173-526: The Autonomist Democrats ( Democratici Autonomisti ) were a social-democratic and liberal electoral list for the 2008 Sicilian regional election . Its leading members included Maurizio Ballistreri , a former regional deputy for the Italian Democratic Socialists now leading member of the social-democratic faction within the Movement for Autonomy , and Salvatore Grillo , deputy secretary of
346-591: A post-capitalist economic system based on either a market economy combined with workers' self-management or on some form of participatory , decentralized planning of the economy. Marxian socialists argue that social democratic welfare policies cannot resolve the fundamental structural issues of capitalism, such as cyclical fluctuations , exploitation , and alienation . Accordingly, social democratic programs intended to ameliorate living conditions in capitalism, such as unemployment benefits and taxation on profits, creates further contradictions by further limiting
519-543: A post-capitalist order or, in more ethical terms, as a just society, described as representing democratic socialism, without any explicit reference to the economic system or its structure. Parties such as the Social Democratic Party of Germany and the Swedish Social Democratic Party describe their goal as developing democratic socialism, with social democracy as the principle of action. In
692-419: A "Scandinavian model" economy, with high taxes and a robust welfare state. Socialist economists Pranab Bardhan and John Roemer criticize Nordic-style social democracy for its questionable effectiveness in promoting relative egalitarianism as well as its sustainability . They posit that Nordic social democracy requires a strong labour movement to sustain the heavy redistribution required, arguing that it
865-597: A 2017 study, economists James Heckman and Rasmus Landersøn compared American and Danish social mobility, and found that social mobility is not as high as figures might suggest in the Nordic countries, although they did find that Denmark ranks higher in income mobility. When looking exclusively at wages (before taxes and transfers), Danish and American social mobility are very similar; it is only after taxes and transfers are taken into account that Danish social mobility improves, indicating that Danish economic redistribution policies are
1038-448: A Labour Government in office and Labour pressure in opposition. Against the dogged resistance to change, we should have pitted a stronger will to change. I conclude that a move to the Left is needed". In Origin, Ideology and Transformation of Political Parties: East-Central and Western Europe Compared , Vít Hloušek and Lubomír Kopecek explain how socialist parties have evolved from the 19th to
1211-439: A broader perspective on well-being incorporating, such as social issues associated with bodily integrity or bodily citizenship, then some major forms of men's domination still stubbornly persist in the Nordic countries, e.g. business, violence to women, sexual violence to children, the military, academia, and religion. While praising the Nordic model as a "clear and compelling contrast to the neoliberal ideology that has strafed
1384-680: A capitalist economy. To a large extent, that consists of using public insurance programs – government transfers and services." Nobel Prize-winning economist Joseph Stiglitz says that there is higher social mobility in the Scandinavian countries than in the United States and posits that Scandinavia is now the land of opportunity that the United States once was. American author Ann Jones , who lived in Norway for four years, posits that "the Nordic countries give their populations freedom from
1557-420: A comprehensive welfare state and multi-level collective bargaining based on the economic foundations of social corporatism , and a commitment to private ownership within a market-based mixed economy – with Norway being a partial exception due to a large number of state-owned enterprises and state ownership in publicly listed firms . Although there are significant differences among
1730-426: A failed state, with record unemployment levels and the fact that many young people will not find a job in their lifetime. Social democracy rests on three fundamental features, namely: "(1) parliamentary democracy, (2) an economy partly regulated by the state, and (3) provision of social support to those in need". In practice, social democratic parties have been instrumental in the social-liberal paradigm, lasting from
1903-409: A gradual or evolutionary path to socialism rather than a revolutionary one. Policies commonly supported are Keynesian and include some degree of regulation over the economy , social insurance schemes, public pension programs, and a gradual expansion of public ownership over major and strategic industries. During the late 20th century, those labels were embraced, contested and rejected due to
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#17330858048782076-520: A lack of economic security" is linked to the private ownership of the means of production . Social democracy or social democratic remains controversial among socialists. Some define it as representing a Marxist faction and non-communist socialists or the right-wing of socialism during the split with communism . Others have noted its pejorative use among communists and other socialists. According to Lyman Tower Sargent , " socialism refers to social theories rather than to theories oriented to
2249-519: A liberal capitalist movement, effectively making social democrats similar to non-socialist parties like the Democratic Party in the United States. Nordic model Chronological history The Nordic model comprises the economic and social policies as well as typical cultural practices common in the Nordic countries ( Denmark , Finland , Iceland , Norway , and Sweden ). This includes
2422-611: A neoliberal form of government have registered relatively poorer results. Similarly, several reports have listed Scandinavian and other social democratic countries as ranking high on indicators such as civil liberties , democracy , press , labour and economic freedoms, peace , and freedom from corruption . Numerous studies and surveys indicate that people live happier lives in countries ruled by social democratic parties than those ruled by neoliberal, centrist, and right-wing governments. Other socialists criticize social democracy because it serves to devise new means to strengthen
2595-499: A normal workday, protective legislation, minimum wages." Arguing against those to their left, the party favored moderatism and wanted to help workers in the here and now, and followed the Fabian argument that the policies were steps on the road to socialism, which would not come about through violent revolution but through the social corporative model of welfare capitalism , to be seen as progressive in providing institutional legitimacy to
2768-606: A policy regime. They call the first classical social democracy or classical socialism , and the latter as competitive socialism , liberal socialism , neo-social democracy , or new social democracy . Many socialist parties in several countries have been, or are called Social Democratic . In the 19th century, social democrat was a broad catch-all for international socialists owing their primary ideological allegiance to Lassalle or Marx, in contrast to those advocating various forms of utopian socialism . Many parties in this era described themselves as Social Democrats , including
2941-471: A quarter of the country's gross domestic product . In Sweden, the grand compromise was pushed forward by the Saltsjöbaden Agreement signed by employer and trade union associations at the seaside retreat of Saltsjöbaden in 1938. This agreement provided the foundation for Scandinavian industrial relations throughout Europe's Golden Age of Capitalism . The Swedish model of capitalism developed under
3114-708: A reduction of 10.9 p.p., the effects of tax and transfers on poverty in all the Nordic countries are substantially bigger. In comparison to France (27 p.p. reduction) and Germany (24.2 p.p. reduction), the taxes and transfers in the Nordic countries are smaller on average. The term 'peasant republic' is sometimes applied to certain communities in Scandinavia during the Viking Age and High Middle Ages , especially in Sweden , where royal power seems to have been initially somewhat weak, and in areas of modern day Sweden that were not under
3287-549: A review by Emanuele Ferragina and Martin Seeleib-Kaiser of works about the different models of welfare states, apart from Belgium and the Netherlands, categorized as "medium-high socialism", the Scandinavian countries analyzed (Denmark, Norway, and Sweden) were the only ones to be categorized by sociologist Gøsta Esping-Andersen as "high socialism", which is defined as socialist attributes and values (equality and universalism) and
3460-560: A revolutionary road to socialism. In the 20th century, the term came to be associated with the positions of the German and Swedish parties. The first advocated revisionist Marxism , while the second advocated a comprehensive welfare state . By the 21st century, parties advocating social democracy include Labour, Left, and some Green parties. Most social democratic parties consider themselves democratic socialists and are categorized as socialists. They continue to reference socialism, either as
3633-461: A robust work ethic and considerable social cohesion". According to Luciano Pellicani , the social and political measures adopted in countries like Sweden and Denmark are the same that some other European left-wing politicians theorised to combine justice and freedom , referring to liberal socialism and movements like Giustizia e Libertà and Fabian Society . According to Naomi Klein , former Soviet leader Mikhail Gorbachev sought to move
