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Title: The Economy of Freedom
Author: Vadim Damier
Date: 07/23/2009
Language: en
Topics: anarcho-syndicalism, planning, economics, counter-economics
Source: https://aitrus.info/node/2595
Notes: Thanks for translation to comrade Stephen Shenfield

Vadim Damier

The Economy of Freedom

The collapse of the state-capitalist dictatorships in Eastern Europe and

the former Soviet Union proved that any attempts to combine a just

social ideal with preservation of the state and commodity-money (market)

relations are doomed to failure. Communist anarchism has always

predicted that Marxist utopias would come to precisely such an end. It

has not been discredited in the least by the experience of social

democracy and party-state “communism”, and there is therefore no need to

“supplement” it with borrowings from these doctrines, which have

suffered complete collapse.

One such borrowing is the idea of “market socialism”. It was born in the

heads of social-democratic theorists and taken on board by reformers in

the ruling parties, who however did not save the “socialist camp” but

hastened economic disaster. Nevertheless, many leftists, including some

anarchists, have taken up the idea of combining socialism and the

market, viewing it as an alternative to centralized “planning”.

However, attempts by anti-state, anti-authoritarian socialists to

combine a just social order with market relations have always failed.

They have led either to a sort of “collective capitalism” (as happened,

according to the descriptions of Gaston Leval and D. Abad de Santillan,

to certain collectivized enterprises during the Spanish revolution: they

preserved money and the wages system and continued to conduct business

egoistically, on their own responsibility) or to restricted

self-management with expanded powers for managers (for the sake of

faster and more “efficient” decision-making in the market, as has

occurred in the kibbutzim).

Even the “freest” of market relations are completely incompatible with

solidarity, ethics, and freedom itself. The French philosopher and

ecologist André Gorz demonstrated in his book Critique of Economic

Reason that under both the centralized bureaucratic and the market

system man’s will is fettered and his activity and the entire life of

society slip from under his conscious control. Thus, when people are

subordinated to the impersonal laws of the market, which do not depend

on them and cannot be controlled, the results of individuals’

uncoordinated activity do not correspond to their will and desire. These

results are a matter of chance, as in thermodynamics. However, freedom

is the possibility of conscious control over one’s own life

(self-management).

The social psychologist Erich Fromm (To Have Or To Be) gave a brilliant

analysis of the so-called “market character”, showing how market

relations corrupt and deform the human personality: it turns into an

object of commerce, a commodity that strives to sell itself to greater

advantage and develops within itself only those qualities which can be

“purchased”. All relations among people are subordinated to the

egoistic, utilitarian principles of profitability, all activity becomes

prostitution, and mutual aid and solidarity are replaced by a war of

“all against all” waged by embittered and mutually envious individuals.

Market relations cannot exist in a truly free society based on

solidarity. They will inevitably destroy such a society.

Some people propose retaining the market (“market socialist”) model only

for a “transitional” period before anarcho-communism is established,

with payment “according to the quantity and quality of work done”. They

repeat Marxist arguments about the difference between “socialism” and

“communism”, how the former will “grow over” into the latter, and the

conditions under which this will take place, such as a higher

productivity of labour, abundance and a higher level of consciousness.

These purely productivist arguments might still have been seriously

discussed thirty years ago, before the onset of the ecological crisis.

Today it is absolutely clear that a just society can be built only on

the basis of ecological harmony. If humanity wishes to survive, then

there can be no question of increasing – or in some sectors even of

maintaining – the level of labour productivity of developed capitalism.

And those who connect communism with “abundance” in the traditional

sense of the word are at risk of missing the boat altogether: unlimited

economic growth within the limited system of Planet Earth is impossible.

It is also hard to agree with the idea that “payment according to the

quantity and quality of work done” is the most effective and acceptable

way to avoid an unmotivated and passive workforce. People become

indifferent toward their own work when they are unable to control its

course and results and when they have no sense of its social

significance or of the meaning and purpose of the labour process as a

whole. This is natural given the alienation and detailed (“Taylorist”)

division of labour of contemporary industrial production, and no

“material incentives” can make the least difference to the situation.

And yet in the agrarian communes of revolutionary Spain and in kibbutzim

with a communist system of distribution people understood why and for

whom they were working, and their work was no worse or less effective

than in capitalist firms.

The idea of payment according to the quantity and quality of work done

can be taken seriously only by those who follow the Marxists in

supposing that the quantity and quality of work done can be measured. In

reality this is impossible. All socially necessary work is of equal

value: there is no way, for instance, to determine how much work by an

engineer is equivalent to a certain amount of work by a farmer or a bus

driver. The productivity of work may be influenced by chance or depend

on numerous factors that cannot be taken into account. Finally, any

manufactured product contains the work of many thousands of people, even

of several generations. And who, indeed, is going to calculate this

“quantity and quality of work”? A new state authority?

Attempts to establish a new social hierarchy on the basis of “work done”

will undermine equality and solidarity and lead to the rise of an

empowered and privileged elite of the most “highly skilled” and

“successful” workers. And to defend the power and privileges of the new

“Stakhanovites” a state will again be needed.

