Further to the article on the UK riots of two weeks ago (see Categories/Chairmans Blog/Social Mobility/UK Riots 2011 in the right-hand index column), analysis shows that the vast majority of those appearing in court were young, poor and male. Of the first 1000 cases, 90% of those charged were men, with less than 10% either studying or in employment and two-thirds aged under 25. The neighbourhoods they come from are depressed, two-thirds of these areas having got poorer between 2007 and 2010. In addition and according to the police, 60% of those charged in London already had previous convictions and 25% were known to be linked to gangs.
These rioters in the main belong within a group of people without skills, education or hope for the future. They seem detached from what we consider the social norm i.e. they remain outside normal society, are angry and alienated and, therefore, are perceived as a threat. They inhabit a social and emotional vacuum, are often the children of single or absent parents with no supporting family structure or adults they value and respect, to lay down the generally accepted rules of civilised society such as respect for the rule of law and the rights of their fellow citizens.
As Prince Charles suggested when meeting those impacted by the Tottenham riots, rather than just the results of pure criminal behaviour, was not gang membership for example also the logical extension of a basic human need for a social framework, to belong, to find identity, pride, camaraderie and purpose, as well as offering an albeit criminal means of taking a share of the goods available within our consumer society.
Writing today in a letter to the Times newspaper, Sir Michael Howard recalls his experience of joining gangs in his younger days, starting out at his first boarding school at the age of 9 and later joining more prestigious ones at his house at school, college at university and his regiment when joining the army. Although this example is taken from a vastly different level in society, it serves to illustrate the basic human need for a social framework. Sir Michael does not see why young people today should be denied the chance of acquiring such social skills because they cannot afford to learn them as expensively as he did.
Prince Charles also comes from an even more privileged and protected background but his instincts ring true. His charities and trusts have achieved a lot on youth unemployment and exclusion and he should, therefore, be listened to when the government reviews whether its current social and community policies are sufficient to avoid a recurrence of the recent riots. In the UK, there is a growing divide between rich and poor, not least in the respective perception of each side by the other. This perception gap needs to be bridged in developing through sharing these important middle-class-type, social skills key to finding e.g. good training and good jobs for their children.
Archive for août, 2011
German Economic Success?
jeudi, août 4th, 2011The German economy has seemingly made a remarkable recovery since the onset of the financial crisis with GDP growth of 3.6 % in 2010, the same level expected in 2011 and unemployment now below 3 million, giving the best results for 20 years. A major factor has been the labour market proving more flexible than expected, enabling costs and productivity to be held at more competitive levels than e.g. the weaker members of the Euro-zone such as Greece, Portugal and Ireland which are now requiring financial bailouts. In reality, the German economy is now back to where it was in 2009 and the current growth rate is not considered typical, underlying growth being around 1.2 % according to Stefan Kooths of the Kiel Institute.
However, despite this growth in business and manufacturing adding an unexpected Euro 135 billion in extra revenues, the financial crisis has still left the German federal government finances weaker than before. There are structural threats to the economy from local public authority indebtedness, a costly social security system and a health system with a Euro 11 billion deficit. Half the total income of Berlin comes from federal sources and e.g. Frankfurt as a major financial centre with a population of 600,000 raises three times as much in local taxes as Berlin, which has a population of 3.5 million and a debt mountain of over Euro 60 billion. In common with the north of the UK, the former industrial heartland of the Ruhr region is still trying to replace jobs in iron and steel with new businesses in high technology and services such as the media, as the financial health of many cities in the region has steadily declined. The city of Bremen in the north of Germany has a debt of Euro 20 billion on a budget of Euro 4.5 billion and Saxony-Anhalt has the highest debt of any German state outside Berlin, with around Euro 20 billion of debt equivalent to 40 % of income.
Therefore, as is the case with the Coalition government in the UK, the German federal government is faced with having to reduce its debts (currently 83 % of GDP) by what some might well consider, however, a less than ambitious although substantial Euro 80 billion, considering the large tax gains from growth in the previous year (and indeed what the government in the UK is still struggling to replicate from growth in the British economy). It is aiming to achieve this mainly through cuts to the social service budget and family benefits, together with redundancies amongst civil servants and tax increases. Local authorities are also being forced to find new sources of income from taxes and cutting costs by withdrawing support for e.g. libraries, sports programmes, parks, playgrounds and swimming pools.