An Introduction to An Introduction to Social Democracy Social Democracy

(Version 1.0) (Version 1.0)

Associate Professor Phua Kai Associate Professor Phua Kai LitLit

Monash University MalaysiaMonash University Malaysia

June 2015June 2015

Lecture Objectives Lecture Objectives What is Social Democracy?What is Social Democracy? What is the difference between Social What is the difference between Social

Democracy and Communism?Democracy and Communism? Social Democracy and good governanceSocial Democracy and good governance Social Democracy and the economy Social Democracy and the economy Social Democracy and social and cultural Social Democracy and social and cultural

policypolicy Success stories of Social DemocracySuccess stories of Social Democracy Social Democracy in the developing countriesSocial Democracy in the developing countries

What is “Social Democracy”?What is “Social Democracy”?Democracy = rule by the people Democracy = rule by the people

Social Democracy = a democratic Social Democracy = a democratic government that serves mainly to promote government that serves mainly to promote the welfare or well-being of the peoplethe welfare or well-being of the people

Social Democratic governments have been Social Democratic governments have been important in building the “Welfare State” in important in building the “Welfare State” in northern Europe (e.g. Sweden, Finland) and northern Europe (e.g. Sweden, Finland) and western Europe (e.g. Britain, Germany) western Europe (e.g. Britain, Germany)

What is the difference What is the difference between Social Democracy & between Social Democracy &

Communism? Communism?

The biggest difference: Social Democrats The biggest difference: Social Democrats emphasise emphasise popular DEMOCRACYpopular DEMOCRACY i.e. the i.e. the people actually choose their Government people actually choose their Government and have input into public policies that and have input into public policies that affect their lives.affect their lives.

Another big difference: Social Democrats Another big difference: Social Democrats believe in change through believe in change through NON-VIOLENT NON-VIOLENT REFORMREFORM. .

What is the difference between What is the difference between Social Democracy & Social Democracy &

Communism? Communism? Social Social DemocracDemocracyy

CommunisCommunismm

CommentsComments::

PoliticsPolitics Compete Compete for power for power through through electionselections

One party One party dictatorshidictatorshipp

Marx, Marx, Engels and Engels and Lenin Lenin influencedinfluenced

CommunisCommunismm

EconomEconomyy

Mixed Mixed economy economy

(some (some state state ownershipownership))

In the In the past: total past: total state state control of control of economyeconomy

CommunisCommunistt

countriescountries

today: today: China China

What is the difference between Social What is the difference between Social Democracy & Communism? Democracy & Communism?

Social Social DemocracyDemocracy

CommunismCommunism

SocialSocial May have May have Affirmative Affirmative Action for Action for some groups some groups (women, (women, minorities)minorities)

Special Special privileges for privileges for Communist Communist Party Party membersmembers

onlyonly

CulturaCultural l

Mass media is Mass media is largely free of largely free of

government government controlcontrol

Total Total government government control of control of mass mediamass media

Social Democracy and good Social Democracy and good governance governance

Democratic elections ensure that Democratic elections ensure that governments that perform poorly will be governments that perform poorly will be kicked out of office by the people. kicked out of office by the people.

Even though the Social Democratic Party of Even though the Social Democratic Party of Sweden has governed Sweden very well, it Sweden has governed Sweden very well, it has been voted out of office a few times by has been voted out of office a few times by the Swedish people. the Swedish people.

Social Democracy and the Social Democracy and the economy economy

Social Democratic governments favour a “mixed Social Democratic governments favour a “mixed economy” i.e. a market economy combined with some economy” i.e. a market economy combined with some degree of public ownership, with government regulation degree of public ownership, with government regulation of the economy.of the economy.

Market forces are made to work for the good of the Market forces are made to work for the good of the people i.e. full employment, low inflation and people i.e. full employment, low inflation and environmentally-sustainable growth.environmentally-sustainable growth.

