Showing posts with label Cooperative Movement. Show all posts
Showing posts with label Cooperative Movement. Show all posts

23 March 2011

BOOKS / Carl Davidson : The Mondragon Cooperatives and 21st Century Socialism


Five books with radical critiques:
The Mondragon Cooperatives
and twenty-first century socialism

By Carl Davidson / The Rag Blog / March 23, 2011

  • From Mondragon to America: Experiments in Community Economic Development by Greg MacLeod (UCCB Press, 1997)
  • The Myth of Mondragon: Cooperatives, Politics and Working-Class Life in a Basque Town by Sharryn Kasmir (State University of New York Press, 1996)
  • Values at Work: Employee Participation Meets Market Pressure at Mondragon by George Cheney (Cornell University Press, 1999)
  • Cooperation Works! How People Are Using Cooperative Action to Rebuild Communities and Revitalize the Economy by E.G. Nadeau and David J. Thompson (Lone Oak Press, 1996)
  • After Capitalism by David Schweickart (Rowman & Littlefield, 2002)
Something important for both socialist theory and working-class alternatives has been steadily growing in Spain’s Basque country over the past 50 years, and is now spreading slowly across Spain, Europe, and the rest of the globe.

It’s an experiment, at once radical and practical, in how the working class can become the masters of their workplaces and surrounding communities, growing steadily and successfully competing with the capitalism of the old order and laying the foundation for something new -- it’s known as the Mondragon Cooperative Corporation (MCC).

Just what that "something new" adds up to is often contested. Some see the experiment as a major new advance in a centuries-old cooperative tradition, while a few go further and see it as a contribution to a new socialism for our time. Some see it both as clever refinement of capitalism and as a reformist diversion likely to fail. And still others see it as a "third way," full of utopian promise simply to be replicated anywhere in whatever way makes sense to those concerned.

The reality of an experiment on the scale of Mondragon, involving more than 100,000 workers in 120 core industrial, service, and educational coops, is necessarily complex. It can contain all these features contending within itself at once.

That’s what makes MCC a fascinating story where the final chapters are still being written. But one thing is clear: it continues to grow and provide a quality of life for its participants that is unique in its moral benefits and above average in its material standards. Hardly any concerned would give up their position in the project today for the options of the society around them, even if they are skeptical or dubious about various aspects of MCC’s current practices or future prospects.

One MCC worker, for example recently expressed some cynicism about the coops. “People once took them seriously, but not anymore,” she remarked. “You mean it doesn’t matter to you whether you work here or at a private company?” she was asked. “Of course it matters,” she replied. “Here I have job security, and here I can vote.”

If I had to single out one of the five books listed above to tell MCC’s story, it would be the first one, From Mondragon to America by Greg MacLeod, even if its title is a little misleading and its facts 15 years out of date. The reason? It goes deeply into the structures and values at the core of MCC, as well as discussing the philosophical thinking of its founder, Father Jose Maria Arizmendiarrieta, or known more simply as Father Arizmendi.


A priest with a philosophy

The story of Mondragon begins with Father Arizmendi’s arrival in the Basque country of Spain in 1941 following the defeat of the Republicans in the Spanish Civil War. The Basques had been a center of resistance to Franco and the area was devastated by the conflict. Most widely known was the bombing of the Basque city of Guernica, immortalized in the mural masterpiece painted by Pablo Picasso. Father Arizmendi himself had fought with the Republicans, was imprisoned, and barely escaped execution.

As a young priest, he was assigned to the Arrasate-Mondragon region, which was suffering from high unemployment and other serious problems in the war’s aftermath. Arrasate is the Basque name for the area, while Mondragon is the Spanish name; in any case, the industrial mountain valley received little or no help from the Franco regime and was the target of ongoing repression against the Basques, with the fascists trying to stamp out their language and culture as well as their political organizations.

In reorganizing his new parish, Arizmendi thus had to find a way for the Basques to help themselves. He started by forming a small technical school, and helped finance his efforts by convincing the local Basques with meager funds to form a small credit union. He also formed sports and other family-related organizations that could still allow people to gather under the legal restrictions of the fascists.

In addition to being an organizer, Arizmendi was also a deep-thinking intellectual -- all the while he was doing a thorough study of Catholic social theory, Marx’s political economy, and the cooperative theories of Robert Owen, the British utopian socialist.

In a few years, armed with these ideas, he selected five graduating students from his technical school and with donations and borrowed funds from the credit union, his team of young workers formed a small cooperative workshop, ULGOR, named from one initial of each of the five students’ names.

It brought in about 20 more workers and started to produce a small but very practical kerosene stoves for cooking and heating. The single-burner stoves were much in demand and the coop thus thrived and grew. Today it’s called FAGOR, and its 8,000 current employee-owners in several divisions produce a wide range of high-quality household appliances sold across the world.

But this small startup in 1956 contained the first secret of MCC’s success -- the three-in-one combination of school, credit union, and factory, all owned and controlled by the workers and the community. Starting a coop factory or workshop alone wouldn’t work; a startup also required a reliable source of credit and a source of skills and innovation.

Typically, an MCC coop is entirely owned by its workers -- one worker, one share, one vote. Worker-owners get a salary that is a draw against their share of the firm’s annual profit, and is adjusted upward or downward at the end of the year. By Spanish cooperative law, a portion of the profits has to be turned over to the local community for schools, parks, and other common projects, The remainder is set aside for the repair and depreciation of plant and equipment, health care and pensions, and emergency reserves, as well as the workers’ salaries.

Technically, MCC worker-owners are thus not wage labor, but associated producers. There is an income spread, according to skill and seniority, but this is set and modified by the workers themselves meeting in an annual assembly. The assembly also elects a governing council, which in turn hires a CEO and management team.

Managers can be removed from their posts but worker-owners cannot be fired. New hires however, can be fired or laid off during their trial period -- about six months. But when their trial period ends, they can buy into the coop. If they don’t have the funds for the value of their share -- today about 3,000 Euros -- it’s lent to them by the coop bank, and they repay in small amounts over a few years. MCC coops typically have relatively flat hierarchies, and a much smaller number of supervisors compared to similar non-coop firms.


The Ten Principles

Father Arizmendi’s most important intellectual contribution to MCC, however, was the wider formulation of this structure into ten governing principles, which are firmly held and practiced throughout MCC. There is some flexibility around the edges, but not much. Here’s a brief description:
  • Open Admission: This means non-discrimination, that all are invited to join the coops -- men or women, Basque or non-Basque, religious or non-religious, or from any political party or nonpartisan.

  • Democratic Organization. The principle of "one worker, one vote" is the core here, but it also entails a wider participatory democracy in the workplace and engagement with the management team.

  • Sovereignty of Labor. This is the underlying core belief describing the overall relation between capital and labor, primarily that labor is the dominant power over capital, at least within the coops, if not fully in the wider local community.

  • Capital as Instrument. This is a corollary of the point above. It defines capital as an instrument or tool to be used, deployed and governed by labor, rather than the other way around.

  • Self-Management. This stresses the importance of training worker-owners not only to better manage their work on the assembly line, but also to train those elected to the governing councils or selected for management teams to have the wider educational background to steer the cooperatives strategically in the wider society and its markets.

  • Pay Solidarity. Here is where the worker-owners themselves determine the spread between the lowest-paid new hires and the top managers, with various skill and seniority levels in between. Originally it was set at 3-to-1, but that was adjusted because it was too difficult to retain good managers. Today the average is 4.5-to-1, compared to 350-to-1 as the average for U.S. firms. The highest single coop’s range is 9-to-1, and only exists at Caja Laboral, MCC’s worker-owned bank.

  • Inter-Cooperation. This encourages the various coops to cooperate with each other, forming common sectoral strategies, or for transferring members among coops when some firms’ orders are temporarily too low to provide enough work.

  • Social Transformation. The coops are not to look inward and operate in isolation from the community around them. They are to make use of cooperative values to help transform the wider society. For many in the Basque Country this means seeing MCC’s growth as developing a progressive economy for Basque national autonomy and independence.

  • Universal Solidarity. The coops are not only to practice solidarity within themselves, but also with the entire labor movement -- and not only in Spain, but across the globe as well. MCC has several projects abroad providing assistance in remote areas of Third World nations.

