Category: Power Dynamics

Categories
All in the Mind Power Dynamics

Why Labour will not bring about a fairer Britain

In less than 5 years, the Labour left seemed to have forgotten the sheer treachery of the last Labour administration. Rather than focus their attention on the real ruling classes sitting in corporate boardrooms or relaxing on Caribbean yachts, they prefer to demonise the bunch of overgrown public school boys and girls in the current governmental management team. You see national governments don't really have much power these days. Big decisions are made elsewhere. More important, to any rational and emotionally detached observer New Labour and the Conservative/Liberal Democrat coalition are just two brands of the same product marketed at different sections of the voting public. The Conservatives like to appeal to the common-sense middle classes, a demographic that has shrunk considerably since the 2008 banking crisis. While Labour hold on to some of their core traditional working class vote in Wales and parts of Northern England, they appeal increasingly to the Guardian-reading managerial classes as well as ethnic minorities and welfare dependents who feel uneasy about Conservative rhetoric on tougher immigration controls or welfare cuts. Ironically the LibDems share much of the same demographic, but are tarnished by their support for the ConDem Coalition government. This leaves much of the tradional working and lower middle classes without a voice. Their jobs have been outsourced and their wages compressed, while their taxes fund massive corporate largesse and social engineering. For now, UKIP is filling this vacuum, but are unlikely to challenge the hegemony of the same bankers who corrupted New Labour or address the fundamental economic imbalances that causes much unbalanced migration. The Greens appeal mainly to wishful-thinking Bohemian intellectuals disaffected with New Labour, but offer an unworkable mix of high-tax and high-spending neo-keynsiansian and environmental measures that could only work in a zero-growth steady-state economy unable to fund the welfare state in its current guise. Let's just look at the some of the policies the last Labour government forgot to detail in its 1997 manifesto.

  1. Tuition fees, within months of being elected Labour reversed its previous opposition to replacing university grants with loans. The old system worked when only 15 to 20% of school leavers went to university, but the employment market now requires most office workers to have a degree. Indeed as the further education sector grows, degrees are devalued, but without a degree many young people cannot even get on the career ladder, unless they turn their minds to practical manual jobs. It would have made much more sense to keep grants for STEM and medicine students and for top-performing students from poorer backgrounds in other academic subjects, while withdrawing subsidies from non-essential degrees and encouraging more to learn practical trades.
  2. Bombed Serbia (1998). Throughout the 1990s we witnessed ongoing civil wars in the former Yugoslavia. The Western Media had decided to blame it on the Serbian leadership, which served as a convenient test case for the new humanitarian interventionism, especially as many of the alleged victims of Serbian nationalism were Muslims, whose votes Labour would later rely on. Blair could then pose as the saviour of Kosovan Albanians. We now know the death toll between rival groups was much more evenly balanced than presented in the mainstream Western media and the purported Kosovan freedom fighters (KLA) were armed and funded by the CIA.
  3. Supported US destabilisation of Middle East with regular depleted uranium airstrikes on Iraq. The Blair government remained loyal to US foreign policy in the Middle East, joining regular airstrikes over Iraq to enforce the No-Fly Zone imposed in the aftermath of the first Gulf War.
  4. Let banks issue loans to low-paid and unemployed to boost consumer spending while manufacturing migrated abroad.
  5. Sold gold when at its historical low in 2001 to boost US dollar
  6. Allowed massive expansion of retail and entertainment sector.
  7. Failed to train millions of long-term unemployed people to do all those essential jobs that any country needs.
  8. Subsidised low-pay through working family tax credits.
  9. Hid real unemployment by broadening definition of disabilities and encouraging more young people to undertake useless degrees. Since since 1997 we have seen a proliferation of pointless non-productive managerial, marketing and surveillance jobs. Few jobs are directly associated with the things people really need. If you want to have your imported washing machine fixed, in our brave New World you'll probably call a service company who will dispatch a ready trained technician authorised to identify and possibly replace an inexpensive component. For every hand-on tradesperson or engineer, there appear to be many more pen-pushers and client relations managers. Official unemployment may be much higher in Spain, but at least Spain not only exports more food and cars, but has a booming tourist industry. However, if we look not at the official jobless count, but at the number of people with a real full-time job, then over 8 million UK adults of working age are not in employment, education or training or classified as stay-at-home parents. The UK also has the highest number of part-time employed workers who rely on tax credits to make end meet.
  10. Allowed a massive rise in unbalanced immigration leading to a huge oversupply of cheap labour and a population rise of 5 million in just 13 years. Since the end of WW2, the UK had accommodated many immigrants from its former empire. However, with many Britons migrating to Australia, Canada or the USA, net migration averaged under 30,000 a year and for a few years in the mid 1970s and early 80s was subzero. Since 1997 these numbers changed rapidly, as migratory pressures and cheap travel enabled millions to seek their fortunes in wealthier countries. At the same time, British workers lacked both key practical skills such as plumbing, bricklaying or catering and incentives to accept low-paid jobs, leaving a gap in the market for keen young labourers willing to work antisocial hours on little more than the minimum wage. This set the scene for Labour's 2003 decision to allow workers from Eastern European countries the same rights as any other EU countries. Since 2004 net migration has consistently topped 200,000 a year, dipping only briefly 2008 and 2011 and the country's population has risen from 58 million in 1997 to 64 million in 2014. Whole employment sectors, especially catering, construction and food processing, came to be dominated by new migrants. Yet New Labour pretended nothing had changed. Immigration had long been a side issue. While most politicians agreed balanced and gradual migration could benefit society, they now had to defend rapid and increasingly unbalanced migration, i.e. although many Britons migrated to the rest of Europe, they were mainly skilled professionals, English language teachers or retirees. As the New Labour decade progressed, more and more ordinary voters began to realise a disconnect between politician's rhetoric about building a new global future, and reality on the ground where whole neighbourhoods were transformed and job security became a distant memory. While the metropolitan elite discussed equality, diversity and anti-racism, the marginalised indigenous working classes were more concerned with job security and social cohesion.
  11. Allowed property prices to rise exponentially to over 10x average salaries. While official retail inflation remained low, housing accounted for a growing percentage of people's outgoings. Indeed Labour continued to sell off council housing stock to housing associations. As the number of low-paid and under-employed households continued to rise, the government's housing benefit rose to over £20 billion a year. In much of the South East of England, a married couple on average wages (approx. 25 to 30k) could no longer aspire to buy a house worthy of calling home.
  12. Obsession with growth led the UK to increase its carbon footprint largely through consumption of goods manufactured elsewhere. While British consumers continued to buy cars, washing machines, furniture, electronic entertainment gadgets and other household accessories, manufacturing jobs drifted abroad as UK workers proved unable to compete with East Asia. However, the service sector, especially retail, media and entertainment, kept expanding. Every week would bring news of factory closures and supermarket openings.
  13. Supported US occupation of Afghanistan in 2001. Within months of the tragic 9/11 attacks on the World Trade Center, New Labour joined forces with the US to attack Afghanistan, initially to hunt down the perpetrators of this dastardly act of terrorism, but latterly to promote women's rights and democracy. While they succeeded in killing tens of thousands and capturing eventually Osama Bin Laden in neighbouring Pakistan, the Afghan civil war continues to rage with much of the country still controlled by the Taliban.
  14. Deregulated booze and gambling. While Labour banned smoking, they made it much easier for people to get drunk and gamble away their devalued salaries. Indeed, not only did New Labour allow a massive expansion of casinos, they allowed the gaming industry to advertise on prime time TV.
  15. Enforced PFI contracts in the health service. Labour has long claimed to be the party of the NHS, yet under New Labour, the preferred way to fund new hospitals and facilities was through Private Finance Initiatives, which for short-term financial gain will burden future generations with £200 billion of debt.
  16. Expanded surveillance and tried to introduce identity card
  17. Supported US occupation of Iraq. Despite the largest demonstration in British history, with some 2 million travelling to Central London to protest the imminent US-led invasion of Iraq, the Labour government sent British armed forces to
  18. Oversaw massive rise in prison population. While nowhere near US levels of incarceration, England now has the highest imprisonment rate in Western and Central Europe.
  19. Passed 2007 Mental Health Act leading to massive rise in number of adults sectioned (detained) without consent. Note how mainstream politicians of all hues have championed mental health awareness, while in reality mental illness spending has continued to rise apace with the diagnostic rate for personality disorders. Yet few have linked this trend with other forms of invasive surveillance.
Categories
All in the Mind Power Dynamics

