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Chasing Utopia | Jacobin

ChasingUtopia
Worker ownership and cooperatives will not
succeed by competing on capitalisms terms.

by Sam Gindin

A workerowned factory in Argentina. The Working World / Flickr

Tocelebratethereleaseofournewissue,UpFrom
Liberalism,subscriptionstoJacobinstartatjust$14.95.

Thisyearmarksthe ve-hundredthanniversaryofThomasMores

Utopiathebookthatintroducedthetermutopiaintoradical
thoughtduringtheearlydaysofcapitalism.InMoresstory,a
ctionalcharactermatter-of-factlydeclares,whereveryouhave
privatepropertyandmoneyisthemeasureofallthings,itishardly
everpossibleforacommonwealthtobegovernedjustlyorhappily.
Halfamillenniumlater,thisideathatprivateownershipofthe
meansofproductionisthecentralbarriertoabetterworldhas
muchpurchaseontheLeft,withmanycallingforaneconomybased
ondirectworkerandcommunitycontrol.

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MichaelAlbertandRobinHahnelwereattheforefrontofsuch
demands,attemptingtoestablishthepracticalfeasibilityofa
participatoryeconomybeginningintheearly1990s.Writing
afterthe2008 nancialcrisis,Hahnelre-emphasizedthe
importanceofbelievinginaplausiblealternative:withoutit,hesaid,
wecannotexpectpeopletotaketherisksnecessarytochange
thingsnorforgeastrategyofhowtogetfromheretothere.
Morerecentadvocateshavemovedonfromtheproblemof
con dencetotheproblemofstrategy.Threeprominentleft
intellectualsareatthecenterofsucheorts:RichardWol,Gar
Alperovitz,andErikOlinWright.
Workingmoreorlessindependently,theirargumentsnevertheless
coincideandhavefoundareadyaudienceamongactivists
disillusionedwithunions,electoralpolitics,andtheirown
experienceinsocialmovements,butinspiredbyexperimentsin
popularcontrolinLatinAmerica.Withinterestgrowing,the
participatoryeconomyhasbeendubbedthenextbigideaonthe
Left.
Partisansofpopularcontroladvocatethegradual,directtakeoverof
workplacesbygroupsofworkers,withincapitalism,alongsidea
similarlyimmediateexpansionofcooperatives(co-ops)and
spreadingofdecentralizedparticipationintoeveryaspectofsocial
life.Overtime,thesequantitativechangeswilleectaqualitative
change,withcapitalismgivingwaytoasocietybasedonsubstantive
economicandsocialdemocracy.
ForRichardWol,apoliticaleconomist,capitalismsde ning
problemisexploitation.Capitalistsbyvirtueoftheircontrol
overthemeansofproductionbuylaborpower,organizeit,and
controlthesurplusthatworkerscreateforboththeirown
consumptionand,aboveall,fortheproductivereinvestmentthat
keepsthiscyclegoing.
ButWoldoesntthinkwellendexploitationbytryingtoregulate
marketsorturningtostatistalternatives,whethersocialdemocratic
orcommunist.Giventhepowerrelationshipsembeddedin
capitalism,hethinksindustriesinevitablycaptureregulatorsand
scalexpansiongrowsthesysteminsteadofalteringit.Andcentral
planningmerelysupplantscapitalistswithstatebureaucrats.

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LikemuchoftheAmericanleft,Wolissympathetictounions.But
heseesthemasnolongercapableofleadingsocialchange.Instead,
hepresentsasyndicalist-leaningalternativebasedonthecreationof
WorkerSelf-DirectedEnterprises(WSDEs)thatarefocusedonthe
internalorganizationofproductiveenterprisesandpositioning
workerswithineachproductiveenterpriseasthemselvesthe
appropriatorsofthatenterprisessurpluses.
HistorianGarAlperovitz,equallyoptimistic,arguesthatworkers
alreadyhaveamaterialfoundationforjoiningthisrevolutionin
propertyrelations.Distancinghimselffromthewidespreadviewof
thepastthreedecadesasaperiodofperpetuallylowered
expectations,AlperovitzpredictsinWhatThenMustWeDo?that
moreandmorepeoplewillembraceaturnagainstcapitalistsocial
relationsastheeconomycontinuestodeteriorate,oeringfew
alternativesotherthaninnovatingandtakingthingsintoonesown
hands.
Hetakesitastepfurther,assertingthatthenextAmerican
revolutionisalreadyunderway.Socialism,Alperovitztellsus,is
ascommonasgrassintheUS(addingparentheticallywell,maybe
notthatcommon...butstillverycommonindeed).
InachapterentitledEverydaySocialism,AlltheTime,American
Style,Alperovitznotesthatthequietdemocratizationofthe
Americaneconomyhasledmorethan40percentofthe
populationtojoinco-opsandovertenmilliontobecomemembers
ofemployeestock-ownershipplans(ESOPs).ESOPs,headdsfor
emphasis,includethreemillionmore[members]thanaremembers
ofunionsintheprivatesector.
ErikOlinWright,aMarxistsociologist,ismoretheoretically
ambitiousandnuancedinhisdiscussionthanAlperovitz.Herightly
rejectsthedeterministstraininvulgarMarxism,andthoughhe
expectsthatthestruggletoreplacecapitalismwillincludeserious
con ictsandlocalizedruptures,hesensiblyviewsan
insurrectionarysolutionasoutmodedinanerawhencapitalismis
primarilycoupledwithliberaldemocracy.

