Showing posts with label financial crisis. Show all posts
Showing posts with label financial crisis. Show all posts

Monday, 22 March 2010

What change should look like


This is what change looks like. Said Obama.
Yes we can. Said the Democrats.
And lo and behold, the healthcare bill passed.
Was it simple? No.
Was it fast? No.
Was it everything we had hoped for? No.
No. No. No. But it was something. Both a practical solution to America's oldest social responsibility deficit and a symbolic move that change is not always for the worst. And many had said it can't be done.

That made me smile.
I haven't smiled at the news in a while.
But the smile didn't last long.
A text message flashed up on my phone a few minutes ago 'factions fighting on the streets, tourist organisations declaring Greece unsafe'. Thanks for shattering my zen. You know who you are.

'It is unthinkable that Europe won't support us' said the Greek prime minister.
No 'this is what change looks like' grandeur in our neck of the woods.
'We consider it unthinkable for the European Union not to give us the assistance and political support we are asking for' said our Premier.
And that is the extent of his policy.
And although it is most probably true – joining the euro didn't come with a withdrawal clause as such, you didn't keep your old currency in the attic 'just in case things didn't work out'. Failure was not an option. That was not the general idea. We were in this together from now on and whatnot.
So of course Europe will help. But Europe will be bitter and difficult about it every step of the way. In the middle of the current crisis, on the back of Germany's strop, the last thing Europe wants to do is help the destitute relative. The last thing they are prepared to do is be gallant about it.
And if the extent of our policy is 'sit back, have another mushroom vol-au-vent, they'll help us, what else can they do' then we need to be prepared for quite a bit more abuse from Germany.

Not that I think that the German press's puerile hate campaign is ok. But then again I don't think the way we've been running our affairs is ok either. And as two wrongs don't make a right, I wish the global press paused long enough to realise that the people mopping up the mess, picking the tab, suffering the cut backs, shouldering the extra tax and suffering the shame of this prolonged press campaign actually have no way of changing their fate. Never did.
And spare me the crap about democracies and the responsibility of the electorate. Procedural democracies with entrenched party systems tend to be stable Polyarchies with limited choice for the electorate whose participation only occurs every five years and in-between civil society is dormant, transparency wanting and accountability faint. Add to that Greece's deep-seated paternalistic venality, favouritism and clan mentality and what you have is a system of extremely qualified access and representation by numbers. Short of a revolution, there is very little 'the people' can do and the Commission wouldn't want a revolution within the eurozone now would they?

So go easy on us because we don't like our leaders any more than you do but we are the ones who have to pay the bills and live with the corruption and the shame.

And before you quote myself back at me, I know that I always bang on about public responsibility and I do not intend to go back on that now or ever. We are responsible writ large for our own society. And we are responsible for our lack of collective action, for the lack of civil society mobilisation. And for the lack of revolution damn it.
But one thing we cannot be held responsible for is our inability to get ourselves out of this bind right now. Social change does not occur fast enough. And global fiscal systems are interlinked with corporate power structures and government, not civil society actors and citizen associations.

Pointing out the obvious? Perhaps.
But as I keep telling my students at the university, the one thing that most political theories forget is real people. As I keep telling my colleagues in the City, the one thing most fiscal systems forget is real people.
But it's real people who die in wars and real people who represent that strange and wonderful animal that is 'consumer confidence'. And it is real people that are living in fear, insecurity and shame in Greece now. And none of them are in government or in a position to do anything right now other than suffer.
And what good is that doing anyone?

If the Commission went straight to the culprits I'd scream off with their heads and accept any stringent regulations that were thereafter imposed on our society. Do we need to up our game? Absolutely. Us the people need to do more. Need to be more.
But to do that we need to be able to stand up. If our backs are broken we are no good for growth and future prosperity.

News coming out of Greece at the moment is the exact opposite to the wonderful feel-good victory feel of news out of the USA. Yes they can and they did. And we cannot and did not. But we could.

Bear with us, is what the Greek government is telling the EU.
We will tax the Church (at last). What else will we do? We don't know. But bear with us.
The EU need to see more.
Damn it. We need to see more. Because we are tired of paying and being mocked by everyone, our government included. And there is little we, the citizens, can do right now. So.

That's what change looks like said Obama.
And why did that matter?
Because he made things happen. Because not only did he remember the real people. He actually made policy for them.

Mr Papandreou, it's your turn to show us what change looks like or face the consequences. Real people are watching.

Friday, 5 March 2010

Selling off the family silver


My mother was right.

'Are we even a country any more' she asked me, after the EU Financial Salvation Army made clear what the price of salvage was actually going to be.

At the time I made some vague noises around conceptual issues and the idea of statehood but as it turns out, she knew what she was talking about and I can just stuff my statehood notions. After explaining to my mother that countries are not businesses for whom bankruptcy can well mean selling off assets and shutting up shop and that borrowing and lending at the state level carries a different set of caveats than corporate lending does, I may just have to eat my words.

