01 March 2012

Air NZ Airpoints greatly devalued UPDATED

Whilst I usually write about global or NZ politics and bigger issues, this one is more personal to me, and is relevant to all those who fly Air NZ frequently, especially on either long haul trips or premium fares.  

If you've never flown long haul in business class, you shouldn't read this, as you wont understand how much of a hell hole economy class is in comparison.

Air NZ has decided to abolish airpoints upgrades.  In other words, from the end of May 2012, you will no longer be able to request an upgrade using airpoints for a fixed value.  To me, this was one of the greatest benefits of sticking to the programme, even though I live in the UK.

Loyalty programmes are seen across the retail world today, but the first common incarnation of them was with frequent flyer programmes.  They came about as airlines saw an advantage in giving their customers something back if they flew regularly, particularly as the most regular customers tended to be business travellers on more expensive fares. 

The easiest way to do this at the time was to give points or miles according to how far someone flew.  A trip from Auckland to London would provide much more "benefit" to the traveller than a trip from Auckland to Whakatane.   Given that travel in premium cabins generates far more revenue than in economy, especially discount economy, airlines would provide additional points for travel in the front, but may half or even quarter the return from travel in the cheapest seats.

The return for the airline was loyalty, because the frequent traveller could use the points to buy free flights for oneself and family, or to upgrade on leisure trips.  The value being that the high value fares would remain with that airline because those "perks" were worth it.  It has become commonplace for business travellers to pick airlines as much because of loyalty programmes as with standards of service or price (up to a point).

Air NZ saw a flaw in this from its point of view a few years ago in that miles (or km) flown did not reflect revenue it gained from travellers.  A cheap fare to London would earn much more in miles than a person paying the same for a few full fare domestic flights, so it shifted to Airpoints dollars.  This meant Airpoints Dollars earned reflected amounts that more closely related to fares spent in each class for different trips.   From the customer's point of view, it meant Airpoints dollars could be treated as currency and used to buy a ticket with the points as if they were money. 

Another layer was built on top of this by setting up status grades.  For Air NZ it meant that beyond a certain threshold of points earning in a year you could get Silver, Gold or Gold Elite status.  They represented rising layers of priority for service, but most importantly Gold and Gold Elite offered the ability to use Business Class check in and luggage allowance, regardless of class of travel, and access to all Business Class/Koru lounges regardless of class of travel, for ALL Star Alliance airlines (barring the odd exception).  In short, it meant that if you travelled enough especially in premium cabins, you could be treated as a Business Class customer at the airport no matter what class you book in - a major benefit.  In addition, you got priority when booking flights and requesting upgrades.

Upgrades have varied importance in difference airline markets.  Airlines obviously want people to pay to travel in premium economy and business class, because they would go out of business if people always upgraded.  However, the value of allowing upgrades for unsold seats was that it secured strong loyalty.  

Whilst some airlines, notably in the US, offer upgrades quite freely to their customers based on status (and as a result don't have particularly good premium cabins), Air NZ has never as a rule automatically upgraded customers as a right (occasionally it happens for operational reasons).  To get an upgrade on Airpoints you had to request it spending Airpoints dollars or use one of the two maximum "recognition" upgrade vouchers provided to customers with status.  The Airpoints dollars could either be spent on a standby upgrade (which would mean that it would not be confirmed until and unless it was clear the seats wouldn't be sold) or a confirmed upgrade (costing much more and requiring the traveller to not be in a discount fare category).  

Those with the highest status had the highest chance for an upgrade, which was understandable as these were people who spent the most on the airline, or its partners (which credited it with revenue) so were the ones who are the most HVCs (High Value Customers).  Those with plain old Jade status would only get an upgrade if there were seats remaining after Gold Elite, Gold and Silver travellers had had their upgrade requests allocated.  However, if you didn't spent Airpoints Dollars or a voucher on an upgrade, you wouldn't get one (unless circumstances were exceptional).

For a frequent traveller, the ability to spend Airpoints dollars on upgrades on Air NZ long haul flights was highly valued.  It meant that if given the choice between flying economy class on Singapore Airlines or Air NZ, Air NZ would win because there was a chance of spending Airpoints dollars to request an upgrade, whilst earning more Airpoints dollars than if one flew on Singapore Airlines.   Same in comparing Air NZ with Qantas in premium economy (and soon Cathay and Malaysian both of which will offer premium economy).

It meant that frequent long haul travellers in business class could avoid the hell of flying long haul economy if they had status and points to burn, and it kept those travellers loyal to Air NZ on those long haul business class flights.  It also meant premium economy gained a lot more value than it had before, as a "tolerable" compromise class which was worthwhile if there was a chance of upgrading to business from it. 

