Global Justice and the Future of Hope

Rajesh Makwana

Image © Niklas Sjöblom

Would it be easier to create a sustainable global economy if the world more closely resembled the demographics and geography of Iceland – a volcanic island with a manageably small population and a unique abundance of renewable energy? This was among the many questions raised during a panel discussion at Tipping Point Film Fund’s UK premier of Future of Hope, often referred to as the Iceland documentary.

Since the Nordic country experienced the systemic failure of its entire banking sector in 2008, a number of Iceland’s senior banking executives have been arrested, sacked or sued. Grass roots organisations, including the Ministry of Ideas that was featured in the film, have since hosted a National Assembly of unprecedented scale. The government-backed Assembly was designed to focus specifically on the nation’s next steps; to agree on a set of collective values and to establish a clear vision for how to rebuild their economy from the ashes of the old. While the film did not focus on the Assembly itself, progressives would not be surprised by its outcome: participants emphasised the importance of robust public services, establishing an environmentally responsible and sustainable economy, and ensuring equality and transparency in the country’s future renaissance.

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Master Storytellers

Seamus Peter Johnstone Macleod

Image © Saul Gordillo

It is argued that Scottish nationalism under the stewardship of the SNP has come of age. Gone are invocations of the spirit of William Wallace or Robert the Bruce. Less frequent too are references to the barbarity of Margaret Thatcher’s rule without mandate. It is said that romanticism has been replaced with a clear-minded pragmatism. The dominant narrative north of the border is that Scotland’s prosperity would be ensured and increased if it were free to pursue its own economic and political goals, free of control from Westminster.

There is much that supports elements of this account.  The SNP succeeded in presenting a convincing case that a pro-Europe, foreign investment friendly, socially conscious, independent Scotland would constitute a cause for monetary celebration. And it’s not all bluster. Mr Salmond’s high profile publicity trips to the Middle East and China, ostensibly securing bilateral trade and investment ties, are backed up by solid figures that show that foreign money has been flowing into Scotland – at a relatively steady rate – since 2002. The SNP’s dream to follow Ireland’s example of prosperity through low corporation tax, a skilled workforce, and modern infrastructure attractive to multinational companies cannot be discounted merely due to the unfortunate end that met that arc of prosperity. SNP ministers are more likely to be found quoting economic statistics than Rabbie Burns these days.

Scott Hill has rightly pointed out that it is the unionist side that now appear to be the champions of sentimentality and myth. Claims that “we are stronger together” sound hollow and are mostly unsupported by the rationality that appears to colour the rhetoric of the SNP. Melanie Philips does her cause no favours by perpetuating the false notion that Scotland receives a sizeable windfall from taxpayers elsewhere in the UK. Though the truth of this matter depends on which year or years of data are considered and what proportion of North Sea oil is considered to be Scotland’s, it is not the case that Scottish citizens would lose significant funds through independence. Equally, the notion that Scotland would have been bankrupted by having to independently bail out RBS during the credit crunch are grounded more in fiction than in fact. Joint bailouts by groups of states did take place during 2008 and this would likely have happened in the case of RBS given its sizeable presence south of the border. Read more of this post

Hold Fire on the ‘Scottish Defence Force’

Jevon Whitby

Image © Andrew Higgins

This week saw Scottish First Minister Alex Salmond announce his ideal plan for a ‘Scottish Defence Force,’ should Scotland vote to become independent. Under the currently very vague plans, Scotland would retain one base of each type for a total strength of 20,000 Scottish troops. In acquiring control of a segment of the UK’s current military, Scotland would have control over its engagement, but would become a NATO ‘ally,’ rather than member.

For the SNP, Westminster control is an issue of pride, but more realistically: employment. The Scottish defence ‘community’ is set to rise by as much as 20,000 over the next eight years as British personnel are brought back from bases in Germany, many to Scottish bases.

Coalition attempts to cut the defence budget by an alleged 74% in Scotland with ‘massive and disproportionate’ effects in July promoted an angry resistance campaign, with Salmond arguing that Scotland’s geographic position and economic problems should give it extra protection when it comes to cutting the defence budget. Read more of this post

Executive pay: we need to think beyond money

Five Minute Economist

Image © Herry Lawford

The main political parties have achieved near-consensus that something needs to be done about executive pay. There is an argument that Government has no role in this area, and that private firms, with all their incentives to seek greater profits are the ones best-placed to design pay schemes that work. Except that they are apparently not very good at doing just that. There is a growing body of research that shows that the link between pay and performance is simply not clear-cut. Studies by psychologists such as Dan Ariely have in fact shown that paying people to do things often makes a task less enjoyable and makes them spend less effort on it. 
So, we have a problem. If pay and performance aren’t so closely linked after all, then many firms simply aren’t properly incentivising the best people for the job to do the best job they can. It means that firms are likely to have higher costs, which feed into higher consumer prices, for no extra benefit. We aren’t putting resources to their best possible use because we aren’t getting the performance we are paying for. Read more of this post

