CommonsTransition:PolicyProposalsforanOpenKnowledgeCommonsSocietyP2PFoundation

TheFLOKteaminQuilotoa,EcuadorPhotographbyKevinFlanagan

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Thefollowingtextservesnopurpose,apartfrommakingthisbookseemlikeanactualbook.Inprintedbooks,oneusuallyseesalargeblockoftinyprintonthefirstorsecondpagefollowedbytermslike©2015.AllRightsReserved.Soandso.PrintedintheUnitedStatesofAmerica.Thepublishermayalsoincludeprosetodeterwould-bepirates.Nopartofthisbookmaybeusedorreproducedinanymannerwhatsoeverwithoutwrittenpermission.Thatistypicallyfollowedbyalineortwoaboutthepublisher,followedbyasequenceofnumbers.

Formoreinformation,pleasecontacttheFoundationforPeer-to-PeerAlternatives,Realengracht196,1013AVAmsterdam,Netherlands.

1213141516LP/SSRH10987654321

Butseriously,allyouneedtoknowisthatthisworkissharedunderaPeerProduction,P2PAttribution-ConditionalNonCommercial-ShareAlikeLicense,whichmeansthatyoucanfreelyshareandadaptitfornon-commercialusewithattributionunlessyou’reaworker-ownedcooperative,inwhichcaseyoumayuseitforcommercialpurposestoo.Weloveco-ops!.Moreinfoatourwiki.

CompiledandeditedbyStaccoTroncosoandAnnMarieUtratel.AdditionaleditingandeBookpublicationbyGuyJames.CoverImage:AnnMarieUtratelandGuyJames.

Stacco,AnnMarieandGuyappearcourtesyoftheCommonsMediaCollective.

FurtherinformationcanbefoundontheprojectwebsiteatCommonsTransition.org.

Thefirstpartofthisblurbiscourtesyofbookofbadarguments.com

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PrefacetotheFirstEditionEcuador’sFLOKSociety(Free-Libre,OpenKnowledge)projectwasoriginallycommissionedin2013throughatripartiteagreementinvolvingtheEcuadorianCoordinatingMinistryofKnowledgeandHumanTalent,Senescyt(TheSecretaryofInnovationandTechnology)andtheIAEN(TheNationalInstituteofAdvancedStudies).TheprojecthadbeeninitiatedbyCarlosPrieto,thenrectoroftheIAENandDanielVázquezandXavierBarandiaran.

TheprojectmarkedthefirsttimeanationstatecommissionedapracticalplantotransitiontoamatureSocialKnowledgeEconomybasedonPeertoPeerprinciples.Itwasinitiatedto“fundamentallyre-imagineEcuador”,basedontheprinciplesofopennetworks,peerproduction,andacommonsofknowledge.

ThecoregroupofresearcherswereMichelBauwens,Belgium/Thailand,(P2P/CommonsTransitionPolicies);DanielAraya,withassistanceofPaulBouchard(OpenEducation,OpenScience,HumanCapabilities),JennyTorres,Ecuador(OpenTechnicalInfrastructures);JohnRestakis,Canada/Italy(SocialInfrastructure,InstitutionalInnovation);GeorgeDafermos,Crete/Greece(OpenandDistributedEnergy,ManufacturingandAgriculture);JaniceFigueiredo,Brazil(CommonsforCollectiveLife,i.e.openfoodnetworks,opencurrencies,openurbanism).

ThiscoreFLOKSocietyteamwassupportedbyamuchlargernetworkofresearchers,activists,andhackersassociatedwithorganisationssuchastheP2PFoundation,Shareable,theCommonsStrategiesGroup,ShareLex,FreeKnowledgeInstituteandothers.Theyalsohadlegalassistancefromateamoflawyersexperiencedinthe‘open’,‘sharing’economy,andtechnicalsupportfromanetworkofhackers/openITexpertsassociatedwithcivicmovementssuchas15MinSpain.

Thepolicyproposalsinthisbookareintendedtohelpvisualiseandenablerealworldpracticestowardsasocietybasedonequity,economicdemocracy,andsharedmaterialandknowledgecommons.AlthoughoriginallywrittenfortheEcuadorianproject,theyhave

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beenadaptedandimprovedupontoapplytoregionsandcountriesfarbeyondthebordersofEcuador.Wesharethemtogiveanoverviewofthemanyprecedentsandpossibilitiespointingtoamorefairandjustsocialorder,andtoinspirethedevelopmentofaco-operativecommonwealthasthefoundationofanempoweredcivilsocietyatlocal,regional,national,andgloballevelsandtocreatetheinstitutionalmeansthatenablecivilsocietytoadapttotheneedsandconcreterealitiesofparticularpeoplesandplaces.

Findoutmoreinournewwebplatform:www.commonstransition.org

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IntroductiontotheCommonsTransitionPlanMichelBauwensandJohnRestakis

WhentheadministrationofRafaelCorreawassweptintopowerin2006,itappearedasthoughasnewpoliticalpagehadbeenturnedinEcuador.ACitizen’sRevolutionthathadmobilizedbroadswathesoftheEcuadorianpublic,inparticularthecountry’sindigenouspeoples,hadgalvanizedthecountryaroundaradicalsetofpolitical,social,economic,andenvironmentalvaluesthatsetthestageforanoverhaulofthenation’sinheritedpoliticalpast.

Inshortorder,theEcuadoriangovernmentre-wrotethenationalconstitution,rejectedtheodiousnationaldebtcontractedbypreviouscorruptregimes,joinedtheBolivarianAlliancefortheAmericas,anddevelopedacomprehensivevisionofnationaleconomicandsociallifebasedontheconceptofBuen Vivir(GoodLiving)thatlinkedeconomicandsociallifetothevaluesofpersonalwellbeingandprotectionoftheenvironment.

Thisvisionformedthebasisofthecountry’sNationalPlanandthemovetofundamentallyalterthenation’sproductivematrixfromoneofdependencyonforeigncapitalandoilextractiontotheconstructionofaneconomicmodelbasedonthevaluesofcommons,co-operation,andfreeandopenaccesstoknowledge.

Attheendof2013,theFLOKProject(Free/LibreOpenKnowledge)waslaunchedtoarticulatewhatsuchaneconomywouldlooklikeandwhatpolicyrecommendationswouldberequiredtorealizeit.UnderthejointsponsorshipofTheMinistryforNationalPlanning(SENPLADES),TheMinistryforInnovationandHumanResources(SENESYCT),andtheNationalInstituteforAdvancedStudies(IAEN)thegovernmentalaskedaninternationalteamofresearcherstodrawupaparticipatoryprocesstocraftatransitionstrategyforasocietybasedontheideaofa“socialknowledgeeconomy”–aneconomybasedonfreeanopenaccesstoknowledgeconceivedasacommons.Andwhiletheprojectwasrootedintheparticularcontextand

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concernsofEcuador,theissues,sectors,andpolicyproposalsthatwereaddressedalsotranscendedthislocalsituation.

ThelocalcontextwasthatEcuadorisstillessentiallyinadependentsituationvis-a-visthewestern-dominatedglobaleconomy,whichmeansthatitneedstoexportrawmaterialatlowaddedvalue,andimportconsumergoodsathighaddedvalue.It’sascenarioforpermanentdependencythattheprogressivegovernmentwantedtochange.TheFLOKProjectwasakeystrategytoaidinthiseffort.FollowingtheleadofMinisterReneRamirezofSENESCYT,FLOKaimedtoenvisageaneconomythatwouldnolongerbedependentonlimitedmaterialresources,butoninfiniteimmaterialresources–suchasknowledge.

TheproposalsoftheresearchteamconsistedofagenericCommonsTransitionPlan,and18+legislativeproposalsincludingadozenpilotprojects,whichwerefurtherdevelopedandvalidatedintheBuen Conocer SummitattheendofMay2014.ThesyntheticproposalswerethenpresentedbytheresearchteamattheendofJune2014,whilestillbeingfinessedforscientificpublication.TheproposalsarenowbeingprocessedintheEcuadorianadministration,andbeingsubmittedtopoliticalreviewandassessment.

SeveralaspectsoftheEcuadorianprocesswherehighlyprogressive,suchastheintenseparticipatoryprocessandtheopennesstobothlocalandforeigninput,whichisbothinnovativeandunusual.Sotoowasthewillingnesstolinktechnologicalandeconomicquestionswiththesocialandculturalconditionsinwhichtheymustberealized.

TheFLOKProject,theCommonsTransitionPlan,andthePolicyPapers,significantlytranscendthelocalcontextandhaveaglobalsignificance.

ThefirstcharacteristicoftheFLOKprocessisofcourseitsveryexistence.Thisisthefirsttimethatatransitionplantoacommons-basedsocietyandeconomyhasbeencrafted.Thereare‘neweconomy’,green,socialeconomy,andothertransitionplans,butnoneofthemhavefocusedonre-organizingsocietyandtheeconomyaroundthecentralconceptoftheCommonsasthecore

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valuecreationanddistributionsystem.

TheCommonsTransitionPlanisbasedonananalysisandobservationofthealreadyexistingcommonsprocessesandeconomies,andthevaluecrisisthattheyprovokewithinthecurrentpoliticaleconomy.Theriseofthedigitalcommonsisacaseinpoint.

Thereisagrowingcontradictionbetweennewrelationsofproductionemergingaroundthedigitalcommonsandtheeconomiestheyarecreating,andhowthisemergingprototypeofanewmodeofproductionisembeddedwithincapitalism.Inshort,whilemoreandmoreusevalueiscreatedinandthroughthecommons,onlyafractionofthisisbeingmonetized.Whenthiscommons-producedusevalue(suchasfreeandopensoftware(FOSS))ismonetizedintoexchangevalue,itisdonesothroughproprietaryplatformsthatveryseldomshareanyofthisexchangevaluewiththecreators.

Henceweseeanevolutionfromatypeofcapitalismthatwasbasedontheextractionofrentthroughtheprivatizationofknowledgeandthecontrolofintellectualpropertyandsupplynetworks(cognitivecapitalism),toanewformof‘netarchicalcapitalism’inwhichproprietaryplatformsbothenablehumanco-operationbutalsoexploititforthebenefitofprivatecapital.Inotherwords,netarchicalcapitalismdirectlyextractsvaluefromhumanco-operationitself.Moreover,inourcurrentinformationage,thewholeofsocietyisbeingtransformedintoa“socialfactory”producingcommons-generatedgoodsandservices.Thecasesofuncompensateduser-generatedvalueforFacebookandGoogleareobviousexamples.

Thefailureofnetarchicalcapitalismtoreturnfairvaluetoitscreatorshastransposedthetraditionalexploitationoflabourintheproductionofmaterialgoodstothatofimmaterialgoodssuchasknowledge,branding,andideasthatarenowthedrivingforceofcapitalaccumulation.Thishasgreatlyincreasedtheprecariousnessofbothworkersandcommonerstheworldover.Hence,anytransitionmustalsosolveandrestorethefeedbackloopbetweenvaluecreationanddistribution,andcreateanethicalandciviceconomyaroundthecommons,movingfromextractiveformsof

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exploitativecapital,togenerativeformsofco-operativecapital.Inotherwords,capitalthatreturnsvaluetothosethatcontributetothecommons.

Thisprocessrequiresthere-conceptionandre-alignmentbothoftraditionalcommonsandco-operativethinking,andpractice,intonewinstitutionalformsthatprefigureanewpoliticaleconomyofco-operativecommonwealth.Thisinturn,isbasedonasimultaneoustransitionofcivilsociety,themarket,andtheorganizationandroleofthestateandformsafoundationprincipleoftheCommonsTransitionPlan.

Formostofthehistoryofindustrialandpost-industrialcapitalism,theprimarypoliticalconflicthasbeenonebetweenstateandmarket–whethertousethestatepowerforredistributionofwealthandregulationoftheexcessesofthemarket,ortoallowmarketplayerstoprivatizethevalueofpublicandsocialgoodsandservicesforthebenefitofcapital.Thisistheclassicconflictbetweensocialversusprivatebenefitandhasbeencalledbysomethelib(forliberal)vs.lab(forlabouranditsderivativesocialmovements)pendulum.Inourcurrentpoliticaleconomy,exceptforafewresearcherswhooperatedoutsideofthemainstream,suchasElinorOstromandherresearchonthecommons,thefocusonsocialvalueandthecommongoodhasbeendiscardedasahistoricallegacywithoutfuture.Indeed,theremainingphysicalcommonsthatexistglobally,mostlyintheSouth,areeverywhereunderthreatwhileunderausterity,whatremainsofpublicgoodsinEuropeandNorthAmericaarealsobeingprivatizedatbreakneckspeeds.

Buttheemergenceofdigitalknowledge,softwareanddesign,asnewformsofcommonsnotonlyrecreatecommons-orientedmodesofproductionandmarketactivities,theyalsoshowthatvalueisnowincreasinglycreatedthroughcontributions,nottraditionallabor,tocreatecommons,notcommodities.Throughitscontributionsandtheubiquityofdigitaltechnology,itcanbesaidthatcivilsocietyhasnowbecomeproductiveinitsownright,andwecanmakealeapfromcontributorcommunitiesofsoftwaredeveloperstoavisionofcivilsocietythatconsistsofcivilcommonscontributedtobycitizens.

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Theentrepreneurialactivitiesthatarecreatedaroundthecommonsinducethevisionofanethicaleconomy,anon-capitalistmarketplacethatre-introducesreciprocityandco-operationinthemarket’sfunctioning,whileco-creatingcommonsandcreatinglivelihoodsforthecommoners.Thistypeofeconomyandmarketinwhichco-operation,mutuality,andthecommongooddefinethecharacteristicsofanewkindofpoliticaleconomy,pointthewaytoanewstateform,whichwehavecalledthePartnerState.

Thus,thecommonsnotonlyintroducesathirdtermnexttothestateandthemarket,i.e.thegenerative,commons-producingcivilsociety,butalsoanewmarketandanewstate.AfoundationprincipleofaCommonsTransitionPlanisthatthechangesmusthappenconcurrentlyinallthreeaspectsofoursocialandeconomiclife.

ThroughthePartnerStateconcept,thereportproposestheradicaldemocratizationofthestate,themobilizationandexpansionofthesocial/solidarityeconomy,thecreationanduseofpublic-commonspartnerships,theco-operitizationofpublicservices,andotherinnovativeconceptsandpracticesthatcouldfundamentallyrenewourpoliticaleconomy.Theseideasaredevelopedintheseconddocument.

AthirdcontributionbyGeorgeDafermos,showsapolicyreportonOpenDesignCommonsandDistributedManufacturingdevelopingontheworkaroundtheFLOKtransitioninEcuador,togivethereaderatasteofwhatthesechangescouldmeaninaconcretesector.

Inaddition,weaddedaninterviewwithoneoftheco-researchersJaniceFiguereido,aboutthemorepracticalaspectsoftheprojects,andherinteractionasaresearcherwithlocalcivicgroups.

Butwhatnow?WhatcomesaftertheFLOKexperienceinEcuador?

TheeBookyoureadhereispartofanongoingefforttocreateanopenpublicforumforfurthercommons-drivenandcommons-orientedpolicy-making,thatisdistinctfromitsfirstiterationinEcuador(floksociety.org),andisopentoallcontributionsfromcommonersglobally.

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Theprojectwillbecarriedbyaconsortiumofcommonsandco-operativemovements,thatarediscussingtheirrelativesupportatthistime,andtheP2PFoundationwillofcoursebeoneofthepartners.WiththeCommonsTransitionPlanasacomparativedocument,weintendtoorganizeworkshopsanddialoguestoseehowothercommonslocales,countries,language-communitiesbutalsocitiesandregions,cantranslatetheirexperiences,needsanddemandsintopolicyproposals.ThePlanisnotanimpositionnorisitaprescription,butsomethingthatisintendedasastimulusfordiscussionandindependentcraftingofmorespecificcommons-orientedpolicyproposalsthatrespondtotherealitiesandexigenciesofdifferentcontextsandlocales.

Aspartofthisprocess,wehavealreadyconcludedaworkshopwiththeReseau Francophone des CommunsinParisinSeptember,andworkshopswithSyrizaofficialsinGreece.Theideaisnottosupportorchooseanypoliticalorsocialmovement,buttoenableallprogressiveandemancipatoryforcestolookforcommonalitiesaroundtheirapproaches,andtorenewtheirpoliticalvisionswiththecommonsinmind.

Thisprojecttherefore,isitselfacommons,opentoallcontributions,andintendedforthebenefitofallwhoneedit.

Pleasevisitusatwww.commonstranstion.org

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ACommonsTransitionPlanByMichelBauwens

“Theemancipatoryforcesoftheworldurgentlyneedtomoveawayfromthesimplemarket/stateduopolyandthefalsebinarychoicesbetween‘moremarket’or‘morestate’.Asanalternative,weproposethatwemovetoacommons-centricsocietyinwhichapost-capitalistmarketandstateareattheserviceofthecitizensascommoners.Whiletherearealreadysubstantial,ifnotthriving,socialmovementsinfavorofthecommons,thesharingsocietyandpeer-to-peerdynamics,thisisthefirstcoherentefforttocraftatransitionprograminwhichthistransformationisdescribedinpoliticalandpolicyterms.”

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BackgroundtotheCommonsTransitionProjectTheCommonsTransitionPlanyouareabouttoreadisrootedintheparticularexperienceoftheFLOKprojectinEcuador,whichtookplacemainlyinthefirsthalfof2014.ThiswasaresearchprojectcommissionedbythreegovernmentalinstitutionsinthestateofEcuador.ItsintentionwastohelpEcuadortransitiontoa‘socialknowledge’economyandsociety,i.e.,asocietyandeconomythatfunctionsascommonpoolsofsharedknowledgeineverydomainofsocialactivity.However,theexperience(especiallythe‘generic’transitionplanthatwasproposed)largelytranscendsthespecificsituationinEcuador.Here,weproposeaversionoftheplanthathasbeenchangedbyremovingmost,ifnotall,specificreferencestoEcuador.Nevertheless,itisusefultoknowsomeofthebackgroundoftheoriginalproject.HereisanexcerptoftheintroductiontotheEcuadorianversion:

TheNationalPlanforGoodLivingofEcuadorrecognizesandstressesthattheglobaltransformationtowardsknowledge-basedsocietiesandeconomiesrequiresanewformforthecreationanddistributionofvalueinsociety.TheNationalPlan’scentralconceptistheachievementof‘Buen Vivir‘(‘SumakKawsay‘,inKichwalanguage)or‘goodliving’;butgoodlivingisimpossiblewithouttheavailabilityof‘goodknowledge’,i.e.‘Buen Conocer‘(‘Sumak Yachay‘,inKichwalanguage).Thethirdnationalplanfor2013-2017explicitlycallsforanopen-commonsbasedknowledgesociety[1].PresidentCorreahimselfexhortedyoungpeopletoachieveandfightforthisopenknowledgesociety[2].TheFLOKSocietyisajointresearcheffortbytheCoordinatingMinistryofKnowledgeandHumanTalent(withMinisterGuillaumeLong),theSENESCYT,i.e.the‘SecretaríaNacionaldeEducaciónSuperior,Ciencia,TecnologíaeInnovación’(withMinisterReneRamirez)andIAEN,i.e.the‘InstitutodeAltosEstudiosdelEstado’(withrectorCarlosPrieto)todeveloptransitionandpolicyproposalstoachievesuchanopencommons-basedknowledgesociety.Theacronym

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FLOKrefersto:

Free,meaningfreedomtouse,distributeandmodifyknowledgeinuniversallyavailablecommonpools;Librestressesthatitconcernsfreeasinfreedom,notasin‘gratis’;Openreferstotheabilityofallcitizenstoaccess,contributetoandusethiscommonresource.

TheexplanationoftheFLOKacronymhighlightsoneofthelimitationsoftheoriginalproject.Indeed,theFLOKResearchteamwastaskedwiththetransitiontoa‘socialknowledge’economy,i.e.acommonsofknowledgeonly,andnotthecommonsofland,laborandmoney,whichKarlPolanyiconsideredtobethethreefalsecommoditiesthatwerenecessaryforcapitalism.

Afullcommonstransitionwouldconsiderthefourcommons,i.e.thePolanyiantriarchy,plustheknowledgecommons.Theresearchteamcircumventedthislimitationbyusingaspecificmethodologywhichsystematicallylookedat1)thefeedingmechanismsforthosecommons,manyofwhichrequireboth2)materialand3)immaterial(intangible)conditionsfortheirsuccessfuldevelopment.Hence,inthisroundaboutway,itwaspossibletointroducemanyoftherequirementsintermsofother‘physical’commons.Nevertheless,thelimitationstands,andanynewerversionoftheCommonsTransitionPlanwouldnecessarilyintegratethetransitionpoliciesfortheremainingthreecommons.Thecurrentrevisedversionhasalreadybeensubstantiallyde-FLOK’ed,thatis,itispublishedherewithmostifnotallofthereferencestotheEcuadoriancontextremoved.This‘generic’versionismeanttobe‘universal’,notintheoldeuro-centricmannerthatclaimstobeuniversallyapplicableasasinglesimilarprocess,butasareferencedocumentthatcanbediscussedindiverselocalcontexts,adaptedorrejectedinpartorwholedependingonthelocaldeliberationsofthecommoners.

Butdespitethediversityoflocalconditions,therearestructuralsimilaritiesforallwhoarepartofthecurrentdominantworld-systemofglobalizedcapitalism.Allpeopleoftheworldaresubjectedtothepseudo-abundanceofagrowth-basedsystemthat

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ignoresnaturallimits,andtotheartificialscarcitiesimposedby‘intellectualproperty’legislation,whichinhibitsandcriminalizesthefreecooperationofhumanity.Andallcountriesandpeoplesoftheworldsufferfromthesocialinjusticewhichaccompaniestheothertwoflaws.Theemancipatoryforcesoftheworldurgentlyneedtomoveawayfromthesimplemarket/stateduopolyandthefalsebinarychoicesbetween‘moremarket’or‘morestate’.Asanalternative,weproposethatwemovetoacommons-centricsocietyinwhichapost-capitalistmarketandstateareattheserviceofthecitizensascommoners.Whiletherearealreadysubstantial,ifnotthriving,socialmovementsinfavorofthecommons,thesharingsocietyandpeer-to-peerdynamics,thisisthefirstcoherentefforttocraftatransitionprograminwhichthistransformationisdescribedinpoliticalandpolicyterms.

Thereaderwillfindoriginalanalysisofthenewformsofnetworkedcapitalismandhowtheycanbeovercome;acritiqueofthepredatoryformsofthesharing/commonseconomiesthatalreadyexist;andnewconceptionsofcivilsociety,themarketandthestate,whichmustbetransformedsimultaneouslyandconvergentlyifwewanttoachievesuchatransition.Theaim,ofcourse,isnottoremainintheanalyticalphase,buttocraftlocalizedadaptedtransitionsthatcanalsoproduceglobalconvergencesforaction,andtobuildthesocialandpoliticalmovementsthatcanmakeithappen.

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TheFramingoftheProposal

TheThreeValueModelsandthetransitiontoaSocialKnowledgeEconomy

Inordertoframethetransitiontoa‘socialknowledgeeconomy’oraCommons-basedsocietalmodel,weuseaframingofthreeparticular‘valueextractionanddistribution’systems,whichdeterminehoweconomicvalueiscreated,extracted,anddistributed.Thetraditionalcapitalistvaluemodelisofcoursewellknown,buttheemergenceofaknowledgesocietyhasalreadychangedthesedynamicstoafundamentalextent.Inthetraditionalmodel,beforetheeraofnetworkedandcognitiveproduction,privatecapitalactorsinvestincapitalandlabor,andselltheindustrialandconsumerproductswithasurplusvalue.Butthenewmodelsofcognitivecapitalismworkwithdifferentmodelsofvalueextractionanddistribution,andwedistinguishthreedifferentmodels,whichincludesthepost-capitalistmodelofthesocialknowledgeeconomy.InthecontextofthisCommonsTransitionPlan,wedefinecognitivecapitalismgenericallyasthatmodelofcapitalismwheretheownershipandcontrolofinformationflowsisthekeyfactorfortheextractionofvalue[3].

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Ofthethreemodelswewilldistinguish,oneformisstilldominant,butrapidlydeclininginimportance;asecondformisreachingdominance,butcarrieswithinitselftheseedsofitsowndestruction;athirdisemerging,butneedsvitalnewpoliciesinordertobecomedominant.

Thefirstmodel:‘Classic’CognitiveCapitalismbasedonIPextraction

Thefirstformistheclassicformofcognitivecapitalism,basedona“rentier”capitalismthatextractsrentfromIntellectualProperty,andinwhichfinancialcapitaldominates.AgooddescriptionofthisformisMcKenzieWark’sHackerManifesto(2004),inwhichhedescribesthelogicof“vectoralcapitalism”,wherethe‘vectors’ofcommunicationareinthehandsofmassmediaandthemultinationalcorporationsthatorganizeproduction.

Thisfirstformofcognitivecapitalismwasdominantinthefirsteraofnetworkedcomputing,beforetheemergenceofthecivicinternetandtheweb,whenthenetworkswereexclusivelyinthehandsofmultinationalcompaniesand/orgovernmentsandtheircentralizedpublicchannels.Inthissystem,theprofitofcapitalisincreasingly

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dependenton‘intellectualproperty’regulationsthatkeeptechnical,scientific,commercialandotherformsofknowledgeartificiallyscarce,andthereforeallowtherealizationofsuper-profits.

Theprofitsofpurelyindustrialproductionhavebecomelow,butthebenefitsofIPandthecontrolofthenetworksofproductionthroughIT,allowforthegenerationofhugemonopolisticprofits.Thisfirstformofcognitivecapitalismisfarfromdying,isstillinfactdominant,butisneverthelessunderminedintheseconderaofnetworkedcomputing,whereinternetworksarenowdiffusedthroughoutsociety,andthevectorsofproductioncannolongerbemonopolized.Furthermore,theubiquityofdigitaltechnology,anditsabilitytoreproduceinformationalproductsatreducedmarginalcost,severelyunderminesthemaintenanceofanintellectualpropertyregimebasedonmaintainingartificialscarcity,throughlegalrepressionortechnologicalsabotage(suchastheuseofDigitalRightsManagement[4]).

Thesecondmodel:NetarchicalCapitalismbasedonthecontrolofnetworkedplatforms

Indeed,theseconderaofmassivelynetworkedcomputing,bornwiththepubliclyaccessibleinternet,hasunderminedthecontrolofthe“vectoral”class,andcreatedanewclassofcontrollers,thatof“netarchicalcapital”,thetypeofcapitalinvestmentthatcontrolsproprietarysocialmediaplatforms,butthatneverthelessenablesdirectpeertopeercommunicationbetweenindividuals.

Thissecondformofnetarchicalcapitalismisaformwherecapitalnolongercontrolsthedirectproductionofinformationandcommunication,butextractsvaluethroughitsnewroleasplatformintermediary.ThismodelreliesmuchmoremarginallyonIPprotection,butratherallowsp2pcommunicationwhilecontrollingitspossiblemonetizationthroughtheroleandtheownershipoftheplatformsforsuchcommunication.Typically,asinproprietarysocialmediasuchasFacebookorGoogle,thefrontendispeertopeer,i.e.itallowsp2psociality,butthebackendiscontrolled,thedesignisinthehandsoftheowners,asaretheprivatedataoftheusers,anditistheattentionoftheuserbasethatismarketedthroughadvertising.Thefinancializationofcooperationisstillthe

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nameofthegame.

Thisformisahybridformhowever,becauseitalsoallowsthefurthergrowthofp2psocialityinwhichmediaexchangeandproductionislargelyavailabletoaneverlargeuserbase.Thisformthusco-existswithmultipleformsofgrassrootsp2pproductionandexchange,andseesforexampletheemergenceofmoremonetarydiversity,intheformofmorelocalizedcomplementaryorcommunity-drivencurrencieswhichactasdefendersoflocaleconomicflows;andintheformofaglobalreservecrypto-currencylikeBitcoin,ashadowcurrencythatisusefulasa‘civic’post-Westphaliancurrencybutatthesametimeexhibitsthefeaturesoffinancialcapitalisminanexacerbatedfashion.Netarchicalcapitalismsuffersfromasevere‘valuecrisis’,inwhichthelogicofusevaluestronglyemergesandgrowsexponentially,butinademonetizedform.Theremainingmonetizedvaluerestsonspeculativevaluationofcooperativevaluecreationbyfinancialmarkets.

TheValueCrisisunderconditionsofnetarchicalcapitalism

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Neoliberalismwascharacterizedbyaparticular‘valuecrisis’whichexplodedinthesystemiccrisisof2008.Underthegeneralconditionsoftheneoliberalregime,thewagesoftheworkershavestagnated,andthepartthatgoestotheownersofcapitalincreased,creatingacrisisofaccumulation,whichwassolvedthroughcredit.Whencorporations,governmentsandthegeneralconsumer’screditbecameover-extended,by2008,theneoliberalsystementeredintoasystemiccrisis.

Alreadyunderneoliberalism,thematerialvalueoftheassetsofproductionarebutasmallpartoftheevaluationofacompany’svalue,andtheexcessvaluecanbeconsideredalreadyasaformofextractionofthehumanimmaterialcooperation.Underconditionsofcognitivecapitalism,especiallyunderitsnetarchicalform,thisvaluecrisisisexacerbated.Theperiodsincethe1990s,whencivicinternetworksbecameincreasinglyavailabletothewiderpopulation,andcommons-basedpeerproduction,andotherformsofnetworkedvaluecreationbecamepossible,sawthebirthofamixedregime.Throughthedifferentformsofpeerproductionandnetworkedvaluecreation,usevalueisincreasinglycreatedindependentlyoftheprivateindustrialandfinancialsystem,andtakesplacethroughtheciviccontributoryform,whereimmaterialusevalueisdepositedincommonpoolsofknowledge,codeanddesign.

In‘pure’peerproduction,whichwecancallaformof‘aggregateddistribution’oflabor,contributors,voluntaryorpaid,contributetoacommonpoolwheretheimmaterialvalueisdeposited;for-benefitassociations,suchastheFLOSSFoundations,enablethecontinuedcooperationtooccur;andentrepreneurialcoalitionsofmostlyfor-profitcapitalistenterprise,capturetheaddedvalueinthemarketplace.Inthismodel,thoughthereiscontinuedcreationofusevalueinthecommons,andthus,‘anaccumulationofthecommons’basedonopeninput,participatoryprocessesofproduction,andcommons-orientedoutputwhichisavailabletoallusers;capitalaccumulationcontinuesthroughtheformoflaborandcapitalintheentrepreneurialcoalitions.Butanincreasingamountofvoluntarylaborisextractedinthisprocess.

Inthesharingformofnetworkedvalue,characterizedbysocial

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media/networkingtakingplaceoverproprietaryplatforms,theusevalueiscreatedbythesocialmediausers,buttheirattentioniswhatcreatesamarketplacewherethatusevaluebecomesextractedexchangevalue.Intherealmofexchangevalue,thisnewformof‘netarchicalcapitalism’(thehierarchiesofthenetwork)maybeinterpretedashyper-exploitation,sincetheusevaluecreatorsgototallyunrewardedintermsofexchangevalue,whichissolelyrealizedbytheproprietaryplatforms.

Finally,intheformofcrowdsourcedmarketplaces-whichwecall‘disaggregateddistribution’becausetheworkersareisolatedfreelancerscompetingwithoutcollectivesharedIP-capitalabandonsthelaborformandexternalizesriskonthefreelancers.Accordingtopreliminaryresearchby‘digitallabor’researcherTreborScholz[5]theaveragehourlyincomeinsomecasesdoesnotexceed2dollarsperhour,whichiswaybelowtheU.S.Minimumwage.AtypicalexampleistheskillsmarketplaceTaskRabbit,wheretheworkerscannotcommunicatewitheachother,butclientscan.

Undertheregimeofcognitivecapitalism,usevaluecreationexpandsexponentially,butexchangevalueonlyriseslinearly,andisnearlyexclusivelyrealizedbycapital,givingrisetoformsofhyper-exploitation.Wewouldarguethatitcreatesaformofhyper-neoliberalism.Whileinclassicneoliberalism,laborincomestagnates,inhyper-neoliberalism,societyisdeproletarized,i.e.wagedlaborisincreasingreplacedbyisolatedandmostlyprecariousfreelancers;moreusevalueescapesthelaborformaltogether.

Underthemixedregimeofcognitivecapitalisminitsnetarchicalform,networkedvalueproductiongrows,andhasmanyemancipatoryeffectsinthesocialfieldofusevaluecreation,butthisisincontradictionwiththefieldofexchangevaluerealization,wherehyper-exploitationoccurs.Thisiswhatwemeanwhenwesaythatthereisanincreasedcontradictionbetweentheproto-modeofproductionthatispeerproduction,andassociatedformsofnetworkedvaluecreation;andtherelationsofproduction,whichremainunderthedominationoffinancialcapital.

Inthisnewhybridform,asectorofcapital,netarchicalcapitalism,hasliberateditselftosomesignificantdegreeoftheneedfor

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proprietaryformsofknowledge,butithasactuallyincreasedthelevelofsurplusvalueextraction.Atthesametime,usevalueescapesmoreandmoreitsdependencyoncapital.Thisformofhyper-neoliberalismcreatesacrisisofvalue.First,thepartofexchange-valuemediatedlabor,diminishescomparedtotheroleofdirectusevaluecreation,makingcapitalincreasinglysuperfluousandparasitical;second,theformsofvaluecreationexplode,butthecontinuedrelianceonmonetizedexchangevaluedoesnotallowfortherealizationofthatvaluebytheusevalueproducers;profitsintheindustrialeconomydiminishaswell,makingthefinancialsectoranditsrelianceonIPrenttheincreasinglydominantpower;atthesametime,thepowerofIPrentextractionisunderminedbydirectusevaluecreation.

Inanycase,allthesetrendscreateacrisisfortheaccumulationofcapital;thefeedbackloopbetweenusevaluecreation,andtheexchange-valuecapture,ideallyredistributedeitheraswagesorthroughsocialpayments,isbroken;over-relianceondebtrendersmassivelendingmootasasolution.Capitalbecomesmorereliantontheexternalitiesofsocialcooperation,yetfailstorewardit.Astheconceptof‘value’becomesincreasinglyunclearandcomplex(andde-linkedfromaclearcorrelationtohourlylabor),financialcapitalismattemptstorealizethevalueofthissocialcooperationthroughspeculativemechanismsinstead,butwhichthenpotentiallyincreasetheamountoffictitiouscapitalinthesystem(thefictitiouscapitalisactuallytheunrealizedusevaluethatisnolongerrewardedbecauseofthevaluecrisis).

ThesecorrelatedissuesareexaminedindepthbyAdamArvidssonandNicolaiPeitersenintheirbookontheEthicalEconomy(2013).Wecouldcallthisvalueregimeneo-feudal,becauseitreliesincreasinglyonunpaid‘corvee’andcreateswidespreaddebtpeonage.Finally,ownershipisreplacedbyaccess,diminishingthesovereigntythatcomeswithproperty,andcreatingdependenciesthroughtheone-sidedlicensingagreementsinthedigitalsphere.

Towardsathirdmodel:amature‘civic’peer-to-peereconomy

Thethirdisthehypotheticalformwebelievewemaysuccessfully

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transitionto,ifwesucceedinrebuildingtransformativesocialmovements,andhencesucceedalsointransformingthestatesothatitcanactasaPartnerStatewhichfacilitatesthecreationofnewcivicinfrastructures.Inthismodel,peerproductionismatchedtobothanewmarketandstatemodel,createamaturecivicandpeer-basedeconomic,socialandpoliticalmodel,wherethevalueisredistributedtothevaluecreators.

Thesechangeshavebeencarriedforwardinthepoliticalspherebyanemergingcommonsmovement,whichespousesthevaluesystemofpeerproductionandthecommons,drivenbytheknowledgeworkersandtheirallies.

Solvingthevaluecrisisthroughasocialknowledgeeconomy

Sincethemixedmodelseemstocreateuntenablecontradictions,itbecomesnecessarytoimagineatransitiontoamodelwheretherelationsofproductionarenotincontradictionwiththeevolutionofthemodeofproduction.Thismeansasystemofpoliticaleconomy

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whichwouldbebasedontherecognition,andrewarding,ofthecontributivelogicatworkincommons-orientedpeerproduction.

Ifwelookatthemicro-level,werecommendtheintermediationofcooperativeaccumulation.Intoday’sfreesoftwareeconomy,openlicencesenablethelogicofthecommons,oreventechnically,‘communism’(eachcontributeswhathe/shecan,eachuseswhatisneeded),butcreatedaparadox:‘themorecommunisticthelicense,themorecapitalistictheeconomy’,sinceitspecificallyallowslargefor-profitenterprisestorealizethevalueofthecommonsinthesphereofcapitalaccumulation.Hence,ironically,thegrowthofa‘communismofcapital’.Weproposetoreplacethenon-reciprocal‘communistic’licenses,withsocialistlicenses,i.e.basedontherequirementofreciprocity.

Hence,theuseofapeerproductionlicense[6]wouldrequireacontributiontothecommonsforitsfreeuse,atleastfromfor-profitcompanies,tocreateastreamofexchangevaluetothecommoners/peerproducersthemselves;inaddition,commonerswouldcreatetheirownmarketentities,createaddedmarketvalueontopofthecommons,realizethesurplusvaluethemselves,andcreateanethicaleconomyaroundthecommons,wherethevalueoftheproductionofrivalgoodswouldberealized.

Suchethicalentrepreneurialcoalitionswouldlikelyenableopenbookaccountingandopensupplychains,thatwouldcoordinatetheeconomyoutsideofthesphereofbothplanningandthemarket.Theethicalentrepreneurialcoalitionscouldexpandthesphereofthecommonsbytheuseofcommonsventures,suchasinthe‘venturecommunist’modelproposedbyDmytriKleiner.

Inthismodel,cooperativesinneedofcapitalwouldfloatabondthatwouldallowthepurchaseofmeansofproduction.Thesemeansofproductionwouldbelongtothecommons;inotherwords,themachineswouldberentedfromthecommonpool,butthisrentwouldalsoberedistributedtoallthemembersofthecommons.Inthisbinaryeconomicform,thecommoners-cooperatorswouldreceivebothawagefromtheircooperative,butalsoanincreasingpartofthecommonrent.(Inaddition,allcitizenswouldbenefitfromabasicincomeprovidedbythePartnerState).

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Suchentrepreneurialcoalitions,intrinsicallyinsolidaritywiththeircommons,couldalsomovetopracticessuchasopenaccountingandopenlogistics,whichwouldallowforwidespreadmutualcoordinationoftheirproductivecapacities,henceusheringanewthirdmodelofallocationthatwouldbeneitheramarket,noraplanningsystem.(Insuchasystem,actionandproductionarecoordinatedthroughopenmutualsignallinginafullytransparentsystem.[7])Inotherwords,thestigmergiccoordination,whichisalreadyoperatinginthesphereof‘immaterial’productionsuchasfreesoftwareandopendesign,wouldgraduallybetransferredtothesphereof‘material’production.

Tothedegreethatsuchstigmergicsystemscreatethepossibilityofresource-basedeconomicmodels,suchspheresoftheeconomywouldbegraduallydemonetizedandreplacedbymeasurementsystems(i.e.commoditycurrencieswith‘storeofvalue’systemswouldgraduallydisappear).However,suchchangesatthelevelofthemicro-economywouldnotsurviveahostilecapitalistmarketandstatewithoutnecessarychangesatthemacro-economiclevel;hencetheneedfortransitionproposals,carriedbyaresurgentsocialmovementthatembracesthenewvaluecreationthroughthecommons,andbecomesthepopularandpoliticalexpressionoftheemergingsocialclassofpeerproducersandcommoners-alliedwiththeforcesrepresentingbothwagedandcooperativelabor,independentcommons-friendlyentrepreneurs,andagriculturalandserviceworkers.

FourTechnologyRegimes

Valueregimesaremoreorlessassociatedwithtechnologyregimes,sincetheforcesatplaywanttoprotecttheirintereststhroughthecontroloftechnologicalandmediaplatforms,whichencouragecertainbehaviorsandlogics,butdiscourageothers.Thepowersovertechnologicalprotocolsandvalue-drivendesigndecisionsareusedtocreatetechnologicalplatformsthatmatchproprietaryinterests.Thus,evenaspeertopeertechnologiesandnetworksarebecomingubiquitous,ostensiblysimilarp2ptechnologieshaveverydifferentcharacteristicswhichleadtodifferentmodelsofvaluecreationanddistribution,andthusdifferentsocialandtechnologicalbehaviors.

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Innetworks,humanbehaviorcanbesubtlyornotsosubtlyinfluencedbydesigndecisionsandinvisibleprotocolsthataredesignedintheinterestoftheownersormanagersoftheplatforms.Thefollowinggraphicisorganizedaroundtwoaxes,whichdetermineatleastfourdistinctpossibilities.Thefirsttop-downaxisdistinguishescentralizedtechnologicalcontrol(andanorientationtowardsglobality)fromdistributedtechnologicalcontrol(andanorientationtowardslocalization);thehorizontalaxisdistinguishesafor-profitorientation(whereanysocialgoodissubsumedtothegoalofshareholderprofit),fromfor-benefitorientations(whereeventualprofitsaresubsumedtothesocialgoal).

Thefourpotentialscenariosarediscussedhere:

NetarchicalCapitalismasatechnologicalregime:peertopeerfrontend,hierarchicalback-end

Netarchicalcapitalism,thefirstcombination(upper-leftquadrant),matchescentralizedcontrolofadistributedinfrastructurewithanorientationtowardstheaccumulationofcapital.NetarchicalcapitalisthatfractionofcapitalwhichenablesandempowerscooperationandP2Pdynamics,butthroughproprietaryplatformsthatareundercentralizedownershipandcontrol.Whileindividualswillsharethroughtheseplatforms,theyhavenocontrol,governanceor

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ownershipoverthedesignandtheprotocolofthesenetworks/platforms,whichareproprietary.Forexamples,thinkofFacebookorGoogle.Typicallyunderconditionsofnetarchicalcapitalism,whilesharerswilldirectlycreateorshareusevalue,themonetizedexchangevaluewillberealizedbytheownersofcapital.Whileintheshorttermitisintheinterestofshareholdersorowners,thisalsocreatesalongertermvaluecrisisforcapital,sincethevaluecreatorsarenotrewarded,andnolongerhavepurchasingpowertoacquirethegoodsthatarenecessaryforthefunctioningofthephysicaleconomy.

DistributedCapitalismasatechnologicalregime:thecommodificationofeverything

Thesecondcombination,(bottom-leftquadrant)called“distributedcapitalism”,matchesdistributedcontrolbutwitharemainingfocusoncapitalaccumulation.ThedevelopmentoftheP2PcurrencyBitcoin,theKickstartercrowdfundingplatform,andtheprivatelyownedsharingplatforms,arerepresentativeexamplesofthesedevelopments.Underthismodel,P2Pinfrastructuresaredesignedinsuchawayastoallowtheautonomyandparticipationofmanyplayers,whoareallowedtointeractwithouttheclassicintermediaries,butthemainfocusrestsonprofit-making.InBitcoin,alltheparticipatingcomputerscanproducethecurrency,therebydisintermediatinglargecentralizedbanks.However,thefocalpointremainsontradingandexchangethroughacurrencydesignedforscarcity,andthusmustbeobtainedthroughcompetition.Theconsciousdeflationarydesignofthecurrencyinsuresapermanentincreaseinvalue,andthusencourageshoardingandspeculation.

Ontheotherhand,Kickstarterfunctionsasareversemarketwithprepaidinvestment.Undertheseconditions,anyCommonsisabyproductoranafterthoughtofthesystem,andpersonalmotivationsaredrivenbyexchange,tradeandprofit.ManyP2Pdevelopmentscanbeseenwithinthiscontext,strivingforamoreinclusionarydistributedandparticipativecapitalism.Thoughtheycanbeconsideredaspartof,say,ananti-systemicentrepreneurialismdirectedagainstthemonopoliesandpredatoryintermediaries,theyretainthefocusonprofitmaking.Here

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distributionisnotunderstoodas“local”,asthevisionisratherofavirtualeconomywheresmallplayerscanhaveaglobalcompact,andcreateglobalaggregationsamongthemselves.However,despitetheidealsexpressedbythepoliticalandsocialmovementsassociatedwithsuchamodel(suchasanarcho-capitalismandtheAustrianSchoolofEconomics),inpractice,thesedynamicsinevitablyleadtoconsolidationandconcentrationofcapital.

ResilienceCommunityPlatformsDesignedforRe-Localization

ThefollowingmodelassociatesdistributedlocalcontroloftechnologicalplatformswithafocusonthecommunityorCommons,andaimstocreate“resiliencecommunities”thatcanwithstandthevagariesofanunstableglobalmarketplace.(thebottom-rightquadrant).Thefocushereismostoftenonrelocalizationandthere-creationoflocalcommunity.Itisoftenbasedonanexpectationforafuturemarkedbysevereshortagesofenergyandresources,orinanycaseincreasedscarcityofenergyandresources,andtakestheformoflifeboatstrategies.

InitiativesliketheDegrowthmovementortheTransitionTowns,agrassrootsnetworkofcommunities,canbeseeninthatcontext.Inextremeforms,theyaresimplelifeboatstrategies,aimedatthesurvivalofsmallcommunitiesinthecontextofgeneralizedchaos.Whatmarkssuchinitiativesisarguablytheabandonmentoftheambitionofscaleandthefocusonstrongandresilientlocalcommunities.Thoughglobalcooperationandwebpresencemayexist,thefocusremainsonthelocal.Mostoften,politicalandsocialmobilizationatscaleisseenasnotrealistic,anddoomedtofailure.Inthecontextofourprofit-makingversusCommonsaxisthough,theseprojectsaresquarelyaimedatgeneratingcommunityvalue.Agenericcritiqueofthismodelisthatitdoesnotgeneratecounter-poweroracounter-hegemonyforthemodel,astheglobalizationofcapitalisnotmatchedorkeptincheckbyacounterforceofthesamescale.Hencetheneedforasecondalternativemodel,whichalsorecognizestheimportanceofscaleandpaysattentiontothedynamicsofglobalpowerandgovernance.

