Category Archives: Politics

In Hellas, out with the new and in with the old.

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The outcome of the latest Greek election is not surprising. When faced with uncertainty and dire predictions of collective and individual doom in the event that radical change occurs, voters often tend to go with the status quo or what is already in place. Confronted with the “valley of transition” to an unknown future, voters rationally calculate that their interests are best served by staying with what is known rather than leap into the unknown. Add to that the orchestrated litany of woes predicted by bankers, capitalist-oriented politicians, and lender nations, who pretty much predicted the end of the world as we know it if Greece were to default on its debts and withdraw from the Eurozone currency market, and it is easy to see why a plurality of Greeks decided to stay with the hand that they have been dealt with.

The trouble is that hand, in the form of a New Democracy/PASOK coalition (the so-called “bailout coalition”) is exactly the hand that got Greece into the debt crisis in the first place. It was first New Democracy, then PASOK governments that set new records of corruption, clientalism, patronage and nepotism while running up the public debt on state-centered labor absorption and entitlement projects that did nothing for productivity or the revitalization of the Greek private sector (which remains fragmented and dominated by oligarchic interests in the few globally viable Greek industries such as shipping). It is to this pro-Euro political cabal that the responsibility for “rescuing” Greece is entrusted. That is not going to happen.

True, the terms of the bailout will be relaxed even further now that a pro-Euro government can be formed. That much is clear given that Andrea Merkel has hinted that the repayment terms can be “softened.” The hard truth is that repayment can be softened because what is being repaid in Greece is the compound interest on the foreign loans. The logic is that of the credit card: the issuer of the card would prefer for users to not pay off their total debt on a monthly basis and instead accumulate interest-accruing cumulative debt while paying off less than the total owed. If the user reachers a credit limit with interest debt accruing, the limit is raised. If the user defaults on the debt after a series of credit limit raises, measures are taken to seize assets of worth comparable to the outstanding amount.

States are different than individual credit card users because as sovereign entities they can avoid asset seizure on home soil even while bankrupt. As Argentina proved in 2000, they can default and renegotiate the terms of debt repayment according to local conditions (after Argentina defaulted on its foreign debts it was eventually able to negotiate a repayment to creditors of US 36 cents on every dollar owed. The creditors took the deal, then began lending again, albeit more cautiously. The devalued Argentine peso sparked an export boom of agricultural commodities that led to post-default growth rates unseen for 50 years). The short-term impact of default can be painful (witness the run on Greek banks as people try to cash in and export Euros), but measures can be taken to curtail capital flight and to mitigate the deleterious effects of moving to a devalued currency (the Argentines did this by placing stringent limits on currency transfers abroad in the first months after they de-coupled the Argentine peso from the US dollar while at the same time issuing interest-bearing government bonds to dollar holders in the amount valid at the exchange rate of the day before the de-coupling). Greece has not adopted any of these measures as of yet, but that is because a pro-Euro caretaker government, as well as the PASOK government that preceded it, wanted to heighten the sense of doom should an anti-Euro coalition look to be winning majority support.

That scenario emerged in the form of Syriza. Although it is formally known as the Coalition of the Radical Left it is anything but “radical” (no matter how many times the corporate media tries to emphasize that point). Instead, it is a coalition of Socialists, Social Democrats, Greens, Trotskyites, Maoists and independents not associated with the Greek Communist Party (KKE). It has an agenda that includes a possible default, and will now be the largest opposition bloc in the Greek parliament. Contrary to the perception that it came out of nowhere in this year’s elections, Syriza has been steadily building a popular voting base since 2004, increasing its electoral percentage significantly in 2007, 2009 and May 2012. Although it has had splits and defections (which are endemic in Greek politics, particularly on the Left), Syriza was the second largest vote-getter in the May 2012 elections and its margin of loss to New Democracy in the second-round elections held last weekend is less than it was in May. The bailout coalition may have a narrow majority, but Syriza and other Left minority parties will prove to be a formidable parliamentary obstacle to the implementation of  its pro-Euro agenda.

That is why the new Greek “bailout” government will not be successful even if it renegotiates the terms of the bailout along more favorable lines than in previous iterations. It will be forced to deal with the combined pressures of Syriza opposition in parliament and the angry–and I reckon increasingly violent–opposition of the non-parliamentary Left in the street. Greece has a long tradition of student and union militancy and urban guerrilla warfare. Even during the best of times militant groups have used irregular violence to make their points about Greek capitalism and its ties to Western imperialism. They have burned and they have killed (including a CIA station chief, a British embassy official and various Greek security officers) during the decades after the Colonel’s dictatorship fell in 1973. These militant strands have not gone away and instead have been reinforced as the debt crisis drags on and the impact of austerity measures take their toll on the average (and increasingly unemployed) wage-earner. With unemployment at 20 percent and youth unemployment at 50 percent, the recruitment pool for Greek militants has grown exponentially.

Some of this has been siphoned off my neo-fascist parties like Golden Dawn. But the bulk of popular rage has been channeled by the Left, divided into the institutional vehicles of Syriza and the KKE (and various off-shoots), and the direct action, non-institutionalized vehicles comprised by the likes of Revolutionary Sect (who favor political assassinations) or Conspiracy of Fire Nuclei (who appropriately enough favor arson), that follow a long line of militant groups with a penchant for violence such as the N-17 and Revolutionary Struggle (and may in fact include former members of the latter), to say nothing of various anarchist cells.

