Mar 202012
 
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There’s a complex piece over at Al Jazeera at the moment on the subject of the worldwide Occupy movement and the new economics it may help to configure.  Till now, Occupy has been generally perceived and criticised as an umbrella group of people who obviously know what they disagree with but find difficulty in saying what they’re in favour of.

Also, till now, Occupy has been seen as a mainly political statement of utter rejection of the more immoral sides of latterday economic practice, without offering concrete solutions or alternatives.  But the article Al Jazeera published on the 9th of this month, and which can be found here, points us in a different direction completely.  The thesis thus described appears to build on solid and pre-existing process as exemplified by the grand American IT corporations which have already cared to get involved with the ecosystems of open source software (the bold is mine):

Clay Shirky, author of Here Comes Everybody: The Power of Organizing Without Organisationsstresses that companies that work with Linux, such as IBM, “have given up the right to manage the projects they are paying for, and their competitors have immediate access to everything they do. It’s not IBM’s product”.

This, then, is the point I want to make: that even with shareholder companies allied with peer production, the community’s value creation is still at the core of the process, and that the entrepreneurial coalition, to a substantial degree, already follows this new logic – in which the community is primary and business secondary.

If gigantic corporations such as IBM can work out a way of keeping their shareholders onside whilst they work to create libre software, surely it cannot be beyond us to contemplate a society of the common good where that common good is sustained by empowered communities which can choose according to their own particular set of ethical values.  From Al Jazeera once more:

[...] Occupy Wall Street set up working groups to find solutions to their physical needs. The economy was considered as a provisioning system (as explained in Marvin Brown’s wonderful book, Civilising the Economy), and it was the “citizens”, organised in these working groups, who decided which provisioning system was appropriate given their ethical values.

For example, organic farmers from Vermont provided free food to the campers, but this had a negative side effect: the local street vendors, generally poor immigrants, did not fare too well with everyone getting free food. The occupiers cared about the vendors and so they set up an Occupy Wall Street Vendor Project, which raised funds to buy food from the vendors.

Bingo: in one swoop, OWS created a well-functioning ethical economy that included a market dynamic, but that also functioned in harmony with the value system of the occupiers. What is crucial here is that it was the citizens who decided on the most appropriate provisioning system – and not the property and money owners in an economy divorced from ethical values.

As I pointed out in my own piece linked to above, the tools of large corporate behaviours can be useful or destructive: it all depends to what organisational purposes they are put and what values are employed to define their implementation.  That so many large corporations psychopathically get it wrong doesn’t mean everyone who uses such tools of mass organisation will be tainted by the same behaviours.

Meanwhile, this observation, from the new blog Shifting Grounds,  puts the neoliberals of this world firmly in their place:

An ideology that celebrates selfishness and denigrates the common good has been the moral and financial ruin of Britain.

As well as a great many other places around the world.

It may, then, now be the turn of open source strategies and their ilk to allow a protest movement with many relatively passive adherents in a wider society to build on a considerable corporate expertise proven over the a quarter of a century.  The challenge, of course, is to find a way of interfacing the powerful with the needy – without losing our moral compasses.

New Labour failed to do the latter.

In the shadow of the moral outpourings of a discarded generation, quite another Labour must not.

Another learning Labour, that is.


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Sep 132011
 
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According to Dan Hodges’ Twitter feed, Ed Miliband said the following in his speech to the TUC this morning:

Most significant element of Ed’s speech isn’t about unions, it’s this: “We are not going to be able to spend our way to a new economy”

I do wonder if part of the problems we are suffering from – as a result of rich people and financial organisations having done what they chose to do badly over much of the last decade – doesn’t also have something to do with the fact that much productive labour these days, things which add definite value to the economy, is actually outside the scope of government’s ability to tax and therefore benefit from it.

An example close to home: I haven’t used Microsoft’s Word – except in a paid environment – for years now; instead, I’ve used successive versions of the free software equivalent OpenOffice.org.  Much of the user interface and web gateway to accessing this software is produced by volunteers who carry out their work free of charge, outside their normal working-hours and with the simple objective of providing this free alternative to both others and themselves.

It’s an ideological matter too: office software has been around for decades; Microsoft’s grand achievement in business has been to convince us all that a mature product – which should have become a cheap utility years ago – still has the right to demand the licence fees which it currently commands.  You can’t change Microsoft, of course – but you can work to create choice.  And OpenOffice.org, as well as the fury which has sometimes driven its supporters, is as ideological a proposal, alternative and choice as any political party has striven to be.

