That the Grand Committee takes note of the impact on global democratic norms and values from autocrats, kleptocrats and populists and the case for a coordinated response by the United Kingdom and her allies.
My Lords, I am conscious that we are having this debate on the day that Xi Jinping and Vladimir Putin are, as the Times has reported,
“cementing an alliance to make the world safe for autocrats.”
I am also conscious that we are debating this on the day we hear that the First Minister of Northern Ireland is intent on resigning and possibly paralysing the Government of Northern Ireland, which definitely defeats the democratic intentions of the people of Northern Ireland. But I am confident that by the end of this debate we will be in a position, because of your Lordships’ contributions, to allay the fears of the people of the world in respect of this global alliance, and of the people of Northern Ireland as to how their democracy is not under threat either.
Democracy is in retreat and authoritarianism is on the rise. According to the University of Gothenburg’s V-Dem Institute, non-democratic countries outnumber democracies for the first time in 20 years, and 2021 was the fifth consecutive year in which more nations moved towards authoritarianism than democracy. In December, President Biden convened a virtual summit for democracy around an agenda that challenged authoritarianism and sought to fight corruption and kleptocracy and promote human rights. He said that
“we stand at an inflection point”,
with the future of democracy facing
“sustained and alarming challenges”.
In fact, the V-Dem Democracy Report 2021, which reflects analyses based on an assessment of nearly 30 million data points and aspects of democracy such as the freedom and independence of legislatures, judiciaries, the media and civil society, and human rights, shows the continuing global decline of liberal democracy. Electoral autocracies are still the most common regime type and, along with closed autocracies—ones in which the people are denied elections—they are home to 68% of the world’s population.
My Lords, I hope that we are not going to deteriorate into a sort of two-party or three-party squabble, because the Question that the noble Lord has put on the agenda is a fundamental one in European and wider terms. In 1979, Jim Callaghan noted that the age of post-war consensus politics was coming to an end. He probably did not realise how true the words that he spoke were. Today we have not only a very unsatisfactory democracy for those of us who grew up in the immediate post-war world but one that is largely underwritten by the population. This is something quite new.
I spent most of my active political career travelling around the world in many different guises and visiting other countries with many different forms of democracy. When I started in 1979, most of them at least subscribed to the idea that they were doing the best for their people. But by the end of that era, where we are now, we have not only a situation that is quite unsatisfactory but, I put it to your Lordships, a system that has far more support from the grass roots than we should be happy with.
I spent 20 years in the European Parliament as its rapporteur on Turkey. I saw it from the rule of General Evren and the colonels right through to the present President, Mr Erdoğan, who was Prime Minister when I finished. We may not like it, but we have to accept that Erdoğan has won all the elections that he has stood in. They have all been observed by Council of Europe and OSCE delegations and been passed as, on balance, acceptable. The people of Turkey have consistently voted for the policies that their President has wished on them, even though most of those policies are a big abnegation of anything that we could call democracy.
The same can be seen in other countries. My son studied in Moscow. I visited Moscow around the time of the Crimea incident, among other times. It was clear that the Russian population were overwhelmingly behind Putin, and they still are. He still has a roughly 60% positive rating, which is something that Keir Starmer or Johnson can only dream about.
My Lords, I say to the noble Lord, Lord Balfe, that we have to say something about the UK’s standing as a democracy because that affects our ability to respond to the current situation. We all agree that we face a global push-back against democracy and the rule of law. It is led by China and Russia, supported by the central Asian states that emerged from the USSR, and now also by Turkey, with governing parties in two EU members, Hungary and Poland, drifting into that camp.
I want to stress the role that Middle East autocracies are actively playing in this development. We have seen the wealthy Governments of the UAE and Saudi Arabia actively working to suppress the democratic efforts of the Arab spring, supporting the military coup in Egypt, funding anti-democratic forces in Libya, helping to undermine democracy in Tunisia and contributing almost as much as Iran and Israel to the destabilisation of Lebanon. Their elites also penetrate open democracies such as the UK, employing PR companies and buying football clubs to bolster their reputations. They buy mansions and country estates and gain acceptance within our political and social elites. The current rise in energy prices will increase their ability to extend their influence through societies like ours.
