In Scotland, Labour faces replacement by nationalists. Photo: Getty
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Social democrats face irrelevance at best, extinction at worse

Labour could find itself in office come May, but without the power to act. Social democrats everywhere need to understand the crisis they are in and how much they need to change.

Is social democracy already dead and like the proverbial headless chicken are we simply running round the yard on instinct before we topple over for good? If social democracy is still alive, it’s hard to know how or why. Let’s look at the evidence.

No social democratic party anywhere in the world is on the front foot. Sure, parties may find themselves in government – as they do in Denmark, Germany and France, in their own right or as part of a coalition – but this happens by accident and tends to be down to the failures of the right. And in office, social democrats tend to follow austerity or austerity-lite measures.  No social democratic party has a strident and confident set of intellectual and organisational ideas that propel a meaningful alternative political project. The future looks incredibly bleak. Why?

The reasons are not hard to find.  Social democracy is a 19th-century construct that achieved some successes in the 20th-century but is hopelessly prepared for the 21st century. This is because all the forces that once made social democrats strong have disappeared. The collective experience of the war, the existence of a unified, organised and seemingly growing working class and the brooding presence of the Soviet Union – a threatening alternative to free markets that forced big concessions from employers who feared revolution happening in the West – all combined to ensure that capitalism momentarily made historic compromises with social democratic parties. 

With hindsight, this "golden era" should be viewed as a historic blip but social democrats have continued to mistake it as the norm. They then compound this error to devastating effect. Having lost their external sources of power, they focus almost entirely on electing ‘the right leaders’ who, they believe, will re-enact the ‘golden era’ from above. This is a technocratic politics devoid of movements, any understanding of historic context or the geo-politics that shapes the everyday actions of politicians and people alike. Social democrats are surfers without waves.

But time has not stood still. The 20th-century underpinnings of social democracy have not just evaporated, but have been replaced by other hostile forces. Globalisation and individualisation act as pincers to further restrict the possibilities of any social democratic renewal. Globalisation – the flight of capital and the downward pressure on taxes and regulation it engenders – signals the death knell of socialism in one county. Meanwhile, individualism and the culture of turbo-consumption make social solidarity difficult to say the least.  In such a world, not only have we thankfully lost the sense of deference that made much of the paternalistic social democracy of the last century possible, but the good life has become something to be purchased by the lone consumer and not collectively created by the citizen. The endless formation and reformation of our identities through competitive consumption destroys the very social fabric that social democracy needs to take root. Today, it would seem, there is no alternative.

The brief upturn in the electoral fortunes of social democrats in the mid 1990s around the third way, the new middle and Clintonism was won at the expense of the further erosion of an increasingly ignored electoral base. In the mistaken belief it had nowhere else to go, core support was traded for core values and reliance pinned on a dysfunctional financialised capitalism that backfired spectacularly in 2008 with social democrats caught with their fingers in the neo-liberal till.

This existential crisis of social democracy finds its ultimate expression in the continuing crisis of capitalism. If the historic goal of social democracy is to humanise capitalism, then the way in which public finances have been used to bail out the banks at the expense of the people who are capitalism’s victims, proves the paucity of the social democrat position.

Where the crisis hit hardest, the social democrats fell furthest and fastest. Today PASOK in Greece barely exists. The PSOE in Spain are fairing badly and have ben overtaken in the polls by Podemos – a party less than a year old! In Scotland, Labour faces replacement by nationalists. Everywhere else, social democrats struggle as populism and an anti-politics mood sweeps Europe.

All of this is obvious. But social democrats seem unable to do anything more than shrug and go back to the same orthodoxies. They push at the edges of fiscal and regulatory boundaries but never really break with the constraints of neo-liberalism. They act as if the same class divisions existed, still take their core voters for granted and behave as if the planet wasn’t finite. They vie for office, to pull leavers that have long since rusted and ceased up. The baggage of the past just seems too heavy to let go.  Adopting Einstein’s definition of insanity – they do the same thing again and again and expect a different outcome.

So what is to be done? Social democrats are going to have to be brave – really brave – or face irrelevance at best, extinction at worse. There are three key challenges.

The first challenge is to redefine the meaning of the good society. Social democracy has focussed for too long on the material. Yes we want greater equality, but does that mean just more and more consumption in a race that can never be won? If the workers plasma TV can never be big enough then capitalism always win. The the treadmill of competitive consumption simply undermines any hope for social solidarity as much as it wrecks the environment. Instead of more things we didn’t know we wanted, paid for with money we don’t have, to impress people we don’t know, social democrats are going have to talk about more of other things – more time, public space, clean air, community and autonomy.  This suggests a politics of working time limits, workplace democracy and ownership, a citizen’s income and stringent carbon controls.

The second challenge is a radical shift in terms of internationalism. If capitalism has gone beyond the nation, then social democracy has no option but to follow. It needs to regulate and control markets wherever they do damage to people or the planet. Yes this is difficult, and yes it means surrendering sovereignty. But power is empty if wielded at the national level when economic decisions are being made in other countries and on other continents. The politics of this would start at a European level around issues like a continent wide minimum wages and corporation tax rates. 

The third challenge is cultural. Social democrats are going to have to let go. There is no place for elected vanguards, who do things to people and for them. Social democrats are going to have to know their new place as just one source of empowerment for citizens. Instead of pulling policy levers, the job is to create the platforms so that people can collectively change things for themselves. This is a more humble role, but essential and entirely possible in a networked society in which the internet has become the main nexus for human culture. Parties need to open up and out. They need to see themselves as simply part of much wider alliances for change, and not the sole repository of all wisdom and action. Parties are going to have to become really democratic, localising power and building platforms for collaboration around things like energy, loans and new media.

