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NEW MODEL OF SOCIETY TO BE BUILT IN THE FUTURE
Fernando Alcoforado*
This article aims to formulate a new model of society as an alternative to socialism
implanted in the twentieth century in several countries and neoliberal capitalism that
prevails in the world today. The failure of socialism in its various forms and of
neoliberal capitalism puts on the agenda the need to build a new model of society in all
countries of the world. The failure of socialism has been configured with the demise of
the Soviet Union and the socialist countries of Eastern Europe. The failure of neoliberal
capitalism is configured with the occurrence of the global crisis of 2008 that outbreak in
the United States in the mortgage lending sector that immediately spread to other parts
of the world financial system, with a rapidity and amplitude that surprised the market.
The old socialist project as it was built in the Soviet Union and other countries turned
into state capitalism, with political power exercised in a manner despotic and corrupt of
a new type of bourgeois (bourgeois of state or Nomenclature). The proletariat, on behalf
of which the socialist revolution was carried out not exercised the power and the
population did not participate in the decisions of government. The real socialism came
to an end and there was no popular reaction to fight in its defense and to keep it in
power that is the demonstration of the immense frustration of the people by not meeting
their expectations. From the 1990s, the Marxist left who was born in 1848 and came to
power in several countries has lost its way.
The loss of direction of the Marxist left has happened, not only because of the lack of an
alternative project to the one implemented in the Soviet Union and other countries, but
also by the offensive of the conservative forces of the United Kingdom and the United
States under Margaret Thatcher's leadership and Ronald Reagan that brought forward
the neoliberal counterrevolution whose economic doctrine advocates the absolute
freedom of the market and a restriction on state intervention in the economy, this should
only occur in essential sectors and still a minimum degree. To the Old Left of Marxist
base were left with no alternative but to participation in parliamentary elections
defending liberal and even neoliberal theses, and abdicating the social revolution that
has always been the major motivation of its political action in the past. The loss of
direction also happened to the social democratic parties in several countries such as
Spain, France, Portugal, Greece and others that were not able to meet the social
demands to reach power through elections.
In many countries, including Brazil with Fernando Henrique Cardoso, Lula and Dilma
Rousseff governments, social democratic and of the Marxist left parties came to power
in the state with the adoption of neoliberal recipe. What is observed in practice is the
adoption today by leftist governments, with few exceptions, of neoliberal capitalist
theses by granting broad largesse to the ruling classes, especially the financial sector,
and "alms" to poor people, to counteract social upheavals as currently occurs in Brazil
with the income transfer program "Bolsa Familia". This is why there is the belief in
broad sectors of society that today there is no difference between right and left, feeding
the thesis of the end of ideology.
The failure of neoliberal capitalism is configured with the occurrence of the global crisis
of 2008 that erupted in the United States and spread to other parts of the world financial
system, with a rapidity and amplitude that surprised the market. Large Western banks
threw the world into a recession. The losses have reached US$ 1 trillion. The Bank of
2
England said that the losses of the banks that had to adjust their investments to market
prices are US$ 3 trillion, equivalent to about a year of economic output in the UK. The
Asian Development Bank estimated that financial assets worldwide could have suffered
a drop of more than US$ 50 trillion - equivalent number of annual global production.
The financial system is embittering losses on a scale that no one ever predicted. The
neoliberal model that ruled the world in the last 40 years died and there will be
depression that will last many years.
Writing in the British newspaper The Guardian on 16/04/2009, under the title
Pressupostos teóricos da "economia mista" (Theoretical assumptions of the "mixed
economy"), Eric Hobsbawm states that we know two practical attempts to realize both
systems, socialist and neoliberal, in its pure form: for First, the economies of state
planning, centralized, Soviet-type; on the other, the capitalist free market economy free
from any restriction and control. The first came down in the 1980s and with them the
European communist political systems; the second is breaking down before our eyes in
the greater crisis of global capitalism occurred in 2008.
