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Title: The Economics of Freedom
Author: Solidarity Federation
Date: 2003
Language: en
Topics: anarcho-communism, libertarian communism, capitalism, anti-capitalist, economics, anarcho-syndicalism
Source: http://www.solfed.org.uk/solfed/the-economics-of-freedom

Solidarity Federation

The Economics of Freedom

Preface

This pamphlet has been written by a group of people in the Solidarity

Federation. We are actively involved in taking direct action for a

better world. However, we are also interested in what this better world

might be like and how it might work. In the current world of US-led

terror against terror, corporate cronyism and corruption, and widening

global and class inequality, we all want and deserve better.

The Solidarity Federation is the British section of the

anarcho-syndicalist global movement. Anarcho-syndicalism is about direct

democracy – democracy from the bottom up - no party politicians,

corporate managers or union leaders. Direct democracy means decisions

are made by all those present. Hence, we cannot be prescriptive about

what a future, decent economy might work like. It will be decided by the

people there at the time. Hopefully, it will happen soon, and everyone

will be involved. However, in the meantime, it is rather a cop-out to

simply say, “we'll sort that out later” and then, fall back on abstract

principles or vague concepts. So, we thought it would be useful to

develop a detailed model (but not a straightjacket) of how it could

work. This is the result.

Introduction

There is an assumption that there is no viable alternative to the free

market. The TV, newspapers, politicians and others seem to accept this

assumption. Many people openly point to the free market as the root of

most of our modern social problems; yet, even they feel powerless in the

face of the mantra – ‘there is no other way'. Indeed, anyone who speaks

out against it often gets a vigorous and angry response – to the effect

that, without the free market we would be stuck in a high inflation,

high unemployment system where the goods we all need are in short supply

or non-existent. Apparently, we need the free market for our survival.

In reality, we need the free market for as long as we want to continue

the pain and misery it brings to millions. The question is, what might

be better than it? This pamphlet discusses ways in which we could

organise an economy which not only replaces the capitalist free market

with a humane alternative, but also helps solve the other major problems

that come with western-style ‘democracy'.

We can make three initial points. Firstly, in any modern society we need

an economy – a means of working out what to spend our labour and

resources on, how much and what to produce, and who should get how much

of the various goods and services made available. Secondly, the idea of

this booklet is not to provide a blueprint, manifesto, set of rules or

definitive critique or plan. Future economies may be local and based on

self-sufficiency, and they may be pretty minimal and ad-hoc. On the

other hand, at least parts of the economy may be more sophisticated,

especially if future societies want lots of complex goods requiring a

degree of centralised production. People, both now and in the future,

should have autonomy to decide what sort of economy they want. This

pamphlet is simply intended to raise some ideas and suggest concrete

ways in which we might move forward towards a much better economic

system. Thirdly, we are not interested in abstract theories. Any ‘new'

economy must be developed from where we are now. We take our reaction to

capitalism and the free market as our starting point. With these points

in mind, this booklet has three main sections.

The first section outlines where capitalism is now, what is wrong with

the free market, and why we need an alternative. Many of us

instinctively know that profit and the obscene concentration of wealth

and capital is at the heart of why the free market is wrong. Here, we

will attempt to explain why this is, simply, yet concisely and clearly,

using only watertight logic.

The second section is about libertarian communism, what the term means

in practice, and how it might work. It outlines some ideas on community,

solidarity, collectivism and individualism, and their roles in both the

current and future society.

The third section is about the role of planning in the economy.

Economists have always discussed the virtues and problems of economic

planning. One thing we know – the way it was done in soviet Russia

didn't work. Under capitalism, planning is done only for profit, whereas

we argue that it can be used to successfully organise a more humane

economy.

Finally, we will draw conclusions for an anarchist economy and sum up

the main things we have identified as useful to know and useful to aim

for. This isn't the first or the last word on alternative economics, it

is merely a few in the middle.

1: Free Market Myths

The free market is currently held up as the saviour of all human kind.

Since the end of the cold war and the fall of the Soviet Union, the

victors have claimed outright control over all our futures. The good

guys won, and now western democracy, underpinned by free market

economics, will soon be spreading peace and prosperity to all areas of

the world.

There are still problems, but these can be blamed on Islamic fanatics

and the like, who wish to stand in the way of progress. They will be

overcome by the American-led west, determined to establish a new and

‘just' world order based on global capitalism.

The new orthodoxy is rarely, if at all, challenged (indeed, since

September 2001, mere questions are often angrily rejected as terrorist

sympathies). Also, the global market myth, so keenly championed by the

powerful, is bringing tremendous benefits - to the rich and powerful. As

the income gap widens, so does the power gap, and so only the voices of

the rich and powerful can be heard - after all, they have TV companies,

newspapers, and spin doctors.

Not surprisingly, they think everything's pretty much OK – but they

cannot turn a blind eye to the growing catastrophe forever. The

down-side starts with the untold cost to the vast majority of the

world's population. The gap between rich and poor, both within society

and between the northern and southern hemisphere, continues to widen.

But it doesn't end here, as power is increasingly concentrated in the

hands of the few at the expense of the many.

Behind the blaze of glitzy capitalist propaganda, the idea that we live

in a society run on the “free market” is simply a sick joke. The reality

of how the economy really works is never really discussed. When was the

last time you saw a media story seeking to expose the realities of how

the economy works? They often expose individual cruelty, and they may

even talk of institutional weakness, but they never question the

existence of the free market god. Compare this to the Soviet era, when

there were regular reports in the West exposing the realities and

failings of the Soviet economy. Of course the Soviet economy was a

disaster, but the point is, at least we used to talk about alternative

economics back then. If the truth of how the economy really works were

to become the stuff of daily news programs, it would soon become clear

that the economy is not run according to free market principles.

Instead, it is steered on a daily basis by the rich and powerful. It is

not market forces that drive the economy, but the needs, desires and

ambitions of all those who together control the political, economic and

social life of society.

Market logic?

So, we do not have a free market – any suggestion we do is basically a

lie. But, if we did have one, how would it work according to economic

theory? In fact, the theory rarely gets beyond text books, mainly

because it bears so little resemblance to the world, we currently occupy

that it is merely an abstract idea.

The free market is supposed to be where goods and services are

spontaneously traded without any planning or control by governments.

This is done through individuals pursuing their own self-advantage and

by buying and selling freely. Competition ensues, which leads to a range

of prices for goods ensuring that all society can afford them. By

registering our demand for our private wants and desires in terms of how

much we are willing to pay and how much we are willing to sell for, the

market acts as a ‘invisible hand' (according to Adam Smith), guiding

what is produced and consumed. As long as the market stays free from

interfering governments and busybodies, there is supposed to be a

continuous increase in the wealth and welfare of all of us. Even if it

seems some people are becoming much richer than the rest, this is good

because it will eventually lead to them spending more and providing more

jobs. In this way wealth ‘trickles down' to the rest of society.

