35th SSU Congress: Nobody does it better than the Swedes

Recently I attended the 35th SSU Congress in Sweden in my capacity as International Secretary of SDLP Youth. The theme for the conference was “En annan värld är möjlig!” or “another world is possible!” Over 400 delegates from Sweden and 100 international colleagues from all over the world were in attendance.

Although the SSU (Swedish Social Democratic Youth League) are one of the largest and strongest social democratic youth movements in Europe, both in terms of membership and finances, I was still extremely impressed at the sheer level of organisation within SSU and the overall high standard of the Congress itself.

During the Congress international guests had the opportunity to participate in a range of seminars and workshops.

On Sunday international guests arrived, with some coming as far as USA, Canada, South Africa and Mozambique. We participated in the opening of the Congress by Mona Sahlin, the leader of the Swedish Social Democratic Party (SAP), and Jytte Guteland, the Chairperson of the SSU. Both of their speeches were inspiring and motivational, setting a strong tone for the rest of the Congress.

On Monday we visited Bommersvik the spiritual home of SSU. Bommersvik is a farm and recreational retreat set deep in countryside south-west of Stockholm. It was bought by SSU during the 1950s and has since been converted into a conference centre with accommodation facilities to cater for SSU seminars and political get-togethers.

SSU rents out the conference and accomodation facilities and the acres of farmland are leashed to local farmers- with SSU using the generated income to support the work of their organisation. What amazed me was that SSU actually owned Bommersvik- it belonged to them. It was truly an inspiring place and a central asset to SSU- in real estate value alone Bommersvik must be worth at least over £1 million!! It reminded me somewhat of Superman’s Fortress of Solitude where he would go to reenergise, motivate and reinvent himself altogether.

It was this trip that made me fully realise the extent and calibre of SSU and just how well organised and resourced the organisation really are. It is this commitment to organisation that is the reason that social democrats win in Sweden almost at every election. And it is this dedication to organisation that has made SSU a strong social force not only in Sweden but internationally as well- with regular SSU-funded exchange programmes being organised between SSU branches and sister organisations in places such as Palestine and Lebanon.

In Bommersvik we discussed the Swedish Social Welfare Model with Anne-Marie Lindgren, the chief ideologue of the Swedish Social Democrats. Even with masters dissertation-level knowledge of the Scandinavian Social Model I still found this an informative discussion and it reinforced to me just how seriously the Swedes take social welfare. Social welfare policies are run-through everything in Sweden.

It is this discussion that reminded me of my initial thoughts upon arriving in Sweden. When I first arrived I noticed how expensive everything was- particularly the price of beer(!). The Swedish welfare system is reliant on tax. The purpose of high VAT levels on a beer, for example, and the highly-taxed cost of living is to subsidise the high levels and standard of social welfare provision that the country has come to expect.

In Sweden there may be a much higher level of taxation and a high cost of living- but this is off-set by higher wages, a higher standard of living, a social welfare system that is probably the strongest in Europe and poverty rates that are among the lowest in Europe.

On Tuesday we visited Stockholm and enjoyed a trip to the Swedish Parliament where we discussed the current domestic political situation. The conservative-led coalition currently in power in Sweden has performed very poorly in addressing the current economic crisis. Currently there is an unemployment problem, very rarely experienced by contemporary Swedes due to traditionally low unemployment rates, with many Swedes either currently unemployed or facing the grim prospect of future unemployment.

While the current unemployment rate of 9.8% may not seem that bad – comparatively to some us in countries experiencing much worse conditions - it does represent 460,000 people out of work from a population of about 8 million. This figure represents an increase in unemployment by nearly 50% since this time last year (6.0%). It is certainly a crisis- but the situation would be much worse in the absence of such a strong social welfare model.

Youth unemployment is currently a major problem, just like it is all over Europe, with 29% of 15-24 year olds out of work currently. Sweden however does distinguish itself in that unemployment among young Swedish people in relation to unemployment among those aged 25-74 was the highest in the EU in 2008. This situation has led to a SSU campaign against the current Swedish Conservative Prime Minister Fredrik Reinfeldt. The campaign “gör Fredrik Reinfeldt arbetslös innan du är” means “make Reinfeldt unemployed before you are”.

On Wednesday we met Jan O Karlsson, a former Deputy Minister for Foreign Affairs, and discussed Swedish Foreign Policy and neutrality with him.

During the Congress I had the unique opportunity to hold talks with delegates from Iraq and the Fatah Youth movement in Palestine to discuss the respective conflict situations. It was a tremendous personal honour to meet with social democratic colleagues from Iraq and Palestine and to have the opportunity to discuss with them areas of mutual learning and cooperation in conflict resolution and peace-building.

