Third way (centrism)
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The Third Way is a
centrist Centrism is a political outlook or position involving acceptance or support of a balance of social equality and a degree of social hierarchy while opposing political changes that would result in a significant shift of society strongly to the l ...
political position A political spectrum is a system to characterize and classify different political positions in relation to one another. These positions sit upon one or more geometric axes that represent independent political dimensions. The expressions politi ...
that attempts to reconcile
right-wing Right-wing politics describes the range of political ideologies that view certain social orders and hierarchies as inevitable, natural, normal, or desirable, typically supporting this position on the basis of natural law, economics, authorit ...
and
left-wing Left-wing politics describes the range of political ideologies that support and seek to achieve social equality and egalitarianism, often in opposition to social hierarchy. Left-wing politics typically involve a concern for those in soci ...
politics by advocating a varying synthesis of
centre-right Centre-right politics lean to the Right-wing politics, right of the Left–right politics, political spectrum, but are closer to the Centrism, centre. From the 1780s to the 1880s, there was a shift in the Western world of social class structure a ...
economic policies The economy of governments covers the systems for setting levels of taxation, government budgets, the money supply and interest rates as well as the labour market, national ownership, and many other areas of government interventions into the e ...
with
centre-left Centre-left politics lean to the left on the left–right political spectrum but are closer to the centre than other left-wing politics. Those on the centre-left believe in working within the established systems to improve social justice. The c ...
social policies Social policy is a plan or action of government or institutional agencies which aim to improve or reform society. Some professionals and universities consider social policy a subset of public policy, while other practitioners characterize soci ...
. The Third Way was born from a re-evaluation of political policies within various centre to centre-left progressive movements in the 1980s in response to doubt regarding the economic viability of the state and the perceived overuse of economic interventionist policies that had previously been popularised by
Keynesianism Keynesian economics ( ; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomic theories and models of how aggregate demand (total spending in the economy) strongly influences economic output ...
, but which at that time contrasted with the rise of popularity for
neoliberalism Neoliberalism (also neo-liberalism) is a term used to signify the late 20th century political reappearance of 19th-century ideas associated with free-market capitalism after it fell into decline following the Second World War. A prominent fa ...
and the
New Right New Right is a term for various right-wing political groups or policies in different countries during different periods. One prominent usage was to describe the emergence of certain Eastern European parties after the collapse of the Soviet Uni ...
starting in the late 1970s and throughout the 1980s.Lewis, Jane; Surender, Rebecca (2004). ''Welfare State Change: Towards a Third Way?'' Oxford University Press. pp. 3–4, 16. The Third Way has been promoted by
social liberal Social liberalism (german: Sozialliberalismus, es, socioliberalismo, nl, Sociaalliberalisme), also known as new liberalism in the United Kingdom, modern liberalism, or simply liberalism in the contemporary United States, left-liberalism ...
and
social-democratic Social democracy is a Political philosophy, political, Social philosophy, social, and economic philosophy within socialism that supports Democracy, political and economic democracy. As a policy regime, it is described by academics as advocati ...
parties.Whyman, Philip (2005). ''Third Way Economics: Theory and Evaluation''. Springer. . In the United States, a leading proponent of the Third Way was
Bill Clinton William Jefferson Clinton ( né Blythe III; born August 19, 1946) is an American politician who served as the 42nd president of the United States from 1993 to 2001. He previously served as governor of Arkansas from 1979 to 1981 and agai ...
, who served as the country's president from 1993 to 2001. In the United Kingdom, Third Way social-democratic proponent
Tony Blair Sir Anthony Charles Lynton Blair (born 6 May 1953) is a British former politician who served as Prime Minister of the United Kingdom from 1997 to 2007 and Leader of the Labour Party from 1994 to 2007. He previously served as Leader of th ...
claimed that the
socialism Socialism is a left-wing economic philosophy and movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to private ownership. As a term, it describes the e ...
he advocated was different from traditional conceptions of socialism and said: "My kind of socialism is a set of values based around notions of
social justice Social justice is justice in terms of the distribution of wealth, opportunities, and privileges within a society. In Western and Asian cultures, the concept of social justice has often referred to the process of ensuring that individuals fu ...
. ... Socialism as a rigid form of
economic determinism Economic determinism is a socioeconomic theory that economic relationships (such as being an owner or capitalist, or being a worker or proletarian) are the foundation upon which all other societal and political arrangements in society are based. ...
has ended, and rightly." Blair referred to it as a "social-ism" involving politics that recognised individuals as socially interdependent and advocated social justice, social cohesion, equal worth of each citizen and equal opportunity. Third Way social-democratic theorist
Anthony Giddens Anthony Giddens, Baron Giddens (born 18 January 1938) is an English sociologist who is known for his theory of structuration and his holistic view of modern societies. He is considered to be one of the most prominent modern sociologists and is t ...
has said that the Third Way rejects the state socialist conception of socialism and instead accepts the conception of socialism as conceived of by
Anthony Crosland Charles Anthony Raven Crosland (29 August 191819 February 1977) was a British Labour Party politician and author. A social democrat on the right wing of the Labour Party, he was a prominent socialist intellectual. His influential book '' The ...
as an ethical doctrine that views social democratic governments as having achieved a viable
ethical socialism Ethical socialism is a political philosophy that appeals to socialism on ethical and moral grounds as opposed to consumeristic, economic, and egoistic grounds. It emphasizes the need for a morally conscious economy based upon the principles of ...
by removing the unjust elements of capitalism by providing social welfare and other policies and that contemporary socialism has outgrown the
Marxist Marxism is a Left-wing politics, left-wing to Far-left politics, far-left method of socioeconomic analysis that uses a Materialism, materialist interpretation of historical development, better known as historical materialism, to understand S ...
claim for the need of the abolition of