Perhaps, in a way, that goes some way to explaining why political parties aren’t as popular as they used to be.  It’s not that we shun overarching ideology: it’s that, these days, we choose to participate in cleanly focussed ones which don’t require so much compromise on our part.

So here we have an example of ideological behaviours (Wikipedia versus Encarta is another clear example), where people work to create substitutes to business models which have historically generated income for the state.  (Of course, there are a multitude of examples around at the moment which demonstrate that even properly formed businesses are doing their legal level best not to contribute any taxes at all any more – but that’s quite a separate matter for quite a separate post.) 

This, then, leads us to the question: who is able – anywhere in the world – to effectively and fairly tax (or monetise) voluntary work so carried out on such a vast and extensive scale?

If the corporate socialism which bailed out the banks wasn’t bad enough in itself – and even, perhaps, hadn’t been needed in the first place – surely sooner or later we’d have had to face up to this other unhappy disjunction between the needs of the public purse and the nature of the new economy.

Which begs a completely different question: perhaps the banks actually failed not because of greed and individual irresponsibility but, rather, because their business models, ways of working, procedures and processes and general structures are entirely inappropriate for the times we are beginning to live.

Times which encourage us to believe that more and more people will directly exchange work for services and products, in such a way that the state, as well as traditional business, can only – aghast – look on and fear.  For if big organisations such as banks are having problems pitching correctly their size, responsiveness and general ability to react to changing conditions, why not governments too?

It’s a thought, anyhow.


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Nov 272010
 
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This post is about cooperatives – even though it may not immediately appear to be the case.  Bear with me, though, and all will shortly be revealed.

Président Camembert comes in a beautiful wooden box.  As you can plainly see, its design harks back (or perhaps we should now say forwards) to a different world from the world we live in: the latter being a world which has accustomed us to the cheap and cheerful output of whopping great factories.

We see on the front of the box, nestling down at the bottom, a friendly little village – the sort we would all love to end up living in.  Not a whopping great factory in sight, mind.

Nor is there anything cheap and cheerful about Président cheeses – except when our local supermarket puts them on offer.  Then is when I eat them quite often – though, like Guinness and Ireland perhaps, they always seem better in France than they do over here.

So they’re not expensive and they’re not at all bad – yet along the way, I would still argue, something has been lost.  Perhaps not in the taste, perhaps not in the presentation.  Maybe not in the end result – maybe it’s got more to do with our perception of process.  For – I’m sure you’d agree – something so very true and life-enriching in all of these corporate products has gone visibly missing, and the proof of this something is in the marketing strategies that so many companies are beginning to use.  The video that follows is an example of such a strategy.  It uses a hand-held camera and soft lighting to such an extent that not having seen it on TV, I actually wonder if it’s an advert made for the company in question or – instead – a gentle take-off by some admiring consumer.

The question, then, that I really ask myself is as follows: if big companies, in their droves, find it necessary to refer back to a different age – an age of small and local and real and familiar – then why cannot they act on that need and reconstruct their business structures accordingly, so that they may align themselves with what people really seem to want, which they themselves have determined people yearn after, rather than schizophrenically detach their outer selves from their inner truths?

You think I ask a foolish question perhaps.  A rhetorical question maybe.  An impossible question even.  Well, no.  Via Twitter, as so often happens these days, the following link came my way:

Google was started in a garage in 1998. It now has a market capitalisation of $173 billion. It is one of a number of companies of comparable size – Microsoft, IBM, Apple, Cisco – who are leading an information and communications revolution which is redrawing the economic landscape. This is the necessary starting point for a review of the future of co-operation.

As this introduction to a massive new cooperative project goes on to point out:

The informal information economy is open and global. It is driven by interest and enthusiasm rather than money. The bulk of its traffic is free. It is taking time to digest the implications of these changes, and for those involved to work out what rules are necessary to govern behaviour. Some have seen it as a new form of the commons, and looked at codes of behaviour that have been developed by those using common land or fishing grounds. But this informal economy is more than sharing a common resource, for with the web the resource is unlimited. It is merely a site for relationships, and where joint projects are involved, it requires the kind of qualities found in those pioneer communities where everyone worked together to raise the roof of a home.

