Category Archives: UK

Building a New Economy Through Platform Co-operatives

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Can diverse social movements come together and find new synergies for building a new type of economy?  Last week there were some significant conversations along those lines at Goldsmiths College in London, at the Open Co-op conference. The two-day event brought together leading voices from the co-operative, open source, and collaborative economy movements as well as organized labor. The gathering featured a lot of experts on co-operative development, law, software platforms, economics and community activism.

The basic point of the conference was to:  

“imagine a transparent, democratic and decentralised economy which works for everyone. A society in which anyone can become a co-owner of the organisations on which they, their family & their community depend. A world where everyone can participate in all the decisions that affect them.

“This is not a utopian ideal, it is the natural outcome of a networked society made up of platform cooperatives; online organisations owned and managed by their members. By providing a viable alternative to the standard internet business model based on monopoly and extraction, platform cooperatives provide a template for a new type of organisation – forming the building blocks for a new economy.”

The idea of “platform co-operatives” – launched at a seminal New York City conference in November 2015 co-organized by Trebor Scholz and Nathan Schneider – has quickly found a following internationally. People have begun to realize how Uber, Airbnb, Taskrabbit and countless other network platforms are distressingly predatory, using venture capital money and algorithms to override health, safety and labor standards and municipal governance itself.

The London event showed the breadth and depth of interest in this topic – and in the vision of creating a new type of global economy.  There were folks like Felix Weth, founder of Fairmondo, a German online marketplace and web-based co-op owned by its users; Brianna Werttlaufer, cofounder and CEO of Stocksy United, an artist-owned, multistakeholder cooperative in Victoria, British Colombia; and co-operative finance and currency expert Pat Conaty.

There was a lot of talk about building new infrastructures that could mutualize the benefits from local businesses while connecting to a larger global network of co-ops sharing the same values.  Among the tools mentioned for achieving this goal: Mondragon-style co-ops, government procurement policies to favor local co-ops, shifting deposits to local credit unions, and crowdfunding citizen-led community development projects.

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STIR Magazine Explores the Solidarity Economy

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A very meaty issue of the British magazine STIR looks at a wide variety of projects based on Solidarity Economics.  Produced in collaboration with the Institute for Solidarity Economics at Oxford, England, the Winter 2017 issue explores everything from municipal energy in London to cooperatively owned digital platforms, and from childcare coops to the robust solidarity economies being built in Catalan and Rojava.  What’s striking about many of the articles is the fresh experimentation in new cooperative forms now underway.

Consider the Dutch organization BroodFondsMakers, based in Utrecht, an insurance-like system for self-employed individuals.  When a public insurance program was abolished by the government in 2004, a small group of self-employed individuals got together to create their own insurance pool.  More than a commercial scheme, members of the groups meet a few times a year, and even have outings and parties, in order to develop a certain intimacy and social cohesion.

When someone in a group gets sick for more than a month, they receive donations from the group, which usually have between 20 and 50 members. The mutual support is more than a cash payment, it is a form of emotional and social support as well. BroodFonds now has more than 200 groups and about 10,000 members participating in its system.

Another STIR article describes a new prototype for childcare in England that aims to overcome the well-known problems of high cost, low quality and poor availability of childcare.  The new cooperative model, Kidoop, is meant to be co-produced by parents and playworkers, and not just a market transaction. The model, still being implemented, aims to provide greater flexibility, better quality care and working conditions, lower costs, and a system that parents actually want.

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Inspiring New Film, “Voices of Transition,” on the Agriculture That We Need

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How will agriculture have to change if we are going to successfully navigate past Peak Oil and address climate change?  A new film documentary, Voices of Transition, provides plenty of answers from Transition-oriented farmers in France, Great Britain and Cuba.    

Produced and directed by French/German filmmaker Nils Aguilar, the 65-minute film is “a completely independent, participative film project” that both critiques the problems of globalized industrial agriculture and showcases localized, eco-friendly alternatives. The film features actual farmers showing us their farms and describing the human-scale, eco-friendly, community-based alternatives that they are developing. 

