Category: Democracy

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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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The Crown Gets Its Pound of Flesh.

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

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

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

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

 

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They Never Learn.

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

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

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

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

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

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

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

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

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

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ACT and National Front to announce merger.

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

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

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Against “courageous corruption” as Crown policy

It should come as no surprise that I disagree with Chris Trotter’s latest piece about the Urewera raids. Don’t get me wrong — I think his assessment of the operational capability New Zealand police and intelligence services are correct. Their actions were strategically and tactically flawed, and they seemed to hold unrealistic expectations of the task they were undertaking. But some of the judgements Chris wraps around this argument are troubling to say the very least.

Not all of them. Some are fine: we need a competent security and intelligence apparatus, and the lack is something that should be rectified. Some are nonsense: a sophisticated left-wing propaganda network (where have they been these past two electoral terms?) and sleeper cells of “sympathetic journalists” (presumably not those who are shills for the corporate élite?). Some are merely distasteful. Others, however, are downright frightening, and the worst of these is the notion that the Crown should not be bound by its own laws when prosecuting dissident citizens.

Also lacking were the reliable media “assets” so highly prized by the British security services. Individuals to whom key elements of the Crown’s case … Where, for example, was the Crown’s equivalent of Wikileaks? Clearly no one was prepared to play the role of Private Bradley Manning by dumping all the evidence denied to the Prosecution on a suitably insulated and legally untouchable website.

Let’s not forget that some of this actually happened. Elements of the Crown case actually were leaked to the public, and some suppressed material was published in daily newspapers and was the subject of (unsuccessful) contempt proceedings.* Other elements, having been retrospectively ruled in by a court despite having been collected unlawfully, were used throughout the trial to create a prejudicial atmosphere around the trial.

Given those events, the argument here is essentially that the Crown didn’t leak enough evidence; didn’t act ruthlessly enough and was too heavily burdened with scruples to secure a “right” outcome. The call for an officer of the Crown to wilfully breach the very laws they have sworn to uphold, in the name of their own individual assessment of a complex situation, is extremely concerning. Having failed to conduct their evidence-gathering operations lawfully, and having failed to persuade a judge that, in spite of that, there was still a sufficient reason to admit all the evidence, the argument here is that the Crown should have taken an extrajudicial Mulligan.

When I started writing it this piece was considerably more personalised to Chris, and how his post seems to provide final proof of his degeneration from idealistic radical to authoritarian establishment curmudgeon. The reference in the title is to his now-infamous declaration that Labour’s breach of electoral law during the 2005 election campaign was justified inasmuch as it prevented a terrible counterfactual — a National government led by Don Brash — from coming to pass. I disagree with that argument on the grounds that the integrity of the democratic system as a whole is of greater importance than any particular electoral outcome, and I disagree with his argument regarding the Urewera 4 for the same reasons: the integrity of the justice system is of greater importance than the outcome of any given case.** But I don’t want to dwell on the personal; rather than trading extensive cannonades with Chris (again), I think there’s more value in covering my reasons for holding these views in principle, leaving aside the specific merits (on which we’re never going to agree), or whether I support the principals in either case.***

The first and most obvious argument against this sort of extra-legal recourse is: be careful what you wish for. If you want the Crown to leak, to cultivate sources in the media whom they can trust to run their propaganda for them, and to resort to whatever other means they might need to secure what you think is a “right” outcome, you’d better hope you always agree with them. If you don’t, eventually you’ll find yourself on the wrong end of it. The danger of this for the ideological left in Aotearoa should need little elaboration: almost all the authoritarian cards and most of the ruthlessness in playing them are in the hands of the various factions of the ideological right, and they are constrained more by norms of conduct and the need to appear to be less ruthless than they are than by black-letter law or constitutional barriers. These norms are quite robust, but they essentially all operate on the honour system: they persist because people observe them. If you break the law in the name of the rule of law, you erode the rule of law. If you destroy the village to save the village, you still destroy the village.

