Tony Blair: Complaining About Globalization Is Pointless

Europe Is Falling Behind
Complaining about globalization is as pointless as trying to turn back the tide. Asian competition can't be shut out; it can only be beaten. And now, by every relative measure of a modern economy, Europe is lagging.

http://www.msnbc.msn.com/id/11020913/site/newsweek/

By Tony Blair

Issues 2006 - It was Canute, one of the first English kings, who is said to have demonstrated the limits of his powers by showing that the tide would not obey his orders. Hearing some of the debates on globalization, I sometimes feel Canute needs to get his feet wet again.

Complaining about globalization is as pointless as trying to turn back the tide. There are, I notice, no such debates in China. They are not worrying about potential threats but are busy seizing the opportunities in ways that are transforming their society and ours as well. So, too, are the other emerging economies in Asia and South America. I am proud that the United Kingdom's economy has grown twice as fast as Germany's and four times as fast as Japan's since 1997. I am, however, painfully aware that China has been growing three times as fast as the U. K.

Each of these fast-developing economic powerhouses has labor costs a fraction of those in Europe and North America. All can import technology and are working hard to develop their own. Foreign capital is flowing in to help them. We have to understand that competition can't be shut out. In the end, it can only be beaten.

As I told the Labour Party in September, the new world we now find ourselves inhabiting is indifferent to tradition and past reputations, unforgiving of frailty and ignorant of custom and practice. Success will go to those companies and countries which are swift to adapt, slow to complain, open and willing to change. The task of modern governments is to ensure that our countries can rise to this challenge.

We know, too, what has to be done. There is no secret recipe for economic success. The difficulty is getting all the right ingredients in place. Successful countries need a stable economic framework so firms, and families, can plan with confidence. They need open markets, strong encouragement of enterprise with labor-market flexibility to foster dynamism and adaptability. And, more important today than ever, they need sustained investment in science, education and lifelong learning to make the most of the skills and talents of all their people—to create, in fact, true knowledge economies.

We can already see how important education and skills are for individual and collective prosperity. At every level, those with good qualifications do better than those without. On a global scale, half the increase in the annual growth of productivity comes from new ideas and ways of doing things. The fastest-growing cities in America and Europe are those with the highest proportion of knowledge workers.

Britain should be well placed to take advantage of this new emphasis on knowledge. We have something like 24 of the world's top 200 universities with significant strengths in science and technology. For a relatively small country, we have a remarkable concentration of creative and knowledge industries. In design, advertising, music, film, fashion, information technology and television, we are world leaders.

But there is no room for complacency. The U.K. and Europe—already lag badly behind the United States, with the emerging economies catching up at a breathtaking pace. Nearly three out of four of the world's top information-technology companies and almost half the top 300 firms ranked by R&D spending are American. India is producing more science graduates than Europe. China has trebled its spending on research and development in the last five years. On any relative index of a modern economy—skills, R&D, patents, IT—Europe is falling behind.

In the U.K., we have begun to put this right. And we have done so by demonstrating that economic competence and social justice go hand in hand—indeed must do—if we are to succeed in this new global en-vironment. The countries which succeed will be those which make the most of all the talent and potential of their people.

We are delivering the economic stability which businesses need to prosper. Inflation and interest rates have remained low; employment is at its highest and growth at its most sustained since records began. We have resisted demands to reinstate union laws repealed in the '80s and are working hard to cut unnecessary bureaucratic burdens on business—both domestically and from Europe—although I accept that more needs to be done. But, at the same time, we have improved individual rights and safeguards through a national minimum wage, better maternity and paternity support and protection against discrimination.

In the last few years, our great regional cities, and their economies, have been transformed through a new partnership between the public and private sectors. We are encouraging investment in RD through new tax help, and have given extra support to small businesses.

We have also put sustained investment into education. One of the biggest challenges we faced on coming to power was that decades of chronic neglect and under-investment had taken a heavy toll on our science and educational infrastructure and standards. Thanks to this record investment allied to reform, we have thousands more teachers, modernized school buildings, improved literacy and numeracy and rising standards at all school ages. We understand, too, the importance for our future of the health and well-being of our youngest children. We have increased support for families, expanded hugely the number of nursery places and put in place specific programs like Sure Start to help families in the most deprived neighborhoods.

In higher education, too, we have made radical reforms. Few countries in Europe now can match the proportion of young people already going to university in the U.K., but we intend to raise that share to more than 50 percent. Our new student-finance system will improve access for poorer students and increase funding for universities. We are investing unprecedented amounts in modernizing science laboratories, and building links between our universities and business through new science parks. We have massively expanded, in partnership with business, modern apprenticeships and workplace learning initiatives. Through the training and opportunities available in our New Deal program, we have virtually eliminated long-term youth unemployment.

