Tag: Gordon Brown

  • Gordon Brown – 2005 Speech at the National Gallery in Scotland on International Development

    Gordon Brown – 2005 Speech at the National Gallery in Scotland on International Development

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, at the National Gallery in Scotland on 6 January 2005.

    Let me start this morning in front of this audience brought together by its shared concern for world poverty and for the needs of others by expressing on all our behalfs not only our sorrow at the tragic consequences of the biggest and most devastating earthquake the modern world has ever witnessed but also our shared resolve to do everything in our power to help the victims, to tend the sick, to support the needy and to assist the reconstruction.

    Recent days have shown both our shared vulnerabilities and our linked destinies as an earthquake in one continent has left families devastated in every continent.

    But humbled first by the power of nature, we have since been humbled by the power of humanity – the awesome power of nature to destroy, the extraordinary power of human compassion to build anew.

    For in recent days we have we have witnessed not only an unprecedented demonstration of sympathy but also an unprecedented demonstration of generosity.

    More people giving spontaneously than at any time and in any previous appeal.

    Young children giving often more than they can afford.

    Men and women separated by geography but drawn closer than ever together by a shared determination to help, to care, to heal the wounds.
    Individuals in afflicted countries, even when they have been left with so little themselves, selflessly doing so much to help others.

    And the true test of the international community will be how we can fund and assist both the immediate day-to-day emergency services needs but also the long-term reconstruction of these countries.

    We know that just as we must ensure that all Heavily Indebted Poor Countries get debt relief so they can finance the development of their health and education systems, so too we must ensure that countries affected by the tsunami are not prevented from paying for essential reconstruction because they are having to fund the servicing of their debts. So, for afflicted countries that request it, we and other Governments are proposing an immediate moratorium on debt repayments.

    And just as we are proposing more generally that we widen and deepen multilateral debt relief, we are also proposing 100 per cent multilateral debt write-off for Sri Lanka — and unilaterally we, Britain, will pay ourselves 10 per cent of that debt write-off.

    And depending on the conclusions of the needs assessments, which should now take place, I believe that the G7 and Paris Club must also stand ready to consider all options for further assistance. And this will be on the agenda for the G7 Finance Ministers meeting – which will be chaired by Britain – at the beginning of February.

    Although the scale of last week is unprecedented, tragically natural disasters can befall any country but the capacity of countries to withstand and respond to these events in part reflects the state of the emergency services, health care systems, the basic infrastructure. And all of these reflect the underlying levels of prosperity and poverty. Put starkly, countries without adequate warning systems, with less developed health care and sanitation systems, with poorer infrastructure, weaker institutional capacity and fewer resources are more vulnerable during disasters, less able to cope in their aftermath and a minute of devastation can wipe out years of development.

    So from new early warning systems to proper healthcare the world will have to do more.

    The UN Secretary General this morning has asked for $1 billion more.

    And, as a starting point, we welcome the decision by the World Bank to make hundreds of millions of additional resources available for reconstruction.

    And we welcome the offer of $1 billion of emergency assistance loans by the IMF to the Maldives, Indonesia and Sri Lanka.

    And, as Tony Blair, Hilary Benn and I have all said, we – Britain – will do everything we can.

    And does not already the response to the massive tidal wave in south east Asia show just how closely and irrevocably bound together today and in our generation are the fortunes of the richest persons in the richest country to the fate of the poorest persons in the poorest country of the world even when they are strangers and have never met? People who now see that they have the same shared concerns, the same mutual interests, the same common needs and the same linked destinies.

    When I delivered the CAFOD lecture a few weeks ago about the economic, social and moral case for us now seeing people we have never met and may never meet in other continents not as strangers but as neighbours, I argued that what impelled us to action where there is need was not just enlightened self interest that recognises and acts upon our interdependence – our dependence each upon the other for our sustenance and our security – but, even more important, a belief in something bigger than ourselves: our shared moral sense that moves human beings even in the most comfortable places to sympathy and solidarity with fellow human beings even in far away places in distress.

    And the worldwide demonstration in the last few days not just of sympathy but of support shows that even if we are strangers, separated and dispersed by geography, even if diverse because of race, even if differentiated by wealth and income, even if divided by partisan beliefs and ideology – even as we are different diverse and often divided – we are not and we cannot be moral strangers. We are one moral universe. And the shared moral sense common to us all makes us recognise our duty to others.

    And it is this moral sense exhibited in the worldwide response to disaster that shows not only what can be done – in Britain alone £76 million raised so far by the British public, after Gift Aid almost £90 million – but also demonstrates what has now to be done – that we address the underlying causes of poverty.

    So while 2004 was a year which ended in the horror of a natural disaster, 2005 is a year that can start with the hope of human progress.

    2005 is a year of challenge but also a year of opportunity when – from the foundation of hope – we can, I believe, see real change.

    A year which is also the year when the UK has special responsibilities as President of the G7 and European Union, a year in which we can tackle not just the terrible and tragic consequences of the tsunami – working together to forge a long term plan for the reconstruction of Asia – but also forge a new ‘Marshall Plan’ for the entire developing world.

    And let me say the urgency and scale of the agenda I am going to propose for debt relief, for new funds for development and for fair trade is now even more pressing given the tragic events of recent days.

    It is because I want a world that does not have to choose between emergency disaster relief and addressing the underlying causes of poverty and injustice – between advancing first aid and advancing fundamental change – that the proposals I am putting forward today to advance the interests of all the developing world will – the Government believes – find support in all parts of the world.

    In just a few months time, just a few miles from here in Edinburgh, the G8 will meet in Gleneagles to discuss the most important issue of our generation – world poverty.

    This year is the year when world leaders will first gather here in Scotland and then in September at the United Nation’s Millennium Summit to examine just how much we have to do together if we are to seriously address the scale of poverty round the world today.

    We meet because exactly five years ago in New York and in a historic declaration the world signed up to a shared commitment to right the greatest wrongs of our time including:

    the promise that by 2015 every child would be at school

    the promise that by 2015 avoidable infant deaths would be prevented

    the promise that by 2015 poverty would be halved.

    In other words promises that rich countries would work with the poor to right the great wrongs of our time.

    The Millennium Development Goals were not a casual commitment.

    Every world leader signed up.

    Every international body signed up.

    Almost every single country signed up.

    The world in unison accepting the challenge and agreeing the changes necessary to fulfil it – rights and responsibilities accepted by rich and poor alike.

    But already, so close to the start of our journey to 2015, it is clear that our destination risks becoming out of reach, receding into the distance.

    The first commitment to be met is that by next year the gap between the chances for girls and boys in primary and secondary education would be closed.

    But we know already that not only are the vast majority – 60 per cent – of developing countries unlikely to meet the target but most of these are, on present trends, unlikely to achieve this gender equality for girls even by 2015.

    And we know one stark fact that underlines this failure: not only are 70 million girls and 40 million boys of school age not going to school today but today and every day until we act 30,000 children will suffer and 30,000 children will die from avoidable diseases.

    At best on present progress in sub Saharan Africa:

    primary education for all – the right to education so everyone can help themselves – will be delivered not in 2015 but 2130 – that is 115 years late;

    the halving of poverty – the right to prosper so each and every individual can fulfil their potential – not by 2015 but by 2150 – that is 135 years late;

    and the elimination of avoidable infant deaths – the right to a healthy life so all have the opportunity to make the most of their abilities – not by 2015 but by 2165 – that is 150 years late.

    For decades Africa and the developing world has been told to be patient.

    To those who say Africa should remain patient, the reply now comes from Africa: 150 years is too long to be patient. 150 years is too long to wait for justice.

    150 years is too long to wait when infants are dying while the rest of the world has the medicines to heal them.

    150 years is too long to wait when a promise should be redeemed, when the bond of trust should be honoured now, in this decade.

    In 1948, with much of Europe still in a state of ruins, the American Secretary of State General Marshall proposed, for his generation, the most ambitious plan for social and economic reconstruction.

    Marshall’s starting point was a strategic and military threat but he quickly understood the underlying problems were social and economic.

    Marshall’s initial focus was the devastation wrought in one or two of the poorest countries but he rapidly realised his plan should be an offer to all poor countries in the neighbourhood.

    Marshall started with a narrow view of aid needed for an emergency but quickly came to the conclusion that his plan had to tackle the underlying causes of poverty and deprivation.

    Marshall’s early thoughts were for small sums of money in emergency aid but very soon his searching analysis brought him to the conclusion that a historic offer of unprecedented sums of money was required.

    He announced that America would contribute an unparalleled 1 per cent of its national income.

    He said that his task was nothing less than to fight hunger, poverty, desperation and chaos.

    His Treasury Secretary argued that prosperity like peace was indivisible, that it could not be achieved in one country at the expense of others but had to be spread throughout the world and that prosperity to be sustained had to be shared.

    And Marshall’s plan – and the unparalleled transfer of resources – not only made possible the reconstruction of Europe but the renewal of world trade and generation of prosperity for both these continents.

    And I believe today’s profound challenges call, even in a different world, for a similar shared response: comprehensive, inclusive, an assault on the underlying causes of poverty, with unprecedented support on offer from the richest countries.

    I believe in 2005 we have a once in a generation opportunity to deliver for our times a modern Marshall Plan for the developing world — a new deal between the richest countries and the poorest countries but one in which the developing countries are not supplicants but partners. And as we advance towards the G7 Finance Minister’s meeting next month and the Heads of Government meeting chaired by Tony Blair in July, our Government calls on all countries to join with us in agreeing the three essential elements of a 2005 development plan for a new deal:

    first, that we take the final historic step in delivering full debt relief for the debt burdened countries;

    second, that we deliver the first world trade round in history that benefits the poorest countries and ensures they have the capacity to benefit from new trade; and

    third – alongside declaring timetables on increasing development aid to 0.7 per cent of national income – that we implement a new international finance facility to offer immediate, predictable, long term aid for investment and development – building on commitments by individual governments, leveraging in additional funds from the international capital markets, raising an additional $50 billions a year each year for the next ten years, effectively doubling aid to halve poverty.

    I make this proposal for a new deal between developed and developing countries because as we meet here today – at the start of 2005 – I am aware not only of the pressures for emergency aid but that the promises we all made five years ago will forever remain unfulfilled unless we act together and act now.

    So 2005 is a year of challenge.

    A testing time as to whether the world can not only provide the emergency aid that is needed now to help the millions affected by the Asian crisis but whether we can wake up to the tragedy of global poverty and all its implications. Whether we can finally live up to the scale of the promises made. Whether we can come together as never before to fashion a new relationship between rich and poor countries and peoples.

    Later this month there will be a special report – the UN Millennium Project Report on poverty – which will provide devastating evidence on the scale of poverty and how far we have still to go.

    Next month under UK chairmanship the G7 Finance Ministers meet to examine what the G7 can do on debt and finance for development.

    In March there will be a personal report by Kofi Annan on world poverty — and the publication of the recommendations of the Africa Commission.

    In April then June special meetings of G7 Finance Ministers will prepare a final paper on debt and development.

    In July Britain plays a special role hosting the G8 summit in Gleneagles.

    Leading to in September the UN Millennium Summit.

    And then it is only a few weeks before December in Hong Kong the world trade talks – what was intended to be the development round for trade – resolving the other great development issue of our time.

    And with the public reaction to the tsunami showing the mood of the British people, I believe this support is growing wider and deeper with already in ‘Making Poverty History’ more than a hundred aid, development, and trade organisations and anti poverty organisations coming together in demonstrations, campaigns, petitions – in challenging Government to make poverty the issue of the year.

    Let me just summarise what I believe can be achieved by our Marshall Plan proposal… that as developing countries devise poverty reduction plans, expand their own development, investment and trade, tackle corruption and demonstrate transparency, we the richest countries ensure justice by taking this year, now, urgently, three vital steps.

    First on debt relief, let us in 2005 make a historic offer that finally removes the burden of decades old debts that today prevent the poorest countries ever escaping poverty and leading their own economic development.

    Whereas in 1997 just one country was going to receive debt relief, today 27 countries are benefiting with $70 billion of unpayable debt being written off, and 37 countries are now potentially eligible, up to $100 billions of debt relief now possible.

    And it is because of debt relief in Uganda that 4 million more children now go to primary school.

    Because of debt relief in Tanzania that 31,000 new classrooms have been built, 18,000 new teachers recruited and the goal of primary education for all will be achieved by the end of 2005.

    Because of debt relief in Mozambique that half a million children are now being vaccinated against tetanus, whooping cough and diphtheria.

    And it is partly because of debt relief that in the past decade in developing countries, primary school enrolments have increased at twice the rate of the 1980s; the proportion of those aged over 15 who can read has risen from 67 per cent to 74 per cent; life expectancy has increased by from 53 years to 59 years; and the number of people living in extreme poverty has fallen by 10 per cent.

    We do not wipe out the debt of the poorest countries simply because these debts are not easily paid. We do so because people weighed down by the burden of debts imposed by the last generation on this cannot even begin to build for the next generation.

    To insist on the payment of these debts is unjust – it offends human dignity.

    What is morally wrong cannot be economically right.

    And when many developing countries are still choosing between servicing their debts and making the investments in health, education and infrastructure that would allow them to achieve the Millennium Development Goals, we know we must do more.

    That is why this year we must make rapid progress and today I want to set out both the principles to govern the next stage and the measures that can be delivered.

    While we have achieved bilateral debt write off, the fact is that up to 80 per cent of the historic debt of some of the poorest countries is owed to international institutions and a solution to the debt tragedy now requires progress on debts owed not just to us but owed to the World Bank, the IMF and the development banks.

    So we propose, first, that this year the richest countries match bilateral debt relief of 100 per cent with the bold act of offering 100 per cent multilateral debt relief – relief from the $80 billion of debt owed to the IMF, the World Bank and the African Development Bank.

    Second, that the cancellation of debts owed to the International Monetary Fund should be financed by a detailed plan and timetable we now agree to use IMF gold.

    Third, we propose that countries make a unique declaration that they will repatriate their share of the World Bank and the African Development Bank’s debts to their own country.

    I can state that Britain will relieve those countries still under the burden of this debt to these banks by unilaterally paying our share – 10 per cent – of payments to the World Bank and African Development Bank. And we will both deepen and widen our debt relief as we will pay our share on behalf not just of Heavily Indebted Poor Countries but – because their need is just as great – of all low income countries, as long as they can ensure debt relief is used for poverty reduction.

    In the G7 Finance Ministers meeting next month I will be asking other countries to contribute directly or to a World Bank trust fund.

    And I also ask the European Union which deserves credit for more than 1.5 billion euros of debt relief so far to match that generosity with deeper multilateral debt relief.

    Alongside more debt relief, 2005 is the opportunity that may not easily return if missed to agree a progressive approach to trade.

    Economic development is the key to meeting the Millennium Development Goals and long term prosperity.

    And no country has escaped poverty other than by participation in the international economy.

    Our task is and remains helping developing countries build the capacity – the monetary and fiscal policies, the infrastructure, the support for private investment – essential for their development.

    But we also know the damage that rich countries protectionism has done and that the developed world spends as much subsidising agriculture in our own countries as the whole income of all the 689 million people in sub Saharan Africa taken together.

    Fair trade is not simply about the financial benefits, it is also about empowerment and dignity – enabling people to stand on their own two feet and using trade is a springboard out of poverty.

    It is not enough to say ‘you’re on your own, simply compete’.

    We have to say ‘we will help you build the capacity you need to trade’.

    Not just opening the door but helping you gain the strength to cross the threshold.

    So in 2005 we need to make urgent progress.

    First we the richest countries agree to end the hypocrisy of developed country protectionism by opening our markets, removing trade-distorting subsidies and in particular, doing more to urgently tackle the scandal and waste of the Common Agricultural Policy – showing we believe in free and fair trade.

    Second, while recognising that while bringing down unjust tariffs and barriers is important, agree that developing countries receive the support necessary to carefully design and sequence trade reform into their own poverty reduction strategies.

    And third, we have to recognise that developing countries will need additional resources to build their economic capacity and the infrastructure they need to take advantage of trading opportunities – and to prevent their most vulnerable people from falling further into poverty as they become integrated into the global economy.

    We know that after macroeconomic stability, poor infrastructure, lack of transparency, legal problems, poor labour skills and low productivity are key risks and deterrents to both foreign and domestic investment.

    Nor do many countries have the elasticity of supply to react to international market signals. The World Bank estimates that giving 24 of the poorest countries total access to western markets would have no impact on their economies as they would not have the capacity or infrastructure to make use of the opportunity.

    Even today for 12 African countries less than 10 per cent of their roads are paved.

    Telecommunication costs are such that calls from the poorest countries to the USA are five times the costs of calls from a developed country. While water and sanitation underpin health and development, even today 40 billion working hours in Africa each year are used up to collect water.

    And while tariff costs are often highlighted, it is actually transport costs that often constitute a bigger burden of the cost of exporting. With freight and insurance costs representing 15 per cent of the total value of African exports it is difficult for them to be competitive.

    It is also a fact that the informal economy accounts for more than 50 per cent of national income in most poor countries and the International Labour Organisation (ILO) estimates that in Africa 93 per cent of new jobs are in the informal sector.

    So countries need investment in physical infrastructure, institutional capacity -from legal and financial systems to basic property rights and, at root, transparency that avoids corruption – physical infrastructure and, of course, investment in human capital to enable growth, investment, trade and therefore poverty reduction.

    And to secure investment in development we need funds for development.

    2005 can be the year when we free nations from the burden of crippling and unpayable debts and remove unacceptable barriers to trade and private investment but it is clear that we cannot solve the urgent problems of poverty and development around the world without a third step — a substantial increase in resources for development, for investment in the future.

    Making better use of existing aid – reordering priorities, untying aid and pooling funds internationally to release additional funds for the poorest countries – is essential to achieve both value for money and the improved outcomes we seek but we face uncomfortable facts:

    that while ten years ago aid to Africa was $33 per person, today it has not risen but fallen to just $27;
    that when 80 million African children still do not go to school, all the public spending on education in sub-Saharan Africa taken together is still, per pupil, under $50 a year: less than $1 a week for schools, teachers, books and equipment; and
    that when in Africa 25 million people are infected with HIV/AIDS, with in 24 countries one in every ten of children dying before the age of one, sub-Saharan Africa still devotes only $12 per person per year to public health, a fifth of one per cent that is spent on the health of each individual in the richest countries – which is why the everyday commonplace tragedy is of mothers struggling to save the life of their infant child and in doing so losing their own.

    With the AIDS pandemic average life expectancy in Africa is less than 50.

    And today Ethiopia the scene of Live Aid twenty years ago has 70 million people but only 2,000 doctors.

    So it is clear that we are a long way short of the predictable, regular financing necessary to make the difference that is needed.

    At the UN Monterrey Financing for Development Conference, donor countries pledged an additional $16 billion a year from 2006. For the UK’s part, our level of Official Development Assistance will increase to £6.4 billion – 0.47 per cent of our national income – by 2008. Beyond that we wish to maintain those rates of growth which, on this timetable, would lift the ODA ratio beyond 0.5 per cent after 2008 and to 0.7 per cent by 2013 – and over the next year we plan to ask other countries to join us and nine others in becoming countries which have either already reached 0.7 or have set a timetable towards it.

    But we know that even if one or two of the G7 could overcome fiscal constraints and go to 0.7 per cent tomorrow, we will still not reach the scale of the resources needed to achieve the Millennium Development Goals – at least $50 billion more a year – not in 2015 but now.

    And the truth is that the scale of the resources needed immediately to tackle disease, illiteracy and global poverty is far beyond what traditional funding can offer today.

    That is why the UK Government has put forward its proposal for stable, predictable, long-term funds frontloaded to tackle today’s problems of poverty, disease and illiteracy through an International Finance Facility.

    And let me just explain what the IFF could achieve for the world’s poor.

    The IFF is founded upon long-term, binding donor commitments from the richest countries like ourselves.

    It builds upon the additional $16 billion already pledged at Monterrey.

    And on the basis of these commitments and more it leverages in additional money from the international capital markets to raise the amount of development aid for the years to 2015.

    And let me tell you the significance and the scale of what I am proposing.
    With one bold stroke: to double development aid to halve poverty.
    $50 billion more in aid a year each year for the poorest countries.

    Think of what it could achieve:

    as many as half of all malaria deaths could be prevented if people had access to diagnosis and drugs that cost no more than twelve cents;
    a quarter of all child deaths could be prevented if children slept beneath bed-nets costing only $4 each;
    $3 more for each new mother could save up to 5 million lives over the next ten years;
    and in total for an investment of $9 billion more a year we could build schools so that every child can get primary education;
    $10 – and preferably $20 – billion more a year could tackle TB and malaria, build health systems and address the tragedy of HIV/AIDS.

    I believe the International Finance Facility has the following advantages.

    First, the IFF would urgently create the scale of funding necessary to invest simultaneously across sectors – providing humanitarian assistance as well investment in education and health, trade capacity and economic development – so that instead of having to choose between first aid and tackling poverty, between health and education, between capacity building in trade and tackling aids, the impact of extra resources in one area reinforces what is being done in others and has a lasting effect.

    Second, the IFF would provide a predictable flow of aid to developing countries so they no longer have to suffer from an up to 40 per cent variance in the amount of aid they receive from year to year which prevents them from investing efficiently in health and education systems for the long term and tackling the causes of poverty rather than just the symptoms.

    Third, the IFF is designed to invest now to prevent problems later – to scale up development aid between now and 2015, enabling us to frontload aid so a critical mass can be deployed as investment now and over the next few years when it will have the most impact in achieving the Millennium Goals.

    Indeed, the fact is that unless we adopt the IFF or a similar mechanism immediately there is simply no other way of meeting the Millennium Development Goals in time.

    The IFF is not only complementary to existing commitments to the 0.7 per cent target – allowing participating countries to take faster steps towards 0.7 by increasing the resources available now – but can be implemented alongside continuing consideration of other proposals to provide financing in the longer term – including international taxes, special drawing rights and other forms of revenue raising on a world wide basis.

    I believe that the advantage of the International Finance Facility I have described is not just that it is a means of providing the necessary resources immediately and thus far faster than other initiatives, but also that we can move quickly with a committed group of countries – not moving at the pace of the slowest but tackling the problem head-on now with those that are prepared to sign up

    And so the practical benefits of the IFF are:

    we provide the support poor countries need straightaway – frontloading investment in infrastructure, education and health systems, and economic development so they can benefit from access to our markets;

    we provide grants immediately to help ensure a sustainable exit from debt so poor countries do not need to choose between emergency relief and long term investment;

    we make primary schooling for all not just a distant dream but a practical reality – meeting these needs and rights now and not deferring them to an uncertain future; and

    we advance towards our global goals of cutting infant mortality and maternal mortality on schedule, eliminating malaria and TB and treating millions more people who are suffering from HIV/AIDS.

    Let me give an illustration of what – because of the IFF model – could already be possible.

    The Global Alliance for Vaccines and Immunisation (GAVI) – who have immunised over the last five years not a few children but a total of 50 million children round the world – is interested in applying the principles of the IFF to the immunisation sector – with donors making long term commitments that can be leveraged up via the international capital markets in order to frontload the funding available to tackle disease.

