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.
Gaming Gay Marriage
I have never quite understood the argument that gay sex is “unnatural.” Unless one believes that the only natural sex is that which reproduces the species, then how one chooses to express sexuality is as natural as differences in hair or skin color. If we admit that sex can be a means of expressing love, affection and physical pleasure rather than purely a reproductive act, then how one goes about doing that is as natural as variations in climate or on a theme. It does not matter if sexual preference is by “choice” or genetics or some combination thereof. Once the reproductive imperative is removed as the sole reason for having sex, then how one chooses to partake is almost limitless (I say “almost” because I adhere to convention that sex should be between consenting adults, or in the case of teenagers, between those of similar age, and that no coercion or exploitation can be involved).
I introduce the subject of gay marriage this way because I simply fail to understand why it is an issue. When I hear opponents argue against it I am reminded of the old Argentine saying about Catholic clergy opposed to divorce: if they do  not like divorce they should not marry. Or the more recent retort: if one does not like gay marriage then one should not marry a gay.
One thing is clear. The reproductive imperative does not apply to the legal recognition of straight marriages. Many heterosexual couples are childless by choice or circumstance. Some fulfill their parental instinct via adoption or with the help of surrogates, but others do not. In all cases they are legally free to marry.
Having thought about it a bit in light of recent arguments arising out a parliamentary bid to legalize gay marriage, it strikes me that the debate can be seen in simple game theoretic fashion.
Those opposed to gay marriage see the outcome if it is legalized in zero or negative sum terms. Awarding the right to marry to homosexuals will directly and negatively impact on heterosexual marriage. The belief is that awarding gays the right to marry comes at the immediate expense of heterosexual marriages, and that something will be directly lost or detracted from the latter if the former is permitted. Worst yet, the situation could become collectively negative sum if gays are allowed to marry: both gays and straights will suffer losses as a result (this is usually seen in the “children need hetero parents” argument, but extends to the costs of awarding full rights to married gay couples when it comes to family-oriented taxation, insurance and health benefits). The bottom line is that awarding equal marriage rights to gays (as a sexual minority) will impose costs or losses on the sexual majority, and therefore should not allowed under the lesser evil principle because collectively it is a lose-lose proposition.
Those in favor of gay marriage see the issue in even or positive sum terms. They see gay marriage as taking nothing from nor adding to hetero marriage, or in the most optimistic view, enhancing the value of marriage as an institution by extending the franchise to those of same-sex persuasion who wish to monogamously commit to each other in the eyes of the state (I will leave aside issues about non-monogomous unions and plural marriages in order to make the first-order point). In this view gay marriage should be encouraged as it deepens the familial bases of social stability and is therefore a greater good for society as a whole. It is a win-win solution.
Whatever other issues are put forth pro and con, it seems to me that this is the real crux of the issue. The rantings of bigots and extremists are not addressed here simply because they do not matter. I include in this God-botherers and other repressed and closeted people who act out of irrational psychological fear. Nor do I care to indulge the arguments of some extremists who think anything goes and there should be no prohibitions on sexual contact (say, the Man-Boy Love Association crowd). Here I am simply trying to distill the rational arguments in favor and against.
For me the issue is certainly even sum and probably positive sum. If we accept that one major source of social decay is the decline of the “traditional” family defined by heterosexual marriage, then it seems to me that one good response is to encourage the rise of “non-traditional” families as a complement. After all, “traditional” gender roles have been altered over the years (I would say for the better) without killing off the majority notion of marriage and family as the pillars of society, so I do not see how non-traditional marriage and families will be any more harmful to social stability than allowing women the vote or non-whites to have equal civil rights.
With regard to marriage specifically, there are already precedents for taking what was non-traditional or even taboo and making it commonplace. For example, marriages of mixed race or inter-faith couples, or those with intellectual or physical disabilities, once were viewed as suspect or dangerous (often on reproductive grounds), and in some cases legally proscribed. Today they are additional and welcome threads that rather than harm have added to the vibrancy of the matrimonial fabric of complex societies.
