At a time of such unprecedented international economic and financial turmoil it is vital that progressive political leaders do not allow themselves to be buffeted into fearful responses or protectionism. This is the false path proposed by the right, shown to fail and worse still cause further crises throughout history.
Not only does a progressive response demand co-ordinated and robust action together to stabilise the world economy and secure recovery and jobs – it also demands that we do not forget the poorest and that we deliver a more sustainable future – a message which a unique coalition of trade unions, NGOs, faith groups and others came together to peacefully but forcibly make at their march through London this weekend.
Progressive leaders must continue to work together to provide a powerful vanguard in the process of building a recovery from the current crisis, of which this weeks London G20 Summit will be a key staging post – but not the conclusion.
We must never forget that behind the daily alarm of each new economic statistic sit human faces and future prospects – whether in Britain, Bangladesh, or Brazil.
Up to 90 million more people could be living in extreme poverty by 2010 – and many of the hard fought efforts that our Labour government has been at the forefront of leading internationally – to ensure less people go to bed hungry, more children go to school, and that poor people have sustainable jobs and livelihoods, could be put in jeopardy.
As well as the immediate impacts of the crisis – such as falling trade flows and jobs lost – there will be less money for developing country governments to meet their spending plans on health, education and vital infrastructure. The current and future impacts of climate change also loom as another major crisis which will hit the poorest hardest if we do not make green investments now.
That is why amongst the range of measures we hope leaders meeting in London will agree, it is vital that progressives lead the argument for specific measures to be taken to protect the poorest.
I am proud that our Labour government continues to make clear progress towards meeting the 0.7 per cent aid target – but we must work together to urge others to also keep their promises. At the same time as we are taking broader measures to stimulate economic growth, it would be both morally and economically foolish for countries to renege on the existing promises on aid to poor countries.
Global institutions must also step up their efforts. We have been arguing strongly that the World Bank and other multilateral development banks must increase and accelerate their investment and social spending in developing countries, and that there must also be further reform of the governance structures of institutions like the World Bank and IMF to make them fairer and more accountable.
We also need funds to directly tackle the impact of the global recession on households in the poorest countries. The World Bank has proposed a $5bn Vulnerability Facility for this purpose – which we will be supporting with a contribution of at least $250m.
We must also take strong measures to support international trade and reject protectionism. Progressive leaders must work with others to agree new trade finance support measures, and resist the temptation to turn inwards.
Working together to take measures to crackdown on tax havens would also provide a dual progressive outcome – helping ensure better regulation and more transparency in the world financial system, and responding to the increasing evidence of the negative impact of their activities on poor countries finances.
At the same time leaders must ensure that their stimulus and recovery programmes should be consistent with moves to a low carbon economy – and provide a positive signal for vital discussions going on this year to agree a successful and ambitious agreement in Copenhagen.
But above all the vital and specific initiatives we hope leaders will agree this week however, it is vital that a strong message of unity is sent out. I hope others will follow the calls of our Prime Minister Gordon Brown, and US President Obama – who rightly said in the Financial Times that “the most important task for us all is to deliver a strong message of unity in the face of crisis”.
Unexpected and challenging problems have and will continue to emerge on a daily basis as we traverse this unprecedented crisis – but just as the crisis has taught us that the interconnectedness of economies, businesses and people around the world provides the channels for problems to spread quickly and in unexpected directions – that same interconnectedness also provides a powerful positive channel to fight back – but only if all those in the system pull together.
Doing, especially at a global level, inevitably requires more effort and hard graft than doing nothing – but it is the right and just thing to do.
The Conservatives would do nothing but let the recession take its course.
Working with other progressives, we will continue to take whatever action is necessary – at home or abroad – to bring Britain and the world’s poorest countries through the downturn stronger and sooner.