Group items tagged

what’s dominant is cooperation, not competition, among other things, because the market for automotive parts is not a true market, but rather a oligopsony (there are only a few buyers at the end of the chain).

Competition requires that where one wins, another loses

But are we talking about the same thing? Certainly not.

the zero sum shows up in a large part of exchanges between humans.

Cooperation among big businesses should worry us, not make us happy.

However, a certain degree of cooperation is required, at least on the part of those who are on each side

every exchange that is a zero-sum game is a bad exchange, something that shouldn’t be done because either you lose, or it’s no good at all (when both sides remain the same), or, worse still, if you win at the cost of the other in the exchange, you mine the trust of the other, and you sow an impending, inevitable, and painful betrayal. So, does it really materialize in “a large part of exchanges between humans?”

If we read the paragraph, we realize that the setting Julen is talking about is a well-defined institutional environment: labor scales and classical teaching organizations. We’re far from schools of the commons or cooperation based on the deliberation of a phyle.

The question is whether or not we think that salaried relationships will continue to be the basis of what we call a business, which organizes a good part of the co-opetition between people to reach the market.

Values take hold in different ways, according to the social structures in which we try to develop them. For example, if we put ourselves in the P2P mode of production, the issue is not whether one produces for the commons or for the market, because one will produce with and for both, creating competition and cooperation at the same time, as in the “coming capitalism,” or in every alternative model based on the dissipation of rents.

does it really make sense to propose rule changes in those environments? Is it possible to hack them? Obviously, if we didn’t think so, we wouldn’t be selling consultancy on the market, but if we thought that was enough, we wouldn’t be committed to building alternatives for ourselves and inviting others to make their own.

Because cooperation in that mold creates that whole gamut that Sennet and Julen talk about, and generally, apart from an arduous and conscious battle like ner is fighting,

debate on deeeper cultural values

send salaried work, even if only little by little, to the memory trunk from an inglorious time, and once and for all

reliance on horizontal networks and distributed power within communities

opposed to the competition between hierarchical organisations

inequality

contradictions

Empowerment in an era of growing inequalities

the exact opposite of capitalism

the exact opposite of homo economicus’ iconic egotism

Two main groups of criticism have emerged: one on ownership structures and the other on employment.

Growing economic inequalities

fueled both by patrimonial inequalities

income inequalities

If we want to assess whether it should be seen as the first part of a new economic paradigm or as capitalism’s latest trick to survive at all costs, we have to analyze its likely effects on inequality.

From a collective standpoint, it might well be better to have access to a resource rather than owning it.

But if someone asks you to free yourself from all earthly possessions, you should always ask: if it’s not mine, then who owns it?

Sometimes, owning is a way not to be owned!

sharing economy: after all, it mostly consists of venture capitalist-backed startups

Employees and customers are but a mean to an end, and in general, a good way to maximize return on investment is to get your customers to pay as much as possible (non-price competitiveness) and on the other side to pay your employees as little as possible (price competitiveness).

shareholders are not peers (from Latin par, “equal”), but overlords

your business model is based on your ability to sustain a community

This point is the most controversial of all. Sharing economy services could accelerate the phenomenon of job destruction.

Despite all those nice speeches about empowerment and entrepreneurship, people in the sharing economy are nothing but an extreme precariat

Real wages started stagnating while productivity per capita continued to increase.

a new deal had to be made: people would no longer be paid according to the value they actually produced, but they would get — seemingly — unlimited access to credit.

computers and robots will soon replace most human labor anyway. Wage labor cannot be saved, and rather than fighting long-lost battles, people should start thinking seriously about solutions such as Universal Basic Income.

neo-liberal revolution has left the basic structures of welfare

relatively untouched

If you cannot predict something with a reasonable amount of certainty, stop arguing endlessly about it and start acting towards the outcome you would like to see

What happens next, no one can tell. Are Silicon Valley venture capitalistss currently being fooled into creating the embryo of a P2P economic paradigm, in which they will lose most of their influence? Or are the enthusiasts talking about empowerment being tricked into creating a new kind of serfdom?

ancient Skeptic philosophers

epoché

remarks

I will make two

First, we should avoid using the concept of a “sharing economy”

Men are both altruistic and egoistic, and that’s perfectly fine.

