Populism and Nationalism

Baroness Anelay of St Johns Excerpts

Thursday 19th January 2017 Lords Chamber

[The Minister of State, Foreign and Commonwealth Office (Baroness Anelay of St Johns) (Con)]

My Lords, I join in the congratulations offered to the noble Lord, Lord Bruce, on giving the House this opportunity to discuss and reflect on these extremely important issues. It is also a special day simply because it is the last Thursday of Liberal Democrat debates this Session. A fitting way to conclude is to reflect on these issues. I shall seek to echo that mood of reflection and rhetorical questioning that we have heard from around the House today.

The liberal international order, also called the rules-based international order, describes the system brought into being by the United States, the UK and other allies and partners in response to the horrors of the Second World War. I was born after the Second World War, but my father fought in it. I grew up in that atmosphere of recognising how we had to work together to avoid such a horror ever occurring again.

At its core, it is a system defined by economic openness; democracy and the rule of law; respect for human rights; and rules-based relations between states. It has become formalised over time through multilateral organisations such as the UN, the World Trade Organization, the World Bank and the web of international conventions, laws, agreements and norms which shape and regulate relations between nation states. This multilateral architecture has been underpinned by the economic and military power of the United States and its security alliances, including NATO, which together cover some 50 countries around our world. The democratic, rules-based international model was further strengthened by the collapse of the Soviet Union, its ideology and its client states.

Not all countries are democracies, but all countries which have signed up to the UN charter have committed to a set of binding principles on human rights, rule of law, peaceful resolution of disputes and collective action to solve problems. Multilateral institutions and democratic values are now central to discussions of good governance.

Since the Second World War, this system of laws, institutions, norms and values has helped us all to promote an exceptional period of economic growth and democratic transition across the world. It has lifted hundreds of millions of people out of poverty and spread political and economic freedoms.

The increasingly deep integration of trade, investment, people and information— otherwise described as globalisation—has been a particular feature of global growth during the past 25 years. The global economy has more than doubled in size since 1989. In 1981, almost half the world’s population lived in extreme poverty—I reflected on this as the noble Baroness, Lady Northover, was speaking. Today, that figure is less than one in 10. She was right to draw attention to the improvements that have been made and must continue to be made.

This economic transformation has been accompanied by extraordinary political change. In the past 30 years, the number of democracies has doubled. Working together, countries have improved the lives of many people around the world—from tackling human rights abuses, most recently on issues such as sexual violence and modern slavery, to prosecuting war crimes and genocide and finding solutions to global threats such as climate change.

The noble Baroness, Lady Northover, reminded us that, not long ago, some were suggesting that we had reached “the end of history”. As she made clear, that was a somewhat dramatic way of saying that the liberal international order looked set to remain unchallenged. It is now clear that this was complacent; the noble Baroness was right. Today, as many noble Lords have indicated, there are more challenges to the rules-based order and more concerns about the merits of this model than for many years.

The rise of China has led some to argue that economic development does not need, or automatically lead to, democracy. The gradual historic shift of economic power from developed to emerging economies has led others to question whether the current institutional architecture is still fit for purpose, and whether the new, emerging economies that have reaped the benefits of openness are now committed to shouldering some of the responsibilities of leadership. All this comes at a time when the continuing impact of the 2008 financial crisis has undermined the faith of electorates, not just in the competence of Governments but in the benefits of open economies. Free trade is stagnating. Protectionism is on the increase.

Alongside these economic changes, the world today feels more dangerous and more volatile. Political freedoms are under threat in some of our newer democracies and independent nation states. A nationalist rhetoric which seeks to blame others has resurfaced. The noble Lord, Lord Hannay, reminded us very clearly of some of the threats we face. For the first time since the Second World War, one European country—Russia—has forcibly annexed the territory of another. Russia continues to undermine the sovereignty of Ukraine, in contravention of its obligations. Russia is also supporting, in President Assad of Syria, a leader who has waged a brutal war against his people.

In the wider Middle East and across parts of Africa and south Asia, the nation state itself is under threat from violent, ruthless, non-state actors such as Daesh and al-Qaeda. These groups have an entirely different vision of a future world order, coupled with a determination to use terror globally to achieve their aims. Global conflict, most notably in the Middle East and Africa, has led to more than 60 million people being displaced from their homes—the highest number since 1945. These humanitarian catastrophes have put pressure on generous neighbours, aid agencies and the international system committed to giving a safe haven to refugees.

All these challenges are increasing the pressure on political systems, and raising fears for many that their children’s lives will be worse than their own. As parents, we know that parents strive to make improvements—that the future should be better for their family. While recognising these political challenges, we must be careful in our use of the terms populism and nationalism. As noble Lords have said, they are broad terms, interpreted in different ways. Popular discontent takes different forms from country to country. So-called populist or nationalist parties or movements can indeed appear, as we have been reminded today, on the left as well as the right, and may be responding to particular domestic circumstances and issues. Some are focused primarily on economic inequality. Some use xenophobic language, attempting to blame complex problems on others. Others are led by charismatic leaders with a personal political vision and agenda.

As my right honourable friend the Prime Minister has set out in her recent speeches, including today in Davos—I am grateful to my noble friends Lord Tugendhat, Lady Stroud and Lady Finn for referring to that speech in more detail—she has identified that the underlying problem is that many people in the developed world feel that the gains from global, open economies have not been shared equitably in recent years. People fear that globalisation has enriched corporations and elites and that it has opened the door to unfettered competition which has driven the decline of traditional industries and regions and destroyed jobs.