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#17330858048783806-418: A sizable percentage of the population employed by the public sector (roughly 30% of the work force in areas such as healthcare , education, and government), and a corporatist system with a high percentage of the workforce unionized and involving a tripartite arrangement , where representatives of labour and employers negotiate wages and labour market policy is mediated by the government. As of 2020, all of
3979-404: A socialist form of private property as part of new socialism (although Corfe technically objects to private property as a term to collectively describe property that is not publicly owned as being vague) and rejecting state socialism as a failure. Third Way social democracy was formed in response to what its proponents saw as a crisis in the legitimacy of socialism—especially state socialism—and
4152-448: A variant of capitalism based on the predominance of private property and market allocation mechanisms alongside a set of policies for promoting economic security and opportunity within the framework of a capitalist economy as opposed to a political ideology that aims to replace capitalism. While many countries have been categorized as social democratic , the Nordic countries have been the only ones to be constantly categorized as such. In
4325-452: A weakening of the influence of organized labor." In the 1950s, Olof Palme and the prime minister Tage Erlander formulated the basis of Swedish social democracy and what would become known as the "Swedish model", drawing inspiration from the reformist socialism of party founder Hjalmar Branting , who stated that socialism "would not be created by brutalized...slaves [but by] the best positioned workers, those who have gradually obtained
4498-520: Is based on a "welfare-to-work" (see workfare ) model while part of Finland's welfare state includes the voluntary sector playing a significant role in providing care for the elderly. Norway relies most extensively on public provision of welfare. When it comes to gender equality, the Nordic countries hold one of the smallest gaps in gender employment inequality of all OECD countries, with less than 8 points in all Nordic countries according to International Labour Organization standards. They have been at
4671-446: Is characterized by flexibility and openness to innovation in the provision of welfare. The Nordic welfare systems are mainly funded through taxation . Despite the common values, the Nordic countries take different approaches to the practical administration of the welfare state. Denmark features a high degree of private sector provision of public services and welfare, alongside an assimilation immigration policy. Iceland's welfare model
4844-565: Is conflated either with the pink tide in Latin America, especially with Venezuela, or with communism in the form of Marxist–Leninist socialism as practised in the Soviet Union and other self-declared socialist states . Democratic socialism has been described as representing the left-wing or socialist tradition of the New Deal . The lack of a strong and influential socialist movement in
5017-461: Is defined as one of many socialist traditions . As an international political movement and ideology , it aims to achieve socialism through gradual and democratic means. This definition goes back to the influence of both the reformist socialism of Ferdinand Lassalle and the internationalist revolutionary socialism advanced by Karl Marx and Friedrich Engels . Social democracy has undergone various major forms throughout its history. In
5190-706: Is idealistic to think similar levels of redistribution can be accomplished in countries with weaker labour movements. They say that even in the Scandinavian countries social democracy has been in decline since the weakening of the labour movement in the early 1990s, arguing that the sustainability of social democracy is limited. Roemer and Bardham posit that establishing a market-based socialist economy by changing enterprise ownership would be more effective than social democratic redistribution at promoting egalitarian outcomes, particularly in countries with weak labour movements. Historian Guðmundur Jónsson said that it would be historically inaccurate to include Iceland in one aspect of
5363-442: Is loosely held to be valuable for its emphasis on changing the world for a more just, better future. During the late 19th century and the early 20th century, social democracy was a broad labour movement within socialism that aimed to replace private ownership with social ownership of the means of production, distribution and exchange , taking influence from both Marxism and the supporters of Ferdinand Lassalle . By 1868–1869,
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5536-421: Is most extensive in Norway and Sweden, where employer federations and labour representatives bargain at the national level mediated by the government. Labour market interventions are aimed at providing job retraining and relocation. The Nordic labour market is flexible, with laws making it easy for employers to hire and shed workers or introduce labour-saving technology. To mitigate the negative effect on workers,
5709-408: Is that of advancing those values within a capitalist market economy , as its support for a mixed economy no longer denotes the coexistence between private and public ownership or that between planning and market mechanisms but rather, it represents free markets combined with government intervention and regulations . As a form of reformist democratic socialism , social democracy rejects
5882-416: Is that social democracy aims to strike a balance by advocating for a mixed market economy where capitalism is regulated to address inequalities through social welfare programs and supports private ownership with a strong emphasis on a well-regulated market. In contrast, democratic socialism places greater emphasis on abolishing private property ownership . Nevertheless, the distinction remains blurred and
6055-437: Is that socialists see the welfare state "not merely to provide benefits but to build the foundation for emancipation and self-determination". In the 21st century, a social democratic policy regime may further be distinguished by a support for an increase in welfare policies or an increase in public services . Some distinguish between ideological social democracy as part of the broad socialist movement and social democracy as
6228-488: Is with a quite different form of society that socialists must now concern themselves. Pre-war anti-capitalism will give us very little help", for a new kind of capitalism required a new kind of socialism. Crosland believed that these features of reformed managerial capitalism were irreversible, but it has been argued within the Labour Party and by others that Margaret Thatcher and Ronald Reagan brought about its reversal in
6401-639: Is wrong, saying that "the success of Nordic countries like Sweden – as measured by relatively high living standards accompanied by low poverty, with government-funded education through university, universal health coverage, generous parental-leave policies and long life spans – precedes the contemporary welfare state.", adding that "Research has suggested that the Northern European success story has its roots in cultural rather than economic factors. The Scandinavian countries ... historically developed remarkably high levels of social trust,
6574-649: The Chinese way of doing things before the Chinese', says Torger Reve of the Norwegian Business School." The government also operates a sovereign wealth fund, the Government Pension Fund of Norway , whose partial objective is to prepare Norway for a post-oil future but "unusually among oil-producing nations, it is also a big advocate of human rights – and a powerful one, thanks to its control of
6747-742: The European Economic Community because it demanded a free-market economy among its members. Public ownership never accounted for more than 15–20% of capital formation , further dropping to 8% in the 1980s and below 5% in the 1990s after the rise of neoliberalism. The collapse of the legitimacy of state socialism and Keynesian interventionism (with the discovery of the phenomenon of stagflation ) has been an issue for social democracy. This has provoked re-thinking of how socialism should be achieved by social democrats, including changing views by social democrats on private property—anti-Third Way social democrats such as Robert Corfe have advocated
6920-616: The European Union in the 1970s, reflecting the different political approaches to it among the Nordic countries. The early 1990s recession affected the Nordic countries and caused a deep crisis in Finland, and came amid the context of the dissolution of the Soviet Union and collapse of trade from the Eastern Bloc . Like in Sweden, Finland's universalistic welfare state based on the Nordic model
7093-831: The General German Workers' Association and the Social Democratic Workers' Party of Germany , which merged to form the Social Democratic Party of Germany , the Social Democratic Federation in Britain, and the Russian Social Democratic Labour Party . Social Democrat continued to be used in this context until the Bolshevik Revolution of October 1917, when Communist came into vogue for individuals and organizations espousing
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7266-627: The German Empire between the 1880s and 1890s, when the conservative Chancellor Otto von Bismarck put in place many social welfare proposals initially suggested by the Social Democrats to hinder their electoral success after he instituted the Anti-Socialist Laws , laying the ground of the first modern welfare state . Those policies were dubbed State Socialism by the liberal opposition, but Bismarck later accepted and re-appropriated
7439-712: The Great Depression , economic interventionism and nationalizations became more common worldwide and the post-war consensus until the 1970s saw Keynesian social democratic and mixed economy policies put in place, leading to the post-World War II boom in which the United States, the Soviet Union, the Western European, and East Asian countries experienced unusually high and sustained economic growth , together with full employment . Contrary to early predictions, this period of high economic growth and national development also included many countries that were devastated by