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Moreover,Wrightfearsthatthecorollaryofarupturethe
dictatorshipoftheproletariatrisksamoresevere
authoritarianism.Thisdoesntmeanhealignshimselfwith
anarchist-tingedsocialmovementsimplacablyhostiletothestate;
heseesthestateasanimportantsiteofstruggle.
ButlikeWolandAlperovitz,headoptsagradualist
metamorphosisframeworkandplacesconsiderableweightonthe
eclecticdevelopmentofinterstitialalternativesthatgrowinthe
cracksofcapitalismrealutopiasthatcaneventuallyspreadto
capitalismscore.
Theappealofmicrocosmsofafutureworld,suchasco-opsand
WSDEs,speakstoacommondesireforsubstantivecontroloverour
dailylives,aswellasahopethatsuchinstitutionsmightactas
strategicbatteringramsforreachingsocialism.
Moreover,theMarxist-in ectedpopulismofthisapproachseemsto
oeranescapefromeitherworkingwithinthesystemandgetting
co-opted,orwaitingforarevolutionthatnevercomes.
Formanyactivistsitalsoseemstocontaintheaddedbonusof
sidesteppingthemessycomplexitiesinvolvedwithconfrontingthe
stateeventhoughthestatestandsatthecenterofproperty
relationsandcapitalistpower.
Intheend,however,thisstrategicorientationdoesntcutit.

EndsandMeans
Di

cultiesquicklyemergeinproposalstointroduceworkerself-

managementwithincapitalism,particularlywhenitcomesto
ownership.AlbertandHahnelwerealwayscarefultoinsistworkers
didnotowntheirparticularworkplace,eveniftheycontrolledit
theworkplacebelongedtosocietyasawhole.
Theyarguedthatworkersshoulddirecttheirworkplacesbecause
theyaretheonesmostaectedbywhathappensthere,butin
orderforsocialistdemocracytowork,everyoneaectedby
workplacedecisionsotherworkersaswellasconsumersandthe
communitymusthaveasayinhowtospendthesurpluses
generatedbyproduction.

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However,thornyquestionsaboutownershipandthemediation
betweenmeansandendsmorebroadlyarisewhenworker
controlisimplementedwithincapitalism,asysteminwhichthe
institutionalizationofpropertyrequiresthatownershiplegallyand
substantivelyresidesomewhere.
Ifstateownershipisrejectedasaproxyforthecommonsandif
ownershipinworker-controlledenterprisesisinthehandsofthe
workers,thenthesegroupsofworkersessentiallybecometheirown
capitalists.Theyhaveownershiprights,mobilizetheirown
nances,andcontrolandreinvesttheirsurplusfortheirown
advantage.
Thesigni canceofhavinglegallyauthorizedpropertyrightswas
drivenhomeintheaftermathofArgentinas2001economiccrisis.
Whileworkerstookovershutteredfactories,theyneededtheclear
collateralofpropertyrightstoavoidbeingdenied nancingand
credittopurchasecomponentsandsuppliesinadvanceofsales.
Thestategaveintothisdemand,butonlyontheconditionthatthe
workplacesbecomeco-ops,meaningworkersinheritedthedebtsof
therecuperatedfactoriesandwerealsoresponsiblefortheir
losses.
Themostmilitantworkersbalkedatsuchanarrangement.They
wantedaroleinmanagingtheworkplaces,butarguedthestate
shouldlegallytakethemover, nancetheirrenewal,andlinkthem
togetherinaplanacrossworkplaces.Thosedemandsweregenerally
defeated.
Soworkersendedupwithco-opsandweretriplyunderminedas
competitorswithincapitalism:theystartedwithfacilitiescapitalists
hadleftundercapitalizedanduncompetitive;theyweresaddled
withdebt;andtheyhadtoputtheirownsavingsintothefacilitiesor
acceptlowerwagestoaddresstheissuesofdebtandnew
investment.
ThecaseofArgentinacastsdoubtonthenotionthathavingmore
worker-controlledworkplacesorco-opsreadilytranslatesintoan
increasinglyegalitariansocialorder.

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Withoutanalternativeinstitutionalmechanismforcoordinating
productiveactivities,competitivemarketswhichHahnel
describedasthecancerofsocialismtransformdierencesin
assets,skills,locationaladvantages,andproductvaluationintostark
inequalitiesbetweenworkersandcommunities.
Thenegativeimpactofsuchinequalitiesonsocialsolidaritywas
madepainfullyevidentintheformerYugoslavia,whichhad
implementedfullmarketsocialism.Theunevendistributionof
historicandgeographicadvantagesmeantthatinequalitiesacross
rmswerealsoexpressedregionally.
Wherethisoverlappedwithethnicandclientelistpolitical
structures,itdangerouslyaggravatedethnictensions.Andas
northernYugoslaviadevelopedclosereconomictieswithEurope,
theseinequalitieswereampli ed.
Oneofthemostimportantoftheinequalitiesgeneratedby
competitionaninescapablepartofcapitalismis
unemployment.Ifsuccessfulenterprisesdriveunsuccessfulones
outofbusinessandifworkercollectivesprefernottohireandshare
pro tswithworkersjustenteringtheworkforce,whathappensto
workersleftwithoutajob?
Wolhasponderedthisquestion,andacknowledgesthatan
economypopulatedbyWSDEswouldrequirestateinterventionto
ghtunemployment.Buthisantipathytowardthestateleaveshim
withasurprisinglynaveanswer:Insteadofaperiodofreceiving
regularunemploymentpayments,[workers]couldchoosetogetthe
totalpaymentsinadvanceasinitialcapitalforaWSDE.
Sendingworkerswhohavefailedto ndjobsbackintothe
competitivejungle,oroeringworkersjustenteringtheworkforce
achancetocompetewiththosealreadyestablished,soundsalotlike
solutionsoeredbythelibertarianright.Anditignoresthefactthat
theoneplacewithsuchaprogramItalyhasunemployment
ratesdoublethoseoftheUS.
Onemodelthatappears,onthesurface,tobetteraddressthe
problemoffragmentedworking-classownershipistheQuebec
SolidarityFund(QSF)oneoftheexamplesofrealutopiasthat
Wrightpraises.

