Third way (centrism)
Encyclopedia

The Third Way refers to various political positions which try to reconcile right-wing and left-wing politics
Left-wing politics
In politics, Left, left-wing and leftist generally refer to support for social change to create a more egalitarian society...

 by advocating a varying synthesis of right-wing economic and left-wing social policies. Third Way approaches are commonly viewed from within the first- and second-way perspectives as representing a centrist
Centrism
In politics, centrism is the ideal or the practice of promoting policies that lie different from the standard political left and political right. Most commonly, this is visualized as part of the one-dimensional political spectrum of left-right politics, with centrism landing in the middle between...

 reconciliation between capitalism
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...

 and state socialist command economy. Less often, the phrase "Third Way" is used to refer to Distributism
Distributism
Distributism is a third-way economic philosophy formulated by such Catholic thinkers as G. K...

.
Third Way policies were enacted in the 1980s in Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

 by the Hawke
Bob Hawke
Robert James Lee "Bob" Hawke AC GCL was the 23rd Prime Minister of Australia from March 1983 to December 1991 and therefore longest serving Australian Labor Party Prime Minister....

/Keating
Paul Keating
Paul John Keating was the 24th Prime Minister of Australia, serving from 1991 to 1996. Keating was elected as the federal Labor member for Blaxland in 1969 and came to prominence as the reformist treasurer of the Hawke Labor government, which came to power at the 1983 election...

 Labor
Australian Labor Party
The Australian Labor Party is an Australian political party. It has been the governing party of the Commonwealth of Australia since the 2007 federal election. Julia Gillard is the party's federal parliamentary leader and Prime Minister of Australia...

 governments. The most recent prominent examples are the Clinton administrations in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 as well as 2008 presidential candidate Hillary Clinton, the Labour Party
Labour Party (UK)
The Labour Party is a centre-left democratic socialist party in the United Kingdom. It surpassed the Liberal Party in general elections during the early 1920s, forming minority governments under Ramsay MacDonald in 1924 and 1929-1931. The party was in a wartime coalition from 1940 to 1945, after...

 (New Labour) governments of the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 under Tony Blair
Tony Blair
Anthony Charles Lynton Blair is a former British Labour Party politician who served as the Prime Minister of the United Kingdom from 2 May 1997 to 27 June 2007. He was the Member of Parliament for Sedgefield from 1983 to 2007 and Leader of the Labour Party from 1994 to 2007...

 and Gordon Brown
Gordon Brown
James Gordon Brown is a British Labour Party politician who was the Prime Minister of the United Kingdom and Leader of the Labour Party from 2007 until 2010. He previously served as Chancellor of the Exchequer in the Labour Government from 1997 to 2007...

, Gerhard Schröder
Gerhard Schröder
Gerhard Fritz Kurt Schröder is a German politician, and was Chancellor of Germany from 1998 to 2005. A member of the Social Democratic Party of Germany , he led a coalition government of the SPD and the Greens. Before becoming a full-time politician, he was a lawyer, and before becoming Chancellor...

's "Neue Mitte" in Germany the Liberal Party
Liberal Party of Canada
The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative...

 government of Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

 under Jean Chrétien
Jean Chrétien
Joseph Jacques Jean Chrétien , known commonly as Jean Chrétien is a former Canadian politician who was the 20th Prime Minister of Canada. He served in the position for over ten years, from November 4, 1993 to December 12, 2003....

 and Paul Martin
Paul Martin
Paul Edgar Philippe Martin, PC , also known as Paul Martin, Jr. is a Canadian politician who was the 21st Prime Minister of Canada, as well as leader of the Liberal Party of Canada....

, the Australian Labor Party
Australian Labor Party
The Australian Labor Party is an Australian political party. It has been the governing party of the Commonwealth of Australia since the 2007 federal election. Julia Gillard is the party's federal parliamentary leader and Prime Minister of Australia...

 under Kevin Rudd
Kevin Rudd
Kevin Michael Rudd is an Australian politician who was the 26th Prime Minister of Australia from 2007 to 2010. He has been Minister for Foreign Affairs since 2010...

, the Polder Model
Polder Model
The polder model is a term with uncertain origin that was first used to describe the internationally acclaimed Dutch version of consensus policy in economics, specifically in the 1980s and 1990s. However, the term was quickly adopted for a much wider meaning, for similar cases of consensus...

 under Wim Kok
Wim Kok
Willem "Wim" Kok ; born September 29, 1938) is a retired Dutch politician of the Labour Party . He served as Prime Minister of the Netherlands from August 22, 1994 until July 22, 2002....

 in the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...

, the Democratic Party - demokraci.pl in Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...

 and the previous Labour government in New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...

, led by current UNDP Administrator Helen Clark
Helen Clark
Helen Elizabeth Clark, ONZ is a New Zealand political figure who was the 37th Prime Minister of New Zealand for three consecutive terms from 1999 to 2008...

.

