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The Greek Disaster: State Inertia and the Market Economy

In Greece we witnessed this repulsive, internally-generated tragedy in all its horrifying glory. Unfortunately we may soon see more far-reaching consequences…

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What happened in Attica, Greece, close to Athens, is without precedent. An ordinary fire, like the ones that occur in this area almost every other summer, met up with a terrible, sudden wind that turned it into real galloping inferno.

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The tragic result was 87 dead Greek citizens and more than 20 still missing. Huge questions loom on the horizon and only very limited answers are forthcoming. Are some of the lessons from this tragedy related to the wider geopolitical and political-economic questions?

Public-sector clientelism is leading to disastrous inefficiency

Why do tragedies like these occur in social environments with firmly entrenched clientelist political systems and in political entities that operate on the periphery of major, bureaucratic, modern empires? Sweden saw huge uncontrolled fires this summer. However, there was no loss of life or major disasters that befell the urban centers.

In Portugal last year — and very recently in Greece  —  scores of people died, mainly due to the inability of the state machinery to efficiently deal with the problem. The major difference between these examples is the quality of the civil service. In Greece and Portugal there is no real ethics in the public administration, which frequently fails to meet any vigorous efficiency test .

In public bureaucracies that sprout favoritism the way trees grow branches, it is very difficult to design long-term plans to handle critical and life-threatening situations. Likewise, the political system lacks the prerequisites to draw upon informed societies that are trained to be cooperative and disciplined when there is a need for coordination.

When clientelism dictates and forms the essence of the political culture, this culminates in fractured societies that are infected with spreading islands of lawlessness and limited possibilities for administrative coherence.

In Greece in particular, the deep-rooted mentality of state favoritism produces whole sectors of uncoordinated urbanization, with no respect for the environment, chaotic borough formation, and a coastline that has been brutally violated by hasty real-estate developmental schemes.

In such a social context, thorough planning becomes almost impossible and the idea of applying administrative guidelines to deal with a crisis sounds like a joke. It is essentially the political system itself that invites disasters and not any sort of physical deluge that begets them.

The need for market solutions

Clientelism and heavy state intervention in the running of the economy and society are the basic causes of inefficiency and, henceforth, administrative chaos. It appears that the process of rational choice is the fatal enemy of the dominant mentality in such systems of government. This is represented by any model that relies on the market to deal with questions of economic policy and societal organization.

A bloated public sector that is encouraged by the political authorities to constantly expand, irrespective of its ability to deliver on its promises, becomes the major problem. Instead of being the solution to emerging issues, the state actually becomes the cause of most troubles and difficulties.

Henceforth, without clear objectives or cost-benefit solutions, the state is unable to provide reliable outcomes or to cope with situations, especially emergencies. In the case of Greece in particular, the fire-fighting service had been financially starved, while its personnel had been recruiting new staff based on specific social criteria!

In other words, firefighters entrusted with saving people from emergency situations were hired on the basis of their physical inability to deal with normal life situations, i.e., the physically handicapped, mentally unfit, generally unhealthy, or recruits who were simply from disadvantaged social backgrounds.

Relying on a market mentality means that choices are made based on measurable results, well structured plans to deal with crises, and thoroughly tested options. When none of these requirements are met, it is more than certain that achievements will be negligible and the consequences disastrous.

Hence one must assume that societies that do not rely on rational-choice procedures and which pursue policies of heavy state intervention and patron-client favoritism are not likely to see successful results. This essentially means that societies built on capitalist principles pursue measurable results that further the welfare of their citizens.

Geopolitical repercussions

There is also a geopolitical angle to these observations. If a country cannot keep up with globally established administrative and financial trends, it will end up facing dead-end situations and find itself being marginalized. With the exception of its reliance on heavy state taxation, the EU always pursues policies of open social frontiers and market economics. Countries that deviate from this logic find themselves gradually lost in a political wilderness.

They constantly creep along on the fringes of events and absent themselves from all contemporary processes. By acting as the exception instead of the rule, they will rapidly find themselves marginalized. They will become a stark anomaly and thus be excluded from every movement going forward. They will become the pariahs of the international system. Geopolitical events will pass them by, and they will be looked upon as the “black holes” of the international order.

Domestic events and major financial and/or economic choices cannot be limited any longer to national or regional occurrences. Notwithstanding the importance of events within a country, opting for heavy state intervention may lead a country into the international wilderness.

What’s more, its international standing may also be impaired, contributing to the nation’s overall marginalization.

