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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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Saudis Admit Khashoggi Killed At Consulate “In Fist-Fight”, King Salman Fires 5 Top Officials

Saudi Arabia confirmed tonight that Washington Post columnist Jamal Khashoggi was killed at its consulate in Istanbul on 2 October.

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Democrat Congressman Adam Schiff has weighed in on the Khashoggi murder admission from KSA claiming “the Saudi report of Khashoggi is not credible.”

The White House issue a statement…

Via Zerohedge


Saudi Arabia confirmed tonight that Washington Post columnist Jamal Khashoggi was killed at its consulate in Istanbul on 2 October.

In a statement put out on Saudi state television, citing an initial investigation by Saudi prosecutors, SPA said that:

“an argument erupted between him [Khashoggi] and others whom he met in the Saudi consulate in Istanbul leading to a fistfight which led to his death.”

Prosecutors said the investigation was still ongoing and that 18 people, all Saudi nationals, had so far been arrested, SPA reported.

“The Kingdom expresses its deep regret at the painful developments that have taken place and stresses the commitment of the authorities in the Kingdom to bring the facts to the public,” the statement said.

Additionally, Saudi Arabia’s King Salman has removed a key royal adviser and a senior intelligence official..

King Salman issued an order to remove Saud al-Qahtani, an adviser to Crown Prince Mohammed bin Salman, according to the state-run Ikhbariya television.

The monarch also relieved deputy intelligence chief Gen. Ahmed al-Assiri.

This follows the narrative reported by The New York Times on Thursday that Riyadh is looking to blame Assiri for the purported murder of Khashoggi in an effort to shield Crown Prince Mohammed bin Salman from the blame.

Saudi King Salman has also ordered the formation of ministerial committee led by crown prince Mohammad bin Salman to restructure the general intelligence agency.

As Ali Shihabi, Founder, The Arabia Foundation, tweets:

“The removal of two top officials, a cabinet ranking, very powerful and close advisor of MBS and the Deputy Head of Foreign intelligence + 4 other Generals in foreign intelligence (virtually its whole top leadership) cannot be written off as a cover up. This is unprecedented.”

This is not saying “rogue killers” but implicating virtually the whole top leadership of foreign intelligence. They carried out a mission that went sour very quickly and tried to cover it up initially. Bad news travels slowly to the top.”

We await President Trump’s “very severe consequences.”

 

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Pat Buchanan: Caravan Puts Trump Legacy on the Line

Unwanted mass migration is the issue of our time, as there is no foreseeable end to it before it alters America irremediably.

Patrick J. Buchanan

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Authored by Patrick Buchanan via Buchanan.org:


Our mainstream media remain consumed with the grisly killing of Washington Post columnist Jamal Khashoggi in the Saudi consulate in Istanbul, and how President Donald Trump will deal with Crown Prince Mohammed bin Salman.

Understandably so, for this is the most riveting murder story since O.J. Simpson and has strategic implications across the Middle East.

Yet far more critical to the future of our civilization is the ongoing invasion of the West from the Third World.

Consider the impact of the decision by Chancellor Angela Merkel in 2015 to throw open Germany’s doors to 1 million refugees from Syria’s civil war.

Last weekend, in a crushing blow to Merkel, the Christian Social Union, the Bavarian sister party of her CDU, won its smallest share of the vote in half a century, 37 percent. Her coalition party, the SPD, saw its share of the Bavarian vote fall to a historic low of less than 10 percent.

The right-wing Alternative for Deutchland saw its support rise to 10 percent and has become a force in German politics. Some conservatives are urging the CDU to adopt the AfD hardline on illegal immigration.

The message sent by the Bavarian electorate is the message voters across Europe have been sending to their own capitals for years: You are failing in your first duty — defense of the homeland from foreign invasion. Mass migration of unassimilable peoples and cultures from a global South represents an existential threat to our Europe.

As Merkel’s chancellorship approaches its end, French President Emmanuel Macron, her progressive EU partner, has seen his approval fall to below 30 percent.

The U.S.-led NATO alliance may guard the Baltic and Black Sea regions against a Russian invasion from the east. But in Central, Southern and Western Europe, the more feared invaders are the peoples of Africa and the Muslim world, whose numbers are expected to triple or quadruple by this century’s end.

And as their numbers grow, so, too, does their desperation to escape, even at risk of their lives, the poverty, wars and repression of their homelands to cross the Med and fill the empty spaces left by a depopulating Europe.

It also now appears that the U.S. elections, not three weeks away, may be affected by another immigration crisis on the U.S. border.

As of Thursday, a caravan of 4,000 refugees without visas had crossed from Honduras into Guatemala and was heading toward Mexico. By Election Day, it will either have been stopped, or it will be here. And this caravan is a portent of things to come.

