Diplomacy

Viscount Waverley Excerpts

Thursday 11th November 2010 Lords Chamber

[Viscount Waverley]

My Lords, I am grateful for the suggestion that the Diplomatic Service be open to new ideas. While there is apprehension about the cuts, active diplomacy in certain areas can deliver mechanisms to achieve results with less. The way forward might be to recognise that the role of government in bilateral relations, and by extension diplomatic endeavours, should be to create the environment to allow all the sectors that make up those relations to thrive, and that the United Kingdom is essentially a private sector-driven economy and that it is not the role of government to deliver for the private sector a better structured public sector/private sector partnership, whether for the benefit of trade or for the myriad other benefits that make up relationships.

Much of this type of initiative could be self-funding, thereby freeing government financial resources. Has a full review taken place to consider how non-critical outsourcing could play a role in the diplomatic world? Consular activities have always seemed to be a natural candidate. The parallel-to-trade objectives of advocating the benefits of democratic principles—good governance, transparency and accountability, freedom of the press and human rights standards—could all be addressed in a similar manner by appropriate specialists in order to make diplomacy effective.

Resourcing diplomacy in the context of today's debate must also be about bolstering abstract diplomacy with concrete and figurative measures. Leaving aside the complexities of whether the ECGD could be privatised, for trade diplomacy to be successful three components must converge. The first is on-the-ground preparation by ambassadors and their staff. The second is the fullest engagement, at Secretary of State level and above, regularly to lead missions overseas and to leave more diary space for meeting incoming leaders in London. The third component—I declare an interest as I am on the advisory board of the newly formed Central Asia and South Caucasus Association at Asia House—is the formulation of a well-defined partnership between the UK's public and private sectors, made up of trade and industry councils and umbrella self-funding representative organisations. This structure could create cost savings and replace anything other than support in strategic emerging markets. The money saved could be used to resource more effectively overseas posts’ commercial endeavours, with the remainder moved over to the general Foreign Office budget.

I congratulate the Prime Minister on leading two recent successful missions to China and India. I also welcome the Foreign Secretary's initiation of policy reviews of relations with priority strategic countries such as Brazil and Turkey. However, these endeavours need to be replicated many times over. Leaders such as Chancellor Merkel and President Sarkozy regularly travel around the globe signing bilateral trade MOUs and cutting megadeals in out of the way places. Secretary of State Clinton has even been supporting American interests in Papua New Guinea, where I happened to be this week. It is a country of crucial strategic regional importance to the UK, but our diplomatic financial resource is close to zero.

My concluding thought is that the Minister might wish to look at more speedily matching to requirements the qualifications of FCO London-based staff. Diplomats often find themselves in the corporate pool on their return from overseas postings. This human resource should be put to more immediate use and not be left to stagnate.