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'Everything is in ruins'

The war with Russia last August has devastated Georgia: work and even food are now scarce. And Georg

A late autumn afternoon in Tbilisi. A group of middle-aged men, neatly dressed in yellowing shirts and fading suits, are playing backgammon under the trees in a square in the Armenian quarter. Several have well-groomed moustaches. The atmosphere is jovial: Alexander, a proud man in his late fifties, dominates the group with his loud laughter. Were it not for the derelict shells of buildings behind them, this could be any Mediterranean capital.

The war with Russia last August did not come near the capital, but this part of Tbilisi looks bombed out all the same. What happened? It's just decay, they say. Much worse than during the Soviet era. "Just look at the state of the buildings," says Alexander. "It was never like that before. No one has work." He used to run a factory that made mechanical parts, but is now one of the long-term unemployed. He is an educated man, proud of his flawless Russian (Georgian is his native language). In Soviet times he con sidered himself middle class. Now he feels poor and humiliated.

Meanwhile, his country has backed itself into a corner. On Tuesday the second round of international talks on security in the Caucasus opened in Geneva; discussions were described as "difficult" and the Tbilisi-Moscow relationship is as tense as ever. But a change of leader in Washington might make a difference: President Saa kashvili will soon have lost his chief ally in the west, George W Bush. A populist and opportunist, Saakashvili is dismissed by many Georgians as too hot-headed, and organised protests are planned against him.

After ousting Eduard Shevardnadze in November 2003, Mikhail Saakashvili, now 40, helped to attract millions in foreign funding. He was perceived as being a pro-western reformer and democrat. The Americans gave $22m during the war in August and promised another $1bn in September. That came on top of $1.6bn in outside investment in 2007, much of it from the US, a 40 per cent increase on the previous year. The foreigners are to blame for this whole mess, Alexander asserts, because they prop up dodgy regimes. "Our government is more corrupt than any other in the world. And the US and the UK support them in their corruption."

The American money has not benefited the likes of Alexander. To reach the capital's Armenian quarter from the international airport there is only one route: straight down President George W Bush Street, the only pothole-free highway in town, festooned with pictures of a waving Bush. But Alexander can't afford to travel abroad and doesn't expect to be able to find the money any time soon, so he has never driven along the route. Local officials have used the foreign money to buy up the best property and evict the poor, he says. His own house is at risk: it belonged to his great-great-grandmother and all his family were born there. Some people he knows survive by stealing, he says - a loaf here, some supermarket food there. He claims to have friends in prison who are desperate to stay because inside they don't go hungry.

“Our government is more corrupt than any other . . . and the US and the UK support them in their corruption”

Nana, 44, a biologist, is strolling through a nearby park opposite the parliament building with her four-year-old son. This is where Saa kashvili's supporters celebrated with fireworks when he forced Shevardnadze's resignation in 2003. "Things feel uncomfortable now," she says. "I'm not frightened at the moment but I feel as if we are not going in the right direction." She worries about her son's future. Eighty per cent of the intelligentsia have lost their jobs, she says, and no one needs scientists in the way they did in the Soviet era. "I am lucky - I still have a job. Most people I know are out of work. I don't think this problem with Russia will be resolved peacefully and I find that very upsetting. Saakashvili was wrong to use violence [against the breakaway provinces of South Ossetia and Abkhazia]. It was not the right way to respond. I feel as if we are not being told the facts. This situation is benefiting someone, but you can't quite work out who. I do agree that we should fight to keep these territories because they are ours and not Russia's. But it should be a diplomatic fight, not a military one. Why kill people over something like this?"

The one hope, she says, is the popular female politician Nino Burjanadze, a 44-year-old pro-democracy campaigner who was briefly acting president before Saakashvili took office. Burjanadze has already aligned herself with the protests against Saakashvili's actions this summer and is calling for elections. The word is that "something" could happen as soon as the end of this month. "No one knows what, though," Nana says, stroking her son's head. The more she talks, the more upset she becomes. "Sorry - I am not articulating myself very well. It's because I'm afraid."

