Australia in the Asian Century

Lucky in the Asian Century

by Graeme Dobell - 4 July 2012 6:03PM

A key submission to the Asian Century inquiry – perhaps a foundational text – is a work that is fast nearing its 50th birthday.

In contemplating the grand task of an Asian future for Australia, Ken Henry would well understand the many layers of thought in Donald Horne's The Lucky Country, a dissection of Australia's regional fate that still resonates for its verve and insight – and the quality of its word-smithing.

Consider one of the most famous paragraphs ever penned by an intellectual proving his love of Oz by skilled use of both whip and scalpel: 'Australia is a lucky country run mainly by second-rate people who share its luck.' The Lucky Country was first published in 1964 and is still on the shop shelves. Do yourself a favour and shell out $9.95 for some classic Horne the next time you see that distinctive Penguin cover.

Horne's two great themes have been the subject of separate inquiries by Ken Henry: the modernisation of the Oz economy and the coming age of Asia. The way the Treasury Secretary's review of the tax system was bowdlerised and bastardised by Canberra's present rulers might draw a silent nod from Henry for the Horne rating of our leaders.

One of the many merits of The Lucky Country is as a reminder of the considerable distance Australia has already traveled, using much more than luck. When the book first appeared in the 1960s, Australia's mental barriers to Asia were shut nearly as tight as the migration laws. I was a teenager in that era, and I often return to Horne's rendering of the time to revisit familiar faces and deep attitudes that seemed at the time like the natural order of Oz.

As editor of The Bulletin in 1960, Horne had deleted The Bully's old motto: 'Australia for the White Man'. This was a politer rendering of the original version: 'Australia for the White Man and China for the Chows.'

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Australia in the Asian Century

The currency of China's prerogatives

by Graeme Dobell - 28 June 2012 10:33AM

Australia is being forced to become more sensitive to China's prerogatives in everything from currency flows to resource projects to the application of foreign investment rules.

In meshing our economy with Japan, Australia was able to retain a US dollar frame of reference that happily cohabited with a US alliance structure. A yuan frame of reference will mean that some of the questions we never had to consider with Japan will confront us. If this is the Asian Century, then we are now in the China decades.

The adjustment pains are already showing. Both sides of Oz politics, when in government, have experienced the intense discomfort of receiving Chinese burns. The daily attacks (minute by minute) China mounts on Australia in cyberspace are a constant reminder of the hurt Beijing can deliver. The decision to ban Huawei from the National Broadband Network was a significant 'no' moment, a demonstration of Australia's capacity to push back and a reminder that cyber attack can cause blowback costs on those doing the attacking.

Still, great growth tends to outrun grumbles. We are going to be a lot more worried and even more security obsessed if China comes a cropper and starts to fail, rather than continue its present glorious trajectory. A China that crashes is an even more burning question for Australia than a China that continues to rise.

Even as economic sun shines ever brighter, China has managed to achieve the difficult feat of driving Australia closer to the US alliance. The intimacy of the Howard decade suggested it would be impossible for Australia to actually tighten its embrace of the US. Julia Gillard has managed it.

The Obama visit to Australia seemed to be a fine expression of the hope/wish/determination that defence and security would be in one box while trade and economics would keep going on uninterrupted in a separate sphere altogether. That is the way we and Washington would like it to work. Beijing, though, can play the game by other rules.

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Australia in the Asian Century

Reordering Australia's Asia preferences

by Graeme Dobell - 25 June 2012 2:25PM

Trade and economic interests are not always definitive, but they have obvious weight and, most importantly, they influence the hierarchy and slow re-ordering of national preferences.

The shift of economic weight has cumulative effects on preferences which feed into judgments about national interest. What were once easy options can become unthinkable or at least look narrow and outdated because of these cumulative changes. This is not soft power influence, but the hard power calculations of dollars and cents.

Consider how Australia thinks about China and India using the APEC frame. In 1989, Australia was happy to help create the key governmental expression of the Asia Pacific's economic future, APEC, while not having China as a founding member. The blood and horror of Tiananmen meant China could not be in. And when, a few years later, Beijing did join, it had to walk through the door with Taiwan and Hong Kong, an equivalence that is unthinkable now.

When APEC was being created, India did not even stand on the threshold of membership. India is still out, but now APEC is the loser. When it chaired APEC in 2007, Australia was guilty of a failure of imagination and leadership for not crusading on India's behalf. China was quite happy with the existing membership, while ASEAN was more interested in India's role in the East Asia Summit. Australia did not push.

Yet if we were doing APEC from scratch today, both China and India would be so essential as to have something of a veto. 

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Australia in the Asian Century

Australia no longer home alone

by Graeme Dobell - 20 June 2012 9:15AM

The Asian Century conversation chips away at one of the deep-seated sources of Australian insecurity: the sense of being home alone.

The good news for Australia in the Asian Century is that we are all in this together. This is not just feel-good, team-building stuff; it reflects the hard numbers of geo-economics and the hard power calculations of geopolitics.

The sense of regional 'oneness' is being massively helped by the toughest strategic issue of all: the US and China. Look around: everyone else is grappling intensely with the same issue. And in many cases, the conundrum presents in a similar form. The challenge everyone faces is well summarised by Singapore's Defence Minister, Ng Eng Hen:

The political, economic and cultural ramifications of a newly-empowered Asia are bound to impact existing security and economic relationships. One stark present example illustrates this: China is currently the largest trading partner of ASEAN, Australia, Japan and South Korea, while the United States remains the dominant resident security power in this region. This divergence of economic partnerships and defence relationships will challenge existing alignments among nations.

Because it is an election year in China and the US, that starkness is a prominent and unsettling element of the intimately intertwined security and economic spheres.

For Australia, the dilemma is presented as the first time our major economic partner is not also an alliance partner. For Asia, render this as the tension between the relationship with the traditional security guarantor and the region's new paramount economic power. The power shift is palpable and everyone feels it.

