Author Archive

Prosperity in Italy Spurred by One Region’s Coops

by Editors @ Monday, March 8th, 2010. Filed under Economic Democracy, Organizing, Socialism

Poster: Italy's Federation of Consumer Coops

The Emilia-Romagna Coops:

A Market Without Capitalists

 

By Frances Moore Lappe
Alternet.com
A market economy and capitalism are synonymous --- or at least joined at the hip. That's what most Americans grow up assuming. But it is not necessarily so. Capitalism -- control by those supplying the capital in order to return wealth to shareholders -- is only one way to drive a market.


Granted, it is hard to imagine another possibility for how an economy could work in the abstract. It helps to have a real-life example.


And now I do.

In May I spent five days in Emilia Romagna, a region of four million people in northern central Italy. There, over the last 150 years, a network of consumer, farmer and worker-driven cooperatives has come to generate 30 percent to 40 percent of the region's GDP. Two of every three people in Emilia Romagna are members of co-ops.


The region, whose hub city is Bologna, is home to 8,000 co-ops, producing everything from ceramics to fashion to specialty cheese. Their industriousness is woven into networks based on what cooperative leaders like to call "reciprocity." All co-ops return 3 percent of profits to a national fund for cooperative development, and the movement supports centers providing help in finance, marketing, research and technical expertise.
The presumption is that by aiding each other, all gain. And they have. Per person income is 50 percent higher in Emilia Romagna than the national average.

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Who Is To Be Master? What Happens When Workers Occupy Factories

by Editors @ Wednesday, March 3rd, 2010. Filed under Economic Democracy, Socialism, Trade Unions

Photo: Flasko workers in Brazil

[Note from CarlD: Following are two articles on what debates break out when workers occupy or take ownership of factories. The first is from a single case in Brazil, the second from an earlier regionwide meeting on the topic in Venezuela. I think these are examples of the unity and tension in what Gramsci called 'wars of position' and 'wars on maneuver'. The solidarity economy concept is both supported and contested.]

Workers from Occupied

'Flasko' Factory Repond

to Brazil's President Lula

 

On 12/01/2010 President Luis Inacio Lula da Silva said publicly in his weekly column "The President replies”, a question of journalism student (Camila Delmondes) on the struggle of the workers occupied the factory Flaskô.
The response given (which can be read http://imprensa.planalto.gov.br/download/Informe_da_Hora/PRR120110.doc) believe it is essential that the workers' management of Flaskô respond to Squid and the entire working class which was said the President. First of all, it is worth noting that since 12 June 2003 when we occupied the factory and resumed production to ensure our jobs, we await a response from the President. During these seven years almost non stop fighting for the maintenance of Flaskô open under the control of workers and always demanded that the federal government.

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Cooperative ‘Payment Solidarity’ Means a Prevailing Wage or Better

by Editors @ Sunday, February 28th, 2010. Filed under Economic Democracy, Socialism

Payment Solidarity:

Looking Deeper at the

Mondragon Principles

 

By John McNamara

The Mondragon Co-operatives maintain the concept of wage solidarity. From the beginning, the ratio of the highest paid position (manager) and the lowest paid (new worker) was locked at 3:1. In the 80’s this changed and today there are some positions that earn a 6:1 ratio and one (the CEO of the International MCC) who receives 9:1. Even with the tripling of the upper end of the ratio, it is still a far cry from the 150 or even 300:1 ratios that modern stock corporations tend to employ.

What interests me about this principle (and I think that it should be in the Identity Statement as well), is that Mondragon expresses the co-operative value of solidarity. It puts solidarity into the operations of the co-operative.

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Shadow Elite: How Global Power Brokers Undermine Democracy

by Editors @ Tuesday, February 23rd, 2010. Filed under Economy, Globalization

Review: Shadow Elite

by Janine Wedel

The New 'Flexian'

Transnational Elites

 

By Ariana Huffington

Huffington Post

My first HuffPost Book Club selection of 2010 is Janine Wedel's Shadow Elite: How the World's New Power Brokers Undermine Democracy, Government, and the Free Market. It's a gripping, disquieting book that exposes and explains why it's been so hard to bring about any real change in our country -- why Washington no longer seems capable of addressing the problems our nation faces. Fingers have been pointed at everything from gerrymandering to partisan polarization to the misuse of the filibuster. But, according to Wedel, the real problem is much deeper -- and more disturbing -- than any of these.

