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Study Guide # 4
Study Guide # 4

... 11 What types of economies are pictured here? Create a Venn diagram to show their similarities and differences. Left: Traditional, Right: Market Similiarities: a variety of choices of goods, little government interference Differences: Traditional may trade goods for goods with no currency involved. ...
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PDF version

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Participatory economics

Participatory economics, often abbreviated parecon, is an economic system based on participatory decision making as the primary economic mechanism for the allocation of the factors of production and guidance of production in a given society. Participatory decision-making involves the participation of all persons in decision-making on issues in proportion to the impact such decisions have on their lives. Participatory economics is a form of decentralized economic planning and socialism involving the common ownership of the means of production. The participatory economic system is proposed as an alternative to contemporary capitalism, as well as an alternative to central planning. This economic model is primarily associated with the proposals put forth by the political theorist Michael Albert and economist Robin Hahnel, who describe participatory economics as an anarchistic economic vision.The underlying values that parecon seeks to implement are equity, solidarity, diversity, workers' self-management and efficiency (defined as accomplishing goals without wasting valued assets). The institutions of parecon include workers' and consumers' councils utilizing self-managerial methods for making decisions, balanced job complexes, remuneration based on individual effort, and participatory planning.Albert and Hahnel stress that parecon is only meant to address an alternative economic theory and must be accompanied by equally important alternative visions in the fields of politics, culture and kinship. The authors have also discussed elements of anarchism in the field of politics, polyculturalism in the field of culture, and feminism in the field of family and gender relations as being possible foundations for future alternative visions in these other spheres of society. Stephen R. Shalom has begun work on a participatory political vision he calls ""par polity"". Both systems together make up the political philosophy of Participism. Participatory Economics has also significantly shaped the interim International Organization for a Participatory Society.
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