Archive for ‘Politics’ Category

The measure of military commitment is taken in blood.

datePosted on 19:05, August 4th, 2010 by Pablo

The death of Lt. Timothy O’Donnell in an ambush while on patrol in Bayiman province is a tragic but inevitable consequence of the NZDF participation in the ISAF mission in Afghanistan. His death, the first in ten years since the killing of Private Leonard Manning in an ambush by Indonesian militias in East Timor, is a sad reminder of the bottom line when soldiers are sent into conflict zones. But that is a cost worth paying when the soldiers are volunteers, understand their orders and the risks involved, deploy willingly and enjoy the support of politicians and public back home. The latter depends on how the public perceives the conflict in question, which usually reduces to perceptions of immediate or proximate threat weighed against the costs and benefits presumably involved.

The costs of the NZDF deployment to Afghanistan are now clear and are likely to mount in the months ahead as Taliban sharpen their attacks in the build-up to ISAF withdrawal as of July 2011. The question for NZ is now not so much military as it is diplomatic and political: will the NZ public continue to support the deployment if casualties continue to mount, and will the National government have the political will to continue in the fight in the event of growing public opposition and the intangible diplomatic benefits to be accrued from ongoing participation?

Although it is a bit dated, I have explained why I believe the mission is worth continuing here. I have also explained why I believe that the ISAF mission is bound to change once the July 2011 withdrawal commencement date begins. As a follow up, I have written a short piece that will appear in a mainstream media outlet tomorrow on Lt. O’Donnell’s death in the context of a Taliban resurgence and switch to a “balloon” guerrilla strategy in which the Taliban retreats from large kinetic confrontations in Halmand and Kandahar provinces and regroups in areas such as Bayiman where the ISAF presence on the ground is thinner (i.e. when they get squeezed they pop up elsewhere rather than fight a superior force at the point of massed contact).

All indications are that the security situation in Afghanistan will get worse rather than better, if it ever does. ISAF commander General David Petraeus and US Joint Chief of Staff Chairman Admiral Mike Millan have said as much. John Key has committed the NZDF to the Bayiman PRT until September 2011 and is considering extending the NZSAS deployment past its schedule end date of March 2011. But now that the costs of the mission are etched in blood, does he have the nerve, resolve and most importantly public support to keep that promise should things get worse in the months to come? Given that 2011 is an election year, will polls rather than principle drive his decision? One thing I believe will be certain. More Kiwi blood will flow in that forsaken land.

In the debates about the proposed labour law reforms there appears to be fundamental misunderstanding or ignorance by National and ACT of the purpose of unions in capitalism. The latter are seen by NACT as at best a source of inefficiency and profit loss; at worst parasitic wealth destroyers. They appear to misunderstand that capitalism left to its own devices, with no collective counter-weight provided to workers, is akin to a political regime without opposition parties. That is, it is inherently an authoritarian status quo in which owners rule and workers obey. Thus, if we hold it self-evident that democracy is a better form of regime than dictatorship precisely because it allows for the existence of a freely organised competitive political opposition that can contest power and times compete for it, then we must also recognise that capitalism needs unions in order to be representative and fair to the society at large. The trade off between democracy and capitalism is exactly that: a diminished rate of exploitation in direct proportion to the measure of voice exercised by workers in pursuit of a fair share for all.

That is why unions were organised in the first place: to bring a subordinate group vehicle of voice and redress to the economic system. Whatever their very evident flaws (Leninist organisation, iron law of oligarchy bureaucratic rationales), unions provide a democratic counter-weight to unfettered capitalist exploitation. Just as it is preferable not to have a closed, unaccountable (or at least vertically unaccountable) oligarchical elite run the affairs of state, so too is it undesirable, from a democratic perspective, to have a closed, vertically unaccountable economic elite determine the social relations of production. If one believes in democratic capitalism, one must believe in a central partnership role for unions within it.