Will big companies be able to face new competition from startups and win over new customers? If that is your main concern, you should probably stop talking about communities and peers. If the collaborative economy cannot help you solve our growing inequality problem, it should be of no interest to you.

Entrepreneurs could sidestep the VCs by turning to a “swarm” of small investors — and maybe supplant the entire VC system. By the end of the summer, he’d raised more than a million dollars in cryptocurrency. The legality of the model is uncertain,

High hopes for a liberating Internet have devolved into the dominance of a few mega-companies and the NSA’s watchful algorithms. Platforms entice users to draw their communities into an apparently free and open commons, only to gradually enclose it by tweaking terms of service, diluting privacy, or charging fees for essential features.

Facebook started flocking to Ello

The line between workers and customers has never been so blurry. Online platforms depend on their users

looking for ways to build platforms of their own.

VC-backed sharing economy companies like Airbnb and Uber have caused trouble for legacy industries, but gone is the illusion that they are doing it with actual sharing.

OuiShare, which connects sharing-economy entrepreneurs around the world

it’s becoming clear that ownership matters as much as ever.

Loomio is now being used by governments, organizations, and schools; a significant portion of the current usage comes from Spain’s ascendant political party, Podemos.

new kinds of ownership the new norm. There are cooperatives, networks of freelancers, cryptocurrencies, and countless hacks in between.

aspire toward an economy, and an Internet, that is more fully ours.

Jeremy Rifkin, a futurist to CEOs and governments, contends that the Internet-of-things and 3-D printers are ushering in a “zero marginal cost society” in which the “collaborative commons” will be more competitive than extractive corporations.

People are recognizing that doing business differently will require changing who gets to own what.

form of ownership

Cooperative intelligence

Occupy’s kind of direct democracy and made it available to the world in the form of an app — Loomio

It’s a worker-owned cooperative that produces open-source software to help people practice consensus — though they prefer the term “collaboration” — about decisions that affect their lives.

Rather than giving up on ownership, people are looking for a different way of practicing it.

Enspiral, an “open value network” of freelancers and social enterprises devoted to mutual support and the common good.

The worker cooperative is an old model that’s attracting new interest among the swelling precariat masses

Co-ops help ensure that the people who contribute to and depend on an enterprise keep control and keep profits

multi-stakeholder cooperative — one in which not just workers or consumers are voting members, but several such groups at once

“It’s more about hacking an existing legal status and making these hacks work.”

Sensorica pays workers for their contributions to the product. Unlike Sovolve, they participate in the company democratically. Everything from revenues to internal criticism is out in the open, wiki-style, for insiders and outsiders alike to see.

Only one device has been sold

Bitcoin

makes possible decentralized autonomous organizations, or DAOs,

The most ambitious successor to Bitcoin, Ethereum,

to develop decentralized social networks,

even an entirely new Internet

Swarm’s competition makes it hard not to notice the inequalities built into the models vying to disrupt the status quo. Bitcoin’s micro-economy holds the dubious distinction of being more unequal than the global economy as a whole. On a sharing platform, who owns, and who just rents? In an economy of cooperatives, who gets to be a member, and who gets left out?

Sooner or later, transforming a system of gross inequality and concentrated wealth will require more than isolated experiments at the fringes — it will require capturing that wealth and redirecting its flows. This recognition has been built into some of the most significant efforts under the banner of the so-called “new economy” movement. They’re often offline, but that makes them no less innovative.

connecting them to large anchor institutions in their communities; hospitals and universities with deep pockets can help a new enterprise become viable much more quickly than it can on its own

Government is an important source of support, too. Perhaps more than some go-it-aloners in tech culture might like to admit, a new economy will need new public policies

The early followers Francis of Assisi at first sought to do away with property altogether

There are many ways to own. Simply giving up on ownership, however, will mean that those who actually do own the tools that we rely on to share will control them.

changing what owning means altogether.

