Anthony Giddens's Third Way rests on his social theory of modernisation and globalisation, and employs the notion of 'generative equality' to propose a new model for social policy. This chapter explores Giddens's idea of 'generative equality' in the form of a critique from a managerial perspective. In managerial terms, Giddens has espoused a Japanisation of state welfare provision, as productivism (Taylorism) moves to productivity (self-actualisation and empowerment). From a managerial perspective Giddens can be seen to draw from a critique of Taylorism and scientific management in his analysis of the welfare state. The values of social cohesion and productivity expressed by Giddens certainly stand in the socialist tradition, but his explanatory framework marks a significant departure from those employed by democratic socialism. Social democrats in the Labour Party have retreated into a backward defence of the welfare state.