  • Education. Just as the first coop was preceded by the establishment of a school and the formation of a cadre with a cooperative consciousness, MCC continues to hold education as its core value, seeing knowledge as power -- and the socialization of knowledge as the key to the democratization of power in both the economy and the society.
In shaping these principles, Father Arizmendi also discovered what he believed was a fatal flaw in the cooperative theory of Robert Owen, which was the ability of an Owenite worker-owner to sell his or her share to anyone. This permitted external financiers to buy up the shares of the better firms while starving others.

Thus in MCC, this is forbidden; a retiring worker may "cash out" on leaving the coop, but he or she is not allowed to sell the share to anyone but a new incoming worker, or to the coop itself to hold until it does. This keeps MCC’s capital subordinate to its workers, and is a second secret to its success.

Most of all, these principles have meant that the MCC workers retain control over their own surplus value, using it to provide themselves a modest but above-average standard of living while using their resources for measured and planned growth.

Mondragon has come a long way from ULGOR, the small workshop making the little single-burner kerosene stove. Today MCC unites 122 industrial companies, six financial organizations, 14 retailers (including the Eroski chain with over 200 hypermarkets, supermarkets and convenience stores), plus seven research centers, one university and 14 insurance companies and international trade services. Its total sales in 2009 were 13.9 billion Euros it had a workforce of nearly 100,000 people.

Less than six of the 120 coops have failed over 50 years. In the most recent economic crisis, MCC weathered the storm fairly well. No coop failed, salary reductions were modest, and the only workers laid off were the trial-period new hires. Now things are picking up again. MCC remains a dominant force in the Basque economy, is the leading force in Spain overall, and is now making waves in high-tech manufacturing worldwide.



Cooperativism and trade unionism

What about Mondragon’s wider connections with the Basque and Spanish trade union movement outside the coops? Where do the various parties of the Spanish and Basque left come in?

For some answers to those questions, at least as things were in the mid-1990s, the best treatment is in Sharryn Kasmir’s The Myth of Mondragon. As a sociologist who spent some time in the Basque country, she took great pains to try to discern how workers themselves, inside and outside the coops, viewed MCC.

At bottom, she would agree that the MCC workers, whatever criticisms they may have, would not readily trade places with their counterparts outside. She would also agree that the coops have become a powerful and progressive economic force in the Basque country. But in the end, these "pragmatic" concerns are not hers; she wants to view MCC through the more traditional "ideological" lens of the left.

Kasmir places high priority, for example, on trade union militancy and solidarity and examines and celebrates its history in the area in some detail. The Basque are best known for their high-mountain shepherds but they have a long industrial tradition in the valleys and coastal towns, especially in iron and metalworking.

The workers in these areas -- like the Arrasate-Mondragon Valley -- formed trade unions early on and have a tradition of solidarity across industries and trades, often shaped in a lively night life in bars involving entire families.

Kasmir does an excellent job digging out this history and showing how it continues. She also reveals, however, that some of its traditional expression has dropped off in the areas where the Mondragon Coops are prevalent. The MCC worker-owners, she notes, are viewed by other workers as "working too hard" and spending less time in the bars in political discussion. Moreover, when strikes are called and other workers are asked to strike in solidarity, the MCC workers only offer a token presence, or don’t show up at all.

“Ekintza, the Basque concept of 'taking action,' is a core cultural value,” Kasmir argues. “Basque towns are centers of political activity. In Mondragon, political discussion takes place in bars, demonstrations are frequent, and town walls are covered with posters, murals, and graffiti, making them dynamic arenas for political debate. Far from generating ekintza among workers, however, cooperativism appears to engender apathy.” (p. 195)

Finally, Kasmir gives an example of a small group of young Maoist workers in the ULGOR plant that tried to strike the coop in the 1970s, but failed to win much support. They were expelled from the coop by the other worker-owners, although, after a few years, a good number were brought back in. It was the only strike in all of MCC’s 50-year history, although there have been other conflicts over regionalism and inter-cooperation where a few coops split off.

Kasmir seems to hold to a traditional left view that the task of the left is to organize increasing on-the-job militancy while building one’s strength in the political area with socialist political parties, and to work both the arenas of elections and other mass action campaigns. And as she correctly observes, MCC doesn’t fit this mold.


Class: Looking forward, looking back

What Kasmir glosses over or misunderstands, however, is that there is indeed a critical difference between the workers in MCC coops and workers in other firms. The most important, already mentioned, is that MCC worker-owners are not wage-labor, but associated small producers. Most MCC firms are under 500 workers and many quite smaller.

Second, the MCC firms are not owned by an external force alien to their production process. The managerial strata and the workers' representatives in the governing councils have the same single ownership share and vote as everyone else.

In other words, when workers in a regular firm go on a sympathy strike, they hurt or pressure the interest of external bosses; but when MCC workers go out, they only subtract from their own material interest. They may do so anyway as a matter of solidarity, much as a small store owner may close for the day of a political strike, but the structure of interest is clearly different from that of the wage-laborer.

Likewise, when MCC worker-owners spend more time at work, or attending school or training sessions after work, subtracting from time spent in the bars -- they are contributing directly to their coop’s growth and their own benefit as well, where on the other hand, being forced to work overtime in a regular firm primarily benefits an external owner.

So the interesting question Kasmir leaves unanswered is whether the class position of the MCC worker-owner is a step backward to a petit-bourgeois past or a step forward to a worker-controlled mode of production of a socialist future. Given the overall picture of MCC’s successful growth since the time of her writing, the latter seems the better answer.



Democracy: Representative and participatory

But do the MCC firms’ internal practices still stand as well-functioning examples of direct and participatory democracy in the workplace? Kasmir suggests they are not; that they are simply run by the managers and the rest is pro forma. But her ideological presumptions miss a great deal here that is much better treated in George Cheney’s book, Values at Work: Employee Participation Meets Market Pressure at Mondragon.

Cheney is both more in solidarity with the Mondragon project and in some ways, more critical of it at the same time. His criticisms, however, come largely from within. He holds up MCC’s own values as a mirror to its practice, and then examines the realities.

During a recent study tour of MCC, for example, my group had a session with Fred Freundlich, an American who had been living in the Basque Country for more than a decade and teaching economic theory at MCC’s Mondragon University. We asked for his opinion on how involved the younger MCC workers were with their own governance in the coops.
Frankly, Basque youth aren't all that active inside the coops. They're into Third World global justice issues, environmentalism in general, and Basque nationalism. About the coop managers, I'd say a strong minority, maybe 30 percent, have solid cooperative values at heart, another small minority pays lip service to them, and the rest are somewhere in between. We clearly need a new surge of activism to spread cooperativism beyond the factories.
The highest governing body of each coop, and MCC overall, is its General Assembly or Congress. The average participation is around 70 percent, and attendance is required. (One absence results in a warning; a second results in a fine.) Issues decided are important, such as overall salary spreads, strategic direction of products and the election of leadership.

“The General Assembly of worker-members is the highest authority in each company,” explains Freundlich in his 1998 paper, "MCC: An Introduction." “It must meet at least once a year to address company-wide concerns (though it often meets twice). The General Assembly also elects the company's Board of Directors and a President of the Board for four-year terms, based on the principle of one-member one-vote. The Board appoints the chief executive and must approve his or her choices for division directors.

“A Social Council,” Freundlich continues, “is elected by departments to represent front line workers' interests and to help promote two-way communication between management and workers." Pay solidarity and the distribution of profits to all worker-members, as described previously, are other important cooperative policies.

“While the MCC has its share of workforce controversy and apathy,” he concludes, “and perhaps more today than 30 years ago -- these structures and policies have contributed to fairly high levels of commitment to the business and to the cooperative idea, which in turn, many believe, has provided Mondragon firms with a difficult to measure, but nonetheless real, competitive advantage over its conventional competitors.”

Other studies of various MCC components, such as Eroski, have placed the average quantifiable advantage self-management has given MCC coops over non-MCC firms in the marketplace at 15 percent.

“If one enters a Mondragon factory,” writes George Benello in the magazine Reinventing Anarchy Again, “one of the more obvious features is a European-style coffee bar, occupied by members taking a break. It is emblematic of the work style, which is serious but relaxed. Mondragon productivity is very high -- higher than in its capitalist counterparts. Efficiency, measured as the ratio of utilized resources (capital and labor) to output, is far higher than in comparable capitalist factories.”