This leads into the second point: changing norms of Crown conduct, or what we might call “authoritarian sclerosis”. Norms that constrain what a government, the Crown or its agents may acceptably do are becoming more lax, and have been since shortly after 9/11, when the Terrorism Suppression Act that gave rise to the current farce was hastily passed. In the past two parliamentary terms this has continued to accelerate, partly as a consequence of hysteria around — and blurring of — activism and terrorism more generally. The government, by leave of an increasingly punitive and paranoid populace, can now impose disproportionate punishment on certain offenders via the “three strikes” regime, and indefinite “civil” detention of certain offenders. The infiltration of the security and intelligence apparatus into harmless activist groups such as those that agitate for animal rights has been well-documented in recent years. It has gotten to this point despite the fact that (Urewera case aside) the two most significant threats to our national security in the past decade have been an Algerian theologist who now makes kebabs in a food hall on Karangahape Road, and three Catholic pacifists with agricultural implements. The government can now amend or suspend almost any law or enact almost any measure it likes, with immediate effect and without meaningful judicial oversight, in the service of rebuilding Christchurch. There are laws on the books that shift the burden of proof of innocence for some types of copyright infringement from the accuser to the alleged offender. On US urging, the New Zealand police recently undertook expensive, unprecedented and legally risky operations against a foreign national who had apparently committed no serious crimes against New Zealand law, and it now seems increasingly unlikely that the case will amount to anything. The government may now spend beneficiaries’ money for them. They are are moving to require DPB mothers (and their daughters!) to use long-term birth control, and to force them to work when their youngest is just one year old. The latest proposal is to force beneficiaries to vaccinate their children, in violation of the fundamental right to refuse medical treatment. These latter policies of authoritarian sclerosis disproportionately affect Māori, who are already disproportionately impacted by the state’s historical use of its power via colonialism. I could go on, but you get the point: the door to the police state is not yet open, but it is creaking ajar. Those who benefit from opening it do not need agents of the left nudging that door wider for them, but they will gratefully accept it if some are willing to do so.

This is all bad enough in itself, but as well as eroding the norms of what is acceptable, authoritarian sclerosis makes it more difficult to erect robust black-letter or constitutional safeguards against undue exercise of power by the state over its citizens, making it more likely that the norms which are being undermined are all we will be able to rely on in future. Again: be careful what you wish for.

Perhaps more important than all of that, though, is the incentive that the Mulligan creates within the organs of the Crown responsible for implementing the policies outlined above. If you make excuses for underperforming or incompetent agencies, if you cut senior officials slack when they or their subordinates fail to discharge their duties adequately, when they bring into question the good standing of their departments; if you seek to tailor laws and regulations to them rather than requiring them to work within the existing bounds of proper conduct, then you produce agencies which are dependent on special pleading and special treatment. When you select against competence, independence, resourcefulness and strategic thinking by allowing “right-thinking” loyalty and patronage to thrive, you breed pampered inbred poodles reliant on favour from political masters, rather than vigilant, independent watchdogs of civil society.

Multiple layers of dysfunction contributed to the Crown’s failure to convict on substantive charges in the Urewera 4 case. They started with the drafting of the Terrorism Suppression Act, which Solicitor-General David Collins declared “unnecessarily complex, incoherent, and as a result almost impossible to apply”. Court interpretations giving the police permission to undertake surveillance operations that were later ruled illegal also contributed. Police culture and operational capability, and a lack of both strategic and tactical awareness also contributed strongly, and Crown Law’s failure to make best use of the meagre evidence that derived from those preceding actions was merely the last in a long chain of failures.

If you want to make a system stronger, the solution is to genuinely strengthen it, making it better, by having those agencies take their lumps and learn their lessons, by punishing failure and rewarding success; by staffing it with better people, better trained and with greater strategic vision. I want an intelligence/security and police apparatus and a justice system good enough that it doesn’t need to be oppressive to be effective. One that I can trust to keep society safe, and to not persecute me while doing so. That can’t happen if we erect a scaffold of legal or extra-legal privilege beneath the sagging edifice, pretend there’s nothing wrong, and call it a win. It didn’t work for the investment banks, and it can’t work here.

L

* Chief High Court Judge Randerson and Justice Gendall found that the publication had not “caused a real risk” of prejudice, so fair enough. But they also stated that “The breaches of suppression orders and the unlawful conduct of a major news organisation and a senior newspaper editor should have resulted in their prosecution” by the Police, and that the court was “at a loss to understand why these breaches were not prosecuted.” While they raised the point that the penalties for such breaches are risibly small, it’s also hard to avoid the conclusion that the Police were simply reluctant to punish actions that might have helped their case.