You can watch a trailer of the movie in English, German and French here and read a synopsis here. Go to the film’s website to check out the public screenings and DVD versions that you can buy.  Here is a link to the campaign around the international launch of the film.

Farmer Jean-Pierre Berlan explains the problem with contemporary agriculture:  “Our society is organized in such a way that everything is turned into a commodity. How can such a society develop farming methods that are free of cost? Agronomy should be looking for better methods, but our current farming policy is opposed to that.”   

Once processing and transport are taken into account, industrial agriculture is responsible for around 40% of greenhouse gas emissions, the film explains. To produce on single calorie of food, ten to twenty times that amount of energy are needed.  Almost all government subsidies and R&D budgets are focused on this unsustainable agricultural model – and worse, most of these subsides go to the biggest, most polluting farms.

The results: Heavy chemical use literally kills valuable organisms in the soil, causing a cascade of ecological disruptions. The use of monoculture crops over vast areas of land means that wildlife and biodiversity are declining. And the centralized distribution of food makes the entire system highly vulnerable to the costs of oil and potential disruptions of supply. If trucks were to stop arriving at supermarkets, they would empty within three days.

A French farmer is reintroducing soil-enriching plants in fields, and even trees in fields, because a tree's leaves and roots enrich the soil with organic matter and aerate the soil, allowing living organisms to breathe.”  This kind of “ecological agronomy” helps maintain soil fertility and prevent soil depletion.

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Co-ops and Commons: Exciting Convergences in the UK

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New Start magazine, a British magazine associated with the Manchester-based Centre for Local Economic Strategies, has just come out with a terrific issue (#525, October 2014) about co-operatives and commons.  The essays focus on how “more democratic forms of ownership – of land, housing, workplaces and the public realm – can revive our places.” 

While most of the essays deal with British co-ops and commons, the lessons and strategies mentioned have a relevance to many other places. Consider land ownership, a topic that is rarely a part of progressive political agendas.  Steve Bendle, director of a group called Community Land and Finance, offers a clear-eyed assessment of how government is obsessed with enhancing the value of land for landowners and developers – while largely ignoring how land could be used to serve citizens, taxpayers and the wider community. 

Unneeded land and government buildings, for example, are generally put up for sale on the market rather than used to serve the needs of a community for housing, work spaces or civic infrastructure.  The assumption is that privatized, market-driven uses of the assets will yield the greatest “value” (narrowly defined as return on investment to private investors). 

When government (i.e., taxpayers) finances new roads, subways or rail systems, the market value at key locations and buildings invariably rises.  But government rarely does much to capture this value for the public. 

Bendle concludes:  “So developers and landowners make profits, while the public sector struggles to secure a contribution to infrastructure costs or to deliver affordable homes despite successive attempts to change the planning system.”

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The Great Promise of Social Co-operatives

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The austerity agenda is often presented as inevitable, which is really just a way for corporatists and conservatives to dismiss any discussion or debate. “There are no alternatives!” they thunder.  But as Co-operatives UK demonstrates in a brilliant new report, there are a growing array of highly practical alternatives that are both financially feasible and socially effective. They are known as multi-stakeholder co-operatives, or more simply as “social co-operatives.” 

While most of us are familiar with consumer or worker coops, the social co-operative is a bit different.  First, it welcomes many types of members – from paid staff and volunteers to service users and family members to social economy investors.  While many coops look and feel like their market brethren, with a keen focus on profit and loss, social coops are committed to meeting social goals such as healthcare, eldercare, social services and workforce integration for former prisoners. They are able to blend market activity with social services provisioning and democratic participation, all in one swoop.

