Categories
Interviews Post-Capitalist Vision

Yanis Varoufakis Interview on Another Now – Part 1 – Nationalization, Unemployment, Climate, Public Finance, Debt

Editor’s note: discussion topics include the role of nationalization in the Another Now model (AN), unemployment in AN, whether AN can overcome the climate crisis, interest in AN, public finance in AN, the scope for and means of debt cancellation in AN.

[After the Oligarchy] Hello everybody, this is After The Oligarchy. Today I’m speaking with Yanis Varoufakis

Yanis Varoufakis is the former Greek Finance Minister, a professor of economics, co-founder of DiEM25 and the Progressive International, leader of MERA25, and a member of Greek parliament.

Today’s conversation is in association with mέta: the Centre for Post-Capitalist Civilization. And the topic is Yanis’s latest book Another Now, published in 2020, which presents a vision of a post-capitalist society. It’s an advanced discussion of the model proposed in that book. If you want an introduction, I wrote an essay and made a 40-minute video doing just that. Though I do recommend that you eventually read the book itself, it’s very good.

Yanis Varoufakis thank you for joining me.

[Yanis Varoufakis] Well thank you for doing everything you’ve done, it’s remarkable what you did, thank you.

[AO] Oh yeah my pleasure, my pleasure absolutely.

I have many questions to ask you, including from some viewers, but we can only cover so much in one interview. So we’ll see how we get on.

Q1 – The first question is about nationalization. In Another Now you briefly mentioned that utilities have been nationalized and I was just wondering what is and what is not nationalized? Because ‘utility’ usually refers to things like electricity, gas, sewage, rubbish, and so forth, but … if you want to jump in you can.

[YV] In the book, what I do is I try to tell a story of how we could change the very fabric of the social economic system that we live in by starting from the fact that these were all nationalized utilities, in Ireland, in Britain, Germany, everywhere, they were created by the state primarily because no private business was interested in creating them. Even the BBC was created by the BBC before there was private radio because the fixed costs were too large.

And then in the 1970s with the onslaught of neoliberalism, with Margaret thatcher in Britain, with Ronald Reagan in the United States a bit later in 1980, you have the privatization of all utilities. Effectively the conversion of state monopolies into private monopolies that were presented as marketized, decentralized, but were not really. I mean if you look at the electricity grid and the electricity network in our countries they are still monopolies except that there is an infrastructure of speculation on energy prices. Which is today, given the rise in energy prices and inflation in the post-pandemic world, a clear and present danger to the fabric of society.

So as far as I’m concerned the answer to this is not a re-nationalization but the answer that I propose in the book – and you know this very well because you’ve done a great job at summarizing the blueprint that I’m putting forward – so instead of nationalizing the privatized utilities, I am proposing the socialization of all companies not just the former nationalized utilities or nationally state-owned utilities. Because I’m challenging the very notion of tradable shares. Something we take for granted, that the property rights over companies are segmented in tiny little pieces of paper or digital pieces they call ‘shares’ and that these shares are traded anonymously in markets called ‘share markets’. I challenge that very notion. I think that in the end it’s even antithetical to the mentality, the philosophy, of the original proponents of market societies like Adam Smith.

Categories
Post-Capitalist Vision

Post-Capitalism: Another Now by Yanis Varoufakis – Model Summary

Introduction

In this essay, we will summarize the model presented in Another Now, a proposal for a post-capitalist society. This summary is also available in video format (see video embedded below). However, the essay is definitive.

In 2020, Yanis Varoufakis, professor of economics, former Greek finance minister, co-founder of DiEM25 and the Progressive International, general secretary of MERA25, and member of parliament in Greece, published the book Another Now: Dispatches from an Alternative Present. The book discusses an alternate history where humanity broke with capitalism after the 2008 financial crisis. It’s a brilliant book, highly readable, inventive, and likely to appeal to general audience, so I recommend that you read it. This essay will present an abstract summary of the model found in those pages.

Before we begin though, some clarifications are needed.

Firstly, this is not a summary of the book Another Now. Another Now is written in a science fiction format with a lot of dialogue between characters with different opinions. In the book the characters find themselves in contact with another reality i.e Another Now, a post-capitalist reality. The details of that new society are scattered throughout the narrative. So I’m only going to present that alternate reality here. I will not say anything about the characters. And for the most part I’m not going to summarize the arguments made in the book, just the conclusions.

Secondly, this is only a summary of the economic model of Another Now. I’m not going to discuss activism, strategy, and transition, even though these topics are discussed in the book and they are crucially important.

Thirdly, this isn’t a review, analysis, critique, or endorsement. I will only provide an exposition of the model.

Brevity is the reason for the foregoing. Those are topics for another date.

Lastly, this essay emphasizes accuracy and completeness. However, it will be very clear and will make extensive use of illustrations. If you follow you’ll understand and by the end you’ll be an expert in Another Now.

Now, before we dive into the details I want to quickly give you the gist of Another Now. It’s a kind of socialism. There’s a big emphasis on properly functioning markets, on worker self-management, on radically reforming finance (especially through a public payment system), on international economic institutions, on the public ownership of land, on digital data rights, and there is extensive use of sortition for regulation and governance.

If you haven’t come across the word ‘sortition’, it means picking people at random (sorting people). You can use many different words: sortition, lottery, by lot. Effectively it means picking people at random. And this is the technique which was used predominantly in the Athenian democracy.

The main headings for the essay are as follows. I grouped the proposals in Another Now into five main categories:

  1. Production Units & Regulation
  2. Finance
  3. Digital Information
  4. Land & Immigration
  5. International Trade and Development.
Figure 0 – Summary diagram of some key features of Another Now.

Before moving systematically through those headings, I want to give you a global picture of the model. Production units are divided into a nationalized sector, a worker-owned sector, and a domestic economy. And these production units are regulated by Social Accountability Juries. The central bank has a very important role, with a public payment system, local digital currencies, a private credit system, and each resident having an account at the central bank (broken into three sections with different functions). People have full property rights over their digital information and its use is controlled by a Sovereign Data Fund and micro-payment system. Land is publicly owned and is governed by County Associations, and immigration is managed regionally. Lastly, there’s a relation between the nation state and other states through the International Monetary Project, which regulates international trade and economic development.

Don’t worry, I don’t expect you to understand this yet. All will be explained.