This chapter contains sections titled: The Indictment Background Institutions for Distributive Justice A Non‐Capitalist Property‐Owning Democracy Economic Democracy ED Versus POD POD Modified References.

Economic Democracy: A Worthy Socialism That Would Really Work.

This paper addresses ways of arguing fors ome form of economic democracy from within a broadly Rawlsian framework. Firstly, one can argue that a right to participate in economic decision-making should be added to the Rawlsian list of basic liberties, protected by the first principle of justice. Secondly,I argue that a society which institutes forms of economic democracy will be more likely to preserve a stable and just basic structure over time, by virtue of the (...) effects of economic democratization on the development of an active, democratic character among citizens. Thirdly, I argue that a proper understanding of the demands of the difference principle shows that justice demands more than ex post redistribution, but also requires the ex ante redistribution of power and authority in economic life. This connects to Rawls’s discussion of the badness of inequality, and to his endorsement of a “property-owning democracy”. -/- My conclusion is that, even if we may doubt the success of this first Rawlsian argument,the second and third arguments are both successful, and together establish a strong Rawlsian case forseeing economic democratization as a requirement of justice. (shrink)

This article argues that the Mondragon cooperatives, a network of worker-owned businesses in the Basque region of Spain, offers a concrete example of Deweyan economy, wherein democracy is part of everyday work-life. It first identifies three central features of Deweyan economy: a) its notion of economic growth is rooted in human growth; b) it is organic and evolutionary, not ideological or utopian; and c) it is empirical and experimental. Second, the article sketches some of the important historical and (...) philosophical influences upon and distinct features of the Mondragon cooperatives, and, third, it indicates how the Mondragon cooperatives manifest each of the three central features of Deweyan economy. The article concludes by suggesting that the Mondragon cooperatives have achieved a previously unknown level of economic democracy and that its recent modifications in response to changing economic conditions, far from being retreats from fundamental principles, as some critics maintain, are evidence of Mondragon’s experimental, non-ideological character. Furthermore, it is an economic model that transcends the stale, false capitalist-socialist dichotomy and thereby helps us to imagine creative solutions to current economic problems. (shrink)

“Economic Democracy: A Worthy Socialism that Would Really Work” laid out a model that was to form the basis of my book Against Capitalism, published by Cambridge University Press in 1993. The article, like the book itself, was a theoretical response to the triumphalism of the TINA crowd that followed the collapse of Soviet Union and the rejection of socialism by its satellite states in Eastern Europe. “A Worthy Socialism” was intended to demonstrate rigorously that there is an (...) alternative, at least in theory: an economically viable form of socialism that would be more democratic than capitalism and at least as efficient. Against Capitalism made the same point, but extended the argument further. Economic Democracy would be not only as efficient as capitalism and more democratic, but also more rational in its growth, more stable, more egalitarian, less prone to high unemployment, more ecologically friendly. I was sick of hearing even progressives say that “we are going to have to stop using the term ‘capitalist economy’ as if we knew what a functioning non-capitalist economy would look like.”. (shrink)

This article considers the relative advantages of alternative enterprise forms in finance from the point of view of public accountability. The business corporation is compared to the state agency or authority, the cooperative, the state corporation, and the charitable nonprofit. These forms can be distinguished according to whether they aspire to enhance general electoral democracy or stakeholder democracy and whether their democratic controls operate directly or indirectly. The article suggests that the indirect democratic forms may be more promising (...) than the direct ones. It also argues that the project of democratizing finance depends on the development of practices of multifactor or “dialogic” performance assessment. Such practices must be institutionalized through public or private organizations that extend across firms. (shrink)

Tocqueville pessimistically predicted that liberty and equality would be incompatible ideas. Robert Dahl, author of the classic _A Preface to Democratic Theory,_ explores this alleged conflict, particularly in modern American society where differences in ownership and control of corporate enterprises create inequalities in resources among Americans that in turn generate inequality among them as citizens. Arguing that Americans have misconceived the relation between democracy, private property, and the economic order, the author contends that we can achieve a society (...) of real democracy and political equality without sacrificing liberty by extending democratic principles into the economic order. Although enterprise control by workers violates many conventional political and ideological assumptions of corporate capitalism as well as of state socialism. Dahl presents an empirically informed and philosophically acute defense of "workplace democracy." He argues, in the light of experiences here and abroad, that an economic system of worker-owned and worker-controlled enterprises could provide a much better foundation for democracy, political equality, and liberty than does our present system of corporate capitalism. (shrink)