Guest Blog: The Archbishop of Canterbury: Labour’s best politician

Nikhil Venkatesh

Image © Scott Gunn

Read this:

The most pressing question we now face, we might well say, is who and where we are as a society. Bonds have been broken, trust abused and lost. Whether it is an urban rioter mindlessly burning down a small shop that serves his community, or a speculator turning his back on the question of who bears the ultimate cost for his acquisitive adventures in the virtual reality of today’s financial world, the picture is of atoms spinning apart in the dark.

Now compare it with this:

Those at the top and the bottom, who were not showing responsibility and were shirking their duties. From bankers who caused the global financial crisis to some of those on benefits who were abusing the system because they could work – but didn’t.

Believe it or not, these two passages were created by two different people: one by Rt. Hon. Edward Miliband MP, the other by Most Revd. Rt. Hon. Dr. Rowan Williams, the Archbishop of Canterbury. The first is from the cleric’s recent Christmas sermon, whilst the second is taken from the Labour leader’s speech on ‘responsibility’ in June.

From the similarity of these two statements, it is obvious that Williams and Miliband share an analysis of the problems in Britain’s society – a lack of morality in both our upper- and under-class. They both make use of the powerful image of unscrupulous bankers being bailed out by the taxpayer, as the feckless poor scrounge the rest of our money for benefit payments, or the post-riots clear up.

You may think that that is where the similarities end. They both see the same problem, but surely the Ed would recommend its solution by social democracy and responsible capitalism, whereas the good Dr. Williams will prescribe a healthy dose of (preferably Anglican) God-fearing! Well, not quite. Williams does, naturally, talk about God in his sermon, but the words he uses to describe the need for an established religion could easily be interpreted in a more secular fashion:

If the question ‘where are you?’ or ‘who are you?’ were being asked, not only individual citizens of Britain but the whole social order could have [in the time of the King James bible] replied, ‘Here we are, speaking together – to recognize our failures and our ideals, to recognize that the story of the Bible is our story, to ask together for strength to live and act together in faithfulness, fairness, pity and generosity.

Now, if you remove the obvious biblical reference, the core idea – that all classes of  Britons need to be united behind shared values, and co-operate with each other – is not a million miles away from the ‘Blue Labour’ ideal of a Labour party promoting more nationalist, conservative values, and eschewing over-competitive capitalism in favour of corporatism and co-operatives. Whilst the Archbishop wants a united Britain ‘in faithfulness, fairness, pity and generosity,’ Maurice Glasman, in founding Blue Labour, called for ‘a new politics of reciprocity, mutuality and solidarity.’

Ed Miliband (like me) is not a fully paid-up Blue Labour-ite. Glasman’s controversial views on immigration, trade unions and education are far too right-wing for most party activists. However, he has been described as Miliband’s ‘guru,’ and his appointment as a peer very deliberately showed Glasman’s growing importance within Labour.

So the bishops and the opposition are in general agreement. Furthermore, Rowan Williams has spoken out about his dislike of the Coalition Government; in June, he went further in criticising public spending cuts than Miliband has dared. In the short-term, this was bad for Labour – Miliband was shown up as being impotent, and cowardly, over-shadowed by a softly-spoken bearded vicar.
However, might Williams’ all but explicit support become an asset for Labour? In my view, it will, for two reasons. Firstly, Church leaders can say things that politicians cannot – they can talk about morals without being accused of hypocrisy or paternalism, for example. In Miliband’s case, he is even more restricted than most MPs; the nickname ‘Red Ed’ still seems to haunt him, and he dares not discuss leftist policies for fear of it coming back. Archbishops, precisely because they are by definition establishment figures, can propose more radical solutions without being labelled as revolutionary. Miliband could hope that Williams’s support for these policies will ‘detoxify’ them – if that quiet, greying priest believes in them, how can they be dangerous?

The second point is that Williams can reach people that Miliband (and every Labour leader save Blair) never could. The Anglican communion, in Britain at least, is filled by middle-class, elderly social conservatives; these are precisely the people that tune out (or worse) whenever Miliband appears, and just as importantly, they are people that can be counted upon to vote. A Daily Mail article suggested that atheistic Miliband’s ‘laissez-faire attitude to religion might play well with today’s faithless youth,’ but this hold vice versa: Rowan Williams’ piety is sure to help convert the old and old-fashioned to social democracy.

In short, Dr. Williams is a new Tony Blair – charismatic, devout, upper-middle class and trusted by ‘Middle England.’ He may be just what Ed Miliband needs.

