A WORLD FOR THE MANY, NOT THE FEW – LABOUR’S POLICY FOR DEVELOPMENT

LCID member Caroline Pinder blogs on development policy and what Labour could do differently

Caroline has been a member of the Labour Party for 45 years, currently in Oxford East CLP.  She has been an international development consultant for the past 30 years, focusing on gender equality and social inclusion, VAWG and women’s economic empowerment.

Labour’s policy paper on international development, “ A World for the Many, Not the Few” with its twin focus on reducing inequality and poverty, sets out an inspiring vision for taking forward Britain’s role in the world as a champion for the poor and voiceless, who have been treated by the Tories, for the past eight years, as objects of charity and patronage.  

The Tories have sought to steal the development agenda by claiming credit for introducing the 0.7% target, acting as the “nice guys who care about the poor”. They have used the increased ODA budget resulting from 0.7%, however, as a means to export their neo-liberal ideology and return to an aid-for-trade approach that smacks of neo-colonialism.  They have done nothing to tackle the embedded cause of poverty which is inequality both within and between nation states. Rather they have fostered competition between states by supporting deregulation and distortion of markets which have further reduced the incomes and livelihoods of these states’ poorest and most vulnerable citizens.

We need to remind ourselves, and the electorate, that it was Labour’s recognition in the late 1990’s of the importance to wealthy and poor nations alike of a fair and transparent global economic and social framework.  It was Labour which gave international development full Cabinet status, making it possible for the UK to influence the global aid agenda through the 2000’s and achieve worldwide support for the MDGs.  It was Labour who encouraged a stronger voice for less developed nations and their citizens through the Paris Declaration on Aid Effectiveness in 2005, and the follow up Accra Agenda for Action in 2008.  

Now, chunks of DFID’s budget are being passed to the Foreign Office and other departments to meet their overseas missions.  These may run counter to the objectives of the original International Development Act 2002 which required the Secretary of State to provide assistance “likely to contribute to a reduction in poverty” either by “furthering sustainable development (or) improving the welfare of the population.”  It was this mandate which enabled DFID to lead the way internationally in challenging earlier, colonial-style, development models. The next Labour government needs to continue that earlier work by fostering an international agenda which challenges entrenched global interests, is genuinely inclusive, strengthens the voice of poor nations and their vulnerable citizens, and reduces inequality at all levels.

Building on the experience of the MDGs, the 2015-30 SDGs offer a mechanism for delivering this commitment.   Labour should commit to ensuring all international spending is targeted towards delivering on the SDGs, in particular those concerned with the more vulnerable members of our global community:  women and children living in violent situations, threatened indigenous groups, refugees fleeing torture and conflict, those who are physically and mentally challenged, and disempowered minorities.  

The next Labour government should also encourage innovative approaches to tackling global systems and institutions which penalise poor nations or put them at a disadvantage, by setting an example through the UK’s own dealings with corporations that seek to evade tax, and cut wages or prices paid to poor people in developing countries.  And we need to support governments of least developed nations to establish good quality public services, paid for through fair and transparent tax systems, which will fund health and education services that are accessible to all their citizens. We have a champion NHS that was built on the principle of free access to all in need; it’s a model we should be proud to export, and support its delivery across the world.

There will be occasions when it is reasonable for some of the 0.7% funds to be given to other UK government departments, for example bringing in expertise to support states in setting up quality health care and education systems.  It is not acceptable however, for aid funds to be used for trade or foreign office interventions. There needs to be cohesion across our foreign, trade and development policies, so we don’t contribute to appalling humanitarian disasters such as that currently being experienced in Yemen as a result of the two-faced Tory policy to support trade of arms to the Saudis, whilst delivering food and medical aid to Yemen’s citizens.

These ideas, and more, are captured in the “World for the Many, Not for the Few”.  But ideas need to be turned into reality, and for this DFID needs to be re-energised and strengthened to become again a driving force against the continuance of global poverty and inequality.  It also needs to strengthen partnerships with NGOs and civil society, as well as governments of developing nations.

