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AIMING HIGH About Policy Network Policy Network is an international thinktank and research institute. Its network spans national borders across Europe and the wider world with the aim of promot- ing the best progressive thinking on the major social and economic challenges of the 21st century. Our work is driven by a network of politicians, policymakers, business leaders, public service professionals, and academic researchers who work on long-term issues relating to public policy, political economy, social attitudes, governance and international affairs. This is complemented by the expertise and research excellence of Policy Network’s international team. A platform for research and ideas • Promoting expert ideas and political analysis on the key economic, social and political challenges of our age. • Disseminating research excellence and relevant knowledge to a wider public audience through interactive policy networks, including interdisciplinary and scholarly collaboration. • Engaging and informing the public debate about the future of European and global progressive politics. A network of leaders, policymakers and thinkers • Building international policy communities comprising individuals and affiliate institutions. • Providing meeting platforms where the politically active, and potential leaders of the future, can engage with each other across national borders and with the best thinkers who are sympathetic to their broad aims. • Engaging in external collaboration with partners including higher education institutions, the private sector, thinktanks, charities, community organisations, and trade unions. • Delivering an innovative events programme combining in-house seminars with large-scale public conferences designed to influence and contribute to key public debates. www.policy-network.net AIMING HIGH Progressive Politics in a High-Risk, High-Opportunity Era Edited by Florian Ranft London • New York Published by Rowman & Littlefield International Ltd. Unit A, Whitacre, 26-34 Stannary Street, London, SE11 4AB www.rowmaninternational.com Rowman & Littlefield International Ltd. is an affiliate of Rowman & Littlefield 4501 Forbes Boulevard, Suite 200, Lanham, Maryland 20706, USA With additional offices in Boulder, New York, Toronto (Canada), and Plymouth (UK) www.rowman.com Copyright © 2016 Policy Network All rights reserved. No part of this book may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval systems, without written permission from the publisher, except by a reviewer who may quote passages in a review. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN: PB 978-1-78660-099-8 eISBN: 978-1-78660-100-1 Library of Congress Cataloging-in-Publication Data Library of Congress Control Number: 2016937535 ∞ ™ The paper used in this publication meets the minimum requirements of American National Standard for Information Sciences—Permanence of Paper for Printed Library Materials, ANSI/NISO Z39.48-1992. Printed in the United States of America CONTENTS Acknowledgements ix About the Contributors xi Introduction 1 PART I BIG PICTURE: ON 21ST CENTURY REALITIES 11 1 Rebuilding Economic and Political Capital for EU Integration 13 Silvia Merler 2 The Future of the Welfare State 23 Peter A Hall 3 The Rise of Challenger Parties and the Decline of the European Left 37 Sara Hobolt and Catherine de Vries 4 Beyond the Third Way: A New Inclusive Prosperity for the 21st Century 47 Ed Balls v vi CONTENTS PART II ECONOMICS: INNOVATION, COMPETITIVENESS AND SMART REGULATION 59 5 A Digital Progressive Project 61 Karen Kornbluh 6 The Digital Economy – A Platform for Centre-Left Revival? 69 Paul Hofheinz 7 Women’s Labour Market Participation – Continuing Challenges in Sweden 75 Moira Nelson and Dalia Mukhtar-Landgren 8 Fuelling Future Growth in Europe 83 Carlotta de Franceschi 9 Creative Destruction and the Changing Geography of European Jobs 89 Thor Berger 10 The Rise of the Citizen Expert 95 Beth Simone Noveck PART III SOCIAL POLICY: UPSKILLING AND SOCIAL INVESTMENT 103 11 Preventative Policy in Action – North Rhine-Westphalia 105 Hannelore Kraft 12 The Changing Nature of Jobs – And a Policy Agenda on Education and Training for High-Value Jobs 111 Lodewijk Asscher 13 Training and Protecting in the Innovating Economy 119 Pierre-Yves Geoffard 14 A Modern and Fair Labour Market Agenda for Europe 125 Enrique Fernández-Macías CONTENTS vii PART IV POLITICS: COALITION-BUILDING IN AN AGE OF POLITICAL FRAGMENTATION 133 15 The Future is an Opportunity, Not a Threat – If Progressives Get the Message Right 135 Frank Stauss 16 If Political Parties Were Startups ... 