Category: governance

Posted on

Familiarity becomes Contempt.

Johns Key’s answers to the “mystery” of the US Air Force executive jet parked at Wellington during Hobbit mania gives us a good indication of his attitude towards the public and the press. Although the plane was misidentified several times by reporters as a private plane, it is in fact part of a fleet of US Air Force transport aircraft that are used regularly to fly high level politicians and bureaucrats to foreign meetings. The make, model, livery, insignia and identification number would have been readily recognizable to plane spotters, so Mr. Key was correct in saying that there was no secret to its visit. It was how he answered the question of who the visitors on the plane were that gives an indication of his current mindset.

His initial response is that he did not know who was on the plane or the purpose of its visit. He said he may have seen the name of a visitor on a piece of paper but could not recall it. As Minister of Intelligence and Security that would seem to be an odd thing to say, especially since it played (now apparently purposefully) on the “brain fade” impression he developed as a result of his forgetfulness about the Dotcom/GCSB illegal espionage case.

What is puzzling is that he could have said any number of things: that he did not discuss intelligence and security matters in principle; did not discuss “quiet” visits by foreign (US) officials as a matter of policy; did not discuss the visits of foreign intelligence officials; or that he could not confirm or deny the presence of any such on NZ soil. It would be the same if he refused to comment on military matters citing operational security (but where again, he obfuscates and prevaricates rather than just offer a straight answer or refusal to comment). He could have said any of these things and the story would have died.

Under a second day of questioning he admitted that the plane carried a high-ranking US intelligence official to meetings with NZ intelligence officials and that the meetings involved counterparts from other foreign intelligence agencies. He denied these were meetings of the Echelon/5 Eyes partners even while saying that they hold regular meetings in NZ, the latest in July or February (depending on which version of his recollection one chooses to believe).

This comes at a time when the 5 Eyes community have been rocked by a major spy scandal in Canada, where a naval intelligence officer sold highly sensitive tactical and strategic signals intelligence data to the Russians for five years before his arrest in early 2012 (which would require the adoption of a number of sanitizing and preventative counter-measures throughout the network). It comes after the obfuscations and weirdness surrounding the GCSB involvement in the Dotcom case (which may well have started before Dotcom arrived in NZ because the NSA–the lead agency in the Echelon network–was already monitoring Dotcom prior to his arrival and would have likely asked that the GCSB continue the surveillance after he crossed the border). It also comes at a time when Huwaei is under scrutiny by the Echelon partners for its possible involvement in Chinese signals intelligence collection efforts, which are focused on the West in general and 5 Eyes countries in particular.

Under the circumstances  a visit by senior 5 Eyes counterparts to discuss matters of common concern would not be unusual or untoward, if nothing else as an information-sharing exercise or so that they could get their ducks in a row on matters of institutional or public interest.

Thus the question begs as to why Mr. Key did not just refuse to comment citing matters of national security but instead opted to play dumb and incompetent, thereby heightening initial interest in the story?

My belief is that he has general contempt for the public’s intelligence on matters of foreign affairs and security, and that he believes the masses are not interested in the subject anyway. But his focused contempt is of the press or at least non-submissive members of it. His brain fade act is more than simply lying. It is the deliberate winding up of the press over matters that, while not inconsequential, are relatively routine or non-controversial but which he can successfully cover up so that press inquires are frustrated needlessly. In other words, he is taking the piss out of the media.

He has similar contempt for those who oppose or question his policies. He recently said that anti-TPP activists should be ignored (even though these include a large number of distinguished subject experts, academicians, politicians and former and current trade specialists). This adds to his list of those that should be ignored, including mining safety experts, environmental scientists, Maori rights activists and asset sales opponents.

The point is that as Minister of Intelligence and Security Mr. Key could respond to questions about  intelligence and security in an authoritative manner that does not compromise either while demonstrating his command of the portfolio. That he choose not to do so and instead pleads memory loss and disinterest in these two vital components of national security suggests that he is doing so either because he really is clueless and out of his depth on intelligence and security or, more likely to my mind, he is deliberately doing so just to wind up his “enemies” in the press while dismissing detractors in civil society against a larger backdrop of public disinterest.

He is also being contemptuous of those who serve under him in critical national security roles because his feigned ignorance leaves those leading intelligence and security agencies hanging out to dry in the event that something in their purview but under his ministerial watch goes sour. Truth be told, by the terms of his ministerial portfolio he is briefed regularly and exactly on all matters of intelligence and security. Either that, or the institutional edifice of security in NZ is praetorian, something that I doubt its security partners would accept, much less agree to.

If Mr. Key is not clueless on intelligence and security matters, then the “spy” plane response and his other actions show that along with being contemptuous of those who may seek to hold him to account, he is arrogant, irresponsible, disloyal, mean-spirited and vindictive as well. To which can be added one more trait that has emerged in Mr. Key as of late: callous narcissism.

