The social web and its social contracts: Some notes on social antagonism in
netarchical capitalism
by Michel Bauwens

http://www.re-public.gr/en/?p=3D261

When we talk about the social web, we have to be careful about which aspect
it is that we are talking about:


   - Are we talking about its technological affordances: the new levels
   of participation that it allows
   - Are we talking about the social web as a process of direct creation
   of value by produser communities?
   - Are we talking about the associated business models?



*1.*

The social web facilitates an unprecedented level of social sharing, but it
does so mostly through the vehicle of proprietary platforms. The issue
therefore is to clearly distinguish the invisible architecture, i.e. the
'protocol' of the facilitating technology, which needs to be separated from
the ownership issue as such. This protocol needs to be sufficiently open to
allow for the process of sharing to occur, but at the same time, it has to
be 'sufficiently closed' to create scarcities that can be exploited by the
platform owners, and this is a clear line of tension between the user
community and the corporate hierarchy. For platform owners, openness will
always be a double-edged sword. On the one hand, it is beneficial to open u=
p
and create a stronger and wider commons, from which more value will be
derived, on the other hand, total openness also means total loss of control=
,
and therefore difficulties in capturing value for one' own shareholders. Th=
is
means that tension between the community of users and the platform owners i=
s
structural, as well as the competitive antagonism between the different
platforms competing for user adherence.


We therefore believe that the social web obeys to an underlying, but
unstable social contract. This social contract basically says, from the
point of view of the users: we appreciate the facilitation of the sharing
processes, and we understand that operating such platforms comes with a
cost, and with an expectation of profitability. We therefore allow our
attention to be monetized through advertising, as long as it does not
interfere with our sharing. If the interference crosses a certain line of
acceptability, we will either
revolt<http://www.boingboing.net/2007/05/02/digg-users-revolt-ov.html>,
or go elsewhere.


Note that the social web has as basic orientation the convergence of
individual and collective interests, that it is geared around the sharing o=
f
individual expression, and that it therefore is based on weak ties in the
user community. Such weak ties are the very reason that the user communitie=
s
are not easily able to create their own platforms, and why they need third
parties.


The social web and its sharing economy should not be confused with the
commons economy, which has its own infrastructure. The commons economy
exists when the communities are geared towards the production of common
artefacts, which require coordination and engagement, and therefore create
stronger ties. Because of these stronger ties, we notice that
commons-oriented projects, unlike the sharing oriented platforms, have thei=
r
own infrastructures. Instead of a dual structure between user community and
proprietary platform, the commons economy has a triune structure, combining
the self-organized produser communities, democratically governed for-benefi=
t
institutions which insure the necessary infrastructures, and an ecology of
businesses which create marketable scarcities around the commons.


*2.*

The former point is very important. Though they are intertwined, and hybrid
forms may exist, generally it is crucial to distinguish between the logic o=
f
sharing, and the logic of selling attention. The former is the precondition
of the latter, but the former cannot be reduced to the latter. The platform
is the precondition for the sharing, and the sharing a precondition for the
attention economy that will benefit the platform owners. The overwhelming
majority of sharers are not in the game for personal monetary gain, but
rather to exchange creative expression, for which they obtain various
non-monetary benefits, such as reputational gains. The notion of crowding
out, means that the logic of sharing, or the logic of commons production fo=
r
that matter, cannot be contaminated by the competing logic of monetary gain=
.
Introducing monetary gain actually destroys the logic of sharing. The latte=
r
only works if voluntary engagement is combined with universal accessibility=
,
and there is no perceived inequity between the volunteers. This is the
reason why revenue sharing schemes are generally counterproductive. The lac=
k
of revenue sharing cannot therefore be equated with a simple concept
exploitation, and any calls for 'fair revenue sharing' are actually
counterproductive, since they would not only reintroduce capitalist and
monetary logics in the sharing community, but would actually also destroy
and displace the post-capitalist sharing practices.


There is of course an extra issue. While the users create social wealth, an=
d
the platform owners monetize it, what kind of return can be created? Google
and YouTube have shown to what extent monetary value can be extracted from
such social processes, but the user communities generally do not receive a
direct monetary return. The proper way to create a return for the positive
externalities of the sharing or of the commons, is not through revenue
sharing but through benefit sharing. The latter is characterized by a
generalized support for the infrastructure of sharing or commons production=
,
by a sustenance of the user community, and in such a way that no crowding
out or inequity occurs.


In the case of commons-oriented production, or assuming that some sharing
communities might have their own platforms, the situation is quite
different. The case of the Wikimedia
Foundation<http://wikimediafoundation.org/wiki/Home>,
which manages the infrastructure of Wikipedia, but not its value-creation
processes, shows that for-benefit institutions are not naturally geared to
capital accumulation or profit maximization, as we see the Wikipedia
refusing advertising (as does, for that matter, the strong community
oriented logic of Craigslist <http://www.craigslist.org/about/sites.html>),
and the blog of the Mozilla Foundation <http://blog.mozilla.com/> has
featured discussions about the difficulty to allocate financial revenue in
the context of the crowding out effect. Given this alternative, we cannot
simply wish, if we deem monetization to be exploitation, call for an
expropriation of that revenue, that it would simply be returned to the
sharing communities. As indeed, doing so, would destroy the sharing logic,
by making the monetary logic dominant, causing the crowding out effect to
occur.


