Category Archives: Social Democracy

WHY THE LEFT LOSES.  The decline of the centre-left in comparative perspective – Rob Manwaring and Paul Kennedy. 

Foreword 

Sheri Berman 

The decline of the centre-left over the past years is one of the most alarming trends in Western politics. During the latter part of the 20th century such parties either ran the government or led the loyal Opposition in virtually every Western democracy. 

Germany’s Social Democratic Party (SPD), once the most powerful party of the left in continental Europe, currently polls in high 20s or 30s. The French Socialist Party was eviscerated in the 2017 elections, as was the Dutch Labour Party. Even the vaunted Scandinavian social democratic parties are struggling, reduced to vote shares in the 30 per cent range. The British Labour Party and the US Democrats have been protected from challengers by their country’s first-past-the-post electoral systems, but the former has recently taken a sharp turn to the hard-left under Jeremy Corbyn, while the latter, although still competitive at the national level, is a minority party at the state and local levels, where a hard-right Republican Party dominates the scene. 

The decline of the centre-left has hurt Western democracy. It has left voters free to be captured by extremist parties, particularly of the far-right populist variety, which threaten the liberal and perhaps even democratic nature of Western politics. In addition, centre-left parties played a crucial role in creating and maintaining the post-war order on which stable democracy was built following the Second World War. Without a revival of the centre-left, it is hard to see how this order and perhaps even well functioning democracy can be resuscitated. 

This book analyses the decline of the centre-left, and in so doing, may provide its supporters with the insights necessary to revitalise it. Why the left loses focuses on three main issues the centre-left must confront: leadership, institutions/ structural change and message/ vision. 

The first is the most straightforward, but nonetheless crucial. Leaders represent and personify what parties stand for; in order to win, the centre-left needs leaders who can connect to a diverse and demanding electorate, and attractively, forcefully and effectively convey their party’s messages. 

Attracting such leaders does not, of course, happen in a vacuum. Talented and ambitious individuals are drawn to parties they believe can deal with the challenges of the day. 

This brings us to issues of institutions/ structural change and message/ vision. Institutional and structural changes over the last decades in domestic and international political economies have created major challenges for all traditional political parties, but particularly for those of the centre-left. 

After 1945 in Western Europe (and beginning with the New Deal in the US), the West began constructing a new type of political economy, one that could ensure economic growth while at the same time protecting societies from capitalism’s destructive and destabilising consequences. 

This order represented a decisive break with the past: states would not be limited to ensuring that markets could grow and flourish, nor would economic interests be given the widest possible leeway. Instead, after 1945 the state was to become the guardian of society rather than the economy, and economic imperatives would sometimes have to take a back seat to social ones. 

This post-war order represented something historically unusual: capitalism remained, but it was capitalism of a very different type than had existed before the war – one tempered and limited by the power of the democratic state, and often made subservient to the goals of social stability and solidarity, rather than the other way round. This was a farcry from the revolutionary destruction of the capitalist order that orthodox Marxists, communists and others on the far left had demanded during the pre-war period, but it still varied significantly from what liberals had long favoured – namely, giving as much free rein to markets as possible. 

This was, in short, a social democratic order – and it worked remarkably well. Despite fears after the war that it would perhaps take decades for Europe to recover economically, by the early 1950s most of Europe had easily surpassed interwar economic figures, and the 30 years after 1945 were Europe’s fastest period of growth ever. 

The restructured political economies of the post-war era seemed to offer something to everyone, and this, in turn, helped to eliminate the belief – long held by liberals, Marxists and others – that democratic states could not or would not protect particular groups’ interests. 

Because the centre-left was most closely associated with this order and the most determined defender of it, it had the most to lose from its demise. And so the pressures put on this order since the 1970s by increasing globalisation, growing government deficits and the neoliberal and eventually austerity policies adopted by the European Union (EU) have left the centre-left scrambling to come up with new strategies for getting economies moving again, while also ensuring that democratic states continued to protect citizens from the changes brought by ever-evolving capitalism. 

Alongside changes in domestic and international political economies, centre-left parties have also been challenged by social and cultural shifts that began in the 1960s and threatened traditional identities, communities and mores – a process further exacerbated, particularly in Europe, by growing immigration. Together these trends helped erode the social solidarity and sense of shared national purpose that had supported the social democratic post-war order and helped to stabilise European democracies in the decades following the Second World War. 

The US faced its own version of this with the growing political incorporation and mobilisation of minority groups since the civil rights era, and the increasing shift towards a non-majority white population destabilising traditional social and political patterns. 

But economic, social and cultural institutional and structural changes have not doomed the centre-left to oblivion. They represent challenges, and how the centre-left (or any other party) responds to challenges determines how voters react and political systems evolve. The problem for the centre-left, in other words, is not merely the challenges it has faced over the past decades so much as its lack of convincing and coherent responses to them. 