Pat Conaty is author of the report, “Social Co-operatives:  A Democratic Co-Production Agenda for Care Services in the UK.”   He explains how the legal and organizational structures of multi-stakeholder co-operatives – as well as their cultural ethos – generate all sorts of advantages.  They can deliver services more efficiently than many conventional businesses.  They are more adaptable and responsive than many government programs.  And they invite active, inclusive participation by members in deciding how their needs shall be met -- and in contributing their own knowledge and energies.

The report examines best practices in co-operative health and social care services, and profiles the success of social coops in Italy, Japan, France and Spain, among other countries, as well as in Quebec, Canada. 

The Italian experience with social coops is especially impressive.  Since passage of a 1991 law that authorizes social co-operatives and provides public policy support for them, Italians have started 14,500 social co-operatives that employ 360,000 paid workers and rely on an additional 34,000 volunteer members.  The typical coop has fewer than 30 worker-members, and provides services to the elderly, the disabled and those with mental illnesses.  Some provide “sheltered employment” for people with disabilities and other vulnerable groups.

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Derek Wall’s “The Commons in History”

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For many people, the commons exists as some sort of Platonic ideal -- a fixed, universal archetype.  That’s silly, of course, because commons are so embedded in a given place and moment of history and culture, and therefore highly variable.  Derek Wall takes this as a point of departure in his new book, The Commons in History:  Culture, Conflict and Ecology (MIT Press).  At 136 pages of text, it is a short and highly readable book, but one that conveys much of the texture of commons and enclosures as paradigms -- and the implications for ecosystems.

Wall is an economist at Goldsmith College, University of London, so he knows a few things about the biases of conventional economics.  He is also a member of the Green party of England and Wales, and therefore knows a few things about corporate power and oppositional politics. 

As the author of a recent intellectual biography, The Sustainable Economics of Elinor Ostrom (Routledge), Wall has a subtle mastery of Ostrom’s approach to the commons, but he is not afraid to wade into the political aspects of commons.  He notes, for example, “most commons have not been found to succeed or fail on the basis of their own merits.  Instead, they have been enclosed, and access has been restricted and often turned over to purely private ownership or state control.”  He adds that “commons is a concept that is both contests and innately political in nature.  Power and access to resources remain essential areas for debate.”

It is entirely appropriate, then, that Wall goes beyond the familiar Hardin-Ostrom debate on the rationality and economic value of commons, to explore what he calls “the radical case for the commons,” as outlined by E.P. Thompson and Christopher Hill, among others.  While Marxist criticisms of the environmental effects of capitalism so often hit the mark, Wall points out that “the commons is not utopia.  A common-pool property rights do not guarantee a free and equal society.”  

That’s partly because a commons is not a unitary model, but only a template with highly variable outcomes.  People may have common rights to use “usufruct rights” on privately owned land, for example, authorizing them to gather fallen wood.  This can be considered a type of commons, albeit not one as self-sovereign and robust as those with communally owned and controlled land.  Commons may also coexist with hierarchical power relationships – a reality that also militates against a radical equality.

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Walking Paths as Commons

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Jonny Gordon-Farleigh of STIR magazine shared with me an arresting little snippet of history that speaks eloquently about the quiet role of social reciprocity in a civilized life.  Consider walking paths as commons, as described by Robert Macfalance in his book, The Old Ways:  A Walking Journey:

“Paths are consensual, too, because without common care and common practice they disappear....In nineteenth-century Suffolk [UK] small sickles called 'hooks' were hung on stiles and posts at the start of certain well-used paths: those running between villages, for instance, or byways to parish churches. A walker would pick up a hook and use it to lop off branches that were starting to impede passage. The hook would then be left at the other end of the path, for a walker coming in the opposite direction. In this manner the path was collectively maintained for general use.”

It seems to be that we need more modern-day “hooks” that invite people to participate in anonymous acts of self-directed enterprise and reciprocal generosity.  Sounds like a great alternative, when feasible, to the connivances of large markets and remote, centralized bureaucracies.

