Brotherhood Comment April 2009
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ISSN 1320 8632A regul Ar upd Ate from the r ese Arch And policy centreApril 2009Social policy, social democracy and the GFCWhat will be the long-term impact The social democratic approach They informed the universalist of the global financial crisis on also assumes a market economy. welfare reforms of the Whitlam Australian public policy? No less However, in a tradition going years. These fell foul of a major a person than the Prime Minister, back to Marx and T H Marshall, downturn in the global economy. Kevin Rudd (2009), has proposed it emphasises that it is more often Will Rudd’s social aspirations meet that we are at ‘a turning point market failure and inequality than the same fate? We don’t think so.between one epoch and the next, weakness of character that empties when one orthodoxy is overthrown citizenship of substance. States In the 1970s and 80s there was and another takes its place’. need to uphold the economic and a very limited understanding of He identifies the old epoch as social rights of citizens as a basis the nexus between economic and neoliberalism and the new as social of genuine economic and social social policy. Welfare reformers democracy. All of this at a time participation. Here exclusion is did not think in terms of social when the federal government has essentially a problem of inequality. services as an economic investment, been establishing social inclusion while neoliberals considered them as a new framework for welfare. ...

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ISSN 1320 8632
A regul Ar upd Ate from the r ese Arch And policy centre
April 2009
Social policy, social democracy and the GFC
What will be the long-term impact The social democratic approach They informed the universalist
of the global financial crisis on also assumes a market economy. welfare reforms of the Whitlam
Australian public policy? No less However, in a tradition going years. These fell foul of a major
a person than the Prime Minister, back to Marx and T H Marshall, downturn in the global economy.
Kevin Rudd (2009), has proposed it emphasises that it is more often Will Rudd’s social aspirations meet
that we are at ‘a turning point market failure and inequality than the same fate? We don’t think so.
between one epoch and the next, weakness of character that empties
when one orthodoxy is overthrown citizenship of substance. States In the 1970s and 80s there was
and another takes its place’. need to uphold the economic and a very limited understanding of
He identifies the old epoch as social rights of citizens as a basis the nexus between economic and
neoliberalism and the new as social of genuine economic and social social policy. Welfare reformers
democracy. All of this at a time participation. Here exclusion is did not think in terms of social
when the federal government has essentially a problem of inequality. services as an economic investment,
been establishing social inclusion while neoliberals considered them
as a new framework for welfare. Australia’s Social Inclusion Board wasteful spending simply because
What would be a social democratic (2008) has already shown signs of they were provided by government.
approach to social inclusion? a social democratic intent. Its first
principle emphasises the importance Even before the global financial
This question sharpens our sense of universal services: ‘Funding and crisis, a much more integrated
that there are indeed ‘varieties service delivery should promote approach to social and economic
of social inclusion’. Silver has equitable access to universal benefits policy was emerging. Internationally,
characterised social inclusion in and services for Australians in all a new generation of development
terms of three paradigms: solidarity, their diversity …’ This emphasis on economists had rediscovered the
specialisation and monopoly. The universality contrasts strongly with importance of effective social
second and third are of special previous neoliberal preoccupations policy as infrastructure for effective
interest because they correspond with getting people off welfare. operation of markets (Green 2008),
very roughly to ‘neoliberalism’ while welfare state scholars showed
and ‘social democracy’ (see Of course, social democratic policy how big social spending had
Daly & Silver 2008). aspirations are not new in Australia. proven a competitive advantage,
According to Silver, specialisation Continued page 2
(corresponding to neoliberalism)
posits the market as the primary Contents
mechanism for achieving inclusion.
Stemming from the ideas of 4–5Managingtheimpactoftheglobalfinancialcrisisonsocialandeconomicparticipation
Adam Smith and John Locke,
Ageingwell,planningwisely:strengtheningAustralia’sretirementincomessystem 6
it understands the excluded as
Notimelikethepresent:prioritisingpoliciestosupportfamilies 7a kind of ‘underclass’ arising
from the failure of individual 8Globalfinancialcrisisandcorporateresponsibility:regulatingtoavoidapovertycrisis
citizens to achieve independence
T heBrotherhood’sGreenCollarJobsProject:thecaseforaccessible,decent,greenjobs 9and self-sufficiency. As in the
Poor Law tradition, policies B eyondtheclassroom:learningsupportfordisadvantagedstudents 0
for inclusion are a combination
F osteringcivicengagementofdisadvantagedyouth:CommunityServicesLeadershipProgram of paternalistic correction of
bad behaviour and charitable Towardsculturallyinclusivesocialinclusion 2
support for the truly deserving.
