Thursday 7 April 2011

More red noses

Policy madness has spread from Red Nose Day to the Coalition government. Hot on the heels of Comic Relief's wilful blind-eye turned to the damage done to Kenyan health-care by the country's doctors' exodus abroad - to the UK, amongst other places - comes news that David Cameron has given a couple of hundred million quid to Pakistan for new schools.

The obvious question here is whether the government should be giving money for schools to another country at a time when it is making cutbacks in its own education programme; Cameron would perhaps say that he needed to mend fences after his remarks to the effect that Pakistan has faced both ways when it comes to terrorism (a statement as undiplomatic as it was true); he might also point out that educating young Pakistanis away from the madrassas might lessen the chances of their turning to extremism (although our home-grown terrorists seem to be thriving amidst the further educational opportunities provided by Britain's universities); whatever, I doubt that a cost-benefit analysis has been done.

The other less obvious point relates to my recent Comic Relief post. A Pakistani MP I heard interviewed on the radio defended Cameron's gift, as you might expect. The interviewer, Aasma Mir, pressed the MP on why Pakistan couldn't pay for schools itself - after all it was a country with a lot of very rich people, in which corruption was rife and tax evasion routine; Mir might have added that it was a country which could afford a nuclear weapons programme. The MP blustered. What, Mir, asked, was Pakistan's top rate of tax? Amidst more bluster came the answer: 35%.

So there you have it. Britain, a country with a marginal tax rate of 50%, presently cutting its education programme, is funding schools in Pakistan, a country with a marginal rate of 35%.

Just as it might be better for the UK to train its own doctors and encourage Kenyans to practice medicine at home, perhaps it might be better for the UK to show Pakistan how to set up a functioning tax system.