Obama and the Dalai Lama – more empty words and confusion over Tibet

This exchange will achieve nothing for the Tibetans.

Perhaps it is one area where President Obama feels he can afford to act tough, but news that he will meet the Dalai Lama despite Chinese protests is hardly going to do anything to improve relations already strained over US weapons sales to Taiwan, which mainland China claims as its own territory.

Frankly, this seems to me to be the kind of empty posturing, frequently displayed in relation to the Burmese junta, that salves the consciences of the participants and makes no difference whatsoever to the people with whose plight we claim to be so concerned. To the Americans, this may simply be a meeting with the one religious leader in the world who, curiously, never seems to be subject to any kind of scrutiny -- a "living saint", as I have observed here before.

But given that this exchange will achieve precisely nothing in terms of ameliorating the lot of Tibetans (an outcome on which I would be prepared to bet a tidy sum), one can't help wondering what the point is of deliberately irritating Beijing in this way. For that it will annoy the Chinese is the one thing that is not in doubt.

History gives them good reason to resent foreign interference. Isabel Hilton wrote recently in the NS about the tensions between India and China over the Indian state of Arunachal Pradesh, which the Chinese consider to be part of Tibet and thus their land, too.

And where do we find the origin of that particular carve-up of territory? In the Simla Accord of 1914, another treaty imposed by a western power and which resulted in the McMahon Line that divides the two neighbours.

A warning light should flash up whenever you hear of one of these lines. Think of the Durand Line that marks the boundary between Pakistan and Afghanistan, or the Sykes-Picot Line that ran through the former Ottoman Empire after the First World War. Both instances of western powers creating borders that suited their purpose, but which failed to take account of local histories and allegiances.

A warm stance towards the Dalai Lama always plays well, but it is undermined by Britain's abandonment last year of the principle that China was the suzerain, but not the sovereign, power over Tibet. David Miliband dismissed the distinction as "anachronistic", but it is one that has had wide and important consequences in the region.

Thailand, for instance, only managed to resist European colonisation in the late 19th and early 20th centuries by ceding territories over which it had suzerainty -- what are now the four northern states of Malaysia to the British in 1909, and Laos to the French in 1893 and 1907 -- while retaining independence for the Siamese heartland.

The distinction enshrined in the Simla Accord, that China had overlord but not sovereign status, was important for Tibet. As Steve Tsang of St Antony's College, Oxford, points out: ''Britain has officially accepted what it had acknowledged earlier; but China will use this."

So we have aggressive posturing, ignorance of history, and friendly words that are contradicted by our actions. One could shrug one's shoulders and say that this is all in the grand tradition of utterly confused western foreign policy. But surely we realise by now that how we treat China is going to have long and momentous repercussions in this century?


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Sholto Byrnes is a Contributing Editor to the New Statesman
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Stability is essential to solve the pension problem

The new chancellor must ensure we have a period of stability for pension policymaking in order for everyone to acclimatise to a new era of personal responsibility in retirement, says 

There was a time when retirement seemed to take care of itself. It was normal to work, retire and then receive the state pension plus a company final salary pension, often a fairly generous figure, which also paid out to a spouse or partner on death.

That normality simply doesn’t exist for most people in 2016. There is much less certainty on what retirement looks like. The genesis of these experiences also starts much earlier. As final salary schemes fall out of favour, the UK is reaching a tipping point where savings in ‘defined contribution’ pension schemes become the most prevalent form of traditional retirement saving.

Saving for a ‘pension’ can mean a multitude of different things and the way your savings are organised can make a big difference to whether or not you are able to do what you planned in your later life – and also how your money is treated once you die.

George Osborne established a place for himself in the canon of personal savings policy through the introduction of ‘freedom and choice’ in pensions in 2015. This changed the rules dramatically, and gave pension income a level of public interest it had never seen before. Effectively the policymakers changed the rules, left the ring and took the ropes with them as we entered a new era of personal responsibility in retirement.

But what difference has that made? Have people changed their plans as a result, and what does 'normal' for retirement income look like now?

Old Mutual Wealth has just released. with YouGov, its third detailed survey of how people in the UK are planning their income needs in retirement. What is becoming clear is that 'normal' looks nothing like it did before. People have adjusted and are operating according to a new normal.

In the new normal, people are reliant on multiple sources of income in retirement, including actively using their home, as more people anticipate downsizing to provide some income. 24 per cent of future retirees have said they would consider releasing value from their home in one way or another.

In the new normal, working beyond your state pension age is no longer seen as drudgery. With increasing longevity, the appeal of keeping busy with work has grown. Almost one-third of future retirees are expecting work to provide some of their income in retirement, with just under half suggesting one of the reasons for doing so would be to maintain social interaction.

The new normal means less binary decision-making. Each choice an individual makes along the way becomes critical, and the answers themselves are less obvious. How do you best invest your savings? Where is the best place for a rainy day fund? How do you want to take income in the future and what happens to your assets when you die?

 An abundance of choices to provide answers to the above questions is good, but too much choice can paralyse decision-making. The new normal requires a plan earlier in life.

All the while, policymakers have continued to give people plenty of things to think about. In the past 12 months alone, the previous chancellor deliberated over whether – and how – to cut pension tax relief for higher earners. The ‘pensions-ISA’ system was mooted as the culmination of a project to hand savers complete control over their retirement savings, while also providing a welcome boost to Treasury coffers in the short term.

During her time as pensions minister, Baroness Altmann voiced her support for the current system of taxing pension income, rather than contributions, indicating a split between the DWP and HM Treasury on the matter. Baroness Altmann’s replacement at the DWP is Richard Harrington. It remains to be seen how much influence he will have and on what side of the camp he sits regarding taxing pensions.

Meanwhile, Philip Hammond has entered the Treasury while our new Prime Minister calls for greater unity. Following a tumultuous time for pensions, a change in tone towards greater unity and cross-department collaboration would be very welcome.

In order for everyone to acclimatise properly to the new normal, the new chancellor should commit to a return to a longer-term, strategic approach to pensions policymaking, enabling all parties, from regulators and providers to customers, to make decisions with confidence that the landscape will not continue to shift as fundamentally as it has in recent times.

Steven Levin is CEO of investment platforms at Old Mutual Wealth.

To view all of Old Mutual Wealth’s retirement reports, visit: www.oldmutualwealth.co.uk/ products-and-investments/ pensions/pensions2015/