Students at Eton College. Photograph: Getty Images
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Laurie Penny on The Eton Scholarship Question: this is how the British elite are trained to think

As one of the school’s scholarship exam questions shows, young boys are encouraged to think that humanity, compassion, even sense are secondary to winning. This is how we’ve ended up with politicians who will enact any policy, no matter the human cost, ju

How will you defend the murder of civilians when you’re Prime Minister? Pupils competing for a scholarship to Eton have been asked just that, in the following question from a 2011 exam which seemed to draw its inspiration from recent events in London:

The headmaster of Eton, responding to the furore on Twitter, claimed that this was an intellectual exercise, based on Machiavelli’s The Prince, and was taken out of context. It was nothing of the kind. In fact, questions like this - topics for debate designed to reward pupils for defending the morally indefensible in the name of maintaining "order" - crop up throughout the British elite education system, from prep schools to public schools like Eton to public speaking competitions right up to debating societies like the Oxford and Cambridge Unions, which are modelled on parliament for a reason. 

This is how you’re meant to argue when you’re eventually in charge. You’re trained for it, and part of that training is regularly being presented with morally indefensible positions to defend anyway or risk losing whatever competition you’re engaged with. I have seen perfectly decent young men get carried away defending genocide and torture because that’s the only way to win. Those who are unable to do so are taught that they have no business having political opinions. The people assumed to be the future elite are not rewarded for getting the answer which is most correct, most compassionate or humane or even sensible - they’re rewarded for smashing the opposition. And that’s how you get politicians who will argue anything they’re told to, enact any policy they're told to no matter how many how many people will get hurt, just so that their team can win.

Moreover, this isn’t just a standard homework question. It appears on a scholarship entrance exam, a test designed to be sat by young men seeking to join the ranks of the rich and powerful by virtue of merit and smarts rather than family money. Most fee-paying schools have such a system in place, especially the really elite ones which need to maintain a veneer of public conscience to bolster their tax-exempt charity status (yes, Eton is technically a charity) and boost exam results by scattering some middle-class nerds amongst the rich twits. I sat an entrance exam just like this thirteen years ago, because my parents wanted me to have a private education and they couldn’t afford the fees. Of the hundreds of exams I’ve sat since, none has had quite such a material effect on my future. 

Had a question like this appeared on that test, I know I’d have been torn. I wouldn’t be torn now, of course, I’d write ‘go fuck yourself’ across the paper in my sparkliest pens, but right now I’m an adult with a job, not a scared thirteen-year-old who wants to make her mum proud. The obvious answer- that any Prime Minister who attempts to justify the murder of protesters after the rule of law has disintegrated is not fit to rule and should step down immediately - is not one that appears on the test. And that’s the point of tests like these.

It’s not enough to be clever. What this test says is: if you want to be part of the ruling elite, you have to share our values, and one of those values is maintaining power at any cost, even if it involves defending the indefensible. Having a moral compass that doesn't spin wildly at the promise of power is an active impediment. The significant line in that extended question is ‘You are the Prime Minister.’ As if you’d be anything else. 

Eton trains rich young men for power. The all-boys school has produced nineteen Prime Ministers, including the current one. The Mayor of London and a significant chunk of the cabinet also attended the school. Nearly all of our most powerful politicians, in short, went to Eton, and were trained in its values. Values that include responding to a question about shooting protesters dead with clever rhetoric rather than a long, hard look at your own conscience, as well as reading Machiavelli as an instruction manual rather than a satire. Whoever set this exam question, one that obliges thirteen-year-old boys to defend the murder of protesters as Prime Minister, knew of the likelihood that one of those boys might well actually be Prime Minister one day, and be in the position to order protesters killed for real. How many marks do you get for that?

In most elite clubs and societies, there are questions you’re not allowed to ask. For a certain breed of flush-cheeked young British aristocrats, this is the question that will never, ever appear on an exam paper:

Is there any particular reason why we should be in charge?

