Category: Economy

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Unfettered free trade is like having unprotected sex with strangers.

Like a sexual addict, New Zealand has a dark obsession with free trade. The obsession may speak to a larger issue rather than the value of trade per se. That issue may be the pathology of NZ political-economic elites fantasising about trade benefits rather than the real benefits to their constituents.

 Whatever the case, the number of free trade agreements (FTAs) NZ has negotiated is high for a small democracy (9–bilaterals with the PRC, Australia,  Malaysia, Thailand,  Singapore and South Korea, multilaterals with the Transpacific Partnership (P4) with Brunei, Chile and Singapore, and with ASEAN/Australia, as well as a regional agreement with the Gulf Cooperation Council (GCC) grouping several Arabian peninsular states). It has negotiations underway with India and Hong Kong  (bilaterally), on the Anti-Counterfeiting Trade Agreement (ACTA),  and with Australia, the US, Vietnam and Peru on joining the P4 in an expanded TPP. Further FTA negotiations with ASEAN and other partners are ongoing. NZ is an ardent champion of the virtues of free (unprotected) trade and open commercial borders in international fora such as the WTO.  In other words, if this were a sex survey, New Zealand is  promiscuous in its  approach to free trade.

To further the analogy, the pursuit of free trade under the National government is the macroeconomic equivalent of cruising for sex. It focuses on the immediate satisfaction of new market penetration and commodity exchange rather than on the potentially negative consequences of the liaison. Phrased politely as foreign market opening and reciprocal investment, the thrust of NZ’s FTAs gives much less regard to the “after-entry” (or “morning after”) consequences of sequentially engaging multiple partners with different strategic objectives born of varying cultural backgrounds, governance, resource bases and historical legacies. There is, in a word, a lack of prophylaxis when it comes to NZ’s approach to free trade.

FTAs are essentially tariff reduction, currency, investment and border control agreements. They are commonly referred to as “market opening” pacts. The focus is on the conditions and terms of entry. Although consensual, oftentimes these are largely determined by the interests of larger, dominant partners, particularly in bilateral agreements. But multilateral FTAs are like group sex–there is more room for individual manuever within the general rules of engagement, but the group dynamic may force the weaker partners to submit to advances that they may normally prefer to avoid (to bring things back to the subject, such as on issues like unorganised child or wimin’s labour, or open pit mining in conservation zones).

In either event, less concern  is placed in the rush to secure new FTAs on the environmental, labor market, gender, immigration, indigenous and security implications of trade opening. These are considered to be secondary consequences that are best dealt with based upon local market conditions.  It is the terms of the initial engagement that matters, not the morning-after effects.

This is what makes the indiscriminate New Zealand approach to free trade all the more alarming. Of  its new partners, many are authoritarian and most are bigger in size, with larger and more variegated economies of scale. The terms of NZ’s engagement with such partners, while legally equal, often leave it in a subordinate position where it is forced to accept practices that are unacceptable or contrary to community standards at home. In fact, if the analogy holds, then many of the NZ’s trade partners should have name suppression, if only becauseof their authoritarianism and systematic abuse of human rights at home.

Nor is NZs penetration of foreign markets pain-free. As Fonterra has learned, after-entry issues in foreign markets such as product quality control are not inconsequential. In fact, as far as the brand is concerned, the after-entry consequences of rapid market opening can often be devastating.

It is not just the brand that can be damaged by the rush to market opening.  Scholars have already begun to point to the negative consequences for the environment, indigenious groups, and labour rights when FTAs are negotiated without regard to after-entry consequences. I am currently working on a book chapter that highlights the security implications of the above-mentioned expanded TPP, to include its criminal and military-strategic and intelligence flow-on effects. 

For NZ, the longer term situation is not good. For example, even though NZ has opened its borders to increased aviation and martime-borne tourism, it has not increased the number of MAF or Customs dog-handlers to handle the increased volumes of tourist traffic in places such as Rotorua, Tauranga and Opua (all of the environmental security and drugs searchers have to be driven from Auckland) even though the volume of imported commercial goods has increased exponentiallyas well. This leaves gaping holes in bio-security as well as in narcotics interdiction in commercial ports of entry (think of an increase of thousands of containers worth of commercial goods entering NZ per year without the ability to scrutinise even a quarter of them). Nor have Police, Immigration or Customs resources been increased with an eye towards countering organized crime using newly opened trade borders as conduits for a bit of market penetration of their own (note recent reports of Chinese students serving as drug couriers–the PRC is the main source of the precursor chemicals for the manufacture of P). In addition, lax financial regulations and corporate registration laws contribute to making NZ an increasingly attractive destination  for money laundering ventures and business fronts originating in Asia. Again, no thought has apprently been given to these types of issues when FTAs are negotiated. 

In spite of the clear dangers of unprotected free trade, here defined as FTAs without negotiated after-entry provisos, the National government, Labour, and most minor parties believe in the mantra that the rising tide of free trade raises all economic boats. But, to continue the physical analogy, such an unprotected surge of free trade also brings with it potentially unhealthy (some might say deviant)  after-entry consequences when it comes to the socio-economic fabric of NZ society. That is why prophylaxis is necessary at the point of negotiations, not later.

