Showing posts with label private sector. Show all posts
Showing posts with label private sector. Show all posts

Tuesday, October 16, 2012

(Opinion) EU 2012 Nobel Peace Prize: A Prize Deserved?


                                                            

There are many things you can say about Nobel peace prize and its awarding committee, among them would be that they sure know how to pick their winners. From awarding the peace prize to Henry Kissinger despite his well-documented involvement at the tail end of the Vietnam War to Barack Obama winning the award in the midst of two protracted wars, the noble peace prize has a history of awarding public figures with a lot of blood on their hands.

However one of its strangest awards to date was giving the Nobel Peace Prize to the European Union. While it’s not unusual for political organisations to win the prize such as Amnesty International and the UN, it is quite strange that a political project has won in what is probably its most trying period.

Recent years may have tested the EU as political and economic project, but what is not up for debate is the EU is the most successful political project in the history of international politics. For centuries Europe had been rife with “divisions, tensions and conflicts” borne out of competition and imperial ambition[1].

These two factors made sure Europe would remain a Hobbesian nightmare halfway through the 20th century as the continent experienced two world wars and several failed attempts at diplomacy in-between, notably with the League of Nations. However, Influenced by the brutality and death that characterised the Second World War, leaders across Europe realised the need for a united Europe ensuring that war will never break out in Europe ever again.

The fact that the peace has held in Europe for so long after centuries of conflict and competition owes much to the process of integration between the economies of EU member states and laws strengthening human rights legislation. The success of the EU has been that it has meant greater cooperation between nations in Europe, particularly the big three, Britain, France and Germany, key players in both world wars. In recent years the EU has expanded eastward with the accession of former soviet states to full membership.

However, the process of integration and cooperation mediated by the EU has led to developments that have been met with less than other endeavours. The establishment of the single currency was seen by some as the most ambitious development in uniting Europe even further and seen as a major threat to national sovereignty by others.

The Euro was seen by supporters as the most audacious statement of intent by EU member states to unify Europe by tying their fates together by establishing the European Monetary Union (EMU). While the language of the EMU was economic, it was motivated purely by politics as the EMU remarkably took  many of the controls traditionally handled by member states and put them in the hands of technocrats in Brussels. This was accomplished through the rather strict monetary requirements aspiring EMU members had to meet to join the single currency[2].

While the idea of uniting Europe in the interest of peace and prosperity has been a success, the undemocratic nature of the political project has been the source of bickering among member states and the economic stagnation of many members of the EMU, Greece being the most prominent example

The EU’s response to the Eurozone crisis has been poor to say the least as the troika of the EU, IMF and ECB has forced upon Greece’s strict austerity measures and heavily conditioned bailouts in an attempt to keep Greece in the EMU despite default being a painful but viable option. The fact that the EU has partnered with the IMF leads to questions of it lack of accountability due to the IMF’s use of notorious structural adjustment programs recommended to countries of the global south.    

These polices that  have caused instability in many nations in the global south have now been imposed on Greece and has led to frequent, often violent protest by ordinary Greek citizens against strict austerity measures used by its government and the EU itself. 

The search for consensus by EU leaders from EU member states has led to creation of the fiscal pact, which will impose tough fiscal measures to make sure its members keep financially sound budgets, mostly through measures that have failed miserably in Greece.On this evidence it is quite strange that the Nobel peace prize has been awarded to the EU this year as its polices have caused instability in Greece and it ideological preference for an united Europe has weakened significantly it member states ability to react to economic and political crisis

In conclusion, the EU is the most successful political project in the history of international politics and should be recognised for playing a large role in why there has been no war in Europe from Second World War onwards. However, to award the EU the Nobel Peace Prize when its policies have caused instability in Greece and threatened the future of the Eurozone is bizarre to say the least


  
  


[1] N. Nugent, 2006, The Government and Politics of the European Union, Hampshire, Palgrave Macmillan
[2] S. G. McGiffen, 2001, The European Union: A Critical Guide, London, Pluto Press (p.60)

Thursday, August 30, 2012

(video) Rick Santorum RNC speech: Can You Really Shake Hands With The American Dream?

The Young Turks share their take on a string of strange hand metaphors during Rick Santorum's speech at the Republican National Convention.

Tuesday, August 14, 2012

Monday, August 13, 2012

(Opinion) G4S Security: When you Can’t Catch A Break in a snooker hall




Every once in a while a company goes through a difficult period and is confronted with headline after headline detailing it weaknesses and past screw ups but G4S is a company that couldn’t buy a break in a snooker hall.  However, it is more than fair to say that it has earned critical media scrutiny as reports detailed G4S lax attitude to recruitment and general incompetence before, during, and after the Olympics.

The main reason why G4S failure is big news is not because of the extent of how much G4S was unprepared for the games, but it has been a major loss for the coalition government plan to outsource parts of the public sector, especially the police. The Labour Party was quick to attack in light of G4S lack of preparation with Labour leader Ed Miliband linking the company’s failures to the coalition government plans for the public sector[1]. Miliband cited the pace of outsourcing of the police and the need   “for a rethink of the role of the private sector in policing”[2].

