Saudi embarrassment

The killing or the homosexuality – which seems worse to the folks back home?

The news that a Saudi prince is on trial in London for killing an aide who was reputedly also his gay lover will be enormously embarrassing to the government back in Riyadh. Saudis dislike bad publicity intensely, and especially when it involves a case as horrific as an alleged princely murder — as we in Britain should know well. In 1980, the Saudi government expelled our ambassador and banned Concorde from its airspace after ITV screened Death of a Princess, about a young member of the royal family who was executed for the "crime" of conducting a secret relationship.

In the opinion of David Gardner, author of Last Chance: the Middle East in the Balance (and who wrote a fascinating essay on Saudi Arabia for the NS last year): "This prince has become a very hot potato for the Saudi ruling family. Though a minor princeling, he is the grandson of a king who has tried to project an image of austere probity, to limit the power of the clerical establishment and curb the excesses of the more wayward and corrupt royals.

"Then along comes this . . . which presses just about every Wahhabi button in its transgression: murder and homosexuality against a backdrop of phenomenal quantities of alcohol and drugs."

Shamefully, however, just as humiliating for the royal family will be the revelations that Prince Saud bin Abdulaziz bin Nasir al-Saud, who is King Abdullah's grandson, is homosexual. The details of the case make this plain — something called the Spartacus International Gay Guide was found in his room, and two male escort agencies testified he had used their services since checking in to the hotel.

It is not as though homosexuality is unknown in Saudi Arabia. In a daring piece for the NS in 2007, Harry Nicolaides wrote of one attempted pick-up he experienced. (So daring was the piece, in fact, that at the time I couldn't believe his lack of regard for his own safety. My worries proved well founded, as Harry's bravery, or recklessness, was later to land him in jail in Thailand for violating lèse majesté laws.) And Robert Lacey devoted a section of his recent book Inside the Kingdom to an account of the prevalence of lesbianism in Saudi — a chapter to which some reviewers paid rather overenthusiastic attention.

But officially this "vice" is not tolerated, and sodomy is punishable by death. This is in line with a society that likes to insist on its version of the truth and airbrush awkward episodes from the official record. If you look up the country's second ruler, King Saud, for instance, on the kingdom's official government website you will not be told that he was an obese, lazy, spendthrift playboy who proved so incompetent that the almost unthinkable step of deposing him was taken in order to make way for his brother Faisal. No, you merely find a bland paragraph listing his "achievements" and dates on the throne.

The Saudi government, however, cannot control coverage of Prince Saud's trial. Surprise, surprise, if you try to look it up on the website of Arab News, a Saudi-owned English-language newspaper, the closest you get is a four-day-old story about Russia commending a different Prince Saud (the king's nephew) as a diplomat. But as this fascinating article in the Atlantic shows, internet restrictions are easily bypassed by the kingdom's citizens, not least by those logging on to gay dating sites.

Prince Saud's story will soon be known. Perhaps some of those reading it will shudder, and give thanks that nothing similar happened to them — after all, they may have met him online already . . .

Sholto Byrnes is a Contributing Editor to the New Statesman
Photo: Getty
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The Future of the Left: A new start requires a new economy

Creating a "sharing economy" can get the left out of its post-crunch malaise, says Stewart Lansley.

Despite the opportunity created by the 2008 crisis, British social democracy is today largely directionless. Post-2010 governments have filled this political void by imposing policies – from austerity to a shrinking state - that have been as economically damaging as they have been socially divisive.

Excessive freedom for markets has brought a society ever more divided between super-affluence and impoverishment, but also an increasingly fragile economy, and too often, as in housing, complete dysfunction.   Productivity is stagnating, undermined by a model of capitalism that can make big money for its owners and managers without the wealth creation essential for future economic health. The lessons of the meltdown have too often been ignored, with the balance of power – economic and political – even more entrenched in favour of a small, unaccountable and self-serving financial elite.

