Chapter 02: Britain's Political Development PDF

2 Britain Joel Krieger SECTION 1 The Making of the Modern British State SECTION 2 Political Economy and Development...

2 Britain Joel Krieger SECTION 1 The Making of the Modern British State SECTION 2 Political Economy and Development SECTION 3 Governance and Policy-Making SECTION 4 Representation and Participation SECTION 5 British Politics in Transition Photo by Dan Kitwood/Getty Images Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  Official Name: United Kingdom of Great Britain and Northern Ireland Location: Western Europe Capital City: London Population (2010): 60.8 million Size: 244,820 sq. km.; slightly smaller than Oregon Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  CHRONOLOGY of Modern Britain’s Political Development 1832 Reform Act expands 1945–1979 voting rights Establishment of British 1914–1918 welfare state; World War I dismantling of British Empire 1650 1700 1750 1800 1900 1940 1950 1688 1939–1945 Glorious Revolution World War II establishes power of Parliament 1929–1939 Great Depression ca. 1750 1837–1901 Industrial Revolution Reign of Queen Victoria; height begins in Britain of British Empire THE MAKING OF THE MODERN SECTION 1 BRITISH STATE Focus Questions Politics in Action Is Britain’s geography When the financial bubble in the U.S. housing market burst in fall 2008, the global still its destiny? economy teetered on the brink of collapse. Since then, financial markets have stabi- How does its history of lized, and the global economy has begun gradually to recover lost ground. But the empire still shape British scars of the great recession are far from healed. In October 2010, there were sustained politics today? and massive demonstrations in France involving millions of people of all ages who Why did an electoral turned out weekly for over a month to protest a government plan to increase the age at system designed to which people could begin to collect pensions. Public sector workers and many French produce a stable single- from every sector of the economy and every age cohort joined the effort to preserve party majority result in a Conservative–Liberal the rights of pensioners. coalition government in Meanwhile, in the UK, pundits ridiculed the French for taking to the streets in 2010? protest over minor adjustments in pensions, while the British were faced with far What are the greatest more significant austerity measures—a 20 percent reduction in public spending, half challenges facing Britain a million public sector jobs cut, a three-strikes-and-you’re out plan for pressuring today? the unemployed to accept job offers or face a cut off of benefits, the elimination of child benefits for middle-class families, which had been a mainstay of the British wel- fare state for generations, and sharp increases in college tuition (traditionally low by American standards and subsidized by the government). The British had lampooned the French for their willingness to rampage at the drop of a hat and took pride in the British “stiff upper lip”—their ability to recognize that the 2008 recession had far-reaching repercussions, the government could no longer buy its way out of the slump, and they might just as well take adversity and austerity in stride. They would go about their business and give the benefit of the doubt to the Conservative–Liberal coalition government, which had taken office just six months earlier in May 2010, promising the tough medicine that the country was now being forced to swallow. Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  1979–1990 1997–2007 2007 Prime Minister Prime Minister Tony Gordon Brown becomes prime Margaret Thatcher Blair and Chancellor minister and promises to renew the promotes “enterprise Gordon Brown party and the nation, but quickly culture” lead New Labour in loses support and credibility as the government financial crisis deepens 1970 1990 1995 2000 2005 2010 2010 New Conservative–Liberal coalition government formed 2001 1973 Under Blair’s leadership, Britain Britain joins the “stands shoulder to shoulder” with European Community America in war against terror Photo by Dan Kitwood/Getty Images Photo of riots outside parliament, while inside the vote to triple tuition fees takes place. By November, however, the tables had turned: The French government had pressed ahead with its plan to cut pensions, despite protests, and France was no longer in turmoil. In Britain however, the cuts were beginning to bite hard; and increasingly restive and angry citizens, led by students who were angry at tuition hikes, were act- ing positively French. In December, while Parliament debated a tuition fees bill, thousands protested in the streets and when the worst came to pass—Parliament tripled the tuition fees— resentment boiled over into mayhem. Protesters battled police, red paint was thrown at a statue of Winston Churchill, Conservative Party headquarters was attacked, and angry protesters assaulted a car in which Prince Charles was riding, shouting insults at the prince. And in comparison to Nick Clegg, leader of the Liberal Democrats, deputy Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  48 CHAPTER 2 Britain prime minister, and junior coalition partner with David Cameron, Prince Charles got off lightly. The worst vitriol was reserved for Clegg, the more progressive coalition partner who was expected to counter-balance the Conservatives on social protections and civil liberties and who had promised during the election campaign not to increase fees. This high-profile flip-flop on tuition fees severely damaged Clegg’s reputation and credibility and may also have farther-reaching consequences, since it represents an important fissure in the coalition government and may fuel doubts about the strength and stability of the government in an electorate which is not used to—and uneasy about—coalition government. Geographic Setting Britain