There appears to be no end to our economic woes. Britain’s economy slipped into its second recession since the start of the financial crisis around the turn of the year, and fears of a longer slump have been rising as companies hold back investment. What is more, there has been a sharp deterioration in the outlook for the global economy over the last six weeks.
All this has apparently caused Bank of England governor Mervyn King to back an extra £50bn of quantative easing,
Explaining his position to the House of Commons Treasury Select Committee, King said, “What has particularly concerned me in the last several months – why I have voted for more easing policy – was my concern about the worsening I see in the position in Asia and other emerging markets, adding “…my colleagues in the United States are more concerned than they were at the beginning of the year about what is happening to the American economy”.
According to the Guardian, Mervyn King went on to say, “We are in the middle of a deep crisis, with enormous challenges to put our own banking system right and challenges for the rest of the world that they are struggling with.”
It is now quite clear that Britain has not recovered from the 2008/2009 slump that has left many Britons worse off, and fears are rising that another prolonged recession would do lasting damage to the economy.
You would have thought that the Tory-led Coalition Government would realise that it needs all the help it can get to make sure Britain’s interests are recognised in other countries and that the damage caused by the economic crisis is minimised across the world. One way of achieving this aim is through the soft power wielded by the BBC World Service.
The global impact of the World Service was, in fact, graphically illustrated last week when Burmese freedom fighter Aung San Suu Kyi toured the organisation’s offices, meeting many of the broadcasters she listened to while under house arrest in Rangoon.
Unbelievably, at the end of 2010 the Foreign Office under William Hague decided to slash the World Service budget by around 20%, or £46m a year, by 2014. As a result the BBC in January 2011 confirmed plans to close five of its 32 World Service language services, estimating that audiences will fall by more than 30 million, from 180 million to 150 million a week.
As if this wasn’t enough, the BBC executive who runs the World Service, Peter Horrocks, has recently asked his journalists to come up with schemes to raise money.
This is surely no way to treat the World Service which truly justifies the over used soubriquet “national treasure”. The cut to its funding by the current Tory-led Government was a major misjudgement which totally underestimated importance of the World Service in boosting Britain’s standing abroad, a vital requirement in these perilous economic times.
I recently had an inkling of how the BBC is perceived when a Swedish MEP told me just how honoured and overjoyed he was to be invited on to the BBC “The Record Europe” programme. David Cameron, William Hague and the other luminaries in the Coalition Cabinet would do well to take such views on board. The BBC is the face and voice of the UK across the world and it benefits Britain enormously. It would be a real tragedy if political dogma were allowed to prejudice this huge asset.