Air NZ in recent years has tweaked the programme to effectively seriously cut the ability of those paying discount fares to gain status points and Airpoints Dollars in any great volume.  Around 15% of Airpoints members have status, meaning most of those who are members don't fly much.  Those who do fly much (and I have had Gold Elite, Gold or Silver status continuously with Air NZ for 16 years now - currently Gold), the programme has some value.

So what has been announced in the last 24 hours has virtually destroyed that.

Airpoints upgrades are being abolished, in favour of an auction scheme for upgrades.  Instead of simply requesting an upgrade for a fixed value of Airpoints dollars, a traveller will have to make a bid using Airpoints dollars or cash.  It means that frequent flyers with status may be trounced by infrequent flyers with money.  It means that instead of paying for a ticket and simply requesting an upgrade, you have to think about participating in an auction for an upgrade.   

Frankly, I'd rather just request my upgrade and if I get it, lose a fixed sum, if not, just stay put than have all the fun of an auction.

It's simple Air NZ (and as a state owned carrier I can give a damn), the people who request airpoints upgrades are high value customers whose loyalty you ought to want to keep because they generate much of your revenue.   You've now told them that their loyalty, reflected in airpoints dollars, is actually worth precious little because they are being treated like everyone else.  

So loyalty will float off to Qantas/BA/Cathay in OneWorld or Emirates.

The commercial decision to do this appears transparent - airpoints upgrades were clearly too cheap, even though the means to earn airpoints had dropped dramatically.  The airline wants more airpoints burned, but in doing so it has meant that those who earn the most, don't get any recognition for their status.  It also wants money from people bidding on upgrades, but then it would have got that anyway from those people without the airpoints dollars to do it.

The alternatives are clear:
-  Refocus earning airpoints dollars as simply being a percentage of the price of the ticket.  This will mean those who pay the most earn the greatest redemption, providing a modest incentive to pay more.
-  Tighten up the process for assessing standby upgrades to reflect fares paid as well as status.  This also means loyalty is rewarded and it also provides an incentive to pay more.
-   Restrict airpoints upgrades to those with status only.  That also incentivises status and means people will strive for status to get preferential access to upgrades.

However, no.  Air NZ has decided to devalue something that many high value customers regard as worthwhile.

Rumour has it that Qantas sees this as a magic opportunity to offer Gold and Platinum status matches for Air NZ Golds and Gold Elites willing to make the switch.  Given Qantas and Jetstar can rival Air NZ on the Tasman, on most routes to Asia and Europe and the main trunk domestic routes, this could be costly for the airline.

It has the comfort of monopolies on most of its routes, but on the routes I use the most, it has plenty of competition (London-LA, London-Hong Kong-Auckland), including airlines now introducing premium economy.

If you're an airpoints member, then you ought to notice you've just lost some value from your account. If you're not, and you wonder why I'm worked up about it, then just consider me eccentric and a travel snob - because I am.

UPDATED:  Since I wrote this, two things have changed.  First, Air NZ has since announced that it is RETAINING Airpoints Upgrades of fixed value for its Gold Elites.  However, it appears that they will only be confirmed on checkin, when previously they could be confirmed up to one-year in advance.  It appears they will come AFTER OneUp upgrade bids, which means Gold Elites don't exactly get priority, but rather the crumbs.

Secondly, Air NZ's communications to its status Airpoints members have indicated that their OneUp upgrade bids will actually be higher value than those without status.  Silver Airpoints members will have a "premium value" layered on top of their bids, but it is unclear what this means (1%, 10%?).  Gold Airpoints members will have a premium value of "three times that of Silver", but again what does that mean?  Gold Elite is more again.

My chief concern about all of this is the lack of transparency.  I have never minded throwing in an airpoints upgrade request and taking my chances, knowing full well that my chances depend, in part, on my status.  Gold Elite's first, Golds second, Silvers third, everyone else below that.  However, to engage in an auction, where anyone can bid, with cash, not knowing what status means, just cheapens the experience.

I am happy for Air NZ to introduce OneUp upgrades.  Sure, feel free to flog off upgrades to anyone, if you have any left after those with status.  However, give your status Airpoints holders first preference.   Make the leap from economy to business premier much more expensive in Airpoints dollars terms than it is now (because that doesn't reflect the fare difference), but make sure status holders feel valued.

29 February 2012

The man's search for a tyrannical fatherland never ends

You see, George Galloway is a sycophant for the Assad regime when he visits it, then denies it when he returns.  Ask yourself why the so-called peace movement of the left is rather quiet about Syria, and seek out whether the real reason is because it prefers the fact that Assad's regime has never been Western backed, always been anti-Israeli, was allied to Saddam Hussein, provides succour for Hezbollah and Hamas, occupied Lebanon without a peep of protest from the "peace" movement and has a Russian military base just to prove how anti-Western it is:





 Christopher Hitchens tells it like it is as he also calls it the "so-called anti-war movement".
  

