July 10th, 2009

Why big government is bad government

Posted by: Jill Kirby

jill-kirby-Jill Kirby is author of “The Reality Gap” and director of the Centre for Policy Studies. The opinions expressed are her own. -

In the midst of an economic crisis, we have a crisis of trust in politicians. But it is not through their lack of activity. Over the last ten years, layers of government have multiplied, more regulatory bodies have been put in place, thousands of new laws have been passed and greater powers of surveillance have been accorded to the State.

Yet as government activism has increased, so public confidence has fallen. High levels of regulation co-exist with extreme regulatory failure. From the banking crisis to Baby P, Labour had introduced elaborate new systems of governance which, far from preventing disaster, appears to have contributed.

How has government become so big and yet so ineffective? Five techniques have been used to disguise failure as success. First, moving goalposts - changing the criteria for measurement. In the dilution of education standards, in the selective us of targets and statistics, in the manipulation of public finances and Gordon Brown’s flexible use of the so-called Golden Rules, the Government has relied on bending the rules of the game in order to claim success.

The reality gap widens; public disbelief and disillusionment set in. The media begin to challenge the Government’s version of events. And ministers cast around for new ways ] to convince us that life has got better – like putting targets into law. This is technique number two.

Having failed to meet all its (redefined) intermediate targets to abolish child poverty, the government is now legislating for its abolition. No-one seriously believes that this – or the targets in last year’s Climate Change Act - can be met, but opposition politicians are unwilling to challenge them.

The third technique is to treat governing as a public relations exercise. Every department publishes a stream of glossy brochures in the guise of departmental reports, consultation papers and “business plans.” The Treasury’s Budget Report used to appear in plain covers.

Now it’s called “Building Britain’s future.” The Home Office alone has ten documents listed on its website as “Corporate Publications.” We are not told how much all these brochures cost the taxpayer – but the figure would dwarf the 400 million pounds officially spent last year on government advertising.

Technique number four is the collection of vast quantities of data. Another form of virtual activity by government and its agencies, it places a huge burden on social workers, school and NHS staff, the police and probation service. The fact that data has been collected does not mean it is used effectively; it simply creates the appearance of compliance. It also crowds out human contact and common sense.

The fifth and final technique, overlaying all the rest, is complexity – of systems and language. From the elaborate structure of our tax and benefits system to the maze of procedure in children’s services, with its “multi-agency partnerships” and “consensual decision-making.” With benchmarks and beacons, learning pathways and person-centred planning, most government documents require translation into plain English before their significance can be assessed.

This Government has proved that more means worse. The only answer is a serious reduction in State activism: cutting the size of government and its departments, abolishing targets, freeing up public services and charities, axing databases. If a new government can disavow the five techniques outlined here (and learn to live without them) the age of spin will truly be over. But learning to let go will not be easy.

June 12th, 2009

“Green growth” strategy viable for African economy

Posted by: Michael Keating

michael_keating -Michael Keating is director of the Africa Progress Panel. The opinions expressed are his own.-

After a decade of solid progress Africa is now facing the daunting task - at a time of economic crisis - of maintaining stability, economic growth and employment, addressing food security and combating climate change. No country on the continent is escaping the impact of volatile fuel and commodity prices, the drop in global demand and trade.

The global economic crisis, however, is serving as a wake-up call for both African leaders and their international partners. The Africa Progress Panel’s 2009 report, launched Wednesday in Cape Town by panel members Kofi Annan, Graca Machel and Linah Mohohlo, argues just this.

Africa is rich in potential and there is an, often overlooked, opportunity to be seized. More investment is needed in Africa’s real economy, particularly infrastructure, renewable energy, agriculture and communications. The explosion of mobile telephony and spread of financial services to the poor have shown the potential for innovative development models.

There is also an opportunity to set a low carbon growth and development agenda, investing in the Africa’s vast solar, hydro, wind, thermal and biomass resources. A continental “green growth” strategy might attract the financial and technological support of richer countries, not least as Africa can contribute solutions to the global climate change challenge. Investment in such initiatives will not only generate jobs and boost trade in Africa, but also create markets for the world.

To cope with crisis and to seize these opportunities, Africa needs determined and accountable leadership at the national level and concerted presence and negotiation capacity on the global stage. Sceptics see both in short supply and fear that crisis will unravel progress on governance and accountability.

But this does not mean that the rest of the world can walk away. Whilst the primary responsibility rests with African leaders, businesses can play a key role, as can Africa’s trading and donor partners.

Many of Africa’s problems, including financial instability and rising temperatures, have been imported. Her partners share responsibility for tackling them. They also have an interest to do so: social tension and political instability in Africa have clear international costs and consequences. One way they can offer their support is by ensuring that global deals, whether on trade, climate change, health, migration or financial regulation, take Africa’s development needs into account.

Additionally, at a time when other financial flows are faltering, more and more predictable aid can help governments meet urgent social needs and reinforce practical capacities, including to attract investment, strengthen fiscal and accountability systems, including for revenues from the extractive industries.

International organizations can catalyse public-private partnerships to fast forward infrastructure and clean energy projects that create jobs, strengthen market access and intra-regional trade. Governments can also do much more to put policies and incentives in place to encourage entrepreneurship.

While progress depends upon partnerships, shared responsibility and responsible use of revenues, the critical ingredient is leadership. A number of countries, including some emerging from conflict, have shown what is possible. But can these individual examples be replicated? The future of Africa may depend on it.