Australia's Asia Century discussion has shown a range of understandings of the basic point that it will be such a century for us because we will share it with Asia. This has some value beyond statement-of-the-obvious cliché or truism because it reflects a significant shift in the Oz psyche.

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The Canberra column

Shangri-La Dialogue snapshots

by Graeme Dobell - 4 June 2012 12:38PM

Things are shifting in Asia when a performance by Burma's Defence Minister is a highlight of the Shangri-La Dialogue.

That is highlight in a good way. Over the past couple of decades, Burma's public performances have tended to the dry and the deadpan, reflecting the deadly nature of the military regime. Burma's Defence Minister, Lieutenant General Hla Min, started his speech with some thoughts on the need for nations to change and transform to achieve both political freedom as well as economic prosperity. Then responding to questions, he delivered a series of verbal shell bursts:

  • Burma had abandoned its nuclear research program completely: 'In this new government, we have already given up all activities on nuclear issues, and we have no further plans to extend on this.'
  • The options opening up for Burma mean it no longer needs to rely on North Korea: 'Because of our opening and our new efforts we have stopped such relationship with North Korea.'
  • The military would be ready to dilute its constitutionally-guaranteed hold on a quarter of the seats in parliament: 'According to rules and regulations there are ways and means to improve on and change the constitutional articles; not as a dogma. So when the time is appropriate, there would be changes and this 25 percent participation could be reduced in future, if and when it is appropriate; and that I want to impress upon you.'
  • On the quotable quotes side, Hla Min came up with a fish-and-water metaphor for the need to make changes slowly: 'As for the 25 per cent participation in Parliament, to be frank, it is like, for example, if you have a fish in fresh water, you cannot put the fish in salt water, so we need to take time for transformation and progress.'

Things are certainly shifting inside the black box of Burma's regime. Other snapshots from Shangri-La:

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Australia in the Asian Century

Asian security: Long climb to Shangri-La

by Graeme Dobell - 1 June 2012 3:18PM

Asia does some things differently. So the biggest annual gathering of Asia Pacific defence ministers and officials is a public-private partnership between the Singapore Government and a British think tank, the International Institute for Strategic Studies, sponsored by worthy companies such as Boeing and Mitsubishi.

Then there's the name, the Shangri-La Dialogue, which adds a touch of lyrical serendipity to the hard choices and hardware calculations of military brass and their masters. Shangri-La is not where the strategic hard-heads think Asia is heading any time soon; it's the name of the Singapore hotel where it will all happen again this weekend for the 11th time.

In the novel Lost Horizon, Shangri-La is a mythical utopia somewhere in the Himalayas. Singapore does add one Himalayan element to the conference through its use of members of the Gurkha contingent, a military presence in Singapore for more than 50 years. The Shangri-La Hotel is ringed by well-armed Gurkhas plus scores of police and all the paraphernalia of the modern multilateral ministerial: sniffer dogs, the mirror check under cars, the metal detectors and the plain-clothes chaps with earpieces and broad shoulders. It's all impressive security, and then the Americans arrive!

The privatised defence dialogue will this year draw 27 delegations from the Asia Pacific and beyond, involving defence ministers, chiefs of defence staff, security analysts, and military and intelligence chiefs. The keynote address will be delivered by Indonesia's President, Susilo Bambang Yudhoyono, while US Defence Secretary Leon Panetta is jetting in, maintaining the annual habit followed since Donald Rumsfeld first attended in 2004.

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The Canberra column

Burma's Black Box: Regime vs icon

by Graeme Dobell - 29 May 2012 2:34PM

Aung San Suu Kyi is showing fine touch as she moves from being an icon to a politician.

Her status as icon is yet to be matched by her formal power in Burma's political structure. If present shifts were to continue, she might fulfill her destiny as Burma's democratically-elected leader. Not yet, though. Suu Kyi is playing the cards she's been dealt with skill and some daring, but the hard reality is that the military regime still dominates the game and makes the rules.

The regime has the power to call off the game completely and again banish Suu Kyi to house arrest. Many surprising signs point in a hopeful direction, but the continuing risk of backsliding or backlash is significant; the bad old habits are deeply ingrained. This brings us to a set of core questions about the extraordinary moment playing out in Burma: why is the regime loosening its grip? Why now? And will the democratising trend continue?

Burma's course is markedly different from the Arab Spring. Burma had its Saffron Revolution in 2007 and that was brutally snuffed out. The current shift was set off by the regime and it is driving the process. The black box nature of the regime means it is virtually impossible to give definitive responses to the questions like 'why?' and 'why now?' So without promising answers, let's try to give some marks to various elements of the puzzle and see what they add up to.

The scoring approach is inspired by Suu Kyi's response to a journalist's question about where Burma's shift towards democracy stands on a scale of one to ten: 'We're approaching one.'

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The Canberra column

The new normal for a hungry DFAT

by Graeme Dobell - 15 May 2012 3:31PM

For the first time in a while, an Australian foreign minister has a 'normal' relationship both with his department and his prime minister. Bob Carr will get few points for this, but he is delivering a period of business-as-usual for DFAT.

To see why Carr offers a chance for an unusual 'normal' period, glance at the last decade and the stewardships of Kevin Rudd, Stephen Smith and Alexander Downer.

Rudd was a driven foreign minister with impressive intellectual qualities, but his contribution to DFAT was overshadowed by his larger role of prime minister in exile. No normal there. Smith was safe and competent but ever-constrained by having to work to a prime minister who also acted as the über foreign minister and having to persist with the budget settings bequeathed by Alexander Downer.

By the end of Downer's record dozen years as foreign minister he had more experience on any specific issue than the DFAT officers briefing him. No normal there. During the second half of that long reign, Foreign seldom managed to challenge Downer and he didn't often surprise the Department.