23 February 2012

The deafening silence of the "peace" movement on Syria

Russia arms the Syrian government, as it has done so for 11 years (and for decades before that as the USSR) and so is profiting from the current war being waged by the Assad Ba'athist dictatorship against Syrians who oppose him.

You'd think that the so-called "peace" movement would be protesting.  That Russian embassies worldwide would face pickets, that Russian flags would be burned, led by the Westerners who did just that against US embassies and flags when the US intervened in Iraq.  

Syrians are doing so, but the "peace" activists are strangely uninspired.  Why?

A visit to the "Stop the War Coalition" (STWC) website says it all.  A big focus on backing Iran, that great harbinger of non-intervention, as if a state murdering citizens is less important.  It does have an article about Syria where it opposes Western intervention, but neglects to mention Russian intervention.  Why?  Well STWC doesn't like the West very much.  It would have preferred Muammar Gaddafi massacring Libyans from the air than NATO stopping that and assisting his overthrow.  Why?  What interests did he serve?  Wasn't he waging war against his people, like he did quietly for decades by suppressing dissent?  What is really telling is the STWC goes on about Western sales of arms to the Saudi and Bahrain dictatorships, but is silent about Russia and Iran's intervention in Syria.  You see Russia, Iran and Syrian dictatorships are ok, or at least better than Saudi and Bahrain, and indeed far better than the US, France and the UK intervening.   Its wilful blindness to what Russia and Iran does in Syria, like its wilful blindness to what Syria did in Lebanon, speaks volumes.   STWC is not anti-war, it is anti-Western, anti-liberal democracy, anti-secularism, anti-freedom and anti-capitalist.  It is a Marxist front organisation that provides succour for tyrannies, as long as they aren't Western backed.

Stop the War Coalition is actually "stop the war against those waging war against their own citizens".  Hardly surprising, given its chairman is a friend of the Orwellian cult of dead personality regime in Pyongyang.

Greenpeace?  Silent. 

Iran has sent naval ships to Syria.  Russia continues to sell arms to the Syrian dictatorship.

The arguments against Western military intervention remain compelling, and are primarily about being bogged down in a conflict where no side is an angel and there is an overwhelming risk of civil war being a sectarian battle.   Yet there is a case for blocking Russian and Iranian ships from entering Syrian waters and imposing a no-fly zone.  That, at least, will minimise malignant intervention on the side of Assad.

However, the so-called "peace movement" will likely oppose that, because to them peace within countries, particularly regimes that are not Western friendly and not the result of Western intervention, isn't that important.  It's just another leftwing group that opposes the West that gives them the freedom and wealth to function.

There are no solutions to Syria coming from the "peace" movement or the left.  The conservative right has been burned by Iraq and Afghanistan and has neither the fortitude nor the capacity to support a similar intervention in Syria.   The only way Syria will get better is if Syrians will fight for freedom, if more Syrian soldiers fight against Assad than for him and if Syrian embrace values of secularism, freedom, mutual respect and tolerance for each other.   The best way that can be encouraged is by hindering malignant intervention and by good people being mercenaries and supporting factions in Syria that allow people to defend themselves and fight for a free Syria.

Neither the "peace movement", nor the UN, nor the Arab League can be expected to support let alone do much for any of that.

22 February 2012

Greece for dummies. Austerity = living within your means

So, once again, the taxpayers of prudent Eurozone countries are going to mortgage their future income and savings because the taxpayers of an imprudent lying Eurozone country are unwilling to pay for the bureaucracy and socialised services and welfare state they voted for.

The latest 130 billion Euro is 406 Euro for every resident of all of the other Eurozone countries, unless you want to remove the others in trouble (Ireland, Portugal, Spain and Italy) in which case it becomes 660 Euro. 

I've written before about the chain of events that led up to it, but here is a summary:

1. Greece joined the European Economic Community in 1981.  It proceeded to receive considerable sums of money from it through structural funds from European taxpayers to pay for new infrastructure, as well as gaining subsidies from the Common Agricultural Policy.

2. The Greek government ran continuous budget deficits since then, although for much of the time it had the drachma and so inflated/devalued its way out of trouble.  Greek politicians would buy off groups of voters by increasing the size of state employment, increasing pensions, funding specific projects and essentially running a patronage state.  By the mid 90's public debt as a proportion of GDP was greater than 90%.

3. In 2001 it finally dropped the drachma in favour of the Euro, having gained Euro membership after lying about its fiscal position.  It did this by hiding the true size of expenditure on defence and healthcare, this was not discovered until 2010.  For nine years Greek governments had paid Goldman Sachs to cover up its systematic fraud towards financial institutions.

4. Since 2001, Greece was able to borrow at very low interest rates reflecting the low inflation and relatively buoyancy of the wealthier Eurozone countries.  Year by year public debt would rise as Greek politicians continued their behaviour of bribing voters with borrowed money.  This growing state of subsidies saw little reform or restructuring as Greeks could import more freely with the higher valued Euro, but found it more difficult to export as productivity hardly improved.

