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Tiberius Brastaviceanu

Partner State - P2P Foundation - 0 views

    • Tiberius Brastaviceanu
       
      we call this a custodian
    • Tiberius Brastaviceanu
       
      we call this a custodian
  • So here we have it, the new triarchy: - The state, with its public property and representative mechanisms of governance (in the best scenario) - The private sector, with the corporation and private property - The commons, with the Trust (or the for-benefit association), and which is the ‘property’ of all its members (not the right word in the context of the commons, since it has a different philosophy of ownership)
    • Tiberius Brastaviceanu
       
      so where is direct democracy in all this?
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  • In a first phase, the commons simply emerges as an added alternative.
  • becoming a subsector of society, and starts influencing the whole
  • phase transition and transformation will need to occur.
  • how a commons-dominated, i.e. after the phase transition, society would look like.
  • At its core would be a collection of commons, represented by trusts and for-benefit associations, which protect their common assets for the benefit of present and future generations
  • The commons ‘rents out’ the use of its resources to entrepreneurs. In other words, business still exists, though infinite growth-based capitalism does not.
  • More likely is that the corporate forms will be influenced by the commons and that profit will be subsumed to other goals, that are congruent with the maintenance of the commons.
  • The state will still exist, but will have a radically different nature
  • Much of its functions will have been taken over by commons institutions, but since these institutions care primarily about their commons, and not the general common good, we will still need public authorities that are the guarantor of the system as a whole, and can regulate the various commons, and protect the commoners against possible abuses. So in our scenario, the state does not disappear, but is transformed, though it may greatly diminish in scope, and with its remaining functions thoroughly democratized and based on citizen participation.
  • In our vision, it is civil-society based peer production, through the Commons, which is the guarantor of value creation by the private sector, and the role of the state, as Partner State, is to enable and empower the creation of common value. The new peer to peer state then, though some may see that as a contradictio in terminis, is a state which is subsumed under the Commons, just as it is now under the private sector. Such a peer to peer state, if we are correct, will have a much more modest role than the state under a classic state society, with many of its functions taken over by civil society associations, interlinked in processes of global governance. The above then, this triarchy, is the institutional core which replaces the dual private-public binary system that is characteristic of the capitalist system that is presently the dominant format.
  • fundamental mission is to empower direct social-value creation, and to focus on the protection of the Commons sphere as well as on the promotion of sustainable models of entrepreneurship and participatory politics
  • the state becomes a 'partner state' and enables autonomous social production.
  • the state does exist, and I believe that we can’t just imagine that we live in a future state-less society
  • retreating from the binary state/privatization dilemma to the triarchical choice of an optimal mix amongst government regulation, private-market freedom and autonomous civil-society projects
  • the role of the state
  • “the peer production of common value requires civic wealth and strong civic institutions.
  • trigger the production/construction of new commons by - (co-) management of complexe resource systems which are not limited to local boundaries or specific communities (as manager and partner) - survey of rules (chartas) to care for the commons (mediator or judge) - kicking of or providing incentives for commoners governing their commons - here the point is to design intelligent rules which automatically protect the commons, like the GPL does (facilitator)"
  • the emergence of the digital commons. It is the experience of creating knowledge, culture, software and design commons, by a combination of voluntary contributions, entrepreneurial coalitions and infrastructure-protecting for-benefit associations, that has most tangibly re-introduced the idea of commons, for all to use without discrimination, and where all can contribute. It has drastically reduced the production, distribution, transaction and coordination costs for the immaterial value that is at the core also of all what we produce physically, since that needs to be made, needs to be designed. It has re-introduced communing as a mainstream experience for at least one billion internet users, and has come with proven benefits and robustness that has outcompeted and outcooperated its private rivals. It also of course offers new ways to re-imagine, create and protect physical commons.
  • stop enclosures
  • peer to peer, i.e. the ability to freely associate with others around the creation of common value
  • communal shareholding, i.e. the non-reciprocal exchange of an individual with a totality. It is totality that we call the commons.
  • It is customary to divide society into three sectors, and what we want to show is how the new peer to peer dynamic unleashed by networked infrastructures, changes the inter-relationship between these three sectors.
  • In the current ‘cognitive capitalist’ system, it is the private sector consisting of enterprises and businesses which is the primary factor, and it is engaged in competitive capital accumulation. The state is entrusted with the protection of this process. Though civil society, through the citizen, is in theory ‘sovereign’, and chooses the state; in practice, both civil society and the state are under the domination of the private sector.
  • it fulfills three contradictory functions
  • Of course, this is not to say that the state is a mere tool of private business.
  • protect the whole system, under the domination of private business
  • protector of civil society, depending on the balance of power and achievements of social movements
  • protector of its own independent interests
  • Under fascism, the state achieves great independence from the private sector , which may become subservient to the state. Under the welfare state, the state becomes a protector of the social balance of power and manages the achievements of the social movement; and finally, under the neoliberal corporate welfare state, or ‘market state’, it serves most directly the interests of the financial sector.
  • key institutions and forms of property.
  • The state managed a public sector, under its own property.
  • The private sector , under a regime of private ownership, is geared to profit, discounts social and natural externalities, both positive and negative, and uses its dominance in society to use and dominate the state.
  • civil society has a relative power as well, through its capability of creating social movements and associations
  • Capitalism has historically been a pendulum between the private and the public sector
  • However, this configuration is changing,
  • the endangerment of the biosphere through the workings of ‘selfish’ market players; the second is the role of the new digital commons.
  • participatory politics
  • Peer production gives us an advance picture of how a commons-oriented society would look like. At its core is a commons and a community contributing to it, either voluntarily, or as paid entrepreneurial employees. It does this through collaborative platforms using open standards. Around the commons emerges enterprises that create added value to operate on the marketplace, but also help the maintenance and the expansion of the commons they rely on. A third partner are the for-benefit associations that maintain the infrastructure of cooperation. Public authorities could play a role if they wanted to support existing commons or the creation of new commons, for the value they bring to society.
  • if a commons is not created as in the case of the digital commons, it is something that is inherited from nature or former generations, given in trust and usufruct, so that it can be transmitted to our descendents. The proper institution for such commons is therefore the trust, which is a corporate form that cannot touch its principal capital, but has to maintain it.
Kurt Laitner

Inequality: Why egalitarian societies died out - opinion - 30 July 2012 - New Scientist - 0 views

  • FOR 5000 years, humans have grown accustomed to living in societies dominated by the privileged few. But it wasn't always this way. For tens of thousands of years, egalitarian hunter-gatherer societies were widespread. And as a large body of anthropological research shows, long before we organised ourselves into hierarchies of wealth, social status and power, these groups rigorously enforced norms that prevented any individual or group from acquiring more status, authority or resources than others.*
  • How, then, did we arrive in the age of institutionalised inequality? That has been debated for centuries. Philosopher Jean-Jacques Rousseau reasoned in 1754 that inequality was rooted in the introduction of private property. In the mid-19th century, Karl Marx and Friedrich Engels focused on capitalism and its relation to class struggle. By the late 19th century, social Darwinists claimed that a society split along class lines reflected the natural order of things - as British philosopher Herbert Spencer put it, "the survival of the fittest". (Even into the 1980s there were some anthropologists who held this to be true - arguing that dictators' success was purely Darwinian, providing estimates of the large numbers of offspring sired by the rulers of various despotic societies as support.)
  • But by the mid-20th century a new theory began to dominate. Anthropologists including Julian Steward, Leslie White and Robert Carneiro offered slightly different versions of the following story: population growth meant we needed more food, so we turned to agriculture, which led to surplus and the need for managers and specialised roles, which in turn led to corresponding social classes.
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  • One line of reasoning suggests that self-aggrandising individuals who lived in lands of plenty ascended the social ranks by exploiting their surplus - first through feasts or gift-giving, and later by outright dominance
  • At the group level, argue anthropologists Peter Richerson and Robert Boyd, improved coordination and division of labour allowed more complex societies to outcompete the simpler, more equal societies
  • From a mechanistic perspective, others argued that once inequality took hold - as when uneven resource-distribution benefited one family more than others - it simply became ever more entrenched. The advent of agriculture and trade resulted in private property, inheritance, and larger trade networks, which perpetuated and compounded economic advantages.
  • Many theories about the spread of stratified society begin with the idea that inequality is somehow a beneficial cultural trait that imparts efficiencies, motivates innovation and increases the likelihood of survival. But what if the opposite were true?
  • In a demographic simulation that Omkar Deshpande, Marcus Feldman and I conducted at Stanford University, California, we found that, rather than imparting advantages to the group, unequal access to resources is inherently destabilising and greatly raises the chance of group extinction in stable environments.
  • Counterintuitively, the fact that inequality was so destabilising caused these societies to spread by creating an incentive to migrate in search of further resources. The rules in our simulation did not allow for migration to already-occupied locations, but it was clear that this would have happened in the real world, leading to conquests of the more stable egalitarian societies - exactly what we see as we look back in history.
  • In other words, inequality did not spread from group to group because it is an inherently better system for survival, but because it creates demographic instability, which drives migration and conflict and leads to the cultural - or physical - extinction of egalitarian societies.
  • Egalitarian societies may have fostered selection on a group level for cooperation, altruism and low fertility (which leads to a more stable population), while inequality might exacerbate selection on an individual level for high fertility, competition, aggression, social climbing and other selfish traits.
Kurt Laitner

