Merryl Lynch credentials

National leader John Key recently cited his work experience at investment bank Merrill Lynch as a the kind of experience that suited him to be PM.

Key was a top money trader at the bank before he entered politics. While to some extent that is history and he can't be blamed for that company's difficulties neither should we accept that this experience is good for the country. It is the high risk, short term, make-money-at-whatever-cost mentality of such banks that got them into trouble and will get NZ in trouble if we follow the same strategy. The only credentials that Merrill Lynch offers John Key is the fact that he has the same DNA as investment bankers, he is wired in the same way, he has the same primary motivation and if allowed to lead the country will head us on the same precarious path. And if i may add another metaphor to my colourful mix "a leopard can't change its spots".


As Micheal Cullen said just last week

"He [Key] has got a short-term profit-maximising mentality, and that is what has brought Merrill Lynch and Lehman Brothers . . . to their knees. Do you want someone like that running the New Zealand economy when we are going to be going through a difficult period?" (Press, 17 Sep 2008)

Greed cometh before a fall

GREED and Capitalism

Another American bank falls over and Alan Greenspan of the Federal reserve says it is a 'correction in the market' the like of which happens about every 50 or 100 years. It is the worst correction since the 1929 stock market crash which lead to the Great Depression. In NZ finance companies are toppling over at record rates. Investors have lost millions and house prices have slumped. Is this just what you have to put up with in a free market economy or is it a sign that the free market actually needs some regulation and intervention?
There is a common factor in all of this and its the old deadly sin of greed. It is greed that causes banks to make ridiculous loans to people who can not afford them. Its greed that drives consumer demand for high interest rate returns and high risk investments. Its greed that causes people to speculate on the property market pushing house prices to extraordinary levels. No doubt greed will be a factor as people now seek to take advantage of other peoples misfortunes, in lawyers fees for extended legal battles, mortgagee sales, and further speculation in the property market. Its a high risk game with few winners and lots of losers. Free market capitalism is a natural ally of human greed and for this reason alone we need a third way in the economy that allows for enterpise and industry to be rewarded but greed to be kept in check.

Summary of Internatioanl Aid discussions

Faithful Global Citizenship draft discussion paper

At its third annual conference the Forum of the Christian Left (FOCaL) discussed New Zealand’s role as part of the global community. Several areas were highlighted and a consensus emerged around the key issues. These issues are presented from a progressive Christian perspective that is “dedicated to striving for peace and justice among all people, protecting and restoring the integrity of all God's creation, and bringing hope to those Jesus called the least of his sisters and brothers”

New Zealand’s contribution to World Aid

With respect to the current situation we found some things that were commendable, some things that were in need of review and some things that needed urgent action.

Commendable.

We commend the Labour-led government for its commitment to increasing the percentage of GNI given to world aid through the agency of NZAID.
In 2000 all members of the UN, including New Zealand, committed to eight Millennium Development Goals (MDGs) to halve global poverty by 2015.

They signed eight specific goals:

1. To eradicate extreme poverty and to halve the proportion of people living on US$1 a day.
2. To provide universal primary education.
3. To ensure women's equal rights and opportunities.
4. To reduce infant mortality by two-thirds.
5. To reduce maternal mortality by three-quarters.
6. To halt the spread of HIV/AIDS and other diseases.
7. To ensure environmental sustainability.
8. To establish a global partnership for development.

In order to achieve these goals, developed countries need to reach the UN-agreed target of giving 0.7 percent of Gross National Income (GNI) to aid by 2015.

• 
  We commend the government for its commitment to the MDGs and urge it to keep its commitments.
• We welcome the way NZAID allows voluntary giving to be supplemented by government giving.
• We welcome the fact that NZAID offer accreditation for NGOs and thus we can give with confidence that our gifts are well used.
• We affirm the need to keep NZAID accountable to government but sufficiently removed from ministerial input so as to keep the provision of aid as non-political as possible. NZAID should not be seen as an arm of Foreign Affairs nor should aid money be used to further NZs political interest internationally.
• We commend the work of the Coalition for International Development and ask that the Government works closely with this group and provides adequate funding for its advocacy and policy writing work.

In need of Review

• Concerned was raised as to how well NZAID might adapted to significant increased in aid giving. Should the government keep its commitments and increase Aid to 0.7% of GNI by 2015 is NZAID adaptable enough to cope or would it become a bottle neck slowing down the deployment of aid and restricting NGOs who are ready to go.
• We wondered what mechanisms were in place for NGOs to provide feedback to NZAID and have an input into policy development. It was felt that if that was not kept under constant review then NZAID could suffer from bureaucratisation from NZ based policy writers while the experts in the field were ignored. We felt that it was important that the expertise of NGO fieldworkers be recognised and systems put in place to ensure that policy was adjusted to keep pace with changes at the coal face of delivery.
• The profile of NZAID was felt to be low. It was felt that this needs to be increased so that the general public had a better understanding of the way we contribute to International Development.

Urgent Action Required

• Deep concern was raised that at current rates of increase we are not going to meet our obligations to be at .7% by 2015. On top of this there seems to be no strategy in place to attain this goal. Currently it appears that the finance minister reviews NZ contribution annually but that no long term strategy of increase has been implemented. We urge action on this.

Wider Issues

The recent debate in NZ around tax cuts has highlighted a concern for members of FOCaL that NZ is dangerously self-centred and lacks concern for the poor in the global community. We would like to see New Zealand playing a full part in helping to combat global poverty and recognise that the church and other community groups have a role in promoting a change of heart. There are many complex issues which need to be addressed, such as consumerism, sustainability, education. We urge the church to promote simple lifestyles that other may simply live. We urge community groups to foster awareness of international issues and encourage partnerships with aid projects. We would like to see development studies promoted at secondary and tertiary levels.
There is a need for public education. It was felt that Kiwis generally believe that we do well in terms of our giving internationally yet we are 3rd bottom of the OECD nations and we are falling behind on our commitments. While the government is technically committed to the MDGs they need public support to justify increased giving. Currently the public seems interested in getting bigger tax cuts and increased social service for Kiwis. New Zealanders believe that we can punch above our weight on international issues as we have done in the past, say on nuclear weapons. We need visionary leadership that can convince the public that we should take the moral high ground here by rapidly and carefully increasing our aid so that we may then encourage other nations to do the same. Aid needs to become a political issue and an election issue.
Focal urges it members and friends to write in support of government initiatives to increase aid giving, to write to local MPs asking that MDG targets are pursued. We encourage social justice groups within the church to write and make submissions on this issue. We urge church leaders to speak out on issues of international injustice and encourage the Christian community to put pressure on the government as well as continuing to increase its own voluntary aid giving. We encourage the church community to live prophetically challenging consumerism, ‘entitlitis’, selfishness and greed.