The purpose of this article is to present in a summarized form a new approach to the ethical analysis of economic policies and to illustrate its importance with a reference to recent experiences of social dialogue in Costa Rica.A general view of the Latin American scenario is presented, with the belief that some of the main problems there observed call for a type of analysis like the one here proposed. In the second place, a brief characterization of this new (...) ethical analysis is included. (shrink)

Tocqueville pessimistically predicted that liberty and equality would be incompatible ideas. Robert Dahl, author of the classic _A Preface to Democratic Theory,_ explores this alleged conflict, particularly in modern American society where differences in ownership and control of corporate enterprises create inequalities in resources among Americans that in turn generate inequality among them as citizens. Arguing that Americans have misconceived the relation between democracy, private property, and the economic order, the author contends that we can achieve a society (...) of real democracy and political equality without sacrificing liberty by extending democratic principles into the economic order. Although enterprise control by workers violates many conventional political and ideological assumptions of corporate capitalism as well as of state socialism. Dahl presents an empirically informed and philosophically acute defense of "workplace democracy." He argues, in the light of experiences here and abroad, that an economic system of worker-owned and worker-controlled enterprises could provide a much better foundation for democracy, political equality, and liberty than does our present system of corporate capitalism. (shrink)

This article explains how Pope Francis’s economic views are both radical and practical. His views are practical in the sense that they are sensitive to social realities, not theoretical abstractions; and they are radical in the sense that they undermine traditional economic ideologies. To demonstrate these points, I show how Francis’s pronouncements are consistent with “economic democracy.” In economic democracy efforts are made to create a more equal dispersal of capital assets and the economy (...) is more squarely oriented around fundamental human ends, including the common good, human dignity, equality and opportunity, meaningful work, ecological responsibility, and solidarity. (shrink)

Journal of Social Philosophy, EarlyView.

The purpose of this article is to present in a summarized form a new approach to the ethical analysis of economic policies and to illustrate its importance with a reference to recent experiences of social dialogue in Costa Rica. A general view of the Latin American scenario is presented, with the belief that some of the main problems there observed call for a type of analysis like the one here proposed. In the second place, a brief characterization of this (...) new ethical analysis is included. Democracy suffers from the existence of asymmetries in social and economic relationships, insofar as the success of political democracy cannot be neither understood nor built up independently from economic democracy. The strengthening of democratic processes in Latin America requires a better understanding and consolidation of the relationship between political democracy and economic democracy. On the other hand, present orientation of globalization makes of the international environment an obstacle to realize democracy at a national level. Hence, two focus of interest arise for the ethical analysis of economics at the macroeconomic level: the study of the ethical conditions of participation for each country in the globalization process, and the realization of an economic democracy within each particular country. After identifying both lines of reflection, this article summarizes the theoretical basis of a proposal for the ethical analysis of economic policy making. This approach attempts to answer the challenges of economic democratization. Centered on the ethical dimension of these processes, and from the point of view of a dialogical ethics, stress is given to those aspects of the process which will guarantee the ethical character of the consequences. This is a methodological approach which tries to discover the ethical values feasible within the economic policies and, at the same time, to go in greater depth in the construction of democratic practices. Rooted in the Latin American regional reality, this academic reflection is just in its beginning and must be considered as complementary to the business ethics analysis already developed in Latin America and Spain. A reference to recent experiences of social dialogue in Costa Rica gives the theoretical presentation a support for the acceptance of its realization in practice. (shrink)

A New Vision of Economic Democracy, Or: What To Do When the Bailout Fails.

There Is an Alternative: Economic Democracy and Participatory Economics, A Debate.

ABSTRACT The publication of Pope Leo XIII's encyclical Rerum Novarum in 1891 established a tradition of Catholic social teaching concerned with the moral obligations that should exist between capital and labour. In Ireland the encyclical instigated enthusiasm among some clergy for their congregation's welfare. An urgency given to social and economic questions coincided with the co-operative movement's introduction to the Irish countryside. Rural co-operative societies were established as part of a wider programme of economic democracy that placed (...) ownership of production in the hands of farmers. The growth of the co-operative movement benefitted from the participation of members of the clergy at both a national and local level. Co-operative organisers and socially minded priests shared an interest in addressing the iniquities of capitalist modernisation. Co-operators championed a communal form of business organisation that emphasised the moral importance of economic activity as much as its productive importance. The involvement of Catholic priests in the co-operative movement naturalised priest-led social action in the sphere of rural development. This article analyses intersections between the economic objectives of co-operation and Catholic social teaching to understand how attempts to promote a more democratic economy had a profound influence over the country's economic development. (shrink)

In Democracy without Shortcuts, Cristina Lafont elaborates the view that participatory deliberation is at the heart of every democracy and that both truth-tracking and mutual justification are the...