    If, by these means, GAVI could increase the funding for its immunisation programme by an additional $4 billion over the next ten years, then it would be possible that their work could save the lives of an additional 5 million people between now and 2015 and a further 5 million lives after 2015. And I praise Bill Gates and Bono for their farsightedness – coming together to urge this week a financing proposal for making immunisation available to millions more.

    So in one fund, with one initiative, we can glimpse the possibilities open to us if we act together.

    And there are other possibilities that could change the world.

    Let me say that with proper funds the medical breakthroughs now being achieved in developing a preventive vaccine for malaria could be matched by the farsightedness of an advance purchase scheme that could prevent the loss of more than 1 million lives a year because of this dread disease.

    Only £400 million pounds a year is spent on research for a preventative vaccine for HIV/AIDS, despite the fact that 75 million are affected and 25 million have died. And as we examine what can be done to prevent as well as treat HIV/AIDS it is obvious that with proper funds there could be a similar bold initiative on research and development – to internationalise and advance the research and then to provide support for the development of preventive vaccines…once again showing the possibilities for the Global Fund for health and for building health capacity that the International Finance Facility we propose opens up for the world.

    And if what we achieve for health we could also achieve for schools, for debt relief, for the capacity to trade, for anti poverty programmes, for economic development, think of the better world we can achieve.

    So the aim of the International Finance Facility is to bridge the gap between promises and reality.

    Between hopes raised and hopes dashed.

    Between an opportunity seized and an opportunity squandered.

    And in the forthcoming G8 discussions we will ask all countries to join dozens of countries who have already given their backing to support and sign up to the IFF and we will be setting out a framework within which we can implement it.

    2005 is therefore a once in a generation opportunity. And when people ask whether it is possible to make a breakthrough and say our proposals are too difficult, I say:

    people thought the original plans for the World Bank were the work of dreamers;

    people thought that the Marshall Plan unattainable;

    even in 1997 when we came to power people thought debt relief was an impossible aspiration and yet we are wiping out $100 billion of debt;

    people thought no more countries would sign up to a timetable for 0.7 per cent in overseas development aid and yet this year alone five countries have done so.

    Each of us of course have our respective responsibilities, our very different duties, as politicians, aid organisations, individuals.

    But for all of us an even greater measure of the potential is that in 2000 first hundreds, then thousands, then millions of people first in one country then in one continent, then in all countries, and in all continents came together to demand debt relief and in doing so changed the world. And we can do this again.

    Even today that coalition is not just being reformed but growing in strength.

    And I pay tribute to all of you here today – aid workers, supporters, contributors, campaigners – who are fighting for great causes, standing for the highest ideals, often bearing huge burdens and bringing the greatest of hope to those in the greatest of needs.

    A few months ago I quoted a century old phrase saying ‘the arc of the moral universe is long but it does bend towards justice’.

    This was not an appeal to some iron law of history but to remind people in the words of a US President that ‘the history of free peoples is never written by chance but by choice’ – that it is by our own actions that people of compassion and goodwill can and do change the world for good’.

    Of course it is difficult – as we are witnessing in south east Asia – and there are disappointments and set backs in international development when progress is slow but when we are stalled or set back in our development aims I am reminded of the words of the former Head of the UN

    Dag Hammarskjold who said:

    ‘When the morning’s freshness had been replaced by the weariness of midday…
    When the leg muscles quiver under the strain…
    When the climb seems endless…
    And suddenly nothing will go quite as you wish…
    It is then that you must not hesitate’

    And if we do not hesitate but press on, if we do not allow setbacks to discourage us but let them challenge us to do even more on aid and trade and as a result are inspired to work and strive even harder – our determination not diminished but intensified – I believe that:

    with the scale of the challenge revealed in its starkest form this week and this month summoning us to action;

    with the tsunami showing the capacity of people everywhere to unite in response and with the growth, organisation and now clamour of public opinion calling for action now – ‘the passion of compassion’ – resonating here in Britain and reverberating across all countries; and

    with a determination among world leaders to be bold – shown by united global action over the Asian crisis – the arc of the moral universe while indeed long will bend towards justice in the months and years to come.

  • Gordon Brown – 2004 Speech at the Commission for Africa Meeting

    Gordon Brown – 2004 Speech at the Commission for Africa Meeting

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, in Cape Town, South Africa on 17 January 2005.

    Let me thank the seven Members of the Commission for Africa for joining us today. The 17 Finance Ministers. Representatives from the African Union, NEPAD, the African Development Bank and from the Africa Commission meeting in Addis Ababa a few months ago.

    And let me say first of all what a privilege it is to be here in South Africa as the guest of Trevor Manuel, the success of whose nine years as Finance Minister is admired and respected not only throughout this continent but in every continent.

    I am here to listen rather than just talk.
    Not to lecture but to learn and to take advice.
    Not to prescribe or to preach but to support and sustain your efforts.
    And to back you in this continent ripe for progress at this moment of opportunity so that the Commission for Africa underpins and provides resources for your plans, your New Economic Programme for African Development, your African Union decisions and your country by country economic programmes and reforms.

    And let me start by saying what I have already learned from you and from the struggles, the sacrifices and the achievements of this great country – South Africa. That if anyone ever thinks our shared vision of globalisation as social justice on a global scale can be dismissed as the thoughts of unrealistic dreamers let them come here to South Africa: yesterday an apartheid nation, today a multiracial nation, demonstrating to the world that no injustice can last for ever.

    And if anyone thinks we are powerless and doubts the power and moral force of us coming together as one let them recall the historic and inspirational words of the South African constitution:

    – that the world belongs to all who live in it;
    – that it is our duty to heal the divisions of the past, our obligation to honour all those who have suffered for justice and freedom, our mission to free the potential of every community and every person;
    – and today this summons us to support not just constitutional rights but economic empowerment. Formal equality before the law supplemented by the achievement of equal opportunity in fact.

    And everywhere I have travelled I have seen not only the potential and promise of Africa but also the yearning that the political and constitutional rights now be matched by economic and social rights and opportunities: as stated in the Millennium Development Goals, by 2015 the right of every child to go to school, the right of every child and every mother to have decent health care, the right of each and every individual to make the most of their talents.

    And I have heard the pleas of young children too poor to pay schools fees but desperate to stay on at schools; the ambition of mothers wanting sons and daughters to be nurses, doctors, engineers, teachers; and I have been moved to action by the young sister of an AIDS victim Paulo desperate to train as a doctor to help her brother and hundreds of others.

    But the Commission for Africa is founded on the realisation that, at best on present progress in Sub Saharan Africa:

    – primary education for all will be delivered not as the Millennium Development Goals solemnly promised in 2015 but 2130 – that is 115 years late;
    – the halving of poverty not as the richest countries promised by 2015 but by 2150 – that is 135 years late;
    – and the elimination of avoidable infant deaths not as we the richest nations promised by 2015 but by 2165 – that is 150 years late.

    Africans know that it is often necessary to be patient but the whole world should now know that 150 years is too long to ask peoples to wait for justice.

    And when we know the scale of suffering that has to be addressed, the problem I identify is not that the millennium promise was wrong, the ambition too great, the pledge unrealistic, the commitments unnecessary, or the needs of Africa now any less but that the global resolution required from all the nations of the world has not yet been strong enough to honour, fulfil and deliver the promises made.

    And I believe that the evidence we have received to the Commission for Africa shows us in the starkest terms that justice promised will forever be justice denied until we remove from this generation the burden of debts incurred by past generations.

    Justice promised will forever be justice denied unless we remove trade barriers that undermined economic empowerment.

    Justice promised will forever be justice denied unless underpinning Africa’s plan – underpinning NEPAD, the African Union and each country’s plan – there is a plan for Africa as bold as the Marshall Plan of the 1940s, releasing the resources we need to match reform and transparency with finance to tackle illiteracy, disease and poverty.

    So first let the Commission for Africa become the world’s vehicle by which we agree to the requests I have heard from all over Africa and finally, once and for all, write off the historic but unpayable debts of the past for the poorest countries and end an injustice that has lasted far too long. 80 per cent of Africa’s external debts are now owed to the international institutions and I have talked with Commissioners and Finance Ministers about detailed proposals to use IMF gold to write off debt; to ask World Bank shareholders to take over the debts owed by 70 of the poorest countries to them; and from today, signing long term agreements already with Tanzania, Mozambique and then with other countries, we – Britain – have announced from now until 2015 we will take responsibility for our share of the World Bank debts.

    Second, from my consultations so far, there is a call for the Commission for Africa to have as its economic theme economic empowerment. I recognise that solutions cannot be translated from one continent to another or indeed from one country within one continent to another. Development cannot be imposed from outside or even from above but must take root and be owned from the ground up. And I recall the words of Robert Kennedy here in South Africa that we do not develop in exactly the same way, that each nation will march to the beat of different drummers, that solutions can neither be dictated nor transplanted to others.

    So we must empower countries to sequence their own trade reform to the needs of their own development. And that is why the Commission for Africa should see its task as to back and resource your New Economic Plan for Africa with its peer review process – the biggest and most comprehensive continent wide programme of economic reform. And that is why I know the Commission for Africa sees is task as mobilising the support of the richest countries for the programmes of NEPAD, the African Union and for your country by country programmes.

    Let the Commission for Africa also be the first official report to call for, and deliver, a lasting deep seated trade justice that would mean not only that Europe and the richest countries be honest about and address the scale of the waste and scandal of agricultural protectionism, unfair Rules of Origin and Economic Partnership Agreements but – as I have heard from every African President, Prime Minister, Finance Minister and Trade Minister I have met – to address infrastructure needs – transport, power, water, telecommunications and then technical and vocational skills – to build capacity from legal and financial systems and to root out corruption — and for this we should provide the resources that will enable developing countries to participate successfully in the international economy.

    So we support the proposals in the Commission for Africa report on infrastructure:

    – a fund to support infrastructure priorities;
    – loan finance for small and medium sized businesses and for micro-credit;
    – a science and technology and tertiary education plan;
    – and a plan for rural development, irrigation, research, encouragement of local markets, land reform and environmental improvement.

    And all of us will benefit from the approach we share – that economic empowerment is founded not just on the capacity to take advantage of trading opportunities but on the encouragement of private investment, entrepreneurship. And – as promoted by NGOs and business organisations – we must all, rich and poor countries alike, be fully transparent in our dealings, address corruption, be truly accountable, show where the money goes. And the way to achieve this is for all of us rich and poor alike to put transparency and the best governance into practice by all of us opening our books.

    Third, from the voices I have heard there has also been a clear demand that the Commission for Africa today challenge the rich countries to recognise that when the Marshall Plan transferred 1 per cent of richest country’s national income to the poorest, our proposal is for each of the richest countries to reach 0.7 per cent of national income in long-term and predictable aid for investment. And our proposal is that in place of declining aid levels for Africa – from 33 dollars per person to 27 dollars per person – we create now, this year and urgently on the road to 0.7 per cent an International Finance Facility that each year from 2005 to 2015 generates $50 billion of resources – the quickest most effective way of guaranteeing long-term, stable, predictable funding.

    To double aid to halve poverty.

    $10 billion more a year to fund primary education free of charge to ensure the 105 million children today and every day denied schooling can learn with classrooms, teachers and books.

    $20 billion more a year because with this money we have it in our power to provide health services and treatments to eliminate in our generation malaria and TB and help the 25 million people suffering from HIV/AIDS and the 11 million AIDS orphans languishing in this continent.

    And money not only to fund the war on poverty but to build infrastructure that will ensure self sustaining growth.

    Fifty years ago a British politician came to Africa and talked of the winds of change blowing across Africa. I accept that until new political and constitutional rights are matched by new economic and social opportunities, and until we address unfulfilled promises, it is not the freshness of strong winds blowing but it is the heat of a climate of injustice burning deep into our souls. And the importance of the International Finance Facility is that it is about action to right wrongs this year, now, urgently. No longer evading, no longer procrastinating, no more excuses, not an idea that will take years to implement but one which can move forward immediately.

    In another time and in another continent in the life and journey of Martin Luther King was his growing recognition that the achievements of civil rights could not be real without the achievement of economic and social rights.

    The US constitution he said was a promissory note but it had yet to be honoured.

    He said that the cheque offering justice had been returned with ‘insufficient funds’ written on it. But he also said, ‘We refuse to believe that there are insufficient funds in the great vaults of opportunity of this nation’, and that the time had come for ‘the riches of freedom and the security of justice’.

    I go from here tomorrow to meet 25 European Union Finance Ministers and take our proposals to them; and I will meet the Finance Ministers of the United States and Canada and seek support so that, this year, a once in a generation opportunity for change becomes a year of delivery.

    When people say what we propose is too ambitious, unrealistic, a distant and utopian dream let the commission for Africa remind the doubters:

    – they first dismissed civil rights as the work of dreamers;
    – they first wrote off the Marshall Plan as a distant utopia;
    – they first ridiculed debt write off of debt as economically illiterate and impossible;
    – and let us also remember here in Cape Town they first said those who fought again apartheid here in South Africa were violating rights when we all know they were righting wrongs.

    And let us be inspired to action by the African vision of community – ‘ubuntu’ – not only that my humanity is inextricably bound up with yours but that the humanity of each of us comes into its own in a community of all of us.

    And so let us tell the world about our shared vision of globalisation in 2015.
    Founded on the empowering idea of the dignity of each individual.
    Globalisation not as insecurity for all.
    Globalisation not as two permanent classes of victims – rich and poor – but globalisation as social justice on a global scale.

    One moral universe where we feel, however distantly, the pain of others; where each of us show by our actions we believe in something bigger than ourselves; and where whatever your background, race or birth we are – as a young AIDS victims told me last week – neighbours not strangers, each of us brothers and sisters together.

    One moral universe where progress is not just one individual or even just one or two countries doing well but all of us advancing together and where by the strong helping the weak it makes us all stronger.

  • Gordon Brown – 2004 Speech at the British Council Annual Lecture

    Gordon Brown – 2004 Speech at the British Council Annual Lecture

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, on 7 July 2004.

    Can I say what a pleasure it is to have the privilege to deliver the annual British Council Lecture.

    To celebrate this year an exceptionally successful seventy years of an institution which has played and continues to play such an important part in British society and in Britain’s relationship with the rest of the world.

    Now last month in a speech at the Mansion House, I argued how in the last half of the last century post imperial Britain came to be defined to the world by perceptions of national economic decline.

    And I said that in the first years of this new century we can begin to identify how:

    • a once stop go British economy is now stable;
    • a once corporatist British business and industrial culture is seen now as more enterprising and more flexible;
    • a country once characterised by high unemployment now enjoys record employment;
    • a country which can now, on a rising tide of confidence, aspire to become one of the great success stories of the new global economy.

    But if we are to fully realise the economic potential of Britain my view is that we need something more.  For the twelve years I have been Shadow Chancellor or Chancellor, I have felt that our country would be better able to meet and master the challenges of ever more intense global competition if we could build a shared sense of national economic purpose. Indeed, over half a century, Britain has been damaged by the absence of agreement on economic purpose or direction: lurching for narrow political reasons from one short term economic panacea to another, often public sector fighting private, management versus worker, state versus market in a sterile battle for territory, that deprived British businesses and British workforces of confidence about the long term and held our country back. So when in 1997 I made the Bank of England independent my aim was to build a consensus across all sections of society about the priority we all attached to economic stability.  A shared purpose not just across macroeconomic policy but across the whole range of economic questions is, I believe, even more essential now not just to face up to global competition from Asia as well as Europe and America but if we are to have the strength as a country to make the hard choices on priorities that will determine our success.

    Creating a shared national purpose also reflects a deeper need: to rediscover a clear and confident sense of who we are as a country.

    I believe that just about every central question about our national future – from the constitution to our role in Europe, from citizenship to the challenges of multiculturalism – even the question of how and why we deliver public services in the manner we do – can only be fully answered if we are clear about what we value about being British and what gives us purpose and direction as a country.

    Take the vexed question of Europe. I believe it has been a lack of confidence about what Britain stands for that has made it difficult for us to feel confident about our relationship with, and our potential role in, Europe.  And as a result led many to believe – wrongly – that the only choice for Britain is between splendid isolation and total absorption. As with the debate over all international questions, the debate over Europe is, at root, about how the British national interest is defined and what we should stand for as a country.

    Take our constitution and all the great and continuing debates about the nature of the second chamber, the relationship of the legislative to the executive, the future of local and central government.  Our approach to resolving each of these questions is governed by what sort of country we think we are and what sort of country we think we should become.

    Take devolution and nationalism. While the United Kingdom has always been a country of different nations and thus of plural identities – a Welshman can be Welsh and British just as a Cornishman or woman is Cornish, English and British – and may be Muslim, Pakistani or Afro Caribbean, Cornish, English and British – the issue is whether we retreat into more exclusive identities rooted in 19th century conceptions of blood, race and territory, or whether we are still able to celebrate a British identity which is bigger than the sum of its parts and a Union that is strong because of the values we share and because of the way these values are expressed through our history and our institutions.

    And take the most recent illustration of what challenges us to be more explicit about these issues:  the debate about asylum and immigration – and the debate about multiculturalism. Here the question is essentially whether our national identity is defined by race and ethnicity – a definition that would leave our country at risk of relapsing into making a misleading ‘cricket test’ or, worse, colour the determination of what it is to be British.  Or whether there are values which shape our national identity and which all citizens can share – thus separating citizenship from race – and which can find explicit expression so that they become a unifying and strengthening force.

    And this is important not just for tackling these questions – central as they are – but for an even larger reason.

    In a growingly more insecure world people feel a need to be rooted and they draw strength from shared purpose.

    Indeed if people are to cope successfully with often bewildering change then a sense of belonging is vital.  And that, in turn, depends on a clear shared vision of national identity.

    And I want to suggest that our success as Great Britain – our ability to meet and master not just the challenges of a global marketplace but also the international, demographic, constitutional and social challenges ahead – and even the security challenges facing a terrorist threat that has never been more challenging and demands upon those charged with our security never greater – depends upon us rediscovering from our history the shared values that bind us together and on us becoming more explicit about what we stand for as a nation.

    But if these issues around national identity are so important, my starting question must be: why over decades have we as a country singularly failed to address them and yet we see – as Jonathan Freedland has so eloquently described – other countries, principally America, successfully defining themselves by values that their citizens share in common?  The real answer, I believe, lies in our post war history – in a loss of self confidence and direction, even a resignation to national decline, a loss of self confidence that is itself now becoming part of our history.

    I was born in mid century in what you might now call middle Scotland – 1951. And while much was changing around us, Britain was still a country of fixed certainties that – echoing Orwell’s ‘Lion and the Unicorn’ – were well understood, virtually unquestioned and barely stated.

    The early 1950s was the world of Sir Winston Churchill, a coronation that was reported with almost religious enthusiasm, an unquestionably United Kingdom, and around us symbols of an imperial Britain.  I grew up in the fifties and sixties on maps of the world with a quarter of it pink and on British books and comics and then films which glorified the Blitz, the spitfires, Sir Douglas Bader and endless reruns of the Guns of Navarone.

    This was, of course, a Britain whose confidence was built – unlike the USA – not on aspirations about the future but on real achievements of the past:

    • the Britain that could legitimately make claim to be the first country in the world to reject the arbitrary rule of monarchy;
    • the Britain that was first to make a virtue of tolerance and liberty;
    • the Britain that was first in the industrial revolution;
    • the Britain that was centre to the world’s largest empire – the global economy of its day;
    • the Britain that unlike continental Europe was never subject to revolution;
    • the Britain that had the imperial mission which made us a world power and then a ‘defence of the West’ mission which appeared to justify a continuing sense of ourselves as a world power;
    • the Britain that – unlike America which as a country of immigrants had to define itself by its belief in liberty and opportunity for all – did not feel its exceptionalism called for any mission statement, or defining goals, or explicit national ethos. Indeed we made a virtue of understatement or no statement at all.

    This is a long way from the image of Britain of recent decades  – what now goes for ‘post war Britain’ – that long half century of uncertainty:

    • the Britain of managed decline – at home and abroad
    • of failing corporatism
    • of sterile self defeating struggles between public and private sectors, management and unions, state and market.  (In the fifties it was said we had managed decline, in the sixties mismanaged decline, and in the seventies we declined to manage).
    • the Britain
      • of doubts and hesitations about Europe
      • of the growth of secessionist movements in Scotland and Wales
      • of, as immigration rose, a retreat by some into defining Britishness through race and ethnicity, what was called the ‘cricket test’
      • and then, as the sun set on the empire, the failed attempts to root our post 1945 identity simply in the longevity of our institutions alone – indeed in the idea of unchanging institutions.

    It was almost as if we looked backward with nostalgia because we could not look forward with hope.  And so as the gap between imperial myth and reality grew, so too the view grew that Britain was not, in fact, underpinned by any strong sense of Britishness at all.  And it led to a questioning of the very existence of Britain, right across mainstream opinion. Indeed Andrew Marr now the political editor of the BBC choose to entitle his ‘state of the nation’ book ‘The Day That Britain Died’, writing ‘I have a profound belief in the likelihood of a British union dissolving within a decade.’

    For Neil Ascherson from the liberal left all that remains of Britishness is ‘a state, a flag and armed forces recruited from every part… just institutions…not social reality’.   And with a similar eloquence his fellow Scottish writer Tom Nairn has argued that because there was little that is British left to underpin Britain, what he called ‘The Break Up of Britain’ was inevitable.

    Professor Linda Colley whose ground breaking historical research had demonstrated that the ‘United Kingdom’ was founded on great but ultimately transient historical forces – the strength of anti French feeling, the bonds of empire and Protestantism  – concludes:

    ‘The factors that provided for the forging of the British nation in the past have largely ceased to operate.  Protestantism, that once vital cement, has now a limited influence on British culture, as indeed has Christianity itself. Recurrent wars with the states of continental Europe have in all likelihood come to an end, so different kinds of Briton no longer feel the same compulsion to remain united in the face of the enemy from without. And crucially both commercial supremacy and imperial hegemony have gone. And no more can Britons reassure themselves of their distinct and privileged identity by contrasting themselves with the impoverished Europeans or by exercising authority over manifestly alien people.  God has ceased to be British and providence no longer smiles’.

    And the historian Norman Davies, even lists 18 British institutions which according to him have defined Britishness and which he now suggests have lost their authority, putting the existence of Britain in doubt.

    And this view of decline and decay – and then a profound sense we have lost our way as a country – is, if anything, held more forcibly today by writers and thinkers from the right – Roger Scruton (whose highly challenging study of Englishness is entitled ‘An Elegy’) Simon Heffer, Ferdinand Mount.   For them the final nails in the coffin of Great Britain are not just devolution but Britain succumbing to multiculturalism and to Europe. For Mount, quoting Orwell that ‘England is perhaps the only great country whose intellectuals are ashamed of their own nationality’, our nation could become  ‘one giant cultural mall in which we would all wander, free to chose from a variety of equally valuable lifestyles, to take back and exchange purchases when not given satisfaction or simply to window shop’.   And Melanie Phillips concludes ‘the big political divide in the country is now clear…it is over nothing less than the protection of liberal democracy and the defence of the nation itself’.