The true growth and evolution in Downer's term was in his relations with Howard rather than with DFAT. Fair enough; dealing with the prime minister is always a foreign minister's most important diplomatic mission, and one of many reasons why The Kevin was such an unusual foreign minister.

Part of the Downer legacy in Foreign Affairs is the fiscal diet he imposed for a decade – not quite starvation but very slimming. He also drove something of a reconceptualisation of DFAT's role, which saw much of Foreign Affairs working as a service department, dealing with ever-expanding consular responsibilities imposed by the great Oz foreign wanderlust (isolationism is never going to be much of an option around here because so many Australians are eager to engage with everybody else).

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The Canberra column

Kiwi or not Kiwi, that is the question

by Graeme Dobell - 4 May 2012 2:58PM

The dynamic of Australia's slow and successful integration with New Zealand is that the Kiwis retain veto rights. Any real change has to be embraced by the New Zealanders because they are the ones who have to make the big adjustments. 

This study by the Oz and Kiwi Productivity Commissions on the future of the relationship is really a set of questions for New Zealand about what further adjustments it is prepared to make to get closer to Australia's economic strength. The study is an attempt to gaze out over the next 15 years towards a common currency and shared monetary and fiscal policies.

Such deep questions can be asked because of what has already been achieved in the Closer Economic Relations process, 'one of the most comprehensive bilateral free trade agreements in existence.'

The CER 30th birthday next year is a good moment to think fresh thoughts about where to steer the concept of an Oz-Kiwi 'single economic market'. CER lets goods, services and people move freely across the Tasman. Hesitate before flying into New Zealand with Oz cheese in your bag or into Australia with Kiwi apples, but mostly CER lives up to the claim of being one of the cleanest free trade agreements in the world.

The currency union question is the one that keeps popping up when the two sides peer into the future. The Oz-Kiwi discussion paper observes:

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The Canberra column

Finally, a Pacific worker scheme

by Graeme Dobell - 30 April 2012 4:02PM

In a small and quiet step, Australia is permanently opening its door for a few Pacific Islanders to do seasonal farm work. 

The Pacific worker pilot scheme was a relative fizzer, but its slow growth has meant there was little political or bureaucratic pain involved in making it permanent. And so, from July, the three-year experiment becomes permanent. Now it becomes a question of actually making the thing work. 

If you want to drill down into how this process has evolved, a good starting point is Jenny Hayward-Jones' 2008 paper on Pacific workers and Jenny's Interpreter piece in August 2008, when the three-year pilot was announced. Then, to see why less than half the available Pacific worker spots got used in the pilot, see this month's conference at the ANU and the paper by Danielle Hay and Stephen Howes.

The short answer for the failure so far: the backpackers with holiday visas have done the work. Also, the growers fear the risks and red tape of the Pacific scheme. To win, the Islanders have to beat the backpackers on productivity and reliability.

The broader significance is that for the first time, the South Pacific superpower is doing something specifically for Pacific workers who want to keep living in the Pacific. The Islanders don't have to migrate to get access to the region's economic powerhouse.

The shift has been a long time coming. A decade ago, this was a policy untouchable in Canberra. It was taboo because Australia had repeatedly bashed such concepts the moment they were proposed. Date the animosity from the moment in the 1969 when John Gorton finally and properly terminated the silly ministerial musings about PNG becoming Australia's seventh state.

At the same time, Australia was on its journey from having a discriminatory to a non-discriminatory immigration policy. Australia went from discriminating against the Islanders (along with much of the rest of the world) to a purist position where it wouldn't or couldn't discriminate in favour of its own neighbours. 

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The Canberra column

The subterranean submarine debate

by Graeme Dobell - 23 April 2012 10:55AM

This post is part of a debate - click here to see how this debate started and developed.

Canberra's submarine dithering illustrates the point that sometimes a decision not to make a decision actually amounts to a decision.

The longer Government defers or dithers on the actual steps involved in building a new submarine in Australia, the less scope it has for making such a decision. As time passes, the window for building in Oz sinks while the option of buying off-the-shelf from overseas rises. Thus, making no decision means that, eventually, the passage of time will mean only one decision is possible. And it will not be the outcome currently promised or proclaimed.

Style this the 'subterranean subs debate'. It is subterranean in the sense that a lot of argument is going on, but the central issue – whether to build new subs in Oz – is not formally or officially in play. 

The Government has a White Paper that says 12 boats will be built and they will be built here. This is what is known as a P-O-L-I-C-Y. The point about policy is that usually governments are supposed to act to bring the plan to reality. The words in the 2009 White Paper are clear enough:

...the Government has decided to acquire 12 new Future Submarines, to be assembled in South Australia. This will be a major design and construction program spanning three decades, and will be Australia's largest ever single defence project. The Future Submarine will have greater range, longer endurance on patrol, and expanded capabilities compared to the current Collins class submarine.

Sounds exciting. And hard. Little wonder Cabinet is in no rush to focus the periscope on this extremely difficult topic: your head hurts getting across the detail, the costs involved tend towards the incomprehensible and the political return for all this effort is virtually nil.

The failure to do much of anything to realise our 'largest ever single defence project' is driving the subterranean subs debate to the surface. And, ever ready to help, step forward the always-reliable Andrew Davies and Mark Thomson with a concise rendering of how the submarine dither is now a deep dilemma — Australia is running out of time to design and build an entirely new sub. read more

The Canberra column

The PNG stress test

by Graeme Dobell - 13 April 2012 11:16AM

Papua New Guinea's political leaders are putting their system through a slow but diabolical stress test:

  • The struggle of wills between two strong leaders who both claim to be the rightful prime minister.
  • A short-lived military mutiny in January that aspired to coup but quickly fell to farce.
  • A series of legal struggles that have morphed into a direct contest of wills between the politicians and the judges – not least the move to suspend the Chief Justice.
  • Parliament's vote last week to delay mid-year elections by six months, met by a public display of anger that may have faced down the parliament (see Danielle's two fine posts on the people of PNG speaking directly to power in the age of the mobile phone).