Suggests that there is an integral relationship between support for civil rights and support for a cluster of practices that might be characterized under the heading off "economic democracy." These include participatory workplace governance schemes and basic income schemes as alternatives to conventional income support programs.

My main objective in this paper is to show that Hermann Cohen's ethics offers an important but hitherto neglected contribution to the- current debate within Anglo-American ethics on the moral status of the modern business corporation.

From a pre-publication review by the late Austrian economist, Don Lavoie, of George Mason University: -/- "The book's radical re-interpretation of property and contract is, I think, among the most powerful critiques of mainstream economics ever developed. It undermines the neoclassical way of thinking about property by articulating a theory of inalienable rights, and constructs out of this perspective a "labor theory of property" which is as different from Marx's labor theory of value as it is from neoclassicism. It traces (...) roots of such ideas in some fascinating and largely forgotten strands of the history of economics. It draws attention to the question of "responsibility" which neoclassicism has utterly lost sight of. It is startlingly fresh in its overall approach, and unusually well written in its presentation. ... It constitutes a better case for its economic democracy viewpoint than anything else in the literature." . (shrink)

ABSTRACTJohn Tomasi's Free Market Fairness claims to provide a principled defense of classical-liberal institutions. Respect for the development of our moral powers or “self-authorship,” according to Tomasi, requires that we make certain economic liberties basic, including freedom of contract and the right to accumulate property. Yet Tomasi's principles and his institutions are at odds. Tomasi has provided ethical grounds for defending not classical-liberal but radical-democratic, even socialist, economic freedoms. This is most vivid in Tomasi's account of the “liberties (...) of working.” He argues that it is not just the choice of work but control of the workplace experience that is a vital part of our self-authorship. If this is true, Tomasi has not given a defense of a robust right to “freedom of contract,” but rather of those rights of control over work and property that leftists have long argued for. (shrink)

It is said we live in a second Gilded Age, which makes our understanding of the first all the more relevant. Rosanne Currarino’sThe Labor Question in Americamakes the bold claim that, far from being a period of defeat for the Left, the original Gilded Age saw an expansion of democratic citizenship. A group of economists, social reformers and labour organisers transformed our understanding of political participation from the earlier, producerist to a more modern, consumerist ideal of social inclusion and collective (...) agency. However, on her own telling, Currarino’s ‘expansion’ comes across more as a ‘substitution’. Some workers gained in wages what they lost in control of the means of production. Though Currarino fairly identifies the utopian aspirations underlying the demand for higher levels of consumption, her narrative relies on an overly rigid distinction between production and consumption, missing out on the way in which consumption came to be defined in ways that assumed the workplace would be a site of submission. Finally,The Labor Questionfails to include, as parts of its narrative, the extraordinary violence that marked struggles over the labour question. In this context, the shift from ‘producerist’ emphases on worker control to ‘consumerist’ views of economic citizenship look more like an ideological displacement than they do a progressive expansion of democracy. (shrink)

During the last two centuries, property understood as an exclusive and unlimited dominion became common sense. Before, the idea of property as a fiduciary relationship, which is still present in contemporary social constitutionalism, was closely linked to the view that the exercise of freedom entails the capacity to shape those property rights that channel socioeconomic life. Today, new ways to operationalise such an approach must be found. This article explores the scope of ‘direct strategies’ and ‘indirect strategies’ in the recovery (...) of the idea and the practice of collective fiduciary control over the economic realm. (shrink)

One of the most original assumptions is that political actors are groups of thematized information. They effectively test the political, traditional sources of meaning, and reservoirs of identity. The post-religiousness of the presentness is transcendentally neutral; there is no contradiction between the transcendental and the immanent. Why and how relics steal into the political? The social does not create any meaning considerably stronger than the empty meanings of dedicated metaphysics and discourses, but the social creates itself within the totariental (total (...) - poleless - disorienting). The book contains analyses of the implementation of political crises and crises of the political. In other words, two processes are simultaneously used by political actors in contemporary democracy. These tools are not only moderators of naturally spontaneous democracy. Economic, cultural, and political changes are pressed ahead by technically, sociologically and military equipped actors for whom democracy is efficient. (shrink)