capitalism as a mode of production Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, priva ...
. In 2009, Blair publicly declared support for a "new capitalism". The Third Way supports the pursuit of greater
egalitarianism Egalitarianism (), or equalitarianism, is a school of thought within political philosophy that builds from the concept of social equality, prioritizing it for all people. Egalitarian doctrines are generally characterized by the idea that all hu ...
in society through action to increase the distribution of skills, capacities and productive endowments while rejecting
income redistribution Redistribution of income and wealth is the transfer of income and wealth (including physical property) from some individuals to others through a social mechanism such as taxation, welfare, public services, land reform, monetary policies, confis ...
as the means to achieve this. It emphasises commitment to
balanced budget A balanced budget (particularly that of a government) is a budget in which revenues are equal to expenditures. Thus, neither a budget deficit nor a budget surplus exists (the accounts "balance"). More generally, it is a budget that has no budge ...
s, providing
equal opportunity Equal opportunity is a state of fairness in which individuals are treated similarly, unhampered by artificial barriers, prejudices, or preferences, except when particular distinctions can be explicitly justified. The intent is that the important ...
which is combined with an emphasis on
personal responsibility In philosophy, moral responsibility is the status of morally deserving praise, blame, reward, or punishment for an act or omission in accordance with one's moral obligations. Deciding what (if anything) counts as "morally obligatory" is a pri ...
, the
decentralisation Decentralization or decentralisation is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group. Conce ...
of government power to the lowest level possible, encouragement and promotion of
public–private partnership A public–private partnership (PPP, 3P, or P3) is a long-term arrangement between a government and private sector institutions.Hodge, G. A and Greve, C. (2007), Public–Private Partnerships: An International Performance Review, Public Administ ...
s, improving
labour supply In mainstream economic theories, the labour supply is the total hours (adjusted for intensity of effort) that workers wish to work at a given real wage rate. It is frequently represented graphically by a labour supply curve, which shows hypotheti ...
, investment in
human development Human development may refer to: * Development of the human body * Developmental psychology * Human development (economics) * Human Development Index, an index used to rank countries by level of human development * Human evolution, the prehistoric ...
, preservation of
social capital Social capital is "the networks of relationships among people who live and work in a particular society, enabling that society to function effectively". It involves the effective functioning of social groups through interpersonal relationships ...
and protection of the environment. Specific definitions of Third Way policies may differ between Europe and the United States. The Third Way has been criticised by other social democrats, as well as
anarchists Anarchism is a political philosophy and movement that is skeptical of all justifications for authority and seeks to abolish the institutions it claims maintain unnecessary coercion and hierarchy, typically including, though not necessari ...
,
communists Communism (from Latin la, communis, lit=common, universal, label=none) is a far-left sociopolitical, philosophical, and economic ideology and current within the socialist movement whose goal is the establishment of a communist society, a so ...
and in particular
democratic socialists Democratic socialism is a left-wing political philosophy that supports political democracy and some form of a socially owned economy, with a particular emphasis on economic democracy, workplace democracy, and workers' self-management within ...
as a betrayal of left-wing values, Black, Bill (28 March 2013)
"Gender Wage Gap is Shrinking - Male Wages are Going Down"
.
The Real News Network The Real News Network (TRNN) is an independent, nonprofit news organization based in Baltimore, MD that covers both national and international news. History TRNN was founded by documentary producer Paul Jay and Mishuk Munier in September 20 ...
. Retrieved 31 March 2013.
Black, Bill (10 January 2013)
"Third Way's" "Fresh Thinking": The EU Is Our Model for Austerity"
''
The Huffington Post ''HuffPost'' (formerly ''The Huffington Post'' until 2017 and sometimes abbreviated ''HuffPo'') is an American progressive news website, with localized and international editions. The site offers news, satire, blogs, and original content, and ...
''. Retrieved 10 January 2013.
Black, Bill (3 March 2013)
"Seriously? New York Times Calls Wall Street Front Group "Center-Left"
.
AlterNet AlterNet is a left-leaning online news outlet. It was launched in 1997 by the Independent Media Institute. In 2018, the website was acquired by owners of ''Raw Story''. Coverage Coverage is divided into several special sections related to progre ...
. Retrieved 3 March 2013.
with some analysts characterising the Third Way as an effectively neoliberal movement.Barrientos, Armando; Powell, Martin (2004). "The Route Map of the Third Way". In Hale, Sarah; Leggett, Will; Martell, Luke (eds.). ''The Third Way and Beyond: Criticisms, Futures and Alternatives''. Manchester University Press. pp. 9–26. .Romano, Flavio (2006). ''Clinton and Blair: The Political Economy of the Third Way''. Routledge Frontiers of Political Economy. 75. London: Routledge. .Hinnfors, Jonas (2006). ''Reinterpreting Social Democracy: A History of Stability in the British Labour Party and Swedish Social Democratic Party''. Critical Labour Movement Studies. Manchester University Press. .Lafontaine, Oskar (2009). ''Left Parties Everywhere?''. Socialist Renewal. Nottingham, England: Spokesman Books. .Corfe, Robert (2010). ''The Future of Politics: With the Demise of the Left/Right Confrontational System''. Bury St Edmunds, England: Arena Books. . It has also been criticised by certain
conservatives Conservatism is a cultural, social, and political philosophy that seeks to promote and to preserve traditional institutions, practices, and values. The central tenets of conservatism may vary in relation to the culture and civilization in ...
,
classical liberals Classical liberalism is a political tradition and a branch of liberalism that advocates free market and laissez-faire economics; civil liberties under the rule of law with especial emphasis on individual autonomy, limited government, economic ...
and
libertarians Libertarianism (from french: libertaire, "libertarian"; from la, libertas, "freedom") is a political philosophy that upholds liberty as a core value. Libertarians seek to maximize autonomy and political freedom, and minimize the state's enc ...
who advocate for ''
laissez-faire ''Laissez-faire'' ( ; from french: laissez faire , ) is an economic system in which transactions between private groups of people are free from any form of economic interventionism (such as subsidies) deriving from special interest groups. ...
''
capitalism Capitalism is an economic system based on the private ownership of the means of production and their operation for Profit (economics), profit. Central characteristics of capitalism include capital accumulation, competitive markets, pric ...
.


