Out-perform the private sector or join it.
This is the ultimatum I’m reading into Simon Power’s letter to SOE chairs.
I think it’s entirely right for the government to expect the most responsible and diligent business practice from SOEs – but I don’t think it’s reasonable to expect them to outperform the private sector which is unconstrained by the same responsibilities borne by a state-owned business. The private sector is responsible only to the profit motive of its shareholders, without the constraints of the triple bottom line and exemplary standards of conduct, transparency and long-term commitment.* Inasmuch as these constraints represent economic profitability traded off against other types of value, they require a SOE to operate at a disadvantage compared to private concerns when performance is measured purely in terms of the raw numbers.
If the ultimatum is delivered (as I expect it will be) in more certain terms during the 9 April meeting, it will mean two things: first, it should drive substantial changes in culture and efficiency, which is a good thing, and is the stated purpose. Second, if the different constraints under which SOEs operate are not taken into consideration and the performance evaluation is undertaken on strict terms of profit (and given the Prime Minister’s decree that electricity prices won’t rise) then they will be set a task at which they cannot possibly succeed, and their expected failure to outperform the market will prepare the groundwork for them to be sold during a second term.
* You might think that these constraints are a load of old bollocks, but that’s a different argument, since the government’s stated position is that they’re just fine.
When you look at the current government’s first four-and-a-bit months you see a right wing government implementing a swing to the right at high speed. Fair enough, they won the election, they reckon they’ve got the mandate. Even Key has stopped describing himself as “centrist” and now says “centre-right”.
Yet when you read the mainstream media the word “centrist” is still firmly attached to Key’s government. Well the New Zealand media anyhow, overseas they recognise a good old fashioned right wing market economics agenda.
So, what will it take for the media to stop believing it’s own commentary on last year’s election (carefully prepared for it by the National campaign team) and recognise that we elected, and now have, a right wing government? They’re making right wing choices: tax cuts for the rich instead of tax cuts for the poor; business own profits over staff wages and jobs; and an authoritarian state over human rights. We can argue about whether they’re the correct choices but they are the choices of the right.
We have a right wing government, that’s all.
I’m guessing most of the country has moved on from this issue, but last week I suggested that vto post his email reply from Garrett on the `creature comforts’ issue. He didn’t want to, which is fair enough, but I was interested in my own personalised bit of invective, so I emailed him myself.
I didn’t get invective, I got an explanation of what (and how) he really thinks on this matter, which is most excellent. For all that I disagree with his policies and his ideas, David appears to be entirely lacking in guile, which can only be a good thing inasmuch as it enables the electorate to take him at face value. (Ok, not entirely without guile – he was complaining on Focus On Politics (audio) on Friday that the media take his jocular utterances too seriously.)
The email thread is reproduced verbatim below the fold. I had delayed posting this over the weekend in order to give David time to reply to my last message, but as of this morning he hasn’t done so.
Between even more travelling for work than usual and a cold I’ve been a bit beyond writing, although my list of half written posts has grown :) Of everything that’s gone on recently it’s the issue of prison rape that’s been closest to a coherent thought. More precisely, why do we accept prison rape?
Since David Garrett’s offensive comments plenty of people have talked about the idea of rape-as-a-part-of-your-punishment and I’ve particularly liked:
All of the MSM commentary, and most of the on-line discussion, has taken for granted that prison rape occurs. Where is the analysis of how much prison rape occurs and what is, or could be, done to to eradicate it?
When did prison rape gain acceptance as a normal and inevitable part of our society? What would it take to change that?
