Financial Security and Reducing Inequality in the Caribbean: Government Role

Patrick Grady Excerpts

Wednesday 8th March 2023 Westminster Hall

[Patrick Grady (Glasgow North) (SNP)]

I congratulate the hon. Member for Norwich South (Clive Lewis) on securing the debate. I also congratulate him on bringing some important and challenging issues to the House during what has turned out to be an extremely lively debate, involving brief but passionate and important contributions from the hon. Members for Nottingham East (Nadia Whittome) and for Brent Central (Dawn Butler), and indeed the hon. Member for Shrewsbury and Atcham (Daniel Kawczynski).

I echo the welcome from the hon. Member for Shrewsbury and Atcham for the high commissioner from St Kitts and Nevis. I quickly checked Hansard when the hon. Gentleman was speaking: since 2005, there have been 16 on-the-record references to St Kitts and Nevis—I suspect that by the end of the debate he will have gone a long way to doubling that. The name “Nevis” is derived from the Spanish for Our Lady of the Snows, which is appropriate considering the weather we are experiencing today.

I cannot speak to lived experience of the kind described by the hon. Members for Norwich South and for Shrewsbury and Atcham, but it is my privilege as Member of Parliament for a Glasgow constituency to represent an incredibly lively and diverse community, particularly those constituents with Afro-Caribbean heritage. That community itself is extremely diverse, and it draws on the heritage and experience of many different cultures. As we have heard, the Caribbean is not a homogenous entity, place or territory; it is culturally, politically and economically diverse. The region encompasses some of the most and least privileged communities in the world.

In choosing the title for the debate, the hon. Member for Norwich South was right to draw attention to the inequalities across the region and the challenges they bring. Take the disparities between Haiti and the Dominican Republic, for example. They are two countries on the same island—not a concept we are unfamiliar with in the United Kingdom—but a person born in Haiti is two and a half times more likely to die as a baby, has a much shorter life expectancy, and will grow up to be almost 10 times poorer than a counterpart on the other side of the island.

The hon. Gentleman is also right that the Caribbean’s social, political and economic landscape cannot and must not be understood outside the region’s colonial past, the effects of which live on to this day. It has been irrevocably shaped by the history of western imperialism, the slave trade and the colonial—and perhaps ongoing—extraction of natural resources.

The juxtaposition of extreme wealth and poverty across the region speaks to wider global challenges that emerge when excessive concentrations of wealth come at the expense of sustainable public services and transparency. Transparency International said:

“far from being victimless crimes, corruption and tax evasion deprive citizens around the world of much-needed public services while at the same time undermining institutions and democracy. Developing countries alone lose an estimated US$1 trillion each year to illicit financial flows.”

The UK Government know that only too well because several of their overseas territories in the region effectively operate as tax havens. The Cayman Islands alone are home to 85% of the world’s hedge funds and an estimated 100,000 registered companies, and report banking assets in excess of $500 billion.

The UK Government have to step up and play their part in tackling the illicit finance in their overseas territories. They could establish an illicit finance commissioner to monitor the presence of assets in overseas territories and Crown dependencies. They could ensure that their refresh of the integrated review has a dedicated focus on countering illicit finance flows and addressing corruption. They could establish a transparent and accurate ultimate beneficial owner register, enhance verification of that register, initiate investigations into known weaknesses, and accelerate timelines for entries linked to British overseas territories.

The Government also have to step up and do more to address challenges at the other end of the spectrum, as the hon. Gentleman said, including high poverty levels, instability and the legacy of slavery and colonialism. I talked about the extremes of inequality and instability that Haiti has experienced in recent years, through a combination of natural and man-made disasters that have made it the poorest country in the western hemisphere. The UK could take simple steps such as uplifting its emergency aid provision, working with the non-governmental organisations that are still present in the country, liaising with the UN High Commissioner for Human Rights when he makes an official visit, and exploring what the UK embassy in Port-au-Prince can do to formally document and escalate human rights abuses witnesses by British diplomats on the ground.

As the hon. Gentleman said, climate change is another major driver of inequality and instability. Again, people in the Caribbean are particularly at risk. Of the 511 natural disasters worldwide since 1950 that have hit small states, 324 have been in the Caribbean, killing more than a quarter of a million people and affecting more than 24 million through injury and the loss of homes and livelihoods. It is expected that by 2050, 1 billion people in low-lying coastal areas will face escalating climate risks that undermine adaptation efforts. Of the Caribbean’s 40 million inhabitants, 28 million live on the coast.

