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Archive for September, 2008

We/you are not alone … how the peers are organizing

photo of Michel Bauwens

Michel Bauwens
30th September 2008


Via Mediacology:

I was at this Paul Hawken talk and it remains one of the most inspiring I’ve seen. Given these troubled days, I thought it would be nice to take a breather and to remember we are the ones we have been waiting for.

Recommended Video by Paul Hawken:

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Posted in P2P Movements, Video | 1 Comment »

Biobazaar (2): open biology and appropriate technology

photo of Michel Bauwens

Michel Bauwens
30th September 2008


Book of the Week: Biobazaar. The Open Source Revolution and Biotechnology. By Janet Hope. Harvard University Press, 2008.

We continue our presentation of Janet Hope’s new book on open source biology.

Janet Hope:

Another broad social movement with potentially very strong connections to open source biotechnology is the appropriate technology (AT) movement. Adherents believe that the failure of decades of technology transfer from industrialized countries to solve problems of poverty and hunger in the developing world suggests a need for development pathways that de-emphasize growth and technological monoculture. They advocate the development and use of alternative technologies that are appropriate to local user needs. Such technologies are variously called intermediate, progressive, alternative, light-capital, labor-intensive, indigenous, appropriate, low-cost, community, soft, radical, liberatory, and convivial technologies.

To appreciate the connection between open source biotechnology and the AT philosophy, consider the perspective on technological innovation articulated by Austrian philosopher and anarchist Ivan Illich in his book Tools for Conviviality.

For Illich, tools are intrinsic to social relationships: individuals relate to society through the use of tools, either by actively mastering those tools or by being passively acted upon. A tool is “convivial” to the extent that it gives each person who uses it the opportunity to enrich the environment with the fruits of his or her vision. Convivial tools facilitate autonomous and creative intercourse among people and between people and their environment; by contrast, “industrial” tools allow designers to determine the meanings and expectations of users. In a technological age, rationally designed convivial tools are the basis for participatory justice—that is, for justice that consists not only in equal distribution of technological outputs (for example, material goods such as drugs or seeds) but also equal control over inputs.

“The principal source of injustice in our epoch,” argues Illich, “is political approval for the existence of tools that by their very nature restrict to a very few the liberty to use them in an autonomous way.”

Consider the use of agricultural biotechnology to produce technical “locks” such as hybridization and genetic use restriction technologies (“GURTs”) that render seed unsuitable for replanting or suppress the expression of introduced traits in saved seed. These are only the most extreme examples: the use of genetically engineered crops that may contaminate others in the vicinity also restricts the autonomy of those who would prefer to grow traditional crops; even the development of new food crops for developing countries is often a case of tools “acting upon” the intended beneficiaries instead of empowering them to define their own productive future. An Andean potato farmer may be very poor and yet not want a genetically engineered potato that boosts yield so as to generate a cash crop. Such a commercial existence may threaten a way of life that the farmer values more than he or she values the ability to buy industrial goods; yet a closely related technology that improves the taste of a variety the family eats every day may be very welcome. In Chapter 6, I noted that the capital intensiveness of biotechnology research and development is sometimes perceived as an obstacle to the implementation of open source. This view is linked to assumptions about the nature of biotechnology as an essentially industrial—as distinct from convivial—technology. But molecular biotechnology and other advanced technologies need not be anticonvivial. Science can be used, not to replace human initiative with highly programmed tools, but to facilitate autonomous, decentralized production. New possibilities for cognitive and material advance opened up by basic discoveries in biotechnology offer a choice: we can apply our new understanding to develop tools that would propel us into a “hyperindustrial age,” or we can use it to help us develop truly “modern and yet convivial tools” that “enable the layman to shape his immediate environment.” Such a convivial biotechnology need not be inherently expensive, because it would consist of simple tools that work with rather than against the tendency of living things to proliferate of their own accord.

Janet concludes:

These are the very properties that open source licensing seeks to confer through the guarantee of “technology freedom,” described in Chapter 5. Meanwhile, bazaar governance ties the rewards for knowledge creation to the diffusion of knowledge rather than its exclusive control and restores the patterns of communication through which knowledge goods “come to life in society as public goods.”83 Open source biotechnology would give those who are excluded from the organized interests of science, state and industry the ability not merely to question the trajectory of technology development, but to affect that trajectory directly by participating in the design of the technology itself.”

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Posted in Open Design, Open Models, P2P Science | No Comments »

A warning from Naomi Klein

photo of Michel Bauwens

Michel Bauwens
30th September 2008


Naomi Klein in her editorial on the financial crisis:

It would be a grave mistake to underestimate the right’s ability to use this crisis — created by deregulation and privatization — to demand more of the same. Don’t forget that Newt Gingrich’s 527 organization, American Solutions for Winning the Future, is still riding the wave of success from its offshore drilling campaign, “Drill Here, Drill Now!” Just four months ago, offshore drilling was not even on the political radar and now the U.S. House of Representatives has passed supportive legislation. Gingrich is holding an event this Saturday, September 27 that will be broadcast on satellite television to shore up public support for these controversial policies.