The global reputation of democratic government has been shaken by recent events in the United States and Britain. The American Republican Party, which some in our Conservative Party still see as a model they wish to follow, is engaged in voter suppression and election-fixing. Here, we have a Prime Minister who has broken the Ministerial Code on numerous occasions and stretched the boundaries of reasoned debate, respect for opposition and the rule of law.
The Lords will shortly be scrutinising the Elections Bill—it was originally entitled the election integrity Bill but has now dropped the claim to integrity—which has been designed to tilt our democracy further in favour of the Conservative Party. That will be followed by the Higher Education (Freedom of Speech) Bill, an almost direct copy of Republican efforts within the United States, which is intended to extend state influence over university teaching and appointments.
My Lords, the last century, the one in which many Members of your Lordships’ House spent most of their lives, opened with a world dominated by empires and autocracies, and with true democracies very much in a minority. The century closed with democracies in the ascendant, the empires largely gone and something close to a rules-based international order having emerged from the ashes of two world wars and one long Cold War. Any complacency that that progress might have engendered has long since dissipated, with several autocracies or quasi-autocracies prominent, and with the rules-based order under threat, from within as well as from outside, as supporters of unfettered national sovereignty espouse policies that are inconsistent with their countries’ obligations under international law. So, today’s debate is timely and I warmly welcome the initiative of the noble Lord, Lord Browne of Ladyton, in securing it, and his excellent introductory speech.
What needs to be done to check the trends of the last few years and to secure what was once described as
“a world safe for democracy”?
First, we need to ensure that our own democracies are in good working order and that they are promoting, in practice as well as in rhetoric, policies that strengthen other democracies worldwide and further respect for human rights, as laid out in the UN’s Universal Declaration of Human Rights in 1948. We also need to ensure that our democracies encourage effective international co-operation to address the great challenges of our time: climate change, pandemics, the risks of nuclear proliferation and war, and trade protectionism. That will not be the work of one year or of one Government. It will require concerted effort over decades, and it is not happening—yet, at least.
Should this effort involve a more or less formal grouping of democracies? I rather doubt whether that is the right direction in which we or others should be moving. Such a grouping would raise plenty of problems—first, what is described as the “sheep and goats” problem. How do you decide, and who decides, which countries are truly democratic sheep and which are undemocratic goats? It is not easy, and certain to lead to many difficulties over borderline cases. Moreover, while such a grouping can apply policies and make rules for its own members, it cannot hope to make such policies and rules binding on others. Where globally applicable rules are needed, as with the global challenges that I mentioned earlier, this grouping will simply not be able to deliver the goods.
In following the noble Lord, I very much agree with him that we should refer ourselves back to the creation of the United Nations, the World Bank, the IMF and the other institutions. Indeed, the Motion refers to co-ordination, which is a very important point.
I move on to sub-Saharan Africa, where there is a quarter of the world’s poorest countries. It seems a very good example of the struggles to arrive at a proper understanding of the norms and values of democracy. It has been said, and I think it is right, that the best thing about democracy is that it enables you to change your Government without violence. In sub-Saharan Africa, that is by no means universally the case. Another thing that one could say is that some countries that have been mentioned today, including our own, have arrived at an understanding of the norms and values of democracy and are now being accused of backsliding—what you might call the Capitol syndrome. But many other countries have never got there. It is important that we think differently about the countries that have never got to the point where they had regimes that respected the norms and values of democracy.
When one thinks about sub-Saharan Africa, one is looking for something positive—that is to say, what are we going to do about it? Do we have any responsibility to do anything? If so, what will we do? Of course, that takes one back to the international organisations. In reading about the World Bank’s operations in sub-Saharan Africa, I get the impression that it is rather tired. It is not the World Bank I remember from 20 or 30 years ago.
