Category: comparative politics

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Political Fratricide.

In light of recent events involving the NZ Labour Party, it is worth pondering the phenomenon known as political fratricide and its sub-set, party fratricide.

Political fratricide is the tearing apart of a political movement or organization due to internecine differences amongst political allies or the ideologically kindred. It is fratricidal in that erstwhile brothers and sisters in political arms turn on each other over differences of ideas, strategy and tactics to the point that the movement can no longer sustain itself as a coherent political entity. The original movement is purged of dissenters by the dominant, and often increasingly authoritarian faction. Clear examples are provided by a myriad array of Left movements that fracture and split over ideological hair-splitting and matters of praxis. This weakens their broader appeal, segments them into marginal factions, and therefore diminishes their overall import in the political debates of the day. The more intense and acrimonious the political fratricide, the less likely a movement will recover its original shape and play an effective role in mainstream politics. In most instances that means permanent marginalization.

Party fratricide is a sub-set of this phenomenon. It is characterized by increasing cleavages, factionalization and fragmentation within political parties over any number of issues, including issues of leadership. Party fratricide results in the elimination or purging of losing factions. It is due to either of two reasons. One is irreconcilable differences within the Party on core beliefs. In this instance the very nature of the Party as a political entity becomes the subject of angry internal debate to the point that it can no longer function as a coherent whole. That forces splits and defections by discontented Party members that ultimately results in the formation of new Party off-shoots. As with the case of political movements, this dilutes the electoral strength of the original Party, which may or may not be replaced by one of its off-shoots as the preferred vehicle for the marshaling of a given political cause or belief system. Although the original Party may survive, its core belief structure will be modified by the defections and emergence of ideological competitors holding different conceptualizations of the original beliefs that once bound them together. That has the overall effect of diluting support for the belief system itself because the increased number of disputed interpretations resultant from the fratricidal process muddles popular interpretations of what the “pure” belief  really is.

The second cause of Party fratricide is an absence of core values. In this instance, which often is seen in “catch-all” parties that seek to appeal to the widest array of interests possible, the absence of an ideological core leads to the narrow pursuit of segmented interests and policy implementation by a variety of internal factions. That in turn sets the stage for tactical opportunism, be it in the trading of favors via pork-barreling or log-rolling, or in regular shifting of support for policy positions or party factions based upon self-interest and the contemporary dynamics of the Party at any given moment. People of ideological principle finds themselves isolated and outflanked by the tactically astute who are less rooted in ideological conviction. The more this occurs the more likely that bitter personal antipathies develop within the Party as ambitious individuals joust for leadership roles in an evolving informal or subterranean contest that parallels the formal rules of Party leadership contestation and selection. Since there is no one central belief system to which all adhere, the field is left open for cunning tactical opportunists to hold sway in internal party debates.

This appears to be what has happened to the Republican Party in the US, and it shows signs  of occurring in the Australian and British Labor/Labour parties. It seems to be what happened to ACT. These parties contest power not out of a core belief system but because of the platform of temporally shared policy interests that they represent. Although that may suffice to win power or office, it also is a source of constant internal tension that has the potential to explode into outright conflict should personal animosities or policy differences turn irreconcilable.

Party fratricide does not necessarily spell the death of the Party but is a sign not only of deep division within it, but of fundamental weakness. After all, if a Party cannot unite around a common set of objectives, leaders or beliefs in the face of a coherent and well-organized opposition, then it is less a political Party than an amalgam of sectoral interests forced together by political circumstance and shallow ideological affinity.

All of this is quite obvious. The question for the day is whether a Party that is exhibiting signs of fratricide can pull back and regroup in a manner that retains its coherence and effectiveness as a political interlocutor. One way may be to rehabilitate, resurrect or recruit again those that have lost favor or been relegated by the internecine battles (many a political Laxarus has been returned to the fray in NZ and elsewhere). There are a number of other means for re-constituting a coherent political platform and leadership cadre  that enjoy the support of the Party membership as a whole. Thus the solution set to the problem may be as varied as it is difficult, but for one NZ political party at least, it is also absolutely necessary.

 

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A surfeit of services.

