Promoting democracies by democratising capitalism, with time limited equities and polycentric self-governance

Abstract

Extreme concentrations of corporate wealth increasingly distort democratic systems, social stability and environmental outcomes. This research note advances a structural response centred on the democratisation of capitalism rather than its rejection. It argues that the persistent divergence between asset growth and income growth arises from the accumulation of surplus profits within corporations, facilitated by accounting conventions and unlimited corporate life. The paper proposes a self-funding tax incentive designed to encourage shareholders to amend corporate constitutions, enabling the progressive endowment of equity to citizens within host bioregions. Coupled with polycentric self-governance, this approach seeks to reduce systemic conflicts of interest, broaden stakeholder participation and align corporate purpose with long-term ecological and social objectives. Dividend flows to stakeholders generate taxable income and may offset welfare dependence, thereby financing the incentive over time. The model outlines a pathway towards universal wellbeing dividends, strengthened economic self-reliance and enhanced democratic resilience. By integrating time-limited equity, distributed decision-making and ecological corporate design, the proposal offers a market-compatible mechanism to address inequality, governance fragility and environmental risk.