TheGlobalCommonsScenarioasthedesiredalternative

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The“GlobalCommons”approach(upper-rightquadrant)isagainsttheaforementionedfocusonthelocal,focusingontheglobalCommons.AdvocatesandbuildersofthisscenarioarguethattheCommonsshouldbecreatedfor,andfoughtfor,onatransnationalglobalscale.Thoughproductionisdistributedandthereforefacilitatedatthelocallevel,theresultingmicro-factoriesareconsideredasessentiallynetworkedonaglobalscale,profitingfromthemutualizedglobalcooperationbothonthedesignoftheproduct,andontheimprovementofthecommonmachinery.Anydistributedenterpriseisseeninthecontextoftransnationalphyles,i.e.alliancesofethicalenterprisesthatoperateinsolidarityaroundparticularknowledgeCommons,onaglobalandnotsimplylocalscale.

Thus,thoughtheproductionislocal,thesocial,politicalandeconomicorganizationisglobal,andabletocreateacounter-poweratthatscale.Inaddition,politicalandsocialmobilization,onregional,nationalandtransnationalscale,isseenaspartofthestruggleforthetransformationofinstitutionsateverylevelofscale.ParticipatingenterprisesarevehiclesforthecommonerstosustainglobalCommonsaswellastheirownlivelihoods.Thislatterscenariodoesnottakesocialregressionasagiven,andbelievesinsustainableabundanceforthewholeofhumanity.

Cognitive/NetarchicalCapitalismvs.anOpen-CommonsbasedKnowledgeSociety

Itmaybeusefulheretodirectlycomparetwosyntheticandcountervailingscenarios.Ontheonehand,thefor-profitdrivenscenariosthatareinharmonywiththepresentpoliticaleconomyofcapital;andontheotherhand,thealternativescenarioofthesocialknowledgeeconomybasedonopen-commonsprinciples.

So:Whatexactlyisanopen-commonsbasedeconomyandsociety?Tounderstanditwemustfirstlookattheoldersocialandeconomicmodelthatitreplaces.Theneoliberalandcapitalisteconomicformscombinethreebasicelements,fundamentalchoicesthatguidetheiroperation.Thefirstisthebeliefthattheearth’sresourcesareinfinite,whichallowsanideaofpermanentandcompound

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economicgrowthintheserviceofcapitalaccumulation.Neoliberalcapitalismisthereforebasedonanillusionofafakeor‘pseudo-abundance’;anditsgrowthmechanismisdedicatedtothesenselessaccumulationofmaterialriches.

Thesecondisthebeliefthattheflowofknowledge,scienceandcultureshouldbeprivatized,andthereforeservestheexclusivebenefitofpropertyowners.Knowledgeismadetoservecapitalaccumulationandtheprofitsofthefew.Theprivatizationofknowledgethroughexcessivecopyrightsandpatentregimeshaveadramaticallyslowingeffect,andallowforanexclusionaryfinancialization.Thisleadstothecreationandmaintenanceofartificialscarcity.Whilemarketscanbeconsideredtobeanallocationmechanismforscarceandrivalgoods(ascarcityallocationmechanism),contemporaryIP-proprietarycapitalismisascarcity-engineeringmechanismswhichcreatesandincreasesscarcities.

Finally,thetwofirstelementsareconfiguredinsuchawaythattheydonotservesocialjustice,equality,andbenefitsforall,butratherthebenefitsandprofitsforthefew.Undercognitivecapitalism,thefruitsofsocialcooperationareenclosedandfinancialized,andthemajorityofthepopulationhastopayforknowledgethatislargelysociallyproduced.Onlythosewithmoneycanbenefitfromtechnicalandscientificinnovations.Then,wemustlookatthepositivecounter-reactionsthathaveemergedandwhichhavebeenparticularlystrengthenedafterthecrisisofneoliberalism,whichwasfeltbysoutherncountriesinthepreviousdecades,butbecameglobalin2008.

Afirstreactionhasbeentherecaptureofthestatebycitizenmovements,suchasparticularlyintheAndeancountrieslikeEcuador.Thesecondisare-emergenceandfloweringofneweconomicformsbasedonequity,suchasthecooperativeeconomy,thesocialeconomy,andthesolidarityeconomy.Thenewprogressivegovernments,andafewothers,areallcommittedtothestrengtheningofthesemoresociallyjusteconomicforms.

Third,wehaveseentheemergenceofasharingeconomy,whichismutualizingphysicalinfrastructures(thoughoftenintheformof

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privateplatforms)inordertore-useandmakeavailabletheenormousamountofsurplusmaterialandresourcesthathavebeencreatedinthelastthirtyyears.Apartfromtheexplosionofcarsharingandbikesharing,theyoftentaketheformof‘peertopeermarketplaces’,allowingcitizenstocreatemorefine-grainedexchangesoftheirsurplus.

Fourth,andperhapsmostimportantly,wehaveseen,thankslargelytothepotentialityoftheglobalnetworks,theemergenceofcommons-basedpeerproduction.Globallyandlocally,productivecommunitiesofcitizenshavebeencreatingvastcommonpoolsofknowledge,code(software),anddesign,whichareavailabletoallcitizens,enterprisesandpublicauthoritiestofurtherbuildon.Often,theseproductiveknowledgecommonsaremanagedbydemocraticfoundationsandnonprofits,whichprotectandenablethecommonproductiveinfrastructureofcooperation,andprotectthecommonpoolofknowledgefromexclusionaryprivateenclosure,mostoftenusingopenlicenses;theyaresometimescalled‘for-benefitassociations’.Veryoften,theseproductivecommunitiesco-existwithadynamicentrepreneurialcoalitionoffirmsco-creatingandco-producingthesecommonpools,therebycreatingadynamiceconomicsector.Itisverycommonfortheseopenecosystemstodisplacetheirproprietary-IPbasedcompetitors.

AU.S.reportonthe‘FairUseEconomy’,i.e.economicactivitiesbasedonopenandsharedknowledge,estimateditseconomicweightinthatcountrytobeone-sixthofGDP.Yetthereisalsoaparadox:itismostlikelythatitisthecapitalistformsthatfirstseethepotentialofthenewcommons-basedeconomicforms,andallywiththem;ontheotherhand,cooperativeeconomicformsrarelystillpracticeandco-produceopenknowledgepools.However,thereisanemergingtrendtotransformtheexistingcooperativetraditionbasedonsingle-stakeholdergovernance,intomulti-stakeholdergovernance,andwhichintroducethecareofthecommongoodintheirstatutes.Whatthismeansisthattheemergingglobalknowledgeeconomy,cantodaytaketwocompetingforms.Inthefirstformoftheknowledge-economy,undertheregimeofcognitivecapitalism,wehaveontheonehandthecontinuationofproprietaryIP,andtherealizationofeconomicrentbyfinancialcapital;combinedwithanewformof‘netarchical’capital,whichenables

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butalsoexploitssocialproduction.ItisnotdifficulttoseethattherichesofgiantslikeFacebookandGooglearebasedonthehyper-exploitationofthefreelaborofthecitizensusingtheirsocialnetworks.Theother,moredesirableformoftheknowledge-basedeconomyisbasedonopencommonsofknowledge,butwhicharepreferentiallylinkedtoanethicalandequitableeconomy.

TheSocio-EconomicImplicationsofaSocialKnowledgeEconomy

JohnRestakis,expertincooperatives,researchcoordinatorforFLOK’sSocialInfrastructureandInstitutionalInnovationinvestigationandauthorof“HumanizingtheEconomy:cooperativesintheAgeofCapital”[8]offersthefollowingpositivedescriptionofthesocialknowledgeeconomy[9]:

Inthecurrentdebateconcerningtheriseandconsequencesof“cognitivecapitalism”anewdiscourseisdevelopingaroundtheconceptofa“socialknowledgeeconomy”.Butwhatdoesasocialknowledgeeconomymeanandwhatareitsimplicationsforthewaysinwhichasocietyandaneconomyareordered?Cognitivecapitalismreferstotheprocessbywhichknowledgeisprivatizedandthencommodifiedasameansofgeneratingprofitforcapital.Inthisnewphaseofcapitalismthecentralizationandcontrolofknowledgeovertakesthetraditionalprocessesofmaterialproductionanddistributionasthedrivingforceofcapitalaccumulation.Inthepast,capitalismwasconcernedprimarilywiththecommodificationofthematerial.Essentialtothisprocesswasthegradualenclosureandprivatizationofmaterialcommonssuchaspasturelands,forests,andwaterwaysthathadbeenusedincommonsincetimeimmemorial.Inourtime,capitalismentailstheenclosureandcommodificationoftheimmaterial–knowledge,culture,DNA,airwaves,evenideas.

Ultimately,thedrivingforceofcapitalisminourageistheeradicationofallcommonsandthecommodificationofallthings.ThecolonizationandappropriationofthepublicdomainbycapitalisattheheartoftheNewEnclosures.Thisprocessissustainedandextendedthroughthecomplexandever-evolvingwebofpatents,copyrightlaws,tradeagreements,thinktanks,

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andgovernmentandacademicinstitutionsthatprovidethelegal,policy,andideologicalframeworksthatjustifyallthis.Aboveall,thelogicofthisprocessisembeddedinthevalues,organization,andoperationofthecapitalistfirm.

Bycontrast,asocialknowledgeeconomyisbasedontheprinciplethatknowledgeisacommonsthatshouldbefreeandopenlyaccessibleforthepursuitofwhatReneRamirez,MinisteroftheSenescytinnovationagencyinEcuador,describesas“goodliving”,notasaninstrumentofcommercialprofit.Knowledgeisperceivedasasocialgood.Astartingpointforansweringthisquestionistherecognitionthatknowledgeinasociety–itscreation,utilization,andvalue–isaconstructthatismoldedbythesocialandeconomicforcesthatdefinethepowerrelationsinacommunity.Knowledgehasalwaysbeenattheserviceofpower.

Cognitivecapitalism,theprocessbywhichhumanknowledgeisbothprivatizedandcommodified,resultsfromthedominationandpowerofcapitalisteconomicandsocialrelations,andinparticular,theundemocraticandprivatizednatureofeconomics,markets,andtheorganizationalstructureoffirms.Inpreviousagesknowledgewasalsocontrolledandmonopolized,totheextentthatitwaspossible,bykingorchurch.Today’sinformationtechnology,combinedwithglobalcorporatepower,hasmadesuchcentralizationandcontrolfareasierandfarmoreextensive.

Ifthecharacteranduseofknowledgeinasocietyisaproductofexistingpowerrelations,thepursuitofasocialknowledgeeconomymustalsoentailare-visioningandre-aligningofsocial,political,andeconomicrelationssuchthatthey,inturn,embodyandreinforcethevaluesandprinciplesofwhatknowledgeasacommonsimplies.Absentthis,howwouldasocialknowledgeeconomyoperate,orbesustained,inanoverwhelminglycapitalisteconomy?Wherearethesocialandeconomicspacesinwhichanopenknowledgecommonscouldbeusedintheserviceofthebroadercommunityorforcollectiveaims?Whatkindsororganizationsareneededtoinorderforknowledgetobeusedinthisway?Whataretheconditions

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necessaryforthemtothrive?Howcantheyprovideacounterweighttotheoverwhelmingpowerandinfluenceofcapital?

Withoutstrongcivicinstitutionscommittedtotheideaofthecommonsandthepublicgood,openknowledgesystemsarevulnerabletoappropriationandultimatecommodificationbycapitalistfirmsasiscurrentlythecasewiththeinternetitself.TherecentrulingoftheU.S.FederalCommunicationsCommissionintheUnitedStatesunderminingnetneutrality[10]

isamajoradvanceintheprivatizationofwhathasuntilnowbeenanequitablyaccessibleglobalcommonsofinformation.

Aneconomyinwhichknowledgeisacommonsintheserviceofsocialendsrequiresthecorrespondingsocialandeconomicinstitutionsthatwillmobilizeandprotectknowledgefortherealizationoftheseends.Theoperationofasocialknowledgeeconomyultimatelydependsonsocialandeconomicinstitutionsthatembodythevaluesofcommons,reciprocity,andfree,openanddemocraticassociationthatarepre-requisitesforthepursuitofsocialends.Inshort,asocialknowledgeeconomyultimatelyrestsonsocialeconomyvalues.

Justascognitivecapitalismdependsonthemanifoldinstitutionalsupportssuppliedbygovernmentpolicy,legislation,freemarketideology,andthecollectivepoweroffirmsandtheinstitutionsthatservethem,evenmoresodoesasocialknowledgeeconomyrequirethecorrespondingcivicandeconomicinstitutionsthatcansupportandsafeguardthevalueofcommons,ofcollectivebenefit,ofopenandaccessiblemarkets,andofsocialcontrolovercapital.Thesecivicinstitutionsareembodiedinthestructureofdemocraticenterprises,ofpeer-to-peernetworks,ofnon-profitsandcommunityserviceorganizations,ofmutuallysupportingsmallandmediumfirms,andofcivilsocietyandthesocialeconomyitself.Itisthesesocialandeconomicstructures,basedontheprinciplesofreciprocityandservicetocommunity,thatcanbestutilizeknowledgeasacommonsandsafeguarditsfutureasanindispensableresourceforthecommongoodandthewellbeingofhumanityasawhole.Theidentificationoftheseinstitutions

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andofthepublicpoliciesneededfortheirdevelopmentandgrowthistheoverarchingaimofthisresearch.

Discussion:IPandpatentsimpedeandslowdowninnovation

ByGeorgeDafermos,aresearcherindistributedmanufacturingbasedinCrete,Greece-andthecoordinatorofFLOK’sCommons-orientedProductiveCapacitiesinvestigation.

Intellectualpropertyrightsandtheirsupposedroleincognitivecapitalism

“Capitalistknowledgeeconomiesuseintellectualproperty(IP)rightsasmeansofenclosingknowledgeandasmechanismsbywhichtorealizetheextractionofmonopolyrentsfromknowledgethathasbeenthusprivatized.Thatisideologicallyjustifiedasfollows:exclusiveIPrightsprovideincentivesforindividualsandcompaniestoengageinresearchanddevelopnewproductsandservices.Thatis,theypromoteinnovation:theexpectationofprofitableexploitationoftheexclusiverightsupposedlyencourageseconomicagentstoturntheiractivitiestoinnovativeprojects,whichsocietywilllaterbenefitfrom(e.g.Arrow1962).ButisthatactuallyanaccuratedescriptionofthefunctionofIPrightsincapitalistknowledgeeconomies?Dotheyreallyspurinnovation?

Asynopsisofempiricalevidenceontheeffectofexclusiveintellectualpropertyregimesoninnovationandproductivity

Toanswerthisquestion,itisinstructivetolookattheavailableempiricaldataontheeffectofexclusiveIPrightsontechnologicalinnovationandproductivity.ThecaseoftheUnitedStatesisindicativeofacapitalistknowledgeeconomyinwhichtheflowofpatentshasquadrupledoverthelastthirtyyears:in1983theUSPatentOfficegranted59.715patents,whichincreasedto189.597in2003and244.341in2010(USPatentOffice2013).

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Lookingatthesenumbersbegsthequestion:howhasthedramaticincreaseinthenumberofpatentsissuedbytheUSPatentOfficeovertimeimpactedtechnologicalinnovationandproductivityintheUS?Well,accordingtotheUSBureauofLaborStatistics,theannualgrowthintotalfactorproductivityinthedecade1970-1979wasabout1,2%,whileinthenexttwodecadesitfellbelow1%.Inthesameperiod,R&Dexpenditurehoveredaround2,5%ofGDP(***).

Inshort,whatweseeisthatthedramaticincreaseinpatentshasnotbeenparalleledbyanincreaseinproductivityorinnovation.Nomatterwhichindicatorofproductivityorinnovationweuseintheanalysis,weareinvariablyledtotheconclusionthat‘thereisnoempiricalevidencethatthey[patents]servetoincreaseinnovationandproductivity,unlessproductivity[orinnovation]isidentifiedwiththenumberofpatentsawarded’(BoldrinandLevine2013,p.3;also,seeDosietal.2006).

AnotherargumentoftenvoicedbyproponentsofexclusiveIPrightsindefenseofpatentsisthattheypromotethecommunicationofideasandthat,inturn,spursinnovation.Theyclaimthatifpatentsdidnotexist,inventorswouldtrytokeeptheirinventionssecretsothatcompetitorswouldnotcopythem(e.g.Belfanti2004).Fromthisstandpoint,thesolutiontotheproblemisatradebetweentheinventorandsociety:theinventorrevealshisinnovationandsocietygiveshimtherighttoexploititexclusivelyforthenexttwentyorsoyears.Hence,theargumentgoes,totheextentthattheyreplacesociallyharmfultradesecrets,patentspromotethediffusionofideasandinnovations(Moser2013,pp.31-33).Inreality,however,patentshaveexactlytheoppositeeffect,encouragingignoranceandnon-communicationofideas.

Inwhathasbecomeastandardpractice,‘companiestypicallyinstructtheirengineersdevelopingproductstoavoidstudyingexistingpatentssoastobesparedsubsequentclaimsofwillfulinfringement,whichraisesthepossibilityofhavingtopaytripledamages’(Boldrin&Levine2013,p.9;Brec2008).Evenifthatwerenotalwaysthecase,thewayinwhichpatentdocumentsarewrittenactuallyrendersthemincomprehensibletoanyone

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exceptlawyers(Brec2008;Mann&Plummer1991,pp.52-53;Moser2013,p.39).

Therealfunctionofintellectualpropertyrightsincognitivecapitalism:howdocapitalistfirmsactuallyusethem?What,however,morethananythingelsedisprovestheclaimedpositiveeffectofpatentsoninnovationandcreativityisthewayinwhichpatentsareactuallyusedbycapitalistfirms.Inacapitalistknowledgeeconomy,patentsareusedprimarilyas(a)meanstosignalthevalueofthecompanytopotentialinvestors,(b)asmeanstopreventmarket-entrybyothercompanies(sotheyhavestrategicvalueindependentlyofwhethertheyareincorporatedinprofitableproducts)and(c)asweaponsinan‘arms-race’,meaningtheyareuseddefensivelytopreventorbluntlegalattacksfromothercompanies(e.g.,seeBoldrin&Levine2013;Cohenetal.2000;Hall&Ziedonis2007;Levinetal.1987;Pearce2012).Itwouldtakeaheroicleapoflogicforanyoftheseapplicationsofpatentstobeseenasproductive.

Ontheotherside,thereisaplethoraofcasesinwhichtheeffectofpatentsoninnovationandproductivityhasbeenundoubtedlydetrimental.Indicatively,considerhowMicrosoftiscurrentlyusingapatent(no.6370566)relatedtotheschedulingofmeetingsinordertoimposealicensingfeeonAndroidmobilephones(Boldrin&Levine2013***).Inthiscase,patentsbecomeamechanismforsharingtheprofitswithoutanyparticipationintheactualprocessofinnovation.Assuch,theydiscourageinnovationandconstituteapurewasteforsociety.

Interestingly,notthatlongago,BillGates(1991),Microsoftfounder,arguedthat‘ifpeoplehadunderstoodhowpatentswouldbegrantedwhenmostoftoday’sideaswereinvented,andhadtakenoutpatents,theindustrywouldbeatacompletestandstilltoday…Afuturestartupwithnopatentsofitsownwillbeforcedtopaywhateverpricethegiantschoosetoimpose’.Itisironic,ofcourse,thatMicrosoft,notbeingabletopenetratethemobiletelephonymarket,isnowusingthethreatofpatentlitigationtoraiseaclaimoverpartofGoogle’sprofits.

Thewayinwhichpatentsareusedincapitalistknowledge

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economiesmakesitblatantlyobviousthat‘inthelongrun…patentsreducetheincentivesforcurrentinnovationbecausecurrentinnovatorsaresubjecttoconstantlegalactionandlicensingdemandsfromearlierpatentholders’(Boldrin&Levine2013,p.7).Thisbecomesreadilyunderstood,consideringthattechnologicalinnovationisessentiallyacumulativeprocess(Gilfillan1935,1970;Scotchmer1991):Cumulativetechnologiesarethoseinwhicheveryinnovationbuildsonprecedingones:forexample,thesteamengine(Boldrinetal.2008;Nuvolari2004),butalsohybridcars,personalcomputers(Levy1984),theworldwideweb(Berners-Lee1999),YouTubeandFacebook.

Butifpatentshaveatbestnoimpactandatworstanegativeimpactontechnologicalinnovationandproductivity(Dosietal.2006),thenhowisitpossibletoexplain–especiallyfromthelegislator’sside–thehistoricalincreaseinpatentsandtheexpansionofIP-relatedlaws?Manyanalystshaveponderedthisquestion.Theconclusiontowhichtheyhavebeenledisratherunsettling:theactualreasonbehindtheproliferationofpatentsandtheexpansionofIP-relatedlawsconsistsinthepoliticalinfluenceoflarge,cash-richcompanieswhichareunabletokeepupwithnewandcreativecompetitorsandwhichusepatentstoentrenchtheirmonopolypower.

Discussion:theroleofIndigenousPeoplesand(Neo)TraditionalKnowledge

Argumentsforthespecificroleof(neo)-traditionalknowledgeandpeoplesinasocialknowledgetransition

TheoriginalcommonstransitionprojectinEcuador(FLOK),wasrootedintheadaptationoftheindigenousconceptof‘Buen Vivir‘(goodliving),whichpointstotheimportanceofreconnectingwiththecommonsvaluesandprinciplesoftheoriginalnativepeopleandtheexperiencesofpre-capitalist,andpre-modernsocieties,whichdidnotprioritizetheaccumulationofmaterialgoods.Suchneotraditionalapproaches,iftheyarebasedonamutualdialogue,areaveryimportantpartofatransitiontoasocialknowledgeeconomy.Inthefollowingsection,wemakethecasewhythisisso

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important.

*TheMainArgument:thecommonimmaterialityoftraditionalandpost-industrialeras

Itisnotdifficulttoarguethatmodernindustrialsocietiesaredominatedbyamaterialistparadigm.Whatexistsformodernconsciousnessismaterialphysicalreality,whatmattersintheeconomyistheproductionofmaterialproducts,andthepursuitofhappinessisinverystrongwaysrelatedtotheaccumulationofgoodsforconsumption.Fortheelite,itspowersderiveessentiallyfromtheaccumulationofcapitalassets,whethertheseareindustrialorfinancial.

Infinitematerialgrowthisreallythecoremantraofcapitalism,anditismadenecessaryandfacilitatedbytheverydesignofthecontemporarymonetarysystem,wheremoneyismostlycreatedtointerest-drivenbankdebt.Butthiswasnotthecaseintraditional,agriculture-basedsocieties.Insuchsocieties,peopleofcoursedohavetoeatandtoproduce,andthepossessionoflandandmilitaryforceiscrucialtoobtaintributefromtheagriculturalworkers,butitcannotbesaidthattheaimisaccumulationofassets.

Feudal-typesocietieswerebasedonpersonalrelationsconsistingofmutualobligations.Theseareofcourseveryunequalincharacter,butareneverthelessveryremovedfromtheimpersonalandobligation-lesspropertyformsthatcamewithcapitalism,wherethereislittleimpedimentforgoodsandcapitaltomovefreelytowhomeveritissoldto.Inthesepost-tribalbutstillpre-modernsocieties,boththeeliteandthemassbodyofproducersareunitedbyacommonimmaterialquestforsalvationorasimilarcorespiritualpursuitlikeenlightenment,etc…,anditistheinstitutionthatisinchargeoforganizingthatquest,liketheChurchinthewesternMiddleAgesortheSanghainSouth-EastAsia,thatisthedeterminingorganizationforthesocialreproductionofthesystem.Tributeflowsupfromthefarmingpopulationtotheowningclass,buttheowningclassisengagedinatwo-foldpursuit:showingitsstatusthroughfestivities,wherepartsofthesurplusisburnedup;andgiftingtothereligiousinstitutions.Itisonlythiswaythatsalvation/enlightenment,i.e.spiritualvalueormeritinallitsforms,

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canbeobtained.Themoreyougive,thehigheryourspiritualstatus.Socialstatuswithoutspiritualstatusisfrowneduponbythosetypeofsocieties.

ThisiswhyreligiousinstitutionsliketheChurchortheSanghaendupwithsomuchlandandpropertythemselves,asthegiftingcompetitionwasrelentless.Atthesametime,theseinstitutionsserveasthewelfareandsocialsecuritymechanismsoftheirday,byensuringthatapartofthatflowgoesbacktothepoorandcanbeusedintimesofsocialornaturalemergencies.Inthecurrentera,markedbyasteadydeteriorationofecosystems,isagainundergoingafundamentalandnecessaryshifttoimmateriality.

Herearejustafewofthefactsandargumentstoillustratemypointforashifttowardsonceagainanimmaterialfocusinoursocieties.Thecosmopolitaneliteofcapitalhasalreadytransformeditselfforalongtimetowardsfinancialcapital.Inthisformofactivity,financialassetsaremovedconstantlywherereturnsarethehighest,andthismakesindustrialactivityasecondaryactivity.Ifwethenlookatthefinancialvalueofcorporations,onlyafractionofitisdeterminedbythematerialassetsofsuchcorporations.Therestofthevalue,usuallycalled“goodwill”,isinfactdeterminedbythevariousimmaterialassetsofthecorporation,itsexpertiseandcollectiveintelligence,itsbrandcapital,thetrustinthepresentandthefutureexpectedreturnsthatitcangenerate.

Themostprizedmaterialgoods,suchassay,Nikeshoes,showasimilarquality;only5%ofitssalesvalueissaidtobedeterminedbyphysicalproductioncosts,alltherestisthevalueimpartedtoitbythebrand(boththecosttocreateit,andthesurplusvaluecreatedbytheconsumersthemselves).Theshifttowardsanimmaterialfocuscanalsobeshownsociologically,forexamplethroughtheworkofPaulRayonculturalcreatives,andofRonaldInglehartontheprofoundshifttopostmaterialvaluesandaspirations.

Forpopulationswhohavelivedformorethanonegenerationinbroadmaterialsecurity,thevaluesystemshiftsagaintothepursuitofknowledge,cultural,intellectualandspiritualexperience.Notallofthem,notallthetime,butmoreandmore,andespeciallysofortheculturaleliteof‘culturalcreatives’orwhatRichardFloridahas

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calledtheCreativeClass,whichisalsoresponsibleforkeyvaluecreationincognitivecapitalism.

Onemoreeconomicargumentcouldbementionedinthecontextofcognitivecapitalism.Inthismodelofoureconomy,thecurrentdominantmodelasfarasvaluecreationisconcerned,thekeysurplusvalueisrealizedthroughtheprotectionofintellectualproperties.DominantWesterncompaniescansellgoodsatover100to1,000timestheirproductionvalue,throughstateandWTOenforcedintellectualrents.Itisclearlytheimmaterialvalueofsuchassetsthatgeneratetheeconomicstreams,eventhoughitrequirescreatingfictitiousscarcitiesthroughthelegalapparatus.Wehavearguedbeforethatthismodelisunderminedthroughtheemergenceofdistributedinfrastructuresfortheproduction,distributionandconsumptionofimmaterialandculturalgoods,whichmakessuchfictitiousscarcityuntenableinthelongrun.Theimmaterialvaluecreationisindeedalreadyleakingoutofthemarketsystem.

Whileweneedsuchatransitiontowardsafocusonimmaterialvalue,italsocreatesverystrongcontradictionsinthepresentpoliticaleconomy,oneofthemainreasonswhyashifttowardsanintegratedsocialknowledgeeconomy,isavitalnecessity.

*TheSecondArgument:thenatureofpost-deconstructivetrans-modernism

Industrialsociety,itsparticularmentalandculturalmodels,areclearlyantagonistictotradition.Theoldstructuresmustgo:religionisseenassuperstition,communityisseenasrepressiveofindividuality,andtraditionisseenashamperingthefreeprogressofdynamicindividuals.Thismakesmodernismbothaveryconstructiveforce,forallthenewitiscapableofinstitutinginsociety,butalsoaverydestructiveforce,atwarwiththousandsofyearsoftraditionalvalues,lifestylesandsocialorganization.Itattemptstostripindividualsofwholisticcommunity,replacingitwithdisciplinaryinstitutions,andcommodity-basedrelations.

Thesubsequentpostmodernistphaseisacultural(butalsostructuralasitisitselfanexpressionofcapitalistre-organization)reactionagainstmodernityandmodernism.Postmodernismisabove

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alladeconstructivemovement.Againstall‘reification’and‘essentialisation’,itrelativiseseverything.Nothing,noindividualstandsalone,weareallconstitutedoffragmentsthatthemselvesarepartofinfinitefields.Throughinfiniteplay,thefragmented‘dividual’hasatitsdisposalinfiniteconstitutiveelementsthatcanberecombinedininfiniteways.

Thepositivesideofitisthatalongwithfreeinguswithfictitiousfixedframeworksofbeliefandmeaning,italsore-opensthegatesofthepastandoftradition.Everythingthatisusable,isre-usable,andthewaragainsttraditionends,tomakeplaceforpragmaticre-appropriation.Butastheverynameindicates,postmodernismcanonlybeafirstphaseofcritiqueandreactionagainstmodernityandmodernism,stillverymuchbeholdentoit,ifonlyinitsreactivitytoallthingsmodern.Itisdeconstructive,asocialregressionofthecollectiveegothatcanonlyreceiveultimatetherapeuticmeaningifitisfollowedbyareconstructivephase.Forpostmodernismtohaveanyultimatepositivemeaning,itmustbefollowedbyatransformative,reconstructivephase.Atrans-modernismifyoulike,whichgoes‘beyond’modernityandmodernism.

Inthatnewphase,traditioncannotjustbeappropriatedanylongerasanobject,butrequiresadialogueofequalswithtraditionalcommunities.Theyarevital,becausetheyalreadyhavetherequiredskillstosurviveandthriveinapost-materialage.

*TheThirdArgument:theproblematicnatureofun-changedtradition

Usingorreturningtoapre-modernspiritualtraditionfortransmoderninspirationisnotapaththatiswithoutitsproblemsordangers:itcanveryeasilybecomeareactionarypursuit,afruitlessattempttogobacktoagoldenagethathasonlyexistedintheimagination.Thecoreproblemisthatmanyspiritualtraditionsalloccurredwithinthecontextofexploitativeeconomicandpoliticalsystems.Thoughtheexploitationwasdifferent,mosttraditionalspiritualityanditsinstitutionsdevelopedinsystemsthatwerebasedontribute,slavery,orserfdom.Thesesystemsusuallycombinedadisenfranchisedpeasantpopulation,awarriororotherrulingclass,inwhichthetraditionalChurchorSanghaplayedacrucialrolefor

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itssocialreproduction.

Forexample,Buddhismonlybecameacceptabletotothe‘mainstream’societyofitstimewhenitacceptedtoexcludeslaves.Despiteitsradical-democraticpotential,itbecameinfusedwiththefeudalauthoritystructurethatmirroredthesocietyofwhichitwasapart.Thesespiritualitiesarethereforerifewithpatriarchy,sexismandotherprofoundlyunequalviewsandtreatmentsofhumanbeings.Thoughthelogicwasprofoundlydifferentfromcapitalism,theseformsofexploitation,andtheirjustificationbyparticularreligiousorspiritualsystemsandinstitutions,shouldprovetobeunacceptabletocontemporary(post/trans-modern)consciousness.

Perhapsasymmetricalbutequallyproblematicapproachwouldbethepureeclecticismthatcanbetheresultofpostmodernconsciousness,inwhichisolatedpartsofanytraditionaresimplystolenandrecombinedwithoutanyseriousunderstandingofthedifferentframeworks.Anotherproblemweseeisthefollowing:contemporarycommunicationtechnologies,andglobalizedtradeandtravel,andtheunificationoftheworldundercapitalism,havecreatedtheenhancedpossibilityforagreatmixingofcivilizations.Thoughcontactandinterchangewasalwaysareality,itwasslow,anditdifferentcivilizationalspheresreallydidexist,whichcreatedprofoundlydifferentculturalrealitiesandindividualpsychologies.TobeaChristianoraBuddhistmeanttohaveprofoundlydifferentorientationstowardslifeandsociety(despitestructuralsimilaritiesinreligiousorspiritualorganization).

Butagrowingpartofthehumanpopulation,ifnotthewholepart,isnowprofoundlyexposedtotheunderlyingvaluesoftheothercivilizationalspheres.Forexample,EasternAsiannotionshavesimilarlyalreadyprofoundlyimpactedwesternconsciousness.Inthiscontext,rootednessinone’scultureandspiritualtraditionscannolongerbeseparatedwithaglobalcosmopolitanapproachandacontinuousdialogwithviewpointsandframeworksthatoriginateelsewhere.Increasinglyglobalaffinitynetworksarebecomingasimportantaslocalassociationsininfluencingindividualsandtheiridentity-building.

*FourthArgument:theroadtodifferentialpost-industrial

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development

Ibelieveitwouldbefairtosaythatcontemporarycapitalismisamachinetocreatehomogeneityworldwide,andthatthisisnotanoptimaloutcome,asitdestroysculturalbiodiversity.Initscurrentformat,whichgotasevereshockwiththecurrentfinancialmeltdown,whichcombinesglobalization,neoliberalismandfinancialization,itisalsoanenormousapparatusofcoercion.Itunderminesthesurvivabilityoflocalagricultureandcreatesanenormousflighttothecities;itdestroyslong-standingsocialformssuchastheextendedfamily,andseverelyunderminestraditionalculture.

Ofcourse,Idonotwanttoimplythatallchangeortransformationisnegative,butratherstressthatittakesawaythefreedomofmanywhowouldmakedifferentchoices,suchasthosewhowouldwanttostayinalocalvillage.Itisherethatneotraditionalapproachesofferrealhopeandpotential.Insteadofthewholesaleimportofglobalhabitsandtechnologies,forwhichsocietyhasnotbeenpreparedandwhichisexperiencedasanaliengraft,itoffersanalternativeroadofchoosingwhattoacceptandwhattoreject,andtocraftalocallyadaptedroadtopost-industrialdevelopment.ItremindsusofGandhi’sconceptofSwadeshiandappropriatetechnology.Herejectedbothwesternhightech,whichwasnotadaptedtomanylocalsituations,butalsounchangedlocalagrariantraditionandtechnology,whichwashardlyevolving.Instead,headvocatedappropriatetechnology,anintermediaryleveloftechnologywhichstartedfromthelocalsituation,buttookfrommodernscienceandtechnologythenecessaryknowledgetocreatenewtoolsthatwereadaptedtothelocalsituation,yetofferedincreasesinproductivity.Neotraditionaleconomicscouldtakeasimilarapproach,butnotlimitedtoanattitudetotechnologyselection,buttothetotalityofpoliticalandsocialchoices.

Inthisway,inharmonywithlocalvalues,thoseaspectscanbechosenwhichincreasethequalityoflivelihoods,butdonotradicallysubvertchosenlifestylesandsocialforms.Itrepresentsanewapproachwhichcombinesthehightechofglobalizedtechnicalknowledge,withthehightouchelementsoflocalculture.Forexample,itbecomesimaginabletoconceiveoflocalvillages,

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adaptinglocalizedandsmall-scalemanufacturingtechniquesbasedonthelatestadvancesinminiaturizationandflexibilizationofproductiontechnologies,andwhicharegloballyconnectedwithglobalknowledgenetworks.

*FifthArgument:AdaptingtoSteady-StateEconomiesintheAgeoftheEndangeredBiosphere

Theessenceofcapitalismisinfinitegrowth,makingmoneywithmoneyandincreasingcapital.Aninfinitegrowthsystemcannotinfinitelyperdurewithlimitedresourcesinalimitedphysicalenvironment.Today’sglobalsystemcombinesavisionofpseudo-abundance,themistakenvisionthatnaturecanprovideendlessinputsandisaninfinitedump,withpseudo-scarcity,theartificialcreationofscarcitiesinthefieldsofintellectual,culturalandscientificexchange,throughexaggeratedandeverincreasingintellectualpropertyrights,whichhamperinnovationandfreecooperation.

Tobesustainable,ouremergingglobalhumancivilizationandpoliticaleconomyneedstoreversethosetwoprinciples.Thismeansthatwefirstofallneedasteady-stateeconomy,whichcanonlygrowtothedegreeitcanrecycleitsinputbacktonature,soasnottofurtherdepletethenaturalstock.Anditrequiresaliberalizationofthesharingandexchangeoftechnicalandscientificknowledgetoglobalopeninnovationcommunities,sothatthecollectiveintelligenceofthewholeofhumankindcanbedirectedtothesolvingofcomplexproblems.Thefirsttransformationiscloselylinkedtoourcontemporarymonetarysystemandalternativeanswerscanbefoundinthetraditionalconceptionsofwealthofpre-industrialsocieties.Forexample,traditionalreligionsassociatedwithagriculture-basedsocietiesandproductionsystems,outlawedinterest.Thereisagoodreasonforthat:whensomeoneextendsaloanwithinterest,thatinterestdoesnotexist,andtheborrowerhastofindthemoneysomewhereelse[11].Inotherwords,topaybacktheinterest,hehastoimpoverishsomebodyelse.Thisofcourse,wouldbeextremelysociallydestructiveinastaticsociety,andtherefore,itcouldnotbeallowedtohappen,whichexplainsthereligiousinjunctionagainstinterest.However,inmoderncapitalist

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societies,asolutionhasbeenfound:growth.

Aslongasthepieisgrowing,theinterestcanbetakenfromthegrowingpie.Theproblemhowever,isthatsuchamonetarysystemrequiresgrowth,infinitegrowth.Staticbusinessesareanimpossibility,sincethatwouldmeantheycannotpaybacktheinterest.Nowthatwehavereachedthelimitsofthebiosphere,nowthatweneedagainasteady-stateeconomy,weneedinterest-freemonetarysystems,andparadoxically,thereligiousinjunctionsagainmakesense.Thisisjustoneoftheconnectionsbetweenthetransmodernchallenges,andthevalueoftraditional,andreligioussystemsrootedinthepre-modernera,suchasBuddhistEconomics,andofcourse,thetraditionsof‘Buen Vivir‘.

Wecouldtakemanyotherexamples:forexample,modernchemicalagriculturedestroysthequalityoftheland,anddepletesit,sothatherealso,pre-moderntraditionalpracticesbecomeinterestingagain.However,aswestatedinthethirdargument,andrefinedinthefourthargument:sincetraditionisalsoproblematic,itcannotbesimplycopied,itcanonlybeusedinacriticalmanner.Anexampleofsuchacriticalapproachistheappropriatetechnologymovement.Inthisapproach,itisrecognizedthattraditionaltechnologyassuchisinsufficient,thathypermoderntechnologyisofteninappropriateinmoretraditionalsettings,andthattherefore,anintermediatepracticeisneeded,thatisbothrootedin‘tradition’,i.e.therealityofthelocalsituation,butalsoinmodernity,thecreativeuseoftechnologicalsolutionsandreasoning,soasthecreateanewtypeof‘appropriate’technologicaldevelopment.

*Conclusion:Cantheethosofthesocialknowledgeeconomybemixedwithneotraditionalapproaches?

Withtheemergenceofthesocialknowledgeeconomyandcommons-basedpeerproduction,andpracticeslikeopenanddistributedmanufacturing,anewalliancebecomespossible:thatbetweenthemosttechnologicallyadvancedopendesigncommunities,withthemajorityofthepeoplewhoarestillstronglylinkedtotraditionalpractices.Throughsuchanalliance,whichcombinesthetraditionalinjunctionforasteady-stateeconomyinharmonywithnaturalpossibilities,adifferentiatedpost-industrial

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futurecanbecreated,whichcanbypassthedestructivepracticesofindustrial-eramodernism,andcancreatean‘appropriatetechnology’future,wherebymoretraditionalcommunitiescanmorefreelydecidewhattoadaptandwhattoreject.Whileontheotherhand,transmodernopendesigncommunitiescanlearnfromthewisdomoftraditionalapproaches.Suchanallianceneedsanideologicalvehicle,and‘Buen Vivir’isitsexpression.

Thepotentialroleofcommons-basedreciprocitylicensestoprotecttraditionalknowledge

Reciprocity-basedlicensesfortraditionalknowledge

Today,indigenousandothercommunitieswhowanttosharetheirknowledgeforthegoodoftherestofhumanityareinsomewhatofamoralbind.IftheysharetheirknowledgewithoutanyIPprotection,oriftheysharetheirknowledgeusingtheclassicopenlicensesfromthefreesoftwaremovement,suchastheGeneralPublicLicense,theyintrinsicallyallowanyoutsideforces,includethemonopolisticmultinationals,toprofitfromtheirknowledgeandtraditions,withoutanyguaranteedreciprocity,andtheymaynotbenefitthemselvesfromthewealththatisgeneratedfromtheircontributions.Ontheotherhand,iftheyusealicenseliketheCreative-CommonsNon-Commerciallicense,theyallowsharing,andthespreadingofbenefitsthroughthesharedknowledge,butalsoreducethepotentialforeconomicdevelopmentbasedonthatknowledge.Finally,notsharingtheknowledgeatall,wouldpreventtherestofhumanityfrombenefittingfrompotentialnewmedicinesthatcouldsavemillionsofhumanlives.

Itisthereforeimportanttointroduceintothedebatethepossibilityofreciprocity-basedopenlicenses.Let’sfirstsummarizetheissueasithasevolvedintheeconomiesbasedonfreesoftware,opendesignandopenhardware.ThesefieldsaredominatedbyfullyopenlicensessuchastheGPL,whichallowanyonetousethecode,butobligesthosethatmodifythecode,toaddittothecommonpool,sothatallmaybenefitfromit.Whilethishadledtoanexponentialgrowthoffreeandopensourcesoftware,ithasalsosubsumedthis

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newmodelofopen,commons-basedpeerproductiontoaneconomicdevelopmentthatisdominatedbylargecompanies.Hence,themodeofpeerproductionisnotautonomousandnotcapableofself-reproduction,sincecommons-contributorsareobligedtoworkaslaborforcapital.Hence,wehavetheparadoxthatlicenseswhichallowforfullsharing,inpracticepromotetheaccumulationofcapital.

Intheculturalsphere,oneoftheanswersforthishasbeentheinventionanduseoftheCreativeCommonsNon-CommercialLicense.Thesetypeoflicensesallowanyonetouseandreproducetheculturalproduct,ontheconditionthatnocommercialprofitisintentedandrealized.Thissolutionraisestwoissues.Oneisthatsuchalicensedoesnotcreatearealcommons,butonlyascaleofsharingthatisdeterminedbytheproduceroftheculturalproduct;inotherwords,thereisnocommoncreationofacommonpool.Thesecondisthatitprohibitsfurthereconomicdevelopmentbasedonthatprotectedwork.Isthereanalternativetothisconundrum?

DmytriKleinerhasproposedaPeerProductionLicense,whichhasalreadybeendiscussedbyopenagriculturalmachiningcommunitiessuchasAdabioAutoconstructioninFrance.ThePPLbasicallyallowsworker-ownedandcommons-contributingentitiestofreelyusethecommonpoolofknowledge,code,anddesign,butdemandsalicensefeefromfor-profitcompaniesthatwanttousethesamecommonpoolfortherealizationofprivateprofit.Hence,severaladvantages.

Oneisastreamofincomefromtheprivatesectorcompaniesindirectionofthecommons;thesecondisthateconomicdevelopmentisnotprohibited,butsimplyconditionedonreciprocity;finally,thereistheaddedpossiblitythatthoseentitiesthatsignontothelicenseandthecommonpoolsthatitprotects,couldcreateapowerfulentrepreneurialcoalitionbasedonethicalprinciples.WhiletheprecisewordingofthepresentPPLmaynotbeappropriate‘asis’fortraditionalandindigenouscommunities,itopensupthepossibilitytocreateadaptedreciprocity-basedopenlicensesfortraditionalknowledge.Thiswouldofferseveraladvantages:

1)thetraditionalcommunitieswouldbewillingtoshareandthustheknowledgewouldbenefithumanityasawhole

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2)itwouldalloweconomicdevelopmentbasedonthatknowledge

3)thecontractedreciprocitywouldbenefitandprofittothetraditionalcommunities

4)membersoftraditionalcommunitiescouldthemselvebecomeactiveinthesolidarityeconomythroughethicalmarketentitiesthatarebasedontheuseofsuchlicenses

5)traditionalcommunitiesandtheirownethicalmarketentitiescoulduniteinentrepreneurialcoalitionsusingthesamecommonpools

6)thesetraditionalcommunitiescouldunitewithethicalmarketentitiesactiveinotherpartsoftheworld,confidentinthecommonvaluesandprinciplesthatareenshrinedinthereciprocity-basedopenlicenses

Discussion:GenderAspects

Thereisaremarkablestructuralsimilaritybetweentheroleofwomeninthedomestic‘contributory’sectorandthestructuralsituationofpeerproduction(asareallyexistingsocialknowledgeeconomy)inthedominanteconomy.Womencontributemorethanmalesforthewell-beingofthefamilycommons,andthisworkismostly(nearlyalways)un-remunerated.Contributorstothecommonsalsooftenvolunteertheircontributionsforthecommons.Ifwomenwanttoinsuretheirownself-reproductionandamoreequalplaceinthefamily,theymustfindworkinthecapital-labornexus,asmustpeerproducersinthesocialknowledgeeconomy.Neitherthedomesticcareeconomynortheproductionofsocialknowledgecurrentlyallowfortheself-reproductionoftheirowners.

Thoughmanystructuralconstraintsforfamilyequality(equalitywithinthefamily)havebeenremoved,itisveryoftentheculturalconstraintsthatdeterminethatwomenareproducingmorehomeworkthantheirmalepartners.Similarly,inthepeerproductioneconomy,thoughitisstructurallyopenforalltoparticipate,itismostoftenmale-dominatedandthesemale-dominatedculturescreatenotjustinertiabutsometimesrealimpedimentsforfemaleparticipation.Thisshowsthatthetransition

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toasocialknowledgeeconomymustbeaccompaniedbystrongpoliciesthatsolvethestructuralconditionsofwomeninsocietyandtheeconomy.Andwithinthealreadyexistingcommunitiesthatproducesocialknowledge,theforcesthatstriveforgenderequalitymustbesupported,andthestructuralandculturalelementsthatmaintaingenderinequalitymustbetackled.Itisnotenoughforatransitionprojecttosimpleenableparticipationinsocialknowledgecreationanduse,itmustpromotetheequipotentialparticipationofallcitizens,andcreatetheconditionsforit.Afailuretodothismayleadtotheoppositeeffect,i.e.thecreationoffurtherinequalitiesduetothenon-participationofwomeninthesocialknowledgeeconomy.