    Yet as I read these writers and thinkers I detect that beyond the battleground on individual issues – our relationship with Europe, devolution and the constitution, asylum and immigration – some common ground does exist: it is the recognition of the importance of and the need to celebrate and entrench a Britishness defined by shared values strong enough to overcome discordant claims of separatism and disintegration.

    Take David Goodhart’s recent contribution to the multiculturalism debate. In questioning whether there is an inherent conflict between the need for social cohesion and diversity he argues that he wanted to emphasise that what we need is ‘a core set of social norms…who are we does matter’.

    And while Melanie Phillips argues that a culture war is raging she has a remedy rooted in shared values of Britishness. There is hope, she says, because ‘if citizenship is to mean anything at all Ministers must sign up to an overarching set of British values’.

    Interestingly while Sir Herman Ousley, former Chairman of the Commission for Racial Equality, directly assails her views and indeed those of David Goodhart, he too returns to that same starting point – that there are British values all can share. Echoing Orwell’s ‘England My England’ his biographer Sir Bernard Crick argues British ‘people should have a sense of allegiance, loyalty, law and order and political tolerance’. Even Tom Nairn writes of Britishness that ‘there is a residual and yet still quite comfortable non-smallness about the term’.

    But when we ask what are the core values of Britishness, can we find in them a muscularity and robustness that neither dilutes Britishness and British values to the point they become amorphous nor leaves them so narrowly focused that many patriotic British men and women will feel excluded? Of course, a strong sense of national identity derives from the particular, the special things we cherish. But I think we would all agree that we do not love our country simply because we occupy a plot of land or hold a UK passport but also because that place is home and because that represents values and qualities – and bonds of sentiment and familiarity – we hold dear.

    And it is my belief that out of tidal flows of British history – 2000 years of successive waves of invasion, immigration, assimilation and trading partnerships that have created a uniquely rich and diverse culture – certain forces emerge again and again which make up a characteristically British set of values and qualities which, taken together, mean that there is indeed a strong and vibrant Britishness that underpins Britain.

    I believe that because these islands – and our maritime and trading traditions – have made us remarkably outward looking and open, this country has fostered a vigorously adaptable society and has given rise to a culture both creative and inventive.  But an open and adapting society also needs to be rooted and Britain’s roots are on the most solid foundation of all a passion for liberty anchored in a sense of duty and an intrinsic commitment to tolerance and fair play.

    The values and qualities I describe are of course to be found in many other cultures and countries. But when taken together, and as they shape the institutions of our country these values and qualities – being creative, adaptable and outward looking, our belief in liberty, duty and fair play – add up to a distinctive Britishness that has been manifest throughout our history, and shaped it. ‘When people discard, ignore or mock the ideals which formed our national character then they no longer exist as a people but only as a crowd’, writes Roger Scruton. And I agree with him.

    For there is indeed is a golden thread which runs through British history of the individual standing firm for freedom and liberty against tyranny and the arbitrary use of power.  It runs from that long ago day in Runnymede in 1215 to the Bill of Rights in 1689 to not just one but four Great Reform Acts within less than a hundred years. And the great tradition of British liberty has, first and foremost, been rooted in the protection of the individual against the arbitrary power of first the monarch and then the state.

    But it is a golden thread which has also has twined through it a story of common endeavour in villages, towns and cities – men and women with shared needs and common purposes, united as neighbours and citizens by a strong sense of duty and of fair play.

    And their efforts – and that sense of duty and fair play – together produced uniquely British settlements that, from generation to generation, have balanced the rights and responsibilities of individuals, communities and state and led to a deeply engrained British tradition of public service.

    First, liberty. It was Montesquieu who wrote in the 18th century that ours was ‘the freest country in the world’.  I would suggest that it is because different ethnic groups came to live together in one small island that we first made a virtue of tolerance, welcoming and included successive waves of settlers  – from Saxons and Normans to Huguenots and Jews and Asians and Afro-Caribbean’s, and recognising plural identities. Today 85 per cent believe a strong sense of tolerance is important to our country’s success. And I would suggest that out of that toleration came a belief in religious and political freedom – illustrated best by Adam Nicholson’s story of the creation of the King James Bible: different denominations coming together in committee to create what was called ‘irenicon’, which means a symbol of unity for the whole nation.

    Liberty meant not just tolerance for minorities but a deeply rooted belief – illustrated early in our history by trial by jury – in the freedom of the individual under the law and in the liberty of the common people rooted in constantly evolving English common law.  When Henry Grattan – the 18th century Irish politician  – attempted to sum up our unique characteristics, he said that you can get a Parliament from anywhere but you can only get liberty from England. Indeed so powerful were the ideas continued in the 1689 Bill of Rights which led to liberty associations all over Britain that both sides in the American War of Independence fought ‘in the name of British liberty’ and before America took the word to be its own, liberty was, in fact, identified with Britain.

    Of course liberty is, in Matthew Arnold’s words, ‘a very good horse to ride, but to ride somewhere’. And history is strewn with examples of how we failed to live up to our ideals. But the idea of liberty did mean, in practice, that for half a century it was Britain that led the worldwide anti slavery movement with engraved on the badge of the anti slavery society a figure of a black man and the quote, ‘Am I not a man and a brother’.  Indeed at home no slave was ever permitted and abroad the Royal Navy searched the world to eradicate slavery.

    And this view of liberty not only produced the Bill of Rights and the anti slavery movement but caused Britain to lead the way in restricting the arbitrary power of Monarchs and then onward to the far reaching democratic reforms of the nineteenth and twentieth centuries.

    And at every point this British belief in liberty has been matched by a British idea of duty as the virtue that reinforces neighbourliness and enshrines the idea of a public realm and public service.  A belief in the duty of one to another is an essential element of nationhood in every country but whether it arose from religious belief, from a ‘nobless oblige’, or from a sense of solidarity, duty in Britain – for most of the time an unwritten code of behaviour rather than a set of legal requirements – has been, to most people, the foundation of rights rather than their consequence.

    And the call to civic duty and to public service – often impelled by religious convictions – led to the mushrooming of local and national endeavour, of associations and clubs, a rich tradition of voluntary organisations, local democracy and civic life.

    From the guilds, the charities, the clubs and associations – which bred amongst other things the City of London’s unique structure  – and from the churches, to the municipal provision of public amenities like libraries and parks and then to the mutual insurance societies, trades unions and non governmental organisations, the British way is to recognise and enhance local initiative and mutual responsibility in civil affairs and to encourage and enhance the status of voluntary and community organisations – Burke’s ‘little platoons’ – in the service of their neighbourhoods.

    Alongside that a passionate commitment to duty, Britishness has also meant a tradition of fair play. We may think today of British fair play as something applied on the sports field, but in fact most of the time it has been a very widely accepted foundation of social order:  treating people fairly, rewarding hard work, encouraging self improvement through education and being inclusive.  In his last speech to Parliament in March 1955 – the speech that urged the British people to ‘never flinch, never weary, never despair’ – Churchill described the essential qualities of the British people and at the forefront was fair play. For other nations, he said, ‘the day may dawn when fair play, love for one’s fellow men, respect for justice and freedom, will enable tormented generations to march forth triumphant from the hideous epoch in which we have to dwell’.

    And this commitment to fair play – captured in Orwell’s word ‘decency’ – has animated British political thought on both left and right over the centuries, right through to the passion for social improvement of the Victorian middle classes and the Christian socialists and trade unions who struggled for a new welfare settlement in the 20th century.  It was a settlement – making opportunity available to all, supporting the most vulnerable in society, inclusive, and ensuring what we would today call social justice  – which over nearly half a century brought forth agreement across party and across social classes.

    So the British way has always been more than self-interested individualism.  Even in the heyday of free market philosophy society was always thought to rest on something greater than harsh organised selfishness. In his Theory of Moral Sentiments Adam Smith described the ‘helping hand’ that matched the ‘invisible hand’ of his ‘wealth of nations’. And he believed that the drive for economic success should be combined with traditions of social obligation, public service and a broad moral commitment to civic improvement. And this has brought forth tens of thousands of local neighbourhood civic associations, unions, charities, voluntary organisations – the space between state and markets in a Britain that has always rejected absolutism and crude selfish individualism – that together embody that very British idea – civic society – that was discovered in Britain long before ‘social capital’ ever entered our dictionary.  And it is an idea that Chief Rabbi Jonathan Sacks captures eloquently for our times when he talks of British society and citizenship not in terms of a contract between people that, in legalistic ways, defines our rights narrowly on the basis of self interest but a British ‘covenant’ of rights and responsibilities born out of shared values which can inspire us to neighbourliness and service to others.

    So while we talk in economics of the Anglo Saxon model – the pursuit of economic individualism through free markets – Britishness has always been more than just the ‘freedom from’ restraint but also stands for civic duty and fairness  And these two qualities of British life – the notion of civic duty binding people to one another and the sense of fair play which underpins the idea of a proper social order – come together in the ethic of public service. And this gave rise to great British public institutions admired throughout the world  — from the National Health Service and our army, navy and air forces to our universities, including the Open University, and the expression of civic purpose and social inclusion in culture and arts – our great national and municipal art galleries, museums and the BBC – not least the BBC World Service and the British Council.

    Alongside these values have been found what I regard as essentially British qualities: an ability to adapt, and an openness to new ideas and new influences which have made us, as a country, both creative and internationalist in our outlook.

    To have managed change for three hundred years without violent revolution is unique.  I find it extraordinary that some appear to believe that it is somehow British to defend the idea of a constitution that never changes.  It is precisely our ability to evolve our constitution that characterises the British way. So stability in our society does not come from rigidity:  it comes from the ability to accommodate and master change.  ‘A state without the means of some change’ Edmund Burke famously declared ‘is without the means of its conservation’. ‘Change is inevitable’ Benjamin Disraeli said in 1867, ‘in a progressive society change is constant’. And a willingness and ability to adapt enabled Britain to embrace the opportunities of the industrial revolution with unprecedented vigour and success and, more than a century later, to mobilise from peace to war to survive and triumph in two world conflicts.

    And our very openness to new ideas and influences also means that at the heart of British qualities are a creativity and inventiveness – from the first agricultural revolution to the pioneering work of Babbage and Turing that made possible the computer and information revolution; in science discoveries from DNA to cloning; in engineering the work of Brunel and the inventions from the steam engine to the TV; and in medicine from penicillin to interferon – an inventiveness that has ranged right across medicine and science to the arts and music.  And so it is not surprising that as we rediscover these qualities, British dynamism is leading the world in some of the most modern and creative industries – communications, fashion, film, popular music, art, architecture, and many areas of science and the environmental technologies.

    And out of that same openness to new ideas and influences, an outward looking internationalism that made us not just the workshop of the world but as a country of merchant adventurers, explorers and missionaries the greatest trading nation the world has ever seen. Many people have made much of the fact that Britain was a set of islands.  But unlike some other island nations British history has never been marked by insularity.  We are an island that has always looked outwards, been engaged in worldwide trade and been open to new influences – our British qualities that made us see, in David Cannadine’s words, the Channel not as a moat but as a highway.  An island position that has made us internationalist and outward looking and not – as other islands have become – isolationist and inward looking.

    Of course all nations lay claim to uniqueness and exceptionalism and many would choose or emphasise the qualities of the British people in a different way from me. And in highlighting this view of British history – one which places what I regard as intrinsically British values and qualities at its centre  – I do not want to claim moral superiority for Britain nor romanticise the past. And I do not gloss over abuses which also characterised our past. Nor do I claim the values and qualities I have described are not to be found in other nations. But I believe that they have shaped our institutions and together they have been responsible for the best of our past — creating a distinctive British identity that should make us proud, and not reticent nor apologetic, about our history. But most of all these values and qualities should inform any discussion of the central questions affecting our future.

    In fact the two ideologies that have characterised the histories of other countries have never taken root here.  On the one hand an ideology of state power – which choked individual freedom making the individual slave to some arbitrarily defined collective interest – has found little or no favour in Britain. On the other hand an ideology of crude individualism – which leaves the individual isolated, stranded, on his own, detached from society around him – has no resonance for a Britain which has a strong sense of fair play and an even stronger sense of duty and a rich tradition of voluntary organisations, local democracy and civic life.

    And this is my idea of Britain today.  Not the individual on his or her own living in isolation sufficient unto himself but a Britain of creativity and enterprise which is also a Britain of civic duty and public service.  And in this vision of society there is a sense of belonging that expands outwards as we grow from family to friends and neighbourhood; a sense of belonging that then ripples outwards again from work, school, church and community and eventually outwards to far beyond our home town and region to define our nation and country as a society.

    And we should not only be explicit about our British values but express them fully in way we organise our institutions. Let me suggest the agenda that flows from this.

    First, start with Burke’s ‘little platoons’ which reflect both a British desire for liberty and a strong sense of civic duty and fair play.

    If the British way is to encourage and enhance the status of voluntary and community organisations in the service of their neighbourhoods then we should recognise that aspects of post war centralisation fell short of our vision of empowered individuals and vibrant communities. The man in Whitehall never knew best; the woman in the WRVS and local community service usually knew much more. And so the question is how from the foundation of British values we refashion the settlement between individual, community and government.

    Today in Britain, there are more than 160,000 registered charities, more than 200,000 non-charitable voluntary and community organisations, around 400,000 in total, one for every hundred of the adult population – defining Britain as such a thing as society: an estimated 16 million people who do some kind of voluntary work – and nearly two adults in every five who give of their time to help others at least once in the year – and we best reflect our British traditions of civic duty and public service by strengthening our community organisations and making them more relevant to the challenges of today.  Take community service by young people. If America has its Peace Corps and now its Ameircorps, South Africa its National Youth Service, France its ‘Unis-Cite’, the Netherlands its ‘Groundbreakers Initiative’, Canada its Katimavik programme, should not Britain – with far greater and deeper traditions of voluntary and community service – be building on those traditions to engage a new generation of young people in service to their communities?  And should we not be doing far more to provide nationally and locally the means by which young people find it easy to participate?

    I am sure that following the Russell Commission on young people, we will wish to consider establishing a national youth community service; to ensure that poverty should not be a barrier to a gap year option for a young person; to promote a range of opportunities nationally and internationally that back up the marvellous work already done by volunteering organisations; and to secure a business engagement in this that can translate the widespread social concern that exists among employers and employees alike into effective action for the common good.  And I am sure we will also want to do more to translate community values into meeting new needs through new means like the internet and community television and so carry on the British tradition of voluntary service into the next generation. Take mentoring – underdeveloped in Britain – where I can envisage a new initiative for the future of Britain where through the internet, TV, local organisations and personal contact, we could establish a new network of mentors to befriend, advise, support and link those who need help and advice to those who can help.  And because sporting activity as so important to defining our country’s view of itself I believe we should also look in detail at the proposal to revive and expand participant sports in our country for a new National Sports Foundation.

    It follows secondly that if the British way is to restore and enhance local initiative and mutual responsibility in civic affairs we should be doing far more to strengthen not just voluntary organisations but local institutions of government. Rather than asking people to look upwards to Whitehall to solve all their problems, the British way is surely to encourage more and more people, from their own localities, to take more charge of the decisions that affect their lives.  Today with devolution, elected mayors and new local energy and enthusiasm, many cities in England, Scotland, Wales and Northern Ireland are undergoing a renaissance and as they become centres of initiative influencing our whole country, the whole of Britain can learn and draw from the energy of each of its parts.  And a reinvigorated local democracy can, I believe, emerge to empower people in their own neighbourhoods to deal with the challenges they face:

    • anti social behaviour where the engagement of the whole community is paramount;
    • schooling, where the participation of parents and the local community is vital;
    • the health service where the direct involvement of patients and prospective patients matters.

    Third, a Britishness that thrives on a strong sense of duty and fair play and a commitment to public service means taking citizenship seriously. And like David Blunkett who will also focus on these issues in a speech today, I would welcome a national debate on what the responsibilities and rights of British citizenship means in practice in the modern world. I believe strongly in the case for citizenship lessons in our schools but for citizenship to matter more, these changes to the curriculum must be part of a far more extensive debate  – a debate that, like the wide ranging debate we see in America about what it is to be an American and what America stands for, includes our culture and history as well as our constitution and laws. And I believe we would be stronger as a country if there was, through new literature, new institutes, new seminars, new cross party debate about our Britishness and what it means.

    And what of the institutions and symbols that best reflect citizenship and thus give importance to national identity? These must be symbols that speak to all our citizens so I believe that we should respond to the undermining of an inclusive citizenship by the British National Party by not only fighting their racism but by asserting at every opportunity that the union flag does not belong to a vicious minority, but is a flag for all Britain – symbolising inclusion, tolerance and unity; and that England, Scotland and Wales – whose celebration of national identity is to be welcomed and encouraged – should also honour not just their own flags but the union flag for the shared values it symbolises.

    There is also a more substantive issue about the importance of integration set against respect for diversity. Of course we live in a multiethnic as well as multinational state but because a multiethnic Britain should never ever have justified a crude multiculturalism where all values became relative, surely the common values that we all share should be reflected in practical measures such as those David Blunkett is outlining today to avoid religious hatred and to encourage – and in some cases require – the use of the English language.  Take an economic example.  Because many cannot find work because of language difficulties it is surely right to pilot mandatory language training for those jobseekers whose language needs are preventing them from getting jobs.

    Upholding British values summons us to do far more to tackle discrimination and promote inclusion. And I believe that there should now be greater focus on driving up the educational attainment of pupils from ethnic minorities and a more comprehensive New Deal effort to tackle unacceptably high unemployment in areas of high ethnic minority populations.

    If I am right, the British way is to develop a strong cohesive society in which in return for responsibility there is opportunity for all. And our British belief in fairness and our commitment to public service makes the NHS founded on health care based on need not ability to pay one of the greatest British institutions – an NHS that both reflects the values of the British people and is being modernised for our times in accordance with these very values. And we should never lose sight of the importance of the NHS not just to our view of Britishness but to the worlds view of Britain. If, in the twenty first century, we cannot make the NHS work in Britain we must ask what hope there is for millions in developing countries struggling with ill-health and disease who cannot afford private health care. But if we can show that the NHS, health care based on need not ability to pay, is indeed the best insurance policy in the world then we give to the developing countries a model of modern health care – and hope.

    Rediscovering the roots of our identity in our shared beliefs also allows us to address complex questions about our relationship with the rest of the world.

    This is not a subject for today – not least because it will be discussed endlessly for many months to come – but a far more detailed speech. But two observations follow from my remarks today. The first is that globalisation is fundamentally changing the nature of Europe. In the past European integration was built on the idea of a European trade bloc dominated by European flows of capital, European wide companies and European brands. Today we are in a completely different world of global movements of capital, global companies and global brands. As a result, the old integrationist project – the single market and single currency followed by tax harmonisation, federal fiscal policies and a quasi federal state – the vision of a trade bloc Europe – is fatally undermined. For to succeed economically Europe must move from the old model – the trade bloc or fortress Europe – to a new globally oriented Europe that champions economic liberalisation, a reformed social dimension and a more open rather than protectionist approach to trade with the rest of the world.

    The second observation is that while we must continue to learn from successes in other European countries, British values and qualities -particularly our outward looking internationalism that led us to pioneer free trade – have a great deal to offer in building the Europe of this new global era.  Indeed British qualities and values can play a leading part in shaping a Europe that must reform, be flexible, be competitive, be outward looking and build better trading and commercial relationships with the USA. So being fully engaged in Europe need not threaten Britain with subjugation inside an inward looking trade bloc but can mean Britain and British values playing a full part in leading a global Europe.

    A Britain that thinks globally not only builds from our traditions of openness and outward looking internationalism but builds upon huge British assets and strengths – the British Council itself, the BBC, the World Service, our universities and our long felt sense of obligation to the world’s poor.  And in addition to our well known proposals for international development  – including debt relief and the International Finance Facility for development – that represent a new deal between the richest and the poorest countries, I believe with you that we should build on the great success of the British Council internationally and do more to put one of our greatest assets – the English language, now the language of the internet and business – at the service of the world. 1.5 billion people now speak English. Our aim should be that that no one in any continent is prevented by poverty, exclusion or educational disadvantage from learning the English language.

    Thinking globally in an insecure world – and more important in the world since September 11th – requires us of course to take necessary steps to discharge a British government’s first duty – the defence of its citizens, the people of Britain.  And as we look forward to next week’s spending review, I will make available the resources needed to strengthen security at home and take action to counter the terrorist threat at home and abroad.  Those who wish to cut in real terms the budget even for security will need to answer to the British people.  We will spend what it takes on security to safeguard the British people.

    I started this lecture by asserting that the British way is to embrace not fear reform and the challenge of the 21st century is not just to express our Britishness in the evolutionary reform of individual institutions but to continue to evolve towards a constitutional settlement that recognises both our rights and aspirations as individuals and our needs and shared values as a community. But as we discuss how our evolving British constitution can best reflect our British values, what is very clear to me is that even if a significant section of the Conservative Party has ceased to see itself as the Conservative and Unionist Party, our Labour Party must stand resolute as the party of the Union. And indeed all decent minded people should, I believe, stand for and champion a Union that embodies the very values I have been discussing: a Union that, because it reflects shared values, has achieved – and will in future achieve – far more by us working together than we could ever achieve separate and split apart.

    So, in conclusion, there are good economic reasons for a new and rising confidence about the future of Britain.

    There are social and cultural reasons too for a new British optimism, a rising British confidence.

    We should think of Britain as a Britain discovering anew that its identity was never rooted just in imperial success or simply the authority of its institutions, nor in race or ethnicity.

    We should think of a Britain rediscovering the shared values that bind us together. Indeed the ties that today bind us are the same values and qualities that are at the core of our history…the values that should shape our institutions as they adapt, change and modernise to meet and master future challenges.

    So standing up for Britain means speaking up for British values and qualities that can inspire, strengthen and unify our country. And we can stop thinking about a post war Britain of decline – the Britain that was – and start thinking about the Britain that we can become: Britain, a great place to grow up in.

    A Britain believing in itself;

    A new era of British self confidence;

    Not just a Britain that is a beacon for economic progress but a Britain proud that because of its values and qualities, progress and justice can advance together, to the benefit of all.

  • Gordon Brown – 2004 Speech at the Joseph Rowntree Lecture

    Gordon Brown – 2004 Speech at the Joseph Rowntree Lecture

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, on 8 July 2004.

    Our Children Are Our Future – Joseph Rowntree Lecture

    It is a privilege to be here today to deliver the Joseph Rowntree Foundation Centenary Lecture and let me begin by paying tribute to one hundred years of service to our community by the Rowntree Foundation.

    Born out of Joseph Rowntree’s concern and Christian outrage about poverty and deprivation.

    Built by the dedicated commitment of people who had a vision of the world not as it was but as it could be.

    And today widely acknowledged to be at the heart of what I can call the nationwide crusade for justice for the poor, with not just an established and well deserved reputation for authoritative research that consistently shines a spotlight on the needs of our country’s families but a path-breaking role in finding practical solutions – that started with pioneering developments in housing and community regeneration and now extends into not just housing and community regeneration but innovative forms of care for the young, the  elderly and the disabled.

