thinking liberal – Page 58 – Matthew Green's blog

#indyref – now is the time for more democracy, not political manoeuvres

So Scotland voted No to independence, and by a margin of nearly 11%. That’s a big relief. A Yes vote would have ushered in three or more years of hard negotiation and uncertainty that would have served no very useful purpose. But what next? There are signs that the political elites both sides of the border are on manoeuvres. But I am backing the Electoral Reform Society’s call for a Constitution Convention. There is a link where you can sign up here – though this is confused by a focus on just Wales; I hope they get their act together o this.

The story so far. Though Scotland voted No, this was only after the main Westminster party leaders, and the hero of the No campaign, former UK Prime Minister Gordon Brown, all promised to deliver Scotland further devolution and protect their funding settlement. Some refer to this off as Devo Max – but others say it falls short of this ideal, whereby the Scottish parliament would be responsible for everything but defence and foreign relations. This promise has to be delivered – but it destabilises the constitution of the UK as a whole.

In particular the Prime Minister, David Cameron, has said that reforms must take account of English government. By this he means the problem that Scottish (and Welsh and Northern Irish) MPs vote on domestic English matters, while having no equivalent powers for their own regions. The Conservatives spy an opportunity to embarrass the Labour Party, who may depend on Scottish and Welsh MPs to deliver their party programme in England. Many Tory MPs are talking a lot of sense (for example John Redwood in the FT) – and this not something I say lightly. But opportunism is not a solid basis for a robust constitutional settlement. Most thinking is half-baked, because we have not had a proper period of deliberation on the matter.

It is right that MPs are asking about the wider constitutional settlement. But it is wrong to neglect the process of democracy. One of the energising aspects of the Scottish vote was that it involved voters in an important decision. The turnout was very high (85%) by our normal standards – securing a level of political engagement that has been most unusual. Any constitutional settlement for the UK needs to similarly democratic, even if it cannot hope to reach such heights. There needs to be a deliberative process that draws people in, a Constitutional Convention, followed by one or more referendums across all of the UK. The Westminster elite don’t seem to want this; the Edinburgh elite seem no better. They don’t want a process that they can’t control. They want a platform for point scoring, not a process of consensus building.

But these are hard questions, which are not susceptible to quick political fixes. If we don’t opt for a proper deliberative and democratic process we are in danger of lurching from one constitutional crisis to the next.

UK constitution: Westminster’s elite still doesn’t get it

“Nor do the English seem to want any kind of devolution for themselves”. Thus does this week’s Economist dismiss any chance of far-reaching constitutional reform for England and the UK as a whole. It offers a couple of tepid ideas as “promising” ways forward to relieve the tension. A committee of English MPs to vet legislation in parliament; devolving more powers to city regions in England. An English parliament or giving English regions equivalent powers to those mooted for Scotland, if it votes No, are dismissed as too difficult, in the absence of a serious clamour from the voters. I have every reason to believe that the thinking expressed in this article is typical of Westminster politicians in the Conservative, Labour and Liberal Democrat parties. If something doesn’t feature amongst the top issues that voters highlight as concerns to pollsters, it’s not worth worrying about.

This, of course, is exactly the type of short-term thinking that got them into a mess with Scotland – which may very well vote to separate from the UK this week. The politicians checked the opinion polls, and there didn’t seem to be too much to worry about. They did not have the imagination to see that the separatists would cash in on the national disillusionment with politics. They cannot understand that the current national mood gives politics an inherent instability that the normal polling will not help them with. As the public yearns for leadership, all they get is followership.

It reminds me of those doomed companies, who once ruled their world, and who thought that product development was a matter of following market research. Nokia, Blackberry or Kodak, for example (there are plenty of non high tech examples – but it is difficult even to recall their names now). Like these doomed businesses Westminster politicians (and their many hangers on) do not want to do anything that might upset their existing ecosystem too much. Or to put the business parallel in better perspective, if Apple had followed market research, it would never have invented the iPod or the iPhone. Or IBM had to pull its existing business apart in order to survive and prosper as the world changed. Unfortunately the professionalization of politics does not make politicians immune from the same sort of progressive entombment that overcomes big businesses from time to time. There are times when it pays to be visionary and move ahead of public opinion.

Britain is lurching from one constitutional crisis to another. If it isn’t Scotland leaving the Union, it will be the UK leaving the EU. Quite possibly it will be both. The Westminster machine is quite likely to get bogged down in years of negotiation to unpick highly complex constitutional, financial and trading arrangements, which will advance solutions to the substantive problems of the economy, public services and national security not at all. By avoiding proper constitutional reform because voters don’t mention it to pollsters, they may in fact find their lives dominated by constitutional problems as a result of referendums conceded too easily.

Britain needs a new constitutional settlement to distribute political power to its most appropriate level. This means more than devolution. The word conjures the picture of a superior power throwing scraps to the lower orders. We should think of power residing with the people, and delegated upwards to the most appropriate level – and not devolved downwards. When a US city wants to build a metro system, it just goes ahead and does it, subject only to its power to raise taxes, fees and loans. If a British city tries, it has to grovel to several central government departments for permission, with the all-powerful Treasury liable to squash the whole thing with a shrug. Westminster is prepared to tweak this system a bit, but not to change the balance of power fundamentally. When they do offer concessions for devolution, these are so feeble that they fail to command popular support.