Down the road in an underpass leading to the main street, Rustaveli, four menacing-looking youths are hunched together around a cap thrown on the floor. Suddenly they open their mouths to sing, and a pure Georgian chant reverberates around the walls. Next to them a woman in a housecoat and slippers is selling curtains. Some old men are having a picnic of tomatoes and bread on an upturned cardboard box. Out on the street, stray cats and dogs are everywhere, picking their way through buildings abandoned halfway through reconstruction. You encounter well-dressed, middle-aged people who look as if they are sitting down waiting for someone or something. It is only when you see the outstretched, cupped hand and the expression of shame on each face that you realise they are begging. At a set of traffic lights one man is trying to sell balloons, weaving in and out of six lanes of traffic.

Before the war with Russia in August, Georgia’s economy was expanding rapidly: its reported growth rate for 2007 was 12.4 per cent, according to the New York-based analysts EurasiaNet. There are signs of stability: BP, PricewaterhouseCoopers, Pepsi, Coca-Cola and the legal firms Baker & McKenzie and DLA Piper all have offices here. There is a vigorous cafe culture: a chain of literary cafes has opened in recent months. For young people in their late teens and twenties, especially those who speak several languages (as many do), the outlook is not bad; new Marriott and Hyatt hotels have opened and the service industry is growing. Anyone who can get a job with a western company can hope for a salary of up to $2,000 a month. But this is an option for only a privileged minority. The salaries of state teachers and doctors are a tenth of this. And men like Alexander are completely washed up.

In Tbilisi's most affluent quarter, Shardeni, the mood is more combative. Besarion Darjani, an affable gallery owner in his fifties, says he supports the current regime: without American aid Georgia would be even worse off.

"It's all about money, the oil pipeline and Russia's pretensions to be an empire," he says. "Putin wants someone in some godforsaken Siberian town in the middle of nowhere to turn on his TV news, see the bombing, beat his chest and say, 'Hey, that's our territory!' Saakashvili was obliged to do what he did because he had to defend our territory against the Russians. He was provoked."

His gallery sells the work of 50 local artists, many of whom have up to ten dependants. It is largely foreigners who buy the artwork, he adds, so he is happy to see them and their money. In a courtyard near the gallery, a group of Americans are drinking a bottle of Georgian red wine. Last month the Georgian Chamber of Commerce welcomed a group of a dozen British tour ope rators for a week-long trip. But, with the crisis unresolved - and likely to flare up again at any moment - fewer foreigners have been coming.

If the situation with Russia is not resolved quickly, says Darjani, his business could dissolve: "Russia spits on the world and on any- one who gets in the way of their great empire. The current government has ruined years of friendship between Georgia and Russia. I don't blame ordinary Russians, though. I have a lot of friends living in Moscow and Leningrad. But the people of South Ossetia and Abkhazia are Georgians. Their nationalities have been artificially created by the Russians - they give them passports and money and promise them autonomy. So then of course they want to be Russian. But what about the fact that it is our territory and there are Georgians living there?"

Many of these South Ossetians and Abkha zians have sought refuge in Tbilisi, living in hospitals and schools. Their numbers are estimated at anything between 20,000 and 60,000. (According to the UN, another 20,000 have fled into Russia.) The capital's infrastructure can barely support them.

The authorities host regular entertainment and when several hundred Georgians turn up for a charity performance at the theatre on a Saturday night, they look as if they almost fit in but somehow don't. These are modern refugees: the children are impeccably dressed and taking pictures of each other on their mobile phones.

Some of the other theatregoers are local people. I meet a group of young women outside on the balcony. Dressed in satin blouses and leather trousers, they are not worried about Georgia's future. "You couldn't really notice any difference in Tbilisi in August," one of them says. "It is worrying, of course, but I think that whatever happens the EU and Nato will bail us out, especially if it gets really bad."

But those of the older generation know how conflicts have been resolved in the past. Many of the actors from the theatre died in the last war in the early 1990s in Abkhazia. “These were boys who did not even know how to hold a gun,” says the director Robert Sturua. “I told them, ‘If you go to war, don’t bother coming back, because I don’t want murderers in my theatre.’”

The theatre has a small government subsidy but survives largely through donations from an anonymous businessman, who pays the directors' and actors' salaries. They cannot hope for too much from the state, says Sturua. "We have a government that is making a lot of mistakes. That's normal, though. That's freedom. It's like Jefferson said, 'Freedom is a tree you must water with blood.' It sounds cruel but it's the truth. Georgia has suffered more than any other former Soviet republic. There is a generation of people who have completely lost hope."

