The crisis of the latest incarnation of market -driven economics, particularly in its financial sector, has raised the possibility of political-economic alternatives not so much as remedies but as significantly different approaches to the structuring of national economies in a global system of production and exchange. One of these is a revamped–as opposed to resurrected–market socialism. For those who are not familiar with the concept, a quick synopsis is found here. Although current conditions are different from those that led to the original formulation, some basic tenets can be discerned and elaborated upon. Basically, within a market system of supply and demand, the state operates as a macroeconomic manager (not just a toothless regulator) by obtaining majority stakes in strategic assets (be they primary good or value added). In parallel, at a mircroeconomic level it moves to promote significant (be it as a majority or as part of a tripartite arrangement with the state and capitalists) worker ownership in strategic industries (such as through employee stock option programmes (ESOPs) or by encouraging the formation of cooperatives) in exchange for wage restraint and greater productivity. The logic is that with workers as co-owners of the industries in which they are employed, they will understand managerial rationales as well as the conditions on the production line, thereby promoting what could be called “equitable efficiency” in production. Non-strategic components of the economy can be encouraged to follow suit but will not be forced to engage in such “socialising” programmes, but will be taxed at a higher rate if worker participation schemes are not incorporated. All sectors will follow the laws of economic efficiency followed by private firms–that is, the market logics of supply, demand and prices. Hence, the object is to prevent rent seeking behaviours usually associated with state ownership of the means of production–to wit, no “make work” or ghost worker schemes, no padding of employee roles, no patronage or clientalistic networks etc. Needless to say, unions may see a threat in this, but their self-interest as agents should not detract from the potential benefits of ownership accrued by workers as a class as well as principals of unions (where they are organised). Union shareholding schemes might be one way to reconcile the interests of agents and principals in such an event.
Under such a market socialist approach a restrained individual taxation rate that increases the amount of discretionary income to wage-owners as well as as capitalists can be complemented by a differential corporate rate that rewards worker ownership with lower rates while maintaining a higher rate for “traditional” firms–i.e. those that appropriate the surplus generated by workers in the form of profits that are in the majority distributed to non-workers (be they shareholders or managers).
With a greater State macroeconomic presence as a stakeholder in strategic industries and manager of microfoundational (the orientation of specific industry) policy, coupled with active promotion of worker participation in ownership of the industries in which they are employed, backed by a taxation policy that rewards those who see the wisdom of making workers co-owners and understand that the State, as representative of all sectoral interests, is better suited for macroeconomic management than individual capitalists or their associations, a new market socialist project can be advanced that will filter global market dynamics into a more nuanced, and fairer, distribution of wealth and income in society. In a small island trade-dependent state, socio-economic stability depends on this.
There is actually a model for such a system, although it has yet to incorporate worker ownership schemes as part of its developmental project. That model is Singapore and the only reason it does not incorporate policies of worker ownership into what is otherwise a state-dominated export-oriented economy that is successful is that it is a)authoritarian and thus can impose its will without worrying about the filter of mass consent; b) foreign investors resist worker participation as a condition for investment; and c) as a result of the previous two factors, foreign workers on temporary visas unprotected by labor laws reserved for Singaporean citizens are used to structurally undermine any moves in that direction.
As a liberal democracy NZ can not emulate everything that Singapore does, but what it can do is note the commanding position of the State in its macroeconomic affairs, to include its use of State holding companies as channels for public investment in a range of “private” industries as well as its use of taxation as an incentive for corporate investment and production, on the one hand, and household consumption on the other. Admittedly, the argument presented here is just a simplified sketch of the possibilities of market socialism in the present conjuncture, but the intention is to raise the point rather than fully elaborate upon it. The latter task is left to the readers.
Now that the Green Party has matured into the third most important political party in NZ, it is time that it develop an equally robust foreign policy stance that moves beyond its visceral commitment to pacifism, human rights and civil liberties, international ecological defence and anti-imperialism. Although laudable goals that still have a place on the Green foreign policy agenda, these foundational pillars need to be supplemented by a more nuanced and less ideologically rigid, but no less idealist in principle, approach to New Zealand’s foreign affairs.