The basic orientation of p2p theory towards societal reform: transforming civil society... - 1 views

  • under the ‘leadership’ of corporations and those members of our society who have access to capital.
  • Despite all democratic advances, the state forms have clearly been captured by private interests.
  • in a capitalist system, ‘civil society’ is not directly productive of the goods and services that we need to survive, live and thrive
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  • everything that needs to be made, has to be designed through collaborative innovation in the first place
  • continuous interchange and dialogue of citizens as they determine their collective life
  • Both civil society and the notion of citizenship can be criticized for being insufficiently inclusionary, and therefore as ‘mechanisms of exclusion’.
  • consisting of shared depositories of knowledge, code and design; the communities of contributors and users of such commons
  • infrastructures of collaboration, which are managed by a new type of ‘for-benefit associations’
  • democratically governed by all participants and stakeholders in such commons
    • Kurt Laitner
       
      hmm
  • which are not derived or secondary from either the private or state forms.
  • civil society is the locus of the shared abundance of value creation, and the place for the continual dialogue regarding the necessities of common life.
  • democratically decide
    • Kurt Laitner
       
      ? our values need be expressed in every action within the matrix, not just when a 'vote' is held, in fact general democratic 'voting' should probably disappear
  • the ‘common good’ of society as a whole
    • Kurt Laitner
       
      there is no such thing
  • The difference is that the commons where the immaterial value is created are positioned in a field of abundance characteristic for non-rival or anti-rival goods; while the for-benefit associations are responsible for the sometimes contentious allocation of rival infrastructures.
    • Kurt Laitner
       
      !!!
  • Whereas the commons themselves are plurarchies based on permissionless contribution, forking and other rights guaranteeing the diversity of contributions and contributors; the for-benefit associations are democratically governed.
  • true reform of the private sector and the corporate form.
    • Kurt Laitner
       
      really?
  • Under conditions of the rule of capital, for-profit corporations are beholden to work for the interests of the shareholders. This format allows for the accumulation of capital, but also indirectly of political power, through the power of money to influence politics and politicians. For-profit corporations are part of a system of infinite growth and compound interest, must continuously compete with other corporations, and therefore, also minimize costs. For-profit corporations are designed to ignore negative environmental externalities by avoiding to pay the costs associated with them; and to ignore positive social externalities, also by avoiding to pay for them. In terms of sustainability, corporations practice planned obsolescence as a rule, because while the market is a scarcity allocation mechanism, capitalism itself is a scarcity maintenance and creation mechanism. Anti-sustainable practices are systemic and part of the DNA of the for-profit corporation.
  • Under conditions of peer production, design and innovation moves to commons-based communitiies, which lack the incentive for unsustainable design; products are inherently design for sustainability, and the production process itself is designed for openness and distribution.
  • designed to make the commoners and the commons themselves sustainable, by not ‘leaking’ surplus value to external shareholders
  • mission-oriented, community supportive, sustainability-oriented corporate forms, that operate in the marketplace but do not themselves reproduce capitalism.
  • surplus value stays within the commons, allows its autonomous social reproduction, and sustains the commoners
  • ethical mechanism that subsumes profit making under the social goal of strengthening the commons.
  • because commons and their communities are themselves specific, and do not automatically take into account the common good of society as a whole .
  • A Partner State functions center around enabling and empowering social production and abandons some of the paternalistic aspects of the welfare state by focusing on strengthening the possibilities of autonomy.
  • mobilization of social forces to obtain a new social contract
  •  
    Good synopsis of the big picture by Michel
Tiberius Brastaviceanu

POWER-CURVE SOCIETY: The Future of Innovation, Opportunity and Social Equity in the Eme... - 1 views

  • how technological innovation is restructuring productivity and the social and economic impact resulting from these changes
  • concern about the technological displacement of jobs, stagnant middle class income, and wealth disparities in an emerging "winner-take-all" economy
  • personal data ecosystems that could potentially unlock a revolutionary wave of individual economic empowerment
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  • the bell curve described the wealth and income distribution of American society
  • As the technology boom of the 1990s increased productivity, many assumed that the rising water level of the economy was raising all those middle class boats. But a different phenomenon has also occurred. The wealthy have gained substantially over the past two decades while the middle class has remained stagnant in real income, and the poor are simply poorer.
  • America is turning into a power-curve society: one where there are a relative few at the top and a gradually declining curve with a long tail of relatively poorer people.
  • For the first time since the end of World War II, the middle class is apparently doing worse, not better, than previous generations.
  • an alarming trend
  • What is the role of technology in these developments?
  • a sweeping look at the relationship between innovation and productivity
  • New Economy of Personal Information
  • Power-Curve Society
  • the future of jobs
  • the report covers the social, policy and leadership implications of the “Power-Curve Society,”
  • World Wide Web
  • as businesses struggle to come to terms with this revolution, a new set of structural innovations is washing over businesses, organizations and government, forcing near-constant adaptation and change. It is no exaggeration to say that the explosion of innovative technologies and their dense interconnections is inventing a new kind of economy.
  • the new technologies are clearly driving economic growth and higher productivity, the distribution of these benefits is skewed in worrisome ways.
  • the networked economy seems to be producing a “power-curve” distribution, sometimes known as a “winner-take-all” economy
  • Economic and social insecurity is widespread.
  • major component of this new economy, Big Data, and the coming personal data revolution fomenting beneath it that seeks to put individuals, and not companies or governments, at the forefront. Companies in the power-curve economy rely heavily on big databases of personal information to improve their marketing, product design, and corporate strategies. The unanswered question is whether the multiplying reservoirs of personal data will be used to benefit individuals as consumers and citizens, or whether large Internet companies will control and monetize Big Data for their private gain.
  • Why are winner-take-all dynamics so powerful?
  • appear to be eroding the economic security of the middle class
  • A special concern is whether information and communications technologies are actually eliminating more jobs than they are creating—and in what countries and occupations.
  • How is the power-curve economy opening up opportunities or shutting them down?
  • Is it polarizing income and wealth distributions? How is it changing the nature of work and traditional organizations and altering family and personal life?
  • many observers fear a wave of social and political disruption if a society’s basic commitments to fairness, individual opportunity and democratic values cannot be honored
  • what role government should play in balancing these sometimes-conflicting priorities. How might educational policies, research and development, and immigration policies need to be altered?
  • The Innovation Economy
  • Conventional economics says that progress comes from new infusions of capital, whether financial, physical or human. But those are not necessarily the things that drive innovation
  • What drives innovation are new tools and then the use of those new tools in new ways.”
  • at least 50 percent of the acceleration of productivity over these years has been due to ICT
  • economists have developed a number of proxy metrics for innovation, such as research and development expenditures.
  • Atkinson believes that economists both underestimate and overestimate the scale and scope of innovation.
  • Calculating the magnitude of innovation is also difficult because many innovations now require less capital than they did previously.
  • Others scholars
  • see innovation as going in cycles, not steady trajectories.
  • A conventional approach is to see innovation as a linear, exponential phenomenon
  • leads to gross errors
  • Atkinson
  • believes that technological innovation follows the path of an “S-curve,” with a gradual increase accelerating to a rapid, steep increase, before it levels out at a higher level. One implication of this pattern, he said, is that “you maximize the ability to improve technology as it becomes more diffused.” This helps explain why it can take several decades to unlock the full productive potential of an innovation.
  • innovation keeps getting harder. It was pretty easy to invent stuff in your garage back in 1895. But the technical and scientific challenges today are huge.”
  • costs of innovation have plummeted, making it far easier and cheaper for more people to launch their own startup businesses and pursue their unconventional ideas
  • innovation costs are plummeting
  • Atkinson conceded such cost-efficiencies, but wonders if “the real question is that problems are getting more complicated more quickly than the solutions that might enable them.
  • we may need to parse the different stages of innovation: “The cost of innovation generally hasn’t dropped,” he argued. “What has become less expensive is the replication and diffusion of innovation.”
  • what is meant by “innovation,”
  • “invention plus implementation.”
  • A lot of barriers to innovation can be found in the lack of financing, organizational support systems, regulation and public policies.
  • 90 percent of innovation costs involve organizational capital,”
  • there is a serious mismatch between the pace of innovation unleashed by Moore’s Law and our institutional and social capacity to adapt.
  • This raises the question of whether old institutions can adapt—or whether innovation will therefore arise through other channels entirely. “Existing institutions are often run by followers of conventional wisdom,”
  • The best way to identify new sources of innovation, as Arizona State University President Michael Crow has advised, is to “go to the edge and ignore the center.”
  • Paradoxically, one of the most potent barriers to innovation is the accelerating pace of innovation itself.
  • Institutions and social practice cannot keep up with the constant waves of new technologies
  • “We are moving into an era of constant instability,”
  • “and the half-life of a skill today is about five years.”
  • Part of the problem, he continued, is that our economy is based on “push-based models” in which we try to build systems for scalable efficiencies, which in turn demands predictability.
  • The real challenge is how to achieve radical institutional innovations that prepare us to live in periods of constant two- or three-year cycles of change. We have to be able to pick up new ideas all the time.”
  • pace of innovation is a major story in our economy today.
  • The App Economy consists of a core company that creates and maintains a platform (such as Blackberry, Facebook or the iPhone), which in turn spawns an ecosystem of big and small companies that produce apps and/or mobile devices for that platform
  • tied this success back to the open, innovative infrastructure and competition in the U.S. for mobile devices
  • standard
  • The App Economy illustrates the rapid, fluid speed of innovation in a networked environment
  • crowdsourcing model
  • winning submissions are
  • globally distributed in an absolute sense
  • problem-solving is a global, Long Tail phenomenon
  • As a technical matter, then, many of the legacy barriers to innovation are falling.
  • small businesses are becoming more comfortable using such systems to improve their marketing and lower their costs; and, vast new pools of personal data are becoming extremely useful in sharpening business strategies and marketing.
  • Another great boost to innovation in some business sectors is the ability to forge ahead without advance permission or regulation,
  • “In bio-fabs, for example, it’s not the cost of innovation that is high, it’s the cost of regulation,”
  • This notion of “permissionless innovation” is crucial,
  • “In Europe and China, the law holds that unless something is explicitly permitted, it is prohibited. But in the U.S., where common law rather than Continental law prevails, it’s the opposite
Kurt Laitner