It is nothing other than a co-operative economy that is now growing with the speed and diversity of a tropical forest. It is informal and astonishingly inventive. It shares many of the same values and practices of formal co-operatives, and opens up numerous possibilities for a meshing between them. William Morris’s News from Nowhere depicted a world based on mutualism that for more than a century was seen as utopian. But in the last decade it has emerged as a reality not on the banks of the Thames but in the world of the web.

It also underlines that:

Previous technological changes of this magnitude were about material production – textile mills, railways, steel and Ford’s mass production factories. The information and communications revolution is different. It has created a virtual economy that sits in cyberspace above the material economy of goods and services. It is connected by airwaves and spectrums rather than roads and railways. It sends messages by satellite and ethernets, and uses cloud computing. Like the sky its horizons seem to stretch to infinity.

But its impact is only too material. Traditional industries are finding their foundations dissolving – music, broadcasting, the press, publishing, postal services, travel agents, branches of retailing all face a receding economic tide. Others are expanding in their place. Design, data processing, scientific research, software and computer systems, management and technical consultancy, education, artists and a host of maintenance and support services – these top the list of most rapidly growing sectors.

The traditional pillars of the 20th century economy – the great centralised corporations and welfare administrations – are far from finished. But they are being hollowed out, bypassed, or if they are banks, have to be publicly propped up in order to survive. What at once felt solid is being remoulded. Which forms will become dominant is not yet clear. Their emergence is contested. There are alternative paths of development and how they are organised. I refer to this as a second industrial divide.

This is, I’m sure you’ll agree, awe-inspiring stuff.  A nexus of communication which, almost despite itself, has already created so many products and services that we exchange at the level of individuals, rather than buy or sell in singularly overpowering quantities, and that is ripe for decent and sincere business models to be applied to its functioning – thus making, from what many have judged to be entirely unsustainable relationships, firmer futures for all those of us who would like to eke a better living out of what is clearly a marvellously expansive and opportunity-filled virtual landscape.

For in the future of cooperation lies another opportunity we may grasp: to turn the outer selves of our existing structures – those real and familiar places our big companies insist we not only yearn for but are also superficially regaled with over and over again – into the inner realities of new structures.  If, via the web and its mutualist instincts, we could somehow square the circle of those friendly little villages that are currently outperformed by all those whopping great Camembert factories … without traumas, without victors or losers, with simply an all-encompassing change in political and socio-economic instincts … well, it would be quite another world, wouldn’t it?

Quite another world indeed.

And then a friendly little village nestling at the bottom of a wooden box would represent an honest reality of undeniable strength and vigour.

Now wouldn’t you prefer to work for a community of interests such as the one I have outlined above?


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Oct 112010
 
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Here’s an interesting paragraph:

If the rich world really wants to go for growth, it must get away from its narrow focus on public debt and embark on a broader economic overhaul. Instead of promising to halve their budget deficits by 2013, for instance, big rich economies could decide to raise their retirement ages or free up their professional services. Fiscal consolidation would not be ignored: it would just not be the only priority.

From the Economist, via Phillip Blond on Twitter.

In the light of Alan Johnson’s recent remarks, how about we all start reading around the subject?

I don’t mean economics as such.  I mean those issues that economic attitudes impact on.

We could start by reading up on the rights of the child.  And then maybe on ageism.  And then perhaps move on to the wider subject of monopolistic capitalism.

Maybe making an economics newbie such as Alan Johnson Shadow Chancellor of the Exchequer signposts not a desire to keep the Blairite generation happy and compliant with Ed Miliband’s leadership so much as an intention to maintain the debate about economic structures on a much broader plain than simply the economic.

If so, I’m all for it – and will watch events over the next few months with a greater interest than I had originally anticipated.

For Alan Johnson’s appointment might be far more than a cheap and easy marketing decision. There could also be a profoundly socio-economic reasoning behind it.

It’s possible there will yet be important reasons to be cheerful.


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Oct 062010
 
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Interesting question, eh?  Let’s assume Osborne and Cameron do know what they’re doing (though as regular readers of this blog will appreciate, I’ve recently been in two fairly differentiated minds about this whole matter – and continue to be so even now).

Even they must, of course, have their own economic experts able to keep them abreast of developments in modern economies – and they would also appear to have a certain understanding of the dynamics of open source software, at least as far as tools such as crowdsourcing and online community interaction are concerned.  Couple that with any reasonably successful businessperson’s desire to make money out of the work of others and we have the perfect conditions for what we might call a perfect political storm: a clever and ingenious attempt that may not speak its name to take advantage of very 21st century impulses.