It is time to stop the sleepwalking, and for our leaders to wake up and see what is happening to our beloved country. The English may not be agitating for constitutional reform, but if they don’t get it the country will progressively come apart.

As Scotland decides, the recriminations in Westminster begin

I make no apologies for the third post in a week on Scotland’s referendum next week. A political story this big is rare. This time I want to consider Westminster’s reaction to the episode. There is, of course, shock. The story has departed from its script. And with that shock comes recrimination. This sort of reaction is only human, of course – but the reactions miss the point. Britain, with its unwritten constitution, is uniquely vulnerable to this kind of sleepwalking disaster.

The most extreme reaction comes from John Major, who was Prime Minister from 1990 to 1997, at a time when the move towards devolution in Scotland developed unstoppable momentum. He is basically saying “told you so”. He said that the whole devolution idea was a mistake, as he said at the time, and it is ending just as he forecast. Well, he is right that simply devolving power to Scotland (and Wales and eventually Northern Ireland) without considering the impact on the wider United Kingdom constitution was asking for trouble. But the resentment felt by the Scots over remote rule from Westminster was overwhelming. Something had to be done in the name of democracy. Besides, devolution seems to have been a success, for Scotland at least. Outside London and the South East Scotland is the most successful region in the UK. This kind of success is about a lot more than public subsidy. No doubt the oil industry has helped, but Scotland has seen the sort of economic dynamism that is sadly lacking in other regions of the country.

But Mr Major’s is a lonely voice. Many more are saying that it was foolish of David Cameron, and the Scottish Secretary of the time Michael Moore, not to agree to Alex Salmond’s wish for a three-way referendum, with “Devo-max” as a third option. But almost nobody outside the SNP thought that a three way referendum was a good idea at the time. I personally could not get my head around it. Referendums are a blunt instrument, not suited to complex questions. The whole thing looked like a sly manoeuvre on the part of the SNP to get more devolved powers, from which to launch a future bid to independence. If they had wanted Devo-max rather than full independence, they should have negotiated that explicitly.

A third line of recrimination, and the loudest, is against the No campaign. It is accused of being lacklustre, pessimistic and negative. It focused too much on the practical problems of separation. This is true. But negative campaigning is the Westminster way. Our politicians, advised by sophisticated professionals, find negative messages more useful than positive ones when it comes to campaigning for votes. They have two basic types of strategy: one is to rally the core vote, and the other is to swing marginal voters. Nothing rallies the core vote better than distrust of the other side. And swing voters are often cautious types who make up their mind on small things. This was certainly the view of the No campaign, which went for the second strategy, sensibly given the likely high turnout. Their polling showed that it was worries about the practicalities that was bothering the swing voters – so it addressed its energies to them. Such negative tactics worked triumphantly well in the referendum on the Alternative Vote in 2011; the No vote campaign was simply doing things the Westminster way. But that left the feeling that the argument for union was hollow at its core – something that besets Westminster’s other campaigns.

Of course what the critics are unwilling to do is look at the wider picture, and recognise the vulnerabilities of the British system of government. Our highly centralised ways are bound to cause disaffection at the periphery. Devolving spending powers faster than taxation powers is not a stable solution to this: it just sets up a tension between the central government and the devolved one. And asymmetric devolution, favouring some areas over others, creates further tensions – tending to focus the tension in some areas rather than across the country.

There is a tried and tested method for containing and managing such tensions, that almost every other democracy uses. That is a written constitution, which defines the powers clearly at each level of government, and sets out clear ways of how the balance of these powers can be changed. The constitution usually has its roots in a process of consensus building at an important, nation-defining moment, giving it moral authority.

But Westminster dislikes written constitutions. It loves the flexibility of Britain’s looser arrangements, whereby Parliament adopts the powers of a Renaissance monarch, bolstered by a sort democratic myth in place of the divine right of kings. And indeed such flexibility has its advantages. But it has vulnerabilities too. The constitution becomes a plaything of ordinary short-term politics; small changes are made that create further tensions that require more short-term changes. Or some constitutional problems are deemed too difficult, and not addressed, allowing very destructive tensions to build. Devolution to Scotland is a case of the former. Devolution within England is a case of the latter. The country sleepwalks into constitutional disasters. Scottish independence is one such potential disaster; departure from the European Union is another.

It requires some kind of national shock to give momentum to comprehensive constitutional change. The referendum in Scotland, whatever the result, is a big enough shock to set such a movement in motion. Time for a Constitutional Convention.

As Scotland debates, what about England?

The referendum in Scotland is the most interesting thing to hit British politics for a long time. Last night the unionist side wheeled in former Prime Minster Gordon Brown. Mr Brown vindicated my judgement of him last week as being a cut above our current, mediocre political leaders. But how is this drama playing down here in England? After all the outcome involves us too.

The first point is that we are bit late on the game. The Scots have been arguing about the matter intensely for many months. The English, taking their cue from their politicians and media, have largely treated the matter as a foregone conclusion for the union. Only now is the terrible truth dawning. That lack of debate has left thinking very underdeveloped. But I have detected some new trends, at least in the rather non-typical, liberal circles that I inhabit.

Firstly there is envy. People in Scotland are having a real debate and vote on something that clearly matters. If they vote Yes it will make a real difference to the ruling political elite. Usually all that seems to be at stake is the recycling of the same group of usual suspects. Scottish people are talking about the country they want to be. It’s no wonder people are registering to vote and a high turnout is expected. We aren’t getting that here. And the thought of giving that elite, not just the politicians but the media pack, civil servants and lobbyists that cling to them, a bloody nose is distinctly tempting. It becomes rather less tempting when you think that it empowers an Edinburgh political elite, who, to say the least, do not look a trustworthy bunch. But that’s another matter.

