Showing posts with label Miliband. Show all posts
Showing posts with label Miliband. Show all posts

Wednesday, 4 November 2015

Can Guy Verhofstadt's four steps to reforming the state help bring together progressives of all stripes?

In July, Guy Verhofstadt outlined to Alexis Tsipras the steps he believed where necessary to reform the state. Photograph: Press Conference from ALDE Communication (License) (Cropped)
Guy Verhofstadt, leader of the Liberal caucus in the European Parliament, was amongst those to congratulate Justin Trudeau on his party's victory in the Canadian general election. The former Prime Minister of Belgium praised the inspiring example set by the Liberal Party of Canada's positive campaign (Verhofstadt, 2015).

Trudeau's team sought to rise above their opponents' negative campaigning and pledged investment in much needed infrastructure - with the promised benefit of stimulating the economy - and to pursue progressive policies like a positive climate change policy, taking the pro-choice side of the abortion debate, and seeking to heal the wounds from internal conflict over indigenous rights (Hays, 2015; Phipps, 2015).

It is unsurprising that Europe's liberals would be looking for the lessons they can learn from the success of their counterparts in North America. In the European Union, liberals govern in only 7 countries, their European Parliament group holds only 9% of seats, and in countries like Germany and the UK the long established liberal parties have faced electoral wipeouts over the last five years.

Yet the elections in Canada - as well as elections in Argentina, Poland and elsewhere over the past week - confirm one thing very clearly. Overcoming the Conservative establishment and fending off the efforts of Right-wing populists to assume control, isn't something that one progressive faction alone can accomplish.

Relying on the distorting effect of electoral systems that force voters into unrepresentative concentrations, or hitching the party wagon to a popular carthorse, cannot be considered lasting strategies. In what is clearly a pluralistic and divided political arena, the alternative has to be the building of alliances - and that means finding common cause between liberals and democrats, socialists and radicals, that can hash out what it means to be progressive in opposition to conservatism.

Back in July, Guy Verhofstadt used a visit by Prime Minister of Greece Alexis Tsipras to the European Parliament to challenge the Syriza leader on the need for political reform in Greece (ALDE Group, 2015) - a confrontation that was at least softened with support for finding a solution to the government of Greece's need for serious debt relief.

In his speech, Verhofstadt laid out a series of reforms Tsipras would be required to take if Greece was going to get the support it needs. Condensed into four steps, they were:
  • Bring an end to clientelism & establishment privileges,
  • Downsize the public sector,
  • Privatise public banks, and
  • Open up employment to give young people access.
If these four steps can be taken to represent a condensed version of the reforming aims of modern liberalism, how do they match up with the aims of other progressives?

In Greece, Tsipras and the Radical Left Syriza party have been struggling under stringent fiscal and economic conditions to press on with reforms (Hope, 2015). Tsipras choice to accept Eurozone terms for a further 'memorandum' bailout, to get access to the funds to continue reforms, even caused a split in his party that saw first Yanis Varoufakis and then later the Left faction of his party leave (Farrer, Rankin & Traynor, 2015; Henley & Traynor, 2015).

In his efforts to find a solution to the recurring crises, Alexis Tsipras' pragmatic radicalism has seen the Prime Minister of Greece drifting into the same political territory as that occupied by Prime Minister of Italy, and Partito Democratico leader, Matteo Renzi.

In Italy, Renzi has faced many of the same problems as Tsipras: unemployment, particularly amongst young people; clientelism and corruption; and a public and private sector heavily intertwined (Kramer, 2015). His approach has been to try to work within neoliberal models and play by its rules - a big centrist democrat legacy of Tony Blair (Day, 2014). That has required the pursuit of "competitiveness", including making labour more "flexible" - meaning making the cost of business cheaper, by making the cost and permanency of labour cheaper and weaker (EurActiv, 2014).

