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Monday, March 21, 2011

The ‘Bigger Picture’ in the Middle East and the War in Libya


above: Many Libyan rebels and their supporters question intervention

In this article Tristan Ewins explores the complexities of the crisis in Libya, and the broader strategic issues that are driving 'great powers' in the Middle East, North Africa and elsewhere. Debate at Left Focus is welcome as always.

By Tristan Ewins, March 21st 2011

A week can make a great deal of difference in international politics. Whereas only a short time ago world leaders were ruling out any kind of direct intervention in Libya now ‘it’s on’: not only a flight exclusion zone, but cruise missiles and who knows what else…

World leaders behind the intervention are reminding us – as might be expected – that this is a violent and repressive government. Amnesty International in its 2010 report on Libya noted suppression of freedom of speech, and a great many “unresolved” “disappearances” going back to the 1970s, 1980s and 1990s”. Dissidents have been imprisoned, and corporal punishment has been enforced against women having sexual relations out of wedlock. http://www.amnesty.org/en/region/libya/report-2010

Many also feel strongly that the Lockerbie bombing of 1988 – with the deaths of 270 people - is an out-standing atrocity for which ultimately there was not justice.

Those of us with good memories, however, might also recall the litany of crimes of which Saddam Hussein was accused of; gross human rights abuses, war and mass murder -which were put forward as a rationale for war. Opponents of war questioned this rationale for intervention then; and we should be looking more deeply now also.

It’s interesting that the case for intervention against Libya is being made at the same time as severe repression in Bahrain and Yemen; with Saudi intervention in Bahrain to prop up minority Sunni rule (mainly the Bahraini royal family), and a massacre of at least 40 protestors in Yemen – with some claiming more. http://globalvoicesonline.org/2011/03/19/yemen-friday-massacre-in-sanaa/

And yet there is no call for Western intervention in defence of human rights for either Yemen or Bahrain.

To understand what motivates the ‘Great Powers’ – and why there is support for rebels in Libya but not elsewhere - it’s probably appropriate to consider the realities of geo-politics; and the broader strategic outlook in the region.

The US government is making the necessary noises about democracy and human rights with Yemen and Bahrain to maintain legitimacy - just as occurred with Egypt.

But behind the scenes there is desperate and ruthless geo-politics on all sides. The US and its allies such as Saudi Arabia and the Yemeni government are concerned about Al Qaeda influence in Yemen; or the prospect that human rights for the Shia majority in Bahrain could lead to co-operation with the Shia-dominated Iranian theocracy – threatening the status of the US 5th Fleet based there.

Strategists will be considering the possible future scenario of war with Iran and other countries. They will be considering the importance of possible sea-lane ‘chokepoints’ such as the Straits of Hormuz; the Suez Canal in Egypt; and the Bab of Mandeb – a strategically crucial strait located between Yemen and the Arabian peninsula.

Even Afghanistan has been mooted as a possible future ‘transport and logistical hub’; and apart from the poppy trade the mountainous country is highly defendable in the sense of a conventional conflict. Afghanistan also borders Iran and could provide access to Russia via Central Asia. In a future war Afghanistan could be crucial – as the Russians realised in the 1980s.

After Kosovo’s secession from Slavic-dominated Serbia was recognised by much of what is referred to as ‘the international community’ largely Slavic Russia was appalled at this move against what it sees as a ‘natural ally’. Then in 2008 Russia invaded Georgia; ostensibly to achieve self-determination for the Ossetian minority.

In the ‘global game’ it is within the realm of reasonable conjecture to suppose that –in part – Russian intervention against Western-allied Georgia was a ‘tit-for-tat’ reprisal for the Kosovo secession and Western recognition thereof. (although in the context of acting upon a genuine sentiment amongst Ossetians in the region; as was the case with NATO intervention in Kosovo as well) 

It’s also within the realm of reasonable speculation that Russian arms trade with Iran may have been a ‘bargaining chip’ in the context of the implementation of the proposed ‘missile defence shield’ in Eastern Europe; and Russia’s fear of a downgrading of its own nuclear deterrent.

A similar logic may be at play in the Middle-East and North Africa today with the demise of Western-friendly authoritarian governments in Egypt and elsewhere. But the strategic significance of Egypt, Bahrain and Yemen in particular means a lot more is at stake than many realise.

The Iranians are certainly sceptical about the justification for intervention in Libya being made by the Americans, British, French and others under the banner of UN Security Council support.
Kaveh L. Afrasiabi from ‘Iran Review’ has observed that:

“ There is a growing sentiment in Tehran that the West's real intention in Libya is to capitalize on Gaddafi's repressive gains over the opposition to generate a region-wide counter-momentum vis-a-vis the popular upsurge throughout the Arab world that has destabilized the US-backed status quo.” http://www.iranreview.org/content/Documents/Iran_in_a_Dilemma_over_Libya.htm


There may be some truth in this. Importantly, though, Gaddafi and the Egyptian 'Muslim Brotherhood' - which rose to prominence with the struggle in Egypt - don’t seem to see ‘eye to eye’. Gaddafi has repressed the organisation in Libya in the past, and leading Muslim Brotherhood ClericYusuf al-Qaradawi has called for Gaddafi to be shot: put to death. http://news.yahoo.com/s/afp/20110221/wl_mideast_afp/libyapoliticsunrestfatwa_20110221212046

So what’s going on in Libya specifically doesn’t look like ‘retaliation’ in that context. But again – lack of US and UN intervention in Bahrain and Yemen show that strategic questions are taking precedence over immediate issues of human rights.

As to the question what strategically is at stake in Libya: It accounts for 12% of EU oil imports, and 27% of oil imports for Italy. Sustained instability could be costly for Europe, but removal of Gaddafi could provide some long term advantage.. http://www.ekemeuroenergy.org/en/index.php?option=com_content&view=article&id=175:strategic-destabilization-the-arab-revolt-reaches-opecs-largest-african-producer&catid=35:analyses&Itemid=57

More detail on Libya specifically…

From a position where military intervention was ruled out just a short time ago, at this point events in Libya are developing rapidly, and is there is no telling where the intervention may lead..
On March 13th ‘NineMSN’ reported on the Arab League’s decision to recognise the rebel movement as the true representatives of the Libyan people, calling on Gaddafi to “relinquish power immediately”. http://news.ninemsn.com.au/world/8223169/gaddafi-steps-up-attacks-on-rebels

Syria opposed this stance, perhaps fearing intervention against its own interests in the future. http://www.allvoices.com/contributed-news/8463407-syria-rejects-the-decision-of-the-arab-about-preventing-fly-to-libya

And the United Nations Security Council has more recently supported a ‘No Fly Zone’ and intervention in the civil war. http://www.smh.com.au/world/military-strikes-on-libya-within-hours-20110318-1bzii.html

Finally, on March 18th

“the UN Security Council passed a vote calling for "all necessary measures" against forces loyal to the Libyan leader”; “with abstentions from Russia, China, Brazil, Germany and India.” http://www.smh.com.au/world/military-strikes-on-libya-within-hours-20110318-1bzii.html

Earlier on in the crisis the US government and others were reluctant to use the term ‘civil war’ to describe what was going on in Libya. The conflict was depicted as nothing but pure aggression by the Libyan government and armed forces against its own defenceless civilians. While the Libyan government’s repression and violence against its own people is part of the picture, though, it is not the entire picture. As events have progressed it has became clear that civil war and revolution are the context of the Libyan crisis.

Two positions on this question are emerging on the Australian Left.

Recently at ‘Left Focus’, Benjamin Solah from ‘Socialist Alternative’ expressed no doubt that the Libyan government was using “helicopters and fighter jets to bomb and mow down demonstrators”. But regardless of this, Solah argued against intervention on the grounds it would make matters worse. (along the lines of the Iraq war and occupation; with the terror, underground power struggle and strife which followed) Similar positions are held by many on the Australian revolutionary-Marxist Left; although it would probably be incorrect to suppose this outlook is homogenous amongst those of that disposition. http://leftfocus.blogspot.com/2011/03/libya-why-western-intervention-is.html

Meanwhile Guy Rundle at ‘Crikey’ contends there has arisen on what he calls the “Anti-Imperialist Left’ “an utter contradiction…between solidarity and anti-imperialism” where “what is unquestionably a revolution is [portrayed as] asking for ‘imperial’ support.” Rundle also notes the Bolsheviks’ dealing with the Germans during the First World War as proof anti-Imperialist politics have never been simple. http://blogs.crikey.com.au/thestump/2011/03/17/libya-and-the-anti-imperialist-left-2-ideology-audacity-and-revolution/

In light of such arguments, should we be for or against intervention?