** In principle, there is a time for extrajudicial action, for exercise of the reserve powers or of the almost-limitless authority of the sovereign parliament, or for rebellion by the people. Desperate times may call for such measures. These are not such times.

*** For the record: Of course, I did not support the 2005 National party. I am satisfied with the Urewera 4 verdicts since they accord with what I know about the case, though I also would not have been averse to a retrial and an opportunity for them to clear their names more forcefully.

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Putting the mandate to work

I struggle to believe the National party that read and led the public mood so well for most of the previous six years has so spectacularly lost its way. Recent months, and the past few weeks in particular, have been the government’s hardest, and only part of that is due to ministerial incompetence and bad optics. Part of it is because they have chosen policies that contradict the very narratives Key and his government have so carefully crafted.

This can’t be accidental. I think the fact that they barely won a majority despite the worst performance in a generation by the Labour party has convinced Key that this term is probably his last, and he intends to make best possible use of it. This is good strategy for them. It’s a strategy I’ve been writing about since Key was in opposition, and one that the Labour party ignored, to their detriment, until late in the last term. John Key is no mere smile-and-waver, but a man of action who, when the time is right, will act ruthlessly and decisively. He has spent his five years as leader earning the trust of the electorate, gaining a mandate, and now he intends to put that mandate to work. This country will not be the same in three years.

There are many possible examples here: privatisation of state assets is the most obvious, but is well-covered by others more informed than I am. I’ll cover three more recent topics: two are bad politics, but I can see the point to them; the last is simply a terrible idea that, if not abandoned quickly, will have profound implications for the future of New Zealand’s political discourse.

Paid parental leave

The decision to call an immediate veto on Sue Moroney’s private member’s bill extending paid parental leave was badly handled. If it were to be done, it ought to have been done immediately the bill was drawn, in an offhand way so as to frame the veto as inevitable; as it was, sufficient space was left for the idea to take root in the collective imagination of the electorate, and now the use of the veto looks anti-democratic; signalling it before it has even been debated looks doubly so, and leaves about a year for sentiment to continue to grow.

Of course, the government has the procedural right to take this action, if perhaps not the moral right to prevent Parliament from passing something that a majority of its members supports. But it chips away at the Key government’s carefully-framed appeal to being pro-middle-class, pro-family, pro-women. Unlike welfare reform, this is not an issue that only impacts people who would never vote for the National party anyway. Paid parental leave predominantly benefits middle-class (rather than working-class) families, and especially middle-class women — those who, for five years, the government has been reassuring that we are on your side. Key is personally very popular among women, and this has been central to National’s success. It looks like the government are prepared to sacrifice this on the altar of fiscal responsibility. The comparison to Barack Obama’s strategy to win a second term on the basis of strong opposition to GOP misogyny could hardly be more stark.

This is in spite of the argument on the merits: a low-cost policy that yields considerable long-term benefits of the sort the government has been anxious to create (or invent, if need be). And the arguments being levied against the scheme are particularly weird: “Is it about labour force participation, or about women spending more time with children?” Well, yes. “It’s discriminatory against non-working mothers!” Well, yes, but I don’t see any of the people making that argument supporting a Universal Motherhood Entitlement, and in fact, I distinctly remember some rhetoric about “breeding for a business” whenever such ideas are raised.

A possible reason for this bad veto call is that it foreshadows a future softening of National’s position on the topic; as Key did with the Section 59 bill, when it looks close to passing the government will signal support, in the spirit of bipartisan cooperation.

Or, maybe it’s just that they don’t care any more — so they’re unpopular, so what?

Student entitlements

The latter argument also explains the decision, announced today, to limit the availability of student allowances and require higher repayments of student loans, although not completely. This is bound to be popular with those who have forgotten (or who never experienced) how hard it was to undertake tertiary study and build a career without Daddy’s cash and connections, and those of the generations who had it all laid on for them by the taxpayers of their day. But it will be less popular among the growing ranks of young voters, and it will be less popular among the parents of those young voters, who are having to provide financial support to their kids through their 20s and in some cases into their 30s, because said kids are finding the economic dream is more rosy than the reality.

