proposals for a progressive governance | Re-public: re-imagining democracy

Proposals for a progressive governance: Socialists, Labour, Social Democrats are planning the future

by Paulina Lampsa

End of an era. The financial crisis has changed our worldview in such a determining way because as Massimo D’Alema notes, it is also social, political, and cultural. According to David Miliband, this crisis has challenged, in an irrevocable manner, all orthodox thought on the relations between states and markets, and the distribution of powers on the national and the international level. At the same time, it presented a wake up call for socialist, social democratic and labour parties, who after many years of “ideological anorexia”, are now facing a society that not only demands effective policies but is also in need of values. “Politics is all about values”, underlines Ibrahim Baylan, a migrant of Turkish origin, who recently became Secretary General of the Swedish Social Democratic party. Values, nevertheless, have to be translated into effective policies, because citizens no longer judge based on traditional or sentimental affiliations to political parties. They expect immediate and concrete results.

David Miliband – Social democratic solutions to the crisis

The economic crisis has irrevocably challenged orthodox thinking on the relationships between states and markets and national and global distributions of power.

Some say that the Anglo-Saxon model of open markets needs to be pulled down, but this would stifle the investment and innovation we need to return to growth. Our priorities need to be minimising the depth of the recession and ensuring the upturn is sustainable by delivering on national fiscal expansion programmes, resisting measures to protect national industries and strengthening regulation to reform the global banking system.

To deliver change, the forces of cooperation need to win out. The success of the G20 has ushered in a new multilateralism, and we need to use this moment to reform our international institutions so they reflect the emergence of a multipolar world. Instead of protectionism, we must defend the European single market and use this opportunity to demonstrate that the EU is a partner of positive choice.

Tackling climate change must be a contribution not a distraction to recovery. Governments should use stimulus to restructure their economies around low-carbon industries and homes and diversify energy sources.

As social democrats, our fate will be determined not by the crisis itself but by how we respond. We must take this opportunity to build the coalitions required to pursue shared goals.

Ségolène Royal – Politics of civilization and political voluntarism

Crises reflect a world that no longer exists and herald a world that does not exist, yet. Such is the historical time we are experiencing. Close interdependence of what we commonly call because it is convenient or easier, “crises” (financial, economic, social, ecological, food, democratic…”) and our incapability to address them separately, shows that the left of the 21st century has to counterforce the model which, on a global level has reached its limits and constitutes the condition of multiple insecurities, with what the sociologist Edgar Morin calls “politics of civilization”.

From this perspective, the various challenges that the old concept of society and progress used to dissociate to the point of exaggeration must be confronted directly.

One example is the ecological challenge. It is impossible to achieve this, commonly acknowledged, urgent ecological revolution by constraining it within an artificially sectoral approach. Another vision of development and a true effectiveness in the protection of our environment, implies the radical transformation of our economies, industrial policies adapted to future needs, mass investment in research and training for the encouragement of creation of activities and innovative methods of production. It means, at the same time, the enrichment of our perception for social justice beyond the notion of redistribution, although on second guess this might also be necessary. The policies for real equality must incorporate the ecological dimension, provide access to public transport and quality in social settlements, reduce the bills of lower income households through the use of renewable energy, include this struggle for healthy work conditions in industry and agriculture, reinvent the solidarity between the North and the South, etc.

Facing the indifference of French car manufacturers, I decided to appeal to the district where I preside, for programs of construction of an economic, electric car. I did it for a number of reasons. Ecological: a vehicle that is not depended from oil and doesn’t pollute. Economic: in order to encourage innovative enterprises and the transformation of a car industry, that although possesses the know-how is actually in the danger of extinction because its donors had abandoned it and the fatalism of decision makers has condemned it. Social: for the transformation of hundreds of jobs under threat into jobs of the future and the provision of a low cost car to everyone. Tax reasons: because I advocate an ecological, effective and socially just taxation, I opposed the carbon tax that was implemented by the Sarcozy administration. Since today neither electrical low cost cars, nor mass public transport are available for the regional – urban and agricultural environment, what is the freedom of choice for a different mode of transport apart from the diesel fueled personal car and how can the lower income families become ecologically responsible?

