Friday, 17 September 2010

A very slow succession

It's been a long time coming, but it finally may be here. Kim Jong il appears to be stepping down and installing his youngest son, Kim Jong Un. For many years, King Jong Il's poor health and reckless nuclear ambitions have indicated such a transition was imminent; but nothing ever materialised. Though a couple of months ago, Chinese media sources reported the creation of a statue of Kim Jong Il. There are many statues of Kim Il Sung, Kim Jong Il's father and technically, still the ruler of North Korea. Though they were only erected after his death. This is because North Korean juche culture stipulates that statues of leaders can only be built and displayed after they've died. So either Kim Jong Il is shaking things up in the north, or he's finalising his affairs before steps down (or dies).

I've reported before on the future leader of North Korea, Kim Jong Un, but this time, his succession finally appears to be occurring. The health of Kim Jong Il has been like a roller coaster ride. One day he's reported to be seriously ill after a stroke, the next he is about to die of pancreatic cancer, and then a few months after never being seen, he meets up with Bill Clinton to negotiate the release of US journalists. Being the mysterious leader of one of the most secretive states in the world appears to be one of his greatest accomplishments. He's accredited with transforming the North into rogue nuclear state, however North Korea has no ability to project that power any further than South Korea. It's numerous nuclear tests and sinking of the Cheonan have angered it's closest and most powerful ally, China. Following North Korea's latest nuclear tests, which were in clear defiance of international law and UN condemnation, China cut the transmission line between it and Pyongyang. This resulted in around 80% of North Korea being plunged into darkness. China, usually the moderator between the western world and the North, actually took an active step to prevent North Korea from exercising its nuclear power, even at the possibility of creating social and political instability. China and the North have always had a love/hate relationship, but with a new leader soon to take charge, that relationship will be critical in ensuring a peaceful transition.

Aid being given to North Korea has been in a steady decline since 2005. Defying international law and acting like a recalcitrant cretin with nuclear ambitions does that. But with more famine and death being caused by natural disasters and consistent North Korean government neglect and mismanagement, more aid is being offered. Previous aid agreements, most notably between US president Bill Clinton and North Korea, saw the closure and abandonment of the North's nuclear reactors...for a while. It appears that any attempts by any international institution or government to quell the North's nuclear aims, has proven fruitless. Carrots don't tempt the North to do good, and the using the stick would result in war. Though there is one exception to this rule: China. It's China who not only keeps the North's few lights running, but it's entire economy as well. It's North Korea's largest trading partner, political ally and sympathiser. It's China who is either going to make or break this succession.

The main thing China wants is regional stability, hence it's warning to the North about playing too much with the nukes. So it's obviously going to accept Kim Jong Un's rule, just to prevent a regime collapse and 24 million refugees flooding across the boarder. But North Korea is still stubborn. It doesn't want China to micro manage all of its affairs, run its economy and plumb the land for all the resources it has got. Similarly, China sees the North as an inefficient, unstable state with an economy going nowhere. Under a new leader, I'll be China who gets the undivided attention of Chang Sung Taek (Kim Jong Un's uncle) and Kim Jong Un himself. This leadership change is the perfect time for China to capatilise on new trade relations; ones that encourage industry, more open markets, more free flowing of information. It's these small steps, that may help stabilise the North by making it less reliant on nuclear power to prop up its regime.

This hypothesis really does fall short thought when you look at it in the context of Iran. But then again, there's no super power "mother country" sitting next door to Iran, telling it what to do. North Korea is at its most politically unstable point in decades. Kim Jong Un isn't being paraded around as a national hero just yet. The pomp and grandeur being delayed is just a sign of ineffective and unstable government, let alone bad event management. So for all it may be worth, this very slow succession in North Korea could turn out to be an opportunity for China to make inroads into this recluse state, to the benefit of all.

