Remembering Greenham Common

Kate Hudson, General Secretary of CND, recalls her first trip to Greenham Common.

Twenty five years ago this week, on 12th December 1982, I got up very early, and went by coach with other bleary-eyed women, from Islington to Greenham Common. Our intention was to surround the nine mile perimeter fence of the US air force base, where 96 US cruise missiles were to be delivered a year later.

Thirty thousand of us made it there that morning, and we did link arms and embrace the base. I remember it as a chaotic day, much of it seemed spent in darkness, not knowing where I was, or what I was supposed to be doing. Above all I remember that enormous fence, decorated with all manner of things – often symbols of life, children’s toys and pictures.

But we all knew why we were there. The US was planning to put a new generation of missiles in Europe. These would be a massive escalation of the arms race, because they would greatly reduce the time it took to hit Soviet cities such as Moscow from bases in western Europe, without also putting state-of-the-art missiles closer to the population centres of the US.

The siting of Soviet SS-20s was used as a justification for introducing the new missiles, but the SS-20s did not have the capacity to strike the US. This raised the spectre of a "limited nuclear war" in Europe, with western and eastern Europe, and the European parts of the Soviet Union in the battleground. US territory would not be involved. This produced a reaction of extreme alarm, not only from the inhabitants of the countries where the war was likely to take place, but also where the missiles were to be deployed. They would be obvious targets.

Outrage at these plans led to the largest mass protests since the second world war, anti-missiles groups grew up all over the country, and CND, which grew exponentially, organised massive demonstrations.

Other forms of protest developed too. In August 1981, a group of 36 women, called Women for Life on Earth, together with a few men, walked from Cardiff to the base at Greenham Common. When they arrived, they demanded a discussion about nuclear weapons with the government. But it wasn’t forthcoming, so they decided to set up a peace camp at the base.

In 1982, the camp became women only, with a strong feminist emphasis. In the following months and years, thousands of women settled at Greenham at various times, blocked the gates, pulled down parts of the fence, danced on the missile silos, and creatively expressed our opposition to the missiles.

That creativity often left the authorities nonplussed. In February 1983, the first major trial of the women took place at Newbury, and Sarah Benton reported it in the New Statesman at the time:

The magistrates had left the court to consider their decision. Inside, 44 women were on trial; at the back of the room sat a score of women supporters. As the magistrates walked out, 30 police officers unexpectedly filed in and, standing shoulder to shoulder, lined up in front of the supporters, preventing them from seeing the defendants and, presumably, from engaging in one of those wilful and anarchic gestures against authority which have been the women’s hallmark so far. Reacting in unspoken accord, defendants and supporters rose, stood on their chairs and, leaning over the police officers’ heads, held hands. Then they began to sing, and continued to sing after the magistrates had returned, banged their gavels and cried in exasperation "Ladies, please".

Such was the spirit of the Greenham women, which continues to inspire peace activists around the world. The missiles were finally removed in 1991, under the terms of the Intermediate-range Nuclear Forces Treaty, a major disarmament treaty signed in 1987, by Reagan and Gorbachev.

There can be little doubt that the extent of popular opposition to the new missiles helped shape their decision to take steps towards nuclear disarmament. As we remember those struggles and celebrate them, now is the time to make that popular opposition overwhelming once again.

10 December 2007.

Dexter Dalwood's "Greenham Common", shortlisted for the Turner Prize in 2010. Photo: Getty.
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Labour's investment bank plan could help fix our damaging financial system

The UK should learn from the success of a similar project in Germany.

Labour’s election manifesto has proved controversial, with the Tories and the right-wing media claiming it would take us back to the 1970s. But it contains at least one excellent idea which is certainly not out-dated and which would in fact help to address a key problem in our post-financial-crisis world.

Even setting aside the damage wrought by the 2008 crash, it’s clear the UK’s financial sector is not serving the real economy. The New Economics Foundation recently revealed that fewer than 10% of the total stock of UK bank loans are to non-financial and non-real estate businesses. The majority of their lending goes to other financial sector firms, insurance and pension funds, consumer finance, and commercial real estate.

Labour’s proposed UK Investment Bank would be a welcome antidote to a financial system that is too often damaging or simply useless. There are many successful examples of public development banks in the world’s fastest-growing economies, such as China and Korea. However, the UK can look closer to home for a suitable model: the KfW in Germany (not exactly a country known for ‘disastrous socialist policies’). With assets of over 500bn, the KfW is the world’s largest state-owned development bank when its size is measured as a percentage of GDP, and it is an institution from which the UK can draw much-needed lessons if it wishes to create a financial system more beneficial to the real economy.

Where does the money come from? Although KfW’s initial paid-up capital stems purely from public sources, it currently funds itself mainly through borrowing cheaply on the international capital markets with a federal government guarantee,  AA+ rating, and safe haven status for its public securities. With its own high ratings, the UK could easily follow this model, allowing its bank to borrow very cheaply. These activities would not add to the long-run public debt either: by definition an investment bank would invest in projects that would stimulate growth.

Aside from the obviously countercyclical role KfW played during the financial crisis, ramping up total business volume by over 40 per cent between 2007 and 2011 while UK banks became risk averse and caused a credit crunch, it also plays an important part in financing key sectors of the real economy that would otherwise have trouble accessing funds. This includes investment in research and innovation, and special programs for SMEs. Thanks to KfW, as well as an extensive network of regional and savings banks, fewer German SMEs report access to finance as a major problem than in comparator Euro area countries.

The Conservatives have talked a great deal about the need to rebalance the UK economy towards manufacturing. However, a real industrial policy needs more than just empty rhetoric: it needs finance. The KfW has historically played an important role in promoting German manufacturing, both at home and abroad, and to this day continues to provide finance to encourage the export of high-value-added German products

KfW works by on-lending most of its funds through the private banking system. This means that far from being the equivalent of a nationalisation, a public development bank can coexist without competing with the rest of the financial system. Like the UK, Germany has its share of large investment banks, some of which have caused massive instabilities. It is important to note that the establishment of a public bank would not have a negative effect on existing private banks, because in the short term, the UK will remain heavily dependent on financial services.

The main problem with Labour’s proposal is therefore not that too much of the financial sector will be publicly owned, but too little. Its proposed lending volume of £250bn over 10 years is small compared to the KfW’s total financing commitments of  750 billion over the past 10 years. Although the proposal is better than nothing, in order to be effective a public development bank will need to have sufficient scale.

Finally, although Brexit might make it marginally easier to establish the UK Investment Bank, because the country would no longer be constrained by EU State Aid Rules or the Maastricht criteria, it is worth remembering that KfW’s sizeable range of activities is perfectly legal under current EU rules.

So Europe cannot be blamed for holding back UK financial sector reform to date - the problem is simply a lack of political will in the current government. And with even key architects of 1980s financial liberalisation, such as the IMF and the economist Jeffrey Sachs, rethinking the role of the financial sector, isn’t it time Britain did the same?

Dr Natalya Naqvi is a research fellow at University College and the Blavatnik School of Government, University of Oxford, where she focuses on the role of the state and the financial sector in economic development

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