peer production

Michel Bauwens recently spoke at the Harvard Berkman Center to give his big-picture analysis of the economic and social transition now underway.  The hour-long video of his talk provides a clear explanation for why peer production is flourishing and out-competing conventional business models and markets.  It’s all part of an epochal shift in how value is created, argues Bauwens.

Citing major transitions of the past – from nomadic communities to clans; from clans to class-based, pre-capitalist societies; from pre-capitalism to capitalism – Bauwens said, “We’re in a period of history in which a marginal system of value is moving to the center of value-creation.” 

For those who don't have an hour to watch the video, below, a review of Michel's key points: 

Unlike traditional leftist visions of revolution, which require a social movement to seize state power and then install another system, the emerging world of peer production is based on another vision:  build an alternative economy outside the circuits of capitalism, or at least insulated from its exploitation, and then develop its own functionalities and moral authority. 

The point is not so much to displace or smash capitalism, he said, as to make the commons the new, more compelling “attractor” for activities that create value.  Rather than try to use private labor to produce value, which is then captured by privately owned corporations and sold in markets based on artificially created scarcity, the peer production economy proposes a new model:  abundance based on an ethic of sufficiency.

Instead of allocating surplus value through the market or hierarchical systems, the peer production economy creates value through open, voluntary contributions and “massive mutual coordination,” said Bauwens.  The goal is to create commons through social systems and the sharing of resources.

Congratulations to my colleagues at the Peer to Peer Foundation, and especially founder Michel Bauwens, for winning the 2016 Golden Nica for Digital Communities from Prix Arts Electronica!  This is a great and well-deserved honor.  There were a total of 3,159 entries from 84 countries for this venerable prize this year. 

In the prize citation, the jury wrote: 

“The P2P Foundation is a new generation of communities that help to build communities.  It is dedicated to advocacy and research of peer to peer dynamics in society. Established ten years ago, it evolved into one of the main drivers of the ‘commons transition’.

“As a decentralized and self-organized non-profit organization, the P2P Foundation analyzes, documents and promotes peer-to-peer strategies that seem to be well-suited to facing the challenges and problems of our times in ways that display great future promise. The focus is on three key traits: sustainability, openness and solidarity. Since its inception, the community of the P2P Foundation has input over 30,000 entries that document the history and development of the peer-to-peer movement. The P2P Foundation Wiki has been accessed more than 27 million times, and is thus the platform that has assembled the world’s most massive collection of knowledge about P2P.”

A shout-out to the P2P Foundation core team, consisting of James Burke, Bill Niaros, Vasilis Kostakis, Ann Marie Utratel and Stacco Troncoso, and of course, Michel – my dear friend and colleague on the Commons Strategies Group.  Michel, it is so heartening to see your years of toil, tenacity and leadership in building this global community receive this recognition.

Universitat de Oberta Catalunya -- Open University of Catalonia -- just published the following essay of mine as part of its "Open Thoughts" series.  The UOC blog explores the benefits and limitations of various forms of peer production: well worth a look!

From open access platforms to managed digital commons: that is one of the chief challenges that network-based peer production must meet if we are going to unleash the enormous value that distributed, autonomous production can create.

The open platform delusion
We are accustomed to regarding open platforms as synonymous with greater freedom and innovation. But as we have seen with the rise of Google, Facebook and other tech giants, open platforms that are dominated by large corporations are only “free” within the boundaries of market norms and the given business models. Yes, open platforms provide many valuable services at no (monetary) cost to users. But when some good or service is offered for at no cost, it really means that the user is the product. In this case, our personal data, attention, social attitudes lifestyle behavior, and even our digital identities, are the commodity that platform owners are seeking to “own.”

In this sense, many open platforms are not so benign. Many of them are techno-economic fortresses, bolstered by the structural dynamics of the “power law,” which enable dominant corporate players to monopolize and monetize a given sector of online activity. Market power based on such platforms can then be used to carry out surveillance of users’ lives; erect barriers to open interoperability and sharing, sometimes in anticompetitive ways; and quietly manipulate the content and “experience” that users may have on such platforms.

Such outcomes on “open platforms” should not be entirely surprising; they represent the familiar quest of capitalist markets to engineer the acquisition of exclusive assets and monetize them. The quarry in this case is our consciousness, creativity and culture. The more forward-looking segments of capital realize that “owning a platform” (with stipulated terms of participation) can be far more lucrative than owning exclusive intellectual property rights for content.