In response, the left should be building an alliance for a new political economy, with new goals and instruments that provide an alternative to austerity, that tackle the root causes of ever-growing inequality and poverty and strengthen a weakening productive base. Central to this strategy should be the idea of a “sharing economy”, one that disperses capital ownership, power and wealth, and ensures that the fruits of growth are more equally divided. This is not just a matter of fairness, it is an economic imperative. The evidence is clear: allowing the fruits of growth to be colonised by the few has weakened growth and made the economy much more prone to crisis.

To deliver a new sharing political economy, major shifts in direction are needed. First, with measures that tackle, directly, the over-dominance of private capital. This could best be achieved by the creation of one or more social wealth funds, collectively held financial funds, created from the pooling of existing resources and fully owned by the public. Such funds are a potentially powerful new tool in the progressive policy armoury and would ensure that a higher proportion of the national wealth is held in common and used for public benefit and not for the interests of the few.

Britain’s first social wealth fund should be created by pooling all publicly owned assets,  including land and property , estimated to be worth some £1.2 trillion, into a single ring-fenced fund to form a giant pool of commonly held wealth. This move - offering a compromise between nationalisation and privatization - would bring an end to today’s politically expedient sell-off of public assets, preserve what remains of the family silver and ensure that the revenue from the better management of such assets is used to boost essential economic and social investment.

A new book, A Sharing Economy, shows how such funds could reduce inequality, tackle austerity and, by strengthening the public asset base, rebalance the public finances.

Secondly, we need a new fail safe system of social security with a guaranteed income floor in an age of deepening economic and job insecurity. A universal basic income, a guaranteed weekly, unconditional income for all as a right of citizenship, would replace much of the existing and increasingly means-tested, punitive and authoritarian model of income support. . By restoring universality as a core principle, such a scheme would offer much greater security in what is set to become an increasingly fragile labour market. A basic income, buttressed by a social wealth fund, would be key instruments for ensuring that the potential productivity gains from the gathering automation revolution, with machines displacing jobs, are shared by all.  

Thirdly, a new political economy needs a radical shift in wider economic management. The mix of monetary expansion and fiscal contraction has proved a blunderbuss strategy that has missed its target while benefitting the rich and affluent at the expense of the poor. By failing to tackle the central problem  – a gaping deficit of demand (one inflamed by the long wage squeeze and sliding investment)  - the strategy has slowed recovery.  The mass printing of money (quantitative easing) may have helped prevent a second great depression, but has also  created new and unsustainable asset bubbles, while austerity has added to the drag on the economy. Meanwhile, record low interest rates have failed to boost private investment and productivity, but by hiking house prices, have handed a great bonanza to home owners at the expense of renters.

Building economic resilience will require a more central role for the state in boosting and steering investment programmes, in part through the creation of a state investment bank (which could be partially financed from the proposed new social wealth fund) aimed at steering more resources into the wealth creating activities private capital has failed to fund.

With too much private credit used for financial speculation and property, and too little to small companies and infrastructure, government needs to play a much more direct role in creating credit, while restricting the almost total freedom currently handed to private banks.  Tackling the next downturn, widely predicted to land within the next 2-3 years, will need a very different approach, including a more active fiscal policy. To ensure a speedier recovery from recessions, future rounds of quantitative easing should, within clear constraints, boost the economy directly by financing public investment programmes and cash handouts (‘helicopter money’).  Such a police mix – on investment, credit and stimulus - would be more effective in boosting the real economic base, and would be much less pro-rich and anti-poor in its consequences.

These core changes would greatly reform the existing Anglo-Saxon model of capitalism and provide the foundations for building support for a new direction for progressive politics. They would pioneer new tools for building a fairer, more dynamic and more stable economy. They could draw on experience elsewhere such as the Alaskan annual citizen’s dividend (financed by a sovereign wealth fund) and the pilot basic income schemes launching in the Netherlands, Finland and France.  Even mainstream economists, including Adair Turner, former chairman of the Financial Services Authority, are now talking up the principle of ‘helicopter money’. For these reasons, parts of the package are likely to prove publicly popular and command support across the political divide. Together they would contribute to a more stable economy, less inequality, and a more even balance of power and opportunity.

 

Stewart Lansley is the author of A Sharing Economy, published in March by Policy Press and of Breadline Britain, The Rise of Mass Impoverishment (with Joanna Mack).