Euston Manifesto Blog

Shalom Lappin Responds yet again to Tristan Stubbs

Social Democracy and Neo-Liberalism

I am grateful to Tristan Stubbs for his interesting comments. He raises a number of important issues that bear further discussion.
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Aegis Trust: Survivors Say: Stop Genocide in Darfur

London: Rwandan, Bosnian and Holocaust survivors speak out, according to the Aegis Trust.
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Andy Pearmain responds to Adrian McMenamin

New Labour is the last gasp not the renewal of Labourism. It has achieved nothing more than some technical fixes—the kind of thing any modern state (including one led by post-Thatcher Tories) would have done. Those who wish to transform society need a new vehicle, argues Andy Pearmain.
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Tristan Stubbs responds again to Shalom Lappin

1. I charged Shalom Lappin with holding to a materialist explanation of Islamism for two reasons. Firstly, because the sentence in his article that mentions the "wrenching social and economic dislocations" brought about by globalisation comes just before his discussion of Islamism, I took this juxtaposition to be instructive. Secondly, Lappin put the rise of Islamism down to the failure of "secular nationalist groups" to "deliver… prosperity". Perhaps I set too much store by the previous juxtaposition, but this latter phrase seemed to confirm my conclusion.

I did, in fact, acknowledge Lappin's political explanation for the rise of Islamism—that it derived from the same groups' failure to deliver democracy. Nonetheless, I highlighted his materialist account for Islamism since I understood it to be emblematic of his broader approach. I considered it to be conceptually linked to his argument that democracy would take root in developing countries after a change in their material wealth. Returning to the original quote, however, I recognise that Lappin's conviction is that democratisation will accompany a rise in living standards, rather than result from this rise. Hence, the process of collective bargaining "will lead to the gradual convergence in living standards in the developing world and the West. It will also contribute to the democratization of the former'. I apologise for misinterpreting Lappin's argument in this way.

Yet my main point remains the same. I suggested that the reform of democratic and legal structures must take primary importance if economic development is to be truly sustainable. Although, as Lappin notes, "labour rights are human rights", human rights should always precede labour rights. Few citizens of developing countries are employed in industry, and an even smaller number are union members. What is key, therefore, is to protect the majority—those employed in subsistence agriculture, or in the black economy—from arbitrary taxation and expropriation by venal kleptocracies. This could well be possible with the kind of free trade agreements that Lappin proposes, which will oblige signatories to work towards strengthening democratic institutions.

2. I am grateful to Shalom Lappin for clarifying the centrality of trade unions to his scheme, and I find the example he gives of the Solidarity movement in Poland convincing. I believe, as I just mentioned, in the usefulness of free trade agreements in promoting democracy. But I don't have as much faith as Lappin in organised labour. When unions such as Solidarity fight oppression, their aims dovetail with those of the wider population. The right to vote, to assemble, to collective bargaining—all of these are noble causes of the labour movement which, as Lappin notes, have benefits for all. This is one of the reasons that free trade agreements should insist that states protect the right to organise trade unions.

However, once democratic market economies have been established, the aims of organised labour and those of the wider working class tend to diverge. Too often the narrow interests of traditional elites are traded for the equally narrow interests of union members. State protection of the French industrial and agricultural sectors has contributed to chronic unemployment in immigrant areas of the banlieues and exacerbated Third-World poverty.

And while we can promote human rights through free trade agreements, the same can't be said of social democracy. To insist that governments adopt a social democratic model is at best optimistic and at worst a call for the kind of doctrinal orthodoxy of which Lappin accuses me. We can endorse measures such as the European Working Time Directive to EU member states, but to do so on a wider scale, while desirable, may well prove impracticable. Indeed, even within the EU there is much discomfort over labour regulation. In countries such as Poland, memories of communism have influenced voters to elect parties with populist neoliberal platforms.

