David Shearer says he won’t rule out buying back shares in state-owned power companies sold by the government. He won’t rule it in, either. Why? Does he need to consult his leader?

There’s so much wrong with this that I scarcely know where to start. This buyback agenda has been set by Winston Peters; it’s now two years since the 2011 election campaign kicked off with a pledge to sell these assets, and it’s like the boffins in Labour haven’t yet had an original idea about it. The problem with old generals is supposed to be that they fight today’s war with the strategies of yesterday’s war, but this is worse — it’s fighting yesterday’s war with the strategies that lost the one before that.

But enough about my thoughts on the referendum. This time the issue is what happens after the SOEs are sold. Chris Trotter has articulated strong political arguments for nationalisation, and I think these serve to demonstrate that nationalisation is not simply untenable for a left-wing political movement.

So while I’m not persuaded the opposition should do it, there’s definitely a right and a wrong way to go about nationalisation. The core principles are similar to those in play with the initial privatisation: that we should have good information about the intentions of the main political decision-makers; and that people should not have property expropriated without due process. This need not be perfect consent — an election result delivering under 50% was sufficient to grant a mandate to privatise half the value of these assets, for example.

Market and electorate signals
Shearer’s “maybe we will, maybe we won’t” is the worst possible position. The markets into which these shares will be floated need signals so as to judge risk, and the electorate needs signals so as to judge the quality and character of the politicians they might vote for in 2014 and beyond.

A clear “we will buy them back” or “we will not buy them back” would do that; it would tell the market and the electorate what to expect and they could act accordingly. Both groups would know we were dealing with politicians of at least some sort of conviction, and more to the point, someone willing to make some big calls, to put something on the line. Today we see before us a Labour leader who has neither the conviction to know what he wants to do, nor any will to do it.

As Chris says, a stance one way or the other would provide Labour with a mandate. If Labour considers nationalisation irresponsible, then as voters we ought to know that; but it is much more crucial to justify an actual nationalisation programme. Given that the current criticism of the government is that they lack a mandate to do something they campaigned for a whole election year on doing, I struggle to see how even the most one-eyed Labour partisan could honestly justify the massive expense of buying back SOE shares unless it was clearly signalled and voted on beforehand.

This need not be unconditional. Graeme Edgeler has suggested a provisional pledge — Labour could say that if, say, two thirds of respondents in the referendum vote to not support the asset sales then an incoming Labour government would seek to nationalise them. David Shearer has many options that are better than “maybe”.

Economics of a sell-off/buyback
If Labour genuinely believes — as it has told us for two years now — that the value of these assets is greater than the cost of borrowing to buy them, it should be easy enough to show that buying them back at fair market value is worthwhile. This will likely have the effect of inflating the price, but it would at least do our international reputation comparatively little harm.

It might be reasonable for Labour to pledge to buy the shares back at cost, but only if the pledge is made credibly and early — certainly no later than the first round of sales. The pledge would be fair warning to investors: if they choose to disregard it, that’s on them.

Because it allows the markets to price in the risk of a Labour-led government coming in and making good on its promise, signalling nationalisation in this way would likely depress the initial sale value of shares. If the threat was sufficiently credible it could, in principle, depress demand for shares to the point that selling them would be uneconomical — thereby preventing the sale, or limiting it to just one or two SOEs. While this would look bad for the government there is also a downside risk that the opposition would be seen to be sabotaging the scheme — but given that Labour seems certain the scheme is unpopular, that should not concern them too much.

Because there is an ideological imperative behind the sale (that is to say, the market already knows the government has to sell in order to retain political credibility) it seems likely the shares will already yield less than what an equivalent float by a less-motivated seller might yield. There are other industry-specific factors which could also depress the price — the fact that hydro generation is not much good in the middle of a historic drought, for example. I have no knowledge of the value of the assets as they stand, but it doesn’t seem totally outrageous that it might not be all that high as it is, and a little more risk might just be enough to turn people away.

Conversely, a nationalisation conducted after the shares have been sold has the opposite effect. An ideological bulk-buyer in a fair market will bid the price up. Even worse is the middle-ground: if there exists sufficient uncertainty before the float the sale price could be depressed; followed by a Labour election win and nationalisation, causing the price to rise. The government would be selling low and buying high.

Venezuela of the South Pacific
The worst of all cases is if Labour does not provide a strong and credible signal of nationalisation ahead of the float, and then proceeds with a “surprise” nationalisation on an at-cost or dictated price — or worse yet, expropriation without compensation, as has been suggested by some of the more wild-eyed idealists. Parliament is sovereign; in principle, an incoming government could do this. But it would be a brutal assault on property rights and repugnant to a modern liberal democracy, especially one so dependent on international trade as we are. It could justifiably lead to New Zealand being treated as a pariah kleptocracy, and since the SOEs are being floated on the ASX and will likely include some institutional investors there, it could also have deep trade, diplomatic and cultural implications. I expect there is also the risk of legal challenge.