The Third Way rejects both laissez-faire
Laissez-faire
In economics, laissez-faire describes an environment in which transactions between private parties are free from state intervention, including restrictive regulations, taxes, tariffs and enforced monopolies....

 and socialist approaches to economic governance, but chiefly stresses technological development, education, and competitive mechanisms to pursue economic ends according to the Democratic Leadership Council. One of its central aims is to protect the modern welfare state through reforms that maintain its economic integrity.

The third way has been criticized by some conservatives and libertarians who advocate laissez-faire capitalism. It has also been heavily criticized by many social democrats, democratic socialists and communists in particular as a betrayal of left-wing values. Specific definitions of third way policies may differ between Europe and America.

Past invocations of a political 'third way' or a 'middle way' have included the Fabian Socialism
Fabian Society
The Fabian Society is a British socialist movement, whose purpose is to advance the principles of democratic socialism via gradualist and reformist, rather than revolutionary, means. It is best known for its initial ground-breaking work beginning late in the 19th century and continuing up to World...

, Distributism
Distributism
Distributism is a third-way economic philosophy formulated by such Catholic thinkers as G. K...

, Technocracy (bureaucratic)
Technocracy (bureaucratic)
Technocracy is a form of government where technical experts are in control of decision making in their respective fields. Economists, engineers, scientists, health professionals, and those who have knowledge, expertise or skills would compose the governing body...

, Keynesian economics, Franklin Roosevelt's New Deal, Italian Fascism
Italian Fascism
Italian Fascism also known as Fascism with a capital "F" refers to the original fascist ideology in Italy. This ideology is associated with the National Fascist Party which under Benito Mussolini ruled the Kingdom of Italy from 1922 until 1943, the Republican Fascist Party which ruled the Italian...

 under Benito Mussolini
Benito Mussolini
Benito Amilcare Andrea Mussolini was an Italian politician who led the National Fascist Party and is credited with being one of the key figures in the creation of Fascism....

, Harold Macmillan
Harold Macmillan
Maurice Harold Macmillan, 1st Earl of Stockton, OM, PC was Conservative Prime Minister of the United Kingdom from 10 January 1957 to 18 October 1963....

's 1950s One Nation Conservatism
One Nation Conservatism
One nation, one nation conservatism, and Tory democracy are terms used in political debate in the United Kingdom to refer to a certain wing of the Conservative Party...

 and Phillip Blond's
Phillip Blond
Phillip Blond is an English political thinker, Anglican and theologian, and director of the think tank ResPublica.He gained prominence from a cover story in Prospect magazine in the February 2009 edition with his essay on Red Toryism, which proposed a radical communitarian traditionalist...

 Red Tory
Red Tory
A red Tory is an adherent of a particular political philosophy, tradition, and disposition in Canada somewhat similar to the High Tory tradition in the United Kingdom; it is contrasted with "blue Tory". In Canada, the phenomenon of "red toryism" has fundamentally, if not exclusively, been found in...

ism.

Origins

The term "Third Way" has been used to explain a variety of political courses and ideologies in the last few centuries. These ideas were implemented by progressives in the early 20th century. The Third Way philosophy was extended in the 1950s by German ordoliberal
Ordoliberalism
Ordoliberalism is a school of liberalism that emphasised the need for the state to ensure that the free market produces results close to its theoretical potential . The theory was developed by German economists and legal scholars such as Walter Eucken, Franz Böhm, Hans Grossmann-Doerth and Leonhard...

 economists such as Wilhelm Röpke
Wilhelm Röpke
Wilhelm Röpke was Professor of Economics, first in Jena, then in Graz, Marburg, Istanbul and finally in Geneva, and the main spiritual father of the German social market economy, theorising and collaborating to organise the post-World War II economic re-awakening of the then destroyed German...

, resulting in the development of the concept of the social market economy
Social market economy
The social market economy is the main economic model used in West Germany after World War II. It is based on the economic philosophy of Ordoliberalism from the Freiburg School...

. Most significantly, Harold Macmillan
Harold Macmillan
Maurice Harold Macmillan, 1st Earl of Stockton, OM, PC was Conservative Prime Minister of the United Kingdom from 10 January 1957 to 18 October 1963....

, British Prime Minister from 1957 to 1963, based his philosophy of government on what he entitled in a book, The Middle Way
The Middle Way
The Middle Way is a book on political philosophy written by Harold Macmillan and first published in 1938 )...

(1938). The phrase also figures in the early thought of Mussolini, looking as he was to define a Fascist path between the two alternatives of liberalism and bolshevism in post-Great war Italy.

Modern usage

The term was later used by politicians in the 1990s who wished to incorporate Margaret Thatcher
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...

 and Ronald Reagan
Ronald Reagan
Ronald Wilson Reagan was the 40th President of the United States , the 33rd Governor of California and, prior to that, a radio, film and television actor....

's projects of economic deregulation, privatization, and globalization
Globalization
Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...

 into the mainstream centre-left
Centre-left
Centre-left is a political term that describes individuals, political parties or organisations such as think tanks whose ideology lies between the centre and the left on the left-right spectrum...

 political parties.

