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Home , Godesberg Program, Third Way

THOMAS MEYER The at the Crossroads

he term Third Way in its most recent use was be a meaningful and highly informative endeavour Tcoined in 1992 by a group of policy consultants to renarrate the whole history of as a to and taken over by and sequence of ever renewed steps towards actualised his intellectual aids with new emphasis half a forms of syntheses between and social- decade later in order to brand a new centre-left ism prompted either by changes in social, eco- approach to what they consider the inevitable new nomic and political reality itself or the perception challenges of economic globalisation. It is by its of them by the mainstream socialists – and the authors understood as the opening move for a new constant rejection of such a synthesis by dogmatic wave of which aims at a new synthesis socialists and communists. between traditional social and libera- Revisionist socialism as contrary to the dogma- lism in some of the key fields of social reform such tic version of , from its very outset, always as governance, state, education, political has seen itself as an open process of learning from culture and job creation in a new economy. The reality, from the results of its own endeavours in very brand-name and the new direction of political the different fields of society, but abiding without thinking for which it stands have proved highly compromise by the basic values of , justice controversial in the short time since they have and as the unchangeable guidelines for entered the political arena. its reform programmes. Since the beginning of the 20th century, in the eyes of mainstream revisionist socialists it was a truism that there is a substantial A Renewed Synthesis Between Socialism and difference between the basic values of socialism with its overall objectives and the actual means and tools of social change, which could When the first wave of revisionism in the history of bring society closer towards them. Even Karl socialism occured a few years before the turn of Kautsky, a proponent of democratic marxism in the new century, who had been German , as early as 1919 in an its chief promoter declared it to be in essence a argument with Lenin and his idea of synthesis between the socialist heritage and libera- put this most important difference in unambi- lism. This interpretation was accurate in three guous terms. We are, he said, in favour of the different aspects: firstly, the revisionist brand of socialisation of the , because socialism – later called or we are convinced that they are the best means to social democracy – advanced an unambiguous create a society of equal . If someone were acceptance of as the political to convince us tomorrow that this is not the case, framework for each further step of social reform. we would have to discard the idea of socialisation Secondly, the liberal principle of openness, plural- without reluctance if we want to stay firm with our ism, provisionality and tolerance was applied to genuine objectives and basic values. 1 In this sense socialism itself; and thirdly, the liberal concepts the political of social democracy had of free and private ownership of the means developed from dogmatism to guided prag- of production were reconsidered and to a certain matism. extent – within a dense framework of social control and responsibility – adapted to the basic values and 1. Cf. K. Kautsky: Die Diktatur des Proletariats, Wien overall objectives of democratic socialism. It would 1918. S. 4 f.