The worst aspect of holding the “maybe” position Shearer has taken is that the risk of “Venezuela of the South Pacific” scaremongering exists as long as this scenario is not clearly and credibly ruled out. I don’t seriously believe this sort of expropriation would happen under a modern Labour government, but political narratives needn’t be based on reality.

If Labour commits to nationalisation then scaremongering will commence, but at least the party will be able to control the narrative around it, and articulate arguments in principle for it, as Chris has done. If the SOEs are that popular it shouldn’t be too big a risk. If Labour rules out nationalisation then such scaremongering may still eventuate, but will be weak. If they continue to sit on the fence, they get the scaremongering, but not the opportunity to rebut it. Lose-lose.

That Labour would even consider holding the “maybe” position is astonishing, but it is New Zealand First policy after all. It reflects an awareness that New Zealand First is here to stay, will probably hold the balance of power at the 2014 election, and could make nationalisation a condition of its being part of any Labour-led coalition. The deep problem is that Labour, lacking a political agenda of its own, is letting others define it. Until the party leader is prepared to lead, Labour will keep losing.

L

If it wasn’t already over on the night of 26 November 2011, the argument about the popular legitimacy of the government’s plan to partially privatise selected state-owned enterprises was finally put to bed when the pre-registration website for the Mighty River Power float fell over shortly after it went live. Whether this was a result of intentional underprovisioning to generate buzz or genuine organic demand doesn’t matter: within 24 hours 100,000 people had pre-registered interest in buying shares. That’s about one-third of the signatures opponents of the scheme took seven months to collect to force a citizens initiated referendum. The battle over whether these assets will be sold has been well and truly lost, and expending more political firepower on it is futile. The left needs to start organisaing around how they will be run.

This episode highlights two separate failures of strategy; one from the 2011 election, and one for 2014 and beyond.

Salience
Labour mistook asset sales for a high-salience issue and tried to run a campaign on it, when in reality too few cared enough for it to work. I have no reason to disbelieve the assertion that most people don’t want the assets sold. But the evidence of the election, the sluggish uptake of petition signatures, and the general lack of traction gained by the Labour party, for whom this has been the only coherent policy frame since the election, show that it is not an issue about which people are strongly exercised.

This strategy worked quite well for NZ First, and to a lesser extent the Greens, both of whom have the luxury of being able to appeal to a smaller base who care more strongly about a narrower range of issues. But it didn’t work for Labour, and the recognition that what works for parties of a relatively activist mindset doesn’t work for a broad-based, moderate mainstream party is long overdue. It failed. Time to move on.

Mandate
The notion that the government, having spent the entire year 2011 campaigning on it, lacks a mandate to proceed with asset sales is utter nonsense, as I wrote when the campaign kicked off. Labour and the Greens have decided the mood of low-level dissatisfaction with the plan that failed to win them the election will be sufficient to derail the policy now that it is on the move. They have decided that a citizen-initiated referendum, which worked so well for the opponents of the Section 59 repeal, is their best tool. Andrew Geddis wrote brilliantly about the problems with this in June last year, and here I essentially restate one of his arguments — that the Greens and Labour should be careful what they wish for. Both Labour and the Greens rely on the maxim that what’s right is not always popular. By insisting that policy be popular to be passed they risk painting themselves into a corner when next in government.

Plenty of bad policies are popular — three strikes, scaremongering about immigration, and most of the government’s welfare reforms are good examples. Despite what Josie Pagani might say, all are inimical to Labour and Green politics. How can they oppose these policies, if they’re so popular? Conversely, how can they insist on passing unpopular policies? Many of these are more central to the Greens than to Labour — the Greens are not a popular party; they poll just above 10%, so why are they embracing populism? Their policy agenda relies on making the electorate eat its greens, so to speak. Emissions control legislation, for example, will be deeply unpopular if it’s remotely effective. Likewise public transport and urban development policies, whose upfront costs are large and immediate but whose benefits are long-term and gradual, will be incredibly hard to pass if they insist on gaining the support of car-reliant suburban villa-owners.

Whether they “win” the referendum or not, at best Labour and the Greens will be vulnerable to legitimate accusations of hypocrisy whenever they propose policy that is merely somewhat popular, as opposed to being very popular. The will have demonstrated that consistency doesn’t really matter, and that could do deep harm to their long-term credibility. Worse yet, they could stand rigidly by their new-found populism and only propose policy that a clear majority of the electorate wants. Both strategies do more for NZ First than they do for Labour and the Greens.

The discussion has changed
The left has lost the argument about asset sales. Barring some sort of deus ex machina it’ll go ahead and will probably be a net vote winner for the government. But the apparent mismanagement of Solid Energy has given Labour and the Greens an opportunity to reframe the state-owned enterprise discussion, away from who owns these businesses to how they are run.

Both parties must be reluctant to do this, given that many of the bad decisions were made under the previous Labour government, and much of the lost money was poured into “green” tech like biofuels. But it is a necessary shift if the left is to own some of this debate. Regardless of what occurred before 2008, that things got so much worse under the current government, and that this was apparently a surprise to the shareholding minister is a serious failure of governance, and the public deserves answers about it. It’s a good opportunity for the left to highlight the point that there are good government managers and bad government managers, and that they will be the former, not the latter. The Greens have begun to do this by arguing that the government’s policies and directives to Solid Energy — including the lignite strategy, and changes to the Emissions Trading Scheme — effectively kneecapped the company.