In fact, free market theory was developed for the small regional

economies that existed under feudalism in the European late middle ages.

Consequently, it is ill-matched to the current reality of globally

integrated corporations and modern marketing techniques. In the made-up

world of perfect competition, it is the consumer who rules. Suffice to

say, free market theory was developed after capitalism came on the

scene, as a means of explaining how the system worked. If anyone had

advocated it beforehand, no doubt the evident flaws would have been

exposed, and it would have been abandoned as an idea that would never

work in practice. And, of course, it doesn't.

The pretence that we live in a free market system regulated by

competition and ruled by the consumer is continued only because it

benefits the world's elite. It conjures up a world of powerless

companies and powerful consumers, where anyone can start up their own

company to create their own Microsoft or Ford – the stuff of the great

American dream. Free market theory also helps to further the false

notion of western democracy. It suggests that capitalism is “democratic”

economically as well as politically. Just as we cast our vote in

elections, by buying good “A” instead of good “B”, we are casting our

vote in the economy. Since, as the theory goes, the consumer is king,

each individual purchase we make contributes to society's collective

decisions as to how scarce resources and labour are best utilised.

In fact, competition does the opposite of what the theory claims.

Instead of keeping company power in check, it adds to it. The effect is

ever-greater centralisation and consolidation of power in the hands of

the few who control production. The weakest go to the wall, thus

reducing diversity. The real history of capitalism is one of

monopolisation. It occurred first within regions, then within national

economies and now increasingly across the global economy. From IT,

insurance and banking to supermarkets and manufacturing, a small handful

of companies dominate. Once they reach this position, they not only

wield power within their sector, they also act together with other

dominant monopolies to wield their joint power in all aspects of

society.

Through advertising, companies create markets for their products. They

constantly strive to present a virtual society that almost everyone can

buy into. Even the poorest can join the glamorous world depicted in the

adverts, by simply buying a pair of jeans or a new mobile phone – sold

as more a way of life than a product. Consumption is portrayed as an end

in itself, a temporary escape from the drudgery of everyday work. No

wonder consumption has become more transient, hedonistic and

pleasure-driven.

Using huge concentrations of wealth generated through profit, companies

are increasingly able to influence and create social and cultural

aspirations. Media is controlled because it relies on advertising, so it

must comply with what big business wants. This is a one way trip – there

is no balance of forces, only a single, snowballing force. Hence,

Coca-Cola culture inexorably spreads across the globe. Even in the

poorest countries, the only ‘solutions' on offer are from capitalism,

ensuring more of the same.

The single aim of companies is to create demand in order to ensure

ever-greater profit. The logic of capitalism is that companies must

constantly reinvest profits or go under. Companies cannot stand still.

Far from the static world of free market theory, capitalism in reality

is constantly expanding in search of new profit. It is this which gives

it its dynamism. Companies must constantly create new markets for new

goods and services, whether it is the latest generation internet

superhighway technology, or a new flavour of potato crisps.

Free lunches?

The environment is treated as a free lunch in the drive for profit.

Since environmental damage is not generally directly borne by companies,

it does not impact on profit, at least in the short term. To protect the

environment would be an unwanted extra cost, and competitors who ignore

it would get ahead. Thus, there is competition as to who can cut costs,

such as spending on environmental protection or decent wages. The

winners will generally be those who care the least about the environment

and workers.

Of course, capitalism does take account of environmental protest, but

only when it threatens profits. Hence, companies will invest in trying

to nullify environmental protest. Ironically, as the global

environmental destruction continues apace, capitalism is spending more

on bribing governments and running slick greenwash advertising

campaigns, aimed at undermining protest. They plough money into

environmental and human rights charities and the like, as a cheap sop to

pretend they care and try to give the impression that it is OK, that

there is a balance under capitalism, and that companies are ethical in

contributing to it.

Even the most boneheaded of capitalists must realise that, if things do

not change radically, the earth as we know it is doomed. However, they

are transfixed by the logic of capitalism and the everyday short-term

rush for making more profit than the outfit next door. Capitalism has

tapped into a human condition where, apparently, for those caught up in

the race, priorities are reversed, in the same way in which disease can

often trick the body into a reaction which makes health worse rather

than better. For capitalists, in the current drive to destruction, the

crucial thing is in being ahead, not in where we are heading.

The need to constantly expand and get ahead is a key factor in making

capitalism inherently unstable. Historically, cycles of overproduction

occur leading to unsold goods and economic slump, so-called boom and

bust. While free market theory suggests that scarce raw materials and

labour will be utilised efficiently, in reality, capitalism is a system

of over-producing wastefulness. The single-minded drive for profit means

companies inevitably must create unwanted need to stimulate ever-more

demand, hence the massive advertising budgets they all have. But even

with these, there can never be enough demand to absorb all it produces.

It is not scarcity that is the problem in the market made fickle by

advert-saturation, but too many goods and the wrong type of production.

Lies and obscenities

In a world where millions die for want of basics such as medicine and

water, capitalist over-production may seem distant. But the deaths are

due to inequality, not lack of collective resources. Capitalism does not

produce for the poor, as they have no income and are therefore not a

source of profit. Given this reality, of all the ridiculous claims of

free market theory, perhaps the most obscene one is the boast that it is

able to allocate resources equitably. While we have unwanted computers

piling up in one part of the world, we have children dying of starvation

in others.

Another obscenity is the free market claim that it guarantees that only

the best quality goods will be made. The theory is that consumers faced

with poor quality goods, simply switch to an alternative supplier,

leaving the company making poor quality goods having to improve them or

go bankrupt. The reality is that markets are dominated by a small number

of companies whose main driving force is to sell more units to make more

profit. Hence, they must build goods that will not last in order that

the consumer will be forced to replace them in a relatively short period

of time. The idea that consumers will see through this is flawed,

because, firstly, companies all produce goods with short lives (so there

are few or no long-lived alternatives and, therefore, no real choice),

and, secondly, faced with today's thousands of high-tech goods,

consumers cannot hope to be able to distinguish between good or bad

products. Hence, many people fall back on the names they know – hence,

branding.

A key aim of capitalism is to confuse consumers. The last thing

companies want is for the consumer to find a cheap shampoo that suits

them, and stay with it for life. They need to keep producing “new”

(repackaged) products that they can get people to pay more for. Perfect

hair is just around the corner, with today's new product. This is not to

say that consumption is inherently wrong, far from it. What we need is

an economic system which will allow us to maximise our quality of life

from consumption, rather than simply generate company profits as at

present.

Far from being static, capitalism is still expanding. For most of the

latter half of the 20th century, the power of the transnational

companies was partly held in check due to the ever present threat of the

Soviet Union and the ideas of socialism. In order to keep workers on

board, the state was forced to provide basic welfare provision in the

form of the welfare state and at least talk about wealth redistribution.

