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Why rigged capitalism is damaging liberal democracy

Economies are not delivering for most citizens because of weak competition, feeble productivity growth and tax loopholes writes Martin Wolf in The FT

“While each of our individual companies serves its own corporate purpose, we share a fundamental commitment to all of our stakeholders.”  

 With this sentence, the US Business Roundtable, which represents the chief executives of 181 of the world’s largest companies, abandoned their longstanding view that “corporations exist principally to serve their shareholders”.  

This is certainly a moment. But what does — and should — that moment mean? The answer needs to start with acknowledgment of the fact that something has gone very wrong. Over the past four decades, and especially in the US, the most important country of all, we have observed an unholy trinity of slowing productivity growth, soaring inequality and huge financial shocks.  

As Jason Furman of Harvard University and Peter Orszag of Lazard Frères noted in a paper last year: “From 1948 to 1973, real median family income in the US rose 3 per cent annually. At this rate . . . there was a 96 per cent chance that a child would have a higher income than his or her parents. Since 1973, the median family has seen its real income grow only 0.4 per cent annually . . . As a result, 28 per cent of children have lower income than their parents did.”

So why is the economy not delivering? The answer lies, in large part, with the rise of rentier capitalism. In this case “rent” means rewards over and above those required to induce the desired supply of goods, services, land or labour. “Rentier capitalism” means an economy in which market and political power allows privileged individuals and businesses to extract a great deal of such rent from everybody else. 

That does not explain every disappointment. As Robert Gordon, professor of social sciences at Northwestern University, argues, fundamental innovation slowed after the mid-20th century. Technology has also created greater reliance on graduates and raised their relative wages, explaining part of the rise of inequality. But the share of the top 1 per cent of US earners in pre-tax income jumped from 11 per cent in 1980 to 20 per cent in 2014. This was not mainly the result of such skill-biased technological change. 

If one listens to the political debates in many countries, notably the US and UK, one would conclude that the disappointment is mainly the fault of imports from China or low-wage immigrants, or both. Foreigners are ideal scapegoats. But the notion that rising inequality and slow productivity growth are due to foreigners is simply false. 

Every western high-income country trades more with emerging and developing countries today than it did four decades ago. Yet increases in inequality have varied substantially. The outcome depended on how the institutions of the market economy behaved and on domestic policy choices.  

Harvard economist Elhanan Helpman ends his overview of a huge academic literature on the topic with the conclusion that “globalisation in the form of foreign trade and offshoring has not been a large contributor to rising inequality. Multiple studies of different events around the world point to this conclusion.” 

The shift in the location of much manufacturing, principally to China, may have lowered investment in high-income economies a little. But this effect cannot have been powerful enough to reduce productivity growth significantly. To the contrary, the shift in the global division of labour induced high-income economies to specialise in skill-intensive sectors, where there was more potential for fast productivity growth. 

Donald Trump, a naive mercantilist, focuses, instead, on bilateral trade imbalances as a cause of job losses. These deficits reflect bad trade deals, the American president insists. It is true that the US has overall trade deficits, while the EU has surpluses. But their trade policies are quite similar. Trade policies do not explain bilateral balances. Bilateral balances, in turn, do not explain overall balances. The latter are macroeconomic phenomena. Both theory and evidence concur on this. 

The economic impact of immigration has also been small, however big the political and cultural “shock of the foreigner” may be. Research strongly suggests that the effect of immigration on the real earnings of the native population and on receiving countries’ fiscal position has been small and frequently positive. 

Far more productive than this politically rewarding, but mistaken, focus on the damage done by trade and migration is an examination of contemporary rentier capitalism itself.  

Finance plays a key role, with several dimensions. Liberalised finance tends to metastasise, like a cancer. Thus, the financial sector’s ability to create credit and money finances its own activities, incomes and (often illusory) profits. 

A 2015 study by Stephen Cecchetti and Enisse Kharroubi for the Bank for International Settlements said “the level of financial development is good only up to a point, after which it becomes a drag on growth, and that a fast-growing financial sector is detrimental to aggregate productivity growth”. When the financial sector grows quickly, they argue, it hires talented people. These then lend against property, because it generates collateral. This is a diversion of talented human resources in unproductive, useless directions. 

Again, excessive growth of credit almost always leads to crises, as Carmen Reinhart and Kenneth Rogoff showed in This Time is Different. This is why no modern government dares let the supposedly market-driven financial sector operate unaided and unguided. But that in turn creates huge opportunities to gain from irresponsibility: heads, they win; tails, the rest of us lose. Further crises are guaranteed. 

Finance also creates rising inequality. Thomas Philippon of the Stern School of Business and Ariell Reshef of the Paris School of Economics showed that the relative earnings of finance professionals exploded upwards in the 1980s with the deregulation of finance. They estimated that “rents” — earnings over and above those needed to attract people into the industry — accounted for 30-50 per cent of the pay differential between finance professionals and the rest of the private sector.  

This explosion of financial activity since 1980 has not raised the growth of productivity. If anything, it has lowered it, especially since the crisis. The same is true of the explosion in pay of corporate management, yet another form of rent extraction. As Deborah Hargreaves, founder of the High Pay Centre, notes, in the UK the ratio of average chief executive pay to that of average workers rose from 48 to one in 1998 to 129 to one in 2016. In the US, the same ratio rose from 42 to one in 1980 to 347 to one in 2017.  

As the US essayist HL Mencken wrote: “For every complex problem, there is an answer that is clear, simple and wrong.” Pay linked to the share price gave management a huge incentive to raise that price, by manipulating earnings or borrowing money to buy the shares. Neither adds value to the company. But they can add a great deal of wealth to management. A related problem with governance is conflicts of interest, notably over independence of auditors. 

In sum, personal financial considerations permeate corporate decision-making. As the independent economist Andrew Smithers argues in Productivity and the Bonus Culture, this comes at the expense of corporate investment and so of long-run productivity growth.  

A possibly still more fundamental issue is the decline of competition. Mr Furman and Mr Orszag say there is evidence of increased market concentration in the US, a lower rate of entry of new firms and a lower share of young firms in the economy compared with three or four decades ago. Work by the OECD and Oxford Martin School also notes widening gaps in productivity and profit mark-ups between the leading businesses and the rest. This suggests weakening competition and rising monopoly rent. Moreover, a great deal of the increase in inequality arises from radically different rewards for workers with similar skills in different firms: this, too, is a form of rent extraction. 

A part of the explanation for weaker competition is “winner-takes-almost-all” markets: superstar individuals and their companies earn monopoly rents, because they can now serve global markets so cheaply. The network externalities — benefits of using a network that others are using — and zero marginal costs of platform monopolies (Facebook, Google, Amazon, Alibaba and Tencent) are the dominant examples.  

Another such natural force is the network externalities of agglomerations, stressed by Paul Collier in The Future of Capitalism. Successful metropolitan areas — London, New York, the Bay Area in California — generate powerful feedback loops, attracting and rewarding talented people. This disadvantages businesses and people trapped in left-behind towns. Agglomerations, too, create rents, not just in property prices, but also in earnings.  

Yet monopoly rent is not just the product of such natural — albeit worrying — economic forces. It is also the result of policy. In the US, Yale University law professor Robert Bork argued in the 1970s that “consumer welfare” should be the sole objective of antitrust policy. As with shareholder value maximisation, this oversimplified highly complex issues. In this case, it led to complacency about monopoly power, provided prices stayed low. Yet tall trees deprive saplings of the light they need to grow. So, too, may giant companies.  