In the run-up to the UK general election in May, BBC Economics Editor Robert Peston described Ed Miliband as in the mould of Margaret Thatcher in his attempt to react to the times, and the debts held by the state, to tried to find solutions that did not involve the state being in control or ownership (Peston, 2015). In seeking decentralised solutions, Miliband was crossing into traditional liberal territory, but he struggled to sell them or inspire support with them

With Jeremy Corbyn taking over the helm of the Labour Party there have been fears of a sharp shift towards state ownership. Yet the ideas of the his economic advisory council are fundamentally mainstream and his 'renationalisation' plans have been more about co-operative public ownership than state control (Cortes, 2015).

In Greece, Italy and the UK, economic conditions are forcing parties of the Left to look for solutions that would certainly fall within two of Verhofstadt's recommendations: to downsize the public sector and privatise public banks. The question then becomes whether progressive parties can find an economic approach broadly acceptable to all sides.

As for political reforms, the situation looks trickier. In the UK, support for electoral reform towards something more proportional and bringing an end to an unelected Lords is growing, but is far from certain. In Italy, proposed political and constitutional reforms remain controversial in their attempts to strengthen the executive over the legislative (Politi, 2015), while Italy, and Greece, remain in an ongoing struggle to tackle corruption.

With regards to youth unemployment, in both Italy and Greece, tackling that specific problem seems a long way away as both countries grapple with the broader crisis (Totaro & Vasarri, 2015; Howden & Baboulias, 2015). In the UK, the Conservative government is pursuing apprenticeships as its go to measure, a pledge matched by the Labour Party during the election campaign (Wintour, 2015).

The need to find broad agreement across the Centre and Left is hastened by the dangerous rise of populism in the hands of deeply sectarian factions and moved along by popular nationalism and popular traditionalism (Roubini, 2015). Critics of conservative populism call for a Keynesian response that boosts aggregate demand with job creation and economic growth, that reduces income inequality and increases opportunities for the young.

To achieve these goals, a way has to be found to overcome the problem of social democratic/liberal positions having become toxic and to embrace the fact that people want something more. There is a general progressive hope, expressed through protests and activism, for a grander vision that focusses less on ambition and wealth, and more on cooperation and on what kind of life, and what kind of opportunities, there can be.

Elements of Guy Verhofstadt's proposed reforms being found in the work of other government's of the Left across Europe, even under huge fiscal burdens, certainly shows that some sort of bridge can be built between the positions of moderate and radical progressives, whether democrats or liberals, to offer a positive progressive alternative to conservatism, nationalism and populism.

But these are only the broad strokes and far more progressive things can be achieved. The next step has to be to embrace movements like Yanis Varoufakis' "very simple, but radical, idea" to build a cross-party EU democracy movement (Varoufakis & Sakalis, 2015). In such movements there is a chance to find common ground in pursuit of reform for the common good.

Monday, 20 April 2015

Election 2015: Party manifesto commitments and the values behind the policies

The traditional view of electoral politics in the UK is of two parties, one of the Centre-Left and one of the Centre-Right, who struggle with one another for control over the establishment. The one that succeeds is expected to implement their manifesto, a vision of the policies for the coming years - diametrically opposed to those of the opposition.

Yet the reality is that there has been - for some time, and accentuated in this election campaign - a lot of pretty obvious similarities between, and almost imitation of each other by, the supposedly fundamentally oppositional traditional Left and Right parties, Labour and Conservative (Robinson, 2015; Peston, 2015).

In many ways, though, that is kind of the point of majoritarian electoral competition. If the parties are competing for votes, rather than purely representing them, then by necessity they must appeal to the broadest possible audience. That broad vision, for which both parties try to sell their manifesto as the best representative, is called the political consensus. In the UK, that consensus has leaned slightly to the Right-of-Centre over the last five years - in response to thirteen years of Centre-Left government (NatCen, 2015).

So when both of 2015's main parties offer to be tough on immigration, harsh on welfare, and efficient with the public finances - particularly in needing to find £30bn to balance the budget (Peston, 2014), and when they talk about working people and families, they are trying to appeal to what they believe to be the issues that reflect the hopes, fears, concerns and values of the broadest possible audience.

With the expansion of Britain's political system over the last five years, from a two-party system to a multi-party system, a new element has been added to what a political manifesto has to achieve. As the number of parties represented increases, the chances of a major party claiming the number of seats needed for a majority decreases. By making one-party majorities difficult to achieve, alliances become essential. The manifesto becomes a means of communicating with other parties as well as with voters, as the starting point for future negotiations (Rawnsley, 2015).

