Archive for January, 2010

Ontario Makes Sense on Green Energy

January 22, 2010 in Current Events, aboriginal policy, environmental policy, provincial politics | Comments (3)

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One province has finally got it right on green energy. Ontario Premier Dalton McGuinty has just announced a $7 billion deal that will have Samsung commit to a major transformation of the electricity generating system. Samsung will invest in a big way in wind and solar energy as part of a move away from dependence on fossil fuels. Samsung will also make a commitment to develop secondary industries associated with these new green energy sources. Incentives are included in the package to ensure the creation of over 150,000 new jobs. Transmission capacity will be reserved on the grid to ensure that the new green electricity will get to Ontario consumers when they need it.

Contrast this to the approach in British Columbia under Gordon Campbell. Campbell is trying to sell a hopefully gullible public on a plan to subsidize large numbers of private investors to develop hydro power at sites on sensitive rivers and in vulnerable watersheds across the province. These projects, such as the giant Plutonium power project in Bute Inlet, are destroying pristine rivers, salmon habitat, and forested valleys out of the sight of most British Columbians. Valuable licences and other incentives are being offered up by the BC government to the private companies – the venerable BC Hydro is not permitted to develop any of the projects. The biggest problem with the whole undertaking is that it can do little to displace fossil fuels as the source of electrical energy when river runs and lake levels low, but indeed increases the need for fossil fuels during such periods. Under the deals the government has put into place, BC Hydro is forced to pay exorbitantly high prices for energy produced when it isn’t needed (when lakes and rivers are high and Hydro can meet demand with its own large dams), which it must then resell at a large loss, and then it will have to go outside the province for mostly dirty coal fired electricity when the rivers are low, purchasing this power at exorbitantly high prices. These outside purchases are being forced on BC Hydro because the government has ordered the shut down of the relatively clean and efficient Burrard Thermal plant.

The sad fact is the the BC scheme is just a large scale scam to line the pockets of the friends of the government who are getting the permits and licenses for these new, dysfunctional private hydro projects. They get guaranteed high prices for electricity that is not produced when it is needed, and when it is produced must be resold by BC Hydro at a large loss because it all comes when it is not needed; a sweetheart arrangement if ever there was one. And most offensive of all, the whole plan is being “green washed” by the claim that it is a green energy plan. Sadly in this it has had the support of a couple of high profile BC environmentalists who one has to assume do not understand the admittedly complex scheme.

The Ontario plan is completely different. There will be no-payoffs to private interests who are friends of the government for unneeded power. The new wind and solar plants will to together produce power when it is needed in a planned, balanced, systematic way. Old dirty energy will be replaced by new clean energy. There are no complex transfers of money to friends of the government at the expense of provincial ratepayers. Spin-offs and new jobs will be assured. And there is no green washing, because the plan, unlike the BC one, really does, replace old dirty energy with clean energy.

Predictably the self serving private power producers who have lined up at the trough in BC are complaining about the Ontario plan. If nothing else, their criticisms confirm that the scheme they are pushing have nothing do do with green energy. If it did they would be demand that the BC governments adopt real green energy plans like the Ontario one. The fact is that the flawed BC plan is the fault of a patronage obsessed government and a corrupt arrangement that does nothing to advance green energy. It is time that energy specialists, the media, academics, and environmental groups debunk the nonsense of their claims. Until that happens all of these groups must share some of the blame for the collaboration in the green washing that has accompanied the BC plan (the worst offender is the Vancouver Sun, which has virtually become the public relations arm for the BC plan. So much for a critical, watchful media).

Ontario is to be congratulated for going green in a meaningful and in many ways radical shift in direction. What a refreshing change.

Finally, a government in Canada has done something significant and even radical.

Bad Week for Ukraine

January 19, 2010 in Current Events, international relations | Comments (0)

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Ukraine has just completed the first round of voting in a historic election for President. The old conservative Soviet era clique is back, after seeming to have been rejected by the people in the previous 2004 election. The people back then took to the streets in peaceful protest against a corrupt and authoritarian President – sadly the very one who has come out in front in this election – and forced a new election in which he was trounced.

What a difference a few years can make. Five years ago, Ukraine was alive with the promise of this Orange Revolution, which saw the democratic overthrow of the old, corrupt, Russian aligned Party of the Regions headed by the despotic Vicktor Yanukovych. Young people gained prominence as activists and democrats became the toast of the media. One of the highest profile supporters of his Orange Revolution was George Soros, who previously played a large role in the success of the pro-democracy movement in Poland with considerable success. He reached out to and provided support for the people who yearned for change.

After weeks of protests, Orange revolution leader Vicktor Yushchenko handily beat Yanukovych in the heavily monitored second election after the first was struck down by the courts because of widespread corrupt voting practices. The latter in his previous term as President was widely despised for his close ties with rich oligarchs who had become wealthy through the hand over of state assets to them and their cronies. Most of these oligarchs come from the eastern regions of the country in which people of Russian descent make up the majority. Their control over the Government of Ukraine was sustained through a system of intimidation, government favours and state power over institutions that owed much to the tactics of the Soviet system that prevailed prior to 1989.

While Yushchenko’s 2004 win was seen in the West as a victory by democratic forces. That view was not shared in Russia. There it was seen as part of a western effort to extend the zone of western influence into the previous zone of influence and over previous allies of Moscow.

Yushchenko failed to live up to the promise that people believed he offered five years ago. The majority of citizens of the Ukraine, particularly in the western parts of the country dominated by ethnic Ukranians, believed that he would break the old reliance on Russia, the tight association with the Russian speaking oligarchs, and the corruption of elections to thwart the expression of the people’s will. All of these were part of the promise of the historic 2004 elections. Instead, his presidency was marked by a worsening of economic conditions, continued corruption, stand offs with Russia over gas supplies and trade, and a failure to achieve unity with the European Community and NATO.