I wanted the Region to jointly solidify the demand and supply of electric vehicles. Above all, we mobilized the enterprises for the launching of an innovative program. We participated in the financing capital of this car industry with 5 million Euros (a first for France!) to encourage the involvement of citizens and oblige the State to perform its duty by activating the funds of strategic investment that were created, in theory, in order to boost economic recovery. We made a commitment to safeguard the professional careers of the wage earners (by training and guarantee of resources) in this transitional phase between the vanishing of old jobs and the creation of new ones. At the same time, we solidified demand by mobilizing corporations and local communities to buy those electric vehicles and by contributing to their purchase by citizens.

Our involvement does not in any way constitute a return to the way the economy was managed in the past, where the State was directly acting as a businessman. This humble example represents what I believe must be the new voluntarism of public power, in contrast to the exaggerated pseudo- voluntarism of the Sarkozyan right: to provide an answer for contemporary problems here and now, while we are imagining the future, and to choose multifaceted policies where social justice is a prerequisite for economic, ecological and democratic effectiveness.

Massimo D’Alema – After the crisis the world will be a different place

The international crisis marks a thorough turn of era. It is a financial, economic and social crisis, but it is also a political and cultural one: the cycle of a globalization without rules, dominated by an ultraliberal ideology, is finally closing. Ideas of the socialist tradition are again topic for discussion: in the first place politics and democratic institutions must lead and regulate an economic development founded on democratic principles, social justice and respect of individual freedoms. After the crisis the world will be different, and a new stage of economic globalization will begin, one where demands of equality and human promotion will carry a stronger weight. Therefore, progressives will be directly involved and will be asked to provide strategic responses and a new development model.

The ultraliberal development cycle has underlined the existence of a serious democratic deficit. For this reason and to re-establish a connection with the European public, it is essential to bring back at the core of our message the question of democracy. Democracy as the right to participate, to exert control and have the guarantee of transparency in working places, for consumers and small savers. Moreover, it is necessary to reduce the democratic deficit in the supranational institutions, in order to increase the states’ capability to cooperate and to commit themselves in the pursuit of common goals.

Another imbalance created by this globalization without rules regards the growth of unacceptable inequalities. In order to reduce this deficit of social justice we shall engage for a fairer distribution of wealth, the revaluation of labor, the strengthening and extension of efficient welfare systems that, as social investments, will produce citizens’ empowerment, culture, freedom, and system competitiveness. These are all social equity policies, instruments for the support of labor productivity and economic development that progressives must promote. This is also needed in order to take roots again among the productive forces and, more in general, in society.

At the same time progressives must foster innovation, after a long phase during which development rested on developing countries’ low salaries, while we experienced a wealth which was largely disengaged from our capabilities to produce and innovate. It is urgent to focus on innovation, training and research as the precondition for a new cycle of development and growth. It is necessary to set the following priorities: new environmental technologies, alternative energy sources, biomedicine.

Last but not least, the European question. All that has been suggested here loses significance, without a strengthened and more united European Union with more efficient institutions. We need a radical change in our effort to harmonize development and inclusion policies, budget and fiscal policies, research and development. The challenge of the globalized world is mainly the capability to govern supranational processes. And Europe has the most advanced democratic tool. It is in the progressives’ interest to strengthen this tool and make it more effective to inaugurate a new era of European reformism.

Luis Ayala – The main challenges of a progressive government today

A progressive government today needs to urgently recapture the sense of purpose of politics and revalue politics itself by being true to its colours. It needs to restore people’s faith in government by re-setting priorities. It needs to act to place not more or less government, but efficient government and policies that serve the majority of the people, including the most vulnerable, at the center of its agenda. Societies fractured as a result of crisis need to be reconstructed and regain a shared identity and renewed cohesion. For citizens, security should come from decent employment, affordable health services, accessible education, secure savings and meaningful pensions. All of this, coupled with a well rooted democracy accompanied by sound institutions, should lie at the heart of progressive government and provide the solid foundations and legitimacy required to effectively deal with the serious global problems we all face today.

