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Poverty and Development

Poverty in Wales: A Globalized Perspective

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By Aphrael Spindloe

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Poverty in Wales: A Globalized Perspective

When in November 2018 Professor Philip Alston, United Nations Special Rapporteur on extreme poverty and human rights visited the UK, it was a surprise to many in Government (but less so to UK citizens) that he described the extent of UK poverty as ‘not just a disgrace, but a social calamity and an economic disaster, all rolled into one.’ The visit highlighted the extent that poverty has affected the UK, and how Globalization has had its own part to play.

Homeless Tent In Shop Doorway I have been a student at Cardiff university since October 2017, and it is clear that policies such as austerity and universal credit has had a significant impact on citizens’ livelihoods. These policies were implemented after the 2008 recession, an economic crisis which led to the UK Government feeling justified in reducing costs in areas such as welfare, health and education. It has been over ten years now, yet the effect of the crash is still evident to see. Foodbank use is growing at an alarming rate as people struggle to find money for both food and bills (even when they are in a job) and it is normalized to witness a large number of homeless people on the streets; neglected by their government who has failed to provide even the simplest provision of shelter (In Cardiff, the Wallich has seen an 81% increase in rough sleeping between 2013/14 and 2015/16) Even though my generation can hardly remember a time before the crash, we are all very aware that the policies of today are not working. Something must change.

Neoliberal cuts to welfare, the Government’s lack of action in relation to the rise in precarious work such as zero hour contracts and rising prices of goods in all sectors, has meant Wales poorest are living in fear of where their next meal will be, or if they will have to go without food so that they can pay their bills to make sure a roof is over their heads for another month. As we privatize more and more of our services, allowing global businesses to take over and ramp up prices (it has become a usual sight at the beginning of each new year to hear of train fare prices rising, often around the 3.5% mark) we are creating an environment that poor people are unable to survive in without adapting to a life of debt and squalor.

Scare techniques are commonly used by certain media outlets, which are often owned by rich people or individuals who do not live in the UK. They create a demonized view of those on benefits, claiming them to be ‘benefit scroungers’. This should be seen as yet another scapegoat which allow multinational corporations who evade tax to keep on hoarding their money, whilst those in poverty have sanctions put on them for simple acts such as not turning up for a work search review.

Yet poor people are still viewed as the problem.

Multinational corporations are also frequently based in other countries such as America. This means that their employees in other countries become a number rather than an individual with aspirations, friends and family. This, unfortunately, makes firing people much easier. If a corporate giant is told that sales are low in an area, then they could simply make people redundant in order to save money and transfer production to areas where sales are high, such as Honda which is planning to move out of the UK by 2021 (Honda suppliers factory Kasai in Merthyr Tydfil has 200 people supplying both Honda and Nissan, this decision to leave the UK means 200 individuals will now be facing uncertainty about whether they will lose their job or not). It becomes a numbers game and unfortunately the lives of employees become increasingly precarious as individuals are viewed as being part of a dispensable workforce.

It isn’t all doom and gloom, though, there are still plenty of ways that Wales can try and help people out of poverty. Putting pressure on the UK Government to make precarious work such as zero hour contracts illegal would mean everyone in work would end up having a stable income. Raising wages from the minimum wage to the Living Wage would mean people should find themselves in a position to afford Image result for tax evasionbasic necessities such as food, clothes and shelter. Another step to preventing poverty is by ensuring business pay their taxes. This will require global cooperation to prevent them being able to move their money into offshore accounts, and ultimately  both Wales, the UK and the World would become more accountable.

Finally, re-nationalizing is vital and will require cooperation with companies that currently own UK services. One big fear the Government has is that if it forces businesses to do such things as pay tax or give services back to the state, then they will move their service elsewhere; leaving the country derelict. However, if we carry on the way we are, (allowing global corporations to evade tax and the Government to privatize more of our services), then surely people will be unable to give money to these businesses anyway (as they will not be able to afford their products). If this is the case, then there is not much hope that these businesses will be able to stick around anyway.

Overall, both Global cooperation and accountability is key if we are to deal with poverty in Wales. In our transnational world we interact with other countries all of the time. If we wish to help end poverty in Wales, then we must make sure we maintain a strong stance in showing that the UK will not accept low employment standards as being the norm; only when we hold the world to account (just as we should hold our own Government to account also) will we be able to make Wales a place with high standards, stronger job security and independent individuals.

 

Image of ‘Poverty can be eradicated’ by Howard Lake: https://www.flickr.com/photos/howardlake/4103261671

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A ‘globally responsible Wales’ in a global Britain?

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Susie Ventris-Field sets out the elements that should influence Welsh Government’s new international strategy.

Susie Ventris-Field is the Chief Executive of the Welsh Centre for International Affairs.