Hobsbawm said he did not know the severity and duration of the current crisis that
erupted in the United States, but no doubt it will mark the end of the sort of free-market
capitalism started with Margaret Thatcher and Ronald Reagan. Hobsbawm also says
that impotence threatens both those who believe in a capitalist market, pure and without
State interference, a sort of bourgeois anarchism, and those who believe in a planned
socialism uncontaminated and the search for profits. Both are broken. The future, like
the present and the past, belongs to mixed economies in which public and private are
mutually linked in one way or another. This means that the Social Democracy with the
State of Social Welfare, which incorporates elements of both socialism and capitalism,
the most successful system already deployed in the world, especially in Scandinavian
countries, may prevail in the future after the "tsunami" neoliberal that overwhelms the
planet we live on.
It appears, therefore, that socialism and neoliberalism have failed in building an
economic society, socially and politically viable in countries around the world leaving
behind the barbarism that characterizes the world we live in. To end the barbarism,
promote economic and social progress and establish a civilized coexistence among all
human beings urge the building of a new model of society. By analyzing the model of
social democracy implanted in the world, it appears that in Scandinavia where there was
the most successful among them all despite the need for improvements that it will be
presented in the conclusions of this article.
The Nordic model or Scandinavian social democracy could best be described as a sort
of middle ground between capitalism and socialism. It is neither fully capitalist nor fully
socialist, and the attempt to fuse the most desirable elements of both into a system
"hybrid". In 2013, The Economist magazine stated that the Nordic countries are
probably the best governed of the world. The UN World Happiness Report 2013 shows
that the happiest nations are concentrated in northern Europe, with Denmark at the top
of the list. The Norse have the highest rating in real GDP per capita, the highest healthy
life expectancy, greater freedom to make choices in life and greater generosity.
Among the Scandinavian or Nordic countries, Norway is the most prosperous in the
world, with the State of Social Welfare characterized by too much equality and too
much social justice. In Norway, there thrives inequality, selfishness and individualism
that characterize liberalism and neoliberalism. 100 years ago, Norway became the
3
condition of one of the poorest countries in Europe, living with ice and darkness in the
middle of the year to be synonymous with wealth and social justice with a GDP per
capita of US$ 100,000. Norway gives priority to spending on education that is
guaranteed for the entire population. In 30 years, the Norwegians have reduced their
working hours to 270 hours, earning more than ten days of vacation per year, and a
significant part of the workforce is already able to work only four days a week.
According to the UN, a society never reached level of human development equal to that
of Oslo, capital of Norway [See the text Noruega, um paraíso com muito Estado Social,
serviços públicos e impostos (Norway, a paradise with very welfare state, public services
and taxes) on the website <http://blogdotarso.com/2014/04/13/noruega-um-paraiso-
com-muito-estado-social-servicos-publicos-e-impostos/>].
Even in an age of austerity and global crisis like the current one, the State System of
Social Welfare in Norway remains intact. In Norway, trade unions negotiate their
salaries each year depending on the needs of the export sector and to ensure that
domestic products remain competitive in the global market. In Norwegian elections
political parties promise not to cut taxes. In the State of Social Welfare Norwegian men
take care of their babies and each year the government allocates 2.8% of GDP to
support families everything they need to have children. Parents who decide not to take
the kids to daycare centers receive, every month, a check for US$ 200 to help in
spending. There the citizens who receive social benefits from the state are not called
bums. It is a legitimate right.
Norway license maternity is 9 months for the mother and four months for fathers. In
these months whom pay the wages of the parents is the state. The government estimates
that these incentives for women and laws to ensure gender equality are positive for the
economy. Companies are required to give 40% of seats for women on their boards. 75%
of women work out and for the government that is more activity in the economy and a
greater number of people paying taxes. In Norway the income tax reaches 42% being
higher than in Brazil. There is consensus that the value is fair to maintain the system.
The state pays from the nursery to the funeral, finance students and takes to the people
vacation spending. The Norwegian model of society is the minimum expected for a just
society. The rest is barbarism.
