Author: Pablo

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A May Day Reminder.

For workers around the world, May Day is not just a statutory holiday. It represents over a century of hard won rights, rights that in most cases were won in the face of considerable structural and political odds. It is also a reminder that without vigilance, solidarity and organisation, those rights can be lost in the blink of a legislative (if “democratic”)  or blinkered dictatorial eye.  New Zealand is an exemplary case in point, with the legacy of the Chilean-dictatorship inspired Employment Contracts Act still strongly felt in the labour market (and likely to be felt even more so if the National government is able to undertake its proposed reforms of current employment law).

Less people think I am exaggerating about the Chilean connection to the 1991 ECA, let it be noted that its inspiration was the 1979 Plan Laboral (Labour Plan) imposed by executive fiat on Chileans by the Pincohet regime. The author of the Plan, Jose “Pepe” Pineda, was a frequent guest of Roger Douglas and the Business Roundtable in the 1980s and 1990s, and his framework for acheiving what is known as “enforced” or “atomizing” pluralism in the labour market is the essence of the ECA (and one that was not completely undone by the 1999 Employment Relations Act). Atomizing pluralism is the forced decentralization of collective bargaining at the lowest productive levels. It mandates a mix of individual and collective contracts and the multiplication of bargaining agents on the shop floor. The stated intent is to achieve “labour market flexibility,” but the real intent is to destroy the union movement as an effective economic and political agent of the working classes by forcibly dividing worker representation. This has been achieved in New Zealand.

In a book co-authored with Kate Nicholls titled “Labour Markets in Small Open Democracies” (Palgrave MacMillan 2003) I compared labour movement responses to the double impact of globalization of production and market-oriented reforms (including labour market reform) in Australia, Chile, Ireland, New Zealand and Uruguay after 1990. We paired the cases based upon their similar location on the global production chain (Australia and Chile, New Zealand and Uruguay, with Ireland as an extra-regional outlier that served as a quasi-control variable). Among other things we found that the single most important factor that allowed the labour movement to resist attempts to reduce or break its collective power in the face of the dual threat posed by market globalization and neo-liberal inspired macroeconomic reform was ideological unity and independence from working class based political parties.

Let me rephrase that: ideological unity and independence  are the key to labour movement success in a market-driven age. Thus, Australian and Uruguayan unions, rooted in a strong blue collar ethos, ideologically unified and independent from Leftist parties, retained a considerable capacity to thwart the most noxious of labour market reform prescriptions such as enforced shopfloor pluralism. Conversely, Chilean and Kiwi unions, subordinate to the interests of Left parties and ideologically divided amongst themselves, were powerless to stop market-driven reforms, especially when those reforms were pushed by Left-centre governments they helped elect and in which former union bureaucrats held official positions. Successful betrayal of working class principles in favour of pro-capitalist reforms by the political Left in power was due, more than anything else, to the subordinate status of the union movement relative to the political Left. The political ambitions of professional politicians and union bureaucrats took precedence over the material interests of the rank and file, and the result was a relative decline in union fortunes.

There is more to the story, to include the impact of a working class debt culture and the role of popular diversions in eroding working class solidarity. But  the cautionary tale on this day is that workers need to remember that their political representatives on the Left should work for them, rather than the other way around. Contrary to Leninist principles of party vanguardism where the Party dominates the union movement, the union movement needs to control the Party if it is to be a genuine agent of working class interests. In this age of globalization in which the class “enemy” is diversified, flexible and fluid, social movement unionism and labour internationalism needs to be coupled with a reassertion of grassroots representation in union leaderships, which  in turn must lead to a reassertion of union authority within Left political parties. The stakes are simply too high for workers to allow union apparatchiks and party bosses to determine their fortunes for them.

UNITE is an example of such a new union. The NDU is known to retain a sense of responsibility to the rank and file, Beyond that, the New Zealand labour movement obeys the iron law of oligarchy, whereby the first duty of the organisation is to preserve itself, which means in practice that the interests of the agents rather than the principles is what comes first.