Changes, large and small

As for shifting attitudes, Basque society itself has seen major changes over the past 30 years. “Such changes are revealed, for example,” says Cheney, “in the dramatic drop in attendance at Mass in the Basque country, from about 75 percent in 1975 to less than 25 percent today.” (p. 56). What this shows is that the Basques have not been immune to a weakening of traditional ties and the growing secularism and consumerism prevalent in Europe.

Even so, there is still a considerable degree of participation and debate at the base of the MCC coops, even if it doesn’t take the forms or rise to the level those on the governing councils or management teams would like to see. One ongoing debate is over the salary spread between managers and production workers. According to Wikipedia:
At Mondragon, there are agreed-upon wage ratios between the worker-owners who do executive work and those who work in the field or factory and earn a minimum wage. These ratios range from 3:1 to 9:1 in different cooperatives and average 5:1. That is, the general manager of an average Mondragon cooperative earns 5 times as much as the theoretical minimum wage paid in his/her cooperative. This ratio is in reality smaller because there are few Mondragon worker-owners that earn minimum wages, their jobs being somewhat specialized and classified at higher wage levels.[10]

Although the ratio for each cooperative varies, it is worker-owners within that cooperative who decide through a democratic vote what these ratios should be. Thus, if a general manager of a cooperative has a ratio of 9:1, it is because its worker-owners decided it was a fair ratio to maintain.[10]

In general, wages at Mondragon, as compared to similar jobs in local industries, are 30% or less at the management levels and equivalent at the middle management, technical, and professional levels. As a result, Mondragon worker-owners at the lower wage levels earn an average of 13% higher wages than workers in similar businesses. In addition, the ratios are further diminished because Spain uses a progressive tax rate, so those with higher wages pay higher taxes.[10]
Another key tension and debate arose in the 1990s, when Mondragon transformed itself from a federation of coops loosely connected through their "second degree" coops -- the bank, the social insurance agencies, the university and research institutes -- into MCC with its "sectoral" structures -- industrial, financial, retail distribution, and knowledge. The more centralized and unified structure enabled Mondragon’s management teams to develop and pursue common strategies to better compete collectively with their rivals in the marketplace.

While this relatively greater degree of centralization proved very successful, it also increased market pressures on the individual coops in the form of intensity of work and speed of innovation. "Finding the balance," explains Cheney, is the key term used to resolve differences.


Prospects for coops in the U.S.

Can an experiment like Mondragon find fertile ground in the U.S.? This is a topic addressed in Cooperation Works! How People Are Using Cooperatives to Rebuild Communities and Revitalize the Economy by E.G. Nadeau and David J. Thompson. This work offers a survey of some 50 cooperative ventures in 12 different areas of the U.S. society, both historical and current -- including agriculture, housing, business purchasing coops, credit unions, social services, and power utilities -- as well as worker-owned industrial coops.

The authors reveal two key points. The first is that cooperatives have a long, rich, and varied history across the U.S, ranging from wheat farmers banding together to manufacture and market their own pasta products, to home health care providers building their own company to provide decent wages and benefits in an occupation that often suffers from poor conditions.

The second is that none of these 50 case studies, successful or unsuccessful, has followed the Mondragon model of a three-in-one combination of school, credit union, and factory -- even though in a number of areas these three components exist nearby each other. (The book’s appendix lists the top 100 coops in the U.S., which is quite useful.)

That doesn’t mean some of these coop ventures aren’t doing well or breaking new ground. The Cooperative Home Care Associates, based in The Bronx, New York, has grown to include more than 1,600 worker-owners, and has vastly improved the lives of the mainly Black and Latino women workers involved.

“By transforming part-time home care jobs into full-time positions,” states board member Kim Alleyne,
CHCA differentiates itself from other firms in New York City's home care industry. Specifically, we invest significant capacity in scheduling our home care workers for at least 30 hours each week... We also allocate 80 percent of our total revenue to the wage and fringe benefits costs of our home care workers -- including a comprehensive health and dental insurance benefit that does not require a financial contribution from employees.

We also offer our home care continuing education with many opportunities to accumulate assets, including worker-ownership, through which employees can accumulate a $1,000 equity stake in CHCA and receive dividends based on our annual profits, an employer-contribution to their 401(k) account in profitable years; and as an alternative to predatory payday loans, CHCA offers no-interest loans that average $250. We also encourage workers to create savings and checking accounts, instead of relying on expensive check cashing services.
For another interesting example, one can look to California’s Bay Area. Here Cheeseboard Pizza and five other bakeries have formed a networked cooperative of Arizmendi Bakeries. With some 200 worker-owners, they produce baked goods combined with retail eateries that keep winning prizes for the best food and best places to eat in the area. Even though the scale is small compared to MCC in Spain, they also include in their network one "second degree" coop that helps them all with financial services.

In North Carolina, however, a project called the Center for Community Self-Help, started by Martin Eakes and Bonnie Wright, highlighted a core problem. They retrained workers displaced by plant shutdowns, and hoped to help them form coops. Cooperation Works! explains:
Eakes and Wright discovered that the engine that gave Mondragon its power was missing in North Carolina and was stalling the development of worker coops. That element was access to capital. For the Mondragon Cooperatives, the Caja Laboral (or "Workers Bank") furnished the necessary capital to launch successful ventures. Thus Eakes and Wright concluded their next step was to create a Caja for North Carolina.
So that’s exactly what the couple did. Starting with a bake sale, within three years they formed the Self-Help Credit Union with several million dollars in deposits from area churches and government grants. In another seven years, this had launched new businesses with some 4,000 jobs and 2,000 child care spaces.

Cleveland, Ohio has a similar story. For years the Cleveland Foundation and other nonprofits had been repeatedly funding job training programs for the long-term unemployed in low-income neighborhoods, only to find that their newly certified workers still couldn’t find employment. Finally, a core group of funders and allies made the trek to Mondragon, and they were inspired on their return to form the Evergreen Cooperatives, with local colleges serving as schools and the foundations serving as sources of startup capital.

Three businesses are now underway: Evergreen Cooperative Laundry, an industrial-scale operation doing laundry for major medical centers nearby; Ohio Cooperative Solar, which leases urban business rooftops and installs solar arrays, providing electric power to the region’s grid; and Green City Growers, an industrial-scale urban agriculture venture producing fresh produce for local markets and restaurants. A dozen more coop businesses are on the drawing boards.

Another project, in Chicago decided to follow Father Arizmendi’s model closely, and started with the design and organization of a new public school in a low-income neighborhood, Austin Polytechnical Academy. With ideas of worker participation and worker ownership built into the school’s mission and curriculum, it will graduate its first class of students with high-tech manufacturing skills in 2011. The school was developed with partners from area trade unions and some 20 high-tech manufacturing firms. A number of the students have gone to Mondragon on study tours.



Agreement with the steelworkers

What gave a national focus to all these efforts was a recent decision by the United Steel Workers, one of the largest industrial unions in the U.S, to declare a formal partnership with MCC to try to establish worker-owned enterprises in depressed Rust Belt regions. This was soon followed by a similar partnership declaration between MCC and the City of Richmond in the Bay Area to launch a similar effort.

The U.S., of course, continues to face dire economic conditions. Bank credit is difficult to obtain and unemployment is near 10 percent. Government at every level, blocked by a neoliberal budget-cutting resurgence, is slashing funds for community and small business development in favor of tax breaks for the super-rich.

This manufactured austerity is a two-edged sword as far as coops are concerned. One edge is that there is little help coming from government, which makes new ventures very tough. The other edge is that the solidarity economy, of which MCC is a mother lode of ideas and experience, emerges precisely when government fails and people have only each other to turn to for mutual aid. The harsh conditions become a spur to radical experiments and strategies for structural change.

This is where the last of these five books takes center stage, David Schweickart’s After Capitalism. In this short but lucid book, Schweickart draws on his earlier studies of workers' control in Yugoslavia and his own experiences in Mondragon and elsewhere, and raises all of these to a wider working hypothesis for a new socialism for the 21st century. He calls his effort "successor-system theory" and names its project "Economic Democracy."

