Soft Power and the UK’s Influence (Select Committee Report)

Lord Bilimoria Excerpts

Tuesday 10th March 2015 Lords Chamber

[Lord Bilimoria (CB)]

My Lords, I congratulate the noble Lord, Lord Howell, and his committee on this excellent report, Persuasion and Power in the Modern World. In fact the report shows why we need a permanent foreign affairs committee in this House.

In his evidence to the Select Committee, Professor Nye said that in today’s international relations it is,

“not just whose army wins, it is also whose story wins in an information age”.

I was in India, speaking on smart power, soft power and hard power—I am glad the committee made those connections—and I visited Mahatma Gandhi’s ashram. I reflected that if you are talking about soft power there is no better example than Mahatma Gandhi. One of his great quotes is “The battle of right against might”. He inspired Nelson Mandela. He has inspired so many people. I am delighted to say that on Saturday 14 March we will be unveiling a statue of Mahatma Gandhi in Parliament Square with the Indian Finance Minister and our Prime Minister. That is wonderful news.

There are so many examples of India’s soft power. One is yoga. There is going to be an international yoga day on 21 June. We should have yoga in Parliament. Another is Bollywood films. You could go on. We have heard example after example of the soft power that we have here in Britain. There is the BBC, to which almost every speaker has referred—and wow, this is the House of Lords, where we have the former director-general of the BBC, the noble Lord, Lord Birt, speaking so brilliantly about it. Then there is the British Council. I have been privileged to work with the British Council. It does amazing work and its budgets keep getting cut.

When we talk about soft power, it is also, in India’s case, the 25 million people of Indian origin around the world who are now reaching the very top—running some of the biggest companies in the world. The dean of the Harvard Business School is an Indian. The head of MasterCard is an Indian. The new head of Deloitte’s is an Indian. It goes on. That is also power. The British diaspora around the world is a huge source of power for us.

However, the worrying aspect of this, particularly in today’s world, is hard power. That is where this country—a tiny country with less than 1% of the world’s population—still has one of the most of the most powerful and effective defence forces in the world. Yet we had an SDSR in 2010 that was appalling, negligent and neglectful. We cut our Armed Forces brutally. We got rid of our aircraft carriers and our Harriers. As one of the world’s leading defence powers, we are without carrier capability in today’s environment. We needed them for Libya and we need them tomorrow. We do not have them. Who knows when they will arrive: perhaps in five years’ time if we are lucky. We also got rid of our Nimrods, while right under our noses the Russians are sending their submarines. We could do with those Nimrods. Yet we physically, brutally, destroyed those aircraft. I was at Wembley Stadium seeing Chelsea win the other day. Our army would not fill Wembley Stadium. That is shocking. To think that we could make this up by recruiting 30,000 reserves is wrong. Reserves are meant to be reserves. It is an oxymoron to say that reserves are permanent forces. We have, in any case, had difficulty recruiting them. That is very negligent. Are the Government committed to spending 2% of GDP on NATO now and in the future, with no further cuts to the Armed Forces going forward?

The Indian Prime Minister, Narendra Modi, is now one of the most powerful people in the world, with an outright majority in India. He is a brilliant orator in Hindi—I would say one of the best orators in the world. In one of his speeches in India he kept using the Hindi word “takhath”, which means strength or power. He was talking about hard power, soft power and smart power.

In this excellent report, almost every one of the witnesses testified that the Government’s new visa policies are harming the assets that build the UK’s soft power. In fact, the editor of the Economist, John Micklethwait, was scathing about how increased visa restrictions and costs have affected UK commerce, describing the system as—I use his words—“bananas” and “suicidal”. He said:

“All you need to do is to talk to businesspeople or, indeed, students in any other country who want to come and spend money here … It is completely useless in terms of recruiting people”.

I can vouch for that. It is the impression that we have created. Today, I was proud to host an event on international students, chaired by my noble friend Lord Hannay, with the Russell group in Parliament. Thirty-four per cent of academic staff at our Russell group universities—I am proud to be chancellor of the University of Birmingham, a Russell group university—are of non-UK nationality. Nineteen per cent of the undergraduates at Russell group universities are from outside the UK and—wait for this—47% of postgraduates are international students. That is how valuable they are to us. I know it; I was an international student myself when I came to this country. I know how difficult it was to raise the money to pay for the education over here. Yet, as a percentage of GDP, Britain spends half as much as the United States on higher education. As a percentage of GDP, we spend less than the OECD and EU averages on higher education.

When it comes to research and development and innovation—another great soft power—we way underspend as a percentage of GDP. Cambridge University, with 19 Nobel prizes, has won more Nobel prizes than any other university in the world. That is how well we do as a country. Yet we make it so difficult for international students, who bring in £14 billion. Education is one of our best exports and higher education is one of our strongest areas of soft power. In the United States it was found that of all patents registered at the country’s top 10 patent-generating universities, 76% had a foreign-born inventor. One of the founders of Google is foreign.

Yet you look ahead and you see the difficulty created by and the rhetoric that comes from—I am sorry to name her specifically—the Home Secretary. Forget Nigel Farage—even he objected to the vans telling illegal immigrants to “Go home”. When a £3,000 bond was proposed for all foreigners from countries such as India, alarm bells rang around the world. There were headlines in Indian newspapers when the Home Secretary stated that foreign students should leave the day after they had finished their studies. The Bangalore Mirror said:

“Come to the UK: Graduate, and then get the hell out!”.

The Times of India’s headline was:

“UK to ‘kick out foreign graduates’ to curb immigration”.

Is that the rhetoric that we want from the jewel in the crown of our higher education soft power?

We should introduce exit checks immediately. Can the Minister confirm that exit checks are carried out, whereby passports—EU and non-EU—are scanned for everyone coming into and going out of the country through our ports? When that happens, we will have more control over our borders.

Our music industry and our sports, with the Premier League, Chelsea and Manchester United, produce household names around the world. Does the Minister agree that we should set a target to increase the number of international students? I believe that we should have a specific target to do so every year. Also important are our creative industries. The Royal Family, too, was mentioned by the noble Baroness, Lady Hooper. Seventy-one per cent of Americans rate the Royal Family in terms of popularity. That figure is almost as high as it is here, at 77%.

I hope that the SNP never gets into power, because getting rid of Trident would be the most negligent act in this country.

My noble friend Lord Hannay said something about Britain punching below its weight. I am sorry; I normally agree with my noble friend but I think that Britain is a country that continually punches well above its weight. Our capability in every area lies at the heart of this debate, whether in high-end manufacturing, aerospace, beer, universities, the creative industries, film, music or our institutions. We are the best in the world.

However, what underpins it all—I conclude with this—is that there is one thing in the world that we are respected for more than anything else, and that is integrity. It was described to me best by our noble and right reverend friend Lord Williams, the former Archbishop of Canterbury, when he said that integrity comes from the Latin word “integer” or “integrum”, which means whole, complete and not fragmented. It means that you can stand up to the light and the fire and be absolutely pure, and this country has integrity.