To begin with, considering the stakes, how much do we know about the conflict?;

In the author’s home country Australia it seems there has been little or no detailed treatment of who the Libyan rebels really are. Looking elsewhere, such information was also hard to find.

Eventually the author found a passage in the New York Times depicting the rebel leadership as “a council of opposition leaders made up of lawyers, academics, judges and other prominent figures”. http://www.nytimes.com/2011/03/02/world/africa/02libya.html?_r=1

Another writer mentions an organisation called the “Libyan National Council” which is organising resistance in the east. http://search.japantimes.co.jp/cgi-bin/eo20110316gd.html

George Joffe - writing for the BBC - mentions opposition from “Tribal leaders from the Sa'adi tribes, traditionally hostile to the Gaddafi regime” as well as defection from army units. http://www.bbc.co.uk/news/mobile/world-africa-12612169

Finally of interest is a website belonging to a group calling itself the ‘Libyan Youth Movement’. http://feb17.info/editorials/gaddafi-war-crimes-his-propaganda-our-media-dictator-games-repeat/

Further questions include how the rebels have organised and prepared for this day. Weapons and training appear to have been provided by defecting military units. Were the rebels receiving outside help, and if so from who? And if agreements were made in that context: to what effect?

As Rundle’s mention of Bolshevik dealings with the German government in World War One shows, revolutionary politics – and politics more generally – is a messy business. Outside support on its own does not invalidate an uprising. But these questions highlight issues of what kind of consequences may ensue should the rebels succeed, or should Gaddafi prevail.

There’s also been very little (perhaps nothing?) in the way of footage of the recent atrocities Gaddafi and his forces are accused of. It’s argued there was a media blackout. And lack of footage is not to say the alleged atrocities against peaceful demonstrators did not occur. The ‘outside world’, after all, knew nothing of Nazi death camps for years. But with the Iraq conflict, and the lies systemically and deliberately told there to provide a rationale for war, it’s difficult to simply take claims of atrocities in Libya purely at face-value without an element of doubt. The lesson for Western powers: Do not be loose with the truth as events such as may be taking place today underscore the importance of keeping the trust and good faith of the public: that there is not such doubt when action genuinely needs to be taken.

Importantly, one website noted that:

“Groups including Amnesty International and Human Rights Watch have been gathering evidence of human rights abuses, citing sudden arrests, disappearances and deliberate killings of people who joined anti-Gaddafi protests as well as casual onlookers and migrant workers.” http://www.bulawayo24.com/index-id-news-sc-national-byo-2105-article-Benghazi+at+great+risk+%5Batrocities%5D,+if+recaptured+by+Muammar+Gaddafi's+troops.html

But in the context of war – with governments acting in our name - we need specifics, and we need them now.

In the author’s home country, Australia, much of the media has moved to mobilise public opinion against the Libyan government and in favour of intervention. It is reasonable to assume the same is the case in the United States and elsewhere as well.

Generally it is assumed that western liberal democracies benefit from pluralism and liberty; and that in the public sphere these influences provide ‘checks and balances’ that help ensure expression of different views, and scrutiny of untruths. While this is theoretically and practically possible – and more the case in liberal democracies than in fascist, authoritarian or Stalinist regimes - this is not to say there is not widespread manipulation of the media in liberal democracies. The power of figures such as Murdoch and Berlusconi illustrate the point; as does the power of figures such as James Packer and Kerry Stokes in Australia.

It is proper for the media in Australia and elsewhere to be pursuing questions of massacres and human rights abuses in Libya. But this does not mean the media should forsake standards, inclusive and contextual representation of viewpoints, and accuracy and objectivity - on the basis of ‘the ends justifying the means’. And where there is lack of competition and real diversity in the mass media ‘mobilisation of public opinion’ is especially problematic. Once the precedent is set, loss of such standards in the mass media becomes a vicious and self-perpetuating circle which undermines the very foundations – and hence legitimacy and meaningful practice- of liberal and pluralist democracy.

In any intervention many lives will be lost. The bottom line is that when our governments act in our name in support of military intervention it is appropriate that we be given the full truth: that we have all the knowledge we need to make a fully-informed choice what policies we support as citizens.

We should be demanding consistency elsewhere as well – with human rights abuses in Bahrain and Yemen. And even if strategic considerations are real, we should nonetheless be demanding the true and full story when it comes to Western interventions in Afghanistan, the Middle East, North Africa and elsewhere. At this point it does not appear that the United States and other Western powers are even attempting to balance and reconcile strategic and human rights questions in Bahrain, Yemen and elsewhere.

The choices we are faced with

Assuming we were in possession of all the relevant information, though, that’s not to say everyone would be agreed as to what course of action was right.

In this context of ‘specific likely consequences’ a ‘general law’ against intervention ‘anywhere’ or ‘ever’ doesn’t make sense. The bottom-line has to be a realistic and thorough consideration of what the likely consequences of intervening really are – as opposed to the consequences of not intervening.

Should Gaddafi be overthrown, is it likely we will see another ‘dirty war’ with retribution and counter-retribution? Perhaps we should consider the sectarian strife in post-war Iraq. Although it’s notable that
Libya is overwhelmingly Sunni, so it is a significantly different situation.

And should intervention be withdrawn and the rebels fail - what kind of reprisals will the Libyan government make?

Further: if the United States and/or other powers become involved on the ground, what is the threat of ‘mission creep’ derailing the rebels’ objectives anyway? (See: Tom Bramble, also from ‘Socialist Alternative’: http://www.sa.org.au/index.php?option=com_content&view=article&id=3144:a-response-to-guy-rundle-all-the-way-with-the-usa&catid=216:imperialism-and-war&Itemid=219 )

And if the rebels do succeed is it likely the cause of human rights and liberty will be advanced?; Or over the long term - will one authoritarian government be replaced with another? In the context of an ensuing underground ‘dirty war’ is any other outcome possible?

Finally: Even if Gaddafi is a despot and a murderer: can more innocent lives be saved in the long term through compromise rather than war? If Gaddafi anticipates that compromise or defeat will ultimately see him and his inner circle at the Hague – or executed like Saddam Hussein - it’s likely he won’t be of a mind to negotiate. But a compromise solution could aim for inclusion of all the various tribes and other interests in Libyan society.

If we can avoid a descent in Libya into terror and dirty war, we need to act in the genuine interests of the Libyan people. But the first step in making such a decision is for the United States and its European and Arab allies – as well as for the mass media - to be open, upfront and thorough in presenting us with the facts. And arguments for war or intervention need be tested in the context of presentation of diverse viewpoints. So far that has not happened.

Tristan Ewins is a freelance writer and liberal socialist based in Melbourne, Australia. He maintains and publishes the 'Left Focus' blog

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Sunday, March 13, 2011

The mining tax could have paid for the ASU community sector wage claim


In this week's contribution labour movement activist Sarah Howe considers the claim by the ASU (Australian Services Union) for fair pay in the community services sector.  The sector involves mainly women workers, and the union is arguing underpayment is effectively discrimination.   Many are pointing to the potential cost of implementing equal pay, but Howe argues that if the 'Resource Super Profits Tax' (RSPT) had been implemented in its original form - money would not have been a problem.

By Sarah Howe, March 9th 2011

As the media has widely reported, the Australian Services Union is currently running a test case through Fair Work Australia seeking pay rises of between 14 and 50 per cent for about 200,000 mostly women workers in the social and community services sector.

The union wage claim is well deserved-with the media and submissions to Fair Work Australia pointing out that professional front line workers such as non-profit housing support workers are often receiving as little as $18 for extremely qualified and stressful jobs. The importance of the community sector to the health of Australian society and economy can’t be emphasized enough.

The ASU campaign for equal pay for community sector workers (and the growing significance of the sector to the economy) should be seen in the context of the move by Australian government to adopt the UK Blair government model of implementing more engaged, ‘joined up’ and networked approaches to governance and policy-making in recent years- particularly in relation to social policy. This trend has led to planning and service delivery increasingly being devolved to the so called ‘third sector’ (or the community sector). This sector is made up of organizations that are not-for-profit and non-government in diverse industry sectors and is increasingly doing the work traditionally done by government departments and authorities.