John Key and Tim Groser may think of themselves as “players” on the world trading scene,  but they may be cruising for commercial love in all the wrong places, at least in terms of their choice of partners and neglect of morning- after effects.  Ill-conceived and lacking in consideration of longer-term impact beyond short-term aggregate growth, such an approach downplays overall societal welfare in favour of commerical and political elite satisfaction.  That may be exciting for the latter, but like victims of a night on the town gone wrong, it has the potential to leave the NZ political economy battered, brusied, postrate, supine and hopeless in the face of the manipulations of trade partners who seemed nice at first and promised many things, but whose subsequent behaviour proved less noble.

PS: remember, this post is about the potential negative effects of free trade. I realise that the cruising/unprotected sex analogy is a bit over the top, but I could not resist given how postively orgasmic the Key government waxes about free trade (sorry!).

PPS: In Wellington now. Went from 26 degrees and 99% humidity in AK to horizontal drizzle and wind at 15 degrees. Not quite dressed for it coming from my SE Asian redoubt. Looking forward to meeting Lew and (hopefully) seeing Anita again.

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Incoherence about national education standards

There’s incoherence in the government’s rollout of the new national educational standards regime which goes beyond the unreasonable use of statistics I noted yesterday, and it’s illustrated most crisply in the differing approaches taken to mainstream schools and kura kaupapa Māori. Simply put, standards are being implemented on a trial basis (audio link) in KKM, and without a trial process in mainstream schools. The problem is not about a lack of background: Anne Tolley made this clear last year in response to a Parliamentary question from Te Ururoa Flavell, saying that there existed “a significantly robust research basis from which to develop national standards in kura kaupapa Māori.”

The mainstream education sector — without whose buy-in any such implementation will certainly fail — are understandably furious since their main problem with national standards has not been one of principle so much as a lack of confidence in the details of any regime’s implementation and an understandable desire to have input into a system which will fundamentally change the nature of their work. A substantial part of the reason they are suspicious is because National spent its nine (long) years in opposition taking every possible opportunity to deride the education sector as Labour toadies and teachers as walk-sock-and-cardigan-wearing fat-bottomed do-nothings, and as NZ Principal’s Federation president Ernie Buutveld says in the interview above, the sector’s suspicions have been confirmed: national standards is less about measuring students and more about measuring teachers, with a punitive view to demonising them in the eyes of parents. This is the political motive: driving parents to vote for National rather than for Labour. I suppose the reasoning goes something like, if teachers are well-respected and regarded and generally vote Labour, Labour will be similarly well-respected and regarded amongst parents. Or something like that.

The problem with measuring teachers on the performance of their students, however, (and I speak as a former teacher), is the same as the problem of judging a football team by its fans. A team doesn’t choose its fans, and schools or teachers don’t choose their students. There is only a certain extent to which a given teacher, however inspired or well-meaning, can influence the social, cultural, economic, health and other factors which feed into educational success; even more so when there exists a strictly results-focused teaching culture, rather than an improvement and engagement-focused culture, as there certainly will once standards are bedded in.

This is not to say that KKM should be denied their national standards trial process. But that is what National should be saying, in order to be consistent. Because the stated reason a similar trial has been repeatedly denied the mainstream education sector is urgency — the sense that we must move swiftly and make the changes so that not one more child will be left behind. This sort of incoherence in policy and rhetoric (or, as it is in this case, between policy and rhetoric) always yields flaws which can and should be exploited, and here’s the flaw in this. One of the two following statements is necessarily true:

  • The Government’s justification for rolling out national standards in mainstream schools without a trial period (urgency) is false and misleading, and accordingly the government’s motives in rolling out the trial period are different to their stated motives; or
  • The Government doesn’t care about kura kaupapa Māori students or schools, and doesn’t consider their educational standards a matter of urgency or substantial importance.

So, Anne Tolley and John Key, which is it?

L

Update: Sage wisdom on this topic from Gordon Campbell.

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Dreams and realities

This morning at The Standard, vto* questioned how anyone can figure that the TVNZ7 ad featuring Bill English could be political advertising, since it doesn’t contain any baldly partisan political statements.

What is party political about it? Nobody has come with anything specific to support the contention – merely, “it looks political” “I know political when I see it” etc etc. Specifics folks, specifics.

Although I tend to think vto is either being purposefully obdurate or is just simply oblivious, it’s a fair question. Since in my experience he is usually genuinely puzzled rather than just shilling for the blues,** I undertook to do an analysis of the clip for his edification (or ridicule). As I said in the comments thread, you don’t create this sort of thing by accident:

This is a form which has been finely tuned and crafted over half a century to serve a very specific set of purposes — it’s a complex and very challenging medium where every frame, every word, every note is loaded up with as much subtle meaning as possible. With apologies to Tolkien, one does not just walk into political advertising.

A few basics of political discourse, first. While in the case of video, a text is made up of sounds and images, this is different from the ‘words’ and ‘pictures’ vto talks about. There is also a temporal dimension to video: editing, mise-en-scene and lighting changes, camera and focal movement, etc. which I’ll lump in with ‘image’ for these purposes. Likewise, most of the sound is spoken words, but there is also music, which is non-trivial in terms of meaning. The point is that nothing is in there by accident. When you have a limited budget and the requirement to work within a 45 second ad slot, nothing is optional or discretionary.