Towards a Material Commons | Guerrilla Translation! - 0 views

  • the modes of communication we use are very tightly coupled with the modes of production that finance them
  • I’m focused on the policy formation around this transition to a new, open knowledge and commons-based economy, and that’s the research work I’m doing here
  • The problem is I can only make a living by still working for capital.
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  • We now have a technology which allows us to globally scale small group dynamics, and to create huge productive communities, self-organized around the collaborative production of knowledge, code, and design. But the key issue is that we are not able to live from that, right
  • A lot of co-ops have been neo-liberalizing, as it were, have become competitive enterprises competing against other companies but also against other co-ops, and they don’t share their knowledge
  • We cannot create our own livelihood within that sphere
  • instead of having a totally open commons, which allows multinationals to use our commons and reinforce the system of capital, the idea is to keep the accumulation within the sphere of the commons.
  • The result would be a type of open cooperative-ism, a kind of synthesis or convergence between peer production and cooperative modes of production
  • then the material work, the work of working for clients and making a livelihood, would be done through co-ops
  • But it hasn’t had much of a direct connection to this emerging commons movement, which shares so many of the values and  principles of the traditional cooperative movement.
  • There’s also a lot of peer-to-peer work going on, but it’s not very well versed around issues like cooperative organization, formal or legal forms of ownership, which are based on reciprocity and cooperation, and how to interpret the commons vision with a structure, an organizational structure and a legal structure that actually gives it economic power, market influence, and a means of connecting it to organizational forms that have durability over the long-term.
  • The young people, the developers in open source or free software, the people who are in co-working centers, hacker spaces, maker spaces. When they are thinking of making a living, they think startups
  • They have a kind of generic reaction, “oh, let’s do a startup”, and then they look for venture funds. But this is a very dangerous path to take
  • Typically, the venture capital will ask for a controlling stake, they have the right to close down your start up whenever they feel like it, when they feel that they’re not going to make enough money
  • Don’t forget that with venture capital, only 1 out of 10 companies will actually make it, and they may be very rich, but it’s a winner-take-all system
  • we don’t have what Marx used to call social reproduction
  • I would like John to talk about the solidarity co-ops, and how that integrates the notion of the commons or the common good in the very structure of the co-op
  • They don’t have a commons of design or code, they privatize and patent, just like private competitive enterprise, their knowledge
  • Cooperatives, which are basically a democratic and collective form of enterprise where members have control rights and democratically direct the operations of the co-op, have been the primary stakeholders in any given co-op – whether it’s a consumer co-op, or a credit union, or a worker co-op.
  • Primarily, the co-op is in the service of its immediate members
  • What was really fascinating about the social co-ops was that, although they had members, their mission was not only to serve the members but also to provide service to the broader community
  • In the city of Bologna, for example, over 87% of the social services provided in that city are provided through contract with social co-ops
  • democratically run
  • much more participatory, and a much more engaged model
  • The difference, however, is that the structure of social co-ops is still very much around control rights, in other words, members have rights of control and decision-making within how that organization operates
  • And it is an incorporated legal structure that has formal recognition by the legislation of government of the state, and it has the power, through this incorporated power, to negotiate with and contract with government for the provision of these public services
  • In Québec they’re called Solidarity co-ops
  • So, the social economy, meaning organizations that have a mutual aim in their purpose, based on the principles of reciprocity, collective benefit, social benefit, is emerging as an important player for the design and delivery of public services
  • This, too, is in reaction to the failure of the public market for provision of services like affordable housing or health care or education services
  • This is a crisis in the role of the state as a provider of public services. So the question has emerged: what happens when the state fails to provide or fulfill its mandate as a provider or steward of public goods and services, and what’s the role of civil society and the social economy in response?
  • we have commonses of knowledge, code and design. They’re more easily created, because as a knowledge worker, if you have access to the network and some means, however meager, of subsistence, through effort and connection you can actually create knowledge. However, this is not the case if you move to direct physical production, like the open hardware movement
  • I originally encountered Michel after seeing some talks by Benkler and Lessig at the Wizard of OS 4, in 2006, and I wrote an essay criticizing that from a materialist perspective, it was called “The creative anti-commons and the poverty of networks”, playing on the terms that both those people used.
  • In hardware, we don’t see that, because you need to buy material, machines, plastic, metal.
  • Some people have called the open hardware community a “candy” economy, because if you’re not part of these open hardware startups, you’re basically not getting anything for your efforts
  • democratic foundations like the Apache foundation
  • They conceive of peer production, especially Benkler, as being something inherently immaterial, a form of production that can only exist in the production of immaterial wealth
  • From my materialist point of view, that’s not a mode of production, because a mode of production must, in the first place, reproduce its productive inputs, its capital, its labor, and whatever natural wealth it consumes
  • From a materialist point of view, it becomes  obvious that the entire exchange value produced in these immaterial forms would be captured by the same old owners of materialist wealth
  • different definition of peer production
  • independent producers collectively sharing a commons of productive assets
  • I wanted to create something like a protocol for the formation and allocation of physical goods, the same way we have TCP/IP and so forth, as a way to allocate immaterial goods
  • share and distribute and collectively create immaterial wealth, and become independent producers based on this collective commons.
  • One was the Georgist idea of using rent, economic rent, as a fundamental mutualizing source of wealth
  • Mutualizing unearned income
  • So, the unearned income, the portion of income derived from ownership of productive assets is evenly distributed
  • This protocol would seek to normalize that, but in a way that doesn’t require administration
  • typical statist communist reaction to the cooperative movement is saying that cooperatives can exclude and exploit one another
  • But then, as we’ve seen in history, there’s something that develops called an administrative class,  which governs over the collective of cooperatives or the socialist state, and can become just as counterproductive and often exploitive as capitalist class
  • So, how do we create cooperation among cooperatives, and distribution of wealth among cooperatives, without creating this administrative class?
  • This is why I borrowed from the work of Henry George and Silvio Gesell in created this idea of rent sharing.
  • This is not done administratively, this is simply done as a protocol
  • The idea is that if a cooperative wants an asset, like, an example is if one of the communes would like to have a tractor, then essentially the central commune is like a bond market. They float a bond, they say I want a tractor, I am willing to pay $200 a month for this tractor in rent, and other members of the cooperative can say, hey, yeah, that’s a good idea,we think that’s a really good allocation of these productive assets, so we are going to buy these bonds. The bond sale clears, the person gets the tractor, the money from the rent of the tractor goes back to clear the bonds, and  after that, whatever further money is collected through the rent on this tractor – and I don’t only mean tractors, same would be applied to buildings, to land, to any other productive assets – all this rent that’s collected is then distributed equally among all of the workers.
  • The idea is that people earn income not only by producing things, but by owning the means of production, owning productive assets, and our society is unequal because the distribution of productive assets is unequal
  • This means that if you use your exact per capita share of property, no more no less than what you pay in rent and what you received in social dividend, will be equal
  • But if you’re not working at that time, because you’re old, or otherwise unemployed, then obviously the the productive assets that you will be using will be much less than the mean and the median, so what you’ll receive as dividend will be much more than what you pay in rent, essentially providing a basic income
  • venture communism doesn’t seek to control the product of the cooperatives
  • It doesn’t seek to limit, control, or even tell them how they should distribute it, or under what means; what they produce is entirely theirs, it’s only the collective management of the commons of productive assets
  • On paper this would seem to work, but the problem is that this assumes that we have capital to allocate in this way, and that is not the case for most of the world workers
  • how do we get to that stage?
  • other two being counter politics and insurrectionary finance
  • do we express our activism through the state, or do we try to achieve our goals by creating the alternative society outside
  • pre-figurative politics, versus statist politics
  • My materialist background tells me that when you sell your labor on the market, you have nothing more than your subsistence costs at the end of it, so where is this wealth meant to come from
  • I believe that the only reason that we have any extra wealth beyond subsistence is because of organized social political struggle; because we have organized in labor movements, in the co-op movement, and in other social forms
  • To create the space for prefiguring presupposes engagement with the state, and struggle within parliaments, and struggle within the public social forum
  • Instead, we should think that no, we must engage in the state in order to protect our ability to have alternative societies
  • We can only get rid of the state in these areas once we have alternative, distributed, cooperative means to provide those same functions
  • We can only eliminate the state from these areas once they actually exist, which means we actually have to build them
  • What I mean by insurrectionary finance is that we have to acknowledge that it’s not only forming capital and distributing capital, it’s also important how intensively we use capital
  • I’m not proposing that the cooperative movement needs to engage in the kind of derivative speculative madness that led to the financial crisis, but at the same time we can’t… it can’t be earn a dollar, spend a dollar
  • We have to find ways to create liquidity
  • to deal with economic cycles
  • they did things the organized left hasn’t been able to do, which is takeover industrial means of production
  • if they can take over these industrial facilities, just in order to shut them down and asset strip them, why can’t we take them over and mutualize them?
  • more ironic once you understand that the source of investment that Milken and his colleagues were working with were largely workers pension funds
  • idea of venture communism
  • pooling, based on the capture of unearned income
  • in Québec, there is a particular form of co-op that’s been developed that allows small or medium producers to pool their capital to purchase machinery and to use it jointly
  • The other idea I liked was trying to minimize a management class
  • much more lean and accountable because they are accountable to boards of directors that represent the interests of the members
  • I’ve run into this repeatedly among social change activists who immediately recoil at the notion of thinking about markets and capital, as part of their change agenda
  • I had thought previously, like so many, that economics is basically a bought discipline, and that it serves the interests of existing elites. I really had a kind of reaction against that
  • complete rethinking of economics
  • recapture the initiative around vocabulary, and vision, with respect to economics
  • reimagining and reinterpreting, for a popular and common good, the notion of market and capital
  • advocating for a vision of social change that isn’t just about politics, and isn’t just about protest, it has to be around how do we reimagine and reclaim economics
  • markets actually belong to communities and people
  • capital wasn’t just an accumulated wealth for the rich
  • I think what we’re potentially  talking about here is to make the social economy hyper-productive, hyper-competitive, hyper-cooperative
  • The paradox is that capital already knows this. Capital is investing in these peer production projects
  • Part of the proposal of the FLOK society project in Ecuador will be to get that strategic reorganization to make the social economy strategic
  •  
    A lot of really interesting points of discussion in here.
Steve Bosserman

