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New Labour's Third Way: Pragmatism and Governance

The article critically examines New Labour's development of the concept of the Third Way. Despite the apparent centrality of ‘social democracy’ to the Third Way, it is proposed that a more pragmatic approach dominates, in that outputs and not ideology are driving the new agenda of governance under New Labour. This is seen to have its roots in the new ways of working the party has embraced in local governance, where public–private partnerships have become the norm and a new ethos of public service has emerged. In contrast with the top-down approach to setting output targets favoured by Tony Blair, the Third Way offers the possibility of a more experimental, pragmatic and decentralised decision-making process—and the local governance network (with elected local councils as pivotal and legitimising actors) is presented as the ideal agent to deliver this.