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A culture of tax evasion.

datePosted on 11:25, April 15th, 2016 by Pablo

I do not understand what the fuss is all about when it comes to John Key and the revelations in the so-called “Panama Papers.” So what if he and other Kiwi high rollers shield their incomes and assets from the IRD in assorted trusts, funds, investments and even shell companies? Isn’t it an axiom of capitalism that, as Donald Trump has openly stated, you try to avoid as much tax payment as possible? Forget all this nonsense about “paying one’s fair share of taxes.” Only rubes and idealists do that. Everyone else tries to minimise their tax exposure and the rich pricks just do so on a grander and more elaborate scale.

I say this because the entire NZ economy is riddled with tax avoidance. One of the things that struck me after I moved to NZ is the amount of cash transactions that are done with the explicit intention of avoiding tax. Almost every single tradesperson I have dealt with in the course of my time here has proposed a cash transaction that avoids GST, but more importantly, avoids traceable electronic or paper (cheque) financial transfers. And the offers of non-GST cash transactions are done without shame or concern; it is just part of doing business for many people and everyone knows it and acts accordingly based on their own circumstances.

If what I have seen in the small business trade and service sector is any indication, then it is reasonable to expect that such attitudes percolate upwards into larger corporate structures and repositories of wealth. Since these are too big to hide in a cash-only parallel market, the next best thing is to engage in tax evasion and income-hiding schemes whose complexity is based upon the ability of the tax authorities to uncover them. The move to off-shore trusts and the like is simply a matter of keeping one or two steps ahead of the law and three steps ahead of enforcement mechanisms. If those in government choose to structure the financial regulatory regime in such a way that it keeps the holders of wealth five to ten steps ahead of the tax authorities then, well, you get what you vote for.

The difference between the approach of NZ high and low rollers when it comes to tax evasion is in scale, not kind.

This is one reason why I believe that the Transparency International rankings that have NZ listed among the top three least corrupt nations on earth are rubbish.  Add to that the nepotism, cronyism, shoulder-tapping, sinecure swapping and insider trading of everything from personal and professional favours to board directorships to stock shares, and the picture of NZ is far less rosy and far more, let us say, “pragmatic.”  I am particularly critical of the TI indexes because not only are they mostly based on reputational analysis (mostly offered by those who stand to gain from gaming the system), but because I participated in a TI survey of NZ’s intelligence and defense forces and saw my scores (and those of some others) pretty much discarded in favour of higher scores offered by insiders that led to an overall TI assessment that NZ has the highest standard of professional integrity amongst the defense and intelligence services in the Asia-Pacific.

Even so, I am one of those who are a bit idealistic when it comes to taxes. I understand the concept of public goods and therefore comprehend the rationale behind taxation. In NZ I pay tax more readily at a higher rate than I did in the US because, among other things, I am not paying to support a huge war machine that in turn serves the interests of a taxpayer subsidised military-industrial complex. As a small business owner I feel the burden of taxation more heavily and immediately than the corporate moguls that run the nation’s largest firms and whose bottom lines rest on minimising two things: their tax liabilities and their labour force wage bills. Yet I try to believe that I am contributing my small bit towards maintaining a high standard of public education, health and welfare that will lead to future generations of productive and happy citizens (although my experience with NZ academia suggests seriously diminishing returns in that sector, and I have serious doubts that overall heath, education and welfare outcomes are on the rise rather than in decline as a result of nearly a decade of National government public policies).

In spite of these misgivings, I remain a residual idealist and want to believe that my contributions, when taken collectively with those of others, matter for the present and future well-being of NZ. But I do not expect others to share the same hopelessly naive view of how the systems works, and I therefore do not begrudge them trying to dodge the taxman as much as possible. Because in a country where market-reifying ideologies reign supreme in virtually every facet of life, only a fool like me would think that paying taxes is anything but state-imposed theft levied on the productive in order to buy the acquiescence of the parasitical. I know this to be true because National, ACT and certain elements in Labour tell me so, and who am I to argue with those who dominate our economic, political and social narrative?

Media Link: Brussels’ heart of darkness.

datePosted on 19:56, March 23rd, 2016 by Pablo

I wrote a short opinion piece in the Herald outlining some of my thoughts about the Brussels terrorist attacks. Unless the root causes of the problem are addressed, there will be no end to them. Even if they overlap in the form of foreign fighters, those root causes primarily reside in the disaffection and alienation produced by socio-economic and cultural grievances at home rather than in the conflicts of the Middle East. The solution is to be proactive as well as reactive to the threat posed by domestic radicalisation, and that involves social reform as well as better human intelligence collection in the communities from which home-grown jihadists emerge.