Labour and the Greens should take the initiative and reframe this SOE debate now. If they persist with beating the dead horse of ownership, the risk is that the government will strengthen its case that the state simply isn’t fit to own businesses, paving the way for the rest of the SOEs to be sold as soon as they can secure a mandate to do so. The only alternative I can see for the opposition is a pledge to re-nationalise the sold assets. If they’re going to do that they need to get on with it — if they reveal this policy after the Mighty River Power float goes ahead the risk isn’t the argument that the state shouldn’t own businesses; it’s that Labour and the Greens are parties of big-government kleptocracy, trying to turn Aotearoa into the Venezuela of the South Pacific.

L

I am sure that there will be plenty of eulogies, some fawning and some harsh, for Hugo Chavez. Since I spent a good part of my academic career writing about Latin American politics, to include the nature of national populists such as Chavez and a bit about his regime itself, I am well aware of his shortcomings and strengths. It is in the nature of national populism to be redistributive, mass mobilizational and increasingly authoritarian. As a left-wing variant, the Chavez regime was all of those things, and the fact that the US supported the 2002 coup against him only cemented the increasingly authoritarian direction of the regime. But his authoritarianism was mass rather than elite-based, and it was this mass support that carried him through three terms and four elections. He was no tin pot despot. His rule was a bit more complicated than that of, say, Robert Mugabe, who took a popular national independence movement and turned it into an armed clan-based kleptocracy.

The Achilles heel of national populism is the personalist nature of executive rule. Peron, Vargas, Cardenas and Chavez–all increasingly concentrated power in their own hands, thereby removing institutional checks and balances as well as clear lines of authority and succession. That could be the undoing of the Boliviarian experiment.

After the 2002 coup Chavez purged the military and civilian state bureaucracy of professionals and populated the upper ranks with acolytes. This decreased the efficiency and capabilities of state agencies, both armed and unarmed. He increasingly relied on Cubans for behind the scenes leadership of his internal security services, including his personal bodyguards. He played divide and conquer with his parliamentary counterparts at the same time that he re-jigged the constitution to increase the length of his presidential terms as well as the electoral prospects of his political party. He populated the judiciary with supporters and increasingly restricted freedoms of public expression and the press. He trained and armed supporter militias organized along the lines of the Cuban Auto-Defense Committees. Some of these have been accused of intimidating and assaulting members of the political opposition.

He used inclusionary state corporatist mechanisms of interest group administration that bestowed favor and patronage on supportive groups and excluded or punished non-supportive groups (which thereby polarized civil society organizations). This allowed for top-down direction of the thrust of state policy and funding directed at civil society, but it also gradually surpressed independent and autonomous expressions of grassroots interest.

All of this was justified on the grounds that he faced a disloyal opposition aided and abetted by hostile foreign powers, the US in particular. Although there is an element of paranoia in those claims, there is also a large grain of truth to them. The hard fact is that just the appearance of socialist inclinations on Chavez’s part sent the US into knee-jerk opposition, something that was particularly acute under the Bush 43 administration and was not undone once Obama was elected.

Chavez did much good for Venezuela, particularly in the fields of health, education, welfare and community organization. During his time in power infant mortality rates dropped and literacy rates increased dramatically. The percentage of Venezuelans living in poverty dropped from 50 percent to below 30 percent in ten years. Rural hospitals and schools were built where there previously were none. His regime kept the price of domestic petrol cheap (as it could as a major oil-producing and refining nation), which allowed the poorest segments of the population to weather rises in the price of imported commodities.

In spite of the claims of his detractors, he won four elections handily and relatively cleanly in the eyes of most international election observers. His tenure marks a major historical moment in Venezuelan life, and his legacy will be indelible on it. Whatever his authoritarian tendencies, he was no Pinochet or Somoza. Although his regime selectively repressed the opposition, it did not systematically torture or kill. Nor did it expropriate all private wealth, although it did seek to raises upper-income taxes, nationalize some strategic assets and prevent capital flight via financial controls. Needless to say, this earned him the emnity of Venezuelan elites and their foreign supporters.

He was a close ally of the Cuban regime, but given the common hostility of the US, that was born as much out of necessity than it was out of ideological affinity (truth be told, Raul Castro always thought of Chavez as a buffoon but Fidel was flattered by his attention and both were grateful for his cheap oil supplies. The Cubans worried that he would provoke a confrontation with the US that would suck them in and destabilize them).

He expanded Venezuela’s diplomatic, economic and military relations (towards China, Russia and Iran in particular, but also with other Latin American states) so as to counter-balance the traditional US-focused obsequiousness of his predecessors. He was the motor force behind the solidarity market Latin American trade bloc known as the Boliviarian Alliance for the Americas (ALBA), which among other things rejected IMF and World Bank financial prescriptions. He had  significant Latin American popular and governmental support, which was mirrored in international media coverage.