Brexit is just weeks away. Uncertainty and short-term thinking dominate the political landscape. This is exactly the right time for long-term and inspiring visions of what our future relationship with the world could be and the most important question for a strategy in uncertain times is not what do you want to do, but what do you want to be?

The UK is one of only six countries across the world that spends 0.7% of its gross national income on international aid, a commitment enshrined in law. But there are prominent voices shaping the ‘global Britain’ discussion that push for Britain to pursue its own trade and investment interests, regardless of this pledge and other international obligations and responsibilities. For example, former Foreign Secretary Boris Johnson argued that the 0.7% Britain commits to international aid should be spent on furthering political, commercial and economic interests, including spending on defence.

On the domestic front, Britain was one of the authors of the 1951 Refugee Convention. However, the Windrush scandal, long processing times for asylum applications and the use of detention centres has created a ‘hostile environment’ for those seeking sanctuary on our shores, who are fleeing conflict and persecution.

The ‘hostile environment’ also contributes to challenges for the inward migration that Wales needs. For example, universities are facing financial challenges as numbers of international students drop and NHS staff shortages are increasing. Furthermore, the UK’s Immigration Bill doesn’t account for the differentiated needs of the Welsh economy in terms of inward migration.

Against this backdrop, can Wales use its devolved powers to build upon British foreign and trade policy, differentiating itself as a globally responsible and welcoming nation and bringing out the values and qualities that are important to so many people across the nation?

For the first time, Wales has an International Relations and Welsh Language Minister, Eluned Morgan, who has committed to developing a cross-governmental International Strategy for Wales. Trade and investment will, naturally, be dominant features in such a strategy, as will using soft power to further Welsh interests. However, this policy can and should do more. The minister has stated that she wants the new strategy to be based on strong shared values and rooted in civil society efforts spanning decades. Wales has a history of solidarity, international aid and development and campaigns for peace and justice around the world that can inspire a rounded strategy that defines how the country is perceived on the global stage.

Some examples: historically, we have the Message of Peace and Goodwill from the young people of Wales to the world, about to reach its 100th anniversary; the Peace Appeal where, in 1924, 40% of the women in Wales signed a petition to the women of America so they could lobby the President to join the League of Nations; long-standing links between Wales and Somaliland, Uganda and Lesotho; and the Wales anti-apartheid movement.

More recently, the Wales for Africa programme, established by the Welsh Government because people in Wales wanted to make a unique contribution to international development, is still going strong ten years on. It supports skills-sharing, solidarity and international development efforts that contribute to poverty alleviation. Much of the initiative is driven by local communities in both Wales and Africa, in response to mutual needs.

Wales has also shown outward-looking trends in domestic policy. It has been a Fair Trade Nation for ten years, with people across sectors making purchasing decisions on ethical grounds. Wales will hopefully be the world’s first Nation of Sanctuary as a counterpoint to the ‘hostile environment’. We have a Well-being of Future Generations Act that commits the public sector to be, among other goals, globally responsible and a new curriculum for Wales has a central goal that young people will be ‘ethical informed citizens of Wales and the world’.

So how do these diverse elements come together to influence an international strategy? I can suggest three ways.

First, Wales can build its reputation, showcasing its globally responsible domestic policies, hoping to inspire similar behaviours and learning from the practice of others so we can do even better. This recommendation is echoed in the External Affairs Committee report Wales’ future relationship with Europe and the world, published last week, to use international engagement to demonstrate international leadership.

Second, it is vital that Wales’ international strategy protects and builds on the commitment its people have shown to alleviating poverty, as in the Wales for Africa programme. Within this programme, a more strategic approach may be valuable. For example, given the current size of the budget, the strategy could focus on one thematic area or country and certainly offer more opportunities to build stronger relationships across the third, public and private sectors in programme delivery. What should be avoided when taking a more strategic focus is the dilution or redirection of the programme to enhance trade or for economic self-interest. The reputational benefits conferred to Wales by taking our international responsibilities seriously will make the country a place people want to visit and do business with, as well as meeting the wishes of the public in Wales to make a positive contribution.

Third, some key values should permeate the other aspects of the strategy and drive proactive diplomacy. These should include commitments to sustainability, respect for human rights, tolerance, cooperation, peace and justice.

In practice, there are many ways in which these values could be manifested. As a Fair Trade Nation, we care about ethical trade; we want a green economy. Trade and investment elements of the strategy should reflect these commitments. We should make as much as possible of Wales as a Nation of Sanctuary – a welcoming place that people will want to come to, including students and tourists; the vibrant diaspora and refugee constituents here in Wales, from countries like Somaliland, China and Portugal, have expertise and insight and should be involved regularly for their views.

As well as being the right things to do, these kinds of practical steps will make Wales a more attractive place to do business, and to visit.

Eluned Morgan gave an opening speech in the Senedd that included all the right messages. We are now hopeful that Wales will develop an international strategy for a truly globally responsible Wales.

 

 

Photo by Duangphorn Wiriya on Unsplash