The curse of cronyism: both sides of the Irish Sea
Two articles over the past few days describe the core of the crisis in the integrity of the political classes.
Now that the bailout of Ireland and her banks is concluded, attention is shifting to focus upon the identities of those who got Ireland into this devastating mess in the first place.
I am indebted to David Gardner in the FT for his excellent analysis in this Saturday’s paper.
He identifies the perennially ruling Fianna Fail party, its senior political figures, light banking regulation, and much more, at the heart of the cronyism and corruption that has marred and mired public life in Ireland and laid waste the nation’s economy and sovereignty.
The Irish Daily Star has published an ‘Iraq war-style’ set of playing cards depicting Ireland’s ‘most wanted’.
Perhaps unsurprisingly, the prize of Ace of Spades goes, not to the country’s leader Brian Cowan, but to Seanie Fitzpatrick, the ex-boss of the Anglo Irish Bank – as of yesterday a wholly owned subsidiary of the Irish State.
As Ireland took off as the Celtic Tiger, privately owned land identified for infrastructure development was never compulsorily purchased, as promised, but was left for property speculators to grow rich upon.
In turn these property men (and they were all men) enjoyed ‘close’ relationships with politicians, bankers, and builders.
One banking source in Dublin told me recently that the core of this band of cronies numbered perhaps 500 people on less.
But whilst we in the UK may be tempted to snigger down our sleeves, we should perhaps mark the latest of our own parliamentary expenses scandal – neatly described in the Telegraph last Friday.
The paper identifies a number ex-Labour MPs who are now filing their expenses claims in the House of Lords and they don’t come cheap. As for the Anglo-Irish bank, who remembers the Scots heyday of RBS and Sir Fred?
The political classes scuttled for the undergrowth when it was revealed what had been going on in the build up to the great crash of 2008. But there was a time when some of the most senior political figures on the UK landscape willingly supped at his corporate table.
Now that the British legislature is sporting a record 831 members in its upper house, is it time to do a little more house cleaning this side of the Irish sea before we cast the first stone in the direction of the band of cronies in Dublin?
Related posts:
- Smoke, fire and banking power
- Capitalism, too big to fail?
- Irish hope: two entrepreneurs on a train
- An insight into young Ireland at the Electric Picnic
- Lord's expenses: the flight to redaction
There are 19 comments on this post
You incorrectly state that Anglo Irish Bank – as of yesterday a wholly owned subsidiary of the Irish State. Anglo Irish has been state owned now since January 2009.
Jon a very interesting blog for many reasons.There is little doubt that there is a smell of corruption in most of our MP’s in both houses , whether it is just on expenses or helping vested interests.However when it comes down to the banks it is smell that is probably destroying the Ozone level.I sit here in Derbyshire and think oh the poor Irish, their politicians have really let them down.Yet ours are no better.They sit raking in unjustified expenses , supposedly running the country,yet seem incapable of it.They can make rediculous ,not needed laws on equality, ethnicity and diversity, yet can not run the economy.They completely ignore the wishes of their electrate ,as on Europe , the human rights act,and yet would have us believe we live in a democracy.
We do not need more laws,we have plenty.We need politicians to forget political dogma and just run the country in the way that those who elected them want.
I believe , that local politicians are just as bad if not worse , but the spotlight has not yet been shone on them
In a Country with a population of 4.5m and a feeling of a big family this was bound to happen. The bags of cash under farmers mattresses; boosted by EU subsidies put the Irish in an excellent position to leverage this “equity” to monstrous levels.
The UK must not forget that a lot of that “Irish” money funded and invested in UK real estate (look at all the apartments/hotels (Bewleys/Jurys Inn etc)). If this house of cards is now not funded by the Irish Tax payer then the whole thing crashes – property prices would collapse both side of the Irish Sea.
Just as well that the tax payers are here and are going to have to slum it for a while. No doubt the property millionaires have moved to sunnier climbs and are enjoying life watching the fuss in the homeland.
