PARTICIPATORY ECONOMICS Meaning and
Definition
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Participatory economics, also known as parecon, is an economic system that emphasizes the active involvement and decision-making power of all individuals within an organization or community. It is a model of economic organization and planning that seeks to establish a more equitable and participatory society by decentralizing power and promoting democratic decision-making.
In participatory economics, the allocation of resources, production decisions, and distribution of goods and services are made collectively by all stakeholders, including workers, consumers, and community members. The decision-making process is rooted in self-management and participatory democracy, ensuring that all those affected by a decision have a say in it.
In a participatory economics system, organizations are structured horizontally, with decision-making power distributed among all members. This includes workplace democracy, where workers have control over their own working conditions, production quotas, and the distribution of profits. Additionally, consumers and community members are directly involved in determining consumption patterns, setting prices, and allocating resources, which helps to address issues of inequality and social justice.
Participatory economics seeks to prioritize human and environmental needs, focusing on the fulfillment of basic needs for all individuals rather than the growth of profit or gross domestic product. By providing equal opportunities for decision-making and fostering a sense of collective ownership and responsibility, participatory economics aims to create a more just and sustainable economic system.
Etymology of PARTICIPATORY ECONOMICS
The term "participatory economics" was coined by Michael Albert and Robin Hahnel in the early 1990s. The etymology of the word can be broken down as follows:
1. Participatory: The word "participatory" is derived from the Latin word "participare", which means "to share" or "to take part". It is formed by combining the root "parti-" which means "part" or "piece", and the suffix "-cipe" meaning "to take" or "to receive". In the context of economics, "participatory" refers to an economic system in which individuals actively take part in decision-making processes and the distribution of resources.
2. Economics: The word "economics" has its roots in the Ancient Greek language.