Muchmorethanchild’splay:assessingintegratedearlychildhoodinitiatives 3
Evaluatingatargetedchildandparentintervention:HIPPY 4
www.bsl.org.au April2009Continued from page 1 News
Referencesrather than a handicap, in open- Realising a vision for aged care
Daly, M & Silver, H 2008, market European economies
‘Social exclusion and social capital: In April 2002, the Myer Foundation announced it would (Glatzer & Rueschemeyer 2005). A comparison and critique’, Theory invest $1 million provided by the Sidney Myer Fund in
& Society, vol. 37, pp. 537–66. the future of aged care in Australia, through its 2020: Through the COAG human capital
Glatzer, M & Rueschemeyer, D 2005, A Vision for Aged Care in Australia project. Released agenda, Australian economic Globalization and the future of later that year, the report presented images of an aged policy has already accommodated the welfare state, University of care world in 2020. The gaps revealed between current an expanded role for social Pittsburgh Press, Pittsburgh.
reality (2002) and a desirable future (2020) highlighted investment in improving the labour Green, D 2008, From poverty the challenges ahead as the number of people needing supply. The Rudd government’s to power, Oxfam, Oxford.
care increases with Australia’s ageing population.Keynesian-style economic stimuli,
Rudd, K 2009, ‘The global financial crisis’,
however, represent a much broader The Monthly, no. 42, February, Since then, the Myer Foundation has funded a number potential scope for future social viewed 27 March 2009,
of strategic initiatives to keep attention on key aged <http://www.themonthly.com.au/ intervention. Big spending on
care issues. The Brotherhood of St Laurence has been tm/node/1421>items such as schools and social
engaged by the foundation to track the process of housing in order to boost demand Social Inclusion Board 2008, Social
influence on government policy and assess its impact inclusion principles for Australia, viewed can transform social as well
on practice. The research project will be managed 27 March 2009, <http://www.deewr.gov.au/ as economic infrastructure.
Department/SocialInclusion/Documents/ by Dr Helen Kimberley and the research undertaken
SocialInclusionPrinciplesforAustralia.pdf>. by Astrid Reynolds of McVicar & Reynolds.Wray (2008) recently summarised
Wray, L 2008, ‘The continuing legacy of the ongoing relevance of Keynesian
John Maynard Keynes’, in M Forstater &
thought in terms of this proposition: Understanding homelessness and L Wray (eds), Keynes for the twenty-first
‘Entrepreneurs produce what century, Palgrave, Basingstoke, UK. cognitive impairment
they expect to sell, and there is no
Alzheimer’s Australia, the peak body providing support reason to presume that the sum
and advocacy for people living with dementia, has of these production decisions is
engaged the Brotherhood of St Laurence to conduct consistent with the full employment
a project to build an informed picture of the specific level’ (p.1). Hence there is a need for
needs of people with cognitive impairment (including a permanent capacity to socialise
dementia) who are homeless or have insecure housing. investment to the degree necessary
The work will also involve preparing a practice guide to ensure macroeconomic efficiency.
for housing workers who support these clients.
If the Rudd Government’s stimuli
For more information about either project, contact:prove to be not simply one-off
events for an emergency, but first
Helen Kimberleydecisive steps towards a new more
(03) 9483 1306 regulated approach to managing
hkimberley@bsl.org.audemand, then the possibilities for
an Australian social democratic
approach to social inclusion will
be significantly expanded.
Paul Smyth
(03) 9483 1177
psmyth@bsl.org.au
Published in April 2009 by Brotherhood Comment is published three times a year by the Research
Brotherhood of St Laurence and Policy Centre of the Brotherhood of St Laurence.
67 Brunswick Street
Fitzroy, Victoria 3065, Australia The Brotherhood of St Laurence works not just to alleviate but to prevent poverty, focusing
ABN 24 603 467 024on people at the greatest risk at key life transitions. It is a national voice on matters of
disadvantage, understanding that poverty’s remedy lies in integrating social and economic
Telephone: (03) 9483 1183
policy so as to strengthen the capacities of individuals and communities. Its research, service Facsimile: (03) 9417 2691
development and delivery, and advocacy aim to address unmet needs and translate the learning E-mail: publications@bsl.org.au
into new policies, programs and practices for implementation by governments and others.
2April2009 www.bsl.org.auFrom the General Manager
Visitors to our Research and Policy Some reregulation of the financial the Australian Government with
Centre will observe a significant system will be inevitable. Serena numerous community partners,
renovation of our office space. We Lillywhite considers the significance and outlines the findings emerging
are pulling away the old warren of of the crisis for international and from evaluations. Tony Barnett
enclosed work stations and library national corporate responsibility, presents some of the methodological
and opening them up to the air and pointing to the need for forms of issues in designing the evaluation
light. Work amid the renovat

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