However, since the collapse of the Soviet Union, any capitalist fear

that workers may be attracted to socialism has greatly diminished. Now,

the state is returning to its more traditional role of assisting

capitalism to maximise profit, with little regard for the cost to the

rest of us, both in the developed and underdeveloped world.

State handouts

This brings us to another great myth of the free market – the idea that

the state only hinders it. In fact, capitalism could not exist without

massive state support, not least in constantly stabilising a permanently

unstable system. As each period of overproduction leads inevitably to

slump, the state increases spending to stimulate demand. Also, with

today's deregulated international finance markets, the state is needed

to monitor and police the global financial system in order to prevent

crisis. Through state finance, that is, our money, capitalism is

regularly bailed out to avoid economic crisis. Whether it is the US

loans scandal, economic crisis in the far east, or banking meltdown in

South America, state funds are the medicine used to cure the capitalist

cold. Clearly, without state intervention, capitalism would slide into

constant crisis and stagnation.

The state also supports capitalism in many other ways, without which

capitalism would not survive. Where would capitalism be without welfare,

education, transport, research and development, a banking and legal

system, regular tax-breaks and subsidies, and a military to protect

capitalist interests? Now, through organisations such as the World Bank,

IMF and WTO, the state is ensuring even greater profits through widening

inequality.

As usual, everything is dressed in free market rhetoric. Increased

competition, trade and deregulation is all supposed to bring about

increased prosperity across the globe. However, as we have seen, free

market theory has little to do with economic reality. While the

underdeveloped world is forced to open up its markets, the developed

world is quietly building up its economic barriers. Increased global

trade allows transnational companies from the developed world to invade

and take over profitable parts of economies overseas, and establish

cheap labour production units there. Technological transfer would allow

developing economies to get a look in, so developed countries make sure

secrecy and copyright protection is intact. The truth is, ‘fair'

competition on an equal basis is the last thing they want. Competition

is bad for profits after all. However, monopoly multinationals make tidy

profits from overseas slave camps.

But scandalous profits from slave labour in the developing world are not

enough. We in the developed world must give our pound of flesh for the

shareholder dividend too. Here, modernisation, deregulation and

flexibility are the current buzz words for maximising exploitation of

workers. Removing rights of workers to defend their jobs, while letting

companies regulate themselves (a laughable idea, if the consequences

were not so serious) has already led to falling wages for large section

of the working class. Further cuts in welfare provision and legislation

aimed at forcing people into work can only drive down wages and working

conditions further. Alongside this even greater use of the private

sector in transport, education and welfare, leading to cherry-picking of

lucrative public contracts, spiralling private profits from the public

purse, and a downwards spiral in the quality of public services. The

inevitable down side is a drop in quality of life which falls

disproportionately on the working class.

The nature of the state is changing. The nation state is being left

behind in favour of superstates who try to ensure that the most profits

go to the companies located within their borders. Based on Europe, the

Americas and Asia, these large economic-political blocs have been

developing for the last half century. Since the collapse of the Soviet

Union, Europe and Asia have felt less need for US military protection

and have started challenging US economic dominance. The history of

capitalism is one of competing economic blocs struggling for dominance.

This has led directly to two world wars and hundreds of more minor ones.

As capitalism expands, the world is becoming proportionally unsafe, and

the risk of another major conflict between the developing superstates is

enormous.

Buy now, pay soon

At its centre, capitalism is built on a set of rotten, mythical, flawed

theories, around which the rich and powerful have created an arrangement

of smoke and mirrors in an attempt to provide an illusion that

everything is OK. In fact, the system works for practically no-one. Even

those who manage to gather personal wealth from saving up or exploiting

other people's labour find that, as the old saying goes, money can't buy

love or happiness. In fact, money can't buy many of the core things we

need for our humanity and quality of life. It can't buy democracy; it

can't buy equality; it can't buy self-esteem (despite what your average

sharp-dressed, car-worshipping wide boy might think); and it can't buy

real social interaction – which is at the core of humanity itself. Even

for the things it can buy, like goods, property, work and labour, money

doesn't go very far for most of us and, as we are seeing now, it creates

huge inequality and oppression in the process. Of course, in a

privatised world where everything is owned by someone, we all need money

to survive and get our basic needs, but in the long run, capitalism and

money are never going to be able to form the basis of a sustainable

economy based on maximising our quality of life.

We are entering a new and uncertain period, in which free market

mythology is used as propaganda to camouflage the increasing

concentration of wealth and power. Since capitalism always leads to more

war, the challenge facing those of us who seek a more just and peaceful

future is enormous. But already, the growing greed and unfairness has

provoked a response from the anti-capitalist movement. If it is to

succeed, this new movement must carry in its heart an alternative system

to capitalism and the state. The debate and action must be continuous,

and the demands uncompromising. In the rest of this pamphlet, we will

begin to map out an anarcho-syndicalist alternative to capitalism as

part of this debate.

2: Libertarian Communism

To anarcho-syndicalists, a viable alternative to capitalism is

‘libertarian communism', and this section describes it and shows how it

can work.

The ‘communist' nations are no more, so arguing for a communist society

may currently seem unrealistic. But true communism, libertarian

communism, is not an authoritarian state-run economy like the Soviet

Union. Libertarian communism is based on the principle of solidarity in

a society without money. People work as a social duty; wages are

unnecessary – ‘from each according to their ability'; and cash is no

longer needed to acquire goods – ‘to each according to their need'.

A libertarian communist economy, a system without the market and where

everyone has equal rights to have their needs met, has always been the

aim of anarcho-syndicalists. Workers' self-management would amount to

little in a world of inequality with decisions being dictated by the

market. However, we have also been careful to always point out that any

communist system will be nightmarish unless the people support it and

are involved in running it. Anarcho-syndicalists have therefore always

been careful to describe themselves as ‘libertarian', as opposed to

authoritarian, communists.

What will motivate people to work if they are not paid? - The answer is

solidarity. But why should such a level of solidarity exist in a

libertarian communist society? To answer this we must look at modern

economies and examine what kind of solidarity an industrial society

could produce given the right conditions. How will goods be allocated

without prices? What will stop people taking more than their share if

they do not have to pay? Again, part of the answer lies in solidarity

and part in organising ways to determine people's needs and to allocate

goods accordingly. Answering these questions reveals the full value and

potential of libertarian communism.

If society is to continue in anything but a fairly wretched form,

humanity must embrace the ideal of libertarian communism. This is the

only effective means to guarantee liberty and equality since classes

will no longer exist in a society where all have equal control over

decision-making and equal access to goods and services. It is also the

only means to ensure prosperity for all as well as to safeguard the

environment.

Income inequality will always exist in any economy based on money, even

if the means of production were in social ownership, hardening into

class distinctions. In time, the most privileged class would come to

dominate economic, political and social life.