Anyway, this may be obvious to KP readers given their ideological dispositions. The point I am trying to make is that marriage is not a pie with a finite number of slices, where giving one slice to gays will mean that there is not enough left for straights. To the contrary, marriage should be seen as an expanding pie in with we can all share regardless of sexual preference because we commonly appreciate the order and stability it helps bring to our individual and collective lives. I reckon that is a very traditional way of thinking.
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.
The Crown Gets Its Pound of Flesh.
I am surprised by the jail sentences handed down to Tame Iti and Te Rangikaiwhiria Kemara in the Urewera 4 case. I had expected substantial fines and at most community service sentences for all of the defendants. The same day the Urewera 4 were sentenced a doctor was fined $1000 for firing a crossbow at a tree 3 meters from a tent of sleeping children at a DOC camp site, so it seemed reasonable to me that people who discharged firearms in the vicinity of no one other than themselves would receive sentences in line with the good doctor’s. But, as it turns out, the Judge in the Urewera 4 case had a different line of reasoning, and it is worrisome.
Even though the Urewera 4 were not found guilty on criminal conspiracy charges, the judge who sentenced them, Rodney Hansen, repeatedly referred to them as if they had been. He spoke of an armed militia with leaders and followers, and he mentioned molotov cocktails–the possession and use of which they were not convicted of–as proof of something sinister going on the outskirts of Ruatoki. But the sentences were supposed to be for violations of the Firearms Act alone–six in the case of Iti, Kemara and Emily Bailey and five in the case of Urs Singer. So why did the judge bring in a line of reasoning at sentencing that is more appropriate to a guilty verdict of criminal conspiracy, and why the relatively harsh penalties for violations that, quite frankly, are fairly routine in some sectors of New Zealand society? In fact, the sentences do not distinguish between the types of firearms used by different individuals, so that those who handled a sawn off shotgun were treated the same as those who handled a bolt action .22. Bringing up the subject of molotovs, militias, purported bombing (but not bus-flinging) plans at sentences for Firearms Act violations is irrelevant and prejudicial.
Lew and I have written previously at some length about the discrepancy between this prosecution and the seemingly blind eye the Police and Courts cast on very similar bush antics by right-wing extremists who make no secret of their hatred for assorted ethnic and religious groups and who have proven histories of violence against those they hate. I shall therefore not repeat what we have said. But what I can say is that these sentences confirm to me that this Crown prosecution was about punishment and deterrence, not justice. One way or another the Crown was going to extract its pound of flesh from at least some of the original defendants, a process that not only involved lengthy delays in providing the defendants with their day in court (by over four years) and the admission of illegally obtained evidence, Â but which also is designed to serve as a warning to others who might be of similar ideological persuasion and direct action mindset. As I have said before, the process was the punishment for the original 18, and these sentences are the final act in that process. It has not been fair, it has not been just, and other than assuage the primordial fears of conservative Pakeha such as Louis Crimp, the National Front and the closet Klansmen that inhabit the right-wing blogosphere, it does nothing to advance respect for the law and the concept of equal treatment for all.
Given that the sentences for Iti and Kemara appear to be disproportionate to the crimes committed, and that the judge’s reasoning was at least in part based upon tangentials that should not have been admitted at the sentencing phase, I would hope that they will be appealed and eventually reversed. Otherwise the conclusion to Operation 8 looks like another case of Pakeha utu on people who dare speak truth to power in unconventional, theatrical and ultimately silly ways.
They Never Learn.
There is an old rule in politics that states that it is not the original sin that gets politicians in trouble. It is the cover-up or lying about it that does them in. The examples that prove the rule are too numerous to mention and span the globe. This week we have another classic case in point: Shane Jones and his explanation as to why, as Associate Minister of Immigration (the Minister of Immigration at the time, David Cunliffe, had earlier refused to revoke Liu/Yan’s residence visa and for some reason unknown to me was not involved in the granting of citizenship), he ignored expert legal advice and granted a Chinese fraudster expedited citizenship.