Links:
Third Kim lucky? - The Economist
The unconference - The Economist
South Korea Offers Aid to North - Wall Street Journal

Thursday, 9 September 2010

This is not just a minor win for Gillard

It’s not going to be ‘business as usual’ in Canberra anymore. Julia Gillard just managed to make government, but that doesn’t mean she has a mandate to govern. The mandate “swear jar” proposed by Rob Oakshott sounds like a good idea. Thought just like his “unity cabinet” proposal, it’ll be tabled as a cabinet agenda item just under 'world peace'. But as a few political doomsdayists  pack their bags for NewZealand, the rest of the world is welcoming Australia to the "minority" club. Currently, minority governments in the western world are the norm. Both Canada and Britain have them, not to mention previous minority state governments in Victoria and a current Labor/Green minority government in Tasmania. Having a government that need the support of the parliament  parliament and its sitting MPs, combined with structural reforms to the way parliament operates, will be a nice change (if nothing else). 

Though the first thing that needs to be cleared up before parliament sits is the term 'mandate'. If you look it up in a dictionary, it states that it's an official order or commission to do something. So when an MP is elected to parliament, regardless of party or whether they're part of the government, they have a mandate to represent their electorate because their electorate voted for them. Previously, a party could claim to have a mandate to govern the nation and form government when it clearly held the majority in the House of Representatives. So before we pull out Rob Oakshott's 'mandate', rules should be drawn up. Every MP in parliament has a mandate to look after their electorate, and in this political situation where every MP counts in order to pass legislation, we're more likely to see MPs serving their electorate rather than following party lines. This shift towards US style politics, where party lines are seen more like 'guidelines' rather than holy scripture, will create a more dynamic and representative parliament. Yes, inner city suburban interests will clash with rural and country Australia issues. But because each MP represent the same proportion of people (not the same geographical area), it all works out in the wash in the end. With more MPs like Malcolm Turnbull willing to cross the floor for specific issues, will remove power from political leaders (from all the parties). This will force leaders to acknowledge the demands of caucus and the parliament, and ultimately be more flexible. It's hard to envisage what exactly is going to occur. If Labor loose just one MP, government could be handed over to the Coalition unless someone else decides to cross the floor. Only time will tell. 

While many eyes and ears have been focusing on the 3 Independents in regards to their choice of party to support, and then for what reasons, significant changes to the functioning of parliament have been signed off by both sides of politics; albeit with some resistance. The first major change is the restructuring of question time. Questions will be limited to 45 seconds and answers cut off at 4 minutes. Pity this couldn't have been applied retrospectively to Rob Oakshott's decision speech. Questions and their answers must be relevant, as dictated by the discretion of the speaker. There will also be two speakers, one from each side of the house. Both will act as quasi independents who won't have a vote. Thus the government isn't disadvantaged by loosing a vote. A new committee will also be set up. Though this committee will vet bills before they reach parliament, weeding out those that are just designed to waste time. To what extent this committee is going to be held to account for its decisions however, is questionable. It may be good at stopping some of Katter's crazier policies from being submitted, though it could equally prevent some progressive polices from being entertained. But if formulated and executed right, it will make parliament more efficient. 

Over the coming days and weeks, Gillard will be doing her all to stop the Labor party from descending into chaos. She will also be trying to determine how she'll be able to pass the legislation she wants by getting support from the parliament. This government can't just rally the troops to blindly support it's policy. She has to sell it, convince the parliament that it's not only in the national interest, but also in the interest of each MPs and his/her electorate. The Coalition and Abbott, if they receive the numbers, could introduce their own legislation and get it passed. The Greens and Independents are hoping to do likewise. Whether this can be achieved or not, is yet to be seen.
Australia joins a crowded global club where minorities rule - National Times