Libertarian communism guarantees prosperity, as it is the only form of

society in which all production is purely for need. Even in the

‘affluent' West, lower income groups struggle to keep up with rising

household expenditures. Many are forced to live in unhealthy housing,

subsist on poor diets and endure fuel poverty. Disgraceful income gaps

exist between classes, between sexes and between ethnic groups. While it

is necessary to struggle for improvement in the material position of

women, ethnic minorities and the working class within capitalism, we

must remember that only libertarian communism can guarantee absolute

equality.

Environmental protection is also guaranteed. When production is for

need, not profit, there is no reason to ignore environmental costs.

There is no private interest to conflict with the good of the people and

of the planet as a whole. The human environment improves too, as

libertarian communism emphasises the improvement of community life and

community interaction above individual consumption. Society becomes

reintegrated; anti-social behaviour declines, and the selfish, negative

side of individualism fades. But is the transition to Libertarian

Communism realistic, given that modern life is dominated by

self-interest? Some on the left argue that a moneyless society would

require physical compulsion to work. This, however, is slavery, not

communism. Of course, those who refuse to work must be censured, but

moral censure is not the only basis of the system.

The real basis of libertarian communism is the communist consciousness

that comes from the day to day experience of working in a communist

economy.

One thing should be clear. No-one can dismiss libertarian communism on

the grounds that human nature is irredeemably self-centred. The

superstition-mongers of the organised religions have tried to sell us

that one for over two thousand years. More recently, peddlers of

pseudo-sciences such as ‘socio-biology' have joined in. The fact is,

levels of selfishness or altruism are a function of social structures.

Hunter-gatherer tribes have no inequalities of wealth. Hunting is

usually carried out collectively, but when a hunter does hunt

individually, the results are shared with the rest of the group.

According to the socio-biologists, this is impossible.

Getting started

If people are to work without material incentives, we have to imagine a

world where the social bonds between people are much stronger than they

are today, where these social bonds are enough to motivate us to get out

of bed and go out to work.

Solidarity exists between people who have similar lifestyles, outlooks

and economic roles. In hunter-gatherer societies, for instance, beyond

the division of labour on gender grounds, different individuals have

very similar work roles, to the extent that they have no real personal

choice or discretion. In this kind of economy, people work automatically

and without reflection, in a way that is dictated by custom and

dominated by a collective consciousness. This consciousness represents a

world view and behavioural code shared by the whole tribe. It is very

unlike the individual consciousness that exists in the developed world

today, consisting of sets of thoughts and opinions which are not fixed

rigidly by society and which vary a great deal from one person to

another. The kind of solidarity envisaged by libertarian communism is

almost entirely lacking.

Working class community life up until the 1950s and ‘60s involved a

great deal of solidarity and mutual aid. Obviously, solidarity was not

as strong as in hunter-gatherer tribes, where individualism hardly

exists, but it was still a powerful force. This is not to argue that

working class people were all the same, just that they had a set of

common day-to-day experiences, a feature that is not easy to find in our

modern, atomised communities. British workers in the 19th Century lived

near to their work in communities based on their shared, collective

experiences, many of them often working for the same boss.

This solidarity included informal ‘charity', reflecting a level of

concern for the welfare of others in the neighbourhood that is largely

absent from modern life. A survey of working class life in an area of

South London at the start of the 20th Century (Pember Reeves, 1979;

Round About a Pound a Week: Virago) found that: ‘Should the man go into

hospital
extraordinary kindness to the wife and children will be shown
A

family who have lived for years in one street are recognised up and down

the length of that street as people to be helped in time of trouble.'

These communities were not to last. Increasing industrialisation

continued to draw displaced farm workers into the cities causing gross

overcrowding, in turn leading to widespread health problems. Throughout

the 20th Century workers moved out of city centres to the suburbs and

gradually the old inner city communities were broken up.

The level of selfishness or social duty, individualism or solidarity,

that exists in society is the result of social structures and economic

imperatives. So our consciousness would change if our society and

economy were to change. When the way we worked and lived was different,

so was our consciousness. As social structures and the economy have

continued to develop and change in a selfish and negative fashion, so

the negative side of individualism has come to the fore. Human nature

can be more or less socially directed given the right environment, but

can the right environment exist in the modern world? We certainly cannot

go back to the conditions that gave rise to mutual aid in the past.

Modern societies might seem too large and alienating to make anarchist

ideals possible. But, to use an awful modern clichĂ©', we need ‘to look

outside the box'. Libertarian communism is not ‘primitivism', and

economic organisation must be compatible with both a national and an

international division of labour.

21st Century solidarity

A more progressive kind of solidarity can exist between people with

different jobs, whose combined labours provide for the needs of the

community. This solidarity works like the parts of a body, which are

different, but still act together as a whole. By definition, people

working in an economic system with a division of labour do not survive

purely through their own efforts. The butcher (or the organic

greengrocer) relies on the baker and candlestick maker to provide bread

and light. Workers who assemble computers rely on the various people who

manufacture glass, plastic, microchips and circuit boards and glass.

Production is only possible through a chain of dependent relationships.

Every enterprise relies on a host of others to supply raw materials,

machinery or transport. Every consumer relies on the efforts of a large

number of workers for the goods and services they need. The labour of

one worker is just a small part of a huge collective effort to meet the

needs of the whole of society. The division of labour creates bonds of

dependency and mutual interest on a global scale.

The problem with capitalism is that an anti-social system of money,

profit and private property is superimposed on this fundamentally social

economic structure. People who are actually working in co-operation with

others are forced into relationships of competition and mutual

hostility. Although, in reality, people work as part of a social whole,

they do not actually feel that this is the case.

This is because their needs are not at the centre of the economic

system. Capitalists attempt to force wages down to the lowest level

dictated by the labour market. Workers get paid only as long as it is

profitable for the capitalist to employ them. Once they lose this value,

the employer makes them redundant. Workers therefore feel they are a

means to an end rather than their needs being an end in themselves. Thus

they don't identify with their work and don't feel they are part of a

common project. It is easy to see why, according to surveys, only a

quarter of the workforce think managers and other staff are on the same

side.

Capitalism vs. solidarity

This contradiction between the money system and the social nature of the

economy leads to the dysfunctional nature of modern life.

Industrialisation only meets our needs by destroying the environment,

thereby undermining the massive potential benefits it could bring.

The absence of solidarity and shared values destroys the social

framework the economy is operating in. While the division of labour and

industrialisation entail continual contact and communication between

people, the anti-social nature of capitalism means that the towns and

cities where we live together have become progressively more bereft of

social interaction. Communities break up, shared values have less

influence, and we become isolated from and no longer identify with those

we live among. Such lack of cohesion inevitably leads to rising

anti-social crime linked to our declining concern for each other. It

also leads to increased stress, mental health problems, and alcohol and

drug abuse.

