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Governments & Governance: Where is the power?

by Steve Baron

(816 words)

[Steve Baron holds a Bachelor of Arts degree in Political Science & Economics. He is a published

author, a regular columnist in various publications throughout NZ, the Founder of Better

Democracy NZ, a former businessman and Waipa Mayoral candidate.]

The world is changingpolitical power is changing. Sovereign governments around the

world are persistently signing their countries up to international agreements, laws and

conventions, usually with the intention to strengthen human rights, improve free trade due

to the increase in global trade, quell armed conflict and to address environmental

concerns. The question for New Zealanders to consider thoughis the government (and

therefore New Zealanders) handing over power to an unknown group of outsiders who

then control our destinies? Is there cause for concern or is this just the way the world is

going and we simply need to jump on for the ride as this international governance is simply

a new process or new method of governing?

There now appears to be a growing disparity in power between governments and

governance. Governments appear to becoming weaker and international governance

much stronger than ever before. Governance is the act of governing but this is not

necessarily the act of the government of a country, such as New Zealand. International

agreements, laws and conventions are growing in stature and often influence governments

who sign up to them. They often take precedence over domestic laws. As prominent New

Zealand journalist, Colin James, once said, In a globalised world international treaties and

rule-making bodies increasingly shape domestic law and constrain domestic legislation

and administration. There are however, many who question the effectiveness of these

international organisations. Even six months after the Asian tsunami disaster in 2004,

many countries had not fully paid the money they had pledged to the United Nations (UN).

The USA had paid 43 per cent, Canada 37 per cent and Australia 20 per cent. The

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International Monetary Fund (IMF) and the World Bank also have their critics. Joseph

Stiglitz, a renowned economist, Nobel Laureate, Chairman of Bill Clinton's Council of

Economic Advisor's and World Bank Chief Economist stated, The IMF prescribed

outmoded, inappropriate, if 'standard' solutions, without considering the effect on the

people in the countries told to follow these policies.Once the New Zealand government signs up to these international agreements, laws and

conventions, it is then obligated to adhere to any subsequent changes that are made in

these agreements. This consequently places significant power in the hands of these

international authorities such as the UN, the IMF, the World Trade Organisation (WTO), the

World Health Organization (WHO) or the World Bank, and citizens are effectively

powerless to stop these decisions. Free trade agreements such as the Trans-Pacific

Partnership Agreement (TPPA) are a concern to some New Zealanders. TPPWatch is agroup of concerned unions, groups and individuals who have organised themselves to

oppose this free trade agreement. This group has taken out advertisements in major

newspapers highlighting their concerns and arguing the TPPA is a threat to New Zealand's

democracy. For example, if New Zealand were to sign up to a free trade agreement with

the USA, this may put pressure on the New Zealand government to remove the power

Pharmac (New Zealand's pharmaceutical management agency) possesses to control the

distribution and importation of medication to New Zealand. Some might argue this would

be a good thing, however the Pharmac scheme has also brought many advantages via

buying power to New Zealanders.

Should citizens have the final say as to whether or not New Zealand becomes aligned with

any international agreements, laws and conventions? Switzerland is an interesting

example in this area. For a long time, the Swiss people refused to agree to become a

member of the UN and still today, refuse to be members of the European Union (EU). The

difference with Switzerland is that before the government can sign up to such agreements,

the country must agree to the decision in a nationwide referendum. Switzerland voted

against joining the EU in December 1992 but has still developed bilateral agreements to

maintain competitiveness. In March 2001, the Swiss people again refused the chance to

start accession negotiations with the EU. It was not until 2002, and after an intense and

controversial debate, that the Swiss people finally agreed to becoming a full member of the

UN in a referendum.

Perhaps even, these international agreements, laws and conventions offer us a

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decentralisation of power and are possibly a real benefit to New Zealanders? Perhaps we

should even embrace them as they may set new standards that are above what our own

government might be prepared to implement? One advantage may be that this

international governance involves a complex group of people and organisations which do

not limit themselves by ideological political beliefs or agendas which are indoctrinated inNew Zealand party politics? Unlike Switzerland, to date there seems to be very little public

demand for citizens to have the final say in such decisions. It will be interesting to see if

this desire grows. It must be said that the desire for direct democracy around the world

seems to be growing.