Slide 1:Participatory Economics (Parecon)


Slide 2:Introduction Parecon is an alternative economic system developed by: More can be found about parecon at parecon.org This talk has three chapters: (1) Values and Philosophy of Participatory Economics (2) Work in a Participatory Economy (3) Allocation of Goods and Services in a Participatory Economy


Slide 3:Values of Participatory Economics


Slide 4:The Four Social Spheres All four must be prioritized for successful change. Progress in one sphere may be dragged back by others. women subjugated, no freedom of religion. will still have poor people.


Slide 5:Values of Participatory Economics Participatory Economics promotes: (5) Efficiency: The economy should provide in a way that minimises social and ecological cost. (1) Self Management: People should have decision making power proportional to how they are affected by the decision. (2) Equity: Fair remuneration (payment). (3) Solidarity: The economy should promote consideration for others, and agreeable societal relations. (4) Diversity: The economy should promote a range of opinions and cultures.


Slide 6:(4) Payment according to need: Unarguably right, but impractical. No incentive. Remuneration and Equity There are several ways a society can reward work: (1) Payment according to bargaining power and property owned: Today’s norm, abysmal. (2) Payment according to output: Rewards genetic lottery. (3) Payment according to effort and sacrifice: Working harder or difficult job = more compensation. Incentive to work, fair.


Slide 7:What’s Wrong with Communism? Marxists failed to recognize the existence of the “coordinator class” (Albert & Hahnel). Don’t own the means of production, but coordinate the activities of other workers. Hire and fire, make up company policy, etc.


Slide 8:What’s wrong with Capitalism? Private ownership of the means of production = vast disparities of wealth and power. Institutions in capitalism are set up to further the interests of a small elite. This leads to war, famine, and perpetuation of racism and sexism. Massive effort and sacrifice must be expended to get justice (e.g. unions fighting for eight hour work day) Market goal is to buy cheap and sell dear. Wage slavery. Monopolies. Private and undemocratic media. No incentive to educate everyone. No reason for full employment. The workplace is unempowering for many. People live in cardboard boxes amidst great wealth. Anything good that happens, happens by struggling against the logic of markets.


Slide 9:Work in Participatory Economics


Slide 10:The Balanced Job Complex (1) (1) Install workplace democracy (self management): How do we improve the workplace? Conceptual workers will monopolise facts and figures to get their way. Still unpleasant jobs to perform for most. Therefore… For most, the workplace is not very enjoyable, rewarding or empowering. Give all workers one vote each on workplace affairs. Everyone does their fair share of rote, boring and unpleasant tasks, but Everyone does their fair share of conceptual, empowering, and enjoyable tasks. However...


Slide 11:The Balanced Job Complex (2) More on the BJC: Pay will be measured by hours worked. Powerful incentive to automate tasks (everyone does rote work). Those with different talents do different conceptual and empowering tasks. Some workplaces better than others (e.g sewage work v.s. publishing), therefore... (1) Everyone has empowering, enjoyable tasks. (2) Plenty of social pressure to produce. (3) Material incentive as a last resort. -Any innovation benefits everyone, not just the workplace it originated in. -e.g. managing, piloting, air traffic control, programming, resolving disputes, designing, accounting, etc. -People in less desirable workplaces spend time in more desirable ones, and vice versa. -The best way to get ahead in a parecon is to work for the benefit of all. Incentives to work are:


Slide 12:The Balanced Job Complex (3) Still more on the BJC: No need for unions, or defence against management. If a task requires a hierarchy, the job of being in charge will be rotated. Workplace is owned by everyone. People can still own personal goods. -There are worker’s caucus to bring complaints to and resolve disputes. Full employment. Being fired or quitting means relocation.


Slide 13:Worker’s councils and work life Council Decisions: Council Levels: Cannot vote on every decision, such as personnel and budgeting. Decisions will be made by those directly affected by the decision. Democratic councils from small groups to industry federations deal with work projects. Day to day life: -All these empowering jobs will be rotated. -Votes will require a majority, or two thirds majority, or consensus, etc. whatever is appropriate. -Every worker will be able to submit suggestions on how much and how to produce things for the next year. -The results will be made into long term plans by facilitation boards to be voted on by the workers. -Workers will meet to discuss the how and when for projects they are doing, how to improve life on the floor, resolve disputes, etc. -Workers will do the job they have been trained for.


Slide 14:Criticisms of the Parecon Workplace Answer: We are tapping into potentials of everyone that would otherwise lie dormant. Criticism: Some people make decisions better than others. Answer: Nobody is better at evaluating the morality of the decision than anyone else. Criticism: Too many meetings. Answer: We already have a lot of meetings. Criticism: Some people’s talents under used, less talented people can’t produce as well. -Understanding workplace consequences is best done by those directly affected. -Not trying for one person to win a race, but get the best total time from all racers. -People would no longer hate their jobs, increasing efficiency. -We don’t have meetings that involve everyone all the time. -Efficiency could go up due to everyone being on board for a project. -“Experts” can still be utilised. -The total amount of time for all meetings might be similar.


Slide 15:Allocation in a Participatory Economy


Slide 16:Overview of Allocation Allocation in a parecon is very different than any type of allocation we are used to. Economists accept two means of allocating goods and services to people: Participatory allocation is the third way, and should be a superior allocation system…


Slide 17:Consumer Council Proposals: Overview of Allocation (2) -Neighbourhood councils meet to discuss and vote on proposals to make neighbourhood requests. -Every year, individual consumers make consumption requests. -City-wide requests, provincial, and country wide requests are made also. -Individuals or groups of like minded people submit large scale proposals to Iterative Facilitation Boards . -Each worker also requests how much work they would like to do in the following year. -Production units also make proposals for what they will produce.


