social economy

As befits our time of converging existential crises, a number of new anthologies of essays are popping up to make sense of how modern industrial society got here and to propose coherent strategies for moving forward. Today I’d like to call attention to a fantastic collection of 29 original essays, The New Systems Reader: Alternatives to a Failed Economy, edited by James Gustave Speth and Kathleen Courrier and published by Routledge. 

This 480-page book is a cornucopia of fresh, original thinking by leading thinkers and activists such as Gar Alperovitz, Tim Jackson, Michael Shuman, Ed Whitfield, Riane Eisler, David Korten, Richard D. Wolff, Kali Akuno, Aaron Tanaka, and J.K. Gibson-Graham. 

Chapters cover a wide gamut of topics: social democracy and radical localism, the elements of a new, green economy, worker democracy, the Solidarity economy, cooperatives, participatory economics, reparative economics, and much more. (I have my own chapter on commoning as a transformative social paradigm.)

The Next System Project is an initiative of the Democracy Collaborative, which has long been showcasing the best research and strategic thinking about "visions, models and pathways that point to a 'next system' radically different in fundamental ways from the failed systems of the past and present...." So it's a pleasure to have so many diverse voices consolidated into a single volume.

Tomorrow’s election in Greece could be a significant turning point in the fight against neoliberal austerity politics and an opportunity to inaugurate commons-based alternatives – from peer production to co-operatives to social economy innovations – with the support of the state. Needless to say, it is a complicated situation, not just the political and cultural dynamics within Greece, but the ambition of stepping off in new directions beyond those sanctioned by the European and global financial establishment. 

Fortunately, John Restakis provides some excellent and subtle insight into the Greek situation in a recent blog post on the Commons Transition website (which is worth visiting in its own right!).  John is past Executive Director of the BC Co-operative Association in Vancouver and  has spent many years in community organizing, adult and popular education, and co-op development.  He also lectures widely on the subject of globalization, regional development and alternative economics.

John’s piece is worth reading not just for its assessment of the Greek crisis, but also for the larger challenge of moving commons-based peer production and social alternatives into the mainstream.

Civil Power and the Path Forward for Greece

By John Restakis

With the prospect of a Syriza government, everyone is wondering what the future holds for Greece.  Whether disaster or deliverance, or just the normal chaos, it is hard to ignore the potential for game-changing repercussions from a Syriza government. On the street however, embittered by the failures of governments in the past to change a corrupt and dysfunctional political system, few people are expecting big things from Syriza. The feeling of popular cynicism and fatalism is palpable. How different will Syriza be?

One thing is certain. If Syriza does what it says, it will be forging a courageous and desperately needed path in Europe, not only in opposition to the austerity policies that are devastating the country, but to the neoliberal ideas, institutions, and capital interests that are their source and sustenance. For such a path to succeed, an entirely different view of economic development, of the role of the market, and of the relation between state and citizen is necessary.

It is in this context that the social economy has become an important aspect of Syriza’s plans for re-making the economy. Like other parties of both the right and left in Europe, Syriza is taking cognizance of the role that the social economy can play in the current crisis. Even the Cameron government in the UK, the epicenter of European neo-liberalism, has promoted the social economy as a sector with a strategic role to play in job creation, in improving public services, and in reforming the role of government. In the last election, Mutualism and the Big Society were its slogans.

It all sounds very nice, until it becomes evident just how little right wing governments understand, or care about, what the social economy is and how it functions. For the Cameron government co-operatives, and the social economy more generally, became a cover and a means for public sector privatizations, for weakening job security, and for reducing the role of government. Thousands of public sector workers have been coerced into joining pseudo-co-operatives to save their jobs. Under the current government, the same is beginning to happen in Greece with the newly formed KOINSEPs. This is a travesty of the nature and purpose of co-operatives whose memberships must always be voluntary, whose governance is democratic, and whose purpose is to serve their members and their communities for their common benefit – not the ideological aims of government. It’s a lesson that few governments understand.

For the right, the social economy is often viewed as a final refuge for the discarded of society and the victims of the capitalist economy. It is one reason why the right advocates charity as the proper response for the poor. Never solidarity or equity. More recently, the rhetoric and principles of the social economy have been used to expand the reach of capital into civil spaces. For these reasons co-operatives and social economy organizations in the UK, and elsewhere, have condemned the distortion of social economy principles for vested political interests. But what are these principles?