A tale of two countries (in decline)

It may sound melodramatic to claim that Britain is a country sliding steadily toward the ranks of developed nations. Yet that, in effect, is the clear headed assessment of UK political economist and leading commentator, Will Hutton. And it is a worrying assessment shared by many in the British labour movement as workers in the health and transport sectors embarked in August on another set of strikes.

In a newspaper commentary, Hutton noted that “large parts of Britain are today scarcely better off than middle-income developing countries”. And the major sufferers, as in all such crises, are workers, especially the low paid.

I read that assessment in mid August as I flew into London from the mother city of our still generally classified “upper level middle income developing country”. And it immediately brought to mind the assessment made last year by South African political economist Moeletsi Mbeki. He was commenting on the situation in South Africa.

The two commentaries raise numerous — and often worrying — parallels as both countries head toward crucial elections next year. These parallels lie in the relative declines, especially over the past 30 years, of the economic and social status and prospects of Britain and South Africa that have a long, sometimes fractious and often brutal shared history.

It is, of course, a matter of scale between a once global industrial powerhouse enriched by the pillage and plunder of empire and a resource rich former imperial vassal. But, even 30 years ago, Britain was still seen as a global economic giant although the decline in the country’s manufacturing and industrial base was already underway.

But it continued to be widely, and often still is, seen as a model, especially in terms of health care and social welfare. The National Health Service (NHS) and a social welfare net were claimed to ensure a minimum acceptable standard of living for all, this being defined as ensuring adequate food and nutrition, clothing, housing and the necessary conditions of care when required.

Yet, as the UK Child Poverty Action Group points out, there are now at least 4.2 million children living in poverty today in Britain. A survey published earlier this year by the Resolution Foundation, an independent think tank, also found that 6 million adults reported being hungry in the month surveyed because “they lacked enough money to buy food”.

Here are distinct echoes of the situation often enough reported on in South Africa: it is only the scale of the problem that is different. But then we, in Mzansi, started from a very much lower base.

Yet, even 20 years ago, South Africa was the largest economy in Africa with a relatively thriving and diversified manufacturing base. This has not only withered, the country now teeters on the edge of the failed state abyss with the economy having fallen into third place behind Nigeria and Egypt. The state of the ports and the rail network — once one of the largest anywhere — and the post office does not bear mentioning.

In the crucial sector of health, the governments of both countries continue to insist that improvements are underway. In South Africa that the national health project is on on course; in Britain that the chronic shortage staff and inadequate investment is being remedied. But the situations remain dire.

Hutton, with justification, claims that Britain should no longer be thought of as as a rich country. He noted: “We are poor and living on the edge.” It is a good example of how relative is poverty when seen against the reality in South Africa.

But, as the labour movements in both countries have pointed out over the years, a prime reason for the decay — in some cases, collapse — of such essential services as transport and health lies with a system that prioritises greed over good, private wealth over public benefit. Efficiency, transparency and accountability are the keys to success and can apply whether under public or private control.

The difference being that under public ownership all in society benefit equally, while private control always comes at a cost to the majority. And the drive to increase profits in private hands leads, as Mick Lynch, general secretary of the Rail Maritime and Transport (RMT) union, says, to cuts in jobs and services and to reductions in safety standards.

He and other unionists also point out that the stress on privatisation has led to increasing levels of precarious work and wage stagnation, another parallel with South Africa. As the independent High Pay Centre in Britain has noted: inflation has outstripped the pay rises of most workers over the past year while executive pay among major companies soared by 16%.

These are issues that should feature prominently as both countries go the polls next year. But, so far, there seems little sign of any way out of the ongoing morass.