This is true whether labour-based or capitalist-oriented parties are in power, since in capitalist societies the material welfare of all is dependent on the investment decisions of capitalists. But capitalists need workers to realise their investment, and workers need to be productive for profits to occur. There is consequently a structural bias in favour of providing the working conditions and larger social context in which profitable production can occur over the long term. For that to happen workers need to accept the system as given, which is a function of them perceiving a partnership stake in it. That means a modicum of voice and representation. Democratic capitalists consequently understand the need to exchange super-exploitation and authoritarian control of the workplace for increased working class representation in both politics and production. In turn workers (and their political representatives) accept the capitalist foundations of society and the dominant role of capitalists within it (in other words, they forego a move towards socialism). This exchange is at the heart of democratic capitalism. Although negotiating the margins of the democratic capitalist social contract can occur depending on the nature of the government in power, “touching the essential” aspects of it is not.

Authoritarian capitalism offers many short term advantages to business, but it does not guarantee long term gains. Unmitigated authoritarian exploitation, be it in the workplace, politics or both, breeds resentment. Born of a lack of consent to the dominant system, resentment can be manifest in everything from petty acts of social defiance to industrial sabotage to revolution. Short term acquiescence may be bought with material rewards, but the long-term picture remains clouded so long as workers do not buy in to the system as given and instead resent their subordinate status in it. Absent mass consent and given the inevitability of working class resentment, the resort to the “weapons of the weak” negatively impinges on profit, if for no other reason then that the costs of repression grow larger the longer authoritarian control is maintained. After all, you cannot repress the same amount of people in the same measure over time.  Since capitalists abhor uncertainty and seek stable rates of secure return, a peaceful, consent based socio-economic and political order is preferable to an imposed one. That gives economic utility to democratic capitalism.

In fact, where democratic capitalist systems work best (hegemonically, as it were), many if not most workers strive to become capitalists themselves (small businesspersons, at a minimum). They see themselves on a continuum of upward mobility based on workplace fair play and merit. Socialism is not their preferred option. The proof is in the mythos: is this not the Kiwi, Ozzie and American dream?

Here is where NACTs reforms and the demands of the employer class says much about their true orientation. They claim belief in freedom of choice and the benefits of market competition as the great levelers of social ambition. If that were true, then they would welcome workers to freely organise without legal constraint or negative repercussion because true market competition and workers freedom of choice would improve overall economic (labour) market efficiency. After all, according to their own logic, the market works best when all have equality of opportunity, and it clears best when all actors enter into the market exchange exercising their full potential as free agents involved in the mutual supply and demand of goods and services. So if workers exercising their free choice want unions, then more the better from a market perspective. Why put constraints on that freedom?

Yet in practice NACT seeks to place constraints on working class collective choice and voice so as to better exercise owner/manager prerogatives in the workplace. They are, in other words, hypocrites who do not really believe in the power of the free market or closet authoritarians out of ignorance (unlikely) or by design. Or both. No amount of political spinning can disguise that fact.

What is more, NACT does not appear to comprehend, from a cynical perspective, that allowing for unionisation, including union workplace access, while reducing limitations on the right to strike and collectively bargain across economic sectors can actually serve very usefully as an alienation device in which workers are led to believe that they are real partners in production in a system in which the fruits (surplus value) of their labour are appropriated by others (in a variant of Lenin’s “democracy as capitalism’s best possible political shell” argument). Although unfettered collective action has the potential to open the door to worker challenges to control of production, the reality is that in democratic capitalism private ownership is reified from birth to grave and most workers live with the dream of being bourgeois in culture and consumption if not employment. So whether cynically or sincerely committed to workplace democracy, enlightened capitalists understand the long-term political utility of union representation in democratic society. NACT and its business supporters appear to be anything but enlightened.

As I mentioned in my previous post on the matter (“The Blues Go Black”), the proposed reforms owe their inspiration to the Pinochet Labour Code. The question is whether NACT have the same view of unions as Pinochet and “Pepe” Pinera did, and if so, why do they make any pretense as to being democratic? Could it be that what we are seeing in NZ is the first attempts to turn the economic bases of the democratic social contract into something akin to unchecked elite imposition under manipulated electoral conditions?

Countering threats as a growth industry.

datePosted on 18:15, July 23rd, 2010 by Pablo

News that the US has a network of over one thousand agencies employing more than 800,000 people involved in counter-terrorism efforts comes as no surprise. The post 9/11 reaction to the threat of armed Islamicist extremism by the US government was as visceral as it was knee-jerk, with a blanket call put out to increase every aspect of the country’s counter-terrorism capability. From intelligence gathering to emergency response and everything in between, counter-terrorism agencies proliferated from the local to the state to the federal level, as did the number of private firms engaged in direct counter-terrorism efforts as well as support roles.