What are these impulses?  Let’s take open source software to start with.  Wikipedia has this to say on the subject.  As you can see, it’s not hard to see how such a development process can quite easily lead to the following circumstance:

Users should be treated as co-developers
The users are treated like co-developers and so they should have access to the source code of the software. Furthermore users are encouraged to submit additions to the software, code fixes for the software, bug reports, documentation etc. Having more co-developers increases the rate at which the software evolves. Linus’s law states that, “Given enough eyeballs all bugs are shallow.” This means that if many users view the source code they will eventually find all bugs and suggest how to fix them. Note that some users have advanced programming skills, and furthermore, each user’s machine provides an additional testing environment. This new testing environment offers that ability to find and fix a new bug.

But what’s the motivation behind all this collective eyeballing?  Well, it may be altruism I suppose – a quite virulent altruism on some occasions I’m led to believe.

But there are broad brushes of self-interest too.

After all, isn’t that what often drives even the most altruistic among us?  The warm feeling we get for helping others without apparent reward is surely in itself a reward of sorts.

Let’s have some examples of open source software.  Firefox is my browser of choice; I haven’t used Microsoft’s Internet Explorer for years.  I use the OpenOffice.org office suite for my wordprocessing and presentation projects – as do my children and wife; I only use Word or PowerPoint where I’m obliged to because my workplaces haven’t had the nous or the energy to investigate alternatives.  I even use Easy Peasy when I’m travelling – a full-blown flavour of Linux which I managed to work out how to install on my netbook and which cost me nothing except my time and a little thinking out of my Window’s box.

There are hundreds of thousands of people who participate in open source initiatives across the world, many of them in their free time, outside their work, as a hobby or voluntary activity.

So try taxing that.

Just think about it.

If hundreds of thousands of people are getting office software suites for nothing, in exchange for a little eyeballing or occasional HTML coding, where’s the income for big government going to come from in the future?  If people are already creating their own big societies, in virtual contexts and software environments, with real measurable outcomes and demonstrable savings, where’s the opportunity for the state to make a buck?

And if these kind of behaviours are extensible to other support networks, where the professional help and tips which before formed the bread and butter of magazine and newspaper empires are now the blessed preserve of all these unpaid experts of mutualistic cooperation, who’s going to be able to make money out of anyone any more?

Who, in fact, is going to need money any more?

You begin to take money out of the economic equation and you begin to turn all our assumptions upside down.

And that, I suggest, if we dare to assume that the people behind Osborne and Cameron know what they’re doing, is what I assume could be happening here.  We may, in fact, much against our natural instincts, eventually find ourselves all on the same side of the fence.

The big society that they want might be the elitist big society I mentioned earlier today.  But the big society they’re almost certainly going to get is going to be more of the open-source same I describe above.

No money, just free time.  No massive corporate publishing engines, just cheap PHP interactions.  No complex and expensive programs designed just to allow access to your proprietary product, but cheap-to-build and cheap-to-run Web 2.0 communities.

The end of wants, in fact.

And the beginning of a society of needs – needs that will only be able to survive where people require them to survive.

A Darwinian process of survival mandated by free-time obsessives.

The big society idea may actually be the most revolutionary crystallisation of tendencies already at work in our civilisation we’ve had for quite a while.

The big society may, in fact, already be all around us – in so many things we have and use, in so many things we do.

And it may already be in need of our protection, in need of our understanding, in need of our appreciation.

The big society may be so revolutionary that in fifty years time we not only won’t have any need for cash, we won’t have any need for its electronic equivalent.

And then, in a society where money no longer exists, how do you go about funding a state?
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Update to this post: some further reading which has just come my way via the House of Twits Twitter feed and which may cause some distress to those of a Labour-leaning disposition.

Worth checking out anyhow – if only to contrast my perception as expressed above of the reality of the big society idea with a rather more professionally packaged and PR-ed dressing-up of the concept, as outlined by Paul Twivy of The Big Society Network.
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09/10/2010: Chris over at Stumbling and Mumbling provides a fascinating exploration here of the issue my rhetoric attempts to address.  The conclusion is intriguing (the bold is mine):

My point here is not to do futurology. It is instead to make a more general point. The question of what to do about the deficit is not merely a macroeconomic one. It is about the nature and role of the state – and the possibilities here might be more radical than generally realized.


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