ALL banks should be Green Banks and therefor working in the interest of the people, a countries infrastructure and environmentally friendly issues.
500 people or less got Ireland into this mess? It’s 500 families or LESS that our getting this whole planet into a devastating MESS!
adzmundo TVP & Greenpeace
Does it really surpise you to find out that the Irish have done what the English did( and that is meant in the broader sense)by selling off and working in coorperates for financial gain of land and buildings.
To carry on with the mucky business and to make it appear legitimate, lawyers ,surveyors, members of the more covert organisatins; in short those with sway and brass, are required.
This sort of cronyism victimises individuals as the group will have shut cases and continue to walk over the rights of the public.
Jon,
Bravo, a good start on nailing down responsible individuals. Expenses-fiddling MPs must also be identified, though of course the amounts are peanuts compared to the banking ripoff.
However, there is something even more important than the naming of individuals and holding them to legal account and it is this:
Suppose the regulators HAD done their job properly and prevented the credit bubble? The logical conclusion of that is less capital available for consumerism and property. The first would lead to a downturn in the economy and the second an increase in the housing crisis and a growth in landlordism and, later, slum properties.
Thus, the illusion of prosperity would be destroyed. This will produce an even greater political problem since capitalism cannot function without this manipulation of middle class perceptions and its inherent fears of impecunity.
There is no mystery about any of this. We have been here time and time again. Only the surface form changes.
The answer is to be finally rid of capitalism and institute genuine democracy. Anything less means eventual disaster. How many more lessons are needed?
The answer is to be finally rid of capitalism and institute genuine democracy. Anything less means eventual disaster. How many more lessons are needed?
The same old rubbish Philip,The problem is not Capitalism,and if you replace it what are you going to replace it with? Technically you can have democracy under Capitalism,Socialism,Communism or any other –ism you fancy .The problem is lack of controls , regulations and punishments for those who take charge of Capitalist ventures.It is a profit making system that aught to benefit all at a higher level than the alternatives.
As for democracy, i have often advocated true democracy as being the rule of the people by the people for the people.We have nothing like it under the party system of politics.The views of the majority are not sought,not acted upon and infact quite often ignored by our politicians in the misguided belief they know best for us.That alone makes them just as corrupt as the bankers they allow to get away with ruining the economy and many peoples lives
Jon snow in the filed;
Reproting from Stormaont on a cold cold dec night on several occassions in a thick dry claenable suit that he wouldn’t wear onhis bike as it would get ocevered in olil grease;
831 in the Lords! If they all turn up for their subsidised lunch and wine, that would cost the tax payer just short of £250,000 per day in allowances.
And for what? Certainly nothing that couldn’t be done by 100 of the best brains.
Seems that ‘Lady’ Uddin – she of an apparently unlived-in second home – continued to claim expenses even after the inquiry in to this affair started back in 2009 – don’t have link to post, I’m sorry, but almost certainly in the garden. No time for proper response right now but thought snowbloggers might like to view this 5-min video showing one type of action that took place about an hour ago against the stinking financial swamp of the financial-politico complex:
(Inaugural Lecture of the University of Strategic Optimism, in Lloyds Bank, London Bridge: wp.me/p1dbfG-1d).
Saltaire , i agree entirely.It is time the Lords were disbanded.Their Lodships allowed to keep their titles but with no perks or allowances, then a completely elected Lords of around 100 put in place to scrutinise Commons legislation.
Post above should have read ‘Guardian’, not ‘garden’.
Thank you Jon for continuing to champion the need for reform in parliament, if only more news rooms around the UK had better editorial standards we wouldn’t need to concern ourselves over-much about cronyism.
Perhaps we need an entrance exam for membership of the House of Commons or to qualify as a candidate for either house? Admittedly it does seem naive to think an exam can help to reconnect our political class with the rest of the UK, it did at least help drive down the cronyism of the civil service in the 1800s and could be a good starting point for change in the 2000s.
