Category Archives: Economic

Britain, Economic, European Union, Government, Politics, Society

Addressing corruption in the EU is an urgent matter…

EUROPEAN UNION

Intro: Corruption throughout the EU is endemic. It needs urgent and effective attention

In southern and eastern European countries corruption is much more widespread than it is in Britain.

Cecilia Malmström, the EU’s Home Affairs commissioner, estimates that across the EU, the amount of money paid in bribes and racketeering may add up to more than a £100 billion.

This is a staggering sum of money. The estimate given is based on surveys of people who were asked whether they knew about specific cases of having to pay a bribe and what their general perceptions of the problems of corruption in their country were.

In the UK, less than 0.5 per cent of people had either experienced, or knew of, an instance of bribery, the lowest percentage in the EU’s member states. This compares extremely favourably to respondents in Croatia, the Czech Republic, Lithuania, Bulgaria, Romania and Greece, where between 6 and 29 per cent of those questioned indicated  that they were asked or had been expected to pay a bribe in the last 12 months.

Yet, the perceived rates of blackmail and extortion related activities in the UK compared to others in the EU are much closer. Even in Britain, where the actual rates are deemed low, 64 per cent of people think corruption is widespread. Across the EU, an average of 74 per cent believes this is the case. In Greece, the perceived rate rises to an astonishing 99 per cent.

The gap between actual experience of corruption and perceptions of it can be accounted for by the widespread publicity which is given to instances of political corruption and the attention which is drawn to interest and exchange-rate fixing scandals still emerging from the financial industry (such as LIBOR, the price of oil and, more worryingly, the true value of gold).

In those countries with the highest experience of financial bribery, most instances relate to healthcare. This has stemmed from the inadequacy of public health provision which has led people to bribe and blackmail doctors to secure early treatment of illness.

Ms Malmström, a Swede, asserts that stamping out corruption is not the responsibility of the European Commission. Rather, she says, that responsibility lies with national governments, on whom she is calling to do more. She is certainly right to argue that instances of bribery is not just draining resources from legal activity and feeding criminality, but that such activity is also undermining the trust that the public has in democratic institutions.

What is more, however, is that in the UK the report’s findings may well have the unintentional consequence of further eroding the fragile belief in the EU. Whilst this report makes clear that the Commission’s own anti-corruption unit is under-resourced and has a vast swathe of fraud allegations in EU spending it will never likely investigate properly, the unit has long been the subject of reports of incompetence and irregularities in the management of its own budget.

Rectifying this situation should be an EU priority. But the EU’s bribery report may well have the effect of colouring the view that many Britons already have – that it is even more corrupt than they ever thought. It is right to ask if British taxes which flow to the EU are being wasted or, worse still, whether they are being harnessed to feather criminal nests and extortion rings.

The possibility exists in the UK for an in-or-out referendum on British membership of the EU in 2017, following the pledge given by the Prime Minister since he has held office. But, this recent EU report will only confirm Eurosceptical prejudices. For Europe to be cleansed of endemic corruption, the European Commission must act with a degree of urgency and effectiveness in dealing with the issues that underpin it.

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Britain, Business, Economic, European Union, Government, Politics, Society

UK firms need direction over EU reform…

EU REFORM

Since the start of the year the row over Europe has intensified.

From speeches to signed letters, the Europhiles and Europhobes have played out and made known their disagreements in front of the press and media.

There is no doubt that renegotiation and reform of the EU is necessary. The majority of businesses are determined to see a revamped relationship.

But it has been a year now since the Prime Minister first announced his intentions on Europe, and UK firms are no clearer as to what this means in practice.

Maintaining the status quo and tinkering with some of the existing bureaucracy might seem attractive for some, but it is simply not realistic.

The eurozone, for one, is rapidly moving off in a direction of its own making. Through inter-governmental agreements – fiscal, banking and ever-greater political union – the single currency bloc is set to leave out other EU countries. Specific trading blocs between EU countries within the eurozone are likely to emerge, dismantling the free market as we understand it.

Such an outcome is hardly desirable for British firms. In a survey of over 3,000 businesses last September, only 7 per cent felt this would offer a positive future. Some 57 per cent said that re-calibrating the UK’s relationship would have the most positive impact on Britain’s business and economic interests.

On this basis, the Prime Minister has a clear mandate from business to try and rebalance Britain’s relationship with the European Union.

Even though companies are trading with the wider world, the cold hard truth is that the EU remains a significant trading partner. EU membership grants Britain advantageous access for the sale of goods and the movement of capital and people across national borders.

Firms want to remain in the single market and see it widened and strengthened, to include, for example, the services sector.

So if the Government is to succeed in reform it is vitally important we seek allies within the EU who have a similar desire for change.

It is equally important, too, that the EU knows that the UK is prepared to leave by taking its chances with faster-growing economies. A cacophony of doom regarding the consequences of exist is both irresponsible and misleading, and would undermine the negotiating position of those seeking to enact reform.