What Gingrich’s wish list tells us is that the dumping of private debt into the public coffers is only stage one of the current shock. The second comes when the debt crisis currently being created by this bailout becomes the excuse to privatize social security, lower corporate taxes and cut spending on the poor. A President McCain would embrace these policies willingly. A President Obama would come under huge pressure from the think tanks and the corporate media to abandon his campaign promises and embrace austerity and “free-market stimulus.”

We have seen this many times before, in this country and around the world. But here’s the thing: these opportunistic tactics can only work if we let them. They work when we respond to crisis by regressing, wanting to believe in “strong leaders” – even if they are the same strong leaders who used the September 11 attacks to push through the Patriot Act and launch the illegal war in Iraq.

So let’s be absolutely clear: there are no saviors who are going to look out for us in this crisis. Certainly not Henry Paulson, former CEO of Goldman Sachs, one of the companies that will benefit most from his proposed bailout (which is actually a stick up). The only hope of preventing another dose of shock politics is loud, organized grassroots pressure on all political parties: they have to know right now that after seven years of Bush, Americans are becoming shock resistant.’

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Posted in Empire, P2P Public Policy | No Comments »

Special issue on using Open Source methods for social innovation

photo of Michel Bauwens

Michel Bauwens
30th September 2008


You’ll find the free online magazine mentioned below here.

From the editor’s intro:

Social Innovation is the theme of the September issue of the Open Source Business Resource. This issue captures important aspects of how open source assets, processes, and values may be used to create social and environmental value. Some of these aspects are new and still blurry, others are clear and familiar. The publication of this issue signals a strong interest in the use of open source to support non-profit and charitable initiatives. Technology company managers, entrepreneurs, academics, contributors to open source projects, and staff of non profit organizations and foundations are encouraged to continue to use open source to enable social innovation.

In this issue, authors from very diverse backgrounds have contributed insightful articles that examine: i) global projects that use open source to benefit society; ii) open source-like approaches to organizing the collaborative efforts that lead to social innovation; iii) challenges and elements of social innovation; and iv) ways to align university capacity with the social innovation agenda.”

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Posted in Open Models, P2P Public Policy | No Comments »

Does genetic food become palatable when it is a public good

photo of Michel Bauwens

Michel Bauwens
29th September 2008


Seed Magazine reports on efforts to make genetic engineering research a public good and says that it is vital for the next green revolution.

Excerpt:

Free distribution and local ownership of bioproperty will be one crucial aspect of the new Green Revolution. Another will be the cultivation of locally adapted varieties. “The second Green Revolution is going to be much more complicated than the first,” says Nina Fedoroff, a plant geneticist at Penn State, and science and technology adviser to the US Secretary of State. This time around, Fedoroff explains, scientists will have to address local needs and local crop varieties. Consider ringspot-virus-resistant GM papaya: “It’s been a wonderful, wonderful accomplishment,” says Fedoroff, “but the transgenic plants that are protected from the virus in Hawaii aren’t going to work in the Philippines.” Building locally focused biotech and training biotech-capable scientists is “a big deal,” says Fedoroff. “It’s a huge investment, and it needs to be done everywhere.”

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Posted in P2P Development, P2P Science | No Comments »

The other singularity: from the Great Meltdown to the Great Escape

photo of Michel Bauwens

Michel Bauwens
29th September 2008


A brilliant excerpt from the fifteenth chapter of Kevin Carson’s draft on Organisational Theory, which I will discuss in detail in daily submissions from October 2 to 5. If you can’t wait, go read it now, it’s has all the makings of a masterpiece.

In this excerpt, Kevin Carson discusses a possible counter-strategy to the collapse of the financial economy:

We’re experiencing a singularity, of sorts, in which it is becoming impossible for capital to prevent a shift in the supply of an increasing proportion of the necessities of life from mass produced goods purchased with wages, to small-scale production in the informal and household sector. The upshot is likely to be something like Vinay Gupta’s “Unplugged” movement (see below), in which the possibilities for low-cost, comfortable subsistence off the grid result in exactly the same situation, the fear of which motivated the propertied classes in carrying out the Enclosures: a situation in which the majority of the public can take wage labor or leave it, if it takes it at all, the average person works only on his own terms when he needs supplemental income for luxury goods and the like, and (even if he considers supplemental income necessary in the long run for an optimal standard of living) can afford in the short run to quit work and live off his own resources for prolonged periods of time, while negotiating for employment on the most favorable terms. It will be a society in which workers, not employers, have the greater ability to walk away from the table. It will, in short, be the kind of society Wakefield lamented in the colonial world of cheap and abundant land: a society in which labor is hard to get on any terms, and almost impossible to hire at a low enough wage to produce significant profit.

