Economies of Scope – P2P Foundation https://blog.p2pfoundation.net Researching, documenting and promoting peer to peer practices Wed, 28 Nov 2018 20:33:09 +0000 en-US hourly 1 https://wordpress.org/?v=5.5.15 62076519 Cosmolocalism in Nutshell https://blog.p2pfoundation.net/cosmolocalism-in-nutshell/2018/11/29 https://blog.p2pfoundation.net/cosmolocalism-in-nutshell/2018/11/29#respond Thu, 29 Nov 2018 10:00:00 +0000 https://blog.p2pfoundation.net/?p=73558 In the midst of a systemic crisis, it is imperative to create evidence-based awareness of new capitalist and post-capitalist futures. COSMOLOCALISM will advance our understanding of how to create a sustainable economy through the commons. Find out more on the Cosmolocalism Website. Extended summary COSMOLOCALISM will document, analyze, test, evaluate, and create awareness about an emerging mode... Continue reading

The post Cosmolocalism in Nutshell appeared first on P2P Foundation.

]]>
In the midst of a systemic crisis, it is imperative to create evidence-based awareness of new capitalist and post-capitalist futures. COSMOLOCALISM will advance our understanding of how to create a sustainable economy through the commons.

Find out more on the Cosmolocalism Website.

Extended summary

COSMOLOCALISM will document, analyze, test, evaluate, and create awareness about an emerging mode of production, based on the confluence of the digital commons (e.g., open knowledge and design) with local manufacturing and automation technologies (from 3D printing and CNC machines to low-tech tools and crafts). This convergence could catalyze the transition to new inclusive and circular production models, such as the “design global, manufacture local” (DGML) model.

DGML describes the processes through which design is developed as a global digital commons, whereas the manufacturing takes place locally, through shared infrastructures and with local biophysical conditions in check. DGML seems to form economies of scope that promote sustainability and open innovation while celebrating new ways of cooperation. However, such claims rest on thin conceptual and empirical foundations.

COSMOLOCALISM is a pilot-driven investigation of the DGML phenomenon that seeks to understand relevant organizational models, their evolution, and their broader political economy/ecology and policy implications. Through the lens of diverse case studies and participatory action research, the conditions under which the DGML model thrives will be explored.

COSMOLOCALISM has three concurrent streams: democratization; innovation; and sustainability. First, DGML governance practices will be studied, patterns will be recognized, and their form, function, cultural values, and structure will be determined. Second, the relevant open innovation ecosystems and their potential to reorient design and manufacturing practices will be examined. Third, selected DGML products will be evaluated from an environmental sustainability perspective, involving both qualitative and quantitative methods. The interdisciplinary nature of COSMOLOCALISM will explore new horizons to substantively improve our understanding of how to create sustainable economies through the commons.

The post Cosmolocalism in Nutshell appeared first on P2P Foundation.

]]>
https://blog.p2pfoundation.net/cosmolocalism-in-nutshell/2018/11/29/feed 0 73558
Keynes, “the Good Life” and abundance https://blog.p2pfoundation.net/keynes-the-good-life-and-abundance/2016/10/15 https://blog.p2pfoundation.net/keynes-the-good-life-and-abundance/2016/10/15#respond Sat, 15 Oct 2016 10:00:00 +0000 https://blog.p2pfoundation.net/?p=60744 A translation of Juan Urrutía’s notes for his keynote at Somero 2016 Juan Urrutía: Good morning to everyone, and welcome to this poor mountainside in beautiful Madrid [province]. I am sorry I wasn’t able to arrive yesterday and even more sorry I won’t be able to stay and sleep here tonight. I’m sorry because “conversation” has taken... Continue reading

The post Keynes, “the Good Life” and abundance appeared first on P2P Foundation.

]]>
A translation of Juan Urrutía’s notes for his keynote at Somero 2016

Juan Urrutía: Good morning to everyone, and welcome to this poor mountainside in beautiful Madrid [province]. I am sorry I wasn’t able to arrive yesterday and even more sorry I won’t be able to stay and sleep here tonight. I’m sorry because “conversation” has taken on a special meaning for Las Indias, since it is both a fundamental instrument in search of Communitarianism (the Communard Manifesto largely serves this “conversation”) and a component element of the “good life.”