But there are problems with this expansion, and it is not just the waste of resources associated with the duplication of functions and overlapping of roles that comes with it. Nor are the problems confined to the US. Let me list a few.

Around the world concerns about terrorism has seen the expansion of government security apparatuses dedicated to fighting it. Intelligence agencies, police forces and the military of virtually all Western states, to say nothing of those in the Sunni Arab world, Africa, Asia and the Antipodes, have increased the amount of resources directed towards countering potential terrorist threats (South America is the exception to the rule because traditional inter-state rivalries and the lack of Islamicist grievances in the region have led authorities to focus attention elsewhere). In New Zealand, for example, both the Combined Threat Assessment Group (an inter-agency combine that analyses intelligence flows and threat assessments from such as the SIS, Police, NZDF, MoD, Immigration, Customs and Foreign Affairs) and the Counter Terrorism Tactical Assault Group (CTTAG, a combined military and police specialist unit trained to respond to terrorist incidents) were created after 9/11. Similar agencies now litter the state security landscape throughout the world.

Along with the proliferation of agencies comes increases in their funding and personnel, and more perniciously, the scope of their responsibilities. Again, in New Zealand this is evident in the Terrorism Suppression Act (TSA), which is modeled on similar legislation in the UK and US and which gives broad powers to the government to infringe on basic civil liberties in its efforts to detect and stop suspected terrorism-related activities on NZ soil. The same goes for the Search and Surveillance bill now before parliament. In the US the so-called Patriot Act, which is still in force, grants US security agencies broad powers of arrest and detention on the mere suspicion of terrorism-linked behaviour. The expansion in both the number and legal authority of counter-terrorism agencies has been facilitated by politicians who, in an effort to not look weak on the issue of terrorism, approve budgetary increases and laws that fuel the growth of the counter-terrorism industry. In the post 9/11 rush to promote security, only a few brave politicians have attempted to resist the trampling of civil rights that the expansion of the security apparatus inevitably entails.

Besides the obvious problems that come with the “squeezing” of civil society by the security state (since the expansion of the state’s counter-terrorism powers come at the direct expense of the right to privacy and presumption of innocence), there is another downside that needs to be considered: the construction of threats in order to justify the existence of counter-terrorism networks. What is more, this phenomena extends beyond government security agencies and into private enterprise and academia.

In order to justify their existence, security agencies have to be able to identify and counter threats. In some countries the threats are real, as is the need to thwart them. But in much of the world the threat of terrorism is no more than it was in the 1990s, 1980s or 1970s. One such place is NZ. In these countries security agencies have a bureaucratic self-interest in identifying “threats,” because if there are no new threats then the rationale for their role and resource expansion goes out the window. Thus in 2005 the NZSIS identified “home grown jihadis” as the gravest security threat to NZ. A year later it dropped all reference to local Islamic extremists and highlighted foreign espionage networks operating on NZ soil. The following years have seen it highlight foreign-based computer hacking and industrial espionage as sources of concern. Each year appears to bring with it a new threat, even as the others are quietly dropped from annual reports.

Along with state security agencies conjuring up or exaggerating threats, so has an army of private security firms, including open source intelligence providers, security guard outfits and private military corporations sprung up to take advantage of the post 9/11 climate of fear. They bandwagon with state security agencies to emphasize the dangers of terrorism and other threats so as to nurture a client base for their services. The infamous Blackwater (now known as XE) private military corporation is an example of a “one-stop” private contractor that has its own intelligence, airborne, naval and ground units ready to serve both public and private clients for handsome fees (one of their latest ventures is in anti-piracy operations).  Thousands of other such firms now dot the global security landscape, all emphasizing the dangers of  the threat environment in the pursuit of profit. Not only does this industry work neatly with state security agencies’ agendas, but it further squeezes civil society in the measure that its surveillance capabilities and quasi-police powers increase as well.