We as socialists and social democrats want to help build a better world- a world that is free from conflict. “Another world is possible” but for that to happen we socialists and social democrats must work together, and stand together in solidarity, and stay true to our ideals of social justice, peace and democracy.

The SSU Congress was a great experience and it was such a real pleasure to meet so many interesting and nice people from all over the world. The fact that the Congress was such a success is truly a testament to SSU and can be put down to the hard work of those involved in the organisation. A special thanks to Magnus Manhammar the SSU International Secretary, Isabel Lundin the SSU ECOSY Bureau Member and all the SSU volunteers Assa, Niclas, Emile, Ahmed, Darina and Calle for their good humour and fantastic hospitality.

Stormont to take on Interns?

Yesterday's news carried a rather interesting development for local graduates. Northern Ireland's Minister for Employment and Learning Sir Reg Empey argued that government departments here should consider establishing internship schemes to help tackle, what is for me, a crisis level of unemployment in young graduates.

Sir Reg admits that with finances already stretched his department alone may only be able to fund only 10 such internships. Put that across all the other departments and that is a potential 110 internship vacancies to be created, potentially speaking of course. The success of such a scheme will depend on gaining cross-party support and getting other departments to commit themselves to participating in such a scheme.

I can't see any political hurdles for such a plan but there certainly may be financial obstacles. With various departmental budgets already under serious pressure will Sir Reg be able to even guarantee a minimum of 10 internship positions per department? And more importantly, will those departments that do participate in such a scheme be prepared to ensure that future recipients of such internship positions are paid a living wage?

Frankly, these proposals are a case of “too little, too late” and the creation of a potential 110 internship positions will be cosmetic and, in practice, will represent a drop in the ocean in terms of tackling current levels of graduate unemployment. The economic crisis has been in full flow for well over a year now, with unemployment figures steadily rising over this period, and the Department for Employment and Learning (DEL) have been remarkably slow to react.

A “keep-the-fingers-crossed” mentality and an inability to plan ahead, by addressing what was clearly a foreseeable situation, has meant that DEL have presided over a labour market that is allowing the hopes of a generation of young people go down the plug-hole. Sir Reg is not responsible for the current economic crisis but he is culpable for its negative local impact- through his department’s inaction to address some of the local symptoms of the wider economic malaise.

International Labour Day

On Saturday I had the pleasure of attending the annual Irish Congress of Trade Unions May Day Parade in Belfast to coincide with International Labour Day. The worsening economic crisis has meant that this year the mood of participants was particularly determined, resolute and with much more impetus.

At this time of economic crisis, when people are losing their jobs and employment protections are being rolled back, it is important that workers stand together in solidarity in the face of depreciating socio-economic conditions.

The local impacts of the economic crisis are now beginning to be revealed- with workers and small businesses across Europe finding themselves at the mercy of the failing economic markets.

In this climate of uncertainty it is vital that political parties work together to meet the economic challenges that people are facing in their everyday lives.

Currently the DUP/Sinn Fein regime is failing people and failing to meet the challenges laid down by this crisis. There can be no room for policy inertia- the DUP and Sinn Fein must set aside petty political positioning and start delivering for workers.

But these tough times must also be met with progressive policies- not the tired, old economic philosophy that has been responsible for this crisis and the same that was behind the failed DUP/Sinn Fein budget.

This destructive economic philosophy is failing people right across Europe and it is obvious that now is the time for new leadership.

Our current European representatives are failing us all. We haven't seen or heard from them for 5 years and now they have the bare faced cheek to ask for our support. People deserve better.

That is why in June’s European elections it is vital that the SDLP is returned with a strong mandate to the European Parliament.

Only by supporting candidates such as Alban Maginness can we have positive change for Europe- he is committed to creating a more Social Europe that puts people first.

European Social Model 2009

Regulatory competition, EU enlargement and economic globalisation, have all placed considerable pressures on the European Social Model. These pressures have been exacerbated by the recent financial crisis- with rising levels of public debt and decreasing levels of public expenditure across EU members states compounded by the collapse of currencies and banking systems across the globe.

In light of these pressures and with many EU states now clearly failing to meet the Lisbon Strategy’s targets it is imperative that the European Social Model is reformed.

The objectives of the Lisbon Agenda have shaped recent debates within the EU that stress the importance of competitiveness and innovation of the EU economy as a whole. But these objectives have been considerably undermined, and essentially made redundant, due to the impact of the recent financial crisis and the subsequent shift in priorities of European governments.

Much work needs to be done to reform pension provision, tackle unemployment and protect workers rights, integrate women better into the workforce, to raise secondary level educational participation, promote life long learning and reduce EU poverty in order to build the competitive knowledge based economy that Lisbon envisaged.