How to Help the Needy

At this time of year, we are supposed to turn our minds to the wider community around us, so everyone can enjoy a Merry Christmas and restore their faith in humanity. People in the UK seem to have three competing personas.

  • The do-gooder: always thankful of one's relative financial privilege and eager to share some wealth with charities or maybe with less fortunate neighbours or relatives.
  • The reveller: focused on having a good time and spending as much of their cash as possible on lavish indulgence, expensive clothes, holidays, gadgets, new cars, booze and other recreational drugs.
  • The obsessive compulsive loner: ungrateful and cynical about overhyped festivities, worried that everyone else is having a better time.

Amazingly these traits often coexist in the same person. One may buy an expensive present to keep a relative happy, get drunk at the office party and spend Christmas day barely tolerating relatives concerned only with pop culture. Why are so many people so miserable when so many others exhibit so much joy and goodwill ?

Advertisers and peer pressure urge us to max out our credit cards or contemplate payday loans to ensure nobody in our immediate circle of friends and family feels deprived of the latest fashion accessories and gadgets. Once upon a time, a young boy would cherish a brand new Meccano set, a remote-controlled toy car or, if he was really lucky, a bicycle. Today, anything worth less than the latest and greatest game console or a top-of-the-range electronic smartphone is bound to disappoint.

Yet this Christmas thousands of tonnes of uneaten roast turkey and vegetables will end up in brown recycling bins. Hundreds of thousands of unwanted presents will be sold on ebay and the same Chinese container ships that carried many of our Christmas presents will return with plastic and cardboard packaging. Most presents will have a short life span. Some gifts will last just a few months or maybe just weeks or even just days before they join a pile of assorted junk destined for some hapless charity shop customer. Yet leading economists worry when retail sales fall and rejoice when people buy more junk.

The latest craze among the better educated click-happy middle classes is to order distant friends and relatives a Christmas hamper. Back in the day, local community groups would distribute donated grocery items to old and disabled people in the neighbourhood. Now, hampers have become a multi-million pound business and recipients are often those who least need these festive treats. Apparently everyone loves more chocolate, cheese, Christmas pudding and wine with their fridge and pantry overflowing with special treats. As Christmas loses touch with its Christian roots, it has become a huge collective shopping spree of atomised individuals wrapped up in their own tiny social networks, eager to demonstrate both their outward generosity and their feigned merriment. Post-modern society frowns on frugality and sobriety.

Marketing agencies have long been aware of our dual needs to exhibit altruism and indulge our material desires. As you shop, charity workers will encourage you to donate some of your earnings to some spurious cause whose true agenda you ill-understand, but whose worthiness you dare not question. So for every £100 you spend on fashion accessories, multimedia consumption devices, branded fragrances and so on, you may allocate £1 to the marketing campaign of what sounds like a good cause, but don't really know how much of your £1 will actually help the vulnerable individuals the charity claims to help.

Charities, or the third sector as some call it, are now a multibillion pound business. They have chief executive officers just like corporations and often receive billions from very profitable businesses. In many ways they supplement the welfare state, but because of their allegedly philanthropic nature they enjoy tax exemption. How could former prime minister Tony Blair pay just 3% tax on his earnings of £12 million in 2012? By setting up a set of charities and business consultancy, he could legally claim most of revenue either as business expenses or as part of a non-profit endeavour.

However, many charities have become household names in the do-gooder brand awareness market. Most of us have relatives or friends who have died of cancer, so any charity claiming to fund research into cures for cancer must surely merit our support. However, pharmaceutical multinationals and the growing biomedical business have vested interests not so much to find a cure, but to expand their markets.

A couple of years ago I had to work on the payments gateway of the new Web site of a major UK charity, Amnesty International, an organisation I once greatly sympathised with and regularly donated to. They had outsourced their Web site redevelopment to a Central London digital agency, housed in the same building as Saatchi & Saatchi. The digital agency shared open-plan offices with a much larger marketing agency whose clients included Shell Oil, Novartis, AstraZenaca, McDonalds and The British Heart Foundation. Being associated with Amnesty International must have been a massive a PR coup for company busy marketing fast food and diabetes drugs to growing East Asian market. Amnesty had become a brand with a message barely distinguishable from other commercial brands, a kind of horror story that invited you to donate to good causes. Why would Amnesty International hire an expensive marketing agency to do something many budding unemployed Web developers could have done for a fraction of the cost? In another corner of Central London under AKQA's plush offices is the UK headquarters of Save the Children. AKQA is one of the world's largest advertising outfits. They advertise everything from booze to video-games, cars to luxury holidays. The very same marketing geniuses that urge you through clever social media campaigns to buy your 10 year old son a Sony PlayStation 4 complete with 18-rated games, also want to save him from potential child abuse. Once upon a time, child abuse meant extreme deprivation and/or negligence often combined with serious physical assault. Whether these extreme cases have become more or less common is a separate debate, but these days most parents are very mindful that any attempt to enforce discipline by overly coercive means is very likely to land them in trouble with myriad agencies overseeing their children's progress. As a result of family breakdown and the information technology revolution, children are increasingly cocooned in their bedrooms in touch with a parallel universe of youth-oriented social networks, into which the likes of AKQA have invested big time. A parent's role has been reduced to that of a breadwinner and enabler. If you don't buy your kids XYZ gadgets, you are a bad parent, unless you are lucky enough to live in an isolated community where children still socialise by more traditional means.

If you really want to help tackle the causes of misery and hardship, why not just opt out of the consumer rat race, invite a lonely neighbour around and stop trying to keep up with the proverbial Joneses.

Categories
Power Dynamics

Does Scottish Independence really matter?