is the largest of the British Isles, a group of islands off the northwest coast of Europe that encompasses England, Scotland, and Wales. The second-largest island includes Northern Ireland and the independent Republic of Ireland. The term Great Britain includes England, Wales, and Scotland, but not Northern Ireland. We use the term Britain as shorthand for the United Kingdom of Great Britain and Northern Ireland. Covering an area of approximately 94,000 square miles, Britain is roughly two- thirds the area of Japan, or approximately half the area of France. In 2007, the British population was 60.8 million (see Table 2.1). As an island off the shore of Europe, Britain was for centuries less subject to inva- sion and conquest than its continental counterparts. This gave the country a sense of security. This separation has also made many Britons feel they are both apart from and a part of Europe. This feeling complicates relations with Britain’s EU partners even today. Britain: Ethnicity Britain: Religion Not stated 7.8% Muslim 2.8% Other 1.7% Mixed Hindu Pakistani 1.2% No religion 1.0% 1.3% 15.1% English Other White Northern Irish 77.0% 1.6% 92.1% 2.7% Indian Christian 1.8% (Anglican, Roman,Catholic, Black Welsh Presbyterian, 2.0% 4.5% Methodist) 71.8% Scottish 7.9% British Currency Pound (£) International Designation: GBP Exchange Rate (2010): US$1 =.6388 GBP © Ben Molyneux/Alamy 50 GBP Note Design: Queen Elizabeth II (1926–) FIGURE 2.1 The British Nation at a Glance Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  SECTION 1 The Making of the Modern British State 49 Britain Shetland Islands 0 100 Miles 0 100 Kilometers Orkney Islands es rid Heb Outer des SCOTLAND ebri H er North Sea Inn Edinburgh NORTHERN Glasgow IRELAND Belfast Isle of Man Irish Sea REPUBLIC Manchester Isle of Liverpool OF Dublin Anglesey IRELAND ENGLAND ES Birmingham WAL Th am es Cardiff Bristol London Chunnel Southampton © Cengage Learning Isle of Wight ATLANTIC Plymouth OCEAN English Channel FRANCE Critical Junctures History greatly influences contemporary politics in very important ways. Once in place, institutions leave powerful legacies. Issues left unresolved in one period may create problems for the future. The consolidation of the British state unified several kingdoms. After Duke William of Normandy defeated the English in the Battle of Hastings in 1066, the Norman monarchy eventually extended its authority throughout the British Isles, except for Scotland. In the sixteenth century, legislation unified England and Wales legally, politi- cally, and administratively. In 1603, James VI of Scotland ascended the English throne as James I. Although they had the same kings, Scotland and England remained separate Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  50 CHAPTER 2 Britain Table 2.1 Political Organization Political System Parliamentary democracy, constitutional monarchy. Regime History Long constitutional history, origins subject to interpretation, usually dated from the seventeenth century or earlier. Administrative Unitary state with fusion of powers. UK parliament has supreme legislative, Structure executive, and judicial authority. Limited powers have been transferred to representative bodies in Scotland, Wales, and Northern Ireland. Executive Prime minister (PM), answerable to House of Commons, subject to collective responsibility of the cabinet; member of Parliament who is leader of party or coalition that can control a majority in Commons (normally a single party but since 2010 as a two-party coalition (Conservative–Liberal Democrat)). Legislature Bicameral. House of Commons elected by single-member plurality system. Main legislative powers: to pass laws, provide for finance, scrutinize public administration and government policy. House of Lords, unelected upper house: limited powers to delay enactment of legislation and to recommend revisions; Since 2009, the judicial functions of parliament were transferred to the UK Supreme Court. Recent reforms eliminated voting rights for most hereditary peers. Judiciary Independent but with no power to judge the constitutionality of legislation or governmental conduct. UK Supreme Court, established in 2009, is final court of appeal for all UK civil cases and criminal cases in England, Wales, and Northern Ireland. Party System Two-party dominant, with regional variation. Principal parties: Labour and Conservative; a center party (Liberal Democrat); and national parties in Scotland, Wales, and Northern Ireland. kingdoms, until the Act of Union of 1707. After that, a common Parliament of Great Britain replaced the two separate parliaments of Scotland and of England and Wales. Royal control increased after 1066, but the conduct of King John (1199–1216) fuelled opposition from feudal barons. In 1215, they forced him to consent to a series of concessions that protected feudal landowners from abuses of royal power. These restric- tions were embodied in the Magna Carta, a historic statement of the rights of a political community against the monarchical state. It has served as the inspiration for constitu- tions around the world that contain protections for citizens and groups from the arbi- trary exercise of state power. In 1236, the term Parliament was first used officially for the gathering of feudal barons summoned by the king whenever he required their consent to special taxes. By the fifteenth century, Parliament had gained the right to make laws. The Seventeenth-Century Settlement By the sixteenth and seventeenth centuries Britain was embroiled in a complex interplay of religious conflicts, national rivalries, and struggles between rulers and Parliament. These conflicts erupted in the civil wars of the 1640s and later forced the removal of James II in 1688. This was the last successful revolution in British history. Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  SECTION 1 The Making of the Modern British State 51 The UK later came to be seen as a model of domestic peace and stability, but this was hardly predictable during the violent internal conflicts of the seventeenth century. This “Glorious Revolution” of 1688 also resolved long-standing religious conflict. The replacement of the Roman Catholic James II by the Protestant William and Mary ensured the dominance of the Church of England (or Anglican Church). To this day, the Church of England remains the established (official) church. By about 1700, a basic form of parliamentary democracy had emerged. The Industrial Revolution and the British Empire The Industrial Revolution from the mid-eighteenth century onward involved rapid expansion of manufacturing production and technological innovation. It also led to vast Industrial Revolution social and economic changes and created pressures to make the country more demo- A period of rapid and cratic. Britain’s competitive edge also dominated the international order. The Industrial destabilizing social, Revolution transformed the British state and changed forever the British way of life. economic, and political changes caused by the Despite a gradually improving standard of living throughout the English popula- introduction of large-scale tion in general, industrialization often disrupted lives and shattered old ways of life. factory production, origi- Many field laborers lost their jobs, and many small landholders were squeezed off the nating in England in the land. Industrial machinery undermined the status of skilled craft workers, made them middle of the eighteenth poor, and placed them on the margins of society. century. The British Empire Britain relied on imported raw materials, and by 1800, it sold hegemonic power the vast majority of finished goods overseas. Growth depended on foreign markets— A state that can control not domestic consumption. This export orientation made economic growth much the pattern of alliances faster than an exclusively domestic orientation would have allowed. and terms of the inter- national order and often Because Britain needed overseas trade, its leaders worked aggressively to secure shapes domestic political markets and expand the empire. Backed by the British navy, international trade made developments in countries England the dominant military and economic world power. Britain led the alliance throughout the world. that toppled Napoleon in the early nineteenth century, thus enabling the country to maintain its dominant position in the world of states. By 1870, British trade represented nearly one- quarter of the world total (see Table 2.2). By 1900 Queen Victoria (1837–1901) ruled an empire that included 25 percent of the world’s population. Table 2.2 World Trade and Relative Britain exercised direct colonial rule over 50 coun- tries, including India and Nigeria. Britain also dom- Labor Productivity inated an extensive economic empire—a worldwide Proportion of Relative Labor network of independent states, including China, World Trade (%) Productivity* (%) Iran, and Brazil. Britain ruled as a hegemonic power, controlling alliances and the international 1870 24.0 1.63 economic order and shaping domestic political developments in countries throughout the world. 1890 18.5 1.45 Britain’s global power spurred industrial growth at home, and because domestic industry depended 1913 14.1 1.15 on world markets, the government projected British 1938 14.0 0.92 interests overseas as forcefully as possible. * As compared with the average rate of productivity in other members of the world economy. Industrial Change and the Struggle for Source: KEOHANE, ROBERT O.; AFTER HEGEMONY. © 1984 Princeton Voting Rights The Industrial Revolution University Press. Reprinted by permission of Princeton University shifted economic power from landowners to Press. Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  52 CHAPTER 2 Britain businessmen and industrialists. The first important step toward democratization began in the late 1820s, when the propertied classes and increasing popular agita- tion pressed Parliament to expand the right to vote. With Parliament under consid- erable pressure, the Reform Act of 1832 extended the vote to a section of the (male) middle class. The reform was narrow. Before 1832, less than 5 percent of the adult population could vote—afterward, only about 7 percent. The reform showed the strict property basis for political participation. It inflamed class-based tensions. The Representation of the People Act of 1867 increased the electorate to 16 percent but left cities significantly underrepresented. The Franchise Act of 1884 nearly doubled the electorate. The Representation of the People Act of 1918 finally included nearly all adult men and women over age thirty. How slow a process was it? The struggle to extend the vote took place mostly without violence, but it lasted for centuries. World Wars, Industrial Strife, and the Depression (1914–1945) The development of the state was just beginning as it expanded its direct responsibil- ity for the economy and social welfare. State involvement in the economy increased significantly during World War I welfare state (1914–1918). The state took control of numerous industries, including railways, A set of public policies mining, and shipping. It set prices, restricted the flow of capital abroad, and chan- designed to provide for nelled resources into war production. After World War I, the state remained active citizens’ needs through in managing industry, but in a different way. Amid tremendous industrial disputes, direct or indirect provi- the state fragmented the trade union movement and resisted demands for workers’ sion of pensions, health care, unemployment control over production. This government manipulation of the economy openly con- insurance, and assistance tradicted the policy of laissez-faire (minimal government interference in the operation to the poor. of economic markets). Tensions between free-market principles and interven- tionist practices deepened with the Great Depression—1929 100 100 through much of the 1930s—and with World War II (1939– 1945). Fear of depression and yearnings for a better life after Population Enfranchised 90 90 Percentage of Adult 80 80 the war, transformed the role of the state and led to a period Percent Increase 70 70 of unusual political harmony. 