In the last decade the Third Way can be defined as:
A leading defender of the spread of Third Way influence in modern democracies has been British sociologist Anthony Giddens
Anthony Giddens
Anthony Giddens, Baron Giddens is a British sociologist who is known for his theory of structuration and his holistic view of modern societies. He is considered to be one of the most prominent modern contributors in the field of sociology, the author of at least 34 books, published in at least 29...

. Giddens regularly expounds on Third Way philosophy through contributions to progressive policy think tank Policy Network
Policy Network
Policy Network is a London-based centre-left international think tank. It is leading platform for long-term strategic thinking, policymaking and international best practice, influencing policy debates in the UK, Europe and internationally...

.

Australia

Under the nominally centre-left
Centre-left
Centre-left is a political term that describes individuals, political parties or organisations such as think tanks whose ideology lies between the centre and the left on the left-right spectrum...

 Australian Labor Party
Australian Labor Party
The Australian Labor Party is an Australian political party. It has been the governing party of the Commonwealth of Australia since the 2007 federal election. Julia Gillard is the party's federal parliamentary leader and Prime Minister of Australia...

 from 1983 to 1996, the Bob Hawke
Bob Hawke
Robert James Lee "Bob" Hawke AC GCL was the 23rd Prime Minister of Australia from March 1983 to December 1991 and therefore longest serving Australian Labor Party Prime Minister....

 and Paul Keating
Paul Keating
Paul John Keating was the 24th Prime Minister of Australia, serving from 1991 to 1996. Keating was elected as the federal Labor member for Blaxland in 1969 and came to prominence as the reformist treasurer of the Hawke Labor government, which came to power at the 1983 election...

 governments pursued many economic policies associated with economic rationalism
Economic rationalism
Economic rationalism is an Australian term in discussion of microeconomic policy, applicable to the economic policy of many governments around the world, in particular during the 1980s and 1990s....

, such as floating the Australian Dollar
Australian dollar
The Australian dollar is the currency of the Commonwealth of Australia, including Christmas Island, Cocos Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu...

 in 1983, reductions in trade tariff
Tariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....

s, taxation reforms, changing from centralised wage-fixing to enterprise bargaining
Enterprise bargaining agreement
Enterprise bargaining is wage and working conditions being negotiated at the level of the individual organisations. Once established, they are legally binding on employers and employees....

, heavy restrictions on union activities including on strike action and pattern bargaining, the privatisation of government run services and enterprises such as Qantas
Qantas
Qantas Airways Limited is the flag carrier of Australia. The name was originally "QANTAS", an initialism for "Queensland and Northern Territory Aerial Services". Nicknamed "The Flying Kangaroo", the airline is based in Sydney, with its main hub at Sydney Airport...

 and the Commonwealth Bank, and wholesale deregulation of the banking system. Keating also proposed a regressive Goods and Services Tax
Goods and Services Tax (Australia)
The GST is a broad sales tax of 10% on most goods and services transactions in Australia. It is a value added tax, not a sales tax, in that it is refunded to all parties in the chain of production other than the final consumer....

 (GST) in 1985, however due to its unpopularity amongst Labor as well as the electorate, was scrapped. The party also desisted from other reforms, such as wholesale labour market deregulation (e.g., WorkChoices
WorkChoices
The Workplace Relations Act 1996, as amended by the Workplace Relations Amendment Act 2005, popularly known as Work Choices, was a Legislative Act of the Australian Parliament that came into effect in March 2006 which involved many controversial amendments to the Workplace Relations Act 1996, the...

), the eventual GST, the privatisation of Telstra
Telstra
Telstra Corporation Limited is an Australian telecommunications and media company, building and operating telecommunications networks and marketing voice, mobile, internet access and pay television products and services....

 and welfare reform
Welfare reform
Welfare reform refers to the process of reforming the framework of social security and welfare provisions, but what is considered reform is a matter of opinion. The term was used in the United States to support the Personal Responsibility and Work Opportunity Act...

 including "work for the dole
Work for the dole
Work for the Dole is an Australian federal government program that is a form of workfare, work-based welfare. It was first permanently enacted in 1998, having been trialed in 1997....

", which John Howard
John Howard
John Winston Howard AC, SSI, was the 25th Prime Minister of Australia, from 11 March 1996 to 3 December 2007. He was the second-longest serving Australian Prime Minister after Sir Robert Menzies....

 and the Liberal Party of Australia
Liberal Party of Australia
The Liberal Party of Australia is an Australian political party.Founded a year after the 1943 federal election to replace the United Australia Party, the centre-right Liberal Party typically competes with the centre-left Australian Labor Party for political office...

 were to initiate after winning office in 1996.

Various ideological beliefs were factionalised under reforms to the ALP under Gough Whitlam
Gough Whitlam
Edward Gough Whitlam, AC, QC , known as Gough Whitlam , served as the 21st Prime Minister of Australia. Whitlam led the Australian Labor Party to power at the 1972 election and retained government at the 1974 election, before being dismissed by Governor-General Sir John Kerr at the climax of the...

, resulting in what is now known as the Socialist Left who tend to favour a more interventionist economic policy, more authoritative top-down controls and some socially progressive ideals, and Labor Right
Labor Right
The Labor Right, or Labor Unity in some State branches, or Centre Unity in NSW, is the organised faction of the Australian Labor Party that tends to be more economically liberal and socially conservative than Labor Left....