Here is where Why the left loses‘ third issue comes in: message/ vision. After the 2008 financial crisis many observers expected a significant swing to the left among Western electorates, since many blamed the economy’s problems on the neoliberal policies that had proliferated during the end of the 20th and beginning of the 21st centuries. 

But the centre-left lacked a convincing message for dealing with the crisis, or a more general vision of how to promote growth while protecting citizens from the harsher aspects of free markets. Instead, it kept on trying to defend out-dated policies or proposed watered-down versions of neoliberalism that barely differentiated it from the centre-right. 

The centre-left also lacked a convincing message about how to deal with increasing diversity or a vision of social solidarity appropriate to changing demographic and cultural realities. Instead, the centre-left either ignored the challenge of diversity or especially among the intellectual left, put forward a message of ‘multiculturalism’ –neither of these responses was able to stem social conflict or electoral flight from the left, especially on the part of the working class. 

It has now become fairly commonplace to note the support given by traditionally centre-left voters to the populist right. This connection was on obvious display in the Brexit referendum, where many traditional Labour strongholds and supporters voted to leave the EU, and it has been a prominent feature of elections in Europe as working-class voters have flocked to right-wing populist parties. And, of course, a version of this was present in the US, where Donald Trump garnered disproportionate support from less-educated and working-class voters. 

What is still worth stressing, however, is the causal connection between the failures or missteps of the centre-left and the rise of right-wing populist parties that offered simple, straightforward messages in response to citizens’ economic and social fears. 

Economically, the populist right promises to promote prosperity, via increased government control of the economy and limits on globalisation. Socially, the populist right promises to restore social solidarity and a sense of shared national purpose, by expelling foreigners or severely limiting immigration, diminishing the influence of the EU and globalisation, and protecting traditional values, identities and mores. 

For those who bemoan the decline of the centre-left and the rise of the populist right, the challenge is clear: you can’t beat something with nothing, and if the centre-left can’t come up with more viable and attractive messages about how to solve contemporary problems, and a more attractive vision of the future than those offered by its competitors, it can expect to continue its slide into the dust heap of history. 

The following chapters provide an excellent starting point for the debate about the centre-left’s future. 

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ONE 

Why the left loses: understanding the comparative decline of the centre-left.  

Rob Manwaring and Paul Kennedy 

Introduction 

Since the global financial crisis (GFC), if not before, there has been a general decline in the fortunes of social democratic and labour parties. Against these recent developments, there is a long-standing literature that appraises the electoral performance and impact of the left more broadly (Przeworski and Sprague, 1986; Kitschelt, 1994; Moschonas, 2002). 

Much of the literature on social democracy tends to be pessimistic, and there is a plethora of research that denotes recent developments as a ‘crisis’, on the ‘back foot’, ‘in retreat’, and perhaps most arrestingly, as ‘dead’ (Gray, 1996; Pierson, 2001; Keating and McCrone, 2013; Lavelle, 2013; Ludwigshafen et al, 2016). 

In a prescient address at the London School of Economics and Political Science (LSE) in 2011, David Miliband catalogued the general wreckage of the electoral fortunes of the centre-left across Western Europe. In his critical survey of European social democracy, he noted: 

• The UK General Election in 2010 – the second worst result for Labour since 1918. 

• Sweden, also in 2010 – the worst result since 1911. 

• Germany in 2009 – the worst result since the founding of the Federal Republic, with a greater loss of support than any party in the history of the country. 

• France in 2007 – the worst result since 1969. 

• The Netherlands in 2009 – a traumatic transition from a junior coalition partner to Opposition. 

• Italy – a yo-yo in and out of power, with personal and political divisions disabling opposition to Berlusconi. 

More recent results generally confirm this overall trend, with British Labour losing both the 2015 and 2017 general elections. 

The Dutch general election in early 2017 saw the worst-ever result for the Dutch Labour Party (PvDA, Partij van de Arbeid). The PvDA lost 29 seats, only holding 9 in the 150-seat Parliament. The Dutch result is something of an outlier for the misfortunes of the centre-left. 

Later in this chapter we survey the state of the left more widely. This collected volume investigates the electoral fortunes of the family of centre-left labour and social democratic political parties. In this chapter we set out the aims and scope of the volume, and its contribution to understanding the comparative political decline of the centre-left. 

After mapping the electoral fortunes of centre-left political parties, we then locate this volume in the current literature, and set out the distinctive approach offered here. From our perspective, one of the deficiencies of the current literature is that it focuses almost exclusively on the family of (mostly Western) European social democratic and labour parties. While much of this literature is incisive and important, we have a nagging concern that this narrow focus is missing a key part of the wider story. 

As we outline below, we need to expand the explanatory universe to better understand the current plight of the centre-left. 

We have been a little mischievous in the title of this volume – Why the left loses –and it would be useful here to clarify the book’s scope. The volume is not called ‘Why the left always loses’ or ‘Why the left will never win again’. Rather, the focus is on examining the current electoral performance of a cohort of the family of social democratic and labour political parties within a specific timeframe (broadly, 2008-16). 

