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Michel Bauwens * Political Scenarios for a peer to peer world (was: [ox-en] Conference documentation)



Hi list!

Here is the documentation for Michel's presentation in Manchester last
year. The pictures are in the PDF at the conference documentation
page. Below is a paraphrased plain text version of the slides.


						Grüße

						Stefan

=== 8< === 8< === 8< === 8< === 8< === 8< === 8< === 8< === 8< === 8< ===

The P2P 'Tipping Point'
=======================

:Author: Michel Bauwens

* The most profound finding of the 2006 Edelman Trust Barometer is
  that in six of the 11 countries surveyed, the "person like yourself
  or your peer" is seen as the most credible spokesperson about a
  company and among the top three spokespeople in every country
  surveyed. This has advanced steadily over the past three years.

* In the US, for example, the "person like yourself or your peer" was
  only trusted by 22% of respondents as recently as 2003, while in
  this year's study, 68% of respondents said they trusted a peer.
  Contrast that to the CEO, who ranks in the bottom half of credible
  sources in all countries, at 28% trust in the US, near the level of
  lawyers and legislators. In China, the "person like yourself or your
  peer" is trusted by 54% of respondents, compared to the next highest
  spokesperson, a doctor, at 43%.

* "only 13% of consumers say they buy products because of their ads.
  Contrast that to 60% of small business owners in North America that
  say they use peer recommendations to make their buying decisions and
  over 70% of 18-35 year olds who report the same for their media
  purchases."

1. Understanding P2P
--------------------

* P2P is the relational dynamic at work in distributed networks

* Hierarchical, de-centralized networks, distributed networks

Levy: from the molar to the molecular
-------------------------------------

.. list-table::

   * *
     * Archaic
     * Molar
     * Molecular 

   * * Life
     * Natural Selection (natural time)
     * Artificial Selection (generationa l time)
     * Genetic splicing (real-time)

   * * Matter
     * Mechanical (outside)
     * Thermo- Dynamic (Warming)
     * Nanotech (cold)

   * * Information
     * Somatic (co-presence)
     * Mediatic (mass)
     * Digital 

   * * Human Groups
     * Organic
     * Organizational
     * Selforganized

Complexity and Hierarchy
------------------------

[see slide 5]

Usage of P2P depends on consciousness
-------------------------------------

[see slide 6]

P2P Social Processes
--------------------

1. The ability to produce in common: Peer Production as a third mode
   of production

2. The ability by participants to manage distributed projects by
   themselves: Peer Governance as a third mode of governance

3. The ability to protect the common project from private
   appropriation: Peer Property as a third mode of nonexclusionary
   property

Peer Governance as 3rd modality
-------------------------------

.. list-table::

   * *
     * Centralized Hierarchy
     * Decentralized Heterarchy
     * Distributed Autonomy

   * * Economics
     * Centralized Planning
     * Market
     * Peer Production

   * * Politics
     * Absolute monarchy
     * Separation of powers
     * Peer Governance

   * * Property
     * Collective State
     * Private Exclusionary
     * Common Inclusionary Peer Property

* Conclusion: P2P is a third mode of production, governance, and
  property

The Revolution of Equipotentiality
----------------------------------

  "....People would experience others as equals in the sense of their
  being both superior and inferior to themselves in varying skills and
  areas of endeavor (intellectually, emotionally, artistically,
  mechanically, interpersonally, and so forth), but with none of those
  skills being absolutely higher or better than others..."

  -- Jorge Ferrer

Characteristics of Peer Production
----------------------------------

* No division of labour, but distribution of labour: equipotentiality

* No exclusivity, but inclusivity: anticredentialism

* No composite tasks, but granular tasks: self-selection

* No products, but always unfinished 'artefacts'

* No a priori, but a posteriori distributed control: communal
  validation (collective choice systems, algorithms)

* No panoptism, but holoptism: participation capture, usage is
  production

* Not owned, but shared content

Conditions for Succes
---------------------

* Benkler: 3 characteristics of successul group efforts:

  1. "must be modular. That is, they must be divisible into components,
     or modules, each of which can be produced independently of the
     production of the others. This enables production to be
     incremental and asynchronous, pooling the efforts of different
     people, with different capabilities, who are available at
     different times."