    So in a century of service, the Rowntree Foundation, always rooted in values of public service, always driven forward by ideas and often painstaking research, always a tangible national expression of compassion in action – taking its rightful place as one of the great British national institutions.

    So I want today at the outset to congratulate all of you – board, staff, supporters, campaigners – on your years of progress and achievement.  And I hope you can be proud that your concern – poverty; your mission – to shock the nation into action against poverty; and your driving ambition – the eradication of poverty — for far too many years a call for justice unheard in a political wilderness, is the ambition now not just of your organisation but now the ambition of this country’s Government.

    And let me also say today that I am humbled not just to deliver this lecture to this Foundation but to address a gathering of so many people who have served our communities and country with such distinction, men and women here today in this audience so distinguished in their own spheres of service  – charity workers, social workers, community activists, academics, researchers, NGO leaders.

    You have not only worked year after year to tackle social evils but have worked tirelessly in some of the most difficult circumstances, keeping the flame of compassion alive often in some of the least propitious times and in some of the darkest and most challenging corners of our community. So especially for those who have toiled at the front line – often with few resources and little support — let me place on record my appreciation of the service so many of you give – of the work you do, the contribution you make, the dedication you show and the real difference you make.

    Let us think back to the conditions Joseph Rowntree surveyed one hundred years ago. The first building blocks of the modern welfare state yet to be established, the Lloyd George People’s Budget still a few years away, but Victorian and Edwardian society starting to discover the full scale of poverty in their midst. And Winston Churchill – who went on to introduce the first minimum wage – appalled by the huge gap between what he called the excesses of accumulated privilege and the gaping sorrows of the left out millions.

    And about Joseph Rowntree we could have no doubt: an idealist not a dreamer; an enthusiastic reformer not a reluctant donor; and in his lifetime and through the foundation he created we can genuinely say that he led the way in four areas vital to the development of our social services and the fabric of our community life.

    First, his plea – and I quote – that we ‘search out the underlying causes of weakness or evil in the community rather than remedying their more superficial manifestations’.  You might call it tough love: his rightful insistence that we tackle the sources of poverty and not just their consequences, that we should focus on the eradication of the evil of social injustice and not just compensate people for its existence.

    Second, Rowntree’s insistence on an evidence based approach. Indeed his Foundation is a monument to one man’s conviction that the lives of countless fellow citizens can be improved by the intelligent application of knowledge and then policy to one of the greatest social evils and one of the greatest moral challenges of the day.

    And that led thirdly to an understanding of the multiple causes of poverty, and the multidimensional nature, of poverty. And although there have been many changes in the last 100 years – for when he began there was no sickness benefit, no state pensions, no unemployment benefit and no National Health Service – I am struck by the fact that the multiple challenges that Rowntree identified in his ‘Founders Memorandum’ still remain relevant today – the challenge of poverty itself, of bad housing, poor education, neighbourhood renewal.  And you could say that he understood what was meant by multiple deprivation long before the term was even invented.

    And finally it led him – and the Foundation – to pioneer an understanding of the life cycle of poverty.

    In 1904, Rowntree described that tragic life cycle – of poverty during childhood, poverty for parents when they had children and poverty during old age. A lifecycle of poverty broken only by the short periods where you were an adult before your children were born or an adult whose children had grown up and left home.

    And the striking truth about what we found in 1997 was how firmly and how widely this ‘life cycle of poverty’ had returned.

    And I believe that Rowntree would agree that addressing the multiple causes of poverty and the life cycle of poverty in our times, demands we be far bolder than the philanthropists of 1904.

    Let us recall that in 1942 – nearly 40 years after the Rowntree Foundation was set up and in response to some of its pioneering work – Sir William Beveridge identified five evils – want, idleness, ignorance, squalor and disease – which a new welfare state had to confront.

    But because we are interested in the potential of every person, our goal today – inspired by Rowntree – must be even more ambitious than the one Beveridge set us in 1942 when he listed his five evils:

    • Instead of simply attacking idleness and unemployment, our goal is the genuinely challenging goal of full and fulfilling employment;
    • Instead of simply attacking ignorance, our goal is the more ambitious goal of lifelong education for all;
    • Instead of simply attacking squalor, our goal is high quality affordable, housing for all and not just houses but strong and sustainable communities;
    • Instead of simply tackling disease, our goal is not just an NHS there when you need it but health and social policies that can prevent as well as cure disease and
    • promote good health;
    • Instead of just securing freedom from want – which meant sufficiency and minimum standards – our goal is the development of the potential of all to secure prosperity for all.

    And in addressing these great challenges, our objective must be to ensure not only dignity for the elderly in retirement and the chance for all adults to realise their potential but that every child has the best possible start in life.

    And it is on the needs of children and the challenges ahead that I want to concentrate my remarks on policy today.

    Equality of opportunity

    Our starting point – the same starting point as Rowntree – is a profound belief in the equal worth of every human being and our duty to help each and everyone – all children and all adults – develop their potential to the full —- to help individuals bridge the gap between what they are and what they have it in themselves to become.  It is that belief that for the Rowntree Foundation is a summons to act and a call to duty.

    And if in our generation we are to ensure each person has the chance to develop their potential, it is clear that as a society we must develop a more generous view of opportunity than the old idea of a single chance to get your foot on a narrow ladder – one opportunity at school till 16 – followed by an opportunity for a minority to go on to Higher Education — which for millions of people in Britain meant rejection by 16, that if you had missed that chance it was gone forever.

    It is simply a denial of any belief in equality of opportunity if we assume that there is one type of intelligence, one means of assessing it, only one time when it should be assessed and only one chance of succeeding. It is because neither potential nor intelligence can be reduced to a single number in an IQ test – and because ability should never be seen as fixed – that no individual should be written off at 7, 11 or 16 – or indeed at any time in their life.  Justifying a far richer and more expansive view of equality of opportunity and fairness of outcome: to recognise that people have a breadth and diversity of potential; that their talents take many forms – not just analytical intelligence but skills in communication, language, and working with other people; that these talents can develop and be nurtured not just at school but over a lifetime; and that it is our duty – our unceasing duty – to ensure that throughout the life cycle there are – in education, employment, our culture and our economy and society – not only real opportunities for men and women to develop their potential but that there is, the core of Rowntree’s philosophy, a special duty to ensure no one is left behind.  And what has always been right on ethical grounds can now, today, be seen as good for the economy too.

    In our information-age economy, the most important resource of a firm or a country is not its raw materials, or a favourable geographical location, but the skills, and the potential of the whole workforce. Indeed what matters most in the new economy is not what a company has as assets on its balance sheet, its physical capital, but what assets it has in the talent in its workforce. Its human capital.

    In the industrial age, the denial of opportunity offended many people.  Today, in an economy where skills are the essential means of production, the denial of opportunity has become an unacceptable inefficiency and brake on prosperity.

    Full prosperity for a company or country can only be delivered — and Britain properly equipped for the future – if we get the best out of all people. And that cannot happen without opportunity that taps the widest pool of talent.  In the modern world therefore policies for the good economy and the good society go together.  So even if we could not persuade some of our fellow citizens to support action against poverty out of a concern for social justice, these same people should be driven to support action against poverty as a means to ensuring economic prosperity.

    And once we take this view that what matters on both ethical and economic grounds is opportunity to realise potential, we are challenged not only to break down all barriers of race, sex, class, and other discriminations but to actively promote changes that will deliver opportunities in practice.

    And our ambition to eradicate child poverty is the most tangible expression of the bigger moral and economic purpose I have described – to eliminate poverty so that we can ensure that every child has the chance to realise their potential.

    Child poverty

    Yet the return in the last three decades of the life cycle of poverty – indeed the great and unacceptable concentration of poverty amongst households with young children – is the greatest indictment of  our country in this generation and the greatest challenge of all.

    The facts are that in the two decades before 1997 the number of children growing up in workless households – households where no one had a job – rose to almost 20 per cent. One in every five children did not have a parent earning any income from work.

    The numbers of children in low income households more than doubled to over 4 million.

    And you must never forget that the UK – one of the richest countries of the industrial world – suffered worse levels of child poverty than nearly all other industrialised nations.

    Indeed, anyone reading reports on the condition of Britain will be shocked by one straightforward but disgraceful fact.

    When we came into Government one in every three babies born in Britain were being born into low income households. Born not into opportunity but into poverty.

    This is the ‘Condition of Britain’ question we had to confront one hundred years after the Joseph Rowntree Foundation was set up.

    And it is the ‘Condition of Britain’ question still with us fifty years after Beveridge and the creation of the welfare state.

    Not only was child poverty endemic by 1997 but social mobility had slowed – in some respects, gone into reverse.  And while more room existed at the top, a child from the lowest social class was a quarter as likely to make it to that place at the top as the child from the highest social class.

    But during these years when child poverty grew so too did our understanding of all that we had to do to tackle child poverty – and in particular just how crucial the first months and certainly the first years of a child’s life are in determining life chances.

    Indeed recent research suggests that much of children’s future prospects can be predicted within 24 months of them being born.  Leon Feinstein has shown how psychological and behavioural differences varying strongly by social class can be seen in children as young as 22 months and continue to have a systematic – and increasingly significant – effect on employment and earnings patterns right through to later life. Research undertaken in the US shows that pre-school experiences in language and literacy are strong predictors of later development in language and literacy.  And the Effective Provision of Pre School Education (EPPE) project in the UK found that children who participated in some sort of early learning made significantly more progress than those who didn’t. Abigail McKnight concludes that individuals who experience childhood poverty tend to suffer a penalty in labour market earnings in adult life, and that the size of this penalty has grown over time.

    For we now also know from your research that an infant who then grows up in a poor family is less likely to stay on at school, or even attend school regularly, less likely to get qualifications and go to college, more likely to be trapped in the worst job or no job at all, more likely to be trapped in a cycle of deprivation that is life long…less likely to reach his or her full potential, a young child’s chances crippled even before their life’s journey has barely begun.

    I believe that action to eradicate child poverty is the obligation this generation owes to the next.

    Children may not have votes – or the loudest voices…or at least their voices are not often heard in our politics – but our obligation is, if anything, greater because of this.

    And we also need to understand that these children are not just someone else’s children and someone else’s problem.  For if we do not find it within ourselves to pay attention to them as young children today, they may force us to pay attention to them as troubled adults tomorrow.

    So in 1999 determined to ensure that each child has the chance to realise his or her potential the government set an ambitious long term goal to halve child poverty by 2010 and eradicate it by 2020.

    Tackling child poverty is, for us, the critical first step in ensuring that each child has the chance to develop their potential to the full.

    And as a first step, we have sought to reduce the number of children in low income households by April 2005 at least a quarter.

    So far, measured by absolute low income, 2 million children have been lifted out of poverty; so far too, measured by relative low income, half a million children have been lifted out. And I think there is general agreement that having allocated resources to raise our child tax credits for the poorest families, we are on track to meet our target of reducing child poverty by a quarter by April next year.

    But we are not complacent in any way nor will we relax our efforts or allow them to be stalled.

    The next step – our goal of, by 2010, reducing child poverty by half – is even more challenging and how we reach this goal is the subject of the remaining observations I want to share with you.

    I can tell you today that in the spending review next week we will set out the detail of the target for 2010 – to halve the number of children in households in relative low income compared to 1998.

    As many of you have proposed to us, next Monday we will also set out an additional target to halve the numbers of children suffering from material deprivation – children lacking basic necessities the rest of us take for granted.  And because we know from your research that the quality of housing is critical in tackling poverty, we will – as part of this new material deprivation measure – be monitoring the quality of a child’s housing conditions.  Acting, I believe, in the spirit of Rowntree.

    And so let me point you to the policy changes that I believe are now necessary if we are to meet this anti poverty target, the means by which we seek to develop the potential of millions of British children.

    Financial support

    First, you would expect me as Chancellor to talk about hard cash and I am happy to do that.

    We can make progress towards halving child poverty because between 1997 and this year, for the family with one child, child benefit has already risen from £11.05 to £16.50 – a 25 per cent rise above inflation.

    But while universal child benefit is the foundation, it is the introduction of the child tax credit – now benefiting six million families and 10 million children, and led in Government by Dawn Primarolo – that allows us, while giving more to every child, to give most to those who need it most –— and is thus the front line of our attack on child poverty.

    So with the addition of the child tax credit the nine out of ten families who would in 1997 have received just £11  in child benefits now receives more than twice as much – £27 a week.

    For the poorest families tax credits go even further: with one child under 11, financial support which was £28 in 1997 is now £58.22 – a near doubling in real terms.  And a family with two children under 11 can now receive in children’s benefits over £100 a week.

    Indeed, progress is being made to meeting our child poverty target because the poorest 20 per cent of families have received not 20 per cent of all additional money but over 40 per cent.

    And, as a result, while all families with children are on average £1350 a year better off now than they were in 1997, the poorest 20 per cent of families are £3000 a year better off.

    For the rest of this Parliament we will continue to uprate the child element of the child tax credit in line with earnings —- and I can tell you today that in future Pre Budget Reports and Budgets we will assess progress towards our 2010 goal.

    As a Government we have also come to realise that if we are to meet our child poverty goals and ensure that there is equality in opportunity but also fairness in outcome, assets matter as well as income. So to each child born after September 2002 an initial contribution to their own individual child trust fund of  £250, with twice as much – £500 – for the poorest third of children; and then again a contribution at seven and then perhaps at later ages to enable all young people to have more of the choices that were once available only to some.

    With the new child trust fund worth twice as much for the poorest child; with the child tax credit worth four times as much for the poorest child; and with five times as much for the poorest infant – our anti-poverty commitment is based on a progressive principle that I believe that all decent minded people can and should support: more for every child, even more help for those who need it most and at the time they need it most, equality of opportunity and fairness of outcome applied in new times and with tax credits the principal new means.

    And as we develop our policies on financial support over the coming years, I recognise from your research and policy proposals that we have not done enough in a number of important ways and that there are major issues which now need to be addressed including:

    • First the costs faced by larger families and the consequences for benefits and tax credits
    • And second the housing costs faced by the low-paid, and this requires us also to evaluate the way housing benefit interacts with the tax and benefit system and the impact of the pilots for paying flat rate housing benefit.

    Employment

    So looking ahead we will continue to address the issue of children’s benefits but we have also always been clear about the importance of the contribution of family employment to meeting our child poverty targets.   And of course we must get the balance right between supporting mothers to stay at home, particularly in the early years, and creating opportunities for employment.

    Again it is because of tax credits – which create a new tax system whose rates start at 40 per cent at the top but go to as low as minus 200 per cent for the lowest income earners – that a lone parent with one child working 35 hours at the minimum wage is now £73 a week better off in work than on benefit.  And a couple with one child and one parent working 35 hours at the minimum wage is now around £38 a week better off in work than on benefit.

    Because the starting wage for the unemployed man or woman returning to work is typically only two thirds of the average hourly rate, the child and working tax credits have been designed not just to help people into work but to help people in work move up the jobs ladder and into higher incomes. Under the old system of family credit, 740,000 households faced marginal tax and benefit withdrawal rates of over 70 per cent, now the new credits have cut this figure by nearly two thirds, helping people keep more of every extra pound they earn.

    In total, 1.8 million more people are in jobs now than in 1997, with unemployment reduced to its lowest level in 30 years. But if we are to meet our child poverty targets we must advance further and faster to full employment in every community and we must make it a priority to reach the still large number of households with children — where no adult works.

    And of crucial importance in meeting our child poverty target for 2010 will be employment opportunity for lone parents.

    It is a striking fact that lone parent households contain a quarter of all children but account for nearly half of those in poverty.

    As a result one and a half million of the country’s poorest children are today living on benefit in lone parent families where no one has a job.

    Since 1997 250,000 more lone parents have gone into work.

    Because of the new deal the minimum wage, the working tax credit and other initiatives, the lone parent rate of employment in the UK has increased to 53 per cent.

    But in the US lone parent employment is more than 60 per cent, in Sweden above 70 per cent and in France in excess of 80 per cent.

    Our target is 70 per cent lone parent employment by 2010. And let me explain the significance of this ambition.

    If we meet our target to raise lone parent employment, this one success alone could reduce the number of British children living in poverty by around 300,000. And if we went even further to French levels we could reduce the number of children in poverty by a total of approaching half a million.

    Now research shows most lone parents would like to combine paid work with the vital job of being a parent. But they face real barriers to doing so.  And those who work with lone parents – and lone parents themselves – have rightly called on us to do more to help them get the skills they need for work and to ease the transition between income support and paid work.

    So while all lone parents are now invited in for work-focused interviews.  We are also piloting new lone parent ‘work discovery weeks’ – run by employers in London, Glasgow, Liverpool, Manchester, Leeds and Birmingham – that are providing introductory and preparatory courses for work in some of our best known retail stores, hotels and companies —– and backed up by help with childcare.

    Where local employers identify a demand for skills lone parents in these six cities also have access to free NVQ level 3 training – and funds to buy work clothes or equipment.

    And because we recognise that the time of transition from benefits to employment can be difficult, from October lone parents will benefit from a new job grant of £250 when they move into work and they will enjoy a four week extension of housing benefit.

    So what does the success of our recent measures mean in practise for tackling child poverty? It means that with the new help with housing benefit, lone parents on a typical rent of £50 a week and working part time will receive at least £217 a week for around 16 hours work a week.

    The effective hourly rate is not the minimum wage of £4.50 but £13.50 an hour – making them far better off working part time than not working at all.

    And so we have come to recognise that central to tackling child poverty – as well as to the importance of helping families balance work and family life – is the provision of adequate child care.  And while we have since 1997 created over a million more child care places, the greatest help for low income families has been the third element of tax credits that we have introduced — the tax credit for covering the costs of child care – up to £95 each week for families with one child in qualifying childcare and up to £140 for those with two or more children.

    When we started in 1997 it was claimed by just 47,000 families, it is now benefiting 320,000, with maximum help given to lone parents.

    And while we ensure that by 2008 nearly 2.5 million children a year will have access to good quality childcare, again for poor families the next stage in the extension of the child care tax credit is of greatest importance – from April 2005 extended to a wider range of eligible childcare including, in some cases, at home.   And the tax credit will be supported by a new incentive for employers — to give their employees up to £50 a week, free of income tax and national insurance, to help with childcare costs.

    Public services

    So tax credits have been and will continue to be the key to tackling child poverty. But as a government we also have a duty and role to play in encouraging the development of the potential of Britain’s children through the provision of high quality public services – and Bruce Katz has this morning shown why one of our priorities must be to drive up the performance of public services in our most deprived neighbourhoods and thus break long established cycles of deprivation.  And I do not underestimate the critical role that new investment in housing can play.

    Of all the services that contribute to the development of potential a good education – the subject of the government’s five year plan today – is clearly the most fundamental. So as I announced in the budget we are investing over 3 years an additional £8.5 billion in education; raising average spending per pupil from the £2500 a year we inherited to £5500 by 2008 —- and, as a sign of our commitment to tackling disadvantage, by even more in the 1400 schools that benefit from our extra support for leadership and excellence to combat deprivation.

    We have, indeed, a long way to go in ensuing for today’s poor children a decent start in life but it is important to record that the greatest improvement so far in reading, writing and maths has been in the primary schools of the poorest areas.  And I can tell you that the next stage is to help at an early stage the very pupils most in danger of falling behind — and with extra money for their books, and their classrooms equipment and staffing drive up their literacy and numeracy.

    I can also inform you that secondary schools with more than 35 per cent of their 14 year olds eligible for free meals are now making the biggest gains in maths and science results at key stage 3.  Indeed the number of secondary schools with less than 25 per cent of their pupils achieving 5 or more good GCSEs has fallen from over 600 in 1997 to 224.  And today’s five year plan sets out our next steps – with the very pupils most in need offered more personalised learning including new vocational options and greater access to IT.

    I can tell you also that in the spending review, there will be new, more challenging floor targets for the poorest areas. And as part of the review of the local formulae used to distribute schools funding – due to take place later this year – I would like to identify even more effective ways to target resources at tackling deprivation: measures to help children in the bottom income quintile catch up, particularly in primary school, and measures to enable schools to meet the higher costs of educating children from poorer backgrounds who may have lower levels of early educational attainment and who may have far less parental support.

    Tragically Britain has, for decades, had one of the poorest staying on rates of the industrialised world. In Britain more young people leave school early, more leave without qualifications and more never reappear in the world of education.

    So again to tackle both poverty and lack of opportunity – and to seek to tackle perhaps an even greater challenge, the poverty of aspiration amongst children and young people and their parents – we have reformed the careers service, introduced summer schools, encouraged better links between schools and universities and colleges.  And we have piloted an education maintenance allowance:  up to £1500 a year on top of child benefit and the child tax credit for those young people who need financial help to stay on in education and get the qualifications they need. And so successful has the allowance been in raising staying on rates that from September this year it will be available nation wide.   And as it goes nationwide be made available not just for school and further education courses but for training too – once again helping all young people, but doing more for those who need help most so that no child is left behind.

    Services for under fives

    I said at the outset that while we are committed to social security from the cradle to the grave, too many children have already lost out within months of being born – condemned to poverty because not enough has been done to help them from the cradle to the nursery school.

    Indeed for fifty years while there was undoubtedly much innovation in the voluntary and charitable sector, welfare state support for the country’s youngest children consisted of maternity services, vaccinations and a requirement to appear at school at age 5.

    Yet while the provision remained inadequate the evidence grew that the first four years of a child’s life are critical to their personal development; that children who went to nursery or other early education before they attended school were likely to have significantly improved social, emotional and cognitive development; that the longer children attend pre-school – and the higher the quality of the service – the greater the positive influence; and that such intervention was particularly beneficial for the poorest children.

    And so it is clear that a strategy of counteracting disadvantage must begin right from the start of a child’s life and that the earliest years – once the lowest priority — are now rightly becoming among the highest priority: not just the biggest gap in provision and next frontier for us to cross, but one of the single most important investments the welfare state can make.

    The sure start maternity grant – once just £100 – has been raised to £500, a five fold rise in five years.

    Reversing a long standing policy that more child benefits went to older rather than younger children, we doubled the child tax credit for the first year of a child’s life.

    To help parents stay at home with their children, maternity leave and pay has been substantially extended and paternity pay now exists for the first time.

    And earlier than planned nursery education is now available for all 3 year olds as well as all four year olds.

    Now in the past to identify a problem – the need to expand provision for infants from birth to three   – would probably have led simply to the creation of a new state service.  But I believe that what today is happening in the area of under five provision shows how what we do – in the spirit of Rowntree – is based upon evidence; how the best approach is multi-dimensional – across the services – and the range of provision mixed; and how, instead of a narrow focus on what central government can do, voluntary and community organisations, and parents, and government, local and national, through not just one service but a range of services – child health services, social services, and early learning –  are now all part of the solution.

    I often say that sure start – led by Charles Clarke, David Blunkett and Margaret Hodge – is today one of the best kept secrets of government, but it is also one of the unsung successes of the voluntary and community sector.