According to Jones he did so on humanitarian grounds because he was told by an unnamed Internal Affairs official that the applicant–he of at least three different names and an Interpol warrant out for his arrest–would be executed and his organs harvested if he were sent back to China. Forgive me if I cough. That is up there with Annette King’s claims that no one in the Labour government knew about Operation 8 until the weekend before it began.
Others have already torn Mr. Jone’s supposed rationale to shreds. Beyond the fact that not even the Chinese execute people for common fraud, even if they are members of Falun Gong (a claim supposedly made by but never proven by Mr. Liu/Yan), a legitimate fear of a politically-motivated death sentence would result in an asylum request, not a citizenship application based  upon a business visa. Nor would Mr. Liu/Yan speak of traveling back to China with a delegation of Kiwis in order to explore business opportunities in the PRC (as it is claimed he did in his conversations with immigration officials now testifying at his trial on false declaration charges). But according to Shane Jones, not only was he facing certain death but also certain organ harvesting (which raises the question as to how the unnamed Internal Affairs official could know this in advance given that the Chinese do not harvest organs from all executed prisoners because the health of the condemned varies). Put bluntly, Mr. Jones is simply not credible, and unless that unnamed official comes forward to take responsibility for the bogus claims (which Mr. Jones could have ignored), his justification simply does not wash. Add in the fact that Mr. Liu/Yan had donated considerable sums of money to Labour coffers in the lead-in to his citizenship application, and the smell of something fishy permeates the affair.
What is amazing is that when confronted with the evidence presented in court, David Shearer continued to back Mr. Jones and even allowed him to go public with is ridiculous justification. That violates a second rule of politics, which is that when smoke begins to surround a politician on ethical issues his or her party needs to move swiftly to prevent a full-fledged fire from erupting by distancing the tainted one from the party as a whole. By not doing so immediately and only leaving open the possibility of standing Jones down if an investigation proves him guilty of wrong-doing in the Liu/Yan affair, Mr. Shearer has failed the basic test of leadership that involves saving the party from further uncomfortable scrutiny on the issue of campaign financing and political donations.
Once again, let us remember the iron law of oligarchy that governs all political parties: the first duty of the party is to preserve itself. Individual political fortunes come second. Legalities aside, it is the appearance of unethical behavior on the part of Mr. Jones that is at play here.
What is even more amazing is that this comes on the heels of the John Banks-Kin Dotcom scandal and John Key’s equally egregious mistake in not removing Banks from his ministerial post while the Police investigated whether Banks violated political finance laws in his dealing with Mr. Dotcom. Regardless of whether the press played this sequence of events on purpose, the scenario unfolded as follows: National was on the ropes in the weeks leading up to a dismal budget announcement, beleaguered by policy and personal conflicts and dogged by an increasingly assertive mainstream press. Rather than strike a contrast in approach that would give it the moral high ground that would allow it to score major political points against its weakened rival, Labour’s response to revelations of the dubious ethics of one of its senior members in a past government–dubious ethics that are being aired in court for crikey’s sake–is to bluster and blow more smoke on the matter. Do they never learn?
Just as Mr. Key should have removed Mr. Banks from his ministerial position as soon as his denials and lies about his relationship with Mr. Dotcom were exposed, so Mr. Shearer should have moved quickly to demote Mr. Jones until such a time as an independent investigation exonerated him. Given the passing of a few news cycles and the issue would have faded into the political “bygones be bygones” category. By not doing so Mr. Shearer has allowed the Jones-Liu/Yan relationship to become a distraction away from National’s peccadillos and policy failures. He has, in fact, thrown National a life line in the days before the budget announcement and the decision to demote Banks (who could stay in government but not be a minister pending the resolution of the Police investigation), and I would imagine that the National caucus are high-fiving and back-slapping each other in delight.