These militant groups are not going stay quiet. Instead, I foresee a rising and relentless tide of irregular violence coupled with acts of passive resistance and civil disobedience so long as the political elite continues to play by the Euro rules of the  game. Every Greek knows that the solution to the crisis is political rather than economic because the bankers have made more than enough profit on their loans and it is now time for them to draw down or write off the remaining interest owed. A softened bailout package only goes halfway towards easing the collective burden of debt, and the continued imposition of fiscal austerity deepens the stresses on Greek society (urban crime has ramped up significantly this year, and it already was pretty bad when I lived in Athens in 2010). Instead of continuing to cater to banks, the political decision palatable to most (non-elite) Greeks is not a softened bailout package, now into its fourth iteration. It is a complete re-structuring, with or without default, of the economic apparatus so that national rather than foreign interests prevail on matters of employment, income and production. This may require a retrenchment and drop in standards of living over the short-term, but it at least gives Greeks a voice in the economic decisions that heretofore and presently are made by Euro-focused elites more attuned to the preferences and interests of European finance capital than they are to those of their own people.

If there is a domino effect in other countries in the event that Greece eventually (I would say inevitably) defaults, then so be it simply because that is the risk that bankers and their host governments assumed when they lent to PASOK and New Democracy governments in the past. Perhaps it is time for bankers to pay the piper as well. After all, although their profit margins may fall as a result of the Greek default, they have already insured against the eventuality (the write-off of Greek debt by large financial institutions in the US, UK and Europe is the story that never gets mentioned by the corporate media). Moreover, and most importantly, the banks can accept the default and take their losses on projected interest as a means of keeping Greece in the Eurozone market, thereby avoiding the contagion effect so widely predicted at the moment. Default does not have to mean leaving the Euro currency market. Greece can default and stay in the Eurozone so long as the banks accept that it is in their long-term interest to shoulder the diminished profits (not real losses) that a default will bring.

Again, the economic decisions about Greece had already been made by the European banks, and they are now simply waiting, while claiming gloom and doom, for the political decision to terminate their interest-based revenue streams. The PASOK/New Democracy bailout coalition only delays that political inevitability, and Syriza and the militant Left will ensure that the next bailout is just another stopgap on the road to default and regeneration along more sustainable lines.

Whatever happens, it looks to be another long hot summer in the Peloponnese. Expect a lot of wildfires.

The Crown Gets Its Pound of Flesh.

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I am surprised by the jail sentences handed down to Tame Iti and Te Rangikaiwhiria Kemara in the Urewera 4 case. I had expected substantial fines and at most community service sentences for all of the defendants. The same day the Urewera 4 were sentenced a doctor was fined $1000 for firing a crossbow at a tree 3 meters from a tent of sleeping children at a DOC camp site, so it seemed reasonable to me that people who discharged firearms in the vicinity of no one other than themselves would receive sentences in line with the good doctor’s. But, as it turns out, the Judge in the Urewera 4 case had a different line of reasoning, and it is worrisome.

Even though the Urewera 4 were not found guilty on criminal conspiracy charges, the judge who sentenced them, Rodney Hansen, repeatedly referred to them as if they had been. He spoke of an armed militia with leaders and followers, and he mentioned molotov cocktails–the possession and use of which they were not convicted of–as proof of something sinister going on the outskirts of Ruatoki. But the sentences were supposed to be for violations of the Firearms Act alone–six in the case of Iti, Kemara and Emily Bailey and five in the case of Urs Singer. So why did the judge bring in a line of reasoning at sentencing that is more appropriate to a guilty verdict of criminal conspiracy, and why the relatively harsh penalties for violations that, quite frankly, are fairly routine in some sectors of New Zealand society? In fact, the sentences do not distinguish between the types of firearms used by different individuals, so that those who handled a sawn off shotgun were treated the same as those who handled a bolt action .22. Bringing up the subject of molotovs, militias, purported bombing (but not bus-flinging) plans at sentences for Firearms Act violations is irrelevant and prejudicial.

Lew and I have written previously at some length about the discrepancy between this prosecution and the seemingly blind eye the Police and Courts cast on very similar bush antics by right-wing extremists who make no secret of their hatred for assorted ethnic and religious groups and who have proven histories of violence against those they hate. I shall therefore not repeat what we have said. But what I can say is that these sentences confirm to me that this Crown prosecution was about punishment and deterrence, not justice. One way or another the Crown was going to extract its pound of flesh from at least some of the original defendants, a process that not only involved lengthy delays in providing the defendants with their day in court (by over four years) and the admission of illegally obtained evidence,  but which also is designed to serve as a warning to others who might be of similar ideological persuasion and direct action mindset. As I have said before, the process was the punishment for the original 18, and these sentences are the final act in that process. It has not been fair, it has not been just, and other than assuage the primordial fears of conservative Pakeha such as Louis Crimp, the National Front and the closet Klansmen that inhabit the right-wing blogosphere, it does nothing to advance respect for the law and the concept of equal treatment for all.

Given that the sentences for Iti and Kemara appear to be disproportionate to the crimes committed, and that the judge’s reasoning was at least in part based upon tangentials that should not have been admitted at the sentencing phase, I would hope that they will be appealed and eventually reversed. Otherwise the conclusion to Operation 8 looks like another case of Pakeha utu on people who dare speak truth to power in unconventional, theatrical and ultimately silly ways.

 

They Never Learn.

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There is an old rule in politics that states that it is not the original sin that gets politicians in trouble. It is the cover-up or lying about it that does them in. The examples that prove the rule are too numerous to mention and span the globe. This week we have another classic case in point: Shane Jones and his explanation as to why, as Associate Minister of Immigration (the Minister of Immigration at the time, David Cunliffe, had earlier refused to revoke Liu/Yan’s residence visa and for some reason unknown to me was not involved in the granting of citizenship), he ignored expert legal advice and granted a Chinese fraudster expedited citizenship.

