Saturday, June 11, 2011

Washington Post, Mr. Strauss-Kahn, IMF and the EuroDebt Crises

The Washington Post highlighted an article dated June 6, 2011 covering the Strauss-Kahn vs Sofitel Hotel Maid. One should restrain from commenting the case. The courts will decide on whether there are legal consequences to Mr. Strauss-Kahn's actions, and the French people will decide the political future of Mr. Strauss-Kahn.  

The human interest perspective of the article was intelligent and very refreshing. In general, the article would have been excellent had it not been for one unfortunate mishap. Early on, one reads incredulously the comment by the Post's journalist- Mr. Brad Dennis, who is following the case:

"Monday’s hearing was the latest development in a scandal that has sparked an  international media frenzy, tossed the IMF into chaos and endangered the agency’s efforts to stabilize the European debt crisis."

I have a problem appreciating that the IMF is in state of chaos and a greater problem understanding why  Mr. Strauss-Kahn's absence from the IMF should endanger the efforts to stabilize the European Crisis.

The man has been with the IMF for four years since 2007. His  presence certainly did not prevent the global financial collapse of recent years that surfaced in 2007, nor did it appease the intensity of subsequent recessions, nor contain the quasi meltdowns of Iceland and Ireland and the debt crises of Greece and Portugal. This type of hyperbole or if it's the rendition of a third-party remark should be cautioned.

One can appreciate the figurative scope of the comment had it been a Keynes or a Mr. Paul Volcker. Even then! I am certain that Mr. Strauss-Kahn does not perceive himself in the same league as the former two, nor with Messrs. Bernanke or Greenspan. Nor did he aspire to be in that league. Mr. Strauss-Kahn's ambitions were, metaphorically speaking, groomed for greener fields.

The IMF as an institution is not charismatic, and its governors do not intend that it be predicated as such.  One hesitates to think of the embarassment felt by IMF personnel when one suggests that their reputations are tied to one person. One hesitates to think of the embarassment felt by its governors when a reputable newspaper suggests that the organization they oversee is only one layer deep and just that good!

If either is the case, spare the needy the expense of a sham and close it down.

That the future of Greece, of Portugal, indeed of the Eurozone Debt-Crisis, or any other sovereign in the world should be yoked in this manner to Mr. Strauss-Kahn, is inconceivable and moreso unacceptable. Mr. Strauss-Kahn is a competent economist, and was a fine Minister of Finance; but to reduce an Institution whose global stature and mandate is so critical to the development and stability of one hundred eighty-seven countries, to one person is scandalous! Mr. Strauss-Kahn himself would disapprove the comment.

If the above turmoil and discomfort is true, that is also a scandal.  Then some overseers and regulators should have the courage and decency to step down for having failed to ensure transparency and accountability, and be replaced with competent people.

If, on the other hand, the IMF is in chaos because the incident in New York can unravel other similar disclosures, that is a governance issue of a different type. The readership requires the precision to avoid such ambiguity. 

On the succession issue: one should caution the Eurocentrism that is pervading the IMF and the World Bank. There are very good people with very good ideas beyond Europe, quite deserving of the opportunity to change things and make a difference.

This is a reprint of a posting that appeared on June 8, 2011

Wednesday, June 8, 2011

41st Parliament: Budget Debate- Day 1

Aristotle's Rhetoric Bk 2.1 1378a: It necessarily follows that the speaker who is thought to have all these qualities [intelligence, character and good will] has the confidence of his hearers.

Laurels:
Mrs. Duki Ashton (NDP) Churchill, Manitoba
Mr. Philip Toone (NDP) Gaspésie-ile-de-la Madelaine, Québec
Mr. Geoff Regan (Liberal) Halifax West, Nova Scotia



Washington Post, Mr. Strauss-Kahn, IMF and the EuroDebt Crises


 This morning's Washington Post highlighted an article dated June 6, 2011 covering the Strauss-Kahn vs Sofitel Hotel Maid. One should restrain from commenting the case. The courts will decide on whether there are legal consequences to Mr. Strauss-Kahn's actions, and the French people will decide the political future of Mr. Strauss-Kahn.  

The human interest perspective of the article was intelligent and very refreshing. In general, the article would have been excellent had it not been for one unfortunate mishap. Early on, one reads incredulously the comment by the Post's journalist- Mr. Brad Dennis, who is following the case:

"Monday’s hearing was the latest development in a scandal that has sparked an  international media frenzy, tossed the IMF into chaos and endangered the agency’s efforts to stabilize the European debt crisis."

I have a problem appreciating that the IMF is in state of chaos and a greater problem understanding why  Mr. Strauss-Kahn's absence from the IMF should endanger the efforts to stabilize the European Crisis.

The man has been with the IMF for four years since 2007. His  presence certainly did not prevent the global financial collapse of recent years that surfaced in 2007, nor did it appease the intensity of subsequent recessions, nor contain the quasi meltdowns of Iceland and Ireland and the debt crises of Greece and Portugal. This type of hyperbole or if it's the rendition of a third-party remark should be cautioned.