The next thing is a common hope. Surely, after a Yes vote, or the near-death experience of a narrow No vote, a shake-up will follow in England? This referendum could be good for all of us. But that will only be true if a grassroots movement, from outside the Westminster elite, demands it. That is possible, though I see no sign of it yet. That movement needs something to ask for – some sort of constitutional change – but I see no evidence of the English developing enthusiasm for that. Without a grassroots movement, Westminster will simply drop back into its usual complacency.

A further response is a rather depressing one. Without the Scottish MPs the House of Commons will be weighted much more towards the Conservatives. There is a much greater chance of a referendum on Britain’s future in the EU. For many this is just the sort of constitutional change that will shake things up – even though its outcome will be to concentrate more power amongst the Westminster elite, rather than take them down a peg. The odds of the country leaving the EU will surely rise. Actually we should be a little careful here. The environment after a Scottish Yes vote will be so different that we cannot make predictions about how political attitudes will shift. The Conservatives may not find it so easy to win in the rump UK.

But what if Scotland stays in the union? The Westminster leaders are already promising the country a greater level devolution on our behalf. But they are silent about how this will affect the rest of us in England. That is no doubt because they are hoping people won’t care enough create much of a fuss. But it leaves us with the English Question. This is referred in Westminster pompously as the “West Lothian Question”, after the very pompous former MP for West Lothian, Tam Dalyell. This is no doubt their way of trying to minimise its significance and I refuse to accept this nomenclature.

The English Question is this. If Westminster has devolved powers to Scotland, along with Wales and Northern Ireland, it means that Scottish MPs can vote on a whole range of important questions of English policy, without English MPs being able to influence the same issues in Scotland (or Wales or Northern Ireland). It is a very awkward conundrum for Westminster types, because it is difficult to deal with without undermining their own power. Their typical reaction, when it is posed, it to mutter something about it being very difficult, and then to change the subject.

How might the English question be solved? There are three lines of attack The first is to somehow stop non-English MPs from voting on English matters. This is invariably the way Westminster politicians think of solving it. But it gets very messy. How do you, precisely, differentiate between English and British affairs without an explicitly federal constitution? What if the British PM does not command a majority in England? The second appraoch is to devolve powers to local governments in England. But, to be anything like equivalent to the Scots or Welsh devolution, there would need to be some kind of regional level of government. This only exists for London, though other metropolitan areas are inching towards such structures. The regions defined for European elections and statistical purposes have no resonance with public identity and are not fit for this purpose.

The third approach it to set up a separate English parliament, and English government, leaving a federal government to govern the residual issues of the UK itself. To me this looks the most promising way forward. But it raises many questions.

But the most important point for now is that there is no consensus in England about the right way forward, and the issues have not been aired enough. The next step, surely, is to convene a constitutional convention to develop proposals, which can then be put to the whole country in a further referendum or referendums. This convention could be convened either at the English level, or for the whole of the UK. The latter, of course, is the only way of dealing adequately with how a federal level of government could work, and what to do with such institutions as the House of Lords. But the big requirement is political momentum – and it may be easier to get this at the English level, and to deal with the wider consequences later. After all this whole process was set in motion by a Scottish Constitutional Convention in the 1990s.

It is, of course, unutterably depressing that our political leaders, including the Liberal Democrats leader Nick Clegg, who should know better, are not calling for such a convention. But we English should be demanding it.

Why neoliberals will be voting Yes to Scottish separation

Scotland votes for independence or not from the rest of the UK in just ten days time. Until now the complacent Westminster establishment, politicians and media alike, hasn’t taken the debate seriously. In the last week more opinions polls have been commissioned for the Clacton by election than on the referendum question – one reason that it is hard to tell how opinion is shifting. But the Yes campaign now seems to have the wind in its sails, and Westminster has to take the issue seriously. They are completely unready. Westminster types understand why a Scots breakaway is bad for them, but are struggling to understand why it should be bad for the Scots. Or to show that Westminster complacency has been dented by anything more substantive than temporary panic. The latest idea is to promise Scotland more devolution within the UK if it votes No; but the idea of a constitutional convention for all of the UK still seems to be off limits.

And yet there is muddle on the Yes side too. Independence supporters are making real headway with the argument that separation is the best way to preserve the Scots’ social democratic heritage. Scottish people have tended to be more left leaning than the English, and treasure such institutions as the NHS and social security. But this is under threat from “neoliberals” in Westminster, who want to shrink the state and run Scotland more like Texas. A Yes vote means No to the neoliberals.

At first sight this line of argument looks plausible. Most neutrals think that separation would be financially neutral; the extra social security transfers that Scotland gets compared to England will be made up for by extra oil revenues. This being so, an independent Scotland should have little difficulty in keeping the current level of state generosity going. And anyway, look at Sweden, Denmark or Norway, notable for very generous social security, in spite of being of similar size to Scotland.

All this follows the popularity of deciding political questions on “facts”. But there are two problems with factual analysis. First factual analysis is backward looking, when political decisions must be based on the future; second is that our usual factual analysis is based on aggregates and averages – concealing important fluctuations and details within. Both issues affect any analysis of Scotland’s future prospects.