According to Jones he did so on humanitarian grounds because he was told by an unnamed Internal Affairs official that the applicant–he of at least three different names and an Interpol warrant out for his arrest–would be executed and his organs harvested if he were sent back to China. Forgive me if I cough. That is up there with Annette King’s claims that no one in the Labour government knew about Operation 8 until the weekend before it began.

Others have already torn Mr. Jone’s supposed rationale to shreds. Beyond the fact that not even the Chinese execute people for common fraud, even if they are members of Falun Gong (a claim supposedly made by but never proven by Mr. Liu/Yan), a legitimate fear of a politically-motivated death sentence would result in an asylum request, not a citizenship application based  upon a business visa. Nor would Mr. Liu/Yan speak of traveling back to China with a delegation of Kiwis in order to explore business opportunities in the PRC (as it is claimed he did in his conversations with immigration officials now testifying at his trial on false declaration charges). But according to Shane Jones, not only was he facing certain death but also certain organ harvesting (which raises the question as to how the unnamed Internal Affairs official could know this in advance given that the Chinese do not harvest organs from all executed prisoners because the health of the condemned varies). Put bluntly, Mr. Jones is simply not credible, and unless that unnamed official comes forward to take responsibility for the bogus claims (which Mr. Jones could have ignored), his justification simply does not wash. Add in the fact that Mr. Liu/Yan had donated considerable sums of money to Labour coffers in the lead-in to his citizenship application, and the smell of something fishy permeates the affair.

What is amazing is that when confronted with the evidence presented in court, David Shearer continued to back Mr. Jones and even allowed him to go public with is ridiculous justification. That violates a second rule of politics, which is that when smoke begins to surround a politician on ethical issues his or her party needs to move swiftly to prevent a full-fledged fire from erupting by distancing the tainted one from the party as a whole. By not doing so immediately and only leaving open the possibility of standing Jones down if an investigation proves him guilty of wrong-doing in the Liu/Yan affair, Mr. Shearer has failed the basic test of leadership that involves saving the party from further uncomfortable scrutiny on the issue of campaign financing and political donations.

Once again, let us remember the iron law of oligarchy that governs all political parties: the first duty of the party is to preserve itself. Individual political fortunes come second. Legalities aside, it is the appearance of unethical behavior on the part of Mr. Jones that is at play here.

What is even more amazing is that this comes on the heels of the John Banks-Kin Dotcom scandal and John Key’s equally egregious mistake in not removing Banks from his ministerial post while the Police investigated whether Banks violated political finance laws in his dealing with Mr. Dotcom. Regardless of whether the press played this sequence of events on purpose, the scenario unfolded as follows: National was on the ropes in the weeks leading up to a dismal budget announcement, beleaguered by policy and personal conflicts and dogged by an increasingly assertive mainstream press. Rather than strike a contrast in approach that would give it the moral high ground that would allow it to score major political points against its weakened rival, Labour’s response to revelations of the dubious ethics of one of its senior members in a past government–dubious ethics that are being aired in court for crikey’s sake–is to bluster and blow more smoke on the matter. Do they never learn?

Just as Mr. Key should have removed Mr. Banks from his ministerial position as soon as his denials and lies about his relationship with Mr. Dotcom were exposed, so Mr. Shearer should have moved quickly to demote Mr. Jones until such a time as an independent investigation exonerated him. Given the passing of a few news cycles and the issue would have faded into the political “bygones be bygones” category. By not doing so Mr. Shearer has allowed the Jones-Liu/Yan relationship to become a distraction away from National’s peccadillos and policy failures. He has, in fact, thrown National a life line in the days before the budget announcement and the decision to demote Banks (who could stay in government but not be a minister pending the resolution of the Police investigation), and I would imagine that the National caucus are high-fiving and back-slapping each other in delight.

Of course there are political calculations in all of this. By-elections are costly, list candidate replacements are unproven or unreliable, internal Party factional disputes run the risk of being aggravated or exposed.  National is clearly waiting for the Budget to be announced before moving on Banks. Labour does not want to lose a senior figure who “ticks the boxes” of important internal constituencies. And yes, there is a difference between illegal and unethical activity.

But in putting these calculations ahead of ethical considerations given the appearance of impropriety, both parties have once again shown their contempt for the NZ public. And on this score, Labour’s contempt is much worse. After all, Mr. Banks was just a greasy-palmed private citizen seeking to be mayor when he approached Mr. Dotcom for support. Mr. Jones, on the other hand, was a Minister of State who apparently used his office to bestow special considerations on an individual in exchange for, uh, party “favors.”  Both actions were slimy, but it is the official nature of Mr. Jones’s intercession that makes his behavior worse. Which is why he should have been stood down straight away, because rightly or wrongly, it is the attempt to downplay or cover up past impropriety, rather than the potentially unethical or illegal behavior itself, that will cling to the Labour Party long after Mr. Liu/Yan’s case is adjudicated.

ACT and National Front to announce merger.

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That is about all I can figure after reading this about Louis Crimp, Act’s largest individual donor in the 2011 election. The line about Invercargill is priceless but there are several other gems as well. Mr. Crimp appears to be getting PR advice from Kyle Chapman or Jim Beam, so why keep up the pretense any more and not just announce the merger of the two white rights movements?  Better yet, once John Banks gets the inevitable boot from parliament, perhaps the AKKKT Party can dip into some of that NF talent pool for a replacement.

AKKKT–a political cough in the larger scheme of things, but a full throated sputum of the NZ Right.

Whining John.

