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Juhana	
  Venäläinen	
  
Researcher,	
  PhD	
  Student	
  
University	
  of	
  Eastern	
  Finland	
  
School	
  of	
  Humanities	
  
juhana.venalainen@uef.fi	
  
5516126	
  New	
  Commons	
  /	
  Juhana	
  Venäläinen	
  /	
  University	
  of	
  Eastern	
  Finland	
  /	
  Spring	
  2013	
  
¡  1.	
  A	
  few	
  more	
  words	
  on	
  P2P	
  
¡  2.	
  Immaterial	
  and	
  affective	
  labor	
  
¡  3.	
  Cognitive	
  capitalism	
  
¡  4.	
  ”Freedom”	
  in	
  a	
  commons?	
  
¡  P2P	
  infrastructure:	
  
§  1.	
  Technological	
  infra	
  (”fixed	
  capital”)	
  
§  2.	
  Autonomous	
  information	
  and	
  communication	
  
systems	
  
§  3.	
  Software	
  for	
  autonomous	
  global	
  cooperation	
  
§  4.	
  Legal	
  infrastructure	
  for	
  affirming	
  and	
  
protecting	
  use-­‐value	
  
§  5.	
  Suitable	
  cultural	
  conditions	
  (new	
  ways	
  of	
  being,	
  
knowing	
  and	
  valuing)	
  
(Bauwens	
  2005)	
  
¡  P2P	
  characteristics	
  
§  1.	
  Distributed	
  networks	
  
§  2.	
  Anti-­‐credentialism	
  (=inclusive	
  communities)	
  
§  3.	
  Holoptism	
  (*)	
  (contra	
  panoptism)	
  -­‐>	
  horizontal	
  
distribution	
  of	
  the	
  process	
  management	
  
§  4.	
  Flexible	
  hierarchies	
  
§  5.	
  Distributed	
  leadership	
  
§  6.	
  Non-­‐reciprocal	
  gift	
  economy	
  
§  (*)	
  a	
  term	
  coined	
  by	
  Jean-­‐François	
  Noubel	
  
¡  Digitalism:	
  Modern	
  
ideology	
  of	
  equality	
  
and	
  a	
  cult	
  of	
  
englightenment	
  
§  Parallels	
  between	
  lingual	
  
and	
  biological	
  domains	
  
§  Illusion	
  of	
  ”energy-­‐free”	
  
reproduction	
  of	
  
information	
  
§  Utopy	
  of	
  a	
  reciprocal	
  gift	
  
economy	
  
¡  1.	
  Ignoring	
  wetware	
  
§  Hardware,	
  software	
  and	
  netware	
  are	
  not	
  sufficient	
  for	
  
building	
  autonomous	
  commons	
  
§  More	
  focus	
  should	
  be	
  put	
  on	
  the	
  reproduction	
  of	
  the	
  
“peers”	
  as	
  “wetware”	
  (biological,	
  mental	
  beings)	
  
¡  2.	
  Misfocusing	
  the	
  struggle	
  of	
  digital	
  freedom	
  
§  Overemphasis	
  on	
  the	
  rights	
  to	
  singular	
  cultural	
  
artefacts	
  (-­‐>	
  copyright	
  regimes,	
  etc.)	
  
§  Underemphasis	
  on	
  the	
  rights	
  to	
  the	
  infrastructure	
  
§  -­‐>	
  theory	
  of	
  “cognitive	
  rent”	
  
(Pasquinelli	
  2008)	
  
¡  The	
  preference	
  of	
  ”direct”	
  social	
  engagement	
  
over	
  money-­‐mediated	
  market	
  engagement	
  
¡  A	
  ”humanist”	
  idea	
  of	
  the	
  immeasurability	
  of	
  
the	
  value	
  of	
  persons	
  and	
  their	
  efforts	
  
¡  A	
  generalized	
  critique	
  of	
  the	
  money-­‐form	
  
(Virén	
  &	
  Vähämäki	
  2011)	
  
¡  Work	
  done	
  on	
  the	
  networking	
  commons:	
  
beyond	
  measure”	
  and	
  beyond	
  control?	
  
¡  Or:	
  measured	
  and	
  controlled	
  differently?	
  