In Victoria, the Bracks Governments core social policy document in 1995- A Fairer Victoria: Creating opportunity and addressing disadvantage - aimed to tackle poverty and disadvantage had a strong emphasis on ‘building stronger communities’(Victorian Government: 2005). The community building strategy in this policy often has given responsibility to the community sector to plan and implement social policy outcomes, for instance with urban renewal programs. This is certainly the case in the Carlton context, where I work overseeing an employment program assisting newly arrived refugees into jobs.

In practice today, the community sector now both plans place based social services as well as delivering services on the ground-sometimes with the help of Federal, State and Local Government grants. However, despite the responsibility given to the community sector, significant investment is now required.

The negative view of the Blair model argues that ‘local self help, volunteering and social entrepreneurship are no alternative to progressive state and national tax, income security, service delivery and labour market policies needed to create the conditions for broad and sustainable reductions in poverty, inequality and social exclusion’(quoted in Wiseman, J: 2006).

‘No amount of local community capacity building can substitute for long term investment in core public infrastructure of schools, hospitals, health centers, housing, transport, parks and meeting places that can provide the real foundations for resilient and healthy communities’ (Wiseman, J: 2006 ).

Social services are in high demand, but often woefully under-funded. In my work, I am currently establishing an occasional childcare service to support housing commission residents look for work in Carlton. Yesterday I inspected a similar service managed by a not for profit agency in Broadmeadows. The Broadmeadows service assists newly arrived migrants study English at a location close to their children.

The Manager of the service told me how difficult it was to run the childcare centre, off a low funding base - including paying the current award wages. As we walked to the childcare centre, she joked that they call it the Hawke building- it was paid for under the 1990’s Federal Government capital grants scheme. This scheme does not exist now. Many parents wish it did, as childcare shortages are legendary, and the Local Government and community sector are struggling to provide these vital social services to families in the community. These services are critical for women seeking to re-enter the workforce.

The Federal Government’s response to this investment shortfall is to continually reiterate its desire to ensure fiscal sustainability and return the budget to surplus. In relation to the ASU wage claim, the initial response by the Federal Government was to say that any additional wage costs would come at the expense of other government funded services (Commonwealth Government in The Australian: 2010).

However, in December 2010, the Federal Government at the instigation of the PM intervened to clarify that Fair Work Australia should not award or discount equal remuneration because of the potential impact on the Commonwealth - however despite this reassurance, not much detail was provided on how the wage claim or ongoing capital investment costs of the sector would be met in the future.

While the Federal Government clarification is a positive development for the wage claim, I agree with Kerryn Williams’s recent article in Green Left Weekly in arguing that mining company BHP Billiton’s $10.5 billion profit for the second half of 2010 ‘highlights the shameless greed of those making a fortune out of Australia’s valuable resources’ and underscores the loss for social policy associated with the enormous reduction in revenue associated with the watered down Minerals Resource Rent Tax (MRRT). Recent Treasury estimates indicate that the MRRT will reduce the original RSPT’s 40% tax to just 30%, and will bring in well under half the revenue (Williams: 2011).

“The original tax was supposed to raise about $99 billion starting from the 2012-13 financial year until 2020-21. But it now looks like this figure will be only $38.5 billion. That’s $60.5 billion that could have been spent on health care, education or the shift to renewable energy” (Williams: 2011).

We could add to Williams list of social policy funding needs- the costs of urgently needed community infrastructure and labor costs (the wages bill from the ASU case estimated conservatively to be worth Victorian tax payers $200 million and at the most $1.7 billion over four years). In the absence of reform of the taxation system, the phased in strategy for labor cost increases will have to suffice.

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References:

The Australian, ‘Government warns on women's pay rises’ November 19th, 2010

The Age, Equal pay case could cost Victoria $1.7bn, February 2, 2011

Wiseman, J. ‘Local Heroes: Learning from Recent Community Strengthening Initiatives in Victoria’, Australian Journal of Public Administration, Vol. 65, No. 2, June 2006, pp. 95-107

Williams, K, Mining profits reveal true greed, Green Left Weekly, March 6th, 2011.

Sunday, March 6, 2011

Libya - Why Western Intervention is Counter to Democracy

above: full scale civil war is developing in Libya; But Benjamin Solah is against intervention...

In this week's submission to 'Left Focus' radical horror author Benjamin Solah gives his views on how Western intervention in Libya could actually worsen the plight of the Libyan people - rather than free them from oppression. As usual debate is welcome!

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The wave of revolution across the Arab world continues to spread faster than most of us can possibly keep up with, with protests continuing in Tunisia and Egypt as well as Libya, Bahrain, Oman, Saudi Arabia, Iran, Iraq, among other countries – and even beyond the Arab world. Even states in the US like Wisconsin are fighting their governments and citing inspiration from Egypt.

But one of the key fronts in the battle for mass democracy is Libya, where Gaddafi’s hold on power is being defended with some of the most extreme violence we’ve had reports of; he’s even used helicopters and fighter jets to bomb and mow down demonstrators, but it’s a testament to those who are fighting that not even this will stop them and it is their actions that will inevitably decide Gaddafi’s fate. It will be them, and not some outside force. I wanted to respond to some of the calls for US (or UN, Western, or any outside) intervention into Libya and why this would be a grave mistake for anyone who supports the Libyan revolution.

US Secretary of State (and no friend of mass democracy) Hilary Clinton has indicated that the US is leaving open a number of options in dealing with Libya as if it’s their fight, and the Navy have positioned aircraft carriers and other military vessels in the Red Sea and other locations around Libya. With sanctions now in place, the UN, NATO and other imperialist forces are discussing what to do. And I am opposed to any involvement from them whatsoever.

There are supporters of the revolts on Twitter that support intervention from these forces, but it is a grave mistake to support such things. Iraq is a clear example of what ‘democracy’ from the US means and it does not mean an end to violence. Have people forgotten about Iraq? Did they forget the millions killed by US troops? Did they forget that as soon as the US invaded it actually resulted in a surge of support for Saddam’s regime as people united against the US? There have even been protests in Iraq in the last few weeks that have been put down by US troops still stationed in the country, despite Obama’s façade of a withdrawal.

There is a very stark difference between ‘democracy’ in Iraq via the US military and democracy in Egypt by the masses of Egyptians themselves. It is only the masses that can liberate themselves. And an intervention from the West would not only destroy that, but also destroy more lives instead of saving them. Egypt proved that the people of the Arab world don’t need the US, that they can do it themselves, and do a damn better job. This is because of the power of mass struggle, as well as the working-class halting production, but also because their fight for democracy is genuine. The kind of democracy the US promises is a joke. The US has backed and continues to back dictators in the region such as Mubarak, have armed police and army forces trying to put down revolts, and only seem to remove their support when it looks like their ‘bastard’ is losing. When there are images of Egyptians holding tear gas canisters reading ‘Made in the USA’ you really have to wonder how anyone can think they’re a benevolent force in the region.

And this applies to not only the US, but other Western powers like NATO and the UN as well. The colour of the helmet or the banner the troops fight under changes nothing about the role they play, and foreign troops will always go into a country based on the interests of those powers not the people they claim to be saving. The fact that America’s mission in the Middle East failed, but Egyptians got rid of a dictator in just over two weeks makes the US not only irrelevant but counter-productive to any progressive change in the region, and so any attempts to back or support revolts after changing sides is an attempt to restore the false image of the US as a force for good.

Rather than the US, a much stronger force to end the violence and bring down Gaddafi quickly, is the power of the working class. After the people occupied Tahrir Square for two weeks, it was the workers in Egypt that dealt Mubarak his final blow. After three days of striking and production grinding to a halt, Mubarak could not hold on any longer.

In Libya, moving the struggle into the workplaces could be decisive not only because it would halt the flow or profits to the regime, but suppressing the struggle becomes much harder. It’s easy for them to mow down demonstrators in the streets, but if the struggle is inside factories and infrastructure owned by the Libyan state critical to the running of the economy, Gaddafi can’t exactly just bomb those to the ground or he would hurt himself.