The potential for defection is heightened by the greater efficiency with which the counter-economy extracts use-value from a given amount of land or capital.

…[T]he owning classes use less efficient forms of production precisely because the state gives them preferential access to large tracts of land and subsidizes the inefficiency costs of large-scale production. Those engaged in the alternative economy, on the other hand, will be making the most intensive and efficient use of the land and capital available to them. So the balance of forces between the alternative and capitalist economy will not be anywhere near as uneven as the distribution of property might indicate.

If everyone capable of benefiting from the alternative economy participates in it, and it makes full and efficient use of the resources already available to them, eventually we’ll have a society where most of what the average person consumes is produced in a network of self-employed or worker-owned production, and the owning classes are left with large tracts of land and understaffed factories that are almost useless to them because it’s so hard to hire labor except at an unprofitable price. At that point, the correlation of forces will have shifted until the capitalists and landlords are islands in a mutualist sea–and their land and factories will be the last thing to fall, just like the U.S Embassy in Saigon.

Johan Soderberg refers to the possibility that increasing numbers of workers will “defect from the labour market” and “establish means of non-waged subsistence,” through efficient use of the waste products of capitalism. [Soderberg, p. 172.] The “freegan” lifestyle (less charitably called “dumpster diving”) is one end of a spectrum of such possibilities. At the other end is low-cost recycling and upgrading of used and discarded electronic equipment: the rapid depreciation of computers makes it possible to add RAM to a model a few years old at a small fraction of the cost of a new computer, with almost identical performance.

The central barrier to garage production of computers is the microprocessor, which can only be produced on capital equipment costing nearly a billion dollars. But reprogrammable microprocessors will eliminate that barrier, with millions of discarded chips enabling garage industry to operate entirely on recycled inputs in the same way that minimills reprocess scrap steel on a small scale wherever a market exists. In Cory Doctorow’s Themepunks, for example, a small workshop uses the chips harvested from thousands of discarded Elmo dolls.

Paul Goodman and Ivan Illich both remarked, in their unique ways, on the effect of radical monopolies in making comfortable poverty impossible. As the alternative economy undermines the ability of artificial property rights to levy tribute on access to the means of subsistence, comfortable poverty becomes increasingly feasible.

Dave Pollard, of How to Save the World blog, describes his own version of the singularity in “The Virtuous Cycles of the Gift Economy.” As people do the things they love and become better at them, it takes less and less money to live. People need to work less, and can devote the saved time not only to further developing production technique. People develop more skills, become more self-sufficient, and less dependent on store-bought commodities purchased with wages. They also invest a greater share of their productive energy in the gift economy and mutual aid, and a greater share of their time in building social capital. As a result, people on average are happier, healthier, and more responsible and competent; social problems and social costs decline, which further adds to the virtuous cycle of reduced cost and frees up more time from work. “These cycles are, of course, subversive. They threaten to undermine and starve the ‘market’ economy by freeing us, the end-customers of that economy, from the need to pay money into it.”

This undermining and starving is exactly what we discussed in Chapter Thirteen: building the structure of the new society within the shell of the old. Pollard describes, as one way of bring about major global change, “incapacitation–rendering the old order unable to function by sapping what it needs to survive.”

But suppose if, instead of waiting for the collapse of the market economy and the crumbling of the power elite, we brought about that collapse, guerrilla-style, by making information free, by making local communities energy self-sufficient, and by taking the lead in biotech away from government and corporatists (the power elite) by working collaboratively, using the Power of Many, Open Source, unconstrained by corporate allegiance, patents and ‘shareholder expectations‘?

Gupta’s short story “The Unplugged” related his vision of how such a singularity would affect life in the West.

Wealth stored as dollars was essentially a share in America’s national economy – a credit note backed by the US Government. But Buckminster Fuller showed us that wealth-as-money was a specialized subset of Wealth – the ability to sustain life.

To “get off at the top” requires millions and millions of dollars of stored wealth. Exactly how much depends on your lifestyle and rate of return, but it’s a lot of money, and it’s volatile depending on economic conditions. A crash can wipe out your capital base and leave you helpless, because all you had was shares in a machine.

So we Unpluggers found a new way to unplug: an independent life-support infrastructure and financial architecture – a society within society – which allowed anybody who wanted to “buy out” to “buy out at the bottom” rather than “buying out at the top.”

If you are willing to live as an Unplugger does, your cost to buy out is only around three months of wages for a factory worker, the price of a used car. You never need to “work” again–that is, for money which you spend to meet your basic needs.