These challenges are huge and the scale of transformation enormous. Think of the sudden the fall of Kodak and the rise on Instagram. Can the challenges be met? We simply don’t know. While we mustn’t underestimate the scale of the transformation necessary to make social democracy relevant to the 21st century, neither should we underestimate our capacity for change. Decline is not inevitable. Energy is out there but social democrats are going to have to find out new ways to tap into it. Everything is down to the political decisions we make. A new political alliance can be built out of the resource poor and their time poor alter egos.  But the clock is ticking and we have been warned.

Neal Lawson is chair of the good society pressure group Compass. His most recent publication, with Indra Adnan, is "New Times: how a politics of networks and relationship can deliver a good society" 

Neal Lawson is chair of the pressure group Compass, which brings together progressives from all parties and none. His views on internal Labour matters are personal ones. 

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Is Scottish Labour on the way back, or heading for civil war?

There are signs of life, but also recriminations.

The extraordinary rise of the Scottish Tories and the collapse in SNP seat numbers grabbed most of the headlines in the recent general election. Less remarked on was the sudden, unexpected exhalation of air that came from what was thought to be the corpse of Scottish Labour.

In 2015, Labour lost 40 of its 41 Scottish seats as the SNP rocketed from six to 56, was wiped out in its Glaswegian heartlands, and looked to have ceded its place as the choice of centre-left voters – perhaps permanently – to the Nationalists. But while the electorate’s convulsion in June against the SNP’s insistence on a second independence referendum most benefited Ruth Davidson, it also served to reanimate Labour.

The six seats grabbed back (making a total of seven) included three in the West of Scotland, proving that the Nat stranglehold on Labour’s territory was not quite as secure as it had seemed. There is, it appears, life in the old dog yet.

Not only that, but the surprise success of Jeremy Corbyn across the UK has stiffened Labour’s spine when it comes to insisting that it, and not the SNP, is the rightful home of Scotland’s socialists.

Corbyn was largely kept south of the border during the election campaign – Kezia Dugdale, the leader at Holyrood, had supported Owen Smith’s leadership challenge. But in August, Corbyn will embark on a five-day tour of marginal SNP constituencies that Labour could potentially take back at the next election. The party has set a target of reclaiming 18 Scottish seats as part of the 64 it needs across Britain to win a majority at Westminster. The trip will focus on traditional areas such as Glasgow and Lanarkshire, where tiny swings would return seats to the People’s Party. Dugdale is no doubt hoping for some reflected glory.

Corbyn will present himself as the authentically left-wing choice, a leader who will increase public spending and invest in public services compared to the austerity of the Tories and the timidity of the SNP. “Labour remains on an election footing as a government-in-waiting, ready to end failed austerity and ensure that Scotland has the resources it needs to provide the public services its people deserve,” he said. “Unlike the SNP and the Tories, Labour will transform our economy through investment, insisting that the true wealth creators - that means all of us – benefit from it.”

The SNP has benefited in recent years from the feeling among many north of the border that Labour and the Tories were committed to differing shades of a similar economic programme, that was starving public services of cash and that paid little attention to Scottish desires or needs. But as the Nats’ spell in government in Edinburgh has worn on, first under Alex Salmond and now Nicola Sturgeon, with little being done to tackle the nation’s social problems, patience has started to run out.

Dugdale said yesterday that she “looked forward to joining Jeremy in August as we take our message to the people of Scotland”. That’s not a sentiment we would have heard from her before June. But it does raise the future spectacle of Davidson’s Tories battling for the centre and centre-right vote and Labour gunning for the left. The SNP, which has tried to be all things to all people, will have to make a choice – boasting that it is “Scotland’s Party” is unlikely to be enough.

The 20th anniversary of the referendum that delivered the Scottish Parliament is almost upon us. Then, Scottish Labour provided the UK and the Westminster government with figures of the stature of Gordon Brown, Robin Cook, Donald Dewar and George Robertson. That was a long time ago, and the decline in quality of Labour’s representatives both in London and Edinburgh since has been marked. The SNP’s decade of success has attracted much of the brightest new talent through its doors. Young Scots still seem to be set on the idea of independence. Labour has a credibility problem that won’t be easily shaken off.

But still, the body has twitched – perhaps it’s even sitting up. Is Scottish Labour on the way back? If so, is that down to the SNP’s declining popularity or to Corbyn’s appeal? And could Dugdale be a convincing frontwoman for a genuinely left-wing agenda?

There may be trouble ahead. Yesterday, the Scottish Labour Campaign for Socialism – whose convener, Neil Findlay MSP, ran Corbyn’s leadership campaign in Scotland – accused Dugdale of “holding Corbyn back” in June. A spokesperson for the group said: “While it’s great we won some seats back, it’s clear that the campaign here failed to deliver. While elsewhere we've seen people being enthused by ‘for the many, not the few’ we concentrated on the dispiriting visionless ‘send Nicola a message’ – and paid a price for that, coming third in votes and seats for the first time in a century. In Scotland we looked more like [former Scottish leader] Jim Murphy’s Labour Party than Jeremy Corbyn’s – and that isn’t a good look.”

While the group insists this isn’t intended as a challenge to Dugdale, that might change if Corbyn receives a rapturous reception in August. We’ll learn then whether Scotland is falling for the high-tax, high-spending pitch that seems to be working so well elsewhere, and whether Scottish Labour has jerked back to life only to find itself staring down the barrel of a civil war.

Chris Deerin is the New Statesman's contributing editor (Scotland).