This article argues that current economic upheaval should be understood as a problem of domination, in two respects: the ‘dyadic’ domination of one actor by another, and the ‘structural’ domination of individuals by a diffuse, decentralized, but nevertheless human-made system. Such domination should be contested through specifically democratic political mobilization, through institutions and practices that expand the political agency of citizens themselves. The article advances this argument by synthesizing two traditions of political thought. It reconstructs radical democratic theory from (...) the Progressive Era. These thinkers in turn help to reinforce contemporary debates in neorepublican thought, resolving disputes over the scope of domination and the relationship between domination and democracy. This synthesis offers a novel normative framework for diagnosing and responding to the current combination of economic upheaval and political dysfunction. (shrink)

The quest for freedom from hunger and repression has triggered in recent years a dramatic, worldwide reform of political and economic systems. Never have so many people enjoyed, or at least experimented with democratic institutions. However, many strategies for economic development in Eastern Europe and Latin America have failed with the result that entire economic systems on both continents are being transformed. This major book analyzes recent transitions to democracy and market-oriented economic reforms in Eastern (...) Europe and Latin America. Drawing in a quite distinctive way on models derived from political philosophy, economics, and game theory, Professor Przeworski also considers specific data on individual countries. Among the questions raised by the book are: What should we expect from these experiments in democracy and market economy? What new economic systems will emerge? Will these transitions result in new democracies or old dictatorships? (shrink)

We have long been accustomed to thinking of democracy as a major selling point of Western institutions. That a set of political institutions should be democratic is widely regarded as the sine qua non of their legitimacy. So widespread is this belief that even those whose institutions do not look very democratic to us nevertheless insist on proclaiming them to be such. Meanwhile, an adulatory attitude toward democracy has arisen in many quarters, and many theorists have taken up (...) anew the idea that if democracy is the way to go in political institutions, then it must also be the way to go in “other” areas, notably in economic and social institutions. So there has arisen a call for “economic democracy” — which is taken to mean, especially, that the “means of production” should be managed by their constituent workers in concert rather than by some few who own, or act for the owners of, those enterprises. Robert Dahl, in his influential Preface to Economic Democracy, sums it up nicely when he proclaims a “stronger justification” for worker participation: “ If democracy is justified in governing the state, then it must also be justified in governing economic enterprises; and to say that it is not justified in governing economic enterprises is to imply that it is not justified in governing the state.”. (shrink)

There are two principal philosophical conceptions of socialism, corresponding to two interpretations of the notion of a rational society. The first conception corresponds to an instrumental view of social rationality. Captured by the image of socialism as “one big workshop,” the instrumental view holds that social ownership of the means of production is rational because it promotes the optimal development of the productive forces. Social ownership is optimal because it eliminates the costs of coordination imposed by the conduct of (...) class='Hi'>economic activities in formally independent enterprises, and, more generally, overcomes fetters on development that result from the control of resources by individuals whose particular interests imperfectly correspond to a general interest in productive advance. (shrink)

This dissertation addresses a debate about the proper relationship between democratic theory and institutions. The debate has been waged between two rival approaches: on the one side is an aggregative and economic theory of democracy, known as constitutional economics, and on the other side is deliberative democracy. The two sides endorse starkly different positions on the issue of what makes a democracy legitimate and stable within an institutional setting. Constitutional economists model political agents in the same (...) way that neoclassical economists model economic agents, that is, as self-regarding, rational maximizers; so that evaluations of democratic legitimacy and stability depend on the extent to which the design of institutional rules and practices maximize individual utility by promoting efficient schemes of collective choice. Deliberative democrats, on the other hand, understand political agents as communicative reason-giving subjects who justify their preferences and positions on issues that jointly affect them in a process of consensus-directed discourse, or deliberation; so that evaluations of democratic legitimacy and order depend on the degree to which institutional norms and practices promote deliberation and draw upon deliberated public judgment. I argue that despite the numerous incompatibilities between constitutional economics and deliberative democracy—which amount to a 'deep divide'—an opportunity to produce a genuine synthesis of the two approaches arises inasmuch as it is possible to overcome several points of opposition in their separate research programmes. The central thesis of the dissertation is that it is possible to construct a bridge spanning the divide between constitutional economists and deliberative democrats, and that Dewey and Bentley's transactional view can facilitate this bridge-building project. Pursuant to this end, the points of opposition between the v research programmes are mediated by way of five concepts which, on balance, favor deliberative democracy and its feasible institutionalization. (shrink)