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The reaction of Stuttgart workers to the destruction of public services and the perversion of co-determination indicates that austerity measures are coming slap-bang up against the legacy of two periods of democratic and egalitarian reform. The first is post-war reconstruction, including the welfare state. The second is the system of co-determination, which was strengthened in response to rebellions in the 60s and 70s. However, the resistance now, in Stuttgart as elsewhere in Europe, is not simply over the erosion of the institutions created in these periods of reform – after all, that erosion has been taking place for at least a decade. It is a profound and uncertain clash of cultures, expectations and increasingly activities, shaped by these periods of reform and rebellion, across generations. People’s expectations, or at least sense of legitimate claims, are for cultural equality as well as moves toward economic equality, and for meaningful and dignified work to match the decades of expansion of higher education.

There are also the spreading networks of autonomous hackers and geeks creating open, non-proprietorial, software and therefore effectively creating a key part of the infrastructure of today’s society as a digital commons

They all involve forms of labour which cannot be understood in the same terms as the conventional wage contract

nd the list also includes trade unionists who are taking on the role of organising for the common good in defence, or for the improvement of public services, or to push their company towards climate jobs.

All kinds of co-ops, cultural and social centres have emerged or been strengthened by these combinations of refusal and creation.

What this variety of activity has in common is that it is based on collaborative forms of creativity

and more recently ‘The coming of the commons’

can the public sector be transformed in a democratic, open and egalitarian direction against the forces of marketisation? If so, it can be a major economic player, especially in urban centres, with considerable bargaining power as contractor, as employer, and as trend-setter and creator of new communicative infrastructure.

The spread of information, knowledge and communication technologies not only enables theoretical expertise and practical knowledge to be shared on a previously unimaginable scale, but also creates tools for co-operation and self-managed co‐ordination of the most complex, multi-actor, transnational processes.

All these developments also illustrate the significance of democracy – transparency, participatory decision- making, the recognition of and means of sharing plural sources of knowledge – as a source of productivity, a base for a new economics.

What would it mean to think about industrial policies not so much in terms of the goal of nudging the private sector to invest, but more in terms of how to release, develop and extend the creativity of labour in its broadest sense?

How to expand and strengthen ‘productive democracy’? How to enhance the capacities of those whose ‘only’ means of production is their creative potential – and the social co-operation through which they can develop and realise this potential?

First, it’s come from the kinds of challenges that the trade union movement is facing in defending jobs in manufacturing as well as public services.

The second sphere for the rethinking of labour has been through the renewal of the co-operative movement. And a third development is the powerful and ambiguous trend opened up by the new technology towards new kinds of collaboration is the peer to peer, distributed productions and the digital commons, as referred to earlier. This ‘sphere’ is not separate: it could expand both the transformative power of workers already rethinking labour in conventional employment, and the scale and reach of co-operatives.

One increasingly significant context of convergence is over ‘climate jobs’. We’ve noted already the growth of co‐operatives creating and distributing renewable energy. The ravages of climate change are leading some trade unionists to demand that workers, whether currently unemployed or employed in high-carbon industries, be allowed to deploy their know-how to manufacture wind turbines, solar water heaters and other parts of the infrastructure of a low-carbon economy.

Another potential focal point for the mutual reinforcement of different forms of productive democracy is cities.

They illustrate ways in which labour could be self-organised, on the basis of social values underlying its purpose, use or context.

The implication of my argument here is that policymakers now need to work on how to support the economic creativity of millions of people, whether in existing workplaces or working precariously outside the formal labour market. At present these capacities are being wasted.

They need specific forms of support, some of it from the state, and some of it from organisations that share or could be persuaded to share their goals. These could include the trade unions, the co-operative movement, some parts of the church, foundations, and the growing experiments in crowdfunding, democratically controlled loan funds and so on.

As far as existing workplaces are concerned, we need states to not only restore and extend rights that protect trade unions in their struggles over wages and conditions, but also to give workers rights to control the purpose of their labour: for example, a legal prohibition on closures or redundancies without alternatives being publicly explored, and in the case of large companies, public inquiries at which alternatives would be presented. Labour is a commons – it should not be wasted. We need a new kind of ‘industrial strategy’ – one designed to support the creation of value that is not only monetary and requires autonomy from the pressures of the labour market. These should include a basic ‘citizen’s income’ (see page 34). Shorter working hours would be another measure that would serve a similar end.

