Camel greeting

Showing posts with label Wall St. Show all posts
Showing posts with label Wall St. Show all posts

Thursday, 2 January 2014

The Nepalese Don’t Understand Capitalism

Surfing through the TV channels on a laid-back New Year’s Day I chanced upon a tennis match involving my favourite Spanish left-handed World No 1. It seems one of the tournaments warming players up for the Australian Open Grand Slam in Melbourne this month is being held in Doha, capital city of that well-known tennis-playing nation, Qatar.

Spot the tennis-players. ExxonMobil tournament in Qatar
Excuse me if a little cynicism crept into that last sentence. You can’t really blame the players, I know, because after all, tennis is their job, and there’s $US 1,096,910 in prize money up for grabs in that Doha tournament. Still, I felt some admiration for Roger Federer, who is apparently doing his warm-up in Brisbane, Australia.

You are perhaps aware that the hereditary absolute monarchy of Qatar is also scheduled to host the FIFA World Cup in 2022, but has been attracting some unwelcome media attention for alleged mistreatment of labourers working on the associated huge construction projects. The tiny Arab state is, according to Wikipedia, ‘the world's richest country [by per capita GDP] and achieved the highest human development in the Arab World and 36th highest globally . . . and also the 19th most peaceful country in the world’.  Qatar has a population of 1,903,447 of which, sadly for male Qataris, only 498,283 (or 26 percent) are female. In fact, however, only 15 percent of those nearly two million residents are actually citizens – the vast majority being expatriate male labourers from India, Nepal, the Philippines, Bangladesh and other nations not ranked quite so high on lists of per capita wealth and/or peacefulness.

One assumes, then, given the high level of peace in Qatar, that Qatari males have better odds of finding a girl than the overall statistic might lead us to think. Similarly, since wages for migrant workers, according to Human Rights Watch, ‘typically range from $8 to $11 for between nine and eleven hours of gruelling outdoor work each day’, one must further assume that per capita income stats and measurements of human development only reflect the situation of actual Qatari nationals.

The Guardian ran an article on 29 December pointing out the shocking fact that, in spite of ‘brutal working conditions and flagrant abuse of workers' rights’, thousands of impoverished Nepalese men queue up each day for the chance to work in Qatar and other Gulf states. Their hope is that they will earn $200 a month for a couple of years, pay back the fee charged by employment agencies back home, and perhaps start a small business or send their children to school on their return.

Protest against treatment of
migrant workers in Gulf States
Living conditions in Nepal are so bad that stories of over-crowded accommodation, starvation rations and non-payment of wages are not sufficient to shorten those queues. The Wikipedia entry mentions Nepal in the same sentence as Rwanda and Bangladesh, stating that nearly 60 percent of the people live on less than $2 a day, with unemployment and underemployment approaching half of the working-age population. More than one third of households do not have a toilet in their house, and less than half have running tap water. ‘Leading diseases and illnesses include diarrhea, gastrointestinal disorders, goiter, intestinal parasites, leprosy, visceral leishmaniasis and tuberculosis.’ Malnutrition is a serious problem: ‘about 47 percent of children under five are stunted, 15 percent wasted, and 36 percent underweight.’ Another Guardian article in June this year described the death of a 12-year-old girl in Kathmandu. The girl, working as a domestic slave for a higher-caste family to repay a debt incurred by her father, had apparently ‘doused herself in kerosene and then set herself alight.’ Such slavery, the article continues, is not at all uncommon.

It’s a sad story, but what can you do? Time ran an article in their Business and Money section last week entitled: ‘How a Starbucks Latté Shows China Doesn’t Understand Capitalism’. The gist was that Chinese are unreasonably complaining because Starbucks charges more for a coffee in Taiyuan than it does in downtown Manhattan – with similar charges made against Nestlé and Danone. The writer says, in essence, that the Chinese should shut up. The answer, as usual, comes down to ‘the bottom line’, which is: Companies will price their products based on what the consumer is willing to pay’ – and if you don’t like the price, don’t buy the product. Big talk, but in this case I suspect capitalism may find its bottom line rationale clashing with its need to tap into the one-and-a-half billion Chinese consumer market.

Nevertheless, that headline did raise another question in my mind: Who actually does understand capitalism? Getting back to that tennis tournament in Doha, the major sponsor is the American multinational oil and gas corporation ExxonMobil – not surprising, I guess, since little old Qatar has the world’s third largest natural gas reserves, as well as a good supply of petroleum. According to Wikipedia, ExxonMobil’s largest shareholder is that paragon of international philanthrocapitalism, the Bill and Melinda Gates Foundation. Two members of the current board are a professor of economics at Stanford University and another of management practice at Harvard Business School. Well, that trio at least should have a pretty good grasp of how capitalism works. Certainly their baby looks in rude financial health. As of July 1, 2010, ExxonMobil occupied eight out of 10 slots for Largest Corporate Quarterly Earnings of All Time. Furthermore, it occupies 5 out of 10 slots on Largest Corporate Annual Earnings’.