The idea was to combine “Gandhi’s Goals” (“self-sufficiency,” or “the freedom that comes from owning your own life support system”) with “Fuller’s Methods” (the dymaxion principle of getting more with less).

In conclusion:

If this singularity will enable the producing classes in the industrialized West to defect from the wage system, in the Third World it may enable them to skip that stage of development altogether. Gupta concluded “The Unplugged” with a hint about how the principle might be applied in the Third World: “We encourage the developing world to Unplug as the ultimate form of Leapfrogging: skip hypercapitalism and anarchocapitalism and democratic socialism entirely and jump directly to Unplugging.”

Gupta envisions a corresponding singularity in the Third World, when the cost of an Internet connection, through cell phones and other mobile devices, falls low enough to be affordable by impoverished villagers. At that point, the transaction costs which hampered previous attempts at disseminating affordable intermediate technologies in the Third World, like Village Earth’s Appropriate Technology Library or Schumacher’s Intermediate Technology Development Group, will finally be overcome by digital network technology.

The question of the transition period is a real one. There is a very real possibility that the material foundations of the new decentralized economy will not be sufficiently laid down before the old economy’s system of circulation breaks down, so that many who are dependent on employment lose their means of support with nothing to take its place. How to manage the transition is far beyond the scope of this analysis. My main purpose has been, first, to show that such a transition is likely, whether we like it or not, as state capitalism reaches its limits and the technical and organizational means of withdrawing from it become available; and second, to show the likely outlines of a successor society based on the new technical and organizational means. My personal opinion, as I have already discussed in Chapter Twelve in regard to the crisis of centralization resulting from Peak Oil, is that the transition will be relatively long and stable, compared to (say) the catastrophic collapse scenarios of James Kunstler.

At any rate, the more widespread the means of subsistence in the informal and household economies, and the more local infrastructure exists for exchange and barter, the more closely the transition crisis will resemble the paper crisis envisioned by Schumacher. For someone who has avoided or paid off credit card debt, who has obtained a modest mortgage and made paying it off as quickly as possible his top priority, and who has a large and productive vegetable garden, the possibility of unemployment is scary. But it’s nowhere near as terrifying as for someone who’s currently barely making the monthly interest payments on his mortgage, and who’s cashed out all his home equity and maxed out all his credit cards buying a Wii and a big-screen TV and getting a new model car every couple years. Even for the creditors and the unemployed described by Schumacher’s questioner, having a roof over your head free and clear and a reliable source of food will reduce, to a large extent, the concrete harm from the paper collapse.

My hope, at least, is that conventional measures like GDP will suffer (if only gradually, over a generation) what appears to be a catastrophic implosion, as people simply stop buying shit, cut back on the hours of wage labor they previously worked to earn the money to pay for shit, and supply more and more of their own needs producing for themselves and exchanging with their neighbors. My hope, at the same time, is that people will be so busy producing for themselves and their neighbors, and enjoying their control over their own lives and work and consumption, that the collapse of the state capitalist economy won’t matter very much to them.

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Posted in Empire, P2P Economics, P2P Manufacturing | 4 Comments »

Thoughts on P2P production and deployment of physical objects

photo of Michel Bauwens

Michel Bauwens
29th September 2008


Our Italian friend Marco Fioretti, of the social-catholic free software advocacy group Eleutheros, a man with a longstanding experience in the manufacturing of integrated circuits, has summarized a discussion we have on the specific difficulties of using peer to peer methods in the sphere of real physical production.

Marco summarizes the other contributions, and strongly challenges them.

Here only the abstract and the conclusion, so go to the full article for the concrete case studies and objections.

Marco Fioretti:

1. Abstract

These days there is a great interest in finding ways to build a more open and balanced society through social structures, legal frameworks, proper education and innovative technical practices. The goal is to enable as many people as possible to produce, independently or directly collaborating with other individuals without any intermediary or delegation of power, everything one needs to live happily, creatively and sustainably. P2P networks for digital distribution and the P2P Free/Open Source software development model are often taken as examples to apply to other fields, due to their evident success.

This article is an edited summary of two email conversations which took place among a few subscribers of the p2p-research mailing list during spring of 2008 about the applicability of P2P development models to physical objects and infrastructures. It first sums two independent P2P visions or proposals: microelectronics manufacturing and deployment of telecom networks. Next follow my (Marco F.) comments and objections to each case study. The last chapter presents some general conclusions and questions about intrinsical limits of P2P production of physical objects or about its very necessity in some areas: if, to which extent, how and (maybe the more important part) where and when the P2P production models for immaterial products and services can be applied to the production and deployment of physical objects and infrastructures. ”

2. Conclusion

Before concluding, let’s remind where we started from: are there limit to “P2P production and deployment of physical objects”? Is it possible and desirable in any field? What is the best scale for production, deployment and management of (networks of) complex physical objects? Can centralization be thoroughly substituted by appropriate scale as in the P2P movement? (the two last questions were asked to me by other participants in the threads).