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TheQSFisdistinctinthatthestatesubsidizesworkerstoinvestina
solidarityfundandplacesownershipandinvestmentdecisions
notinthehandsofdispersedworkersorsub-groupsofworkersbut
inalargercollectivityinthiscase,acentralunionbody.
WhileWrightacknowledgesthattheQSFdoesntchallenge
capitalism,hestillseemstobelieveitcancontributetothelarger
projectofdoingso.Thisismistaken.Puttinglaborleadersincharge
doesnotinitselfguaranteeabetterpolitics.Indeed,theQSFwas
originallydesignedtodivertpopulistattentionfromradical
demandslikecontrolofprivate nancialinstitutionsnotto
democratizetheeconomy.
Inreality,workerparticipationintheQSFconsistsmostlyof
sharingintheuniquelyhightaxbreaksgrantedtothosewho
contributetothefund(abene tthathashelpedmutecriticismof
corporatetaxbreaks).TheQSFalsoprovidestheQuebec
FederationofLabourwithclientelistopportunitiessuchashighpayingjobsatthetopandremunerationforactivistswhosellthe
programinworkplaces.
Aboveall,thefundsconcernforhighreturnsandlegitimacyin
investmentcircleshaspreventeditfromusingitsfundstofavor
unionized rms,refrainingfrominvestmentsinanti-union rms,
consideringcreativeconversions,orshowinganysigni canta nity
forsocialinvestments.
Inthisregard,Wrightsmisleadingidenti cationofQuebecasa
socialeconomyseemstore ectatacticaldeterminationonthe
Leftto ndpositiveexamplesthatspuroptimism.Toitscredit,
Quebechasintroducedprogressiveprogramslikechildcare.
Buttheoverallstoryisnotallthatdierentfromotherjurisdictions.
Studentsandunionshavebeenmarchinginthestreetsagainst
tuitionincreases,public-sectorcutbacks,wagefreezes,and
environmentaldegradation.YetinQuebec,aselsewhere,nosocial
economyhasreplacedthesetofpoliciesweidentifyas
neoliberalism.
Moreambitiousproposalsthatslowlycollectivizepropertywithout
directlylimitingcapitalspowerareevenmorelikelytocomeup
againstseriousbarriers.TheMeidnerPlaninSwedenisauseful
illustration.

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TheMeidnerPlan,designedbytheLO(Swedenslaborcentral)in
the1970s,proposedanannuallevyonpro tsthatwouldthenbe
convertedintosharesandplacedinacentralfundcontrolledby
unions(whichatthetimerepresentedover80percentofworkers).
Thefundscouldbedemocraticallyallocatedtoregionalandsectoral
developmentand,overtime,majorityownershipofthenations
productiveassetswouldshiftfromprivateownerstotheSwedish
workingclass.
Buttheissueoftimeturnedouttobeamajorproblem:throughout
thetransition,theSwedisheconomywouldremaindependenton
thesameprivatecorporationstheplansoughttoexpropriate.
Warningthattheywouldinstinctivelyholdbacklong-term
investmentiftheirpropertyrightswerethreatened,andarguing
thate ciency,stability,andevenlivingstandardswouldsuer
irreparabledamageifthetransferofownershiptookplace,
corporationsmobilizedaggressivelyagainsttheMeidnerPlan.
Counteringbusinesssthreatdemandedabroad,aggressive
response,includingblockingcorporationsfromrunningdowntheir
assetsorleavingthecountry.Butsuchadramaticrupturewith
capitalismwasnotontheagenda,andtheLOsproposalelegant
intheorybutcontradictoryeconomicallyandpoliticallywent
downindefeatandwasneverrevived.

Cheerleading
Asoberassessmentofthesuccessesandfailuresofexperimentsin

workerownershipisessential.Unfortunately,theweaknessofthe
Lefthasreinforcedatendencytoexaggeratethesigni canceof
promisingstruggles.
Desperateforgoodnews,activistswildlyapplaudeachworker
takeoverorbreakthrough.Butasthenoveltyfades,whatwegetis
nothardheadedanalysisbutashiftinattentiontothenextinspiring
actionandthenthenext.

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AcaseinpointisRepublicWindowsinChicago.Afteran
announcedclosure,asit-down,achangeinownership,andanother
announcedclosure,workerswithnohopeof ndinganother
ownercourageouslytookthestepofestablishingaworkerscoop.A urryofenthusiasticarticlesfollowed,withthehopethatit
mightspuralong-awaitedresurgenceofthelabormovement.
Butwhenthatdidntquicklycometopass,Republicdroppedothe
Leftsradar.Therewasalmostnodiscussionaboutthedistressing
eventualoutcome:oftheoriginal240workerswhofacedthe rst
closureannouncementin2008,only17remain,anddueto
competitivepressures,theypaythemselvesnearorbelowthe
minimumwage(asco-owners,theyrenotcoveredbyminimumwagelaws).
ThetragedyofRepublicWindowshighlightsthelimitsofsporadic,
moreorlessarbitrarytakeovers,especiallywhenasisthenorm
thefactoryinquestionhasbeenspurnedbycapitalbutremains
subjecttothesamecompetitiverelationsbetweenenterprises.
Thoughadmirableasdefensivemeasures,factorytakeoversarenot
inherentlythreateningtothestatusquo,nordotheynecessarily
leadtothedeeperunderstandings,commitments,andstrategic
capacitiesthatcouldprovidethebasisforafuturechallengeto
capitalism.
AmoredramaticillustrationisthewaveoftakeoversinArgentina,
whichsparkedespeciallyintenseexcitementontheinternational
left.
Buoyedbythesupportofsurroundingcommunities;thesolidarity
ofworkersfromothertakenplants;andthepiquateros(mobilized
groupsofunemployedworkers),workerssuccessfullyblockedstate
attemptstoevictthemfromtheirrecuperatedfactories.
Moreover,intheprocessofoperatingtheseworkplaces,workers
learnednewskills,ahigherprioritywasplacedonhealthandsafety,
workerstendedtobemore exibleinsharingworkloads,and
hierarchieswithintheworkplaceandincomestrati cationwere
substantially attened(particularlywherestrugglestokeep
workplacesopenweremostacute).