Given that there are images and sounds, and that they’re all there for a reason, it should be clear that there’s more to analyse than just the words and pictures, and so an apparent absence of political meaning in the words and pictures doesn’t mean the text lacks political meaning; it just means that it’s not overt (or not overt to everyone). The meaning lurks in how the various parts of the text hang together as much as in the ‘words’ and ‘pictures’ themselves. This, also, is purposeful: people are natively suspicious of political messages, and it helps to be able to communicate them via means which people aren’t accustomed to analysing closely. People are very well accustomed to interpreting political speech (‘words’), but much less accustomed to parsing video texts and the subtexts which emerge when multiple texts are intercut with each other in a dense and coordinated fashion. This is what makes video such a strong medium for political communication; why Eisenstein and Riefenstahl and Capra were given such prominent positions in their respective regimes, and why practically every US presidential election since 1960 has been predicted by which candidate’s TV coverage was the stronger.

The clip in question presents a dual narrative which appeals simultaneously to peoples’ cautious, empirical, rational side and to their hopeful, nationalistic, emotional side in order to produce a sense of hope. It is composed of two separate video texts intercut: one featuring footage of Bill English, Minister of Finance and Deputy Prime Minister; and the second of Bill English, kiwi bloke. The topic is the same, and the visual edit minimises the visual difference between the two narratives, while the voice remains constant throughout. This continuity of voice leads us to interpret the statements of Serious Bill and Chipper Bill as if they are uttered by the same person (which they are) and in the same role and context (which they certainly are not). The context is provided by the image, not the sound, and demonstrates that one person can (and should) hold both opinions simultaneously although the relationship between the two narratives is arguable. Of course, people can hold both views simultaneously (though whether they should is another matter).

The first, Serious Bill, establishes the Minister of Finance at a respectful social distance in a dark suit (with cut-ins to tie and face); the Sky Tower and the bright lights of NZ’s commercial capital in the background, a composition chosen to provide authority and credibility. This is a fairly soft form of the tycoon shot, a wealthy man overlooking his glistening domain. He speaks calmly and in technical terms, playing NZ’s economic problems with a straight bat. He uses the first person plural (“we”) throughout in order to include the audience in his statements. He looks the camera (audience) square in the face, talking directly to us.

The second, Chipper Bill, is established in a full-frame headshot, cut from a full-frame headshot of Serious Bill. This is what I mean by ‘minimising the visual distance’ between the Two Bills. He starts with “Y’know”, a commonplace employed more often to tell people what they (should) know than to genuinely appeal to shared common knowledge. This also marks a distinction between the complex, technical language used by Serious Bill and the colloquial, understandable terms and sentiments which follow. It is a relief to hear someone speaking ‘plain english’ after all that techno-jargon, right? Especially when he’s saying something we want to hear: good news about how “we can beat those Aussies”, after the bad news which Serious Bill was talking about, how our we’ve been “underperforming” when compared to them.

Chipper Bill — smiling and personable, an approachable everyman in a patriotically black polo shirt, continues to be intercut speaking in exhortative platitudes about how we just need to “back ourselves” (cut briefly to Chipper Bill gazing into the middle distance) and “apply some old-fashioned Kiwi can-do”, and so on, in response to Serious Bill’s authoritative but somewhat dry and gloomy facts. This use of “old-fashioned” is a hint of a dig at the previous government, the one responsible for “underperforming”; this dig is made a bit more explicit with the enthusiastic “we’re nearly through the tough times and things are looking up” — just leave it to good old National and everything will be well, not like that other lot, who were opposed to everything traditional, right?

The two narratives describe the reality of how things are (described by Serious Bill) and a dream of how things could be (described by Chipper Bill), as the music gradually rises in the background. The clincher, and the factor which makes this more a political advertisement than anything else, is that Bill English is the connection between the two narratives: if you accept the narrative line, he is the key to turning the dream into reality. This is essentially an overarching ‘hope’ narrative, a most powerful sort in troubled times, as Barack Obama realised, and as expressed by Drew Westen in the first chapter of his book The Political Brain, which opens with an analysis of two contrasting video advertisements for Democrat presidential candidates: one successful, for the Clinton campaign, and one unsuccessful, for the Kerry campaign. What was Clinton’s narrative? Hope.***

This ad was not about policy. Its sole purpose was to begin creating a set of positive associations to him and narrative about the Man from Hope — framed, from start to finish, in terms of hope and the American Dream. […] The ad created in viewers a vivid, multisensory network of associations — associations not only to the word hope but to the image of Hope in small-town America in an era gone by.

This “Two Bills” ad creates a similar hope narrative around the putative Kiwi Dream of “beating the Aussies” with “good old Kiwi can-do”. How could anyone not like that?

