Category Archives: Economy
A call for building strong productive local and regional communities and new trade systems that fulfil human lives without wasting resources and energy
Today the Financial Times (paywall) reports that the number of foreign investment projects has dropped by 14% to 1,782 in the financial year ending March 2019, since the 2016 Brexit referendum. This is the lowest level in six years, according to a report published on Wednesday by the UK’s Department for International Trade.
As multinational profits continue to fly out of the country and taxes are evaded, we return to the valuable 2017 report by Victor Anderson and Rupert Read entitled ‘Brexit and Trade Moving from Globalisation to Self-reliance’, published and launched by Green MEP Molly Scott Cato.
“This report puts on to the political agenda an option for Brexit which goes with the grain of widespread worries about globalisation, and argues for greater local, regional, and national self-sufficiency, reducing international trade and boosting import substitution”.
Colin Hines comments: It details the need for an environmentally sustainable future involving constraints to trade and the rebuilding of local economies. On page 14, the report calls for ‘Progressive Protectionism’:
“Reducing dependence on international trade implies reducing both imports and exports. It is very different from the traditional protectionism of seeking to limit imports whilst expanding exports. It should therefore meet with less hostility from other countries, as it has a very different aim from simply improving the UK’s balance of payments. It could be described as ‘progressive protectionism’, or ‘green protectionism’“.
The report’s recommendations are summarised under three headings: the environment, globalisation and localisation (below):
- Change trade agreements to allow governments to promote greater national, regional, and local resilience.
- Shift taxes, subsidies, and public expenditure on infrastructure, away from unfairly favouring large and global companies, and redirect them to help build up local economies.
- Link banking directly to local and regional economies rather than to the international financial system.
- Boost the number of places for skills training in sectors where UK production can substitute for imports.
- bring in short-term government subsidies to invest in and develop economic sectors where UK production can be expected to substitute for imports as part of the new strategy. These would not necessarily be ‘infant industries’: they might be old sectors being revived and renewed.
- Introduce or increase tariffs on imports of goods and services, especially those where domestic production is a viable and environmentally sustainable option.
- Democratise English sub-regional devolution arrangements and reform local government finance, so as to provide for effective decentralisation of power.
The globalisation of recent decades has been very one-sided. There have been enormous benefits for large business corporations, financial institutions, and the super-rich. As smaller companies have found it difficult to compete, the multinationals have used a worldwide network of tax havens to escape from taxation and regulation.
‘Brexit and Trade’ sets put a new option for Britain. Instead of removing protective regulations against environmental threats it advocates establishing high Green standards and practical localisation measures. It would address the very real social, economic and environmental problems of globalisation, serving present and future generations well.
On Tuesday, the Institute for Public Policy Research launches its Environmental Justice Commission (EJC) and people are coming together across Conservative, Labour and Green parties to serve on it – leading figures from business, academia, civil society, trade unions, youth and climate activism.
Ed Miliband, Labour MP for Doncaster North and a former leader of the Labour party; Caroline Lucas, Green MP for Brighton Pavilion and Laura Sandys, a former Conservative MP for South Thanet, have written about this and many readers’ comments are well worth reading. Important points made are summarised below
Too often the issue of climate change seems marginal to the public’s concerns, when it is in fact central.
This will be done by committing to a Green New Deal (GND), with an unprecedented mobilisation and deployment of resources to tackle the accelerating climate crisis and transform our economy and society for all. Read more on the Green New Deal website.
Its aims are to:
- mobilise a carbon army of workers to retrofit and insulate homes, cutting bills, reducing emissions and making people’s lives better
- move to sustainable forms of transport and zero-carbon vehicles as quickly as possible, saving thousands of lives from air pollution
- end the opposition to onshore wind power and position ourselves as a global centre of excellence for renewable manufacturing
- protect and restore threatened habitats and
- secure major transitions in agriculture and diets that are essential if we are to meet our obligations.
People have been asking how we can revive communities that have been left out of prosperity. They ask whether they and their children will be able to get work and also what the quality of that work will be and what skills will be needed. ECJ believes GND has the potential to do this.
The areas of policy mentioned above answer the immediate economic concerns of people for jobs and hope. Green jobs must be secure and decently paid, with a central role for trade unions in a just transition for all workers and communities affected.
The commission will aim to help the UK to take a lead, believing that there is economic and societal advantage in doing so. An increasing number of people, young and old, see that the way we run our economy is damaging our climate, our environment and our society, but that, crucially, it is within our power to change it for the better. And change it we must.
The cartoon by Joel Pett (above), Pulitzer Prize-winning editorial cartoonist for the Lexington Herald-Leader, states that whether global warming is real or not, the proposed measures are beneficial to everyone.
