The Search for Equity: Welfare and Security in the Global Market

Citation

de Bruin, A. (2000), "The Search for Equity: Welfare and Security in the Global Market", International Journal of Social Economics, Vol. 27 No. 1, pp. 86-96. https://doi.org/10.1108/ijse.2000.27.1.86.4

This book is based on papers presented at the third “International Progressive Policy Conference” held in Brussels in March 1997 and organised by the editors. The Conference brought together a group with allegiance to the politics of the centre‐left, from the USA, Japan, Australia and Western Europe. The book therefore features contributions from policy makers in the trade union movement, research institutes, and think tanks aligned to the left of the political spectrum. The purpose of the book is to provide illumination on the question of “whether or not progressive politics remains a possibility in the era of globalisation” (p. 1). This illumination is, of course, in the light of the centre‐left leanings of the writers, who attempt to supply arguments to counter the fatalism of conservatives that widening inequality is an inevitability of a new global phase of capitalist development.

A total of 19 chapters, including an introduction by the editors, provide a wide coverage of issues. These range from the overarching global context of the social agenda and the response of the trade union movement, to the regional dimension of the European EMU, and the national level analysis of the “German (economic) model”, Japan’s welfare state and the UK, Norwegian and US tax regimes.

Broadly, the papers are grouped around four themes. First, the nature and demands of the new era of globalisation is dealt with in a series of contributions. The second theme of the book is comparative analysis of labour market experience and reform. The third focus is on taxation and public finance. Fourth, a group of shorter essays deals with new partnerships between trade unions and other important actors in today’s global society, such as NGOs.

In the initial contribution to the book’s first theme, John Evans stresses the need for a social dimension in the four priority areas: trade, investment and labour standards; reconciliation of efficiency and equity in the competitive labour market model; international economic coordination; and the public sector. Larsson builds on the theme by examining the relationship between social policy and economic performance.

The chapter by Guy Standing of the International Labour Organisation, who however writes for the book in a personal capacity, is most interesting and fits in with the second theme of the book by referring to a “Good Labour Market”. It then moves the discussion, however, to the firm level. Starting with the premise that both social equity and dynamic efficiency must be promoted, he proposes the term “Human Development Enterprise” (HDE) for the exemplary firm and in an exploratory exercise builds a “hierarchy of HDE Indexes”. He proposes the establishment of HDE award schemes as an incentive to move toward the “Good Enterprise”.

Bettina Agathonos‐Mahr’s chapter is one among several by trade unionists. It provides useful background on the issue of reduced working time and the different approaches to “life‐long working time” that have been adopted or are under discussion in various EU member states.

Two chapters in the book relate specifically to the German situation while Japan is the focus of two further contributions in the book. The articles on Japan are largely descriptive of existing conditions, which are bound to change with recent economic and political events in Japan and the region.

Of the two chapters on Germany, Hoffman discusses, in broad terms, the reasons why it appears that the once successful “German model”, which combined the interests of capital and of labour on a co‐operative basis, is disintegrating under the twin pressures of “Europeanisation” and “globalisation”. A generalised set of solutions is sketched out, including the “institutionally prescribed opportunity” (p. 48) of European developments (such as the EMU, the reduction of working time, and trade union policy requirements). The solutions offered place emphasis on “regulation” and “state‐run programmes” and are in keeping with the centre‐left theme. The other chapter, by Gansmann, provides a more detailed account of the possible causes of the German malaise. The transformation process of the former German Democratic Republic and the financial burden of unification take centre stage in the account. Failure of supply‐side policies is also stressed. True to the style of the left, the author rails against advocates of the NAIRU concept and in the Marxist tradition accuses Germany’s political and economic élites of “betraying the nation” (p. 160). Emotive language aside, the chapter makes no attempt to offer alternative arguments to counter the forward march of the élites and the restarting of the “class struggle from above”.

David Kusnet of the US Economic Policy Unit and Robert Taylor, Employment Editor for the Financial Times are the authors of the concluding chapter in the volume. Entitled “Economic growth and social justice in the global economy: political challenges, policy choices”, it is a fitting conclusion, drawing the threads of the themes together; it again stresses the need for a new unionism, fruitful social partnerships, restoration of civil society, and modernisation of the leftist “model” so as to transcend “the existing neo‐liberal and social market models”. It does well also to point to “the need for well‐designed tax reform, or structural and micro‐economic reform more generally” (p. 239). This statement is a judicious reminder in the face of the general critique of supply side policies in the book, and the particular condemnation of the US tax reform agenda in the chapter by Sawicky.

This book will probably go on the “must read” list for those active in the trade union movement. What this book does not successfully do, however, is provide any sort of a theoretical base to counter the neoclassical economic foundation of the right and provide a sturdy crook for the centre‐left to lean on. With the exception of Standing’s chapter, academics looking for ideas to help the cause of the left will find nothing new in the book. Admittedly, the chapter by Palley argues solidly why the US model is not the answer to prosperity and makes a strong contribution to the quality of the volume; but it has already been published in The Journal of Post‐Keynesian Economics. Nevertheless, it must be remembered that the editors, by their own admission, have no pretensions about the purpose of this volume. They state:

There is no doubt that conservative forces have drawn considerable sustenance from their international dialogue. We hope that this book will make a modest contribution to performing the same function for those on the centre‐left (p. 10).

This hope will surely be realised. The rapidly altering state‐capital‐labour relationship caught the labour movement and its supporters off‐guard. Increased networking and dialogue afforded by this book can only augur well for the cause of the centre‐left. The book will also serve to raise awareness that the low wage, minimal regulation route is not the only option in the new era of globalisation.