The tourism slogan about PNG as 'Land of the unexpected' has evolved into 'Extraordinary one day, bizarre the next.' PNG politics has an ability to go close to disaster and yet, at the last moment, to skip past calamity. The show makes great viewing but it is hard on the nerves.

For much of this current stress test, Australia must stand on the sidelines, urging due process and restraint, hoping for the best, but acknowledging its lack of direct power.

Indeed, sometimes Australian interventions can push things in the wrong direction. A heavy-handed warning from Australia contributed to the drama surrounding last week's vote by the PNG parliament to crack the constitution's stipulation of five-yearly elections, shifting the scheduled vote out from June to December. Such a deferral would always get plenty of votes in a PNG parliament because so many MPs lose their seats at any election. But one other reason the manoeuvre seemed so attractive was that Australia's new Foreign Minister had told them not to do it. Giving a bit of biffo to Oz is always joyous politics in the Pacific.

Having blown a giant bird at Bob Carr with the parliamentary vote, the PNG Prime Minister, Peter O'Neill, almost immediately turned around and said the elections will go ahead as scheduled. Ah, from unexpected to extraordinary to whatever happens next.

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The Canberra column

Army be happy

by Graeme Dobell - 27 March 2012 12:02PM

An injunction from the Old Digger Almanac rises from the mists to take on fresh force as Defence turns towards a new era:

Army be happy with what you've got,

For Sea and Air must get what they have not.

The return to the basics (and basing) of Defence of Australia raises the prospect of the Army again being squeezed to let the Navy and Air Force get at big pots of cash. Some old doctrinal debates are set for a fresh canter.

Australia's completed Posture Review is due to go to the Minister this week, outlining the basing needs to bolster the defence of the north and west of the continent. Next, Defence will conduct a Force Structure Review. And then it will be time for a Defence White Paper. By the time the White Paper comes into view in 2014, most of the Army elements in Afghanistan will be heading to the exit; the big 'perhaps' is whether special forces will stay in an overwatch role. 

Post-Iraq, post-Afghanistan, Defence will be off in search of the new day, transforming itself into a 'joint, expeditionary, amphibious force.' This is where history starts to haunt the Army. The previous era of jointery and Defence of Australia  – the 1980s and 90s – was a time of short rations for those in khaki. The Navy and Air Force would take care of the sea-air gap and all the Army had to do was mop up any survivors that struggled ashore. The intellectual architect of the approach, Paul Dibb (channeling Arthur Tange) still rates as an Army antichrist.

The Army sees the success in East Timor in 1999 as an incredibly close-run win that might just have been a major disaster because of decades of neglect. The Dibb-ist response is that Army is always happy to blame others for its own inability to think and manage or even carry water. 

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The Canberra column

The whiter, brighter, joined-up ADF

by Graeme Dobell - 22 March 2012 12:34PM

The coming era for Australian defence has a back-to-the-future feel – but with lots of shiny new add-ons.

If the Australian Defence Force was a washing powder known as ADF, the advertisement would sing about the promise of a better and brighter DoA (Defence of Australia), with extra regional power. And for those added enzymes, we give you even more jointery.

'Jointery' is the less than novel idea that the Army, Navy and Air Force should actually be able to work with each other. When DoA was driving all before it in the 1980s, jointery was just the thing. It was necessary because of the rather uncomfortable fact that the history of the three services meant they rarely had to think too deeply about each other.

The Australian military served in eight conflicts in the 20th century, but in none of these did Australia's Army, Navy and Air Force perform together as an integrated force.* Australia's armed forces have served under the strategic and sometimes even the operational command of allies, but not together. Iraq and Afghanistan were new conflicts that spoke to those old Australian habits.

To consider the retro elements in our new era, turn to one of our smarter military thinkers and an important moderniser of the ADF, Peter Gration, who served as Chief of the Defence Force from 1987 to 1993. Here is Gration in 1988, talking about injecting jointery into a single service culture: 

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Unisys forum on the future of secrecy

Secrecy and freedom (of information)

by Graeme Dobell - 16 March 2012 10:52AM

This post is part of a debate - click here to see how this debate started and developed.

If secrets are government's attempt at monopoly, then FoI is about liberalisation and opening the market. The FoI experience in Australia illustrates why free trade so often wins in theory but has a hard time in reality. As the previous column argued, politicians and bureaucrats draw both power and control from maintaining their monopoly.

But surely, you say, it is politicians that have passed the FoI laws. Why would they fight against their own handiwork? The answer is that advances in FoI usually come with new administrations; the commitment to making government more open fades as the experience of government grows. To illustrate, here is a rant from Tony Blair's memoir:

Freedom of Information. Three harmless words. I look at those words as I write them, and feel like shaking my head till it drops off my shoulders. You idiot. You naive, foolish, irresponsible nincompoop. There is really no description of stupidity, no matter how vivid, that is adequate. I quake at the imbecility of it. Once I appreciated the full enormity of the blunder, I used to say — more than a little unfairly — to any civil servant who would listen: Where was Sir Humphrey when I needed him? We had legislated in the first throes of power. How could you, knowing what you know, have allowed us to do such a thing so utterly undermining of sensible government? Some people might find this shocking. Oh, he wants secret government; he wants to hide the foul misdeed of the politicians and keep from ‘the people’ their right to know what is being done in their name. The truth is that the FOI Act isn't used, for the most part, by 'the people'. It's used by journalists. For political leaders it's like saying to someone who is hitting you over the head with a stick, 'Hey, try this instead', and handing them a mallet. The information is neither sought because the journalist is curious to know, nor given to bestow knowledge on 'the people'. It's used as a weapon.