  2. "For a peer production process to pool successfully a relatively
     large number of contributors, the modules should be predominately
     fine-grained, or small size. This allows the project to capture
     contributions from large numbers of contributors whose motivation
     levels will not sustain anything more than small efforts toward
     the project ...."

  3. "... a successful peer production enterprise must have low-cost
     integration, which includes both quality control over the modules
     and a mechanism for integrating the contributions into the
     finished product, while defending "itself against incompetent or
     malicious contributors.

The Circulation of the Common
-----------------------------

* Peer production needs open and free access to the raw material for
  its production: open/free paradigm and movements

* Peer Governance is the participatory process for the production of
  the common: the participatory/cooperation paradigms and movements

  * "when costs of participation are low enough, any motivation may be
    sufficient to lead to a contribution."

* Peer Property uses new legal and institutional formats to protect
  its production: the Commons-based paradigms and movements

* The Common Property format creates open/free raw material: the viral
  circle spirals onward

The Evolution of Hierarchy
--------------------------

.. list-table::

   * *
     * Degrees of Moral Insight
     * Relationship between hierarchy, cooperation, autonomy

   * * Premodern
     * no rights of political participation
     * Hierarchy defines, controls and constrains co-operation and
       autonomy

   * * Early Modern
     * political participation through representation
     * Hierarchy empowers a measure of co-operation and autonomy in
       the political sphere only

   * * Late Modern
     * political representation with varying degrees of wider
       participation
     * Hierarchy empowers a measure of co-operation and autonomy in
       the political sphere and in varying degrees in other spheres

   * * P2P Era
     * equipotential rights of participation of everyone in every
       field
     * The sole role of hierarchy is in its spontaneous emergence in
       the initiation and continuous flowering of
       autonomy-in-co-operation in all spheres of human endeavor

-- by John Heron

Characteristics of P2P Hierarchy
--------------------------------

* Usually consists of a core leadership embodying the original aims of
  the project, sometimes - the 'benevolent dictator'

  * Linux: coders - trusted Lieutenants - Linus Torvalds

  * Wikipedia: contributors - core editors - Jimmy Wales

* Teams are led by flexible meritocratic leaders: jazz band logic

* Principle of non-dependence or reverse dependence

* Large projects are led by a non-profit foundation - possibility of
  corporate spin-offs

Evolution of Cooperation
------------------------

"it's no longer about incentives, but about removing impediments"

.. list-table::

   * * Time frame / Typology
     * Cooperation & Motivation Formats
     * Game Typology
     * Quality of Cooperation

   * * Pre-modern (feudal, imperial)
     * Adversarial Extrinsic negative
     * Zero Sum: Win-Lose "Power Game"
     * Low, 1[PHONE NUMBER REMOVED]<2

   * * Modern (market, industrial)
     * Neutral Extrinsic positive
     * Zero Sum: Win-win: Draw "Money Game"
     * Average, 1[PHONE NUMBER REMOVED]=2

   * * P2P era
     * Synergistic Intrinsic positive
     * The 4 wins "Wisdom Game"
     * High, 1[PHONE NUMBER REMOVED]>2

P2P as a new way of working
---------------------------

.. list-table::

   * * A few people do all the work
     * Many people do a little of the work

   * * You have to pay all of them
     * You don't have to pay most of them

   * * It's hard to get involved
     * It's easy to get involved

   * * Support from people you know
     * Support from a legion of strangers

Peer Property
-------------

* Universal common property regimes are different from private
  property and public collective property

* Individual authorship + share-alike + free distributed access

* Examples:

  1) Creative Commons for individual expression and sharing

  2) GPL for creations of 'Commons'

Part Two: P2P Business Models
-----------------------------

PRECONDITIONS FOR PEER PRODUCTION: 

* Abundance/Surplus/Distribution of intellect

* Abundance/Distribution of the means of information production and
  sharing

* Lowering of 'need for capital', which becomes a posteriori, not a
  priori condition for success; entrepreneurship is divorcing from
  capitalism

* Conclusion: the treshold of participation, i.e. the capability to
  bypass centralized capital outlays is diminishing in human, physical
  and financial capital