Some might argue, complacently, that the “monopoly rent” we now see in leading economies is largely a sign of the “creative destruction” lauded by the Austrian economist Joseph Schumpeter. In fact, we are not seeing enough creation, destruction or productivity growth to support that view convincingly. 

A disreputable aspect of rent-seeking is radical tax avoidance. Corporations (and so also shareholders) benefit from the public goods — security, legal systems, infrastructure, educated workforces and sociopolitical stability — provided by the world’s most powerful liberal democracies. Yet they are also in a perfect position to exploit tax loopholes, especially those companies whose location of production or innovation is difficult to determine.  

The biggest challenges within the corporate tax system are tax competition and base erosion and profit shifting. We see the former in falling tax rates. We see the latter in the location of intellectual property in tax havens, in charging tax-deductible debt against profits accruing in higher-tax jurisdictions and in rigging transfer prices within firms.  

A 2015 study by the IMF calculated that base erosion and profit shifting reduced long-run annual revenue in OECD countries by about $450bn (1 per cent of gross domestic product) and in non-OECD countries by slightly over $200bn (1.3 per cent of GDP). These are significant figures in the context of a tax that raised an average of only 2.9 per cent of GDP in 2016 in OECD countries and just 2 per cent in the US.  

Brad Setser of the Council on Foreign Relations shows that US corporations report seven times as much profit in small tax havens (Bermuda, the British Caribbean, Ireland, Luxembourg, Netherlands, Singapore and Switzerland) as in six big economies (China, France, Germany, India, Italy and Japan). This is ludicrous. The tax reform under Mr Trump changed essentially nothing. Needless to say, not only US corporations benefit from such loopholes. 

In such cases, rents are not merely being exploited. They are being created, through lobbying for distorting and unfair tax loopholes and against needed regulation of mergers, anti-competitive practices, financial misbehaviour, the environment and labour markets. Corporate lobbying overwhelms the interests of ordinary citizens. Indeed, some studies suggest that the wishes of ordinary people count for next to nothing in policymaking.  

Not least, as some western economies have become more Latin American in their distribution of incomes, their politics have also become more Latin American. Some of the new populists are considering radical, but necessary, changes in competition, regulatory and tax policies. But others rely on xenophobic dog whistles while continuing to promote a capitalism rigged to favour a small elite. Such activities could well end up with the death of liberal democracy itself. 

Members of the Business Roundtable and their peers have tough questions to ask themselves. They are right: seeking to maximise shareholder value has proved a doubtful guide to managing corporations. But that realisation is the beginning, not the end. They need to ask themselves what this understanding means for how they set their own pay and how they exploit — indeed actively create — tax and regulatory loopholes. 

They must, not least, consider their activities in the public arena. What are they doing to ensure better laws governing the structure of the corporation, a fair and effective tax system, a safety net for those afflicted by economic forces beyond their control, a healthy local and global environment and a democracy responsive to the wishes of a broad majority? 

We need a dynamic capitalist economy that gives everybody a justified belief that they can share in the benefits. What we increasingly seem to have instead is an unstable rentier capitalism, weakened competition, feeble productivity growth, high inequality and, not coincidentally, an increasingly degraded democracy. Fixing this is a challenge for us all, but especially for those who run the world’s most important businesses. The way our economic and political systems work must change, or they will perish.

Is Migration Inevitable?

By Girish Menon

In Mumbai, it appears that the taxis and autorickshaws are predominantly driven by migrants from Uttar Pradesh. In Kerala, as captured in the film Njan Prakashan, most of the physical labour is provided by migrants from the Bengal region. In the UK the nursing profession is dominated by migrants from Kerala and I don’t have to mention the Gulf where it is rumoured that one can get by with speaking Malayalam. These anecdotes do not adequately capture the migration of people all over the world.

This has led to resentment among the sons of the soil living in their ancestral lands. One of them speaking about Polish migrants felt ‘The Pole should get up every morning in Krakow, take a flight to the UK, pick fruit from the farms, collect the high wage and take a late flight back to Krakow’.

This shows that some sons of the soil admit that migrants fill a void in their labour markets and are a necessary evil to be tolerated.

On the other hand: the Brexit vote, the clampdown on the Mexican border, the identification of aliens in Assam show that political authorities are responding to their protests against uncontrolled migration.

So, why does this problem arise? Why do migrants leave their familiar surroundings to go to unfamiliar places and insist on working in increasingly hostile circumstances?

For starters, it could be that despite all the hardships faced in an alien land the migrant feels that his lot is still better than by continuing in his homeland. The film Peepli Live captures the distress in Indian agriculture, where despite all the government initiatives the protagonist finds himself leaving the village to work on a dangerous construction site in a big city. It is natural to assume that such a migrant would end up living in an illegal slum in that city.

Along with this group of desperate migrants there is also a group of economic migrants, this writer included, who seem to arbitrage the global shortage of skilled labour.

In the film Thackeray, Bal Thackeray the founder of the Shiv Sena alleged that South Indians, especially Malayalees, monopolised jobs in Mumbai and with their ‘clannish mentality’ would block opportunities for the sons of the soil. This sentiment has been echoed by similar politicians all over the world.

There is definitely some merit in their arguments too. 

In the UK around 2004 Tony Blair allowed free labour market access to newly joined  East European citizens. At the time there were no protests; the ruling Labour Party had ‘abolished boom and bust’ and the labour market was booming with wage hikes. The migrants were doing jobs that Britons did not want to do.

The feeling of anger only began following the 2008 financial crisis. The EU imposed strict austerity on the Euro member countries creating high levels of unemployment in their member states. The UK’s high minimum wage then acted as a magnet for migrants from the EU.

At the same time, in 2010 David Cameron’s UK government was ideologically committed to austerity and ‘balancing the budget’. They introduced severe funding cuts for schools, healthcare and welfare benefits. Thus, if you were an unemployed Briton living in Stevenage you suddenly discovered that the unemployment benefits were cut forcing you to look for a job while UK employers preferred foreigners for their higher productivity. This Stevenager’s family members also had to compete with Spaniards for reduced school places and Poles for access to the highly restricted health service. 

Thus the revulsion to the foreigner may not have arisen without the deliberate and untimely austerity imposed by the Conservative-Liberal Democrat government.

So, is migration inevitable? Yes and no.

From a theoretical perspective, only having free movement of capital but not permitting free movement of labour goes against free market logic and globalisation. This is also a violation of Ricardo, because labour rich countries are being prevented from benefiting from their comparative advantage. So, if there is free movement of capital, goods and services then, unlike Boris Johnson’s argument, it is incumbent on labour rich countries to demand free movement of labour.

Nonetheless, there will always be some economic migrants who will arbitrage the wage differentials in the world. Also, there will be others who are fleeing political persecution in their respective countries.

However, some of the migration can be controlled. There could be a universal basic income available to all the inhabitants of a common market. This basic income could be determined on the basis of the minimum income required to live in the most prosperous province in a common market. Such an income will enable the prospective migrant to live a luxurious life in his depressed province and act as a deterrent to migration.

In the UK, some Conservative party members who colluded in imposing austerity and who lauded the growth of food banks have convinced Stevenagers that their economic woes are solely due to foreigners. This fear was fortified enough to win the Brexit referendum. Now the question remains if the EU elite will accept their demands for a free movement of goods and services and end the free movement of labour.

Since the interest of the EU elite are not the same as its peripheral members I will not be surprised if they collude with Johnson’s cohorts. Will this lead to peripheral members of the EU asking for an exit as well? I will not be surprised.

