UK Politics
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What is the Third Way?
Tony Blair: Seeking the centre ground
Tony Blair has committed
his government to treading the Third Way. Both US President Bill Clinton and
German Chancellor Gerhard Schröder espouse the same doctrine. But what does it
really mean? BBC Social Affairs Editor Niall Dickson digs behind the
rhetoric.
On the face of it I believe we should be
suspicious of political ideologies borne of practising democrats - dictators can
afford to have coherent if brutal creeds - public opinion is of limited interest
to them as it was of no value to the likes of Hegel or Marx or Plato or Mill,
none of whom actually ran anything or had to respond to the latest poll or focus
group. Their belief systems could afford to be uncontaminated by the need for
pragmatism.
And yet in this age
when the great ideological divide which characterised the post war era has
evaporated we seem to feel the need to understand our politics as a single story
rather than as a set of disjointed initiatives. A government, it seems, must
have at least a Big Idea underpinning its policies - simply wanting to make the
world a better place will not do.
Of course the Third Way to this extent is not new - not only have there been
the familiar tenets of neo liberalism Christian and social democracy and
democratic socialism, all of which can claim to have acted as tillers to various
administrations but there has also been Butskellism - the cross between the
thoughts of Conservative Rab Butler and Labour's Hugh Gaitskell and more
recently Thatcherism, which some have argued represented the first clear
ideological underpinning the Conservative Party has ever had.
![[ image: Clinton, Blair and Schröder are all Third Way disciples]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_sXmfQMazEBHWXuL7rZxxJBA05CvYO-_wepCdbdQoU0OUv-mkURSfnn6AApzJCCFc3kmLp9TF1BoEZat31CbOPdxJLBDSpk9nR-jpXpAyQEMS0kHJclns4siXs_BPRU4NxaprrlBw=s0-d) |
| Clinton, Blair and Schröder
are all Third Way disciples |
So what is this
Third Way embraced by Blair and Clinton and now by a number of European leaders,
most notably Gerhart Schröder in Germany? One observer described it as the Loch
Ness Monster of British politics - everyone's heard of it , there are occasional
sightings but no-one is sure the beast really exists. Or as another remarked the
third way is ethereally defined. One supporter writing to The Independent
claimed it was a form of benevolent pragmatism - a philosophy that asked of each
policy - is it good, does it work? For this reason he argued it was hated by the
old left and the new right - the new right because they never did anything that
was good and the old left because they never did anything that worked .
Put at its most basic the Third Way is something 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, entrepeneurship, 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 one of
its gurus Anthony Giddens of the LSE the Third Way rejects top down socialism as
it rejects traditional neo liberalism.
I would not want to disagree with that but there is certainly a tendency
among some supporters of the Third Way to define it by parodying what has come
before it - to suggest that Thatcherism was only concerned with the market or
even that it prescribed free market solutions for all ills is surely an
oversimplification - likewise to depict old Labour as if it were some form of
Stalinist mantra which favoured snuffing out all forms of private enterprise is
equally silly.
To reduce alternative approaches to such banalities may throw the
Third Way into sharp and flattering relief but it doesn't really illuminate it
very much. Indeed if the Third Way were just a compromise between hard economics
and social justice it would not merit much discussion.
The other and related criticism of course is that the Third way is no more
than a crude attempt (rather a successful one thus far) to construct a bogus
coalition between the haves and the have nots - bogus because it entices that
haves by assuring them that the economy will be sound and their interests are
not threatened, while promising the have nots a world free from poverty and
injustice. I don't accept this is entirely fair and I hope I can show it does
amount to more than mere opportunism even if that its electoral success both
here and in the United states has been dependent on winning over middle class
voters to parties that have often been regarded with suspicion by the better
off. Seventy-eight of Labour's gains were in suburbia.
So if the Third Way is not any of those things or not those things alone,
then what is it? Giddens in his analysis begins by pointing to a changing world
and suggests that the Third Way is a response to that change - not merely
electoral opportunism then but a rational response to a new political social and
economic environment.