There is only one exception to this rule. Some platforms are specifically
geared towards the freelance or minipreneurial creation of exchange value
(threadless etc=85), and therefore, in such cases, the issue of revenue
sharing and monetary exploitation can arise.


Now, if all the above is correct and properly understood, then it follows
that certain types of leftist discourse, about the exploitation of free
labour, and the alienation of the user communities, are profoundly misguide=
d
and politically counterproductive.


The fact that user communities, both in a sharing or commons context, seem
to have no beef with their proprietary partners, is not that they are
alienated, but on the contrary, that they have a correct interpretation of
their vital interests in the preservation of sharing and the commons as
fundamental social advances with clear immediate personal and collective
benefits. In the case of sharing, they naturally rejoice in the empowerment
of the sharing, and understand the necessity of a sustainable business
model; in the case of the commons, they understand the non-reciprocal natur=
e
of peer production, from which it inevitably follows that commercial use is
acceptable, as the universal availability implies free usage according to
need. Some of these usages may indeed be commercial. It is not a coincidenc=
e
that the radical commons-oriented licenses such as the
GPL<http://www.gnu.org/copyleft/gpl.html>,
allow for commercial usage, while the most chosen amongst the more moderate
sharing oriented Creative Commons license <http://creativecommons.org/>, ar=
e
the ones prohibiting commercial usage. The reason is that the GPL creates a
true commons with a full non-reciprocal logic, and the CC is merely a
license to modulate intensities of sharing under the control of individual
proprietors.


A true commons does not require revenue sharing, but benefit sharing so tha=
t
the commons can be sustained, which is also in the self-interest of
participating companies.


The political stress on exploitation is counterproductive because it
requires to convince the vast majority of happy sharers and peer producers,
that their joy in sharing is misplaced and alienated; it is in fact often a
call to introduce monetary and capitalist practices (revenue sharing) in th=
e
sharing and peer production process. No industrial worker needs to be
convinced that he is exploited, this consciousness comes naturally, he/she
can feel it in his bones. Similarly, the consciousness that the sharing and
commons orientation are positive social developments comes equally
naturally.


This is not to say that nothing can be done on the monetization side, in
favour of institutional vehicles which would increase equity. Both sharing
and commons-oriented communities would benefit from forms of monetization
that are increasingly ethical and in line with the values of sharing.
Therefore, rather than have the monetization happen through purely for
profit companies, there could be a push for different forms of capital. An
example of this would be the creation of cooperatives, such as for example
the OS Alliance in Austria <http://osalliance.com/about>.


The key is to remember that non-reciprocity is only possible in the sphere
of non-rival immaterial production, but that the sphere of physical
production, where monetization can occur, requires that investment capital
needs to be returned for new cycles of production. This can happen through
market exchange, or through renewed economic forms based on reciprocity.


*3.*

What then is the true social configuration of antagonistic interests, and
the lines of tension that are worth concentrating one's energy on?


Not just the knowledge workers, but in fact all producers, are reconfigurin=
g
at least part of their lives to the direct social production of use value
through sharing or a commons approach. Peer production is not limited to
highly educated knowledge workers but its principle of equipotentality and
the self-selection of granular tasks mean that it is accessible to all
producers. Because knowledge is at the core of the networked information
economy, such practices are at the very core of our society, as Yochai
Benkler has convincingly
explained<http://www.benkler.org/wealth_of_networks/index.php/Main_Page>.
Because peer production is economically more productive, politically more
participative, and more distributive as a form of ownership, it is also a
post-capitalist mode of value creation that will inevitable move to center
stage.


But peer production also reconfigures the ownership class. The twin pillars
of cognitive capitalism, namely the extraction of surplus rent through
intellectual property monopolies, and the monopoly of the means of
distribution, are being systematically undermined by the distributed
networks. Marginal costs of reproducing informational artifacts, the
copy-ability of the informational core of high value physical products, and
the social web as a universal distribution platform for informational
artifacts and for open design of physical products, are displacing such
monopolies.


It is therefore logical that, out of self-interest, sections of the
ownership class convert themselves to the position of netarchical
capitalists, those who enable and empower the sharing communities and
entertain benefit-sharing agreements with the commons-oriented production
communities.


What is the relative position of produsing communities and the netarchical
platform owners? The short answer is that they have both convergent and
divergent interests.


To the degree that these platform owners enable sharing, they are allies of
the peer producers and sharers. To the degree that such platform owners nee=
d
enclosures and scarcities to enter a competitive market, the interests
diverge. What is needed therefore is a literacy of participation, not geare=
d
towards the opposition against an abstract 'exploitation of free labour',
but rather on the invisible architectures of sharing (which need to be trul=
y
open, participative and commons-oriented), and against the restrictions to
freedom that proprietary capture requires.