In Greece we witnessed this repulsive, internally-generated tragedy in all its horrifying glory. Unfortunately we may soon see more far-reaching consequences…

Via Strategic Culture

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louis robertflameofwindTommy JensenplamenpetkovAlberto Recent comment authors
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flameofwind
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flameofwind

I agree with the writer. I have researched what I call Parallel Loyalty Systems whereby the individual holding a position in the Public Service does not respond to the institutional needs or mandates but rather to those who appointed her/him. This has disastrous consequences for any Bureaucracy that purports to be Modern in the Weberian sense such as Greece’s. In my research I found that in developing countries the Public Sector is so weak as to be incapable of most types of activities associated with a functioning State The exception of course, are the military and police who receive constant… Read more »

louis robert
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louis robert

Thanks to our rulers and to our media, I believe most of us have no clue what degree of institutional and social disintegration Greece has been led to by the EU, all its EU partners (with Germany leading the pack), the IMF, all banksters, together with all other predators, following what was called and covered in our media as  the (unending and unended) so-called “Greek crisis”, the epitome of barbarism under seemingly civilized behaviour. Greece was dumped like a piece of junk. We now have before us the consequences… Some day, historians will shed light on that exceptionally dramatic period… Read more »

Tommy Jensen
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Tommy Jensen

So the answer and solution is globalism!? More and more alternative media turn into propaganda bullhorns of globalism, promoting International centralised finance solutions.
Ohhh wait, this is also where the money come from. comment image

plamenpetkov
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plamenpetkov

one can’t feell any sympathy towards idiots who claim banks should be saved. stupidity will sort them out

Alberto
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Alberto

Market solutions??? Nonsense.
In other Mediterranean countries fire has been effectively controlled precisely because of State resources.
Greece is bankrupt. The money provided vy the EU went to save local banks and ultimately German and French banks.
Greeks are suffering inmensely from wild Capitalism and cuts.
Keep pontificating nonsense in favor of market solutions…. Next time provide comparative data of European nations fighting Summer fires.
RIP all Greeks victims, all of them victims of cuts and the incompetence of the NOW neoliberal Tsipras. A traitor to his people and voters.

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Some Russian monarchists want Tsar Vladimir Putin

Latest news from Russian monarchists highlight the debate over bringing the Russian Empire back to life in modern times.

Seraphim Hanisch

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A December 13 report in The Wall Street Journal shone light on a notion that has been afoot in the Russian Federation since the fall of Communism in 1991 – the restoration of the Monarchy as the form of government, complete with a new Tsar of all the Russias.

Of course, some of these monarchists have a top contender in mind for that post, none other than President Vladimir Putin himself.

This idea has long been used in a pejorative light in the West, as various shadowy and not-so-shadowy elements in the American media speculated over the years that Mr. Putin was actually aspiring to become Tsar. This was thrown around until probably the time that the Russian president spoke, lamenting the fall of Communism, and since then the prime accusation has been that President Putin wants to bring back the Soviet Union.

This is not true. It also does not appear to be the case that the Russian president wants to be Tsar. But the monarchists are not fazed in the slightest. Here is excerpted material from the WSJ piece, with emphases added:

The last time term limits forced Russian leader Vladimir Putin to step down from the presidency, he became prime minister for a few years.

This time around, a group of pro-Kremlin activists have a different idea: Proclaim him Czar Vladimir.

“We will do everything possible to make sure Putin stays in power as long as possible,” Konstantin Malofeyev, a politically active businessman, said recently to thunderous applause from hundreds of Russian Orthodox priests and members of the country’s top political parties gathered at a conference outside Moscow. They were united by one cause—to return the monarchy to Russia…

Even among those who want a monarchy, however, there are splits over what kind it should be. Is an absolute monarchy better than a constitutional monarchy? Should a blood line be established or should the czar be elected? For those who favor male succession, would it be a problem that Mr. Putin reportedly only has two daughters? Some have even suggested others besides Mr. Putin should accede to the throne.

There is a very keen interest indeed among some in Russia that propose various options as to who might best become Tsar in the event that the Monarchy is restored.

Grand Duke George Mikhailovich Romanov and his mother, Grand Duchess Maria Vladimirovna of Russia, together with Metropolitan Hilarion Alfeyev, head of the Russian Orthodox Church Department of External Relations

One candidate that has received significant attention is a man by the name of George Mikhailovich Romanov. He is an actual member of the Royal family, the heir apparent to Maria Vladimirovna Romanova, Grand Duchess of Russia. There are other heir apparents as well, and the issue as to who it should be has not been settled among the surviving members of the Romanov family.

The restoration of the Russian monarchy is unique because to carries strong religious significance. As far back as the 8th and 9th centuries, A.D., a host of saints and prophets appear to have foreseen the advent of the Soviet times and the restoration of the Tsar after their conclusion.

Some such prophecies are attributed to anonymous sources, but some are named. Here are two with rather extensive editing, so please go to the site linked for the fullest description of the prophecies.