As she writes in Shadow Elite, a new "transnational" class of elites has taken over our country: "The mover and shaker who serves at one and the same time as business consultant, think-tanker, TV pundit, and government adviser glides in and around the organizations that enlist his services. It is not just his time that is divided. His loyalties, too, are often flexible."

Wedel dubs this new class of influencers "flexians," and the closed system they've created for themselves the "flex net." She attributes their power, among other factors, to the "embrace of 'truthiness,' which allows people to play with how they present themselves to the world, regardless of fact or track record."

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Why the Mondragon Coops Started with a School for Youth

by Editors @ Tuesday, February 16th, 2010. Filed under Economic Democracy, Education

Photo: MCC's worker-owned university

Education, Training

and Information: Looking

Deeper at Mondragon

By John McNamara

Feb. 8, 2010

“It is said that co-operation is an economic movement that utilizes educational activities, but it can also be said that co-operation is an educational movement that utilizes economic activities.“–Don José María Arizmendiarreta, founder of the Mondragon Cooperatives.

Here's a fun exercise, well maybe interesting more than “fun”, at co-operative gathering centers around the principles. Ask the co-operators present, “Which is the most important principle.” If there are more than seven people in the room, you will likely get about eight different answers.

People often focus on the user principles and democracy as being the principles that separate co-operatives from other businesses. Of course, in my opinion, the best answer is that they are all equally important and feed into each other. Case in point: how strong can democracy be if the electorate isn’t educated or informed?

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NJ University and Green Tech Firms Go Solar in a Big Way

by Editors @ Friday, February 12th, 2010. Filed under Economy

 

Nautilus Solar Energy and

SunDurance Energy to Build

Solar Power Facility at

William Paterson University

 

WAYNE, N.J., Jan. 11 /PRNewswire/ -- William Paterson University ("WPU"), Nautilus Solar Energy, LLC ("Nautilus Solar") and SunDurance Energy, LLC ("SunDurance") announced today an agreement to build the largest solar energy facility at a university in the United States. The 3.5 MW solar energy project ("Project") will comprise of rooftop and parking lot solar installations on the WPU campus in Wayne, New Jersey. The first 3 MW phase is expected to go on-line during the summer of 2010; the remaining 500 kW is expected to go on-line in early 2011.

"Nautilus Solar is proud to support WPU's leadership in sustainability by supplying low cost clean solar power," said Nautilus Solar CEO James M. Rice.

Nautilus Solar will finance, own and operate the solar facility under a 15-year Power Purchase Agreement ("PPA"), through which WPU will purchase a renewable energy source at a reduced rate without any upfront costs. The solar power system is expected to reduce WPU's energy costs by $4.3 million over the 15-year term. The Project will be designed and constructed by SunDurance Energy, a leading NJ based solar system installer. Nautilus Solar will fund the installation in part through a loan provided by New Jersey Economic Development Authority.

Stephen Bolyai, WPUNJ's Vice President for Administration and Finance, states, "This project will be a landmark project for the University. In addition to reducing our energy costs and carbon footprint, the solar facility will provide excellent learning opportunities to our students."

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Venezuela: Epicenter of Counter-Hegemonic Bloc

by Editors @ Monday, February 8th, 2010. Filed under Global Justice, Latin-American, Socialism

Interview with William I. Robinson:

The challenges facing 21st century socialism in Venezuela

``In Venezuela the biggest threat to the revolution does not come from the right-wing political opposition but from the so-called `endogenous' or `Chavista' right wing, in that chunks of the revolutionary bloc, including state elites and party officials, will develop a deeper stake in defending global capitalism over socialist transformation''' -- William I. Robinson

Interview with William I. Robinson, professor of sociology, University of California at Santa Barbara, by Chronis Polychroniou, editor of the Greek daily newspaper Eleftherotypia

February 1, 2010 -- ZNet

Chronis Polychroniou: There are scare stories coming from Venezuela. The border is heating up, infiltration is taking place, a new Colombian military base near the border, US access to several new bases on Colombia and constant subversion. Is the regime concerned about a possible invasion? If yes, who is going to intervene?

William I. Robinson: The Venezuelan government is concerned about a possible US invasion and certainly an outright invasion cannot be ruled out. However I think the US is pursuing a more sophisticated strategy of intervention that we could call a war of attrition.