The positives we need to find are headed by economic development. We know that if you want to have a reasonable regime, it is important to be able to collect some taxes and to have some public expenditure. If your economy simply does not support that approach, you are not very far along the road to having an acceptable regime. In thinking about acceptable regimes, it is risky to assume that the default position is our understanding of democracy. All the evidence shows that this is not the case and that there may be many other ways in which people will continue to think about their politics and their regime that do not conform to our understanding of the norms and values of democracy. We have to approach all this rather cautiously.
My Lords, the speaking time for Back-Benchers is five minutes. If we go over that, we will cut into the time that the Minister has to respond, so can we please keep an eye on the clock?
My Lords, Bain & Company presents itself as a reputable global consultancy operating across the world, with an office in London and recent contracts worth £55 million with the Cabinet Office alone. Yet in South Africa, Bain brazenly assisted former President Jacob Zuma to organise his decade of shameless looting and corruption, with the company earning fat fees estimated at £100 million—or 2 billion rand—from state institutions.
South Africa’s State Capture Commission, a judicial inquiry headed by Deputy Chief Justice Zondo, indicted Bain’s work with the South African Revenue Service as “unlawful” and recommended that all its South African public sector contracts be re-examined with a view to prosecution. At the time, Bain South Africa’s work was endorsed by both its London office and its US headquarters in Boston. Bain has also been disgracefully smearing Mr Athol Williams, a key whistle-blower praised by the Zondo commission who recently had to flee to the UK for his safety.
Given the scandalous collusion of Bain UK and Bain USA. I am asking that the UK Government and the US Government immediately suspend all government contracts with Bain. I wrote three weeks ago to the Prime Minister requesting this, and he has just replied stating that the Cabinet Office will
“look into this matter with urgency”
and the Chancellor of the Duchy of Lancaster wrote to me yesterday saying that the Government will be contacting Bain. I hope that those contracts will be suspended and that that is the case for all public sector contracts in the UK.
However, Bain’s shamefully shady behaviour is just the tip of the iceberg. The prodigious looting, corruption and money laundering under former President Zuma would not have been possible without the complicity of Bain, KPMG, McKinsey, SAP, Hogan Lovells and the banks HSBC, Standard Chartered and Bank of Baroda. Those fee-clutching global corporates and turn-a-blind-eye Governments from London and Washington to Dubai, Delhi and Beijing helped to rob South African taxpayers, contributing to a catastrophic loss of South Africa’s GDP of around one-fifth. Economists estimate the full cost of the Zuma state capture to be a monumental £750 million or 1.5 trillion rand. The Government’s total annual expenditure is just 2 trillion rand annually. These global corporates all obtained sweetheart state contracts, which helped Zuma’s business associates, the Gupta brothers, to loot the state. Global banks such as HSBC, Standard Chartered and Baroda transferred this looted money through their digital pipelines to less regulated jurisdictions such as Dubai and Hong Kong, or British Overseas Territories in the Caribbean, to then clean the money by mingling it with other funds, disguising its origins and enabling it to be more easily spent.
My Lords, I congratulate the noble Lord, Lord Browne, on mounting this debate. He has been absolutely tireless in promoting more international co-operation and co-ordination on all the really existential issues threatening the world in an extremely dangerous time for us all. This debate is a marvellous further step in that direction.
I also agree with my noble friend Lord Balfe that we need to start on this question of defeating the autocracies by looking at and repairing our own weaknesses in democracy. I agree with most of what the noble Lord, Lord Hannay, said on the same theme. I think I was a bit naive in agreeing with my noble friend Lord Balfe that there was going to be a non-partisan approach to these totally new issues, but I am afraid that was soon disabused. Maybe my naivety will have to be put aside.
We have to know what the weaknesses in the democratic pattern are in this digital age. About a year ago, the Cambridge Centre for the Future of Democracy produced an extensive and extremely alarming report examining the views of millennials and Generation X—the people born after 1990—who, by a large majority, delivered the view that they were losing faith in democracy. I think it was rather a general question. They did not really mean that they were against democracy; what they meant was that the systems of democracy that are around are not delivering for these people in the way that perhaps they did for my generation and those in between.