Of course there are political calculations in all of this. By-elections are costly, list candidate replacements are unproven or unreliable, internal Party factional disputes run the risk of being aggravated or exposed. Â National is clearly waiting for the Budget to be announced before moving on Banks. Labour does not want to lose a senior figure who “ticks the boxes” of important internal constituencies. And yes, there is a difference between illegal and unethical activity.
But in putting these calculations ahead of ethical considerations given the appearance of impropriety, both parties have once again shown their contempt for the NZ public. And on this score, Labour’s contempt is much worse. After all, Mr. Banks was just a greasy-palmed private citizen seeking to be mayor when he approached Mr. Dotcom for support. Mr. Jones, on the other hand, was a Minister of State who apparently used his office to bestow special considerations on an individual in exchange for, uh, party “favors.” Â Both actions were slimy, but it is the official nature of Mr. Jones’s intercession that makes his behavior worse. Which is why he should have been stood down straight away, because rightly or wrongly, it is the attempt to downplay or cover up past impropriety, rather than the potentially unethical or illegal behavior itself, that will cling to the Labour Party long after Mr. Liu/Yan’s case is adjudicated.
A Turn to Mean.
As I watched various labour conflicts over the past few months, then took in accounts of greed-mongering of various types (the wheel-clamping rort being the latest), I set to wondering if things have turned mean in NZ. I tend to think so, and believe a lot of it has to do with National’s presence in government as well as the increasing stratification of NZ society–something National’s policies tend to exacerbate. Some of this collusion is obvious, such as changes to labour laws that strip worker’s of collective rights while enhancing employer prerogatives when hiring and firing (under the banner of so-called “flexibility”). Some is less so, such as in the “look the other way” approach to the conditions that led to the Pike River and Rena disasters and the hands-off government reaction to them. But the trend towards meanness began well before National returned to government in 2008 even if it has gotten worse under it.
It strikes me that the syllogism involved goes something like this: increased employment precariousness born of economic recession in climates of market austerity premised on cost-cutting in both the public and private sectors leads to increased anxiety, then desperation amongst the salaried classes as their life opportunities narrow. In the measure that collective means of defense and redress are also pared down and stripped of legal cover, agency takes precedence over principal to the point that individual rank and file interests are sacrificed in favor of continued union bureaucratic presence (however diminished) in those economic sectors that remain at least partially organized. In the measure that workers realize that their agents have adopted the “iron law of oligarchy” where bureaucratic self-interest and survival becomes the primary objective to which rank and file interests must be subordinated, notions of collective solidarity are abandoned in favor of individual self-interest. Since this is the dominant ethos at play in unorganized sectors of the economy and amongst the managerial and financial elites, the move to survivalist alienation becomes endemic (and indeed pandemic, if we include the fact that immigrants are socialized into the culture of meanness, thereby propagating the “disease” beyond its original culture). The original agents of transmission, in any case, would appear to be the market ideologues who have metastasized into the managerial elites of the present day.
When survivalist alienation becomes endemic, cultural, ethnic, religious and other forms of ascriptive categorization are used to justify the “me first” approach to social intercourse. Until then people may just be bitter. But this is the point when things turn mean.
I could be wrong and this has always been the case in NZ. My impressions are formed since 1997, so perhaps what existed before was indeed a land of milk and honey. But it seems to me, beyond the inter-generational inevitability of the trend towards hyper-individualism there lay a number of accelerants that have made things worse in the last ten years.
Labour’s new Tui Ad.
Former Police Minister Annette King says that she and her cabinet colleagues were not informed about Operation 8 until the night before the dawn raids. She says this after stating that the Solicitor General advised the Police at the time to charge those arrested under the Terrorism Suppression Act, only to change his mind after the raids were completed.