IntroducingthenewconfigurationbetweenState,CivilSocietyandtheMarket

Whatcanwelearnfromthealreadyexistingsocialknowledgeeconomy

Thesocialknowledgeeconomyisnotanutopia,orjustaprojectforthefuture.Itisrootedinanalreadyexistingsocialandeconomicpractice,thatofcommons-orientedpeerproduction,whichisalreadyproducingcommonsofknowledge,code,anddesign,andithasproducedrealeconomieslikethefreesoftwareeconomy,theopenhardwareeconomy,thefreecultureeconomy,etc…Initsmostbroadinterpretation,concerningalltheeconomicactivitiesthatareemergingaroundopenandsharedknowledge,itmayhavereachedalready1/6thofGDPintheUSA,employing17millionworkers,accordingtotheFairUseEconomyreport.Alotisknownaboutthemicro-economicstructuresofthisemergingeconomicmodel,whichwecansummarizeasfollows:

atthecoreofthisnewvaluemodelarecontributorycommunities,consistingofbothpaidandunpaidlabor,whicharecreatingcommonpoolsofknowledge,code,anddesign.Thesecontributionsareenabledbycollaborativeinfrastructuresofproduction,andasupportivelegalandinstitutionalinfrastructure,whichenablesandempowersthecollaborativepractices.

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theseinfrastructuresofcooperation,i.e.technical,organizational,andlegalinfrastructures,areveryoftenenabled,certainlyintheworldoffreesoftwarecommons,bydemocratically-runFoundations,sometimescalledFLOSSFoundations,ormoregenerically,‘for-benefitassociations’,whichmaycreatecodedepositories,protectagainstinfringementsoftheopenandsharinglicenses,organizefundraisingdrivesfortheinfrastructure,andorganizeknowledgesharingthroughlocal,nationalandinternationalconferences.Theyareanenablingandprotectivemechanism.

finally,thesuccessfulprojectscreateaneconomyaroundthecommonspools,basedonthecreationofaddedvalueproductsandservicesthatarebasedonthecommonpools,butalsoaddtoit.Thisisdonebyentrepreneursandbusinessesthatoperateonthemarketplace,andaremostoftenfor-profitenterprises,creatinga‘entrepreneurialcoalition’aroundthecommonpoolsandthecommunityofcontributors.Theyhirethedevelopersanddesignersasworkers,createlivelihoodsforthem,andalsosupportthetechnicalandorganizationalinfrastructure,includingalsothefundingoftheFoundations.

Onthebasisofthesegenericmicro-economicexperiencesitispossibletodeduceadaptedmacro-economicstructuresaswell,whichwouldconsistofacivilsocietythatconsistsmainlyofcommunitiesofcontributors,creatingshareablecommons;ofanewpartnerstateform,whichenablesandempowerssocialproductiongenerallyandcreatesandprotectsthenecessarycivicinfrastructures;andanentrepreneurialcoalitionwhichconductscommerceandcreatelivelihoods.

Thenewconfiguration

Intheoldneoliberalvision,valueiscreatedintheprivatesectorbyworkersmobilizedbycapital;thestatebecomesamarketstateprotectingtheprivilegedinterestsofpropertyowners;andcivilsocietyisaderivativerestcategory,asisevidencedintheuseofourlanguage(non-profits,non-governmental).Nevertheless,thecombinationoflaborandcivicmovementshaspartiallysucceededinsocializingthemarket,achievementswhicharenowunderthreat.In

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thenewvisionofcognitivecapitalism,thenetworkedsocialcooperationconsistsofmostlyunpaidactivitiesthatcanbecapturedandfinancializedbyproprietary‘network’platforms.Socialmediaplatformsalmostexclusivelycapturethevalueofthesocialexchangeoftheirmembers,anddistributedlaborsuchascrowdsourcingmoreoftenthannotreducetheaverageincomeoftheproducers.Inotherwords,the‘netarchical’versionofnetworkedproductioncreatesapermanentprecariatandreinforcestheneoliberaltrends.

Inthecontraryvisionofanopen-commonsbasedknowledgeeconomyandsociety,valueiscreatedbycitizens,paidorvoluntary,whichcreateopenandcommonpoolsofknowledge,co-producedandenabledbyaPartnerState,whichcreatestherightconditionsforsuchopenknowledgetoemerge;andpreferentiallyethicalentrepreneurialcoalitionswhichcreatemarketvalueandservicesontopofthecommons,whichtheyareco-producingaswell.Theidealvisionofanopen-commonsbasedknowledgeeconomyisoneinwhichthe‘peerproducers’orcommoners(thelaborformofthenetworkedknowledgesociety),notonlyco-createthecommonpoolsfromwhichallsocietycanbenefit,butalsocreatetheirownlivelihoodsthroughethicalenterpriseandtherebyinsurenotonlytheirownsocialreproductionbutalsothatthesurplusvaluestayswithinthecommons-cooperativesphere.Inthisvision,thesocialsolidarityeconomyisnotaparallelstreamofeconomicproduction,butthehyper-productiveandhyper-cooperativecoreoftheneweconomicmodel.

Thusinthenewvision,civilsocietycanbeseenasconsistingasaseriesofproductiveciviccommons,commonpoolsofknowledge,codeanddesign;themarketconsistsofpreferentiallyactorsofthecooperative,socialandsolidarityeconomywhichintegratethecommongoodintheirorganizationalstructures,andwhoselabor-contributingmembersco-producethecommonswiththeciviccontributors.Finally,inthisvision,thePartnerStateenablesandempowerssuchsocialcooperation,andcreatesthenecessarycivicandphysicalinfrastructuresforthisfloweringofinnovationandcivicandeconomicactivitytooccur.

ThePartnerStateisnotaweakneoliberalstate,whichstripspublic

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authorityofitssocialfunctions,andretainsthemarketstateandrepressivefunctions,asintheneoliberalmodel;itisalsonottheWelfareState,whichorganizeseverythingforitscitizens;butitisastatethatbuildsonthewelfarestatemodel,butatthesametimecreatesthenecessaryphysicalandcivicinfrastructuresforsocialautonomy,andforacivicproductionmodelthatcombinescivicimmaterialcommonsandcooperativesocialsolidarityenterprise.Theethicaleconomyandmarket,isnotaweakandparalleleconomythatspecializesinthelesscompetitivesectorsoftheeconomy;onthecontrary,theethicalmarketisthecoreproductivesectoroftheeconomy,buildingstrongenterprisesaroundcompetitiveknowledgebases.Itishowever,attheserviceofcivilsocietyandco-constructtheopenknowledgecommonsonwhichsocietyandcommercedepends.

Whyisthisapost-capitalistscenario?

Capitalist-drivensocietiesproduceforexchangevalue,whichmaybeuseful,ornot;andcontinuouslystrivestocreatenewsocialdesiresanddemands.Bywayofcontrast,theopen-commonsbasedknowledgeeconomyconsistsofaproductivecivilsocietyofcontributors,citizencontributorswhocontinuouslycontributetothecommonsoftheirchoicebasedonusevaluemotivations;itisaroundtheseuse-valuecommonsthatanethicalmarketandeconomyfindsitsplace,andcreatesaddedvalueforthemarket.Thecommonsiscontinuouslyco-producedbybothcitizencontributorsandpaidethicallaborfromthecooperative/socialsector.Inthisscenario,theprimarydriveristhesphereofabundanceofknowledgeavailableforall,whichisnotamarketdrivenbysupplyanddemanddynamics;butaroundtheimmaterialabundanceofnon-rivalorevenanti-rivalgoods,isdeployedamarketofcooperativesandsocialsolidarityplayerswhichaddandsellscarceresourcesonthemarketplace.

Inthissamescenario,thestateisnolongeraneoliberalmarket-stateattheserviceofpropertyowners,butisattheserviceofcivilsociety,theircommons,andthesphereoftheethicaleconomy.Itisnotattheserviceoftheprivatecapitalaccumulationofpropertyowners,butisattheserviceofthevalueaccumulationandequitablevaluedistributiontakingplaceinthecommons-cooperativesector.

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Itisattheserviceoftheopen-commonsofitscitizens,andthegoodknowledgetheyneedforthis.Insteadofafocusonpublic-privatepartnerships,whichexcludesparticipationfromcivilsociety;acommons-supportingpartnerstatewilllookatthedevelopmentofpublic-socialorpublic-commonspartnerships.WhereappropriatethePartnerStatelooksatthepossiblecommonificationofpublicservices.

Forexample,followingthemodelofQuebecandNorthernItalyincreatingSolidarityCooperativesforSocialCare,inwhichthestateenablesandregulatesthedirectprovisionofcarebymulti-stakeholdergovernedcivilsocietybasedorganizations.Itisverylikelythatoncethestateundertakesthesupportofacommons-basedcivicandethicaleconomyinthesphereofknowledge,thatitwillalsolookatthedevelopmentofinstitutionalcommonsinthephysicalsphere.Forexample,developingcommons-basedhousingdevelopmentpolicies,whichkeepsocialhousingoutsideofthespeculativesphere.

Asocietyandstatewhichdesirestodevelopacommonsintheimmaterialsphereofknowledge,willalsolookatexpandingthecommonssphereinotherspheresofhumanactivity.Anexamplemayshowwhythismaybesometimesnecessary.Inthesphereoffreesoftwareproduction,nearlyallfreesoftwareknowledgecommunitieshavetheirownfor-benefitassociationwhichenablesthecooperation,protectsthelicenses,etc…Thisismostlylikelybecauseengagementrequiresknowledgeandaccesstonetworks,whichhavebeenlargelysocializedinoursocieties.Butopenhardwaredevelopershavenotdevelopedsuchassociations,andaremoredependentonthecompaniessellinghardware.Thisisbecauseopenhardwarerequiressubstantialmaterialresourceswhichneedtobepurchasedprivately,whichfavorstheownersofcapitalandweakenstheproductivecommunitythatcontributestothecommons.Insuchascenario,theideathatopenhardwaredeveloperscouldmutualizetheirmeansofproduction,wouldre-establishmorebalancebetweendevelopersandcompanyowners.Ourillustrationalsomentionsthecommons-orientedownershipandgovernanceformswhichcanassistcitizensinhavingmorecontrolovercrucialinfrastructuressuchaslandandhousing.

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Discussion:Theroleofthecapitalistsector

Whatistheroleofthecapitalistsectorinsuchascenario?

Thefirstkeyissuehereisthecreationofalevelplayingfieldbetweenthesocialsolidaritysectorandtheprivatesector.Whereasthesocialsolidarityeconomyvoluntarilyintegratesthecommongoodinitsstatutesandoperations,andisasitwere‘naturallycommons-friendly’,theprivatecapitalsectorisregulatedsothatitsdenialofsocialandenvironmentalexternalitiesismitigated.ThePartnerStateencouragestransitionsfromextractivetogenerativeownershipmodels,whiletheassociationofprivatecompanieswiththecommonswillassisttheminadaptingtothenewemergingmodelsofco-creationandco-designofvaluewiththecommoners.Hyper-exploitationofdistributedlaborwillbemitigatedthroughnewsolidaritymechanisms.

Asthemutualadaptationbetweenthecommonssector,thecooperativesectorandthecapitalistsectorproceeds,theremainingcapitalistsectorshouldbeincreasinglysocializedinthenewpractices,aswellasownershipandgovernanceforms.Theaimistocreatealevelplayingfield,inwhichhyper-exploitationofsocialvaluebecomesagradualimpossibility,andinwhichextractiverent-takingbecomesequallyimpossibleandcounter-productivethroughtheexistenceofwell-protectedopencommons.

Thesecondkeyissueconcernstheself-reproductioncapabilitiesofthecommonscontributors.Underthedominanceofneoliberal,cognitiveandnetarchicalcapitalistforms,commonersarenotabletocreatelivelihoodsintheproductionofopenknowledgecommons,andundermostopenlicenses,privatecompaniesarefreetouseandexploitthecommonknowledgewithoutsecurereturn.Thisobligesmanyandmostcommonerstoworkforprivatecapital.Whatneedstobeachievedisanewcompactbetweenthecommonsandtheprivatecompanies,thatinsuresthefairdistributionofvalue,i.e.aflowofvaluemustoccurfromtheprivatecompaniestothecommonsandthecommonersfromwhomthevalueisextracted.Modelsmustbedevelopedthatallowprivatelyownedcompaniestobecomefairpartnersofthecommons.

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Intheend,noprivately-ownedcompany,usingitsownresearchstaffandproprietaryIP,willbeabletocompeteagainstopenecosystemsthatcandrawonglobalknowledgeproductionandsharing;thisprocessoffairadaptationmustbeencouragedandaccompaniedbybothmeasuresfromthecommonsandtheirassociatedethicalenterprises,andbythePartnerState,inacontextinwhichallplayerscanbenefitfromthecommons.Privatecapitalmustrecognize,andmustbemadetorecognize,thatthethatthevaluebeingcapturedisoverwhelminglyderivedfromthebenefitsofsocialcooperationinknowledgecreation:justastheyhadtorecognizethenecessityforbetterandfairpayforlabor,theymustrecognizefairpayforcommonsproduction.

AdescriptionofthenewtriarchyofthePartnerState,theEthicalEconomyandaCommons-basedCivilSociety

Theconceptofthepartnerstateandthecommonificationofpublicservices

ThusisborntheconceptofthePartnerState,whichisnotopposedtothewelfarestatemodel,but‘transcendsandincludes’it.ThePartnerStateisthestateformwhichenablesandempowersthesocialproductionofknowledge,livelihoodsandwell-being,byprotectingandenablingthecontinuationandexpansionofcommons.ThePartnerStateistheinstitutionofthecollectivitywhichcreatesandsustainsthecivicinfrastructuresandeducationallevels,andwhosegovernanceisbasedonparticipationandco-productionofpublicservicesandcollectivedecision-making.ThePartnerStateretainsthesolidarityfunctionsofthewelfarestate,butde-bureaucratizesthedeliveryofitsservicestothecitizen.Itabandonsitpaternalisticvisionofcitizensthatarepassiverecipientsofitsservices.

ThePartnerStateisthereforebasedonwide-spreadparticipationindecision-making,butalsointhedeliveryofitsservices.Publicservicesareco-createdandco-producedwiththefullparticipationofthecitizens.Themeanstothisendisthe‘commonificationofpublicservices’throughpublic-commonspartnerships.Public-

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privatepartnershipsdonotonlyaddtothecostofpublicservices,andcreatewidespreaddistrustandneedforcontroltocounterbalancetheprofit-interestsofthepartners,butareessentiallyanti-democraticastheyleaveouttheparticipationofthecitizenry.Inacommentary,SilkeHelfrichdefinesthegeneralrelationshipofthestatewiththecommonsassuch:

“Formetheroleofthestateisatleastfourfold:notonly-tostopenclosures,buttotriggertheproduction/constructionofnewcommonsby-(co-)managementofcomplexresourcesystemswhicharenotlimitedtolocalboundariesorspecificcommunities(asmanagerandpartner)-surveyofrules(charters)tocareforthecommons(mediatororjudge)-kickingoforprovidingincentivesforcommonersgoverningtheircommons-herethepointistodesignintelligentruleswhichautomaticallyprotectthecommons,liketheGPLdoes(facilitator)”.

DavidBollieraddsthat:

“TheStatealreadyformallydelegatessomeofitspowerstocorporationsbygrantingthemcorporatecharters,ostensiblytoservecertainpublicpurposes.Whycan’tthestatemakesimilardelegationsofauthoritytocommons-basedinstitutions,whichwouldalso(intheirowndistinctways)servepublicpurposes?Ifthekeyproblemofourtimeisthemarket/stateduopoly,thenweneedtoinsistthatthestateauthorizetheself-organizingandlegalrecognitionofcommons-basedinstitutionsalso.JamesQuilliganhascalledforcommonerstocreatetheirown“socialcharters,”butthelegalstandingofsuchthingsremainssomewhatunclear.Thepublicvalueofstate-charteredcommons-basedinstitutionsisthattheywouldhelp1)limitthecreationofnegativeexternalitiesthatgetdisplacedontoothers(ascorporationsroutinelydo);2)declarecertainresourcestobeinalienableandlinkedtocommunitiesaspartoftheiridentity;3)assuremorecaring,conscientiousandeffectivestewardshipandoversightofresourcesthanthebureaucraticstateiscapableofproviding;and4)helpcommonersinternalizeadifferentsetofstewardshipvalues,ethics,socialpracticesandlong-termcommitmentsthanthemarketencourages.”(email,July2012)

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ButitisTommasoFattori,aleadingactivistoftheItalianWaterCommonsmovement,whichhasthemostdevelopedconceptofthecommonificationofpublicservices:

“ThefieldofCommonscanbeforthemostpartidentifiedwithapublicbutnot-statearena,inwhichtheactionsoftheindividualswhocollectivelytakecareof,produceandsharetheCommonsaredecisiveandfundamental.Inthissense,Commonsandcommoningcanbecomeameansfortransformingpublicsectorandpublicservices(oftenbureaucracy-boundandusedtopursuetheprivateinterestsoflobbygroups):ameansfortheircommonification(orcommonalization).Indeed,therearemanypossiblevirtuouscrossoversbetweenthetraditionalpublicrealmandtherealmofCommons.Commonificationgoesbeyondthesimplede-privatizationofthepublicrealm:Commonificationbasicallyconsistsofitsdemocratization,bringingbackelementsofdirectself-governmentandself-managing,bytheresidentsthemselves,ofgoodsandservicesofgeneralinterest(orparticipatorymanagementwithinrevitalizedpublicbodies).Commonificationisaprocessinwhichtheinhabitantsofaterritoryregaincapabilityandpowertomakedecisions,toorientatechoices,rulesandpriorities,re-appropriatingthemselvesoftheverypossibilityofgoverningandmanaginggoodsandservicesinaparticipatorymanner:itisthisfirst-personactivitywhichchangescitizensintocommoners.

Generally,thereareaseriesofcircumstances(includinglivingspaceandtimeschedules,jobprecariousnessandotherdifficultworkconditions,theurbanizationoflandandthecomplexityofinfrastructures)whichdonotphysicallyallowtheinhabitantsofalargemetropolistocompletelyself-managefundamentalservicessuchaswaterutilitiesorpublictransport,bypassingtheMunicipalitiesandthepublicbodies(ormanagingwithoutpublicfundstofinancemajorinfrastructureworks):itisontheotherhandpossibletoincludeelementsofself-governmentandcommoninginthedistinctstagesofgeneralorientation,planning,scheduling,managementandmonitoringoftheservices.

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Atthesametimeitisnecessarytoalsogivebackpublicserviceworkersanactiveroleinco-management.Whichmeansgoingtheotherwaydowntheroadascomparedtotheprivatizationofthatwhichis“public”.ButtherearealsootheroverlapspossiblebetweentheideaofpublicandthatofCommons,apartfromthenecessarycreationoflegislativetoolswhichcanprotectandencourageCommonsandcommoning.SeveralformsofPublic-Commonspartnershipcanbedeveloped,wheretheroleofstateisre-aligned,fromitscurrentsupportandsubsidizingofprivatefor-profitcompanies,towardssupportingcommoningandthecreationofcommonvalue.Thiscanbeachievedthroughtaxexemptions,subsidiesandempowermentofsharingandcommoningactivities,butalso,forexample,byallocatingpublicandstate-ownedgoodstocommonandsharedusagethankstoprojectswhichseepublicinstitutionsandcommonersworkingtogether.Thisisaroadwhichcouldbethebeginningofageneraltransformationoftheroleofthestateandoflocalauthoritiesintopartnerstate,“namelypublicauthoritieswhichcreatetherightenvironmentandsupportinfrastructuresothatcitizenscanpeerproducevaluefromwhichthewholeofsocietybenefits”.

TommasoFattorihasofferedanin-depthunderstandingofthepreciserelationshipbetweenthenewstateformandthecommons:

“Tounderstandinwhatsenseandunderwhatconditionspublicservicescanbeconsideredcommons,itisnecessarytooffersomebriefnotesonwhatismeantbypublicserviceandwhatbycommons.Inbothcasesitisdifficulttobeconcise,becauseofthebreadthofthedebateontheareasandtheissues.

PublicServices:Asiswellknown,inmostlegalsystems,thelawsdonotprovideanydefinitionofwhatismeantbytheconcept‘publicservice’.Inshort,inthedoctrinalreconstruction,therearetwomainpositions:thesubjectivetheoryfocusesattentiononthepublicnatureofthesubjectsupplyingtheservice,whereastheobjectivetheoryfocusesattentiononthepublicinterestwhichdistinguishestheactivityperformed.Accordingtothesubjectivetheory,theelementsnecessarytoidentifypublicservicearethedirectorindirect

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responsibilityoftheStateoranotherpublicbodyfortheservice,anditssupplyforthebenefitofitscitizens.

Ontheotherhand,fortheobjectivetheory,thenecessaryelementisthattheservicebeprovidedtothecollectivityandplacepublicinterestatitsheart.TheEUhoweverpreferstoducktheissueandspeakof“servicesofgeneralinterest”:services(bothmarketandnon-market)whichareconsideredofcentralinterestforthecollectivityandthatforthisreasonmustbesubjectedto“specificobligationsofpublicservice”.Inthesepages,bypublicserviceswemeantheservicesofgeneralinterest,thatis,thatplethoraoffundamentalserviceswhichwereonceanintegralpartofwelfareservicesbutnowadayshavemostlybeenprivatized,followingpoliticaldecisions,oraresuppliedbypublicbodiesbutrunalongthelinesofprivatizedcompanies.Theseservicesinclude,althoughthisisnotanexhaustivelist,healthservices,schoolsanduniversities,powersupply,transportandotherlocalutilitiessuchasthewaterorwasteservices.

Commons:Thedefinitionofwhatismeantbycommons,andwhatcommoningis,ismorecomplex,asthisisanareainwhichdifferentapproachesandparadigmsclash.Inverygeneralterms,commonsiseverythingweshare;inparticulargiftsofnatureandcreationsofsocietythatbelongtoallofusequally,andshouldbepreservedforfuturegenerations:materialorimmaterial,rivalornon-rival,naturalorartificialresourcesthateludetheconceptofexclusiveuseandbuildsocialbonds.Inadditiontosharedresources,thereareanothertwofundamentalbuildingblocksofthecommons:commonersandcommoning.Commonersareallthemembersofacommunity,orevenlooselyconnectedgroupsofpeople,whostewardandcareforthesharedresources,orproducecommonresources,adoptingaformofself-governmentbasedontheircapacitytogivethemselvesrules(andincentivesandsanctionstoensuretheyarerespected,aswellasmechanismsformonitoringandresolvingconflicts),calledcommoning.Commoningisaparticipatoryandinclusiveformofdecision-makingandagovernancesystemforsharing,producingandreproducingcommonsintheinterestofpresentandfuturegenerationsand

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intheinterestoftheecosystemitself,wherenaturalcommonsareconcerned.Stillingeneralterms,althoughalmostallgoodsandresourcescanpotentiallybecomeobjectsofsharing,afterachoiceanddecisionbypeople,andthusbecome“sharedresources”or“commons”,itishoweverprobablethatmostofhumanitywouldagreeonanucleusofresourceswhich,atleastinprinciple,“cannotnotbecommons”,onpainofdenyinglifeitselfandthepossibilityoffreeindividualandcollectivedevelopment:primary,fundamental,naturalorsocialresources,whichrangefromwatertoknowledge.Afuturewithoutcouch-surfing,whereallbedsaregivenamonetaryvalueandnotshared,iscertainlylessdesirablethanafuturewithcouch-surfing;butafuturewithoutaccesstowaterforallisunacceptable.

Theseprimarycommonsmustnotallowdiscriminationinaccesstothemaccordingtoindividualwealth,re-introducingtheelementofequalityandfairness,aswellasarelationshipofcare—ratherthanoneofdominationorsubjection—betweenhumanityandtherestofnatureofwhichitisapart.TheseareresourceswhichdonotbelongtoandwhicharenotatthedisposalofgovernmentsortheState-as-person,becausetheybelongtothecollectivityandaboveall,tofuturegenerations,whocannotbeexpropriatedoftheirrights.Distributedparticipatorymanagementandself-government,inclusionandcollectiveenjoyment,noindividualexclusiverights,prevalenceofusevalueoverexchangevalue,meetingofprimaryanddiffuseneeds:commons,inthisunderstanding,meansallthesethings.”[12].

Oneofthemechanismsforthedeliveryofcommonifiedpublicservicesarethroughcontractsbetweenthestateasfundingandqualitycontrolmechanism,and“Solidaritycooperatives”,whicharemulti-stakeholdercoops,bringingtogetherallpartiesinvolvedinaparticularendeavor―workers,consumers,producersandmembersofthelargercommunity―inademocraticstructureofownershipandcontrol.Thisnewsystemofdeliveryhasbeenpioneeredinthefieldofsocialcare,forhealthandsupportservicesforparticularpopulationssuchastheelderly,thephysicallyhandicappedetc…andisparticularlystronginnorthernItaly(Emilia-Romagna,the

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regionaroundBologna),aswellasinQuebec.TheexamplesaredescribedinthepolicyreportfromJohnRestakis.

Toconclude:Inamaturesocialknowledgeeconomy,thestatewillstillexist,butwillhavearadicallydifferentnature.Muchofitsfunctionswillhavebeentakenoverbycommonsinstitutions,butsincetheseinstitutionscareprimarilyabouttheirowncommons,andnotthegeneralcommongood,wewillstillneedpublicauthoritiesthataretheguarantorofthesystemasawhole,andcanregulatethevariouscommons,andprotectthecommonersagainstpossibleabuses.Soinourscenario,thestatedoesnotdisappear,butistransformed,thoughitmaygreatlydiminishinscope,andwithitsremainingfunctionsthoroughlydemocratizedandbasedoncitizenparticipation.Inourvision,itiscivil-societybasedpeerproduction,throughtheCommons,whichistheguarantorofvaluecreationbytheprivatesector,andtheroleofthestate,asPartnerState,istoenableandempowerthecreationofcommonvalue.Thenewpeertopeerstatethen,thoughsomemayseethatasacontradictio in terminis,isastatewhichissubsumedundertheCommons,justasitisnowundertheprivatesector.

TheEthicalEconomy

Whatexactlyisthenatureandtheroleoftheethicaleconomyinthesocialknowledgeeconomy?Firstofall,theethicaleconomy“realizes”thevaluethatiscreatedbythe‘commoners’inthecommonpools,bycreatingaddedvaluefortheethicalmarketsector.Therealizedsurplusgoesdirectlytotheworkerswhoarealsothecontributorstothecommons,therebyrealizingtheirself-reproduction,independentlyoftheclassiccapitalaccumulationeconomy.Anew‘cooperativeaccumulation’processistherebycreatedthatmediatesbetweenthecommonsandtheclassicalcapitalsector,anddirectlyservethecommonsandthecommoners.Theethicaleconomycanrealizeprofits,buttherealizedprofitsserveapurpose,amission,atthedirectserviceofthecreationofusevalue.Itdoesn’tcoincidethereforetothecivicnonprofitsector,butisbettercalledaNot-For-Profitsector,sincetheprofitsaresubsumedtothesocialgoal.Thisisinessencewhythenewsectoriscalledanethicaleconomy,becausethegoalsarenottheaccumulationofprofit,butof‘benefits’.Soasynonymistotalkabouta‘for-benefit’

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sector.Theethicalcompanies,cantakeverydifferentform,or‘opencompanyformats’,withtheircommongoalbeingtocontributetothe‘commongood’generally,andtothecommonsspecifically.Theymaybealliedamongstthemselvesasentrepreneurialcoalitionsaroundcertainspecificcommonpools(butlikelywillusemorethanonecommons).ThedifferentlegalregimesmaybeB-Corporations,FairTradecompanies,socialentrepreneurs,worker’sorotherformofcooperatives…Oneofthekeyinnovationshasbeenthedevelopmentof‘SolidarityCooperatives’,whoseemergencehasbeendescribedelsewherebyJohnRestakis.SolidarityCoopsintegratethecommongoodintheirstatutes,andaremulti-stakeholdergoverned.Theethicaleconomymaybefocusedonre-localizedproductionforreasonsofsustainability,butitsworkerscooperategloballydirectedthroughtheopendesigncommunitiesthatareessentialfortheiroperations.Organizationally,theycanbegloballyorganizedthroughmodelslikesolidarityfranchising,or“Phyles”,i.e.throughglobalcommunity-supportiveormission-orientedethical‘transnational’forms.

Discussion:MaterialandImmaterialInfrastructuralRequirementsfortheEthicalEconomy

TheemergenceandstrengtheningoftheEthicalEconomyasacoreofthesocialknowledgesocietywillrequirebothmaterialandimmaterialinfrastructuraldevelopment.Thefirstisthedevelopmentofaseriesofalternative‘corporate’structures,whicharenotlinkedtotherealizationofprofitasaprimarygoal,butallowmarketentitiestooperateforsocialgoals,missions,purposes,etc…ThisisanareawhichwecallOpenCompanyFormats,andisashiftwhichisalreadywellunderwayinvariouscountries.Thesecondisthesupporttocreateviable“OpenBusinessModels”.Thesearemodelsforfinancialresilienceandsustainabilitythataregearedtowardstherecognitionanddevelopment,andnotthesuppression,ofsocializedknowledgepools.Thethirdisthedevelopmentofdistributedfinance,bothcrowdfundingdirectlyfromcitizens,‘cloudfunding’directedtoethicalfinancepartners,andstateorpublicfinancing[13].

Thekeyissueisthatwithoutthesuper-profitsrealizedthrough

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IntellectualPropertyrents,privateriskcapitalwillbemuchlesskeentoinvestinpatent-freeinnovations,andanalternativefinancialsystemneedstobebuiltandsupportedthroughpublicpolicyframeworks.Thus,anewlegal,pro-sharing,pro-socialknowledge,infrastructureneedstobedevelopedaswell,onewhichsupportstheethicaleconomyanditslogic,andpromotesandeasesthemutualizationofknowledgeandotherimmaterialresources,andofthematerialinfrastructuresofproductionaswell.Alegalinfrastructureisneededtopromoteanddevelopformsof‘sharing’and‘cooperative’economics.Atechnicalinfrastructurewillbeneeded,notonlyagenericandopeninternetinfrastructure,butthesupportforthedevelopmentofcollaborativeplatformsthatareappropriateforthedifferentindustrialandeconomicsectors.

Examplesarethedepositoriesofdesignobjectsthatareneededineachsector;andtheinfrastructurefortheinterconnectionofsmartobjects,theso-called‘InternetofThings’.Aninfrastructurewillbeneededforbothopenanddistributedmanufacturing,andfordistributedproductionofrenewableenergy,closetotheplaceofneed.Newformsofopenvalueaccountingwillneedtobedevelopedinordertorecognizethenewformsofvaluecreationinacommons-basedcontributoryeconomy.Inthiscontext,weseetheroleofthePartnerStateasbeingresponsibleforincubatingtheEthicalEconomythroughvarioussupportpolicies,whichmaytakethefollowinginstitutionalform:

TheInstituteforthePromotionandDefenseoftheCommons:thisisaninstitutewhichpromotestheknowledgeaboutthecommonsandtheirlegalandinfrastructuralforms,forexample,thepromotionandprotectionfortheuseofCommons-BasedLicenses,suchastheGPL,theCreativeCommons,etc…ThisInstitutesupportsthecreationofcommonpoolsofknowledge,codeanddesign,bothgenericallyandforspecificsectorsandregions.

TheInstitutefortheIncubationoftheEthicalEconomy,supportstheemergenceofeconomicpracticesaroundthecommonpoolsofknowledge.Ithelpsthecivicandethicalentrepreneurstocreatelivelihoodsaroundthesecommonpools.Itteachesentrepreneurialcommonerswhatthepossibilitiesare

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tocreateaddedvaluearoundthecommons,andwhatthelegal,commercialandtechnicalenablersare.Itpromotesthecreationofentrepreneurialcoalitionsinnewsectors,andsupportsestablishedethicaleconomyplayerstosolvecommonproblems.

TheTransitionIncome:beforecommonscancreatethrivingethicaleconomies,aperiodofcivilengagementandinvestmentisneeded,whichmaynotimmediatelyyieldlivelihoods.Thus,astructurecanbecreatedwhichcanmateriallysupportthecreatorsofnewcommonpoolstosustainthemselvesinsuchtransitionperiods.Thiswillbeavitalmechanismincombatingprecarityintheearlystagesofcommonscreation,beforetheentrepreneurialcoalitionscantakeuptheirroleinthenewcommonseconomiesinvarioussectors.

TheCommons-BasedCivilSociety

AcontributionfromJohnRestakis:

Initsbroadestandmostacceptedsense,civilsocietyisthesocialimpulsetofreeanddemocraticassociation,tothecreationofcommunity,andtotheoperationsofsociallife,whichincludespolitics.ThisisthesenseofcivilsocietythatisusedbywriterssuchasVaclavHavel.Civilsocietyisdistinguishedfromthestateasitisfromtheoperationsoftheprivatesector.Somewritersalsostressadistinctionfromthefamilyaswell.ForHavelandalonglineofwritersextendingbacktoAristotle,civilsocietyremainstheelementaryfactofhumanexistence.Itiswhatmakeshumanlifepossible.ForAristotleitwasboththemeansandtheendofhumanassociationasthepursuitofthegoodlife,whichisinessenceasociallife.Andinthissense,itistheinstitutionsthatarisefromcivilsociety(theschools,thevoluntaryassociations,thetradeunions,thecourts,thepoliticalparties,etc.)thatprovidetheindividualwiththemeanstorealizetheirownhumanityandbysodoingtoperfectthewholeofsocietyintheprocess.Thestateisanoutgrowthofthisimpulse.

AsThomasPainewrote:“Thegreatpartofthatorderwhichreignsamongmankindisnottheeffectofgovernment.Ithasits

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originsintheprinciplesofsocietyandthenaturalconstitutionofman.Itexistedpriortogovernment,andwouldexistiftheformalityofgovernmentwasabolished.Themutualdependenceandreciprocalinterestwhichmanhasuponman,andallthepartsofcivilizedcommunityuponeachother,createthatgreatchainofconnectionwhichholdsittogether.Infine,societyperformsforitselfalmosteverythingwhichisascribedtogovernment.”

AlexDeToqueville,visitingAmericainthelateseventeenfamouslyattributedthevitalityoftheyoungdemocracytotherichnessanddiversityofitsassociationallife.Withincivilsociety,ahugeportionofcivicactivitiesarecarriedoutbyorganizationscreatedtoprovidegoodsandservicesthroughcollaboration,bypeopleactingtogethertorealizemutualinterests.Theyconstitutethatsectorwhichiscomposedofnon-profitandvoluntaryorganizations,servicegroups,culturalorganizationssuchaschoralsocieties,charities,tradeunions,andcooperatives.Thiseconomicaspectwithincivilsocietyhasalsobeendescribedasthecivileconomy,thethirdsectororthesocialeconomy.Foralltheseconceptions–thecommons,civilsocietyandcivileconomy–thenotionofreciprocityisfundamental.

OnReciprocity

Reciprocityisthesocialmechanismthatmakesassociationallifepossible.Itisthefoundationofsociallife.Initselements,reciprocityisasystemofvoluntaryexchangebetweenindividualsbasedontheunderstandingthatthegivingofafavorbyonewillinfuturebereciprocatedeithertothegiverortosomeoneelse.Willingnesstoreciprocateisabasicsignalofthesociabilityofanindividual.Takentoanextreme,thecompleteunwillingnessofanindividualtoreciprocateistantamounttoseveringthebondsbetweenthemselvesandotherpeople.Reciprocityisthusasocialrelationthatcontainswithinitselfpotentemotionalandevenspiritualdimensions.Theseelementsaccountforanentirelydifferentsetofmotivationswithinindividualsthanbehaviorintheclassicalsenseof“maximizingone’sutility”asaconsumer.Reciprocityanimatesavastrange

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ofeconomicactivitiesthatrestonthesharingandreinforcementofattitudesandvaluesthatareinterpersonalandconstituteessentialbondsbetweentheindividualandthehumancommunity.

Whatisexchangedinreciprocaltransactionsarenotmerelyparticulargoods,servicesandfavors,butmorefundamentallytheexpressionofgoodwillandtheassurancethatoneispreparedtohelpothers.Itisthefoundationoftrust.Consequently,thepracticeofreciprocityhasprofoundsocialramificationsandentailsaclearmoralelement.Reciprocityisakeyforunderstandinghowtheinstitutionsofsocietywork.Butitisalsoaneconomicprinciplewithwhollydistinctcharacteristicsthatembodysocialasopposedtomerelycommercialattributes.Whenreciprocityfindseconomicexpressionintheexchangeofgoodsandservicestopeopleandcommunitiesitisthecivileconomythatresults.Itisinturn,akeyprincipleunderlyingtheformationanduseofcommons.

Civileconomyorganizationsarethosethatpursuetheirgoals,whethereconomicorsocial,onthebasisthatindividuals’contributionswillbereciprocatedandthebenefitsshared.Reciprocityandmutualityaretheeconomicandsocialprinciplethatdefineboththeactivitiesandtheaimsoftheseorganizations-whethertheyarecooperatives,voluntaryassociations,orconventionalnon-profits.Theirprimarypurposeisthepromotionofcollectivebenefit.Theirsocialproductisnotjusttheparticulargoodsorservicesthattheyproduce,buthumansolidarity-thepredispositionofpeopleinasocietytoworktogetheraroundmutualgoals.Anothernameforthisissocialcapital.And,asopposedtothecapitalistprincipleofcapitalcontroloverlabor,reciprocityisthemeansbywhichasocialinterest-whetherittakestheformoflabor,orcitizengroups,orconsumers–canexercisecontrolovercapital.

Asasubdivisionofcivilsociety,theuseofreciprocityforeconomicpurposesiswhatdistinguishesthecivilorsocialeconomyfromtheprivateandpublicsectors.Thereisnoquestionthatthelong-termsuccessandtheimplementationof

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asocialknowledgeeconomy,willrelyheavilyonthestrengthanddevelopmentofacivileconomythatisstrong,autonomous,democratic,innovative,andcapableofplayingthecentralrolethatisassignedtoit.Thecivileconomyisthesocialandeconomicspacethatmostreflectsthevaluesandprinciplesofthesocialistandcivicidealsofthegovernmentandthesourceofthosecivilinstitutionsthatwill,inthelongrun,defendandadvancethoseideals.Forthisreason,publicpolicyandlegislationmustserveasavitalpoliticalandlegalresourceforbuildingthevalues,skills,andinstitutionsthatenablethecivileconomytoflourishandtoprovidetheindispensablesocialfoundationsthatwillultimatelyservetotransformthepoliticaleconomyofthecountry.Inourview,progressivepublicpolicyandlegislationwithrespecttothecivileconomywillserveastheprimarymechanismforcreatinganewsocialcontractandsocialpraxisthatreflectsthecomplementaryaimsandpurposesofthestateontheonehandandthecollectivevaluesofcivilsocietyontheother.

Beyondthemarket,beyondplanning?

ThekeyroleofCommons-BasedReciprocityLicenses

Herewearemakingakeystrategicargumentaboutthepreciseinteractionbetweenthecommonsandthenewethicalmarketsectors,throughtheintermediationofanewtypeofcommonslicensethatsupportstheactualemergenceofareciprocity-basedethicaleconomy.Today,thelabor/p2p/commonsandothersocialchangemovementsareindeedfacedwithaparadox.Ontheonehand,wehavethere-emergenceofthecooperativemovementandworker-ownedenterprises,buttheysufferfromstructuralweaknesses.Cooperativeentitiesworkfortheirownmembers,arereluctanttoacceptnewcooperatorswhowouldshareexistingprofitsandbenefits,andarepractitionersofthesameproprietaryknowledgeandartificialscarcitiesastheircapitalistcounterparts.Whiletheyareinternallydemocratic,theyoftenparticipateinthesamedynamicsofcapitalistcompetitionwhich,overtime,tendtounderminetheirowncooperativevalues.

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Ontheotherhand,wehavetheemergentfieldofopenandcommons-orientedpeerproductioninfieldssuchasfreesoftware,opendesignandopenhardware.Whilethesedocreatecommonpoolsofknowledgeforthewholeofhumanity,theyareatthesametimedominatedbothbystart-upsandlargemultinationalenterprisesusingthosesamecommons.Ourproposedsolutionisanewconvergenceorsynthesis,an‘opencooperativism’thatcombinescommons-orientedopenpeerproductionmodelswithcommonownershipandgovernancemodels,suchasthoseofcooperativesandsolidarityeconomicmodels.Theseopencooperativeswoulduseamorerestrictiveformofsharing,whichwouldensureastrongerreciprocityintheethicalmarketcoalitionsthataregeneratedaroundthecommons.Theargumentsfortheopencooperativemodelarethelimitationsofthecurrentcooperativeform,sowhatfollowsistheargumentationforthenewlicense.

Today,wehaveaparadox.Themoreshareablethelicenseweuseinthepeerproductionoffreesoftwareoropenhardware,themorecapitalisticthepracticeoftheentrepreneurialcoalitionwhichformsaroundit.AnexampleofthisistheLinuxcommonsbecomingacorporatecommons,enrichingIBMandthelike.Itworks,inacertainway,andseemsacceptabletomostfreesoftwaredevelopers,butitisinsufficientforthecreationofatrueethicaleconomyaroundthecommons.Indeed,theGeneralPublicLicense(anditsvariants)allowanyonetouseandmodifythesoftwarecode(ordesign),aslongasthechangesarealsoputbackintothecommonpoolunderthesameconditionsforfurtherusers.Thisis,infact,technically‘communism’asdefinedbyMarx(fromeachaccordingtohisabilities,toeachaccordingtotheirneeds)butwhichthenparadoxicallyallowsmultinationalstousethefreesoftwarecodeforprofitandcapitalaccumulation.Theresultisthatwedohaveanaccumulationofimmaterialcommons,basedonopeninput,participatoryprocess,andcommons-orientedoutput,butthatitissubsumedtocapitalaccumulation.

Itisatpresentnotpossible,oratleastnoteasy,tohavesocialreproduction(i.e.livelihoods)withinthesphereofthecommons.Hence,thefreesoftwareandculturemovements,howeverimportanttheyareasnewsocialforcesandexpressionsofnew

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socialdemands,arealsoinessence‘liberal’.Thisisnotonlyacknowledgedbyitsleaders,suchasRichardStallman,butalsobyanthropologicalstudieslikethoseofGabrielaColeman.Withoutbeingterriblytongue-in-cheek,wecouldsaytheyareliberal-communistandcommunist-liberalmovements,whichcreatea‘communismofcapital’.Truetotheliberaltradition,theycareforthefreedoms,butnotforthefairnessoftheconditionsinwhichthesefreedomscanbeexercised.Isthereanalternative?Webelievethereis.Thiswouldbetoreplacenon-reciprocallicenses,i.e.thosewhichdonotdemanddirectreciprocityfromusers,toonebasedonreciprocity.Technically,wecouldcallitaswitchfrom‘communist’,to‘socialist’licenses’,socialismbeingtraditionallydefinedasthatintermediarystageinwhicheveryonereceivesaccordingtoeffort.ThisisthechoiceofthePeerProductionLicenseasdesignedandproposedbyDmytriKleiner;itisnottobeconfusedwiththeCreativeCommonsnon-commerciallicense,asthelogicisdifferent.ThelogicoftheCC-NCistoofferprotectiontoindividualswhoarereluctanttoshare,astheydonotwishacommercializationoftheirworkthatdoesnotrewardthemfortheirlabor.Thus,theCreativeCommons‘non-commercial’licensestopsfurthereconomicdevelopmentbasedonthisopenandsharedknowledge,andkeepsitentirelyinthenot-for-profitsphere.ThelogicofthePPListoallowcommercialization,butonthebasisofademandforreciprocity.Weseeitasaforerunnerofbetter-oratleastbroader–reciprocitylicenses,asthePPLisgearedexclusivelytoworker-ownedcooperatives.

ThePPLisdesignedtoenableandempoweracounter-hegemonicreciprocaleconomythatcombinescommonsthatareopentoallthatcontribute,whilechargingalicensefeetothefor-profitcompanieswhowanttousewithoutcontributing.Notthatmuchchangesforthemultinationals.Inpractice,theycanstillusethecodeiftheycontribute,asIBMdoeswithLinux,andforthosewhodon’t,theywouldpayalicensefee,apracticetheyareusedto.Itspracticaleffectwouldbetodirectastreamofincomefromcapitaltothecommons,butitsmaineffectwouldbeideological,or,ifyoulike,value-driven.TheentrepreneurialcoalitionslinkedaroundaPPLcommonswouldbeexplicitlyorientedtowardstheircontributionstothecommonsandthealternativevaluesystemthatthatrepresents.

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Fromthepointofviewofpeerproducersorcommoners,i.e.thecommunitiesofcontributorstothecommonpool,thiswouldallowthemtocreatetheirowncooperativeentitiesinwhichprofitwouldbesubsumedtothesocialgoalofsustainingthecommonsandthecommoners.Eventheparticipatingfor-profitcompanieswouldconsciouslycontributeunderanewlogic.Itlinksthecommonstoanentrepreneurialcoalitionofethicalmarketentities(coopsandothermodels),andkeepsthesurplusvalueentirelywithinthesphereofcommoners/cooperatorsinsteadofleakingouttothemultinationals.

Inotherwords,throughthisconvergence,orrather,combinationofacommonsmodelfortheabundantimmaterialresources,andareciprocity-basedmodelforthe‘scarce’materialresources,theissueoflivelihoodsandsocialreproductionwouldbesolved,andsurplusvalueiskeptinsidethecommonssphereitself.Itisthecooperativesthatwould,throughtheircooperativeaccumulation,fundtheproductionofimmaterialcommons,becausetheywouldpayandrewardthepeerproducersassociatedwiththem.Inthisway,peerproductionwouldmovefromaproto-modeofproduction,unabletoperpetuateitselfonitsownoutsidecapitalism,toanautonomousandrealmodeofproduction.Itcreatesacounter-economythatcanbethebasisforreconstitutinga‘counter-hegemony’withafor-benefitcirculationofvalue,which,alliedtopro-commonssocialmovements,couldbethebasisofthepoliticalandsocialtransformationofthepoliticaleconomy.

Hencewemovefromasituationinwhichthecommunismofcapitalisdominant,toasituationinwhichwehavea‘capitalforthecommons’,increasinglyinsuringtheself-reproductionofthepeerproductionmode.ThePPLisusedexperimentallybyGuerrillaTranslation,andisbeingdiscussedinvariousplaces,forexample,inFrance,intheopenagriculturalmachininganddesigncommunities.Thereisalsoaspecificpotentialinsidethecommons-orientedethicaleconomy,suchastheapplicationofopenbookaccountingandopensupplychains,whichwouldallowadifferentvaluecirculationwherebythestigmergicmutualcoordinationthatalreadyworksatscaleforimmaterialcooperationandproductionwouldmovetothecoordinationofphysicalproduction,creatingpost-marketdynamicsofallocationinthephysicalsphere.

