Ota Å ik

Ota Šik ( born September 11, 1919 in Pilsen, † August 22 2004 in St. Gallen ) was a Czech- Swiss painter and economists. He became famous as the creator of the economic reforms of the Prague Spring, the Third Way were also known under the name.

Life

As the son of Jewish parents, he grew up bilingual ( Czech and German ) on. From 1924 to 1936 he attended the elementary school in Teplice. In 1933 he began to study painting at the Art Academy in Prague, which he had to break 1934. From 1936 he worked for several companies. At the same time he worked as a painter and continued his education at evening classes. From 1939 he was active politically against the Nazi occupation. In 1940 he was arrested a member of the Communist Party of Czechoslovakia and a short time later because of his resistance activities and introduced into the Mauthausen concentration camp. In 1945, he was liberated by American soldiers.

After his liberation, he stressed that it was important to be politically active: He was trained as a member of the Communist Party in economics at the party-affiliated University for Political and Social Studies, graduating with a thesis. From 1962 he was a member of the Central Committee of the Communist Party of Czechoslovakia, from 1964, he led a party and state Commission for Economic Reform and a member of the State Planning Commission.

In April 1968, the Communist Party of Czechoslovakia took place with an action program for a change in economic policy. The crucial economic passages were from Šik:

The core of this economic program was that within a framework plan, the economy should be controlled by economic means. The directors of the companies would have been largely autonomous in their pricing and product policies for these ideas. Valtr Komárek, an employee sik, this economic formula later rewrote as:

In 1961, Šik the line of the influential Economic Institute of the Academy of Sciences. The lack of efficiency of the economy prompted the party leadership in the early sixties still under Antonín Novotný, to make use of the Council of the reformer. Beginning of 1967 was implemented against fierce opposition in the state and party apparatus, a version of its " New Economic Model". In April 1968 he was appointed by Alexander Dubček to Deputy Prime Minister and Coordinator of the economic reforms that have been assessed in Moscow as a restoration of capitalism. As the " Prague Spring " was terminated on 21 August 1968 by the Soviet intervention, Šik was talking in Belgrade, where he denounced the intervention. On September 3, he was relieved of his duties. He then held temporarily the post of Counselor in Belgrade and then emigrated to Switzerland. In 1970 he became Professor of Economic and Social Sciences at the University of St. Gallen (then University in St. Gallen). He received in 1983 the Swiss citizenship. In St. Gallen, he continued his work the combination of plan and market economy - he described his model as a "third way ", where the layout elements to the market increasingly receded into the background. In the 70s, Ota Šik was several times a guest at the Achberger ( anthroposophical ) annual meetings for Third Way. It also emerged more anthroposophic publications that were based both on the model of the threefold social organism, as well as on Ota Sik's economic reform ideas. He never saw himself as a representative of the Threefold Social Rudolf Steiner. He confessed in 1990 in several interviews looking back to the " full-blooded " capitalism, as compared to a Czech newspaper: " Look, we were not able at that time to present all of our goals fully (...) So was also the third way a verschleierndes maneuvers already. . at that time I was convinced that the only solution for us is a full-blooded market capitalist way. ".

His major work, " Humane economic democracy ", he published in 1979.

In this field he achieved international success and has taken in politics and science an important position. He was a university professor, Deputy Prime Minister in the era of the Prague Spring and recognized all over the world head of the reform movement in the economy. From 1992 he painted just yet. On the night of August 22, 2004, he died of a brain tumor.

His second son Miroslav Šik (* 1953) is professor of architecture at the ETH Zurich.

The model of human economic democracy of Ota Šik

Employees companies

At the microeconomic, ie operational level, the concept of a humane economic democracy provides economically efficient working, through the market pressure corresponding to consumer demand holdings that are organized internally, that the production process runs as possible human, ie, that Operating alienation is as far removed. The latter necessary to tangible and intangible participation ( participation) of the employees of a company employee ( MAG) comes in different organizational principles the same expression:

The share capital of a TUE individual persons or groups in a neutral way. It can not be split to any person. It belongs to the entire operating collective or quasi itself There are no share certificates. Who is a member of MAG, is automatically a co-owner, who she leaves, automatically lose all rights and obligations. Mobility problems are thereby avoided. Neutralized capital arises from a statutory rate of emerging operating profits, which have to be transformed into capital neutralized. Existing private capital is not affected thereby. Neutralized capital arises so little by little without expropriation of existing Privatkapitalien. The capital neutralization is also only from a political to be determined absolute profit size that allows smaller private farms so unaffected. The neutralization rate must be small enough to leave plenty of motivational gains for the private owners of capital, but large enough to transfer larger private enterprises in MAGs in a politically desired period of time. It would create a mixed system of private small businesses, some private medium-sized enterprises and large MAGs. Business start-ups could thus continue to be made by private risk capital ( filling in gaps in the market ) and also by MAGs. Once the neutralized capital has reached a majority position in so far private companies after a transitional period, engage in MAGs following organizational principles:

The Annual General Meeting of all employees of a MAG elects a Supervisory Board, which in turn determines an Executive Board. The Supervisory Board is responsible for all basic decisions ( major investments, mergers, forms of profit-sharing, etc. - to the latter equal more). He is the corporate body of the employees to the Board and should be so far largely composed of employees of MAG, which alternate in this function at certain time intervals (rotation principle). The Supervisory Board monitors especially the ongoing operations of the board. This is made up of internal and external experts. In contrast to the Supervisory Board, the term of office of a board member is in principle unlimited and only performance related.

In MAGs self-determined working groups can be realized as far as possible, in which the employees within the scope of this working group by the Board given tasks on the internal division of labor and others, only the respective working group can decide matters concerning democratic. The management style throughout the MAG is as democratic as always possible to organize ( rule the expertise and the best argument and not rule any dominions ).

People in a MAG should be experienced as a responsible employee, as people whose word is heard, can have a say in decisions and and no longer face foreign to their own operation. In addition to the intangible participation (active and passive suffrage ) the identification feeling of employees is to be strengthened, especially through their joint ownership of the neutralized capital, the concrete in a profit-sharing manifests itself (material participation). This profit sharing is paid in addition to the wage rates (or, in lost time, not). Negotiated wages must remain in order to operate a meaningful operational profit and loss account can and to work performance or qualifications also to make them comparable between farms and industries or hold. Within the framework of a legally determined maximum profit sharing ratio ( which equals more ) is determined by the Supervisory Board of a MAG specific procedures for the participation in profits ( per capita, according to salary levels, after years of operation, etc.). Even in a partially or fully guided by private capital firms should be regulated modes of profit-sharing law in order to prevent the relocation of these to MAGs.

With this model, an overcoming of the opposition between capital and labor at the enterprise level, the model of a humane economic democracy demarcates by various so-called inter-company investment models. What do these models, such as inter-company equity funds, all of which can not afford is to overcome the specific, operational alienation of working people. A joint ownership of the " Somewhere " an economy leaves no emotional ties and responsibility feelings arise in people - see the experience in the former "real existing socialism ". But this is a basic condition for overcoming workplace alienation, ie a humanisation of work.

Macroeconomic Distribution Planning

The concept of a macro- distribution planning is the formerly socialist planning concept almost nothing in common. All undesirable developments in capitalism are due directly or indirectly to the distribution ratios ( proneness, poor social needs and ecological demands, inadequate macroeconomic participation). These macroeconomic distribution ratios are thus subject the concept of a macroeconomic distribution planning. In this concept, no operation is required, what he has in what quantities or qualities to produce. It alone determines the market - and that means: the consumer. Anything else would be a dictatorship over the concrete gratification of man - and an inefficient, as the example of real existing socialism has shown also.

The macroeconomic distribution planning (hereinafter macro planning) are thus all primary distribution processes ( division of national income on profits and wages), and the secondary redistribution processes (state and kreditäre redistribution ). The quantitative, crises and inflation avoid balancing the rather investive oriented final, so Endeinkommen (especially investive oriented profit parts) and the rather consumptive -oriented Final Agreement ( consumptive oriented profit parts, labor income and government spending ) with the necessary, of the development of production and the productivity -dependent total economic investment and consumption totals is the actual task of macro planning.

