An Introduction to Social Democracy (Version 1.0) Associate Professor Phua Kai Lit Monash University Malaysia June 2015

Lecture Objectives What is Social Democracy? What is the difference between Social Democracy and Communism? Social Democracy and good governance Social Democracy and the economy Social Democracy and social and cultural policy Success stories of Social Democracy Social Democracy in the developing countries

What is “Social Democracy”? Democracy = rule by the people Social Democracy = a democratic government that serves mainly to promote the welfare or well-being of the people Social Democratic governments have been important in building the “Welfare State” in northern Europe (e.g. Sweden, Finland) and western Europe (e.g. Britain, Germany)

What is the difference between Social Democracy & Communism? The biggest difference: Social Democrats emphasise popular DEMOCRACY i.e. the people actually choose their Government and have input into public policies that affect their lives. Another big difference: Social Democrats believe in change through NON-VIOLENT REFORM.

What is the difference between Social Democracy & Communism? Comments: Politics Compete for power through elections One party dictatorship Marx, Engels and Lenin influenced Economy Mixed economy (some state ownership) In the past: total state control of economy Communist countries today: China

What is the difference between Social Democracy & Communism? May have Affirmative Action for some groups (women, minorities) Special privileges for Communist Party members only Cultural Mass media is largely free of government control Total government control of mass media

Social Democracy and good governance Democratic elections ensure that governments that perform poorly will be kicked out of office by the people. Even though the Social Democratic Party of Sweden has governed Sweden very well, it has been voted out of office a few times by the Swedish people.

Social Democracy and the economy Social Democratic governments favour a “mixed economy” i.e. a market economy combined with some degree of public ownership, with government regulation of the economy. Market forces are made to work for the good of the people i.e. full employment, low inflation and environmentally-sustainable growth. Fiscal policy is used to reduce economic inequality e.g. free or highly-subsidised health, education, transport and housing for poor people, financial help for the poor through welfare payments or “conditional cash transfers” (you receive public money only if you keep your kids in school or get them vaccinated)

Social Democracy and the economy Critics of Social Democracy often claim that this leads to very high taxes and poor economic performance. The facts are that the Swedish Social Democrats have managed their economy very well. High taxes are used to provide high quality social services to all citizens e.g. free higher education in the world class universities of Sweden. Other examples: high quality day care centres & high quality primary education in Finland. The National Health Service of England has an 80% approval rating even after nearly 70 years.

Social Democracy and social and cultural policy Social Democrats believe in “multiculturalism” i.e. tolerance and respect for the cultural values and beliefs of others (especially minority and immigrant groups). At the same time, efforts are made to integrate immigrants and their children into the larger society. The government actively takes action to reduce poverty and economic inequality, and to promote equality between men and women.

Success stories of Social Democracy Britain – the National Health Service (NHS). Established in 1948. Finland – primary education Sweden – welfare system Sweden – economy: a dynamic/competitive economy, with relatively low unemployment (the unemployed are retrained so that they can find new jobs) Sweden – women’s rights and minority rights Canada – multiculturalism and minority rights

Social Democracy in the Developing Countries Ecuador – under the rule of President Rafael Correa (who has a PhD in economics) Bolivia – under the rule of President Evo Morales (first indigenous Indian President) Chile – under the rule of President Michelle Bachelet (former political prisoner and torture victim) Tanzania – the first president, Julius Nyerere, left a legacy of national unity and absence of racial politics (that blight other African countries such as Rwanda, Kenya and Nigeria) Other great Social Democratic political leaders: Jose Mujica of Uruguay, Nelson Mandela of South Africa, Lula da Silva of Brazil

Successful management of the economy by the Swedish Social Democrats: http://www.newstatesman.com/politics/2014/09/lessons-labour-party-swedish-social-democrats-victory Successful management of the economy by the Swedish Social Democrats:

Thank You