The core idea is that the workers themselves democratically elect the managers of their firms, which are either leased from the government collectively or owned cooperatively outright. They also share the wealth they create by sharing the profits among themselves. They make their money the old-fashioned way: by finding consumer needs, meeting those needs with decent products, and selling them to satisfied customers at reasonable prices.

We can see the Mondragon model here, but painted on a much wider canvas of an entire nation’s economy. Schweickart’s theory is one of the main variants of what is called "worker controlled market socialism," and his task in this work is not so much to tell us how to get there, but to show how it can work once we do get there.

The heart of his argument rests on dividing markets into three -- capital markets, labor markets, and markets in goods and services. Capital markets he would abolish or at least severely restrict by government buyouts or takeovers of major banks and corporations in a time of crisis and turning them into public asset funds.

Labor markets he would drastically change or restrict by vastly reducing wage labor, turning most workers into owners or leaseholders of their factories. Workers each have one equal vote, and elect their managers.

Markets in goods and services, however, would remain, although regulated for ecological sustainability and other matters related to the common good.


Mondragon as a bridge to socialism

Even if the Mondragon cooperators themselves don’t speak directly of wider socialist theory, Schweickart does it for them in this work. “The Mondragon complex did not develop as a purely pragmatic response to local conditions,” he explains.
Arizmendiarrieta was deeply concerned about social justice and explicitly critical of capitalism, basing his critique on progressive Catholic social doctrine, the socialist tradition, and the philosophy of "personalism" developed by Monier, Maritain, and other French Catholic philosophers. He was critical of Soviet state socialism and certain elements of the cooperative movement itself. He was particularly sensitive to the danger of a cooperative becoming simply a "collective egoist," concerned only with the well-being of its membership.
Schweickart goes on to note the problems of conflict, tension, and abstention from participation within the MCC coops mentioned by both Kasmir and Cheney. But he draws this conclusion:
The presence of worker alienation and of certain practices that cut against the grain of Arizmendiarrieta’s vision should not blind us to two striking lessons that can be drawn from the economic success of Mondragon. First, enterprises, even when highly sophisticated, can be structured democratically without any loss of efficiency. Even a large enterprise, comparable in size to a multinational corporation, can be given a democratic structure.

Second, an efficient and economically dynamic sector can flourish without capitalists. Capitalists do not manage the Mondragon cooperatives. Capitalists do not provide entrepreneurial talent. Capitalists do not supply the capital for the development of new enterprises or the expansion of existing ones. But these three functions -- managing enterprises, engaging in entrepreneurial activities, and supplying capital -- are the only functions the capitalist class has ever performed. The Mondragon record strongly suggests that we don’t need capitalists anymore -- which, of course, is the central thesis of this book.
What Schweickart is doing, of course, is dispensing with all the usual arguments capitalist apologists circulate among average workers as to why socialism can’t work. In addition to the intellectual arguments, he simply points to Mondragon, which continues to move forward as the living example of another path.

In this sense, what the MCC worker-owners have established is a bridge to a small fortress that serves as a foothold in the future, a powerful example of one not-so-small victory in a Gramscian "war of position."

To a certain extent, many of the MCC workers and managers would agree. MCC itself is officially "nonpartisan," meaning that it’s not tied to any particular Basque or Spanish political party.

But this does not mean "anti-partisan." MCC works with a number of socialist and Basque nationalist parties and officials to build up the economy and educational planning infrastructure of Euskadi, the Basque name for their "Basque Country," for which they are working for a high degree of regional autonomy, if not national independence.

In the MCC coops, the workers belong to a range of socialist, communist, and Basque nationalist groups ranging from left to center. There have been sharp differences between socialists and some of the more militant nationalist groups in the recent past, but today, the trend is for a wider popular unity and a cessation of any violence.

Not all cooperatives are on the left, of course, and not only in Spain, but elsewhere, including in the U.S. Nor are those that do have progressive politics at their core the only examples of strongholds that can be won in the "war of position."

There are many other "strong points" in need of multiplying and growing -- progressive trade unions and labor councils, community-driven schools and civic organizations and coalitions, and, naturally, progressive political organizations and parties rooted in working-class communities. These are all organizational instruments for a range of tactics that will be required in different phases and a variety of fronts in class struggle and popular democratic campaigns.

What Mondragon has done for us, however, is to make a major breakthrough in both theory and practice and bring it to scale as a powerful example of what can begin to happen when "labor is sovereign" in a new socialism for a new century.

[Carl Davidson is a national co-chair of the Committees of Correspondence for Democracy and Socialism, a national board member of the Solidarity Economy Network, and a member of Steelworker Associates. He is also the co-author, with Jerry Harris, of CyberRadicalism: A New Left for a Global Age. His email is carld717@gmail, and he is available to speak on Mondragon.]The Rag Blog

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06 October 2010

Carl Davidson : Mondragon Diaries V: Innovation and Transformation

Image from Mondragon website.

Mondragon Diaries, Day Five
Innovation and transformation
towards a third wave future


By Carl Davidson / The Rag Blog / October 6, 2010
“The world has not been given to us simply to contemplate it, but to transform it. And this transformation is accomplished not only with our manual work, but first with ideas and action plans.” -- Father Jose Maria Arizmendiarrieta, founder of the Mondragon Coops
[This is the fourth of a five-part series by Carl Davidson about the Mondragon Cooperative Corporation, a 50-year-old network of nearly 120 factories and agencies, involving nearly 100,000 workers -- centered in the the Basque Country but now spanning the globe. Go here for the series so far.]

BASQUE COUNTRY, Spain -- Today the Mondragon valley is misty and grey, with small clouds drifting close to the valley floor between the mountain peaks. It's somewhat otherworldly, I think to myself on the bus ride up the slopes, almost like a scene from “The Lord of the Rings.”

Today is also our last day, and we're full of mixed feelings. Melancholy that our week-long seminar is coming to a close and that the new friends we've made will scatter. But there's also excitement that we'll soon be back home and able to share it all with our communities.

Our first stop is another component allied with Mongragon University called SAIOLAN. It's an incubator project for helping to launch new coops and high-tech businesses.

We're greeted in a classroom by a young woman from Mexico, Isabel Uriberen Tesia, who is also our presenter. She wastes no time bringing up her powerpoint on the screen and getting into the topic.

“Our aim is generating employment, creating new jobs,” she says. “our purpose is to do this by developing new business projects and training new entrepreneurs.”

A few years back, as the economic crisis was developing, nearly 60 percent of the students graduating in the Basque Country were having a hard time finding employment. The government, the MCC coops, and other businesses, as well as the students themselves, all turned to SAIOLAN to help launch new enterprises that could put young people to work.

“There are five levels in the training of entrepreneurs,” Isabel explained. “First is motivation. Second is finding opportunities. Third is defining a suitable project for the student, in tune with his or her interests and ideas. Once you get past these three, the next two, planning the startup and launching what you have developed, also involves finding resources, such as grants and loans, that can get the new businesses operating.”

What kind of businesses were being started? One involved processing plants for cleaning waste water in a new and better way, another was called "micro-manufacturing," producing very small components accurately, quite a few were new software products. One from FAGOR, the large home appliance worker-cooperative, involved finding new uses for stainless steel, including exterior products, like one-piece transit stop structures.

Some in our group were concerned that many of the new startups were simply new businesses rather than also coops. This was 80 percent, or 138 out of 172 new small enterprises over the last few years, with 2,281 new employees. SAIOLAN didn't seem worried. “It's their choice,” was the explanation. “Some of them will later transform into coops, and in any case, it's good to create new employment for our entire Basque community, not just the minority in cooperatives.”

We got deeper into the subject in our next session. It was further up the mountainside at Otlalora, and we had as our resource person Jesus Herrasti, one of the senior MCC leaders, the head of the “Innovation Group," who had been with Mondragon for 48 years.


After laying out some of the basic features of innovation -- infrastructure, science, technology, strategic planning -- Herrasti made it much more real by talking about a fundamental conflict facing all manufacturing businesses, not just MCC.
Take FAGOR, our home appliance manufacturing coop. It's a mature business. We can continue to compete by making some additional improvements in quality, or cutting our profit margins. But in the end, it's going to be very hard to compete with similar products produced in Asia. We should keep at it as long as we can operate in the black and our worker-owners can maintain their standards, but where, really, is our new growth potential?
He named three broad areas -- renewable energy, health and eldercare, and information technology. It got even more interesting to me as he became more specific about new product lines -- fuel cells, wind turbines, photovoltaics, embedded software, wireless, ambient intelligence, and bioprocessing in supercomputers. He was presenting the shift from second wave manufacturing to the high-design and high-touch products of a third wave future in a knowledge economy, and he had 200 people working full time on coming up with new ideas and plans.

