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What David Cameron can learn from Abraham Lincoln

Wearing the Union blue.

Abraham Lincoln’s Emancipation Proclamation of 1863 is one of the noblest statements ever delivered, and forcing the abolition bill through a reluctant Congress, as Steven Spielberg’s masterful Oscarnominated film attests, was a monumental achievement. But Lincoln’s principal contribution to American history was to save the Union, as those from the Southern states are quick to tell you. In the former Confederacy, the civil war is still called “the War Between the States”.

Lincoln confided his thoughts about secession and slavery in a letter of 1862. “If I could save the Union without freeing any slave I would do it, and if I could save it by freeing all the slaves I would do it; and if I could save it by freeing some and leaving others alone I would also do that,” he wrote. “What I do about slavery, and the coloured race, I do because I believe it helps to save the Union; and what I forbear, I forbear because I do not believe it would help to save the Union.”

His proclamation did not, in fact, free the slaves in the North, nor was he in a position to free slaves in the Confederate South, but, under his powers as commander-in-chief in wartime, he issued an executive order that freed all slaves in the Southern states as soon as they were occupied by the Union army.

It may at first seem a little far-fetched, but there are poignant similarities between the conundrum that Lincoln encountered 150 years ago and the dilemma David Cameron faces today. They are both confronted with threats to the very existence of the nations they govern. While Lincoln was obliged to respond to a fait accompli, a group of slave states that had decided before his election to wrest themselves from the Union, by force of arms if necessary, Cameron finds himself under siege on all sides. But while Lincoln was presented with the simple option of whether to take up arms to defend the Union or watch as his country split in two, Cam eron has no such easy choice.

In Scotland, the Scottish National Party has finally achieved what it has been dreaming of for 80 years. It has a mandate to demand from Westminster a referendum on whether, after three centuries united with England and Wales, Scotland should become a free nation again. The Union came about as a result of the Union of the Crowns, when the Scottish king James VI, son of Mary, Queen of Scots, acceded to the throne of England following the death of the childless Elizabeth I in 1603. It took a full century before the English and Scottish parliaments combined in the Acts of Union of 1707. Lincoln was obliged to defend a union barely 90 years old; Cameron must protect a union that has lasted more than 300 years.

In Ireland, Cameron presides over the latest skirmish in a bloody struggle that has lasted much longer. The colonisation of Ireland was messy and brutal from the start, and the independence wrested from Britain in 1922 left the northern, overwhelmingly Protestant and unionist part of the island in British hands. A border had to be drawn somewhere, leaving many who would prefer to live in the republic stranded in a British province. The continuing troubles offer a challenge to Cameron to find a permanent peace. No less than in Scotland, British sovereignty and British lives are severely at risk.

Then there is the European Union. Those with a sense of history will remember that joining Europe was always predominantly a Conservative project. It was Harold Macmillan, with Edward Heath at his side, who first flirted with the continentals in 1961 and had his overture rudely rebuffed by Charles de Gaulle’s “Non!”. Heath the eternal bachelor then made it his life’s mission to make a marriage with the Europeans and the lasting legacy of his otherwise awkward, chilly and ultimately tragic premiership was British entry into the European Economic Community in 1973. As Cameron must be all too aware, the principled Heath condemned the referendum that Harold Wilson called on European membership two years later as a shabby gimmick, designed to appease internal Labour divisions over the Common Market.

Since the moment when Heath’s successor Margaret Thatcher – who had campaigned in favour of remaining in Europe in 1975 – began arguing, as prime minister after 1979, against closer European union, the Conservatives have been profoundly and openly divided on the matter. The rupture over Europe, even more than Thatcher’s unpopular poll tax, led to her defenestration by cabinet colleagues in 1990. John Major’s leadership of the Tories was blighted by the question of Europe; and the election of three Eurosceptic leaders in a row – William Hague, Iain Duncan Smith and Michael Howard – did not settle the matter.

Cameron’s inheritance is a party facing both ways on Europe, and his inability to reconcile the opposing forces has given rise to a challenge for the affections of his patriotic electoral base from the anti-European Ukip. Although Ukip’s leader, Nigel Farage, along with every other Ukip candidate, failed to win a Commons seat in 2010 (Farage was beaten by a candidate dressed as a dolphin), his party stole enough votes from the Conservatives to deprive Cameron of a parliamentary majority.