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Asinpastmomentsofprofoundpoliticalturmoil,theactionsof
workerscon rmedtheradicalpotentialandcentralityofthe
workingclass.MarinaKabat,acloseobserverofthese
developments,rightlycharacterizedtheArgentinianeventsasone
ofthegreatestachievementsoftheworkersmovement.ButKabat
alsocounseledcaution:Tooverlooktheirlimitsandcontradictions
willnothelptopreservethem[nor]developtheircomplete
potentialforthefuture.
Thoughtheseactionsrepresentedconcretealternativesfor
particulargroupsofworkersandtheircommunitiesandleft
importantlegaciestheydidnotdevelopintoanalternative
modelforsocietyasawhole.Plantsweretakenoveroutof
desperation,notstrategicpreference.
Withoutaconsciousstrategyforoverallsocialtransformation,
especiallytheneedtogofurtherandwinstatepowerinorderto
support,expand,andcoordinatethetakeoversandeliminate
competitionasadrivingforce,abreakwithcapitalismwasnevera
genuinepossibility.
TakeoversremainontheagendainArgentinatoday,buttheir
growthhasslowedamidafallinclosures.Asof2014,therewere
somethreehundredworker-ownedoperationscoveringnearly
fourteenthousandworkersafractionofArgentinastwo
hundredthousandregisteredbusinessesandlessthanone-tenthof
thecountrysworkforce.Workertakeovershaventtouched
prosperousworkplacesorthecommandingheightsofthe
economy.
Anotherpopularmicro-alternativeistheco-op,aformofbusiness
basedontheegalitarianprincipleofonemember,onevote.Theres
nodisputingtheachievementsofco-ops,butitsimportantnotto
exaggeratetheirsigni cance.
WhileMarxfamouslypraisedworkercooperativesas
represent[ing]withintheoldformthe rstsproutsofthenew,he
alsoinsistedthattheynaturallyreproduce,andmustreproduce,
everywhereintheiractualorganizationalltheshortcomingsofthe
prevailingsystem.

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Formalequalityinco-opsdoesntnecessarilymeanthateveryone
participatesequally;asinelectoraldemocracy,bureaucraciesand
elites(andindierence)readilythwartthepromiseofequalvoting
rights.Additionally,over90percentofco-opsareconsumerco-ops,
meaningthemainownersarentthepeoplewhoworkthere.
Eveninworkerownedcooperatives,membershipandemployment
dontalwayscoincide:atCooperativeHomeCareAssociates,
Americaslargestworker-ownedcooperative,onlyhalftheworkers
areco-opmembers.Thisisntunusual:manyco-opsareco-opsin
nameonly,andsomelargeonesevenopenlyencouragespecialstock
ownershipthatweakensmembershipcontrol.
Co-opsarealsonotnearlyasautonomousfromcapitalismsdictates
asadvocatesimply.Creditunionsthemostprevalentkindofcoophavehadtoenter nancialmarketstoraisethefundsto
servicetheirbase,andarethereforeeectivelyintegratedwithWall
Street.Somewereevenimplicatedinthe2008 nancialcrisis.
AlookatMondragon,theiconic,six-decade-oldco-opintheBasque
Country,revealsthelimitationsofco-ops.Boastingaworkforceof
80,000,andoperatingonaglobalscalethrough150,000companies
withannualsalesof$16billion,Mondragonisaliving
demonstrationthatitispossibletorunabusinessthathasaformally
democraticstructure,asigni cantly attenedincomeandpower
structure,andahumane,plannedlayomodel.
StillMondragonfallsfarshortofAlbertandHahnelsideal.While
theexecutive-to-workerincomeratiois6.5:1afractionofthe
350:1intheUSitstillleavestopmanagersinhabitingadierent
worldthanworkers.And,asSharrynKasmirhasshowninher
research,participationindecisionmakinghasprimarilybeenof
interesttolower-levelmanagementnotworkers.
Recentdevelopmentshavebroughtadditionaltroubles.
CompetitivepressuredrovetheclosingofoneofMondragons
largestoperations(Fagor,anappliancemanufacturerwith3,400
workers),andtheco-op ndsitselfincreasinglyrelianton
temporaryworkersathomeaswellasgrowingproductionabroad
thatusesworkerswhoarehiredlabor,notco-opmembers.

