title: Fromm’s humanism and child poverty: Neoliberal construction of the ‘have-not’

authors: Tulloch, Lynley

subjects: critical theory

abstract: Children are particularly vulnerable to structured inequalities in society. Building on the work of Erich Fromm (1900–1980), this article contends that modern (post)industrial capitalism corrupts the human capacity to operate in the ‘being mode’—that is, in altruistic and compassionate ways. Rather, within the individualistic logic of the ‘having’ mode of existence there are morally empty spaces where children become objectified, separated from caring communities, dominated and measured. The second part of this article will discuss these insights in relation to the significant impact of neoliberal regimes on children’s social and physical wellbeing. In particular, it is argued that from the mid-1980s in New Zealand, the restructuring of the welfare state in line with neoliberal ideology has increased the vulnerability of young children to poverty and related issues. The narrow conception of poverty that is integral to the ‘having’ mode of existence merely serves to justify the ruling ideological neoliberal consensus. It is argued that any genuine attempt at human progress and the elimination of poverty needs to operate outside of this logic.

text: Fromm’s humanism and child poverty: Neoliberal construction of the ‘have-not’ Children are particularly vulnerable to structured inequalities in society. Building on the work of Erich Fromm (1900–1980), this article contends that modern (post)industrial capitalism corrupts the human capacity to operate in the ‘being mode’—that is, in altruistic and compassionate ways. Rather, within the individualistic logic of the ‘having’ mode of existence there are morally empty spaces where children become objectified, separated from caring communities, dominated and measured. The second part of this article will discuss these insights in relation to the significant impact of neoliberal regimes on children’s social and physical wellbeing. In particular, it is argued that from the mid-1980s in New Zealand, the restructuring of the welfare state in line with neoliberal ideology has increased the vulnerability of young children to poverty and related issues. The narrow conception of poverty that is integral to the ‘having’ mode of existence merely serves to justify the ruling ideological neoliberal consensus. It is argued that any genuine attempt at human progress and the elimination of poverty needs to operate outside of this logic.

year: 2015

title: Credit Loss Dynamics in Australasian Banking

authors: Hess, Kurt

subjects: Credit risk

abstract: The purpose of this thesis is to analyze the drivers and dynamics of credit losses in Australasian banking over an extended period of time in order to improve the means by which financial institutions manage their credit risks and regulatory bodies safeguard the stability and integrity of the financial system.
The analysis is based on a specially constructed data base of credit loss and provisioning data retrieved from original financial reports published by Australian and New Zealand banks. The observation period covers 1980 to 2005, starting at the time when such information was published for the first time in bank financial statements. It moreover covers the time of major crises which occurred in both Australia and New Zealand in the late 1980s and early 1990s.
The heterogeneity of reporting the data both amongst banks and through time requires the development of a reporting typology which allows data extraction with equivalent informational content. As a thorough study of credit risks requires long data series often not available from third party data providers, the method developed here will provide value to a range of researchers.
Based on an evaluation of many alternative proxies which track a bank's credit loss experience (CLE), the thesis proposes a preferred model for impaired assets expense (as % of loans) as dependent variable, mainly because of its timely nature and good data availability. Explanatory variables include aggregate macro variables of which changes in unemployment and the return in the share markets are found to have the most significant influence on a bank's credit losses. Bank-specific control variables include a pre-provision earnings proxy whose significance points to the use of provisions for the purpose of income smoothing by Australasian banks. The model also controls for size and nature of lending as smaller, retail-oriented housing lenders, on average, exhibit lower loan losses. Clear results are found with regard to the effect of rapid expansion which appears to be followed by a surge of bad debt provisions 2 to 3 years later. Moreover, inefficient banks tend to suffer greater credit losses.
An important part of the thesis looks at the characteristics of alternative CLE proxies such as stock of provisions, impaired assets and write-offs which have been used by earlier literature. Estimating the preferred model with such alternative CLE parameters confirms their peculiarities such as the memory character of stock of provisions and the delayed nature of write-offs. These measures correlate rather poorly amongst themselves which calls for caution in the comparative interpretation of earlier studies that use differing CLE proxies.