Nor has the euro reduced inequality among European countries.

The prolonged depression has helped fuel the rise of right-wing nationalists and Euroskeptics. In Austria, Finland, France, Germany, Greece, the Netherlands, and elsewhere, radical right-wing parties now enjoy more success at the polls than at any time since the 1930s.

Trust in EU institutions,

has fallen through the floor.

The reason currency pegs often depress economic growth lies in the essential nature of monetary arrangements.

Varoufakis

Galbraith

Stiglitz

All three would prefer that the system be reformed.

Galbraith offers the most succinct explanation of why the system has benefited Germany at the expense of weaker economies:

The Greek story is properly a European story in which, as in all European stories, Germany takes the leading role.

Varoufakis, Galbraith, and Stiglitz differ on the details, but they all blame the euro system and, especially, Germany.

Stiglitz shows that international systems of pegged currencies, of which Europe’s single currency represents only an extreme example, “have long been associated with recessions and depressions.”

Most observers now attribute these troubles to the euro.

In the real world, however, countries have diverse market positions and domestic institutions, which means that macroeconomic convergence is hard to come by.

a currency peg prevents the governments of countries that run trade deficits and incur debt from pursuing healthy economic policies to correct the problem.

normally loosen domestic monetary policy (thereby lowering interest rates and stimulating investment), let its currency depreciate (thereby boosting exports, reducing imports, and transferring income to the sector of the economy that produces competitive goods), and increase government spending (thereby stimulating consumption and investment).

Deficit countries are thus left with only one way to restore their competitiveness: “internal devaluation,” the politically correct term for austerity

permanent austerity becomes the only way to maintain international equilibrium.

Citizens grasp at increasingly radical new parties and lack the faith in Europe required to enact needed reforms.

Germany has emerged almost unscathed—at least so far.

Yet the costs of a flawed monetary system may eventually boomerang and depress growth even in Germany. Austerity is slowly reducing Germany’s ability to sell its goods to other European countries,

Despite the EU principle of free movement, many informal barriers to mobility still protect special interests.

to force the German economy into line

the EU could discourage trade surpluses by imposing a tax on them

Another set of structural policies would encourage large fiscal transfers and migration in order to offset the inequities that the euro has induced. In essence, this would replicate the movements of capital and people that make single currencies viable within individual countries.

fiscal transfers from creditor countries such as Germany to deficit countries such as Greece and Italy.

Stiglitz proposes, Germany and other surplus countries could do more to accept and encourage continuous migration flows from deficit countries.

Germans are unlikely to renounce the export-led growth that has stemmed from their 60-year tradition of high savings, low inflation, and modest labor contracts. They are even less likely to accept massive fiscal transfers to other countries.

Stiglitz offers the most thorough evaluation of the possible options. There are three. The first entails reforming the fundamental structure of the euro system so that it generates growth and distributes the benefits fairly. Stiglitz details how the EU and the European Central Bank might rewrite tax laws, loosen monetary policy, and change corporate governance rules in order to boost wage growth, consumer spending, and investment.

Political opposition to immigration is already strong in Austria, Denmark, Germany, and the Netherlands, and these countries would not tolerate many millions of additional foreigners.

a second policy option: muddling through. In this scenario, member states would strengthen the EU’s ability to manage the crisis.

European Stability Mechanism,

The burden of the current system on deficit countries must also be eliminated—a change that requires far more serious reform. Eventually, Europe would have to restructure its debt,

GDP-indexed bonds

eurobonds

the solvency of national banks,

Yet Germany and other creditor governments are naturally hesitant to accept financial responsibility for debtor countries.