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Inshort,co-ops,onceanintegralpartofradicalpolitical
movements,arenowlargelyintegratedintothecapitalistorder.
Theymaylobbyforparticularchanges,buttheynolongermobilize
alongsidethose ghtingcapitalism.
Instead,themaininterestofco-opmembersisgenerallynomore
radicalthangettingahighersellingpriceorlowerbuyingpricein
themarketnothingtoscoat,butalsonothingtomake
capitalistssweat.
Evenwiththeseshortcomings,takeoversandco-opsdohavesome
positivestrategicattributes.Theenthusiasmforemployeestockownershipplans,incontrast,isdownrightpuzzling.UnderESOPs,
workersarepartiallycompensatedthroughcompanysharesthatare
heldintrustuntiltheyretireorleave.Anotableproponent,
AlperovitzconcedesthatESOPsarefarfromperfectbutstillcites
themasevidenceofevolutionaryreconstructionintheadvanceof
democracy.
YetESOPswereintroducedtoundermineworkplacedemocracyand
workerpower,notenhanceit.CorporationslikeProctorand
Gamble,IBM,Coca-Cola,andUPSchoseemployeestockownershipplansforthetaxbreaksandtohelpkeepunionsout(orat
leastlimittheirmobilizationagainstwageorbene tconcessionsby
oeringapartialoset).
AsaFederalReservepaperexaminingtherelationshipbetween
unionbargainingandESOPsconcluded,ESOPscreateincentives
forunionstobecomeweakerbargainers.Fromtheperspectiveof
challengingcapitalism,ESOPsarentpre gurative,butintegrative.
Thestockholdingsoeredtoworkersinvolvenoredistributionof
power,andwhatworkersgenerallyshareintermsofcorporate
revenueismerelyasliceofwhattheyrecentlygaveup.
InattemptingtoestablishthehegemonyoftheideaofESOPs,
AlperovitzcoylyquotesnoneotherthanformerpresidentRonald
Reagan:Icanthelpbutbelieve,Reagansaidinaspeechin1987,
thatinthefuturewewillseeintheUnitedStatesandthroughout
thewesternworldanincreasingtrendtowardsthenextlogicalstep,
employeeownership.

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Butfarfromsuggestingthepowerofanideawhosetimehadcome,
Reagansendorsement(asthefullspeechmakesclear)signaledhis
comfortwithamodeoforganizationthatnolongerthreatenedthe
establishment.
Mypointisnottodismisstheimportanceofstrategiesdesignedto
increaseworkercontrolandownership.Ingeneral,factory
takeoversandco-opsshouldbeenthusiasticallysupported.
Butwhatsmissinginsomuchrecentanalysisisasober,comradely
investigationoftheirstrengthsandweaknessessothat,overand
abovesolidarity,wecanlearnfromthemratherthanaddtoexisting
illusionstherebygainingabetterappreciationofwhat
transformingsocietywouldreallyrequire.

TheStateandWorking-Class
Agency
Forallitspurportedlyradicalgoals,themovementforworker

controlwithincapitalismoersupcuriouslyapoliticalstrategiesto
getthere.Theyprioritizechallengingpropertyrelations,butpay
scantattentiontotheneedtoenterandtransformthestate,and
seemtohavelittleappreciationforhowinter- rmcompetition
helpsreproducecapitalismssocialrelationsandpriorities.
Linkedtotheseshortcomingsistheshortshriftgiventopolitical
agencyandthekindsofclasspoliticalcapacitiesasopposedto
economiccapacitiesthatgettingtheredemands.Thisrelative
disinterestinpowerandagencyisthemovementsmost
fundamentalweakness.
Howwouldworkersactuallytakeoverworkplacesnotabandoned
bycapital?Isitrighttoexpectworkerstoevenwanttodosogiven
theuncertaintiesandlackofinstitutionalsupport?What
preparationsarebeingmadefortheinevitablecounter-attackfrom
thestateifthismovementactuallybeginstothreatentheeconomys
dominantcorporationsandlimitprivatecapitalaccumulation?And
beyondanythreatsfromthestate,howwillthesefragmentsofanew
socialorderbecoordinatedandshelteredfromthedestructive
pressuresofdomesticandinternationalcompetition?

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Organizingoutsidethestateisundoubtedlyimportant.Yetatsome
point,anticapitalistmovementscantavoidtakingthestruggleinto
thestate.Historically,whenworkershavegonetothebrinkinterms
ofmilitancybutrefusedorlackedthestrengthtoengagewiththe
state,theirrebellionsfadedorwerebrutallycrushed.Toignoreor
downplaytheneedtobuildamovementthatcantakeonstatepower
istolosebydefault.
Asystematicconsiderationofthestateisntjustanissueforlater,
afterthemovementhasbecomeanactualthreat.Rather,itisan
immediatechallengeevenwhenviewedinstrictlyeconomic
terms.
Thoughworker-ownedenterprisesandco-opshaveproventheycan
surviveinparticularnichesorineconomicspaceslargelyabandoned
bycorporations,confrontingcapitalismsmajorbanksand
corporationsisacompletelydierentmatter.
Itstrainscredulitytoexpectworker-ledenterprisestomarchoutof
capitalismsshadowsandreplacecorporatecapitalwithoutthekind
ofsupportthatcanonlycomefromstates.Theproblemisnotonly
thatWSDEsandco-opsaredisadvantagedfromthebeginningin
termsoftheworkplacesandsub-sectorstheyhaveinherited,nor
thattheyconfrontsuchamassivegapin nancial,managerial,and
technicalresourcesaswellasestablishedconnectionstoinputsand
markets.
Aboveall,itisthatcompetitiontrumpseverything.Despiteisolated
exceptions,competingoncapitalstermswhiletryingtohangonto
valuesthatdontenhancecompetitivenessmeansrepeatedlyfacing
achoicebetweenjettisoningthosevaluesandacceptingdefeatin
competitiveterms.
Onecommonresponsetothisdilemmaislobbyingforspecial
provisionsforWSDEsandco-opstopartiallycorrectthe
competitivedisadvantage.Theserangefromtheeasilyagreed-upon
policyofmoretraining,tofavorablestart-upand nancial
subsidiesandsubstantivetechnicalandresearchsupport.Yetwhile
survivalmaymakesuchresponsesnecessary,theyalsofurther
legitimatethedestructiveimpactofthecompetitivegame.