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Late last year a friend of mine who works in the media said to me that the press had turned on John Key over the Teapot Tape affair. Key’s attempt to have the photographer prosecuted, following on his defamatory and/or contemptuous treatment of individual members of the press corps, was seen as the last straw. My friend noted that the press had generally been kind to Mr. Key during his first term and had avoided digging into a veritable trove of scandal and mischief simply because Mr. Key was riding high in the polls and they did not want to get off-side of a popular PM. That, my friend said, changed after the election, and the press would take a more critical stance with regard to Mr. Key and his government.

To my mind that was welcome news, because it seemed to me that Mr. Key had been treated with kid gloves during his first term and I felt that he needed to be pushed a bit on matters of National policy as well the behavior of some of his party entourage.

In the first quarter of 2012 a number of questions have been raised to Mr. Key that appear to support my friend’s prediction. None of these questions are particularly damaging by themselves, but a pattern has emerged in Mr. Key’s responses. Slowly but surely, as each new mini-scandal or crisis was revealed, Mr. Key began to drop his smile and wave optimism and replaced it with a surly, if not seething disdain for his questioners. Although he keeps his nice persona sharp for staged interviews on TV and radio, his guard drops when doing the impromptu stand-up Q&A with the press gallery. This was very evident when he was asked on one such occasion about the No Asset Sales hikoi, where he clearly struggled to reign in his contempt before saying that he did not concern himself with the opinion of 1000 people.

Now it appears he has had enough with the press in general and the NZH (and to a lesser extent the SST) in particular. He complained  to a rightwing talkback microphone jockey that the press was aggressive and sensationalistic and singled out the NZH as scandal-mongering in its treatment of him and his government in order to raise flagging sales of newsprint.

I do  not have any particular affection for the NZH, SST or the NZ MSM in general–in fact, just yesterday the TVNZ evening news borrowed without attribution a phrase I had used in a discussion about drones with Chris Laidlaw the day before(a phrase I did not coin or copyright but which I nevertheless introduced to the NZ discussion of the subject, which just happened to be the subject of the news item in the TVNZ One broadcast). Since such behavior is increasingly the norm in the NZ MSM, the standard of NZ journalistic training and ethics is, in my opinion, in the main less than optimal (needless to say there are some exceptions to the rule). But I find it ludicrous that Mr. Key is upset about the “aggressive” and “antagonistic” nature of the press approach towards him as of late. Shoot, he got the press equivalent of a free pass for the first three years in spite of often equivocal, deceptive or disingenuous answers to anything other than patsy questions. Why should he get upset when the questions begin to develop a harder edge? Does he not think such questioning comes with the job? Does he think that he is entitled to be treated differently than other politicians?

Of course, all politicians complain about their treatment in the media and past NZ prime ministers have not been above attacking the messenger or interrogator. But it seems to me that Mr. Key is being very rich when he complains about his recent treatment in the press. It may not be the solicitous if not supplicant posture of the first term, but the press approach to Mr. Key is also not anywhere close to the hostile negativity and contrariness of press corps in a wide range of democracies (I think of the partisan jousting that goes on in places like Argentina, the Philippines, the US, Spain, Taiwan and Italy, where the relationship between sections of the press corps and government executives is often very strained, if not toxic).

Thus I have come to the conclusion, following on previous posts about Mr. Key’s demeanor and attitude, that he is a pampered whiner with a royal’s sense of entitlement. He simply does not see himself as having to be accountable to a critical press, and as a result complains to the lapdog press that he is being treated unfairly. Not only is his accusation untrue. It is also politically stupid because it now has the media dissecting his complaint in public. If he thought he was going to win sympathy from anything other than his diehard base, he needs to think again.

Whatever calculus he may or may not be employing, I have one thing to say to him: harden up and do your friggin’ job, which includes fronting up to hard questions from time to time. After all, you do not get the big bucks just to smile and wave.

“What a great day for humanity” would probably have done the trick

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Today the President of the United States of America came out (if that’s the right term) in support of gay marriage. Hours later, The leader of the New Zealand Labour party did likewise. The responses they got could hardly have been more different. Obama’s statement was greeted with a worldwide ripple of excitement; Shearer’s with a localised wave of criticism. Aside from the obvious difference in scale, we can make some sense of the difference in valence by looking at two main factors: the content of their respective messages in political context; and the media and moment in which they were made.

Substance and political context

Allowing for the differences in political context, Obama’s and Shearer’s statements were reasonably similar. Both expressed support for gay marriage in principle, with reservations about implementation. In Obama’s case, the reservations were constitutional. The President can’t unilaterally pass an act permitting gay marriage; it has to go through two federal houses and most aspects of marriage are still, ultimately, determined by the states. Obama’s statement was symbolic and aspirational. First of all, it was a means of defining who he is, politically — a rebuttal of suggestions that he is timid or not liberal enough, and a means of illustrating a sharp distinction between his administration and the caricatured culture-war conservatism of his Republican opponents. It was also an opportunity to reinvigorate the American political left. David Frum said it well:

The statement changes everything because it galvanizes flagging liberal enthusiasm for this president—while subtly corroding even further the Republican hold on the next generation of voters.

(You should read Frum’s whole piece, it’s short and articulates clearly why this was a strategic coup.)

