Category: Economy

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Current events

I was reluctant to post while I had the chance on ANZAC day, since there was such a good debate going on, and now I’ve (temporarily) run out of time again. So just a few quick observations.

  • Phil Goff’s one-two punch on the top tax rate and Auckland governance is solid, and both are good orthodox Labour positions for him to take. But it’s more of the same: lacking verve and failing to get cut-through as a consequence. I mean to post on the positioning of the taxation pledge at some stage, but in case I don’t get to: this is a good opportunity for Goff to demonstrate compromise as well as differentiate himself, by coupling a reimplementation of the top rate with an increase of the threshold.
  • Even without Sunday’s tragic helicopter crash, Goff’s timing was poor in making these two announcements before ANZAC Day. I guess you take the opportunities you can get, but delaying things by a week would have been more useful in my view.
  • As an aside, my mum knew the three late airmen vaguely through Search and Rescue, and confirms the universal sentiment that they were of the very best sort. I’m pleasantly surprised that the crash hasn’t turned into a witchhunt about why we’re still using Vietnam-era hardware; as true as the sentiment might be, we can all do without people thundering “if we’re going to have a military, we owe it to our troops to have it decently-outfitted” under circumstances such as these. Such is the power of ANZAC day, I suppose.
  • On a related point, the discipline with which the military, government, police and media have adopted the Air Force’s framing terminology in this event is remarkable. All four groups are talking about “the Air Force family” and exploiting the metaphor for all it’s worth. Those words are used almost every time one of these people stands in front of a microphone, and in addition the three deceased are “brothers”; Mark Sainsbury reported live last night from the family’s “lounge”, the squad room at Ohakea air base; all four have referred to the Iroquois as being like “your grandfather’s axe” — the reference being that, although it’s very old, when the handle is worn it gets replaced, and when the head is worn it gets replaced, so while it’s his axe in spirit, it actually contains no parts of the original tool and is as good as new in function. On the one hand, this is compelling symbolic stuff: nobody who deviates from this framing can really be said to be showing the proper sort of respect and deference; on the other hand, it’s a bit creepy for everyone to be falling into lockstep behind Defence HQ communications. There are ways of saying these things without using the exact same words, and the constant repetition spooks me. Maybe I’m just sensitive. [Edit: There was a clean sweep for “Air Force family” or something similar in speeches supporting the Prime Minister’s parliamentary motion of condolence. No shock there, I suppose.]
  • On a somewhat lighter note, Councillor Tony Jack has picked the wrong district council to put a motion banning macrons in council materials. This is the Kāpiti Coast District Council, who moved to put the macrons into Paekākāriki and ÅŒtaki only a month ago. Jack’s motion was voted down, at which point he predictably declared that PC had gone mad. Bless. Of course, the Stuff article doesn’t contain the macrons, so I guess he wins as far as that goes.
  • Tim Watkin at Pundit continues to write excellent sense and ask smart questions about race relations in Aotearoa New Zealand. I think the emphasis in Tim’s piece is just right — there is a legitimate claim to indigeneity for non-Māori, but it’s not so obvious as Trevor Mallard’s “I was born in Wainuiomata”, and there’s a lot to work out before such definitions can be settled upoin comfortably. I’m all for having this discussion. I particularly like the ornithological allegory drawn by commenter “william blake” — we are all PÅ«keko!
  • Also on a lighter note, a (very) atheist friend whose six year-old daughter has chosen to go to Bible study classes recently asked him if, because Jesus had risen from the dead, that meant he was a zombie. It apparently took every ounce of his parental commitment to letting his girl make up her own mind to explain the origins of zombie stories, how myths come about, etc. rather than just saying, yes, Jesus is a zombie. Good on him — not sure I would have had the fortitude.
  • Speaking of things biblical, and of belonging, Joanna Newsom has a new album out, and here’s the first single — about tilling one’s own bit of the Garden of Eden:

Ok, so not so brief after all. Discuss. I’ll dive back in as I can. You can treat this as an open thread as well: post what you want to talk about.