As a half-Scot and half-Englishman, I never really identified as either. I grew up to believe in Britain as my father owed his career in the army and later British Aerospace to the archipelago's imperial legacy. Whenever my English mother would inadvertently confuse England with Britain, my brother would correct her. I'd support Scotland in football and in the Commonwealth Games, but Great Britain at the Olympics. Scotland remained the land of clan battles, legends, inventors, Hogmanay, Highland Games, Whisky, Billy Connolly and Sean Connery, a quaint region of post-imperial Britain. There had long been two Scotlands. Here I mean not so much the age-old Highlands / Lowlands feud, but the contrast between scientific enlightenment, embodied by David Hume, Thomas Carlyle and James Watt and later industrial decline, portrayed so brilliantly in Irvine Welsh's Trainspotting and fictional TV character Rab Nesbit. Scotland's best and brightest tended to emigrate, while the social ills of alcohol abuse, bad diet and some of the worst poverty levels in Europe blighted those who remained. Until this very day the UK armed forces draw a disproportionate number of recruits from Scotland. The country's strategic military importance greatly outweighs its relative proportion of the UK population. Then came the first oil shock of the early 70s and the prospect of black gold in Scottish coastal waters. Although by that time 300 miles south of the border in Southern England, my Scottish friends and relatives seemed determined to get their fair share of the coming oil bonanza to bring new life to the old country. Yet after the 1979 referendum on devolution failed to attract enough votes (a simple majority voted yes, but many more failed to vote), Scotland, alongside Northern England and South Wales, faired very badly as manufacturing industries moved abroad. Ironically, the Thatcherite revolution was not so much about Great Britishness, that was just rhetoric reinforced by her role in the recapture of the Falkland Islands, but about opening up markets and transitioning to a new service-based economy. A large strand of Scottish public opinion has until recently been conservative with a small c upholding national traditions, but also adhering to a strong Calvinist belief in prudence, self-discipline and restraint. Sadly, junk culture with its beguiling forms of multimedia entertainment has taken the country's most underprivileged classes by storm. Not surprisingly Scotland would later become the electronic gaming hub of Europe, while other industries, including the short-lived Silicon Glen, outsourced production elsewhere. Despite a brief industrial revival in the early 1990s, under New Labour, Scotland transitioned, like its southern neighbour, to a post-industrial economy. IBM, Lexmark, Hoover and many others moved away for good, as global retail outlets spread mushroom-like across the urban landscape.

UK as an anachronism

As Glaswegian comedian, Frankie Boyle, points out, rather than invest the proceeds of North Oil in education, infrastructure and next generation engineering, the Westminster government chose to subsidise mass unemployment and later disguise it through the redefinition of disablement . All of a sudden you could be disabled not because you were crippled, blind or deaf (though modern technology can empower even the severest cases of physical disability), but because you had succumbed to drugs, booze and all the psychological traumas so common in people deprived of a true purpose in life and forced to while away their days as mere welfare dependents. While many blame Thatcher for single-handedly destroying the Scottish soul, its policies were dictated solely by the needs of multinational corporations who owed little allegiance to ordinary British people of any national persuasion, except as consumers. Indeed rather than balance the books, Thatcher's government squandered oil proceeds on short-term priorities such as expanding welfare by letting industry move abroad and cutting taxes for the rich. Yet after 18 years of Tory rule, New Labour continued in the same vein, but rebranded as a progressive internationally minded venture. The boundaries between public and private institutions continued to blur, as bureaucracy expanded, but also outsourced services to private bidders. Former public sector organisations, like British Rail and British Steel, had been sold off and were now run by unaccountable multinationals. Power was slowly but surely slipping away from the Westminster Parliament to boardrooms and remote transnational institutions. Many on the left had initially opposed the EU, but now the new left saw it as a force for social progress, despite enforcing privatisation and fiscal restraint on all European countries. Successive treaties agreed under Conservative and Labour governments handed powers to the EU Commission. Most disturbingly New Labour supported corporate globalisation in the guise of free trade and open borders at all costs. Rather than negotiate to protect the interests of British workers, British-born lobbyists campaigned for opening up European markets to cheap goods from the Far East, thus destroying small manufacturers in much of Southern Europe, unable to compete with heightened competition. Protectionism, once supported by the labour movement, became a bad word. Only global institutions could bring about change, but the multi-billion dollar lobbying industry, with its various branches in PR, mass media and charities, can easily subvert any grassroots movements.

Rebranding Scotland as a Euroregion

However, in one important area the Scottish experience of recent social changes differs greatly from the Southern English experience. Scotland remains largely peopled by Scots. Indeed, outside a few districts of Glasgow and Edinburgh, the largest ethnic minority are the English. While the Scottish population has risen from just a wee bit over 5 million in 2001 to around 5.3 million in 2011, it has plenty of empty houses and unused land. By contrast England alone has gained over 4 million new residents in the same period with vast swathes of inner cities and market towns transformed out of all recognition. Migration has increased rapidly worldwide, more people move in all directions than ever before. As recently as the 1970s annual migration flows would see 30–50,000 people move either way, since 2001 we've seen more than a ten fold increase in migration numbers, e,g 650,000 moving to the UK (mainly England) and 450,000 moving away). Most of us on the left saw Commonwealth immigration as part of a post-colonial settlement and welcomed our new neighbours. However, in the age of cheap air travel and growing migratory pressures from the rest of the world, mass immigration can lead to social upheaval uprooting formerly cohesive communities and replacing national identities with vague and volatile regional identities. I know from my own line of work in software development, labour market instability and regular relocation has become the new norm. When young English people complain about competition from the new wave of industrious Eastern European immigrants, some politicians suggest they take advantage of open borders and migrate themselves (It seems odd to hear nothing but Polish, Portuguese, Bengali and Arabic in London, only to feel swamped by British ex-pats in Spain). Of course, many Brits do, but usually either wealthy pensioners or highly skilled professionals and business-people. If you need a plumber in Warsaw, do not expect to meet a keen Essex lad filling a gap in the handyman market, though you might meet one on an extended pub crawl. The Scottish social fabric has simply changed much less dramatically than in England. Scotland is much more Scottish than England is English in much the same way as Austria has always seemed to me much more German than Germany, which these days is surprisingly cosmopolitan.. Indeed English is spoken more widely and more eloquently in Glasgow and Edinburgh than in London, Birmingham or Manchester. In many ways Scotland reminds me much more of the Britain I once knew than modern metropolitan England.

All five main Scottish parties (SNP, Labour, Liberal Democrats, Greens and Conservatives) support open borders with the rest of the EU, although Scottish public opinion seems just as sceptical of the EU and the purported benefits of mass immigration as down south. More intriguingly, at least four of the main parties pander Scotland's recent conversion to the culture of welfare entitlement rather than self-reliance and social solidarity. The SNP would have us believe unshackled from Westminster's chains, optimistic oil revenues will reverse the current government's alleged cutbacks (in fact they have continued to increase public spending and made only modest changes to welfare provision, at least compared with EU countries like Greece, Portugal or Ireland). Labour, by contrast, reassure their electorate that the UK will continue to subsidise Scotland, presumably with funny money earned at the city of the London. Few Scottish people seem aware of the sheer duplicity of the career left. Ken Livingston has long claimed that London subsidises the rest of the UK, especially outlying regions such as Scotland. While Ken hopes City profits will fund more growth in London (whose population and economy eclipse Scotland's), the SNP places its hopes on massive oil profits.

Countries as disparate as Greece, Portugal, Finland and Estonia are powerless to go against the global flow, an unstoppable juggernaut of rapid technological change and social progress albeit with plenty of teething problems. Their economic policies are dictated largely outside their borders. Their local management teams can lower corporation taxes or pioneer new retraining programmes, but only within tight budgetary constraints. They spend much of their legislative time harmonising local laws and customs with new global or European standards. Would Scotland be any different ?

Aye, but with no illusions

Let me just set the record straight, I'm voting yes for two reasons. First because unlike globalists, I actually believe in self-determination. Ideally, I'd like to see some sort of loose federation of the British Isles. Let us not forget that over 90% of imports into Scotland travel via England. If the global economy implodes, we will need to be on very good terms with our immediate neighbours. Second, I'm curious to see how things will pan out. I'd love to see Trident nuclear submarines sail back to the USA. A rump UK would have diminished status on the world stage less able to help the US in its global policing operations.