According to The Washington Post, during FY 2018, which ended last month, 107,212 members of “family units” crossed over into the U.S., “obliterating the previous record of 77,857 set in 2016.”

Citing DHS figures, the Post adds, “Border patrol agents arrested 16,658 family members in September alone, the highest one-month total on record and an 80 percent increase from July.”

When Trump, under intense political fire, ended his “zero tolerance” policy of separating refugees from their children, this message went out to Mexico and Central America:

Bring your kids with you when you cross the border. They will have to stay with you, and they cannot be held for more than 20 days. Thus, when they are released, you will be released to await a hearing on your claim of asylum. The odds are excellent that you can vanish into the U.S. population and never be sent back.

Enraged, Trump has threatened to cut off aid to El Salvador, Honduras and Guatemala if they do not stop the caravans and has warned Mexico he will use the U.S. military to secure our border.

Unwanted mass migration is the issue of our time, as there is no foreseeable end to it before it alters America irremediably.

As these migrants are almost all poor, not highly skilled, and do not speak English, most will join that segment of our population that pays no income taxes but qualifies for social welfare benefits like food stamps, medical care and free education in our public schools.

They are thus a net drain upon the resources of a nation that is already, at full employment, running a deficit of $779 billion a year.

These migrants, however, are a present and future benefit to the Democratic Party that built and maintains our mammoth welfare state, and which, in presidential elections, routinely wins 70 to 90 percent of the votes of people whose trace their ancestry to Asia, Africa and Latin America.

Not without reason, Democrats believe that if they can change the composition of the American electorate, they can control America forever.

If Donald Trump was elected on any one issue, it was immigration and his promises to secure the border, build the wall and halt the invasion.

How he deals with the impending crisis of the migrant caravan may affect both the fate of his party in November and his presidency in 2020.

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‘Mohammad bin Salman Must Go’, but US-Saudi Ties Are Here to Stay

Was it possible that Mohammed bin Salman (MBS) was so arrogant that he could not imagine the consequences of such a heinous crime?

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Authored by Federico Pieraccini via The Strategic Culture Foundation:


Mohammad bin Salman is fully aware of the Western elite’s understanding of its own values. While he may be given a pass to bomb Yemen and kill thousands of innocent civilians, he should know better than to dare touch a Washington Post columnist – “one of ours”, as one MSNBC host said. Did he not realize there would be consequences?

As more information came out, many analysts began to confront the most obvious question. Was it possible that Mohammed bin Salman (MBS) was so arrogant that he could not imagine the consequences of such a heinous crime? How could MBS betray Trump this way, not anticipating that the Democrats and the mainstream media would jump all over Trump’s friendship with him? Could he be so foolish as to place in jeopardy foreign investments planned at the Davos in the Desert conference on October 23? The answer to that question is apparently: yes, he could.

The only rational explanation for this behavior is that MBS thought he could get away with it. Remember that we are talking about someone who had Saad Hariri, the prime minister of Lebanon, kidnapped and carried off to the Kingdom, with his whereabouts unknown for days but with very little reaction from the mainstream media or Western politicians. It is possible that in this instance, MBS simply misjudged the level of Khashoggi’s popularity amongst neoliberals of the Washington establishment, provoking an unexpected response. Furthermore, the thesis that the Saudis understood that they had some kind of green light from Trump is not to be totally dismissed. Such a backlash is what you get from having a big mouthpraise your friends too much, and tweet all the time.

The rapidity with which the US media, and especially dozens of Republican and Democratic senators, attacked Saudi Arabia, blaming it for the atrocious crime, is rather unusual. After all, the Saudi elites have been inclined to behave in such a manner over the last 40 years. But it also highlights the ongoing inconsistency and double standards: nothing is said about Yemen, but the Kingdom is currently under the strongest censure for allegedly offing a journalist.

As I had already pointed out in my previous article, Khashoggi was clearly part of a faction opposed to the current ruling royal family in Saudi Arabia, headed by MBS. To understand this Saudi golden boy of the US mainstream media as well as military-industrial-spying complex, we have to go back to Mohammed bin Nayef. Bin Nayef has been under house arrest for almost two years, immediately purged by MBS as soon as he assumed power as crown prince. Bin Nayef has for decades been the CIA’s go-to man in Riyadh, helping the CIA & Co. pretend to “fight” al Qaeda in the Kingdom while using al Qaeda as a tool to inflict damage on US geopolitical adversaries.