We also need a regional policy that gives real support to cities as hubs of economic development, through direct public employment, and through support for co-ops involving regional banks. These could learn from the operations of the Mondragon bank and become a source of support and co‐ordination to networks of co-ops and other collaborative means of nurturing and realising the creativity of labour, rather than operating as banks of the traditional kind.

These are mere illustrations of industrial policies which recognise the capacities of generations shaped by expectations of cultural as well as political and economic equality. To realise these capacities as a resource for a new model of economic development requires rebuilding the distributional gains of the welfare state – but it also requires going further than that. We need to create not simply full employment, but the conditions by which people can creatively collaborate to meet the needs of a changing society and a precarious planet.

Citing Linebaugh’s book, The Magna Carta Manifesto, Chomsky writes:

With the commons no longer protected for cooperative nurturing and use, the rights of the common people were restricted to what could not be privatized, a category that continues to shrink to virtual invisibility. 

Its goal was to protect the source of sustenance for the population, the commons, from external power -- in the early days, royalty; over the years, enclosures and other forms of privatization by predatory corporations and the state authorities

While the mainstream likes to dismiss Chomsky as an out-of-touch lefty with a cult following, who else is pointing out that the Magna Carta’s basic guarantees are indeed being shredded?

collective-action problem in an open network context

How do you know that a given document, certificate or dataset -- or a vote or "digital identity" asserted by an individual -- is the “real thing” and not a forgery? 

online “ledger” that keeps track of all transactions of all bitcoins

set of transactions known as the “block”

a kind of permanent record maintained by a vast distributed peer network

blockchain technology could provide a critical infrastructure for building what are called “distributed collaborative organizations.”

to give its members specified rights within the organization, which are managed and guaranteed by the blockchain

blockchain technology is not confined to digital currency

reliable systems to manage their inter-relationships on network platforms.

Bitcoin 2.0 projects

a way to create distributed networks of solar power on residential houses

Transactions would be near-instantaneous, and transaction costs would be minimal.

traditional issues related to shared common-pool resources—such as the free rider problem or the tragedy of the commons—could be addressed with the implementation of blockchain-based governance, through the adoption of transparent decision-making procedures and the introduction decentralized incentives systems for collaboration and cooperation.

to reach consensus and implement innovative forms of self-governance. The possibility to record every interaction on a incorruptible public ledger and the ability to encode a particular set rules linking these interactions to a specific transactions (e.g., the assignment of cryptographic tokens) makes it possible to design new sophisticated incentive systems

Decentralized blockchain technologies bring trust and coordination to shared resource pools, enabling new models of non-hierarchical governance, where intelligence is spread on the edges of the network instead of being concentrated at the center

commons-based peer-production communities

have had a hard scaling up, without turning into more bureaucratic and centralized institutions

could overcome many collective-action challenges that cannot be easily solved by conventional institutions today

Who guards the guards? 

blockchain technology does offer more formidable tools for better protecting the perimeter of the commons and for empowering commoners to decide their own fate

in Brazil today. CoopHab is a major housing federation of co-operative savings societies.

During the industrial revolution English working people were excluded from bank lending though pawnbroking was rife. Mutual aid savings clubs developed interest-free lending systems for housing. The most successful were the Terminating Building Societies for buying land and building houses.

Sweden

Operationally, JAK is very similar to a credit union, except that members do not earn any interest on their savings or dividends on their shares.

The total cost of a JAK loan covers four things:(12)loan appraisal and set-up cost at a fee that is 2-3% of the approved loan value.an annual administration fee equal to 1% of the loan.an annual fee of approximately $30 to support the JAK educational system and volunteer services.(13)an equity deposit equal to a 6% of loan value to cover risk on any loan in the portfolio.

Members are strongly encouraged to pre-save in order to qualify for a loan.(15) Members also contract to continue saving while they are repaying their loans.

The Greenbacks would not be backed by gold, but by the farmers’ crops, which would be stored in sub-Treasury warehouses paid for by the government.

