The global financial crisis of 2008 and subsequent recession have blown away many of the orthodoxies which have underpinned economic policy for far too long. The crisis provides an opportunity to create a new economic architecture that reconnects a strong, flexible economy to the living standards of all, not just to residents of the penthouse. It is essential that governments at Scottish, UK and European level grasp this opportunity. It is vital that wider civic Scotland and its communities are fully engaged in the formation of a new vision for collective prosperity in Scotland and across the UK.
The STUC’s Agenda for Rebuilding Collective Prosperity puts the interests of Scotland’s workers and workless people first. It is supported by three policy papers:
• Rebuilding collective prosperity
• The funding of public services in Scotland
• Improving Occupational Health in Scotland
The papers contain a range of recommendations in the areas of economic, industrial and social policy. Over the coming months STUC will add to this work, publishing further papers on the Scottish economy, workplace and public services. It will seek the involvement of Scotland’s civic institutions in commenting on the policy recommendations and contributing to the ongoing debate and engage with Scotland’s communities to ensure they are given a voice.
The STUC will work with civic Scotland to develop and promote policy around the following 7 priority areas.
1 Tackling poverty
Income inequality is widespread and continues to be the main cause of social breakdown. With an ageing population, now is the time to reinforce the social safety net to meet the challenges of the future. Fair pay, with a living wage for all should be the primary drivers for tackling poverty and fair levels of benefits are necessary to address rising wealth and income inequality.
2 Rewarding work and reducing economic insecurity
Scotland and the UK require a reinvigoration of the equalising institutions such as strong trade unions, redistributive taxation and higher minimum wages that in the past moderated the tendency of a laissez faire economy to produce an income distribution of extremes. Deregulation of labour and product markets cannot be reconciled with aspirations for broadly shared prosperity. An economy run for and by economic elites leaves society not just less equal and less democratic but also much more vulnerable to systemic shocks and risks and less efficient as a matter of economics. A healthy and secure workforce is the bedrock upon which a productive economy must be based.
3 Fair taxation
The current crisis provides an opportunity to address the complexity and manifest unfairness in the UK taxation framework. A fair and progressive tax system must be a key element of any viable attempt to address the massive inequality that persists in the UK and Scotland. The failure to collect a fair tax contribution from super-wealthy individuals and corporations is unsustainable if sufficient investment in public services is to be maintained.
4 A balanced industrial strategy
Manufacturing industry helps cement communities with middle income/middle status jobs and is therefore a force for social cohesion in a way that services are not. A new policy agenda, including a low carbon industrial strategy for Scotland, is required to sustain and grow manufacturing employment.
5 Excellent public services for all
A positive agenda to revitalise Scotland’s public services will be based on the principles of democracy, fairness, partnership, investment and excellence. Excellent public services are essential to secure sustained economic growth and equality of access to employment and economic opportunities; and to improve the quality of life of those unable to work. High quality, efficient and effective public services will best be achieved by well resourced, motivated, trained and rewarded staff. The community sector has an important role to play in delivering quality public services but the drift towards privatization and undemocratic “arms-length” provision must cease.
6 A fairer global economy
An alternative approach to globalisation and competitiveness will include policies to rebalance, to invest in new technologies that generate high-quality domestic manufacturing employment, and to promote environmental and labour market policies to ensure globalisation benefits working people in both developed and developing nations.
7 Equality of opportunity and fairer outcomes for all
Policies to ensure that Scotland’s core values of egalitarianism and collectivism are embedded in our economic and social model. Discrimination in the workplace and wider society continues to reduce opportunity and institutionalise income inequality. Each person, regardless of socio-economic class, gender, age, racial or religious background, sexual orientation or disability must be able to contribute to the nation’s economy and well-being and to prosper accordingly.
STUC April 2009