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Levels and Spheres of Business Power

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Levels and Spheres of Business Power
Compare and Contrast Marxist, Elite and Democratic Pluralist Theories of Power.

Classical Elite theories were developed by Pareto and Mosca, to some extent as a critical response to Marxism, but have also been very significantly modified by theorists such as C.W. Mills. Marx’s theory of the ruling class states that, basically, the Bourgeoisie are an economically dominant class in that their ownership of the means of production in capitalist society gives them power over decisions affecting production, investment and employment, but they are also a ruling class in that they indirectly exercise considerable control over the capitalist state which may be seen as an interlocking set of political institutions including. Many would accept Marx’s theory for the 19th Century, when politics was dominated by the aristocracy and adult suffrage was limited and when trade unions were weak and the Labour Party was non-existent, thus restricting the political influence of the working class. However, it has been claimed that Marx’s theory had lost much of its relevance by the middle to late 20th Century in conditions of universal suffrage and given the growing strength of trade unions and of the Labour Party. Now it was argued that the managerial revolution or the divorce of ownership from control had weakened the economic power of the capitalist class and that the distribution of political power could be more accurately described by the theory of Democratic Pluralism to be discussed later.

Yet by the late 1960s, Marxist ideas experienced something of a revival and writers such as Ralph Miliband aimed to rehabilitate the Marxist theory of the ruling class. According to Miliband, capitalism had not undergone very significant changes since the 19th Century and theories of post-capitalism and democratic pluralism were themselves not accurate. Miliband recognised that the Bourgeoisie or the capitalist class did not have total control over the State but argued that its control was

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