At the heart of these developments lie globalisation - such is the nature of
world trade and the rapid movement of capital that modern governments are no
longer in control of their national destinies - electronic money flies around
the world and is 60 times the value of goods.
The capacity of government to influence events is thus diminished - Robert
Reich Clinton's one time Labour secretary argued that after ensuring that there
were the right conditions for maximising trade and encouraging investment, governments were left with two crucial variables they could affect - first the
skills of their population - making their workforce more competitive through
higher levels of education and training and second, building an efficient
infrastructure of transport links, utilities and I suppose in the British
context hospitals and schools, the social infrastructure.
![[ image: The blur of global trade patterns lies behind the Third Way]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_shEKv9-UOhrWYoKjh3Pey3P7OAwe9pWzG9oM7PmkRb9vwt_fSYHvspRpxtrS6VrGbxbfuBnPn4GhRBZPtWSU2pHH4uDDJKYyeuo77zBwvj02roYHQJiD4AJXDYUDn-igKLGzwC=s0-d) |
| The blur of global trade
patterns lies behind the Third Way |
Giddens goes
further suggesting that the Third Way sees the nation state as too big for small
problems and too small for big ones - hence the enthusiasm for devolution in the
UK and the passing of some functions to Europe. And recently with the war in the
Balkans there has been the beginning of a debate about the end of the sanctity
of the nation state and the emergence of a new moral order which does not accept
the old notion that what one does within one's own borders is one's own
business. While this takes me beyond my social brief it does illustrate how one
can apply these notions to other areas of policy. More pertinent is another
massive change without which the Third Way would not have been conceived and
certainly would not have had success at the polls.
A generation ago half this
country was working class - 20% was middle class - today they are the other way
round. Mrs Thatcher's property owning democracy is here. The left may lament the
fact that Labour's core support is not turning out to vote - the truth is
Labour's core support, in that traditional sense, barely exists at all.
It has evaporated along with so many of the certainties that characterised
this turbulent century - traditional loyalties and communities have disappeared,
along with the moral direction and authority once provided by church and trade
unions, the simple division of roles between genders and the deference that
characterised the British class system.
In its place a more uncertain world, where what is immoral today may be moral
tomorrow and vice versa. A world in which family life and individual
expectations have been transformed, where new fears and uncertainties have taken
root - where so often nothing is for ever - no job for life or home for life or
marriage for life.
So it is this that the Third Way seeks to make sense of and, in Giddens'
words, apply left of centre values to the new world. To recognise the need for a
moral framework and to adjust public institutions to a very different and
demanding environment.
So What are the Values?
According to Julian Le Grand also of the LSE it is possible to discern four
key values which underpin the actions of this administration and which de facto
make up the Third Way.
First a belief in the
value of community. Unlike Mrs Thatcher, who famously claimed there was no such
thing as society only individuals, proponents of the Third Way still believe
there is or there should be more than the nuclear family at one end and the
nation state at the other. Hence enthusiasm for devolved powers to Scotland and
Wales, for a Greater London Authority and for mayors who will personify
communities of various shapes and sizes.
Community is evident too in much of the work of the social exclusion unit -
the drive against social exclusion in part at least will come from invigorated
and empowered communities. And as we shall see many social policies are based on
the premise that institutions and individuals can be encouraged to so-operate
with one another in constructive partnerships rather than competing with one
another.
One of the difficulties here is that community is ill defined - the very
changes the government seeks to confront have eroded traditional communities and
new sets of relationships often not based on geographical areas have emerged.
Secondly there is a commitment to equality of opportunity - by no means a new
rallying cry since both past Conservative and Labour administrations have
claimed to have this at the centre of their policies - but there is something
distinct here. Right wing governments have generally thought it sufficient to
create a level playing field - for example by providing universal services such
as health visiting or compulsory schooling but at the same time accepting as
inevitable very different outcomes in terms of income, health or educational
attainment.