He is alleged to have cultivated relations with Hezbollah and the Iranian Revolutionary Guard.

He presided over the deterioration of Venezuela’s core infrastructure, to include its oil production facilities (in which foreign investment dried up in response to his nationalization policies), as well as a dramatic rise in violent crime (Caracas has one of the highest murder rates in the world). He did not stop corruption but merely shifted it in favor of those who wear red berets. Venezuelan consumption of Scotch whisky, already the highest in the world when he assumed power in 1999, increased steadily from then on. He was unable to curb the Venezuelan obsession with female plastic surgery and beauty queens. So not all is well in the Boliviarian Republic. I shall leave it for others to debate the trade-offs involved and the pros and cons of his regime.

On balance, in the Latin American scheme of things Hugo Chavez was a relatively moderate caudillo (strongman) with a staunch independent and redistributive streak and majority popular support until the end.

The real problem at the moment is that his movement has no natural leader to succeed him. Moreover, he was the ideological glue of the regime: it was his vision, his praxis, the drew the course of events. With him gone the ideological basis of the regime is subject to interpretation by contending personalities and factions within the Boliviarian movement. His designated Vice President, Nicolas Maduro, has no independent power base, much less broad support within the Party. He has a serious rival in Diosdado Cabello, a former Army colleague of Chavez’s who is the head of the National Assembly. Cabello has support within the military, whereas Maudro’s support comes from within the union movement and public bureaucracy. Yet neither is visibly stronger than the other, so the backroom maneuvering and in-fighting has begun in earnest (and in fact began when Chavez returned to Cuba for surgery last December).

To this can be added the opposition, which rallied around the figure of Henrique Caprilles Radonski in the October 2012 elections that saw Chavez elected for the fourth time. A presidential election is supposed to be held 30 days  after the public announcement of Chavez’s death (March 5). Riding a wave of grief, unity and solidarity, Maduro is the favorite to win that election if he is a candidate. It will be interesting to see if Maduro can maintain his grip on power before or after the elections in the absence of support for his mandate, however electorally affirmed. One thing is certain: Maduro is no Chavez, and everyone knows that.

Caprilles might not run in the immediate elections so as to delegitimize them and allow the Boliviarian in-fighting to proceed unimpeded and without a common political enemy to focus on. Whatever happens over the short-term, the bigger question is whether the Boliviarian experiment can outlive its creator. Can there be Chavismo without Chavez? Given the dynamics at play within and without the Boliviarian regime, the odds are not entirely favorable.

For the time being we will be treated to the grand spectacle of a Venezuelan state funeral, where the streets will be awash in red and the dignitaries will include a who’s who of US adversaries and critics, Hollywood leftists and very few heads of state from the developed capitalist world. As for Chavez–will his afterlife smell of sulphur or of something more pleasant?

One of the most useful analytic constructs in social science is the so-called “great dichotomy.” The idea is to distill an argument into a series of either/or propositions for the purposes of explanatory clarity. The point is not to see the world in binary fashion, as if all matters of social import can be reduced to good/evil, black/white propositions. Instead, the idea is to break down the logical and epistemological sequence embedded as component parts in any particular argument, particularly those of a normative nature. One can then deduce the overall strength of the case being made based on the logical consistency of those parts.

Scholars understand that complex realities are not reducible to mere dichotomies. But using the great dichotomy as part of a methodological approach to social science helps separate that which is relatively binary in nature and that which is a bit more complex. For example, X kills B. One dichotomous question, answerable with a simple yes or no, would be “was X drunk at the time?” That in turn can help illuminate the question as to why X chose to kill, as in “X killed Y after he caught Y in bed with his partner after being out on the piss all night.” The follow-up question would then be “would he have killed if he was not drunk?” If the answer is “yes,” then alcohol is not a significant contributing or mitigating factor. Although there is more to that sorry tale, the use of a dichotomous approach allows focus to narrow on its more complex aspects. That is the stuff of social science explanation. The key is to understand that dichotomous approaches are analytic tools designed to get to the gist of an issue, but are not meant to accurately represent or explain by themselves a larger and more complex question. They help remove extraneous clutter and provide better backdrop clarity on a given issue.

In contrast, binary or dyadic simplification is the practice of reducing explanations of social phenomena to an either/or, good/bad, black/white proposition. Not only is this a practice that deviates from the original mathematical use. It is one that ignore complex realities and which can lead to the construction of false dichotomies that impede clear and rational understanding of the subject in question. The danger of binary simplification is that it not only provides easy answers to complex problems for the intellectually lazy or dishonest. It also provides them with easy enemies and scapegoats because it poses the dichotomy as a zero sum proposition: things that are bad in the world or with which they disagree are the result of some other’s actions, and those actions are inimical, dangerous or otherwise contrary to their preferred version of reality. Thus the “other” must be resisted, vilified and in some cases defeated.