Too Clever.

datePosted on 15:59, February 11th, 2016 by Pablo

The TPPA signing came and went, as did the nation-wide protests against it. I did not think that the government was going to be swayed from publicly commemorating what it considers to be the crown jewel of its trade-dominated foreign policy, but I had hoped that the numbers turning out to protest would add up to more than 100,000. At least that way the government could be put on notice that a sizeable portion of the electorate were unhappy about the surrender of sovereignty to corporate interests enshrined in the 6000 page text. Alas, the numbers assembled came nowhere close.

One interesting sidebar was the decision to stage a parallel protest at the Sky City complex  rather than join with the larger protest march down Queen Street. The specific objective of the Sky City protest was ostensibly to use so-called non-violent direct action (NVDA) and other acts of civil disobedience to block the streets surrounding the gambling complex. In the build up to signing (and protest) day the leaders of the two rival demonstrations publicly debated and largely disagreed on the merits of each. The Queen Street march organisers were concerned that any pushing and shoving at Sky City would feed into the government’s narrative that the matter was a law and order issue (following reports that the police had conducted riot control refresher training and door knocked activists warning them about the consequences of unruly acts). The leaders of the Sky City blockade argued that peaceful marches were simply ineffectual and were ignored by policy-makers. As it turns out, both were right.

The Sky City protesters, some of whom showed up in helmets and assorted face coverings, were forcibly prevented by the Police from effectively shutting down access to and from the venue and surrounding areas. The activists responded by engaging in a series of rolling blockades of major intersections, including the Cook Street on-ramp leading to the Harbour Bridge and Northern Motorway. This continued well after the signing ceremony was over and while the Queen Street march was still in progress. That had the effect of causing gridlock in the Auckland CBD.

Coincidentally or not, there was a bus strike that day. Although Auckland Council allowed its employees to work from home, many other entities did not. That meant that people who normally used buses to get to work had to use alternative transportation, including cars. That added to the number of cars on Auckland inner city roads at the time of the rolling blockades. Needless to say, motorists were not happy with the seemingly random temporary road closures in and around the CBD.

That is why things got too clever. As a tactical response to the police thwarting of the initial action, the move to rolling blockades was ingenious. But that bit of tactical ingenuity superseded the strategic objective, which was to draw attention to the extent of TPPA opposition. In fact, it appeared that the Sky City activists were trying to outdo each other in their attempts to make a point, but in doing so lost sight of the original point they were trying to make. After all, blocking people from leaving the city after the signing ceremony was over was not going to win over hearts and minds when it comes to opposing the TPPA. Plus, it displayed a callous disregard for the motorists affected. What if someone was rushing to a hospital to be with their badly injured child or terminally ill parent? What about those who needed to get to work on time so as to not be docked pay? What about cabbies and delivery people who earn their livings from their vehicles? None of this seems to have factored into the blockader’s minds. Instead, they seemed intent on proving to each other how committed they were to causing disruption regardless of consequence to others.

I have seen this before in other places, most recently in Greece, where anarchists and Trotskyites (in particular but not exclusively) infiltrate peaceful protests and engage in acts of violence in order to provoke what are known as “police riots” (a situation where isolated assaults on individual police officers eventually causes them to collectively lash out indiscriminately at protesters). Fortunately, NZ does not have the type of violent activist whose interest is in causing a police riot. Unfortunately, it has activists who seemingly are more interested in establishing and maintaining their street credentials as “radicals” or “militants” than using protest and civil disobedience as an effective counter-hegemonic tool. So what ended up happening was that the Sky City protestors were portrayed by the corporate media and authorities as anti-social misfits with no regard for others while the Queen Street march was briefly acknowledged, then forgotten.

On a more positive note, Jane Kelsey has to be congratulated for almost single-handedly re-defnining the terms of the debate about TPPA and keeping it in the public eye. As someone who walks the walk as well as talk the talk, she was one of the leaders of the Queen Street march and has comported herself with grace and dignity in the face of vicious smears by government officials and right wing pundits lacking half the integrity she has. I disagree about the concerns she and others have raised about secrecy during the negotiations, in part because I know from my reading and practical experience while working for the US government that all diplomatic negotiations, especially those that are complex and multi-state in nature, are conducted privately and only revealed (if at all) to the public upon completion of negotiations (if and when they are).

For example, the NZ public did not get to see the terms of the Wellington and Washington Agreements restoring NZ as a first-tier security partner of the US until after they were signed, and even today most of their content has been ignored by the press and no protests have occurred over the fact that such sensitive binding security arrangements were decided without public consultation. More specifically with regards to the TPPA, no public consultations were held in any of the 12 signatory states, and in the non-democratic regimes governing some of those states the full details have still not been released. Even so, I do think that it was a good opposition ploy to harp about “secrecy” as it simply does not smell right to those not versed in inter-state negotiations. In any event, what Ms. Kelsey did was exactly what public intellectuals should be doing more often–informing and influencing public opinion for the common good rather than in pursuit of financial or political favour.