The title of the volume is deliberately provocative, in part, because we hope that it will reach a wider readership than just the academy. The term ‘left’ is deployed here as a proxy for these groups of political parties. 

Our focus remains their fate of – often, but not always – the main carriers of wider social democratic values. The book does not seek to argue that the values and ideas associated with the ‘left’ are in decline –indeed, we argue that in a number of cases the opposite is true, that they have been readily co-opted by a number of parties on the centre-right, and other populist challengers. Nor are we suggesting that there are common or single causes for the current state of the full suite of centre-left political parties. And to be clear, by ‘left’ we mostly focus on the long-standing social democratic and labour parties rather than some of the alternative ‘socialist’ or ‘left’ parties such as Die Linke established in Germany in 2007. 

The social democratic parties remain important political actors, even if they are not in the best of electoral health. The risk with the title Why the left loses is that by the time the volume is published, there will have been a turnaround in the electoral fortunes of the social democratic parties. Indeed, it was just at the point of Blair and Schröder declaring the hegemonic victory of the Third Way/Neue Mitte that the fortunes of the left began to decline. 

As Ralf Dahrendorf noted in a telling intervention, the highpoint in the late 1990s for the centre-left masked other key changes in the party systems of the advanced industrial democracies: The real trend – which is underlined by the European elections – is towards non-traditional parties, many of which did not exist 20 years ago. (Dahrendorf, 1999) 

The key issue is that while the late 1990s may have signalled something like the ‘magical return’ of social democracy, we are more circumspect in predicting a ‘second coming’ by the time this volume is released. 

Moreover, if there were to be a revival of the centre-left, and clearly many of the writers in this volume would welcome a return to a more full-bloodied variant of social democratic politics, it would not necessarily undermine the central focus of the book. We look to explain why the left has been doing poorly in this period under review. Indeed, in one of our cases – state Labor in Australia – there has been something of a revival of the centre-left. 

Overall, we focus predominately on the period from the mid-2000s to the mid-2010s. The crucial event here is the impact of the global financial crisis (GFC), and the response of the parties to this latest rupture in the global capitalist system. The response has not been overwhelming. 

The state of the left

There have been a number of recent surveys of the family of social democratic parties (Keating and McCrone, 2013; Bailey et al, 2014, p 8), with the focus predominately on the European parties. Here we offer a related, but broader, survey. 

While there is no clear, uniform trend, the overall picture is rather dismal for centre-left parties (see Table 1.1). In France, the 2012 presidential election win proved a temporary highpoint for the Parti socialiste (PS) under François Hollande. Indeed, the seven-year term of the presidency arguably overstates the dominance of the PS. 

As outlined by Sophie Di Francesco-Mayot (see Chapter 10), there is a strong case that while the left was in office, it was ‘losing the battle of ideas’. It was striking, and perhaps not that surprising, when Hollande announced that he would not be contesting the 2017 presidential elections –the first post-war president not to seek office. Strikingly, PS did not make the second round run-off in the 2017 presidential election, much like the dismal 2002 election. Indeed, the Macron phenomenon would suggest a further decline and fragmentation of the centre-left. 

Table 1.1: Centre-left parties in Office and Opposition (2008-16)

Note: In Canada Justin Trudeau took the Liberal Party into office. There is a dispute as to whether to categorise the Liberals as centrist or social democratic, given the New Democratic Party espouses the clearest social democratic programme in Canada. Source: European data drawn in part from Bailey et al (2014, p 9) 

In Germany, the centre-left SPD (Sozialdemokratische Partei Deutschlands, or Social Democratic Party of Germany) has been unable for quite some time to puncture the dominance of Angela Merkel’s CDU (Christian Democratic Union). Since 2005, Merkel has been unassailable in German politics, with the SPD first as a junior coalition partner, then back in Opposition. At the 2013 election, Merkel reluctantly turned to the SPD as junior partner once again. 

In Uwe Jun’s account (see Chapter 7), the factors for the SPD’s electoral health are examined. What is striking about the SPD is that like other cases considered here, its troubles pre-date the GFC. To a large extent, the SPD, like the SAP (Swedish Social Democratic Party) and the UK Labour Party, is experiencing a prolonged hangover from its turn to the Third Way. 

In Spain, the picture is arguably more pessimistic for the PSOE (Spanish Socialist Workers’ Party). Since losing office in 2011, the party has lost consecutive general elections in 2015 and 2016, and, as Paul Kennedy outlines in his overview (see Chapter 9), it faces a range of pressures, not least the emergence of the left-populist Podemos party in 2014. Over this time, the PSOE has been haemorrhaging votes. As Kennedy notes, while the PSOE has not yet faced its own version of ‘Pasokification’ (the ultimate destruction of the once dominant Greek social democrats), its future is far from assured. 

In Sweden, often claimed as having the purest form of social democracy, the SAP finds itself in turbulent times. It was in office from 1994 to 2002; it then lost both the 2006 and 2010 elections, and narrowly won the 2014 election, governing in coalition with the Green Party. The 2014 results obscure the thinness of SAP’s victory with only a minor improvement of its vote, at 31 per cent. 