This policy is also anti-middle-class, anti-family, and anti-women: because the middle class includes most of those who can afford to (and have the social and cultural capital to) undertake tertiary study; because it places an additional burden on their parents, and because women are already disadvantaged in terms of earning power, and therefore have less ability to avoid or pay back loans. It also erodes National’s aspirational, high-productivity, catch-up-with-Australia narrative, by raising the barrier to becoming qualified to do the high-productivity jobs that such a goal requires. More crucially, it erodes National’s “money in your pocket” narrative by imposing upon borrowers a higher effective marginal tax rate — over and above the existing 10% higher effective marginal tax rate — making it harder to survive on the wages that come with those jobs.

It could be worse. They’re not reintroducing student loan interest. But it is only the first budget of the term, and the same reasoning — this is good because it allows borrowers to pay off their loans sooner, and it will provide cost savings for the government — is true in spades when you charge interest. People can already pay their loans back more quickly if they choose — it is easy to do. People don’t, because wages are low and the cost of living is high, so the government wants to force them to do so. So much for choices.

Refugees

Although I disagree with them, there is some political justification behind both these previous positions. But nothing explains the government’s decision to take a harder stance against asylum seekers. In the Australian context (and in the USA and the UK, although I know less about these), immigration and the treatment of asylum seekers is a political bonfire. This is most obvious in terms of human life and potential. Able, resourceful and motivated people are imprisoned for months or years, barely treated as humans, and allowed to become disenchanted and alienated while hostile bureaucrats decide their fate, and cynical politicians on all sides use them as ideological tokens in a dire game — before being released into society to fulfill the grim expectations that have been laid upon them. But it is also a bonfire for political capital — the more you chuck on, the brighter it burns — and for reasoned discourse. Politicians, commentators, lobbyists and hacks of all descriptions dance around this fire like deranged cultists which, in a sense, they are.

The immigration debate in Australia, though it barely deserves that name, is toxic, internecine, and intractable; it has been propagandised to the point where it is practically useless as a policy-formation tool, or as a means of gauging or guiding public sentiment. It sets light to everything it touches; people take leave of their senses and run around shrieking whatever slogans fit their lizard-brain prejudices. The word “sense” is used so often it ceases to have any meaning: all is caricature, and in keeping with this, other ordinary words also lose their value: assurances that asylum seekers will be treated “fairly” or that systems will be “efficient” would not be recognised as such by an impartial observer. Somehow, it becomes possible to simultaneously believe that the policies are targeted against “people-smugglers”, while being fully aware that the punitive costs imposed by such regimes are suffered by the smugglers’ victims. Otherwise-reasonable people resort to idiotic bourgeois framing such as “jumping the queue” — as if it’s OK to escape from political or religious persecution, if only you do so in a polite and orderly fashion. Mind the gap!

What makes it all the more stupid is that a brown tide of refugees in rusty boats is not even an issue for us: we are simply too isolated, and surrounded by waters too hostile, to be a viable destination. Unfortunately this fact will not be sufficient to prevent people from getting worked up about it, and demanding that Something Be Done. Someone on twitter recently said that anyone who could get a boatload of people here from the third world deserved a beer and our congratulations, and I couldn’t agree more. We need people with the degree of daring, toughness and pioneer spirit to make such a journey, and qualities such as these were once most highly prized.

This policy also undercuts National’s mythology about itself, most assiduously cultivated over the past year in preparation for the sale of the Crafar farms and other assets — of New Zealand as a land of opportunity, welcoming to outsiders and open for business. National have been swift to condemn any deviation from this line as xenophobic, and yet this is somehow different. It is worse than a solution in search of a problem — it is a cure that is far more harmful than its ailment.

What’s more, while I can see the underlying political reasoning behind the two other policies I’ve discussed here, I can’t see the reasoning for this one. Most likely it is an attempt to cultivate some love in redneck-talkback land; to shore up slipping sentiment among the culturally-conservative base that National used to own. But even in this it is misguided: this is not a debate that does any major party any good. It is an opportunity for extremists to grandstand, to pander to society’s most regressive elements. It crowds out meaningful discussion of other matters, it makes reason and compromise impossible, and what’s worst: it never dies. We saw a glimpse of this with the Ahmed Zaoui case; by fearmongering about boatloads of Chinese en route from Darwin on the basis of just one isolated case National runs the risk of admitting this sort of idiocy to the national conversation permanently.

And that might be this government’s legacy. The former two topics, while they will change New Zealand’s politics in meaningful ways, are essentially part of the normal partisan ebb and flow. Asset sales is much bigger; other topics, like primary and secondary education reform and the proposal to cap government expenditure will also have longer-term and more profound impacts. The National government has a mandate, and they are using it while they can, in the knowledge that you can’t take it with you when you go. That is understandable, if perhaps regrettable.