My yearly sojourns to the US provide a regular opportunity to garner a snapshot of the state of the union, at least from my limited perspective. This year I returned to my old stomping grounds in the desert southwest and to the home away from home in South Florida. After a wet monsoon season the desert was lush and the 360 degree skies saturated with cumulus, cirrus and stratus cloud. It was great to hear Norteno music and Spanglish spoken in the street.

My son joined my partner and I for a trip to the old mining town of Bisbee, where we stayed at the haunted Copper Queen (est. circa 1880) and had a long night on the town that ended up in some biker/metalhead dive bar. It was great. I highly recommend the Arizona desert to New Zealanders interested in a dramatic contrast in landscapes and Western cultures.

South Florida has been less pleasant. There is a palpable tension in the air marked by hostile attitudes and unbelievably aggressive, to the point of criminally reckless, driving. The region is known for its fast pace and shallow materialism, but in this trip there is something darker about it. Some of this can be attributed to the election campaign, in which some of the local attack ads are truly astounding in their ferocity and disregard for decency (the issue is large: one-third of the US Senate, the entire US House of Representatives, and most local offices are in play). There is a buffoon Republican named Alan West running for the US Senate, and his ads make the Swiftboat and Willie Horton attack ads look tame. He says nothing about what he proposes and spends most of his time defaming his Democrat opponent. Seeing that Romney is set to lose the presidential race, the right wing talkback and television outlets have ratcheted up the hysteria and vitriol to the point that even John Stewart or Stephen Colbert cannot parody them adequately. In a word, the place is nuts.

This condition of political anomie may be compounding the sense of frustration and anger felt by an increasingly divided–the word “polarized” does not do justice to the chasm between the US right and left–polity that more than anything else is diffident in its regard for politics. Both the Republican and Democratic conventions were not as well attended and not as widely viewed by TV audiences as in previous years, and it appears that the election abstention rate is going to be very high this year. People appear to be cynical, bitter and lacking in hope for the future regardless of who wins in November. All in all, this is the sorriest state of mind I have found the US to be in since my move to NZ fifteen years ago.

That is the backdrop to the subject of this post. As readers will know, the focus of the 2012 US election begins and ends with the economy. Platitudes are proffered and panaceas are prescribed. Words like “competitiveness” and “innovation” are bandied about like lollies. But there seems to be a fundamental misunderstanding of a root cause of the American economic malaise: its reliance on services.

The US is a country dominated by the service sector rather than true productive enterprise. Think of the variety of services now on offer: wealth and asset managers; financial advisors; PR and other “communications strategists;” personal trainers; life coaches (of which there are half a million in the US); pain management specialists (aka pill doctors); landscapers; floral designers; escorts; private alarm and security companies; fishing, hunting and tour guides; real estate agents; internet and in-store movie suppliers; credit card purveyors; nail and hair “artists;” wedding planners; a zillion types of mental health counselors and ambulance chasing lawyers; insurers; car, cat and dog groomers; dog walkers; bird, cat, dog and horse whisperers; DJs; car valets; (for-profit) drug and alcohol rehabbers; tennis instructors; beauty consultants; fashion stylists; liposuction specialists; motivational speakers; management and risk consultants; self-help gurus; personal assistants and agents, accountants; home delivery services; website designers–the list is as varied as it is endless. While one might argue that all retail sales are a service, my point is that in the US the extent of service provision is on its way to infinite, and this infinite progression dominates its economy.

The basic problem of reliance on services as the core of economic activity is that making money through facilitation is not equivalent to being productive. Nor is working hard synonymous with productivity. Americans work the longest hours and take the shortest vacations of all OECD countries. By that standard they should be light-years ahead of the democratic capitalist world in terms of real productivity. But they are not. That is because hard work and income earned in services does not, in the larger scheme of things, add real value to productivity. It may make the national quality of life better, but it does not advance the overall condition of the productive apparatus. It is the economic equivalent of silver–it is nice and attractive, very malleable, easy to buy, wear and replace, but is no substitute for the economic iron required to build and progress a nation.

What is noteworthy about the US service sector is that, at over 75 percent and growing, it is steadily occupying a bigger and bigger percentage of the national GDP (agriculture is less than 2 percent and manufacturing is at 20 percent). The creative genius involved in the proliferation of services is matched by its relentless rent-seeking: in South Florida television ads are dominated by ambulance chasers (who prefer the term “personal injury lawyers”), pill-pushers and geriatric care providers who offer relief and compensation for a myriad of ills previously unheard of or for which personal responsibility used to suffice.