Prof. Wolff on "The Basic Economics of Immigration"

How one man’s story exposes the myths behind our migration stereotypes

Robert, a Romanian law graduate, didn’t come to the UK to undercut wages. But he ended up in insecure low-paid work writes Aditya Chakrabortty in The Guardian

 

Anti-Brexit protesters in November. ‘The likes of Robert make the easiest human punchbags. You rarely see him or the millions of other EU citizens living in Britain on your TV.’ Photograph: Daniel Leal-Olivas/AFP/Getty Images


Amid all the true-blue backbench blowhards and armchair pundits who will occupy the airwaves this Brexit week, one thing is guaranteed: you won’t hear a word from Robert. Why should you? He commands neither power nor status. He has hardly any money either. And yet he is crucial to this debate, because it is people like him that Brexit Britain wants to shut out.

Robert is a migrant, under a prime minister who keeps trying and failing to impose an arbitrary cap on migrants to this country. Born in Timişoara, Romania, he now lives in a democracy that barely batted an eyelid when Nigel Farage said it was OK to be worried about Romanian neighbours. And Robert gets all the brickbats hurled at foreigners down the ages – that he’s only here to take your jobs and claim your benefits (at one and the same time, mystifyingly), to undercut your wages and give nothing back.


What’s left is a 38-year-old tearing himself apart over his broken life. ‘I’m an idiot,' he says. ‘I’ve wasted myself.'

The likes of Robert make the easiest human punchbags. You rarely see him or the millions of other EU citizens living in Britain on your TV. Nor do you hear about them from a political class forever chuntering on about the will of the people, yet too aloof from the people to know who they are or what they want, and too scared of them to engage in dialogue.

Yet Robert (he’s asked that his surname be withheld) is no caricature. It’s not just how he dotes on his daughter and has a streak of irony thicker than the coffee he serves up. It’s also how his life in Britain proves that those declaimed causes of Brexit are both too easy and too far off the mark. However sad his story, it also shows where our economy really is broken – and how it will not be fixed by kicking out migrants.

We met a few weeks ago at his flat on the outskirts of Newcastle upon Tyne. Too bare to be a home, its sole reminder of his old family life is a little girl’s bedroom, kept in unchildlike order for his daughter’s weekend visits. He and his wife split a few months ago, he says, when the family’s money ran out. What’s left now is a bank account in almost permanent overdraft and a 38-year-old man tearing himself apart over his broken life here. “I’m an idiot,” he says. “I’ve wasted myself.”

But please, spare him the migrant stereotypes. Low-skilled? Robert came to the UK in 2008 with a law degree and speaking three languages. Low aspirations? Even while grafting in restaurants and hotels, he fired off over 100 applications for a solicitor’s training contract. That yielded just one interview, in Leeds. Local firms that were happy to have him volunteer for free proved more reluctant to give him a paying job. He ended up in a part of the country that has spent most of the past 40 years trying to recover from Thatcherism’s devastation, and which is even now paying the price in cuts for the havoc wreaked 10 years ago by bankers largely based hundreds of miles away. In a country where relations between regions are as lopsided as they are between workers and bosses, the odds were stacked against him from the start.

Finally, Robert signed with a temp agency, PMP Recruitment, which in August 2012 placed him with the local Nestlé factory. And that’s where trouble really began.

He had just enrolled in the precarious workforce, which at the last count numbered just over 3.8 million workers across the UK. Never guaranteed work, he had to wait for the offer of shifts to be texted to him a few days beforehand. He did days, nights, whatever was given, and started on the minimum wage in Nestlé’s Fawdon plant – a giant place churning out Toffee Crisps and Rolos and Fruit Pastilles. It was no Willy Wonka-land.

Robert began by “spotting” – standing on a podium overlooking the Blue Riband production line and pulling out imperfect chocolate bars. Seeing the conveyor belt spool along for hours on end made him dizzy, and another recently departed worker tells me he couldn’t bear to do it for long (Nestlé says it has “rotation processes for work that is particularly repetitive”). Stubborn pride made him stick it out for 12-hour shifts. “Leave your head at home,” workmates would advise and, amid the exhaustion of shifts and raising a family, that’s what he did. But bit by bit he noticed things were wrong.

As an agency worker, he says he was doing the same tasks as Nestlé staff, but for less money. They got a pay rise, he alleges, that agency workers didn’t. He would do work classed by the company as “skilled” but instead got “unskilled” rates. His former workmate, who doesn’t wish to be named, tells me this was common practice: “If Nestlé wanted you to come in at an awkward time, they’d say, ‘We can pay you skilled rates’.” Over the years, Robert estimates that he lost out on about £26,000 of income.

Robert was in no man’s land. He was spending his days working for Nestlé but was not their direct employee – even though he gave five years of service at Fawdon. Nor did he have much to do with his recruiters at PMP, a nationwide agency. As for the plant’s trade unions, he saw them as “a waste of space”. He was trapped in an institutional vacuum. The chair of the Law Society’s employment law committee, Max Winthrop, describes such arrangements – working for one company while on the books of another for years on end – as a “fiction”. “The most generous way you can look at it is, it’s a confusing situation. The least generous is that it’s a deliberate attempt to throw sand in everyone’s eyes so we can’t see the true nature of the relationship.” Nestlé says that of its 600 staff at Fawdon, 100 are agency, all via PMP. Over the years, Robert says he saw hundreds of agency staff come and go.

When Robert raised the issue with Nestlé managers, he alleges that shifts were no longer given to him. Finally, just before last Christmas, he resigned. He then tried to get other agency workers to join him in taking Nestlé to court, but they were, he says, “too nervous”. So he launched an employment tribunal case alone and, a few weeks after we met, Nestlé settled out of court. One of the conditions of the settlement is that he cannot discuss it, but Robert knows this article will appear. Citing confidentiality, Nestlé did not want to comment directly on his case but says that, since 2014, all staff in its factories get the living wage, and “we refute any allegation that working conditions at our Fawdon factory are below standard”.

On his PMP payslips Robert also noticed that – as a result of the “recruitment travel scheme” in which the agency had enrolled him – some months he was getting less than minimum wage, a situation for which Winthrop says he “cannot find any justification”. He took PMP to court too, and a couple of months ago was awarded over £2,000 in back pay. PMP wouldn’t comment for this piece, other than to say it is appealing the verdict.

The best way to defeat a crass generalisation is with specifics, and what Robert’s story tells you is it’s not the migrant worker doing the undercutting here. He even tries to get his British-born workmates to join him in a class action for what’s rightfully theirs. The real problem is instead the imbalance of power between the worker and the employer, which is happily maintained by the same politicians today who claim they want to help the “left behind”.

PMP and the 18,000 or so other employment agencies in Britain are overseen by a government inspectorate of just 11 staff. The director of labour market enforcement in the UK, David Metcalf, admits that a UK employer is likely to be inspected by his team only once every 500 years. Were I an unscrupulous boss, I would take one look at those numbers and ask myself: if I do my worst, what’s the worst that can happen?

What keeps Robert here now is those weekends with his daughter. But after 10 years in Britain he’s learned something else too, about the reality of a country that claims to welcome foreigners, even as they punish them. An economy that promises a better life to those it then sucks dry. A society that kids itself that it’s a soft touch when really, it is as cold and hard as any interminable overnight shift.

How would Corbynism work in government? Here’s a clue

Aditya Chakrabortty in The Guardian


What will a Corbyn government actually do? Brexit aside, British politics has no bigger known unknown. The prospect fills the rich with fear and the left with hope. Both sides assume that Prime Minister Jeremy Corbyn will be defined by his radicalism, yet in one corner of Britain an arm of the state is already ruling in his name. And the early results are sobering.

