University of Newcastle: SOCA2400 Annotated Analysis of Capitalism

This assignment, prepared for the SOCA2400 course at the University of Newcastle, presents an annotated analysis of alternative models to capitalist liberal democracy. The student examines two key sources: Jessica Gordon-Nembhard's work on building a cooperative solidarity commonwealth and John Restakis's perspective on the cooperative commonwealth and the partner state. The analysis explores concepts such as economic democracy, social economy, and the role of the state in fostering alternative economic systems. The student compares and contrasts these models, highlighting their approaches to addressing issues like inequality, social value creation, and market dynamics, ultimately concluding with a summary of the key differences and similarities between the two perspectives. The assignment emphasizes the integration of industries, revenue sharing, and the shift from consumer to producer societies, while considering the implications of direct democracy and social markets.

Alternative Capitalism
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Table of Contents
ASSESSMENT 3.............................................................................................................................3
INTRODUCTION...........................................................................................................................3
ANNOTATION...............................................................................................................................3
CONCLUSION................................................................................................................................4
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ASSESSMENT 3
INTRODUCTION
Liberal capitalist refers to a democratic system in which government operate under certain
principles of liberalism. The democratic capitalism is economic system in which there is
capitalist and welfare of state. It also provides freedom to individual. However, there are various
alternative to capitalist liberal democracy such as socialism, economic democracy, anarchism,
etc. its importance in essay is that it will provide data on several approaches of socialism. In
addition, it will find out relation between capitalism and democracy and how it leads to
development of economic system. In this essay two annotated sources will be analysed.
ANNOTATION
Source 1 Nembhard, J. G. (2016). Building a cooperative solidarity commonwealth. The Next
System Project. Retrieved from
https://thenextsystem.org/sites/default/files/2017-08/JessicaGordonNembhard.pdf
The author state that cooperative commonwealth is system of integration of all industries
and sector within economy. They support one another in building relationship at local, state and
national level. However, a solidarity system revenue is shared equally. Moreover, the goal is to
develop a sustainable economy by eliminating poverty, inequality, racism, etc. furthermore, in
order to attain solidary economy, there is need to educate and train enterprises. Besides, supply
chain and another network have to be stabilised. Alongside, focus has to be changed from
consumer to producer society. There are some ways to reduce inequality like imposing of wealth
tax and foreign transaction. Also, non predatory policy is necessary in this. The system can be
implemented by connecting solidarity practice with cooperative business. It is necessary to form
policy and apply it. This model is been implemented in US.
In this theory of change is applied where more people practice economic democracy. It
enables in practicing local economic solidarity and collective ownership. here, market prices are
based on needs of people, common good, etc. the collective decision is taken by owners on what
they have to do with profits. The balance within economy is maintained by enterprise level
decision. The economic democracy will transform economic relationships and be engaged at
civil level and know about financial choices, asset building, and collective decision making.
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Source 2 Restakis, J. (2017). Cooperative commonwealth & the partner state. The Next System
Project. Retrieved from https://thenextsystem.org/sites/default/files/2017-08/JohnRestakis-1.pdf
Here, author reflect that cooperative commonwealth is based on principle in economic
democracy as common good. The purpose is to serve human solidarity, nurture community, etc.
in this an approach that is followed is civil mobilisation and empowerment. In this role of state is
defined. however, there are 2 approaches in it first is challenging and reforming established role
and operation of state via democracy. The process is known as partner state. The second
approach is self organising and direct democracy by people and society at local and national
level. This process is known as stateless democracy. The social economy is different concept in
it. There is change in mechanism of production of social value. In a Partner State paradigm, the
private and public sectors retain essential functions in the economy and in society. Social
economy is not considered as exchange of products for personal needs whereas it is known as
using social relation to generate value for collective needs.
The generative democracy refers to state where people are directly engaged in production
of products for personal and other well being. Social market is entirely based on generating
capital via social shares. Cooperatives are a form of social economy organization whose surplus
is collectively owned and utilized by its members for their mutual benefit. Here, an example is
taken of Japan where banking system is based on social currency. The major challenge here is
controlling capital at national level. It will be useful in operating within commercial economy.
CONCLUSION
It is summarised that there are various alternative to capitalist liberal democracy such as
socialism, economic democracy. In this study state cooperative commonwealth is system of
integration of all industries and sector within economy but on contrary cooperative
commonwealth is based on principle in economic democracy as common good. Also, in first one
focus is changed from consumer to producer society. Whereas in second it is shifted from direct
democracy to social market. Furthermore, market prices are based on needs of people whereas in
social economy it is based on common goal. There are two state in it that are partner and welfare
state.
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