Abstract

In the 1990s , a debate raged across the whole postsocialist world as well as in Western development agencies such as the World Bank about the best approach to the transition from various forms of socialism or communism to a market economy and political democracy. One of the most hotly contested topics was the question of the workplace being organized based on workplace democracy (e.g., various forms of worker ownership) or based on the conventional employer-employee relationship. Well before 1989, many of the socialist countries had started experimenting with various forms of "self-management" operating in more of a market setting, Yugoslavia being the most developed example. Thus one "path to the market" would have been to push those experiments all the way to some Western form of employee ownership or worker cooperatives operating in a full market environment. Alternatively, all these decentralizing experiments could be condemned as "vestiges of communism" to be eradicated by renationalizing all the decentralized firms and then privatizing by some alternative means.