Assets in Common

* Book: Assets in Common: Stories of Business and Community Leaders Remaking the Economy from the Ground Up. By Charity May, Jay Standish et al. Infrastructure for Shared Ownership, 2024

URL = https://www.assetsincommon.org/

"We showcase examples that already work at scale, led by people who had the odds stacked against them. These leaders have taken risks few have been willing to take, and have done so at the rugged interface between communities in need and modern regulatory environments."

Contextual Quote

"The United States economy is overdue for a shift towards equity and democratic wealth building. As authors, we set out to reveal lesser-known corporate forms and financial structures that leaders can use to enable widespread transformation. We have compiled a curated selection of case studies that demonstrate outstanding examples of an alternative economic paradigm in action. In particular, we are excited about the potential of using shared ownership forms as the core instrument for business ownership and community asset stewardship.

This body of work is an attempt at figuring out how to scale steward ownership and shared ownership.

...

Throughout this book, we describe this in several ways. We use language like ‘connective entities’ and ‘networked businesses’ to describe what we call Infrastructure for Shared Ownership."

- Chelsea Robinson, from the Introduction

Description

"Some of the amazing companies profiled here include the Industrial Commons, Enspiral, Mondragon Corporation, Obran Cooperative, Goodworks Evergreen, Saradex, Sumitomo Group, Clegg Auto, and Calvert Community Investment.

One of the most intriguing aspects of the book is its discussion of what will be for many readers wholly new business models:

• Employee-owned holding companies

• Cross shareholding between banks and businesses

• Business-to-business marketplaces and currencies

• Municipal strategies for assets holdings

• Non-profit ownership of business networks "

(https://solidarityhall.substack.com/p/the-power-of-moving-assets-into-the)

Excerpts

The Concepts Defined

Chelsea Robinson:

"Shared ownership and steward ownership are key concepts throughout the book, so let’s define them for you up front:

• Shared Ownership refers to business and property owner- ship structures that distribute equity and control among a wider group of stakeholders, such as employees, customers, or community members. Shared ownership models create more equitable and engaged economic participation through structures like cooperatives, employee stock ownership plans (ESOPs), and community land trusts.

• Steward Ownership is a corporate governance model that

ensures enduring independence and mission-driven focus by placing a company’s shares in a trust or foundation. This preserves the organization’s purpose and values beyond the involvement of any individual leaders. Central to steward ownership is the strict separation of economic interest and governance. Rather than being privatized, profits are either reinvested in the business and its stakeholders or donated to charity. When shared and steward ownership are combined, we protect assets and businesses for the long term, align financial interests with mission and values, incentivize reinvestment instead of extraction, and build wealth for all stakeholders.

This book extends the powerful concepts of shared ownership and stewardship by envisioning the integration of these units into somethinggreater.

If we work together to build infrastructural institutions between our entities and assets, we can create competitive ecosystems that more and more entities can opt into. Building infrastructure for shared ownership will promote the development of an economy running on different incentives and principles. If matured, these kinds of ecosystems could offer resilient, scalable alternatives to the default financial system.

..

Even after leaders restructure their community assets or company into a stewardship format, they still experience the hostile pressures of the extractive economy. Because of this edge effect between shared and steward ownership formats and the rest of the economy, this book shows how we can build corridors of connection between institutions. Unlocking mutual support between entities can buffer against adverse pressures to place profit above all else. It is possible to build and share banking systems, currencies, employer-of-record companies, no-interest loan pools, warehouses, and heavy machinery libraries.

...

• Conscious Consolidation: Many leaders are aggregating assets into unifying

entities like holding companies or multi-stakeholder cooperatives. Achieving this via typical structures can be a slippery slope to monopoly and cartel behavior.

However, when designed with shared ownership and stewardship, these can create value for stakeholders and long-term missions. Conscious consolidation can help with efficiency gains and greater influence in the market.

• Shared Balance Sheets: Pooling assets in shared legal containers can cre-

ate mechanisms for resilience and liquidity at scale.

Putting many buildings, employees, business units, funds, or loans onto shared balance sheets enables pre-tax internal trade. These larger balance sheets can be leveraged for growth, acquiring capital, extending credit to allies, or buffering against losses and layoffs.

..

• Companies Cooperating: Connected entities create infrastructure for shared

ownership. Methods like cross-shareholding, or co-investment in co-owned services companies create connective tissue between businesses and assets. Entrepreneurship typically focuses on developing and leading one project, but infrastructure projects require entrepreneurial creativity in managing relationships between entities.

• Internal Network Trade and Complementary Currencies for Monetary Sovereignty: Monetary policy is typically considered the role of

the state. It determines how the central bank controls the money supply and promotes price stability. It involves managing interest rates, setting bank reserve requirements, and influencing credit availability in the economy. These kinds of policies can be generated within networks of businesses with shared resources. Complementary currencies or internal network trade can be opportunities to redefine the role and value of money. Sovereign economic spaces can encode new incentives and imbue meaning to money itself."

• Pools and Closed Circuits: Infrastructure for shared ownership frequently

emerges within walled gardens. Limiting participants can help mitigate the downside while generating shared benefits. In the default economy, this is achieved through systems like credit scores. In contexts of shared ownership and stewardship, there may be criteria of ‘fit’ for participating in a pool. One business’ performance profile may make it more or less suited to joining a group of other businesses.

• Seed Assets: In multiple case studies, people have used a seed

company or an asset base to start a network of entities. Seed assets may be a fully functioning, existing entity such as a profitable business or a piece of land.

Seed assets may already have monetary value in the default economy, which allows them to convert that value into starting a shared utility. Seed assets may also be of sufficient size and stability to invite other smaller entities to join their fray. Many business owners could consider whether their business can play this role. Many municipalities could consider whether their public assets can be carefully financialised for regional development. "

More information

• Video: Derek Razo and Chelsea Robinson on Holding Assets in Common‎

• Infrastructure for Shared Ownership