Echoing Roosevelt: Matthew Barzun greets President Obama at RAF Fairford in Gloucestershire on the eve of a NATO summit in Wales, 3 September. Photo: Getty
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Matthew Barzun: Despite ebola and Isis, could it be that we are living in the best of times?

Why are we intent on fixing our lens on the chaotic? And why do we insist on trying to weave a grand narrative out of mostly unrelated things? asks the US Ambassador to Britain. 

We live in challenging, complex, even confusing times. Our world is in constant flux. Charles Dickens’s description of the French Revolution seems just as appropriate today: it is the worst of times. Indeed, it may be even more true now, as the changes are global, rather than confined to one or two countries. Newspaper headlines suggest as much. They are littered with demoralising words such as “beheadings”, “aggression”, “hatred” and “fever”. Of course, ISIL is engaged in barbarity in the Middle East that is reminiscent of some of the most grotesque of the 20th century, while the ebola virus poses a global public health threat on a scale as large as anything we’ve seen in recent decades.

At the same time, the number of refugees and internally displaced people presents a great humanitarian challenge. And human rights violations abound in many parts of the world. But here is an equally valid and, I concede, sweeping narrative that suggests this is also the best of times.

It is a time of levelling. The world has reduced extreme poverty by half since 1990. Global primary education for boys and girls is now equal.

It is a time of enduring. The number of deaths among children under five has been cut in half since 1990, meaning about 17,000 fewer children die each day. And mothers are surviving at a nearly equal rate.

It is a time of flourishing. Deaths from malaria dropped by 42 per cent between 2000 and 2012. HIV infections are declining in most regions.

It is a time of strengthening. Africa is above the poverty line for the first time. Tens of millions have been lifted out of poverty in China. The debt burden on developing coun­tries has dropped 75 per cent since 2000.

It is a time of healing. The ozone layer is showing signs of recovery thanks to global action. And all the while, the technological and communications revolution is making more people better informed than at any time in history.

So why are we intent on fixing our lens on the chaotic? And why do we insist on trying to weave a grand narrative out of mostly unrelated things? Do we believe there’s a common unravelling force at work behind the ebola tragedy, Russia’s incursion into Ukraine and the independence campaign in Scotland? My guess is that it might have more to do with how we feel than how things are.

My grandfather Jacques Barzun was a cultural historian who wrote a book called From Dawn to Decadence, in which he argued that western culture had been in decline for many decades. Less crotchety than it sounds. It was his observation that the culture had moved from confidence, to self-consciousness, to a time of “anti-” and “post-” prefixes; but he also believed that something would take its place.

Whether he was exactly right or not, there is a consensus that the world is undergoing a period of extraordinary transformation. We are experiencing a “pre-” that we can’t name yet. Understandably, we feel insecure and have a deep urge for reassurance. One reaction has been to suggest that we are in need of a grand master plan to re-ravel the world, and that President Obama’s lack of it makes him small and inconsequential.

But is a grand master plan what we really want? Vladimir Putin has one. Do we agree with him that it makes him look big? What is the best way to lead and govern in times of remarkable change?

Here’s what Teddy Roosevelt said at the dawn of the progressive era: “Do what you can, with what you have, where you are.” And one of America’s great unsung heroes, John “Gil” Winant, ambassador to Britain during the Second World War, explained in 1946 his approach to leadership in chaotic times as, “Doing the day’s work day by day, doing a little, adding a little, broadening our bases wanting not only for ourselves but for others also, a fairer chance for all people everywhere . . .”

When President Obama articulated our military policy at West Point this spring, he spoke from this same American strain. It’s a policy that has been consistent throughout his presidency. And one of the critical pieces of it is the unprecedented global alliance that the president leads, and the extraordinary results it is getting. Co-ordinated air strikes on ISIL are depleting the terror network’s capabilities, while airdrops are helping to relieve the humanitarian crises it has created. An international sanctions regime is holding Russia to account for its aggressive land-grab in Ukraine, and forcing Iran to come in from the cold over its nuclear ambitions.

Work behind the scenes has also produced some other notable successes, such as the transformation of Myanmar from firm dictatorship to fledgling democracy. In times of uncertainty, this approach of leadership matched with partnership amounts to global earthquake protection against the seismic events that must inevitably come.