Overview


Origins

As a term, the ''third way'' has been used to explain a variety of political courses and ideologies in the last few centuries. These ideas were implemented by
progressives Progressivism holds that it is possible to improve human societies through political action. As a political movement, progressivism seeks to advance the human condition through social reform based on purported advancements in science, techno ...
in the early 20th century. The term was picked up again in the 1950s by German
ordoliberal Ordoliberalism is the German variant of economic liberalism that emphasizes the need for government to ensure that the free market produces results close to its theoretical potential but does not advocate for a welfare state. Ordoliberal ideals ...
economists such as
Wilhelm Röpke Wilhelm Röpke (October 10, 1899 – February 12, 1966) was a German economist and social critic, best known as one of the spiritual fathers of the social market economy. A Professor of Economics, first in Jena, then in Graz, Marburg, Ist ...
, resulting in the development of the concept of the
social market economy The social market economy (SOME; german: soziale Marktwirtschaft), also called Rhine capitalism, Rhine-Alpine capitalism, the Rhenish model, and social capitalism, is a socioeconomic model combining a free-market capitalist economic system alon ...
. Röpke later distanced himself from the term and located the social market economy as first way in the sense of an advancement of the
free-market economy A market economy is an economic system in which the decisions regarding investment, production and distribution to the consumers are guided by the price signals created by the forces of supply and demand, where all suppliers and consumers are ...
. During the
Prague Spring The Prague Spring ( cs, Pražské jaro, sk, Pražská jar) was a period of political liberalization and mass protest in the Czechoslovak Socialist Republic. It began on 5 January 1968, when reformist Alexander Dubček was elected First Sec ...
of 1968, reform economist
Ota Šik Ota Šik (11 September 1919 – 22 August 2004) was a Czech economist and politician. He was the man behind the ''New Economic Model'' (economic liberalization plan) and he was also one of the key figures in the Prague Spring. Early years Šik w ...
proposed third way economic reform as part of political
liberalisation Liberalization or liberalisation (British English) is a broad term that refers to the practice of making laws, systems, or opinions less severe, usually in the sense of eliminating certain government regulations or restrictions. The term is used m ...
and
democratisation Democratization, or democratisation, is the transition to a more democratic political regime, including substantive political changes moving in a democratic direction. It may be a hybrid regime in transition from an authoritarian regime to a full ...
within the country. In historical context, such proposals were better described as liberalised
centrally-planned economy A planned economy is a type of economic system where investment, production and the allocation of capital goods takes place according to economy-wide economic plans and production plans. A planned economy may use centralized, decentralized, part ...
rather than the socially-sensitive capitalism that Third Way policies tend to have been identified with in the West. In the 1970s and 1980s,
Enrico Berlinguer Enrico Berlinguer (; 25 May 1922 – 11 June 1984) was an Italian politician, considered the most popular leader of the Italian Communist Party (PCI), which he led as the national secretary from 1972 until his death during a tense period in Ital ...
, leader of the
Italian Communist Party The Italian Communist Party ( it, Partito Comunista Italiano, PCI) was a communist political party in Italy. The PCI was founded as ''Communist Party of Italy'' on 21 January 1921 in Livorno by seceding from the Italian Socialist Party (PSI). ...
, came to advocate a vision of a socialist society that was more pluralist than the
real socialism Real socialism, better known as actually existing socialism or developed socialism (), was an ideological catchphrase popularized during the Brezhnev era in the Eastern Bloc countries and the Soviet Union.
which was typically advocated by
official communist Stalinism is the means of governing and Marxist-Leninist policies implemented in the Soviet Union from 1927 to 1953 by Joseph Stalin. It included the creation of a one-party totalitarian police state, rapid industrialization, the theory ...
parties whilst being more economically egalitarian than social democracy. This was part of the wider trend of
Eurocommunism Eurocommunism, also referred to as democratic communism or neocommunism, was a trend in the 1970s and 1980s within various Western European communist parties which said they had developed a theory and practice of social transformation more rel ...
in the communist movement and provided a theoretical basis for Berlinguer's pursuit of the Historic Compromise with the
Christian Democrats __NOTOC__ Christian democratic parties are political parties that seek to apply Christian principles to public policy. The underlying Christian democracy movement emerged in 19th-century Europe, largely under the influence of Catholic social ...
.
Harold Macmillan Maurice Harold Macmillan, 1st Earl of Stockton, (10 February 1894 – 29 December 1986) was a British Conservative statesman and politician who was Prime Minister of the United Kingdom from 1957 to 1963. Caricatured as "Supermac", he ...
, British Prime Minister from 1957 to 1963, based his philosophy of government on what he summarised in the 1938 book '' The Middle Way''.


Modern usage

Third Way politics is visible in
Anthony Giddens Anthony Giddens, Baron Giddens (born 18 January 1938) is an English sociologist who is known for his theory of structuration and his holistic view of modern societies. He is considered to be one of the most prominent modern sociologists and is t ...
' works such as ''Consequences of Modernity'' (1990), ''Modernity and Self-Identity'' (1991), ''The Transformation of Intimacy'' (1992), ''Beyond Left and Right'' (1994) and ''The Third Way: The Renewal of Social Democracy'' (1998). In ''Beyond Left and Right'', Giddens criticises
market socialism Market socialism is a type of economic system involving the public, cooperative, or social ownership of the means of production in the framework of a market economy, or one that contains a mix of worker-owned, nationalized, and privately owned ...
and constructs a six-point framework for a reconstituted
radical politics Radical politics denotes the intent to transform or replace the principles of a society or political system, often through social change, structural change, revolution or radical reform. The process of adopting radical views is termed radicali ...
that includes the following values: # Repair damaged solidarities. # Recognise the centrality of life politics. # Accept that active trust implies generative politics. # Embrace dialogic democracy. # Rethink the
welfare state A welfare state is a form of government in which the state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal opportunity, equitabl ...
. # Confront violence. In ''The Third Way'', Giddens provides the framework within which the Third Way, also termed by Giddens as the '' radical centre'', is justified. In addition, it supplies a broad range of policy proposals aimed at what Giddens calls the " progressive
centre-left Centre-left politics lean to the left on the left–right political spectrum but are closer to the centre than other left-wing politics. Those on the centre-left believe in working within the established systems to improve social justice. The c ...
" in British politics. During his 1992 presidential campaign,
Bill Clinton William Jefferson Clinton ( né Blythe III; born August 19, 1946) is an American politician who served as the 42nd president of the United States from 1993 to 2001. He previously served as governor of Arkansas from 1979 to 1981 and agai ...
espoused the ideas of the Third Way. The Third Way has been defined as such:
mething different and distinct from liberal capitalism with its unswerving belief in the merits of the free market and democratic socialism with its demand management and obsession with the state. The Third Way is in favour of growth, entrepreneurship, enterprise and wealth creation but it is also in favour of greater social justice and it sees the state playing a major role in bringing this about. So in the words of ... Anthony Giddens of the LSE the Third Way rejects top down socialism as it rejects traditional neo liberalism.
The Third Way has been advocated by its proponents as a "radical-centrist" alternative to both capitalism and what it regards as the traditional forms of socialism, including Marxian and
state socialism State socialism is a political and economic ideology within the socialist movement that advocates state ownership of the means of production. This is intended either as a temporary measure, or as a characteristic of socialism in the transition fr ...
.Arora, N. D. (2010). ''Political Science for Civil Services Main Examination''. Tata McGraw-Hill Education. pp. 9, 22. It advocates
ethical socialism Ethical socialism is a political philosophy that appeals to socialism on ethical and moral grounds as opposed to consumeristic, economic, and egoistic grounds. It emphasizes the need for a morally conscious economy based upon the principles of ...
,
reformism Reformism is a political doctrine advocating the reform of an existing system or institution instead of its abolition and replacement. Within the socialist movement, reformism is the view that gradual changes through existing institutions can eve ...
and
gradualism Gradualism, from the Latin ''gradus'' ("step"), is a hypothesis, a theory or a tenet assuming that change comes about gradually or that variation is gradual in nature and happens over time as opposed to in large steps. Uniformitarianism, incrementa ...
that includes advocating the humanisation of
capitalism Capitalism is an economic system based on the private ownership of the means of production and their operation for Profit (economics), profit. Central characteristics of capitalism include capital accumulation, competitive markets, pric ...
, a
mixed economy A mixed economy is variously defined as an economic system blending elements of a market economy with elements of a planned economy, markets with state interventionism, or private enterprise with public enterprise. Common to all mixed economi ...
, political pluralism and
liberal democracy Liberal democracy is the combination of a liberal political ideology that operates under an indirect democratic form of government. It is characterized by elections between multiple distinct political parties, a separation of powers into diff ...
.