Here, we see a clear example of arguably a structural trend facing centre-left parties –a narrowing of its voter base. Whereas the PSOE faces a left-populist challenge, the striking characteristic of the Swedish party system has been the emergence of the nationalist right-populist Swedish Democrats. As Claes Belfrage and Mikko Kuisma argue (see Chapter 8), the SAP is confronted by long-standing economic constraints imposed by the capitalist system and is playing something of a ‘losing game’. It remains unclear how far the 2014 result signifies a meaningful revival of the centre-left. 

While this volume confines its European focus to these countries, the outlook for the centre-left across Europe is mixed, at best. In Italy, the fortunes of the centre-left have been –in David Miliband’s words –something of a ‘yo-yo’. The centre-right was dominant from 2001 to 2006. Under Romano Prodi, the centre-left briefly resumed office (2006-08), before losing again to the centre-right in 2008. It is telling that after the GFC, the Italian electorate placed its faith in the ‘technocratic’ government of Mario Monti, until the centre-left bloc took over in 2013. This recent development, however, can hardly be considered stable government, and the development of Beppe Grillo’s Five Star Movement presents another populist challenge to both left and right. 

In The Netherlands, the 2017 election was catastrophic for the PvDA. Prior to this calamity, it was in Opposition between 2002 and 2006, and again between 2010 and 2012. At the 2012 elections it entered as a junior partner in coalition with the centre-right VVD (People’s Party for Freedom and Democracy). In the multi-party Dutch system, the PvDA has been unable to secure a firmer electoral base, and again, a xenophobic populist party – in this case, led by the ubiquitous Geert Wilders – poses both a strategic and ideational dilemma for both left and right. It appears that the left not only loses elections; it can’t win them outright either. 

In Austria, while the SPŐ (Social Democratic Party of Austria) has been the largest partner (just) in a grand coalition, Austrian politics has seen the emergence of the far-right, and both major parties recorded their worst ever results at the 2008 legislative elections. 

In Norway, Jens Stoltenberg’s Labour party (AAP) was a dominant force from 2005-13, but lost power to the centre-right bloc. 

While these cases are not considered here, they remain emblematic of a range of problems and dilemmas facing social democratic and labour parties, especially in the context of a shifting party system, with new populist challengers. 

We also include and survey the fortunes of the centre-left in the Anglosphere, and here we focus our attention on Australia, New Zealand, Canada and the UK. Controversially for some, we locate the UK Labour Party outside the core European family of social democratic parties (although the Brexit result provides further support for this case). 

As a range of writers and indeed, Labour figures, have pointed out, the UK Labour Party often has more in common with its Antipodean Labour sisters than its European social democratic counterparts.

 As Rob Manwaring and Matt Beech outline in Chapter 2, the picture here is fairly dismal for the centre-left. Labour has experienced ‘Pasokification’ in Scotland, and since the fall of New Labour in 2010 has been unable to claw its way back into power. While the 2010 result was widely anticipated, Labour’s loss to the Conservatives in 2015 was not. While Corbyn-led Labour secured a better-than-expected result at the 2017 general election, Labour has now lost three elections in a row since Tony Blair stepped down as leader. 

Elsewhere, there is a catalogue of defeat for the left. In two different contexts, Canada and New Zealand, there has been a dominance of the centre-right. From 2008-15, Stephen Harper’s Conservative party has dominated Canadian politics, and it is only with the recent win of Justin Trudeau that there has been some shifting back to a more left-leaning position. Yet, as David McGrane outlines in Chapter 3, the fate of the NDP (New Democratic Party) illustrates the difficulty of seeking to impose a social democratic settlement at a time of Liberal Party resurgence. Strikingly, at the 2011 election, the NDP seemingly made a key breakthrough under the leadership of Jack Layton, but the fortunes of the NDP have since declined. 

Likewise, in New Zealand, the NZ Labour Party has been unsuccessful in dislodging the centre-right National Party under the dominant leadership of John Key. Labour lost three straight elections, and despite the unexpected resignation of Key at the end of 2016, its chances of winning at the 2017 general election look marginal at best. Grant Duncan surveys the wreckage of the NZ Labour Party (in Chapter 4), and what is striking here is the flexibility of the centre-right, and, most notably, a shift away from a strident form of neoliberal politics. 

Finally, in Australia, after 11 years in the wilderness, the ALP (Australian Labor Party) took office under the, initially, strong leadership of Kevin Rudd. Yet, within the space of a few years, the ALP turned in on itself, and Julia Gillard (just) secured a minority government in 2010. And in another rancorous turn, the ALP ditched Gillard weeks before the 2013 election. Since then, despite a promising election campaign in 2016, the ALP remains in Opposition. 

As Carol Johnson examines in her chapter on the ALP (see Chapter 5), Labor was beset by a range of both institutional and ideational problems. Most critically, Johnson examines the central dilemma facing centre-left parties in the capitalist system. 