So for those of us who care about freedom in an elemental human and civic sense — beyond the narrow mercantilist “freedoms” offered by capitalist markets — the critical question is how to preserve certain inalienable human freedoms and shared cultural spaces. Can our free speech, freedom of association and freedom to interconnect with each other and innovate flourish if the dominant network venues must first satisfy the demands of investors, corporate boards and market metrics?

For the Uncommons conference in Berlin on October 23, Michel Bauwens recently distilled his years of thinking about digital collaboration into a short text, “Ten Commandments of Peer Production and Commons Economics.”  The document describes the key pillars of “a mode of production and value creation that is free, fair and sustainable.”  I am reproducing his entire text here because I think it is so succinct and seminal.

As we have tried to show elsewhere, the emergence of Commons-Oriented Peer Production has generated the emergence of a new logic of collaboration between open productive communities who created shared resources (commons) through contributions, and those market-oriented entities that created added value on top or along these shared commons.

This article addresses the emerging practices that should inspire these entities of the 'ethical' economy. The main aim is to create new forms that go beyond the traditional corporate form and its extractive profit-maximizing practices of value extraction. Instead of extractive forms of capital, we need generative forms, that co-create value with and for the commoners.

I am using the form of commandments to explain the new practices. All of them have already emerged in various forms, but need to be generalized and integrated.

What the world and humanity, and all those beings that are affected by our activities require is a mode of production, and relations of production, that are “free, fair and sustainable” at the same time.

OPEN AND FREE

1. Thou shall practice Open Business Models based on shared knowledge

Closed business models are based on artificial scarcity. Though knowledge is a non- or anti-rival good that gains in use value the more it is shared, and though it can be shared easily and at very low marginal cost when it is in digital form, many extractive firms still use artificial scarcity to extract rents from the creation or use of digitized knowledge. Through legal repression or technological sabotage, naturally shareable goods are made artificially scarce, so that extra profits can be generated. This is particularly galling in the context of life-saving or planet-regenerating technological knowledge. The first commandment is therefore the ethical commandment of sharing what can be shared, and only creating market value from resources that are scarce and create added value on top or along these commons. Open business models are market strategies that are based on the recognition of natural abundance and the refusal to generate income and profits by making them artificially scarce.

Thou shall find more information on this here at http://p2pfoundation.net/Category:Business_Models

FAIR

2. Thou shall practice Open Cooperativism

Many new more ethical and generative forms are being created, that have a higher level of harmony with the contributory commons. The key here is to choose post-corporate forms that are able to generate livelihoods for the contributing commoners.

Open cooperatives in particular would be cooperatives that share the following characteristics:

1) they are mission-oriented and have a social goal that is related to the creation of shared resources

2) they are multi-stakeholder governed, and include all those that are affected by or contributing to the particular activity

The latest issue of Boston Review has a lively forum on the growing power of network-based businesses such as Amazon, Uber and Airbnb.  These companies may not be monopolies in the strict conventional sense of the law, but they nonetheless use their market dominance and network platforms to extract all sorts of advantages from competitors, suppliers and consumers. 

K. Sabeel Rahman, a professor at Brooklyn Law School, presented his assessment of the situation, and then nine people of various persuasions (including me) responded.  Rahman stated the problem succinctly:

The kinds of power that Amazon, Comcast and companies such as Airbnb and Uber possess can’t be seen or tackled via conventional antitrust regulations.  These companies are not, strictly speaking, monopolies; Urban and Airbnb, in particular, do not engage in the kind of price-fixing or market dominance that is the usual target of antitrust regulation today.  These companies are better understood as platforms or utilities:  they provide a core, infrastructural service upon which other firms, individuals and social groups depend.

The problem is that conventional antitrust regulation isn’t really equipped to deal with information economy platforms, which tend to connect buyer and sellers in more efficient ways while offering very low prices. What’s the problem with that? Well, the problem is open networks paradoxically result in "power law" outcomes in which a minority of players tend to dominate the universe of users. Some companies have used this network-based advantage to limit competitors' access to the market, impose unfair conditions on consumers or producers, and evade consumer and labor-rights laws. 

Rahman calls for a re-purposing of Progressive era policies from a century ago that tamed large monopolies like railroads by subjecting them to public utility regulation. Is this the way to go? Juliet Schor of Boston College agrees that there is a problem, but considers the regulatory approach nostalgic and unimaginative. She argued: 

“Peer-to-peer structure and peer ownership of capital undermine the argument for private ownership of platforms and, by extension, for the public utility model.  This is not to say there isn’t a strong public interest in this sector – there is.  But the compelling feature of these entities is that most of the value in the market is produced by the peers, not the platforms.  This suggests that platforms can and should be owned and governed by users.  If they are, we can worry less about rent extraction, concentrations of political power, and the other concerns Rahman raises.”