L

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They have to want it as much as you do.*

I spoke with an old Pentagon friend today (a person with whom I shared strategic planning duties in a specific area of concern, and who went on to far greater things than me), relating to him my early observations about Greece in crisis. I mentioned that the Greeks, who have a public sector that dwarfs the private sector, in which the public sector average wage is far above that of the private sector, have a huge sense of collective entitlement and natural rights. For example, university students (as public entitles) are currently demonstrating daily against proposed cuts in their free lunch and bus pass benefits, but not at the university. Instead, they disrupt downtown traffic. Tomorrow the seafarers, bus drivers and railway workers go on a 12 hour strike to protest wage freezes or labour market infringement  (the train and bus workers are public servants facing wage freezes and the seafarers are striking to protest non-EU ships being allowed berthing rights in Greek ports. Their combined walkout will paralyze the transportation network for 8 hours ). 

But media coverage of the issues is somewhat odd. Rather than look inward, the popular press is full of anti-German rants because the Germans will determine the conditions of the Greek debt bailout (which only delays the inevitable default), and the conditions imposed by the Germans (as majority holders of Greek debt) are considered to be the reasons why Greek workers will not get their entitled, perfunctory raises.  All the while  life goes on–the cafes and supermarkets are full, people crowd the trains, there are few demonstrations outside downtown. People do not appear to connect the impending default to their lifestyle.

Usually wages are tied to productivity, which means that if the public service is well paid it is also efficient (such as in Singapore). But in Greece it is not. From what I have observed and what my Greek interlocutors have told me, nothing gets done or it is waste of time to demand action. For example, on Saturday an illegal gypsy market spung up on the street outside our apartment building. It closed the street to vehicular traffic and vendors camped out on the apartment footsteps. The neighbours shut the front entrance doorway, which is usually propped open, out of fear of robbery. I asked my landlord if that was commonplace and she said that yes, although illegal the gyspy market had run for years because neighbours had zero success in complaining and bribes may have been paid for the authorities to look the other way (which indeed they did–I saw not a single cop during the entire afternoon the market was running).  In other words, Greek public service is as much a hindrance as a help to civil society, hence the proliferation of grey and black market activity. The curious thing is that this situation is tolerated by both of the dominant Greek parties, respectively left and right centre as they may be, because public sector employment and benefits is a common source of patronage and clientilism. Neither one wants to upset that apple cart (even if the latter is foreign debt-bought and effectively owned). 

Mind you, not that all Greek public services stink. When compared to the Auckland raillway system, for example, the Athenian Metro is stellar. There are few delays on the six inter city lines, complete integration with buses and suburban rail lines, and close integration with ferry and airport schedules. The only visible problem, from my non-expert viewpoint, is that there appears to be way too many people (or too little, depending on the station) doing nothing in pursuit of this goal. Then again, I tried the Henderson-Auckland (before and after Britomart) route for years, before and after it was privatised,  and the public-controlled Athens Metro system has it beat by a country mile.

Not that the Greek private sector is a beacon of innovation and entrepeneurship. To the contrary, it is mostly low skilled small holdings with no growth or technological ambition (think butchers, cosmetic vendors and locksmiths), and the political-economic elite (they are the same, crossing familial ties in many instances) in this rigid two party system have no interest in promoting the sort of capitalist ambition that would erode their joint lock on power. Cuba is similar in this regard, because in both cases oligarchic control supplants popular innovation as the motor of progress and majority consent is bought with public sector employment (not that I am drawing a direct line between the two regimes as a whole).

Which is to say, Greek economic backwardness is cultural, contrived and perpetuated by the Greek status quo. The elite see no need to change because deficit spending is a double edged sword, as many US banks found out to their dismay. Deficit-laden countries intimately locked into the European financial system such as Greece will not be allowed to collapse  becuase if they do the financial run is on given that Spain, Portugal and Ireland are all in the same predicament–too much debt, too little ability to pay within IMF/ECB guidlelines.  Hence, Greece may default, but it will not be allowed to financially collapse if for no other reasons than that the repercussions would be catastrophic on the European banking system itself.

Which is where my fomer Pentagon friend comes in. I noted to him that the problem with EU expansion is that the leading EU economies, France and Germany, viewed EU monetary expansion into Southern and Eastern Europe as a development project in which the lagging peripheral economies would be modernised by virtue of their connection with the European core (first via labour-intensive investment, then by value added industrial growth). The Euro giants emulated the US when it engaged Latin America in the 1960s and 1970s under the rubric of modernisation theory: just expose the backward masses to a little capitalist entrepenurialism and all will eventually be right.

