Democracy and economic planning: The political economy of a self-governing society

by Pat J. Devine

This book is a wide-ranging analysis of the nature of economic planning in both capitalist and state socialist societies. It seeks to establish an alternative to market forces as a means of co-ordinating decentralized economic decisions. The author begins with an analysis of the theory and practice of capitalist planning, central planning and market socialism. He argues that, while market socialism is currently favoured by many economists who reject both capitalism and the command planning of Eastern Europe, it cannot fulfil the promises held out for it. In the remainder of the book the author elaborates an alternative model based on the novel idea of negotiated co-ordination. The model combines system-wide with decentralized decision-making, recognizes the existence of differences of interest and incorporates a transformatory dynamic in which individuals modify their attitudes in the light of the positions of others. The model offers a detailed account of how economic activity could be organized in a self-governing society. This work should be of interest to students of economics, politics and sociology, as well as to a more general audience concerned with the nature of, and prospects for, socialism and democracy.

Genres: Economics

306 pages, Hardcover

First published November 1, 1988

Reviews

[Martin Empson · Rating 3 out of 5]

Some very interesting thoughts, and particularly good on why "statist" and capitalist economies fail to plan their economies in the interests of the collective. Some very clear arguments on the need for democratic planning and how that might work. The book is marred by two things. The first is the dry academic style. More importantly is the second - there's a lack of any clarity on how a democratic planned economy could come about - just some hand waving about hegemonic political organising, which is unsatisfying given the power of the capitalist state. Nevertheless, some very useful and thought provoking material.

[George Watson · Rating 5 out of 5]

The term socialism is back in vogue but no one is quite sure what it would mean to go beyond social democracy. This was a very interesting book about what a functional planned economy could look like in the 21st century. After the disasters of Soviet and Chinese models, and the economic and ecological chaos unleashed by neoliberal economics, Devine envisions the institutions and processes that could undergird a democratically-planned socialist economy.