Lets start with defence and intelligence. The Green Party should maintain their absolute commitment to conventional and unconventional weapons non-proliferation, nuclear disarmament, prohibitions of chemical and biological weapons and bans on the manufacture and sale of land mines and other indiscriminate munitions. It should maintain its commitment to seeing the NZDF externally focused on peace-keeping and nation building as its major priority. It should resist efforts to turn the NZDF in to a mini Australian armed forces, and resist the calls for the NZDF to follow Australia, the US and the UK into battle no matter the context or justification. But it also has to realise that NZ’s own defence is premised on its being a good international security partner, and that it cannot abrogate its responsibilities in that field. To that end, the Greens should support efforts to restore a close air/ground support wing to the NZAF in order to provide NZ peace-keeping troops with independent air cover in foreign conflict zones. Even when under multinational military control such as the ISAF mission in Afghanistan, military protocols allow services of each country to protect their fellow troops as a priority. If NZ is going to continue its level of international troop deployments in conflict zones like Afghanistan, East Timor, the Solomons and elsewhere, the ability to provide protective air cover to its troops on the ground is surely a worthy cause. And, as it turns, out, be they rotary or fixed wing, surplus close air support platforms in the inventories of several NATO and other countries come relatively cheap when compared to the aborted F-16 purchase of a decade ago.
Likewise, the Greens needs to support the reinforcement of the Navy’s long-range patrol and interdiction capability, if for no other reason than to protect the resources located in the NZ Exclusive Economic Zone and to deter illegal poaching of whale and endangered fish in the waters adjacent to it. Moreover, such a capability can also serve in anti-piracy roles in the sea lines of communication most vital to new Zealand’s trade, and to keep track of the increasing presence of foreign submarine and surface fleets in and around New Zealand waters. Passivity in the face of such probes will likely be interpreted as acquiescence or inability to counter them, which will encourage further encroachments into the EEC, if not the territorial limit itself. That is also why the Greens need to support the continuing emphasis placed on the NZSAS as the country’s special operations branch. What it can do differently is question the deployments they undertake on behalf of foreign powers, perhaps broadening the scope of their activities to areas outside of the usual SOLIC (special operations and low intensity conflict) scenarios.
Thus, the Greens should support efforts to increase NZDF spending to 1.5 percent of GDP, in line with the lower threshold of OECD nations, but with a specific focus on the Green “line” of defense and security priorities. No more over priced and ill-suited LAVs, no more $1 million-a-copy anti-tank shoulder fired rockets–just the best weapons and platforms for the NZDF’s unique “niche” role in international security affairs. Even if coat-tailing on previous Labour initiatives, a neo-realist Green approach to defence can provide a human security orientation that extends beyond the traditional security concerns of the major parties.
With regard to intelligence, the Greens must continue their valiant opposition to the unaccountable and often rogue behaviour of the NZSIS and Police intelligence. But it must couple its demands for more democratic accountability and transparency–something that may begin with the appointment of Russell Norman and Tariana Turia to the Parliamentary Security and Intelligence Committee–with a more reasoned demand that external intelligence collection be separated from domestic intelligence collection and delegated to different agencies. Counter-intelligence functions can be shared because foreign espionage often follows commercial and criminal avenues, but the business of spying in foreign places is very different than spying on one’s own citizens. Thus the Police should be responsible for the latter, with all of the attendant legal safeguards that purportedly govern their operations, whereas the NZSIS can limit itself, along with the GCSB, to external intelligence collection and analysis. No other political party has even mentioned this, much less understood the multiple rationales as to why decentralisation of intelligence functions is actually an important step towards removing the authoritarian culture so deeply imbedded in New Zealand’s intelligence apparatus. In line with these reforms, the Greens should demand that the PSIC be elevated to the status of select committee allowed to review classified material in closed session. Only then will real parliamentary oversight of the intelligence apparatus be possible.
In terms of trade, the Greens need to modify their generic opposition to trade. Instead of a seeming blanket opposition to open economies, the NZ Green Party needs to understand that for a vulnerable isolated and resource-scarce country like NZ, trade is a lifeline. It is here to stay as the mainstay of macroeconomic policy. Therefore, the issue should not whether to trade or not to trade, but how to trade? The answer, as I have mentioned in previous posts, is to trade fairly as well as (or as opposed to) freely. Trading fairly means to concentrate not just on tariff reduction and other bi-or multilateral entry conditions, but on after-entry conditions pertinent to labour rights, working conditions, gender and indigenous issues, wages, health, safety and environmental standards. The goal is to promote a level of regulatory symmetry n the trade relationship, thereby leveling the playing field or at least standardising the rules of investment and competition in the interest of productivity, growth AND human dignity in the labour process. This is as true for NZ investment abroad as well as foreign investment in Aotearoa. The basic thrust is to do onto other (foreign) laborers as what one would do onto oneself (or one’s co-nationals). Capitalists may not like the impact on their short-term profits of promoting such trade agreements, but it is in their longer-term interests, in terms of a guaranteed restrained rate of profit, that they play fair and symmetrically. Moreover, such a stance places NZ at the forefront of trade debates that emphasize a balance between profit, growth and larger communitarian considerations.