I would suggest that opponents of the TPPA focus their attention on the Maori Party and its MPs. The Green Party’s opposition to TPPA is principled, NZ First’s opposition is in line with its economic nationalism and the Labour Party’s opposition is clearly tactical and opportunistic (at least among some of its leaders). So the question is how to wrestle votes away from the government side of the aisle when it comes to ratification. Peter Dunne and David Seymour are not going to be swayed to change sides, but the Maori Party are in a bit of an electoral predicament if they chose to once again side with the economic neo-colonialists in the National government.

For all the sitting down in the middle of public roadways, it may turn out that old fashioned hardball politicking may be the key to successfully stymying ratification of the TPPA in its present form.

Now THAT would be clever.

 

This is not the discussion you are looking for

datePosted on 10:39, July 22nd, 2015 by Lew

“They are so many, and our country is so small. Where will we find space to bury them all?”

— Finnish soldier during the Winter War, 1939

“We have won just about enough ground to bury our dead.”

— Red Army general during the Winter War, 1940

With their horrendous Chinese housing investment analysis Labour hoped to start a discussion. Well, they’ve done that. For 11 days until yesterday, the story led, or nearly led the news. The question is: are they happy with the discussion they’ve started?

They may really have wanted a discussion about race, dressed up as a discussion about housing, or they may have genuinely wanted a housing discussion with a slight racial frisson. Regardless of their hopes and ambitions, the party at this point has to have a long, hard look at their choices, for in reality, they’ve had neither of these two things. What they have had is an excruciating public discussion about one of the most boring and alienating topics it is possible to imagine: research ethics and methodology. For eleven straight days, during most of which time they had the agenda to themselves because the Prime Minister was out of the country, Labour has unsuccessfully defended its commitment to good social science practice.

Unsuccessfully, because yesterday, 11 days on, an increasingly frustrated Labour leader was still defending the data. “This is how the debate gets out of control,” said Andrew Little to Patrick Gower — and for once, he was right. “The Auckland housing market is not a morality play,” said housing spokesperson Phil Twyford, and he was right, too, but that’s all anyone has been talking about for 11 days.

Earlier in the day the party’s statistical guru Rob Salmond
half-arsedly apologised, on the fourth page of comments on a blog post, for misrepresenting three of his most rigorous methodological critics in a column published in the Sunday Star Times, which is read by somewhere north of 100,000 people. Three critics — Keith Ng, Tze Ming Mok, and Chuan-Zheng Lee, all of whom just happen to be Chinese, and who seem, horrifyingly, to have been misrepresented so as to give Labour the ability to say “look, we can’t be racist, here are these three Chinese people who agree with us!”

This is a horror show. Quite apart from giving unreconstructed racists an opportunity to pretend outrage, and appropriative neo-colonialists grounds to go around trumpeting about the coming race war, Labour has spent 11 days debating the definition of “is”, losing, and looking like mendacious buffoons into the bargain. Quite apart from the vileness of this exercise, it has been handled even more badly than I have come to expect.

They need to just stop. There is no ground to be won by these means, and further fighting will mean more dead to bury. The only poll since the announcement has them effectively stagnant, following a poll taken mostly before the announcement, which had them well up. Pretending nothing is wrong with their work, that their high-minded-if-admittedly-risky project has been hijacked by a mendacious media and the leftist-liberal fifth-column is no kind of strategy, even if it were true. The keys to the twitter accounts need to be taken away and, as much as possible, a dignified silence maintained. Go away and get some evidence, find a way to return the discussion to the issue of housing prices and non-resident investment, because those are serious issues about which we deserve a serious discussion which Labour’s delusional incompetence has rendered impossible.

L

Guest Post by Kate: Human Rights are Universal.

datePosted on 08:42, May 8th, 2015 by Pablo

On returning this week from his trade mission in the Middle East, John Key stated on Breakfast TV that countries such as Saudi Arabia have views of human rights that are “different” from our own, justifying the government’s decision to exclude human rights issues from any trade agreement that New Zealand is able to secure in the region. That is putting it rather mildly. Saudi Arabia has one of the consistently worst human records in the world. While the mainstream media is quick to focus in on a discriminatory gender regime that bans women from driving and requires them to be covered from head-to-toe, such problems pale in comparison to the treatment of the foreign workers who make up at least a third of the country’s population, or the torture, imprisonment, and death sentences handed down to Christian converts, human rights workers, activists, journalists, and other critics of the ruling elite. Unlike the distinctly Saudi approach to gender relations, it is difficult to see how the Saudis themselves could seriously attempt to justify such severe human rights abuses in religious or cultural terms.

