Defending the indefensible

Israeli liberals are increasingly gloomy so British 'progressives' are being mobilised to fight the

Israeli bulldozers demolish a hotel in East Jerusalem in January
Source: Getty Images

Away from the comatose 'peace process' and focus on Iran, a wave of anti-democratic and nationalistic legislation in Israel's Knesset shows no sign of slowing down.

For Israel's liberals, these are worrying times. The publisher and owner of Ha'aretz newspaper this week issued a warning about apartheid and democracy, while his colleagues have launched a special project on Israel's "eroding freedoms" called "Black Flag Over Israel's Democracy".

The rhetoric of anger and fear about these "threats to democracy" reflects a definite shift in Israel. It is crucial to note that Israel has never been 'democratic' for Palestinians, who are excluded from their homeland entirely, live under military rule in the West Bank and Gaza or are second-class citizens in the pre-1967 borders.

What is happening now is that the democratic rights enjoyed by Jewish Israelis are being threatened. Yet as Israeli politics and policies lurch ever further to the right, and the country's liberals feel increasingly gloomy and under attack, in the UK it is self-identified 'progressives' who are increasingly being mobilised to fight Israel's corner.

The Reut Institute is an influential Israeli think tank that has done considerable work focused on countering the growing Palestine solidarity movement (what it calls the 'delegitimization' of Israel). Their proposals have been influential; for example, Reut is front and centre of this weekend's Israel lobby conference in Manchester.

A key emphasis of their recommendations for Israel lobbyists is to focus "on engaging the hearts and minds of liberal progressive elites", a strategy elaborated on in a substantial London-specific report. In the context of the UK, Reut suggest that "liberal and progressive left" voices are the ones "most effective" in shielding Israel from human rights campaigners, and the think tank urges Israel's defenders to "substantively engage liberal and progressive circles".

It is no surprise then that Labour Friends of Israel (LFI) has 'reinvented' itself in order to "develop the 'progressive case' for Israel", while the chief executive of Israel lobby group BICOM - herself a former member of LFI - has committed the organisation to "driving the campaign for the Left to support [Israel] as a Jewish state".

These tactics were transparently on display at a recent 'Question Time'-style debate I participated in at the University of Birmingham, where the two guest speakers on the 'Israel side' - Alan Johnson of BICOM and David Hirsh - both took pains to repeatedly emphasise that they were coming from 'the Left'.

On campuses in general, this push is also reflected in the efforts by the Union of Jewish Students (UJS) to rebrand their Israel lobbying in terms of 'liberation' and 'progressive' values, since - in their own words - "hasbara is not working". UJS's language echoes that of Reut, and the Campaign Director explicitly referenced the think tank when explaining the strategic shift. In summer 2010, Reut hosted a 20-strong delegation from UJS to discuss Israel lobbying on campus.

On the ground in Palestine/Israel, the daily apartheid continues. Just days ago, Israeli soldiers demolished a number of Palestinian homes and structures in the West Bank, a routine, brutal occurrence. Also this week, Minority Rights Group International published a report that describes how, on both sides of the Green Line, Bedouin have been "subject to a series of human rights violations, including forced displacement". Another snapshot: it was reported this week that on a visit to the UK, the head of the World Zionist Organisation - a body with an official relationship with the Israeli state - urged more Jewish immigration to counter 'Arab growth'.

Rather than resist or challenge this, Israel's so-called liberal friends in the UK are increasingly at the forefront of efforts to defend the indefensible, mobilised to help perpetuate a status quo that not only excludes and discriminates against Palestinians, but is now shrinking the space for dissent for Jewish Israelis too.

Ben White is an activist and writer. His latest book is "Palestinians in Israel: Segregation, Discrimination and Democracy"

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The 2017 Budget will force Philip Hammond to confront the Brexit effect

Rising prices and lost markets are hard to ignore. 

With the Brexit process, Donald Trump and parliamentary by-election aftermath dominating the headlines, you’d be forgiven for missing the speculation we’d normally expect ahead of a Budget next week. Philip Hammond’s demeanour suggests it will be a very low-key affair, living up to his billing as the government’s chief accounting officer. Yet we desperately need a thorough analysis of this government’s economic strategy – and some focused work from those whose job it is to supposedly keep track of government policy.