60 60 50 50 40 40 Collectivist Consensus (1945–1979) 30 30 20 20 The term collectivism describes the consensus in politics after 10 10 World War II, when most Britons and all major political par- 0 0 ties agreed that governments should work to narrow the 1830 1832 1865 1867 1884 1918 1928 1832 1865 1867 1884 1918 1928 gap between rich and poor, and provide for basic necessi- ties through public education, national health care, and other Year Year policies of the welfare state (the set of policies designed to FIGURE 2.2 Expansion of Voting Rights. provide health care, pensions, unemployment benefits, and Expansion of the franchise in Britain was a assistance to the poor). They also accepted state responsibil- gradual process. Despite reforms dating from ity for economic growth and full employment. Most people the early nineteenth century, nearly universal in Britain came to expect that the state should be responsible adult suffrage was not achieved until 1928. for economic growth and full employment (understood as a Source: From RASMUSSEN. THE BRITISH POLITICAL PROCESS, 1E. © 1993 Wadsworth, a part of Cengage rate of unemployment at 4 percent or below). In time, how- Learning, Inc. Reproduced by permission. www. ever, economic downturn and political stagnation unravelled cengage.com/permissions. the consensus. Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  SECTION 1 The Making of the Modern British State 53 Margaret Thatcher and the Enterprise Culture (1979–1990) The 1970s saw the beginning of economic stagnation and declining competitiveness of key British industries in international markets. This fueled industrial strife. Class- based tensions remained near the surface of politics. No government or party could manage the economy. Edward Heath’s Conservative government (1970–1974) could not resolve the economic problems or the political tensions of increased inflation and reduced growth (stagflation). The Labour government of Harold Wilson and James Callaghan (1974–1979) fared no better. Unions became increasingly disgruntled, and the country underwent a rash of strikes throughout the winter of 1978–1979, the “winter of discontent.” Labour could not discipline its trade union allies to accept wage policies of the Labour government, which hurt the party in the election in May 1979. The traditional centrist Conservative and Labour alternatives seemed exhausted, at least within the collectivist mould. Many Britons were ready for a new policy agenda. Margaret Thatcher met the challenge. Winning the leadership of the Conservative Party in 1975, she launched a set of bold policy initiatives after the Conservatives returned to power in 1979. Re-elected in 1983 and 1987, she never lost a general election. Thatcher believed collectivism had weakened British industry and permitted powerful, self-serving unions to hold the country for ransom. To reverse Britain’s relative economic slide, Thatcher sought to jump-start the economy by cutting taxes, reducing social services where possible, and using government policy to stimulate competitiveness and efficiency in the private sector. Thatcher’s leadership as prime minister (1979–1990) marks a critical dividing line in postwar British politics. Like few others, she set the tone and redefined the goals of British politics. The Thatcher government inaugurated a decisively right- wing regime, set out to divide and conquer trade unions, and to commit the country to a firm neoliberal path. A conviction politician, Thatcher led her party and the country with a style that was characterized by some as “authoritarian populism.” In November 1990, a leadership challenge within Thatcher’s own Conservative Party caused her sudden resignation. Her anti-EU stance and high-handed leadership style brought her down. John Major replaced her, serving from 1990 to 1997 and leading the Conservative Party to a victory in 1992 before succumbing to Tony Blair’s New Labour in 1997. New Labour’s Third Way Under the leadership of Blair and Brown, the Labour Party was determined to mod- ernize itself. Although its official name did not change, the party was reinvented as New Labour—a party committed to modernization that promised to fundamentally recast British politics. It offered a “third-way” alternative to Thatcherism and the collectivism of traditional Labour. New Labour rejected interest-based politics, in which unions and working people voted Labour and businesspeople and the more prosperous were Conservatives. Labour won in 1997 with support from across the socioeconomic spectrum. It rejected the historic ties between Labour governments and the trade unions and emphasized partnership with business. Early in their careers, Tony Blair and Gordon Brown had formed an alliance as rising stars in the Labour Party. Blair pushed the party to modernize and expand its political base well beyond its heritage as a labor party. Brown became shadow chancellor (the opposition party’s spokesman on the economy). Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  54 CHAPTER 2 Britain But after Labour took office, Blair and Brown eventually became rivals rather than partners. Increasingly, the British government began to look and feel like a dual executive, with Brown in charge of domestic policies and Blair responsible for foreign affairs. Blair’s decision to support the U.S.