This Government argue that inequality and regional decline are not, and must not become, inevitable consequences of globalisation. We believe that competition can drive the efficiency, innovation and growth we need to build our prosperity. I was very interested in the speech of the noble Lord, Lord Stone of Blackheath, who talked about big data. That was a refreshingly different speech this afternoon—it just shows what the House of Lords can do. Furthermore, we must remember that more jobs are now lost to technological advancement and automation than to off-shoring, for example.

However, we all, in Parliament and in government, have a responsibility to assist those who have lost out. In my right honourable friend the Prime Minister’s words, we will be:

“A confident global Britain that doesn’t turn its back on globalisation but ensures the benefits are shared by all”.


In a changing world, we can shape both domestic and foreign policy to help people be better prepared to deal with the challenges of rapid economic change.

This also means that we must be robust in countering the xenophobia that is a feature of some populist and nationalist rhetoric, while also recognising the balance that must be struck on immigration, to which so many noble Lords have rightly referred. Immigration is important in developed countries: it brings us economic benefits, innovation and a diversity of skills and experience. However, we must ensure that the rate of immigration is at a pace which means that those arriving can be appropriately integrated into our communities.

Strengthening the rules-based international order and the institutions and values that underpin it remains the best way to ensure our collective security and prosperity, and to advance the UK interest. However, we also recognise that systems and institutions cannot remain unchanged. In a changing political and economic landscape, we need to look carefully at how institutions and rules can adapt to maintain legitimacy. That is why, for example, we joined the Chinese-led Asian Infrastructure Investment Bank. It is also why the UK supports enlarging the permanent membership of the Security Council of the United Nations to include important, rising global powers, such as India. We believe that emerging powers have benefited from the openness, transparency and rules of the existing order. The last 70 years have shown that this international order can be flexible and effective in adapting to profound political change and finding a way to reconcile political and cultural diversity. I am grateful to my noble friend Lord Sheikh for reminding us that it is essential that we respect that cultural diversity.

In this context, I come to the subject of the UK’s decision to leave the European Union. Some have ventured to suggest that the decision by UK voters last year may be part of the challenge to the current order but that interpretation would be fundamentally incorrect. As we have said many times and as my right honourable friend the Prime Minister made clear again in her speech at Lancaster House on Tuesday this week, the UK’s withdrawal from the European Union should on no account be interpreted as a rejection of the UK’s historic global role, of the institutions of the rules-based international order or of the universal values which we and our European partners champion. As is often said, we may be leaving the European Union as an institution but we are not leaving our European partners. We remain fundamentally committed to them all. We are not and never will be an inward-looking country; we have been and will remain a global Britain.

We recognise the extraordinary achievements of the European project in bringing peace and prosperity to a devastated and divided continent. We have Members in this House who have played a key role in that achievement. We will be embarking on a new kind of relationship with Europe but we will remain,

“reliable partners, willing allies and close friends”,

of our European colleagues. We will continue to work together to support an open, rules-based order that serves our shared values. We will retain the joint goal of shared prosperity, security and stability in our European neighbourhood and beyond. As has been reflected upon so often today, on many issues—such as the promotion and protection of human rights globally—it is vital that the UK remains the closest of partners in promoting human rights around the world, in our own country and within the European context.

I turn briefly to the incoming Administration of President-elect Trump. Much mention has been made of him, some of it not entirely flattering. Some outside this House have been tempted to draw early and potentially incorrect conclusions about the future direction of US foreign policy. A change in the US Administration invariably impacts on foreign policy, but the complex system of alliances and multilateral commitments which the US has supported since 1945, through different Administrations, is strong and enduring. Throughout our history, the UK has worked successfully with Republican and Democratic presidents to advance our mutual interests and tackle shared challenges. We have not always agreed, regardless of the party in power in Washington. However, we have always understood that nothing would fundamentally shake our strong bond based on history, mutual interests and shared values. That remains, so we expect that this will be the case with President-elect Trump. The US was instrumental in creating the rules-based order, including NATO, the cornerstone of European security, so we look forward to continuing our close co-operation with the US both to champion that order and to demonstrate active leadership in the UN and other institutions.

What can the UK do? The rules-based international order is clearly fundamental to our security and prosperity. We will face challenges. Noble Lords have reflected carefully on them. However, I am confident that, working with our key friends and allies and with the support of British parliamentarians in both Houses, we can navigate the development of a more resilient, inclusive international order over the coming years in line with our values and interests. The UK will continue to champion this system by promoting, with renewed vigour, the United Nations as the primary pillar of the rules-based system. We must remain passionate in our defence of its crucial role and mission, while continuing to seek reform through working closely with the new and most welcome Secretary-General, António Guterres. We will continue to work collaboratively with all partners to defeat global challenges, including terrorism, climate change and cybercrime, to which reference has been made. We will be robust in our defence against attacks on the rules-based order by those states and non-state actors who think that somehow the rules do not apply to them. They should, and they will. We will continue to work closely with our European allies in foreign and security policy, and following our departure from the European Union we will champion open economies and free trade. We will maintain our commitment to spend 0.7% GNI on development aid and 2% GDP on defence. We will continue to take a compassionate and pragmatic approach to global problems such as the migrant crisis, including supporting refugees in their region and seeking peaceful settlements in conflict-affected countries such as Syria, Libya and Yemen.

I am being reminded of the time. The UK remains an open, progressive, democratic country whose objectives are best served by a rules-based international order. That world order has delivered huge benefits. It remains robust, but it faces many threats. We all have a duty to continue to defend it and to ensure that it is in good shape for many years to come. This has been an important debate. I am finishing slightly early because otherwise I appreciate that the mover of the debate would have no opportunity to respond. I am glad that he raised this issue today.