However, I vote yes so with no illusions. Of course, a currency union would make Scotland subservient to the Bank of England, and without a large increase in oil revenues the SNP's grandiose public spending plans remain uncosted. Raising income tax will just encourage the rich to emigrate, while lowering corporation tax to attract inward investment will prompt other countries to do the same thus boosting corporate profits. Scottish education has a long way to go before it can compete with Eastern Europe and Eastern Asia. To revive manufacturing, the government would not only have to invest billions in new infrastructure and training, it would have to impose trade restrictions or drastically boost competitiveness and productivity.

The only way a nominally independent Scotland could succeed would be for global crude oil prices to rise enough to make new North Atlantic oil fields more profitable, but in such a scenario global demand may also shrink. To tap wind and wave energy to any meaningful degree, someone would have to invest billions and wait decades before reaping the benefits of such monumental endeavours.

However, I suspect life after the breakup of the UK will not be plain sailing. Global events will eclipse the rebranding of Scotland. The Euro-zone may well collapse and the EU may disintegrate into looser regional trading partnerships along the lines of EFTA, while the Chinese economic bubble may well burst, unable to access cheap resources to fuel further growth. How would a Scottish government behave without economic growth? Would it relocalise the Scottish economy and choose the post–1991 Cuban model of self-sufficiency? Would it seek closer ties with its Scandinavian and British Isles neighbours? Would it be forced to abandon welfarism in favour of the Calvinist tradition of hard work? How would Scottish voters react if a future bankrupt Scotland had to impose austerity on a Greek scale just to accept another loan from the EU? Greece too has enormous resources as does Sweden and Denmark. But none are able to stop the global steamroller.

Do the establishment really care?

40 years ago an independent Scotland seemed almost unthinkable. If the SNP could muster 20-30% of the vote, pundits would just write it off as a protest vote. Back then the Scottish intelligentsia, alongside the Unionist movement and Glasgow Rangers fans, were passionately pro-British. But the British ruling class has long joined the borderless global elite, more concerned with property prices in the south of France than the Scottish fishing industry. The only English politicians who can claim any genuine commitment to an ongoing social union with Scotland would also oppose handing more power to big business and transnational organisations. Yet I suspect they are merely shedding crocodile tears. Where will they station Trident ? Will they still help the US bomb the enemy du jour in the Middle East ? Who cares. Rupert Murdoch has already decided that his neoliberal globalist project can work fine in the SNP's Euro-region. Most disturbingly, the SNP have already agreed in principle to the new TTIP ( Transatlantic Trade and Investment Partnership), claiming only they will exempt the NHS from free-trade rules. If the likes of Rupert Murdoch have their way and lobby a future Scottish government as successfully as they have in other countries, Scotland could well end up as an outpost of corporate America, with as much independence as North Carolina. The Scottish Sun, which supported the 2003 US/UK occupation of Iraq, seems set to support Scottish independence or a good location for Rupert's new private golf course. If some of the latest polls are right and a majority now support the Yes campaign,the Scottish Sun may well have played key role. Tommy Sheridan's dream of socialist beacon of enlightenment may well give way to a puppet government at the mercy of big business.

Categories
All in the Mind Power Dynamics

The Trouble with the NHS

How disease-mongering turns patients into customers

The closest thing modern Britain has to a unifying state religion is universal admiration of the beloved National Health Service or NHS for short, although its remit has expanded considerably since its early days when it aimed to provide essential healthcare to all irrespective of income. As a proportion of national wealth NHS spending has risen from 3.5% in 1960 to over 9% now, that's over 18% of government spending. The fastest rise occurred in the frenetic spending spree of the early years of the new millennium, indeed as recently as 2000 it accounted for just 5% of a smaller GDP, see UK Public Spending . And yet perversely many attribute the failings of the NHS to cutbacks rather than misplaced priorities, crippling bureaucracy and an obsession with targets. As a result of the pervasice tickbox culture millions of older and vulnerable patients are given immune-system-suppressing flu vaccines whether or not they want them or address any of the real medical issues a patient may have, while many real life-threatening diseases are either misdiagnosed or go undetected. It must seem ironic that elderly patients are left in death pathways, while younger NHS customers receive cosmetic surgery such as breast enhancements to combat the perceived curses of low self-esteem and depression. The growing number of clinically obese adults may be entitled to expensive gastric bands because their addiction to high-fat foods is allegedly beyond their self-control, while old people die in freezing homes because their neighbours could not be bothered to check. We have the technology to keep people technically alive in a semi-vegetative state until they are brain dead and to appease any perceived physiological inadequacy. Gender realignment treatment used to be a rather extreme measure, eligible for public funding only in rare cases of genuine hermaphroditism. Nonetheless, as surgical techniques improved many, clearly unhappy with their anatomical gender, opted for private sex change surgery. One Iraqi-born millionaire even underwent two gender reassignment operations, and many others have suffered from greater emotional turmoil because of dissatisfaction with the outcome of their life-changing surgery than they ever had when they felt trapped in the wrong body. Yet despite widespread public scepticism of its effectiveness, this invasive surgery is now available on the NHS and to suggest otherwise is now deemed transphobic, a term coined on the back of homophobic. Another growth sector is the murky domain of mental health. According a Nuffield Trust report, mental disorders cost the English NHS £12 billion in 2010, more than double the total spend on cancer. A longer term but welcome trend since mid 20th century has been longer life expectancy and a greater survival rate from diseases that would until recently have been irredeemably terminal, so one way or another health spending has risen in most wealthy countries.

The last European elections even saw the emergence of a new party, the National Health Action Party (NHA), which fielded candidates only in the London region. It has a very active campaigning team both online and among London-based NHS staff. They not only oppose privatisation, but also all cutbacks in NHS spending. This stance appeals to a large cross-section of left-leaning public opinion. However, their simplistic analysis has one small flaw. Government spending on healthcare has increased dramatically since 2001 and has continued to grow even under Conservative and Liberal Democrat alliance. The figures are publicly available. In real terms UK healthcare spending doubled from 2000 to 2010 and has continued to grow very modestly since, currently some £130 billion or 18% of public expenditure or 9.1% of GDP. To be honest this is largely in line with healthcare spending in countries with comparable living standards. But mileage or rather value for money varies. The USA has the highest level of healthcare spending in the world, but yet many much poorer countries have a higher life expectancy. Most notably Cuba and the US have the same mean life expectancy, but in US dollar terms US healthcare spending is astronomically higher. In the US an estimated 100,000 people die every year of inappropriate prescription medication, competing with Unintentional Injuries and Alzheimer's disease for the fifth most common cause of death.

Clearly if we expect our health service not only to cope with the challenges of an ageing population, but also to meet growing demand for lifestyle medicine (cosmetic or performance-enhancing treatment), we must be prepared to pay for it. The recent rise in lifestyle medicine, especially cosmetic surgery, has transformed beauty and wellbeing from gifts of nature into commodities. As a result fairly average imperfections, from misaligned noses and teeth, undersized breasts, balding hair, erectile dysfunction, once considered just unfortunate facts of life, are now treated as major causes of depression and prime targets for medical intervention.

