British and European influences on the "Australian Way" from the 1980s

Commonwealth countries share their British social policy legacy in a variety of ways. Autstralia attempted to adopt the postwar new Fabian welfare state model at the very time when international economic circumstances undermined its Keynesian foundation. With Labor governments in power from 1983 to 1996, Australia diverged significantly from the neo-liberal reform path adopted in the United Kingdom. Australian governments looked increasingly to European social democracies for alternative social policy model In a manner anticipating the Third Way. the tendency was towards mixing neo-liberal economics with social democratic welfare. The Australian Third Way which resulted proved unstable. Current social reformers, the paper proposes, ought to revisit a neglected but characteristically British emphasis on the need for a measure of socialization of investment to underpin redistributive strategies.