Within social democracy

The Third Way has been advocated by proponents as competition socialism, an ideology in between traditional socialism and capitalism.
Anthony Giddens Anthony Giddens, Baron Giddens (born 18 January 1938) is an English sociologist who is known for his theory of structuration and his holistic view of modern societies. He is considered to be one of the most prominent modern sociologists and is t ...
, a prominent proponent of the Third Way, has publicly supported a modernised form of socialism within the social democracy movement, but he claims that traditional socialist ideology (referring to state socialism) that involves economic management and planning are flawed and states that as a theory of the managed economy it barely exists any longer. In defining the Third Way,
Tony Blair Sir Anthony Charles Lynton Blair (born 6 May 1953) is a British former politician who served as Prime Minister of the United Kingdom from 1997 to 2007 and Leader of the Labour Party from 1994 to 2007. He previously served as Leader of th ...
once wrote: "The Third Way stands for a modernised social democracy, passionate in its commitment to social justice".


History


Australia

Under the nominally
centre-left Centre-left politics lean to the left on the left–right political spectrum but are closer to the centre than other left-wing politics. Those on the centre-left believe in working within the established systems to improve social justice. The c ...
Australian Labor Party The Australian Labor Party (ALP), also simply known as Labor, is the major centre-left political party in Australia, one of two major parties in Australian politics, along with the centre-right Liberal Party of Australia. The party forms the f ...
(ALP) from 1983 to 1996, the
Bob Hawke Robert James Lee Hawke (9 December 1929 – 16 May 2019) was an Australian politician and union organiser who served as the 23rd prime minister of Australia from 1983 to 1991, holding office as the leader of the Australian Labor Party (A ...
and
Paul Keating Paul John Keating (born 18 January 1944) is an Australian former politician and unionist who served as the 24th prime minister of Australia from 1991 to 1996, holding office as the leader of the Australian Labor Party (ALP). He previously serv ...
governments pursued many economic policies associated with
economic rationalism Economic rationalism is an Australian term often used in the discussion of macroeconomic policy, applicable to the economic policy of many governments around the world, in particular during the 1980s and 1990s. Economic rationalists tend to favour ...
such as floating the
Australian Dollar The Australian dollar (sign: $; code: AUD) is the currency of Australia, including its external territories: Christmas Island, Cocos (Keeling) Islands, and Norfolk Island. It is officially used as currency by three independent Pacific Island s ...
in 1983, reductions in trade
tariff A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and poli ...
s, taxation reforms, changing from centralised wage-fixing to
enterprise bargaining Enterprise bargaining is an Australian term for a form of collective bargaining, in which wages and working conditions are negotiated at the level of the individual organisations, as distinct from sectoral collective bargaining across whole industr ...
, heavy restrictions on
trade union A trade union (labor union in American English), often simply referred to as a union, is an organization of workers intent on "maintaining or improving the conditions of their employment", ch. I such as attaining better wages and benefits ( ...
activities including on
strike action Strike action, also called labor strike, labour strike, or simply strike, is a work stoppage caused by the mass refusal of employees to Labor (economics), work. A strike usually takes place in response to grievance (labour), employee grievance ...
and
pattern bargaining Pattern bargaining is a process in labour relations, where a trade union gains a new and superior entitlement from one employer and then uses that agreement as a precedent to demand the same entitlement or a superior one from other employers. In t ...
, the
privatisation Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...
of government-run services and enterprises such as
Qantas Qantas Airways Limited ( ) is the flag carrier of Australia and the country's largest airline by fleet size, international flights, and international destinations. It is the world's third-oldest airline still in operation, having been founded ...
and the
Commonwealth Bank The Commonwealth Bank of Australia (CBA), or CommBank, is an Australian multinational bank with businesses across New Zealand, Asia, the United States and the United Kingdom. It provides a variety of financial services including retail, busines ...
and wholesale
deregulation Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s, as a ...
of the
banking system A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Becaus ...
. Keating also proposed a Goods and Services Tax (GST) in 1985, but this was scrapped due to its unpopularity amongst both ALP and electorate. The party also desisted from other reforms such as wholesale labour market deregulation, the eventual GST, the privatisation of
Telstra Telstra Group Limited is an Australian telecommunications company that builds and operates telecommunications networks and markets voice, mobile, internet access, pay television and other products and services. It is a member of the S&P/ASX 20 ...
and welfare reform. The Hawke-Keating governments have been considered by some as laying the groundwork for the later development of both the
New Democrats New Democrats, also known as centrist Democrats, Clinton Democrats, or moderate Democrats, are a centrist ideological faction within the Democratic Party in the United States. As the Third Way faction of the party, they are seen as culturall ...
in the United States and
New Labour New Labour was a period in the history of the British Labour Party from the mid to late 1990s until 2010 under the leadership of Tony Blair and Gordon Brown. The name dates from a conference slogan first used by the party in 1994, later seen ...
in the United Kingdom. One political commentator agreed that it led
centre-left Centre-left politics lean to the left on the left–right political spectrum but are closer to the centre than other left-wing politics. Those on the centre-left believe in working within the established systems to improve social justice. The c ...
parties towards the path to
neoliberalism Neoliberalism (also neo-liberalism) is a term used to signify the late 20th century political reappearance of 19th-century ideas associated with free-market capitalism after it fell into decline following the Second World War. A prominent fa ...
. Meanwhile, others acknowledge several neoliberal reforms, but at the same time disagreed and focused on the prosperity and social equality that they provided in the "26 years of uninterrupted economic growth since 1991", seeing it as fitting well within "Australian Labourism".Swan, Waye (13 May 2017)
"Was embracing the market a necessary evil for Labour and Labor?"
''The Conversation''. Retrieved 15 February 2020.
Both Hawke and Keating made some criticism too. In the lead-up to the 2019 federal election, Hawke made a joint statement with Keating endorsing Labor's economic plan and condemned the
Liberal Party The Liberal Party is any of many political parties around the world. The meaning of ''liberal'' varies around the world, ranging from liberal conservatism on the right to social liberalism on the left. __TOC__ Active liberal parties This is a li ...
for "completely
iving Iving may refer to: *Intravenous therapy Intravenous therapy (abbreviated as IV therapy) is a medical technique that administers fluids, medications and nutrients directly into a person's vein. The intravenous route of administration is commonly ...
up the economic reform agenda". They stated that " illShorten's Labor is the only party of government focused on the need to modernise the economy to deal with the major challenge of our time: human induced climate change". Various ideological beliefs were factionalised under reforms to the ALP under
Gough Whitlam Edward Gough Whitlam (11 July 191621 October 2014) was the 21st prime minister of Australia, serving from 1972 to 1975. The longest-serving federal leader of the Australian Labor Party (ALP) from 1967 to 1977, he was notable for being the he ...
, resulting in what is now known as the
Labor Left The Labor Left, also known as the Progressive Left or Socialist Left, is political faction of the Australian Labor Party (ALP). It competes with the more economically liberal Labor Right faction. The Labor Left operates autonomously in each s ...
, who tend to favour a more interventionist economic policy, more authoritative top-down controls and some socially progressive ideals; and
Labor Right The Labor Right, also known as Modern Labor, is a political faction of the Australian Labor Party (ALP) at the national level that is characterised by being more economically conservative and, in some cases, more socially conservative. The Labor ...
, the now dominant faction that is
pro-business A market economy is an economic system in which the decisions regarding investment, production and distribution to the consumers are guided by the price signals created by the forces of supply and demand, where all suppliers and consumers are ...
, more
economically liberal Economic liberalism is a political and economic ideology that supports a market economy based on individualism and private property in the means of production. Adam Smith is considered one of the primary initial writers on economic liberalis ...
and focuses to a lesser extent on social issues. The Whitlam government was first to use the term
economic rationalism Economic rationalism is an Australian term often used in the discussion of macroeconomic policy, applicable to the economic policy of many governments around the world, in particular during the 1980s and 1990s. Economic rationalists tend to favour ...
. The Whitlam government from 1972-75 changed from a
democratic socialism Democratic socialism is a Left-wing politics, left-wing political philosophy that supports political democracy and some form of a socially owned economy, with a particular emphasis on economic democracy, workplace democracy, and workers' self- ...
platform to
social democracy Social democracy is a Political philosophy, political, Social philosophy, social, and economic philosophy within socialism that supports Democracy, political and economic democracy. As a policy regime, it is described by academics as advocati ...
, their precursor to the party's Third Way policies. Under the Whitlam government, tariffs across the board were cut by 25% after twenty-three years of Labor being in opposition. Former Labor Prime Minister
Kevin Rudd Kevin Michael Rudd (born 21 September 1957) is an Australian former politician and diplomat who served as the 26th prime minister of Australia from 2007 to 2010 and again from June 2013 to September 2013, holding office as the leader of the ...
's first speech to parliament in 1998 stated:
Competitive markets are massive and generally efficient generators of economic wealth. They must therefore have a central place in the management of the economy. But markets sometimes fail, requiring direct government intervention through instruments such as industry policy. There are also areas where the public good dictates that there should be no market at all. We are not afraid of a vision in the Labor Party, but nor are we afraid of doing the hard policy yards necessary to turn that vision into reality. Parties of the Centre Left around the world are wrestling with a similar challenge—the creation of a competitive economy while advancing the overriding imperative of a just society. Some call this the "third way". The nomenclature is unimportant. What is important is that it is a repudiation of
Thatcherism Thatcherism is a form of British conservative ideology named after Conservative Party leader Margaret Thatcher that relates to not just her political platform and particular policies but also her personal character and general style of manag ...
and its Australian derivatives represented opposite. It is in fact a new formulation of the nation's economic and social imperatives.
While critical of economists such as
Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian–British economist, legal theorist and philosopher who is best known for his defense of classical liberalism. Haye ...
, Rudd described himself as "basically a
conservative Conservatism is a cultural, social, and political philosophy that seeks to promote and to preserve traditional institutions, practices, and values. The central tenets of conservatism may vary in relation to the culture and civilization i ...
when it comes to questions of public financial management", pointing to his slashing of public service jobs as a Queensland governmental advisor. Rudd's government has been praised and credited "by most economists, both local and international, for helping Australia avoiding a post-global-financial-crisis recession" during the
Global Recession A global recession is recession that affects many countries around the world—that is, a period of global economic slowdown or declining economic output. Definitions The International Monetary Fund defines a global recession as "a decline i ...
.


