Why Britain can't afford to fall behind in the race for soft power

The west must maintain its financial support for culture and cultural diplomacy. If it fails to do so, China’s gain in global influence and trade will be our loss.

In spite of all the tweeting and electronic wizardry, the G8 meeting in Ulster was a blast from the past. It was a period costume drama, with men in suits and ties meeting to sort things out. It looked outdated because the world has changed. A new report from the British Council and Demos, Influence and Attraction: Culture and the Race for Soft Power in the 21st Century, explains what has been going on: there has been a revolution in physical and virtual contact between people. That has created a new operating context for politics and the need for a different kind of diplomacy.

Cheap flights, 24-hour news, migration and the internet have combined to create a world of mass peer-to-peer interaction. Both the scale and the means of communication have changed but, more importantly, so is the content, which is to a considerable extent cultural. Art, film, heritage, music, dance and literature have become a bridge between people. When we rub up against each other, we go to culture to make sense of our differences. When we explain who we are, we express ourselves through culture. When we want to learn about the world, we watch, read and look at culture.

This huge increase in cultural interaction has big political implications, because what happens in the cultural arena increasingly affects what politicians can do: cultural misunderstandings create political problems, while an attractive culture gives countries a licence to operate in international affairs, and a chance of being heard.

Culture itself has produced a new international political economy –  tourism into the UK is driven by culture, and tourists spend about £15bn a year here; Korea is exporting pop music to Peru; the Thai government supports food as a cultural export. But it’s not all benign, because culture has created problems for conventional politics: think of the way in which films like Braveheart, Borat and 300 have influenced debate, or how a TV series has affected Britons’ perception of Baltimore.

The big change is that both communication and culture are now democratised. This is not a coincidence, because they affect each other, and together they have created a massive increase in people power around the world. Artists, poets, actors and film-makers are leading change from Beijing to New York; they have played a major role in Tahrir Square and in Spain’s Indignados movement. And cultural voices are increasingly being heard in the mainstream political media as well: on Monday this week, an artist in Tehran was interviewed on Today about the election of Hassan Rouhani in Iran. Ten minutes later, there was a story about Pussy Riot appearing at the Meltdown Festival in London. Cultural expression and an interest in political freedom go hand-in-hand.

Governments cannot and should not control what goes in the cultural sphere, but they do need to be aware of the powerful role that culture now plays in international relations. Western governments have, on the whole, been reducing their financial support for culture and cultural diplomacy as part of the neoliberal response to the financial crisis. This is a mistake, because international cultural relations are a long game, a matter of strategic relationship building rather than short-term tactical advantage.

In contrast to western retrenchment, a lot ofcountries in the south and east, from Brazil to India, are investing heavily in promoting themselves through culture. The former Chinese President Hu Jintao clearly understood that cultural and political influence go hand-in-hand. In 2012 he worried that "The overall strength of Chinese culture and its international influence is not commensurate with China’s international status…The international culture of the west is strong while we are weak." He added, in language that sounds more military than diplomatic: "We should deeply understand the seriousness and complexity of the ideological struggle, always sound the alarms and remain vigilant, and take forceful measures to be on guard and respond." There can be no doubt that this is a battle that China wants to win: it has spent £4bn expanding its overseas media, and has opened Confucius Institutes and Classrooms in 104 countries in the last seven years.

But China also places restrictions and quotas on cultural imports, effectively allowing only 20 foreign films to be shown there each year. They are making a big mistake. Cultural power comes not from telling the world how great your culture is, but from having a two-way cultural dialogue. This means we in the UK should be spending time and effort learning about other cultures as well as supporting and promoting our own.

Winning the race for soft power requires cultural intelligence as well as cultural confidence. If we fail to understand that, then China’s gain in global influence and trade will be our loss. 

John Holden is a visiting Professor at City University. He was previously Demos's head of culture

A visitor walks past the British pavilion at the site of the World Expo 2010 in Shanghai on May 18, 2010. Photograph: Getty Images.
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In your 30s? You missed out on £26,000 and you're not even protesting

The 1980s kids seem resigned to their fate - for now. 

Imagine you’re in your thirties, and you’re renting in a shared house, on roughly the same pay you earned five years ago. Now imagine you have a friend, also in their thirties. This friend owns their own home, gets pay rises every year and has a more generous pension to beat. In fact, they are twice as rich as you. 

When you try to talk about how worried you are about your financial situation, the friend shrugs and says: “I was in that situation too.”

Un-friend, right? But this is, in fact, reality. A study from the Institute for Fiscal Studies found that Brits in their early thirties have a median wealth of £27,000. But ten years ago, a thirty something had £53,000. In other words, that unbearable friend is just someone exactly the same as you, who is now in their forties. 

Not only do Brits born in the early 1980s have half the wealth they would have had if they were born in the 1970s, but they are the first generation to be in this position since World War II.  According to the IFS study, each cohort has got progressively richer. But then, just as the 1980s kids were reaching adulthood, a couple of things happened at once.

House prices raced ahead of wages. Employers made pensions less generous. And, at the crucial point that the 1980s kids were finding their feet in the jobs market, the recession struck. The 1980s kids didn’t manage to buy homes in time to take advantage of low mortgage rates. Instead, they are stuck paying increasing amounts of rent. 

If the wealth distribution between someone in their 30s and someone in their 40s is stark, this is only the starting point in intergenerational inequality. The IFS expects pensioners’ incomes to race ahead of workers in the coming decade. 

So why, given this unprecedented reversal in fortunes, are Brits in their early thirties not marching in the streets? Why are they not burning tyres outside the Treasury while shouting: “Give us out £26k back?” 

The obvious fact that no one is going to be protesting their granny’s good fortune aside, it seems one reason for the 1980s kids’ resignation is they are still in denial. One thirty something wrote to The Staggers that the idea of being able to buy a house had become too abstract to worry about. Instead:

“You just try and get through this month and then worry about next month, which is probably self-defeating, but I think it's quite tough to get in the mindset that you're going to put something by so maybe in 10 years you can buy a shoebox a two-hour train ride from where you actually want to be.”

Another reflected that “people keep saying ‘something will turn up’”.

The Staggers turned to our resident thirty something, Yo Zushi, for his thoughts. He agreed with the IFS analysis that the recession mattered:

"We were spoiled by an artificially inflated balloon of cheap credit and growing up was something you did… later. Then the crash came in 2007-2008, and it became something we couldn’t afford to do. 

I would have got round to becoming comfortably off, I tell myself, had I been given another ten years of amoral capitalist boom to do so. Many of those who were born in the early 1970s drifted along, took a nap and woke up in possession of a house, all mod cons and a decent-paying job. But we slightly younger Gen X-ers followed in their slipstream and somehow fell off the edge. Oh well. "

Will the inertia of the1980s kids last? Perhaps – but Zushi sees in the support for Jeremy Corbyn, a swell of feeling at last. “Our lack of access to the life we were promised in our teens has woken many of us up to why things suck. That’s a good thing. 

“And now we have Corbyn to help sort it all out. That’s not meant sarcastically – I really think he’ll do it.”