Social Democracy and Economic Equality in the Asian Century

Abstract

This chapter argues that Western social democracy is facing a major challenge in attempting to reduce inequality because of a changing geo-economics that is resulting in a relative decline of the West. Given its geographic location, Australia is at the forefront of encountering such issues. Yet, Australian Labor, like many social democratic parties internationally, has often underestimated the challenges involved. In particular, information technology has facilitated phenomena such as offshoring for both unskilled and skilled workers and this tendency is likely to continue. If Australia, with its geographical proximity to Asia and resource rich economy, is feeling the challenge then that will be even more so for other Western social democracies. While the chapter predominantly focuses on Australian social democracy, international examples are given from other countries, including Britain, France, Chile and India. The international literature on globalisation and a changing geo-economics is also examined.