Slide 18:Overview of Allocation (3) Iterative Planning Procedure (first round): Consumers and workers look at new prices and make new proposals based on them. Proposals are summed up by computer. Prices reflect the “social opportunity cost.” IFB’s provide this service. Supply and demand is now known, and social and environmental costs are taken into account to generate prices of all goods and services.


Slide 19:Third round: proposals cannot deviate from past request by more than a certain percentage. Overview of Allocation (4) Iterative Planning Procedure (second to fifth rounds): IFB’s aid this process, generating a few feasible plans based on past rounds. Plans are voted on, one is implemented for the year. “Slack” is incorporated. Second round: proposals go in, new prices are generated.


Slide 20:Individual Proposals Consumer proposals are related to one’s work proposal. Requests are reviewed by boards made up of facilitation workers and community members. One does not have to propose their shoe colour. One must justify an above average request, otherwise one is told to make a new one. Community members look at other’s proposals (anonymously) and can critique. Nobody can stop another’s request. Details: -Reasons: disabilities, past work, borrowing, community service etc. -e.g. loud stereo (affects everyone), alcohol (can hurt the consumer). Reason for scrutiny is the self management principle, and to understand local needs.


Slide 21:“Money” in a Participatory Economy Money is not needed or used for distribution among workplaces. Institutions simply get what they ask for (after the iterative process). The time and resources that went into banking, accounting and advertising can now go into facilitation boards (along with many government functions). This information is then used by facilitation boards for plan updates. The “money” disappears after the purchase, to get more, one must work more. Purchasing is like bookkeeping. The series of purchases by a consumer is compared to what they proposed. Credits are not transferable. Theft and trade amongst individuals is no longer possible. Advertising, if any, will actually be truthful and information based.


Slide 22:“Money” in a Participatory Economy (2) Indicative prices in a parecon reflect “social opportunity” cost. Numbers are not enough, qualitative descriptions are needed for people to understand the costs of producing a good. These descriptions will: -Aid people to make decisions about what products they wish to order. -Give people a gradual education in the costs of producing a good. -Describe what factory work is like, environmental costs, etc. -Help facilitators come up with accurate prices.


Slide 23:Community and State Wide Proposals Anyone can attend and give input if interested. -e.g. road repair, new swimming pools, park space. Details: -larger projects, e.g. powerplants, mining, or space exploration. Proposals packages are then voted on. Units with above average requests will be pressured by others to rework proposals.


Slide 24:-There is no exchangeable money. -Meetings of facilitation boards are transparent to all. -Board members cannot handle data on their own community.


Slide 25:Worker’s Proposals Workers will also propose how much and what type of work they wish to do. For example: Again, facilitation boards will work these into planning packages to vote on. -In the middle of the week workers meet to discuss the proposals and suggest changes. -In all workers will spend perhaps ten hours during the planning week in meetings. They will also submit proposals on technological upgrades, plant expansion, etc. -IFB’s will present the results of worker’s proposals at the beginning of the week. -At the end of the week they will vote on which set of packages they wish to adapt.


Slide 26:Some More Points Much of what is now a political process today would now be an economic one. Community and kinship institutions that would work with parecon are also unclear. The main things left for a polity to do would be to make up laws and enforce them, and relate internationally to other countries. -Building a new hospital and demanding new equipment for it would now be solely in the participatory economic domain.


Slide 27:Realizing Values Anyone can submit requests and vote on large scale requests. Pay in proportion to effort and sacrifice. Workplace fosters solidarity. Self management: Don’t want to put eggs in one basket. Iterative planning doesn’t duplicate efforts. Work is self managed. Iterative procedure & pricing works out to “say in proportion to effect.” Equity: Solidarity: People make decisions based on how their choices affect others. Diversity: Efficiency: Probably have to work 20-30 hour weeks. Environment protected. Planning allows diversity of outcomes.


Slide 28:Answering Criticisms Criticism: Too much bureaucracy. Criticism: Too many meetings and too much work for consumers. Answer: The planning process would probably last a month: We already fill out bills and do tax returns, and do volunteer work. Participatory planning might take more time, but you would get time off work.


Slide 29:Criticism: People are to greedy and selfish. Answer: Parecon would encourage people to work together, not compete: Answering Criticisms -People today care at least for family members and friends, parecon encourages more. If it is true that people are too greedy and selfish, then it is useless to try and change anything for the better, and we might as well give up and submit to injustice. This is an abysmal state of affairs indeed, but if there is even a tiny bit of doubt that this is the case, then it is worth it to try. -Best way for a selfish person to get ahead is to work hard for the benefit of all. -People are products of their environment.


Slide 30:Getting There… How do we establish a Parecon? (1) Strengthen our unions and social institutions. (2) Establish Balanced Job Complexes wherever we can, and try to experiment with parecon allocation. -Support fights against racism, sexism, war, and all areas of social justice. (3) Develop compelling vision for all social spheres. Can an isolated country establish a parecon? Unless powerful states (i.e. the U.S.A) establish a parecon first, an isolated country might not survive. -One example is Mondragon Bookstore and Coffehouse in Winnipeg. -Campaign for a thirty hour work week, tax the rich, and participate in budgeting.