Peter Barnes on the Commons

= Barnes' vision of the future is one where trusts, governing the commons, are on a equally footing with the powerful corporations.

Contextual Quote

"Just as the market is populated with profit-maximizing corporations, so we require a commons sector that is populated with commons preserving trusts."

Summary

From the reading notes of Michel Bauwens, 2007, source unknown. See our wiki search box for other interesting material by Peter Barnes:

The two great problems of capitalism are permanence (destruction of nature), and inequality. What is crucially missing is the recognition of the commons.

The great challenge is therefore,

   - 1) to make the commons visible
   - 2) to give it reverence
   - 3) to translate the reverence into property rights and legal institutions that are on a par with those we give to private property.

What is the commons ?

   - 1) the stuff we share
   - 2) the stuff we inherit, from nature or from the collective efforts of humanity
   - 3) the stuff we must pass on to future generations
   - 4) they tend to be large systems, both natural and social, such as the internet
   - 5) they can be free, but must not necessarily be so

Why are the commons important ?

   - 1) for most of our history, they provided basic sustenance
   - 2) it is the source of all natural resources and replenishing service
   - 3) it is the ultimate waste recycling resource
   - 4) it holds human culture
   - 5) it is essential to human communication
   - 6) we need it to travel
   - 7) it gives us community (the town square)

Concluding definition: "the commons is the sum of all we inherit together and must pass on, undiminished, to our heirs (human and non-human)".

The current market is based on the double illusion that resources are infinite and that the 'sinks' are infinite. The latter is already exhausted! It takes good stuff from the commons, and dumps bad stuff back into it.

The market is stronger than the commons, because it is backed by law (property rights), and institutins. The right of corporations is primary to all others (communities, nature, workers, etc ...). The commons also lack institutions. No institutions own the commns and are therefore willing to defend it. In fact, the commons belong to the people though the state can act as its 'trustee'. But historically, the state has NOT been a good trustee.

The essence of a trust is a fiduciary relationship. A trustee holds and manages property for another person or for many other people (f.e. pensins funds, charitable foundations, university endowments, ..).

The rules of managing a commons are well defined.

- managers must act with undivided loyalty to beneficiaries

- they must preserve the 'principal'

- they cannot favour one generation over another

- transparency must be assured

The rules are entirely congruent with commons management.

Why does the state fall short in this ?

- elected officials have short-term priorities

- as they need money, they are tempted to trade common assets for private donations

- they have no fiduciary responsibility

- the commons is only one aspect of their tasks

- the state's finances are complex, intermingled and not transparent

The role of the state must be to nurture the commons with as much vigor as it does with the market. A healthy balance is needed.

- "Just as the market is populated with profit-maximizing corporations, so we require a commons sector that is populated with commons preserving trusts."

Commons managers ..

- must protect all citizens equally, including future generations and the larger biotic community

- they must protect shared assets for the long-term

There are three types of commons:

- off-limits to all (wilderness)

- open to all (internet)

- can be used 'up to a point' only

There are three important rules:

- 1) the riparian rule: you can use it, as long as it does not diminish the resource for others

- 2) the precautionary rule: avoid problems

- 3) the polluter pays

Higher prices will be offset because the consumers are the beneficiaries of the commons' trusts, and if costs are internalized, bad users will have more costs than good ones.

Barnes' vision of the future is one where trusts, governing the commons, are on a equally footing with the powerful corporations.

All of the critical ecosystems in the world are owned by one holding company called Gaia Inc., owned by one man, one share; Gaia Inc. coordinates the companies that manage the separate ecosystems.

Barnes clearly supports the market, and concludes that it would flourish in a strong commons-based regime. Eah polluter would bear his cost equally, while the dividends, equally divided, would strengthen the demand side. This system would be sustainable over the long term.

Typologies

Open access, zero access, and limited access commons

Barnes distinguishes three types of commons regime: open access, zero access, and limited access

• Open access has as
  • Guiding principle: 'the more the merrier'
  • Mgt rules and tools: free access, shared rules
  • Market variant: long IP
  • Example: Internet

• Zero access has as
  • Guiding principle: no or harmless minimal use
  • Mgt rules and tools: no trespassing, no dumping
  • Market variant: none
  • Example: Wilderness

• Limited access has as
  • Guiding principle: use, but don't diminish
  • Mgt rules and tools: fees, tolls and licenses
  • Market variant: cap & trade, polluters market
  • Example: Atmosphere, Water, Fisheries

Comparison of private vs common property features

Private property is:

• Transferable: yes
• Universal birthright: no
• Expires at death: no
• Beneficial ownership: 1$, 1 share
• Voting Rights: 1$, 1 vote
  • of Future Generations: No stake
  • of Non-Humans: no stake
• Priority goal of mgt: Maximize profit
• Basic Mgt Entity: Corporation
• Main Income Source: Corporate profits
• Pays Dividends: yes

Common property is:

• Transferable: no
• Universal birthright: yes
• Expires at death: yes
• Beneficial ownership: 1 person, 1 share
• Voting Rights: 1 person 1 vote
  • of Future Generations: legal stake
  • of Non-Humans: legal stake
• Priority goal of mgt: preserve assets
• Basic Mgt Entity: Trust
• Main Income Source: Commons rents and fees
• Pays Dividends: yes