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Replacingboththemarketallocationthroughthepricesignal,andcentralplanning,thisnewsystemofmaterialproductionwouldallowformassivemutualcoordinationinstead,enablinganewformof‘resource-basedeconomics’.Finally,thiswholesystemcanbestrengthenedbycreatingcommons-basedventurefunding,soastocreatematerialcommons,asproposedbyDmytriKleiner.Inthisway,themachineparkitselfistakenoutofthesphereofcapitalaccumulation.Inthisproposedsystem,cooperativesneedingcapitalformachinerywouldpostabond,andtheothercoopsinthesystemwouldfundthebond,andbuythemachineforacommonsinwhichbothfundersanduserswouldbemembers.Theinterestpaidontheseloanswouldcreateafundthatwouldgraduallybeabletopayanincreasingincometotheirmembers,constitutinganewkindofbasicincome.

So,tosummarizeourproposalforthenewCommons-BasedReciprocityLicense,itwouldallowthefreeusageofaparticularcommonsonthefollowingconditions:

thattheentityisacommongoodinstitutionorenterprise,structurallylinkedtoasocialorcommongoodobjectivethroughitsinternalstatutes.

thattheactivityorentityisnon-commercial.

thatthefor-profitusageoftheparticularcommonsisbasedonreciprocity.

smallandcooperative,worker-ownedenterpriseswithfor-profitactivitiesorgoalscanalsomakeuseoftheparticularcommonsgovernedbyaCBRL.

Thekeyexceptionisthatfor-profit,shareholderownedenterprisesthatdonotcontributetotheparticularcommonsarerequiredtopayalicensingfeeoranotherformofnegotiatedreciprocity.Theinterpretationsoftherules,particularcases,andanyexceptions,aredecidedbythedemocraticallyelectedandmanagedfor-benefitassociationthatislinkedtotheparticularcommons.Letusnowreturnbrieflytoourproposalforanewformatforthecooperativeeconomy,i.e.theethicalentrepreneurialcoalitionsthatareformedaroundthecommons:Thenewopencooperativismissubstantially

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differentfromtheolderform.Intheolderform,internaleconomicdemocracyisaccompaniedbyparticipationinmarketdynamicsonbehalfofthemembers,usingcapitalistcompetition.Hence,anunwillingnesstoshareprofitsandbenefitswithoutsiders.Thereisnocreationofthecommons.

Weneedadifferentmodelinwhichthecooperativesproducecommons,andarestatutorilyorientedtowardsthecreationofthecommongood,withmulti-stakeholderformsofgovernancewhichincludeworkers,users-consumers,investors,andthecommunitiesconcerned.Todaywehaveaparadoxthatopencommunitiesofpeerproducersareorientedtowardsthestart-upmodelandaresubsumedtotheprofitmodel,whilethecooperativesremainclosed,useIP,anddonotcreatecommons.

Inthenewmodelofopencooperativism,amergershouldoccurbetweentheopenpeerproductionofcommons,andthecooperativeproductionofvalue.Thenewopencooperativismintegratesexternalities,practiceseconomicdemocracy,producescommonsforthecommongood,andsocializesitsknowledge.Thecirculationofthecommonsiscombinedwiththeprocessofcooperativeaccumulation,onbehalfofthecommonsanditscontributors.Inthebeginning,theimmaterialcommonsfield,followingthelogicoffreecontributionsanduniversaluseforeveryonewhoneedsit,wouldco-existwithacooperativemodelforphysicalproduction,basedonreciprocity.Butasthecooperativemodelbecomesmoreandmorehyper-productiveandisabletocreatesustainableabundanceinmaterialgoods,thetwologicswouldmerge.Insummary,opencooperativesarecharacterizedasfollows:

Thecooperativeisstructurallyaligned,throughitsinternalstatutesorregulations,toasocialgoalorcommongoodobjective,towhichprofit-makingissubordinated(profitisusedtoachievethesocialgoalorcommongood).

Thecooperativeisdemocraticallyco-managedandco-ownedbyitsvariousstakeholders,i.e.thekeysocialgroupsthatareaffectedbyitsactivities,servicesandproducts.

Thecooperativeactivelyco-producescommons,immaterialor

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material.

Thecooperativehasaglobalorientation.

Mutualcoordinationmechanismsinthenew‘ethical’

entrepreneurialcoalitions:Cybersin[14]redux?

Traditionaleconomicdebatesareoftenbetweentheoptionsofstate-initiatedplanningontheoneside,andtheallocationthroughmarketpricingsignalsontheotherhand.Butthesocialknowledgeeconomyshowstheincreasinglikelypathofathirdmethodofallocation,thatoftransparentmutualcoordination.Thefirstattempttosuchatypeofresource-basedeconomy,intheSovietUnionofthe1960’s,whentheconstructionofaproto-internetwasinitiated,iswelldocumentedinthebookbyFrancisSpufford,RedPlenty.Theeffortfailedbecausetheoppositionofthebureaucraticforcesinthestateapparatus.ThesecondattempttookplaceinAllende’sChileintheearlyseventies,undertheadviseandleadershipofcomplexitythinkerStaffordBeer,andwassuccessfullyusedonasmallerscaletoovercomeacripplingstrikeofthetransportationindustry,wherewith25%ofthefleet,andusingtelexesforcoordination,thestrikewasovercome.ThustheprojectCybersinwasborn,aprojecttomutuallyanddemocraticallycoordinateChileanindustry,buttheprojectwasdestroyedthroughthemilitarycoup,andtheeffectivebombingofitsheadquarters.

Nevertheless,undertheimpulseofthesocialknowledgecommunities,mutualcoordinationofcomplexactivitiesismakingaverystrongappearance,evenifitislimitedatpresenttotheproductionof‘immaterial’value,i.e.knowledgeproducts.Thisemergenceneverthelesshasimplicationsforatransitiontoanewtypeofeconomiccoordination,thatwillco-existwithbothstateplanningandtraditionalmarketpricingmechanisms.Indeed,thereally-existingsocialknowledgeeconomyofcommons-orientedpeerproductionoffreesoftware,opendesignandhardware,isknowntofunctionaccordingtotheprincipleofmutualcoordination,or“stigmergy”.Theopendesigncommunitiesthatalreadyexistconstructandcoordinatetheirconstructionofcommonpoolsofknowledge,code,anddesign,throughmutualsignalingsystems

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becausetheirinfrastructuresofcooperationarefullyopenandtransparent.Intheworldofphysicalproduction,wecanseeanemergenceofopensupplychainsandopenbookaccountingonamuchsmallerscale.Nevertheless,thereisahistoricalopportunityforanemergenceofmutualcoordinationofphysicalproduction,ifthe‘ethicalentrepreneurialcoalitions’,whichmayemergearoundthesocialknowledgeeconomy,decidetosharetheiraccountingandlogisticalinformationstreams,withinthosecoalitions.Inthisscenario,whichishypotheticalatpresentbutcouldbeanintegralpartofamaturep2p/commonsorientedsocialknowledgeeconomy,wewouldseethegradualemergenceofathirdwayforthecoordinatedallocationofresourcesforeconomicproduction.

Thehistoricalandpresentimportanceofmutualizationintimesofincreasingresourcescarcity

Discussion:Theissueofecosystemsustainability

Facedwiththegraveecologicalcrisissuchasclimatechangeandspeciesextinction,butalsointermsofimpendingresourcecrises,itisimportanttokeepthehistoricalperspectiveinmindofhowhumankindhasfacedsuchsystemiccrisesinthepast.Oneoftheparadoxesofglobalizedcapitalismisindeeditsrelianceoneconomiesofscale,whichareincontradictionwiththeneedsofthebalanceoftheecosystem.Inshort,economiesofscalecreatecompetitivenessthroughtheproductionofmoreunitsatlowercost,whichnecessitatesmoreenergyandmoreresourceusetobecompetitive.Whatisneededintimesofresourcescarcityistheoppositeapproach:economiesofscope,orinotherwords,“doingmorewiththesame”.Thisisexactlyhowpastcivilizationalcrisesweresolved.FacedwiththecrisisoftheRomanEmpire,whichwasalsoaglobalizedsystemfacedwitharesourcecrisis,medievalEuroperespondedwitharelocalizationofproductionthroughthefeudaldomains,withthemutualizationoflivelihoodsandproductionthroughthemonasticorders,andaEurope-wideopendesigncommunity,i.e.theunifiedcultureoftheCatholicChurchandtheexchangeanddistributionoftechnicalknowledgethroughthemonasticorders.VerysimilarresponsescanbeseeninJapanand

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China.Today,theresponseofthesectorsofsocietythataremostsensitivetothecombinedcrisesareverysimilar,i.e.themutualizationofknowledgethroughtheopensourcemovements,andthemutualizationofphysicalinfrastructuresthroughthe‘sharingeconomy’.Thustheshifttothesocialknowledgeeconomyisalsothevitalandappropriateresponsetothecrisesoftheecosystems.

Whyinnovationshouldbelocatedinopendesigncommunities

Thereareseveralreasonswhyitiscrucialtomovetowardsasystemofopeninnovationthatislocatedincommonpoolsofknowledge,codeanddesign,especiallyasitrelatestotheissueofsustainability.Thefirstandgeneralreasonisthatpatentingtechnologyresultsinunacceptabledelaysforinventionanddiffusion,asshownbythestudiescitedbyGeorgeDafermos.Intimesofclimatechange,speciesextinctionandotherbiosphericdangers,itwouldbehighlydamagingtokeepthedevelopmentanddiffusionofsuchinnovationsunderthecontrolofprivatemonopolies,ifnottoallowpatentedtechnologiestobeshelvedaltogetherforreasonsliketheprotectionoflegacysystemsormarketshare.Thesecondreasonisequallystructuralandsystem.WheninnovationislocatedincorporateR&Ddepartments,thedesignisalwaysinfluencedbymarketandartificialscarcityconsiderations.InprivateR&D,plannedobsolescenceisnotabug,butafeature,ageneralizedpractice.Bycontrast,opendesign,openhardware,opentechnologycommunitieslackanymotivationforplannedobsolescenceanddesignbytheirverynatureforinclusion,modularity,andsustainability.Aquickcheckofthe25+opensourcecarprojectsimmediatelyshowsthatallofthemhavethoughtaboutsustainabilityaspartofthedesignprocess.

Thus,opendesigncommunitieshaveamuchgreaterpotentialtodesigninherentlyforre-use,recycling,upcycling,circulareconomyprocesses,biodegradablematerial,interoperability,modularity,andotheraspectsthathavedirecteffectsonsustainability.Eachinnovationinthisareaisinstantlyavailableforglobalhumanitythroughopenaccesstothesharedopenpoolsofknowledge.Corporationsandmarketentitieswhichproduceandsellonthe

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basisofsuchdesigns,arenaturallyalignedtothesustainabilitywhichisinherentintheopendesignprocesses.Opendesignpoolscanbestrategicallyalliedtosustainablepracticesthatincreasethispotential.Forexample,byallyingitselfwiththe‘sharingeconomy’practicesofshareduseintermsofconsumptionpractices.

Opendistributedmanufacturingofopenhardwarecomeswithenormouscostsavings;itisestimatedthatopenhardwareisgenerallyproducedatoneeightofthecostofproprietaryhardware.Forcountriesembarkingonthisroad,thishasimportantimplicationsforthebalanceofpayment,theneo-colonialdependencyontheglobalizedneoliberalsystem.Thecost-savingsfreessubstantialresourcesthatcanbeinvestedinotherareasofdevelopment,toincreasethediffusionofaparticulargoodorservice,etc…Finally,intermsofproduction,thecombinationofopendesignwithdistributedmachinerycanorwillhaveatremendouseffectonthegeographyofproduction,byallowingarelocalizationofproductioninmicro-factories.Currently,studiesshowthatthetransportationofgoods,isthree-quartersoftherealecologicalcostofproduction.Manyofthesetransportationcostscanbeeliminatedbythestimulationoflocalanddomesticindustriesthatcombinethegeneralizationofthemicro-factorysystemwiththeglobalengineeringbyopendesigncommunities,underthegeneralmotto:‘what’sheavyislocal,what’slightisglobal’.

Theroleof‘idle-sourcing’andthesharingeconomy

Theemergenceofthesocialknowledgeeconomy,asaprocessofmutualizationofimmaterialresources,isalsoaccompaniedbytheemergenceofa‘sharingeconomy’,i.e.aprocessofmutualizationofmaterialresources.Thissharingeconomyisemergingasapartlycrisis-drivenresponsestotheglobaleconomiccrisis,andpartlybecausecurrentnetworkedtechnologiesdrasticallydiminishthecoordinationandtransactioncostsnecessarytomanagesuchmutualization.Inoneoftheearlierbooktreatmentsonthisemergence,i.e.RachelBotsman’s‘RiseofCollaborativeConsumption’,theauthordistinguishesthreemajorcategoriesofsharing:

ProductServiceSystemslikeBikesharingandCarsharing,based

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ona‘usagemindset’wherebyyoupayforthebenefitofaproduct–whatitdoesforyou-withoutneedingtoowntheproductoutright.

RedistributionMarketslikeFreecycleandeBay,usedorpre-ownedgoodsareredistributedfromwheretheyarenotneededtosomewhereorsomeonewheretheyare

CollaborativeLifestyleslikeCouchsurfing,andtheLendingClub:sharingandexchangeofresourcesandassetssuchastime,food,space,skills,andmoney.

Thesharingeconomyisanimportantresponsetoresourceandenergyscarcitychallenges,andinparticulartotheenormouswasteinmaterialresourcesthatistheresultofaprofit-drivenconsumptiveeconomy.Thesharingeconomyallowsmassiveidle-sourcing,i.e.there-useoflittleusematerialpossessions.Mutualizingcertaininfrastructures,likecar-sharingforexamples,allowsforsubstantialsavingsintheuseofenergyandmaterialresources,necessarytofulfillcertainfunctionsliketransportation.Thesharingeconomyisideallysupportedandenablebyasocialknowledgeeconomy,whichallowsopeninformationaboutidleresourcestobesharedacrossusercommunities.Itisimportanthowever,tolookattheownershipandgovernanceissuesunderpinningthisemergence.

Onepartofthesharingeconomyisdrivenbyprivatelyownedplatformsthatmonetizesuchidleresources;anotherpartofthesharingeconomyconsistofsocialandnon-profitinitiativesthataimfornon-monetarysharingofsuchresources.Thepartofthesharingeconomythatisclearlydrivenbyprivately-owned,profit-drivenplatformsthatactasintermediariesbetweenuserscanclearlyderailsomeoftheadvantages.Forexample,theuseofdis-aggregateddistributedlabor,whereisolatedfreelanceworkersarefacingademandsidethatisclearlyempoweredbytheplatformdesign,canexertadownwardtrendonwages.

Asocialknowledgepolicyshouldmakesurethatownershipandgovernanceformsdonotderailthefreesharingofknowledgeamongstallusers,andneedstomakesurethatprivateownershipof

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platformsdoesnotendangersuchpossibilities.However,manyoftheactivistforcesinthesharingeconomyareworkingforsociallyprogressivepolicies.ThisforexamplethecasefortheeBook“Guide”:Policies for Shareable Cities,co-producedbyShareablemagazineandtheSustainableEconomiesLawCenter.Otherpolicyproductions,likeforexamplethecampaignsofpeers.orgintheU.S.,aretheproductofanorganizationthatblurthesocialcontradictionsbetweentheusersandtheownersofthesharinginfrastructures.However,itremainsapriorityforatransitiontowardsasocialknowledgeeconomy,tosystematicallyenableandempowerthemutualizationofinfrastructuresthattheemergentsharingeconomyrepresents,whilematchingittoownershipandgovernanceformsthatincludetheusercommunities.

Ahistoricalopportunity:TheConvergenceofMaterial/TechnicalP2PInfrastructures,Digital/ImmaterialCommons,andCommons-OrientedGovernanceandOwnershipModels

Thetransitiontowardsasocialknowledgeeconomyistodayfavoredbyastrongconvergenceoftechnological,socialandtechnologicaltrendsand‘affordances’,i.e.technologicalpossibilitiesthatcanbeembracedbyemancipatorypoliticalandsocialforces.Thefirstisofcoursethepeertopeerlogicofopentechnicalinfrastructuresliketheinternet,whichallowforpermissionlessself-organizationandvaluecreationbyproductivecommunitiesthatcanoperatebothonalocalandglobalscale.Theinternetisineffectnotjustacommunicationmedium,butmoreproperlyaproductionmedium.Thesecondisthe‘distribution’ofthemeansofproductionthrough3DPrintingandothertrendsintheminiaturisationofmachinery.Thisallowsmuchlowerentrybarriersfortheself-organizationofacivicandcooperativeeconomy.Thisisthe‘InternetofManufacturing’.

Theso-calledSharingEconomyallowsforthemutualizationofcriticalinfrastructuresandthe‘idle-sourcing’ofisolatedandscatteredresources.TheInternetofThingsallowsforamorefine-grainedcontrolandtheautonomyandinterconnectionofobjects.

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Thethirdisthedistributionoffinancialcapital,throughcrowdfunding,sociallendingandotherpossibilities,whichallowamorefine-grainedallocationofinvestmentsbycitizen’sthemselves.ThisthetheInternetofEthicalFinancialCapital.Thefourthisthedevelopmentofrenewabledistributedenergy,whichallowsforanInternetofEnergy,andenergeticautonomyatmorelocallevels,suchasvillage,neighborhoodandevenhousehold.Freesoftware,openknowledge,opendesignshowthepossibilitiesfortheincreasednetworkingandmutualizationofimmaterialresources.Thethreeotherformsofdistributionpointtoapotentialforthenetworkingandmutualizationofphysicalresources.

Inotherwords,wehaveagreatpotentialtoengineeraconvergenceofboththeimmaterialandmaterialcommons.Thuswecanenvisagethesocialknowledgeeconomyasenablingavastseriesofinterconnectedknowledgecommons,foreveryfieldofhumanactivity,butwhichisenabledbothbymaterialconditions(theinternetofmanufacturingandenergy),andimmaterialconditions(metrics,legalframeworks,etc…).However,aswehaveshowninourintroductiontothevalueregimes,suchcommonscanstillbethesubjectofan‘extractivismofknowledge’whichbenefitsprivilegedeliteplayers.Andaswehaveshowninourdistinctionsregardingtechnologyregimes,thep2ptechnicalaffordancescanbeembeddedinvalue-sensitivedesignthatprivilegescertainplayers,liketheownersoftheplatforms.

Thegreatdangeristhereforethatwhatwedisintermediateanddecentralizewithonehand,canbere-intermediatedbynewdominantplayersthroughtheotherhand.Thepromiseofthesocialknowledgeeconomywillthereforenotberealizedwithoutprofoundchangesintheregimesofpropertyandgovernance.Thisiswhymemustinsistthatthesocialknowledgeeconomy,i.e.commons-orientedpeerproductionbyautonomousproductivecommunities,goeshandinhandwithbothpeerpropertyandpeergovernance.Today,socialmedialikeFacebook,searchengineslikeGoogle,areinthehandsofanewtypeof‘netarchical’oligopolies.Manyenablingplatforms,suchasthoseforcrowdfundingandsociallending,aremerelyformsofdistributedcapitalism,functioninglikereversemarketmechanisms(suchastheKickstartercrowdfundingplatform),thatdonotcreateandsustaincommons.Hence,the

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distributionofthemeansofknowledgecreationanddiffusion,ofproductionmachineryandfinancialcapital,ofdistributedenergyandofthevitallandresources,needstobematchedbydistributedandcommonownershipandland.Whiletheimmaterialcommonsofnon-rivalandshareablegoodscanbeprotectedbyopenlicenses,thematerialproductionresultingfromthemshouldtakeplacethroughethicalentitiesthatarethepropertyofthevalueproducersthemselves.

Thereistodayanemergenceofawiderangeofdynamicgovernanceandpropertyregimes,thatcanguaranteedistributionanddemocratizationofdecision-makingpower.GovernanceinnovationssuchastheViableSystemsModel,sociocracyandholocracy,havebeendevelopedtoallowfordemocraticdecision-makinginproductivecommunities;DynamicpropertyregimesasastheFairSharesModelofEnterprise,SolidarityCoops,CommunityLandTrusts,andmanyothers,havebeendevelopedtocommon-izeanddistributeproperty.Thelegalandregulatoryframeworksofthesocialknowledgeeconomyshouldfacilitatethedevelopmentandchoiceofsuchmodalities.ThekeyistoenableapluralisticCommonwealthrichinchoices,thathaveaskeyrequirementbothproductivedemocracyandtheintegrationofenvironmentalandsocialexternalities.Aswehaveseenaboveinourintroductiontofourdistinctsocio-technicalregimes,p2pinfrastructuresandpracticescanbeembeddedinnetarchicalmodels(hierarchicalcontrol,ownershipandgovernanceoftheenabledp2psociallogic);distributedcapitalism(monetisingofidleandshareableresources),butalsoinlocalcommunityandglobalcommonsorientedpropertyandgovernanceregimes.Ourrecommendationisforthecreationoftwoinstitutionsthatcaninsuredemocraticownershipandgovernancewithinthesphereoftheimmaterialandmaterialcommons:

*TheInstituteforPluralisticOwnership

Thisinstitute,incooperationwiththeInstitutefortheCommonspresentedabove,assistsindividualsandcommunitiesandactorsofthesocialknowledgeeconomytoknowtheownershipalternativesthatareavailable,facilitatesaccesstothatknowledge,tolegal

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enablement,etc…ItcanbemodeledonsuccessfulcivicinitiativesliketheSustainableEconomicsLawCenterinSanFrancisco,undertheleadershipofJanelleOrsi;andoftheShareLexmovementinEurope.

*TheInstituteforPluralisticGovernance

Thisinstitute,incooperationwiththeInstitutefortheCommonspresentedabove,assistsindividuals,communitiesandactorsofthesocialknowledgeeconomytoknowthegovernancealternativesthatareavailable,facilitatesaccesstothatknowledge,tolegalenablement,etc…Ithelpsfindtraininginthehumancapabilitiesthatfavormulti-stakeholderformsofgovernance.

ElementsofIdealizedandIntegrativeFullTransitionPlantoamatureSocialKnowledgeEconomy

Thisisaverysyntheticsummaryofthelogicofthetransitionstrategy

Analysis

1.Underconditionsofproprietary(industrial)capitalism

Workerscreatevalueintheirprivatecapacityasprovidersoflabor

Deskillingofworkersproductionknowledge;creationofmanagerialandengineeringlayerswhichmanagecollectiveproductiononbehalfoftheownersofcapital

CodifiedknowledgeisproprietaryandthevalueiscapturedasIPrent

Ownersofcapitalcaptureandrealizethemarketvalue,partialredistributionintheformofwages

Underconditionsofcapital-laborbalance,thestateredistributes

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wealthtotheworkersasconsumersandcitizens

Undercontemporaryconditionsoflaborweakness,thestateredistributesthewealthtothefinancialsectorandcreatesconditionsofdebtdependenceforthemajorityofthepopulation

2.Underconditionsofemergingpeerproductionunderthedominationoffinancialand‘cognitive’,‘netarchical’capitalism

Civicvoluntarycontributors,paidlaborandindependententrepreneurscreatevaluecodifiedincommonpoolsofknowledge,code,anddesign

Capitalownersrealizeandcapturethemarketvalueofbothcontributorsandlabor;proprietarynetworkandcollaborationplatformscaptureandrealizetheattentionvalueofthesharers/contributors

Capitalownersprofitfromthebenefitsofdisaggregateddistributedlabor(crowdsourcing)

Capitalco-createdthroughthefinancingoflaborandplatforms,thecontinuedaccumulationofcommonpoolsofknowledge,codeanddesign;underconditionsofprecarityforthevoluntaryciviccontributorsandunsupportedcommons-orientedentrepreneurship

Commonsaremanagedbyfor-benefitinstitutionswhichreflectthebalanceofinfluencebetweencontributors,labor,andcapitalowners,butcontinuetoexpandthecommonpools;thecommonssectorlackssolidaritymechanismstocopewithprecarity;civilsocietyisstillderivatetothemarketandstatesectors

Thestateweakensitspublicserviceandsolidarityfunctions,infavorofitsrepressivefunctionsandsubsidizesfinancialcapital;thestateonlyminimallyco-createstheconditionsforcommons-orientedpeerproduction,andredistributiontofinancialcapitalcontinues

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3.Underconditionsofstrongpeerproductionundercivicdominance

Civicvoluntarycontributorsandautonomouscooperativelaborcreatecodifiedvaluethroughcommonpools;laborandcivicreskillingoccurthroughcommons-orienteddistributedmanufacturingwhichplacesvaluecreatorsatthehelmofdistributedmanufacturingandotherformsofvaluecreation

Commonscontributorscreatecooperativecommons-orientedmarketentitiesthatsustainthecommonsandtheircommunitiesofcontributors

Cooperativeandothercommons-friendlymarketentitiesco-createcommonpoolsbutengageinthecooperativeaccumulationonbehalfoftheirmembers;commonscontributionsarecodifiedintheirlegalandgovernancestructures;Creationofentrepreneurialcoalitionsandphyles(structurednetworksoffirmsworkingaroundjointcommonpoolstosustaincommons-producingcommunities).

Societalmutualcoordinationofproductionthroughopensupplychainsdirectthemarketactivities.

Thecommons-enablingfor-benefitinstitutionsbecomeacorecivicformforthegovernanceofcommonpools;theassociatedmarketentitiescreatesolidaritymechanismsandincomeforthepeerproducersandcommoners,supportedbythePartnerState.

Thestate,dominatedbythecivic/commonssectorsbecomesaPartnerState,whichcreatesandsustainsthecivicinfrastructurenecessarytoenableandempowerautonomoussocialproduction.

Themarketbecomesamoralandethicaleconomy,orientedaroundcommonsproductionandmutualcoordination,supportedbythePartnerStatefunctions.

Themarketsectorisdominatedbycooperative,commons-

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orientedlegal,governance,andownershipforms;theremainingprofit-maximizingentitiesarereformedtorespectenvironmentalandsocialexternalities,includingredistributionofextracted‘commons-benefits’.

Governancemechanismsarereformedtowardscommons-orientationandmulti-stakeholdergovernancemodels;ownershipmodelsarereformedfromextractivetogenerativemodels.

ThePartnerStatemodelrenewspublicserviceprovision,solidaritymechanismsandsocialcarethroughthecommonificationofpublicservicesandpublic-commonspartnerships.

Socialredistributiontakesplacethroughbasicincomeprovisionsandreductionofnecessarylaborparticipationtocreateconditionsforciviccontributionsandacontributoryeconomy.

TransitionDynamic

TheState

ThestatebecomesaPartnerState,whichaimstoenableandempowerautonomoussocialproduction,whichitalsoregulatesinthecontextofcommongoodconcerns

Thestatestrivestomaximalopennessandtransparency

Thestatesystematizesparticipation,deliberation,andreal-timeconsultationwiththecitizens

Thesociallogicmovesfromownership-centrictocitizen-centric

Thestatede-bureaucratizesthroughthecommonificationofpublicservicesandpublic-commonspartnerships

Publicservicejobsareconsideredasacommonpoolresourceandparticipationisextendedtothewholepopulation

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Representativedemocracyisextendedthroughparticipatorymechanisms(participatorylegislation,participatorybudgeting,etc…)

Representativedemocracyisextendedthroughonlineandofflinedeliberationmechanisms

Representativedemocracyisextendedthroughliquidvoting(real-timedemocraticconsultationsandprocedures,coupledtoproxyvotingmechanisms)

Taxationofproductivelabor,entrepreneurshipandethicalinvestingisminimized;taxationoftheproductionofsocialandenvironmentalgoodsisminimized;taxationofspeculativeunproductiveinvestmentsisaugmented;taxationonunproductiverentalincomeisaugmented;taxationofnegativesocialandenvironmentalexternalitiesisaugmented

Thestatesustainsciviccommons-orientedinfrastructuresandethicalcommons-orientedmarketplayers

Thestatereformsthetraditionalcorporatesectortominimizesocialandenvironmentalexternalities

Thestateengagesindebt-freepublicmonetarycreationandsupportsastructureofspecializedcomplementarycurrencies

TheEthicalEconomy

Creationofacommonsandcommongoodorientedsocial/ethical/civic/solidarityeconomy

Ethicalmarketplayerscoalescearoundcommonsofproductiveknowledge,eventuallyusingpeerproductionandcommons-orientedlicensestosupportthesocial-economicsector

Ethicalmarketplayersintegratecommongoodconcernsanduser-drivenandworker-drivenmultistakeholderintheirgovernancemodels

Ethicalmarketplayersmovefromextractivetogenerativeforms

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ofownership;open,commons-orientedethicalcompanyformatsareprivileged

Ethicalmarketplayerspracticeopenbookaccountingandopensupplychainstoaugmentnon-marketcoordinationofproduction

EthicalmarketplayerscreateaterritorialandsectoralnetworkofChamberofCommonsassociationstodefinetheircommonneedsandgoalsandinterfacewithcivilsociety,commonersandthepartnerstate

WiththehelpfromthePartner-State,ethicalmarketplayerscreatesupportstructuresforopencommercialization,whichmaintainandsustainthecommons

Ethicalmarketplayersinterconnectwithglobalproductivecommonscommunities(opendesigncommunities)andwithglobalproductiveassociations(phyles)whichprojectethicalmarketpoweronaglobalscale

Theethicalmarketplayersadopta1to8wagedifferentialandminimumandmaximumwagelevelsareset

Themainstreamcommercialsectorisreformedtominimizenegativesocialandenvironmentalexternalities;incentivesareprovidedthataimforaconvergencebetweenthecorporateandsolidarityeconomy

Hybrideconomicforms,likefairtrade,socialentrepreneurship,B-Corporationsareencouragedtoobtainsuchconvergence

Distributedmicrofactoriesfor(g)localizedmanufacturingondemandarecreatedandsupported,inordertosatisfylocalneedsforbasicgoodsandmachinery

Institutesforthesupportofproductiveknowledgearecreatedonaterritorialandsectoralbasis

Educationisalignedtotheco-creationofproductiveknowledgeinsupportofthesocialeconomyandtheopencommonsof

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productiveknowledge

TheCommonsSector

Creationofcommonsinfrastructuresforbothimmaterialandmaterialgoods;societyisseenasaseriesofinterlockingcommons,thataresupportedbyanethicalmarketeconomyandaPartnerStatethatprotectsthecommongoodandcreatessupportivecivicinfrastructures

LocalandsectoralcommonscreatecivilalliancesofthecommonstointerfacewiththeChamberoftheCommonsandthePartnerState

Interlockingfor-benefitassociations(KnowledgeCommonsFoundations)enableandprotectthevariouscommons

SolidarityCoopsformpublic-commonspartnershipsinalliancewiththePartnerStateandtheEthicalEconomysectorrepresentedbytheChamberofCommons

Naturalcommonsaremanagedbypublic-commonspartnershipandbasedoncivicmembershipinCommonsTrusts

Politicalreconstructionofsocialmovementsinaconjunctureofpost-industrialtransformation

Theshifttoanopenknowledge-basedcommonssocietyalsocruciallydependsonthereconfigurationofpolitics.Thissectionaimstobeagenericblueprintforre-constitutionofpoliticalforcesaroundapro-commonsagenda,basedonabottom-upprocess:Theproposalistocreatethreeinstitutionalcoalitions,twofordomesticuse(local,regional,national)andonethataimstoplayaroleinreconstitutingglobalgovernance(supra-regionalandglobal):

*The‘local’civic/politicalinstitution:TheAllianceoftheCommons

Anallianceofthecommonsisanalliance,meetingplaceandnetworkofp2p-commonsorientednetworks,associations,places;

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whodonothaveeconomicrationales.Thesealliancescanbetopical,local,transnational,etc…AnexampleistheinitiativeParisCommunsUrbainswhichisattemptingtocreateacommonplatformforurbancommonsintiativesintheParisregion;anotherParisian/FrenchexampleisthefreeculturalnetworkLibreSavoirs,whichisdevelopingasetofpolicyproposalsarounddigitalrights.(bothexampleswerecommunicatedtomebyLionelMaurel).Anallianceofthecommonsisameetingplaceandplatformtoformulatepolicyproposalsthatenhancecivicinfrastructuresforthecommons.Anallianceofthecommons,could,incooperationwiththeChamberofCommons(seeinfra)orautonomously,produceasocialchartertoreconstitutepoliticalforcesaroundapro-commonspoliticalagenda.

*The‘local’political-economyinstitution:TheChamberoftheCommons

Inanalogywiththewell-knownchambersofcommercewhichworkontheinfrastructureforfor-profitenterprise,theCommonschamberexclusivelycoordinatesfortheneedsoftheemergentcoalitionsofcommons-friendlyethicalenterprises(thefor-benefit,missionorpurpose-driven,ethical/solidarity/socialeconomyactorsconcernedwiththecommongoodandnotprofitorcapitalaccumulation),butwithaterritorialfocus.Theiraimistouncovertheconvergentneedsofthenewcommonsenterprisesandtointerfacewithterritorialpowerstoexpressandobtaintheirinfrastructural,policyandlegalneeds.Incooperationwiththecivicallianceofthecommonsdiscussedabove,theChambercanproducesocialcharterstoreconstitutepoliticsaroundtheprioritiesofacommons-orientedethicaleconomy.

*Theglobaleconomicinstitution:theP2P/CommonsGloba-local«Phyle»

Aphyle(asoriginallyproposedbylasindias.net)isacoalitionofcommons-oriented,community-supportiveethicalenterpriseswhichtradeandexchangeinthemarkettocreatelivelihoodsforcommonersandpeerproducersengagedinsocialproduction.Theuseofapeerproductionlicencekeepsthecreatedexchangevalue

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withinthesphereofthecommonsandstrengthenstheexistenceofamoreautonomouscounter-economywhichrefusesthedestructivelogicofprofit-maximisationandinsteadworkstoincreasebenefitsfortheirown,butalsotheemergingglobalcommons.Phylescreatedintegratedeconomiesaroundthecommons,thatrenderthemmoreautonomousandinsurethesocialreproductionofitsmembers.Hyperproductiveglobalphylesthatgeneratewell-beingfortheirmemberswillgraduallycreateacounterpowertothehithertodominantMNO’s.Phylesarenecessarytoprojectethicaleconomicpowerbeyondthenation-stateintothesphereofglobalgovernancethatispresentlydominatedbymultinationalprivatefor-profitcompanies.

*Inconclusion:

Inshort,weneedanallianceofthecommonstoprojectcivilandpoliticalpowerandinfluenceateverylevelofsociety;weneedphylestostrengthenoureconomicautonomyfromtheprofit-maximizingdominantsystem;andweneedaChamberoftheCommonstoachieveterritorialpolicy;legalandinfrastructuralconditionsforthealternative,humanandnature-friendlypoliticaleconomytothrive.Neitheraloneissufficient,buttogethertheycouldbeapowerfultriadforthenecessaryphasetransition.

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ReferencesArrowK.(1962)‘EconomicWelfareandtheAllocationofResourcesforInvention’.InArrow,K.(Ed.)TheRateandDirectionofInventiveActivity:EconomicandSocialFactors(pp.609-625).PrincetonUniversityPressArvidsson,AdamandPeitersen,Nicolai(2013).TheEthicalEconomy.RebuildingValueAftertheCrisis.ColumbiaUniversityPress.Barandiarán,XabierE.&Vázquez,Daniel(2013).SumakYachay.DevenirSociedaddelConocimientoComúnyAbierto.DesigningtheFLOKSociety.v.1.5.2.Belfanti,Carlo(2004)‘Guilds,Patents,andtheCirculationofTechnicalKnowledge:NorthernItalyduringtheEarlyModernAge’.TechnologyandCulture45(3):569-589Berners-Lee,T.(1999)WeavingtheWeb.TexereBoldrin,M.,Levine,D.K.&Nuvolari,A.(2008)‘DoPatentsEncourageorHinderInnovation?TheCaseoftheSteamEngine’.TheFreemanOct.,pp.14-17Boldrin,M.&Levine,D.K.(2013)‘TheCaseAgainstPatents’.JournalofEconomicPerspectives27(1):3-22Brec,E.(2008)‘NIHilismandOtherInnovationPoison’.MSDNBlogs,Nov1.Retrievedfromhttp://blogs.msdn.com/b/eric_brechner/archive/2008/11/01/nihilism-and-other-innovation-poison.aspxBurrough,Xtine(2012)NetWorks,Routledge.Dosi,G.,Marengo,L.&Pasquali,C.(2006)‘Howmuchshouldsocietyfuelthegreedofinnovators?:Ontherelationsbetweenappropriability,opportunitiesandratesofInnovation’.ResearchPolicy35(8):1110-1121Gates,B.(1991)‘ChallengesandStrategy’.Memo,MicrosoftCorporation,May16.Retrievedfromhttp://www.std.com/obi/Bill.Gates/Challenges.and.StrategyGilfillan,S.C.(1935)Inventingtheship.FollettpublishingGilfillan,S.C.(1970)SociologyofInvention.MITPressHall,B.H.&Ziedonis,R.H.(2007)‘AnEmpiricalAnalysisofPatentLitigationintheSemiconductorIndustry’.UniversityofCaliforniaatBerkeleyWorkingPaper.Retrievedfrom

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http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.69.5271Levin,R.C.,Klevorick,A.K.,Nelson,R.R.&Winter,S.G.(1987)‘AppropriatingtheReturnsfromIndustrialResearchandDevelopment’.BrookingsPapersonEconomicActivity3(SpecialIssueonMicroeconomics):783–820Levy,S.(1984)Hackers:HeroesoftheComputerRevolution.NewYork:AnchorPress/DoubledayMann,C.C.&Plummer,M.L.(1991)TheAspirinWars:Money,Medicine,and100YearsofRampantCompetition.NewYork:KnopfMoser,P.(2013)‘PatentsandInnovation:EvidencefromEconomicHistory’.JournalofEconomicPerspectives27(1):23-44Nuvolari,A.(2004)TheMakingofSteamPowerTechnology:AStudyofTechnicalChangeduringtheBritishIndustrialRevolution.PhDDissertation,EindhovenUniversityofTechnologyPearce,J.M.(2012a)‘Physics:Makenanotechnologyresearchopen-source’.Nature491:519–521Pearce,J.M.(2012b)‘Thecaseforopensourceappropriatetechnology’.Environment,DevelopmentandSustainability14(3):425-431Scholz,Trebor(2012).CheaperbytheDozen:AnIntroductiontoCrowdsourcing,pp.47-54.Bookchapterfrom:XtineBurrough,NetWorks,RoutledgeScotchmer,S.(1991)‘StandingontheShouldersofGiants:CumulativeResearchandthePatentLaw’.JournalofEconomicPerspectives5(1):29-41Wark,McKenzie(2004).TheHackerManifesto.HarvardUniversityPress.

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RemarksPleaseseeDiscussion

1. ↑PlanNacionaldelBuenVivir2013-2017,p.19:“LaRevolucióndelConocimiento,queproponelainnovación,lacienciaylatecnología,comofundamentosparaelcambiodelamatrizproductiva,concebidacomounaformadistintadeproduciryconsumir.Estatransiciónllevaráalpaísdeunafasededependenciadelosrecursoslimitados(finitos)aunaderecursosilimitados(infinitos),comosonlaciencia,latecnologíayelconocimiento.”

2. ↑SpeechattheCampusPartyevent,https://www.youtube.com/watch?v=Zjajy-ia-SE

3. ↑Hereisarelateddefinition:“Semiocapitalismoeselmododeproducciónenelcuallaacumulacióndecapitalsehaceesencialmentepormediodeunaproducciónyunaacumulacióndesignos:bienesinmaterialesqueactúansobrelamentecolectiva,sobrelaatención,laimaginaciónyelpsiquismosocial.Graciasalatecnologíaelectrónica,laproduccióndevieneelaboraciónycirculacióndesignos.Estosuponedosconsecuenciasimportantes:quelasleyesdelaeconomíaterminanporinfluirelequilibrioafectivoypsíquicodelasociedady,porotrolado,queelequilibriopsíquicoyafectivoquesedifundeenlasociedadterminaporactuarasuvezsobrelaeconomía.”FrancoBerardi(Bifo);Retrievedathttp://www.lavaca.org/notas/quien-es-y-como-piensa-bifo/)

4. ↑Thissubjectiscoveredbythecompanionpaper:Torres,Jenny.OpenTechnicalInfrastructures(stream4)-FreeSoftware.Retrievedathttps://floksociety.co-ment.com/text/pW2QAIp4w79/view/

5. ↑Thisresearchresult,communicatedorally,isasyetunpublishedbutisprefiguredinthefollowingpublication:TreborScholz,“CheaperbytheDozen:AnIntroductiontoCrowdsourcing,”pp.47-54;achapterfromXtineBurrough,NetWorks,Routledge,2012.

6. ↑Text,detailsanddiscussionviahttp://p2pfoundation.net/Peer_Production_License

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7. ↑Ascientificbibliographyonstigmergyisavailablehereathttp://p2pfoundation.net/Stigmergy#Bibliography

8. ↑HumanizingtheEconomy:cooperativesintheAgeofCapital:http://www.newsociety.com/Books/H/Humanizing-the-Economy

9. ↑Formoredetails,seethepaperbyJohnRestakis:Institutionsforsocialknowledgeeconomy(stream3)-SocialKnowledgeandtheSocialEconomy;retrievedathttps://floksociety.co-ment.com/text/HBlnwquAi25/view/

10. ↑Theruling,FCC14-61isavailableathttp://transition.fcc.gov/Daily_Releases/Daily_Business/2014/db0515/FCC-14-61A1.pdf

11. ↑http://p2pfoundation.net/What%27s_Wrong_with_the_Current_Monetary_System#7._Money_as_debt_contributes_to_growth_pressure.

12. ↑Source:ExcerptsfromatextpreparedbyTommasoFattoriaspartofthebook-project“ProtectingFutureGenerationsThroughCommons”,organizedbyDirectorateGeneralofSocialCohesionoftheCouncilofEuropeincollaborationwiththeInternationalUniversityCollegeofTurin.Thetextwillbepublishedsoonin“TrendsinSocialCohesion”Series,CouncilofEuropepublications.

13. ↑Anexampleofsuchfinancingisthe‘ArtisticVoucherSystem’,whichhasbeeninscribedinthe‘OrganicCodeforSocialKnowlege’(COESC+1)

14. ↑Cybersynwasademocraticplanning/mutualcoordinationprojectforChileanindustry,undertakenbyStaffordBeerforthegovernmentofSalvadorAllende,youcanfinddetailshereathttp://p2pfoundation.net/Cybersyn

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AcknowledgementsTheCommonsTransitionPlanisanon-regionspecificadaptationofthe1stCommonsTransitionplandevelopedbyMichelBauwensforEcuador’sFLOKSocietyproject.TheEcuadorianplanwasitselfbuiltontheoriginalFLOKProposal“SumakYachay.DevenirSociedaddelConocimientoComúnyAbierto.DesigningtheFLOKSociety.v.1.5.2.ByXabierE.Barandiarán&DanielVázquez,2013.”,i.e.DesigningtheFLOKSociety,byXabierE.Barandiarán&DanielVázquez.TheFLOKSocietyteamleaderswereDanielVázquezandXabierBarandiarán,withMichelBauwens,asresearchdirector,assistedbyfiveresearchstreamcoordinatorsandtheassistantcoordinatorDanielAraya.Buildingonthoseproposals,theplanspecificallycallsforanintegrativeor‘wholistic’approach,whichgoesbeyondtechnology,andcallsformeasuresthattakeintoaccountdifferentaspectsofsocialchangethatneedtooccurifnotsimultaneously,thenatleastlinkedthroughapositivefeedbackloop,inwhichvariousmeasuresreinforceeachother.Italsobroadensanddeepensthecallbylookingatcommons-basedinfrastructuresnotjustforknowledge,butforothersocialandproductiveactivities.

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PublicPolicyforaSocialEconomybyJohnRestakis

“Thefundamentalpremiseofdemocracyisthatgovernmentsareaccountabletotheircitizensandthatgovernmentpoliciesserveandprotectthecommoninterest.Anirreplaceableaspectofthiscommoninterestarethecommonsthemselvesthatunderlietheoperations,attitudes,andskillsthatmakepossiblethecollectiveformsoflivingandactingthatdefinethesocialandsolidarycharacterofahealthycivilsociety.Itfollowsthatunlessthecollectivevaluesofcivilsocietyandthecommongoodcandeterminehoweconomiesoperate,thepresentmodelofpoliticaleconomywilldonomorethantinkerwithasystemthatisindireneedofradicalreform.ThePartnerStateisonewayofusheringinthisreform.”

Overthelast20years,therehasarisenaglobalinterestintherolethatthesocialeconomyplaysintheeconomicandsociallifeofnations.Thisinteresthasspawnedagrowingliteratureonthenatureandroleofthesocialeconomy,itssizeandcomposition,itsoperatingrulesandorganizingprinciples,itsrelevancefortheeconomicandsocialwellbeingofsocieties,anditsrelationtothestateontheonehandandtheprivatesectorontheother.

Increasingly,thesocialeconomyisbeingviewedastherepositoryofthosesocial,cultural,andpoliticalvaluesthataremostrelevantforprotectingandadvancingthecollectivegood.Thesevaluesincludetheideaofreciprocityasthedrivingforceofsocialeconomyorganizations,thepursuitofsocialaimsthroughthepracticeofmutuality,andthepromotionofsocialsolidaritythroughtheadvancementofsocialandeconomicequity.

Forthesereasons,andasaresultoftheupheavalsbroughtonbyfreemarketcapitalism,thesocialeconomyisalsoemergingasacomplementtothestateforthesocialwelfareofcitizens–arolemadeincreasinglynecessarybytheabrogationofthisdutyonthe

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partofgovernments.Theeconomiccrisisandthedominationofneoliberalideologyhavethuscombinedtothrustthesocialeconomyintoahistoricspotlightandtoplayacentralroleinthereconfigurationofthebodypoliticofnationstheworldover.

However,thesocialeconomyisfarmorethantheapplicationofco-operativeorself-helpstrategiesoperatingatthemarginsoftheeconomytohelpthepoorasissometimesbelieved.Noristhesocialeconomymerelyacollectionofeconomicself-defensemeasuresagainstthefailuresanddepredationsofthe“freemarket”economy.Rather,thesocialeconomyrepresentsawhollydifferentconceptionofeconomicsinwhichmarketforcesandeconomicpracticeservesocialorcollectiveinterests,ratherthanjustthoseofcapitalortheindividual.Thesocialeconomyisthetestinggroundforakindofeconomicsthatcanactuallydeliveronthepromisesofsocialjustice,equity,andcollectivewellbeingthataremanifestlybeyondthecapacityofthecapitalistparadigm.