On this May Day, confronted by a Centre Right government after 8 years of sold-out Labour rule, it may be a time for the intellectual Left as well as workers to reflect on these issues in order to effectively confront (if not reverse) the adverse tide into which they have been headed for nearly twenty years. Or as Lenin put it: “What is to be Done?”

PS: I have previously made comments along these lines in the comment thread on Anita’s earlier post titled “Worker Organized Resistance.” For those who have read it my apologies for the overlap.

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On the Torture Memos

At long last the paper trail authorizing the use of coercive interrogation techniques, to include tortures such as water boarding ( a simulated drowning technique) has been made public. The bottom line is that it reveals that high level Bush administration officials, to include John Ashcroft (Attorney General at the time), John Yoo (Deputy Attorney General), Alberto Gonzalez (White House counsel, later Attorney General) Dick Cheney (Darth Vadar) and Condoleeza Rice (Nurse Ratched), should be indicted for criminal offenses under both US and international law. What is worse, their authorization of criminal acts–no matter how Mr. Yoo’s convoluted legal arguments may wish to paint them as something less than torture and permissible under doctrines of Executive authority anyway–flew in the face of expert opinion that torture is an unreliable method for extracting reliable intelligence and could, in fact, be counter-productive both legally and practically. There are several layers to the story, so I shall briefly run through them.

The techniques used were derived from the SERE school practices. SERE is a program run by the US military to simulate the conditions of a prisoner of war camp in which US aviators and special forces operators might find themselves. It is modeled on 1950s Chinese prison camps. Under controlled conditions, SERE operators subject US personnel to what they admit are “torture techniques” (such as water boarding) in order to teach the US personnel how to resist coercive interrogations. Thus, the Bush White House and Justice department took techniques that were capable of being overcome by determined prisoner resistance and authorized their use, without fully exploring their history or the controlled circumstances of their SERE application, on suspected jihadis whose idea of glory comes in the form of martyrdom. Not to put too fine a point on it, but that is just arse-backwards.

In fact, once SERE camp administrators heard of the (mis) application in 2002 they wrote memos to the Defence Department protesting against the use of SERE techniques. They explicitly warned about the unreliability of the confessions extracted and the risk of accidental death. These memos were ignored by the Rumsfeld cronies who ran the Pentagon at the time and were apparently never passed onto the White House and Justice Department (or if they were, they were ignored). What is important to note is that the people who pushed for the use of these techniques were Republican ideologues who had no actual experience with interrogations. Most interrogators are US military counter-intelligence personnel, who are fully aware of the legal and practical pitfalls of using torture to extract confessions. These include the unreliability of the information extracted, the uselessness of such information for strategic intelligence purposes, the problems of garnering actionable information from atomized cells in a decentralized guerrilla network like al-Qaeda–in other words, the complete disutility of using SERE-type techniques for anything other than immediate tactical purposes (if that). Since these forms of punishment were being meted out in “black sites”  thousands of miles away from the battlefields of Iraq (Abu Ghraib was more of a test case rather than a systematic application of the Yoo doctrine) and Afghanistan (although the prison at Bahgram Air Force Base outside of Kabul is reported to contain a “black site’), or in Guatanamo, even the tactical intelligence obtained was mostly unactionable. Hence, professional interrogators such as Special Forces counter-intelligence officers did not conduct the interrogations, but instead were replaced by CIA operatives or private contractors. The can of worms that opens almost defies belief.

In a nutshell:  the Bush administration authorized unproven and unreliable torture techniques against the advice of those who were best informed about the use and results of those methods, then replaced seasoned interrogators with civilians and private contractors to do the dirty work. Presumably this was to gain some of distance on any potential legal repercussions down the road. When one looks at the results of the Abu Ghraib case, where two enlisted soldiers served short jail sentences, two field officers were reprimanded and demoted and one flag rank officer demoted and  forced to retire, it easy to see how Bush administration officials believed that they would never be held responsible for anything that happened in the “black sites.”