To fully comprehend the manifesto released by any of the parties in 2015, the reader now has to consider all of these factors.

The problem is that, for many, it is hard to distinguish between the message being sent out to voters by each of the different parties. The protected and increased funding for the NHS, the clampdowns on immigration and on working-age welfare, an increase in house building, and a commitment to balancing public expenses and revenue: the four largest parties - in terms of support in the popular polls across the UK - all fall clearly within these parameters.

But it would not be right to say, however, that there are no differences.

Conservatives and UKIP

Conservative and UKIP plans have both been criticised for offering all sorts of tax cuts, alongside additional spending, even as they commit to going further and deeper with austerity cuts than has already been seen.

The Conservatives have been singled out, in particular, for repeatedly failing to address what will be targeted for spending cuts (BBC, 2015). David Cameron himself has even gone so far as to say that voters should simply trust the Conservative record (Gage, 2015). Aside from cuts, the Conservative manifesto places a hard focus on convincing people that the party cares about working people - from extending Right-to-buy to housing association tenants, and offering some discounts; to taking minimum wage workers out of tax, raising the minimum wage and creating more apprenticeships. But all of these are offset by other policies. There is a commitment to cutting taxes on businesses, increasing the legal threshold required for strikes and taking welfare away from young people.

UKIP seems set upon tax cuts as well - acting as little more than the extreme-wing of the Conservative Party. Their plans include what Nigel Farage termed an £18bn tax give-away. Their manifesto also contains a greatest hits compilation of the other parties' most popular policies, their own obsessions like anti-immigration, and plans to cut funding to the EU, to international aid, to Scotland and Wales, even to axe infrastructural projects like HS2 - seeking to save some £29bn in the process. But all the talk of saving money from withdrawing and scrapping all seems very short term and short sighted (Elliot, 2015).

£29bn in cuts to address the deficit and fund the NHS, plus another £18bn to be found in tax cuts, constitutes a lot of money to be found without taking into account the fact that these cuts could result in damage to Britain's economic and financial interests. The money spent on the EU and International Aid in particular go to facilitating better conditions, here and abroad, for ourselves as well as others. Much of the EU spending notably returns to the UK, in the form of grants to support local councils and scientific research.

With Conservative plans to take less revenue - a reduction on inheritance tax, more spending on opening free schools, more funding for the NHS, a doubling of the free childcare allowance, taking minimum wage workers out of tax, building 200,000 homes, extending right-to-buy for tenants of social housing, keeping museums and galleries free to enter, freezing the BBC license fee, and, on top of all of it, finding around £30bn in order to eliminate the deficit - it is a glaring omission that we do not clearly know where the money will come from. While some Conservatives have offered the vague answer that a recovering economy would increase tax revenue and so offset any tax give-aways (Ridley, 2015), it would seem that a voter would be gambling on quite a lot with a vote for a Conservative government.

Labour

The traditional alternative to the Conservatives would seem to be offering a different kind of gamble. While Labour have consistently rejected the suggestion that they will cover spending commitments with borrowing, their slower and steadier approach to lowering the deficit and debt would certainly leave them room for a little greater flexibility (Peston, 2015{2}). The party appear to be aiming to use their focus on raising living standards, by doing things like raising the minimum wage to £8 an hour by the end of the next parliament and promote the living wage, to ultimately increase tax revenues - in a manner parallel to Conservative plans dependent upon economic growth - and offset any spending commitments.

This kind of attention to the fiscal details is all part of Labour's attempt to rebuild its credibility (Elliott, 2015{2}). After the economic crisis began on the party's watch, there seems to be an understanding that Labour needs to re-establish its credentials. Yet that determination to be seen as credible has meant the party has signed up for an economic orthodoxy run very much according to a conservative narrative (Eaton, 2015), and faces accusations from other parties, such as the SNP, of offering little more than austerity-lite (Wintour & Mason, 2015).