, the now dominant faction that is pro-business, more economically liberal and focuses to a lesser extent on social issues. The Whitlam government was first to use the term economic rationalism
Economic rationalism
Economic rationalism is an Australian term in discussion of microeconomic policy, applicable to the economic policy of many governments around the world, in particular during the 1980s and 1990s....

. The Gough Whitlam Labor government from 1972 to 1975 changed from a democratic socialism
Democratic socialism
Democratic socialism is a description used by various socialist movements and organizations to emphasize the democratic character of their political orientation...

 platform to social democracy
Social democracy
Social democracy is a political ideology of the center-left on the political spectrum. Social democracy is officially a form of evolutionary reformist socialism. It supports class collaboration as the course to achieve socialism...

, their precursor to the party's "Third Way" policies. Under the Whitlam government, tariff
Tariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....

s across the board were cut by 25 percent after 23 years of Labor being in opposition.

Former Labor Prime Minister Kevin Rudd
Kevin Rudd
Kevin Michael Rudd is an Australian politician who was the 26th Prime Minister of Australia from 2007 to 2010. He has been Minister for Foreign Affairs since 2010...

's first speech to parliament in 1998 stated:
Competitive markets are massive and generally efficient generators of economic wealth. They must therefore have a central place in the management of the economy. But markets sometimes fail, requiring direct government intervention through instruments such as industry policy. There are also areas where the public good dictates that there should be no market at all.
We are not afraid of a vision in the Labor Party, but nor are we afraid of doing the hard policy yards necessary to turn that vision into reality. Parties of the Centre Left around the world are wrestling with a similar challenge—the creation of a competitive economy while advancing the overriding imperative of a just society. Some call this the `third way'. The nomenclature is unimportant. What is important is that it is a repudiation of Thatcherism and its Australian derivatives represented opposite. It is in fact a new formulation of the nation's economic and social imperatives.
Rudd is critical of free market economists such as Friedrich Hayek
Friedrich Hayek
Friedrich August Hayek CH , born in Austria-Hungary as Friedrich August von Hayek, was an economist and philosopher best known for his defense of classical liberalism and free-market capitalism against socialist and collectivist thought...

, although Rudd describes himself as "basically a conservative when it comes to questions of public financial management", pointing to his slashing of public service jobs as a Queensland governmental advisor.

Canada

In Canada following the election of Jean Chrétien
Jean Chrétien
Joseph Jacques Jean Chrétien , known commonly as Jean Chrétien is a former Canadian politician who was the 20th Prime Minister of Canada. He served in the position for over ten years, from November 4, 1993 to December 12, 2003....

 and the Liberal Party of Canada
Liberal Party of Canada
The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative...

 in 1993 the new government became focused on debt and deficit reduction, leading to a fiscally conservative agenda cutting billions of dollars from provincial transfer payments and other areas of government funding. The Liberals managed to eliminate a C$42 billion deficit and pay down 36 billion dollars in debt. However, these steep funding cuts led to cuts to some social programs such as Katimavik
Katimavik
-Overview:Each Katimavik program consists of groups of 11 youths aged 17 to 21 who are drawn from all across Canada. They travel together to one or two different places in Canada for a period of six months. During the 2007-2008 program year there were 99 such groups spread across Canada...

, reduced resources for the Canadian military, and charges by the provinces and municipalities of federal downloading, typified by a significant increase in wait times for medical services (a provincial responsibility).

Unlike previous Liberal governments in the late 20th century, the Chrétien government pursued corporate tax cuts and the expansion of "free trade", leading to the party's support of the North American Free Trade Agreement
North American Free Trade Agreement
The North American Free Trade Agreement or NAFTA is an agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. It superseded the Canada – United States Free Trade Agreement...

 (NAFTA). As of 2007 the Liberal Party of Canada still advocates a social liberal agenda based on balanced budgets, support for globalization
Globalization
Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...

 and fiscal "moderation".

Canada's largest leftwing party, the social-democratic New Democratic Party
New Democratic Party
The New Democratic Party , commonly referred to as the NDP, is a federal social-democratic political party in Canada. The interim leader of the NDP is Nycole Turmel who was appointed to the position due to the illness of Jack Layton, who died on August 22, 2011. The provincial wings of the NDP in...

 (NDP) has also experimented with the so-called "Third Way" at various times. During the government of Roy Romanow
Roy Romanow
Roy John Romanow, PC, OC, QC, SOM is a Canadian politician and the 12th Premier of Saskatchewan ....

 in the province of Saskatchewan
Saskatchewan
Saskatchewan is a prairie province in Canada, which has an area of . Saskatchewan is bordered on the west by Alberta, on the north by the Northwest Territories, on the east by Manitoba, and on the south by the U.S. states of Montana and North Dakota....

 from 1991–2003, the Saskatchewan New Democratic Party
Saskatchewan New Democratic Party
The Saskatchewan New Democratic Party is a social-democratic political party in the Canadian province of Saskatchewan. It currently forms the official opposition, but has been a dominant force in Saskatchewan politics since the 1940s...

 broke with its socialist past and followed a much more conservative economic agenda with the goal of reducing the province's debt. This was characterized by a program of hospital closures, program cuts and privatization. Romanow would later claim to be a "disciple" of the "Third Way" ideology of Tony Blair
Tony Blair
Anthony Charles Lynton Blair is a former British Labour Party politician who served as the Prime Minister of the United Kingdom from 2 May 1997 to 27 June 2007. He was the Member of Parliament for Sedgefield from 1983 to 2007 and Leader of the Labour Party from 1994 to 2007...