On the other hand, you yourself may not be as well versed in the philosophy that drives the world economy as the Gates couple and those disinterested academics, so let me give you a couple of pointers. The ExxonMobil bottom line, not surprisingly, does not attach great importance to the environmental health of Planet Earth. That Wikipedia entry lists six major oil spills within continental United States for which the corporation was responsible and whose seriousness they tried to downplay: apart from the Exxon Valdez disaster of March 1989, more recently there have been oil spills in Brooklyn and the Yellowstone River in July 2007, a pipeline spill and benzene leak at Baton Rouge Refinery in April and June 2012 and another oil spill at Mayflower in March 2013. ExxonMobil have been accused of funding organisations disseminating misinformation about the part fossil fuels play in causing global warming. Even the people at Forbes, not generally known for caring about the downtrodden masses, have raised questions of company executives bribing and/or taking kickbacks from the dictatorial regimes of oil-rich nations such as Angola and Kazakhstan.

You might think that, if only out of cynical self-interest, the board of ExxonMobil might want to throw a few of those All Time Highest Quarterly Earnings in the direction of Nepal and its enslaved girl children. Even Rafael Nadal, if he knew what was going on, might be persuaded to donate a portion of his winner’s purse. But clearly the sponsors of tennis and the football World Cup are happy to have their company names and logos broadcast to television sets around the world and accept at face value the Qatari royal family’s hype about the wealth and standard of living of their people. Whatever spin its most ardent proponents try to put on it, capitalism is largely about short-term profit; and concern for future generations, or disadvantaged present-day ones is not a major factor in bottom line accounting.

Another example is the financial sector, in particular, the denizens of Wall St who were credited with causing the global crisis of 2008. In February 2009 President Barack Obama appointed Former Federal Reserve Chairman Paul Volcker to chair a board tasked with advising the administration on matters affecting economic recovery. In January 2010 the board came back with a set of proposals aimed at preventing banks from engaging in the kind of dodgy trading and investing that had led to the financial meltdown. Those proposals, popularly known as the Volcker Rule, and officially as the Dodd-Frank Wall St Reform and Consumer Protection Act (!!!), have been doing the rounds of various ‘agencies’ for the past four years, and are now scheduled to go into effect on 1 April 2014 (any significance in that date, I wonder?).

Clearly those ‘agencies’ have had plenty of time to play with the proposals. According to an article in Time’s Business pages, the original relatively simple recommendations have been tampered with and expanded to such an extent that ‘The Volcker rule . . . has been turned into Swiss cheese by bank lobbyists’ – on whom their employers spend nearly half a billion dollars a year. The article goes on to say that ‘the biggest banks are even bigger now than they were before the crisis: the eight largest financial institutions in the U.S. control nearly $15 trillion worth of assets, or about 90% of GDP’.

It seems to me one of the big differences between post-modern economies and those in the developing world is the sophistication level of their corruption; the capacity for burying their dirty activities in a legal labyrinth, or exporting them offshore. In between, of course, are the oil-rich newcomers, who just snow the soiled underwear with money and defy the world to criticise.

Take Dubai. I resent it intensely when my plane stops there on the way to Auckland or Sydney. If I want to go there, I’ll buy a ticket – which I will never willingly do. This year I’m going via Malaysia – not lily-white, for sure, but less objectionable than its Middle Eastern Muslim cousin.

The population of that desert oasis is similar to Qatar, with more or less the same ratio of males to females, for pretty much the same reason – more than 70 percent are poor migrant workers from Asia. Sharan Burrow, general secretary of the International Trade Union Confederation says, ‘Most companies are forcing their workers to live in squalor. An unconscionable number of workers die due to unsafe conditions.’ Workers are ‘effectively living in 21st century slave states,’ she says. According to Al-Jazeera, unions and strikes are illegal. Annual per capita income of citizens in the United Arab Emirates is $48,158, but only 20 percent of the 7.9 million residents have citizenship – almost impossible to get if you can’t prove a paternal blood relationship to the original inhabitants. Women’s rights are reportedly beyond medieval. In Dubai, a woman who reports being raped can be sentenced to over a year of time in prison for ‘engaging in extramarital relations.’

On the other hand, thousands of Western ex-pats, including tennis and rugby players, choose to live, work and play in the UAE, lured by high salaries and a lifestyle they could not afford in their own countries. Apparently adjudicators from the Guinness Book of Records were on hand in Dubai on New Year’s Eve to officially witness the world’s largest ever fireworks extravaganza. The six-minute display is said to have exploded half a million fireworks spread over nearly 100 kilometres of coastline, provided employment for 200 technicians (from US firm Fireworks by Grucci) using 100 computers, and cost $6 million.

In the end, perhaps that’s the real secret of capitalism’s success: blind the ‘haves’ with lavish displays of pyrotechnics, and keep the self-immolating Nepalese slave-girls well out of sight.

Saturday, 23 February 2013

Redefining Democracy – and getting the monkey off Turkey’s back


I’ve spent several years trying to define and or describe Turkey and its people on this blog – and now I feel I’m ready to tackle one of the world’s really big questions. What is this ‘democracy’ thing that people keep talking about?