On the left of the cartoon a man asks, “What if it’s a big hoax and we create a better world for nothing?” On the right the question is answered in the form of a list on a screen, showing what would be gained:
- energy independence,
- preserve rainforest,
- green jobs,
- livable cities,
- clean water and air,
- healthy children, etc., etc.
When discussing how society should respond to climate change, consensus might well be achieved by presenting this cartoon’s message.
Corbyn smears escalate
Yesterday came a warning: “With a general election possibly afoot, we must all be alert to the orchestrated dirty tricks and the ferocity of the propaganda assault that will inevitably be launched against Jeremy Corbyn and Labour by the terrified establishment”. It was issued by Richard House, after replying to ‘absurd views’ in the Independent alleging that Jeremy Corbyn would usher in ‘a communist government’ of a brutal nature.
Articles in the Murdoch Times today bore these headlines
- MPs launch angry revolt over leaders’ Brexit talks: Breakthrough hopes fade after May meets Corbyn
- Brexit talks: Dark clouds gather as Theresa May and Jeremy Corbyn work out what to do next
- The PM, as we must still call her, was numb — perhaps past caring
- Two-party cartel would regret an election now: The electorate is more volatile than ever and many will be looking for a home beyond the Conservatives and Labour.
Jeremy Corbyn’s popularity with Europe’s socialist leaders was highlighted some time ago with a standing ovation noted in the Financial Times:
“UK Labour leader Jeremy Corbyn was given a rapturous reception by his Socialist allies in Brussels on Thursday, as he warned that leaving the EU without a Brexit deal would be “catastrophic” for the UK economy. Mr Corbyn was met with a standing ovation by Europe’s centre-left parties as he addressed delegates at the Europe Together conference, just hours before prime minister Theresa May was scheduled to meet her EU counterparts at a European leaders’ summit”. We omit the description of Ms May’s very cool reception.
Corbyn’s negotiating skills are appreciated by senior EU figures, including Michel Barnier.
EU Brexit negotiator Michel Barnier (R) and British Labour Party leader Jeremy Corbyn walk prior to a meeting on July 13, 2017 in Brussels.
Another perspective: Jeremy Corbyn is a mainstream [Scandinavian] social democrat
“From his style to his policies Mr Corbyn would, in Norway, be an unremarkably mainstream, run-of-the-mill social-democrat. His policy-platform places him squarely in the Norwegian Labour Party from which the last leader is such a widely respected establishment figure that upon resignation he became the current Secretary-General of NATO.
“Yet, here in the United Kingdom a politician who makes similar policy-proposals, indeed those that form the very bedrock of the Nordic-model, is brandished as an extremist of the hard-left and a danger to society”.
British media’s portrayal of Corbyn, and by extent his policies are somewhat exaggerated and verging on the realm of character assassination rather than objective analysis and journalism.
Mr Corbyn’s policy-platform, particularly in regard to his domestic policies are largely identical with the Norwegian Labour Party manifesto. They enjoy near universal support among the Norwegian electorate and, in fact, they are so mainstream that not even the most right-wing of Norwegian political parties would challenge them. They include:
- railway nationalisation,
- partial or full state ownership of key companies or sectors,
- universal healthcare provisions,
- state-funded house-building,
- no tuition fee education,
- education grants and loans
Jonas (right) adds that such policies have been integral to the social-democratic post-war consensus in all the Nordic countries, which. enjoy some of the world’s highest living standards and presumably should be a model to be emulated rather than avoided, and continues:
The whole controversy surrounding Mr Corbyn probably betrays more about Britain’s class divisions and how far the UK’s political spectrum has shifted to the right since the early-1980s, than it does of the practicality of his policy-proposals.
Reflecting this is British media whose ownership is highly concentrated: 70% of national newspapers are owned by just three companies and a third are owned by Rupert Murdoch’s News UK . . . the British media has focused its reporting on the personal characteristics of Mr Corbyn, usually in rather unflattering terms, and shown scant or shallow regard to his policy-agenda.
He notes that a direct comparison of Britain with other similar European states would reveal both the dire condition of British living-standards for populations, particularly outside London and how conventionally social-democratic are Mr Corbyn’s policies.
Jonas Fossli Gjersø ends: “You might agree or disagree with his political position, but it is still far too early to discount Mr Corbyn’s potential success at the next general election – particularly if he manages to mobilise support from the circa 40% of the electorate who regularly fail to cast their ballot in elections…
“(J)ust as few recognised the socio-economic and ideological structural changes which converged to underpin Margaret Thatcher’s meteoric rise in the early-1980s, we cannot exclude the possibility that we are witnessing the social-democratic mirror image of that process today, with a prevailing wind from the left rather than the right”.