 (even though he had been in power for five and a half years before Blair's first election win). Romanow would also quip that he was a supporter of Blair's Third Way concept before it even existed.

United Kingdom

In 1938 Harold Macmillan
Harold Macmillan
Maurice Harold Macmillan, 1st Earl of Stockton, OM, PC was Conservative Prime Minister of the United Kingdom from 10 January 1957 to 18 October 1963....

 wrote a book entitled The Middle Way, advocating a compromise between capitalism and socialism, which was a precursor to the contemporary notion of the Third Way. Former Prime Minister Tony Blair
Tony Blair
Anthony Charles Lynton Blair is a former British Labour Party politician who served as the Prime Minister of the United Kingdom from 2 May 1997 to 27 June 2007. He was the Member of Parliament for Sedgefield from 1983 to 2007 and Leader of the Labour Party from 1994 to 2007...

 is cited as a Third Way politician. According to a former member of Blair's staff, Labour
Labour Party (UK)
The Labour Party is a centre-left democratic socialist party in the United Kingdom. It surpassed the Liberal Party in general elections during the early 1920s, forming minority governments under Ramsay MacDonald in 1924 and 1929-1931. The party was in a wartime coalition from 1940 to 1945, after...

 and Blair learnt from, and owes a debt to, the Bob Hawke
Bob Hawke
Robert James Lee "Bob" Hawke AC GCL was the 23rd Prime Minister of Australia from March 1983 to December 1991 and therefore longest serving Australian Labor Party Prime Minister....

's government in Australia in the 1980s on how to govern as a 'third way' party. Blair is a particular follower of the ideas of Anthony Giddens
Anthony Giddens
Anthony Giddens, Baron Giddens is a British sociologist who is known for his theory of structuration and his holistic view of modern societies. He is considered to be one of the most prominent modern contributors in the field of sociology, the author of at least 34 books, published in at least 29...

, as was his successor Gordon Brown
Gordon Brown
James Gordon Brown is a British Labour Party politician who was the Prime Minister of the United Kingdom and Leader of the Labour Party from 2007 until 2010. He previously served as Chancellor of the Exchequer in the Labour Government from 1997 to 2007...

.

United States

In the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

, "Third Way" adherents embrace fiscal conservatism
Fiscal conservatism
Fiscal conservatism is a political term used to describe a fiscal policy that advocates avoiding deficit spending. Fiscal conservatives often consider reduction of overall government spending and national debt as well as ensuring balanced budget of paramount importance...

 to a greater extent than traditional social liberals, and advocate some replacement of welfare with workfare
Workfare
Workfare is an alternative model to conventional social welfare systems. The term was first introduced by civil rights leader James Charles Evers in 1968; however, it was popularized by Richard Nixon in a televised speech August 1969...

, and sometimes have a stronger preference for market solutions to traditional problems (as in pollution market
Pollution market
A Pollution Market is a method of partly internalizing the costs a negative externality by setting up a government designated maximum amount of the specified activity and then auctioning or selling tradable permits to engage in some of the specified activity.For example, in a fictional state,...

s), while rejecting pure laissez-faire economics and other libertarian
Libertarianism
Libertarianism, in the strictest sense, is the political philosophy that holds individual liberty as the basic moral principle of society. In the broadest sense, it is any political philosophy which approximates this view...

 positions. The Third Way style of governing was firmly adopted and partly redefined during the administration of President
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....

 Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...

. With respect to U.S. presidents, the term "Third Way" was introduced by political scientist Stephen Skowronek
Stephen Skowronek
Stephen Skowronek is an American political scientist, noted for his research on American national institutions and the U.S. presidency, and for helping to stimulate the study of American political development....

, who wrote The Politics Presidents Make (1993, 1997;ISBN 0674689372) "Third Way" presidents "undermine the opposition by borrowing policies from it in an effort to seize the middle and with it to achieve political dominance. Think of Nixon’s economic policies, which were a continuation of Johnson’s “Great Society”; Clinton’s welfare reform and support of capital punishment; and Obama’s pragmatic centrism, reflected in his embrace, albeit very recent, of entitlements reform.

After Tony Blair
Tony Blair
Anthony Charles Lynton Blair is a former British Labour Party politician who served as the Prime Minister of the United Kingdom from 2 May 1997 to 27 June 2007. He was the Member of Parliament for Sedgefield from 1983 to 2007 and Leader of the Labour Party from 1994 to 2007...

 came to power in the UK
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

, Clinton, Blair and other leading Third Way adherents organized conferences to promote the Third Way philosophy in 1997 at Chequers
Chequers
Chequers, or Chequers Court, is a country house near Ellesborough, to the south of Aylesbury in Buckinghamshire, England, at the foot of the Chiltern Hills...

 in England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...