    And there are now over 500 sure start or children’s centres providing services for 400,000 children across the country, including a third of all children under four living in poverty.  And you have only to visit local sure start projects – as I did in Bristol a few weeks ago and then in Birmingham last week – to capture a very real sense of the difference they are making: and already evidence from individual projects in some of Britain’s most deprived areas shows that sure start is having a notable effect on children’s language development and social skills, and on the interaction of parents and their children.

    What is then exciting about sure start and the approach it represents ?

    I believe that what is exciting is what Rowntree himself would have approved of – and what Rowntree Foundation research has pointed towards.

    First, a co-ordinated approach to services for families with young children, tackling the multi-dimensional causes of poverty – physical, intellectual, emotional and social – by adopting an integrated approach with childcare, early education and play, health services and family support at the core of sure start.

    It reflects a growing recognition that housing, health, transport social services, youth and many other services are vital in tackling child poverty and developing young people’s potential.  And the new public service agreements we will be publishing alongside our commitment to new investment for these services will reflect this.

    Second, the emphasis within this approach on health and inequality highlighted by today’s report of the health care commission.  And later this year there will be a new Public Health White Paper – refocusing our attention on preventive health – which will emphasise once more the importance of tackling the unacceptable health inequalities – including infant life chances – which distort our country.

    Third, sure start is emphasising the central role of parents in tackling child poverty – and that is why parents are enlisted in the very running of the sure start projects.

    We must never forget that it is parents who bring children up, not governments, and our emphasis is on the opportunities now available to parents and the responsibilities they must discharge.

    So we are not only increasing the financial support available to parents – and exploring options for future further increases in maternity and paternity pay – but making available wider support for parents, including expanding parenting classes and providing access to practical parenting advice in a wider range of locations.

    Fourth, the central role of voluntary community and charitable organisations from mothers and toddlers groups to the playgroup and child care movement to vast and impressive range of specialist organisations throughout our country. It is a humble recognition of the limits of government – that child poverty cannot be removed by the action of government alone but by government, working with parents, voluntary charitable and community organisations – and a celebration of the vital role of the voluntary and community sector in every city and town of our country. And let us not forget that alongside traditional voluntary organisations – like the churches and uniformed organisations for young people – that have been declining in numbers, there has been a mushrooming of young mothers groups, playgroups, and groups and clubs associated with children locally and nationally.

    And let us be clear about the radicalism of our approach.   For sure start also enacts an important new principle into action – that services for the under-fives not only involve voluntary and charitable action at a local level – even more so than we have done in the past – but either in partnership or in sole control, the very running of these local groups can be and is being passed to community control.

    And it is a recognition that, we must all accept our responsibilities as parents, neighbours, citizens and community leaders, in the battle against child poverty.

    And of course there is a fifth innovation:  the far greater emphasis on early learning – so early that it can start with the local school contacting the mother not in the months before the child’s fifth birthday but just a few weeks after the child is born – backed up by innovations like Bookstart offering children the books they might not otherwise have, to start in their first months to learn to read.

    And we can see now how combined with the improved income support for the under fives that I have described, the additional cash resources for early learning and the support for the specialist groups – many represented here – that deal with disability, special needs and other challenges, a new more comprehensive approach not just to tackling child poverty but to developing the potential of every child is taking shape.

    And as we approach the spending review next week and advance to the pre budget report, I can tell you that what I have described this morning can only be the start of what we have yet to do.

    Building on sure start, the next stage is to fund the creation of new children’s centres across the country – again providing a combination of good quality childcare, early years education, family support and health services.  By 2006 650,000 children will be covered by sure start or children’s centres. And there will be new funding – despite our other representations – to ensure 1700 children’s centres by 2008 – one in each of the 20 per cent most deprived wards in England, as we advance towards our goal of a children’s centre for every community.

    But sure start – and related services – point the way for a new agenda for services for young children:

    • Greater encouragement for local initiatives and community action in the war against child poverty;
    • Offering government money to back non-government initiatives to tackle disadvantage;
    • Partnership with both the biggest voluntary and community organisations and the smallest;
    • The emphasis on prevention not simply coping with failure;
    • Greater parental involvement in the running of services.

    And anyone who like me has attended a sure start conference – and seen the dynamism, energy and determination of parents, volunteers and carers in action – can begin to understand the transformative power that organisations from the playgroup movement to the child care campaigns can have. And I look forward to the little platoons in our communities becoming veritable armies demanding we do more.

    So new finance, like tax credits

    New initiatives, like the new deal for lone parents

    New dimensions, like support for child care

    New services, like sure start

    New approaches, whole services  managed by the voluntary sector

    New directions, engaging parents in the running of programmes.

    All weapons in the war against child poverty

    All evidence that parents, voluntary organisations and government can acting together make a real difference

    All evidence also that informed by knowledge, working with the best of caring organisations, public action can transform young lives.

    Go to a sure start programme, as I did a few days ago – and see the bright new investments that are starting to change the face of some of the most deprived areas of our country.

    Listen to a mother, once feeling trapped in her home, telling you how sure start has introduced her to other mothers with similar stories to tell.

    Hear the views of children of lone parents – telling of their pride that their mother now has a job.

    And hear the responses of parents on the child and working tax credits – describing how what they can spend on their children has been raised by £50 a week.

    And so I tell you. After seven years of government I am not less idealistic but more idealistic about what we can achieve working together.

    Because we now have evidence of what can be done by sure start in some areas of the country, we want to apply the lessons to all parts of the country. And because we have evidence of the good that is done for some children, then we want to extend these opportunities to all children.

    And what started, for us, seven years ago as an article of faith about what might be achieved is now a conviction based on clear evidence about what can and must be done.

    Because what has been done shows us what more can be done, because the evidence of small successes shows what even larger successes are possible, it must make us more even more ambitious to do more.

    So my experience of Government has not diminished my desire to tackle child poverty but made me more determined to do more.

    For what has happened so far does not begin to speak to the limits of our aspirations for developing the potential of Britain’s children, but challenges us to learn from the changes now being made and strive in future years to do even more.

    So on Monday I will be able to announce the next stage in our policies for tackling child poverty and for helping the development of the potential of every child – and I believe as a country we are ready to do more to tackle old injustices, meet new needs and solve new challenges.

    But what we can achieve depends upon the growth of a nationwide sentiment of opinion – indeed, a shared and concerted demand across communities, across social classes, across parties, across all decent minded people – that the eradication of child poverty is a cause that demands the priority, the resources, and the national attention it deserves.

    It is not usual for government to welcome the growth of pressure groups that will lobby, demonstrate, embarrass, expose and then push them to action. But I welcome the new alliance for children — the broad coalition of community organisations, voluntary and charitable sector determined to push further to end child poverty.

    For the emerging evidence – and the growth in a nationwide public opinion – emboldens me to believe it can indeed be this generation of campaigners, charity workers, child carers, sure start organisers, working together, that will right the social wrongs that impelled Joseph Rowntree to action and ensure every child has a fair start in life.

    So let us continue to follow the lead given by the pioneers who brought the Rowntree Foundation into being.

    And inspired by a generation of reformers like Rowntree who had a vision; driven forward – as the Rowntree Foundation has always been – by the evidence of what is happening around us; never loosing sight of the vision that inspired a whole generation; our eyes fixed firmly on the goal that if every child has the best start in life we can build a better Britain.

  • Gordon Brown – 2004 Speech at the CBI Annual Conference

    Gordon Brown – 2004 Speech at the CBI Annual Conference

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, in Birmingham on 9 November 2004.

    In saying what a pleasure it is to be invited at the first conference presided over by your new President – John Sunderland – and here on the same day as my friend the Finance Minister of France Nicolas Sarkozy, let me first of all thank you for ensuring that in a harsher, more competitive and more uncertain world – which has not been easy for any business in any continent anywhere – Britain, thanks to your efforts and those of your companies, has weathered the storm of the recent world downturn. And the whole country recognises and thanks you – the business leaders of our country – for your hard work, your resilience and your courage to change.

    And I recognise that having come through, in the last four years, an IT collapse; an American, Japanese and German downturn; the stalling of world trade – itself stalling vital investment decisions you wanted to make – every company, every country, now finds that instead of the much hoped for calm, all of you are having to cope with the doubling of oil prices; rising world commodity prices; uncertainty in the Middle East; large current account imbalances between Europe, Asia and America; and the changing values of dollar, euro and pound and thus uncertainties about the strength and durability of the world recovery.

    And perhaps even more challenging, every company and every country is, at the same time, having to face up to far reaching and fundamental global changes in technology and trading patterns – including the rise of Asia. Changes that are lasting and profound.

    Within twenty years half the world’s manufactured exports could come from developing countries.

    Already China is exporting more than France, Italy and Britain.

    Asia is exporting almost as much as the euro area.

    Within a decade 5 million US and European jobs could be outsourced.

    And all the time China and India are upgrading their science and skills with India and China today producing 125,000 computer science graduates a year and Britain only 5,000.

    Now at no point in our past history could Britain ever afford the old short-termism and the old complacency. At no time could Britain afford to duck or postpone fundamental long term choices about our future. Indeed at the root of our national economic decline in the last century was a British failure to face up to difficult long term decisions.

    But ever more so in this more competitive global era, to fail to confront, to complacently side step, long term decisions would mean Britain left behind. So in an era where nations will rise and fall at speed – and where no nation, however prosperous today, can take tomorrow’s prosperity for granted – Britain cannot afford ever again to resort to the old short-termism, whether pre election short-termism or any other form of short-termism.

    And to those who want to postpone long term decisions and tell us that there should be no change without security, we all know the answer: there can be no security without change.

    My message today is that there are important long term economic choices about our economic destiny and about Britain’s priorities which we need to make together and which cannot be resolved by resorting to short term initiatives, or even decisions that are just for one Parliament. Long term choices and decisions about our economic future as a nation which – because these decisions need to be made, acted upon and followed through on a sustained basis – require a consistency of purpose and direction in the British national interest that goes beyond one year or even one Parliament and involves seeking agreement and shared purpose across all sections of British society.

    And so the choices we will address in our Pre Budget Report are:

    – will we relapse as a country, drifting back to the era of fiscal irresponsibility and short termism or will we have the strength to continue to entrench monetary and fiscal stability for the long term?

    – will we have the strength not just to talk about enterprise but to provide the incentives, the rewards for risk and agree the changes in education necessary to make Britain’s entrepreneurial culture match the enterprise of the USA?

    – will we have the strength to resist protectionism and take the long term decisions to break down trade barriers around the world and build the best trading relationships with Europe and also with America and with China, India and Asia?

    – and on both the two drivers of modern economic success – innovation and skills – will we face globalisation by systematically doing what every advanced industrial nation must do: not only investing to upgrade both science and skills but addressing all the barriers – tackling the old inflexibilities, the old vested interests – that stand in the way of Britain being the best place to locate for skills and for R and D and make Britain the best country to grow up in, to start a business, to build a successful life?

    And underlying these challenges is an even more fundamental decision: to meet and master these challenges of the global marketplace my mission is to build a shared national economic purpose, a patriotic vision – shared by the British people – of Britain’s economic destiny as a nation of aspiration and ambition.

    And let us be clear about the economic cost of not building this shared purpose. There’s no doubt that America faces the challenges of globalisation with a strong sense of itself as a country of liberty, enterprise and opportunity for all. And when Mr Sarkozy speaks today he will show that France has a very strong sense of national destiny as it faces the decades ahead. So too does China and every Asian economy I visit.

    And I believe that working together, we can here in Britain forge a shared British economic purpose that, embracing all sections and regions and nations of Britain, can give us, the British people, the long term direction and determination to make the difficult choices about priorities in a global age, and summon our great country to greater achievements in the future.

    Stability

    Let me give an example of how a shared national purpose can be built.

    When we made the Bank of England independent, and built a new monetary and fiscal framework which required us to freeze public expenditure for two years and radically cut our national debt, I remember people saying we would find it difficult to get trade unionists, workforces and managers in all the regions, as well as the other political parties, to accept the toughness of our monetary and fiscal rules and the consequences of Bank of England independence for, for example, wage expectations. But over the last seven years we have shown that with economic management based on clear objectives, proper procedures and on transparency and accountability, you do build trust and a shared purpose that gives business confidence to invest and families confidence to plan ahead.

    And the question now is: can we build a shared economic purpose not just around stability for a few years but around entrenching long term stability?

    I think most businesses would acknowledge – as Digby Jones and John Sunderland have done – that because of a proactive monetary policy, Britain not only acted quickly – with nine interest rates cuts – to avert recession but we have also acted pre-emptively on the upturn – with five interest rate rises.

    In any other decade a doubling of oil prices would have led to expectations about higher inflation, and then higher wage demands. But today the British people know that our inflation target and stability will be achieved.

    The Government will respond to the long term savings and investments issues raised by Adair Turner whose Pensions Commission reports in the next year. But on fiscal policy generally I can tell you that we will learn from, and not repeat, the mistakes of the European Growth and Stability Pact – with its focus on an annual, not long term, perspective and its concern for short term deficits not long term debt.

    Remember that in 1997 even at a time of growth we froze spending so that we could rebuild our public finances for the long term on the basis of low and sustainable levels of debt.

    In 1999 at the time of the spectrum sales which raised £22 billion we resisted the demand even from some in the business community to spend that £22 billion as if it were a windfall and instead we further cut the size of our national debt.

    At the time of the world downturn in 2001 we ensured that fiscal policy supported monetary policy.

    And I hope you will agree that – looking back on the British system of fiscal discipline over seven years – we have, at each point in the economic cycle, taken the right long term decisions for business and the economy, which has helped our country ensure that unlike America, Germany, Japan and the euro area growth was maintained free of recession in every quarter.

    And in the next few years it is my determination we again take the right long term decisions at each point in this and the next cycle.

    So as we look forward I can also tell you that as we slow the rate of growth of public spending we will, while financing all the nation’s key investment priorities – including education, health, transport and law and order – continue to meet all our fiscal rules in this cycle and in the next.

    And today in 2004 I can tell you – as I told my own Political Party Conference – that I will resist demands from wherever they come, such as on linking pensions to earnings where this would put at risk the fiscal position today and in the long term. Such short-termism is not the best way forward.

    Today almost every one of our major competitors is grappling with high fiscal deficits and fast rising levels of debt. But at every point we have been able to meet our fiscal rules and as long as I am Chancellor we will meet all our fiscal rules – with stability yesterday, stability today, stability tomorrow.

    Enterprise

    The shared national economic direction we have been building is founded on stability, but must be driven forward by building the same national purpose around a Britain which values and celebrates our enterprise, creativity, dynamism and entrepreneurial flair.

    There are 300,000 more businesses since 1997 thanks to you and your colleagues. But let us be honest: today our rate of business creation is still half that of the USA and if we had the US rate we would have 1.8 million more businesses in Britain. The long term choice for Britain is whether we are serious about the incentives and rewards for risk, and about the changes in the school curriculum and in education generally necessary to create a long term revolution in attitudes to enterprise and wealth creation.

    Let me give you one example of a policy change by our party that shows how we are already going beyond the old divisions and helping to forge a shared national consensus on enterprise culture – capital gains tax.

    Although not quite as public a symbol as Bank of England independence – but dramatic in terms of Labour’s history none the less – from its first year a Labour Government even with other priorities including the NHS cut capital gains tax – now down from 40 pence to 10 pence for long term business assets – because rewarding enterprise is, for us, central to a renewed British national economic purpose.

    That is also why a Labour Government cut corporation tax from 33 pence to 30 pence and small business tax from 23 pence to 19 pence; and why in the last budget we announced the end of the last corporatist subsidies, the permanent on going industrial subsidies in coal, steel and shipbuilding; are resolved to sell off all remaining government shareholdings in private utilities; and in Europe are demanding a wholesale reform of wasteful state aids that are distorting competition.

    But the renewed national economic purpose is not just getting rid of the old but building day-by-day an enthusiasm for enterprise in every region of the country. So in what areas, building on stability, can the Government do more to break down the barriers to enterprise?

    Planning: we will help business by making planning quicker, more flexible and more responsive to the long term needs of the economy generally.

    Tax: we will continue to look with you at the business tax regime so that we persuade people that it is in Britain’s interests to make and keep the UK as the most competitive place for international business.

    And on regulation, let us accept this is a problem raised in every industrial country – where there is a tension as you know between the flexibility you need and the standards the public request. And I tell you that it is in the national interest that we continue to resist inflexible barriers being added into European directives like the agency workers directive and the working time directive.

    I can also tell you that in the Pre Budget Report we will do more to reduce regulations in Britain in the area of inspection, audit and enforcement regimes and I can also say we have agreed with the Netherlands, Luxembourg, Ireland to put regulatory reform at the heart of our EU Presidencies through to 2005, putting every costly and wasteful EU regulation to a competitiveness test.

    And in budget after budget I want the nation – and politicians on all sides, trades unionists and managers – to face up to the hard choices – whether it be in the tax system or in breaking down old barriers – to do more to encourage the risk takers, those with ambition, to turn their ideas into reality and make the most of their talents.

    In the past it has been assumed you could have enterprise but at the cost of fairness – or fairness but at cost of enterprise. So in Britain for decades parties that emphasised enterprise at the cost of fairness vied with parties that emphasised fairness at the cost of enterprise. But today I believe, as I told the Labour Party Conference, we can forge a new consensus – government and business together – that enterprise open to all is the right way forward for communities and our country as a whole.

    In particular, we need to do more to give young people the confidence and support they need to consider a career in business.

    So in future not just a few but all pupils before they leave school will enjoy not just work experience but enterprise education too.

    We are setting up a National Council for Graduate Entrepreneurs.

    With the visit of US Treasury Secretary John Snow next week we plan to form a new transatlantic partnership for encouraging enterprise with the US administration.

    On 4 February next year the Treasury will host a conference of business leaders from across the world, and led by Alan Greenspan, who will address it to discuss how faced with rising economies like China and India Britain can become more entrepreneurial.
    And driving forward national awareness of enterprise opportunities for all, the first ever national Enterprise Week next week will encourage, inspire and excite young people about enterprise – and our annual city of enterprise competition will encourage and reward those with ideas who start up their own businesses – as we build a new shared economic purpose in Britain that starts in our schools and that extends even to communities with today the highest unemployment and the lowest rates of business creation, that enterprise open to all – a deeper wider entrepreneurial culture – is the way forward for Britain.

    Science

    In a global restructuring that focuses advanced industrial nations away from low skill, low tech products and processes to the technology driven and high value added, Britain will not only have to be enterprising but will only have a competitive edge if we develop the most technologically intensive and science based industries and services.

    Yes: with 1 per cent of the world’s population we have over 11 per cent of the world’s most cited scientific papers and the industries growing fastest are those that are also investing heavily in R&D. But for decades – as a share of GDP – science investment has been lagging behind our major competitors, now even behind Korea and Singapore.

    And the long term choice we cannot duck is whether we have the strength to take all the necessary steps – financial, regulatory and cultural – to make Britain, home of scientific discovery in the industrial revolution, the country where scientific invention is fully valued and celebrated and, as we break with the short-termism of the past, the best place in the world for scientific enquiry and for R&D.

    So I propose we build on the public private partnership between government and business that created the ten year framework for the development of science and the extra £2.5 billion pounds investment that will further develop university labs and equipment and – now even more a priority – invest in graduate and post graduate engineering, science and technological education and research. So with the ten year framework our starting point, we are ready to work with you to build on our successful research and development tax credit to create the best incentives and make Britain the best place for R&D.

    But we need to do more. By showing we have properly balanced the need for scientific advance with ending unnecessary suffering we must protect legitimate science on potentially life saving research from being under constant attack – and thus build a British consensus that, building on our great scientific traditions celebrates the responsible development of science and rewards scientists and inventors for their creativity and their pivotal contribution to the next stage of British economic success.

    Skills and Labour Market

    Even bigger choices lie ahead of us in ensuring the proper response to globalisation with both the flexibility companies need and the skills individuals require.

    Yes, today 2 million more are in jobs. But the unemployment and worklessness rate among the unskilled is not 5, 10 or 15 per cent. 50 per cent are not in work. Each year India and China produce 4 million graduates compared with just over 250,000 in Britain. And if we are to succeed in a world where offshoring can be an opportunity, then the acquisition of skills by all – our mission to make the British people the best educated, most skilled best trained country in the world – must become the shared desire and determination of the whole British people from parents and teachers to management and trades unions.

    At root the issue raised by global change is whether, to achieve this aim, we have the vision and resolve to construct a new long term partnership between employer, employee and government in which in return for the flexibility you as employers need, we ensure that investment in education that individuals and the country require to prosper.

    I propose that in the next year we work together in a long term plan to make Britain the best educated, trained and skilled workforce prepared for all challenges ahead.

    The Government ready to move resources from paying for unemployment to investing more to achieve higher standards in our schools, colleges and universities, and – as Charles Clarke is keen to discuss with you following the Tomlinson Report – to improve the quality of apprenticeships and the education of 14 to 19 year olds.

    Employees demonstrating greater flexibility – with the minimum wage and tax credits already underpinning earnings, with our advances in childcare underpinning family life, and with the Employer Training Pilots giving greater help in acquiring skills.

    And, alongside this flexibility, small medium and large employers prepared to invest in skills training as, together, we build a progressive national consensus around an agenda which shows that flexibility and fairness advance together – neither the old American or the old European way but a modern British way to high skills for the global age.

    Trade and internationalism

    And because our economic success depends upon the openness and vitality of our trading relationships, the long term question is whether Britain can both resolve the European question for this generation and whether we can use our advantages in – if Mr Sarkozy will excuse me – the English language, our belief in free trade and openness to the world and our historic global reach to make us a bigger global player in every part of the world.

    Today only 1 per cent of our exports go to China and only 1 per cent to India and so it is because we recognise both the urgency and the benefits of better trading relationships with China and India that:

    – we are not only pressing for a conclusion to the WTO talks but examining UK Trade and Investment’s priorities for the long term;

    – the UK Financial Dialogue with China will be held in December this year and will be extended to India next year;

    – Britain is promoting a year of British science in China, launched by Lord Sainsbury in January;

    – and we are implementing the new science and engineering graduates scheme extending work permits to new graduates not least from China and India.

    I am pleased Mr Sarkozy is with us today – and I have valued working with him across the political divide.

    It allows me to emphasise as someone who is pro Europe and pro reform that Britain benefits from being part of the European Union, the biggest and most successful single market in the world.

    And Britain will benefit from a Europe that reforms.

    And instead of a Britain still characterised by doubts and hesitations about our role in the world, grappling uncertainly with issues of integration in a European trade bloc.

    Instead of a Britain seeing the battle as Britain versus Europe, not Britain part of Europe.

    Instead of thinking the European choice is between non engagement and total absorption – a Britain failing to see we can lead the next stage of Europe’s development.

    I believe we can build a pro European consensus in Britain.

    Why do I say this? Global economic change demands Europe moves from being a Trade Bloc Europe to being a Global Europe – outward looking, reforming and open, with a programme of liberalisation, a new employment dimension, the opening up of trade and commerce not least for the USA, and a modern monetary and fiscal regime.

    And I believe that we have already begun to show – in the way we have successfully resisted the savings tax and tax harmonisation – that the best contribution pro-Europeans committed to Britain leading in Europe make to the cause of Europe is by ensuring that in Europe we face up to rather than duck these difficult decisions about economic reform, an approach that is gaining support from other European countries.