The first point is that bigger ships make for a smoother ride. Look at northern Europe’s smaller nations, from Ireland in the west (or we could include Iceland) to Finland in the east. Their economic history of the last 40 years has been marked by deep economic crises, striking deeper than anything that the UK has experienced (Denmark may be an exception, admittedly) – even as they might experience headier booms. This rougher ride makes generous provision of state services more difficult to manage over the long term. During periods of crisis governments find it difficult to borrow and they are forced to make deep cuts.

But the Scandinavian countries have achieved a generous welfare state, haven’t they? Yes, but at the cost of much higher levels of tax. According to the Heritage Foundation, the UK tax take in 2012 was 39% of income; in Finland and Norway it was nearly 44%, in Sweden nearly 46%, and in Denmark it was 49%. Funnily enough Scotland’s First Minister Alex Salmond’s main idea for economic growth is to reduce taxes, modelling his policies on Ireland (2012 tax take nearly 31% and a weak welfare system to match). Danish welfare based on Irish taxes doesn’t add up.

But can’t Scotland just follow the Danes and Swedes and ratchet up taxes? Ignoring the economic issues with this (which these states have managed to overcome), the political tide in Scandinavia is rightwards. It seems that the higher taxes were acceptable to homogenous, inward-looking societies where people were less worried about freeloaders – but that the pressures of a modern economy undermine that. Surely Scotland will find it impossible to recreate the conditions of a past Scandinavia; it will be politically hard to raise taxes.

And meanwhile Scotland faces the same demographic challenges of an aging population, and rising healthcare costs, as the rest of the developed world with the added challenge of having to reallocate jobs, infrastructure and taxes as its oil resources are depleted.

Scotland faces a much more bracing climate as an independent country than within the UK. This is not a bad thing in itself, of course. It will help the Scots break out of a victim culture, where too often problems are blamed on the English. But the political movement that will most welcome this state of affairs is that despised breed: neoliberals. Independence would give them a shot in the arm. Scotland’s cherished social democracy depends on being part of a larger system of taxes and transfers that absorbs shocks more easily, and makes financing on world markets easier. Big states are more sustainable in big countries.

Would a Miliband victory be good for the Lib Dems?

Here’s a paradox. Britain’s political party leaders are the most mediocre, as a set, that I can remember. At least in 2010 we had Gordon Brown: a disastrous prime minister, but one who at least had the moral authority to help lead the world from economic disaster in 2009. But next year’s General Election looks to be the most interesting contest for a very long time. The shame for Liberal Democrats like myself is that we are bit part players, hoping to hang on to most of our parliamentary seats, but without playing much part in the national debate. But the rise of Ukip means that three-party dynamics remains potent. But perhaps the Lib Dems longer term prospects are better?

To start with, we have an unknown effect from the Scottish referendum later this month. Whatever the result, this will surely change dynamics north of the border in ways that it is difficult to predict. The Westminster elite hardly dare confront the possibility of a Yes vote, though the race is tightening and this is a real possibility. They have contented themselves with promising extra devolution for the Scots, without addressing the implications for England. If the Yes result comes, the Westminster politicians will have nobody but themselves to blame.

The constitution of the UK (note this not a “Scots question” – it affects us all) remains the most important issue hanging over our politics, including next year’s election. But for a moment I want to join the Westminster chatterers and put this to one side (the chatteres’ favourite website politicalbetting.com seems to think that the forthcoming Clacton by-election is more important than the referendum), and consider other dynamics.

Over the summer the Conservatives had looked quietly confident, and I shared that confidence on their behalf. They faced a strong challenge from Ukip, whose message appeals to many of their activists, but they seemed ready for that. David Cameron’s promise of a referendum on the EU is highly credible, and it is good bone to throw to potential Ukip defectors. Meanwhile they can promote scare stories about letting Labour in, and also blame the government’s more unpopular policies (to the right) on their coalition partners, the Lib Dems. The Euro election results in May seemed to support this confidence; Ukip were rampant, but Labour’s performance outside London looked lacklustre. Ukip were as much a problem for Labour as the Tories, and Labour’s message to Ukip supporters was (and remains) confused, unlike the Tory one.

Alas for the Conservatives their plan seems to be falling apart. The Tory MP for Clacton, Douglas Carswell, defected to Ukip, resigned his seat, and has caused a by election which he intends to contest under his new party’s banner. Clacton is a stronghold of the disaffected, white, aging, excluded working classes that is Ukip’s core constituency; a victory for Ukip looks certain. This gives Ukip real momentum. But, worse, it emphasises the divisions within Tory ranks between the more sensible moderate types represented by David Cameron, and what liberals regard as a lunatic fringe, whose strength has grown. This will encourage Tory voters to defect to Ukip, and discipline within the party to break down. That could scare off donors. Add this to the fact that the electoral system is weighted against the Conservatives, and they party’s challenge is looking steep indeed.

Which shifts the focus to Labour. That party has a clear hope that it will win the 2015 election by default. They have swept up a lot of former Lib Dem voters, and it seems certain that they will hang on to them. If the Tory vote sags because it is undermined by Ukip it looks good for the party. Labour faces its own challenge against Ukip, but generally in areas where they have very large majorities. There is an excellent article in today’s FT by Matthew Goodwin, who has been following Ukip’s rise closely. He may well be right that Ukip poses a severe long-term challenge to Labour in its northern heartlands, where its organisation is weak. But even he admits that this is more of a problem for 2020 than 2015.