. The Third Way think tank
Third Way (think tank)
Third Way is a public policy think tank. The organization focuses on policies for private-sector economic growth, national security strategy, a clean energy, education and anti-poverty reform, and divisive culture issues. Third Way describes itself as moderate and progressive. In the media, the...

 and the Democratic Leadership Council
Democratic Leadership Council
The Democratic Leadership Council was a non-profit 501 corporation that, upon its formation, argued the United States Democratic Party should shift away from the leftward turn it took in the late 1960s, 1970s, and 1980s...

 are adherents of Third Way politics.

In 2004, several veteran U.S. Democrats founded a new Washington, DC organization entitled Third Way
Third Way (think tank)
Third Way is a public policy think tank. The organization focuses on policies for private-sector economic growth, national security strategy, a clean energy, education and anti-poverty reform, and divisive culture issues. Third Way describes itself as moderate and progressive. In the media, the...

, which bills itself as a "strategy center for progressives."

Other

Other leaders who have adopted elements of the Third Way style of governance include Juan Perón
Juan Perón
Juan Domingo Perón was an Argentine military officer, and politician. Perón was three times elected as President of Argentina though he only managed to serve one full term, after serving in several government positions, including the Secretary of Labor and the Vice Presidency...

 of Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...

, Juan Manuel Santos
Juan Manuel Santos
Juan Manuel Santos Calderón is a Colombian politician who has been the President of Colombia since 7 August 2010. He previously served as Minister of Foreign Trade, Minister of Finance, and Minister of National Defense.-Career:...

 of Colombia
Colombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...

, Leonel Fernández
Leonel Fernández
Leonel Antonio Fernández Reyna is a Dominican lawyer, academic, and the current President of the Dominican Republic since 2004. He held the same office from 1996 to 2000...

 of the Dominican Republic
Dominican Republic
The Dominican Republic is a nation on the island of La Hispaniola, part of the Greater Antilles archipelago in the Caribbean region. The western third of the island is occupied by the nation of Haiti, making Hispaniola one of two Caribbean islands that are shared by two countries...

, Fernando Henrique Cardoso
Fernando Henrique Cardoso
Fernando Henrique Cardoso – also known by his initials FHC – was the 34th President of the Federative Republic of Brazil for two terms from January 1, 1995 to December 31, 2002. He is an accomplished sociologist, professor and politician...

 of Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...

, Marianne Jelved
Marianne Jelved
Marianne Bruus Jelved née Hirsbro is a Danish politician, and is educated as a teacher and in the theory of education...

 of Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...

, François Bayrou
François Bayrou
François Bayrou is a French centrist politician, president of Union for French Democracy since 1998 and was a candidate in the 2002 and 2007 French presidential elections. In the first round, he received 18.6% of the vote, finishing in 3rd place and therefore was eliminated from the race....

 of France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

, Gerhard Schröder
Gerhard Schröder
Gerhard Fritz Kurt Schröder is a German politician, and was Chancellor of Germany from 1998 to 2005. A member of the Social Democratic Party of Germany , he led a coalition government of the SPD and the Greens. Before becoming a full-time politician, he was a lawyer, and before becoming Chancellor...

 of Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

, Ferenc Gyurcsány
Ferenc Gyurcsány
Ferenc Gyurcsány is a Hungarian politician. He was the sixth Prime Minister of Hungary from 2004 to 2009.He was nominated to take that position on 25 August 2004 by the Hungarian Socialist Party , after Péter Medgyessy resigned due to a conflict with the Socialist Party's coalition partner...

 of Hungary
Hungary
Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...

, Jens Stoltenberg
Jens Stoltenberg
is a Norwegian politician, leader of the Norwegian Labour Party and the current Prime Minister of Norway. Having assumed office on 17 October 2005, Stoltenberg previously served as Prime Minister from 2000 to 2001....

 of Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...

, Wim Kok
Wim Kok
Willem "Wim" Kok ; born September 29, 1938) is a retired Dutch politician of the Labour Party . He served as Prime Minister of the Netherlands from August 22, 1994 until July 22, 2002....

 of the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...

, Jose Socrates
José Sócrates
José Sócrates Carvalho Pinto de Sousa, GCIH , commonly known by José Sócrates , is a Portuguese politician who was the Prime Minister of Portugal from 12 March 2005 to 21 June 2011....

 of Portugal
Portugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...

 and Mir Zafarullah Khan Jamali of Pakistan
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...

, whose book's preface was written by Anthony Giddens
Anthony Giddens
Anthony Giddens, Baron Giddens is a British sociologist who is known for his theory of structuration and his holistic view of modern societies. He is considered to be one of the most prominent modern contributors in the field of sociology, the author of at least 34 books, published in at least 29...

.

Criticisms

Advocates of laissez-faire
Laissez-faire
In economics, laissez-faire describes an environment in which transactions between private parties are free from state intervention, including restrictive regulations, taxes, tariffs and enforced monopolies....

 capitalism
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...