§  Equality	
  matching	
  (eye-­‐for-­‐an-­‐eye)	
  
§  Informal	
  measurements	
  of	
  effort	
  
§  Communal	
  pressure	
  
§  Meritocracy	
  
§  Oligarchy	
  
¡  What	
  is	
  it	
  “production”	
  of,	
  if	
  anything?	
  
¡  What	
  are	
  the	
  “commons”	
  in	
  question?	
  
¡  E.g.	
  sharing	
  copyrighted	
  music	
  via	
  BitTorrent	
  protocol	
  
§  The	
  cultural	
  artefacts	
  are	
  produced	
  outside	
  this	
  networking	
  
commons	
  and	
  expropriated	
  to	
  the	
  commons	
  (a	
  “counter-­‐
enclosure”)	
  
§  New	
  kind	
  of	
  “relational”	
  products	
  through	
  the	
  practices	
  of	
  
sharing:	
  
▪  New	
  consumption	
  patterns,	
  trends,	
  hypes	
  
▪  New	
  market	
  information	
  
▪  New	
  ways	
  of	
  advertising	
  
§  -­‐>	
  the	
  idea	
  of	
  consumer	
  as	
  a	
  producer	
  (“prosumption”,	
  
“produsage”)	
  
¡  “Culture	
  of	
  sharing”	
  as	
  a	
  double-­‐edged	
  sword	
  
¡  Sharing	
  as	
  “freedom”?	
  
¡  Capitalizing	
  on	
  the	
  sharing	
  
¡  Creates	
  a	
  global	
  market	
  of	
  “audience	
  
commodities”	
  
¡  Technological	
  &	
  economic	
  infrastructures	
  of	
  
sharing:	
  highly	
  concentrated	
  
¡  The	
  changing	
  role	
  of	
  affects	
  in	
  capitalist	
  
economy	
  
¡  Affects	
  as	
  directly	
  productive	
  of	
  capital	
  
¡  Affective	
  labor	
  as	
  one	
  of	
  the	
  highest	
  value-­‐
producing	
  forms	
  of	
  labor	
  (from	
  the	
  point	
  of	
  
view	
  of	
  capital)	
  
	
  
¡  Global	
  economy	
  is	
  (=was)	
  taking	
  a	
  step	
  towards	
  
“postmodernization”	
  
§  Shift	
  from	
  industrial	
  production	
  to	
  informational	
  
economy	
  
§  Does	
  not	
  imply	
  the	
  disappearance	
  of	
  the	
  previous	
  
forms	
  of	
  labor	
  (industrial,	
  agricultural)	
  
§  Rather	
  the	
  introduction	
  of	
  communicative	
  techniques	
  
in	
  all	
  sectors	
  of	
  production	
  (“treat	
  manufacturing	
  as	
  a	
  
service”)	
  
¡  The	
  old	
  conception	
  of	
  the	
  global	
  division	
  of	
  labor	
  
(I	
  =	
  informational,	
  II	
  =	
  industrial,	
  III	
  =	
  agricultural)	
  
does	
  not	
  apply	
  
§  “All	
  forms	
  of	
  production	
  exist	
  […]	
  under	
  the	
  
domination	
  of	
  the	
  informational	
  production	
  of	
  
services”	
  
¡  Fordism	
  
§  “Mute”	
  relation	
  b/w	
  production	
  and	
  consumption	
  
§  Producer	
  can	
  expect	
  100	
  %	
  demand	
  of	
  everything	
  produced	
  
§  -­‐>	
  delayed	
  and	
  restricted	
  “feedback	
  circuit”	
  from	
  consumption	
  to	
  production	
  
¡  Toyotism	
  
§  Production	
  planning	
  communicates	
  rapidly	
  with	
  the	
  market	
  changes	
  (-­‐>	
  fast	
  
“feedback	
  circuit”)	
  
§  Just	
  in	
  time	
  production	
  
¡  Service	
  economy	
  model	
  
§  Communication	
  as	
  productive	
  –	
  and	
  as	
  a	
  product	
  –	
  in	
  itself	
  
§  Based	
  on	
  continual	
  exchange	
  of	
  information	
  and	
  knowledges	
  
§  “The	
  model	
  of	
  a	
  computer”	
  as	
  a	
  paradigm	
  of	
  production	
  
