Saturday, 3 December 2011

*Time for economic democracy*

*Britain is an economic dictatorship*

*We expect political democracy. Why not economic democracy too?*

Peter Tatchell, Green Party

Huffington Post - London - 29 November 2011

Up to two million trade union members went on strike on Wednesday, in
protest against the government's attack on pensions and cuts in public
services. Their grievances are real. But their solutions don't go far
enough. Pressing the government for fairness isn't the answer. Staging a
protest is second best. These are reactive, defensive responses to
fundamental flaws and failings in the way our economy is organised and run.

The perennial failing of most trade unions is that their horizons are so
limited. They seek a better deal for their members within the economic
status quo, when the real solution is to reform the system of economy that,
by its very nature, leaves the vast majority of working people powerless,
disenfranchised and marginalised. When it comes to the economy, the average
person has no meaningful say in the decisions that affect their jobs,
wages, pensions and working conditions.

We expect political democracy. Why not economic democracy too?

Behind the cosy democratic facade, Britain is a cut-throat economic
dictatorship. A rich and powerful economic elite makes all the key economic
decisions, excluding millions of employees and consumers.

Our country's democratic political transformation - pushed forward by the
Levellers, Chartists and Suffragettes - has never been matched by a
corresponding economic democratisation.

'One person, one vote' has been won in the political sphere (albeit
imperfectly) but not in the realm of economics. Britain's democratic
revolution, begun four centuries ago, remains unfinished.

It is time to put economic democracy on the political agenda; to bring the
economy into democratic alignment with the political system.

Extending the economic franchise is about democracy and justice. It can
help create a greater plurality and diversity of economic power, and also
lay the foundations for a more equitable and productive economic
partnership between all those who contribute to wealth creation and to the
provision of public services, from local councils to the NHS.

Whatever people think of the current economic system, one thing is
indisputable: it is characterised by an absence of democracy,
participation, transparency and accountability. Employees and their
representative bodies - the trade unions - are frozen out of economic
influence and decision-making.

Big business rules. The captains of industry, commerce and finance have
almost total power. They run their enterprises on totalitarian lines. All
decision-making is concentrated in the hands of a tiny, privileged cabal of
major shareholders, directors and managers. They alone determine how the
company operates. Employees - without whom no wealth would be created and
no institution could function - are powerless and disenfranchised. They are
little more than glorified serfs of the moneyed classes and their
government.

Not much has changed in two centuries of capitalism. There have been no
major democratic reforms of the economy. Although millions of people bought
shares in privatised public enterprises like BT, their individual holdings
are minuscule and marginal. They have no real influence. Big corporate
interests retain the decisive economic power. This power is as centralised
and autocratic as ever. A few determine the fate of the many.

The advent of nationalised public industries, utilities and services
changed nothing. They have been run in much the same centralised,
dictatorial manner as their privately-owned counterparts. There was never
any economic democracy in the state-run railways or coal mines. The system
of ownership changed but not the system of management. The bosses of public
utilities and nationalised industries were almost as powerful as the
captains of private enterprise. Their employees remained locked out of the
decision-making process. It was state capitalism, not socialism. The Labour
Party and the trade unions have made a huge mistake in over-emphasising
public ownership, to the neglect of public control.

The same applies today in the NHS and other public services. They are
administered according to the classic capitalist model of top-down command
and control. NHS big-wigs have almost as much power as private medical
bosses. Doctors, nurses and ancillary staff are excluded from policy-making
in both public and private medicine.

Their years of accumulated hands-on, frontline service knowledge is
disregarded when it comes to policy-making. This is a huge waste of human
resources.

Wherever we look, in all sectors of the economy, the democratic deficit is
universal. Power is concentrated and wielded in ways that is contrary to
the democratic, egalitarian spirit of modern, twenty-first century Britain.
The time for economic democracy is now.

2 comments:

  1. Let me add here that people need to understand and be sensible in making their personal and collective economic choices.
    In managing the economy in any country, people and their government have to choose between four distinctly different available paths. Let us define them clearly and in simple terms:

    Model A:
    Maximize production & export; while maximizing consumption & imports. The results are: fast development; environmental degradation; and materialistic corporatism.

    Model B:
    Maximize production & export; while minimizing consumption & imports. The results are: wealth accumulation; social disparities; and international hostility.

    Model C:
    Low production & export; while maximizing consumption & imports. The results are: sovereign debts; loss of independence; and dysfunctional state.

    Model D:
    Low production & export; while minimizing consumption & imports. The results are: slow development; low qualities; and weak defenses. (which are not bad as they may perceived).

    Only these models are demonstrated in all countries and the citizens can plainly know which way their country is going to, and argue with their governments the wisdom of their path.

    So now what do people want? Do they want to be crazy; greedy; irresponsible; or vulnerable?
    If people look deep inside their souls the answer will be definitely obvious.

    ReplyDelete
  2. Thanks for your considered remarks.
    Essentially the Greens want to move towards a different economic model than the current one. Today's problems are very much your Model A of max production and max consumption. But this assumes that government is in charge of the economy! Obviously the banks are in charge - for the time being! Being able to dictate a £1 trillion bailout is no mean feat. Being able to dissaude politicians from re-introducing financial regulation likewise (although with this venal lot it's no challenge).
    The basic reason for a growth economy is so that rich people can get richer. While we have huge disparity in wealth (moreso now than since the second world war) there's no reason to support this system.
    We don't have huge ideology over the sort of ecobnomic system we want - but we do have lots of policies on what we don't want - basically controlling and charging the excesses of capital and lots of ideas about where to go. So it's ludicrous to us, for example, that tons of salad goods are sold from here to Germany while at the same times we buy the same stuff in. It's just wasted effort! No particular advantage to either market. Long-term we want to see the basic needs of people met - in all countries we trade with. We would like to see all trade to be fair, whether it's called that or not. This also includes fair to the planet, ie trade which is sustainable and not wrecking the ground on n which we stand.

    ReplyDelete