Laurie Penny is a contributing editor to the New Statesman. She is the author of five books, most recently Unspeakable Things.

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Let's turn RBS into a bank for the public interest

A tarnished symbol of global finance could be remade as a network of local banks. 

The Royal Bank of Scotland has now been losing money for nine consecutive years. Today’s announcement of a further £7bn yearly loss at the publicly-owned bank is just the latest evidence that RBS is essentially unsellable. The difference this time is that the Government seems finally to have accepted that fact.

Up until now, the government had been reluctant to intervene in the running of the business, instead insisting that it will be sold back to the private sector when the time is right. But these losses come just a week after the government announced that it is abandoning plans to sell Williams & Glynn – an RBS subsidiary which has over 300 branches and £22bn of customer deposits.

After a series of expensive delays and a lack of buyer interest, the government now plans to retain Williams & Glynn within the RBS group and instead attempt to boost competition in the business lending market by granting smaller "challenger banks" access to RBS’s branch infrastructure. It also plans to provide funding to encourage small businesses to switch their accounts away from RBS.

As a major public asset, RBS should be used to help achieve wider objectives. Improving how the banking sector serves small businesses should be the top priority, and it is good to see the government start to move in this direction. But to make the most of RBS, they should be going much further.

The public stake in RBS gives us a unique opportunity to create new banking institutions that will genuinely put the interests of the UK’s small businesses first. The New Economics Foundation has proposed turning RBS into a network of local banks with a public interest mandate to serve their local area, lend to small businesses and provide universal access to banking services. If the government is serious about rebalancing the economy and meeting the needs of those who feel left behind, this is the path they should take with RBS.

Small and medium sized enterprises are the lifeblood of the UK economy, and they depend on banking services to fund investment and provide a safe place to store money. For centuries a healthy relationship between businesses and banks has been a cornerstone of UK prosperity.

However, in recent decades this relationship has broken down. Small businesses have repeatedly fallen victim to exploitative practice by the big banks, including the the mis-selling of loans and instances of deliberate asset stripping. Affected business owners have not only lost their livelihoods due to the stress of their treatment at the hands of these banks, but have also experienced family break-ups and deteriorating physical and mental health. Others have been made homeless or bankrupt.

Meanwhile, many businesses struggle to get access to the finance they need to grow and expand. Small firms have always had trouble accessing finance, but in recent decades this problem has intensified as the UK banking sector has come to be dominated by a handful of large, universal, shareholder-owned banks.

Without a focus on specific geographical areas or social objectives, these banks choose to lend to the most profitable activities, and lending to local businesses tends to be less profitable than other activities such as mortgage lending and lending to other financial institutions.

The result is that since the mid-1980s the share of lending going to non-financial businesses has been falling rapidly. Today, lending to small and medium sized businesses accounts for just 4 per cent of bank lending.

Of the relatively small amount of business lending that does occur in the UK, most is heavily concentrated in London and surrounding areas. The UK’s homogenous and highly concentrated banking sector is therefore hampering economic development, starving communities of investment and making regional imbalances worse.

The government’s plans to encourage business customers to switch away from RBS to another bank will not do much to solve this problem. With the market dominated by a small number of large shareholder-owned banks who all behave in similar ways (and who have been hit by repeated scandals), businesses do not have any real choice.

If the government were to go further and turn RBS into a network of local banks, it would be a vital first step in regenerating disenfranchised communities, rebalancing the UK’s economy and staving off any economic downturn that may be on the horizon. Evidence shows that geographically limited stakeholder banks direct a much greater proportion of their capital towards lending in the real economy. By only investing in their local area, these banks help create and retain wealth regionally rather than making existing geographic imbalances worce.

Big, deep challenges require big, deep solutions. It’s time for the government to make banking work for small businesses once again.

Laurie Macfarlane is an economist at the New Economics Foundation