It is clear that the Libyan people do not want and also need no involvement from the outside. The people of the Middle want no such thing either. The US and its allies need to remove all support for dictators in the region and get out of region completely. This fight is not theirs: it is the fight of the people using the power of the masses to turn the world upside down. And the role of the working-class in the Arab world is the key to bringing down these tyrants quickly and in the least violent way possible.


Benjamin Solah is a self-described ‘Marxist Horror Writer’ combining his love of horror’s dark aesthetic and his world view of revolutionary socialism. This article was originally published at his personal blog, ‘Blood and Barricades’; see: http://www.benjaminsolah.com/index.php

Sunday, February 27, 2011

Labor Culture at a Senior and a Student Level


above: what's wrong with ALP culture?

Nb: the following is an intervention regarding the culture of organised factions on the Left and Right of the Australian Labor Party. (ALP) It considers the perspective of student politics and the observances the author made when he was involved in that context many years ago. But all the observations are of relevance for the broader labour movement and ALP as well…

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By Tristan Ewins

Rivalry between the factions in the Australian Labor Party (ALP) often gets in the way of productive dialogue on issues, values and strategies. Early on young Labor activists are encouraged to become part of an almost 'tribal' culture. The result is entrenched and inflexible positions and rivalries; a lack of engagement.

But along the way in the 1980s and 90s Labor 'lost the plot'. Some leading parliamentary figures from the ALP Right painted a picture of the Left as stuck in a ‘state socialist rut’. According to this interpretation anything apart from the most minimalist position on the role of the state left one branded a ‘statist’. But in the 80s and 90s it was the traditions of mainstream social democracy that the party lost sight of. Privatisation and tax cuts became ‘the answer to everything’, and gradually – over many years – the party lost sight of its commitment to a mixed economy; a fair labour market & the dignity of labour; a fair tax system and social wage – based on principles of social justice, compassion and redistribution.

For my own part there is also today a commitment to economic democracy, participatory media, liberal education and active citizenship – But I want to focus here on the way Labor traditions and identity were ‘emptied out’ – including in the Left.

Today the Left is also losing sight of past values and traditions: and a mix of liberal multiculturalism and equal opportunity – while important – are not enough to fill the void. The electoral challenge posed by the Greens, and their mobilisation of an important part of Labor’s traditional membership and electoral support bases are making some sit up and take notice – but there is little recognition of the need to reclaim our traditions and values in response.

And yes Labor does need to balance an electoral support base involving more internal contradictions than do the Greens; but we have all but walked away from most issues of social and distributive justice, including the class interests of our core supporters.

ALP National Conference is still highly-stage-managed and considered non-binding, and there is little scope for real grassroots mobilisation and influence despite any rhetoric to the contrary. The Labor grassroots are withering as attempts to control the tenor of debate leave many disillusioned, sidelined, frustrated.

To begin, we might like to start making a changes at the level of student politics. Being a PhD student I think I’m in a position to put some positions based on past experience in the 1990s. So many people learn the ‘factional ropes’ of patronage and tribalism early on.  The intensity of the 'tribal' influence is used to discipline factional and sub-factional support bases.  This culture is fostered at the expense of grassroots activism and engagement on the level of ideas between ordinary members across factional lines.

To promote a shift in culture at the senior party level, at a grassroots and student level – across factional lines - we need to develop an activist culture; a culture of engagement; a culture which draws from Labor’s social democratic, social liberal and democratic socialist values and traditions. And we need a vision for social justice that is deeper than educational equal opportunity. (valid but on its own not enough) But by reproducing the culture of tribalism and patronage we instead often become part of the problem.

A good place to start bridging the gap between the factions is to encourage rigorous debate on values; but also a realistic appraisal of how such values might be applied in policy, and in various levels of mobilisation in the party, the broader labour movement, and other social movements.

The commitment of the Labor student Left to free education is often put forward as a defining distinction between they and Student Unity. (ie: the relatively right-wing faction) In terms of values – providing free education is an admirable objective. Education – after all - is more than a commodity.

Assuming the ambition of progressively broadening the tax base by as much as 1.5% of GDP over the course of each term of reforming Labor government, though – with the aim of improving the social wage – what are our priorities?; How much can we achieve, and how soon?

As well as free education, then, we have welfare reform for the unemployed, the aged and the disabled; a National Disability Insurance Scheme for both recipients and carers; provision of quality Aged Care for all with the need; investment in public primary and secondary education; investment in public housing with the aim of boosting supply and making home ownership affordable again…

Then there’s the need to make water and energy affordable for all. (possibly involving strategic re-socialisation) And there’s dental care, the mental health crisis, ‘closing the gap’ for indigenous peoples, and tackling climate change – including through investment in renewable energy and public transport, and through smart urban planning.

And there’s the claim by women unionists in the community services sector for fair pay, and against effective gender discrimination in the labour market. Reform here in the community and public sectors would involve a serious amount of money.

Even with an inflow of approximately $15 billion of new revenue every year (in the context of an economy worth well over $1 trillion) we couldn’t achieve all of this in one term of Labor government. We could only achieve all of this over the long term; with sustained reform of tax and the social wage. (Although there’s an awful lot we COULD achieve with that kind of money as well!!)

That said – assuming all these priorities – what kind of policies for reform in higher education are achievable – desirable in the ‘big picture’ of a medium to long term vision for reform? And where do we begin the journey – ‘right here and now’? When we consider competing priorities – for instance the indignity and suffering experienced by many in Aged Care – it is clear that some issues take precedence.

Instead of free education ‘right here’ ‘right now’ the Student/Youth Allowance is a critical area. The insufficient nature of the payment forces students to take up part-time work; and this can detract from studies – in which the community and individual students have made an investment. So increasing the Student Allowance is critical.

Then there’s HECS. HECS was originally introduced to finance a massive expansion of higher education. But since its original incarnation it has become ever more regressive. Repayment thresholds have gradually lowered in relative terms – and regardless of any real financial gain in the labour market. And the level of student contributions has also spiralled out of control beyond that imagined by those who originally established the policy.

On the other hand – HECS is like “a tax you have without having a tax”. Structured correctly, it could have the same effect as progressive taxation; while slow and strategic increases in progressive taxation elsewhere could fund other crucial priorities. So it’s the tiers, thresholds, and level of contributions that need reform for the here and now – rather than an absolute withdrawal of the entire policy.

These are the kind of areas where we need dialogue ‘across factional lines’. Movement on these fronts isn't likely without a change in party culture; and that means we need figures in Unity to take the lead in changing our agenda and culture as well as figures in the Left. And we need to start from the premises that we are all in that spectrum that ranges from Centre-Left to Left; and in this we have common purpose.

We also need recognise that electoralism alone is not sufficient. What is needed is ‘movement politics’: mobilising a cross section of social forces - unions, progressive parties, social movements and lobby groups -in support of a reform agenda.

So ‘right from the word go’ we need to recognise that back-room deals and back-stabbing are not going to deliver reform. A disciplined alliance of party activists, social movements, lobby groups and organised labour on the broad Left/Centre-Left need to co-ordinate their cultural and electoral efforts with a shared long-term plan for reform until all joint aims are achieved via mobilisation and solidarity.

Consider for a moment at the student-political level in Australia - What’s really most important in the big picture, then?: This cultural struggle or ‘who gets NUS (National Union of Students) President’? That I even have to pose that question is indicative of the problem that demands the attention of us all…

Tristan Ewins is a PhD student, freelance writer, and veteran ALP activist; He maintains this - the 'Left Focus' blog

Sunday, January 30, 2011

What our Fathers did not tell us about the Economy– Economic liberalism is post-Soviet Russia

above: 'progress' in the new Russia

In this submission by Russian political economist, Boris Anisimov (translated from Russian to English), the author considers the pitfalls of economically liberal capitalism as experienced in post-Soviet Russia. While command economies could be deeply flawed, it seems the indecent haste in adopting a Western economic model in Russia has involved an abandonment of those insights from the Marxist tradition which remain crucial. For our Western readers this contribution provides an appreciation of a perspective we are rarely exposed to…

by Boris Anisimov   (edited by Tristan Ewins)

In my previous articles, I have expressed quite unequivocally my indignation that market fundamentalism had been accepted by emerging economies as the official economic ideology. As years go by, it becomes evident that the reckless opening of developing, and thus still fragile economies was serving the purposes of countries which have many decades, if not centuries, of deliberate protectionism to their names.

For this post, I am going take Russia, my home country, as an example again, but what I am going to address now relates to many developing countries and even to some of the developed ones.