294 Meyer, The Third Way at the Crossroads IPG 3/99 The of the SPD in 1959 both in order to develop a realistic strategy to gain makes this difference very clear. There are, how- the objectives of socialism in a world where forces ever, some organisational and institutional means like communism, and big prevailed. which are so directly and inseparably linked with After World War II, democratic socialism in the basic values that they can be considered as just declared itself to be a third way, the almost as basic and constant as the basic values better way between the two extremes of untamed themselves, such as democracy, pluralism, human and dogmatic communism. In the years , social security and workers participation. In after World War II, the term was frequently made the field of economy there has been constant strife use of, meant to find an orientation between the within the socialist movement in almost every two big emerging superpowers. In 1968, during single Western nation concerning the social limits the short Spring of Prague, Ota Sik and others to , the forms of those limits and developed the project of a the limits to and its forms. It was, beyond communist central planning and private however, always clear that market and private pro- property dominated market systems, and called perty are not basic values in themselves but only, it in their turn »third way«. The term was used within a certain framework of participation and generally within the tradition of democratic socia- social responsibility, appropriate means which can lism, however, with time, even extreme adversaries serve the ends of social democracy in a better way such as Franco fascism in Spain found the brand- than the socialisation of the means of production name suitable. and central state planning. Most recently, Tony Blair, following Clinton It is thus neither a surprise nor a deviation from and his consultants, forwarded the idea to reani- the traditions of revisionist mainstream socialism mate the term the third way in order to designate in Europe, when the key advocates of the Third endeavours to shape a new synthesis between Way argue that in an era of globalisation, it is traditional social democracy and a time now for a new synthesis between social which for too long, though not without a ratio- democracy and liberalism, or even neo-liberalism. nale, has dominated the discussions and to a cer- With respect to the philosophy of revisionist social tain degree also the policies of most western coun- democracy there cannot be anything wrong with tries during the last two decades. Strategically the such an endeavour. The question, however, is term is meant to bring social democratic thinking which synthesis of social democracy and liberalism back into the offensive by adopting some of the in the world of today will serve the ends of social most attractive ideas of neoliberalism. Those who democracy in the most appropriate manner. Social are picking up the term and taking on this chal- democracy could not survive in a highly complex lenge spans from the think tanks associated with and changing world if it rejected the ideas of prag- the Clinton administration in Washington, to matism with respect to the means of its project those designing the intellectual message of Blair’s and of permanent revisionism with respect to to some politicians and intellectuals on the theories and hypotheses which guide its interpreta- continent who have started to join the project, in tion of the present world and its selection of the , the label The New Middle – Die neue instruments and means of its policies. Mitte – has been declared by some as the full equi- valent to the Third Way. Thus, it cannot be surprising that the project is Third Ways yet rather vague and, as Tony Blair sees it, so far merely defined through some basic values, utterly The term »Third Way« is evidently without a well- a resolution to be pragmatic in order to find defined meaning. Even in the appropriate means to implement them in the it was used in a variety of different situations for a world of today. This is coupled with the conviction variety of different purposes. The Austro-Marxists that some of the ideals of neoliberalism concerning made use of it between the wars in order to globalisation, the dominating roles of markets and strengthen the endeavours to find a way between the need for rethinking governance and renovating Bolshevism and Socialism combining the best of the will have to play a prominent

IPG 3/99 Meyer, The Third Way at the Crossroads 295 role in this new pragmatic mixture of means and media, the discipline of the party and all the actors instruments which constitute the basic values in beneath the strategic apex have not only created a the world of today. 2 There can be no doubt that new way to conduct politics but also a new type of this effort in itself is legitimate and necessary, given relationship between the social , the new economic, social and political problems its members, its leadership and its relation with which emerge in the wake of globalisation and the society as a whole. Therefore, it cannot be seen as dissolution of the traditional socialist milieus in all a change in marketing and communication only, it democratic societies of today. The issue, however, is rather a substantially new type of defining the is which synthesis best combines the basic values of role of the party in the process of formulating and social democracy with the functional requirements implementing policies – it amounts to a new type of today. of media-democracy. In Europe the emerging discussion on the The third layer of the Blair is con- Third Way revolves around the Tony Blair success cerned with the closer issues of what is covered story and its foundations. Confusion has been by the label »Third Way«: the adoption of many created by a lack of proper distinction between substantial parts of neo-liberalism into the project the different layers and dimensions in Blair’s own of social democracy. In the particular situation of genuine project which serves as a paradigm for Great Britain, where a comparatively radical type what the new third way could or should be. In an of neoliberalism has shaped the country during amazingly short span of time Blair has pushed almost two decades, the courage, the resolution through a three-layered revolution in the British and maybe even the electoral necessity to go Labour Party which until then had been the unprecedentedly far in that direction seem to be embodiment of traditionalism amongst the various unique. This is why the Blair revolution and its European social democratic parties. transferability to other countries needs and deser- The first layer of the Blair revolution was the ves thorough discussion. arrival at a Godesberg type of social democracy in Given the scope and the depth of the Blair which traditional ideas of the socialisation of the revolution with respect to all three discernable means of production are replaced by commitment layers, Blair’s claim to having created »New La- to basic values and the party programme is opened bour« with a new political identity clearly and up to pragmatic ideas about the role of markets, demonstratively distinguished from »old Labour« private property and the state in the economic is fully justified. process. In the British context, this was a major Since the foundation of the First Socialist Inter- achievement which paved the way for regaining national in 1864, it has always been the hope of the majority acceptance and an innovative and offen- democratic Left to organise a worldwide coopera- sive role for the Labour Party in the current poli- tion of the individual national forces which repre- tical arena. sented it and to create sufficient convergence at Secondly, this breakthrough towards Godes- the programmatic level with respect to the key berg was accompanied by a very radical type of issues. It is therefore very pertinent to start, in a Clintonisation of the political communication on process of globalisation, a worldwide discourse on the part of the strategic apex of the Labour Party a Third Way for social democracy whatever the which subordinated everything else including the differences in the starting positions and the tradi- party discourse, the role of the party and even the tions of the various social democratic parties and parliamentary Labour group under the rule of the groups might be. It is worthwhile to learn from perceived necessities of successful media commu- each other in order to come to a new under- nication of the ’s image and his sym- standing of what social democracy means in the bolic project. The term »designer socialism« as world today, to regain the offensive position in it has been coined by critics of this dimension of today’s debates. Such an understanding could the Blair revolution may be an exaggeration, yet it possibly provide the centre-left parties with com- covers a good deal of this innovation. The image of the leader hero, the selection of the issues and 2. T. Blair: The Third Way. New Politics for the New the design of the way they are presented to the Century. Fabian Pamphlet 588. London 1998.