Just so you’re not starved of policy analysis, there are unstated, non-trivial National party assumptions about what’s important all through the ad too. The prime one among these is a focus on financial metrics (GDP growth, productivity growth) to the exclusion of other considerations. A Labour ad along these lines might have emphasised a balance between economic and environmental and other outcomes such as quality of life — the fact that this ad mentions no other metrics than wealth is not value-neutral or void of political meaning: it demonstrates the writer’s policy priorities and direction. As well as that, the “beating the Aussies” narrative is a core plank of the government’s current policy of “closing the gap” — it’s not policy-neutral either, but is a function of the government’s own preferences and their political strategy of measuring themselves against previous governments on metrics which favour them. And hang on a minute: are we really “through the tough times”, and are things really “looking up”? Depends who you ask; this is a matter of opinion and legitimate professional dispute among Those Who Know About Such Things, it’s not a slam-dunk even if the Finance Minister says so: after all, it’s his job to say so. And will “old-fashioned Kiwi can-do” on its own really be sufficient to bridge the significant productivity and GDP growth gaps between NZ and Australia? What the hell is “old-fashioned Kiwi can-do” anyhow, and if it were that easy, why haven’t we done it all before? The entire narrative is constructed of politically-charged assumptions, but it is formed in such a way as to discourage the audience from thinking too hard about it.

There’s one other thing, too: Plain English is Bill’s newsletter to his constituents, and it looks like the similarities don’t end there. It was a catch-cry of his 2002 election campaign. Perhaps if he’d had this production team working on that campaign he’d have won, or at least done well enough to prevent Don Brash from taking over.

So that’s a reasonably thorough teasing out of the political content of this seemingly-innocuous 45-second commercial. As I said in the comment thread at The Standard, the only thing more absurd than this ad getting made and screened with a straight face is Eric Kearley employing the Lebowski Defence when challenged on the fact that the ad quacks very much like a propaganda duck. Regardless of whether it was bought and paid for, as the more conspiratorial commentators think, or whether the use of the form was simply a (very successful) ploy to garner attention, it’s idiotic to pretend that this isn’t political advertising in function. While I tend to find industrial explanations for apparent media bias more compelling than political explanations, people like Kearley obstinately denying the bleeding obvious doesn’t make it especially easy to keep doing so.

L

* Stands for ‘Vote Them Out’, as I recall.
** What else this implies about vto I leave as an exercise to the reader :)
*** It helped that Bill Clinton was from the town of Hope, Arkansas.

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Hōiho trading

So much of Labour and the economic left’s criticism of the māori party and its conduct in government with National is little more than the howling of self-interested Pākehā angry that the natives aren’t comporting themselves in the approved fashion. But in this case, criticism of the māori party’s support for National’s amended ETS is entirely justified — not because it goes against the principles of the labour and environmentalist movements, but because it goes against the māori party’s own stated principles and demonstrated political strategy. Idiot/Savant has a thorough fisking of the differences.

Whereas previous criticisms have mostly been leveled at the māori party for trading away tactical gains against strategic gains (going into government with National; refusing to quit any time National capitalised on its majority; etc), this decision sacrifices the strategic for the tactical, swapping a few relatively token benefits to some industry sectors in which Māori have strong interests and to low-income people among whom Māori are strongly represented, against a huge intergenerational moral hazard by which the general populace will subsidise emitters, robbing the general tax fund of revenue which could otherwise have been channeled into targeted poverty relief and social services, of which Māori are among the most significant consumers. The upshot must surely be the Foreshore and Seabed; but this seems to me a very heavy price to pay for a concession which seemed likely to go ahead in any case.

While the māori party is not — and Māori are not — ‘environmentalists’ in the western conservation-for-conservation’s-own-sake sense, a core plank of their political and cultural identity is rooted in their own kind of environmentalism, and by acceding to an ETS which does not enforce carbon limitations on industry and society, they have put this role in jeopardy and severely weakened their brand and alliances.

There is a silver lining in this for Labour and the Greens, however. The māori party’s deal has prevented Labour from succumbing to a similarly tempting compromise on the ETS, and it can retain its relatively high moral ground. Labour and the Greens now have a clear path on which they can campaign for the 2011 and future elections, a definite identity around which to orient their policies, and the real possibility of significant strengthening of the ETS in the future. Where this leaves the māori party I’m not sure; no doubt those who shout ‘kupapa!’ will be keen to consign them to the annals of history, but I don’t think redemption is impossible — especially if the māori party shepherds the FSA review through to its desired conclusion, it will remain a political force too significant to be ignored.

L

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NZ’s Joe the Plumber?

Bruce the Engineer.

Turns out he and his wife have a lifestyle block in John Key’s well-heeled electorate and two rental properties, and the whole story was a plant by Phil Goff. This was a very poor choice of poster boy: nobody with a lifestyle block and two investment properties is entitled to cry poverty. Even if their cashflow situation means they’ll be doing it hard until Bruce finds another job, arguing that they should be entitled to full benefit plays right into the hands of those who argue Labour is all about middle-class welfare or, in this case, welfare for property-speculator millionaires. There is no way Labour can claim to speak to genuine need while they nail their colours to cases like this, people far better off than most of those who are Labour’s nominal constituency. What of all those who don’t have two houses and a lifestyle block to fall back upon? Honestly, it’s insulting.

Labour, if you’re going to try to cynically manipulate public opinion, can you at least make a halfway-competent job of it? Poor Bruce and Jo have been used as propaganda pieces by Phil Goff, and badly so. They lose, Labour loses, NZ loses.

Edit: Shorter Lew: “There are plenty of people for whom Labour could be going into bat during the current recession. These ain’t them.”