The left on the other hand has concluded that these different
outcomes were simply the result of exploitation, or lack of funding or poverty -
in short nothing or very little to do with the people in the affected
communities who were viewed as passive victims. The left also had a degree of
commitment not just to equality of opportunity but to equality itself. Or at
least a commitment to reducing levels of inequality.
The Third Way differs from these analyses or rather it borrows from them all.
First there is a stronger recognition that equality of opportunity is denied to
many and that this requires positive discrimination in the form of additional
funding or even transfers of funds from one part of society to
another.
Second there is a refusal to accept deprivation as an excuse for
failing to provide that opportunity - so whether it is the absence of a GPs
surgery on a council estate or rampant crime or poor housing or failing schools
the assumption is that the cycle of deprivation can be broken.
Here though the subjects are not seen as victims of an exploitative system or
at least that excuse for not fulfilling their responsibilities is to be removed
- so their schools will be improved, but woe betide those parents who fail to
make sure their children turn up on time, their neighbourhoods will be cleaned
up but those who disrupt will be kicked out, those who want to give up smoking
will be helped to do so, but it will be made abundantly clear that each
individual is at least in part responsible for their own health.
There in a tension here within the Third Way between enforcing the concept of
responsibility which can mean excluding those who do not conform and one of the
other central tenets which demands that as many as possible are included. It is
a problem already evident in some of the reports on the New Deal for the young
unemployed where it seems some of the most needy have done least well.
The main thrust though is pretty much agreed and is central to the Blair
project. What is less clear is how far the Third Way seeks greater equality per
se. Le Grand sees evidence of ambitions of equality of opportunity but not much
evidence of wanting to close the income gap - Anthony Giddens on the other hand
talks of the Third Way contesting inequality and I think it is a mistake to
underestimate this aspect. There is a strong element of redistribution in this
government's fiscal policy.
Apart from a quiet but determined assault of remaining middle class tax
benefits, the creation of the minimum wage, increases in child benefit and
minimum guaranteed income for pensioners there is the working families tax
credit - more significant I suspect than the rest put together and with the
potential, whatever its downsides, of raising the incomes of very large numbers
of low income and low to middle income families.
What differentiates this from previous attempts at creating a more equal
society is that it is based on work as the principal root out of poverty - work
will be made worthwhile because work is seen as the source of dignity and worth
- work for the young, for the long term unemployed, for lone parents, for the
disabled. And while the state has a responsibility to help train and provide
skills to enable people to acquire jobs, they have a duty take them. Which leads
me to Le Grand's third value - responsibility.
It is striking how dominant this theme appears in just about ever government
initiative - the Third Way has a strong moral vein. And it goes much further
than saying to 19 year olds that staying in bed is not an option - the criminal
work is predictable, but even here there is more evidence than ever -
reparations for victims, parenting orders, and curfew orders on the under 10s.
But it is wider than that - asking parents to ensure time is put into homework,
cracking down on teenage fathers, ensuring teenage mothers are prepared for
their responsibilities, and requiring jobseekers to attend interviews under the
single gateway to welfare, all these underline and are intended to underline
individual's responsibility to the state and the wider community.
The traditional left's view of the exploited masses has been abandoned - in
fact in so far as the social excluded - the third way term of have nots - are
exploited it is by the very systems that were designed to help them - by a
welfare system that fostered dependence, an education system that bred failure
and a child support agency that miscalculated and a health system that did
little to tackle the underlying causes of their high rates of morbidity.
Hence value four - accountability. For just as individuals are responsible to
society, organisations especially public bodies will be held to account like
never before. Part of this involves the creation of new democratic mechanisms
here and in Scotland, Wales and London and through attempts to revitalise local
government.
And part amounts to little more than extending the last government's work on
performance indicators - finding measures that reveal whether a public body is
doing its job efficiently and effectively. What is new is the focus on outcome
measures - so it will no longer be just the speed with which patients are seen
in hospital, or the number of moves a child makes in foster care - it will be
how many patients died under the surgeon's knife, how many GCSEs the child in
care passes.