We also include in this volume a chapter on a much neglected story of the centre-left – the Australian state Labor parties (see Chapter 6). During the mid-2000s, a rather intriguing phenomenon occurred when Labor held office in every single state and territory. Since then state Labor has been on the back foot. The chapter therefore offers the reader a clear comparative case study of sub-national social democracy to illuminate why the left loses elections. 

If time and space permitted, we might also look beyond our cases and see the, at best, mixed picture for the centre-left. Critically, the 2016 presidential election victory by Donald Trump in the US seems to encapsulate many of the current dynamics of the modern party system, with a populist backlash against both major political parties. 

In Latin America, left-ist parties have also suffered setbacks (Aidi, 2015), although the extent to which we locate them in the ‘social democratic’ tradition is contested. 

The key issue from this brief survey is that the left is currently losing, or not winning well, and also recording some record losses in the period from the GFC to 2016. The aim of this volume is to explore and examine, comparatively, the reasons for this current state of play. 

It is worth making a few caveats to this overall survey. 

First, most liberal democracies in advanced industrial settings operate on some turnover of governments. We are circumspect in over-emphasising any ‘trend’ of the ‘left losing’. 

Second, in many cases, the left losing is, indeed, a noted part of their histories. To take the UK Labour Party as a prominent example, until New Labour, its electoral record was patchy at best (between 1945 and 1997 it held office for just 17 of those 52 years). 

Third, while we make comparative judgements, and see some common themes, such as populism, Third Way hangovers, out-dated political economic models, changing class patterns, and so on, there are specific conditions playing out. The left loses, but not always for the same reasons.

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from

WHY THE LEFT LOSES.  The decline of the centre-left in comparative perspective

Edited by Rob Manwaring and Paul Kennedy. 

get it at Amazon.com

ARE WE AS BRAVE AS LABOUR IN THE 1930s?- Bryan Gould.

New Zealanders like to think that we are, in most respects, up with – if not actually ahead of – the play. Sadly, however, as a new government is about to emerge, there is no sign that our politicians and policymakers are aware of recent developments in a crucial area of policy, and that, as a result, we are in danger of missing out on opportunities that others have been ready to take.

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The story starts, at least in its most recent form, with two important developments. First, there is the now almost universal recognition that the vast majority of money in circulation is not – as most people once believed – notes and coins issued on behalf of the government by the Reserve Bank, but is actually created by the commercial banks through the credit they advance, using bank entries rather than cash, and usually on mortgage.

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The truth of this proposition, so long denied, is now explicitly accepted by the Bank of England, and was – as long ago as 1994 – explained in a letter written by our own Reserve Bank to an enquirer, and stating in terms that 97% of the money included in the usually used definition of money known as M3 is created by the commercial banks.

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The proposition is endorsed by the world’s leading monetary economists – Lord Adair Turner, the former chair of the UK’s Financial Services Authority and Professor Richard Werner of Southampton University, to name but two. These men are not snake-oil salesmen, to be easily dismissed. They have been joined by leading financial journalists, such as Martin Wolf of the Financial Times.

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The second development was the use by western governments around the world of “quantitative easing” in the aftermath of the Global Financial Crisis. “Quantitative easing” was a sanitised term to describe what is often pejoratively termed “printing money” – but, whatever it is called, it was new money created at the behest of the government and used to bail out the banks by adding it to their balance sheets.

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These two developments, not surprisingly, generated a number of unavoidable questions about monetary policy. If banks could create billions in new money for their own profit-making purposes, (they make their money by charging interest on the money they create), why could governments not do the same, but for public purposes, such as investment in new infrastructure and productive capacity?

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And if governments were indeed to create new money through “quantitative easing”, why could that new money not be applied to purposes other than shoring up the banks?

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The conventional answer to such questions (and the one invariably given in New Zealand by supposed experts in recent times) is that “printing money” will be inflationary – though it is never explained why it is miraculously non-inflationary when the new money is created by bank loans on mortgage or is applied to bail out the banks.

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But, in any case, the master economist, John Maynard Keynes, had got there long before the closed minds and had carefully explained that new money could not be inflationary if it was applied to productive purposes so that new output matched the increased money supply. Nor was there any reason why the new money should not precede the increased output, provided that the increased output materialised in due course.

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Those timorous souls who doubt the Keynesian argument might care to look instead at practical experience. Franklin Delano Roosevelt used exactly this technique to increase investment in American industry in the year or two before the US entered the Second World War. It was that substantial boost to American industrial capacity that was the decisive factor in allowing the Allies to win the war.

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And the great Japanese (and Keynesian) economist, Osamu Shimomura, (almost unknown in the West), took the same approach in advising the post-war Japanese government on how to re-build Japanese industry in a country devastated by defeat and nuclear bombs.

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The current Japanese Prime Minister, Shinzo Abe, is a follower of Shimomura. His policies, reapplied today, have Japan growing, after years of stagnation, at 4% per annum and with minimal inflation.