The new Parliamentary Intelligence and Oversight Committee has been announced, and it has the potential to be a milestone for intelligence oversight in NZ. Tariana Turia and Rodney Hide were appointed by John Key (who chairs the committee), and Russell Norman was chosen by Phil Goff (who also serves on the committee). Turia and Norman lead parties that have had their members spied on by the SIS or Police, and Hide has opposed on libertarian grounds the expansion of security based constraints on civil liberties (he opposed passing of the Terrorism Suppression Act, among other things). Thus three out of the five new members have been critical of the intelligence services, which is in stark contrast to previous members during the Fifth Labour government. Although the possibility of their being coopted cannot be discounted, there is an equal if not greater possibility that their appointment signals a shared belief by Mr. Key and Mr. Goff that the time has come for a review of the way intelligence operations are conducted in NZ. Lets hope so. There are already signs that moves in that direction are afoot–Mr. Key’s request of the SIS Inspector General to report to him on the domestic spying programme and SIS Director-General Warren Tucker’s apparent commitment to more transparency being two examples–but what is needed is for the committee to undertake a thorough review of the NZ intelligence apparatus, including its legal charter, operational conduct and organizational focus, and its accountability to parliament as well as to the government of the day. In short, rather than the ineffectual government and SIS lapdog that it was during the Fifth Labour government, the committee needs to grow some teeth and bite hard into the meat of the matter–the lack of transparency and accountability traditionally exhibited by important elements of the intelligence community. That requires a re-write of its charter, since it is not a select committee and therefore does not have the independence or authority to demand classified briefs (or any other information) from the agencies it supposedly oversees. A more detailed review of the potential for reform embodied in the new committee is offered in this month’s “Word from Afar” column at Scoop (http://www.scoop.co.nz/stories/HL0903/S00147.htm). For the moment, the new committee should be applauded, yet more importantly, encouraged to undertake its responsibilities in pursuit of a new culture of democratic accountability and transparency in the NZ intelligence services.
Posted on 23:12, March 11th, 2009 by Lew
It seems to me that the main difference in principle between Labour and National-based governments in NZ is an old question of utilitarianism – whether one should work toward achieving the greatest good or toward ensuring the least harm. The two philosophical positions are sketched out reasonably well in the wikipedia article on utilitarianism.
In principle, the difference boils down to a strategy of positive ambition versus negative mitigation. The former sees achievement as the highest goal, and failure as a necessary collateral effect of attempted achievement. They grade a society by its upper bound, by how much success its leading members achieve. In this regard, the ideology emphasises ambition, celebrating that qualities as the most beneficial to society while disregarding the worst consequences of its failure – destitution, disease, starvation, etc. The caricature of an ambitionist, if I may coin the term, sees the world as humanity’s oyster, and humanity in positive terms – as potentially successful and satisfied and healthy and secure, and considers that anyone who does not achieve these things has simply not tried hard enough, or for long enough, or lacks the innate characteristics needed to achieve those things and is therefore not entitled to them. Entitlement accrues to a person on the grounds of their success. In symbolic terms, the way to appeal to these people is in terms of opportunity, advantage, individuality, and the idea of just desserts for effort rendered.
On the other hand, the caricatured mitigationist (to coin the opposite term) grades society on its lower bound, by the extent to which the least successful members of the society are allowed to suffer by the more successful. They see the world as a dangerous, inhospitable place in which the default state is abject meanness, and humanity in negative terms of limiting those inhospitable forces, keeping out the cold and the hunger and the disease, while anything else is a bonus. Entitlement accrues to a person on the grounds of their humanity alone. The way to appeal to these people symbolically is in terms of compassion, brotherhood, sacrifice, cooperative achievement and that principle that none should suffer needlessly.
Although it may sometimes seem so, the world is not made up of caricatures, and this is my round of defence against complaints of false dichotomy. Both of these two broad positions hold some resonance for each of us, and it seems plausible that the balance of that resonance has a strong determinant effect on our political preferences. The problem, as always, comes with implementation, and the primary problem of implementation in the society we have is that money is used as the main measure of success and therefore as a proxy for a person’s innate value. This is perfectly acceptable to the ambitionists, whose ideological basis enables them to embrace money just as easily as they might embrace any other measure of human importance, but it’s not so attractive to mitigationists, who argue that entitlements accrue to a person on the grounds of their innate status as human beings and members of society, regardless of their achievements.
