Investing in our soft power assets – the GREAT campaign & the Spending Review

This is the fourth in a series of blogs on the upcoming Spending Review, and how Britain maximises its influence and soft power across the world at a time of declining budgets. This focuses on the GREAT Britain campaign, which has been a focal point for the UK’s prosperity agenda. Find the others with the following links: FCO, British Council, BBC World Service.


Another ambitious initiative has established itself as one of the UK’s more innovative soft power tools – the GREAT Britain campaign. Active in 144 countries, the £113.5 million campaign (2012 – 2015), is the government’s major branding campaign to promote the UK as a destination for tourists, trade anSan Fran harbourd investment, and students, in order to secure economic growth. As Director, Conrad Bird highlights, the award-winning campaign has focussed unashamedly in driving the prosperity / economic growth agenda with clear objectives aiming to stimulate foreign direct investment, tourism and strengthen the UK’s economy – “…it is about jobs and growth for Britain; it is designed to make money for Britain”. Conceived and coordinated from the Prime Minister’s Office in Downing Street (but working with UKTI, the FCO, British Council, VisitBritain and VisitEngland), the campaign was recently commended by the National Audit Office, reporting a return on investment (so far) of £1.2 billion.


The campaign has not been without resource challenges, as James Pamment from the USC Center on Public Diplomacy explains, “Despite the potentially demotivating effects of cutbacks and the marketing freeze, GREAT has provided a focal point for the prosperity agenda. Backed by hard cash, positivity dividends from the Jubilee and Olympics, support at the highest political levels, and metrics which demonstrate value in a manner easy to understand, GREAT has opened the door to opportunities for organisations and staff at a time when resources have been stretched.”


With over 400 businesses and hbond-is-greatigh-profile individuals backing the brand with joint funding and sponsorship (contributing over £69m in cash and in kind support), the campaign is in an increasingly strong position to seek further support from the private sector given the increasing value of the 11-21snowdonia-2-RGBGREAT brand itself, and track record in delivering results for business. With further campaign plans for the next 12 – 18 months (e.g. using the Bond movie to promote the UK, Exporting is GREAT campaign targeted at SMEs, tourism campaigns on Culture & Countryside, activity marking Shakespeare’s 400th anniversary, supporting Liverpool’s 2016 International Festival of Business), it is clear that the campaign is seeking to build on the momentum generated and will no doubt will be hoping for adequate resourcing for its ambitious plans. The 2015 Conservative manifesto hints at future support – “We will boost our support for first-time exporters and back the GREAT campaign, so we can achieve our goal of having 100,000 more UK companies exporting in 2020.

A bold Beeb – ambitious plans for the BBC World Service

The BBC World Service is often seen as one of the UK’s great soft power assets. Former UN Secretary-General Kofi Annan agrees, describing the world’s largest international broadcaster as “perhaps Britain’s greatest gift to the world”.

BBC satellite dishes

Tomorrow will see Tony Hall, BBC Director-General, set out the first of a series of responses to the government’s green paper on the future of the broadcaster – a “passionate defence of the important role the BBC plays at home and abroad”. The green paper opened up plenty of issues for discussion (aims, funding, license fee, digital approach etc.), but tomorrow’s response is expected to focus on some rather bold expansion proposals for the World Service. Bold because the BBC has already been asked to make cuts and shoulder the £750m burden of paying free licence fees for the over-75s. And also bold because they are explicit in seeking to counter the challenge of state-sponsored rivals, such as Qatar’s Al-Jazeera, Russia’s RT and China’s CCTV.

“This is about Britain’s place in the world…   …It is above the politics of the debates about the BBC’s future. It has to be a national priority. Other news outlets are growing globally and many do not share our traditions and values. We have a strong commitment to uphold global democracy through accurate, impartial and independent news.”

A cursory glance at the expansion plans give a good indication of priorities / challenges:

  • satellite TV service or YouTube channel for Russian speakers
  • daily news programme for North Korea
  • expansion of the BBC Arabic Service (with increased MENA coverage)
  • increased digital and mobile offerings in India and Nigeria

But how real are these challenges? Very, actually, especially if you, like 68% of opinion formers, consider the  World Service to be one of the UK’s most important foreign policy assets, or are concerned about the strategic decline of the UK’s soft power.

