The Neoliberal Creep - Part 2

While Part 1 dealt with the neoliberal agenda influencing Bill Morneau's retraction of his pharmacare promise, today's post deals with that same influence, this time on Canada's 'evolving' position on foreign aid.

International Development Minister Marie-Claude Bibeau says she wants to use the new $2 billion in extra aid dollars in the new budget to attract insurance and pension funds to invest in fight against global poverty.

Bibeau said her priority is going after wealthy private-sector investors, because governments can’t provide the level of spending needed to do development in a world where conflicts are lasting longer and displacing people for decades at a time.

Given the aversion too many people have to taxes and government expenditures, on the surface this proposal would seem to spread out the costs of doing good. A win-win situation, right?

Maybe. Maybe not.

The need for foreign aid is beyond question, both for the well-being of the recipient countries and the security of the larger world. Those who are suffering and disenfranchised today are the recruits for terrorist organization tomorrow. However, if improving the well being of those in the targeted countries is the overall goal, one has to ask a fundamental question: Is private investment the best vehicle by which to accomplish it?

Private investors, whether institutional or individual, are seeking a decent return on their money. If the goal of foreign aid is better the recipients' lives, how, exactly, is entering into partnerships with pension and insurance funds going to accomplish that? Unfortunately, Ms. Claude-Bibeau leaves that question unanswered. Perhaps she felt that given most Canadians' shallow engagement on public policy, simply making an announcement on cost-saving measures would satisfy them. But the key question to ask is whether or not the goals of private profit and foreign aid are compatible.

A report by the OECD-DAC sheds some much-needed light on this issue:


As you can see in the above, the first unspoken 'rule' is that 70% of the private investor's funds are guaranteed against loss. Guranteed by whom? The taxpayer, of course.

But surely that is not enough to attract such investment. There must also be the prospect of earning a healthy return on investment. And therein lies the tension and potential conflict between development and private sector goals. A 2013 study into the American experience with PPPs (Public-Private Partnerships) may shed some light:

Some development officials are concerned that opportunities to access private resources through partnerships can pull mission staff away from established country plan priorities. The availability of private funding, they argue, is hard to ignore, even when a proposed partnership does not fit well within an established mission priority. Given very limited staff resources at many USAID missions, the opportunity cost of following through on PPPs that are not necessarily aligned with stated mission priorities can be high.

In other words, the prospect of 'free money' can subvert a government's development goals.

There is a host of other problems associated with these partnerships, including overlooking needier countries in favour of more-developed ones so as to provide greater opportunities for the private sector to profit. This issue and many more you read about in the above report.

Will Canadian go blindly into this brave new world of foreign aid PPPs? Given the decidedly neoliberal bent of the Trudeau government, I think that is a distinct possibility.

Canada, and its foreign-aid recipients, deserve much, much better than this.

A Species Under Indictment

The species: the human race. The charge: depraved indifference.

Watch the following to see for yourself whether conviction is a forgone conclusion:


If you would like to learn more about this ubiquitous problem, click here for a good primer.

A Heedless Nation

One of our much-vaunted attributes as a species is our resilience. Our ability to recover from trauma, tragedy and setbacks is the stuff of legend. People devastated by wildfires rebuild; parents who lose a child to disease, accident or mayhem have another child; widows and widowers carry on with their lives; even crippling injury and maiming is not enough to stop us from looking forward to a better day.

Sometimes, however, that resilience and adaptability can work against us. I believe that is what is occurring under the presidency of Donald Trump. The Orange Ogre seems to have redefined what is acceptable or, at the very least, tolerable, in public life. Forget his serial philandering, his outright and ongoing mendacity, and his manifest unfitness for office, all of which, in an earlier time, would have provoked strong reaction and demands for remediation. Perhaps because Trump came from reality programming, and the United States, now more than ever in its history, subsists on a diet of illusion and false promise, it appears that widespread condemnation over what he does or does not do is largely absent, a 'perk of office' that his predecessor, Obama, did not enjoy.

Consider the following report, which begins at the 7:52 mark, and then ask yourself this question: If times were normal, what logical conclusion would most draw about Donald Trump vis-à-vis Russia?

The Grand Plan of Obfuscation: A Guest Post

In response to Saturday's post about the increasing momentum of the neoliberal creep evident in the Trudeau government, frequent commentator BM offered his detailed take on this sorry situation:

It's all part of the Grand Plan of Obfuscation.

Put in a haphazard system of Pharmacare, so that no citizen knows what is covered and by whom. Allow the private sector like Morneau Sheppell to set up systems to track every citizen to make sure they're covered by the eclectic mix of public and private schemes for pills, because it's so complicated, and thus skim off management fees for their "services".

