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In Search Of CALL004:CALL004 21/8/09 09:32 Page 1 John Callaghan is Professor of Politics and The search for social democracy has not been an Contemporary History at the University of Salford easy one over the last three decades. The economic crisis of the 1970s, and the consequent rise of Nina Fishman is Honorary Research Professor in In search of neo-liberalism, confronted social democrats with the History Department at Swansea University difficult new circumstances: tax-resistant Ben Jackson is University Lecturer and Tutorial electorates, the globalisation of capital and Fellow in Modern History at University College, Western deindustrialisation. In response, a new Oxford bout of ideological revisionism consumed social democratic parties. But did this revisionism Martin McIvor is editor of Renewal: a journal of simply amount to a neo-liberalisation of the Left social democracy, and works on research and In search of or did it propose a recognisably social democratic policy development for the public services trade agenda? Were these ideological adaptations the union, UNISON only feasible ones or were there other forms of SOCIAL DEMOCRACY SOCIAL DEMOCRACY modernisation that might have yielded greater strategic dividends for the Left? Why did some social democratic parties feel it necessary to take Responses to crisis and their revisionism much further than others? modernisation In search of social democracy brings together prominent scholars of social democracy to address these questions. Focusing on the social democratic heartland of Western Europe (although Australia and the United States also figure in the analysis), it gives the first detailed assessment of how the new social democratic revisionism has fared in government. The book begins by considering the underlying causes of the end of social democracy’s golden age and the magnitude of the challenges faced by social democratic parties after the 1970s. It then proceeds to examine detailed case studies of how particular Jackson and McIvor (eds) and McIvor Jackson Callaghan, Fishman, social democratic parties responded to this changed political terrain. Finally, it contributes to a broader conversation about the future of social democracy by considering ways in which the political thought of ‘third way’ social democracy might be radicalised for the twenty-first century. The contributors offer a variety of perspectives – some are sceptical of social democracy’s prospects, others more sanguine; some supportive of the performance of social democratic parties in government, others bitingly critical. But they are united by the conviction that the themes addressed in this book are crucial to understanding the current Edited by John Callaghan, Nina Fishman, politics of the industrialised world and, in particular, to determining the feasibility of more egalitarian ISBN 978-0-7190-7920-7 Ben Jackson and Martin McIvor and democratic social outcomes than have been possible so far in the era of neo-liberalism. Cover image: Massimo d’Alema, Tony Blair, Lionel Jospin and Gerhard Schröder at a gathering of European socialists, Paris, 27 May 1999. © Jacques Langevin, Corbis Corporation www.manchesteruniversitypress.co.uk In search of social democracy M1738 - CALLAGHAN Prelims.indd i 3/8/09 12:11:52 M1738 - CALLAGHAN Prelims.indd ii 3/8/09 12:11:53 In search of social democracy In searchResponses of to crisis social and modernisation democracy Responses to crisis and modernisation Edited by JOHN CALLAGHAN, NINA FISHMAN, BEN JACKSON, MARTIN MCIVOR Edited by JOHN CALLAGHAN, NINA FISHMAN, BEN JACKSON, MARTIN MCIVOR Manchester University Press Manchester and New York Manchester distributed in the United States exclusively by UniversityPALGRAVE MACMILLAN Press Manchester and New York distributed in the United States exclusively by PALGRAVE MACMILLAN M1738 - CALLAGHAN Prelims.indd iii 3/8/09 12:11:53 M1738 - CALLAGHAN Prelims.indd iii 3/8/09 12:11:53 Copyright © Manchester University Press 2009 While copyright in the volume as a whole is vested in Manchester University Press, copyright in individual chapters belongs to their respective authors, and no chapter may be reproduced wholly or in part without the express permission in writing of both author and publisher. Published by Manchester University Press Altrincham Street, Manchester M1 7JA www.manchesteruniversitypress.co.uk British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library ISBN 978 0 7190 7920 7 hardback ISBN 978 1 5261 2509 5 open access First published 2009 This electronic version has been made freely available under a Creative Commons (CC-BY-NC-ND) licence. A copy of the licence can be viewed at https://creativecommons.org/ licenses/by-nc-nd/3.0/ The publisher has no responsibility for the persistence or accuracy of URLs for any external or third-party internet websites referred to in this book, and does not guarantee that any content on such websites is, or will