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By :Mark Wilson
I am the creator of TopXML. I am available for international and local (Australia) contracts. I am a Solution Architect/Business Analyst. I have worked in IT in several countries (NZ, Australia, South Africa, UK) building and training teams for government and very large non-governmental organizations. I am ex-Microsoft Consulting Services. I wrote the first book on Microsoft XML published in 2000 called XML Programming with VB and ASP. Most recently I have been building tools for the SEO industry. Ask me for a 37 point SEO health-checkup for your website.
First posted :07/15/2000
Times viewed :1611

 
    

The Rise of the Cooperative Economy

Table of Contents

 Forward
• Money, Money, Money
• The Evolution of Revolution
• Guan-shi
• The Dissolution of Management
• The Power of Streams
• The Balance Shifts
• About This Paper

by Kurt Cagle

Foreword by:
Mark Wilson, creator of TopXML

I am very happy to have the opportunity to write this foreword as I share the same thoughts and feelings as Kurt does.  I hope that by writing this foreword, I can encourage readers of this article take the time to understand what is written here:  we may be entering a time in the world when supply can accurately meet demand, wherever that demand may be around the world.  XML can achieve this, and the result could be new, empowering and wonderful!

This insightful article, written by Kurt Cagle, strives to understand the market forces which may have resulted in XML.  In essence, the message is the same as John E. Simpson's friend's question - can XML cure world hunger?

The article begins at the beginning and covers a few hundred years of commerce... and postulates at the end that perhaps (finally!) the hierarchies and management theories will begin to fade and dynamic streams of data will become the norm.  He also suggests that we could even be entering a time when those who create the wealth actually begin to earn the wealth they create rather than have management and huge corporations gather the benefits!

These concepts, as Kurt will agree, are not new.  There are many other thinkers who are tinkering with these empowering concepts and we are all influenced by the seeming success of Apache and Linux.

Books like (excellent) The Post-Corporate World : Life After Capitalism (by David C. Korten) stimulate people to think about the issues that need to be resolved first, such as:  

  • Corporations (who have the same rights and protections as people do), are they too powerful?  Do they need to be treated as humans and given the same rights?

The internet is a great leveller, and websites like WTOWatch.COM have sprung up to prod our thoughts.

But above all, the possibilities for the use of XML to ensure supply meets demand and to enable the new economy is exciting.

Read on...

Money, Money, Money

For several centuries, Western economy has been predicated upon the notion of competition. The American capitalistic society is perhaps the ultimate embodiment of this notion -- we compete for money and power, and the captains of industry that are most lionized are those that are best able to "defeat" the opposition -- to put competitors out of business, to win market share, to beat your business rival in securing a deal. The companies that survive -- the people that survive -- reap the material rewards of such battles: the million dollar homes, the sports cars, the lavish lifestyle, the adulation of a press hoping to secure more advertising dollars from your company.

That is to say, this economy uses monetary compensation both to reward success and to indicate it. The culture promotes it, of course -- those with more money can purchase more goods, and the goods that are purchased are often valued far beyond their cost of manufacture and distribution. Thus in all of advertising a subliminal message gets passed: monetary success is desirable, to be rich is to be young forever, to be famous, to be powerful. It is a message that is seen in every car ad, every fashion spread, nearly all television shows.

Capitalism has defeated its most obvious enemy: Communism. The danger in the Communist model was not in its insistence that labor take control of its own destiny and throw out the elitists (though that may have been the perceived danger). Rather, the danger comes from the underlying principle of Communism that wealth and status were unimportant, that all tasks are fundamentally equal, and that the state rather than the individual should control the distribution of goods. Ultimately, each of these points were flawed. In particular, Communism makes the erroneous assumption that status is itself unimportant, when in fact it is one of the most central themes that ran through the human psyche.