Let’s first sum up a few key points:

* With immaterial objects, design (and compilation when applicable) is also all it takes to manufacture and maintain. In those cases, design is production.

* If you cannot manufacture something you need by yourself in a sustainable way (whatever “sustainable” means for you), it doesn’t matter much if you can design it.

Generally speaking, I agree that decreasing the scale of some human enterprises would increase the quality of life for everyone and that more P2P than there is today would be a good thing. This said, I think that the comments and objections to the two case studies highlight a few general issues which deserve attention.

The first is that, in any given age, P2P production of physical objects is only possible and economically meaningful where the complexity of those objects and of all the tools needed to build them from raw materials is so high as is the case of microelectronics today. Using in a P2P way sophisticated integrated circuits, instead, to build something new, is already possible today and maybe should receive more attention. Of course, “complexity” is a function of the state of technology: what is impossible today may very well become absolutely ordinary bricolage some time in the future. What matters is not to underestimate the limits of current technology, that is to not confuse Research with Development.

The second, very general advice that comes from this analysis is that accepting as good, or proposing, P2P-only societies or lifestyles on assumptions like “today, cost of software is zero and cost of computer hardware is nearing zero” may generate frustration, to say the least. Computer hardware, FPGAs and things like the BUG or any other microelectronics device, are “nearing zero cost” only because produced in diametrically opposed ways to P2P philosophy and techniques, and this is not going to change in the near/medium term. With respect to “the cost of software being zero”… Linux, mass access to the Internet and all the empowerment this implies, digital creative works and P2P networks were and remain cheap to produce, use, distribute and co-develop in innovative ways just because they rely on (should we say “live completely inside”?) a huge quantity of physical objects (computers and networks) which are affordable only because of mass, centralized production.

This may be a temporary inconvenient, of course, but let’s move to the third and most interesting general point, which is: maybe there are some areas of human activity where, regardless of the technology level of any given period, the ideal scale may not be the P2P one, but something much closer to the much larger one used to produce the same good and services today.

While this shold not be meant in any way as a full endorsement of the current system, the fact that many “centralizations” of today do more harm than good is not a rigorous proof that any conceivable centralization is always bad period. Couldn’t it be that P2P, which remains a good thing, isn’t really doable nor desirable in some areas, telecom networks being one of them, because it wouldn’t really improve quality of life? Are we really sure that “anything large in scale should be broken down, decentralized”?

Look at the Internet or at mobile phone networks. They make P2P and Free Software development possible and can greatly lower the costs of many self-entrepreneurs, from African fishermen to web 2.0 gurus, or make public officials more accountable and easier to control. But in order for all this to physically work at the smallest possible cost, the physical infrastructure must be as homogeneous and obeying to centralized technical specifications as possible. Ditto for the specs of the single parts constituting it. What you need to decentralize on the Internet, in order to build a fairer world and to make the P2P culture prosper, is things like DNS management, Net neutrality, production of application software. Let’s decentralize the right things at the right level.

I wonder if this last point may be some sort of general “law”, if you’ll forgive me this term, which puts some intrinsical, upper limit on what P2P can do or on what it should be used for. As Einstein put it, “everything should be made as simple as possible – but not simpler”.

Living cells, ants or bees can organize themselves spontaneously in a P2P-like manner without any supervisor or mass-produced machinery. Human beings, on the other hand, have both physical and intangible needs which are a tiny bit more complex than those of bees. Think to affordable and open access to quality education, culture in all its forms, communication or advanced health care. Think to services like weather forecasts reliable enough to minimize human casualties or food waste. Unlike food, clothes and shelter all these things demand (at least) lots of physical objects which cannot be made from scratch at home, together with very large and sophisticated (=expensive) physical networks like the Internet, professionally built and managed.

Even if the cost problem didn’t exist, technologically sophisticated activities imply specialization, which sooner or later brings the need for coordination and some form of centralization. Is there any way to completely escape this fact without giving up all the real benefits on quality of life which are possible with today’s technologies?

What about aiming directly for a mixed model, instead, one where decentralized (P2P) and centralized activities mutually enforce each other? It may be not only much easier to build (by forcing the current system to evolve, instead of starting over): it may actually be the best possible solution, even better than a 100% P2P one.”

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Posted in Open Design, Open Hardware, P2P Economics, P2P Manufacturing, P2P Theory, Peer Production | No Comments »

Christian Siefkes on the difference between capitalism and the peer economy

photo of Michel Bauwens

Michel Bauwens
29th September 2008


This is a response to some of the challenges expressed by Stefan Merten, who believes Siefkes book re-introduces capitalist concepts in another form.