-led war in Iraq was very unpopular. Although he enjoyed his third electoral victory in May 2005, his parliamentary major- ity was slashed by nearly 100 seats. In June 2007 Blair tendered his resignation to the Queen who immediately summoned Gordon Brown to become prime minister. A highly regarded finance minister, Brown never mastered the political skills required for a successful prime minister. Nor, despite his quick action in the face of the global financial meltdown that began in 2008, was Brown able to get out from under the shadow cast by New Labour’s role in the war in Iraq, when Labour prime min- ister Tony Blair almost single-handedly pulled the UK into a war that was extremely unpopular in the UK, especially among Labour party stalwarts. In the “what have you done for me lately” world of high-stakes politics, Brown’s effectiveness as chancellor (finance minister) for ten years and the fact that no national leader could prevent a severe downturn in the economy once the housing bubble burst was soon forgotten. He is likely to be remembered and caricatured for his inept- itude in the 2010 election campaign, which very likely no leader of the Labour Party could have won in the dreary economic climate that prevailed and with the bitter aftertaste of the war in Iraq still defining New Labour for many. Nor could he avoid responsibility as the incumbent for the global economic downturn nor shake off the weariness voters inevitably feel for a party that seems to have been in power too long (in this case thirteen years). Nor could Brown—or any prime minister—reduce the fear of sudden terrorist attacks that ordinary people in Britain have felt ever since bombs were set off in the London transport system on July 7, 2005 (in the UK referred to as 7/7). The Conservative–Liberal Coalition There is a familiar maxim: In politics, a week is a long time. If that is true, thirteen years is an eternity. Ever since the Conservatives held power in 1990, many of the core principles of New Labour’s approach have become widely shared across much of the political spectrum. When the Conservatives elected David Cameron as their party leader in 2005, he took the party in a familiar mainstream direction, appealing directly to youth for political support and championing modernization and pragmatism. Young (he was born in 1966), smart and telegenic, Cameron seemed to consciously adopt, in both style and substance, much of Blair’s early appeal, stealing the thunder of New Labour, and expanding the appeal of the Conservative Party by reaching out to youth and promoting agendas, such as climate change, citizen activism, and prom- ises to reduce both the global development gap and the gap between rich and poor in the UK—issues that would have broad non-ideological appeal. As a result, when the May 2010 election produced what the British call a “hung parliament”—an outcome after a general election when no party can by itself control a majority of the seats in parliament—it was a stretch for the Conservatives and the Liberal Democrats to form a government, but it was not an unbridgeable chasm. The Conservative–Liberal Coalition characterized their core principles this way in the jointly signed coalition agreement: This is an historic document in British Politics: The first time in over half a century two parties have come together to put forward a programme for partnership government. As our parties have worked together it has become increasingly clear to us that, although there are differences, there is also common ground. We share a conviction Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  SECTION 1 The Making of the Modern British State 55 that the days of big government are over; that centralisation and top-down control have proved a failure. We believe that the time has come to disperse power more widely in Britain today; to recognize that we will only make progress if we help people to come together to make life better.1 The coalition government, like New Labour before it, has tried to capture the mood in Britain, by rejecting ideological positions in favor of broad appeals to what Cameron and Clegg characterize as a radical, reforming government that attempts to blend the Conservative commitment to the dynamism of free markets with the Liberal Democrat commitment to decentralization. The result is captured in a new framework for governance, which the coalition partners call the “Big Society.” The Big Society argues for wide-ranging initiatives to empower ordinary citizens to take control over their lives and shift the balance of power downward from the state to communities and individual citizens. Parents should be given the opportunity to start their own schools; citizens should be encouraged to take over the administration of post offices; to elect police commissioners; to recall MPs who violate the public trust. An innova- tive approach to governance in the UK, the Big Society is the “Big Idea”—the catch- phrase and rebranding of politics demanded of all new governments in the UK. Critics mocked the Big Society, and supporters have not yet been able to clearly define what it means or implement Big Society policies effectively. At a time when severe cuts in public spending demanded a roll-back of government, it remains unclear whether the Big Society is a defining vision that will drive the agenda of a strong, stable, and effective coalition government, or that it will be remembered as a catch-phrase that could not paper over the difficulties that a government would face once it was committed to making the broad, deep, and increasingly unpopular cuts demanded by the “great recession” that began in 2008. Themes and Implications Our four core themes in this book, introduced in Part I, highlight the most important features of British politics. Historical Junctures and Political Themes A country’s position in the world of states influences its ability to manage domestic and international challenges. A weaker international standing makes it difficult for a country to control international events or