That means we need to decide as a society which categories of healthcare we should socialise and which categories are best left to personal discretion (or in my humble opinion actively discouraged as they destroy social cohesion by emphasising the power of money to transform one's body beyond essential medical need). Certainly if someone endures a tragic accident or succumbs to a debilitating disease, it seems very unfair for their prognosis to depend on their bank balance or ability to pay into a generous health insurance scheme. Socialised healthcare means if you fall victim to injuries or illness beyond your reasonable control, then society as a whole will pick up the bill. However, by redefining physiological imperfections and emotional distress as illnesses, the multibillion pound medicalisation business has significantly boosted healthcare costs. As these costs spiral out of control, we risk throwing the proverbial baby away with the bath water. We all need essential medical care at times in our life. If we are generally healthy, this may mean just regular checkups with the odd vaccination (another controversial topic) and for women a short stay in hospital to give birth. Natural human diversity means we are not all blessed with perfect bodies or physical performance potential.

However, socialised medicine also requires social cohesion and solidarity among the different groups within society. While we delegate responsibility to medical professionals, at all times they must serve our needs, not those of disease-mongering pharmaceutical multinationals or invasive state apparatuses. We should not become mere customers or guinea pigs for medical experiments, but be empowered patients, who just want an honest diagnosis and impartial evaluation of medical options. If we expect others to subsidise our healthcare, then we have a responsibility to look after ourselves as best we can. If I decide to engage in a high risk activity for my own pleasure, it seems reasonable that I take out additional insurance. Why should others foot the bill for expensive restorative surgery, if some daredevil motorcyclist decides to jump over 10 double decker buses ? The point is as medical technology evolves, we must clearly define genuine medical needs, otherwise we will just sleepwalk into the collapse of the National Health Service as we knew it and healthcare will be just a profit-making business. Indeed this is already happening albeit underwritten by taxpayers and banks. As Professor Allyson Pollock reminds us "Virgin landed a £630 million contract for community mental healthcare, with no previous experience, while RBS, Serco and Carillion, to name but a few, are raking in billions in taxpayer funds for leasing out and part-operating PFI hospitals, community clinics and GP surgeries. A private company now runs an NHS hospital. US private medical companies are now involved in the privatisation process, such as HCA and United Health. HCA is in a joint venture with University College Hospital London, where it provides cancer treatment, but only for those who can pay. Both New Labour and the current Conservative/Lib-Dem coalition have turned the NHS into a front for a rapacious biomedical business.

Categories
Power Dynamics

Propaganda Wars

For too long an unholy alliance of North American and European media outlets, principally BBC, CNN, Fox News, but also their French, Spanish, Portuguese and German-language equivalents, ensured coverage of evolving world events reflected the message that NATO, the EU and the leading global corporations wanted us to hear.

Not only do they set the agenda, i.e. decide which news stories are worthy of our attention, they can choose how to present complex regional conflicts, exclude inconvenient voices and promote opinion leaders who support their version of events. Resource wars are portrayed as battles between outmoded dictatorships and enlightened progressives willing to participate in our globalised utopia.

The trouble is their changing stories have failed to convince everyone. Not all Europeans actually believed the Afghan and Iraq wars were really about women's rights or deposing evil dictators. Some politicians publicly disagreed with the US/UK occupation of Iraq, but then still did business with the same multinationals, banks and military alliances that pushed for war in the first place. The sad fact is to keep the illusion of democracy alive, the mass media could only convince the US and UK electorate to vote for parties that supported the war. As it happens opinion polls in the run up to the 2003 invasion show a clear majority of British voters opposed to military action, but this changed as Parliament approved military intervention. France and Germany stayed out, but only a few years later the French happily intervened in Haiti, Libya and Mali.

Now the European Union and NATO have set their eyes on further eastward expansion and have backed a coup in Ukraine, some of us are not quite buying the latest outburst of self-righteous propaganda. Why should we trust the same media pundits who sold us the Iraq occupation to promote freedom and democracy in a country whose tortuous history remains a mystery to outside observers. Why do they loathe Russia, yet fail to criticise Saudi Arabia or China responsible for human rights abuses on an infinitely greater scale? Did any BBC pundit explain how the oil-rich Saudi Arabian regime now has the world's 4th largest military budget (USD 67 billion a year ahead of the UK at 57.9 billion) and is the biggest client of UK-based arms dealer BAE Systems ?

The apparent evilness of Putin's Russia allegedly has something to do with limited free speech and gay rights. But despite a deceptively vast range of media outlets in the West, they all seem to promote the same basic set of ideas, i.e. we need more free trade, more economic growth and more social engineering to uproot us from our traditional mores.

However, the Russian Federation is now reasserting its independence, and learning to play the West's game. They have studied the techniques deployed by the BBC, CNN at al for decades and launched their own channel, Russia Today, to challenge BBC propaganda head-on. So whom should we trust? Neither, but now the BBC / CNN cabal have lost their monopoly on English-language news. On some issues Russia Today seems more balanced, but on the others as biased as the BBC. the global balance of power is clearly shifting away from the North Atlantic to vast expanses of resource rich Siberia and resource-hungry hyperactive China. I will be watching, but will trust no-one.

Categories
All in the Mind Power Dynamics

Dictatorship by Consent

Apparently, if we believe many opinion leaders, we fought most recent wars to spread freedom and democracy. Allegedly people across the world admire us because of our deep-rooted civic political culture. Never mind any inconvenient conflicts between personal freedom and true democracy, but what do the international ruling elites and their faithful cheerleaders actually mean by this Hellenic word for people power ?

Do they really want an open debate about issues that affect our daily lives? Are there really prepared to explain the inevitable dilemmas that arise from conflicting popular demands? Do they really understand the enormous sense of alienation and psychological inferiority that mass consumerism and an obsession with presentation and body image has created in so many of us? Given the choice, everyone would want higher wages, better working conditions, more leisure time, more green fields, cleaner water, better transport infrastructure, more affordable heating, larger houses, better healthcare, longer lives, more holidays, more fun, more friends and a higher social status. It hardly matters if we cannot have all these wonderful traits at once. However, if the mainstream media can set the agenda, stage-manage debates and isolate inconvenient critics, they can keep alive the illusion of democracy and free speech.

If we did as big business wants, we'd all halve our salaries, double our work load and triple our spending. If numbers don't add up, we can always ask banks or central government to create more money out of thin air, such is the logic of the debt-fuelled consumption-driven economy. Yet the more we are indebted and the more we rely on international trade, the more we transfer our theoretical sovereignty to unaccountable global entities. It often seems we can only debate how to boost the economy, how to attract more inward investment, how to accommodate more international commuters, how to deal with cross-border crime or how to combat terrorism. We do not debate whether any of these measures are necessary, i.e. do we really need to grow our economy?

As mainstream national political institutions become powerless in the face of tentacular transnational remote organisations, political debate is limited either to trivial parochial matters or is reduced to simple negative campaigning, blaming rivals for the collateral damage of policies that would have been implemented anyway. The recent Labour party political video, devised by the US media guru behind Barrack Obama's electoral victory (David Axelrod), may fool a few young angry voters, who'd like to blame a few convenient scapegoats for their misfortunes, but it is a classic case of the pot calling the kettle black. It perpetuates the myth that in the early 21st century any difference remains between the mainstream parties on any subject of importance. The video focuses on a few safe and simplistic issues, tuition fees, rising heating costs and bedroom tax. It then blames the old guard of British aristocracy. Just because modern CEOs wear jeans, listen to rock music and no longer have posh Etonian accents, does not make their huge financial superiority any less grotesque. Indeed the gap between rich and poor had been steadily rising for over 30 years. According to the top 10% earned just 7.1 times more than the bottom 10% in 1995, by 2008 this ratio had risen to 10.1 times.