The social democratic response should therefore be to demonstrate the inadequacies of neoliberalism, and to argue for the desirability of full employment ahead of a minimal state (this shouldn't be too difficult—Poland's neoliberal model has created unemployment levels as high as twenty per cent). It was in pursuit of this goal that social democrats learned to accommodate themselves to liberalised markets—this was no "resigned embrace".

3. In his rejoinder, Lappin asks how the Third Way differs from traditional neoliberalism. Its emphasis on full employment is the first answer. The second lies in its advocacy of a welfare safety net for those cast aside by the globalised economy.

According to Lappin, the NHS is suffering from massive underinvestment, a result of the iniquitous neoliberal ideas that have informed British governments since the 1980s. Few would argue that the NHS is suffering, but to claim that this is the result of a lack of funding is patently untrue. Over the last nine years the Labour government has almost trebled pre-1997 investment, bringing funding in line with European levels. What is more, it has overseen the biggest ever redistribution of wealth to the poorest, lifted a quarter of children out of poverty, and introduced a minimum wage. And while proposed market reforms of public services may be worrying, they are by no means axiomatic for proponents of the Third Way.

Lappin's deconstruction of the Third Way highlights the acute social gap between the richest and poorest citizens of the United States. Yet a comparison between the British and American social models is somewhat specious. Though they share an attachment to liberalisation, in relative terms their welfare states are incomparable. A better contrast might be made with European economies. I mentioned France's troubles earlier; German unemployment, though improving, is running at eight per cent. Even the most successful social democratic party in the world, Sweden's SSDP, risks defeat by a centre-right coalition after being blamed for rising joblessness and burgeoning social inequality. The reason for these countries' difficulties? Their celebration of entrenched industrial interests precludes flexibility, a valuable currency in the globalised economy.

4. Both Shalom Lappin and I wish to adapt social democracy to the interconnected world, but have differing views as to how to achieve this. If we are to realise a progressive agenda for future global development, we must protect a culture of debate on the Left. This is why, in my response to Lappin's article, I called for a discussion of the Third Way rather than an ex ante dismissal.

I assume that when Lappin refers to the "tone" of my response he means to imply that it was overly polemical. The piece was adapted from a review of the Euston Manifesto launch that I produced for the Henry Jackson Society website. The text of Lappin's speech at that event was the same as "Towards a Renewal of Social Democracy". Although the political aims of the Manifesto—a commitment to liberal democracy, pluralism and tolerance—were restated by every speaker, the only mention we had of an economic programme was Lappin's. I found it odd that a spokesman for a project with the potential for support not only from the left, but from the broader political spectrum, should dismiss some of Euston's most instinctive colleagues (me included) as neoliberals. To be branded as such is as exasperating—and as imprecise—as it is for Eustonians to be labelled neoconservatives.

I therefore welcome the Social Democratic Futures project. After all, to paraphrase Shalom Lappin, free debate should come naturally to those who consider themselves "democrats and political liberals".

Tristan Stubbs is the Henry Jackson Society‘s Environment / Economy Section Director

American Liberalism and the Euston Manifesto

We are signers or supporters in the United States of the Euston Manifesto and its reassertion of liberal values.
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Tackling Social Exclusion By Extending Opportunity

In the 21st Century, opportunity is not just about income, but about power argues Pat McFadden, Parliamentary Secretary in the Cabinet Office, on the day the Government publishes “Reaching Out: An Action Plan on Social Exclusion”. He argues that far from being a sinister “big brother” policy, early intervention in the form of targeted child support is vital to enhance life chances and he sets out dividing lines between Labour and the Conservatives in the debate about the role of the voluntary sector in public services.

In 2006, few areas better illustrate the nature of the challenge facing us than social exclusion. A concern of the Labour Government since it was elected in 1997, the landscape of social exclusion has changed, in good part because of our actions.

Labour came into office determined to reduce unemployment, lift children and pensioners out of poverty and introduce a minimum wage to tackle poverty pay.