296 Meyer, The Third Way at the Crossroads IPG 3/99 mon ground for coordinated action in order to makes a case for a strong and self-confident cope politically with the challenges of globalisa- civil society enshrining rights and responsibili- tion. This above all seems to be the opportunity ties with the being its partner, and the promise of the Third Way discourse. stresses the necessity to accept economic globa- lisation and the rule of markets as a hard fact of life to which value-based and effective policies Basic Features of the Blair Project have to adapt. The policy guidelines for the project which repre- The main feature of Blair’s version of the Third sent steps beyond the Godesberg type of social Way is its foundation on basic values. Such values democracy, which has been prevailing in Europe automatically entail certain structural and institu- during the last two or three decades, seem to be tional commitments, such as democracy, human a neo-liberal approach to macroeconomics, rights, pluralism and the like. With respect to the supply side economic policies, precise details of the social and economic order, unconditional acceptance of in and also with respect to the shape of economic, goods and capital markets, social and educational policies they are open for welfare state reforms with the aim of maximising different options but the choice between various employability rather than guaranteeing employ- options always has to be made in the light of these ment or social security as citizens rights, basic values. The general approach of such a poli- a vague commitment to sustainable develop- tical concept is that of a principled pragmatism: ment. unconditional validity of the basic values com- In addition, Blair is devoted to the decentralisation bined with conditional choice between policy of the UK’s political system, to a reform of the alternatives. This is basically the Godesberg country’s educational system and to a more con- approach to social democratic thinking. It is a structive participation of Britain in the European gross misunderstanding of the very concept itself Union. 4 when asked: »The third way to what? For a broader discussion of the politics of the We need some direction.«3 It is clear that in such a Third Way within a global perspective, one has concept the basic values are the objective towards to distinguish between those features of the new which the process should be driven, and they con- concept which are obviously due to the particular stitute its direction. Such a concept is a meaningful British context and those which seem to be trans- orientation for action as long as the basic values ferable to other societies. The with themselves are defined precisely enough to deliver which Blair is ready to renew the traditional social effective yardsticks for pragmatic . democratic project is of course due to the In the framework of these basic values, it is thorough of the economy, including Blair’s hope that at the policy level traditional the labour market, which the Thatcher regime had contradictions such as patriotism and internatio- brought about. The way in which the concept is nalism, rights and responsibilities, the promotion designed and epitomised in Blair’s own personal of enterprise and the attack on poverty and dis- performances has much to do with the role of the crimination will be overcome. There is nothing mass media and the attitudinal propensities of the wrong with such an approach, and Blair himself new middle classes in the UK. The welfare consen- frankly confesses that it will need a decade or more sus which is still intact in most of the continental to fill this framework with sufficient details to and Scandinavian countries had been destroyed by make it a working project of the Centre Left for Margaret Thatcher to such an extent that it seems the 21st century. At a more down to earth level, no longer a restriction for Blair’s own endeavours. Blair declares the main meaning of equal worth as inclusion, i.e. an opportunity for each individual 3. T. Judt: The Third Way to What? We Need Some to participate in the economic and social system, Direction. 4. Cf. P. Robinson: Britain’s Labour Government: a favours partnership between government and third way for social democracy? Paper: Institute for , Public Policy Research, London 1998.