So Ed Miliband’s Labour party could secure an outright majority after next election. And then his problems will really start. He is bound to disappoint his left wing supporters, including those Lib Dem defectors. The British economy remains fundamentally weak and unable to support the size of public sector that these supporters seem to feel is their birthright. There are no quick answers to this underlying weakness, and many of Mr Miliband’s ideas will make things worse, not better. Neither will he please the grumpy working class voters to whom Ukip is appealing. There will be a sense of betrayal among one group of their supporters, and panic amongst the Labour machine politicians in northern towns, who have taken their power base for granted. And the question of Scottish devolution’s affect on England will need to be faced, or, worse, the impact of Scottish independence. The party would surely be overwhelmed, rather like the Conservatives were after 1992.

But the Conservatives will not be much better off. They will remain divided between pragmatists, who lean towards EU membership, and idealists for whom the EU represents all that is bad. The party is likely either to lurch to the right or fall apart. Ukip, feeding off disillusioned Labour voters, will rise relentlessly.

You could hardly define more propitious circumstances for the Liberal Democrats, provided they stay away from any temptation to form a coalition with Labour. Labour will end up by prolonging many hated coalition policies, vindicating the party’s record in coalition. Meanwhile the rise of Ukip will create a strong anti-Ukip political backlash. As the Tories fail to contain their right, and Labour panics over its loss of working class votes to Ukip – this backlash will present a real opportunity for the Lib Dems, in a highly dynamic four-party play. This opportunity would be best exploited by a new leader. It would be ideal if this was a commonsense, well-grounded female – a Birgitte Nyborg. Alas I cannot see such a choice being available (my preference, Dorothy Thornhill, Mayor for Watford, is unlikely to be in contention). But the opportunity for a comeback is palpable.

What should the Lib Dems do now though? It has little choice but to stick to its guns in the coalition, and concentrate on winning any parliamentary seat where local strength is sufficient to make it winnable. This will mainly be about denying seats to the Conservatives. If things go very badly for the Tories, they may start to pick up some centrist voters from them generally – though that’s a long shot. But they must remember: the opportunities will be after 2015, they should do nothing that will make that comeback harder.

Interesting times indeed!

Learning from the Rotherham scandal – this should be a moment for humility

The big story in the British news media this week is the Rotherham child abuse scandal. This was occasioned by a detailed report from Professor Alexis Jay. This revealed that some 1,400 children and teenagers had been sexually abused from the 1990s by gangs in this Yorkshire town. The perpetrators were largely from the Pakistani and Kashmiri community and the victims were vulnerable white girls, many in care. Council officials and police ignored repeated reports of this abuse. Similar things seem to have been occurring in other northern towns, as well as further south. The revelations have provoked anger.

But instead of trying to understand the implications of this many-faceted issue, most commentators have used it as a battering ram to push forward their own political agendas.

The right wing agenda, promoted by the press, is to blame “political correctness”. This is because the allegations were initially treated as racist, and treated circumspectly for the sake of “community cohesion”. Implicitly they suggest that the problem was the fault of an immigrant community that was not dealt with robustly enough. Behind this lies a distinctly racist, anti-immigration agenda. But this narrative is at best incomplete. One of the main reasons that allegations were not taken seriously was that the authorities had a shockingly low opinion of the victims, who were treated as “sluts” and authors of their own fate. There is nothing politically correct about such old-fashioned, macho attitudes.

The left wing agenda is well expressed by this article by Suzanne Moore in the Guardian. This downplays the racial dimension, which she says is but one part of a much wider problem of powerful men abusing and denigrating powerless women. Perpetrators are from all races, as are the victims. She then goes on to blame the “neoliberals” for running down children’s services – in spite of providing evidence from her own experience that shows the problem dates back to well before the neoliberals got going. And you would hardly describe Rotherham’s council leaders and the South Yorkshire Police as part of the neoliberal establishment.

But while both lines of attack are self-serving, both also have a grounding in truth. The paternalist, we would say misogynist, attitudes of the rural communities from which the perpetrators were descended were part of the problem. And fear of allegations of racism clearly influenced the authorities. Abuse of young girls goes much wider than this ethnic minority, as does a reluctance for the authorities to act. Overstretch in social services hardly helps.

And it is very easy to use the scandal to go after your favourite villains. In my case it would be the Labour elites of northern cities who run their fiefs on a clientalist basis – including with the self-appointed leaders of ethnic minority groups. And weak and incompetent police leadership. There is plenty to go on for such a line of attack.

But that too would be incomplete. I think we owe it to the victims to question our own attitudes and practices, not just those of people we don’t like. A large part of the problem also lay with middle-class liberals. Getting to grips with this problem involved crossing two boundaries that we hate to cross. First is criticism of ethnic minority groups, which we fear will be seized on by racists to stir prejudice. And second, about which comment has been strangely silent, crossing a class barrier. Victims and perpetrators are largely working class, and these formed the power base of council leadership that failed to act. We are reluctant to get involved across the class barrier, and treat working class communities with general incomprehension.

And that is one reason why it took so long for the problem to be taken seriously at national, as opposed to local level. This is clear from an interview given by Andrew Norfolk, the Times journalist who eventually brought the story to light, on BBC Radio 4’s Media Show . The liberal elites did not want to know, and accused him of racism. This account is backed up by others at the fringe of the story, consider this piece by television journalist Samira Ahmed.

