Modern Capitalism: Privatization, Employee Ownership, and Industrial Democracy

Modern Capitalism: Privatization, Employee Ownership, and Industrial Democracy

Modern Capitalism: Privatization, Employee Ownership, and Industrial Democracy

Modern Capitalism: Privatization, Employee Ownership, and Industrial Democracy

Synopsis

The privatization revolution, profit or revenue sharing, and employee participation in enterprise decision making are some of the major characteristics of modern capitalism. Such features can be observed in almost all countries, including Western developed, Third World, and primarily ex-socialist countries. The diffusion of stock ownership, the promotion of economic and industrial democracy, and the globalization of production and finance present new challenges and opportunities and reflect important structural economic and political changes. This book examines all these issues and provides valuable information and suggestions for labor-management relations and international business cooperation.

Excerpt

One of the most important challenges confronting modern societies is the need to promote economic growth under expanding democratic rights. Modern capitalism tends to reduce state or private monopolization and wealth concentration by way of privatization, employee ownership, and growing numbers of stockholders. The new electronic communications era and social awareness generate a new economic system with political freedom and participatory industrial democracy on a global scale.

In many market and ex-planned economies, where nationalizations were popular in the past, sales of state-owned assets and government disengagement in general became necessary in recent years. The waves of privatization, profit or revenue sharing, and employee participation in enterprise decision making engulfed almost all countries, including Western developed, Third World, and mainly ex-socialist countries.

Such a trend is associated with a more effective cooperation of labor and management, better production incentives, higher productivity, and ultimately a better distribution of income and wealth. Through the partnership between management and labor and the system of large-scale economic democracy, dividends of economic growth are broadly shared, and skills and communications are improved.

Although many employee involvement programs are genuine and lead to long-run participation of employees in enterprise decisions, some of them are ephemeral and superficial. They are created by the managements of companies to enjoy tax and other benefits and to reduce or eliminate . . .

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