By contrast, in a society without the private ownership of industry and

the competitive market, solidarity is much more possible. In a new type

of society, the latent social cohesion of an economy based on the

division of labour can be brought to the surface.

Solidarity does not exclude those who do not go out to work. Bringing up

children or having a caring responsibility is work as much as driving

buses or building houses is. In fact, these responsibilities demand far

more commitment and energy than the average paid job (although a caring

relationship is not only work). In capitalist society, single parents

without paid employment are scapegoated as selfish freeloaders. Any

rational person must regard this, regrettably widespread, attitude with

amazement. Helping bring up the next generation is surely one of the

most important contributions to society. In post-capitalist society, the

work aspect of parenting will become part of a co-operative, social

effort through more provision of childcare facilities and greater

community support for parents. Nevertheless, nothing must undermine the

emotional bond between parents and children.

Turning to the question of commitment to work in libertarian communism,

the fact is, a certain level of commitment to work already exists, even

under capitalism. Polls during the last decade have consistently found

that, on average, 70% of workers in Britain get satisfaction from the

work they do. Obviously, allowance must be made for the fact that what

people say in a survey can be different from how they actually conduct

their lives. This existing commitment to work can only be deepened by

the experience of being equal partners in a common co-operative project.

Such figures disprove the economist's assumption that work is a

‘disutility', something people naturally avoid unless forced to do it by

material necessity. The real issue for workers is often not the work

they do, but how it is organised by management and their treatment by

the boss.

Anarcho-syndicalists do not believe that abolishing the current

management system alone is enough to create libertarian communism. We

need to change what we produce, not just how we organise production.

People are unlikely to feel the necessary commitment to work if it is

solely directed towards more and more individualised forms of

consumption. Instead, it must be directed towards public services and

the promotion of the social and cultural life of the community.

Consumerism vs. quality of life

As we have seen, capitalism and its attendant consumerism do not deliver

on quality of life. Moreover, western society faces ‘the ruin of the

commons' on a vast scale. The combined effect of millions of individual

decisions to buy cars, for instance, creates global warming and destroys

our communal quality of life. People get straight into their cars and

travel to far away supermarkets, shopping centres and leisure

facilities, often mixing with no one but their most immediate

neighbours. The less we share experiences with the people we live among,

the more the hold of morality loosens and the more widespread crime,

alcoholism, drug abuse and other problems of modern life become.

In the long run, the loss of welfare from environmental destruction,

crime, etc. will outweigh the welfare gained from car and TV ownership.

Meanwhile, the consumer continues to consume, like an alcoholic drinking

to forget the problems their addiction has already caused. The purchase

of commodities like cars and home entertainment creates yet more demand

for these same products, as alternatives disappear or are run-down. The

level of necessary individual consumption rises, therefore, because

social changes make certain consumer spending imperative in a way not

seen in the past. For example, most people can no longer walk to work,

nor find worthwhile entertainment locally.

Real social progress can only come when a different consciousness

replaces economic individualism. Production decisions must be guided

towards building solidarity, collective welfare and social interaction.

The precise nature of this shift cannot be set out in advance, as it is

a product of the needs and desires of all the people and the compromises

they make with each other in deciding what they will consume; a few

possible examples can be given, though;

urban and rural communities should be created where facilities will be

nearer people's homes and interaction will be easier.

and services that create an isolated life-style. Rather than consuming

more and more DVDs, CDs, and other home entertainment, communities could

build more cinemas, libraries, theatres and leisure centres.

alternative to home entertainment. New technology, instead of isolating

society, could promote interaction and solidarity by enhancing the

quality of such events and public facilities.

community, not merely to broadcast only ‘local interest' programs, but

so that the content reflects the needs and desires of the community.

learning and full access to facilities at all levels, including learning

‘skills', social development and general interest education.

of use, should be wider than at present and should be designed and

provided on the basis of maximising quality of life.

Community living

The emphasis on community is not about creating a direct substitute for

the old working class communities, and the new collective consciousness

is not about sameness and conformity. The key to solidarity is the

understanding of how people with different occupations and outlooks

complement each other to promote a common good. Although local

communities will be rebuilt, a wider international consciousness based

on a sense of interconnectedness between people will also be apparent.

Promoting a more collective way of life is not the same as arguing for a

puritanical approach to modern life. Communist consciousness is not

about eliminating all concern for ourselves and our own pleasures, but

about adding a new dimension to our existence. Hence, libertarian

communists differ from other opponents of materialism, such as radical

Islamists or the more extreme opponents of industrial society found in

parts of the environmentalist movement. Libertarian communists envisage

a comfortable, enjoyable life for people in the future, in which modern

technology is one means to find entertainment and stimulation. But

technology must do this by bringing people together, not pushing them

apart.

If workers feel they are contributing to collective enjoyment and the

collective meeting of needs, it is easier to imagine them working

voluntarily. But what of the other side of the communist equation? Why

should people not over-consume without a price system to ration

consumption?

Under libertarian communism, people appreciate that they are producing a

social product for everyone. Such a collective consciousness means

taking more of anything than is needed will come to be seen as

anti-social. People will tend to limit their consumption to preserve a

good conscience and avoid social censure. However, leaving this purely

to good will would not counter potential acquisitiveness by an

anti-social few causing shortages and black markets. Thus, society will

need some controls over consumption to ensure that goods are not

consumed wastefully or greedily.

The general principles for distributing goods must of course be set

democratically, as we will describe in the next section. These will

include a system of ‘voluntary rationing', which is in no way like

war-time type rationing.

Private property vs. fair share

It may be argued that consumers will never want to give up their current

sense of ‘ownership' of cars, houses, consumer durables and the like.

But what sort of ownership do people really have? Nearly all housing and

a great many durables are bought on loans, overdrafts or hire purchase.

Houses are owned by banks or building societies for twenty five years or

so. The householder then enjoys a decade or two of ownership before

retirement brings the worry of possibly selling up to pay for nursing or

residential homes.

Likewise, consumer durables remain the property of the shop that sold

them until all the repayments (at very high interest rates) have been

made. After a fairly brief period of ‘ownership', wear and tear means a

replacement, complete with new debts. In a consumer society, the notion

of ‘private property' is a bit of a myth. It is more like the banks and

credit agencies owning us rather than us owning property.

The new collective consciousness is not about suppressing the desire for

personal ownership and economic self-interest, nor suppressing free

speech, freedom of thought or positive aspects of individuality. Rather,

it is about locating the individual within the collective, on the

understanding that individual freedom and welfare can only be promoted

in an environment where we all work together and respect, not dominate,

each other. Underpinning this is the need to solve the current social

and environmental problems.

In a libertarian communist society, the petty conflicts, anxieties and

resentments that currently fill our lives will vanish. Competition for

rank and privilege, fear of failing in the rat race, jealousy of those

above us and contempt for those below will all be confined to history.

