Know What Economic Democracy Is And What Are Its Main Postulates

The economic democracy emerges in response to the failed democracies. They show their weaknesses both in political terms and economic and social inequality, and environmental degradation. This concept proposes to extend democracy to the financial system.

Political, Social And Economic Democracy: Definition

Democracy is a complex concept whose origins date back to classical antiquity. Over time it has evolved and acquired a meaning more in line with modern societies.

Although it is one of the best tools of government that we have, democracy is not perfect. It has become an ally of capitalism that leaves out a significant percentage of the world’s population.

It is not the same to speak of political, social, or economic democracy. The three meetings are not always fulfilled. When we talk of political democracy, we refer to a form of political and social organization. A type of government that – ideally – rests power on the entire citizenry.


In a democracy, if it works appropriately, decisions of an organizational or political nature are in the hands of the people who make up that group or who are citizens of them in the case of nation states.

I make this distinction because democracy is a way of making decisions that affect a group. It can be applied to nations, provinces, municipalities, and other organizations, such as communities, self-managed companies, political organizations.

It is also important to emphasize that there are direct and indirect democracies. The clearest and most primary example of direct democracy is the assemblies. There, each of the participants directly expresses their decision. In more advanced terms, in the countries, it occurs through participation channels such as referenda.

The indirect or representative democracy, however, is expressed through representatives. These mechanisms are not exclusive, but in states with efficient democracies, they combine.


Political democracy is commonly associated with social democracy, but a series of conditions must be met for it to exist. There has been the rule of law, universal suffrage, clean and periodic elections, publicity of government acts, and control systems.

We are currently witnessing growth in failed democracies. They are those that do not meet these requirements and show subjugation to freedoms. Some of these are the abuse of power, repression, and the arrest of people for political reasons.

To deal with these kinds of problems, some propose solutions such as global democracy. Considering that we live in a world of constant global expansion, they think that models like this would allow us to face global ecological and social problems and unify specific heterogeneity in preferences and build a global civic conscience.

Anyway, it seems at least a bit illusory for the moment to think of political systems in such globalized terms. The world, no matter how more and more connected it may be, luckily continues to have significant social and cultural diversity from which we still have much to learn.

Instead, economic democracy appears branch that complements and improves what already exists in terms of political and social democracy. Economic democracy is a political, philosophical, and social movement that proposes new ways to confront inequality and environmental degradation.

What is Economic Democracy? Main Fundamentals

In political democracy, the rule is that everyone has access to the channels of participation and decision. Economic democracy seeks to ensure equal opportunities in material terms.

In other words, it proposes equitable access to the means of production, economic decisions, wealth, and development possibilities. This form of democracy aims to go beyond the capitalist market economy without eliminating it, only mitigating its adverse effects.

Thus, economic democracy maintains certain institutions, such as the market for goods and services. But it postulates replacing most traditional salaried work with cooperative work and replacing the uncontrolled financial needs with a mechanism that manages investment in a more democratic way.

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