Instead of Student Loans, Investing in Futures - NYTimes.com - 0 views

  •  
    So how do we finance something that is extremely valuable both for individuals and for society - something that, in most cases, should happen, but often won't happen because the risks are too high? The best way is to spread the risk. That's how insurance works. In Lumni's case, students share the risk with investors, who make more or less based on how well the students do. But they also share it with one another. Lumni pools its investments into funds to balance out the risks. They know that some students will run into difficulties, some will achieve average success, and some will do very well - but they don't know in advance how any individual student will fare. And students don't know this themselves. Through diversification, however, their funds can achieve stable returns. What this means is that the students who have the biggest problems benefit the most. And, in effect, those who decide to become investment bankers end up subsidizing the ones who decide to become social workers. Since a good society needs many different roles fulfilled, everyone benefits. That, at least, is the theory. Economists are skeptical about human capital contracts - which were first proposed by Milton Friedman in the 1950s - because they have many potential problems and little track record. But Lumni seems to be making them work - at least on a small scale. Whether it can succeed at a larger level remains to be seen.
Tiberius Brastaviceanu

Is Shame Necessary? | Conversation | Edge - 0 views

  • What is shame's purpose? Is shame still necessary?
  • Shame is what is supposed to occur after an individual fails to cooperate with the group.
  • Whereas guilt is evoked by an individual's standards, shame is the result of group standards. Therefore, shame, unlike guilt, is felt only in the context of other people.
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  • Many animals use visual observations to decide whether to work with others.
  • humans are more cooperative when they sense they're being watched.
  • The feeling of being watched enhances cooperation, and so does the ability to watch others. To try to know what others are doing is a fundamental part of being human
  • Shame serves as a warning to adhere to group standards or be prepared for peer punishment. Many individualistic societies, however, have migrated away from peer punishment toward a third-party penal system
  • Shame has become less relevant in societies where taking the law into one's own hands is viewed as a breach of civility.
  • Many problems, like most concerning the environment, are group problems. Perhaps to solve these problems we need a group emotion. Maybe we need shame.
  • Guilt prevails in many social dilemmas
  • It is perhaps unsurprising that a set of tools has emerged to assuage this guilt
  • Guilt abounds in many situations where conservation is an issue.
  • The problem is that environmental guilt, though it may well lead to conspicuous ecoproducts, does not seem to elicit conspicuous results.
  • The positive effect of idealistic consumers does exist, but it is masked by the rising demand and numbers of other consumers.
  • Guilt is a valuable emotion, but it is felt by individuals and therefore motivates only individuals. Another drawback is that guilt is triggered by an existing value within an individual. If the value does not exist, there is no guilt and hence no action
  • Getting rid of shaming seems like a pretty good thing, especially in regulating individual behavior that does no harm to others. In eschewing public shaming, society has begun to rely more heavily on individual feelings of guilt to enhance cooperation.
  • five thousand years ago, there arose another tool: writing
  • Judges in various states issue shaming punishments,
  • shaming by the state conflicts with the law's obligation to protect citizens from insults to their dignity.
  • What if government is not involved in the shaming?
  • Is this a fair use of shaming? Is it effective?
  • Shaming might work to change behavior in these cases, but in a world of urgent, large-scale problems, changing individual behavior is insignificant
  • vertical agitation
  • Guilt cannot work at the institutional level, since it is evoked by individual scruples, which vary widely
  • But shame is not evoked by scruples alone; since it's a public sentiment, it also affects reputation, which is important to an institution.
  • corporate brand reputation outranked financial performance as the most important measure of success
  • shame and reputation interact
  • in our early evolution we could gauge cooperation only firsthand
  • Shaming, as noted, is unwelcome in regulating personal conduct that doesn't harm others. But what about shaming conduct that does harm others?
  • why we learned to speak.1
  • Language
  • The need to accommodate the increasing number of social connections and monitor one another could be
  • allowed for gossip, a vector of social information.
  • in cooperation games that allowed players to gossip about one another's performance, positive gossip resulted in higher cooperation.
  • Of even greater interest, gossip affected the players' perceptions of others even when they had access to firsthand information.
  • Human society today is so big that its dimensions have outgrown our brains.
  • What tool could help us gossip in a group this size?
  • We can use computers to simulate some of the intimacy of tribal life, but we need humans to evoke the shame that leads to cooperation. The emergence of new tools— language, writing, the Internet—cannot completely replace the eyes. Face-to-face interactions, such as those outside Trader Joe's stores, are still the most impressive form of dissent.
  • what is stopping shame from catalyzing social change? I see three main drawbacks:
  • Today's world is rife with ephemeral, or "one-off," interactions.
  • Research shows, however, that if people know they will interact again, cooperation improves
  • Shame works better if the potential for future interaction is high
  • In a world of one-off interactions, we can try to compensate for anonymity with an image score,
  • which sends a signal to the group about an individual's or institution's degree of cooperation.
  • Today's world allows for amorphous identities
  • It's hard to keep track of who cooperates and who doesn't, especially if it's institutions you're monitoring
  • Shaming's biggest drawback is its insufficiency.
  • Some people have no shame
  • shame does not always encourage cooperation from players who are least cooperative
  • a certain fraction of a given population will always behave shamelessly
  • if the payoff is high enough
  • There was even speculation that publishing individual bankers' bonuses would lead to banker jealousy, not shame
  • shame is not enough to catalyze major social change
  • This is why punishment remains imperative.
  • Even if shaming were enough to bring the behavior of most people into line, governments need a system of punishment to protect the group from the least cooperative players.
  • Today we are faced with the additional challenge of balancing human interests and the interests of nonhuman life.
  •  
    The role of non-rational mechanisms in convergence - social emotions like shame and guilt 
Kurt Laitner

Did the Other Shoe Just Drop? Big Banks Hit with Monster $250 Billion Lawsuit in Housin... - 0 views

