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Iceland‘s crowd-sourced constitution killed by parliament

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  • Iceland‘s crowd-sourced constitution killed by parliament

    "In her farewell address, the outgoing Prime Minister, Jóhanna Sigurðardóttir, declared this to be the saddest day of her 35 years in parliament."
    If not even tiny Iceland can get it right, with it's thousand year tradition of law making . . . .

    Iceland‘s crowd-sourced constitution killed by parliament


    Thorvaldur Gylfason

    Following its spectacular plunge from grace in 2008 when its banking system crashed, inflicting huge damage on foreign creditors as well as on local residents, Iceland caught attention for trying to come to grips with what happened by bringing court cases against bankers and others allegedly responsible for the crash as well as for inviting the people of Iceland and its directly elected representatives to draft a new post-crash constitution designed inter alia to reduce the likelihood of another crash.

    Up against the wall, with throngs of protesters boisterously banging their pots and pans in parliament square in Reykjavík, the post-crash government formed in 2009, to its credit, set the process in motion. A National Assembly was convened comprising 950 individuals selected at random from the national registry. Every Icelander 18 years or older had an equal chance of being selected to a seat in the assembly. Next, from a roaster of 522 candidates from all walks of life, 25 representatives were elected by the nation to a Constitutional Assembly to draft a new constitution reflecting the popular will as expressed by the National Assembly. Believe it or not, the Supreme Court, with eight of its nine justices at the time having been appointed by the Independence Party, now disgraced as the main culprit of the crash and in opposition, annulled the Constitutional Assembly election on flimsy and probably also illegal grounds, a unique event. The parliament then decided to appoint the 25 candidates who got the most votes to a Constitutional Council which took four months in 2011, as did the framers of the US constitution in Philadelphia in 1787, to draft and unanimously pass a new constitution. The constitutional bill stipulates, among other things: (a) electoral reform securing ‘one person, one vote’; (b) national ownership of natural resources; (c) direct democracy through national referenda; (d) freedom of information; and (e) environmental protection plus a number of new provisions designed to superimpose a layer of checks and balances on the existing system of semi-presidential parliamentary form of government. The preamble sets the tone: “We, the people of Iceland, wish to create a just society where everyone has a seat at the same table.” The people were invited to contribute to the drafting through the Constitutional Council’s interactive website. Foreign experts on constitutions, e.g. Prof. Jon Elster of Columbia University and Prof. Tom Ginsburg of the University of Chicago, have publicly praised the bill and the democratic way in which it was drafted.

    Even so, it was clear from the outset that strong political forces would seek to undermine the bill. First, there are many politicians who think it is their prerogative and theirs alone to revise the constitution and view the National Assembly and the Constitutional Council elected by the people and appointed by parliament as intruders on their turf. Second, many politicians rightly worry about their reelection prospects under ‘one person, one vote’. Third, many politicians fear losing their clout with more frequent use of national referenda, and also fear exposure under a new freedom of information act. For example, a crucial telephone conversation between the prime minister and the governor of the Central Bank in the days before the crash in 2008 is still being kept secret even if a parliamentary committee has demanded to hear a recording of it. Last but not least, many vessel owners dislike the prospect of being deprived of their privileged and hugely profitable access to the common-property fishing grounds. As a matter of public record after the crash, politicians and political parties were handsomely rewarded by the banks before the crash. It does not take a rocket scientist to figure out that vessel owners must have likewise treated politicians and political parties generously in the past, an umbilical cord that many politicians clearly want to preserve.

    In sum, it was clear that in a secret ballot the constitutional bill would never have had a chance of being adopted by parliament, not even after the national referendum on the bill on 20 October 2012 where 67% of the electorate expressed their support for the bill as well as for its main individual provisions, including national ownership of natural resources (83% said Yes), direct democracy (73% said Yes), and ‘one person, one vote’ (67% said Yes). But the parliament does not vote in secret. In fact, 32 out of 63 members of parliament were induced by an e-mail campaign organized by ordinary citizens to declare that they supported the bill and wanted to adopt it now. Despite these public declarations, however, the bill was not brought to a vote in the parliament, a heinous betrayal – and probably also an illegal act committed with impunity by the president of the parliament. Rather, the parliament decided to disrespect its own publicly declared will as well as the popular will as expressed in the national referendum by putting the bill on ice and, to add insult to injury, hastily requiring 2/3 of parliament plus 40% of the popular vote to approve any change in the constitution in the next parliament, meaning that at least 80% voter turnout would be required for a constitutional reform to be accepted in the next session of parliament. The politicians apparently paid no heed to the fact that under these rules Iceland’s separation from Denmark would not have been accepted in the referendum of 1918. In practice, this means that we are back to square one as intended by the enemies of the new constitution. There is faint hope that the new parliament will respect the will of the people if the outgoing one failed to do so despite its promises. In her farewell address, the outgoing Prime Minister, Jóhanna Sigurðardóttir, declared this to be the saddest day of her 35 years in parliament.
    Justice is the cornerstone of the world

  • #2
    Re: Iceland‘s crowd-sourced constitution killed by parliament

    Here is some background, from Gylfason's previous articles at VOXEU, and a few others.

