Sarajevo ANALYSIS An Introduction to Economic Democracy Co-operatives as Drivers of Economic Growth June 2018 „ The concept of political democracy is often taken for granted in the developed world, despite its relative novelty and having emerged through a persistent and painful stru­ggle for voting rights. By contrast, economic democracy is often branded an impossi­ble and even utopian undertaking, just as social democratization was by certain layers of society 250 years ago. „ The former Yugoslav states, many of which are currently facing chronic economic problems with rising unemployment and underinvestment, nonetheless have a rich history of self-management. „ communities’ resilience to external economic shocks. Given their democratic nature, they approach decisions on relocation and outsourcing with their wider implications in mind. Another positive for business is the economy of scale and increased bargai­often leading to lower costs and increased competitiveness(see credit unions below). Finally, co-operatives create stronger ties between co-workers and reduce alienation from the production process, since they encourage democratic participation at every level of the enterprise and its operations. „ Through its co-operatives and collectives, economic democracy offers a more inclusi­ve and fairer system for organizing society and the economy. It can also contribute to resolving pressing current problems, from rising income and wealth inequality to how society deals with the environment and climate change. „ In Bosnia and Herzegovina, worker self-management through co-operatives has the potential to save companies from decline and alleviate job losses due to failed priva­tization.