  • The reason for this is that credit is merely one way by which a society manages the distribution of goods and services. . . . A credit collapse . . . doesn’t make the energy, raw materials, and labor vanish into some fiscal equivalent of a black hole; they’re all still there, in whatever quantities they were before the credit collapse, and all that’s needed is some new way to allocate them to the production of goods and services.
  • Better would be to have an alternative system in place and ready to implement before the boom drops.
  • On a national level, when the Wall Street credit system fails, the government can turn to the innovative model devised by our colonial forebears and start issuing its own currency and credit—a power now usurped by private banks but written into the US Constitution as belonging to Congress
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  • The chief problem with the paper scrip of the colonial governments was the tendency to print and spend too much.
  • he Pennsylvania colonists corrected that systemic flaw by establishing a publicly-owned bank, which lent money to farmers and tradespeople at interest
  • To get the funds into circulation to cover the interest, some extra scrip was printed and spent on government services.
  • The interest returned to public coffers, to be spent on the common weal.
  • The result was a system of money and credit that was sustainable without taxes, price inflation or government debt
  •  
    "The reason for this is that credit is merely one way by which a society manages the distribution of goods and services. . . . A credit collapse . . . doesn't make the energy, raw materials, and labor vanish into some fiscal equivalent of a black hole; they're all still there, in whatever quantities they were before the credit collapse, and all that's needed is some new way to allocate them to the production of goods and services." and  "Better would be to have an alternative system in place and ready to implement before the boom drops." taken together may imply something other than the article's proposed solution of  "On a national level, when the Wall Street credit system fails, the government can turn to the innovative model devised by our colonial forebears and start issuing its own currency and credit-a power now usurped by private banks but written into the US Constitution as belonging to Congress"
Kurt Laitner

On the Phenomenon of Bullshit Jobs - STRIKE! - 1 views

  • financial services or telemarketing, or the unprecedented expansion of sectors like corporate law, academic and health administration, human resources, and public relations
  • provide administrative, technical, or security support for these industries, or for that matter the whole host of ancillary industries (dog-washers, all-night pizza deliverymen) that only exist because everyone else is spending so much of their time working in all the other ones
  • It’s as if someone were out there making up pointless jobs just for the sake of keeping us all working. And here, precisely, lies the mystery. In capitalism, this is exactly what is not supposed to happen
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  • Sure, in the old inefficient socialist states like the Soviet Union, where employment was considered both a right and a sacred duty, the system made up as many jobs as they had to (this is why in Soviet department stores it took three clerks to sell a piece of meat)
  • working 40 or even 50 hour weeks on paper, but effectively working 15 hours just as Keynes predicted, since the rest of their time is spent organising or attending motivational seminars
  • The ruling class has figured out that a happy and productive population with free time on their hands is a mortal danger
  • The answer clearly isn’t economic: it’s moral and political
  • And, on the other hand, the feeling that work is a moral value in itself, and that anyone not willing to submit themselves to some kind of intense work discipline for most of their waking hours deserves nothing, is extraordinarily convenient for them
  • Hell is a collection of individuals who are spending the bulk of their time working on a task they don’t like and are not especially good at
  • they all become so obsessed with resentment at the thought that some of their co-workers might be spending more time making cabinets
  • It’s not entirely clear how humanity would suffer were all private equity CEOs, lobbyists, PR researchers, actuaries, telemarketers, bailiffs or legal consultants to similarly vanish. (Many suspect it might markedly improve.)
  • plagued with debts and a newborn daughter, ended up, as he put it, “taking the default choice of so many directionless folk: law school
  • Now he’s a corporate lawyer working in a prominent New York firm. He was the first to admit that his job was utterly meaningless, contributed nothing to the world, and, in his own estimation, should not really exist
  • I would not presume to tell someone who is convinced they are making a meaningful contribution to the world that, really, they are not. But what about those people who are themselves convinced their jobs are meaningless?
  • (Answer: if 1% of the population controls most of the disposable wealth, what we call “the market” reflects what they think is useful or important, not anybody else.)
  • should you meet them at parties and admit that you do something that might be considered interesting (an anthropologist, for example), will want to avoid even discussing their line of work entirely
  • This is a profound psychological violence here. How can one even begin to speak of dignity in labour when one secretly feels one’s job should not exist?
  • Yet it is the peculiar genius of our society that its rulers have figured out a way, as in the case of the fish-fryers, to ensure that rage is directed precisely against those who actually do get to do meaningful work
  • in our society, there seems a general rule that, the more obviously one’s work benefits other people, the less one is likely to be paid for it
  • There’s a lot of questions one could ask here, starting with, what does it say about our society that it seems to generate an extremely limited demand for talented poet-musicians, but an apparently infinite demand for specialists in corporate law?
  • Even more perverse, there seems to be a broad sense that this is the way things should b
  • You can see it when tabloids whip up resentment against tube workers for paralysing London during contract disputes: the very fact that tube workers can paralyse London shows that their work is actually necessary, but this seems to be precisely what annoys people
  • It’s even clearer in the US, where Republicans have had remarkable success mobilizing resentment against school teachers, or auto workers (and not, significantly, against the school administrators or auto industry managers who actually cause the problems)
  • It’s as if they are being told “but you get to teach children! Or make cars! You get to have real jobs! And on top of that you have the nerve to also expect middle-class pensions and health care?”
  • If someone had designed a work regime perfectly suited to maintaining the power of finance capital, it’s hard to see how they could have done a better job
  • The remainder are divided between a terrorised stratum of the – universally reviled – unemployed and a larger stratum who are basically paid to do nothing, in positions designed to make them identify with the perspectives and sensibilities of the ruling class (managers, administrators, etc) – and particularly its financial avatars – but, at the same time, foster a simmering resentment against anyone whose work has clear and undeniable social value
Kurt Laitner

What do we need corporations for and how does Valve's management structure fit into tod... - 0 views

  • Valve’s management model; one in which there are no bosses, no delegation, no commands, no attempt by anyone to tell someone what to do
  • Every social order, including that of ants and bees, must allocate its scarce resources between different productive activities and processes, as well as establish patterns of distribution among individuals and groups of output collectively produced.
  • the allocation of resources, as well as the distribution of the produce, is based on a decentralised mechanism functioning by means of price signals:
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  • Interestingly, however, there is one last bastion of economic activity that proved remarkably resistant to the triumph of the market: firms, companies and, later, corporations. Think about it: market-societies, or capitalism, are synonymous with firms, companies, corporations. And yet, quite paradoxically, firms can be thought of as market-free zones. Within their realm, firms (like societies) allocate scarce resources (between different productive activities and processes). Nevertheless they do so by means of some non-price, more often than not hierarchical, mechanism!
  • they are the last remaining vestiges of pre-capitalist organisation within… capitalism
  • The miracle of the market, according to Hayek, was that it managed to signal to each what activity is best for herself and for society as a whole without first aggregating all the disparate and local pieces of knowledge that lived in the minds and subconscious of each consumer, each designer, each producer. How does this signalling happen? Hayek’s answer (borrowed from Smith) was devastatingly simple: through the movement of prices
  • The idea of spontaneous order comes from the Scottish Enlightenment, and in particular David Hume who, famously, argued against Thomas Hobbes’ assumption that, without some Leviathan ruling over us (keeping us “all in awe”), we would end up in a hideous State of Nature in which life would be “nasty, brutish and short”
  • Hume’s counter-argument was that, in the absence of a system of centralised command, conventions emerge that minimise conflict and organise social activities (including production) in a manner that is most conducive to the Good Life
  • Hayek’s argument was predicated upon the premise that knowledge is always ‘local’ and all attempts to aggregate it are bound to fail. The world, in his eyes, is too complex for its essence to be distilled in some central node; e.g. the state.
  • The idea here is that, through this ever-evolving process, people’s capacities, talents and ideas are given the best chance possible to develop and produce synergies that promote the Common Good. It is as if an invisible hand guides Valve’s individual members to decisions that both unleash each person’s potential and serve the company’s collective interest (which does not necessarily coincide with profit maximisation).
  • Valve differs in that it insists that its employees allocate 100% of their time on projects of their choosing
  • In contrast, Smith and Hayek concentrate their analysis on a single passion: the passion for profit-making
  • Hume also believed in a variety of signals, as opposed to Hayek’s exclusive reliance on price signalling
  • One which, instead of price signals, is based on the signals Valve employees emit to one another by selecting how to allocate their labour time, a decision that is bound up with where to wheel their tables to (i.e. whom to work with and on what)
  • He pointed out simply and convincingly that the cost of subcontracting a good or service, through some market, may be much larger than the cost of producing that good or service internally. He attributed this difference to transactions costs and explained that they were due to the costs of bargaining (with contractors), of enforcing incomplete contracts (whose incompleteness is due to the fact that some activities and qualities cannot be fully described in a written contract), of imperfect monitoring and asymmetrically distributed information, of keeping trade secrets… secret, etc. In short, contractual obligations can never be perfectly stipulated or enforced, especially when information is scarce and unequally distributed, and this gives rise to transaction costs which can become debilitating unless joint production takes place within the hierarchically structured firm. Optimal corporation size corresponds, in Coase’s scheme of things, to a ‘point’ where the net marginal cost of contracting out a service or good (including transaction costs) tends to zero 
  • As Coase et al explained in the previous section, the whole point about a corporation is that its internal organisation cannot turn on price signals (for if it could, it would not exist as a corporation but would, instead, contract out all the goods and services internally produced)
  • Each employee chooses (a) her partners (or team with which she wants to work) and (b) how much time she wants to devote to various competing projects. In making this decision, each Valve employee takes into account not only the attractiveness of projects and teams competing for their time but, also, the decisions of others.
  • Hume thought that humans are prone to all sorts of incommensurable passions (e.g. the passion for a video game, the passion for chocolate, the passion for social justice) the pursuit of which leads to many different types of conventions that, eventually, make up our jointly produced spontaneous order
  • Valve is, at least in one way, more radical than a traditional co-operative firm. Co-ops are companies whose ownership is shared equally among its members. Nonetheless, co-ops are usually hierarchical organisations. Democratic perhaps, but hierarchical nonetheless. Managers may be selected through some democratic or consultative process involving members but, once selected, they delegate and command their ‘underlings’ in a manner not at all dissimilar to a standard corporation. At Valve, by contrast, each person manages herself while teams operate on the basis of voluntarism, with collective activities regulated and coordinated spontaneously via the operations of the time allocation-based spontaneous order mechanism described above.
  • In contrast, co-ops and Valve feature peer-based systems for determining the distribution of a firm’s surplus among employees.
  • There is one important aspect of Valve that I did not focus on: the link between its horizontal management structure and its ‘vertical’ ownership structure. Valve is a private company owned mostly by few individuals. In that sense, it is an enlightened oligarchy: an oligarchy in that it is owned by a few and enlightened in that those few are not using their property rights to boss people around. The question arises: what happens to the alternative spontaneous order within Valve if some or all of the owners decide to sell up?
Tiberius Brastaviceanu

