National Referendum: A Sad Day For Democracy in Iceland

March 5th, 20109:41 am @

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National Referendum: A Sad Day For Democracy in Iceland

Tomorrow is the first national referendum Icelandic citizens have been allowed to participate in by the political elite since the conception of the republic in 1944. By all measures, this should be a happy day for democracy in Iceland.

But instead it is not a cause for celebration but a large milestone in the farcical power play which has taken place between the four largest political movements in Iceland since 1944.

Yes, a farce. “Isn‘t that what this whole thing really is”, asked a Dutch journalist yesterday after surveying the scene? It is a sad day.

The media has a lot to answer for

The media has a lot to answer for. Instead of allowing people like law professor Bryndis Hlodversdottir and political science professor Svanur Kristjansson to explain to the nation why this isn’t good democracy, the media has instead handed the microphones to red-faced, unbalanced Sigmundur David Gunnlaugsson, chairman of the Progressive Party whose political career has revolved around kicking up as much mess as possible around IceSave. It makes for a better TV than a balanced approach and it creates pressure on the government he opposes.

In his wake you can see the pressure group InDefence whose members include Progressive Party players and someone who was recently kicked out of the Central Bank for bypassing the currency restrictions which are supposed to be holding our economy together. And the rabble rousers from the Independence Party who are glad the spotlight isn’t on them.

Why isn’t the referendum good democracy? Well, the question is useless as there is a better offer on the table. The information to make an enligthened decision have not been easily available. And the consequences of a yes or a no are unknown. And how do you vote on whether your nation should pay its debts or not? Of course nobody wants to pay. But that is what three governments have now promised Holland and the UK that we are going to do. The rest is just details, isn’t it? And we can argue endlessly over details can’t we? Did the government or the opposition ever tell us what their goals were regarding payment terms, interest rates and such? What exactly is an agreeable agreement to Iceland?

So far, no details have been good enough for the opposition, which includes the Independence Party who would have agreed to a less favorable agreement a long time ago if only they were still in government. And to some people it seems like any deal is a bad deal because then the spotlight will turn towards other matters?  Could it be that Iceland’s enemies are not abroad, in Amsterdam or London but actually in Reykjavik, Blonduos and Akureyri? So far, the problem hasn’t been about Iceland’s democratically elected government not reaching an agreement with the UK and Holland. It has been about not reaching an agreement with the opposition. The opposition, coupled with a few Left Greens who think that Iceland’s future as a self sustainable country in the vein of Cuba is viable, has stalled, filibustered, argued and kicked up a storm at every turn. Some academics have suggested that every month stalled has cost Iceland 70 billion ISK or so, a large chunk of IceSave. Are the small details really worth it or are more sinister forces at work here?

For the opposition’s part, the longer this thing drags out the more turmoil there will be in Icelandic society. And who will the voters blame? Well, of course the people in government. And then the way is clear for the opposition to resume power. And don’t think for a minute that they would not try to negotiate with the Brits and the Dutch.

Olafur Ragnar Grimsson. The cheerleader of the business-vikings who raped and plundered Iceland. (Finnish president Halonen not included)

The political elite has a lot to answer for

The political elite  has a lot to answer for. Olafur Ragnar Grimsson, a lame duck president, paralyzed by his constant smooching with the money-men of yesterday, has suddenly turned the tables somehow to making some foreign journalists believe that he is at the forefront of a fight against capitalism. Don’t be fooled. It was just about his own legacy, and the trouble the four parties have created by constantly refusing constitutional reform which would sharpen his role and responsibilities. They never did because they don’t want to limit their own powers. It is a diabolic merry-go round.

The people have a lot to answer for

The people have a lot to answer for. We have voted for bad politicians and we have voted for a bad system. And we have been fooled into all sorts of bad positions because we are hapless joiners who too easily take sides with demagogues and snake-oil salesmen to easily. The mob has allowed the political elite to maintain its grip on society. Recently it has mindlessly signed petitions for InDefence and Thjodarhagur, honked horns with a slightly facist New Iceland and gathered at an Anthill for a Nation’s Meeting without asking who is behind all these groups and what is their purpose. And now it will flock towards a referendum where one of the options is out of the question, and in many cases not having a clue what they are voting for. Iceland not paying any debts. Count them in.

So what will happen tomorrow? A big no vote of course. And what does it mean? Some people think it is a message of some sort which will improve the negotiating position of Iceland. But really?

Three likely scenarios

a) The government keeps going and attempts to find a solution with the UK and Holland on the grounds that “people are against paying these debts”. Why would the UK and Holland see that as an argument? Those countries can wait. The IMF loans could wait as well. The government is backed into a corner and has little options but to resign.

b)  The government keeps going and attempts to find a solution with the UK and Holland on which the opposition can agree to. Which is unlikely, because the opposition can wait until things are so tight that it can assume power on a wave of discontent.

c) The government resigns. The current opposition resumes negotiations and quickly finds an “acceptable deal” with minor adjustments which they will take credit for. The new opposition kicks up a storm. Then what? A new national referendum on that deal?

Bjarni Benediktsson and Sigmundur D. Gunnlaugsson. Opposition party leaders and billionaires.

It is really a whole big mess. And it does not make one proud of being an Icelander. What is currently taking place in Iceland has nothing to do with democracy. It is cold hard realism which has everything to do with power and money.  Consider who is leading the opposition. Two, middle aged men who have become filthy rich through the cosy relationship between politics and business in the last few decades. They want people to think that this is about democracy, independence, justice and standing up to the man.

And the real enemy within escapes the attention meanwhile and grows stronger from the strife.

It is a sad day. The first national referendum of the republic since its beginnings and it is for the political elite, by the political elite and benefits the political elite. There could have been so many other more apt matters and issues for the nation to deliberate on, the fishing quota system, support for the war in Iraq, constitutional reform. But no, instead we get this farce.

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  3. National Referendum: Icelandic Reaction
  4. The National Referendum: Not About IceSave
  5. No Vote In IceSave Referendum