This article challenges the basis of the new British government's conception of social justice, and hence its social policy programme. Under conditions of globalised exchange, with an international division of labour, the national economy cannot meaningfully be represented as a ?system of co?operation'; hence, the principle of reciprocity cannot justify favouring the claims of fellow citizens over those of foreigners. In these circumstances, restrained competition among members becomes a more important element in mutuality than individual labour contribution. Distributive justice must (...) be located in an institutional context that provides such restraint, and yet promotes participation for the common good. This requirement redirects attention towards the basic income approach to redistributive issues, and suggests alternative ethical justifications for its implementation. (shrink)