Political and Economic Democracy

Recent events have made the achievement of political, economic and social democracy on a world scale more feasible than ever before. Democracy represents the prime means for popular control and humanisation of the otherwise uncontrolled forces which are re-shaping our planet without regard for its survival.

Human rights include economic and social rights; the right to form trade unions and to strike; the right to social security and welfare for all, including the protection of mothers and children; the right to education, training and leisure; the right to decent housing in a liveable environment, and the right to economic security. Crucially, there is the right to both full and useful employment in an adequately rewarded job. Unemployment undermines human dignity, threatens social stability and wastes the world's most valuable resource.

Economic rights must not be considered as benefits paid to passive individuals lacking in initiative, but as a necessary base from which to secure the active participation of all citizens in a project for society. This is not a matter of subsidising those on the fringe of society, but of creating the conditions for an integrated society with social welfare for all people.

Democratic socialism today is based on the same values on which it was founded. But they must be formulated critically, both assimilating past experience and looking ahead to the future. For instance, experience has shown that while nationalisation in some circumstances may be necessary, it is not by itself a sovereign remedy for social ills. Likewise, economic growth can often be destructive and divisive, especially where private interests evade their social and ecological responsibility. Neither private nor State ownership by themselves guarantee either economic efficiency or social justice.

The democratic socialist movement continues to advocate both socialisation and public property within the framework of a mixed economy. It is clear that the internationalisation of the economy and the global technological revolution make democratic control more important than ever. But social control of the economy is a goal that can be achieved through a wide range of economic means according to time and place, including:

• democratic, participative and decentralised production policies; public supervision of investment; protection of the public and social interest; and socialisation of the costs and benefits of economic change;

• worker participation and joint decision-making at company and workplace level as well as union involvement in the determination of national economic policy;

• self-managed cooperatives of workers and farmers;

• public enterprises, with democratic forms of control and decision-making where this is necessary to enable governments to realise social and economic priorities;

• democratisation of the institutions of the world financial and economic system to allow full participation by all countries;

• international control and monitoring of the activities of transnational corporations, including cross-frontier trade union rights within such corporations.

There is no single or fixed model for economic democracy and there is room for bold experimentation in different countries. But the underlying principle is clear - not simply formal, legal control by the State, but substantial involvement by workers themselves and by their communities in economic decision-making. This principle must apply both nationally and internationally.

In societies structured in this fashion, and committed to genuine economic and social equality, markets can and must function as a dynamic way of promoting innovation and signalling the desires of consumers through the economy as a whole. Markets should not be dominated by big business power, and manipulated by misinformation.

The concentration of economic power in few private hands must be replaced by a different order in which each person is entitled - as citizen, consumer or wage-earner - to influence the direction and distribution of production, the shaping of the means of production, and the conditions of working life. This will come about by involvement of the citizen in economic policies, by guaranteeing wage earners an influence in their workplace, by fostering open and accountable competition both domestically and internationally and by strengthening the position of consumers relative to producers.

A democratic society must compensate for the defects of even the most responsible market systems. Government must not function simply as the repair shop for the damage brought about by market inadequacies or the uncontrolled application of new technologies. Rather the State must regulate the market in the interests of the people and obtain for all workers the benefits of technology, both in work experience and through the growth of leisure time and meaningful possibilities for individual development.

Source: Socialist International
DECLARATION OF PRINCIPLES OF THE SOCIALIST INTERNATIONAL
Adopted by the XVIII Congress, Stockholm, June 1989, para 56-64