    Our aim is a Europe that instead of being a trade bloc looking inwards on itself, looks outwards, engages with the rest of the world, rejects semi federalist ambitions and reforms and liberalises to meet the global economic challenge. And it is around this pro-reform, pro-global approach – that is clearly in the British interest – that perhaps the first truly national consensus on Europe can develop. Britain feeling confident rather than hesitant about its important role in Europe’s development.

    Conclusion

    So here are the elements of a shared national economic purpose, a consensus for progress, to which I believe the whole country could subscribe.

    Building on our historic qualities – openness to the world, our scientific traditions, our world class universities.

    A Britain united as it takes the long term decisions for stability.
    A Britain where the whole country is committed to enterprise and flexibility.
    A Britain that invests in science and infrastructure, and in education and skills, and believes in its future as a scientific and creative nation.
    A Britain that looks outward to Europe and the world.
    A Britain that leads Europe to an open, flexible and global future.

    And if we can build a British progressive consensus around these long term economic decisions, then globalisation is indeed made for Britain and British prosperity. And we, Britain, can – equipped for the future – be, just as Britain triumphed in the industrial revolution, one of the global economy’s greatest success stories and look forward to a century of British achievement.

  • Gordon Brown – 2004 Speech at the Enterprising Britain Policy Summit

    Gordon Brown – 2004 Speech at the Enterprising Britain Policy Summit

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, in London on 15 November 2004.

    Let me say first of all that when a year ago we discussed creating Britain’s first ever national Enterprise Week, no one could have foreseen its scale:

    • the engagement of 427 organisations and in every region and nation of the UK;
    • the 1086 events celebrating enterprise in schools, colleges, universities, workshops, local community centres, even football clubs;
    • and the range of the innovative ventures that are flourishing from Inner City 100, young entrepreneur of the year competitions, mentoring classes, networking events, enterprise roadshows and workshops with established entrepreneurs.

    And so at this the first event marking the start of Enterprise Week let me begin by thanking all of you – businessmen and women, trade unionists, teachers, think tanks, voluntary organisations, regional development agencies, policymakers from central and local government – for your own contribution to national Enterprise Week. That an idea that started with only a few people and little financial support should become in such a short time such a big campaign involving thousands across the country is itself a tribute to the spirit of enterprise in this country.

    Your successes, your achievements and your enthusiasm for this campaign – which I share – clearly show that if young people are given the chance they will respond and seek to turn their ideas into reality.

    And in particular I want to acknowledge the tireless work done by Kevin Steele, George Cox and all the individual members of Enterprise Insight – including the British Chambers of Commerce, CBI, Institute of Directors and Federation of Small Business – who have come together for this week and who have created not just an organisation but a movement that I think will go from strength to strength in years to come.

    Our starting point is the importance of enterprise to the future of our country.  For my mission for Britain – indeed the key to our future economic success and social cohesion – is a country where enterprise is truly open to all, a nation of aspiration and ambition united in encouraging and celebrating innovation and enterprise.

    More than a century and a half ago John Stuart Mill one of our greatest philosophers defined enterprise not narrowly in terms of finance or commerce but as widely as the theme of Enterprise Week – ‘Make your Mark’ – does.

    He defined enterprise – and I quote – as:

    ‘The desire to keep moving…to be trying and accomplishing new things for our own benefit or that of others.’

    He spoke of:

    ‘The striving go ahead character of England and the United States…[as the] foundation of the best hopes for the general improvement of mankind…’

    And this is exactly what this campaign is based upon.

    We know from Enterprise Insight’s research that:

    • young people want to have the chance to develop potential;
    • young people want to be creative;
    • young people want to do something real and tangible;
    • young people want to make their own decisions.

    Indeed twice as many people under 35 are thinking of starting a business as those over 35.  But often they don’t have the confidence or the help and support they need to turn their ideas into reality.

    We also know from Enterprise Insight’s research that networks matter.

    That the best inspiration is to see other people who have made ideas happen.

    It’s easier for young people who know other people who’ve started a business to do the same.

    It’s harder for those who don’t have people they can turn to for support and advice.

    And that’s why the involvement of more established business men and women helping to enthuse young people is so important.

    Some of you here today are already mentoring young people thinking of starting up a business:

    • convincing them that they really can do it;
    • advising as they take their ideas forward;
    • supporting them through setbacks;
    • giving honest feedback;
    • building confidence;
    • providing expert practical support.

    And let me thank you – all the businesses here and all the mentors – for all you do.

    So what is our role as a Government in helping young people develop the confidence to believe that although starting up and running a business is not always easy, they can do it; in encouraging the belief that they can – in the words of your campaign – ‘Make their Mark’?

    First, new entrepreneurs need a good economic environment and so the British enterprise renaissance must be built upon our platform of economic stability. And my promise, now and in the future, is that Government will not play politics with inflation or interest rates.

    Second, we can do more to put in place the right incentives to support and reward enterprise. In our first years in government, even with other priorities including the NHS, we cut capital gains tax – now down from 40 pence to 10 pence for long term business assets – and we have cut rates of corporation tax and small business tax. In the coming Pre Budget Report we will make it our business to examine and remove the tax and regulatory barriers to enterprise – such as those that hold back university spin-off companies from turning research excellence into business success.

    Access to funds is crucial and at every point I want to be on the side of businesses as they look for start up finance, look to set up their first payroll, look to make investments and look to get equity into their company – and in each area we are looking at the incentives we can offer.

    And we are ready to do more.

    To prove that in high unemployment areas enterprise is the best solution to poverty we are creating 2,000 new enterprise areas with new tax incentives.  And to encourage an entrepreneurial approach by local authorities, we are rewarding them for new businesses they attract or help create.

    And showing we are serious about breaking down regulatory and tax barriers to enterprise extends to what we argue for in Europe. This morning, Alan Wood, the Chief Executive of Siemens, will report – and tomorrow I will raise this in Brussels, standing up for Britain and British interests – how fair competition in the awarding of government contracts is being held back in many EU Member States, penalising enterprising and innovative companies.  In the interests of competition and enterprise, Europe must change and I will also push for urgent reform of the expensive state aids regime.

    In Britain we have much to do.

    As a whole business creation is half that of the USA.

    And in some areas the rate of business creation is one tenth that of the USA.

    Yet in the new global economy wealth creation and job creation through new business creation is the way forward.

    We know already that the greatest number of future jobs will not come from a small number of large businesses but a larger number of small businesses.

    And so from today and throughout the coming decade our objective must be American levels of business creation.

    And the key to the enterprise renaissance is a cultural change in Britain that starts in the schools and stretches right through our communities from classroom to boardroom – a cultural change that is more than the sum of any one set of initiatives.

    In recent decades it was not businesses, but benefits offices, that mushroomed in high unemployment communities.  Even in the enterprise revival of the 1980s it was too often seen as something for the elite – too many men and women of ideas, drive and flair too easily discouraged by a stop-go economy and a fear of failure. Many concluded that the Britain that pioneered the industrial revolution and taught American about commerce had lost its taste and drive for enterprise.

    People used to argue that in Britain you could have enterprise but at the cost of fairness – or fairness but at cost of enterprise. So for decades political parties that emphasised enterprise at the cost of fairness vied with parties that emphasised fairness at the cost of enterprise.  But I have told the Labour Party we must break with this unenterprising past.

    I have said to the Labour Party we must forever renounce these old stereotypes and that our duty is to forge a new national economic purpose: that enterprise open to all – and breaking down the barriers to wealth creation – is the right way forward for communities and our country as a whole.

    What does that mean?

    It means breaking down the barriers to opportunity for young people, for women, for ethnic minorities, for all who have found it difficult in the past to starting a business.

    And it means changing our attitudes to risk. It is often said that the transatlantic divide in entrepreneurial attitudes is that Europe seeks economic security, while America was built – as Alan Greenspan suggests – on people willing to take greater risks. With reformed insolvency laws Britain is turning its back on the culture that frowned upon those courageous enough to take risks and, instead, is encouraging those who, having failed at first, try again.

    Because we know the starting point is the school I am pleased to see so many teachers with us today.

    When I was young, my fellow school and university students shied away from commerce in favour of the professions.

    Now – with Charles Clarke’s support for enterprise in our education system – it is changing.

    More than 1500 schools are now offering their pupils enterprise education.

    Many schools are running enterprise competitions where young people set up their businesses.

    Others are offering pupils the chance to do work experience in successful local companies or be mentored by local businessmen or women. And one thousand enterprise advisers are already working in schools in our most deprived areas.

    What’s being achieved is impressive but it is not enough.

    We cannot have a deep and wide entrepreneurial culture if just half of schools offer their pupils enterprise education.

    We cannot be an enterprising nation if less than 1 per cent of college or university students are engaged in entrepreneurial activity.

    That’s why, from next year, the Government has provided the resources so that each school will be able to offer every pupil not just work experience but 5 days of enterprise education too.  And I want to see every school – and then every college and every university – twinned with a local company who becomes their ‘business champion’, helping to forge a stronger enterprise culture amongst the students.

    British universities, once slow to respond, are now fixed on working with businesses, expanding university spin offs, licensing technologies and teaching students about enterprise.  I can tell you that funds are now available for the new National Council for Graduate Entrepreneurship to sponsor tailored training and support through their ‘Flying Start’ programme for the first 150 student entrepreneurs across the country.  Working with the Kauffman Foundation, the Council will also hold an international conference on how we can do more to put enterprise at the centre of the university curriculum.

    And when the US Treasury Secretary John Snow visits Britain tomorrow we will agree a new transatlantic enterprise partnership so that through exchanges and the sharing of experience between our two countries we can build a stronger enterprise culture, especially in our schools and universities.

    But we must do more.

    Take opportunities for women – denied the chance to make the most of their business potential for too long.

    It is because less than 15 per cent of businesses in the UK are owned by women, compared to 30 per cent in the US, that Patricia Hewitt – who I know is speaking to you later today – and I announced last month a new drive to encourage the next generation of women entrepreneurs – including appointing a new Women’s Enterprise Panel to champion female entrepreneurship.

    So there is much to do for both men and women.

    I’ve already emphasised the importance of mentoring.  And on its 21st anniversary I want to congratulate the Prince’s Trust who are using their local, on the ground, person to person approach to successfully help some of our most disadvantaged young people develop the skills and confidence to consider starting up a business of their own.

    And the Government is also extending funding for the British Volunteering Mentoring Initiative – a national mentoring network which is already linking over a thousand established business men and women who want to mentor with business start ups that need help and advice.

    In the future I hope to see many more business men and women becoming role models for young people in their communities, helping to inspire the business leaders of the future.

    And building on the business clubs already being formed up and down the country, I am urging more businessmen and women to join together to share their experiences and expertise with new entrepreneurs.

    Britain has huge inherent advantages – our creativity, our stability, our outward-looking internationalism.  Now we must build on these strengths and foster a new national spirit of enterprise.

    So its all of us together – young people with ideas, teachers, lecturers, business mentors, local authorities, Government, communities in support.

    And I believe that – working in partnership – we can begin to tap the immense skill and entrepreneurial talent that exists in Britain to the benefit of us all, and change the whole culture of our country.

    Indeed the message is that there is no no-go area for enterprise in twenty first century Britain. And as this morning as we look forward to the events of Britain’s first national Enterprise Week, let us also look forward to creating a new national consensus that is the way forward for Britain:  a shared, patriotic vision of Britain’s economic destiny as a nation united in celebrating aspiration, ambition and enterprise.

  • Gordon Brown – 2004 Speech at the Inner City 100 Reception with US Treasury Secretary John Snow

    Gordon Brown – 2004 Speech at the Inner City 100 Reception with US Treasury Secretary John Snow

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, at 11 Downing Street in London on 16 November 2004.

    It is a great pleasure to welcome all of you to Number 11 Downing Street this evening, as part of this first British National Enterprise Week, to celebrate the Inner City 100 awards – the awards designed to celebrate the fastest growing firms in Britain’s highest unemployment areas.

    And let me congratulate all of the winners on your remarkable achievements:

    The determination, leadership and vision you have demonstrated;

    The innovations that you have developed;

    The exceptional financial return you have delivered;

    The new markets you have identified and created;

    And all the benefits you have brought both to the British economy and to your communities.

    You are the wealth creators, the women and men who can make our nation more successful and more prosperous.

    And let me thank Stewart Wallis and his team at nef, Sir Fred Goodwin and RBS, and the Financial Times for all they have done to support this initiative.

    And it is very appropriate that I introduce to you our special guest this evening. Someone who has distinguished himself both in business – as the former chairman and chief executive of CSX corporation – and in government service – the Treasury Secretary of the United States – John Snow.

    And I want to say – in welcoming John as the first member of the newly re-elected US administration to visit Britain, that what binds America and Britain together is not simply a shared history over the generations – and not just wonderfully good and cordial personal relationships – but shared values.

    Indeed for centuries, America and Britain have been linked by the ideals that we share: a passion for liberty and opportunity; a belief in the work ethic, a commitment to the spirit of enterprise, that anyone with ideas, determination and dynamism and the will to make the effort should have the chance to succeed.

    And today we stand for a Britain and an America that are outward looking, ambitious to succeed, determined to advance an enterprise culture, and fully equipped to lead in the new global economy.

    In May, John and I hosted a US-UK enterprise forum in New York, bringing together experienced business leaders with young entrepreneurs to share ideas on how best we can advance enterprise;

    In June we brought together experts to share ideas on enterprise education in schools;

    The New Entrepreneur Scholarships have enabled 20 UK entrepreneurs to study at a US business school;

    We have jointly called for closer co-operation to tackle barriers to trade and investment between the EU and US – which could generate as much as $150 billion and one million jobs;

    And we have worked closely together in the war against terrorism and the economic reconstruction of Afghanistan and Iraq.

    Deepening our cooperation, I am delighted that today John and I are able to set out a new transatlantic agreement so that through exchanges and the sharing of experience between our two countries we can build a stronger enterprise culture (see attached).

    And today I can announce that this new partnership will include:

    A second UK-US enterprise summit in the UK early next year, bringing together government, business leaders and entrepreneurs to share lessons from areas of national strength, and propose next steps in advancing enterprise;

    Continued cooperation on enterprise education, including holding a UK-US conference for sharing best practice on enterprise education in universities, led by the UK’s new National Council for Graduate Entrepreneurship together with the Kauffman foundation in the US;

    And we are jointly welcoming the June EU-US summit’s call for a new strategy to give fresh impetus to EU-US economic cooperation, which we plan to make a priority for the UK’s presidency of the EU.

    And as we work together on enterprise, we know that in Britain there is much that we can learn from the USA.

    John, you will know that Inner City 100 here is modelled on the USA’s Initiative for the Competitive Inner City. And just as in the USA this competition is:

    Unlocking talent and enterprise;

    Encouraging the young to make the most of themselves;

    And with Inner City 100 award winners creating – on their own – 5,500 jobs after growth averaging over 1,000 per cent, renewing our inner cities, you are proving that there are no no-go areas for enterprise in our country and it is possible to create a national consensus around a Britain where enterprise is truly open to all.

    So let me congratulate you – the prizewinners of Inner City 100 – once again on all you have achieved – you are our future tycoons and business leaders – and you are evidence that Britain truly is an enterprising nation.

    Now let me introduce John Snow to you.

    For the part you have played in strengthening America’s enterprise culture and inspiring us here, John, thank you.

    It is a pleasure to welcome you back to Downing Street and to ask you to address us this evening.

    2005 US – UK Transatlantic Enterprise Partnership

    Both the US administration and the UK Government are committed to the economic reform agenda and to sharing ideas across the Atlantic on how to strengthen enterprise, productivity and jobs – which are essential for faster growth in the US, UK and across Europe, and for balanced global growth.

    Following the success of the US-UK initiative in 2004, the 2005 US-UK Transatlantic Enterprise Partnership will build on the earlier initiatives, and will take the policy dialogue further.

    US – UK Enterprise Initiatives

    UK-US Enterprise Summit

    Following the success of last year’s summit and academic seminar held in the US, we agree to co-chair a second joint government–business enterprise summit in the UK next year to discuss the contribution of enterprise to productivity, jobs and growth and the best methods for encouraging entrepreneurship. The summit will draw on experience from entrepreneurs and policy makers, and share lessons from areas of national strength in both countries. In conjunction with the summit, we will convene a group of academic experts to consider the role of government and education in fostering entrepreneurship, productivity and jobs, to assess progress over the last year and to propose areas for future policy action.

    Enterprise in education

    The UK has established the National Council for Graduate Entrepreneurship in order to encourage students and graduates to consider entrepreneurship as a viable career option. Lessons have already been learnt from US models of stimulating interest in enterprise in universities, and the UK is keen to maintain this momentum. We propose to hold a conference for UK and US leaders of universities, working with the National Council for Graduate Entrepreneurship and the Kauffman Foundation.

    In June this year, experts, teachers, and enterprise education providers from the US and the UK exchanged ideas and best practice on all aspects of enterprise education in schools. We believe that this co-operation should continue and therefore we propose to continue this dialogue in 2005.

    EU-US Economic Cooperation

    We reaffirm the importance of enhancing economic cooperation between the EU and the US for growth and prosperity on both sides of the Atlantic. We welcome the June EU-US summit declaration calling for a new forward-looking strategy for eliminating barriers to further economic integration, and the steps taken by the US administration and the Commission to consult stakeholders.

    We look to the 2005 Summit to endorse an ambitious strategy injecting new impetus into the transatlantic economic agenda and including the active engagement of key policy makers and regulators on both sides of the Atlantic.

    We are also pleased that the OECD is taking forward a study of the potential economic benefits of closer economic cooperation and look forward to the publication of results in March.

  • Gordon Brown – 2004 Speech at the BBC World Service Trust Conference

    Gordon Brown – 2004 Speech at the BBC World Service Trust Conference

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, on 16 November 2004.

    Let me, on behalf of my colleague Hilary Benn and myself, start by thanking for both organising this event – and for all its work – the BBC World Service Trust.

    And let me thank the Trust, started in 1999 to promote development through better communications, and the BBC World Service itself – great British institutions which play a unique role in relationships between Britain and the world, that express Britain’s outward looking internationalism and our responsibilities to the world.

    Let me in particular congratulate the World Service Trust for its less widely publicised but highly innovative work:

    – your pioneering HIV/AIDS campaign which in India alone has helped 7 million;

    – your pioneering public health work as in Kenya where you have engaged 4 million young people;

    – and your pioneering distance learning programmes which in Somalia alone has attracted 10,000 into education and attracted thousands elsewhere.

    And let me thank you especially for holding this conference now, here, on what I believe is the most important issue of our generation – world poverty – and looking forward to its most important year for our generation – 2005.

    For while Hilary will talk specifically about the role of broadcasting I want to emphasise in my opening remarks the importance of the coming year.

    It is the year when, five years after setting the Millennium Development Goals to address world poverty, hunger, disease and illiteracy, world leaders will meet in the United Nations Millennium Summit to examine progress on world poverty.

    In January a special report – the UN Millennium Project report on poverty.

    In February under UK Chairmanship the G7 Finance Ministers meet to examine what the G7 can do on debt and finance for development.

    In March a personal report by Kofi Annan on world poverty.

    In April then June special meetings of G7 finance ministers to prepare a final paper on debt and development.

    In July Britain playing a special role hosting the G8 summit preceded by the report of our Africa Commission.

    In September the UN Millennium Summit.

    And then it is only a few weeks before December in Hong Kong the world trade talks – what was to be the development round for trade – resolving the other great development issue of our time.

    And already in Making Poverty History more than a hundred aid, development, and trade organisations and anti poverty organisations are coming together in probably the biggest expression of public opinion in demonstrations, campaigns, petitions to make poverty the issue of the year.

    2005 is thus a year of opportunity and a year of challenge.

    A testing time as to whether the world can wake up to the scale of the tragedy of poverty and its implications.

    Whether we can come together as never before to fashion a new relationship between rich and poor countries and peoples.

    The year when also in the shadow of failed states and terrorist threats as well as global poverty we will be asked whether the richest countries can summon up a similar level of inspiration and vision as was shown fifty years ago and agree a modern equivalent of the Marshall Plan.

    Whether we can be as bold in our statesmanship as we were in 1945 with the formation of the World Bank.

    And it is the year as I shall explain this morning when I have hopes that:

    – we finally make a reality of our pledge to wipe out 100 per cent of debt to the Highly Indebted Poor Countries;

    – we can have the first trade round the world has ever seen that is professedly shaped in the interests of the poorest countries;

    – and central to this is our British proposal for a new covenant between the developed and developing world to tackle poverty based on a new deal in international finance — and I want to explain how I believe it can be done.

    Today is also the time for politicians and broadcasters each doing our very different jobs and performing our every different roles to take stock – think back on and to learn from, both in terms of achievements and failures, what has been a long journey in the discussion of development issues since twenty years ago – 1984 and 1985 – and what we achieved and didn’t achieve.

    Live Aid was that extraordinary moment when, through the power of television, everyone in the world realised here was an issue that wasn’t just a matter of opinion.

    Live Aid was about communicating the self-evident truth that we cannot be this rich and see people that poor.

    That when we see people starving to death on TV right in front of our eyes we cannot sit there and do nothing.

    Indeed, a recent survey stated that the majority of young people growing from youth to adulthood in these years agree that Live Aid was the single most memorable moment in their lives.

    And Live Aid started with the exposure by journalism – Michael Buerk’s reports from Africa.

    And when Amartya Sen wrote some years ago of the difference between the history of famines in China and India and exposed the difference between the old China – where because there was no free press and no multi-party democracy no one reported the deaths no one ever knew the nameless, forgotten, unmentioned people who died – and the old India – where because there was openness, the authorities were forced to react he was describing in the case of India where the role and responsibility of the media in development starts – through better communications to promote better development. As US Supreme Court Justice Louis Brandeis said, ‘Sunlight is the best disinfectant’

    But this is also the time to realise how – despite that exposure, good works, demonstrations, a stronger public opinion than ever before, how much has been achieved in international conferences – how we fell short and how much has still to be done.

    Return to Ethiopia after twenty years and as Hilary Benn explained to me there are 70 million people and today just 2,000 doctors, life expectancy of less than 50 and children have only a one in ten chance of surviving until the age of one.

    Return to sub-Saharan Africa and find life expectancy less than 50 indeed 46.

    Visit 32 countries which still have an average life expectancy of less than 50.

    Visit 24 countries where one in every ten of children die before the age of one and the everyday story is mothers struggling to save the life of their infant children and in doing so losing their own.

    Let us recognise that since 1984, despite the massive publicity, aid to Africa, which was $33 per person ten years ago, is just $19 per person now – halving of the aid per person.

    Yet while aid is less, I believe we are today challenged more than in 1985.

    In a world where we are, thanks to your communications and media, the first generation to know the numbers, the scale, the sheer extent of the tragedy facing us in Africa and other developing countries.

    And we are, thanks to the development of science, medicine and technology, the first generation to know it to be preventable.