France

Examples of French Third Way politicians include current President
Emmanuel Macron Emmanuel Macron (; born 21 December 1977) is a French politician who has served as President of France since 2017. ''Ex officio'', he is also one of the two Co-Princes of Andorra. Prior to his presidency, Macron served as Minister of Econ ...
, and to a lesser extent
François Hollande François Gérard Georges Nicolas Hollande (; born 12 August 1954) is a French politician who served as President of France from 2012 to 2017. He previously was First Secretary of the Socialist Party (PS) from 1997 to 2008, Mayor of Tulle from ...
,
Dominique Strauss-Kahn Dominique Gaston André Strauss-Kahn (; born 25 April 1949), also known as DSK, is a French economist and politician who served as the tenth managing director of the International Monetary Fund (IMF), and was a member of the French Socialist P ...
and
Manuel Valls Manuel Carlos Valls Galfetti (, , ; born 13 August 1962) is a French-Spanish politician who has served as a Barcelona city councillor from 2019 to 2021. He served as Prime Minister of France from 2014 until 2016 under president François Hol ...
.


Italy

The Italian
Democratic Party Democratic Party most often refers to: *Democratic Party (United States) Democratic Party and similar terms may also refer to: Active parties Africa *Botswana Democratic Party *Democratic Party of Equatorial Guinea *Gabonese Democratic Party *Demo ...
is a plural
social democratic Social democracy is a political, social, and economic philosophy within socialism that supports political and economic democracy. As a policy regime, it is described by academics as advocating economic and social interventions to promote soci ...
party including several distinct ideologic trends. Politicians such as former Prime Ministers
Romano Prodi Romano Antonio Prodi (; born 9 August 1939) is an Italian politician, economist, academic, senior civil servant, and business executive who served as the tenth president of the European Commission from 1999 to 2004. He served twice as Prim ...
and
Matteo Renzi Matteo Renzi (; born 11 January 1975) is an Italian politician who served as prime minister of Italy from 2014 to 2016. He has been a senator for Florence since 2018. Renzi has served as the leader of Italia Viva (IV) since 2019, having been ...
are proponents of the Third Way. Renzi has occasionally been compared to former
UK Prime Minister The prime minister of the United Kingdom is the head of government of the United Kingdom. The prime minister advises the sovereign on the exercise of much of the royal prerogative, chairs the Cabinet and selects its ministers. As modern pr ...
Tony Blair Sir Anthony Charles Lynton Blair (born 6 May 1953) is a British former politician who served as Prime Minister of the United Kingdom from 1997 to 2007 and Leader of the Labour Party from 1994 to 2007. He previously served as Leader of th ...
for his political views. Renzi himself has previously claimed to be a supporter of Blair's ideology of the Third Way, regarding an objective to synthesise liberal economics and left-wing social policies. Under Renzi's secretariat, the Democratic Party took a strong stance in favour of
constitutional reform A constitutional amendment is a modification of the constitution of a polity, organization or other type of entity. Amendments are often interwoven into the relevant sections of an existing constitution, directly altering the text. Conversely, ...
and of a new electoral law on the road toward a two-party system. It is not an easy task to find the exact political trend represented by Renzi and his supporters, who have been known as ''Renziani''. The nature of Renzi's progressivism is a matter of debate and has been linked both to liberalism and populism. According to Maria Teresa Meli of ''Corriere della Sera'', Renzi "pursues a precise model, borrowed from the Labour Party (UK), Labour Party and
Bill Clinton William Jefferson Clinton ( né Blythe III; born August 19, 1946) is an American politician who served as the 42nd president of the United States from 1993 to 2001. He previously served as governor of Arkansas from 1979 to 1981 and agai ...
's Democratic Party (United States), Democratic Party", comprising "a strange mix (for Italy) of liberal policy in the economic sphere and populism. This means that on one side he will attack the privileges of trade unions, especially of the Italian General Confederation of Labour, CGIL, which defends only the already protected, while on the other he will sharply attack the vested powers, bankers, Confindustria and a certain type of capitalism". After the Democratic Party's defeat in the 2018 Italian general election, 2018 general election in which the party gained 18.8% and 19.1% of the vote (down from 25.5% and 27.4% in 2013) and lost 185 deputies and 58 senators, respectively, Renzi resigned as the party's secretary. In March 2019, Nicola Zingaretti, a social democrat and prominent member of the party's left-wing with solid roots in the
Italian Communist Party The Italian Communist Party ( it, Partito Comunista Italiano, PCI) was a communist political party in Italy. The PCI was founded as ''Communist Party of Italy'' on 21 January 1921 in Livorno by seceding from the Italian Socialist Party (PSI). ...
, won the 2019 Democratic Party (Italy) leadership election, leadership election by a landslide, defeating Maurizio Martina (Renzi's former deputy secretary) and Roberto Giachetti (supported by most ''Renziani''). Zingaretti focused his campaign on a clear contrast with Renzi's policies and his victory opened the way for a new party. In September 2019, Renzi announced his intention to leave the Democratic Party and create a new parliamentary group. He officially launched Italia Viva to continue the liberal and Third Way tradition within a pro-Europeanism framework, especially as represented by the French President
Emmanuel Macron Emmanuel Macron (; born 21 December 1977) is a French politician who has served as President of France since 2017. ''Ex officio'', he is also one of the two Co-Princes of Andorra. Prior to his presidency, Macron served as Minister of Econ ...
's La République En Marche!.


United Kingdom

In 1938,
Harold Macmillan Maurice Harold Macmillan, 1st Earl of Stockton, (10 February 1894 – 29 December 1986) was a British Conservative statesman and politician who was Prime Minister of the United Kingdom from 1957 to 1963. Caricatured as "Supermac", he ...