But to use such a mandate to permanently poison New Zealand’s discourse, willingly driving it towards a permanent state of cultural war is a different sort of politics altogether — deeper, more ancient, harder to control, and much more dangerous. I hope I’m wrong.

L

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Fortune-cookie strategy and the Labour leadership

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

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

Attitude of No Attitude

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

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

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

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

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

The Sovereign and the General

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

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

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

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

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

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

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

L

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

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Labour’s new Tui Ad.

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

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

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

Yeah Right.

 

 

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Accumulation versus Distribution.

The bottom line of any political economy resolves around the question of accumulation versus distribution. Productive activity that generates surpluses (profits) can be accumulated by those who control the means of production (workers or capitalists), or can be distributed throughout the larger community in which production is located. In capitalist system decisions about accumulation and distribution are done by capitalists. Workers organizations fight or bargain for better distribution of profits. Capitalists would prefer to accumulate for their own consumption. Because production is essential for the material standards of everyone, in democracies capitalists and workers negotiate the proper ratio of profits saved to profits distributed. Once distribution has occurred (via wages, benefits and the like) the saved part of profit is re-invested or “taken” by capitalists (owners) for personal use. Both sides adopt minimax negotiating strategies by making maximum claims on the preferred ratio, then settling for a mutually acceptable minimum. By doing so neither wages or profit-taking rise too recklessly or out of proportion to productive gains or inflation, as that would lead to inefficiencies and potential social unrest.

Or so the system is supposed to work. Depending on relative political balances and the specific location of a given productive sector in the capitalist world cycle at any specific moment, workers or capitalists may have structural and political advantages to play in their favor. Workers will attempt to maximize distribution in the form of job security and wage and benefit gains; capitalists will attempt to maximize accumulation by rolling back worker’s redistributive gains.

For the last twenty-five years logics of accumulation and profit-taking have dominated macroeconomic thought. Workers have steadily seen their distributive gains eliminated. As the process has deepened capitalists have pushed not only to reduce the material aspects of the distributive process. Sensing a favorable economic and political environment in places like New Zealand, they are launching attacks on the rights to collectively organize in defense of distributive stakes or goals. Capitalists well understand that for people to have economic rights they must have political rights.  The right to organize collectively is a political right. Reduce that right and previously held economic rights are more easily curtailed or eliminated. The more the concept of economic rights based on distribution is pushed towards a minimalist definition (encapsulated in the saying “you are lucky to have a job”), the more workers will limit their distributive demands in the quest for basic subsistence. The more that they do so the more working class internal competition will further push down the overall wage bill and increase job insecurity. The process of “casualisation” is the result of that trend, with “labor flexibilisation” being the managerial jargon used to describe employment precariousness.

Today in New Zealand the scales are tipped in favor of accumulation over distribution. The political and economic elite (including many in the Labour Party leadership) overtly side with the logics of accumulation argued by capitalists. They accept the reasoning that in the current global economic moment distribution to workers is contrary to future growth. Thus they accept that not only worker’s distributive demands but their political rights must be curtailed in order for economic benefit to occur. Of course, that benefit accrues to capitalists rather than workers, and if the low rates of re-investment in many productive sectors is anything to go by, profit-taking out of accumulated surpluses have been very good for capitalists indeed.

None of this is particularly new or surprising, even if recent labor conflicts had led to commentary about an impending class war in New Zealand, among other places. What is happening today is just the logical conclusion of a process of market-driven accumulation that began in the 1980s and which is reaching deep into the foundations of modern political economies today. The purpose is to forever privilege accumulation over distribution, and to ensure the political conditions in which workers can no longer challenge that logic or have a say in fixing the “equilibrium” ratio of accumulation to distribution.

Such a system has long been noticed and understood by the materialist school of class conflict. It is called the Asiatic Mode of Production, which relies on super-exploitation of human labor for accumulation gains. Given that New Zealand’s original market ideologues borrowed some of their policy prescriptions from the Chicago School of monetarist economics (later conceptually distorted in the word neoliberalism) as widely applied by capitalist authoritarians in the 1970s and 1980s, it seems  that their heirs have borrowed from the Chinese or Singaporean models, which are also heavily reliant on authoritarian political and social controls. This shift in preferred macroeconomic models makes perfect sense when we consider the move, shared by both major parties, to focus NZ’s diplomatic and trade relations on Asia and the Middle East, where democratic “niceties” are in short supply and where capitalists are largely unencumbered by human rights, much less labor rights or worker’s substantive rights to a share of the benefits of production.