I therefore think we have to be ready to move outside the old western camp view of thinking and maybe search into Asia where, frankly, all the great growth, all the booming economies and possibly all the biggest dangers will be over the next 10 or 20 years, and see what additional lessons we can learn in a world that is no longer ideological in the old Cold War language, with neat ideological divides between the systems and so on. I do not think the world is at all like the sort of thing that George Soros was wrongly stating the other day, with two economic systems lined up against each other. The reality is that the economic, social and therefore political mixtures ahead, in all continents, will turn out to conform neither to the isms of the past nor to the clichés of 20th-century European political discourse.
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The data shows a drift of democratic backsliding engulfing 25 nations, or one-third of the world’s population. G20 nations such as Brazil, India, Turkey and the USA are part of that drift. Poland wins the shameful title of the country which declined the most during the past decade. I am confounded by that, given the history of Poland.
The process of decline follows a predictable pattern. Once elected—fairly or, more likely, after some manipulation of the electoral process—autocrats tend, if possible, to quickly remove the time limits on their term of office. They maintain power through centralised control of information and resources; political opposition is either forbidden or strongly curtailed; and individual freedom is limited by the state. First, they attack and repress the media and civil society and polarise societies by disrespecting opponents and spreading false information. Then, they undermine elections.
Dominant party authoritarian regimes exploit Western legal and financial systems against Western media where it is critical of their regimes. They sue the media, or they buy it. Russian companies have acquired large ownership stakes in foreign media companies and influenced their operations. They have engaged in disinformation campaigns that exploit weakness in our freedom of speech protections.
It is now common knowledge that Russian-controlled agencies and businesses played a strategically vital role in interference in the US 2016 presidential election, showing that it is possible to interfere destructively in the most powerful Western democracy. The ISC Russia report found credible open-source commentary suggesting that Russia undertook influence campaigns during the Scottish independence referendum. Although accepting that the evidence about the EU referendum campaign was less clear-cut, the committee recommended that the UK intelligence community produce and publish an assessment of possible Russian interference in the EU referendum to reassure the public that our democratic processes are safe. I should like to see that reassurance.
Rule by thieves arises when a country’s elite begins systematically to steal from public funds on a vast scale. Undermining democracy and the legal system, it gains control over vital economic assets and amasses substantial wealth. No longer is kleptocracy a corrupt political system in a few poor nations. It is a global network, with members including world leaders and powerful businesspeople. Assisted by corrupt professionals with the expertise to launder their wealth through a maze of shell companies, they secure it in luxury assets in the West or in our banks. According to the IMF, as much of 5% of the world’s GDP is laundered money and only 1% of it is ever spotted.
Collectively, developing countries have lost $16.3 trillion to elicit leakages since 1980. Their people struggle, they starve, they die, while their Governments export the country’s wealth and become net creditors to the world’s economy. Some of the money is hidden right here. Prime UK properties provide an attractive conduit for securing and legitimising the laundered funds. Despite much rhetoric, progress on paper and repeated parliamentary calls for change, the UK remains a haven for dirty money, a great deal of which comes from Russia and Eurasia.
It is not just money that is laundered but reputations as well. Family and key friends and allies of the thieves merge into our UK society at the very highest level. Some acquire British citizenship following receipt of a “golden visa”. Settled here, they donate to charities, threaten journalists with legal actions and make political connections and political donations. The Government have failed adequately to address this problem and, in the meantime, the provision of services by British professionals to kleptocrats corrupts our world-leading financial services and corrupts and undermines the famous efficiency of our legal system. Worse, it degrades our international reputation as a beacon of democracy and honesty.