    The achievements of twenty years look modest

    The effect of sunlight has not been a bright new world

    It is hardly surprising that in your survey people think no world leader, no politician has achieved anything as much as Bono and Bob Geldof.

    And here in 2004, twenty years on, after twenty years of relative failures not success, we have to ask ourselves: what are our respective responsibilities moving forward?

    For a measure of our challenge is that the very weapon to tackle poverty – the Millennium Development Goals – the international community’s targets to halve poverty by 2015 – 72 per cent of your survey said they had never heard of them.

    And I believe that our greatest responsibility looking forward to 2005 is:

    – a mission to get to beyond the shock horror, sensationalist, in and out – and to be consistent over time where the challenge is indeed making development issues simple to understand without being superficial;

    – to examine and bring to the public’s attention not just the surface and immediate manifestations but the underlying forces at work and the causes of the problems developing countries face, including challenges of corruption, transparency and governance.

    The urgency is that next year – 2005 – is in my view not only a year where there is a calendar for action on development but make or break year for the world community.

    It is not just the chance to review progress after 20 years of Live Aid.

    It is also when the developing world will ask from January to December – and especially at the UN Millennium Summit – whether the promises to right the great wrongs of our time are to be met:

    – the promise that by 2015 every child would be at school;

    – the promise that by 2015 avoidable infant deaths would be prevented;

    – the promise that by 2015 poverty would be halved.

    In other words promises that rich countries would work with the poor to right the great wrongs of our time.

    And as a spur to action it is the year when Britain’s G8 and EU Presidencies will focus on development and it is the year when the Africa Commission reports.

    The Millennium Development Goals were not a casual commitment .

    In 2000 every world leader signed up.

    Every international body signed up.

    Almost every single country signed up.

    This commitment was a bond of trust, perhaps the greatest bond of trust pledged between rich and poor. But already, so close to the start of our journey, we can see that our destination risks becoming out of reach, receding into the distance.

    For at best on present progress in sub Saharan Africa:

    – primary education for all will be delivered not in 2015 but 2130 – that is 115 years late;

    – the halving of poverty not by 2015 but 2150 – that is 135 years late;

    – and elimination of avoidable infant deaths not by 2015 but by 2165 – that is 150 years late.

    Martin Luther King spoke of the American Constitution as a promissory note.

    And yet – for black Americans – the promise of equality for all had not been redeemed.

    And he said that the cheque offering justice had been returned with ‘insufficient funds’ written on it.

    And in this way he exposed on racial equality the gap between promises and reality.

    And in the same tragic way, the Millennium Goals which were a promise that became a commitment, a timetable and a pledge, are now at risk of being downgraded from pledge to just possibility to just words.

    Yet another promissory note, yet another cheque that has barely been issued but is already being returned with the phrase ‘insufficient funds’ marked on it.

    And the problem is not that the promise was wrong, the pledge unrealistic, the commitment unnecessary but that we have been too slow in developing the means to honour and fulfil them

    That is why in my view we need to urgently summon up the inspiration, vision and commitment in a manner akin to the Marshall Plan of the 1940s when America boldly transferred not 0.7 per cent of its national income but 2 per cent of its national income to war ravaged Europe and by transferring resources and stimulated world trade ushered in decades of world economic growth.

    What should we do?

    Put simply, the UK Government’s proposal for 2005 is for nothing less than what Jonathan Sacks calls a ‘new covenant’ between developed and developing countries…..that as developing countries devise poverty reduction plans and do so to expand their own development, investment and trade, we the richest countries must take three vital steps:

    – first, writing off not just all of the historic debt owed by the poorest countries to the richest but also all of the historic debt they owe to international organisations;

    – second, dismantling our damaging trade barriers and providing the investment needed for the poorest countries to build capacity to trade and protect their most vulnerable citizens;

    – and third, providing the resources that are urgently needed to meet the Millennium Development Goals by increasing development aid on the road to 0.7 per cent of national income and by immediately creating an International Finance Facility.

    And out of this I believe we could achieve not only a major assault on poverty in the poorest countries but pave the way as the Marshall Plan did for greater trade and higher and longer-term world economic growth benefiting us all.

    Let me just summarise what I believe can be achieved by our measures.

    First, on debt relief.

    In 1997 just one country was going to receive debt relief.

    Now 27 countries are benefiting with $70 billion dollars of unpayable debt being written off.

    But when many countries are still being forced to choose between servicing their debts and making the investments in health, education and infrastructure that would allow them to achieve the Millennium Development Goals, we know we must do more.

    That is why in 2005 we must break new ground, go much further than we have gone before, and why we are proposing a new set of principles to govern the next stage in debt relief.

    First, that the richest countries match bilateral debt relief of up to 100 per cent with multilateral debt relief of up to 100 per cent so that all debts are covered.

    Second, that the cancellation of debts owed to the International Monetary Fund should be financed by using IMF gold.

    Third, that instead of waiting for countries to contribute as we used to do to a World Bank trust fund, countries make a unique declaration that they will repatriate their share of the World Bank and the African Development Bank’s debts to their own country.

    And so that is why Britain has announced that Britain will relieve those countries still under the burden of this debt to these banks by unilaterally paying our share – 10 per cent – of payments to the World Bank and African Development Bank as we urge other countries to do so.

    Alongside more debt relief, 2005 is the opportunity that may not easily return if missed to agree a progressive approach to trade.

    You know the damage that rich countries protectionism has done to entrench the poverty of the poorest countries. We spend as much subsidising agriculture in rich countries as the whole income of all the 689 million people in sub Saharan Africa taken together. And for every dollar given to poor countries in aid, two dollars are lost because of unfair trade.

    So 2005 is the time to send a signal and to agree a new policy.

    First, it is time for the richest countries to agree to end the hypocrisy of developed country protectionism by opening our markets, removing trade-distorting subsidies and in particular, doing more to urgently tackle the scandal and waste of the Common Agricultural Policy show we beehive in free and fair trade.

    Second, it is time to move beyond the old Washington consensus of the 1980s and recognise that while bringing down unjust tariffs and barriers can make a difference, developing countries must also receive support, including additional finance, so that they can carefully design and sequence trade reform into their own poverty reduction strategies.

    And third, because it is not enough to say ‘you’re on your own, simply compete’ we have to say ‘we will help you build the capacity you need to trade’ – not just opening the door but helping you gain the strength to cross the threshold. We have to recognise that developing countries will need additional resources from the richest countries both to build the economic and infrastructure – capacity they need to take advantage of trading opportunities – and to prevent their most vulnerable people from falling further into poverty.

    And our discussion of debt relief and trade leads to a far more important point, the essential challenge of 2005, that our deal with the developing countries must involve a transfer of resources.

    I said that since the 1980s aid to Africa, which was $33 per person ten years ago, had halved to just $19 per person now.

    And that indeed where aid has been increased in recent times it has simply been in the form of debt relief.

    The truth is that the scale of the resources to tackle disease, illiteracy and global poverty is far beyond what traditional funding can offer, even in the best case scenario.

    In the spending review the Government raised UK overseas aid to 0.47 per cent of national income by 2008, including £1.25 billion a year for Africa, and we reported that UK aid was on track to rise beyond 0.5 per cent after 2008 and to 0.7 per cent of national income by 2013. And I urge all nations yet to reach 0.7 to move further and faster to higher aid levels and on towards that target.

    But we know that even if one or two of the G7 could overcome fiscal constraints and go to 0.7 per cent tomorrow, we still would not reach the scale of resources needed – at least $50 billion extra a year.

    And even if all announced a timetable – as they should consider like us – for 0.7, that timetable would be in the future and would still leave the question of how we provide urgently needed additional resources now.

    That is why the UK Government has put forward its proposal for stable, predictable, long-term funds frontloaded to tackle today’s problems of poverty, disease and illiteracy through an International Finance Facility.

    The IFF is in the tradition of the Marshall Plan of 1948, indeed modelled on the founding principles of the World Bank in 1945 where nations provided resources to an international institution that then borrowed on the international capital markets.

    And let me just explain what the IFF could achieve for the world’s poor.

    The IFF is founded upon long-term, binding donor commitments from the richest countries like ourselves.

    It builds upon the additional 16 billion dollars already pledged at Monterrey.

    And on the basis of these commitments and more it leverages in additional money from the international capital markets to raise the amount of development aid for the years to 2015.

    By locking in commitments from a wide range of donors, the IFF would enable us to front load aid for investment in development, enabling a critical mass of predictable, stable and coordinated aid as investment to be deployed over the next few years when it will have the most impact in achieving the Millennium Development Goals – saving lives today that would otherwise be lost.

    The IFF would enable us to invest simultaneously across sectors – in education and health, trade capacity and economic development – so that instead of having to choose between urgent emergency disaster relief and long term investment the impact of extra resources in one area reinforces the investment in another.

    And the IFF will allow us to attack the root causes of poverty not just the symptoms – focusing on developing the capacity and the dignity people need to help themselves.

    Aid as investment for the future not compensation for being poor.

    And let me tell you the scale of what I am proposing.

    As a result of all campaigns taken together international aid is rising from 50 billion dollars a year four years ago to around 60 billion dollars – a huge achievement.

    But our proposal for next year is to raise development aid immediately not from 60 billion to 65 billion or even 70 billion but effectively a doubling of aid to over 100 billion dollars per year.

    With one bold stroke: to double development aid to halve poverty.

    So the practical benefits of the IFF are:

    – we provide grants to help ensure a sustainable exit from debt;

    – we provide the support poor countries need to invest in infrastructure, education, health and economic development so they can benefit from access to our markets;

    – we make primary schooling for all not just a distant dream but a practical reality – meeting these needs and rights now and not deferring them to an uncertain future;

    – and we meet our global goals of cutting infant mortality and maternal mortality, eliminating malaria and tuberculosis and treating millions more people who are suffering from HIV/AIDS.

    Of course, we will have to convince a sceptical world that money for development will not be wasted so in the Commission for Africa report Professor Nick Stern will provide the examples of how the Poverty Reduction Plans are making aid more effective and how countries can absorb much more aid. And making better use of aid – reordering priorities, untying aid and pooling funds internationally to release additional funds for the poorest countries – is essential to achieve both value for money and the improved outcomes we seek. But – in addition to these reforms – the fact is that unless we adopt the IFF or a similar mechanism immediately there is simply no other way of meeting the Millennium Development Goals in time.

    Of course we are ready to look at other means – international taxes, more resources direct to development banks, the IMF and the World Bank – but the fact is that no matter how much we praise country by country initiatives and announcements, existing commitments on their own will not get us there.

    Existing mechanisms on their own will not get us there.

    We can see this now.

    We need not wait a decade to make this judgment.

    And adopting the IFF now will give us momentum today instead of putting action off until tomorrow.

    Indeed, frontloading is not just better way but perhaps the only way of avoiding catastrophe.

    And let me Just give an example of what – because of the IFF – is already possible

    The Global Alliance for Vaccines and Immunisation and the Gates Foundation is interested in applying the principles of the IFF to the immunisation sector – donors making long term commitments that can be securitised in order to frontload the funding available to tackle disease.

    If, by these means, GAVI could increase the funding for its immunisation programme by an additional $4 billion over ten years, then it would be possible that their work could save the lives of an additional 5 million people between now and 2015.

    So in one fund, with one initiative, we can glimpse the possibilities open to us if we act together. If we could do the same for health, for schools, for debt, for the capacity to trade, a doubling of aid to halve poverty within ten years is within our grasp

    And let me just add.

    The recent breakthrough which for the first time gives us a vaccination to prevent malaria that could be ready in three to four years time is a revolution in our time. The challenge is in an area where there are insufficient purchasers with funds we need to ensure that the vaccine does go into commercial production and is available at affordable prices. And therefore I can announce that the British Government working with other Governments is ready to enter into agreements to purchase these vaccines in advance to ensure a secure market and that the vaccines are available more cheaply – and thus avoid many of the 1 million deaths from malaria each year.

    So when people ask is it possible, I say:

    – people thought the original plans for the World Bank were the work of dreamers

    – people thought that the Marshall Plan unattainable

    – even in 1997 when we came to power people thought debt relief was an impossible aspiration and yet we are wiping out 100 billion dollars of debt

    – people thought no more countries would sign up to a timetable for 0.7 per cent in overseas development aid and yet year this year alone five

    countries have done so.
    Each of us of course have our respective responsibilities, our very different duties, as broadcasters, politicians, aid organisations.

    A measure however of the opportunity of 2005 is that:

    in the survey published today three out of four people said they were very interested or interested in learning more about poverty in developing countries; and 86 per cent said there was not enough or too little media coverage of poverty in developing countries.

    So for all of us – politicians and broadcaster – each doing our very different jobs, an even greater measure of the potential is that in 2000 first hundreds, then thousands, then millions of people first in one country then in one continent, then in all countries, and in all continents came together to demand debt relief and in doing so changed the world.

    And even now that coalition is not just being reformed but growing in strength.

    More people in development organisations than ever before.

    100 organisations coming together in the new coalition – Make Poverty History.

    The most amazing coalition of people coming together – and I congratulate Bob Geldof, Bono, Richard Curtis and all the churches and faith organisations who do so much good and have come together to make a plea for action in 2005.

    I quoted Martin Luther King a few months ago in saying the arc of the moral universe is long but it does bend towards justice.

    This was not an appeal to some iron law of history nor a demand that journalists act in a particular way but to remind people that by their own actions they can and do change the world for good.

    And I believe that:

    with the scale of the challenge revealed;
    with the organisation of public opinion now happening in Britain and in other countries;
    and if there is a determination among world leaders to be bold;
    the arc of the moral universe while indeed long will bend towards justice in the months and years to come.

  • Gordon Brown – 2004 Speech at the Political Studies Association Awards Ceremony

    Gordon Brown – 2004 Speech at the Political Studies Association Awards Ceremony

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, on 30 November 2004.

    The longer I am a Member of Parliament the more I realise that to resolve the challenges of the present and to equip yourself as a nation for the future we must have a deeper understanding of our past – of our history and of our society.

    Indeed – as I say in the British Council pamphlet published today – the nations that will succeed in the modern world will be those that have a stronger sense of who they are, what they strive to achieve and – in the face of terrorism – what they are defending.

    It is only by understanding that Britishness is founded not on race or ethnicity or even on unchanging institutions but on shared values that you are best placed to solve questions of racial integration and then asylum and immigration. And David Blunkett and I are agreed that lessons in citizenship should involve teaching about the values that underpin British history.

    It is only by understanding that our values are based on liberty, tolerance and civic duty that we can evolve for our time the checks and balances of a modern constitution best suited to Britain’s needs and British peoples aspirations.

    It is only by understanding what it is to be British and that to be British involves being outward looking, internationalist and Pro-European that we can solve the vexed question of Europe for our generation.

    So instead of marginalising our history or apologising for our history we should be rediscovering in our history our essential genius – the values of liberty, civic duty, fair play, enterprise and internationalism that shape our institutions. And in receiving this award let me make a proposal that on a non-partisan basis, across academia, politics, and journalism – we can debate Britishness and interested people will establish a new Institute and Forum for Britishness studies examining the forces at work in shaping the future of Britain.

    Indeed, the theme of the Pre-Budget Report will be that the next decade can be a British decade, that Britain’s success and destiny depends upon understanding and building upon our historic strengths our stability, our openness to the world, our scientific creativity, our world class universities – and then understanding and addressing our weaknesses – the need to invest long term in science, enterprise, education and in the potential of every young person and adult.

    So at the heart of the Pre-Budget Report is a patriotic vision of Britain’s future as a country of ambition and aspiration – how we make Britain the best place to grow up in, the best place to study, the best place to start a business and to work – as we build a Britain that makes us even more proud to be British.

  • Gordon Brown – 2004 Speech at CAFOD’s Pope Paul VI Memorial Lecture

    Gordon Brown – 2004 Speech at CAFOD’s Pope Paul VI Memorial Lecture

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, on 8 December 2004.

    To be asked to address you tonight, to be part of this great lecture series in memory of Pope Paul VI is both humbling and challenging.

    It was Pope Paul VI who as early as the 1960s alerted the modern world that the old evil of poverty had to be addressed as an unacceptable scourge of the new global economy.

    It was Pope Paul VI who in 1967 in his ‘Encyclical Populorum Progressio’ – ‘Development of Peoples’ – urged upon the richest countries their sacred duty to help the poorest.

    And it was Pope Paul VI who set out, for our generation, the obligations that we all have a duty to meet: obligations that arise from – as he said in his own words:

    – Our mutual solidarity;
    – The claims of social justice;
    – And universal charity.

    In his book ‘The Power of Myth’ Joseph Campbell describes a hero as someone who has given his or her life to something bigger than him or herself.

    And today I want to honour not just the legacy of Pope Paul VI but all of you here tonight – missionaries, aid workers, supporters, contributors campaigners – as our modern heroes. For just as surely as some of our greatest heroes of history, your religious faith, your moral anger at poverty, your sense of duty, has led you to fight for great causes, stand for the highest ideals and do God’s work on earth. And let me on your behalf thank Cardinal Murphy O’Connor whom I and the British people admire so much for his leadership not just in this country but throughout Europe; Chris Bain for leading CAFOD and for his crucial, catalytic role in bringing the ‘Make Poverty History’ campaign together; and all members of CAFOD.

    The reward you seek, as you have always said, is not recognition nor status nor titles nor money but that the coming generation – who never even knew you – enjoys a better life thanks to your courageous work.

    And I also want to pay my personal tribute to the work of CAFOD over forty years and your leadership in achieving, by your determined campaigning, what many thought impossible – 100 per cent bilateral debt relief.

    You led a coalition whose voices rose to a resounding chorus that echoed outwards to the world from Birmingham, then from Cologne, then from Okinawa – a clarion call to action speaking not for yourselves alone but for the hopes of the whole world.

    And you led a coalition that achieved more standing together for the needs of the poor in one short year than all the isolated acts of individual governments could have achieved in one hundred years.

    Reminding us that as CAFOD campaigning for justice for the world’s poor you have for forty years:

    – Changed the way we think about giving;
    – Deepened our commitment to serving others;
    – Demonstrated that duty and obligation are more powerful than selfishness or greed;
    – And in doing so brought the world closer together.

    Now, it is the churches and faith groups that have, across the world, done more than any others – by precept and by example – to make us aware of the sheer scale of human suffering – and our duty to end it.

    Indeed, when the history of the crusade against global poverty is written, one of its first and finest chapters will detail the commitment of the churches in Britain to help the world’s poor.

    And my theme tonight is what this generation working together, each and all of us, can do – that we are not powerless individuals but, acting together, have the power to shape history.

    And each of us, building on the individual causes we cherish – from work on debt relief to education, from fair trade to clean water, from blindness to TB, from AIDS to child vaccination – can together not only make progress for our direct concerns but also turn globalisation from a force that breeds insecurity to a force for justice on a global scale.

    Today I want to sketch out for you a vision of a new deal that demands a new accountability from both rich and poor countries.

    A new compact between those to whom so much is given and those who have so little.

    More than a contract – which is after all one group tied by legal obligations to another – and nothing less than what the author of ‘The Politics of Hope’ called a ‘covenant’ – the richest recognising out of duty and a deep moral sense of responsibility their obligations to the poorest of the world.

    And I want suggest that at the same time as developing countries devising their own poverty reduction plans, we the richest countries must take three vital steps:

    – first, agreeing a comprehensive financing programme – that is we achieve a breakthrough to complete 100 per cent debt relief; find a way to persuade others to join us in declaring their timetables on increasing development aid to 0.7 per cent of national income; and immediately raise an additional $50 billion dollars a year, doubling aid to halve poverty, through the creation of a new International Finance Facility;
    – second, with this new finance, that we advance to meet the Millennium Development Goals on health, education and the halving of poverty; use this unique opportunity to drive forward the internationalisation of AIDS research and the advance purchase of HIV/AIDS and malaria vaccines; build the capacity of health and education systems; and deliver to the 105 million children who do not go to school today, two thirds of them girls, our promise of primary education for all;
    – and third, that we deliver the Doha development round on trade, and make it the first ever world trade agreement to be in the interests of the poorest countries.

    Indeed, because progress on each of these is dependent on progress on all of these, we must during 2005 advance all of these causes together.

    Exactly five years ago in New York and in a historic declaration every world leader, every international body, almost every single country signed up to a shared commitment to right the greatest wrongs of our time.

    The promise that by 2015 every child would be at school.
    The promise that by 2015 avoidable infant deaths would be prevented.
    The promise that by 2015 poverty would be halved.

    This commitment was a bond of trust, perhaps the greatest bond of trust pledged between rich and poor.

    But already, so close to the start of our journey – and 20 years after the problems were first exposed to this generation through Live Aid – we can see that our destination risks becoming out of reach, receding into the distance.

    And at best on present progress in Sub Saharan Africa:

    – primary education for all will be delivered not in 2015 but 2130 – that is 115 years too late;
    – the halving of poverty not by 2-0-1-5 but by 2-1-5-0 — that is 135 years too late;
    – and the elimination of avoidable infant deaths not by 2015 but by 2165 — that is 150 years too late.

    So when people ask how long, the whole world must reply:

    150 years is too long to wait for justice.
    150 years is too long to wait when infants are dying in Africa while the rest of the world has the medicines to heal them.
    150 years is too long for people to wait when a promise should be redeemed, when the bond of trust should be honoured now in this decade.

    Martin Luther King spoke of the American Constitution as a promissory note.

    And yet – for black Americans – the promise of equality for all had not been redeemed.

    He said that the cheque offering justice had been returned with ‘insufficient funds’ written on it.

    He said, ‘we refuse to believe that the bank of justice is bankrupt.

    And he said the time had come to ‘cash this cheque which would give upon demand the riches of freedom and the security of justice’.

    And in this way he exposed on racial equality the gap between promises and reality.

    But in exactly the same way today’s Millennium Goals – a commitment backed by a timetable – are now in danger of being downgraded from a pledge to just a possibility to just words.

    Yet another promissory note, yet another cheque marked ‘insufficient funds’.

    And the danger we face today is that what began as the greatest bond between rich and poor for our times is at risk of ending as the greatest betrayal of the poor by the rich of all time.

    As a global community we are at risk of being remembered not for what we promised to do but for what we failed to deliver, another set of broken hopes that break the trust of the world’s people in the world’s governments.

    And when we know the scale of suffering that has to be addressed, the problem is not that the promise was wrong, the pledge unrealistic, the commitments unnecessary but that we have been too slow in developing the means to honour, fulfil and deliver them.

    In the past when we as a global community failed to act we often blamed our ignorance – we said that we did not know.

    But now we cannot use ignorance to explain or excuse our inaction. We can see in front of our TV screens the ravaged faces of too many of the 30,000 children dying unnecessarily each day.

    We cannot blame our inaction on inadequate science – we know that a quarter of all child deaths can be prevented if children sleep beneath bed nets costing only 4 dollars each.

    We cannot defend our inaction invoking a lack of medical cures – for we know that as many as half of all malaria deaths can be prevented if people have access to diagnosis and drugs that cost no more than twelve cents.

    The world already knows we know enough. But the world knows all too well that we have not done enough. Because what is lacking is will.