On the macro-level, again the netarchical capitalists can be allies to the
degree that they join the agenda for social policies geared to the promotio=
n
of sharing and commons production (see the stance of Google on the open
spectrum as a positive example of policy convergence); but to the degree
they may want to enclose openness the interests are divergent.


*4.*


To flourish, the sharers and commonists need three things:


1) open and free raw material so that the sharing and common production can
occur. Produser communities will naturally favour such approaches such as
free software, open content, open access, etc=85

2) they need the lowest possible threshold of participation, so that any
motivation, any granular contribution, can become possible and productive.

3) they need to protect the resulting commons from private appropriation,
this require attention to the particular licensing requirements and
vigilance against expropriation strategies, for example the a priori signin=
g
away of creative rights to platform owners.


All this requires a literacy of participation, an intelligent discourse of
the relative convergent and divergent interests, not a knee-jerk opposition
to platform owners.


The platform owners of the social web have a double logic. On the one hand,
they need sufficient levels of openness for the sharing to occur, while the=
y
also attempt partial enclosures to dispose of marketable scarcities. This
competing logic is a line of tension, and conscious user communities can
ensure that openness is primary and not contaminated by proprietary logics.


The social web may well be a transitionary stage. It is the result of the
relative weakness of the sharing communities, but as the stronger
commons-oriented communities are multiplying, they may very well create new
distributed and open architectures that could eventually displace
proprietary platforms (though this is not a certainty). These
commons-created platforms can/could then be used by the sharing communities=
.


The need for capital which these platforms represent, is not just an
objective necessity, but results from policy choices in the realm of
infrastructure, and the lack of alternatives. Centralized server parks, suc=
h
as the ones used by Google, could be replaced by true distributed peer to
peer systems, using user-generated capital, therefore undermining the
exclusive need for owned platforms. The call for open social graphs, for
open and interoperable infrastructures, will probably gradually diminish
lock-ins. At this time, the platform owners may switch from a focus on the
creation of artificial scarcities, to the creation of true added values, as
is now the case around Linux and some other open source software projects.
Again, the realization for the need of such distributed infrastructures is =
a
matter of literacy.


*5.*


Some 'macro-societal' remarks to round-up our reaction.


Capitalism though of course seemingly very much alive, is at the same time =
a
dead horse. The long-term continuation of a system of infinite growth withi=
n
a limited environment is a physical and logical impossibility. I also
believe that a stress on a anti-capitalist discourse, after two-hundred
years of failure, is in all likelyhood counterproductive.


It is more interesting therefore to think in terms of how peer production,
which we believe will be the core of social innovation and the creation of
value, will intersect with the world of physical production of scarce
products. Or in other words, how will the commons, or how should the
commons, relate to the market, once the market is divorced from the
capitalist logic of infinite growth?


What we seen as likely is that peer to peer will be the dominant logic of
value creation, and that this value creation of immaterial value, will take
the form of an abundant and reproducible commons of open knowledge, i.e. it
will exist in the form of use value and not exchange value.


As this logic of abundance is not translatable to the allocation of scarce
physical goods, it will need to be combined with other forms of allocation,
the market being one of them, along with others in what we believe and hope
to be a pluralist economy of peer-informed formats.


Getting there requires a powerful social movement that combines
transgressive and adversarial tactics when necessary; a constructive
approach towards the creation of new social life forms through enabling
infrastructures, i.e. the creation of the new world within the old; and the
necessary engagement with existing institutional forms in view of their
adaptation to new social needs. The key aim is reversing the logic of
pseudo-abundance in the physical world, and the creation of artificial
scarcities in the immaterial world. In this phase, we believe the stress
should be on world-construction, and in this endeavour, those that enable
social sharing and commons production are the allies of the produsers. What
is needed is a constant pressure towards openness based on a deepening
literacy of participation. Adversarial tactics are necessary when the
possibility for free cooperation is attacked, while institutional engagemen=
t
will become possible once the social movement reaches a critical mass which
it does not yet have.


The creation of a new social order is never an easy matter, and not an
automatic process, but the systemic crisis of the present regime, the
technological affordances of the social web, and the new ways of being and
knowing of the produser communities bode well. The creation of a new social
order is also never an easy matter because it generally requires
transitional phases. We believe the following in that respect: because no
ruling class is fully suicidal, the advanced sections of the elite are
already realizing the necessity of a major reformation towards green
capitalism. Such a green capitalism, ultimately a contradiction in terms,
will necessitate further advances in openness, participation, and commons
creation, which will create further conditions for the advancement of the
peer to peer logic towards the core of value creation and as a core social
logic.

If our views are correct, new ways of thinking are required that are not
just a repeat of traditional arguments against capitalist exploitation, but
require the continued strengthening of sharing and commons communities as
the key agents of social change.


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