Why should Pakistan trust us?

Distrust lies at the heart of the west’s relationship with Afghanistan and Pakistan -- but this is n

For western governments to lecture the likes of Pakistan about democracy and stability, as David Cameron did this morning, must seem a cruel joke to many in that country. Our part of the world has a long history of generously lending money to fuel violence, prop up undemocratic, often brutal regimes and exacerbate poverty.

Pakistan is a country with only 54 per cent literacy, and where 38 per cent of small children are underweight, yet it spends nearly $3bn a year servicing debts -- almost three times what the government spends on health.

Loans have flowed freely into Pakistan in order to keep favoured military governments in power, most recently that General Pervez Musharraf, when Pakistan's debt increased from $32bn to $49bn.

A recent $7.6bn International Monetary Fund loan, needed so that the country can keep paying off its old debts, is conditioned on reducing budget deficits, eliminating electricity subsidies and increasing indirect taxation. As usual, ordinary people will pay for the west's "largesse" that kept in power governments subservient to western interests.

Such injustice doesn't stop at Pakistan. Consider Indonesia, where 61 per cent of the population live on less than $2 a day. Like with India, as David Cameron reminded us this morning, fighting poverty in Indonesia will be central to the success of the Millennium Development Goals. But just like India, this seems a second-order priority compared to selling scores of Hawk fighter jets to the country.

Indonesia still owes the UK over $500m for Hawk jets and other military equipment sold to the brutal General Suharto. Suharto was guilty of crimes against humanity by any standard, killing up to a million political activists in his first year in office.

Today, Indonesia pays over $2.5m every hour to service its $150bn debts -- much run up by Suharto. Is it surprising if Indonesians think their lives matter less than the financial and strategic interests of the west?

Afghanistan has been rushed through the debt cancellation process to prevent any embarrassing examination of past lending, but has been forced to privatise its banks and will doubtless return to the same state of heavy indebtedness in years to come -- it serves the government, which needs the finances to hold on to power, and it serves the west, which needs the debts to keep control after the soldiers leave.

Control of these countries can be maintained through this same, deeply unjust economic system, through playing one faction off against another, through fighting when everything else fails to work. Democracy, stability and trust, however, require something far bolder, but not impossible.

It is possible to stop lending in such deeply unjust ways. It is possible to cancel debts based on loans that should never have been lent. It is possible to stop forcing countries to pay what they are unable to afford, or to force them to make their economies work in our interests simply because we can.

As repayments on deeply toxic debts continue to drain Muslim countries of their wealth, we need to realise that the debts, or reparations, if you prefer, that our governments owe the Muslim world are vast and rising. Trust will not be possible until they are paid.

The Jubilee Debt Campaign's "Fuelling Injustice: the Impact of Third World Debt on Muslim Countries" is available at jubileedebtcampaign.org.uk.

Getty Images
Show Hide image

Should London leave the UK?

Almost 60 per cent of Londoners voted to stay in the EU. Is it time for the city to say good by to Brexit Britain and go it alone?

Amid the shocked dismay of Brexit on Friday morning, there was some small, vindictive consolation to be had from the discomfort of Boris Johnson as he left his handsome home in EU-loving Islington to cat-calls from inflamed north London europhiles. They weren’t alone in their displeasure at the result. Soon, a petition calling for “Londependence” had gathered tens of thousands of names and Sadiq Khan, Johnson’s successor as London mayor, was being urged to declare the capital a separate city-state that would defiantly remain in the EU.

Well, he did have a mandate of a kind: almost 60 per cent of Londoners thought the UK would be Stronger In. It was the largest Remain margin in England – even larger than the hefty one of 14 per cent by which Khan defeated Tory eurosceptic Zac Goldsmith to become mayor in May – and not much smaller than Scotland’s. Khan’s response was to stress the importance of retaining access to the single market and to describe as “crucial” London having an input into the renegotiation of the UK’s relationship with the EU, alongside Scotland and Northern Ireland.

It’s possible to take a dim view of all this. Why should London have a special say in the terms on which the UK withdraws from the EU when it ended up on the wrong side of the people’s will? Calling for London to formally uncouple from the rest of the UK, even as a joke to cheer gloomy Inners up, might be seen as vindicating small-town Outer resentment of the metropolis and its smug elites. In any case, it isn’t going to happen. No, really. There will be no sovereign Greater London nation with its own passport, flag and wraparound border with Home Counties England any time soon.

Imagine the practicalities. Currency wouldn’t be a problem, as the newborn city-state would convert to the euro in a trice, but there would be immediate secessionist agitation in the five London boroughs of 32 that wanted Out: Cheam would assert its historic links with Surrey; stallholders in Romford market would raise the flag of Essex County Council. Then there is the Queen to think about. Plainly, Buckingham Palace could no longer be the HQ of a foreign head of state, but given the monarch’s age would it be fair to turf her out?

Step away from the fun-filled fantasy though, and see that Brexit has underlined just how dependent the UK is on London’s economic power and the case for that power to be protected and even enhanced. Greater London contains 13 per cent of the UK’s population, yet generates 23 per cent of its economic output. Much of the tax raised in London is spent on the rest of the country – 20 per cent by some calculations – largely because it contains more business and higher earners. The capital has long subsidised the rest the UK, just as the EU has funded attempts to regenerate its poorer regions.

Like it or not, foreign capital and foreign labour have been integral to the burgeoning of the “world city” from which even the most europhobic corners of the island nation benefit in terms of public spending. If Leaver mentality outside the capital was partly about resentment of “rich London”, with its bankers and big businesses – handy targets for Nigel Farage – and fuelled by a fear of an alien internationalism London might symbolise, then it may prove to have been sadly self-defeating.

Ensuring that London maintains the economic resilience it has shown since the mid-Nineties must now be a priority for national government, (once it decides to reappear). Pessimists predict a loss of jobs, disinvestment and a decrease in cultural energy. Some have mooted a special post-Brexit deal for the capital that might suit the interests of EU member states too – London’s economy is, after all, larger than that of Denmark, not to mention larger than that of Scotland, Wales and Northern Ireland combined – though what that might be and how that could happen remain obscure.

There is, though, no real barrier to greater devolution of powers to London other than the political will of central government. Allowing more decisions about how taxes raised in the capital are spent in the capital, both at mayoral and borough level, would strengthen the city in terms of managing its own growth, addressing its (often forgotten) poverty and enhancing the skills of its workforce.

Handing down control over the spending of property taxes, as set out in an influential 2013 report by the London Finance Commission set up by Mayor Johnson, would be a logical place to start. Mayor Khan’s manifesto pledged to campaign for strategic powers over further education and health service co-ordination, so that these can be better tailored to London’s needs. Since Brexit, he has underlined the value of London securing greater command of its own destiny.

This isn’t just a London thing, and neither should it be. Plans are already in place for other English cities and city regions to enjoy more autonomy under the auspices of directly elected “metro mayors”, notably for Greater Manchester and Liverpool and its environs. One of the lessons of Brexit for the UK is that many people have felt that decisions about their futures have been taken at too great a distance from them and with too little regard for what they want and how they feel.

That lesson holds for London too – 40 per cent is a large minority. Boris Johnson was an advocate of devolution to London when he was its mayor and secured some, thanks to the more progressive side of Tory localism. If he becomes prime minister, it would be good for London and for the country as a whole if he remembered that.  

Dave Hill writes the Guardian’s On London column. Find him on Twitter as @DaveHill.