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Business & Economy

Why Clever Welsh Politics Fail to Produce Business Results and Economic Growth

Posted on 19 November 2009 by Denis G Campbell

wales-2By Denis Campbell

3rd in my series on Economic Development and Politics in Wales made more critical by this week’s growing ‘silly season food fight’ over the Labour Leadership election.

It’s been anything but a quiet week in Lake Woebegone, (apologies to npr, Garrison Keillor, and most in Wales unfamiliar with the reference).

After my Sunday’s BBC The Politics Show Wales appearance came a firestorm of criticism on Monday when I further suggested on this page that the Welsh Labour Party leadership race and perhaps Welsh politics in general, were guilty of subtle (and not-so) institutional sexism.

The good folk at WalesHome.org were quick to jump saying I was picking unfairly on one of their writers. Then a comment of mine on Cambria Politico’s blog led to a strange cellphone call made from outside the Synedd building from a representative of one of the three party candidates. The off-the-record conversation brought back memories of 1972 and Watergate’s ‘Deep Throat.’ While neither threatened nor told to “follow the money” it was a trifle un-nerving to think this race could create a threat against Cambria Magazine and its editorial team. (Disclosure: I have contributed to their magazine as well as The Western Mail in the past, indeed the 1st article in this series ran in their previous issue.)

Then came yesterday’s Western Mail article from Aled Blake where UWIC’s Professor Robert Huggins challenged Wales’ business fitness in growing technological world. It was here many of my economic development and political complaints came full circle.

Simply, if the Assembly spent half the time invested on this leadership campaign working on real economic issues, using their fiduciary and legislative oversight responsibility to question expenses and reign in the profligate International Business Wales (IBW) travel spending spree at taxpayer expense and simplified the recently completed 16-month long and very expensive All Wales Convention initiative just to re-state the obvious, perhaps Professor Huggins words could be dismissed.

But when you have an economy and job market where 70% of all workers are in the public sector and they live off the sweat and toil of the remaining 30%, the businesses in this recession trying to grow the economy, therein lies the apathetic rub. When the government continues to grow as revenues shrink, from where will relief come?

When a 3-year, £3 million pound contract awarded last Spring to public relations firm Hill and Knowlton and four other firms in Japan, Hong Kong, Sydney, Mumbai and Seoul was brought to my attention, I threw up my hands in disgust. The firms were engaged by International Business Wales (IBW) to “act as a marketing consultant for IBW, promoting a positive awareness of Wales through a marketing programme likely to include (my emphasis) advertising, website maintenance, direct mail, hospitality, and exhibition and event management.”

So is it a case of more good money flying (quite literally in this case) out after bad as explained in the 2nd segment of this series? And the question still sits unanswered.

Why are we spending so many limited precious resources in an area of the world where there already exists a wealth of innovation, technological jobs, skilled engineers, university graduates and cheap labour?

Yet Wales will still spend £1-1.5 million pounds of taxpayer funds in that region over the next 12-18 months to do exactly what?

And then we have the much ballyhooed debate on devolution and more powers for the Welsh Assembly. Even forgiving £1.5 million pounds spent on a 134-page report saying Wales should have more legislative law-making powers, questions exist for all parties:

  • how do you propose to find ways to pay to sustain your lifestyle?
  • What with no central bank, infrastructure, natural resources (beyond world demonised coal and limited water) do we have to sell?
  • Why would we not be bankrupt in a month with the current government talent running the show if freed from the oppressive Westminster teat?
  • Will a devolved Wales print Welsh Dragon dubloons?

As Professor Huggins said in The Western Mail: “Wales has formed a vicious, rather than virtuous circle where living standards and competitiveness are continually moving on a downward curve. The country lacks innovative ideas to address the problem, which is proving a barrier to growth when coupled with the lack of investment in knowledge.”

Ireland did not grow by closing its borders and discouraging investment. It did not move slowly and take 7-business days to respond to a constituent e-mail. Ireland did not grow by following archaic and slow processes of shifting paper and mindless debate. They grew by taking a “what will it take for us to succeed” attitude and worked together with business… at the speed of business. That is an integral part of the missing innovation of which Professor Huggins spoke.

Innovation requires swiftness, street smarts and skills. Where do they come into play and where can Wales get them is the real issue? When will we cease with purely political appointments and find seasoned, talented executives to lead economic development and they in turn be given the authority to clean house and make their operations lean, mean and productive? Until then, we can expect more of the same, regardless of who wins the Labour leadership fight and/or the next general election.

All of Wales cannot afford to wait for either eventuality.