text: Credit Loss Dynamics in Australasian Banking The purpose of this thesis is to analyze the drivers and dynamics of credit losses in Australasian banking over an extended period of time in order to improve the means by which financial institutions manage their credit risks and regulatory bodies safeguard the stability and integrity of the financial system.
The analysis is based on a specially constructed data base of credit loss and provisioning data retrieved from original financial reports published by Australian and New Zealand banks. The observation period covers 1980 to 2005, starting at the time when such information was published for the first time in bank financial statements. It moreover covers the time of major crises which occurred in both Australia and New Zealand in the late 1980s and early 1990s.
The heterogeneity of reporting the data both amongst banks and through time requires the development of a reporting typology which allows data extraction with equivalent informational content. As a thorough study of credit risks requires long data series often not available from third party data providers, the method developed here will provide value to a range of researchers.
Based on an evaluation of many alternative proxies which track a bank's credit loss experience (CLE), the thesis proposes a preferred model for impaired assets expense (as % of loans) as dependent variable, mainly because of its timely nature and good data availability. Explanatory variables include aggregate macro variables of which changes in unemployment and the return in the share markets are found to have the most significant influence on a bank's credit losses. Bank-specific control variables include a pre-provision earnings proxy whose significance points to the use of provisions for the purpose of income smoothing by Australasian banks. The model also controls for size and nature of lending as smaller, retail-oriented housing lenders, on average, exhibit lower loan losses. Clear results are found with regard to the effect of rapid expansion which appears to be followed by a surge of bad debt provisions 2 to 3 years later. Moreover, inefficient banks tend to suffer greater credit losses.
An important part of the thesis looks at the characteristics of alternative CLE proxies such as stock of provisions, impaired assets and write-offs which have been used by earlier literature. Estimating the preferred model with such alternative CLE parameters confirms their peculiarities such as the memory character of stock of provisions and the delayed nature of write-offs. These measures correlate rather poorly amongst themselves which calls for caution in the comparative interpretation of earlier studies that use differing CLE proxies.

year: 2008

title: A critical interruption in the governance of a New Zealand state high school