When he dreamed of leading his party, Cameron could never have imagined that Britain’s existence would be subject to a three-pronged attack. But he finds himself in the same position as today’s Republican leadership in America, under assault from angry rank and file who feel they are being ignored and betrayed by their leaders. The Republicans, once the proud “party of Lincoln”, have evolved into a testy vehicle for insurgent mavericks and malcontents.

To add insult to indignity, the “Grand Old Party”, which once bravely saved the Union, is the home of a new secessionist movement. Having failed to devolve substantial powers from the federal government to the states, many are demanding independence. At present, eight states, all from the defeated Confederacy, have petitioned the White House to be allowed to secede: Texas, Louisiana, Florida, Georgia, Tennessee, North Carolina, Alabama and South Carolina. The muddled, ahistorical thinking behind the treacherous talk is evident in the argument proffered by the libertarian Ron Paul: “It’s very American to talk about secession. That’s how we came into being.”

On a personal level, there are as few similarities between Cameron and Lincoln as between Jacob and Esau. Lincoln was brought up in a sparsely furnished log cabin and, much to his ignorant father’s despair, taught himself to read and write, eventually emerging as a jobbing country lawyer in Illinois. Cameron, as we know, was the son of high privilege. Everyone who met Lincoln commented on his rough looks and his even rougher clothes. Cameron’s smooth, unlined face betrays an easy, affluent, well-fed life.

Both men, however, could be described more accurately as Whigs than Conservatives, in their commitment to parliament or Congress over absolute powers held by the monarch or president. Indeed, Lincoln was an old American Whig before he joined the Republicans over the issue of abolition. Allied to their commitment to rewarding individual effort, irrespective of background, is a strong, Protestant sense that their good fortune entails paying something back. Despite his comfortable circumstances, Cameron has argued that “it’s where you are going to, not where you have come from, that matters”. In a decisive break from the philosophy of heroic individualism that inspired Thatcher, he believes “there is such a thing as society”.

As well as soaring ambition, the two men share other similarities. Both are most eloquent when they do not refer to notes. Although stiff and wooden at first, Lincoln’s speeches gathered pace and by the peroration he would be ripping off his necktie, loosening his starched collar and throwing his arms around like a deranged windmill. “His pronunciation is bad, his manners uncouth and his general appearance anything but prepossessing,” is how one eyewitness described his platform presence.

Cameron’s delivery is calm, ordered and deliberate. His speech to the Tory party conference in 2005, delivered without notes, may not have been as powerful and inspirational as the 268 words of Lincoln’s Gettysburg Address of 1863, which would be a tall order for anyone except, perhaps, Winston Churchill. But the performance at Blackpool, in its carefully pitched content tailored to the party faithful and the confidence of its delivery, ensured his election as leader.

Lincoln took into his administration the big beasts of the Republican Party whom he had beaten to the Republican nomination: William H Seward, Salmon P Chase and Edward Bates. And Cameron, too, assembled a team of former rivals. To become Tory leader, he saw off David Davis, Liam Fox and Kenneth Clarke, all of whom he invited into his shadow cabinet. Like Lincoln, Cameron leads his disparate colleagues with the minimum of friction. But there the favourable comparisons between the two leaders start to run out.

Lincoln was always a man of principle rather than pragmatism. He could be rash, failing to hold his tongue in the presence of those he knew disagreed with him, and found it difficult to compromise even when it was in his best interest to do so. Nowhere was this more obvious and powerful than when he spelled out, years before running for the White House, what he felt about race.

He declared that when the Founding Fathers wrote, “We hold these truths to be selfevident: that all men are created equal,” they meant “the whole great family of man” and not merely those with white faces. Lincoln said the founders knew enough about human nature to imagine that, “in the distant future”, people would emerge who would “set up the doctrine that none but rich men, or none but white men, were entitled to life, liberty and the pursuit of happiness”. But he was certain that racism could never have been in the founders’ minds and he would have none of it.

