According to the WEF, inequalities in income and wealth cause economic instability, a range of health and social problems, and create a roadblock to the adoption of pro-environment strategies and behaviour.
WEF cites five reasons why we need more equality:
- Social relationships
- Human capital development
- Economic progress and stability
- Sustainable economies
The article goes on to propose six ways to reduce inequality through economic democracy.
Personally, I struggle with greater employee representation on company board. In my earlier life, I was a director of a number of French companies and found this system cumbersome and not particularly effective.
Much of my career has been related to delivering strategic change, so I believe that my two cents are relevent, even with my political bias.
Whilst economic democracy is a nobel goal, overall growth in economic prosperity must take precedence. If we look to the world’s greatest economic powerhouses, the US and China, we find limited economic democracy.
This leads to an open question:
Surely overall economic growth should be given priority over economic democracy?