Accidental Deliberations: Monday Morning Links

Miscellaneous material to start your week.

– David Dayen and Ryan Grim write that “free trade” agreements are in fact turning into little more than cash cows for hedge funds and other big-money speculators:

Under this system, a corporation invested in a foreign country can appeal to arbitration panels, consisting of three corporate lawyers, if that country enacts a law or regulation that violates a trade agreement or discriminates against the company. The ISDS courts can then award billions of dollars to the corporation to compensate it for the loss of expected future profits.

The problem is that these courts can also be used by speculators, who buy up companies for the sole purpose of filing an ISDS claim, or who finance lawsuits from corporations for a piece of the claim award.

“ISDS allows a small group of ultra-rich investors to extract billions of dollars from taxpayers while they undermine financial, environmental and public health rules across the world,” Sen. Elizabeth Warren (D-Mass.), an early opponent of ISDS, told HuffPost. “Our trade deals should not include ISDS in any form.”

The use of ISDS as a moneymaking engine, rather than for its initial purpose ― to protect foreign investors from having their factories expropriated or their businesses nationalized ― raises the question of whether there’s a better system available.

“Why should hard-won sovereign advances, like rules against polluting or consumer protections, be at risk when the obvious solution is for the investors to put their skin, not ours, in the game?” wondered Jared Bernstein, former chief economist to Vice President Joe Biden and a critic of TPP. “The simple solution is to have them self-insure against investment losses.”

– Mike Balkwill highlights the need to stop consulting endlessly about poverty, and instead take action by ensuring people have enough resources to meet at least their basic needs. Ann Hui reports on the especially dire circumstances facing First Nations families in Northern Ontario who have to spend upwards of half of their income on overpriced food. And Miguel Sanchez criticizes the Wall government’s attack on benefits to people with disabilities in Saskatchewan.

– Nicole Thompson points out how the Libs’ changes to the temporary foreign worker program are actually making matters worse for caregivers by eliminating any right to apply for permanent resident status. And Martha Burk documents how workers can lose out when employers force them to accept payroll cards rather than paycheques.

– Erich Hartmann and Alexa Greig argue that it’s long past time for Canada’s federal government to provide stable funding for health care in partnership with the provinces, rather than contributing only as much as it wants to at any given point. And Tom Blackwell reports on the dangers of relying on private providers by highlighting how they inevitably leave the public system to deal with complications.

– Finally, Tom Parkin notes that we should base our discussion of electoral reform on the actual experience of similar countries, not the obviously-false claims of people wanting to fearmonger us into accepting the status quo. And Andrew Coyne draws a parallel to the census as an argument for mandatory voting.

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Northern Reflections: No Reason To Reject The System Outright

As Canada moves towards proportional representation, the Cassandras are wailing loudly. Andrew Coyne gives two examples — from opposite ends of the political spectrum:

Here, for example, is Bill Tieleman, B.C. NDP strategist, writing in The Tyee: “How would you like an anti-immigrant, racist, anti-abortion or fundamentalist religious political party holding the balance of power in Canada? … Welcome to the proportional representation electoral system, where extreme, minority and just plain bizarre views get to rule the roost.”

At the other ideological pole, here’s columnist Lorne Gunter, writing in The Sun newspapers: “PR breaks the local bond between constituents and MPs … In a strict PR system, party leaders at national headquarters select who their candidates will be, or at least in what order they will make it into Parliament …” 

To the sceptics, Coyne writes, look at the countries where PR has been adopted:

Austria, Belgium, Denmark, Finland, Germany, Iceland, Ireland, Luxembourg, the Netherlands, Norway, Sweden and Switzerland, all of whose parliaments are wholly or partially elected by proportional representation. 

We can at least describe accurately how their political system actually works, rather than rely on caricatures born of half-remembered newspaper clippings.

At one end, you have countries such as Austria, Finland, Iceland, Ireland, Luxembourg and Sweden, all with six to eight parties represented in their legislatures — or about one to three more than Canada’s, with five. At the other, Belgium, Denmark, the Netherlands and Switzerland, with 10 to 12. 

Virtually all of these countries have some element of local representation: only the Netherlands, whose total area is less than that of some Canadian ridings, elects MPs at large. And none uses the “strict” form of PR Gunter describes, known as “closed list.” Rather, voters can generally choose which of a party’s candidates they prefer, so-called “open lists.”

How unstable are these systems? Since 1945, Canada has held 22 elections. In only one of the PR countries mentioned has there been more: Denmark, with 26. The average is 20. It is true that the governments that result are rarely, if ever, one-party majorities. But, as you may have noticed, that is not unknown here. Nine of Canada’s 22 federal elections since 1945 have resulted in minority parliaments. 

The sceptics like to point to two countries — Israel and Italy. But both countries are outliers:

The Israeli parliament has 12 parties, Italy’s eight. By comparison, France, which uses a two-round system, has 14, while the United Kingdom — yes, Mother Britain — now has 11. More to the point, there are circumstances unique to each, not only in their parliamentary systems — Israel uses an extreme form of PR, while Italy’s, which has gone through several, defies description — but in their histories and political cultures. 

So, yes, it’s important that the system be designed with care. But the fact that two countries have designed their systems poorly is no reason to reject the system outright.

Image: canadians.org

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