When asked recently what he was the most sorry for over the last year, he answered that it was the failure to convince the public of the benefits of the mixed ownership model. He was not as sorry about the deaths of five NZDF troops in Afghanistan, or the needless deaths and continuing failure to retrieve the bodies of the Pike River miners, or the ongoing debacle that is the Christchurch reconstruction process, nor about the leaks of private information by government agencies or the unhappy disputes with Maori over treaty settlement issues (in fact, he made no mention of these). Instead, he most laments the failure of a pet economic project to gain public traction in 2012.

That may not be surprising, but it sure is contemptible.

 

Posted on

Political Fratricide.

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

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

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

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

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

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

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

 

Posted on

Interpreting the conservative take on the US elections.

If I read the conservative commentariat correctly with regard to tomorrow’s US elections, the following will happen:

Obama wins: As the fifth rider of the apocalypse, Obama will bring the end of days, armageddon, leading to the imposition of a debt-ridden, welfare-spending LBGT atheistic Islamofascist Zionist-Stalinist-Orwelian state in which children and the elderly are eaten after being vivisected and animals and dirt will have more rights than natural gas. The walls of the shining White house on the hill will crumble. Locusts will plague and fire will belch from the skies in non-industrial areas as the ground turns to dust and the rivers run dry. The seas will retreat and the icecaps will melt, but not due to man-made climate change. Female sports will become dominant.

Romney wins: Milk, honey, money and expensive Eau de Cologne will rain down upon the chosen debt producing and debt reducing Christian people and hedge fund managers, sunshine will spring eternal, a million flowers will bloom, all dole-bludging, illegal alien LBGT atheist Islamofascist Zionist-Stalinists will be rendered asunder by lightning strikes from the heavenly Father and world peace and prosperity will obtain in our time. White folk will become cool again. Soccer will be purged from the global landscape because it is un-American and does not involve teams with American Indian names, padding, helmets or blunt instruments and has a penchant for shorts that is second only to League in terms of questionability. White shirts and somber ties will once again be suitable apparel. Shoes will be tied. The help will know their place.

Posted on

Who to Believe?

Journalist John Stephenson is a person of high integrity and a strong memory. He does not report anything until he is exactly certain he has the facts correct. Prime Minister John Key has a difficult relationship with the truth and suffers from memory loss well in advance of his age. He responds to unwanted or contrary facts and opinion with derision, distraction or insult.

John Key says that the SAS is in Bamiyan after the dual ambushes of NZDF troops to provide logistical and intelligence support. He initially said that only four SAS officers were dispatched but now admits there could be a couple of others in Bamiyan as well. John Stephenson reports that the SAS are actively engaged in the hunt for those who ambushed and killed NZDF personnel, and that their numbers exceed those offered by the PM.

Given their track records, if I had to take the word of one against the other, I would take the word of John Stephenson.

I also think that it is perfectly fine and natural for the SAS to deploy to Bamiyan after the ambushes. After all, the NZDF has been the lead ISAF force in that province since 2002 so has the best (albeit insufficient) knowledge of terrain, transit routes, local politics and the nature of the enemy. The SAS’s most basic role is long-range patrol, infiltration and surveillance. Thus they are a natural fit for the job of hunting down those responsible for the deadly attacks on NZ soldiers. The hunt for the killers involves but is not reducible to utu or revenge. It is about letting the Taliban know that attacks on the NZDF during the process of withdrawal from Bamiyan will not be tolerated. The Taliban understand utu. It is in fact part of their fighting culture. To not engage the SAS with the purpose of delivering a lethal response would be seen as a sign of weakness and encourage more attacks. Bringing the SAS into the equation reduces that possibility.

The Bamiyan PRT consists of approximately 4 platoons with an engineering and medical complement. The SAS officers deployed after the ambushes likely have assumed command of those platoons in order to sharpen the latter’s respective patrol skills. Although bad for the conventional officers who likely were relieved of their duties in the wake of the ambushes (one of them was seriously injured in the first attack), this is a smart thing to do given the worsening security situation in Bamiyan. It would also not be surprising if SAS enlisted personnel were sent to reinforce those platoons with their sharpened combat skills.

Since all of this is pretty well understood in military circles, the question begs as to why Mr. Key insists with a cover story that is patently bogus. Has his experience as a money trader made him believe that he can bluff, hedge and bluster his way out of every corner?  If so, then his condition is pathological and undermines his mana. After all, what worked amongst the closed community of money traders does not always work in an open society with a critical press and a political opposition looking for cracks in his leadership facade. With John Stephenson as his main counter when it comes to what the NZDF is really doing in Afghanistan, Key is on a hiding to nothing when he persists with his obfuscation on military-security matters.

