| Type | Alternative economic system |
| Emphasis | Community decision-making, cooperative ownership, and sustainable development |
| Balance sought | Economic efficiency, equality, social democracy, and environmental sustainability |
| Role of markets | Limited or nonexistent |
| Resource allocation | Direct democracy |
| Price or wage setting | Direct democracy |
| Project prioritization | Direct democracy |
| Technical coordination | AI and blockchain |
Democratic planning is an alternative economic system that emphasizes community decision-making, cooperative ownership, and sustainable development. This system employs direct democracy to allocate resources, making it a departure from conventional economic systems such as capitalism and socialism. In a democratic plan, there is minimal or no role for markets, and private ownership is limited in scope or nonexistent.
The roots of democratic planning can be traced back to various social experiments and movements throughout history. Some examples include the ancient Greek polis, medieval guilds, and more modern cases like the Paris Commune, Kibbutzim, and Mondragon Corporation.
The system gained traction in the wake of global challenges like the economic crisis of 2008, climate change, and growing wealth inequality, as critics and activists sought to find alternative ways to organize society and distribute resources. Democratic planning emerged as a potential solution, emphasizing democracy, equality, and sustainability.
At the heart of democratic planning is the community assembly. These assemblies represent a form of direct democracy, where community members participate in decision-making processes. They vote on matters such as resource allocation, production priorities, and key societal issues.
The production units within democratic planning are either worker cooperatives or democratic firms, where workers own and manage their workplaces collectively. In this system, workers have a say in the direction and management of their enterprises. Consequently, there is a reduced disparity between workers and management, compared to traditional corporations.
Public goods and infrastructure are provided by the community as a whole, with decisions made through a democratic process. This ensures fair access to essential services such as healthcare, education, and transportation.
In some versions of democratic planning, a limited market mechanism may still exist. However, the orientation is fundamentally different from capitalist market economies. The community and assembly, rather than the market, make decisions about the allocation of resources and the determination of prices.
Currencies and monetary policy are planned or democratically decided upon by the community. For instance, there might be a single currency managed by a central bank or community-issued currencies for specific purposes.
Technology plays a critical role in making democratic planning work. Artificial intelligence, data analytics, and blockchain technology facilitate communication, inventory management, and resource allocation. In a large-scale democratic economy, these tools aid in coordinating production and distribution effectively and efficiently.
Democratic planning focuses on sustainable development and responsible resource use. The system aims for a balanced, sustainable economy that preserves the natural environment and prioritizes the quality of life over unlimited growth.
A central tenet of democratic planning is resource conservation and the circular economy. It focuses on the reuse, recycling, and repair of resources, thereby minimizing waste and promoting a more sustainable economic model.
Democratic planning is committed to promoting social equality and democracy. Labor rights, employment, and wealth distribution are decided upon by the community assemblies, ensuring fairness and equal opportunity.
Social services and public goods are also allocated democratically, allowing universal access to housing, healthcare, education, and transportation. This system helps reduce wealth inequality and promote a more inclusive society.
Democratic planning communities interact through an interdependent network based on trade and aid relationships. International cooperation is critical in addressing global challenges like climate change and peace.
Given the focus on equality, democracy, and sustainability in democratic planning, bilateral exchanges and collaborations revolve more around achieving these objectives rather than pursuing profit alone. This allows the participants to cooperate on key issues, such as mitigating climate change, while also sharing resources and expertise.
In conclusion, democratic planning is an alternative economic system that emphasizes community decision-making, cooperative ownership, and sustainable development. It relies on direct democracy to allocate resources, prioritize projects, and set prices or wages. By using technology and relying on the community, democratic planning aims to balance economic efficiency with equality, social democracy, and environmental sustainability.
