Socialist democracy: Rosa Luxemburg’s challenge to democratic theory

<jats:p> Contemporary democratic theorists have tended to assume that democracy is compatible with and even requires a capitalist economic system. Rosa Luxemburg offers a democratic criticism of this view, arguing that the dominating effects of a capitalist economy undermine the ability of liberal democracy to actualise its ideals of freedom and equality. Drawing on Luxemburg’s writings, this article theorises a model of socialist democracy which combines support for public ownership and control of the means of production with a plural multi-party electoral system and a defence of civil liberties. It recovers Luxemburg’s conceptualisation of a socialist democracy as the extension of democratic principles to major social and economic institutions currently governed by nondemocratic authority structures. It defends this version of socialist democracy from the liberal objection that it violates citizens’ property rights and the Marxist objection that it retains the dominating structures of the state and a coercive legal system. </jats:p>