wrote a book entitled ''The Middle Way'', advocating a compromise between
capitalism Capitalism is an economic system based on the private ownership of the means of production and their operation for Profit (economics), profit. Central characteristics of capitalism include capital accumulation, competitive markets, pric ...
and
socialism Socialism is a left-wing economic philosophy and movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to private ownership. As a term, it describes the e ...
which was a precursor to the contemporary notion of the Third Way. In 1979, the Labour Party (UK), Labour Party professed a complete adherence to
social democratic Social democracy is a political, social, and economic philosophy within socialism that supports political and economic democracy. As a policy regime, it is described by academics as advocating economic and social interventions to promote soci ...
ideals and rejected the choice between a "prosperous and efficient Britain" and a "caring and compassionate Britain"."1979 Labour Party Manifesto"
Coherent with this position, the main commitment of the party was the reduction of economic inequality via the introduction of a wealth tax. This was rejected in the 1997 manifesto, along with many changes in the 1990s like the progressive dismissal of traditional social democratic ideology and the transformation into
New Labour New Labour was a period in the history of the British Labour Party from the mid to late 1990s until 2010 under the leadership of Tony Blair and Gordon Brown. The name dates from a conference slogan first used by the party in 1994, later seen ...
, de-emphasising the need to tackle economic inequality and focusing instead on the expansion of opportunities for all whilst fostering
social capital Social capital is "the networks of relationships among people who live and work in a particular society, enabling that society to function effectively". It involves the effective functioning of social groups through interpersonal relationships ...
.Ferragina, Emanuele; Arrigoni, Alessandro (2016)
"The Rise and Fall of Social Capital: Requiem for a Theory?"
''Political Studies Review''.
Former Prime Minister
Tony Blair Sir Anthony Charles Lynton Blair (born 6 May 1953) is a British former politician who served as Prime Minister of the United Kingdom from 1997 to 2007 and Leader of the Labour Party from 1994 to 2007. He previously served as Leader of th ...
is cited as a Third Way politician. According to a former member of Blair's staff, Blair and the Labour Party (UK), Labour Party learnt from and owes a debt to
Bob Hawke Robert James Lee Hawke (9 December 1929 – 16 May 2019) was an Australian politician and union organiser who served as the 23rd prime minister of Australia from 1983 to 1991, holding office as the leader of the Australian Labor Party (A ...
's government in Australia in the 1980s on how to govern as a Third Way party. Blair wrote in a Fabian Society, Fabian pamphlet in 1994 of the existence of two prominent variants of socialism, namely one based on a Marxism–Leninism, Marxist–Leninist economic determinist and collectivist tradition and the other being an
ethical socialism Ethical socialism is a political philosophy that appeals to socialism on ethical and moral grounds as opposed to consumeristic, economic, and egoistic grounds. It emphasizes the need for a morally conscious economy based upon the principles of ...
based on values of "social justice, the equal worth of each citizen, equality of opportunity, community".Stephen D. Tansey, Nigel A. Jackson. ''Politics: the basics''. Fourth Edition. Oxon, England, UK; New York, New York, USA: Routledge, 2008. Pp. 97. Blair is a particular follower of the ideas and writings of Giddens. In 1998, Blair, then Leader of the Labour Party (UK), Labour Party Leader and Prime Minister of the United Kingdom, described the Third Way, how it relates to social democracy and its relation with both the Old Left and the
New Right New Right is a term for various right-wing political groups or policies in different countries during different periods. One prominent usage was to describe the emergence of certain Eastern European parties after the collapse of the Soviet Uni ...
, as follows: In 2002,
Anthony Giddens Anthony Giddens, Baron Giddens (born 18 January 1938) is an English sociologist who is known for his theory of structuration and his holistic view of modern societies. He is considered to be one of the most prominent modern sociologists and is t ...
listed problems facing the New Labour government, naming Spin (public relations), spin as the biggest failure because its damage to the party's image was difficult to rebound from. He also challenged the failure of the Millennium Dome project and Labour's inability to deal with irresponsible businesses. Giddens saw Labour's ability to marginalise the Conservative Party (UK), Conservative Party as a success as well its economic policy, welfare reform and certain aspects of education. Giddens criticised what he called Labour's "half-way houses", including the National Health Service and environmental and constitutional reform. In 2008, Charles Clarke, a former United Kingdom Home Secretary and the first senior Blairite to attack Prime Minister Gordon Brown openly and in print, stated: "We should discard the techniques of 'Triangulation (politics), triangulation' and 'dividing lines' with the Conservatives, which lead to the not entirely unjustified charge that we simply follow proposals from the Conservatives or the right-wing media, to minimise differences and remove lines of attack against us". Brown was succeeded by Ed Miliband's One Nation Labour in 2010 and self-described democratic socialist Jeremy Corbyn in 2015 as the Leader of the Labour Party (UK), Leader of the Labour Party. This led some to comment that New Labour is "dead and buried". The Third Way as practised under New Labour has been criticised as being effectively a new,
centre-right Centre-right politics lean to the Right-wing politics, right of the Left–right politics, political spectrum, but are closer to the Centrism, centre. From the 1780s to the 1880s, there was a shift in the Western world of social class structure a ...
and neoliberal party. Some such as Glen O'Hara have argued that while containing "elements that we could term neoliberal", New Labour was more left-leaning than it is given credit for.


