The Power of the Powerless

July 25 2022, by Matt Perez

Dictatorships are held together by historical roots, ideology, and the very people they dominate. Looked at it through this lense, businesses are dictatorship and Havel’s analysis applies to them as well.

 

According to Václav Havel, dictatorships are held together by historical roots, ideology, and the very people they dominate. That is what he concluded in the The Power of Powerless. Looked at it through this lense, businesses are dictatorship.

The Power of Dictatorships

In October 1978, Václav Havel, the Czech dramatist and then political dissident, published The Power of the Powerless. Twenty years later the Velvet Revolution brought a bloodless transition of power to the country and Havel as President. ∇ 

In the essay, his most striking observation is that what keeps together dictatorships is the acceptance of the very people that they oppress ∇ . He also observed that soviet-style dictatorships are based on a huge power block, historical roots, ideology-as-securalized-religion, and State ownership of “the means of production,” that is, everything that can generate wealth, including people. In summary,

Huge
Power
Block

The “system is not limited in a local, geographical sense.” Rather, Havel writes, “it holds sway over a huge power block.” ∇ 

Historical
Roots

The system does not lack historical roots. It took form on the back of “the proletarian social movements of the nineteenth century.” ∇ 

Ideology as
Securalized
Religion

It commands a “…precise, logically structured, generally comprehensible and … extremely flexible ideology that… is almost a secularized religion.” ∇ 

State
Ownership

The dictatorship has “ownership and central direction of all the means of production.” ∇ 

Dictatorships
& Democracies

This type of dictatorship is “another form of the consumer and industrial society, with all its concomitant social, intellectual, and psychological consequences.” ∇ 

Dictatorships Are Fiat Hierarchies

As I read the essay, I got more and more excited as I realized how well the Radical model aligned with each of these points,

Huge
Power
Block

Within each nation, businesses “hold sway over” all levels of governments, particularly about the way they get and spend their money. Around the world, multinationals & ldquo;hold sway over” over many countries at once, “a huge power block.”

In other words, businesses, no matter their size, are part of a huge power block.

Historical
Roots

Although there is not a Left and Right ideology when it comes to businesses, there is a cultural ideology that supports them. Among others, Roy S Jacques writes that “Beginning in the Western Europe of the fourteenth to sixteenth century one find a growth of a mode of consciousness… [that] has a ‘mechanical’ orientation to it, emphasizing instrumentality, emotionlessness, accumulation, skepticism, individual consciousness, standardization, and objectification. It is also from this mode of consciousness that the particular form of production and exchange currently dominant worldwide has emerged.

He continues to say that between the 17th and 19th century, “Liberty no longer meant the freedom to perfect an enclosed city protected from the world. It was redirected as the freedom to conquer and order that outer world. Progress no longer meant movement toward a finite goal, but infinite expansion into a limitless universe.” Conquering and infinite expansion is the ideology that sustains businesses to this day.

In other words, businesses have a historical root, one that is embedded in today’s Fiat culture.

Ideology as
Securalized
Religion

The unquestioned acceptance of what ownership means and how it works is the secularized religion of businesses. “Ownership” is the mysterious, unmentionable name of this religion. The overwhelming majority of the stuff listed under “business/economics,” including books on self-management, are simply tweaks of this religion, but they are blind to the issue of “ownership”.

In other words, the business ideology, then, is the unquestioned acceptance of ownership as is.

State
Ownership

Admittedly, State ownership is a worst case, but ownership by a few bosses is pretty bad, too

In other words, ownership as is the invisible culprit and we need to see it for what it is and all its implications.

Dictatorships
& Democracies

Admittedly, democracies are better for people than dictatorships. Still, they both are different shapes “… of the consumer and industrial society.” ∇ 

In other words, if we can agree that extremely centralized ownership (i.e. Soviet-style dictatorships) doesn't work as well as more decentralized ownership, then we must move towards an even more decentralized ownership model (i.e. co-owned companies)

Businesses fit every one of theses observations.

Businesses Are Dictatorships

Businesses fit depressingly well in Havel’s framework. And this leads to the inescapable conclusion that democracies (governments) are based on dictatorships (businesses) called businesses. Even though we intuitively know that “a government is not a business”, we go back and forth on it. The Radical model is a tool to convert the dictatorships called businesses into companies that operate more like democracies, with decentralized decision-making and ownership. ∇  A side-effect of this is that people will be equipped to be more engaged in their governance. As they learn to be company co-owners, people will learn to co-own their governance as well.

Huge
Power
Block

Over time, businesses have come to make up a huge international block (i.e., and, no, not due to a conspiracy or any such). We need to experiment with models based on people and their communities instead. The RADICAL COMPANIES book offers a viable model. ∇ 

Historical
Roots

History is made little by little and that’s how’ve ended up in the mess we are in, burning our own life boat, little by little. According to David Graeber, author of Debt: the First 5,000 Years, ∇  the fuel for this has been debt. Quantified debt gave birth to money which in turn made it easy to extract and accumulate wealth.

Ideology as
Securalized
Religion

The ideology of Soviet-style dictatorships was based on Marx’ prescription, half-baked as they were.

Western democracies’ ideology ends up being something like, “Work hard and you, too, can become wealthy. Good luck!.” ∇ 

State
Ownership

New wealth creates some public goods, but much of it ends up as private goods. In the case of dictatorships, the party bosses live very well (i.e., off their private goods) and get to command the allocation of the rest. In democracies, much of this wealth ends up in the hands of a few business owners who also live very well, but the rest of this wealth is passed to the State from which public goods comes out.

Dictatorships
& Democracies

People’s effort and commerce fuels dictatorships and democracies alike. This is not to say that they are alike: by far, democracy is preferable to dictatorship (i.e., I’ve lives under both systems). But the fact still remains that they are both fueled by people’s effort and commerce.

Through their efforts and commerce, people create wealth. In dictatorships, a lot of it goes to the State; in democracies, much of it goes to businesses and then the State. People keep enough to make a living, through many not even than, and some public goods trickle down from the State (e.g., roads, bridges, public schools). ∇  In other words, this wealth creates some public goods, but the overwhelming portion of it ends up in private hands. But even these public goods benefit primarily the interests of businesses and the State. Roads and bridges make it possible for people to get to work to create wealth for businesses and the same roads and bridges make it easier to move the tanks where the State needs the muscle. It so happens to be the same roads and bridges that people use to go to the beach on weekends.

I should also point out that in both dictatorships and democracies a lot of this wealth ends up in the so-called industrial-military complex. ∇ 

Most of us learn to see this centralization of power as a positive thing, ”thank goodness, because if it weren’t for the State/businesses/military would not have nice things like bridges, roads, and schools.” Sadly, even though this system is literally unsustainable, this mindset stops us from doing anything about it. We need to decentralize decision-making. Centralization is not good for us. It is hostile to innovation and even hostile to commerce. What innovation there is, (e,g,, in medicine) is accidental and it overwhelmingly ends up as private goods.

Towards Decentralization and Transparency

If you believe, as I do, that decentralized ownership and decision-making (i.e., democracy) is better than centralized State control (i.e., dictatorship), ∇  then it follows that we should insist on moving towards decentralization. Our lives depend on it. Unfortunately, this will require a change in mindset that goes against everything we “know,”

ENDNOTES

  • Andy Kopsa. Czechoslovakia’s Velvet Revolution Started 30 Years Ago—But It Was Decades in the Making. November 2019. <…/radicals.world/1L3hyA>

  • According to Havel, the Left or Right labels don’t matter all dictatorships are the same. The same observation was made by Etienne de la Boetie in 1577 in The Politics of Obedience: The Discourse of Voluntary Servitude. “… even millions cling to the tyrant by this cord to which they are tied.”. <…/radicals.world/7cmqB2>

    I quite agree. For example, Cuba’s Castro (Left?) and Argentina’s Perón had a close relationship and supported each other, even though the former claimed to be “Left” and the latter “Right.” See the Dictator’s Handbook by Bruce Bueno de Mesquita. <…/radicals.world/xO7ufx>

  • Václav Havel. The Power of the Powerless <https://a.co/8WPhu0s>

  • Václav Havel. The Power of the Powerless <https://a.co/0lq6pO8>

  • Václav Havel. The Power of the Powerless <https://a.co/5iYNWtF>

  • Václav Havel. The Power of the Powerless <https://a.co/6sKvSlv>

  • Václav Havel. The Power of the Powerless <https://a.co/enNA5rq>

  • Václav Havel. The Power of the Powerless <https://a.co/bPEY1mO>.

  • Company comes from Latin as com- and pan, meaning bread. It refers to a group of people who break bread together.

  • Matt Perez, Adrian Perez, Jose Leal. RADICAL COMPANIES: Without Bosses or Employees. <https://radicalcompanies.com>. 2020.

  • David Graeber. Debt: 5,00 Year History. 2014. <https://radicals.world/MUUUcg>

  • Chinese-style dictatorships’s “ideology” seems to be something like, “Work hard, become wealthy, and we'll leave you alone unless you threaten our political control (and then we'll disappear you). If you are not wealthy, be obedient and get back work (i.e., to create wealth for us).

  • And no public goods emanate from businesses (i.e., not even from B Corps).

  • The same industrial-military complex that then President Eisenhower warned us about in his 1960 Farewell Address. The plan was to wind down our military muscle after Wold War II, but the war hardware producers managed to put the kibosh on that. They got the military hooked on war toys. The military in turn got Congress hooked on pork programs that got them re-elected (i.e., and this is what blocked President Eisenhower). And these pork programs created jobs that generated wealth that the war hardware producers needed to kept the engine running. <https://radicals.world/f3Nboy>

  • The story goes that in the People’s Republic of China (PRC) dictatorship, private businesses and centralized political power cohabitate peacefully. You can have it all. At least that's the mirage created and maintained for people outside the PRC. As the latest Party boss, Xi Jinping has shown, the so-called-private companies can be brought to kneel by the dictatorships at any time. What really is going on is that the regime allows a handful of people (i.e., the very rich and the upper middle class) to live well so long as they “follow our orders, or else.”

By: Matt Perez
Co-founder RADICAL World

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