WE Social Democracy

West European Politics
Social Democracy and the European Social Model

Social Democracy
What is it? What is its vision for society?

Historical roots in Europe

Means of Obtaining Social Democracy
elections, representative government, welfare state

European Social Model

Chapter in T.R. Reid "The United States of Europe: The New Superpower and the End of American Supremacy"

the us of europe

Story on The United States of Europe
Reid Interview on WHYY

The European Social Model
What is it? What does it consist of?

According to Reid, "an elaborate network of publicly funded, cradle-to-grave programs designed to protect everyone in Europe against the vicissitudes of contemporary life" (146).

But really, the ESM is more than just protection against the vicissitues of contemporary life (as in our "social safety net" idea)

Rather, what does it do?

Guarantees social rights

Makes good on a social contract between the state and citizens
state makes available health, education, housing, jobs, retirement, vacation, etc.

Citizens - their responsibility (to society, to fellow citizens, to each other) is to pay for these PUBLIC GOODS

Reid describes the ESM as "relentlessly egalitarian"
he means that everyone benefits, and enjoy the same responsibility to pay

Cradle-to-grave (literally)
1. Birth
one time payments to parents
paid parental leave (parent's salary) with right to return to position
2. Childhood
child allowances through age of 18
health care
education
parents with vacation time, time for family life
3. Working Age
employment rights
wages often set (agreed) by reps of labor, industry and government (corporatism)
maximum hour laws
Italy and France 35-hour work week
average of 4 - 5 weeks of paid vacation/holidays per year
(Britain 23 days; France 25 days; Sweden 30)

Hours worked per year:
US workers: 1,976
German and French = 400 hrs less (10 weeks of FT wk per year!)
British workers = 200 hrs less

Differences with US economy
1. higher unemployment (with more generous unemployment benefits)
average in early 21st Century 9% (compared to US 6%) (156)

2. slower rates of growth in GDP

According to Reid, is Europe's economy on the verge of collapse?

Why not? Why do businesses stay there?

What are the strengths of Europe's system? Success stories?

4. Health care
British system
"single payer" the National Health System
no fees at point of service
Reid's experiences

France, Italy have public insurance system
some fees at point of service, with reimbursement

Costs and results(158)

	Netherlands	France	Sweden	UK	US
Cost as % of GDP	8.5	9.4	8.0	6.7	13.0
% paid by govt	70	77	84	84	45
Male life expectancy	75	75	77	75	73

Problems with European health systems?

5. Retirement
pensions
health care

The Cost of the European Social Model
Click here for comparison of OECD countries and US in welfare state spending as percentage of GDP

Average for Europe (incl. southern, CE) = 23.2%
US = 14.8%

Taxes - income taxes, payroll deductions in some cases, property

but also Value-Added Taxes (VAT)

of between 17.5% in UK to 25% in Denmark

RIGHTS as part of the model

Not such political/civil rights but also social rights, such as right to free education through university level, right to housing, right to communicate in one's mother-tongue, etc.

Charter on the Fundemental Rights of the European Union

Movement for "Renewal of Social Democracy"
From the Left: Anthony Giddens, "The Third Way"
Director of the London School of Economics
Tony Blair’s “guru”
Accuses Blair and Clinton "of talking the talk, but not walking the walk, "warmed over neo-liberalism")

Old Left Orientations
Pervasive state involvement in social and economic life
State dominates over Civil Society
Collectivism
Keynesianism
Confined role for markets: the mixed or social economy
Full employment
Strong egalitarianism
Comprehensive welfare state, cradle to grave
*Linear modernization
*Low ecological consciousness
Internationalism
*Geo-political context: bipolar world

Movement for "Reform"/Dismantling of European Welfare State
From the Right: Thatcherism/Neo-Liberalism
Minimal government
Autonomous civil society
Market fundamentalism
Moral authoritarianism, plus strong economic individualism
Labour market clears like any other
Acceptance of inequality
Traditional nationalism
Welfare state as safety net
Linear modernization*
Low ecological consciousness*
Geo-political context: bipolar world*
Realist theory of international order

The Third Way
“an attempt to transcend both old-style social democracy and neo-liberalism” (26)

Third Way Values (64-68)
Equality
Protection of the vulnerable
Individual autonomy
No rights without responsibilities
No authority without democracy
Cosmopolitan pluralism
Philosophic conservatism

The Third Way Program for the State (77)
Devolution
Double democratization (upward and downward; increased authority and responsiveness of state)
Renewal of public sphere, transparency
Administrative efficiency
Direct democracy
Government as risk manager

The Third Way Program for Civil Society (79)
Government and Civil Society in Partnership
Community Renewal, Local Initiative
Involvement of Third Sector (explain)
Community-based crime prevention

The Context (Need for) The Third Way

Globalization: changing scales of economics

Individualism: post-modern societies becoming more individualistic
(rise of identity-based politics)

Left and right: what do these mean under current political conditions??

Giddens argues no one seriously challenges capitalism anymore; merely to what extent it should be regulated

Yet, many questions have no inherently left or right position – he suggests.

How should we deal with an ageing population?
How should we react to global warming??
Should we accept nuclear energy??
How far should work remain a central life value??
Should we favor devolution??
What should be the future of the EU?

Other insights from Giddens:
Political agency: economic and social change have undermined traditional forms and bases of political agency. What are the new forms and bases of political agency??

Ecological problems: have new, more pronounced salience. “sustainable development.”

How can these be integrated into democratic politics? (scale; process)