Leaving the EU is certainly not the preferred outcome for most businesses and would be very disruptive, but disruption creates opportunities as well as threats. Our ongoing trading relationship with the EU would be influenced positively by the exist negotiations, not least given the massive current deficit the UK has with the EU.

Regulations from Brussels have long been a millstone round the necks of British firms, in spite of the recent reduction in red tape.

Some will want to see action on areas such as employment law, health and safety, and regional development. Others will be hoping for changes in areas like justice and home affairs.

Whilst the Government has indicated that it is serious in its intentions, what remains in doubt, though, is what will constitute a win for the British people. So long as the Government fails to specifically announce what areas it will seek to renegotiate and what the reforms will look like, the government’s rhetoric will be perceived as an act of political opportunism right through to the 2015 general election.

UK business needs as much certainty as possible to provide the landscape on which to build long-term, sustainable growth. This is needed if a revival of our economic fortunes is to be realised.

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Arts, Britain, Economic, Government, Politics, Society

Transformational leadership is needed for a re-moralising of politics and society…

A NEED FOR THE MORALS OF POLITICS TO BE RE-EXAMINED

Intro: The desire for transformational politics is high given the moral challenges of today

We often hear people say that politicians are ‘all the same’, which infer a general objection to our technocratic, managerial political culture. During 2013, figures from outside the Westminster bubble unearthed a public yearning for leaders with the moral and ethical clarity to face many of our present woes.

The greatest need for moral leadership is at its peak during times of economic scarcity. The financial crisis of 2008 and the years of austerity that have followed have returned to the fore the ethical questions that were too often set aside and ignored during the pre-crash era. Political and economic questions such as, ‘How should limited resources be allocated?’, ‘What constitutes the good society?’, ‘What are the values that should underpin our economy?’, or, ‘Can individualism and the common good be reconciled?’ The public disillusionment with our political leaders and what their parties stand for can partly be explained by their direct failure to address these issues more convincingly. When politics is reduced to a game, and when party strategists continually seek to outmanoeuvre each other for short-term tactical advantage, it is unsurprising that the public turns away. The frequent cliché that they are ‘all the same’ is not an attack (as is often thought) on a perceived lack of policy divergence, but on the managerial and technocratic culture that political parties embody.

Behind such public apathy and disillusionment, there is a craving for answers to the moral challenges of our time and for national leaders who can at least attempt to provide them. The recent death of one of the world’s most respected statesman, Nelson Mandela, has made this even more so.

Noticeably, however, one of the trends of 2013 was the emergence of leaders outside the political circle who have shown considerable moral guidance. Pope Francis, for example, has revived his Church’s spiritual fortunes by reorienting it away from the conservative obsessions of same-sex marriage, abortion and contraception and towards issues of economic equality and social justice. Pope Francis has made a number of emblematic gestures since becoming Pontiff last March, including humble acts such as carrying his own suitcase, living in a modest hostel as opposed to the rich grandeur of the Vatican palace, the embracing of a disfigured man, and has communicated his vision of a church ‘of the poor, for the poor’. The moral denunciation by Francis of ‘unbridled capitalism’ has resonated all the more as a result of his church’s changing stance and position. After decades of steep decline, church attendance among Roman Catholics has risen significantly across the world, including in Britain too.

The Archbishop of Canterbury, Justin Welby, who was enthroned two days after the inauguration of Pope Francis, has, over the same period, reaffirmed the Church of England’s status as ‘a defender of the most vulnerable.’ He has openly condemned the coalition government’s welfare cap on benefits and for making children and families pay the price for high inflation, rather than the government. Mr Welby has denounced the usurious lending of payday loan companies and has been equally critical of banks in their desire to continually seek what is ‘legal’ and never what is ‘right’. Like Pope Francis, the Archbishop of Canterbury has demonstrated his Church’s values through deeds as well as words.

One need not share their faith to respect the moral clarity that both religious leaders have brought to issues of economic justice. There have been others, too, such as the comedian Russell Brand, who provoked a remarkably successful debate with his insistence that the solution to deepening inequality and rampant consumerism has to be primarily ‘spiritual’ and his declaration that profit is ‘the most profane word we have’, commanded public attention for almost a fortnight in a way few politicians can.

Whilst not standing for public election, neither the Pope nor the Archbishop of Canterbury faces the same kind of struggles to reconcile competing interests as many of our politicians must contend with. The political class can learn, though, from how they have engaged with fundamental questions and how previously dormant debates have been actively revived.

Some of our more thoughtful MPs from across the political spectrum have recognised the need for a different kind of politics. Jon Cruddas, Labour’s policy review co-ordinator, for example, called for a ‘reimagined socialism’ in his George Lansbury Memorial Lecture in November. Mr Cruddas called for a type of socialism that is ‘romantic, not scientific; humane and warm; passionate yet humble’ and one that ‘pushes back against party orthodoxy, careerism and transactional politics’.

The re-moralisation of our politics and society remains a deep desire five years after the financial crash. In leading that transformation, we still await the politician who can inspire and provide the transformational leadership many people are now demanding.

 

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