1. History of Social Democracy (Version 1.0) Associate Professor Phua Kai Lit Monash University Malaysia July 2015

2. Lecture Objectives What is Social Democracy? What is Social Democracy? Historical roots Historical roots World War One, Social Democracy and Communism World War One, Social Democracy and Communism Differences between Social Democracy and Communism Differences between Social Democracy and Communism Social Democracy during the Great Depression Social Democracy during the Great Depression Social Democracy (1945 – 1973) Social Democracy (1945 – 1973) Social Democracy and neoliberalism Social Democracy and neoliberalism Social Democracy today – Scandinavia Social Democracy today – Scandinavia Social Democracy today – developing countries Social Democracy today – developing countries

3. What is “Social Democracy”? Democracy = rule by the people Democracy = rule by the people Social Democracy = a democratic government that serves mainly to promote the welfare or well-being of 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) 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)

4. Historical Roots The socialist movement arose in direct response to the serious social problems associated with industrialisation and urbanisation in Europe. The socialist movement arose in direct response to the serious social problems associated with industrialisation and urbanisation in Europe. Social problems arising from industrialisation & urbanisation: very bad working and living conditions (low pay, long working hours, unsafe working conditions, child labour; poor quality housing – no proper water supply, poor sanitation, overcrowding, damp, filthy/polluted environment) Social problems arising from industrialisation & urbanisation: very bad working and living conditions (low pay, long working hours, unsafe working conditions, child labour; poor quality housing – no proper water supply, poor sanitation, overcrowding, damp, filthy/polluted environment) The socialist movement pushed for better pay and better working conditions, and the right to form trade unions The socialist movement pushed for better pay and better working conditions, and the right to form trade unions The socialists became especially strong in Germany The socialists became especially strong in Germany

5. World War One, Social Democracy and Communism Disagreement over participation in World War One led to the split in the socialist movement between Social Democrats and Communists in European countries Disagreement over participation in World War One led to the split in the socialist movement between Social Democrats and Communists in European countries German Social Democrats mostly supported the participation of their armed forces in World War One. German Communists strongly opposed this. German Social Democrats mostly supported the participation of their armed forces in World War One. German Communists strongly opposed this. This was also the case in France. However, the French socialist leader (Jean Jaures), a social democrat, was assassinated for opposing participation in World War One. This was also the case in France. However, the French socialist leader (Jean Jaures), a social democrat, was assassinated for opposing participation in World War One.

6. 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. 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. Another big difference: Social Democrats believe in change through NON-VIOLENT REFORM.

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

8. What is the difference between Social Democracy & Communism? Social Democracy Communism Social 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

9. Social Democracy during the Great Depression The Great Depression beginning in 1929 further exacerbated the split between Social Democrats and Communists The Great Depression beginning in 1929 further exacerbated the split between Social Democrats and Communists Communists argued that economic policy should follow that of the Soviet Union under Stalin i.e. collectivisation of agriculture and state-controlled industrialisation in a “command economy” Communists argued that economic policy should follow that of the Soviet Union under Stalin i.e. collectivisation of agriculture and state-controlled industrialisation in a “command economy” Social Democrats were divided between those who advocated austerity (e.g. Ramsay MacDonald in UK) and those who favoured greatly increasing spending on social services & more government regulation of the economy Social Democrats were divided between those who advocated austerity (e.g. Ramsay MacDonald in UK) and those who favoured greatly increasing spending on social services & more government regulation of the economy

10. Social Democracy 1945-1973 The Great Depression resulted in the rise of Nazism and Fascism in Germany and Italy. Other countries such as France and Spain also had strong fascist movements. Fascism was also strong in Hungary and Romania. The Great Depression resulted in the rise of Nazism and Fascism in Germany and Italy. Other countries such as France and Spain also had strong fascist movements. Fascism was also strong in Hungary and Romania. After the defeat of fascism in 1945, governments in Western Europe followed Keynesian and welfare state policies from 1945 to the late 1970s. After the defeat of fascism in 1945, governments in Western Europe followed Keynesian and welfare state policies from 1945 to the late 1970s. The rise of Margaret Thatcher in UK (1979) and Ronald Reagan in USA (1980) launched the right- wing assault against Social Democracy and the welfare state. Thatcher wanted to “roll back socialism” whilst Reagan wanted to “get government off the backs of the people”. The rise of Margaret Thatcher in UK (1979) and Ronald Reagan in USA (1980) launched the right- wing assault against Social Democracy and the welfare state. Thatcher wanted to “roll back socialism” whilst Reagan wanted to “get government off the backs of the people”.

11. Social Democracy and neoliberalism Neoliberalism: an ideology that believes in the “magic of the free market”, strongly opposes government regulation of the economy. It also favours privatisation and low public spending on social services. The intellectual victory of pro-market economic thought (as advocated by people such as Friedrich von Hayek and Milton Friedman) over Keynesian economic thought was Milton Friedman) over Keynesian economic thought was responsible for the rise and present strength of responsible for the rise and present strength of neoliberalism. neoliberalism. Some Social Democrats have even adopted aspects of neoliberalism e.g. Tony Blair’s “Third Way” Labour Party social democracy in the UK.

12. Social Democracy today - Scandinavia Social Democracy remains strong in Scandinavia today e.g. Sweden, Norway, Finland. Scandinavian Social Democrats continue to defend and build on the achievements of the welfare states they have constructed in their respective countries. The Scandinavian countries are among the best governed in the world. They also show excellent health and education indicators. Their standards of living are also high.

13. Social Democracy today - Developing Countries Social Democratic leaders are achieving results in developing countries e.g. 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) Brazil – under the Presidency of Lula da Silva (introduced the Bolsa Familia to help poor families) 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) Costa Rica, Mauritius.

14. Examples of Social Democratic political parties Swedish Social Democratic Party (SAP) Social Democratic Party of Germany (SPD) Socialist Party of France (PS) New Democratic Party of Canada (NDP) Social Democratic Party of Japan Democratic Action Party of Malaysia Labour Party of Mauritius All these are member parties of the Socialist International

15. Thank You