Dmytri Kleiner

So, to try to explain what “venture communism” is, which is my own project, predating the term “peer production”, but very relevant to it. I think we’re talking about the same thing, even if I was using different terms. As a technologist, I was also inspired by the functioning of peer networks and the organization of free software projects. These were also the inspiration for venture communism. 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. The Internet gives us a very efficient platform on which we can share and distribute and collectively create immaterial wealth, and become independent producers based on this collective commons.

Henry George

Venture communism seeks to tackle the issue of how we can do the same thing with material wealth. I drew on lots of sources in the creation of this model, not exclusively anarchist-communist sources. One was the Georgist idea of using rent, economic rent, as a fundamental mutualizing source of wealth. Mutualizing unearned income is essentially what that means in layman’s terms. 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.

Even within the cooperative movement, which I’ve always admired and held up as an example, it’s clear that the distribution of productive assets is also unequal. The same with other kinds of production; for example, if you look at the social power of IT workers versus agricultural workers, it becomes very clear that the social power of a collective of IT workers is much stronger than the social power of a collective agricultural workers. There is inequality in human and capital available for these cooperatives. This protocol would seek to normalize that, but in a way that doesn’t require administration. The typical statist communist reaction to the cooperative movement is saying that cooperatives can exclude and exploit one another, and that solution is either creating giant cooperatives like Mondragon, or socialist states.

Silvio Gessel

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.

The idea is that the cooperatives are still very much independent just as cooperatives are now. The producers are independent, but instead of owning their productive assets themselves, each member of the cooperative owns these together with each member of every other cooperative in the Federation, and the cooperatives rent the property from the commune collectively. 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.

So, the unearned income, the portion of income derived from ownership of productive assets is evenly distributed among all the cooperatives and all the stakeholders among those cooperatives, and that’s the basic protocol of venture communism.

Whatever productive assets you consume, you pay rent for, and that rent is divided equally among all members of the commune. Not the individual cooperatives, but the commune itself. 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. So if you are a regular person, then you are kind of moving evenly, right? 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. And conversely, if you’re a super motivated producer, and you’re greatly expanding your productive capacity, then what you pay for productive assets will be much higher than what you get in dividend, presumably, because you’re also earning income from the application of that property to production. So, venture communism doesn’t seek to control the product of the cooperatives. The product of the cooperatives is fully theirs to dispose of as they like. 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.

Photo by T a k

The post Dmytri Kleiner on the workings of a Venture Commune appeared first on P2P Foundation.

Michel Bauwens

Michel Bauwens: I’d like to start with outlining the issue, the problem around the emergence of peer production within the current neoliberal capitalist form of society and economy that we have. 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?

The situation is that we have created communities consisting of people who are sometimes paid, sometimes volunteers, and by using open licenses, we are actually creating commonses – think about Linux, Wikipedia, Arduino, those kinds of things. But what is the problem? The problem is I can only make a living by still working for capital. So, there is an accumulation of the commons on the one side, we are effectively producing a commons, but we don’t have what Marx used to call social reproduction. We cannot create our own livelihood within that sphere. The solution that I propose is related to the work of Dmytri Kleiner – Dmytri proposed some years ago to create a peer production license. I’ll give you my interpretation of it; you can only use our commons if you reciprocate to some degree. So, 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. Imagine that you have a community of producers, and around that you have an entrepreneurial coalition of cooperative, ethical, social, solidarity enterprise.

The idea is that you would have an immaterial commons of codes and knowledge, but then the material work, the work of working for clients and making a livelihood, would be done through co-ops. The result would be a type of open cooperative-ism, a kind of synthesis or convergence between peer production and cooperative modes of production. That’s the basic idea. I think that a number of things are happening around that, like solidarity co-ops, and other new forms of cooperative-ism.

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 been very influenced by this neoliberal atmosphere that has been dominant in their generation. 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. They forbid you to continue to work in the same sector after your company has failed, and you have a gag order, so you don’t even have free speech to talk about your negative experience. This is a very common experience. 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.

There is a real lack of knowledge within the young generation that there are other forms of enterprise possible. I think that the other way is also true. 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. They don’t have a commons of design or code, they privatize and patent, just like private competitive enterprise, their knowledge. They’re also not aware that there’s a new way of becoming more competitive through increased cooperation of open knowledge commons. This is the human side of it, and we need to work on the knowledge and mutual experience of these two sectors. Both are growing at the same time; after the crisis of 2008, we’ve had an explosion of the sharing economy and the peer production economy on the one side, but also a revitalization of the cooperative sector.

The post Michel Bauwens on the pitfalls of start-up culture appeared first on P2P Foundation.

John Restakis

John Restakis: Historically, cooperatives have been primarily focused around providing support and service to the members. 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. That has been the traditional form of cooperatives for a long time now. Primarily, the co-op is in the service of its immediate members. That has changed over the last 15 years or so, particularly in the field of the provision of social care.

Social co-ops emerged in the late 70s in Italy as a response to a market failure within public services in Italy. Groups of families or users of social services, primarily originally from within a community of people with disabilities, decided to organize cooperatives as a better way of designing and providing services to themselves. This is a very different model from the state-delivered services to these people. 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. And so, they were communitarian, community service organizations that had a membership base of primary users of that service, whether it was healthcare, or help for people with drug addictions, or whatever.

These social co-ops have now exploded in Italy. I think they have taken over, in a sense, the provision of social care services in many communities under contracts to local municipalities. 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. These are democratically run organizations, which is a very different model, much more participatory, and a much more engaged model of designing social care than the traditional state delivered services. The idea of co-ops as being primarily of interest in serving their own immediate membership has been expanded to include a mandate for the provision of service to the community as a whole.

This is an expansion of this notion of cooperatives into a more commons-based kind of mission, which overlaps with the philosophy and values of commons movement. 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. One of the real strengths of the cooperative form is that it not only provides a democratic structure for the enterprise – be it a commercial or social enterprise – but it also has a legal form that allows it to enter into contract and negotiate legal agreements with the state for the provision of public services. This model of co-op for social care has been growing in Europe. In Québec they’re called Solidarity co-ops, and they are generating an increasing portion of market share for the provision of services like home care and healthcare, and it’s also growing in Europe.

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? Social co-ops have been part of this tide of reaction and reinvention, in terms of civic solutions to what were previously state-designed and delivered public goods and services. So I’ll leave it at that for the moment, but it’s just an indicator of the very interesting ways in which the co-op form is being reimagined and reinvented to respond to this crisis of public services and the changing role of the state.

Read the full trialogue here

Photo by OiMax

The post John Restakis on the emergence of social care coops appeared first on P2P Foundation.