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Theday-to-dayrealitiesofcompetitiontendtofragment
solidarities,pushingworkercollectivestolookoutforthemselves
makingwinnersfeellittleneedtofosterbroadersolidaritiesand
losersfeelcynicalaboutworkercontrol.
Thevortexofcompetitivepressuresalsospinsitswayintotheinner
workingsofthecollectives,givinggreaterweighttoskillsthat
marketsdeemmorevaluableandreproducingin-planthierarchies
thatboostpro tability.
Thedivisionscanalsobeself-in icted,aswhenWolinsistson
categorizingworkersalongtheaxisofproductivity,determinedon
thebasisofwhethertheymakeadirectcontributiontothecreation
ofasurplus.Whateverpurposethismightserveinanalyzing
capitalism(dubiousatbest),thedistinctionisespecially
counterproductiveinbuildingclass-basedsolidarity.
Givingsomeworkersahigherstatusthanothersreinforcesthe
lowerstatusoftenaccordedtolaborerslikeo ceworkersand
cleaners(generallymoreprecariousworkers,oftenwomenand
immigrants).Theverbalgymnasticsofdescribingso-callednonproductiveworkersasneverthelessimportantorlabelingthem
enablersdoeslittletoequalizetheirstatus.(Similarly,telling
lower-paidfast-foodworkerstheyarelessexploitedthan
autoworkersbecausetheydontproduceasmuchsurplusvaluedoes
littletobuildbondsofsolidarityacrosstheworkingclass.)
Therearereasonstohopeworker-controlledenterprises ourish
economically.Buttheirsuccessdoesnot,byitself,producea
workingclasswiththecapacitiestowinthecomingpoliticalbattles.
Mondragon,themostsuccessfuloftheco-ops,isagaininstructive.
FoundedbyanantifascistCatholicpriestnamedFather
Arizmendiarrieta,Mondragonwastoleratedandevensupportedby
theFrancoregimebecauseitwasseenasanentrepreneurial
alternativetoworking-classactivismandsocialism.
Thatanti-radicaltendencysurvivestothepresent.Mondragon
workershavebeennotablyabsentfrommuchoftheideologicaland
culturalcurrentsswirlingaboutintherestoftheBasqueand
Spanishworkingclass.Thoughtheyhavesometimesparticipatedin
broaderstruggles,theeconomicleadershipofMondragonhasnot
beenmatchedbyapoliticalleadership.

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Thisisnotjustamatteroflacklustersolidaritybutanindicationthat
Mondragon,forallitsachievements,acceptstherulesofcapitalism
andtriestocarveoutacompetitivespacewithinit.Weliveina
marketeconomy,itspresidentrecentlystated,adding,andthat
wecannotchange.
Ingrapplingwiththedilemmaofcompetitivesuccessversusclass
formation,onepointmustbemade:tryingtoenactpoliciesthat
leveltheplaying eldisthewrongapproach.Whatsneededisto
changetherulesofthegame,sothatthemeasureofsuccessisnota
competitivenessthatunderminessolidaristicandegalitarian
values.
Changingtherulesofthegamemeansconstrainingthedisciplining
powerofcompetitionlimitingratherthanextendingfreertrade,
andconstrictingtheabilityofcapitaltoremoveproductive
enterprisesfromthecommunitiesthatenrichedthem.Thisalso
impliesgivinggreaterweighttoinward-orienteddevelopmentand
introducingasigni cantdegreeofeconomicplanning.
Movinginthisdirection,ratherthanworkingwithintheexisting
rulesofcapitalism,requirestakingthestruggletothestatenot
justagainstthestate,butinsidethestateandwiththegoalof
transformingthestate.
Thisbringsusbacktothequestionofagency.Ifthekeytoachieving
aparticipatoryeconomyliesinthecapacitytochangetherulesof
thegameandtransformthestate,thentheevaluationofWSDEs
andco-opscantrestonwhetherthisorthatenterpriseis
economicallysuccessfulbutwhethertheycontributetobuildinga
workingclasswiththevision,con dence,classsensibility,smarts,
andinstitutionalstrengthtodemocratizetheeconomy.

Politicization

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SowhatwouldthepoliticizationofWSDEs,co-ops,andrelated

formsofparticipatorydemocracylooklike?Whatdoes
acknowledgingtheneedtoconfrontthestateandbuildclass
capacitiesimplyfortheirdailyfunctioning?Howwouldthisbroader
rolechangeasthestageofthestrugglechanges?Andif
politicizationistobegeneralizedandsustained,doesntitdemand,
asacomplementtotheseprimarilyeconomicinstitutions,a
speci callypoliticalinstitutionaparty(orparties)?
Considerconsumerandcreditco-ops.Inthepasttheyoftenhad
closelinkstosocialistmovementsandasleftpoliticswaned,sodid
thepoliticalnatureoftheco-opmovement.
Re-politicizingco-opswouldmeanrejoiningthesocialist
movement:becomingactiveagaininsocialist-orientedcampaigns,
integratingsocialisteducationintotheircontactswithmembersand
thecommunity,extendingtheirfacilitiestoserveasculturaland
politicalspaces(coeeshops,bookstores,pubs,placesforpublic
forums).
Especiallyintriguingisthesuggestion,whichhasrootsinsomepast
practices,thatco-opssetasideaportionofsalestofundunion,
community,andsocialistorganizing.Buyingco-opwouldthen
amounttomorethanjusttheexpressionofaconsumerpreference.
Itwouldsignalacommitmenttoalargerpoliticalproject.
Inthecaseofworker-ownedenterprises,politicizationrepresentsa
moreradicalchallenge.Asemphasizedabove,astrategybasedon
takingoverplantsabandonedbycapitalwhileacceptingthe
competitivestraitjacketofcapitalistmarketsmaymakeacertain
practicalsense.Butitsimplycannotbeabaseforsocial
transformation.Politicizingworkerself-managementdemandsa
focusonthecontextwithinwhichtheyoperate.
Toaccomplishthispoliticization,WSDEsmustbeintegratedinto
largercomplexeswhetherorganizedonaregionalorsectoral
basisthatdirectlymeetsocialneeds,andtheyneedtobeatleast
partiallysheltered,throughasigni cantdegreeofplanning,from
thedestructivepressuresofcompetition.Thescalerequiredfor
suchplanningcanonlyhappenatthelevelofthestate.