The younger post-Soviet generations raised by TV commercials and glossy magazines appear to be at a loss as to what is happening to the global economy. As they grow older, a large portion of them begins to realize that, with the way things are going economically, their adult life will be no picnic at all. The temporary euphoria of the boom years has faded, but no new hope has come. Most young people do not see any light at the end of the tunnel, and this hopelessness acts as nationalist street gangs' best recruiter.

The economic reality does not match the elegant theories meticulously translated from English-language economics books. Economists recognize the existence of the massive gap between the prosperity of the economically-advanced countries, and the utter devastation of their own economy. But as they attempt to identify the underlying causes, they fall back on the same theories that made that devastation possible in the first place. The years of new post-communist economic propaganda have certainly left a trace, but very few realize that this trace only leads to destitution.

The ironic thing is that some of the answers to today’s most fundamental economic questions these young people of my generation might have can be found in what our fathers eagerly put on the shelf of history: i.e. political economy. In Soviet times, political economy was sometimes compromised in supporting the government of the day - and, as a result, was unsuitable for meaningful economic analysis. The numerous economic crimes committed in its name have discredited political economy in Russia. The desire for material possessions and comfort combined with unceasing, aggressive advertisement of consumerism fostered a new culture unwilling to heed the lessons of the past.

In that frenzied strive to pull themselves out of poverty and despair, our fathers forgot to pass to us the knowledge that they did possess back then, but considered irrelevant because they did not know how to improve their lives with it.

So these are some of the things about the economy that our fathers did know but did not tell us:

1. Our fathers did not tell us that no market can be 100% free. Even though, with reservations, some markets back in the days were close to that ideal, most economies have never become free of any governmental influence. Look at 19th-century Britain, considered by some the “cradle of free-market capitalism”, where the government did not interfere with market forces directly, but was the generator of a significant portion of the solvent demand on local markets by means of spending up to a quarter of the country’s budget on the famous Royal Navy. I hope it is clear what financed numerous orders with local entrepreneurs and craftsmen and made up for embezzlements by navy and treasury officials – the plundering of colonies did.


2. Our fathers did not tell us that market is only a mechanism for distribution of material and financial resources within the economy, not a panacea for economic problems nor a condition for economic development. Markets work when there are resources to distribute, not when an economy is resource-barren.


3. Our fathers did not tell us that any development of a capitalist economy is only possible with massive concentration of capital. Only countries that see significant inflows of material and financial resources for an extended time can show ‘miracles’ of economic and social development. Technically, it does not matter where that capital should be coming from: foreign demand for local products, investment from other countries, an issue of money backed with national debt, foreign debt, the plundering of colonies, etc. No economy whose capital is being drained out has a chance of pulling itself out of the gutter. If the local solvent demand is low and does not generate sufficient profits, while access to foreign markets remains limited, such an economy is doomed to debt slavery and living from hand to mouth by selling raw materials.

4. Our fathers did not tell us that capitalism requires constant growth. If no further growth is possible for whatever reason, capitalism starts falling apart at the seams and looks for ways to expand by force regardless of how many thousands of human lives that expansion is going to ruin.

5. Our fathers did not tell us that a bourgeois democracy is a democracy of the rich only. Figuratively speaking, the poor are never invited to the party in the first place. It is fat cats that make decisions in corridors of power, in corporate offices of industrial giants as well as on trading floors of stock and commodity exchanges.


6. Our fathers did not tell us that social development is based on economic development and comes with a hefty price tag - which the impoverished masses cannot afford. Reforms get easily stalled when there is no one willing to foot the development bill. Besides, it turns out that mentality comes with a price tag too. It is not enough to adopt a new law or start one more bureaucratic initiative to effect positive changes in the way people think. Revolutionary ideas and innovative breakthroughs will require a substantial economic foundation and enormous expenditures. A civilized society with the rule of law and respect for a fellowman's property rights is never possible if it is only a minority that has any property and rights.

7. Our fathers did not tell us that political freedom does not guarantee prosperity It is one thing to have one's freedoms inscribed on an official piece of paper decorated with coats of arms and sprinkled with cheesy democratic slogans. But to exercise one's freedoms is quite another thing - especially when you are mired in abject poverty. The mighty golden calf opens up doors that will forever remain shut for the less fortunate. (Editor; I assume by this the author is suggesting some kind of corruption) Paying your way through red tape solves things faster, connections with the right crowd protect better than a court ruling, and expensive PR compaigns usually generate higher turnouts at polling stations.

8. Our fathers did not tell us that “business” and “economy” are not the same thing. The economy is a system developed by society to provide for their material and some spiritual needs, while business is merely the art of money-making and is only interested in financial returns at any cost. In prosperous times, businesses eagerly take what the economy can offer in order to thrive and proliferate. But when hard times come, businesses do not give a damn about the economy nor the society with its material and spiritual needs. They still care for returns, and that is true for both small and big businesses.


9. Our fathers did not tell us that debt can be an effective way of postponing crises of over-production by stimulating fictitious demand, which I define as solvent demand beyond the natural limit of consumption, i.e. beyond one’s means. As credit rates fall as a result of boosted money supply, the economy continues to grow and everybody is happy – until the next crisis breaks out.

Boris Anisimov

Boris Anisimov is a Russian political economist and writer

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Sunday, January 16, 2011

Sport: The Last Refuge of Community in Our Society ?

above: Indigenous Australian football players

Firstly: Happy New Year both to regular and new readers. :)  The following article - our first for 2011 - is an exploration by past-contributor Geoff Drechsler - of the decline of community in modern society (especially Australian society)  - and of the potential place of sport in rectifying this.

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article by Geoff Drechsler

Revolutionary killjoy, Leon Trotsky believed that sport was an inappropriate diversion for the toiling masses from the erstwhile business of politics. Comrade Leon would be in a philosophical quandary if he ran his eye over 21st century Australian society. In our atomized society, we compete against our co-workers for the next step up the corporate ladder, then do a solitary Iphoned commute to get home. Under these circumstances - where we are more likely to live alone than ever before, organised sport may in fact be one of the last refuges of community in Australian society.

Now hold on - you’re thinking: 'what about the destructive front page rock star drug habits of professional football players?' What of the corporate machine that now ruthlessly markets sport ? And even the shameless genital exposure that seems a regular post match weekend event ? While all BBQ stoppers, they are far removed from the more 'middle of the road' Saturday afternoon reality for the suburbanites of the quarter acre block, where every weekend, people pull on a jersey, or guernsey, or goal attack bib together, whether slipping into full forward or goal defence. Think of another time when we work so tirelessly together, in unison, in an egalitarian way ? (And devote weeknights to it together so we get better at it as a team). Pretty much, we start participating as soon as we enter the school system too, whether we make the team or just have a kick around at play lunch, and the shared centrality of the clubrooms in our weekly ritual even offers a forum for community education.

In other aspects of our life, like the world of work, things have changed for most of us. Gone are the road crews and production lines that required us to work together as a team - with the need to get along over the long term in our “job for life”. "In" are the workstations where we work alone at our PC in a 9 to 5 world populated by individual performance assessments, individual work contracts - even eating lunch at our desk on our own…….

In parenting it is now rare to pass a crying infant around extended kin - who in the past all probably conveniently cohabitated under the same roof.  Instead we tough out the sleepless nights and greet the dawn on our own. To unwind, we retreat, alone, into the online world of the first-person shooter, PSP and online poker...  And yes - I know social networking is a form of interaction between people - but the intermediary is a soulless liquid crystal monitor.

While different sports certainly have an obvious social class bias (compare the down to earth 'Marngrook-ness' of AFL to the private school elitism of rugby union), all still encourage a togetherness that's quite alien to other aspects of our social life now.   (nb: 'Marngrook' was the name for the indigenous Australian game which many believe to have been the inspiration for Australian Rules Football)

Who would have thought that a whole lot of guys sitting around in the nude, drinking stubbies together on a Saturday afternoon, could be a social movement ?

The other aspect of sport that reinforces the togetherness is the phenomenon of mass spectating that occurs in Australia. The MCG is one of the largest sporting arenas in the world (Old Trafford, Manchester United’s home ground, the crème de la crème of English Premier League, the biggest league in the most popular sport on the planet, only holds 75,000). So this is the other dynamic of sport as community, spectating or “barracking”. (What other language has the equivalent expression to Australian English’s “footy mate” ?) You only have to spend any time in a country town to see organised sport also operates in this way, where sporting fixtures offer those members of the community who don't participate directly, an opportunity to come together nonetheless, watch and socialise. And our glorious weather encourages both.

