Financial crisis, social democracy and social policy

In the past, facing a financial crisis, traditional social democratic policy would have focused upon financial and macroeconomic management that in turn dealt with the national and international banking system. Such a policy can provide the most effective stimulus to the economy at both international and national levels. That is, the delivery of social and economic good that comes out of the global financial crisis may promote radical transformations in political decisions to bring about the most pragmatic transformation of social life.

In addition, Christopher Rude, in his article "The Global Financial Crisis What Needs To Be Done?" (PDF 317KB), points out:

Two positions are discernable. On the one hand, there are those who believe that the financial market’s informational difficulties can be solved by better market transparency, who are more concerned about stability than equality, and who believe that the necessary changes are minimal. On the other hand, those who mistrust lightly regulated or unregulated markets, and for whom the existing arrangements have led to serious and negative economic and social consequences, see the need for major structural change.

The former position is one that can be typified by the theory and analyses of the Third Way Such a political device was developed to deal with the complexities of globalisation, and justified its approach by aligning itself to the neoliberal ideal of increased individual freedom, maximising choices and enhanced equality of opportunity. It thus favoured light regulation, limited by its focus on macroeconomic stability, while leaving markets to play the larger role in the over global economy.

The other position is more pragmatic in its methods of implementing social democratic policies. It believes that regulation should interfere with the harsh systematic market agenda, promoting the development of emerging markets and developing nations, assisting in the creation of new ways of directing systematic market outcomes to ensure a more equal distribution of social goods.

Any answer to the global financial crisis must take into account the social costs, because human suffering through market failure is disproportionally affecting the developing countries, as well as the poor in richer countries where the labour markets are put under increasing pressure. The stability of a workable banking and financial system within the global economy produces a means to an end, not an end in itself. Ultimately, it is ends that matter, ends which are social.

Globalisation and disabled or differently abled people

President Barack Obama accepted the 2009 Nobel Peace Prize for his progressive approaches to social policies. This commitment is also shown in his vision for including disabled and differently-abled people in social life. He set this out in one of his campaign speeches:

We must build a world free of unnecessary barriers, stereotypes, and discrimination ... policies must be developed, attitudes must be shaped, and buildings and organizations must be designed to ensure that everyone has the chance to get the education they need and live independently as full citizens in their communities.

In this speech, Obama highlighted some of his deep-down assumptions about a just society: it also must involve the inclusion of disabled/differently abled people. Are Obama’s progressive political theories demonstrating concern for disabled/differently abled people? Have his resultant policies given expression to his vision of equality and the end of discrimination? He has shown his intention to create pathways to realise objectives, by ensuring an increase in funding for the enforcement of the American’s with Disabilities Act.

High on Obama’s agenda is the lifting of the employment rate among disabled/differently abled people. To achieve this he plans to firstly require compliance in the American public sector with a wave of Affirmative Action (positive discrimination) type legislation, from which disabled/differently abled people will be the beneficiaries. The next phase of this agenda will be to implement similar reforms in the private sector. Obama argues that policy should encourage those employers to use existing tax benefits to hire more workers with disabilities and support small businesses owned by disabled/differently abled people.

However, we need to keep in mind that the concept of individual merit had been introduced as far back as Michael Young's The Rise of Meritocracy (1956). In a more recent article, the author has suggested that:

[a] line of argument that is also made much of in the book is that a meritocracy can only exist in a full form if there is such a narrowing down of values that people can be put into rank order of their worth.