For these reasons, Scandinavia is the home of more egalitarian model that humanity has
ever known. It dates back to Sweden in the 1930s, more precisely 80 years ago, when it
concretized the social democratic hegemony in the Nordic country's government, setting
off a series of social and economic reforms that would inaugurate a new kind of
capitalism, as opposed to liberalism of the previous decades whose final act was the
crisis of 1929. Then was born the so-called Scandinavian model, which quickly goes
beyond the Swedish borders to become influential in northern Europe, but also an
important reference in formulating heterodox economic policies (progressive)
throughout the planet. The success of that model is due to the combination of a large
State of Social Welfare with strict regulatory mechanisms of market forces, able to put
the economy on a dynamic path, while that reached the best social welfare indicators
among capitalist countries.
Social democracy especially implanted in the Scandinavian countries which proved to
be a successful alternative to the course of history could serve as a basis for building a
new social model for all countries of the world. Despite the success of Scandinavian
social democracy, the new model of society to build in the world should result in the
4
improvement of what is called Nordic or Scandinavian social democracy practiced in
Denmark, Norway, Sweden and Finland. Despite their differences, they all share some
common traits: State of Social Welfare Universalist that is geared to enhance individual
autonomy, promoting social mobility and ensuring universal provision of basic human
rights and stabilizing the economy. It is distinguished also by its emphasis on the
participation of the workforce, promoting gender equality, reducing social inequality,
extensive levels of benefits to the population and large scale redistribution of wealth
[See Modelo nórdico (The Nordic model) text published on the website <http:
//pt.m.wikipedia.org/wiki/Modelo_n%C3%B3rdico>].
It was social democracy built to date, especially in Scandinavian countries, the only
model of society that allowed economic, social and political advances concurrent with
the state acting as a mediator of conflicts between the interests of capital and civil
society. It is no accident that the Scandinavian countries, besides having great economic
and social achievements, are leaders in HDI (Human Development Index) in the world.
In contrast, liberalism and neoliberalism where the State is always at the service of
capital and civil society is marginalized, and of socialism where the state is at the
service of a party or group in power and civil society is also marginalized, social
democracy of the Scandinavian countries avoided the occurrence of excesses of
liberalism, socialism and neoliberalism.
Despite the great success of social democracy practiced in Scandinavia, the social
democracy of the future should result from the improvement of the current model that
would operate with a structured tripod based on a neutral State, civil society
organizations active and productive sector (state and private) efficient effective. The
neutral state would seek to reconcile the interests of the Productive Sector (state and
private) with Civil Society mediating their conflicts in several instances of the executive
and legislative powers that, when not achieved consensus, the final decision would be
up to the population to decide democratically through a plebiscite and / or referendum.
In the new social democracy, should not be allowed to share the monopoly groups and
private cartels in the economy. Private companies would act only in economic sectors
where there is competition. State or mixed enterprises occupy the economic sectors
where it was not possible to have competition.

Fernando Alcoforado, member of the Bahia Academy of Education, engineer and doctor of Territorial
Planning and Regional Development from the University of Barcelona, a university professor and
consultant in strategic planning, business planning, regional planning and planning of energy systems, is
the author of Globalização (Editora Nobel, São Paulo, 1997), De Collor a FHC- O Brasil e a Nova
(Des)ordem Mundial (Editora Nobel, São Paulo, 1998), Um Projeto para o Brasil (Editora Nobel, São
Paulo, 2000), Os condicionantes do desenvolvimento do Estado da Bahia (Tese de doutorado.
Universidade de Barcelona, http://www.tesisenred.net/handle/10803/1944, 2003), Globalização e
Desenvolvimento (Editora Nobel, São Paulo, 2006), Bahia- Desenvolvimento do Século XVI ao Século XX
e Objetivos Estratégicos na Era Contemporânea (EGBA, Salvador, 2008), The Necessary Conditions of
the Economic and Social Development-The Case of the State of Bahia (VDM Verlag Dr. Muller
Aktiengesellschaft & Co. KG, Saarbrücken, Germany, 2010), Aquecimento Global e Catástrofe
Planetária (P&A Gráfica e Editora, Salvador, 2010), Amazônia Sustentável- Para o progresso do Brasil e
combate ao aquecimento global (Viena- Editora e Gráfica, Santa Cruz do Rio Pardo, São Paulo, 2011),
Os Fatores Condicionantes do Desenvolvimento Econômico e Social (Editora CRV, Curitiba, 2012) and
Energia no Mundo e no Brasil- Energia e Mudança Climática Catastrófica no Século XXI (Editora CRV,
Curitiba, 2015).