We have seen this strategy in other countries, such as in Nicaragua in the 1980s, or even Chile under Allende. It is what in CIA lexicon is known as destabilisation, and in the Pentagon's language is called political warfare -- which does not mean there is not a military component. This is a counterrevolutionary strategy that combines military threats and hostilities with psychological operations, disinformation campaigns, black propaganda, economic sabotage, diplomatic pressures, the mobilisation of political opposition forces inside the country, carrying out provocations and sparking violent confrontations in the cities, manipulation of disaffected sectors and the exploitation of legitimate grievances among the population.

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Reject the Old Patterns - China’s 21st Century Path

by Editors @ Sunday, February 7th, 2010. Filed under China, Global Justice, Socialism

Poster: Oppose hegemonism, uphold world peace - maintain a foreign policy of independence and own initiative, 1983

'Three Strategies'

to Tackle the

'Three Challenges'

 

By Zheng Bijian

It is far from easy for a country of 1.3 billion population to achieve peaceful rise. During the first half of the 21st century, in particular, China faces a period of both "golden opportunity for development" and "standing out contradictions". The latter, in the field of economic and social progress, can be boiled down to "three major challenges".

The first challenge comes from resources, particularly energies. China lags behind the world in terms of per capita hold of resources; meanwhile, due to a fast developing speed yet low technical level, China's manufacturing industry is among the most energy-consuming ones in the world. The huge consumption is intensified by a large-scale shift of manufacturing bases to China. As a result resources, including energies, have been in tight supply.

The second challenge is from ecological environment. A spoiled environment caused by serious pollution, worsened ecological conditions, huge consumption of resources, and low reclamation has become a bottleneck in the sustainable development of the Chinese economy.

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Needed: Self-Management and Workplace Democracy

by Editors @ Tuesday, January 26th, 2010. Filed under Economic Democracy, Socialism

Participatory Management:

Looking Deeper at the

Mondragon Principles

 

By John McNamara

The next principle from Mondragon is that of Participatory Management. This seems like a no-brainer for worker co-operatives. What is the point of going through all the work of setting up a worker co-op if the workers don’t actually have a say in how the place is run? They would be better off in a unionized Employee Stock Ownership Program.

I’ll get more into this in a second. First, I want to share the language of the principle from Mondragon (translated, as they all are, of course):

“The Mondragon Cooperative Experience believes that the democratic character of the Cooperative is not limited to membership aspects, but that it also implies the progressive development of self-management and consequently of the participation of members in the sphere of business management which, in turn, requires:

a) The development of suitable mechanisms and channels for participation.

b) Freedom of information concerning the development of the basic management variables of the Cooperative.

c) The practice of methods of consultation and negotiation with worker-members and their social representatives in economic, organisational and labour decisions which concern or affect them.

d) The systematic application of social and professional training plans for members.

e) The establishment of internal promotion as the basic means of covering posts with greater professional responsibility.”

(source: The Mondragon Cooperative Experience, by José María Ormaechea, 2000)

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Gramsci and the Need to Learn Strategy in Depth

by Editors @ Wednesday, January 20th, 2010. Filed under Organizing, Socialism

The Relevance of

Gramsci’s Theory

for Today

By Peter Latham

January 3, 2010 -- I first read Gramsci in English over 40 years ago. Moreover, my thesis on Theories of the Labour Movement—a Marxist critique of non-Marxist theories of industrial relations—used Gramsci’s concept of the “organic” working class intellectual to explain twentieth century rank and file movements in the British building industry.[1] This paper is based on the Gramsci section in my forthcoming book on The State and Local Government.[2]

Roger Simon—the co-author with Noreen Branson of The British State published in 1958 at the height of the Cold War when they used the pseudonyms James Harvey and Katherine Hood[3]—subsequently revised his approach to take into account what he saw as Gramsci’s modification of classical Marxism, including Leninism. The latter, according to Simon, saw power as concentrated in the state and under the exclusive control of the capitalist class (or part of it) and took the view that the construction of socialism could only begin after the working class took power—as did Harvey and Hood.[4] Conversely, for Simon, Gramsci’s concept of the integral state—“political society plus civil society, in other words, hegemony protected by the armour of coercion”[5]—implied that the working class could only achieve state power after it had won a substantial measure of hegemony in civil society.[6] Simon still rejected the social-democratic theory of state neutrality: but he also rejected Gramsci’s view that factory councils should replace parliamentary democracy.[7] Hence, as well as the democratisation of parliament, Simon advocated direct democracy in the local community and workplace plus broad alliances based on the left and other social movements.[8]

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High-Speed Rail - Why We Need a Green Industrial Policy

by Editors @ Sunday, January 17th, 2010. Filed under Economic Democracy, Green Industry, High Road Economics

 

China's High-Speed-Rail Revolution:

Dedicated lines are the key

to record-breaking speeds.