5. The 2008 global financial crisis, catalysed by sub-prime mortgage lending mostly in the US, but also parts of Europ.  Greece was hit by a downturn in tourism and shipping.   This exacerbated shortfalls in tax revenue, which were in part due to systematic tax evasion over many years.   Similarly, Greece was experiencing reductions in funding from the European Commission as cohesion funds were transferred to the poorer new Member States from the former Warsaw Pact.

6. In 2010 the fraud of the Greek government was revealed, with budget deficits 2.5 times what was being reported.  Increasingly, it became more and more difficult for the Greek government to rollover its debt and to borrow to cover its persistent overspending.

7.  In February 2010, the Greek government gained a special loan of 80 billion Euro from the International Monetary Fund and European Central Bank conditional on an austerity package that froze state sector salaries, froze state sector employment growth and cut expenses.

8. In March 2010, the Greek government agreed to cut public sector bonuses, a 7% cut in public sector salaries, increased VAT and fuel tax and taxes on new cars.  The intention was to reduce the budget deficit by 4.8 billion Euro.  This was the second attempt to

9.  In April 2010 it was clear this wasn't enough, so the Greek government asked the IMF and EU to bail it out as was unable to rollover existing debts due in late May 2010.   In May it was decided to implement further austerity measures including further cuts to public sector bonuses and public sector pensions, increases in the retirement age from 61 to 65 and a wide range of tax increases, as well as consolidation of local authorities to reduce administration costs.  110 Billion Euro in loans were agreed as part of this deal with the IMF and other Eurozone countries.

10. In 2011, it was clear the deficit cutting targets were not going to met, so further austerity measures were introduced.  Higher income taxes and VAT were introduced, along with a promise to privatise 50 billion Euros worth of state assets.  Yet in August it was revealed that spending was continuing to increase overall, while tax revenue continued to decline.  In October, the EU promised Greece another 100 billion Euro loan conditional on it meeting austerity targets.  The Greek Prime Minister sought a referendum on the deal, causing panic among lenders fearing default.  He resigned and was replaced with a technocrat (former Governor of the Bank of Greece Lucas Papademos) to negotiate a package before elections in April 2012.

11. The latest deal has been struck, including a cut in state sector employment of 150,000 by 2015, cuts in state pensions, cuts in defence and health spending, liberalising various sectors of the economy by abolishing statutory monopolies, and 15 billion Euro of privatisation by 2015 (the 50 billion had not been achieved.

In the deal just agreed, lenders are expected to write off 53.5% of the debt they loaned.  The Occupy activists might pause for thought that this represents a massive transfer from the financial institutions they hate to Greek public servants, recipients of public services and welfare recipients.  In one swoop, market signals (i.e. a debtor unable to pay) effectively saw market players take the risk and give up on recovering their money from a feckless borrower.   

However, it wont be enough.  I've said before that Greece ought to default.  Why?  Because it will finally confront banks and other lenders with the reality of lending to governments that they cannot rely on the taxpayers of other countries to rescue them.  They quite rightly should stop seeing sovereign debt as 100% safe.   It is only as safe as governments are able to force money out of the hands of their citizens and/or devalue the currency by printing it.  In Greece, the government can do neither.  The problem is that default would likely mean Greece exiting the Eurozone.

So if Greece was actually allowed to default, several things would occur.

1.  The Greek government would be unable to borrow, forcing it to cull its bloated state back out of sheer necessity.  It would have to amend its absurd constitution that prohibit making state workers redundant.  In other words, reality would be confronted full on.

2.  The Eurozone would face choices.  One is to keep Greece in, and face a significant depreciation of the Euro and increase in interest rates for all of its members (this is what the current pillaging of taxpayers in Germany is designed to avoid), another is to eject Greece meaning it may create its own near worthless fiat currency ("New Drachma") and a third would be for the Eurozone to split into two currencies.  One for the poorer economies another for the richer, effectively doing away with the purpose of the Eurozone in the first place.

3.  Greek people would vote in governments that would force them to make stark choices, such as remaining within the Eurozone or leaving.

Yet default is probably incompatible with remaining in the Euro, and I don't believe leaving the Euro will make Greece better off.  The choice is about more austerity or default.   There are no easy answers.

You see the path taken by Greek government has been, as I said before, a massive exercise in reality evasion.

Greek politicians who were in government since the 1980s and especially since 2001, are fraudsters on a grand scale.  By rights, they should be have been lynched by Greek citizens for they have destroyed the country's economy.   They took the country into the Eurozone through lies and they continued to lie for nearly a decade about the true nature of the country's finances.   Accomplices with them are Greek state officials and Goldman Sachs.  By rights there should be several of them getting prosecuted for fraud and face having their assets stripped to the bone, and to go to prison.

