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.

Categories
Interviews Post-Capitalist Vision

Paul Cockshott Interview on Towards a New Socialism – Part 1 – Planning, Self-Employment, IP, Media, Privacy, Transition

Editor’s note: discussion topics include the motivation for economic planning versus market socialism, self-employment in the Towards A New Socialism model (TNS), intellectual property in TNS, independence of media in TNS, efficiency in TNS, labour credits and privacy in TNS, the weaknesses of TNS, how not to implement TNS in a socialist transition, and a hypothetical TNS research programme.

[After the Oligarchy] I’m talking to Paul Cockshott today. I’m just going to read his bio from a book How the World Works which I’m reading at the moment (which is very good): Paul Cockshott is a computer engineer working on computer design and teaching computer science at universities in Scotland. Named on 52 patents, his research covers robotics, computer parallelism, 3D TV, foundations of computability, and data compression. His books include Towards a New Socialism, Classical Econophysics, and Computation and its Limits.

Today we’re going to be talking about the book Towards a New Socialism written by Paul Cockshott and Allin Cottrell, published in 1993. There the authors present a bold vision of a democratically planned economy using computerized labour time. In this interview we’ll be discussing some more advanced questions about that model so I recommend that you read the book to really understand what we’re talking about.

You can also watch some excellent videos on Dr. Cockshott’s YouTube channel, here is a link to that, and his website and blog.

[Paul Cockshott] Just seeing if I had a copy of the book but I don’t seem to have one. I can’t wave one around here …

[AO] I have one actually … do I? Yeah I have one here so it’s all right. Look there it is!   

Dr. Paul Cockshott thank you very much for joining me.

1 – So we’ll begin with the first question, a more general one. Some advocates of market socialism say that ‘central planning is a solution looking for a problem’. How would you answer in response to an advocate of the most sophisticated and radical kinds of market socialism? A critic might say something like ‘well, yes, there can be direct state provision of all necessities and control key sectors, but once working-class incomes are substantially increased due to worker self-management of firms, suppression of rentiers, plus state regulation of the market, a Job Guarantee, and so forth, there’s no need to have a society which uses central computerized planning and labour time. How would you respond to that?

[PC] Well my feeling is that whilst a Yugoslav-type system would be a considerable advance for most people, the Yugoslav economy – which is the historical example we’ve got of such a model – had a series of contradictions which developed over time. One of them was that because it is a market system the market does not regulate total demand for labour to be equal to the number of people wanting to work and there was an unemployment problem in Yugoslavia because of that. There was never an unemployment problem in the Soviet Union, for example. And the solution to it during the 1960s and 70s was emigration to Germany so it can’t be said to have really solved the problem of providing full employment for everyone.

Now the second point is that over time you also got the build-up of increasing regional disparities. These regional disparities became so intense that the conflicts associated with them eventually led to the breakup of the state. And the problem is that market economies tend to lead to uneven development – geographically uneven development – and the state can survive if it’s a strong centralized state that holds the country together and is not threatened but it certainly proved to be a critical failure in the Yugoslav example.

More generally if you say there’s going to be a job guarantee what does that job guarantee mean? How is the job guarantee going to be met? Is it going to be met by the state expanding employment in state industries? In which case you have the progressive replacement of a cooperative sector with a state sector.

The next issue is how does such a market socialist system adapt to externally imposed imperatives? Now, historically, the externally imposed imperatives have been to industrialize as rapidly as possible, for example, but at the moment the externally imposed imperatives are to transform the whole economy within a very short time from one based on fossil fuels to one based on non-fossil fuels. Now that is an in-kind constraint. It’s a physical constraint. It’s not a constraint that is readily addressed by market means. Any attempt to address it by market means is an indirect dressing up of state planning via market incentives. The state plans to do something and has rather inefficiently to try to create a set of market incentives which realize the plan.

Now we know that for the last couple of decades, states have formally been agreeing to reduce carbon output. And following the neoliberal doctrine that everything has got to be done by market incentives, attempts have been made to do this by market incentives. And in general the performance has not been good