Mongolia signs up Tony Blair as government adviser

Former Labour Prime Minister Tony Blair - now a global consultant estimated to be worth £50 million - has signed a deal to advise the Mongolian government. Other countries which pay for Mr Blair’s consultancy services include Kazakhstan, Columbia and Kuwait. VoR’s Vivienne Nunis reports.

The former Prime Minister Tony Blair received warm applause and more than few laughs at his self-deprecating jokes as he addressed a crowd at Stamford University in May last year.

It’s speaking engagements like that one and a string of consultancy deals with foreign governments that have earned Tony Blair an estimated £50m since leaving office.

Mongolia signs him up

His latest deal was struck with the government of Mongolia. Mr Blair signed the contract with the country’s leaders during a visit to the capital Ulaanbaatar in March.

It’s been reported the former leader, who’s famous for ending the conflict in Northern Ireland, will be a key negotiator in disputes between the government and mining giant Rio Tinto. But both Blair’s office and Rio Tinto deny that’s the case.

It’s more likely Mr Blair will be advising current leader Tsakhiagiin Elbegdorj in the lead up to presidential elections later this month.

Mr Blair’s deal comes in the midst of Mongolia’s mining boom and although it’s not clear exactly how much his consultancy firm will be paid, it’s safe to assume it’s not an insignificant figure.

A similar deal with the government of Kazakhstan is believed to be worth £13m.

Also filling Mr Blair’s consultancy portfolio are deals with Columbia and Brazil. The Albanian Opposition Leader Edi Rama has also publicly indicated he’d like Mr Blair’s advice if he becomes Prime Minister. Mr Blair has said he’d be happy to help.

Why do they stump up?

So why do these countries pay so much for the services of Tony Blair?

John Rentoul is chief political commentator for The Independent on Sunday. He’s also written a biography of the former prime minister.

“He brings to them a very good contacts book in that he understands international politics. He knows a lot of world leaders. He knows a lot of important corporate, business leaders and so he can help make the connections that countries like Kazakhstan and Mongolia need and I don’t think there’s anything sinister or wrong about any of that.”

John Rentoul says the governments in those countries have realised good quality governance is crucial in fostering economic development.

“If you don’t have the rule of law. If you don’t have efficient and effective public services, then it’s very difficult to get economic development following.”

Property portfolio

Mr Blair and his wife Cherie own eight homes in the UK including a townhouse in London’s Connaught Square, a mansion in Buckinghamshire, and properties in Bristol and Durham.

But it’s not just consultancy positions earning Tony Blair millions.

Mr Blair is a senior advisor at investment bank JP Morgan and advises the Swiss insurance firm Zurich Financial Services on climate changes issues.

Speaking circuit

Then there’s the lucrative speaker’s circuit.

Mr Blair is signed to the Washington Speakers Bureau on a contract reportedly worth £500,000. A spokesperson from Tony Blair’s Office says it doesn’t comment on costs.

In 2009, he earned almost £400,000 for two half hour speeches in the Philippines – not bad when you consider that’s more than he earned in two years in Downing Street.

Ethical dilemma

So is there an ethical dilemma when it comes to former civil servants, like Mr Blair, earning money from the skills they gained while in public office?

Blair’s biographer, John Rentoul, says:

“I accept there is an issue about former politicians trading on knowledge they gained in the public service but generally, people like Tony Blair could’ve earned a lot more in the private sector. I don’t regard his accumulation of wealth as disproportionate or in any way offensive. I think he’s always been true to himself in that respect - New Labour was in favour of people making a success of themselves”

John Rentoul highlights Mr Blair’s charity work, pointing to the fact the former leader donated all the profits from his memoirs to the Royal British Legion.

How is Blair as Peace Envoy?

Then there’s his unpaid work for the international Quartet as Middle East Peace Envoy.

I asked John Rentoul if Mr Blair had achieved very much in that role, which he’s held since 2007.

“No, but that’s not for the want of trying. Whether the Palestinians and the Israelis are going to negotiate is beyond even his capability I’m afraid.”

The Mongolian deal doesn’t look to be the last for Tony Blair.

On Sunday night he stopped over in Romania for a dinner with Prime Minister Victor Pontor.

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