One can appreciate the figurative scope of the comment had it been a Keynes or a Mr. Paul Volcker. Even then! I am certain that Mr. Strauss-Kahn does not perceive himself in the same league as the former two, nor with Messrs. Bernanke or Greenspan. Nor did he aspire to be in that league. Mr. Strauss-Kahn's ambitions were, metaphorically speaking, groomed for greener fields.

The IMF as an institution is not charismatic, and its governors do not intend that it be predicated as such.  One hesitates to think of the embarassment felt by IMF personnel when one suggests that their reputations are tied to one person. One hesitates to think of the embarassment felt by its governors when a reputable newspaper suggests that the organization they oversee is only one layer deep and just that good!

If either is the case, spare the needy the expense of a sham and close it down.

That the future of Greece, of Portugal, indeed of the Eurozone Debt-Crisis, or any other sovereign in the world should be yoked in this manner to Mr. Strauss-Kahn, is inconceivable and moreso unacceptable. Mr. Strauss-Kahn is a competent economist, and was a fine Minister of Finance; but to reduce an Institution whose global stature and mandate is so critical to the development and stability of one hundred eighty-seven countries, to one person is scandalous! Mr. Strauss-Kahn himself would disapprove the comment.

If the above turmoil and discomfort is true, that is also a scandal.  Then some overseers and regulators should have the courage and decency to step down for having failed to ensure transparency and accountability, and be replaced with competent people.

If, on the other hand, the IMF is in chaos because the incident in New York can unravel other similar disclosures, that is a governance issue of a different type. The readership requires the precision to avoid such ambiguity. 

On the succession issue: one should caution the Eurocentrism that is pervading the IMF and the World Bank. There are very good people with very good ideas beyond Europe, quite deserving of the opportunity to change things and make a difference.

Tuesday, June 7, 2011

41st Parliament and the Rise of Rhetoric

Somewhere in the Maritimes, a brilliant and distinguished historian, former student of an indomitable icon-blaster, is writing the History of Canada: The Harper Moment 2011-2016. 

That’s a long time ago!

She wears original fabrics: brands that are now fetish. She recalls with some nostalgia the Scottish-British, New England-American and Italian origin of the wears. Her spouse anecdotes that she enjoys the classics: George Eliot, George Sand and Colette. He enjoys William Vollmann and David Foster Wallace: reads vintage 50 years and over. Eclectics and dandies are all classics by now. Classic types form a perfect mélange. I never asked her why she wore no Canadian fabrics.

I was asked to read her final manuscript. When publishers ask for my ‘feelings’. I usually insinuate that the texts no longer feel like Pauline Kael, George Woodcock or James Wood. 

In this author's case, the impression is different. In her introduction, our distinguished historian cites Santayana: Those who cannot remember the past are condemned to repeat it. Thereto, she narrates by metaphor and analogy. As such, the story of the 41st Parliament is an assemblage of brilliant minds, like the Solvay Conference of 1927, wherein participated the best and the brightest (who quilled that?) minds of the time to declare the 'correct version' of quantum theory. That’s a long time ago!  Almost one hundred twenty-five years ago, and as an aside,  although there was some compromise over the  'better version', not the definitive version, physicists still don’t understand the theory. To some extent, Parliament is also about versions of national interest and national solutions to problems in dealing with that reality, wherein hopefully, the better solution will be found and implemented.

The author will reconstruct the ‘road taken’ that led to that monumental rhetorical theatre that marked the beginning of an epochal political assembly. She will narrate the rise of a lone-gun, Mr. Stephen Harper, the  devolution of a Liberal tradition with Messrs. Martin and Ignatieff, la Grande Seduction of Mr. Layton and the parsimonious and successful campaigns of both talented Mrs. May and Mr. Mulcair.  Mostly, she commends the Return of the Natural: sine qua non-Mr. Robert Rae. It would have been a great assembly without Mr. Rae; it became a monumental Parliament with Mr. Rae. All Halberstam's best came to town for this High Noon.

She further emphasizes in her Introduction that ‘No Commons had auspiced such eloquence as the 41st Commons. No assembly of able voices had delivered their prescriptions and denouncements with such thunder, abandon and conviction within the walls of the Commons since the Golden Ages of Canadian Oratory which had witnessed the towering elocutions of Diefenbaker, Douglas, Pearson, Trudeau, and then the riveting interlocutions between Trudeau, Stanfield, Caouette and Broadbent. In fact, no Parliament in recent memory could evince so much controversy, vibrato, passion vexation and admiration as the 41st Parliament’

The author singles out the personas: the audacity and confidence of Mr. Harper, the compassion and incisiveness of Mr. Layton, the passion and insight of Mr. Rae, and the  trenchant pindarisms of Messrs. Dion,  Mulcair, Coderre, May, Goodale, Cotler-all versing and reversing History; all and more deciding and non-deciding the future of the Criminal Code; disclaiming visions and  claiming revisions of the Electoral Map-all embattled veterans and inspired novices denouncing injustices towards seniors, workers, families, inadequate pensions, inappropriate working conditions, climate change, first nations, minorities, regional development and on...all glazed by the revel of high rhetoric.