TheCaseofEcuador

AllthesequestionshavecomeintotheforegroundinEcuador,wherethegovernmenthasadoptedtheconceptofBuen Vivir,or“GoodLiving”asthecenterpieceofitsNationalPlanandits(proclaimed)politicaloutlook.1Itiswithreferencetothisplanthatthispaperwasoriginallypenned,withtheintentionofshowinghowthesocialeconomy,anditsrelationtothestateandtothequestionofgovernance,playsacentralroleinrealizinganalternativetothemarketlogicofneo-liberalismthroughtheestablishmentofasocialknowledgeeconomy2astheframeworkforanewkindofpoliticaleconomy.This,inessence,wastheaimoftheFLOKSocietyProject(Free/LibreOpenKnowledge)launchedin2013.

AsenvisagedinEcuador’sNationalPlan,Buen Vivirrelatestoamodelofpoliticaleconomythatopposesneo-liberalismandattemptsauniquebalancebetweenfreeandopenaccesstoknowledge;aninformedandmobilizedcitizenry;aformofdecentralized,democratic,andlocallyaccountablegovernance;aneconomicandpublicpolicyinservicetothecollectivegood;andaboveallrespectandstewardshipoftherightsofnatureas

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guaranteedbytheconstitution.

ThispaperrelatestheideasandpolicyproposalsdevelopedforEcuadortoalargerframeworkforthepromotionofsocialeconomyprinciplesandtheconceptofthePartnerStateascomponentsofaradicalre-visioningofpoliticaleconomyingeneral.Inourview,thesearetwofundamentalelementsforunderstandinghoweconomicscanbereconnectedtosocialvaluesandtothepursuitofthecommongoodasthefoundationofanew,ethicalmodelofpoliticaleconomy.TheworkundertakeninEcuadorforthearticulationandrealizationofasocialknowledgeeconomy3andtheaimsoftheNationalPlanhaveauniversalrelevanceandassuch,thecaseofEcuadorservesasavaluablespringboardandreferencefortheexplorationofaradicalalternativetoneo-liberalismasthegoverningparadigmforeconomicandsocialdevelopment.

WhileEcuadorwastheinitialreferenceforthiswork,inthisbroadercontext,weexaminehowboldpublicpolicycanplacethesocialeconomyinacentralrolefortransformingtheproductivematrixofacountry.Whetherwearespeakingoftheprovisionofhumanandsocialservices,orofthematerialproductionofgoodsandservicesinthecommercialeconomy,wearguethatwithintheprevailingneo-liberalparadigmthelogicandorganizationofthesocialeconomyisfundamentaltoanymeaningfultransformationofanation’seconomicstructure.Assuch,thesocialeconomyandthePartnerStateappearascentralelementsinanytransitiontoaCommonsandCo-operative-BasedEconomy.

Incontrasttoneoliberalism,inwhichcapital(withthehelpofcompliantgovernments)underminesanddisplacesthestatethroughthecolonizationandprivatizationofthepublicdomain,weexaminehowgovernmentscanstrengthenthesocialeconomythroughthecreationofpoliciesthatreinforcethecivicprinciplesandpurposesthatarethebasisofpublicgoodsandservices.

InEcuador,wherethestateisplayinganincreasingroleinthenations’bodypolitic,thisrequiresawhollynewrelationshipbetweenthestateandcivilsociety.Itisarelationshipthatembodiesfundamentalprinciplesofsharedpower,ofcollaborationandco-constructionofpublicpolicy,andthecreationofnewinstitutions

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capableoftransitioningtoamodelofPartnerStateinwhichthestateistheenablerandpromoterofcivicvaluesandthecommongoodastheprimaryaimsofgovernment.Butthesearealsoprinciplesthatapplyequallytocountries–manyofthemintheindustrializednorth–inwhichthestateisbeingdiminishedandwherepublicservicesarebeingprivatizedandcolonizedbycapital.

Acentralpurposeofthisstrategyistoalsoaddressthedependenceofcivilsocietyinstitutionsongovernment.Thisisespeciallytruewithrespecttotheproductionofhumanandsocialservices.Inthisarena,anddespiteitsformaldistinctionsfromthestate,thesocialeconomyremainsadependentsector–inmanywaysaclientsectorofthestate.Atatimewhengovernmentsinmanycountrieshaveallbuterasedthedistinctionsbetweentheprivateandpublicsectors,thiscontinuingdependenceisafatalweaknessthatallowscapitalintereststocontinuetheirdominationofpublicpolicyandtoperpetuateaneconomicsystemthatissubservienttotheseinterests.Thisisonereasonwhyspecialattentionispaidtothevitalareaofsocialgoodsandservices.

Thisisnottosaythatsocialeconomyenterprisesoperatinginthecommercialeconomyaretobeignored.Socialeconomyenterprisessuchasco-operativesareabsolutelyvitaltotheeconomicinterestsofsmallproducersintheagriculturaleconomy,toartisansandcrafters,tocommunity-basedfinancialservicessuchascreditunionsandcommunitybanks,andincreasinglytotheemergenceofimmaterialgoodsandservicesprovidedbydigitaltechnologythroughtheoperationofpeer-to-peernetworksthatarealsobasedonco-operativeandcommonsvaluesandpractices.

Oneofourkeyargumentsisthatifthesocialeconomyistomatureasanindependentsocialandpoliticalforce,thenatruesocialmarketcorrespondingtotheuniqueroleofthesocialeconomyasaforcefordemocratizingtheeconomyisfundamental.Onlyinthiswaymighttheoverwhelmingpowerandinfluenceofthecapitalistmarketbebroughtintobalancewithcivicvalues.Astrongandautonomoussocialeconomybasedonreciprocity,mutuality,andcivicvaluesmakespossiblealsothepoliticalpowernecessarytonegotiateanewsocialcontractforapostneo-liberalage.

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TowardaNewParadigm–BeyondtheWelfareState

Intheglobalsouth,thequestionsconcerningthetraditionaloperationsofthewelfarestatearequitedifferentfromthoseoftheindustrializednorth.Foraverylongperiodoftime,countrieslikeEcuadorsufferedfromaweakstateinfrastructurethatwasunabletoprovidethekindsofsocialservicesthatcitizenshadcometoexpectintheindustrializedstates.Theideaofthewelfarestatewasstillawork-in-progress–somethingtobeaimedforinthefutureasopposedtobeingdismantledinthepresent.

Inthesecases,wherenationaleconomieshavebeengrowing–alongwithstateinstitutions–thesituationisoftenoneofgrowingstateinterventionandinvolvementinthepubliceconomy.Ineducation,inhealthservices,intheprovisionofsocialsecurity,governmentshavedevelopeduniversalpublicservicesthatwereneveravailablebefore.Inthesecases,thechallengeslieratherwiththestatistformsoftheseservicesandtheweaknessesinherentinapurelystatistconceptionofsocialcare.

Whatwearearguingisthatratherthanrepeatingthemistakesofmassproductionstatewelfaresystemsofthemid-20thcentury,thatanewformofsocial economywelfarismcanbedevelopedwhichtakesfurtherthesocialinnovationsdevelopedbysuchjurisdictionsasItalyandQuebec.Thereisanopportunityheretocreatenewmodelsofsocialwelfarethatlearnfrom,andmovebeyond,theweaknessesoftheoldstatiststructures.Health,education,andotherformsofsocialwelfareareallopentomoreresponsive,moreflexible,andultimatelymoreeffectiveformsofcarewhencoupledwiththeuntappedpowerandpotentialofthesocialeconomy.

Theapplicationofsocialeconomyprinciplesandpracticessuchasreciprocityandco-operation,andtheemergenceofdemocratic,distributed,anduser-controlledsocialcaresystems,mayallownationstatestomovetoanewconfigurationofsocialwelfare–thatofthePartnerState–whichreinforcestheriseofcivilnetworks,supportsnewformsofsocialinnovation,andrecognizesthecentralroleofcivilsocietyinpromotingthecommongood,especiallyinthe

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areaofsocialcare.

Bothintheindustrializednorthandthe“developing”south,thestewardshiproleofthestateisundersiege.Thecolonizationofpublicandsocialspacebycapitalinthenorthisoneoftheeffectsofshrinkingopportunitiesforprofitmakingintheprivatesector.Inthesouth,andnowinthedebt-riddenregionsofsouthernEurope,itisalsothemethodbywhichglobalcapitalanditsinstitutions(e.g.theIMF)imposeausterityonnationaleconomiesbydismantlingthepubliceconomiesofthesecountries.Attheverymomentwhenweakeconomiesandrisingunemploymentdemandastrongsocialsafetynet,publicservicesarebeingturnedintosourcesofprivateprofit.Withgovernmentsaswillingpartners,theprivatizationofpublicgoodsandthemonetizationofsocialcarenowbeckonasanewfrontierfromwhichprofitsmightbewrung–fromtheprovisionofhealthcareandcleanwater,totherunningofeducationsystemsandprisons.

Itisquiteclearhowtheinstitutionsofprivatecapitalmightinvestin–andprofitfrom–whatwereoncepublicservices.Whatisfarfromcleariswhethertheinstitutionsofthesocialeconomyareequippedtorespondtothisnewreality.Themarketfailuresinhumanservicesinboththeprivateandthepubliceconomiesarenowarguablythecentralpublicpolicyissueofmodernsocieties.Itisforthisreasonthatwefocusmuchofourdiscussionbelowonthisquestion.

Howmightgovernmentsrespondtothisdilemma?Cantheyfostercivicsolutionsthatprovideanalternativetotheprivatizationofsocialgoodsontheonehand,andthestiflingeffectsoftop-downstatismontheother?Howmightthesesolutionsbefashionedtoreflect,andreinforce,thosesocial-servingvalues,operations,andprinciplesthatarethegreateststrengthofthesocialeconomyitself?

Finally,howmightthesocialeconomyenlargeitspresenceandinfluenceinthebroadercommercialeconomy?Howdosocialeconomyenterprisesacquiretheresourcesandskillstheyneedtoflourishwithinanovertlyhostileenvironmentdominatedbyprivatecapital?Howdotheybuildontheirsuccessesandscaleupandout?Andfinally,howdotheycapitalizeonthenewlogicofnetworks,

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distributedproduction,anddigitaltechnologythataresoconsonantwiththeirinherentsocialvaluesandstrengths?

Thecreationofwhatwemaycallasocialmarketforthesepurposes,andthedevelopmentoffreeandopenknowledgesystemsthatservethem,isessentialtothistask.

TheSocialEconomyandtheSocialMarket

Theriseofinterestinthesocialeconomyhasalsogivenrisetoaninterestinmeasuringitseconomicvalueanditsrelativesizewithinthebroadereconomy.InEcuador,accordingtotheInstituteforSocialSecurity,thesocial/solidarityeconomycomprises25.7%ofthenation’sGDPand48.9%ofemploymentgeneratedinenterprisesoffewerthan11employees.AstudybytheDGRV(Cruz,2003)alsoshowsthatin1999-2002,thecurrentportfolioofcreditunionsexperiencedagrowthof384.73%comparedto49.94%forthebanks.4Thesefiguresareimpressiveandhelptogaugekeyaspectsofthesocialeconomy.Butwhileappropriateforthemeasureofcommercialexchange,thedeterminationofvaluesolelyonthebasisofcommercialprinciples–ofmonetaryvalue–isantitheticaltothecharacterandneedsofthesocialeconomy.Adifferentvaluationisrequired.

Thepurposeofthesocialeconomyisnotprimarilyabouttheproductionandexchangeofgoodsandservicesinpursuitofprivateends,orofmonetaryvalue–butratherthecreationanduseofsocialrelationsfortheproductionofsocialvalue.Thisistruewhethersocialeconomyorganizationsareproducingsocialgoodsandhumanservicesorwhethertheyareengagedincommercialproductionwithinthemainstreameconomy.Itisthesocialaimsandcollectivenatureoftheseenterprisesthatdistinguishthemfromcapitalistfirms.Socialvaluesareembeddedinthestructureoftheseorganizationsandamarketforthecreationofsocialvalueisnotthesameasamarketforcapitalistaccumulation.Whatthenisamarketforsocialvalue?

Inmostcountries,thecharacterofsocialeconomyorganizationsandtheirroleinsocietyisimplicitlyacknowledgedasdifferentfromthatofprivatebusinessesandrequiringadifferentapproach.For

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example,governmentsprovidetaxsupportstosocialeconomyorganizationssuchasco-operatives,non-profitsandcharitiesbecausetheycreatesocialbenefitsthatareworthsupportingandareinthepublicinterest.

Aroundtheworld,theprincipleoftaxexemptiontonon-profitsiswellestablished.Traditionally,theworkofthesesocietieswasconceivedasrelievingaburdenthatwouldotherwisebebornebythestateforsuchthingsasprovidingrelieftothepoor,runninghospitals,caringforthevulnerableandindigent,etc.Inreturnfortheseservices,thestatecompensatedsocietiesthroughanexemptionontax.Butitwasalsoaconditionoftheexemptionthatnoprofitscouldberetainedbythesocietynordistributedtoitsgovernorsormembers.Thisistheconstraintonthedistributionofprofitsthattodaydefinesnon-profitsunderlegislationthatgovernstheiroperation,asisthecaseinEcuador.

Butinanagewherethesophisticationandcomplexityofsocialeconomyorganizationsextendsfarbeyondsimplecharitymodels,andwherehybridmodelssuchassocialenterprisesandcommunitybenefitcompaniesemploymarketmechanismstopursuesocialgoals,theoldtaxexemptionsbasedonconstraintstothedistributionofprofitarewhollyinadequate.Theyfailtocaptureboththerealityandthepotentialofthesocialeconomyasaneconomicspheredeservingequaltreatment,onitsownterms,tothatgrantedtheprivateandpublicsectors.Theyalsoperpetuatethefalsenotionthatthegenerationofprofitisincompatiblewiththepursuitofsocialbenefit.

Thereasonforthisisthatprofitisstillconceivedstrictlyincapitalistterms,whichistosayasaprivategood.Butwhatofprofitthatisasocialgood,acollectiveasset,asinthecaseofco-operatives,whereitisdesignatedasa“surplus”?Therealquestionisnottheissueofprofitbutratherthepurposesforwhichthisprofitorsurplusiscreatedandutilized.Recognitionofprofitasasocialassethasparadigmchangingimplications–notonlyforthesocialeconomybutalsoforhowthepublicinterestisdefined,developedanddefended.

Oneofthekeytasksbeforeusinthisageofunfetteredprivatization

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ishowtoreversethecolonizationofthepublicdomainbycapitalandinstead,tofosterandexpandthesocialcontrolofcapitalforthecommongood.Thisistheessentialattributeofthesocialeconomy–itssocialcharacterandtheembeddednessofmarketexchangeswithinanetworkofsocialrelationsthataredrivennotbytheprivateinterestsofthecapitalistmarket,butbythecollectiveandmutualistaimsoffriends,neighbours,communitiesandsocietyasawhole.

ANewApproach

Whatareneededaresocialandeconomicpoliciesthatrecognizethesocialandmutualfoundationsofthesocialeconomyasadistinctparadigmthatrelatessocialprinciplestotheeconomy,toresourceallocation,andtoanewunderstandingofwealthcreation.Anation’ssocialeconomycontributestothesocializationanddemocratizationofmarketsandtheeconomyandisakeyforcefortransformingtheproductivematrix.Inshort,thesocialeconomyisauniquespacewithitsownrequirementsandinneedofinstitutionsthatreflectthelogicandaimsofitsoperations.Thisentailsaholisticandintegratedapproachtosocialeconomydevelopmentandthecreationofwhatmightbecalledan“ecosystem”ofinstitutionalsupportsanalogoustotheexistingecosystemofcapitalistinstitutionsthatservicethecapitalisteconomy.

Withrespecttotheproductionofsocialorrelationalgoodsandservices,thereisalsoanurgentneedtounderstandandtoconstructatypeofsocial marketthatsupportsandvaluestheproductionandexchangeofsocialrelationswithoutturningthemintocommoditiesasisthecaseincapitalistmarkets.

Onwhatbasiscouldsuchapolicy,andsuchamarket,operate?Theanswerliesinthesocio/economicprinciplesthatlieattheheartofsocialeconomyorganizationsandofthesocialeconomyasawhole–reciprocity, mutualityandsocial benefit.

Unlikethedriveforprivateprofitthatanimatesthebehavioroffirmsintheprivatesector,social economy organizations are animatedby the principles of reciprocity and mutuality for the pursuit of collectiveeconomic and social aims, largely through the social control of capital.

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Reciprocityandmutualityinpursuitofsocialaimsdefineboththeactivitiesandtheaimsofsocialeconomyorganizations-whethertheyareco-operatives,volunteerorganizations,orsocialenterprises.Theirprimarypurposeisthepromotionofcollectivebenefit.Theirproductisnotjusttheparticulargoodsorservicesthattheyproduce,buthumansolidarityandsocialcapital.And,asopposedtothecapitalistprincipleofcapitalcontroloverlabour,reciprocityandmutualityarethemeansbywhichasocialinterest-whetherittakestheformoflabour,orcitizengroups,orconsumers–canexercisecontrolovercapital.

Withrespecttopublicservicesandsocialgoodsthekeyquestiontherefore,isthis:

How can reciprocity and mutuality be actualized as institutional forces toprovide for the human services that are not being met by government or theprivate sector?

Taxation,CapitalFormation,andSocialBenefit

Oneofthekeyideasweproposeisthecentralrolethatsocialmarketsplayinpreservingandexpandingthesocialeconomy’srolewithrespecttosocialgoods.

Thecreationofsocialmarketsentailstwothings:allowingsocialeconomyorganizationstoraisecapitaldirectlythroughtheissuanceofsocialcapitalsharesorthroughtheuseofsocialcurrencies,andthedevelopmentofasocialmarketexchangethatfunctionsasaparallelinstitutiontothestockmarketforcapital,exceptforusebythesocialeconomy.Boththeseconceptsareexploredmorefullybelow.

Butthefirstpointtobemadeisthatofallthechallengesthatimpedethegrowthandpotentialofthesocialeconomy,thedifficultyinaccessingandcontrollingcapitalissurelythemostcrippling.Solvingthisproblemisthereforeessentialforalltypesofsocialeconomyorganizations,whethertheyoperateinthefieldofhumanandsocialservicesorinthecommercialeconomy.

Therearemanywaysthatpublicpolicycanexpandthecapacityof

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socialeconomyorganizations.Rethinkingandreformingtaxpolicyisamongthemostimportantandthemostpotent.

SocialGoods

Onelineofapproachistoprovidetaxbenefitsandexemptionstoinvestmentsinsocialeconomyorganizations.Butthereisastrongcaseforextendingthesebenefitstocontributionsmadebysupporters–whetherassociationmembersorothercommunitymembers–toanyorganizationwhoseprimarypurposeistheprovisionofasocialgood.

Itisessentialthatnon-profitsandawiderangeofsocialenterprisesbeabletogeneratecapitalfortheirservicesthroughtax-exemptcontributionssourcedfromwithincivilsocietyitself.Notonlywouldthedependenceofsocialeconomyorganizationsonthestatebemitigated,buttheperpetualrationingofcapitalduetothesocialeconomy’sdependenceonstatefundingcouldalsobelessened.Butforthistohappen,theideaofnon-profitsasorganizationswhosegoalsareincompatiblewiththegenerationandutilizationofcapital(profit)hastobeleftbehind.Itisarelicofafalseunderstandingofprofitasaprivategood,andassociatedwithanequallyoutmodedunderstandingofmarketsasexclusivelycapitalist.

Allenterprises,whethercommercialorsocial,mustgenerateaprofit(orsurplusinthecaseofco-operatives)iftheyaretosurvive.Thequestionis:towhatpurposeisthisprofitorsurplusput?Isitprivateorisitsocial?Thecaseofco-operativesclearlyshowshowprofitcanbeasocialgoodaswellasaprivateone.

Co-operativesareaformofsocialeconomyorganizationwhosesurplusiscollectivelyownedandutilizedbyitsmembersfortheirmutualbenefit.Whennon-profitsgenerateasurplusthatisthenreinvestedinservicestocommunitythistoo,isprofittransmutedintoacommongood.Andjustasprivatecapitalisbentonprivatizingsocialwealth,soshouldthesocialeconomybefocusingonwaystosocializecapital.

Asocialeconomyunderstandingofthemarket,andofprofit,makesitpossibletorethinksocietylegislationsoastoallownon-profitsto

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issuesharestoraisecapital,toaccumulatecapitalintheformofundistributedreservesforthepursuitofsocialends,andtoinvestinothersocialeconomyorganizationsandinstitutionsthathavethesamepurpose.Thedevelopmentofthekindsofsocialpurposecapitalthatarenowpossibleinthecaseofco-operativesshouldbeextendedtothewholeofthesocialeconomy,withtheprovisothattheirusebetransparentanddemocraticallyaccountabletocontributorsandserviceusers.

Thisisessential.Withoutsuchaccountability,thereistheriskthatcapitalaccumulatedbyanorganizationforsocialpurposesmayultimatelybeusedtopursueprivateinterests–asissometimesthecasewithnon-profitsthathavenostructureforaccountabilitytostakeholders.What is central in protecting the pursuit of social ends is notthe conventional prohibition on the accumulation and distribution of profit,but rather the social constraint imposed by democratic accountability forthe use of that profit.Itisexactlythesameprinciplethatservestoprotectthepublicinterestwhenappliedtothetaxingandspendingpracticesofthestate.

LetusnowexamineacasestudyfromJapanthatillustrateswellthemainpointswearemakingwithrespecttohowsuchasystemmightworkwithrespecttotheprovisionofsocialgoodsandinparticular,theuseofsocialcurrenciesforthispurpose.

CaseStudy–FureaiKippu,Japan

Japancurrentlyhasthemostnumerousanddiverseformsofsocial,orcomplementarycurrenciesinuseintheworld.5Therewereapproximately258complementarycurrenciesinuseacrossJapanin2008.

FureaiKippuisareciprocity-basedtimebankingsystemthatwasdevelopedover40yearsagotoprovidecarefortheelderly.FureaiKippuliterallymeans“TicketforaCaringRelationship”andreferstotheticketorcreditthatisearnedwhenonevolunteerstheirtimehelpingseniors.AccordingtothefirstpublishedresearchinJapanesein1992,FureaiKippuis:

Agenerictermforvarioustime-basedsystems,suchasTime

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Deposit,PointDeposit,LabourBank,etc.…wherememberscanearntimecreditsorpointsforthehourstheyvolunteer,providingphysicalcare,homehelpandemotionalassistancetothecare-dependentmembers.Thesecreditscanthenberegisteredbythehostorganizationandsavedintheirpersonalaccounts.Timecreditholderscanwithdrawandusetheircreditstobuycareforthemselvesorrelativesasrequired(SawayakaWelfareFoundation(SWF),1993).

FureaiKippuadherestoastricttimebankingmodelwhichtracksandthenreimbursesvolunteertimeonthebasisofearnedcredits.Howevertherearevariationsinhowbankedtimeisreimbursed.Thetraditionalmodelisonethatisstrictlyreciprocalandwhereearnedcreditsareredeemedinreceivedservices,eitherforoneselforforone’srelatives.Asecondmodelalsoincludestheredemptionofvolunteertimethroughacombinationofearnedtimecreditsandcash.Inbothmodels,dependentusersofservicesmaypayasmalluserfeeiftheyareunabletoearntimecreditsbecauseofillhealthorincapacity.Theseuserfeesarepaidtothehostorganization,whichinturncanofferacashpaymentincombinationwithtimecreditstovolunteers.

Liketimebankingstudieselsewhere,(Seyfang,2004;Collom,2007;Ozanne,2010),FureaiKippugeneratesanumberofpositiveimpacts,inadditiontotheobvioussocialbenefitofofferinganeffectivemeansofprovidingcaretotheelderly.Theseincludebuildingpersonalrelationshipsandexpandingsocialconnections,improvingthementalandphysicalhealthofparticipants,promotingmutualityandresponsibilitywithrespecttothecareofvulnerablepeople;andhelpingtocreateamoreequalrelationshipbetweencaregiversandrecipients.6Moreover,thesystemoffersacivilmodelofcarethatismorecost-effective,flexible,andhumanethanexpensive“top-down”modelstypicallyassociatedwithstatecareprovision.

TheFureaiKippumodelisnotwithoutitsproblems,however.Oneofthesehastodowithdesigningreciprocalexchangesystemsthateffectivelymatchearnedcreditstoservicesreceived.InthecaseofNALC,during2010atotalof12,367volunteermembersassisted3,126dependentmembers,earning198,091creditsintotalwhile

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onlyredeeming10,548(5%).Thebalancewasredeemedbyuserfeesorbytheorganization(thesewerepaidinreturnfornon-personbasedactivitiesorworkfortheorganizationsuchasofficeworkortraining).Overtime,atotalofnearly1.7millioncreditshavebeenaccumulatedinindividualmembers’accounts.Userfeesarethusakeymeansofguaranteeingameansforvolunteermemberstoearntheirtimecreditswhileallowingdependentmemberstopurchaseservicestheycannototherwiseearn.

Meanwhile,thesystemhasadaptedtothechallengeofmatchingtimecreditstoservicesbyexpandingthewaysinwhichreciprocalexchangescanbemade.Unlikethetraditionalmodelwherecreditsareexchangedforelderserviceswithinthehostsystem,eitherlaterinlifeforoneselforcurrentlyforone’srelatives,anew“horizontal”systemofexchangehasbeendevelopedinwhichtimecreditsmayberedeemedinashorttimeframeinexchangeforsuchservicesaschildcareandarangeofotherlocalservices(museums,recreationalfacilities,cashvoucherswithlocalbusinesses,etc.).Thisallowslocalmunicipalitiesandlocalbusinessestosupportthesystemwhilepromotingbothcommunitybuildingandthelocaleconomy.Timecreditsmayalsobeusedtopayforthemonthlyinsurancepremiumsofthestateeldercaresystem.Finally,unredeemedcreditsmaybedonatedtoasharedpoolforusebythosewhohaven’tthemeanstoaccessservicesotherwise.

WhiletheFureaiKippusystemisnotapanacea,themodelisasuccessfulcomplementtoformalstatecaresystems.Itisakeyreasonwhygovernmentsatbothlocalandfederallevelshavesupportedthesystem,includingstateeffortstorecruitvolunteersfortheprograms.Startingin2009,YokohamaCitynearTokyoattractedover4,000volunteersinasingleyear,largelyduetotheschemethatallowsmemberstoexchangetimecreditsforservicesotherthaneldercare.

Moreover,withtheprovenvalueofFureaiKipputothecommunitiesitservesandtostateeffortstoprovidecaretoitsageingpopulation,themodelhasbeenreceivingseriousattentionforapplicationincountriesliketheUKwherecivilalternativestostatesystemshavebecomeapriorityforgovernment.

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Lessons

AkeylessonprovidedbyFureaiKippuinJapan,isthatreciprocityandmutualismcanbevaluatedinstrictlysocialasopposedtomonetaryterms.Timebankingisoneapproachthatcontinuestooffernon-commercialsolutionstotheprovisionofsocialservices,especiallyifthesearecomplementedbytheroleofthestate.FureaiKippushowshowareciprocity-basedsystemrootedinlocalcommunitiescanworkwithstatesystemstoformthebasisofpublic-civilpartnershipsthatofferanalternativetotheprivatizationandcommodificationofwhatshouldremainsocialrelationshipsofcaring.

ThereisnoreasonwhyvouchersorothermechanismsforplacingmarketpowerinthehandsofcitizensshouldbeassociatedexclusivelywiththepoliticalRight–astheyare.Theuseofmarketpowerforsocialcareisjustasamenableforsociallyprogressivepurposesif the market in question is structured around civic principles.Marketsarenotnecessarilycommercial,orcapitalist,andthesoonerthisisunderstoodthesoonersocietycanaddressthecontradictionbetweensocialgoodsontheonehandandchronicallyunderfundedandantisocialdeliverysystemsontheother.

Governmentsandcivilsocietymustbothgrapplewithhoweconomicscanbemadetoworkforcivicpurposes,andthecreationofsocialmarketsisessentialtothis.Innovativetaxpolicyisalsocentraltothisaim.

Whatwearetalkingaboutisthecreationofaninstitutionalsocialmarketthroughtheformalvaluationofsocialgoodsandthecapitalizationofthesegoodsdirectlybycitizensandthepromotionofinformalsocialmarketsthroughcommunitarianmechanismslikesocialcurrenciesthatbothvaluateandexpandreciprocityandsocialcapitalintheprovisionofsocialgoods.The state retains a central rolehowever, as co-funder and facilitator of these systems.

Tobeclear:thisisnottoadvocateforthecommodificationofsocialrelations,norisitthepromotionofatomizedandutilitarianrelationsinplaceofsocialonesasisnowthecasewithprivatization.Rather,weareproposingformsofsocialcurrencythatactas

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mediumsofcirculationfortheexpansionofanewkindofsocialrelationshipbetweenproduceranduserbasedonthereciprocalandmutualcharacterofsocialrelationsthatarecharacteristicofthesocialeconomyitself.

TheSocialMarketExchange

Whatwouldsuchasocialmarketexchangelooklike?Therearecurrentlyanumberofsocialstockexchangesandtheyallshareacommonfeature:theabilitytoinvestinasocialenterprisethroughthepurchaseofsharesthatyieldalimitedreturntoinvestors.Thisisoneapproach,andsolongasreturnsarenotspeculativeandcontainedbyclearsocialprioritiestheycanbeakeysourceofneededcapital.Otherwise,returnstoinvestorsforsupportofsocialenterprisemovesawayfromreciprocityandtowardacapitalistconceptionofsocialinvestment.7Bycontrast,whatweareproposingissomethingthatvaluesbothcontributionandreturnintermsofreciprocity.Thisisthereasonweusethetermcontributorasopposedtoinvestor.

Whatdoesthisentail?First,itwouldmeantheextensionoftaxexemptionsandbenefitstocontributionsthatsupportthecreationanddistributionofsocialgoods.Inthisway,theprovisionofataxbenefittosocialcontributorsacknowledgesthekeynotionofapublicbenefitcompensatedbythetaxsystemonthereciprocityprinciple.Italsoembodiesthefundamentalprincipleofpublicresponsibilityforsocialcareasacivicright.Thisiswhattaxesshoulddo.Butinaddition,thereneedstobeare-alignmentofpowerswithrespecttocontroloverthedesignanddeliveryofsocialcareitself.Anumberoffactorsseemessential.

Thefirstrequiresshiftingtheproductionofsomesocialcareservicesfromgovernmenttodemocraticallystructuredcivilinstitutions.Governmentwouldretainitsroleasaprimefunderfortheseservicesandfortheregulationandoversightthatisnecessarytoprotectthesocialcharacterandpublicinterestentailedintheseservices.Thefirstpartofthisequationisalreadywellunderway.Governmentshavebeenunloadingsocialservicestoprivateandnon-profitprovidersforovertwodecades.Itisthesecondaspect,

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theneedforusercontrolandserviceaccountabilitythatislacking(astoo,isthefunding).Socialservicesthatreceivepublicfundingandarenotunderthedirectcontrolofthestateshouldbeconveyedonlytothoseorganizationsthatprovidecontrolrightsoverthedesignanddeliveryofthoseservicestousers.

Thisappliesequallytonon-profitandfor-profitservices.Examplesincludeorganizationsthatprovideeldercare,familyservices,servicestopeoplewithdisabilities,orchildcare.Moreover,thoseservicesthatremainunderstatecontrol(socialsecurity,publicpensions,publicautoinsurance,publicschools,healthcareservices,etc.)shouldbedemocratizedthroughtheprovisionofcontrolrightstousers.

Second,governmentfundingshould,atleastinpart,flowdirectlytosocialcarerecipientswhowouldthenselecttheservicestheyneedfromaccreditedorganizationsoftheirchoice.Toqualifyforreceiptofpublicfunds,theseorganizationsmusthaveprovisionsforusercontrolintheiroperations.Inaddition,fundsmustbemadeavailablefortheorganizationofindependentconsumer-runorganizationstoassistusersandtheirfamiliesintheidentification,evaluation,andcontractingofservicestotheirmembers.Thisiscrucial,especiallyinthecaseofusersthathaven’tthemeans,orthecapacity,toadequatelyselectandcontractservicesontheirown.

Third,socialcareorganizationsmusthavethelegalabilitytoraisecapitalfromamongusersandfromcivilsocietyingeneral,onthebasisofsocialinvesting.Bothusersandcommunitymemberswouldbeabletopurchasecapitalsharesforthepurposeofcapitalizingtheassociation.Asasocialinvestment,theseshareswouldyieldaprescribedvalueinservicestoinvestorsbutunlikeconventionalsocialinvestmentmodels,investorcontrolwithintheassociationwouldbelimitedtoensuredemocraticcontrolbymembers.Associalinvestmentsthesecapitalassetswouldnotbetaxed.

Fourth,surplusesgeneratedbytheseorganizationsshouldbeconsidered,atleastinpart,associalassets.Allsocialcareorganizationsreceivingpublicfunds–whetherintheformofvouchersordirectpaymentsfromgovernment–wouldestablishanindivisiblereservefortheexpansionanddevelopmentofthat

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organizationanditsservices.8Aportionofoperationalsurpluswouldalsohavetobeusedforthepartialcapitalizationofasocialmarketexchangethroughthepurchaseofsharesintheexchange.

Socialcapitalizationrequiresthecreationofasocialmarketbasedonreciprocityandmutuality.Forexample,individualcontributorscouldpurchasesharesyieldingamonetaryvaluethatisredeemedthroughtheuseofasocialgoodorserviceprovidedbyanyoneoftheaccreditedorganizationsinthesystem,asintheexampleofFureiKippu.

Amechanismformediatingtheissuanceofsocialvouchersontheonehandandtheirredemptionontheotherneedstobeestablishedtobalancewhatsomeorganizationsreceiveincontributionsandothersredeeminservices.Thecreationofacollectivecapitalpooltohelporganizationspayforredeemedsharesmightbeonewayofmanagingthis.Thecollectivepoolwouldbecapitalizedbythecontributionsofparticipatingorganizations,andmayincludecontributionsofsupportingindividuals.Asocialcapitalexchangeofthistypegeneratesanindependentsourceofcreditandinvestmentcapitaltosocialeconomyorganizations,inadditiontowhattheywouldreceivefromthestate.Shareswouldbeeligiblefortaxcreditsonthebasisthatsuchcontributionshaveaclearanddirectsocialbenefit,aswouldacapitalpool.

Inthesemodels,theprimaryroleofgovernmentwouldbetocontinuetoprovidepublicfundsforsocialcareservicesandtoestablishtherulesofthesystem.Inpartnershipwithservicedeliverers,caregivers,andusers,thestatewouldregulateandmonitorservicedelivery,establishservicestandards,licenseserviceproviders,andenforcelegalandregulatoryprovisions.

Finally,thelocusofservicedesignandthedesignationofserviceneedswouldtakeplace,asmuchaspossible,atthecommunityandregionallevelofdelivery.Thisrequiresthecreationofcivilandmunicipalassociationsofpublicandcommunitystakeholderstoensuretheaccountabilityofservicesandtheflowofinformationnecessaryforeffectivebudgeting,servicedesignanddelivery.

Thedevelopmentofopenknowledgesystemswherebydataand

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informationistransparent,open,andfreelyaccessiblebycitizensandsocialeconomyorganizationsisaconcretewayinwhichasocialknowledgeeconomycanbelinkedtotheoperationsandsocialaimsofsocialeconomyorganizations.

Mostimportantly,thisdecentralizationofservicedeliverymustincludethedemocratizationofdecision-makingthroughthesharingofcontrolrightswithserviceusersandcaregivers.ThisispreciselythesystemthatisinplaceinciteslikeBolognawheresocialco-opsandtheirfederationsdealdirectlywithmunicipalitiestodeterminetheserviceneedsofcommunitiesandtomanagetheirdelivery.

Awordofcautionhowever,mustbenoted.SuchpolicieshaveprovenhighlyeffectiveinthecasesofplaceslikeQuebec,Italy,andJapanbecausethereexistedfairlyhighlevelsofsocialcapitalthatwereinturnreinforcedbyaculturethatvaluedreciprocity.ThisisespeciallytrueofJapan,andhencetheFureaiKippusystembothreflectedandreinforcedthiscultureeventhoughtheredidnotexistalargenumberofnon-profits,aswasthecaseforexample,inQuebec.9InItaly,alongtraditionofco-operativeorganizationshelpedformtheinstitutionalfoundationfortheevolutionandspreadofsocialco-ops.

What this means in practical terms is that democratizing and de-centralizing policies from government are not enough.Whatmustalsobeconsideredistheeducationalandcommunitydevelopmentworkthatisneededtoprovidefortheongoingevolutionofthecivilinstitutionsandculturalattitudesthatformthebasisforthiskindofcivilandculturaltransformation.

Crucialtothisisthedevelopmentofmulti-stakeholderintermediariesthatcanactasinterlocutorswithgovernmentonbehalfofthebroadersocialeconomy.Ataservicelevel,multi-stakeholderorganizationsrepresentingdifferentstakeholdersandinterestscannegotiatecontractsandservices,co-ordinateorganizationandproduction,andsupportthesocialeconomyproviderswithcrosssectoraltraining,logisticssupport,collectivepurchasing,financing,etc.

Populareducationprogramstoraiseawarenessandunderstanding

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ofthisnewapproachamongcommunitiesarealsokey.And,asoutlinedinmoredetailbelow,thereisanurgentneedforhigher-levelacademicresearch,education,andprofessionaltrainingforbothcivilservantsandsocialeconomyactors.

APolicyEcosystem

Areviewofpublicpolicytrendsandinstrumentsforsupportingthesocialeconomyrevealsahighlydevelopedarrayofstrategiesdevelopedbymanycountries.

Mostimportantly,itiscrucialthatagovernment’ssocial,educational,developmental,andfinancialpoliciescombinetocreateanintegrated,yetdiversified,ecosystemofinstitutionalsupportsthattogethercreateanenvironmentwithinwhichthesocialeconomymightflourishthroughouttheeconomy.Theseintegratedprogramsmaybebroadlyorganizedalongfourmutuallysupportiveaxes:

1. TaxPolicyandPublicSubsidy2. FinancialSupportsandSocialInvestment3. CommunityEducation,Mobilization,andDevelopment4. Research,HigherEducationandProfessionalTraining

Ingeneral,theroleofgovernmentinadministeringtheseinitiativesmaybesummarizedasfollows:

a)Facilitatingtheco-constructionandco-implementationofnationalSocialEconomypolicythroughdirectcollaborationwithsocialeconomyandotherprimarystakeholders(e.g.municipalities,territorialgovernments);b)Directfinancialinjection(seedmoney,whichisalsoacreditenhancement)c)Investment(interestfreeloansforacertainperiodandpossiblyrenewed)d)Fiscalpolicy–taxmeasures/incentivese)Financialguaranteesf)Enablinglegislationandregulation

Manyoftheseinitiativeshaveprovensuccessfulinstrengtheningthecapacityofsocialeconomyorganizationstocontributetosocial

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wellbeingthroughtheproductionofmuch-neededsocialservicesandtheincreaseintrainingandemploymentthattheseservicesprovide.Inparticular,theuseofco-operativemodelsfortheprovisionofsocialcarehasyieldednotonlyanincreaseintherangeandqualityofservicesavailabletothepublic,butinjurisdictionslikeItalyandQuebecwherepublicpolicyhassupportedtheirdevelopment,socialco-opshavegeneratedahighproportionofthenewemploymentgeneratedbythesocialeconomy.

InQuebec,thegovernmentfunds85%ofthecostsofdaycareprogramsdeliveredbysolidarityco-opsandothersocialeconomyorganizations,makingthesectorthe4thlargestemployerintheprovince.10Solidarityco-opsinQuebecaccountforfully40%ofthehomecareservicesinthatprovince.InItaly,althoughsocialco-opscomposeonly2%ofnon-profits,theyareresponsiblefor23%ofjobsinthatsector.InBologna,87%ofthesocialservicesinthatcityareprovidedbysocialco-opsundercontracttothemunicipality.

Withinthebroadercommercialeconomy,socialeconomyorganizationslikeco-operativeshaveprosperedwhenaccesstobasiccapitalresources–ownedandcontrolledbythesocialeconomyitself–hasbeenbolsteredbyprogressivetaxpolicy,byenablinglegislation,byeducationandprofessionaldevelopment,andmostofall,bythesupportofrepresentativecivilassociationsthatcanidentifyandaddressthecollectiveneedsofthesector.Multi-stakeholderstructuresrepresentingabroadrangeofsocialeconomyactorshavebeenkeyinthisregard.

Insummary,thereisnoquestionthataconcerteduseofpublicpolicesbygovernmentcanhaveadecisiveeffectonthecapacityofthesocialeconomytoplayamuchenhancedroleintheprovisionofnewgoodsandservices,ingeneratingnewopportunitiesfortrainingandemployment,andinstrengtheningtheproductivecapacitiesofkeysectorsthroughtheuseofco-operativeandothercollectivesystems.

Butmorethanthis,thegrowthofacountry’ssocialeconomyalsolendstothediffusionofprogressiveideasandpracticesthatinturnreinforceaprogressivepoliticaleconomybothinthestateandinthebroadersociety.Thisisessentialforthepursuitand

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institutionalizationofthosevaluesthatwill,inthelongterm,bethefoundationforamoresociallyjustandequitablesocialorder.

PublicPolicyforaPartnerState

WhenthegovernmentofEcuadorintroducedtotheworlditsvisionaryconstitutionanditsboldplanforreframingthedirectionofdevelopmentaccordingtothepreceptsofasocialknowledgeeconomyandBuen Vivir,itheldopenthepossibilityofawhollynewconceptionofgovernanceandoftheroleofcitizensinbothdefininganddefendingthecommongood.

ThispaperexaminestheconceptofthePartnerStateinrelationtotheconceptofBuen VivirasproposedinEcuador’sNationalPlanforGoodliving.DrawingonboththetheoreticalandpracticalfoundationsofthePartnerStateasamodelofgovernance,thepaperarguesthattheproposedtransitiontoaneconomybasedonsocialknowledgeandtherealizationofBuen Vivirrequiresaradicalrestructuringofthestateapparatustowardadirectionofincreasedempowermentandmeaningfulengagementofbothcivilsocietyandeconomicagentsinthesmallfirmeconomyasprerequisitesforthistransition.11Inthiscontext,thePartnerStateispresentedbothasthenecessaryvehicleforthefulfillmentofBuen Vivirandastheculminationofthisprocess.TheideaofthesocialmarketisalsoadvancedasameansofenlargingthescopeofsocialeconomyactivitiesthroughouttheeconomyandasacentralaspectofaPartnerStateapproachtoempoweringcivilsociety.

JustasthevisionofasocialknowledgeeconomyandBuen Vivirrepresentaradicaldeparturefromneo-liberalism,sodoesthePartnerStaterepresentadeparturefromthestateasthecommandandcontrolapparatusfromwhicheconomicandsocialdevelopmentproceed.ThePartnerstate,inwhichactivecitizenshipforthecommongoodisadefiningfeature,isthepoliticalexpressionofasocietyinwhichknowledge,economics,andsocialpolicyareallinservicetocivicvaluesandthecommongood.

Atatimewhenmanyaresearchingforviablealternativestothe

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traditionalWelfareStateontheonehand,andtheemergingCorporateStateontheother,theideaofthePartnerStateisanewformulationinwhichthestateisboththeguarantorofpublicwelfareandthepromoterofcivicvalues.

ThroughoutLatinAmerica,therejectionofneo-liberalpoliciesbytheregion’selectoratehasbeenreflectedintheascensionofgovernmentsthatarereclaimingandresurrectingthestateasanindispensibleplayerineconomicandsocialplanning.ThisiscertainlytrueinEcuadorwhereaccordingtotheNationalPlanforGoodLiving,

Recovering the state and its role in planning, administrating, executing,distributing and redistributing has … been vital to guarantee and open upopportunities for participation by persons, communities, peoples andnationalities in order to formulate, implement, evaluate and oversee publicpolicies and public services.12

Thequestionthatneedstobeansweredhoweveris:whatkindofstatebestreflectsthesevaluesandprinciples?

ToachievethekindofsocietyenvisagedbytheNationalPlan,afundamentalreframingoftheroleofthestateisnecessary.AsstatedbyAnaRavegna,DirectorofEquityandPovertyReductionattheWorldBank,“Thisincludestheimplementationofstructuralpoliciesaimedatprovidingallmembersofsocietywithafarhigherdegreeofsocio-economicsovereigntyandpoliticalagencysothatcitizenshave“thewherewithaltooperatenormallyandproperlyin…societywithouthavingtobegorborrowfromothers,andwithouthavingtodependontheirbeneficence.”Accesstotheessentialsofaproductiveandrewardinglifearenotafunctionofmarketpowerbutratheroftherightsofcitizenship.Suchapolicyisalsoindispensibleforthedevelopmentofasocietythatisdecent,whichistosay,asocietywhoseinstitutionsdonothumiliateitsmembers.13Theemergenceofadecentsocietyisthusintimatelylinkedtothedemocratizationandhumanizationofitspublicinstitutions.

ThePartnerState14

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Initsevolution,theideaofthePartnerStateproceedsdirectlyfromtheprinciplethatcivilsocietyisthesourceofpoliticallegitimacyinademocracy.Inthisview,thestateisintheserviceofcivilsocietyasavehicletoadvanceandprotectthecommongood.

ThePartnerStateisanenablingstate.Itsprimarypurposeistomaximizethecapacityofcivilsocietytocreatesocialvalueandtoactasanequalpartnerintheformationanddeliveryofpublicpolicyforthecommongood.Theenablingroleofthestateisnotconfinedtothepromotionofsocialvalue.Italsoentailsthepromotionofopenaccesstotheeconomy.Itprovidesspaceformanymodelsofentrepreneurship,includingcollectiveandcommons-basedformsofenterprisesuchasco-operativesandpeer-to-peernetworks,andthepromotionofparticipatorypolitics.ThePartnerStateenlargesthescopeofpersonalautonomyandlibertywhilereinforcingthesocialbondsthatbuildhealthycommunitiesandavibrantcivilsociety.Centraltothisprocessisthedemocratizationofthestateitself.

