What we can learn from Scandinavia about equality

A talk in Norway by one of the authors of the bestselling "Spirit Level" is highly revealing.

Anyone who has read The Spirit Level -- Richard Wilkinson and Kate Pickett's statistical bestseller explaining why greater equality results in happier, safer and generally nicer societies -- will know that many of the charts the authors produce plot income inequality from low to high along the x-axis, and some other health or social variable, such as teenage births or educational performance, along the y-axis.

And they will know that, on such charts, the Scandinavian countries almost always keep themselves out of trouble in the bottom left-hand corner of the graph. They have relatively low levels of inequality, and accordingly they are less afflicted by the problems to which Wilkinson and Pickett draw attention.

How intriguing, then, to attend a talk given by Richard Wilkinson in Oslo on Thursday, during the book's launch in Scandinavia. Would an argument that generally holds the Scandinavian model up as an exemplar hold up to scrutiny itself from Scandinavians?

 

Double-edged sword

There are certainly many people in Norway who would argue against the claims of The Spirit Level. In particular, the right-wing parties (FrP and Høyre) question the extent to which a highly redistributive social model is even any longer sustainable. Whetting the appetite further, it was one of their members of parliament, Torbjørn Røe Isaksen -- an exponent of Hayek -- who had been asked to respond to Wilkinson's talk.

And highly revealing it was, too. Many of the arguments Isaksen put forward were of the standard denialist nature (correlation is not the same as causation; there is no proof that redistribution actually creates better living conditions; and so on). Most of these critiques can be countered easily enough. His argument that new technologies available in the richest countries are allowing us to live longer, for example, is predicated on the marginal gains in life years enjoyed by a select group of individuals and entirely overlooks the opportunity cost of the years of life lost in rich societies as a result of the pursuit of those few extra months by the wealthiest.

Taken on its own terms, Isaksen's critique pointed to little more than the safe assumption that he is probably against health-care reform in the US.

But the broader implications of a Scandinavian politician's critique of Wilkinson and Pickett's thesis are both important and relevant to the present political moment in the UK. Not least, they ought to be given careful thought by those Labour politicians now brandishing The Spirit Level as a manual of good practice as they go about their electioneering.

First is the ease with which the findings of the book can be turned against it. The general logic underlying Isaksen's argument, for example, was that The Spirit Level was entirely correct in its diagnosis of the natural tendency to division in society and he was grateful (politically speaking) for the proof. Thus do all those painstakingly compiled (and painful to contemplate) charts put together by Wilkinson and Pickett become a tool in the opposition's hands.

Isaksen was more than happy to agree with Wilkinson's analysis of society's "natural" tendency to division, for example, because it allowed him to claim that, for this reason, there was no reason to believe that more redistribution would actually result in greater long-term equality.

This may be flawed reasoning, but neither pointing out the degree of inequality that arises under governments of the right (or of the left-neoliberalist persuasion) nor even -- it seems -- actually attaining a high degree of redistributive equality, as has been achieved in Scandinavia, appear to be capable of overcoming it. In the UK, for example, David Cameron has got on very nicely with his Broken Britain line. And in Norway, a fear of the power of the right's anti-redistribution agenda of the past ten to 15 years has led the Norwegian left to slash taxes on capital income and stockholders' dividends, while in power. As Magnus Marsdal of the think tank Manifest points out, Norway's Gini coefficient has been steadily rising as a result.

Second is the issue of what the arguments against greater redistribution of income most conspicuously overlook. Here, too, there are lessons for the UK, particularly in the context of discussion around the top rate of income tax and taxes on bonuses, say.

 

Principles of care

One of the things that has helped slow the effect of recent reversals in the actual amount of income redistributed in Norway, in particular, is the much greater sense of social cohesion that exists in the country. This is not the result of the shops there being shut on Sundays, or the lack of a financial sector, but the consequence of many years of redistributive policies reaching deep into the fabric of society and nourishing its bones.

Deep down, Norway and the other Scandinavian societies still have it right because there is a host of other social policies (affordable childcare and longer paternity leave for men among them) that are sustainable on the back of a redistributive economy, but which themselves provide the basis for a more caring society. And it is care -- as a political philosophy, and as most convincingly argued by the likes of the American scholar Joan Tronto -- that provides the basic capital for mending broken societies.

This is the argument that now needs to be won in the UK. The important points made by The Spirit Level cannot get us all the way there. Moreover, they are liable to be misappropriated by the right unless the left finds a way of mobilising popular consensus around what people have in common, as much as around the things they are divided by.

Wilkinson was given a telling-off during the questions that followed his talk for at times seeming to get caught up in the almost scientific nature of the social divisions he was describing. That was probably justified, as socio-economic tendencies are not natural laws, no matter how strong the correlation.

But in keeping with the spirit of his point -- that the relationship between inequality and social ills is at least entirely statistically significant, and more so, it is morally compelling -- perhaps we also need an easy way of remembering what it is that can help us overcome such inequalities: one that needs to be remembered, it seems, in Norway, Sweden and Denmark as much as it still needs to be learned in the UK.