As enlightened a critic and competent an author, she will focus on the semiotics that embellish and legitimate the oral bravados and bravuras of  great Parliamentarians. She will highlight that Mr. Harper, alone, won a majority Government without Quebec; that Mr. Layton became the first federal NDP leader to assemble a Loyal Opposition and carry  the Quebec majority, that Mrs. May was the first leader of the Green Party to bench as sole representative of her Party and finally, our distinguished scholar will underline that Mr. Rae-after a self-imposed political exile, as some say, returned to lead a liberal opposition, attempt to rebuild a tradition whose ways and means were fragmented and scattered in places so unknown as to be forgotten. It was a session where Messrs. Harper and Rae traveled the country more than any Leaders of  previous decades-the former redefining charisma and the ‘average Canadian’, the latter constructing an appropriate organization and redefine the Liberal tradition.  Mr. Harper, according to our author, will have succeeded; Mr. Rae will have encountered too many politically illiterate obstructions that should have been shelved up front.

On the strategic plane, Mr. Harper will have adjudicated his Government’s fiscal and industrial policy in the midst a strong Canadian dollar, of rising unemployment, growing income disparity and regional disparities, depleting housing and health services, increasing federal, provincial and municipal deficits and overall increases in debt-servicing. Notwithstanding, our distinguished historian will point out the institutional cautions of the Bank of Canada, the IMF and the World Bank in face of a resurgence of Keynes, circuit theory,  and chartalism which signaled the oncoming of another major seismic rupture in the classical economic model- the same undetected symptom that had preceded and perpetrated the financial collapse of 2007 and the ensuing recessions, and had pervaded the ineffectiveness and undermined the economic policy efforts of Mr. Harper's minority governments. She identifies Mr. Harper's success notwithstanding this global pandemonium,  resulting from his intelligent rendition of Canada’s performance in contrast to the declining growth rates and higher unemployment rates of the European and the American economies, but avoiding comparisons with evident economic prosperity in industrial Asia.  In fairness, she counterpoints the passionate interventions of Messrs. Layton and Rae, in that order, who remind the Government of the continuous depletion of natural resources and public infrastructure, the increasing costs of education, health and transportation, the commensurately decreasing quality of services in those sectors, and the insidious threat of privatization of critical public assets as well as the significant decline of per capita net disposable income. In a vein similar to her opposition colleagues, Mrs. May's ire will raise subtle bickers when she exposes the disinvestment of the government towards the environment and voice her concern that Canada's position in securing the contracted compliance in that sector is no longer credible, as is its foreign policy with respect to the Arctic no longer credible. Mr. Rae and Mr. Layton will remind Government of the heightening tensions in federal-provincial relations, impoverished conditions of Canadian fresh water supplies, fisheries and the timber industry and will raise the stakes of the deliberation pointing out the demise of Canada's manufacturing industry, the burden of taxation on a shrinking  middle-class and the global snicker that Canada is returning to a primary sector economy with an underlying dependency matrix. All, from the Ottawa Assembly, at High Noon.

Our author will conclude her introduction by citing the indomitable M. Marcel Trudel, vindicated by Quebec after generations of neglect by political clerics that either couldn’t read the great rogue mind and/or had no clue how to decode meanings from facts and data.  She will then rhetorically challenge the readership to find another modern-era Canadian Parliament whose participants had displayed more intensity, more imagination and more passion deliberating the State of our Union.

She will acknowledge in an epilogue the long and fruitful discussions she cherished with another renowned historian, credit the best of the script to him and the worst to herself while

somewhere in Alberta, the credited historian, renowned through his own efforts,  student of the implacable ironist and tyrant of the word, will be editing his Master's wits, dating the latter's dantesque memoirs, proofreading speeches, articles, and resetting the correspondence for his second volume on The Fall and Rise of Canadian Polity: The Orators. He will outline  Speaker Milliken’s era which preceded the Harper Moment and highlight the selection of young Mr. Sheer as Speaker for the 41st Parliament of Canada….and after a slight distraction, refocused his thoughts and selecting a HB 2, Mirado classic pencil from his leather pouch, will jot down in his three-holed Hilroy Canada Exercise book from his own childhood “By ascribing a Moment to the Harper term, my most distinguished colleague lavishes enormous notoriety upon Mr. Harper in anticipation of Clio's verdict.
...and then returning to his own work, footnotes besides a circle of names Ambition…the glorious fault of angel and gods’ [Alexander Pope].

[Part 2 to be continued]