Annette King expects us to believe that she, as Police Minister, had no clue about a police operation that was going to invoke the TSA for the first time, not against foreign terrorists but against a collection of well-known domestic dissidents with long histories with the Police. She expects us to believe that Helen Clark, the micromanaging, all-knowing Prime Minister and Minister for Intelligence and Security, had no clue about Operation 8 even though the TSA was used to justify the electronic surveillance of the suspects a year before the raids, that SIS assets were used to that end, and that the raids would be carried out on Tuhoe land as well as in cities (a delicate political issue, to say the least). She expects us to believe that Phil Goff, the Defense Minister, was clueless about the operation even though, as the foremost counter-terrorism unit in the country, the NZSAS could be called into action should the situation warrant (which would require some advance notice). She expects us to believe that the Combined Threat Assessment Group (CTAG) was not involved in the build up to the raids, or if it was, that this inter-agency task force did not inform any senior government minister until the night before the doors were kicked down. She wants us to believe that then-Police Commissioner Howard Broad, well known for his ties to the the Prime Minister, did not utter a word about who was targeted and why until less than 12 hours before the cops rolled.
She would like us to believe that with the possible exception of the PM, no one in the 5th Labour government was aware of Operation 8 until October 14, 2007. This, even though multiple agencies were involved and the lead-up  to the raids was over a year in the making.
Yeah Right.
Accumulation versus Distribution.
The bottom line of any political economy resolves around the question of accumulation versus distribution. Productive activity that generates surpluses (profits) can be accumulated by those who control the means of production (workers or capitalists), or can be distributed throughout the larger community in which production is located. In capitalist system decisions about accumulation and distribution are done by capitalists. Workers organizations fight or bargain for better distribution of profits. Capitalists would prefer to accumulate for their own consumption. Because production is essential for the material standards of everyone, in democracies capitalists and workers negotiate the proper ratio of profits saved to profits distributed. Once distribution has occurred (via wages, benefits and the like) the saved part of profit is re-invested or “taken” by capitalists (owners) for personal use. Both sides adopt minimax negotiating strategies by making maximum claims on the preferred ratio, then settling for a mutually acceptable minimum. By doing so neither wages or profit-taking rise too recklessly or out of proportion to productive gains or inflation, as that would lead to inefficiencies and potential social unrest.
Or so the system is supposed to work. Depending on relative political balances and the specific location of a given productive sector in the capitalist world cycle at any specific moment, workers or capitalists may have structural and political advantages to play in their favor. Workers will attempt to maximize distribution in the form of job security and wage and benefit gains; capitalists will attempt to maximize accumulation by rolling back worker’s redistributive gains.
For the last twenty-five years logics of accumulation and profit-taking have dominated macroeconomic thought. Workers have steadily seen their distributive gains eliminated. As the process has deepened capitalists have pushed not only to reduce the material aspects of the distributive process. Sensing a favorable economic and political environment in places like New Zealand, they are launching attacks on the rights to collectively organize in defense of distributive stakes or goals. Capitalists well understand that for people to have economic rights they must have political rights. Â The right to organize collectively is a political right. Reduce that right and previously held economic rights are more easily curtailed or eliminated. The more the concept of economic rights based on distribution is pushed towards a minimalist definition (encapsulated in the saying “you are lucky to have a job”), the more workers will limit their distributive demands in the quest for basic subsistence. The more that they do so the more working class internal competition will further push down the overall wage bill and increase job insecurity. The process of “casualisation” is the result of that trend, with “labor flexibilisation” being the managerial jargon used to describe employment precariousness.
Today in New Zealand the scales are tipped in favor of accumulation over distribution. The political and economic elite (including many in the Labour Party leadership) overtly side with the logics of accumulation argued by capitalists. They accept the reasoning that in the current global economic moment distribution to workers is contrary to future growth. Thus they accept that not only worker’s distributive demands but their political rights must be curtailed in order for economic benefit to occur. Of course, that benefit accrues to capitalists rather than workers, and if the low rates of re-investment in many productive sectors is anything to go by, profit-taking out of accumulated surpluses have been very good for capitalists indeed.
