How Cameron failed developing countries at the G8

From the beginning, the Prime Minister repeatedly failed to show the leadership on tax avoidance and transparency this summit needed.

The G8 meeting was heralded as a unique opportunity to address some of the structural causes of poverty and hunger. It was a chance to both put our own house in order and focus on making a difference to the lives of those in the developing world. Progress was made towards tackling hunger and malnutrition, with substantive funding commitments made by the UK and EU. We also saw a welcome commitment to supporting the UN’s humanitarian appeal for the horrendous crisis in Syria,  which remains staggeringly underfunded. 

David Cameron rightly made tackling tax avoidance and improving transparency a priority. The flawed system of global taxation has a profound impact on not only our revenues but also on the poor in developing countries. The Africa Progress Panel revealed just this week that African countries lose $50bn a year to illicit tax flows. But despite the Prime Minister’s rhetoric, his efforts fell desperately short in achieving the fundamental changes which are necessary.

It was imperative from the beginning that any G8 agreement should not "lock out" developing countries. However, it is unclear how developing countries will benefit from announcements on sharing tax information and whether they will be involved from the start in the Prime Minister’s new deal. This runs the risk of creating a "two-tier" system which allows advanced economies to benefit from transparency but excludes developing nations.

The Prime Minister also said: "Personally, I want to see the whole world moving towards public registries of beneficial ownership." This would allow all countries to benefit from knowing who owns companies and assets and take a step towards to tackling tax avoidance. It was, then, extremely disappointing and a significant U-turn that the agreements only commit the UK to a private registry of British companies and that no G8 country agreed to create a public register. We need far more than secretive lists in the UK of companies' true owners and vague promises of future action if we are to truly make progress towards ending tax secrecy.

The G8 Communique also includes lots of fine words, particularly on introducing country-by-country reporting for multinational companies and reform to rules which allow companies to shift profits out of developing countries, but no concrete action. Labour has repeatedly called for action on these issues which would enable developing countries to collect the taxes they are due and complement measures to build tax revenue collection capacity in these countries.

The Prime Minister could have used the window of opportunity presented by the G8 summit to deliver real action to tackle tax avoidance, not just for the UK, but for countries around the world.

Instead, from the beginning, he repeatedly failed to show the leadership this summit needed. On putting our own house in order, the government has consistently refused to review UK tax rules relating to controlled foreign companies which the evidence show costs developing countries £4bn a year in lost tax revenue. This is unacceptable.  

He has also been repeatedly criticised, as recently as recently as yesterday by the US, for failing to put in the necessary diplomatic and political work in the weeks and months leading up to the summit to secure meaningful deals on tax transparency. In 2005, the UK used the G8 chairmanship at Gleneagles to achieve the historic promise to increase aid by $50bn by 2010 as well as crucial steps on debt relief and climate change. This shows the magnitude of what can be achieved through ambitious hosting of the G8. But this took significant diplomatic effort and political will.

Sadly, this scale of commitment was largely lacking from the Prime Minister's approach this time around. This G8 could have done for tax and transparency what the 2005 G8 did for aid and debt relief. Instead, away from the hype and spin, when history is written, this summit will be seen as a missed opportunity in the fight against global poverty.

Labour wants to see an end to extreme poverty, a reduction in inequality and an end to aid dependency by 2030. A prerequisite to achieving these objectives will be developing countries having access to fair taxes from their citizens, domestic businesses and multinational companies. David Cameron chose the right priorities for the G8 summit but, as on so many other issues, his fine rhetoric and big promises were not matched by the  conviction or hard work necessary to deliver the radical change that we need. It is to be hoped that the G20 later this year will turn rhetoric and the promise of future action into the commitments we had expected to see. 

Ivan Lewis is the shadow international development secretary

David Cameron speaks during a press conference at the conclusion of the G8 summit in the Lough Erne resort near Enniskillen, Northern Ireland. Photograph: Getty Images.
Getty
Show Hide image

The decline of the north's sporting powerhouse

Yorkshire historically acted as a counterweight to the dominance of southern elites, in sport as in politics and culture. Now, things are different.

On a drive between Sheffield and Barnsley, I spotted a striking painting of the Kes poster. Billy Casper’s two-fingered salute covered the wall of a once-popular pub that is now boarded up.

It is almost 50 years since the late Barry Hines wrote A Kestrel for a Knave, the novel that inspired Ken Loach’s 1969 film, and it seems that the defiant, us-against-the-world, stick-it-to-the-man Yorkshireness he commemorated still resonates here. Almost two-thirds of the people of south Yorkshire voted to leave the EU, flicking two fingers up at what they saw as a London-based establishment, detached from life beyond the capital.

