Parliament

Mike Moore
Former Prime Minister of New Zealand.
Former Director-General of the World Trade Organisation


Mid-week Politics

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NZCPR Mid-week Politics 
Mike Moore

28 May 2008
"Bunkham", Populism & Demagogic Politics

The word ‘Bunkam’ came into our political language from a North Carolina Representative who, when speaking in the US Congress, would say, “This is for Buncombe,” his home town, as a signal to colleagues not to take what he was saying seriously because his comments were for local consumption. 

Popularism, at its worst, is an extravagant appeal to base instincts, frequently seeking out groups or individuals who many are suspicious of, blaming them for the real and imagined ills of society. At its most extreme, it’s been; Jews, homosexuals, gypsies, Communists, unionists, capitalists, and migrants. The pattern is consistent and clear. It never lifts or unites, it does the opposite, it is structured to divide, it’s wedge politics. It often appeals to a mutant strand of socialism and economic nationalism. The European uber-nationalists of the 1930’s, and the populists who argue now for Russia First or Poland for the Poles, or Zimbabwe First. It was always about attacking outsiders, blaming others, creating demons and then saving ‘us’ from them. 

Democracy and the majority normally elbow out such tendencies, where electoral gains have been made, it’s mainly in European countries with proportional representation. Under MMP, it doesn’t matter if 90% oppose you, if you just seek to break the 5% threshold. Every three years there’s an attack on migrants, Asians, Muslims, or ultra wealthy capitalists. Just when this intolerant sore is healing, NZ First flicks at the scab, so it must be election year! The problems of hospitals are caused by migrants, housing problems are, according to them, caused by refugees. All great lies need a little truth to give them legs. Rob Muldoon once said, “Trade is NZ’s foreign policy,” but he also said, “I may not have always got it right, but I always got it on the front page.” 

One of the tragedies of NZ politics is how the real promise of Winston Peters, who had much to offer NZ, has been wasted. I’m compromised, I like the guy but this is no longer an answer.  Offshore, he’s charming and performs well, back home, it’s bunkam (Taurangi?). He knows better, that’s why he lashes out at critics, always claiming to be misreported. He attacks the Reserve Bank, but as Treasurer, kept its mandate, he sold the Auckland Airport without a covenant that the shares could not be on-sold. He opposed the China trade deal, as part of his coalition contract to become Foreign Minister. That means, no matter what the deal said, he was opposed, before it was ever concluded. A Foreign Minister should stand for his country’s vital interests and express our nation’s values at home and abroad.  Much of this is a function of MMP and coalition Government, anything goes. Whatever it takes.  In 1996, Helen Clark showed great integrity and refused to make Winston the Treasurer, Jim Bolger did and became Prime Minister. A lesson learnt.  Now neither main party dare criticise Winston because they may need him to form a Government. 

The main parties, being adults, have put New Zealand first by backing the China deal and rejecting a populist call to abolish GST on food. This would create costly compliance costs for businesses and create new loopholes. People need assistance but that is best done by tax cuts, family support and benefit increases.  What if Winston said he, as a condition of forming a new government, wants GST removed from food and local government rates, and a cut to fuel tax?  Wildly popular. It would be a sign of maturity and possibly save MMP if both serious parties said that this is not for negotiation, it’s off the table. Would they?

Meanwhile our productivity, the real test of wealth in the future, is flat-lining and our Stock Exchange is the worst-performing in the developed world.  But whenever mention is made of these issues, the scream goes out, ‘people not profits’. The China deal is damned because it’s about business. If business doesn’t make a profit, there are no jobs, no profits to tax for revenue. Notice how those who say this are the first to demand more money be spent everywhere. It simply won’t do for us to accept all this is just politics. There’s a difference between democracy and demagoguery.

Politics should be more noble than a checklist of fears and promises to targeted sectors, to be ticked off during an election cycle.

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