In his book Brown blames for what he looks like your lack of morals bankers, not only for their incompetence but. Photo: Shaun Curry/AFP/Getty ImagesThe phrase "Horses for courses" is as valid for politics as for other activities. It is impossible to think, Gordon Brown at the recent meeting of FIFA in Zurich brief of England cause for the World Cup as it is to imagine David Cameron, which the nitty gritty of capital adequacy ratios at a meeting of the G20. The economic crisis in 2008-9, Brown, like Churchill 1940, was the right man at the right place at the right time. He had 10 years as Chancellor of the Exchequer. He would read and thought deeply about economics, finance, globalization. He was a national leader who came the crisis with a plan and the authority to enforce it.
This is his story, as he did, said soberly, clear, compelling. A heroic moment in it is no defense of his premiership, but his personal account. He does not claim credit for "Save the world", but the story for yourself speak can and praised the contribution of his own team and the other world heads of State and Government. It's a broken story because he did not last long enough, politically to end work survived. Left because he scene efforts to coordinate recovery policies have fallen into pieces. This is the measure of its performance - and the hole that leave his departure.
His finest hour was in the seven months after the collapse of Lehman Brothers in September 2008, as the world economy that he was in the freefall, and while its de facto leader was. He was about what to do was clear: first, the banking system had to a large injection of capital; be saved then the economy had with a great stimulus to be restarted. Both steps had to be coordinated in order to work with the other major countries. His mantra was (and is): "Global problems need global solutions." He filled the leadership gap at a time when no one else could a mixture of ignorance in Europe and political interregnum in the United States.
At the first Brown, like most others, thought that the banking crisis by illiquidity - the inability of banks, night cash to their short-term liabilities due to impaired mortgage assets meet caused to increase. When huge global injections of cash in 2007 8 failed to revive Bank lending, Brown was convinced that the problem in fact, was one of the solvency. Banks had loans with insufficient funds were frivolous and then deny or hide their losses. "Recapitalization" (or partial nationalisation) banks in return for full disclosure of losses was the only way to prevent a collapse of the banking system.
October 8th, 2008 Alistair Darling announced a £ 50bn-schema to beleaguered British banks share purchase. Brown had been surprised if Fred Goodwin, CEO of the Royal Bank of Scotland, told him: "all I need is finance." (Later Goodwin asked the Ministry of finance, A few days it £ 20.) In Paris on 12 October Brown Government – and two days later days Henry Paulson of the U.S. Treasury persuaded European Heads of State and – a coordinated "Recapitalization" their banking systems to agree. The decision this given the first bank track hostility, was the largest a Brown was PM.
His second signal Act of the leadership was on the G20 Summit in London in April 2009. Recapitalisation had saved the banks, but had not restarted, Bank lending. Brown spent his family summer holiday in 2008 read on the great depression and this persuaded him that a massive, coordinated "stimulus" package was needed to revive the "real" economy. April 2nd, 2009 he announced $1tn of support for the global economy: extra IMF special drawing rights, extra World Bank resources for the less prosperous countries, extra trade credits, plus a world to manage risks and coordinated monetary and fiscal stability Board expansion. Was a hard chaired of this militant meeting. He had learned from his time as a student Rector of the University of Edinburgh, who "need to drive meetings towards conclusions and not just wait for you". But the heads of State and Government also trusted his financial expertise. World Bank President described the G20 package of the global economy as the thing "broke autumn".
This is an intense book with a few revelatory moments. The reader would not gather while Brown was worked to save the world, its national political position is crumbling. For an instant account from the Brown Premiership need to turn to Anthony Seldon's and Guy Lodge of Brown on 10.
Yet, what selects Brown, to reveal is instructive. He likes statistics because he sees "Stories behind figures". He tells how he "challenge" by widely read advice the cleverest people available and then the alternative decisions think through the consequences prepared. This ordered mental preparation is in stark contrast to its chaotic administrative habits. The book is infused with a subdued moral passion. The lack of demand is "Not an abstract issue but a deeply moral;" "I think it is simply wrong people without jobs and the ability to build a better life for their families when work must be done is to let". Brown accused the bankers not only for their incompetence, but their lack of morality.
Brown more follows fallen leaders more admired abroad than at home. He came to poverty in developing countries than in Great Britain, a correct priority for a politician, but elected politicians care fatal for one. At a Summit in Italy he brought tears Berlusconi eyes and a more practical response from Obama with the history of a young died tortured in Rwanda.
The crisis, Brown warns right, is not over yet. The last part of the book well worth reading for its itself will is his recipe for the balanced growth of the global economy with every continent a contribution towards the recovery. Can his premise - in question, that the United States and Europe is not your "lost output" on your own to "Consolidation" - replace, because you have no alternative, but that's an argument, he would enjoy.
Stop misleading his 2008 9 into the slide into a depression, Brown remains too optimistic what can achieve Summitry. His "global compact" for growth, employment and poverty reduction is a noble vision we can stumble through many new crises but can't either. One can only hope this brave, caring and decent man who rose slipped on the highest challenges but on the lower hang politics a post political life according to his abilities, interests and makes good to do can find.
Robert Skidelsky's Keynes: the return of the master is published by Penguin
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