The current socio-economic challenges that face Europe and its people can not be addressed by states alone and must be addressed collectively as a regional project. The recent financial crisis has exposed the folly of standing alone in a globalised world- just look at what happened to Iceland who are now crying out for the security of EU membership. These news challenges are macro-economic, and micro-economic, there are external, and internal.

The European Social Model aspires to a certain type of society, a knowledge based society that is entrenched in the Social Europe Agenda. But to meet these challenges the European Social Model must reform and redefine itself in a Europe that is increasingly under pressure from the outside and within.

One notable aspect of the economic crisis is that it has highlighted that European-level regulation is as important as ever. EU regulations must now be used to foster solidarity and cooperation between EU member states at this time of crisis. Only through cooperation and solidarity can Europe survive this financial quagmire, we can not stand alone.

This solidarity can be achieved by the promotion of regulations to address the renewal of the European Social Model. The decision last December by the EU Parliament to revise and address the opt-out clauses of the EU Working Time Directive is one positive example of this.

Reform of the European Social Model must tackle issues of job quality; skills, life-long learning and career development; gender equality; health and safety at work; flexibility and security; inclusion and access to the labour market; work organisation and work-life balance; social dialogue and worker involvement; diversity and non-discrimination and finally overall economic performance and productivity.

The need to reform the ESM is apparent. In key areas EU member states are falling behind non-EU states such as Norway, Switzerland and the US, particularly in respect to Research & Development.

Reform of the European Social Model must not negate the Social Europe Agenda but must reaffirm this agenda through a process of competitive solidarity. It is important that the economic crisis is not used as an excuse to dilute social standards. Strong social standards are an important tool in fighting poverty and social exclusion- necessary ingredients for addressing the current economic malaise.

Tackling the Economic Crisis

Yesterday I took part in an interesting public debate in Dublin regarding the economic crisis and how it can be solved http://www.labour.ie/youth/. I participated in a panel discussion alongside representatives from Irish Labour Youth, Socialist Youth and Young Greens.

This post provides an outline of my position on the economic crisis and the issues that I raised during the debate...

The global economic system is always in crisis. It is nothing new. As long as there is poverty and social exclusion in the world then the economic system is failing. So what makes this current economic crisis exceptional? With the onset of globalisation this is the first real economic crisis that has affected the entire international community.

Economic pressures in the US have been massively exacerbated and exported to the rest of the world by the process of financial globalisation and the increasing integration of economic markets. What makes this crisis unprecedented is that it is truely global.

The current pressures on the economic system first presented itself with the rising price of oil and the subsequent inflation in the cost of living- with increased food prices in particular. Oil price increases have meant that farmers have to spend more on fuel for their tractors/machinery and this increase in production cost has been passed on to consumers with rising food prices a direct consequence.

The increasing cost of living was then compounded by the mortgage crisis that hit the US economy last year. The collapse of mortgage giants Freddie Mac and Fanny Mae came as a direct response to irresponsible and risky lending.

People who clearly could not afford mortgages for particular properties were given mortgages. When many of these people defaulted on their mortgage repayments or failed to afford the repayments then the whole system began to crumble.

The spectacular collapse of the mortgage system in the US rolled out into the global banking sector where many banks had bought mortgages during the good times and were now left with substantially toxic mortgage assets.

The collapse of banks such as Lehman Brothers, Northern Rock, and the Presbyterian Mutual Society here in the north, came as a direct response to banks having toxic mortgage assets. When banks struggled to sell these toxic assets from their books this impacted on their own finances and affected their abilities to lend to each other. Banks became cautious and did not want to particpate in any lending that had any element of risk attached.

With this mortgage crisis now in full flow, ordinary people are stuggling to buy and sell homes and young people in particular can not get their first step onto the property ladder- this has led to a crisis in the housing sector. With the collapse of some pension schemes people's key source of economic security was their homes and the rising values of their property.

With the bursting of the housing bubble- now they don't even have that.

With internal pressures within the banking system banks are tightening their belts and restricting loan facilities - not just between the banks themselves - but also between the banks and their customers. This has created a lending crisis for small-medium business- as many in this sector need these loans to support them during this difficult financial situtation. For individuals there is now no easy credit to make up for pressures on wages.

Here in the north the construction industry has been hit hard by the housing crisis. With a shortage in demand for new builds building firms have had to lay off staff. By October 2008 there had been 8,000 jobs lost in the norths construction industry. This figure has undoubtedly risen since then and will continue to rise with an estimated 20,000 due to be out of work by the end of 2009.

Unemployment is at 4.2% (October 200*) and this figure is rising at an alarming rate. Youth unemployment is increasing due to people living longer and retirement age increases - with older people staying in employment for longer - and nowhere near enough job creation at the other end of the spectrum.