Traditionally,thestatehasbeenviewedasthefinalarbiterfortheregulationandoperationofthreebroadeconomicsectorsinsociety–theprivatesector,thepublicsector,andthesocial/solidarityeconomy.Eachofthesesectorsoperatesonadistinctsetofeconomicprinciplesandvalues.Theprivatesectorutilizestheprincipleofexchangeequivalence(price)tocreateprofit–itsvaluesarewealthaccumulationandmarketefficiency;thepublicsector(thestate)usestheeconomicprincipleofwealthredistributiontoprovideforpublicgoods–itsvaluesareequity;thesocialeconomyutilizestheprinciplesofreciprocityandmutualitytopromotesocialaims–itsvaluesaresocialutilityandhumansolidarity,whethertheyoperateintheareaofsocialgoodsandservicesorinthebroadermarketeconomy.

Inmoderntimes,theregulatoryroleofthestatehashabituallyswungfromthepromotionofeithertheprivatesectorthroughsupportofthecapitalisteconomy,ortheredistributivefunctionofgovernmentthroughstatecontrolofeconomicplanning.Thefirstsubmitsthepublicandsocialeconomiestotherequirementsofcapital;thesecondsubmitsthecapitalistandsocialeconomiestotheneedsofcentralizedstateplanning.Bothmodelshavecomeat

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unsustainablyhigheconomicandsocialcosts.Andwhiletherehavebeenvarietiesofthesetwomodels,mostlyinsomecombinationofpublicandprivatedominance,therehasneverbeenaninstanceinwhichtheneedsofcivilsocietyandthevaluesofthesocialeconomyhavepredominatedinthestate’smanagementofeconomicandsocialpolicy.Intheoryandpractice,thePartnerstateisthefirststateformationtodothis.

Consistentwiththevaluesandoperatinglogicofthesocialeconomy,theuseofreciprocityandmutualityascentraltenetsofeconomicandsocialdevelopmenttransformsandre-orientsthestatetowardcivilsocietyastheprimaryengineforthecreationofsocialvalueforthecommongood.Withsocialvalues,equity,andsustainabilityatthefoundationofpublicpolicythePartnerStatealsore-orientstheroleofgovernmenttowardtheprivateeconomyandtheoperationsofthepublicsector.Theprivateandpublicsectorsstillretainessentialfunctionsinthenationaleconomyandinsociety.Theprofitmotiveandprivatebusinesscontinuetoplayarole.ThedifferenceisthatinthePartnerStatetherespectiverolesandpowersofthecommercialmarketandthepubliceconomyarecounterbalancedbytheprimacyofthecommongoodastheframeworkwithinwhichpublicpolicyisformulatedandenacted.

Theinstitutionsofcivilsocietyarethuscentraltotherealizationofthisvisionasisthedevelopmentofpublicpoliciesandpracticesthattranslatethisvisionintomeaningfulpoliticalparticipationfromtheleveloflocalneighborhoodstothedirectinginstitutionsofgovernmentitself.

Howthen,maysuchamodelbemadereal?Whatarethepoliciesandpracticesthatareessentialtoitsoperation?Wherearetheexamplesthatmayserveasmodels?

SocialEconomyandtheState

BeforediscussinghowaPartnerStatewouldoperate,wemustfirstconsidertheeconomic,cultural,andstructuraldifferencesthatdifferentiatethestatefromthesocialeconomy.Asoutlinedabove,thestateandthesocialeconomyaretwoverydifferenttypesofeconomy.15Thestateisstructuredintermsofbountiesandlevies

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anditsprinciplesourceofincomeistaxationthatisleviedonbehalfoftheentirecitizenry.Itsservicesaregenerallyfreeandadministeredthroughahighlycentralizedsystemofhierarchicalcontrol.Inarepresentativedemocracy,theoperationofstateservicesdependsonaladderofaccountabilitythatreachesfromthefrontlineworkerupthroughthedepartmentalhierarchytoaMinisterwhoisthenanswerabletoarepresentativeParliament,ordirectlytoaheadofstate.

Thisisasystemthatischaracterizedbyahighdegreeofcontroloverfunctionsandbehavioursandwhichhasabuilt-inbiasagainstuncertainty,innovation,andindividualinitiative.PowerisimposedandflowsfromtoptobottomandthelegitimateexerciseofthispowerrestsinternallywiththedesignatedmanagersofthecivilbureaucracyandtheMinisterstheyreportto,nottoexternalstakeholders,exceptasmandatedperiodically,andveryindirectly,throughthebroaderelectoralprocess.16

Theinternaleconomyofthissystemisbasedonthenegotiationoftaxordebt-financedbudgetsthatarebargainedoverbyasmallgroupofMinistersandseniorcivilservants.Themainformsofcontrolareoverexpendituresratherthanoutcomes(ordesires),andinsofaraspowerisexercisedthroughcontroloverbudgetsitisasystemthatencouragesexpenditureuptothebudgetallocated.

Thesocialeconomyoperatesverydifferently.AsRobinMurrayremarks,17whetheritinvolvessocialventuressellingintomarkets,orgrantbasedorganizations,orinformalassociationsofhouseholds,thesocialeconomyisimpelledbyastrongelementofenthusiasmandasenseofvocation.Itreliesonthewillingcontributionoftime,financeandideasinpursuitofanideaorsocialmission.Itisthequalityofthisideaandthecapacitytocommunicate,inspireinterest,mobilizeresources,andrealizetheideainpracticethatdeterminestherelativemagnetismoftheventure.Iftheideaormissiongrowsstaleand/orthehopeofitsrealizationebbs,thenthewillingcontributionsofcitizenswilldecline.Itisthiswhichactsasthediscipline–similarinsomewaystothedisciplineofthemarket–asagainstthedisciplinesofaccountabilityinrelationtobudgetsandpoliticalaimsthatcharacterizethestate.Thesocialeconomyismissiondrivenrather

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thancostcontrolledonthebasisofbudgets,asisthecasewiththestate.

Thestructures,labourcontracts,aims,andcultureofthetwosystemsfollowfromtheabove.Anditisthesedifferencesthatmakeeffectivepartneringbetweenstateandcivilsocietystructurallydifficult.Thediagrambelowhighlightssomeofthedifferencesthatneedtobeaddressedforapartnershiptofunction.

Features State Social EconomySize Largescale DistributedStructure Verticalhierarchy HorizontalCulture Rulebased/impersonal Entrepreneurial/affective

Accountability MediatedtaxpayersUnmediated,voluntaryenergy,civilstakeholders

Sourceoffinance

Tax Voluntary/dues/grants/market

Organizationalstability

Permanence Fluctuating/fluid

Relationalstability

Fluid Stable

KnowledgeAggregated/governmentthroughstatistics,controlled

Granulated,distributed,open

Atmosphere Routine,predictable Uncertain,exploratorySystem Stable Chaotic

Dynamic CostdriftSocialCapitalaccumulationandmissionachievement

Labour Structuredroles/unionsStructuredaroundcapacitiesandsocialvocationoflabourandvolunteers,nonunionized

Wagestructure

Unequal Egalitarian

Externalrelations

Transactional Generative

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Giventhesedifferences,itiseasytoconcludethataworkingpartnership–anewsocialcontractineffect–isimpossiblebetweenthestateeconomyontheonehandandthesocialeconomyontheother.Butthiswouldbetoignorethefundamentalcommonalityofpurposethatissharedbetweenthetwosystems.Bothareconcerned,andtheirlegitimacyisderived,fromacommitmenttosocialasopposedtoprivategoals.Inthisveryfundamentalsense,theyareextensionsofthesolidaryprinciplesthatconstitutetheoperationsandaimsofthebroadercivilsocietythatsustainsandvalidatesbothsystems.Inpursuitofthesecivilaims,thestateoffersstabilityandscalewhilethesocialeconomygeneratescreativityandsocialconnection.

Alllivingthingsandallsocialsystems,aswithallmatter,areadelicatebalanceoforderandchaos.Orderaloneleadstoentropy.Creativityaloneleadstochaos.Astatemodelbasedonpublic-civilpartnershipoffersthepotentialofachievingavitalityandefficacythateachsectoronitsownisunabletoachieve.Theartistoestablishadivisionoflabourthatcorrespondstotheaimsanddispositionsofthetwocultures.

Thestatehasthecapacitytobeasynthesizerandfacilitator,tosettherulesandprovideabasicflowofcorefundsthatallowsadistributedsystemofsocialenterprisestoflourish.Ithasthecapacitytoorganizelargeprojects,andatnationalscales.Initsnormativerole,ithasthemechanismstoreinforcebehavioursthatreflectabroadersocietalconsensus.Itrepresentsthegeneralinterest,howevermediateditsmechanisms.Thesocialeconomyontheotherhandisasourceofinnovation,ofdistributedproduction,andinparticularofrelationalproduction–somethingessentialtotheprovisionofhumanservices.Itisaspaceofpersonalandproductivedemocracyincontrasttothestate’srepresentativeanddeliberativedemocracy.Inaveryrealsense,thetwodomainsmanifesttherequirementsofcollectiveversuspersonalcitizenshipandeachisthenecessarycomplementtotheother.Anewsocialcontractmustbebasedonthisfundamentalframework.

Howthen,mightsuchapartnershipwork?Howcantheinterfacebetweenthesetwoadmittedlycontrastingeconomiesbemademorepermeableandproductive?Thefollowingdiscussionofferssome

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directions.

1.DemocratizationandCo-constructionofPublicGoodsandServices

Inthesection“PublicPolicyandtheSocialEconomy”,weexploredthekindsoflegalandpolicyinstrumentsthatarenecessaryforstrengtheningtheinstitutionsofthesocial/solidarityeconomysothatitisabletoplaytheroleofpartnerasenvisagedinthePartnerState.Chiefamongtheseare

1. Thedevelopmentofatruesocialmarketthatenlargesthescopeofthesocial/solidarityeconomyandofsocialeconomyorganizationsthroughouttheeconomy;

2. Thecreationofcivilandcommunity-basedinstitutionsthatmediatebetweengovernmentandindividualsforthecreationofsocialgoodsandservices;and

3. Theprogressivedemocratizationofpublicgoodsandservicesthroughthetransferofinstitutionalcontrolfromstatebureaucraciestodemocratically–governedcivicbodies.

Earlier,wealsohighlightedtheeconomic,social,andqualityoflifebenefitsthataremadepossiblebythedemocratizationanddecentralizationofpublicgoodsandhumanservices.18Withrespecttosocialcare,theseincludethereductionofservicecostsduetotheeliminationofbureaucracyandrent-seeking;theincreaseinservicequalityandserviceinnovationduetotheinvolvementofusersinthedesignanddeliveryofservices;theincreaseinself-esteemandpersonalempowermentforserviceusersthroughtheexerciseoftheircontrolrights;andmostimportantlythecreationandexpansionofcaringrelationshipsamongpersonsastheprimarypurposeandoutcomeofsocialcaresystems.

Neithertheprivatizationofsocialcare,whichinstrumentalizespeopleforthegenerationofprofit,northede-personalizationofcarebythestate,whichsubmitsindividualstotheimpersonalrequirementsofbureaucracy,arecapableofhumanizingcareorofrespondingadequatelytotherealneedsofindividualsandtheircommunities.Thecreationofcivilbodies,operatingatlocaland

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regionallevels,andprovidingamechanismwherebyindividualsmaydirectlydeterminethenatureofthecaretheyreceive,isoneindispensibleconditionfortheoperationofaPartnerStatemodelwithrespecttotheprovisionofsocialcare.Theotherisamechanismthroughwhichgovernmentandcivilinterestscancollaborateonthedesignanddeliveryofhumanservices,atlocal,regional,andnationallevels.

TheuseofsubsidiarityisthereforeakeyprincipleofinclusiveplanningiscentraltothereformofpublicservicesasadefiningcharacteristicofthePartnerState.Tothisend,specificprovisionsthatrecognizeandreinforcetheroleofsocialeconomyorganizationsinthedevelopmentanddeliveryofsocialcaretotheircommunitiesareofparamountimportance.

Theseprovisionswouldinclude:

Therecognitionofsocialco-opsandmulti-stakeholderstructuresasuniquemodelsfortheprovisionofsocialcare;Therecognitionandpromotionofmutualinterestsforservingthecommongoodbylocalpublicauthoritiesandsocialcareco-operatives,withparticularemphasisonsocialinclusionandservicetothemostvulnerable;Theimplementationoftaxandfinancingsupportsthatsupporttheoperationofsocialco-opsandothersocialorganizationsaskeypartnersintheprovisionofhumanservicesandtheadvancementofpublicpolicy;Thecreationoflocalandregionalcouncilsthatenablethecollaborationandco-constructionofhumanservicesthroughthejointparticipationofcivilandgovernmentalbodies;19

Thedevelopmentofparticipatorybudgetingandtheallocationofresources–includingfreeandopenaccesstogovernmentdata–fortheprovisionofhumanservicesatlocal,regional,andnationallevels.

AmongthebestexamplesofthisapproachtothedecentralizationanddemocratizationofhumanservicesistobefoundinItaly.20IntheItalianmodel,socialco-operativesworkcloselywithlocalgovernmentauthoritiestoidentifyserviceneeds,todesigntheprovisionofservices,andtonegotiatethetermsforthedeliveryof

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services,includingbudgetsandqualitycontrolmeasures.Theco-designanddeliveryofsocialcareservicesissupportedthroughasystemofsubsidiaritythatgrantslocalauthoritiesthepowertoidentifyserviceneedsandtocommissiontheprovisionoftheseservicesthroughaccreditedco-operativeorothernon-profitservicegroups.

Inthisway,theprogressivedemocratizationofhumanservicesentailsanewgovernancematrixthatmaximizescitizenparticipationinthedesignanddeliveryofhumanservicesatthoselevelsclosesttotheactualprovisionofcare.

Inadditiontofacilitatingapartnershipapproachatthelocallevel,thematrixmustalsoallowforefficientplanningandgovernanceofhumanservicesatregionalandnationallevels.Tothisend,weproposetheadoptionofviablesystemsmodels(VSM)thatmaximizelocaldecision-makingandautonomy.ViableSystemModelsenablescalingtohigherordersofservicedeliverythroughtheadoptionofco-operativegovernancestructuresthatengagebothcivilsocietyandgovernmentinjointlycontrolledinstitutionsattheprovincial,regional,andlocallevelsofgovernance.21

Theco-constructionofpublicgoodsandservicesthroughaninstitutionalframeworkthatfosterspublic-civicpartnershipsisattheheartofthePartnerStateasenvisionedhere.Tothisend,thefollowingarethekindsofpoliciesthathelptorecasttheroleofthestatefromoneofdominatingcontrolovertheproductionofpublicgoodsandservices,tothatofpromotingandenablingthecivicproductionofgoodsandservicesasaformofprotectedcommons.

InstitutionalSupport

Recommendations:

1. Thatregionalandlocalgovernmentsparticipateinasocialprocurementpolicythatpromotessocialeconomyorganizationsfortheproductionofsocialandhumanservices;

2. Thattheprovisionoftheseservicesbedesignedanddevelopedincollaborationwithsocialeconomyassociationsinthelocaljurisdiction;

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3. Thatareviewofexistingprocurementpolicies,including tradeagreements,beundertakentoidentifyandremoveexistingbarrierstosocialprocurementbysocialeconomyassociations;22

4. Thatanofficeforsocialprocurementbeestablishedtoprovideadviceandtechnicalassistancetogovernmentandsocialeconomyassociationsinthedesign,development,andprocurementofpublicservices.

5. Thatastrategicreviewbeundertakenbygovernmenttoexaminehowco-constructionofpublicgoodsandservicesmightbestbeundertakenandinwhichareas.

SharedServices

Recommendations:

1. Thatthegovernment,incollaborationwithsocialeconomyorganizations,identifyspecificareasinwhichservicesmaybeshared,andco-produced,bysocialeconomyorganizationsworkinginco-operation;

2. Thatthecreationofsharedserviceconsortiabesupportedtoprovidestrategicsharedservicesonthebasisoflocalandregionaljurisdictions;

3. Thatsharedserviceconsortiaandcentresbefundedfromthecontributionsofmemberassociationsandinvestmentsfromsocialeconomyfunds;

4. Thatsharedserviceconsortiaandcentresbecollectivelyownedandcontrolledbytheirusermembers;

5. Thatsharedservicecentresincludethepossibilityofrepresentationontheirboardbyanappropriategovernmentdesignate;

6. Thatamajorityofconsortiaandcentreboarddirectorsbederivedfromusermembersandthatnon-memberdirectorsmaynotexceed20%ofaboard’sdirectors.

7. Thatthegovernment,inpartnershipwiththeco-operativesector,establishaco-opdevelopmentprogramtofundthedevelopmentandsupportofnewco-operativeenterprises,includingtheprovisionoftechnicalassistanceandtraining;

8. Thatthegovernmentprovideincentivesforco-operationamongsocialeconomyorganizationsfortheproductionofsocialgoods

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andservices;9. Thatadedicatedobservatoryforthesocialeconomybe

mandatedtostudy,monitor,trackemployment,identifystrategicneedsandtrends,andprovideeducationalandresearchservicesforthesocial/solidarityeconomy..

StrategicPlanning&Design–RegionalandNeighborhoodCouncils

Recommendations:

1. Thateachmunicipalityberequiredtoestablishajointmunicipal/civilcouncilforthepurposeofdeterminingpriorityneedsfortheprovisionofsocialservices;

2. Thatmunicipal/civilcouncilspromotetheproductionofgoodsandservicesbysocialenterprisesthatmeetsocialandenvironmentalobjectivesandcontributetojobcreation,responsibleconsumption,personalandsocialwellbeing,andnewservicesnotprovidedbyeitherthepublicorprivatesector;

3. Thatthecouncilbecomposedofanequalnumberoflocalgovernmentandcivilsocietyrepresentatives;

4. Thatcivilrepresentativesbeselectedthroughafreeandopendemocraticselectionprocessbysocialeconomyorganizationsinthatjurisdiction;

5. ThatthechairmanshipofthecouncilsbesharedbetweenaChairandaViceChairtobedrawnfromgovernmentontheonehandandcivilsocietyontheother;

6. ThatthepositionsofChairandViceChairbeheldforatermoftwoyears;

7. ThatthepositionofChairalternatebetweenthegovernmentandthecivilrepresentativeeverytwoyearterm.

2.GuaranteeofMinimumEconomicIndependence

SocialIncome

AmongthemostsignificantachievementsoftheEcuadorianstatefortheadvancementofsocialprotectionistheuseoftheBono de

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Desarrollo Humano(BDH)forthealleviationofpovertyandtheimprovementofeducationalandhealthoutcomes.TheBDHhasledtoincreasedschoolretentionrates,increasedhealthcarevisits,andareductionofpeoplelivingbelowthepovertylinefrom49percentin2002to37percentin2010.Additionally,theratioofincomeinequalityinEcuadorhasbeendecliningsteadilysince2003.23

ComparedtootherConditionalCashTransfers(CCTs)inusebygovernmentsintheregion,Ecuador’sBDHhasalsoachievedahigherlevelofcoverageasapercentageofthetotalpopulation(44.3percentfor2010).24

InconjunctionwithothersocialprogramssuchastheRed deProteccíonSolidaria(RPS)–thefamilyinsuranceprogram,Coberturade Proteccíon Familiar(CPF),andtheCrédito de Desarrollo Human(CDH),Ecuador’ssocialprotectionprogramsarerightsandopportunity-basedpolicies.TheyarefoundedonthetheoreticalunderpinningsofBuen Vivirasastrategythatlooksbeyondthequantitativemeasurementsofeconomicperformanceandestablishesanewvisionforeconomicinclusion,transparencyandcitizenparticipation.

TheseareessentialtheoreticalandpoliticalfoundationsforthetransitiontoaPartnerState.Notonlydosuchsocialincomeprogramsensureameasureofsocialsecurityandequity;theyalsoestablishthesocio-economicbasisfortheemergenceofanautonomouseconomicspaceforatruesocialmarket.Theyprovideasocialformofcapitalthatcanbeusedtofinancethedevelopmentofnewformsofsocialenterpriseandtoenlargethescopeofthesocial/solidarityeconomyasanautonomous,civilcomplement(notasubstitute)tothepublicsector.

Butimportantassuchprogramsare,iftheyremainundertheexclusivecontrolofstateinstitutionstheyarenotyetinaformwheretheycouldplayatransformativerolefortheinceptionofaPartnerState.Forthis,anewmechanismforthesharedmanagementofthesesystemsbygovernmentandindividualcitizen-usersisrequired.

Howthen,mighttheideaofsocialincomebere-imaginedforittobecomeabuildingblockinsuchatransition?Thatistosay,how

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mightastate-supportedsocialincomebefullyintegratedintothesocial/solidarityeconomyandsobecomeacollectivesocialresourcethatcanbeusedbycivilinstitutionsfortheproductionofsocialvalue?Bysocialvaluewemeanthecreationofgoodsandserviceswhosevalueisdeterminedbytheirsocialutilityandsocialbenefit,nottheirexchangevalueascommoditiesinthemarket.A key area forimplementing such a transition is in the use of social income to create asocial market for the production and consumption of human services.

Oneavenuetoexploreisthecreationofauniversalsocialincomethatcanbeusedtofueltheexpansionofthesocialeconomythroughthecreationofasocialmarketforhumanandsocialservices.InthecaseofEcuador,oneapproachistoprovideanadditiontotheBDHintheformofasocialvoucherorsocialcurrencythatmaybeexchangedforservicesthatwouldbeofferedbysocialeconomyorganizationsthathavebeenestablishedforthispurpose.Suchasystemcouldbeginwithatargetedsocialcurrencythatprovidessupportforhumanservicessuchashomecare,eldercare,childcare,orservicestopersonswithdisabilities.Asocialincomeshouldnotberestrictedtothepoor.Forpurposesofcultivatingnewformsofsocialservice,theprovisionofasocialincomeshouldbedesignedtoincludealsohigherincomestrataandadjustedtoincomelevels.Thisapproachwouldalsoremoveanystigmaassociatedwiththeprogram.

Asocialincomeforhumanservicesopensupanumberofopportunitiesforincreasingthecapacityofthesocialeconomytocreatetheinstitutionsthatcandeliverhumanservicesasacommongoodandalsotoestablishaninitialframeworkforapartnershipbetweengovernmentandsocialeconomyorganizationsforjointlydesigningandproducingtheseservices.Anumberofinstitutionalresourceswouldberequiredforthisapproachtosucceed:

1. Thereneedtobesocialeconomyorganizationswiththeskill,capacity,andresourcestoprovidesuchservices;

2. Thereneedstobeaclearconstituencyofpotentialserviceusersthatwouldbepreparedtoparticipateinthedevelopmentofsuchamodelwithprospectiveserviceproviders;

3. Thereneedstobealong-termeducationandtrainingprogramtosupportbothserviceprovidersandusersinthedesignand

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developmentofthissystem;4. Thereneedstobeastrongcommunityofinterestwherethis

modelmightbepiloted,includingtheinvolvementoflocalgovernmentauthorities,socialeconomyorganizations,keycommunitystakeholders,andprospectiveusers.

3.DemocratizationoftheEconomyandRestructuringtheProductiveMatrix

EconomicandSectorDevelopment

ThedemocratizationofthebroadercommercialeconomyisoffundamentalimportancetotheevolutionofaPartnerState.Butifaneconomyistrulytoservethecommongood,itsdrivingvalues,itsrewardsandpunishments,mustreinforcethevaluesandaimsofcivilsocietyasawhole.Forthisreason,theeconomyasawholemustbesocializedandhumanized.Bythis,wemeanthesupportandexpansionofthoseformsofenterpriseandeconomicrelationsthatutilizethemarketforthepursuitofsocialobjectives.Thisincludesalltypesofco-operatives,socialenterprises,andprivatecompaniesthataimatsocialutility–notmerelythepursuitofprofit.Insum,itmeanstheexpansionofenterprisesinwhichcapitalisundersocialcontrol.

Presently,marketsaretreatedasiftheyarethepreserveofprivate,for-profit,capitalistfirms.Oneoutcomeisthatthespacethatisavailableforotherformsofenterpriseisincreasinglyreducedasmoreofthemarketcomestobedominatedormonopolizedbylargecorporateinterests.Bycontrast,thePartnerStatefostersaneconomywhoseinstitutionssupportandrewardplurality,co-operation,sharing,socialbenefit,andopen accesstothemarket.

Asanenablerofcivicformsofeconomicdevelopment,thePartnerStatehasacrucialroletoplayintheformationofeconomicpolicythatsupportsthegrowthofenterprisesthatpromotesocialvalue,environmentalsustainability,equity,andeconomicwellbeing.Centraltothisistheuseofparticipatoryplanningandlocalizedco-operativesystemstosupporttheemergenceandoperationofmicro,smallandmediumsizedenterprises(MSMEs)instrategicsectorsof

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theeconomy.

ThePartnerStateseekstodeveloppoliciesthataligneconomicdevelopmentwiththeexpansionofeconomicopportunityforallkindsofenterprises.Priorityisplacedonthoseenterprisesthatcontributetolocalandregionaldevelopmentthroughthegrowthanddiversificationofproductivecapacitythatisrootedtocommunity.Economicpolicyisthusgearedtothestrengtheningoflocaleconomiesthatcanmaximizeeconomicopportunityforindividualsandmicro,small,andmediumenterprises,whetherprivatelyorcollectivelyowned.

Asinmostdevelopingeconomies,MSMEscompriseasignificantportionofEcuador’sGDPandaccountforahighpercentofemployment.InEcuador,theyarepredominantlyinthesectorsofsmall-scaleagriculture,forestry,fishing,construction,artisan/craftproduction,andservices.25Theseenterprisesconstitutetheseedbedfromwhichlocaleconomiesaregrown;theyarethebasisforalocalizedgenerationandcirculationofwealth.

Forthisreason,Ecuador’spoliciesfortransformingtheproductivematrix,includingthedemocratizationoflandownershipanduse,placeahighpriorityondevelopingthisvitalcomponentofthenationaleconomy.AsstatedinthepolicydocumentsproducedbytheInterInstitutionalCommitteeforTransformingtheProductiveMatrix(2013),

Themicro,smallandmediumenterpriseshaveastrategicimportanceinthegrowthoftheeconomy,forthetransformationofthelocalproductionsystem,andthebestcompetitivepositionforthecountry.Inaddition,thesebusinesssegmentscontributetoreducingpovertyandinequality…”

TheaimisthatMSMEshaveprioritytreatmentatallstages,frominitiativestoimproveproductivity,quality,andmarketingtothosethatpromotestrategicandrewardingparticipationindomesticandinternationalmarkets.”26

Inthepromotionoftheseaims,thegovernmenthasinitiatedananalysisoftheproductivecapacitiesofeachofEcuador’s23regions,

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itemizingandanalyzingtheoperationsofMSMEsaswellasprivateandpublicactorsineachregion,identifyingtherelativeimportanceofspecificeconomicsectors,andidentifyingtherelativestrengthsandchallengesoftheproductivesystemsineachterritory.Throughout,thedocumentsstressthecentralimportanceofcollaborationamongeconomicactors,thesharingofresearchandinnovation,andthecreationofinstitutionsthatfacilitateeconomicandsocialsolidarityintheregion.

WithrespecttoMSMEs,anumberofgeneralpoliciesareproposedtoadvancethisvision:

1. Facilitatingandmanagingtheinteractionoftheactorsindifferentproductivechains;

2. Supportingtheparticipationofruralfarmersinpublicprocurementsystems;

3. Establishingaprogramofcontinuousinnovationtailoredtotheparticularitiesoftheregion;

4. Creatingpreferentialcreditprogramsofpublicbanksandstrengthenmicrofinanceinstitutionsandco-operatives;and

5. Promotingentrepreneurship.

Thisfocusoneconomicdemocratizationthroughthesupportoflocalsmallandmediumenterprises,aswellasthepromotionofrepresentativeRegionalCouncilsinthedevelopmentprocess,arekeyaspectsofaPartnerStateapproach.Asenablingagent,thePartnerStatedevelopspoliciesandresourcesthatprovideasupportiveframeworkforthiskindofdevelopment.Anumberofelementsareessentialtothis.Theyinclude:

Theexpansionofsocial/solidarityeconomyvaluesthroughouttheeconomythroughthepromotionofco-operativeandcommons-basedmodelsofenterprise;Thedevelopmentofco-operativenetworksthatencouragecollaborationandthepromotionofcollectiveinterestsandaregionalperspectiveamongindividualenterprises;Thecreationofinstitutionsthatenablejointplanningbetweenlocalenterprisesandgovernment;Theidentificationofstrategicsectorsandthedevelopmentofregionalpoliciesthatunderstandandaddresssectoralstrengths

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andweaknessesforthelong-term;Thedevelopmentoflocalizedservicecentres–controlledbytheenterprisesthatusethem–thatarecapableofprovidingspecialized,sharedservicestoenterprisesoperatinginspecificsectors;Thecreationoflocalizedinstitutionsthatsupportthecapitalizationofenterprise;Thecreationofentrepreneurialnetworksthatarecapableofaccessingandutilizingknowledgetoadvanceenterprisedevelopment,topromoteinnovation,andtotransformproductionthroughthesharingofinformationandtechnology(ICTs);Theprovisionofincentivesforco-operationamongsectorenterprisesforthepromotionofsharedproductionsystems,thesharingofknowledge,researchandtechnology,andthesharingofenterprisesupportssuchasmarketing,training,financing,accounting,bookkeeping,andICTuse;Theidentificationofresearch&developmentknowledgefromtheacademyforpracticaladaptationandapplicationtotheadvancementofindividualenterprisesandmaterialproductionthroughtheinvolvementofacademicinstitutions;Thelinkageofopenknowledgesystemstonewformsofproductionthatcanadapttechnologytotheconcreteneedsoflocalenterprises,includingtheadoptionofopensourcetechnology;

Mostofthesepracticesarenowacceptedasstandardpolicyforstrengtheningtheperformanceandresilienceofsmallfirmeconomies.However,thevitalquestionremains…How are thesepolicies to be realized in practice so that the institutions that are vital totheir success reflect the principles of a Partner State?

SectorDevelopment

PerhapsthemosteffectivemeansofimplementingaPartnerStateapproachtoeconomicdevelopmentistofocusonsectordevelopmentandthecreationofpartneringinstitutionsatregionalandlocallevels.Thisallowsforaconcentratedfocusonstrategicareasofeconomicactivityandonthemobilizationofpartnershipsandresourcesatthoselevelsofgovernancethataremost

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appropriatefortheimplementationofpolicy.Focusingonsectorsallowspolicyandpracticetobetailoredtotheuniqueinstitutionalandorganizationalcharacteristicsofadefinedareaofeconomicactivityanditsactors.Thisapproachalsohastheadvantageofactivatingthegovernancestructuresandgivingeffecttothedemocratizationanddecentralizationofdecision–makingandeconomicplanning.

ThefirststepinsectordevelopmentusingaPartnerStateapproachistheestablishmentofapartneringagencythathasthecapacitytoundertakeadetailedsectoranalysisoftheeconomyatbothnationalandregionallevels.Thepurposeofthisdevelopmentagencyistoanalyzetheoperationsofkeyeconomicsectors;toforecasttherolethesesectorsshouldplayintheevolutionofacountry’seconomicfuture;todiagnosethestrengthsandweaknessesofeachsectorinthecontextofbotharegionalandaglobalmarketplace;todiagnosetheevolvingtrade,technological,andregulatorydynamicscurrentlyunderway;andtoidentifythosesectorsthataremoststrategicforthetransitiontoaneconomythatpromotesresilience,sustainability,equity,andthesocialaimsofBuen Vivir.

Needlesstosay,thisdevelopmentagencywouldbedesignedasavehiclefortheinclusionofbothgovernmentandnon-governmentstakeholdersintheformationofstrategicplanningthatrelatesregionaldevelopmenttoglobalrealitiesandprovidesacounterweightofregionalandsmall-scaleentrepreneurialintereststothoseintereststhatformthecurrentpowerstatusquo.Includedinthegovernanceofthisagencyshouldbemicro,smallandmediumsizedbusinessinterests;organizedlabour;theco-operativeandsocialenterprisesector;thecreditunionsector;andkeyacademicinstitutions.

Aswiththeco-constructionofsocialgoodsandservices,thesecondelementinthedevelopmentofasector-basedeconomicpolicyisthecreationofspecializedservicecentresthatcanpromotethedevelopmentofstrategicsectorsbyassistingmicro,small,andmediumfirmstosucceedthroughtheprovisionofsharedservices;thedevelopmentofco-operativeproductionnetworks;thepromotionofshareduseoftechnology,research,andequipment;andtheutilizationofopenknowledgesystemsforcollective

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economicbenefitintheregion.

Thesecentreswouldformtheorganizationalinfrastructurethatfacilitatestheutilizationofopenknowledgeandopensourcetechnologyforgreatesteffectinthesectorstheyareintendedtoserve.Theoveralldirectionandcontrolofthesecentresmustrestprimarilyinthehandsofthoseenterprisesthatusetheirservicesalongwithrepresentationofotherregionalandsectoralstakeholderssuchasgovernment,universities,andlocalfinancialinstitutionssuchascreditunions.Thesectoralcentresshouldalsobecloselylinkedtothestrategicplanningroleplayedbythenationaleconomicdevelopmentagencyandthecorrespondingministryingovernment.AlltheseattributesofasectorstrategyarewellillustratedinthecaseofEmiliaRomagna.

CaseStudy–EmiliaRomagna

EmiliaRomagnaisaregionoffourmillionpeopleinthenorthofItaly.Itisoneofthebestexamplesofhowagovernmentcanemployco-operativeandcommons-basedprinciplesaspartofaPartnerStateapproachforbotheconomicandsocialdevelopment.

Theco-operativeeconomicsysteminEmiliaRomagnahasachievedaninternalcoherenceandintegrationthatisunique.Over8,000co-operativesaccountforalmost1/3oftheregion’sGDPwhichisthehighestpercapitainItaly.27ThisisItaly’slargestexportingregion,accountingforthirteenpercentofthecountry’stotal.28Butthiswasn’talwaysthecase.Inthe1950’sthiswasoneofItaly’spoorestregions.Today,EmiliaRomagnaisamongEurope’stoptenperformingeconomicregions.Howwasthisaccomplished?

Overaperiodof30yearscommencingwiththeformationofregionalgovernmentsin1971,EmiliaRomagna’sregionalgovernmentblendedthestrengthsoftheco-opsystemwiththepowerofgovernmenttocreateaco-operativeeconomicmodelthatextendsbeyondco-operativestotheeconomyasawhole.

ThemostdistinctivefeatureofEmiliaRomagna’sindustrialparadigmistheemergenceofwhathassincebecomeakeystrategyforthesuccessfuldevelopmentofasmallfirmeconomy–the

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clusteringofsmallfirmsinindustrialdistricts.IndustrialclusterswereperfectedinthisregionandanextensiveliteraturehasbeendevotedtowhathassincecometobeknownastheEmilianModel.Andalthoughthemodelhasundergonesignificantchangessinceitsdiscoveryintheearly‘70s,thepatternofindustrialdevelopmentthatitrepresentsisauniqueinstanceofsuccessfulco-operationinacapitalistframework.

ERVETandtheRealServiceCentres

Oneofthefirsttasksoftheregionalgovernmentwastocreateamechanismthroughwhichtheregionaleconomyasawholecouldbeunderstood,itsstrengthsandweaknessesdiagnosed,andaprogramofdevelopmentestablished.ItcreatedERVET,theeconomicplanninganddevelopmentagencythathadalastingimpactonthedevelopmentoftheregion’sstrategicsectors.

ERVETwasapublic/privateagencythatwasfundedanddirectedbyapartnershipbetweentheregionalgovernmentanditskeyalliesamongbusiness,labour,andacademicinstitutions.Itundertookacarefulanalysisoftheregions’keyeconomicsectors,diagnosedtheparticularstrengthsandweaknessesofthefirmscomprisingthesesectors,andestablishedaseriesofwhatwerecalled“realservicecentres”toprovidestrategicassistancetothefirmsandtheindustrialdistrictsofwhichtheywereapart.

Whiletheparticularservicesprovidedbyeachservicecentreweretailoredtotheneedsofthesectorinwhichtheyoperated–ceramics,agriculturalmachinery,footwear,clothing,etc.–theoverallstrategywasthesame:toincreasetheproductivecapacityandcompetenceofindividualfirmsandtoensurethatthelinkagesbetweenfirmsintheindustrialdistrictsremainedstrongandwerefurthermobilizedtostrengthenthesystemasawhole.

Someoftheseservicecentres(ASTER,Democentre)wereengagedexclusivelyinresearch,training,andtechnologytransfer.Theservicecentreswerestructuredonaco-operativemodel–theywerefundedthroughamixofERVETfundsandmemberfeesanddirectedbyelectedrepresentativesofthefirmsthatusedtheirservices.Thisensuredthatthecentres’serviceswouldcorrespondtothereal

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needsofthefirms.

Theco-operativenatureofthesenetworkswereakeyreasonwhySMEswereabletoaccesstheresearch,training,andknowledgethatwerecentraltocreatingtheinnovationsthatwereindispensibletothesuccessandsurvivaloftheseenterprises.TheprogramsandservicesofERVETandthecentresreinforcedtheco-operativebondsbetweenfirmsandwithintheindustrialdistricts.Forexample,researchfundsforproductdevelopmentorthedevelopmentofnewtechnologyweregrantedonlytogroupsoffirmsthathadagreedtoworktogether.

Onthequestionofcapitalinvestment,firmswouldorganizecreditco-operatives.Thesegroups,orconsorzi,wouldthentakeresponsibilityfortheloanstakenoutbytheirmembers,operatingmuchasaloancircleforsmallfirms.AdaptedtothecreditneedsofEmilianfirms,consortioloansareprovidedatverylowratesbyco-operativebanks,manyofwhichwerefirstestablishedasasourceofcreditforfarmers.Sosuccessfularetheseconsortia,andthedefaultratessolow,thatthelargenationalbankshavebeentryingtobreakintothismarketforyears,butwithlittlesuccess.Thesmallerregionalbanksprovideforalmostalloftheregion’scapitalneeds.

TheseandsimilarpoliciesarealreadyhighlightedintheideasandproposalspromotedinEcuador’sNationalPlanandnumerouspolicydocuments.ThereisastrongaffinitybetweenEcuador’ssocialandeconomicaimsandwhatEmiliaRomagnahasbeenabletoachieve,andbothcasesrelyonelementsthatarecentraltotheideaofaPartnerState.

Undoubtedly,countriesandregionsdiffer.Theeconomic,social,andpoliticalantecedentsthatgaverisetotheEmilianModelareinsomewaysunique.However,thelessonsofco-operationasaninstrumentofregionaldevelopmentandofsmallfirmempowermentareevenmorerelevantinthecaseofcountrieslikeEcuadorwhereeconomicinequitiesandthedominationofestablishedpowerstructuresareevenmoreadversetotheinterestsandprospectsofsmallandmediumfirms.

Inthesecontexts,co-operationamongMSMEsataregionallevelis

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evenmoreofanimperativeiftheyaretodevelopandcontributesignificantlytoanew,morepluralistic,productivematrix.And,justasthenewdigitaltechnologyofthe1970sand80sgaveimpetustothespecializationsandinnovationsofEmiliaRomagna’ssmallfirms,theopensourcetechnologyandcommons-basedknowledgesystemsoftodayprovideameansforsmallfirmstosimilarlyadaptemergenttechnologytotheparticularconditionsofMSMEsinEcuadorandelsewhere.

Today’sInternetmakespossibletheadaptationoffarmmachinerytolocalneedsthroughopensourcedesignsthatcanbesharedatminimalcost.Opensourcetechnologyprovidesameansforsmallfarmerstoaccessinformationonlinethatgreatlyenhancestheircapacitytoimproveproductionbyadjustingtheirpracticestotheparticularitiesofcrops,soils,andclimates.Newavenuesforglobalmarketingoflocalproductsareavailable,asistheintegrationofproductsintofairtradedistributionnetworksthataremeanttosupportthekindsoflocallycontrolledproductionmodelsdescribedabove.

Mostimportantofallaretheexamplesofsuccessfuldevelopmentstrategiesthatcanbenefitbothprivateandcollectiveformsofownershipthroughtheuseofco-operativesystems.JustasthesesystemshaveprovensuccessfulinregionslikeEmiliaRomagnaandtheindustrialdistrictsofGermany,FranceandtheUS,sotoohavethesemodelsbeenadaptedtoservetheneedsofregionaleconomiesincountrieslikeSriLanka,Mexico,andCostaRica.Here,thechallengesofsmallscale,isolation,absenceofsecondaryprocessing,inaccessiblemarkets,andthecontrolofproductdistributionbyintermediariesareidenticaltotheproblemsfacedbysmallproducersandentrepreneursinEcuador.

4.SecuringtheCommons

Therecognition,protection,andexpansionofthesociety’scommonsarecentralfeaturesofThePartnerState.Whatdowemeanbythecommons?

Thecommonsreferstoanyresourcewhoseuseisfreelyaccessibletoacommunityofusersandwhichinturn,ismanagedbythemin

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common.Acommonsisnotownedintheconventionalsense.Rather,itsvalueliesinthefactofitsfreeandopenaccess.Itistheantithesistoenclosureofaresourceforprivatebenefit.Instead,acommonsisbasedonthesocialethicsofinterdependenceandco-operationandthevalueofacommonsisgeneratedthroughthepracticeofsharing.Mostimportantly,acommonsistheproductofthosesocialrelationshipsthatenablethisuse.

Traditionallycommonshavereferredtosuchnaturalgoodsaswater,fisheries,forests,pastures,etc.However,theconcepthasbeenbroadenedtoincludealsonon-materialcommonresourcessuchasknowledge,culture,freesoftware,andtheInternet.Thesesamequalitiesofopenaccess,sharing,andcollectivemanagementbytheusersarecommontoallofthem.Thecommonsthen,areamanifestationofthosesamevaluesofreciprocity,mutuality,andsocialbenefitthatunderlietheoperationsofcivilsocietyandthesocial/solidarityeconomy.

Historically,thecommonsmaybeseenasthematerialandeconomicfoundationsthathelpedsustaincollectiveformsofliving.Theywere,andremain,boththeproductandtheindispensiblesupportofthosesocialrelationsthatbindpeopletoeachotherandtotheirenvironment.TheideaofthecommonsisthuscentraltotheaimsofBuen VivirandisalsointimatelylinkedtotheprotectionsaffordedtonaturebytheConstitution.Theseprotectionsaredeeplylinkedtotheprotectionandpromotionofthecommonsandtothenotionofsubsidiaritythatgrantslocalterritoriesandindigenouspeoplestheconstitutionalrighttoparticipateinthedecisionsaffectingthedevelopmentoftheirterritoryandtheenjoymentoftheirtraditionalwaysofliving.Protectionofthematerialcommons,especiallynaturalresources,isintimatelyconnectedtotheestablishmentofaplurinationalpolity.

Thenotionofcollectiverightsisinseparablefromtheideaofthecommonsandofthecommongood.Collectiverightsarethoseindividualrightsthatbelongtotheindividualasamemberofacommunity.Theindividualhastheenjoymentoftheserightsasprotectedbylaw–butonlyasamemberofthecommunity.Itisthecommunityasawholethatembodiestheserightsandexercisesthemthroughtheagencyofeachindividualmember.Thecollective

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enjoymentoftheserightsislinkedtothenotionofuse,andinparticulartotheconceptofcivicuseasopposedtomerelyfreeuseorpublicuse.Itistheconceptof“civicuse”thatismostamenabletotheregulationofcommongoodsas“thingsinstrumentaltotherealizationofthedevelopmentoftheperson”,acentralconceptofBuen Vivir.Morespecifically,commongoodsrefertothosethingsthatmaybeusedbyanyonebelongingtothecommunitythathasuserightsoveracommons.

Enclosureandcommodificationofthecommonsunderminethematerialbasisforcollectiveformsoflivingandofthesocialrelationshipsthatinturn,reproducethoseforms.Theyareanirreplaceableresourceforre-generatingasociety’sstoreofsocialcapital,forvalidatingandmanifestingtheideaofsocialsolidarity,andforanchoringboththevaluesandtheoperationsofcivilsociety.Assuch,theprotectionandexpansionofthecommonsmustbeabasicaimbothofcivilsocietyandofanygovernmentthatwishestopromotethesocialaimsenvisagedintheideaofBuen Vivir.

CommonversusPublic

Thecommonshowever,shouldbedistinguishedfrompublicgoodsorpublicproperty.29Whilebothcontaintheideasofnon-exclusionandsocialvalue,publicgoodsarenotcontrolledormanagedbytheirusers–publicgoodsandpublicinstitutionsarecontrolledbythestate.Forthisreasontheymayalsobeprivatizedbythestate,commodified,andsoldforprofit.Today,theenclosureandcommodificationofpublicgoodsbygovernmentsandcapitalconstitutethegreatestencroachmentsagainstsocialwealthintheworld.

Theevolutionoftherelationshipbetweenstatesandcapital,betweenpublicandprivateproperty,hasledtoaconditioninwhichprivatizationandstatismnowendangertheverysurvivalofthecommonsasanindispensibleresourceforthesatisfactionofbasichumanneeds.Inthisweincludesuchessentiallifesupportsasaccesstowater,thesharingofseedsforagriculturalproduction,andcleanair.Butitisnowclearthatconventionalmodelsofdemocraticgovernance,conceivedasgovernmentactingon behalfofcitizens,arenolongercapableofprotectingandpreservingthepublicinterest

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andwhatremainsofthecommonsalongwithit.Whatisrequiredisawhollynewrelationshipinwhichformalpoliticalauthoritylegitimizesitsoperationsinagiventerritorythroughthedirectinvolvementoflocalcommunitiesingovernance.

Theprotectionofthecommonsrequiresaframeworkwhichformalizesthecivilandcommunitarianattributesofcommonsandwhichtietheminalienablytotheirusersandtotheterritoryasasharedcollectiveresource.Thismeanstheenactmentoflegalprotectionsfortheirpreservationandthepursuitofpublicpoliciesfortheirexpansion.Aboveall,itmeanstherecognitionbythestateofadistinctandinalienablespaceofcommons wealththatcanneitherbeappropriatednorpurchased.Itisauniquelycivilspacethatisprotectedbylegislationwhichrecognizesthisdistinctivecivil–asopposedtopolitical–qualityofthecommons.Oneofitsprimaryfeaturesistherecognitionofusers’controlrightsoveritsmanagement.

Acurrentexampleofthiskindoflegislation–focusedonurbancommons–istobefoundinthecityofBologna,whichhasbecomethefirstCommonsCityinEurope.