Diplomatically, the Greens need to promote a strengthened constructivist-institutionalist approach to foreign policy. Constructivism in foreign policy is focused on normative value change in key policy areas (say, human rights and disarmament) and institutionalism is focused on strengthening multilateral institutional approaches to conflict resolution and global peace and stability based on shared ideals. Although Labour advocated such an approach, it too often has compromised its stance in order to curry favour with trade or defence partners. National has no commitment to idealism in foreign affairs. Thus it is left for the Greens to push hardest for an ongoing, if not increased commitment to finding multilateral institutionalised approaches to the sources of international disputes, and to push for progressive value change within international organisations and regional institutions. In doing so it will help continue New Zealand’s reputation as an honest international broker, mediator and arbitrator committed to supra-and transnational methods of grievance redress and resolution. After all, if the world is truly to move away from the anarchic” state of nature” that is the realist conception of international affairs, it needs to move beyond the nation-state as the ultimate adjudicator of international disputes. It is up to small countries to make the case. It is their self-interest to do so, and that is eminently realist in conception. It is, in other words, a bit of Green (neo) realism at play.
All of this is a big task and may run counter to the wishes of more militant elements in the “watermelon” constituency of the Green Party (which should be seen as a source of strength rather than as a weakness). Now is the time to move beyond the parochial environmentalism, classism and other foundational Green principles and towards an agenda that attracts more mainstream voters in pursuit of being a legitimate swing vote and therefore real power broker in the New Zealand political system. This foreign policy manifesto is a gesture in that direction. That does not mean abandonment of the foundational principles, but the enhancing and expanding of them. This is important because only the Greens have the ability to contribute significantly to a shift in the status quo political discourse currently on display. No other party does.
After all, with ACT having prostituted its libertarian principles to the crime and punishment authoritarians headed by Mr.Garrett (see Lew and Anita’s posts on the issue below), the Greens are the only honest political party left in parliament–with them, what you see is what you get, full stop. Given that unique position of advantage, now is the time for the Green Party to develop more depth to their policy agenda, which is why this post is tabled.
In 2007 14 members of the current National cabinet voted to support an amendment by Gordon Copeland which would have put an anti-abortion doctor onto the Abortion Supervisory Committee in an attempt to restrict access to abortion. Since early this decade National has been building its relationships with conservative and evangelical churches, trading policies and promises for votes even bring a minister from a conservative evangelical church into caucus.
At the same time the anti-anti-smacking lobby is regrouping around an anti-abortion campaign – a lobby National owes a significant debt of gratitude. (Try about half way down this, search for “Andy Moore” if it’s quicker than scrolling)
Restricting our right to abortion is on the agenda for National’s first term.
 14 of the 19 who were able to vote at the time.
Posted on 18:17, March 20th, 2009 by Lew
BK Drinkwater replied several days ago to my post on the core philosophical difference between Labour and National. Unfortunately I’ve been too busy (with work and with caring for family members at either end of their lives) to give very much attention to this sort of thing, and this state will continue for the foreseeable future. His is a good post, and although it’s couched as a critique of mine, I mostly agree with it. It’s not so much arguing a different point than mine as looking at the issue more deeply. I especially like his restatement of the matter in formal terms:
A therefore B (therefore A)
(Ignoring for a moment that the example isn’t accurate because both National and Labour believe in the things ascribed above to Labour). The notional ambitionist is concerned with negative rights because they see the world as basically beneficial, and consider that if people are just left the hell alone human beings will generally be sweet. The notional mitigationist ideologue, on the other hand, believes that the world is a harsh place, and that minimum entitlements of comfort and dignity should be guaranteed in positive rights. The two positions positions don’t explain the worldview as much as they are derived from the worldview. Other dichotomies map to this with a fair degree of accuracy: the abundance versus scarcity split of how full the glass is represents just one, you can probably think up others.
Above, I used `the world’ deliberately, because I think a good case study for this sort of thing are the linked matters of climate change and peak oil. Ambitionists, by and large, see neither of these as a great problem, because at core they hold an unshakable confidence in humanity’s ability to overcome anything and will find ways to mitigate against both, given enough time and good reason to do so. This is the throughoing theme of Atlas Shrugged. Mitigationists, on the other hand, believe that there are forces greater than humanity and that these problems cannot be overcome – at least not by the ambitionist approach. This is the throughgoing theme of another great dystopic novel, The War of the Worlds, where humanity is saved through no fault of our own but through careful preservation of a lower bound.
These dichotomies are heavily propagandised, and are a significant matter of political identity. I reject much of the Marxist cui bono? approach to explaining political allegiance, and rather think that (warning, rash generalisations follow) the wealthy support National because National reflects their experience that the world is a sweet place where everyone has opportunities, they just have to take them; while the less-wealthy support Labour because Labour reflects their experience that it’s tough to scrape by without a decent base-line of public support. This leads me to my next point: what do people really believe?
More on the money proxy
I suppose that’s my A.
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.