A New Alignment of Movements?

In September 2014, the Commons Strategies Group convened a three-day workshop in Meissen, Germany, of 25 policy advocates and activists from a variety of different economic and social movements.  The topic of the "deep dive":  Can leading alt-economic and social movements find ways to work more closely together?  Can there be a greater convergence and collaboration in fighting the pathologies of neoliberalism? 

The activists hailed from movements devoted to the Social and Solidarity Economy, Degrowth, Co-operatives, Transition Towns, the Sharing and Collaborative Economy, Peer Production, environmental justice, and the commons, among others. While most came from Europe, there were also participants from Canada, the US, Brazil, Ireland and the UK. The workshop was organized by the Commons Strategies Group, which gratefully acknowledges the indispensable support of the Heinrich Böll Foundation (Germany) and the Charles Léopold Mayer Foundation (France and Switzerland).

Before this workshop, roughly a dozen of the same participants had deliberated on the topic of "open co-operativism" a few days earlier at a separate gathering in Berlin. The report synthesizing those conversations, "Toward an Open Co-operativism," were released three weeks ago and can be found here. 

Below, the Introduction to the report, "A New Alignment of Movements?" which synthesizes the salient points of discussion from the Meissen workshop. The 39-page report, by David Bollier and Pat Conaty, can be downloaded as a pdf file here.  

Despite the deepening crisis of neoliberalism in Europe, no clear alternative critiques or philosophical approaches have emerged that could catalyze a united response or new convergence of movements. Indeed, the traditional left has not only not profited politically from the ongoing crisis, but, with a few exceptions, its popularity has actively declined. With the notable exception of the Greece, recent European elections have shown a marked move to the radical right among major segments of the European electorate.

But if the classic political expressions of resistance may be wanting, that does not mean that there have not been positive developments.  Amongst these are the “growth”of the degrowth movement and other ecological/sustainability oriented movements; the emergence of a commons orientation amongst political groups in countries like Italy; the creation of thousands of alternative solidarity mechanisms in Greece and Spain; a revival of co-operativism as an economic and social alternative; ongoing work by the Social and Solidarity Economy movement; and movements ranging from Transition Towns to “shareable cities” to local food.

Interesting political expressions include the massive mobilisations of youth around the 15M “real democracy”platform in Spain, the success of left parties with a transformative agenda such as Syriza in Greece and Podemos in Spain, the emergence of parties expressing digital culture such as the Pirate Parties (in more than two dozen nations), and platform parties calling for direct democracy like the Partido X in Spain. These efforts have been accompanied by many constructive efforts by precariously employed youth to create alternatives for their livelihoods, also expressed in the emergence of the “sharing economy.”

Is it possible to imagine a convergence of movement practice and goals – blending constructive, social and political movements –in ways that advance the idea of “unity in diversity”? Is it possible to imagine the reconstruction of socially progressive majorities at the local, national and European level?

Is it possible to imagine a new sort of synthesis or synergy between the emerging peer production and commons movement on the one hand, and growing, innovative elements of the co-operative and solidarity economy movements on the other? 

That was the animating question behind a two-day workshop, “Toward an Open Co-operativism,” held in August 2014 and now chronicled in a new report by UK co-operative expert Pat Conaty and me.  (Pat is a Fellow of the New Economics Foundation and a Research Associate of Co-operatives UK, and attended the workshop.) 

The workshop was convened because the commons movement and peer production share a great deal with co-operatives....but they also differ in profound ways.  Both share a deep commitment to social cooperation as a constructive social and economic force.  Yet both draw upon very different histories, cultures, identities and aspirations in formulating their visions of the future.  There is great promise in the two movements growing more closely together, but also significant barriers to that occurring.

The workshop explored this topic, as captured by the subtitle of the report:  “A New Social Economy Based on Open Platforms, Co-operative Models and the Commons,” hosted by the Commons Strategies Group in Berlin, Germany, on August 27 and 28, 2014. The workshop was supported by the Heinrich Böll Foundation, with assistance with the Charles Léopold Mayer Foundation of France. 

Below, the Introduction to the report followed by the Contents page. You can download a pdf of the full report (28 pages) here. The entire report is licensed under a Creative Commons Attribution-ShareAlike (BY-SA) 3.0 license, so feel free to re-post it.

As one of the countries hardest hit by austerity politics, Greece is also in the vanguard of experimentation to find ways beyond the crisis.  Now there is a documentary film about the growth of commons-based peer production in Greece, directed by Ilias Marmaras. "Knowledge as a common good: communities of production and sharing in Greece” is a low-budget, high-insight survey of innovative projects such as FabLab Athens, Greek hackerspaces, Frown, an organization that hosts all sorts of maker workshops and presentations, and other projects.

