Money And Morality: Oil And Water.

Familiar Excuses: Those wondering why our Prime Minister was so willing to countenance a reputationally damaging breaking of Air New Zealand's contract with the Saudi Arabian navy should wonder no longer. Pieces are in motion on the Middle East chessboard. The interests of the majority shareholder in Air New Zealand are, accordingly, in flux. Jacinda Ardern has sniffed the wind and smelled Joe Biden’s aftershave.

CAPITALISM IS CHANGING. Twenty years ago, the sole obligation of a capitalist enterprise (other than abiding by the laws of the states in which it operated) was to generate a return on its shareholders’ investment. So entrenched was this notion that it was specifically referenced in the legislation giving effect to the free-market reforms of the 1980s and 90s. Not anymore. In today’s climate, the interests of shareholders are expected to give way to the moral convictions and/or objections of journalists and politicians. The pursuit of profit now comes second to the quest for ethical perfection.

The current furore engulfing Air New Zealand’s commercial relationship with the Saudi Arabian Navy illustrates the many problems associated with mixing money and morality.

A quick Google search established that, in the words of the Sanctions Scanner website, “there are no formal international sanctions implemented against Saudi Arabia”. Following the gruesome assassination of the journalist, Jamal Khashoggi, in 2018, the US Congress briefly considered imposing unilateral sanctions, but nothing came of it. (In matters relating to “The Kingdom” nothing usually does.) Put simply, there was and is no legal impediment to Air New Zealand entering into a commercial relationship with the Saudis. The company saw an opportunity to make money for its shareholders – and took it.

Yes, but, the Saudi navy is blockading the war-torn nation of Yemen, a country constantly teetering on the brink of humanitarian catastrophe. Refurbishing the gas turbine engines of its warships places the national carrier in the invidious position of at least appearing to be aiding and abetting the perpetrators of acts which some critics of the Saudi regime have alleged to be war crimes.

Some critics? Therein lies the problem. Yemen finds itself in the unfortunate position of being caught up in the struggle for regional supremacy between the Kingdom of Saudi Arabia and the Islamic Republic of Iran. By means of its naval blockade, and intermittent bombing sorties, the Saudi regime has been able to prevent Iran’s proxies – the rebel Houthi militias – from over-running completely what remains of the Saudi-friendly forces associated with the government of President Abdrabbuh Mansur Hadi. The Saudis’ extremely restricted military options in this ferociously complex civil war leave them acutely vulnerable to accusations of war crimes. To date, however, international opprobrium has been deemed preferable to an Iranian ally controlling the geopolitically critical entrance to the Red Sea.

Not that the most vocal critics of Air New Zealand’s association with the Saudis have much to say about geopolitics. For the Greens’ Golriz Ghahraman, the fact that people (many of them children) die in wars is sufficient reason for New Zealand to have nothing to do with them. For Valerie Morse, one of the most outspoken critics of New Zealand’s small but innovative arms industry, there can be no excuse for even the most peripheral involvement of Kiwi companies in the production or refurbishment of military equipment – especially a company whose majority shareholder is the New Zealand state.

All very noble and principled of this outspoken duo, whose political stance, in addition to being high-minded, is also (dare we say it?) guaranteed to attract massive support on Twitter, Instagram and Facebook.

Less ethically lustrous, perhaps, is the consideration owed to Air New Zealand’s highly skilled engineering workforce. With their usual flow of contracts stemmed by the Covid-19 pandemic, the Saudi refurbishment job was likely seen as a godsend. That nobody asked too many questions about what these refurbished engines might be powering is entirely understandable. Air New Zealand’s engineering capabilities are an important contributor to its international success. Management had every right to assume that, as the company’s majority shareholder, the New Zealand state has a vested interest in keeping one of its airline’s most efficient operations economically viable.

It would have been equally understandable if those involved in, and associated with, the contract saw the whole exercise as part of a much bigger picture. New Zealand is, when all is said and done, still a member of what John Key called the Five Eyes “club”. With the two biggest exporters of arms to the Saudi kingdom being fellow Five Eyes members the United States and the United Kingdom, and with the Aussies revving-up their own arms industry in sympathy, New Zealand pitching-in to the geopolitical working-bee may well have been seen as the shrewdest move – diplomatically-speaking.

The Iranians already possess the capability of closing the Strait of Hormuz at the entrance to the Persian Gulf. Allowing them to close-off the entrance to the Red Sea would be greeted with alarm and dismay by all those nations dependent on the oil and natural gas reserves of the Arabian peninsula. That’s not just us, by the way, but also our biggest trading partners China and Australia.

To Ms Ghahraman and her Green colleagues, the prospect of so dramatically exposing the world’s dependence on fossil fuels was, no doubt, an alluring one. Unfortunately, the global economy is nowhere near being able to do without coal, oil and natural gas. For many years to come, the strategic criticality of Middle East oil will drive the decision-making of nations much larger and more ruthless than New Zealand.