It is impossible to plan for every eventuality. And it is hardly fair to accuse the US of not having a highly detailed blueprint but simultaneously warn us that we should be taking into account our allies’ opinions and concerns. We take our responsibilities seriously but cannot be responsible for everything that happens. Other international actors make choices for good and for ill. So even the most far-sighted diplomacy must sometimes be reactive.

President Obama was elected to bring much-needed change and he has delivered on that promise. But he has also proved extremely adept at managing change. His ability to do so, making America more flexible, nimble and creative in response to global threats, has made the US and the world more peaceful, more prosperous and more just. 

Matthew Barzun is the US ambassador to the United Kingdom. @MatthewBarzun

This article first appeared in the 15 October 2014 issue of the New Statesman, Isis can be beaten

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Stability is essential to solve the pension problem

The new chancellor must ensure we have a period of stability for pension policymaking in order for everyone to acclimatise to a new era of personal responsibility in retirement, says 

There was a time when retirement seemed to take care of itself. It was normal to work, retire and then receive the state pension plus a company final salary pension, often a fairly generous figure, which also paid out to a spouse or partner on death.

That normality simply doesn’t exist for most people in 2016. There is much less certainty on what retirement looks like. The genesis of these experiences also starts much earlier. As final salary schemes fall out of favour, the UK is reaching a tipping point where savings in ‘defined contribution’ pension schemes become the most prevalent form of traditional retirement saving.

Saving for a ‘pension’ can mean a multitude of different things and the way your savings are organised can make a big difference to whether or not you are able to do what you planned in your later life – and also how your money is treated once you die.

George Osborne established a place for himself in the canon of personal savings policy through the introduction of ‘freedom and choice’ in pensions in 2015. This changed the rules dramatically, and gave pension income a level of public interest it had never seen before. Effectively the policymakers changed the rules, left the ring and took the ropes with them as we entered a new era of personal responsibility in retirement.

But what difference has that made? Have people changed their plans as a result, and what does 'normal' for retirement income look like now?

Old Mutual Wealth has just released. with YouGov, its third detailed survey of how people in the UK are planning their income needs in retirement. What is becoming clear is that 'normal' looks nothing like it did before. People have adjusted and are operating according to a new normal.

In the new normal, people are reliant on multiple sources of income in retirement, including actively using their home, as more people anticipate downsizing to provide some income. 24 per cent of future retirees have said they would consider releasing value from their home in one way or another.

In the new normal, working beyond your state pension age is no longer seen as drudgery. With increasing longevity, the appeal of keeping busy with work has grown. Almost one-third of future retirees are expecting work to provide some of their income in retirement, with just under half suggesting one of the reasons for doing so would be to maintain social interaction.

The new normal means less binary decision-making. Each choice an individual makes along the way becomes critical, and the answers themselves are less obvious. How do you best invest your savings? Where is the best place for a rainy day fund? How do you want to take income in the future and what happens to your assets when you die?

 An abundance of choices to provide answers to the above questions is good, but too much choice can paralyse decision-making. The new normal requires a plan earlier in life.

All the while, policymakers have continued to give people plenty of things to think about. In the past 12 months alone, the previous chancellor deliberated over whether – and how – to cut pension tax relief for higher earners. The ‘pensions-ISA’ system was mooted as the culmination of a project to hand savers complete control over their retirement savings, while also providing a welcome boost to Treasury coffers in the short term.

During her time as pensions minister, Baroness Altmann voiced her support for the current system of taxing pension income, rather than contributions, indicating a split between the DWP and HM Treasury on the matter. Baroness Altmann’s replacement at the DWP is Richard Harrington. It remains to be seen how much influence he will have and on what side of the camp he sits regarding taxing pensions.

Meanwhile, Philip Hammond has entered the Treasury while our new Prime Minister calls for greater unity. Following a tumultuous time for pensions, a change in tone towards greater unity and cross-department collaboration would be very welcome.

In order for everyone to acclimatise properly to the new normal, the new chancellor should commit to a return to a longer-term, strategic approach to pensions policymaking, enabling all parties, from regulators and providers to customers, to make decisions with confidence that the landscape will not continue to shift as fundamentally as it has in recent times.

Steven Levin is CEO of investment platforms at Old Mutual Wealth.

To view all of Old Mutual Wealth’s retirement reports, visit: products-and-investments/ pensions/pensions2015/