Libertarian communism will therefore create the conditions for the

fullest development of human potential. Individualistic energies will be

channelled into creativity, dissidence, diversity and the quest for new

knowledge.

3: Democracy and Planning

If people in a libertarian communist society are to adequately feed,

house and cloth themselves, there must be planned economic activity.

Spontaneous feelings of solidarity and local initiative are certainly

necessary but, in themselves, they are not sufficient.

Anarcho-syndicalists want a society where everyone's needs are met fully

throughout their lives, and this requires a continuous, co-ordinated

effort, rather than sporadic activity. It also requires democracy, as

only a plan devised by involving the people as a whole can meet the

needs of the people as a whole.

Direct Democracy

Real democracy – let's call it direct democracy – works best when

decision-making is by the largest group possible, such as ‘mass

assemblies' of communities or workers. Obviously, we can't all have a

mass meeting across a city, region, or continent. So, while to be

present when a decision is made must be the best option, it's not always

possible. Therefore, any democratic process needs to take account of

those who are not there.

The best way to do this is, when a person must be appointed to a task,

they should be elected specifically to carry out our wishes - they

should be a ‘delegate'. This is very different from a ‘representative'

like today's MPs and union leaders - people who have complete power to

do what they like for a few years, including ordering us about. A

delegate has much more to offer than a representative, since a delegate

can be ‘mandated' - provided with a specific task or tasks to carry out.

This is important for those who cannot get to a meeting, but who still

want their views to be taken account of. What is more, a delegate is

‘recallable' - as soon as they do something that isn't in their mandate,

they can be held to account, and recalled and replaced if necessary.

A mass assembly should be structured so that it cannot be hi-jacked by

any group or individual. It is no place for would-be representatives or

their ilk, since hi-jacking is their speciality. Furthermore, delegates

are elected freely by those whose views they are mandated to put forward

and report back to those people afterwards. Having recallable,

accountable delegates is what makes our democracy ‘direct'. Your

delegate is your direct information link with the meetings you don't go

to, and someone you trust to keep information flowing both ways.

There are lots of possibilities for how, where and on what basis people

meet to decide how things should be. At a basic workplace or local

community level, the common factor is face-to-face familiarity with

neighbours and fellow workers. Above this, different groupings are

federated together. In fact, the eventual overall structure isn't as

important as the democratic methods. Being involved, either directly or

via a delegate, is fundamental to guarantee real democracy, rather than

the insult promoted by the state and its apologists, in which the vast

majority have no real say.

Democratising the future

Suppose your workplace, which prints books, is on the edge of town; your

trade union is next to useless; and your boss is polluting the local

river. Currently, the state, on behalf of us all, allows the boss to

pollute, even though, given a choice, no-one would give anyone

permission to pollute. But in this sham ‘democracy', the state

legislates against obstructing the business of making profit.

A meeting is called, and you and your workmates decide you can and

should stop this pollution. You agree to send a delegate to the town's

mass assembly to put forward the print workers' views. Your print shop

has adopted a direct democratic structure, ensuring two-way

communication via the mandated delegate. Operating in this way

safeguards democracy from those who will bend and distort it against the

collective interests. You can then ignore the traditional trade unions.

Instead, the print shop forms a workplace organisation based on the mass

assembly. The workers naturally and collectively form into one powerful

mass for action. Before long, being subjugated to the boss seems stupid,

so you begin to organise your workplace for yourselves without bosses.

Very quickly, deciding things for yourselves becomes second nature.

Planning and big decisions are discussed by everyone in regular

meetings, so everyone is an effective part of the whole. Also, everyone

gets the same out, with equal wages, time off, privileges and

opportunities, including a regular turn at the jobs you prefer.

Your print shop could communicate with bookshops, paper producers and

any other similar groups both in your own local area and around the

world. In this way, you could make sure that what is produced is

worthwhile and necessary, and that production methods are viable without

adverse consequences for workers and the environment. For instance, with

the heavy hand of capitalism lifted from your backs, you would choose

not to pollute your local river.

Of course, this little dream is just that at present, not least because

most of us have a gun at our head – the myth of the competitive market.

Capitalism dictates that those who succeed, those who make the most

profit, are those that cut down most on wages and environmental

protection. So, to keep your job in the print shop, you have to keep

your mouth shut about the pollution.

Our workplaces and our local areas can be democratically controlled, but

only when we are prepared to throw off the dead hand of the state. This

society stifles self-development in the mad dash to consumption suicide.

Breaking free and going for direct democracy is the only way to secure

the future for ourselves and our children – a future where you, us and

everyone else are included and taken account of – that is a democracy

worth having.

Planning basics

As outlined in section 2, anarcho-syndicalists wish to establish a

society without money, a libertarian communist society, where work is

done out of a sense of solidarity, rather than material reward, and

goods are distributed free in a system of allocation according to need.

To realise such a society, we propose a system of planned economic

activity.

Planning should not be seen as a chore or a dull, technical matter.

Economic planning that is genuinely democratic is a key pillar of the

new liberated, social existence which we envisage. In capitalism, the

individual is like an isolated atom buffeted by forces beyond its

control. Jobs and livelihoods, wealth and poverty, all depend on market

forces that we have no influence over. Under capitalism, the economy is

the master of the people. In a democratic, planned economy, the people

are the masters of the economy. In such a system, the individual

understands the role of their own labour in achieving democratically

agreed aims and objectives. They appreciate that the goods and services

they consume are part of a socially produced common stock which is

shared out by mutual agreement, rather than on the basis of competition

and the triumph of the most powerful.

The basis of planning lies in the relationship between workplaces and

communities. Workplaces inform communities what resources they have and

what they are able to produce. This information comes directly from the

workers themselves, not some layer of non-productive management removed

from the realities of the job, since it is workers who do the work and

know what can and can't be produced. Communities use this information to

come up with a plan, decided democratically, to give workplaces guidance

in their use of the available resources.

Guidance is also needed to indicate how much households should consume.

For example, what is the maximum number of new pairs of shoes a

household can reasonably allow themselves in a given year? Or the

maximum number of days foreign holiday? Or the number of years before

they allow themselves a new set of furniture? As far as possible, these

are voluntary ‘rations', decided democratically, but where shortage

exists, they might be compulsory.

Some sophistication is needed to run this ‘rationing' system. There is

no point in allocating everyone four eggs a week. Some people do not eat

eggs; others would prefer six but no cheese, and so on. In the case of

food, it might be a ration of calories and nutritional intake, taking

into account factors like age, height, special dietary and other needs.

People would be entitled to any common foodstuff that met these needs,

rather than being allocated quantities of specific foodstuffs.