Firstly, the World Service faces a legacy of underinvestment. With a budget less than half that of BBC2, FCO funding was cut by 16% in 2010, leading to the departure of about a fifth of its staff. This has had an impact – in 2005 the organisation provided services in 43 languages, now down to 28. Some services have been ceased, and at one stage, audiences of 10 million in India were under threat for the sake of £900,000.


Secondly, and more importantly, the organisation faces increased competition with the news / information arena seeing increased investment by state-sponsored broadcasters – a “soft power battle”. The BBC sounded the alarm bell in January with its Future of News report highlighting the disparity in investment seen elsewhere – “China, Russia and Qatar are investing in their international channels in ways that we cannot match, but none has our values and our ability to investigate any story no matter how difficult.” Compared to the World Service’s £245m budget (2014), both competitor investment and aspiration levels are high. China’s CCTC received nearly $7bn to expand global operations and both RT (previously named Russia Today, the Kremlin-backed news service, $300m budget), and Qatar’s Al Jazeera ($100m budget) recently launched channels targeting UK / English-language audiences. Before being named UK Culture Secretary, John Whittingdale said it was “frightening” that the World Service was being “outgunned massively by the Russians and the Chinese”. 1

The report also warned of ‘dangerous and disparate’ threats to independent and reliable world news from other well-funded state broadcasters, arguing that cuts would reduce the UK’s influence, “The World Service faces a choice between decline and growth…   …If the UK wants the BBC to remain valued and respected, an ambassador of Britain’s values and an agent of soft power in the world, then the BBC is going to have to commit to growing the World Service and the government will have to recognise this.”

With ministerial discussions on the Autumn spending review already well underway, we can expect further lobbying and positioning in advance of the November announcement on departmental settlements. More on this in my forthcoming Chatham House article on how Britain maximises its influence across the world at a time of declining resources.

Why can’t politicians ‘cut through’ on climate?

In the Guardian, Hugh Muir complains that the Daily Mail has “helped erode trust in the probity of the political establishment to the extent that politicians cannot now receive a fair hearing on anything.”

We don’t listen much to any of them these days, and sometimes that doesn’t matter, because we live quite happily day to day without ministerial interference. But when it comes to issues that affect the state and mood of the nation; the inability of even serious politicians to cut through becomes troubling.

This is spot on for climate change, as can be seen by a look at how Hugh’s own paper covered three stories in the run up to the Warsaw summit.

First, fossil fuel subsidies, where the Guardian gobbles up a global report from the Overseas Development Institute and presents it through a primarily national lens.

Fossil fuel subsidies

As I have explained, the Guardian’s framing is largely fallacious, but to pick up Hugh’s point, the government’s position is not reflected at all. No quotes. Nothing.

Only a tiny minority of readers would suspect that ministers deny Britain has any inefficient fossil fuel subsidies at all (or understand why). Nor would they realise that eliminating the ‘subsidy’ identified by ODI equates to quadrupling VAT on all domestic energy, whether it comes from fossil fuels or renewables. Continue reading

Organizing for Influence: our new Chatham House report

Today sees the publication of Organizing for Influence: UK Foreign Policy in An Age of Uncertainty (pdf), a new report authored by David and me, published by the Royal Institute of International Affairs. This is one of the first two publications from Chatham House’s project on rethinking Britain’s overall foreign policy role; the other, also out today, is a scene-setter by Chatham House’s director Robin Niblett. (Still to come are in-depth papers on Britain and… the global economy; the US and Europe; the rising powers; energy and climate; the developing world; and security and defence.)

In our report, we observe that while foreign policy and global issues barely got a mention during the general election campaign, it’s a racing certainty that the new coalition won’t have the luxury of ignoring them in government. As we’ve argued before, globalization is in the midst of what we term a ‘long crisis’. As an open economy and society, Britain is especially exposed. The government’s international workload is about to increase, perhaps dramatically. And given the need to reduce the deficit, it’s going to find itself stretched to the limit.

