Diplomacy

Lord Janvrin Excerpts

Thursday 11th November 2010 Lords Chamber

[Lord Janvrin]

My Lords, I add my thanks to my noble friend Lord Hannay for securing this Motion for debate today. I, too, declare an interest as a former member of the Diplomatic Service, although it was of a more humble status and variety than that of my noble friend.

This is a Motion of major importance and it is perhaps appropriate to be discussing it on Remembrance Day. If ever there was a reason to have a properly resourced and active diplomacy, it is to try to solve the world's problems, in Churchill's memorable phrase, through “jaw, jaw” rather than “war, war”. Beyond this, many of the other reasons for speaking in support of this Motion have been eloquently put forward by others, including in particular the importance of soft power, the World Service and the work done by the British Council.

I share many of the views expressed and particularly welcome the noble Lord, Lord Monks, and commend his maiden contribution today. I shall add my voice on two points—the issue of resources and the importance of retaining an active global network. On the issue of resources, I recognise that many government departments contribute to our diplomacy, but I should like to focus on the FCO's resources. This to my mind is the budget which is so crucial to the orchestration of our diplomatic activities overseas. The FCO's departmental expenditure limit in 2010-11, including the World Service and the British Council, is £1.6 billion. This represents less than 0.5 per cent of the Government's total budget. If you take out the new arrangements for the World Service funding, the FCO budget is to be cut by 10 per cent over the period of the spending review. Are we able to say now, “Thus far and no further”?

I do not doubt that there might still be some efficiency savings to make, but anything more than limited savings should in my view be strongly resisted, for two reasons. First, the Diplomatic Service has recently had to reduce its budget savagely in the light of exchange rate fluctuations, as my noble friend Lord Hannay reminded us. I welcome the spending review commitment to introduce a new foreign currency mechanism to manage exchange rate pressures. This must surely be right for the proper management of our diplomatic effort. I welcome anything that the Minister can tell us about this mechanism. Secondly, and most obviously, we are talking about really small amounts of money in overall government expenditure terms. Squeezing even limited savings out of the FCO budget will have a major impact on our diplomatic effectiveness; it will have precious little part to play in reducing our wider national budget deficit and we ought to recognise this.

This brings me to our global presence. We could trim our diplomatic reach to fit an ever smaller budget, but is this really the moment to do that? The world order is shifting; we have moved from superpower duopoly to G7/8 and now G20. The politics of globalisation, the economics of the emerging markets and the international consequences of climate change are shaping our diplomatic agenda. We have moved on from BRICs and are already looking at the emerging markets of tomorrow, including South Africa, Turkey, Indonesia, South Korea. The map of diplomatic and economic power is changing fast. We need to respond to the opportunities and the challenges of globalisation, not by withdrawing in on ourselves but by playing to our huge historical advantage of being an outward-looking trading nation with global links.

It is only by having a global network that we can be in a position to deal with the unexpected in this increasingly globalised world. We cannot know now what will be the future threats to our security, the opportunities for our business, or indeed the new pressures on our consular services. A properly resourced global presence must be part of the answer to dealing with the uncertainties of the future.

This brings me to my final point. Regardless of the internet and instant communication, it is only by having people in post and active on the ground around the world that we can continue to build and retain that deep political insight, that economic knowledge and that cultural perspective along with the language skills and the lasting, reliable contacts which are of real value to government and business. We need to retain that global network because once you close a mission, you lose it.

In conclusion, I pay tribute to the many men and women serving at home and overseas who are part of our national diplomatic effort. Many of them work in difficult and dangerous circumstances and they are certainly often the subject of admiration around the world. I am pleased to have this opportunity to speak in their support this afternoon.