But another and much more important reason why it is a dangerous Act is that governments, like other organisations, need to be able to debate, discuss and decide issues with a reasonable level of confidence. This is not mildly important. It is of the essence. Without that confidentiality, people are inhibited and the consideration of opinions is limited in a way that isn't conducive to good decision-making. In every system that goes down this path, what happens is that people watch what they put in writing and talk without committing to paper. It’s a thoroughly bad way of analysing complex issues.

The end bit is an almost reasoned discussion of the need for some secrecy in the discussion phase, if not the end phase, of a government process. But the stuff at the top is just a marvellous, almost glorious outpouring from a great media spinner who, at the end, could no longer either charm or cajole. Blair gives an unusually frank glimpse into the fears and insecurities that make even top politicians fret and froth.

This jeremiad against FoI comes from a leader who goes on to finish his book by arguing that the new divide in politics is not between left and right but 'open versus closed'. And progressives, Blair announces, must be champions of the open position. 

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Unisys forum on the future of secrecy

The secrets economy

by Graeme Dobell - 15 March 2012 2:28PM

This post is part of a debate - click here to see how this debate started and developed.

In the twin realms of politics and government, secrets are a tradable commodity. 

In this market, knowledge really is power – or a function and a facet of power. To use an economic framework: secrecy, knowledge and power are all 'coin of the realm', the legal currency of a political system.

The word 'market' is used with intent, because applying an economic model shows the reality of what politicians, minders and senior bureaucrats actually do with secrecy and secrets. Secrecy can confer monopoly power on a pollie. And the market model also leads quickly to that key economic question – who profits? Various participants in this market will price secrets in different ways. Demand, supply and sales get complicated when you stir in government ministers, journalists and the military.

An important distinction must be made between the values attached to secrecy by the political class (ministers, pollies, minders) and the military. The military believe secrets have an absolute value, while politicians view secrets as having relative value, according to the needs of the market and the size of the secret. Public servants are supposed to view secrets in the same way as the military (an imperative imposed by their customs, training and the law) but constant contact with pollies means senior bureaucrats can come to understand the benefits of trade, even if it is seen as black market activity.

The military must believe that secrecy is an absolute value; if secrets leak, operations can fail and people can die. This is core value stuff, well illustrated by Jim Molan's contribution to this debate: 'There is a need for secrecy and there is abuse of secrecy. There is a lot to be protected and some good reasons for protecting it. One of the greatest forces for getting the balance wrong is government convenience.'

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The Canberra column

The woes of the Defence Minister

by Graeme Dobell - 7 March 2012 10:48AM

Two high-profile Labor men reached for the Foreign Ministry last week – Bob Carr and Stephen Smith. Carr won because the Prime Minister asserted herself.

On this reading, Smith got second prize – he gets to stay as Defence Minister. The line coming out of the Labor Party is that Smith 'took one for the side – again!' First, he gives up being Foreign Minister for Kevin Rudd, then he does it again for Bob Carr. Who knew Foreign was such a prize? Especially when the received wisdom has been that what Smith really wanted was to be Attorney-General.

If Smith had gone back to Foreign, Defence would have had an Oscar Wilde-Lady Bracknell moment: to lose one Defence Minister is a misfortune, to lose three looks like carelessness. And Labor would have been on to its fourth Defence Minister in as many years. Smith needed to stay just to keep the churn-misfortune-carelessness index in check.

The Russell complex already knew its Minister was less than enamoured; now it knows in some public detail the depths of that discontent. Joel Fitzgibbon left Defence with a bitter and angry heart; John Faulkner left the job with a heavy and troubled heart. Whatever the state of Smith's heart, we know it does not lie with Defence. 

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The Canberra column

2012 BC (Bob Carr as Foreign Minister)

by Graeme Dobell - 5 March 2012 3:51PM

By anointing Bob Carr, the Gillard Government has edged ahead of the Hawke Government as the most pro-American Labor administration since war drove John Curtin to turn to Washington 'without any inhibitions...free of any pangs.'

Carr's America-friendly credentials mean he is well placed to go panda hugging with a will. This is the Canberra version of 'only Nixon can go to China': an Australian government with a firm grasp on the alliance can – with judicious dexterity – find a lot of free space to engage with China. Call this the Hawke-to-China or the Howard-to-China technique.

Before doing the crystal-ball gazing, however, consider what Carr has achieved even before being sworn in, both for foreign policy and the budget. Carr delivers one major policy positive compared to Kevin Rudd. Australia now has a Foreign Minister who can actually talk to the Prime Minister. It is a testimony to the strength of Australia's government and diplomatic apparatus that the machinery kept going even as Gillard and Rudd moved from détente to Cold War to bloody battle. 

The machinery was working but the cylinders were starting to splutter. When the Prime Minister decides that not talking to her Foreign Minister is the cleanest and easiest way to make a major change in policy towards India, then foreign policy is developing strange quirks. Carr resolves that problem. The appointment is that of a leader who seems to have decided that she won't die wondering: roll the dice and give it a go with whatever time is left.

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The Canberra column

History's echoes in new Defence review

by Graeme Dobell - 24 February 2012 9:35AM

The US is hastening out of two wars and rethinking its defence interests in Asia, while Australia realigns the alliance and moves more military might to the north and west of the continent. With all that in flux, two ex-Defence Secretaries, Ric Smith and Allan Hawke, are well placed to produce one of those rare Canberra reviews that actually helps reshape the way Defence imagines and structures its future. 

The previous column looked at the Hawke-Smith progress report on their Australian Defence Force Posture Review.