Even today, Greek politicians and state servants are resisting and proving next to useless to implement austerity measures. Almost no privatisations have been carried out and the unemployment in Greece is entirely from the private sector.  State sector employment has not shrunk, it simply has not grown.   They are inept to the point where it is hardly surprising so many Greeks don't bother paying taxes.   They would see it as being wasted.

However, politicians are not the only ones to blame.  The Eurozone countries, European Central Bank and European Commission were negligent in enforcing the Euro deficit rules and completely neglected to punish France or Germany for breaching them.  They all at least deserve to face some culpability in not being scrupulous about the accounts.  Eurostat did not act in response to queries from Goldman Sachs about its derivative swaps by looking after the interests of an EU Member State.  If the European Commission is expected to be a guardian of the Eurozone today, why wasn't it so when it could have flagged an issue some years ago.

Greek voters are also complicit in this reality evasion.  Many of them, particular state servants, have happily gone along with ever increasing salaries, benefits, pensions and "bonuses" extracted from future taxpayers.  Greece's public debt and deficits were no secret, just the size of the deficits were.   Greek voters would vote for the corrupt politicians who would sustain a system of patronage socialism that has bankrupted the country.  Yet whilst some took from the state, most refused to pay it.  Many Greek citizens opted out of paying taxes because they didn't think it was worth it and it was easy to evade.  How long they thought this would last is unknown, but it is fair to say few Greek voters really thought twice about stopping the gravy train.

Finally, lenders who expected the Greek government to pay up and indeed other Eurozone countries' taxpayers to do so whilst they treated Greek sovereign debt as "safe".  Lending money to governments has long been seen as "safe", yet it is only so as long as two things happen.  Firstly, the government can forcibly extract money from taxpayers to pay you back with interest.  Secondly, the government doesn't devalue your loan by printing more money.  Greece has been unable to do the first and can't do the second.  As I said above, those lenders are rightfully taking a slightly over 50% cut in their debts.  It should be more.

Margaret Thatcher said "the problem with socialism is that eventually you run out of other people's money".

That's what has happened.  The Greek government has always been spending more than it collected from its own people, so has been borrowing other people's money to cover the difference.  Now it has all come to an end.

Greece has tried decades of socialism, with a highly regulated and protected economy, financed by lenders and more recently taxpayers' from other countries, and it has failed.  

The latest bailout will fail too, because it is only starting to confront the regulatory environment that strangles the Greek economy.   The austerity measures are half about increasing taxes, which is strangling the economy as well.  Greek governments have done little to really cut spending, but done much to increase taxes.   Socialism is still the way in Greece and the EU is still embracing such an approach, negligent to the costs that higher taxes are imposing on the productive - perhaps because bureaucrats don't accept that it is the private sector that grows economies.

I do not share the view that Greece should opt out of the Euro, because all that would do is destroy the savings and contracts of the smallest businesses and least well off in the country.  Everyone else would transfer their bank accounts to foreign banks and transfer contracts to other jurisdictions.  Shifting from one flawed fiat currency to another is an easy way out that will only benefit exporters, but will decimate the average person.  

What needs to happen is clear, and it needs to be presented to Greek voters in the upcoming election.   There is a choice:

Reject socialism:  Austerity should be about cutting spending.  No more tax increases, indeed Greece needs serious tax reform to simplify taxes and lower them to levels where people will be more willing to pay.  Taxes need to be competitive with Bulgaria, its only bordering EU Member State.   Privatisation should be carried out of all enterprises that can easily face competition, others should be privatised by issuing shares.  The economy needs restructuring, with statutory monopolies and complicated licensing arrangements abolished.  It should be made far easier to set up businesses, for contracts to be agreed and enforced, for property to be transferred.  In short, Greece needs its entire business, employment, taxation and property regulatory environment gutted and reformed, as what happened in the former Warsaw Pact countries.  This requires acceptance that the welfare state as it stands is unaffordable, that health and education will be at least in part user pays and that retirement incomes are to be self funded.  It also means rooting out corruption tooth and nail, which will be much easier without subsidies and favours to be granted through officials and politicians.  There is less to be corrupt about if there is a free market and a small government that focuses on its core functions.

The alternative is bleaker.

Embrace devaluation:  Greece would default and seek to leave the Euro.  The Greek banking system would collapse as Greeks would use Euros and other currencies in foreign bank accounts for savings and transactions, and the drachma becomes the currency primarily for state workers.  The effect of this is a massive pay cut in the public sector and for contractors to the government.  The government would face embracing an inflationary printing of money to pay for its persistent deficit, resulting in further devaluation and the fleeing of skilled people and entrepreneurs, as property prices skyrocket in response to inflation and devaluation.  Exporters find themselves competitive purely on price, but it becomes increasingly difficult to obtain foreign exchange to import energy and capital goods.  Ultimately, Greece faces up to finding socialism unaffordable, but after several years of pain.

