The new buccaneers

A curious piece, tongue-in-cheek, but neat, in a recent edition of The Economist.

‘Mr Johnson understood intuitively that the financial crisis had ended the neoliberal consensus…No mere Trumpian wrecking ball he is trying to reshape globalisation in the mould of Britain’s buccaneering maritime past, rather than in the European Union’s bureaucratic pettifoggery.’

Buccaneering. How do you ‘buccaneer’ these days?

Container ships could be the new buccaneers. Where once we had tea clippers and cargo ships. We’ll need a bit of the old aggression, against Chinese and indeed the Americans if we’re to capture markets, and of course against our old friends, the Europeans. Piracy would help. Conquest shouldn’t be ruled out.

Or if that’s beyond us, overseas markets will least welcome a bit of the old imperial chutzpah. It will be as if we’d never been away.

The EU’s ‘bureaucratic pettifoggery’. But isn’t it what successful free trade requires, a bit of pettifoggery? Small print. A few regulations, so we’re all on the same page. In olden times, we wrote our own. It was easier then. (Yes, regulations need to be reined it: it was always thus.)

You need the high seas and a big reach if you’re to buccaneer. But ‘big reach’, also known as globalisation, isn’t really that fashionable at the moment, beyond our shores. Buy American is the watchword over the pond. China is focusing more on its internal market, and on its Belt and Road for which there’s no equivalent here in the West. China on its doorstep bludgeons with overwhelming economic power. We negotiate as best we can.

We had our own strong internal market, just twenty miles away over the Channel, twenty-eight countries strong, but we gave it up, and put stop-gaps and confusion in its place. And hide our confusion with hyperbole.

Liz Truss’s article on the Politico website back in March is a fine example. A few quotes:

‘We will work together to reshape the rules of global trade to reflect our core values…The U.K.’s values-driven policy has already delivered successes in trade negotiations….Just as free trade made the U.K. great in the 19th century, we can be even greater still in the 21st by becoming a global hub for services and digital trade.’

We’re back to being … buccaneers. And nowadays the world’s awash with buccaneers. We could find ourselves with brief spells of comparative advantage, where we outperform our rivals, or corner a niche in the market, only to find we’re overtaken as other countries seek to build advantage for themselves in the same areas, which could be digital, medical or services. As a mature economy we specialise at the high end. As other economies mature, so will they.

Free trade in the highly fluid modern world can’t remotely be compared with the 19th century as a driver of community prosperity. That was built on certainty, and the confidence born of certainty, and it was even then a long, rocky, risky and highly uncertain road. Politics in the wrong hands deals in simplicities. History hits you hard with a reminder of just how extraordinarily complex is the reality.

Strong communities and long supply lines can be a poor mix, with little connection between businesses tucked away in business parks and nearby towns and villages. Community in its widest sense requires shorter, more guaranteed lines of supply, with industries which can sell strongly into local markets, or into UK-wide markets, or indeed into EU-wide markets. We need a different and wiser mindset, which focuses in developing our UK and European markets, and which, while promoting trade with China, Japan, India and the ASEAN countries, avoids obsession.

We’ve also had Johnson’s 15th July ‘levelling up’ speech.

‘We are turning this country into a science superpower, doubling public investment in R and D to £22 billion and we want to use that lead to trigger more private sector investment and to level up across the country so that we have hubs or research and innovation like the one we are in today which is actually driving battery technology.’

All this is admirable. But is this government competent to deliver? Have we any reason save their bluster to believe them? Our best hope lies in the local mayors of cities lie Manchester, Birmingham and Bristol, also Teesside. Labour and Tory – they do have the competence.

We simply have the wrong people in power to get close to addressing, let alone solving, the issues of our time. We’ve over the last twenty years seen the disappearance of men and women of calibre from our politics. Johnson has ensured that the old high-calibre politicians won’t touch his party. On the other side, Corbyn didn’t help. The way back isn’t proving easy.

Making the case for silence

Zen is about silence. No soap box required.

I want to call out for silence – to call, not shout. Nothing comes of shouting, rabble rousing, name-calling – only further division, and the defeat of reason. We have too much shouting out there. Endless Brexit arguments and silence aren’t easy companions.

Silence is something we can all share, all people and all persuasions, all races and religions … silence makes no demands, it is there if you wish to find it …. silence leaves he or she who shouts loud out in the cold … it gives space to think and consider, has little time for short cuts and easy solutions.