§  -­‐>	
  immaterial	
  labor	
  
¡  The	
  “other	
  face”	
  of	
  immaterial	
  labor	
  
¡  Involves	
  human	
  contact	
  and	
  interaction	
  
¡  Plays	
  a	
  vital	
  role	
  in	
  service	
  industries	
  from	
  fast-­‐
food	
  restaurants	
  to	
  stock	
  trading	
  
¡  Produces	
  “immaterial	
  goods”:	
  feelings,	
  
excitement,	
  passion,	
  a	
  sense	
  of	
  connectedness	
  
¡  -­‐>	
  creation	
  and	
  manipulation	
  of	
  affects	
  
¡  Main	
  theses:	
  
§  1.	
  The	
  focus	
  of	
  the	
  wealth	
  creation	
  has	
  been	
  relocated	
  from	
  material	
  
production	
  to	
  the	
  production	
  of	
  knowledge,	
  affects	
  and	
  “life	
  in	
  itself”	
  
§  2.	
  The	
  affective/cognitive	
  component	
  of	
  value	
  creation	
  is	
  not	
  only	
  
“mental”	
  or	
  “immaterial”	
  but	
  diffused	
  in	
  different	
  “materialities”	
  
§  3.	
  The	
  extraction	
  of	
  surplus	
  value	
  is	
  not	
  based	
  on	
  concrete	
  
organization	
  of	
  work	
  within	
  a	
  firm	
  but	
  on	
  the	
  exploitation	
  of	
  the	
  
voluntary,	
  independent	
  and	
  non-­‐paid	
  cooperation	
  of	
  workers	
  through	
  
“cognitive	
  rent”	
  
¡  Notable	
  theorists	
  
§  Carlo	
  Vercellone	
  (2005;	
  2007;	
  2008),	
  Yann	
  Moulier	
  Boutang	
  (2007),	
  
Enzo	
  Rullani	
  (2000;	
  2004a;	
  2004b);	
  Andrea	
  Fumagalli	
  (2007)	
  	
  
¡  A	
  new	
  mode	
  of	
  capital	
  accumulation	
  
§  Based	
  on	
  knowledge	
  and	
  creativity	
  
§  Knowledge	
  as	
  the	
  prominent	
  factor	
  of	
  production	
  and	
  the	
  
site	
  of	
  value	
  creation	
  
§  Stresses	
  investments	
  on	
  the	
  immaterial	
  (education,	
  R&D,	
  
communications	
  infra,	
  “human	
  capital”	
  in	
  general)	
  
¡  Key	
  parameters	
  of	
  the	
  accumulation	
  system:	
  
§  Property	
  rights	
  arrangements	
  
§  Networks	
  and	
  alliances	
  
§  Projects	
  management	
  
§  Geographical,	
  institutional	
  and	
  organizational	
  conditions	
  
for	
  extracting	
  profit	
  from	
  knowledge	
  and	
  innovation	
  
¡  Virtualization	
  of	
  the	
  economy	
  
¡  Digitization	
  of	
  knowledge	
  
¡  ICT	
  as	
  socio-­‐technological	
  resource	
  
¡  Collapse	
  of	
  the	
  division	
  of	
  labor	
  
¡  Real-­‐time	
  production	
  
¡  Tendency	
  of	
  open	
  access	
  
¡  Crises	
  in	
  IP	
  rights	
  
¡  “Biopolitical”	
  mode	
  of	
  production	
  
¡  “Information	
  technology,	
  personal	
  computers	
  
and	
  Internet	
  will	
  rise	
  to	
  a	
  similar	
  position	
  as	
  
metaphors	
  as	
  the	
  coal	
  mine,	
  steam	
  engine,	
  
weaving	
  machine	
  and	
  railway	
  were	
  for	
  
industrial	
  capitalism.”	
  (Moulier	
  Boutang	
  2007)	
  
¡  -­‐>	
  a	
  new	
  historical	
  phase	
  and	
  regime	
  of	
  
organizing	
  production	
  and	
  the	
  social	
  life	
  in	
  
general	
  
¡  Scope	
  of	
  Google	
  
§  Over	
  1	
  trillion	
  indexed	
  pages	
  (2008)	
  
§  Total	
  revenue	
  ca.	
  50	
  bn$	
  (2012)	
  