In the north London borough of Haringey, the Blairite council leadership was deposed by Labour members a few months ago and replaced with avowed leftwingers. Said the new council leader, Joe Ejiofor: “Over the next four years, it will be up to us to show everybody what this mythical beast the Corbyn council does.” The title may not have been of his making, but by God was he going to wear it. “It is for the many, not the few.”

Everybody cheering that May morning knew what he meant. No more slinging families out of their homes to clear way for multinational developers. No more machine politics and trampling over communities. No more of the politics of contempt.

It was the willingness of the previous leader, Claire Kober, to hand swaths of the borough over to giant building companies that forced her out of office. The Corbyn councillors know they’ll be judged on how far they protect locals from a predatory property industry, which is why they have cancelled the terrible Haringey Development Vehicle. But a real case study of the possibilities and pitfalls of Corbynism in government can be seen right now, in the battle over a small market in Tottenham.

Everyone’s first impressions of Seven Sisters market are terrible. No signs welcome passersby, and the front is almost truculent in its tattiness. But venture inside, and, as another Guardian contributor wrote of a visit: “Within a minute of arriving it was obvious to me that it is irreplaceable.” Because it is magic: a warren of stalls, customised with wooden balconies and eaves, where nearly all the shopkeepers are from Latin America. They sell Colombian coffee and Argentinian meat and films from back home. The soundtrack is a babble of Spanish and salsa. Latin Americans, among them Corbyn’s wife, Laura Alvarez, flock here from across the capital.

“Without this market, the community would have a mental breakdown,” says Vicky Alvarez, who runs a hairdresser’s. In a city that brags of its openness to the world, here’s a corner that bears that out. In a nation of shopkeepers, here are migrants grafting to realise their dreams. About 80 families rely on the so-called Latin Village for their living. Generations of kids have been raised here, playing in the plywood warren. Alvarez says, “We are like meerkats, watching over each other’s children.”

It may take a village to raise a child, but it has taken migrants to raise this village. I remember when this place was semi-derelict.

Anywhere else, the Latin Village would be a prize attraction – but Haringey has decided it should be knocked down and handed over to Britain’s biggest private residential landlord to redevelop. Grainger’s plans include nearly 200 homes, not one of which will be at council rent. The architects’ drawingsshow a Costa and a “Pasta Express”. It is BlandTown, and Labour signed off on the lot. The politician who has done most for the largely Corbyn-supporting traders is a Tory: Boris Johnson, as London mayor, decreed that the indoor market had to be protected.

‘Everyone’s first impressions of Seven Sisters market are terrible.’ Photograph: Alamy

Like many of the headaches that await Prime Minister Jez, this was one Ejiofor’s team inherited. The complication is that a key part of the land, which sits right above a tube line, is owned by Sadiq Khan’s Transport for London (TfL). Yet the Corbyn council has made the issue worse. It needed someone in charge of regeneration who was allergic to the charms of property developers, but the new leader has instead appointed Charles Adje. Just a few years ago Adje was suspended as a councillor for covering up an official note warning against giving a licence to an especially controversial developer. Asked about this, the council says Adje “made an error of judgment”.

Within weeks of becoming leader, Ejiofor received a lawyer’s letter from traders in part detailing their problems with the man who owns the lease to the market. Jonathan Owen was last year reprimanded by TfL for phrases such as “bloody illegal immigrants”, and declaring at a meeting that “if I wanted to, I could get rid of 90% of the traders here”. The official investigation I have seen notes that he has apologised for the behaviour. He remains in place, paying £60,000 a year for the lease while taking what stallholders conservatively estimate is £340,000 in rent from all of them. The traders have previously offered £100,000 to manage the lease themselves, but TfL took the lower bid.

Very little of that money seems to have been reinvested in the market: carpet tiles are broken and filthy and the electrics keep breaking, so the cafes and butchers’ foodstuffs rot. Questioned about this and other issues, Owen offered no comment. When traders asked last month whether the drains could be unblocked, Owen’s reply was: “When was the last time you cleared the drains in your house?”

This is the Corbyn council’s first big test, and handling it ought to be simple. They’re supposed to take the side of the people, not builders. Their manifesto promises: “Where we have to regenerate parts of the borough, we will bring residents with us.” At a meeting this summer opened by Corbyn ally Chris Williamson, Labour members across the borough voted to stop any demolition of Latin Village, and to save it as a “cultural asset”. Ejiofor’s team has a mandate; it’s just not upholding it. 

Rather than taking up the traders’ case, Ejiofor and Adje have fobbed them off. Instead of Haringey cracking down on the market manager, last month it sent an enforcement officer to hassle traders. A pregnant woman running a nail bar was found without a licence, and told to close the shop. In a complaint that I have seen, she said she had felt “embarrassed and humiliated” in front of customers and neighbours. Days later, she miscarried.

This small story carries big lessons for all those hoping for a radical alternative in national government. Ask Haringey cabinet members why they have handled this so badly, and they complain about having a plateful of poison pills left by the last lot. One says: “It’s so difficult to shift the bureaucracy.” Any Corbyn administration will face both of these problems, multiplied a hundredfold.

None of the above is intended to damn a council leadership that’s only five months old and which has some good ideas about cutting council tax for the working poor. Nor is it meant to put on the frighteners about a Corbyn government. But any new Labour administration will be judged on how much change it makes for the people it claims to represent, and how far it represents the social movements whose energy it draws upon. This is the age-old tension of Labour in government, and it will be felt especially keenly by a social-movement politician like Corbyn.

Locally or nationally, no radical government will have it easy. Money will be tight, and Britain has political and economic structural problems that will take decades to put right. Which is why the case of the Latin Village is so instructive. A council must be able to pick the right side in a fight as small as this. It ought to be able to follow some basic principles. Let traders run their own market, and invest in the Latin Village as a local gem. A bit of imagination, a dollop of willpower, lashings of principle. The Corbyn council should learn from this case. Its supporters expect better; the traders deserve better.

Windrush saga exposes mixed feelings about immigrants like me

Abdulrazak Gurnah in The FT

In 1968, soon after arriving in England from Zanzibar as an 18-year-old student, I was talking with a friend while a radio played in the background. At some point we stopped talking and listened to a man speaking with tremulous passion about the dangers people like me represented for the future of Britain. 

It was Enoch Powell and we were listening to a clip of his “Rivers of Blood” speech. I knew little about British politics and did not know who Powell was. But in the days and weeks that followed, I heard him quoted at me by fellow students and bus conductors, and saw television footage of trade union marches in his support. 

I have lived in Britain for most of the past 50 years and have watched, and participated in, the largely successful struggle to prevent Powell’s lurid prophecies about race war from coming true. But it would be foolish to imagine that all is set fair for the future of Britain and its migrant communities, because every few weeks we are provided with another example of the obstinate survival of antipathy and disregard. The treatment of the children of the “Windrush generation” who moved to the UK from the Caribbean several decades ago is the latest such episode. 

The injustice is so staggering that Theresa May, the prime minister, and Amber Rudd, the home secretary, have been forced to apologise. But the consequences for Caribbean migrants who grew up in Britain of the “hostile environment” for illegal immigrants could hardly have been news to them. 

In 2013, at the instigation of the Home Office, vans emblazoned with the message “Go home or face arrest” drove around parts of London with large immigrant populations. It may not have been intended that the clampdown on illegal immigration would snare such embarrassing prey as children of migrants who spent a lifetime working in the UK; but political expediency required that this small complication be ignored until it went away. That it has not is a result of the work of welfare, legal and political activists to make sure that the abuses against migrants and strangers are kept in plain sight. 