This emphasis on enterprise, on education and skills, and partnership is central to our ambition of boosting social mobility, tackling poverty and spreading prosperity. So I am always mystified by suggestions that somehow New Labour wants to abandon the European social model. That's not our intention. Nor would it be the answer to our problems. On the contrary, a social dimension is more important than ever because the tasks we face can never be overcome solely by the private sector. The markets alone, for example, will never create a knowledge economy.

We do, however, want to modernize a model which, whatever its strengths, has left 20 million out of work across Europe and generates productivity growth much slower than America's. The purpose of social policies must be to enhance our ability to compete, to help our people cope with globalization, to let them embrace its opportunities and avoid its dangers. This is the modern social policy that is needed—investment in education, skills and science, not regulation and job protection that may save some jobs temporarily but only at the expense of far more jobs in the future.

This is a view increasingly understood not just in the U.K. but across Europe. I believe it is already shaping Europe's agenda. If it does, we should have no reason to fear the challenges of globalization and the knowledge economy. We should relish them.

Blair is prime minister of the U.K.

© 2006 Newsweek, Inc.

It was Canute, one of the first English kings, who is said to have demonstrated the limits of his powers by showing that the tide would not obey his orders. Hearing some of the debates on globalization, I sometimes feel Canute needs to get his feet wet again. [Those who feel threatened by the process known as 'globalisation' are just reactionary old fools who think that the world economy should serve them, rather than vice versa]

Complaining about globalization is as pointless as trying to turn back the tide. There are, I notice, no such debates in China. They are not worrying about potential threats but are busy seizing the opportunities in ways that are transforming their society and ours as well. [I am purposely ignoring the 87,00 0 'mass incidents' in China in the last year alone.]

So, too, are the other emerging economies in Asia and South America. [I am also ignoring the protests in these countries - especially the anti-WTO protests in Hong Kong. I will make no mention of the slave labour conditions many of these 'dynamic economies' rely on to be competetive. I will aslo forget about the Asian crash of the late 90s].

I am proud that the United Kingdom's economy has grown twice as fast as Germany's and four times as fast as Japan's since 1997. [Nyer! Nyer! And we won the World Cup in 1966. So there!]

I am, however, painfully aware that China has been growing three times as fast as the U.K. Each of these fast-developing economic powerhouses has labor costs a fraction of those in Europe and North America. [These economies pay their workers far far less than we in the West, and have crap condidtions and securities. This is a good thing and something that should be emulated by us]

All can import technology and are working hard to develop their own. Foreign capital is flowing in to help them. We have to understand that competition can't be shut out. In the end, it can only be beaten. [We have to understand that instead of a world solidarity campaign to unionise all workers in every country and for an international Labour Code and Minimum Wage, we instead have to drive down wages and conditions at home. This will make us 'competetive']

As I told the Labour Party in September, the new world we now find ourselves inhabiting is indifferent to tradition and past reputations, unforgiving of frailty and ignorant of custom and practice. Success will go to those companies and countries which are swift to adapt, slow to complain, open and willing to change. The task of modern governments is to ensure that our countries can rise to this challenge. [Whatever sorry misconception the old gurad of my 'social democratic' party think, the role of government is no longer to facilitate the well being of every citizen, but to facilitate the corporatocracy]

We know, too, what has to be done. There is no secret recipe for economic success. The difficulty is getting all the right ingredients in place. Successful countries need a stable economic framework so firms, and families, can plan with confidence. They need open markets, strong encouragement of enterprise with labor-market flexibility to foster dynamism and adaptability. And, more important today than ever, they need sustained investment in science, education and lifelong learning to make the most of the skills and talents of all their people—to create, in fact, true knowledge economies. [We want to privatise everything under the sun, including the health and education systems. We need workers are educated not to do silly things like form unions, take collective action, demand higher wages and better working conditions. These are things of the past]

We can already see how important education and skills are for individual and collective prosperity. At every level, those with good qualifications do better than those without. On a global scale, half the increase in the annual growth of productivity comes from new ideas and ways of doing things. The fastest-growing cities in America and Europe are those with the highest proportion of knowledge workers. [Forget about manufacturing, thats all going to Asia. We now need these mysterious sounding 'knowledge workers'. And they need to have individualsist ideas fostered froma young age so that they can benefit teh only collective that matters - the corporatocracy]

Britain should be well placed to take advantage of this new emphasis on knowledge. We have something like 24 of the world's top 200 universities with significant strengths in science and technology. For a relatively small country, we have a remarkable concentration of creative and knowledge industries. In design, advertising, music, film, fashion, information technology and television, we are world leaders. [We're great we are. GREAT Britain!]