To see the possible significance of their signpost, place it beside two of the landmark Defence reviews that rank beside any White Paper: the Tange Report and the Dibb Review. The Hawke-Smith effort has nowhere near the revolutionary ambition of Tange's complete remaking of Defence in the 1970s nor quite the scope of Dibb's work in 1986. Yet comparing the Posture Review with Tange and Dibb hints at the importance of the shifts that Smith and Hawke are working on.

The two ex-secretaries will do much to set the terms of the 2014 Defence White Paper, just as Tange's remaking of Defence defined the post-Vietnam 1976 Defence White Paper and Dibb provided the intellectual framework for the 1987 White Paper. To understand the import of those markers, consider this expression of what amounts to the standard Canberra narrative up until the 9/11 decade gave us the Global War on Terrorism:

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The Canberra column

On Kevin as Foreign Minister

by Graeme Dobell - 23 February 2012 11:54AM

Before the political firestorm consumes every ounce of oxygen in Canberra, let's consider Kevin Rudd's foreign policy performance.

As Foreign Minister, his work rate was prodigious. The ambition nearly as high. The self-confidence and the sense of conviction never flagged. The intensity was undoubted; only the ultimate intent was regularly questioned. This was the Foreign Minister of a middle power who ranged wide. Rudd asserted an Australian right to a voice over Libya and Syria with the same earnest involvement he brought to the big issues of the Asia Pacific.

Usually, a foreign minister is expected to have the confidence and backing of the prime minister. That could never be the case between Gillard and Rudd. Instead, Rudd stands with the handful of Australian foreign ministers who flew solo. The two that were most successful in this solo role were Spender and Evatt, which prompted a column early last year depicting Rudd as Evatt with a BlackBerry.

Rudd could never 'do a Hayden'; he could not, ultimately, settle for being a fine foreign minister in the service of the leader who'd robbed him of the top job. Rudd was, indeed, a fine Foreign Minister, but he found it hard to mention his Prime Minister by name. 

The personal tensions are so great, why did this strange arrangement hang together as long as it did? The answer goes to both policy and politics. 

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The Canberra column

Good posture: A new Defence blueprint

by Graeme Dobell - 16 February 2012 2:35PM

On the top tier of Defence Department reports, where White Papers reside, there are also a few reviews that reshape the way Defence thinks, plans and builds.

Defence does reviews by the dozens. Those that rise to the level of lasting blueprint are rare. The canny pair of warhorses, Ric Smith and Allan Hawke, seem to be in the process of constructing a lasting landmark with their Australian Defence Force Posture Review.

Originally, the above sentence was going to call Smith and Hawke 'canny and cunning civil servants', but that didn't quite hit the right note. These are ex-mandarins of long experience who have the great strength of no longer being serving public servants. Both Hawke and Smith did distinguished service as secretaries of the Defence Department. They have wrestled long and hard in the bowels of Russell and now get the chance to speak as the most intimate of outsiders. 

Bear in mind that, even when they were insiders, these were public service leaders who exemplified a certain rough-hewn Canberra tradition, as able to say 'no bloody way' as 'Yes, Minister'. As evidence, consider Hawke's report on his first 100 days as Secretary back in 2000, when he bashed and booted his own organisation, decrying 'a culture of learned helplessness among some Defence senior managers – both military and civilian. Their perspective is one of disempowerment.' The phrase 'learned helplessness' has attained minor classic status.

Ric Smith generated his share of pithy sayings too, not least over his gargantuan struggle to get Defence accounts into an order that would actually pass muster with the Auditor-General. That excruciating experience gives some context to the wry Smith line that the way Defence calculated his own salary, factoring in the value of all benefits, meant the published figure included the 'accrued value of the view from my toilet.'

No Defence-bashing or jokes about money are in evidence this time round. Smith and Hawke are constructing a document that they want implemented. These are practical blokes trying to do big, practical things. That means getting broad agreement in Russell, not swearing at the horses nor scaring the politicians.

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The Canberra column

Intelligence review not a pinch on Flood

by Graeme Dobell - 3 February 2012 1:09PM

Yesterday's Graeme Dobell post on the Intelligence Review is here.

The Cornall-Black Independent Review of the Australian Intelligence Community falls short when put beside its predecessor, the 2004 Inquiry into Australian Intelligence Agencies by Philip Flood.

On the simplest measure, Flood runs to nearly 200 pages; Cornall-Black’s effort can't make 50 pages. Wordage does not always equate to wattage, but Cornall-Black seem conscious that they have delivered short rations when compared to Flood:

The Flood Inquiry had its primary focus on issues concerning the intelligence that had been provided to government on Iraq's weapons of mass destruction. Those issues had already received a great deal of public attention and had been the subject of a parliamentary inquiry. As a consequence of this general awareness, Mr Flood was able to publish a comprehensive unclassified version of his report. This Review is different. It is not directed to a particular and well-known area of concern. The Terms of Reference called for a broad investigation into many highly classified or sensitive areas of the agencies' operations and resulted in detailed recommendations, which cannot be made public.

Savour the last bit for its quaint charm. Much may change in the rest of the world, but in Canberra it is still possible to run a straight-faced line about stuff that is just sooooo sensitive and secret, only sound chaps can know about it.

The Cornall-Black characterisation of their predecessor is disingenuous. Flood analysed Australian intelligence failures, shortfalls and ructions that went well beyond Iraq to consider Jemaah Islamiyah, Solomon Islands and East Timor. It is worth a quick recap from Flood to highlight the sharpness that is missing this time. 

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The Canberra column

A meagre intelligence review

by Graeme Dobell - 2 February 2012 3:15PM

The Independent Review of the Australian Intelligence Community is thin gruel.

A hungry critique of the report prepared by Robert Cornall and Rufus Black would be that it tastes more like an insider's review than an independent inquiry. Yes, complaints about the food value of the report borders on the carping, since food of any sort in this area needs to be prized, however meagre the serving. Official signposting about the Complex is so unusual as to be valuable just for the fact that it exists, even if it doesn't offer much in the way of calories.