All this means, we think, that the government needs to work to upgrade and reform all aspects of its international programme. For one thing, that means making clear strategic choices – specifically, we think, seeing Britain’s international agenda through three overlapping lenses:

– First, national security. For us, this is about the direct threats to Britain, within a relatively short timescale – 5-10 years or so. It should not be about the longer-term or non-security risks like climate, scarcity or global economic risks. While we very much welcome the coalition’s creation of a National Security Council and appointment of the UK’s first National Security Adviser, we argue that if it tries to cover the whole of foreign policy, then we’ll be back to a storyline we know all too well: the urgent crowds out the essential, and preventive action gives way to fire-fighting.

– Second, global risks and the global system. We have to look at these issues separately from national security, we argue. For one thing, the amount of risk that’s tolerable in each is totally different. Any failure on the national security front can be disastrous. On global system issues, on the other hand, you have to take risks if you want to get anywhere – to be a venture capitalist, not a bank manager.

– Finally, fragile states. National security is fine as a lens when you’re looking at countries where the UK actually has troops deployed, like Afghanistan. But it’s the wrong lens for looking at places like Nigeria – where the challenge has much more to do with taking a long-term, political economy based approach to questions of governance, resilience and ‘development diplomacy’.

What does all this mean in practice?

A dramatic overhaul of the Foreign Office’s London HQ, for one thing – turning it into something that looks a lot more like the Cabinet Office (with at least half of senior policy posts filled from other government departments, and a lot more recruitment from outside government too), so that it can finally be the department for global issues that it should have become years ago.

A much tighter focus on fragile states at DFID, too – which we argue should close down its offices in ‘good-performing’ countries like Tanzania in favour of putting its aid through partnerships with other donors, or the multilateral system, and focusing its staff much more heavily on the really difficult cases. It’s staff, not cash, that’s DFID’s scarcest resource, so that’s what it needs to prioritise. (Did you know that DFID has only 2,586 people – to the Foreign Office’s 14,549?)

Plus a bunch more recommendations besides – including more ambassadors for issues (like we already have on climate and arms control), a tighter focus on the alliances and networks that could really magnify UK influence (especially the EU, G20 and NATO), a much bigger role for Parliament in foreign policy, and – perhaps the farthest reaching change of all – allocating budgets to strategies rather than departments, on the basis of first-principles reviews of UK objectives, capabilities and performance on the 3 areas of national security, global systems and fragile states.

Read the whole thing – all comments, as ever, very welcome. We’re also doing an event on the report at Chatham House on 9 June, and will be running the concluding session of the Institute’s two day conference on Britain’s future foreign policy role on 13 and 14 July.

The Long Financial Crisis (updated)

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It’s commonplace to describe the financial crisis as a once-in-a-century event, but I question whether that is the case. Perhaps we’re not in the midst of a short-lived financial shock, but a long crisis that stretches back into the 1990s.

Here’s Paul Blustein on Alan Greenspan:

The Fed chief told the G-7 that in almost fifty years of watching the U.S. economy, he had never witnessed anything like the drying up of markets in the previous days and weeks.

Greenspan wasn’t speaking in Autumn 2008 when Lehman’s collapsed, however, but ten years’ earlier in the wake of the spectacular blow-up of Long-Term Capital Management, which lost $4.5 billion almost overnight in what the fund’s principals post-rationalised as a 100-year flood.

Long-Term (with its superbly hubristic name) was brought low by derivatives, just as Lehman’s would be a decade later.

(Robert Rubin, Clinton’s Treasury Secretary, was one of those left picking up the pieces – part of ‘the committee to save the world’, with Greenspan and Larry Summers. Rubin went on to preside over Citigroup as it needed a succession of massively expensive bailouts, when its derivatives tanked in the subprime crisis.)

Committee to Save the World

The proximate cause of Long-Term’s failure was Russia’s Rouble crisis, when the country defaulted on its debt after the IMF refused to mount a second bailout.

The Russian crisis itself came in the midst of a long series of dramatic economic failures that hits the world between 1997 and 1999, mostly in East Asia (Thailand, South Korea, Indonesia etc), but which also battered Brazil and would devastate Argentina in 2002. Blustein again:

Time and again, panics in financial markets proved impervious to the ministrations of the people responsible for global economic policymaking.

IMF bailouts fell flat in one crisis-stricken country after another, with the announcements of enormous international loan packages followed by crashes in currencies and sever economic setbacks that the rescues were supposed to avert.

Continue reading