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Our leaders, however, including luminaries of both right and left, some with experience of senior roles in managing our economy – and in case it is thought impolite to name them I leave it to you to guess who they are – prefer to remain in their fearful self-imposed shackles, ignoring not only the views of experts and the experience of braver leaders in other countries and earlier times, but – surprisingly enough – denying even our own home-grown New Zealand experience.

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Many of today’s generation will have forgotten or be unaware of the brave and successful initiative taken by our Prime Minister in the 1930s – the great Michael Joseph Savage. He created new money with which he built thousands of state houses, thereby bringing an end to the Great Depression in New Zealand and providing decent houses for young families (my own included) who needed them.

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Who among our current leaders would disown that hugely valuable legacy?

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Bryan Gould, 2 October 2017

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BryanGould.com

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Freeing up the rich to exploit the poor – that’s what Trump and Brexit are about – George Monbiot. 

Freedom is a word that powerful people use to shut down thought.

Propaganda works by sanctifying a single value, such as faith, or patriotism. Anyone who questions it puts themselves outside the circle of respectable opinion. The sacred value is used to obscure the intentions of those who champion it. Today, the value is freedom. Freedom is a word that powerful people use to shut down thought.

When thinktanks and the billionaire press call for freedom, they are careful not to specify whose freedoms they mean. Freedom for some, they suggest, means freedom for all. In certain cases, this is true. You can exercise freedom of thought, for instance, without harming others. In other cases, one person’s freedom is another’s captivity.

When corporations free themselves from trade unions, they curtail the freedoms of their workers. When the very rich free themselves from tax, other people suffer through failing public services. When financiers are free to design exotic financial instruments, the rest of us pay for the crises they cause.

Above all, billionaires and the organisations they run demand freedom from something they call “red tape”. What they mean by red tape is public protection. 

The Guardian

An Example for NZ. The Dutch GreenLeft party shows new ideas can turn the tide of populism – Rutger Bregman. 

Wake Up Andrew! Labour is fast becoming irrelevant. 

Let’s be honest, rightwing, anti-Islam populist Geert Wilders is this election’s real winner.

We seem to be forgetting that his party gained five additional seats in the Dutch parliament. And more importantly: over the past 10 years, Wilders has wrenched most of the other parties toward his position on the fringes – particularly the fiscally conservative People’s Party for Freedom and Democracy (VVD) and the culturally conservative Christian Democratic party (CDA), both mainstream parties with widespread support.

Suppose a denizen of the 1980s had stepped into a time machine and travelled to watch the runup to these Dutch elections. Imagine how surprised – or, more accurately, dismayed – they would be. So-called progressive and moderate politicians are currently making pronouncements that would have put them behind bars for inciting hate 30 years ago.

In 1997, a Dutch judge sentenced the far-right politician Hans Janmaat for saying “As soon as we have the power and the opportunity, we will eliminate multiculturalism.” Pretty tame compared to Wilders, who’s constantly denouncing “palaces of hatred” (mosques) and “Street terrorists” (Moroccan youth).

At the start of his campaign, current prime minister Mark Rutte of the VVD said he hated the idea of a “multicultural society”. Rutte hasn’t prevailed over the populist right, he has joined its ranks.

Remember: real politics isn’t about figureheads and seats in parliament. Real politics is about ideas. And there can be no doubt regarding the extreme ideas that have been gaining ground in the Netherlands for decades.

This election’s outcome also offers little that’s new on the economic front. A neoliberal, technocratic cabinet is departing, and a new one will take its place.

As always, the business-friendly VVD will cater to the banking and tobacco lobbies, big business and high finance. The more progressive D66 is still toeing the economic line of the 1990s. And this election barely touched on the real challenges of the 21st century: climate change, growing inequality and the rot at the heart of our banking industry.

So is there no hope? There’s always hope.

The Netherlands’ proportional democracy offers a wide menu of political flavours, and it functions significantly better than the US and British systems. And the party with the gravest dearth of ideas – the social-democratic Labour Party (PvdA) – has been mercilessly punished for it. Never before in Dutch history has a party lost so many seats.

Meanwhile, the big winners on the left are GreenLeft and the radical Party for the Animals (PvdD). Their victory isn’t enough to compensate for the swerve to the right, but it has increased the chance that the Netherlands will take serious new steps toward a sustainable economy.

The big question now is how we can turn the tide. How can history once again move in the other direction – the direction of bridges over walls, open over closed? As always, change will have to start with new ideas. Radical ones, because ideas tempered by “as long as” and “except for” won’t change the world. We now know where the strategy of the middle, of the Hillary Clintons, Tony Blairs and Lodewijk Asschers (the leader of the Dutch Labour party), leads: nowhere.

New ideas rarely come from the moderate parties in The Hague or Washington, in Brussels or Westminster. The world’s political centres are not the breeding ground for true change, but rather where it comes home to roost. Just as Wilders has been yanking the Netherlands rightward for years, Dutch politicians such as GreenLeft’s Jesse Klaver and Marianne Thieme of the Party for the Animals can pull things in the opposite direction. To do so, they can draw on new ideas – from a participatory democracy to a universal basic income, from a progressive system of taxation to a healthcare system based on cooperation and trust.

