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Fraser Nelson They wish we all could be Californian: the new Tory plan

28 February 2009

Fraser Nelson says that the Conservatives are taking their cue from the West Coast of America: the land of Google, Stanford University and venture capital. They want to rebuild Britain in California’s image: dynamic, high-tech, green and ‘family-friendly’

Once every fortnight or so, David Cameron’s chief strategist lands at San Francisco airport and returns to his own version of Paradise. Steve Hilton has spent just six months living in this self-imposed exile — but his friends joke that, inside his head, he has always been in California. Look at it this way: this is the place on Earth which fuses everything the Cameroons most like in life, where hard-headed businessmen drink fruit smoothies and walk around in recycled trainers. It is where a dynamic economy meets the family-friendly workplace. And it is here, to an extent that is greatly underestimated, that the Conservative government-in-waiting is looking to find a new blueprint for Britain.

For some time now, George Osborne and Mr Cameron have been dropping hints about how West Coast ideas might be used to rebuild post-recession Britain. ‘This needn’t be California dreaming,’ the shadow chancellor declared a year ago. ‘It can happen in Britain.’ It would be an error to write this off as mere whimsy. For herein can be detected a vision of Britain’s future, of growing depth and clarity, which will be implemented from the first day of the Tory government. And it is all inspired not by a book — as Hayek’s works inspired Thatcherism — but by a place.

It is not unusual, of course, for British oppositions to look to America for inspiration. Tony Blair and Gordon Brown did their ideological shopping in the mid-1990s and the results can be seen all around us — from tax credits to Sure Start nurseries to Bank of England independence. Few noticed the significance of this at the time: did it really matter if the shadow chancellor (aka G. Brown) was spending his summers on Cape Cod having barbeques with economists? As it turned out, this experience was transformative — for him, and for Britain.

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Bob Pickett

February 26th, 2009 6:30am Report this comment

What about the other lessons of California conservatism? The progressive conservatism or me too conservatism that gains power in California leads to financial ruin and cultural decadence. Mr. Cameron seems to share at least one thing with Mrs. Thatcher though - he models his politics on an Austrian emigre. Unfortunately, I believe Hayek was a better choice than the Gubenator.

Craig Strachan

February 26th, 2009 7:05am Report this comment

California is still decidedly undecided about what the "California formula for green tech" may be.

Two green tech ballot initiatives (Props 7 and 10) were defeated at the polls in Nov 08, but succeeded in pitting various environmental lobbies against each other - which may have been the whole point.

Measure B, a solar power initiative on the ballot in Los Angeles next month, is also looking problematic.

I take it the Tories aren't interested in importing some California-style direct democracy? Because California could probably make do with a little bit less.

Exiled Briton

February 26th, 2009 11:18am Report this comment

I've become a bit more optimistic about Cameron in recent days. He seems understandably focused on not scaring the horses.

However, once he's in power, he should stand for more than gimmicks. And if he does stand for something, I'm with Bob Pickett above in sounding skepticism about California: the state is in a complete mess.

The good things about California mentioned by Nelson in this article would have to be built on traditional conservative ideas: sound money, small government, the rule of law, security at home (crime) and abroad (armed services).

If Cameron is interested in high tech, green, family oriented, pro-business conservative policy, he might also want to look at Germany's Bavaria.

Jim Carr

February 26th, 2009 1:52pm Report this comment

More madness from Hilton, he should stay there for good.
California is haemorrhaging jobs and investment due to its insane "green" policies.

perdix

February 26th, 2009 2:06pm Report this comment

Having lived in Silicon Valley for a number of years and followed its progress on the web subsequently,there are familiar themes running through that society at local level: agonising over the "achievement gap" between pupils and harassment of police chiefs who are accused of "racial profiling".California is a very PC-oriented State.
The idea of universities, venture capital and hi-tech industries working together is a good one, but remember that Stanford is a private university.

James

February 26th, 2009 2:20pm Report this comment

"Mr Cameron has solemnly declared that Britain is to become a ‘world leader in battery-powered cars’ — thereby leapfrogging California itself, whence this sort of ambition is explicitly imported."

Possibly because in California, they've already ditched battery power and moved on to hydrogen, which is much more attractive and viable. A fine example of why politicians like Cameron shouldn't micro-manage broad issues like environment, technology and the economy.