William J Clinton to the contrary, it was the USA's 16th President Abraham Lincoln, in his Gettysburg Address of 1863, who asserted that 750,000 of his citizens would die in the Civil War 'that government of the people, by the people for the people shall not perish from the earth.' Well, he didn’t know the exact figure at that stage, of course, but he must have known it would be a lot. He was, we assume, expressing his support for a democratic system of government, despite the fact that the vast bulk of the US population in those days was not eligible to cast a vote.

Lambs to the slaughter - so what's changed?
The word 'democracy' has a long history, yet as a concept, it has only relatively recently become widely accepted as a desirable goal, and among political leaders, tends to be more honoured in the breach than the observance. Encyclopedia entries and tourist brochures describing the modern nation of Greece often refer to that land as the cradle of democracy. In truth, however, the much vaunted Athenian system of Cleisthenes lasted a mere two hundred years, more than two and a half millennia ago - and at best allowed for the participation of perhaps twenty percent of the population.

Subsequently, there was not even self-government in that small corner of the Mediterranean until the 19th century when the Great Powers of Europe wrested it from the Ottoman Empire. Even then, self-government is a misleading term, given that said Great Powers installed, first a German, then a Danish Prince on the throne of the kingdom they had created. The foreign-imposed monarchy lasted, on and off, until 1967 when it was finally deposed by a military coup, whose generals ruled the country with an iron fist until 1974. So it seems democracy as a political system has an uncertain, questionable pedigree at best.

Still, it's a worthy aim, for all that. However, you can understand that some might view it with cynicism. Check any collection of quotations on the subject: The best argument against democracy is a five-minute conversation with the average voter.(Winston Churchill);The difference between a democracy and a dictatorship is that in a democracy you vote first and take orders later; in a dictatorship you don't have to waste your time voting.’ (Charles Bukowski).

Apart from the cynics, much of the other wisdom has to do with the fragility of the concept when put into practice, and its vulnerability to abuse and manipulation: ‘Democracy cannot succeed unless those who express their choice are prepared to choose wisely. The real safeguard of democracy, therefore, is education. (Franklin D. Roosevelt);A healthy democracy requires a decent society; it requires that we are honorable, generous, tolerant and respectful.’ (Charles W. Pickering).   Education of the masses is seen as an indispensable component, as is constant vigilance, by which we may understand, an effective system of checks and balances – not to mention a need for honest folks in high places, and probably compulsory polygraph testing for lying and hypocrisy, especially in the case of high court judges.

The big problem is that in any country or institution, the ruling elite is always understandably reluctant to surrender its grasp on power. As they are forced to give up concessions to populist reformers - abolition of slavery, universal suffrage (especially for the non-wealthy, and for women), an open press, the secret ballot, objective supervision of vote-counting and so on - they are obliged to find more subtle ways of ensuring that votes cast do not unduly hamper their pursuit of riches and power.

One such method is the sophisticated, expensive and lucrative system of political lobbying. According to Wikipedia: ‘Wall Street lobbyists and the financial industry spent upwards of $100 million in one year to "court regulators and lawmakers", particularly since they were "finalizing new regulations for lending, trading and debit card fees." . . . Big banks were "prolific spenders" on lobbying; JPMorgan Chase has an in-house team of lobbyists who spent $3.3 million in 2010; the American Bankers Association spent $4.6 million on lobbying; an organization representing 100 of the nation's largest financial firms called the Financial Services Roundtable spent heavily as well. A trade group representing Hedge Funds spent more than $1 million in one quarter trying to influence the government about financial regulations, including an effort to try to change a rule that might demand greater disclosure requirements for funds.’ Given this level of expenditure, what would you say are the chances of persuading Congress that Wall St needs a little more regulating?

Another method of circumventing the democratic process is the creation of 'flexible' labour markets - which essentially means the removal of manufacturing and service industries from countries with high labour costs (read 'a reasonable standard of living for all') to poor countries where workers can be exploited for wretchedly low wages and conditions. A useful side benefit of this 'flexibility' is a level of ‘structural’ unemployment in the original country such that those who do have jobs can be frightened into accepting lower pay and reduced conditions.

Parallel to this ‘flexible labour market’ runs the establishment of a senior management elite with the power to remunerate themselves beyond King Croesus’s wildest dreams for their achievements in reducing costs and maximizing profits for their companies. Since most of their work force is either employed for slave-labour wages in distant third world lands, or too frightened and de-unionised to complain, and the unemployed, on the whole, don't have a voice, we don't hear a lot of criticism. There have, admittedly, been protests in France over the salary package of Renault-Nissan CEO Carlos Ghosn, though even the French government couldn't convince him it was excessive. Reuters reported recently that, Ghosn earned 2.79 million euros from Renault in 2011 and 9.92 million from Nissan in its corresponding financial year, making him one of the highest-paid CEOs in France or Japan.’ In the same article, it was noted that, ‘Renault is cutting 7,500 jobs over three years . . . and is demanding union concessions on pay, flexibility and working hours in return for guarantees to keep French plants open.’ Interestingly, my Turkish daily reported the other day that Mr Ghosn had agreed to a 30% cut in salary if workers in Turkey’s Renault plant accepted the company’s new contract. Nice to see the developing world fighting back! Still, it must be comforting to know that you can take a 30% cut and still make 9.6 million euros for a year’s work, if work is what the gentleman in question actually does.