Worst of all, the war in the summer eclipsed some of Georgia's greatest cultural achievements this year, he says. The State Ballet of Georgia was acclaimed at this year's Edinburgh Festival, where the much-feted prima ballerina Nina Ananiashvili performed Giselle. Another Georgian dancer, David Makhateli, is a rising star with the Royal Ballet in London.

Sturua argues that life has returned to something approaching normality since the events of August: there is no military presence here at all and already the tourists are returning. Cultural and historical tourism is something many see as Georgia's potential salvation. Sturua is an optimist: he sees no reason to think Georgia won't thrive once the territorial disputes with Russia are resolved.

But this sort of talk will not pacify the likes of Alexander. He just wants a regime change, and doesn't care who becomes president so long as he or she stands on an anti-corruption ticket. "There is no such thing as normal life here," he says. "Everything is in ruins. Even if you work you don't always get paid." But how do people survive, then? "A very good question," he laughs. "Why don't you ask our government how people like me get by? They don't care."

This article first appeared in the 24 November 2008 issue of the New Statesman, How to get us out of this mess

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Paul Mason: How the left should respond to Brexit

It's up to the labour movement to rescue the elite from the self-inflected wound of Brexit.

For the first time in a generation there is a tangible split between the Tory leadership and the business elite. Forget the 41 per cent poll rating, forget Theresa May’s claim to have moved towards “the centre”; the most important thing to emerge since the Tory conference is a deep revulsion, among wide sections of normally Conservative voters, at the xenophobia, nationalism and economic recklessness on display.

Rhetorically, May has achieved a lot. She quashed any possibility of a soft Brexit strategy. She ended 30 years of openness to migration. She scrapped the Tories’ commitment to balanced books by 2020 – though she neglected to replace this keystone policy with anything else. And she pledged to stop constitutional scrutiny over the Brexit process from Holyrood, Westminster or the courts.

Yet in reality she achieved nothing. May’s government is not in control of the crucial process that will define its fate – the Brexit negotiations. And on Scotland, she has triggered a sequence of events that could lead to the end of the UK within the next five years.

In the light of this, the left has to be refocused around the facts that have emerged since the referendum on 23 June. Britain will leave the EU – but it faces a choice between May’s hubristic nonsense and a strategy to salvage 30 years of engagement with the biggest market in the world. Scotland will hold its second referendum. Labour will be led through all this by a man who, for the first time in the party’s history, cannot be relied on to do the elite’s bidding.

Brexit, on its own, need not have caused a great shift in British politics. It is the new, visceral split between Tory xenophobia and the implicitly liberal and globalist culture in most boardrooms that makes this a turning point. It is a challenge for the left as big as the ones Labour faced in 1931, when the gold standard collapsed; or in 1940, when the reality of total war dawned. It represents a big opportunity – but only if we jolt our brains out of the old patterns, think beyond party allegiances, and react fast.

Let’s start with the facts around which May, Philip Hammond and Amber Rudd constructed their rhetorical body swerve at the Tory conference. Britain is £1.7trn in debt. Its budget deficit cannot be eradicated by 2020 because, even on the steroids of quantitative easing, growth is low, wages are stagnant and its trade situation deeply negative. Austerity, in short, did not work.

With sterling weakened, by next year we’ll begin to feel the pressure of imported inflation on real wages, re-creating the economic pain of 2011-12. On top of that, by attempting a “hard Brexit”, May has created damaging uncertainty for investment that no degree of short-term positivity can mitigate. Even if the range of outcomes only widens, investment will get delayed – and with May’s commitment to hard Brexit the range of outcomes will get significantly worse: 7.5 per cent lopped off GDP, according to a leaked Treasury assessment.

Civil servants believe Britain’s negotiating position is so weak that it will have to leverage its intelligence-providing services to Europe and concede “free movement of high-skilled workers”, just to persuade the French and the Germans to cut any kind of decent bilateral deal. Yet in the two years of brinkmanship that begin when Article 50 is triggered, the EU27 will have no reason whatsoever to concede favourable terms for bilateral trade. By adopting hard Brexit and hard xenophobia, Theresa May has scheduled a 24-month slow-motion car crash.