Swiss WiR

President Lincoln

free Greenback dollars

Lincoln

he had led the introduction of a paper money not backed by gold or silver, and had shown that the government could create, issue, and circulate by fiat the currency and credit needed to satisfy the spending power of the government and the buying power of consumers.

the privilege of creating and issuing money is not only the supreme prerogative of government, but it is the government’s greatest creative opportunity.

National Farmers Alliance and Co-operative Union, led by Charles Macune, developed the Sub-Treasury Plan.

JAK banking, CoopHab and Community Land Trusts work well but are below national policy radar. This is not entirely the case for co-operative commonwealth systems.

So this was not simply a co-operative currency. It was a new national currency under a co-operative and state partnership to expunge the debt peonage imposed by merchants and bankers.

Infuriated, farmers and workers created their own party in 1891 to carry forwardmonetary reform and a co-operative economy. The new Populist party won some local, state and Congressional elections before falling into decline after 1895.

A.C. Townley launched the Non-partisan League (NPL)

Bank of North Dakota

Henry Ford and Thomas Edison suggested a novel solution.

proposed that new money be created by issuing interest-free government bonds

Frederick Soddy

made the first case for an ecological economics free of debt

“100% money.”

100% reserve requirement.

Clifford H Douglas

He argued that a clear-cut and labour-saving solution would be for Government to create new money, interest-free as “Social Credit.”

First all citizens would receive a National Dividend.

Second, Douglas proposed that publicly-owned producer banks be set up in each region of the UK to provide finance debt-free to industry and enterprises.

From 1929 monetary reform attracted a wide audience In the UK, Australia, New Zealand, the USA and Canada with growing grassroots calls ranging from public banking to universal basic income.(34) The New Deal of Franklin Roosevelt took inspiration from John Maynard Keynes.

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.”

We could call this pseudo-abundance,

continuous capital accumulation

overuse and depletion of natural resources

Scarcity Engineering

Scarcity engineering is what we call this continuous attempt to undo natural abundance where it occurs.

“Intellectual property”

the ability of this privatized knowledge to create profits

A good recent example of this “patent lag” effect is the extraordinary growth of 3D printing, once the technology lost its patents.

Perpetually Increasing Social Injustice

more and more wealth into fewer hands through compound interest, rent seeking, purchasing legislation, etc.

To what degree does the Commons and peer-to-peer production function as a potential solution for these three interrelated structural crises of capitalism?

Digital networks (such as the internet) have recently enabled a new type of Commons where the knowledge required for human action and value creation has been mutualized. This has led to global open design communities, which jointly create open knowledge pools (e.g. Wikipedia), free software (e.g. the Linux Operating System) or open designs to enable physical production

Commons-based peer production emerges when technology enables the creation of open, contributory systems that create Commons.

The global open design communities engaging in peer production and mutualization of productive knowledge have no such perverse incentives. These communities design to ensure participation and are “naturally” inclined to design sustainable products and services.

The privatization and patenting of knowledge and technical solutions hampers the widespread distribution of necessary innovations. No such impediments exist in the open contributory systems of peer production communities, where innovation anywhere in the network is instantly available to the whole.

Peer production, independent of the profit motive, invites and facilitates the creation of solidarity-based forms of economic entities. Being generative towards human communities, these entities are more likely based on socially just forms of value sharing.

The Revolution Is Already Happening

responses take three forms:1. The sustainability and ecological/environmental movements, attempting to find solutions for the planet’s survival;2. The “Open,” “Commons” and “Sharing” movements, stressing the need for shareable knowledge and mutualized physical resources;3. The cooperative and solidarity economy, focusing on fairness.

The good news is that Commons-based peer production is the best way to bring these three necessary aspects together into one coherent system. However, for this to happen, the various movements need enabling tools and capacities. An example is the open source circular economy

Similarly, open and platform cooperativism — the convergence of socially just forms of production with shareable knowledge — allows all contributing citizens to create fair, generative livelihoods around the shared resources they need and co-create.