IPG 3/99 Meyer, The Third Way at the Crossroads 297 The essence of the new concept seems to be a Third Way Issues strategy which aims at bringing about inclusion, opportunities for all (not !), and Globalisation employment not by way of structural reforms and macro-economic policies but of cultural revolution The starting point for both Clinton’s and Blair’s and related transformations of the welfare state version of Third Way renewal is the acceptance of which aim at better adjusting people to economic economic globalisation as a hard fact with all its and social structures as they are determined by the consequences for ecomomic growth in a highly present stage of globalisation. This shift to predo- competitive world market and the type of jobs minantly cultural strategies is symbolised in such which it is going to make available. Globalisation, terms as partnership between government and bu- however, is a highly ambiguous term. It is multi- siness, and government and society, employability dimensional in its scope and ambivalent in its and opportunities for all. The target is substantial meaning. Evidently, communication, the effects changes in attitudes and modes of action rather of ecological destruction, diseases, cultural en- than remodelling structures. Partnership means, counters and to a certain degree migration are whatever can be achieved has to be done through transgressing political frontiers whether the indivi- negotiation instead of state sovereignty within the dual nations like it or not. This process of trans- framework of the established structures. Inclusion nationalisation is widening increasingly to a glo- means that everybody should be given an oppor- bal scale. The financial markets have become tunity to get included in economic and social life thoroughly globalised already. This is however not in some way at whatever level and under whatever the same thing as comprehensive economic globa- conditions. That the rest is up to individual fitness, lisation. The markets for , and and employability means the welfare state can help particularly for labour, are still very far from being people to acquire new work qualifications but ulti- global, they are rather selectively transnational. mately it is the responsibility of the people them- There is not yet one single worldwide marketplace selves to integrate into economic and social life. in which all economic unities compete with each Often Blair and other advocates of this parti- other. Large parts of the national economies, dif- cular version of Third Way thinking employ the ferent from country to country, are not involved in term of a culture of which transnational markets, and large parts of the trans- should become the attitude of each individual in nationalised markets are rather regionalised than the emerging societies. The cultural revolution globalised. In the European Union for instance, which is the objective of this strategy aims at a more than 80 % of the transnational trade of the redefinition of the role of government and the member countries is taking place within its own responsibilities of the individual. The final risks of limits. the labour markets are transferred to the individual The undifferentiated neoliberal use of the glo- with the state being only kind of an aide (welfare balisation argument is to a high degree ideological, to work), whereas in the classical concept of social mainly designed to delegitimise labour demands, democracy the individual was entitled to social macro-economics and the claim of all political security as a citizen’s right due to a social democra- responsibility for the outcome of the economy, tic assessment that the very dynamics of the market rather than depicting the new reality accurately. are at default. This is a substantial take-over of cul- Thus it is one of the crucial watersheds between tural positions of neoliberalism and neoliberal and social democratic politics how the imply the downsizing of governmental structures term globalisation is defined and which conse- and responsibilities. The change is highly conse- quences are derived from it. For a critical use of quential with respect to economic policies, welfare the argument which takes into consideration its policies and the symbolic position of social de- conditions and limitations, two consequences are mocratic parties in the political arena of present crucial. The first is that the real shape and amount day societies. Some of the issues implied are very of globalisation does not render macro-economic controversial indeed. policies and political responsibility for the entire economy completely obsolete. The second is that