At a science fiction conference many years ago I argued with author Brad Strickland for a number of hours about a point that he felt was crucial -- if you restored the imbalance in equity between people, then you'd have a truly just and fair society. I felt (and still feel) that the argument was fatuous -- there will always be those people who will seek to take advantage of others to gain some measure of power, just as there will always be those people who will willingly give up some measure of power for security. In a capitalist society, that power is measured by the ability to buy and sell; in a communist society, the same power had to be gained by force and the threat of force, because the mechanism for measuring status had been knocked out of the system. That is one of the reason that most communist countries end up becoming totalitarianistic.

Yet Capitalism is not without its problems. In a totally capitalistic state, most of the advantages go to those who start advantaged, and those who survive are the ones that are most ruthless -- the ones who will use every weapon in their arsenal to defeat an opponent, who work first towards their own betterment before the betterment of others. Over time, those that seek to help others, that work toward the betterment of society first are often marginalized, and more often than not very poor materially in comparison. A typical CEO of a company will make as much as a thousand times the salary of a teacher, even one who is considered a leading authority in his or her field. Indeed, in this day and age the disparity in wages between those people who create the products to be sold (which frequently require complex technical knowledge) and those who manage the companies that produce the products (which typically involves what amounts to a basic degree in applied sociology) is so great that the compensation packages of the hundred top senior managers in a region is roughly equivalent to the anount of wages of a million workers.

In a way, though, what is most worrisome here is not the unfairness of the inequity, but rather the effect of the imbalance. In a capitalist society, money is the primary avenue of power. For all that the official stance has been saying that the economy has been doing well, it is largely improving the lot of a very small proportion of the total population. Indeed, as measured against inflation, real wages have been falling steadily since the 1970s, and the disparity between the mean wage (the total compensation produced divided by the working population) and the median wage (a wage calculated by taking the wages earned by each individual then finding the wage of individual who falls at the midpoint between the poorest and richest person) has been rising at an alarming rate. What this means is that monetary wealth (and hence power) is becoming concentrated in a very small portion of the total population, at the expense of the rest of the population.

This has a very corosive impact upon society, effects that are evident around us. The cost of housing increases out of proportion to demand, and the size (and hence resource use) of those house have also ballooned. This makes it more difficult to buy houses, and those who do buy often have less left over to build their own personal fortunes. Speculation on everything from the stock market to lottery tickets goes up, not because people have the money to invest, but because there is an increasing sense that only by gambling your money will you have even a chance at financial security (what's wrong with this picture). Large corporations, which represent the interest of the monied class, contribute large amounts to campaign coffers to get legislation which favors them, usually at the expense of individual rights. Insurance companies make it impossible for all but the most well connected to be treated for illness, because they wield the money that runs the health system. The media promulgates this, playing on our desperation for becoming rich ("Who Wants To Be A Millionaire?"), interviewing the barely post-pubescent software mogul, making actors and athletes into icons to sell their next hundred million dollar film or product line.

Basic civil liberties erode. When people can see that large monied interests set the political agenda, determine who the candidates are, and can effectively enact legislation, the act of voting becomes largely a hollow exercise ... which helps to explain why voting has been declining steadily. When you realize that your vote is meaningless, why do it? The media pundits view this as voter apathy, yet most people do care about their future and their governance -- they just recognize a futile gesture when they see it.

Corporations know more about you than the most secretive police state ever could. Every financial transaction that you make locates you in space, time and interest. Your personal history is bought and sold every day by marketing companies without compensating (or even acknowledging) your interest in this information. To know everything about someone is to have power over him or her -- the power to threaten or compel without compensation, to punish someone by making it more difficult for them to make a living, to even shape the messages around a person so that he or she is coerced into actions without realizing that they are doing so.

This is perhaps one of the greatest curses of the information age: those who control the message and the pipes control the population, usually at the cost of making it impossible for those people who don't have the advantages to start with to make their way to the top. Without some check, such systems eventually become dystopian nightmares, where the vast majority of the populace is powerless to affect their own future.

 

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