Before the second world war, there was no law to restrict entry or residence in Britain for people who lived in her colonial territories. That is what it meant to be a global empire, and all the millions who were subjects of the British crown were free to come if they wished. There was no need to worry about controlling numbers because, if they became a problem, they were sent back, as happened after the race riots in various British port cities in 1919. In a rush of imperial hubris, the British Nationality Act was passed in 1948 to formalise the right of British colonial subjects to enter and live in the UK. 

If the 1948 law was a desperate recruitment poster for cheap labour disguised as imperial largesse, the purpose of the successively meaner pieces of immigration legislation that began in 1962 was to slow and ultimately stop the arrival of dark-skinned former subjects of the British crown. It continued Britain’s centuries-long prevarication between sanctuary and xenophobia. 

Why has the Windrush saga been so embarrassing for the government? The answer has to do with Britain’s fraught relationship with the Caribbean and a history of racial terror instigated and supervised for centuries by British money and power. Caribbean institutions are still largely modelled on British ones and, until recent disillusioning decades, the Caribbean sense of identity was linked with a connection to the British empire. It is remarkable that this should be so given the brutalities of the plantation economies that prevailed in the Caribbean territories. This is an ambivalence that Caribbean intellectuals have reflected on for more than a century. The most perfunctory browse through the writing of the region will provide examples of its intricate legacy. 

What is now referred to as the Windrush generation was far from homogeneous. It included peasant workers, nurses, teachers, writers and artists. They came in response to the recruitment drive and because they were ambitious for a better life. They are in Britain for the same reasons that all migrants are here. 

In time they brought their children, and those children grew up, were educated and worked all their lives in this country. As any stranger knows, particularly if he or she is black in Europe, it is vital to keep your paperwork in order. What recent events have shown is that not all the children of the Windrush generation did because they were confident that they were at home and had no need to prove their right to be here. It seems they reckoned without the ruthless politics of contemporary Britain, in which xenophobia and hatred do not repel, but instead win votes. 

The Windrush saga has made headlines this week, but it has been going on for months — the bullying letters, the threatening sanctions against employers, the loss of employment, the withdrawal of benefits and healthcare, the detention and expulsion. Bullying in pursuit of bringing down the immigration numbers is never just or humane. But it is wrong to deny these people what are evidently their moral and legal rights. Their contribution to British society and culture has been immense. 

When it became clear the law had caught the wrong people, someone should have called a halt instead of pressing on with the bullying. As Sentina Bristol, the mother of Dexter, a 57-year-old man born a British subject in Grenada who died after several months of going through this process, observed of the government in a recent interview: “They are intelligent people, they are people of power. We expect better from them.”

Why Brexit Britain needs to upskill its workforce

Simon Kuper in The FT

A British hospital director told me he was hunting for staff to replace foreign doctors and nurses leaving because of Brexit. He hadn’t found many qualified Britons queuing to replace them. In fact, he specified: “Not one!” 

You could interpret this as yet another cautionary tale about Brexit. In an age when the chief global business cliché is the “war for talent”, the UK is fighting a war against talent. But if I were a Brexiter, I’d say: Brexit should be the prompt for Britain finally to start training enough of its own talent. 

Obviously, I’m not arguing that every departing foreigner frees up a job for a Briton. Economists dismiss such reasoning as the “lump of labour fallacy”. Rather, I’m saying that if the UK wants to avoid economic decline, it will need to train far more of its own nurses, construction workers, bankers, architects, etc. For a country whose policy has always been not to educate the working class, that would be a reversal of history. It would come too late for the over-45s (the generation that actually voted for Brexit), but it could transform the futures of young Britons. And it’s doable. 

The British tradition is to educate each class separately, writes historian David Cannadine in Class in Britain. Even in the 18th century, posh males went to public schools and Oxbridge, whereas the poor were taught almost nothing. The purpose of education then, says Cannadine, “was more to teach people their place than to give them opportunities to advance”. His words apply pretty well to today’s country. The alumni of nine expensive “public” schools are now 94 times more likely than the average Briton to reach the elite, according to London School of Economics research. (The conservative Daily Telegraph reported the findings under the headline, factually accurate as far as it went, “Boys’ public school dominance over British elite has ‘diminished significantly’ over time”.) 

The UK — without any more wars of conscription and with few surviving factories or mines — now struggles to find a use for low-skilled people who live in places where they can’t perform personal services for higher castes (see this week’s cover story on Blackpool). 

Before Brexit, the rest of the country didn’t need these people. High-skilled immigrants staffed world-class British sectors such as the City and London’s creative economy. In healthcare, the UK developed a brilliant racket: let a poor country like Romania fund a nurse’s education, then underpay her to look after sick Brits. Low-skilled immigrants eager to work all hours for little money gave the UK cafés, carers and corner shops that seldom closed. Low-skilled Britons could have done these jobs, but mostly didn’t. 

The coming wave of British talent is largely immigrant too: the kids who have made London’s state schools the UK’s best, plus the offspring of Russian, Chinese and other foreign elites who fill the public schools. Many of these people would love to stay and make the UK richer. 

But Brexiters want to cut immigration. The obvious, if tricky solution: equip working-class Brits to do jobs from nursing to banking. “That’s the opportunity,” says Charles Leadbeater, a consultant who has long advised British governments on innovation and education. “I just think it won’t happen. It would require something like a wartime national mobilisation of people and skills. That would require state leadership of the kind most Brexiteers abhor.” 

Leadbeater points out that Tory Brexiter politicians — almost none of whom send their children to state schools — rarely talk about apprenticeship schemes à la Switzerland. Instead, their vision seems to be a low-tax, low-regulation Britain. 

Jonathan Portes, economics professor at King’s College London, adds: “The problem of UK vocational education has been known for at least a century. We’ve always neglected it. When I was involved in government we had a new skills strategy every two years, and none of them worked.” 

Anyway, executing Brexit will distract ministers and civil servants for years to come. “The government has neither the fiscal room nor the mental bandwidth to do much about skills,” says Portes. In fact, in August the UK removed the NHS bursary for people training to be nurses, midwives and speech therapists, among other professions. Students now have to fund their courses themselves, knowing they can expect a low lifetime salary. 

If Britain doesn’t upskill its workers fast, it will lose skilled jobs. It will continue to have the world’s best universities per capita only if it can find enough Britons to replace departing foreign academics. Much the same applies to finance or design. Meanwhile, low-skilled foreign fruit pickers have already melted away since the pound plunged. With few Britons queuing to replace them, much of this year’s produce rotted in the fields. 

So the most likely post-Brexit outcome is a Britain that cannot keep itself in the style to which it has become accustomed. The war against talent will probably leave the UK looking a bit more like today’s English seaside towns, or most of the country in the 1970s: culturally homogeneous, relatively poor and under-serviced. On the upside, housing should be cheaper. For many Brexiters, I suspect the trade-offs will be worth it.

How Joseph Conrad foresaw the dark heart of Brexit Britain

From financial crises to the threat of terrorism, the works of the Polish-British author display remarkable insight into an era, like ours, of elemental change in a globalised world


Maya Jasanoff in The Guardian


A terrorist bombing in London, a shipping accident in southeast Asia, political unrest in a South American republic and mass violence in central Africa: each of these topics has made headlines in the past few months. But these “news” stories have also been in circulation for more than a century, as plotlines in the novels of Joseph Conrad, one of the greatest and most controversial modern English writers.

