Wellyopolis

July 21, 2005

Why Americans might care about New Zealand's election

Like "worthy Canadian initiatives," foreign readers may yawn when they hear of "Elections due in New Zealand." Anyone still awake out there?

A brief primer on New Zealand politics can be found at the bottom of this entry.

For the first time since 1981 the likely winner is not clear in advance. Only a year ago the Labour government looked odds on to win another comprehensive victory. Now, the National party which was the dominant party in New Zealand politics between 1949 and 1984, has a chance to win a shot at government. Owing to the electoral system, any majority government would likely have to be a coalition with the populist and unpredictable New Zealand First party. Both Labour and National might well prefer to take their chances on running a minority government, seeking support on an issue-by-issue basis.

There are a couple of reasons Americans might care about the New Zealand election. The first is trade. Both the Labour and National parties are committed to free trade. New Zealand's commitment to further liberalization of world trade is not going to change with this election. Labour's trade diplomacy has been to support the ongoing World Trade Organisation negotiations, pursue free trade agreements with small countries (recently concluding an agreement with Chile and Singapore. This is not as crazy as it sounds), and to plough ahead with further economic integration with Australia. (For whatever reason, it has historically been the norm that New Zealand and Australian bilateral relations are strongest and most productively focussed on issues of joint concern when the domestic governments are not of the same party.)

Both parties would love to negotiate a free trade agreement (FTA) with the United States. However, it's pretty clear that the current American administration does not really negotiate free trade agreements, it "negotiates" "free trade" agreements.

The Bush administration has pretty clearly demonstrated that it will put out the trade agreement it wants, and it's a take it or leave it offer for the other country, and American industries with an interest in the trade deal. That's not really negotiation. It's also not really free trade.

The Australian FTA proposal, a good template for what New Zealand might be offered, required Australia to substantially modify its pharmaceutical purchasing and pricing policies, and in exchange accept fairly limited access to the American market for its primary produce (meat and wool).

It's also clear that the Bush administration sees trade diplomacy as having a symbiotic relationship with security and military diplomacy. Australia was offered a FTA because it had been supportive of American foreign policy after 9/11.

Such are the realities of great power politics. It has been made fairly clear to New Zealand that a bilateral FTA will only follow when the New Zealand government modifies its foreign policy in other areas. For a while, the US clearly hoped that NZ might offer more than the 40 engineers it had sent to serve with the British in Iraq in late 2003. But now it's clear that the US is going to have trouble convincing anyone to pony up men or troops for Iraq, the sticking point in relations has returned to being New Zealand's ban on nuclear powered or nuclear armed ships entering its waters.

New Zealand's security position is relatively benign. Situated where it is, several thousand more miles from Asia than Australia, the country's perception of international threats is quite different. While Australia has legitimate security concerns because of its proximity to Indonesia, New Zealand has a much larger moat to hide behind. This is not to defend a blindness to the world situation, but merely to indicate that there are good reasons for New Zealand to believe it faces few external threats to its sovereignty in the near future. It may be that in 10 or 20 years, Indonesia or China or Vietnam, or some other large Asian country does pose a threat to New Zealand's security, but the cost-benefit on arming against low-probability, distant threats is small.

Similarly, because of New Zealand's geographic location, the public wonders why the US should find it so necessary to its global strategy to send nuclear armed or powered vessels. Not to put too fine a point on it, but the most common reason for foreign navies to visit New Zealand ports is so that sailors can have sex. I exaggerate slightly, to be sure, but "R&R" is a major reason for naval visits to New Zealand.

For both these reasons—public perception of limited external threat, and scepticism about New Zealand's importance to global strategy—the anti-nuclear policy remains very popular. Eighty percent of the population support the ban. This constrains any government that has to deal with the United States.

The National party put out feelers earlier this year about repealing the ban on nuclear powered vessels, and was pilloried in the press for doing so. Subsequent statements on the matter have been much more cautious, with the leader musing that any change might have to be approved by a referendum. Nevertheless, it's clear that the National Party is prepared to "modify" the nuclear ships ban, in pursuit of a FTA with the United States.

Thus, the results of the New Zealand election are likely to have some impact on relations at the inter-governmental level. My own view is that Labour's policy and instincts have been broadly right. The chimera of a bilateral FTA with the United States is not worth so much as to accept the approach of linking trade and military/security diplomacy. If the US market was much more important to NZ than it is, or the bilateral FTA could be expanded to include other countries, then the benefits might be greater it might be worth it.