None of this is particularly new or surprising, even if recent labor conflicts had led to commentary about an impending class war in New Zealand, among other places. What is happening today is just the logical conclusion of a process of market-driven accumulation that began in the 1980s and which is reaching deep into the foundations of modern political economies today. The purpose is to forever privilege accumulation over distribution, and to ensure the political conditions in which workers can no longer challenge that logic or have a say in fixing the “equilibrium” ratio of accumulation to distribution.
Such a system has long been noticed and understood by the materialist school of class conflict. It is called the Asiatic Mode of Production, which relies on super-exploitation of human labor for accumulation gains. Given that New Zealand’s original market ideologues borrowed some of their policy prescriptions from the Chicago School of monetarist economics (later conceptually distorted in the word neoliberalism) as widely applied by capitalist authoritarians in the 1970s and 1980s, it seems  that their heirs have borrowed from the Chinese or Singaporean models, which are also heavily reliant on authoritarian political and social controls. This shift in preferred macroeconomic models makes perfect sense when we consider the move, shared by both major parties, to focus NZ’s diplomatic and trade relations on Asia and the Middle East, where democratic “niceties” are in short supply and where capitalists are largely unencumbered by human rights, much less labor rights or worker’s substantive rights to a share of the benefits of production.
The modern Asiatic model is as ruthlessly efficient as its predecessors, but is also based on a downwards redefinition of the concepts of economic and political rights that is generally considered anathema to democratic values (which in the labor market are enshrined in International Labor Organization conventions, now under siege in NZ and elsewhere). It would seem that in this particular market-driven moment, authoritarian capitalist reasoning prevails, accumulation is the sine qua non of macroeconomic policy, and the notion of egalitarianism as the basis for stable social order reflected in a fair ratio of accumulation to distribution has been abandoned in favor of the all-mightly profit-taking “bottom line.”
That is the state of play in New Zealand today.
Exaggeration as a prosecution strategy.
Judging from the media coverage of the Urewera 4 trial, including video and audio evidence given by the Crown to the press, the prosecutorial strategy is quite clear. It consists of three interwoven strands that together offer a narrative about politically-motivated armed criminal conspiracy. The first is to say that the activities depicted in the evidence were serious military-style (paramilitary) training. The second is to characterize the exercises as, in the words of the Crown Prosecutor, “training for…guerrilla warfare,” something that implies a target and an objective. The third is to claim that this training constituted a clear and present danger to the New Zealand public, or at least to the political elite who the defendants in the alleged conspiracy commonly oppose. Although the usual sub judice protocols are said to be in place, selective  leaking of the video and audio tapes (whose legality is in dispute) helps the Crown backdrop its case, in a form of trial by media in which there is no right to rebuttal. The release of the audio and video evidence was done for prejudicial reasons, not because the Crown had to.
The problem for the Crown is that the video and audio evidence covertly collected by the Police suggest something less than dangerous proficiency on the part of Tame Iti and his activist comrades. There is no doubt that the camps had a paramilitary flavor to them. So do hunting camps, paintball competitions, male-bonding sessions and survivalist exercises. More tellingly, the video shows rank amateurism and indifferent commitment by the people involved. Â As an example, Omar Hamed, an original defendant who is not on trial, is seen in close up video coverage looking like an excited 12 year old with his first rabbit hunting.22 (which was the actual weapon he was holding) as he stares directly but obliviously at a surveillance camera a meter away (which suggests a lack of situational awareness given that the Police claim that Mr. Iti repeatedly warned his activist colleagues to beware of “eyes and ears” on their activities). His pea shooter may or may not have been loaded. Mr Iti’s concerns, as it turns out, were justified.