That the very existence of the Air New Zealand-Saudi relationship came to light at all may be related very closely to the recent political shifts in the biggest and most ruthless nation of them all – the United States of America. On 4 February 2021, America’s new president, Joe Biden, delivered a foreign-policy speech in which he signalled the USA’s unwillingness to let the bloody stalemate in Yemen continue.

“This war has to end,” said Biden. “And to underscore our commitment, we’re ending all American support for offensive operations in the war in Yemen, including relevant arm sales.”

Those words should not be interpreted as an indication of the USA’s willingness to let the Iranians claim victory – far from it. What Biden’s announcement portends is Washington’s impatience with the Saudi regime’s military inadequacies. Donald Trump may have taken its Crown Prince’s assurances that his armed forces were more than a match for Houthi militiamen, but Biden is much more willing than his predecessor to believe the evidence of his military and diplomatic experts on the ground. Uncle Sam is getting ready to butt some intransigent heads together. Mohammed bin Salman’s ambitions will be put on ice, while the Iranians will be offered an end to crippling US sanctions if they undertake to help broker a lasting peace in Yemen.

Those wondering why our Prime Minister was so willing to countenance a reputationally damaging breaking of the gas turbine contract should wonder no longer. Pieces are in motion on the Middle East chessboard. The interests of the majority shareholder in Air New Zealand are, accordingly, in flux. Jacinda Ardern has sniffed the wind and smelled Joe Biden’s aftershave.

Maybe capitalism hasn’t changed that much after all?

This essay was originally posted on the Interest.co.nz website on Monday, 15 February 2021.

If We'd Been Lucky.

The Big IFs: We are so unlucky that it has come to this. Especially when, had things worked out just a little differently we might have had a chance. If Florida’s voters had swung decisively behind Al Gore in the 2000 US Presidential Election. If the Baby Boom Generation hadn’t abandoned their idealism for cycling holidays in France and a renovated kitchen. If the Millennials possessed an attention span just a little bit longer than a goldfish’s. If the Internet hadn’t allowed us all to become so stupid.

NOBODY WANTS TO KNOW. That 150 academics have put their name to a letter urging the government to do something – anything – about  climate change: nobody wants to know. The letter itself is a response to the latest report from the Intergovernmental Panel on Climate Change (IPCC). That report gives the world just 12 years to fundamentally refashion industrial civilisation or face runaway global warming. But, nobody wants to know.

We are so unlucky that it has come to this. Especially when, had things worked out just a little differently we might have had a chance. If Florida’s voters had swung decisively behind Al Gore in the 2000 US Presidential Election. If the Baby Boom Generation hadn’t abandoned their idealism for cycling holidays in France and a renovated kitchen. If the Millennials possessed an attention span just a little bit longer than a goldfish’s. If the Internet hadn’t allowed us all to become so stupid.

Al Gore would almost certainly have got Bin Laden before he got America. (The Democrats recognised Osama as a threat, the Republicans were more focussed on Iraq and Iran.) So, no 9/11. No War on Terror. No invasions of Afghanistan and Iraq. A less crazed world. A real chance that the big global players: the USA, the UK, the EU, China, Japan and the Russian Federation might have trusted each other enough to come together around the science and take climate change seriously.

What would that have looked like? Well, if we’d been lucky, the Big Six would have pooled their resources and “internationalised” the fossil fuels industry. The slow and painful process of weaning the world off oil and coal could have begun – unimpeded by the oil industry’s denialist propaganda.

Encouraged by their success, the Big Six might then have embarked on an equally grand international effort dedicated to moving the world towards the adoption of renewable energy. Unburdened by ruinous levels of military spending, the leading economies would have been free to invest billions in the development of sustainable industrial processes.

The effect on the world’s peoples of all this global co-operation in the name of bequeathing a healthy planet to future generations is readily imagined. The audience for the promoters of jihad would have shrunk away to nothing – especially after the Big Six imposed a just territorial settlement on Israel and the Palestinians and then guaranteed the peace that followed. Rather than the disillusionment and despair that followed the world’s horror-filled descent into post-9/11 extremism, the example of the great powers working together would have engendered a global spring of hope.

Global finance would not have been happy but, in the new atmosphere of “can do” internationalism, the nostrums of neoliberalism would have lost much of their persuasive force. “Globalisation” would have acquired a new and extremely positive set of associations and the electorates of the world’s nation-states would have been quick to punish any political party which set its face against the humane and ecologically-informed values of the new era.

The United Nations, now lavishly funded by the Big Six, would not so much have assumed a greater role in global governance as had that role thrust upon it. At long last, the idea of a single world army was no longer being dismissed out-of-hand by the five permanent members of the Security Council. Indeed, driven by the Big Six, a new World Security Force, composed of contingents contributed by all of the UN’s member states, would soon be standing guard over the Pax Humanitas.