    (Don't miss the last one.)

    Understanding Iceland, could this be a model for much larger countries?

    An Icelandic politician's most important attribute is being a poet (Snorri)
    That has been true for a thousand years.



    Constitution making in action: The case of Iceland
    Thorvaldur Gylfason, 1 November 2012

    Iceland is in the middle of a major constitutional overhaul. This column looks at the unorthodox use of a referendum in drafting the constitution and argues that this democratic element could lead to its long-term success.
    . . .

    Perhaps Iceland's new crowdsourced constitutional bill from 2011 ought to have contained such provisions, but it does not (Gylfason 2012a). Without them, the bill was thought to contain sweeping enough provisions, not least the one defining natural resources not in private ownership as the property of the nation stating that “government authorities may grant permits for the use or utilisation of resources or other limited public goods against full consideration and for a reasonable period of time.”

    Why 'full'? Why not 'fair'? The reason is because 'fair' would have amounted to a constitutionally protected rebate to vessel owners and others who use the nation’s resources and also because the clause on property rights stipulates that: “No one may be obliged to surrender his property unless required by the public interest. Such a measure requires permission by law, and full compensation shall be paid.” Hence, without 'full' consideration in the natural resource clause, the bill would have featured an element of unconstitutional discrimination among owners of private property and owners of public property. The natural resource clause addresses one of the most contentious political issues in Iceland over the past 30 years or longer. It was felt that taking on the banks as well in the same round, with Ecuador as the sole existing precedent, could prove counterproductive.

    . . .

    Constitutional endurance

    “Without a reform of the Constitution, there is no future possible,” said the president of the Spanish Constitutional Court in 2009. Constitutions do wear out if they fail to anticipate social, economic, and political change. Around the world, nations routinely change their constitutions, every 19 years on average (Elkins, Ginsburg, and Melton 2009). Thomas Jefferson would not have been surprised. In a remarkably prescient 1789 letter to James Madison, Jefferson wrote that “Every constitution ... naturally expires at the end of 19 years” because “the earth belongs always to the living generation.” On the basis of its textual elements, taking into account its various provisions, Elkins, Ginsburg, and Melton (2012) predict that the new Icelandic constitution, if ratified, will last 60 years, adding that “drafting the right text has been found to be surprisingly important for constitutional mortality”. They conclude by declaring the bill to “be at the cutting edge of ensuring public participation in ongoing governance, a feature that we argue has contributed to constitutional endurance in other countries.”

    __________________________________________________ _______


    Iceland Court Sentences Ex-Byr Savings Executives to Jail
    http://www.bloomberg.com/news/2012-0...s-to-jail.html
    Byr Savings Bank former Chairman Jon Thorsteinn Jonsson and the lender’s ex-Chief Executive Officer Ragnar Zophonias Gudjonsson were today found guilty of fraud and sentenced to four and half years in prison by Iceland’s Supreme Court.
    The court found that the two former executives had used their positions at Byr to grant an 800-million kronur ($6.2 million) loan to Exeter Holdings ehf in 2008 as Iceland’s financial system was on the brink of collapse.
    Proceeds of the loan were used by Exeter to buy Jonsson’s and Gudjonsson’s shares in Byr. Exeter guaranteed the loan by putting the Byr shares up as collateral.
    “In deciding the punishment” the Supreme Court took account of the fact that the “magnitude of the offences was significant,” according to the ruling posted on the Reykjavik- based court’s website. Jonsson’s action “relieved him from personal guarantees on loans” and Gudjonsson’s “infraction was committed under the auspices of his mandate” as Byr’s chief executive officer, according to the ruling.

    __________________________________________________ _______


    Iceland's President Explains Why The World Needs To Rethink Its Addiction To Finance
    . . .
    But once I had analyzed every aspect of it, it boiled to the fundamental choice of the interest of the financial market on one hand, and the democratic will of the people on the other, and rarely in history -- but it does happen -- do we come to such crossroads that we are forced to choose.
    And my answer was clearly, not only with respect to the democratic structure of Iceland, but also with respect to Europe’s contribution to the world. What is our primary legacy to countries and nations in modern times? Is the European democracy the right of the people? Capitalistic financial markets can exist in many other parts of the world, even without democracy. So in my opinion, Europe is and should be more about democracy than about financial markets. Based with this choice, it was in the end, clear that I had to choose democracy.
    . . .


