No. 360 DECEMBER Bulletin 2009 RUNNYMEDE’s QUARTERLY Race and the Repercussions of Recession Danny Dorling looks at the inequalities emanating from the recession, comparing the fortunes of black and minority ethnic minorities with those of the white population, analysing the statistics on employment, education and housing. the greater the crash the longer a million tiny actions. Here are a it takes to take stock of the few examples: implications. The 1929 financial crisis was so great that in the Employment immediate aftermath bankers and the job losses that came with politicians assumed that the only the onset of the current crash hit In this issue: thing that was possible was a black and ethnic minorities harder quick recovery, because they had than the national average worker. • Danny Dorling on the inequalities not known different times; many although almost everywhere emanating from the recession, false dawns were predicted before a majority of the population is comparing the fortunes of BME people it was finally realized, by around white, geographical place names with those of the white population 1 1933, that much had changed for can be used as a shorthand for ever. what has so far occurred. • Omar Khan reports that even though the repercussions varied By August 2009 - the month the UK economy is now technically out around the world. In the United in which the official claimant States charismatic leaders rate returned to levels last of recession, unemployment figures are ensured the slow ushering in of seen when Tony Blair became unlikely to recover soon or at a rapid new equalities as the assets of Prime Minister in May 1997 rate 4 the affluent crumbled, and the - official unemployment rates lives of the children of slaves were highest in the Ladywood, • Liz Fekete outlines her fears that the and of slave owners moved Sparkbrook and Small Heath global recession has led to a greater slight closer together. In Berlin areas of Birmingham, in the scapegoating of foreigners 6 the repercussions were used by West of Belfast (a white minority equally charismatic leaders to build area often ignored), Liverpool • Phil Mawhinney looks at some key up racial division. Great financial Riverside (a.k.a. Toxteth), in the questions arising from Runnymede’s crashes are rarely wasted, but constituencies named ‘central’ in they can be used in many different Leeds and Manchester, and in the Financial Inclusion and Equality ways. Charismatic leaders do not Bethnal Green, Bow, Hackney Conference held in October 2009 7 emerge out of the ether. What and Shoreditch neighbourhoods is possible in the art of politics in of London. Rates of official Full contents on p. 28 times of change is determined by unemployment in the places in ISSN: 1476-363X RUNNyMEDE’S QUaRtERLy BULLEtIN DECEMBER 2009 1 this list varied between 12 and 20 education system who will suffer recession, including increasing per cent.1. Real rates will be much most, and then those whose university places in line with official higher. employers decide not to favour aspirations and the huge increase in By contrast, rates were lowest in them because, in hard times, demand that came with recession West and North Dorset, Henley, employers might be tempted more (applications up 11 per cent). Witney, Woodspring, Buckingham, to ‘look after their own’. Racism Much of the flack was deflected to 2 RECESSION Skipton and Ripon, and in was required to ensure that a the more junior Higher Education places such as the constituency majority of young Black Caribbean, Minister, David Lammy MP.5 of Runnymede and Weybridge. ‘other’ Asian and Black African Lammy had to field the complaints, 1 all figures from Unemployment rates in these men were either unemployed or but it was Mandelson who got http://www.parlia- places varied between 2.0 and 2.5 on a government scheme even as to decide what to do. In the end, ment.uk/commons/ per cent. Thus the banking bailout long as a decade after the 1981 Mandelson offered an extra 1 per lib/research/ successfully secured the jobs of recession hit, as were a majority cent of places, not full-funded, to rp2009/rp09-072. pdf Unemployment those living in these leafy Home of Bangladeshi and Black African allow universities to take a tenth of 3 by Constituency, Counties, in north Somerset near women in 1991. those extra applicants. Given the august 2009, Re- the Bristol banking back-offices and profile of those who get to go to search Paper 09/72 in North Yorkshire retreats, close Education university, and the ethnic make- 16 September 2009 to Leeds banks. High priest amongst those in up of the majority of additional the job losses are set to rise power in Britain who see salvation applicants from non-traditional 2 If you doubt that far higher. They