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Denis G Campbell is the American Editor of UK Progressive. He is a political and business pundit contributor to both BBC television and radio. Denis specializes in translating the American electoral and governing process for UK and EU audiences and vice versa, contributing regularly on UK elections and issues to the Huffington Post. He has contributed to newspapers and magazines around the globe. In his “spare” time, he is managing director of Target Point Ltd focused on social media, communication strategy, leveraging technology, corporate change and building world class selling organisations. Denis has lived in the EU since 1998.
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Comments

  1. Michael Cridland November 19th, 2009 at 6:59 pm

    I must confess the way this labour leadership has been conducted in a “Obamasce” way has been absurd. This election is going to be conducted by a tiny proportion of the Welsh population/electorate (infact some of the votes will be cast by voters who have not even been conducted. I think if our political setup was like London possibly the Welsh masses might be intetested. Other than that Welsh business is not only down the toilet but is halfway to the sea!!

  2. Guffington Pist November 19th, 2009 at 9:52 pm

    I haven’t read such warped logic and such self-regarding crap in a long while. How you can drag in a neighbourhood spat you’ve had with another Welsh blog, Cambria Politico’s rabid and libellous anti-Lewis lies, before reminding everybody - again - that you’ve really arrived by appearing on The Politics Show (whoopee shit) and then tail it all off with a load of under-researched and frankly incorrect flannel about the Welsh economy, and call it a post?

    Why are you throwing your lot in with CP? Do you really understand freedom of the press? Really understand it? If you did, and if you’d spent more than half an hour on a TV set, you’d know that with freedom comes responsibility, and with responsibility comes the duty to FACT CHECK.

    Not one single word of this piece that you defend so vehemently is substantiated. So don’t ever pretend to be part of the press. You’re just a blog troll, like the rest of the trash.

  3. Michael Cridland November 20th, 2009 at 12:36 am

    What a load of guff GP. What needs to be substantiated? The accusation that Huw Lewis has a screw loose, or that the Welsh economy is in big trouble. A point made by a most economists and ordinary folk with common sense. Have you seen the balance trade? or Wales place in the UK economical league. If there is anyone who is unable to see reality. Its the troll that’s just posted here.

  4. Guffington Pist November 20th, 2009 at 7:04 am

    Guff off, Cridland. It’s plain to anyone with half a brain what I’m talking about. Go back and re-read my comment. Slowly.

  5. Denis Campbell November 20th, 2009 at 7:19 am

    Just keep it clean lads. All are entitled to opinions, even those cleverly named. Dialogue here is unfiltered unless rude language is used (specifically swear words), then a post is simply deleted. No problem with ‘having a go’ at me or any contributor.

    Gist, That was my 9th appearance this past year on TPSW as well as am|pm, Good Morning/Good Evening Wales, BBC network, itv, Channel 4 and others. US and NL contributions would take too long. I “arrived” in Wales 6-years ago from NL, ran a business that attempted to get much vaunted WAG funding for expansion and technology that took 6-weeks just to get a return phone call and almost three for a follow-on defensive e-mail response.

    My general politics ’street cred’ come from working on campaigns, with party leaders, in lobbying shops and many of them were once (or currently are) key House and Senate members, US Cabinet secretaries and Ambassadors within both parties. I’ve been actively involved in politics since the 70s, travel 2-3 times a year (on my own dime) to Capitol Hill to meet with members of House and Senate, key staffers and WH staff to stay on top of developments in financial and health legislation. I write for many newspapers and magazines around the globe.

    I don’t throw my lot in with any group or party. I do worry when someone is unfairly attacked including some of the personal character/illness slurs against Mr. Lewis. And I will fight to defend anyone’s right to say anything.

    There is no horse for me in this contest. I can’t vote in it. I despise though gamesmanship or brinkmanship. If you take the time to read the archive, I’ve been critical of all parties when they fail to meet the standards voters expect. That’s journalism.

    This is an opinion magazine. And I get editorial assistance from several sources when I feel too close to an issue to ensure I do not cross the line. And I’m actually quite tall so troll may not work as a reference point but it was very clever.

    Like on telly Gist, if you don’t like the content, just change the channel.

  6. Cambria Politico November 20th, 2009 at 8:56 am

    Guffington Pist?? Oh I see - a play on words. Something to do with Huffington Post? Too clever by half for a Liebour troll. Did they unleash you from aneuringlydwr blog then? Why,why,why…Hahahaha! Thanks for the stats you plonker.

  7. Michael Cridland November 20th, 2009 at 11:29 am

    Yes I did read it. However anyone with half a brain would have ignored the original comment, with all this attention it will probably get into the local press. As I said I did not care much for the CP article but this does not do Huw’s campagn any justice. In fact GP you may not even be a Labour troll, you could be working for the other side (whoever that is)

1 Trackbacks For This Post

  1. It’s the Top Line Sir. An Open Letter to the New Welsh 1st Minister | UK Progressive says:
    December 7th, 2009 at 8:44 am

    [...] 70% of its jobs, economic development and growth controlled by and coming from the public sector. Without a robust private sector generating jobs and wealth while building things of value, you and your government are destined for [...]

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