What We Owe Each Other

What does society owe each of us? And what do we owe in return? Our answer to these inescapable questions – known as the social contract – shapes our politics, economic systems and every stage of life, from raising children and going to school to finding work and growing old. Yet today, many believe that this contract is not working for them.

The social contract has broken down in recent years, driven by factors including changing expectations around gender divides, technological advances, ageing populations and climate change, and it is broken in particular between generations. However, there are many ways to fix it. For example, education systems should invest more in the first 1,000 days and in lifelong learning; flexible labour markets need to provide more unemployment and retraining support, as happens in many Nordic countries.

The social contract should provide a minimum floor, better investment in lifelong opportunity and capability, and better sharing of risk through collective schemes. The current, overly individualistic approach is not only unjust but also inefficient; if we invest more in each other, and expect more back in return, we will increase opportunity, security and efficiency. Today’s multiple crises provide an opportunity to shift our thinking and take action on these longer term issues.