How The Blockchain Will Transform Everything From Banking To Government To Our Identities - 1 views

  • The first generation of the Internet was a great tool for communicating, collaborating and connecting online, but it was not ideal for business. When you send and share information on the Internet, you’re not sending an original but a copy. That’s good for information — it means people have a printing press for information and that information becomes democratized — but if you want to send an asset, it’s a problem. If I send you $100 online, you need to be sure you have it and I don’t, and that I can’t spend the same $100 somewhere else. As a result, we need intermediaries to perform critical roles — to establish identity between two parties in a transaction, and to do all the settlement transaction logic, which includes record-keeping.
  • With blockchain, for the first time, we have a new digital medium for value where anyone can access anything of value — stocks, bonds, money, digital property, titles, deeds — and even things like identity and votes can be moved, stored and managed securely and privately. Trust is not established though a third party but with clever code and mass consensus using a network. That’s got huge implications for intermediaries and businesses and society at large
  • And also with government, as a central repository of information an entity that delivers services.
  • ...35 more annotations...
  • There’s an opportunity to disrupt how those organizations work. Intermediaries, though they do a good job, have a few problems — they’re centralized, which makes them vulnerable to attack or failure
  • They tax the system
  • They capture data
  • They exclude billions of people from the global economy
  • internet of value
  • With blockchain, we can go from redistributing wealth to distributing value and opportunity value fairly a priori, from cradle to grave.
  • creating a true sharing economy by replacing service aggregators like Uber with distributed applications on the blockchain
  • unleashing a new age of entrepreneurship
  • build accountable governments through transparency, smart contracts and revitalized models of democracy.
  • The virtual you is owned by large intermediaries
  • This virtual you knows more about you than you do sometimes
  • So there’s a strange phenomenon from the first generation of the Internet where the most important asset class that’s been created is data —and we don’t control it or own it.
  • individuals taking back their identity through your own personal avatar
  • The financial services industry
  • antiquated
  • a complicated machine that does a simple thing
  • settlement
  • an opportunity to profoundly change the nature of the entire industry. The Starbucks transaction should be instant.
  • At the heart of it, the financial services industry moves value.
  • so this is both an existential threat to the financial services industry and an historic opportunity.
  • Banks trade on trust
  • Within the decade, every single financial asset, which is really just a contract
  • will all move to a blockchain-based format
  • In the accounting world, a lot of firms rely on costly audits to drive their profits
  • With blockchain, you could have a third entry time-stamped in a distributed ledger that could be acceptable to any relevant stakeholders from regulators to shareholders, giving you a perfect record of the truth and thus the financial health of an organization.
  • Nobel-winning economist Ronald Coase argued that firms exist because transaction costs in an open market are greater than the cost of doing things inside the boundaries of the corporation.
  • four costs — of search, coordination, contracting and establishing trust
  • Blockchains will profoundly affect all of these.
  • you can now synthesize trust on an open platform and people who’ve never met can trust each other to do certain things. So this results in a whole number of new business models
  • It turns out the Internet of Everything needs a Ledger of Everything, because a lightbulb buying power from your neighbor’s solar panel definitely won’t use banks or the Visa network
  • Right now, governments take tax revenue from corporations, individuals, licenses and so on. All of that can change. We can first of all have transparency in a radical sense because sunlight is the best disinfectant. Secondly, we can open up governments in a different sense of sharing data.
  • governments can enable self-organization to occur in society where companies, civil society organizations, NGOs, academics, foundations, and government agencies and individual citizens ought to use this data to self-organize and create what we used to call services or forms of public value. The third one has to do with the relationship between citizens and their governments.
  • There are more opportunities to create government by the people for the people
  • Electronic voting won’t be delivered by traditional server technology because it won’t be trusted by citizens
Tiberius Brastaviceanu

If not Global Captalism - then What? - 0 views

  • I posit an optimistic view of the potential for Society from the emergence of a new and “Open” form of Capitalism.
  • Open Capital
  • the concept of “Open” Capital is “so simple…. it repels the mind".
  • ...162 more annotations...
  • Open Capital is defined as “a proportional share in an enterprise for an indeterminate time”
  • ‘Enterprise’ is defined as ‘any entity within which two or more individuals create, accumulate or exchange Value”.
  • Value is to Economics as Energy and Matter are to Physics.
  • The Metaphysics Of Value
  • division between “subject” and “object”.
  • primary reality is “Quality”
  • formless and indefinable
  • not a “thing”
  • a non-intellectual awareness or “pre-intellectual reality”
  • but an event at which the subject becomes aware of the object and before he distinguishes it
  • Quality is the basis of both subject and object
  • distinguish between “Static” and “Dynamic” Quality
  • treating Value as a form of “Quality” as envisioned by Pirsig.
  • Riegel
  • defined “Value” as “ the Relativity of Desire” again implying indeterminacy.
  • Pirsig’s approach Capital may be viewed as “Static” Value and Money as “Dynamic” Value. “Transactions” are the “events” at which individuals (Subjects) interact with each other or with Capital (both as Objects) to create forms of Value and at which “Value judgments” are made based upon a “Value Unit”.
  • The result of these Value Events /Transactions is to create subject/object pairings in the form of data ie Who “owns” or has rights of use in What,
  • at what Price
  • accounting data
  • Neo-Classical” Economics confuses indeterminate Value with a market– determined Price –
  • Data may be static
  • This Data identifies the subject with objects such as tangible ‘Material Value’
  • Data may itself constitute ‘Intellectual Value’
  • It, too, may then be defined in a subject/object pairing through the concept of “intellectual property”.
  • Other forms of Value are however not definable by data:
  • “sentimental” Value
  • Emotional Value’
  • 'Spiritual Value’
  • We may therefore look at the “transaction” or “value event” in a new light.
  • The creation and circulation of Value essentially comprises the concept we know of as “Money”.
  • Money / Dynamic Value
  • “The purpose of money is to facilitate barter by splitting the transaction into two parts, the acceptor of money reserving the power to requisition value from any trader at any time
  • money
  • value unit dissociated from any object
  • monetary unit
  • the basis relative to which other values may be expressed
  • The monetary process is a dynamic one involving the creation and recording of obligations as between individuals and the later fulfilment of these obligations
  • The monetary “Value Event”/ Transaction involves the creation of “Credit”
  • obligation to provide something of equivalent Value at a future point in time.
  • These obligations may be recorded on transferable documents
  • database of “Credit”/obligations is not Money, but temporary “Capital”
  • “Working Capital”
  • Static Value – which only becomes “Money”/ Dynamic Value when exchanged in the transitory Monetary process.
  • what we think of as Money is in fact not tangible “cash” but rather
  • the flow of data between databases of obligations maintained by Credit Institutions
  • or dynamic
  • Banks literally “loan” Money into existence
  • In exchange for an obligation by an Individual to provide to the Bank something of Value
  • Bank’s obligation is merely to provide another obligation at some future time
  • These Bank-issued obligations are therefore
  • claim upon a claim upon Value
  • The true source of Credit is the Individual, not the intermediary Bank
  • this Money they create from nothing despite the fact that it is literally Value-less
  • Thus there is no true sharing of Risk and Reward involved in Lending
  • issue in relation to Credit/Debt and this relates to the nature of Lending itself.
  • the practice of Lending involves an incomplete exchange in terms of risk and reward: a Lender, as opposed to an Investor, has no interest in the outcome of the Loan, and requires the repayment of Principal no matter the ability of the Borrower to repay.
  • Ethical problem
    • Tiberius Brastaviceanu
       