The lesson is this: we are all part of the same, cosmopolitan community. We should not let the barriers of class, religion or ethnic heritage stop interchange and conversation, based on facts. Showing respect is not about treating people with kid gloves and not asking too many questions. We should be open to criticisms of our own values and practices; but we should not be shy of challenging others in an appropriate way. And above all, no individual, of whatever class or ethnic origin, should be treated as “trash”. Even if we don’t like them.

The revenge of the 50-somethings. Is this why productivity is sinking?

Last weekend I met up with a number of other 50-somethings. Only one of us was still working. The universal advice to her was that she should stop as soon as she could. It wasn’t worth it. Anecdote is no substitute for serious analysis, but it can offer some interesting insights. Economists usually ignore the idea of satiation – that enough is enough – because this wrecks their mathematical models. But it is a growing fact of life in the developed world, and one reason why it is unrealistic to expect everlasting economic growth.

Of course, many 50-somethings are not as lucky as me and my friends. They have inadequate pensions and other savings; they are forced to keep working, and may well have to do so long after their state pension kicks in at 65 to 67. There were two common factors to our group: no children and property ownership – though by no means all of us had had well-paid jobs. There are plenty of others in the same boat, even if we are a minority.

What was striking was how we had found that work had become demoralising, across a spectrum that covered high-flying project management through to ordinary clerical. And looking for new jobs is even worse. The youngsters are pushing ahead, with all their politics and superficiality. Competence and people skills are devalued compared to bluff and fast-talking. Age prejudice is rife in recruitment markets, but impossible to prove case by case. Such sentiments are largely “grumpy old man” (though most of us were female…), rather than substantive; no doubt our predecessors felt the same about us. But work used to be the centre of our lives, providing us with purpose, a social life and the wherewithal to consume.

But now we’d rather move on. Even if that means constraining our consumption somewhat – though our generation are the ones sitting on high value property, which helps quite a bit. We will retire early if we can. Many of us are winding down, into part-time work, often thinly disguised as self-employment. This pattern of reduced work level can continue until well into the 60s and even beyond.

Is this showing up in the economic statistics? This is difficult to say. Overall workforce participation is increasing, including the older age groups. This suggests that the number of people who have dropped right out of the workforce is less than those who struggle on after retirement. But the number of self-employed has been rising sharply, and we have what economists call the productivity puzzle. Labour productivity is not rising in the way technological progress suggests it should. Perhaps the winding-down of the 50-somethings is part this.

Economists stress about this. They had assumed that steady economic growth, arising from improved productivity, was simply a law of nature. When growth fails to materialise, they condemn this as a policy failure, looking to fiscal or monetary policy to correct it. But when low growth arises from free choices made by the public to produce and consume less, this is not a policy failure. But it does create policy problems – especially over the affordability of debt. It would be better for all if economists would stop whinging and help us to understand and address these policy challenges. Low growth future is here to stay. Because that’s what people want.

The Arab world must find its own way

Two weeks ago I wrote a long essay on Israel, which focused mainly on the Israeli government and its wider network of support. But Israel is simply an actor in a wider drama centred on the Middle East. Today I want to look at this wider drama, and to focus on the Arab world. That is because this drama has drawn in the Western democracies, and we need to see a bigger picture. My main message is that we must find a way of stepping back, and letting events take their course, apart from clear humanitarian interventions.

Who are the Arabs? The narrow definition encompasses the native peoples of the Arabian peninsula, and their descendants, such as the Bedouin tribes that are scattered across a wider area. But I will opt for the wider version, for whom the Arabic language and Islamic religion are the defining characteristics. These are spread across North Africa from Morocco to Egypt, and then through “Greater Syria”, which includes Iraq, Syria, Lebanon, Jordan and Palestine, and then, of course, the Arabian peninsular.

The heyday of these Arabs was an era that I will loosely call the Caliphate, when, in the Middle Ages the Arabs could claim to be the centre of the civilised world. They constituted an empire ruled by people who could trace their succession back to the great Prophet. This empire collapsed, most notably with a Mongol invasion and the sacking of Baghdad in 1258. In due course the Arabs came to be ruled by the Turkish Ottoman empire. This empire weakened progressively through the 19th Century and finally collapsed in the First World War. It was replaced by period of European colonialism of varying degrees (deep in Algeria, largely absent in the central Arabian peninsular). The modern era begins as this colonial rule was shaken off, but succeeded by a series of states whose boundaries were defined by the colonial powers.

Things have not gone particularly well for these countries in this modern era. In spite of their great inheritance, their economic development has lagged. While they do better than the African countries south of the Sahara, Turkey and the European parts of the former Ottoman Empire have mainly done better. They have usually been ruled by strong men in highly paternalistic and corrupt regimes, with or without token references to democracy. Many have been marred by civil war, of which the worst were in Lebanon, Algeria, and, ongoing, in Syria. The western powers have been unable to resist the temptation to meddle, most egregiously with the invasion of Iraq in 2003.

These wars mark a struggle for identity after the Ottoman and colonial eras. This has two aspects in particular. The first is the obvious one that Arab countries want to become strong, prosperous countries, like their European neighbours – but have unable to do so largely through the ineptitude of their rulers. Some Arab countries are very prosperous, of course, courtesy of oil and gas resources. But high average wealth in these countries masks otherwise underdeveloped economies. This underdevelopment has caused frustration and a crisis of confidence.