7612-642: The Great Recession in the late 2000s and early 2010s cast doubts on the Washington Consensus , and protests against austerity measures ensued. There was a resurgence of social democratic parties and policies, especially in the United States and the United Kingdom, with the rise of politicians such as Bernie Sanders and Jeremy Corbyn , who rejected the Third Way, after the economic recession caused
7785-644: The Italian Liberal Party . The list won 3.8% of the vote, thus failing to surpass the 5% electoral threshold. In May 2009 the party joined the Union of the Centre . Social democracy Social democracy is a social , economic , and political philosophy within socialism that supports political and economic democracy and a gradualist , reformist and democratic approach toward achieving limited socialism. In modern practice, social democracy has taken
7958-522: The Labour and Conservative parties, famously dubbed Butskellism . Some social democratic Third Way figures such as Anthony Giddens and Tony Blair , who has described himself as a Christian socialist and a socialist in ethical terms, insist that they are socialists, for they claim to believe in the same values that their anti-Third Way critics do. According to those self-proclaimed social democratic modernizers, Clause IV 's open advocacy of state socialism
8131-476: The National Health Service and Labour's welfare state development. This social-liberal paradigm represented the post-war consensus and was accepted across the political spectrum by conservatives, liberals and socialists until the 1970s. Similarly, the neoliberal paradigm, which replaced the previous paradigm, was accepted across the mainstream political parties, including social democratic supporters of
8304-550: The Nordic model , and welfare states . Social democracy has been described as the most common form of Western or modern socialism. Amongst social democrats, attitudes towards socialism vary: some retain socialism as a long-term goal, with social democracy being a political and economic democracy supporting a gradualist , reformist , and democratic approach towards achieving socialism. Others view it as an ethical ideal to guide reforms within capitalism. One way social democracy can be distinguished from democratic socialism
8477-553: The Pasokification of many social democratic parties. The United Nations World Happiness Report shows that the happiest nations are concentrated in social democratic nations, especially in Northern Europe, where the Nordic model is applied. This is at times attributed to the success of the social democratic Nordic model in the region, where similar democratic socialist , labourist , and social democratic parties dominated
8650-524: The Russian Revolution , it came to refer to reformist socialists that are opposed to the authoritarian and centralized Soviet model of socialism. In the post-war era, social democrats embraced mixed economies with a predominance of private property and promoted the regulation of capitalism over its replacement with a qualitatively different socialist economic system . Since then, social democracy has been associated with Keynesian economics ,
8823-540: The Soviet Union in a similar direction to the Nordic system, combining free markets with a social safety net, but still retaining public ownership of key sectors of the economy – ingredients that he believed would transform the Soviet Union into "a socialist beacon for all mankind." The Nordic model has also been positively received by various social scientists and economists. American professor of sociology and political science Lane Kenworthy advocates for
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#17330858048788996-461: The Thing or Moot . The Nordic model traces its foundation to the "grand compromise" between workers and employers spearheaded by farmer and worker parties in the 1930s. Following a long period of economic crisis and class struggle, the "grand compromise" served as the foundation for the post-World War II Nordic model of welfare and labour market organization. The key characteristics of the Nordic model were
9169-535: The arms industry . In 2013, The Economist described its countries as "stout free-traders who resist the temptation to intervene even to protect iconic companies", while also looking for ways to temper capitalism's harsher effects and declared that the Nordic countries "are probably the best-governed in the world." Some economists have referred to the Nordic economic model as a form of "cuddly capitalism", with low levels of inequality, generous welfare states, and reduced concentration of top incomes, contrasting it with
9342-491: The economic and technological determinism generally characteristic of orthodox Marxism and economic liberalism . By the post- World War II period and its economic consensus and expansion , most social democrats in Europe had abandoned their ideological connection to orthodox Marxism. They shifted their emphasis toward social policy reform as a compromise between capitalism to socialism . According to Michael Harrington ,
9515-584: The labour movement by recognizing the existence of the class conflict between the bourgeoisie and the proletariat as a class compromise within the context of existing class conflict. This Swedish model was characterized by a strong labour movement as well as inclusive publicly funded and often publicly administered welfare institutions. By the early 1980s, the Swedish model began to suffer from international imbalances, declining competitiveness and capital flight. Two polar opposite solutions emerged to restructure
9688-406: The oppression of underprivileged groups, eradicating poverty , and upholding universally accessible public services such as child care , education , elderly care , health care , and workers' compensation . Economically, it supports income redistribution and regulating the economy in the public interest . Social democracy has a strong, long-standing connection with trade unions and
9861-434: The social cohesion in the Nordic countries. Among political scientists and sociologists, the term social democracy has become widespread to describe the Nordic model due to the influence of social democratic party governance in Sweden and Norway, in contrast to other classifications such as liberal or Christian democratic. According to sociologist Lane Kenworthy , the meaning of social democracy in this context refers to
10034-492: The social liberal paradigm, which was followed by the neoliberal paradigm by the 1980s and 1990s. According to Phillip O'Hara, "Sweden eventually became part of the Great Capitalist Restoration of the 1980s and 1990s. In all the industrial democracies and beyond, this recent era has seen the retrenchment of the welfare state by reduced social spending in real terms, tax cuts, deregulation and privatization, and
10207-454: The 1940s and 1970s, and called such because it was developed by social liberals but implemented by social democrats. Since those policies were mostly implemented by social democrats, social liberalism is sometimes called social democracy . In Britain, the social-liberal Beveridge Report drafted by the Liberal economist William Beveridge influenced the Labour Party 's social policies, such as
10380-458: The 1970s and 1980s. Although the post-war consensus represented a period where social democracy was "most buoyant", it has been argued that "post-war social democracy had been altogether too confident in its analysis" because "gains which were thought to be permanent turned out to be conditional and as the reservoir of capitalist growth showed signs of drying up". In Socialism Now (1974), Crosland argued that "[m]uch more should have been achieved by
10553-590: The 1980s and the financial crises of the 1990s which led to more restrictive budgetary policies that were most pronounced in Sweden and Iceland. Nonetheless, welfare expenditure remained high in these countries, compared to the European average. Social welfare reforms emerged from the Kanslergade Agreement of 1933 as part of a compromise package to save the Danish economy. Denmark was the first Nordic country to join
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#173308580487810726-458: The 1990s reforms was the substantial growth of mutual fund savings, which largely began with the government subsidizing mutual fund savings through the so-called Allemansfonder program in the 1980s; today 4 out of 5 people aged 18–74 have fund savings. The state of Norway has ownership stakes in many of the country's largest publicly listed companies, owning 37% of the Oslo stock market and operating
10899-503: The 19th century, it encompassed various non-revolutionary and revolutionary currents of socialism, excluding anarchism . In one of the first scholarly works on European socialism written for an American audience, Richard T. Ely 's 1883 book French and German Socialism in Modern Times , social democrats were characterized as "the extreme wing of the socialists" who were "inclined to lay so much stress on equality of enjoyment, regardless of
11072-411: The 20th century. In political science, democratic socialism and social democracy are sometimes seen as synonyms, while they are distinguished in journalistic use. Under this democratic socialist definition, social democracy is an ideology seeking to gradually build an alternative socialist economy through the institutions of liberal democracy . Starting in the post-war period, social democracy
11245-572: The 21st century, European social democratic parties represent the centre-left and most are part of the Party of European Socialists , while democratic socialist parties are to their left within the Party of the European Left . Many of those social democratic parties are members of the Socialist International , including several democratic socialist parties, whose Frankfurt Declaration declares