The usual Canberra response to the journalist cry of 'Where's the beef?' tends to be that the hacks are always hungry – when Oliver Twist grew up, he became a reporter so he could keep pleading for more.

To get some context, consider the views of two Australian prime ministers on what the intelligence/national security community has been up to. One is acid, the other is almost a classic in the 'no worries, it’s all good' genre. The soothing words come from Julia Gillard, releasing the public version of the report:

  • Australia's intelligence agencies are performing well following a period of significant growth to deal with the security challenges of the 9/11 decade.
  • Australia and its citizens are safer than they would otherwise have been as a result of intelligence efforts.
  • Our intelligence capabilities have contributed significantly to the global security effort.
  • Australia has built intelligence capabilities broadly commensurate with our growing security challenges.
  • The current basic structure of the Australian Intelligence Community (AIC) remains appropriate, including the operational mandate of agencies.

Well, that's all OK. Any dissent from this benign view is to be treated as a form of 'noises off' — muffled discordance well beyond Canberra.

For the negative case, turn to a former prime minister who is still listed in the history books as a conservative. Consider Malcolm Fraser's spray, in this 2010 interview, on security laws that 'are worse than those in any other country that would claim to be democratic' and on the 'foolish and stupid' way ASIO uses its powers:

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The Canberra column

The 2011 Madeleine Award winner

by Graeme Dobell - 31 January 2012 1:22PM

Some years it's hard to build much tension in the Oscars and thus it is with our third annual Madeleine Award for the use of symbol, stunt, prop, gesture or jest in international affairs.

As with the Oscars (over to you Meryl), one Madeleine-worthy performance demands to win the prize. The Madeleine statuette must go to the extraordinary double act that has merged into one name: Merkozy.

Ah, the sustained summitry, the recurring moments of impending crisis barely averted in the careening rush towards the next moment of dramatic Euro-disaster. And — zut alors! — just look at the bills. Even Hollywood blockbusters can't burn through cash like Angela and Nicolas. Ultimately, it may be a hit or a flop, but already it has had a great run. Jawboning markets, turning-over governments, zapping leaders, propping up economies; this is performance art of the highest ambition. Not surprising that such a complicated act doesn't always hit the mark (make that Deutsche Mark).

At the centre of this extraordinary marathon of finance and diplomacy stands Merkozy. Angela Merkel gets to play the Bundesbank Bismarck. Gideon Rachman records Merkel's chilling impact on a roomful of politicians: 'When she walks into the room, everybody falls silent. It's like the headmistress coming in.' Nicolas Sarkozy can reflect on the Clemenceau-flavoured musings of previous generations about the power of a re-united Germany, best expressed by the novelist Francois Mauriac: 'I love Germany so much, I am glad there are two of them.'

All that remains is to nominate the essential moment that best expresses the Merkozy performance.

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The Canberra column

The Madeleine: The Diana Directive on the utility and force of photographs

by Graeme Dobell - 30 January 2012 11:36AM

Time for the final stage of our annual Madeleine Award for the use of symbol, stunt, prop, gesture or jest in international affairs. The contest involves all those acts that define relations between states and statespersons — the words and deeds and even props such as umbrellas and shoes.

The judges this year paid heed to the Diana Directive on the Utility and Force of Photographs. Tony Blair quotes the Princess of Wales: 'As Diana used to say, the picture is what counts.' Many a minder or advance person has made or sunk a career on that simple bit of advice – the picture defines the story (politicians in trouble: avoid EXIT signs and stand in front of the flag). Blair's biography recounts Diana's understanding, both emotional and analytical, of the demands of the media age: 

I had a conversation with her once about the utility and force of photographs and how they could be best used, which showed a mind that was not only intuitive but also had a really good process of reasoning. She had the thing totally worked out. Occasionally she would phone and say such-and-such a picture was rubbish or what could be done better, and though not, as I say, at all party political, she had a complete sense of what we were trying to achieve and why. I always used to say to Alastair [Blair's PR supremo]: if she were ever in politics, even Clinton would have to watch out.

Apply the Diana rule to these two pictures (left), courtesy of The Atlantic. Damien Ma commented on the two pix, 'the Chinese blogosphere has juxtaposed yet another photo of some unknown Chinese official against Obama shaking hands with supporters in the rain...Obama doesn't even have to try to project soft power.'

The message has got across the Taiwan Straits. After being re-elected this month, President Ma Ying-jeou stood out in the rain to give his victory speech. So confident was Ma in the democratic conferral of the Mandate of Heaven, he stood unprotected beneath the heavens. No underling-held-umbrellas for him.

Reporting on the impact Ma's damp speech had in China, the NY Times recorded a joke bouncing around Chinese email accounts: A Taiwanese man brags to his Chinese friend that he will go to the polls in the morning and know the results that evening. 'You guys are too backward,' the Chinese friend responds. 'If we had to vote tomorrow morning, we would already know who is elected by tonight.'

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The Canberra column

The chutzpah of the Fiji Supremo

by Graeme Dobell - 20 January 2012 2:25PM

The classic definition of chutzpah is the story of the young man who murders his parents and then asks the court for leniency because he's an orphan. Fiji's Supremo has chutzpah by the bucket-load. Brazen and bombastic, Frank Bainimarama has done it again with his bravura performance scrapping the Emergency Regulations, then almost immediately re-imposing them under a different name.

Jenny Hayward-Jones has tracked the ins-and-outs of this now-you-see-it, now-you-don't, now-you-rename-it act with her initial post and then this after the Supremo finished the trick. This column will reflect on the Supremo's latest machinations in the spirit of a great Rolling Stones song, You Can't Always Get What You Want, which is on the classic album, Let it Bleed. The song and the album title both catch the resigned essence of the approach that Australia and the rest of the South Pacific have had to adopt in dealing with Bainimarama for six years.