Markets and big business should no longer take center stage. Governments should take the lead in regulation and enforcement so the mistakes of the past are not repeated. A new sense of responsibility and of a common humanity should inspire government action to create the international institutions urgently needed in our globalised world, so that vast numbers of people and areas of our planet are not left behind. As climate change is rapidly altering the earth and the way we live, immediate action and real commitments to transform a high carbon economy to a low carbon society are a crucial priority. With solidarity as the cornerstone of progressive politics, defeating poverty and providing food security are challenges to overcome and for us a world in peace and free of nuclear weapons must always remain our ultimate goal.

Olaf Scholz- Social agreements as the basic tool for securing employment

The most severe global economic crisis from 1929, has hit Germany with
force, since 40 % of its GDP is generated by exports. It was clear
from the outset that we must do everything in our power to face this crisis and to secure employment.

The short-time work programme (Kurzarbeit) is the instrument that we have chosen in Germany for this purpose. Early on, rapidly and with great intensity, we have encouraged creative industries, as well as large companies, to keep their work force employed by subsidizing educational and retraining courses. The training of workers is financially supported by the state. Our motto is: “More training, not lay offs”.

This programme has helped Germany to be in a better position compared to other European countries. Although Germany’s economic performance has been severely affected, unemployment has only marginally increased.

The basis for this success has been the increased cooperation within the workplace as well as between trade unions and employers. Such agreements that secure employment would have been unimaginable without a reliable institutional framework that allows for extended social partnerships.

We have not overcome the crisis, yet. We have to persist on searching for and implementing innovative solutions for strengthening employment, a task that the new German government is committed to pursue.

Kemal Dervis – Equity and solidarity at a time of economic crisis

Progressives and Social Democrats all over the world face the challenge of responding to the great economic crisis of 2008-2009 with proposals and programmes that can lead to a strong and sustainable economic recovery, a recovery that is broad based, creates decent jobs and generates benefits not just at the top, but for average families and also the most vulnerable citizens. A recovery that simply tries to go back to where the world was in 2007 would not solve the deep seated problems that both the advanced countries and the developing world have been facing in recent decades.

Fiscal balances will have to be restored in a way that ensures truly progressive taxation, improves the effectiveness of social programmes and provides incentives for job creation by medium and small scale enterprises. The transition to a low carbon economy should be an opportunity to unleash innovation and create green jobs so that this necessity can be turned into an opportunity. For smaller countries in particular, the pace of growth will of course depend a lot on growth in the world and in their region. For Greece, what happens in Europe, in the Balkans and in the Eastern Meditterranean will have a determining influence on prosperity. Building a strong Europe and a peaceful and rapidly growing neighbourhood will bring benefits to be shared by all.

Juan Somavia – Innovative ideas that address the financial crisis

The global crisis requires a global response, yet national policies must reflect and respond to the specificity of each country’s experience of the crisis. The ILO Global Jobs Pact, adopted by governments, employers and unions at the Organization’s International Labour Conference in June 2009, addresses this twin challenge.

The following policy approaches may be useful to address the consequences of the global crisis:

Policies to put the financial sector at the service of the real economy, of productive investment, sustainable enterprises and decent work;
Prioritize the employment intensity of economic growth, by promoting employment intensive sectors, including green jobs and adaptation to climate change policies;
Promote a balanced and sustainable pattern of growth, combining the dynamism of the market and enterprises, with the basic functions of government within shared public policy objectives;
Strive for a pattern of economic growth led by income-based demand, broadening opportunities for productive employment, avoiding precarious employment, and wage deflation;
Ensure a basic floor of social protection to all persons and families, to sustain livelihoods and security of pensions;
Equip the work force with the skills needed for today and tomorrow;
Promote a fair globalization with a moral compass, providing opportunities to all.

The severity of the global financial crisis could lead to several years of high unemployment. A jobless recovery would not be economically, socially and sustainable.

The Global Jobs Pact provides an overall framework to address the immediate response to the crisis and to start shaping the new fairer and more inclusive globalization that must replace the instability and inequality that led to the crisis.

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