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New model of society to be built in the future

  • 1. 1 NEW MODEL OF SOCIETY TO BE BUILT IN THE FUTURE Fernando Alcoforado* This article aims to formulate a new model of society as an alternative to socialism implanted in the twentieth century in several countries and neoliberal capitalism that prevails in the world today. The failure of socialism in its various forms and of neoliberal capitalism puts on the agenda the need to build a new model of society in all countries of the world. The failure of socialism has been configured with the demise of the Soviet Union and the socialist countries of Eastern Europe. The failure of neoliberal capitalism is configured with the occurrence of the global crisis of 2008 that outbreak in the United States in the mortgage lending sector that immediately spread to other parts of the world financial system, with a rapidity and amplitude that surprised the market. The old socialist project as it was built in the Soviet Union and other countries turned into state capitalism, with political power exercised in a manner despotic and corrupt of a new type of bourgeois (bourgeois of state or Nomenclature). The proletariat, on behalf of which the socialist revolution was carried out not exercised the power and the population did not participate in the decisions of government. The real socialism came to an end and there was no popular reaction to fight in its defense and to keep it in power that is the demonstration of the immense frustration of the people by not meeting their expectations. From the 1990s, the Marxist left who was born in 1848 and came to power in several countries has lost its way. The loss of direction of the Marxist left has happened, not only because of the lack of an alternative project to the one implemented in the Soviet Union and other countries, but also by the offensive of the conservative forces of the United Kingdom and the United States under Margaret Thatcher's leadership and Ronald Reagan that brought forward the neoliberal counterrevolution whose economic doctrine advocates the absolute freedom of the market and a restriction on state intervention in the economy, this should only occur in essential sectors and still a minimum degree. To the Old Left of Marxist base were left with no alternative but to participation in parliamentary elections defending liberal and even neoliberal theses, and abdicating the social revolution that has always been the major motivation of its political action in the past. The loss of direction also happened to the social democratic parties in several countries such as Spain, France, Portugal, Greece and others that were not able to meet the social demands to reach power through elections. In many countries, including Brazil with Fernando Henrique Cardoso, Lula and Dilma Rousseff governments, social democratic and of the Marxist left parties came to power in the state with the adoption of neoliberal recipe. What is observed in practice is the adoption today by leftist governments, with few exceptions, of neoliberal capitalist theses by granting broad largesse to the ruling classes, especially the financial sector, and "alms" to poor people, to counteract social upheavals as currently occurs in Brazil with the income transfer program "Bolsa Familia". This is why there is the belief in broad sectors of society that today there is no difference between right and left, feeding the thesis of the end of ideology. The failure of neoliberal capitalism is configured with the occurrence of the global crisis of 2008 that erupted in the United States and spread to other parts of the world financial system, with a rapidity and amplitude that surprised the market. Large Western banks threw the world into a recession. The losses have reached US$ 1 trillion. The Bank of
  • 2. 2 England said that the losses of the banks that had to adjust their investments to market prices are US$ 3 trillion, equivalent to about a year of economic output in the UK. The Asian Development Bank estimated that financial assets worldwide could have suffered a drop of more than US$ 50 trillion - equivalent number of annual global production. The financial system is embittering losses on a scale that no one ever predicted. The neoliberal model that ruled the world in the last 40 years died and there will be depression that will last many years. Writing in the British newspaper The Guardian on 16/04/2009, under the title Pressupostos teóricos da "economia mista" (Theoretical assumptions of the "mixed economy"), Eric Hobsbawm states that we know two practical attempts to realize both systems, socialist and neoliberal, in its pure form: for First, the economies of state planning, centralized, Soviet-type; on the other, the capitalist free market economy free from any restriction and control. The first came down in the 1980s and with them the European communist political systems; the second is breaking down before our eyes in the greater crisis of global capitalism occurred in 2008. Hobsbawm said he did not know the severity and duration of the current crisis that erupted