, and those more radically left than democratic socialists, are staunch opponents of a mixed economy
Mixed economy
Mixed economy is an economic system in which both the state and private sector direct the economy, reflecting characteristics of both market economies and planned economies. Most mixed economies can be described as market economies with strong regulatory oversight, in addition to having a variety...

, even in the weaker form of the "third way." In 1990, after the dismantling of his country's communist government, Czechoslovakia's finance minister, Václav Klaus
Václav Klaus
Václav Klaus is the second President of the Czech Republic and a former Prime Minister .An economist, he is co-founder of the Civic Democratic Party, the Czech Republic's largest center-right political party. Klaus is a eurosceptic, but he reluctantly endorsed the Lisbon treaty as president of...

, declared, "We want a market economy without any adjectives. Any compromises with that will only fuzzy up the problems we have. To pursue a so-called Third Way is foolish. We had our experience with this in the 1960s when we looked for a socialism with a human face. It did not work, and we must be explicit that we are not aiming for a more efficient version of a system that has failed. The market is indivisible; it cannot be an instrument in the hands of central planners."

Third way is sometimes described as an idea of former social-democrat
Social democracy
Social democracy is a political ideology of the center-left on the political spectrum. Social democracy is officially a form of evolutionary reformist socialism. It supports class collaboration as the course to achieve socialism...

s which replaces socialism
Socialism
Socialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...

 with capitalism and a minimum of socialism, and a strategy to bring the social-democratic parties back to power where they have lost elections. Because the Third Way most commonly uses market mechanics and private ownership of the means of production; and in that sense it is fundamentally capitalist. It does not incorporate any of the economic theory that would stretch beyond already existing social democracy, which many on the left already see as capitalistic.

For example, Slavoj Žižek
Slavoj Žižek
Slavoj Žižek is a Slovenian philosopher, critical theorist working in the traditions of Hegelianism, Marxism and Lacanian psychoanalysis. He has made contributions to political theory, film theory, and theoretical psychoanalysis....

 argues that the notion of the Third Way emerged as the only alternative to the victorious global capitalism and its notion of liberal democracy
Liberal democracy
Liberal democracy, also known as constitutional democracy, is a common form of representative democracy. According to the principles of liberal democracy, elections should be free and fair, and the political process should be competitive...

 when the Second World
Second World
The term "Second World" is a phrase used to describe those countries which are allied with or are supported by the "First World" countries . These include countries supported by the United States, such as Colombia, Israel, etc., and those supported by the former Soviet Union, also known as the the...

 crumbled. Critics argue that third way politicians are in favour of ideas and policies that ultimately serve the interests of corporate power and the wealthy at the expense of the working class and the poor. Some also classify the Third Way as neosocialism
Neosocialism
Neosocialism was a political trend of socialism, represented in France during the 1930s and in Belgium, which included several revisionist tendencies in the French Section of the Workers' International...

 or "neoliberalism
Neoliberalism
Neoliberalism is a market-driven approach to economic and social policy based on neoclassical theories of economics that emphasizes the efficiency of private enterprise, liberalized trade and relatively open markets, and therefore seeks to maximize the role of the private sector in determining the...

 with a social touch". Other examples include Samuel Brittan
Samuel Brittan
Sir Samuel Brittan is a British columnist for the Financial Times and an author.At Cambridge he was taught by Peter Bauer and Milton Friedman...

 describing the Third Way as ‘Capitalism with a human face’.

In many western nations where social democratic or "socialist" parties have adopted centrist or third way policies or have been seen by some as doing so, many new leftwing parties have been able to attract voters who still adhere to the values of traditional left. These include The Left Party of Germany
The Left (Germany)
The Left , also commonly referred to as the Left Party , is a democratic socialist political party in Germany. The Left is the most left-wing party of the five represented in the Bundestag....

 (formerly the Party of Democratic Socialism), the Left Party of Sweden, the Socialist Party of Ireland and Sinn Féin
Sinn Féin
Sinn Féin is a left wing, Irish republican political party in Ireland. The name is Irish for "ourselves" or "we ourselves", although it is frequently mistranslated as "ourselves alone". Originating in the Sinn Féin organisation founded in 1905 by Arthur Griffith, it took its current form in 1970...

, The Respect Party of the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

, the Scottish Socialist Party
Scottish Socialist Party
The Scottish Socialist Party is a left-wing Scottish political party. Positioning itself significantly to the left of Scotland's centre-left parties, the SSP campaigns on a socialist economic platform and for Scottish independence....