11418-514: The Communists sought to distance themselves from to Social Democracy 's association with reformism. The Communists also sought to distinguish themselves from the socialists that had supported the imperialist Great War and thus betrayed proletarian internationalism . This reformist–revolutionary division culminated in the German Revolution of 1919 , in which the Communists wanted to overthrow
11591-543: The Gaitskellites, nationalization was not essential to achieve all major socialist objectives; public ownership and nationalization were not explicitly rejected but were seen as merely one of numerous useful devices. According to social democratic modernizers like Blair, nationalization policies had become politically unviable by the 1990s. During the Third Way development of social democracy, social democrats adjusted to
11764-704: The German government and establish a soviet republic like Russia, while the Social Democrats wanted to preserve it as what came to be known as the Weimar Republic . Thus social democracy went from a "Marxist revolutionary" doctrine into a form of "moderate parliamentary socialism". The Bolsheviks split from the Second International and created their own separate Communist International (Comintern) in 1919 that sought to rally revolutionary social democrats together for socialist revolution. With this split,
11937-604: The Marxist analysis that the creation of socialism is interconnected with the evolution of capitalism. August Bebel , Bernstein, Engels, Wilhelm Liebknecht , Marx, and Carl Wilhelm Tölcke are all considered founders of social democracy in Germany. However, Bernstein and Lassalle, along with labourists and reformists such as Louis Blanc in France, led to the widespread association of social democracy with socialist reformism. While Lassalle
12110-512: The Nobel peace prize." Norway is the only major economy in the north of Europe where younger generations are getting richer, with a 13% increase in disposable income income for 2018, bucking the trend seen in other european-northern nations of Millennials becoming poorer than the generations which came before. Social democrats have played a pivotal role in shaping the Nordic model, with policies enacted by social democrats being pivotal in fostering
12283-628: The Nordic countries rank highly on the inequality-adjusted HDI and the Global Peace Index as well as being ranked in the top 10 on the World Happiness Report . The Nordic model was originally developed in the 1930s under the leadership of social democrats , although centrist and right-wing political parties, as well as labour unions, also contributed to the Nordic model's development. The Nordic model began to gain attention after World War II and has transformed in some ways over
12456-514: The Nordic countries, they all have some common traits. The three Scandinavian countries are constitutional monarchies , while Finland and Iceland have been republics since the 20th century. All the Nordic countries are however described as being highly democratic and all have a unicameral legislature and use proportional representation in their electoral systems . They all support a universalist welfare state aimed specifically at enhancing individual autonomy and promoting social mobility , with
12629-502: The Nordic countries, it retains national-level sectoral bargaining unlike Denmark and Iceland , with over 650 national-level bargaining agreements, it retains the Ghent system unlike Norway and Iceland and consequently has the second-highest rate of unionization in the world. Despite being one of the most equal OECD nations, from 1985 to the 2010s Sweden saw the largest growth in income inequality among OECD economies. Other effects of
12802-449: The Nordic model in Sweden and Norway, whereas in Iceland and Finland, right-wing political parties played a much more significant role in shaping their countries' social models. However, even in Iceland and Finland, strong labour unions contributed to the development of universal welfare. Social security and collective wage bargaining policies were rolled back following economic imbalances in
12975-467: The Nordic model is "the proof that modern capitalism can be combined with decency, fairness, trust, honesty, and environmental sustainability." The Nordic combination of extensive public provision of welfare and a culture of individualism has been described by Lars Trägårdh of Ersta Sköndal University College as " statist individualism ." A 2016 survey by the think tank Israel Democracy Institute found that nearly 60 percent of Israeli Jews preferred
13148-520: The Nordic model to a kind of "hybrid" system which features a blend of capitalist economics with socialist values, representing an alternative to American-style capitalism . Vermont Senator Bernie Sanders has pointed to Scandinavia and the Nordic model as something the United States can learn from, in particular with respect to the benefits and social protections the Nordic model affords workers and its provision of universal healthcare. Scandinavian political scientist Daniel Schatz argued that Sanders
13321-402: The Nordic model's parentage also stems from a mixture of mainly social democratic, centrist , and right-wing political parties, especially in Finland and Iceland, along with the social trust that emerged from the "great compromise" between capital and labour. The influence of each of these factors on each Nordic country varied as social democratic parties played a larger role in the formation of
13494-533: The Nordic model, that of consensus democracy . Addressing the time period from 1950 to 2000, Jónsson writes that "Icelandic democracy is better described as more adversarial than consensual in style and practice. The labour market was rife with conflict and strikes more frequent than in Europe, resulting in strained government–trade union relationship. Secondly, Iceland did not share the Nordic tradition of power-sharing or corporatism as regards labour market policies or macro-economic policy management, primarily because of
13667-658: The Swedish economy, the first being a transition to socialism by socializing the ownership of industry and the second providing favorable conditions for the formation of private capital by embracing neoliberalism. The Swedish model was first challenged in 1976 by the Meidner Plan promoted by the Swedish Trade Union Confederation and trade unions which aimed at the gradual socialization of Swedish companies through wage earner funds. The Meidner Plan aimed to collectivize capital formation in two generations by having
13840-401: The Third Way. This has caused much controversy within the social democratic movement. From the late 19th century until the mid to late 20th century, there was greater public confidence in the idea of a state-managed economy that was a major pillar of communism, and to a substantial degree by conservatives and left-liberals . Aside from anarchists and other libertarian socialists , there
14013-504: The United Kingdom (the latter in the form of the Liberal welfare reforms ), with both socialist and liberal parties adopting those policies. In the United States, the progressive movement , a similar social democratic movement predominantly influenced more by social liberalism than socialism , supported progressive liberals such as Democratic presidents Woodrow Wilson and Franklin D. Roosevelt , whose New Freedom and New Deal programmes adopted many social democratic policies. With
14186-476: The United States as representing European social democracy. South Africa has been governed by the African National Congress (ANC), a social democratic party, since 1994. In 2022, The World Economic Forum said that South Africa risks state collapse and identified five major risks facing the country. Former minister Jay Naidoo has said that South Africa is in serious trouble and is showing signs of
14359-492: The United States has been linked to the Red Scare , and any ideology associated with socialism brings social stigma due to its association with authoritarian socialist states . Socialism has been used as a pejorative term by members of the political right to stop the implementation of liberal and progressive policies and proposals and to criticize the public figures trying to implement them. Although Americans may reject
14532-430: The United States to make a gradual transition toward a social democracy similar to those of the Nordic countries, defining social democracy as such: "The idea behind social democracy was to make capitalism better. There is disagreement about how exactly to do that, and others might think the proposals in my book aren't true social democracy. But I think of it as a commitment to use government to make life better for people in
14705-465: The United States, where it is tied to the New Deal . Some democratic socialists who follow social democracy support practical, progressive reforms of capitalism and are more concerned with administrating and humanising it, with socialism relegated to the indefinite future. Other democratic socialists want to go beyond mere meliorist reforms and advocate the systematic transformation of the mode of production from capitalism to socialism . Despite
14878-423: The United States, in order to "stand as a beacon for the rest of the world in the 21st century." Swedish economist John Gustavsson, writing for American conservative magazine The Dispatch , criticized the Nordic model for its high taxation rates, including on the middle class and poor people. Political scientist Michael Cottakis has noted the rise of right-wing populist and anti-immigration sentiment in
15051-468: The auspices of the Swedish Social Democratic Party which assumed power in 1932 and retained uninterrupted power until 1976. Initially differing very little from other industrialized capitalist countries, the state's role in providing comprehensive welfare and infrastructure expanded after the Second World War until reaching a broadly social democratic consensus in the 1950s which would become known as