The majority of US college graduates, be they from two or four year colleges, receive degrees in areas other than science or engineering (business, education and liberal arts degrees are the majority of those granted in the US). Since the bulk of undergraduates do not go on to graduate school, this leaves a labor pool full of people who cannot actually produce or add value to anything other than by virtue of their slick talk and quick uptake on the job. Since most people coming out of US universities and colleges are neither particularly articulate or quick on the uptake, their default option is to join the legion of personal service providers.

No that all services are of the silver variety. Some of these are important, such as electricians, plumbers, carpenters, doctors, firefighters, police and lifeguards (I shall defer from elaborating on the public versus private aspects of the service sector, but note that what are considered public services are basically considered to be core functions of government, many of which are being privatized and downsized in the current fiscal environment). Many services are linked via supply chains to the manufacturing and research sectors. Others, such as the information technology services that spawned Google, Facebook and Twitter, create wealth but do not always really produce anything tangible or contributory to the value-added project (which in part explains the lukewarm stock market reaction to the Facebook public stock float). The vast majority of US services are, needless to say, even less contributory to the national productive apparatus.

The critical and deleterious aspect of the services domination of the US economy is that it is moving the country away from the production of real value added assets, much of which is increasingly monopolized in terms of ownership anyway. Add to that the overwhelming influence of the financial service sector, and what is left is a country that buys more than it makes (and what it makes are increasingly capital goods as much as consumer durables and non-durables), and in which people increasingly use services rather than do things or rely on themselves.

The social division of labor created by service sector dominance in the US appears to produce two distinct cultural characteristics. First–and this is very evident in South Florida and a subject that I have addressed in previous posts–is a culture of blame-assignment and responsibility-shifting where nobody is personally accountable for the consequences of their actions. Even hardened criminals commonly use the excuse that their teachers, counselors and psychiatrists failed them in the lead-up to their crimes, and in many instances this suffices to mitigate their culpability and reduce their sentences. They are not alone in this. In fact, there is an entire service industry comprised of counselors, insurers and lawyers that profits from shifting blame and responsibility, criminal or not.

The second aspect is the increasing compartmentalization and personalization of service work, which in turn produces an erosion of horizontal solidarities brought about by common insertion in the productive process. Much of the service sector is characterized by individual entrepreneurial or material pursuits. The individualization of service work, often aided by stay-at-home technologies that facilitate the rendering of such services, removes the associational and emotive ties that are part of the working experience in mass productive enterprise. This atomizes and alienates individuals as social subjects, as their material fortunes no longer depend on common identifications and sense of purpose (which occurs whether the workforce is organized or not precisely because it is a collective enterprise).

Social group associations, service group size and individual immersion in non-work related collective undertakings such as sports and churches mitigate against a complete return to survivalist alienation, but they do not fully overcome the dissociative effects of the nature of service provision. The effect of this is to reduce the ties that bind people together, which helps explain the turn to shifting blame and responsibility onto others.

Needless to say, I am only extrapolating from what I am seeing in the US during my limited time here. I recognize that generalizations are fraught and speculation based on fraught and fragmentary generalizations are to be suspected. So take this appraisal as an opinion, nothing more. Moreover, the US remains the largest national economy in the world, the largest trading nation, and the largest manufacturing economy. Its information technology, robotics, telecommunications and aerospace industries are world leaders. Its automobile and construction sectors are on the rebound. It is by no means weak in spite of what I have outlined above.

Even so, the trend is disturbing (at least for those with an interest in the US). For small countries not intent on projecting power or devoid of natural and human resources, reliance on services as the mainstay of the economy is acceptable if not advisable. Competitive advantage in services may counterweight a lack of comparative advantage in productive resources.

However, it seems to me that if a large, militarily aggressive country with a global reach relies on services as its engine of economic growth rather than on value-added production, than it will find it increasingly difficult to hold the its position over time. I might be wrong and, like (but better than) the USSR, the US can continue to ride on the production associated with an immense military-industrial corporate complex that spins off technological innovation and civilian applications as a matter of course even as the overall presence of value-added manufacturing as a component of GDP decreases. But if that is the case, it seems a risky proposition for sustained growth and global prominence given that an increasing percentage of the inputs to that type of production are derived from external rather than internal sources.