The Government placed combating serious organised crime at the centre of their foreign policy but seem not to recognise the intimate connections that UK society and institutions have with kleptocratic states and their elites, who continue to find a welcome in London. The number of times that parliamentarians have drawn attention to this issue in reports, debates and Questions are too numerous to list. Yesterday, the Treasury Select Committee published but the latest example. In its report Economic Crime, one paragraph says it all. I refer to paragraph 230, which I will read short in the interests of time:
“Reform of Companies House is essential if UK companies are no longer to be used to launder money and conduct economic crime.”
It says that there is change:
“However, the pace of change is slow. The problems with UK company structures were identified by the Government in 2014 in the UK Anti-Corruption Plan. While there have been welcome innovations, such as the People with Significant Control register, on current plans it will have taken over 10 years to improve matters, during which time a large number of UK companies may have been put to criminal use by a wide range of criminals.”
I qualify that, on my part but not on behalf of the committee, by saying that companies have been used in a criminal way by a wide range of criminals, including kleptocrats.
In Europe alone, populist politicians have recently risen to power in the Czech Republic, Hungary and Poland and have gained momentum in France, Spain, here and elsewhere. In Hungary and Poland, this has been accompanied by an erosion of the rule of law, democratic backsliding, greater authoritarianism and an increase in the persecution of minorities. In the words of Jan Kubik from UCL, contrary to Viktor Orbán’s rhetoric, there is no such thing as an illiberal democracy.
Populist parties and politicians divide societies into “the people versus the corrupt elite” and argue that politics should express the general will of the people. By “the people” they mean their people. They erode the informal norms of democracy, question the loyalty of the opposition and decry criticism as fake news. As winners of democratic elections, they fail to constrain themselves and instead hollow out and politicise formal institutions of that democracy. They undermine formal institutions such as the courts, legislatures and regulatory agencies as creations of a “corrupt elite”. Rather than tolerating a free press and political opposition, instead they try to undermine their legitimacy and, most insidiously, they redefine “the people” by excluding vulnerable ethnic or religious minorities, immigrants and marginalised economic groups. The result is majority rule without minority rights. Mainstream political parties, the backbone of representative democracy, have so far largely failed to address these threats and some centre-right parties have become populist instead.
In his remarks at the Biden summit, Boris Johnson announced that we in the UK
“are working with our friends to ensure that”
we are using
“emerging technologies … designed to safeguard our shared values”,
helping
“developing countries to build clean and green infrastructure with transparent projects, that are open to scrutiny”
and deploying new
“national sanctions to target those responsible for … human rights violations.”
Further, he promised in the “Year of Action” to
“take even stronger measures against the illicit finance that undermines democracy everywhere, strengthening our … powers to go after the criminals who”
exploit our lax corporate structures, bringing
“openness to the purchase of properties in the UK”
and taking forward
“new laws to safeguard our democratic processes and institutions from those who would do us harm.”
As the RUSI report makes clear,
“2022 has the potential to be an impressive year of action for the UK. But it requires the prime minister to acknowledge the UK’s global illicit finance responsibilities and reverse his current irresponsible disinterest in a topic that—as it does the US—threatens the UK’s national security interests.”
It also requires our Prime Minister candidly to accept that, if democracy is to begin at home, this requires more self-awareness than hitherto he has been capable of. If he genuinely wishes to be seen as a global leader for democracy, he needs to be clear that he and his Government are learning lessons too.
During his time in office, our Prime Minister has progressively degraded norms and standards, such as with the unlawful Prorogation of Parliament and the failure to dismiss the Home Secretary for bullying, to name but two examples. It seems that this Government are still on course to assault our democracy. We need look no further than our present and upcoming parliamentary business: an election Bill that affronts the right to vote, a policing Bill that sought to criminalise protests and a Nationality and Borders Bill that has been described as stripping British citizenship with the stroke of a pen.