By Peter Fairley
MIT Technology Review

Jan. 11, 2010 - China has begun operating what is, by several measures, the world's fastest rail line: a dedicated 968-kilometer line linking Wuhan, in the heart of central China, to Guangzhou, on the southeastern coast. In trials, the "WuGuang" line trains (locally built variants of Japan's Shinkansen and Germany's InterCity Express high-speed trains) clocked peak speeds of up to 394 kilometers per hour (or 245 miles per hour). They have also recorded an average speed of 312 kph in nonstop runs four times daily since the WuGuang's December 26 launch, slashing travel time from Wuhan to Guangzhou from 10.5 hours to less than three.

WuGuang's speed blows away the reigning champion: France's TGV, which runs from Lorraine to Champagne and averages 272 kph. It also bests China's first high-speed train, the Beijing-to-Tianjin trains that average 230 kph, as well as Shanghai's magnetically levitated airport shuttle trains that can hit 430 kph but average less than 251 kph.

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Worker Coops and Their Requirements for Capital Within Limits

by Editors @ Tuesday, January 12th, 2010. Filed under Economic Democracy, High Road Economics, Socialism
 
Photo: Punching machine at MCC factory

The Instrumental and

Subordinate Nature of Capital:

Looking Deeper at the

Mondragon Principles

A series on the core principles of
the Mondragon Cooperatives in Spain

 

By John McNamara

“We do not aspire to economic development as an end, but as a means.”

–Don José María Arizmendiarrieta, spiritual founder of Mondragon

This Mondragon principle, in practice, operates more closely to the Identity Statement principle of Member Economic Participation. I included it in this side road of the over all series because I believe that Mondragon presents a nuance all too often lost in the co-operative movement and, in the 'silo-ed' environment of the US worker co-operative movement, we often tend to forget the role of capital in our organizations is significantly different from that of our industry and capitalist competitors.

The role of capital in a worker co-operative should be two-fold:

1) ensure the on-going operations of the co-operative

2) allow the co-operative to maintain the highest level of safety and quality of work-life.

Thus, this principle presents the balancing act of worker co-operatives. As the opening quote suggests, if we are just in it for the money, what are we really trying to accomplish? However, DJMA has also said, “Cooperativism without the structural capacity to attract and assimilate capital at the level of the requirements of industrial productivity is but a temporary solution, an invalid formula.”

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China, ‘Clean Coal’ and New Technologies

by Editors @ Thursday, January 7th, 2010. Filed under China, Environment

World's Top Polluter

Emerges as Green

Technology Leader

 

By SHAI OSTER

BEIJING -- Dec. 15, 2009 - Xu Shisen put down the phone and smiled. That was Canada calling, explained the chief engineer at a coal-fired power plant set among knockoff antique and art shops in a Beijing suburb. A Canadian company is interested in Mr. Xu's advances in bringing down the cost of stripping out greenhouse-gas emissions from burning coal.

Engineers led by Mr. Xu are working to unlock one of climate change's thorniest problems: how to burn coal without releasing carbon into the atmosphere. China's Push for Clean Coal

Mr. Xu is part of a broader effort by China to introduce green technology to the world's fastest-growing industrial economy -- a mission so ambitious it could eventually reshape the business, just as China has done for everything from construction cranes to computers.

China looms large over the global climate summit in Copenhagen, where Chinese officials are pressing the U.S. and other rich nations to accept new curbs on their emissions and to continue to subsidize poor nations' efforts to adopt clean-energy technology. China is the world's biggest source of carbon emissions. Less understood is the way China is now becoming a source of some of the solutions.

