Year: 2007

Prins and Rayner on Kyoto

John Quiggin21 Comments

Not surprisingly, this Nature article by Gwyn Prins and Steve Rayner entitled Time to ditch Kyoto, has attracted plenty of attention. I’m responding quickly and therefore somewhat brusquely. I’ll try to write something more considered a bit later.

Before giving a detailed response, let me observe that a reader with limited time need only look at the following few sentences

In September, the United States convened the top 16 polluters. Such initiatives are summarily dismissed by Kyoto’s true believers, who see them as diversions rather than necessary first steps. However, these approaches begin to recognize the reality that fewer than 20 countries are responsible for about 80% of the world’s emissions.

This argument is premised on the assumption that the Bush Administration, representing the world’s largest source of emissions (though China is catching up fast), sincerely wants to do something about climate change and called the September meeting with this purpose in mind. If anyone believes this, I have just become aware of a business opportunity from Nigeria in which they may be interested.
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Academic scribblers

John Quiggin22 Comments

Having been active in Australian policy debate for around fifteen years, its sobering to realise that I can only identify one issue where I’m confident I’ve had a significant impact on the ultimate outcome. That topic was the subject of my first column in the Financial Review, called Fightback without the Food Tax (for those who weren’t around at the time, Fightback! was John Hewson’s manifesto for the 1993 election, centred on a GST). Not only did Hewson eventually incorporate an exemption for food in his GST proposal (too late to turn around the perception that he was a dogmatic ideologue) but the Democrats accepted the view and imposed it on Howard. This was something of a Pyhrric victory as far as I was concerned, though. While I thought, and still think, a GST with an exemption for food made good public policy, the New Tax System package as a whole was not a good deal and should have been rejected.

At a much more marginal level, I think one of my columns might have had an impact on the campaign this weekend. In this piece in mid-September, I argued that the Howard government had plenty to gain, and nothing to lose, from ratifying Kyoto. Now it turns out that, at about the same time, Malcolm Turnbull was making the same case in Cabinet, unsuccessfully of course. The leak of this revelation has given Howard another day or two of bad headlines. Of course, the argument is obvious, and Turnbull is quite sharp enough to work it out for himself. Still, it does make the effort of turning out a column every fortnight seem a little bit more worthwhile.

Weekend reflections

John Quiggin8 Comments

Weekend Reflections is on again. Please comment on any topic of interest (civilised discussion and no coarse language, please). Feel free to put in contributions more lengthy than for the Monday Message Board or standard comments.

Leaning on the bank

John Quiggin21 Comments

Today’s Fin reports that Howard, Costello and Vaile are all leaning on the Reserve Bank not to raise interest rates at its Tuesday meeting. Howard and Costello are arguing that the Bank is obliged to focus on headline rather than underlying CPI movements, while Vaile is claiming that there is a convention of not increasing rates during a campaign. Costello’s warning of an economic tsunami heading for our shores can be seen as more of the same.

This seems both desperate and self-defeating. After the inflation figures, the government’s best hope was that the Bank would share the view that the uncertain global situation made a rate increase undesirable. Ideally, some hints to this effect from the Bank would promote the view that we should stick with the economic managers we know. But now, any such decision will be seen as buckling to government pressure. That makes it more likely that the Bank will raise rates, and ensures that, if they don’t, it will be a political negative for the government.

Kelly on climate

John Quiggin20 Comments

While I’m on the Oz, this exceptionally confused piece from Paul Kelly gets just one thing right. Howard’s refusal to ratify Kyoto, despite accepting all the key terms, is evidence of paralysis. I can’t be bothered attempting a point-by-point rebuttal, so I’ll just state the facts about which Kelly seems to be confused
* The Kyoto Protocol constitutes the agreements to act under the UN Framework Convention on Climate Change for the period up to 2012
* The basis of the agreement was that developed countries would cut emissions first, and that less developed countries would do so in later rounds (the post-2012 round is about to be negotiated)
* Suggestions to “amend the Kyoto Protocol” make no sense, since it’s only got four years to run anyway, and its successor is about to be negotiated
* The reason Howard is paralysed is not because he is dogmatically inflexible on symbolic issues (look at his backflip on reconciliation) but because ratifying Kyoto would put him into direct conflict with George Bush, and he is incapable of taking such a step

Conceding defeat in the culture wars

John Quiggin50 Comments

Not long ago, Tom Switzer (opinion editor for the Oz) was claiming victory in the culture wars at a Quadrant dinner (hat-tip to reader Jason McDonald). Now, Greg Sheridan is conceding defeat, at least on the assumption (now nearly universal) that the Liberals are heading for defeat. Unsurprisingly, both of them focus a lot of attention on the ABC, though Sheridan’s list extends to the media in general (News Limited? PBL?) and (a kind recognition that we still exist) universities.

The most striking feature of both articles is that they seem stuck in the fights of the 1990s, over political correctness, multiculturalism and so on. There’s no mention at all of climate change, and hardly any of Iraq (Switzer notes in passing that he opposed it). Yet if you want to explain the failure of the right wing in the culture wars you can’t go past these two cases. In both cases, having chosen sides, the right treated facts as being either utterly irrelevant or as talking points to be trumpeted or denied according to political need. In both, they hung on, time after time, to positions that had long since ceased to be defensible. These are tactics that worked reasonably well in culture wars and history wars, since there’s rarely any final reckoning. But in the case of Iraq and climate change, reality has a way of obtruding.

Looking at the disagreement between the two, Sheridan is much more focused on the Liberal party, and on control of institutions. He recognises that the attempt to impose control from the top has failed, though he persists with the silly “elite” terminology in which a university lecturer is a member of an elite from which, say, the CEO of a major company is excluded.

The other big difference is in the implied view of Kevin Rudd and, implicitly, of other centrists like Clinton and Blair (or, more relevantly now, Gordon Brown). They are clearly not leftwingers, and in that sense, the culture warriors can declare victory and go home. On the other hand, although their commitment to the social democratic strand of liberalism is so thin as to be almost invisible at times, they are clearly in a different category from the US Republicans who carry the rightwing flag in the global culture wars.

Time to call this one

John Quiggin50 Comments

I don’t have much of a reputation for accurate election predictions[1],[2], but I’m going to call this one for Labor. Short of something unexpected and uncontrollable by either side, I can’t see the Libs pulling this out of the fire. I think it’s just a matter of waiting out the remaining month.

[1] A week out from the 2004 election, I thought the position was in Labor’s favor, and even on the day I thought the odds close to 50-50, so I wouldn’t base large-scale betting-market investments on my judgement if I were you.

[2] By contrast, I think I’ve called the Iraq war pretty well, but that’s another story.

Books I’ve been reading

John Quiggin4 Comments

As well as Dance to the Music of Time, there’s Bob Burton’s Inside Spin a well-researched look at the operations of PR in Australia. As well as standard PR and Astroturf operations, there’s plenty of interesting material on think tanks like CIS and IPA. And I’m also reading To Firmer Ground edited by John Langmore, which provides a lot of useful policy suggestions for a social-democratic government. Sadly, the decision to match Howard’s tax cuts has closed off much of the room for manoeuvre available to Labor over the next three years, assuming they get in.