We’ve seen post-capitalist practices emerging since the late 20th century — for example, the 1983 invention of the universally available browser. Citizens have been empowered to create value through open contributory systems; these create universally available knowledge, which in turn can be used for material production.

emerging globally

Managerial pay has increased prodigiously; income inequality has sharpened, affecting women and marginalized communities most acutely, and trillion of dollars of individual wealth have been tucked away in tax havens. Beyond that, there has been a general shift away from direct employment, leaving more and more workers vulnerable to stalled worker rights, as well as declining wages and benefits.

the Web has not made good on its cyber-utopian promises of democracy or social well-being; the rise of the digital commons and practices of peer production, while profoundly important, has not succeeded in generating business models that can deliver livelihoods for practitioners.

highly concentrated ownership of robots seems the likely outcome

financing and legal support

Platform co-ops have emerged in areas like child care, art, journalism, transportation, social media, and food.

it is time to determine in which sector this business model works best

public policy

centralization of data and platforms ownership

The fairer digital economy we need is already emerging everywhere around us.

the housing rights activist and feminist Ada Colau – took control of the Catalan capital

citizens started to wonder what would happen if the movement tried to occupy the institutions too

From the beginning, this was not a simple return to electoral politics but an experiment in transforming local institutions. It was to use municipal institutions not instead of movement organising but to support, expand and generalise the movement.

it’s about the blossoming of examples around the world where citizens are successfully winning their cities.

internationalist

the list of radical civic platforms standing up to entrenched political interests continues to grow.

there are a number of principles and practices that the new municipalist movements share

The political theorist Margaret Kohn once defined municipalism as ‘a politics of everyday life concerned with the issues that immediately affect citizens, including education, policing, jobs, culture and services. Municipalism is a political approach to community.’

The role of the municipality was to foster associations that challenge concentrations of power in the hands of a small elite. Capturing the city hall was never an end in itself but rather one method in expanding the scope of experiments in popular participation.

the continued erosion of basic living standards and increasing inequality driven by the myth that there is ‘no alternative’ has increased awareness that revolutionary change extends beyond ‘economics’ to every aspect of our lived experiences.

the new municipal citizens’ movements have arisen out of the failure of national political parties or street-based organising to deliver transformative change

This new municipalism may be picking-up where the alter-globalisation movement left off, retaining and reinvigorating the concepts of prefiguration, experimenting with ‘diagonal’ methods for dispersing power, and fuelling the expansion of non‑state, non-market ways of organising our societies.

This provides fertile ground for the development of a progressive post-capitalist politics that can win.

Women are at the forefront of many of these citizens’ movements

The feminisation of politics means encouraging a political style that openly expresses doubts and contradictions – backed by a values-based politics that emphasizes the role of community and ‘the commons’.

open spirit is at the centre of the new political culture

The commons is much broader than an economic strategy for resource management; it’s about building forms of autonomy and social solidarity as the substance of our day-to-day lives.

the Commons Lab

Department of the Commons

These are not occupied but liberated spaces.

social centres

‘citizen patrimony’, which would formalise and expand a network of spaces across the city where the municipality provides greater resources and public infrastructure for self-managed common use.

The collaboration between citizens’ groups, cooperatives and municipalities is also at the heart of many of the attempts to return public services to public ownership.

There are many reasons why cities and regions want to take services back under public ownership, but reducing cost (especially for poor people), improving the quality of services, and increasing financial transparency are recurrent themes. Efforts to create better conditions for workers are another key driver. In the energy sector, which accounts for around a third of the cases where services have been returned to public ownership, the shift is often driven by efforts to tackle climate change.

Taking control of the energy supply also means that the council can better coordinate efforts to reduce energy use.

A number of French municipalities have taken back control of school meals from corporations to protect local agriculture and improve the quality of meals.

Increasing citizens’ control is not just about taking over existing institutions, but building new democratic processes that involve citizens in the day-to-day decision making of their cities.

it involves changing how citizens interact with the city government.

participatory budgeting

These municipalist projects are beginning to define new ways for progressive movements to organise, challenging and moving beyond dichotomies that have traditionally haunted the left.

The objective is to use municipal institutions as part of a project of autonomy – to expand the commons, to build non-state institutions and to empower citizens (not their representatives) to control the collective conditions in which they live their lives.

The new municipalism isn’t about winning elections; it’s about building, transforming and distributing power.

We must do it ourselves. It’s time to win back our cities.