Thursday, February 7, 2013

Apres Deluge: Mondragon

Let's jump ahead a decade, and say the civil war in USA has ended, and USA looks like Spain after their civil war, circa May 1939.  The economy in shambles, fascism firmly victorious, people exhausted by war, want and disease.

The new government is not organized enough to either help nor hinder, there is only the terror of being disappeared.  What emerges is what some people call autarky, but I would call anarchy (in the good sense.)

Autarky is the quality of being self-sufficient. Usually the term is applied to political states or their economic systems. The latter are called closed economies.[1] Autarky exists whenever an entity can survive or continue its activities without external assistance orinternational trade. Autarky is not necessarily economic. For example, a military autarky would be a state that could defend itself without help from another country. Autarky can be said to be the policy of a state or other entity when it seeks to be self-sufficient as a whole, but also can be limited to a narrow field such as possession of a key raw material.

To my mind, autarky is a subset of anarchy.

In any event, conditions were most dire in the Basque region, an area populated by peoples the progressives would deem subject to extermination, like Scottish highlanders or the Irish.  Where sin abounds, grace abounds all the more.  In these terrible circumstances, with the decks cleared, a remarkable economic system emerged, Mondragon:

The determining factor in the creation of the Mondragon system was the arrival in 1941 of a young Catholic priest José María Arizmendiarrieta in Mondragón, a town with a population of 7,000 that had not yet recovered from the Spanish Civil War: poverty, hunger, exile and tension.[4] In 1943 Arizmendiarrieta established a technical college that became a training ground for generations of managers, engineers and skilled labour for local companies, and primarily for the co-operatives.[5]

This hugely successful enterprise is based on the co-operative model.  I've addressed this before here. The Mondragon entry is an interesting article, and I want to highlight same points:


This entire framework of business culture has been structured on the basis of a common culture derived from the 10 Basic Co-operative Principles, in which MONDRAGON is deeply rooted: Open Admission, Democratic Organisation, the Sovereignty of Labour, Instrumental and Subordinate Nature of Capital, Participatory Management, Payment Solidarity, Inter-cooperation, Social Transformation, Universality and Education.[15]


Note the comprehensive nature of the mission.  In USA corporate culture, laser sharp mission focus is stressed.  This cooperative would have a hard time saying "I am not responsible" since it is considerate of all it touches, USA corporations seemed to be designed to escape responsibility.  But particularly interesting is the idea of sovereignty of labor, an idea I suspect is defunct in practice, but redeployed as "employees acting as consultants, treating employers as clients."  This I'd like to investigate.

The next point -


This inspirational philosophy is complemented by the establishment of four Corporate Values: Co-operation, acting as owners and protagonists; Participation, which takes shape as a commitment to management; Social Responsibility, by means of the distribution of wealth based on solidarity; and Innovation, focusing on constant renewal in all areas.[16]


That sharing seems problematical, but I do like the implicit rejection of intellectual property rights.  And Then, looky here, customer focus is number one.


This business culture translates into compliance with a number of Basic Objectives (Customer Focus, Development, Innovation, Profitability, People in Co-operation and Involvement in the Community) and General Policies approved by the Co-operative Congress, which are taken on board at all the Corporation’s organisational levels and incorporated into the four-year strategic plans and the annual business plans of the individual co-operatives, the Divisions, and the Corporation as a whole.[17]

The article mentions that Mondragon is heavy in loans and finance, so I'd like to find out if they work on a usury model, contrary to the teaching of the Catholic Church.  

Lessons?  Any group in USA targeted for extermination ought to consider this system.  In fact, this is not unlike what the Nation of Islam under Muhammed Elijah and Minister Farrakhan has devised.  American Indians may be better off with this than with a Casino based economy.  And small businesses may consider this.

For my part, I see yet another book.

Feel free to forward this to three of your friends.


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