§  Market	
  share	
  of	
  84	
  %	
  in	
  desktop	
  search	
  (2011)	
  
¡  McKinsey	
  &	
  Company	
  (2011):	
  
§  The	
  global	
  added	
  value	
  of	
  search	
  in	
  2009:	
  780	
  bn$	
  
▪  -­‐>	
  0,50	
  $	
  /	
  search	
  
§  Only	
  4	
  %	
  of	
  the	
  added	
  value	
  is	
  capitalized	
  within	
  the	
  “search	
  engine	
  
industry”	
  
▪  The	
  bulk	
  of	
  profit	
  is	
  gained	
  by	
  other	
  industries	
  and	
  individual	
  households	
  
¡  Beckström’s	
  Law	
  
§  The	
  value	
  of	
  a	
  network	
  equals	
  the	
  net	
  value	
  added	
  to	
  each	
  user’s	
  
transactions	
  conducted	
  through	
  that	
  network,	
  summed	
  over	
  all	
  users	
  
¡  1.	
  Not	
  in	
  the	
  production	
  of	
  new	
  knowledge,	
  but	
  in	
  
processing	
  pre-­‐existing	
  information	
  
§  Exhibition	
  
§  Filtering	
  
§  Production	
  of	
  the	
  context	
  
¡  2.	
  Not	
  in	
  individually	
  genuine	
  ideas,	
  but	
  in	
  attention	
  
and	
  relation	
  between	
  different	
  contents	
  
¡  3.	
  Not	
  in	
  direct	
  control	
  of	
  the	
  users’	
  behaviour,	
  but	
  in	
  
providing	
  a	
  technological	
  and	
  social	
  platform	
  of	
  free	
  
communication	
  
¡  “Political	
  entrepreneur”	
  (Moulier	
  Boutang)	
  
§  Does	
  not	
  invest	
  in	
  actual	
  production	
  processes	
  or	
  
launch	
  them	
  
§  -­‐>	
  tries	
  to	
  arrange	
  and	
  control	
  the	
  already	
  existing	
  
processes	
  and	
  extract	
  value	
  from	
  them	
  
¡  Fuchs	
  (2011):	
  The	
  extraction	
  of	
  value	
  in	
  Google	
  is	
  
based	
  on	
  the	
  non-­‐paid	
  work	
  done	
  by	
  the	
  users	
  
§  Users	
  provide	
  the	
  actual	
  content	
  
§  Users	
  provide	
  the	
  relational	
  information	
  (metadata)	
  
on	
  the	
  content	
  
▪  What	
  is	
  “interesting”	
  
▪  What	
  is	
  trending	
  
▪  Which	
  contents	
  are	
  related	
  and	
  how	
  
¡  Google	
  extracts	
  surplus	
  value	
  from	
  audience	
  
commodities	
  sold	
  in	
  targeted	
  advertising	
  
¡  Hardin:	
  “Freedom	
  in	
  a	
  commons	
  brings	
  ruin	
  
to	
  all”	
  
¡  Now:	
  Freedom	
  in	
  a	
  commons	
  brings	
  profit	
  to	
  
all?	
  
¡  -­‐>	
  But	
  what	
  freedom,	
  what	
  profit,	
  to	
  who	
  all,	
  
and	
  how?	
  
¡  "The	
  development	
  of	
  each	
  human	
  fate	
  can	
  be	
  
represented	
  as	
  an	
  uninterrupted	
  alternation	
  
between	
  bondage	
  and	
  release,	
  obligation	
  and	
  
freedom.	
  This	
  initial	
  appraisal,	
  however,	
  
presents	
  us	
  with	
  a	
  distinction	
  whose	
  abruptness	
  
is	
  tempered	
  by	
  closer	
  investigation.	
  For	
  what	
  we	
  
regard	
  as	
  freedom	
  is	
  often	
  in	
  fact	
  only	
  a	
  change	
  
of	
  obligations	
  [...]	
  The	
  process	
  of	
  liberation	
  now	
  
starts	
  again	
  with	
  this	
  new	
  duty,	
  just	
  as	
  it	
  had	
  
ended	
  at	
  this	
  very	
  point.”	
  