In comparison to this eloquent statement of principle, just one among dozens that Lincoln crisply articulated in his short life, Cam - eron emerges as a dissembler, always alert for a way to delay taking a stand, ever ready with the smudgy phrase and the tactical retreat. Let us give him a pass on Ireland. Few have got it right and it may well be insoluble so long as a vociferous minority in Northern Ireland demands the impossible and the intractable majority insists on being British. In Scotland, however, when the SNP obtained a majority in the Scottish Parliament and claimed a mandate to call a referendum on independence, Cameron readily ignored Lincoln’s example to resist the dissolution of the Union and readily agreed to Alex Salmond’s demands.

In calling an all-or-nothing, in-out referendum on independence next year in Scotland only, David William Donald Cameron, to give him his full, Scots-derived name, failed to question the legality of one half of the nation being able to secede from the other on its own cognisance. Instead, he conceded the principle that if the referendum records a majority of Scots in favour of secession, that is enough to grant a divorce, as if England, Wales and Northern Ireland, and the Scots living in the rest of Britain, were not entitled to a say in the dissolution of the United Kingdom. “I’m not going to stand here and suggest Scotland couldn’t make a go of being on its own, if that’s what people decide,” Cameron said. “There are plenty of small, independent nation states of a similar size or even smaller. Scotland could make its way in the world alongside countries like those.”

Lincoln would never have yielded on such a fundamental principle. As he put it, “If we do not make common cause to save the good old ship of the Union on this voyage, nobody will have a chance to pilot her on another voyage.”

When Cameron conceded the principle that one part of the United Kingdom may constitutionally break from the rest, he also declared himself “ready for the fight for our country’s life”. He appears to be in favour of two incompatible principles, the right of Britain to remain a nation and the right of Scotland to secede. He then adopts the principle that gives Scotland the moral right to secede to inform his party’s demand that Britain be allowed to renegotiate a looser union with our European partners. What, then, is Cameron’s guiding principle when dealing with Scotland and the European Union? There is none. Both are craven acts of political expedience. His promise of a referendum on British membership of the EU is largely an attempt to save the Conservatives from being driven from office by Ukip.

Cameron’s answer to the Ukip threat to the renewal of his Downing Street lease is to avoid saying exactly what the relationship between Britain and the EU should be, because plainly he doesn’t know where the line should be drawn. Instead he abrogates the responsibility of a true leader and, in the hope of being re-elected, promises an in-out referendum on EU membership, so long as he is re-elected. As Lincoln asked, “What is conservatism? Is it not adherence to the old and tried against the new and untried?”

Cameron is less a conservative than a trimmer, less a Heath than a Wilson, less a That - cher than a Blair.

When Lincoln confronted the break-up of the United States, he borrowed from the Gospel according to Saint Matthew: “A house divided against itself cannot stand.” To avoid the consequences of the Conservatives’ deeply divided house, Cameron is willing to risk the dissolution of the United Kingdom and British withdrawal from the European Union. Both are too high a price to pay for trying to bridge the irrevocable schism in the Tory ranks.

Nicholas Wapshott’s most recent book is “Keynes Hayek: the Clash That Defined Modern Economics” (W W Norton, £12.99)

Nicholas Wapshott’s Keynes Hayek: the Clash That Defined Modern Economics is published by W W Norton (£12.99)

This article first appeared in the 11 February 2013 issue of the New Statesman, Assange Alone

Jeremy Corbyn. Photo: Getty
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Lexit: the EU is a neoliberal project, so let's do something different when we leave it

Brexit affords the British left a historic opportunity for a decisive break with EU market liberalism.

The Brexit vote to leave the European Union has many parents, but "Lexit" – the argument for exiting the EU from the left – remains an orphan. A third of Labour voters backed Leave, but they did so without any significant leadership from the Labour Party. Left-of-centre votes proved decisive in determining the outcome of a referendum that was otherwise framed, shaped, and presented almost exclusively by the right. A proper left discussion of the issues has been, if not entirely absent, then decidedly marginal – part of a more general malaise when it comes to developing left alternatives that has begun to be corrected only recently, under Jeremy Corbyn and John McDonnell.

Ceding Brexit to the right was very nearly the most serious strategic mistake by the British left since the ‘70s. Under successive leaders Labour became so incorporated into the ideology of Europeanism as to preclude any clear-eyed critical analysis of the actually existing EU as a regulatory and trade regime pursuing deep economic integration. The same political journey that carried Labour into its technocratic embrace of the EU also resulted in the abandonment of any form of distinctive economics separate from the orthodoxies of market liberalism.

