COLL P ., y s 0 c I E .......................................................... FABIAN PAMPHLET 565 .................................................... Socialism • by Tony Blair .......................................................... BRITISH LIBRARY OF POLITICAL AND ECONOMIC SCIENCE LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE 10, PORTUGAL STREET, LONDON WC2A 2HD 1ics, Marxism ant 21 0487883 3 :ialism .lmost two decades, the Left has felt itself on efensive. Having fashioned the post-war ...... _-•. • ' ,, 1 -_ _c.__] ___ _ ~ BRITISH LIBRARY OF POLITICAL AND ECONOMIC SCIENCE 10 Portugal Street, London WC2A 2HD The date for return is shown below unless the book is recalled for another reader. A fine will be charged if the book is returned after the due date. To renew, take the book to the Service Counter or telephone: 0171 -955 7225 70s pt all Lr ·ntury. In ng failed. ;titutions majority mitation, ~alth sertries and 1ance the Jositories m paying elves but ne under Ethics, Marxism anf socialism For almost two decades, the Left has felt itself on the defensive. Having fashioned the post-war consensus of 1945, its intellectual confidence became sapped by its own inner doubts, the problems of government in the 1960s and 1970s and the onslaught of the Right through Thatcherism. Ithad a choice in 1979: to accept defeat; to wait unchanged in the hope ofthe world turning back to it; or to change and rediscover its purpose. Essentially it split in all directions, in the process splitting the Labour Party, the main party of the Left. The great achievement first of N eil Kinnock and then of John Smith was to take the Labour Party back on course towards renewal. T T here have been three phases of political development this century. In the first, capitalism and the market were regarded as having failed. The majority lived in poverty and ignorance. So the great institutions of collective power were created and developed to give the majority access to opportunities previously denied -proper housing and sanitation, universal education; insurance against unemployment; a national health service free at the point of need; public ownership of essential industries and services; and a trade union movement with the legal freedom to advance the interests ofits membership at work. Government and state became repositories ofgreat power and public expenditure. In the second phase the majority became more prosperous, and began paying taxes and there was a reaction, not against the institutions themselves but against the manner in which their power was exercised, which came under attack in the name of the individual. 1 s to luc· ket tea tlth lto Reaction Now we are entering on a third phase. The limitations ofThatcherism are clear. The claims of an economic miracle have evaporated. Society is divided. The people are insecure. The public is once again ready to listen to notions associated with the Left-social justice, cohesion, equality of opportunity and community. They do not want to go back; they want to move on. The Left can lead this new popular mood but only ifit understands its nature and presents a clear vision of the country's future that is both radical and modern. In turn, this cannot be achieved unless it continues to regain the intellectual high ground, stating with clarity its true identity and historic mission. In doing so, it must show how this is not a break with its past or its traditions but, on the contrary, a rediscovery of their true meaning. Different strands There are two strands ofsocialist thought that have dominated the Left this century. One is based on the belief that socialism is a set of values or beliefs- sometimes called ethical socialism and closely allied to European Social Democracy. It does not deny the existence of class divisions but its definition of them is not time bound. The other is a quasi-scientific view ofsocialism that is based on a notion of economic determinism and a particular view of class. This is usually associated with Marxism and other parts of the Left grouped around a narrow view of class interests. The Labour Party has never been Marxist but it has been influenced by the second strand of thought. In particular, many student radicals and union activists of the 1960s and 1970s were reared in the belief that the ethical strand of socialism was weak and inadequate and that the economic determinist version based around class interests was harder edged and more radical. This second strand became entangled with various other elements of Left thought -syndicalism in the trade unions and the new movements around issues such as the environment and nuclear weapons (though in the latter their influence was always limited). It also believed strongly in 'activism'-the idea that the politically conscious few have to drag the politically unconscious many in the direction of the true faith. Ethics The main consequence which flowed from the influence ofthe second strand, was that when defeat came in 1979, one part of the Left then believed that the reason for defeat was that 'true' socialism had never been tried; and therefore instead of altering the path of the Left, it decided instead to plunge down the same path much more vigorously. But the first strand of thought was still there. Since 1983, it has come back into its own. Indeed, since the collapse of Communism, it has been the only 2 serious view of the Left's future that can remain. What is necessary now is to give it clarity and content. The socialism of Marx, of centralised state control of industry and production, is dead.Itmisunderstood the nature and development of a modern market economy; it failed to recognise that the state and public sector can become a vested interest capable of oppression as much as the vested interests ofwealth and capital; and it was based on a false view of class that became too rigid to explain or illuminate the nature of class division today. 