Christian Siefkes:

In so far as current peer production tends to go, my solution is the same as of current peer production processes: you can take anything, without having to give anything back, as long as you don’t take it _away_ from others. That means that you can freely take information and anything else that can be copied freely. Current peer production tends to end here.

The problem that arises next is how to organizing taking when taking does mean taking away: say if I want to take a bicycle, but somebody else wants to take it too — if there’s only one bicycle, and if one of us would take it, she would take it away from the other (she would deny her the possibility of taking it). My problem to this solution is basically: “arrange production, through social agreements, so as to avoid that taking becomes taking away — i.e. arrange production so as to ensure that there is one bicycle (etc.) for everyone who needs one.” People thus enter a joint agreement to help each other produce what each of them needs.

Realizing this common goal requires effort, and the agreement must therefore find a mode for distributing this effort–my proposal here is either to distribute effort evenly among participants (flatrate model), or to distribute it roughly proportionally to the effort it takes to satisfy everyone’s wishes (“the more you want, the more you have to give”), plus some further details and possible modifications. The decision to regard effort as “abstract human labor”, disregarding the specific useful goods it produces (except that they must of course be useful, i.e. somebody must want them), is therefore the result of an social agreement, it does not happen “behind the back of the producers.”

The important thing, I believe, is that people enter a joint agreement to help each other produce what they need–the details of the agreement (how to distribute effort etc.) will be a matter of experimentation. Feel free to propose better solutions for these details, if you know any.

But please stop ignoring the difference between freely copyable and other things: if you take a copy of Linux, nobody else loses a thing, but if you take the last bicycle, other people lose the possibility to take it. That’s a difference that must be dealt with, merely wishing it away won’t help you.

I don’t think the problem in capitalism is that you don’t get everything for free. On a deep level, the problem that you have to work in order to consume even exists in any society, since only goods that have been produced can be consumed. Thus work (production) is always a necessary precondition for consumption–maybe not for you personally, but definitely for society as a whole. (Of course, the people doing it may perceive this work not as necessity, but as Selbstentfaltung, as something they’re doing voluntarily and with pleasure–that’s the best outcome a mode of production can hope to achieve. But it can only be an outcome, not a precondition for a mode of production. Otherwise needs which, for whatever reasons, cannot be satisfied by pure Selbstentfaltung would simply be neglected, and that wouldn’t be a good thing.)

The problem in capitalism is that production only takes place if there is _profit._ The goal of all capitalist production is to make profit, i.e. to turn money into more money. So, in order to get the things you need, you cannot just “work a little”–no, you have to convince some capitalist that they need you, i.e. that employing you allows them to make more profit than they would make otherwise. Your mere willingness to work is entirely unimportant–you must be useful for some capitalist, too. But capitalists only need a limited number of personnel, much less than there are people on Earth, so that’s the big hurdle which most people fail to overcome (when speaking on a global scale).

The second aspect of this problem is that, as a worker, you don’t sell the results of your labor, you sell your _labor power_ (workers, or would-be workers, are people who don’t have anything to sell than their labor power–most people haven’t). The deal by selling your labor power is: you get paid the value of your labor power (what else?), and the value of your labor power is what you need in order to survive (according to your local community standard of living); in return, you have to give your full labor power (according to the local standard for the length of they work day/week, say, 8 hours a day/40 hours a week). If the production of the goods you need for your standard of living takes 20 hours a week, you still have to work 40 hours–the other 20 hours are the “surplus”–they go to the capitalist, become their profit and are, in fact, the only reason why they employed you in the first place.

In the peer economy, you don’t need to be useful for a capitalist, since you can join, without any preconditions, the general agreement to help each other produce what they need. And since work is simply divided up, there is no surplus–if producing your standard of living takes 20 hours a week, you work 20 hours (assuming a proportional model), if you want a higher standard, you have to work a bit more, say 25 hours, etc. (In fact, your workload would probably be even lower, since in capitalism there is much duplication of work and overload work which would be unnecessary in a peer economy.) The general agreement to help each other produce what they want and to divide the necessary work among those that can contribute means that everybody who can has to work a little, but nobody has to work very much. (And if you can’t contribute at all, then you don’t have to. That’s how I describe it, at least, and I believe that rule to be very important, since the goal of dividing up the labor is to allow everyone to get what they want with the least possible effort, not to exclude anybody.)

That’s the difference between capitalism and the peer economy. For many people in our society, it would mean the difference between life and death, or at least between having to live in misery or being able to live a good life. And for almost everybody else it, it’s the difference between having to work very much (and often with the fear of losing that precious, if unloved job and the advantages it entails) and having to work much less (and without fear of dropping out). And that’s not even speaking of the fact that in the peer economy you’re part of a equal community of co-producers with a common goal (produce for everyone what that like to have), while in capitalism you must subjugate to the command of some boss whose goal (making profit) has nothing to do with you...”