Aditya Chakrabortty focusses on the ‘vast disconnect between elite authority and lived experience, central to what’s broken in Britain today’ – the ‘gap’ which widened as independent working class self-help initiatives were replaced by the ‘hand of the state’ (Mount) creating ’a new feudalism’ and from two searing analyses of our divided society (Jones).
- “Why is a stalemate among 650 MPs a matter for such concern, yet the slow, grinding extinction of mining communities and light-industrial suburbsis passed over in silence?
- “Why does May’s wretched career cover the first 16 pages of a Sunday paper while a Torbay woman told by her council that she can “manage being homeless”, and even sleeping rough, is granted a few inches downpage in a few of the worthies?”
- Is “the death sentence handed to stretches of the country and the vindictive spending cuts imposed by the former chancellor George Osborne, a large part of why Britain voted for Brexit in the first place?”
“We have economic policymakers who can’t grasp how the economy has changed, elected politicians who share hardly anything in common with their own voters . . . Over a decade from the banking crash, the failings of our economic policymaking need little elaboration. the basic language of economic policy makes less and less sense.
“Growth no longer brings prosperity; you can work your socks off and still not earn a living. Yet still councils and governments across the UK will spend billions on rail lines, and use taxpayers’ money to bribe passing billionaire investors, all in the name of growth and jobs.”
A University College London study published last year shows that the parliamentary Labour party became more “careerist” under Tony Blair – and also grew increasingly fond of slashing welfare. Social security was not something that ‘professionalised MPs’ or their circle had ever had to rely on, so ‘why not attack scroungers and win a few swing voters?’
The trend continues: Channel 4 News found that over half of the MPs elected in 2017 had come from backgrounds in politics, law, or business and finance and more came from finance alone than from social work, the military, engineering and farming put together.
This narrowing has a direct influence on our law-making and political class and Chakrabortty comments: “We now have economic policymakers who can’t grasp how the economy has changed, elected politicians who share hardly anything in common with their own voters”.
He concludes that this is what a real democratic crisis looks like: failed policies forced down the throats of a public. Institution after institution failing to legislate, reflect or report on the very people who pay for them to exist. And until it is acknowledged, Britain will be stuck, seething with resentment, in a political quagmire.
PRESS RELEASE, 6th March 2019 from Fairness for Farmers in Europe (FFE), an open door federation of farm organisations across GB, the Isle of Man, Ireland north and south.
After their recent meeting in England, the following FFE members supported this statement: Family Farmers Association, Farmers For Action, Irish Creamery & Milk Suppliers Association, Irish Cattle & Sheep Farmers Association, Manx NFU, National Beef Association and Northern Ireland Agricultural Producers Association.
Pictured (l-r ) at Fairness for Farmers in Europe’s recent meeting at the Marriott Hotel in Gatwick– back row is Andrew Cooper General Secretary Manx NFU, John Enright ICMSA General Secretary, Tim Johnston Manx NFU Vice-President, Sean McAuley NIAPA & FFA and Brian Brumby Manx NFU President. Front row, Eddie Punch General Secretary ICSA, William Taylor FFA NI and FFE co-ordinator and Patrick Kent ICSA President.
Fairness for Farmers in Europe have delivered the following press release of their agreed statement on the strong possibility of the UK leaving the EU without a deal to Michael Gove MP, Andrea Leadsom MP, Theresa May PM, Neil Parish MP, Sir Vince Cable MP, Sir Keir Starmer MP and Anna Soubry MP with copies sent to the Irish Government, the Isle of Man Government, the Scottish Government, the Welsh Government, EU Commission President Jean Claude Juncker, Council of Ministers President Donald Tusk and European Parliament President Antonio Tajani. FFE members are copying in their MEPs and politicians where appropriate.
Fairness for Farmers in Europe (FFE) on behalf of all the family farmer members they represent across these islands, north, south, east and west, must make clear to the UK Government that it would be reckless in the extreme with the impact horrendous for agriculture and food if the UK were to crash out of the EU with no deal on 29th March.
The beef industry, to give one example across these islands is already being devastated due to uncertainty currently with price losses at the farm gate of 10%+, not to mention the add on costs to consumers from the 29th of March. A no deal on 29th March would by way of UK and EU Customs and Excise administration costs, consequential transport waiting times and WTO tariffs where applicable on lamb, milk, milk products, chicken, pork, beef, vegetables, fruit and other at the UK Northern Irish border with the EU / Southern Ireland Border, UK Dover border point with Calais French EU border and all other food importing/exporting points around and in the UK.