remain, accurate or appropriate. Typeset by Servis Filmsetting Ltd, Stockport, Cheshire Contents List of fi gures and tables vii List of contributors ix Introduction John Callaghan, Nina Fishman, Ben Jackson and Martin McIvor 1 Part I After the golden age: social democracy in crisis 1 Explanations for the neo-liberal direction of social democracy: Germany, Sweden and Australia compared Ashley Lavelle 9 2 Fiscal policies, social spending and economic performance in France, Germany and the UK since 1970 Norman Flynn 29 3 From The Future of Socialism (1956) to a future without socialism? The crisis of British social democratic political economy Noel Thompson 53 Part II Responses to the crisis: the Third Way and other revisions 4 The political economy of French social democratic economic policy autonomy, 1997–2002: credibility, dirigisme and globalisation Ben Clift 73 5 The Spanish Socialist Workers’ Party: continuity, innovation and renewal Paul Kennedy 93 6 A new Swedish model? Swedish social democracy at the crossroads Dimitris Tsarouhas 112 7 The modernisation of German social democracy: towards a third way and back? Hartwig Pautz 129 M1738 - CALLAGHAN Prelims.indd v 3/8/09 12:11:53 vi Contents 8 The meaning of modernisation: New Labour and public sector reform Eric Shaw 147 9 Reformism in a ‘conservative’ system: the European Union and social democratic identity Gerassimos Moschonas 168 Part III Resources for rethinking 10 Unlocking the talent of every citizen: debates about potential and ambition in British socialist thought Jeremy Nuttall 195 11 The continuing relevance of Croslandite social democracy Kevin Hickson 216 12 The rhetoric of redistribution Ben Jackson 233 13 Republicanism, socialism and the renewal of the left Martin McIvor 252 14 Economic democracy instead of more capitalism: core historical concepts reconsidered Adrian Zimmermann 267 15 Afterword Nina Fishman 286 Index 301 M1738 - CALLAGHAN Prelims.indd vi 3/8/09 12:11:53 List of fi gures and tables Figures 2.1 Evolution of the public sector defi cit and the French public sector debt, 1978–2002, as a percentage of GDP 44 Tables 1.1 Economic growth rates for six major nations (percentage increase per year) 11 1.2 Annual average compound growth rate of per capita GDP 12 1.3 Declining economic conditions (annual percentage change) 12 2.1 Public social expenditure 1981–2001, as a percentage of GDP 35 2.2 Unemployment benefi ts (insurance system), 2002 36 2.3 Unemployment insurance rates, 2002 36 2.4 Incomes of employed and unemployed people, 1999 37 2.5 Tax rate on low-wage earners: unemployment trap in 2002 38 2.6 The tax wedge, 2003: Marginal tax rates at income levels proportionate to the average productive wage 38 2.7 Unemployment as a percentage of the labour force, 2002–04 38 2.8 Pension ratios, 2000 39 2.9 Participation rates, 2002 39 2.10 Total tax revenue as a percentage of GDP, 1975–2003 41 2.11 Taxes on income and profi ts as a percentage of GDP, 1975– 2003 41 2.12 Public fi nances in Germany, 1970–2003 43 2.13 United Kingdom, public sector receipts and expenditure, 1970–2002 46 M1738 - CALLAGHAN Prelims.indd vii 3/8/09 12:11:53 viii Contents 2.14 Exports, imports and trade balance and rankings, world top six trading countries, 2003 47 2.15 GDP and GDP per head, 2003 48 2.16 Average annual volume change in GDP as a percentage, 1993–2003 49 2.17 Investment fl ows, 1993 and 2003 49 2.18 Hours worked per person in employment, 2002 50 2.19 Productivity, 2002 50 2.20 Labour costs, euros per hour, 2004 50 5.1 Spanish general election results, 2004 and 2008 103 M1738 - CALLAGHAN Prelims.indd viii 3/8/09 12:11:53 List of contributors John Callaghan is Professor of Politics and Contemporary History at the University of Salford. He is the author of The Labour Party and Foreign Policy (2007), The Retreat of Social Democracy (2000) and Socialism in Britain (1990). Ben Clift is Senior Lecturer in Political Economy in the Department of Politics and International Studies at the University of Warwick. He is the author of French Socialism in a Global Era (2003), and co-editor of Where Are National Capitalisms Now? (2004). He has written several journal articles and book chapters on French socialism, the French model of capitalism, New Labour and the political economy of social democracy. Nina Fishman is Honorary Research Professor in the History Department at Swansea University. She is completing a biography of Arthur Horner and collaborating with Richard Whiting on a book about twentieth-century British trade unions. She is also researching in nineteenth- and twentieth- century comparative European industrial and labour history. Norman Flynn runs the MSc in Public Policy and Management at SOAS, University of London. He is the author of Public Sector Management (5th edition, 2007), Miracle to Meltdown in Asia: Business, Government and Society (1999), and co-author and editor of Public Sector Management in Europe (1996).
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