I remember my son being disciplined by the school librarian for telling the librarian to shut up because her continued calls of silence were breaking his concentration.

You can’t command silence.

But silence is unexciting. Why not follow the pied piper? Or he or she who shouts loudest?

Shouting divides. With the European elections around the corner we find ourselves more polarised than ever.  ‘We are the people.’ The 52%. But what did we vote for? Brexit at any price? Remain also has its ranters. Shouting embeds ideas, good, on occasion, usually bad.

Reasoned argument is beyond ideology, beyond ‘big’ ideas, beyond assumptions. Reasoned argument requires silence. A prayer before we start. OK, unfashionable. It doesn’t have to be a prayer. But silence. Time to reflect. And, maybe, he who is most eager to speak should go last. Or speak not at all.

But that’s as maybe…

We’re faced with big subjects, big themes – with globalisation (which is ironically the natural and only outcome of a ‘free trade’ position), on the one hand, and the sense, and the reality, of being left behind by elites, by the big cities, the bankers, even by the younger generation, on the other. Pay is pegged back, annual increments a rarity, austerity has for many been brutal.

‘There is a real question about whether democratic capitalism is working, when it’s only working for part of the population.’ The words of Nobel-winning economist Angus Deaton. Could the country be at a tipping point?

More than ever, we need to step back. We need silence. An end to shouting. Instead we need engagement, close engagement, with all the areas I mention above – engagement across Europe and not just in this country. That’s been our role in the past, and I see no reason to give up on that now.

In the recent past many of us have been too cautious, too reasonable – too slow. Silence has been a negative state. A place we retreat to. A place to hide. (We treat elites as somehow inevitable. We shrug and get on with life.)

I’ve found the last three years one hell of a challenge. (I am not alone of course.) The sense that there’s a continuity between my private world and the wider political world out there has been broken. Extremes and wild ideas have become common currency. If I acquiesced in a too-slow change of pace before, I can no longer do so now.

Silence has to be more positive, more active, more pro-active. More political.

But it must still be silence. Paring back the rush of ideas, allowing quiet space in between, that space which anger and emotion too easily fill. Don’t be fooled by the loudest voice. Or a half-truth in a headline.

There’s wisdom, a real wisdom, in silence. If wisdom isn’t too unfashionable a term these days.

How many more crisis votes will there be?

More votes last night. Arguing as ever on the wrong territory.

The argument should not be, in any sane polity, ‘should we be part of the EU’, but what form that participation should take. Any organisation pulling together states with disparate backgrounds but shared interests will always be, in one regard or another, close to crisis, but likewise, always be looking to reform and develop itself. The EU is an ongoing project.

The UK is aiming to put ourselves outside that process. Without any other body with whom we could engage, which could act as a substitute. Not the old Commonwealth, or (God forbid) the USA. And at a time when ‘a new pattern in world commerce is becoming clearer’ (The Economist).

A key aspect of the slowdown (‘cross-border investment, trade, bank loans and supply chains have all be shrinking or stagnating relative to world GDP’) over the last ten years in globalisation is the increasing focus on more regionally focused trade, as wages rise and market size increases in developing countries. (‘Supply chains are focusing closer to home.’) Containerisation brought about a radical reduction in transportation costs, but that was effectively a one-off. Distance adds cost, and takes out of the equation just-in-time availability. Brexit is intended to take us in the diametrically opposite direction, trading with more distant, less reliable partners, over long distances with slower supply chains, and at the same time putting up barriers and souring relationships with our local hitherto partners.

And so to yesterday’s series of votes in the House of Commons, where attempts to delay the Brexit process to allow parliament more time to discuss alternative options, to avoid a hard Brexit, were all voted down, and instead a Tory amendment passed, backing a renegotiated version of the agreement with the EU – a renegotiation of the Northern Ireland backstop, which the EU has made it abundantly clear it is not willing to renegotiate.

It is hoped – assumed – imagined – that the EU will cave in, wishing to avoid the damage that a hard Brexit would cause to the EU as well as the UK. Having seen that there is a majority in the UK parliament for some kind of an agreement, the EU would find a way to circumvent the Irish border issue. There is a reported lack of unanimity among the leaders of individual countries: true or not I can’t say. But if the continuance of an open border is crucial to the EU and specifically to Ireland, I (and the mass ranks of commentators out there) can’t see how there can be any agreement which fails to guarantee absolutely that an open border will remain in place indefinitely. There is a patent absurdity here.