298 Meyer, The Third Way at the Crossroads IPG 3/99 much of the political influence which has been lost case, if a government in a neo-liberal spirit would to globalisation can be regained and reestablished simply shed more and more of its political respon- at a regional level, an argument which is particu- sibilities and leave it simply to the individuals to larly valid for the European Union. In addition, cope with the consequences of market dynamics. concepts to develop more comprehensive and ef- Simple privatisation of erstwhile political respon- fective transnational and even global regimes to sibilities risks re-establishing the 19th century regulate the global economy are no mere illusions. situation where uncontrolled private powers domi- GATT and the like show that there is scope for poli- nated the lives and the opportunities of the large tical framework setting, which possibly is subject majority of the people, which ultimately caused to further amplification if only there is the political massive political alienation and social unrest. will to do so. The second dimension of the transfer of poli- Even for a renewed social democratic project tical functions onto civil society is a cultural one, there is no need to discard the concepts of macro- based on ongoing processes and declared needs to economics, market regulation and political frame- rebalance the individual’s sense of rights and obli- work-setting altogether. There is scope for com- gations in modern societies. This is the dimension pensating the loss of political effectiveness at the stressed by . A reinforcement of national level by transnational cooperation. the individual’s sense of obligation can regularly strengthen the citizens’ propensity to see first whether they can themselves jointly solve pro- Partnership of Government and Society blems which emerge in their daily life sphere by spontaneous cooperation, and only inasmuch as Rethinking or even »re-inventing« governance this is not possible, delegate it for effective resolu- within the respective political roles of government tion to the political system. In this dimension, a and society is one of the central impulses of the new division of labour between state and society is Third Way. This concept has two dimensions. The not in the first instance a question of simply discar- first is a functional one; it stems from the experi- ding erstwhile state functions and leaving their ful- ence that in highly complex modern societies it is fillment to the discretion of private actors. It is rat- increasingly difficult and even disfunctional to try her about rendering a good deal of state interven- to steer the development of societies from a stra- tion superfluous as the job is done in society itself tegical political apex which is placed at the top on a voluntary basis. of the pyramid of society and unable to oversee Even in a country like Germany, more than a to a sufficient extent its performances, problems quarter of the population has been engaged in so- and functions. The idea has become prominent cial self-help initiatives for a long time. The chal- that modern governance requires new forms of lenge today is to extend the readiness for such en- cooperation between the political system and gagements to new problem areas and to foster the civil society, in other words a new division of related spirit of community by public strategies labour between state and social actors. Increas- such as discourse, convincing examples, partner- ingly government becomes a partner of societal ships and the like. The concept and the practice of agents, acting as a broker, facilitating, inspiring communitarianism can well supplement social de- and monitoring. This devolution of power to a mocratic philosophy and politics but only if it is certain extent seems to be a functional necessity not meant as a mere strategy of legitimising the re- in today’s complex post-industrial societies. privatisation of public responsibilities. The diffe- As long as the monitoring function of the poli- rence between the neoliberal concept of simple re- tical system remains intact and enables it to take up privatisation of public policy obligations and the its responsibility for the society and its individuals social democratic concept of politicisation of civil along the lines of shared basic values wherever the society in order to take on new responsibilities is a networks of civil society fail, this approach to poli- crucial one, and it must be made very clear not tical power devolution is an alternative to priva- only on a theoretical level but in the concrete tisation and fosters democratisation and societal shape of practical projects and the very concepts of autonomy. However, the opposite would be the government responsibility. Those political jobs

