Investigating an Economic Alternative, Part 3
In the previous two articles a case for public ownership has been made based on the economic and social benefits of taking key industries into public ownership[1]. In this article we will explore the theme of democracy and the deepening of democratic principles through public ownership. It isn’t or it shouldn’t be controversial to state that private ownership of key sectors of the economy is inherently undemocratic. Decisions about pricing, investment, and service provision are made by corporate executives and shareholders, whose interests often diverge from those of the broader population. Public monopolies, on the other hand, provide a platform for democratic control and accountability.
Democratising Decision-Making
In a publicly owned system, communities can have a direct say in how services are delivered and priorities are set. This could take the form of citizen assemblies, worker representation on management boards, or local councils overseeing operations. Such mechanisms ensure that public enterprises remain aligned with the needs and aspirations of the people they serve.
Examples abound even in capitalist democracies. In Norway, the state-owned energy company Statkraft operates with significant input from public representatives, ensuring that profits are reinvested into community development and renewable energy initiatives. In Germany, worker representation on company boards – a hallmark of their co-determination model – ensures that labour interests are considered alongside corporate goals. These examples show that democratic practices within public enterprises lead to both economic and social benefits, aligning operations with the broader public good.
Lessons from Ireland’s Past and Future Prospects
Ireland’s history offers a compelling argument for public ownership. From the success of the ESB (Electricity Supply Board) in electrifying the nation to the failures of privatisation in sectors like water, telecommunications, and transport, the evidence is clear: public ownership works when it is well-managed and guided by the public good. The privatisation of previously state-owned entities has often resulted in higher prices, reduced service quality, and the erosion of worker rights. For instance, the sell-off of Telecom Éireann, a privatisation disaster story in its own right, led to underinvestment in broadband infrastructure, leaving many rural areas with inadequate connectivity. Similarly, privatisation in public transport has prioritised profitability over coverage, isolating communities in less profitable regions.
In the waste management sector, liberalisation has led to inefficiencies, with multiple companies servicing the same areas while promised price reductions have not materialised. The result has been higher costs and poorer service, underscoring the failure of privatisation to deliver on its promises.
The Renewable Energy Imperative
Looking ahead, the case for public ownership is particularly strong in renewable energy. Energy independence is another cornerstone of any alternative economic model. In the context of Ireland, this could mean reviving a publicly owned entity like the ESB to lead the renewable energy transition. This entity could oversee the development of wind and wave farms along Ireland’s expansive coastline, invest in solar energy installations, and modernise the national grid to accommodate decentralised energy production. A publicly owned energy infrastructure could ensure equitable access to clean energy while facilitating large-scale investment in wind, solar, and other renewable technologies. A public monopoly on electricity infrastructure and servicing would not only reduce costs for residential, commercial, and agricultural users but also ensure that the shift to renewables benefits society as a whole rather than a select few private firms and their shareholders.
Policy measures such as feed-in tariffs for small-scale producers and public funding for community-owned renewable projects would ensure widespread participation and benefit-sharing. Whether or not Ireland is ready to move on the path to socialism, ensuring energy security is a priority that organised workers and the trade union movement, spearheaded by ICTU, must champion today. Historical successes, such as Ireland’s electrification through the ESB, demonstrate the transformative potential of public monopolies. Building on this legacy, a publicly owned renewable energy infrastructure could address the dual challenges of climate change and energy poverty, ensuring no household is left in the dark.
Conclusion: Building an Economy for the Common Good
The fight for public ownership is fundamentally a fight for democracy. In a truly democratic economy, the resources and services underpinning society are controlled by the people, for the people. This stands in stark contrast to the current model, where private monopolies and oligopolies, whether foreign or domestic, prioritise profits over public welfare and the environment.
Public ownership is about more than efficiency – it is a democratic imperative. It empowers citizens to have a say in critical decisions, ensures that essential services meet societal needs, and safeguards against the exploitation inherent in profit-driven models. With the pressing challenges of climate change and inequality, public ownership of renewable energy and other key sectors offers a transformative path forward.
The illusion of choice in a privatised economy is hollow. True choice lies in shaping the systems that govern our lives. As the political cartel in Ireland continues to offer no meaningful alternatives, the demand for public ownership must come from the ground up. It is time for workers, communities, and progressive movements to champion this vision and must unite to reclaim the means of production, and build an economy for the common good, rooted in democratic principles.
[1]Parts 1 and 2 of this series can be found on the Socialist Voice website here:
Part 1: https://socialistvoice.ie/2025/01/public-versus-private-monopolies-investigating-an-alternative/
Part 2: https://socialistvoice.ie/2025/01/to-further-the-case-for-public-monopolies-democratising-the-economy/