United States

In the United States, Third Way adherents embrace fiscal conservatism to a greater extent than traditional economic liberals, advocate some replacement of welfare (financial aid), welfare with workfare and sometimes have a stronger preference for market solutions to traditional problems (as in pollution markets) while rejecting pure ''
laissez-faire ''Laissez-faire'' ( ; from french: laissez faire , ) is an economic system in which transactions between private groups of people are free from any form of economic interventionism (such as subsidies) deriving from special interest groups. ...
'' economics and other Libertarianism in the United States, libertarian positions. The Third Way style of governing was firmly adopted and partly redefined during the Clinton Administration, administration of President of the United States, President
Bill Clinton William Jefferson Clinton ( né Blythe III; born August 19, 1946) is an American politician who served as the 42nd president of the United States from 1993 to 2001. He previously served as governor of Arkansas from 1979 to 1981 and agai ...
, as well as during the Biden Administration, administration of President of the United States, President Joe Biden . As a term, it was introduced by political scientist Stephen Skowronek. Third Way Presidents "undermine the opposition by borrowing policies from it in an effort to seize the middle and with it to achieve political dominance". Examples of this are Richard Nixon's economic policies which were a continuation of Lyndon B. Johnson's Great Society as well as Clinton's Personal Responsibility and Work Opportunity Act, welfare reform later. Along with Blair, Prodi, Gerhard Schröder and other leading Third Way adherents, Clinton organised conferences to promote the Third Way philosophy in 1997 at Chequers in England. The Third Way (United States), Third Way think tank and the Democratic Leadership Council are adherents of Third Way politics. In 2013, American lawyer and former bank regulator William K. Black wrote that "Third Way is this group that pretends sometimes to be centre-left but is actually completely a creation of Wall Street—it's run by Wall Street for Wall Street with this false flag operation as if it were a center-left group. It's nothing of the sort".


Other countries

Other leaders who have adopted elements of the Third Way style of governance include Joe Biden, Viktor Klima and Alfred Gusenbauer in Austria, Fernando Henrique Cardoso and Luiz Inácio Lula da Silva in Brazil, Jean Chrétien, Paul Martin and Justin Trudeau in Canada, Ricardo Lagos and Michelle Bachelet (only her first period) in Chile, Juan Manuel Santos in Colombia, Helle Thorning-Schmidt in Denmark, Lenín Moreno in Ecuador, Paavo Lipponen and Sanna Marin in Finland, Gerhard Schröder and Olaf Scholz of Germany, Costas Simitis in Greece, Ferenc Gyurcsány in Hungary, Ehud Barak, Ehud Olmert and Tzipi Livni in Israel, Muammar Gaddafi in Libya Ernesto Zedillo in Mexico, Wim Kok of the Netherlands, Helen Clark in New Zealand, Alan García and Alejandro Toledo in Peru, Benigno Aquino III, Benigno Aquino in the Philippines, Leszek Miller and Marek Belka in Poland, António Guterres and José Sócrates of Portugal, Thabo Mbeki in South Africa, Kim Dae-jung and Roh Moo-hyun in South Korea, Ingvar Carlsson and Göran Persson in Sweden and Óscar Arias in Costa Rica. By the 2010s, social democratic parties that accepted Third Way politics such as Triangulation (politics), triangulation and the neoliberal shift in policies such as austerity,
deregulation Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s, as a ...
, free trade,
privatisation Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...
and welfare reforms such as workfare experienced a drastic decline as the Third Way had largely Social democracy#Decline and rejection of the Third Way (2007–present), fallen out of favour in a phenomenon known as Pasokification. Scholars have linked the decline of social democratic parties to the declining number of industrial workers, greater economic prosperity of voters and a tendency for these parties to shift closer to the
centre-right Centre-right politics lean to the Right-wing politics, right of the Left–right politics, political spectrum, but are closer to the Centrism, centre. From the 1780s to the 1880s, there was a shift in the Western world of social class structure a ...
on economic issues, alienating their former base of supporters and voters. This decline has been matched by increased support for more
left-wing Left-wing politics describes the range of political ideologies that support and seek to achieve social equality and egalitarianism, often in opposition to social hierarchy. Left-wing politics typically involve a concern for those in soci ...
and Left-wing populism, populist parties as well as Far-left politics#Radical left parties, Left and Green party, Green
social-democratic Social democracy is a Political philosophy, political, Social philosophy, social, and economic philosophy within socialism that supports Democracy, political and economic democracy. As a policy regime, it is described by academics as advocati ...
parties that rejected neoliberal and Third Way policies. Democratic socialism has emerged in opposition to Third Way social democracy on the basis that democratic socialists are committed to systemic transformation of the economy from capitalism to socialism whereas social-democratic supporters of the Third Way were more concerned about challenging the
New Right New Right is a term for various right-wing political groups or policies in different countries during different periods. One prominent usage was to describe the emergence of certain Eastern European parties after the collapse of the Soviet Uni ...
and win social democracy back to power. This has resulted in analysts and critics alike arguing that in effect it endorsed capitalism, even if it was due to recognising that outspoken opposition to capitalism in these circumstances was politically nonviable; and that it was anti-social democratic in practice. Others saw it as theoretically fitting with modern socialism, especially liberal socialism, distinguishing it from both classical socialism and traditional democratic socialism or social democracy. Third Way economic policies began to be challenged following the Great Recession, and the rise of right-wing populism has put the ideology into question. Many on the left have become more vocal in opposition to the Third Way, with the most prominent example in the United Kingdom being the rise of self-identified democratic socialist Labour Party leadership of Jeremy Corbyn, former Labour Party Leader Jeremy Corbyn as well as Alexandria Ocasio-Cortez and Bernie Sanders in the United States.