Err…wrong.  As my friend noted, the locals have to want the change as much as we/you (external agents) do. And that is a cultural issue more than anything else. 

Developmentalist views such as that of the EU and US ignore the cultural component of investment climates. National preferences are different, cultural mores vary, and collective notions of rights and entitlements are not transferable across borders. The Germans and French may have thought that lending money to Greece to fund the Olympics would promote its modernisation, but like the Yanks in Latin America, they failed to understand that Greek culture–what it means to be Greek–supercedes any IMF/European Central Bank prescriptions. Hosting the Olympics was temporary; to be Greek is forever, and that is not reducible to a current deficit repayment schedule. To the contrary. It is reducible to notions of rights and entitlements crafted over milleniua and mytholoigised as such. That bottom line is not within an IMF  or European Central Bank purview.

Which is why my friend Ray’s point is well taken: an external actor can only help as much as the locals want to help themselves. There is no point in offering assistance and prescriptions if the locals do not see the need to change. Absent a local consensus on the need for change (which can be influenced by externally driven media manipulation but which ultimately has to resonate in the hearts  of the citiznery) better then  for external actors to cut bait than to engage in futile hope that the local conditions will change.

In fact, the opposite may be true: the less a country is propped up by external actors and the more it is forced to look inside itself for solutions, then the more it may eventually address the root causes of its backwardness, decline or stagnation (New Zealand could well be a case in point). In any event, only after internal failure is acknowledged that external assistance will make a difference in Greece or elsewhere, and that difference is not material but attitudinal.

 According to my buddy, that fact is as true for Greece as it is for Somalia, Irag and Afghanistan, and in the latter instances, the stakes are arguably much greater. I disagree with his summary assessment as it applies to Afghanistan (as I believe that there is more at stake than local self-realisation), but cannot help but recognise the truth in his words. At the end of the day in this age, no matter the degree of previous exploitation and subserviance, the root problem of backwardness lies within. Or to put it in my friend’s terms, “if the locals do not want to do it, it aint gonna happen.”

There is truth in that view and no amount of good intentioned external help will resolve the fundamental issue.

*Update: For a jaded by humorous view of Greek politics check this out.

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Niwa Knobs.

 

***THIS POST HAS BEEN UPDATED ON APRIL 17 TO ACCOUNT FOR NEW INFORMATION RECEIVED***

Niwa has announced that a contract to upgrade the research vessel RV Tangaroa has been let to a Singaporean company rather than a NZ-based consortium. The EPMU and Labour Party have criticised the move, citing the fact that local jobs were at stake and a chance to up-skill NZ workers was lost. And of course, the flow-on effects of employing NZ workers is obvious, because they will spend their  wages a bit on beer but more on nappies, mortgages, rent and DIY projects. All that is true and reason enough to oppose the Niwa deal, but there is much more to the story. That is because the bottom line boils down to what I shall call a dirty money savings. Here is how it works.

The Niwa chief knob, John Morgan, refused to state what the bids were, but other sources have noted that at $9 million the NZ contractor bid was more than double the $4 million Singaporean bid. Sounds like he got his maths right. Mr. Morgan then went on to say that the Singaporean contractor had a lot of experience and 3000 staff  dedicated to the task as well as many resources to do the upgrade, which he claimed was a complex operation that involved cutting holes in the hull of the ship in order to install a dynamic positioning system (DPS) that holds the ship steady and precise over an undersea target in variable conditions (how he thinks that 3000 people will work on that one job is another question,  as is the complexity of cutting holes in a boat, but I am just quoting from the NZPA article on the decision).

He defended the decision as a cost-savings bonus for the NZ taxpayer, and the Minister for Research, Science and Technology the vainglorious “Dr” Wayne Mapp (Ph.D.s in Law are not usually addressed as Dr.) pontificated that although he was not involved in the decision he supported it because the NZ consortium was not dependent on that contract (presumably that resource-rich Singaporean outfit was) and, quote, “after all we have an FTA with Singapore.” File that one under “another Mapp moronity.”