authors: L'Huillier, Barbara Marie

subjects: governance

abstract: The governance of contemporary Western education aspires to serve the intertwining values of human emancipation and social inclusiveness in both the organisational form of educational institutions and their pedagogical direction. In New Zealand (NZ), what is understood as ‘good’ governance of education has varied over time according to economic conditions and political interests. The fourth Labour government (1984-1990), which undertook a widespread, rapid commitment to neo-liberal principles, reorganised the provision and governance of education along quasi public-private sector lines, explicitly using a business approach to guide practice, yet retaining hegemonic characteristics. This commitment to neo-liberal principles has been continued by all subsequent NZ governments. The intended transformation of the education system from a centrally-governed bureaucracy to a community-governed process has not been easy. Underpinning the new governance regime is an implied notion that school communities share a common understanding of what is meant by education, processes of representation, and of ‘good’ governance. However, due to the different aspirations members of school communities’ can hold for their respective schools this commonality of meaning can be a false dichotomy resulting in schools being governed in a state of tension. This tension serves to highlight contradictions and disconnections between the espoused aims of devolved governance and a State-mandated process that works to exclude certain factions of a school community. Increasing numbers of NZ school Boards of Trustees are experiencing these tensions and contradictions resulting in an interruption in school governance. The interruption I am interested in takes the form of the commodification of education that has been taking place in NZ since the mid 1980s. I argue this to be an interruption with profound effects on both the flourishing of individuals and the cohesion of communities and usefully serves to draw attention to the disconnection between the broad ideals of education, as articulated by the early promoters of a State-funded education system, and the neo-liberal re-visioning of State education. Fairfield College is a NZ State high school where the tensions and contradictions surrounding the meaning of education, processes of representation, and of good governance have generated a crisis resulting in a critical interruption in school governance. The school’s Board of Trustees received considerable media coverage between 2008 and 2009 regarding a critical interruption to their governance. This interruption presented a unique research opportunity to explore how the words used to frame the problems facing the Board of Trustees, the words used to explain and justify State intervention in the governance of the school, and the words used to propose solutions to perceived problems were invested with meaning. With my interest in connotative meaning, I illustrate how these words were used to encourage and endorse actions that comply with prevailing public policy. In this case study I examined how the school’s direction has been reconfigured according to the principles of corporate governance using a companion lexicon of business. Directives have been devised by various NZ governments to align education with the neo-liberal principles that have prevailed in the governance of this country since 1984. The multiple meanings attributed to ‘governance’ and ‘corporate governance’ in the relevant literatures, and the various implications for applied governance processes and dynamics, influenced my decision to adopt the dual orientation of social constructionism and critical theory to underpin this research. Social constructionists focus on how individuals and groups produce, disseminate, and validate their perceptions of reality. Critical theorists aim to create awareness of constraints to emancipatory potential and inclusiveness. They seek to expose the contradictions between espoused aims of justice and the flourishing of individuals and that which is practised, with the intention to contribute to changes that would enhance justice and the flourishing of individuals. One such contribution is to give voice to those who feel their voices are not being heard. Both theoretical schools regard the use of language as pivotal in the construction of social processes in which meaning is continually negotiated and re-negotiated by the stakeholders. In this research I engaged in audio-recorded semi-structured interviews with members from four stakeholder groups involved in the governance of Fairfield College: the Whānau Support Group (a predominantly Māori special interest group), parents and caregivers, teachers, and those previously or currently charged with governance responsibilities for the school. These narratives were then analysed using thematic analysis to provide important insights into how ‘governance’ of the school was interpreted, challenged, and/or endorsed. My research at Fairfield College indicates that the different constructions of ‘governance’ are associated with identifiable overlapping issues arranged in a hierarchy. The foundational tier represents the outcome of various NZ governments’ preference for market-generated principles of organisation at a macro State level, namely the commodification of public services – in this instance education. The middle tier addresses concerns raised by some stakeholders regarding their notion of inclusiveness and the vulnerability of the democratic process as experienced at community level. The top tier encompasses the twin issues of communication and consultation processes at a management level that appear to demonstrate a conflict between the State’s espoused principles of good governance and their application at Fairfield College. As a result of examining the critical interruption to the governance of Fairfield College I conclude that when viewed through the lens of a social constructionist orientation informed by critical theory, ‘governance’ in the education sector can be interpreted as a process supporting neo-liberal preferences for market-orientated approaches to education. Such preferences overshadow any other ideals held by members of the school’s community and, according to a critical understanding of neo-liberalism, weaken the principles of emancipation and inclusiveness. The insights generated from this research provide a basis for further research into the governance of other organisations with emancipatory and inclusive aspirations.