The Policy paper points out that DFID’s budget has quadrupled since 1997 but its staffing level has not grown proportionally.  As a result DFID has had to commission more and more of its work to be delivered in-country by private contractors whose first priority is profit rather than sustainable development. A departmental staff review is therefore essential to ensure DFID is able and fit to deliver and achieve the maximum impact with the 0.7% ODA, exempting it from the civil service staff freezes which are curtailing its work under the Tories.

It is also important to re-invent and expand the role of NGOs in delivering for impact.  The Tories have slashed again and again the Programme Partnership Arrangements (PPAs) which enabled NGOs to pioneer new approaches to development that reach the poorest in global communities.  Here in the UK there is also work to do in broadening and deepening our own citizens’ understanding of why and how global poverty and inequality impacts on better off nations. “Aid” has been used as a dirty word by some of our media; we have to show that a “World for the Many, Not the Few” brings benefits to everyone.

 

A global NHS: from competition to collaboration

William Townsend, Business Development Officer for THET  @Willmo1

Turning 70 this year, the NHS continues to be Britain’s most cherished institution. And rightly so, in all this time it remains one of the world’s greatest social achievements. It also happens to be the 70th anniversary of the docking of the Empire Windrush, an important reminder that the history of the NHS is also a proud history of immigration to the United Kingdom.

From its inception in 1948 to today the NHS has benefited tremendously from immigration: almost a quarter of the NHS workforce is made up of people with a black and minority ethnic background with 202 nationalities represented across a workforce of approximately 1.4 million.

With vacancies of 35,000 nurses and 10,000 doctors in England reported this year, our reliance on overseas health workers persists. It’s even an issue organisations as diverse as the Guardian and the Daily Mail can agree on: non-UK health workers should be able to come to the UK and work for the NHS. As such, the cap on Tier 2 visas for doctors and nurses from outside of the European Economic Area has recently been scrapped by the Government.

But is this debate as clear-cut as it seems?

Health worker shortages are not unique to the UK. The issue is global and the current deficit of 7 million health workers is set to grow to 18 million by 2030. Unsurprisingly, this shortage is felt most acutely in low- and middle-income countries (LMICs), where thousands die daily due to a lack of access to qualified health workers.  

While NHS Employers Code of Practice states that “developing countries should not be targeted when actively recruiting healthcare professionals”, my charity, the Tropical Health and Education Trust (THET), believes the NHS must do more to collaborate, and stop competing, with other countries to ensure we plug the worldwide gap between the demand and supply of health workers.

In some ways the NHS is already pivotal in this regard. For instance, through the DFID funded and THET managed Health Partnership Scheme, NHS volunteers from 130 Trusts have trained over 84,000 health workers across 31 LMICs between 2011 and 2017. Kate Osamor MP, Shadow Secretary of State for International Development, recently witnessed some of this work first-hand as she visited Somaliland and saw how Kings College London and THET are collaborating to strengthen medical education there.

In addition, in April the Department of Health and Social Care also announced a global nursing partnership with Jamaica, seeing Jamaican nurses work in the NHS for 3 years to provide care and gain specialist skills which they will then take back to the benefit of the Jamaican health system.

It is imperative therefore to strike a balance that ensures the NHS’ gain is not another country’s loss; particularly important in the context of Labour’s recent policy commitments to support a global movement for public services. We must continue to respect the rights of health workers to migrate to the UK and work in the NHS, whilst ensuring we don’t have a detrimental impact on patients overseas, for instance by attracting some health workers to the UK for training and education purposes with a view to them returning home to up-skill their peers.

The Human Resources for Health crisis is, of course, a complex issue with multiple changes required across all facets of a country’s health system (for instance in health system financing) but if the NHS is to be a genuine beacon for Universal Health Coverage, it cannot passively benefit from other countries’ – particularly LMICs – investments in health care.