It seems, for the most part, that corporate CEOs can pretty much do what they like, especially those in the financial sector, who don’t have to worry about uppity union representatives from the factory floor. Nevertheless, you can't be absolutely sure some bleeding heart President isn't going to get nervous about the effect all this is having on the morale of the nation as a whole, and start trying to change things. Lobbying alone may not be sufficient. Political campaign funding is a tried and tested means of buying the support of the people’s elected representatives. A recent phenomenon, or at least one that has recently been brought to light, is known as “dark money”[1]. What we have here is wealthy individuals hiding behind seemingly public-spirited organizations donating large sums to politicians' election campaigns.  Huffington Post gives some examples: The Karl Rove-founded Crossroads GPS, the Koch brothers' Americans for Prosperity, Grover Norquist's Americans for Tax Reform, the shadowy American Future Fund, and the U.S. Chamber of Commerce have spent $295 million since the beginning of 2011, targeting candidates from President Barack Obama on down to the most contested House and Senate races, all without disclosing the names of their donors to the public.

‘These groups are organized as either social welfare nonprofits under section 501(c)(4) of the tax code or, in the case of the Chamber of Commerce, as a trade association under section 501(c)(6). Since these groups qualify for tax-exempt status, they are also exempt from disclosing their donors, which political committees are required to do.

‘In total, these "dark money" groups have combined to spend $416 million on the 2012 election.’

Once you have these systems in place, you can pretty much guarantee that things will go the way of big business. On the other hand, there remains the problem of investigative news media that may probe and embarrass your tame politicians. It's not a major problem, since your big business probably owns most of the media anyway - but still you may get the occasional maverick. What you really need to do is ensure that your system is so deeply entrenched and unresponsive to uncontrolled influence and change that most of the citizens who might want reform have been effectively disenfranchised. A post-election article in Time Magazine noted that large numbers of reporters slaved throughout the presidential campaign to ferret out lies and contradictions perpetrated by candidates:

‘Clear examples of deception fill websites, appear on nightly newscasts and run on the front pages of newspapers. But the truth squads have had only marginal success in changing the behavior of the campaigns and almost no impact on the outside groups that peddle unvarnished falsehoods with even less accountability. “We’re not going to let our campaign be dictated by fact checkers,” explained Neil Newhouse, Romney’s pollster, echoing his industry’s conventional wisdom.’ Clearly both political party machines are happy to play fast and loose with the truth, secure in the knowledge that the system is stacked against accountability.

In consequence, voter turnout in US Presidential elections seems to reflect a lack of belief in the electoral system. It is estimated that 57.5% of eligible voters turned out at the polls in 2012. Mitt Romney was ridiculed and lambasted for stating that 47% of voters would vote for Obama no matter what, so he didn't have to worry about them. In fact, 43% of US voters, approximately 93 million citizens, have been so effectively cut out of the democratic process that neither party needs to think about them.

Which brings me to my next point in the sorry tale of exemplary democracy. Does anyone really understand how representatives are sent to the US Congress and Senate, and how a President is elected? And if they do, can they explain to what extent the results actually reflect the wishes of US voters? The current system for electing a US President was designed by the founding fathers at the birth of the Republic, allegedly to guard against potential evils, one of which was the dominance of party politics. In fact, the same two parties have been taking turns to screw the country for the past 160 years, the 'Democrats' since 1832, and the Republicans since 1854. Interestingly, at the time of Abraham Lincoln's Civil War, the Democrats were actually the pro-slavery party - another bend sinister on the ancestral escutcheon of democracy.

Former First Lady Hillary Clinton is said to have told the European Parliament in 2009, 'I never understood multi-party democracy. It's hard enough with two parties.' If Madame Clinton actually did utter those words, and if they truly reflect her opinion, you'd have to wonder whether she has the mental equipment to cast a responsible vote, never mind carry out the duties of Secretary of State or, God forbid, President of the most powerful nation on Earth! For Mrs Clinton's information, the majority of the world's democratic states employ a proportional representation electoral system which allows for the presence in their legislative assemblies of several political parties - and most of those countries have a higher turnout at the polls than the USA. Not surprising when you remember that the media were telling us prior to the 2012 election that, if you didn't live in Florida, Pennsylvania, Michigan, North Carolina, Virginia, Wisconsin, Colorado, Iowa, Ohio, Nevada or New Hampshire, you might as well stay home for all the difference your vote would make to the final result.