John Gillman

February 26th, 2009 9:34pm Report this comment

Taking possibly useful ideas (in cost saving, administration control, technology transfer etc.) from California or elsewhere, and sensibly applying them to a British context, is one thing. Getting enthusiastic about changing British character to be like others is absurd and repulsive. The political class is still, after 60 years of conspicuous failure in all areas of social and economic policy, trying to bully the nation into misconceived ideals that it (the nation) has no mind to adopt...political correctness, racial diversity, comprehensive schooling, the wonderland of the EU, and so on. And always with taxpayers' money. The nation has been changed for the worse, by the imposition of such precepts, and made miserable, by mountebanks, who always think they know the public good better than the public. Goverments, broadly, are not there to transform, but to protect...law, order, financial stability, border control, defence etc...thus creating the proper conditions for freedom to flourish. That freedom will then be the leaven of serious and solid betterment, in character with the people of the nation, not grinding in opposition to it.

ndm

February 26th, 2009 10:47pm Report this comment

I don't think we should be lauding the Conservative leaders for hanging out at Google as if the knowledge there will be particularly relevant to the future of British entrepeneurialism. Google represents more of a lottery win than a traditional venture-capital based success. Other than an better search engine, Google has not really been able to develop much internally with all the revenue provided by the advertising model it initially licensed from Yahoo. gmail, after all, came along years after hotmail brought us viral marketing. Basically, Google has been unable to develop serious alternative revenue sources. As to 23andMe - it may be Google-backed but, more importantly, it was co-founded by Anne Wojcicki who is married to Sergey Brin.

Only someone unaware of Silicon Valley's justifiably intense dislike of Carly Fiorina would describe her as among the "best and brightest." She is viewed as the person who single-handledly almost destroyed Hewlett-Packard. That is not the kind of behavior that is going to win many admirers.

I have read few more lunatic suggestions that the idea that Britain replace the NHS computer programme with "free-to-use Google Health." The last I heard the main guy responsible for Google Health had bailed leaving it in disarray. However, the idea that Google Health or Microsoft HealthVault solve any more than a microscopic part of the healthcare information infrastructure is ludicrous and a demonstration of woeful ignorance.

I have always been puzzled about concern about "expense over 25,000 pounds." Indeed, I am surprised about companies that will agonize over that kind of spending or huge corporations requiring CEO signoff on purchases costing $1M by departments whose annual labour costs are far larger than that. So, here we are looking for a requirement to publish every expense over 25,000 while ignoring the labour costs associated with a single well-payed employee.

The reason why Stanford collects more external investment than Oxford, Cambridge and Imperial is that it is in the middle of one of the wealthiest places in the world. It differs from the three British universities in that the majority of its students are post-graduates. It is not for nothing that the four founders of Yahoo and Google were all postgraduate students not undergraduates. This gave them significantly increased access to the venture connections of their departmental colleagues over that of their undergraduate peers. UC Berkeley which is Stanford's closest peer shares with the British universities the dominance of undergraduate studies over postgraduate studies.

A fair number of years ago Michael Porter wrote a book on the competitive advantage of nations - explaining, for example, why Bergamo was particularly big in tie making because the area had over time developed the infrastructure to support that business. Silicon Valley, similarly, has developed the infrastructure for Venture Capital to flourish. This requires the availablity of significant quantities of risk capital along with the people willing to generate ideas that can utilise the risk capital. But it also requires a large cadre of individuals who are willing to take significant risks with their own livelihood to work at these startup companies in the many roles needed from product development to administrative staff and everything in between.

My impression is that the easy pickings of Empire caused immense damage to Britain. It is fashionable to blame all problems on British workers but British management and company owners deserve much of the blame (in the same way peole are finally holding bankers responsible) for their poor management and governance. There was far too much focus on getting that quarterly dividend out the door to shareholders and too little focus on investment in developing better products. Now, perhaps that has changed but a Conservative Party smitten by the lottery win that is Google does not inspire much confidence in me that the future will be all that different from the past.

ndm

February 26th, 2009 10:49pm Report this comment

James writes "[p]ossibly because in California, they've already ditched battery power and moved on to hydrogen, which is much more attractive and viable."

They have? I'm surprised at that since the current ecological disaster in California is that there is barely enough water to drink let alone squeeze hydrogen out of.

Guy Darcy

February 27th, 2009 7:22am Report this comment

Err ... this is lunatic. California is not a feasible model for the UK. Britain's universities are far-left government bureacracies, the people as a rule are jealous of others' success, there is little labor mobility, taxes and regulations are far too burdensome, and the culture of the place is simply not professional.