And, obviously, I thank the Indianos, who I feel part of, for the invitation to open the conversation of Somero 2016, where the Indianos have come together to think about this moment the world is living through, to listen to themselves and each other about how enough can be produced to create Abundance, lead to a “Good Life,” and collaborate to sustain a “Good Society.” This change between the approach to Somero 2015 and Somero 2016 is a good starting point for my talk. From ideas to revolutionize the world, we move to discuss a new world that… has not arrived yet.

Introduction

7-apertura-somero-2016Let me announce from the beginning that I may not be able to rise to the occasion of this new stage, because I don’t think that any idea emerges from my words that need introduction to a community in the clear and obvious Direct Economy (making beer for example). At best, there will be words related to teaching and learning, and to knowledge and wisdom, that try to clarify these distinctions, suggesting that perhaps two paths can be opened, i) the one that goes from teaching to learning, and ii) from knowledge to wisdom.

In any case, I’m going to try to stick to the title suggested by Las Indias, “Keynes, the Good Life, and Abundance,” and accepted by me with pleasure, and which provides three crucial conditions, since I will have to talk about three things that have been “put upon” me:

  1. Politics, trying to identify the kind of social and power relationships in which The Good Life arises, or can arise.
  2. Economy, freely explaining the future of the economic system which, if we do it well, could lead us to abundance.
  3. Keynes, someone I hold to be exemplary, as a macroeconomist and public servant in various positions—university, finance, etc. And he was a practitioner of a good life in Bloomsbury.

Politics: for a petty-bourgeois liberalism

What I’m going to to tell you under this rubric was written 25 years ago and reproduced in June of 2014. In any case, I will follow a summary that David and Natalia worked on in their day.

Fifteen years ago, I tried react against the revolutionary American neo-conservativism during the mandate of Bush, Jr., that justified the beginning of the Iraq war. To do so, I had to declare myself anti-revolutionary and petty bourgeois, a gesture that I was enthusiastic about, since neo-conservativism was “the revolution” of the moment (we remember the Azores). The bourgeoisie was identified with the unity of Big Businesses, Finance, and State, gelled by news media subjected to the power of these three institutions. I will now review the characteristics of this “counter-revolution” that proposed to face the “neoconservative revolution”:

  1. The primacy of freedom
    1. The need for individual ethics (individual responsibility)
    2. Truth before happiness (not all means are legitimate)
    3. Rebellion and experimentation (as we’ll see in Keynes)
    4. Diversity (demanded by individual freedom and the corresponding responsibility)
    5. Freedom before utility (which demands private property)
    6. The universalization of human rights, or if you prefer, “generalization,” since universalization is a issue debated among the Indianos.
  2. The primacy of individualism, which, although it may seem contradictory, puts identity ahead of individualism (we will see later that this community identity in competition maintains diversity)
  3. The primacy of spontaneous order
    1. Participatory “project-ism” (which would allow interventionism to Keynes or Stiglitz)
    2. Small, strong State (of all the forms of power, confederation is my favorite)
    3. A “functionariate” of the elite (Keynes is an example)

I have always thought that all these characteristics were to be found in Keynes.

Economy: Abundance

Once I declared that I belonged to the petty bourgeoisie (at least as a professor), it then fell to me try to convince people that, a) the best economic form is the market, b) as long as this market does not create rents, and c) it creates abundance. Once this task is fulfilled, I will be able to move on to discuss what The Good Life consists of.

Identarian community

We can only describe here in outline form how communities are formed through an evolutionary game consisting of forming pairs randomly and constantly making them play a game such that a network is formed, a process in which social habits or memes appear until a balance is arrived at in the evolutionary game, called the Evolutionary Stable Strategy, or the “mutant-proof balance,” since no one is interested in going outside the guidelines of conduct in the balance.

Fraternity and possibility of abundance

In the balance of the evolutionary game, fraternity happens, a term that includes friendship and the pleasure of being together. This fraternity has two crucial characteristics, which are mutual trust and the credibility of commitments. If the network we’re in is really distributed, we come upon the possibility of abundance because a) transaction costs decrease through mutual trust, b) the network effect, or Matthew Effect, happens, according to which, “to him who has, more will be given,” due precisely to the fact that joining a very dense network decreases costs and c) economies of scope appear, according to which, more is earned by expanding the range of products manufactured by a company than by increasing the production of a single product. At the limit, we find the balance of perfect competition in a digital world, like today’s world taken to its limit.

Problems

Before reaching the limit, however, not everything is rosy.