To orient the Labour Party, trade unions and the wider progressive movement, we need first to understand the scale of the break from normality. Labour already faced deep problems. First, without Scotland it cannot govern; yet many of its members in Scotland are so dislocated from the progressive Scottish national movement that the party is bereft of answers.

Next, the old relationship between the urban salariat and the ex-industrial working class has inverted. With a vastly expanded membership, Labour is the de facto party of the urban salariat. Its heartland is Remainia – the cities that voted to stay in Europe. Its electoral battlegrounds are now places such as Bury, Nuneaton, Corby and Portsmouth, where the “centre” (as measured by the Lib Dem vote) has collapsed, to be replaced by thousands of Green voters and thousands more voting Ukip.

This was the known problem on the eve of Brexit, though layers of Labour MPs and councillors refused to understand it or respond to it. The solution to it was, even at that point, obvious: Labour can only attract back a million Green voters and hundreds of thousands of Ukip voters in winnable marginals with a combination of social liberalism and economic radicalism.

The alternative, as outlined in the Blue Labour project of Maurice Glasman and Jon Cruddas, was an overt return to social conservatism. That cannot work, because it might win back some ex-Labour Ukip voters but could not inspire Labour’s new urban core to go on the doorstep and fight for it. On the contrary, it could easily inspire many of them to tear up their membership cards.

A new strategy – to combine social liberalism, multiculturalism and environmentalism with left-wing economic policies aimed at reviving the “communities left behind” – was, for me, always the heart of Corbynism. Jeremy Corbyn himself, whatever his personal strengths and weaknesses, was a placeholder for a political strategy.

Brexit, the attempted Labour coup and the Tory swing to hard Brexit have changed things all over again. And Labour’s leadership needs to move fast into the political space that has opened up. The starting point is to understand May’s administration as a regime of crisis. It is held together by rhetoric and a vacuum of press scrutiny, exacerbated by Labour’s civil war and the SNP’s perennial dithering over strategy to achieve Scottish independence. The crisis consists of the perils of hard Brexit combined with a tangible split between the old party of capital and capital itself. The elite – the bankers, senior managers, the super-rich and the ­upper middle class – do not want Brexit. Nor does a significant proportion of Middle Britain’s managerial and investing classes.




All this presents Labour with a series of achievable goals – as an opposition in Westminster, in London, as the likely winner in many of the forthcoming mayoral battles, and at Holyrood. The first aim should be: not just oppose hard Brexit, but prevent it. This entails the Labour front bench committing to an attempt to remain inside the European Economic Area.

The wariness – shared by some on the Corbyn side, as well as the Labour right – is born of the assumption that if you commit to the single market, you must accept free movement of labour. The party’s new spokesman on Brexit, Keir Starmer, expressed perfectly what is wrong with this approach: first it’s a negotiation, not a finished relationship; second, you start from the economics, not the migration issue.

Leaving the single market will be a macroeconomic disaster, compounded by a social catastrophe, in which all the European protections – of citizens’ rights, labour rights, consumer and environmental standards – will get ripped up. That’s why the Labour front bench must commit to staying inside the single market, while seeking a deal on free movement that gives Britain time and space to restructure its labour market.

John McDonnell’s “red lines”, produced hurriedly in the days after Brexit, embody this principle – but not explicitly. McDonnell has said Labour would vote against any Brexit deal that did not involve some form of single-market access, and preserve the City’s passporting arrangement, where banks are authorised to trade across an entire area without having to be incorporated separately in each country. Freedom of movement is not included in the red lines.

May, meanwhile, insists there will be no parliamentary scrutiny of the negotiating stance, or of the outcome. This position cannot stand, and overthrowing it provides a big, early target for Labour and the other opposition parties. They should use their constitutional influence – not only in Westminster but at Holyrood, Cardiff and the mayor-run cities, to bust open the Conservatives’ secrecy operation.

By declaring – formally, in a written pact – that they will refuse to ratify a Brexit deal based on World Trade Organisation tariffs, the progressive parties can destroy May’s negotiating position in Brussels overnight. Let the Conservative press accuse us of being “citizens of the world”, undermining the national interest. They will dig their own political grave even faster.