It doesn't take long to disentangle any of these claims and see how Labour offers little alternative to the two other orthodox parties. Take, for example, the much-maligned bedroom tax. It is only an issue because housing has become unaffordable without huge government subsidies. Housing benefit effectively subsidises landlords, so why should hardworking low to middle income tax-payers in areas with lower property prices subsidise special categories of people entitled to housing benefit in wealthier areas? New Labour have become the biggest defender of spiralling housing benefits introduced by Thatcher after her government sold off council houses. Moreover, thanks to a rising population, largely driven by immigration, demand for social housing has never been higher, and thus needs to be rationed. Do New Labour plan to build millions more homes and where ? Will they admit the rather obvious environmental costs of more urban sprawl in Europe's most densely populated region? I doubt it. Indeed their stance against bedroom tax is just an exercise in political point scoring. In 13 years in government they abysmally failed to increase the tax burden on international oligarchs, multinational corporations and banks, as they relied on their presence in the UK to artificially boost the economy.

Not only did New Labour introduce tuition fees in 1997 and increased them to £3000 later in 2006, they promoted a huge expansion in higher education that turned universities into businesses competing not just for corporate sponsorship, but in the lucrative international student market. As a result degrees are not only devalued, but reflect the needs of big business rather than of wider society. With so many other spending obligations and financial constraints, no government can now afford to return to the old grant system, where most students from poorer backgrounds received fully subsidised education, but until the 1980s only 15 to 20% went to university. Yet today only a minority of the nearly 50% of 18 to 21 year olds who now attend university attain degrees of any practical worth with social sciences, law, business administration and creative arts among the most popular subjects. Biology is now dominated by the needs of the burgeoning pharmaceutical, biotech, assisted fertilisation and private healthcare (cosmetic surgery) sectors. Only a fraction of medicine-related degrees produce new doctors, most prepare students for life as a pharmaceutical representative, fertility clinic lab technician or psychiatric nurse. Such professions are in greater demand as a growing proportion of the population is on prescription medication, opts to bypass nature through fertility treatment or succumbs to emotional disturbances that we have relabelled as mental health issues.

Most of us shudder at the thought of opening our electricity or gas bills, largely because back in the 1990s they were, by European standards, incredibly low because most gas still came from the North Sea. Now most gas is imported and energy demand has grown. Logically we need to either increase energy production, with all its potential environmental consequences, import more or consume less. Token gestures like unplugging your TV set at night will make little difference. By offering short-term subsidies for heating, New Labour would promote inefficiency and fail to provide a long term solution, i.e. adapting to a low consumption economy, ensuring people can live healthy lives with less waste. If you naively believe they would just tax a few fat cat energy firm bosses, just consider the real reasons behind the 2003 occupation of Iraq.

In reality although some debate still takes place even on contentious issues such as mass immigration, the hands of local, regional and national governments are tied. All they can do is present a narrow set of options and hope big business will work magic to bridge the growing gap between social and environment sustainability and economic expedience. If people really exercised democratic control, you can bet the ruling elite would change strategy, as they often do. Instead every few years we are just given the opportunity to vote for another set of middle managers. Sometime we elect mavericks, who may rant and rave in parliamentary talking shops, but all along big decisions affecting people's jobs, community, housing, transport etc. are decided in remote boardrooms and think tanks.

Categories
Power Dynamics

The Globalist Mindset

If you love planet earth and the human race, may I humbly suggest corporate globalisation leading to a grotesque misappropriation of resources may not be such a good idea after all. However, some self-proclaimed progressives disagree. They somehow associate the onward march of transnational organisations, the proliferation of branded retail outlets and the relentless expansion of the non-productive hedonism business with a concept they like to call progress. Indeed, even many wishful-thinking greens and socialists have internalised the notion that we, as a species, are all on a one-way journey towards a better tomorrow and we can face all potential challenges through ever greater cooperation. Guiding us are an alliance of transnational organisations, multinational enterprises and virtual social networks integrated seamlessly with the entertainment industry. As soon as people gain access to the World Wide Web from Norway to Chile or Japan to Angola, they tend to join Facebook apparently to stay in touch with a diaspora of friends and family, but also to broaden their mindmap of familiar faces to friends of friends or newly formed virtual communities of special interest groups. Never has the world been more connected and never has travel from one country to another been so easy. Many global optimists already view countries as mere relics of a bygone era of nation states, fallen empires and anachronistic religions. Local languages, dress codes, cuisines and custom blend into a potpourri of flavours and choices available in an apparent free market. Whether a modern world citizen happens to be relaxing by the beach in Goa, visiting museums in New York City or Paris, attending a business conference in Dubai or inspecting a factory in a Chinese megacity, the interconnected global culture never seems far away. The same brands and artefacts of our postmodern decadence and techno-wizardry accompany financial wealth wherever it spreads. While 50 years ago opulence was concentrated in a handful of wealthy countries, extreme decadence has spread worldwide. There are billionaires in countries we once prefixed with the label third-world such as India, Brazil, Indonesia and even Nigeria, and billionaires in the first and second world countries often hail from former colonies of the old imperial powers. Nowhere is the scourge of ostentation as daunting as in the Middle East, the scene of over 80 years of imperialist meddling and destabilisation. Yet without easy access and control of the world's cheapest oil reserves in the Middle East, the global economy would shrink.

Just 20 years after the fall of the former Warsaw Pact, European governments have become little more than county councils negotiating deals with multinationals and harmonising legislation in line with new laws in other countries and with the wishes of international pressure groups. In practice government ministers act merely as middle managers implementing policies decided elsewhere and liaising with local underlings to mitigate adverse effects for social stability. In many ways the history of post-war Europe has been a conflict between rival visions of global harmonisation. As long as the rift between the Stalinist East and Capitalist West remained, leaders paid lip-service to outmoded concepts such as self-determination, national sovereignty and workers' rights. Countries could intervene to protect markets against destabilising global competition thus protecting not only local jobs, but also key skill bases. After the big powers had redrawn boundaries and forced millions to move, enduring extreme hardship and even starvation, from around 1950 to 1990, Europe enjoyed one of its longest periods of peace, social stability and general prosperity. Admittedly large pockets of relative poverty and social exclusion remained, as did authoritarian regimes in Eastern Europe and until the mid 1970s in Spain, Portugal and Greece. However, the degree of democratic participation and freedom of expression tended to reflect both social and economic realities. Those countries with the highest material living standards and thus best equipped to meet demands for better pay, working conditions and availability of life's pleasures and luxuries, could allow greater debate on economic policies and tolerate much greater dissent. If the business classes can distract the populace with bread and circuses and carefully manage the range of acceptable opinions, dissent can be easily sidelined or channelled into narrow lifestyle issues. Despite longstanding cultural differences, all Western European government pursued essentially social democratic policies. While governments allowed industries to compete, trade, expand and satisfy growing demand for consumer goods, they also invested in technological innovation and infrastructure, expanded welfare provision and protected national markets and workers against unfair competition from low-wage economies.

