Tag: Philip Hammond

Out on to the Silk Road …

The new Silk Road – will the direction of traffic be primarily east to west, west to east, or both – and who will control the flow?

I’ve posted recently on the subject of history, and how we abuse it. But sometimes we do need the big picture, and I’m thinking here of China President Xi’s $900 million Belt and Road initiative to build a modern-day Silk Road.

History provides a vital context, and a warning.

Forty-six nations attended a gathering in Beijing last weekend. Heads of state from Rusia and Turkey were there, though not from Europe. The EU held back from endorsing a final statement because it didn’t stress ‘transparency and co-ownership’. India argued the scheme is ‘little more than a colonial enterprise [that would leave] debt and broken communities in its wake’.

Philip Hammond attended (not our high-risk foreign secretary, I note), relishing the opportunity for trade deals. In his speech to delegates he argued Britain was a ‘natural partner’ for China. ‘China and the UK have a long and rich trading history…’  Others have commented that the Chinese, remembering the 19th century Opium Wars, and the great British imperial enterprise, might see this ‘natural partnership’ in  different way.

There’s something telling in this sycophancy. Sycophancy comes out of weakness, not strength. The EU holds back, argues from a position of strength. India is rebarbative, confrontational, overstates it – yet there’s truth lurking there. Circumspection has its merits.

Britain in the 16th century set up its own maritime Silk Road, along with the Dutch, Portuguese and (less successfully) the French. The Belt and Road initiative is the land route reasserting itself. The old oceanic skills of Empire will no longer help us. We are one of many, supplicants, out on a western European limb.

There will be many camel trains along the new road, if it develops the way the Chinese wish. We might just be a little lonely. On a camel train, as out on the ocean, there is strength in numbers.

 

Back to Brexit ….

A brief note – in the end not quite as brief as I intended! My reason for this post – to explain why I am not one of those who voted Remain but is now prepared to accept Brexit, to accommodate – accept that the vote has happened, argue we should make the best of it and get on with life.

A few reasons, in no particular order, as they say on Strictly Come Dancing, as follows….

The vote was won on a basis of a false prospectus and false promises. Even now – press headlines pick up James Dyson and Lord Bamford, two of the rare industrialists who supported Brexit.

We are a parliamentary, representative democracy, and we should live and die by that. Not be ruled by plebiscites, which are the first and last resort of populists and demagogues. (We currently have an unelected government, governing to its own and not the 2015 Tory manifesto, and which anticipates pushing Brexit through using the royal prerogative without, if it can help it, reference to parliamentary discussion or vote.)

The European Union is a remarkable institution. Unwieldy, bureaucratic, fractious, but it is the extraordinary coming together of 28 different nations, each passionate about its own interest, but likewise seeing the benefits, after two thousand years of conflict, of coming together. Our efforts should be concentrated on reform not withdrawal. (The EU has been pilloried for its poor handling of the refugee crisis, but I wonder how it could have been handled well, given all the fear and anxieties felt by 28 countries with very different histories. Had here been no EU, how would the crisis have been handled? With any less agony, any less suffering?)

A war which tore Europe and then the world apart ended only seventy years ago, a year before I was born. Before that another war, arguably even more terrible. We’ve had seventy years of peace, unprecedented peace. The EU symbolises and acts out that peace.

As an economic union, despite all the talk it’s a significant success. No serious economist would argue otherwise. Run a business which trades with other European countries, which I’ve done, and you’re aware of all the benefits. The danger is you take them for granted – assume they’d have happened anyway. There are also extraordinary levels of scientific, environmental and cultural collaboration, for which the EU has provided both the mechanism and inspiration.

The EU isn’t restrictive – unless you’re opposed to workplace and environmental rights. And we’re not going to do without the regulations by asserting our independence – if we want to trade with Europe, the regulations are the terms.

Where there is unnecessary red tape we need to be in there, ensuring it’s removed, instead of being passive observers. We are sacrificing engagement, and influence. We’ve used that influence well over the years.

Immigration is a perceived threat – where immigrant numbers are highest we had the highest Remain votes, where they were low the highest Leave votes. A perceived threat – nowhere near the actual threat that much of the press played up. Likewise no evidence that immigration has held wages down. Yes, pressure on schools and housing in certain areas – and the last government singularly failed to recognise that immigration, and other changes in our working lives, must be reflected in improved infrastructure. (Levels of immigration in recent years have been too high – I’m not arguing otherwise – and politically they’re unsustainable at this level. How you handle this while preserving freedom of movement is a mighty challenge, but not remotely a sufficient reason for Brexit.)