But whatever happened to Billy the unlikely lad, and the myriad other northern characters who were once the stars of stage and screen? Like the pitheads that dominated Casper’s tightly knit neighbourhood, they have disappeared from the landscape. The rot set in during the 1980s, when industries were destroyed and communities collapsed, a point eloquently made in Melvyn Bragg’s excellent radio series The Matter of the North.

Yorkshire historically acted as a counterweight to the dominance of southern elites, in sport as in politics and culture. Yet today, we rarely get to hear the voices of Barnsley, Sheffield, Doncaster and Rotherham. And the Yorkshire sporting powerhouse is no more – at least, not as we once knew it.

This should be a matter of national concern. The White Rose county is, after all, the home of the world’s oldest registered football club – Sheffield FC, formed in 1857 – and the first English team to win three successive League titles, Huddersfield Town, in the mid-1920s. Hull City are now Yorkshire’s lone representative in the Premier League.

Howard Wilkinson, the manager of Leeds United when they were crowned champions in 1992, the season before the Premier League was founded, lamented the passing of a less money-obsessed era. “My dad worked at Orgreave,” he said, “the scene of Mrs Thatcher’s greatest hour, bless her. You paid for putting an axe through what is a very strong culture of community and joint responsibility.”

The best-known scene in Loach’s film shows a football match in which Mr Sugden, the PE teacher, played by Brian Glover, comically assumes the role of Bobby Charlton. It was played out on the muddy school fields of Barnsley’s run-down Athersley estate. On a visit to his alma mater a few years ago, David Bradley, who played the scrawny 15-year-old Billy, showed me the goalposts that he had swung from as a reluctant goalkeeper. “You can still see the dint in the crossbar,” he said. When I spoke to him recently, Bradley enthused about his lifelong support for Barnsley FC. “But I’ve not been to the ground over the last season and a half,” he said. “I can’t afford it.”

Bradley is not alone. Many long-standing fans have been priced out. Barnsley is only a Championship side, but for their home encounter with Newcastle last October, their fans had to pay £30 for a ticket.

The English game is rooted in the northern, working-class communities that have borne the brunt of austerity over the past six years. The top leagues – like the EU – are perceived to be out of touch and skewed in favour of the moneyed elites.

Bradley, an ardent Remainer, despaired after the Brexit vote. “They did not know what they were doing. But I can understand why. There’s still a lot of neglect, a lot of deprivation in parts of Barnsley. They feel left behind because they have been left behind.”

It is true that there has been a feel-good factor in Yorkshire following the Rio Olympics; if the county were a country, it would have finished 17th in the international medals table. Yet while millions have been invested in “podium-level athletes”, in the team games that are most relevant to the lives of most Yorkshire folk – football, cricket and rugby league – there is a clear division between sport’s elites and its grass roots. While lucrative TV deals have enriched ruling bodies and top clubs, there has been a large decrease in the number of adults playing any sport in the four years since London staged the Games.

According to figures from Sport England, there are now 67,000 fewer people in Yorkshire involved in sport than there were in 2012. In Doncaster, to take a typical post-industrial White Rose town, there has been a 13 per cent drop in participation – compared with a 0.4 per cent decline nationally.

Attendances at rugby league, the region’s “national sport”, are falling. But cricket, in theory, is thriving, with Yorkshire winning the County Championship in 2014 and 2015. Yet Joe Root, the batsman and poster boy for this renaissance, plays far more games for his country than for his county and was rested from Yorkshire’s 2016 title decider against Middlesex.

“Root’s almost not a Yorkshire player nowadays,” said Stuart Rayner, whose book The War of the White Roses chronicles the club’s fortunes between 1968 and 1986. As a fan back then, I frequently watched Geoffrey Boycott and other local stars at Headingley. My favourite was the England bowler Chris Old, a gritty, defiant, unsung anti-hero in the Billy Casper mould.

When Old made his debut, 13 of the 17-strong Yorkshire squad were registered as working-class professionals. Half a century later, three of the five Yorkshiremen selec­ted for the last Ashes series – Root, Jonny Bairstow and Gary Ballance – were privately educated. “The game of cricket now is played in public schools,” Old told me. “Top players are getting huge amounts of money, but the grass-roots game doesn’t seem to have benefited in any way.”

“In ten years’ time you won’t get a Joe Root,” Rayner said. “If you haven’t seen these top Yorkshire cricketers playing in your backyard and you haven’t got Sky, it will be difficult to get the whole cricket bug. So where is the next generation of Roots going to come from?” Or the next generation of Jessica Ennis-Hills? Three years ago, the Sheffield stadium where she trained and first discovered athletics was closed after cuts to local services.

This article first appeared in the 19 January 2017 issue of the New Statesman, The Trump era