One of the things that have impressed me about Turkey in recent years is the capacity for change within the system. When I first came to this country in 1995, the AK Party currently in power did not exist. Now, none of the parties involved in government at that time can manage a single representative in parliament. Very likely, Mrs Clinton would struggle in such an environment. She wouldn't know which lobbyists to listen to, or which unaffiliated public interest group to accept campaign funds from - or even which party to join. The Turkish system may be tough on politicians, financiers and retired army generals, but it does keep Turkish voters interested. And I suspect a good number of those 93 million non-voting Americans would make more effort if there were a little more choice on their voting papers.

Undoubtedly there are social and economic problems in Turkey. The education system is desperately in need of serious expert attention, for instance, and the gulf between rich and poor is unacceptably high. On the other hand, the nation has so far avoided the worst effects of the world financial crisis that has battered its European neighbours Greece, Italy, Spain, Portugal, Ireland and even the UK. The home of modern democracy seems to have silenced its discontented poor for the time being, but tens of thousands have been taking to the streets regularly in the PIIGS nations in recent months to protest their governments’ imposed ‘austerity’ measures.

‘Austerity’, needless to say, is generally understood to mean reducing pensions and social welfare benefits for the retired and unemployed, cutting back the public sector workforce, and reducing spending on education and public health. Little in the way of belt-tightening is required from the banking and finance sectors – Irish banks, for example, have reportedly received 64 billion euros in government handouts to keep them solvent. Furthermore, those government handouts are funded from tax paid by the diminishing pool of wage and salary earners, or more likely, given their indebtedness, by government borrowing from banks. In the mean time, the UK parliament has published a report announcing plans to try and collect billions of pounds in tax from US multinational corporations such as Starbucks, Google and Amazon, who use a technique referred to as ‘profit-shifting’ to pretty much avoid paying any tax at all. The New York Times reported the other day that, Starbucks said . . . that it was reviewing its British tax practices after the company disclosed recently that it had paid no corporate tax in Britain last year despite generating £398 million in sales.’ Unfortunately, the article goes on to say, the British Government expects that their campaign to extract a little internal revenue from these sources will cost them at least £77 million.

Still, the British taxpayer has got it soft compared to his or her American counterpart. According to a recent article in Time, the Pentagon is splashing out $400 billion dollars to purchase 2,457 Lockheed F-35 fighters that are apparently starting to show many of the attributes of a white elephant. At approximately $160 million each, the single-seat warplane costs about the same as a 204-seater Boeing 767. I don’t remember seeing that voters were offered the opportunity to say yay or nay to this project in last year’s national presidential poll – but I suspect not. The same article quotes a Republican senator saying that US spending on ‘defense’ now accounts for 45% of the world’s total.

Well, so much for the power of a democratically exercised vote, and the fair spread of the tax burden over those able to pay. What about equality before the law, another foundation stone of a democratic system? A recent study carried out in New Zealand by an academic at Victoria University found that white-collar fraudsters are far less likely to spend time in jail than denizens of society’s lower echelons hauled into court for welfare benefit cheating – in spite of the fact that the sums of money involved are invariably much larger in the former group.

Like me, you may be following the case of Jesse Jackson Jr, former Chicago Democrat congressman once talked about as having the potential to become the first black president’, who has admitted charges of channelling campaign funds to his personal use. Apparently Jesse Jr delegated the responsibility for the family tax forms to his wife Sandi, a Chicago City Councillor – who is also facing charges for filing false returns. Let’s see what happens to them, bearing in mind that a blue-collar employee who steals from his or her employer is usually treated harshly by the justice system. And then there is Dominique Strauss-Kahn, former IMF chief with plans to run for President of France. His stellar career was derailed when a hotel maid accused him of sexual assault. Stauss-Kahn’s lawyers were able to discredit the woman and avoid criminal prosecution, but she subsequently brought a civil case against him. The latest news is that the case has been settled out of court for an undisclosed, but presumably large sum. Well, you’d have to wonder why the guy would want to do that if he was, in fact, innocent. You can’t help feeling that Big Abe’s famous words could be modified these days to: Government of the people by a small and privileged elite largely for the benefit of that latter group. Monsieur Dominique, incidentally, would have been standing as a Socialist candidate!

Anyway, where does all that leave us? I’m sure you knew or suspected most of the foregoing, even if you may not have known all the fine details. I fondly remember the days when my own name was on the ballot paper in New Zealand, which made casting a vote in national elections so much easier. These days it seems I don’t qualify to exercise democratic voting rights in New Zealand or Turkey, so for the most part, I just sit on the sidelines and offer helpful comments. Still, I do feel that the Western media should assist in getting their own national houses in order before criticising too harshly democracy in Turkey and elsewhere.



[1] coined by the Sunlight Foundation

Tuesday, 19 June 2012

Who’s Going to Rule the World? Fethullah Gülen?

