The Tory right are wrong: the 0.7% aid target is not just moral but smart

The aid recipients of today can become the trading partners of tomorrow. Cutting now would be a betrayal of the poor and our national interest.

The UN have compared the devastation in the Philippines to the Boxing Day Tsunami, the Red Cross described the scene as "bedlam", and hardened journalists on the ground say they have never seen anything like it before.

There is no question that the scene in Tacloban and much of the Philippines represents a full-blown humanitarian crisis – more than 4,000 dead, over 13 million affected and three million displaced. One week on, as aid slowly begins to trickle through, experts warn we are entering the peak danger zone for the spread of infectious diseases. And with sanitation and clean water scarce, dysentery, diarrhoea and E.Coli are now real and growing threats.

Here at home, the British people have once again responded with tremendous generosity. We all know times are tough, yet still the DEC appeal has already raised over £35m – and during a week in which Children in Need also raised over £30m. Of this we should all be proud.

And as sure as night follows day, as aid comes once again into the spotlight, it is no surprise that the siren voices of the Tory right are calling for a reduction in the help this country gives to those in desperate need. In a week when the British people have shown such extraordinary generosity that’s not just utterly out of touch – it’s wrong headed too.

It all comes down to a simple question. What sort of world do we want? Safe, prosperous and fair would be pretty near the top of most people’s lists. That is part of what international development is for.

In the five minutes it will take you to read this, more than 400 children will be immunised against preventable diseases thanks to projects supported by British aid. Because of that programme, 500,000 lives will be saved - 500,000 individual tragedies prevented. 

But a simple truth remains - far, far too many aren’t getting a fair chance in life. So the moral case for keeping our promise on overseas aid is overwhelming. Lives are saved, children are educated and communities get a fair chance thanks to the generosity of the British people. We should take great pride in that.

But giving aid isn’t just a moral choice - it’s the smart choice, too. The world today is interconnected like never before. Our national interest, our economy and our security, depends on the stability of many of those countries supported by DFID.

As a trading nation, we know exporting more will help us tackle some of the structural problems in our economy. And the aid recipients of today can become the trading partners of tomorrow. Where once we gave aid to South Korea, now they are one of our fastest growing markets. Helping South Korea, then, is helping us now.

That’s what international aid is about. Aid isn't about charity; it’s about human dignity. Reducing the need for aid in the future, helping countries create their own wealth and prosperity. More South Koreas, more trading partners and more opportunities for Britain.

And a fairer, more prosperous world is a safer world too. Depravation and inequality lead to desperation and illegality; conflict over scarce recourses and the vile trade in exploited people and a multitude of refugee crises. In many fragile states, youth unemployment runs at over 80%. In today’s globalised world, that’s not just a lack of human opportunity, but also a danger to us all.

As I’ve long argued, the best defence policy can sometimes be world class diplomacy. A more stable world means a safer UK. British aid supports fragile and conflict-ridden states, helps bring them out of the danger zone, and prevents the sort of conditions that breed radicalisation, violence and war. The right thing to do and the smart thing to do. How different could things be today if the world had invested more in securing Afghanistan and Somalia decades ago?

What happens in the rest of the world has an impact on us. That’s why the last Labour government led the international community in development. And we achieved a huge amount – we convinced the world to drop the debt at Gleneagles in 2005, and in 2008 we argued for and won new international commitments on malaria, food, education and health.

Under Labour, this country made a promise to the world that we would give 0.7% of our Gross National Income to overseas aid, a promise that David Cameron has rightly pledged to uphold. That’s not a commitment we can just walk away from - it wouldn’t be right and it wouldn’t be in the national interest.

Britain’s commitment to 0.7% shouldn’t just be about a rebranding exercise for the Tories - it is deeper than that. It tells you about who we are as a country. 0.7% says we are committed to a safe, prosperous and fair world for everyone.

But that doesn’t mean we shouldn’t make sure every penny is well spent. Value for money is always important but in these difficult times iron discipline across every government department is absolutely vital - including at International Development. So Labour are clear - we will have a zero tolerance approach to failure, corruption and waste.

In a field where a few pence can save a life, we should seek not to waste a penny. As we build a new global covenant to replace the Millennium Development Goals, we must give what we promised, but we should go further - we must keep innovating, keep improving, and make sure every pound is spent wisely.

Jim Murphy is shadow international development secretary

Somalis displaced by famine queue at a food aid distribution centre in Mogadishu on January 19, 2012. Photograph: Getty Images.

Jim Murphy is shadow international development secretary and Labour MP for East Renfrewshire

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Brexit is an opportunity to rethink our economic model

Our industrial strategy must lift communities out of low-wage stagnation, writes the chair of the Prime Minister's policy board. 

With the long term fallout of the great crash of 2008 becoming clearer the issue of "inclusive growth" has never been more urgent.

Eight years after the Great Crash, it is becoming clear that the long term impacts of the crisis profoundly challenges the model of economy - and politics - we have become used to. Asset inflation and technological revolutions are entrenching untold wealth for a small global elite.

This sits alongside falling relative disposable incomes for the many, and increasing difference in the disposable income of different generations. Meanwhile, a cohort of "just-about-managing" citizens are working harder than ever simply to get by, despite falling rates of savings. All of this – along with a persistent structural deficit in pensions, welfare and health budgets - combines to create an urgent need for new economic thinking about a model of growth and 21st century economic citizenship that works better for all people and places in our country.

The main political parties have set out to tackle these challenges and develop policy programmes for them. Theresa May has set out a bold new Conservative agenda of reforms to help those of our fellow citizens who are working hard but struggling to get by: to build an economy that works for everyone, and for the people and places left behind.