The real sad part is that many people, perhaps most people, are prone to accept binary explanations for complex phenomena. Thus we hear things like “guns do not kill people, people do,” “if gays are allowed to marry than marriage means nothing,” “feminism destroyed the family unit and has made men into girly boy eunuchs,” “abortion is murder,” or “you are either with us or against us.” These are one-line explanations for multi-volume problems or, said differently, comic book answers to complex questions.

I am prompted to write this in light of some stupid remarks in our own comment threads and another one-liner that made the rounds in the aftermath of Mr. Prosser’s cretinous opinions about Muslims. The one-liner, which was bandied about on the comment threads of right-wing blogs as well as those of the NBR goes as follows: “Not all Muslims are terrorists but all terrorists are Muslims.”

I will not dwell on how ignorant that remark is. I will just point out that, among others, the IRA, the Oklahoma City bombers, the Red Army Faction, assorted Latin American guerrilla groups, Greek anarchists, the Tamil Tigers and–dare I say it–a host of non-Muslim governments practice terrorism on a regular and often sustained basis. Yet it is that binary simplification that allows people like Mr. Prosser to believe that actions such as banning Muslim (or presumably Muslim looking, whatever that is) men from boarding planes is the solution to the terrorist problem (and I should point out that the practice of using planes as guided missiles or blowing up commercial airliners did not start with Muslims).

What I find most interesting is that those most prone to adopting binary simplistic approaches to social explanation, to include the construction of false dichotomies in order to make their arguments, tend to inhabit the (dare I say dyadic?) extremes of the ideological spectrum. Those on the Left blame everything on corporate greed while those on the Right blame everything on socialism. White supremacists see evil advancing along racial lines, something that is reciprocated by those who think that only white people can be racist and the plight of non-whites is entirely the fault of white guys, colonial or modern. The arguments on each end blend together depending on the specific subject being addressed (such as arguments in NZ that Pakeha corporate elites or brown dole-bludging treaty troughers are the source of all ruin). In any case, their common bottom line is an absurd reductionism that poses the world in falsely dichotomous, binary terms.

Sadly, people can make a name for themselves by playing the binary simplification game. This is very evident in political blogs and the rhetoric of the ideological extreme. It also is a common tool for politicians of all stripes. The media gravitates to such people because it prefers simple sound bites and one-liners to complex explanations. After all, there is only so much information one can put into a 700 word story or 3 minute video spot. As a result, the practice of binary simplification becomes commonplace and widely accepted as expert commentary or even “truth.”

For a guy who lives in a multivariate universe in which multiple explanations compete for my understanding of what occurs to and around me, it is depressing to think that we are increasingly governed by those who trade in binary simplification and false dichotomies.

Then again, perhaps the beginning of  an explanation for that can itself be posed as a great dichotomy.

Richard Prosser’s xenophobic and bigoted remarks about Muslims (which are not racist, since he was targeting a religion, not an ethnic or racial group) has rightfully met with wide-spread opprobrium. More than a comment about Muslims, his remarks say a lot about him on several levels. Let’s just leave it at this: That he was prompted to air his views by having his pocket knife confiscated at an airport security gate, then actually took the time to write out his thoughts in a magazine op-ed, make it clear that somewhere in Aotearoa a village is missing its idiot, and that idiot has been found spending lots of time in the Beehive.

However, the current repudiation of his views has not always been as wide-spread, and in fact his appeal to negative Muslim stereotypes was, if not all the rage, widely accepted just ten years ago.

Consider that when Ahmed Zaoui attempted to seek political refuge in New Zealand in late 2002, his arrival was met with official alarm and a chorus of exactly the sort of xenophobic invective that Prosser has voiced. The Fifth Labour government branded him an “Islamicst” with ties to al-Qaeda, then worked with the SIS to manufacture a “terrorist” case against him in order to justify his indefinite detention and eventual expulsion. It even changed domestic spying laws and created new anti-terrorist legislation (both still on the books and enhanced by National) so as to counter the Islamicist threat. The SIS went so far as to claim in its 2005 annual report that local jihadis and their sympathizers were a serious threat to New Zealand, only to drop the claim entirely in the 2006 report.

Zaoui was not the only Arab who got the heavy treatment. In 2006 Rayed Mohammed Abdullah Ali, a Yemeni-Saud flight school student overstayer, was summarily deported and handed over to Saudi security officials after he was caught (apparently following a tip-off to Winston Peters from a member of the public related to Ardmore Flying School). Despite concerns about his fate once he was turned over to the Saudis, he disappeared after being placed in their custody. The Fifth Labour government, through then-Immigration Minister David Cunliffe, refused to comment on his whereabouts or well-being and did not seek assurances from the Saudis regarding his treatment. As a justification for his summary deportation under escort, the Fifth Labour government claimed that he was a threat to national security, with his alleged “crime” being that he briefly flatted and shared pilot training with one of the 9/11 hijackers. No evidence has been produced to suggest that Abdullah Ali was aware of, much less involved in, the 9/11 conspiracy. Yet in the eyes of the New Zealand authorities at the time, relying in part on disputed FBI reports, he was guilty by association.

