The Relational State

One of the main topics of discussion was the challenge facing the welfare state in the context of globalisation, competition, environmental issues and changing social pressures. The various panellists and speakers looked at the distinctive characters of corporate responsibility-oriented governance, the Relational State governance model and its relation to its predecessors (such as the welfare state and the neo-liberal governance model) and the role of government in modern, democratic societies.

The consensus was that modern liberal democracies have reached a crossroads where the welfare state must evolve to meet evolving social, economic and political pressures. The future, according to the research team, is in a Relational State model whereby governments enter into more multi-party (e.g. public-private) partnerships according to capabilities and competencies and to promote more involvement of civil society, multi-stakeholder dialogues and responsible self-regulation by business.

Keys to these are a positive regulatory environment and the research and education to enable to make sustainable and responsible business practices an integral part of business strategy.