ABSTRACT
This chapter talks about two major schools of thought in Yugoslavia which have the explicit ambition to provide a complete economic theory of the worker-managed firm. Yet Mijalko Todorovic's approach is purely economic. He draws a series of equations reflecting the general conditions of rational economic behaviour in a worker-managed firm where workers are entitled to a basic wage and share out the surplus or profit according to work. The basic categories of Marx's analysis are thus fully preserved in the worker-managed enterprise: the constant (fixed and circulating) capital (c), the variable capital (the 'wages') (v), and the surplus value (m). The most striking difference is of course the disappearance of 'wages', and hence of profit and surplus value, as an objective economic category in a worker-managed economy. The elimination of wages as part of the master and servant, or hired labour, relationship is postulated as one of the major sociological and legal-institutional objectives of the system.