For the sake of commonsense we ask you to draw back from the brink – ask for more time to achieve a successful outcome if a deal cannot be reached by 29th March.
Contact: 56 Cashel Road, Macosquin, Coleraine, N Ireland, BT51 4NU
Tel. 07909744624 Email : email@example.com
Today, Times columnist Clare Foges, a former member of Boris Johnson’s mayoral team and then David Cameron’s speech writer, challenges the narrative that Brexit is down, in large part, to a high-handed and callous establishment’s neglect of the “left behind”, deploring the belief that:
”Those in poor northern constituencies and bleak coastal towns were left trailing in the gold-flecked dust thrown up by the golden chariots that bore the wealthy, the Londoners, the elite onwards — throwing back their heads to laugh heartily and pour some more Bolly down their gullets while failing to give a monkey’s about those in their wake”.
Truly, those in poor northern constituencies and bleak coastal towns were and are left trailing – but the elite do not spend time laughing at them – those people are neglected because they are simply of no interest.
She asserts that the deindustrialised towns have suffered because of globalisation or automation, not because those in government sat on their hands.
But the elite constructed, fostered and continue to be enriched by globalisation and automation – the system which impoverishes many is necessary to their lifestyle. Clare admits that “When you know that you are on the lower rungs of a socio-economic ladder that reaches, at its heights, into the realm of millionaires and sports cars and Maldivian holidays, you may well feel resentful. It must be profoundly demoralising to see swathes of your countrymen and women enjoying seemingly easy success while you struggle”.
She also concedes, “Of course there is serious poverty and inequality in our country, but over the past 20 years in particular governments have tried a thousand different policies to reduce them” but fails to mention the ways – under recent Conservative governments – in which people on low incomes and those in poor health have been harassed, ‘sanctioned’ and deprived of their due allowances, in order to make derisory savings. She adds:
“I don’t deny that the Brexit vote may have been driven in part by resentment. Yet here is the crucial point: just because people have felt cruelly neglected by the powers that be, it doesn’t mean that they actually were . . . Let us not mistake a failure to revive left-behind areas with wilful neglect. For the most part the much-traduced “establishment” has been well-meaning and hardworking in pursuit of a fairer country.”
Yes, wilful neglect does imply a degree of awareness – the correct term is indifference; ‘left-behind’ people are simply not on the radar of the affluent, preoccupied by “sports cars and Maldivian holidays”. She ends with more burlesque:
“With a more benign and interventionist establishment at the helm, the taxes of rich people could be spread thickly all over the country with no fear that wealth will flee; billions could be borrowed for major infrastructure projects with no damage to our economy; the streets of Grimsby and Oldham would be paved with gold. By giving this impression, we are inviting people to vote for Jeremy Corbyn and his fantasy economics”.
But would those in government circles – who benefit from corporate sinecures, stock exchange speculation and commodity trading – be willing to change the globalised system for one in which government invests in strengthening the economy through regional production and supply chains? Or will they oppose such changes with all their might, to maintain their current privileges?
Government has pledged that all UK coal-fired power generation must end by 2025 and it accounted for less than 7% of UK power generation last year. That helped to push down UK carbon emissions to levels last seen in 1890 and to cut greenhouse gases faster than most other developed economies.
It is startling – in view of the government’s pledge – to learn that coal is still being imported from Russia, Colombia and the United States. GEGB engineers in the 70s complained about the imports of inefficient ‘dirty’ coal from Eastern Europe whilst good quality British coal was being stockpiled.
Muir Dean – one of many open cast mines closed in 2016
It is even more startling to read that a local coal mining company, Banks Group, which mothballed its Rusha mine in Scotland early because it couldn’t get a good enough price, has applied to extract coal from land behind the sand dunes of Druridge Bay (below). The social, economic and environmental objections received were deemed ‘insignificant’ by Justice Ouseley in the High Court.
The planning application submitted by Banks Group was approved by Northumberland County Council in July 2016. In September the plans were put on hold subject to a government inquiry. In March 2018, the proposal was rejected by the Communities Secretary Sajid Javid, citing among other environmental reasons the “very considerable negative impact” the opencasting would have on greenhouse gas emissions and on climate change, as well as on landscape and heritage assets.
The high court over-ruled Sajid Javid’s decision in November and James Brokenshire, the minister for communities and local government, is to re-examine the application.
Gavin Styles, managing director of Banks, had described Mr Javid’s decision as perverse and political: “the government . . . has now demonstrated that it would prefer to source the coal that is essential for a variety of important industries across the UK from Russia or the US, rather than support substantial investment and job creation plans in our region.”