L

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Brogressives and fauxgressives

Chris Trotter doesn’t want to debate, which is good, because there’s really no point to it – his arguments and mine are at cross purposes because we differ on a key point: whether support for independent self-determination for power minorities is necessary to call oneself a ‘progressive’. Chris doesn’t think so. As far as he’s concerned, Māori self-determination is a nice idea, so long as it doesn’t try to take a different line to the honkey Marxist agenda which he misdefines as ‘progressivism’. If that were the case, then this “well-meaning but misguided political naïf” would need to turn in his cloth cap. But progressivism hasn’t ever just been about the white working classes dictating the political agenda to other power minorities; it’s never held that the needs of all power minorities be crushed by the worker solidarity agenda. That’s why my previous post was directed at the “Marxist left”, not at the progressive movement. I’m ok with not being part of that clique – comfortable, as Danyl Mclauchlan said, having no ideological flaws that a few decades digging canals in Fiordland wouldn’t set straight.

The progressive movement has been about power minorities supporting each others’ political agendas against those who would keep political power in the hands of patrician elites. Diversity is a political strategy. You should support peoples’ right to make their own political decisions, even if you disagree with those decisions, because if you don’t you could find support for the right to make your own political decisions to be somewhat lacking. So while Chris is playing the No True Scotsman game, I can play, too: if you don’t support the rights of indigenous people to determine their own political destiny, you’re not a progressive. More in the nature of a slogan: if you’re not a brogressive, you’re a fauxgressive.*

Until we can come to some sort of sense on this matter there’s no point in continuing the discussion. Chris, by his repeated denial and denigration of indigenous rights to political self-determination, criticising the independence of the Greens from Labour, and in denying that women ought to be free from sexual predation as of right, seems well on his way to becoming one of those conservative baby-boomers which are the subject of his latest column. For shame.

Edit: I withdraw and apologise for the redacted paragraph above, as a response to Chris’ justified complaints about my conduct here. This wasn’t up to the KP standard, and I’m sorry for that. I’ve replied to Chris in the comments of his thread on the hope of more meaningful engagement.

Meanwhile, Relic and Imperial Zeppelin have posted good responses to my last post on this matter, which are worth responding to and which I think neatly illustrate the problems I have with this sell-out / kupapa / brown tories / haters & wreckers line of argument.

Imperial Zeppelin, first:

Where do the Maori and Labour Parties come into the equation? Both these political entities may well claim to advocate on class and/or race issues, but do they?
[…]
It would appear reasonable to expand on Marty Mars’ statement and contend simply that race and class issues (along with all the others) will not be resolved as long as you leave the resolution to others; never mind others who are beholden to interests inimical to class, race, gender and environmental interests.

I both agree and disagree, but this gets to the nub of the matter: power minorities need to drive their own political agendas. My view is that while neither the Labour party nor the māori party perfectly represent their nominal constituencies, they are nevertheless best-placed to advocate for those constituencies. Nobody else can do it for them; the degree of their success or failure will or ought to be be reflected in their electoral support.

Relic:

how about a quote from V.I. Lenin to back up the bus a little-“politics are the concentrated expression of economics”

This is precisely what’s wrong with the Marxist approach. Going back to a higher authority than Lenin, I consider politics to be the ‘master science’ – the discipline which governs which other disciplines are considered worthwhile. Far from being just economics, it encompasses religion, morality, ethics, war, epistemology, identity, history, actual science and more to boot. Politics is how people organise themselves in society. There are many referents of political identity, and it is for each individual to choose their own primary identity. Marxists who say it’s only economics tend to be those who, ironically, care mostly about money and the power which it brings.

The Maori Party is led by the likes of Prof. Winiata and embodies the hierarchical inclinations of certain tribal elites.

And the Labour party doesn’t embody the hierarchical inclinations of academic and public servant elites? Let’s not pretend that any party in parliament is actually a workers’ party – in the democratic systems we have, credible political vehicles are by necessity elite-dominated. So all you’re saying is that you prefer elites of one flavour to those of another.

The capitalists via their primary parliamentary representatives National/ACT recognise the need to embrace the large and growing Maori economic sector, unlikely to be sold off overseas at this stage, and needing to be diverted from potential co-operative (socialistic) forms asap. Yes, there is the parliamentary numbers game but it is not the main prize as I see it. Getting Maori to embrace the colonisers kaupapa-private property relations, is.

This is a much better point, but (like other criticisms of the māori party, it rests on two false premises: first, that Māori don’t know what’s best for Māori; and second, that Labour are substantially better.

Second issue first. With the Foreshore and Seabed Act, Labour did more damage to Māori access to resources, mana whenua status, equality before the law and collective resource control than any government of any colour had done for the better part of a century. The passage of that act was the most recent shot fired in the war of colonialism, which told Māori that they were not entitled to due process and redress in law, as other citizens were; that they had no right to even try to assert mana whenua rights to historic resources no matter how strong their claim; and that hapū-level ownership was not an option. And all this from their historic allies, whom Māori had supported without fail for generations.

It’s not that Labour had no choice, as they and their apologists claim – they had the choice of losing and retaining their principles and the loyalty of Māori, or winning without either. They chose the former, before the gauntlet was properly thrown down at Orewa, and subjugated tino rangatiratanga to political expedience, forcing Māori to once again lie back and think of Ingarangi in service of the ‘greater good’ which served the Pākehā majority. That was Labour’s decision to make, but the expectation that there would be no consequences was simply absurd, and speaks to the level of entitlement Labour felt it had to Māori loyalty. The māori party, more than anything else, was founded to demonstrate that government needs to earn the support of Māori, rather than enjoy it as of right, use it, and abuse it as convenience dicatates. So far it is doing that, though whether it will do so in the long term remains to be seen.