Of course, in a free anarcho-communist society there will at first still

be individual household enterprises that do not exploit the labour of

others – small farmers and people engaged in various crafts. They will

not be forcibly expropriated, but will gradually form cooperatives of

their own free will. But it would be a very grave error to build

relations in the already socialized sector of the economy on the same

basis as in the individual sector. If this is done, the individual

sector will inevitably gain control over the economy as a whole. Until

complete socialization is achieved, we shall be dealing with two quite

different (though interacting) systems of production. In the larger,

socialized sector, communist principles of distribution must be

established from the very start – free access to those things which are

available in abundance and social distribution of everything else in

proportion to individual needs (Kropotkin): from each according to

individual ability, to each according to individual need (the principle

of the kibbutz).

Relations with individual household enterprises may be built on the

basis of direct exchange of products, with access of these enterprises

to socialized goods and services (transport, etc.) regulated by

agreement. Cooperatives should be given preferential treatment in this

respect.

From the very start, relations within the socialized (communist) sector

will be not market relations but oriented toward the needs of real

people. The economy of the free society will be planned in the true

meaning of the word. “Planning” under the state-capitalist dictatorship

was a sham, inasmuch as it was carried out not from below, “from the

consumer”, but from above, by the Centre. In the free society of the

future, by contrast, the associated producers and consumers, acting

together in a spirit of solidarity, will be able to determine what,

where and how to produce and consume and ensure – on the basis of free

agreement “from the bottom up” – coordination between needs and

production capacities.

The methods of such “planning from below” are suggested by the practical

experience of really existing communes and consumer cooperatives.

Consumers will aggregate their needs at regular general assemblies of

local associations and then coordinate these decisions with production

capacities in economic bodies of the communes or at their general

meetings with delegates from the associated producers. The communes,

united in regional and interregional federations, and the self-managing

producers and consumers, aggregating and coordinating needs and

capacities with the aid of statistics, acting through delegates at

congresses of communes and in economic councils at various levels, will

be able to develop larger-scale production facilities that will serve

all or a number of communes.

“Planning” of the economy of an anarchist society must not be

centralized. By no means everything needs to be coordinated at the

regional, continental or planetary level. A different principle is

appropriate here. A region must not assume responsibility for matters

that a single commune can handle by itself without affecting the

interests of others. Likewise, a region can resolve most of its problems

for itself. The economy of anarchism will therefore be oriented toward

the greatest possible (although, of course, not complete)

self-provision. Among other things, this will mitigate ecological,

raw-material and transport problems and bring production near to the

consumer. Many of the economic and ecological problems of contemporary

society arise because what is produced is not what is really needed by

specific consumers but what dispersed producers think they might need.

That is, no one knows in advance whether people need this or that

product; this is determined after the fact by the market or by a

bureaucrat.

In a free ecological society everything must be otherwise. In a free

society, the economy begins with the consumer. Consumer and residents’

associations, together with the syndicates of the staff of distribution

centres in urban districts and rural areas, assess the current and

future needs of residents (something like the system of commercial

orders) and transmit statistical data to the economic council of the

commune, which together with delegates from the syndicates and from

consumer associations and relying on statistics determine which of its

necessities the commune can produce by its own efforts, which will

require external inputs or participation, and what goods or services the

commune can provide to the residents of other communes.

What the commune is able to do for itself by its own efforts is done at

the local level and does not require coordination with others.

Everything else is coordinated with other communes at the necessary

level. Coordination is established with the aid of statistics at

economic congresses of delegates from communes and then ratified by the

communes themselves. (No one can compel a reluctant commune to

participate in one or another joint project, but in that case no one can

compel other communes to continue dealing with that commune.)

Thus, what is produced must be precisely what is really needed by

specific people or groups of people. Distribution will be carried out

through the same distribution centres that collect consumer information,

without charge but upon the consumer presenting an individual card

indicating that he or she has contributed the working time agreed by

members of the commune, or a child’s card, or a pensioner’s card (for

the sick and others unable to work).

As the new social relations develop, it will become possible to break up

huge cities, ecologize social and individual life, and redistribute work

within society (including between the sexes) so that gradually the rigid

specialization of work will recede into the past and work will turn into

creative and pleasurable play.

The economic system of the new society can only be an economy of

universal self-management, an economy of freedom. Production should be

regulated not by professional managers, bureaucrats or directors, but by

working people themselves. General economic decisions will be taken by

the whole population – at the general assemblies of consumer

associations and communes or (through delegates with an imperative

mandate) at their congresses, while the direct management of production

will be concentrated in the hands of self-managing work collectives and

technical councils and syndicates created by them, united in a dual

(sectoral and territorial) federation.

These, of course, are only general and fundamental points. There are

numerous details that cannot be anticipated, let alone discussed in a

short article. Answers will arise out of the practice of a free society.

For now it is important to recognize one thing: people who wish to

survive under decent conditions will have to renounce dominion over

nature and over their fellow humans. But this means a radical change in

the methods and processes for taking social and economic decisions, the

replacement of external regulation (by a bureaucracy or the spontaneous

laws of the market) by self-management and “planning” from below on the

basis of federative agreements.

In other words, an anarchist society will be a society without

bureaucracy, without money and without the market – or it will not be at

all.