In the video some people march purposefully and some shuffle listlessly and mill about while others converse and apparently shoot at unspecified targets. Some give instructions. Some wear balaclavas. A car bonnet is used to prop up a shot. There is rudimentary martial arts training seen in the video, but it is farcical given the skills of the people involved (in a creepy sidebar with relevance to this aspect, it is suggested in some quarters that Mr. Hamed is more dangerous to activist Left women than he is to the status quo). Audio of cluster fire (cluster fire is the overlapping of multiple shots from several weapons in order to saturate a target area) does not identify who was doing it or what they were shooting at, and the presence of spent cartridges under a pock-marked tree tells little in light of the amount of hunting that occurs in the Ureweras.
Frankly, I would be more concerned if the videos showed the activists on a boar hunt, slitting the throats of piglets while yelling “death to imperialism!” The activities shown are far from that and much more about make believe. From what I have seen, the NZ public have little to worry about from this crowd.
As I have said before, it is not a good look for anti-war, Maori and environmental activists to be playing at commando. But it is not a crime to do so–many other people do–so the prosecution’s case is built on a grand exaggeration. It attempts to show a level of competence, organization and training focus to the paramilitary exercises that simply was not there. If anything, the video evidence is an embarrassment to those in them, whether or not they had a political motive for being at the camps. That is curious because neo-Nazi groups do the same type of “training” with a better (yet pathetic) level of competence and a definite, publicly stated political goal of preparing for racial conflict, yet somehow have avoided being the subject of a Ruatoki-style Police response and four year Crown prosecution.
The Crown exaggerates its case not only to secure convictions but also to smear and deter. Mentioning the phrase “guerrilla warfare” indirectly introduces the word terrorism into the juries’ minds. By overlapping the two concepts the prosecution smears a certain type of Left activism with the dreaded “T” word. Even those not on trial–we should remember that all charges were dropped against  13 defendants–are tainted by their association with that word even though no formal charges of terrorism have been laid against any of them. The purpose of raising the specter of guerrillas in our midst is clearly to smear the defendants, but also to deter others on the Left who might wish to add paramilitary skills to their activist inventory.
The Crown imputes coherent motive to the defendants when it speaks of guerrilla warfare. It claims that it has evidence of such. But even if a common motive was established (perhaps hatred of “Da Man”), the inference is that this motive was focused on preparing to use armed violence against specific targets in pursuit of a unified goal. That is a stretch, not only because of the varied causes that the original group of defendants espoused, but also because of the clearly different levels of enthusiasm and combat skills they exhibit, none of which come remotely close to credible guerrilla organization and tactics.
Thus, from what the press coverage has been so far, the Crown prosecution of the Urewera 4 is much ado about nothing. The process is the punishment, because after four plus years of uncertainty, expense and de facto restrictions on their movements (some of the original defendants have been refused entry to foreign countries, which means that their names are on an international security list very likely provided by the NZ authorities), those on trial today, their Urewera colleagues and others on the activist Left (since the neo-Nazi Right appears to be immune) will think twice about making like Warriors even if this trial results in acquittals (the most likely case for conviction will be firearms law violations). Regardless of the outcome of the trial, in that regard the Crown prosecutors and the Labour and National governments that have overseen them will have won. Engaging in procedural delays, legal manipulation of charges and prosecutorial exaggeration is a successful Crown strategy regardless of the formal outcome.
That is the most troubling aspect of the entire affair. By stretching the definition of what constitutes a serious threat of domestic guerrilla warfare in order to prosecute a well-known group of Left-leaning fantasists (who may or may not have had wanna-be militant ambitions), in what appears to be a specifically targeted vendetta, the Crown has played loose with the basic rules of democratic jurisprudence. In doing so fairness and justice in the legal system has been sacrificed at the alter of political opportunity, which is a far worse outcome than the individual fates of the accused.
There may be new and alarming revelations to come that would substantiate the Crown’s case against the Urewera 4. But from where I sit, using what is currently in the public domain, this appears to be a prosecution based on malice, not facts.