In addressing financial security and reducing inequality, the UK Government ought to address some of those points. They could learn from the Scottish Government’s commitment to a comprehensive sustainable loss and damage package to help developing countries tackle climate change. They could pledge to target the most climate-vulnerable countries first, which would include nations in the Caribbean. Of course, they will find it difficult to do that precisely because of the aid cuts that the hon. Gentleman spoke about.

Of course, the majority of the hon. Gentleman’s speech focused on the legacy of colonialism. He spoke incredibly powerfully about that, and he is right to put challenging questions to the UK Government and all of us in positions of responsibility.

[Daniel Kawczynski]

Does the hon. Gentleman, on behalf of the SNP, agree that irrespective of what the aid budget is today, a greater percentage of it ought to be going to Caribbean nations?

[Patrick Grady]

The distribution of aid should be determined on a needs basis, and it would be easier if there was more of the pot to go around. As I understand it, under the OECD and official development assistance rules, there are issues with how much of their budget the UK Government can give to countries that are essentially their own territories and have that counted as aid. However, they should be providing support of the kind that has been discussed, to enable those countries to raise themselves and their people to the standard of living that the rest of us take for granted. That is why I spoke earlier about addressing the impact of tax evasion and financial corruption. Huge amounts of money are flowing through some of these countries, but not everybody living in them is feeling the benefit. Perhaps if there was more transparency and fair taxation, some of those issues would be addressed.

I turn back to the question of colonial legacies. In recent years, many Governments and authorities across the United Kingdom, the US, Europe and other countries with historical involvement in the slave trade and colonialism have been asked, or are asking themselves, searching questions about how that legacy can be recognised and understood, and how amendments and apologies can best be made. The hon. Member for Norwich South was right to acknowledge the ambitious and pioneering actions of the Trevelyan family, who I know are paying close attention to today’s debate. I think we can all recognise that, in many cases, there is still quite a distance to go before justice is fully served, but there are exemplars and initiatives that point in the right direction. 

In recent years, the city councils of both Glasgow and Edinburgh have examined their historical involvement in the transatlantic slave trade, and have adopted motions of regret and apology for that. The review for City of Edinburgh Council was chaired by Sir Geoff Palmer, who was Scotland’s first black professor, and Glasgow’s report was conducted by Dr Stephen Mullen of the University of Glasgow and championed by Councillor Graham Campbell, Glasgow’s first councillor of Afro-Caribbean descent, who has been a real driving force in taking this issue forward.

When the report into Glasgow’s connections was published, the leader of Glasgow City Council, Susan Aitken, said that

“the tentacles of the slave economy reached far into Glasgow and helped build and shape this city. It also talks about the legacy of enslavement in the form of institutionalised racism in today’s Glasgow.

And this must be publicly acknowledged. We need to be honest about Glasgow’s history, our involvement in the slave economy, the attempt at creating a Scottish empire and our deep role in the British Empire. There are people who live every day with the legacy of their ancestors having been enslaved. We need to step up and apologise, to express contrition and sorrow for our part in the moral atrocity of slavery.”

As I said, the basis of that report came as a result of work by Dr Stephen Mullen of the University of Glasgow, who audited the city’s connections to the transatlantic slave trade. The university, which I am proud to represent in this House, has taken its own steps and committed to pay £20 million over the next 20 years in reparations, in recognition of its role in the slave trade. That money will be used to support a centre for development research at the University of the West Indies, which the hon. Member for Norwich South spoke about so highly.

There are therefore calls for the Scottish Parliament and the Scottish Government to act at a national level in this regard. Of course, there is a time of change upon the Scottish Parliament and the Scottish Government, so perhaps some of the concerns should be drawn to the attention of those aspiring to be our next First Minister. But we are here today to hold the UK Government to account, so I hope the Minister will look at the steps being taken by local authorities, universities and other institutions across the UK, and consider how the Government can recognise and respond to the legacy of slavery and colonialism, in which their predecessors were complicit. 

It is clear from the debate that people in the Caribbean, like people anywhere on this planet, deserve to live lives of dignity and respect, and enjoy basic financial security and freedom from stark inequalities. There have been significant suggestions today as to how the UK Government can work to achieve that, and I hope the Minister will respond appropriately.