Social democracy is a political, social and economic ideology that supports economic and social interventions to promote social justice within the framework of a capitalist economy; and a policy regime involving collective bargaining arrangements, a commitment to representative democracy, measures for income redistribution, regulation of the economy in the general interest and welfare state provisions. Social democracy thus aims to create the conditions for capitalism to lead to greater democratic, egalitarian and solidaristic outcomes; and is often associated with the set of socioeconomic policies that became prominent in Northern and Western Europe—particularly the Nordic model in the Nordic countries—during the latter half of the 20th century.
Social democracy originated as a political ideology that advocated an evolutionary and peaceful transition from capitalism to socialism using established political processes in contrast to the revolutionary approach to transition associated with orthodox Marxism. In the early post-war era in Western Europe, social democratic parties rejected the Stalinist political and economic model then current in the Soviet Union, committing themselves either to an alternate path to socialism or to a compromise between capitalism and socialism. In this period, social democrats embraced a mixed economy based on the predominance of private property, with only a minority of essential utilities and public services under public ownership. As a result, social democracy became associated with Keynesian economics, state interventionism, and the welfare state, while abandoning the prior goal of replacing the capitalist system (factor markets, private property and wage labor) with a qualitatively different socialist economic system.