in the United States, but no doubt it will mark the end of the sort of free-market capitalism started with Margaret Thatcher and Ronald Reagan. Hobsbawm also says that impotence threatens both those who believe in a capitalist market, pure and without State interference, a sort of bourgeois anarchism, and those who believe in a planned socialism uncontaminated and the search for profits. Both are broken. The future, like the present and the past, belongs to mixed economies in which public and private are mutually linked in one way or another. This means that the Social Democracy with the State of Social Welfare, which incorporates elements of both socialism and capitalism, the most successful system already deployed in the world, especially in Scandinavian countries, may prevail in the future after the "tsunami" neoliberal that overwhelms the planet we live on. It appears, therefore, that socialism and neoliberalism have failed in building an economic society, socially and politically viable in countries around the world leaving behind the barbarism that characterizes the world we live in. To end the barbarism, promote economic and social progress and establish a civilized coexistence among all human beings urge the building of a new model of society. By analyzing the model of social democracy implanted in the world, it appears that in Scandinavia where there was the most successful among them all despite the need for improvements that it will be presented in the conclusions of this article. The Nordic model or Scandinavian social democracy could best be described as a sort of middle ground between capitalism and socialism. It is neither fully capitalist nor fully socialist, and the attempt to fuse the most desirable elements of both into a system "hybrid". In 2013, The Economist magazine stated that the Nordic countries are probably the best governed of the world. The UN World Happiness Report 2013 shows that the happiest nations are concentrated in northern Europe, with Denmark at the top of the list. The Norse have the highest rating in real GDP per capita, the highest healthy life expectancy, greater freedom to make choices in life and greater generosity. Among the Scandinavian or Nordic countries, Norway is the most prosperous in the world, with the State of Social Welfare characterized by too much equality and too much social justice. In Norway, there thrives inequality, selfishness and individualism that characterize liberalism and neoliberalism. 100 years ago, Norway became the
  • 3. 3 condition of one of the poorest countries in Europe, living with ice and darkness in the middle of the year to be synonymous with wealth and social justice with a GDP per capita of US$ 100,000. Norway gives priority to spending on education that is guaranteed for the entire population. In 30 years, the Norwegians have reduced their working hours to 270 hours, earning more than ten days of vacation per year, and a significant part of the workforce is already able to work only four days a week. According to the UN, a society never reached level of human development equal to that of Oslo, capital of Norway [See the text Noruega, um paraíso com muito Estado Social, serviços públicos e impostos (Norway, a paradise with very welfare state, public services and taxes) on the website <http://blogdotarso.com/2014/04/13/noruega-um-paraiso- com-muito-estado-social-servicos-publicos-e-impostos/>]. Even in an age of austerity and global crisis like the current one, the State System of Social Welfare in Norway remains intact. In Norway, trade unions negotiate their salaries each year depending on the needs of the export sector and to ensure that domestic products remain competitive in the global market. In Norwegian elections political parties promise not to cut taxes. In the State of Social Welfare Norwegian men take care of their babies and each year the government allocates 2.8% of GDP to support families everything they need to have children. Parents who decide not to take the kids to daycare centers receive, every month, a check for US$ 200 to help in spending. There the citizens who receive social benefits from the state are not called bums. It is a legitimate right. Norway license maternity is 9 months for the mother and four months for fathers. In these months whom pay the wages of the parents is the state. The government estimates that these incentives for women and laws to ensure gender equality are positive for the economy. Companies are required to give 40% of seats for women on their boards. 