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Examines a developing theory of socialism, distinct from the former real socialism, that can improve current global socioeconomic trends. It is argued that both capitalism & social democracy have failed to adapt to the social & economic needs of the majority working class; Swedish social democracy is used to illustrate. It is concluded that, because the economy is controlled by a central government that is influenced by the source of production, ie, business, the social democratic system is doomed to failure. The proposed system calls for a shift from global to regional production, & from a social marketplace to social corporations, similar to the autonomous structures of cooperatives, rather than a social marketplace. Several proposals for the control of capital are discussed, & criticisms that the new socialism will not permit risk taking are countered. Finally, it is noted that this change in social order will not be an abrupt one, but rather, a gentler, grassroots transformation. 2 References. T. Rosenberg