Shearer’s statement was, if anything, less equivocal than Obama’s; he merely said that he “would like to see the detail of any legislation before giving formal support”. In purely rational terms, that’s totally reasonable; nobody signs a blank political cheque. Much of the criticism has centred on the assumption that any such law would be introduced by Labour, so Shearer would not only get to see it but would get to vet it before declaring support. This isn’t really so; Labour are in opposition, and barring extreme exigencies they will be for at least 2.5 years to come. Given the Greens’ long-standing commitment to gay marriage and remarkable success in the member’s ballot, there’s a better-than-even chance that a hypothetical same-sex marriage bill drawn at random would be theirs.* There are plenty of potential pitfalls in such a bill, if badly drafted, and it is reasonable to hold reservations.

Other criticism of Shearer has centred on the argument that Obama’s political context is much more hostile to gay marriage, and his declaring in favour of it constitutes a genuine act of political bravery, while it’s a rather less contentious issue here. Also not entirely fair; of course, that difference in political context exists, but Obama is in power, and (largely due to Republican infighting) in political ascendancy, while Shearer is in opposition and in the doldrums. It is also very unlikely that any gay marriage bill would pass the current NZ Parliament, especially now that social-conservatives like NZ First are back in.

So on the merits, criticism of Shearer for appending this seemingly-innocuous qualifier seems a bit unfair. But there are two better explanations for hostility: first, he misread his medium; and more importantly, he misread the moment.

The medium and the moment

Obama made his statement in a medium and situation that afforded him considerable control over how his message would be transmitted and received, and that enabled him to articulate his position both from a personal perspective and politically. Good Morning America was a sympathetic venue; morning TV is warm and nonconfrontational, on the ABC network even more so than usual. It is not strictly time-controlled and interviewers generally do not play hardball. Its audience is more liberal, more female, and more inclined to respond favourably to expressions of personal warmth and reflection such as this one.

Shearer chose Twitter to make his announcement — the most constrained medium possible, one that permits no contextualisation, no emotional or personal connection. Given his performance to date as leader of the opposition, and the NZ Twitter left’s activist bias, it’s probably also one of the more hostile media open to him. It’s not talkback, but in some ways it’s worse: a lot of people who really want to like you, but are already frustrated and disappointed and are beginning to despair can be a harsher audience than your outright enemies. Twitter also means that you are expected to be spare and to the point, and to only include detail that is significant. By hedging, he signalled that his position was not firm or genuine. The medium is the message, so the inclusion of an obvious redundancy like “need to see the detail” when characters are so limited doesn’t look like understandable prudence, it looks like fuzzy-headed waffly-thinking at best, or political cowardice at worst. David Shearer mistook a platform for slick, aspirational one-liners as the venue for earnest political positioning.

And that leads to the most crucial point of all: Shearer misread the political moment. Obama’s declaration in personal, philosophical terms of his “evolution” from someone who did not support gay marriage to someone who does was a watershed moment, a genuinely epochal event: when the President of the United States of America supports your cause, all of a sudden it looks a lot more like happening. A loud shot was fired in the culture wars; it instantly became global news, and with the news came a wave of liberal euphoria. This was, as Russell Brown noted, the best possible moment to note Labour’s progressive history and rededicate to the goal of marriage equality, but it was not a time for wonkish quibbling about details, or careful delineation of party policy. The moment was one of joy, of celebration, of possibility — of hope and change — and any response had to be congruent with that. Shearer’s wasn’t. The contrast jarred, and made the other, lesser, deficiencies in the message and its presentation more evident.

Substance, context, medium and moment. You can’t really afford to be without any of these, but if you’re trying to catch a wave of public sentiment, you really have to get your moment right.

This is symptomatic of Labour’s ongoing failure to articulate its vision: a lack of mastery of the tools and techniques at their disposal. Shearer’s lack of authenticity and his inability to speak clearly and unequivocally from his own position, that I touched on in my last post on this topic, was depressingly evident in this episode, and it may be that he’s still being tightly managed. A more concerning possibility is that this is the real David Shearer: lacking in virtù, like his predecessor.

But despite everything, I think this was a good experience for Labour — hopefully it has demonstrated to them that sometimes being timid is worse than being silent. If “go hard or go home” is the only lesson they take from today, it will have been worth it.

L

* Hypothetical, because none are in the ballot at present, though I expect that to change soon. Idiot/Savant drafted one some years ago, and it would not be an hour’s work to get it in.

Showing The Money versus Making Numbers Work.

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That simple phrase “make the numbers work” catches John Key’s approach to the perennial tension between efficiency and transparency in a democracy. To simplify things, it can be said that the more democratic and transparent the policy process, the less efficient it becomes. That is because the more actors are involved in policy decisions, the more likely that additional decisional sites and veto points will be placed in front of policy choices. They key is to find an appropriate balance between efficient policy formulation and implementation and open participatory representation by all potential stakeholders. If forced to choose, democrats err on the side of representation. Authoritarians prefer efficiency.

The corporate world has no objective need for balance. What matters are balance sheets in the black. Firms are structured so that decision-making is hierarchical rathe than horizontal, with decisions flowing from the top rather than as a result of inputs from the bottom or from external parties. Managers rule, workers obey, and shareholders or owners reap profits. Given the sensitivity of any given project, public consultations might be invited and consideration might be given to mitigating factors that impinge on profitability, but the bottom line is that the numbers work in favor of owners, investors and share-holders.

John Key came from (and is likely to go back to) such a world. In fact, with a personal net worth of around $60 million he is a small time member of the “Masters of the Universe:” the network of financial elites (stock brokers, money managers, currency traders, hedge fund administrators and bankers) built up in the 1990s and headquartered in London, New York, Geneva, Hong Kong and Singapore who made the calls on how global liquid assets should be invested. Theirs is a world of numbers, not morality or ethics, and their worth to the network was and is their ability to make the numbers work when constructing investment deals. They answer to themselves and their clients without regard to the public interest because, quite frankly, they are interested in private gain rather than the public good.

