Politics And Markets: The World's Political-economic Systems

by Charles E. Lindblom

Book Overview

Politics and Markets : The World's Political Economic Systems This description may be from another edition of this product.

• Format: Paperback
• Language: English
• ISBN: 0465059589
• Release Date: July 1980
• Publisher: Basic Books
• Length: 416 Pages
• Weight: 0.80 lbs.

Customer Reviews

Power of Corporations in Democracies

The relationship between business and democracy is often murky. As such, operationalizing the relational power between these entities has long been the task of political economists. Lindblom and Vogel set out to examine the issue of business power in democratic political systems; each coming to a different conclusion. Lindblom argues that big business and corporations do not "fit" with the idea of democracy. He supports this proposition by examining the many different types of politico-economic systems, ultimately breaking them down into a two-by-two matrix. In his examination, Lindblom finds that all democratic systems are characterized by a free-market economic arrangement. The author explains this anomaly by arguing that democratic systems are dependent on the market and private enterprise (162). He then builds on this foundation to demonstrate the ways in which corporate power maintains control or at least a significant amount of power, in democratic systems. Lindblom begins to shore up this premise by examining democracy from a historical perspective. He argues that although many hold that democracy (or polyarchy) is a system of popular rule, it in fact is a system established to ensure the personal freedoms of individuals. Often these liberties exist in the form of economic freedoms, exemplified by participation in the free market. He writes, "Polyarchies were established to win and protect certain liberties: private property, free enterprise, free contract and occupational choice" (164). Under polyarchy, the liberties illustrated here were to be protected from the infringement of the governing authority. Once Lindblom captures the idea that the purpose of polyarchy is to protect the liberties of the people, he poses the question as to why the people never attempt a system of central planning in order to address collective problems. Lindblom suggests that such an experiment has never been undertaken because the process "is subversive of the existing system, specifically of the prerogatives, privileges, and rights of the business and property-owning groups" (168). It is at this point that Lindblom makes the strong move to suggesting that corporate business interests possess a good deal of control under democratic governments. He writes: "We must at this point consider the possibility that existing polyarchies are not very democratic, that political debate in them is not very free, and that policy making in them is actually in the hands of persons who want to protect the privileges of business and property" (168). Lindblom supports this argument of examining the advantaged power of business. In a system of centralized planning, all decisions regarding the production and dispersion of good and services (all things economic) would be left up to a centralized authority. However, in a polyarchy, many of the economic decisions affecting a nation are made by those in control of the business arena. Lindblom suggests that in f