Such reforms would also require the EU to massively expand its oversight over national financial systems,

If neither of the two options to save the single currency and restart growth is viable, this leaves only a third option: abolishing the euro.

Although Stiglitz would prefer that the euro be reformed, he admits that “there is more than a small probability that it will not be done” and therefore argues for breaking up the system.

from Grexit to his preferred alternative of breaking the eurozone into several subgroups, each with its own currency.

Yet even the radical step of breaking up the eurozone, Stiglitz makes clear, would probably help deficit countries only if Germany agreed to increase domestic spending, rein in speculation, and reduce deficits.

Abolishing the euro might slightly improve the options for deficit countries, but absent deeper structural reforms, it would not eliminate the underlying problem.

depressing reading, because in the end, they suggest that there is no easy way out of Europe’s predicament, given the current political constraints. In the long run, muddling through may be the worst outcome, and yet it is the most likely.

In response to such a bleak prognosis, many European federalists, particularly on the left, contend that Europe’s real problem is its “democratic deficit.” If only EU institutions or national governments were more representative, they argue, then they would enjoy sufficient legitimacy to solve these problems. The EU needs more transparency in Brussels, more robust direct elections to the European Parliament, a grand continent-wide debate, and political union, the argument runs, so that the resulting European superstate would be empowered to impose massive fiscal transfers and macroeconomic constraints on surplus countries. Alternatively, if more radical alternatives could be fully debated in national elections, then member states might muster the power to pull out of the eurozone or renegotiate their terms in it.

everything comes down to choices made by self-interested sovereign states. Governments have little incentive to make charitable and risky concessions, even in a united Europe with economic prosperity on the line. Politicians simply lack the strength and courage to make a genuine break with the status quo, either toward federalism or toward monetary sovereignty.

These crises are sharpening our awareness of the existence and importance of the commons. Natural commons are necessary for our survival, while social commons ensure social cohesion, and cultural commons enable us to evolve as individuals.

A reduction in the GDP does not necessarily signal a reduction in the real wealth of a society. Recognizing this fact widens our perspective and opens doors for new types of solutions.

The commons can help us overcome the crisis, but it requires systematic advocacy.

What are the commons and why are they are significant?

Commons

include knowledge and water, seeds and software, cultural works and the atmosphere. Commons are not just „things,” however. They are living, dynamic systems of life. They form the social fabric of a free society.

Commons do not belong to anyone individually nor do they belong to no one. Different communities, from the family to global society, always create, maintain, cultivate, and redefine commons

We have to constantly revitalize our commons, because everything we produce relies upon the knowledge we inherit, the natural resources that the Earth gives us, and cooperation with our fellow citizens. The activity known as „the economy” is embedded in our social fabric.

There‘s something new afoot – a movement to reclaim the commons!

Commons are being rediscovered and defended.

Commons are newly created and built upon. Countless people are creating new things for all and meaningful social and physical spaces for themselves.

Taken together, scientists and activists, citizens and politicians are developing a robust and innovative commons sphere – everywhere.

Commons are based on communities that set their own rules and cultivate their skills and values. Based on these always-evolving, conflict-ridden processes, communities integrate themselves into the bigger picture. In a culture of commons, inclusion is more important than exclusion, cooperation more important than competition, autonomy more important than control.

Neither no man‘s land nor boundless Property

The commons is not only about the legal forms of ownership. What matters most is whether and how community-based rights to the commons are enforced and secured.

The usage rights of fellow commoners are the stop signs for individual usage rights.

Absolute and exclusive private property rights in the commons therefore cannot be allowed.

Each use must ensure that the common pool resources are not destroyed or over-consumed.

No one may be excluded who is entitled to access and use the shared resource or who depends on it for basic needs.

What is public or publicly funded must remain publicly accessible.

The commons helps us re-conceptualize the prevailing concept of property rights.

Our shared quality of life is also limited by knowledge that is excessively commercialized and made artificially scarce. In this manner, our cultural heritage becomes an inventory of lifeless commodities and advertising dominates our public spaces.