I asked a question.
Have you had any inquiries from those countries trying to define a new 21st century socialism, in whatever way, such as Venezuela, Cuba, China, Vietnam, or even South Africa, on how they might use Mondragon's ideas and services? Do you think you have something to offer here?
“Yes and no,” was the cautious answer.
We get queries from all of them. We've been to China and other places, and there is some genuine interest, to a point. But since spreading knowledge and worker's power at the workplace also often runs against the clinging to control by bureaucrats, socialist or otherwise, the interest often comes to a dead end. But it's not always the case, and we keep working on doing what we can.
He went on to discuss the problems of cultural differences.
We Basques are often risk-adverse when it comes to business, unlike Americans. We often avoid risks when we shouldn't. On another hand, when we talk with Mexican workers about taking over and owning the firms we start there for themselves, and where they elected the leadership, they simply don't believe us. They want to know where "the trick" is hidden, since businesses, in their culture, are always owned by bosses, never by workers. There is no trust, at least trust with us, that it can be otherwise.
So what are the basic things needed to start worker-cooperatives in our countries, asked one of our group?
First the workers themselves must FEEL THE NEED. Without that, it's hard to get anywhere. Second there must be a culture of TRUST, since you are sharing money, sharing risks, and supporting new leaders. Third, is to BE REALISTIC. You need successes, especially in the beginning. Too many early mistakes, and you are finished. Finally, you need friends and collaborators -- but pick them carefully!
This had us inspired and buzzing all through lunch, another amazing sampling of Basque cuisine. I had steamed artichokes with a delicious sauce and braised pork, finished off with dark strong coffee and ice cream with slivers of dark chocolate.

The afternoon session featured a presentation of one of the students in MUNDUKIDE, a small overseas assistance program with the people of Mozambique, Brazil, Cub, and a few other countries. One discussion was largely about microloans, which weren't working very well, and another about road-building, which was rather successful.

Our final session was with Fred Freundlich, the American professor, who was a veteran of the movements against plant closings in the U.S. a few decades back, who now was a faculty member at Mondragon University. Since he understood both our realities and those at MCC, he could handle any outstanding questions.

There were a lot of them. The first was how much was MCC's success a result of factors unique to the Basque Country. “It's somewhat important, but not decisive,” Fred answered.
One very important factor was it started at just the right time. If it had started 10 years earlier, conditions may have been too harsh. But the first coops were launched at a time when people really needed a lot of things, and finally had a little savings to spend. Many businesses grew in this period. If it started 10 years later, MCC may have had much stronger competition, and may not have gotten off the ground so well.
I asked what was the response of the socialist and communist groups in the Basque County and Spain to MCC? “Mixed and confused,” was the answer. Some thought it utopian. Others dismissed it as a diversion, as making workers into capitalists. "But they still keep sending delegations for visits, and going away impressed," Fred noted. The Basque left was also fragmented over violence, when ETA, the Basque armed resistance group, assassinated a former leader of one of the MCC coops who was also a socialist official.

After a thoughtful pause, Fred made a point that applied to the U.S. Left as well. “There's two trends in the left,” he explained. “Those who think long and hard about business and what to do with it. And those who mainly like to discuss left ideas.” The implication was that the two trends most often didn't overlap, even if it was wise to do so, both tactically and strategically.

Mikel brought the session to an end by asking us all for our new ideas on how we might implement what we had learned, and possible projects for doing so. There were all sorts of plans in the works on the part of our group, from networking food coops, to producing new green products, to making a new film about Mondragon for a U.S audience.

We clearly all had our imaginations fired up by the experience. Mikel gave us each a certificate for completing a 40-hour study seminar, which was a lovely touch. But the truth was that most of us would need no reminder hanging on our walls. What we had learned here had changed us, in some ways deeply, and we would be looking at people and projects in new ways for some time to come.

[Carl Davidson is a national co-chair of the Committees of Correspondence for Democracy and Socialism, a national board member of Solidarity Economy Network, and a local Beaver County, PA member of Steelworkers Associates. His website is Keep on Keepin' On, where this series also appears. Davidson is also available to speak on the topic. Contact him at carld717@gmail.com. For more info on these tours, go here.]

Also see:The Rag Blog

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Robert Jensen : The Cooperative Alternative

Art by Joseph Bau / Fearless Fathers.

The cooperative movement:
Doing business as if people mattered


By Robert Jensen / The Rag Blog / October 6, 2010

There’s no shortage of political blather in this year’s mid-term election campaigns, but most of us yearn for substantive discussion of the serious problems we face. What should the politicians be discussing? The University of Texas at Austin asked faculty members who teach about politics “to analyze, examine and provide their perspectives” on key political issues for the university’s website, with new essays posted each weekday throughout the campaign season.

I contributed three short essays that raise critical questions about economics, empire, and energy that are routinely ignored by most politicians. Here is one of them.


When politicians talk economics these days, they argue a lot about the budget deficit. That’s crucial to our economic future, but in the contemporary workplace there’s an equally threatening problem -- the democracy deficit.

In an economy dominated by corporations, most people spend their work lives in hierarchical settings in which they have no chance to participate in the decisions that most affect their lives. The typical business structure is, in fact, authoritarian -- owners and managers give orders, and workers follow them. Those in charge would like us to believe that’s the only way to organize an economy, but the cooperative movement has a different vision.

Cooperative businesses that are owned and operated by workers offer an exciting alternative to the top-down organization of most businesses. In a time of crisis, when we desperately need new ways of thinking about how to organize our economic activity, cooperatives deserve more attention.

First, the many successful cooperatives remind us that we ordinary people are quite capable of running our own lives. While we endorse democracy in the political arena, many assume it’s impossible at work. Cooperatives prove that wrong, not only by producing goods and services but by enriching the lives of the workers through a commitment to shared decision-making and responsibility.

Second, cooperatives think not only about profits but about the health of the community and natural world; they’re more socially and ecologically responsible. This is reflected in cooperatives’ concern for the “triple bottom line” -- not only profits, but people and the planet.

The U.S. government’s response to the financial meltdown has included some disastrous decisions (bailing out banks to protect wealthy shareholders instead of nationalizing banks to protect ordinary people) and some policies that have helped but are inadequate (the stimulus program). But the underlying problem is that policymakers assume that there is no alternative to a corporate-dominated system, leading to “solutions” that leave us stuck with failed business-as-usual approaches.

It’s crazy to trust in economic structures that have brought us to the brink of economic collapse. But even in more “prosperous” times, modern corporations undermine democracy, weaken real community, and degrade the ecosystem. New thinking is urgently needed. Politicians who talk about an “ownership society” typically promote individual ownership of a tiny sliver of an economy still dominated by authoritarian corporate giants. An ownership society defined by cooperative institutions would be a game-changer.

None of this is hypothetical -- there are hundreds of flourishing cooperative businesses in the United States. The United States Federation of Worker Cooperatives, provides excellent information and inspiring stories. In Austin, a cooperative-incubator group, Third Coast Workers for Cooperation, offers training and support for people interested in creating democratic workplaces.

Putting our faith in institutions that have become too big to fail has failed. Institutions that are too greedy to defend can’t be defended. Cooperative businesses aren’t a magical solution to the critical economic problems we face, but a national economic policy that used fiscal and tax policies to support cooperatives would be an important step on a different path.

