The Blairite Third way

The General election of 1997 was a turning point in the British political scene. In fact, the Labour routed the Conservatives and left them in ruin after 18 years of Tory rule. The Labour party , in power , with a massive majority , sat the main pillar for a new economic and political orientation known as the Third way under the patronage of the former Prime Minister Tony Blair.

Blair’s victory marked the Labour’s shift to the middle. The reason for having created New Labour is to meet the challenges of a different world. it was neither “ old left” nor “ Conservative right” , it is rather a new distinctive approach based on ideas and ideals not on an out-dated ideology.

Labour’s response after the fourth successive defeat in 1992 was to cease to be a socialist party. In fact Labour was widely perceived as being orientated towards a socialist perspective as the government took responsibility for unemployment, health care and housing. Subsequently, the Labour party decided to end its commitment to Socialism that had been hindering its electoral victory. Within this political wave of New Labour, principles of private enterprise and tightly controlled state spending had to be embraced and applied.

A prominent reason that accounted for Blair’s victory was the collapse of the Soviet Union in the aftermath of the Cold War with the Right losing its rallying external threat of Communism and the Left its primary example of socialist success. With the demise of the ideological conflict, the British had no alternative but to move to the centre.

More importantly, the arrogance of the Conservative Government helped it to ignore the opposition’s arguments. Tories, indeed, considered themselves as having the unique ability to identify and defend British interests.

Tony Blair, ultimately victorious, paved the way for new policies known as the Third way. It was economically shaped by Thatcherism.

 Post-war Labour fundamentally recognised the relationship between state and society in Britain and introduced a number of reforms in education, social security and welfare in an attempt to lay the foundations for a new, more caring society.  

In essence, the Third way was a re – evaluation of social democracy reaching deep into the values of the Left to develop new approaches. Its foremost values were Democracy, liberty, justice, mutual obligation.  He was in favour of an economy and society that combines the individual choice of the free market and the social opportunities of the welfare state. Tony Blair adhered to the idea of the enabling state, in other words, the passive welfare which encourages dependency was replaced by active welfare which encourages initiative, independence and enterprise. Evidently, the state’s role is to encourage employment rather than welfare dependency. Thus, the goal of welfare state is not to redistribute income but to ensure and increase more opportunities for all.

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. 

Additionally, the third way stands for a modernized social democracy since it is passionate in its commitment to social justice and the goals of the centre-left. Therefore, It is based on the principle that Government and industry must work together to achieve key objectives aimed at enhancing the dynamism of the market.

Interestingly enough, it is a “third way” because it moves decisively beyond an Old Left preoccupied by state control, high taxation and producer interests; and a New Right treating public investment.

the Third way did modernize the Labour Party  providing stable economic growth with low inflation, as well as  promoting dynamic and competitive business and industry at home and abroad.

Yet, it was argued, while pointing to Conservative reforms regarding education,  and welfare,  that ‘New Labour’ is simply a progression of Thatcherism with a sharp decrease in welfare payments and a shift from welfare capitalism to Neo – liberalism . In fact, he proved an allegiance to old Thatcherism against labour by advocating the expansion of multinational corporations which are enterprises operating in several countries but managed from one country.

To sum up, the General election of 1997 witnessed the return of the Labour moving to the centre and the emergence of a new social policy that of the Third way where welfare is guaranteed by the state. It was an extension of Thatcherism but with a new spirit of change and reform.