We all need commons to survive and thrive. This is a key principle, and it establishes why commoners‘ usage rights should always be given a higher priority than corporations‘ property rights. Here the state has a duty to protect the commons, a duty which it cannot abandon. However, this does not mean that the state is necessarily the best steward for the commoners‘ interests. The challenge is for the commoners themselves to develop complementary institutions and organizational forms, as well as innovative access and usage rules, to protect the commons. The commoners must create their own commons sector, beyond the realm of market and state, to serve the public good in their own distinctive manner.

For a society in which the commons may thrive

The rules and ethics of each commons arise from the needs and processes of the commoners directly involved. Whoever is directly connected to a commons must participate in the debate and implementation of its rules.

Commons are driven by a specific ethos, as well as by the desire to acquire and transfer a myriad of skills. Our society therefore needs to honor the special skills and values that enable the commons to work well. A culture of the commons publicly recognizes any initiative or project that enhances the commons, and it provides active financial and institutional support to enhance the commons sector.

This challenge requires a lot of work, but it is also a great source of personal satisfaction and enrichment.

Our society needs a great debate and a worldwide movement for the commons.

the long term replacement of capitalism--an economy which socializes costs and privatizes benefits--with an economy of democratic cooperation

link these interventions together--at every point of the economic cycle

The worker coop movement must work to build broader alliances, holistic economic and social visions, and contribute to the creation of not only more worker coops, but a transformative social movement capable of changing the culture and economy--the "social ecosystem"--in which worker coops struggle to exist.

Operating successfully in a capitalist market, worker coops can support movements for social and economic transformation

a cooperative solidarity economy

Worker cooperatives are a particular--and effective--structure for democratically organizing the production of goods and the provision of services.

n economy is an ecosystem, a cyclical whole that includes processes of creation (the "original production" of natural resources by geological, biological, and energetic forces), production (human transformation of resources into goods and services), exchange, consumption (perhaps more appropriately called "use"), the processing of waste, and the recycling of surplus (sometimes called "investment").

But even a solidarity economy movement cannot succeed without being intimately linked to broader social change work. It is our connections with the work of anti-racism, feminism, queer liberation, environmental justice, ecological sustainablility, immigrant's rights, counter-recruitment and peace advocacy, labor organizing, grassroots community development, and other movements for cultural and insitutional change that will generate the collective power and momentum needed to effect long-term transformation and generate widespread, committed support for worker cooperatives as economic and social-change insitutions.

Indeed, to create conditions under which their success is increasingly possible, worker cooperatives must work to generate, sustain and support institutions at all other points of the economic cycle.

constructing reliable markets

for goods and services produced by worker cooperatives.

We must, instead, work to transform the very terms of the economic game.

What does this "movement building" look like?

the creation of a shared story and through this, the development of long-term solidarity between worker cooperatives and other groups working for democratic, community-based economies such as local currencies, consumer cooperatives, housing coops and intentional communities, economic justice advocacy groups, neighborhood associations, local food system projects and more

solidarity economy

Further examples from the solidarity economy movement outside of the U.S. abound. I delve into some of these more deeply in GEO's recent collaborative issue with Dollars and Sense (see Ethan Miller, "Other Economies Are Possible".)

from a passive place of "entering markets" to an active place of constructing them

Green Worker Cooperatives

Red Emma's

Wooden Shoe Books

Electric Embers

Riseup

Gaiahost Collective

Brattleboro Tech Collective

pioneers of cross-sector movement-building

it is the work that we as cooperators must embrace if we choose to believe that another economy, and another world, is possible

the underlying architecture has potentials not only for the future of money, but also for the future of networked cooperation.

Blockchain-based technologies may still have a role to play.

Just as Bitcoin makes certain financial intermediaries unnecessary, new innovations on the blockchain remove the need for gatekeepers from other processes

The broader implication is that the blockchain could support the activities and resources necessary to the commons

A lot of what follows is pretty speculative, but worth discussing in the context of peer-production.