Besides, not all goods are consumed by everyone. It is true that we all

need food and housing. Almost all of us need furniture, a carpet, a

fridge or an occasional holiday. It is relatively easy to calculate how

much of such products people need and allocate accordingly. However, not

everyone needs a violin, flying lessons or the resources to go on a

month long excursion to Outer Mongolia. In this case people might be

expected to prove a genuine need or strong interest before being

allocated the particular product or service. For instance, someone might

be expected to give a convincing account of what they intend to do with

a light aircraft pilot licence once they are qualified.

Allocation of goods can be computerised to record every product or

service a person takes or uses with the information also being stored on

cards to be presented when someone wants a product or service. The

purpose is to prevent very excessive consumption. For example, it allows

staff in common stores to query why someone might be requesting a new

suite six months after getting the previous one.

Non-economic issues

An effective plan that meets everybody's needs must be based on both

economic and non-economic factors, and must represent an interplay of

individual and collective needs, a balance between objective scientific

fact and subjective feelings and desires.

The environment is one of the most significant non-economic

considerations. The effect of production choices on levels of pollution

and the ecological system in general must be considered. Therefore mass

assemblies and delegate bodies will need access to scientific evidence,

gathered by environmentalist groups and other interested parties. For

instance, debates and decisions on switching from the internal

combustion engine to vehicles powered by hydrogen cell power, or

building a whole new infrastructure to produce electricity from

renewable sources, would definitely be required. The whole economy will

need to be geared to the elimination of pollution.

Take the print shop by the river where, under capitalism, the boss

pollutes the local river. After capitalism is overthrown, making profit

is a thing of the past, so there is no longer an incentive to produce

something ‘efficiently', if this causes environmental damage outweighing

the value of what is produced. The print workers' assembly decides the

only way to stop the pollution is to introduce a new non-polluting

production process. Delegates from the print shop contact other

enterprises that produce the necessary machinery and raw materials and

inform the community mass assembly of what they require to continue with

their work. This enters into the community's deliberations when it is

deciding on how to allocate resources and plan the economy.

Alternatively, environmentalists might take the lead, asking all print

shops to no longer use certain processes and chemicals. The print shops

are then called on to install new non-polluting processes, and inform

their local communities of what they need and how much they can produce

once the new processes are in place.

Workers' welfare is another important consideration. Society will have

to look at a range of jobs and decide whether the addition to human

happiness they create is worth the time and effort spent on them by

workers. Must new varieties of the same product be designed every year?

Do we need so much packaging? Do we really need mobile phones? The plan

must also take into account health and safety. Some production processes

require dangerous chemicals or unhealthy work practices. A plan that

maximises production may have profoundly negative effects on workers in

terms of long hours or stressful conditions. Information about the

effects of production decisions on workers' welfare can be gathered by

trade unions and communicated to workplaces and communities to help them

in their planning decisions.

There are many other non-economic considerations such as consumer safety

and the effect that the production of some products (for example motor

cars or television) have on the quality of community life.

Economic issues

Democratic planning is an attempt to find ways of using resources, both

natural and man-made, which best meet the needs of all the people. The

basic economic problem is that most economic inputs – land, capital,

machinery, raw materials, etc. – have different potential uses. In a

world where resources are limited, it is important to ensure we use

inputs to make a significant difference to people's well-being. So,

devising an economic plan involves deciding which projects to approve

and which to reject or postpone due to lack of the necessary resources.

Some socialists have argued that we live in a world of such abundance

that no economic choices need to be made. But we also live in a world

where large amounts of work are done by large numbers of people. For

economic inputs to be made useful labour is required. However, one of

the aims of anarcho-syndicalists is to reduce labour hours. In other

words, labour will not be so abundant, and, inevitably, choices about

what we need to consume and what we do not need to consume will have to

be made. To meet all the desires of every individual, workers would need

to work long hours, and this cannot be expected in an economy where

labour is voluntary.

Planning dynamics

In our model of democratic planning, the plan is a list, in order of

importance, of all the consumer goods and services the community needs.

Expanding production of products at the top of the list has priority

over those lower down. Once the priority list is agreed, enterprises use

it to organise production on their own initiative. People's day to day

work is in no way dictated by bureaucrats.

People must decide how to use scarce resources to best meet their needs.

If housing and text books are top priorities, then these get the first

call on resources. Production of products regarded as less useful should

only be increased if there are resources left once the higher priorities

are met.

When it comes to supplying resources, producers of products at the top

of the list get the first refusal. Naturally, this means that these

workplaces will find it easier to expand production than those who are

producing lower priority products. In a world based on solidarity,

people will only order what they are actually going to be able to use to

increase production in their workplace, and not wastefully over order

materials.

Take the print shop as an example. Text books have been given a high

priority, so schools order more from the publishers who, in turn, order

more from the print shop. This means that the print shop must do extra

work. On the other side of town is a furniture factory. To conserve

forests, wooden furniture gets a low priority to offset the effects of

printing more books. Timber workers therefore give priority to paper

manufacturers over furniture companies. Having less wood to work on,

furniture workers have less to do and the community will expect the

furniture industry to encourage some of its workers to seek employment

in other industries that need more labour. Workers in the furniture

factory in our town may decide to go and work in the print shop or in

some other place that requires more help. It is their choice where to

go, and they are not subject to any kind of compulsion.

Just setting priorities is not the whole story, however. Even if an

industry is producing a priority product, we do not want to swallow all

our resources to the exclusion of everything else. Therefore, there must

be some kind of limit on the production of products. For instance,

society might decide that, while textbooks are a priority, there is no

need to produce more than five million of them in the next year, so some

resources go to lower priority industries.

Calculating the cost

Priorities and targets, then, are part of the story, but we have yet to

completely solve the problem of resource allocation. Giving a high

priority to the production of textbooks is great, but we also need an

approximate idea of the resource cost of this high priority. Five

million books in the next year may be the ideal figure from the point of

view of the schools and colleges, but can this be afforded? How much

furniture production would be lost, and is this acceptable?

We have to juggle people's differing needs and desires with the

available resources. More than this, it is about calculating people's

needs, as well as the availability of labour, raw materials, etc. A

capitalist decides whether a project makes economic sense by calculating

the costs and benefits of different proposals in monetary terms. Prices

reflect three factors: the scarcity of inputs; the scarcity of final

products and services; and the strength of customer demand. While the

pricing system provides a means by which these factors are considered,

it remains a grossly inadequate way of deciding which projects to

approve or reject. Nevertheless, a substitute for pricing must be found

in a moneyless economy.

Simplistic answers such as ‘the workers will produce what people need,

and it will be obvious to everyone what this is' will not do. Trebling

the house building program in the next year may seem like a good idea,

but people might approve this without appreciating the vast amount of

time and resources necessary. It may leave virtually no resources to

build new schools, hospitals or other buildings needed by local

communities. It is clearly much better if resource costs can be

estimated prior to the start of the project.

As the price of inputs cannot be calculated in financial terms in a

libertarian communist economy, they are calculated in kind. This means

that costs and benefits of economic projects are calculated in terms of

their effect on the physical availability of other goods and services.