(Though it did thickly gloss other the downside of some “do-good-ers”, Mr Hislop’s programme did provide a fresh perspective on struggles to improve life quality in a free market obsessed world).
“Soft” corruption of politicians, in protecting their business friend’s interests, is part of the reason why Ireland never knew a tiger until recently. Hopefully the crisis will lead to better standards in Ireland.
Jon,
Few people believe this evil nonsense is confined to Britain and Ireland. It is a transnational scam.
The only reason capitalism can continue on its corrupt way is because it continues to manufacture enough lies and propaganda to deceive enough naifs.
A typical example was the recent Martin Durkin extreme right wing lying diatribe on Thursday 18th November on Channel 4. It was subsequently demolished with great articulation by Oliver Huitson at:
http://www.opendemocracy.net/ourkingdom/oliver-huitson/uk-channel-4%E2%80%99s-own-%E2%80%98horror-story%E2%80%99-continues
It isn’t the first time Durkin has tried to pull this kind of disgusting stunt and I daresay it won’t be the last. And of course there are plenty of other examples right across mainstream media – which is of course bought and paid for by the very people engaged in the scam.
So you see, you people at Channel 4 haven’t got an awful lot to be proud of.
Philip your comments and observations would be worthy of note were you to suggest an alternative to Capitalism,but you do not.
Like the students , who are not affected by the proposed education loan increases.They march and create thousands of pounds worth of damage,yet i have not seen them propose an alternative,nor a justification of the costs of repairing their damage, which aught to be loaded onto their current loans.Democracy gives rights to protest and to march , but true democracy also should have responsibilities.Something lost on violent marchers and for that matters strikers who affect the larger public majority
Socialism would b a better system than Capitalism – but I agree with u Adrian . All these isms are useles if there is corruption at the top – and that is waht is happening . To say a totaalitarian state like the Soviet Union was a socialsit state as was said reently is incorrect . I am afarid we humans are prone to nastiness , envy , jealousy – and some even admire those who misuse high office . Well these guys I suppose – those in hight office – have to do waht those who put them there – [The Rich ] told them to do –broadly speaking .One thing I do find amusing – here in ROI anyway – is the religous getting so het up about money . After all they are quick to – many of them to show their homophobia – and quote the ” good book ” on that subject . Well that same book says ” blessed are the poor ”- so what is their problem . Easy – they have no more belief in that garbage than a non believer – . One cannot fool the subconcious and their actions betray them for wha t they are .
UK observations:
Recently, a photographer moved (temporarily) from the Conservative party payroll, to the government payroll. Was this cronyism? – he or she wouldn’t have been the only photographer qualified for the post. And there have been plenty of political appointments by all parties, other than this one.
More generally, attend any course that “helps you find work” and you will be told that 80% of jobs are never advertised, and must be accessed using “networking and personal contacts”. Is this cronyism? Or just fertile ground for cronyism to flourish?
could you list the whole deck of cards regarding the banking crisis?
The FT article is accurate about the corruption of Irish society by FF, but especially the banks, financial institutions, big business and the developers and speculators. Nama is a testament to the corruption FF has engendered in the Irish banking and property markets. As Professor Moragn Kelly observed in an Irish Times article in October 2009, Nama was conceived to be a corrupting institution and Lenihan was debiberately telling untruths from the start. Other economists who dissented from the official line were ignored and scorned simply for putting reasoned and persuasive political discourse on finance minister Lenihan’s monster. The light-touch regulation favoured by FF and its EU apppointee has bankrupted Ireland and brought chaos to the EU and world markets. And all to bail out cheating bankers like Sean Fitzpatrick his ilk. FF are bullies at home and lack the courage to defend Irishpeoples interests at the EU level. In the 1980s the Lenihan’s, O’Rourkes, Cooughlans, Cowan’s destoryed the country; their children have gone one better and have financialy destoryed the country.