Prosperity and Fairness? Can New Labour Bring Fairness to the 21st Century by Following the Dictates of Endogenous Growth?

Abstract

By the late 1980s changes in the British and global political, social and economic situation necessitated a major rethink of the Labour party's policy approach. This rethink began with the 1987 Policy Reviews and continues to develop under the leadership of Tony Blair and Gordon Brown. In contrast to many critics of New Labour's economic and social reforms this article argues that the party is not acting on simple pragmatic grounds, nor are they simply a ‘kinder’ neo-liberal party. Rather, it is argued that there is a clear coherence to New Labour's governing approach and that this is itself guided by the leadership's understanding of endogenous growth theory. The long-term goal is that by adopting an endogenous growth strategy the government will be able to reinstitute an activist policy regime capable of promoting the party's traditional values of equality, justice and fairness within a socioeconomic policy designed to ensure long-term growth and prosperity.