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How do corporations and communities relate?

photo of Michel Bauwens

Michel Bauwens
28th September 2008


Earlier this month, we started processing/summarizing a number of research papers that relate findings about the concrete governance of free software production.

As a reminder, we covered:

- The governance of sponsored open source projects and their communities

- Decision Rights in Open Source

- Modularity in Open Source

- Protective mechanisms in the peer governance of open source communities

Today, we cover the following research paper:

Relationships between open source software companies and communities: Observations from Nordic firms. By Linus Dahlander, Mats G. Magnusson. Research Policy 34 (2005) 481–493

If you want to read more extensive excerpts, go to our wiki page, here are the research questions and the conclusions.

The value of this research papers is that it gives a clear typology of possible relationships, the managerial issues that it poses, and how four Nordic firms have developed distinctive governance responses to engage and retain community engagement.

1. The Research Questions

Linus Dahlander, Mats G. Magnusson:

In firms, the relationships between developers and their employers are regulated by contracts. Consequently, these developers employed by firms receive salary and other types of financial compensation. In OSS projects, anyone is free to join and the relations are informal. Whereas firm-based software creation is normally restricted to relations within the firm, OSS developers are not bound to firms but are dispersed in all parts of the world.

The use of communities created or induced by management appears to be a balancing act, where the influence from the firm’s side, in terms of the degree of control and the strategic direction that is imposed, is a key issue. With too much control it is questionable whether it will be possible to generate the energy, interest and creativity that is at the core of “naturally” emerged communities.With too little control and direction, however, the effects for the firm may be small, or even counterproductive, in case the community’s goals work against the organization. This ought to be even more pronounced in the case of OSS, as management of the firm has no formal influence over the community based on their standing in the firm, and the overall value of openness and sharing prevalent within OSS is apparently conflicting with the firms’ ambitions to generate profit.

This apparent management challenge has directed our study to a number of research questions focusing on the inter-relationship between the firms and the communities, the first one of which is as follows:

Research question 1: What different approaches exist to handle OSS firm–community relationships?

The inter-relationship between OSS firms and communities seems to comprise a set of tensions and inconsistencies in terms of goals, norms and values, potentially leading to different managerial issues. This leads us to the second research question.

Research question 2: What managerial challenges do OSS firms encounter in their community-related activities?”

Finally,we address theway that OSS firms deal with their communities, at an operational level.

Thus, we pose the third research question.

Research question 3: What operational means do OSS firms use in order to handle their relationships to communities?

2. The Conclusions

The above suggests that OSS firms can use symbiotic, commensalistic, or parasitic approaches for inter-relating to their communities. By using a more symbiotic approach, firms have more possibilities to influence the community. However, a symbiotic approach implies the acceptance of dual roles, and the key issue becomes how to balance a distributed knowledge system incorporating both the firm and its community, also acknowledging that the modes of control available differ widely within this system. These firms have much larger possibilities to use various operational means of enforcing subtle control.

Yet, this is not an easy task, as several managerial issues emerge: (1) respecting the norms and values of the OSS communities; (2) using licenses in a suitable way; (3) attracting developers and users; (4) dealing with the resource consumption involved in community development; (5) aligning different interests about the nature of work; and (6) resolving ambiguity about control and ownership.

The commensalistic approach, principally trying to utilize existing communities without inflicting any harm, may at a first glance appear to be easier to handle, but nevertheless holds a number of potential problems. Firms that are not involved to the same extent mainly face the problem of getting acceptance for using the community-developed software in their business activities and avoiding direct conflicts, but have very limited possibilities of influencing the community. Consequently, firms choosing a commensalistic approach will have to develop a capacity to adapt their strategies not only to provide what the customerswant, but also to a significant extent to the development taking place in the communities outside the firm. By not being actively involved in community development, it may be significantly harder to get acceptance for the firms’ commercial use of the communal resources. Hence, there is a greater risk of being perceived as parasitic, leading to the possible deterioration of the relationship.

This typology of approaches to relationships and the underlying managerial issues and operational means of subtle control also have the possibility of explaining the change from one approach to another. It shows that a greater possibility of influencing might result in several benefits, but it also results in a number of managerial issues that we have outlined.

The relationships between firms and communities voluntarily sharing their innovations also have policy implications. The communities analyzed here have evolved due to firm initiation and organizing among peers. People working within the communities voluntarily share their innovations with others, and their achievements are not protected by intellectual property rights (Waguespack and Fleming, 2004). Our observations indicate that firms may also benefit from this, through creating and maintaining relationships with these communities.

