Social Democracy and global equality

by María Hevzy

In the 1990s conservative voices in Europe claimed that the Nordic welfare model, with high taxes and a strong public sector would lose in global competition. They also claimed that the welfare model was "unmodern" and that the modern and sustainable way to arrange society was to privatize public services. "New public management" was the fashionable phrase of the times.

However, it has not turned out the way they predicted. On the contrary, according to a report published by SAMAK (the forum for the Nordic cooperation between the social democrats and the trade union movement), the Nordic countries have in the recent years received top rankings in a number of surveys, in areas such as innovation, business climate, international competitiveness and living conditions. Additionally, unemployment rates are historically low in all the Nordic countries. How can that be?

To illustrate the answer to this, I will give you a few examples. The Norwegian welfare state we have today has come into being due to a set of political choices. It is a consciously chosen political direction. More importantly, behind these political choices there is a set of values; the social democratic values of freedom and equal opportunities for all.

These values are the same as the biblical principles of treating individuals with respect and consideration, regardless of their social or religious background (e.g. II Cor 8:13, Matt 25:34) These values have turned out to be sustainable even in
the context of global competition.

In creating this relatively equal society, the co-operation between the Labour Party and the Confederation of Trade Unions (LO) has been crucial. Through this cooperation we have achieved a number of social reforms. Among these are the introduction of a Worker Protection and Working Environment Act, industrial democracy, working hours regulations covering all workers, sickness benefit guaranteeing 100% compensation during sick leave, 52 weeks paid parental leave, and reforms of the education system making secondary education available to every 16-19 year old. The education system is one of the most important institutions in Norwegian society. The public school system (not private) is one of the most important tools we have in giving equal opportunities to all. We have few private schools in Norway. Children from all backgrounds have been sitting side by side, doing the same tasks, in the same classroom. Through this all children have been taught the same things from a national curriculum, ensuring equal education to all. This has also contributed to a sense of equality thinking that is in the core of Norwegian mentality: it is not fair that some should have lots and others little.

In the nineties, an incomes policy, with tripartite cooperation between the unions, employers and the Labour government (until October 1997), securing moderation in the annual collective bargaining, contributed to a formidable recovery of the Norwegian economy. This incomes policy has managed to accomplish a combination of a considerable reduction of unemployment, low inflation and low interest rates, an increase in real wages and expansion of public services.

When the right wing won the election in 2001, one of the first things they did in Government was to weaken workers’ rights. They also opened up to private schools, jeopardizing the public school system. They gave tax reductions and reduced the grants for the municipalities. This was a direct attack on the welfare system and the principles of equal opportunities to all. When the Norwegian Labour Party won the election in 2005, it was because the people wanted a new direction in politics. Even though all people did not, and do not consider themselves social democrats by definition, they want a social democratic direction in society.
In spite of a good private economy, people still choose fellowship over tax reductions.

Nevertheless, our fear is that the right wing's ideological view that people do best alone, will jeopardize our system. Thus far, they have not succeeded.

However, these examples illustrate that a welfare state, securing equal opportunities to all and freedom of choice for all, is not to be taken for granted. It matters who is behind the wheel. It matters what values we have as basis for the political choices we make.

Everything is not perfect in Norway. We do have inequality in many areas, and we need better services and more people to carry out all the important tasks. We are proud of what we have accomplished, but we cannot rest until we have reached our aims.

Why is it that strong welfare models are among the most competitive in a globalized world?
When all people have the right to education, the country’s competitiveness will be strong.
When parental leave and day care facilities for children are in place, more women can work and it leads to economic growth.
When workers have strong rights they dare to try new possibilities and do not fear changes.
This indicates that Social Democracy is the possibly best tool in creating just societies worldwide. It also indicates that Social Democracy gives the best economic development for all.

María Hevzy is working as a political advisor in the Norwegian Labour Party, as well as being the National Secretary of the Christian Socialist Movement in Norway. Her educational background is Theology, History, Middle Eastern Studies, Arabic, Christianity and Islam. Currently she is trying to finish a Masters thesis on the use of dialogue in peacemaking.

María Hevzy, 05/02/2009