Articles

In the face of Thatcher’s iron will, Scargill’s decision to lead the strike without a ballot was an error that sealed the miners’ fate

The miners’ strike, which began 25 years ago this month, marked a decisive moment in the period of the Thatcher government. More than that, it was also a watershed in postwar history. The labour movement emerged from the second world war far stronger than previously. The long postwar boom which lasted until the early 1970s further bolstered the unions; this new-found strength was tested during the Heath government when the unions successfully resisted its various attempts to weaken them.

At the heart of this militancy were the miners. When Margaret Thatcher took office in 1979, she was determined not to be thwarted in the way that the Heath government had been and her government prepared its ground for a future confrontation with the unions with a carefully-conceived political strategy and meticulous preparation.

Read more >

The “new” in New Labour was skin deep: it marked the party’s capitulation to Thatcher

The 30th anniversary of Lady Thatcher’s election in 1979 – and the beginning of the era of Thatcherism – now looks very different from how it would have been viewed just a year ago. Indeed, one is reminded that Gordon Brown regarded an invitation to the Iron Lady for tea at No 10 as a means by which to lend authority and credibility to his premiership in its earliest days. Would he do so now? Perhaps. But that is mainly because the present Prime Minister is unable to shed his own Thatcherite clothes even though reality is dragging him kicking and screaming remorselessly in that direction. The 30th anniversary of the Thatcherite revolution is taking place at a time when the whole edifice of its assumptions, panaceas and policy prescriptions is crumbling in spectacular fashion. If Thatcherism has defined the zeitgeist of British politics for three decades, suddenly it now seems out of time. That is what historical turning points are about.

Read more >

Salvation does not lie in demagogic attacks. Beijing must be treated as an equal – or another Great Depression beckons

The key relationship for any global recovery is between the US and China. By the same token, any serious deterioration in their relationship would propel the world towards a second Great Depression. The Chinese citizen has funded the credit-driven American consumer boom: or, to put it another way, China’s government has enabled the US to run an enormous current account deficit by buying huge quantities of US treasury bills. If China stops this, the value of the US dollar would plunge, and a bitter trade war, engulfing the rest of the world, would ensue.

Read more >

The business and political elite are flying blind. This is the mother of all economic crises. It has barely started and remains completely out of control

We are living through a crisis which, from the collapse of Northern Rock and the first intimations of the credit crunch, nobody has been able to understand, let alone grasp its potential ramifications. Each attempt to deal with the crisis has rapidly been consumed by an irresistible and ever-worsening reality. So it was with Northern Rock. So it was with the attempt to recapitalise the banks. And so it will be with the latest gamut of measures. The British government – like every other government – is perpetually on the back foot, constantly running to catch up. There are two reasons. First, the underlying scale of the crisis is so great and so unfamiliar – and, furthermore, often concealed within the balance sheets of the banks and other financial institutions. Second, the crisis has undermined all the ideological assumptions that have underpinned government policy and political discourse over the past 30 years. As a result, the political and business elite are flying blind. This is the mother of all postwar crises, which has barely started and remains out of control. Its end – the timing and the complexion – is unknown.

Read more >

Labour will pay at the next election for its inability to wrest accountability from vested interests in the financial sector

When the credit crunch struck once more in the autumn and threatened to bring every major financial institution in London and New York to its knees, there was wonderment at Gordon Brown’s reaction. From being a prime minister who had disappeared into his own manmade black hole and a chancellor who had been wedded to neoliberalism and all its economic wares, he suddenly displayed a nimbleness of foot and an openness of mind which had previously been alien to him. In contrast to the huge bail-out of the banks proposed by George Bush and Hank Paulson – with nothing in return for the taxpayer – the plan proposed by Brown and Alistair Darling at least gave the public a stake in RBS and Lloyds-HBOS in exchange for the huge sums of taxpayers’ money they received. Not surprisingly, its boldness was widely admired and copied, as was the decision to engage in major counter-cyclical public spending programme. That was then.

Read more >

England will never produce a true world tennis star until the sport loses its white, middle-class profile

Even now, following his tennis exploits at the US Open, there is only grudging respect for Andy Murray on the part of many. Imagine if Tim Henman had reached the final of the US Open – the media would have been going bonkers.
If we applied the same criteria to our football stars as we use for our tennis players, hardly anyone would pass muster: Wayne Rooney would be condemned as an oik, not fit to represent our nation.

Read more >

A repeat legal assault on the opposition leader highlights the current volatility. The old order is desperate to hold power

A feverish atmosphere now grips Malaysia. The country is awash with rumours. Until the resignation in 2003 of the previous prime minister, Dr Mahathir Mohamad – after 22 years in office – its politics was entirely predictable. Now it is becoming highly unpredictable.

Malaysia is one of the great Asian success stories. It has enjoyed a growth rate of up to 8% for much of the past 20 years, and the fruits of prosperity are everywhere to be seen, from the magnificent twin towers in Kuala Lumpur to the expressways and traffic congestion. Without doubt Malaysia is the great economic star of the Muslim world. The architect of this economic transformation was Dr Mahathir, but since he stepped down the country has been engulfed by growing doubts about his legacy and the emergence of a new set of priorities.

Read more >

The west can no longer impose its will on the increasingly powerful and self-confident nations of the developing world

We are but halfway through 2008 yet it has already born witness to a sizeable shift in global power. The default western mindset remains that the western writ rules. That is hardly surprising; it has been true for so long there has been little reason for anyone to question it, least of all the west. The assumption is that might and right are invariably on its side, that it always knows best and that if necessary it will enforce its political wisdom and moral rectitude on others. There is, however, a hitch: the authority of the self-appointed global sheriff is remorselessly eroding.

Read more >

Foreign policy is often dressed up in moral rhetoric, but ultimately might is stronger than right

You may remember that Robin Cook, newly appointed as Britain’s foreign secretary back in 1997, promised to introduce an “ethical foreign policy”. Such talk disappeared long ago, brought to an abrupt end by the illegalities and immorality of the invasion of Iraq.

I was reminded of Cook’s efforts by Gordon Brown’s address yesterday to the Israeli Knesset, where he uttered barely any criticisms of Israel and fulminated long and hard against Iran and its alleged nuclear policy. I have a serious problem with western hypocrisy over Iran and the bomb. We are against nuclear proliferation and yet no one breathes a word about the fact that Israel has many nuclear weapons, and has had them for a long time. So, why not Iran? One might add that Israel has always lived by the sword in the Middle East but the same cannot be said of Iran.

Read more >

As relations warm with both Taiwan and Japan, China is resuming its centuries-old position as the linchpin of east Asia

Observers have long agreed that the two most difficult foreign policy questions that confronted the Chinese leadership were relations with Taiwan and with Japan. The last few years have seen both deteriorate markedly. The election of the nationalist Chen Shui-bian as president in 2000 and his re-election in 2004 was a nadir in the relationship between Taiwan and the mainland. The premiership of Junichiro Koizumi heralded a serious deterioration in Sino-Japanese relations, with Koizumi’s insistence on an annual visit to the Yasukuni Shrine in his official capacity. Such was the growing antagonism between the two nations that in 2005 there was a wave of anti-Japanese demonstrations in major Chinese cities. This year, however, there has been an extraordinary turnaround in China’s relations with both Taiwan and Japan which has exceeded all but the most optimistic expectations.

Read more >