In parallel, Labour needs to lead – intellectually, morally and practically – the fight for a coherent, pro-globalist form of Brexit. In order for this to embody the spirit of the referendum, it would have to include some repatriation of sovereignty, as well as a significant, temporary retreat from freedom of movement. That means – and my colleagues on the left need to accept this – that the British people, in effect, will have changed Labour’s position on immigration from below, by plebiscite.

In response, Labour needs to design a proposal that permits and encourages high beneficial migration, discourages and mitigates the impact of low-wage migration and – forgotten in the rush to “tinder box” rhetoric by the Blairites – puts refugees at the front of the queue, not the back. At its heart must be the assurance, already given to three million EU-born workers, that they will not be used as any kind of bargaining chip and their position here is inviolable.

Finally Labour needs to get real about Scotland. The recent loss of the council by-election in Garscadden, with a 20 per cent swing to the SNP, signals that the party risks losing Glasgow City Council next year.

It is a problem beyond Corbyn’s control: his key supporters inside Scottish Labour are long-standing and principled left-wing opponents of nationalism. Which would be fine if tens of thousands of left-wing social democrats were not enthused by a new, radical cultural narrative of national identity. Corbyn’s natural allies – the thousands of leftists who took part in the Radical Independence Campaign – are trapped outside the party, sitting inside the Scottish Greens, Rise or the left of the SNP.

The interim solution is for Scottish Labour to adopt the position argued by its deputy leader, Alex Rowley: embrace “home rule” – a rejigged devo-max proposal – and support a second independence referendum. Then throw open the doors to radical left-wing supporters of independence. If, for that to happen, there has to be a change of leadership (replacing Kezia Dugdale), then it’s better to do it before losing your last bastion in local government.

The speed with which Labour’s challenge has evolved is a signal that this is no ordinary situation. To understand how dangerous it would be to cling to the old logic, you have only to extrapolate the current polls into an electoral ground war plan. Sticking to the old rules, Labour HQ should – right now – be planning a defensive campaign to avoid losing 60 seats to May. Instead, it can and must lay a plan to promote her administration’s chaotic demise. It should have the ambition to govern – either on its own, or with the support of the SNP at Westminster.

To achieve this, it must confront the ultimate demon: Labour must show willing to make an alliance with the globalist section of the elite. Tony Blair’s equivocation about a return to politics, the constant noise about a new centrist party, and signs of a Lib Dem revival in local by-elections are all straws in the wind. If significant sections of the middle class decide they cannot live with Tory xenophobia, the liberal centre will revive.

The best thing for Labour to do now is to claim as much of the high ground before that. It must become the party of progressive Brexit. The worst thing would be to start worrying about “losing the traditional working class”.

The “traditional working class” knows all too well how virulent Ukip xenophobia is: Labour and trade union members spend hours at the pub and in the workplace and on the doorstep arguing against it.

All over Britain, the labour movement is a line, drawn through working-class communities, which says that migrants are not to blame for poor housing, education, low pay and dislocated communities. For the first time in a generation Labour has a leader prepared to say who is to blame: the neoliberal elite and their addiction to privatisation, austerity and low wages.

It was the elite’s insouciance over the negative impacts of EU migration on the lowest-skilled, together with their determination to suppress class politics inside Labour, that helped get us into this mess. An alliance with some of them, to achieve soft Brexit, democratic scrutiny and to defeat xenophobic solutions, must be conditional.

We, the labour movement, will dig the British ruling class out of a self-made hole, just as we did in May 1940. The price is: no return to the philosophy of poverty and inequality; a strategic new deal, one that puts state ownership, redistribution and social justice at the heart of post-Brexit consensus.

That is the way forward. If Labour politicians can bring themselves to explain it clearly, cajole the party apparatus out of its epic sulk and make a brave new offer to Scotland – it can work. But time is important. We are up against a corrosive nationalist bigotry that now echoes direct from the front page of the Daily Mail to Downing Street. Every day it goes unchallenged it will seep deeper into Britain’s political pores.

Paul Mason is the author of “PostCapitalism: a Guide to Our Future” (Penguin)

This article first appeared in the 13 October 2016 issue of the New Statesman, England’s revenge