  1. Revolution is dependent on the threshold of rebellion of the epistemic condition (or, who knows, common knowledge at its limit) and the density of the network. Example: in conservative communities, revolution is easier the less dense the network is, as in England.
  2. The Communal. This a good that is non-rival in consumption but suffers from exhaustability. The market treats these semi-public goods and existing solutions as bad, unless they are perfect and local. As the increase in digital goods increases the volume of these goods, the kingdom of abundance is not so easy to reach, generally, and meanwhile, bad solutions are created, such as a) laws on intellectual property, b) funding of knowledge through public money, or c) disincentives on the rankings of scientists.
  3. Dissipation of rents. As no one has any monopoly power in perfect competition, because the threat of simply going away is credible, there are no rents in it. But even in that case, the State could create them in favor of the powerful. As an example, let’s think about the financial beach bars of so-called “fintech,” which could reduce part of the power of banks and wait to see how that possibility evolves. Also, we should remember the distinction between pleasure, produced by struggle, and comfort, created by enjoyment (Hirschman).

“The good life” and “the good society”

The problem with translation

I want identify the way of life to which I think a commoner aspires. I’m going to call it “The Good Life” [English words used in the original Spanish text], but immediately I find myself “Lost in Translation.” A “Good Society” is a set of individuals that lead a “Good Life.” Then, if I want know how translate a “Good Society” I have to translate first “Good Life.”

It has been tried many times. Sometimes as the good life (in the sense of holding to a good life), sometimes as a good life (the opposite of a bad life, like that of a criminal, let’s say).

I dare to try define the meaning of “The Good Life”:

The Good Life denotes a way of life that includes a certain care with things, living or dead, that surround us, so that they will remain there; an absence of abuse of things or self; a certain modesty (or only a small degree of arrogance) in the attitude towards life, except when facing the powerful.

Therefore, a good translation could be a dignified life, or full, or modest, or collected. I’ll stick with a dignified (or full) life, which I think can only be exercised in petty bourgeois liberalism.

Accordingly, I suggest that we translate “The Good Society” as a worthy society which, naturally, would include equality of opportunities.

The Bloomsbury Group

This group, so strange to us, can be the real corollary of what I now call petty bourgeois liberalism. The mix was very heterogeneous, because it included people like Virginia Woolf, J.M. Keynes, B. Russell, and others with highly variable positions and practices; but everyone had some common characteristics, such as a) pride in their education, b) a break with Victorian classicalism and c) pride in being light to the world.

Its situation in the world was, in some sense, like ours today, given technological changes and the need to reinvent themselves. Keynes belonged to this group, which met at home of the Bell sisters in Russell Square. Only this way can it be understood that he wrote The Economic Possibilities for Our Grandchildren, whose subtitle in Castillian Spanish is “What is Needed for a Good Life?” while in the original, “…for a Good Society” is used, which brings us back again to the problem of translation. In any case, it should be clear by now that a “Good Society” includes self-realization of the individual members that it is made up of.

Quantification of the Good Society

The two Skidelskis (Robert and Edward, father and son) make an effort to quantify the income necessary for a family to lead a “Good Life.” But they themselves say that this quantification is not very important: “Progress should be measured not by the traditional yardsticks of growth or per-capita income;” but by the seven elements of a “good life” or full life. These yardsticks are 1) health, 2) security, 3) respect, 4) personality (individual identity, perhaps “being someone”?), 5) harmony with nature, 6) friendship (fraternity) and 7) leisure.

In any case, I hurry to say that these are not the pillars of wisdom but only some ideas we will never be able to stop talking about in a community. Let us look at two qualified opinions on education, related, without a doubt, to several of the yardsticks. Phelps:

We will all have to turn from the classical fixation on wealth accumulation and efficiency to a modern Economics that places imagination and creativity at the center of economic life.

And Sen recalled that debates were the teaching methodology in the old University of Nalanda (the oldest in the world).

I dare to conclude this section saying that education must focus on values associated with the Humanities, in which efficiency and wealth do not stand out as much as happiness and the meaning of work well done, which are only acquired in an institution in which the primary consideration is learning through debate, without so much emphasis on study, which seemed to be so necessary in the last century.

Final Comments

And to finish, I’m going to limit myself to highlighting that Keynes and his teachings illustrate everything that he tried explain on the topics of liberalism, abundance, and the worthy life. I am going to do so by providing some quotes, both from John Maynard himself, and from Joaquín Estefanía in his lengthy introduction to the essays on persuasion by the master.

Estefanía

The academic economy did not stimulate his inventiveness, but the great problems of the applied economy and their discussion were able to drive his passion; then he set in motion his great intellectual faculties and his qualities of persuasion.
p.37.