I fear the latter will happen.  Already Greek banks have seen a 25% reduction in deposits in the past year as businesses and savers forecast this scenario.

What else could happen is of course far worse.  Greece does have traditions of communist and fascist parties keen to extract themselves from the EU and the Euro and become isolated.  

Let's hope Greek voters are not tempted by that, and may actually look to their ancient past as a nation of people who embraced reason, science and reality.   They have a lot of pride.  That pride has been hurt by some in the Eurozone accusing Greeks of being lazy.  That's unfair.  Some are, some are not, as in any nation.   Greeks in response have unfortunately used Nazi slogans and symbols to depict the German government.  That is grossly vile, insensitive and unfair, especially since German taxpayers have been bankrolling the past two years.  Yet running a country from Brussels will result in such analogies being applied.  Eurozone countries cannot completely neglect democratic mandates.

The greatest pride for Greece will be to live within its means and to rebuild an economy devastated by pessimism, higher taxes and socialist economic policies.  The only way that can be done is by agreeing to a future without such state dependency for money, services or regulatory privilege.

It need only look north to the most recent EU Member States, such as Romania, which in 1989 opened up their devastated, ruined economies, people, societies, industries and environment to an outside world willing to help.   Romania then was far far worse off than Greece today, had to scrap virtually its whole industrial sector, most of its entire public sector, its law and even its culture and start again, the hard way.   Half of Europe needed rescuing, rebuilding and re-educating in how to function in the 1990s, and most have succeeded, all those that did implemented free market reforms.

The solution is capitalism.  It isn't devoid in Greek people as can be seen in the 7 million of so Greeks who live, work, own businesses and succeed in other countries.   Now if only that spirit, culture and attitude could be applied to their home country by their countryfolk, Greece would once again be a country they can all be proud of.

18 February 2012

Militant secularism? Much of the world could do with it

Baroness Warsi is a Conservative peer, a Minister and co-Chairman (yes!) of the Conservative Party.  She is a failed Parliamentary candidate and undoubtedly was selected to be a peer because of David Cameron's desire to make the Conservative Party look more inclusive and diverse, even though voters didn't want her to represent them.  So, in the peculiarly British tradition of shouting loudly about democracy, but ignoring it when one wants to promote people to power based on who they are not whether they have a mandate, she is in the House of Lords, as a Minister without portfolio, because she is a female British born Muslim of Pakistani descent.  Without a doubt her religion helped her gain power.   However, that isn't the current issue (Labour, after all, promoted Peter Mandelson to be a senior Cabinet Minister after he had lost his parliamentary seat.  All of the parties happily use peers to grant jobs for cronies that the public don't give mandates to).

She has recently visited the Vatican representing the Government, which itself is remarkable.  However, the big controversy is that she gave a speech, published as an article by the Daily Telegraph, expressing concern about "a militant secularisation" of society.  By that, of course, she means assertive atheism.  This comes from a background of a number of events, the most recent being a court case that prohibits local authorities from starting their council meetings with a prayer.  Others include cases involving private companies setting rules around wearing religious icons etc.

So what did Baroness Warsi say?

She says "we stand side by side with the Pope in fighting for faith".  Really? Who is this "we"?  Is it the Government?  In which case, to hell with the lot of you (so to speak).  The Liberal Democrats should pull out of the coalition immediately and there ought to be a few Conservative MPs who didn't realise they were fighting for religion, not for their constituents.  Is this "we" the Conservative Party?  Who does she think she represents?

What she is calling for is at best inappropriate.  The state should not be "fighting for faith", it should be neutral.  Religious belief is like political and philosophical belief.  It is personal, people use it to inform their own behaviour and to provide some comfort and fulfillment emotionally, particularly when dealing with difficult issues of life around grief, relationships, tragedy and events outside their control.  

She claims that "to create a more just society, people need to feel stronger in their religious identities and more confident in their creeds. In practice this means individuals not diluting their faiths and nations not denying their religious heritages.   This begs so many questions, as to what she means by a "just society"?  What evidence is there that if people "feel stronger" in their religious identities that this will result in things being more just?  Every country where Islam has the state fighting for it, literally by assaulting, torturing and executing those who reject it, there is not "justice".  There are countless examples of Christians, Jews, Buddhists, Shintoists and others who "felt strong" in their religious identities and confident, who didn't "dilute their faith", but were fundamentalists, and happily spilt rivers of blood in the name of their religious faith.  

History is awash with people who took their religious identity and killed for it.  The UK itself has much recent blood spilt in this regard, with Northern Ireland crawling slowly out from the pernicious weight of Catholic/Protestant fundamentalism, "strong identities" that saw adults bullying children as they walk to school, if they weren't blowing people up or shooting them.   London of course has been a victim to Islamists murdering in the name of their religious identities.