143 Guillaume Liegey 17 Reflections on the Centre Left in Europe and Latin America 155 Andrés Velasco 18 Politics in the New Hard Times 161 Andrew Gamble ACKNOWLEDGEMENTS This volume accompanies a larger series of seminars and confer- ences that took place in 2015 and 2016 to forge common centre-left thinking on political economy, social investment and education. They aimed to develop a reform agenda to help progressive politi- cians navigate key structural trends shaping western economies, such as the transition to a digital economy and political fragmentation. We have drawn on our network of centre-left politicians, policy experts and academics from Europe and across the world to bring together ideas for a common approach around a new inclusive growth model for open societies. One that can combine innovation and dynamism with greater social justice, and equip their economies for the 21st century. We would like to thank the Swedish Social Democratic party and the office of Swedish prime minister Stefan Löfven for their great support partnering with us to hold the Progressive Governance Con- ference in Stockholm in May 2016. We would also like to convey our thanks to David Sainsbury, Center for American Progress, Fondation Jean-Jaurès, Friedrich- Ebert-Stiftung, Social Democratic party of Germany, and the offices of French prime minister Manuel Valls and German vice-chancellor ix x ACKNOWLEDGEMENTS Sigmar Gabriel for the partnership that facilitated high-level semi- nars, in April 2015 and October 2015, of key policymakers and experts in Berlin and Paris. Those meetings laid the foundation of this volume and initiated an intellectual process which others have joined. In addition to the book’s contributors we are extremely grateful to Michael McTernan, former director of Policy Network, for his inspiration and intel- lectual input to bring this volume together. Our thanks also go to Peter Mandelson, president of Policy Network, whose outstanding efforts in chairing and facilitating the Berlin and Paris seminars have helped to strengthen crucial ties and relations across our network and the centre left in Europe. We are grateful to Emma Kinloch and Katherine Roberts, who played a crucial role facilitating the seminars. Thanks also to Renaud Thillaye, Ben Dilks and Simon Renwick for their invaluable assistance throughout. ABOUT THE CONTRIBUTORS Lodewijk Asscher is deputy prime minister of the Netherlands and minister for social affairs and employment. He also served, for sev- eral months in 2010, as acting mayor of Amsterdam. Ed Balls is a senior fellow at the Mossavar-Rahmani Center for Business & Government at the Harvard Kennedy School and a visit- ing professor at King’s College, London. He is a former UK shadow chancellor, secretary of state for children, schools and families, and chief economic adviser to the Treasury. Thor Berger is an associate fellow of the Oxford Martin School at Oxford University, and a PhD candidate at the Department of Eco- nomic History at Lund University. Thor’s work aims to understand how technological advances shape the growth of cities and regions from industrialisation until the present day. Enrique Fernández-Macías is a research manager at Eurofound, Dublin. He holds a PhD in Economic Sociology from the University of Salamanca. His main research interests are job quality, occupa- tional change and the division of labour. xi xii ABOUT THE CONTRIBUTORS Carlotta de Franceschi is co-founder and president of the Action Institute and former economic adviser to Italian prime minister Matteo Renzi. She previously spent 12 years in investment banking between New York and London (Credit Suisse, Morgan Stanley and Goldman Sachs) and holds an MBA from Harvard Business School. Andrew Gamble is professor of Politics at the University of Sheffield and emeritus professor of Politics at the University of Cambridge. His most recent book is Crisis Without End? The Unravelling of Western Prosperity. Pierre-Yves Geoffard is director of the Paris School of Economics. He has been a professor at the school since 2006 and his research interests include public economics, the economics of information and the microeconomic foundations of public health policies. Peter A Hall is Krupp Foundation Professor of European Studies and a faculty associate of the Minda de Gunzburg Center for Euro- pean Studies at Harvard University. He also serves as co-director of the Successful Societies Program, run for the Canadian Institute for Advanced Research. Peter is also a Centennial Professor in the European Institute at the London School of Economics. Sara Hobolt is Sutherland Chair in European Institutions at the European Institute, London School of Economics and Political Sci- ence. She researches extensively on European Union politics. Paul Hofheinz is president, executive