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Forhispart,Alperovitzhasconstructivelypointedtothe
democraticimportofmunicipallyownedutilities.Thisfocusonthe
localstateshouldbeextendedtomanufacturing,construction,and
serviceoperationsconstructingsovietsofasort.Whatthis
strategyemphaticallydoesnotseekismoreeectivelyinserting
workplacesintoglobalvaluechainsandinternationalcompetition.
Ifaspartofastruggleforinward-orientedasopposedtofreetrade-leddevelopmentstateandpara-stateinstitutionscould
beginguaranteeingmarketsforlocalproduction(e.g.,hospital
beddingandsupplies,booksforschoolsanduniversities,material
andequipmentforconstructionandenvironmentalrefurbishing),
thismightbuttresstheprospectsofworker-managedenterprises.
Sotoocouldthecreationofapubliccorporationtooverseethe
conversionofplants(insectorslikeauto)toaddressthiscenturys
long-termenvironmentalneedsvis--vispublictransportationand
theenergy-e cientrefurnishingoffactories,o ces,andhomes.
Amongotherthings,thepresenceofsuchstructuresmightitself
encourageworkersconcernedaboutthefutureoftheir
workplaceandawareofitspotentialproductivecapacitiesto
initiatetakeoversthatcouldthen tintotheoverallenvironmental
orsocialprovisionsplans.
Thisisnewterritory.Thereisabundantevidencethatworkerscan
organizeworkplaceproduction,buthavelittleexperiencein
democraticallydevelopingbroadersocialplansthatcanalso
incorporateenoughworkplaceautonomytomakeworkerselfmanagementmeaningful.
Howfarthiscangowithincapitalismshouldntbeexaggerated,but
testingitdoesseemfruitfulfordevelopingtheeconomicskills,
institutionalabilities,andpoliticallinksaswellashighlighting
themanyunresolvedproblemsessentialformovingontomore
ambitiousinterventions.
Aparticularlysigni cantblindspotfortheworkplace-control
movementhasbeenpublic-sectorworkersespeciallyconsidering
thattheirunionsareessentiallythelastbastionoftradeunionism.
InWolscase,thisoversightseemstofollowfromhisminimal
interestinnon-productiveworkers.

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Butthebroaderreasonfortheneglectliesintheabsurdityof
applyingsegmentedworkerownershiptothepublicsector;it
doesntseemespeciallyworthwhiletothinkaboutworkersinthe
taxdepartmentorwelfaredepartmentowningtaxcollectionor
thedistributionoffoodstamps.
Yetifthetransformationofthestateisparamount,thentheroleof
public-sectorworkersisalsocrucial.Atworst,ignoringitmaylead
toworkersconcernedwiththeirsectionalinterestsbecoming
adamagingobstacletothestatesdemocratization.Butatbest,it
couldseriouslybroachtheissueofmovingustoadierentkindof
state.
Inthepast,somepublic-sectorworkershavetentativelyforged
allianceswithclientsaspartofaneorttoprotecttheirjobsand
enhancetheirbargainingposition.Couldthisdefensivetacticbe
extendedtoinstitutionalizenewworker-clientrelationships
directlywithinthestatee.g.,settingupworker-clientcouncils
insidethewelfaredepartmenttoaddressproblemswithwelfare
provision;establishingteacher-parentcouncilstorestructurethe
schoolsystem;andformingsimilarcouncilsforhealthcare,housing,
transportation?
Thinkingthroughthesequestionsofpoliticizationwhetherit
meansrethinkingindustries,workersrelationshiptothestate,or
workersrolewithinthestatemakesitpossibletoconceiveofthe
projectofself-managementasnotbypassingunionsbutperhaps
evenfosteringtheconditionsfortheirrevival.
Towhatextentdoestherevivi cationofunionsandthereemergenceofstruggleamongtheirmemberslieindevelopinga
broaderclasssensibilitythatlinkscommonfrustrationstotheneed
forlargerworkplaceandcommunityclasssolidaritiesthatcan
challengewhatisproduced,how,andforwhomquestionsbasic
tothequestionofself-management?
Oneofthefewcasesinwhichthestatedoescomeupinthe
participatoryeconomyprojectisinparticipatorybudgeting:a
processthatprovidesordinarycitizensthechancetoshapelocal
priorities.Therearegoodreasonstocheerleadthisexercisein
democratic nancing.