We should be immensely proud of our global NHS workforce, and of an increasingly global outlook from the NHS. This is why THET is calling on the governments of the United Kingdom to enshrine the global nature of the NHS in their respective constitutions. We call on them to initiate a clause committing the NHS globally in ways which will benefit patients at home whilst also enhancing other countries’ abilities to build robust health systems.

There are many innovative and interesting models to be explored in order to do this. We look forward to continuing the debate, and others, at THET’s conference on the 27th and 28th September 2018 at Imperial College London.  

 

British aid and the defence of internationalism

By Pablo Yanguas, Honorary Research Fellow, Global Development Institute, The University of Manchester. Disclaimer: The views expressed here are those of the author and do not necessarily represent the views of LCID. LCID is a strong supporter of the 0.7% aid target and our views on the future of the UK aid budget can be read here.

Britain’s aid system is full of paradoxes. It benefits from a decades-long consensus amongst elites about the intrinsic and instrumental value of aid; it has been afforded billions of pounds to tackle some of the world’s thorniest problems; and it is led by the OECD’s premier bilateral agency, a ministry that often defines the transnational development agenda by combining expertise, accountability, and vision. None of this can be said of any other donor, bilateral or multilateral. And yet DFID’s ecosystem is tragically misunderstood or neglected by the British public; it faces recurrent attacks from tabloid hacks less interested in development than in scoring cheap rhetorical victories; and it is subject to a level of scrutiny and control that can easily stifle creativity and risk-taking.

DFID and the broader UK Aid system are something to be proud of. They are worth fighting for. But the fight to keep Britain’s leadership hangs on the edge of a knife as the aid community faces two existential challenges going forward – one technical, the other political.

In technical terms, the world of aid is getting smaller, and harder. After the uncertain decades of the late 20th century, developing countries have decidedly entered a new phase in their economic, social, human, and political development. Absolute poverty is on the decline, average incomes are rising, private sectors are flourishing, and a new middle class is beginning to feel a deeper sense of ownership over their countries’ destinies. Governments can now find in financial markets the credit that was long denied them. When loans are too costly, grants and other transfers from rising Southern power are matching – and, in some cases, surpassing – traditional ODA flows coming from bilateral donors or international financial institutions.

All of these trends are a net positive for the world, but they do not reach everywhere. There remain still plenty of countries that are too remote, destitute or unsafe for markets to take an interest. Where that neglect overlaps with a lack of geopolitical relevance one finds the intractable places of the world: Chad, Democratic Republic of Congo, Honduras, or Afghanistan. But more stable and prosperous low- and middle-income countries also face challenges that cannot be met with financial transfers alone. Intractable problems like corruption, market regulation, and public service reform call for savvy technical assistance and coalition-building efforts. These are contentious issues where reform may take decades to come to fruition, due to vested interests or deeply-rooted social norms.

Luckily, a host of committed and creative actors within the aid community – and increasingly the broader development community – have spent the better part of two decades breaking down these challenges, taking an honest look at business as usual, and developing new concepts, frameworks, and modalities for making aid impactful in intractable places or intractable problems. It is a nascent agenda, an inchoate insurgency that cuts across bilateral agencies like DFID and USAID but also think tanks, charities, and private providers. There is no shortage of good ideas, or people willing to test them. What this community lacks, crucially, is political coverage.

It is unclear whether the foreign aid system as we know it can survive in a time of populism. Identity populism has legitimized the moral discrimination between nationals and foreigners, undermining the fundamental humanitarianism that led to the establishment and expansion of the aid system. Economic populism, in turn, has undermined the fundamental internationalism that underpinned the liberal, rules-based world order that emerged from the ashes of World War II. Humane internationalism was for decades the underlying moral vision of foreign aid, in Britain as in other OECD countries. However, the current crisis of public confidence in aid is but a sideshow in a much larger struggle between internationalism and populism.