      "The Lender has no interest in the outcome of the loan", i.e doesn't care what happens in the end. The Lender ins not interested in the economical outcome of the Lender-Loner relation. So in fact there is no real risk sharing. the only risk for the Lender is when the Loner doesn't pay back, which is not really a risk... In fact it is a risk for the small bank, who has to buy money from the central bank, but not for the central bank. 
  • Money is not
  • an “Object” circulating but rather a dynamic process of Value creation and exchange by reference to a “Value Unit”.
  • Capital/ Static Value
  • Capital represents the static accumulation of Value
  • Some forms of Capital are “productive”
  • An ethical question
  • in relation to Productive Capital relates to the extent of “property rights” which may be held over it thereby allowing individuals to assert “absolute” permanent and exclusive ownership - in particular in relation to Land
  • our current financial system is based not upon Value but rather a claim upon Value
  • Financial Capital consists of two types:
  • “Debt”
  • “Equity”
  • Interest
  • obligations of finite/temporary duration but with no participation in the assets or revenues
  • absolute and permanent ownership/participation (without obligation) in assets and revenues
  • discontinuity between Debt and Equity
  • at the heart of our current problems as a Society
  • The Enterprise
  • ‘Charitable’ Enterprise
  • ‘Social’ Enterprise
  • Value
  • exchanged in agreed proportions;
  • Value is exchanged for the Spiritual and Emotional Value
  • ‘Commercial’ Enterprise
  • ‘closed’
  • Value are exchanged between a limited number of individuals
  • Early enterprises were partnerships and unincorporated associations
  • need for institutions which outlived the lives of the Members led to the development of the Corporate body with a legal existence independent of its Members
  • The key development in the history of Capitalism was the creation of the ‘Joint Stock’ Corporate with liability limited by shares of a ‘Nominal’ or ‘Par’ value
  • over the next 150 years the Limited Liability Corporate evolved into the Public Limited Liability Corporate
  • Such “Closed” Shares of “fixed” value constitute an absolute and permanent claim over the assets and revenues of the Enterprise to the exclusion of all other “stakeholders” such as Suppliers, Customers, Staff, and Debt Financiers.
  • The latter are essentially ‘costs’ external to the
  • owners of the Enterprise
  • maximise ‘Shareholder Value’
  • There is a discontinuity/ fault-line within the ‘Closed’ Corporate
  • It has the characteristics of what biologists call a ‘semi-permeable membrane’ in the way that it allows Economic Value to be extracted from other stakeholders but not to pass the other way.
    • Tiberius Brastaviceanu
       
      It is a way to extract value from productive systems. It is a system of exploitation. 
  • Capital most certainly is and always has been - through the discontinuity (see diagram) between:‘Fixed’ Capital in the form of shares ie Equity; and ‘Working’ Capital in the form of debt finance, credit from suppliers, pre-payments by customers and obligations to staff and management.
  • irreconcilable conflict between Equity and Debt
  • xchange of Economic Value in a Closed Corporate is made difficult and true sharing of Risk and Reward is simply not possible
  • No Enterprise Model has been capable of resolving this dilemma. Until now.
  • Corporate Partnerships with unlimited liability
  • mandatory for partnerships with more than 20 partners to be incorporated
  • in the USA
  • it is the normal structure for professional partnerships
  • Limited Liability Partnerships
  • In the late 1990's
  • litigation
  • The UK LLP is supremely simple and remarkably flexible.
  • All that is needed is a simple ‘Member Agreement’ – a legal protocol which sets out the Aims, Objectives. Principles of Governance, Revenue Sharing, Dispute Resolution, Transparency and any other matters that Members agree should be included. Amazingly enough, this Agreement need not even be in writing, since in the absence of a written agreement Partnership Law is applied by way of default.
  • The ease of use and total flexibility enables the UK LLP to be utilised in a way never intended – as an ‘Open’ Corporate partnership.
  • ‘Open’ Corporate Partnership
  • concepts which characterise the ‘Open’ Corporate Partnership
  • it is now possible for any stakeholder to become a Member of a UK LLP simply through signing a suitably drafted Member Agreement
  • ‘Open’
  • supplier
  • employee
  • may instead become true Partners in the Enterprise with their interests aligned with other stakeholders.
    • Tiberius Brastaviceanu
       
      Can SENSORICA be a UK LLP?
  • no profit or loss in an Open Corporate Partnership, merely Value creation and exchange between members in conformance with the Member Agreement.
  • Proportional shares
  • in an Enterprise constitute an infinitely divisible, flexible and scaleable form of Capital capable of distributing or accumulating Value organically as the Enterprise itself grows in Value or chooses to distribute it.
  • Emergence of “Open” Capital
  • example of how ‘Temporary Equity’ may operate in practice
  • The Open Capital Partnership (“OCP”)
  • Within the OCP Capital and Revenue are continuous: to the extent that an Investee pays Rental in advance of the due date he becomes an Investor.
  • Open Capital – a new Asset Class
  • create a new asset class of proportional “shares”/partnership interests
  • in Capital holding OCP’s
  • Property Investment Partnerships (“PIP’s”)
  • Open Corporate Partnerships as a Co-operative Enterprise model
  • A Co-operative is not an enterprise structure: it is a set of Principles that may be applied to different types of enterprise structure.
  • Within a Partnership there is no “Profit” and no “Loss”.
  • Partnerships
  • mutual pursuit of the creation and exchange of Value
  • Partners do not compete with each othe
  • the crippling factors in practical terms have been, inter alia: the liability to which Member partners are exposed from the actions of their co-partners on their behalf; limited ability to raise capital.
  • they favour the interests of other stakeholders, are relatively restricted in accessing investment; are arguably deficient in incentivising innovation.
  • The ‘new’ LLP was expressly created to solve the former problem by limiting the liability of Member partners to those assets which they choose to place within its protective ‘semi-permeable membrane’
  • However, the ability to configure the LLP as an “Open” Corporate permits a new and superior form of Enterprise.
  • it is possible to re-organise any existing enterprise as either a partnership or as a partnership of partnerships.
  • the revenues
  • would be divided among Members in accordance with the LLP Agreement. This means that all Members share a common interest in collaborating/co-operating to maximise the Value generated by the LLP collectively as opposed to competing with other stakeholders to maximise their individual share at the other stakeholders’ expense.
  • facilitate the creation of LLP’s as “Co-operatives of Co-operatives”.
  • he ‘Commercial’ Enterprise LLP – where the object is for a closed group of individuals to maximise the value generated in their partnership. There are already over 7,000 of these.
    • Tiberius Brastaviceanu
       
      Can SENSORICA be one of these?
  • the Profit generated in a competitive economy based upon shareholder value and unsustainable growth results from a transfer of risks outwards, and the transfer of reward inwards, leading to a one way transfer of Economic Value.
  • This,
  • will very often impoverish one or more constituency of stakeholders
  • A partnership, however, involves an exchange of value through the sharing of risk and reward.
  • Whether its assets are protected within a corporate entity with limited liability or not, it will always operate co-operatively – for mutual profit.
  • Open Capital, Economics and Politics
  • continuity between Capital as Static Value and Money as Dynamic Value which has never before been possible due to the dichotomy between the absolute/infinite and the absolute/finite durations of the competing claims over assets – “Equity” and “Debt”
  • Open Capital Partnership gives rise to a new form of Financial Capital of indeterminate duration. It enables the Capitalisation of assets and the monetisation of revenue streams in an entirely new way.
  • It is possible to envisage a Society within which individuals are members of a portfolio of Enterprises constituted as partnerships, whether limited in liability or otherwise.
  • Some will be charitable
  • Others will be ‘social’
  • ‘Commercial’ enterprises of all kinds aimed at co-operatively working together to maximise value for the Members.
  • the process has already begun
  • Capitalism
  • superior
  • to all other models, such as Socialism.
  • It can only be replaced by another ‘emergent’ phenomenon, which is adopted ‘virally’ because any Enterprise which does not utilise it will be at a disadvantage to an Enterprise which does.
  • The ‘Open’ Corporate Partnership is: capable of linking any individuals anywhere in respect of collective ownership of assets anywhere; extremely cheap and simple to operate; and because one LLP may be a Member of another it is organically flexible and ‘scaleable’. The phenomenon of “Open Capital” – which is already visible in the form of significant commercial transactions - enables an extremely simple and continuous relationship between those who wish to participate indefinitely in an Enterprise and those who wish to participate for a defined period of time.
  • Moreover, the infinitely divisible proportionate “shares” which constitute ‘Open’ Capital allow stakeholder interests to grow flexibly and organically with the growth in Value of the Enterprise. In legal terms, the LLP agreement is essentially consensual and ‘pre-distributive’: it is demonstrably superior to prescriptive complex contractual relationships negotiated adversarially and subject to subsequent re-distributive legal action. Above all, the ‘Open’ Corporate Partnership is a Co-operative phenomenon which is capable, the author believes, of unleashing the “Co-operative Advantage” based upon the absence of a requirement to pay returns to “rentier” Capitalists.
Kurt Laitner