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Reflecting on the Recent History of the Commons

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It’s clear that commoners will not only have to make history themselves, outside of ordinary channels, but to write and preserve that history as well.  My colleagues Silke Helfrich and Michel Bauwens are off to a great start.  Independently, they’ve prepared two useful syntheses of some of the more significant recent developments in the commons and P2P worlds.

Silke prepared a timeline that identifies landmarks in the commons movement from the past several years.  The piece just appeared in the Winter 2014 issue of STIR magazine (about which I will have more to say below).  The timeline is on Silke’s blog as well.  Among the highlights: 

The rise of Remix the Commons (2010 – present), an evolving multimedia project about the key ideas and practices of the commons.

The Atmospheric Trust Litigation (2011 – present), which is filing lawsuits under the public trust doctrine to force state governments and the U.S. Government to protect the atmosphere as common property.

The world’s first Open Knowledge Festival in Finland, a week’s events in September 2012, in Helsinki, Finland.  (The next Open Knowledge Festival will be in Berlin in July 2014.)

The Constitutional Assembly of the Commons held with 700 participants at the occupied Teatro Valley, a revered opera house in Rome, in April 2013.

The timeline also has some great illustrations by Hey Monkey Riot.

Meanwhile, Michel Bauwens posted the “Most Important P2P-Related Projects and Trends in 2013.”  He cautions that “most important” “does not mean any blanket endorsement, nor ‘best.’  It just means that it is an important project.”  

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Co-operative Place Making through Community Land Trusts

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A fascinating new report just published by Co-operatives UK describes the huge potential of community land trusts and other forms of mutual housing and enterprise. Commons Sense:  Co-operative place making and the capturing of land value for 21st century Garden Cities brings together a wealth of insight into the practical solutions that community land trusts (CLTs) can provide. 

By converting land into commonwealth – capturing escalating land values for everyone’s benefit – it is possible to make housing more affordable and to finance all sorts of infrastructure and services that make communities more stable, attractive and thriving.  What’s not to like?  (Well, if you’re a bank, private landowner or speculator, you may not like the competition of a superior financial model.)

The Commons Sense report, edited by Pat Conaty of Cooperatives UK and Martin Large of Stroud Common Wealth, succinctly describes the basic problem:

The high cost of housing is draining money out of the productive economy, mainly through land and house price inflation, with damaging effects for national and individual household budgets.  Many new homes are unaffordable to ordinary working people, some offer poor value for money in terms of quality or construction, design and energy performance, and cost pressures frequently drive out good design in the spaces between buildings and in the concept of supporting new neighbourhoods.  Many new developments are socially, environmentally and economically obsolete from the moment they are conceived, let alone designed or built.

Conaty and Large note that in Britain, only 0.6% of the population – 36,000 people – own about half of the land.  This is a significant structural reason for soaring housing prices and continuing wealth inequality.

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The Rarely Told Story: Pirates as Radical Commoners

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Kester Brewin, a teacher of mathematics in South East London, was wondering why his son has been invited to countless pirate-themed birthday parties, but not any aggravated robbery themed parties.  What's the reason for our fascination with pirates?

 Brewin’s answer is an amazing 13-minute video talk  for TEDx Exeter (UK) based on his 2012 book, Mutiny! Why We Love Pirates and How they Can Save Us. The talk is a powerful account of 18th century piracy and a plea for all of us to become pirates as acts of radical emancipation.

For the full effect, I urge you to watch the full video....but here is a key excerpt transcribed from Brewin’s talk:

 

What I want to propose is that whenever we see pirates, we see a system in some kind of trouble, whether it involves politics, economics, spirituality, culture or the arts.  Pirates send us a signal that something that should be held in the hands of common people, has been taken away.

Now if we look back in history, the golden age of pirates, the early 1700s, we see England, Spain, France and Holland trying to enclose the new world of the Americas into their empires.  At this time we are right at the birth of emerging global capitalism.  The engine of this movement is the ship.  And the petrol in the engines are sailors. 

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