3 Reasserting social-ism 2 By contrast, socialism as defined by certain key values and beliefs is not merely alive, it has a historic opportunity now to give leadership. The basis of such socialism lies in its view that individuals are socially interdependent human beings-that individuals cannot be divorced from the society to which they belong. It is, if you will, social-ism. I I t contains an ethical and subjective judgement that individuals owe a duty to one another and to a broader society-the Left view ofcitizenship. And it believes, objectively, that it is only through recognising that interdependence and by society as whole acting upon it -the collective power of all used for the individual good of each-that the individual's interest can be advanced. It does not set apart individual interests and the interests of society as the Tories do.Ittakes an enlightened view ofself-interest and regards it, broadly, as inextricably linked to the interests of society. It is from this combination ofanalysis ofthe world as it is and prescriptions of the means of changing it that the values of democratic socialism -social justice, the equal worth of each citizen, equality of opportunity, community- came. Time limited Once socialism is defined in this way as a set ofprinciples and beliefs, based around the notion of a strong and active society as necessary to advance the individual, rather than a set of narrow timebound class or sectional interests or particular economic prescriptions, then it can liberate itself, learning from its history rather than being chained to it. It then no longer confuses means such as wholesale nationalisation with ends: a fairer society and more productive economy. It can move beyond the battle between public and private sector and see the two as working in partnership. It can open itself up to greater pluralism ofideas and thought. The problem with an ideology based on a particular economic prescription or time-limited view of class is that it may be valid for one time, but quickly becomes historically redundant. Society or the economy changes and the dis 4 ciples of the ideology are left trying to fit the world to the ideology, not the ideology to the world. For example, there are at least three obvious changes in the post-war world. First, the economy is global and the trading future ofour economy is completely interlocked with those of our main trading partners. Economic isolation is neither desirable or feasible. Secondly, there has been an explosion in service industries coupled with the development of a consumer culture, where people regard themselves as economic consumers as well as producers. Third, the world ofwork has been revolutionised. Almost halfthe workforce are women. Many choose to work part time. The pattern of working hours has changed. People will change jobs several times in their lives. Above all, as a modern economy develops, the premium on knowledge and education becomes ever greater. It is now virtually a platitude to say that the success of a modern economy is built on the skill and talent ofits workforce but it is true nonetheless. It is the amount of value they can add to what they produce that is the key to overcoming competition from low wage or low skill competitors. Reclaiming the ground Yet we have failed to answer the scale of this challenge. Large numbers of people are still unskilled and under-educated. There are still frightening proportions of young adults who are both illiterate and innumerate. We have a higher education system that the majority fail to reach. We are in danger of dividing into two groups in the working population: those with careers and those withjobs. The former have some definable notion ofprogression; the latter are increasingly demoralised and demotivated, undervalued and often very poorly treated by a management style that is neither right nor, in the end, efficient. The old extreme Left has no real answer to those problems, believing that addressing them is a form ofcollusion with an irredeemably exploitative market system. The Right either ignores them or, in the case of bad management practice, endorses it. This is the chance for the Labour Party and the Left to capture the ground and language of opportunity for itself by policies that are entirely consistent with its traditional principles-namely intervening to equip and advance the individual's ability to prosper within this new economy-but applying them in a different way for the modern world. How it does so should be where the new thinking and ideas are developed, released from false ideological constraints. The result is not a policy vacuum or a retreat into philosophy rather than political action. It is, rather, the development of a new policy agenda and in many ways a broader one at that. 5 The broad agenda In economic terms, we need a new industrial policy that addresses the structural weaknesses of British industry; a new social partnership at work; absolute priority to education and skills as the means both of enhancing opportunity and creating an efficient economy; direct measures to reduce unemployment; rebuilding our infrastructure; and international co-operation at macroeconomic level to coordinate measures for stable and sustainable growth. In all these respects, society, through govemment but in many other ways, is acting to promote the public good. In other words, we are not trying to run a Tory economy with a bit of social compassion but acting to ensure the economic public interest is upheld. In social terms, we act to modernise our welfare state and eliminate poverty, to reduce levels of crime and to improve our environment and quality oflife. And we renew the way we govem ourselves, our outdated and decrepit constitution that now contains the worst features of the centralising tendency of govemment with unaccountable quangos and cartels taking over local services. A new settlement between citizen and society requires radical reform of our constitution and such reform should be pursued by a Labour Govemment with urgency. Itis not an issue ofinsignificance, relevant only to the chattering classes; it goes to the heart of the nature of power and the way it is abused in Britain today. Most of all, by reestablishing its core identity, the Labour Party and the Left can regain the intellectual selfconfidence to take on and win the battle ofideas. 