Search This Blog

Monday, February 11, 2013

Kiwisaver - I want out!

I've become more concerned about my commitment to the Kiwisaver Scheme over the past few months. I've previously written on it regarding the limitation on providers available. I neglected to consider what in fact investment means and how it affects society in general.

We are told by political parties no matter what their ideologue that Kiwi's need to prepare for their retirement. That's true. There are even some parties considering that Kiwisaver become a compulsory scheme. The argument is that its the socially responsible thing to do - invest for your retirement. I disagree. It is wholly irresponsible to compel people to invest or to treat investment itself as somehow for the betterment of society. And I will explain my discontent below. 

Of late, I've been reading and watching a few documentaries on land and resource grabs. This is where foreign investors (either state or private or both collaboratively) buy up vast quantities of arable land in developing countries at dirt cheap prices and develop large scale commercial farms to export food back to wherever the investor pleases.

The theory is that the land is underutilised and who best to develop it than the rich nations that can afford to. Hold up - wtf? Underutilised? This underutilised narrative is simply a way of skipping around the fact that corporates have identified that there are land and resources available for exploitation by capital rich nations.

What's this got to do with Kiwisaver? Well, do you know where your funds are invested? I don't. I know how they are invested but not where....specifically. 

Because of the long term nature of retirement or superannuation investments, whichever you prefer, investments are usually made in projects that have a long term return. Denmark, for instance, invests its superannuation funds in land grabs in Africa. That's right, the Danes super-annuitants are funded by investment schemes designed to rob local communities of their own ability to use the resources they have relied on for generations to sustain their communities. 

So why are land and resource grabs the new flavour? Global food shortage. Another manufactured crisis to legitimise corporate takeover of foreign land and resources. Casting our mind back to the food crisis of 2008 where food became a commodity subject to financial speculating  driving up prices causing some countries to hoard large quantities of food products and sanction exports such as rice which in fact created the illusion of scarcity all to make a profit. It was mostly those in the developing nations who suffered. 

Moving on, the fact that once we opt in to Kiwisaver we are compelled to continue is already hideous on so many levels. I want out. Unless the law changes, I am legally bound to allow my funds to be invested in these land and resource grabs - either directly or indirectly. If I choose to have a cash only fund (I cant recall the specific name of it), my funds sit as capital in the bank. What do banks do when they have capital? They lend. Do I have any control over who the Bank lends to? No. So indirectly, my funds sitting in a bank creates an asset that allows the Bank to make a loan to whomever it chooses even if the loan is intended to invest in one of these land grabs, that I am personally opposed to. 

I was naive, went with the group mentality and signed up for a life sentence of contributing to a system that destroys the livelihoods of other people. But at the end of the day, that was my choice - even if I didn't fully appreciate the consequences of my choice when I signed up. In fact, I was completely financially illiterate, I'm still a novice - but even with the extremely limited understanding I have now, these unintended consequences of my actions are exactly why a compulsory Kiwisaver scheme is unjust.   So compelling a generation or future generations to do this, is abhorrent. There is no responsibility in forcing people to invest, when they cannot be sure what it is that they are investing in and whether it accords to their own values. 

Post Script: I know this is short, and there are probably many flaws, so leave a comment. I may take a while to respond due to a heavy workload but I will reply eventually.