Originally posted here on The Collected Thoughts of a Pretentious Teenager.

Winter of Discontent: Labour isn’t working

Dominic Turner

Image © Murdo Macleod

As we enter 2012, we have a Government perceived as out of touch and elitist, ramming through a failing, unpopular, and treacherous economic agenda. The government has been mired in phone hacking scandals, rising unemployment, outbreaks of riots in the capital, and the likely prospect of another recession in the new year. The very least that one expects in the midst of such a storm is that the sails of the opposition might be filled. But as we enter 2012, the Tory Party has once again regained the lead in most opinion polls. Because of the media’s pathetic obsession with the intrigues of party political gamesmanship, this coalition is not judged by the ideal but by the alternative and the established alternative, the Labour Party, is proving woefully feeble at standing up to coalition.

The public remember that 13 years of Labour weren’t substantially different than what came before or after it. People remember Peter Mandelson proclaiming that Labour was “intensely relaxed about people getting filthy rich.” They remember Blair and Brown praying at the altar of Rupert Murdoch and the rest of the right wing, corporatist ilk that is laughably called the ‘free press.’ They remember the butchery of Basra, the folly of Afghanistan, and the Prime Minister of this country following a neo-con cowboy into wars of oil and treasure. The killing abroad was coupled with the repression of civil liberties at home, with the government attempting to impose mandatory ID cards on the population, and the eradication of ‘habeas corpus.’ They remember PFI, tuition fees, the introduction of the profit motive into the NHS, all of which lay the groundwork for the Coalition’s malevolent schemes. But most of all, they remember it was a Labour government who increased the gap between the rich and poor and instituted the biggest transfer of wealth from the needy to the greedy with the bank bailout, to be paid off by cuts to public services.

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Winter of Discontent: Occupy London should demand greater competition

Five Minute Economist

Image © Andy Roberts

The Occupy London protests are now two months old and still going strong and have established a “Bank of Ideas” in an empty building belonging to UBS. Nice idea. The Occupy protests do have an important message so it is unfortunate that, so far, its main victim has been accidental – the Church of England, which descended into confusion over whether any of the protesters had valid points to make, and if so, did it justify the fact that they were making it difficult to get to the St Paul’s Cathedral gift and coffee shop?

Initial criticism centred around the fact that the protesters’ aims have been vague. According to their website, they are “in agreement that the current system is undemocratic and unjust.” More specific grievances are listed under their “initial statement”, and among other things include: Read more of this post

Queen of Shops reports to the King of our ailing economy

Georgia Lewis

Image © Department of Business, Innovation, and Skills

In the midst of news reports about bumper retail sales in the lead-up to Christmas, albeit thanks largely to heavy discounting, and upsetting stories of people getting into debt in order to have a very materialistic Christmas, Mary Portas released her report on how to save Britain’s high streets. It was a curious mixture of the occasional sensible suggestion and ideas that don’t really take the big picture into account.

Local authorities using discretionary powers to give new businesses concessions on their rates makes sense. Exploring disincentives to prevent landlords leaving shops vacant makes sense. Proactive use of compulsory purchase orders on long-term vacant shops makes sense. Making banks that own empty shops manage them properly or sell them makes sense too.

But other recommendations are, frankly, a little silly. Would removing “unnecessary regulations” so that anyone can trade on the high street unless there is a valid reason not to result in the revival of lively market towns or would high streets attract tat sellers so that our towns will start to resemble an EastEnders street scene? Read more of this post

London or Brussels? Ça ne fait rien

Dominic Turner

Image © harry_nl

In the week that David Cameron returned from Brussels, posturing as the protector of Britain, what is most distressing, albeit predictable, is the reaction of the establishment ‘left.’



Make no mistake, the binary calculus in David Cameron’s mind was: who controls Britain’s economic policy? Bankers in Frankfurt or the bankers in London who bankroll his party? He chose the neighbourhood bully.



But there does exist a Pan-European Austerity agenda. An insane, centralising elite in the death throes of Europe’s most right wing regimes, striking whilst the iron is hot, before the voters of their respective countries throw them out of office. The brazen arrogance of the plutocratic elite of Europe is exhibited in countries like Italy and Greece who are no longer just practically run by the banks (like the UK) but literally governed by ex-bankers who are exacting savage cuts on ordinary people, the receipt for their own bail out. 

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The Real George Osborne

The series has been commissioned by anti-poverty campaigners, the World
Development Movement, ahead of a vote on regulation of food speculation by
banks in the European Union. The group wants George to “do the right
thing” and back effective regulation of food speculation, which drives up
food prices beyond the reach of the world’s poorest people — and has also
added nearly £200 onto UK households’ food bills in the past year.

http://www.therealgeorgeosborne.com/

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