the cracking seems to be in the smooth plinth.
the pebbledash does not look cracked, perhaps because the stones break up the surface and discourage crack growth.
it might be that the wall is built of lightweight blocks and they expand and contract at a rate different to the render. it looks like the bottom of the wall will get wet in rain, and (hopefully) dry out in dry weather or sunlight. If the wall was built of bricks they would look better exposed, so probably not.
It's undesirable to have the wall of a partially basement room in contact with the ground and paving, because it will promote damp. Is the inside wall damp? Do you know if steps have been taken to protect against damp?
The cracking pattern suggests the plinth is coming away from the wall in broken pieces like crazy paving. Perhaps the mix was bad or is not adhering properly. If you tap it with your knucles, does it sound hollow? It might also have been loosened by water freezing behind the plinth and pushing it off. I don't see a drip on the bottom of the pebbledash to throw off water, and the plinth actually projects so that water will lie on the ledge and soak in.
scrape the paint off the plinth to encourage evaporation from the surface. When the plinth falls off you can have it done in a plain mix, not painted, you can use white cement and white sand if you want.