What is more, this Government appear set on limiting the courts’ power to hold public bodies to account through judicial review and intent on tearing up the Human Rights Act and placing legal constraints on whistleblowing and journalism—and all this against a background where the Government whipped their vote through Parliament to support a Motion that ripped up parliamentary standards in a doomed attempt to save the disgraced MP Owen Paterson, who had lobbied for companies that paid him hundreds of thousands of pounds. The reality is that our Prime Minister has presided over a culture of corruption and clientelism. What other words are there to describe a politics in which political donors are given privileged access to a VIP lane for lucrative Covid contracts? I have but one question for the Minister, whom I admire greatly, as I know do many of your Lordships: what is the plan of action for the year of action? I cannot find one anywhere in government documents.
My point is that it is fine for us to feel unhappy about the decline in democracy, and I indeed do. I share a lot of the reservations the noble Lord, Lord Browne, mentioned but I also think that we need to look beyond where we are and see why it has come about. I think one of the reasons is the genuine collapse in confidence of ordinary people that politicians can make a difference to their lives. That is probably the thing we need to direct our attention to.
Politics has become far too professional. I remember when I came into politics in the 60s—this was after 1966—they used to say we have 300 members of the parliamentary Labour Party, 100 of them are totally unfit for office, another 100 do not want office so that gives us 100 people from whom to fill 80 ministerial posts. If you look back, Ministers lasted a long time. Now, virtually everybody in Parliament is capable of being a Minister, but I am not sure that they are capable of relating to the people who elect them to this building.
There is a fundamental challenge. I do not think it is a clash between two parties; it is a challenge for us to get our act together and start building democracy back and promoting the values on which it is based.
Populist Ministers in our Government repeatedly attack the BBC for its failure to present the government line uncritically. The Prime Minister loves to talk about Britain as a “soft power superpower”. I remind the Minister that the integrated security strategy published a year ago noted five key elements of British soft power as the BBC, the global reputation of our universities, the generosity of our international development efforts, the work of the British Council and the strength of our cultural sector. All have been undermined since then by government decisions and ministerial attacks.
Our populist Prime Minister loves to talk of Britain “leading” a group of democratic nations across the world. Sadly, we are in no position to lead the democratic world now. A glance at overseas media across continental Europe, south Asia and North America shows that the political antics of recent years have replaced respect with ridicule. I sympathise with the Minister, who must of course defend the Government; he is somewhat better than this, but he will be painfully aware of the damage that current events have done to Britain’s global reputation.
However, at least we can do something to reduce the penetration of British politics, society and business by kleptocrats from authoritarian states. One of the most disturbing statements in the Intelligence and Security Committee’s Russia report, in paragraphs 50 and 53, was that the integration of post-Soviet oligarchs into
“the UK business and social scene … cannot be untangled, and the priority now must be to mitigate the risk”.
Boris Johnson’s attempts to downgrade and delay government action in response to the recommendations of the Russia report are one of the most disgraceful aspects of his premiership.
Priority in the next parliamentary Session must be given at last to the economic crime Bill and revision of our outdated Official Secrets Act. I hope also that the Government will accept the amendment I have tabled to the Nationality and Borders Bill to suspend the tier 1 investor visa scheme, which has allowed oligarchs to import corruption into the UK and buy access to the top of the Conservative Party. Such changes will reduce the damage that has been inflicted on Britain by corrupt and hostile foreign influences. But other changes will be needed to restore our damaged global reputation as a democratic, open society.
So, while it is right for democracies to work very closely together, I also suggest that they would best do so within global institutions, many of which already exist, even if their efforts are so far inadequate. Yes, we ourselves should be working to strengthen other democracies and working with regional bodies such as the European Union and the African Union, which are mandated by their founding charters to uphold democracy; but we should not regard democracy as something to be imposed by force nor, conversely, as in the case of Taiwan, to be reversed by force.
Those global institutions I referred to may not be working very effectively, but should they be replaced by something different? In my view, that would be an act of folly. Is there really any likelihood that they would be replaced by something better? Just read the UN charter, if you want an example, and ask yourself whether that document could be negotiated today. More likely, the world would slip back into the law of the jungle which prevailed in the first half of the 20th century and from which it had to be rescued by the democracies, with the expenditure of much blood and treasure and massive human suffering. What is needed, surely, are policies of incremental reform, which will make those global institutions more fit for purpose. I hope that our own country will play a prominent role in shaping the reforms needed, as we did with honour in the past, and that we will act by example and not just by assertion.