[Robert Jensen is a journalism professor at the University of Texas at Austin and board member of the Third Coast Activist Resource Center in Austin. He is the author of All My Bones Shake: Seeking a Progressive Path to the Prophetic Voice, (Soft Skull Press, 2009); Getting Off: Pornography and the End of Masculinity (South End Press, 2007); The Heart of Whiteness: Confronting Race, Racism and White Privilege(City Lights, 2005); Citizens of the Empire: The Struggle to Claim Our Humanity (City Lights, 2004); and Writing Dissent: Taking Radical Ideas from the Margins to the Mainstream (Peter Lang, 2002). Jensen is also co-producer of the documentary film Abe Osheroff: One Foot in the Grave, the Other Still Dancing, which chronicles the life and philosophy of the longtime radical activist. Robert Jensen can be reached at rjensen@uts.cc.utexas.edu.]
  • Also see Carl Davidson's "Mondragon Diaries" series on The Rag Blog -- about the 50-year old Mondragon Cooperative based in the Basque Country of Spain.
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27 September 2010

Carl Davidson : Mondragon Diaries III: Visions of the Future

Otalora: This old blockhouse fortress now houses a worker-owned credit union. Image from Udalatx / Flickr.

Mondragon Diaries, Day Three
Visions of the future, ties to the past:
Tools for shaping organization for tomorrow

By Carl Davidson / The Rag Blog / September 27, 2010

[This is the third of a five-part series by Carl Davidson about the Mondragon Cooperative Corporation, a 50-year-old network of nearly 120 factories and agencies, involving nearly 100,000 workers -- centered in the the Basque Country but now spanning the globe. Go here for the series so far.]

BASQUE COUNTRY, Spain -- This morning our bus again takes us far up the winding mountain road to the 15th Century blockhouse fortress now transformed into a conference center. I've since found out it's called Otalora, after an old noble family that owned the whole area reaching back 600 years. In those days, in was an armed way station on a trade route between the center of Spain and the sea, and the Otalora family extracted heavy taxes on the traffic going both ways.

This led to wars among the noble families over these spoils, and at one point the tall armed tower on one end of the building was destroyed by a rival. In the years that followed, to bring a degree of stability, all the armed towers on other castles in the area
were also lopped off . This imagery brought smiles to the faces of the women in our group, who caught the symbolic significance immediately, even if the men took a moment or two to catch up with the laughter.

In any case, Otalora is now owned by Caja Laboral, the worker-owned credit union of the Mondragon Cooperative Corporation, which operates on the scale of a major bank with outlets across the country, in addition to serving as a source of finance to all the MCC coops, that dominate its governing council. The other voice on the council is a bloc of representatives from the Caja Laboral staff workers themselves. A few farmers use the land for dairy cows and sheep, but otherwise, the whole area looks like a well-tended national park.

After the Otalora story, our more serious topic this morning is the wider range of the cooperative movement, both in the Basque Country and Spain. Mikel introduces Lorea Soldevilla, a young worker-owner from KONFEKOOP, the Basque Cooperative Confederation. MCC is part of this, but it turns out that there are many more cooperatives in the region that are not from MCC. From the group's acronym, I also learn that the Basque language does not use the letter "C."

There are currently 755 cooperatives in the Basque Country, she explains, and only 80 of them are the worker-owned MCC coops. There are a total of 537,000 members of all the coops, but only 54,919 are worker members, and 37,860 of these are the MCC worker-owners.

Where did these other nearly 500,000 come from? Lorea brings up a spreadsheet on a screen to show us that there are all kinds of cooperatives and members. Eroski, the supermarket chain, for instance, has consumer members as well as worker members, and there are other consumer coops. There are also producer coops, such a dairy farms where the farm owners are members, but not necessarily the farm workers. There are also marketing coops, transport coops of independent truckers, cooperative schools, food coops, and housing coops.

At the center of KONFEKOOP's work as a confederation is the concept of "inter-cooperation," the idea that coops should help each other. "Inter-Coop," as it's called, has several organized components. ELKAR-LAN helps people with the legal and organizational consulting needed to form new coops. ELKAR-IKERTIGIA is a volunteer policy and research center. PromoKoop helps find new markets and helps coops enter new markets. OLINARRI helps to link coops to the wider social economy.

But there is another vital function as well. MCC is nonpartisan; it's not tied to any political party, and the same is true of many of the others. Still, they need to influence and work with the Basque and Spanish governments, especially on matters of law and regulations that can help or hinder them.

Konfekoop enables them to do this, both as a lobbying arm and by directly having its people serve on government bodies and study groups. It's a way of working with favorable politicians of all parties without directly being members of any of them. The Basque government, for its part, is largely favorable to MCC and the other coops, since they have helped to bring a higher-than-average degree of prosperity to the region.

We all gave Lorea a round of applause for expanding our horizons. It was now time for our caffeine break, and we all headed downstairs to a room in the old castle that was now a coffee bar. There were three workers getting us expressos and cafe con leches, so I asked, 'Are you guys worker-owners of this fancy Caja Cabral enterprise too? I asked. “Of course,” was the answer, as if it was the most natural thing in the world.


As we returned for the next round, I heard a few groans about the title: "The Corporate Management Model." Some gritted their teeth for a technical lecture; a few said, “can't they find a better word than 'corporate'?” “Give it a chance,” I replied. “'Corporation' doesn't always translate with the same meaning we put on it.”

Mikel introduced Jose Luis Lafuente, whose title, accordingly, was "Director of Corporate Management Model." Jose started off by explaining that their model was developed over decades, going back to Father Arizmendi's Ten Principles, but in a 1990's update, was also deeply rooted in the TQM outlook, or Total Quality Management. Again a few eyes were rolled, because a version of TQM was used against U.S trade unions back in those days, and a few around the table remembered it.

But as Jose continued expanding on MCC's approach, which put the core values of worker ownership and democracy at the center of an ever-widening set of values and organizational principles, the mood in the room began to change. He then took each component, and in a wonderful set of inter-linked graphic images, he unfolded a number of powerful tools that could be adapted to any progressive organization to build its strength, grow its size, and achieve its goals.

He posted "people in cooperation" as the first starting circle, then went on to connect that concept to the necessity of participatory organization, wage solidarity, social transformation, and many others. By the time he was done, everyone was wide-eyed. “So what do you think?” he asked. “I love it,” I blurted out. “But I'm going to adapt it to building my socialist and other political organizations.”

He laughed, but in the front of my mind was the conclusion that I had a powerful, modernized framework to update and supplement Lenin's "What Is To Be Done" and a number of other classics on organization.

It was time for lunch, and all the tables were buzzing with excitement over the presentation. Jose sat across from me, but he immediately asked about other matters. “We made an agreement with the U.S. Steelworkers about a year ago to form some worker coops in the U.S. How's it going?”

“From what I know,” I replied, “they want to proceed with caution, finding a few profitable firms to buy up and then transform into coops. Plus a lot of their members had bad experiences in the past with Employee Stock Ownership Plans or ESOPs, and they have an educational task to show how the MCC model is not at all the same as ESOPs.

He countered that it was often easier to form a worker coop as a new startup, but he understood my points. He went on to speak highly of GAMESA, the Spanish wind turbine outfit that had opened up three new plants in Pennsylvania in cooperation with the USW. GAMESA got along fairly well with MCC, even though it wasn't a coop, but simply a high-road green capitalist firm.

After lunch, we boarded our bus and headed back down the mountainside to the town of Assarte-Mondragon. We were next visiting IKERLAN, one of MCC's 13 Research and Development cooperatives. It was the first and the largest, and had a number of research lines. It included 209 full-time research scientists as worker-owners, and another 54 trainees.

“Effective Innovation at the service of our company clients” was how Maria, our presenter, summed up their mission. She went on to describe energy saving power stations, micro-needles for bio-tech medicine, new computer components for smart electrical grids, touch screen control panels for home automation, and so on. “Less energy, with lighter materials at lower costs” is a common thread, she added.

Again I was impressed by seeing the advanced productive forces, created by high design, that would be critical to solving problems like the climate change crisis. One of our team, however, asked an interesting question: “Does serving your clients mean working on nuclear weapons or other military instruments?” No, she said firmly, we turn these down. “Is that written down somewhere?” She wasn't sure, but added that with their values, “We would simply not think of doing things like that.”

The comment served as a transition to the last part of our day, a 40-minute bus ride even higher into the mountains. We were headed to a Franciscan monastery with a new secular institution, BAKETIK, the Basque Peace Center of Aranzazu, far above the small town of Onati.

Basque Country denizens. Image from Epicurean Ways.

The ride itself was a joy, with forest broken up by high mountain meadows with dairy cattle and, once you got higher, the sheep the Basques are known for raising. The cathedral at the top was a powerful piece of modern architecture, one you had to walk down through cut stone to enter.