Sadly, the simple fact is that Yushchenko governed badly. He lost the support of the people. He fought with this key potential allies, including Yulia Tymoshenko.

This election, Yanukovych received over 35 per cent, current Prime Minister Yulia Tymoshenko 25 per cent, and Yushchenko a mere 5 per cent in Mondays’s election. The main factors were Yushchenko’s inability to sustain a coalition with Tymoshenko, the third dominate Ukraine personality of this decade and the charismatic leader of a faction that has managed to be agile enough to avoid entrapment by either of the other parties, his constant conflicts with Russia that appear to always leave Ukraine the loser, and his own abrasive personality.

Tymoshenko took most of the votes of the supporters of the Orange Revolution. She has given the appearance of favouring many of the democratic instincts of Yushchenko while avoiding the appearance of opposition to Russian influence. Today, while having many policy and personal conflicts, Tymoshenko and Yanukovych share similar positions on relations with Russia. Both argue that Ukraine can’t get along without good relations with Russian and blame Yushchenko for undermining Ukraine’s prospects by constant conflicts with Russia. Yanukovych promises that Ukraine’s will not pursue a NATO bid and will make Russian a second official language alongside Ukrainian. With great fanfare and much popular support, Tymoshenko made a deal last year with Russia to accept the shipment of Russian gas through Ukraine for European markets, something Yushchenko was never able to do.

The big loser is the Ukraine people. Democracy has a lot of respect after the failures of the last five years, and the resistance to corruption and autocratic government is much weakened as a political force. The young, so motivated the last time, are disillusioned and feel disenfranchised. The west has also been rebuked.

Regardless of who of the leading candidates from this round win the next round, Ukraine will once again be a Russian satellite, heavily influenced by Russian approaches to policy and interests. None of that is good. Part of the blame lies with the West which failed to pay nearly enough attention to Ukraine after the 2004 election. The US in particular became obsessed with Iraq, with unfortunate results for Ukraine.

The promise of the Orange Revolution can never be restored. That is a shame. The question now is whether Ukraine will ever find the democratic, western, progressive politics of Poland and other former Soviet nations.

Save Us From the Ideologues

January 6, 2010 in Current Events, federal politics | Comments (1)

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Ideologues have their place. Mostly it is in irrelevant and out of the way places like think tanks and obscure academic departments. There they are largely harmless as they spin us with their imaginary worlds and irrelevant schemes. However, they can become a problem if they are able to occupy important places of public power and influence.

One of the interesting aspects of the last quarter of century is that a certain kind of ideologue has been successful in getting into select positions where they have a tremendous impact. The primary homes of note are departments of finance in central governments, central banks, and the media. Not surprisingly in these locations they are isolated and insulated from public accountability, and thus free to work away in splendid isolation as they create their castles in the sky free of the scepticism and checks on excesses that good scientists both accept and embrace.

The ministry financial gurus and central bankers do suffer from one vulnerability. While generally their errors are legitimized by compliant academics and experts, and economies are generally resilient enough to withstand such errors without their affects generating popular discontent, they do have at their disposal the most powerful tools known in human history if their errors truly threaten the system. Thus, when the economy hit the skids in 2008, their evident fear verging on panic drove them to accept that their orthodoxy is wrong and that common sense solutions by government are essential. Giving the dramatic magnitude of the crisis, the cost to taxpayers and society were immense. But they were necessary, and as time has shown, required. The fact that they were totally at odds with their long cherished ideological beliefs in the end became irrelevant.

In the media, there is no such reality check that forces a correction. A careful monitoring of the mainstream media show that it has remained largely immune to the pressures to accept the failure of the old ways of thinking. The Vancouver Sun continues to employ a neo-conservative adherent of the Fraser Institute as its editor in control of opinions that can find expression in the paper. Certain contrary views are allowed on the pages provided they fit the non-threatening stereotype of ‘progressive critics’, but the bulk of serious analysis and opinion remains committed to the orthodoxy. The Globe and Mail steadfastly refuses to acknowledge, in a serious way, the importance of government in correcting what when wrong, and continues to promote opinions that question whether the correctives that were essential to the rescue were really a good thing. None of the major media have devoted serious attention to investigating and explaining what really caused the crisis.

One of the best examples of this kind of continued blindness is contained in the January 4, edition of the Globe and Mail. There regular columnist Gwyn Morgan claims that the rescue effort will cause a repeat of the “stagflation” of the 1970’s, even though that was caused by entirely different factors. He argues that the measures undertaken this time will result in necessary cuts in social programs, higher interest rates for business and another contraction. He attacks medicare, whatever that has to do with the monumental failures of private markets. He predictably goes on to demonize unions, and political “inertia”.

He in fact falls back on a reliance the same old ideologically driven views that got us to where we are. He wants government to be the gift that keeps on giving to the private sector, while acknowledging nothing about the failures of that sector. Social spending apparently caused recent problems, a suggestion so preposterous as to make it laughable if it wasn’t so often repeated in the mainstream media. Of course according to this view of the world, social spending will cause the next set of problems as well. Not a word is offered about the correctives needed to avoid a repeat of the real problems that got us into this mess. Government must be ever ready to coddle a severely failing market system, while striking hard against the very measures that have worked to make our world a livable place. But of course the latter don’t fit the ideological world view of Morgan, the Globe and Mail, and the Canadian mainstream media generally. So whatever the problems, they must be blamed.

Before completely trashing ideology, let me recognize that it does have one positive role in certain situations. Ideologues have been important in keeping alive a necessary social conscience, and to remind of us of our duty to protect and assist the powerless and the marginalized. However, when it does so to protect and support the powerful and the privileged, it is sad bordering on the pathetic.