You must have heard of the two Germans, an MP and a finance expert, who suggested during an interview that Greece should sell off a few islands and maybe the Parthenon to pay off its debts?
Crazy? Possibly.
But yesterday the article was reprinted in the Guardian. In the Business section. Not the funny pages. Not in the spirit of 'comment is free'. And although it was treated as preposterous, it was still printed. In the Guardian. In the Business section.

So get in line guys.
Crete and Mykonos are already spoken for and me and a couple of mates are clubbing together for Santorini but the rest is available so have a look at the map and take your pick.

Now Josef Schlarmann and Frank Schaeffler didn't actually suggest we sell off the good islands, they are economists after all and this is a practical solution for them: Greece keeps the islands that bring in tourist revenue and the ones that are inhabited at a push – the logistical nightmare of relocation is just not worth it – and uninhabited islets that currently generate no revenue go up for sale.
Oh and the odd antiquity goes up for sale too.

"Those in insolvency have to sell everything they have to pay their creditors. Greece owns buildings, companies and uninhabited islands, which could all be used for debt redemption" Schlarmann told the Bild.

Buildings? If the country's debt would be settled by selling the odd building we wouldn't be where we are now. As for Greece's state-run businesses, again, if they were appealing prospects for private investors we wouldn't be in such dire straits. So. Islands and nuggets of history it shall be, decree our German friends.
Great.
Gotta love economists. A problem demands a solution and all assets are ultimately for sale. Ergo.

Now granted, I know that these statements are made against the backdrop of a German populace that is against a Berlin-funded bailout for Greece and I can't blame them. But not helping may not be an option within the confines of the euro-zone and although they EU and its powerful members retain the power – and on some level the right – to demand austerity measures, cut-backs and tightened belts, surely there is a limit to what can be asked of us.

Or is there?

Because, let's face it, this is no joke.

Of course the Bild headline Sell your islands, you bankrupt Greeks! And sell the Acropolis too! was, one would hope, tongue in cheek, the idea is out there. Granted, in the UK at least it has been printed and reprinted as a preposterous idea that is now on the table.
Preposterous. And on the table.
And Merkel is meeting Papandreou, in Berlin today. And she is not going to suggest that we sell off the Acropolis. Or antiquities. Because I am hoping her advisors have filled her in on the EU's legal and moral stand on matters pertaining to the trading in civilisation and cultural artifacts.
But uninhabited islands are real-estate and the idea is out there.

So could future maps show a bit of Austria in the Aegean? A bit of Malaysia in the Ionian sea? Could school-kids in future generations learn that Greece shares borders with Turkey, Bulgaria, Albania and Unilever since their purchase of the island of Evoia?

Of course Evoia is populated – not to mention massive – so it wouldn't be an obvious candidate for sale but the underlying concern is the same: when a distinct and contiguous piece of land – however small – is sold to an individual, company or foreign government what jurisdiction is there on that island? Logically the pre-existing national jurisdiction remains because what you sell is a plot of land, not sovereignty.

So what's the big deal? Land is bought and sold in Greece all the time.
And what the Germans don't know is that there is a law in Greece that protects public access to all beaches. So if Mr Schlarmann buys himself an island, I can always paddle out there and sun myself on his beach whether he likes it or not.
So what difference does it make, if the plot of land sold to an individual, company or government is on the beach or in the middle of the sea in the shape of a tiny little island?

Is it just that we resent being told what to do?
Is it that we resent the symbolic power of selling off islands rather than the odd field? Chunks of homeland, rather than plots of land?
Is it that we resent the implication of what was said: you are finished anyway so you might as well sell the family heirlooms and the house because you'll be out on the street whether you like it or not.
Or do we resent being told by the Germans who, after all, were the guys who most recently tried to take those islands away by force, and are now seemingly trying a different route? The echoes are deeply unpleasant. That, of course, is a facile criticism but that doesn't make it any less true.

Not that the Greeks would have enjoyed being told to sell by anyone else. The implication of selling distinct chunks of land and antiquities is too stark: you are finished, you are through, the vultures are circling your body and the heirs are already squabbling over the silver. Not a pleasant image and of course we are upset. But let's be honest with ourselves.

We are not upset just because two very practical teutonic economists found very practical teutonic solutions to a practical hellenic problem without consideration for our feelings.
We are not upset just because two lone voices in Germany told us we are finished.
We are not upset just because the world press is discussing that we are finished, as if we couldn't hear, as if it didn't matter we can hear.
None of this would matter as much, if we weren't all actually convinced we are finished. And if every solution didn't ultimately feel like selling off the family silver because there's nothing else left to do.

So onto the auction block. And don't forget. I've got first dibs on Santorini. You lot squabble over the rest.