Today, 'democratic socialism' places significant emphasis on cooperative enterprises and economic democracy as integral elements of its approach to restructuring the economy and society. These concepts are seen as vital for reducing economic inequality, increasing worker participation in decision-making, and promoting a fairer distribution of wealth. The ideas of democratic socialism have evolved since the 1960s when, at that time, there was more discussion about the mix of socialism and capitalism. Now, there are a lot more ideas and alternative incorporated into the thinking around democratic socialism.

The modern ideas of democratic socialism encompass a wide range of political and economic principles aimed at creating a more equitable society and resilient economies. At their core, these ideas seek to blend the democratic values of freedom, equality, and solidarity with a commitment to addressing economic and social inequalities. It is worth looking at some key elements.

Social Ownership and Control of the Economy

Democratic socialists advocate for a significant degree of social ownership and social control over the economy. This can take the form of worker cooperatives, public utilities, and government-run services, with the aim of ensuring that the economy serves the interests of the people rather than just a wealthy elite. Democratic socialist policies now often include support for cooperative enterprises through various means, such as providing start-up grants, offering tax advantages, facilitating access to financing, and implementing supportive legal frameworks. These are only policies, as democrat socialists do not have representation in legislatures around the world. As well, it supports the establishment of publicly owned banks that can provide resources for local development projects, including cooperatives, which is also is another strategy to enhance economic democracy.

Redistribution of Wealth and Power

A central tenet of democratic socialism is the belief that wealth and power should be redistributed more fairly. This includes policies like progressive taxation, which increases the tax rate for high earners, a wealth tax, and other measures to reduce income inequality, such as a higher minimum wage and stronger labour rights. The concept of democratic socialism, now also involves democratizing economic power within the workplace and the broader economy. It extends democratic principles to the economic sphere, proposing that decisions about economic policies and practices should involve those who are affected by them. Accordingly, democratic socialism advocates for laws and policies that encourage or require worker representation on company boards of directors, known as co-determination, which has been successfully implemented in countries like Germany.

Universal Access to Essential Services

Democratic socialists support universal access to essential services such as healthcare, education, and housing. This means that everyone should be able to access these services regardless of their income or social status.

Environmental Protection and Sustainability

Today, there is a strong focus on environmental protection and sustainability within modern democratic socialism. This includes policies to combat climate change, protect natural resources, and transition to renewable energy sources.

Democratic Decision-Making

Democratic socialists believe in expanding democratic decision-making beyond just elections - i.e. right into the heart of the economy through 'economic democracy' in the workplace and in work enterprises. This can include workplace democracy, where workers have a say in how their company is run, and participatory budgeting, where citizens have a direct say in how public funds are spent.

International Society and Solidarity

There is a strong emphasis on international solidarity and cooperation. This includes support for international institutions and agreements that promote peace, human rights, and environmental protection. The model of economic democracy and cooperative enterprises is also promoted on the international stage by democratic socialists through organizations like the International Cooperative Alliance and through international labor movements.

Evolution of Democratic Socialism

Why have ideas around democratic socialism evolved and changed from the 1960s when it was about socialism and capitalism together to more advanced ideas about cooperatives and economic democracy? The evolution from its mid-20th century focus on a blend of socialism and capitalism towards more nuanced ideas like cooperatives and economic democracy simply reflects broader socio-economic changes, shifts in political ideologies, and lessons learned from both past successes and failures. What are some main reasons for this evolution?

Changing Economic Contexts

As global trade barriers fell and capital flows increased, due to globalization, the dynamics of national economies shifted dramatically. Democratic socialists began advocating for cooperatives and local economic initiatives as a counterbalance to the perceived negative impacts of globalization, such as income inequality and loss of local industry. This shows that democratic socialism has pragmatically adapted to deal with real issues.