6 Vision For too long, the Left has thought it has had a choice: to be radical but unacceptable or to be cautious and electable. W W hilst being 'radical' is defined as the old-style collectivism of several decades ago this may be true. But that is not really being radical at all; it is just neo-conservatism of the Left. Once being 'radical' is redefined as having a central vision based around principle but liberated from particular policy prescriptions that became confused with principle, then in fact being radical is the route to electability. Once the destination-a strong, united society which gives each citizen the chance to develop their potential to the full -is properly mapped out and the ideological compass reconstructed on true lines, the journey can be undertaken with vigour and confidence. We can then go out as a Party to build a new coalition of support, based on a broad national appeal that transcends traditional electoral divisions. The future will be decided not on the basis of pacts or deals or horsetrading between politicians or parties but through the power and energy of our ideas and our vision for the country. Ifthat vision for Britain is strong, ifit can create a popular movement in this country for change and national renewal and show how this can be achieved, then we will win; if we cannot, then no deal or pact can save us and neither does it deserve to. The Thatcherite project ofthe 1980s is over. The present government has no project, except political survival. As a result the country drifts without serious purpose or coherence ofdirection. The prospects for a regenerated left of centre have never been better, nor its duty to grasp them greater. It is time now to rediscover our central mission of social advance and individual achievement. This is a time in which we will make our own history; not power at the expense of principle, but power through principle and for the purpose of the common good. 7 ~ecent Fabian Publications Towards a social economy-trading for a social purpose. Peter Welch 1d Malcolm Coles. Pamphlet No 564 £3.50 May 1994 Outlines the European mcept of the 'economie sociale' and argues that it is a useful tool for the Left 1 escaping from the public/private debate. Fair Is Efficient -a socialist agenda for fairness. Cordon Brown MP. 'amphlet No 563 £3.50 April1994 Analyses inequality in Britain and concludes hat socialism and equality are the pre-requisites of economic efficiency. What Price a Safe Society? Proceedings ofthe 1994 New Year Conference. >amphlet No 562 £5.00 April1994. Collected essays on crime and punishment. Beyond the Town Hall: reinventing local government. Margaret '-Iodge and Wendy Thomson. Pamphlet No 561. £3.50 February 1994. Argues ;hat local government should once act as a conduit for change and a focus for .ocal pride. More Southern Discomfort: a year on -taxing and spending. Giles Radice and Stephen Pollard. Pamphlet No 560. £3.50. September 1993. Looks at attitudes to the Labour Party in the South of England and proposes ways of attracting floating voters back to the party. More Southern Discomfort. Giles Radice and Stephen Pollard Pamphlet No 560 £3.50. September 19932. Second instalment of Southern Discomfort series. All for one: the future of the unions. Philip Bassett and Alan Cave. Pamphlet No. 559. £3.50 August 1993. Argues that unions must emphasise the individual rather than the collective if they are to survive. Private Pensions for All: squaring the circle. Frank Field and Matthew Owen. Discussion Paper No 16. £10. July 1993. Proposes universal, compulsory private pensions. Euro-Monetarism: Why Britain was ensnared and how it should escape. Edward Balls. Discussion Paper No 14. £7.50. December 1992. Analyses the past 20 years' economic failure and argues for a Europe-wide growth strategy. Available from the Fabian Society, 11 Dartmouth Street, London, SWlH 9BN. Please make cheques payable to the Fabian Society. Socialism What does 'ethical socialism', the new buzz-phrase of the Left, mean? Why has Labour been out of power for so long? How can it win again? This analysis by Tony Blair outlines the history ofsocialist ideas in twentieth century Britain and concludes that Labour condemned itselfto an eventual period ofdefeat when it followed the time-limited Marxist analysis. It is, he argues, only now that ethical socialism has re-emerged as the unifying feature of socialism that Labour has once again established itself as the natural party for government. FABIAN Fabian Pamphlet £5.00 The Fabian Societybrings together those who wish to relate democratic socialism to practical plans for building a better society in a changing world. It is affiliated to the Labour Party, and anyone who is eligible for membership of the Labour Party can join; others may become associatE members. For details ofFabian membership, publications anc activities, write to: Simon Crine, General Secretary, Fabian Society, 11 Dartmouth St, London SWlH 9BN.