Posts Tagged ‘Gift Economy’

An Argument for a Mixed Economy Supporting Welfare Services from Martian SF

November 6, 2018

Yesterday I blogged about a passage in Kim Stanley Robinson’s Blue Mars, in which one of the future colonists of the Red Planet at a constitutional congress advocates the transformation of businesses into worker owned co-operatives against a supporter of free enterprise capitalism. The Martians have also been supplementing standard capitalist economics with a gift economy similar to that used by some indigenous cultures today. One of the other delegates at the congress objects to part of the character’s proposals on the grounds that they would be moving away from this part of their economy as well. Vlad Taneev, the character advocating the co-operatives, responds thus.

Vlad shook his head impatiently. ‘I believe in the underground economy, I assure you, but it has always been a mixed economy. Pure gift exchange co-existed with a monetary exchange, in which neoclassical market rationality, that is to say the profit mechanism, was bracketed and contained by society to direct it to serve higher values, such as justice and freedom. Economic rationality is simply not the highest value. It is a tool to calculate costs and benefits, only one part of large equation concerning human welfare. The larger equation is called a mixed economy, and that is what we are constructing here. We are proposing a complex system, with public and private spheres of economic activity. It may be that we ask people to give, throughout their lives, about a year of their work to the public good, as in Switzerland’s national service. That labour pool, plus taxes on private co-ops for use of the land and its resources, will enable us to guarantee the so-called social rights we have been discussing – housing, health care, food, education – things that should not be at the mercy of market rationality. Because la salute no si paga, as the Italian workers used to say. Health is not for sale!’ (p. 149).

To the objection that this will leave nothing to the market, Vlad replies

‘No no no,’ Vlad said, waving at Antar more irritably than ever. ‘The market will always exist. It is the mechanism by which things and services are exchanged. Competition to provide the best product at the best price, this is inevitable and healthy. But on Mars it will be directed by society in a more active way. There will be not-for-profit status to vital life support matters, and then the freest part of the market will be directed away from the basics of existence towards non-essentials, where venture enterprises can be undertaken by worker-owned co-ops, who will be free to try what they like. When the basics are secured and when the workers own their own businesses, why not? It is the process of creation we are talking about.’ (pp. 149-50).

A few paragraphs later the character also urges the creation of strong environmental courts, perhaps as part of the constitutional court, which would estimate the costs to the environment of economic activities, and help to co-ordinate plans impacting the environment. This is based on a clause in the Dorsa Brevia document, the initial constitutional agreement on which the Martians draw in their attempts to formulate a full constitution. This clause states that the land, air and water of Mars belong to no-one, and they are merely its stewards for later generations. (p. 150).

As I said in my previous piece about the fictional economics of this future Mars, it’s refreshing to see an SF writer proposing a form of socialist economics, when so many other SF writers advocated those of libertarian capitalism, like Robert A. Heinlein.

Jeremy Corbyn hasn’t promised complete industrial democracy, but he does intend to give a measure of it to workers in firms with over a certain number of employees, as well as restoring union and other workers’ rights.

As for combining competition with socialism, the 19th century socialist, Louis Blanc, who believed that the state should combat unemployment by setting up state-funded worker’s co-ops, which would then use their profits to buy up the rest of industry, said that it was like combining eunuchs with hermaphrodites. But as it is set out here, it could work.

And we definitely need for housing and health care to be taken out of free market economics. The sale of council houses to private landlords and management corporations, and the Tories’ ban on any more being built, has contributed immensely to the homelessness crisis now afflicting Britain. For all that the building companies are supposed to build a certain number of ‘affordable housing’, in very many cases the majority of homes built are for the top end of the market with only the minimum number of homes for people on modest incomes being built.

And the privatization of the health service has created a massive crisis in healthcare in this country. And it is done with the deliberate, but very carefully unstated intention of forcing people to take out private healthcare insurance as part of the process towards full privatization.

It’s time this was halted, utterly and forever. And only Corbyn can be trusted to do this, as New Labour were as keen on the idea as the Tories.

And the Italian workers’ slogan is excellent: La salute non si paga – ‘Health is not for sale’. This should be our slogan too, printed on leaflets, on placards and T-Shirts and made very clear, every time we protest against the Tories and their privatization of modern Britain’s greatest achievement.


An Argument for Industrial Democracy from the Mars of SF

November 5, 2018

I’m currently reading Blue Mars, the last of a trilogy of books about the future colonization of the Red Planet by Kim Stanley Robinson. Written in the 1990s, this book and the other two in the series, Red Mars and Green Mars, chronicle the history of humans on Mars from the landing of the First 100 c. 2020, through full-scale colonization and the development of Martian society to the new Martians’ struggle for independence from Earth. In this future, Earth is run by the metanats, a contraction of ‘metanational’. These are the ultimate development of multinational corporations, firms so powerful that they dominate and control whole nations, and are the real power behind the United Nations, which in theory rules Mars.

As the Martians fight off Terran rule, they also fight among themselves. The two main factions are the Reds and the Greens. The Reds are those, who wish to preserve Mars in as close to its pristine, un-terraformed condition as possible. The Greens are those on the other side, who wish to terraform and bring life to the planet. The Martians are also faced with the question about what type of society and economy they wish to create themselves. This question is a part of the other books in the series. One of the characters, Arkady Bogdanov, a Russian radical, is named after a real Russian revolutionary. As it develops, the economy of the free Martians is partly based on gift exchange, rather like the economies of some indigenous societies on Earth. And at a meeting held in the underground chamber of one of the Martian societies – there are a variety of different cultures and societies, reflecting the culture of various ethnic immigrant to Mars and the political orientation of different factions – the free Martians in the second book draw up their tentative plans for the new society they want to create. This includes the socialization of industry.