For much of my longish life I have been hearing tales, historical, contemporary and fictional, about the latest megalomaniac individual or evil empire determined to rule the world. Traditionally the contenders have based their claims on the possession of some kind of superior weapons technology – but times have changed. We are well into the post-modern era, and most predictions of earlier ages about what the world would be like in the year 1984 or 2000 seem naïve and laughable to us now. It is pretty clear that the task of ruling the world has moved way beyond the power of one individual (if that was ever a realistic possibility). The vast military resources of the one remaining global super-power have proved insufficient to rebuild even minor third world states in the US’s own image. So now we have nothing to worry about, right? We can get on with the job of lighting up our own small corners with iPhone 4s and Galaxy SIIIs without fear of global annihilation.

Uh-uh, sorry folks. I’ve got bad news. There’s a new battle shaping up, and it’s about the enemies within.

One reason I enjoy living in Turkey is that I don’t feel so much like crying when I read the local news. Back in New Zealand, before heading to work, I used to listen to a morning roundup on the radio of what ‘they’ were doing to my beautiful country. I confess, there was a time back then when the idea of joining some revolutionary band of bomb-throwing anarchists began to have some appeal. Now, however, from a distance of some 17,000 kilometres, I find I can read news of events in the Land of the Long White Cloud with more objectivity, and the tears don’t flow as once they did.

Let me give you an example of the madness, though, from my own field of professional interest. The National (read Tory) Government in New Zealand, in its 2012 budget, announced its intention to save $43 million by putting the lid on teacher recruitment. The inevitable result of this, of course, would be a steady increase in class sizes in schools around the country. Luckily, the government has a select band of tame ‘education experts’ who can be called upon to explain why this won’t be a bad thing. One of these, a Professor John Hattie, has apparently conducted research showing that class sizes are not a major factor in student learning. As far as I can learn, Professor Hattie’s research has not involved any actual time spent teaching actual kids in actual classrooms – he has been an ivory tower academic since 1975. Not sure I would take my car to be repaired by an ‘automotive expert’ with no hands-on experience, regardless of how many years he’d been studying the theory, but that’s just me.

Well, there are experts and consultants, it seems, and you can count on these guys to back each other up. One of the latter, a Dr John Langley, was quoted as saying, "If I had a choice of putting my child into a class with a poor teacher with twenty kids or into a class of thirty kids with a good teacher I'd go for the latter. It's as simple as that." Reassuring to know the government has access to people with such incisive problem-solving ability, and New Zealand taxpayers can feel satisfied that Dr John well deserves his no doubt generous consultancy fee.

These days New Zealand has a system of proportional system for electing representatives to its legislative assembly. The system was instituted in 1996 in response to overwhelming public dissatisfaction with the old first-past-the-post, two-party system such as exists in the UK and the US. Unfortunately post-modernism has insinuated its way in here too. The several small parties that manage to win the occasional seat in the legislature are run mostly by fringe lunatic refugees from the far right or left of the two main parties. The main role of these minor participants seems to be putting forward outrageous proposals which the government can proceed to implement in slightly modified form after the initial public anger has died down.

One of the more fanatical of these minor political groupings is a coterie of doctrinaire libertarians known by the acronym ACT, arguing with religious fervour for deregulation, privatisation, flexible labour markets and reduced taxes for the wealthy. And one of the more significant achievements of these neo-liberal economic geniuses has been the move to privatisation of the prison system. A recent editorial in the New Zealand Herald observed that, ‘Something is clearly awry when a Government proclaims the economic benefits of a new prison’.  Nevertheless, Auckland’s oldest prison has already been outsourced to private management, and a newly built facility soon will be. The group to which the NZ Government is entrusting the care and security of its criminals is a multi-national outfit name of Serco – which a Guardian journalist has described as ‘. . . probably the biggest company you’ve never heard of.’  OK, come on, you may say. Leave aside your left-wing socialist prejudices and tell us how they are doing. Well, a recent report on the first eight months of Serco's management produced the following findings:


‘ . . .  as well as two prisoners being wrongfully released, the British firm had failed to meet 40% of its performance targets and was fined $150,000 after a prisoner escaped.
Targets for random drug testing and prisoner management plans were also not reached.
Annually, Serco can earn up to approximately $3 million in incentive payments, but instead it is having to pay for under-performing.
On top of the $150,000 fine it got after prisoner A. F. escaped, it was fined $25,000 for accidently releasing an inmate early and $50,000 for failing to file progress reports.
Another $25,000 fine is pending for releasing another prisoner early.’

In spite of these criticisms, the government is standing by its decision. Corrections Minister Anne Tolley said ‘ . . . there needs to be some improvement, but she also described it as a "bedding in" period for Serco’.

Well, once you have accepted handing over prisons to the private sector you have pretty much overcome, or chosen to ignore, all the arguments that can be mustered against privatization. So it is hardly surprising to see the free-marketeers turning their attention to schools and teachers. Unfortunately, private sector education has been around for a long time, and has often been associated with elitism, poor teaching, violence, and dubious educational standards. But even supposing they do find a good establishment, the wealthy resent having to fork out high tuition fees in addition to paying taxes, some of which are used to finance state-sector schools. So, our privateers have come up with a system which allows organisations to receive government funding for a school, while at the same time getting a special deal allowing them to avoid much of the normal regulation and overseeing. It’s called the Charter School system.