–	
  Simmel,	
  "The	
  Philosophy	
  of	
  Money",	
  4.I	
  
“Power	
  is	
  exercised	
  
only	
  over	
  free	
  
subjects,	
  and	
  only	
  
insofar	
  as	
  they	
  are	
  
free.	
  […]	
  At	
  the	
  very	
  
heart	
  of	
  the	
  power	
  
relationship,	
  and	
  
constantly	
  provoking	
  
it,	
  are	
  the	
  
recalcitrance	
  [disobedience]	
  
of	
  the	
  will	
  	
  
and	
  the	
  	
  
intransigence	
  [stubbornness]	
  
of	
  freedom.”	
  
(Michel	
  Foucault,	
  “The	
  Subject	
  and	
  Power”,	
  cited	
  in	
  Hardt	
  &	
  Negri	
  2009,	
  p.	
  59)	
  
¡  Bauwens,	
  Michel.	
  2005.	
  “The	
  Political	
  Economy	
  of	
  Peer	
  Production”.	
  CTHEORY.	
  
http://www.ctheory.net/articles.aspx?id=499	
  
¡  Bughin,	
  Jacques	
  ym.	
  2011.	
  The	
  impact	
  of	
  Internet	
  technologies:	
  Search.	
  McKinsey	
  &	
  Company.	
  
¡  Fumagalli,	
  Andrea.	
  2007.	
  Bioeconomia	
  e	
  capitalismo	
  cognitivo.	
  Verso	
  un	
  nuovo	
  paradigma	
  di	
  
accumulazione.	
  Roma:	
  Carocci.	
  
¡  Hardt,	
  Michael.	
  1999.	
  “Affective	
  Labor”.	
  boundary	
  2	
  26(2):	
  89-­‐100.	
  
¡  Hardt,	
  Michael	
  &	
  Antonio	
  Negri.	
  2009.	
  Commonwealth.	
  Cambridge,	
  Mass.:	
  Belknap	
  Press	
  of	
  
Harvard	
  University	
  Press.	
  
¡  Moulier	
  Boutang,	
  Yann.	
  2007.	
  Le	
  capitalisme	
  cognitif:	
  la	
  nouvelle	
  grande	
  transformation.	
  Paris:	
  Éd.	
  
Amsterdam.	
  
¡  Negri,	
  Antonio.	
  1999.	
  “Value	
  and	
  Affect”.	
  boundary	
  2	
  26(2):	
  77–88.	
  
¡  Pasquinelli,	
  Matteo.	
  2008.	
  Animal	
  Spirits:	
  A	
  Bestiary	
  of	
  the	
  Commons.	
  Rotterdam:	
  NAi	
  
Publishers	
  /	
  Institute	
  of	
  Network	
  Cultures.	
  
¡  Simmel,	
  Georg.	
  2004[1900].	
  The	
  philosophy	
  of	
  money.	
  Psychology	
  Press.	
  
¡  Vercellone,	
  Carlo.	
  2005.	
  “The	
  hypothesis	
  of	
  cognitive	
  capitalism”.	
  
¡  Vercellone,	
  Carlo.	
  2008.	
  “The	
  new	
  articulation	
  of	
  wages,	
  rent	
  and	
  profit	
  in	
  cognitive	
  capitalism”.	
  
Queen	
  Mary	
  University	
  School	
  of	
  Business	
  and	
  Management,	
  London.	
  
¡  Viren,	
  Eetu,	
  ja	
  Jussi	
  Vähämäki.	
  2011.	
  Perinnöttömien	
  perinne:	
  Marx	
  ilman	
  marxismia.	
  Helsinki:	
  
Tutkijaliitto.	
  

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New Commons 6/6: Capitalizing (on) the Common

