For more than a century, many reformers and politicians in the West have believed that liberal democratic capitalism was evolving, appropriately and irresistibly, in the direction of socialism, driven by economic planning. Even in its later form, Liberalism seemed transitional and unwholesome, soured by individualism, unsatisfying in its conception of a good society, unequal to the demands of social justice.

It was thought that Socialism would take civilisation to a higher stage.

Those who took this view were not necessarily Marxists. Many militated in reform movements, rather than in the revolutionary ranks. They sought an alternative system capable of achieving the best of both worlds – preserving the political freedoms of liberal democracy, while introducing new concepts based on economic planning, public ownership and economic equality.

Core thinking

This represented, in a nutshell, the core thinking of European socialists as an ideal – liberal democracy reconstructed into a benign and democratic socialism, or a sort of “third way” between communism and capitalism.

The system seemed both exciting and promising. “Socialist” ideas were put into practice. The thought of advancing democracy from the civil to the political sphere, and on to the social and economic dimension of politics, was appealing. The movement gathered momentum in various countries at varying speed.

The Great Depression of the 1930s demonstrated in no uncertain terms the havoc which the market could bring to many.

The rapid, post-war economic growth in the Western economies, and the Cold War that separated Europe by an Iron Curtain in the l960s, sustained the aspirations of the optimists. The vision gained credence from the successes of European social democracies, particularly Sweden.

Focus of criticism

Against the background of the Soviet experience, the democratic Left emphasized its anti-communism. In the light of the economic growth registered in the West, the democratic left focused its criticism of capitalism on individual alienation, the culture of consumption, and the dilution of the sense of community. Issues of racial injustice and environmental sentiments also began to surface.

Not everyone concerned about these issues necessarily had socialism in mind as a solution. Explicitly or not, however, many of the critics from the left were pointing in that direction.

This criticism of the limitations of capitalism continues unabated today– but the solutions many had in mind in the initial stages do not now have the same relevance.

The sheer magnitude of the communist collapse had a devastating impact on evaluations of the performance of the command economy. It is now indisputable that a policy of rigid national planning and extensive public ownership impoverished the people.

Repeated efforts to reform communism from within, to make it more efficient, withered on the grapevine. It is in human nature that the common man gravitates towards every window of political light as soon as it is opened.

Current of progress

Western European countries that have had Socialist and Labour Parties in power have mellowed with experience, and drifted with the current of progress. Soon after World War Two, the accent was no longer on replacing capitalism. Instead, programmes were launched for limited nationalisation and the extension of the welfare state. Political ideals and social and economic institutions have emerged to socialise industrial production and investment.

These, supplemented by social insurance, social education and other influences are meant to eliminate the irrationalities and inequities of capitalism. The accent is on the overall objective to achieve an equitable and just distribution of income and life chances, greater social harmony, and a movement away from an alienated, possessive individualism.

In its latter-day context, socialism rests on a foundation of constitutionalism. It guarantees individual, political and civil liberty, and subordinates its rationale to the principles of basic social justice.

The capacity to hold leaders accountable is essential to the limitation of power.

In the context of all the above, the whole corpus of latter-day democratic socialist thinking requires democracy.

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