For example, the cost of producing 300 new houses might be calculated as

two unbuilt hospitals.

The only way to make these kinds of calculations across a whole economy

is through a computer model that can show the economic effects of

adopting a given set of priorities. It could, for instance, show how

many hospitals would be sacrificed if we want to give houses a higher

priority; or how much furniture production will drop if textbooks are

number five in our priority list and we produce five million of them.

To do this, the model needs information about what resources exist in

the economy as a whole; what resources are held in the different

workplaces; what labour exists, what kinds of skills workers possess and

what kind of jobs workers are looking for; what each workplace is

producing with the resources currently at its disposal; and,

importantly, what each workplace could produce if its resources were to

rise or fall. All this will enable the model to work out the effects on

one part of the economy of increasing production in another.

In our example, the computer might show that producing five million more

textbooks will mean diverting so much timber from the furniture industry

that long waiting lists would appear. The computer could generate an

alternative plan whereby only three million more textbooks are produced

and the loss of furniture is a lot less serious.

In a democratic system, the people must have a choice of different

plans. The use of modern computer technology can help this process

immensely. Though the job of modelling an entire economy in this way is

vast, modern computer technology is capable of meeting the challenge.

Once the plan is agreed, no more is needed from the computer model.

Enterprises just work according to the priorities that are laid down.

Timber workers know they have to give priority to supplying paper

producers rather than furniture makers. Workers do not need precise

directions from the computer – after all, the plan is based on the

predictions of the workers themselves about what they can do given

various allocations of resources. It is now just a matter of trying to

make these predictions happen.

Of course problems may occur and everything may not go quite as

intended. The old Soviet idea of a planning, where even the most minute

economic activity was completely predictable, belongs to the past. Any

prediction is an approximation and as new information comes in, models

and priorities must change. The point of democratic planning is to allow

the people to manage this business of dealing with unforeseen

circumstances and accidents. It is about ordinary people being able to

engage with the economic forces that affect their lives, rather than

being dominated by them.

Some might argue that this kind of planning is too complicated to be

really under the control of the people. The list of consumer goods and

services any economy creates runs into the hundreds of thousands.

However, imagine all the useless products, services and jobs which are

around today and which we will no longer bother with - moneylenders,

landlords, goods which don't work or don't do what they promise...

Of course, planned production must be summarised in a form which relates

to people's everyday experiences. So, for example, rather than

describing fruit juice production in terms of x thousand litres for the

coming year, using the equivalent consumption per week for a typical

household instead is much more digestible. These production targets will

also be the voluntary shares once the plan is approved, showing that

consuming more than this amount will be depriving others of the product

and creating shortages.

Economic democracy

Those on the right argue that economic planning is exposed by the

notorious shortages and inefficiency of the Soviet Bloc economies.

However, planning is required in all economies; the difference is that

planning in a libertarian communist society is not a top-down,

hierarchical affair. In the former Soviet Union, binding orders on every

conceivable economic activity were passed down from the centre to

individual enterprises. In an economy where 12 million different

products were being made, there was no way that this process could be

efficient. There is no benefit in a central body deciding production

down to the last tube of toothpaste.

Democratic planning is different in other vital ways. The kind of

technology necessary for democratic planning just was not available in

the old Soviet Union, where the use of computers in planning, even in

the 1980s, was restricted by the much lower power computers had back

then. Nor was there widespread computer networking, necessary to link up

workplaces with the central computer system that devises the plan

models, until after the fall of the Soviet Union.

Secondly, Soviet workers were part of a system where the needs of the

vast Soviet military-industrial complex were primary, while the

luxurious lifestyles of the elite bureaucracy came a close second.

Workers had no say in what happened, and derived little benefit from

their work. This led to an all-pervasive cynicism, so they did as little

as possible, while managers told the state their enterprises could

produce much less than was actually the case, so their plan targets

would be easy to achieve. They also overestimated the resources they

needed, so there would be no pressure to use them efficiently. This

created both waste and shortages. In a truly democratic system to which

people are committed, this kind of behaviour would be rare.

Planning in a libertarian communist society is a synthesis of the local

and the global. Its basis is solidarity, popular decision-making and the

involvement of all. It reconciles the need for a broad overview of

activity in the economy as a whole, with the need for initiative and

feedback from individual workers' collectives and local communities. It

also combines the need for technical systems of resource allocation –

planning – with the need to keep everything under direct democratic

control. Everyone is involved in how things work, not just a bunch of

technocrats. As such, it is a practical means of creating a genuine

economic democracy.

Conclusion

There is a lot that can be said about future ideas for economies. Some

of it is merely musing; some is more concrete; and some is fundamentally

necessary. Having said this, there is clearly no one true ‘blueprint'

for a libertarian communist economy – local communities and federations

of communities will have autonomy as to what economic systems they use,

subject to the basic anarcho-syndicalist principles. And here lies what

is fundamental. If we stick to basic key principles, everything else

will work. What are these principles? Well, we have discussed them at

some length, but here is a handy summary of where we have got to.

While any modern economy will be complex, the simplicity of a future

anarcho-syndicalist economy lies in the fact that it will be defined by

a few basic principles. It will be a true anarcho-syndicalist economy

if:

capital.

democratically by workers.

recallable, accountable delegates who are elected by mass meetings in

the workplace or community.

our own living space, personal possessions, etc.).

Money, wages and prices do not exist.

centralised. Regional or wider-scale planning is for complex and larger

scale modes of production. Local production and consumption is not

subject to regional planning, but is on the basis of self-sufficiency.

An economy that operates under these principles is one that is a lot

more desirable and effective in ensuring quality of life than the

current capitalist chaos. There are lots of ways in which people will

feel the incentive to work voluntarily, and there are lots of different

ways in which local and regional economies might work. Some people may

migrate to economies which suit them. Some economies may be simpler,

based on self-sufficiency more than anything else; others will be more

integrated and produce complex goods. The options are many, but the

principles will ensure that everyone has the time and the inclination to

get involved in planning and participating in their economy – a far cry

from the present rotten, corrupt, and cynically selfish system we have

the misfortune to be saddled with.

Getting from here to there is not going to be easy, but capitalism was

created by humanity and can be replaced by humanity. The collective act

of wrenching control of our own economic lives from the hands of

capitalism is the long-overdue revolution we so desperately need. The

success of replacing capitalism will be measured by how much it leads to

us taking control of our own destiny, rather than simply passing it on

to some other power, as previous failed revolutions have done. Real

progress is best made not by producing detailed blueprints (for that way

lies the slide into abstract politics and leadership), but by sticking

to basic principles, and concentrating our efforts on taking action for

real change. Real democracy requires real solidarity - and that means

agreeing the basics and then trusting ourselves and the rest of humanity

to get on with it. Keeping it real is the key.