That means trying to find different ways of doing what Labour previously relied upon the state to do. Promises to reinstate the 50p tax rate and to end Non-Dom tax status signal a move away from New Labour, but the commitment to austerity refrains the party from moving to the traditional ground of taxing, borrowing and spending (Peston, 2015{3}). Instead, by increasing the minimum wage, proposing ways of tackling rising rent and energy costs, and capping private profits from NHS contracts - rather than simply replacing market solutions with public control - Labour seems to be suggesting that it has learnt its lesson when it comes to trying to micromanage everything from central government.

Liberal Democrats

For those that agree with the mainstream consensus, the safe option would seem to be the Liberal Democrats. The party has reduced its need for particularly deep cuts, as they try to balance the books, by promising to raise taxes on the wealthier, to restrict some of their benefits, and to introduce new levies like the Mansion Tax on their homes. Meanwhile they still leave themselves free to expand spending later in the Parliament, once the deficit is eliminated and the economy is growing - particularly on the NHS to which the Lib Dems were the first to commit to funding by a full £8bn more per year by the end of the next Parliament. Yet beneath the surface of the Lib Dem manifesto policies themselves, there is the appearance of an interesting division.

In some ways it would seem to be a revealing tale of two liberalisms. The manifesto was prepared by a group headed up by David Laws and constructed with the help of the party's usual process of democratic policy creation. The overall content of the manifesto itself represents the Centre-Left social liberalism of the party membership at large - protections of rights and liberties, combined with action to ensure an 'opportunity for everyone' - and contains many policies green in colour and libertarian in flavour (Wintour, 2015). Priority is given to investments in industrial regeneration - particularly digital and green energy based - and to the introduction of their 'Five Green Laws', along with indulging the party's love for rights and liberties - this time with protections for digital rights and for the rights of journalists (Elliot et al, 2015).

However the priorities from that manifesto, and the tightly controlled message constructed around it (The Guardian, 2015), are right out of Laws' Orange Book Market Liberalism, seen by many as the Lib Dems' Right-wing. The presentation of the Lib Dem manifesto - which sets it aside from the two traditional political powerhouses by having their coalition negotiation priorities on the front cover - focus heavily upon the narrative used to justify the coalition and represent the party's main policy successes therein. The fact that the majority of the front cover commitments have been copied by the Conservatives - and the absence of a mention of the UK's membership of the Europe Union - is notable.

Yet there is still plenty of common ground to which Ed Miliband can pitch - his main compromise will be meet the Lib Dem priorities already co-opted by the parties of the Right. The rest of the Lib Dem manifesto looks like it would integrate with that of Labour quite neatly. From a commitment to staying in Europe, to the introduction of a Mansion Tax and increasing taxes on the wealthier, there is much that a Lib-Lab accord could agree on without a fight. Labour action on letting agent fees and the Lib Dem policy of help-to-rent tenancy loans represent what might well be easily integrated, pretty comfortably, with a Labour system.

While the the priorities and message make it easy to see another term with the Tories, the manifesto at large appeals to a coalition with Labour. Sitting between the two, Clegg's team are working hard - favouring a controlled strategic message over openness and idealism (Green, 2015) - to present the Lib Dems as the more attractive prospective governing partner to all sides, when compared to the SNP or UKIP (Robinson, 2015{2}).

Greens

Yet not everyone is convinced by the conventional wisdom, however balanced and reasonable it may be presented. The Green Party represents the progressive alliance group of parties - including Plaid Cymru in Wales and the SNP in Scotland - in its opposition to the dominant pro-austerity, deficit-reduction narrative.

The Green Party's pitch to voters represents the Left-wing ground that some feel Labour has abandoned (Behr, 2015). Renationalisation of the railways, completely excising privatisation from the NHS, the introduction of a £10 living wage, a 60p top rate of tax, an expansion of the public sector, the abolition of tuition fees and the abandonment of the economics of austerity, growth and balanced budgets - these all represent an occupation of political ground Labour clearly feels it cannot win from.