75% of women work out and for the government that is more activity in the economy and a greater number of people paying taxes. In Norway the income tax reaches 42% being higher than in Brazil. There is consensus that the value is fair to maintain the system. The state pays from the nursery to the funeral, finance students and takes to the people vacation spending. The Norwegian model of society is the minimum expected for a just society. The rest is barbarism. For these reasons, Scandinavia is the home of more egalitarian model that humanity has ever known. It dates back to Sweden in the 1930s, more precisely 80 years ago, when it concretized the social democratic hegemony in the Nordic country's government, setting off a series of social and economic reforms that would inaugurate a new kind of capitalism, as opposed to liberalism of the previous decades whose final act was the crisis of 1929. Then was born the so-called Scandinavian model, which quickly goes beyond the Swedish borders to become influential in northern Europe, but also an important reference in formulating heterodox economic policies (progressive) throughout the planet. The success of that model is due to the combination of a large State of Social Welfare with strict regulatory mechanisms of market forces, able to put the economy on a dynamic path, while that reached the best social welfare indicators among capitalist countries. Social democracy especially implanted in the Scandinavian countries which proved to be a successful alternative to the course of history could serve as a basis for building a new social model for all countries of the world. Despite the success of Scandinavian social democracy, the new model of society to build in the world should result in the
  • 4. 4 improvement of what is called Nordic or Scandinavian social democracy practiced in Denmark, Norway, Sweden and Finland. Despite their differences, they all share some common traits: State of Social Welfare Universalist that is geared to enhance individual autonomy, promoting social mobility and ensuring universal provision of basic human rights and stabilizing the economy. It is distinguished also by its emphasis on the participation of the workforce, promoting gender equality, reducing social inequality, extensive levels of benefits to the population and large scale redistribution of wealth [See Modelo nórdico (The Nordic model) text published on the website <http: //pt.m.wikipedia.org/wiki/Modelo_n%C3%B3rdico>]. It was social democracy built to date, especially in Scandinavian countries, the only model of society that allowed economic, social and political advances concurrent with the state acting as a mediator of conflicts between the interests of capital and civil society. It is no accident that the Scandinavian countries, besides having great economic and social achievements, are leaders in HDI (Human Development Index) in the world. In contrast, liberalism and neoliberalism where the State is always at the service of capital and civil society is marginalized, and of socialism where the state is at the service of a party or group in power and civil society is also marginalized, social democracy of the Scandinavian countries avoided the occurrence of excesses of liberalism, socialism and neoliberalism. Despite the great success of social democracy practiced in Scandinavia, the social democracy of the future should result from the improvement of the current model that would operate with a structured tripod based on a neutral State, civil society organizations active and productive sector (state and private) efficient effective. The neutral state would seek to reconcile the interests of the Productive Sector (state and private) with Civil Society mediating their conflicts in several instances of the executive and legislative powers that, when not achieved consensus, the final decision would be up to the population to decide democratically through a plebiscite and / or referendum. In the new social democracy, should not be allowed to share the monopoly groups and private cartels in the economy. Private companies would act only in economic sectors where there is competition. State or mixed enterprises occupy the economic sectors where it was not possible to have competition.  Fernando Alcoforado, member of the Bahia Academy of Education, engineer and doctor of Territorial Planning and Regional Development from the University of Barcelona, a university professor and consultant in strategic planning, business planning, regional planning and planning of energy systems, is the author of Globalização (Editora Nobel, São Paulo, 1997), De Collor a FHC- O Brasil e a Nova (Des)ordem Mundial (Editora Nobel, São Paulo, 1998), Um Projeto para o Brasil (Editora Nobel, São Paulo, 2000), Os condicionantes do desenvolvimento do Estado da Bahia (Tese de doutorado. Universidade de Barcelona, http://www.tesisenred.net/handle/10803/1944, 2003), Globalização e Desenvolvimento (Editora Nobel, São Paulo, 2006), Bahia- Desenvolvimento do Século XVI ao Século XX e Objetivos Estratégicos na Era Contemporânea (EGBA, Salvador, 2008), The Necessary Conditions of the Economic and Social Development-The Case of the State of Bahia (VDM Verlag Dr. Muller Aktiengesellschaft & Co. KG, Saarbrücken, Germany, 2010), Aquecimento Global e Catástrofe Planetária (P&A Gráfica e Editora, Salvador, 2010), Amazônia Sustentável- Para o progresso do Brasil e combate ao aquecimento global (Viena- Editora e Gráfica, Santa Cruz do Rio Pardo, São Paulo, 2011), Os Fatores Condicionantes do Desenvolvimento Econômico e Social (Editora CRV, Curitiba, 2012) and Energia no Mundo e no Brasil- Energia e Mudança Climática Catastrófica no Século XXI (Editora CRV, Curitiba, 2015).