IPG 3/99 Meyer, The Third Way at the Crossroads 299 which are not done in society itself by voluntary traditional welfare state while attacking neoliberal actors will still have to rest with government res- irresponsibility. Re-engineering the old welfare ponsibility. In order to cope with such new chal- state structures is inevitable, but only insofar as lenges governance needs imaginative refashioning. this helps to make it sustainable. This holds true for all the classical pillars of the welfare state. With respect to old age pension, more scope for choice Welfare state is needed. The individual should decide how much of his income he would like to save now in order There is no doubt that today social democrats face to be able to spend it later, but a bottom line the necessity of restructuring some key parts of the which guarantees a dignified life after retirement welfare state. There are changes within the society should be maintained. Unemployment benefits which make appropriate changes in welfare state should be conditioned on the acceptance of job structures unavoidable. To mention just the most offers. Besides, they should be faded out in such a consequential ones: way as to leave a reasonable increase in income for The level of medical technology is expanding those who pick up low-wage jobs. constantly and so are, as an unavoidable conse- All this can and must be done and there are quence, the costs of health-care systems. A many ways to achieve it. Pragmatism, creativity system which entitles each individual to the full and a spirit of innovation are required. The mes- scale of medical treatment as indicated by his sage of social democracy, however, must be a rene- diseases will constantly raise the portion of wal of the idea that each citizen is entitled to income spent for health, which seems unaf- a dignified standard of living when all his own fordable already in the not so long run. efforts have failed. The guarantee of a decent life is The ratio of working-age population to old-age not dependent on economic merit but a human population is constantly decreasing. This makes right. It might be more necessary than before that new formulas for a sustainable general pension the individual can prove that he has undertaken system mandatory. everything possible to earn his own living, but in In some welfare states unemployment insurance case of failure, he has a right to social solidarity and has created a particular unemployment trap by he has a right that the blame for market failures are taxing 100 per cent or more of low-wage income not put on his shoulders alone, so that in addition away. New ways of relating the welfare system to poverty and insecurity he would be stigmatised and the labour market are needed. with failure, remorse and blame. Even though the welfare state is badly in need of For all these reasons the Third Way will prove reform this should be done in such a manner as a meaningful concept for the renewal of social to preserve the basic objectives for which it has democracy only to the degree to which it offers been invented and designed as a part of the social meaningful welfare state reforms without discard- democratic project more than a century ago. The ing the guarantee of social security. Otherwise it neoliberal remedy is straightforward: reduce the would not only damage the public identity of welfare state and resign vis-à-vis the power and social democracy and deny its confession of basic the wisdom of the market. This will, so the neo- values, but contribute to social disintegration. liberals suggest, immediately ease the burden on Eventually social democratic parties would have to public budgets and sooner or later adapt workers’ pay the political price for it. Two adversaries of expectations and attitudes to the hard facts of the social democracy would be the main winners: labour market. As neoliberal thinking considers those neoliberals who are even more consequent the market both an unparalleled mechanism of than a half-way neoliberal social democracy and rational decision-making and a basic value, the those right-wing forces which promise a more social costs of such a strategy are neglected in communitarian society and full acknowledgment theory and tolerated in practice. for those who suffer social exclusion. Social de- Third Way thinking is definitely right in its mocratic efforts to reshape the welfare state have basic assumption that it would be irresponsible to honour the fact that there are not only limits of and stupid to take refuge in merely defending the economic globalisation to the welfare state but