With that in mind the self-styled CEO of NZ Inc., John Key, advised himself that changing gambling laws so that SkyCity can have another 500 slot machines in return for building a convention centre on adjacent land at no tax payer expense was a neat deal that was in both the private and public interest (the public presumably being interested in the tax revenues and ancillary benefits that will accrue from having the convention centre up and running, which is a whole different story). By that logic the numbers work.

In order to come to this conclusion, however, NZ’s self-styled CEO had to ignore the counsel of the Auckland City Council, local iwi, problem gambling-related mental health organizations, the Police, traffic authorities, tourism operators and a host of other potential stakeholders (I mention these because the proposed site of the convention centre involves a myriad of urban planning considerations and is only handy to the Casino and not to the Viaduct, Cloud, Winyard Quarter, Ponsoby, Newmarket or other entertainment districts that depend on tourists). When I say “ignore” I mean that he chose not to solicit advice from any of these parties rather than turn his back on advice already given. Mr. Key’s self-advice also told him to order an end to all other tenders once SkyCity got involved, some of which might have contained the input from non-investor interested parties such as those mentioned above. But as a minor Master of the Universe why should he bother with pretenders and outsiders when he could seal the deal with SkyCity for a small change in an industry-specific law? The Hobbit saga taught him that allowing non-investors to have a say could well kill the deal, so this time around he made sure that negotiations were kept quiet.

Clearly Mr. Key is a man who understands numbers and efficiency. But perhaps he spent a bit too much time in Singapore, where public input into policy decision-making is inconsequential to the point that it is not even considered even when it comes to large public works projects (such as the expansion of the MRT train lines currently underway, which have displaced thousands without any input from them and with compensation determined not by market value but by government fiat). In Mr. Key’s world he does not have to waste time and money listening to the blather of a host of obstructionists and self-interested losers (because, after all, he only deals with winners). He is there to crunch the numbers and do the deals. In the pokies-for-convention-centre trade he has done so, efficiently.

No wonder it is rumored that he is tiring of the job. Here he is, cutting deals and helping commercial players make serious money just like in his good old days in the private sector. But now he has to put up with ex-post whingers and other plebians who all want a voice without a full command of the power of numbers. Plus, he is surrounded by career politicians who for the most part could not make a buck even if they won lotto, and the opposition is nothing more than a bunch of special interest namby-pambies who would not get past the lobby of his former corporate headquarters. Why should he stick around and have to listen to their nonsense about addiction, traffic and other social costs?

You have to feel for Mr. Key. Once he was in the stratosphere, unaccountable to anyone but his corporate masters and the private interests that they served. He made money off of money without having to add value or increase production anywhere, and he got rich doing so in part because he made his name in an authoritarian country in which numbers, not people, matter most. Now he has to smile and wave to a bunch of provincial hicks self-absorbed in some weird Antipodean PC navel-gazing where everyone has a say and little gets done.

Then of course there is John Banks, and how he reads the numbers. For Mr. Banks the deal is not about making public and private numbers work. It is about private interests showing him the money in order to advance his political fortunes. Whereas Mr. Key was looking for a way to balance a specific private actor’s desire with a vague public interest (again, assuming that a convention centre adjacent to SkyCity is in the public interest), Mr. Banks was looking for campaign contributions. Presumably there was a quid pro quo involved with at least two known private parties, SkyCity and Kim Dotcom (there are plenty of others who donated “anonymously” to Mr. Banks but let’s focus just on these since they are in the news). What the expectations were for deliverables from Mr. Banks is as of yet unknown, although whatever they were it appears that Mr. Dotcom now feels that he was stiffed on the deal and is exacting his revenge by releasing details of his donations to Mr. Banks’ mayoral 2010 campaign. Whatever it was it was not in the public interest unless one thinks that granting Mr. Dotcom special favors is a collective good.

In the end, what Mr. Key did was not very democratic but it was legal and efficient as far as the tightly defined numbers behind the deal are concerned. Mr. Banks, on the other hand, had no public interest in mind when he solicited funds from Mr. Dotcom and accepted those from SkyCity, even if the latter’s donation was the same as the amount donated to Len Brown at the time (to his credit Mr. Brown reported the donation from SkyCity to his campaign, which mirrored that given to Mr. Banks “anonymously”). SkyCity was just papering both sides of the mayoral aisle with its symmetrical donations to the two leading candidates, and whatever favor was purchased was bound to be equally small given the amounts involved no matter who won the election. But Mr. Dotcom was an individual who papered only one candidate as far as we know, and he did so in excess of the corporate entity known as SkyCity. He was, in other words, trying to purchase individual favor by backing one candidate over another.

That is why there is a difference between the two men. Mr. Key is an authoritarian-minded money man who thinks he knows what is best for the country without regard to the naysayers and whiners, and who makes the numbers work in favor of his preferred vision. Mr. Banks is an egotistical “show me the money” weasel. With the possibility of more revelations about Mr. Banks forthcoming, it could well be the case that the weasel brings down the money man, or at least accelerates his departure from office.

Fortune-cookie strategy and the Labour leadership

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Since at least the mid-20th Century it has been fashionable in our culture to adopt postures derived from Asian martial manuals — most notably Sun Tzu’s The Art of War, and Miyamoto Musashi’s The Book of Five Rings — in diverse civilian contexts including business, and politics.* There is much to recommend in these texts, but too often they are poorly understood and are reduced to fortune-cookie wisdom, lazy magical thinking of the sort that’s only good enough to bamboozle those who are susceptible to such things. Sun Tzu in particular is a rich mine of sage-sounding aphorisms, and I have indulged in quoting him at times. But it is no get-wise-quick scheme; it’s like a cargo-cult.**

While I have no direct knowledge of the extent to which these ideas hold sway within the New Zealand Labour party, their present strategy bears considerable resemblance to this sort of magical thinking. I’ll cover two specific points brought to light by Claire Trevett’s recent article on the goings-on in the Office of the Leader of the Opposition.