What is especially surprising about the Prime Minister’s statement is that, if he genuinely believes that Saudi Arabian understandings of human rights are “different” rather than simply wrong, this would put him far over on the fringes of moral philosophy into the cultural relativist camp. This is a space occupied only by academic extremists who have followed the logics of social constructionism to their absolute and final conclusions (i.e. there is no such thing as truth, which makes it rather hard to speak truth to power as many of these theorists seem to want to do), or a small minority on the extreme right, which proposes that liberal values can only ever be achieved in supposedly superior Western cultures. Sticking to this line of argument means that anything whatsoever can be justified in cultural terms to the point where, essentially, nothing practised by any society at any point in history can be criticised at all. What strange company for a Mr. Moderate who usually tries to avoid coming to any conclusions that could undermine his apparently undying popularity to be found in.

Furthermore, this is not the generally shared understanding most reasonable people have of these issues. In fact, New Zealand, along with just about every other country in the world, is a signatory to the Universal Declaration of Human Rights, adopted in the wake of the horrors of World War Two and aimed at establishing a basic set of rights and liberties that countries should do their very best to uphold. Least it isn’t clear from the title of the Declaration, most of the world believes that human rights are universal, Mr. Key, not particular.

Saudi Arabia, by the way, does not accept these principles, rejecting the Declaration on the grounds that guaranteeing freedom of religion would be detrimental to the country’s own traditions, and that its own version of Islamic law supposedly upholds a higher threshold of human rights than this or any other international agreement. By far the more important point, however, is that New Zealand is itself a signatory to the Universal Declaration, which not only obligates us to ensuring that we uphold basic human rights within our own borders, but also to promote human rights abroad.

Yet when it comes to trade agreements, the explicit approach adopted by both recent centre-right and centre-left governments has been to exclude human rights from the negotiating agenda. This puts us at odds with the other members of the international “club” we belong to, to use another of the Prime Minister’s terms. Based on academic research, the World Trade Organization states that about 75 percent of contemporary trade agreements include human rights clauses, whether binding or non-binding, driven largely by the human rights promotion agenda of Canada, the European Union, and yes, the United States. It obviously cannot be assumed that these clauses always lead to substantive improvements in human rights outcomes, but they are a start.

The real reason behind both National and Labour’s exclusion of human rights concerns from the negotiation of trade deals is two-fold. Firstly, to state the obvious, New Zealand is very small in global terms, and thus cannot exercise much leverage over larger countries in the Asia and the Middle East. When countries are dependent on us for aid, absolutely do we try to influence human rights, most notably in the Pacific (which also occasionally invokes issues of culture and human rights that I don’t intend to get into here). Realistically, if we are to incorporate human rights concerns into our trade relations framework, this might more successful if done through multilateral arrangements—yet is it difficult to see human rights becoming a major concern of the kind of multilateral trade deals that New Zealand has wedded itself to, such as the Trans Pacific Partnership.

Secondly, the bipartisan approach reveals not only a deep ideological commitment to free trade that is not necessarily shared by other developed countries, in which the influence of large protectionist interest groups often moderates that stance, but a rather naïve belief that trade deals and trade relationships can be separated from everything else. Despite good empirical and historical evidence that trade cannot be viewed independently from other aspects of foreign policy, we do this with regard to our security relations, in which government officials cannot see the long-term problem emerging out of the contradiction between an Asia-oriented trade policy and a Five Eyes-oriented security one, and we also apparently do it when it comes to more noble causes.

So herein lies the hypocrisy not only of our current leadership, but all those sectors of our community who stress trade above all other national goals. We tend to have a rather rosy view of our country not only as an independent voice in the international arena, but as a progressive force in the big wide world. We ban nuclear ships and we save whales. We were the first to give women the vote and at least some of protested against the Springbok Tour. We think we deserve a seat on the Security Council because we are nice (alternatively, to carry on the theme, there are those who no doubt think it will help us out on the trade front). Not caring—or pretending not to care— about the worst instances of human rights abuses, however, not only threatens to undermine this aspect of our national identity, but undermines both our reputation and potential as a global player that punches above our weight on moral issues.

There has been a fair bit of public debate about the decision to send NZ troops to Iraq. I have had my say on this so will not go over the pros and cons. What has struck me is the clear divide between those who see NZ as a global actor that needs to “play the game” in accordance with its international commitments and obligations, and those that maintain that NZ needs to steer clear of foreign entanglements at any cost.

Let me start with the latter. The isolationist wing of NZ public opinion has a fair dose of pacifism layered in it, often tinged with strong anti-Americanism (especially amongst the activist Left). But isolationism in NZ is rooted in more than pacifism or anti-imperialism, and appears to be born of the idea that being small and far away from the world’s major conflict zones, NZ simply has no dog in those fights and invites unwanted attention should it join them. It should therefore steer clear of messy involvement in places like Iraq and pay more attention, if at all, to its nearest neighbours.