Bush administration defenders claim that the coercive interrogation program obtained results in the form of preventing terrorist attacks but are unable or unwilling to offer a single instance of such a success. They claim that revealing the torture memos jeopardizes current and future intelligence operations and demoralizes the CIA. The answer to these claims (other than to laugh when Dick Cheney makes them), is to say 1) provide a single shred of evidence that an attack was prevented by the use of waterboarding and other forms of torture; 2) prove that any information obtained that was useful could not have been obtained using other (non-torture) techniques. Let us be clear: getting the names of other cell members, or of liaison contacts, or of the early outlines of a terrorist plot is not “actionable” intelligence that could not have been obtained by other means (say, by good human intelligence in the field). Arresting some of the Guantanamo detainees was enough to disrupt the most grandiose of al-Qaeda plots, so once their role was ascertained and their backwards linkages traced, use of torture was just vengeance, not intelligence-gathering. If the claim is going to be made that the use of terror was efficient, i.e., that it actually prevented an imminent attack, then it needs to be supported with proof. After all, the “informants” are not going anywhere so need not fear retribution and whatever intelligence penetration of terrorist networks has occurred should not be vulnerable to exposure if the truth of the matter is revealed (otherwise it is simply shoddy workmanship on the part of US intelligence and its allies).

The best way to verify such claims is to grant immunity to interrogators and lower-level CIA and military officials who oversaw coercive interrogations in  order to find out not only whether the techniques were as necessary as the Bush defenders say there were, as well as their results. More importantly, the main purpose of the grants of immunity is to determine the chain of command responsible for authorizing the use of torture, and on what grounds. The last point is important because as it stands, the Bush administration will hide under the doctrine of “plausible deniability” where subordinates get blamed for the physical acts but no evidentiary link can be conclusively made to the orders of high level officials. That deception can be countered with a “due obedience” approach whereby legal immunity to lower-ranked officials is exchanged for their testimony on who gave the orders and how did they do so (as well as how they tried to conceal those orders).  That is the key to getting indictments of Bush administration officials. John Yoo and his chief lieutenants, in particular (the former now happily ensconced as a Law Professor at UC Berkeley, of all places, the latter now anxiously realizing that private legal practice does not afford them any cover in the face of a federal indictment), need to be held to account because they apparently took an untoward interest in specific techniques and were the keenest to authorize their use. Getting these toadies to turn under the threat of imprisonment could in turn be the key to finding out what exact roles were played by Cheney, Bush and Rice in opening the Pandora’s box embedded in the torture memos.

Of course, being a cautious and pragmatic person, Barack Obama may pull the plug on any prosecutions in the interest of political security (his own and of the Democratic Party). If so, it will be up to the International Criminal Court to seek the truth of the matter, so that even those who rule a seemingly unassailable superpower realise that they too are not above basic standards of human rights and international justice. I shall not hold my breath waiting for either to happen. What is certain is that, until something dramatically different is revealed to counter what is known so far,  from a moral-ethical as well as an efficiency-practical standpoint, the US use of torture in the fight against terrorism has been a failure more than a success.

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Explaining the Opening of Diplomatic Dialogue

There has been much blather about Obama kow-towing to Hugo Chavez and Daniel Ortega at the recent Summit of the Americas conference, as well as his overtures to Cuba and Iran. At a minimum, his opponents accuse him of sending the wrong message (apparently it involves “legitimizing” governments that have already been majority elected by their own constituents), and at the worst he is labeled a “socialist” and a “traitor” to the US ideals. The drumbeat of hatred in disloyal opposition is stoked by conservative media outlets, who openly incite the ideologically inclined to physically act upon their irrational fears.

Notwithstanding that type of beat-up, and partisan idiocy aside, there is no reason to be alarmed. US broaching of diplomatic dialogue with various adversaries is a tried and true aspect of conventional diplomacy. Henry Kissinger was a major exponent of the approach, so it is no less useful for US President Obama and Secretary  Clinton to do so. 

As a proven diplomatic tactic, one that the Clinton re-treads who run Obama’s foreign policy apparatus clearly subscribe to, the offer to thaw relations between the US and Cuba, Iran and Venezuela is a “tit-for-tat” strategy designed to gauge the intentions of the opponent. Derived from game theory, it simply states that you open with a cooperative move, then replicate the opponent’s response. If the opponent responds with a cooperative gesture, then continue the iteration. If they opponent responds in an uncooperative fashion, then respond in kind, and only change when the opponent changes the tone of its response. In other words, always replicate the opponent’s move.