So cast your mind back to last October, when you were throwing another banger on the barbie last at a Grand Final party, or more recently watching the seeming (seaming ?) demise of the Australian national test team with mates, and take a moment to ponder that that might be your community.

Geoff Drechsler is a veteran Australian labour movement activist

Sunday, December 5, 2010

Supported Wage System exploits workers with disabilities



Helen Said, an Australian socialist activist has written to us asking us to help an important "cause [become] better known around the Left."   Specifically she is concerned with "the issue of the 'Supported Wage System' which is embedded into most industrial awards."  As she explains: "The System involves paying a worker with a disability a percentage of the award, depending on how they measure up in a productivity assessment. The worker is then asked to enter into an "agreement" to work for a lesser rate of pay and regularly reassessed. Their pay can be cut at any time through such reassessment."  Helen believes this system is unjust; and the following article explains why... 

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submitted by Helen Said

The Supported Wage System allows employers to legally underpay workers with disabilities, depending on how they measure up in a DEEWR productivity assessment.

The federal government’s Job Access program portrays this ruling as part of a progressive package of egalitarian policies, like funding workplace accessibility improvements. The Job Access website describes The Supported Wage System as “a process that allows employers to pay less than the award wage by matching a person's productivity with a fair wage.”
http://www.jobaccess.gov.au/Services/A-Z_list/pages/Supported_Wage_System.aspx

The Centrelink Website further elaborates: “This system incorporates a process of productivity-based wage assessment. For example, if a person involved in Supported Wage System (SWS) is assessed as having a productivity level of 70 per cent compared to co-workers performing the same duties, the worker and the employer can agree to ongoing employment at a pay rate of 70 per cent of the normal rate.”

The Job Access website hails case studies of two workers with disabilities, who earn 70% and 80% of their respective award’s wages, as SWS “successes”. One of these workers was described by her employer as being “able to perform her duties with limited supervision, is reliable and is considered one of our best back area staff, able to cope with busy workloads and she demonstrates that she enjoys her job.”

Job Access further assures employers that “people with disability can have fewer accidents at work—the workers compensation costs for people with disability can be as low as four per cent of the workers compensation costs of other employees …. people with disability can have lower absenteeism and often take less sick leave than other employees …. employing people with disability can build staff morale, raise management awareness of workplace practices and conditions, and increase customer and staff loyalty.”

Yet these are not the attributes that employers and governments consider in deciding how much to pay employees with disabilities. As described in numerous federal government worksites, including this Fair Work Australia report, the sole criteria in deciding how much a worker with a disability gets paid is productivity as measured by a DEEWR-contracted assessor.
http://www.fwa.gov.au/sites/wagereview2010/research/5_2010_diability_report.htm

According to this report “an employee assessed at 10 per cent capacity would have a minimum wage of 10 per cent of the relevant classification wage specified in the award.” This legalised work-for-pocket-money industrial legislation goes against the grain of the equality and deinstitutionalisation policies which operate in every other sphere of society. People with disabilities are being brought up to participate in all aspects of life as equals. Many marry and have families to support. Our industrial legislation on wage levels hasn't caught up. If anything it is going backwards.

Since its inception in 2005 approximately 5000 DEEWR productivity assessments have been carried out on workers with disabilities annually. The majority of SWS participants are male and aged between 15 and 25, mainly living in Queensland, NSW and Victoria. They typically have “intellectual learning disability,” and work an average of 20 hours per week, mostly as trades assistants or factory hands. Assessments of capacity between 40 per cent and 70 per cent are most common, and the average assessed capacity is 53.3 per cent.

Before undertaking an initial SWS assessment to determine the percentage of the award a worker will earn, the worker may be employed on a trial basis of up to 12 weeks for as little as $71 per week, with a possible extension of a further four weeks. This provision effectively grants employers the right to employ workers with disabilities on a casual basis at third world rates of pay, with no chance of ongoing employment, if these workers are deemed to have failed their “trial”.

Employees with disabilities are regularly reassessed by DEEWR “to ensure the employee’s level of productivity is accurately reflected in their remuneration.” But this has nothing to do with granting workers with disabilities incremental pay increases. In fact some workers with disabilities are having their wages further slashed after reassessment for failing to keep up with their employer’s productivity race. Even underpaid workers at sheltered workshops have had their wages slashed when they were brought under the SWS.

The union movement has largely accepted the SWS in the mistaken belief that it gives job seekers with disabilities a fair go. But the SWS sets up workers with disabilities for life long poverty and stigma, ignores the quality of their work, ignores their attendance and reliability as employees and fails to acknowledge the equal or greater economic burdens faced by workers with disabilities. Workers with disabilities need full protection under equal opportunities provisions, including provisions surrounding rates of pay. Any incentives needed to assist with their employment should not be granted at the expense of their wage levels.

Sunday, November 28, 2010

Zombie Economics: How Dead Ideas Still Walk Among Us

above: the author - economist, John Quiggin

The following is a summary of a new book:  'Zombie Economics: How Dead Ideas Still Walk Among Us' - submitted to Left Focus by its author, John Quiggin.  John Quiggin is amongst Australia's most accomplished economists;  and a long-time critic of the dominant neo-liberal ideology.  The Global Financial Crisis has shown that something has to change; and Quiggin seeks to refute right-wing economic shibboleths once and for all.  His book is published by Princeton University Press. (more details below)

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Ideas are long lived, often outliving their originators, and taking new and different forms. Some ideas live on because they are useful, and become more so as they develop. Others die and are forgotten. But even when they have proved themselves wrong and dangerous, ideas are very hard to kill. Even after the evidence seems to have killed them, they keep coming back in zombie form.

If we are to understand the financial crisis, and avoid the kinds of responses that set the stage for a new and even bigger crisis in a few years time, we must understand the ideas that got us to this point. My book, Zombie Economics: How Dead Ideas Still Walk Among Us describes some of the ideas that have played a role in the crisis. They are

* The Great Moderation: the idea that the period beginning in 1985 was one of unparalleled macroeconomic stability;

*The Efficient Markets Hypothesis: the idea that the prices generated by financial markets represent the best possible estimate of the value of any investment;

* Dynamic Stochastic General Equilibrium: the idea that macroeconomic analysis should not concern itself with economic aggregates like trade balances or debt levels, but should be rigorously derived from microeconomic models of individual behavior;

* The Trickle-Down Hypothesis; the idea that policies that benefit the well-off will ultimately help everybody; and

* Privatization; the idea that any function now undertaken by government could be done better by private firms.

Some of these ideas, such as the Efficient Markets Hypothesis and Dynamic Stochastic General Equilibrium belong to the realm of technical economic theory. Others, such as Privatization are policy prescriptions, derived from these abstract ideas. Still others like the Great Moderation and Trickle-down Economics, are catchphrases for claims about how the economy works, or, at least, how it worked in the thirty years or so before the current crisis.

Together these ideas form a package which has been given various names: ‘Thatcherism’ in the United Kingdom, ‘Reaganism’ in the United States, ‘economic rationalism’ in Australia, the ‘Washington Consensus’ in the developing world and ‘neoliberalism’ in academic discussions.

It is clear that there is something badly wrong with the state of economics. A massive financial crisis developed under the eyes of the economics profession, and yet most failed to see anything wrong. Even after the crisis, there has been no proper reassessment. Too many economists are continuing as before, as if nothing had happened. Already, some are starting to claim that nothing did happen, that the global financial crisis and its aftermath constitute a mere ‘blip’ which should not require any rethinking of fundamental ideas.

A simple return to traditional Keynesian economics and the politics of the welfare state will not be sufficient. It is necessary to develop both theories and policies that respond to the realities of the 21st century economy.

The ideas which caused the crisis and were, at least briefly, laid to rest by it, are already reviving and clawing their way through up the soft earth. If we do not kill these zombie ideas once and for all, they will do even more damage next time.

