Mr. Collier critiques the UK Labour government’s inadequate response to xenophobic riots, attributing them to neglect in impoverished areas rather than solely racism. He reflects on Sheffield’s decline from industrial prosperity and contrasts its struggles with Pittsburgh’s successful recovery. Collier argues for increased regional investment and decentralization but expresses skepticism about Labour’s potential for meaningful reform. He believes longstanding issues and a misaligned political approach hinder progress in addressing inequalities between northern and southern England.
During the summer, Paul Collier expressed criticism of the British Labour government’s handling of xenophobic riots. His perspective is that these incidents were a desperate signal from impoverished regions in the UK, where areas like Rotherham, Blackpool, Grimsby, and Hartlepool are grappling with severe poverty. Collier believes the response from the new Prime Minister was inadequate, pointing to Keir Starmer’s previous role as head of the Crown Prosecution Service as a reason for his tough stance on sentencing. He emphasizes that many young men from these underprivileged areas feel hopeless about their futures, suggesting that Starmer should have empathized with their struggles.
When it comes to rising migration levels, the government aims to reduce them, but Collier insists it’s inappropriate to label the summer protests solely as acts of racism. The unrest was sparked by false claims that an asylum seeker had attacked girls in a dance class, but the deeper issue was a sentiment of neglect from the government. Locals felt that even irregular migrants were receiving better treatment, particularly when asylum seekers were accommodated in budget hotels in economically struggling neighborhoods. Collier argues that the real problem isn’t migration, but rather a long-standing policy failure, especially the lack of a strong vocational training system for young people who either cannot or choose not to pursue a university education, which is starkly different from systems in countries like Switzerland and Germany.
Collier’s new book, “Rise of the Disconnected,” focuses on areas like his hometown of Sheffield in South Yorkshire. Reflecting on his visits, he expresses deep sadness over Sheffield’s decline from its former status as a thriving metal industry hub. His family’s history there included hardship and struggles during times of industrial collapse. He laments the societal issues that led to his family adopting two of his cousin’s grandchildren, who faced difficult circumstances. Collier notes it’s tragic that young people had to leave Sheffield to find success elsewhere.
The trend of deindustrialization has not been unique to the UK; however, the wealth disparity between northern and southern England is more pronounced than that seen in parts of Germany or Italy. Collier critiques the UK’s faithful adherence to Milton Friedman’s market theories, suggesting that the expectation for new businesses to emerge naturally from declining industries has failed. He underscores that Sheffield, with its significant population, cannot simply be abandoned.
Contrasting Sheffield’s situation, Collier highlights Pittsburgh as a successful recovery model. Unlike the centralized governance of the UK, Pittsburgh benefited from local leadership that had the resources and authority to craft a recovery plan. Although Pittsburgh faced challenges with the collapse of its steel industry, it has emerged as a prosperous city, largely due to proactive collaboration between local universities and businesses. Collier points out that Sheffield has solid educational institutions but lacks the necessary local initiative for progress.
While many British metropolitan areas have introduced elected mayors recently, Collier feels this change is insufficient. Mayors lack tax-levying powers and depend on short-term funding from the London Treasury, creating a system of micromanagement that hinders local governance and discourages voter participation.
Despite the promise of improved conditions post-Brexit, Collier argues that the marginalized regions have endured greater hardship than London. The economic fallout has disproportionately affected local manufacturers dependent on EU markets, while investments promised by former Prime Minister Boris Johnson have largely gone unfulfilled. Collier contends that Johnson’s ambitious plans faltered due to a lack of decisive action and support from the Treasury under Rishi Sunak.
He advocates for a shift towards reduced centralization and increased investment in underperforming regions, drawing parallels to Germany’s substantial financial support for the East. Collier believes that, although perceptions of failure exist regarding this recovery, significant progress has been made in closing the inequality gap in eastern Germany, contrasting the bleak outlook for cities like Sheffield.
As for the Labour Party, which has been in power for a few months, Collier remains skeptical. He critiques the current electoral system, which he sees as unrepresentative, and expresses concern that the concentration of power within the Treasury limits the ability for substantial reform. Collier doubts that Prime Minister Keir Starmer possesses the necessary charisma and communication skills to effectively unite and lead the public toward meaningful change.