I will not try to improve on Estefanía, but I want make it clear that we should clarify if there really is a distinction between a) applied economy vs. academic economy, b) inventive vs. intellectual faculties, and c) political persuasion vs. academic persuasion.

His scholars remind us over and over that for our author, the “good life” is the sole rational objective of economic effort; the rest—the deficit, debt, inflation and deflation—mere intermediate and instrumental stages.
p.51

This quote raises two concerns for me: a) to limit oneself to quoting only macroeconomic problems as topics of economic studies is not adequate, although the same affirmation would be appropriate even if he had added microeconomic issues. b) To what extent is the “good life” Estefanía refers to is specific to Bloomsbury?

Keynes

In the essay “Am I a liberal?”:

In a period of extreme abundance there is the maximum of individual liberty, the minimum of coercive control through government, and individual bargaining takes the place of rationing.

It’s not well-written, but it fits with my political talk, and what it means is that in the kingdom of abundance, we can live without spending all day thinking, and that lets us live the “good life.”

We have to invent new wisdom for a new age. And in the meantime we must, if we are to do any good, appear unorthodox, troublesome, dangerous, disobedient to them that begat us.

Here, it is fitting to remember the distinctions we’ve made between an education that, at another level, is Kontraren Kontra [contrarian] (although we are).

In “The Economic Possibilities for Our Grandchildren“:

The strenuous purposeful money-makers may carry all of us along with them into the lap of economic abundance. But it will be those peoples, who can keep alive, and cultivate into a fuller perfection, the art of life itself and do not sell themselves for the means of life, who will be able to enjoy the abundance when it comes.

Here, I would like to recall a detail personal. The economic wisdom of our parents, at least of my father: never spend your equity, and spend the interest on it very wisely.

The course of affairs will simply be that there will be ever larger and larger classes and groups of people from whom problems of economic necessity have been practically removed.

Abundance will arrive, but little by little, and by socioeconomic levels. And only as long as the rich do not abuse it by creating rents.

Conclusion

If I had to single out something from what has been said so far, I’d choose an implication that is not at all obvious, and, really, I haven’t said anything about. Namely, “performativity.” And I’ve built myself a quote, as if this idea of mine was memorable: When people are prepared to live in abundance, true abundance (not foolish waste), then it will happen.

If I am right, our task as communards is to build a new way of life.

Translated by Steve Herrick from the original (in Spanish)

The post Keynes, “the Good Life” and abundance appeared first on P2P Foundation.

]]>
https://blog.p2pfoundation.net/keynes-the-good-life-and-abundance/2016/10/15/feed 0 60744
The pattern of the coming changes https://blog.p2pfoundation.net/the-pattern-of-the-coming-changes/2015/11/08 https://blog.p2pfoundation.net/the-pattern-of-the-coming-changes/2015/11/08#respond Sun, 08 Nov 2015 17:18:39 +0000 http://blog.p2pfoundation.net/?p=52536 What we take away from Somero 2015 is a model and a map of social, economic, and technological change that forces us to rethink and refine the framework of work. And internally, for the Indianos, it is the beginning of a new time with a new way of understanding what las Indias is. Last night... Continue reading

The post The pattern of the coming changes appeared first on P2P Foundation.

]]>
grupos-de-trabajo-somero-2015

What we take away from Somero 2015 is a model and a map of social, economic, and technological change that forces us to rethink and refine the framework of work. And internally, for the Indianos, it is the beginning of a new time with a new way of understanding what las Indias is.


Last night we said goodbye to the last participants from Somero 2015. Somero is meant to be our end-of-summer party and beginning of a new year, but also a succinct “Somero” catalog of the socio-economic change created by technological development. In both categories, it was a great success: we learned so many things and we met many new friends that it has forced us to stop and re-order the main reference points from which we understand reality.

The pattern of the emerging change

grupos de trabajo asarta somero 2015Throughout the presentations, interviews, and talks, we gradually discovered a common pattern in the changes in the production of software, objects and appliances, in energy, and in the coming finance system, but also, to the surprise of more than one person, in areas as apparently distant from each other as local development and the new missions and operational capacities of the FFAA. This is a radical change that also became transparent in the global view of the economy and geo-strategy.

It’s a relatively invisible but unstoppable change that uses the keys of what we have called the Direct Economy.