15224-552: The bottom of the Sustainable Development Index. He argues that the model needs to be updated for the Anthropocene , and reduce overconsumption while retaining the positive elements of progressive social democracy including universal healthcare and education, paid vacations and reasonable working hours, which have resulted in much better health outcomes and poverty reduction compared to overtly neoliberal countries like
15397-432: The broader labour movement . It is supportive of measures to foster greater democratic decision-making in the economic sphere , including co-determination , collective bargaining rights for workers, and expanding ownership to employees and other stakeholders . The history of social democracy stretches back to the 19th-century labour movement . Originally a catch-all term for socialists of varying tendencies, after
15570-410: The capitalist system, which conflicts with the socialist goal of replacing capitalism with a socialist system. According to this view, social democracy fails to address the systemic issues inherent in capitalism. The American democratic socialist philosopher David Schweickart contrasts social democracy with democratic socialism by defining the former as an attempt to strengthen the welfare state and
15743-548: The centralized coordination of wage negotiation between employers and labour organizations , termed a social partnership, as well as providing a peaceful means to address class conflict between capital and labour. Magnus Bergli Rasmussen has challenged that farmers played an important role in ushering Nordic welfare states. A 2022 study by him found that farmers had strong incentives to resist welfare state expansion and farmer MPs consistently opposed generous welfare policies. Although often linked to social democratic governance,
15916-427: The country's largest non-listed companies, including Equinor and Statkraft . In January 2013, The Economist reported that "after the second world war the government nationalised all German business interests in Norway and ended up owning 44% of Norsk Hydro's shares. The formula of controlling business through shares rather than regulation seemed to work well, so the government used it wherever possible. 'We invented
16089-563: The degree of control varying among the proponents of socialism) over the means of production, distribution, and exchange", and "there was agreement that the outcomes of this collective control should be a society that provided social equality and justice, economic protection, and generally a more satisfying life for most people". Socialism became a catch-all term for the critics of capitalism and industrial society. Social democrats are anticapitalists insofar as criticism about "poverty, low wages, unemployment, economic and social inequality, and
16262-413: The dominant traditional religion of the Nordic countries, had an effect on the development of social democracy there. Schröder posits that Lutheranism promoted the idea of a nationwide community of believers and led to increased state involvement in economic and social life, allowing for nationwide welfare solidarity and economic co-ordination. Esa Mangeloja says that the revival movements helped to pave
16435-621: The early 21st centuries. As the number of people in traditional working-class occupations such as factory workers and miners declined, socialists have successfully widened their appeal to the middle class by diluting their ideology; however, there is still continuity between parties such as the SPD, the Labour Party in Britain, and other socialist parties which remain part of the same famille spirituelle , or ideological party family, as outlined by most political scientists. For many social democrats, Marxism
16608-477: The economy and opposes what is seen as inequality and oppression that laissez-faire capitalism causes. In the 21st century, it has become commonplace to define social democracy in reference to Northern and Western European countries, and their model of a welfare state with a corporatist system of collective bargaining . Social democracy has also been used synonymously with the Nordic model . Henning Meyer and Jonathan Rutherford associate social democracy with
16781-596: The economy and retaining significant social regulations. When nationalization of large industries was relatively widespread in the 20th century until the 1970s, it was not uncommon for commentators to describe some European social democracies as democratic socialist states seeking to move their countries toward a socialist economy . In 1956, leading Labour Party politician and British author Anthony Crosland said that capitalism had been abolished in Britain, although others such as Welshman Aneurin Bevan , Minister of Health in
16954-438: The economy that the state could best manage and rejected a mass scale of state ownership as being too burdensome to be manageable. Bernstein was an advocate of Kantian socialism and neo-Kantianism . Although unpopular early on, his views became mainstream after World War I. In The Future of Socialism (1956), Anthony Crosland argued that "traditional capitalism has been reformed and modified almost out of existence, and it
17127-451: The economy, some political commentators stated that during the post-war period, when social democratic parties were in power, countries such as Britain and France were democratic socialist states. The same claim has been applied to Nordic countries with the Nordic model. In the 1980s, the government of President François Mitterrand aimed to expand dirigism and attempted to nationalize all French banks, but this attempt faced opposition from
17300-453: The effects of taxes and transfers stood at 24.7% in Denmark, 31.9% in Finland, 21.6% in Iceland, 25.6% in Norway, and 26.5% in Sweden. After accounting for taxes and transfers, the poverty rates for the same year became 6%, 7.5%, 5.7%, 7.7% and 9.7% respectively, for an average reduction of 18.7 p.p. Compared to the United States, which has a poverty level pre-tax of 28.3% and post-tax of 17.4% for
17473-413: The efficiency of the capitalist system by reducing incentives for capitalists to invest in further production. The welfare state only serves to legitimize and prolong the exploitative and contradiction-laden system of capitalism to society's detriment. Critics of contemporary social democracy, such as Jonas Hinnfors, argue that when social democracy abandoned Marxism , it also abandoned socialism and became
17646-425: The either/or interpretation of capitalism versus socialism. It claims that fostering a progressive evolution of capitalism will gradually result in the evolution of a capitalist economy into a socialist economy. All citizens should be legally entitled to certain social rights: universal access to public services such as education, health care, workers' compensation, and other services, including child care and care for
17819-889: The elderly. Social democrats advocate freedom from discrimination based on differences in ability/disability, age, ethnicity , gender , language, race, religion, sexual orientation , and social class . Later in their lives, Karl Marx and Friedrich Engels argued that in some countries, workers might be able to achieve their aims through peaceful means. In this sense, Engels argued that socialists were evolutionists, although both Marx and Engels remained committed to social revolution . In developing social democracy, Eduard Bernstein rejected orthodox Marxism 's revolutionary and materialist foundations. Rather than class conflict and socialist revolution , Bernstein's Marxist revisionism reflected that socialism could be achieved through cooperation between people regardless of class. Nonetheless, Bernstein paid deference to Marx, describing him as
17992-530: The emergence of developments within the European left, such as Eurocommunism , the rise of neoliberalism, the fall of the Soviet Union and the Revolutions of 1989 , the Third Way , and the rise of anti-austerity and Occupy movements due to the global financial crisis of 2007–2008 and the Great Recession , the causes of which have been attributed by some to the neoliberal shift and deregulation economic policies. This latest development contributed to
18165-502: The end of the post-war boom. The Social Democrats adopted monetarist and neoliberal policies, deregulating the banking industry, and liberalizing currency in the 1980s. The economic crisis of the 1990s saw greater austerity measures, deregulation, and the privatization of public services. Into the 21st century, it greatly affected Sweden and its universalistic welfare state, although not as hard as Finland. Sweden remained more Eurosceptic than Finland, and its struggles affected all
18338-711: The exception of Norway which includes a large number of state-owned enterprises and state ownership in publicly listed firms. The Nordic model is described as a system of competitive capitalism combined with a large percentage of the population employed by the public sector , which amounts to roughly 30% of the work force, in areas such as healthcare and higher education . In Norway, Finland, and Sweden, many companies and/or industries are state-run or state-owned like utilities , mail , rail transport , airlines , electrical power industry , fossil fuels , chemical industry , steel mill , electronics industry , machine industry , aerospace manufacturer , shipbuilding , and
18511-451: The father of social democracy but declaring that it was necessary to revise Marx's thought in light of changing conditions. Influenced by the gradualist platform favoured by the Fabian movement in Britain, Bernstein advocated a similar evolutionary approach to socialist politics that he termed evolutionary socialism . Evolutionary means include representative democracy and cooperation between people regardless of class. Bernstein accepted
18684-445: The first post-war Labour government and the architect of the National Health Service , disputed the claim. For Crosland and others who supported his views, Britain was a socialist state. According to Bevan, Britain had a socialist National Health Service , which opposed the hedonism of Britain's capitalist society. Although, as in the rest of Europe, the laws of capitalism still operated fully and private enterprise dominated