Friday, 3 September 2010

Mad Hatter Katter

The election has come and gone. Well, sort of. A hung parliament is guaranteed and people are still in shock about the dramatic swing in favour towards both the Liberals and the Greens. The message for Gillard is loud and clear. But time will only tell if she's prepared to listen. Though in the meantime, the 3 independents; Bob Katter, Rob Oakshott and Tony Windsor get to play "pick the government". The Greens and Wilkie have pledged their allegiance to the ALP, which at this point, puts them 74 to the Coalitions 73 (including all already pledged allegiances). But it's Bob Katter who's kicking up a media storm in Canberra. The infamous independent politician that has made eyebrow raising remarks about the appearance of women in the outback, to advocating stronger protectionist policies and government controlled interest rates, may make or break a minority government. Though while Bob Katter and I disagree on a number of issues, there are some benefits that will arise from this political mess. But firstly, on the points we disagree on. 

Apart from being a politician that is a pleasant to listen to as fingernails down a blackboard, Bob Katter can occasionally crack out a smile which then makes you wish he hadn't. After seeing his endless rambles on the 7.30 report and other programs, I've come to the conclusion that it's his policies that really grate with me. As Katter gets to be one of the lucky three to choose who is going to be the next government, a brief view of his proposed 20 point plan, submitted to both major parties, is something of an eye-opener into the 'mad hatter Katter' world of politics and policy. 
  1. No carbon tax, no ETS - not being a believer in climate change, his view fits perfectly in line with the right faction of the Coalition. Thus his ability to squash any new environmental bills the Greens want to submit will make for entertaining, yet ultimately depressing politics. 
  2. No mining tax - despite its numerous economic benefits and support from economists around the globe, this is another example of a politician in the pockets of the big miners. 
  3. More protectionist policies - while it's always good to make sure Australian industries are not swamped by overseas competitors, such staunch and rigorous protectionist policies would cripple other industries ability to access free trade deals (like mining!), let alone raise the cost of imports, which would add to inflation.... and the list goes on. 
  4. Greater government control of interest rates and the lowering of the dollar - I agree with the point our dollar should be lowered, but government intervention to do so... that's heading down the China road (and they're not too popular at the moment for that very reason). But government controlled interest rates! I question Katter's basic understanding of economics. The Reserve Bank sets interest rates according to Australia's rate of economic growth to maintain low inflation over the long term. Giving this power back to government's would result in governments manipulating interest rates in the short term for political reasons, without having much regard for long term economic effects. 
Another interesting Bob Katter reference includes his views on gay marriage. When asked what his stance was, he said "There are no gays in my electorate". I guess that's a no. But it's Bob's election advertisement that's something to be seen. 

But while 'mad hatter Katter' may be the new Wilson Tuckey of the parliament, but with a serious grip on power, what he represents as a powerful independent MP can't be denied. He's a breath of fresh air in a staling political system. 

Being an independent and not beholden to party lines, he is able to truly represent his electorate. He stands for land rights, fishing and shooting rights, rural benefits and parliament reformation. Having previously sat as an independent in parliament with little air time or ability to affect legislation, he's taking the chance to reform the system so even when there isn't a hung parliament, the government doesn't get to always dominate in the House of Representatives. But he's also introducing new ideas and policy. A national energy grid, elimination of biofuel excise and new policy about regulating the food retail industries oligopoly, just to name a few. He's a man with different ideas. Some are that right or left of field they take you by surprise, but others are serious issues that have been ignored by the major parties for fear taking a too hard a line. 

But now it's time for both sides, the ALP and Coalition, not just to work out what they can offer these three independents (now affectionately as the "block"), but what they can deliver for them through this vastly different parliament. Going back to the polls sometime soon is the most likely situation, because of the independents holding the balance of power in the House or Representatives, and the Greens (next year) holding the balance of power in the Senate. But until then, let's hope Bob Katter not only makes an informed choice about whom to make a minority government with, but that he also sit down and have a chat with someone from Treasury, regarding some of his proposed economic polices. 
Bob Katter says jury still out on whether he'll support Labor or Coalition - The Australian 
Abbott digs himself a hole - National Times (not an article specifically on Katter, but a general overview of this week in politics)