There is little that the aid community can do by itself to stem the tide of morally and intellectually suspect yet emotionally persuasive populist claims. DFID has defaulted to a reactive modus operandi in which Daily Mail scandals are met with meek press releases. The charity world has internalised a siege mentality that responds to criticism with an impossible commitment to the highest ethical standard, while still peddling the kind of poverty porn that breeds popular resentment and plants the seed of populist backlash. The firms that implement DFID projects around the world are terrified of headlines and reputational costs in a world where accountability is often understood in a strictly contractual sense. And academia has grown increasingly distant from the realities of aid practice, gladly taking ODA funds without bothering to understand the very hand that feeds them. Only ICAI dares to question some of the worst excesses of the aid counterbureaucracy, despite having been set itself to keep an eye on the aid system.

An isolated aid community pins all its hopes on the promise of enlightened leadership. Practitioners yearn for a minister who truly believes in aid, instead of someone for whom a DFID appointment is merely a stepping stone towards better, more important things. They look to Parliament for understanding, succour, and protection. But their insularity has propelled them into a downward spiral, retreating to the safe and comforting camp of Guardian readers, instead of reaching out to fellow internationalists in business, religious congregations, or the free-trade wing of the Conservative movement. It is, by all appearances, a self-defeating strategy. But it is what short-term incentives allow.

Seen in this light, the aid system poses a much larger and more fundamental question for Labour (and the other parties): will our leaders fight to protect and expand the kind of humane internationalism that advances peace, prosperity, equity, and dignity for all? Or will they bow down to our worst instincts, let Britain sleepwalk into a new era of populism, and thereby jeopardise one of the world’s best aid systems?

It’s essential for our NHS that we end the era of the British tax haven

mike kaneThis article first appeared on LabourList on Tuesday 1 November

By Mike Kane,  Shadow Minister for International Development and Labour MP for Wythenshawe and Sale East – @MikeKaneMP

Theresa May has pledged a crackdown on tax havens. She should start by cleaning up our own backyard – the secretive network of UK-linked tax havens like the British Virgin Islands, Bermuda and the Cayman Islands.

Today and tomorrow’s summit of overseas territories leaders, taking place in London, provides the perfect opportunity to kickstart that process. They are our very own treasure islands, stuffed full of booty from around the world: entire economies set up to help wealthy people and unscrupulous companies to avoid paying their fair share of tax. That is money that could be spent on public services like schools and hospitals.

Over the past few years the Tory government has talked a tough game on tax dodging, decrying bad practice and demanding alleged tax avoiders like Starbucks “wake up and smell the coffee”. Ongoing scandals like that which engulfed Apple, and a wilful blind spot when it comes to UK-linked tax havens, tell a different story.

And it is the world’s poorest countries that are the worst affected by this inaction. Corporate tax avoidance is estimated to cost developing countries an astonishing $200bn every year more than they receive in aid. Much of that is siphoned off via tax havens like Mauritius and the British Virgin Islands. Money needed to tackle poverty, cure disease and promote education disappears offshore never to be seen again. That is a gross injustice.

Back in April the Panama Papers leak blew a hole in tax haven secrecy. Those with the means to do so were bending or breaking the rules on a huge scale, benefiting at the expense of ordinary people in the UK and in the world’s poorest countries.

In response, 300 top economists including Thomas Piketty and Nobel laureate Angus Deaton, told world leaders that tax havens “serve no useful economic purpose“. They also argued that the UK is uniquely placed to lead a crackdown, because it has sovereignty over around a third of the world’s tax havens through its overseas territories and crown dependencies.

Our involvement cannot be understated: more than half of the 214,000 firms named in the Panama Papers were registered in the British Virgin Islands, a UK overseas territory. Make no mistake – the UK sits at the heart of a global web of tax havens.

David Cameron came up woefully short on his promises to fix this problem, culminating in the refusal of many overseas territories to even attend his much touted anti-corruption summit earlier this year, much less make the kind of commitments that are needed.

That’s not to say others aren’t trying.  The anti-poverty charity ActionAid has called for greater transparency from UK-linked tax havens; the tightening up of global rules; and reform of the UK’s tax treaties with poor countries – another tool big companies use to avoid paying tax.

Caroline Flint and her colleagues on the public accounts committee secured an amendment to the finance bill which could compel all UK companies to declare the tax they pay everywhere they do business – including tax havens. Ministers must now find the courage to implement the law.