There appears to be a fair bit of isolationist sentiment on the political Right as well as the Left, particularly amongst those of a Libertarian persuasion that value non-interference in the sovereign affairs of others as strongly as the pacifist Left does.

However, for a country that is utterly dependent on trade and long-cultivated international diplomatic, cultural and political ties for its material and social well-being, this would seem to be a bit of a contradiction. It is hard to determine if it is born of popular ignorance of the linkages between trade, diplomacy and security (“issue linkage” in the academic parlance), or because there is simply a “cannot be bothered” attitude amongst the general public (especially the young, as my university teaching friends point out to me).

What does seem clear is that, as in many other countries, the lower one descends the socio-economic totem pole in NZ, the more likely is the prevalence of isolationist views. My reckon is that this is due to the fact that lower class (defined as subsistence wage labourers) or disadvantaged sectors of society are too busy with the rigours and trials of everyday existence to find time to ponder the intricacies of foreign policy, especially when these do not have a discernible and immediate impact at home (in another manifestation of what I have called “survivalist alienation” in other writings).

On the other hand there are two types of internationalists in NZ: so-called multilateralists who believe that all international problems require collective solutions preferably brokered by international organisations such as the UN; and traditionalists who maintain that NZ is bound to join and support its traditional (Western) allies when push comes to shove in the international arena. This latter stance has been complicated by NZ’s increasing trade dependence on Asia, and the PRC in particular, but as of yet the “traditional” focus on Western alliances and forms of international exchange appear to continue to dominate the public imagination.

I am not sure that the thought processes that distinguish multilateralists from traditionalists have filtered down into the public consciousness to the point that such distinctions are made on a general level. Instead, it seems that these viewpoints exist only in the minds of the informed public and political society (to include public bureaucracies and private firms) rather than the “average” Kiwi, especially in non-Pakeha populations. I say the latter because if one looks at the composition of the foreign policy-making elite, it has an extremely strong Pakeha demographic that reflects the economic, political and social values of the upper classes from which it is recruited.

I do not wish to be controversial about this last reflection and am happy to stand corrected if in fact NZ’s internationalist foreign policy perspectives are significantly (as opposed to symbolically) informed by maori, Pacifika and other non-Pakeha voices. It is clear that Asian perspectives have begun to temper the traditionally Anglo-centric views of the foreign policy elite, but I am not sure if that translates into the full embrace of multilateralism over traditionalism , or whether it trickles down to the level of the Kiwi Asian “street.”

Whatever the distribution of isolationists and internationalists in NZ society, the absence of public debate on most issues of foreign policy and the disingenuous approach taken by successive governments to the subject of foreign policy in general and to sensitive subjects like military adventures in particular have not helped clarify where the NZ public stands on matters that are, again, fundamental to the country’s well being over the long-term. For that to happen there has to be a critical media and a curious public that demands of politicians that they address honestly and openly where they stand on NZ’s international position and role. Only then can the weight of public opinion genuinely influence what is to date an elite conversation conducted with minimum popular consultation.

That is not likely to happen anytime soon.

Big Vehicle

datePosted on 01:12, September 24th, 2014 by Lew

The matters I discussed in the previous post to do with reality-adjacent campaigning are about targeting voters with messages they can grok about issues they care about. But empiricism is not much good for deciding a party’s ideological values or for developing policy. Parties made up of committed ideologues remain indispensable for that reason.

As is often pointed out to me, I am not such a person. I have never been a member of a party, nor involved in a campaign, and I have little desire to do either. For some people this means I obviously don’t know what I’m talking about; fair enough. As an analyst, I prefer the outsider’s perspective. I don’t feel any pressure to be loyal to bad ideas or habits, and I try to answer only to the evidence. Ironically, though, there isn’t much hard evidence for the arguments I’m about to make about the medium-term future of the NZ left. Nobody has any. It’s value-judgements all the way down. So my reckons are as good as anyone else’s, right?

“That doctrine of the Little Vehicle of yours will never bring the dead to rebirth; it’s only good enough for a vulgar sort of enlightenment. Now I have the Three Stores of the Buddha’s Law of the Great Vehicle that will raise the dead up to Heaven, deliver sufferers from their torments, and free souls from the eternal coming and going.”
— Bodhisattva Guanyin, Journey to the West

For mine, the major shift from the 2014 election — apart from the unprecedented dominance of the National party — is away from Small Vehicle politics and towards Big Vehicle politics. Only National and NZ First gained modestly. All other parties all failed to meet the threshold or lost support. The destruction of Internet MANA and the failure of a much-improved Conservative party demonstrates that there is no tolerance for insurgency, and the cuts to Labour and the Greens indicates that any confusion or hinted shenanigans will be brutally punished. National can govern alone; it is including ACT, United Future and the Māori Party as a courtesy, and to provide cover. This is Key’s money term. It should be a period of grand political themes and broad gestures, and the left needs to attune itself to this reality: Labour needs to take the responsibility of being a mass movement with broad appeal and capability; a Big Vehicle. The Greens will hopefully get bigger, but I think they will remain a Small Vehicle, appealing to relatively narrow interests, however important they are.