insulate itself from external pressures. Britain’s ability to control the terms of trade and master political alliances during the nineteenth century confirms this maxim, but times have changed. Through gradual decolonization Britain fell to second-tier status. Its formal empire shrank between the two world wars (1919–1939) as the “white dominions” of Canada, Australia, and New Zealand gained independence. In Britain’s Asian, Middle Eastern, and African colonies, pressure for political reforms that would lead to inde- pendence deepened during World War II and afterward. Beginning with the formal independence of India and Pakistan in 1947, an enormous empire dissolved in less than twenty years. Finally, in 1997, Britain returned the commercially vibrant crown colony of Hong Kong to China. The process of decolonization ended Britain’s posi- tion as a dominant player in world politics. Is Britain a world power or just a middle-of-the-pack country in Europe? Maybe both. On the one hand, resulting from its role in World War II, Britain sits as Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  56 CHAPTER 2 Britain PROFILE David Cameron The King’s Speech is a charm- Unlike a great many people, including many party ing award-winning movie on both and national leaders, Cameron seems uncommonly sides of the Atlantic, based on a at home in his own skin, wears his considerable con- true story about how an Australian fidence gracefully, and breaks the mould of many speech therapist secretly aided British politicians and, in particular, Gordon Brown, King George VI, a stutterer, his predecessor as prime minister, who was ill at ease Photo by Christopher enabling him to speak unhaltingly in public, fidgety, and downcast. Cameron’s jovial Furlong - WPA Pool/ over the radio to rally the British disposition is a considerable political asset, almost Getty Images people to stand together against a trademark, as is his willingness to reveal publicly Hitler’s fascism as World War II what many would keep behind doors, within the fam- erupted. As The Economist, an influential weekly noted, it is ily. David and Samantha Cameron’s first child was a movie with deep political-cultural resonance: born with both cerebral palsy and a rare form of epi- lepsy. As the country came gradually to learn, David “There are some lessons here for Britain’s present Cameron and his wife, Samantha, spent many suc- rulers. This is a prickly, conservative and proud cessive nights sleeping on the floor of St. Mary’s hos- nation, in which grandeur must be offset with displays pital by their child, Ivan, until he succumbed. of humanity: David Cameron, a privileged chap who Cameron’s elite education and step-by-step rise has suffered tragedies in his private life, knows this to political leadership from MP (member of parlia- already.”* ment) to member of the Conservative Party research Born in 1966, in London, Cameron was brought up department, to opposition spokesman (member of in Berkshire, an historic county near Oxford and the the shadow cabinet with increasingly significant royal residence, Windsor Castle. He is the son of a portfolios), to leader of the Conservative Party is stockbroker and followed generations of Cameron very traditional, if unusually rapid. Nevertheless males who attended Eton, the historic boarding Cameron represents a new brand of Conservative, a school for the privileged elite, and then Oxford, where “third-way” conservative who has tried to steal much he studied Politics, Philosophy, and Economics of the thunder from Tony Blair, whom admirers liken (PPE). Cameron graduated in 1988 with a first class to John Kennedy, and who characterizes himself as honors degree. A journalist once asked Cameron, a compassionate conservative. If Cameron can lead just before he became leader of the Conservative Britain successfully through the tough economic and Party in 2005, if he thought his pedigree and elite political times he inherited from New Labour in 2010, schooling would hurt him politically. Cameron sighed he will have achieved a lasting place in modern British mightily and then offered a very revealing reply. “I politics—and he will have earned it the hard way. don’t know. You can try to be logical about it and say the upside is a terrific education, the downside is the label that gets attached and mentioned in every *Bagehot, The Economist. January 15, 2011, p. 62 (Economist.com/ article,” replied Cameron. “Or you can just think to blogs/Bagehot) yourself: I am what I am. That is what I had, I am very **Francis Elliott and James Hanning, Cameron: The Rise of the New grateful for it.”** Conservative, London: Harper Perennial, 2009, p. 25. a permanent member of the United Nations Security Council and a leading member of the world’s select club of nuclear powers. On the other hand, Britain almost always plays second fiddle in its special relationship to the United States, which has exposed British foreign policy to extraordinary pressures, especially since September 11. British governments also face persistent challenges in their dealings with the EU. Many coun- tries in Europe, but not Britain, have adopted a common currency, the euro. Can Britain afford to remain aloof from such fast-paced changes of economic integration? A second theme examines the strategies employed in governing the economy. Since the dawn of Britain’s Industrial Revolution, prosperity at home has relied Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  SECTION 1 The Making of the Modern British State 57 on superior competitiveness abroad. This is even truer today with intensified international competition and global production. Will Britain’s “less-is-more” laissez-faire approach to economic governance, invigorated by partnerships laissez-faire between the state and key competitive businesses, sustain economic growth and A term taken from the competitiveness in a global context? Can Britain