“This is not the end, but the beginning of our movement,” Klaver wrote yesterday. But for that to be true, it’s essential to avoid the freefall that has plagued the country’s Labour party since it joined the ranks of those in power: the plunge into moderation, into monotony, into wine watered down to the point of tastelessness.

Today, in the afterglow of the people’s endorsement, the heady aroma of power is understandably intoxicating. But consider this: the most influential Dutch politician of the past 15 years – Geert Wilders – has never been a part of the country’s ruling coalition.

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Rutger Bregman is the author of Utopia for Realists: And How We Can Get There

The Guardian

Europe’s Centre-Left Risks Irrelevance – Sheri Berman. 

JUST LIKE NEW ZEALAND’S, LABOUR NEEDS TO WISE UP!

Europe today is in crisis. Economically, much of the continent suffers from low growth, high unemployment and rising inequality, while politically, disillusionment with the European community as well as domestic institutions and elites is widespread. Partially as a result, right-wing populism is growing, increasing political instability and uncertainty even further. Although many have noted a correlation between the rise of populism and the decline of the social democratic or centre-left, the causal relationship between them has not been sufficiently stressed. Indeed, to a large degree the failures of the latter explain the surprising popularity of the former.

The historical role of the centre or social democratic left

Although the decline of social democracy and the rise of populism have become particularly noticeable since the financial crisis that began in 2008, the roots of both lie much earlier, in the 1970s. During this decade economic and social/cultural changes began unsettling long-standing voting and political patterns. Economically, the postwar order was running out of steam, and a noxious mix of unemployment and inflation hit Europe. However, social democrats lacked well thought out plans for getting economies moving again or for using the democratic state to protect citizens from the changes brought by ever-evolving capitalism.

Such plans, of course, had been precisely what social democracy had offered after 1945. Back then, social democrats had not only insisted that it was possible to reform and even improve capitalism – they devised concrete policy proposals for accomplishing this task. These policies enabled governments to contain and cushion the most destructive and destabilising consequences of markets without fettering them entirely. In contrast, during the late twentieth and early twenty-first centuries, social democrats offered either rearguard defences of socioeconomic policies that may have made sense decades ago but which are now out of touch with the realities of a changing global economy, or else watered-down versions of neoliberalism (such as the English “Third Way” or the German “Neue Mitte”) that left many citizens wondering why they should bother to vote for the social democratic or centre-left at all.

The absence of a distinctive, effective social democratic response to economic problems allowed a neoliberal right that had been organising and thinking about what it saw as the drawbacks of the postwar order to begin freeing capitalism from many of the restrictions that had been placed on it beginning in the 1970s. And this unfettered capitalism, in turn, not only helped create the financial crisis of the early twenty-first century, it also drove many voters to the populist right which explicitly promised to reign it in and protect “true” citizens from its harshest effects.

At the same time that European economies were changing, so were European societies. Social and cultural changes unleashed in the late 1960s threatened traditional identities, communities and mores, a process further exacerbated by growing immigration. Together these trends helped erode the social solidarity and sense of shared national purpose that had supported the social democratic postwar order and helped to stabilise European democracies in the decades following the Second World War.

Historically, social democrats recognised and indeed promoted social solidarity and a sense of shared national purpose, identifying these as necessary to the legitimacy of high taxes and a strong welfare state. During the last decades of the twentieth century, however, this basic fact was all too often forgotten or wished away by a centre or social democratic left that lacked distinctive, effective responses to the social, cultural and demographic changes that weakened the sense of solidarity and shared national purpose across one European country after another.

The absence of a distinctive, effective social democratic response to growing diversity allowed the extreme or multicultural left to become the loudest left-wing voice on this issue. This camp tends to see society as divided into irreconcilable groups, with different values and traditions all around. Efforts to find common ground or ease differences, in this view, are undesirable and counterproductive.

This emphasis on the “politics of recognition” – as opposed to the centre-left’s traditional emphasis on the “politics of redistribution” – was bad for the left and bad for democracy. It led many intellectuals away from a focus on economic issues and fragmented the left in a way that makes it hard to build majority coalitions and win elections. It also makes it almost impossible to generate the social solidarity or shared sense of national purpose that is necessary to support the rest of the centre-left agenda or healthy democracy more generally. And of course, a stress on the primacy of racial, religious, or sexual identity over class or even national identity, along with the implicit and often explicit denigration of those worried about the rapidly changing nature of their societies, has also helped to drive many voters to the nationalist, populist right.

The current crisis

It is now fairly commonplace to note the support given by traditionally left or social democratic voters to the populist right. This connection was on obvious display in the Brexit referendum, where many traditional Labour strongholds and supporters voted to leave the EU, and it has been a prominent feature of elections across the continent as working-class voters in particular have flocked to right-wing populist parties. And of course, a version of this was present in the United States, where Donald Trump garnered disproportionate support from less-educated and working-class voters. What is still worth stressing, however, is the causal connection between the failures or missteps of the centre or social democratic left and the rise of right-wing populism.

