Equality, Participation, Transition: Essays in Honour of Branko Horvat

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Mario Domenico Nuti 101 Blasi, J. and Kruse, D. (1991) The New Owners, New York: Harper Business. Horvat, B. (1982) The Political Economy of Socialism: A Marxist Social Theory, Armonk, N.Y.: M. E. Sharpe, Inc. Jones, D. C. (1987) ‘Productivity Effects of Worker Directors and Financial Participation by Employees in the Firm: the Case of British Retail Cooperatives’, Industrial and Labour Relations Review, 41: 79–82. Jones, D. C. (1996) ‘Privatisation and Restructuring in Russia: a Review and Micro Evidence from St. Petersburg’, LBS Conference Paper, 19–20 September. Meade, J. E. (1993) Liberty, Equality and Efficiency – Apologia pro Agathotopia Mea, London: Macmillan. Nuti, D. M. (1997) ‘Employeeism: Corporate Governance and Employee Share Ownership in Transition Economies’, in M. I. Blejer, and M. Škreb (eds.), Macroeconomic Stabilisation in Transition Economies, Cambridge: Cambridge University Press, pp. 126–54 Rosen, C., Durso, G. and Rothblatt, P. (1990) International Developments in Employee Ownership, Oakland: National Centre for Employee Ownership. Ward, B. (1958) ‘The Firm in Illyria: Market Syndicalism’, American Economic Review, 48: 566–89. Weitzman, M. L. (1984) The Share Economy, Cambridge, Mass: Harvard University Press.
7 Employee Involvement and the Modern Firm* Tea Petrin and Alesa Vahcaica 7.1 Introduction In the early 1970s the topic of workers’ participation attracted great attention among economists and also among other social scientists. Undoubtedly, professor Horvat has been the leading economist who devoted his rich scientific work to the development of the concept of workers’ self-management in the Marxist tradition. He has also popularized the concept among the Western and Eastern socialist economists and has had a significant number of followers particularly among his students. He presented his ideas in a large number of works published in the West as well as in the East. Here we will refer mainly to his seminal work The Political Economy of Socialism (Horvat, 1982). With the fall of socialism it may seem that his work was lost. This, however, is not the case. There are at least two reasons for that. First, Professor Horvat stressed that certain conditions must be fulfilled for the implementation of workers’ self-management: ‘(i) Long industrial tradition … , (ii) Long tradition in political democracy … , (iii) High personal incomes … , (iv) Short working week … , and (v) High level of education … ’ (Horvat, 1982: 218). He stressed that the implementation of self-management, due to the highly demanding set of factors, is possible only in highly developed societies. This is obviously the old Marxist conclusion that socialism can potentially be successfully introduced in the most developed countries. * This contribution is based on the paper presented at the 9th Conference of the International Association for the Economics of Participation, Clifton Hill House, University of Bristol, Bristol, 26–8 June 1998. 102
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First published in Great Britain 20
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vi Contents 9 Self-Management, Empl
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List of Figures 02.1 First Law of O
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x Foreword institution most dear to
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Notes on the Contributors Ivo Bića
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xiv Notes on the Contributors membe
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xvi Notes on the Contributors done
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xviii Notes on the Contributors pri
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Introduction: Branko Horvat - Beyon
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xxii Introduction Dame (1978), Univ
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xxiv Introduction theory led him to
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xxvi Introduction though friendly,
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xxviii Introduction The second pape
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xxx Introduction disciplines such a
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Branko Horvat: Select Bibliography
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xxxiv Branko Horvat: Select Bibliog
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xxxvi Branko Horvat: Select Bibliog
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xxxviii Branko Horvat: Select Bibli
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2 Horvat’s Contributions to Econo
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10 Horvat’s Contributions to Econ
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2 Individual Initiative, Entry and
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28 Egalitarianism On Its Own Thomas
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30 Egalitarianism On Its Own projec
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32 Egalitarianism On Its Own absenc
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34 Egalitarianism On Its Own tithin
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36 Egalitarianism On Its Own what s
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38 Egalitarianism On Its Own 100% 9
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40 Egalitarianism On Its Own contri
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42 Egalitarianism On Its Own anothe
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44 Egalitarianism On Its Own politi
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46 Egalitarianism On Its Own Eckel,
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4 Determinants of Cross-Country Inc
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152 Self-Management, Employee Owner
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10 Privatization and Enterprise Per
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164 Privatization: Evidence from Es
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11 Growth Theory and Transition Eco
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186 Growth Theory and Transition Ec
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202 Index economic growth - continu
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204 Index Horvat, Branko - continue
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206 Index neoclassical economics -
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208 Index ‘third way’, 88, 104
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Equality, Participation, Transition: Essays in Honour of Branko Horvat

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