will rise highest in market mechanism is Peter backgrounds, it is not hard to work Skipton is part in the poorest areas and amongst Mandelson.4 Throughout early out who loses out most directly of the London banking world ask the poorest groups. Within those 2009 Baron Mandelson came from Mandelson’s penny-pinching. yourself why a di- groups it will be those who have under sustained pressure to It is a little harder to see the knock rect train runs from been least well served by the alleviate the worst effects of the on effects of not taking more that small town to King’s Cross, timed to arrive at ten to ten in the capital Editorial each morning? An important part of my role as Director of Runnymede is to encourage 3 young meaning conversation and debate about race equality. This takes me to various parts aged 16 to 24 as a proportion of the country and gives me the opportunity to meet a wide range of people. of those in the I recently spoke with a large group of sixth formers in North London. workforce. Figures Intelligent and sparky, this group of 100 politics and sociology students were from the 1991 quick to identify the ways in which racism impacted on their lives. Young census given on page 92 of Dorling, people from all ethnic backgrounds were able to see the way in which racisms D., 1995, A New constrained life chances, and created and perpetuated inequalities. Yet when Social Atlas of asked what they could do about it they were less forthcoming. For many the Britain, Chichester, answer was nothing, the best they could hope for was a change in attitudes John Wiley and over generations. To hear this from 17 and 18 year-olds was disheartening, but highly instructive – Sons. Open access copy at: http:// an inspiration, if any was needed, to keep on pushing for change and providing people with the tools sasi.group.shef. to fight racisms and inequality. ac.uk/publications/ It is hardly surprising that citizens feel so disempowered and have little faith in their ability to new_social_atlas/ influence change, when they are presented with a political debate that in the face of turmoil in index.html capitalist markets worldwide presents so few options for change. As Danny Dorling argues in this 4 First Secretary of Bulletin, the presentation of supposed consensus about responses to the current recession (apart State, Secretary of from about the timing of the cuts) hides numerous possibilities for change that would reduce State for Business, inequalities and work to remove the influence of racism in the lives of citizens. He argues that, Innovation and Skills, President of ‘Great financial crashes are rarely wasted, but when it comes to race, they have either been used to the Board of trade greatly reduce division or greatly increase it, in different places but all at the same times. There is no and Lord President reason to believe it will be different this time’. Far from there being little that the citizen can do to of the Council, tackle inequalities it would seem as if the recession presents opportunities to reframe our society in former member a manner that fits our aspirations. This edition of the Bulletin focuses on financial inclusion, poverty of Parliament for Hartlepool (3872 and the recession. Omar Khan reports on employment trends, Liz Fekete of the Institute of Race claimants as of au- Relations on xeno-racism and the cover given to it by the recession, and Phil Mawhinney reports on gust 2009, up 1204 a major Runnymede conference on financial inclusion. In response to the prematurely disillusioned in the year). sixth formers, we report on Runnymede’s first event aimed at young people, and the launch of 5 Member for UKREN’s resources for young Muslims. We also mark the significant contribution to race equality tottenham (5685 and to Runnymede made by Trustees who have moved on in the past year, leaving Runnymede well- claimants as of au- placed to continue on our mission to provide intelligence for a multi-ethnic Britain. gust 2009, up 1544 Rob Berkeley in the year). Director 2 RUNNyMEDE’S QUaRtERLy BULLEtIN DECEMBER 2009 young people into universities in a gap year people who will not be we never really left it) remember time of recession. replaced by so many going on gap that half the children who live the 10,000 students who were years in future. above the fifth floor in England allowed to attend university in are not white, and your tax would 2009 have been given a chance Housing be paltry. In fact the combined not just to study, but to duck In the same week that the land value tax of all the families out of one of the worst youth paltry 10,000 extra university of all those children who live in RECESSION labour markets seen since the places were taken up, Vince tower blocks could be less than 1930s.