 

Posted on

On the need for intelligence accountability and oversight reform.

One thing has become clear after the revelations of multiple New Zealand intelligence agency failures, malfeasance and incompetence over the past few years. That is what happens when there is no effective oversight on, or accountability by those agencies. As things stand the Prime Minster is the sole oversight on New Zealand’s intelligence community. The parliamentary intelligence and security committee is a toothless wonder that gets semi-regular general briefings on intelligence matters (at a rate of less than once a month), and the inspector general (IG) of intelligence–the person who is supposed to independently investigate the actions of the intelligence community–is currently a geriatric former judge who has the equivalent of a .5 full time employee and whose office and resources are provided by the agencies he is supposed to independently assess. His predecessor, another retired judge, resigned under a cloud brought about by the Ahmed Zaoui political asylum  case, where the Security Intelligence Services (SIS)  was shown to have clearly manipulated analysis of intelligence flows derived from foreign partners and the IG demonstrated bias in favor of  the SIS version  of events prior to releasing his findings.

Add to that the fact that the IG has limited powers of investigation and a parliamentary committee that cannot be told about operational matters and has no powers to subpoena or authority to force testimony under oath, and what you have is a recipe for institutional “stretch:” the tendency of institutions to exceed and play loose with the rules, laws and regulations governing their charter in the absence of effective oversight and accountability. That has become glaring apparent in recent weeks.

The problem is somewhat mitigated when the Prime Minister is a hands-on type of manager who is knowledgeable about intelligence matters, to include methods of collection and analysis. Although it raises the possibility of PM misuse of intelligence flows for political purposes, it does have the merit of forcing intelligence officials to be accountable to someone. However, if the PM is disinterested, ignorant or laissez-faire in managerial approach to intelligence matters, then the possibility of intelligence agency institutional stretch becomes quite real, as we have now seen.

Given the revelations about the GCSB and prior instances of SIS “stretch,” the time is now perfect for a reform of the intelligence oversight apparatus. Although the PM can and should remain as the minister for intelligence and security, the parliamentary committee needs to be granted effective and binding oversight authority that includes powers to investigate operational issues and force intelligence agency officials of all ranks  to respond under oath to questions about the how, when and why of specific intelligence matters. Likewise, the Inspector General’s position needs to be expanded into a three person panel that includes a mix of people with experience in handling sensitive information and knowledge of how intelligence collection and analysis works, and who answer to and are resourced by parliament rather than the PM and SIS, respectively.

Unchecked executive oversight of intelligence agencies is prone to what might be called the authoritarian tendency (by which elected executives assume quasi-dictatorial powers of managerial control), and is in fact the mark of many authoritarian regimes. This avoids the system of checks and balances that is not only a hallmark of democratic political systems, but of their institutional component as well. The issue, as the intelligence community well knows, is about triangulation: there needs to be at least three independent (if overlapped) sources of critical institutional scrutiny for information or oversight to be validated (which are manifest in policy or administrative decisions).

That system of institutional checks and balances is what provides oversight and promotes accountability within public bureaucracies as a whole. Such accountability is horizontal–between different public agencies such as the judiciary and security apparatus–as well as vertical (where public agencies answer to political authorities separated into legislative and executive components). The institutionalized oversight aggregate mitigates against public agency stretch and political manipulation.

Having one individual, whatever his or her persuasion with regard to issues of intelligence collection, analysis and political impact (something driven by the political context of the moment, including  the relationship between government and opposition and the  personal and partisan implications of any given decision regarding security and intelligence) is, in a democracy, antithetical. In mature democracies policy decisions are not individualized; they are institutionalized and subject to effective oversight.

This is simply a matter of democratic good practice. Effective, independent oversight not only keeps intelligence agencies honest and prevents institutional stretch. It reassure the voting public that the larger common interest, rather than narrow political, diplomatic or corporate concerns, are served by the intelligence and security agencies charged with defending the commonweal.

Posted on

Blog Link: Australia as a different type of BRIC.

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

Posted on

Blog Link: Deconstructing New Zealand Foreign Policy.

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

Posted on

Opinionated Coroners.

In the past few weeks coroners have been in the news. The investigations of the disappearance of an emotionally distraught woman at Piha, the Kahui twins murders and the death of a cyclist on Tamaki Drive have seen a surprising, some would say unusual, level of coroner opinion voiced on sensitive issues, some of which verges on editorializing.

