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• W822921768 abstract "WORKER SELF-MANAGEMENT: AN ALTERNATIVE TO WAGE-LABOR IN THE HISTORY OF ECONOMIC THOUGHT, BY ZHANG JIAXIN Worker Self-Management: An Alternative to Wage-Labor in History of EconomicThought (in Chinese), by Zhang Jiaxin, Beijing, Social Sciences Academic Press, 2013, vi + 262 pp., ¥58 (paperback), ISBN 9787509743225President Tito paced up and down as though completely wrapped in his own thoughts. Suddenly, he stopped and exclaimed, Factories belonging to workers- something that has never been achieved! (Djilas 1969, 1).In 1950, Yugoslavia embarked on an historic experiment, a form of market socialism featuring worker-self-management. For three decades, results were impressive. Between 1952 and 1960, Yugoslavia recorded highest growth rate of any country in world. For period 1960-80, Yugoslavia ranked third in growth per capita among low- and middle-income countries. In 1950, Yugoslavia was-as it had been since its creation in 1918-a poor, underdeveloped country. By 1980, Yugoslavia had attained a standard of living approximately two-thirds that of Italy. Even Harold Lydall, a major critic of Yugoslav experiment, writing in 1984, concedes that Yugoslavia, under its system of 'socialist self- management,' has achieved a high rate of economic growth of both output and consumption. The average standard of living has changed all out of recognition in past thirty-five years (Lydall 1984, 183).Of course, Tito was wrong about belonging to workers being something never having been achieved before-although never before had there been an attempt to make worker-self-management a core feature of an entire economy. As Zhang Jiaxin points out, Rochdale Pioneers set up a worker-owned cooperative in 1844, seeing it as a prototype for a new form of economic organization. Marx himself, in his 1864 Inaugural Address to Working Men's International Association, praised the cooperative factories raised by unassisted efforts of a few bold hands, value of which cannot be over-rated, for they have shown that production on a large scale, in accord with behests of modern science, may be carried on without existence of a class of masters employing a class of hands.In 1956, another historic experiment began. In town of Mondragon, in Basque region of Spain, a Catholic Don Jose Arizmendiarieta-the Red priest, as he was called in local conservative circles-persuaded five of his former students, who had become professional engineers, and 18 other workers, to set up a cooperative factory to manufacture small cookers and stoves. In 1959, again at priest's instigation, a cooperative bank was formed, with a mission to promote cooperatives in region. By 1980, there were 70 cooperatives in Mondragon group, engaging 15,000 worker-owners.Academic interest in worker-self-management also began in 1950s and developed rapidly throughout next three decades. Real-world experiments were underway. Economic theory had to catch up. The first theoretical model of a worker-self-managed economy was published by Benjamin Ward in 1958. Controversies and refinements ensued, engaging, among others, Nobel-laureate economist James Meade. These important debates and developments are explored in this volume.But then came the collapse of communism, first in Eastern Europe, then Soviet Union, followed by break-up of Yugoslavia (which, as even Lydall admits, had nothing to do with worker self-management). Prominent Western academics declared the End of History-the final triumph of liberal capitalism and representative, multi-party democracy. (China was seen to be, whatever its protestations to contrary, an emerging capitalist country that would soon enough adopt a normal political system.) By end of 1990s, neoconservative intellectuals and politicians were confidently proclaiming A New American Century. Interest in worker-self-management evaporated, at least in respectable circles. …" @default.
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