    So if we are to make real progress we must – together from this meeting room this evening – and then from countless other centres of concern and endeavour, go out into this country and other countries and show people and politicians alike everywhere why it is morally and practically imperative that we not only declare but fight and win a war against poverty; why we must not only pass resolutions and make demands but move urgently to remove injustice; why lives in the poorest countries depend upon converting, in the richest countries, apathy to engagement, sympathy to campaigning, half hearted concern to wholly committed action.

    In short we must share the inspiration we have of the power of the dream of a better world – and why it is now more urgent than ever that people everywhere are awakened to the duties we owe to people elsewhere whose hopes for life itself depend upon our help, duties not just to people who are neighbours but to people who are strangers.

    So that even when we know that our sense of empathy diminishes as we move outwards from the immediate, face to face, person to person relationships of family outwards to neighbourhood to country to half a world away, we still feel and ought to feel however distantly the pain of others – and why it is right to believe in something bigger than ourselves, bigger even than our own community as a wide as the world itself.

    It has been written that, ‘if we answer the question why we can handle the question how’.

    And this evening I am going to put forward three propositions:

    – that our dependence upon each other should awaken our conscience to the needs not just of neighbours but of strangers;
    – more than that, that our moral sense should impel us to act out of duty and not just self interest;
    – and that the claims of justice are not at odds with the liberties of each individual but a modern expression of them that ensures the dignity of all – and there is such a thing as a moral universe.

    First, does not Martin Luther King show our responsibilities to strangers, to people we have never met and who will never know our names, when he describes each of us as strands in an inescapable network of mutuality, together woven into a single garment of destiny?

    Indeed just as the industrialisation of the eighteenth century opened people up to a society which lay beyond family and village and asked individuals who never met each other to understand the needs of all throughout their own country, so too the globalisation we are witnessing asks us to open our minds to the plight and the pain of millions we will never meet and are continents away but upon whom, as a result of the international division of labour, we depend upon for our food, our clothes, our livelihoods, our security.

    I recalled a poem in my Labour conference speech:

    ‘It is the hands of others who grow the food we eat, who sew the clothes we wear, who build the houses we inhabit; it is the hands of others who tend us when we’re sick and lift us up when we fall; it is the hands of others who bring us into the world and who lower us into the earth’

    When I talked of the hands of others, I meant our dependence upon each other – the nurse, the builder, the farm worker, the seamstress – not just in our own country but across the earth. We are in an era of global interdependence, relying each upon the other – a world society of shared needs, common interests, mutual responsibilities, linked densities, our international solidarity.

    And since September 11th there is an even more immediate reason for emphasising our interdependence and solidarity. Now more than ever we rely on each other not just for our sustenance but for our safety and security.

    Colin Powell, US Secretary of State, states: ‘What poverty does do is breed frustration and resentment which ideological entrepreneurs can turn into support for terrorism in countries that lack the political rights, the institutions, necessary to guard the society from terrorists. Countries that are lacking basic freedoms. So we can’t win the war on terrorism unless we get at the roots of poverty, which are social and political as well as economic in nature’.

    And President Bush said on the eve of the Financing for Development Conference in Monterrey: ‘Poverty doesn’t cause terrorism. Being poor doesn’t make you a murderer. Most of the plotters of September 11th were raised in comfort. Yet persistent poverty and oppression can lead to hopelessness and despair. And when governments fail to meet the most basic needs of their people, these failed states can become havens for terror. In Afghanistan, persistent poverty and war and chaos created conditions that allowed a terrorist regime to seize power. And in many other states around the world, poverty prevents governments from controlling their borders, policing their territory, and enforcing their laws. Development provides the resources to build hope and prosperity, and security’

    So does not everything that we witness across the world today from discussing global trade to dealing with global terrorism symbolise just how closely and irrevocably bound together are the fortunes of the richest persons in the richest country to the fate of the poorest persons in the poorest country of the world even when they are strangers and have never met, and that an injury to one must be seen as an injury to all?

    But is not what impels us to act far more than this enlightened self-interest?

    Ought we not to take our case for a war against poverty to its next stage – from economics to morality, from enlightened self interest that emphasises our dependence each upon the other to the true justice that summons us to do our duty – and to see that every death from hunger and disease is as if it is a death in the family?

    For is there not some impulse even greater than the recognition of our interdependence that moves human beings even in the most comfortable places to empathy and to anger at the injustice and inhumanity that blights the lives not just of neighbours but of strangers in so many places at so high a cost?

    It is not something greater, more noble, more demanding than just our shared interests that propels us to demand action against deprivation and despair on behalf of strangers as well as neighbours – and is it not our shared values?

    It is my belief that even if we are strangers in many ways, dispersed by geography, diverse because of race, differentiated by wealth and income, divided by partisan beliefs and ideology, even as we are different diverse and often divided, we are not and we cannot be moral strangers for there is a shared moral sense common to us all:

    Call it as Lincoln did – the better angels of our nature;
    Call it as Winstanley did – the light in man;
    Call it as Adam Smith did – the moral sentiment;
    Call it benevolence, as the Victorians did; virtue; the claim of justice; doing ones duty.
    Or call it as Pope Paul VI did – ‘The good of each and all’

    It is precisely because we believe, in that moral sense, that we have obligations to others beyond our front doors and garden gates, responsibilities to others beyond the city wall, duties to others beyond our national borders as part of one moral universe – precisely because we have a sense of what is just and what is fair – that we are called to answer the hunger of the hungry, the needs of the needy the suffering of the sick whoever and wherever they are bound together by the duties we feel we owe each other. We cannot be fully human unless we care about the dignity of every human being.

    Christians say: do to others what you would have them do to you.
    Jews say: what is hateful to you, do not to your fellow man.
    Buddhists say: hurt not others in ways that you yourself would find hurtful.
    Muslims say: no one of you is a believer until he desires for his brother that which he desires for himself.
    Sikhs say: treat others as you would be treated yourself.
    Hindus say: this is the sum of duty: do not do to others what would cause pain if done to you.

    Faiths that reveal truths not to be found in economic textbooks or political theory – beliefs now held by people of all faiths and none – that emphasise our duty to strangers, our concern for the outsider, the hand of friendship across continents, that say I am my brother’s keeper, that we don’t only want injustice not to happen to us, we don’t want injustice to happen to anyone.

    Indeed the golden rule runs through every great religion – or what the Bible calls righteousness or what you and I might call justice – and the words of Gandhi reinforce this golden rule:

    ‘Whenever you are in doubt apply the following test. Recall the face of the poorest and the weakest man [woman] whom you may have seen, and ask yourself, if the step you contemplate is going to be of any use to him [her]…. Then, he said, you will find your doubts melt away.’

    So we are not – morally – speaking in tongues. And while there are many voices from many parts and many places, expressed in many languages and many religious faiths, we can and must think of ourselves coming together as a resounding chorus singing the same tune – and as a choir achieving a harmony which can move the world.

    So our interdependence leads us to conclude that when some are poor, our whole society is impoverished.
    And our moral sense leads us to conclude, as we have been told, that when there is an injustice anywhere, it is a threat to justice everywhere.

    But can we not also say – and this is my third point – that, even when we are talking about the needs of strangers, the claims of justice – that we should do our duty to ensure the dignity of every individual – are now more powerful than ever? It is because the dignity of the individual is at the heart of our concerns about human beings, that those claims of justice are not – as many once argued – at odds with the requirement for liberty but are essential for the realisation of liberty in the modern world.

    In her recent book Gertrude Himmelfaarb shows that, when the 17th and 18th centuries brought a revolt against outmoded forms of hierarchy, there was understandably a preoccupation not with justice or duty but with liberty. In 1789 ‘liberty’ literally came before ‘equality’ and ‘fraternity’.

    The call for freedom from outmoded forms of hierarchical obligations was then the only path to ending the power of absolute monarchs and repealing old mercantilist laws.

    But although the great Enlightenment philosophers marched under the banner of liberty, rightly wishing to prevent any ruler invading the freedom of the citizen, a closer reading of these writers shows that, for them, the march of individual freedoms did not release people from their obligations to their fellow citizens and fulfilling the duties they owed to each other. For them liberty was not at odds with justice or duty but liberty and duty advanced together.

    One of the greatest tribunes of liberty, John Stuart Mill, stated categorically that ‘there are many positive acts to the benefit of others which anyone may rightfully be obliged to perform’.

    And Rousseau wrote that ‘as soon as men ceased to consider public service as the principle duty of citizens we may pronounce the state to be on the verge of ruin’.

    And as Adam Smith – often wrongly seen as the patron of free market capitalism without a conscience – put it: the philosophy of ‘all for ourselves and nothing for other people’ was a ‘vile maxim’. ‘Perfection of human nature was to feel much for others and little for ourselves, to restrain our selfish and indulge benevolent affections’. And in that spirit and as he died Smith, not just the writer about the ‘invisible hand’ but about the ‘helping hand’, was writing a new chapter for his ‘Theory of Moral Sentiments’ entitled ‘On the Corruption of our Moral Sentiments’ which is occasioned by ‘the disposition to admire the rich and great and to despise or neglect persons of poor and mean condition’.

    So the great apostle of freedom believed passionately in justice and in duty to others and saw no contradiction in saying so. And in our century this should be our focus. We should be asking not just what rights you can enforce on others but asking what duties we can discharge for others.

    Selbourne says duties without rights makes people slaves but rights without duties makes them strangers.

    Moral strangers demand rights without duties.

    Moral neighbours say that every time one person’s dignity is diminished or taken away through no fault of their own it is an offence against justice.

    And if the dignity of a child or adult is diminished by poverty, or debt, or unfair trade, we are all diminished.

    Enlightened self interest may lead us to propose a contract between rich and poor founded upon our mutual responsibilities because of our interdependence. But it is our strong sense of what is just that demands a covenant between rich and poor founded on our moral responsibility to each other – that even if it was not in our narrow self interest to do so it would still be right for every citizen to do ones duty and meet the needs, and enhance the dignity, of strangers.

    My father used to tell me we can all leave our mark for good or ill – and he quoted Martin Luther King saying everyone from the poorest to the richest can be great because everyone can serve.

    That all of us, no matter how weak or frail, or at times inadequate, can make a difference for good is emphasised by a story told by Chief Rabbi Jonathan Sacks writing of the film ‘About Schmidt’. Schmidt – played by Jack Nicholson – describes a futile life of family estrangement ending in an equally meaningless retirement endured with an overriding sense of failure. In the film Schmidt says:

    ‘I know we’re all pretty small in the big scheme of things what in the world is better because of me? I am weak and I am a failure there’s just no getting around it…soon I will die…maybe in twenty years, maybe tomorrow, it doesn’t matter…when everyone who knew me dies too, it will be as though I never even existed…what difference has my life made to anyone? None that I can think of…none at all.

    But then he receives a letter from the teacher of a six year old in Tanzania whom in a small charitable gesture Schmidt has been paying for schooling and health care.

    The young boy cannot yet write, the teacher says, but he has sent Schmidt a drawing instead. It shows two little line figures, one large and one small, obviously the boy and Schmidt.

    And the drawing shows them holding hands together as the sun shines down upon their friendship.

    And so the film ends with Jack Nicholson’s character slowly grasping that he has done one good deed in his life – for a stranger – a young child far away whom he has never met.

    The duty to others done by Schmidt giving his life meaning.
    Proving that one generous act can redeem a life.
    So we do live in one interdependent world.
    We are indeed part of one moral universe.
    Even the meanest of us possesses a moral sense.
    What really mattes is the compassion we show to the weak.
    And you value your society not for its wealth and power over others but by how it can empower the poor and powerless.

    Now that moral sense may not, be ‘a strong beacon light radiating outward at all times to illuminate in sharp outline all it touches’ as James Q Wilson describes ‘The Moral Sense’ so brilliantly. Rather the moral sense is like ‘a small candle flame flickering and spluttering in the strong winds of passion and power, greed and ideology’. As Wilson says ‘brought close to the heart and cupped in ones hand it dispels the darkness and warms the soul’. And even when it burns as a flicker it is still a flame and a flame that can never be extinguished.

    So we do not wipe out the debt of the poorest countries simply because these debts are not easily paid.

    We do so because people weighed down by the burden of debts imposed by the last generation on this cannot even begin to build for the next generation.

    To insist on the payment of these debts offends human dignity – and is therefore unjust.

    What is morally wrong cannot be economically right.

    In the words of Isaiah – we must ‘undo the heavy burdens and let the oppressed go free’.

    So let me set out the agenda that flows from our moral sense.

    In 1997 just one country was going to receive debt relief.

    Now 27 countries are benefiting with $70 billion dollars of unpayable debt being written off.

    And it is thanks to your campaigning on debt relief that:

    – with debt relief in Uganda, 4 million more children now go to primary school;
    – with debt relief in Tanzania, 31,000 new classrooms have been built and 18,000 new teachers recruited;
    – with debt relief in Mozambique, half a million children are now being vaccinated against tetanus, whopping cough and diphtheria.

    But like me, I know you are less interested in what we’ve done than in what is still to do.

    And when many countries are still being forced to choose between servicing their debts and making the investments in health, education and infrastructure that would allow them to achieve the Millennium Development Goals, we know we must do more.

    That is why in 2005 we must break new ground, go much further than we have gone before, and why, having heard the proposals you put to us, we are proposing a new set of principles to govern the next stage in debt relief.

    First, that the richest countries match bilateral debt relief of up to 100 per cent with multilateral debt relief of up to 100 per cent so that all debts are covered.

    Second, that the cancellation of debts owed to the International Monetary Fund should be financed by using IMF gold.

    Third, that instead of running down the resources available internationally for development donor countries make a unique declaration that they will cover their share of the World Bank and the African Development Bank’s debts on behalf of eligible developing countries.

    And so that is why Britain has announced that we will relieve those countries still under the burden of this debt to these banks by unilaterally paying our share – 10 per cent – of payments to the World Bank and African Development Bank as we urge other countries to do so.

    Next, to put our duties to each other at the centre of policy, we also insist on a progressive approach to trade.

    And fair trade is not just about the financial gains, its also about giving people dignity – enabling people to stand on their own two feet and using trade is a springboard out of poverty.

    You know the damage that rich countries protectionism has done to entrench the poverty of the poorest countries.

    We spend as much subsidising agriculture in the European Union as the whole income of all the 689 million people in Sub Saharan Africa taken together.

    The money that the US spends just in subsidising 25,000 cotton farmers dwarfs the total income of Burkino Faso where 2 million people are dependent on cotton for their livelihoods

    And for every dollar given to poor countries in aid, two dollars are lost because of unfair trade.

    So 2005 is the time to send a signal and to agree a new policy.

    First, it is time for the richest countries to agree to end the hypocrisy of developed country protectionism by opening our markets, removing trade-distorting subsidies and in particular, doing more to urgently tackle the scandal and waste of the Common Agricultural Policy shows we believe in fair trade.

    Second, it is time to move beyond the old Washington consensus of the 1980s and recognise that while bringing down unjust tariffs and barriers can make a difference, developing countries must also be allowed to carefully design and sequence trade reform into their own Poverty Reduction Strategies.

    And third, because it is not enough to say ‘you’re on your own, simply compete’ we have to say ‘we will help you build the capacity you need to trade’ – not just opening the door but helping you gain the strength to cross the threshold. We have to recognise that developing countries will need additional resources from the richest countries both to build the economic and infrastructure – capacity they need to take advantage of trading opportunities – and to prevent their most vulnerable people from falling further into poverty.

    And our discussion of debt relief and trade leads to the essential challenge of 2005, that our new deal with the developing countries must involve a transfer of resources.

    Not aid as compensation for being poor but aid as investment in the future. And so like debt and trade this is about enhancing the dignity and potential of each individual.

    Since the 1980s aid to Africa, which was $33 per person ten years ago, had halved to just $19 per person now.

    So we need a new financing programme.

    Thanks to your campaigning, we are the first UK Government to be able to announce a timetable for 0.7 per cent.
    And over the next year we plan to ask other countries to join us and nine others in becoming countries which have set a timetable towards 0.7.

    But the truth is that the scale of the resources needed immediately to tackle disease, illiteracy and global poverty is far beyond what traditional funding can offer today.

    That is why the UK Government as part of the financing package to reach the Millennium Development Goals has put forward its proposal for stable, predictable, long-term funds frontloaded to tackle today’s problems of poverty, disease and illiteracy through the bold initiative of a new global finance facility.

    The International Finance Facility is in the tradition of the Marshall Plan of 1948, when to finance the development of a ravaged post war Europe, the richest country in the world – the USA – agreed to transfer one per cent of their national income each and every year for four years – a transfer in total of the equivalent in today’s money of $75 billion a year.

    And it is modelled on the founding principles of the World Bank in 1945 where nations provided resources to an international institution that then borrowed on the international capital markets.

    Let me explain what the IFF could achieve for the world’s poor.

    The IFF is founded upon long-term, binding donor commitments from the richest countries like ourselves.

    It builds upon the additional $16 billion dollars already pledged at Monterrey.

    And on the basis of these commitments and more it leverages in additional money from the international capital markets to raise the amount of development aid for the years to 2015.

    By locking in commitments from a wide range of donors, the IFF would enable us to front load aid for investment in development, enabling a critical mass of predictable, stable and coordinated aid as investment to be deployed over the next few years when it will have the most impact in achieving the Millennium Development Goals – saving lives today that would otherwise be lost.

    The IFF would enable us to invest simultaneously across sectors – in education and health, trade capacity and economic development – so that instead of having to choose between urgent emergency disaster relief and long term investment the impact of extra resources in one area reinforces the investment in another.

    And the IFF will allow us to attack the root causes of poverty not just the symptoms – focusing on developing the capacity and the dignity people need to help themselves.

    And let me just explain the scale of what I am proposing.

    In all our campaigns taken together we have managed to raise international aid from 50 billion dollars a year to 60 billion.

    Our proposal is to raise development aid immediately not from 60 billion to 65 billion or even 70 billion but effectively a doubling of aid to over 100 billion dollars per year.

    With one bold stroke: to double development aid to halve poverty.

    An extra 50 billion that will allow us to attack the root causes of poverty not just the symptoms, and to meet the Millennium Development Goals.

    The aim of the International Finance Facility is to bridge the gap between promises and reality.
    Between hopes raised and hopes dashed.
    Between an opportunity seized and an opportunity squandered.

    Of course we will continue to look at other means – international taxes, more resources direct to development banks, the IMF and the World Bank but the practical benefits of the IFF are:

    – we provide the support poor countries need immediately to invest in infrastructure, education and health systems, and economic development so they can benefit from access to our markets;
    – we provide grants to help ensure a sustainable exit from debt;
    – we make primary schooling for all not just a distant dream but a practical reality – meeting these needs and rights now and not deferring them to an uncertain future;
    – and we meet our global goals of cutting infant mortality and maternal mortality, eliminating malaria and TB and treating millions more people who are suffering from HIV/AIDS.

    I thank the Holy See and the growing number of countries who have indicated support for the IFF – including, of the G7, France and last week Italy.

    And let me give an example of what we can do today and now if we work together.

    Let me give an illustration of what – because of the IFF model – is already possible.

    The Global Alliance for Vaccines and Immunisation – who have immunised over the last five years not a few children but a total of 50 million children round the world – is interested in applying the principles of the IFF to the immunisation sector – donors making long term commitments that can be securitised in order to frontload the funding available to tackle disease.

    If, by these means, GAVI could increase the funding for its immunisation programme by an additional $4 billion over ten years, then it would be possible that their work could save the lives of an additional 5 million people between now and 2015.

    So in one fund, with one initiative, we can glimpse the possibilities open to us if we act together. If we could do the same for health, for schools, for debt, for the capacity to trade, for research and advance purchasing of drugs to cure malaria and HIV/AIDS, think of the better world we can achieve.

    So with next year – 2005 – the year of the UK’s G8 Presidency, the push for G8 progress starts now.

    You have set a challenge for 2005, with 2005 a make or break year for development, a moment of opportunity for development and debt relief, a challenge Tony Blair, Hilary Benn and I know we must, for the sake of the world’s poorest, not squander but must seize. An opportunity to make a breakthrough on debt relief and development, on tackling disease and on delivering the Doha development round on trade.

    We must rise to the challenge and we accept that we will be judged by what we achieve.

    So the task for Government now is to replace talk by action, initiatives by results and rise to the challenge – pledging to strive for urgent progress both on the priorities of finance for development and trade. And as you take forward your 2005 campaigns, I know you will hold us accountable as you have done so far, that you will challenge us, be the conscience of the world, be the voice that guides as at this crucial crossroads.

    Toni Morrison said that ‘courage is to recognise and identify evil but never fear or stand in awe of it’.

    And let that be our inspiration as we think of Africa.

    30,000 children will die needlessly today.
    If this happened in our country we would act now immediately together.
    We would indeed conclude it should never be allowed to happen anywhere.

    Yet today 30,000 children will die.
    Each child a unique personality.
    Each child precious.
    Each one loved, almost every one who could live if the medicines and treatments available here were available there.
    But each one of those 30,000 children will struggle for breath – and for life – and tragically and painfully lose that fight.

    And I know what you are thinking.
    If I could this day help one single child who might otherwise die live.
    If I could today and tonight prevent one avoidable death.
    If I could prevent a single child from needless suffering.
    If I could turn the despair of a mother worried about her child from desolation to hope
    Then it would make everything I do worthwhile.
    But if we could together by our actions help thousands, hundreds of thousands and millions.
    And if we could with all the power at our command, working together, collectively change the common sense of the age so that people saw that poverty was preventable, should be prevented and then had to be prevented, so that we met the Millennium development Goals not in 2150 but in 2015, then all else we do in our lives would pale into insignificance and every effort would be worth it.

    As Bono has said – It’s not enough to describe Everest. We have to climb it. And it’s not enough to picture the New Jerusalem. We must build it.

    But when people say debt relief, trade justice and finance for health and education is an impossible dream, I say:

    – people thought the original plans for the World Bank were the work of dreamers;
    – people thought that the Marshall Plan unattainable;
    – even in 1997 when we came to power people thought debt relief was an impossible aspiration and yet already with your support we are wiping out up to $100 billion dollars of debt;
    – people thought no more countries would sign up to a timetable for 0.7 per cent in Overseas Development Aid and yet year this year alone five countries have done so.

    So when the need is even more urgent and our responsibilities even more clear; and even when the path ahead difficult hard and long, let us not lose hope but have the courage in our shared resolve to find the will to act.

    Let us hear the words of Isaiah ‘Though you were wearied by the length of your way, you did not say it was hopeless – you found new life in your strength’.

    And let us answer with Isaiah also as our motto for 2005: that we shall indeed ‘renew our strength, rise up with wings as eagles, walk and not faint, run and not be weary’.

    A few weeks ago I cited a famous saying of more than one hundred years old – that the arc of the moral universe is long but it does bend towards justice.

    This was not an appeal to some iron law of history but to remind people that by our own actions we can and do change the world for good.

    And I believe that:

    – with the scale of the challenge revealed;
    – with the growth of public pressure you have started in Britain and in other countries;
    – and if there is a determination among world leaders to be bold;
    – building upon our moral sense, the arc of the moral universe while indeed long will bend towards justice in the months and years to come.