The problem facing the Greens is that their pitch also means far more spending and far more borrowing to pay for a complete change of direction in terms of the size of the state. As the election gets closer and gaps get tighter, they will probably be squeezed out in favour of a safer option. That will mean a best case scenario of picking up only a very few seats, with which they can do little but pressure a minority government. That means deciding how to balance their idealism against the reality of what they can actually achieve (The Guardian; 2015{2}) - the very thing upon which the Lib Dems ran aground in 2010.
'Sooner or later, idealism and realism have to come to some sort of accommodation.'
For the Greens, according the MP and former leader Caroline Lucas, that means crafting a set of priorities that can at as an anchor to restrain Labour's move to the Right (Mason, 2015). Yet it is the commitment to some deeply idealistic policies found in the Green manifesto that will be the main attraction for many - chief examples amongst them being the Citizen's Income with its promise of an end to poverty and the abolition of tuition fees. But those are not the priorities of all supporters and members, many of whom put their vision of environmental sustainability first. Managing those tensions will be key to this manifesto, and how it is applied in the next parliament, not pulling the party apart.

The Underlying Values

Those ideals, lying beneath the often fairly similar priorities and policies, are an important part of manifesto. They can be woven in a co-ordinated into the fabric of the policies contained within it, or for parties like UKIP, remain hidden beneath a deflective surface of popular policies taken from other parties.

For example, behind the Conservative expansion of Right-to-buy - on its surface increasing the supply of houses to help ordinary people onto the property ladder - has been criticised as a Thatcherite sell-off of public property that does little to address the actual problem. It has been accused of instead furthering the lack of access to affordable shelter for the less well off, by depleting reserves of social housing (Jones, 2015). That policy chimes consistent with the Conservative emphasis upon reducing the size of the state, putting the burden of welfare upon the shoulders of the individuals themselves within the private market.

Both of the two main parties share similar approaches to both immigration and welfare - likely reacting to cover political ground opened up by the campaigns against immigrants, and those receiving working age benefits, led by UKIP and the Right-wing press (Greenslade, 2015). But their reasons for doing so are different.

Labour, caught between the arguments of Blue Labour - that the party needs to recapture working class voters by appealing to their conservatism - and their own attempts to divert attention away from immigration and on to low pay and falling living standards, seem reluctantly to have taken a cynical position as a qualified concession. The party have spoken of some controls on immigration as a campaign priority, but have kept their focus on low pay and living standards.

On welfare the matter seems even less clear. While the Tories talk of rewarding hard work with a plan seemingly based on relative comparison - cutting taxes for low paid workers and punishing those in need of welfare with more and heavier restrictions (Peston, 2015{4}) - Labour have moved to the Right to cover the Tories almost blow for blow in restricting benefits. Young people face particularly severe cuts in support. That move, along with the shift on immigration, is causing some confusion as to what the party is actually standing for (Perkins et al, 2015).

Multi-party politics

Amongst the positives of a shift to multi-party politics is that it allows for the possibility of parties as representatives - if the biggest parties could let go of their lust for power. Parties representing different ideals would represent their supporters in finding alliances and common grounds for co-operation that do not depend everyone being forced under one big tent.

The parties could focus upon representing a consistent set of values or priorities, like those found in the Lib Dem or Green manifesto, values like a free society or a sustainable society, and less on trying to appeal to all audiences. A centrist balance between idealistic visions is then achieved by a coalition after an election, where as broad a group of parties as possible agree to work on achieving their common or compatible ideas.

Right now, though, we are still bogged down in the practicality of majoritarian politics. The Tories and Labour find little room for an idealistic vision, and policies that reflect those values are watered down before they even reach the pages of the manifesto. Their concern is to gather as many voters as possible in order to claim control over the establishment and its power - the same old story.

While the Lib Dems remain the most well adapted to the realities of multi-party politics, with a manifesto that finds room for their ideals but sets them beneath the priorities for post-election negotiations - a mixture of ideals and practicalities - it is likely that only the Greens who have presented a vision of a society, in their manifesto, that truly represents an uncompromising pursuit of their values.

At this election, the absence of major concessions to practicality will likely count against them. But in the future we might possibly, hopefully, see it a little more often - if the traditional parties cannot reimpose their system on 7th May.