I have to say that some of the legislation that has come before your Lordships’ House in recent years—the internal market Act, the external operations Act and the Bill before the House this afternoon on frontiers and border protection—is inconsistent with our obligations under international law. The Minister can stand at the Dispatch Box and say that this Parliament is sovereign and can change these things if it wishes, and that is correct—but another Minister cannot succeed that Minister at the Dispatch Box and say that we are the great supporters of the rules-based international order.
I want to cite two examples in sub-Saharan Africa: Burundi and Cameroon. They were both brought under German colonial control in 1884. At the end of the First World War, they were both taken away from Germany and, by a co-ordinated effort of the League of Nations, one became Belgian and one a mixture of French and English. We now have virtually no relationship with Burundi, but we have a sanctions regime. It seems to me that to apply a sanctions regime to Burundi, which is similar to that we might apply to Russia, does not make any sense. I think the British Government have forgotten Burundi. On Cameroon, I have just one last sentence: there is conflict there, again created to quite a large extent by the League of Nations decision after the First World War and by independence and what happened in 1971. I think our Government’s reaction is that Cameroon is too complicated for us to have an opinion about what should be done there. After Brexit, we now need some opinions about what needs to be done in sub-Saharan Africa.
Lawyers and accountants assisted the Guptas to set up complex shell, or front, companies, hiding their true owners—the Guptas or their associates—and enabling money to be moved to a country where there is low transparency. Dishonest audits left suspicious transactions hidden. Estate agents received laundered money during Gupta property purchases. Global brand names from KPMG to McKinsey, from HSBC to Standard Chartered, all profited while the Guptas hid and spent their stolen funds that could otherwise have been destined for essential South African public services, job creation or infrastructure, leaving South Africa’s public finances near-bankrupted and its growth stalled.
I therefore find it completely unacceptable that Bain is licensed to operate commercially in the UK, the USA or anywhere else in the world—at least until it has repaid all its fees earned from the South African state during the Zuma-Gupta years and answered charges in the courts there. Unless the UK, US, Chinese, Indian and UAE Governments co-operate with each other, state capture will happen again, either in South Africa or other countries.
The truth is that international criminals continue to loot and money-launder with impunity through centres such as London, New York, Hong Kong, Delhi and Dubai. Ministers talk the talk on corruption but refuse to take the necessary tough action against guilty big corporations to stop it. Meanwhile, financial crime is estimated by the United Nations Office on Drugs and Crime, to be worth around 5% of global GDP, or $2 trillion, each and every year.
Just as what we continue to call democracy in the West seems to many people not very democratic at all, so what the Chinese, for instance, call socialism is really not very socialist either. Wise leaders should avoid attaching the old ideological labels to either of these models and recognise instead that revolutionary technology has fundamentally changed the behaviour of individuals to one another, of businesses to one another, of economies and of nations. A new kind of populist connectivity is pushing its way through just about everywhere, regardless of the doctrines and labels to which officials continue to cling.
I was particularly supportive of the concept advanced by the Foreign Secretary, Elizabeth Truss, when she talked about the need for understanding the world in terms of networks, and in particular a “network of liberty” of like-minded countries broadly dedicated—not always succeeding—to democratic values in lining up a security and defence chain, as it were, against the outright flouters of democracy, which are obviously to be found in Moscow and Beijing. This is the new pattern, which I think we have to apply our minds to.
I would like to see a prize awarded to the genius in the vanguard of thinking who can come up with a new language to explain to, inspire and guide confused millennials and the younger generation just about everywhere. Just as our forefathers invented the words “capitalism” and “socialism” only a couple of centuries ago to describe the new industrial world emerging, so we need the same inventiveness to describe the digital world that has replaced it. It is a challenge for thinkers and leaders in both East and West.