Participatory economics

Participatory economics, often abbreviated Parecon, is an economic system based on participatory decision making as the primary economic mechanism for allocation in society. In the system, the say in decision-making is proportional to the impact on a person or group of people. Participatory economics is a form of socialist decentralized planned economy involving the common ownership of the means of production. It is a proposed alternative to contemporary capitalism and centralized planning. This economic model is primarily associated with political theorist Michael Albert and economist Robin Hahnel, who describe participatory economics as an anarchist economic vision.[1]

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