But as it stands, bilateral trade agreements are clearly inferior to freer world trade, and it's not clear how long the Bush administration's linking of trade and security diplomacy will last. Putting one's diplomatic efforts into the WTO negotiations is likely to have a larger, long-term payoff for New Zealand. It is clear that any Bush administration-negotiated "free trade" agreement for New Zealand would maintain substantial barriers to real free trade in agricultural products. That's a shame, because American consumers are losing out on cheaper meat and diary products than they currently have.

While I'm not privy to whatever has been said between governments, the debate in public about the nuclear ships ban suggests that neither side has worked behind the scenes for a compromise. On the one hand, the Bush administration waxes loud and long about the importance of democracy. On the other, it then puts pressure on friendly countries to ignore what their voters believe. We saw this in the run-up to invasion of Iraq when the Chilean government was caught between 90% domestic opposition to the invasion, and the government's desire to maintain good relationships with the United States.

The way forward for the next New Zealand government (nothing will happen until after the election), Labour or National, should be to inform the American government privately that they would welcome a conventional ship visit, and to suggest a suitable vessel. After all, information on the power source of American navy ships is publicly accessible in Jane's Fighting Ships.

The other way forward is for the governments to co-operate on soft power issues. I've said before (but am too lazy to link to it) that one of the flaws in America's official soft-power strategy at the moment is the hubris that the United States is the only force for democracy in the world. World's oldest democracy, blah, blah, blah ... If only it were true. A little recognition that other countries have substantial experience with democracy as well, might actually help in spreading democracy. As well as the older democracies (like New Zealand), it seems that the lesson of the last twenty years from places like South Africa, Chile, Taiwan, South Korea, Spain, and Mozambique is that democracy can grow and flourish in diverse conditions and cultures.

The trouble with democratization as a diplomatic goal is that democracy is a process, not an outcome. American official pronouncements speak as if repealing legislation, like the nuclear ships ban, with 80% popular support, were so easy. It's not, and it's even harder when governments appear to have been walked into that position under pressure. New Zealand's election will have little consequence for many Americans, but it will be interesting to observe whether the Bush administration has learned much about diplomacy in friendly countries. When an administration can't even manage its relationships with its friends, its no wonder they struggle with their enemies.

Potted introduction to New Zealand politics

New Zealand is a constitutional monarchy, with a unicameral parliament. The executive is drawn from the members of the legislature (=House of Representatives). The Prime Minister is the head of the Cabinet, and [generally] the leader of the largest party grouping in the House of Representatives. The House has 120 Members of Parliament (=MPs)

Elections must be held at least every three years, but the government can call an early ("snap") election at any time if they feel like it.

The voting system is called "mixed-member proportional," and is less complicated than it sounds. Everyone casts a "party vote," and an electorate (=district/constituency) vote. The party vote determines the overall party make-up of the parliament. Once the winners of the 65 electoral districts have been determined, parties are then enough list seats to get them up to their required number of seats. So, let's say a party wins 1/3 of the party votes, and 30 of the [geographic] electorate seats. They are entitled to 40 seats in parliament. Their next 10 members are then drawn from the remaining 55 seats that are distributed to make seats in parliament proportionate to votes across the whole country.

The two main parties are the Labour and National parties. The Labour party dates to 1916, and is one of the younger social democratic parties in the western world. It tends to support somewhat more generous social welfare programs, and government intervention in the economy, and more independent foreign policy. However, is is very supportive of free global trade, and Labour party treasurers have nearly always supported conservative fiscal policies. It governed from 1935-49, 57-60, 72-75, 84-90 and 1999 to the present.

The National Party dates to 1936, and is similar to the British Conservative party or the Australian liberal party. It has historically been identified with the urban wealthy and employers, and the rural farming communities as its core supporters, but has supported the welfare state enough to win lower and middle income votes. It first won office in 1949, and governed from 1949-1957, 1960-1972, 1975-1984, and 1990-1999.

Both parties are, compared to America, socially "liberal." Reflecting New Zealand's secular culture, there is a very small constituency for bringing religion into politics. Indeed, recent New Zealand prime ministers who have been church attenders have gone out of their way to stress that they would not let their religious beliefs influence their politics. Abortion has not been a topic of major political debate since the 1970s.

There are several smaller parties in parliament, the New Zealand First party, a populist party opposed to immigration from Asia, and supportive of more government intervention in the economy; a Green party, a small "Progressive" party, and the "United Future" party who are slightly conservative on social and cultural issues, but liberal on economic issues (in the sense of favoring less regulation and government spending).

Posted by robe0419 at July 21, 2005 01:42 PM | TrackBack
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