Many objections to the māori party decision to side with National focus solely on the losses, ignoring the possibility of gains or arguing that National have no intention of fulfilling any of their undertakings. It is true that National’s policies will probably inflict more acute economic harm on Māori in the short term, but there’s more to intergenerational indigenous politics than small-scale tactical gains and losses in economics, and the calculus is that short-term losses may be worth it for long-term gains.

The integrity of the tino rangatiratanga movement is just such a strategic gain. The first big test of the māori party’s strategy comes this Tuesday, when the Foreshore and Seabed Act review panel reports its recommendations to Chris Finlayson. Further tests will come in the next year as National and Labour begin to bid in earnest for the brown vote, supposing Labour begins to campaign at all. Even if the māori party is turfed out off parliament in 2011, if they have raised the importance and profile of kaupapa Māori politics such that no party in the future believes they can act as Labour did in 2004, they will have succeeded.

As for the argument that Labour policies help Māori because most Māori are working class and Labour policies help working class people, therefore all Māori should. This is simply a reverse ‘rising tide lifts all boats’ argument. The point is that Māori have different needs and, under the Treaty framework, different entitlements to the rest of the working class. A political movement which treats Māori simply as brown proles ignores this historical reality, and is an insult to all those who have fought for recognition and redress.

On to the first issue. After generations of relying on Pākehā elites to redress the abuses of the land wars and following, a group of Māori leaders have taken it upon themselves to develop a principled strategy to find redress by their own means. Some Māori have supported them, and if they fail to make progress toward that redress, or do so by sacrificing other, more important things (such as the kaupapa of collective ownership) then the party will (or should) lose that support. This is fundamentally the point: the decision as to whether the calculus described above is worthwhile for Māori is for Māori to make, not for “well-meaning but misguided” honkeys who want to co-opt the politics of tino rangatiratanga as part of their worker solidarity movement.

Self-determination is a fundamental component of liberty. If you approve of political self-determination only for those movements which serve your own political ends, you’re little better than the Iranian clerics, for whom any political candidate is acceptable, as long as they’re a Shi’a fundamentalist. Let a thousand political agendas bloom; that is the liberal way.

L

* With thanks to Melissa McEwan, whose blog is well and truly open for business again.

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Reading between the choices of spin

When National leaked and then announced the home insulation fund they had a choice about how to spin it. I can easily think of four options they had (I’m sure there are others):

  1. Environmental/climate-change: home insulation reduces energy consumption, thus reducing the amount of generation required, thus reducing the use of thermal generation (read thermal as burning stuff :) which in turn reduces CO2 emissions which in turn reduces the effects of climate change. 
  2. Environmental/sustainability/primary-production/innovation: NZ businesses are doing some really interesting work in sustainable home insulation using NZ’s primary products rather than imports. A nice photo op with a company making home insulation from wool and voilà, the story is about innovation, sustainability and government support for agriculture and primary production in a recession.
  3. Health/education/social-development: Insulated warm dry homes improve family health and child education outcomes by reducing sickness and deafness. Photo op: Minister visits family in recently insulated home, since insulation went in the kids are much more healthy and doing much better at school, little Moana might even trundle over to the Minister with a picture book and read it to him. PR gold – government cares for families and kiddies!
  4. Traditional-infrastructure/building sector: Insulating homes means the existing builders, insulators and contractors will have more work and will weather the recession.

National chose option 4 – why? It’s not the best PR option and it’s not the most on message, every other option had clear weathering the recession messages plus something forward looking and visionary. Instead they chose the staid dull message which appeals only to the traditional infrastructure industries.

The only explanation I could come up with is that traditional infrastructure is where National’s traditional funders and backers have come from, perhaps they wasted a golden opportunity for positive spin for a little old fashioned pay back?

This post was, in part, inspired by Zetetic’s post about National’s current lack of attention to the concerns of female voters. A couple of  their options would’ve been great options if they cared about women voters, instead they chose the spin best suited for the Fletcher Building board.

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Deconstructing Democracy: Introduction.

Anita’s post below on raising democratic children was meaningful to me because I was primarily raised in authoritarian societies, was involved in anti-authoritarian activities in my youth and first got to vote when I arrived in the US to attend university (under Nixon!). Later as a single parent I worked hard to raise my kids in what I liked to call a “triangular” social democratic family (Dad and two kids with a reasonably equitable sharing of household rights and responsibilities given our respective life positions). Although we do not agree on many issues, I can confidently say that they are both politically engaged.

I spent a large part of the Reagan years living on and off in Latin America studying processes of authoritarian demise and democratic (re)constitution, spent the early 1990s working in and out of the US government, then decided to emigrate to NZ once the kids were old enough to fend for themselves. In NZ I initially found one of the two freest places I have lived in (along with Uruguay), but then unhappily watched the corrosion of democratic values in both political and civil society over the next decade. I am now again involuntarily living under yet another authoritarian regime (not quite as murderous as the ones of my youth), and having written previously about the dilemmas of democratic consolidation in post-authoritarian societies, I have time to reflect from afar on what the term means to me, with specific reference to NZ.  Once I finish the current book project I am working on, I intend to write a book about the subject of democracy in transitional societies, and to that purpose have begun to deconstruct my thought on what democracy involves.