Yet she goes on to say that Europe should be more confident and comfortable in its Christianity.  The reason being " the societies we live in, the cultures we have created, the values we hold and the things we fight for all stem from centuries of discussion, dissent and belief in Christianity."  That claim needs some closer scutiny.  She is quite right that Christianity, in its various sectarian versions, had has a profound influence on Europe.  Indeed, it is worth noting the various effects the three main strands have had on different parts of Europe.  Orthodox and Catholic Europe both demonstrate significantly less success, economically, than Protestant Europe.  Yet to pretend that the Enlightenment, a secular movement of reason, was not also a profound part of this, is to be wholly ignorant.  Before that, Christianity's influence had been predominantly authoritarian and had held back progress in science and technology, let alone justice for centuries.  Whilst Christians led the movement to emancipate slaves, there were many also who resisted granting women equal rights before the law and who embraced discrimination against Jews and others of different Christian denominations. 

It is difficult to argue that the significant leaps forward in confronting state sanctioned sexism, racism and criminal persecution of homosexuals were done, in many cases, with people of religion in strong opposition.  I don't doubt there is a significant strand of Christianity that actually does represent values that are universal and consistent with individual freedom, individual rights and property rights, and indeed ethical behaviour to others, but it has been extensively tarnished, blackened and corrupted by so much else that has been used to oppress millions.

It was the willingness to oppress people for religion that saw the Founding Fathers of the United States create a new land, independent, that was secular, founded by deists who did not want to bring the sectarianism of Europe into that land.  The Declaration of Independence was written by men of the Enlightenment, who whilst Christians, were not quoting the Bible, but were leaping forward humanity in a revolutionary manner by creating a state that existed to protect the rights and liberties of its citizens, not having them as subjects.

She claims the militant secularism is seen "in any number of things: when signs of religion cannot be displayed or worn in government buildings; when states won’t fund faith schools; and where religion is sidelined, marginalised and downgraded in the public sphere.".  I think if people want to wear religious symbols to work it should be up to their employers.  Signs of religion displayed in government buildings may exist for historical reasons, and nobody should get too worked up about that.  However, to purposely add them for "balance" is quite wrong. Similarly, if people want faith schools, let them fund them, but don't force people of other faiths or no faiths to fund schools, of any kind.  The problem would be resolved simply if parents got back their taxes that pay for schools so they could buy the education they want, rather than support schools that people may find objectionable.  

The wider claim that religion is "downgraded" in the public sphere is misleading.  It is entirely appropriate to have a secular state which is blind to religion.  However, if people want to embrace religion themselves using their own time, money and property, then they should feel free to do so. 

What she neglects is the fear Christians have in their private sphere in how the state appears to treat them relative to Muslims.  Many see Muslims happily preaching, as part of their religion, hatred of homosexuals, but when a Christian couple want to run a Bed & Breakfast and not allow homosexuals to share a room, they are pilloried even though it is their home.  Would an openly gay Muslim man be admitted to a British mosque?  Hardly and quite rightly that should be up to the mosque.   Christians should have the same rights to discriminate in their own properties as others.

Baroness Warsi says she is "astonished" that the "European Constitution" has no mention of Christianity.  I'm not.  It's entirely appropriate for an institution that encompasses 27 countries all with rather different heritages, and which one day is likely to embrace some that are not predominantly Christian at all.  However, it it questionable surely whether many of these "Christian" countries are so today.  France, the Czech Republic and Estonia all have significant atheist minorities.  How would Jews in Europe react to a "Christian" EU?  

However then she simply goes off the rails altogether putting up a strawman when there is an enormous elephant in the room that she ignores.  She says:

"one of the most worrying aspects about this militant secularisation is that at its core and in its instincts it is deeply intolerant. It demonstrates similar traits to totalitarian regimes – denying people the right to a religious identity because they were frightened of the concept of multiple identities."

"That’s why in the 20th century, one of the first acts of totalitarian regimes was the targeting of organised religion."

To claim, in effect, the likes of Richard Dawkins "displays similar traits to totalitarian regimes" is quite vile. Even more vile when she ought to know that the religion with the worst record for totalitarianism, is her own.  With the exceptions of Turkey, and the former Soviet and Yugoslav republics that are predominantly Muslim, every other Muslim dominant state in the world prohibits apostasy.   What can be more totalitarian than criminalising people leaving a religion that most were "born with"?  I reject any atheists who seek to close down places of worship or shut down peaceful religious expression.  However, I don't know of any who actually do seek this.  Who denies people a religious identity?  

In fact the law demands people "respect" religious identity, when it is no more deserving of respect that any other belief system whether it political, philosophical or scientific.  People in the UK are increasingly fearful of making jokes about Islam, or criticising it, because there are Muslims, and more than a few leftwing activists ready to throw "Islamophobia" labels at those who do so.  Yet the very same people will happily pillory Christians.  The fact that Baroness Warsi is a Muslim and can't identify this double standard is astonishing. 

