their deployment ultimately are the same–they deal in death from the sky. Given that commonality, the preferential concern with one and not the other appears more emotional than rational, perhaps responding to idealized notions of chivalry in war. That is another reason why the subject should be debated at length.
Such a debate, say, in the build up to a referendum on the matter, would allow proponents and opponents to lay out their best arguments for and against, and permit the public to judge the merits of each via the ballot box. That will remove any ambiguity about how Kiwis feel about this particular mode of killing.
UPDATE: Idiot Savant at No Right Turn has kindly supported the proposition. Lets hope that others will join the campaign.
It’s been almost a year since I wrote anything here. Things have been complicated. Anyway, this will — I hope, and circumstances permitting — begin a return to participation. All thanks due to Pablo for holding things together.
Today was budget day. The carnage in Australia with Joe Hockey’s first budget two days ago was worse than even the Abbott government’s enemies had predicted, with deep cuts to education, welfare, superannuation, science funding and many other fields, including the imposition of a $7 surcharge for GP visits. The contrast here could not be more stark: a return to surplus not immediately thrust into lowering taxes, modest cuts in some areas, increased entitlements in others, particularly in support for young families, and notably the extension of free GP visits to children under 13 years of age.
I’m no big-city economist so I’ll stick mainly to the political aspects. But it basically looks like Bill English’s sixth budget — somewhat like the preceding five, but to a greater extent — does a little good and almost no evil, and that basically ruins the opposition’s game plan, which relies on Bill English and John Key being terrible ogres that eat babies, rather than supporting their parents with leave entitlements. When the man touted as the Labour party’s most left-wing leader in a generation is reduced to complaining that John Key has stolen his party’s policy — as if that is supposed to be a bad thing — things are pretty dire. The opposition’s increasing desperation over the past six years, continuously prognosticating doom over the horizon, simply looks ridiculous when the doom never arrives. The government has snookered the New Zealand left by simply doing what it said it would do, and as Pablo argued persuasively at the start of the year, that makes clear how lacking the New Zealand left is in its strategic vision. They — Labour especially — are relying on the government to do their heavy ideological lifting, and when the government declines to be explicitly evil, the opposition is left with nothing to say.
When your enemies move to occupy your ideological ground, it is an opportunity to extend that ground, replacing what they claim from you with more advantageous ground deeper within your ideological territory. The trouble for Labour is that National has moved towards them, and Labour are still trying to fight them for the same ground rather than staking out more ground of their own. Six years after the “Labour lite” campaign that saw them ousted in the first place, they haven’t learned. Today’s budget has been tagged Labour lite by commentators including Bryce Edwards and Labour’s own Rob Salmond.
Due to assiduous work by National, and a conspicuous lack of it by Labour, “Labour lite” is now more or less indistinguishable from “Labour”, and Labour has offered no sort of “Labour heavy”; full-cream Labour, deep-red Labour, or whatever other metaphor you like. Because of this lack of difference, the electoral decision comes down to competence: of these two groups of mendacious grey technocrats, which is the least likely to inadvertently screw things up, or intentionally, as Jan Logie puts it, f&%k people over? That’s an easy answer: Labour demonstrates its lack of general competence every single day. If it’s not clear by now that they’re simply not as good at being the Nats as the Nats are, when will it ever be?
It’s too late, now, to change this ahead of the election. The die is cast. Labour has — again — decided to rely on political meta-strategy like syllogising failures of judgement or conduct by individual MPs out to the wider government, and it might have worked had they any sort of foundation to build upon. But they don’t. Far from full-cream Labour, Labour itself is Labour lite. Light-blue, even; 98% Ideology-free. If they’re going to play the National-lite game, they at least need to get good at it.