Assuming it doesn’t annihilate itself utterly in the coming weeks, Labour will be the core of any future left-wing government, but the strategies that served it poorly as a substantial party of opposition will be utterly untenable in its diminished state. Throughout most of the past six years, Labour has been the party opposed to National. They haven’t been a party that clearly stands for anything, that projects the sort of self-belief that National, the Greens, and even NZ First does.

Labour therefore needs to re-orient its conduct and messaging to its core values, and those are fundamentally about secure and prosperous jobs for the majority of working people, and those who rely on the state as the provider of last resort. But I am emphatically not calling for a retreat to doctrinaire materialism at the expense of superstructural considerations. The demographic groups that kept Labour alive this election were women (6.6 points higher than men), Māori, and Pasifika, and the party would be insane not to recognise the debt that they owe these voters. Of 11 MPs in whose electorates Labour won the party vote, only one — David Clark — is Pākehā, and in his electorate of Dunedin North Labour got 24 votes more than National. Five (Williams, Mahuta, Sepuloni, Wall, and Whaitiri) are women. The return of Te Tai Hauāuru, Tāmaki Makaurau and especially Te Tai Tokerau to Labour underscores the opportunity that exists to reconnect with Māori.

There will be enormous pressure to begin taking these voters for granted again, and it must be vigorously resisted. As for talk of reaching out to “the base” — a party’s “base” is who votes for it when it is at its lowest. Labour’s base as demonstrated by the 2014 election is comprised largely of working-class women, Māori, and Pasifika. So policy proposals that impact those groups more directly — parental leave, free healthcare, ECE, support for family violence services, social welfare — should not be neglected. By and large, though, these voters will also be motivated by many of the same concerns that speak to anyone else, particularly as the National government’s policies begin to bite. But the party’s appeal must expand well beyond this base into the centre ground. It need not be zero-sum. Labour cannot afford to be caricatured as a party that only cares about those groups, it must be a party that a broad range of people feels like it could vote for — like the party understands their needs, and would act in their interests. The key is framing messages and policies in ways that speaking to the base without alienating the broader public, and to the broader public without excluding the members of these base demographics groups, using separate channels and emphasis where necessary. The key term here is “emphasis”.

The party also has to be smarter and more pragmatic than it has been, especially in social policy. At a minimum, this means an end to opposing Whānau Ora on principle. The new MP for Hauāuru, Adrian Rurawhe, speaking to Radio New Zealand’s Te Ahi Kā on Sunday, has a strong line on this: to not attack the philosophy, to not attack the model, but to attack the implementation of individual schemes. There’s a distinction between cartelised privatisation of service delivery, and self-determination, and a party of Māori aspirations should work, even in opposition, to strengthen and entrench the latter so it can succeed. National has spent six years making policies targeted at Māori, run by Māori and under Māori delivery models politically and culturally acceptable, and has made enormous progress on Treaty claims. Labour must capitalise on these gains. They also provide an opportunity to reach out to the Māori Party, should they survive another term in government and remain viable.

The same imperative also means collaborating with the government on distasteful topics like RMA reform, regional and rural development, and charter schools. The battle over whether these will happen is comprehensively lost; the questions now are how badly are they going to be done, and how much political capital will be wasted in trying to unshit the bed later. Better for Labour to work collaboratively with the government to limit the damage and make the best possible use of the rare opportunity to reform entrenched systems. Let the Greens fight them. Don’t worry! There will be plenty else to oppose.

The Greens are here to stay, and Labour should not be reluctant to bleed some of its liberal-activist support to them, to make up bigger gains elsewhere. This will infuriate many in the activist community, and most everyone on Twitter, but my sense is nearly all of those folks vote Green anyway, and they will be in safe hands. Labour hasn’t been a radical or activist party in recent memory, except for 1984-1990, and we know how that turned out.

There is an opportunity to coordinate and make use of the temperamental differences between the parties, with the Greens taking a more vigorously liberal and activist role against Labour’s moderate incrementalism. The strategy that has been proposed intermittently for ages that Labour should attack the Greens directly is insane — the two parties, while allied, do not and should not substantially share a constituency. Labour, like National, is is a mass movement of the people, and should become more so; the Greens are a transitional insurgent movement seeking to influence the existing mass movements, and they seem intent on continuing in that role.