Conrad is known to most readers as the author of Heart of Darkness, about a British sea captain’s journey up an unnamed African river. And Heart of Darknessis known to many as the object of a blistering critique by the late Nigerian novelist Chinua Achebe, who condemned Conrad as “a bloody racist” for his degrading portrayal of Africans. It is right to call out the racism – and, for that matter, the orientalism, antisemitism and androcentrism – in Conrad’s work. But his dated prejudices, abhorrent though they are to readers today, coexist in his work with elements of exceptional clairvoyance.

The 100 best novels: No 32 – Heart of Darkness by Joseph Conrad (1899)



Today, more than ever, Conrad demands our attention for his insight into the moral challenges of a globalised world. In an age of Islamist terrorism, it is striking to note that the same author who condemned imperialism in Heart of Darkness(1899) also wrote The Secret Agent (1907), which centres around a conspiracy of foreign terrorists in London. In the wake of the 2008 financial crisis, it is uncanny to read Conrad in Nostromo (1904) portraying multinational capitalism as a maker and breaker of states. As the digital revolution gathers momentum, one finds Conrad writing movingly, in Lord Jim (1900) and many other works set at sea, about the consequences of technological disruption. As debates about immigration unsettle Europe and the US, one can only marvel afresh at how Conrad produced any of these books in English – his third language, which he learned only as an adult.

Conrad was born Józef Teodor Konrad Korzeniowski in 1857 to Polish nationalist parents in the Russian empire. He came of age in the shadow of imperial oppression; his parents were exiled for political activism. Both of them died under the stress, leaving Conrad an orphan at 11. For the rest of his life, he carried the scars of a youth traumatised by punishing authoritarianism, as well as what he considered a fatal, useless idealism.

 John Malkovich and Iman in the 1993 film adaptation of Heart of Darkness. The book has been criticised for its degrading portrayal of Africans. Photograph: Allstar

He travelled to France aged 16 to train as a sailor. For the next 20 years, he worked as a professional mariner, sailing to the Caribbean, Africa, southeast Asia and Australia. From the deck of a ship, he witnessed a transformation in the intensity of global interconnections. Conrad docked alongside oceangoing steamers that transported immigrants from Europe and Asia on a scale never seen before or since. He cruised over the transoceanic telegraph cables that moved news, for the first time in history, faster than people. Between voyages, he made his home in London, the centre of a global financial market that was more integrated during his lifetime than it would be again until the 1980s.

Based in England from 1878, Conrad learned English from scratch, became a proud naturalised British citizen and moved up the ranks of the merchant marine – an all-round immigrant success story. But he also witnessed the rise of xenophobia and nativism. A string of anarchist bombings and assassinations on the continent stoked suspicions of young foreign men – even though what terrorist bombings there were in 1880s Britain were committed by Fenians. Paranoia about anarchism, combined with antisemitism and fears about immigrants stealing British jobs, led to the passing of the 1905 Aliens Act, the first peacetime immigration restriction in British history.

By then, Conrad had left the sea and become a published author and a married father, living in Kent. He channelled his international perspective into a body of writing based overwhelmingly on personal experience and real incidents. A map of Conrad’s fiction looks strikingly different from that of his contemporary Rudyard Kipling, the informal poet laureate of the British empire. Conrad roamed across Asia, Africa, Europe and South America without setting a single novel in a British colony. Although he was a fervent British patriot – he believed that, of all the empires, Britain’s was the best – Conrad was acutely aware of the limits of British power. Nostromo predicts American ascendancy with chilling clarity. In the novel, a San Francisco mining magnate declares: “We shall run the world’s business whether the world likes it or not.”

‘It almost seems as if he wrote his fiction through a zoom lens pointed at the future’... Joseph Conrad. Photograph: Granger/REX/Shutterstock

Across his writing, Conrad grappled with the ethical ramifications of living in a globalised world: the effects of dislocation, the tension and opportunity of multiethnic societies, the disruption wrought by technological change. He understood acutely the way that individuals move within systems larger than themselves, that even the freest will can be constrained by what he would have called fate. Conrad’s moral universe revolved around a critique of the European notion of civilisation, which for Conrad generally spelled selfishness and greed in place of honour and a sense of the greater good. He mocks its bourgeois pieties in The Secret Agent; in Heart of Darkness, he tears off its hypocritical mask. In Lord Jim, he offers a compelling portrait of a flawed person stumbling to chart an honourable course when the world’s moral compass has lost its poles.

Conrad, a lifelong depressive, excelled at the art of the unhappy ending. Yet the essential ethical question of his work – how can one do good in a bad world? – transcends any character or plot. His novels stand as invitations for readers to seek happier answers for themselves.

While the British empire is gone and Kipling’s relevance has receded, Conrad’s realms shimmer beneath the surface of our own. Internet cables run along the sea floor beside the old telegraph wires. Conrad’s characters whisper in the ears of new generations of antiglobalisation protesters and champions of free trade, liberal interventionists and radical terrorists, social justice activists and xenophobic nativists. Ninety per cent of world trade travels by sea, which makes ships and sailors more important to the world economy than ever before.

Conrad brought to all his work the sensibility of a “homo duplex”, as he once called himself – a man of multiple identities. This gives his fiction a particular power for those of us trying to reconcile competing scales of value and beliefs. That Conrad failed to measure up to our moral standards of racial tolerance is a humbling reminder of how our own practices might be judged wanting in future.

It is especially poignant to read Conrad in the context of a post-Brexit Britain. One of Conrad’s most moving short stories, “Amy Foster”, describes the fate of an eastern European man named Yanko, who is shipwrecked on the shores of Kent. In the rural community into which he stumbles, he is rejected as an outlandish stranger by everyone except Amy, a simple farm girl. They fall in love, get married and have a baby boy – but when Yanko cradles his son with an eastern lullaby, his wife snatches the infant away. He falls ill, slips into his native language and dies of a broken heart. “His foreignness had a peculiar and indelible stamp,” wrote Conrad. “At last people became used to see him. But they never became used to him.”

In Lowestoft, where Conrad landed in Britain in 1878, there is a pub opposite the railway station called the Joseph Conrad – which is fitting, since Conrad recalled learning English by poring over newspapers in Lowestoft pubs. He would have been astonished to learn that Poles are now by far the largest foreign-born population in Britain. But Lowestoft voted heavily for Brexit and the Joseph Conrad is part of the pub chain JD Wetherspoon, whose chairman, Tim Martin, was a staunch supporter of leave. One can only wonder what reception a freshly arrived Konrad Korzeniowski would get there today.

The struggle to be British: my life as a second-class citizen

Ismail Einashe in The Guardian

I used my British passport for the first time on a January morning in 2002, to board a Eurostar train to Paris. I was taking a paper on the French Revolution for my history A-level and was on a trip to explore the key sites of the period, including a visit to Louis XIV’s chateau at Versailles. When I arrived at Gare du Nord I felt a tingle of nerves cascade through my body: I had become a naturalised British citizen only the year before. As I got closer to border control my palms became sweaty, clutching my new passport. A voice inside told me the severe-looking French officers would not accept that I really was British and would not allow me to enter France. To my great surprise, they did.

Back then, becoming a British citizen was a dull bureaucratic procedure. When my family arrived as refugees from Somalia’s civil war, a few days after Christmas 1994, we were processed at the airport, and then largely forgotten. A few years after I got my passport all that changed. From 2004, adults who applied for British citizenship were required to attend a ceremony; to take an oath of allegiance to the monarch and make a pledge to the UK.