So here it is. E=MC2: Equality = More Care Squared.

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Who is the EU's chief Brexit negotiator Michel Barnier?

The former French foreign minister has shown signs that he will play hardball in negotiations.

The European Commission’s chief Brexit negotiator today set an October 2018 deadline for the terms of Britain’s divorce from the European Union to be agreed. Michel Barnier gave his first press conference since being appointed to head up what will be tough talks between the EU and UK.

Speaking in Brussels, he warned that UK-EU relations had entered “uncharted waters”. He used the conference to effectively shorten the time period for negotiations under Article 50 of the Lisbon Treaty, the legal process to take Britain out of the EU. The article sets out a two year period for a country to leave the bloc.

But Barnier, 65, warned that the period of actual negotiations would be shorter than two years and there would be less than 18 months to agree Brexit.  If the terms were set in October 2018, there would be five months for the European Parliament, European Council and UK Parliament to approve the deal before a March 2019 Brexit.

But who is the urbane Frenchman who was handpicked by Commission President Jean-Claude Juncker to steer the talks?

A centre-right career politician, Barnier is a member of the pan-EU European People’s Party, like Juncker and German Chancellor Angela Merkel.

A committed European and architect of closer eurozone banking integration, Barnier rose to prominence after being elected aged just 27 to the French National Assembly.  He is notorious in Brussels for his repeated references to the 1992 Winter Olympics he organised in Albertville with triple Olympic ski champion Jean-Claude Killy.

He first joined the French cabinet in 1993 as minister of the environment. In 1995, Jacques Chirac made him Secretary of State for European Affairs, teeing up a long and close relationship with Brussels.

Barnier has twice served as France’s European Commissioner, under the administrations of Romano Prodi and José Manuel BarrosoMost recently he was serving as an unpaid special advisor on European Defence Policy to Juncker until the former prime minister of Luxembourg made him Brexit boss.“I wanted an experienced politician for this difficult job,” Juncker said at the time of Barnier, who has supported moves towards an EU army.

 

Barnier and the Brits

Barnier’s appointment was controversial. Under Barroso, he was Internal Market commissioner. Responsible for financial services legislation at the height of the crisis, he clashed with the City of London.

During this period he was memorably described as a man who, in a hall of mirrors, would stop and check his reflection in every one.

Although his battles with London’s bankers were often exaggerated, the choice of Barnier was described as an “act of war” by some British journalists and was greeted with undisguised glee by Brussels europhiles.

Barnier moved to calm those fears today. At the press conference, he said, “I was 20 years old, a very long time ago, when I voted for the first time and it was in the French referendum on the accession of the UK to the EU.

“That time I campaigned for a yes vote. And I still think today that I made right choice.”

But Barnier, seen by some as aloof and arrogant, also showed a mischievous side.  It was reported during Theresa May’s first visit to Brussels as prime minister that he was demanding that all the Brexit talks be conducted in French.

While Barnier does speak English, he is far more comfortable talking in his native French. But the story, since denied, was seen as a snub to the notoriously monolingual Brits.

The long lens photo of a British Brexit strategy note that warned the EU team was “very French” may also have been on his mind as he took the podium in Brussels today.

Barnier asked, “In French or in English?” to laughter from the press.

He switched between English and French in his opening remarks but only answered questions in French, using translation to ensure he understood the questions.

Since his appointment Barnier has posted a series of tweets which could be seen as poking fun at Brexit. On a tour of Croatia to discuss the negotiations, he posed outside Zagreb’s Museum of Broken Relationships asking, “Guess where we are today?”

 

 

He also tweeted a picture of himself drinking prosecco after Boris Johnson sparked ridicule by telling an Italian economics minister his country would have to offer the UK tariff-free trade to sell the drink in Britain.

But Barnier can also be tough. He forced through laws to regulate every financial sector, 40 pieces of legislation in four years, when he was internal market commissioner, in the face of sustained opposition from industry and some governments.

He warned today, "Being a member of the EU comes with rights and benefits. Third countries [the UK] can never have the same rights and benefits since they are not subject to same obligations.”

On the possibility of Britain curbing free movement of EU citizens and keeping access to the single market, he was unequivocal.

“The single market and four freedoms are indivisible. Cherry-picking is not an option,” he said.

He stressed that his priority in the Brexit negotiations would be the interests of the remaining 27 member states of the European Union, not Britain.

“Unity is the strength of the EU and President Juncker and I are determined to preserve the unity and interest of the EU-27 in the Brexit negotiations.”

In a thinly veiled swipe at the British, again greeted with laughter in the press room, he told reporters, “It is much better to show solidarity than stand alone. I repeat, it is much better to show solidarity than stand alone”.

Referring to the iconic British poster that urged Brits to "Keep Calm and Carry On” during World War Two, he today told reporters, “We are ready. Keep calm and negotiate.”

But Barnier’s calm in the face of the unprecedented challenge to the EU posed by Brexit masks a cold determination to defend the European project at any cost.

James Crisp is the news editor at EurActiv, an online EU news service.