But this challenge is also generational, and will need thinkers from all parties - and none - to talk and think together about fresh approaches. This is why this cross-party initiative on inclusive growth is a welcome contribution to the policy debate.

The Prime Minister leads a government committed not just to deliver Brexit, but also to the fresh thinking and fresh solutions to the scale of the domestic challenges we face, which clearly contributed to the scale of the Leave vote last June. As she has said, it's clear that as well as rejecting the EU, voters were rejecting a model of growth that wasn’t working for them.

The UK’s vote to leave the European Union was one of the most dramatic and significant political events in decades – for this country and potentially for Europe. It changes everything: our economic model, our long term economic prospects, the assumptions and mechanisms through which we run most of our government and the diplomatic and economic status of the UK internationally.

Delivering a successful Brexit – one which strengthens our global security, our united kingdom, our economy and popular trust in parliamentary democracy, and a model of political economy that works to these ends, will dominate this political generation.

This is a challenge. But it is also an unprecedented opportunity to reform our model of political economy to tackle the causes of deepening domestic political disillusionment and put our country on the path to long-term recovery. 

Brexit provides us with a unique chance to address two of the most important public policy challenges facing our country.

First, the need to enable and enhance the conditions for creating and developing greater enterprise and innovation across our economy, in order to increase competitiveness and productivity. Second, the need to tackle the growing alienation of so many people and places from the opportunities of globalisation, which has in turn entrenched attitudes towards welfarism. I believe these two challenges are fundamentally linked. 

Without social mobility, and the removal of the barriers holding back national and regional participation enterprise, we will never be able to tackle the structural challenges of productivity, public service modernisation, competitiveness and innovation. 

It's becoming clearer to more and more people that a 21st century "innovation economy" both requires and drives an "opportunity society". You can't have an enterprising economy with low rates of social mobility. And the entrepreneurial spirit of economic aspiration is the fuel that powers the engine of social mobility.

For too long, we have run an economic model based on generating growing tax revenues from an ever smaller global elite, in order to pay for the welfare costs of a workforce increasingly dependent on handouts.

Whitehall has tended to treat social policy quite separately from economic policy. This siloed thinking – the Treasury and the Department for Business, Energy and Industrial Strategy for "growth" and the Department for Work and Pensions, Department of Health and Department for Education for "public services" - compounds a lack of the kind of integrated policymaking needed to tackle the socio-economic causes of low productivity. The challenges holding back the people and places we need to help do not fall neatly into Whitehall silos. 

Since 1997, successive governments have pursued a model of growth based on a booming service sector, high levels of low-cost migrant labour and housing and asset inflation. At the same time, policymakers tried to put in place framework to support long term industrial renaissance and rebalancing. The EU referendum demonstrated that this model of growth was not working for enough people. 

Our industrial strategy must be as much about lifting communities out of low-skill and low-wage stagnation as it is about driving pockets of new activity. We need Cambridge to continue to grow, but we also need to ensure that communities from Cromer to Carlisle and Caithness, which do not enjoy the benefits of being a global technology cluster, can participate too. That means new measures to spread opportunities more widely. 

The Great Crash and its aftermath - including Brexit - represents a chance for a new generation to think these problems through and tackle them. We all have a part to play. Six years ago, I set up the 2020 Conservatives Group in Parliament, as a forum for a new generation of progressive Conservative MPs, regardless of increasingly old-fashioned labels of "left" or "right", or where they stood on the Europe debate. This is a forum to discuss new ways to tackle the current problems facing our country, beyond the conventional silos of Whitehall. Drawing on previous career experiences outside of Parliament, the group also looks ahead strategically at the potential longer-term social and economic challenges that may confront us in the future.

I believe that technology, and a new zeitgeist for public sector (as well as private sector) enterprise hold the key to resolving the barriers that are currently holding back the development of new opportunities. With new approaches, better infrastructure and skills connecting opportunities with the people and places left behind, better incentives for our great innovators, and new models of mutualised public/private partnerships and ventures, we can build an economy that genuinely works for everyone.

The government has already set about making this happen. Through the industrial strategy, the £23bn package of investment in new infrastructure and innovation announced by the Chancellor, Philip Hammond, we can now be much bolder in developing a 21st century knowledge economy infrastructure that will be the foundation for economic success. 

The success of inclusive growth rests on a number of core foundations - that our economy grows, that social inequality is redressed; that people are given the skills they need to pursue a career in the new economy and that we better spread the opportunities of the global economy hitherto enjoyed by a segment of our workforce to the many. 

This can only be achieved if we recognise the way in which enterprise and opportunity are interdependent. Together, politicians from all parties have a chance to set out a new path for a Global Britain: making our country the world capital of innovation and opportunity. Not trickle-down economics, but "innovation economics" where the private and public sector commit to a programme of supporting each other for mutual benefit.

An economy that works for everyone is an economy in which the country unites around the twin pillars of opportunity and security, which are open to all. A country in which "shared values" are as important as "shareholder value". And in which both are better shared by all. A country once again with that precious alignment of economic and social purpose which is the hallmark of all great civilisations. It's a great prize.

This is an edited version of George Freeman's article for All-Party Parliamentary Group on Inclusive Growth's new "State of the Debate" report, available to download here.The APPG on Inclusive Growth's "State of the Debate" event with the OECD, World Economic Forum, RSA and IPPR is on Tuesday 21st February at 6.30pm at Parliament. See www.inclusivegrowth.co.uk for full details. 

George Freeman is the MP for Mid-Norfolk and the chair of the Prime Minister's Policy Board.