Alternative Institutions

July 29, 2013

If we were interested in realizing the broad political ideals I wrote about in my post on social democracy, what alternative economic institutions would be required? Here’s a first pass at answering that question[a][b].

1) Guaranteed minimum income of some kind, for everyone, globally. This would go a long way towards providing a baseline standard of living for most everyone. It would also remove one of the major levers of economic exploitation (that is, the fear of poverty).

2) Free movement of people, globally. One could imagine a scenario in which our broad political goals are achievable without this; but free movement of individuals would be a valuable step in the direction of a more liberated global society. This would greatly reduce one major mechanism of global economic exploitation – the enforced international segmentation of the labour market by national class boundaries – and would provide a powerful weight against political oppression at the national (or equivalent) level.

3) Considerable democratic regulation/direction of production. A more ‘socially rational’ direction of productive resources would tend to follow from a more equitable distribution of global wealth; but one would also need heavy regulation/direction to address externalities (such as, for example, carbon emissions), and one would presumably also want a degree of collective decision-making around preferred use of collective resources. These forms of regulation/direction would have to be implemented at least in part through global institutions.

4) Considerable reduction in a typical individual’s lifetime labour, and corresponding increase in leisure/volunteer activities. This would probably follow naturally from a guaranteed minimum income – the institution-building challenge would very likely be the incentivisation of socially useful labour, rather than the reduction of labour hours – but it would be an important goal of our institution-building.

These items constitute a ‘market socialism’. More radical overhauls of global economic institutions would of course be possible – though the institutional changes above are obviously already very substantial. I’d like spend more time thinking and reading about these and other alternative institutions.

[a] This post incorporates content from offline conversations.
[b] I obviously make no claims to originality here, nor do I know the relevant literature.


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