Democratic Theory and Economic Planning

A Critique of Participatory Economics

Authors

  • Jan Philipp Dapprich University of Potsdam, Germany

DOI:

https://doi.org/10.23941/ejpe.v17i2.867

Abstract

The participatory economics model (ParEcon) of Michael Albert and Robin Hahnel represents an important contribution to the debate about feasible alternatives to capitalism. What distinguishes the model from other proposals, like market socialism or cybersocialism, is the central role given to the participation of citizens in economic planning. Citizens form workers’ and neighbourhood consumers’ councils which develop production and consumption proposals. These councils form federations responsible for the coordination of planning. An Iteration Facilitation Board plays a mere perfunctory role in the facilitation of the planning process. This way, economic planning is done entirely by the citizens themselves rather than planners at a central planning agency. The ParEcon model is thereby supposed to be more democratic than historical central planning.
In this paper, I consider whether three possible justifications for democracy can also be used to support this kind of participatory economy. These justifications can be referred to as (1) the protection of citizens’ interests, (2) the revealing of preferences and (3) liberty. In my paper, I show that these three justifications of democracy do not in fact support democratic participation in concrete economic plans in the way envisaged by Albert and Hahnel. Instead of individual plans, citizens should choose general planning procedures. This prevents citizens from being subjected to the arbitrary power of their co-workers or neighbours. Such an algorithmic planning process also prevents central planners from holding arbitrary power since, much like the Iteration Facilitation Board in the ParEcon model, they simply facilitate the prescribed planning process without retaining significant discretion. As I elaborate in the case of consumption planning, citizens can still participate in planning, however they do so through their individual choices rather than a democratic vote. Individual citizens should not require the approval of their neighbours for their personal consumption.

Author Biography

Jan Philipp Dapprich, University of Potsdam, Germany

Jan Philipp Dapprich is a postdoctoral researcher in political theory at the University of Potsdam. His research spans from political philosophy to heterodox political economy. His recent publications include ‘Cybersocialism and the Future of the Socialist Calculation Debate’ (Erasmus Journal for Philosophy and Economics 17(1), 2024), ‘Optimal Planning with Consumer Feedback: A Simulation of a Socialist Economy’ (Review of Political Economy 35 (4), 2023), and ‘Tokens make the world go round: socialist tokens as an alternative to money’ (Review of Evolutionary Political Economy 4, 2023).

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Published

2025-01-18

How to Cite

Dapprich, J. P. (2025). Democratic Theory and Economic Planning: A Critique of Participatory Economics. Erasmus Journal for Philosophy and Economics, 17(2), 73–93. https://doi.org/10.23941/ejpe.v17i2.867