The modern Asiatic model is as ruthlessly efficient as its predecessors, but is also based on a downwards redefinition of the concepts of economic and political rights that is generally considered anathema to democratic values (which in the labor market are enshrined in International Labor Organization conventions, now under siege in NZ and elsewhere). It would seem that in this particular market-driven moment, authoritarian capitalist reasoning prevails, accumulation is the sine qua non of macroeconomic policy, and the notion of egalitarianism as the basis for stable social order reflected in a fair ratio of accumulation to distribution has been abandoned in favor of the all-mightly profit-taking “bottom line.”

That is the state of play in New Zealand today.

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In an age of increased international interdependence, NZ shrinks diplomatically.

The lunatics have taken over the asylum. Not only has National adopted an incoherent foreign policy in which it attempts to straddle the fence between China and the US by tying its trade fortunes to the former and its security fortunes to the latter (something that it thinks is hedging but which is untenable given the looming strategic conflict between the two great powers). It has now decided that it can dispense with 305 MFAT employees, including diplomatic staff assigned abroad (as it closes embassies and consulates). This, at a time when global interdependence is increasing and the range of international relations is getting more rather than less complex.

Diplomacy and its support infrastructure are good value for money because the service it provides helps NZ’s position in the world. For the cost of diplomatic and home office salaries, travel, conferencing, housing (abroad) and foreign aid programs, NZ can avoid military entanglements (the costs of which are exponentially higher than diplomatic chit chat), engage in negotiations on matters of national interest (for example, non-proliferation, arms control and climate change), and generally steer a safe course in the turbulent seas of the post 9-11 world. To do so requires personnel with varied skill sets, so reducing the complement of personnel dedicated to diplomatic functions reduces NZ’s capacity to engage its foreign interlocutors on a broad range of issues. Numbers do matter here.

The market zealots of the National razor gang want to cut all perceived public sector fat regardless of consequence. This is like choosing a skinny marathoner to run an Antarctic ice race instead of a distance runner with a sturdier (read thicker) constitution: the short term look may seem impressive, but once the choice is placed into real context it is bound to suffer, likely fail and in the end be more costly to maintain. We have already seen the domestic consequences of such logics. Now we will see them in our international affairs.

Add to this the privatization of NZAID programs in which fostering business opportunities is given priority over human developmental assistance, and what you have is foreign policy debacles in the making.

Of course, the National government may be doing this because it already knows that it is going to lose the next election and does not care if it saddles Labour (or more likely a successor Labour/Green government) with the costs of the diplomatic re-build after McCully and co. have reduced NZ’s diplomatic footprint to that of a child in the sand. But that, in a phrase, captures what National is all about when it comes to foreign policy: a child playing an adult’s game without regard to long-term consequence.

Eventual ratification of the much hyped Trans-Pacific Partnership, should it occur, will not save National from its folly and will in fact exacerbate the tensions between the Chinese and the US. That in turn will have very negative consequences for NZ since it is increasingly dependent on China for trade and on the US/OZ for security. This, with less people employing the skills to smooth over the differences between the two contradictory positions.

Couple the above with the erosion of morale and skill sets within the NZDF as a result of similar cost-cutting measures, and what is left is a shell of NZ’s former international presence. Sometimes the bottom line is not measured in monetary terms but in terms of competence, reputation and committed presence. This is particularly true for international relations, where the belief that NZ punches above its weight in international affairs is being put paid to by National’s incompetence and dogmatism.

In my opinion National has put ideological partisanship ahead of the national interest. If the proposed cuts are more than a bargaining chip, then the only questions left are who will profit from National’s increased privatization and out-sourcing of the country’s international relations and who will pay the price? I suggest that in response to the latter, all Kiwis will pay a price for this decision, including the private interests who may short term profit from National’s grossly myopic and self-interested approach to foreign affairs staffing. Let us remember: most developed states consider foreign policy making and implementation to be an essential and universal function of government not susceptible to narrow partisan logics, precisely because of the long-term common need for diplomatic continuity in a difficult world.