Attitude of No Attitude

Attitude is the spirit of awaiting an attack. … I dislike the defensive spirit known as “attitude”. Therefore, in my Way, there is something called “Attitude-No Attitude”. (Musashi, The Wind Book)

This is the most obvious manifestation of magical thinking: that an official posture of David Shearer “staying above the fray” will necessarily confer a non-politician or statesmanlike aura upon him. Of course, such an attitude can have this effect, but whether or not it does in a given situation is not such a simple matter. Such a strategy could have worked for Shearer, given the right people and the right circumstances, but the right people and circumstances were not present. So the result has been a Labour-party-sized hole in the NZ opposition narrative for most of the past four months.

This hole is not entirely of Labour’s own creation — Shearer took the leadership just before the holidays, and the Ports of Auckland lockout took place within the blessed month between Christmas and Wellington Anniversary where most reasonable New Zealanders will hear nothing of politics. Engaging too strongly with the lockout issue risked alienating the very people Shearer was asking to give him a chance. But the period of inaction has lasted well beyond the silly season, and although some of the Labour caucus have been beavering away, people have not noticed. They have been waiting for the leader, and the leader has not been leading.

I can see the logic: “when we zig, people complain we should have zagged; when we zag, it turns out we should have zigged. Let’s hold steady, bide our time, and become at one with the Universe. At least that way we can guarantee there will be no blunders, and the wheels are bound to fall off this Tory bus sooner or later.” But attitude-no attitude is not merely a damage-mitigation strategy. It is effortlessness, not lassitude. It is creating opportunities to strike, not awaiting them. The opportunities have presented themselves — industrial relations, charter schools, Treasury figures, paid parental leave and the veto, others — and the only time Labour has gotten any traction is with regard to ACC (not of their making), and only then by getting sued by a Cabinet minister!

The past four months have been what another lot of military jargon would refer to as “target-rich”, and Labour largely refused to take advantage of it. Either a zig or a zag would have been preferable to an OM.

The Sovereign and the General

Sun Tzu said: In war, the general receives his commands from the sovereign, collects his army and concentrates his forces … There are roads which must not be followed, armies which must be not attacked, towns which must not be besieged, positions which must not be contested, commands of the sovereign which must not be obeyed. (Sun Tzu, Variation in Tactics)

The “above the fray” strategy noted in Trevett’s article suggests an attempt by Nash and Pagani to position David Shearer as a “Sovereign” — someone who issues orders that are interpreted and then executed by his “generals”, in cabinet and the staff (led by Nash and Pagani.***) Conversely, the strategy said to have been argued by Fran Mold seems to be to position Shearer more as a general, leading from the front.

Both can work, and both do work in the present NZ parliamentary context. But again, the problem with this framing is that it is simplistic — the leader of a Labour movement, as Shearer referred to the party upon attaining the leadership, cannot be above and aloof from the movement, he must be down in it; but he must not lose sight of the bigger picture. It is a near-impossible job and he must own it. He must determine the balance between the various roles that best suits his own strengths, and those of his cabinet and advisors. He cannot do all of it, but how it is distributed must be congruent.

This last — congruence — is crucial. Its absence is what makes a strategy cargo-cultish. To be strategically successful, whatever David Shearer does must be authentic to David Shearer and to the political narrative that he has cultivated; it must not be some get-popular-quick scheme thought up by clever bastards in expensive suits, it has to be his. That it has required such effort to maintain Shearer’s studied aloofness is a strong indication that it is not an authentic strategy, but a pose struck for dramatic effect, and therefore worthless. Bouncing from cloud to cloud, as good as the strategy of aping Key might have seemed on paper, has not rung true because David Shearer is not Teflon John.

One of the most important tasks of leadership — and Sun Tzu goes on and on about this as well, but I’ll spare you — is to surround oneself with good people, and people suited to their tasks. It is also crucial that a leader has the strength of will to maintain his own strategic direction, and this is doubly true of Shearer, who was elected leader on the claim that he was beholden to no-one. His performance at these tasks has been very poor. It may be that he was drawing from a shallow pool of talent, it may be that he was continuing the network of patronage, it may simply be that he thought John Pagani was the best guy for the job — but his team failed to match Shearer’s strategy of action to the narrative he has built around his leadership, and ultimately that’s his responsibility.

So what now? It’s beyond me. And so as not to provide further opportunities to take an inauthentic path, I’ll refrain from giving any sort of detailed advice, beyond “find your own damned way, choose good people, and avoid magical thinking”. I continue to note the irony that folks who, for years, have pooh-poohed the need for polish and presentation in politics now insist that Shearer’s inability to talk good is what’s holding him back, and even greater irony that staunch supporters of Phil Goff are now abandoning Shearer for having failed to accomplish in four months what Goff failed to accomplish in three years. I also can’t get too cut up about his alienating the old leftist revolutionary guard.

David Shearer now has an opportunity to refresh some of his underperforming staff, and that at least shows an awareness that Goff’s office did not show until much later in his term. It may yet be that he has to go; it may be that he really has no authentic vision, style or strategy, and even if he has them, if he can’t articulate them then it’s all moot. Things are not good, but there’s still plenty of time to roll him if that’s what’s needed. Patience, though not lassitude, remains a virtue.