The book can be purchased via the Princeton University Press website. 
See: http://press.princeton.edu/titles/9270.html

John Quiggin is an ARC Federation Fellow in Economics and Political Science at the University of Queensland. He is the author of Zombie Economics: How Dead Ideas Still Walk Among Us, recently published by Princeton University Press.

for more info on John Quiggin see:  http://www.bing.com/search?q=John+Quiggin&src=IE-SearchBox&FORM=IE8SRC

Latest News: The Labor Party in the recent Victorian State Election seems to have suffered a massive swing against it and a conservative government now looks very likely. Labor figures are holding on to a slim hope that a hung parliament may be possible.  In the context of a swing against it of over 6% Brumby Labor needs to hang on to a swathe of ultra-marginals.  The 'wild card' in all this is 900,000 pre-poll and postal votes yet to be counted.  We'll be providing more commentary on this in the near future...

Sunday, November 21, 2010

Last look at Labor and Greens Policies before the Victorian election


above: Does Victorian Labor Premier John Brumby have what it takes to win government for the first time in his own right?


The following article in an analysis of a number of Australian Labor Party and Greens policies which may be crucial to the outcome of the 2010 Victorian State Election; and the kind of legislative agenda that is enacted thereafter.  Crucial issues include social housing, aged care, and renewable energy. Feedback and opinions from readers are welcomed.  And if anyone representing the Australian Greens can provide more information re: modelling for the funding of proposed programs that would genuinely be welcome too!

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by Tristan Ewins


Greens policies for the Victorian State Election

On November 14th the ‘Sunday Age’ carried a feature regarding Greens policies for the coming Victorian State election. On the plus side these policies addressed issues that have been long-neglected – including by Labor. On the downside, Michael Bachelard doubted the affordability of the entire range of policies taken together.

As the Victorian State election approaches, this week we consider Greens and Labor policy in more detail.

In his article in the ‘Sunday Age’ Bachelard listed the following as Greens policies:


• subsidise low-income earners to pay increased power bills

• Increase health funding

• Reduce hospital waiting lists

• Build birth centres everywhere that needs one

• Increase mental health funding

• Fund mental health workers in schools, police stations, prisons

• Aged care for everyone who needs it

• $1 billion a year more for public education

• Free preschool

• Better pay for teachers

• No TAFE or school fees

• More for social housing

• $13 billion for more public transport

• Peak-hour trains and trams to arrive every 10 minutes

• Boost to legal aid funding, providing ‘justice for all’


Bachelard noted that few of these policies had actually been costed. Further, these policies are forwarded in the context of promises to actually cut tax in some areas: “with less gambling revenue, stamp duty and payroll tax”…

But on the other hand: “Taxes on carbon dioxide and electricity transmission would go up, though low income people would be protected from higher energy prices…”

Bachelard explains that the Greens are also assuming a national carbon tax (presumably implemented by the Federal Labor government) with significant funds “[flowing] back to the state”. ‘Wriggle room’ is also assumed in the context of a $43 billion state budget.

The critical question is how these strategies balance out on the budget bottom line if implemented. And with a swathe of new initiatives “holding the line” is not good enough. What would be needed is new revenue. And while Victoria can afford new debt so long as those debts are serviceable, dependence on debt-financing cannot go on forever.

There isn’t scope here for me to consider all the Greens policies listed by Bachelard, but we will look at a selection.

Firstly let’s consider Greens policy on public housing. According to Bachelard this Greens policy would involve a shift “towards social housing, including the construction of 29,000 more ‘affordable’ properties by 2014.” In the Bachelard article “professor of urban studies…Terry Burke” describes this ambition as “financially impossible to achieve”, with a price tag of “over $6 billion” (presumably for Victoria alone), putting “impossible” pressures “on the Commonwealth.”

In response to these claims, though: doing nothing is not an option. And considering the scale of the problem – neither are ‘half-measures’.

The crisis of housing affordability is amongst the worst of the Howard government legacies. The housing bubble has left a lasting impression not only for home buyers, but in the rental market as well.
Partly because of speculation encouraged by the Howard Conservative government, and partly because of undersupply, housing prices have spiralled out-of-control over the past decade or so.

And unfortunately – even considering an investment by Rudd Labor in public housing – Labor governments have not done enough.

In March 2010 ‘The Age’ noted that: “House prices in Australia climbed 13.6 per cent in 2009 alone after a decade in which they posted increases of about 170 per cent, according to the Australian Bureau of Statistics.” In the same article it was observed that Australia suffered a “current shortage of 200,000 homes and an annual shortfall of 60,000”, and that this “would balloon to 800,000 by 2020, if no reforms were undertaken.” http://www.theage.com.au/business/property/australia-faces-housing-affordability-time-bomb-developer-20100317-qdii.html

But assuming the level of investment suggested by the Greens was a ‘once in a generation strategic commitment’, replicated interstate and with the support of the Federal government, then it is reasonable to assume such a project would be worth the devotion of resources.

Notably, though: assuming maintenance of the relative effect on supply, lower but sustained levels of investment would need to continue thereafter over the long term – sufficiently as to keep pace with a growing population.

Even if a ‘once-off surge’ of investment reached the vicinity of $20 billion nationally, the crisis is genuinely such as to warrant it. Housing affordability must be a priority; and simply releasing new land at the urban fringe is not enough if government will not commit also to funding the necessary infrastructure.

Greens prioritisation of public transport is also admirable: but with a growing population and an inevitable degree of urban sprawl can new investment in roads be put off forever?

And it will be interesting to see the form power subsidies for those on low-incomes would take. One option could be to create ‘quotas’ for renewable versus dirty (but cheaper) energy. By allowing those on welfare and low incomes to draw fully from non-renewable sources, and by promoting ‘quotas’ of renewal energy use for others - an effective subsidy could come in to play. Perhaps further subsidies should be applied for those on welfare AND low incomes in the case of water as well.

In an area apparently not canvassed by either Labor or the Greens, it is also notable that cross-subsidies could be best applied in the context of a return to natural public monopoly in energy and water. Such conditions could also encourage better value for consumers generally.

Social-commentator Dick Nicholls, in a 2008 article noted how:

“In the corporatised New Zealand industry the wholesale price of electricity declined 17% in real terms between 1987 and 1997, but the retail price increased by 20%.” http://www.greenleft.org.au/node/39055

And in an Australia-specific example, Nicholls explains that:

“In South Australia, between 1994 and 2002, residential tariffs increased by 40%, with the state's regulator claiming that 20% of the total tariff was due to privatisation.” http://www.greenleft.org.au/node/39055

Even where efficiency gains have been delivered under private utility ownership, gains have been diverted to maximise profits and share value instead of flowing to consumers.

Re-socialisation of utilities under these circumstances makes sense: and there is a need amongst the major parties (including the Greens and Labor) to scrutinise and ultimately reject the neo-liberal ideology which rules out ‘natural public monopoly’ in order to maintain a ‘pure’ position on the theme of exclusively private markets.

So many of the policies canvassed by the Greens are crucial; but the final policy we’ll consider, here, is Aged Care.

I’ve already considered the Aged Care crisis at this blog elsewhere. Readers are welcome to consider earlier ‘Left Focus’ articles of mine at the following URLs:

See: http://leftfocus.blogspot.com/2009/02/avoiding-austerity-caring-for-our-aged.html

And also: http://leftfocus.blogspot.com/2009/02/another-look-at-aged-care-crisis-call.html

A ‘total package’ for Aged Care must include support for carers; mandatory heating and air-conditioning in all hostels and nursing homes, free dental care, as well as more staff and a better ‘staff mix’ – with more registered nurses, and better pay and conditions to attract these into the system.

Other ‘quality of life’ issues include privacy, and access to individual rooms; as well as: “access to the “simple pleasures”…[such as] parks [and] gardens. Access to television, music – and into the future access to information and communications technology (ICT) must be considered a basic right.

But the broad range of initiatives canvassed by the Greens would cost money – and lots of it.

Amidst all these issues, the bottom line is that crises involving an ageing population (with related health and welfare costs); and involving housing supply and insufficient urban fringe infrastructure – cannot be addressed without an increase in revenue. Increasing the retirement age is not fair, though – and the timid response to such proposals in Australia by the labour movement is mind-boggling.

A rising cost-of-living also demands welfare reform as well as further tax-rebates for those on low incomes. The best place to address this is at the Federal level, with progressive tax restructure, and vital grants flowing through to the states for provision of services.