Push comes to shove at times like this, when things (in terms of that prevailing measure of success, money) are tight. When many people are deprived them, the human necessities of health, comfort and dignity can more readily be achieved by an idea of the common good than by the burning desire of ambition. However, when things get good again, it’s a terribly hard ideological position to peel back, and inasmuch as the common good can constrain the urgency of effort required for success it can be counter-productive, entrenching mediocrity. Indeed, without the incentive of individual reward for ambition, it could be argued that society would never pull out of any trough. But contrary to what the Randroids say, this isn’t an absolute constraint. In good times it’s easy to emphasise the greater good because a reasonable minimum standard can be expected to exist or be trivially provided for the few who need it. None need suffer except by a relative standard. In hard times, however, when raw success is less achievable, mitigating harm at the temporary expense of ambition becomes more valuable by its easy achievement.
The case in point is the Key government’s recession strategy, which gives a great deal of consideration to maintaining ambition but little to mitigating harm. It’s a tacit acceptance of a certain amount of harm in service of a longer-term good. If not from the policy itself, you can tell this from the terms used to talk about it. That’s a complicated philosophical and utilitarian question for a supposedly non-ideological government to be tackling.
WikiLeaks has published four internal NATO briefing documents pertaining to the war in Afghanistan – including the Master Narrative which sets out the operational and strategic and symbolic parameters which guide ISAF’s media posture.
You can get the documents here. Interesting and revealing stuff but possibly more mundane than you might expect. If I get time over the next few days I’ll post a few observations (and if anyone else wants to do so, be my guest). In an epic security fail, the documents were distributed using Microsoft SharePoint, and protected with the absurd password `progress’.
What significance the image of an ISAF sniper posing with the corpse of an Afghan, you ask? This is the amazingly political choice of image on the WikiLeaks editorial which announced this particular leak – saying it’s misleading doesn’t go far enough, it’s an outrageous association to make. But it’s also the polar opposite of the media agenda which these ISAF documents explicate, and in that regard it’s a crafty bit of work.
(Via Bruce Schneier.)
Despite Fairfax papers the Dominion Post and the Waikato Times cheerfully running their “iwi tax” racist propaganda line, eel fishermen working (or not working, presently) in Lake Ellesmere/Te Waihora now claim in The Press it’s nothing to do with race:
That’s Clem Smith, the same person to whom the `iwi tax’ line was attributed a few days ago. What appears to have happened is that their `iwi tax’ line didn’t get as much traction as they expected – even the normally-rabid comments section on the original article was fairly split between the rednecks and the propertarians – and a Ngāi Tahu former Treaty negotiator came out in their defence, making their anti-Māori position somewhat untenable.
Still, it’s good that they’ve backed down. I still believe the levy is a legitimate means of raising revenue to clean up the waterway, but I also agree with Rik Tau’s argument in principle that Ngāi Tahu ought to act within the spirit of the agreement rather than exploiting it strictly to the letter. The fundamental problem in Māori-Pākehā relations isn’t a lack of agreements, it’s a lack of goodwill in their implementation. Including the first one – the Treaty.
The government’s plan to build a cycle way the length of New Zealand encapsulates two key themes of this National administration.
Of the two it’s the first that bothers me most (the second is just business as usual for National), building cycle ways to get people to work or study would make a real difference in our real lives. Whether you’re planning for peak oil, a recession, an ETS or carbon tax, or reducing obesity making it safe for people to cycle commute would have been a huge step forward.
Instead we’re green washing the exhaust fumes to look good to the rest of the world.
Juan Linz wrote that political time was like cloud time—it moved at a different pace than chronological time, yet had a discernable rhythm of its own. I would like to reverse the metaphor to note that when it comes to political and economic cycles in liberal democracies, it is political time that is more chronological, whereas economic time is more akin to cloud time.