The blockchain is the distributed ledger that keeps track of all transactions made using the Bitcoin cryptocurrency. Arguably this is Bitcoin’s key innovation

the blockchain could support new forms of peer-production, and fully decentralised infrastructures for applications as varied as finance, mesh networks, cloud databases and share economies.

Decentralised Autonomous Organisations.

There are a number of start-ups and groups currently innovating in this space such as Ethereum, Ripple and Mastercoin.

extends the decentralised capabilities of Bitcoin beyond financial transactions

Bitcoin involves two parameters: a trustless database (more on this later) and a transactions system capable of sending value from place to place

Ethereum builds a generalised framework that extends the capabilities of the blockchain to allow developers to write new consensus applications.

Distributed Organisations & the Trust Web:

claim is that blockchain-based technologies such as Ethereum can support and scale distributed forms of cooperation on a global scale.

it doesn’t matter whether I believe in my fellow peers just so long as I believe in the technical efficiency of the blockchain protocol.

Where questions about how to reach consensus, negotiate trust and especially scale interactions beyond the local are pervasive in the commons, the blockchain looks set to be a game changer.

the blockchain could support not only cryptocurrencies but also other financial instruments like equity, securities and derivatives; smart contracts and smart property; new voting systems; identity and reputation systems; distributed databases; and even the management of assets and resources like energy and water.

Cohen and Mougayar have dubbed this innovation the “trust web”

Ethereum incentivises participation, encouraging actors to contribute without introducing centralisation

Node Incentivisation:

In order to use an Ethereum application, users make micropayments to the developers in ether, Ethereum’s coin, or ‘cryptofuel’ as they term it.

Monetary transactions aside, this encourages people to contribute to the commons and puts systems in place to try and protect its resources from commercial expropriation.

a change to infrastructure

Decentralised Infrastructures:

Instead, we can imagine infrastructure as something immaterial and dispersed, or managed through flexible and transient forms of ownership.

The payoff seems to be that new blockchain-based technologies have the potential to support new forms of commons-based peer production, supplying necessary tools for cooperation and decision making, supporting complementary currencies and even provisioning infrastructures.

Other issues concern the design of trustless architectures and smart property.

Trustless Architectures: First of all, what kind of subjectivity does the blockchain support?

‘trust in the code.’

proof-of-work is not a new form of trust, but the abdication of trust altogether as social confidence in favour of an algorithmic regulation

‘consensus’ algorithms

proceeds from a perspective that already presumes a neoliberal subject and an economic mode of governance in the face of social and/or political problems. ‘How do we manage and incentivise individual competitive economic agents?’ In doing so, it not only codes for that subject, we might argue that it also reproduces that subject

Smart Property:

new controls implied by smart property also have worrying implications

Property doesn’t disappear, but instead it is enforced and exercised in different ways. If rights were previously exercised through norms, laws, markets and architectures, today they are algorithmically inscribed in the object.

There is real potential in the blockchain if we appreciate it not as some ultimate techno-fix but as a platform that, when combined with social and political institutions, has real possibilities for the future of organisation.

the salaries of chief executives rising by more than 300 times than that of the average US worker

USA

ichest 1% (not including capital gains) equals that of the bottom 90%

“Citizens know that the establishment has either lied to them or been totally incompetent. They feel that the economic system is rigged. They have lost trust in government and in the fairness of the political and economic system.”

I believe we can construct a world where the economy performs better for all, based on solidarity”.

“Some governments cut down on social security to grow GDP,” he said, “but the really important aspect is well-being. People actually feel better when they co-operate rather than being selfish.”

“There is going to be volatility, and co-ops are better able to manage risks than the private sector,”

Asked how much co-operatives could achieve while surviving in competitive markets, Prof Stiglitz warned that they “cannot ignore the laws of the economy”.

government regulation

t isn’t just the issue of government vs private sector.”