The third way not only catapulted Tony Blair into government in the second half of the 1990s but it also provided a platform for Labour Parties to rethink social democracy.

It brought down the bastions of resistance to change and flexibility and replaced rigid dogma with a new found sense of pragmatism that can in no way be construed as representing political opportunism.

More important than that it gave the Left a newfound confidence after having seen it suffer consecutive defeats to a resurgent Right.

A look at governance in certain countries like Sweden shows that you can have a centre-left administration that provides high levels of economic growth and a stable pro-business environment without in any way sacrificing or betraying the traditional Left commitment to social justice.

At the recent Progressive Governance Conference held in Hungary the point was made that as social democrats our current challenge is to inspire faith in our political message. Not only must we strive to be more open and engaged with our voters, but above all, we must not be afraid to show our values: social justice, equality of opportunity, solidarity and an inherent belief in progress.

As social democrats we must be optimists and share our vision of a progressive future.

This was the key message that Matt Browne conveyed when he posed the question: Where now for the Third Way?

Whether we perceive globalisation as a threat or challenge it made it clear that we cannot demand-manage national economies.

This made us rethink the role of the state in the modern era. Particularly since globalisation was accompanied by the apparent triumph of free market fundamentalism, a byword for unbridled neo-liberalism.

Without in any way advocating the class struggle we must realise that society today is creating a new form of inequality.

The trickle down effect has manifestly failed to narrow the social divide, and the knowledge economy continues to throw up new inequalities of opportunity - just as the breakdown of the traditional family creates new social needs.

Most importantly of all we must connect with voters and inspire them by explaining problems in a down to earth manner. The state should not be expected to play 'Big Nanny' any longer. And we must recognise that voters are responsible people who can be trusted to run their own affairs.

Browne, who edits Progressive Politics, used this argument as leverage for the very valid point that if we show people that we trust them, they in turn come to trust us.

There is a tendency to ignore such basic issues when the headlines are constantly being hogged by developments in the Middle East and Iraq.

While committing ourselves to the permanent renewal of our agenda, we must make it clear to one and all that we remain committed to protecting citizens against those risks from which they cannot protect themselves.

Where the Third Way struck a chord was in the sense that instead of offering mere protection it sought to complement protection with a commitment to empowerment.

In the future, even in Malta, the productive capacity of our societies will depend on whether the working population has the necessary skills and abilities to meet the demands of a modern knowledge economy.

Rather than thinking of egalitarianism in the classical sense of the word, we must think more in terms of equality of opportunity.

Social democrats must convince their respective electorates that with them in government one will actually be extending opportunity.

While confronting the growing scepticism in the power of politics to change peoples' lives, we must work to act as such agents of change.

Globalisation, whether we like it or not, impacts on both the international and the domestic dimensions and agendas of our society.

We must create and preserve a sound and strong social safety net without sacrificing initiative and innovation.

A social dimension today is not only about protecting those who have jobs and standing up for the unemployed but also about training, retraining and working hard to avoid mismatching skills. Without a clear strategy and willingness to take action, the opportunities of globalisation might turn into obstacles to development.

The Swedish premier recently expressed the very real concern that a lot of people do not believe that their children will live in better societies and economic circumstances in the future than they themselves do today.

He continued to argue that if people feared the future, they will not see or realise its potential.

He recalled that when Sweden experienced unemployment close to two-digit rates, they launched a rapid increase in adult secondary education. As a consequence of this forward looking move, and as the speed of the economy picked up again, a large share of the unemployed stood ready to take the new jobs with modern basic knowledge.

A recent study spoke of the rapid increase in child poverty in European societies. In some countries for example, Germany, Spain, Italy, Luxembourg or the Netherlands, the incidence of child poverty has already exceeded the poverty among the elderly.

These indicators are worrying because they can give rise to new vicious circles.

The strengthening of a dynamic, really effective welfare state in the fight against social disadvantage traps calls for new and significant (political, institutional and financial), investments in the education sector.

Now is the time to rethink the traditional social democratic vision without betraying any of our basic values and principles.

Leo Brincat is the Opposition spokesman on foreign affairs and IT and is a former Minister of Finance. leo.brincat@gov.mt