The peace center itself had taken on a tough task. There were hundreds of undocumented refugee children, mainly from bloody civil conflicts in Africa, who had wound up on the streets of Spain, homeless. Many were brought here, and paired with volunteer "big brothers" and "big sisters" to help them regain trust and their own physical and mental health. It took patience, but it served the children well.

On the way back we stopped for an hour in Onati, known for good chocolate stores. It was true, as I picked up a large bar of truffle-flavored 80% cacao dark for only two Euros. But as I strolled through the town square at evening, I noticed something of far greater value. The town's working-class families were sitting in the town square, drinking beer and coffee, engaged in conversation. Children had the run of the streets, playing games and riding bikes -- and there wasn't a bevy of police cars to be seen. It was a place of community and solidarity, where people still enjoyed the simple company of one another and the smaller pleasures of life.

[Carl Davidson is a national co-chair of the Committees of Correspondence for Democracy and Socialism, a national board member of Solidarity Economy Network, and a local Beaver County, PA member of Steelworkers Associates. His website is Keep on Keepin' On, where this series also appears. Davidson is also available to speak on the topic. Contact him at carld717@gmail.com. For more info on these tours, go here.]

Also see:The Rag Blog

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03 July 2009

Robert Jensen : Beyond Independence: When We Are Most Free

Photo by ericagirlwonder.

Beyond independence:
We are most free when we are most bound to others


By Robert Jensen / The Rag Blog / July 3, 2009

Power is typically approached as a question of dominance and submission. Power is marked by the ability to impose or the ability to resist that imposition. This is what some have called “power-over,”[1] which assumes a zero-sum game in which individuals are always in competition for that power -- someone dominates and someone submits.

In such a world, one can use this kind of power with varying levels of responsibility to others, but in such a world it is inevitable that power routinely will be used unjustly. Because there is always the threat that some other person or group can grab the power, these kinds of systems will encourage people to seek always more power.

This is readily evident, for example, in the emergence of the United States as the dominant power after World War II. Even though it was clear the United States could have lived relatively secure in the world with its considerable wealth and extensive resources, that status was instead a source of anxiety in a power-over world, as seen in this conclusion of the State Department’s Policy Planning Staff in 1947: “To seek less than preponderant power would be to opt for defeat. Preponderant power must be the object of U.S. policy.”[2]

That’s the logic of power-over: One either dominates or eventually is dominated. The potential of a challenge from below means that no amount of power is enough; more always must be accumulated to ward off threats. Along the way, people pursuing these goals tend to justify the concentration of power as in the best interests of all; the enlightened ones with the power tell us that they will use it benevolently in the interests not just of themselves but also those less fortunate.

All of human history argues against having faith in this power-seeking, with its accompanying hubris and self-delusion. But history is conveniently ignored by the powerful as they congratulate themselves on their vision and fortitude, while at the same time they work feverishly to propagandize the powerless, lest those below see the shell game for what it is and rebel.

It’s tempting to say that this power-over exercised on earth is illusory, that real power rests with God or on some other plane of existence. The problem, of course, is that the suffering caused by the exercise of power-over is not illusory and does not exist at some other level. It is felt by people and other living things in the here-and-now.

The need to challenge power-seeking, domination, and injustice is not otherworldly but of this world. Still, it is not merely rhetorical to mark that power-over is dead power. It is ultimately the power of death, and also is a power that comes only to those whose souls are dead. The poet Muriel Rukeyser expressed clearly the nature of this power and why we should reject it:
Dead power is everywhere among us -- in the forest, chopping down the songs; at night in the industrial landscape, wasting and stiffening a new life; in the streets of the city, throwing away the day. We wanted something different for our people: not to find ourselves an old, reactionary republic, full of ghost-fears, the fears of death and the fears of birth. We want something else.[3]
We want something else, but our systems and institutions rarely provide it. Even the church itself, where we might assume we could find that “something else,” is mired in a domination/subordination dynamic. Much Christian theology is rooted in the idea that people are so inherently evil that we must subordinate ourselves to God, and then -- convenient for church officials -- to a calcified dogma and doctrine propagated by the church.

It shouldn’t be surprising that this conception of Christianity coexists comfortably with the power-over exercised by the contemporary nation-state and corporation. These groups of elites -- political, economic, religious -- take for themselves the right to dominate in their arena, eyeing the other elites nervously, knowing they must collaborate with each other but always aware they also are in nervous competition in the struggle for primacy. Such is the nature of life, even for the ultra-privileged, in a power-over world.

We must give this kind of system its due: Clearly, a system based on power-over can be productive -- it can extract resources from the earth and energy from people to produce a vast array of goods and services, which brings some benefits to some people. But just as clearly, such a system can never be truly creative -- it cannot create a world in which all people flourish, create new ways of understanding, or create solutions to the problems power-over inevitably generates. Such flourishing, understanding, and problem-solving come not from power-over but from power-with, an understanding of power not based in assertions of independence and destructive dominance but in an embrace of interdependence and creative cooperation.

In a hyper-individualized society based on capitalism’s glorification of greed, it’s not surprising that an adolescent conception of selfish independence would define our political and economic institutions and dominate our cultural imagination. Of course the struggle for a certain kind of independence -- being free from the imposition of power-over -- is not a trivial matter; we see what inhumanity is possible when people are not truly free to act as individuals, and we know that independence at the personal level matters in our lives. Yet we all know that we are not independent beings but profoundly interdependent with each other, other organisms, and the non-living world.

The task is to create a system that gives us freedom from the illegitimate authority that people and institutions attempt to impose on us, but recognizes our obligations to each other. One way to think through this is to imagine what a world would look like if power were not “over” but “with,” if we understood that our power can be magnified in collaboration with others.

Even in the midst of a capitalist economy structured on power-over, experiments in power-with go forward, such as worker cooperatives that are owned and controlled by members. The United States Federation of Worker Cooperatives estimates that there are more than 300 such democratic workplaces in the United States, employing 3,500 people and generating about $400 million in annual revenues, mostly concentrated in the Northeast, West Coast and Upper Midwest.

Worker cooperatives tend to create stable jobs, foster sustainable business practices, and support linkages among different segments of the community. The principles articulated by the federation capture the spirit behind, and organization of, cooperatives: voluntary and non-discriminatory open membership; control by members; equitable and democratic control of capital; commitment to education and training of members; cooperation with other cooperatives; and a commitment to sustainable community development.[4]

One exciting example of this model is Green Worker Cooperatives, which was established to incubate worker-owned and environmentally friendly cooperatives in the South Bronx. The first cooperative they launched, the ReBuilders Source, is a retail warehouse for surplus and salvaged building materials recovered from construction and demolition jobs. In the Green Worker Cooperatives’ own words:
Our approach is a response to high unemployment and decades of environmental racism. We don’t have the luxury to wait for new alternatives. That’s why we’re creating them. We believe that in order to address our environmental and economic problems we need new ways to earn a living that don’t require polluting the earth or exploiting human labor.[5]
For many, it’s hard to imagine working in institutions based on real cooperation because the society in which we live is structured on such a different notion. Yet if we think of experiences when we feel authentically most at home -- not just our home with family, but with friends, in political groups, at church, in a community association -- we typically feel powerful not because we can force people to do things or can ignore other people’s needs in our decisions; we feel powerful when we come together with others to create something we couldn’t have created alone.

Though it sounds paradoxical in this culture, this leads to an important insight:
We are most free when we are most bound to others.
When bonds are created under conditions of mutual respect and shared power, our freedom is deepened by such interdependence. Our strength is not sapped by these bonds but is enhanced by the emergent properties of collective human action. The individual efforts of numerous people cannot simply be added together and plugged into an equation to predict the outcome, but rather their simple actions come together in a collective result that is novel and irreducible.

The most creative force does not come from a power, centralized either in one person or one institution and its bureaucracy, which imposes its will on others and treats people as inputs whose energy can be plugged into a formula for production. The most creative force comes from distributed power that channels the contributions of many into ends that people define collectively. This goes against the cultural icon of the heroic figure, who may enlist the help of others but, in the end, draws on a power that is individual and ultimately in conflict with other power in the world.