, the Citizen and Republican Movement
Citizen and Republican Movement
The Citizen and Republican Movement is a political party in France. The party replaced, in 2002, the Citizens' Movement founded by Jean-Pierre Chevènement, who left the Socialist Party in 1993 due to his opposition to the Persian Gulf War and to the Maastricht Treaty...

 and the Communist Party
French Communist Party
The French Communist Party is a political party in France which advocates the principles of communism.Although its electoral support has declined in recent decades, the PCF retains a large membership, behind only that of the Union for a Popular Movement , and considerable influence in French...

 of France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

, the Green Party
Green Party (United States)
The Green Party of the United States is a nationally recognized political party which officially formed in 1991. It is a voluntary association of state green parties. Prior to national formation, many state affiliates had already formed and were recognized by other state parties...

 in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 and the United Left
United Left (Spain)
The United Left is a political coalition that was organized in 1986 bringing together several political organisations opposed to Spain joining NATO. It was formed by a number of groups of leftists, greens, left-wing socialists and republicans, but was dominated by the Communist Party of Spain...

 of Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...

 to name a few. The Labour Party of Norway followed the third way during prime minister Jens Stoltenberg
Jens Stoltenberg
is a Norwegian politician, leader of the Norwegian Labour Party and the current Prime Minister of Norway. Having assumed office on 17 October 2005, Stoltenberg previously served as Prime Minister from 2000 to 2001....

's first government (2000–2001) leading to a record low in the 2001 election with 24.3% of the popular votes. They were forced back to classical social-democratic way after winning the election of 2005 in a Red-Green Coalition with the Socialist Left party and Center Party (2005–present).

Charles Clarke
Charles Clarke
Charles Rodway Clarke is a British Labour Party politician, who was the Member of Parliament for Norwich South from 1997 until 2010, and served as Home Secretary from December 2004 until May 2006.-Early life:...

, a former UK home secretary and the first senior "Blairite" to attack UK Prime Minister Brown openly and in print, stated "We should discard the techniques of 'triangulation' and 'dividing lines' with the Conservatives, which lead to the not entirely unjustified charge that we simply follow proposals from the Conservatives or the right-wing media, to minimise differences and remove lines of attack against us."

Magnus Ryner (Professor in International Relations at Oxford Brookes University) has suggested the Third Way is one of the main factors behind the current recession.

See also

  • Argument to moderation
  • Centrism
    Centrism
    In politics, centrism is the ideal or the practice of promoting policies that lie different from the standard political left and political right. Most commonly, this is visualized as part of the one-dimensional political spectrum of left-right politics, with centrism landing in the middle between...

  • Centrist Party (United States)
  • Corporatism
    Corporatism
    Corporatism, also known as corporativism, is a system of economic, political, or social organization that involves association of the people of society into corporate groups, such as agricultural, business, ethnic, labor, military, patronage, or scientific affiliations, on the basis of common...

  • Corporate statism
    Corporate Statism
    Corporate statism or state corporatism is a political culture and a form of corporatism whose adherents hold that the corporate group is the basis of society and the state. The corporate group is typically comprised by political-economic power elites, for example those represented by the U.S....

  • Democratic Leadership Council
    Democratic Leadership Council
    The Democratic Leadership Council was a non-profit 501 corporation that, upon its formation, argued the United States Democratic Party should shift away from the leftward turn it took in the late 1960s, 1970s, and 1980s...

  • Democratic Party (United States)
    Democratic Party (United States)
    The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...

  • Distributism
    Distributism
    Distributism is a third-way economic philosophy formulated by such Catholic thinkers as G. K...

  • Neoliberalism
    Neoliberalism
    Neoliberalism is a market-driven approach to economic and social policy based on neoclassical theories of economics that emphasizes the efficiency of private enterprise, liberalized trade and relatively open markets, and therefore seeks to maximize the role of the private sector in determining the...

  • New Labour

  • Nordic model
    Nordic model
    The Nordic model refers to the economic and social models of the Nordic countries . This particular adaptation of the mixed market economy is characterised by "universalist" welfare states , which are aimed specifically at enhancing individual autonomy, ensuring the universal provision of basic human...

  • Radical middle
    Radical middle
    The terms radical center , radical middle or radical centrism describe a philosophy as well as an associated political movement and position on the political spectrum...

  • Social corporatism
    Social corporatism
    Social corporatism is a form of economic tripartite corporatism supported by social democratic political parties based upon "social partnership" between capital and labour interest groups as well as between the market economy and state regulation that is considered a compromise to regulate conflict...

  • Social Democracy
    Social democracy
    Social democracy is a political ideology of the center-left on the political spectrum. Social democracy is officially a form of evolutionary reformist socialism. It supports class collaboration as the course to achieve socialism...

  • Social Liberalism
    Social liberalism
    Social liberalism is the belief that liberalism should include social justice. It differs from classical liberalism in that it believes the legitimate role of the state includes addressing economic and social issues such as unemployment, health care, and education while simultaneously expanding...

  • Social market economy
    Social market economy
    The social market economy is the main economic model used in West Germany after World War II. It is based on the economic philosophy of Ordoliberalism from the Freiburg School...

  • Triangulation
    Triangulation (politics)
    Triangulation is the name given to the act of a political candidate presenting his or her ideology as being "above" and "between" the "left" and "right" sides of a traditional democratic "political spectrum". It involves adopting for oneself some of the ideas of one's political opponent...



External links


Criticism

  • New Way
    New way
    - Political ideology :*New Way - Voluntaryism , Anarcho-capitalism , Minarchism , Utilitarianism- Political parties :*New Way , a short-lived political faction in Israel in 2001...


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