  • 1. Juhana  Venäläinen   Researcher,  PhD  Student   University  of  Eastern  Finland   School  of  Humanities   juhana.venalainen@uef.fi   5516126  New  Commons  /  Juhana  Venäläinen  /  University  of  Eastern  Finland  /  Spring  2013  
  • 2. ¡  1.  A  few  more  words  on  P2P   ¡  2.  Immaterial  and  affective  labor   ¡  3.  Cognitive  capitalism   ¡  4.  ”Freedom”  in  a  commons?  
  • 3. ¡  P2P  infrastructure:   §  1.  Technological  infra  (”fixed  capital”)   §  2.  Autonomous  information  and  communication   systems   §  3.  Software  for  autonomous  global  cooperation   §  4.  Legal  infrastructure  for  affirming  and   protecting  use-­‐value   §  5.  Suitable  cultural  conditions  (new  ways  of  being,   knowing  and  valuing)   (Bauwens  2005)  
  • 4. ¡  P2P  characteristics   §  1.  Distributed  networks   §  2.  Anti-­‐credentialism  (=inclusive  communities)   §  3.  Holoptism  (*)  (contra  panoptism)  -­‐>  horizontal   distribution  of  the  process  management   §  4.  Flexible  hierarchies   §  5.  Distributed  leadership   §  6.  Non-­‐reciprocal  gift  economy   §  (*)  a  term  coined  by  Jean-­‐François  Noubel  
  • 5. ¡  Digitalism:  Modern   ideology  of  equality   and  a  cult  of   englightenment   §  Parallels  between  lingual   and  biological  domains   §  Illusion  of  ”energy-­‐free”   reproduction  of   information   §  Utopy  of  a  reciprocal  gift   economy  
  • 6. ¡  1.  Ignoring  wetware   §  Hardware,  software  and  netware  are  not  sufficient  for   building  autonomous  commons   §  More  focus  should  be  put  on  the  reproduction  of  the   “peers”  as  “wetware”  (biological,  mental  beings)   ¡  2.  Misfocusing  the  struggle  of  digital  freedom   §  Overemphasis  on  the  rights  to  singular  cultural   artefacts  (-­‐>  copyright  regimes,  etc.)   §  Underemphasis  on  the  rights  to  the  infrastructure   §  -­‐>  theory  of  “cognitive  rent”   (Pasquinelli  2008)  
  • 7. ¡  The  preference  of  ”direct”  social  engagement   over  money-­‐mediated  market  engagement   ¡  A  ”humanist”  idea  of  the  immeasurability  of   the  value  of  persons  and  their  efforts   ¡  A  generalized  critique  of  the  money-­‐form   (Virén  &  Vähämäki  2011)  
  • 8. ¡  Work  done  on  the  networking  commons:   beyond  measure”  and  beyond  control?   ¡  Or:  measured  and  controlled  differently?   §  Equality  matching  (eye-­‐for-­‐an-­‐eye)   §  Informal  measurements  of  effort   §  Communal  pressure   §  Meritocracy   §  Oligarchy  
  • 9. ¡  What  is  it  “production”  of,  if  anything?   ¡  What  are  the  “commons”  in  question?   ¡  E.g.  sharing  copyrighted  music  via  BitTorrent  protocol   §  The  cultural  artefacts  are  produced  outside  this  networking   commons  and  expropriated  to  the  commons  (a  “counter-­‐ enclosure”)   §  New  kind  of  “relational”  products  through  the  practices  of   sharing:   ▪  New  consumption  patterns,  trends,  hypes   ▪  New  market  information   ▪  New  ways  of  advertising   §  -­‐>  the  idea  of  consumer  as  a  producer  (“prosumption”,   “produsage”)  
  • 10. ¡  “Culture  of  sharing”  as  a  double-­‐edged  sword   ¡  Sharing  as  “freedom”?   ¡  Capitalizing  on  the  sharing   ¡  Creates  a  global  market  of  “audience   commodities”   ¡  Technological  &  economic  infrastructures  of   sharing:  highly  concentrated  
  • 11.
  • 12. ¡  The  changing  role  of  affects  in  capitalist   economy   ¡  Affects  as  directly  productive  of  capital   ¡  Affective  labor  as  one  of  the  highest  value-­‐ producing  forms  of  labor  (from  the  point  of   view  of  capital)    