Club of Amsterdam blog: The impact of culture on education - 0 views

  • For example in some countries the objective of education is: to develop a critical mind, which in other cultures is viewed as absurd. In these countries students are supposed to try to learn as much as possible from the older generation and only when you are fully initiated you may communicate to have ideas of yourself.
  • For example in some countries the objective of education is: to develop a critical mind, which in other cultures is viewed as absurd. In these countries students are supposed to try to learn as much as possible from the older generation and only when you are fully initiated you may communicate to have ideas of yourself.
  • The combined scores for each country explain variations in behavior of people and organizations. The scores indicate the relative differences between cultures.
  • ...13 more annotations...
  • n masculine cultures like USA, UK, Germany, Japan and Italy the dominant values are achievement and success. The dominant values in feminine cultures are consensus seeking, caring for others and quality of life. Sympathy is for the underdog. People try to avoid situations distinguishing clear winners and losers.  In masculine cultures performance and achievement are important. The sympathy is for the winners. Status is important to show success. Feminine cultures like the Scandinavian countries and the Netherlands have a people orientation. Small is beautiful and status is not so important.
  • In masculine cultures like USA, UK, Germany, Japan and Italy the dominant values are achievement and success. The dominant values in feminine cultures are consensus seeking, caring for others and quality of life. Sympathy is for the underdog. People try to avoid situations distinguishing clear winners and losers.  In masculine cultures performance and achievement are important. The sympathy is for the winners. Status is important to show success. Feminine cultures like the Scandinavian countries and the Netherlands have a people orientation. Small is beautiful and status is not so important.
  • In masculine cultures like USA, UK, Germany, Japan and Italy the dominant values are achievement and success. The dominant values in feminine cultures are consensus seeking, caring for others and quality of life. Sympathy is for the underdog. People try to avoid situations distinguishing clear winners and losers.  In masculine cultures performance and achievement are important. The sympathy is for the winners. Status is important to show success. Feminine cultures like the Scandinavian countries and the Netherlands have a people orientation. Small is beautiful and status is not so important.
  • For example in some countries the objective of education is: to develop a critical mind, which in other cultures is viewed as absurd. In these countries students are supposed to try to learn as much as possible from the older generation and only when you are fully initiated you may communicate to have ideas of yourself.
  • c. Masculinity vs. Femininity (MAS) In masculine cultures like USA, UK, Germany, Japan and Italy the dominant values are achievement and success. The dominant values in feminine cultures are consensus seeking, caring for others and quality of life. Sympathy is for the underdog. People try to avoid situations distinguishing clear winners and losers.  In masculine cultures performance and achievement are important. The sympathy is for the winners. Status is important to show success. Feminine cultures like the Scandinavian countries and the Netherlands have a people orientation. Small is beautiful and status is not so important.
  • He defines culture as “the collective programming of the mind that distinguishes the members of one group or category of people from others”.
  • Analyzing his data, Hofstede found five value clusters (or “dimensions”) being the most fundamental in understanding and explaining the differences in answers to the single questions in his questionnaires
  • The five dimensions of national culture identified by Hofstede are:  Power Distance Index (PDI)  Individualism vs. collectivism (IDV)  Masculinity vs. femininity (MAS)  Uncertainty Avoidance Index (UAI)  Long Term Orientation (LTO)
  • Power distance is the extent to which less powerful members of a society accept that power is distributed unequally. In high power-distance cultures everybody has his/her rightful place in society. Old age is respected, and status is important. In low power-distance cultures people try to look younger and powerful people try to look less powerful
  • In individualistic cultures, like almost all the rich Western countries, people look after themselves and their immediate family only; in collectivist cultures like Asia and Africa people belong to "in-groups" who look after them in exchange for loyalty
  • In masculine cultures like USA, UK, Germany, Japan and Italy the dominant values are achievement and success. The dominant values in feminine cultures are consensus seeking, caring for others and quality of life. Sympathy is for the underdog. People try to avoid situations distinguishing clear winners and losers.  In masculine cultures performance and achievement are important. The sympathy is for the winners. Status is important to show success. Feminine cultures like the Scandinavian countries and the Netherlands have a people orientation. Small is beautiful and status is not so important
  • Uncertainty avoidance (or uncertainty control) stands for the extent to which people feel threatened by uncertainty and ambiguity. In cultures with strong uncertainty avoidance, people have a strong emotional need for rules and formality to structure life
  • The last element of culture is the Long Term Orientation which is the extent to which a society exhibits a future-orientated perspective rather than a near term point of view.  Low scoring countries like the USA and West European countries are usually those under the influence of monotheistic religious systems, such as the Christian, Islamic or Jewish systems. People in these countries believe there is an absolute and indivisible truth. In high scoring countries such as Hong Kong, Taiwan, China, for example those practicing Buddhism, Shintoism or Hinduism,  people believe truth depends on time, context and situation
  •  
    has explanatory power over many of the fundamental disagreements I have seen play out in sensorica discussions - may be worthwhile to understand constituents based on this model
Kurt Laitner

The FLOK Society Vision of a Post-Capitalist Economy | David Bollier - 1 views

  •  
    just in case anyone is unaware of this framwork, which is seminal
Tiberius Brastaviceanu

H2020-YOUNG-SOCIETY-2014 - 0 views

  •  
    "THE YOUNG GENERATION IN AN INNOVATIVE, INCLUSIVE AND SUSTAINABLE EUROPE"
Kurt Laitner

The Dead Are Wealthier Than the Living: Capital in the 21st Century - Pacific Standard:... - 0 views

  • you needed at least 20 to 30 times the income of the average person, and the most lucrative professions paid only half that
  • Consequently, “society” (i.e., the rich) consisted almost entirely of rentiers living off inherited wealth
  • In recent memory, the way to get rich has been to do it yourself
  • ...11 more annotations...
  • But it’s income that mostly interests us, not wealth, because income is the currency of the modern economy. Gone are the days when the only way to acquire an upper-class income was to marry into a family fortune.
  • Being born into or marrying wealth never stopped being the easiest path to acquiring a fortune
  • A fanatical miser, Getty was ever-fearful that his fortune would dissipate.
  • The return on capital (r) almost always exceeds economic growth (g).
  • “a very large share, perhaps a majority, of corporate profit hinges on rules and regulations that could in principle be altered.”
  • The clearest such pattern is that r really was, at most points in history, greater than g, if only because g was seldom much to write home about, especially back when economies were primarily agricultural. (Inflation, I learned from reading this book, didn’t really exist before the 20th century.)
  • The big driver of income inequality, Piketty says, isn’t labor income. It’s capital.
  • Only when you add in capital income does the gap widen to 15 percentage points
  • really, the 0.01 percent, a cohort Piketty dubs “supermanagers”—to receive much of its remuneration in the form of stock options and other capital holdings.
  • Typically, r is four to five times g, but the ratio gets larger as capital accumulates across generations
  • Baker also suggests that the tendency for large amounts of capital to realize a higher return isn’t solely attributable to the superior financial instruments they have access to; it may also have something to do with rampant insider trading, which could be policed more closely.
  •  
    just in case we get too caught up in determining incomes, disrupting private capital and inheritance needs to be on the agenda.  Private goods tend to eventually become public goods (paid a royalty for paper lately?) but the rate at which private goods become public needs to increase (patent reform, inheritance tax etc)
Steve Bosserman

Scale of Social Structures - Tibi's Philosophy - 3 views

  •  
    "In April 2015 I was asked by Christine Koehler to write an article on value. She contacted me because she come across my work on open value networks, about a new organizational model that may be well-adapted to support large scale peer production of material goods. I accepted the challenge as an exercise to formalize the tacit knowledge that I have accumulated since 2008, when I became interested in the relation between the new digital technology and the shift of power structures in our modern society. I advise the reader not to consider this paper as a theoretical essay. This is only my effort to bring to my own consciousness the tacit knowledge that I am using in my efforts to help the development of the open value network model, and of the SENSORICA.co network/community, which is an instantiation of this model. As I get better at surfacing and formalizing these ideas, I also invite the reader to understand the heuristics behind my work. I let the reader place a judgment on the success of my work, which will make these heuristics and models that I am trying to expose here more or less interesting. Start with Scale of social structures and follow the links. "
sebastianklemm

DOEN Foundation - 1 views

  •  
    The DOEN Foundation supports pioneers who work hard to establish a greener, more socially-inclusive, and more creative society, in which: > the capacity of the planet is the starting point (green); > everybody can participate, where people work together and help each other with respect for individual needs and possibilities (socially inclusive); > art and culture are at the heart in the belief that society can not do without (creative). The DOEN Foundation supports initiatives that focus on one of these three themes. Within these themes, we work with programs which specify the type of initiatives we support.
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