Populism and Nationalism

Lord Risby Excerpts

Thursday 19th January 2017 Lords Chamber

[Lord Risby (Con)]

My Lords, I congratulate the noble Lord, Lord Bruce, on introducing this most timely debate. In industrialised societies, we are seeing the rise of political movements that are challenging liberal values and the consensus that has existed for decades. Two major countries continue single-mindedly to expand their interests—namely, Russia and China—which unnerves their neighbours. In some countries, religion is being used to further sustain the control and popularity of governing regimes. At the WEF meeting this week in Davos, it is precisely these themes which are sources of discussion and concern. The rise of nationalism and protectionism challenge existing multilateral co-operation and institutions, which is particularly difficult for countries which have led enhanced international co-operation and agreement.

I say this because, however critical and concerned we may be about these themes, it seems to me that we need to delve into some of the actual reasons for this in Europe and the United States in particular. After the Second World War, a remarkable level of social cohesion developed in many western societies. In the United States, manufacturing grew apace and living standards improved markedly across economic divides, irrespective of education or skills levels. In areas described today as the rust belt, there were jobs for all. In France, there is now nostalgia for the 30 glorious years of economic and social advance in the same period. Despite frequent industrial disturbances here, a former Prime Minister said that we had,

“never had it so good”.

I believe that much of this sense of alienation today arises from the embers of the financial crash of 2008. Some Governments had concluded that, in the prosperous preceding years, fiscal caution could be de-emphasised or even abandoned. With the resulting high budgetary deficits, traditional Keynesian responses to the crash were extremely difficult to pursue. Instead, central banks pursued a policy of very low interest rates; this in turn led to high asset inflation, the beneficiaries being those who could borrow money and participate often in property booms. Many citizens felt that those in the financial sector who had recklessly contributed to the financial crash escaped any real censure. Technology changes added to the concerns of those who felt separated from economic recovery, particularly in the United States, so that the very underpinnings of social cohesion began to fracture. High-end pay became in some instances wholly disconnected from successful performance. All this made for a combustible cocktail.

Institutional structures further aggravated this. If we look at Europe, at Laeken there was a serious discussion about how European citizens could feel a greater sense of ownership of the European Union and its institutions. In what would eventually emerge, even the most enthusiastic Europhile would accept that the promised sense of ownership was simply never restored. For example, no transitional arrangements were made here for citizens of the new accession countries and the assurances given were that the numbers coming here would be minimal. I happen to have supported the remain cause in the referendum last year but now, all over Europe, there is anxiety about the consequences of globalisation in practice, unrestricted free movement of labour, migratory flows that are in part simply economic, and human rights legislation that can overturn national responses. Much of the manifestation of the resulting populism and nationalism challenges the very democratic values that we all cherish, but we need to take care that the legal and institutional structures that we have constructed to enshrine these long-fought-for values do not in themselves appear inflexible, unresponsive or intolerant of people’s genuine concerns. The remain campaign focused on the economy—usually the basis for electoral success—but this was rejected by people feeling that their identity was being challenged by forces over which they had no control.

If we look down the track at the effect of artificial intelligence, for example, this will further challenge populism, because populism offers a false hope. The change of technology is likely to disappoint those who have supported it. We look at what is happening in France with Marine Le Pen offering protectionism as a solution to high French unemployment—a similar situation is being echoed in the United States. Mercifully, we do not have extreme left or right-wing political movements in this country. We remain a remarkably liberal and open society, but we have to guard against the undermining of this. To do so, we must not permit those liberal values to morph into illiberality, which is to turn a blind eye to negative social attitudes and practices while intolerantly closing down debate and open discussion that impacts the lives of our citizens, leading to their alienation. We in this country are fortunate to be able to resist protectionism and illiberalism. It is part of our role in this Chamber to ensure that those values are continued and cherished.