COUNTERING ECONOMIC INJUSTICE THROUGH PROPERTY-OWNING DEMOCRACY

Miloš Kovačević; Andrej Pavićević; Stefan Marić

doi:10.2298/FID250427011K

Authors

Miloš Kovačević Faculty of Philosophy, University of Belgrade
Andrej Pavićević Institute for Economic Democracy in Serbia
Stefan Marić Faculty of Economics and Business, University of Belgrade

DOI:

https://doi.org/10.2298/FID250427011K

Keywords:

economic injustice, property-owning democracy, economic democracy, coupon capitalism, employee ownership, predistribution, economic inequality

Abstract

The paper provides theoretical and practical examination of economic injustice. In the first part of the paper the specific conception of a property-owning democracy is developed. Strategically combining two institutional models – worker-controlled economic democracy for small and medium enterprises and broadly distributed coupon capitalism for large corporations – the dual approach to property-owning democracy addresses the limitations of each model when implemented separately. In the second part of the paper, employee buyouts are evaluated, particularly through the employment of the eurESOP model, as a concrete transition mechanism toward property-owning democracy. Using Serbia’s post-transition economy as a case study, where small and medium enterprises face imminent succession crises, the analysis demonstrates how employee ownership can simultaneously solve business continuity challenges while advancing economic democracy. In conclusion, the required legal and fiscal reforms for the improvement of the enabling institutional environment for democratic ownership transitions are spelt out.

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