  • 13. ¡  Global  economy  is  (=was)  taking  a  step  towards   “postmodernization”   §  Shift  from  industrial  production  to  informational   economy   §  Does  not  imply  the  disappearance  of  the  previous   forms  of  labor  (industrial,  agricultural)   §  Rather  the  introduction  of  communicative  techniques   in  all  sectors  of  production  (“treat  manufacturing  as  a   service”)   ¡  The  old  conception  of  the  global  division  of  labor   (I  =  informational,  II  =  industrial,  III  =  agricultural)   does  not  apply   §  “All  forms  of  production  exist  […]  under  the   domination  of  the  informational  production  of   services”  
  • 14. ¡  Fordism   §  “Mute”  relation  b/w  production  and  consumption   §  Producer  can  expect  100  %  demand  of  everything  produced   §  -­‐>  delayed  and  restricted  “feedback  circuit”  from  consumption  to  production   ¡  Toyotism   §  Production  planning  communicates  rapidly  with  the  market  changes  (-­‐>  fast   “feedback  circuit”)   §  Just  in  time  production   ¡  Service  economy  model   §  Communication  as  productive  –  and  as  a  product  –  in  itself   §  Based  on  continual  exchange  of  information  and  knowledges   §  “The  model  of  a  computer”  as  a  paradigm  of  production   §  -­‐>  immaterial  labor  
  • 15. ¡  The  “other  face”  of  immaterial  labor   ¡  Involves  human  contact  and  interaction   ¡  Plays  a  vital  role  in  service  industries  from  fast-­‐ food  restaurants  to  stock  trading   ¡  Produces  “immaterial  goods”:  feelings,   excitement,  passion,  a  sense  of  connectedness   ¡  -­‐>  creation  and  manipulation  of  affects  
  • 16.
  • 17.
  • 18. ¡  Main  theses:   §  1.  The  focus  of  the  wealth  creation  has  been  relocated  from  material   production  to  the  production  of  knowledge,  affects  and  “life  in  itself”   §  2.  The  affective/cognitive  component  of  value  creation  is  not  only   “mental”  or  “immaterial”  but  diffused  in  different  “materialities”   §  3.  The  extraction  of  surplus  value  is  not  based  on  concrete   organization  of  work  within  a  firm  but  on  the  exploitation  of  the   voluntary,  independent  and  non-­‐paid  cooperation  of  workers  through   “cognitive  rent”   ¡  Notable  theorists   §  Carlo  Vercellone  (2005;  2007;  2008),  Yann  Moulier  Boutang  (2007),   Enzo  Rullani  (2000;  2004a;  2004b);  Andrea  Fumagalli  (2007)    
  • 19. ¡  A  new  mode  of  capital  accumulation   §  Based  on  knowledge  and  creativity   §  Knowledge  as  the  prominent  factor  of  production  and  the   site  of  value  creation   §  Stresses  investments  on  the  immaterial  (education,  R&D,   communications  infra,  “human  capital”  in  general)   ¡  Key  parameters  of  the  accumulation  system:   §  Property  rights  arrangements   §  Networks  and  alliances   §  Projects  management   §  Geographical,  institutional  and  organizational  conditions   for  extracting  profit  from  knowledge  and  innovation  
  • 20. ¡  Virtualization  of  the  economy   ¡  Digitization  of  knowledge   ¡  ICT  as  socio-­‐technological  resource   ¡  Collapse  of  the  division  of  labor   ¡  Real-­‐time  production   ¡  Tendency  of  open  access   ¡  Crises  in  IP  rights   ¡  “Biopolitical”  mode  of  production  
  • 21. ¡  “Information  technology,  personal  computers   and  Internet  will  rise  to  a  similar  position  as   metaphors  as  the  coal  mine,  steam  engine,   weaving  machine  and  railway  were  for   industrial  capitalism.”  (Moulier  Boutang  2007)   ¡  -­‐>  a  new  historical  phase  and  regime  of   organizing  production  and  the  social  life  in   general  
  • 22.
  • 23. ¡  Scope  of  Google   §  Over  1  trillion  indexed  pages  (2008)   §  Total  revenue  ca.  50  bn$  (2012)   §  Market  share  of  84  %  in  desktop  search  (2011)   ¡  McKinsey  &  Company  (2011):   §  The  global  added  value  of  search  in  2009:  780  bn$   ▪  -­‐>  0,50  $  /  search   §  Only  4  %  of  the  added  value  is  capitalized  within  the  “search  engine   industry”   ▪  The  bulk  of  profit  is  gained  by  other  industries  and  individual  households   ¡  Beckström’s  Law   §  The  value  of  a  network  equals  the  net  value  added  to  each  user’s   transactions  conducted  through  that  network,  summed  over  all  users  