Enter the second theme: the Islamic faith. The Arab world is not completely Islamic, but Islam is central to their identity. And so, with the failure of secular, nationalist dictatorships, Arab peoples have been drawn to an identity that is more explicitly based on their faith. Fundamentalist interpretations of the faith have been gathering momentum, marked by a return to traditional practices, such as the closeting of women and brutal punishments. Fundamentalism has been promoted by Saudi Arabia, using its oil wealth. This has been based on their highly traditional Wahhabism. But this has spiralled out of their control, as extremist groups, such as al-Qaeda and Isis have taken these ideas to a logical conclusion, but without reference to the Saudi state, which they regard as corrupt and hypocritical. I will call these groups Jihadis. We need to be a little careful here. The Christian equivalent of the Islamic doctrine of Jihad is a crusade. The correspondence between the two terms is rather good – conveying as it does anything from an entirely peaceful campaign to deal with mundane problems like litter, to a full-blown war. Jihad itself is a perfectly functional part of the architecture of Islam that has much positive potential. But not if it translates into eulogising violence, as the Jihadis do.

But the Jihadis are by no means the only form of militant Islam, and Wahhabism by no means the only fundamentalist one. Three other groups are worth mentioning. The first is based on the Muslim Brotherhood, a movement of Egyptian origin which includes Hamas, which rules Gaza and which is propagating war against Israel. This has its origins in the early to mid 20th Century. It has developed highly secretive practices, from generations of evading state suppression. This makes the movement particularly difficult for outsiders to grasp. One of the unfortunate aspects of this is that it impossible to take the statements of their leaders at face value. They have a long record of saying one thing and then apparently changing their minds – something which undermined their credibility when they briefly took power in Egypt under President Morsi. A further Militant movement is based on Shia Islam (all the rest are Sunni); this includes the highly effective Hezbollah in Lebanon. Shias are a minority in the Arab world (though a majority in Iraq), but they draw strength from backing by Shia (but non-Arab) Iran – and this movement is clearly well-led and effective. Finally it is worth mentioning Salafism, a Sunni fundamentalist (but not militant or Wahhabi) movement particularly strong amongst the rural poor cross North Africa. Salafists advocate a return to highly traditional Arab practices, but their methods are peaceful persuasion and politics, not the violence of the Jihadis.

Ranged against this assortment of fundamentalists and militants are the Arab strong men, who seem to be able to rally all those who fear the politicised Islamic movements. They make full use of state structures and institutions, like armies and secret police. By and large they remain in power. But at the cost of corruption, oppression and continued economic underdevelopment.

The problem for us as westerners is that there is almost no room for movements that we find congenial. Ordinary Arabs (to generalise absurdly) seem to see the western powers as part of the problem. Westerners seem both decadent and contemptuous of the Arab Islamic heritage. Their identification with Israel and colonialist days does not help. The fundamentalists see democracy as a means of seizing the reins of power, but not as a thing of value in itself. The strong men see democracy as in a similar but opposite light: a threat to their regimes.

So what are we supposed to do? The strong men are asking us for military support, because they brand the Jihadis as a terrorist threat to the West. They have support within our security services, for whom these militants are seen as the main enemy. And yet the Jihadi threat to the West seems to be diminishing. They gain little from their terrorist assaults in Western countries. They would rather their recruits came to the Middle East where the real war is being waged. Excessive Western involvement simply increases the flow of recruits. Now that our troops are finally pulling out of Afghanistan, the Western effort should mainly focus on propaganda – to show disaffected Muslims that these wars are brutal affairs that are not their business, and to persuade them of the opportunities they have as constructive members of our own societies. We need to move away from the idea of war. Funnily enough, the media savvy of Jihadis like Isis is playing to our advantage. It is easy enough to use their own material against them.

Is there hope? I think there is. As the Western powers withdraw, it is becoming clearer to Arabs that their problems are largely of their own making – and that a culture of victimhood, however much it is apparently justified, is getting them nowhere. Fundamentalist and militant Islam is step in the wrong direction. They need to forge a new understanding of the Islamic religion that is more workable in the modern world, but still confident of its heritage. One that embraces democracy, accepts diversity and celebrates the equality of women. We might call it liberal Islam. But we liberals have to be very careful. The Arab peoples need to feel that these ideas are a natural progression of the Islamic faith – and not an import. We can’t help them with that. Something like this a slowly taking shape in Tunisia, and we have to wish them well. I firmly believe that the tenets of Islam are susceptible to this form of interpretation.

The Western world must stand ready to provide humanitarian support for the inevitable series of disasters that the region faces. We should provide logistical support to any efforts that promote a peaceful resolution of conflicts. But we should back off from military interventions and seeing the Middle East as one front of a “War on Terror”. It will take time, but the Arab peoples really need to work this one out for themselves. And the sooner they understand that their fate is in their own hands, the sooner any resolution will arise.

Rethinking Liberalism 7: what are the liberal blindspots?

I started this series of essays because I thought liberalism, to say nothing of Liberalism, was at a low ebb and needed some fresh thinking. I started with the easy bits. Big questions, like the future of capitalism, but not ones that make liberals particularly uncomfortable. This is an old strategy to deal with something big and difficult. If you clean up the easy bits first, what remains looks less intimidating. But I have been a bit underwhelmed with the results, which are well within the spectrum of ideas that are regularly discussed by liberals. After a few weeks break, including a refreshing holiday, I think it is time for a change of direction.