Meanwhile the life coaches continue to facilitate personal self-realization, realtors hustle properties, lawyers litigate and asset managers channel money made from services into other services. Wall Street and Washington both believe that ongoing reliance on services for economic growth is sustainable and desirable. In broad economic terms, that is like equating a merry-go-round with a wheel. It is that merry-go-round that Obama, Romney and other US politicians are trying to fix.

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Blog Link: Australia as a different type of BRIC.

In spite of some serious dysfunctionalities in its party politics and potential problems with its economic growth model (heavily dependent on mineral exports), Australia is well on its way to becoming a regional great power. In this regard it shares macro-characteristics with three of the four “BRICs:” Brazil, India and Russia (the PRC has surpassed regional great power status and is no longer, in my opinion, appropriately categorized with the others). Although Australians may prefer not be grouped with the others for a variety of reasons, I take the notion of “rising middle power” as the starting point for a comparative analysis of Australia as a different type of BRIC.

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Blog Link: Deconstructing New Zealand Foreign Policy.

A recent canvass of members of the diplomatic community resident in Wellington had as a common theme the apparent incoherence of contemporary New Zealand foreign policy. That prompted me to attempt to deconstruct the major features of New Zealand foreign policy during the last three decades and to offer some explanations as to why they no longer hold in the measure that they once did. You can find the explanation here.

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Managing Policy Fade.

A conversation with Lew and Selwyn Manning prompted this rumination. It is not meant as a comprehensive organizational analysis but instead as food for thought, using the case of the UN and Fiji after the 2006 coup to outline a phenomenon known as “policy fade.”

Deployment of Fijian soldiers and police as UN peacekeepers after the 2006 military coup in that country is a good example of policy fade, in this case undertaken by the UN. Initial calls for and threats of Fijian suspension from all UN peacekeeping operations never materialized and Fijian involvement in UN-sanctioned armed multilateral operations increased after 2007. Suspension from international organizations such as the Commonwealth and Pacific Island Forum (which included prohibitions on Fiji participation in PIF-sanctioned multilateral armed peacekeeping operations), the halting of foreign aid from the EU and Asian Development Bank, and travel sanctions on officials in the Bainimarama government by Australia and New Zealand were not matched by the UN when it came to peacekeeping. Instead, the UN’s course of action has been marked by non-enforcement of the measures called for by the original policy statements made immediately before and following the 2006 military coup. Along with other circumventions, the UN policy fade allowed the Fijian military to defy the sanctions regime imposed upon it.

Policy fade is the process of putting distance on an initial policy position. There are several ways to back away. Here the focus is not on policy retreats or complete back downs imposed by adverse externalities or changes of mind on the part of policy-makers.  Instead, the emphasis is on types of managed policy fade initiated from within a political organization.  It can accompany policy softening, which is the modification of policy along its margins without removing the original intent.  Managed policy fade is about instituting a controlled move away from failed, unpopular, embarrassing or non-enforceable policy without losing credibility (or face, or honor).

There are several ways with which to manage policy fade. The issue can be ignored over time so that it disappears from the public eye. It can be re-defined so as to diminish its visibility, divert attention away from it or to give credence to a change in approach.  It can be deferred and/or delayed so as to encourage historical amnesia.  The process of policy fade can involve combinations of these approaches. In all cases the intent is to remove the policy issue from public scrutiny in order to eventually abandon or change the original approach.

The UN used the delay-and-defer approach to the subject of Fiji’s peacekeeping role. Kofi Annan’s originally strong language on the consequences of the coup was qualified by his successor Ban ki-moon.  Annan made his statements in October 2006, prior to the coup and during the last three months of his term as Secretary General. Confronted with a lack of votes in the Security Council in favor of a resolution ordering Fiji out of peacekeeping duties and not wanting to risk aggravating rifts in the General Assembly over the issue very early in his term, Ban delayed following up on the promises of Annan and others to that effect. He also deferred the issue to his underlings.

