Tag Archives: social democracy

Social democracy and shared identity

Social democracy and shared identity

The prosperity and social harmony western countries experienced in the aftermath of the Second World War were largely underpinned by social democratic principles and policies.  Yet in more recent decades social democracy has been in retreat, as shown by the decline of centre-left parties across Europe.

Paul Collier, a distinguished economist, recently outlined his vision of how western societies can renew social democracy.  His central contention is that we must re-establish a national “domain of shared identity”.

Collier isn’t the only prominent thinker to make this sort of argument.  Sheri Berman, a political scientist, also suggests that social democracy’s revitalisation requires a “strong sense of fellow feeling … fostered within national borders”.

These scholars emphasise shared identity due to social democracy’s strategic goal.  This ideology’s starting point is that capitalism produces “unprecedented material bounty” but at the same time has socially deleterious consequences, such as extreme inequality, social dislocation, and atomisation.  Its proponents therefore seek to harness the productive capacity of capitalism while protecting society from its harmful effects.

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Challenges facing the centre-left

Challenges facing the centre-left

Across Europe the centre-left is in decline.  The leader of Denmark’s Social Democratic party, Mette Frederiksen, has recently given her take on how to reverse this trend.

Frederiksen states that the centre-left’s weakness stems from the breakdown of a social contract that combined “an effective market economy … with a strong welfare state”.  This social democratic “recipe”, as she calls it, allowed societies to be both rich and fair, and its unravelling has contributed to rising inequality and growing economic insecurity. Given that the historic mission of social democrats is to rein in capitalism’s worst excesses, this situation has resulted in the centre-left losing many of its traditional supporters to populists.

Frederiksen isn’t saying this recipe is defunct, however.  She argues that the social contract it sets out remains as relevant as ever, precisely because it seeks to ensure that markets serve citizens and everyone is secure.  Where the centre-left has erred is in failing to adapt this recipe to the challenges of globalisation, and in particular to the challenge of raising tax revenues.

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