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Ideology, Welfare and Social Cohesion

Ideology, Welfare and Social Cohesion. Presentation by Peter Gustavsson, Uppsala Party Dictrict of the Swedish Social Democratic Labour Party (SAP). Democratic Party Youth, Serbia, December 9-10 2005. To Compare Social Models.

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Ideology, Welfare and Social Cohesion

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  1. Ideology, Welfare and Social Cohesion Presentation by Peter Gustavsson, Uppsala Party Dictrict of the Swedish Social Democratic Labour Party (SAP). Democratic Party Youth, Serbia, December 9-10 2005

  2. To Compare Social Models • A social model is a result of certain values applied to a certain context. What works in one place won’t necessarily work in another place. • The Swedish Model is Social Democratic values of liberty, equality and solidarity applied to Swedish preconditions. It’s in constant change.

  3. Sweden 100 Years Ago • 5,1 million citizens (today 9 million) • Infant mortality rate 100/1000 (7/1000) • Average age: men 53, women 58 (74/80) • Average working hours a week: 75 (38) • Average income/hour: 0,45 SEK (115) • Price of pork/kg: 1 SEK (75)

  4. Sweden 100 Years Ago • Number of doctors: 1 131 (today 20 000) • Number of hospital beds: 16 000 (120 000) • The employers also owned the houses people lived in, and the stores you shopped in • Blacklisting, starvation and lousy living conditions

  5. When We Started • Sweden was one of the poorest countries in Europe • Starvation and poverty • Bad living conditions • Blacklisting and harrassment by police/military • Strong patronage system • Factory owners and land owners who also had the political power ( no democracy)

  6. The Background and Founding • 1889 the Social Democratic Labour Party was founded by trade unions – mostly labour issues in the beginning • To be able to concentrate on the political work, the party formed and founded LO, the trade union congress, 1898 • Ever since then, there has been a very close cooperation between LO and the party

  7. The Background and Founding • 1932 election was a big land slide for the Social Democrats • Social Democrats has been governing 1932-76, 82-91 and 94- (next election is 2006) • Reform policy and governing has been made possible because of cooperation with and support and criticism from the trade unions • Ever since then, the main issue for the party has been to win elections, and implement our political agenda.

  8. How Long Time Did It Take? • Organising/struggle for democracy, 29 years (1889-1918) • Fighting to win power, 14 years (1918-1932) • Reformation of society/creating a welfare state, 30 years (1945-1975) • Financial crises during the 30’s and second world war delayed the development

  9. The Swedish ”Model” Make sure that everyone has a job and can support themselves Redistribution and Solidarity Everyone pay taxes Education Economic growth Security

  10. The Strong Society I: Universal Welfare • Universal welfare: the benefits are for all, not only for the poor. • ”The paradox of redistribution”: As everyone gets something out of the system, high taxes can be maintained and public support for the system is high

  11. The Strong Society II: Public Sector and Social Insurances • Public sector: Schools, hospitals, elder care, kindergartens, roads etc. • Free of charge or strongly subsidized. • High quality - Only the best is good enough for the people. • Social insurances: Pensions, unemployment benefits, health insurance, parental leave etc. • Income security: level of benefits related to previous income.

  12. The Strong Society III: Collective bargain treaties • Trade unions negotiate on wages with employers’ organizations. Collective agreements to achive high wages and to avoid companies using low wages as a means of competitition. • Solidaric wages policy – more to those with lower wages. Wages increase with the rise of productivity. • Politics for full employment, active labour market policies, high unemployment benefits and strong labour laws to protect collective bargaining. • Low-wage competition from abroad threatens collective bargaining. The labour movement want everyone who work in Sweden to get wages according to colletive bargain treaties.

  13. Basic Principles for the Tax-paying System (1) • From each and everyone out of capability, to each and everyone out of their needs • Redistribution between generations, groups and over the lifetime (you get the first and last 20 years, you pay the 40 years in between) • Income from work and capital shall be equally taxed

  14. Basic Principles for the Tax-paying System (2) • You contribute and you benefit • During different periods of life the needs are different, as well as the capability • We have a common responsibility

  15. How Much Do You Pay? • Everyone with an income pay tax to the municipality (30% of your income to municipality, province, church) • If you have a high income, you also pay tax to the state (20% of the higher income) • VAT 25%, taxes on petrol, real estate, vehicles, liquor and tobacco etc • Payroll tax on 32% (Paid by the employers)

  16. The Strong Society and Women • The discontent of rising expectations • Gender equality at first a result of reforms for the working class. • Elder care, hospitals, kindergartens made it possible for women to take part in the labour force • Trade union demands for equal pay resulted in higher salaries in ”female jobs” • Today – the Social Democratic Labour Party is a feminist party

  17. The 1980’s and 90’s • Stronger international competition, globalisation, neo liberal ideological turn internationally (Reagan, Thatcher...) • Social Democrats on the defence – ”save what can be saved”. Partial adaption - the ”Third Way” • Cuts in the welfare state, privatisations etc • High unemployment, especially for young people and immigrants

  18. The Pendulum Goes Back • Sweden as ”the bumblebee” • Even the Conservatives embrace the Swedish Model • Higher self-conscience among Social Democrats, we were right and they were wrong • The 1990’s are over – first budget without any cutbacks • ”The most successful society the world has ever known” (Polly Toynbee, The Guardian, October 25th 2005)

  19. Workshop on Ideology, Welfare and Social Cohesion • What do you think about the Swedish Model? • What parts of the Swedish Model could be good if it was introduced in your country? • What should Sweden change and learn from your country? • The Swedish Model is developed according to Swedish political, economic and social conditions. What obstacles do you see to an introduction of Social Democratic policies in your country? • What would a Social Democratic Model in your country look like? How could it be achieved?

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