With a shortage of new jobs being created many young people are having to do precarious work in order to get their first steps on the employment ladder. Many young graduates are having to work in non-degree related jobs in order to make ends meet. Often this work is low-paid, low-skill work with few employment rights, with many finding themselves with no other option but to work in the 'temping' sector where, under current labour market laws, they are routinely exploited.

The financial crisis must not be used as an excuse to dilute employment and therefore social standards. The increase in short-term contracts, agency work and sub-contracting has created a race to the bottom in social standards. This has denied many people, particularly young people, many employment rights and protections.

Those jobs that have been created have tended to be in the retail sector with the likes of Tesco and Lidl. Most of these jobs are low-skill, low-wage jobs and can not necessarily be described as 'new jobs'- as many of the vacances are filled by workers who have already lost jobs elsewhere - from the construction sector but mainly from elsewhere in the retail sector. There must be healthy competition on the high street to prevent this.

The increasing market dominance of large, stack-em-high-sell-em-cheap retailers is unhealthy. The collapse of retailers such as Zavvi and Woolworths and the collapse of the small to medium business sector has only added to the dominance of the likes of Tesco, giving them more of a monoply over the market (Tescopoly).

All this time, and with constant pressure on public finances, there remains a challenge to maintain existing levels of public expenditure and maintain service provision within healthcare, education and social security. The financial crisis must not be used as an excuse to cut public spending.

With existing levels of competition between states, or international regulatory competition, now being exacerbated by this globalised economic crisis- it is an increasing challenge for states to reconcile the need to increase social standards with the need to remain competitive and productive. Improving social standards will help tackle poverty and social exlusion and this will help create the necessary conditions for a competitive, knowledge-based economy firmly rooted in the Lisbon Strategy for Growth and Jobs.

A classic example of this competition presenting itself in Ireland is the recent decision by Dell to 'pick up sticks' and move its operation in Limerick to Poland- at the cost of hundreds of jobs in Limerick. Poland offers Dell the chance to reduce their labour and corporation tax costs- which Dell would see as necessary to compete in the pressurised economic climate. This is the reality of the localised and very real impacts of this crisis.

Ireland's over-reliance on international corporations (which have no local ties or loyalty) and foreign direct investment has come home to roost. If anything the economic crisis has taught us that here we rely too much on international corporations and we do not support local business enough.

There are however some reasons to remain optomistic. The credit crunch does present us with some really positive opportunities.

We can improve North-South cooperation to tackle the financial impacts on the island. The benefits of North-South cooperation were all too apparent in the successful resolution of the recent dioxic contamination in pig meat. This was a financial issue that threatened the future of the agricultural industry here and it was also an all-ireland issue as it affected the industry both north and south. The successful resolution of this crisis showed how all-ireland approaches to financial issues can work for mutual benefit.

The falling or deflation of the UK's currency has also allowed producers and business here to benefit. The lower value of sterling has meant that it is cheaper for the Republic / Euro-zone and other economies to import our products. This has helped to support local business but this must be capitalised upon by the likes of Invest NI. Cheaper imports from NI has also helped the Republic and other Euro-zone cut their business costs.

The economic crisis also presents an opportunity for a change of culture in financial institutions and in citizens. This can mean more responsible lending, cuts in city/bank bonuses, an end to rampant and irresponsible pursuit of profit; a change of direction in how we consume and how we as citizens approach issues such as personal debt. Afterall we have become generation-debt.

Value for money from politicans can present a positive symbolic signal to citizens. The recent moves by the Irish Parliament to cut representatives wages is something that must be positively acknowledged.

So how can we solve this crisis? Can we can truely solve a perpetually anarchic and volatile system that has proven itself time and time again to fall into crisis and then relauch itself?

I believe that traditionally recessions tend to last for years and realistically we can only hope to alleviate some of the impacts of this current crisis on the lives of people. The crisis cannot be solved overnight.

Here are a few positive steps that I believe can help soften the impact of the financial crisis:

Let's introduce the Euro in the UK; support the banks when needed in return for more democratic control over them; promote all-ireland infrastructure projects and other public work programmes that help get construction workers back to work; support small to medium enterprises and reduce our reliance on foreign direct investment; support moves to increase financial regulatory powers of international institutions- we live in a globalised world and can not stand alone during this crisis; invest in the green economy; resist privatisation and support employment by building strong social partnership- stronger unions means stronger employment rights that tackle poverty and maginalisation; finance social support measures and give redundant and unemployed workers a strong safety net- there can be no flexicurity/flexibility in labour markets (use of agencies, etc) without proper social security; develop progressive taxation measures; and develop the skills base in our workforce- let's give our workers a chance and make them more competitive within the internationalised labour market.