Centralization Tendencies in Participatory Planning

Abstract

In the new debate about economic planning, the question of whether new forms of comprehensive planning might inadvertently encourage a relapse into authoritarianism must be central. The article analyzes the proposal of a “Participatory Economy” because it is the most sophisticated model for comprehensive planning without the need for centralized institutions. Planning is carried out in a participatory manner, enabling worker and consumer councils to coordinate their interrelated economic activities themselves. The danger of a relapse into authoritarianism appears to be averted. However, the paper argues that the Participatory Economy doesn’t live up to the goal it set for itself to a satisfying degree, because it requires more centralized institutions than it initially suggests. Centralization tendencies arise for strong normative reasons and are therefore difficult to avoid. Even worse, council-democratic remedies to centralization tendencies don’t offer an easy answer, as these remedies come with their own set of problems.