The new prime minister talks a good game on tax dodging, but she can no longer ignore the glaring issue of the overseas territories: our single biggest contribution to the global tax system.

Transparency is a vital first step. We need to know who own the countless anonymous shell companies registered offshore. That’s why ActionAid and others are campaigning for registers of beneficial ownership. Only by tackling secrecy can we know who is hiding their money, and hold them to account.

All of us are expected to pay tax – we should demand no less of the wealthy and big corporations. Tax is the key building block of our public services. Without it there is no NHS, no police, no schools, no welfare state. Everyone should pay their fair share.

We are accountable for the overseas territories and they are accountable to us. And when it comes to cleaning up tax dodging, they are our greatest weakness and our greatest strength. They have a corrosive impact on the global tax system, eating it from the inside. But we have the power to change that. By acting to sort out our tax havens we could set an example to the world.

Theresa May must put the UK’s British treasure islands on notice. It’s time to end the age of the British tax haven.

Owen Smith MP – my commitment to tackling poverty at home and abroad

owen-smith-2Owen Smith MP, candidate in the 2016 Labour Leadership contest, blogs for LCID on his commitment to international development – @OwenSmith_MP

Anyone in any doubt about the right-wing agenda of this new Tory government should take a look at two of Theresa May’s lesser commented-on appointments over the summer – that of Priti Patel as International Development Secretary, and her Special Adviser Robert Oxley – formerly of the Brexit campaign and the ideological Taxpayer’s Alliance.

Both Patel and Oxley have spent years attacking the very department that they now lead, arguing for the aid budget to be redirected, cut or even scrapped – and even at one point suggesting that DFID should be abolished or reformed. Even more shockingly they appear to be willing to undermine the cross-party consensus on the 0.7% aid target to spend a small but guaranteed proportion of our income on supporting education, health and responding to disasters around the world. They must be stopped.

Establishing DFID, leading the way on both the quality and quantity of our development assistance, and while abandoning the type of policies that led to the Pergau dam scandal – was one of the proudest achievements of the last Labour government. An achievement that literally saved lives around the world, and showed the type of outward looking internationalism that Britain and Labour should represent.

It is clear that there is a moral case for international development assistance – and focusing this on those who need it the most. Who can say that we should turn by and walk on the other side when so many children remain unable to go to school, when millions face the threat of HIV/Aids, Malaria or TB, and when women and girls often bear the brunt – not least in conflict zones. And as we see the effects of climate change and disorganised war and conflict impacting on many more – we also have to prepare for the challenges of the future.

It’s why the agreement of the Sustainable Development Goals was so important – recognising that tackling poverty and injustice requires concerted action in many areas, and in the richest countries domestic policies as well as their international action – not least when it comes to sustainability, climate change, taxation and corporate behaviour overseas. I want to see a Labour government that leads the way in delivering the goals domestically and internationally.

But as well as the moral case – international development is clearly in our national interest. Whether it is the tragedy of poverty and conflict driven thousands drowning in boats in the Mediterranean – or the threat of instability and poor governance in countries across Africa and the Middle East leading providing the space for extremism to grow – we ignore these challenges at our own peril. There is no zero-sum game between our Defence, Development and Diplomatic efforts around the world. We must ensure there is coherence and collaboration to ensure a safer, fairer and more just world for all.

But I believe there is something more fundamental at stake. Many understand the need for charity – but only Labour has historically recognised the need for justice – whether for garment workers in Bangladesh, women fleeing rape in the DRC or the refugees of Syria. We need to address the immediate impacts – but also the economic and political structures that drive injustice, poverty and conflict – for example through global tax transparency or fair trade. DFID and our aid budget have been at the heart of that fight for justice since 1997, and I will fight tooth and nail as Labour’s Leader to ensure the Tories don’t take an ideological axe to its work – and pledge to put tackling poverty at home and abroad at the heart of my programme as Labour’s next Prime Minister.