In April 2007 Ban called for a study of the impact a peacekeeping suspension would have on Fijian society as well as the regime. As is well known, service in UN peacekeeping operations is a major source of pride for the Fijian military, which can hone professional skills and maintain espirit d’corps while contributing to domestic stability via remittances from its soldiers abroad. The study was designed to identify the tangible costs of a suspension beyond diplomatic isolation. Its results have never been disclosed. Meanwhile Fijian peacekeepers continued to serve in UN missions and at present constitute the largest source of soldiers for the UN peacekeeping mission in Iraq. It appears that the UN decided the benefits of having Fiji continue to be a contributor to peacekeeping operations outweighed the illegality of its military regime, and simply never admitted to that calculation in public.

The delay-and-defer approach relies on news cycles and diminishing public interest to be effective. If the media and/or public focus continues to bring attention to the issues involved, then policy fade becomes more difficult to implement. On the other hand the press of events means that media and public attention spans are often limited, making the policy fade process possible once the glare of scrutiny is off.

Since 2006 the UN’s and global public attention has shifted elsewhere. That reduced the importance of a possible suspension of Fijian peacekeepers as a UN policy priority. The subject of suspending Fiji from participating in UN peacekeeping operations was consequently dropped from public statements and a quiet accommodation was made with the Fijian authorities that sees Fijian military and police continuing to serve in blue helmet missions abroad (the use of Fijian military and ex-military by private security companies was not effected in any event).  When 36th Parallel Assessments recently questioned the UN about the ongoing presence of Fijian troops in UN peacekeeping missions despite the original talk about suspension, the response was to admit that no suspension was authorized and decisions on Fijian participation in peacekeeping operations are taken on a case-by-case basis.

Although it contravenes the intent of the sanctions regime imposed by other international organizations and individual countries, continued Fijian participation in UN peacekeeping operations may be seen as a way of showing goodwill towards, and exercising some diplomatic leverage on, the Bainimarama government as it moves towards re-scheduled elections in 2014. In fact, an increase in Fijian troop contributions to UN missions in 2011-12 coincides with the suspension of the state of emergency in place in Fiji since 2009 and commencement of the voter registration and constitutional consultation process leading up to the 2014 vote.

After 2007 Australia and New Zealand remained silent on the issue of Fijian troops on UN peacekeeping missions even though it demonstrates the futility of their bilateral sanctions against the military regime. Instead, they also have engaged in policy fade, in this case of the “ignore it and it will go away” variety. Knowing that there are more important issues to address and not willing to enter into a public argument with the UN peacekeeping division or be embarrassed in the Security Council and General Assembly when both are contemplating bids for temporary membership on it, Australia and New Zealand cast a blind eye on the continued use of Fijian peacekeepers by the UN even though in some cases (Sinai, Syria) their soldiers serve side by side with Fijians.

In both countries public disinterest or ignorance of the state of play surrounding the bilateral sanctions regime has helped governments to ignore the issue in public while concentrating on other priority policy areas and allowing relations with Fiji to be handled quietly, both directly and in multinational fora.

Given the diplomatic lifeline thrown to the Fijian regime by the UN with regards to its involvement in peacekeeping, the overall sanctions regime imposed on it was porous. However, it also provided a stick to complement the UN carrot, and the uncertainty of the UN case-by-case approach to Fijian peacekeeping ensured that the Bainimarama government could not rest entirely easy with regards to its diplomatic status or that of its blue-helmeted troops in the field.

The task now for Australia, New Zealand and other international agencies is to gracefully move away from their respective hardline stances towards something more accommodating of the Fijian regime. This can be tied to the gradual (and continued) opening of the Fijian political process as the date of elections draws closer, and could involve incremental lifting of sanctions and resumption of fuller diplomatic relations or practical engagement with the Fijian state on the part of those currently employing sanctions against it. The US, Russia, India and PRC already give full bilateral diplomatic recognition to Fiji, so large international organizations can take the lead in following their example in return for continued progress towards the 2014 ballot.  Should that happen, then Australia and New Zealand can re-consider their stance on travel sanctions with some decorum.

However it is couched, the ineffectiveness of the international sanctions regime in the face of the UN policy fade on Fijian peacekeepers made necessary policy fade on the part of other actors. The fade process on the original international sanctions policy is transiting to the redefining phase, something that should be evident in policy pronouncements on Fiji by the international sanctions coalition over the next year.

 

A different version of the essay appears as an analytic brief at 36th-parallel.com

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On Liminality.