However, again unfortunately, there seem to be glitches in the system. In 2009, the Center for Research on Education Outcomes (CREDO) at Stanford University in the US, produced a report stating that ‘17% of charter schools reported academic gains that were significantly better than traditional public schools; 46% showed no difference from public schools; and 37% were significantly worse than their traditional public school counterparts’.

Fethullah Gülen
Now, if you have read this far, you may be wondering what all this has to do with my topic, which, you will remember, was ‘Who’s going to rule the world?’ But I assure you, I hadn’t forgotten. I want to redirect your attention to those figures in the CREDO report, and in particular, the 17% of charter schools [reporting] academic gains that were significantly better than traditional public schools. A Turkish colleague of mine recently sent me the link to a ‘60 Minutes’ documentary looking into the connection between some very successful charter schools in Texas, and a certain reclusive expatriate Turkish citizen by the name of Fethullah Gülen.

I watched the documentary with interest, because I have been hearing this gentleman’s name in Turkey for some years, generally spoken in tones of fear and loathing that suggest some kind of hybrid monster cloned from the DNA of L Ron Hubbard, Sun Myung Moon, Attila the Hun and the Ayatollah Khomeini. I was hoping for some conclusive evidence of evil-doing, since I was assured that Americans were now seeing Fethullah Hodja in his true colours. The programme, then, I have to say, turned out to be something of a let-down. The presenter, a long-serving correspondent for CBS with a big reputation as an investigative tele-journalist, visited schools supposedly associated with the Gülen ‘movement’, and tracked the elderly Hodja to his secluded residence in the Poconos, a mountainous region in north-eastern Pennsylvania.


She and her camera crew spoke to school administrators and students. As far as I could see, they learned that:
  • The school administrators are normal-looking, secular and articulate.
  • The students are bright-eyed, bushy-tailed kids who love their school.
  • The schools are among the most highly rated in the country in terms of academic success.
  • There is a waiting list for entry exceeding the total capacity of the schools.
  • There is no religious education taking place, and certainly no observable Islamic character.
  • Curriculum focus is on mathematics and science.


They were unable to interview the Hodja himself since, apparently, he has been ill for some months and rarely appears in public. His representative assured the interviewer that he takes no direct interest in the running of the schools. The most sinister information emerging from the programme was the presenter’s comment that some people in Turkey believe Gülen and his ‘movement’ have a ‘secret agenda’ though the details weren’t made clear – one assumes that’s because otherwise it wouldn’t be secret.

Undoubtedly the activities of the ‘Gülen movement’ are beginning to arouse interest beyond the shores of the Hodja’s native Turkey – however there seems to be some debate about the nature of these activities.

My Apple Desktop Dictionary defines a movement as: ‘a group of people working together to advance their shared political, social, or artistic ideas: the labor movement’, or the cubist movement.
Merriam-Webster Online suggests: ‘a series of organized activities working toward an objective; also: an organized effort to promote or attain an end, eg the civil rights movement’.

Two questions seem to arise here: Does a ‘movement’ require a leader in the sense of a person who takes responsibility for organizing and coordinating its activities? And, is a ‘movement’ good or bad, according to the definition?

Addressing the first question, it seems to me that the key factor in a movement is a concept or philosophy, rather than a ‘leader’ in the normal sense of the word – a concept such as: that labour needs to organize to counteract the power of employers; that human beings deserve equal rights before the law regardless of race; the use of ‘multiple perspective and complex planar faceting for expressive effect’ in a work of art. Participants latch on to an idea formulated by an initiator or trend-setter and the movement takes on a life of its own which may be quite independent of that person. Subsequently leaders may emerge but again, the movement continues or dies out more or less regardless of the existence or activities of those persons. Think of Martin Luther King or Pablo Picasso. As for the second question, in general, movements tend to be, to a greater or lesser extent, revolutionary, in the sense that they are usually a reaction to the prevailing status quo, and their appeal is that they offer some kind of new approach to what is perceived to be an existing problem. I guess they will ultimately be judged according to which side of the fence the judge is sitting on – or alternatively, by their results. ‘Ye shall know them by their fruits’ (Luke: 6, 43) has always seemed to me a good criterion to use in evaluating any group or individual.

So let’s get back to the Gülen Movement. First of all there is an official website. You won’t find the ‘hidden agenda’ of course, because that would, of necessity, be hidden. But you will find a very fascinating and comprehensive source of information about the man, his beliefs and goals. According to the brief bio, he ‘is an authoritative mainstream Turkish Muslim scholar, thinker, author, poet, opinion leader and educational activist who supports interfaith and intercultural dialogue, science, democracy and spirituality and opposes violence and turning religion into a political ideology. Fethullah Gülen promotes cooperation of civilizations toward a peaceful world, as opposed to a clash’. On this website you will find poetry and articles about education, the rights of women, the link between virtue and happiness . . . and other interesting topics too numerous to mention. You will find that Gülen cites as a source of his inspiration the 13th century Sufi mystic Mevlana Jalal al-Din Rumi, renowned for his inclusive philosophy of love and peace. 