The ‘truth’ of intellectual property rights as the answer for spurring economic growth should be taken with great care. The debate in recent years to patent algorithms and business methods related to software has resulted in a heavy debate within Europe, as they discuss the benefits and drawbacks of increasing the possibility to use software patents. It has been noted that strong appropriability regimes may benefit individual firms, but slow the general cumulative advance (Levin et al., 1987). Our paper illustrates that through creating relations with communities firms can create economic impact, which illustrates that firms may benefit from the general advance in communities evolving at a rapid pace. An example of this is the case of MySQL. The firm has in a few years grown to become a major alternative to great software incumbents with millions of installations worldwide. The entire system of activities also includes actors with radically different goals and rationales for existing, and the inherent tensions in this set-up call for new ways of thinking about what a firm should do.

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Book of the Week: Biobazaar, by Janet Hope

photo of Michel Bauwens

Michel Bauwens
28th September 2008


the tinkering networks we see in the software industry will be mirrored in synbio. Further, the skill sets associated with synthetic biology will be as widely dispersed as software programming is today and the tools will be just as inexpensive/ubiquitous.”

- John Robb

How realistically can we expect open source biology?

Consider the following recent quotes from the Washington Post, which show that clearly something is afoot:

If biology is to morph into an engineering discipline, it is going to need similarly standardized parts, Knight said. So he and colleagues have started a collection of hundreds of interchangeable genetic components they call BioBricks, which students and others are already popping into cells like Lego pieces.”

“At the core of synthetic biology’s new ascendance are high-speed DNA synthesizers that can produce very long strands of genetic material from basic chemical building blocks: sugars, nitrogen-based compounds and phosphates. Today a scientist can write a long genetic program on a computer just as a maestro might compose a musical score, then use a synthesizer to convert that digital code into actual DNA.”

The above shows the distinct possibility of a hacker like approach to DNA. But how far could this kind of practice, which must rely on ‘open and free raw material’, be extended to the whole field of biological and pharmaceutical research?

This is the topic of Janet Hope’s new book:

Biobazaar. The Open Source Revolution and Biotechnology. By Janet Hope. Harvard University Press, 2008.

In the introduction, she describes the aims and direction of her research:

I want to explore whether and how key open source principles might be translated into a new context: that of biotechnology and its close industrial relations, pharmaceuticals and agriculture. Open source biotechnology would be a manifestation of the bazaar in a bioscience setting: hence, a “biobazaar.”

The fundamental reason for undertaking this project is the existence of what seems an irresistible analogy between software and molecular biotechnology. Both technologies have enormous potential to help solve some of humanity’s most pressing problems and enrich all of our lives. But their potential will not be realized without further innovation along lines that current industry participants may not yet even be able to imagine. Both industries are highly concentrated: the software industry is characterized by a near monopoly, while the pharmaceutical and agricultural industries, currently the main users of biotechnological innovations, are dominated by oligopolies. Disruptive innovation—the kind that leads to new product types, new industries, and substantial gains in social welfare— threatens the market position of these powerful corporations.

From the perspective of society as a whole, it is therefore a Bad Idea to let industry leaders gain too much control over the innovative process. Yet in both software and biotechnology over the past decade, more and stronger proprietary rights have contributed to a decrease in real competition, allowing large corporations—the beneficiaries of the status quo—to gain a stranglehold on the pace and direction of technological progress.”

She adds:

A key premise of this book is that open source principles of technology development, licensing, and commercial exploitation offer at least a partial solution to the innovation lock-down caused by extensive private control over scientific and technological information within a highly concentrated industry structure. Open source development shows how groups of volunteers can “collaborate on a complex economic project, sustain that collaboration over time, and build something that they give away freely”—technology that can “beat some of the largest and richest business enterprises in the world at their own game.”

Because open source licensing makes use of existing intellectual property laws, open source strategies need not rely on domestic or international law reform. Open source is also highly resistant to the kinds of countermeasures traditionally adopted by monopolists and oligopolists when technological innovation threatens their market dominance. As Steven Weber points out, open source software is no marginal phenomenon, but a “major part of the mainstream information technology economy” that increasingly dominates those aspects that are becoming the leading edge in both market and technological terms.55 It seems natural, then, to ask: Could open source do for biotechnology what it is already doing for software?”

Her book has been well received by the scholars in the field, here’s the appreciation of Steve Webber:

“Life Sciences are set to become the driver of 21st century economic and national competitiveness, much as Information technology was at the end of the 20th century. Janet Hope’s Biobazaar: The Open Source Revolution and Biotechnology takes on a fundamental question that will determine where innovation happens in biotechnology: Who owns what pieces of intellectual property in this system, and what can they do with what they own? Her thoughtful and non-ideological assessment of the problem leads to a powerful analogy with software and the open source model for producing complex knowledge goods. Can an open source style economy in life sciences change the landscape of innovation, and for the better? Hope provides a much-needed, reasoned guide to thinking through that critical question.”

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