Participatory socialism.

• Author: Burke, Richard
• Position: Book review

Robin Hahnel, Economic Justice and Democracy: From Competition to Cooperation, with an afterword by Noam Chomsky, 2005. New York: Routeledge Books, ISBN 0-415-93345-5.

One of the most encouraging trends in recent left-wing thought has been the Participatory Economics model proposed by Michael Albert and Robin Hahnel as an alternative to both market-based capitalism and centrally planned command economies. In recent years a number of books by Albert have presented the idea, but in an often unfortunately dogmatic and simplistic fashion. Now, in Economic Justice and Democracy: from Competition to Cooperation, Robin Hahnel presents his version, both visionary and realistic, with a sophistication that does credit to the concept.

For those unfamiliar with Participatory Economics a summary is necessary. It combines public, or common, ownership of the means of production with a highly decentralized management structure based on workers' and consumers' councils organized by principles of federation into larger units. Through these councils democratic decisions regarding production and consumption are made. Payment is made solely according to the effort and sacrifice of workers in their jobs. Balanced work complexes, in which all are required to perform menial and rote tasks as well as participate in decision-making, prevent the monopolization of knowledge and skills by a "coordinator" class. Economic plans are devised by workers and consumers submitting proposals in a series of iterations aided and guided by "facilitation boards" whose function is to track economic data and sum up proposals in plans to be voted upon collectively. The system would function autonomously from any governmental institutions. Production is for use, not profit. Albert and Hahnel have made a convincing argument that their model would achieve its aims efficiently and democratically while being able to handle the externalities, or social costs, which capitalist markets are unable to account for.

In his books on Participatory Economics (for which he has coined the inelegant term "parecon") Albert presents the model as a kind of fixed system, to be attained as the result of inevitable linear social progress.

Hahnel's version is more subtle. He recognizes that building an alternative to capitalism is a process that will take many generations, and which may never be fully completed. For him Participatory Economics is more of a guiding vision, and he is aware that a very long...