ParEcon, Anarchy and Politics
    by Brian Dominick
     
    ne of the most common questions posed by anarchists looking at the parecon 
    model concerns the existence, or nonexistence, of a state in a society with 
    a functioning participatory economy. What is the role, if any, of government 
    in the maintenance of a parecon system? Further, what role, if any, might a 
    state take in the establishment of a participatory economy? These are very 
    important questions, if only because as activists working for radical change 
    not only in the economic, but also the political sphere, we are concerned 
    with issues of strategy and consistency with our ideals. 
    The short answer is simple: No, there is nothing in the abstract theory, in 
    the existing literature on parecon, which necessarily calls for state 
    intervention in or control of economic activity.
    Of course, there is always a "but..." Satisfactory answers are rarely that 
    simple, and neither staunch anti-authoritarians nor those more willing to 
    accept various forms of government in a revolutionary society, are likely to 
    settle for such a basic explanation. In addressing anarchists on the 
    question of parecon and the state, it's important to note that advocates of 
    parecon are not necessarily in total agreement on these questions. We do 
    agree, though, that the state has no role to play in an economy to the 
    extent that economy has rendered political intervention unnecessary. However 
    obvious, that's the key point. If you understand the basic concepts of 
    participatory economics, it shouldn't be hard to see why a parecon could 
    function -- though perhaps not optimally -- in the absence of tinkering from 
    the political institutions. (These issues are handled briefly in John 
    Krumm's ParEcon FAQ.)
     
    The Government and Economic Functioning
    One mainstay of parecon is the relative separation of the political and 
    economic spheres. It's assumed that certain affairs will be handled by 
    political institutions, others by economic institutions. The latter are 
    tasked, in any society, with the maintenance of material relations: the 
    production, allocation and consumption of goods and services. Meanwhile, the 
    polity, whatever form it takes, handles the organization of a society's 
    moral function. Be it a strictly hierarchical and undemocratic state, or a 
    loose array of institutions intended to coordinate such activities as 
    dispute mediation (as in "the anarchist ideal"), or something in between, 
    the polity serves a function which can theoretically be almost wholly 
    removed from the economy.
    Most of what present day governments handle in so-called "mixed economies" 
    is the consumption, production and allocation of public goods and services. 
    But since these activities are central concerns of the parecon model, as 
    described in detail by Albert and Hahnel, the need for a polity to take on 
    such tasks becomes superfluous, assuming proper development and functioning 
    of the participatory economy. It is decidedly difficult for people living in 
    our present society, where capitalism cooperates and clashes with the state 
    in so many ways, to imagine a society where the economy is organized (a) 
    along principles of direct democracy, with controls to ensure the 
    participation and fulfillment of all economic actors on an equitable basis, 
    while remaining (b) outside the control of political institutions.
    Somewhat ironically, when many anarchists inquire about the necessity of 
    state involvement in a parecon, they have actually assumed that political 
    institutions will need to be involved in the "governing" of economic 
    affairs, in order to maintain a balance between the people (or the 
    "community") on one hand, and economic institutions on the other hand. But 
    just as the polity in an anarchistic society can be established such that 
    the people are the polity, so too does parecon ensure that the people are 
    the economy. 
    In fact, while the processes for democratic politics are in many ways 
    different from democratic economic activity, the guiding principles are the 
    same: decision-making input in accordance with the amount one is in turn 
    affected by the outcome of a given decision. Of course, both economic and 
    political democracy also require transparency of decision-making processes, 
    in addition to full availability of information relevant to decisions. In 
    truth, because economics is a more tangible "science" than politics, it is 
    actually easier to determine fairness of input and outcome (both 
    quantitatively and qualitatively) in an economy than in a polity.
    Some questions arise at this point. One regards the relationship between 
    morality and the decisions made in a participatory economy. Parecon is by no 
    means "amoral" -- many of the concerns addressed by parecon are particularly 
    ethical ones, especially in parecon's promotion of equitable circumstances 
    and rewards for economic actors. Exploitation of labor, as well as 
    resources, are thoroughly dealt with as both implicit and explicit issues. 
    But the present theories are limited. 
    For instance, there are many people who believe there is inherent value in 
    "nature," from trees to animals to soil. They argue that nature has a value 
    not to be determined merely in accordance with ecology's effects on or 
    usefulness to human society. To such people, human interaction with the 
    natural environment, whether it's called economics or something else, is a 
    vital concern. Even if this seems a bit extreme, it should be generally 
    agreeable that all our social activity should take into account its effects 
    on the world around us. While some "humanists" may argue that questions of 
    environmental impact shouldn't extend beyond their discernible effects on 
    human society and social well-being, many people (perhaps most) reject this 
    outright. That is, even if it could be proven that the extinction of a 
    certain species by humans would have no effect on humans or society 
    whatsoever, few would be willing to accept the extinction of that species, 
    at least without such extinction leading to some substantial human gain, or 
    there being a definite lack of reasonable alternatives. Even then, many 
    would have ethical concerns with human-induced extinction, or even 
    exploitation, of other species.
    Obviously, there either needs to be further development of parecon theory to 
    incorporate mechanisms for introducing solely "ethical" or "moral" 
    ecological factors into a desired economy, or we must assume that some 
    political intervention is necessary. A purely "humanist" economy is unlikely 
    to satisfy many people, since it is inherently incapable of protecting the 
    "nonhuman" environment except as the latter pertains to human needs. 
    So what are the options? One is to include qualitative valuations of 
    environmental effects into parecon. To the extent the environmental impact 
    of economic activity in turn effects humanity, the "pricing" mechanism of 
    parecon incorporates the need to discourage such activities with high social 
    costs and encourage those yielding social benefits. But the key word here is 
    obviously "social." If it is deemed socially beneficial (by a standard, 
    humanist definition of "social") to exploit animals, for example, a parecon 
    will make exploitation possible. 
    Adding further mechanisms for qualitative valuation of parecon activity is 
    certainly possible, but of course it would be humans who ultimately make the 
    qualitative judgements, based on evaluations and decisions more political 
    than economic, if we can truly separate both concepts. Alternatively, a 
    polity could impose regulations on economic activity as a result of 
    deliberation and democratic decision-making with regard to moral concerns. 
    In a society with the ability to legislate, laws could be established 
    through political means which would effectively place bounds on economic 
    activity.
    This debate about moral authority and economic activity in a parecon society 
    is likely to be alive well after a participatory economy has been 
    established through popular revolution. It probably behooves us greatly to 
    leave these questions wide open for now. Indeed, so often we see only two 
    options (recall market capitalism vs. central planning...) -- perhaps there 
    is a "third way" here, too. I have discussed these issues here only to 
    highlight the fact that there may very well be a need for political 
    intervention in a parecon, in the relatively few areas where the economy 
    itself has not been structured suitably to handle certain concerns. To its 
    credit, participatory economic vision has left remarkably little outside the 
    capable domain of the economic institutions it envisions -- before we get 
    too troubled by questions like those raised above, we should take note that 
    few such questions even exist.
     