achieve a durable economic French, which means “to model without fuller integration into Europe? let be,” in other words, A third theme is the potent political influence of the democratic idea, the universal to allow markets to act freely, with a minimum appeal of core values associated with parliamentary democracy as practiced first in the of state regulation. United Kingdom. Even in Britain, issues about democratic governance, citizen partici- pation, and constitutional reform have been renewed with considerable force. What are the implications of the election of May 2010 for democracy in Britain? In a sense no party won the election, but Labour was soundly defeated. The Liberal Democrats won five seats fewer than they had won in 2005 (down from 62 to 57), but won the oppor- tunity to be the junior partner in the Conservative–Liberal Democrat coalition govern- ment; and the Conservatives, with 36.1 percent of the vote, a mere 3.7 percent increase over 2005, were unable to form a government on their own, but won the right to be responsible for shepherding the country through political uncertainty and a moment of severe economic challenges. The highly unusual outcome—the first peacetime coalition in 70 years—guarantees that 2010 will be remembered as a remarkable election, but the consequences for the democratic idea in Britain will take longer to tally. The traditionally respected royal family, which has been rocked by improprieties, including tax scandals and infidelity over the past two decades, has seized on the mar- riage of Prince William as a moment of redemption. Few reject the monarchy outright, but questions about the finances and decorum of the monarchy have placed on the agenda broader issues about citizen control over government and constitutional reform. That William of Wales is now the knight in shining armor coming to the rescue of the royal family provides a graphic reminder that long-settled issues about the constitutional form and unity of the state have not been put to rest. Can the interests of England, Wales, Scotland, and Northern Ireland be balanced within a single nation-state? The fourth theme, collective identity, considers how individuals define themselves politically through group attachments, come together to pursue political goals, and face their status as political insiders or outsiders. Through the immigration of former colonial subjects to the United Kingdom, decolonization created a multi- racial and multiethnic society. Issues of race, ethnicity, and cultural identity have challenged the long-standing British values of tolerance and consensus. The con- cept of “Britishness”—what the country stands for and who makes up the political community—has come into question, especially since 9/11 and the bombings of the London transport system by British Muslims in July 2005. Implications for Comparative Politics Britain was the first nation to industrialize. For much of the nineteenth century, the British Empire was the world’s dominant power, with a vast network of colonies. Westminster model Britain was also the first nation to develop an effective parliamentary democracy. A form of democracy British politics is often studied as a model of representative government. Named based on the supreme after the building that houses the British legislature in London, the Westminster authority of Parliament model emphasizes that democracy rests on the supreme authority of a legislature—in and the accountability of its elected representa- Britain’s case, the Parliament. Finally, Britain has served as a model of gradual and tives; named after the peaceful evolution of democratic government in a world where transitions to democ- Parliament building in racy are often turbulent, interrupted, and uncertain. London. Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  58 CHAPTER 2 Britain Summary Despite presiding over an enviable period of economic growth and exerting high- profile leadership on the world stage, Blair lost the support of his party and was forced to hand over the reins of government to Gordon Brown for one big reason: support for the war in Iraq. The formation of an untested coalition government in 2010 is a potent reminder that democracy is an aspiration, always subject to change, and never a finished process. Britain faces many other challenges—regaining economic stability and unifying Britain as a multicultural, multiethnic, and multinational country. And it must come to terms with its role as a European country that enjoys a particularly close alliance with the United States, but has its own distinctive national and regional perspectives and interests. SECTION 2 POLITICAL ECONOMY AND DEVELOPMENT The pressures of global competitiveness and the perceived advantages of a min- Focus Questions imalist government have encouraged the adoption in many countries of neolib- What are the similarities eral approaches to economic management. A legacy from Thatcher’s Britain, and what are the differ- neoliberalism was a key feature of Tony Blair’s and Gordon Brown’s New Labour ences in New Labour’s government. Its policies aimed to promote free competition, interfere with entre- approach to governing preneurs and managers as little as possible, and create a business-friendly environ- the economy compared to ment to attract foreign investment and spur innovation. Given that New Labour had that of Margaret Thatcher and John Major? long accepted the core principles of neoliberalism, the differences in economic pol- icy between New Labour and the Conservative–Liberal coalition reflected changed On balance how circumstances—the economic crisis driven by the recession of 2008—more than successful was New Labour’s approach to ideological shifts. economic management? What are the lessons the Conservative–Liberal coalition government The State and the Economy should learn from New Labour? Thirty years ago, economic growth in Britain was