Even academia is not immune from this trend. Over the last decade “counter-terrorism” centres have sprung up in dozens of universities world-wide. They receive their funding from governments, hold conferences, and churn out reports, books, even specialised journals that are dedicated to the subject (including “Perspectives on Terrorism” and “Terrorism and Political Violence,” although my favorite journal along these lines is “Small Wars and Insurgencies”). Here too the push is on to identify threats so as to justify continued funding. Places like Nanyang Technological University in Singapore, home of the S. Rajaratnam School of International Studies, have dozens of highly paid researchers working on counter-terrorism and threat analysis projects (including one analyst at RSIS who declared that NZ faced a domestic Islamicist threat without ever having been to the country). Since funding for its facilities and personnel is directly related to its threat analyses, NTU has a vested interest in helping ensure that the perception of the global and regional threat environments is that they are variegated and “dense.” NTU is certainly not alone in pursuing the counter-terrorism dollar–this is a world-wide trend.

And of course, there are the countless terrorism “experts” that have sprung up as analysts and talking heads in the corporate media. No matter how tenuous their qualifications for discussing issues of threat posed by terrorism and irregular warfare groups, these pundits materially benefit from the exposure afforded to them by the sound-bite crowd.

Which brings up the thought for the day. Threats to international and national security do exist and terrorism is real. But pragmatic threat assessment and better use of extant security agencies and criminal law to counter terrorism have been overwhelmed by the urge to manipulate the impression of threats for individual, corporate, bureaucratic or political gain. That in turn has seen a shrinking of the civic space and private sphere in inverse proportion to the expansion of integrated (private-public) national security networks.

When money combines with a climate of fear, impressions of threat can be manipulated (if  not invented) in order to pursue profit or bureaucratic power. Threat manipulation in pursuit of corporate self-interest and the expansion of state security apparatuses poses a serious risk to democratic society. In another life long before 9/11 I participated in actual threat assessment exercises for the US government. The ethos then was to call things as they were, objectively, so as to not allow political agendas or ideological bias to divert resources away from real dangers. Now that logic has been reversed: threat mitigation is seen as a potential source of income and power, with the more threats identified the more resources will be directed towards them by political elites and a fearful public. By that logic, counter-terrorism is the mother of all cash cows, and as NZ prepares to host the Rugby World Cup, we can assume that there will be plenty of interested parties working hard to milk it regardless of the real threat environment in which the tournament is held.

The Blues go Black.

datePosted on 15:04, July 19th, 2010 by Pablo

The announcement that National will undertake labour legislation reform has revealed the dark side beneath its happy face veneer. Riding high in the polls and 14 months before having to call an election, the Key-led government has dropped its populist pretense and unveiled its anti-worker credentials with the thrust of its proposed reforms. It also violates a 2008 campaign promise not to substantially revise the Employment Relations Act (ERA). In fact, the reforms are a return to the old Employment Contracts Act (ECA), one of the most draconian, overtly authoritarian pieces of labour legislation seen in the modern liberal democratic world. Rather than address all of the proposals, to include making dismissals easier, narrowing the scope of personal grievance claims and extending the 90 day probationary period to all industries, I would like to focus here on just one: the proposal that unions must secure the permission of an employer before accessing a work site. 

Due to the asymmetric power relationship between employers and workers, collective action is the best way for the latter to secure rights and protections within the productive process. Collective action requires organisation, and the ability to organise is contingent on the ability of prospective agents to access workers in an effort to persuade them to act collectively in defense of their common interests. Access does not mean compulsory membership or even recruitment success. It just means that prospective collective agents have the ability  to approach workers at their work places in an effort to organise them collectively.

Under International Labour Organisation Convention 87 on freedoms of association, such access is defined as an absolute democratic right for both workers and agents. In fact, it is a cornerstone of most democratic labour legislation that employers not have the right to interfere with the right of workers to organise, including organisation efforts by collective agents such as unions. Thus National’s proposal that unions must secure employer consent before approaching employees on a work site, and that such consent must not be withheld “unreasonably” (with the definition of reasonable left purposefully vague), is a direct violation of one of the most cherished international labour standards.

