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A deeper democracy
Challenging market fundamentalism

By Angela Eagle MP

EXECUTIVE SUMMARY

1. Introduction

• Despite many achievements in office, there is a widespread sense among Labour’s supporters that it has yet to fulfil the promise of social transformation implicit in its May 1997 landslide.

2. The Thatcherite legacy

• 18 years in power allowed the Conservatives to entrench their market fundamentalist ideology throughout British political life. Labour’s lasting success requires that it be displaced.

3. New Labour’s political style

• New Labour was shaped by its years in opposition. While its defensive and accommodationist approach may have helped it back to power, it is insufficient for effecting a radical transformation of Britain.

• Methods of centralisation and discipline, deliberate confrontation with the party, and a retail model of political positioning and communication, have outlived their usefulness and are now becoming counterproductive.

4. New Labour’s triangulations

• The simple tactic of splitting the difference between political alternatives to attract maximum floating voter support precludes a more strategic vision of real political possibilities and opportunities.

• New Labour has made unnecessary concessions to the conservatism of the tabloid media and its Third Way rhetoric denigrates a caricature of social democracy while failing to challenge market fundamentalism.

5. Escaping the old dogmas

• Our thinking is still constrained by simplistic economic models and a mechanical view of the role of the state in effecting social change.

• We need to move to an understanding of society as a complex and unpredictable web of networks whose members are influenced by each other’s behaviour.

6. Beyond the market mechanism

• Our goal must be one of deepening democracy, achieving “bottom-up” social and political change that mobilises the experience and commitment of activists and citizens.

• Experiments in participatory budgeting show how the active involvement of voters in informed debate and deliberation can produce better decisions and socially progressive outcomes.

• Similarly, regeneration programmes have more legitimacy and lasting effect if their direction and administration is in the hands of the communities on their receiving end.

• The renewal of the public sector must go forward on the basis of worker and user empowerment within a public service ethos, not the further extension of market mechanisms and business models of organisation.

• We need a vibrant democracy in the Labour Party that values and utilises the perspectives of the membership and the trade unions and uses innovative organisational methods facilitated by modern communications.

• Society is becoming more fluid and relationships and living arrangements more diverse. Public policy needs to recognise and engage with this new reality if it is to be effective.

• The grip of market fundamentalism on the institutions of global economic governance needs to be loosened, and replaced with principles of international fairness, transparency, and real democratic accountability.

7. Conclusion

• Our aim must be to take this debate forward in the most constructive and inclusive way possible. It is on this basis that we will be able to turn a good Labour government into a great one.

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