Perhaps Mr Osborn should aim lower and try to emulate Germany ...?

(I am an ex-Brit now US Citizen and resident of the Golden State).

I Crann

February 27th, 2009 8:15am Report this comment

Record government debt; substandard education; businesses leaving due to onerous taxation and legislation (soon to be made worse by 'global warming' regulations to appease greens) - Britain is already there. The Conservatives should be moving in the opposite direction towards limited government which benefits citizens, rather than politicians, lobbyists and pressure groups.

Tm Love

February 27th, 2009 3:46pm Report this comment

California is in massive debt due to the US democratic party "progressive" policies. They over spend year after year and tax more and more. Business are fleeing, the middle class is fleeing. Without bailout money from the Feds, the state would collapse. Everybody here is crying for money. This was once a vibrant state with hope and freedom, now it is a liberals dream with dependent minorities waiting for hand outs.

Gwilym Rhy-Jones

February 27th, 2009 5:00pm Report this comment

It would be easier to muck out the Augean stables and shove a camel through the eye of a needle. Good luck, Dave, you'll need it.

Jez, Leeds

February 27th, 2009 11:12pm Report this comment

But I can't speak Spanish.

Nick

February 27th, 2009 11:43pm Report this comment

I am a native Californian who has worked in the Silicon Valley. If you're planning on modeling your country on our state you are out of your ever loving minds. California has "tech" because the tech boom started here. We are living on our legacy and the legacy won't pay the bills forever.

Jack Hughes

February 28th, 2009 9:09am Report this comment

Before reading this I thought Cameron got his ideas from a focus group picked at random in the BBC canteen.

F.T.R. Chichester

February 28th, 2009 1:03pm Report this comment

I don't think I've ever read such a vacuous piece of piffle. Do the Cameroons do anything other than spout off the latest gimmicky ideas? It was Nudge six months ago. Now it's California. What next?

The contrast between the sound intellectual moorings of the Thatcherites and the shallow, nebulous gimmickry of the Cameroons is quite heartbreaking.

David B

February 28th, 2009 4:10pm Report this comment

"replace the clunky NHS computer programme with the free-to-use Google Health"

What about privacy and data protection then?

Clive Mather

March 3rd, 2009 1:12am Report this comment

Oh dear, not AGAIN! One of our lacklustre political parties takes a dollop of half-baked concepts from another country and uses them as a substitute for home-grown thought.
In the old days Labour took central planning from the USSR. More recently Heath conned us into joining the Brussels imperium. Mrs T. loved brash New York style capitalism and the extremist economists who provided its intellectual authority. Blair was very taken with Singapore (free market plus totalitarian social control).
Could we please get the thinking caps on and come up with something which does not resemble foreign governments' PR output?

Mcgraw

March 3rd, 2009 10:57am Report this comment

California .
The home of the porn and drug industry.
The creator of the PC ideology.
The home of the greedy.
The home of the superficial.
The home of the creation of micro managing their citizens lives .
I'd give it a wide bearth if I was you.
Bliar and Broon did not.
Look what we have now .
It failed.
"Have a nairse daiyyyeeee".

Lindsay Nation

March 3rd, 2009 11:41am Report this comment

This article is a perfect summary of why I, if I were a British voter, would not vote for the Tories at the next election. The fatuity of the first paragraph is beyond parody-"fruit smoothies...recycled trainers" and a liberal dose of the global warming Kool-Aid. For goodness sake....

Mr Osborne's meetings with Russians and Lord M. have "done his head in"

Ashley

March 10th, 2009 2:18pm Report this comment

Whilst I am the most cynical human being alive regarding climate change and the utter pointlessness of trying to prevent it, I can spot an opportunity when I see one, and environmentalism is definitely an area in which Britain can lead the world. There's money to be made in conning, er, convincing the world they're going to die prematurely. Just ask Al Gore.

PS. I heard Mr Brown proudly boasting last week that Britain is a "world leader in video games". Yes, playing them Gordon, playing them.

Bianca

March 15th, 2009 4:18am Report this comment

California is broke. It is on a brink of giving pink notices to over 35,000 teachers. The budget does not allow for paying bills, and many remain unpaid for months. California is no different from New York. Both practiced an economy that could not be sustained. The lecture on sustainable development is given by IMF to all countries that are trying to get their heads above the water. Too bad there is no IMF plan for California. I would love to hear their recommendatons for necessary reforms and belt tightening.

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