There is a historical precedent for this move, and that is where National’s real darkness shows. The 1991 ECA entered into law by the Bolger government had exactly such provisions. In 1993 the ILO upheld a complaint that the ECA violated convention 87 on rights of association as well as convention 98 on freedom to bargain collectively. The Bolger government ignored it and it was not until 1999, after the 5th Labour government came into office, that the more egregious anti-worker sections of the ECA were eliminated in the revamped ERA.

National’s black side runs even deeper. The ECA explicitly borrowed many of its provisions directly from the 1979 Chilean Plan Laboral. The Plan Laboral was the Pinochet dictatorship’s labour code, and was championed by its then Labour Minister Jose “Pepe” Pinera, the father of the current Chilean president. Under the pretense of promoting “labour market flexibilisation,” the Plan Laboral was an outright assault on the Chilean union movement, using both structural as well as politically-focused clauses to atomise the Chilean working class and forever break union influence on economic decision-making. To a large extent, and even with subsequent reforms by successive post-Pinochet democratic governments, it largely succeeded in doing so.

Pepe Pinera, somewhat unsurprisingly, was a friend of Roger Douglas and made regular Business Round Table visits to NZ in the 1980s and 1990s before his death. Ruth Richardson, the main instigator behind the ECA, was also an admirer of Pinera. These two individuals, with their direct and immediate past dictatorial connections and coalition relationship with National, are believed to be the prime movers behind this attempt to return to the ECA as the framework in which the social relations of production are determined. In other words, National is proposing changes to the labour relations system that have their origins in the Pinochet dictatorship, and which were suggested by people with direct links to that dictatorship. Beyond the violations of ILO convention 87, that alone should give reason for concern.

Hence, while some of the other proposed reforms can be the topic of honest debate keeping in mind where the balance between efficiency and fairness in production should be located, the attempt to curtail union access to workplaces is an overt assault on working class collective rights. This proposed clause is not about getting unions to ring employers up in order to make an appointment to see employees. This is about shutting them out.

It remains to be seen if this time around the CTU and other mainstream unions will offer more than token resistance to these proposals (as was the case when the 90 day probation period was introduced). It also remains to be seen if the NZ working classes will do anything other than bow meekly to the powers that be. But if ever there was a moment to rise up against the resurgent union-busting, anti-worker tide, that time has come. Remember: the reforms embodied in the ERA where at best minor adjustments meant to “humanise” the ECA. But the thrust of NZ labour law under the ERA was by no means a bold step towards worker’s control of production, and in fact retained much of the pro-business biases of its predecessor. Thus the current labour reform proposals are very much about putting the boot into the working class, and the union movement in particular.

It may take defection from mainstream, Labour-affiliated union ranks to more independent and militant unions for any effective resistance to happen, but whatever the case, if the worker’s movement stands silent on this one, then further rollbacks of worker’s rights can be expected the longer National is in power. For workers, those will be dark days indeed.

Conservative dementia in the US

datePosted on 20:08, July 6th, 2010 by Pablo

One has to hand it to the US conservative movement. They have no shame, or at least plenty of chutzpah.

They love to bark about the evils of Democrats while having no regard for the consistency of their own positions. Take the issue of corporate responsibility. Conservatives railed against the bail-outs of the Wall Street banks and Detroit automakers, arguing against the “they are to big to let fail” logic of the W. Bush and Obama administrations when these came to the financial rescue of the beleaguered  giants. “Let ’em fail” they screeched, since “the market will sort ’em out.” Yet, when Toyota lied about the causes of sudden uncontrolled acceleration in its cars and delayed recalls while “investigating” the incidents (which resulted in over a dozen deaths and more than a hundred injuries), these same groups demanded that the US government step in to investigate and charge those responsible for everything from criminal negligence to consumer fraud. Likewise, the US right wing is now raving that the US federal government has done too little too late to respond to the BP oil spill even though–surprise surprise–the US federal government does not have the deep water capping technology available to the private oil industry, had previously deregulated that industry at its request in order to stimulate production (and profits) and was initially relying on that industry to give honest estimates of the disaster and rectify the situation based upon its own expertise and record in controlling spills of that nature. Some conservatives even demanded that the US accept offers of foreign assistance in controlling the spill, and scolded the Obama administration when it declined to do so. Fancy that, conservatives calling for foreign aid at a time of domestic crisis. Thus, when it comes to issues of corporate responsibility, US conservatives cannot make up their minds about the why, how and when of government intervention.