LegislationfortheCommons

ThesalientcharacteristicofthisnewrelationshipbetweentheCityanditscitizensiscollaborativegovernanceontheprincipleofhorizontalsubsidiarity.Horizontalsubsidiarityrequiresalllevelsofgovernmentstofindwaystosharetheirpowersandco-operatewithsingleorassociatedcitizenswillingtoexercisetheirconstitutionalrighttocarryoutactivitiesofgeneralinterest.And,asopposedtoconventionalsubsidiarity,whichisverticalandhierarchical,horizontalsubsidiaritystresseschoicesthataremadecollaborativelybysocialactorsandgovernmentatthelevelatwhichanactionistobecarriedout.Themanagementofcommonsiscentralinthisrespect.Inthismodel,publicadministrationsshallnolongergovernonlyon behalfofcitizens,butalsotogetherwithcitizens,acknowledgingthatcitizensrepresenta“powerfulandreliableallycapableofunleashingagreatsourceofenergy,talents,resources,capabilitiesandideasthatmaybemobilizedtoimprovethequalityoflifeofacommunityorhelpcontributetoitssurvival.”30

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TheCitiesasCommonsprojectstartedinJune2012inBolognathankstothesupportofFondazionedelMontediBolognaandRavennaandthetechnicalsupportprovidedbytheLaboratoryforSubsidiarity–Labsus–inRome.31Overthelasttenyears,Labsushascollectedandanalyzedcasesofcollaborativegovernancewiththeaimofdemonstratinghowanewmodelofgovernmentcouldbeusedtorealizetheseaims.Theprojectappliedanempiricalapproachand,afteratrainingprogramwithCityofficialsandlocalcivicleaders,facilitatedthebirthofpartnershipsbetweentheCityandlocalresidentswithregardstothemanagementofthreeurbancommons–apublicsquare,asectionofthecity’sfamous“portici”,andapublicbuilding.

ThedraftoftheregulationthatwasadoptedwasthensubjectedtopublicconsultationandreviewedbysomeofthemostprominentItalianscholarsofadministrativelaw.ASpanishtranslationoftheregulationisincludedinAppendix3.

KeyFeaturesoftheRegulation

TheRegulationonCo-operationBetweenCitizensandGovernmentontheCareandRegenerationofUrbanCommonsisaframeworkforthejointcareandmanagementofurbancommons.AsstatedintheDocument,

“This Regulation, in harmony with the provisions of the Constitution andthe Statute of the municipal governing the forms of co-operation betweencitizens and the administration for the treatment and regeneration of urbanpublic goods, in particular giving effect to art. 118, 114, and paragraphs 2, 6and 117 of the Constitution.

Theunderlyingprinciplesoftheregulationincludethefollowing:

1. Recognitionofcommonsasessentialtothegenerationofindividualandcollectivewell-being;

2. MutualTrustbetweenthemunicipalityandthecivilgroupsengagedincommonswork;

3. Autonomyofcitizenstoengageandorganizeinthepursuitofcommonsaims;

4. Flexibilityandinformalityofarrangementsandagreementsfor

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theco-managementofcommons;5. Identificationandallocationofpublicassetsasresourcesfor

collectivelifeandenjoyment;6. Openness,Accountability,andTransparencyintheco-

managementofcommons;7. Promotionofsocialeconomyorganizationsasapriorityforthe

productionandpreservationofcommonsgoodsandservices.

Theregulationreferstothecareandstewardshipofabroadrangeofpublicassetsandservicesthatfallunderitsjurisdiction.Thesearedescribedasincluding,

Assetsofurbanmunicipalitiesandtangible,intangibleanddigitalpropertythatthecitizensandtheAdministrationrecognizeasinstrumentalforrealizingindividualandcollectivewellbeingand…tosharewiththeadministrationtheresponsibilityoftheircareorregenerationinordertoimprovethecollectiveenjoyment.”32

Theregulationalsopromotesthecreationofarangeofsocialeconomyorganizationsforimplementingthiswork.

The municipality pursues the objectives referred to in this articleencouraging the creation of co-operatives, social enterprises, start-ups insocial vocation and the development of economic, cultural and socialactivities and projects.33

Akeyprovisionofthisregulationistherequirementforlocalauthoritiestodesignatemunicipally-ownedassetsasresourcestobeusedfortherealizationoftheseaims.

Spaces and buildings referred to in this regulation constitute a resourcefunctional to the achievement of the purposes referred to in this article. TheCity reserves a portion of these assets to projects that foster social innovationor the production of collaborative services.34

Allcitizens,whetheractingasindividualsorasmembersofassociations,havetherighttoparticipateandcontributetothisworkofcaringforthecommons.35Theregulationdescribestheproceduresandstandardsrequiredfortheimplementationofajoint

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citizen/governmentinitiative.Theseareintendedtobeenablingasopposedtoprescriptive.Importantly,theregulationpromotesinformalityinthearrangementsbetweenparticipatingstakeholdersandrequiresformal,legalagreementsonlywhenrequiredbylaw.

“…theAdministrationrequiresthattherelationshipwithcitizensissubjecttospecificformalitiesonlywhenthatprovidedbythelaw.Intheremainingcasesensuresflexibilityandsimplicityinthereport,aslongasitispossibletoensurecompliancewithpublicethics,aswellasdeclinedthecodeofconductforcivilservantsandtheprinciplesoffairness,goodperformance,transparencyandcertainty.”36

Oneadditionalpointmaybenotedwithrespecttotheregulation.Thenotionofthecommonsisextendedtothemanagementofimmaterialcommongoodsandthepromotionofdigitalinnovationasacomponentofcommonsco-management.

Thisisanimportantfeaturethatlinkstheco-managementofthecommonstotheconceptsofopentechnology,thepromotionofopengovernment,andtothebroaderaimsofasocialknowledgeeconomy.

The Municipality encourages innovation through digital interventionsparticipation in the conception, design and implementation of services andapplications for the civic network by the community, with particularattention to the use of open data and infrastructures, in perspective ofdigital commons.37

Inaidofthisobjective,theCityofBolognahasalsoprovidedmaterialsupportforthecreationofIperbole–aCivicNetworkthatpromotestelemediaasan“instrumentofelectronicdemocracyandsocio-economicdevelopmentoftheterritory”38andthemobilizationandengagementofcitizensforthecare,restoration,andexpansionofthecommons.

To this end, the City agrees with the parties that participate in civic life andthe evolution of the network and provide the collaborative environment andcivic skills for the co-design and realization of innovative services, data,spaces, infrastructure and digital platforms, such as the medium of the Civic

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Network.39

Finally,theimplementationofthesecollaborativeprojectsentailstheenactmentofaco-operativecovenantorpactbetweengovernmentandcitizens.Theco-operativepactdescribestheworktobedone,theprocedurestobefollowed,themonitoringandevaluationoftheresults,andtheresources,guarantees,andresponsibilitiesinvolved.Anditisinterestingtonotethatboththeideaoftheco-operativepactanditsformhavebeenstronglyinfluencedbythecivicagreementssignedbylocalauthoritieswithsocialco-opsfortheprovisionofhealth,education,andsocialservicescommissionedbythemunicipalities.

TheregulationadoptedbyBolognaprovidesaconcreteandcomprehensiveframeworkforimplementingaprojectfortheco-managementofpublicandcommongoodsbyamunicipalityanditscitizens.ItsaimsandprinciplesreflectmanyoftheelementsthatarecharacteristicofhowaPartnerStatemightapproachtheprotectionandco-managementofthecommonsinanurbancontext.ButwhereastheBolognainitiativehasbrokennewgroundwithrespecttotheregenerationandcareofurbancommons,theprinciplesinvolvedmaybeadaptedtotherequirementsofotherformsofcommonsandatlargerscales.

Combinedwiththeideaofhorizontalsubsidiarityandoftheconstitutionalrightsofnatureandofindigenouscommunities,aregulatoryframeworkcouldbedevelopedfortheidentificationofsuchcommonsaswaterways,forests,andnaturalresourcesforjointmanagementwiththepeoplesoftheterritorieswherethesecommonsexist.APartnerStateapproachthroughaformofco-operativepactwiththecommunitiesoftheseterritorieswouldgiveconcreteeffecttothedecentralizationofdecision-makingmandatedbytheConstitutionandtheNationalPlan.Thisapproachwouldalsosecurethematerialbasisfortheexpressionofthosesocialvaluesofreciprocity,mutualityandthecommongoodthatarethebasisforcollectivelifeintheseterritories.

ButwhiletheBolognainitiativehasdevelopedtheregulatoryframeworkfortheco-managementofurbancommons,thesemunicipalassetsarestillownedbythestateandassucharepublic…

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notentirelycommoninthesensewehavedescribed.Forthistobethecase,themanagementofthecommonresourceneedstobepairedwithlegalprotectionsthatsecureitsuseasacommonsinperpetuity.Suchacommons,whilelegallyprotectedandconstitutedforthisuse,maynotbeappropriatedbythestateasgovernmentorpublicproperty,norbesold.Forthistohaveeffect,aformofcollectiveandcivilownershipmustbedevised.

Examplesoftheseformsofcommonsownershipandgovernance,aswellastherulesfortheiroperation,havebeenwelldocumentedbyElinorOstrom.40Successfulexamplesoftheiruserangefromtheco-operativemanagementofJapan’sfishery–theworld’slargest–totheco-operativemanagementofwaterwaysandirrigationsystemsbytheindigenousfarmersofBali.41

Initsconstitutionandnationalaims,Ecuadorhasalreadytravelledagreatdistanceinthedirectionofempoweringitscitizenstotakeanactiveroleinthedevelopmentoftheterritoriesinwhichtheylive.Ithasenshrinedtheprinciplesofdecentralizationandlocaldecision-making;ithasmandatedalllevelsofgovernmenttopromotethedevelopmentofgoodsandservicesthroughprocurementpoliciesthatgiveprioritytogroupsinthesocial/solidarityeconomy;andithasadvocatedthepursuitofsocialknowledgeandthecommonsasafoundationforthetransformationofthecountry’sproductivematrix.Clearly,allthesemeasureshavedirectrelevanceasmodelsfortheadvancementofcitizenengagementandthepromotionofthesocialeconomyfarbeyondEcuador’sborders.

However,thedevelopmentofatruePartnerStatewouldrequiretheformulationofalegislativeandregulatorynationalframeworkthatwouldentrenchthecommons,inalltheirforms,asatruenationalpatrimonybeyondthereachofthoseintereststhatwouldseektoenclosethemforprivateorpoliticalgain.

Tothisend,weproposethefollowingpolicyrecommendations:

1. Thatacomprehensivemappingofexistingnaturalresourcecommonsbecarriedout;

2. Thatcomprehensivelegislationbeintroducedtosecureandprotectthecommonsasanationalpatrimonyandtiedtothe

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territorieswherecommonsareutilized;3. Thatspecificpolicyframeworksbeestablishedfortheco-

managementofurbancommonsbylocalmunicipalitiesandthecitizenry;

4. ThatsocialeconomyorganizationsberecognizedasthemostappropriateformforcitizenmanagementofcommonsandthattheOrganicLawforthePopularandSolidarityEconomy(LOEPS)berevisedtoallowforthecreationofbothcommunityserviceco-operatives(social/solidarityco-ops)andmulti-stakeholderco-operativesassocialinstrumentsforthemanagementofcommons.42

Theinclusionofnaturalresourcesasnationalcommonstobegraduallyco-managedbythestateandlocalcommunitiesconstitutesanentirelynewapproachtoresourcedevelopmentandwouldpowerfullytransformthecountry’sproductivematrixinthedirectionofBuen Vivir.Thecommonificationofresources,likethedemocratizationofpublicservicesandthebroadereconomy,arepowerfulcatalystsfortheevolutionofacivicculturethathasthecollectivevalues,thesocialcapital,andtheenablinginstitutionsthatwouldallowcivilsocietytoplaytheroleenvisagedforitbytheframersofthecountry’sConstitutionandtheCitizen’sRevolutionthatwasitssourceandinspiration.

CulturalFactors

Itisimportanttonotethatatransitiontothistypeofdevelopmentiscontingentonexistingpatternsofproductionandtheculturalattitudesthatdriveeconomicbehaviour.Themostimportantoftheseisthepresenceorabsenceofhighlevelsofsocialcapitalandapredispositionamongpeopletoworktogethertorealizemutualaims.Wherethesesocialvaluesandattitudesarestrong,andwhereco-operativeinstitutionsalreadyexist,thecollaborativeapproachtoeconomicdevelopmenthasafarhigherchanceofchangingtheproductivematrixthroughtheuseofsocialknowledgeasaresourceforeconomicandsocialdevelopment.Wheresocialcapitalisweak,akeystrategyforpromotingsuchadevelopmentmodelisthecreationofproductionsystemsthatfosterhabitsofeconomiccollaborationandthatareorientedtowardcommonbenefit.

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Unlikeconventionalcapitalistmodels,whichservetoundermineanddepletesocialcapital,co-operativeandpeer-to-peermodelsdependuponsocialcapitalasanecessaryconditionoftheiroperations.Co-operationreinforcesandcultivatesfurtherco-operation.Co-operativesystemsreplenishsocialcapitalandtheattitudesandskillsthatpromotesharing.Asuccessfulsocialknowledgeeconomyisthusverymuchaco-operativeeconomy.

Thispointneedstobeemphasizedasitiscentraltocreatingthesocialandculturalconditionsthatcansustainaneconomicmodelbasedonsharingandcommons-basedvaluesthatarethefoundationofasocialknowledgeeconomy.Thesequestionsofculturalattitudesandthemeansoftransformingthemareinsufficientlytreatedinproposalsforeconomicdevelopment,yettheyarecentraltotheprocessofsocialandeconomictransformation.

Itisforthisreasonthattheadoptionandpromotionofparticularmodesofproduction,ofownership,ofrelationshipsamongeconomicagents,andofinstitutionallinksbetweengovernmentandthestakeholdersofboththeprivateandsocialeconomiesaresoimportant.

Theotherissuethatneedstobehighlightedisthequestionofhowpopularexpectationsandperceptionsofthestatehelporhindercitizenparticipation.ThisissueiswellarticulatedinEcuador’sNationalPlanandisoftremendousrelevancetotheimplementationofrealisticpoliciesaimedattransitiontoaPartnerStatemodel.

Enormous progress has been made in citizen participation. However, thechallenge lies in changing the attitudes of citizens, which are stillpersistently passive. This culture of a citizenry passively dependent on Stateguardianship must be limited.

This qualitative leap forward, from citizens wishing for rights to citizensexercising their rights, is a break away from the power of the market, aswell as the domination and accumulation incrusted into social structures.Constructing an active, committed, and thoughtful citizenry demands amore profound institutional reform of the State, so citizen participation caninfluence public governance. It also requires creating the conditions andcapacities necessary to promote, sustain and assure citizen-led processes to

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promote Good Living, and to institutionalize a constructive dialogue thatgenerates egalitarian, solidary, free, dignified, and responsible actions, inharmony with Nature and respectful of the world-views that comprise ourpluri-national State.43

ThekindsoforganizationalformsthatarecultivatedbygovernmentsareimportantindetermininghowcitizenscometoacquiretheskillsandattitudesthatenablethemtoplaytherolesdemandedofthembythePartnerState.Thismeansaveryparticularoutlookonthepartofpoliticalleadersanddecisionmakersingovernment.AsinthecaseofEmiliaRomagna,theconsciouschoiceoftheregionalgovernmenttofacilitatetheemergenceofco-operativesystems,whetherinthecommercialorthesocialeconomy,addedrealimpetustotheexpansionofthesevaluesandtotheskills,knowledge,andcapacitiesofthecitizenrytoexercisethem.Thesocialco-operativesinItaly,whichtransformedthesocialwelfaresystem,wereinitiatedfromwithinthesocialeconomy.Buttheirgrowthandsuccesswouldnothavebeenpossiblewithouttheroleplayedbythestate.Thesameistrueofthesolidarityco-opsandagreatnumberofsocialenterprisesinQuebec.

Theformofanorganizationwilldeterminebothitsmannerofoperationandthebehaviouralhabits,attitudes,andexpectationsofthosewhoworkinit.Justasprivateformsofcapitalistenterprisewillreinforcethehabitsandvaluesofself-interestandcapitalaccumulationforprivateends,sodoco-operativeandpeer-to-peerformsofenterprisepromotecollectivevaluesandtheabilitytovieweconomicsasameanstoadvanceindividualintereststhroughco-operationwithothers–whethertheyareindividualsorotherenterprises.Theconsciouspromotionofallformsofco-operationamongcitizensandbusinesses–whethertheyareprivatelyorco-operativelyowned–isthuscentraltotheoperationsofaPartnerState.

Onemeansofpromotingthistypeofco-operationamonggroupsisbyensuringthatfundsfordevelopmentareavailableonlytogroupsofenterprisesthatareworkingtogether,asopposedtoindividualfirms.Thisistruealsoforthepromotionofco-operationwithinthesocial/solidarityeconomyandamongsocialeconomyorganizations.

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Alsoindispensibleforthetransformationofculturalattitudesinthisdirection,bothinsidegovernmentandinthebroadersocial/solidarityeconomy,isthedevelopmentofthehumanandorganizationalcapacitiesamongcitizensthatareessentialforthedevelopmentandoperationofthesetypesoforganizations.

InstitutionalObstacles

Chiefamongthepotentialobstaclestothesuccessfulimplementationofthesepoliciesaretheexistingbureaucraticstructuresofthestate.

ThetransformationofthesestructuresintopartneringandenablinginstitutionswithmeaningfulinclusionofcivilgroupsisanessentialundertakingfortransitiontoaPartnerStatemodel.Thisentailsacomprehensivetrainingandhumandevelopmentstrategythatprovidesdecisionmakersandcivilserviceworkerswiththeconcepts,skills,experiences,andattitudesthatarefundamentalforimplementinganentirelynewconceptionofinclusivegovernanceandsocio-economicdevelopment.

Onapracticallevel,asthesocialeconomyhasexpandedoverthepastthirtyyearsandthelimitationsofstatestructuresoperatinginisolationhavebecomeevident,therehavebeenarangeofexperimentstocreateamoreharmoniousinterfacebetweenstateandsocialeconomy.Theyinclude:

1. In-outteams,workinginthestateandcomprisingthosefromthesocial/solidarityeconomyandthestate;

2. Placementsacrosstheboundaries,ofcivileconomyactivistswithinthestate,andstateofficialsinthesocialeconomy;

3. Socialinnovationlabs,eitherwithinthestate,orincollaborationwithpeoplefrombotheconomies;

4. Commonformation(forexamplethroughsocialinnovationcourses/degrees);

5. Generativeratherthantransactionalcontractsbetweenthestateandsocialeconomyorganizationsforcivileconomicventuresundertakingpublicservices;

6. Distributedprocurementpracticeslinkedtocivilconsortia,andthedevelopmentofaprocurementculturecenteredaround

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socialinnovationandthedevelopmentofqualityservicesbythecivilventures(Cleveland’sEvergreenprogramisanoutstandingexample);44

7. Thedevelopmentofservicemetricsforthepublic/civilventures,thatcanalsobeusedasdataforpublicaccountability;

8. Openbooksforcivilventuresundertakingpublicservices;9. Thejointmobilizationofknowledgefromwithinthestateand

thecivilventuresaroundparticularprojects;10. Actionstoco-operatizethestateitself,withashifttomore

lateral,team-basedorganization,andtheinvolvementoffrontlineworkers(alongwithcivilconsumers)intheco-designandco-productionofpublicservices(thecaseofITinnovationinNewcastle(UK)isastrikingcaseinpointwhichdevelopedasanalternativetoprivatization).

11. Actionstodemocratizethewidereconomythroughthedevelopmentandpromotionofcollectiveandco-operativeownershipmodelsofproduction.

Theseactionsreflectparticularwaysinwhichthetwoculturesmightfindcommoncausebycombiningtheuniquestrengthsofeachinre-framingtheproductionofpublicgoodsinawaythatrecognizesandreinforcesthecentralroleofcitizensandtheircommunitiesastheprimaryactorsinmakingrealtheaimsandaspirationsofBuen Vivir.

Thesecondissuethatcriticallyneedstobeaddressedforthetransitionprocessdescribedaboveistheformationofthosevalues,attitudes,andskillsthatcantranslateidealsintoeffectiveandtransformativepracticeintherealworld.

TheCo-operativeUniversity

OneofourprimaryrecommendationsfortransitioningtoaPartnerStateisthecreationofaCo-operativeUniversitytoserveasthenation’sprimaryresearch,education,andtrainingfacilityforgeneratingtheattitudes,knowledge,andprofessionalskillsneededforimplementingthepoliciesandrealizingtheaimsofaPartnerState.

Asavitalresearchandtraininginstitution,theuniversitywould

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serveasthenation’spremiertraininggroundforadvancingthecapacitiesofthecitizenry–whetheringovernment,thesocial/solidarityeconomy,ortheprivatesector–tounderstandtheprinciplesandpracticesofopengovernment;ofsocialentrepreneurship;ofdistributedandco-operativeeconomicandsocialdevelopment;oftheprotection,expansion,andmanagementofthecommons;andofde-centralizedco-operativedemocracyasatemplatefortheco-creationandco-managementofgovernmentpolicy.

Theorganizationalandoperationalstructureoftheuniversitywouldembodytheprinciplesofco-operativegovernanceoutlinedinthispaperandwouldserveasamodelforthetransmissionoftheco-operativeandcommonsconceptsandskillsarticulateabove.

Therehasrecentlyemergedabodyofresearchassociatedwiththerelationofco-operativevaluesandstructurestothemanycriticalchallengesfacingtheroleandfunctioningofcontemporaryuniversitiesinthecontextofadvancedneo-liberalism.Rangingfromtheriseofover700co-operativeschoolsintheUK,tostudiesontheperformanceofexistingco-operativeuniversitiessuchastheMondragonUniversityinSpain,45arangeofcommentatorshaveexploredthepotentialoftheco-operativemodeltoradicallyreformpedagogicalpractice,bothatprimaryschoollevelsandinhighereducation.46

Aconstantthemethroughoutthesestudiesishowtoconstructanorganizationalmodelandlearningculturethatre-orientstheuniversityfromtheproductionofskillsandknowledgeforprivate–thatistosaycorporate–ends,toonewhichregardstheuniversityasaformofsocialcommonsinwhichknowledgeisproducedprimarilyfortheadvancementofsocialaims.

Justasthemodernuniversityistheprimarymatrixwithinwhichthevalues,skills,andattitudesthatareessentialfortheoperationofcontemporarycapitalismareinculcatedandreplicated,sotoo,doesaneconomybasedontheideasandprinciplesofthesocial/solidarityeconomyandthePartnerStaterequireananalogousacademycapableofdevelopingtheattitudesandskillsthatareessentialforgeneratingacultureofco-operationandthecommonsthatboth

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reflectsandadvancesthesocialandeconomicprinciplesthatsustainsuchaneconomy.

ConcludingRemarks

TheideaandthepracticeofthePartnerStateisbothchallengingand,inouropinion,utterlynecessary.Formany,thecurrentimpasseinpoliticalgovernanceisthreateningthematerialbasisofhumancivilization.Itisequallyclearthattheformsofrepresentativedemocracypracticedtodayaremanifestlyincapableofdefendingthebroadpublicinterestwithwhichgovernmentshavebeenentrusted.

Thereasonsforthisarealsoclear:thecaptureofnationalgovernmentsbycapitalinterests;thecontinuingprotectionoftheseinterestsintheformulationofeconomicandsocialpolicy;theimpositionofpoliciesthatweakenexistinglabourandsocialprotections;thegradualcriminalizationofdissent;andthegrowingdisaffectionanddistrustofgovernmentandtheprevailingeconomicparadigmthatisadirectconsequenceofthisimpasse.AndwhereastheachievementsoftheWelfareStatemodelinthepostwareracontributedtotheameliorationofsocialandeconomicinequities,thedismantlingofthismodelundertheaegisofneo-liberalpolicieshasnowreturnedvastnumbersoftheworld’spopulationtotheprecariousnessofpreviouseras.

Unlesstheeconomiesofnationsarere-orientedtowardthepursuitofthecommongoodandtowardamoreequitable,humane,andsustainableformofeconomics,theforwardmovementofourpresentconditionwillonlydeepenthecurrentcrisis.Thiscarrieswithitthecertainprospectofacceleratingsocialandeconomicupheavalaspopulationsbecomemorealienatedfromtheirgovernmentsandfromthedysfunctionalcapital-dominatedeconomiestheysustain.Forthistochange,thereneedstobeafundamentalshiftinhowgovernmentsoperateandhowtheyrelatetotheircitizenry.

Thefundamentalpremiseofdemocracyisthatgovernmentsareaccountabletotheircitizensandthatgovernmentpoliciesserveandprotectthecommoninterest.Anirreplaceableaspectofthis

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commoninterestarethecommonsthemselvesthatunderlietheoperations,attitudes,andskillsthatmakepossiblethecollectiveformsoflivingandactingthatdefinethesocialandsolidarycharacterofahealthycivilsociety.Itfollowsthatunlessthecollectivevaluesofcivilsocietyandthecommongoodcandeterminehoweconomiesoperate,thepresentmodelofpoliticaleconomywilldonomorethantinkerwithasystemthatisindireneedofradicalreform.ThePartnerStateisonewayofusheringinthisreform.

Intheanalysisadvancedinthispaper,theproposalsforimplementingaPartnerStateapproachinEcuadorareanextensionofthepreceptsandaimsofthenationalconstitutionandtheNationalPlanforGoodLiving.Inthesedocumentsinherethoseprinciplesofrespectfornature,oftheopportunityforpeopletopursuetheirindividualandcollectivewellbeing,ofthepromotionofsocialandeconomicactivitiesthatpromotethepublicwelfare,andoftheconstitutionalrightofcommunities,whetherterritorialorcultural,toparticipatemeaningfullyintheaffairsofstatethataffectthem.

ButbeyondthespecificcontextofEcuador,thesearealsotheethicalfoundationsforanewformofgovernancethatplacesthecivilpowerinarelationshipofequalitywithgovernmentfortheexerciseofeconomicandsocialpoliciesthatwilloperateatnational,regional,andlocallevels.InthePartnerState,governmentbecomesapartnerandenablerofcivicsolutionstocollectiveproblems.Andwhiletheoperationsofthecapitalistmarketcontinue,asdothoseofthepublicsector,thesearecounterbalancedbythecollectiveandcivicaimsofthestate,co-constructedwiththeinstitutionsofcivilsociety.WeproposethattherealizationoftheconceptofBuen Vivirisnotachievablewithoutasystemicshiftofthestateinthisdirection.

TheconceptofthePartnerStateisanopportunitytosalvagewhatisgoodandnecessaryintheapparatusofgovernmentwhileopeningittothosecivicvaluesthatalonecanrestorelegitimacytoit.InitsaspirationstowardBuen Vivir,Ecuadorhasopenedadoortopioneersuchamodel.Ifitdoessoitwillofferanexampleofhowgovernmentcanindeedchangecoursetowardamorehumaneandsustainablefuturethroughtheengagementandempowermentofits

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citizenryintheaffairsofstate.

ButregardlessofwhetherEcuadorpursuessuchapath,anadmittedlydifficultoneeveninthebestofcircumstances,theprinciplesandaimsenvisagedinitsconstitutionandembodiedinitsNationalPlanofferedauniqueopportunitytoreflectonhowsuchidealsmightbemadereal.TheFLOKprojectwasavitalcatalystinthistask.TheideasthatweregeneratedinEcuadormightnowfindreceptivesoilfortheirfruitioninplacesfarbeyondthebordersofthissmall,complex,andrapidlyevolvingcountry.

1)

Isay,“proclaimed”becauseofthemanycontradictions,bothinpolicyandpracticethattheCorreagovernmenthasexhibitedinrecentyears.ThisisnottobelittletheworthyaimsofeithertheNationalPlanortheconceptofBuen Viviraspresentedinofficialrhetoric,orindeed,inthecountry’sinstitutions.Itisimportanthowever,tonotethediscrepancybetweenrhetoricandreality.↵

2)

Foranintroductionthisconcept,seeRestakis,“SocialandEconomicImplicationsofaSocialKnowledgeEconomy”,2014↵

3)

↵

4)

↵

5)

KennedyandLietaer,2004↵

6)

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MayumiHayashi,Japan’sFureaiKippuTimeBankinginElderlyCare:Origins,Development,ChallengesandImpact,InternationalJournalofCommunityCurrencyResearch,V.16,2012↵

7)

Inthecaseofschemessuchassocialimpactbonds,whicharenowalltherage,thereisnowadistressingbodyofevidencetoshowhoweasilyprivatecapitalcanexploitsocialinvestmentmodelstogenerateprofitsattheexpenseoftheservicestheyaremeanttosupport(seeMargieMendell,2012).↵

8)

Indivisiblereserveshavealonghistoryinco-operativesandremainakeymeansbywhichco-opscapitalizetheiroperations.Thereserveisaccumulatedovertimefromtheco-op’ssurplusesandmaynotbedistributedtomembers–itisacollectiveassetforuseasasocialbenefitandisthereforenottaxed.

↵

9)

MayumiHayashi,Japan’sFureaiKippuTimeBankinginElderlyCare:Origins,Development,ChallengesandImpact,InternationalJournalofCommunityCurrencyResearch,V.16,2012↵

10)

MargieMendell,privatecommunicationtoJ.Restakis,June19,2014↵

11)

Itisalsoimportanttonotethatthesmallfirmeconomyincludesthosesocialeconomyorganizationssuchasco-operativesandothersocialenterprisesthattradeinthemarket.↵

12)

NationalPlanforGoodLiving,2013-2017,3.3ActiveCitizenry,pg.

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28↵

13)

A.Margalit,TheDecentSociety,HarvardUniversityPress,1996↵

14)

ThenotionofthePartnerStatewasfirstelaboratedbyCosmaOrsiinhispaper,ThePoliticalEconomyofReciprocityandthePartnerState.↵

15)

ThissectionandthestructuralschematicthatitcontainsarederivedfromRobinMurray’sveryvaluablecriticalremarksonthispaper.↵

16)

WearedescribingheretheformalstructureoftheStateapparatusandweofcourserecognizethatthereareotherinformalcircuitsofpowerandinfluencethatlieoutsidethestructure,asforexamplebetweenvariousinterestgroupsandgovernmentministersandofficials.NotbeingmediatedthroughthesystemofrepresentativeaccountabilitythatlegitimizestheactionsoftheState,thesepowerrelations–althoughveryrealandinmanycasesdecisive–remainoutsidethescopeoftheformalinstitutionalrelationsbetweenStateandcivilpowerweareexploringhere.↵

17)

Personalnotestotheauthor,June2014↵

18)

SeealsoRestakis,HumanizingtheEconomy–Co-operativesintheAgeofCapital,NewSocietyPublishers,2010.↵

19)

TheservinggovernmenthasinstitutedapolicyofneighborhoodcouncilsthroughoutEcuador.However,insofarasthesecouncilsare

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directlyassociatedwiththepoliticalmovementoftheCorreaadministration,andnotthebroadercivilsociety,anewapparatuswithdirectaccountabilitytothebroaderpublicwouldberequired.↵

20)

J.Restakis,HumanizingtheEconomy–Co-operativesintheAgeofCapital,Ch.6,2010↵

21)

SeeJ.WalkerandA.Espinoza,TheViableSystemsModel,LaurelBankAssociates,2011;AComplexityApproachtoSustainability:TheoryandApplication,ImperialCollegePress,2011↵

22)

Thissakeyissue.ShouldtheCorreaadministrationsigntheproposedEuropeanFreeTradeAgreement(EFTA),governmentprocurementpolicieswhichareacentralpolicytoolfortransitiontoaPartnerStatemodel,wouldbeimpossibletoimplement.↵

23)

RyanNehring,SocialProtectioninEcuador:ANewVisionforInclusiveGrowth,ResearchBrief,August2012,No.28,InternationalPolicyCentreforInclusiveGrowth↵

24)

ibid↵

25)

EtsrategiaparaelCambiodelaMatrizProductiva,SENPLADES,2013↵

26)

AgendasparalaTransformaciónProductivaTerritorial:ProvinciadeBolívar,2013↵

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27)

J.Restakis,ChapterFour,HumanizingtheEconomy–Co-operativesintheAgeofCapital,2010↵

28)

A.BardiandS.Bertini,DinamicheterritorialienuovaindustriaDaidistrettiallefiliere,2005↵

29)

Afurtherdistinctionbetweencommonsandpublicgoodsisthatwhilebothentailusesthatarenon-excludable,commongoodsarerivalwhilepublicgoodsarenon-rival.Inthefirstcase,theuseofthecommonsbyoneindividualhasaneffectontheuseofthatcommonsbyothers,asinthecaseofacommonfishery.Inthecaseofpublic,non-rivalgoodssuchasapublicpark,theenjoymentoftheparkbyonepersondoesnotimpedeequalenjoymentoftheparkbyanother.↵

30)

http://www.labsus.org↵

31)

http://www.labsus.org↵

32)

RegulationonCo-operationbetweenCitizensandAdministrationfortheCareandRegenerationofUrbanCommons,Art.2,(a)↵

33)

ibid,Art.6,(3)↵

34)

ibid,Art.6,(4)↵

35)

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Note:therearealsoprovisionsconcerningtheexclusionofindividualsthatactincontraventiontothecommongoodortothepublicorprivateownershipofanasset,Art.12(3)↵

36)

ibid,Art.2,(h)↵

37)

ibid.Art.9,(1)↵

38)

http://www.eurosur.org/epitelio/cuenca/encuentros/leda.htm↵

39)

ibid,Art.9,(2)↵

40)

E.Ostrom,GoverningtheCommons,TheEvolutionofInstitutionsforCollectiveAction,1990↵

41)

B.Arifin,IndigenousKnowledgeandSustainableCommons:ThecaseofanIndonesianSubak,2005↵

42)

SeeAppendix1↵

43)

NationalPlanforGoodLiving,p.29↵

44)

www.evergreencooperatives.com↵

45)

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ReportonaFieldVisittoMondragon(Wrightet al2011)↵

46)

Cook,Dan(2013)RealisingtheCo-operativeUniversity.AconsultancyreportforTheCo-operativeCollege.Retrievedon13thJune2014fromhttp://dbms.ilrt.bris.ac.uk/media/user/162789/Realising_the_co-operative_university_FOR_DISEMMINATION.pdf↵

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Buildingasocialknowledgeeconomythroughtheopendesigncommonsanddistributedmanufacturing1

GeorgeDafermos

non-countryspecificversion:8Dec2014

Thisproposalisbasedonthepolicydocumentpreparedbytheauthor(Dafermos2014)onbehalfoftheFLOKSocietyresearchproject,withtheaimofdevelopingasetofpublicpolicyproposalsforthetransformationoftheproductivematrixinEcuadortowardsasocialknowledgeeconomy.However,whiletheofficialFLOKversionfocusesonaspecificcountry,theaimofthepresentversionistoaddresstheneed–whichisurgentlyfeltinmanycountriesaroundtheworld–todeveloparadicalalternativetothedominationofcognitivecapitalism.Assuch,thischaptercouldbeconsidereda‘non-countryspecific’versionoftheoriginalFLOKdocument.

DocumentStructure

Thispolicydocumentexaminestheapplicationofsocialknowledgeeconomyprinciplestothesecondarysectoroftheeconomy,withanemphasisonmanufacturing.TheIntroductiondissectstheconceptoftheknowledgeeconomy,highlightingtheroleofaccesstoknowledgeasthefundamentalcriterionfordeterminingitscharacter:incontrasttocapitalistknowledgeeconomieswhichblockaccesstoknowledgethroughtheuseofpatentsandrestrictiveIPrights,socialknowledgeeconomiesuseinclusiveIPrightstoprovidefreeaccesstoknowledge.Inthenextsection,A Critique of CognitiveCapitalism,welookathowtheuseofrestrictiveIPrightshasbeentheoreticallyjustified:inshort,IPrightsaresupposedtopromoteinnovationandproductivity.However,theavailableempiricalevidenceontheeffectofIPrightsoninnovationandproductivity

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furnishesnosuchproof.Onthecontrary,lookingatthewayinwhichcapitalistfirmsactuallyuseIPrightsreinforcestheconclusionthattheydonotpromoteinnovationbutareinfacthinderingit.

Thenextsection,Alternatives to Capitalist Models,introducestheFLOK(Free,LibreandOpenKnowledge)model,whichhasemergedinthecourseofthelasttwodecadesasapowerfulalternativetocognitivecapitalismanddescribesbrieflyitsmainfeatures:(a)thepracticeoffreesharingofknowledgeundergirdingit,(b)thepervasiveinvolvementofthesurroundingcommunityand(c)theuseoftheInternetasaplatformfordistributedcollaboration.

Inthefollow-upsection,Knowledge commons in the secondary sectorofthe economy,weillustratetheFLOKmodelanditsfeaturesthroughtwocasestudiesbasedontheRepRap3DprinterandtheWikispeedcarprojectrespectively,whichareparadigmaticofhowthesecondarysectorcouldbetransformedinthedirectionofapost-fossilfueleconomythroughthedevelopmentofdistributedmanufacturingstructuresenabledbytheopendesigncommons.

Inthenextsection,General principles for policy making,wesumuptheconclusionsdrawnfromthecasestudiesintheformofgeneralpolicyprinciples,which,asthefollow-upsectiondemonstrates,arealignedwiththeinternationalpolicyframework,asreflectedintheuniversallyendorsedpolicyobjectiveofdevelopingaknowledge-basedeconomy.Theconcludingsectiondevelopsthesepolicyprinciplesintoasetofpolicyrecommendationsforthedevelopmentofacollaborativeknowledgeeconomyfoundedontheknowledgecommonsofscienceandtechnology.

Introduction:theconceptandformsoftheknowledgeeconomy

Thispolicypaperexaminestheapplicationofprinciplesofsocialknowledgeeconomytothesecondary(manufacturing)sectoroftheeconomy.Butbeforeweproceedtoanin-depthexplorationofthoseprinciples,weneedtoclarifytheconceptoftheknowledgeeconomy,drawingadistinctionbetweensocialknowledge

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economiesandcapitalistknowledgeeconomies.

Incontrasttotraditionalconceptionsoftheeconomywhichcentreonland,labourandcapitalasthethreefactorsofproduction,theconceptofthe‘knowledgeeconomy’emphasisestheroleofknowledgeasthekeydriverofeconomicactivity(Bell1974;Drucker1969;foracriticalanalysisoftheconcept,seeWebster2006).Thisimplies,ofcourse,thatthedecisivemeansofproductioninaknowledgeeconomyisaccess to knowledge.Fromthisstandpoint,itispreciselythequestionofhowaccesstoknowledgeisbeingmanagedthatdeterminesthecharacterofaneconomicsystem.Capitalistknowledgeeconomiesusetheinstitutionofintellectualpropertytocreateconditionsofscarcityinknowledge:inthiswayknowledgeisprivatisedandlockedupinpropertystructureswhichlimititsdiffusionacrossthesocialfield.Asocialknowledgeeconomy,bycontrast,ischaracterisedbyopenaccessto knowledge(Ramirez2014)andsoreconfigurestheapplicationofintellectualpropertyrightstopreventthemonopolizationandprivateexpropriationofknowledge:‘knowledgemustnotbeseenasameansofunlimitedindividualaccumulation,noratreasurygeneratingdifferentiationandsocialexclusion’butas‘acollectiveheritage[which]is…acatalystofeconomicandproductivetransformation’and‘amechanismforemancipationandcreativity’(NationalSecretariatofPlanningandDevelopment2013,Englishversion,pp.61,41).Inanutshell,asocialknowledgeeconomyisaneconomywhichthrivesonthe‘opencommonsofknowledge’(NationalSecretariatofPlanningandDevelopment2013,Spanishversion,p.67);based,thatis,onknowledgeasaproductiveresourceaccessibletoallmembersofsociety.2

Acritiqueofcognitivecapitalism

Intellectualpropertyrightsandtheirsupposedroleincognitivecapitalism

Capitalistknowledgeeconomiesuseintellectualproperty(IP)rightsasmeansofenclosingknowledgeandasmechanismsbywhichtorealisetheextractionofmonopolyrentsfromknowledgethathas

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beenthusprivatised.Thatisideologicallyjustifiedasfollows:exclusiveIPrightsprovideincentivesforindividualsandcompaniestoengageinresearchanddevelopnewproductsandservices.Thatis,theypromoteinnovation:theexpectationofprofitableexploitationoftheexclusiverightsupposedlyencourageseconomicagentstoturntheiractivitiestoinnovativeprojects,whichsocietywilllaterbenefitfrom(e.g.Arrow1962).ButisthatactuallyanaccuratedescriptionofthefunctionofIPrightsincapitalistknowledgeeconomies?Dotheyreallyspurinnovation?

Asynopsisofempiricalevidenceontheeffectofrestrictiveintellectualpropertyregimesoninnovationandproductivity

Toanswerthisquestion,itisinstructivetolookattheavailableempiricaldataontheeffectofrestrictiveIPrightsontechnologicalinnovationandproductivity.ThecaseoftheUnitedStatesisindicativeofacapitalistknowledgeeconomyinwhichtheflowofpatentshasquadrupledoverthelastthirtyyears:in1983theUSPatentOfficegranted59.715patents,whichincreasedto189.597in2003and244.341in2010(USPatentOffice2013).Lookingatthesenumbersbegsthequestion:howhasthedramaticincreaseinthenumberofpatentsissuedbytheUSPatentOfficeovertimeimpactedtechnologicalinnovationandproductivityintheUS?Well,accordingtotheUSBureauofLaborStatistics,theannualgrowthintotalfactorproductivityinthedecade1970-1979wasabout1,2%,whileinthenexttwodecadesitfellbelow1%.Inthesameperiod,R&Dexpenditurehoveredaround2,5%ofGDP.Inshort,weseethatthedramaticincreaseinpatentshasnotbeenparalleledbyanincreaseinproductivityortechnologicalinnovation.Nomatterwhichindicatorofproductivityorinnovationweuseintheanalysis,weareinvariablyledtotheconclusionthat‘thereisnoempiricalevidencethatthey[patents]servetoincreaseinnovationandproductivity,unlessproductivity[orinnovation]isidentifiedwiththenumberofpatentsawarded’(BoldrinandLevine2013,p.3;also,seeDosietal.2006).

AnotherargumentoftenvoicedbyproponentsofexclusiveIPrightsindefenseofpatentsisthattheypromotethecommunicationofideasandthat,inturn,spursinnovation.Theyclaimthatifpatents

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didnotexist,inventorswouldtrytokeeptheirinventionssecretsothatcompetitorswouldnotcopythem(e.g.Belfanti2004).Fromthisstandpoint,thesolutiontotheproblemisatradebetweentheinventorandsociety:theinventorrevealshisinnovationandsocietygiveshimtherighttoexploititexclusivelyforthenexttwentyorsoyears.Presumablythen,totheextentthattheyreplacesociallyharmfultradesecrets,patentspromotethediffusionofideasandinnovations(Moser2013,pp.31-33).Inrealitythough,patentshaveexactlytheoppositeeffect,encouragingignoranceandobstructingthediffusionofideas.Inwhathasbecomeastandardpractice,‘companiestypicallyinstructtheirengineersdevelopingproductstoavoidstudyingexistingpatentssoastobesparedsubsequentclaimsofwillfulinfringement,whichraisesthepossibilityofhavingtopaytripledamages’(Boldrin&Levine2013,p.9;Brec2008).Evenifthatwerenotalwaysthecase,thewayinwhichpatentdocumentsarewrittenactuallyrendersthemincomprehensibletoanyoneexceptlawyers(Brec2008;Mann&Plummer1991,pp.52-53;Moser2013,p.39).

Therealfunctionofintellectualpropertyrightsincognitivecapitalism:howdocapitalistfirmsactuallyusethem?

What,however,morethananythingelsedisprovestheclaimedpositiveeffectofpatentsontechnologicalinnovationandcreativityisthewayinwhichpatentsareactuallyusedbycapitalistfirms.Inacapitalistknowledgeeconomy,patentsareusedprimarilyas(a)meanstosignalthevalueofthecompanytopotentialinvestors,(b)asmeanstopreventmarket-entrybyothercompanies(sotheyhavestrategicvalueindependentlyofwhethertheyareincorporatedinprofitableproducts)and(c)asweaponsinan‘arms-race’,meaningtheyareuseddefensivelytopreventorbluntlegalattacksfromothercompanies(Boldrin&Levine2013;Cohenetal.2000;Hall&Ziedonis2007;Levinetal.1987;Pearce2012).Itwouldtakeaheroicleapoflogicforanyoftheseapplicationsofpatentstobeseenasproductive.Ontheotherhand,thereisaplethoraofcasesinwhichtheeffectofpatentsoninnovationandproductivityhasbeenundoubtedlydetrimental.Indicatively,considerhowMicrosoftiscurrentlyusingapatent(no. 6370566)relatedtotheschedulingof

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meetingsinordertoimposealicensingfeeonAndroidmobilephones(Boldrin&Levine2013;Brodkin2011;Mueller2012a,2012b;Protalinski2010;Wingfield2010).Inthiscase,patentsbecomeamechanismforsharingtheprofitswithoutanyparticipationintheactualprocessofinnovation.Assuch,theydiscourageinnovationandconstituteapurewasteforsociety.Interestingly,notthatlongago,BillGates(1991),Microsoftfounder,arguedthat‘ifpeoplehadunderstoodhowpatentswouldbegrantedwhenmostoftoday’sideaswereinvented,andhadtakenoutpatents,theindustrywouldbeatacompletestandstilltoday…Afuturestartupwithnopatentsofitsownwillbeforcedtopaywhateverpricethegiantschoosetoimpose’.Itisironic,ofcourse,thatMicrosoft,notbeingabletopenetratethemobiletelephonymarket,isnowusingthethreatofpatentlitigationstoraiseaclaimoverpartofGoogle’sprofits.

Inconclusion,themannerinwhichpatentsareusedincapitalistknowledgeeconomiesmakesitblatantlyobviousthat‘inthelongrun…patentsreducetheincentivesforcurrentinnovationbecausecurrentinnovatorsaresubjecttoconstantlegalactionandlicensingdemandsfromearlierpatentholders’(Boldrin&Levine2013,p.7).Thisbecomesreadilyunderstood,consideringthattechnologicalinnovationisessentiallyacumulativeprocess(Gilfillan1935,1970;Scotchmer1991):Cumulativetechnologiesarethoseinwhicheveryinnovationbuildsonprecedingones:forexample,thesteamengine(Boldrinetal.2008;Nuvolari2004),butalsopersonalcomputers(Levy1984),theworldwideweb(Berners-Lee1999),hybridcars,YouTubeandFacebook.

