Corporative economic model and its relation to the current landscape lenders discusses that A corporative is an independent association of individuals that voluntarily unite to meet their everyday social, financial or cultural needs. Their aspiration is always through a collectively owned and democratically-governed enterprise. Corporative economic model is, therefore, a theoretical explanation of how these corporates operate economically. Some economic models have been developed to explain the corporate operations. This discussion will, therefore, focus on the corporative economic model that describes the current landscape of lenders, and its effect on the people’s investments.
For q corporate to succeed, there are basic principles that must be taken into considerations. One of the fundamental principles is the member economic participation. In this case, it requires that members contribute equally to a democratically controlled capital for the corporate. There is a need to ensure that, a portion of the money is commonly owned by the corporative and, therefore, must be controlled by the members. This will make sure that the power is people owned and therefore any decision for investment is undertaken by a democratically agreed way. The benefit got from the commonly owned capital must be equally shared among the corporative members to ensure economic balance.
For a corporative to be economically viable, there is a need for an observation of independence and autonomy. This means, there is a need for a full member’s controlled operations without a third party interference. Any agreement with a third body must ensure that the corporative maintain its economics autonomy and makes decisions that are in its favor. This will make sure that there is an efficient accumulation of capital that would generate income based on the autonomic operation of the corporate and hence economic independence. This model, therefore, requires that there is a balanced corporate that ensures the existence of economic power among the individual members of the corporate.