As the stronger actor, the US is advantaged by such a strategy, as it puts the other side in a quandary vis a vis domestic constituencies and its own rhetoric (Iran is the current case in point). If there are internal contradictions within the political structure of the opponent, such a strategy is designed to expose them.   For example, the US (under Reagan of all people!) told General Pinochet that they would prefer that he not stand for the presidency of Chile under his rigged constitutional referendum in 1988, and offered several inducements (personal as well as political) for his cooperation. He refused, so the US responded by publicly announcing that, in the interest of US-Chile relations, it would prefer that he did not assume the presidency even if he won.  The conservative coalition that backed him splintered over the offer. He consequently lost the referendum and his hand-picked successor lost the 1989 election that restored democracy to Chile. The point is that Reagan and company wanted a conservative post-authoritarian elected government untainted by the name “Pinochet.” When he showed his megalomaniac tendencies and his support base fractured, Chileans got a left-center, pro-market government instead. Win-win on all counts from a post-Reagan US perspective.

I use the Chilean example only because I am personally familiar with it, but the general point is this: a willingness to talk after periods of estrangement is a diplomatic tit-for-tat opening. It puts the ball in the opponent’s court and gives (US) politicians room to delineate their subsequent moves. Exploiting media opportunities to show “friendliness” is symbolic sop thrown out to soften the opponent’s constituency, and can only be undermined by resistance from one’s own constituency (which is why Fox News and its Republican lapdogs are barking so ferociously about it).  Watching local and international media spinmeisters weave their interpretations (however governments may succeed in controlling interpretations), both sides can measure the external and internal consequences of their respective responses, and carry on accordingly. That gives them a degree of separation from political responsibility in the event of failure.

Closer to home, the question arises: does New Zealand understand the utility of a tit-for-tat strategy when dealing with places like, say, Fiji? If not, MFAT should read the above, and the vast literature that underpins it.

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Blog Link: On Denuclearization.

In the comments thread on my earlier post about whether the US was in decline, as well as in the comments thread on Obama’s Prague speech over at kiwiblog, and during an interview on Jim Mora’s show, I found myself correcting people with regard to US strategic doctrine. That got me to thinking about Obama’s promise to pursue global denuclearization. I decided to write up my thoughts as this month’s Word from Afar column at Scoop: http://www.scoop.co.nz/stories/HL0904/S00148.htm. The bottom line is that there are many reasons to believe that the promise, while apparently sincere, has many obstacles to overcome, and not all of them are located in Iran or North Korea.

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The Parallels between Fiji and Thailand

Although it may not seem likely on the face of it, there are some significant similarities between the political situations of Fiji and Thailand. To understand why, we must start with some background and definitions. Fiji and Thailand are modern examples of praetorian societies. Prateorian societies are those in which social group and political competition occurs in non-institutionalized fashion. Rather than use mediating vehicles such as courts, parliaments, collective bargaining and the like, inter-group competition assumes direct action characteristics: street demonstrations, riots,strikes, lockouts, blockades, and outright physical conflict. This can be due to the failure of such institutions to accommodate social group and political competition within established boundaries of rules and procedure, or it can  be due to social and political group disregard for the institutions themselves. Where institutions such as parliament and the courts still function, they tend to microcosmically replicate the zero-sum approaches of the society at large: dominant groups manipulate the system to their own advantage and use it to punish their opponents. In turn, opponents attempt to wrest control of state institutions for their own gain. Compromise and toleration of difference are lost in the struggle.

The reason social praetorianism occurs is that there is not a shared majority consensus on the political “rules of the game.” This can be due to the lack of ideological consensus or disenchantment with the system as given. Either way, it spells trouble in the form of political and social instability. As a reflection of the surrounding society, this gives rise to something known as military prateorianism. Taking its name from the praetorian guard of Roman emperors, who were said to be the makers and unmakers of kings, a praetorian military emerges as the dominant political actor in socially praetorian societies by virtue of  the force of arms. It s the default option given generalized institutional failure, and as such is characterized by an internal (rather than external) security orientation, high levels of politicization and a strong interventionist streak.