It’s been astounding to witness so many left-wingers, in meltdown over Brexit, resort to parroting liberal economics. Thus we hear that factor mobility isn’t about labour arbitrage, that public services aren’t under pressure, that we must prioritise foreign direct investment and trade. It’s little wonder Labour became so detached from its base. Such claims do not match the lived experience of ordinary people in regions of the country devastated by deindustrialisation and disinvestment.

Nor should concerns about wage stagnation and bargaining power be met with finger-wagging accusations of racism, as if the manner in which capitalism pits workers against each other hasn’t long been understood. Instead, we should be offering real solutions – including a willingness to rethink capital mobility and trade. This places us in direct conflict with the constitutionalised neoliberalism of the EU.

Only the political savvy of the leadership has enabled Labour to recover from its disastrous positioning post-referendum. Incredibly, what seemed an unbeatable electoral bloc around Theresa May has been deftly prized apart in the course of an extraordinary General Election campaign. To consolidate the political project they have initiated, Corbyn and McDonnell must now follow through with a truly radical economic programme. The place to look for inspiration is precisely the range of instruments and policy options discouraged or outright forbidden by the EU.

A neoliberal project

The fact that right-wing arguments for Leave predominated during the referendum says far more about today’s left than it does about the European Union. There has been a great deal of myth-making concerning the latter –much of it funded, directly or indirectly, by the EU itself.

From its inception, the EU has been a top-down project driven by political and administrative elites, "a protected sphere", in the judgment of the late Peter Mair, "in which policy-making can evade the constraints imposed by representative democracy". To complain about the EU’s "democratic deficit" is to have misunderstood its purpose. The main thrust of European economic policy has been to extend and deepen the market through liberalisation, privatisation, and flexiblisation, subordinating employment and social protection to goals of low inflation, debt reduction, and increased competitiveness.

Prospects for Keynesian reflationary policies, or even for pan-European economic planning – never great – soon gave way to more Hayekian conceptions. Hayek’s original insight, in The Economic Conditions of Interstate Federalism, was that free movement of capital, goods, and labour – a "single market" – among a federation of nations would severely and necessarily restrict the economic policy space available to individual members. Pro-European socialists, whose aim had been to acquire new supranational options for the regulation of capital, found themselves surrendering the tools they already possessed at home. The national road to socialism, or even to social democracy, was closed.

The direction of travel has been singular and unrelenting. To take one example, workers’ rights – a supposed EU strength – are steadily being eroded, as can be seen in landmark judgments by the European Court of Justice (ECJ) in the Viking and Laval cases, among others. In both instances, workers attempting to strike in protest at plans to replace workers from one EU country with lower-wage workers from another, were told their right to strike could not infringe upon the "four freedoms" – free movement of capital, labour, goods, and services – established by the treaties.

More broadly, on trade, financial regulation, state aid, government purchasing, public service delivery, and more, any attempt to create a different kind of economy from inside the EU has largely been forestalled by competition policy or single market regulation.

A new political economy

Given that the UK will soon be escaping the EU, what opportunities might this afford? Three policy directions immediately stand out: public ownership, industrial strategy, and procurement. In each case, EU regulation previously stood in the way of promising left strategies. In each case, the political and economic returns from bold departures from neoliberal orthodoxy after Brexit could be substantial.

While not banned outright by EU law, public ownership is severely discouraged and disadvantaged by it. ECJ interpretation of Article 106 of the Treaty on the Functioning of the European Union (TFEU) has steadily eroded public ownership options. "The ECJ", argues law professor Danny Nicol, "appears to have constructed a one-way street in favour of private-sector provision: nationalised services are prima facie suspect and must be analysed for their necessity". Sure enough, the EU has been a significant driver of privatisation, functioning like a ratchet. It’s much easier for a member state to pursue the liberalisation of sectors than to secure their (re)nationalisation. Article 59 (TFEU) specifically allows the European Council and Parliament to liberalise services. Since the ‘80s, there have been single market programmes in energy, transport, postal services, telecommunications, education, and health.