It seems to me there are four key dynamics the Budget must address:

1. British spending power

The spending power of British consumers is about to be squeezed further. Consumers have propped up the economy since 2015, but higher taxes, suppressed earnings and price inflation are all likely to weigh heavily on this driver for growth from now on. Relatively higher commodity prices and the sterling effect is starting to filter into the high street – which means that the pound in the pocket doesn’t go as far as it used to. The dwindling level of household savings is a casualty of this situation. Real incomes are softer, with poorer returns on assets, and households are substituting with loans and overdrafts. The switch away from consumer-driven growth feels well and truly underway. How will the Chancellor counteract to this?

2. Lagging productivity

Productivity remains a stubborn challenge that government policy is failing to address. Since the 2008 financial crisis, the UK’s productivity performance has lagged Germany, France and the USA, whose employees now produce in an average four days as much as British workers take to produce in five. Perhaps years of uncertainty have seen companies choose to sit on cash rather than invest in new production process technology. Perhaps the dominance of services in our economy, a sector notorious hard in which to drive new efficiencies, explains the productivity lag. But ministers have singularly failed to assess and prioritise investment in those aspects of public services which can boost productivity. These could include easing congestion and aiding commuters; boosting mobile connectivity; targeting high skills; blasting away administrative bureaucracy; helping workers back to work if they’re ill.

3. Lost markets

The Prime Minister’s decision to give up trying to salvage single market membership means we enter the "Great Unknown" trade era unsure how long (if any) our transition will be. We must also remain uncertain whether new Free Trade Agreements (FTAs) are going to go anyway to make up for those lost markets.

New FTAs may get rid of tariffs. But historically they’ve never been much good at knocking down the other barriers for services exports – which explains why the analysis by the National Institute for Economic and Social Research recently projected a 61 per cent fall in services trade with the EU. Brexit will radically transform the likely composition of economic growth in the medium term. It’s true that in the near term, sterling depreciation is likely to bring trade back into balance as exports enjoy an adrenal currency competitive stimulus. But over the medium term, "balance" is likely to come not from new export market volume, but from a withering away of consumer spending power to buy imported goods. Beyond that, the structural imbalance will probably set in again.

4. Empty public wallets

There is a looming disaster facing Britain’s public finances. It’s bad enough that the financial crisis is now pushing the level of public sector debt beyond 90 per cent of our gross domestic product (GDP).  But a quick glance at the Office for Budget Responsibility’s January Fiscal Sustainability Report is enough to make your jaw drop. The debt mountain is projected to grow for the next 50 years. All else being equal, we could end up with an incredible 234 per cent of debt/GDP by 2066 – chiefly because of the ageing population and rising healthcare costs. This isn’t a viable or serviceable level of debt and we shouldn’t take any comfort from the fact that many other economies (Japan, USA) are facing a similar fate. The interest payable on that debt mountain would severely crowd out resources for vital public services. So while some many dream of splashing public spending around on nationalising this or that, of a "universal basic income" or social security giveaways, the cold truth is that we are going to be forced to make more hard decisions on spending now, find new revenues if we want to maintain service standards, and prioritise growth-inducing policies wherever possible.

We do need to foster a new economic model that promotes social mobility, environmental and fiscal sustainability, with long-termism at its heart. But we should be wary of those on the fringes of politics pretending they have either a magic money tree, or a have-cake-and-eat-it trading model once we leap into the tariff-infested waters of WTO rules.

We shouldn’t have to smash up a common sense, balanced approach in order for our country to succeed. A credible, centre-left economic model should combine sound stewardship of taxpayer resources with a fairness agenda that ensures the wealthiest contribute most and the polluter pays. A realistic stimulus should be prioritised in productivity-oriented infrastructure investment. And Britain should reach out and gather new trading alliances in Europe and beyond as a matter of urgency.

In short, the March Budget ought to provide an economic strategy for the long-term. Instead it feels like it will be a staging-post Budget from a distracted Government, going through the motions with an accountancy exercise to get through the 12 months ahead.

Chris Leslie MP was Shadow Chancellor in 2015 and chairs Labour’s PLP Treasury Committee

 

 

 

Chris Leslie is chair of Labour’s backbench Treasury Committee and was shadow Chancellor in 2015.