There are two types of praetorian militaries: arbitrator (or mediator) and ruler. Arbitrator military praetorians assume control of government when civilian institutions break down, but do so only to re-establish the constitutional order and provide the law and order that gives civilian actors the time and space to re-establish a consensus on the rules of the political “game.” They usually enter into power via relatively peaceful coups and set themselves a non-partisan agenda as well as a specific timetable for withdrawal from government. The point of the intervention in the political system is to stop political bickering and re-establish the institutional bases of civilian rule.

Ruler military praetorians have no such limitations. Often emerging in the wake of repeated attempts at military arbitration between competing civilian groups, the ruler military has no timetable for withdrawal and a political, social and economic agenda of its own. They tend to be more violent than their arbitrator counterparts, in no small part because they see civilian society as undisciplined and chaotic and civilian politicians as venal, self-serving and corrupt. The modern archetypes were the military-bureaucratic regimes of Latin America in the 1970s, the Pinochet regime in Chile being the most notorious of them. They tend to hold power for a half decade or more in order to transform, via the use or threat of force, the basic socio-economic and political parameters of the praetorian societies in which they are located. When they withdraw, they do so under rules of the game they set down for their civilian successors.

Thailand has oscillated between periods of arbitrator and ruler military rule, interspersed with numerous failed attempts at democratic governance. In the current political crisis, the pro-royalist “yellows” (of airport blockade fame) and pro-government “blues” are vying with anti-government “reds”  (of ASEAN summit cancellation fame) to vie not so much for democracy (which is what they all claim) but for the favor of the Thai military when it finally steps back into power. The yellows are more elite and middle-class in social origin, whereas the reds are lower middle and working class in composition, so the historical odds favor the yellows (the blues are a cross-section of party loyalists of the current Prime Minister, disaffected yellows and hired thugs). But with an ailing King and more reds than yellows taking to the streets, the military may be swayed away from its traditional pro-royalist stance in the interests of securing majority support for a reformative coup. If this analysis is correct, it implies the inevitability of another Thai coup, most likely leading to a ruler military regime that embarks on a program of political reform that breaks with the partisan lines of the past. Given that it confronts a significant Muslim insurgency in the south of the country that has links to similarly-minded insurgent groups in the Philippines, the Thai military will be loathe to be drawn into politics and will only do so if the present levels of social praetorianism threaten to escalate into unacceptable levels of violence that challenge its monopoly of organized coercion within the territorial limits. It is for the Thai civilian elite to prevent this from happening, and so far they have shown no inclination to do so.

The Fijian military has repeatedly intervened in the country’s politics over the last two decades, and the Bainirarama regime is no exception. Fiji’s social praetorianism stems from the conflicts between indigenous Fijians and Indo-Fijians, a conflict that has socio-economic class as well as ethno-religios and linguisitic characteristics. Its civilian political elites have proven incapable of achieving consensus and have a strong penchant for corruption and nepotism. Thus the military sees itself as the “saviour” of Fijian society. With this latest “coup-within-a-coup,” (see Lew’s post immediately below) the Fijian military praetorians appear to be moving from an arbitrator to a ruler role, perhaps because they believe that the country is nowhere close to consensus on a reformed and reconstituted rules of the political game. I have written previously (“Bullying Fiji Part 2: The Inside Game”) some of the reasons why this may be so, but the larger point is that it appears that no amount of pressure from New Zealand or Australia will alter the conviction of Commodore Bainimarama and his colleagues in the Fijian armed forces hierarchy that it is in the country’s best interests to prevent a Thai-type scenario from developing. The UN may be able to exercise some pressure in curtailing Fijian military involvement in multinational “blue helmet” operations, but even then, with Russia and China on the Security Council, the likelihood of passing resolutions authorizing this form of sanction on Fiji for what is an internal matter is, to say the least, unlikely.