Near the beginning of Blue Mars, the Martians have chased the Terran forces off the planet, but they remain in control of the asteroid Clarke, the terminus for the space elevator allowing easier space transport between Earth and Mars. The Martians themselves are dangerously divided, and so to begin the unification of their forces against possible invasion, they hold a constitutional congress. In one of the numerous discussions and meetings, the issue of the socialization of industry is revisited. One member, Antar, is firmly against government interference in the economy. He is opposed by Vlad Taneev, a biologist and economist, who argues not just for socialization but for worker’s control.

‘Do you believe in democracy and self-rule as the fundamental values that government ought to encourage?’
‘Yes!’ Antar repeated, looking more and more annoyed.
‘Very well. If democracy and self-rule are the fundamentals, then why should people give up these rights when they enter their work place? In politics we fight like tigers for freedom of movement, choice of residence, choice of what work to pursue – control of our lives, in short. And then we wake up in the morning and go to work, and all those rights disappear. We no longer insist on them. And so for most of the day we return to feudalism. That is what capitalism is – a version of feudalism in which capital replaces land, and business leaders replace kings. But the hierarchy remains. And so we still hand over our lives’ labour, under duress, to fee rulers who do no real work.’
‘Business leaders work,’ Antar said sharply. ‘And they take the financial risks-‘
‘The so-called risk of the capitalist is merely one of the
privileges of capital.’
‘Management -‘
‘Yes, yes. Don’t interrupt me. Management is a real thing, a technical matter. But it can be controlled by labour just as well by capital. Capital itself is simply the useful residue of the work of past labourers, and it could belong to everyone as well as to a few. There is no reason why a tiny nobility should own the capital, and everyone else therefore be in service to them. There is no reason they should give us a living wage and take all the rest that we produce. No! The system called capitalist democracy was not really democratic at all. That’s why it was able to turn so quickly into the metanational system, in which democracy grew ever weaker and capitalism every stronger. In which one per cent of the population owned half of the wealth, and five per cent of the population owned ninety-five per cent of the wealth. History has shown which values were real in that system. And the sad thing is that the injustice and suffering caused by it were not at all necessary, in that the technical means have existed since the eighteenth century to provide the basics of life to all.
‘So. We must change. It is time. If self-rule is a fundamental value. If simple justice is a value, then they are values everywhere, including in the work place where we spend so much of our lives. That was what was said in point four of the Dorsa Brevia agreement. It says everyone’s work is their own, and the worth of it cannot be taken away. It says that the various modes of production belong to those who created them, and to the common good of the future generations. It says that the world is something we steward together. That is what it says. And in our years on Mars, we have developed an economic system that can keep all those promises. That has been our work these last fifty years. In the system we have developed, all economic enterprises are to be small co-operatives, owned by their workers and by no one else. They hire their management, or manage themselves. Industry guilds and co-op associations will form the larger structures necessary to regulate trade and the market, share capital, and create credit.’
Antar said scornfully, ‘These are nothing but ideas. It is utopianism and nothing more.’
‘Not at all.’ Again Vlad waved him away. ‘The system is based on models from Terran history, and its various parts have all been tested on both worlds, and have succeeded very well. You don’t know about this partly because you are ignorant, and partly because metanationalism itself steadfastly ignored and denied all alternatives to it. But most of our micro-economy has been in successful operation for centuries in the Mondragon region of Spain. the different parts of the macro-economy have been used in the pseudo-metanat Praxis, in Switzerland, in India’s state of Kerala, in Bhutan, in Bologna, Italy, and in many other places, including the Martian underground itself. These organization were the precursors to our economy, which will be democratic in a way capitalism never even tried to be.
(pp. 146-8).

It’s refreshing to see a Science Fiction character advocate a left-wing economics. Many SF writers, like Robert A. Heinlein, were right-wing. Heinlein’s The Moon Is A Harsh Mistress, about a rebellion on the Moon, contains several discussion in which Heinlein talks about TANSTAAFL – his acronym for There Ain’t No Such Thing As a Free Lunch.

Praxis is the fictional metanational corporation, which supplies aid to the colonists against the rest of the terrestrial super-corporations. I don’t know about the references to Switzerland, Kerala, Bhutan or Bologna, but the Mondragon co-operatives in Spain certainly exist, and are a significant part of the country’s economy. They were set up by a Spanish priest during Franco’s dictatorship, but managed to escape being closed down as he didn’t recognize such enterprises as socialist.

I don’t know how practical it would be to make all businesses co-operatives, as there are problems of scale. Roughly, the bigger an enterprise is, the more difficult proper industrial democracy becomes. But co-operatives can take over and transform ailing firms, as was shown in Argentina during the last depression there a few years ago, when many factories that were about to be closed were handed over to their workers instead. They managed to turn many of them around so that they started making a profit once again. Since then, most of them have been handed back to their management, however.

But the arguments the Vlad character makes about democracy being a fundamental value that needs to be incorporated into industry is one of that the advocates of industrial democracy and workers’ control, like the Guild Socialists, made. And we do need to give workers far more power in the work place. Jeremy Corbyn has promised this with his pledge to restore workers’ and union rights, and make a third of the directors on corporate boards over a certain size elected by the workers.

If Corbyn’s plans for industrial democracy in Britain become a reality, perhaps Britain really will have a proper economic system for the 21st century, rather than the Tories and Libertarians trying to drag us back to the unfettered capitalism of the 19th.