Monk Abel the Prophet (+1831).

In a conversation with Tsar Paul I (+1801), after prophesying the destinies of all the Tsars from Paul I to Nicholas II:

“What is impossible for man is possible for God. God delays with His help, but it is said that He will give it soon and will raise the horn of Russian salvation. And there will arise a great prince from your race in exile, who stands for the sons of his people. He will be a chosen one of God, and on his head will be blessing. He will be the only one comprehensible to all, the very heart of Russia will sense him. His appearance will be sovereign and radiant, and nobody will say: ‘The Tsar is here or there’, but all will say: ‘That is him’. The will of the people will submit to the mercy of God, and he himself will confirm his calling. His name has occurred three times in Russian history. Two of the same name have already been on the throne, but not on the Tsar’s throne. But he will sit on the Tsar’s throne as the third. In him will be the salvation and happiness of the Russian realm.”

“Russian hopes will be realized upon [the cathedral of Hagia] Sophia in Tsargrad [Constantinople]; the Orthodox Cross will gleam again; Holy Rus will be filled with the smoke of incense and prayer, and will blossom like a heavenly lily.”

And from one of the most famous saints in Russian history:

St. John of Kronstadt (+1908):

“I foresee the restoration of a powerful Russia, still stronger and mightier than before. On the bones of these martyrs, remember, as on a strong foundation, will the new Russia we built – according to the old model; strong in her faith in Christ God and in the Holy Trinity! And there will be, in accordance with the covenant of the holy Prince Vladimir, a single Church! Russian people have ceased to understand what Rus is: it is the footstool of the Lord’s Throne! The Russian person must understand this and thank God that he is Russian.”

“The Church will remain unshaken to the end of the age, and a Monarch of Russia, if he remains faithful to the Orthodox Church, will be established on the Throne of Russia until the end of the age.”

What may surprise those in the West is that there are a great many people in Russia and in Orthodox Christian countries in general who take these prophecies quite seriously.

Interestingly enough, when the idea of restoring the monarchy was brought to President Putin’s attention, he regarded the idea as “beautiful” according to Lt. General Leonid Reshetnikov, but also expressed concern that it would lead to stagnation within the country.

A second statement, this one by Kremlin spokesman Dmitry Peskov, noted that President Putin does not like the idea of bringing back the monarchy, but offered no comment on the conversation with Mr. Reshetnikov.

The idea of restoring the monarchy is not completely absurd. Britain overthrew its own monarchy in 1649 during that country’s Civil War, but it was restored shortly afterwards under King Charles II. Spain cast aside its monarchy in 1931, with its king, Alfonso XIII going into exile, but after sixteen years this monarchy, too, was restored.

Both of these monarchies have become largely ceremonial, with most governing functions carried out through some kind of Parliament and Prime Minister. It is therefore not clear what a ruling monarchy in Russia would look like.

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US confirms pullout from INF treaty, Moscow will respond if missiles placed in Europe – deputy FM

Moscow will respond to possible attempts to place short and intermediate range nuclear-capable missiles in Europe if the US decides to go on with this plan.

RT

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Via RT…


Washington has confirmed its decision to withdraw from the INF treaty is final, Russia’s deputy foreign minister said, adding that Moscow will ‘take measures’ if American missiles that threaten its security are placed in Europe.

“Washington publicly announced its plans to withdraw from the treaty (the Intermediate-Range Nuclear Forces) already in October. Through the high-level bilateral channels it was confirmed to us that this decision was final and wasn’t an attempt to initiate dialogue,” Sergey Ryabkov told the Kommersant newspaper.

The Deputy FM said that Moscow will respond to possible attempts to place short and intermediate range nuclear-capable missiles in Europe if the US decides to go on with this plan.

“We’ll be forced to come up with effective compensating measures. I’d like to warn against pushing the situation towards the eruption of new ‘missile crises.’ I am convinced that no sane country could be interested in something like this,” he said.

Russia isn’t threatening anybody, but have the necessary strength and means to counter any aggressor.
Back in October, President Donald Trump warned that Washington was planning unilateral withdrawal from the Intermediate-Range Nuclear Forces (INF) treaty because “Russia has not adhered to the agreement.” The US leader also promised that the country would keep boosting its nuclear arsenal until Russia and China “come to their senses.”

Earlier this month, US Secretary of State Mike Pompeo announced that Washington will suspend its obligations under the treaty within 60 days if Russia does not “return to compliance.”

Signed in late 1988, the INF agreement was considered a milestone in ending the arms race between the US and the USSR.

