The ‘third way’ broadly encapsulates the idea of an alternative to both capitalism and socialism. The word was first used by a group of people called fascists, which could be used to describe traditional social democrats. Presently, however the third way represents the notion of an alternative traditional social democracy and neo-liberalism. Even though the ‘third way’ is inexact and is exposed to a number of interpretations, certain characteristic third-way themes can be acknowledged.
The first is the belief that socialism is dead, which means there is no alternative to what clause 4 of the U.K Labour Party’s constitution which was rewritten in the year 1995. This is referenced to as ‘a dynamic market economy’. This point encapsulates the acceptance of globalization and belief that the capitalist society has transformed into a ‘know ledged economy’ which is based on I.T, business flexibility, labour at which individuals are skilled. The fact that the market is more accepted rather than the state and an adoption towards pro-business and enterprise attitude, reassures that the third way is building on top of the firm neoliberal revolution foundations.
The second belief is the highlighting of moral responsibility and the community. Traditional socialists beckoned on the community based on cooperation in dealing with problems as a group rather than based on individual effort. On the other hand communitarianism which influences the third way is lined with the liberal individual criticism. Communitarian theorists like, Michael Sandel and Alistardar Macintyre argued that individuals are logical when dealing with the ‘outside’ world. Liberalism on the other hand has simply downgraded the public good idea due to egoistic and selfish behaviour.
Both third way and neoliberlism have agreed on the economic ideas however they contrast with the moral and social ethics as the third way rejects the physiological basis.
Market fundamentalism promotes a danger in providing a set-to undermines society’s moral foundations.
The Blair project in the U.K, which is a version of the third way, tries to combine both liberal ideas with the ideas of communitarians. This combination process produces a new branch of liberalism a ‘New Liberalism’ known as Communitarian Liberalism. Communitarian Liberalism cornerstone belief is that both rights and responsibilities balance each other out. This opinion is the foundation of a ‘new’ individualism, which endorses autonomy by emphasises that individuals operate independently.
From this point of view, both neoliberalism and social democracy have maximised the rights not responsibilities like social and welfare rights.
Therefore third way politics attempts to correct a ‘responsibility deficit’ in society.
The third belief of the third way is a consensus view of society, which contrasts to socialisms conflicting views of society. Old –style social democrats believe that the community initiates ties that bind society’s members together, which ignore the economic and social class differences. On the contrary, the ‘knowledged-driven economy’ gives the idea that material rewards are no longer given to people due to structural inequalities but to the work-related skills across society itself.
Consensus and social harmony are in junction with the third way structure as it rejects the moral and ideological thinking as it forms a non-dualistic view of the world.
The supporters of the third way like politicians approve of interdependence, fairness, enterprise, self-reliance and self-opportunity.
The fourth belief is based on a concern with social inclusion for the traditional socialist commitment to equality. This is obvious as there is emphasis on the liberal ideas like opportunity.
The third way rejects the neoliberal view of ‘standing on your two own feet’ and the comprehensive belief of social democrats ‘cradle to the grave’ welfare. Alternatively it proposes the idea of welfare reform whereby welfare should be pinpointed on the ‘socially exclusive’ and should pursue the approach of liberals whereby they ‘help people to help themselves’, or as Clinton put it, giving people ‘a hand up, not a hand out. The third way’s policies of welfare should have the objective to achieve in widening access rights to work, conjunction with the ‘workfare’ idea by the US. This belief is for the welfare support, to become conditional so that people will become self-reliant and have a willingness to look for work.
Ultimately, the final belief is the proper role of state. Neoliberals believe there should be less state intervention whereby the state acts as a ‘nightwatchman’, while the social democrats believe that the state should counter-balance capitalism’s injustice. The third way supports the idea of competition.
A competition state beckons on the role to follow strategies for national prosperity in conditions of global competition. Therefore the state has the ability to contemplate on social investment, which means improving the economy and most essentially, reinforcing the skills and knowledge of the country’s workforce. This is a move towards the ‘supply side’ whereby attempts to develop competitiveness and enhance production, rather than social democrats who advance towards the ‘demand side’ which attempts to reach the goal to increase consumption and erase poverty.
The government’s main priority should be education rather than social security.
As education brings out personal development, which is a modern liberal view and promotes employability and benefits the economy, which is a classical liberal view, it should be valued.
Therefore from this viewpoint, the government is a fundamental body, which aims to value skills, beliefs, and knowledge rather than carry out a social engineering and/or economic programme.
In conclusion, (with these points in mind) the best ideology to uphold and structure post-industrialisation is the third way with its economic beliefs and rights for individuals. It not only allows equal opportunity but full employability, welfare-to-work, rights and responsibilities, meritocracy, globalization, information society and last but not least a market state.