This could prove to be an effective strategy for labour as the coalition government (the conservatives in particular) have made enemies out of the police, traditionally a natural ally of the Tories due to their tough stance on crime.

The Tories have done their best to alienate the police with a regime of spending and pay cuts to the point where Home Secretary Theresa May was subject to “heckling and jeering” when she spoke at the Police Federation Conference earlier this year[3]. Greeted with absolute silence the year before, the home secretary and her government were subject to criticism from all angles as the police federation chairman Paul McKeever revealed warning the home secretary of ‘public disorder’ and illustrated his point  with images of police officers under duress during the  student protests in late 2010[4].

The financial implications of G4S Olympics failure have been severe as the company ”has seen more than 400 million wiped of its market value since the debacle”[5]. Standard and poor’s has indicated that it may cut down G4S credit rating in light of the company’s major ‘underperformance’[6]. However the fiasco has not affected the ability of the company to win contracts as G4S has managed to seal a deal worth “72 million” to secure the British embassy in Kabul[7] .

While G4S may be able to secure deals abroad, it can forget any government contracts, especially roles belonging to the police as plans that were once approved by three regional police authorities that outsourced job roles to G4S are now ”under review”[8] . The main point of concern by ‘chief constables’ was that G4S was not capable of the “effective and efficient delivery of organisational support services”[9].

In sum, G4S found itself on the world stage and dropped the ball for all to see, however this will have little effect on its existing work abroad but it can forget winning any contracts from the government due to the major retreat from outsourcing by several police authorities. This could be a real fillip for the Labour Party as the conservative continue to alienate the police force, giving some room for Labour to win back law and order voters they lost in 2010.








[1] A. Topping, 2012,  G4S Olympic Scandal: Ed Miliband calls for rethink of police outsourcing,  http://www.guardian.co.uk/politics/2012/jul/19/g4s-olympic-ed-miliband-police?newsfeed=true
[2] Ibid, Quoted by Topping
[3] A. Travis, 2012, Theresa May heckled and jeered during police conference speech, http://www.guardian.co.uk/uk/2012/may/16/theresa-may-heckled-police-conference
[4] A. Travis, 2011 police greet Theresa may speech with complete silence, http://www.guardian.co.uk/uk/2011/may/18/police-greet-theresa-may-speech-silence?INTCMP=ILCNETTXT3487
[5] F. Attewill, 2012, Police Taken Off To Cover G4S Olympic Staff Shortfall, http://www.metro.co.uk/olympics/905360-police-taken-off-beat-to-cover-g4s-olympic-staff-shortfall
[7] Morning Star, 2012, G4S extends Kabul contract for £72 m,  http://www.morningstaronline.co.uk/news/content/view/full/122589
[8] BBC News, 2012, G4S police outsource plans ‘concern chief constables,
[9] Ibid, quoted by BBC News

Sunday, July 15, 2012

(Video) Krugman on Newsnight

The Nobel Prize winning economist argues his case on newsnight


(Opinion) government inefficiencies bad, Private sector inefficiencies wors




While there have been many failures to lie at the door of government, its failures are nothing compared to the failures of the private sector. For the last 30 year or so, we have been subject to a very successful campaign extolling the vices of government citing horror stories of government waste, failed policies and personal tragedy while at the same time deifying the marketplace.

However the arguments that would have ended pretty quickly any debate on the reform of the marketplace have fallen by the wayside as they have been disproved in the most dramatic fashion. The last five years have confirmed just about every argument made for reform or even the abolishment of the marketplace as the never ending drive for growth has led to the collapse and concentration of banks in a bid to survive the biggest crisis since the great depression.

We have been exposed to the folly and the outright deception of respected financial institutions as they risked their reputations to increase profits and ended up causing market failure on a grand scale. The recent LIBOR scandal involving Barclays is another example of what happens when profit motive is the only motive involved in the market sector, as banks actively shirk their responsibilities to their clients and customers in the pursuit to make money.

While the government cannot escape a large portion of blame for economic difficulties of the five years as it has failed in its task of regulating the activities of Banks as even  regulatory bodies have been subject to widespread logic that dictates that in order for markets to flourish, government intervention must be minimal or avoided altogether.

This logic, despite all the events in the last five years that have damaged its credibility beyond repair, still holds strong among those endowed with the power to craft a new financial regime based on sustainable polices as the world has just found out just how finite the possibilities of the marketplace really are.
This can explain why most of the regulatory reforms are mostly weak and allow banks to use the same practices that caused the collapse in the first place. Regulating the financial system is going even more difficult as banks, due to government forced mergers, have become an even bigger liability than before as if there should be another market failure, the ‘too big to fail’ arguments for government intervention will be untenable.

In sum, the arguments against government agency in the marketplace were part of an effort to glorify the market in the interest of those who sought to benefit from a weak government which has now collapsed under the weight of events of the last five years. Regulating the financial marketplace will be even more difficult as banks have become even more concentrated due to forced mergers. Government official must make reforming the financial system a top priority as due to the banks being concentrated, the taxpayers maybe be able never mind willing to fit the bill.



LinkWithin

Related Posts Plugin for WordPress, Blogger...