    Government and Establishing ParEcon
    Since I am elsewhere writing more extensively on strategy for bringing about 
    a participatory economy, I will only briefly comment on the role the state 
    should or should not play in economic transformation. Obviously, if we look 
    at the process of changing over to parecon as starting now, the state 
    presently in power plays a role whether we like it or not. There are clear 
    legal prohibitions on the development of parecon, and the current government 
    is certainly on the side of pareconers' capitalist adversaries. 
    This doesn't, however, exclude political activity from our tactical toolbox. 
    If the development of stronger, more democratic unions is a component of 
    economic revolution, it makes sense to strengthen laws which protect labor 
    organizing. If increased consumer awareness now is recognized as lending to 
    the creation of consumer control in a transformative, participatory economy, 
    it's reasonable to pressure the state to regulate capitalists' packaging and 
    promotion of their products. Also, the imperative of consumer control, in 
    present political terms taking the form of government bodies which restrict 
    the powers and "freedoms" of producers to exploit or "cut corners," leads us 
    to advocate an increase in government authority where the oversight and 
    limitation of corporate activity is concerned. If resisting neoliberalism 
    will strengthen domestic labor forces worldwide, we should fight "free 
    trade" agreements and support legal restrictions on multinational capital.
    Many whom we might call "anarcho-purists" insist that any advocacy of 
    government intervention (or existence) strengthens the present state and is 
    thus anathema to our aims. To a large extent, this rings true in reality. 
    Looking to the government to resolve our problems certainly distracts us 
    from our own, popular power. Still, we should be willing to admit that in 
    the here and now, certain exploitations of workers, consumers and the 
    environment cannot be resisted directly by existing social movements. While 
    every activist has priorities, and radicals tend to place theirs on popular 
    (not electoral or legislative) organizing, this doesn't mean anyone should 
    be unable to recognize small victories such as the restriction of corporate 
    power to assault people and the environment. There is a noteworthy 
    difference between using reforms as tactical components of a revolutionary 
    strategy, and focusing on reforming society as the strategy. 
    In the end, we can all agree that organizing which turns its back on (or 
    directly confronts) the state in favor of direct democracy and participatory 
    development of economic alternatives is absolutely necessary if we truly 
    wish to revolutionize society. Since we live in a society with a very strong 
    government, we cannot deny that it will play some role in economic change -- 
    mostly resisting (at least for now), but perhaps also abetting.
    That said, we should all be fully aware that if the revolutionary economy we 
    seek is to be truly democratic and participatory, it cannot be legislated 
    into existence from the top down. It will never make sense to lobby for the 
    implementation of a parecon system, not least because it's ridiculous to 
    assume any government would support an economy which largely (if not 
    totally) excludes government involvement and functions generally independent 
    of political intervention. Additionally, the decentralized nature of parecon 
    demands its development at and emergence from the grassroots.
    To the extent parecon is agreeable to anarchistic aims, because of its 
    directly democratic, participatory structures and processes, it will have to 
    be brought about by means precisely consistent with such ends. Perhaps 
    benefiting along the way from gains achieved through political agitation, 
    only through hard work at the grassroots level will we be able to create the 
    foundation for an economic system we can truly be happy with.
    In dealing with a different kind of polity -- a revolutionary polity managed 
    by a directly democratic, participatory government -- the question of 
    government's role in establishing a parecon changes quite dramatically. At 
    some point, rules, policies and structures for the new economy will have to 
    be established. As the authors of existing material on parecon theory would 
    be the first to explain, it wouldn't be desirable for those creating a new 
    society to one day sit down and start directly implementing parecon theory 
    as now written. Some rather thorough decision-making process, based on 
    theory and experience, has to take place in formalizing and setting up a 
    participatory economy.
    Even in a society populated by a foundation of participatory cooperative 
    workplaces and the like, transformations will be necessary. Indeed, these 
    decision making and transitional processes will need to take place over and 
    over again in different societies and communities, with varying results. In 
    cases where democratic polities have been established, it might make sense 
    for them to take on the organization of a participatory economy by 
    coordinating and implementing the mandates of populations.
    Most likely, directly accountable councils or committees would be 
    established at numerous levels, perhaps in cases independent of one another, 
    to write public proposals for parecon bylaws, policies and so forth. This 
    would ideally occur during a period when the general public is becoming more 
    educated about economic theory and vision. That is to say, during a 
    revolutionary period.

    

    Brian Dominick is a community organizer and developer of the ParEcon Project 
    website. 

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