In addition, there has been much technological advancement since the mid-20th century. In particular, the rise of the digital economy and the decline of traditional manufacturing jobs shifted the focus towards new forms of worker organization and ownership models. Democratic socialists began to think about technology-driven cooperatives and platform cooperatives. Now, the rise of artificial intelligence technologies will present similar challenges and call for pragmatic alternative approaches under the banner of democratic socialism.

Ideological Shifts and Practical Experiences

The fall of the Soviet Union and the visible economic difficulties in other centrally planned economies provided a strong case against heavy central planning. Democratic socialists began to critique central planning as a whole. This led democratic socialists to seek more flexible, decentralized models of socialism, such as economic democracy, which could incorporate market mechanisms alongside collective ownership and management.

The ascendancy of so-called neoliberal economic policies from the 1980s onward, emphasizing deregulation, privatization, and a reduced role for the state, prompted democratic socialists to explore and articulate alternative economic structures that could better address social needs without replicating the failures of both hardcore socialism and unfettered capitalism. Of course, there is no economy in the world that is anywhere near deregulated, wholly privatized in all aspects of provision of goods and services, or in which the state does not play a role - so there is no neoliberal economy per se. Nevertheless, concerns about globalization and increases in concentration of wealth sparked new ideas in relation to democratic socialism.

Learning from Success Stories

The success of Nordic/Scandinavian countries (in the current economic system) in combining robust welfare states with competitive capitalist economies (although in Europe most businesses are small to medium enterprises) provided a blueprint for how democratic socialism could adapt to modern economic realities. These nations exemplified how to blend market efficiencies with social welfare, influencing democratic socialists worldwide.

As well, there have been numerous successful implementations of cooperatives and community-driven economic models around the world. These successes have shown that economic democracy can be a viable way to organize production and distribution in a manner that promotes community well-being and resilience. Accordingly, pragmatic democratic socialists did not ignore these developments, and they became part of a resilient democratic socialist framework.

Theoretical Developments

No one can ignore new economic thinking. Economists and theorists within the democratic socialist spectrum, like Amartya Sen and Joseph Stiglitz, began to provide robust critiques of traditional economic models and championed alternative approaches that emphasize social equity, environmental sustainability, and economic democracy.

The the influence of ecological economics and feminist economics also influenced democratic socialism. These branches or critiques of economic thought have emphasized the importance of sustainability, community-oriented solutions, and the undervalued sectors of the economy, such as care work, all of which have informed democratic socialist thinking.

Political and Social Movements

The growth of grassroots movements concerned with issues like climate change, economic inequality, and social justice has also energized democratic socialism. These movements often advocate for decentralized, democratic forms of organization and ownership, aligning with the principles of cooperatives and economic democracy.

Nor did or could democratic socialism ignore the younger generation perspectives. As younger people face economic challenges like precarious employment and high housing costs, there is an increasing interest in alternative economic models - and democratic socialism took these concerns into account. Youth seek a fairer, more equitable society. This demographic shift refocused democratic socialist priorities towards innovative and sustainable solutions.

Concluding Remarks 

In summary, the shift in democratic socialism from a traditional blend of socialism and capitalism to embracing concepts like cooperatives and economic democracy is a response to global economic changes. Also, ideological shifts, practical lessons from the past, the influence of new economic thought and critiques, and various grassroots movements also influenced the thinking of democratic socialists. This evolution reflects an ongoing attempt to create a more equitable and sustainable economic system that responds to the complexities of the modern world, which all good or progressive people have a concern with - the same applies to ideas now found in democratic socialism.

On the above ideas there remains and is much debate and discussion, including within the democratic socialist movement. It is about the best way to achieve goals related to these ideas. The overarching aim is to create a more just and equitable society that works for everyone, not just the wealthy few. Democratic socialism is no longer about merely mixing socialism and capitalism together. It goes much further in considering all manner of socio-economic endeavours by human beings, their sustainability of these endeavours, and general concerns regarding the environment and ecological systems, plus related aspects. Democratic socialism is an evolving concept.