As far as taxation is concerned, the likes of the Tea party movement are opposed to current federal taxation rates and demand cuts across the board without considering that it is taxes that pay, as just one example, for the US military’s trillion dollar budgets and prosecution of a seemingly endless procession of wars abroad in defense of the “freedom” they so much rhetorically cherish. They appear ignorant of the fact that without taxation the US would not be able to maintain its preeminent global position, and that the current federal budget deficits originated in the W. Bush administration’s deficit spending to fuel the wars while lowering the taxation rates for corporations and high income individuals. In fact, in this regard W. Bush was emulating the champion of all American conservatives, Ronald Reagan, who massively increased defense spending and the overall size of the federal budget while lowering taxes for the upper third of the population. How is this “fiscally responsible?”

Finally, although all conservatives are self-styled “patriots” who literally wear their flags on their sleeves, bumpers and lapels, some are of the “America first” persuasion whereas others are of the “US superpower” kind. The former prefer that the US concentrate on its own affairs and limit its foreign entanglements, while the latter wants to see the US as the major player on the world stage. One view is isolationist; the other is imperialist. The two views are irreconcilable.

In effect, American conservatives are not the limited government champions they claim to be, nor are they consistent in their linkage of national necessities with taxation. They are divided on their views of the US role in the world. Instead they are a collection of blustering fools, economic retrogrades and illiterates, corporate toadies, religious zealots, assorted bigots, xenophobes and militarists mixed in with a minority of true libertarians and honest believers in the primacy of individual over collective rights and responsibilities. That means that even if they make major gains in the November 2010 elections, the centrifugal forces within the US conservative movement, as well as the lack of a coherent core rationale underpinning it, will prove deleterious to their chances for successful overhaul of the US political system. In fact, such a victory could well make the crisis of US politics even worse.

A Diplomatic Dilemma: Kowtow or Confront?

datePosted on 17:53, June 18th, 2010 by Pablo

The manhandling of Green Party leader Russell Norman by Chinese security guards as they escorted a high-level delegation into Parliament raises some thorny questions for the government. Norman was protesting in favour of a free Tibet when his flag was taken from him and he was shoved to the ground. Technically speaking, he was exercising his democratic right to free speech and protest on parliament grounds, so the minute the guards laid hands on him they were guilty of assault. Of course, it remains to be seen if Norman did anything to provoke the guards reaction, such as by rushing at the visiting officials or uttering threats (neither of which appears at this juncture to have happened). Some commentators believe that he deserved what he got because he was being provocative merely by protesting , or because the whole episode was a PR stunt anyway. Even so, if the assault on him was provoked by his holding the flag or shouting “free Tibet”  rather than him posing an immediate physical threat to the delegation, then the guards were in fact violating his rights as well as NZ criminal law and parliamentary protocol. So what is the government to do?

China is now the second largest trading partner of NZ, which has secured the first bilateral free trade agreement between China and a Western country. The National government has worked hard to deepen ties with the PRC, to the point that it is working on the details of a military exchange program with the Asian giant and has not opposed the sale of strategic assets to Chinese consortia. In the past the 5th Labour government has coordinated with visiting Chinese delegations to prevent protesters from getting close to the visitors. There is, in other words, a history of NZ officials working to appease Chinese sensitivities about protest and dissent within a larger context of improving relations between the two countries.

But there has never been a direct confrontation between members of a Chinese entourage and NZ citizens, much less a shoving match between Chinese nationals and an MP inside of parliament itself (as far as I know previous protests by Ron Donald never escalated this far). So a precedent is about to be set. If the NZ Police charge the security guards with assault, or if the government declares them personae non grata and expels them, then NZ runs the risk of having these strengthening ties disrupted by a Chinese diplomatic backlash. Even of short lived or partial, any retaliatory curtailment of trade and investment could end up costing NZ millions of dollars in lost revenue (and the jobs that go with it). But if the Police or government do nothing, then they send the signal that NZ’s commitment to civil rights is secondary to its commitment to trade. Some might see that as kowtowing to an authoritarian one party state in the pursuit of profit. So far the Police have said that they will investigate Norman’s complaint about the incident, but  that does not mean it will result in charges being laid.