 

Owen Smith

Owen Smith MP signs LCID pledge for Leadership candidates

owen-smith-mpAs with previous leadership contests in 2010 and 2015, LCID will not be endorsing a leadership candidate in the current contest.

However we have asked candidates to sign the International pledge for 2016 Leadership candidates.

We are delighted that Owen Smith MP has signed the pledge and agreed to uphold the principles it contains.

We are awaiting a response from Jeremy Corbyn MP.

 

International pledge for 2016 Leadership candidates:

 

  1. I believe tackling poverty and inequality is what Labour governments are for. Any government I lead will take a ‘whole government’ approach to global justice, ensuring that our policies on tax, trade, climate change, home affairs, education, business regulation, defence, and security deliver for the world’s poorest people.

 

  1. I back British aid. I will ensure we spend 0.7% of GNI on aid and spend it well, focusing our aid exclusively and explicitly on tackling poverty and inequality, even in the hardest to reach places.

 

  1. I want DFID to be a development department, not just an aid administrator. I will ensure DFID is an innovative, independent department with a seat at the cabinet table and representation on all the relevant cabinet committees

 

  1. The Government I lead will pursue an ethical foreign policy and champion a progressive approach to humanitarian intervention in line with our international obligations, such as the UN’s Responsibility To Protect Civilians commitment.

 

BREXIT: A threat to tackling global poverty

mike kaneBy Mike Kane,  Shadow Minister for International Development and Labour MP for Wythenshawe and Sale East – @MikeKaneMP

 

Whatever side of the EU Referendum Debate you sit on it is hard to deny that being able to work collaboratively with some of the world’s strongest economies, to pool financial, institutional and technological resources enables us to make much more significant inroads into tackling global poverty than it would if the UK simply acted alone.

As ActionAid UK’s Chief Executive, Girlish Menon said in a recent blog on the subject: “To end poverty we need stronger, not weaker collaboration.”

I am proud of the UK’s commitment to International Development over many years and successive Governments. The last Labour government helped 3 million people out of poverty a year, and 40 million children into education, tripled aid, dropped the debt, and built international coalitions to secure agreements that were right for Britain and the world. Had we sat outside the EU would those achievements have been possible on the same scale?  I do not believe they would.

As a Shadow Minister for International Development I was involved in the campaign to enshrine in law our 0.7% commitment to development aid spending. British aid makes a huge difference to millions. But it is amplified by being a member of the European Union which is the world’s largest aid donor. An example of how working collaboratively with the EU increases the effectiveness of our aid budget is in relation to global reach. The UK has aid agencies which operate in 28 countries around the world – include our partners in the European Union and that figure rises to 150.

Kevin Watkins, Executive Director of the Overseas Development Institute is right to point out in his recent article for The New Statesman that the EU Referendum debate so far as failed to address some of the important questions about our role and place in an increasingly interconnected world.  Even those who don’t adhere to the view that we have a moral obligation in relation to international development understand than in an increasingly unstable and insecure world efforts to tackle global poverty and end conflict have positive benefits beyond the countries in which they are made, including for the UK.

It’s not just about money, cooperation and global reach, of equal importance is the ability to pursue shared policies which go beyond international development yet impact significantly on the developing world. Progress on global tax justice has been led by the European Union but there is still much to do. We need to rework broken OECD tax rules and mandate the UN to develop a set of rules that ensure big businesses pay their fair share of tax in every country they do business in. Achieving this without the influence and leverage of the European Union is highly unlikely.

For me personally, as a former CEO of an organisation that built movements that mobilise the power of people to take action, I fear the impact of a UK exit on the influence of Civil Society.  Through the European Union the UK’s excellent network of NGOs have built the capacity of Civil Society across Europe. This has enabled civil society influence over key decision in relation to issues like climate change and tax transparency.

It’s time the debate on the EU Referendum dealt with the reality of the world as it today. A world that if we fail to address the challenge of global poverty will become increasingly unstable. A challenge that we will be much less able to address whilst sitting on the outskirts of the European Union.