18857-401: The forefront of championing gender equality and this has been historically shown by substantial increases in women's employment. Between 1965 and 1990, Sweden's employment rate for women in working-age (15–64) went from 52.8% to 81.0%. In 2016, nearly three out of every four women in working-age in the Nordic countries were taking part in paid work. Nevertheless, women are still the main users of
19030-440: The form of predominantly capitalist economies, with the state regulating the economy in the form of welfare capitalism , economic interventionism , partial public ownership , a robust welfare state , policies promoting social equality , and a more equitable distribution of income . Social democracy maintains a commitment to representative and participatory democracy . Common aims include curbing inequality , eliminating
19203-537: The framework of democratic capitalism . Social democracy currently depicts a chiefly capitalist economy with state economic regulation in the general interest, state provision of welfare services and state redistribution of income and wealth. Social democratic concepts influence the policies of most Western states since World War 2. Social democracy is frequently considered a practical middle course between capitalism and socialism. Social democracy aims to use democratic collective action for promoting freedom and equality in
19376-481: The front of the implementation of policies that promote gender equality; the Scandinavian governments were some of the first to make it unlawful for companies to dismiss women on grounds of marriage or motherhood. Mothers in Nordic countries are more likely to be working mothers than in any other region and families enjoy pioneering legislation on parental leave policies that compensate parents for moving from work to home to care for their child, including fathers. Although
19549-537: The goal of developing democratic socialism. Others are also part of the Progressive Alliance , founded in 2013 by most contemporary or former member parties of the Socialist International. Social democracy has been seen as a revision of orthodox Marxism , although this has been described as misleading for modern social democracy. Marxist revisionist Eduard Bernstein 's views influenced and laid
19722-492: The government at the national level. During the post-war consensus , this form of social democracy has been a major component of the Nordic model and, to a lesser degree, the West European social market economies . The development of social corporatism began in Norway and Sweden in the 1930s and was consolidated in the 1960s and 1970s. The system was based upon the dual compromise of capital and labour as one component and
19895-561: The government labour market policies are designed to provide generous social welfare, job retraining and relocation services to limit any conflicts between capital and labour that might arise from this process. The Nordic welfare model refers to the welfare policies of the Nordic countries, which also tie into their labour market policies. The Nordic model of welfare is distinguished from other types of welfare states by its emphasis on maximising labour force participation, promoting gender equality , egalitarian , and extensive benefit levels,
20068-399: The gradual abolition of capitalism and social democrats opposed to the Third Way merged into democratic socialism. Although social democracy originated as a revolutionary socialist or communist movement, one distinction between democratic socialism and social democracy is that the former can include revolutionary means. The latter proposes representative democracy under the rule of law as
20241-401: The groundwork for developing post-war social democracy as a policy regime, Labour revisionism , and the neo-revisionism of the Third Way . This definition of social democracy is focused on ethical terms, with the type of socialism advocated being ethical and liberal . Bernstein described socialism and social democracy in particular as organized liberalism; in this sense, liberalism is
20414-421: The idea that the United States has characteristics of a European-style social democracy, it has been argued by some observers that it has a comfortable social safety net , albeit severely underfunded in comparison to other Western countries. It has also been argued that many policies that may be considered socialist are popular but that socialism is not. Others, such as Tony Judt , described modern liberalism in
20587-412: The implementation of market-oriented , monetarist , and neoliberal policies ( privatization , deregulation , free trade , economic globalization , and anti- inflationary fiscal policy , among others), the social democratic welfare state was put in doubt. This caused several social democratic parties to adopt the Third Way , a centrist ideology combining social democracy with neoliberalism; however,
20760-452: The importance of social corporatism to social democracy in his work Economic Democracy: The Politics of a Feasible Socialism (1995). As a welfare state, social democracy is a specific type of welfare state and policy regime described as being universalist, supportive of collective bargaining, and more supportive of public provision of welfare. It is especially associated with the Nordic model. Social democratic policies were first adopted in
20933-406: The individual. Because many communists now call themselves democratic socialists , it is sometimes difficult to know what a political label really means. As a result, social democratic has become a common new label for democratic socialist political parties." As a policy regime, social democracy entails support for a mixed economy and ameliorative measures to benefit the working class within
21106-502: The influence of politicians like Carlo Rosselli in Italy, social democrats began disassociating themselves from orthodox Marxism altogether as represented by Marxism–Leninism , embracing liberal socialism , Keynesianism , and appealing to morality rather than any consistent systematic, scientific , or materialist worldview. Social democracy appealed to communitarian , corporatist , and sometimes nationalist sentiments while rejecting
21279-621: The interests of the people through their representatives' influence, an argument echoed by some socialists in post-war Britain. Advents in economics and observation of the failure of state socialism in the Eastern Bloc countries and the Western world with the crisis and stagflation of the 1970s, combined with the neoliberal rebuke of state interventionism , resulted in socialists re-evaluating and redesigning socialism. Some social democrats have sought to keep what they deem are socialism's core values while changing their position on state involvement in
21452-451: The key drivers of greater mobility. Additionally, Denmark's greater investment in public education did not improve educational mobility significantly, meaning children of non-college educated parents are still unlikely to receive college education, although this public investment did result in improved cognitive skills amongst poor Danish children compared to their American peers. There was evidence that generous welfare policies could discourage
21625-422: The large magnitude of income redistribution and liberal use of expansionary fiscal policy. While there are differences among the Nordic countries, they all share a broad commitment to social cohesion , a universal nature of welfare provision in order to safeguard individualism by providing protection for vulnerable individuals and groups in society, and maximising public participation in social decision-making. It
21798-419: The last few decades, including increased deregulation and expanding privatization of public services . However, it is still distinguished from other models by the strong emphasis on public services and social investment. The Nordic model has been characterized as follows: The Nordic model is underpinned by a mixed-market capitalist economic system that features high degrees of private ownership, with
21971-533: The latter as an alternative economic system to capitalism. According to Schweickart, the democratic socialist critique of social democracy is that capitalism can never be sufficiently humanized and that any attempt to suppress its economic contradictions will only cause them to emerge elsewhere. He gives the example that attempts to reduce unemployment too much would result in inflation, and too much job security would erode labour discipline. In contrast to social democracy's mixed economy , democratic socialists advocate
22144-475: The long history of overlap between the two, with social democracy considered a form of democratic or parliamentary socialism and social democrats calling themselves democratic socialists, democratic socialism is considered a misnomer in the United States. One issue is that social democracy is equated with wealthy countries in the Western world, especially in Northern and Western Europe, while democratic socialism
22317-531: The lowest poverty rate in the OECD of only 4.9%. Norway's "grand compromise" emerged as a response to the crisis of the early 1930s between the trade union confederation and Norwegian Employers' Association , agreeing on national standards in labour–capital relations and creating the foundation for social harmony throughout the period of compromises. For a period between the 1980s and the 1990s, Norway underwent more neoliberal reforms and marketization than Sweden during
22490-667: The market and the state as the other. From the 1940s through the 1970s, defining features of social democracy as a policy regime included Keynesian economic policies and industrial agreements to balance the power of capital and labour and the welfare state. This is especially associated with the Swedish Social Democrats . In the 1970s, social corporatism evolved into neo-corporatism , which replaced it. Neo-corporatism has represented an important concept of Third Way social democracy . Social democratic theorist Robin Archer wrote about