A Culture of Impunity?
During the dark years of dictatorship in South America in the 1970s and 1980s, there emerged a phrase to capture the attitude of the elites who benefitted from such rule: the culture of impunity. It referred not only to the attitude of the uniformed tyrants who ran the regimes, but more to that of the civilian elites who gave them social and economic support, and who benefitted lavishly thanks to the repression and restrictive laws on basic rights of association, dissent and movement. These civilian elites literally lived above the law, since they could, if not be directly protected by the regime’s thugs, be immune from prosecution or liability for crimes and other transgressions they committed simply because of who they were. Murders, rapes, abuse of servants, violent attacks on members of the public–all of these type of behavior were excused, ignored or bought off rather than be held legally accountable (I do not mention justice simply because it is impossible to have real justice under dictatorial conditions). Although there was variation in the attitude of some elites and cross-country differences appeared as well, the bottom line is that during the authoritarian period in South America a culture of impunity developed that was one of the salient social characteristics of the regimes in question.
With that in mind I ask readers if such a culture of impunity exists in NZ. I ask because it strikes me that although diluted and less repressive in genesis, there appears to be an attitude of impunity in the political and economic elite. They can buy silence and name suppression when they misbehave; with a wink and a nod they accommodate employment for their friends and provide sinecures for each other (think of various Boards); they consider themselves better informed, in the know, more worldly and therefore unaccountable to the popular masses when it comes to making policy (think of the use of parliamentary urgency to ram through contentious legislation and the NZDF command lies about what the SAS is actually doing in Afghanistan); they award themselves extraordinary powers in some  times of crisis (Christchurch) while absolving themselves of  responsibility in others (Rena). They use the Police for their own purposes (Teapot Tapes and Occupy evictions, the latter happening not because of public consensus but done by summary executive fiat). More generally, think of the lack of transparency in how government decisions are made and the duplicity of elite statements about economic issues (say, the price of wage goods) and political matters (e.g., recent internal security legislation). Coupled with equally opaque decision-making in NZ’s largest publicly-traded firms, or the cozy overlap between sectors of the judiciary and other elites, the list of traded favors and protections is long.
None of this would matter if NZ was run by Commodore Bainimarama. It would just be another Pacific island state ruled by a despot and his pals. But as a liberal parliamentary democracy NZ regularly scores highly on Freedom House and Transparency International indexes, to the point that it is often mentioned at the least corrupt country on earth (which is laughable on the face of things and which raises questions about the methodologies involved in such surveys). To be sure, in NZ traffic cops do not take cash bribes and judges do not have prostitutes procured for them by QCs representing defendants, but corruption does not have to be blatant and vulgar to be pervasive. And in the measure that elite sophistication in accommodating fellow elites outside of the universal standards applicable to everyone else is accepted as routine and commonplace, then a culture of impunity exists as well.
My experience in NZ academia, two respectable volunteer organizations and in dealing with national and local government officials suggests to me that such a culture of impunity does exist. It may not be that of Pinochet, Videla, Stroessner, Banzer or Geisel, but it seems pervasive. It appears to have gotten worse since I arrived in 1997, which may or may not be the fault of market-driven social logics and the “greed is good” mentality that has captured the imaginations of financiers, developers and other business  magnates (or it could just be a product of a long-established tradition of bullying, which has now spilled over into elite attitudes towards the country as a whole).
Mind you, this does not make NZ a bad place. It simply means that there is an encroaching, subversive authoritarian sub-culture at play amongst the NZ political and economic elite that undermines the purported egalitarianism and equality on which the country is ostensibly founded (I am sure there are sectors of Maoridom who will take reasoned exception to that claim). And if so, has the corrosive culture seeped into the body politic at large so that almost anyone is a relative position of power vis a vis others thinks that s/he can get away with behavior otherwise contrary to normal standards of decency and responsibility?
Does NZ has a culture of impunity?