Over the next few blog posts I will sketch out my preliminary thoughts on the issue (these are too long for one post). The reason I do so is not so much as a self-indulgent attempt to see what the thoughts look like on paper, but because I think that sometimes people who have lived their entire lives in a democratic society lose sight of what that really means and what it involves. Perhaps it takes someone who has experience with both dictatorial and democratic systems to cast fresh light on the latter. That is my purpose here.

To begin with, we must separate “democracy” into its procedural and substantive dimensions. Procedural democracy refers to the means (procedures) by which political power is acquired and maintained. Substantive democracy refers to the three dimensions on which democratic societies are reproduced: institutional, societal and economic. I explain each in turn.

Procedural democracy is characterised by free and open competitive elections between self-constituted political actors awarded equal legal status and free from interference from the state, with an unencumbered right to vote shared by the entire adult population of citizens (and in the case of NZ, permanent residents, of which I am one).  This much is the obvious procedural minimum–there is more with regard to how the selection of incumbents of political decision-making positions is accomplished. But the key points are the freedom of expression, preference and competition embedded in the concept of procedural democracy; and the fact that elections, in and of themselves, have no intrinsic worth. By themselves elections are just a procedure, or as a Chilean observer once commented, a type of “secular communion” held at regular intervals by the electorate to consecrate their commitment to the political form as well as to select those who shall temporarily rule.

That is where substantive democracy comes in. Elections without institutional, societal and economic underpinnings are all procedure and no substance. Ferdinand Marcos held (and won) regular elections, as did the PRI regime in Mexico and Brazilian military regime of 1964-1985. The country where I am currently living has regular elections as well, but the outcome is pre-determined: the ruling party always wins. Thus, what matters most for the constitution and consolidation of democracy is not holding elections, but the substantive reproduction of democracy in its institutional, societal and economic dimensions.

Institutional democracy refers to the organization of the state apparatus and collective actors, the rules that bind them, and the forms of interaction they engage. The guiding principle of institutional democracy is transparency, equality and accountability. Institutions, both public and private, big and small, operate in away that minimizes preferential bias or ascriptive intrusions in their governance and outputs. The notions of polyarchy and pluralism apply here. Good representation of the concept is the notion that “justice is blind” or that collective agents and public officials are responsible (effectively answerable) to their principals. Needless to say, even in an advanced liberal democracy like NZ, the reality is somewhat less than the ideal.

That may be due to difficulties at the societal level. Societal democracy refers to the inculcation of notions of consent, concession, compromise, collective interest, equality, solidarity, individual rights, mutual consideration, egalitarianism and legitimate exchange. This promotes general belief in tolerance, respect for difference, non-hierarchical outlooks and negotiated solutions in the pursuit of mutual second-best collective outcomes (as opposed to self-interested first choice maximization of opportunities). It also promotes a (relatively) high degree of public participation in politically-oriented activity (including participation in the type of demonstrations seen in Auckland the past few days). This is what distinguishes democratic from authoritarian societies. Yet here too the ideal is not matched by reality even in the most mature of democracies–but it remains an aspirational objective.

Part of the reason societal democracy is less than perfect is due to failures to achieve economic democracy. At an economic level substantive democracy involves a general agreement within society that favours political guarantees for maintaining a minimum standard of living and just compensation for productive labour. It includes acceptance of minimum health and welfare standards for those who are structurally unemployable (i.e., through no fault of their own). The means of achieving economic democracy are much debated, but the fact of its necessity is not.

There is a fair bit of argument about what dimension should come first. Does procedural-institutional democracy precede societal and economic democracy (as liberal theorists claim), or, as Marxists argue, is the process the reverse? Can it be imposed by external actors, and if so, on which dimensions? (I would argue that in most cases it cannot). The degree to which a society has moved towards achieving procedural and substantive democracy helps distinguish between liberal, illiberal, exclusionary, delegative and radical democratic systems. As an example, let us imagine that we can “score” democratic “value” points based on a continuum from least to most (please note that this is my subjective rating for heuristic purposes and does not use Freedom House or Transparency International scores). Generally speaking, arrayed on a scale of 1-10 (1=undemocratic; 10=democratic utopia), countries are considered democratic if they score above 5 on all dimensions (a minimum of 20 points). Moreover, that score is not static or immutable–it varies over time depending on socio-economic, demographic and political conditions. Thus, when I arrived in NZ in 1997 I scored the country as a 8 on a procedural level, 8 on an institutional level, 9 on a societal level and a 7 on an economic level. By 2007 my scores for NZ were 7.5, 7, 8 and 8 ( a net decline of 1.5 democratic “value” points). In contrast, I had the US scored in 1997 as 6, 6, 8 and 7, moving to 5., 5.5, 7.5 and 6 under the reign of George W. Bush. As for the country I am currently living in, the scores are 1.5, 5, 6.5 and 1.