If the Greens are serious about the reform agenda they propose they need to consider how these ambitions can be realised in the context of Federal and State government co-operation. To provide these kind of outcomes we need a progressively-structured increase in taxation nationally; rising for this term of the Federal Labor government in the vicinity of 1%-1.5% of GDP.

The Greens have the right kind of ambitions, and their policy writers look to have their hearts in the right place. But they need to be clear on how they are going to deliver. If any of their spokespeople are able and willing to elaborate on this, they are most welcome to do so via Comments at this blog.

Labor policies for the Victorian state election

Looking to the Victorian ALP website it appears that Brumby Labor is putting a lot of emphasis on Liberal costings, and the sustainability of their promise to slash Stamp Duty. The Labor line seems to be that Ballieu is making promises he simply cannot deliver; and that it is Labor who enjoy a 'proven history of fiscal discipline.'

In response on Stamp Duty, Labor is promising a targeted and focused (hence smaller) reduction of their own – tightly focused on newly-built first homes in regional Victoria. This is smart urban planning, also: as by focusing on the development of regional centres, pressure is lifted from the Melbourne housing market, while partly-containing urban sprawl. http://www.alpvictoria.com.au/news-events-media/news/baillieu-s-stamp-duty-hoax-will-break-the-budget/

Brumby Labor is also claiming to hold the ‘high ground’ on the environment; re-iterating their commitment to reduce emissions by 20% based on 2000 levels. As part of this commitment, Brumby Labor is emphasising their plans for a “staged closure” of the ‘dirty’ Hazelwood power plant. http://www.alpvictoria.com.au/news-events-media/news/baillieu-embraces-tony-abbott-s-climate-scepticism/

For the Greens these measures have not gone far enough; but the dilemma for voters is whether to ‘reward’ Labor in expectation this will encourage further action; or whether to apply greater pressure by supporting the Greens. There are issues of ‘electoral synergy’ between the ALP in Greens which I raised in the ‘Left Focus’ instalment immediate prior to this.

Meanwhile: with fear of violent crime spiralling, public transport safety has also become a major issue. In response to Liberal policies, Labor has committed to “returning staff to every station on the electrified metropolitan rail network” and “delivering a central CCTV control room that will make our trains safer for commuters.” Further Labor are promising to “fund 100 additional Transit Police for a total of 350 across the network.” http://www.alpvictoria.com.au/news-events-media/news/ted-baillieu-reneges-on-pso-train-station-policy/

And yet today’s ‘Sunday Age’ (21/11/2010) – on its front page - exposes the fear campaign around violent crime as being founded upon false and exaggerated claims. While Victoria’s overall crime rate has fallen by 29.9% since 2000-2001, Victorians are being confronted with a “law and order election”. The Liberals imagine they could be swept to office upon a wave of fear; and Labor has done little to question this trend – for fear of inviting a backlash in the face of what for many is ‘indisputable’ and ‘common sense’.

The role of the media for cultivating these perceptions also needs to be scrutinised.


What is also notable is the extensive record of Victorian Labor when it comes to support for Public Private Partnerships. (PPPs) Columnist for ‘The Age’, Ken Davidson, has long taken Labor to task on just this issue, accusing the government of ‘fleecing’ the public. In March 2010 Davidson observed that “[according the the government’s budget papers] there are now $10 billion worth of public-private partnerships on Victoria's books as liabilities.” (approximately $4 billion of this related to the Wonthaggi desalination plant) http://www.theage.com.au/opinion/politics/lenders-fudges-facts-on-ppps-20100504-u71f.html

Davidson continued:

“On the assumption that the overall return to investors on these projects is a conservative 10 per cent, the cost to Victorians as taxpayers and water consumers will be of the order of $1 billion a year. Given that the government's AAA credit rating means it could borrow the same amount of money for an interest expense of $500 million… “Half a billion dollars could finance the interest expense on $10 billion - enough to transform Victoria's transport, education and health systems.” see: http://www.theage.com.au/opinion/politics/lenders-fudges-facts-on-ppps-20100504-u71f.html

Meanwhile -- Davidson’s proposed alternative

“involves piping water from north-west Tasmania that can supply the whole of Melbourne. This frees up 90 per cent of Melbourne's water from the Thomson and Upper Yarra dams.” http://www.theage.com.au/opinion/society-and-culture/not-too-late-to-stop-the-disaster-that-is-our-desalination-plant-20101010-16dxd.html


The trend towards Public Private Partnerships – which originally gathered pace under the Kennett Liberal government – has rarely been subjected to proper scrunity. Public debt finance has always been cheaper (this is usually the case for governments, and especially given Victoria’s ‘AAA’ rating); and provision for private profit margins has always meant that the public pay comparatively more for PPPs over the long-term.

Arguments for ‘PPPs’ based on diverting ‘risk’ also seem empty in the face of contracts which bind Victorian taxpayers to pay billions for desal plant water even when there is no demand – and when there is an abundance of supply.

On the other hand, Victoria’s population is growing, and there will be expanded demand for water into the future.

Furthermore, with stress upon the Marray-Darling basin, some have argued that Tasmania may arise as the country’s new ‘food bowl’. These matters were discussed on the 7:30 Report in September 2010. (see: http://www.abc.net.au/7.30/content/2010/s3024352.htm )

The consequence of this is that Tasmania may need its supply of water into the future.

But even assuming this, a fully-public desalination plant would have provided better value for tax-payers. And the project might also have been deferred until such a time that the need was more immediate and indisputable.

Finally, Brumby Labor is trying to claim the ‘high ground’ on social justice – pointing to its ‘Fairer Victoria’ initiative, and refuting claims that it ‘no longer stands for anything’. Specifically, Labor is pointing to investments of “$1 billion a year for the past five years under the Fairer Victoria package.” Professor David Adams describes this “co-ordinated and preventive” “umbrella of investment across vulnerable communities, childhood development, education opportunities, mental health and disability services” as positioning Victoria nationally ''just ahead of the game''. http://www.theage.com.au/victoria/victoria-state-of-the-fair-go-or-the-fob-off-20101023-16ynd.html

And yet while overall Victorian investment in public housing is seen by some as lagging, the Liberals are also portraying Labor’s homelessness policy (a $42 million package; see: http://www.theage.com.au/victoria/brumby-to-spend-42m-helping-homeless-20100922-15myv.html ) as having ‘come too late’. There are around 20,000 homeless people in Victoria alone.

Conclusion

This article has only involved a small sample of Labor and Greens policies. There has not been sufficient scope to provide an exhaustive exposition. But hopefully the analysis here will have provided for some a deeper understanding of the issues at stake.

The ‘Sunday Age’ editorialised today (2/11/2010) under the heading “Labor? Liberal? What difference would it make?” Although drawing to this editorial’s conclusion there was at least the observation that – 'unlike in NSW' – “[Victorian] Labor offers a competent managerial government.”

Years of Public Private Partnerships, outright privatisations and policy convergence have left much of Labor’s core support-base deeply cynical.  Many have defected to the Greens. And even now some are speculating about future private toll-roads under Labor.

The Liberals would be no better. Their commitment to the neo-liberal ideology means there will be no scrutiny of ‘privatisation gone too far’. And their ‘tough on law and order’ policies represent crass and dangerous population at its worst.

What is more - Labor’s ‘Fairer Victoria’ programs – while needing to be expanded upon – could also imaginably be targeted by the Conservatives to pay for their $750 million in Stamp Duty cuts. (which are several times the scope of Labor’s proposal)  see: http://www.heraldsun.com.au/news/victoria/parties-fight-to-cut-stamp-duty/story-e6frf7kx-1225957471507

No-one seems to be talking about utility re-socialisation to restore natural public monopolies. Hopefully it’s not too late for Labor and the Greens to reconsider these issues into the future.

Again: The Greens are mostly making ‘all the right noises’ but have to come up with a workable model for funding. Conceivably this might involve co-operation with Labor at a Federal level to provide funds for water and energy subsidies, aged care, public housing and other priorities. Progressively-structured tax reform (ie: expansion) over the coming three years of the scope of 1.0%-1.5% of GDP could provide room for these initiatives.

It would also be refreshing were the Greens to take a high-profile position against infrastructure privatisation.

Despite the rivalry, Labor and the Greens actually need each other if progressive reform is to be achieved.

Here’s hoping Labor/Greens co-operation in the Victorian parliament ‘bears fruit’ with real, tangible and genuinely realisable change over the coming years.
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