Heroic figures typically are overrated, as those who are put in that role often understand. In Brecht’s play Galileo, the famed scientist’s assistant is devastated when Galileo recants his scientific beliefs under threat from the Inquisition. Andrea confronts Galileo: “Unhappy is the land that breeds no hero.” Galileo responds, “No, Andrea: Unhappy is the land that needs a hero.”[6]

[This essay is excerpted from Robert Jensen’s new book, All My Bones Shake: Seeking a Progressive Path to the Prophetic Voice, published by Soft Skull Press.

Robert Jensen is a journalism professor at the University of Texas at Austin and board member of the Third Coast Activist Resource Center in Austin, TX. He is the author of several books and is a regular contributor to The Rag Blog. Jensen can be reached at rjensen@uts.cc.utexas.edu and his articles can be found online here.]

References:
  1. The power-over/power-with distinction is usually credited to Mary Parker Follett, a theorist, political organizer, and social activist who wrote several influential books in the first half of the twentieth century. The terms are used today in a variety of academic, political, and business settings. I first encountered this term in discussions with feminist activists. For a review, see “Feminist Perspectives on Power,” Stanford Encyclopedia of Philosophy, October 2005.

  2. Quoted in Melvyn Leffler, A Preponderance of Power: National Security, the Truman Administration, and the Cold War (Stanford, CA.: Stanford University Press, 1992), pp. 18-19.

  3. Muriel Rukeyser, quoted in Adrienne Rich, What is Found There, (New York: W.W. Norton, 1993), page preceding preface. Originally published in The Life of Poetry (New York: Current Books, 1949).

  4. United States Federation of Worker Cooperatives, "About Worker Cooperatives.” See also, International Organization of Industrial, Artisan and Service Producers’ Cooperatives, "World Declaration on Cooperative Worker Ownership,” February 2004.

  5. Green Worker Cooperative, “Advocating Zero Waste.”

  6. Bertolt Brecht, Galileo (New York: Grove Press, 1940), p. 115
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23 March 2009

Greening Up the Co-operative Movement

The River Arts co-op development is considering solar panels. The building’s energy committee includes Julie Ruben, top, and from left, Jack Fogle, Frank Gary and Paul Kittas. Photo: Jennifer S. Altman for The New York Times.

It’s Not Easy Turning Co-op Boards Green
By Mireya Navarro / March 22, 2009

Seated at an oval table with spreadsheets and calculators at the ready, the six-member board of River Arts, a 244-unit co-op development in Washington Heights, mulled over the pros and cons of investing in solar power.

Ed Lloyd, the board president, was not convinced that the co-op would get its initial investment back.

“I don’t want us to be all caught up in green and end up in the red,” he said. “I’m as environmentally conscious as the next person but we can’t base it all on that.”

Jack Fogle, a resident who had worked for more than a year with the co-op’s energy committee to sell the idea, pressed on.

“If we take the risk, that money will pay us back for the next 30 years,” said Mr. Fogle, who is also the building’s manager.

The politics at residential buildings, which are notoriously contentious, have become even more so as environmental issues have entered the fray. At many co-ops and condominiums, the members of energy and green committees lobby and cajole their neighbors to embrace projects that sometimes require upfront money, like solar panels, but more often just demand interest and effort on the part of residents, like recycling correctly.

It can be a thankless job that sometimes is met with indifference, skepticism and even outright hostility. But environmentally motivated residents say they operate on the theory of, “If I don’t do it, who will?” as it was put by Sharon Lee Ritchie, who started a green committee in her co-op in Harlem.

While more fervent advocates can gravitate toward weighty projects — a green roof or solar panels, for example — mundane measures can make more of an impact, experts say. But no matter what the investment, environmental consciousness can be a tough sell in a bad economy, especially when it can takes years to recoup the initial cost for some projects.

At River Arts, one argument that was used to sell the board on the idea of solar energy was the savings achieved by Cabrini Terrace, another co-op in Washington Heights, which went solar in 2007 and shared its figures with the River Arts board.

Frank Rathbun, a spokesman for Community Associations Institute, a national group that represents homeowner associations, said that if co-op boards “can show savings, the homeowners are going to be a lot more receptive.”

That has been the case at River Arts, which overlooks the Hudson River on Riverside Drive. In 2007, members of an energy committee had pushed to install solar panels to produce part of the building’s electricity, but the board balked because it would take 10 years to recover the investment through energy savings, Mr. Fogle said.

Since then, new federal, state and city tax credits have become available, reducing River Arts’ net cost of a $400,000 system to $10,000 — meaning it would take about one year for the co-op to recover the investment, Mr. Fogle said. The co-op expects its solar power to eventually reduce energy costs by $7,000 a year. At a committee meeting in January to plan the presentation for board members and shareholders, tensions rose as discussions stalled on details like how much information shareholders needed to hear about the timeline for the project.

“People! People!” Mr. Fogle shouted. “You don’t need to give people more than is necessary.” He walked out of the room, returning a few minutes later in a calmer state.

Finally, at a meeting in February, the hard work seemed to be paying off.

“Financially, it sounds like the numbers are reasonable,” conceded Mr. Lloyd, the board president.

There is little question that the green movement has gained significant traction in recent years.

In New York, city officials say residential buildings produce more carbon dioxide emissions — 30 percent — than any other large sources of emissions, such as commercial buildings or transportation. Nearly two-thirds of those emissions come from the use of electricity and natural gas.

Scott M. Stringer, the Manhattan borough president, said he knew interest in greening buildings was high when he called a conference on the topic in late 2007 and a standing-room-only crowd of 500 people came.

“The green-building movement is now commonplace,” he said. “It’s a combination of economics, saving the environment and this whole notion that the measures we take enhance the quality of life,” he said.

Yet there are still battles to be fought, and not all of them related to money. At River Arts, part of the challenge is to win over apathetic residents.

One member of the energy committee, Julie Ruben, said that an informational meeting on the idea for solar in December drew barely a dozen people. The co-op residents will ultimately have to vote to approve the plan.

And at another co-op building in Washington Heights, the residents’ input was nearly avoided altogether at first. Yonah Zur, 31, a musician who lives with his wife and young son, got a compost pile going in his co-op’s backyard with the knowledge of only the few members of the building’s garden committee. He said that compost bins are often mistakenly assumed to smell and attract rodents, and he worried about the reaction from the rest of the owners.

“I wanted to make it work and then show the neighbors,” Mr. Zur said.

After eight months of composting food scraps and leaves by himself in a spot not visible from most of the building’s 120 units, Mr. Zur put up signs in the elevator last May, announcing a garden clean-up and a compost lesson. Now as many as 10 apartments use four compost bins. But one neighbor did not like the aesthetics of a tall bin that held a pile of leaves outside her window.

“She was complaining about the look of it,” Mr. Zur said. The problem was solved by moving the bin eight feet away from the neighbor’s apartment.

Many of those pushing for greening buildings argue that any step, no matter how small, helps create a commitment that can lead to more ambitious undertakings.

Ms. Ritchie, the co-op owner in Harlem, said that she did not feel it was realistic to go for big energy projects when her 241-unit co-op in Harlem already has a list of must-do capital projects. So she turned her attention to “doable” things like a clothing and fabric recycling program, partnering with Wearable Collections, a local business that does curbside pickups.

At her 241-unit co-op in Harlem, Sharon Lee Ritchie pushed smaller environmental projects, like using eco-friendly cleaning products. Photo: Jennifer S. Altman for The New York Times.


Experts from the U.S. Green Building Council, a nonprofit group that certifies buildings for energy efficiency and other environmental features, say that it is the unglamorous measures that are beneficial but often overlooked. Those include insulating steam pipes, sealing leaks around windows, weather-stripping doors, investing in a gas-fired boiler or co-generation, sub-metering electricity so owners pay for their own consumption, or even making sure lights are not left on all the time.

Ms. Ritchie, who owns an event planning and design business, said she convinced a skeptical building superintendent — “just humor me for a week,” she told him — to try out eco-friendly cleaning products, which come in such highly concentrated formulas, she said, that they now save the building $500 a month in cleaning supplies.

Still, for almost two years, her building’s green committee had only one member: Ms. Ritchie. “I just think people are busy and they’re happy to participate without spending any of their time,” she said of her rewarding but lonely greening experience.

She was overjoyed this month when seven new volunteers agreed to join her committee.

Source / New York Times

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