For some time I have been pondering the issue of liminality. It is a term that appears in cultural studies and all sorts of post-modern rubbish posing as theory, but in this instance it resonates with me and seems to accurately depict a social condition that is increasingly evident in a multi-globalized world. “Liminality” refers to state of intermediacy or even indeterminacy. It is a condition of being caught in betwixt and in between, of being in two or more places at once but not being fully settled in any one of them. It is different from and more than hybridity, which is a combination rather than a condition, although hybridity can lead to liminality in some instances (say, a mixed race person moving between the different class and cultural backgrounds of parents).

In my frame of reference liminality is the condition where a person who has lived for significant periods of time in more than one country finds him/herself saddled with affections and aversions from each, leading to overlapping loyalties, and more importantly, a sense of relativism that destroys any notions of cultural absolutes or ideals. For example, the more the individual lives in different places, the more it seems to me that it is hard to get seriously nationalistic about any one of them. Even such small issues as sports loyalty can be a complicated matter. I, for example, follow Argentina in soccer because I grew up there. I root for Barcelona because it has a genius Argentine forward and a very Argentine style of play, but support Portugal as a national side in Europe because I lived in Lisbon for while and watched several of their players live as part of the experience. I support the ABs in rugby but switch allegiances to the Pumas when the play each other. I support the US in things like baseball and basketball, but then again tend to root for Greece in basketball because I lived in Athens for a while and the Greeks are crazy about b-ball, and cannot help but cheer for any small Latin American country when they play against the US in either sport (and truth be told, Cuba, the Dominican Republic and Venezuela have great baseball traditions and Argentina and Brazil have beaten the US in international basketball competition. Yay for them!).

Although I am not sure that they are sports rather than games, I have taken an interest in and support Singapore in table tennis and badminton because, well, I lived in Singapore for a few years and that is the only thing that they do well when it comes to international “athletic” competition (truth be told the national sport in Singapore is shopping, but they do not award medals for that). When not rooting for Argentina my default options are Chile (where my family lived for several years and where I subsequently conducted field research), Uruguay (where my family vacationed for extended periods during our time in Argentina and where I conducted field research in later years) and Brazil (where I lived episodically in the 1980s).

The sports angle is a minor one. The more serious issue is that as more and more people travel and settle across international borders, the more liminal they become. In many instances this occurs on top of an urban-rural disjuncture, whereby people transplanted from one to the other find themselves (at least initially) alienated and out of synch with the rhythm of life in their new locale. Think of a Laotian peasant or Somali refugee arriving and settling in Auckland. As with most new migrants, particularly those that are involuntarily re-settled, the pull of nostalgia for what was culturally lost very often overwhelms the urge to integrate and accept new values, mores and customs. It is only subsequent native-born generations that feel grounded in the new culture, but even they are often caught in betwixt and in between. One solution, particularly if the native population is hostile to new settlers, is to retreat in parochial defense of the “old” country or way of life. But even that eventually gives way to mixed feelings of loyalty and obligation to the old and the new.

Liminality occurs at the sub-national as well as the international level, both of which have been impacted by the revolution in transportation and telecommunications. There are consequently more and more people living in a liminal condition or state of mind. It therefore seems to me that “liminality” should be included in policy debates about things such as immigration, although to do that correctly we will have to wrestle the term away from the cultural relativists and other intellectual poseurs who think that trafficking in big words is equivalent to practicable and useful social research.

I am no expert on the topic so mention all of this merely as a subjective reflection. It is prompted by the July 4 celebrations in the US and comments by friends back there about how the US is the greatest country on earth etc. Yet most of these folk have never lived outside the States for an extended period of time, so how would they know? From my perspective it certainly has many merits and offers many opportunities, but in the end that is as much due to the its continental size and relative insulation as it is to the particularities of its people, politics and culture. Mind you, I feel certainly loyalty to the US as the country of my birth and whose government I once served, where my children and siblings reside, but that competes with my childhood loyalty to Argentina and current loyalty to NZ (which is where I expect to end my days. That raises an interesting sidebar: how many people actually think about the country or place that they would prefer to die in? I can say one thing for sure. Among other unhappy places, Afghanistan is not on the top of my list, with all due respect to the Afghans that I have known).

