The illusion of a world without borders

Twenty years after the fall of the Berlin Wall, the discourse of security has replaced dreams of dem

The fall of the Berlin Wall 20 years ago is rightly taken as a symbol, not just of the ending of an oppressive regime, but of the dismantling of a monstrous barrier between families, communities and societies. It also marked the moment when a new, more "borderless" world seemed upon us.

It is good that we can celebrate the demise of that ugly institution this week. But we should bear in mind as we do so that, around the world, there remain many walls that still keep loved ones apart, workers from their places of work, and communities from joining together.

In the early 1990s, it was widely felt in academic and policymaking circles that, after communism, the "end of history" was upon us. As the internet hooked up those with access to computers, as air travel became ever cheaper, and as the increasing liquidity of capital saw more wealth moved around the globe than ever before, this became -- through the dogma of globalisation -- the prevailing view in the west.

But, for many, the idea of a borderless world was never much more than a convenient phrase, used to justify an increasingly aggressive capitalism. And post-9/11, it has certainly become much harder to maintain the view that we live in a hyper-globalised world where international movement is as easy as waving a passport at the border.

Even for those with the luxury of travelling wherever and whenever they want, the lengthening queues at the airport and increasingly intrusive identity checks are emblematic of the constraints that have been set on this freedom. More importantly, for others, the post-9/11 world has brought the introduction of new borders and divides every bit as unbridgeable as the Berlin Wall.

This is obvious in places where today's Berlin Walls take an equally physical and imperious form (as in the case of the Israel-West Bank barrier, for example). There the border is every bit as ideologically invested as the East-West German border was, and the sufferance caused every bit as stark. It is less obvious, but no less important, however, where the borders between people are enforced by more subtle, insinuating forms.

The plethora of biometric profiling techniques and border-tightening measures that nation states have erected over recent years in the name of national security is a case in point. On the US-Canadian border, for example, where the NEXUS system is used to keep perfectly legitimate but economically less desirable migrants out of a country in order to cherry-pick the workforce. Or as in the UK, where the idea of "hardening" the border was last week floated by the chairman of the parliamentary intelligence and security committee, Kim Howells, as an alternative to stepping up the war in Afghanistan. These border controls may be raised in the name of national security, but one only needs to stand in line at customs to appreciate how their operation is so readily inflected by class, race and ethnicity.

Such developments are the product not of a borderless world, but of what some call "gated globalism": a world of borders policed in the name of underexamined aims (such as "security"), where freedom of movement for some comes at the price of greater restrictions for others. These are the actually existing freedoms of today's neoliberalised boundaries, their effects far less visible than those of a wall, but their implications for many no less damaging.

So perhaps less has changed in the course of two decades than we might like to think. The idea of a borderless world was an illusion of the excessive western triumphalism of the 1990s. Today it remains an illusion, but because of excessive western anxiety. The figure of the terrorist has replaced the communist "other" and the discourse of security replaces the dogma of one-size-fits-all democracy. The only difference, in fact, is that those technological developments that promised the death of geography in the 1990s now herald its return. For those whose ability to move is restricted on account of where they come from, or beccause of what they believe, today's borders are indeed every bit as impregnable as the Berlin Wall.

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The Autumn Statement proved it – we need a real alternative to austerity, now

Theresa May’s Tories have missed their chance to rescue the British economy.

After six wasted years of failed Conservative austerity measures, Philip Hammond had the opportunity last month in the Autumn Statement to change course and put in place the economic policies that would deliver greater prosperity, and make sure it was fairly shared.

Instead, he chose to continue with cuts to public services and in-work benefits while failing to deliver the scale of investment needed to secure future prosperity. The sense of betrayal is palpable.

The headline figures are grim. An analysis by the Institute for Fiscal Studies shows that real wages will not recover their 2008 levels even after 2020. The Tories are overseeing a lost decade in earnings that is, in the words Paul Johnson, the director of the IFS, “dreadful” and unprecedented in modern British history.

Meanwhile, the Treasury’s own analysis shows the cuts falling hardest on the poorest 30 per cent of the population. The Office for Budget Responsibility has reported that it expects a £122bn worsening in the public finances over the next five years. Of this, less than half – £59bn – is due to the Tories’ shambolic handling of Brexit. Most of the rest is thanks to their mishandling of the domestic economy.

 

Time to invest

The Tories may think that those people who are “just about managing” are an electoral demographic, but for Labour they are our friends, neighbours and the people we represent. People in all walks of life needed something better from this government, but the Autumn Statement was a betrayal of the hopes that they tried to raise beforehand.

Because the Tories cut when they should have invested, we now have a fundamentally weak economy that is unprepared for the challenges of Brexit. Low investment has meant that instead of installing new machinery, or building the new infrastructure that would support productive high-wage jobs, we have an economy that is more and more dependent on low-productivity, low-paid work. Every hour worked in the US, Germany or France produces on average a third more than an hour of work here.

Labour has different priorities. We will deliver the necessary investment in infrastructure and research funding, and back it up with an industrial strategy that can sustain well-paid, secure jobs in the industries of the future such as renewables. We will fight for Britain’s continued tariff-free access to the single market. We will reverse the tax giveaways to the mega-rich and the giant companies, instead using the money to make sure the NHS and our education system are properly funded. In 2020 we will introduce a real living wage, expected to be £10 an hour, to make sure every job pays a wage you can actually live on. And we will rebuild and transform our economy so no one and no community is left behind.

 

May’s missing alternative

This week, the Bank of England governor, Mark Carney, gave an important speech in which he hit the proverbial nail on the head. He was completely right to point out that societies need to redistribute the gains from trade and technology, and to educate and empower their citizens. We are going through a lost decade of earnings growth, as Carney highlights, and the crisis of productivity will not be solved without major government investment, backed up by an industrial strategy that can deliver growth.

Labour in government is committed to tackling the challenges of rising inequality, low wage growth, and driving up Britain’s productivity growth. But it is becoming clearer each day since Theresa May became Prime Minister that she, like her predecessor, has no credible solutions to the challenges our economy faces.

 

Crisis in Italy

The Italian people have decisively rejected the changes to their constitution proposed by Prime Minister Matteo Renzi, with nearly 60 per cent voting No. The Italian economy has not grown for close to two decades. A succession of governments has attempted to introduce free-market policies, including slashing pensions and undermining rights at work, but these have had little impact.

Renzi wanted extra powers to push through more free-market reforms, but he has now resigned after encountering opposition from across the Italian political spectrum. The absence of growth has left Italian banks with €360bn of loans that are not being repaid. Usually, these debts would be written off, but Italian banks lack the reserves to be able to absorb the losses. They need outside assistance to survive.

 

Bail in or bail out

The oldest bank in the world, Monte dei Paschi di Siena, needs €5bn before the end of the year if it is to avoid collapse. Renzi had arranged a financing deal but this is now under threat. Under new EU rules, governments are not allowed to bail out banks, like in the 2008 crisis. This is intended to protect taxpayers. Instead, bank investors are supposed to take a loss through a “bail-in”.

Unusually, however, Italian bank investors are not only big financial institutions such as insurance companies, but ordinary households. One-third of all Italian bank bonds are held by households, so a bail-in would hit them hard. And should Italy’s banks fail, the danger is that investors will pull money out of banks across Europe, causing further failures. British banks have been reducing their investments in Italy, but concerned UK regulators have asked recently for details of their exposure.

John McDonnell is the shadow chancellor


John McDonnell is Labour MP for Hayes and Harlington and has been shadow chancellor since September 2015. 

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump