Preview of Next “Scenario 1999” Entry

The following is a preview of an upcoming Entry that I am working on for Scenario 1999. The Entry in question remains unfinished as of this writing. My goal is to finish it and another Entry sometime before the end of this week.

Corporatization involves transferring an Economic Organization, like a State-Owned Enterprise, from Parliament to a Public Corporation that it has some discernible control over. A comparable trend in the Market/Mixed Economy is Demutualization, where smaller Economic Organizations such as Cooperatives are transferred away from the personnel governing them to the Financial Markets and the broader Market/Mixed Economy. When the Market/Mixed Economy and Financial Markets gain enough influence over an Economic Organization, the next logical step is Marketization. Here, the Incentives of Supply and Demand are given greater emphasis as Parliament’s role within the activities of an Economic Organization are diminished in favor of the Market/Mixed Economy. Should the Market/Mixed Economy gain even more influence over an Economic Organization, a Public-Private Partnership (P3) becomes entertainable.

The key attributes associated with a Public-Private Partnership concern the creation, financing, establishment, ownership, operation, and maintenance of an Economic Organization. In Production for Utility, Parliament (as the “Public Sector”) is responsible for some combination of those attributes, whereas the Market/Mixed Economy (as the “Private Sector”) oversees other attributes not covered by Parliament. The ownership attribute determines whether Parliament or the Market/Mixed Economy will control a particular Economic Organization. Will ownership be transferred to the Market/Mixed Economy will the affected Economic Organization remain under Parliament’s control? If so, will the Market/Mixed Economy gain full control, or will it be a temporary arrangement?  

Those questions in turn determine whether an Economic Organization will be fully privatized or remain governed by Parliament. Should Parliament transfer complete control of an Economic Organization to the Market/Mixed Economy, the process of Privatization has been completed. The affected Economic Organization will thereby operate on Production for Profit, relying on Kapital Accumulation from transactional sales, loans provided by the Fractional-Reserve Banking System, and LCFIs (Liberal Capitalist Financial Instruments) purchased by investors at the Financial Markets.

By contrast, the transition from Production for Profit to Production for Utility involves the act of transferring ownership away from the Market/Mixed Economy and toward Parliament. The P3 concept in Neoliberalism provides a suitable model for how an Economic Organization undergoes that transition. Since Privatization and P3s also exist in Production for Utility as they do in Production for Profit, there should be opposites for Marketization, Demutualization, and Corporatization. Their equivalents would have to be “Subsidization,” “Mutualization,” and “Nationalization.” Those three are indicative of varying degrees of ownership transitioning away from the Market/Mixed Economy to the Parliament within the framework of Kapital and Schuld, the Fractional-Reserve Banking System, and even the Incentives of Supply and Demand in certain cases.

The opposing model of Economic Organization in The Work-Standard (2nd Ed.) involves governance being split between “State Sector” and “Social Sector.” The most significant distinction is that governance was not determined by mere possession but by their position in relation to the overall ability to create Arbeit and Geld. The more capable an Economic Organization becomes at contributing Arbeit and Geld to the Life-Energy Reserve, the more likely it will become attain the next higher Social Rank. This can be discerned by their increased size and composition, diversification of economic activities, and delegation over smaller Economic Organization among the lower Social Ranks. This resulted in the proposal of different methods of governing large Economic Organizations in The Third Place (1st Ed.), such as Codetermination, Worker’s Self-Management, and Joint-Ownership. Economic Organizations with very high Social Ranks will eventually be brought under the governance of the Council State, whereas smaller ones can be overseen by a Guild. These arrangements are made possible due to the distinct characteristics of Council Democracy. Economic life cannot be completely separated from political life and vice versa.

The power to participate in the political process from the workspace also implies the power of the personnel of an Economic Organization to vote on internal issues. For instance, if the personnel could vote for their Delegates, they should also be able to vote against the dissolution of their Enterprise. If they can negotiate with the State Commissariats to determine the Value of their Arbeit and the Price in Geld, they should also be able to coordinate their activities with one or more Enterprises in their own respective Industry through some form of cooperation and competition.

The five-tier model of Economic Organizations outlined in The Work-Standard (2nd Ed.) could be defined as “Social Administration,” “Social Governance,” “National-Socialization,” “State Governance,” and “State Administration,” all of which can be formatted in the Social Ranking System employed by the Tournament. Each corresponds to PDEs, POEs, NSEs, SOEs, and SAEs respectively.

A more complex rendition appears towards the end of that Treatise concerning the distinct characteristics of American Federalism. That particular model had up to thirteen types of Enterprises split into three Tiers for the Municipal, State, and Federal Governments. The Americanized Social Ranking System among Economic Organizations would follow six categories, with two categories pertaining to each Tier: “Socialization” and “Municipalization”; “Regionalization” and “State-Socialization”; “National-Socialization” and “Federalization.”  

We can expect similar arrangements to also be occurring in the other four major economics of Scenario 1999. In a world order where the economic growth of nations is based on their abilities to create Arbeit and Geld, the Germanic, Soviet, Chinese, and Imperial Japanese economies would have their own distinct vectors for Economic Organization. Assuming every Economic Organization is in fact an Enterprise within a given Industry, what forms will they take if not “Public” or “Private?”

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