These ceremonies, organised by local authorities in town halls up and down the country, marked a shift in how the British state viewed citizenship. Before, it was a result of how long you had stayed in Britain – now it was supposed to be earned through active participation in society. In 2002, the government had also introduced a “life in the UK” test for prospective citizens. The tests point to something important: being a citizen on paper is not the same as truly belonging. Official Britain has been happy to celebrate symbols of multiculturalism – the curry house and the Notting Hill carnival – while ignoring the divisions between communities. Nor did the state give much of a helping hand to newcomers: there was little effort made to help families like mine learn English.

But in the last 15 years, citizenship, participation and “shared values” have been given ever more emphasis. They have also been accompanied by a deepening atmosphere of suspicion around people of Muslim background, particularly those who were born overseas or hold dual nationality. This is making people like me, who have struggled to become British, feel like second-class citizens.

When I arrived in Britain aged nine, I spoke no English and knew virtually nothing about this island. My family was moved into a run-down hostel on London’s Camden Road, which housed refugees – Kurds, Bosnians, Kosovans. Spending my first few months in Britain among other new arrivals was an interesting experience. Although, like my family, they were Muslim, their habits were different to ours. The Balkan refugees liked to drink vodka. After some months we had to move, this time to Colindale in north London.

Colindale was home to a large white working-class community, and our arrival was met with hostility. There were no warm welcomes from the locals, just a cold thud. None of my family spoke English, but I had soon mastered a few phrases in my new tongue: “Excuse me”, “How much is this?”, “Can I have …?”, “Thank you”. It was enough to allow us to navigate our way through the maze of shops in Grahame Park, the largest council estate in Barnet. This estate had opened in 1971, conceived as a garden city, but by the mid-1990s it had fallen into decay and isolation. This brick city became our home. As with other refugee communities before us, Britain had been generous in giving Somalis sanctuary, but was too indifferent to help us truly join in. Families like mine were plunged into unfamiliar cities, alienated and unable to make sense of our new homes. For us, there were no guidebooks on how to fit into British society or a map of how to become a citizen.

My family – the only black family on our street – stuck out like a sore thumb. Some neighbours would throw rubbish into our garden, perhaps because they disapproved of our presence. That first winter in Britain was brutal for us. We had never experienced anything like it and my lips cracked. But whenever it snowed I would run out to the street, stand in the cold, chest out and palms ready to meet the sky, and for the first time feel the sensation of snowflakes on my hands. The following summer I spent my days blasting Shaggy’s Boombastic on my cherished cassette player. But I also realised just how different I was from the children around me. Though most of them were polite, others called me names I did not understand. At the playground they would not let me join in their games – instead they would stare at me. I knew then, aged 11, that there was a distance between them and me, which even childhood curiosity could not overcome.

Although it was hard for me to fit in and make new friends, at least my English was improving. This was not the case for the rest of my family, so they held on to each other, afraid of what was outside our four walls. It was mundane growing up in working-class suburbia: we rarely left our street, except for occasional visits to the Indian cash-and-carry in Kingsbury to buy lamb, cumin and basmati rice. Sometimes one of our neighbours would swerve his van close to the pavement edge if it rained and he happened to spot my mother walking past, so he could splash her long dirac and hijab with dirty water. If he succeeded, he would lean out of the window, thumbs up, laughing hysterically. My mother’s response was always the same. She would walk back to the house, grab a towel and dry herself.

At secondary school in Edgware, the children were still mostly white, but there was a sizeable minority of Sikhs and Hindus. My new classmates would laugh at how I pronounced certain English words. I couldn’t say “congratulations” properly, the difficult part being the “gra”. I would perform saying that word, much to the amusement of my classmates. As the end of term approached, my classmates would ask where I was going on holiday. I would tell them, “Nowhere”, adding, “I don’t have a passport”.

When I was in my early teens, we were rehoused and I had to move to the south Camden Community school in Somers Town. There, a dozen languages were spoken and you could count the number of white students in my year on two hands. There was tension in the air and pupils were mostly segregated along ethnic lines – Turks, Bengalis, English, Somalis, Portuguese. Turf wars were not uncommon and fights broke out at the school gates. The British National party targeted the area in the mid-1990s, seeking to exploit the murder of a white teenager by a Bengali gang. At one point a halal butcher was firebombed.

Though I grew up minutes from the centre of Europe’s biggest city, I rarely ventured far beyond my own community. For us, there were no trips to museums, seaside excursions or cinema visits. MTV Base, the chicken shop and McDonald’s marked my teen years. I had little connection to other parts of Britain, beyond the snippets of middle-class life I observed via my white teachers. And I was still living with refugee documents, given “indefinite leave to remain” that could still be revoked at some future point. I realised then that no amount of identification with my new-found culture could make up for the reality that, without naturalisation, I was not considered British.

At 16, I took my GCSEs and got the grades to leave behind one of the worst state schools in London for one of the best: the mixed sixth form at Camden School for Girls. Most of the teens at my new school had previously attended some of Britain’s best private schools – City of London, Westminster, Highgate – and were in the majority white and middle-class.

It was strange to go from a Muslim-majority school to a sixth form where the children of London’s liberal set attended: only a mile apart, but worlds removed. I am not certain my family understood this change. My cousins thought it was weird that I did not attend the local college, but my old teachers insisted I go to the sixth form if I wanted to get into a good university. A few days after starting there, I got my naturalisation certificate, which opened the way for me to apply for my British passport.

Around the time I became a British citizen, the political mood had started to shift. In the summer of 2001, Britain experienced its worst race riots in a generation. These riots, involving white and Asian communities in towns in the north-west of England, were short but violent. They provoked a fraught public conversation on Muslims’ perceived lack of integration, and how we could live together in a multi-ethnic society. This conversation was intensified by the 9/11 attacks in the US. President George W Bush’s declaration of a “war on terror” created a binary between the good and the bad immigrant, and the moderate and the radical Muslim. The London bombings of 7 July 2005 added yet more intensity to the conversation in Britain. 

Politicians from across the spectrum agreed that a shared British identity was important, but they couldn’t agree on what that might be. In 2004, the Conservative leader Michael Howard had referred to “The British dream” when speaking about his Jewish immigrant roots. After 2005, he wrote in the Guardian that the tube attacks had “shattered” complacency about Britain’s record on integration. Britain had to face “the terrible truth of being the first western country to have suffered terrorist attacks perpetrated by ‘home-grown’ suicide bombers – born and educated in Britain”. Many commentators questioned whether being a Muslim and British were consistent identities; indeed whether Islam itself was compatible with liberal democracy.

Howard defined a shared identity through institutions such as democracy, monarchy, the rule of law and a national history. But others argued that making a checklist was a very un-British thing to do. Labour’s Gordon Brown, in a 2004 article for the Guardian, wrote that liberty, tolerance and fair play were the core values of Britishness. While acknowledging such values exist in other cultures and countries, he went on to say that when these values are combined together they make a “distinctive Britishness that has been manifest throughout our history and has shaped it”.

For me, at least, becoming a British citizen was a major milestone. It not only signalled that I felt increasingly British but that I now had the legal right to feel this way.

But my new identity was less secure than I realised. Only a few months after my trip to Paris, the Blair government decided to use a little-known law – the 1914 British Nationality and Status of Aliens Act – to revoke the citizenship of naturalised British persons, largely in terrorism cases. Before 1914, British citizenship, once obtained, could only be given up voluntarily by an individual, but that changed with the advent of the first world war. According to the Oxford politics professor Matthew Gibney, the 1914 act was a response to anti-German sentiment and fears about the loyalty of people with dual British-German citizenship. A further law, passed in 1918, created new and wide-ranging grounds to revoke citizenship.