The organization of the macro planning has to be this major task, as well as further objects democratization of economic decision-making processes as well as a social control of social consumption needs. The planning organization must on the one hand a possible appropriate, scientifically sound recording of the macro-economic development processes, ie the acquisition of what is productive possible in the near future, guarantee (genetic, ie determined by the productive actual condition and the other productive development side of planning). On the other hand, it must as far as possible determined by various democratically legitimate interests be ( teleological, that is, certain of objectives and desires page planning ), ie they must not be expertokratische planning bureaucrats behind closed doors. All relevant planning commissions must so far from professionally qualified representatives of various interest groups be composed ( experts from political parties, associations, unions, academia representatives, etc.). They are recruited from existing institutions and cause so far no more bureaucracy. This planning commissions work from two to three plan options that are presented to the people for election. Planning is so democratically, from their creation as their results here. The plans, which must all crises balanced avoiding differ mainly by the different modes of dividing the total economic consumption on private and social consumption, and especially by the different variations of internal division of the latter (rather more money for private or public transport, for nuclear power plants or solar panels for armor or education - so far as these relations are influenced by public demand ).

The methodology of macro planning is thus the indirect influence and control of the macroeconomic production process through the planning and direction of macroeconomic distribution processes. The amount of total economic consumption is initially determined by the total sum of the economic union wages. It is - also determined in the model of humane economic democracy through negotiation - under democratic expansion in the number of negotiating partners.

In this concept, the macroeconomic consumption sum, however, also determined by the profit sharing. Here is the place where the macro planning engages in regulating the micro-economic process: the plants, a maximum profit sharing ratio required by law. The Company will then determine which consumptive oriented income components may be distributed and what parts for profit investments must remain in operation ( or reserves ). It does not determine the absolute profit variables which may depend solely on the market performance. It determines conditions or quotas and ensures dieserart for a macroeconomic equilibrium, ie for proper relationships between the more consumptive and more investive oriented parts of the national income on the one hand and the proportions of consumption and investment goods industry on the other.

In order not to jeopardize this balance, the macro planning is the responsibility also to take into account in determining the consumptive oriented Final income variables as well as the investive oriented Final income variables, the state as kreditären redistribution processes - ie the amount of the wage and profit taxation, indirect taxes, the structure of government spending, the savings totals of wages and profits, the consumption and investment loans and its different depending consumptive or investing effects. A balance in the allocation of primary income ( wages, profits ) may not by secondary redistribution processes (government, banking, insurance ) are endangered.

The implementation of the plans is the responsibility of the democratically elected government or a particular of their Economic Council. The government is bound against the individual businesses, selected via the referendum plan. You will be composed usually of parties or party coalitions that have already been asked "their" plans on the campaign trail behind certain plan variants, ie behind. The measures by which the plan objectives are being met, are already given in principle in the plans. There is a plan adequate wages, profit-sharing, fiscal, monetary and trade policy, etc., in other words for the most part indirectly the economic process influencing economic policy measures. Macroeconomic distribution planning is proposed economic policy in this sense. Maximum individual economic policies can (could) be market- retardant, but not the planning of economic policy itself again: It does not relate to manufacturing directives for individual farms. On the part of the macro planning are the companies, apart from the profit sharing quota, in all their decisions, so free ( or not free ) as it is today.

Anti Monopolistic market regulation

Even democratically organized societies employee might be tempted to succumb to the temptations of monopolistic price - setting power and income. The third column in the model of a humane economic democracy why is the concept of an anti- monopolistic market regulation. It includes two main areas of assistance:

First, the general economic policies should promote optimal ( regulatory and policy process ) economic competition. This means the systematic promotion of business start-ups, by outsiders or as well as competing imports in economic sectors or industries that are threatened by monopolization.

Second, the model of a humane economic democracy provides an anti-monopoly penalty tax for long-term above-average profit rates. This is exactly what is in fact the criterion for a monopoly: Above-average profit rates normally attract capital, lead to production or supply increases and thus ultimately to relative price and profit reductions. Failing this process of equalization of profit rates in the longer term, is to assume that there is a monopoly uses its power to prevent this compensation process. An anti-monopoly penalty tax, as a policy instrument embedded in the democratic process of macro- planning, so would this normally occurring process of economic rates of return approximation simulate speak: Over a politically period to be determined would have a long-term excessive profit rate of a single company to the economic or industry average, be aligned. This must be done slowly and gradually, so as not to discourage short-term above-average profit rates as a reward for successful market process and product innovations.

Awards

Ota Šik was in 1989 by the Department of Economics of the University of Kassel, the Dr. rer. pol. H.C. ( Doctor of Economics honorary ) awarded.

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