One line of argument could be that NZ has to look at the broader and longer-term picture and not jeopardise a relationship that is crucial to NZ’s future prosperity over a trivial incident. A counter-argument is that NZ has more to lose if it abandons its democratic principles in favour of the ethereal promise of cash down the road. One rationale privileges principle over practicality; the other privileges the reverse.

So, what is to be done? What should be Labour and ACT’s responses be (as the majority opposition party and supposed champion of individual rights, respectively)? Should pragmatism triumph over principle, or should principle outweigh economic and diplomatic considerations? Is there a compromise solution in which face is saved all around? Will the Police go through the motions of an investigation but do nothing, and if so, what will National do by way of official follow up?

Less one think that this conundrum could only occur because of the nature of the Chinese, consider this scenario:

A protester attempts to approach US Vice President Biden and/or Secretary of State Clinton at the Beehive entrance in order to deliver a petition demanding closure of Camp X Ray at Guantanamo, or better yet, a summons to the International Court of Justice for complicity in US “war crimes” in Iraq and Afghanistan. What do you think the Secret Service response would be, and if the Secret Service agents surrounding the US dignitaries were to react in a physical manner, would the NZ Police or government press charges against them?

Such are the quandaries of being an elf amongst giants.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

A chronicle of deaths foretold.

datePosted on 04:02, May 11th, 2010 by Pablo

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

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

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

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

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

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

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

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

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

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

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

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

Thoughts about Key’s Afghan PR Exercise.

datePosted on 01:38, May 6th, 2010 by Pablo

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

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

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

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

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

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

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

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

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

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

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

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

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

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

They have to want it as much as you do.*

datePosted on 06:51, April 27th, 2010 by Pablo

I spoke with an old Pentagon friend today (a person with whom I shared strategic planning duties in a specific area of concern, and who went on to far greater things than me), relating to him my early observations about Greece in crisis. I mentioned that the Greeks, who have a public sector that dwarfs the private sector, in which the public sector average wage is far above that of the private sector, have a huge sense of collective entitlement and natural rights. For example, university students (as public entitles) are currently demonstrating daily against proposed cuts in their free lunch and bus pass benefits, but not at the university. Instead, they disrupt downtown traffic. Tomorrow the seafarers, bus drivers and railway workers go on a 12 hour strike to protest wage freezes or labour market infringement  (the train and bus workers are public servants facing wage freezes and the seafarers are striking to protest non-EU ships being allowed berthing rights in Greek ports. Their combined walkout will paralyze the transportation network for 8 hours ). 

But media coverage of the issues is somewhat odd. Rather than look inward, the popular press is full of anti-German rants because the Germans will determine the conditions of the Greek debt bailout (which only delays the inevitable default), and the conditions imposed by the Germans (as majority holders of Greek debt) are considered to be the reasons why Greek workers will not get their entitled, perfunctory raises.  All the while  life goes on–the cafes and supermarkets are full, people crowd the trains, there are few demonstrations outside downtown. People do not appear to connect the impending default to their lifestyle.

Usually wages are tied to productivity, which means that if the public service is well paid it is also efficient (such as in Singapore). But in Greece it is not. From what I have observed and what my Greek interlocutors have told me, nothing gets done or it is waste of time to demand action. For example, on Saturday an illegal gypsy market spung up on the street outside our apartment building. It closed the street to vehicular traffic and vendors camped out on the apartment footsteps. The neighbours shut the front entrance doorway, which is usually propped open, out of fear of robbery. I asked my landlord if that was commonplace and she said that yes, although illegal the gyspy market had run for years because neighbours had zero success in complaining and bribes may have been paid for the authorities to look the other way (which indeed they did–I saw not a single cop during the entire afternoon the market was running).  In other words, Greek public service is as much a hindrance as a help to civil society, hence the proliferation of grey and black market activity. The curious thing is that this situation is tolerated by both of the dominant Greek parties, respectively left and right centre as they may be, because public sector employment and benefits is a common source of patronage and clientilism. Neither one wants to upset that apple cart (even if the latter is foreign debt-bought and effectively owned). 