    __________________________________________________ _______



    Finance and constitutions
    Thorvaldur Gylfason
    11 April 2012

    Most economists would agree that the global financial and economic crisis was at least partly caused by a failure in the regulation of the financial sector. While regulatory reform is now being debated throughout the world, critics argue that it is only a matter of time before any new regulations are removed by powerful interest groups. This column asks whether prompt corrective action belongs in constitutions.

    . . .

    . . . it is common practice around the world to specify – in the constitution – the division of responsibility and power among the three main branches of government – along with checks and balances. Lawmaking is then tasked with developing specific provisions concerning day-to-day government, including its regulation of banks and other financial institutions.
    The Constitutional Bill before the Icelandic parliament awaiting a national referendum is in this spirit. The bill, passed unanimously on 27 July 2011 by a nationally elected constituent assembly, aims to sharpen the division of power among the legislative, executive, and judicial branches of government.
    . . .



    __________________________________________________ _______


    Iceland: From Crisis to Constitution

    Yves here. I’m intrigued by the way Iceland’s post crisis experience does not get the coverage it warrants. This is a country whose banking system collapsed and its citizens suffered months of real privation (I dimly recall that it was difficult to import medicine, for instance, because no finance more or less means no trade). Yet after a period of serious dislocation, things somehow got sorted out, and with a cleaned up financial system and a much cheaper currency, the Icelandic economy has rebounded nicely.

    One aspect of this housecleaning was writing a new constitution. Its preamble calls for a just society, an idea which seems to be at the core of OccupyWallStreet’s demands: “We, the people of Iceland, wish to create a just society with equal opportunities for everyone.” I think readers will find both the process of developing and ratifying this document as well as its major provisions to be eye-opening. The model for the US Constitution was the Corsican constitution of 1755. Could this Icelandic document also have a disproportionate impact?

    By Thorvaldur Gylfason, Professor of Economics, University of Iceland. Cross posted from VoxEU

    __________________________________________________ ____


    Crowds and constitutions
    Thorvaldur Gylfason
    13 October 2011

    Iceland’s economic meltdown has led to a change in its constitution. This column, by one of the 25 people elected to draft the new document, documents the journey.

    . . .

    The constitutional assembly/council (CAC) assembled by the people and parliament to revise Iceland’s constitution decided to do things differently. The CAC decided to invite the people of Iceland to participate in the drafting of a new constitutional bill on the internet, an arrangement that has attracted considerable interest in foreign media.1 This decision proved advantageous and trouble-free. It was known that ordinary people from all walks of life were interested in – or even passionate about –seeing the constitution revised. Otherwise, 522 people would hardly have run for the 25 seats in the constitutional assembly.2 The election campaign, if campaign is the right word, was exceptionally civilised, and quite different from parliamentary campaigns. Hardly any advertising took place nor did any significant amounts of money change hands; in fact, most of the candidates did little or nothing to promote their candidacy apart from posting articles or blogs on the internet. The media, including state television and radio, did little to inform the electorate. The political parties did not field candidates, perhaps in part because the main opposition parties were firmly against the project from the start. Interest organisations did not field or openly support any candidates.

    __________________________________________________ ________________


    Icelandic Showerheads Rule!
    Eric Raymond

    . . .

    Despite minor changes in spoken pronunciation, written Icelandic remains a deeply conservative, even archaic language. Icelandic schoolchildren of today can read without effort transcriptions of manuscripts nearly a thousand years old. The persistence of saga literature is both a cause and a consequence of this conservatism.

    Another consequence of Icelandic's archaism is that, to an Icelander used to its grammatical complexities, modern Scandinavian tongues and English sound rather like nursery talk or a crude pidgin language. It's not easy to get one to admit this, however.

    . . .

    We're part of a convoy of three jeeps. We're headed towards the Þingvellir, the thousand-year-old meeting place of the Icelandic Althing or popular assembly. The landscape around us is moorlands so barren they're almost a cold desert. Rugged snow-marbled mountains ring the horizon, and plumes of steam vented from the ubiquitous hot springs drift over gnarled lava flows. The only green in this landscape is the lichen on the rocks — but our driver, Einar, tells us that this is an unusually mild winter; the roads are clear, and the snow is only patchy.

    The Þingvellir itself sits on one edge of a crack in the world. Where the Mid-Atlantic ridge runs roughly northeast-southwest through Iceland, there's a three- or four-mile-wide rift valley wedged between the European and American tectonic plates. We can see clear across it from the overlook point; some steep-gabled houses built on the flat floor of the rift valley give a sense of scale to the scene.

    Off to one side is the fabled Law Rock, the place where the legal code of viking-era Iceland was recited twice a year by the law-speakers, whose job it was to commit the entirety of it to memory. It was here that some of the most famous scenes in the sagas took place, and here that the last pagan law-speaker made the famous remark that "If the law is split, the people will be split" just before his regrettable decision to accept the Christianization of Iceland.
    Last edited by cobben; April 06, 2013, 02:30 PM.
    Justice is the cornerstone of the world

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