Behind immigration lies the identity politics, aligned with nation and race and social group, which we should be fighting every step of the way. Espouse patriotism not separatism. Patriotism based upon British values of openness, tolerance, free speech – and a tradition of welcoming strangers, bringing them into the fold, and letting them benefit our life and culture – blending in as countless immigrants have done before. Likewise refugees – there are limits of course, but our first instinct must be to welcome.

Related to this, the argument that British, the U.K., England, isn’t the country it used to be. The old generational cri de coeur. True, the pace is faster, and the landscape much impaired. But there have been many radical improvements, too easily discounted. As for the negatives –  the EU takes the rap. I may personally be in the old codger bracket, but I’m with the younger, pro-EU generation.

There’s a mood out there, encouraged by the right-wing press, and played along with by the BBC, that somehow it will all work out. In Philip Hammond’s words, there will be bumps in the road. There’s another much more likely scenario where we find ourselves out on a limb, with an agreement which is dictated to us, and which we accept out of necessity. The economic auguries are not good. Put simply, a crisis awaits us.

There is so much else that matters out there in the world which we were just about facing up to, and they’re now on the back burner in terms of government and public attention. Global challenges, new technologies, fundamental changes in our working lives. At home, infrastructure, the NHS – requiring focus and funding when attention is elsewhere.

We have a hugely inflated view of our presence and reputation in the world. We embody as a nation tolerance, free speech, we pioneered modern representative democracy, the world plays many major sports by rules we laid down. But this is Britain as was. Our current behaviour simply alienates.

To end, two further points –

I’ve mentioned openness above. We have always been open to the world, and the danger now is that we shut ourselves off. Look to the past. Seek one-off deals when others work together. Openness is state of mind, and in an atmosphere of fear and apprehension, in great part built up by the media, it is now challenged as never before in my lifetime.

In direct contradiction to Theresa May’s comments, whether we like it or not we are citizens of the world, citizens, along with all our neighbours, of Europe, and citizens of the U.K. My patriotism is undiminished, I’m British to my last breath, but I also share a common humanity  with every man and woman on the planet.

And finally – never imagine that the change you wish for works out as you anticipate.  It will not, and never has. Gut instinct will never provide. A wing and a prayer will never suffice.

I remember one egregiously daft piece imagining a post-Brexit Britain in 2025 by Daniel Hannan in the Telegraph. It was the stuff of dreams, and typified the dream world in which Brexiters exist.

Now isn’t the time to buckle under.

The Foreign Secretary wobbles …

One final post before I put this blog to rest for a week or two – I’ll be on a retreat and, I trust, out of touch with the world!

My starting point this time: Bronwen Maddox’s interview (before an audience of 250 within the Foreign Office) with Philip Hammond, the Foreign Secretary, in the March edition of Prospect.  Richard Dawkins was, curiously, in the audience. Not always a favourite – his views on religion aren’t mine (though I read his books!) but on this occasion he pinned Hammond beautifully.

Dawkins: “On something as important as Europe why hand it over to the British people.’ (How tongue in cheek that was I don’t know.)

Hammond: ‘There speaks a true democrat – too important for the people to decide.’

Dawkins: ‘We have a representative democracy – we want politicians to make judgements on our behalf.’

And that is indeed how we avoid the excesses of populism, and rule by the popular press and an unaccountable media. Referenda are dangerous instruments: the ‘popular will’ is a fickle thing, easily roused by rabble-rousers, and the damage once done hard to put right.

Hammond, justifying his position on Europe, then commented: “What’s gone wrong is very simple. The economic benefits haven’t been materialising for Britain, so many people feel that the dynamism and entrepreneurialism of our economy has been held back by the dead hand of Brussels bureaucracy.”

Does he really believe this? To quote an article elsewhere in Prospect (by Springford and Tilford), “there is next to no evidence that EU membership is a significant constraint on the supply-side of the UK economy. For example, according to the OECD, Britain’s markets for goods and services are the second least regulated in the world.”

If we’re not reaching markets – and that is especially true  compared to our European neighbours in countries outside the EU – it isn’t the EU’s fault.

Look elsewhere, Philip, and you might begin to do your job encouraging British firms to get stuck into markets round the world.

(It’s interesting to speculate on why British firms do underperform outside Europe. Two related suggestions: the size of our domestic market, and more broadly the English-language market, so there isn’t the same urgency there is for others; and a certain discomfort dealing with other countries and other languages. The world dominance of English may actually count against us.)