Commonwealth: Democracy and Development

My Lords, we come to the concluding part of this important debate. I thank the noble Lord, Lord Sheikh, who has been instrumental in shaping the agenda on the basis of which most noble Lords have contributed today. It is a delight to follow the noble Lord, Lord Luce. I recall that he called a similar debate in July 2007. Much of the trend that was established at that stage was followed in the contributions of many noble Lords today. As most noble Lords have said, this debate comes at an appropriate time—soon after the Commonwealth Heads of Government conference in Trinidad and Tobago, and the 60th anniversary of the organisation coming into being. The Commonwealth is a unique organisation of diverse nations, playing an important role in global politics. It is able to address issues that pose global challenges such as the impact of climate change, which the noble Lord, Lord Sheikh, mentioned in his contribution. The issues that affect such places as Bangladesh, the Maldives, the Caribbean and the Pacific islands are now being discussed in Copenhagen. This debate also gives us an opportunity to pay tribute to Her Majesty the Queen, the Head of the Commonwealth. Her contribution has been unique and it is her dedication that has kept the Commonwealth together over all these years. I thank the noble Baroness, Lady Gardner of Parkes, for mentioning this contribution. On that point, I understand that there will be some clarification on the right of abode, which was raised. I point out to the Minister that there has been so much immigration and nationality legislation—particularly in the past 10 or 12 years—that it is about time that there was some consolidation of it. That would not have created the type of complex situation that the noble Baroness, Lady Gardner of Parkes, has mentioned. The noble Lord, Lord Howell, has raised a fundamental issue: are there any constitutional implications for the membership of some Members of the House of Lords? If so, I very much hope that there will be a Statement to the House at some stage on that particular matter. It is interesting that the transition from the days of the British Raj, or Empire, to the Commonwealth has been so remarkable. No longer are there shades of the master-servant relationship. Rather, it is one of respect among nations of equals. The free movement of people in the early years of the Commonwealth has enriched the cultures of all our member nations. I am delighted that this point was ably stressed by the noble Baroness, Lady Verma, particularly the contributions of many of the diverse communities that have settled in this country from Commonwealth countries. The common thread that unites us all is our beliefs, which are shaped by our multiracial, multicultural and multireligious society. However, there remain some doubts about our common commitment to the Commonwealth of nations. The emergence of the European Economic Community, followed by the European Union, and now its extension to include new and emerging nations from the Eastern bloc, gives an impression of a downgrading of our ties with the Commonwealth. There remains a suspicion that we maintain a relationship that is no more than is absolutely necessary. I trust that the Minister will assure us that this is not so and that we will ensure that the European Union does not become a rich men’s club at the expense of our ties with the Commonwealth countries. I will concentrate on two matters. The first concerns Commonwealth ties, which are so important. The Government could still do more to promote these ties. It has been brought to my attention that the recategorisation of the immigration points-based system now means that volunteers—I talk about volunteers only—who come to the United Kingdom for perhaps two weeks’ voluntary work are now classed in the same category as people seeking long-term paid employment in the United Kingdom. This is clearly not right, and means that there are extra costs for visas, which puts off many people, including those from Commonwealth countries, from coming to the United Kingdom. It seems absurd to hinder these people who want to do voluntary work in Britain and thus help strengthen and further the relationship and ties between Britain and other countries. We cannot put a price on this soft diplomacy. The Government should do as much as possible to help them. I urge the Minister to consider revising the points-based system, as I have already urged the Commons Minister, Phil Woolas, to do. As I said, I want to concentrate on two matters. My second point, concerning poverty, was raised by the noble Baroness, Lady O’Cathain. Because poverty is endemic in many Commonwealth countries, we need to ask whether trade liberalisation can benefit the Commonwealth in the current economic climate. Trade liberalisation entails the removal of, or reduction in, the trade practices that limit the free flow of goods and services from one nation to another. That point was ably raised by the noble Lords, Lord Bilimoria, Lord Goodlad and Lord Harrison. Trade barriers are a form of protectionism and are carried out through a variety of means: tariffs, which raise the price of goods coming into a country; quotas, a physical limit on the number of goods that can be brought into a country; and other non-tariff barriers such as regulations and legislation which make it very hard for foreign competitors to sell their goods in other countries. I emphasise that free trade or trade liberalisation do not mean unregulated trade where vulnerable communities are exploited by powerful multinational corporations. Free trade does not disregard the need to ensure gender equality, prevent child labour and ensure that supply chains function with optimum benefits for those along the entire supply chain, especially at the bottom. Trade liberalisation is about opening up markets to foreign competition; using fairness as a principle of transborder trade; and not holding developing world economies to ransom. The aim of trade liberalisation is to create a level playing field on which economies at different levels of development are able to compete. Trade barriers were established historically as a means of protecting states' trade interests. They were an attempt to protect domestic industries from competition from foreign producers and service providers. The basis for this has always been political. Under a free trade policy, prices would be a reflection of true supply and demand, and are the sole determinant of resource allocation. Free trade differs from other forms of trade policy where the allocation of goods and services among trading countries is determined by artificial prices that do not reflect the true nature of supply and demand. These artificial prices are the result of protectionist trade policies, whereby Governments intervene in the market through price adjustments and supply restrictions. Such government interventions generally increase the cost of goods and services to both consumers and producers. An attempt to solve a problem in one sector by interfering in the market creates problems elsewhere. The problem is markedly increased in the developing world. In many parts of Africa, the protectionist approach of western Governments has crippled economies and perpetuated poverty. Trade tariffs, western farming subsidies and commodity dumping have made it increasingly difficult for African states to generate healthy and stable economies. Many countries are not able to sell their produce even to their neighbours, who can import products more cheaply from Europe and the United States. Women are more vulnerable to poverty than men and access to global markets is essential if women are to be empowered to work their way out of poverty. The Commonwealth is giving special attention to the different needs, constraints and interests of women in trade policy and trade liberalisation. Trade liberalisation is not without its difficulties, but it must not be confused with free trade and the complete absence of regulation. If one pays decent wages to workers throughout the Commonwealth, even marginally more money can be used by impoverished communities to enhance their own and their children's education. This will also increase people's own buying power and an entire market for goods and services will suddenly open up. Impoverished communities should not be seen as pools of cheap labour and threats to domestic labour; rather they are untouched markets, potential consumers and, ultimately, valuable participants in the growth of the world economy. This is the true meaning of trade liberalisation, and this is what development is all about.