In recent years, Moscow and Washington have repeatedly accused each other of violating the INF deal. While the US has alleged that Russia has developed missiles prohibited by the treaty, Russia insists that the American anti-missile systems deployed in Eastern Europe can actually be used to launch intermediate-range cruise missiles.

The deputy FM said that Washington “never made a secret” of the fact that its INF treaty pullout “wasn’t so much about problems between the US and Russia, but about the desire of the Americans to get rid of all restrictions that were inconvenient for them.”

The US side expressed belief that the INF deal “significantly limits the US military’s capabilities to counter states with arsenals of medium-range and shorter-range ground-based missiles,” which threaten American interests, he said. “China, Iran and North Korea” were specifically mentioned by Washington, Ryabkov added.

“I don’t think that we’re talking about a new missile crisis, but the US plans are so far absolutely unclear,” Mikhail Khodarenok, retired colonel and military expert, told RT, reminding that the Americans have avoided any type of “meaningful discussion” with Moscow in regards to its INF deal pullout.

While “there’ll be no deployment of [US missiles] in Europe any time soon,” Moscow should expect that Washington would try to void other agreements with Russia as well, Khodarenok warned.

The INF deal “just stopped being beneficial for the US. Next up are all the other arms control treaties. There’ll be no resistance from the NATO allies [to US actions],” he said.

“The neocons who run Trump’s foreign policy never have liked arms reduction treaties,” former Pentagon official Michael Maloof told RT. “The new START treaty which comes up for renewal also could be in jeopardy.”

“The risk of a new nuclear buildup is really quite obvious” if the US withdrawals from the INF treaty, Dan Smith, the director of the Stockholm International Peace Research Institute, told RT.

“I think the relations between the great powers – the US and Russia as well as the US and China – are more difficult than they’ve been for a long time,” he added.

However, with Washington having indicated that it wants China to be part of the new deal, “there are still possibilities for negotiations and agreement,” according to Smith. Nonetheless, he warned that following this path will demand strong political will and tactical thinking from the leadership of all three countries.

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US Pressures Germany To Ditch Huawei Over ‘Security Concerns’

This news will likely not go over well in Beijing, which is still struggling with the US and Canada over the arrest of Huawei CFO Meng Wanzhou in Vancouver.

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Via Zerohedge


First it was Australia, New Zealand and Japan, now the US is pressing the German government to refuse to use equipment manufactured by Chinese telecom giant Huawei as Europe’s largest economy seeks to build out its 5G infrastructure.

According to Bloomberg, a US delegation met on Friday with German Foreign Ministry officials in Berlin to talk about the security risks presented by Huawei’s equipment, which the US says is vulnerable to spying. The meeting in Germany follows a report from late last month claiming the US had launched an “extraordinary outreach campaign” to warn its allies against using Huawei equipment (while its vulnerability to Chinese spying has been cited as the reason to avoid Huawei, it’s also worth noting that the US and China are locked in a battle for who will dominate the global 5G space…a battle that Huawei is currently winning).

Germany is set to hold an auction early next year to find a supplier to help expand its 5G network. The Berlin meeting took place one day after Deutsche Telekom said it would reexamine its decision to use Huawei equipment.

US officials are optimistic that their warnings are getting a hearing, though any detailed talks are in early stages and no concrete commitments have been made, according to one of the people.

The US pressure on Germany underscores increased scrutiny of Huawei as governments grapple with fears that the telecom-equipment maker’s gear is an enabler for Chinese espionage. The Berlin meeting took place a day after German carrier Deutsche Telekom AG said it will re-evaluate its purchasing strategy on Huawei, an indication that it may drop the Chinese company from its list of network suppliers.

France is also reportedly considering further restrictions after adding Huawei products to its “high alert” list. The US has already passed a ban preventing government agencies from using anything made by Huawei. But the telecoms equipment provider isn’t taking these threats to its business lying down.

U.S. warnings over espionage are a delicate matter in Germany. Revelations over the scale of the National Security Agency’s signals intelligence, including reports of tapping Merkel’s mobile phone, are still fresh in Berlin five years after they came to light.

Huawei is pushing back against the accusations. The company’s rotating chairman warned this week that blacklisting the Chinese company without proof will hurt the industry and disrupt the emergence of new wireless technology globally. Ken Hu, speaking at a Huawei manufacturing base in Dongguan, cited “groundless speculation,” in some of the first public comments since the shock arrest of the company’s chief financial officer.

This news will likely not go over well in Beijing, which is still struggling with the US and Canada over the arrest of Huawei CFO Meng Wanzhou in Vancouver. In an editorial published Sunday, the Global Times, an English-language mouthpiece for the Communist Party, warned that China should retaliate against any country that – like Australia – takes a hard line against Huawei. So, if you’re a German citizen in Beijing, you might want to consider getting the hell out of Dodge.

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