How Ed Miliband can redefine the Labour Party and Socialism

http://www.demo-critic.com/archives/285

Ed Miliband has on many occasions said “I am a Socialist” and has recently been caricatured as “Red Ed”, especially in light of the overwhelming support he received from the Trade Unions which helped to clinch the leadership for him. However, surely socialism was a failure consigned to the rubbish bin of history when the Berlin Wall came down? Is it not “progressive” politics beyond the anachronistic terms “left” and “right” which is the new fighting force for social democracy? Blairites and other advocates of the “Third Way” would say so but with the election of Ed Miliband this may be an opportunity for something special to happen.

Socialism’s origins lay with Karl Marx’s belief that capitalism was an unjust system that reduced the proletariat to the same level of serfs and that a utopian society had to be created. He believed the state would be instrumental in this transformation, but once it had been accomplished then the tentacles of the state would shrivel away in the face of the liberation of the working classes. Many things have changed since then. The Bolshevik Revolution inspired by Marx was an abject failure which caused Russia to descend into an authoritarian nightmare that duly collapsed in 1989. Moderate socialism, or “Democratic Socialism”, in Britain led to the stagflation of the 1970s and militant trade unionism which thus enabled the “Thatcher Revolution”. The model of socialism based on statism failed. The Labour Party lost its raison d’etre and as a result became New Labour. Does this mean socialism is dead and buried? No. Is the old model of socialism dead? Yes. Mr Miliband will need to move the Labour Party beyond the old State versus Market debate because it is a debate which is no longer suitable for the times we live in. Strangely enough it is David Cameron who has gotten closest to where Mr Miliband should be looking: Society. There is little enthusiasm in the Conservative Party for the “Big Society” reforms. They prefer the “marketisation” and “privatisation” of the public sector. In addition to this fact the reforms themselves are limited and with the necessary funding required denied to them, due to the Coalition’s deficit reduction plan, they are doomed to failure. Mr Miliband must attack the Coalition for not pursuing them radically enough and to denounce the “privatisation/marketisation” policies such as academies, GP fund holding, and a centralised Work Programme.

The Labour front bench must frame the terms of debate. They must say that the Coalition just stands for the policies of the past. Privatisation and marketisation are policies conceived under Thatcher, implemented under Major, and then entrenched by Blair. Ed Miliband must then say that Labour stands in opposition to this. Labour’s intellectual foundations should be revitalised by reconnecting with think tanks, academics, pressure groups, NGOs, and Trade Unions. However, Ed Miliband must first ensure his independence as Party Leader and not a Union stooge. This will involve being very firm when public sector workers start to go on strike. He mustn’t appear like a reactionary extremist but should recognise that nation’s finances are unsustainable at present. He must point where unnecessary cuts have been made, where other potential cuts should be made, what taxes should be raised, and most crucially the pace at which these measures are taken.

Alongside the response to the Coalition’s deficit reduction plan the Labour Party must lay out its own radical vision for the future. Not a rehash of Old and New Labour truisms, but something bold and unique. There must be a new socialist doctrine for the modern Labour Party based on “mutualism” and “localism”. The state is not sufficient and increasing its power undermines the liberty of the individual. Equally, the market benefits the advantaged whilst denying liberty to the disadvantaged. The voluntary sector and the transference of power to local government can have a revolutionary effect on the nation as Society ensures liberty and equality. This can be realised by transforming public services into employee co-operatives, tendering services to the voluntary sector, and creating a new framework of funding for the voluntary sector to act within. In turn these public services will be handed over to the hands of local government. County Councils should have their own tax raising powers, schools, hospitals, police, community care, and welfare. This would devolve power directly t the individual by giving them a stake in their public services and make them democratically accountable to those whom are affected the most.

So where does this leave central government? It is the task of the central state to redistribute raised revenue. A perfect example is the Pupil Premium which ensures spending is directed to deprived areas which require extra funding the most. Spending must be distributed according to need. Taxation must be progressive. This should entail a focus on direct taxation rather than stealth taxes. An obvious place to start would be to abolish the basic and top rates of income tax and replacing it with an incremental income tax. This should be accompanied by a simplification of the tax system as a whole. Labour must not be afraid to show how progressive taxation is necessary in order to benefit Society as a whole. There must be reasonable regulation of capitalism. Fair employment laws are crucial and essential for a new socialist doctrine but it cannot become a hindrance to people’s aspirations or be inadequate. Furthermore, we need a return to true Keynesian economics. The centrally planned economy was a failure. A state managed capitalism is necessary as Keynes demonstrated in his “General Theory”. A cyclically balanced budget, price stability maintained by cheap credit, and full employment ensured by public investment. This new political economy based on fair but responsible spending, progressive but simple taxation, fair but efficient regulations, and true Keynesian policies will show that Labour has learnt the mistakes of the past and has mapped out their own road to recovery.

Finally, Ed Miliband’s new team must pledge themselves to a complete overhaul of British democracy which makes the Coalition’s constitutional reforms seem timid and unsubstantial. This should include promoting citizen initiatives, use of national and local referenda, moving Britain towards being a federal state, the separation of powers, increasing the power of backbench MPs, greater transparency in government, and, perhaps most radically of all, support an electoral system of proportional representation. These policies, the last in particular, have the benefit of securing the support of the Liberal Democrat core but also of making real that elusive idea of the “Progressive Alliance”. There has never been a Liberal – Labour Coalition. Only confidence and supply agreements used cynically by both parties. However, when people speak of the “Progressive Alliance” today they actually mean reuniting the Social Democrats with the Labour Party. The Liberals in the Liberal Democrat Party are the ones most keen on the Coalition with the Tories and are not susceptible to the charm of the “Progressive Alliance”. Ed Miliband could use a referendum on proportional representation as the essential tool to reunify the progressive left. The Liberals would inevitably be forced to either maintain some independence or be absorbed into either the Tory left wing or the Labour right wing.

It is clear that if the Labour Party wants to move forwards and into government then a new socialist doctrine is required. No “Third Way”. No return to statism. The emphasis must be on giving power directly to the people. Socialism must be founded on Society. This new way forward must be founded on the principles of mutualism and localism, a new political economy not dictated by free markets or state control, and a truly democratic and pluralist system of government. Ed Miliband must follow this path towards a New Socialism in order to reunify the progressive forces of this nation and to win back power. This new intellectual narrative, policy changes, and changes in attitudes will not be made by large rebranding, spin, or catchy slogans. They will be made by a silent revolution within the Labour Party which will be rejuvenated and present a radical and viable alternative to the Coalition Government. It is perhaps apt to end with something Ralph Miliband said: “All concepts of politics, of whatever kind, are about conflict──how to contain it, or abolish it”. Let us hope that Ed Miliband will help to map out a route to alleviate the pressures of conflict in a nation in war, economic crises, and social breakdown.

By David Cowan