During the decades following the Second World war, centre-left and social democratic parties offered attractive solutions to the economic and social challenges facing European democracies. They promised citizens an economic order that neither erased capitalism (as many on the far left desired) nor gave it free rein (as classical liberals and contemporary neoliberals favour). Instead, they promised citizens the benefits of capitalist economic dynamism and innovation as well as to shield them from capitalism’s sometimes destructive effects.

The centre or social democratic left also promoted social solidarity and a sense of national purpose – welfare states would protect the health and well-being of all citizens and government would commit itself to creating an equal and prosperous society that benefited all. By the last decades of the twentieth century, however, the centre or social democratic left no longer had convincing responses to the most pressing economic and social challenges facing European societies, and voters accordingly began looking for other political alternatives.

For many former or traditionally left voters, the most attractive alternative turned out to be the populist right, which offered simple, straightforward solutions to citizens’ economic and social fears. Economically, the populist right promises to promote prosperity, via increased government control of the economy and limits on globalisation. Socially, the populist right promises to restore social solidarity and a sense of shared national purpose, by expelling foreigners or severely limiting immigration; diminishing the influence of the European Union, and protecting traditional values, identities and mores.

For those who bemoan the rise of the populist right, the challenge is clear: you can’t beat something with nothing and if the left can’t come up with more viable and attractive solutions to contemporary problems than those offered by its competitors it can expect to continue its slide into the dustheap of history.
Social Europe

The right is emboldened, yes. But it’s not in the ascendancy – Gary Younge. 

When there’s a cloud this large and foreboding no lining, silver or otherwise, will suffice. This was a year in which vulgarity, divisiveness and exclusion won – a triumph for dystopian visions of race, nation and ethnicity. Those thought dangerous and marginal are now not only mainstream, they have power. Immigrants and minorities are fearful, bigots are emboldened, discourse is coarsened. Progressive alternatives, while available, have yet to find a coherent electoral voice. You can polish this turd of a year all you like – it won’t stop it stinking to high heaven.

But while the prospects for hope are scarce there is, none the less, one thing from which we might draw solace. The right is emboldened but it is not in the ascendancy. The problem is that the centre has collapsed, and liberalism is in retreat. There is nothing to celebrate in the latter but there is much to ponder in the former. It suggests that this moment is less the product of some unstoppable force than the desperate choice of last resort.

Americans did not turn their backs on a bright new future but on a candidate offering more of the same at a time when the gap between rich and poor and black and white is growing. Nor did most of them vote for Donald Trump. Not only did he get fewer votes than Hillary Clinton, but he got a lower proportion of the eligible vote than Mitt Romney in 2012, John McCain in 2008, John Kerry in 2004 and Al Gore in 2000 – all of whom lost.

The Guardian 

Open Society Needs Defending – George Soros. 

Open societies are in crisis, and various forms of closed societies – from fascist dictatorships to mafia states – are on the rise. Because elected leaders failed to meet voters’ legitimate expectations and aspirations, electorates have become disenchanted with the prevailing versions of democracy and capitalism.

Well before Donald Trump was elected President of the United States, I sent a holiday greeting to my friends that read: “These times are not business as usual. Wishing you the best in a troubled world.” Now I feel the need to share this message with the rest of the world. But before I do, I must tell you who I am and what I stand for.

I am an 86-year-old Hungarian Jew who became a US citizen after the end of World War II. I learned at an early age how important it is what kind of political regime prevails. The formative experience of my life was the occupation of Hungary by Hitler’s Germany in 1944. I probably would have perished had my father not understood the gravity of the situation. He arranged false identities for his family and for many other Jews; with his help, most survived.

In 1947, I escaped from Hungary, by then under Communist rule, to England. As a student at the London School of Economics, I came under the influence of the philosopher Karl Popper, and I developed my own philosophy, built on the twin pillars of fallibility and reflexivity. I distinguished between two kinds of political regimes: those in which people elected their leaders, who were then supposed to look after the interests of the electorate, and others where the rulers sought to manipulate their subjects to serve the rulers’ interests. Under Popper’s influence, I called the first kind of society open, the second, closed.

The classification is too simplistic. There are many degrees and variations throughout history, from well-functioning models to failed states, and many different levels of government in any particular situation. Even so, I find the distinction between the two regime types useful. I became an active promoter of the former and opponent of the latter.

I find the current moment in history very painful. Open societies are in crisis, and various forms of closed societies – from fascist dictatorships to mafia states – are on the rise. How could this happen? The only explanation I can find is that elected leaders failed to meet voters’ legitimate expectations and aspirations and that this failure led electorates to become disenchanted with the prevailing versions of democracy and capitalism. Quite simply, many people felt that the elites had stolen their democracy.

Project Syndicate