Of all the Small Vehicles, the Greens are best equipped to thrive in a Big Vehicle-dominant context. New Zealand First will struggle. While Labour should collaborate with the Greens, Labour should contend with NZ First, and aim either to gut it of its voter base or, more plausibly, to drive it towards National where the inevitable contradictions and ideological enmities will probably cause harm to both parties. ACT and United Future are wholly-owned by John Key and are effectively irrelevant.

The worst case for Labour, apart from continuing in the blissful ignorance that nothing is really wrong, would be a retreat into sullen populism, trying to out-Winston Winston or out-Key Key, or chucking the vulnerable passengers overboard so that the ship might float a little higher in the water for those who remain. The party has to have its own identity and its own motive force, and it has rebuild its own constituency. It can be done. I hope they can do it, because we haven’t had an effective Labour party for a long time now, and we really need one.

L

Left in tatters.

datePosted on 12:14, September 21st, 2014 by Pablo

A while back I wrote a post arguing that the NZ Left was in serious disarray. Various Left pontificators fulminated from the depths of their revolutionary armchairs against my views, denouncing me for being defeatist. I responded as politely as I could.

Last night conservative, ring wing parties won nearly 64 percent of the popular vote. Left wing parties–such as they are given Labour’s pro-capitalist bent, the Green’s turn to the middle and Internet/Mana’s schizophrenic leanings–mustered 36 percent of the vote. The message is clear: New Zealand is a right-leaning country. Nearly 30 years of pro-market policy (an entire generation’s worth) has resulted in a country that no longer considers egalitarian and redistributive principles as hallmarks of the national identity. Instead, the turn to self-interest has seeped deeply into the social fabric.

That is the context in which the NZ Left must operate. That is the context that I was writing about in my earlier postings. And that is the context that we will have for the foreseeable future unless the Left learns to shift the terms of the political debate off of tax cuts, deficits, public spending, workforce flexibility and other pro-market arguments. So far it has not done so and in fact has often tried to operate within the context and political debate as given. Perhaps last night’s drubbing will make the Left realise that this is a mistake.

After all, those who define the terms of the debate are those who win.

In order for the Left to re-define the terms of political debate in NZ there has to be a plausible counter-argument that can compete with the language of austerity, limited government, non-interference and self-interested maximising of opportunities. This election campaign demonstrated that concerns about civil liberties, privacy, child poverty, environmental degradation, corporate welfare, predatory trade and other progressive cornerstones took a back seat to economic stability as defined by market ideologues.

Given that fact, the process of re-definition has to start there: basic definition of economic stability. One way to do so if to move off of the usual market analytics favoured by bankers and corporates and onto the social costs of an increasingly unequal division of labour. Because the price for market stability is seen in a host of variables that are not amenable to standard market analysis, yet which are as real as the glue sniffing starved kid living rough and begging for change on the increasingly mean streets of Godzone.

Double Trouble.

datePosted on 13:03, September 15th, 2014 by Pablo

Glenn Greenwald’s arrival in NZ has reignited controversy over who, exactly, the GCSB spies on, how it does so, and for whom it does so. Tonight he will outline what he has gleaned from the Snowden leaks, and I have no doubts that what is revealed will be of serious consequence. The impact will be twofold.

So far, most attention has focused on the domestic side of the equation, in the form of claims that the GCSB, in concert with its 5 Eyes partners, conducts mass surveillance of New Zealand citizens and residents. The way it does so is to tap into the broadband infrastructure in order to extract so-called “metadata,” that is, the key identifiers of cyber messages such as time, sender, internet addresses and geographic locations of those communicating, etc. This information is stored and later subject to data mining from technologies like X Keyscore, which searches for keywords and phrases that can justify opening the metadata in order to reveal the contents of the messages identified by the data-mining technologies.

In simple terms, it is like going to people’s postboxes and recording all of the identifying features of their mail without opening the mail itself unless key identifiers allow the government to do so.

The government maintains that a) it does not collect metadata on New Zealanders and NZ permanent residents; and b) that collecting metadata is not equivalent to mass surveillance in any event since the contents of the messages from which metadata is extracted are not accessed unless there are reasons of national security to do so, and this occurs only in a handful of instances.

The reality is that because of a gentleman’s agreement between the 5 Eyes partners, metadata of the citizens of one partner state is accessed and collected by one or more of the other partners and only sent to the originating state if data-mining indicates that there is reason to open the contents of specific metadata “packages” concerning citizens or residents of that state. In this way the originating state government can claim that it is not engaged in mass surveillance of its own citizens or residents.

That may be parsing the meaning of “mass surveillance” beyond useful construction, but it does allow the government to deny that it conducts such mass surveillance on technical grounds–i.e., metadata is not the same as a private communication because it has no content.