Many of us can remember the campaigns for low-paid workers like security guards earning little over £1 an hour and having to work horrendously long hours simply to make ends meet.

Since then, over 2 million more people have found jobs, incomes have risen by 2-3 percent a year in real terms, child poverty has been reduced by 800,000, pensioner poverty by around one million and a minimum wage has been introduced which helps those security guards and other workers like them who used to work for a pittance.

And these are reductions in relative poverty. They are based on a moving—and rising—poverty line of 60 percent of median incomes.

The Centre for Analysis of Social Exclusion at the LSE has said, "The package of support for low income working families with children is now one of the most generous in the world".

So the picture is much improved since 1997. But despite that progress, we all know there is still deep seated exclusion in some communities.

Some children are still born into families with profound problems including alcohol abuse, drug abuse and mental illness. Teenage pregnancy rates have fallen 11 percent to a 20 year low but are still the highest in Europe. Educational outcomes for Looked After Children are better than they were but only 11 percent of Looked After Children get 5 good GCSEs compared to 56 pecent among all children. And our system struggles to treat adults with multiple problems such as mental health problems and alcohol and drug addiction which can lead not only to chaotic lives for them but also have a harmful wider impact on local communities.

"Reaching Out"—today’s Action Plan—is about tackling this remaining entrenched social exclusion.

Last week my colleague Jim Murphy rightly argued that Labour had to remember it was a party not just of delivery but of great causes. The extension of opportunity to those cut off from it in the past is precisely such a cause.

And no longer is this just about resources. It is also about empowerment. It is about extending to the most excluded the kinds of chances, choices and power that the rest of society takes for granted.

That is one reason why issues of contestability and choice have risen up the political agenda. Having an alternative means of provision should things go wrong is not an end in itself. It is about power for the consumer of the service.

The Action Plan focuses on key groups where social exclusion is deep seated—young children born into vulnerable families, Looked After Children, teenage mothers and their children and adults with mental health and other problems sometimes leading to lives in chaos.

People don’t always fit into neat departmental boundaries and the Action Plan is clear that information and work have to be shared across service boundaries in order to make progress.

It draws heavily on UK and international research to expose how disadvantage at birth and in the very early years can lead to multiple problems for young people later in life. The Plan sets out how the children in the most disadvantaged 5 percent of families can be up to 100 times more likely to experience multiple problems at age 15 than the children of the most engaged and advantaged 50 percent of families.

Taking a life cycle approach it places a key emphasis on the importance of the very early years in children’s lives and proposals for greater intervention at an early stage.

It also shows that sometimes those who possibly need help most are the least likely to get it. For example, when it comes to health visitors, the likelihood of seeing one increases in line with income.

Drawing on international evidence about effective programmes the Plan proposes demonstration projects based on the Nurse Family Partnership model where midwives and health visitors would maintain sustained support for vulnerable families from pre-birth right through the first two years of a child’s life. This kind of programme has been evaluated to show positive results such as improved health, safer home environments, fewer cases of child neglect and fewer problems later in life.

Yet it is this kind of targeted and enabling early intervention—designed to ensure support is available so that the misery and pain that deep-seated social exclusion can cause to individuals, families and communities is eroded—which has been caricatured in the run up to the publication of the Plan.

The allegation, mainly from the right but also from some on the left, is that all this is "nanny state", that it implies "foetal ASBOs" and that it is a "Big Brother" form of interference in children’s lives.

It is absolutely right that we should discuss the proper boundaries of the state’s role in this area. After all we could simply abandon the field and leave well alone. But if we are serious about extending opportunity, why wait until the odds are already stacked against a child? Early support of the kind we are talking about could make a major difference to children’s life chances.

The plan is also clear about the need for multi agency working. Although it bases some of its interventions on the skills of public professionals such as midwives and health visitors, it also reaches out to the voluntary sector, to local communities and to those suffering from social exclusion as all having a part to play in tackling social exclusion.