The are two dangers to ruler militaries, one specific and one general. The longer leaders of ruler militaries stay in power, the more enamored of the perks of the position they become. Whatever their good intentions at the onset, they tend to become increasingly despotic over time, losing sight of the original project in order to concentrate on their personal fortunes. That increases resentment against the regime and factionalisation within it, which essentially returns the praetorian situation to where it began. Moreover, the longer a military is in power, overseeing civilian ministries and involving itself in politics, the less its leaders are maintaining and honing their war-fighting command skills. This may not be an issue for a country without enemies, but for countries with internal or external threats, the erosion of a war-fighting capability strikes to the heart of the military raison d’etre and emboldens adversaries of all persuasions. Put another way, to remain in power is to lose war-fighting capability, and to lose war-fighting skills (including command skills) is to invite attack. This is especially true for the Thai military, but even the Fijians need to consider this given their regular deployment of troops to foreign conflict zones under UN mandate.

The final problem is that whether the military intervenes or not, and whether it does so in arbitrator or ruler guise, on-going situations of social praetorianism is the key element leading to state failure. One only need look at the recent history of Afghanistan, Somalia and Pakistan to understand the implications.

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Another American Century, or an Empire in Decline?

In my professional life  I read as a matter of course the debates about so-called US “hegemony” and whether or its “liberal” view of its role in international affairs will continue for the forseeable future (in this context “liberal” refers to the American idealist tradition of trying to re-make the world in its preferred image, whatever that may be. It is an overarching view that supercedes neo-conservative, neo-realist, constructivist or institutionalist approaches to the international engineering project). I think that the issue is worth consideration by a broader audience.

Some believe that, as the sole military superpower and core economic cog in the global system of finance, production and exchange, the US, albeit over-extended by the military adventures in Iraq and Afghanistan and beset by its financial market melt-down, remains unassailable in its position of dominance in world affairs and will continue to be so for at least the next 30-50 years. If anything, the debacles of the W. Bush administration are seen to have taught US political elites the need for a more sophisticated, broad based approach to both foreign policy and state regulation of  markets as well as domestic political representation, all of which have their crystalisation in the presidency of Barack Obama. For this view, the American capacity for self-renewal in the face of adversity is boundless, which is why it will continue to dominate world affairs in the 21st century.

Others think that the US century has past, and that the emergence of China, in particular, spells the end of its hegemonic position in the world. There is still a decade or more to run before it is eclipsed by the PRC, but in this contrary view the US’s days as the pre-eminent international actor are numbered, particularly given the emergence of other powers (India, Brazil, Russia, the EU, perhaps Australia, Iran and Turkey) and US inability to curb its consumption, dependence on fossil fuels and adherence to nationalist-conservative ideologies as the bulwark against the “socialist” tendencies of Obama and his purported ilk. Mired in arguments about gay marriage and abortion, viscerally fearful of (dark-skinned) immigration, beset by domestic “culture wars,” the US is seen as a self-absorbed, narcissistic giant about to be toppled by a global community sick and tired of its arrogance, ignorance, bullying and meddling.

I am of two minds on this. For all its military misadventures the US can still do what no other country or combination of countries can do when it comes to projecting force. Guerrilla wars may bog it down but will never threaten its core interests. Likewise, although its economy is stagnating, it still dwarfs any other regional, much less national market and still has a dramatic repercussive effect on all other markets in the global commodity chain. It may be somewhat bowed, but it is as of yet unbroken.

On the other hand, its cultural vacuousness, its myopia, its clear signs of decline on all fronts relative to a decade ago suggest that the US is, in fact, slipping from the position of superpower to that of just another major power amongst others, and that it can do nothing to prevent the international system moving from the the unipolar configuration of the immediate post-Cold War era to something that although as of yet unclear, will certainly be multi-polar in a decade or so.

Which leads me to ask three questions: 1) at the point that the US feels itself being eclipsed (should that occur), will it wage a last ditch war (or wars) to prevent that from happening, and if so, will these conflicts go nuclear (which is where the US arguably has its most decided military advantage in terms of delivery platforms as well as array of warheads)? 2) will the world be a better place in the event that it does cede its preeminent role to rising powers? 3) what is the “proper” class, environmental or otherwise “progressive” line to take on this?

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Rethinking market socialism.

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.

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A Green Neo-Realist Foreign Policy Manifesto

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.

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Blog Link–Reigning in the Spies

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.

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Clocks and Clouds

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?