Britain has long been an extreme outlier on privatisation, responsible for 40 per cent of the total assets privatised across the OECD between 1980 and 1996. Today, however, increasing inequality, poverty, environmental degradation and the general sense of an impoverished public sphere are leading to growing calls for renewed public ownership (albeit in new, more democratic forms). Soon to be free of EU constraints, it’s time to explore an expanded and fundamentally reimagined UK public sector.

Next, Britain’s industrial production has been virtually flat since the late 1990s, with a yawning trade deficit in industrial goods. Any serious industrial strategy to address the structural weaknesses of UK manufacturing will rely on "state aid" – the nurturing of a next generation of companies through grants, interest and tax relief, guarantees, government holdings, and the provision of goods and services on a preferential basis.

Article 107 TFEU allows for state aid only if it is compatible with the internal market and does not distort competition, laying out the specific circumstances in which it could be lawful. Whether or not state aid meets these criteria is at the sole discretion of the Commission – and courts in member states are obligated to enforce the commission’s decisions. The Commission has adopted an approach that considers, among other things, the existence of market failure, the effectiveness of other options, and the impact on the market and competition, thereby allowing state aid only in exceptional circumstances.

For many parts of the UK, the challenges of industrial decline remain starkly present – entire communities are thrown on the scrap heap, with all the associated capital and carbon costs and wasted lives. It’s high time the left returned to the possibilities inherent in a proactive industrial strategy. A true community-sustaining industrial strategy would consist of the deliberate direction of capital to sectors, localities, and regions, so as to balance out market trends and prevent communities from falling into decay, while also ensuring the investment in research and development necessary to maintain a highly productive economy. Policy, in this vision, would function to re-deploy infrastructure, production facilities, and workers left unemployed because of a shutdown or increased automation.

In some cases, this might mean assistance to workers or localities to buy up facilities and keep them running under worker or community ownership. In other cases it might involve re-training workers for new skills and re-fitting facilities. A regional approach might help launch new enterprises that would eventually be spun off as worker or local community-owned firms, supporting the development of strong and vibrant network economies, perhaps on the basis of a Green New Deal. All of this will be possible post-Brexit, under a Corbyn government.

Lastly, there is procurement. Under EU law, explicitly linking public procurement to local entities or social needs is difficult. The ECJ has ruled that, even if there is no specific legislation, procurement activity must "comply with the fundamental rules of the Treaty, in particular the principle of non-discrimination on grounds of nationality". This means that all procurement contracts must be open to all bidders across the EU, and public authorities must advertise contracts widely in other EU countries. In 2004, the European Parliament and Council issued two directives establishing the criteria governing such contracts: "lowest price only" and "most economically advantageous tender".

Unleashed from EU constraints, there are major opportunities for targeting large-scale public procurement to rebuild and transform communities, cities, and regions. The vision behind the celebrated Preston Model of community wealth building – inspired by the work of our own organisation, The Democracy Collaborative, in Cleveland, Ohio – leverages public procurement and the stabilising power of place-based anchor institutions (governments, hospitals, universities) to support rooted, participatory, democratic local economies built around multipliers. In this way, public funds can be made to do "double duty"; anchoring jobs and building community wealth, reversing long-term economic decline. This suggests the viability of a very different economic approach and potential for a winning political coalition, building support for a new socialist economics from the ground up.

With the prospect of a Corbyn government now tantalisingly close, it’s imperative that Labour reconciles its policy objectives in the Brexit negotiations with its plans for a radical economic transformation and redistribution of power and wealth. Only by pursuing strategies capable of re-establishing broad control over the national economy can Labour hope to manage the coming period of pain and dislocation following Brexit. Based on new institutions and approaches and the centrality of ownership and control, democracy, and participation, we should be busy assembling the tools and strategies that will allow departure from the EU to open up new political-economic horizons in Britain and bring about the profound transformation the country so desperately wants and needs.

Joe Guinan is executive director of the Next System Project at The Democracy Collaborative. Thomas M. Hanna is research director at The Democracy Collaborative.

This is an extract from a longer essay which appears in the inaugural edition of the IPPR Progressive Review.

 

 

This article first appeared in the 11 February 2013 issue of the New Statesman, Assange Alone