Under conditions of liberal democracy, political time is codified, demarcated and predictable. Elections are held at regular intervals, parliaments sit for a given amount of days in a calendar year; government departments issue annual reports and respond to inquiries in prescribed (if not timely) fashion, bills are introduced in specified ways within specific timeframes, etc. Even political debates take on a predictable rhythm, with arguments over finances occurring around the time of government budget announcements (in New Zealand that is usually in May), and partisan and personal attacks occurring during periods of relative policy stability. Come summer, most things political more or less stop for the holidays, then resume in the Fall.
Economic time, however, is another matter. Capitalist economies are obviously cyclical, but the cycles are twofold and not coincident with political time. First, there is the “boom and bust” cycle in which markets expand and contract in pursuit of (re) equilibrated growth. This is the cumulus cloud time of economic cycles. That is, the short cycle dimension of capitalist economics, marked by sudden shifts in direction driven by the warming or cooling of market preferences. In parallel, there is a long cycle in which capitalist economies shift between market-driven or state-managed forms. This is the cirrus cloud dimension of economic time. The sclerosis, stagnation or failure of one economic form, such as the market failures now evident, leads to the shift to the other. Thus, the Great Depression spelled the end of laissez faire market economics and the advent of welfare statism, which after the resolution of World War 2 led to nearly forty years of prosperity in the liberal democratic world. In turn, by the 1980s the era of state-centered economics had come to an end, saddled as it was by rent-seeking behaviours, clientalism and systemic inefficiencies produced by bureaucratic distortions of the productive process. What emerged in response was neoliberal market economics. This era was driven by deregulation, trade opening and monetarist macroeconomic prescriptions that were premised on the belief—subsequently proven to be unfounded—that finance capital would be the most accurate determiner of global productive investment.
Two decades later, the era of neoliberal economics has concluded in ignoble fashion. Note that this market-oriented cycle lasted half as long as the previous state-centered cycle, which in turn was shorter than the original period of laissez faire. This shortened lifespan is due to the combination of market-driven globalization of production coupled with exponential advances in telecommunications and transportation. Phrased differently, it would seem that the economic cirrus clouds have sped up at a time when the negative cumulus layer has deepened, all while political time remains constant. Therein lies the rub.
It is generally held that market failures lead political shifts to the Left so as to facilitate the move to state-centered macroeconomic policy. Conversely, state-centered failures are said to lead to shifts to the political Right so as to facilitate the adoption of market-oriented strategies. In the 1930s and 1980s this rule generally held true for advanced democracies. But since economic and political time are not coincident, it is by no means a universal truth that such will occur at every moment of cyclical transition. The current moment is a case in point.
In the US the rule seems to have been upheld, as is true for several European countries. But in France, New Zealand, Japan and Italy, among others, Right-oriented governments are confronted with market failure and the need to provide political space for an economic transition. The political cycle in these countries does not allow for their immediate replacement with Left-oriented governments. There is a lack of synchronicity between political clock and economic cloud time in these countries. This places the ideological beliefs and policy prescriptions of such Right governments under pressure, since in principle they are averse to increasing the role of the state in macroeconomic affairs. Yet the magnitude of the current market failure is such that the role of the State, at least as a macroeconomic regulator, needs to be considered. This consideration needs to happen quickly, since the temporal horizons on finding solutions is near immediate given the speed at which the global recessionary pressure wave is advancing. Put another way, the cumulus and cirrus aspects of economic time have come together in a perfect storm of economic necessity that Right governments find particularly difficult to address, much less resolve without betraying their foundational principles. To do so is to tacitly admit that there are inherent flaws in market logics that require State intervention in order to be overcome (in the reverse of the betrayal of foundational principles and tacit admission of State-capitalist failures by so-called “Third Way” Labour parties).
Thus the dilemma for Mr. Key’s government: how to reconcile clock and cloud time in a small island democracy at the outer edge of an economic storm front? From what has been seen so far, it appears that he has opted to shift to the Left, but as of yet without categorically stating that he is doing so. With ACT in the government coalition, that makes for interesting theater in the months ahead. Or to conclude with yet more metaphor abuse: could there also be internal storm clouds on NACTIONAL’s horizon?