In theory, since 1918, the home secretary has had the power to remove a naturalised person or dual-nationality-holder’s British citizenship if it was considered “conducive to the public good”, but a 1981 law prevented them from doing so if it made the person stateless. Since 9/11, that restraint has been gradually abandoned.

In 2006, the home secretary was given further powers to revoke British citizenship. At the time, the government sought to allay concerns about misuse of these powers. “The secretary of state cannot make an order on a whim,” the home office minister Angela Eagle had said when the law was first proposed, “and he will be subject to judicial oversight when he makes an order”.

Although the post-9/11 measures were initially presented as temporary, they have become permanent. And the home secretary can strip people of their citizenship without giving a clear reason. No court approval is required, and the person concerned does not need to have committed a crime. The practice is growing. Under Labour, just five people had their citizenship removed, but when Theresa May was at the Home Office, 70 people were stripped of their citizenship, according to the Bureau of Investigative Journalism. Yet these near-arbitrary powers have caused remarkably little concern.

 

‘Before, citizenship was a result of how long you had stayed in Britain, but now it was supposed to be earned through active participation in society.’

People have largely accepted these new powers because they are presented as a way to keep the country safe from terrorism. After 9/11, the public became more aware of the Islamist preachers who had made London their home in the preceding decades. Abu Hamza, who was then the imam of Finsbury Park mosque, and became a notorious figure in the media, was, like me, a naturalised British citizen. For several years as a teenager, I attended the Finsbury Park mosque. It was small; I remember the smell of tea, incense and feet that greeted you every time you walked in. I also remember the eclectic mix of worshippers who visited – Algerians, Afghans, Somalis and Moroccans. Unlike Muslims of south-Asian background, few of these people had longstanding colonial ties to Britain. Most had fled civil war in their home countries, while some of the North Africans had left France because they felt it treated Muslims too harshly. The mosque was not affiliated with the Muslim Association of Britain, and its preachers promoted a Salafi form of Islam.

I remember Abu Hamza as a larger-than-life character, whose presence dominated mosque life, especially at Friday prayers when he would go into very long sermons – usually about the dangers of becoming too British. Attending this mosque was like being cocooned from the realities of modern life. I recall Abu Hamza once going off about how, as young Muslim teens, we were not to follow the “kuffar” in their habit of engaging in premarital sex. For much of my teens, this mosque held a kind of control over me, based on fear. That changed when I moved to my new sixth form and felt able to start exploring the world for myself, and began to realise that I could be secular, liberal and humanist.

I went in one direction, but other people I knew chose different paths. Before 2001, I don’t recall many women wearing the niqab, but as the years wore on it became a more common sight on the streets of London. My sister even began to wear one – contrary to media stereotypes of women being coerced, she chose to, as did many of the young women I had gone to school with. The way that young Muslims practised Islam in Britain changed, in line with global developments. They dropped the varied cultural baggage of their parents’ versions of the religion and began a journey to a distinct British Islam – something that connected the Somali refugee and the second-generation Bangladeshi, the Irish and Jamaican converts.

Some of the white working-class kids I grew up with converted to Islam. Daniel became Yusef and Emma became Khadija. Before I knew it, they were giving me advice about how Muslims should behave. I observed this role reversal with amusement. One boy in particular would preach to me while incessantly saying “bruv”. I also saw the young men I had grown up with move away from a life sat on bikes wearing hoods under bridges in Camden listening to grime, to practising their Islam more visibly. Out went the sneaky pints, spliffs and casual sex. Now it was beards, sermons about the faith and handing out Islamic leaflets on street corners. But I did not heed their words. When I was 16 I stopped attending the mosque and I began to question my faith.

Mahdi Hashi was one of the young men I grew up with. Hashi was another child refugee from Somalia. As a teenager he used to complain that he was being followed by the British security services. He said they wanted to make him an informant. Hashi was not alone. In 2009, he and other young Muslim men from Camden took their allegations to the press. One said that a man posing as a postal worker turned up at his door and told him that if he did not cooperate with the security services, then his safety could not be guaranteed if he ever left Britain.

For most newcomers, citizenship is not just confirmation of an identity, it is also about protection: that you will be guaranteed rights and treated according to the law. Hashi lost that protection. In 2009, he left for Somalia because, his family say, of harassment by the security services. In June 2012, his family received a letter informing them that he was to lose his British citizenship. Later that summer Hashi turned up in Djibouti, a tiny former French colony on the Red Sea. He was arrested. He alleges that he was threatened with physical abuse and rape if he did not cooperate with authorities in Djibouti – and he alleges that US officials questioned him. In November 2012, he was given over to the Americans and taken to the US without any formal extradition proceedings. In 2016, Hashi was sentenced in New York to nine years in prison for allegedly supporting the jihadist group al-Shabaab. He will be deported to Somalia upon his release.

Hashi’s case is not unique. Bilal Berjawi, who came to Britain from Lebanon as a child, had his British citizenship revoked in 2012 and was killed in a US drone strike on the outskirts of Mogadishu. His friend Mohamed Sakr, who held dual British-Egyptian nationality, was also killed by a drone strike in Somalia after he had been stripped of his UK citizenship. Together with a third friend, the two young men had visited Tanzania in 2009 on what they claimed was a safari trip, but were arrested, accused of trying to reach Somalia and returned to the UK. The third friend was Mohammed Emwazi, now better known as the Isis executioner “Jihadi John”.

The war in Syria, and the attraction that Isis and other jihadist groups hold for a small minority of British Muslims, has led to a further increase in citizenship-stripping. In 2013 Theresa May, who was then home secretary, removed the citizenship of 13 people who had left for Syria. The government has a duty to protect people, but the tool it is using will have wider, damaging consequences.

The right of newcomers to be considered fully British has been a long struggle. The first border controls of the 20th century were introduced to stop the movement of “alien” Jewish refugees from eastern Europe. In 1948, the British Nationality Act gave citizenship to anyone who had been a subject of empire, but those black and Asian migrants who took up the offer – indeed, who often thought of themselves as British – were met with shocking racism: with “no Irish, no blacks, no dogs”. The 1962 Immigration Act began to limit the citizenship rights of people from the non-white colonies, and by the 1982 Act it was all over.

Now we are caught in a paradox, where the state is demanding more effort than ever on the part of the migrant to integrate, but your citizenship is never fully guaranteed. Fifteen years on from the events of 9/11, gaining British citizenship is a much tougher process. And becoming a naturalised citizen is no longer a guarantee against the political whims of the day: you are, in effect, a second-class citizen. Citizenship-stripping is now a fixture of the state, and it is defended in the usual vein, which is to say: “If you have not done anything wrong, you have nothing to fear.” The usual caveat is that this concerns terrorists and criminals – a red herring that masks the true purpose of such laws, which is to empower the state at the expense of ordinary people. The philosopher Hannah Arendt memorably described citizenship as “the right to have rights”, but for people of migrant background such as myself, this is being eroded. We are not a small group: according to the 2011 census, there are 3.4 million naturalised Brits.

As I was writing this piece, Donald Trump issued his executive order that bans people from seven majority-Muslim countries, including Somalia, from entering the US – even if they hold dual nationality. I happened to be visiting New York at the time, and the ban has left me wondering if I will ever be allowed to again. Despite assurances from Britain’s government, it remains unclear whether the ban applies to people who hold a British passport, but were born overseas. Trump’s ban did not happen in a vacuum: there is a thread linking the anti-terror policies of western governments and this extreme new step.

Today, I no longer feel so safe in my status as a naturalised British citizen, and it is not just the UK. In other liberal democracies such as Australia and Canada, moves are under way to enable citizenship-stripping – sending people like me a clear message that our citizenship is permanently up for review.