Anne Harris of Coal Action Network, which is fighting Banks’s plans across the north-east, said: “If James Brokenshire approves this scheme at Highthorn, he’s showing the government has no intention of meaningfully following through on the 2025 coal phase-out. It would mean the concerns and opposition of people in the area are being ignored for a coal company that’s trying to grab resources and run.”
All sides have submitted their case to Brokenshire, who will begin his deliberations on Friday.
A year ago, Colin Hines and Jonathon Porritt challenged the “permanent propping up of whole sectors of our economy as a direct result of our failure to train people properly here in the UK”.
They called for the training of enough IT experts, doctors, nurses and carers from our own population to “prevent the shameful theft of such vital staff from the poorer countries which originally paid for their education”.
Mass migration from developing countries deprives those places of the young, enterprising, dynamic citizens they desperately need at home
Dependence on the free movement of peoples as practised in the UK is the opposite of internationalism, since it implies that we will continue to employ workers from other countries in agriculture and service industries and steal doctors, nurses, IT experts etc from poorer countries, rather than train enough of our own.
Many individuals who migrate have experienced multiple stresses that can impact their mental well-being
Professor Dinesh Bhugrah is an authority on the stresses of migration. Years of research have revealed that the rates of mental illness are increased in some migrant groups. Stresses include the loss of the familiar, including language (especially colloquial and dialect), attitudes, values, loss of cultural norms, religious customs, social structures and support networks.
Porritt and Hines advocate – like former Chancellor Merkel – a redoubling of our commitments to improve people’s economic and social prospects in their own countries, tackling the root causes of why people feel they have no choice but to leave family, friends and communities in the first place.
They advocate the replacement of the so-called free market with an emphasis on rebuilding local economies . . . dramatically lessening the need for people to emigrate in the first case. Hines gives a route to localization in his classic: Localization: a global manifesto, pages 63-67.
The seven basic steps to be introduced, over a suitable transition period are:
- Reintroduction of protective safeguards for domestic economies (tariffs, quotas etc);
- a site-here-to-sell-here policy for manufacturing and services domestically or regionally;
- localising money so that the majority stays within its place of origin;
- enforcing a local competition policy to eliminate monopolies from the more protected economies;
- introduction of resource taxes to increase environmental improvements and help fund the transition to Protect the Local, Globally;
- increased democratic involvement both politically and economically to ensure the effectiveness and equity of the movement to more diverse local economies;
- reorientation of the end goals of aid and trade rules so that they contribute to the rebuilding of local economies and local control, particularly through the global transfer of relevant information and technology.
Since that book was written, a gifted group of people set out the Green New Deal which – though aimed initially at transforming the British economy – is valid for all countries and most urgently needed in the poorest countries from which people feel impelled to emigrate.
Funded by fairer taxes, savings, government expenditure and if necessary green quantitative easing, it addresses the need to develop ‘green energy’ and ‘energy-proofing’ buildings, creating new jobs, a reliable energy supply and slowing down the rate of climate change.
Senator Bernie Sanders and Alexandria Ocasio-Cortez, the youngest person ever to be elected in Congress, now advocate a Green New Deal in the US.
Professor John Roberts, in one of the newsletters posted on http://www.jrmundialist.org/ says: “Increasingly my thoughts return to the overwhelming need for all of us to think (and then act) as world citizens, conscious of a primary loyalty not to our local nationalism but to the human race (however confused and divided) as a whole”.
Jonathon Porritt quotes Alistair Sawday: “I remembered that the skills and the policies to reverse the damage are there; it is a matter of will – and of all of us waking up.
António Guterres, Secretary-General of the United Nations, which has developed urges all to work to “…Narrow the gaps. Bridge the divides. Rebuild trust by bringing people together around common goals. Unity is our path. Our future depends on it.” –
Jeremy Corbyn addressed the General Assembly at the United Nations Geneva headquarters last year. He concluded:
“The world’s economy can and must deliver for the common good and the majority of its people. . . But let us be clear: the long-term answer is genuine international cooperation based on human rights, which confronts the root causes of conflict, persecution and inequality . . . The world demands the UN Security Council responds, becomes more representative and plays the role it was set up to on peace and security. We can live in a more peaceful world. The desire to help create a better life for all burns within us. Governments, civil society, social movements and international organisations can all help realise that goal. We need to redouble our efforts to create a global rules based system that applies to all and works for the many, not the few.
“With solidarity, calm leadership and cooperation we can build a new social and economic system with human rights and justice at its core, deliver climate justice and a better way to live together on this planet, recognise the humanity of refugees and offer them a place of safety. Work for peace, security and understanding. The survival of our common humanity requires nothing less”.