For example, in the Piha case the coroner placed some responsibility for the young woman’s death on a couple of good Samaritans who tried to shelter and comfort her for four hours after she asked them not to call the police because she feared that the cops were angry at her. The coroner ignored the actions of seven other people who also interacted with the victim, including those who last saw her alive–naked and delirious talking to a light post–but did nothing and those at the house that she had fled from fearing sexual assault. He also downplayed the gross negligence of the police, who called a taxi rather than send a patrol car in response to the original 111 call from the distressed woman (the taxi driver was clueless and went to Onehunga rather than Piha). The coroner’s bottom line is that civilians should leave the handling of emergencies to professionals even if that means ignoring the wishes of those at risk. The implicit message could well be “do not get involved.”

The coroner in the Kahui twin case basically fingered the father for the murders. Since the father was acquitted of murder by a jury in a well-publicized trial, it will be interesting to see if the case is revived by the Police. The coroner’s verdict is clearly an instigation to do so.

The coroner in the Tamaki Drive cycle death case has suggested that it be mandatory for cyclists to wear high visibility clothing and to ride in cycle lanes where available. However, the cyclist was killed in daylight after swerving to avoid an abruptly opened door from a car parked immediately at the end of an irregularly marked cycle lane, on a notoriously tight corner. He ignored suggestions by bicycle advocates that the Auckland Council’s failure to remove parking along narrow stretches of Tamaki Drive contributed to the accident (which it did two days after the accident), or that the truck that killed her failed to adhere to the 2 meter gap rule (which ostensibly is the distance that should be maintained between cyclists and motor vehicles on roadways and which is in the road code). He reiterated a juries’ verdict that the motorist who opened the door without first looking behind him was not at fault. In effect, he blamed the cyclist for her own death.

I am curious about this. I am not an expert on Coroner’s courts or investigations, but I had thought that they were focused on the facts of the case in order to determine causality via a chain of events or circumstances. In this cases outlined above, the scope appears to have been expanded into opinionating and assigning blame rather than simply recommending improvements and safeguards to avoid similar occurrences. Have I got this understanding wrong or is this unusual?

I must confess that I live near Piha and have some local insight into the circumstances of the young woman’s disappearance. I am also a former recreational, commuter and competitive cyclist who has ridden on numerous occasions on Tamaki Drive (too flat for serious training unless it is a time trial, and only “safe” on early weekend mornings). I do not much care for infanticide regardless of who does it. So perhaps I am reading too much into these coroner’s reports, but from what I have seen it appears that in these cases they were interested in more than establishing the facts of the matter at hand.

Posted on

Market-oriented social engineering.

The political Right regularly accuses the Left of engaging in social engineering. Be it pushing such unnatural constructs as union and civil rights, health awareness and environmental concerns, the Right claims that the Left is out to control how people behave and even think. For freedom-loving individualists, this is anathema.

Consider my surprise, then, when I saw the Prime Minister saying that one of the reasons for the $2000 dollar “kiwi-first” purchase option with loyalty premium for Mighty River Power shares was to “change the investment psychology” of New Zealanders. It seems Kiwis put money into real estate and bonds, but not the stock market. Mr. Key thinks that his countrymen and women should diversify their portfolios into stocks, and the asset sales option is one way of promoting that. After all, it is not really prudent to have too many eggs in one basket.

I can see his logic. As a money trader and speculator, stock manipulation comes natural to Mr. Key. Sell short, hold, think long…he has the field covered. And truth be told, in a market environment such as NZ’s, it may not be unreasonable to urge people to spread their savings around. Higher rates of savings are traditionally linked to higher standards of living and growth, so by market logic such a move is both collectively and individually optimal.

What I find notable is the PM’s admission that the Mighty River Power stock purchase proposal is a deliberate attempt to alter the way Kiwis think about investment. In other words, it is a social engineering project that proposes to transform the psychological disposition of Kiwis when looking at their investment options.

But if that is the intention, how is that different from campaigns to get people to stop smoking, not drink and drive, use public transport, practice safe sex, license and desex their pets or stop littering? Are these not all examples of what the Right claims is undue interference by government on the rights of individuals to freely choose how to live their lives? Even if one admits that the share purchase option is not compulsory and still a matter of free choice (as are some of the examples just mentioned), is not the intention of the National government and Mr. Key to engage in exactly the type of social engineering–to include psychological indoctrination–that the Right accuses the Left of championing for its nefarious totalitarian purposes? Mr. Key has admitted that there is a social engineering intent to the proposal, so how is that good when other social engineering experiments are considered by the political Right to be bad? Or are some types of social engineering more acceptable to freedom-loving market individualists than others?

If the latter is true, than even the Right has to admit that social engineering projects embarked upon by governments are not always contrary to the small-governance/more market/individual choice principles that ideologically underpin Right thought. And if that is the case, then how can social engineering experiments be totalitarian, collectivist and fundamentally anti-democratic at their core?

Pardon me if I see a little contradiction here…

Posted on

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

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

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

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

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

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

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

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

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

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

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

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