Monday, 6 April 2015

Election 2015: A Shorthand Guide to the 2015 UK General Election

Welcome to our shorthand guide to the 2015 UK general election. This will also act as a master post, a hub from which you can reach our more detailed assessment of the main issues and the policies of the major parties.


For the first time since 1910, the UK looks like it will elect two consecutive hung parliaments. By denying the two traditional opposing parties the right to dominate, the electorate has opened the floor to a lot of new ideas, from a lot of new parties. Over the next seven days The Alternative will take a look at each of the challengers, in turn, that are hoping to get your vote on 7th May, and over the next month pick apart the big issues up for debate.

The election itself will be fought, once more, under the first-past-the-post electoral system. Voters had the chance to reject and replace the system in a Liberal Democrat backed referendum but - in a low turnout of 41%, about 19m people - the change was rejected by 68% to 32% (BBC, 2011). Voting will take place on 7th May. The votes will be counted as soon as the polls close at 10pm and the result will be announced in each constituency as soon as it is known.

After the counting, the leader of the obvious majority in the House of Commons will be called to the palace and asked to form a government. However, if there is no clear leader then negotiations will begin. There are a couple of options at that point. The first option will be a coalition government between two parties that between them is able to hold a majority. The second will be a minority government, where one of the parties - likely at this point to be Conservative or Labour - will go it alone on an issue by issue basis, with no guarantee that it will be able to pass legislation.

At present, the polls tell us that the Conservatives and Labour look to be stuck in deadlock - both holding around 270 seats, each about 50 short of a majority. With the Liberal Democrats looking unlikely to keep enough seats to tip the balance one way or another, a minority government looks at present to be most likely - for the first time in the UK since the Labour governments of Harold Wilson and James Callaghan in the 1970s. The other option would of course be a 'Grand Coalition', where the biggest parties representing the Left and Right formed a coalition with each - something not uncommon in Europe, seen from time to time in Italy and in Germany, where the present government combines the conservative CDU with the social democratic SPD. However, the historical differences between Labour and Conservative supporters would make such a deal almost impossible.

Before all that though, the parties will have to convince voters of their ideas, or - as is more often the case - defend their record.

David Cameron, with so many challengers waiting in the wings to contest his leadership, needs nothing less than to secure a majority for the Conservatives. Achieving that will depend, firstly, upon having convinced the public that austerity was absolutely necessary, and that, secondly, it will produce a competitive advantage in the long run that will be generally beneficial.

On 7th May, the electorate will also pass judgement on the Conservative-Liberal Democrat coalition, and on coalition government in general. The answer to that question will not come from the success or failure of Cameron, but rather from Nick Clegg and the Lib Dems. Whether or not the decision to enter coalition has been accepted by voters will be seen in how much support, and how many seats, the Lib Dems are able to retain - likely regardless of the policies they put forward.

Ed Miliband, meanwhile, has found himself having to answer to the legacy of Tony Blair and Gordon Brown. Labour's results under his leadership will go some way to showing us if his party has managed to shake off the disaffection that saw Labour finally lose its majority in 2010, after thirteen years in office. Votes for Labour will also likely reflect a rejection of Cameron's policies - even if Labour have largely ruled out ending austerity (Whitaker, 2014).

These three, the traditional British parties, will this time be facing some new challengers who have a real chance to upset the established order. UKIP and the Greens, representing the Far-Right and Far-Left respectively, are both polling over 5% for the first time at a general election - making that five parties over 5% in England alone - and Scotland looks sure to be swept by the SNP, so comprehensively as to make them the new third party overall in the UK.

But the only reason any of this will matter is if you vote. Not voting is, as Nick Clegg put it on The Last Leg:
"It's like going to Nando's and asking someone else to put in your order, and then you get something you don't want. If you don't vote, you'll get a kind of government you don't want. So get stuck in there and vote."
If you want change, then you need to vote. Plain and simple. Not voting just leaves others to make big decisions for you, about your life, on your behalf. What will not be simple is figuring out who to vote for to get the change you want. Over the next week The Alternative will post a guide to each of the main parties competing in 2015, and over the next month on the NHS, the Economy and the European Union, filled with links to references, to help you make your choice on 7th May.