Shortly after Zaoui’s arrival Winston Peters, who now says that there is an element of truth to Prosser’s remarks but that his choice of words was unwise, demanded that Zaoui be expelled forthwith and went on to say that the NZ Muslim community was a “hydra” with extremist cells within it. Along with NZ First, National supported Labour on the Zaoui matter. Only the Greens questioned the official narrative (and Keith Locke needs to be congratulated for his staunch defense of Zaoui’s rights). Eventually, and with the help of some steadfast supporters and a few critical media types, the courageous work of Deborah Manning, Richard McLeod and Rodney Harrison destroyed the government attempt to frame and scapegoat Mr. Zaoui. After nearly five years the case against Zaoui was withdrawn and he was set free (he now runs a kebab place on K Road). For a good documentary overview of the case, see here.

My point is that timing is everything when politicians choose to stereotype so-called “out” groups. Back then Islamophobia ran rampant and it was fine if not fashionable to Muslim-bash, which the Clark government did adroitly and with aplomb. It did so by being subtle in its talk and thorough and focused in its actions. It publicly maintained it had nothing against Muslims or Islam, yet ordered its security apparatus to increase its surveillance of Muslim males (something that is ongoing) and enacted draconian security legislation with an eye towards the purported Islamicist threat to NZ (although truth be told, it first tried to use its new anti-terrorist legislation against the Urewera 18, and we know how that turned out).

Today all of that is water under the bridge although the laws remain on the books. NZ Muslims are no more of a threat today then they were a decade ago, but with the exception of the usual right-wing fanatics ranting in the blogosphere, the public mood is largely relaxed on the issue of the danger to NZ posed by Islamic extremism. Most politicians understand that even in election years scapegoating Muslims is now a losing campaign strategy. Thus Prosser is being made to wear a hair shirt over his contemporary remarks when he would have been applauded as a non-PC realist just a few years ago.

I would simply say that more than his stupid words, his timing if off. Politics is the art of hypocrisy disguised as righteousness, but the key to a successful disguise lies in the timing of the public posture. The Fifth Labour government timed its stereotyping just right, which allowed it to curry favor with its Western security partners in the anti-Islamic crusade by strengthening its anti-terrorism laws and internal security legislation. Zaoui was the precipitant and scapegoat used to that effect.

Prosser, on the other hand, is simply an uncouth political neophyte spouting rubbish at the wrong time. Had he made his remarks ten years ago he would have fared far better in the court of public and political opinion.

Woe be it for me to venture into the minefield of Maori politics on Waitangi Day. Yet the ructions around “Escortgate” at Te Tii Marae got me to thinking that perhaps there is more to the story than arguments within Ngapuhi and the inevitable displays of division that seem to mark the yearly event. At risk of stating the obvious, it is not just about different forms of identity politics.

Instead, what may be on display is the fundamental conflict between what might be called maori socialism and maori capitalism. By that I mean maori identity superimposed on a class base. Maori socialism is a view that is working class and lumpenproletarian in perspective, while Maori capitalism is propertied and bourgeois in orientation. The Hareweras and the Mana Party are a good examples of the former while the Maori Party and entities such as the so-called “Brown Table,” to say nothing of numerous trusts and boards, constitute examples of the latter. The conflict between them is not so much rooted in personalities, iwi and hapu (although there is clearly a strong element of that), but in fundamental differences in economic perspective and the proper approach to the Pakeha-dominated socio-economic and political status quo.

To be clear, I am not referring in this instance to pure forms of socialist or capitalist thought. Communal and egalitarian beliefs are as strongly represented in maori economics and society as are ownership and hierarchy. In the realm of Maori politics it seems that hybrid approaches rooted in one or the other ideological perspective have come to dominate political discourse. But the broad division between “Left” and “Right” seem fairly distinct.

The “militant” (although it is not truly that), “socialist” (although it is also not really that) approach is to largely reject the Pakeha rules of the game as given while working on what generously can be called a war of position strategy: raising consciousness amongst subaltern groups within whom lower class maori constitute the core around which issues of praxis are addressed. In this strategy alliances with Pakeha leftists are feasible because the ideological line vis a vis the common class enemy is roughly the same.

The “moderate” (phrased nicely) capitalist approach is one of pragmatic accommodation and incremental gains within the elite system as given. Alliance with Pakeha elites is possible given the division of potential spoils available in a system constructed by and for elites, but which increasingly has the potential to be colour and ethnicity-blind. Here the strategy is also one of a war of position, but in this case from within rather than from without.

Needless to say, there is some blurring between the two (e.g. Mana plays within the institutional rules of the political system and the Maori Party is not averse to relying on extra-institutional means of getting their point across). There are also significant agent-principal problems on both sides.

Even so, it seems that the main source of conflict within maoridom is grounded in class orientation and its corresponding strategic approach as much if not more than anything else. Put vulgarly in leftist terms, it is a conflict between the staunch and the sell-outs. Put bluntly in capitalist terms, it is a conflict between losers and realists.

From a practical standpoint, the underlying class differences are more difficult to resolve than other aspects of maori identity. It is in the Pakeha elite interest to keep things so.