Mind you, not that all Greek public services stink. When compared to the Auckland raillway system, for example, the Athenian Metro is stellar. There are few delays on the six inter city lines, complete integration with buses and suburban rail lines, and close integration with ferry and airport schedules. The only visible problem, from my non-expert viewpoint, is that there appears to be way too many people (or too little, depending on the station) doing nothing in pursuit of this goal. Then again, I tried the Henderson-Auckland (before and after Britomart) route for years, before and after it was privatised,  and the public-controlled Athens Metro system has it beat by a country mile.

Not that the Greek private sector is a beacon of innovation and entrepeneurship. To the contrary, it is mostly low skilled small holdings with no growth or technological ambition (think butchers, cosmetic vendors and locksmiths), and the political-economic elite (they are the same, crossing familial ties in many instances) in this rigid two party system have no interest in promoting the sort of capitalist ambition that would erode their joint lock on power. Cuba is similar in this regard, because in both cases oligarchic control supplants popular innovation as the motor of progress and majority consent is bought with public sector employment (not that I am drawing a direct line between the two regimes as a whole).

Which is to say, Greek economic backwardness is cultural, contrived and perpetuated by the Greek status quo. The elite see no need to change because deficit spending is a double edged sword, as many US banks found out to their dismay. Deficit-laden countries intimately locked into the European financial system such as Greece will not be allowed to collapse  becuase if they do the financial run is on given that Spain, Portugal and Ireland are all in the same predicament–too much debt, too little ability to pay within IMF/ECB guidlelines.  Hence, Greece may default, but it will not be allowed to financially collapse if for no other reasons than that the repercussions would be catastrophic on the European banking system itself.

Which is where my fomer Pentagon friend comes in. I noted to him that the problem with EU expansion is that the leading EU economies, France and Germany, viewed EU monetary expansion into Southern and Eastern Europe as a development project in which the lagging peripheral economies would be modernised by virtue of their connection with the European core (first via labour-intensive investment, then by value added industrial growth). The Euro giants emulated the US when it engaged Latin America in the 1960s and 1970s under the rubric of modernisation theory: just expose the backward masses to a little capitalist entrepenurialism and all will eventually be right.

Err…wrong.  As my friend noted, the locals have to want the change as much as we/you (external agents) do. And that is a cultural issue more than anything else. 

Developmentalist views such as that of the EU and US ignore the cultural component of investment climates. National preferences are different, cultural mores vary, and collective notions of rights and entitlements are not transferable across borders. The Germans and French may have thought that lending money to Greece to fund the Olympics would promote its modernisation, but like the Yanks in Latin America, they failed to understand that Greek culture–what it means to be Greek–supercedes any IMF/European Central Bank prescriptions. Hosting the Olympics was temporary; to be Greek is forever, and that is not reducible to a current deficit repayment schedule. To the contrary. It is reducible to notions of rights and entitlements crafted over milleniua and mytholoigised as such. That bottom line is not within an IMF  or European Central Bank purview.

Which is why my friend Ray’s point is well taken: an external actor can only help as much as the locals want to help themselves. There is no point in offering assistance and prescriptions if the locals do not see the need to change. Absent a local consensus on the need for change (which can be influenced by externally driven media manipulation but which ultimately has to resonate in the hearts  of the citiznery) better then  for external actors to cut bait than to engage in futile hope that the local conditions will change.

In fact, the opposite may be true: the less a country is propped up by external actors and the more it is forced to look inside itself for solutions, then the more it may eventually address the root causes of its backwardness, decline or stagnation (New Zealand could well be a case in point). In any event, only after internal failure is acknowledged that external assistance will make a difference in Greece or elsewhere, and that difference is not material but attitudinal.

 According to my buddy, that fact is as true for Greece as it is for Somalia, Irag and Afghanistan, and in the latter instances, the stakes are arguably much greater. I disagree with his summary assessment as it applies to Afghanistan (as I believe that there is more at stake than local self-realisation), but cannot help but recognise the truth in his words. At the end of the day in this age, no matter the degree of previous exploitation and subserviance, the root problem of backwardness lies within. Or to put it in my friend’s terms, “if the locals do not want to do it, it aint gonna happen.”

There is truth in that view and no amount of good intentioned external help will resolve the fundamental issue.

*Update: For a jaded by humorous view of Greek politics check this out.

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