Alongside this is the apparent commitment to embrace those who use these
services - to make consultation more than the period of time between announcing
a policy and implementing it. Often pretty ill defined, this approach is evident
in the white papers on mental health social services and to some extent in the
primary care reforms planned for England. I want to return to this shortly in
discussing the delivery of the third Way - suffice it to say here that there is
growing suspicion among many that government action has thus far not matched
government rhetoric - as one leader in the voluntary sector put it 'we fear we
are being asked for what we can deliver not what we can shape'.
The Third Way relies on the public sector but its view of it complex - it
shares many of its values - commitments to access and equity and service. Yet
like the Conservatives there is an assumption that on the whole these
institutions are currently not well run and are failing to deliver.
No Ideological Commitment to Public Services
The result is two key devices for changing that - first new measures of
performance, new regulations and new controls across the public sector - from
the Youth Justice Board who will crack down when delays in the criminal justice
system are not addressed or offending behaviour not tackled early enough, to the
reinforced social services inspectorate, from the regional commissions for care
standards to the Commission for Health Improvement. A whole new array
institutions to drive up standards.
Secondly there is no ideological commitment to public sector provision -
there is a willingness to contemplate private and not for profit alternatives,
something manifestly different from more traditional Labour policy which at
times was indifferent to the voluntary sector and often hostile to private
involvement in welfare. Now though private prisons are encouraged, private
companies are invited to come in when education authorities have failed, the
private sector is seen as the saviour of the NHS capital build programme - PFI
survives and of course Best Value implies shopping around.
Indeed it is the social services white paper that is the most explicit on
this, stating quite clearly that 'who provides' is not important. The one
exception to this indifference so far is with the health service where a
combination of Labour Party history, public regard and powerful professions have
ensured that mainstream clinical services at least will stay public in every way
- the quiet privatisation of sections of mental health care, nursing home care
and non clinical services will stay quiet.
So there we have it - the Third Way. At its heart is
social policy - shaping a new set of relationships within society and drawing
together the successful businessman and entrepreneur with the lone parent -
above all delivering not just a fairer society at ease with itself but a more
effective one which uses the talents of all.
So will it work?
The Third Way is nothing if not ambitious - it believes in the power and
effectiveness of government and the capacity of the public sector to deliver
social goals - it believes the public sector with the right alliances can not
only deliver better services, it can transform society reducing social exclusion,
academic failure, family breakdown.
And among those at and around the top of this administration there is no
doubt about the coherence or the righteousness of this strategy - they know
perfectly well that they are not closet Conservatives but they are much less
confident about their capacity, your capacity to deliver what they demand. The
mantra education education education has been replaced with delivery delivery
delivery. A nightmare for them is their election theme song 'Things Can Only Get
Better' being played over pictures of hospitals filled with trolley waits and
protests over closing old people's homes, and surveys which show concerns over
education as high as in 1997.
My own view is that they are right to be worried about delivery.
The most important foundation IS in place - social reform can only ever
succeed on the back of a successful economy and the crystal apparition that is
the third Way will melt into a messy blob without a thriving economy - it needs
the tax revenue to fund revitalised services, it needs jobs for those going
through its New Deal programmes. And jobs, for the exponents of the Third Way,
are the way out of poverty.
Were the economy to hit the buffers the entire social policy programme would
fall apart. But as there is no evidence that it will, let us assume that that
modest growth can be achieved with relatively low unemployment.
The first observation has to be that the new funding not just in social
services but in health, education and criminal justice does not match the hype -
and those who greeted the CSR settlements with phrases like 'beyond our wildest
dreams' are already eating their words. The realities in your own areas you know
better than me - in education there is more but it is the one area where demand
is not shooting way ahead of supply and where the link between the quality of
service and the quantity of money is rather uncertain - meeting literacy and
numeracy targets will not be achieved by throwing money at schools.