I may be wrong – maybe the EU will find a way to trim and compromise, with a show of politeness, and withholding their scorn in any public utterances. One way or the other, we will be back again in the House of Commons in two weeks’ time, for more votes. The assumption must be that the May agreement would again be voted on,  unchanged, in its current unamended form, and again be thrown out. Or May will pre-empt that by proposing some kind of Customs Union, backing down from one of her original red lines, those hostages to fortune she put up so foolishly shortly after she became prime minister.

She is meeting today with Jeremy Corbyn, who now says he is prepared to talk with her. Maybe he wants to explore how and when such a change of policy on the government’s part might occur, and in what circumstances the Labour Party, and Labour MPs, might support it. He will know now that he is not likely to bring the government down. When it comes to the crunch Tory MPs, even the moderates such as Dominic Grieve and Anna Soubry, will always rally to the flag.

Being a Tory MP, which requires a certain mindset, local constituency alliances, and a habitual and habituated tolerance of local opinion, instils loyalties which will survive crisis and sometimes override what common sense dictates. (Labour loyalties also run deep, but aren’t so tribal.)

That’s my take on current events, on what will come out of last night’s more ordered than usual chaos.

I’ll be away in the Southern Hemisphere, far from the madding crowd, when the next vote, or series of votes, come around. There will probably be a snow-capped volcano on the other side of the lake when I draw back the curtain the morning after. They are always the best kind.

Where now with globalisation?

31st May, Hay book festival, and a talk by Cambridge lecturer (in public policy), Finbarr Livesey (billed as a conversation with Andy Fryers) on the subject of Livesey’s new book: From Global to Local’.

The subtitle carries quite a punch: ‘The Making of Things and the End of Globalisation.’

Is globalisation the only paradigm, is hyper-globalisation inevitable? Livesey argues powerfully against this thesis. An archetypal example of globalisation is the development almost by accident of the shipping container by a US trucking magnate in the 1950s. And the biggest downside is the level of emissions produced by moving product around the world, primarily by sea.

Major developments are underway which are changing this, 3D printing, with books being produced almost to order being one classic and small-scale example.

Robotics scale down the labour requirement, factories in China with vast labour forces will no longer dominate the production process as they have for the last twenty years.

How we make the journey from idea and design to finished item is being radically reconceptualised. Adidas already make running shoes bespoke to your exact requirement. The Finnish bike maker Jopo brought manufacturing back home to Finland when they realised that their quality standards were more easily and more cheaply met back home. Zara work to a tight timescale which requires local not Far Eastern production. Amazon are even looking at the possibilities of making some products en route to the customer. (Quite how this would work I don’t know!)

In the light of Trump’s withdrawal from the Paris Agreement (yesterday, 2nd June), a comment by Livesey on the agreement is put into even sharper focus: ‘As countries commit to harder, binding targets for emissions reductions, the ideas of reuse, remanufacturing, circularity and zero waste will all gain more currency and increase the uptake of ideas across industry.’ China and the EU have come together to condemn Trump. Put that also in the context of the statement two days ago from the EU’s climate commissioner, Miguel Arias Cañete: ‘The EU and China are joining forces to forge ahead on the implementation of the Paris agreement and accelerate the global transition to clean energy.’

Where is the UK in this?

Trump may briefly be taking the USA out of the loop, but the ideas mentioned by Livesey are ideas that could make up the substance of the closer cooperation, between EU and China, plus India, Canada, and most other countries, in the years and decades to come.

Circularity: ideas for making refurbishing reusing, sharing, zero waste, minimising emissions, avoiding landfill… against traditional linear notions of take, make, dispose. The straight line to landfill against the closed loop of reuse. There are, as Livesey is only too well aware, only signs of this at the moment, but bringing production back home is a vital first step. And there’s the example of IKEA, which has moved from ideas such as sustainable sourcing to offering buybacks and creating markets for second-hand IKEA furniture. Nike has stated it wants to double its business while halving its environmental impact: a recent Nike report states that ‘the future will be circular.’

I’ve only touched on themes here. It is early days, but Livesey outlines as I see it an attainable future, more climate-friendly and one which would be underpinned by countries working together: supply chains much more local than at present, and sharing to the benefit of consumers, businesses and countries as an economic reality.