Britain is an economic dictatorship
 
Time for economic democracy
 
We expect political democracy. Why not economic democracy too?
 
Peter Tatchell
 
Huffington Post - London - 29 November 2011
 
http://www.huffingtonpost.co.uk/peter-g-tatchell/strikes-30-november-time-for-democracy_b_1117266.html
  
 
 
Up to two million trade union members went on strike on Wednesday, in protest 
against the government's attack on pensions and cuts in public services. Their 
grievances are real. But their solutions don't go far enough. Pressing the 
government for fairness isn't the answer. Staging a protest is second best. 
These are reactive, defensive responses to fundamental flaws and failings in 
the way our economy is organised and run.
 
The perennial failing of most trade unions is that their horizons are so 
limited. They seek a better deal for their members within the economic status 
quo, when the real solution is to reform the system of economy that, by its 
very nature, leaves the vast majority of working people powerless, 
disenfranchised and marginalised. When it comes to the economy, the average 
person has no meaningful say in the decisions that affect their jobs, wages, 
pensions and working conditions.
 
We expect political democracy. Why not economic democracy too?
 
Behind the cosy democratic facade, Britain is a cut-throat economic 
dictatorship. A rich and powerful economic elite makes all the key economic 
decisions, excluding millions of employees and consumers.
 
Our country's democratic political transformation - pushed forward by the 
Levellers, Chartists and Suffragettes - has never been matched by a 
corresponding economic democratisation.
 
'One person, one vote' has been won in the political sphere (albeit 
imperfectly) but not in the realm of economics. Britain's democratic 
revolution, begun four centuries ago, remains unfinished.
 
It is time to put economic democracy on the political agenda; to bring the 
economy into democratic alignment with the political system.
 
Extending the economic franchise is about democracy and justice. It can help 
create a greater plurality and diversity of economic power, and also lay the 
foundations for a more equitable and productive economic partnership between 
all those who contribute to wealth creation and to the provision of public 
services, from local councils to the NHS.
 
Whatever people think of the current economic system, one thing is 
indisputable: it is characterised by an absence of democracy, participation, 
transparency and accountability. Employees and their representative bodies - 
the trade unions - are frozen out of economic influence and decision-making.
 
Big business rules. The captains of industry, commerce and finance have almost 
total power. They run their enterprises on totalitarian lines. All 
decision-making is concentrated in the hands of a tiny, privileged cabal of 
major shareholders, directors and managers. They alone determine how the 
company operates. Employees - without whom no wealth would be created and no 
institution could function - are powerless and disenfranchised. They are little 
more than glorified serfs of the moneyed classes and their government.
 
Not much has changed in two centuries of capitalism. There have been no major 
democratic reforms of the economy. Although millions of people bought shares in 
privatised public enterprises like BT, their individual holdings are minuscule 
and marginal. They have no real influence. Big corporate interests retain the 
decisive economic power. This power is as centralised and autocratic as ever. A 
few determine the fate of the many.
 
The advent of nationalised public industries, utilities and services changed 
nothing. They have been run in much the same centralised, dictatorial manner as 
their privately-owned counterparts. There was never any economic democracy in 
the state-run railways or coal mines. The system of ownership changed but not 
the system of management. The bosses of public utilities and nationalised 
industries were almost as powerful as the captains of private enterprise. Their 
employees remained locked out of the decision-making process. It was state 
capitalism, not socialism. The Labour Party and the trade unions have made a 
huge mistake in over-emphasising public ownership, to the neglect of public 
control.
 
The same applies today in the NHS and other public services. They are 
administered according to the classic capitalist model of top-down command and 
control. NHS big-wigs have almost as much power as private medical bosses. 
Doctors, nurses and ancillary staff are excluded from policy-making in both 
public and private medicine.  
Their years of accumulated hands-on, frontline service knowledge is disregarded 
when it comes to policy-making. This is a huge waste of human resources.
 
Wherever we look, in all sectors of the economy, the democratic deficit is 
universal. Power is concentrated and wielded in ways that is contrary to the 
democratic, egalitarian spirit of modern, twenty-first century Britain. The 
time for economic democracy is now.
 
* For more information about Peter Tatchell's human rights and social justice 
campaigns: www.petertatchell.net


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