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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Government, Russia, Society

The attack in Volograd raises concerns for a peaceful Winter Olympics in Sochi…

Intro: The real threat to the Sochi Games is not a Western boycott but an Islamist terror attack

The run-up to the Winter Olympics in Sochi, which start in February, has been mired in controversy for months. Increasing the minds of politicians and athletes has been on whether they should boycott the Games in protest over Russia’s increasingly harsh treatment against homosexuals and lesbians.

The devastating suicide bombing over the weekend in Volograd, in southern Russia, is an instant reminder that the real threat to the Sochi Games is not a Western boycott but an Islamist terror attack. The blast at a railway station, which has killed at least 18 people, was not the first in Volgograd. In October, Russia identified a woman bomber from Dagestan as being responsible for a bus bombing in which five people were killed. Dagestan is one of a patchwork of small, mainly Islamic, autonomous republics in the Caucasus.

Russia has reason to be concerned for Dagestan is almost as unstable now as neighbouring Chechnya was in the 1990s. Although Russia battled a separatist insurgency there, Chechnya has never been entirely pacified. To add to the charge that Sochi is more of a threat from radical Islamists, rather than matters to do with sexuality, the leader of the Chechen rebel Islamists vowed in July to stop the Games from proceeding over the bones of its ancestors, or over the bones of many dead Muslims. The language used by the Chechen rebels is disturbing for athletes simply wishing to compete in the Games for medals.

So far, though, nothing has happened in Sochi, and the militants seem to have selected Volgograd as an alternative – maybe, because it is the nearest largest urban location north of the Caucasus.

For Vladimir Putin, he will deal with the terrorist threat by tightening a formidable range of security measures already in place around the Olympic village and event locations. Mr Putin will want to honour his previous pledge when he proclaimed in advance that the Sochi Games would be ‘the safest Olympics ever’.

Politically, whether Moscow can ever restore a lasting peace in the North Caucasus is highly doubtful. Russia simply does not have the manpower to keep all the republics in lockdown at the same time. Nor is the policy of periodically replacing stubborn local leaders with more adaptable ones necessarily an effective one.

Was Tolstoy right when he wrote that Russia is paying a delayed price for those colonial 19th-century wars which have saddled Russia with lands that it can neither absorb nor relinquish? Violence now seems par the course for radical Islamists in the Caucuses, if not in Sochi, then elsewhere.

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Britain, Business, Economic, Finance, Government, Society

The Revenue must call multinationals to account…

TAX AVOIDANCE

The relationship between the Government’ Revenue Service and how big corporations are being advised on how best to avoid paying tax is often uncomfortably close. Suspicions are such, that no sooner have civil servants finished writing a new addition to the corporate tax laws, is then quickly followed by a recruitment drive by top accountancy firms to provide ideas on how to get round it. Tax avoidance measures are costing the Exchequer billions in unpaid taxes.

The belief that HM Revenue and Customs (HMRC) has too cosy a relationship with the big multinationals has gained new credence when, just last week, a Commons select committee suggested in its report that the tax authority seems to ‘lose its nerve’ when it comes to pursuing the biggest names in business.

The chairman of the House of Commons public accounts committee, Margaret Hodge MP, said:

…In pursuing unpaid tax, HMRC has not clearly demonstrated that it is on the side of the majority of taxpayers who pay their taxes in full.

Noticeably, one of the key findings of the committee’s report was that last year the department collected less tax in real terms than it managed to collect in 2011-12, despite its stated aim of cracking down on tax avoidance. For the average man and woman in the street, who are desperately struggling through the age of austerity, this is an extraordinary state of affairs. With public services being cut at a faster rate than ever before, most people will surely find it astonishing that the corporate world is getting an easier ride than before.

There is, however, an indifferent logic behind the tendency of HMRC to strike deals that seem advantageous to the big firms. Multinational corporations hire very expensive lawyers, who invariably find a way round most of the complex tax rules. At some point, the HMRC calculation seems to be that it would rather cut its losses and do a deal than prolong the agony for an uncertain gain at some indeterminate point in the future.

That is the logic, but it is morally indefensible – especially when the tax authorities show no such leniency when it comes to wringing every last penny from the minnows of British business. Little compunction from HMRC often forces small firms to the wall, even if they are struggling to pay their VAT on time.  These small and medium sized firms (SMEs) put up less of a fight, which is why they are pursued so ruthlessly.

Taxation has to be seen to be fair. For that to be the case, the UK system needs to meet two standards. First, it is imperative we introduce new laws that massively reduce the scope for avoidance. There is a strong argument that the tax code is now too complex, and that this complexity has produced a multiplicity of loopholes that are being exploited. And secondly, HMRC needs to have the resources (and the will) to pursue multinationals as relentlessly as it pursues the country’s smaller firms.

Fairness demands that multinationals know their obligations and are obliged in meeting them.

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