L

* Machiavelli’s The Prince and Clausewitz’s On War are also popular, and justifiably so, though they lack that easy Orientalism of the former two.
** I have seen it persuasively argued that this sort of thing had a central part to play in both the boom and the bust of Wall Street in the 1980s.
*** While it is tempting to suggest that this was part of a Tuckeresque scheme to concentrate power with the senior staff, I think the truth is more depressingly mundane.

Leaving Bamiyan.

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It looks like the NZDF will pull out of Afghanistan next year, one year earlier than originally planned. According to the government the situation is so good in Bamiyan Province that responsibility for security has been turned over to local Afghan forces and the NZDF has downscaled its armed patrols as it concentrates on packing up. The Hazaris who populate Bamiyan are said to be happy with what the NZDF has done with the Provincial Reconstruction Team and will assist the UN and other international organizations in continuing the reconstruction work once the NZDF has left the theater. According to the NZDF and National government, the PRT experience in Bamiyan has been exemplary and is a model for such military-led reconstruction efforts in other future theaters.

But there appears to be wrinkle in this happy picture. Five Afghan translators who worked with the NZDF have unexpectedly approached Defense Minister Jonathan Coleman during a press junket to the PRT (which also saw MSM types like Garth Bray along for the photo op dressed nattily in body armor while posing in front of dusty military hardware and encampments). They did so to request political asylum. The translator’s approach was unexpected, which speaks to the NZDF not being aware of their intentions in advance of the Minister’s visit (which left him at loss for an answer since refugee issues are not part of his portfolio–not that such subtleties matter to Afghans). That suggests a failure in communication between the NZDF and the people it relies on to convey its message in Bamiyan, which is problematic because since one would assume that the relationship between the translators and their patrons would be close and trusting. That the translators kept their concerns a secret until the Minister arrived speaks to underlying differences between them and the NZDF command in Bamiyan.

The translators claim that they will be harmed or killed once the NZDF leaves Bamiyan. Eh? What happened to that much vaunted security situation? If the NZDF did such a good job and was well received by the locals, why would these men fear for their lives? More generally, did the NZ government give any thought to the post-withdrawal security concerns of its closest Afghan interlocutors? Did the NZDF command in Bamiyan flag any such concerns to the government? If the security situation for allied locals in Bamiyan is not as good as has been announced, did the NZDF or NZ government mislead the public as to the truth of the situation?

The translators want special consideration rather than wait for the UN refugee-granting process to take its years-long course (by which time, if their fears are true, they might well be dead). In other words, the translators want to jump the queue because of their extenuating circumstances. That puts the NZ government in a difficult position. If it denies their claim and tells them to get in line like everyone else, they might die as a direct and immediate result of their association with NZ troops. If they get favored treatment then it opens the government to accusations that it responds opportunistically and plays loose with the rules for granting political asylum.

The government has already caused itself a problem. Minister Coleman, caught off-guard by the request on what was supposed to be an easy Anzac Day-related “meet and greet” with the troops, said that NZ has a responsibility to the translators because of their service to the NZDF. That opens a can of worms, because if NZ grants the translators refugee status on special grounds, that sets a precedent for anyone else in Afghanistan who worked with the ISAF coalition to make similar claims based upon fears for their post-withdrawal security. Cooks, cleaners, drivers, translators, lovers–the list of people who could claim persecuted status based on their association with ISAF is bound to be long. NZ offering asylum to these men consequently becomes a thorny diplomatic issue not only with its ISAF coalition partners (who face the possibility of being inundated with similar requests), but also with the Afghan National Government that is supposed to be capable of guaranteeing security once ISAF is gone.

Whatever the decision on the translator’s request, the episode has raised more questions about conditions in Bamiyan than the NZDF appears willing to answer. One thing is certain. No matter what the outcome someone is bound to be left in the lurch, and that includes the NZ MSM types who failed to realize the full significance of what they witnessed when the translators were introduced to Mr. Coleman.

 

 

Labour’s new Tui Ad.

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Former Police Minister Annette King says that she and her cabinet colleagues were not informed about Operation 8 until the night before the dawn raids. She says this after stating that the Solicitor General advised the Police at the time to charge those arrested under the Terrorism Suppression Act, only to change his mind after the raids were completed.

Annette King expects us to believe that she, as Police Minister, had no clue about a police operation that was going to invoke the TSA for the first time, not against foreign terrorists but against a collection of well-known domestic dissidents with long histories with the Police. She expects us to believe that Helen Clark, the micromanaging, all-knowing Prime Minister and Minister for Intelligence and Security, had no clue about Operation 8 even though the TSA was used to justify the electronic surveillance of the suspects a year before the raids, that SIS assets were used to that end, and that the raids would be carried out on Tuhoe land as well as in cities (a delicate political issue, to say the least). She expects us to believe that Phil Goff, the Defense Minister, was clueless about the operation even though, as the foremost counter-terrorism unit in the country, the NZSAS could be called into action should the situation warrant (which would require some advance notice). She expects us to believe that the Combined Threat Assessment Group (CTAG) was not involved in the build up to the raids, or if it was, that this inter-agency task force did not inform any senior government minister until the night before the doors were kicked down. She wants us to believe that then-Police Commissioner Howard Broad, well known for his ties to the the Prime Minister, did not utter a word about who was targeted and why until less than 12 hours before the cops rolled.

She would like us to believe that with the possible exception of the PM, no one in the 5th Labour government was aware of Operation 8 until October 14, 2007. This, even though multiple agencies were involved and the lead-up  to the raids was over a year in the making.

Yeah Right.