In the 1980s globalisation entered a new era with the Reaganite and Thatcherite obsession with supply-side economics and outsourcing of manufacturing. Since the fall of the former Warsaw Pact, we have seen the expansion of the European Union from a small set of countries with similar living standards to encompass most of the continent from Ireland to Romania or Finland to Portugal alongside other regional trading pacts from NAFTA, Mercosur to ASEAN (Association of Southeast Asian Nations). As a result the social democratic dream must either be extended to all and sundry or be gradually dismantled. In the UK we have the paradoxical situation where many descendants of the once proud working classes have become trapped in welfare dependence while low-wage jobs are increasingly the preserve of newcomers. To put things in perspective, despite public concerns about immigration from Commonwealth countries in 1950s to the 1980s, this immigration was always relatively balanced by emigration. Indeed between 1945 and 1995, total immigration to the UK was just under 2 million, a large number but spread over 50 years. Of course, the demographic effects were distorted by varying birth rates. Since 1995 more than net migration has been running at between 100,000 and 250,000 a year and the population has risen from a 58 million in 1991 to 63 million in 2011 despite a below replacement fertility rate among the native population. This means the UK has import raw materials, manufactured goods and food to sustain economic growth. So, as ironical as may seem to many trendy lefties, a higher population and greater economic growth in the UK leads to greater depredation of resources elsewhere. Where people suffer hardships in many apparently developing countries, it is often because foreign multinationals have uprooted them from their ancestral lands to exploit resources required by global markets. Yet corporate globalisation acts as double-edged sword, forcing people to leave their homelands and conveniently shifting the blame to the incompetence or corruptions of local leaders, while simultaneously promoting the very consumption-led economic growth that causes this displacement.

A False Sense of Security

Harold MacMillan, British prime minister in the late 1950s, once claimed "You've never had it so good". In some respects our material wellbeing and life expectancy have continued to improve since. However,what mattered most to those who remembered the humiliation of mass unemployment, soup kitchens, orphanages and real poverty below the breadline, were a secure job, affordable housing and a better future for their children. By the early 1960s most Western Europeans had all three essential components of the good life. With the advent of affordable television sets and growing car ownership, the new norm came to resemble the American Dream. It mattered little that most of the world still lived in a kind of post-colonial semi-feudalism or had to endure the excesses of Maoist or Stalinist authoritarian idealism.

Categories
Power Dynamics

11 million empty homes, in the wrong places

The Guardian newspaper has just revealed to its credulous readers that EU-wide no fewer than 11 million dwellings stand empty. This apparent news has been endlessly recycled by various well-funded lobbies and think-tanks to suggest there is no housing crisis in the regions that have recently attracted most inward migration. Meanwhile to accommodate 4 million new UK residents, the government has relaxed planning laws to allow the building of 3 million new homes, many on prime agricultural land. At the same time it has sanctioned hydraulic fracturing across England, which will pollute the groundwater in much of the remaining farmland. So presumably news of 11 million empty homes could not come at a better time. We may be able to house everyone and keep our farmland to cope with rising global fuel and food prices, or can we ?

The trouble is most of these empty homes are far from where most jobs are. Indeed many millions are the direct result of international commuting as young people vacate their home towns and villages in Eastern and Southern Europe and head to the wealthier climes of Northern Europe and the British Isles. Many millions more are second homes built for ex-pats in Mediterranean or Black Seas tourist resorts. Just 700,000 of these empty homes are in the UK, most of which are in rundown post-industrial wastelands. At the other end of the scale are prime pieces of real estate in overpriced neighbourhoods bought as investment by international gangsters, so just as many London-based workers have to commute several hours a day or make do with substandard accommodation, sumptuous properties lie empty in Hampstead and Mayfair.

However, what would happen if we could force the government to seize these properties and allocate them to those more in need? For starters demand would greatly exceed supply. There are nowhere near 11 million des-res Hampstead villas waiting for minimum wage workers to take up residence, there are at best a few hundred. London-wide there may be several thousands of empty properties, but many would require renovation and would only temporarily ease an artificial housing shortage. I say artificial because without mass migration, there would be enough houses for all without destroying valuable farmland. Forced repossession of empty luxury properties would have one very positive side effect, it would discourage property speculators (mainly foreign) from distorting the London market and thus deflate the economy and diminish the need for so-many temporary service workers. Like it or not, the whole London economy thrives on recycling wealth generated somewhere else, so once again you either support corporate globalisation and live with its many consequences, or you support more viable alternatives, that inevitably means economic shrinkage in overheating economies.

Few seem prepared to admit the obvious. With huge economic imbalances between regions, a growing rich-poor divide, shrinking middle classes and open labour markets, globalisation has succeeded in simultaneously creating chronic overcrowding and unbearable congestion while leaving other areas in a state of abandon and social decline.

In addition the environmental impact of housing depends very much on habitation. Abandoned properties may decay, but they pollute very little. Inhabited properties inevitably consume water, electricity, produce sewage, add to local retail consumption and traffic (especially if their owners insist on driving everywhere). For every inhabited house we need to provide more shops, schools, hospitals and roads.

Europe's empty properties fall into 4 categories:

  1. Too expensive, only suitable for wealthy property investors
  2. Holiday homes by the sea or on the slopes, not suitable for young city workers
  3. In areas of high unemployment and mass emigration
  4. Substandard, in a state of disrepair

Of these only the fourth could be easily repurposed to cope temporarily with Europe's large population movements, but long-term we should look at smarter solutions. Rather than moving to where big business offers more lucrative employment opportunities, how about restructuring the economy so jobs are more evenly spread. It really makes little sense for more Eastern Europeans to abandon underpopulated regions to add to environmental problems in London, Frankfurt or Stockholm.

Categories
Power Dynamics

What’s going on in Ukraine?

All of sudden the world's media turns its attention to the transition of power in one of Europe's most mysterious regions extending from Eastern Poland, Slovakia,Moldova and Romania in the West, Belarus to the north and the Russian Federation to the East.

While the mainstream media in the West lay the blame for the Ukrainian crisis clearly with Viktor Yanukovych's deposed Russophile government and its refusal to sign an association agreement with the EU, others note the role played by the US-based National Endowment for Democracy and myriad NGOs in funding and supporting the opposition Euro-Maidan movement, named after Kiev's eponymous central square. The uprising followed a script familiar to observers of other apparent insurgencies in places as disparate as Syria and Venezuela and come sjust 10 years after the much trumpeted Orange Revolution. The young appear to embrace organisations and policies favoured by an international coalition, while the incumbent administrations are invariably depicted in uncomplimentary anti-democratic terms. It must seem rather odd the National Endowment for Democracy support Islamic fundamentalists in Syria against Assad's current secular government, opponents of economic redistribution and social justice in Venezuela (which remains one of the most unequal countries on the planet) and now xenophobes in Ukraine. However, a little perspective is in order. Ukraine remains of the poorest regions in Europe. At $7600 its 2012 GDP per capita is not only much lower than that in neighbouring Poland ($21,000), but also than Russia's at $17,000.

Since the Kievan Rus fell to the Duchies of Poland and Lithuania around 1400, the Ukraine has only existed as a notional ethnolinguistic region. Although it briefly enjoyed independence in 1920, it has only existed in its current borders since 1954 and as independent state since 1991. For most of its history Western and Central Ukraine formed part of the Polish-Lithuanian Commonwealth. With the demise of Poland and expansion of Russia, Prussia and Austria in the 19th century, the Ruthenian region was annexed by the Austro-Hungarian Empire, while the remainder was incorporated into the Russian Empire. After the First World War, Lviv rejoined Poland as Lwow, while Ruthenia formed the easternmost region of the newly created Czechoslovakia. The remainder of the region became the Ukrainian SSR. Known as Russia's bread basket, the region experienced one of the worst famines of the 20th century known as Holodomor, largely due to forced collectivisation, bad economic management and its inability to deal with extreme weather events. Many Ukrainians blamed the Moscow-based Bolshevik leadership and this played a major role in the subsequent collaboration of Ukrainian nationalists with occupying Nazis and their post-WW2 insurgency against Stalinist expansionism.