The problem with such specious reasoning is that it violates two foundational tenets of liberal democracy: the right to privacy and the presumption of innocence. If it is considered an untoward invasion of privacy for the government or others to systematically rifle through and record the identifying features of correspondence in people’s mail boxes, then it is equally a violation of  citizen’s rights to privacy for the government to electronically collect and store their cyber metadata.

Moreover, the mass collection and sharing of metadata by 5 Eyes intelligence agencies violates the presumption of innocence that citizens of democracies are supposedly entitled to. That is because the metadata is collected without cause. The government does not have a specific reason, suspicion or motive for collecting metadata, it just does so because it can under the aegis of “national security.” It then subjects this metadata to data-mining in order to find cause to conduct more intrusive searches of the contents.  It is, in effect, trawling through everyone’s cyber communications in order identify and presumably counter the nefarious behaviour or plans of some individuals, groups or agencies.

This strikes at the heart of democracy. Yet the remedy is fairly simple. Under legal challenge the government can be forced to show cause for the collection of metadata of its citizens and residents. If it cannot, then the courts can deem such collection to be illegal in all but the most exceptional circumstances. With that judgement–and I very much doubt that any High Court would find it reasonable or permissible to engage in mass metadata collection without cause–intelligence agencies are put on notice and henceforth proceed with metadata collection and sharing at their peril.

In contrast to the attention directed at the issue of mass surveillance, there is a far more damaging side to Greenwald’s revelations. That is the issue of the GCSB and 5 Eyes espionage on other countries and international agencies such as the UN or non-governmental organisations as well as foreign corporations, financial institutions, regulatory bodies and the like. Such external espionage is part of traditional inter-state intelligence gathering, which includes economic, military and political-diplomatic information about targeted entities.

Judging from what has already been revealed by the Snowden leaks with regard to the external espionage activities of the other 5 Eyes partners, it is very likely that Greenwald will reveal that NZ, through the GCSB in concert with 5 Eyes, spies on friendly or allied states as well as hostile state and non-state actors such as North Korea and al-Qaeda. This may include trade or diplomatic partners. It could well include economic or commercial espionage.

The impact of such revelations will outweigh the repercussions of the domestic surveillance aspects of the Snowden leaks. With the nature and extent of NZ’s espionage made public, its reputation as an independent and autonomous “honest  broker” in international affairs will be shattered. Its pursuit of a UN Security Council seat could well go up in smoke. But above all, the response of the states that have been and are targeted by the GCSB will be negative and perhaps injurious to NZ’s national interests. The response can come in a variety of ways, and can be very damaging. It can be economic, diplomatic or military in nature. It could involve targeting of Kiwis living in in the states being spied on, or it could involve bans or boycotts of NZ exports. The range of retaliatory measures is broad.

Unlike the other 5 Eyes partners, NZ has no strategic leverage on the states that it spies on. It is not big, powerful or endowed with strategic export commodities that are essential for other countries’ growth. Yet it is utterly trade dependent. Because of that, it is far more vulnerable to retaliation than its larger counterparts, especially if it turns out that NZ spies on its trade partners.  Imagine what will happen if it is revealed that NZ and the other 5 Eyes partners spy on TPPA  members in order to secure advantage and coordinate their negotiating strategies (keeping in mind that Australia, Canada and the US are all TPPA parties). What if if NZ spies on China, its biggest trade partner, at the behest of the US, with whom China has an increasingly tense strategic rivalry? What if it spies on Japan, Malaysia, Chile, Iran, India, Russia or the UAE? What if it spies on the Pacific Islands Forum and other regional organisations? What if it spies on Huawei or some other foreign corporations? Again, the possible range of retaliatory options is only surpassed by the probability that they will be applied once NZ’s espionage activities are made public.

In light of this it behooves the government to make contingency plans for the inevitable fallout/backlash that is coming our way. I say “our” rather than “their” because the response of the aggrieved parties will likely have, be it directly or as a trickle-down effect, a negative impact on most all Kiwis rather than just this government.  But so far the government has indicated that it has no contingency plans in place and in fact has adopted a wait and see approach to what Greenwald will reveal.

If so, it will be too late to mitigate the negative external impact of his revelations. And if so, that is a sign of gross incompetence or negligence on the part of the PM and his cabinet because they have known for a long time what Snowden took with him regarding NZ (since the NSA shared the results of its forensic audit of the purloined NSA material once Snowden disappeared). It therefore had plenty of time to develop a plan of action whether or not Greenwald showed up to be part of Kim Dotcom’s “Moment of Truth” event.

All of which means that, if Greenwald delivers on his promises, New Zealand is in for a very rough ride over the next few months. That, much more so than Dotcom’s quest for revenge against John Key, is why tonight’s event could well be a signal moment in NZ history.

Should NZ renounce lethal drones?

datePosted on 17:32, May 25th, 2014 by Pablo

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.

 

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