Why P2P will grow
-----------------

[see slide 20]

Conditions for expansion of 'physical' peer production
------------------------------------------------------

* The 'distribution of everything': further distributive advances in
  financial and industrial capital

  * Desktop manufacturing, fabbing, multi-purpose machinery,
    implications of nanotech/biotech for distributed production

* Separating the design and material production phase of the
  industrial process: open design communities with built-only markets

* Finding integrated processes for the physical, logical, and digital
  'commons' (e.g. Semapedia, German White Bicycle program,
  Bookcrossings)

Striking a Critical Balance between Giving It Away and Making Money...
----------------------------------------------------------------------

[see slide 22]

...And Utilizing a Sound Business Model to Stay on Track

The role of capital?
--------------------

* The cost of starting an internet company have gone down by 80% over
  the last 8 years

* "Companies no longer need to raise lots of cash, no longer need lots
  of people, no longer need to even directly sell anything at all to
  be considered successful. They need revenue, of course, but that's
  mainly through advertising. And they need to create something people
  want to use. But Super Bowl ads? Forget those."

* "So there is plenty of money available -- nearly $1 trillion -- but
  it is coming at a time when, as I have just described, a whole new
  class of start-ups has appeared that doesn't want VC money -- at
  least not very much of it."

* Conclusion:

  1) emergence of 'non-capitalist' social entrepreneurs

  2) capital needed 'a posteriori', after prior success

The Laws of Asymmetric Competition
----------------------------------

1. In a competition between a for-profit entity with closed
   proprietary strategies, and a for-benefit institution working with
   a community and a commons, the latter will tend to win out

2. In a competition between for profit companies, those using
   open/free, participatory, and commons oriented strategies will tend
   to win out

User vs. corporate typology
---------------------------

.. list-table::

   * * Type of Users
     * Type of Corporation

   * * Prosumer Mode
     * Crowdsourcing

   * * Swarming Mode
     * Platform Enablers

   * * Community Mode
     * Commons-dependent

Mixing Openness and Closedness
------------------------------

* Joe West: 

* "in standardization, firms face an inherent conflict between value
  creation and value capture. A completely open standard creates lots
  of value, none of which can be captured; a completely closed
  standard captures 100 percent of no value created. So a
  profit-maximizing firm must seek an intermediate point that
  partially accomplishes both goals.

* Thus to pay the bills, there has to be value capture somewhere:
  everything has some level of openness and some level of
  proprietary-ness. Typically, standards that are open in one area are
  often not open in another."

Corporate Co-Creation Strategies
--------------------------------

The Direct Economy Model of Xavier Comtesse 

* Passive consumption: The consumer is getting products or services
  with no real interaction and no real choice. He has to take whatever
  is available.

* Self Service: The consumer is now given the ability to choose
  between various products or services. This first step is already a
  huge step forward, as the consumer can go around the vendor to pick
  and choose what he wants.

* DIY: Do It Yourself: At this level, the consumer starts getting
  involved in the value chain. This is what IKEA offers, where you are
  not just buying a product, you are actually also delivering it to
  your home and building it yourself. This case is an example of the
  first disruption from the standard retail value chain.

* Co-design: At this level, the consumer starts adding value by
  customizing the product and therefore defining his needs himself (as
  opposed to buying a product defined by the product management team).
  This is what Dell is asking from customers when they have to pick
  and choose options to build a computer.

* Co-creation: This is the ultimate level of involvement, where the
  consumer is actually involved in the design of the product or
  service itself. This is what Open Source does for developers, and
  what Wikipedia does for knowledge consumers. Similarly Procter and
  Gamble has a "Connect and Develop" program that lets innovators
  define products.

Autonomy in Production
----------------------

The Direct Economy Model updated for peer production: 

* Direct peer production of use value with no concern for
  monetization: the adventure economy of couchsurfing.com

* Direct peer production of use value with concern for equitable
  monetization: OS Alliance, ecopyleft, user ownership theory

* Direct production of use value by groups with commons-oriented
  business ecology

* Direct production of use value by individuals with monetization of
  attention through proprietary platforms

* Direct production of exchange value by groups: cooperative
  production

* Direct production of exchange value by individuals: minipreneurial
  ecology, social commerce, social retailing

Institutions vs. Communities
----------------------------

[see slide 29]

The politics of Web 2.0
-----------------------

* Web 2.0 and peer producers, the dolphin/shark dilemma:

  1) Who owns the platform (netarchical and vectoralist strategies)

  2) Is the infrastructure open/free

  3) Participatory design: is true sharing possible? 