Government can’t do it all alone. It certainly has a job to do in ensuring opportunity is there but people also have a responsibility to make the most of those opportunities.

There is a crucial difference between the parties in the debate about the roles of the state and the voluntary sector in this field. The Conservatives have made much of their view that there should be a greater role for the voluntary sector in this area and less of a role for the state.

Labour, certainly New Labour, is pragmatic about who delivers services. Public service is valued but the emphasis is on outcomes. We know that as well as the many public servants who do a great job, organisations like NCH with family support projects or the Revolving Doors charity with adults leading chaotic lives can also be highly effective in delivering services and we also want to tap in to the energy that exist in local communities.

This emphasis on outcomes can lead to tensions and sometimes conflict with some public providers when services are opened up to new providers. However, what is not at issue for Labour is the state’s overall responsibility for trying to secure the desired result.

The right on the other hand see the voluntary sector as replacing the state in terms of responsibility, not just delivery. Their vision is a means of withdrawal of state responsibility in major areas of public life. Beneath the PR, this is David Cameron’s agenda and the agenda of his Social Justice Commission.

So on this field of opportunity, there is an important difference between the ambition of the left and abdication by the right. On the one hand New Labour seeks to expand opportunity and believes the state has a responsibility to do so, though is open minded about who does some of the service delivery. On the other, the right is seeking to withdraw under a veil of statements of support for the voluntary sector.

The Action Plan published today sets out a renewed focus for Labour on some of the most challenging areas of public policy. It is a statement of commitment to expanding opportunity to those for whom that is often a distant reality. It makes the case for intervention to make a difference when it matters most in the early years of the lives of the most vulnerable. And it does so on the basis of a crucial difference between left and right on the boundaries of what government can usefully do to improve the lives of the least advantaged.

If you want to email me with responses to this article you can do so at mcfaddenp@parliament.uk.

To post a response at Euston contact Alanjohnsonsdf@aol.com.

Generation 9/11

Generation 9/11 wants to marry national security with progressive, internationalist values, argue US Democrats Rachel Kleinfeld and Matthew Spence. What are the lessons for European social democrats?
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Free Politics won’t necessarily follow free markets in China

How the West handles the emerging Chinese superpower will define foreign relations in the 21st century, argues Greg Pope MP
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Global Day For Darfur

Thank you to those who organised, spoke at, and attended the Euston Manifesto meeting about Darfur. Despite all the terrible news, there is something you can do. On September 17 people around the world will take part in the Global Day for Darfur to show world-wide support for the Darfuri people and to put pressure on our Governments to protect the civilians.

There is further information on the Aegis Trust and Amnesty sites.

Kingston Symposium: New Labour in Power: Ten Years On

te>. As we approach the tenth anniversary of the publication of the book and the election of the Labour government, many of the original contributors are gathering with other academics and commentators to revisit their first thoughts on the Labour government.

The symposium will be in Town House 102, Kingston University, Penrhyn Road, Kingston upon Thames on 11th September 2006 from 10-6pm

Speakers will include: Vernon Bogdanor (Oxford University), Andrew Blake (UEL), Sarah Childs (Bristol University), Nick Ellison (Durham University), David Walker (The Guardian), Rokhsana Fiaz (Change Institute), Simon Woolley (Operation Black Vote), Eric Shaw (Stirling University), Matt Beech (York University), Anna Showstack-Sassoon (Birkbeck College), Brian Brivati (Kingston University/Euston Manifesto Group), Alan Johnson (Edge Hill College/Social Democratic Futures), Rupa Huq (Kingston University) and Tim Bale (Sussex University)

Panels will cover Security and Foreign Policy, Domestic Policy, Representation, Governance: local, regional and constitutional policy and Party-Government relations.

Audience places are limited. Conference costs £15 (£10 concessions) for a booking form and to reserve a place please email: Dr Rupa Huq.