Wikipedia will tell you, not surprisingly, that the Gülen Movement is inspired by the teachings of Fethullah Hodja. A key concept is the Turkish word Hizmet, meaning service, which connotes using your talents for the common good without looking for personal reward. On the other hand, Gülen does not discourage followers from making money through business – merely encourages them to use some of their energies to help the less fortunate. 

A recent Time magazine article  wrote about a meeting with members of the Gülen Movement in the eastern Turkish city of Diyarbakır. In an economically disadvantaged region of the country with a large Kurdish population, local businessmen have been raising money for the foundation of elementary schools and public reading rooms. While the article does say that many Turks view the Gulen Movement with suspicion’, on the face of it, you’d have to think that the fruits of its efforts seem quite positive, even laudable.

According to another website called Gülen Inspired Schools’,  there are over a thousand such schools around the world, including 130 in the United States. Independent audits suggest that these schools produce excellent academic results, ranking them among the most successful in their respective countries. Interestingly, administrators deny any control by the Hodja, or a central body associated with him, unlike, say, Catholic Church-run schools. Investigators have found no evidence of religious teaching, Islamic or otherwise. On the contrary, Gülen has been quoted as saying, "Studying physics, mathematics, and chemistry is worshipping God," and the common thread running through the schools seems to be a curriculum focusing on these modern subjects.

Sounds ok, on the whole, what do you think? Still, I have to confess I found one or two negatives in my searchings. An article in the New York Times in 2006  reported that some of those Texas schools had been allegedly giving construction contracts and making other favourable deals with firms ‘connected to’ the Gülen movement. More seriously, Mr Gülen himself was apparently put on trial in 1999 for ‘attempting to overthrow the government.’ Still, when you consider that the present Prime Minister of Turkey served prison time in those days for a similar offence, you’d have to think that the legal criteria must have been somewhat more stringent than we would expect in the US or New Zealand. In his younger days, the Hodja also apparently fell foul of the military authorities after the 1971 coup in Turkey, being arrested, tried and convicted. Not surprising, then, that he chooses to reside in the USA – although Turkish courts did clear him of all wrong-doing in 2008.

Anyway, ladies and gentlemen, I thank you for your patience in reading so far. I’m not here to be an apologist for Fethullah Gülen or any political or religious ideology. I merely want to outline the philosophies and fruits of two movements, and ask you to consider who you would prefer to see ruling the world.

God or Mammon?
On the one hand, let me present bottom-line accounting, out-of-control free-market capitalism, as championed by Wall Street bankers, multi-national corporations and the so-called mainstream media. Key elements of this ideology are: privatisation of state-owned enterprises, belt-tightening (especially for the middle and lower socio-economic classes), welfare cutbacks, labour-market flexibility and outsourcing of manufacturing to countries with lower wage costs. MBA management courses churn out white-colour clones who can manage any enterprise, without needing to know anything about the activity of the industry they are managing. Governments are hijacked by corporate and financial interests with no personal morality or patriotism whatsoever, whose only belief is in the power of money to buy whatever they want, and a philosophy, if you can call it that, based on a firm sense of personal entitlement to rape the planet of its resources and exploit its people wherever they may be. Reduced taxes for the wealthy are an important tool in economic management. Why should the tax-payer pay for schools, hospitals, post offices, railways, electricity supply, relief for the the unemployed and disadvantaged? The tax-payer's money is needed to bail out the banks when they have finished milking ma and pa small investors, superannuation funds, poor borrowers – and there’s no one else in the capitalist system to defraud.

On the other hand, let’s postulate a group of people with a personal morality based on religious beliefs, and a philosophy founded on a concept of altruistic service to the community. A group of people who operate without the need for a centralised bureaucratic structure, their operations inspired by a teacher with a vision of a better world and directed by their own confidence in the truth of his message. A group of people who, in spite of their lofty ideals, do not divorce themselves from the real world, but rather work within it, using their knowledge, skills and resources to provide educational opportunities and support to young people in their communities.

In the end, I guess, life choices are never so simple. I don’t imagine you will get the opportunity to cast a vote directly for one or the other. But I like the sound of this:

Along the winding road to The Truth
A hero, all selfishness banished,
The key to the mystery of creation in his heart,
Weaves his way through time to reach his goal.

Moving ever upwards he breathes the air of eternity;
He has met with Khidr: he knows the way.
And to fellow wayfarers he gives the good news of dawn;
A message of hope in a night of choking darkness.

In his hands burns a torch; he spreads light everywhere
And he brightens the Way for all who would follow;
His ascent radiates peace and serenity;
His amber fragrance permeates every atom of creation.

Wherever he treads finds life and becomes green:
The hills and valleys, plains and mountains are all dressed in color:
And on every breeze is borne the perfume of spring;
Blossoms appear, flowers burst into life, trees are quickened.

His mind nurtured ever by eternity,
And everlasting melody flows from his lips:
All he sees is the richly colored tapestry of life to come,
The belief in which is part of his every being.