All political philosophies have difficult bits: areas where the principles conflict with each are, or seem inadequate in the rough and tumble of the real world. Socialists want to clamp down on businesses to stop exploitation, and yet crave the tax revenues that will only come if you give businesses some serious rope. Conservatives yearn for a less intrusive government, but are annoyed when they find this gives people the freedom to behave in what they see as antisocial ways – and on which their views tend to be very narrow-minded. Liberalism is no exception. Liberals have blindspots.

I call them blindspots because most liberals behave as if these difficulties aren’t really there. Many have created a sort of alternative reality in which these problems don’t arise. Or they simply change the subject. But this is damaging in two distinct ways. First, it means that we don’t talk about many issues that bother people, and are therefore perceived to be weak or lack credibility. Second, when liberals do get their turn in government, and have to confront these intractable problems, liberal ranks are torn apart. The pragmatists are seen as betrayers of liberal principles; the fundamentalists are seen as people who will not come out of their alternative universe to confront the real world. The British Liberal Democrats in the last four years are a case study in both of these phenomena.

But even identifying what these blindspots are is hard. Because we rarely talk about them in any depth. We seem afraid of what we might find if we do. But this blogger is not running for electoral office, and so should be less frightened of tackling difficult issues. I think my time in this series is most constructively spent identifying and discussing these issues – in the hope that liberals can, in due time, work their way through them to an updated political philosophy. I feel a bit inadequate to the task. I have not read great tracts of John Stuart Mill or even Conrad Russell. But then, maybe spending so much time reading great men can be part of an evasion process.

Anyway, today I will make a start. It is time to move from the abstract. What are the liberal blindspots? Here are few problems to get us going:

Dependency. Liberals feel that people should have equal chances. Poverty is usually not a choice, but stems from some form of bad luck. So we offer help to redress the balance: cash handouts, subsidised housing, and so on. But very often this help creates a relationship of dependency between those being helped and the state. This does not worry socialists – but it does worry liberals because dependency is disempowering; it reduces freedom.
Free riding. Liberals like rights to be unconditional, since that gives individuals the maximum power. But that creates the opportunity for free riding: people who take but do not give back. Since many rights (health care, education, minimum housing standards, etc.) cost money, the opportunities for free riding are manifold. Progressive taxation, asking the rich to pay more, makes things worse. Free riders not only undermine the financial viability of entitlements, they undermine the sense of community solidarity that underpins unconditional rights.
Oppressive communities. Liberals like the idea of strong local communities. These balance the need for a strong central state. They give individuals more weight, and a greater sense of control. Members of strong local communities are generally happier than those of weaker ones. The word “community” even gets into the preamble to the Liberal Democrat constitution – the place that the party’s core values are set out. And yet strong local communities are not liberal, open places. They often promote uniformity and are hostile to outsiders, especially those from other cultures. For many liberalism is a reaction to the oppressive nature of strong communities.
Multiculturalism. This is closely linked. Often immigrants form strong local communities that don’t gel with their neighbours, and challenge liberal values. Conflict often ensues. This is a worldwide problem; neighbouring communities from different cultures may live side by side in peace for a long time, and then there is an explosion. The mechanisms of liberal democracy don’t seem equal to the task. And yet forced integration is illiberal.
Fighting crime. There are bad people out there, who have no interest in promoting a prosperous, inclusive society. They want to steel our money, or even kill us as participants in some imaginary war. These people adapt quickly to the modern world. But liberals often seem more interested in theoretical notions of privacy belonging to a different age.
Postcode lotteries. Universal rights create expectations that vital state services should be more or less the same everywhere. Strong local democracy suggests that different local communities should be able to make different trade-offs that match their own priorities and preferences. But this creates variations that are derisively referred to as the “postcode lottery” – your actual entitlements to universal rights depending on where you live.
Managing businesses. Businesses are at the heart of our society; we don’t just need them, we need them to be prosperous and innovative. This is at the very heart of any strategy to combat poverty. But liberals often see businesses as a threat, to the welfare of their employees, their customers or anybody that gets in the way. Liberals dream of cooperatively owned businesses, grounded in their local communities. And yet, valuable as such businesses may be, they do not provide a credible template for the majority of forward-looking enterprises that society needs.
Migration. Migration of people from other countries provides a flashpoint for most of the issues already mentioned. And yet it is undoubtedly a dynamic force, and a vital escape valve.

I’m sure I could go on. The agonising of liberals over events in Iraq and Israel shows liberals in a bit of a post-colonial muddle – though that affliction is hardly unique to liberals. Still we have enough to get started.

Just looking at the list of problems, I think a can see the outlines of a more general one. Liberals paint a picture of an ideal society, based on Goldilocks local communities with just the right amount of cohesion. We want all countries to follow that idea. But we also believe in universal rights; a fundamental equality of all people. And yet many of these people want to use these rights to take themselves and society in a different direction. Perhaps they have an alternative ideal; perhaps they just want to promote themselves in what they see as a rat race. We are getting to two muddled – the society we are trying to create, and the what should apply to everybody in the diverse here-and-now. And we do not address the issue of how a liberal society coexists with others made up of people who have freely chosen something different.

In this light liberals need to rethink their cherished framework of universal rights. That is what I will attempt in future essays. I’m feeling uncomfortable already. Good.