The removal of bin Nayef by MBS was greeted with anger by a part of the US establishment close to Washington think tanks and the CIA and was never fully digested. MBS and his father, King Salman, needed to consolidate power around the throne at the time, and bin Nayef was certainly part of the faction opposing MBS, as was Khashoggi.

Naturally, these antipathies were set aside by the CIA, think tanks and neoliberals in the media due to to the importance of the relationship between Saudi Arabia and the US, especially vis-a-vis the US Petrodollar. MBS even undertook a tour in the US to help smooth the relationship with the West, being hailed as a new reformer, if you can believe that.

Nowadays,the relationship between Riyadh, Tel Aviv and Washington is based on the strong friendship between Trump and MBS and Trump and Netanyahu. Furthermore, the strengthened link between Trump and MBS, facilitated by son-in-law Jared Kushner, who is close to Israel, served to create a new alliance, perhaps even hinting at the possibility of an Arab NATO. Israel is eager to see more Saudi and US engagement against Iran in the region, and the Saudis similarly praise Israel and the US for being engaged in a fight against Iranian influence in the region. In this way, Trump can please his Israeli friends and see Saudi money pour in as investments.

These agreements have led to a series of disasters in the Middle East that go against the interests of Israel, Saudi Arabia and the US. Israel’s recklessness has led to the deployment of a wide range of Russian state-of-the-art weapons to Syria, preventing Israel and the US from acting as freely as before. The disastrous Saudi war in Yemen, the almost diplomatic break with Canada, the kidnapping of the prime minister of Lebanon, and now the Khashoggi affair, have further weakened and isolated Saudi Arabia, MBS, and therefore Trump. The US is no longer able to influence events on the ground in Syria, and so the initial plans of Israel and Saudi Arabia have foundered, after having devoted hundreds of millions of dollars to arm and train terrorists to overthrow Assad.

The Khashoggi affair plays into this situation, exacerbating the war between elites in the US as their strategies in the Middle East continue to fail. The neoliberal mainstream media immediately used the Khashoggi story to pressure Trump into taking a firm stance against one of his last friends and financiers, trying to further isolate him as the midterms approach. Many in the US deep state are convinced – as they were convinced that Clinton would win the presidency – that the House and Senate will end up in Democratic hands in the November elections, paving the way for Trump’s impeachment and for Mike Pence to become president. Pence, a prominent figure of the evangelical right, would be the perfect president for Israel, placing Tel Aviv in the driving seat of US foreign policy as never before. In this scenario, it would certainly be preferable for certain parts of the elite to have a different figure at the helm in Saudi Arabia, seeing as MBS appears to be an unstable leader. Possibly they would prefer someone tied to the US secret services – someone like Mohammed bin Nayef. For these reasons, Democrats, some Republicans and the mainstream media have gone all out against MBS and Trump.

Turkey seems to be using the situation to further widen the fracture between Saudi Arabia and the rest of the world. Since Doha is paying the bills for Erdogan these days, with the Turkish lira at a low, it is essentially the Al Thani family running the PR show in the Turkish media. It looks like the Qatari media are paying back with interests all the negative media they received from the Saudis over the past year. Despite this, neither Ankara nor Riyadh is intent on any kind escalation, both knowing that any suffering on their part is a boon for their enemies.

An interesting aspect related to the Khashoggi affair concerns the sources of the news about the investigation, all anonymous and coming from Turkish police or from people linked to the top echelons of the Turkish state. Knowing the odd state of relations between Ankara and Riyadh, and especially between Turkish ally Qatar and Saudi Arabia, all this news coming from one source should at least be taken with a grain of salt. What is certain is that the Turks had immediate knowledge of the matter regarding who, what, where, when and why. This means that they must have bugged the Saudi consulate in Istanbul, allowing the MIT, Turkey’s intelligence service, to know in real time what was happening to Khashoggi. The story concerning the Apple watch appears to be an attempt by the Turks to thrown off the scent Saudis who may be scratching their heads wondering how the Turks came to have such intimate knowledge of what transpired in their consulate.

For Turkey, the Khashoggi affair could be the occasion for a rapprochement with the US, following a deterioration in relations in the last two years. Turkey has few friends left, and after being cornered by Russia and Iran in Astana with regards to Syria,  it also has to deal with the tensions between Riyadh and Qatar as well as balance its relations with Iran and Israel. Erdogan would like to exploit this event as much as possible, and the release of Pastor Brunson seems to indicate Ankara’s willingness to extend an olive branch to Washington.

Russia, Syria and Iran have everything to benefit from this ongoing internal quarrel between elements within Saudi Arabia, Israel, Turkey, Qatar and the US. Whatever the outcome of the Khashoggi affair, Moscow, Tehran and Damascus can only benefit from any deterioration of relations between these countries.

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