22663-409: The market by using capitalism as a tool to benefit everyone" whereas in the United States " neoliberal politics puts the foxes in charge of the henhouse, and capitalists have used the wealth generated by their enterprises (as well as financial and political manipulations) to capture the state and pluck the chickens." Economist Jeffrey Sachs is a proponent of the Nordic model, having pointed out that
22836-440: The more "cut-throat capitalism" of the United States, which has high levels of inequality and a larger concentration of top incomes, among other social inequalities. As a result of the Sweden financial crisis of 1990–1994 , Sweden implemented economic reforms that were focused on deregulation and the strengthening of competition laws . Despite this however, Sweden still has the highest government spending-to-GDP ratio of all
23009-433: The neoliberal political climate that had existed since the 1980s. Those social democrats recognized that outspoken opposition to capitalism was politically non-viable and that accepting the powers that be , seeking to challenge free-market and laissez-faire variations of capitalism, was a more immediate concern. The Third Way stands for a modernized social democracy, but the social democracy that remained committed to
23182-558: The only Nordic country to become a Eurozone member state after fully adopting the euro as its official currency in 2002. According to analyst Harpa Njálsdóttir, Iceland in the late 2010s moved away from the Nordic model towards the economic liberal model of workfare . She also noted that with the large changes having been made to the social security system, "70% of elderly people now live well below national subsistence criteria, while about 70% of those who live alone and in bad conditions are women." Despite this, as of 2021, Iceland has
23355-784: The only acceptable constitutional form of government. During the Great Recession, Social Democratic parties in Europe increasingly adopted austerity as a policy response to the economic crisis, shifting away from the traditional Keynesian response of deficit spending . According to Björn Bremer, this shift in thinking was due to the influence of supply-side economics on Social Democratic leaders and by electoral motivations whereby Social Democrats wanted to appear economically competent to voters by adopting orthodox fiscal policies. Social democracy has some significant overlap in practical policy positions with democratic socialism, although they are usually distinguished from each other. In Britain,
23528-463: The other Nordic countries, as it was seen as "the guiding star of the north", and with Sweden fading away, other Nordic countries also felt like they were losing their political identities. When the Nordic model was then gradually rediscovered, cultural explanations were sought for the special features of the Nordic countries. The Nordic model has been positively received by some American politicians and political commentators. Jerry Mander has likened
23701-498: The position that socialism should be grounded in ethical and moral arguments and achieved through gradual legislative reform . Bernstein's ideas were initially not well received; his party maintained the position that reforms should be pursued only as a means to an eventual revolution, not as a substitute for it. Yet, Bernstein's ideas would have growing influence, particularly after the First World War. The Russian Revolution
23874-447: The predecessor and precursor of socialism, whose restricted view of freedom is to be socialized , while democracy must entail social democracy. For those social democrats, who still describe and see themselves as socialists, socialism is used in ethical or moral terms, representing democracy, egalitarianism, and social justice rather than a specifically socialist economic system. Under this type of definition, social democracy's goal
24047-400: The prediction that the working class was the decisive class with the development of capitalism. In their view, this did not materialize in the aftermath of mass industrialization during World War II. In Britain, the social democratic Gaitskellites emphasized the goals of personal liberty , social welfare , and social equality . The Gaitskellites were part of a political consensus between
24220-668: The primary reason for this was the perspective that viewed the Stalinist-era Soviet Union as having succeeded in usurping the legacy of Marxism and distorting it in propaganda to justify totalitarianism . In its foundation, the Socialist International denounced the Bolshevik-inspired communist movement, "for [it] falsely claims a share in the Socialist tradition". Furthermore, core tenets of Marxism have been regarded by social democrats as having become obsolete, including
24393-525: The prospect of a new socialism was "a chimera, a hopeful invention of Western socialists who had not understood how ' actually existing socialism ' had totally discredited any version of socialism among those who had lived under it". Social democracy influenced the development of social corporatism , a form of economic tripartite corporatism based upon a social partnership between the interests of capital and labour , involving collective bargaining between representatives of employers and labour mediated by
24566-615: The pursuit of higher-level education due to decreasing the economic benefits that college education level jobs offer and increasing welfare for workers of a lower education level. Some welfare and gender researchers based in the Nordic countries suggest that these states have often been over-privileged when different European societies are being assessed in terms of how far they have achieved gender equality. They posit that such assessments often utilise international comparisons adopting conventional economic, political, educational, and well-being measures. By contrast, they suggest that if one takes
24739-474: The reformists founded the Labour and Socialist International (LSI) in 1923. The LSI had a history of rivalry with the Comintern, with which it competed over the leadership of the international socialist and labour movement. During the 1920s and 1930s, social democracy became dominant in the socialist movement, mainly associated with reformist socialism while communism represented revolutionary socialism. Under
24912-544: The region's political scene and laid the ground for their universal welfare states in the 20th century. The Nordic countries, including Denmark, Finland, Iceland, Norway, and Sweden, as well as Greenland and the Faroe Islands, also ranks highest on the metrics of real GDP per capita , economic equality , public health , life expectancy , solidarity , perceived freedom to make life choices , generosity , quality of life , and human development , while countries practising
25085-450: The reliance on family and market." According to Johan Strang, since the 1990s, politicians, researchers and the media have shifted to explaining the Nordic model with cultural rather than political factors. These cultural explanations benefit neoliberalism , whose rise this cultural phenomenon coincided with. By the 2010s, politics has been re-entering the conversation on the Nordic model. Some academics have theorized that Lutheranism ,
25258-400: The rest of the world with inequality, ill-health and needless poverty," economic anthropologist Jason Hickel sharply criticizes the "ecological disaster" that accompanies it, noting that data shows the Nordic countries "have some of the highest levels of resource use and CO2 emissions in the world, in consumption based terms, drastically overshooting safe planetary boundaries," and rank towards
25431-518: The revised version of Clause IV to the Labour Party Constitution , which was implemented in the 1990s by the New Labour faction led by Tony Blair , affirms a formal commitment to democratic socialism, describing it as a modernized form of social democracy; however, it no longer commits the party to public ownership of industry and in its place advocates "the enterprise of the market and
25604-412: The rigour of competition" along with "high quality public services either owned by the public or accountable to them". Many social democrats "refer to themselves as socialists or democratic socialists", and some such as Blair "use or have used these terms interchangeably". Others argue that "there are clear differences between the three terms, and preferred to describe their own political beliefs by using
25777-551: The rise of politicians, such as Jeremy Corbyn in Britain and Bernie Sanders in the United States, who rejected centrist politicians that supported triangulation within the Labour and Democratic parties. According to both right-wing critics and supporters alike, policies such as universal health care and education are "pure Socialism" because they are opposed to "the hedonism of capitalist society". Because of this overlap, democratic socialism refers to European socialism as represented by social democracy, especially in
25950-442: The rising legitimacy of neoliberalism, especially laissez-faire capitalism. The Third Way's view of the crisis is criticized for being too simplistic. Others have criticized it because with the fall of state socialism, it was possible for "a new kind of 'third way' socialism (combining social ownership with markets and democracy), thereby heralding a revitalization of the social democratic tradition"; however, it has been argued that
26123-520: The rule of the Swedish king yet, as well as in Iceland where the Icelandic Commonwealth serves as an example of an unusually large and sophisticated peasant republic building on the same democratic traditions. Some historians have also argued that Gotland was a peasant republic before the attack by the Danes in 1361 . Central for the old Scandinavian democratic traditions was the assemblies called