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Overcoming the Rift Between Worker Coops and the Labor Left

by Editors @ Monday, January 4th, 2010. Filed under Economic Democracy, Labor Movement

'Sovereignty of Labor:'

A Deeper Look at the

Mondragon Principles

A series on the core principles of

the Mondragon Cooperatives in Spain

By John McNamara

http://www.cooperativeconsult.com

The Mondragon principle “Sovereignty of Labor” created departure from the cooperative movement. While the Rochdale Pioneers had good intentions, they abandoned worker cooperation in the 1870’s. The Fabian Socialist moved even further from the ideals of Robert Owen declaring consumerism as the lowest common denominator for human relationships eschewing workers as merely another stakeholder group. Even the French cooperativist Charles Gide turned away from worker associations. Sadly, this act left the labor movement adrift from the cooperative world even as organizations such as the Industrial Workers of the World and the Congress of Industrial Organizations developed worldviews akin to the ideal of cooperation.

In the US, as in most of the Capitalist dominated world, the idea of labor being sovereign is almost non-existent. Business schools spend a lot of money teaching future managers how to manage workers—increase their productivity and the companies profits Except in the more enlightened firms, managers treat workers as errant children. Likewise, the dominant culture makes work something to be avoided and champions obstruction as “fighting the man”. People who do work hard tend to be treated as suck-ups and “upwardly mobile”. We mock the Ragged Dick stories in which “by luck and by pluck and good boy may succeed”. We have been conditioned to hate work and to distrust anyone who suggests that we work hard. The wobblies ran a cartoon called Blockhead who ridiculed the “company man”.

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Jobs Campaigns, New Deal History, National Service and Socialist Values

by Editors @ Tuesday, December 29th, 2009. Filed under Economic Democracy, Economy, Labor Movement, Organizing, Socialism

A Left Role, Renewed Identity,

and How-To, in Campaigns for

National Service Jobs Programs

 

By John Case

Socialist-Economics Group

 

Does the current crisis justify an expanded role for government as an employer of last result?

Consider the following facts from EPI research:

Number unemployed: 15.4 million (up from 7.5 million in December 2007) Portion of official unemployed considered structural: 3.9 million Portion of unemployed who have been jobless more than six months: 38.3% Total jobs lost during the recession: 8.0 million Jobs needed to return to pre-recession unemployment rate: 10.9 million Number of job-seekers per job opening: 6.1 Unemployment rate: 10.0% Underemployment rate: 17.2%; Share of workers un- or underemployed: more than 1 in 6 States with double-digit unemployment in October, 2009: 15 White unemployment: 9.3%; African-American unemployment: 15.6%; Hispanic unemployment:12.7% Manufacturing jobs lost since the start of the recession: 2.1 million (15.5% of sector's jobs) Construction jobs lost in the recession: 1.6 million (20.8%, nearly one in five construction jobs) Mass layoffs (50 or more people by a single employer) in October 2009: 2,127; jobs lost:217,182 Under- and unemployed, marginally attached and involuntary part-time workers: 26.9 million

Americans with no health insurance in 2008: 46.3 million Annual Social Security benefit for average retiree: $13,922; Share of older Americans receiving all their income from Social Security: more than 1 out of 4 Number of children in poverty in 2008: 14.1 million (over one-third) Drop in real median income from 2007 to 2008: 3.6% (largest one-year drop since 1967) Growth rate of nominal, hourly wages of production workers over the last three months:1.7% Additional people covered by Medicaid/SCHIP in 2008: 3 million

Not since the Great Depression has structural unemployment been so intense or sustained. Despite faster and smarter liquidity and fiscal efforts by government than occurred then, employment decline has merely decelerated 24 months into what is now dubbed 'The Great Recession'. It is not yet near enough to avert 5-10 years of unemployment rates above 6% (the level at which the 'Great Recession' started). The foundation of New Deal anti-depression actions, and one of the most successful and long lasting in its effects, was directly putting men to work in public works projects that became associated with several national service programs. The economist Hyman Minsky coined the term 'Employer of Last Resort' to describe government full employment efforts, which were part of his economic prescription, discussed more below, for countering capitalism's inherent vulnerability to financial instability.

This article explores the appropriateness, precedents and how-to's of national service programs (the chief US version of employer of last resort). in responding to the current crisis. The moral and social virtues of putting the unemployed to work in the creation of useful and meaningful public goods, instead of subjecting them to sustained idleness, should be self-evident.

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