300 Meyer, The Third Way at the Crossroads IPG 3/99 also welfare state limits to globalisation. 5 Once this limited support there is no reliable social secu- these are violated, increasing political rity which they are entitled to, whatever the out- against is to be expected. come of their efforts in the labour market in the Therefore, a renewed social democratic project last instance will be. Individuals would have to must abide by a concept not just of opportunities accept almost unlimited degrees of economic and for all, but of social justice which implies the social flexibility. guarantee of a minimum standard of material well- Richard Senett recently has depicted some being. Of course, such a guarantee implies the aspects of such a transformation towards a new individual’s obligation to seize every opportunity capitalist culture and made a case for social limits offered to him by the markets or the society to to flexibility lest modern capitalist economies make his own living. Thus, employability may generate a corrosion of character, generalized be one of the useful objectives for welfare state uncertainty, fear and social instability on a large reform, but not the sufficient condition for a scale. 7 The social limits to flexibility concern both renewed social democratic project as long as there the higher and the lower strata of society. Both are not enough jobs available for everybody. have to be aware that, for a variety of reasons, almost every job can come to a sudden end and they may have to accept ongoing degradation Flexible Man and Basic Security in job quality and payment. Even if they can ex- pect to manage a continuous work biography, they One of the most disputed features in the Third will have to be prepared for ten or twelve changes Way project as it is has been offered by Tony Blair of their jobs and even their living places in a life- is its concept of a general culture of entrepreneur- time. Thus, their lives become more and more ship for all members of modern societies. It is incalculable, longterm commitment in communi- meant to do away with the widespread attitude ties, with friends, neighbours and the like becomes of entitlement, and, consequentially, allow for a an improbable feature of their lives. major increase in labor market flexibility, welfare The label »flexibility« taken at its surface value state reduction and a related increase in self-deter- has overall positive connotations. It makes, how- mined voluntary social activities. The main thrust ever, a very big difference if somebody is in a of the concepts seems to be towards overcoming financially secure socio-economic position and the deeply rooted welfare consensus which is takes additional risks in order to gain additional prevalent in most European societies. Some of incomes or if flexibility at the lower end of the the distinguished promoters of the Third Way pro- labour market is tantamount to the threat of being ject such as Blair, Giddens, and in Germany Bodo pushed into poverty, dependence and deprivation, Hombach, have repeatedly declared that the indi- and being forced to accept any working or life vidual independent of the degree of education, job condition which changing market fortunes have in qualification, or social position must start to consi- store for him or her. Enforced flexibility of this der him or herself as an entrepreneur, fully sort creates frustration, instability, uncertainty and responsible for his own fate in the world of mar- anxiety. Flexibility is, thus, a far cry away from kets. 6 Everybody should develop an awareness meaning the same thing to the successful and to that the risks of the labour market are in the last the unsuccessful. instance one’s own risks and not failures created by The comprehensive message of classical social default structures of society which entitle the indi- democracy always has been that there is and must vidual to strong social guarantees. Such a major cultural change, which amounts to adopting a sub- 5. Cf. Rieger,E. / Leibfried, S.: Welfare State Limits to stantial portion of neoliberal culture would have Globalisation, in: Politics & Society. Vol. 26, N. 3, Sept. serious consequences at two levels. At the struc- 1998. tural level, it would reduce the welfare state sub- 6. A. Giddens: The Third Way. The Renewal of Social sidies to support for employability. At the socio- Democracy. Cambridge 1998; B. Hombach: Aufbruch. Die Politik der Neuen Mitte. München 1998. psychological level, the individuals at the lower 7. R. Sennett: The Corrosion of Character. New York strata of society would get the feeling, that beyond 1998.

IPG 3/99 Meyer, The Third Way at the Crossroads 301 be a guarantee of a decent living for each indivi- Alternatives at the Crossroads dual, irrespective of his or her economic fortunes, because the risks of the labour market are mainly For the first time, the Third Way discourse opens created by the way markets function and not by up the opportunity for a world-wide political dia- individual failure. The concept of a generalised logue between the centre-left forces as, due to glo- entrepreneurial culture, as it has been conceived balisation, they share more challenges, problems thus far, seems to put an end to the very founda- and options than ever before. Many of them are tions of this social democratic philosophy. Inas- also increasingly aware that new forms of trans- much as this consequence is intentionally taken national coordination of action will be one of the into account by the authors of the project, three conditions for effective problem resolution in a arguments must be forwarded: global era. It is, however, not surprising that the Firstly, such a consequence would definitely exact shape of social democratic renewal varies run counter to the basic values of social democracy from country to country according to the different which even in the concept of the Third Way socio-cultural traditions of the individual societies, remain the undisputed basis for renewal and the electoral competitors in the political arena and social change. However the basic values of social the relative strength of the centre-left forces. Thus democracy might be defined in varying social and far three distinguishable paths on the Third Way cultural contexts, they all demand solidarity to have made their appearance. They range from a ensure the dignity of all citizens independent of radical position which adopts substantial portions their economic performance. This is exactly what of present-day liberalism to a moderate position the classical term »social justice« means. This stan- with a much more careful attitude to reconsider dard has to mark the bottom line of social security the role of markets and individual responsibilities. as long as the social democratic basic values remain Ideal-typically, the of the US in force. There is of course a good deal of flexibi- represent the radical approach on the Third Way lity in interpreting this norm, there are also clear- while most of the Continental European Social cut limits to such flexibility. Democratic parties pursue the moderate path and Secondly, excessive demands for flexibility occupies the middle lane. which induce a general feeling of insecurity and With respect to almost all of the key concepts the loss of the individuals’ command over their which form the building blocks of a renewed social lives risks driving many people into the arms of democratic project, some consequential alternatives rightwing extremists who pretend to offer security, are surfacing, though within a shared framework certainty of orientation and social protection. of some basic commonalities. They require and Thirdly, such a strategy inevitably would blur deserve a careful political discourse amongst those the political demarcation lines between a however who want to promote a successful and sustainable renewed Social Democracy and Neoliberalism renewal of social democracy but they also allow for and consequentially worsen its electoral oppor- some scope for remaining variations. 8 tunities. The ideal-typical positions and their different Thus, the political message both as a strategic approaches to the individual issues of the Third policy guideline and as symbolic identity of a rene- Way discourse can be seen from table 1. wed Social Democracy has to be flexibility cum social security. The cultural renewal as necessitated by social modernisation and economic globalisa- Basic Values, Political Cultures and Human Needs tion should aim at a new culture of responsibility, creating a new balance of the individual’s rights As outlined before, there are good reasons for a and responsibilities, rather than at a generalised general reappraisal of the political projects of attitude of enterpreneurship.