Given my ignorance of Maori politics I could be wrong. I defer to Lew, Anita and more informed readers in any event. My intent is not to stir.  Instead, this post is written as an inquiry rather than a statement. Your views on the issue are therefore welcome.

Zac Guildford’s latest alcohol-fueled incident has been amply covered in the press, and the focus is on his problems with the drink. But there is another issue that the media have only briefly touched upon that is far more worrying than his drinking.That raises questions about what the New Zealand rugby authorities know or are doing about it.

Consider the fact that Guildford, a 23 year old well-paid professional rugby player and All Black to boot, is living in the house of a 43 year old man. One would think that a player in his circumstances could afford an apartment of his own. Perhaps he needed guidance as well as companionship. But the older flatmate in question is not a personal trainer, rugby coach, NZRU representative, his agent, an addiction specialist, mental health counselor, spiritual guru or a relative.

No, the flatmate, who Mr. Guildford has lived with for two years, is a TAB bookmaker. Apparently he specializes in harness racing and got to know Guildford through their mutual interest in horse racing. Regardless, the bottom line is that the bookie makes his money playing the odds on sport and Guildford happens to play at the pinnacle of a sport that is the national pastime. Odds-making depends on information. Information on professional sports is carefully managed, often regulated and therefore hard to come by, especially when it comes to precious national institutions like the All Blacks. In many countries professional athletes are barred from having any contact with gambling entities or bookmakers of any sort, or if allowed, under strictly supervised circumstances. Apparently that is not the case in NZ, or at least in Guilford’s case.

It gets worse.  Guildford is rumored to have a gambling addiction problem, and even his bookmaker buddy admits that the latest incident involved gambling as well as a drunken assault.

So lets recap what we know so far: an immature, young, alcohol and possible gambling addict professional athlete on New Zealand’s most revered sports team shares a house with a bookmaker who considers the athlete to be one of his best mates. They share a love of horse racing, which is also a love shared by the athlete’s jockey girlfriend.

This leads me to some questions. Is it me or is there not a potentially serious problem here? Do not the Crusaders and NZRU feel a touch uncomfortable with this triangle? Do they not consider the implications of having a reputed alcohol dependent gambling addict on their payroll living with a bookmaker while exchanging pillow talk with a jockey? Things like rugby training ground injuries, possible lineups, game strategies and formations and a host of other team intelligence is the stuff bookmakers live and dream for. Add to that the possibility of the casual exchange of information on horses, racing tactics and betting trends and one has the potential for manipulation of odds in a number of betting scenarios, with the common denominator being a talented but troubled professional athlete as the source of inside information. All of this against a backdrop in which organized crime has its hand in the gambling business.

I may just be a cynical doubter and everything about Mr. Guildford’s relationships with the bookmaker and jockey are above suspicion. The triangle could be fine except for Mr. Guildford’s drinking. However, methinks that alcohol issues are only part of the problem that is Zac Guildford. The issue may well be much larger and far more insidious than one man’s personal failures, which makes me wonder why the rugby authorities and mainstream press have avoided the gambling angle like the plague. It is not like the summer news cycle is jam-packed with hard story action.

Lets look at a worse case scenario: if it became known that at least one bookmaker has inside information on Guildford’s rugby teams and/or the ponies via his jockey friend, then a scandal of major proportions could well ensue. The trouble is that avoiding the issue does not make it go away, and if what I am wondering about proves to have a grain of truth–and I have no basis for ascertaining the truth either way–then the damage to NZ sports as well as the country’s reputation could well be immeasurable.

It is time a stakeholder addressed the issue of the exact nature of the relationship between the troubled rugby player, the jockey and the bookie.

The rejection of the 2013 draft constitution by the Baimimarama regime in Fiji (a constitution drafted by a panel of international jurists and partially funded by New Zealand), has led to speculation as to whether the promised 2014 elections will be held. What has not been mentioned in press coverage of the constitutional crisis is an end-game that is neither dictatorial or democratic: elections leading to a “guarded” democracy. In this analysis I outline some reasons why the prospect of a guarded democracy in Fiji should be considered to be very real.

Until I moved to New Zealand I had never encountered prejudice against red-headed people. I was red-headed and freckled as a youngster growing up in Latin America, and I never met anyone who had something negative to say about my complexion and hair color even though it is rare in Latin societies. When I went to the US to go to university, I never heard a disparaging word about so-called “gingas” even though I had a red-headed flat mate for two years (by that time my hair had turned auburn). In all of my adult life in the US prior to moving to NZ, living on both coasts and several states north, south and central, I never once heard one unpleasant word about red-heads.

All that changed when I got here. Not only did I begin to read and hear about assaults on red-heads, including a viscous verbal attack on twin 6 year old girls by a car full of thugs, but I began to read mean-spirited ginga jokes at places like Kiwiblog, whose owner seems to think that all jokes about red-heads is harmless good fun.

