Listen to what the people say

Sir Stafford Cripps, Chancellor of the Exchequer in the Labour government in post-war Britain, used to symbolise, through his grave personality and tough fiscal policies, the essence of “austerity” as defined in economics.

...no ‘super Mario’ or ‘brilliant Lucas’ will survive if they do not also have the support of the people- Louis Cilia

He became known as “Misery Cripps”. In 1948, Lord Woolton commented thus on him: “He is a bit of a saint but we are not apostles of austerity. If Britain is going to prosper, the people must have food, more clothes, more to spend their money on.”

Winston Churchill mocked the chancellor’s ascetic comportment and attitude by remarking to colleagues as he passed by: “There, but for the grace of God, goes god.”

Today, as Europe confronts its massive debt problems, austerity has again gained popularity. In 2009, David Cameron defined these times as the “age of austerity”. As Prime Minister, he is keen to implement such policies. In the eurozone, politicians fearing contagion are also resorting to extreme measures. These efforts, although well meaning, could, however, produce undesired results by threatening the very social fabric of society.

In Spain, last May 15, a series of demonstrations started with an initial call in 58 cities that then spread across the country. Protestors are demanding radical change in Spanish politics as they do not consider themselves to be properly represented by any traditional party nor do they favour the austerity measures being imposed on them by politicians. (The article was written prior to last weekend’s election in Spain.)

The fall of Prime Minister Georges Papandreou in Greece and his replacement by Lucas Papademos, a former vice-president of the European Central Bank, was as a result of popular anger in the streets.

Prime Minister Silvio Berlusconi of Italy, who, for long, contemptuously disregarded popular discontent, was also forced to resign on November 12, to be replaced by Mario Monti, a former European Competition Commissioner. The new prime ministers in Greece and Italy will, for a short period, head unity governments in the hope of being able to implement very tough measures to heal their countries’ deep wounds.

In the meantime, as these scenarios rapidly evolve, anger in the streets continues in many parts of Europe. In London, demonstrators who have taken up residence in encampments outside St Paul’s Cathedral are protesting against corporate greed. Ironically, the protests in London coincided with reliable reports that the Royal Bank of Scotland – hugely bailed out through taxpayers’ money in the 2008 banking crisis – was planning to set aside millions of pounds as bonuses for bankers who are considered by many as the source of the nation’s malaise.

It is ironic that the current crisis is, in a way, leading to undemocratic solutions. Both Mr Papandreou and Mr Berlusconi were elected to their respective former positions as leaders of the nations through the popular vote by comfortable majorities. Anger and denunciation in the capitals was not enough to bring them down, nor did frequent parliamentary confidence votes. What ultimately forced them to resign was a global debt market that pushed the cost of borrowing beyond affordable means as also unelected bond traders who controlled the markets.

Every action taken by the political elite was subject to what the markets decided. No politician could rest assured over the weekend as s/he tensely waited for what the markets decided at openings on Mondays.

The persistent question now is: Will the people of Europe accept the decisions of these unelected leaders that are suddenly sprouting in Europe? Without doubt, the measures that need to be taken will have to be tough and unrelenting for a long time. However, no “super Mario” or “brilliant Lucas” will survive if they do not also have the support of the people.

Moreover, one ought, in these circumstances, to also ask: Are a few months that have been allotted to these new technocrat leaders to administer the bitter medicine to their compatriots enough time for them to turn round in a definitive positive manner the present dire situations of their countries’ economies? Those who think so are living in a world of fantasy.

Perhaps we will all have to listen, in the end, to what in their simplicity the people are saying. High-flown words and complicated formulas need to be replaced by direct action intended to address the substance of the problems. The lessons for Europe’s elites lie with the people. Look for them in the streets, at the encampments in London and New York, on the cobblestones in public squares in capital cities and, more importantly, at what is being said in small groups at homes or other places where people gather to relax and talk candidly.

The real solutions are simple. Eradicate greed with energy and effectiveness. Undertake to confront head on unscrupulous politicians and administrators in government departments and other elite institutions. Bury for ever spin. Be candid and honest with the people and, above all, always aspire to proper public ethics.

In reality, however, whoever needs to implement these solutions would require great personal courage and guts. These are, unfortunately, the kind of leaders that the world nowadays seriously lacks.