Social Policy after the GFC
or
Nation building the Australian way
Paul Smyth
University of Melbourne
And
Brotherhood of St Laurence
Social policy and the gfc
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From neoliberalism to social democracy
Social investment state
Social inclusion agenda
Reintegrating social and economic policy
Social inclusion in Australia
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Slow take up
Rural and place based disadvantage
The poverty wars
Sen, capability and positive welfare
Social investment in human capital
Minimise risk maximise opportunity
UK’s EHRC (2007
• ‘An equal society protects and promotes equal
real freedom and substantive opportunity to
live in the ways people value and would
choose, so that everyone can flourish. An
equal society recognizes people’s different
needs, situations and goals and removes the
barriers that limit what people can do and be’
1st 2 years of Rudd Government
• Social Inclusion Board
• Jobless families\ children at risk \ place based
disadvantage \ homelessness \ employment
for people with disability\ indigenous
disadvantage
• Joint Social Inclusion Action Plan
• Jobless families\ disengaged youth\ children
at risk\ place based disadvantage
Longer term uncertainty
• Principles: ‘Less disadvantage’\ ‘more
participation’
• Give people voice\ responsibility\ strength
based approach\ partnerships\ tailor services
to individual need\ joined up services\ early
intervention\ place based \ sustainable
• Most people confused and wonder what
social inclusion actually means
From neoliberal to social
democratic
from Hilary Silver)
liberal
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Conception of integration
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Source of integration
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Ideology
liberalism
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Discourse
underclass
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Thinkers
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Social policies
specialisation
exchange
Locke \Smith
Residual (charity)
social democratic
monopoly
citizenship
social\democratic
inequality
Marx\Marshall
Universal (welfare state)
Inclusive society in UK
• Conservatives focus on ‘underclass’
solution : welfare safety net + families,
communities and social entrepreneurs
• Labour focus on the ‘whole of society’
Solution: public services as pillars of inclusive
society; map resources citizens need across
life course. A ‘New Social Contract’
Australia’s welfare mess
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a ‘wage earners’ welfare state’ (1900s-)
full employment basis of welfare (1940s-)
Half a welfare state (1970s -)
Neoliberal utopia: ‘Ending welfare’ (1990s)
More spending than ever but no policy
architecture (2000s-)
A Compact for a Fair Go
• From welfare state to social investment state
(risks and opportunities over life course: early
years\school to work\‘working years’\
retirement- ageing’)
• Remake Harvester Judgement: ‘transitional
labour markets’ framework
• Use wage system? And /or welfare system?
Compact for a competitive
economy
• The developmental state 1900- 1970s:
Federation ‘social contract’ supported workers
through living wage and public goods\ and
employers through industry assistance for
high wage path
• 1980\90s neoliberal strategy for open
economy.
neoliberalism eclipsed
• ‘Washington consensus reconsidered’: failed
growth formula (Stiglitz, Krugman, Rodick)
revisit the intervention menu: educationtraining- industry policies …
• welfare states and globalisation: created
incentives for investing in productivity ; and
high quality workforce
• Remaking the Australian way?
Remaking the Australian way
• Build on “3rd wave” of economic reform
• Industry beyond ‘rocks and crops’
• Tackle low skill traps\ high performance work
practices\ national training standards\
research and development\ innovation
framework