  4) Who owns the content? (third enclosures) 

  5) Monetization strategies (revenue sharing)

What kind of 'intersubjectivity'?
---------------------------------

Alan Page Fiske's Relational Model 

* Reciprocity: The Gift Economy (tribalism) 

* Authority Ranking: The Tributary Economy (feudalism)

* Market Pricing: The Market Economy (capitalism)

* Communal Shareholding: The Sharing Economy (peer to peer)

Economic Evolution (projection)
-------------------------------

* The primary economy is based on reciprocity, which derives from
  common ancestry or lineage. It is based on families, clans, tribes
  and exchange mostly operates through gifts which create further
  obligation. Wants are defined by the comunity. Leadership is in the
  hands of the lineage leadership. Key issue: belonging.

* The secondary economy arises together with power monopolies which
  engender coercion as a means to force cooperation. We enter the
  domain of class societies, and production is organized by the elite
  in power, which holds together through the symbolic power which
  transforms power into allegiance. Respect for power, in the form of
  tribute, taxes, etc. is normative. The key question is: 'to deserve
  power or to deserve subjection'.

* The tertiary economy arises with the entrepreneur and capitalism. It
  is based on 'equivalent', i.e. 'fair' exchange, which is normative.
  Power arises from relative productivity, relative monopoly over a
  needed good, and from the wage relationship which creates
  dependence. Cooperation is no longer correlated to belonging.
  Relationships are impersonal.

* The quaternary economy, based on peer to peer proceses, is based on
  'ideological leaders' which can frame common goals and common
  belonging and is based on membership and contribution. Contributing
  to the best of one's ability to common goals is normative and the
  key question becomes: to follow an existing group or to create one's
  own, i.e. to convince or be convinced.

A peer-informed economy?
------------------------

* Today: treating scarce goods as if they were infinite; treating
  abundant goods as it there were scarce: the current economy is based
  on pseudoabundance and pseudo-scarcity

* Tomorrow: A steady-state economy coupled with growing immaterial
  assets and a well-being economy: the P2P political economy is based
  on real abundance and scarcity

* Today: the commodification of everything; cognitive and affective
  capitalism; the colonization of the life-world in the market state

* Tomorrow: a pluralist economy combining:

  * A core of non-reciprocal peer production

  * A reciprocity-based gift economy for services and traditional
    pre-capitalist economies (open money reform)

  * A vibrant market based on non-externalization, non-scarce monies
    and new corporate formats

  * Governance based on multi-stakeholdership

P2P Politics: Strategies
------------------------

* Three strategies: 

  * Transgressive = ignoring the old: Filesharing, Piratbyran

  * Alternative/Constructive = building the new: Creative Commons, GPL

  * Reformist = changing/adapting the old: legislative reforms (DAVDSI
    France)

P2P Politics: Goals
-------------------

* Recognition of true scarcities through true costing

  * Reforming the market: natural capitalism, living economies

* Impeding artificial scarcities

  * IP reform (against illicit monopoly rents from IP)

  * Monetary reform

* Promoting true abundance

  * Sustainability of peer production: p2p to market?

  * Universal basic income?

Democracy vs. Self-governance
-----------------------------

* One vote, binary decicions vs. Many differentiated decisions

* Discontinuous participation and batch processing Vs. Continuous,
  real-time bubbling up

* Polyphony, with prior perspective, arested products Vs. No prior
  code, permanent evaluation

* Autonomy is about direct expression without representation

* Politics is no longer about having/taking power, but about
  augmenting the potential for autonomy

P2P = a total social fact
-------------------------

[see slide 38]

THANK YOU
---------

Contact Information 

Wiki: www.p2pfoundation.net 

Blog: blog.p2pfoundation.com 

Email: michelsub2004 at gmail dot com


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