26296-635: The same time frame, while still holding to the traditional foundations of the "social democratic compromise" that was specific to Western capitalism from 1945 to 1973. Norway was the Nordic country least willing to join the European Union . While Finland and Sweden suffered greatly from the 1990s recession, Norway began to earn enough revenue from their oil. As of 2007, the Norwegian state maintained large ownership positions in key industrial sectors, among them petroleum, natural gas, minerals, lumber, seafood and fresh water. The petroleum industry accounts for around
26469-441: The shareable parental leave (fathers use less than 30% of their paid parental-leave-days), foreign women are being subjected to under-representation, and Finland still holds a notable gender pay-gap; the average woman's salary is 83% of that of a man, not accounting for confounding factors such as career choice. The Nordic model has been successful at significantly reducing poverty. In 2011, poverty rates before taking into account
26642-434: The social democratic model, which is characterized by "a high level of decommodification and a low degree of stratification. Social policies are perceived as 'politics against the market.'" They summarized the social democratic model as being based on "the principle of universalism, granting access to benefits and services based on citizenship. Such a welfare state is said to provide a relatively high degree of autonomy, limiting
26815-411: The socialism associated with Karl Marx had become the official theoretical basis of the first social democratic party established in Europe, the Social Democratic Workers' Party of Germany . In the early 20th century, the German social democratic politician Eduard Bernstein rejected orthodox Marxist ideas about the inevitable progression of history and the need for revolution , advancing instead
26988-506: The socioeconomic order in Europe from the post-war period until the early 1990s. Social democratic roots are also observed in Latin America during the early 20th century; this was the case in Uruguay during the two presidential terms of José Batlle y Ordóñez . While the welfare state has been accepted across the political spectrum, particularly by conservatives ( Christian democrats ) and liberals ( social liberals ), one notable difference
27161-617: The specifics of gender equality policies in regards to the work place vary from country to country, there is a widespread focus in Nordic countries to highlight "continuous full-time employment" for both men and women as well as single parents as they fully recognize that some of the most salient gender gaps arise from parenthood. Aside from receiving incentives to take shareable parental leave, Nordic families benefit from subsidized early childhood education and care and activities for out-of-school hours for those children that have enrolled in full-time education. The Nordic countries have been at
27334-491: The subject focuses on "historical specificity", with the centralized structure of the Lutheran church being but one aspect of the cultural values and state structures that led to the development of the welfare state in Scandinavia. The Nordic countries share active labour market policies as part of a social corporatist economic model intended to reduce conflict between labour and the interests of capital. This corporatist system
27507-478: The term 'social democracy' only". Democratic socialism represents social democracy before the 1970s, when the post-war displacement of Keynesianism by monetarism and neoliberalism caused many social democratic parties to adopt the Third Way ideology, accepting capitalism as the status quo for the time being and redefining socialism in a way that maintains the capitalist structure intact. Like modern social democracy, democratic socialism tends to follow
27680-491: The term. It was a set of social programs implemented in Germany that Bismarck initiated in 1883 as remedial measures to appease the working class and reduce support for socialism and the Social Democrats following earlier attempts to achieve the same objective through Bismarck's Anti-Socialist Laws. This did not prevent the Social Democrats from becoming the biggest party in parliament by 1912. Similar policies were later adopted in most of Western Europe, including France and
27853-531: The terminology and symbolism such as the colour red . How far society should intervene and whether the government, mainly the existing government, is the right vehicle for change are issues of disagreement. As the Historical Dictionary of Socialism summarizes, "there were general criticisms about the social effects of the private ownership and control of capital", "a general view that the solution to these problems lay in some form of collective control (with
28026-440: The two terms are commonly used synonymously. The Third Way is an off-shoot of social democracy which aims to fuse economic liberalism with social democratic economic policies and center-left social policies. It is a reconceptualization of social democracy developed in the 1990s and embraced by some social democratic parties; some analysts have characterized the Third Way as part of the neoliberal movement. Social democracy
28199-442: The value of one's labor, that they might, perhaps, more properly be called communists". In the early 20th century, social democracy came to refer to support for a process of developing society through existing political structures and opposition to revolutionary means, which are often associated with Marxism. Thus whereas in the 19th century, social democracy could be described as "organized Marxism", it became "organized reformism" by
28372-480: The wage earner funds own predominant stakes in Swedish corporations on behalf of workers. This proposal was supported by Palme and the Social Democratic party leadership, but it did not garner enough support upon Palme's assassination and was defeated by the conservatives in the 1991 Swedish general election . Upon returning to power in 1982, the Social Democratic party inherited a slowing economy resulting from
28545-541: The war, such as Japan ( Japanese post-war economic miracle ), West Germany and Austria ( Wirtschaftswunder ), South Korea ( Miracle of the Han River ), France ( Trente Glorieuses ), Italy ( Italian economic miracle ), and Greece ( Greek economic miracle ). With the 1970s energy crisis , the abandonment of both the gold standard and the Bretton Woods system along with Keynesian social democratic, mixed-economy policies and
28718-472: The way for the modern Finnish welfare state. During that process, the church lost some of its most important social responsibilities (health care, education, and social work) as these tasks were assumed by the secular Finnish state. Pauli Kettunen presents the Nordic model as the outcome of a sort of mythical "Lutheran peasant enlightenment", portraying the Nordic model as the result of a sort of "secularized Lutheranism"; however, mainstream academic discourse on
28891-412: The weakness of Social Democrats and the Left in general. Thirdly, the legislative process did not show a strong tendency towards consensus-building between government and opposition with regard to government seeking consultation or support for key legislation. Fourthly, the political style in legislative procedures and public debate in general tended to be adversarial rather than consensual in nature." In
29064-599: Was a pivotal moment that furthered the division between reformists and revolutionary socialists. Those supporting the October Revolution renamed themselves as Communists while those opposing the Bolsheviks retained the Social Democrat label. While both groups technically shared the goal of a communist society that fully realized the principle of " from each according to his ability, to each according to his need ",
29237-497: Was a reformist state socialist , Bernstein predicted a long-term coexistence of democracy with a mixed economy during the reforming of capitalism into socialism and argued that socialists needed to accept this. This mixed economy would involve public , cooperative , and private enterprises , and it would be necessary for an extended period before private enterprises evolve of their own accord into cooperative enterprises. Bernstein supported state ownership only for certain parts of
29410-565: Was alienating potential middle-class Labour supporters, and nationalization policies had been so thoroughly attacked by neoliberal economists and politicians, including rhetorical comparisons by the right of state-owned industry in the West to that in the Soviet Union and the Eastern Bloc, and nationalizations and state socialism became unpopular. Thatcherite Conservatives were adept at condemning state-owned enterprises as economically inefficient. For
29583-472: Was confidence amongst socialists in the concept of state socialism as being the most effective form of socialism. Some early British social democrats in the 19th century and 20th century, such as the Fabians , said that British society was already mostly socialist and that the economy was significantly socialist through government-run enterprises created by conservative and liberal governments which could be run for
29756-510: Was defined as a policy regime advocating the reformation of capitalism to align it with the ethical ideals of social justice . What socialists such as anarchists , communists , social democrats, syndicalists , and some social democratic proponents of the Third Way share in common is history, specifically that they can all be traced back to the individuals, groups, and literature of the First International , and have retained some of
29929-457: Was weakened and no longer based on the social-democratic middle ground, as several social welfare policies were often permanently dismantled; however, Finland was hit even harder than Sweden. During the crisis, Finland looked to the European Union , which they were more committed and open to joining than Sweden and especially Norway, while Denmark had already joined the EU by the 1970s. Finland is, to date,
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