Big Pharma rejoices. Not having a national scheme means nobody is going to bargain for cheap pill prices on a national scale. So drug prices stay high, and the financial corporatists skim off the cream for services rendered tracking all the mush with ZERO value-added for anyone but themselves. All the public has to do is pay over the odds for all the shenanigans, while the politicians issue glib statements as to how they've helped everyone. It'll all cost more overall than what we have now, you can be sure.

Then, at Bay Street banquets, the corporatists will toast each other as to how well they sold the citizenry that piece of goods. The talking will of course be in business code and jargon, the obfuscation of our age. Financial mags will feature glowing articles on how some "genius" spotted a service "missing" from the "market", and worked out a scheme to profit from it. All hail a new "business" Titan! And if you believe all that guff, you'll believe the BS from corporate media on war reporting too.

These business people strike me as the lowest of human life forms, sucking and siphoning money into their pockets from the masses, while maintaining what they have helped society out, but in reality being parasites on the body politic. There is no shame left for those people. They believe their own lies, and act all patrician like Morneau, a man so apparently ill-informed and dim-witted, he'd never heard of business divestiture for holding public office, or if he had, regarded himself as so honest, ethics policies simply didn't apply to him.

Does anyone trust Bell and their ripoff cell phone and cable/internet plans? How about the banks? - Nah, they don't try and flog useless services to little old ladies over the phone, do they? Upstanding corporate citizens, the lot of 'em. The execs claim the moral high ground - "That's not our company policy!" Meanwhile, they incentivize middle management with bonuses to get more and more business, and leave that rapacious class to work out the details on the QT, while issuing highly moral company "policy", and tut-tutting their lowest-ranked employees' behaviour. Then doing bugger all to change things. It's all utter and complete bollocks from beginning to end.

Is anyone honest these days? I find precious little evidence of it. Everyone is trying to rip off everyone else just to make a living. It didn't use to be so obviously bent. But big business with the federal government in their pockets seem intent on ruining the ethics of the average citizen by lying, innuendo and complex ripoff schemes like National Pharma, and allowing it to be just obvious enough that we all turn into scheming thieves ourselves because it's the norm. You can't trust anyone these days - we're all stealthily trained to be greedy. Everyone is out for their own advantage.

A population ruined like this has no empathy, couldn't care less about anyone else, and if you expect them to really care about the environment, well good luck. Thus the brain dead cheer lower "taxes" as if it were some sort of universal truism, and society gradually turns into sh*t, with no hope of altruism whatsoever.

Star Readers Are Not Impressed

Star readers can spot a corrupt policy process when they see one, an acuity they make known as they opine on Bill Morneau's pharmacare plans:

Morneau’s unwise decision to backtrack pharmacare, Walkom, March 2

Every parent knows this: If you aren’t really going to take your kids to the zoo, don’t mention it at all.

When we heard details included in the Liberal’s budget this week, we were delighted. That evening’s conversation around our dining-room table with our adult children was animated and optimistic. One of the most exciting elements in the budget was the announcement of the government’s commitment to pharmacare.

Then, came Finance Minister Bill Morneau’s near-immediate dialing back: not a “plan” exactly, more of a “strategy,” and other weasely sounding words. What a colossal disappointment.

I reluctantly excused the Liberal’s backtrack from their promise to reform our electoral system. Please don’t let the pharmacare “promise” go the same way. We need to hear their clarification and recommitment — and soon. Just be straight with us. Are we going to the zoo or aren’t we?

Jeannie Mackintosh, St. Catherines, Ont.

I was even encouraged by the enlistment of former Ontario health minister Eric Hoskins, whose provincial government recently implemented a long-overdue pharmacare program, albeit one only covering residents under age 25. It was a start and I hoped that coverage would increase eventually to provide coverage for all.

My feelings of elation and hope were soon dashed when Finance Minister Bill Morneau announced it wouldn’t be universal but would amount to a patchwork of coverage, with some people included in the government plan and others not.

This is unacceptable. We don’t need some mish-mash of a program. Let’s do it right and make a universal plan and, as the research indicated, the overall cost to health care should see a reduction. Perhaps Australia’s government could advise how best to meet this goal.

Norah Downey, Midland, Ont.

Drug-policy experts were stunned. Canada is the only advanced country with a medicare system that lacks pharmacare. Canadians spend so much on drugs because we don’t have a pharmacare program: drug prices are too high and too many intermediaries like insurance companies and benefit consultants drain money from the system.

Morneau’s approach would leave all that waste in place. The obstacle is that every dollar wasted is somebody’s income and the affected industries — drug manufacturers, drug insurers and drug benefits managers — fight back.

The minister effectively pointed to a potential conflict of interest and then restricted the mandate of the advisory council. I hope the minister will step back and let the council do its work.