Fiscal policy is used to reduce economic inequality e.g. Fiscal policy is used to reduce economic inequality e.g. free or highly-subsidised health, education, transport and free or highly-subsidised health, education, transport and housing for poor people, financial help for the poor housing for poor people, financial help for the poor through welfare payments or “conditional cash transfers” through welfare payments or “conditional cash transfers” (you receive public money only if you keep your kids in (you receive public money only if you keep your kids in school or get them vaccinated) school or get them vaccinated)

Social Democracy and the Social Democracy and the economy economy

Critics of Social Democracy often claim that this Critics of Social Democracy often claim that this leads to very high taxes and poor economic leads to very high taxes and poor economic performance.performance.

The facts are that the Swedish Social Democrats The facts are that the Swedish Social Democrats have managed their economy very well.have managed their economy very well.

High taxes are used to provide high quality social High taxes are used to provide high quality social services to all citizens e.g. free higher education in services to all citizens e.g. free higher education in the world class universities of Sweden. Other the world class universities of Sweden. Other examples: high quality day care centres & high examples: high quality day care centres & high quality primary education in Finland. The National quality primary education in Finland. The National Health Service of England has an 80% approval Health Service of England has an 80% approval rating even after nearly 70 years. rating even after nearly 70 years.

Social Democracy and Social Democracy and social and cultural policy social and cultural policy

Social Democrats believe in Social Democrats believe in “multiculturalism” i.e. tolerance and respect “multiculturalism” i.e. tolerance and respect for the cultural values and beliefs of others for the cultural values and beliefs of others (especially minority and immigrant groups).(especially minority and immigrant groups).

At the same time, efforts are made to At the same time, efforts are made to integrate immigrants and their children into integrate immigrants and their children into the larger society.the larger society.

The government actively takes action to The government actively takes action to reduce poverty and economic inequality, reduce poverty and economic inequality, and to promote equality between men and and to promote equality between men and women. women.

Success stories of Social Success stories of Social DemocracyDemocracy

Britain – the National Health Service (NHS). Established Britain – the National Health Service (NHS). Established in 1948.in 1948.

Finland – primary educationFinland – primary education

Sweden – welfare systemSweden – welfare system

Sweden – economy: a dynamic/competitive economy, Sweden – economy: a dynamic/competitive economy, with relatively low unemployment (the unemployed with relatively low unemployment (the unemployed are retrained so that they can find new jobs) are retrained so that they can find new jobs)

Sweden – women’s rights and minority rightsSweden – women’s rights and minority rights

Canada – multiculturalism and minority rights Canada – multiculturalism and minority rights

Social Democracy in the Social Democracy in the Developing CountriesDeveloping Countries

Ecuador – under the rule of President Rafael Correa (who Ecuador – under the rule of President Rafael Correa (who has a PhD in economics)has a PhD in economics)

Bolivia – under the rule of President Evo Morales (first Bolivia – under the rule of President Evo Morales (first indigenous Indian President)indigenous Indian President)

Chile – under the rule of President Michelle Bachelet Chile – under the rule of President Michelle Bachelet (former political prisoner and torture victim) (former political prisoner and torture victim)

Tanzania – the first president, Julius Nyerere, left a Tanzania – the first president, Julius Nyerere, left a legacy of national unity and absence of racial politics legacy of national unity and absence of racial politics (that blight other African countries such as Rwanda, (that blight other African countries such as Rwanda, Kenya and Nigeria) Kenya and Nigeria)

Other great Social Democratic political leaders: Jose Other great Social Democratic political leaders: Jose Mujica of Uruguay, Nelson Mandela of South Africa, Mujica of Uruguay, Nelson Mandela of South Africa, Lula da Silva of BrazilLula da Silva of Brazil

Successful management of the Successful management of the economy by the Swedish Social economy by the Swedish Social

Democrats:Democrats:

http://www.newstatesman.com/politics/2014/09/lessons-labour-http://www.newstatesman.com/politics/2014/09/lessons-labour-party-swedish-social-democrats-victoryparty-swedish-social-democrats-victory

Thank YouThank You