Here is why the deal is dirty. Unskilled and semi-skilled Singaporean shipyard workers (e.g. stevedores, drivers, loaders, builders and roustabouts)  are paid between SG$10-15 dollars per day. Non-engineer skilled workers (divers, torchmen, pipefitters) may earn double or triple that. They are mostly foreign workers on temporary visas (mainly from Bangladesh, mainland China and India) who cannot bring their families with them and who are housed in containers and squalid dormitories with occupancies of 20-50 men per room and one toilet amongst them (women are not allowed on the docks). They are not allowed to independently organise or collectively bargain. They work 12 hour days and suffer extremely high rates of industrial accidents–over 50 workers died in 2009 from injuries received on the job, and dozens if not hundreds more were crippled by accidents. In the vast majority of cases, seriously injured foreign workers who are unable to return to work are left dependent for months on private charity until their claims for compensation are resolved or are deported once they leave hospital (and often repatriated in any event).

Mr. Morgan is reported as saying that the Singaporean bid, at $30/hour (it is not clear if he is speaking of US, NZ or Singaporean dollars), was half the NZ $60/hour labour costs. But whatever the currency, $30/hour would only apply to supervisory and managerial staff who would not be doing the physical labour involved in installing the DPS system (which would be done by the foreign workers mentioned above). That means that his claims of labour costs savings on which the decision partially rested is either a willful misprepresentation of  the true Singaporean figures or, worse yet, a sign that Niwa did not undertake due dilligence in ascertaining the veracity of the $30/hour figure. In other words, if the latter is true then Niwa got fleeced by the Singaporean contractor, who then pocketed the difference between its real labour costs and the $30/hour figure. If the former is true, the Mr. Morgan needs to be held to account for his miserepresentation.

There is a bigger picture to consider. Singapore is an authoritarian state in which political  party competition and elections are rigged, freedom of speech is restricted and foreign workers are  not covered by the same labour laws as Singaporean citizens. Instruments for foreign worker redress, compensation and mediation are virtually non-existent. The Singaporean lifestyle, so admired by John Key and other acolytes of the Singaporean regime, is based on the gross exploitation of these foreign workers who, after all, build the buildings Singaporeans live and work in, provide the food, transport and maid services they are accustomed to, construct their highways and polish their cars, and staff the hundreds of foreign MNCs the use the country as an operational hub. Foreign workers comprise a quarter of Singapore’s nearly 5 million population, so the economic debt owed to them is great.

That is why the decision is about dirty money savings. Forget the job-related issues in NZ. Niwa’s decision is based on its knowingly countenancing the human rights abuse of a vulnerable group of people in a foreign country. It violates ILO standards, it violates NZ labour law, and it violates nominal notions of decency in doing so. Mrs. Morgan and Mapp may argue that Niwa is saving the NZ taxpayer money, and that it is not responsible for the behavior of foreign contractors, but in doing business with the Singaporean firm it could well wind up with blood on its hands. Put succinctly: the money Niwa saves on the deal comes directly from the sweat and blood of these foreign workers.

None of this would matter if NZ was an authoritarian state unconcerned about human rights and fair labour standards. The problem is, NZ spends a lot of time in international fora banging on about exactly such things. However, this appears to be more a case of  “do as I say, not as I do” because NZ in recent years has seen fit to cozy up to regimes like those of  Singapore, China and a host of Middle Eastern autocracies, in which the very concepts of universal rights and fair labour standards are not only disputed, but rejected out of hand on “cultural difference” grounds. Well, that may be the case because as Lew so nicely put it a while back, “NZ foreign policy is trade,”  but NZ does not have to contribute to the perpetuation of exploitation in foreign cultural contexts, especially if its reputation depends on its rhetorical championing of human rights. That is a matter of choice, and the choice in this instance is clear.

There is such a thing a trading fairly and doing business in an ethical way in which the bottom line is not just about money, but about human decency as well.  A restrained rate of profit or reduced savings on cost are often a better guarantee of long term investment than short term profit maximisation or miserliness,  and an interest in foreign worker conditions can contribute to the betterment of international business practices. But the choice here has been to save costs rather than stand on principle and improve by example. For a country that prides itself on its international status based upon fairness principles, decisions like this one give the lie to the cheap talk in international confabs.

All of which is to say–shame on both of you, Misters Mapp and Morgan. But then again, we would not expect otherwise.

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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.