Here Comes Everybody

Book: Clay Shirky. Here Comes Everybody.

Citation

Clay Shirky:

"The increase in the power of both individuals and groups, outside traditional organizational structures, is unprecedented. Many institutions we rely on today will not survive this change without significant alteration and the more an institution or industry relies on information as its core product, the greater and more complete the change will be. The linking of symmetrical participation and amateur production makes this period of change remarkable. Symmetrical participation means that once people have the capacity to receive information, they have the capability to send it as well. Owing a television does not give you the ability to make TV shows, but owning a computer means that you can create as well as receive many kinds of content, from the written word through sound and images. Amateur production, the result of all this new capability, means that the category of 'consumer' is now a temporary behavior rather than a permanent identity."—(Clay Shirky, Here Comes Everybody, 107-108) [1]

Review

Pat Kane:

"In Clay Shirky's account, the power of the web is that its networks make it "ridiculously easy" to form groups. In the UK, this might sound familiar: the "little platoons" of civil society, as outlined by Smith, Ferguson and Burke in the 18th century. The cheaply printed and distributed pamphlet or journal drove "gentlemen of ideas" to coffee-houses in Edinburgh and London, as a blog forum can enable devotees of a cause to turn up in a front room in Hampstead or Halifax.

What Shirky is claiming as revolutionary is the combination of power and cheapness that social software offers – greatly amplifying our natural desire to create associations. If traditional organisations want to get large groups acting together, they usually need a costly hierarchy of management to orchestrate their thousands, or tens of thousands, of employees. And organisations, particularly commercial ones, will only do those (profitable) things that justify the expense of all that managerial structure.

What the fecund social chaos of the net reveals is that so much group activity can easily happen, if the "transactional costs" of organising it (as the jargon has it) are brought close to zero. Which is exactly what Web 2.0 does. Take the exemplar of this new world, Wikipedia. This extraordinary resource exists because the web allows it: those who have an idealism about education and knowledge (remember the Enlightenment?) can easily come together, mutually monitoring their contributions to a global encyclopedia. They can take their own time, too: when there are no institutional overheads, "you don't have to be efficient, just effective".

However, when the LA Times turned its op-eds into "wikitorials" in 2005 – open to emendation by all – it was an abuse-ridden disaster. Many suppressed voices finally got their chance to rail at editorial pomposity. Wikis work "when people are committed to the outcomes... when they augment community, not replace it". Our social tools, says Shirky without a hint of a blush, "are turning love and care into a renewable building material". If people stopped believing in the Wikipedian ideal, and used its tools for vandalism, "it's unlikely the whole enterprise would survive a week".

Shirky attempts to be as usable as the technology he writes about. He provides the clearest explanation I have yet read of why Microsoft is being challenged by open-source software communities like Linux. In an echo of Beckett's "fail again, fail better", it turns out that the costs of perpetual innovation in open-source are amazingly low. It might look an uneven and erratic process from a Microsoft manager's perspective, but all this perpetual tinkering ("more like accreting a coral reef, than building a car") is enough to produce an operating system immensely cheaper but just as robust as Bill Gates's offering.

Here Comes Everybody has a refreshing interest in activism, rather than yet more digital pabulum for worried CEOs. Shirky is interested in how social software can help human-rights protesters in Belarus, the Philippines or Egypt raise a stink; how it can allow Catholics to protest against Church corruption, or help frequently-stranded flyers demand a bill of consumer rights from aviation behemoths.

He evinces a Tom-Paine-ish belief in the power of informed grassroots democracy, but effectively throws his hands up faced with the flipside of US politics – how these social tools can also "increase the resilience of networked terrorist groups". The spread of the web is like "steering a kayak" in an unstoppable technological stream. "Our principle challenge is not to decide where we want to go but rather to stay upright as we go there." (http://www.independent.co.uk/arts-entertainment/books/reviews/here-comes-everybody-by-clay-shirky-wethink-by-charles-leadbeater-798702.html)

Here also a lengthy review by Dave Pollard, at http://blogs.salon.com/0002007/2009/05/24.html#a2384

Discussion

The Key Argument of the Book

Felix Stalder:

" There are limits to the scale particular forms of organisation can handle efficiently. Ever since the publication of Roland Coase's seminal article ‘The Nature of the Firm’ in 1937, economists and organisational theorists have been analysing the ‘Coasian ceiling’. It indicates the maximum size an organisation can grow to before the costs of managing its internal complexity rise beyond the gains the increased size can offer. At that point, it becomes more efficient to acquire a resource externally (e.g. to buy it) than to produce it internally. This has to do with the relative transaction costs generated by each way of securing that resource. If these costs decline in general (e.g. due to new communication technologies and management techniques) two things can take place. On the one hand, the ceiling rises, meaning large firms can grow even larger without becoming inefficient. On the other hand, small firms are becoming more competitive because they can handle the complexities of larger markets. This decline in transaction costs is a key element in the organisational transformations of the last three decades, creating today's environment where very large global players and relatively small companies can compete in global markets. Yet, a moderate decline does not affect the basic structure of production as being organised through firms and markets.

In 2002, Yochai Benkler was the first to argue that production was no longer bound to the old dichotomy between firms and markets. Rather, a third mode of production had emerged which he called ‘commons-based peer production’.1 Here, the central mode of coordination was neither command (as it is inside the firm) nor price (as it is in the market) but self-assigned volunteer contributions to a common pool of resources. This new mode of production, Benkler points out, relies on the dramatic decline in transaction costs made possible by the internet. Shirky develops this idea into a different direction, by introducing the concept of the ‘Coasian floor’.

Organised efforts underneath this floor are, as Shirky writes,

‘valuable to someone but too expensive to be taken on in any institutional way, because the basic and unsheddable costs of being an institution in the first place make those activities not worth pursuing’.

Until recently, life underneath that floor was necessarily small scale because scaling up required building up an organisation and this was prohibitively expensive. Now, and this is Shirky's central claim, even large group efforts are no longer dependent on the existence of a formal organisation with its overheads. Or, as he memorably puts it, ‘we are used to a world where little things happen for love, and big things happen for money. ... Now, though, we can do big things for love’. (http://www.metamute.org/en/content/analysis_without_analysis)

More Information

Video presentation by the author: Clay Shirky on Here Comes Everybody