Who is to say that Canada, Costa Rica, Norway, Estonia, Turkey, Bhutan or–the goddess forbid–Australia is not the “greatest” country? How is universal “greatness” as a nation defined? One would have had to have lived in many places and have done many different things in order to make such a distinction (I do not mention Aotearoa simply because we all know that it is Godzone). And if one did in fact live in many places doing many different things, it is more likely that s/he would be at a loss to pick one single place as being above all of the rest in every respect. That is what liminality can do to a person–it makes it impossible to speak about culture or nationality in absolute or definitive terms. I say this even though I am fully aware of the canard that states that “there is no place like home,” whereby expats use the experience of living abroad to reaffirm their loyalty to their nation of origin (my parents did this for most of their lives). That may be true in some but not all instances, and I would argue that the more countries one lives in the less able s/he is to make such an assertion.

In any event, I write this as a person born in the US, raised and subsequently lived as an adult in Argentina and other Latin American as well as European and SE Asian countries, who resides permanently in NZ while continuing to travel to Australia, the US and elsewhere for professional and personal reasons. That pretty much defines my liminality, which I am not entirely sure is a bad thing.

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Blog Link: Conceptualizing Foreign Aid as an Instrument of Policy.

Developmental aid is a major component of foreign policy and international relations in the South Pacific. As such, its purpose and effects are much debated. Taking as a starting point the recent visit to Auckland by a EU delegation traveling to announce a major initiative with regards to climate change in the region, I try to conceptualize developmental aid, broadly defined, as an instrument of policy. In doing so I point to different types of aid based on motivation, the interests involved, and some of the consequences of its provision over the long-term.

http://36th-parallel.com/2012/06/foreign-aid-instrument-policy/

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

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

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

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

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

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

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

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

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

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

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

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

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Assad Channels Videla.

Bashar Assad has likened the civil war in Syria to a surgeon performing messy emergency surgery. Much blood is spilled but it is in the best interest of the patient’s survival that it do so. In this case the patient is purportedly Syria (but in actuality the Alawite regime), and the surgery is required because of the gangrenous actions of foreign-backed “terrorists” and extremists.

That comment brought back some unhappy memories. On March 24, 1976 the military dictatorship known as the “Proceso de Reorganizacion Nacional” (Process of National Reorganization) was installed in Argentina. Over the next seven years it killed over 30,000 people and tortured, imprisoned and exiled at least that many more. It refined the concept of “disappearing” people without a trace (although it was later revealed that many of the disappeared were sedated and dumped from aircraft over the South Atlantic). It was a very bad moment in Argentine history, and the psychological and social scars of that sorry time are still evident to this day.

Assad’s surgical analogy struck an unpleasant chord with me because that is exactly the language used by the “Proceso” to justify its actions. In one of its first proclamations the Junta spoke of the need to rid Argentina of the “malignancies” of subversion, economic instability, social disorder and moral decay, and that in order to do so it would have to “extirpate without anesthesia” the cancers afflicting the Argentine body politic (on this see “Acta fijando el proposito y los objectivos basicos para el Proceso de Reorganizacion Nacional,” Republica Argentina, Boletin Oficial, 29 March 1976 and Republica Argentina, Documentos basicos y bases politicas de las fuerzas armadas para el Proceso de Reorganizacion Nacional. Buenos Aires: Junta Militar de la Nacion, 1980). It seems that when it comes to “organic” parallels between the state and society, Arab and Argentine dictators think alike.

It might behoove Mr. Assad to remember the fate of his Argentine counterparts. Their regime collapsed under the double-barreled weight of popular unrest and foreign conflict (the Falklands/Malvinas War, which was staged by the Junta as a diversion from its internal problems). The generals who commanded that regime were all eventually tried and convicted of crimes against humanity and sentenced to lengthy prison terms, where several have died. Argentine justice certainly was not swift or completely fair, but in the end the self-professed “surgeons” were found guilty of homicidal malpractice rather than lauded as the triage medics of the country.

Assad has that double-barreled weight now resting upon his regime. His conflict is internal rather than external, but the involvement of external actors is substantial and not limited to UN proclamations, jihadist infiltration or covert military assistance to the Syrian Free Army. He is therefore well on the path to following his Argentine counterparts down the road to collapse and overthrow, and it is now more a question of whether he will die in a prison cell or on the street rather than if he will fall. After all, once the dictator starts talking about emergency surgery on the body politic, it may be the case that he is the worst tumor of them all.