Then today I saw this: “Ginger Oxygen Thief Receives Natural Justice.” This is the title of a post done by the blogger known as Whaleoil. In the post he links to CCVT footage from the UK of an unprovoked attack on a red-headed young man that leaves him unconscious and with a broken jaw. In his first paragraph WO attempts to be funny at the expense of the victim, and in the last paragraph he tries to be funny while casually decrying the attack. The comments on the post are a  mix of people shocked at the post and those who think it is funny. Those who think the post is funny outnumber those who do not.

This is not the first time that WO has belittled and denigrated “gingas.” In fact, the post mentioned above has links to his previous offerings on the subject. For a guy who is increasingly treated by the mainstream media as an authoritative commentator, the level of prejudice displayed in these posts would seem to be terminally disqualifying. Yet it apparently is not, which indicates a level of acceptance of such views far beyond what I would have considered reasonable in a fair-minded society.

In any event I am astounded by this latest post, and more generally, at the belief that ginga jokes and abuse are OK. If we substituted the words “Jew,” “woman,” “black, “Maori,” “indian,” “chinese” or those for any number of other human traits for the word “ginga,” would such “jokes” be acceptable? Why is it that denigrating someone for an innate trait–that is, one that they have no control over and which they cannot change because it is genetically determined– considered acceptable in some instances and not others? Jokes about behavior, customs, styles etc. may be tasteless but could possibly justified in the minds of some as being about the choices people make. But jokes about that which is not a matter of choice? Why is that acceptable in any instance?

I find the type of attitude that thinks it is acceptable to insult and denigrate people on the basis of their innate traits to be abhorrent. I understand that WO prides himself as being a provocateur and likes to wind people up as part of his “shtick,” but his implicit condoning of violence against red-heads is beyond the pale. It is bigotry, pure and simple. More troublesome than WO’s attitude is the fact that he is not alone in his belief that red-heads are fair game for mean-spirited attacks. In fact, the denigration of “gingas” seems to be widespread in NZ, and although I have never seen it expressed by those on the Left, I assume that it is not exclusively a form of Right-wing prejudice.

I may have made reference to bigotry against red-heads in a long-forgotten previous post. But the nasty post by WO has brought the issue back to my attention. The issue is that no matter how much defenders of attitudes such as WO’s claim it is all harmless fun and nothing more than humor, it is at its core mean, discriminatory and contrary to the norms of fair treatment and equality that supposedly underpin democratic society. There is nothing funny about prejudice, however it is disguised and regardless of to whom it is directed.

Thus I have one simple question. Can someone be so kind as to explain to me why bigotry against red-heads is deemed acceptable in NZ?

Since it is the season to take stock and make predictions, I will join the self-absorbed blogging hordes in summarizing KP’s year (as opposed to pontificating about the 2012 universe or what will happen next year).

This was a year of slow retrenchment, which is a nice way of saying that we wrote many fewer posts and as a result have lost readers. We now average 200 or so a day (about 615,000 total unique views), with episodic upsurges when things get topical. For various very justified reasons my two blogging colleagues could not keep the pace of previous years (we are now approaching our fourth year anniversary). That left the bulk of posting to me, which given my interests and press of other business greatly reduced the scope of topics covered. As a result, we did not cover gender, Maori or NZ domestic political issues in the measure that we have before, so I presume that is where we lost the readership. My most fervent desire when it comes to blogging is that Anita and Lew will rejoin the fray. Their combined talents are too precious to remain unheard, although I completely understand why they need to tend to other things.

On the bright side we appear to have a dedicated cadre of serious and smart (and seriously smart) readers that keep us on our toes.

We banned one individual with very clear, uh, “issues” (and no, it is not redbaiter) for continually abusive trolling, and there is another person on final warning for what can be called nuisance trolling–the act of making a comment just to be snarky, flippant, or to wind people up. That is not helpful and violates the comments policy, so the person has been given a final warning before being banned.

Otherwise it was a year without highs or lows. There were no serious slanging matches like on the infamous Mutu thread last year, but other than Lew’s GC post, there were no major breakthroughs in the MSM or linked to other blogs (although mention should be made of Bryce Edwards’ occasional reference to this blog in his MSM “link-and-comment” articles as well as at his own blog, Liberation). We still get most of our traffic from NZ, with OZ and the US following. Our major referrers are Bowaley Road (thanks Chris), No Right Turn (thanks Malcom), Kiwiblog (thanks David), The Standard (thanks Lynn), Lew’s twitter feed, Facebook and the NZ Herald when Bryce mentions us. We get a fair bit of links from right-oriented blogs, so I take that as a sign that we may be small but are worth the opposition’s attention.

I could tell you a lot about the search terms that lead to us, but let’s just say that “Wendy Petrie’s breasts,” “your ass in jail” and “pink and blue things” are a constant. Go figure, but I am gonna blame Lew for that.

There is plenty of other data to mine but that would be overly self-indulgent.  So let me first wish my co-bloggers the best of the New Year in all aspects of their lives. Let me wish the readers just as much but without the personal interest. And let’s hope that KP can rebound and reinvigorate the political debates in Aotearoa in the lead-up to the 2014 elections.

Saudades pra o ano novo!