What is "participatory economics"

alt. A proposed alternative to capitalism that uses participatory decision making. n. A proposed alternative to capitalism that uses participatory decision making.

Participatory economics, often abbreviated parecon, is an economic system based on participatory decision making as the primary economic mechanism for allocating the factors of production and guidance of production in a society. Participatory decision-making involves the participation of all persons in deciding issues in proportion to the impact such decisions have on their lives. Participatory economics is a form of decentralized economic planning and socialism involving the common ownership of the means of production. It is a proposed alternative to contemporary capitalism and central planning. This economic model is primarily associated with the proposals of political theorist Michael Albert and economist Robin Hahnel, who describe participatory economics as an anarchist economic vision.

The underlying values that parecon seeks to implement are equity, solidarity, diversity, workers' self-management and efficiency (defined as accomplishing goals without wasting valued assets). The institutions of parecon include workers' and consumers' councils utilizing self-managerial methods for making decisions, balanced job complexes, remuneration based on individual effort, and participatory planning.

Albert and Hahnel stress that parecon is only meant to address an alternative economic theory and must be accompanied by equally important alternative visions in the fields of politics, culture and kinship. The authors have also discussed elements of anarchism in the field of politics, polyculturalism in the field of culture, and feminism in the field of family and gender relations as being possible foundations for future alternative visions in these other spheres of society. Stephen R. Shalom has begun work on a participatory political vision he calls " par polity". Both systems together make up the political philosophy of Participism. Participatory Economics has also significantly shaped the interim International Organization for a Participatory Society.