The heart of the change: less scale, more scope, lower cost

This common pattern is an across-the-board reduction in the scale of productive units and the growing centrality of economies of scope. What are economies of scope? The disproportionate improvement of productivity obtained from two things:

  • The capacity obtained through the intensive use of multi-purpose machines and systems–3D printers in prototyping, “recyclable” production chains in manufacturing, systems integrated into logistics–of multiplying the diversity of low-cost supply, marking a tendency towards low-cost customization.
  • The capacity for reaching, at a low cost, across greater distances by using networks and identifying concrete identarian networks, to make them customized offers.

The result of the balance between large scales that are suffering more and more inefficiencies and a new productive “SME” community that is producing a greater diversity of things, in smaller runs, and selling them globally by differentiating more kinds of customers, is clear: the whole sector of the new “small and globalproduces at a lower cost and is simply more efficient.

So the slogan of the change, in any setting, could well be less scale, more scope.

Distributed isn’t decentralized

Manuel en el GNU social Camp

The main contradiction of this world that we started to map out in Somero 2015 is the tension between the decentralized and the distributed.

entrevista mikael hannes manuel somero 2015The Internet of the giants of scale, the world of finance, and the industrial sector that is still dominant today, are the results of the connection of a series of centralized and centralizing systems. Twitter, Facebook, and Google are such centralized networks that they show the user a single entry page. Volskwagen, Endesa or any other industrial giant are such centralized transnational systems that they can plan not only their margins but updates to their equipment from their providers with their corresponding financial costs. These providers, who live in a true monopsony (a market with a single buyer) have no margin for any other technological innovation than that dictated and funded by the buyer.

But starting at certain scale, decentralized systems not only accumulate more inefficiencies, but turn them into costs that are higher than those of their distributed alternatives. These alternatives are not just more and more competitive in industry and even in the credit market. They are, by definition, more robust and resilient, and with a minimal regulation, as we saw in finance, they have systemic effects that underpin the main path of socio-economic and technological progress in our era: the dissipation of rents.

Additionally, when we joined the logic of distribution to that of free software, the free [of charge] nature of the underlying infrastructure appears easily, and the result is the appearance of resilient and accessible markets, and above all of a social fabric that gives a leading role to the community in the city and in conversation.

The key word is community

juan y jurg somero 2015

And as Juan had already told us on the second day and again remarked in the send-off, the new world doesn’t relate in impersonal ways, talking about “here’s what you should do,” but about many different versions of “here’s what we’re doing,” from many real communities, each one with their own values and ways of being themselves.

Somero 2015 was, above all, a community event. From the first days, we saw the birth of a powerful, imaginative and cohesive development community: that of GNU social. Working in parallel with the seminar of the “Sharing Cities Network,” in less than three days, it made a true show of force by developing the basics of the free and distributed toolbox of the “sharing city.”

cocktail somero 2015 isabel corral enriqueBut that wasn’t the only community that took shape in those days. The participation of many of our friends of la Matriz, who had jointly rented and organized accommodations and transportation to participate, gave shape to turning An?ovoligo into “las Indias Club.” Their participation in conversations and in software development, their contributions to the development of the event, and their interaction with the speakers were fundamental to everything turning out as marvellously as it did. In the end, as we wanted, we are something closer to a country than a landscape. Now the “Indianos” are not just the members of the cooperatives, but the network of friends of las Indias Club, our “happy few,” our “we,” united by values and ideas, but above all by experiences, feelings, and affections.

Towards Somero 2016

nat somero 2015 el comercioThis morning, while the apartment rented by la Matriz was emptying out and its Indianos were leaving for train stations and airports, the other one, that of the cooperators, was ringing with accounts, bills, and telephone calls. Among them were the first preparatory calls for Somero 2016.

We feel that we entered, reinforced and excited, into a new year, our fourteenth year, and into a new stage. This is a stage in which las Indias is no longer only a community with cooperatives but also a Club to think and do together. During the upcoming weeks, we will build its new webpage and we will publicize the first contents published and produced in and as a result of Somero 2015.

Somero 2015 was exciting–it gave us all momentum, filled us with ideas, and let us glimpse a powerful general framework from which many valuable things can be made. None of it would have been possible without all those who came and gave the best of themselves. Endless thanks to everyone!

Translated by Steve Herrick from the original (in Spanish)

The post The pattern of the coming changes appeared first on P2P Foundation.

]]>
https://blog.p2pfoundation.net/the-pattern-of-the-coming-changes/2015/11/08/feed 0 52536