  • 24. ¡  1.  Not  in  the  production  of  new  knowledge,  but  in   processing  pre-­‐existing  information   §  Exhibition   §  Filtering   §  Production  of  the  context   ¡  2.  Not  in  individually  genuine  ideas,  but  in  attention   and  relation  between  different  contents   ¡  3.  Not  in  direct  control  of  the  users’  behaviour,  but  in   providing  a  technological  and  social  platform  of  free   communication  
  • 25. ¡  “Political  entrepreneur”  (Moulier  Boutang)   §  Does  not  invest  in  actual  production  processes  or   launch  them   §  -­‐>  tries  to  arrange  and  control  the  already  existing   processes  and  extract  value  from  them  
  • 26. ¡  Fuchs  (2011):  The  extraction  of  value  in  Google  is   based  on  the  non-­‐paid  work  done  by  the  users   §  Users  provide  the  actual  content   §  Users  provide  the  relational  information  (metadata)   on  the  content   ▪  What  is  “interesting”   ▪  What  is  trending   ▪  Which  contents  are  related  and  how   ¡  Google  extracts  surplus  value  from  audience   commodities  sold  in  targeted  advertising  
  • 27. ¡  Hardin:  “Freedom  in  a  commons  brings  ruin   to  all”   ¡  Now:  Freedom  in  a  commons  brings  profit  to   all?   ¡  -­‐>  But  what  freedom,  what  profit,  to  who  all,   and  how?  
  • 28. ¡  "The  development  of  each  human  fate  can  be   represented  as  an  uninterrupted  alternation   between  bondage  and  release,  obligation  and   freedom.  This  initial  appraisal,  however,   presents  us  with  a  distinction  whose  abruptness   is  tempered  by  closer  investigation.  For  what  we   regard  as  freedom  is  often  in  fact  only  a  change   of  obligations  [...]  The  process  of  liberation  now   starts  again  with  this  new  duty,  just  as  it  had   ended  at  this  very  point.”   –  Simmel,  "The  Philosophy  of  Money",  4.I  
  • 29. “Power  is  exercised   only  over  free   subjects,  and  only   insofar  as  they  are   free.  […]  At  the  very   heart  of  the  power   relationship,  and   constantly  provoking   it,  are  the   recalcitrance  [disobedience]   of  the  will     and  the     intransigence  [stubbornness]   of  freedom.”   (Michel  Foucault,  “The  Subject  and  Power”,  cited  in  Hardt  &  Negri  2009,  p.  59)  
  • 30. ¡  Bauwens,  Michel.  2005.  “The  Political  Economy  of  Peer  Production”.  CTHEORY.   http://www.ctheory.net/articles.aspx?id=499   ¡  Bughin,  Jacques  ym.  2011.  The  impact  of  Internet  technologies:  Search.  McKinsey  &  Company.   ¡  Fumagalli,  Andrea.  2007.  Bioeconomia  e  capitalismo  cognitivo.  Verso  un  nuovo  paradigma  di   accumulazione.  Roma:  Carocci.   ¡  Hardt,  Michael.  1999.  “Affective  Labor”.  boundary  2  26(2):  89-­‐100.   ¡  Hardt,  Michael  &  Antonio  Negri.  2009.  Commonwealth.  Cambridge,  Mass.:  Belknap  Press  of   Harvard  University  Press.   ¡  Moulier  Boutang,  Yann.  2007.  Le  capitalisme  cognitif:  la  nouvelle  grande  transformation.  Paris:  Éd.   Amsterdam.   ¡  Negri,  Antonio.  1999.  “Value  and  Affect”.  boundary  2  26(2):  77–88.   ¡  Pasquinelli,  Matteo.  2008.  Animal  Spirits:  A  Bestiary  of  the  Commons.  Rotterdam:  NAi   Publishers  /  Institute  of  Network  Cultures.   ¡  Simmel,  Georg.  2004[1900].  The  philosophy  of  money.  Psychology  Press.   ¡  Vercellone,  Carlo.  2005.  “The  hypothesis  of  cognitive  capitalism”.   ¡  Vercellone,  Carlo.  2008.  “The  new  articulation  of  wages,  rent  and  profit  in  cognitive  capitalism”.   Queen  Mary  University  School  of  Business  and  Management,  London.   ¡  Viren,  Eetu,  ja  Jussi  Vähämäki.  2011.  Perinnöttömien  perinne:  Marx  ilman  marxismia.  Helsinki:   Tutkijaliitto.