8. Cf. The individual contributions, in: R. Cuperus / J. Kandel: Transformation in Progress: Social Demo- cratic Think Tanks Explore the Magical return of Social Democracy in a Liberal Era. Amsterdam 1998.

302 Meyer, The Third Way at the Crossroads IPG 3/99 Table 1: The Range of Third Way Positions

Concept Moderate position Radical position

Basic value Justice Opportunity for all Policy culture Flexibility plus basic security Spirit of entrepreneurship Economic globalisation to be politically shaped to be accepted Economic policy Macro-economic regulation, Supply-side side Government vis-à-vis business Sovereign plus broker Partner Government vis-à-vis society Accent on goverment respon- Accent on society’s duties sibilities Communitarianism Supplementary policy Moral campaign Welfare state Re-engineering for basic security Activating state for employability (citizen rights) Modernisation Multi-dimensional concept Economic rationalisation (economic, cultural, social) Ecology Substantial economic role Vague commitment Role of party Crucial for social discourse plus Nation first, marginalised party legitimisation Strategy Structural changes, deliberative Cultural campaign, media-staged discourse communication

Social Democratic politics in an era of globalisa- electoral losses in favour of liberal and right tion. As earlier in history it may again be conceived wing extremist parties. in terms of a new synthesis between the ori- These risks, evidently, delineate the outer limits for ginal theories of democratic socialism and liberal- change. ism. In such a new synthesis, whatever its shape It is most probable that in many of the highly in different countries will be, the basic values of developed capitalist up to a quarter of social democracy must remain visible and effective the electorate, as exemplified in Austria and even though there might be substantial changes in , might consider the offers of rightwing the advocated policies. Amongst those basic values, and extremism as the only hope for an social security as a citizen’s right where no accep- acceptable life in a world of almost unlimited flex- table jobs can be offered by the market is the most ibility to which social democracy, if it followed outstanding one, which is by no means dispensable the radical lines of Third Way renewal, would have as long as the term social democratic in contrast to to offer no credible alternative. It is not sure how (neo-)liberal can rightfully claim to make any far a society like the American one could go in that sense. Once this value is discarded the very idea direction. But history and present-day experience of a social democratic project would in substance suggest that most of the European societies would disappear from the political arena whatever labels soon fall prey to increasing influence of right-wing would be offered. In those European countries populism. which share a long tradition of welfare consensus At the present stage of development of modern and developed a related political programme, a societies and their pressure towards unprecedented strong dose of neoliberal »medicine« would most degrees of flexibility in all realms of social life, it probably bear three undesirable consequences: seems to be worthwhile to recall the fact that in a loss of social democratic identity vis-à-vis neo- the last instance there are effective anthropological liberalism, limits to cultural change, uncertainty and flexibi- increasing social disintegration and alienation, lity. Evidently, basic anthropological needs such

IPG 3/99 Meyer, The Third Way at the Crossroads 303 as communication or the need for security are to some extent culturally bound. But even cul- tural change cannot neglect the very substance of these basic needs. It can mould, shape, expand and reduce them, but it cannot bypass them altogether. Social democracy must maintain an acceptable bottom line of social security, however large the scope for new forms of flexibility may finally prove.

304 Meyer, The Third Way at the Crossroads IPG 3/99