NOTES

CHAPTER 2

[1] Mueller, Dennis, Geoffrey Philpotts, and Jaroslav Vanek, “The Social Gains
from Exchanging Votes: a Simulation Approach,” Public Choice, Fall 1972.

CHAPTER 3

[1] Meade, James, Agathotopia: the economics of partnership, (Aberdeen,

Aberdeen U. Press, 1989).

CHAPTER 5

[1] Freire, Paulo, Pedagogy of the Oppressed (New York, Continuum, 1970,
1981).

CHAPTER 7

[1] Soros, George, “The Capitalist Threat”, Atlantic Monthly, vol. 279, 2
(February 1997), pp.45-56.

CHAPTER 10

[1] Freire, Pedagogy of the Oppressed.

CHAPTER 11

[1] See Vanek, “Terminal Accumulation: an aspect of the social pathology of late
capitalism,” unpublished, 1977.

CHAPTER 12

[1] United Nations Development Program (UNDP), Human Development Report,

1992.

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 [2] Illich, Ivan, La Convivialite (Paris, Seuil, 1973).

CHAPTER 14

[1] Interview with Pope John Paul II, The Guardian, 3 November 1993.

[2] Doucouliagos, Chris, “Worker Participation and Productivity in Labor-

Managed and Participatory Capitalist Firms: a Meta-Analysis,” Industrial and Labor
Relations Review, vol. 49, 1 (Oct. 1995).

CHAPTER 16

[1] See Oakeshott, Rober, “Mondragon: Spain’s Oasis of Democracy,” in J.

Vanek, ed., Self-Management: Economic Liberation of Man (Harmondsworth, England,
Penguin, 1975) pp. 290-296.

[2] Dreze, Jacques, Labour management, contracts, and capital markets: a general
equilibrium approach (Oxford, UK and New York, Blackwell, 1989).

[3] On this subject, see the BBC video, “The Mondragon Experiment” (Horizon
Productions, 1979).

[4] Vanek, The Labor-Managed Economy: Essays (Ithaca, NY, Cornell U. Press,
1977), Chap. 11, pp. 213-231.

CHAPTER 17

[1] See Freire, Pedagogy of the Oppressed.

[2] See also Thomas, Henk, and Chris Logan, Mondragon: an Economic Analysis
(London and Reading, MA, Allen and Unwin, 1982); and Whyte, William F. and
Kathleen K. Whyte, Making Mondragon (Ithaca, NY, ILR Press, 1988).

CHAPTER 19

[1] Vanek, The General Theory of Labor-Managed Market Economies (Ithaca,

NY, Cornell U. Press, 1970). For a later examination

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of Yugoslavia, see Vanek, “The Yugoslav Economy: an Ex-post Evaluation,” Cuadernos
del Ester, No. 5, 1992.

[2] Blinder , Alan, ed., Paying for Productivity (Washington, DC, Brookings,
1990).

[3] Articles in Blinder, op.cit.; Weitzman, Martin L., and Douglas L. Kruse,
“Profit-sharing and Productivity,” pp. 95-141; Levine, David I., and Laura D’Andrea
Tyson, “Participation, Productivity, and the Firm’s Environment,” pp. 183-243.

[4] Doucouliagos, loc. cit. 44.

[5] International Labour Office, Workers’ management in Yugoslavia (Geneva,

1962). The (unnamed) author of this pioneering study is my brother Jan Vanek.

[6] See Berman, Katrina, Worker-Owned Plywood Companies, (Washington

State U. Press, 1967).

[7] Defourny, Jacques, “Une Analyse financiere comparee des cooperatives des
travailleurs et des enterprises capitalistes en France,” Annals of Public and Cooperative
Economics, 57, (1986).

[8] Thomas and Logan, op. cit. Melman, Seymour, “Industrial Efficiency under
Managerial versus Cooperative Decision-making,” Review of Radical Political
Economics, vol. 2, 1 (Spring, 1970).

[9] See also Dreze, op. cit.

[10] See Vanek, General Theory of Labor-Managed Market Economies, and The
Labor-Managed Economy:Essays.

[11] Vanek, The Labor-Managed Economy:Essays, Chap. 14, pp. 256-272, with
Andrew Peinkos and Alfred Steinherr.

[12] Meade, James E., “Labor-Managed Firms in Conditions of Imperfect

Competition,” Economic Journal, vol. 84 (December 1974).

[13] Defourny, loc. cit.

[14] BBC, op. cit.; Whyte and Whyte, op. cit.

[15] See Pateman, Carole, Participation and Democratic Theory (Cambridge U.

Press, 1970).

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CHAPTER 20

[1] A version of this chapter is forthcoming in a festschrift for Prof. Branko

Horvat. Another historical note is appropriate here, to the effect that a graduate student
of mine, at Harvard and then Cornell, Ms. Therese Jeanneret of Santigao, Chile was
teaching economics in Santiago prior to the Peruvian reforms and sharing with her
students the then-“new” ideas on economic democracy and selfmanagement. One of her
students was Luis Barandiaran, a general of the Peruvian army, brother of Jorge
Barandiaran, also a general and Minister of Agriculture. The exposure to these ideas on
the part of high officers of the Peruvian government and fellow generals of Persident
Velasco, to my best knowledge, led to the attempt of introducing a form of economic
democracy in that country.

CHAPTER 23

[1] See, for example, our home refrigerator-icemaker reported in “A Solar

Ammonia Absorption Icemaker,” Home Power, Issue 53, June/July 1996, Pp.20-23.

CHAPTER 25

[1] A version of this chapter was published in Economic Analysis: Journal of

Enterprise and Participation, vol. 2, 3 (1999), Pp. 209-221.

[2] Vanek, Jaroslav, “Beware of the Yeast of the Pharisees,” Economic Analysis
and Worker’s Management, vol. XXIV, 1, (1990), pp. 113-124.

[3] The EE of efficiency locus, playing a significant role in the theoretical

analysis of democratic/cooperative firms, is defined, for a production function using
inputs of capital and labor, as the locus in the labor-capital plane of all points
corresponding to maximum factor productivities along a ray defined by a constant
capital-labor ratio. For more detailed analysis see Jaroslav Vanek, General Theory of
Labor-Managed Market Economies (1970). It may also be instructive to realize that all
the points of the EE locus correspond, in the context of the capitalist theory of the firm, to
the minimum points of the average cost functions derived for alternative factor cost
parameters.

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CHAPTER 27

[1] The Father Speaks to His Children (L’Auila, Italy, “Pater” Publications,
1995). Available from “Casa Pater” Centers: C. P. 135, L’Aquila, Italy; Box 1260,
Emmitsburg, MD 21727, USA; 9929 Clarkway Dr., RR 8, Brampton, Ontario L6T 3Y7,
Canada.

[2] Sister Eugenia Ravisio came from a peasant family. After a few years of
work in a factory, she entered at the age of 20 the congregation of Our Lady of the
Apostles. Given her most unusual personality, she was elected mother superior of the
order at the age of twenty-five, started some seventy educational and religious centers
around the world and created a “Lepers’ City” project in Ivory Coast covering some
200,000 square miles territory. She died in 1990.

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