Criticism

The Third Way has been criticized as being a vague ideology with no specific commitments:
The Third Way is no more than a crude attempt to construct a bogus coalition between the haves and the haves not: Bogus because it entices the haves by assuring them that the economy will be sound and their interests would not be threatened, while promising the have-nots a world free from poverty and injustice. Based on opportunism, it has no ideological commitment at all.
After the dismantling of his country's Marxism–Leninism, Marxist–Leninist government, Czechoslovakia's conservative finance minister Václav Klaus declared in 1990: "We want a market economy without any adjectives. Any compromises with that will only fuzzy up the problems we have. To pursue a so-called 'third way' [between central planning and the market economy] is foolish. We had our experience with this in the 1960s when we looked for a socialism with a human face. It did not work, and we must be explicit that we are not aiming for a more efficient version of a system that has failed. The market is indivisible; it cannot be an instrument in the hands of central planners". Left-wing opponents of the Third Way argue that it represents social democrats who responded to the
New Right New Right is a term for various right-wing political groups or policies in different countries during different periods. One prominent usage was to describe the emergence of certain Eastern European parties after the collapse of the Soviet Uni ...
by accepting
capitalism Capitalism is an economic system based on the private ownership of the means of production and their operation for Profit (economics), profit. Central characteristics of capitalism include capital accumulation, competitive markets, pric ...
. The Third Way most commonly uses Market mechanism, market mechanics and private ownership of the means of production and in that sense it is fundamentally capitalist. In addition to opponents who have noticed this, other reviews have claimed that Third Way social democrats adjusted to the political climate since the 1980s that favoured capitalism by recognising that outspoken opposition to capitalism in these circumstances was politically nonviable and that accepting capitalism as the current status quo and seeking to administer it to challenge ''laissez-faire'' liberals was a more pressing immediate concern. With the rise of neoliberalism in the late 1970s and early 1980s and the Third Way between the 1990s and 2000s, social democracy became synonymous with it.Lewis, Jane; Surender, Rebecca (2004). ''Welfare State Change: Towards a Third Way?''. Oxford University Press. As a result, the section of social democracy that remained committed to the gradual abolition of capitalism and opposed the Third Way merged into democratic socialism. Many social democrats opposed to the Third Way overlap with democratic socialists in their committiment to an alternative to capitalism and a post-capitalist economy and have not only criticised the Third Way as anti-socialistCammack, Paul (2004). "Giddens's Way with Words". In Hale, Sarah; Leggett, Will; Martell, Luke (eds.). ''The Third Way and Beyond: Criticisms, Futures and Alternatives''. Manchester University Press. . and neoliberal, but also as anti-social-democratic in practice. Democratic socialists, Democratic and Market socialism, market socialists argue that the major reason for the economic shortcomings of command economies was their authoritarian nature rather than socialism itself, that it was a failure of a specific model and that therefore socialists should support democratic models rather than abandon it. Economists Pranab Bardhan and John Roemer argue that Soviet-type economic planning, Soviet-type economies and Marxist–Leninist states failed because they did not create rules and operational criteria for the efficient operation of state enterprises in their administrative, command allocation of resources and commodities and the lack of democracy in the political systems that the Soviet-type economies were combined with. According to them, a form of competitive socialism that rejects dictatorship and authoritarian allocation in favor of democracy could work and prove superior to the market economy. Although close to
New Labour New Labour was a period in the history of the British Labour Party from the mid to late 1990s until 2010 under the leadership of Tony Blair and Gordon Brown. The name dates from a conference slogan first used by the party in 1994, later seen ...
and a key figure in the development of the Third Way, sociologist
Anthony Giddens Anthony Giddens, Baron Giddens (born 18 January 1938) is an English sociologist who is known for his theory of structuration and his holistic view of modern societies. He is considered to be one of the most prominent modern sociologists and is t ...
dissociated himself from many of the interpretations of the Third Way made in the sphere of day-to-day politics. For him, it was not a succumbing to
neoliberalism Neoliberalism (also neo-liberalism) is a term used to signify the late 20th century political reappearance of 19th-century ideas associated with free-market capitalism after it fell into decline following the Second World War. A prominent fa ...
or the dominance of capitalist Market (economics), markets.Giddens, Anthony (2000). ''The Third Way and its Critics''. Polity Press. p. 32. . The point was to get beyond both market fundamentalism and top-down socialism—to make the values of the
centre-left Centre-left politics lean to the left on the left–right political spectrum but are closer to the centre than other left-wing politics. Those on the centre-left believe in working within the established systems to improve social justice. The c ...
count in a Economic globalisation, globalising world. He argued that "the Financial regulation, regulation of financial markets is the single most pressing issue in the world economy" and that "global commitment to free trade depends upon effective Regulatory economics, regulation rather than dispenses with the need for it".Giddens, Anthony (1998). ''The Third Way; A Renewal of Social Democracy''. Polity Press. pp. 148–149. .


See also

* Big Society * Communitarianism * Golden mean (philosophy) * Lulism * Moderate * Neoliberalism *
New Labour New Labour was a period in the history of the British Labour Party from the mid to late 1990s until 2010 under the leadership of Tony Blair and Gordon Brown. The name dates from a conference slogan first used by the party in 1994, later seen ...
* Pasokification * Social corporatism * Syncretic politics * Third Position * Triangulation (politics) * Tripartism * ''Varieties of Capitalism''


References


Bibliography

* Ferragina, Emanuele; Arrigoni, Alessandro (2016)
"The Rise and Fall of Social Capital: Requiem for a Theory?"
''Political Studies Review''. * * * Labour Party (UK), Labour Party (1979)
''The Labour Way is the Better Way''
. * Labour Party (UK), Labour Party (1997)
''Labour's New Deal for a Lost Generation Labour Party''
* *


External links



Nexus. * * * * {{Authority control 20th century in politics Tony Blair Centrism Bill Clinton Ideologies of capitalism Mixed economies Neoliberalism Political philosophy Political theories Social democracy Social liberalism Syncretic political movements