Butifpatentshaveatbestnoimpactandatworstanegativeimpactontechnologicalinnovationandproductivity(Dosietal.2006),thenhowisitpossibletoexplain–especiallyfromthelegislator’sside–thehistoricalincreaseinpatentsandtheevermorerestrictiveIPregimesthatdevelopedinthelastthirtyyears?Manyanalystshaveponderedthisquestion.Theconclusiontowhichtheyhavebeenledisratherunsettling:theactualreasonbehindtheproliferationofpatentsandtheexpansionofIPlawsconsistsinthepolitical influenceof large, cash-rich companieswhichareunabletokeepupwithnewandcreativecompetitorsandusepatentstoentrenchtheirmonopolypower(Boldrin&Levine2013;Drahos&Braithwaiter2002).

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Alternativestocapitalistmodels

Therealenablersofinnovation

Since,aswehaveseen,restrictiveIPrightsdonotpromoteinnovation,thenwhatdoes?Inourcapacityasauthorsofthispolicydocument,wearesidingwithamultitudeofresearchersandpractitionersfromaroundtheworldinwhoseviewwhatpromotesinnovationisexactlytheoppositeofrestrictiveIPrights(e.g.Bessen&Meurer2008;Boldrinetal.2008;Drahos&Braithwaiter2002;Ghosh2005;VonHippel2005;Moser2013;Pearce2012a;Weber2005).Toelucidatethispoint,wewilldiscusstwocase-studiesinthefollowingsectionwhichdemonstratethatinnovationthrivesonopennessandfreesharingofknowledgeaswellasthatIPrightscanbeusedinawaythatisdiametricallyopposedtotheirapplicationincapitalistknowledgeeconomiessoastoinclude–ratherthanexclude–thebroadercommunityintheinnovationprocess.Inotherwords,thecase-studiescanbeseenasworkingexamplesofanalternativemodelofeconomicandtechnologicaldevelopmentenabledby(inclusiveIPregimesfoundedon)theopenknowledgecommons.Butbeforeweproceedtothecase-studies,letusbrieflyexaminethegeneraloutlinesandorganisingprinciplesofthismodel.

TheFLOKmodel

TheFLOKmodelisanalternativetomodelsofeconomicandtechnologicaldevelopmentarticulatedonthebasisofthelogicofcognitivecapitalism.Ithasthreemainfeatures:(a)itischaracterisedbythepracticeoffreesharingofknowledge,whichissustainedandreinforcedbyaninnovativeand,arguably,subversiveuseofIPrights;(b)itiscommunity-drivenand(c)itleveragestheInternetfordistributedcollaboration.

KnowledgeCommons

ThecornerstoneoftheFLOKmodelisthepracticeoffreesharingofknowledgeunderlyingit.Itsfoundingcredoisthattechnologyismostefficientlydevelopedinconditionsofopennessandcollaboration,ratherthansecrecyandknowledgehoarding.Toset

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upsuchopenandcollaborativestructuresforthedevelopmentoftechnology,theFLOKmodelhasevolvedlegalmechanisms(knownasopensourcelicenses[Wikipedia2014b]orsimplyasopenlicenses)whichensurethatanyoneisfreetouse,modifyandredistributetechnologiesproducedthroughtheFLOKmodel.Bydemocratisingaccesstotechnologyandknowledgethroughopenlicensing,theFLOKmodeleffectivelyempowerstheglobalcommunitytoparticipateintheproductiveprocess.Thereisonlyonelimitation:improvementsandmodificationsshouldbemadeavailableunderthesameconditions.Thus,technologiesandknowledgereleasedunderopenlicensesformanopen,yetprotected,knowledgecommonsthatanyonecanusebutnonecanexpropriate.Inthisway,openlicensingservesasaprotectionagainstthedangerofprivateexpropriationandcommercialco-optation(Kloppenburg2010;Moglen2004;O’Mahony2003).

Community-drivendevelopment

TheFLOKmodelchallengesthedominantviewthattheinstitutionalenvironmentmostconducivetothedevelopmentofknowledgeandinnovationisthatprovidedbylarge,hierarchically-organisedcorporations.Insteaditsuggeststhatopen,communitymodelstrumpcorporateonesinaccommodatingcreativityanddeliveringinnovation.Inpracticalterms,thismeansthatanyonecanparticipateinthedevelopmentprocessofaFLOKprojectbutnonecanexerciseheavy-handedcontrolovertheprojectortheotherparticipants(Benkler2006,p.105;vonKrogh&vonHippel2006).Tasksareself-selectedbyparticipants,whiledecision-makingiscollectiveandconsensus-oriented.Consequently,thedirectionofdevelopmentofFLOKprojectsderivesfromthecumulativesynthesisofindividualcommunitycontributions,ratherthanfromacentralplanner(Dafermos2012;WendendeJoode2005).

Internet-enabledcollaboration

TheFLOKmodelleveragestheInternetformassivelydistributedcollaboration.Forexample,asweshallseebelow,thedevelopmentoftheRepRap3Dprinterisdistributedacrosshundredsofhardwarehackersandhobbyistsfromallovertheworld,whoshareimprovementsandcoordinatechangesovertheInternet.Samegoes

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fortheenergy-efficientcardevelopedbytheWikispeedproject,whichwewillalsodiscussinthenextsection.

Knowledgecommonsinthesecondarysectoroftheeconomy

Case-study1:RepRap

RepRap3isanopensource4printerwhichcanbeusedtomanufacturethree-dimensionalobjects.Theprojectwhichspearheadeditsdevelopmentwaslaunchedin2005byDr.AdrianBowyeratBathUniversityintheUK,withtheaimofdevelopinganopensource3Dprinterthatcanreplicateitselfbyre-producingitsowncomponents,ultimatelycreatingasmall-sized,affordable,‘homebrewed’manufacturingdevicethatcanbeusedtoproducemostoftheobjectspeopleuseindailylife.

Openlicensinganddistributeddevelopment

Fromtheverybeginning,theprojectleveragedtheInternetfordistributedcollaboration:itopen-sourcedthedesignandalltechnicalspecificationsoftheRepRaptechnologysothatotherscouldexperimentwithitandimproveit.Basedoutofvarioushackerspacesandmakerlabsaroundtheworld,aloosely-couplednetworkofhardwarehackersandhobbyistssharingideasandmodificationssoonformed,resultinginrapidandsignificantimprovements.ThefirstversionofRepRap,codenamed‘Darwin’,wasreleasedinMay2007;version2(called‘Mendel’)followedin2009andversion3(‘Huxley’)ayearlater(seeFig.1below).By2010,theprojecthadevolvedinaglobalcommunityofabout5000membersandcommunitysizeisdoublingeverysixmonths(deBruijn2010).

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Fig.1:RepRapv.3(‘Huxley’),May2007

(Source:http://reprap.org/wiki/Huxley)

EffectofIPrightsondevelopmentof3Dprinting

Whataccountsforthisremarkablecommunitygrowth?Firstofall,toputthedevelopmentofRepRapintoperspective,onemustlookattheeffectofIPrightsonthehistoricaldevelopmentof3Dprintingtechnology.3Dprintinghasbeenusedinthemanufacturingindustryforaboutfortyyearsbutthefactthatitwasapatentedtechnologyeffectivelyexcludedthebroadercommunityfromparticipatinginitsdevelopment.Theninthemid-2000stheexpirationofasetofpatentson3Dprintinggalvanisedtheemergenceoftheopensource3Dprintingmovement,whichcoalescedaroundtheRepRapproject.Hackerspacesplayedacrucialroleinthisprocessofcommunityinvolvementbyprovidinghardwarehackersandhobbyistsaroundtheworldwithaccesstoasortofcommunalworkshoporshareabletoolshed,whichtheycoulduseforcommunityprojects.Thus,byhelpinghackersmoreeffectivelyorganisethemselves,suchuser-managedspacesformedakeycomponentofthedistributedtechnologicalinfrastructureunderlyingthedevelopmentofRepRap.5Asaresultofthisinfluxofcontributorsfromtheopenhardwarecommunity,theprojectsoonmanagedtoimproveRepRap’sdesignandperformanceandslashtheproductioncostof3Dprintersdowntoabout$500(Banwatt2013a,2013b,2013c).Inparallel,severalstart-upssprungoutofthebosomoftheRepRapcommunityandbegantomakelow-cost3DprintersbasedontheRepRapdesignfortheconsumermarket.

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Fig.2:Stratasysisa3Dprintingcompanyco-foundedbyScottCrump,whowasgrantedin1992akeypatentfor3Dprinting.Thepatentexpiredin2009.MakerBotIndustrieswasfoundedinthesameyear(Source:vonHippel2011,p.59)

Implications

Theinvolvementoftheopensource3DprintingcommunityinthedevelopmentofRepRapisnotconfinedtoexperimentationwithitsdesignparametersbutalsoextendsintotherangeofobjectsthatRepRapprinterscanmanufacture.Todate,RepRap3Dprintershavebeenusedtomakeclothes(Materialise2013),windturbines(Kostakisetal.2013),prostheticbodyparts(Molitch-Hou2013),wearabletechnologies(e.g.wearablemobilephones[Cera2012])andevenguns(Greenberg2013).Infact,thespectrumofobjectsthat3Dprinterscouldmanufactureispotentiallyinfinite:forexample,agroupofarchitectscalled‘KamerMaker’iscurrentlyusinga3DprintertobuildacanalhouseinAmsterdam,theNetherlands(KamerMaker;Holloway2013),whiletheEuropeanSpaceAgencyisplanningtobuildlunarspacestationsusing3D-printedbricksmadefrommoondust(Carter2013;EuropeanSpaceAgency2013a,2013b).AsUSPresident,BarackObama,says,‘3Dprintinghasthepotentialtorevolutionizethewaywemakealmosteverything’(quotedinGross2013).

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Theimplicationsofsuchaparadigmshiftinmanufacturingforenvironmentalsustainabilityareenormous.‘Becausetheyonlyusetheexactmaterialrequired,3Dprinterscouldeliminatewastefromtraditionalmanufacturing–inwhichupto90%ofrawmaterialisdiscarded’(Webster2013).Inadditiontorealisingeconomiesintheuseofrawmaterials,thetypeofdistributedmanufacturingundergirdedbyRepRap-like3Dprintingimpliesamassivereductioninglobaltransportationcostsattendantuponthelocalisationofproduction(Rifkin2011).Clearly,large-scaleindustrialinfrastructuresandthemassproductionmodelitselfarenolongerneededifpeopleareabletomicro-manufacturewhatevertheyneedinthecomfortoftheirhomes.Andthatisgoodfortheenvironment:unlikelarge-scaleindustrialmanufacturing,whichisbasedonthecheapavailabilityoffossilfuels,‘home3Dprinting’isillustrativeofanon-demandmanufacturingmodelwhichemphasisesapplicationthatissmall-scale,decentralised,energy-efficientandlocallycontrolled.Thus,thediffusionofsmall-sized,affordable3Dprinterspromotesamodelofenvironmentallysustainabletechnologicalandeconomicdevelopment.

Tosumup,theRepRap3Dprinterisparadigmaticofacaseinwhichtheopendesigncommonsenabledaglobalcommunitytoengageindistributed,participativedevelopmentwhich,inturn,resultedinsignificanttechnicalimprovementsandproductioncostreductions,pavingthewayfortheriseofanewmarketinlow-cost3Dprinters.Inparallel,theRepRapprojectillustratestheworkingsofadistributedmanufacturingmodelthatisgermanetoapost-fossilfueleconomy.

Case-study2:Wikispeed

Wikispeedisaprojectfocusedonthedevelopmentofanenergy-efficientcar(seeFig.3below).6WhatisespeciallyinterestingabouttheWikispeedcaristhatitisdevelopedbyaglobalnetworkofvolunteers,who,byusingmethodsdrawnfromtherealmofopensourcesoftwaredevelopment,havemanagedtoreducedevelopmenttimeandcostdowntoafractionofthatwhichconventionalcarmanufacturingrequires.

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Fig.3:TheWikispeedcar(Source:WikispeedProject2013)

ThebirthofWikispeedcanbetracedbacktothe2008ProgressiveInsuranceAutomotiveX-Prizecompetitionforthedevelopmentofenergy-efficientcars,whichcapturedtheattentionofJoeJustice,aSeattle-basedsoftwareconsultant.WhatsetJusticeapartfromtheotherparticipantsinthecompetitionwashisstrategyandhisresolvetoapplyopensourcesoftwaredevelopmentmethodstocarmanufacturing.Inthebeginning,hewasalone.ButasheannouncedhisplanontheInternet,volunteerscametohelpandinthreemonthshehadateamofforty-fourvolunteersandafunctioningprototype(Denning2012;Halverson2011).Nowtheprojectisjointlydevelopedbymorethan150volunteersdistributedaroundtheworld,whoaimtodeliverWikispeedasacompletecarfor$17,995USDandasakitfor$10,000USD(Wikispeed2012).

Tospeedupthedevelopmentprocessandreduceitscost,theWikispeedteam,inspiredbythelean manufacturingandopen sourcephilosophy,evolvedanapproachthatconstrastssharplywithconventionalmanufacturing.First,theentiremanufacturingprocessisdesignedwithaviewtominimisingtheexpenditureofresourcesthatdonotaddanyvaluetotheend-productfromanend-user’spointofview.Forexample,whileanaveragemanufactureruses‘a$100MCNCmillingmachine…WikiSpeedusesa$2.000machinefoundintheaverageFabLab…Whilemoderncarsembedvariouscostly,non-interoperable,proprietarycomputerstomanagevariousfeaturesrangingfromairbags,togaslevels,toairconditioning,WikiSpeedusesasingle$20Arduinocircuitboard’(Tincq2012).

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Second,modularityisthecoredesignprinciple:Wikispeedismadeupofeightcomponentsthatcaneasilyberemovedandre-assembled(seeFig.4below).Suchaproductarchitecturemakesiteasytomodifyandcustomisethecar,forindividualcomponentscanbemodifiedwithoutnecessitatingchangesintherestofthecar.Asaresult,‘thewholecarcantransformfromaracecar,toacommutercar,toapickuptruck,bychangingonlythenecessaryparts’(Tincq2012).

Fig.4:TheWikispeedmodulardesign(Source:Tincq2012)

Third,scaleisnotimportanttoWikispeed:‘carsareproducedon-demand,whenaclientofferstopayforit.ThisimpliesalmostnocapitalinvestmentupfronttoproduceaWikispeedcar’(Tincq2012).Throughtheuseofon-demandmanufacturingandleanproductionmethods,Wikispeedhasachievedsignificantdevelopmentcostreductions.ButtheproductionofWikispeedisnotonly‘lean’and‘on-demand’,itisalsodistributed:Wikispeedisbeingdevelopedbyadistributednetworkoflargelyself-managingteams–eachworkingatitsowngarage–whocoordinatetheirworkthroughtheInternet.Thiskindofcomputer-mediatedcollaborationisenabledbythemodularstructureoftheWikispeedcar,asproductcomponentscanbedevelopedautonomouslyandindependentlyofeachotherbydifferentindividualsorteamswithlittle,ifany,needofcentralcoordination(Dafermos2012).Theresultingdistributed

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organisationalstructure,accordingtotheWikispeedteam,iskeytorealisingsignificanteconomies of scopeandflexibility:so,toreinforcedistributedmanufacturing,‘WikiSpeedmembersarecurrentlypracticingtobuildcarswithinarectangularspacemarkedontheground.Byachievingthis,microfactoriescouldbeencapsulatedwithincontainers,andshippedtowherethereisdemandforlocalproduction.Oncetheworkisdone,amicrofactorycouldbemovedtoasurroundingareatomeetnewdemand’(Tincq2012).Thesustainabilityimplicationsofsuchaparadigmshiftinmanufacturingareobvious:justlikeRepRap-like3Dprinting,Wikispeedisproposingamodelofdistributedmanufacturingwhichleveragestheglobalopendesigncommonsforlocalproduction.Unlikelarge-scaleindustrialmanufacturing,whichdependsonthecheapavailabilityoffossilfuels,Wikispeed’son-demandmanufacturingmodelemphasisesapplicationthatissmall-scale,decentralised,energy-efficientandlocallycontrolled.Inthatsense,itpromotesamodelofsustainabledevelopmentthatrecognisesthelimitstogrowthposedbyfiniteresourcesandsoorganisesmaterialactivitiesaccordingly(Bauwens2012b).

Fourth,thedevelopmentoftheWikispeedcarisbuiltaroundthedefininghallmarkofopensourcesoftwareproduction:alltechnicalspecifications are shared freelywiththecommunitysothatanyonecancontributetoitsdevelopment.Inthisway,byopeninguptheproductdevelopmentprocess,theWikispeedprojectcantapintothecontributionsofaglobalcommunityofvolunteers.ButfortheWikispeedteam,freelysharingdesigninformationisnotonlyameansofengagingtheglobalcommunityinthecollectivedevelopmentoftheWikispeedcar,butalsothebasisofamodelofdistributed entrepreneurshipwhichallowshobbyistsandenthusiastsfromallovertheworldtodownloadtheblueprintsofWikispeedandusethemasaspringboardfordevelopingtheirowncarsattheirgarage.7

Todate,theWikispeedprojecthasfinanceditsoperationmainlythroughcrowdfundingcampaignsandsmalldonationsfromsympathisers(theso-called‘micro-investors’).Foritslong-termsustainability,however,itaimstosellthecarsitmakes.ThepriceforaWikispeedprototypeis25,000USDandtheprojectiscurrentlyworkingonthedevelopmentofacommutercarwhichwillbe

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launchedasacompletecarfor$17,995USDandasakitfor$10,000USD.Inrecognitionofitscommunitycharacter,theWikispeedprojecthasannouncedthattheproceedsfromsaleswillberedistributedbacktothecommunityofcontributors.8

Tosumup,thecaseofWikispeed,likethatofRepRap,demonstrateshowatechnologyprojectcanleveragetheopendesigncommonsandtheInternettoengagetheglobalcommunityinitsdevelopment.Mostimportant,Wikispeedproposesamodelofdistributedmanufacturingthatiswell-suitedtoapost-fossilfueleconomy:amodelwhichissmall-scale(‘on-demand’),decentralised,energy-efficientandlocallycontrolled.

GeneralPrinciplesforPolicyMaking

Throughtheabovecase-studies,wehavecometoidentifyasetofenablingconditions,fromwhichwecandrawseveralgeneralprinciplestoguidepolicymakingeffortsaimedatreinforcingthedevelopmentofasocialknowledgeeconomy.

The Commons as a key enabler.Itisobviousthattheemergenceofthecommunity-drivendevelopmentmodelcharacteristicofbothWikispeedandRepRapwouldhavebeenimpossibleintheabsenceoftheopendesigncommons.Takingthisintoconsideration,itisobviousthatpolicymakingshouldbegearedtowardssupportingandenrichingthecommonsasashareableinfrastructureforthesocialknowledgeeconomy.

The importance of distributed technological infrastructures.ThedevelopmentoftheFLOKmodelisunthinkablewithoutadistributedtechnologicalinfrastructure(Bauwens2005;Benkler2006).Atthemostbasiclevel,thescalingupoftheFLOKmodelrequiresdistributed access(a)totheInternet,whichmembersofFLOKprojectsusetoexhangeinformationandcoordinatetheiractivities,and(b)tofixed capital,bywhichwemeanaspectrumofhardwaretechnologiessuchaspersonalcomputersand3Dprinters,whichconstitutetheessentialmeansofproductioninthissetting.Therroleofsuchadistributedtechnologicalinfrastructureisoftenperformedbyhackespaces(aswellashackerlabs,makerspacesandsoon),whicharecommonlyusedbyindividualsandgroupswith

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limitedfinancialresourcesasalocal,physicalplatformforthemutualisationofresourcesandtheprovisionofsharedaccesstothosemeansofproductionthatarenotyetasdistributedandgenerallyavailableaspersonalcomputersandInternetconnectivity.Assuch,theyformaterritorialinfrastructureforthedevelopmentofcommons-oriented,openhardwareprojectssuchasRepRapandWikispeed.

The need for investment in knowledge.Thedevelopmentofsuchdistributedtechnologicalinfrastructuresbyitselfisunlikelytogeneratepositiveresults,unlesspeople,too,knowhowtousethem.Thetask,therefore,ofbuildingtheseinfrastructuresshouldbecomplementedwithandreinforcedbyappropriateprocessesandstructuresoflearningdesignedtoharnessthediffusionof‘massintellectuality’(Bauwens2005;Virno2001;alsoseeRushkoff2004)thatisrequiredfortheexpansionoftheFLOKmodel.

The importance of access to credit and investment resources and the roleof public policy.Aswesaw,inordertoraisemoneytofinanceitsoperations,theWikispeedprojecthasturnedtoitsbaseofsupporters,onwhosecontributionsitrelies,andtocrowdfundingcampaignsasavehicletoreachouttotheInternetcommunity.Thischoicetomobilisethecommunitywaslargelydictatedbythefactthattheprojecthasbeensofarunabletoattractinvestmentcapitalfromtheprivatesector.Thatisnotaccidental.Onthecontrary,itisthegeneralcasewithtechnologieslikeWikispeedwhicharenot‘protected’byrestrictiveIPrights,giventheprivatesector’saversiontoinvestintechnologiesandprojectsthatdonothavethepotentialtogeneratepatentableresults.Forexample,thatiswhycapitalistinvestmentsinagriculturalscienceandtechnologyhavelongfavouredthedevelopmentofproductssuchasseedsthatcannotbereproducedinthefarmingprocess,ratherthanagroecologicalmethodswhicharerenderedpracticallyun-patentablebyvirtueoftheirinherentlycollectiveandcommunalcharacter(Vanloqueren&Baret2009,p.977).Fromaninvestmentstandpoint,the‘problem’withartefactsandmethodsthatarenotpatentedliesinthefactthattheyarenotlockedupinpropertyrightswhichcanbeleveragedtocapturerents.Thereisnothingstrange,therefore,abouttheabsenceofcapitalistinvestmentincommons-oriented,opensourcetechnologyprojectslikeWikispeedorRepRap,whichwouldnothave

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survivedwithoutthesupportofcivilsociety.Thefact,however,thatthebusinesssectorcannotbereliedupontodeveloptheproductsandtechnologiesthatfuelasocialknowledgeeconomysuggeststheimportanceofsettingupappropriatepublicpoliciestoreinforcethedevelopmentofthecommonsofscienceandtechnology.

Beforeweproceedtodeveloptheseprinciplesintopolicyrecommendationsforthecreationofasocialknowledgeeconomy,itisimportanttotakeintoconsiderationtheinternationalinstitutionalandpolicycontextinwhichtheyhavetobegrounded.

ThePolicySetting

Thereishardlyacountryanywherearoundtheworldwhichdoesnotendorsethepolicyobjectiveofdevelopinga‘knowledgeeconomy’asavehicleofmodernisingandstrengtheningtheeconomy.Indicatively,thepolicyoftheEuropeanCommissionfortheeconomyoftheEuropeanUnionhasbeenfocusedonthedevelopmentofaknowledge-basedeconomyasitsprimarytarget.Theso-calledLisbonStrategy(alsoknownasLisbonAgendaorLisbonProcess),whichwasdevisedatameetingoftheEuropeanCouncilinLisbonin2000,articulatedaten-yeardevelopmentplanfortheEUeconomyinwhichtheconceptoftheknowledgeeconomyfiguresprominently.Morespecifically,accordingtothatplan,the‘strategicgoal’oftheEUis‘tobecomethemostcompetitiveanddynamicknowledge-basedeconomyintheworld’(EuropeanUnionParliament2000).In2010,theEuropeanCommission(2010)formulatedanupdatedstrategyforthenexttenyears,knownasEurope 2020,which,intheessentialfeaturesofitseconomicpolicy,reinforcestheimportanceconferredbytheLisbonStrategyuponthedevelopmentofathrivingknowledgeeconomyintheEU.Thus,thegoalofdevelopinganeconomydrivenbytheproductiveforcesofknowledgeandinnovationisrightatthetopofthelistwiththe‘threemutuallyreinforcingpriorities’oftheUnion’scurrenteconomicagenda.9

Cruciallyenough,insomecountriestheexistingframeworkforpublicpolicymakingevincesastrongorientationtowardsthecommons,layingemphasisupontheneedtoinvestthegoalof

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buildingaknowledgeeconomywithasocialcharacter.Forexample,thenationaldevelopmentplanofEcuador,knownasNationalPlanforGoodLiving(NationalSecretariatofPlanningandDevelopment2013),isparadigmaticofsuchapolicyframework:giventhat‘individualandsocietalfreedomrequireemancipationofourthought’(p.61)andthat‘knowledge,morethanameansofknowing,isaninstrumentforindividualfreedom[and]forsocialemancipation’(p.67),theNationalPlanforGoodLivingwarnsthat‘knowledgemustnotbeseenasameansofunlimitedindividualaccumulation,noratreasurygeneratingdifferentiationandsocialexclusion’(p.61).Onthecontrary,inthecontextofdevelopingaknowledgeeconomywithasocialcharacter,knowledgeshouldbeapproachedas‘acollectiveheritage[which]is,inaddition,acatalystofeconomicandproductivetransformation’(p.61).Asidefromfurnishingacharacteristicexampleofapolicycontextinwhichthegoalofbuildingaknowledgeeconomyisembeddedinabroadersocialistprogramofeconomicandproductivetransformation,thecaseofEcuadorisimportantbecauseoftheroleattributedtotheknowledgecommonsasanagentofthattransformation.

ThenextsectionsituatestheprinciplesthatenabletheemergenceoftheFLOKmodeofproductionintheaforementionedpolicycontextandputsforwardseveralpolicyrecommendationsthataredesignedtosupportandreinforcethegoalofbuildingasocialknowledgeeconomy.

PolicyRecommendations

WehaveseenhowpatentsinspecificandrestrictiveIPrightsingeneralruncountertotheaimsandneedsofasocialknowledgeeconomy.Incontradistinction,asourcase-studiesdemonstrate,thepooloftheopen,yetprotected,knowledgecommonsestablishedbyfree/openlicensesisindispensabletothedevelopmentandoperationofasocialknowledgeeconomy.Consequently,tosupportthedevelopmentoftheknowledgecommonsofscienceandtechnologyandprotectitagainstthedangerofprivateenclosure,wepropose:

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Theadoptionoffree/openlicenses,suchastheGNUGPL,10forthelicensingofscientificandtechnologicalartefacts.Thede factoabolitionofthepatentsystem.Thiscanbedonethroughtheuseofroyalty-freeandcopyleft-stylepatentlicenses,thatis,bymeansof‘licensingpatentsforroyalty-freeuse,ontheconditionthatadopterslicenserelatedimprovementstheydevelopunderthesameterms’(Wikipedia2014d).

Moreover,tosupportthedevelopmentofcommons-orientedprojectsandorganisations,wepropose:

Theprovisionofspecialeconomicincentivesforcommons-orientedprojectsandorganisations.Thiscanbeimplementedinavarietyofways:forexample,throughtaxbenefitsand(state-supported)micro-creditsystems.Thedevelopmentofalegalframeworkthatprovidesco-opsandcollectivistorganisationsoperatinginthesecondarysectorwiththeorganisationalautonomyaswellasinstitutionalsupportwhichisrequiredfortheiroperation.11

Weremarkedhowtheuseofhackerspaces,makerspaces,fablabsandco-workingspacesforthemutualisationofresourcesandtheprovisionofsharedservicestomembersconstitutesacrucialinfrastructureforbothco-locatedanddistributedcognitivework.Thus,tosupportthedevelopmentofshareable,territorialinfrastructuresforcognitivework,wepropose:

Thatsupportivepoliciesbedevelopedforthesettingupofhackerspaces,hackerlabs,makerspacesandco-workingspacesasaterritorialinfrastructureforcognitivework,skillsharingandtechnologytransfer.

Concomitantly,todemocratiseaccesstocreditandinvestmentresources,wepropose:

Thecreationofacommunity-managedCommunity InvestmentFundforcommons-orientedprojectsandorganisations,suchasthatoperatedbyco-opfederationsinNorthernItaly(i.e.theso-called3%Fund)12andproposedbyKleiner(2010,pp.23-25)for

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thesupportofworker-ownedorganisations.

Consideringthatpublicprocurementcanbeusedasaveryeffectiveinstrumenttopromoteopenandfreetechnologies,weproposethattheuseoffreeandopentechnologiesbeencouragedinpublicprocurementprograms.Forthatpurpose,weproposethatpublicprocurementlegislationbeamendedtoprioritisetheuseoffreetechnologies.

Equallyimportant,ouranalysishashighlightedthe importance of thediffusion of knowledgeinempoweringpeopletoparticipateinprojectsofatechnicalcharacter.Thatiswhyitisimperativetopopularisefreeknowledgeandmakeitanintegralpartoftheeducationsystem.Withthisaiminmind,wepropose:

Theintroductionoftrainingintheuseanddevelopmentoffreetechnologiesintothebasicschoolcurriculumandacrossuniversityprograms.There-orientationofscienceandtechnologytowardsmodelsofopen science(Wikipedia2014c)withtheaimofmakingthefruitsofscientificandtechnologicalresearchaccessibletoallthemembersofsociety.Toachievethis,weproposethatpubliclyfundedresearchanddevelopmentinscienceandtechnologybereleasedunderfree/openlicenses(e.g.GNUGPL).13

Thesettingupofspacesforinformaltraining(continuouseducation)asanenablinginfrastructureforthedevelopmentofafreeculture.

Last,itgoeswithoutsayingthatpoliciesaimedatthetransformationoftheproductivematrixinthedirectionofdistributedproductionstructuresbasedontheopendesigncommonsshouldberesponsivetotheexigenciesofthelocalcontext.Tothisend,wepropose:

ThataNationalObservatoryforFreeTechnologiesbesetupwiththeobjectivetoassesstheeconomicviabilityandfitnessoffreetechnologiestomeetexistingneedsandtoprovideexpertsupportforthetaskofdesign,implementation,monitoringandevaluationoftheabovepublicpolicies.

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*****

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1)

Thischapterisbasedonthepolicydocumentpreparedbytheauthor(Dafermos2014)onbehalfoftheFLOKSocietyresearchproject,withtheaimofdevelopingasetofpublicpolicyproposalsforthetransformationoftheproductivematrixinEcuadortowardsasocialknowledgeeconomy.However,whiletheofficialFLOKversionfocusesonaspecificcountry,theaimofthepresentversionistoaddresstheneed–whichisurgentlyfeltinmanycountriesaroundtheworld–todeveloparadicalalternativetothedominationofcognitivecapitalism.Assuch,thischaptercouldbeconsidereda‘non-countryspecific’versionoftheoriginalFLOKdocument.↵

2)

Itisnoteworthythattheconceptofthesocial knowledge economyhasbeenremarkablyunder-theorisedintheexistingliterature(availableinbothenglishandspanish).Infact,inthefewcaseswhereitappears,theconceptisusedtorefertotheroleoftheso-called‘socialeconomy’–seenasthatsectoroftheeconomywhich

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isseparatefromthepublicandprivatesector–inthebroader(knowledge)economyofwhichitisbutacomponentpart(e.g.,seeMacLeodetal.1997).TheonlyexceptionthatweareawareofisRamirez(2014)andtheFLOKSocietyProjectpolicypapers,whichemploytheconceptinaradicallydifferentsense,definingitasaneconomycharacterisedbyfreedomofaccesstoknowledge.↵

3)

URL:<http://reprap.org>↵

4)

TheRepRapdesigninformationislicensedundertheGNUGPL.↵

5)

ItisnocoincidencethatthemajorityofRepRap3Dprintershavebeenprototyped,testedandoperatedatsuchuser-managedspaces.Indicatively,thefirstRepRap3DprinterinthecityofHeraklion,Greece(whichistheauthor’shometown)wasdevelopedatthetolabakihackerspace(http://tolabaki.gr).↵

6)

URL:<http://wikispeed.org>↵

7)

Wikispeedconsidersitselftobesuchadistributive enterprise:‘atransparententerprisethatpromotes—atthecoreofitsoperationalstrategy—thecapacityforotherstoreplicatetheenterprisewithoutrestrictions…[akindof]anopenfranchisesystemthatfocusesonbeingreplicatedbyothers’(OpenSourceEcology2012;Thomson&Jakubowski2012:62).↵

8)

Wikispeedhasdevisedaninterestingmethodofremuneratingcommunitycontributionstotheproject.Accordingtotheprojectwebsite:‘IfIgivemoney,time,cookies,orsuppliestoWIKISPEEDandWIKISPEEDisprofitable,WIKISPEEDwillpaymebackthevalue

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ofwhatIputinplusinterestcommensuratewiththeirlevelofsuccess’(<http://wikispeed.org/join-the-team/our-ethics/>).↵

9)

TheothertwoprioritiesoftheEurope2020strategyconsistinthepromotion‘ofamoreresourceefficient,greenerandmorecompetitiveeconomy’andof‘ahigh-employmenteconomydeliveringsocialandterrotorialcohesion’(EuropeanCommission2010).↵

10)

URL:<http://www.gnu.org/copyleft/gpl.html>↵

11)

Foranelaboratediscussionofwhatthattaskentailsandhowitcanbeachieved,seetheFLOKpolicydocumentsbyRestakis(2014a,2014b).↵

12)

The3%Fundisoperatedbyco-opfederationsinItalywherebymemberco-opscontribute3%oftheirannualprofitstoacollectiveFundthatisusedforinvestmentpurposes(Logue2006;Mancino&Thomas2005).↵

13)

ForadiscussionoftheproposaltoreleasepubliclyfundedR&DundertheGNUGPL,seeBoldrinandLevine’s(2013,p.19)aswellasPearson’s(2012a)recentcontributionintheJournal of EconomicPerspectivesandNaturerespectively.↵

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FromBuenVivirtoCommonsTransition:AnInterviewwithJaniceFigueiredo

Tofinishthebook,wepresentthisexclusiveinterviewwithJaniceFigueiredo,researchcoordinatorfortheCommons’InfrastructureforCollectiveLifeinvestigationintheFLOKSocietyproject.JanicespoketousaboutherownexperiencecollaboratingwithandlearningfromtheindigenouspeopleinEcuador.

TheinterviewcentersonsomeofthemorepracticalaspectsoftheFLOKproject,herinteractionasaresearcherwithlocalcivicgroups,andthefutureofCommonsTransition.

Whatisyourbackground,andhowdidyougetinvolvedintheprojectinEcuador?

IamaBraziliancitizenwhohaslivedabroadforabout20years,bothintheUnitedStatesandinEurope(Paris,France).IworkedattheInter-AmericanDevelopmentBank(IADB)asITprojectmanageruntil2009,whenIdecidedtoradicallychangemylifeandstartedplacingmyactions,workandstudiesinareasthat,inmyunderstanding,havethepotentialtogenuinelytransformtheworld

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intoamoreinclusiveandfairerplace.Idirectedmyintereststoresearchingthefieldsofcollectiveintelligence,collaborativemovements,P2Pdynamics,thecommons,theopenandsharingsociety,socialbusiness,complementarycurrencies,sustainabledevelopmentandpovertyreduction,havingaparticularinterestinexploringalternativemodelstotheconventionaleconomicparadigmsbasedincentralizationandscarcity.

Ispentmostof2012inBrazil,andgotactivelyinvolvedwithseveralP2P-relatedprojectsinRiodeJaneiro,whereIcurrentlylive.IjoinedacademicresearchgroupsontheCollaborativeEconomyandPeerProductioninBrazil,carriedoutcollaborativeprojectsinRio’sfavelas,tookpartincivilsocietyandsocialmovementinitiativesthatproposedcommons-orientedalternativesfortheplanet(suchasthePeople’sSummit),andgotinvolvedwithdifferentprojectsrelatedtothesharingeconomyinBrazil.

IhaveaB.Sc.inComputerScience,aM.Sc.inStrategyandMarketing,andhavecompletedpost-graduatecoursesintheareaofSustainableDevelopment.

InSeptember2013,MichelBauwens-whoIfirstmetinBrazilinJuly2012,ontheoccasionoftheRio+20UNmeeting-invitedmetobepartoftheresearchteamthatwouldbeproducingpublicpolicyrecommendationsforatransitiontoaSocialKnowledgeEconomyinEcuador.Iimmediatelyacceptedtheinvitation!

YouvisitedalotofurbancommonscommunitiesinQuito.Whatisyoursummaryoftheirexperiencesandconcerns?

Myresearcharea,“Openinfra-structuresforcollectivelife”,exploredhowcitizensandcommunitiescouldbenefitfromaswellastakeanactivepartinthebuildingofaSocialKnowledgeEconomy.Ontheonehand,weinvestigatedhowcommunitiescould,inanautonomousway,createandmaintainmutualizedinfrastructuresneededfortheirlives,suchashousingandfoodsystems.Ontheotherhand,weexploredhowknowledgesystemscouldbecreatedandgovernedbycommunities.

Theprinciplesofsolidarityandcooperationaredeeplyrootedinthe

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Ecuadorianculture.Severalcommunityneedsareachievedthroughautonomouspracticeswhoseoriginscomefromthetraditionsoftheindigenousquechuas.Themostwell-knownoftheseinitiativesaremingas.Thesearecommunityworkstowardscommongoalsthathavebeenextensivelyusedinbothurbanandruralareastosupplytheneedsofthecommunities,suchasimprovementofroadsorcommunalareas,andenergyprovision,andalsoasameanstocooperateamongfamilies,suchasinthecaseofthebuildingofahouse.La minga de la quiteñidad,ayearlycommunity-ledeventheldinsomeQuitoneighbourhoods,chosetopromoterecyclinginonearea(December2014).ThroughmingasthemainvaluesoftheAndeanindigenouscultureareexpressed:unionandsolidarityamongcommunities.Mingasareseenasahugecelebrationswherework,food,collaborationandaccomplishmentsareshared.Ranti-rantiisanothersolidaritypracticeintrinsictotheEcuadorianculture.Itrepresentstheconceptofreciprocityandabundance:“IgivetoyoubecauseNaturehasgiventome”.Truequeisapracticeofexchangeusedatopenfoodmarkets,wheresellersexchangewhathasn’tbeensoldamongthemselves.Randimpaareopenspacesself-organizedbycommunities,wherediscussionsanddecisionsaboutthecommunitytakeplace.

Wevisitedseveralinitiativesthatfollowtheprinciplesofself-governancethatdevelopandnurturecooperationwithintheircommunities.Iwillmentiontwoofthem:thefirst,“Comuna TolaChica”representsagroupof400peoplethatliveandworkinacommunalmanner.Thecommunitytriestopreserveitsculturalrootsthroughthedevelopmentoflocalprojects,suchastheSchoolofTraditionalKnowledge,andtostimulateecologicalandsustainablelocalprojectslikethebuildingofalocalcommunalhousemadewithsuper-adobeconstruction.AlldecisionsconcerningtheComunaaretakeninacollective,participatoryway,throughassembliesopentoallresidents.Landownershipiscommunalandallcomuñeroshavethesamerightsoverthelands.

Asecondprojectthatillustratescooperationis“Alianza Solidaria”.Thisprojectwaslaunchedtotacklethelackofaccesstoqualityandaffordablehousing,andwasexpandedtothebuildingofanautonomous,cooperativecommunitycapableofsolvingtheirownproblemsinacooperativeway.

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OneofthemainconcernsI’venoticedamongcommunitiesisthattheseprinciplesofsolidarityandcooperationarebeinglost;therearefarfewermingasnowthaninthe1970’s.

Severalindividualssuggestedthatpeoplehavebecomemoreindividualisticandcompetitiveasaresultofbeinginfluencedbythevaluespromotedbycapitalism;peopleengagelessandlesswithtraditionalsolidaritypractices.Anotherconcernobservedisthatnewerindigenousgenerationsnolongerwanttolearnquechua,dressusingtheirtraditionalcustomsorpreservetheirculture,asthemediapropagatestheideathatwhatcomesfromtheWesternworld(EuropeandtheUnitedStates)isbetterandrepresentsthevaluesofamoredevelopedpeople.

Youalsoworkedwithindigenouscommunitiesandcoordinatedapolicypaperthatwaswrittenbyindigenousactivistscholarsthemselves.Whatweretheresults,andhowwasthepaperreceived?

AtFLOKmeetingsconductedduringtheprocess,thesubjectof“AncestralKnowledge”wastheonethatraisedthegreatestinterestandthemostquestionsfromthecommunitiesandacademia.

Amongthe17policypapers,the“Ancestral,TraditionalandPopularKnowledge”paperwastheonlyonewrittenbyagroupcomposedexclusivelyoflocal,Ecuadorianpeople.Thatpaperdiscussesandproposespoliciesonhowtopreserve,manageandimplementtraditionalandancestralknowledgeandpractices,respectingthediversityofculturesandnationalitiesofEcuador.

Ecuadorhasatotalof14nationalitiesand18pueblos,anditwasquiteachallengetoembracesuchadiversityofvisionsandtraditionsinasinglepaper.Initially,weengaged5indigenousscholarsandactivistsfromdifferentethnicities,eachonedeeplyinvolvedwiththesubjectwithintheircommunities,tocollectivelywriteafirstversionofthepaper.Lateron,werealizedthepapershouldalsocontemplatenon-indigenousvisions,suchasthoseoftheAfro-Ecuadoriancommunity.

Thecurrentversionofthepaperistheproductofacollectivework

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developedbyindigenous,Afro-Ecuadorian,mestizoandwhiteEcuadorianscholarsandactivists.Thiscompositionofmultiplevisions,allfromlocalactors,givesauniquestrengthtothepaperanditspolicyrecommendations.

Thepolicypaperpresentsproposalsforthemanagementofancestral,traditionalandpopularknowledgeinfivemaindomains:1)ancestral,traditionalandpopularknowledgemustbedeclaredheritageofthecommunitiesandpeoples;2)intercultural,bilingualeducationmustbepromotedandstrengthened;3)promotionofpropermanagementofknowledgeaboutbiodiversityandtraditionalandancestralagriculturalpractices;4)strengtheningoftherelationshipbetweentheterritoriesandknowledgeand5)strengtheningoftraditionalandancestralpracticesofgovernance.

WhatisyouroverallviewoftheFLOKprocessandwhatareyourexpectationsforthefuture?

FLOKisapioneerproject,asthisisthefirsttimeinhistorythataseriesofpolicydocumentswasproducedinacollaborativewaytopropose,atanationallevel,atransitiontoaneweconomicandsocietalmodelbasedonopenandsharedknowledge,onthecommons,ontraditionalandancestralpracticesandonpeer-to-peerproduction.Producingthesedocumentsinsuchashorttime(8months)wasabigchallenge.Theworkrepresentsanintegratedview,framedwithintheEcuadorianlegalsystem,andresultedfromanintensecollaborativeprocessthatinvolvedmeetingswithEcuadorianexpertsfromcivilsociety,academia,governmentandconstantexchangewithinternationalexpertsineacharea.

IseethisfirstFLOKexperiencebothasaseedthathasbeenplanted,aswellasathresholdthathasbeencrossed:afirstattempttoprovideanalternativemodeltothecapitalistsystemhasbeenproposed,andthiswork-notonlythedocument,buttheentireprocessthatallowedtheproductionofthedocuments-canbeasourceofinspirationtoanyperson,city,civilsocietycollective,region,andcanbereplicated,modifiedandadaptedaccordingtodifferentcontextsandneeds.Athresholdhasbeencrossedinthesensethatanintegralpropositionhasbeendoneforanentiresociety.

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Needlesstosay,itwasaveryrewardingexperiencetobepartoftheproject.

Forthefuture,Iexpectthecommons-transitionmovementtogrowandtostrengthen.Andthatdifferentinitiatives,withdifferentflavors,willstarttosprout.Inthepastyear,manypeopleshowedalotofinterestintheFLOKprocess-notonlyduringthetimewewereinEcuador,butafterwardsaswell.Theworldneedsprofoundchanges;thisisnolongeranoption,butanecessity.Thehumanbeingisintrinsicallygenerousandsolidary-everyculturehassolidaritypracticesthatbecamemoreandmorelostwiththeindividualisticandcompetitivebehaviormodeledbycapitalism.Acommons-transitionmovementisarealpossibilitytorescuehumancooperationandsolidarityandapathtoreachharmonywithNature.

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Index

CommonsTransition:PolicyProposalsforanOpenKnowledgeCommonsSociety

2

PrefacetotheFirstEdition 5IntroductiontotheCommonsTransitionPlan 7ACommonsTransitionPlan 13BackgroundtotheCommonsTransitionProject 14TheFramingoftheProposal 17TheThreeValueModelsandthetransitiontoaSocialKnowledgeEconomy

17

FourTechnologyRegimes 26Cognitive/NetarchicalCapitalismvs.anOpen-CommonsbasedKnowledgeSociety

30

Thepotentialroleofcommons-basedreciprocitylicensestoprotecttraditionalknowledge

48

IntroducingthenewconfigurationbetweenState,CivilSocietyandtheMarket

51

AdescriptionofthenewtriarchyofthePartnerState,theEthicalEconomyandaCommons-basedCivilSociety

57

Beyondthemarket,beyondplanning? 69Thehistoricalandpresentimportanceofmutualizationintimesofincreasingresourcescarcity

76

Ahistoricalopportunity:TheConvergenceofMaterial/TechnicalP2PInfrastructures,Digital/ImmaterialCommons,andCommons-OrientedGovernanceandOwnershipModels

80

ElementsofIdealizedandIntegrativeFullTransitionPlantoamatureSocialKnowledgeEconomy

83

Politicalreconstructionofsocialmovementsinaconjunctureofpost-industrialtransformation

89

References 92Remarks 94Acknowledgements 96

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PublicPolicyforaSocialEconomy 97TheCaseofEcuador 98TowardaNewParadigm–BeyondtheWelfareState 101TheSocialEconomyandtheSocialMarket 103ANewApproach 105Taxation,CapitalFormation,andSocialBenefit 106CaseStudy–FureaiKippu,Japan 108TheSocialMarketExchange 112PublicPolicyforaPartnerState 118ThePartnerState14 119SocialEconomyandtheState 1211.DemocratizationandCo-constructionofPublicGoodsandServices

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2.GuaranteeofMinimumEconomicIndependence 1293.DemocratizationoftheEconomyandRestructuringtheProductiveMatrix

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4.SecuringtheCommons 140ConcludingRemarks 155

Buildingasocialknowledgeeconomythroughtheopendesigncommonsanddistributedmanufacturing1

164

Introduction:theconceptandformsoftheknowledgeeconomy

165

Acritiqueofcognitivecapitalism 166Alternativestocapitalistmodels 170Knowledgecommonsinthesecondarysectoroftheeconomy 172GeneralPrinciplesforPolicyMaking 179ThePolicySetting 181PolicyRecommendations 182References 185

FromBuenVivirtoCommonsTransition:AnInterviewwithJaniceFigueiredo

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