£40bn, for what?

It’s about 24 hours or so since the announcement that the government is, after all, going to break up the banks they own. The re-discovery of old banking creatures inside the belly of Lloyds and RBS – Williams & Glyn’s, TSB and so on – is proof of what some of us have been saying all year.

But having thought about it for a day or so, it seems to me that – heavens – it is so incredibly timid. Ten per cent of bank branches will change hands. There are only 170 branches per million people in the UK, compared to 520 in Germany and 960 in France. It is barely going to touch that problem. Nor will it give us the huge diversity of banking that they have to support local economies in the USA.

As much as £40 billion and still nothing like the lending infrastructure we so desperately need.

What we actually need, it seems to me, is something equivalent of the Community Reinvestment Act in the USA (1977). By insisting that banks reveal where they are lending money, American banks have been persuaded to disgorge very large sums over a generation to new local lending institutions, for regeneration, low cost homes and small enterprise.

We badly need the same. I don’t understand why UK politicians are so timid when it comes to these matters, that the CRA has barely featured in debate. What is the matter with us?

Beware a world without the post

Since the Royal Mail seems intent on ritual disembowelling before our very eyes, I suppose we are going to have to expect to deal a lot more with the private courier companies.

I had a delivery from one called City Link this morning. I was taking the children to school, and when I got back there was a card with various options, none of them ticked. There was a phone number which took me through to a comouterised system which would only tell me that I had to contact the sender to get permission for another delivery (I didn't know, of course, who that was). There was no human option.

After I pressed 0 and # in no particular order 40 or so times, I got a message giving me a customer service number. They told me they could, after all, try and deliver again, but said they would only say they would come some time the following day. The children will still have to go to school, so it seems unlikely that I'm going to get my parcel - and why should I go all the way to Beckenham to pick it up?

Welcome to the world without Royal Mail.

The new frontiers

I went to the annual Schumacher lectures in Bristol on Saturday, and fascinating it was. In fact, so fascinating, that it has led me to try to put into words a bit better why I feel so frustrated with political parties at the moment – even my own.

It wasn’t that I heard anything especially new – though there were some fascinating insights – it was the sheer energy in the room that made me realise how much the world outside politics is shifting.

The Schumacher Lectures have toddled along for decades on the fringes of the mainstream, but something is happening. The huge conference hall next to the Bristol City Council chamber was packed with 400 people who showed up. My own workshop on the future of money attracted 150 people the first time, and another 100 the second time I ran it an hour later. We lefties are not used to workshops on quite that scale.

Those who came were imaginative, intelligent and interesting. I noticed a number of Lib Dems in the audience too, which was reassuring (hello Paul, George, etc!) I would say they were all pretty committed to the idea that serious changes are needed in our economics and politics because of the climate, energy and financial crisis. But they also believed in the future. They know it’s going to be different.

So why do I find myself, in mainstream political policy discussions, slogging through the same old arguments about taxing, spending and the size of the state, which we were doing three decades ago?

It isn’t that the outcomes are unimportant. I’m as committed as the next person to a fairer, more equal society. But I’m also aware of how little has been achieved in the conventional Beveridge consensus, or the privatising Thatcherite one that followed it. And if Liberal Democrats aren’t in the forefront of new thinking, who is? But are we?

We can learn from Elinor Ostrom

Elinor Ostrom’s Nobel prize for economics is good news for Liberals everywhere, but it is also a challenge for Liberal Democrats. Her work on conserving the commons has set out an effective and efficient third way beyond state control and privatisation, and it relies on local networks, local negotiation and local knowledge. And, I may say, also beyond Tony Blair’s fake Third Way too.

Lib Dems have been a little lazy over the past generation about struggling to articulate this inherently Liberal option, taking for granted – for example – that it is their role to defend state solutions, or that somehow the promise of corporate solutions (GM food, for example) have to be taken at face value.

But the real importance of Ostrom’s work isn’t so much the commons, as has been reported in this country. It is her pioneering work on co-production.

It was her team at Indiana University who were called in by the Chicago police in the 1970s to explain why crime went up when the police started using patrol cars, rather than staying in touch with people on the beat. She coined the term ‘co-production’ to mean that crucial element of policing – or any other public service – that has to be provided by the service users or the public.

She explained how centralised, technocratic systems – like so many of our own under Blair and Brown – corrode this co-operation, encouraging a division in public services between exhausted, target-driven professionals and passive recipients, who are supposed to be quiet, grateful and to mould themselves into whatever shape is most efficient for delivery. She explained how this leads to failure and inefficiency.

The co-production idea has been developed since by the civil rights lawyer Edgar Cahn into a major critique of public services, and the beginnings of an explanation for why Beveridge’s giants are still alive and well 67 years after his report.

And all because of Elinor Ostrom. Lib Dems would do well to use her as a model.