But there is no room for complacency. The U.K. and Europe—already lag badly behind the United States, with the emerging economies catching up at a breathtaking pace. Nearly three out of four of the world's top information-technology companies and almost half the top 300 firms ranked by R&D spending are American. India is producing more science graduates than Europe. China has trebled its spending on research and development in the last five years. On any relative index of a modern economy—skills, R&D, patents, IT—Europe is falling behind. [We need more spending on R&D and less on social services]

In the U.K., we have begun to put this right. And we have done so by demonstrating that economic competence and social justice go hand in hand—indeed must do—if we are to succeed in this new global en-vironment. The countries which succeed will be those which make the most of all the talent and potential of their people. [Something to pacify the malcontents, yeah we believe in 'social justice'.]

We are delivering the economic stability which businesses need to prosper. Inflation and interest rates have remained low; employment is at its highest and growth at its most sustained since records began. [We are succeding in driving down wages and conditions, but much more must be done]

We have resisted demands to reinstate union laws repealed in the '80s and are working hard to cut unnecessary bureaucratic burdens on business—both domestically and from Europe—although I accept that more needs to be done. [As a so-called social democratic party, we have basically sold out every principle we used to stand for]

But, at the same time, we have improved individual rights and safeguards through a national minimum wage, better maternity and paternity support and protection against discrimination. [Just ignore the crapness of the minimum wage, and that it doesn't affect people under 21, and pay no heed to the police state powers I want to implement in the wake of 7/7]

In the last few years, our great regional cities, and their economies, have been transformed through a new partnership between the public and private sectors. We are encouraging investment in RD through new tax help, and have given extra support to small businesses. [Isn't 'Welfare for the Wealthy' a great thing?]

We have also put sustained investment into education. One of the biggest challenges we faced on coming to power was that decades of chronic neglect and under-investment had taken a heavy toll on our science and educational infrastructure and standards. Thanks to this record investment allied to reform, we have thousands more teachers, modernized school buildings, improved literacy and numeracy and rising standards at all school ages. We understand, too, the importance for our future of the health and well-being of our youngest children. We have increased support for families, expanded hugely the number of nursery places and put in place specific programs like Sure Start to help families in the most deprived neighborhoods. [We want to privatise education, and from now on there will be competition in the schoolroom]

In higher education, too, we have made radical reforms. Few countries in Europe now can match the proportion of young people already going to university in the U.K., but we intend to raise that share to more than 50 percent. Our new student-finance system will improve access for poorer students and increase funding for universities. We are investing unprecedented amounts in modernizing science laboratories, and building links between our universities and business through new science parks. We have massively expanded, in partnership with business, modern apprenticeships and workplace learning initiatives. Through the training and opportunities available in our New Deal program, we have virtually eliminated long-term youth unemployment. [We got rid of free third level education and called it a 'reform'. We also force young people to work whatever jobs are available, even if they are crap low paid McJobs. If they don;t they don't get welfare money]

This emphasis on enterprise, on education and skills, and partnership is central to our ambition of boosting social mobility, tackling poverty and spreading prosperity. [Somehow, by magic I suppose, Big Business is going to eliminate poverty. Liek it has done is Africa, Asia and Latin America]

So I am always mystified by suggestions that somehow New Labour wants to abandon the European social model. That's not our intention. Nor would it be the answer to our problems. On the contrary, a social dimension is more important than ever because the tasks we face can never be overcome solely by the private sector. The markets alone, for example, will never create a knowledge economy. [Please don't say we're not social democratic. We are. Where's the proof? Well, I said it, is that not good enough for you? You must be a terrorist! Ok we are social democratic becasue we believe the State should create good little workers free from dangerous ideas for the capitalist system]

We do, however, want to modernize a model which, whatever its strengths, has left 20 million out of work across Europe and generates productivity growth much slower than America's. The purpose of social policies must be to enhance our ability to compete, to help our people cope with globalization, to let them embrace its opportunities and avoid its dangers. This is the modern social policy that is needed—investment in education, skills and science, not regulation and job protection that may save some jobs temporarily but only at the expense of far more jobs in the future. [Unions can go fuck themselves. Their day is over]

This is a view increasingly understood not just in the U.K. but across Europe. I believe it is already shaping Europe's agenda. If it does, we should have no reason to fear the challenges of globalization and the knowledge economy. We should relish them. [I look forward to a Britain, and world, without unions, without solidarity, without collective action, where individualism is the religion and the Market is God.]


I happen to agree though, complaining about 'globalisation' is futile - only international collective action can ensure a decent life for every person on this planet.