One verse of the song also resonates for your columnist, who has heaped his share of written opprobrium on the Supremo:

And I went down to the demonstration
To get my fair share of abuse
Singin', 'We're gonna vent our frustration
If we don't, we're gonna blow a 50-amp fuse'
Sing it to me, now

To venture a view of the pain Bainimarama is causing tends to guarantee 'a fair share of abuse' from the blowhards of the blogosphere. No complaints about that; always nice to be noticed, and if you skip through a battlefield, explosions follow. 

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The Canberra column

The 2012 OOPS! Award

by Graeme Dobell - 17 January 2012 7:12PM

 With a raucous honk of horns and a skate across random banana peels, we slip on stage to make the annual OOPS! Award.

The OOPS! is a minor award in every sense. It's a prize for misunderstanding, mistake, mishap, bungle, blue, blunder...well, you get the idea. The OOPS! is the preliminary event (and opposite genre) to our annual Madeleine Award which is all about the use of symbol, stunt, prop, gesture or jest in international affairs. This year's contenders for the OOPS! are...

A strong early entry came from the Chinese protocol officer who asked the British Prime Minister, David Cameron, and his party to remove red poppies from their lapels before going into the Great Hall in Beijing for a formal welcome.

The Chinese official said the poppies would be taken as a reminder of the humiliation China endured during the Opium Wars. Cameron refused, noting that the poppy he was wearing was remembrance of a different conflict altogether: the Great War. This rates as a cross-cultural misunderstanding of OOPS!-winning proportions, with lots of blunder mixed in.

However, the OOPS! is a bit of January ephemera, and the symbolism on both sides is just too heavy for this award to carry. For much the same reason, the Chinese PLA missed out on the gong in last year's Madeleine finals for staging the first flight of China's new stealth fighter just as the US Defense Secretary touched down in Beijing to defrost a rather icy period in military relations.

As always, the OOPS! has to have a few members of the politico class just getting it wrong. This is such a rich field, we take a less-is-more approach (and just think, you have the year-long run to the US presidential election still to enjoy).

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The Canberra column

The third annual Madeleine Award

by Graeme Dobell - 6 January 2012 1:56PM

The American grand strategist George Kennan observed that much diplomacy is actually a form of theatre. On the international stage, nations strut, signal and stumble, seeking to win through bluster and brio rather than bribe and bash.

And stepping again into that that world of diplomatic signs and semaphores, The Interpreter announces one of our January rituals — The Madeleine Award for the use of symbol, stunt, prop, gesture or jest in international affairs. This annual prize is named after Madeleine Albright, in honour of her penchant for sending diplomatic messages via the brooches worn on her left lapel.

Albright wore a golden brooch of a coiled snake to talk to the Iraqis, crabs and turtle brooches to symbolise the slow pace of Middle East talks, a huge wasp to needle Yasser Arafat, and a sun pin to support South Korea's sunshine policy. The former US Secretary of State and Ambassador to the UN chronicled it all in her book: 'Read My Pins: Stories from a Diplomat's Jewel Box'.

A classic in the genre is Albright's account of her favourite mistake: wearing a monkey brooch to a meeting with Vladimir Putin that caused the then Russian President to go ape. Others are getting with the Madeleine spirit. We happily acknowledge being out-punned by Foreign Policy's UN blog, Turtle Bay, which reported last year's prize with this headline: 'The Madeleine Awards: once more into the brooch'. 

This year we invite you to join the process of selecting this tribute to a great example of diplomatic theatre — as comedy or drama. You have a week to give us your nominations. No era is exempt: we're happy to reward great Madeleine moments from history as well as more recent performances.

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The Canberra column

A trade deal without China

by Graeme Dobell - 21 December 2011 12:20PM

Much thought has been devoted to the choices and chances confronting Australia because of potential tensions between the US alliance and the trade bonanza with China. How diabolical would it be, however, if Australia manages to align itself against China both in its traditional alliance stance but also in a new regional trade structure?

Ponder that proposition for a moment: Australia lines up against China on trade. Almost impossible, surely. Well in a strange way, it is happening.

Plenty of editorial ink and political blather has been devoted to Australia cranking up the alliance with the new military basing deal announced during the Obama visit. Less attention is being given to the political and diplomatic meaning of Canberra's embrace of America's trade vision.

TPP Countries encircle the Pacific, though with one large exception. (Map courtesy of DFAT.)

Australia has blithely signed up to a US design for Asia Pacific trade flows which is potentially sweeping, yet also legalistic and discriminatory. And by discriminatory, read this as meaning 'No China'. An Australia that once promised never to do any trade deal that shut out Japan is now happily accelerating towards an agreement that excludes China — and might just shun Japan, too, if Tokyo can't scramble on board.

It is an odd way to be structuring for the Asia Century, yet such are the possible incongruities that attend the effort to build a Trans Pacific Partnership Agreement (TPP).

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The Canberra column

The bayonet conundrum

by Graeme Dobell - 19 December 2011 3:44PM

This column is a taste of a review of three books on humanitarian intervention, which is here at Inside Story.

You can do a lot of things with bayonets, but you can't sit on them. This rumination on the limits of military force has been attributed variously to Talleyrand, Napoleon, Cavour and even Thomas Hardy. Over the last decade in Afghanistan and Iraq, the US has been learning anew what it means.

Just as importantly, though, the international community — especially via the UN — has been grappling with a completely new version of the quandary. Beyond waging war with bayonets, can you also use them to carve out new governments and create peaceful societies?

Call it the bayonet conundrum: what is the point at which to intervene? What is the point of intervention? How sharp should be the point of the bayonet? The conundrum has become as important to the US experience in Afghanistan and Iraq as it has for the UN's understanding of itself and what it can attempt.

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