Parts of the health service meanwhile are in debt - the warnings are already
coming out that in places the government will have to choose between the great
modernisation projects and keeping the service running.
The police mutter they
cannot recruit more black officers because they are not recruiting at all.
So on its own the extra money will make a difference - class sizes will fall,
waiting lists too but there is not enough money and certainly not enough skilled
people to bring about a metamorphosis.
The second area is the sheer complexity of what is being attempted- Andrew
Foster the controller of the Audit Commission produces an remarkable flow
diagram which illustrates how fiendishly complicated even the most basic of
Whitehall functions can be when translated on to the ground - the funding of
social housing streams out of a few Whitehall departments into a multitude of
quangos and local agencies and ends up as a bowl of spaghetti.
I do not suggest that partnership and joint working will fail but there are
signs already that in places rhetoric may be moving ahead of reality and that
with massive organisational change underway in health, local government and
youth justice the danger is that operational demands suffer at the expense of
structural reform. Co-operation is fine, but it can be time wasting as well as
time consuming - how many hours will be devoted to local drug action plans,
youth offender plans, health improvement plans, education action zone plans,
corporate social care plans, local mental health plans.
Allied to this are the grumbles already apparent that too much is being
expected too soon. The NHS and social services in England have been deluged with
circulars - at the NHS confederation conference this year minister after
minister acknowledged the size of the agenda and promised fewer initiatives -
the NHS chief executive went further saying he did not expect managers to act on
everything in every circular.
Those who support the Third Way believe in the capacity of government and of
planning. Yet however ingenious their methods ultimately they can only make a
difference in two ways - they can create conditions in which staff either do
things better or do better things. Given the current patchwork of provision
delivered by an array of different professions in agencies with widely different
cultures there must a chance that good words will run ahead of good deeds.
What is more the tension between the need for central control and the desire
to foster local autonomy has not be resolved. Already some are warning that
local creativity is being snuffed out by centrally prescribed initiatives.
Ministers of course make no apology for setting standards and setting directions
for organisations that rely wholly or in part on government funds but with ever
more outcome related measures the degree of Whitehall control in England appears
greater than ever.
And it will seem even greater when the new regulatory and inspection bodies
are up and running. Nor is it just a concern for mangers. For a whole variety of
reasons the professions are in turmoil - public sector morale, never good, has
fallen back after the euphoria many felt at Labour's election victory. Yet above
all others it is these groups, the doctors, nurses, social workers, OTs and
police officers who are expected to deliver the Third Way. Holding them to
account may be overdue but it is bound to be painful and not just for those
deemed to be underperforming.
And the implicit assumption that it will be possible to deliver reform while
continuing to embrace all stakeholders is also coming under strain. Disability
groups at national level have already marched out of their forum with the
government in protest against aspects of welfare reform, some mental health user
groups have quit their consultative committee because they object to the
government's emphasis on public safety and compulsory treatment in the
community. Some police authorities have indicated that they will not co-operate
by diverting funds into drug rehabilitation from their already overstretched
budgets.
And there perhaps lies one of the main underlying weaknesses of the Third Way
- it conjures up the prospect of cost free reform, where everyone is a winner-
John Galbraith was no doubt overstating it when he claimed politics was the art
of choosing between the disastrous and the unpalatable, but it certainly does
often involve trading the interests of one group against another - to that
extent John Major was right when he said there could be no gain without pain.
More than this though, like so many ideologies the Third Way runs the risk of
overstating the capacity of government to deliver, to change the way people are,
the ways they choose to live their lives. Many of today's social problems have
deep roots; the physical illnesses of tomorrow are already predetermined by
lifestyles of yesterday, some of the pressures that lead to mental problems are
beyond government influence others may be exacerbated by the understandable
drive for success.
This is not a counsel of despair but it may be good reason for greater
humility and a call for both politicians and public to have lower expectations
of what the Third Way can reasonably achieve within a reasonable time.
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