text: A critical interruption in the governance of a New Zealand state high school The governance of contemporary Western education aspires to serve the intertwining values of human emancipation and social inclusiveness in both the organisational form of educational institutions and their pedagogical direction. In New Zealand (NZ), what is understood as ‘good’ governance of education has varied over time according to economic conditions and political interests. The fourth Labour government (1984-1990), which undertook a widespread, rapid commitment to neo-liberal principles, reorganised the provision and governance of education along quasi public-private sector lines, explicitly using a business approach to guide practice, yet retaining hegemonic characteristics. This commitment to neo-liberal principles has been continued by all subsequent NZ governments. The intended transformation of the education system from a centrally-governed bureaucracy to a community-governed process has not been easy. Underpinning the new governance regime is an implied notion that school communities share a common understanding of what is meant by education, processes of representation, and of ‘good’ governance. However, due to the different aspirations members of school communities’ can hold for their respective schools this commonality of meaning can be a false dichotomy resulting in schools being governed in a state of tension. This tension serves to highlight contradictions and disconnections between the espoused aims of devolved governance and a State-mandated process that works to exclude certain factions of a school community. Increasing numbers of NZ school Boards of Trustees are experiencing these tensions and contradictions resulting in an interruption in school governance. The interruption I am interested in takes the form of the commodification of education that has been taking place in NZ since the mid 1980s. I argue this to be an interruption with profound effects on both the flourishing of individuals and the cohesion of communities and usefully serves to draw attention to the disconnection between the broad ideals of education, as articulated by the early promoters of a State-funded education system, and the neo-liberal re-visioning of State education. Fairfield College is a NZ State high school where the tensions and contradictions surrounding the meaning of education, processes of representation, and of good governance have generated a crisis resulting in a critical interruption in school governance. The school’s Board of Trustees received considerable media coverage between 2008 and 2009 regarding a critical interruption to their governance. This interruption presented a unique research opportunity to explore how the words used to frame the problems facing the Board of Trustees, the words used to explain and justify State intervention in the governance of the school, and the words used to propose solutions to perceived problems were invested with meaning. With my interest in connotative meaning, I illustrate how these words were used to encourage and endorse actions that comply with prevailing public policy. In this case study I examined how the school’s direction has been reconfigured according to the principles of corporate governance using a companion lexicon of business. Directives have been devised by various NZ governments to align education with the neo-liberal principles that have prevailed in the governance of this country since 1984. The multiple meanings attributed to ‘governance’ and ‘corporate governance’ in the relevant literatures, and the various implications for applied governance processes and dynamics, influenced my decision to adopt the dual orientation of social constructionism and critical theory to underpin this research. Social constructionists focus on how individuals and groups produce, disseminate, and validate their perceptions of reality. Critical theorists aim to create awareness of constraints to emancipatory potential and inclusiveness. They seek to expose the contradictions between espoused aims of justice and the flourishing of individuals and that which is practised, with the intention to contribute to changes that would enhance justice and the flourishing of individuals. One such contribution is to give voice to those who feel their voices are not being heard. Both theoretical schools regard the use of language as pivotal in the construction of social processes in which meaning is continually negotiated and re-negotiated by the stakeholders. In this research I engaged in audio-recorded semi-structured interviews with members from four stakeholder groups involved in the governance of Fairfield College: the Whānau Support Group (a predominantly Māori special interest group), parents and caregivers, teachers, and those previously or currently charged with governance responsibilities for the school. These narratives were then analysed using thematic analysis to provide important insights into how ‘governance’ of the school was interpreted, challenged, and/or endorsed. My research at Fairfield College indicates that the different constructions of ‘governance’ are associated with identifiable overlapping issues arranged in a hierarchy. The foundational tier represents the outcome of various NZ governments’ preference for market-generated principles of organisation at a macro State level, namely the commodification of public services – in this instance education. The middle tier addresses concerns raised by some stakeholders regarding their notion of inclusiveness and the vulnerability of the democratic process as experienced at community level. The top tier encompasses the twin issues of communication and consultation processes at a management level that appear to demonstrate a conflict between the State’s espoused principles of good governance and their application at Fairfield College. As a result of examining the critical interruption to the governance of Fairfield College I conclude that when viewed through the lens of a social constructionist orientation informed by critical theory, ‘governance’ in the education sector can be interpreted as a process supporting neo-liberal preferences for market-orientated approaches to education. Such preferences overshadow any other ideals held by members of the school’s community and, according to a critical understanding of neo-liberalism, weaken the principles of emancipation and inclusiveness. The insights generated from this research provide a basis for further research into the governance of other organisations with emancipatory and inclusive aspirations.

year: 2011