A beta-version website Common Knowledge, devoted to “communities of production and sharing in Greece,” explains the motivation behind the film:

“Greece is going through the sixth year of recession. Austerity policies imposed by IMF, ECB and the Greek political pro-memorandum regimes, foster an unprecedented crisis in economy, social life, politics and culture. In the previous two decades the enforcement of the neoliberal politics to the country resulted in the disintegration of the existed social networks, leaving society unprepared to face the upcoming situation.

During the last years, while large parts of the social fabric have been expelled from the state and private economy, through the social movements which emerge in the middle of the crisis, formations of physical and digital networks have appeared not only in official political and finance circles, but also as grassroots forms of coexistence, solidarity and innovation. People have come together, experimenting in unconventional ways of collaboration and bundling their activities in different physical and digital networks. They seek answers to problems caused by the crisis, but they are also concerned about issues due the new technical composition of the world. In doing so they produce and share knowledge.”

George Papanikolaou of the P2P Foundation in Greece describes how peer production is fundamentally altering labor practices and offering hope:  “For the first time, we are witnessing groups of producers having the chance to meet up outside the traditional frameworks – like that of a corporation, or state organization.  People are taking initiatives to form groups in order to produce goods that belong in the commons sphere.”

It’s hard to find many co-operatives with the kind of practical sophistication and visionary ambitions as CIC – the Catalan Integral Cooperative -- in Spain.  CIC describes itself as a “transitional initiative for social transformation from below, through self-management, self-organization, and networking.”  It considers the state unable to advance the public good because of its deep entanglements with market capitalism -- so it has set about building its own working alternatives to the banking system and state. 

Since its founding in May 2010, CIC has developed some 300 cooperative projects with 30 local nodes, involving some 4,000 to 5,000 participants.  You can get an idea of the impressive scope of CIC’s work through this interview with Enric Duran by Shareable magazine in March 2014. It’s fairly clear that CIC is serious about building a new global economic system – and not just as a rhetorical statement.  CIC builds real, working alternatives, showing great sophistication about politics, law, economics and digital platforms. 

CIC has now started Fair.Coop to help build a set of free economic tools that will “promote cooperation, ethics, solidarity and justice in our economic relations.” A key element of the Fair-Coop vision is a cryptocurrency, Faircoin, which has been designed to adapt the block-chain technology of Bitcoin with a more socially constructive design. (Faircoin relies less on "mining" new coins than on "minting" them in a more ecologically responsible, equitable ways.)

Many skeptics might scoff at the brash, utopian feel of this initiative.  But in many respects, Faircoin is the ultimate realism. CIC correctly recognizes that the existing monetary system and private banks pose insuperable barriers to reducing inequality and ensuring productive work and wealth for all. The only "realistic" alternative to existing fiat currencies and foreign exchange is to invent a new monetary system!  Fortunately, thanks to the pioneering examples of Bitcoin and other cryptocurrencies and the evolving powers of software, that idea is actually within reach these days.

Michel Bauwens and Vasilis Kostakis have just published a new book that offers a rich, sophisticated critique of our current brand of capitalism, and looks to current trends in digital collaboration to propose the outlines of the next, network-based economy and society.

Network Society and Future Scenarios for a Collaborative Economy is a scholarly book published by Palgrave Macmillan. If you’d like to look at a working draft of the book, you can find it online here.

Bauwens is the founder of the P2P Foundation, and Kostakis is a political economist and founder of the P2P Lab. He is also a research fellow at the Ragnar Nurkse School of Innovation and Governance at Tallinn University of Technology, Estonia. 

Kostakis and Bauwens write:

The aim of this book is not to provide yet another critique of capitalism but rather to contribute to the ongoing dialogue for post-capitalist construction, and to discuss how another world could be possible. We build on the idea that peer-to-peer infrastructures are gradually becoming the general conditions of work, economy, and society, considering peer production as a social advancement within capitalism but with various post-capitalistic aspects in need of protection, enforcement, stimulation and connection with progressive social movements.

The authors outline four scenarios to “explore relevant trajectories of the current techno-economic paradigm within and beyond capitalism.” They envision the rise of "netarchical capitalism," a network-based capitalism, that sanctions several types of compatible and conflicting forms of capitalism – what they call “the mixed model of neo-feudal cognitive capitalism.”  There are variations that are possible, including "distributed capitalism, resilient communities and global Commons."

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