In What We Owe Each Other: A New Social Contract for a Better Society, Minouche Shafik, a distinguished economist and member of the House of Lords, presents a compelling and timely vision for rethinking the social contract that underpins our societies. With a blend of historical analysis, economic insight, and moral philosophy, Shafik explores how the relationships between individuals, governments, and markets must evolve to address the challenges of the 21st century.
The central premise of the book is that the current social contract—how society organizes its obligations and benefits among its members—has become outdated. Shafik argues that the old social contract, which was largely shaped by the industrial revolution and the welfare state models of the 20th century, no longer meets the needs of today’s diverse and interconnected world. Rapid technological change, demographic shifts, globalization, and environmental challenges have rendered many of the old assumptions about work, family, and government obsolete. Shafik makes the case for a new social contract that reflects these changes and better addresses the needs of all members of society.
One of the strengths of Shafik’s approach is her emphasis on the concept of mutual responsibility. She argues that a successful social contract is one where individuals, governments, and businesses all recognize and fulfill their obligations to one another. This involves not only the provision of safety nets for the most vulnerable but also ensuring that everyone has the opportunity to contribute to society and benefit from its progress. Shafik calls for a reimagining of social policies in areas such as education, healthcare, and social security, to create a more inclusive and equitable society.
The book is divided into several sections, each focusing on different aspects of the social contract. Shafik covers a wide range of topics, including the future of work in an age of automation, the role of education in promoting social mobility, the need for universal health care, and the importance of environmental sustainability. She draws on examples from different countries to illustrate how various approaches to social policy have succeeded or failed and what lessons can be learned for the future.
Shafik’s writing is clear and accessible, making complex economic and social concepts understandable for a general audience. She effectively combines data-driven analysis with personal anecdotes and real-world examples, which makes her arguments both compelling and relatable. Shafik’s background as an economist and her experience in global policy circles lend credibility to her proposals, and she presents a well-rounded, evidence-based case for why a new social contract is necessary.
One of the key messages of What We Owe Each Other is the importance of solidarity and collective action. Shafik argues that in an increasingly fragmented and unequal world, it is more important than ever to recognize our interdependence and to create systems that ensure no one is left behind. She advocates for policies that promote greater economic security, reduce inequality, and protect the environment, while also encouraging active participation in the political and social life of communities.
While Shafik’s vision is ambitious and inspiring, some readers might find her proposals challenging to implement, particularly in countries with deeply entrenched political divisions and differing views on the role of government. Critics may also argue that her emphasis on the role of the state could overlook the importance of individual initiative and market-driven innovation. However, Shafik addresses these concerns by advocating for a balanced approach, where governments, markets, and civil society all play complementary roles in creating a fairer and more resilient society.
In conclusion, What We Owe Each Other: A New Social Contract for a Better Society is a thought-provoking and essential read for anyone interested in the future of social policy and the well-being of our societies. Minouche Shafik offers a powerful call to rethink the way we organize our obligations to one another and to build a more just and sustainable world. Her vision of a new social contract is both timely and necessary, providing a roadmap for how we can collectively navigate the challenges of the 21st century and create a better future for all.