Not that there were very many enemies left to fight. With the production of weapons now a strictly controlled UN monopoly, the promotion and extension of human conflict was no longer a paying proposition. Indeed, because we had been lucky all those years before, the commemoration of World War I became the excuse for a very special international undertaking. On the eleventh hour of the eleventh day of the eleventh month 2018, the last nuclear weapon in the world was decommissioned.

Except, of course, we weren’t lucky. The world has not drawn closer together, it has grown farther apart. In the eighteen years since November 2000 the urgent remedial effort required to slow anthropogenic global warming has not taken place. The scientists see what’s coming. They’re begging us to, please, do something!

But nobody wants to know.

This essay was originally published in The Otago Daily Times and The Greymouth Star of Friday, 23 November 2018.

Corporate Conspiracies.

What's Your Poison? It is only in the last few years that the world has learned of the American sugar industry’s successful battle to suppress the science linking excessive sugar consumption with heart disease. In a tactic borrowed from the tobacco industry, scientists working for the sugar barons heaped doubt upon the emerging evidence and diverted scientific attention towards saturated fats as the primary cause of heart disease.

 

CONSPIRACY THEORIES have long fascinated me: ever since I laid eyes on a document known as “The Gemstone File” nearly 40 years ago. If I quote just the first few sentences from the cover-page, you’ll understand why I found it so hard to put down:

 

Tell me what it is, dear editors, before I get into it.

My dear, it’s heavy.

What is its history?

It’s an anonymous manifestation mailed from Tucson, Arizona, to a fanatical friend of The Fanatic, who insisted it should be published for the good of the North Indies – that radiated land improperly referred to by trivialists as America.

What does it mean?

It’s mean. It names names, and pushes punches right back where they came from.

On whose behalf?

God and the Revolution … If this planet’s a corporation, it’s a corpse.

 

In the age of the Internet this sort of pitch is commonplace: the staple fare of wild-eyed conspiracists the world around. Back in the late 1970s, however, when practically every form of written communication was carried on the surface of pulped trees, a document like “The Gemstone File” rapidly acquired semi-mystical status. It was passed from hand-to-hand; photocopied to the point of illegibility; puzzled over and debated through long nights of drug-fuelled paranoia.

 

The very best kind of undergraduate fun!

 

Whoever wrote “The Gemstone File” was right about one thing though: if this planet is a corporation, then it is a corpse. But even in the fevered brain of The Fanatic and his fanatical friends, it is unlikely that fantasy ever outstripped the true extent of corporate mendacity.

 

It is only in the last few years, for example, that the world has learned about the American sugar industry’s successful battle to suppress the science linking excessive sugar consumption with heart disease. In a tactic borrowed from the tobacco industry, scientists working for the sugar barons heaped doubt upon the emerging evidence and diverted scientific attention towards saturated fats as the primary cause of heart disease.

 

For nearly four decades the deadly impact of sugar on the health of people all over the world was downplayed. Not only was sugar’s major contribution to heart disease minimised, but its crucial role in fuelling the West’s burgeoning levels of obesity was also deliberately obscured. The inevitable outcome of a sugar-laden diet – a global epidemic of Type 2 Diabetes – looks set to burden the health services of the world for many years to come.

 

Calculating the harm done by the American sugar industry is difficult. But the number of people who, since the 1960s, have had their lives cut short by heart attacks, strokes, and the deadly consequences of undiagnosed and untreated Type 2 Diabetes, must run into the tens-of-millions.

 

It is difficult to comprehend the psychological make-up of people who, in the name of selling tobacco and sugar, were willing to suppress and/or denigrate the scientific evidence pointing to these substances catastrophic effects on public health. That they entered into genuine conspiracies to thwart all attempts to mitigate the harm caused by their products is indisputable – as is the conclusion that they have the blood of millions on their hands. And yet, somehow, they still manage to carve their Thanksgiving Turkey and ruffle the curls of their grandchildren. Death on an obscene scale is simply written-off by these corporate killers as the cost of doing business.

 

And it’s still going on. The tried and true tactic of denying and/or debunking “inconvenient” scientific evidence was adopted with undeniable success by the oil industry as it became increasingly clear that anthropogenic global warming was fossil-fuelled. Once again the hired scientific guns of the big corporations were dispatched to undermine every effort to reduce carbon emissions. That a majority of Americans are now convinced that man-made climate-change is a “hoax” bears testimony to the efficacy of the tobacco and sugar barons’ ‘big lies’. That a planet rendered incapable of sustaining human civilisation might be the ultimate outcome of their public relations exercise did not slow them down.

 

The author/s of “The Gemstone File” devoted considerable creative energy to inventing a world ruled by individuals utterly consumed by greed, lust and ambition. Paradoxically, their villains are too charismatic, too grandiloquent, to be believably evil. True evil is nearly always the work of ordinary, or, to use Hannah Arendt’s superbly chosen adjective, “banal”, human-beings whose lack of empathy and atrophied imaginations make them the ideal carriers of the corporate disease.

 

How else could so many of them work so diligently for corporations that have piled up so many corpses.

 

This essay was originally posted on The Daily Blog of Sunday, 18 September 2016.