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Participatorybudgetingbringsinmarginalizedconstituenciesand
developsindividualandcollectiveliteracyaboutaparticular
dimensionofstateactivity.Andtheprocessisattractivetosome
becausetheyseeitastakingpowerfromthestateandgivingittothe
base,ratherthanenteringthestate.
Theproblemis,bytheirverynature,budgetsfunctionas
discipliningconstraints.Ifraisingtaxes,controloverinvestment
andjobs,andrestrictionsoncapital owsareoutsidetherealmof
discussionasisthenorminthesepecuniarydiscussionsthen
themostimportantchallengeisobscured:howtomodifyor
overcometheconstrictionspeopleface.
Participatorybudgetsthusenduplimiting,notexpanding,political
possibilities.Inthiscontext,politicizationwouldincludenotonly
equalizingopportunitiesforparticipation(transportationcosts,
childcare)anddemocratizingtechnicalexpertise(bypushing
bureaucratstopopularizetheirexplanationsandbecoming,asa
Brazilianacademicsuggested,technodemocrats),butcarrying
outtheeducationalandorganizingworktochallengebudgetary
constraintsandlocatetheminthepoliticaleconomyofclasspower.
Atpresent,thepoliticizingofWSDEsandco-opswouldrevolve
aroundconsciouslyintegratingpoliticalconcernsintotheir
economicactivitybuildingaclasssensibility,developing
relationsacrosstheirconstituentparts,engagingthestate,and
takingstepsthatbegintheprocessoftransformingthestate.
Yetaswiththeeconomy,piecemealtransformationhasitslimits.If
andwhenthismovementconfrontsanewstagebroughtonbythe
largermovementitispartofsuchasaleftgovernmentcomingto
powerwithacommitmenttodemocratizethestatethechanged
circumstanceswouldraisethestakesforworkerself-management.
Thecontinueddependenceofthenewgovernmentandsocietyona
hostilecapitalistclass,alongwiththestatesstill-undeveloped
capacitytotakeover,restructure,anddemocratizemajorsections
ofcapital,wouldmakeaperiodofuncertaintyandcrisisvirtually
inevitable.
Itisatthiscriticalmomentthattheeconomicskillsandpotentialsof
workerself-managementcouldescapetheirmarginalstationwithin
capitalismandbecomeacentralpoliticalfactor.

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ItisherethatthesymbioticrelationshipWrightspeaksof
betweenalternativeeconomicinstitutionsandrelatedmovements
ontheonehand,andthestateontheothernaveinordinary
timesundercapitalismwouldalsobecomemeaningful.
Asco-opsandsocialmovementsactedinconcerttocarryoutthe
collectiveprovisionofbasicnecessitieslikefood,health,energy,and
transportation;asland,idlefactories,andportsweretakenover;as
plantandequipmentwerepreventedfrombeingrelocatedabroad;
asworkplacecouncilswereestablishedandlinkedtoothersinthe
sectororregionasallthisexploded,workerandcommunity
self-managementwouldtakeonaqualitativelynewmeaning.And
ifitweretobesuccessful,itwouldalsohavetodemandthekindof
practicalstatesupportthathelpsmidwifeadierentkindofstate.
Finally,thepoliticizationofworkercontrolandco-opscannot
happenwithoutintroducinganotherinstitution,onethatstraddles
theworldofworkerenterprisesandco-opsasapartially
autonomousrealmofactivity.
WhatThadWilliamsonhasobservedofWrightsrealutopias
appliesevenmoretotheotheradvocatesofalternativeeconomic
institutionslikeco-ops,workerself-directedenterprises,andall
theircousins:Considerationofpoliticsasapartiallyautonomous
realmofactivitygenerallytakesabackseat.
Neitherthepoliticizationofthealternativeeconomicinstitutions
northefuturetransformationofthestateispossiblewithoutthe
existenceofaspeci callypoliticalinstitutionasocialistparty(or
morelikely,parties)groundedinthesealternativeinstitutionsbut
withalarger(andlonger-term)visionandstrategicsensibility.
Itsdistinctroleistofocusnotsomuchonmoreradicalpolicies
thoughthatsimportantaswellbutonbuildingtheindividual
andcollectivecapacitiesforanalyzingandevaluating,for
democraticdeliberationandstrategizing,fororganizingand
buildingsolidarity,andforendeavoringtomakeworkersintoa
classwiththeabilitytowinstatepowerandtransformthestate.

TheTaskAhead

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Thereisnoquick xfortheLeftsimpasse.Theattempttorevive

ideasofself-managementareadmirableinthattheyhighlightthe
fundamentalimportanceofchallengingprivateproperty.
Buttheprojectsdominantpopulismunderestimatesthelimitsof
doingsowithincapitalismandoverlooksthefundamentalnecessity
ofcomprehensivelychallengingandoverturningexistingproperty
relationswhichcannothappenwithoutdevelopingtheclass
cohesionandinstitutionalcapacitytoconfrontthecapitaliststate.
Theresultistheworstofallworlds:whileself-managementis
con nedtothefringes,thedominantcorporationscontinueontheir
merryway;thehatedstateisignoredandlefttocontinue
hammeringus;thereareoccasionaloutburststhatabsorbenergy
butleavelittleofsubstancebehind;theworkingclass,forallits
potentialsasanactor,stumblesaimlesslyon.
Untilthediscussionispoliticizedsuchthatitcangobeyonda
(legitimate)critiqueofstatism,andbegintoseethedemocratic
transformationofthestateaspartandparcelofeconomic
democratizationandthedevelopmentoftheclasscapacitiesto
addressthisismadeaprioritythisnextbigideawillonlybethe
Leftslatestfailure.

ThenewissueofJacobinisoutnow.Buyacopy,oraspecial
discountedsubscriptiontoday.

3.10.16
Sam Gindin was research director of the Canadian Auto Workers from 1974
2000 and is now an adjunct professor at York University in Toronto.

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