low and unemployment high. What are the key ele- Britain was routinely called the “sick man of Europe.” But from the mid-1990s to ments of the coalition the great recession of 2008, Britain avoided the high unemployment and recession government’s approach of many EU nations. The UK economy has run on a “two-track” pattern of growth. to economic management A strong service sector (especially in financial services) offset a much weaker indus- in the post-2008 context? trial sector. Until the global downturn of fall 2008, the British economy exhibited overall strength. With low unemployment, low interest rates, low inflation, and sus- neoliberalism tained growth, the UK performance was one of the best among the leading industrial A term used to describe economies. government policies With the transition in 2010 from a New Labour to a Conservative–Liberal gov- aiming to promote free ernment, the policy orientation did not change at a stroke. Neoliberalism drove competition among the economic policy of New Labour and, as a result, the economic performance of business firms within the market, including reduced the UK economy today. Two central dimensions, economic management and social governmental regulation policy, capture the new role of the state and show how limited this new state role and social spending. really is, partly by design and partly by the sheer force of changes demanded by the recession. Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  SECTION 2 Political Economy and Development 59 Economic Management Like all other states, the British state intervenes in economic life, sometimes with considerable force. However, the British state has generally limited its role to broad policy instruments that influence the economy generally (macroeconomic policy). macroeconomic How has the orientation of economic policy evolved during the postwar period? policy Policy intended to shape The Consensus Era After World War II, the unity inspired by shared suffering the overall economic during the war and the need to rebuild the country crystallized the collectivist con- system by concentrating sensus. The state broadened and deepened its responsibilities for the economy. on policy targets such as inflation and growth. The state assumed direct ownership of key industries. It also accepted the respon- sibility to secure low levels of unemployment (a policy of full employment), expand social services, maintain a steady rate of growth (increase economic output or GDP), keep prices stable, and achieve desirable balance-of-payments and exchange rates. The approach is called Keynesian demand management, or Keynesianism (after the Keynesianism British economist John Maynard Keynes, 1883–1946). Named after British Before Thatcher became leader of the Conservative Party in 1975, Conservative economist John Maynard leaders generally accepted the collectivist consensus. By the 1970s, however, Britain Keynes, an approach to was suffering economically without growth and with growing political discontent. economic policy in which state economic policies Investments declined, and trade union agitation increased. Industrial unrest in the are used to regulate the winter of 1978–1979 dramatized Labour’s inability to manage the trade unions. It economy to achieve stable seemed as if everyone was on strike. Strikes by truckers disrupted fuel supplies. Strikes economic growth. by train-drivers disrupted inter-city commerce and visits to granny. Some ambulance drivers refused to respond to emergency calls. Grave diggers refused to bury the dead. Thatcher came to power a few months later in May 1979. What was dubbed “the winter of discontent” destroyed Britain’s collectivist consensus and discredited the Keynesian welfare state. Thatcherite Policy Orientation The economic orientations of Thatcher and John Major, her hand-picked successor, rejected Keynesianism. Monetarism monetarism emerged as the new economic doctrine. It assumed that there is a “natural rate An approach to economic of unemployment” determined by the labor market itself. State intervention to policy that assumes a steer the economy should be limited to a few steps to foster appropriate rates of natural rate of unemploy- growth in the money supply and keep inflation low. Monetarism reflected a radical ment, determined by the labor market, and change from the postwar consensus regarding economic management. Not only was rejects the instruments of active government intervention considered unnecessary; it was seen as undesirable government spending to and destabilizing. run budgetary deficits for stimulating the economy New Labour’s Economic Policy Approach Gordon Brown as chancellor—and and creating jobs. later as prime minister—insisted on establishing a sound economy. He was determined to reassure international markets that the British economy was built on a platform of stability (low debt, low deficit, low inflation) and that the Labour government could be counted on to run a tight financial ship. Only after he turned the public debt into a surplus did the “iron chancellor” reinvent himself as a more conventional Labour chancellor. Even then, Brown used economic growth to increase spending (rather than cut taxes). Brown claimed that since capital is international, mobile, and not subject to con- trol, industrial policy and planning are futile if they focus on the domestic economy alone. Instead, government should improve the quality of labor through education and training, maintain labor market flexibility, and attract investment to Britain. Strict control of inflation and tough limits on public expenditure would promote both Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  60 CHAPTER 2 Britain employment and investment opportunities. Economic policy should increase competitive strength through government-business partnerships and efforts to improve the skill of the work force and therefore the com-