Yet to make the claim that "one of the first acts of totalitarian regimes was the targeting of organised religion" ignores some truths.  Organised religion has been hand in hand with more than a few totalitarian regimes, albeit with some brave exceptions.  The Nazis were not without blessing from Catholic and Protestant clerics.  The Croatian Ustashe thugs had express endorsement from the Catholic Church, as the Serbian Chetniks did from the Serb Orthodox church.  Again, Baroness Warsi ignores the role Islam has had in being central to totalitarian regimes from Afghanistan to Iran, to Saudi Arabia and the Gulf States, to Syria and Sudan.  The Japanese militarist regime was hand in glove with Shintoism.  Yes, the communists suppressed religion, but beyond the USSR and Albania, religion was not the first target, but part of an orchestrated campaign to eliminate ANY private non-state sphere.   Her cheap shot that seems to equate secularists and atheists with Nazis and Communists is vile and uncalled for, and is one of the lazy arguments by some Christians against atheism.

For the mere claim of an absence of a belief in something does not imply embracing the belief in something else.  A lack of belief in ghosts does not mean a belief in vampires.

Yet she then claims that she doesn't want to reject secularism, but that religion "should have a seat at the table" and that the UK shouldn't be a theocracy.  Let's be grateful for that, but why should "religion" have this?  What religion?  Whose interpretation of it?  What does this mean? 

Why should faith, not reason and argument, drive public policy?  Why should something be a law becomes someone says that the deity he believes in says so? 
I am an atheist. I believe in secularism for all states.  I don't believe the power of government should be coloured by any religious beliefs nor should governments treat citizens on the basis of religion.  The fact that the UK is, in fact, a state with a state religion (with the head of state leading the state church) is almost irrelevant in terms of public policy and lawmaking, although not entirely. 

However, as an atheist I do see leftwing atheists pursue religion, by which I mean Christianity (they seem scared to pursue Islam so vehemently, with no need to guess why), with a vengeance that I think goes too far.  In a capitalist free society people should feel free to pursue their own lives according to whatever belief system they have, as long as they respect the rights of others to do the same and respect the individual sovereignty of adults over themselves, their personal relations and their property.   Whether or not those beliefs are based on the supernatural or whatever, is irrelevant.   This includes being able to discriminate against people you hire or trade with based on those beliefs.   

After all, despite the best efforts of the left to equate Islam with a race (and to be fair the fascist right using hatred of Islam to justify its own racism), religion is and should always be a personal choice.  

Baroness Warsi would be far better placed embracing the secularism that is at the heart of most European states, and telling the Muslim world that it should do the same.  The utter disgusting vileness of the "crime" of apostasy outranks anything experienced by people due to their religion in the UK.  It is telling that whilst politicians run round in circles expressing outrage for the totalitarian regime in Syria embarking on its latest killing spree (it's being doing it on and off for decades after all), none raise this issue with the legion of Muslim states running from the Maghreb to New Guinea.

If militant secularism took over the Muslim dominated world there would be an quantum leap forward in the rights and lives of millions of people, particularly women and girls in these profoundly patriarchal and sexist societies.  People would not longer be brutally imprisoned, tortured and executed for "insulting" a religion they don't believe in.  It would be far easier to confront the treatment of women as property, the genital mutilation of girls, the treatment of rape as a crime rarely prosecuted unless the father of the girl is a witness, the rampant domestic violence of these societies.   In addition, the senseless sectarian and racist bigotry that is seen most clearly in the mindless Shi'a/Sunni divide, but also in how some Muslims treat others who they think are beneath them (see how Dubai treats Pakistani labour for a clue on this).

So in conclusion, Baroness Warsi's only, small, valid point is the way that some in the West have been hectoring Christians going about their private lives.   However, secularism should not be fought, it should be embraced, and most particularly in the theocratic dictatorships she has seen fit to ignore.  Some of the very ones who take aid from her government (Pakistan) and who shelter those who are out to destroy our secularism and kill us, and impose their own theocratic patriarchal death cult.  The world would be a lot better off if more states were theocracies.

There is a gap in Western society in relation to ethics and morals, which is seen most profoundly in the feral underclass that feeds ungraciously off of the taxes taken to keep them fed, clothed and housed, who have been corrupted by the moral relativism and entitlement culture propagated by the left in the past fifty years.   Baroness Warsi would be better placed attacking that culture, one that the Conservatives have barely touched upon, that the Labour Party has successfully nurtured for decades.  Combined with the identity politics that rates ethnic minorities as inherently disadvantaged, and so lowers expectations of their performance and heightens expectations of state help, it has perpetuated for Labour an ongoing constituency of dependency that provides a ready made group of people forever reliant on government giving them money (and voting Labour to make sure of it).

However, that would rely on her actually having some real courage, and given she is a politician appointed by fiat, not by election, one wonders why she can't have it?