Kim Jarvi, Toronto

The Neoliberal Creep - An Update

I'm not sure what I find more offensive. Is it the fact that Bill Morneau, despite all that he has said about his limited vision regarding pharmacare, is apparently lying when he now says he is open to all ideas regarding a national drug-coverage program? Or is it that he holds the Canadian people in such contempt that he thinks we are either too stupid or too inattentive to see through his dissembling?

Finance Minister Bill Morneau now says he’s “agnostic” on proposals for a pharmacare plan after criticism that he was trying to dial back ambitions for a new program to ensure Canadians get the prescription drugs they need.

Morneau said Friday that he’s not seeking to prejudge the outcome of a newly created advisory council that will be looking at the idea or dampen the scope of their recommendations.

“What’s really clear to us is we need to get expert advice on how to do this best,” Morneau said during a visit to Montreal to discuss the budget measures.

What might account for his faux 'come to Jesus' reversal? Could it be that he has outraged influential groups?

... the Canadian Federation of Nurses, Canadian Doctors for Medicare and the Canadian Labour Congress [have written] an open letter to Prime Minister Justin Trudeau demanding Morneau be removed from the file.

They said Morneau has already decided it will not be a universal “plan” that covers all workers — to the detriment of Canadians, and the benefit of insurance and pharmaceutical companies, and, they suggested, Morneau Shepell.

They said it contradicts “overwhelming evidence” on the need for a universal program and undermines the work of Hoskins’ council before it begins.

“It is our hope that insurance industry and pharmaceutical industry interests will not play a role in the implementation of universal public pharmacare,” the letter to Trudeau stated.

Some will say we should not prejudge the process, and that we must give Morneau and his team a chance to get things right. To take such a position, in my view, would be to harbor a political naivete that I am incapable of.

More realistic, to me, is to see the truth of this entire charade, the truth made known when Mr. Morneau, in a moment of carelessness, let his mask slip, revealing what lies beneath - a living, breathing, neoliberal creep.

The Neoliberal Creep

The above title epitomizes both the direction of the entire Trudeau government and the character of specific high-profile individuals within it, most notably Finance Minister Bill Morneau and International Development Minister Marie-Claude Bibeau. The latter two are using their offices, not to promote the public good, but to do the bidding of their corporate masters.



Let's start with Morneau and what has to be one of the most rapid turnarounds/reversals I have ever witnessed in politics. On Monday, I was delighted to learn that Ontario Health Minister Eric Hoskins had resigned his post to head an Ottawa study into pharmacare, a universal program covering drug costs for all, a feature of all countries with universal health care save Canada. Then, less than two days later, Morneau 'clarified' his intention (doubtless after hearing from the pharmaceutical and private insurance companies) that

a new national pharmacare program will be "fiscally responsible" and designed to fill in gaps, not provide prescription drugs for Canadians already covered by existing plans.

Why the walkback/misdirection? Well, part of the allure of real pharmacare is the fact that bulk-buying of drugs means massive savings. This, however, does not sit well with the powerful pharmaceutical industry.

Traditionally, they have threatened to stop manufacturing drugs in jurisdictions that engage aggressively in bulk buying.

Consequently, Morneau is now facing conflict of interest accusations on the pharmacare file.

The Canadian Federation of Nurses, Canadian Doctors for Medicare and the Canadian Labour Congress wrote an open letter to Prime Minister Justin Trudeau demanding Morneau be removed from the file.

They said he has already decided it will not be a universal “plan” that covers all workers, merely a “strategy” to fill in the gaps for those who currently don’t have coverage — to the detriment of Canadians, and the benefit of insurance and pharmaceutical companies, and, they suggested, Morneau Shepell.

They said it contradicts “overwhelming evidence” on the need for a universal program and undermines the work of Hoskins’ council before it begins.


“It is our hope that insurance industry and pharmaceutical industry interests will not play a role in the implementation of universal public pharmacare,” the letter to Trudeau states.

Moneau's cowardice has earned the scorn of The Toronto Star:

...the projected savings that have made comprehensive drug coverage such a popular proposal in policy circles depend in large part upon the program’s universality. Most of the savings created by a pharmacare program would be achieved through the bulk-buying of drugs and the elimination of bureaucracies – potential benefits at least partly forgone by the sort of means-tested approach that Morneau is hinting at.

Morneau doesn’t really mean “fiscally responsible.” He means politically palatable. With no plan to return to a balanced budget, the finance minister wants nothing to do with the inevitable initial costs of such a project, even if avoiding these means forgoing enormous long-term savings.

Increasingly, the Trudeau government is proving itself to be a massive disappointment to progressives in Canada who, unlike some, demand substance, not just the vapid photo-ops that are coming to define this government.

In Part 2, I will look at International Development Minister Marie-Claude Bibeau's plans to cut the private sector in for a piece of the foreign aid action.