The 1939 Molotov-Ribbentrop pact allowed the Soviet Union to claim Eastern Poland and temporarily expand Ukrainian territory. After its short-lived, but turbulent Nazi occupation from 1941 - 44, Ukraine became a major beneficiary of the Soviet Union's western terroritial gains. It now incorporated Eastern Galicia, east of the Curzon Line, Slovak Ruthenia and parts of Romania. Millions of Poles were forced to move to Poland's new Western Territories. Before the war, Ukrainians accounted for just over a third of the population in Poland's Eastern provinces. Ethnic cleansing began with the infamous Nazi Einsatzgruppen, responsible for rounding up and massacring Jews and and continued with attacks on remaining Poles and other ethnic minorities by the anti-communist Ukrainian Insurgent Army from 1944 to 1952.

Despite these tumultuous events, the Soviet era saw greater integration with the Russian Federation, with many Russians moving to the Ukraine and Ukrainians to Russia proper, in keeping with a general policy of ethnic mingling among the peoples of the USSR. Although Ukrainian enjoyed official recognition, Russian became the dominant language of education and administration. Since the fall of the former Soviet Union, Russian has lost considerable international prestige. Indeed Ukrainian is now the sole official language as a strong statement of cultural independence.

The hastily improvised coalition that has taken power in Kiev seeks, rather unsurprisingly, to join the European Union and, by consequence, NATO. This will very likely force the Ukrainian government to adopt otherwise unpopular economic convergence policies and allow Western European businesses to expand their retail and banking empires, with higher property and retail prices. Inevitably younger Ukrainians will migrate west, exacerbating a brain drain and demographic imbalance in Ukraine, and competing with other Eastern and Southern Europeans in a very precarious job market in wealthier EU countries. This place even greater downward pressure on wages at the bottom end of the salary scale.

Notes:

  1. Kiev is the customary English transliteration of the Russian name for the city, Киев, while some authors prefer Kyiv based on the Ukrainian variant, Київ . While I sympathise with this approach, why do we still refer to the Flemish city of Brugge by its French name of Bruges or insist on translating the names of so many other European cities from Naples to Copenhagen?

Categories
Power Dynamics

Having your cake and eating it

Imagine you had a choice of three political parties. The welfare party promised better public services, but admitted it may need to increase taxes. The small business party promised lower taxes, but admitted it will need to cut public services. However the magic bullet party promised to slash taxes and boost investment in healthcare, education and transport infrastructure as well as increasing pensions and disability benefits, a sure vote-winner for the economically illiterate. The extra funds would be raised by taxing billionaire bankers and printing money. Of course it wouldn't work, because the billionaire bankers would just hop aboard their yachts and sail to the nearest tax haven, while hyperinflation would devalue the national currency. This logic seems apparent to most reasonable people, but to many economists who believe it does not apply to economic growth. Somehow we can reap all the benefits of greater consumption without worrying about the long-term social and environmental consequences.

More disturbingly, many Greens buy into the growth mantra, especially in regard to welfare provision and open door immigration. Almost instinctively, many left-leaning greens, myself included until recently, tend to blame the grotesque waste of our times on the mega rich. If only a handful of billionaires would do without their private jets and yachts and let the unwashed masses occupy their secluded villas and concrete over their golf courses, we could easily solve all our environmental challenges. For such politically correct greens environmental disasters are not caused by over 1 billion vehicles worldwide that enable their owners to participate in a consumption frenzy or millions of Brits jetting off to Spain's beaches and buying imported goods with borrowed money.

Yet the disproportionate wealth of the banking and business classes depends on an economy hooked on consumptive growth. They thrive on more cars, fridges, cheap holidays in the Sun, booze, cosmetic surgery etc. sold to the masses. In the aftermath of 2001's 9/11 disaster, George W Bush famously urged his fellow Americans to show their patriotism through shopping. In the UK as manufacturing facilities moved abroad, new shopping malls, leisure centres and casinos sprung up everywhere. In the ensuing years both the US and UK governments continued to subsidise mass consumption, underwriting dodgy loans and letting a tarantula-like finance sector lend to low-wage workers and, especially in the UK, to welfare dependents. New Labour's much hailed flagship policy of working family tax credits (alongside others that went to those who didn't work) fuelled the country's biggest shopping spree. Back in my days, in the late 60s and early 70s, many children felt lucky if they received a lego set, an action man or a plastic helicopter. Now, they expact the very latest and greatest games console, a laptop and/or smartphone, yet their parents real earning power has actually declined. This is largely because houses used to be a lot cheaper, electronic gadgets were considered luxuries and most children still lived in traditional families.

Now imagine another choice between three hypothetical political parties. The first party wants more economic growth and an open door immigration policy, while admitting this may lead to greater dependence on imports, a larger population more roads and more building on arable land as well as a potential social conflicts. The second party wants a greener environment and greater social cohesion, while admitting the country's GDP may decline and its international competitivity may suffer. This may sound like a choice between accepting a high-stress job as a stock broker and running a small family farm with a few acres of land. While the stock broker employs a team of underlings to expand his empire, the smallholder painstakingly builds a farm that will feed not just his family, but provide gainful employment and a sense of true purpose for future generations, handing down skills from father to son and mother to daughter. In the short-term and given good economic fortune the stock broker role may well yield much more, but in long term the finance sector is just a giant ponzi scheme with a few lucky winners, but many more losers. The third option, one currently proposed by many on the mainstream left, is to have a greener, happier, more prosperous future with endless opportunities and fun for all simply by rebranding everything we do now as green.

Imagine somehow we can continue to grow both in numbers and in carbon footprint, while miraculously reducing our collective impact on the environment. In this fantasy world, bad diesel-fuelled 4x4s will be replaced not with fewer journeys, bicycle and trains, but with trendy more expensive electric cars. It matters little that such vehicles not only require more resources to manufacture, but rely on electricity generated elsewhere effectively merely displacing pollution. To many on the left, political correctness trumps environmental responsibility. Should all disabled Indians drive specially adapted cars? Maybe that's a big untapped growth market. Suggesting paraplegic Indians make do with mere wheelchairs could lead to accusations of racism and intolerance of the physically disabled. As it happens big business loves green solutions where it sells. Big business does not market gas-guzzlers because they pollute, but because they drive profitable consumption. If they could sell solar-powered helicopters made of recycled paper, they would, but such vehicles are pure fantasy. Likewise if the earth had bountiful supplies of abiotic oil below its crust or wind energy could power millions of irons, washing machines and fridges with minimal investment in wind farms, then why would they be pursuing environmentally risky and expensive strategies like hydraulic fracturing or deep-sea drilling ?

A pragmatist may seek a compromise between a maze of multilane highways and shopping malls and a Quixotic return to an idyllic agrarian age of green fields, windmills, hardworking peasants and horse-drawn carts. However, an unlikely coalition of corporate lobbyists and wishful thinking leftists would like to have their cake and eat it. They want to see our economic numbers continue to grow, but believe technological innovation can lessen our collective impact on our precious environment. So we can allow more people to drive more cars to bigger supermarkets making bigger profits and offering better products, but still have a greener environment. Indeed in such an optimistic scenario greenness just becomes another commodity one can purchase. A two-bedroom flat sandwiched between a motorway and a high-speed railway line is usually much cheaper than a similarly-sized apartment in a quiet suburb overlooking a park. Likewise a few million quid, bucks or Euros can buy you an exclusive villa in verdant surroundings complete with solar panels and its very own wind turbine. The rich love greenery and who can blame them ? As the world become more crowded and climate disruption makes many regions uninhabitable, we can expect unspoilt nature to be a luxury only the hyper-rich can enjoy.