Detained under the Terrorism Act

Well, I can’t say this has ever happened to me before – I’ve just been detained under Section 44 of the Terrorism Act.

That only meant being searched on Victoria Station, but still a surprise. It was particularly a surprise for three reasons. First, the embarrassed look on the British Transport Police officer who stopped me. I felt rather sorry for him.

Second, why it should take three of them to do it – one to search, one to hold a clipboard and one to stand around watching? It can’t have been target driven and I couldn’t help wondering whether there was some other priority that might have better taken their time.

Finally, why they stopped me. I asked them this and, after some persuasion, they said it was my stripy shirt. Apparently it made me stick out like a sore thumb. I don’t actually believe this, especially as the form I received as a souvenir said they are not actually allowed to stop someone because of their clothes. And after all, what is it about terrorists that make them wear multi-coloured striped shirts?

No, I’m sure they stopped me because they couldn’t categorise me – dressed like a tourist (white shorts, white socks), carrying piles of papers on my way to a library, evidently either unemployed or self-employed. What does this mean? I suppose, like so much else in New Labour Britain, it means that people and families who look non-standard are under increasing suspicion, whether it is as potential terrorists or child abusers.

The police were nice about it, though, and it kind of made my day. Also, most important, it gave me something to write about here.

Well done, Pullman, Horovitz, Morpurgo and Fine

I must say, I cheered when I read about Philip Pullman and his friends, and their brave stand against the government’s latest child protection database horror.

I absolutely endorse what Pullman says. Like CRB checks for people working with children, this kind of database simply gives the illusion of safety, and by doing so makes people less vigilant. In fact, like so much New Labour regulation, it punishes, frustrates and molests people who comply, but makes it easier for those who don’t – the real fraudsters or paedophiles – to slip through the net.

It is also a brave stand they are taking. It isn’t easy to defy the combined weight of the Sun, the NSPCC and the government, and only people of Pullman’s stature can risk it.

This is the real point. Very slowly, we are constructing a new kind of tyranny here, of suspicion and anonymous informants, which presses most heavily on non-standard families – on anyone who lives their lives a little differently. Who opts out of the school system, for example, or who has unusual approaches to fidelity or marriage.

By doing so, and by transforming professions like social workers and health visitors into checklist gatherers – policing those who stand out – we are creating a gulf between the professionals and those they are supposed to help. No wonder my new local Children’s Centre is almost completely empty.

This is a recipe for child protection failure. It will make more Baby Peters considerably more likely. I also find it increasingly scary, a new tyranny that Liberals everywhere need to challenge – not just because it is tyrannical and intolerant, but because it is supremely ineffective. How can it successfully protect children if every parent, and every adult who works with children, comes under suspicion?

I’m a member of the party’s federal policy committee, and as such am sworn to secrecy about debates there. But this week, we did briefly have a discussion about child protection, and I took my courage in my hands and said what I’ve repeated here, though I was even less articulate than usual. People listened politely and that was that.

Within five minutes of the meeting finishing, no less than four other members of the committee had come up to me and said they agreed with me.

To be fair, they none of them said they agreed with everything I said. But I thought about it afterwards and wondered whether the subtle tyranny was sharper than I’d realised. I’m sure none of them were too intimidated to agree with me in public – we all know each other, after all – and yet none of them did.

That’s why Pullman and his friends are brave, but not brave enough to go it alone. They knew they had to announce their defiance as a group.

The prize for cultural ignorance goes to Hampshire

The real motive power behind fascism isn’t racism or monopoly power or any of the other aspects that scare us about the BNP. Those things will never inspire the nation – or not our nation anyway. The power lies in its romanticism. Fine within limits, but when the authoritarians team up with the romantics, the imperialist dreamers, the folk historians and the cultural snobs, then you’ve got trouble.

I believe that is why the European nations which dumped their empires and their monarchies during the 20th century nearly all flirted with fascism at some point. Monarchies are safe conduits for this national romanticism. They render it harmless.

The point I’m trying to make in this roundabout way is that folklore and history is important politically. When it is misused, it encourages extremists and nationalists. When it is suppressed, it encourages them too.

So imagine my surprise, when I arrived at Danebury hill fort in Hampshire on Midsummer’s Day, an important Iron Age site, to find a notice from the county council explaining that this was the summer equinox – and setting out an absolutely bizarre outline of traditional midsummer beliefs and rituals.

Kostrub? Surely there was no celtic deity called that, I asked myself. Baked larks called zhaivoronky? I don’t think so.

I concluded that Hampshire County Council was so staggeringly ignorant of our national heritage that they had muddled it up with somebody else’s. A quick look on the internet confirms it. The county council’s notice was taken word-for-word from a website called ‘Spring Rituals’
http://www.encyclopediaofukraine.com/pages/S/P/Springrituals.htm

As you can see from the address, it is taken from the Encyclopaedia of Ukraine. What does this mean?