The point is not to argue for the precision of these scores. The point is that democracy is a living, breathing entity, one that reproduces dialectically across the above-mentioned dimensions, and one that is susceptible to decline if it does not reproduce a minimum threshold of democratic “value” across them. In subsequent posts I shall elaborate on the five factors that need to be reconciled for this to occur. These are consent, uncertainty, contingency, entitlements and self-restraint. In the next post I shall address the issue of consent as the foundation of hegemonic rule, and of  democracies specifically. 

For the moment suffice it to say that I endorse Anita’s insightful remarks about the early political socialisation of children, as that constitutes a precondition for the achievement of societal and institutional democracy.

PS: Please feel free to weigh in. All reasoned views welcome–after all, I have a book project in mind!

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Weldon: not very reassuring

Perhaps sadly, the highlight of my week is sometimes Mediawatch on Radio NZ National, due largely to interviews by Colin Peacock such as this one about Media Biz 09 (on which I blogged here), and the one with Mark Weldon which aired this morning (interview starts at 06:40).

In it, NZX CEO Mark Weldon doesn’t so much defend the stock exchange’s acquisition of rural publisher Countrywide Publications as attack those who dare to query the conflicts of interest which arise from the acquisition. Rather than accepting that there are perceived conflicts of interest from the fact that the NZX makes a lot of revenue from argicultural market data, and that Fonterra chairman Henry van der Heyden is a director of the NZX board (among other issues), he responds by alleging a conspiracy:

“I think that’s completely bonkers. That’s the second time today I’ve heard that actually, so someone’s doing a reasonably good job of getting that around, and I’ve got a reasonable idea who it is.”

In almost the next breath, he accuses those raising questions of van der Heyden’s conflict of being wide-eyed and credulous:

That’s just nonsense. I think it’s just typical conspiracy theorist tall-poppy crap.

… before going on to emphasise how CPL is a good down-home NZ company, and that the NZX is holding its Christmas party at their HQ in Feilding this year, as if that’s relevant. This echoes his tone in response to similar questions by Fran O’Sullivan. It gets worse: he then resorts to indignant sarcasm when answering the sort of questions which any credible journalist would rightly be criticised for not asking:

Peacock: Have assurances been sought or given to Farmer’s Weekly and other publications, Dairy Exporter, that they will be entirely free to carry on reporting and publishing as they have been in the past?
Weldon: No, I myself actually am going to write all the articles for these farmer’s weeklies, because I’m an expert in all of this stuff.

Essentially he’s trying to argue that the NZX and the people who lead it are above reproach, beyond being held to accountability by the media, and should simply be allowed to get on with their business without having to answer pesky questions like this. He seems to completely misunderstand what the media is for by arguing that businesses – and especially regulators – should not need to be held accountable by them. Not a very reassuring position for someone who now is part of the media to take. Even less reassuring, as picked up by Peacock from O’Sullivan’s article linked above, is his attitude toward commentator Alan Robb, whose work is published in CPL titles and who has been publicly critical of the decision:

There is, I have to say, a fair degree of disappointment from myself and internally that we’ve got this person Alan Robb whom we now pay who apparently has issues with presuming what our level of integrity about editorial is.

Subtext: “Why are we sponsoring criticism of our decisions?”, and perhaps an answer to the question of who Weldon thinks was “putting about” the idea that conflicts of interest exist, as if it takes a rocket scientist to see that they do. Not very reassuring at all.

The stupid thing is that Weldon gets it. He understands the media ecology well enough to know why the CPL publications must be, and must be seen to be scrupulously independent from the NZX, van der Heyden and anyone else. Carrying on in response to Peacock’s ongoing questions:

We have no interest whatsoever in writing for Farmer’s Weekly or Dairy Exporter. What we do have an interest in is ensuring that the most information can be distributed the most broadly, because that’s how everyone is better off and that’s ultimately how markets work … It would be absolutely stupid on a monetary and financial level for us to prevent anything like [criticism of Fonterra, etc] because all it would do would be immediately undermine the brand which undermines the value of the franchise. There is no economic alignment whatsoever in changing the approach that is currently taken. The second thing is, readers are incredibly astute, we’re very aware that the media will look at this with a reasonable amount of cynicism and anything that we did try and do like that would be picked up in a second and would become a story in and of itself, as I can tell, and even my brain can figure out from this interview that that’s sort of what’s on the mind. So it would be incredibly stupid for us to do that because it would be seen for what it is.

Quite some self-awareness, all of a sudden; he’s dead right on both counts, and it would undermine the credibility of the NZX as well. CPL is a small fish in this ecology. So why, instead of trying to make out that the NZX should be above reproach and assumed to be doing things right and properly – in the same way that those responsible for the current financial crisis were assumed to be infallible and benign – would Mark Weldon not have welcomed the media scrutiny on the basis that he, the others at the top, NZX and CPL had nothing to hide and were quite prepared to be subjected to the full gaze of the press? Such a response would have resulted in people saying “this Weldon chap understands the role of the media in the economy, and his company can therefore probably be trusted to own some of them”.

I suppose there’s one good thing come from it. By protesting too much at the fairly gentle going-over the acquisition has received to date, Mark Weldon has ensured that the watchful eyes of people like O’Sullivan, Peacock and others (perhaps including the Commerce Commission) will not stray far.

L

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A May Day Reminder.

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

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

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

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

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

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

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

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